Document:

Exhibit 10(xlv)

 

SEPARATION AND RELEASE AGREEMENT 

 

This Separation and
Release Agreement (this “Agreement”) is made as of this 15th day of March, 2012, by and among Crescent Financial Bancshares,
Inc. (the “Company”), a Delaware corporation and successor to Crescent Financial Corporation, a North Carolina corporation;
Crescent State Bank (the “Bank”), a North Carolina-chartered bank (the Company and the Bank are collectively referred
to herein as the “Employer”); and Bruce W. Elder (the “Executive”), a resident of the State of North Carolina.

 

Introduction

 

Crescent Financial
Corporation, the Bank, and the Executive previously entered into that certain employment agreement dated February 23, 2011 (the
“Employment Agreement”). The Executive has continued to be employed by the Employer pursuant to the terms of the Employment
Agreement through the Termination Date, as set forth below. The parties now mutually desire to enter into this Agreement for the
purpose of terminating the Employment Agreement and the employment relationship between the parties on mutually satisfactory terms.

 

NOW, THEREFORE, in
consideration of the premises and terms and conditions contained herein and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

		1.	Termination of Employment Relationship. The Employment Agreement and the employment relationship
between the parties is hereby terminated effective as of the close of business on March 9, 2012 (the “Termination Date”).
The parties acknowledge that Executive’s termination from employment will result in a “separation
from service” as defined in Section 409A of the Internal Revenue Code and further acknowledge that the circumstances
of the termination of the employment relationship are contemplated by the terms of the Employment Agreement. Executive further
agrees that he has resigned from all of his positions as an officer of the Employer and any and all affiliates of the Employer
on or before the Termination Date.

 

		2.	Effective Date. This Agreement shall be effective as of the Termination Date.

 

		3.	Consideration. The Executive is required to enter into this Agreement pursuant to the express
terms of the Employment Agreement as a condition to receiving the lump sum cash payment equal to one (1) times the Executive’s
“annual compensation” (as defined in the Employment Agreement), less the $50,000 retention payment paid to the Executive
pursuant to Section 3(j) of the Employment Agreement. If Executive fails or refuses to execute this Agreement, or if Executive
revokes this Agreement as provided herein, Executive will not be entitled to the consideration set forth in this Section. Whether
or not Executive executes this Agreement, the Employer will pay Executive any and all wages for all hours worked up to and through
the Termination Date within the appropriate time frame required by applicable law. Federal, state and local tax withholdings may
be applied to the above consideration as determined by the Employer in its sole discretion consistent with applicable law. The
consideration will be paid, or commence, as applicable, in the time and manner contemplated by Section 5 of the Employment Agreement,
subject to Section 5 below.

 

		4.	Release.

 

		a.	In consideration of the amounts being paid to the Executive in Section 3 above, Executive, for
himself, his attorneys, heirs, executors, administrators, successors and assigns, fully, finally and forever releases and discharges
the Employer, all parent, subsidiary and/or affiliated companies, as well as its and their successors, assigns, officers, owners,
directors, agents, representatives, attorneys, and employees (all of whom are referred to throughout this Agreement as the “Employer”
or the “Releasees”), of and from all claims, demands, actions, causes of action, suits, damages, losses, and expenses,
of any and every nature whatsoever, as a result of actions or omissions occurring through the date Executive signs this Agreement.

 

    	

    	 

    

			Specifically included in this waiver and release are, among other things, any and all claims related
to any severance pay plan, any and all claims related to Executive’s employment and separation from employment or otherwise,
including without limitation: (1) Title VII of the Civil Rights Act of 1964, as amended by the Civil Rights Act of 1991 (race,
color, religion, sex, and national origin discrimination); (2) the Americans with Disabilities Act, as amended (disability discrimination);
(3) 42 U.S.C. § 1981 (discrimination); (4) the Age Discrimination in Employment Act (29 U.S.C. §§ 621-624);
(5) the Equal Pay Act ( 29 U.S.C. § 206(d)(1)); (6) Executive Order 11246 (race, color, religion, sex, and national
origin discrimination); (7) Executive Order 11141 (age discrimination); (8) Section 503 of the Rehabilitation Act of
1973 (disability discrimination); (9) the Employee Retirement Income Security Act of 1974, as amended (“ERISA”); (10)
the Occupational Safety and Health Act; (11) the Worker Adjustment and Retraining Notification (“WARN”) Act; (12) the
Family and Medical Leave Act; (13) the Ledbetter Fair Pay Act; and (14) other federal, state and local discrimination laws, including
those of the State of North Carolina.

