Document:

Capital Salary Continuation Agreement

 Exhibit 10.21 
  
 CAPITALBANK 
 SALARY CONTINUATION AGREEMENT 
  
 THIS AGREEMENT is adopted this 17th day of October, 2002, by and between CAPITALBANK, a state-chartered commercial bank located in Greenwood, South Carolina (the “Company”), and WILLIAM G. STEVENS (the “Executive”). 

 
 INTRODUCTION 
  
 To encourage the Executive to remain an employee of the Company, the Company is willing to provide salary continuation benefits to the Executive. The Company will pay the benefits from its general assets. 

 
 AGREEMENT 
  
 The Company and the Executive agree as follows: 
  
 Article 1 
 Definitions 
  
 Whenever used in this
Agreement, the following words and phrases shall have the meanings specified: 
  
 1.1  “Benefit
Amount” means 49.45% of the Executive’s Compensation. 
  
 1.2  “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. 
  
 1.3  “Code” means the Internal Revenue Code of 1986, as amended. 
  
 1.4  “Compensation” means the highest average annual combined total of annual base salary paid plus bonus earned for such year calculated for a
three consecutive year period occurring in the most recently completed five calendar year period at the date of Termination of Employment. If the Executive has not been employed by the Company for three full calendar years at the time of Termination
of Employment, the average calculation will be based on the number of completed calendar years of employment. (Example: Executive is hired at the beginning of year 1. Base salary paid and bonus earned in year1, respectively, are $100,000 and
$10,000; year 2 are $110,000 and $11,000; year 3 are $90,000 and $9,000; year 4 are $110,000 and $5,000; year 5 are $95,000 and $15,000. If termination of employment occurs in at the end of year 5, Compensation for purposes of this Agreement will be
$111,667, the average annual combined base salary paid and bonus earned in years 2-4. If termination of employment occurs at the end of year 2, Compensation for purposes of this Agreement will be $115,500, the average annual combined base salary
paid and bonus earned in years 1 and 2.) 
  
 1.5  “Disability” means the Executive’s
suffering a sickness, accident or injury which has been determined by the carrier of any individual or group disability insurance policy covering the Executive, or by the Social Security Administration, to be a disability rendering the Executive
totally and permanently disabled. The Executive must submit proof to the Company of the carrier’s or Social Security Administration’s determination upon the request of the Company. 
  
 1.6  “Early Termination” means the Termination of Employment before Normal Retirement Age for reasons other than death, Disability, Termination
for Cause or following a Change in Control. 
  
 1.7  “Early Termination Date” means the
month, day and year in which Early Termination occurs. 
  
 1.8  “Effective Date” means
September 1, 2002. 
  
 1.9  “Normal Retirement Age” means the August 31st immediately following the Executive’s 65th birthday. 
  
 1.10  “Normal Retirement Date” means the later of the Normal Retirement Age or Termination of Employment. 
  
 1.11  “Plan Year” means a twelve-month period commencing on September 1st and ending on August 31st of the following
year. The initial Plan Year shall commence on the Effective Date of this Agreement. 

 
 1 

  
 1.12  “Termination for Cause” means Termination of
Employment by the Company for reasons that shall include, but not be limited to, the commission of any of the following by the Executive: dishonesty; theft; unethical business conduct; indictment for a felony; indictment for a misdemeanor involving
moral turpitude; drug or alcohol addiction; lack of competence in the performance of any duty on behalf of the Company; violation of the terms and provisions of this Agreement; insubordination or failure to comply with reasonable instructions of the
Company; material violation by Executive of any federal or state banking law, rule or regulation; causing or permitting, whether intentionally or negligently, the Company to materially violate and federal or state banking law, rule or regulation; if
Executive is suspended and/or temporarily prohibited from participating in the conduct of the Company’s affairs by notice served under Section 8(e) of the Federal Deposit Insurance Act (12 U.S.C., Section 1818(e)); or failure of Executive to
relocate his residence in accordance with Section 5 of the Executive’s employment agreement in effect on the Effective Date or as subsequently amended. 
  
 1.13  “Termination of Employment” means that the Executive ceases to be employed by the Company for any reason, voluntary or involuntary, other
than by reason of a leave of absence approved by the Company. 
  
 1.14  “Vesting
Percentage” means a cumulative ten percent (10%) for each Year of Service until a maximum of one hundred percent (100%) after ten (10) Years of Service. 
  
 1.15  “Year(s) of Service” means a full 12-month period of continuous employment (including an approved leave of absence) beginning with the Executive’s date of hire by the
Company. 
  
 Article 2 
 Lifetime Benefits 
  
 2.1  Normal Retirement
Benefit.    Upon Termination of Employment on or after the Normal Retirement Age for reasons other than death, the Company shall pay to the Executive the benefit described in this Section 2.1 in lieu of any other benefit
under this Agreement. 
  
 2.1.1  Amount of Benefit.    The
annual benefit under this Section 2.1 is the Benefit Amount. 
  
 2.1.2  Payment
of Benefit.    The Company shall pay the annual benefit to the Executive in 12 equal monthly installments commencing with the month following the Executive’s Normal Retirement Date, paying the annual benefit to the
Executive for a period of eighteen years. 
  