 

			Executive further acknowledges that Executive is releasing, in addition to all other claims, any
and all claims based on any tort, whistle-blower, personal injury, defamation, invasion of privacy or wrongful discharge theory;
retaliatory discharge theory; any and all claims based on any oral, written or implied contract or on any contractual theory (including
the Employment Agreement); any claims based on a severance pay plan; and all claims based on any other federal, state or local
Constitution, regulation, law (statutory or common), or other legal theory, as well as any and all claims for punitive, compensatory,
and/or other damages, back pay, front pay, fringe benefits and attorneys’ fees, costs or expenses.

 

		b.	The release in this Agreement does not apply to (1) base salary accrued (whether or not paid)
up to the Termination Date; (2) the rights and obligations of the parties pursuant to the Endorsement Split Dollar Agreement between
the Bank and the Executive, dated October 1, 2003, as amended by that certain Amendment to Endorsement Split Dollar Agreement,
dated November 2, 2011; (3) subject to applicable law, all benefits and awards which pursuant to the terms of any employee benefit
plans were earned on or before the Termination Date; and (4) unreimbursed business expenses incurred prior to the Termination
Date for which Executive is entitled to reimbursement under the Employer’s policies. Finally, the above release does not
waive claims that Executive could make, if available, for unemployment or workers’ compensation or claims that cannot be
released by private agreement.

 

		5.	Advice of Counsel / Consideration and Revocation Periods. Executive hereby acknowledges
and agrees that this Agreement and the termination of Executive’s employment and all actions taken in connection therewith
are in compliance with the Age Discrimination in Employment Act and the Older Workers Benefit Protection Act and that the releases
set forth herein shall be applicable, without limitation, to any claims brought under these Acts.

 

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Executive acknowledges that he
has been and is hereby advised by the Employer to consult with an attorney in regard to this matter. Executive understands that
Executive is responsible for the costs of any such legal services incurred in connection with such consultation.

 

Executive further acknowledges
that Executive has been given more than twenty-one (21) days from the time that Executive receives this Agreement to consider whether
to sign it. Executive shall have seven (7) days from the date Executive signs this Agreement to revoke the Agreement. To
revoke, Executive must ensure that written notice is delivered to Scott Custer, Chief Executive Officer, Crescent Financial Bancshares,
Inc., 1005 High House Road, Cary, North Carolina 27513-3586 by the end of the day on the seventh calendar day after Executive signs
this Agreement. If Executive does not revoke this Agreement within seven (7) days of signing, this Agreement will become
final and binding on the day following such seven (7) day period.

 

		6.	Non-Admission. This Agreement shall in no way be construed as an admission by the Employer
that it has acted wrongfully with respect to Executive or any other person or that Executive has any rights whatsoever against
the Employer. The Employer specifically disclaims any liability to or wrongful acts against Executive or any other person on the
part of itself, its employees or its agents.

 

		7.	No Filing of Claims. Executive represents and warrants that Executive has not filed, nor
assigned to others the right to file, nor are there currently pending, any complaints, charges, claims, grievances, or lawsuits
against the Employer with any administrative, state, federal, or governmental entity or agency or with any court. Nothing herein
is intended to or shall preclude Executive from filing a complaint and/or charge with any appropriate federal, state, or local
government agency or cooperating with said agency in its investigation. Executive, however, shall not be entitled to receive any
relief or recovery in connection with any complaint or charge brought against the Employer, without regard as to who brought said
complaint or charge.