 2.2  Early Termination
Benefit.    Upon Early Termination, the Company shall pay to the Executive the benefit described in this Section 2.2 in lieu of any other benefit under this Agreement. 
  

2.2.1  Amount of Benefit.    The benefit under this Section 2.2 is the Early Termination 

 
 2 

 Annual Benefit set forth in Schedule A for the Plan Year ending immediately prior to the Early Termination Date (except
during the first Plan Year, the benefit is the amount set forth for Plan Year 1), determined by multiplying the Accrual Balance set forth in Schedule A for the Plan Year ending immediately prior to the Early Termination Date by the Vesting
Percentage achieved at the Early Termination Date . Schedule A shall be recalculated each Plan Year to reflect current Compensation based on actual salary and bonus. The resulting Benefit Amount shall be projected to normal retirement date with a 4%
annual increase.] This benefit is determined by calculating a two-hundred sixteen month fixed annuity from the vested Accrual Balance, crediting interest on the unpaid balance at an annual rate of eight percent, compounded monthly. 

 
 2.2.2  Payment of Benefit.    The Company shall pay the annual benefit to
the Executive in 12 equal monthly installments commencing with the month following the Normal Retirement Age, paying the annual benefit to the Executive for a period of eighteen years. 
  

2.3  Disability Benefit.    If the Executive terminates employment due to Disability prior to Normal Retirement Age, the Company
shall pay to the Executive the benefit described in this Section 2.3 in lieu of any other benefit under this Agreement. 
  
 2.3.1  Amount of Benefit.    The benefit under this Section 2.3 is the Disability Lump-sum Benefit set forth in Schedule A for the Plan Year ending immediately prior to the date in which
the Termination of Employment occurs (except during the first Plan Year, the benefit is the amount set forth for Plan Year 1), determined by vesting the Executive in 100 percent of the Accrual Balance. Schedule A shall be recalculated each Plan Year
to reflect current Compensation based on actual salary and bonus. 
  
 2.3.2  Payment of
Benefit.    The Company shall pay the Accrual Balance to the Executive in a lump sum within 90 days following Termination of Employment.  
  
 2.4  Change of Control Benefit.    Upon Termination of Employment following a Change of Control, the Company shall pay to the Executive
the benefit described in this Section 2.4 in lieu of any other benefit under this Agreement. 
  
 2.4.1  Amount of Benefit.    The benefit under this Section 2.4 is the Change in Control Annual Benefit set forth in Schedule A for the Plan Year ending immediately prior to the date in which
Termination of Employment occurs (except during the first Plan Year, the benefit is the amount set forth for Plan Year 1), determined by vesting the Executive in the Normal Retirement Benefit described in Section 2.1.1 calculated as if the Executive
had remained employed by the Company until the Normal Retirement Age. 
  
 2.4.2  Payment
of Benefit.    The Company shall pay the annual benefit to the Executive in 12 equal monthly installments commencing with the month following the Normal Retirement Age, paying the annual benefit to the
Executive for a period of eighteen years. 

 
 3 

  
 Article 3 
 Death Benefits 
  
 3.1  Death During Active
Service.    If the Executive dies while in the active service of the Company, the Company shall pay to the Executive’s beneficiary the benefit described in this Section 3.1. This benefit shall be paid in lieu of the
benefits under Article 2. 
  
 3.1.1  Amount of Benefit.    The
benefit under this Section 3.1 is the Accrual Balance set forth in Schedule A for the Plan Year ending immediately prior to the Early Termination Date. 
  
 3.1.2  Payment of Benefit.    The Company shall pay the benefit to the Executive’s beneficiary in a lump sum
within 90 days following the Executive’s death. 
  
 3.2  Death During Payment of a Lifetime
Benefit.    If the Executive dies after any Lifetime Benefit payments have commenced under this Agreement but before receiving all such payments, the Company shall pay the remaining Accrual Balance at the time of the
Executive’s death to the Executive’s beneficiary in a lump sum within 90 days of the Executive’s death. 
  
 3.3  Death After Termination of Employment But Before Payment of a Lifetime Benefit Commences.    If the Executive is entitled to a Lifetime Benefit under this Agreement, but dies prior to
the commencement of said benefit payments, the Company shall pay the Accrual Balance at the time of the Executive’s death to the Executive’s beneficiary in a lump sum within 90 days of the Executive’s death. 
  
 Article 4 
 Beneficiaries 

 
 4.1  Beneficiary Designations.    The Executive shall designate a beneficiary by filing a
written designation with the Company. The Executive may revoke or modify the designation at any time by filing a new designation. However, designations will only be effective if signed by the Executive and received by the Company during the
Executive’s lifetime. 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.
If the Executive dies without a valid beneficiary designation, all payments shall be made to the Executive’s estate. 
  
 4.2  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. 

 
 4 

  
 Article 5 
 General Limitations 
  
 5.1  Termination for
Cause.    Notwithstanding any provision of this Agreement to the contrary, the Company shall not pay any benefit under this Agreement if the Executive is subject to a Termination for Cause. 
  
 5.2  Suicide or Misstatement.    The Company shall not pay any benefit under this Agreement if the
Executive commits suicide within three years after the date of this Agreement. In addition, the Company shall not pay any benefit under this Agreement if the Executive has made any material misstatement of fact on an employment application or resume
provided to the Company, or on any application for any benefits provided by the Company to the Executive. 
  
 5.3  Competition After Termination of Employment.    The Company shall not pay any benefit under this Agreement if the Executive, without the prior written consent of the Company and within 2
years from the Executive’s Termination of Employment, engages in, becomes interested in, directly or indirectly, as a sole proprietor, as a partner in a partnership, or as a substantial shareholder in a corporation, or becomes associated with,
in the capacity of employee, director, officer, principal, agent, trustee or in any other capacity whatsoever, any enterprise conducted in the trading area (a 50 mile radius) of the business of the Company, which enterprise is, or may deemed to be,
competitive with any business carried on by the Company as of the date of termination of the Executive’s employment or retirement. This section shall not apply following a Change in Control. 
  

5.4  Solicitation After Termination of Employment.    The Company shall not pay any benefit under this Agreement if the Executive,
without the prior written consent of the Company and within 2 years from the Executive’s Termination of Employment, solicits any employee of the Company for the purpose of hiring such employee away from the Company or solicits any customer of
the Company that was a customer of the Company at or prior to the Executive’s Termination of Employment for the purpose of obtaining such customer’s business relationship in any manner that could be deemed to be competitive to the Company.
This section shall not apply following a Change in Control. 
  
 Article 6 
 Claims and Review Procedures 
  
 6.1  Claims
Procedure.    The Executive or beneficiary (“claimant”) who has not received benefits under the Plan that he or she believes should be paid shall make a claim for such benefits as follows: 
  
 6.1.1  Initiation – Written Claim.    The claimant initiates a claim by
submitting to the Company a written claim for the benefits. 

 
 5 

 6.1.2  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.

  
 6.1.3  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: 
  
 (a)  The specific reasons for the denial, 
 (b)  A reference to the specific provisions of the Plan on which the denial is based, 
 (c)  A description of any additional information or material necessary for the claimant to perfect the claim and an explanation of why it is needed, 
 (d)  An explanation of the Plan’s review procedures and the time limits applicable to such procedures, and 
 (e)  A statement of the claimant’s right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination on review. 
  
 6.2  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: 
  
 6.2.1  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. 
  
 6.2.2  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. 
  
 6.2.3  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. 
  
 6.2.4  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

 
 6 

 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. 
  
 6.2.5  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: 
  
 (a)  The specific reasons for the denial,

 (b)  A reference to the specific provisions of the Plan on which the denial is based, 
 (c)  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 
 (d)  A statement of the claimant’s right to bring a civil action under ERISA Section 502(a). 
  
 Article 7 
 Amendments and Termination 
  
 This Agreement may be amended only by a written agreement signed by the Company and the Executive. 
  
 Notwithstanding the previous paragraph in this Article 7, the Company may terminate this Agreement at any time. However, in no event shall this Agreement be terminated under this Article 7 without
payment to the Executive of 100% of the Accrual Balance set forth on Schedule A (recalculated as set forth in Section 2.2.1) for the end of the Plan Year in which termination of the Agreement occurs. 
  
 Article 8 
 Miscellaneous 

 
 8.1  Binding Effect.    This Agreement shall bind the Executive and the Company, and their
beneficiaries,   survivors, executors, successors, administrators and transferees. 
  
 8.2  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 Company, nor does it interfere with the Company’s right to
discharge the Executive. It also does not require the Executive to remain an employee nor interfere with the Executive’s right to terminate employment at any time. 
  
 8.3  Non-Transferability.    Benefits under this Agreement cannot be sold, transferred, assigned, pledged, attached or encumbered in
any manner. 
  
 7.4  Reorganization.    The Company shall not merge or
consolidate into or with another 

 
 7 

 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. 
  
 8.5    Tax Withholding.    The Company shall
withhold any taxes that are required to be withheld from the benefits provided under this Agreement. 
  
 8.6    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. 
  
 8.7    Unfunded Arrangement.    The
Executive and 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 Executive’s life is a general asset of the Company to which the Executive and beneficiary have no
preferred or secured claim. 
  
 8.8    Entire
Agreement.    This Agreement constitutes the entire agreement between the Company and the Executive as to the subject matter hereof. No rights are granted to the Executive by virtue of this Agreement other than those
specifically set forth herein. 
  
 8.9    Administration.  The Company shall
have powers which are necessary to administer this Agreement, including but not limited to: 
  
 (a)    Establishing and revising the method of accounting for the Agreement; 
  
 (b)    Maintaining a record of benefit payments; 
  
 (c)    Establishing rules and prescribing any forms necessary or desirable to administer the Agreement; and 
  
 (d)    Interpreting the provisions of the Agreement. 
  
 8.10    Named Fiduciary.    The Company shall be the named fiduciary and plan administrator under this Agreement. It may delegate to others certain aspects of the management and
operational responsibilities including the employment of advisors and the delegation of ministerial duties to qualified individuals. 
  