 

		8.	Non-Disparagement.

 

		a.	By the Executive. Executive promises that Executive will not, from and after the date of
execution of this Agreement, directly or indirectly, in any capacity or manner, make, cause, encourage or assist to be made any
statements, comments, or remarks, whether oral, in writing, or electronically transmitted, which might reasonably be considered
to be derogatory, defamatory or critical of, or negative towards, or to malign, harm, defame, disparage or damage the reputation
of any of the Releasees. Executive agrees not to make any statements about any of the Releasees to anyone (including without limitation
the press, any newspaper, magazine, radio station, television station, website, blog, or chat room) without the prior written consent
of the Employer. Nothing contained in this Section is intended to prevent Executive from (a) complying with the requirements and
policies of any federal or state agency, (b) cooperating with any investigation or request for information from any state or federal
government agency, or (c) testifying truthfully in any legal or administrative proceeding.

 

		b.	By the Employer. Employer promises that, from and after
the date of execution of this Agreement, the members of their respective Boards of Directors and all
executive officers of the Company and the Bank (collectively, the “Persons to be Advised”) will not, directly or indirectly,
in any capacity or manner, make, cause, encourage or assist to be made any statements, comments or remarks, whether oral, in writing,
or electronically transmitted, which might reasonably be considered to be derogatory, defamatory or critical of, or negative towards,
or to malign, harm, defame, disparage or damage the reputation of the Executive, nor will they authorize, condone, or encourage
any such disparagement from others. Employer will advise the Persons to be Advised that a non-disparagement agreement is in effect,
and will use reasonable efforts to enforce compliance with this Agreement. Employer shall also direct the Persons to be Advised
not to make, cause, encourage or assist to be made any statements, comments, or remarks, whether oral, in writing or electronically
transmitted, which might reasonably be considered to be derogatory, defamatory, or critical of, or negative towards, or to malign,
harm, defame, disparage or damage the reputation of the Executive. Notwithstanding the foregoing agreement, the parties hereto
recognize and acknowledge that the Employer will not be liable for unauthorized remarks by individuals employed by or otherwise
associated with the Employer, other than the Persons to be Advised and if the Persons to be Advised are required by any applicable
law, regulation, statute, subpoena, court order, or other compulsory process to disclose information related to the Executive’s
employment, such disclosure of truthful information shall not constitute a breach of this Agreement. Moreover, this Section 8.b.
shall not apply to any communications: (1) between the Employer and its independent public auditors; (2) necessary to comply fully
with all applicable requirements and policies of federal and state laws; (3) necessary to cooperate fully with any investigation
or request for information from any state or federal governmental agency, stock exchange, or regulatory organization; (4) necessary
in the course of preparing and filing appropriate tax returns or dealing with federal or state taxing authorities; or (5) made
in connection with any judicial or administrative proceeding or arbitration with respect to which such communications are relevant.

 

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		9.	Executive Acknowledgments.

 

		a.	Executive acknowledges and agrees and understands that the consideration described in Section 3
is not required by the Employer’s policies and procedures and that the consideration in Section 3 exceeds any and all pay
and benefits to which Executive already may have been entitled by contract or law, other than pursuant to the Employment Agreement,
and constitutes good, valuable and sufficient consideration for Executive’s covenants and agreements contained in this Agreement.
Executive further acknowledges that payment of the amounts identified in Section 3 of the Agreement shall fully satisfy the Employer’s
obligations to the Executive under the Employment Agreement.

 

		b.	Except as contemplated by Sections 3 and 4.b. above, Executive acknowledges, understands and agrees
that Executive has been paid in full for all hours that Executive has worked for the Employer and that Executive has been paid
any and all compensation or bonuses which have been earned by Executive through the date of execution of this Agreement.

 

		c.	Executive acknowledges and understands that, notwithstanding any provision of the Employment Agreement
to the contrary, the restrictive covenants under Sections 7, 8 and Subsections (b) and (c) of Section 9 of the Employment Agreement
and the enforcement provisions of Section 10 of the Employment Agreement shall remain in full force and effect.