 IN WITNESS WHEREOF, the Executive and the Company have signed this Agreement. 

 
 8 

  
 
	 EXECUTIVE:
 	 	  	 	 COMPANY: 
 CAPITALBANK
 
	 
	 /s/    WILLIAM G. STEVENS        
 
	 	  	 	 By
 	 	 /s/    Ralph W. Brewer        
 

	 WILLIAM G. STEVENS
 	 	  	 	 Title
 	 	 Chief Financial Officer        
 

 
  
  
  
 BENEFICIARY DESIGNATION 

 
 9 

  
 CAPITALBANK 
 SALARY CONTINUATION AGREEMENT 
  
 WILLIAM G. STEVENS 
  
 I designate the following as beneficiary of any death benefits under this Agreement: 
  

	

 Primary:  Linda M. Stevens 
  
 
 
 Contingent:  W. Gerald Stevens (50%) 
  
 Susan S. Laird (50%) 
 
 

	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 Company. 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
 	 	 /s/    William G. Stevens        
 

 
  
 Date October 17, 2002 
  
  
  
 Received by the Company this 17th day of October, 2002. 
  
 
	 
	 By
 	 	 /s/    R. Wesley Brewer         
 

 
 
	 
	 Title:
 	 	 Chief Financial Officer        
 

 

 
 10 

  
 CAPITALBANK 
 WILLIAM G. STEVENS 
 Salary Continuation Agreement 
 Schedule A 
  
 
	 Plan
 Year

Ending
 
	  	 Benefit
 Level
 
	  	 Accrual
 Balance
 
	  	 Early Term.
 Vesting
 Schedule
 
	  	 Vested Accrual Balance
 
	  	 Early
 Termination
 Annual Benefit
 Payable at 65
 
	  	 Change of
 Control

Annual Benefit
 Payable at 65
 
	  	 Disability
 Lump-sum
 Benefit
 Payable
 Immediately
 

	 Aug-03
 	  	 116,267
 	  	   103,671
 	  	 100%
 	  	   103,671
 	  	   18,895
 	  	 152,999
 	  	   103,671
 
	 Aug-04
 	  	 120,918
 	  	   220,899
 	  	 100%
 	  	   220,899
 	  	   37,175
 	  	 152,999
 	  	   220,899
 
	 Aug-05
 	  	 125,754
 	  	   354,130
 	  	 100%
 	  	   354,130
 	  	   55,029
 	  	 152,999
 	  	   354,130
 
	 Aug-06
 	  	 130,784
 	  	   506,591
 	  	 100%
 	  	   506,591
 	  	   72,687
 	  	 152,999
 	  	   506,591
 
	 Aug-07
 	  	 136,016
 	  	   682,788
 	  	 100%
 	  	   682,788
 	  	   90,460
 	  	 152,999
 	  	   682,788
 
	 Aug-08
 	  	 141,456
 	  	   889,630
 	  	 100%
 	  	   889,630
 	  	 108,831
 	  	 152,999
 	  	   889,630
 
	 Aug-09
 	  	 147,115
 	  	 1,139,685
 	  	 100%
 	  	 1,139,685
 	  	 128,735
 	  	 152,999
 	  	 1,139,685
 
	 Aug-10
 	  	 152,999
 	  	 1,466,913
 	  	 100%
 	  	 1,466,913
 	  	 152,999
 	  	 152,999
 	  	 1,466,913
 

 

 
 11Capital Salary Continuation

 Exhibit 10.22 
  
 CAPITALBANK 
 SALARY CONTINUATION AGREEMENT 
  
 THIS AGREEMENT is adopted this 17th day of October, 2002, by and between CAPITALBANK, a state-chartered commercial bank located in Greenwood, South Carolina (the
“Company”), and RALPH W. BREWER (the “Executive”). 
  
 INTRODUCTION 
  
 To encourage the Executive to remain an employee of the Company, the Company is willing to provide salary continuation benefits to the
Executive. The Company will pay the benefits from its general assets. 
  
 AGREEMENT 
  
 The Company and the Executive agree as follows: 
  
 Article 1 
 Definitions 
  
 Whenever used in this Agreement, the following words and phrases shall have the meanings specified: 
  
 1.1  “Benefit Amount” means 40% of the Executive’s Compensation. 
  
 1.2  “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. 

 1.3  “Code” means the Internal Revenue Code of 1986, as amended. 
  
 1.4  “Compensation” means the highest average annual combined total of annual base salary paid plus bonus
earned for such year calculated for a three consecutive year period occurring in the most recently completed five calendar year period at the date of Termination of Employment. If the Executive has not been employed by the Company for three full
calendar years at the time of Termination of Employment, the average calculation will be based on the number of completed calendar years of employment. (Example: Executive is hired at the beginning of year 1. Base salary paid and bonus earned in
year1, respectively, are $100,000 and $10,000; year 2 are $110,000 and $11,000; year 3 are $90,000 and $9,000; year 4 are $110,000 and $5,000; year 5 are $95,000 and $15,000. If termination of employment occurs in at the end of year 5, Compensation
for purposes of this Agreement will be $111,667, the average annual combined base salary paid and bonus earned in years 2-4. If termination of employment occurs at the end of year 2, Compensation for purposes of this Agreement will be $115,500, the
average annual combined base salary paid and bonus earned in years 1 and 2.) 
  
 1.5  “Disability” means the Executive’s suffering a sickness, accident or injury which has been determined by the carrier of any individual or group disability insurance policy covering the Executive,
or by the Social Security Administration, to be a disability rendering the Executive totally and permanently disabled. The Executive must submit proof to the Company of the carrier’s or Social Security Administration’s determination upon
the request of the Company. 
  
 1.6  “Early Termination” means the Termination of
Employment before Normal Retirement Age for reasons other than death, Disability, Termination for Cause or following a Change in Control. 
  
 1.7  “Early Termination Date” means the month, day and year in which Early Termination occurs. 
  
 1.8  “Effective Date” means September 1, 2002. 
  
 1.9  “Normal Retirement Age” means the August 31st immediately
following the Executive’s 62nd birthday. 
  
 1.10  “Normal Retirement Date” means the later of the Normal Retirement Age or Termination of Employment. 
  
 1.11  “Plan Year” means a twelve-month period commencing on September 1st and ending on August 31st of the following year. The initial Plan Year shall commence on the Effective Date of this Agreement. 
  
 1.12  “Termination for Cause” means Termination of Employment by the Company for reasons that shall include, but not be limited to, the commission of any of the following by
the Executive: dishonesty; theft; unethical business conduct; indictment for a felony; indictment for a 

 
 1 

 misdemeanor involving moral turpitude; drug or alcohol addiction; lack of competence in the performance of any duty on behalf of the Company;
violation of the terms and provisions of this Agreement; insubordination or failure to comply with reasonable instructions of the Company; material violation by Executive of any federal or state banking law, rule or regulation; causing or
permitting, whether intentionally or negligently, the Company to materially violate and federal or state banking law, rule or regulation; if Executive is suspended and/or temporarily prohibited from participating in the conduct of the Company’s
affairs by notice served under Section 8(e) of the Federal Deposit Insurance Act (12 U.S.C., Section 1818(e)); or failure of Executive to relocate his residence in accordance with Section 5 of the Executive’s employment agreement in
effect on the Effective Date or as subsequently amended. 
  
 1.13  “Termination of
Employment” means that the Executive ceases to be employed by the Company for any reason, voluntary or involuntary, other than by reason of a leave of absence approved by the Company. 
  

1.14  “Vesting Percentage” means a cumulative ten percent (10%) for each Year of Service until a maximum of one hundred percent (100%) after
ten (10) Years of Service. 
  
 1.15  “Year(s) of Service” means a full 12-month period of
continuous employment (including an approved leave of absence) beginning with the Executive’s date of hire by the Company. 
  
 Article 2 
 Lifetime Benefits 
  
 2.1  Normal Retirement Benefit.     Upon Termination of Employment on or after the Normal Retirement Age for reasons other than death, the Company shall pay to the
Executive the benefit described in this Section 2.1 in lieu of any other benefit under this Agreement. 
  
 2.1.1  Amount of Benefit.    The annual benefit under this Section 2.1 is the Benefit Amount. 
  
 2.1.2  Payment of Benefit.    The Company shall pay the annual benefit to the Executive in 12 equal monthly
installments commencing with the month following the Executive’s Normal Retirement Date, paying the annual benefit to the Executive for a period of twenty-one years. 
  
 2.2  Early Termination Benefit.    Upon Early Termination, the Company shall pay to the Executive the benefit described in this Section
2.2 in lieu 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 set forth in Schedule A for the Plan Year ending immediately prior to the Early Termination Date (except during the first Plan Year, the
benefit is the amount set forth for Plan Year 1), determined by multiplying the Accrual Balance set forth in Schedule A for the 

 
 2 

 Plan Year ending immediately prior to the Early Termination Date by the Vesting Percentage achieved at the Early
Termination Date. Schedule A shall be recalculated each Plan Year to reflect current Compensation based on actual salary and bonus. The resulting Benefit Amount shall be projected to normal retirement date with a 4% annual increase.] This benefit is
determined by calculating a two-hundred fifty-two month fixed annuity from the vested Accrual Balance, crediting interest on the unpaid balance at an annual rate of eight percent, compounded monthly. 
  
 2.2.2  Payment of Benefit.    The Company shall pay the annual benefit to the
Executive in 12 equal monthly installments commencing with the month following the Normal Retirement Age, paying the annual benefit to the Executive for a period of twenty-one years. 
  
 2.3  Disability Benefit.    If the Executive terminates employment due to Disability prior to Normal Retirement Age, the Company shall
pay to the Executive the benefit described in this Section 2.3 in lieu of any other benefit under this Agreement. 
  
 2.3.1  Amount of Benefit.    The benefit under this Section 2.3 is the Disability Lump-sum Benefit set forth in Schedule A for the Plan Year ending immediately prior to the date in which the
Termination of Employment occurs (except during the first Plan Year, the benefit is the amount set forth for Plan Year 1), determined by vesting the Executive in 100 percent of the Accrual Balance. Schedule A shall be recalculated each Plan Year to
reflect current Compensation based on actual salary and bonus. 
  