 

		d.	Executive acknowledges, understands and agrees that Executive has been notified of Executive’s
rights under the Family and Medical Leave Act (FMLA) and state leave laws. Executive further acknowledges, understands and agrees
that Executive has not been denied any leave requested under the FMLA or applicable state leave laws and that, to the extent applicable,
Executive has been returned to Executive’s job, or an equivalent position, following any FMLA or state leave taken pursuant
to the FMLA or state laws.

 

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		e.	Executive acknowledges, understands and agrees that it is Executive’s obligation to make
a timely report, in accordance with the Employer’s policy and procedures, of any work-related injury or illness. Executive
further acknowledges, understands and agrees that Executive has reported to the Employer’s management personnel any work-related
injury or illness that occurred up to and including Executive’s last day of employment.

 

		f.	Executive acknowledges, understands, and agrees that Executive has no knowledge of any actions
or inactions by any of the Releasees or by Executive that Executive believes could possibly constitute a basis for a claimed violation
of any federal, state, or local law, any common law or any rule promulgated by an administrative body.

 

		g.	Executive acknowledges, understands and agrees that Executive is
responsible for the payment of any and all local, state, and/or federal taxes which may be attributable to the consideration set
forth in Section 3 and indemnifies and holds the Employer harmless from such tax consequences, including interest and/or penalties,
arising out of such payment to Executive. No representations have been or are made herein by or to any signatory to this Agreement
regarding the tax consequences of this Agreement.

 

		h.	Executive affirms that the only consideration for his signing this Agreement is that set forth
in Section 3 and that no other promise or agreement of any kind has been made to or with Executive by any person or entity to cause
Executive to execute this document, and that Executive fully understands the meaning and intent of this Agreement, including but
not limited to, its final and binding effect.

 

		10.	Cooperation. Executive agrees that he will fully cooperate with the Employer and make himself
available to assist the Employer in transitioning any duties or responsibilities to other employees or vendors, if necessary. Executive
further agrees that he will fully cooperate and consult with the Employer, answer questions for the Employer, and provide information
as needed by the Employer from time to time on a reasonable basis, including but not limited to cooperation in connection with
litigation, audits, investigations, claims, or personnel matters that arise or have arisen over actions or matters that occurred
or failed to occur during Executive’s employment with the Employer. Executive agrees to assist the Employer as a witness
or during any audit, investigation, or litigation (including depositions, affidavits and trial) if requested by the Employer. Executive
agrees to meet at reasonable times and places with the Employer’s representatives, agents or attorneys for purposes of preparing
for such activities. To the extent practicable and within the control of the Employer, the Employer will use reasonable efforts
to schedule the timing of Executive’s participation in any such activities in a reasonable manner to take into account Executive’s
then current employment, and will pay the reasonable documented out-of-pocket expenses that the Employer pre-approves and that
Executive incurs for travel required by the Employer with respect to those activities. 

 

		11.	Return of Property. Executive acknowledges, understands, and agrees that Executive will
turn over to Scott Custer, Chief Executive Officer, Crescent Financial Bancshares, Inc., 1005 High House
Road, Cary, North Carolina 27513-3586 all documents, files, memoranda, records, Employer confidential information, credit
cards, records, books, manuals, computer equipment, computer software, pagers, cellular phones, facsimile machines, PDAs and any
other equipment or documents, and all other physical or electronic property of similar type that Executive received from the Employer
and/or that Executive used in the course of his employment with the Employer and that are the property of the Employer. Executive
agrees that Executive will not delete, destroy, or erase any data stored on or associated with such property, including but not
limited to data stored on computers, phones, or other electronic devices. Executive further agrees to return to Mr. Custer any
and all hard copies of any documents which are the subject of a document preservation notice or other legal hold and to notify
Mr. Custer of the location of any electronic documents which are subject to a legal hold.