 2.3.2  Payment of
Benefit.    The Company shall pay the Accrual Balance to the Executive in a lump sum within 90 days following Termination of Employment.  
  
 2.4  Change of Control Benefit.    Upon Termination of Employment following a Change of Control, the Company shall pay to the Executive
the benefit described in this Section 2.4 in lieu of any other benefit under this Agreement. 
  
 2.4.1  Amount of Benefit.    The benefit under this Section 2.4 is the Change in Control Annual Benefit set forth in Schedule A for the Plan Year ending immediately prior to the date in which
Termination of Employment occurs (except during the first Plan Year, the benefit is the amount set forth for Plan Year 1), determined by vesting the Executive in the Normal Retirement Benefit described in Section 2.1.1 calculated as if the Executive
had remained employed by the Company until the Normal Retirement Age. 
  
 2.4.2  Payment
of Benefit.    The Company shall pay the annual benefit to the Executive in 12 equal monthly installments commencing with the month following the Normal Retirement Age, paying the annual benefit to the
Executive for a period of twenty-one years. 
  

 
 3 

 Article 3 
 Death Benefits

  
 3.1 Death During Active Service.    If the Executive dies while in the active
service of the Company, the Company shall pay to the Executive’s beneficiary the benefit described in this Section 3.1. This benefit shall be paid in lieu of the benefits under Article 2. 
  

3.1.1  Amount of Benefit.    The benefit under this Section 3.1 is the Accrual Balance set forth in Schedule A for
the Plan Year ending immediately prior to the Early Termination Date. 
  
 3.1.2  Payment
of Benefit.    The Company shall pay the benefit to the Executive’s beneficiary in a lump sum within 90 days following the Executive’s death. 
  
 3.2  Death During Payment of a Lifetime Benefit.    If the Executive dies after any Lifetime Benefit payments have commenced under this
Agreement but before receiving all such payments, the Company shall pay the remaining Accrual Balance at the time of the Executive’s death to the Executive’s beneficiary in a lump sum within 90 days of the Executive’s death.

  
 3.3  Death After Termination of Employment But Before Payment of a Lifetime Benefit
Commences.    If the Executive is entitled to a Lifetime Benefit under this Agreement, but dies prior to the commencement of said benefit payments, the Company shall pay the Accrual Balance at the time of the
Executive’s death to the Executive’s beneficiary in a lump sum within 90 days of the Executive’s death. 
  
 Article 4 
 Beneficiaries 
  
 4.1  Beneficiary Designations.    The Executive shall designate a beneficiary by filing a written designation with the Company. The Executive may revoke or modify
the designation at any time by filing a new designation. However, designations will only be effective if signed by the Executive and received by the Company during the Executive’s lifetime. 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. If the Executive dies without a valid beneficiary designation, all payments
shall be made to the Executive’s estate. 
  
 4.2  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 5

 General Limitations 
  

 
 4 

  
 5.1  Termination for
Cause.    Notwithstanding any provision of this Agreement to the contrary, the Company shall not pay any benefit under this Agreement if the Executive is subject to a Termination for Cause. 
  
 5.2  Suicide or Misstatement.    The Company shall not pay any benefit under this Agreement if the
Executive commits suicide within three years after the date of this Agreement. In addition, the Company shall not pay any benefit under this Agreement if the Executive has made any material misstatement of fact on an employment application or resume
provided to the Company, or on any application for any benefits provided by the Company to the Executive. 
  
 5.3  Competition After Termination of Employment.    The Company shall not pay any benefit under this Agreement if the Executive, without the prior written consent of the Company and within 2
years from the Executive’s Termination of Employment, engages in, becomes interested in, directly or indirectly, as a sole proprietor, as a partner in a partnership, or as a substantial shareholder in a corporation, or becomes associated with,
in the capacity of employee, director, officer, principal, agent, trustee or in any other capacity whatsoever, any enterprise conducted in the trading area (a 50 mile radius) of the business of the Company, which enterprise is, or may deemed to be,
competitive with any business carried on by the Company as of the date of termination of the Executive’s employment or retirement. This section shall not apply following a Change in Control. 
  

5.4  Solicitation After Termination of Employment.    The Company shall not pay any benefit under this Agreement if the Executive,
without the prior written consent of the Company and within 2 years from the Executive’s Termination of Employment, solicits any employee of the Company for the purpose of hiring such employee away from the Company or solicits any customer of
the Company that was a customer of the Company at or prior to the Executive’s Termination of Employment for the purpose of obtaining such customer’s business relationship in any manner that could be deemed to be competitive to the Company.
This section shall not apply following a Change in Control. 
  
 Article 6 
 Claims and Review Procedures 
  
 6.1  Claims
Procedure.    The Executive or beneficiary (“claimant”) who has not received benefits under the Plan that he or she believes should be paid shall make a claim for such benefits as follows: 
  
 6.1.1  Initiation – Written Claim.    The claimant initiates a claim by
submitting to the Company a written claim for the benefits. 
  
 6.1.2  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 

 
 5 

 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. 
  
 6.1.3  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: 
  
 (a)  The
specific reasons for the denial, 
 (b)  A reference to the specific provisions of the Plan on which the denial is based,

 (c)  A description of any additional information or material necessary for the claimant to perfect the claim and an explanation
of why it is needed, 
 (d)  An explanation of the Plan’s review procedures and the time limits applicable to such
procedures, and 
 (e)  A statement of the claimant’s right to bring a civil action under ERISA Section 502(a) following an
adverse benefit determination on review. 
  
 6.2  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: 
  
 6.2.1  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. 
  
 6.2.2  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. 
  
 6.2.3  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. 

 
 6.2.4  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. 

 
 6 

  
 6.2.5  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:

  
 (a)  The specific reasons for the denial, 
 (b)  A reference to the specific provisions of the Plan on which the denial is based, 
 (c)  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 
 (d)  A statement of the claimant’s right to bring a civil action under ERISA Section 502(a). 
  
 Article 7 
 Amendments and Termination 
  
 This Agreement may be amended only by a written agreement signed by the Company and the Executive. 
  
 Notwithstanding the previous paragraph in this Article 7, the Company may terminate this Agreement at any time. However, in no event shall this Agreement be terminated under this Article 7 without
payment to the Executive of 100% of the Accrual Balance set forth on Schedule A (recalculated as set forth in Section 2.2.1) for the end of the Plan Year in which termination of the Agreement occurs. 
  
 Article 8 
 Miscellaneous 

 
 8.1  Binding Effect.    This Agreement shall bind the Executive and the Company, and their
beneficiaries, survivors, executors, successors, administrators and transferees. 
  
 8.2  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 Company, nor does it interfere with the Company’s right to discharge the
Executive. It also does not require the Executive to remain an employee nor interfere with the Executive’s right to terminate employment at any time. 
  
 8.3  Non-Transferability.    Benefits under this Agreement cannot be sold, transferred, assigned, pledged, attached or encumbered in any manner.

  
 7.4  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 

 
 7 

 company. 
  
 8.5  Tax Withholding.    The Company shall withhold any taxes that are required to be withheld from the benefits provided under this Agreement. 
  
 8.6  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. 
  
 8.7  Unfunded Arrangement.    The Executive and 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 Executive’s
life is a general asset of the Company to which the Executive and beneficiary have no preferred or secured claim. 
  
 8.8  Entire Agreement.    This Agreement constitutes the entire agreement between the Company and the Executive as to the subject matter hereof. No rights are granted to the Executive by
virtue of this Agreement other than those specifically set forth herein. 
  
 8.9  Administration.    The Company shall have powers which are necessary to administer this Agreement, including but not limited to: 
  
 (a)  Establishing and revising the method of accounting for the Agreement; 
  
 (b)  Maintaining a record of benefit payments; 
  
 (c)  Establishing rules and prescribing any forms necessary or desirable to administer the Agreement; and 
  
 (d)  Interpreting the provisions of the Agreement. 
  
 8.10  Named Fiduciary.    The Company shall be the named fiduciary and plan administrator under this Agreement. It may delegate to
others certain aspects of the management and operational responsibilities including the employment of advisors and the delegation of ministerial duties to qualified individuals. 
  
 IN WITNESS WHEREOF, the Executive and the Company have signed this Agreement. 
  
 
	 EXECUTIVE:
 	  	 COMPANY:
 CAPITALBANK

 
  
  

 
 8 

  
 
	 /s/ RALPH W. BREWER
 
RALPH W. BREWER
 	 	  	 	 By /s/ WILLIAM G. STEVENS
 
Title     President and Chief Executive Officer 
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 BENEFICIARY DESIGNATION

  
 CAPITALBANK 
 SALARY
CONTINUATION AGREEMENT 
  
 RALPH W. BREWER 
  

 
 9 

  
 I designate the following as beneficiary of any death benefits under this Agreement: 

 
 Primary:  Christine Q. Brewer, wife 
  
 Contingent:  Children equally 
  

	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 Company. 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 /s/ Ralph W.
Brewer                                       
                      
  
 Date
October 17,
2002                                        
                             
  
 Received by the Company this 17th day of October, 2002. 
  
 By /s/ William G.
Stevens                                       
                                
  

Title Chief Executive
Officer                                       
                              
  
 CAPITALBANK 
 RALPH W. BREWER 
 Salary Continuation Agreement 
 Schedule A 

 
 10 

  
 
	 Plan
 Year

Ending
 
	  	 Benefit
 Level
 
	  	 Accrual
 Balance
 
	    	 Early Term.
 Vesting

	 	  	 Vested
 Accrual
 Balance
 
	  	 Early Termination
 Annual Benefit
 Payable at 62
 
	  	 Change of Control
 Annual Benefit
 Payable at 62
 
	  	 Disability Lump-sum
 Benefit
 Payable
 Immediately
 

	 Aug-03
 	  	 47,224
 	  	 4,815
 	    	 60
 	 %
 	  	 2,889
 	  	 2,594
 	  	 136,165
 	  	 4,815
 