 

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		12.	Confidentiality of Agreement. Executive acknowledges, understands, and agrees that Executive
has kept, and will keep, the terms, amount, value, and nature of consideration paid to Executive and the existence of this Agreement
completely confidential and that Executive will not hereafter disclose any information concerning this Agreement to anyone other
than Executive’s immediate family, accountants, attorneys, and other professional representatives who will be informed of
and bound by this confidentiality clause. Executive agrees that Executive is responsible for informing these persons of the confidential
nature of this Agreement and that any breach of this confidentiality provision by any of these persons shall be deemed a breach
by Executive.

 

		13.	Agreement Binding; Governing Law; Severability. The Employer and Executive agree that the
terms of this Agreement shall be final and binding and that this Agreement shall be interpreted, enforced, and governed under the
laws of the State of North Carolina. The provisions of this Agreement can be severed and, if any part of this Agreement is found
to be unenforceable, the remainder of this Agreement will continue to be valid and effective.

 

		14.	Entire Agreement. This Agreement sets forth the entire agreement between the Employer and
Executive and fully supersedes any and all prior agreements or understandings, written and/or oral, between the Employer and Executive
pertaining to the subject matter of this Agreement. Notwithstanding the foregoing, this Agreement does not supersede the restrictive
covenants under Sections 7, 8 and Subsections (b) and (c) of Section 9 of the Employment Agreement and the enforcement provisions
of Section 10 of the Employment Agreement, which provisions shall remain in full force and effect, except as the parties may otherwise
hereafter mutually agree in writing.

 

		15.	Executive’s Attorneys Fees. Executive is solely responsible for the payment of any
fees incurred as the result of an attorney reviewing this Agreement on behalf of Executive.

 

		16.	Legally Binding Agreement. Executive understands and acknowledges that this Agreement contains
a full and final release of claims against the Employer and that Executive has agreed to its terms knowingly, voluntarily, and
without intimidation, coercion, or pressure.

 

This Agreement includes a release of all
known and unknown claims through the date of this Agreement. Executive should carefully consider all of its provisions before signing
it. Executive’s signature below indicates Executive’s understanding and agreement with all of the terms in this Agreement.

 

 

 

[SIGNATURES FOLLOW
ON NEXT PAGE]

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IN WITNESS WHEREOF,
Executive and the Employer have executed this Agreement effective as of the Effective Date. 

 

	 	CRESCENT FINANCIAL
    BANCSHARES, INC.:
	 	 	 
	 	 	 
	 	By:	/s/ Scott Custer
	 	Name:	Scott Custer
	 	Title:	Chief Executive Officer
	 	 	 
	 	 	 
	 	March
                                                                                                                                                      13,
                                                                                                                                                      2012

Date Signed

	 	 	 
	 	 	 
	 	CRESCENT STATE BANK:
	 	 	 
	 	 	 
	 	By:	/s/ Scott Custer
	 	Name:	Scott Custer
	 	Title:	Chief Executive Officer
	 	 	 
	 	 	 
	 	March 13,
2012

Date Signed

	 	 	 
	 	 	 
	 	EXECUTIVE:
	 	 
	 	 
	 	/s/ Bruce W. Elder

Bruce W. Elder

	 	 
	 	 
	 	March 15, 2012

Date Signed

    	7Exhibit 10(xlvi)

 

AFFILIATE SERVICES AGREEMENT

 

This Agreement, by
and between Piedmont Community Bank Holdings, Inc. a corporation incorporated under the laws of the State of Delaware (“Piedmont”),
Crescent Financial Bancshares, Inc., a corporation incorporated under the laws of the State of Delaware (“Crescent Financial”),
Crescent State Bank, a bank organized under the laws of the State of North Carolina (“CSB”), and VantageSouth Bank,
a bank organized under the laws of the State of North Carolina (“VantageSouth”), is made and executed to be effective
as of January 1, 2012.

 

WITNESSETH:

 

WHEREAS, Piedmont owns
approximately 88% of the outstanding common stock of Crescent Financial;

 

WHEREAS, CSB is a wholly-owned
subsidiary of Crescent Financial;

 

WHEREAS, VantageSouth
is a wholly-owned subsidiary of Piedmont;

 

WHEREAS, CSB, VantageSouth
(together, the “Banks”), Crescent Financial and Piedmont (each an “Affiliate” and, collectively, the “Affiliates”)
are affiliates of one another and subject to the applicable affiliate transaction laws, rules and regulations, including Sections
23A and 23B of the Federal Reserve Act (12 USC §371c, et seq. and 12 USC §1468(a), et seq.);

 

WHEREAS, rather than
attempt to duplicate areas of expertise pertaining to, for example, management, strategic planning, accounting, regulatory compliance,
credit underwriting and collection and data processing, it is more advantageous for the Banks to procure and/or provide certain
services to/from Piedmont and/or each other; and

 

WHEREAS, Piedmont,
Crescent Financial and the Banks desire, from time to time, to provide various services to each other and each Bank desires to
purchase or provide those services in compliance with Sections 23A and 23B of the Federal Reserve Act and applicable banking regulations
and policies;

 

WHEREAS, Piedmont,
Crescent Financial and the Banks are aware of the current written guidance provided by their respective bank regulatory authorities
with respect to the payment of management fees among the Affiliates and the management of third-party risk and seek to construct
this Agreement to ensure compliance with such guidance;

 

NOW, THEREFORE, in
consideration of the mutual promises of the parties set forth in this Agreement, the parties agree as follows:

 

1.Nature of
Services.

 

As more specifically
set forth on Schedule A, a copy of which is attached to and incorporated into this Agreement and may be modified from to
time with the mutual consent of all parties, Piedmont, Crescent Financial and either Bank may from time to time propose to provide,
for a pre-determined fee, a variety of services to each other, which may include, but are not necessarily limited to the following:

    	

    	 

    

		A.	Executive management;
	 	 	 

		B.	Accounting;
	 	 	 

		C.	Budgeting;
	 	 	 

		D.	Regulatory and tax reporting;
	 	 	 

		E.	General ledger reconciliation and accounts payable;
	 	 	 

		F.	Preparation of financial reports;
	 	 	 

		G.	Internal audit;
	 	 	 

		H.	Regulatory Compliance;
	 	 	 

		I.	Data processing and IT Services;
	 	 	 

		J.	Internal security;
	 	 	 

		K.	Investment portfolio management;
	 	 	 

		L.	Liquidity and ALCO Services;
	 	 	 

		M.	Loan servicing and collection;
	 	 	 

		N.	Credit Administration and loan operations;
	 	 	 

		O.	Marketing;
	 	 	 

		P.	Human Resources and payroll processing;
	 	 	 

		Q.	Branch Management;
	 	 	 

		R.	Deposit operations; and
	 	 	 

		S.	Electronic banking, including online banking, bill pay, ATM and Debit Card processing.
	 	 	 

The services
to be provided by the parties under this Agreement are not covered transactions, as that term is defined under Sections 23A and
23B of the Federal Reserve Act (which generally entail or contemplate loans, extensions of credit, purchases of assets or issuances
of guaranties by and between affiliates).

 

2.Fees.

 

(a)For the services listed
in Section 1 of this Agreement and more specifically set forth in Schedule A, each party agrees to pay monthly fees, as
calculated in Schedule A, as modified from time to time, to the party to this Agreement providing service not later than
the tenth day of the month following the month in which the service is provided to the receiving party.

 

(b) The fees on Schedule
A shall be adjusted to reflect actual expenses at least annually or more frequently if desired by either party to the arrangement.

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 To the extent any Affiliate
receives a third party invoice for products or services provided pursuant to this Agreement to one or more Affiliates, the Affiliate
receiving such invoice shall be entitled under this Agreement to invoice the benefited parties for reimbursement based on the
formulas for expenses set forth on Schedule A or on some other rational method that reflects the proportionality of benefits
received.