	 Aug-04
 	  	 49,113
 	  	 10,240
 	    	 70
 	 %
 	  	 7,168
 	  	 5,943
 	  	 136,165
 	  	 10,240
 
	 Aug-05
 	  	 51,078
 	  	 16,355
 	    	 80
 	 %
 	  	 13,084
 	  	 10,017
 	  	 136,165
 	  	 16,355
 
	 Aug-06
 	  	 53,121
 	  	 23,252
 	    	 90
 	 %
 	  	 20,927
 	  	 14,793
 	  	 136,165
 	  	 23,252
 
	 Aug-07
 	  	 55,246
 	  	 31,033
 	    	 100
 	 %
 	  	 31,033
 	  	 20,256
 	  	 136,165
 	  	 31,033
 
	 Aug-08
 	  	 57,456
 	  	 39,816
 	    	 100
 	 %
 	  	 39,816
 	  	 23,998
 	  	 136,165
 	  	 39,816
 
	 Aug-09
 	  	 59,754
 	  	 49,737
 	    	 100
 	 %
 	  	 49,737
 	  	 27,679
 	  	 136,165
 	  	 49,737
 
	 Aug-10
 	  	 62,144
 	  	 60,949
 	    	 100
 	 %
 	  	 60,949
 	  	 31,320
 	  	 136,165
 	  	 60,949
 
	 Aug-11
 	  	 64,630
 	  	 73,629
 	    	 100
 	 %
 	  	 73,629
 	  	 34,936
 	  	 136,165
 	  	 73,629
 
	 Aug-12
 	  	 67,215
 	  	 87,979
 	    	 100
 	 %
 	  	 87,979
 	  	 38,545
 	  	 136,165
 	  	 87,979
 
	 Aug-13
 	  	 69,904
 	  	 104,233
 	    	 100
 	 %
 	  	 104,233
 	  	 42,167
 	  	 136,165
 	  	 104,233
 
	 Aug-14
 	  	 72,700
 	  	 122,661
 	    	 100
 	 %
 	  	 122,661
 	  	 45,819
 	  	 136,165
 	  	 122,661
 
	 Aug-15
 	  	 75,608
 	  	 143,574
 	    	 100
 	 %
 	  	 143,574
 	  	 49,520
 	  	 136,165
 	  	 143,574
 
	 Aug-16
 	  	 78,632
 	  	 167,336
 	    	 100
 	 %
 	  	 167,336
 	  	 53,293
 	  	 136,165
 	  	 167,336
 
	 Aug-17
 	  	 81,777
 	  	 194,369
 	    	 100
 	 %
 	  	 194,369
 	  	 57,158
 	  	 136,165
 	  	 194,369
 
	 Aug-18
 	  	 85,048
 	  	 225,172
 	    	 100
 	 %
 	  	 225,172
 	  	 61,142
 	  	 136,165
 	  	 225,172
 
	 Aug-19
 	  	 88,450
 	  	 260,333
 	    	 100
 	 %
 	  	 260,333
 	  	 65,272
 	  	 136,165
 	  	 260,333
 
	 Aug-20
 	  	 91,988
 	  	 300,551
 	    	 100
 	 %
 	  	 300,551
 	  	 69,580
 	  	 136,165
 	  	 300,551
 
	 Aug-21
 	  	 95,668
 	  	 346,667
 	    	 100
 	 %
 	  	 346,667
 	  	 74,106
 	  	 136,165
 	  	 346,667
 
	 Aug-22
 	  	 99,495
 	  	 399,705
 	    	 100
 	 %
 	  	 399,705
 	  	 78,895
 	  	 136,165
 	  	 399,705
 
	 Aug-23
 	  	 103,474
 	  	 460,929
 	    	 100
 	 %
 	  	 460,929
 	  	 84,007
 	  	 136,165
 	  	 460,929
 
	 Aug-24
 	  	 107,613
 	  	 531,935
 	    	 100
 	 %
 	  	 531,935
 	  	 89,519
 	  	 136,165
 	  	 531,935
 
	 Aug-25
 	  	 111,918
 	  	 614,789
 	    	 100
 	 %
 	  	 614,789
 	  	 95,533
 	  	 136,165
 	  	 614,789
 
	 Aug-26
 	  	 116,395
 	  	 712,276
 	    	 100
 	 %
 	  	 712,276
 	  	 102,199
 	  	 136,165
 	  	 712,276
 
	 Aug-27
 	  	 121,050
 	  	 828,372
 	    	 100
 	 %
 	  	 828,372
 	  	 109,748
 	  	 136,165
 	  	 828,372
 
	 Aug-28
 	  	 125,892
 	  	 969,310
 	    	 100
 	 %
 	  	 969,310
 	  	 118,578
 	  	 136,165
 	  	 969,310
 
	 Aug-29
 	  	 130,928
 	  	 1,146,665
 	    	 100
 	 %
 	  	 1,146,665
 	  	 129,524
 	  	 136,165
 	  	 1,146,665
 
	 Aug-30
 	  	 136,165
 	  	 1,392,291
 	    	 100
 	 %
 	  	 1,392,291
 	  	 145,216
 	  	 136,165
 	  	 1,392,291
 

 

 
 11

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