 

(c)The parties to this
Agreement believe that the fees, terms and conditions of this Agreement are at least as favorable to the Banks as those prevailing
at this time for comparable services provided by a non-affiliated company. It is the belief of the parties that in the absence
of any comparable transactions, the fees, terms and conditions are at least as favorable as those that in good faith would be offered
or could be obtained from a non-affiliated company.

 

(d) The parties to this
Agreement further believe that the formulas set forth in Schedule A to calculate the fees: (A) provide an equitable proration
of the administrative overhead of the Affiliates, (B) reflect that each Bank has received, and is expected to continue to receive,
a direct benefit from the services provided hereunder and (C) reflect that each of the Banks is being compensated for the fair
value of the services it has provided under this Agreement.

 

3.Compliance with Laws.

 

(a)In providing services
to either Bank under this Agreement, Piedmont and Crescent Financial will comply with all applicable laws, regulations, and regulatory
guidance. Piedmont and Crescent Financial shall reasonably cooperate with the Banks to provide reports and, during normal business
hours and upon reasonable advance notice, access to books and records as are necessary for Banks to evaluate compliance with applicable
laws, regulations, and regulatory guidance. Piedmont and Crescent Financial shall coordinate with each Bank to deliver any required
consumer and other public disclosures.

 

(b)The parties to this
Agreement shall be responsible for responding to any consumer or other complaints arising from its provision of services under
this Agreement. If Piedmont receives any such complaints, it shall forward copies of the same to the appropriate Bank along with
copies of any response thereto and shall keep such Bank reasonably informed of the status of any corresponding complaint responses.

 

4.Monitoring and Oversight.

 

Piedmont
shall conduct or cause to be conducted periodic internal audits of all services performed for the purpose of assessing compliance
with applicable laws, regulations, and regulatory guidance. Reports of such audits shall be delivered to the Banks promptly upon
completion. If any such audit reports are not timely delivered or are in the view of either Bank insufficient to assess compliance
performance, such Bank shall have the right to cause an audit of the same.

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5.Confidentiality.

 

Piedmont
and Crescent Financial shall appropriately secure and maintain and not disclose or cause to be disclosed any nonpublic data or
information obtained from the Banks or the Banks’ customers pursuant to this Agreement except as required by law or this
Agreement.

 

6.Business Continuity.

 

Piedmont
and Crescent Financial shall maintain business continuity plans for purposes of ensuring the uninterrupted provision of the services
covered by this Agreement in the event of a disruption to its operations resulting from natural or other causes. Such plans must
be reasonable and appropriate in the view of the Banks and subject to periodic audit by the Banks.

 

7.Use of Premises and
Resources.

 

In performing
services pursuant to this Agreement, Piedmont and Crescent Financial shall be permitted to utilize the Banks’ premises and
property as reasonably necessary and the Banks shall provide reasonable access to such resources.

 

8.Indemnity.

 

Piedmont,
Crescent Financial and each of the Banks mutually agree to indemnify, save, defend and hold harmless each other and each of their
directors, officers and employees (collectively, for the purpose of this paragraph, “Insiders”), from and against,
and shall reimburse each other and their Insiders with respect to, any and all damages, liabilities, losses, obligations, actions,
suits, disbursements, claims, deficiencies, penalties, interest, expenses, fines, assessments, charges and costs (including, without
limitation, reasonable attorneys’ and expert witness’ fees, costs of investigation and court costs) of every kind imposed
on, incurred by or asserted against Piedmont, Crescent Financial, or their Insiders (or any of them) or any of the Banks or their
Insiders (or any of them) in any way relating to or arising from or out of the party’s negligence in the provision of services
pursuant to this Agreement.

 

9.Term.

 

This Agreement
shall remain in effect until termination by any party upon 60 days’ written notice. Any provision of this Agreement, including
Schedule A, may be amended from time to time by mutual consent of the applicable parties without otherwise affecting any other
terms or conditions of this Agreement.

 

10.Entire Agreement.

 

This Agreement
contains the entire agreement of the parties, and no amendment shall be valid or binding unless in writing and signed by the parties
to be bound by the amendment.

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11.Severability.

 

In the event
any term or provision of this Agreement shall be declared to be prohibited, invalid or unenforceable by a court of competent jurisdiction
or any appropriate federal regulatory agency, such term or provision shall be ineffective only to the extent of such prohibition,
invalidity or unenforceability without invalidating or rendering unenforceable the remaining terms or provisions of this Agreement.

 

12.Notices.

 

Any notice,
demand or offer required by this Agreement to be made in writing between or among the parties hereto shall be sent by registered
or certified mail or otherwise hand delivered to the main office of each party to this Agreement, to the attention of the party’s
Chief Executive Officer or President.

 

13.Assignability.

 

This Agreement
may not be assigned in whole or in part by any party except with the prior written consent of the other parties.

 

14.Authority.

 

Each party
represents that it has full right, power and authority to enter into and carry out the terms of this Agreement.

 

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IN WITNESS WHEREOF,
the parties hereto have executed this Agreement by and through their respective officers as authorized, effective the day and year
written above.

 

	 	 	 
	 	Piedmont Community Bank Holdings, Inc.
	 	 	 
	 	By:	/s/ Scott Custer
	 	Name:	Scott Custer
	 	Title:	Chief Executive Officer
	 	 	 
	 	 	 
	 	Crescent Financial Bancshares, Inc.
	 	 	 
	 	By:	/s/ Lee Roberts
	 	Name:	Lee Roberts
	 	Title:	Chief Operating Officer
	 	 	 
	 	 	 
	 	Crescent State Bank
	 	 	 
	 	By:	/s/ Terry Earley
	 	Name:	Terry Earley
	 	Title:	Chief Financial Officer
	 	 	 
	 	VantageSouth Bank
	 	 	 
	 	By:	/s/ Steve Jones
	 	Name:	Steve Jones
	 	Title:	President

 

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Schedule A

 

For management and other services indicated
in Section 1 of the Agreement rendered to Piedmont by individuals employed by CSB, Piedmont shall pay to CSB a monthly fee calculated
as follows:

 

	
         

        Employee

         
	 	% of Monthly Compensation & Bonus*
	
        Director of Strategy & Corporate
Development

        
	 	75%
	Associate, Strategy & Corporate Development	 	50%
	Controller	 	50%
	
        Office Manager

        
	 	25%
	Chief Executive Officer	 	25%
	Chief Financial Officer	 	25%
	
        Chief Operating Officer

        
	 	25%
	Executive Assistant	 	25%
	Chief Information Officer	 	10%
	Principal Accounting Officer	 	10%
	 	 	 
	*	Based upon the estimated portion of CSB employee time per month dedicated to matters directly pertaining to Piedmont.
	 	 	 	 

 

For occupancy and equipment expenses associate
with the 3600 Glenwood Avenue office location, Piedmont shall pay to CSB an annual fee in the amount of $90,816.

 

For management and other services indicated
in Section 1 of the Agreement rendered to CSB by individuals employed by VantageSouth, CSB shall pay to VantageSouth a monthly
fee calculated as follows:

 

	
         

         

        Employee

         
	 	% of Monthly Compensation & Bonus*
	
        President

        Retail Banking President

         

         

         
	 	
        80%

        80%

         

	*	Based upon the estimated portion of VantageSouth employee time per month dedicated to matters directly pertaining to CSB.
	 	 	 	 

 

 

    	A-1

    	 

    

For management and other services indicated
in Section 1 of the Agreement rendered to VantageSouth by individuals employed by CSB, VantageSouth shall pay to CSB a monthly
fee calculated as follows:

 

	
         

         

        Employee

         
	 	% of Monthly Compensation & Bonus*
	
        Chief Credit Officer

        Executive Assistant

         
	 	
        20%

        20%

         

	*	Based upon the estimated portion of CSB employee time per month dedicated to matters directly pertaining to VantageSouth.
	 	 	 	 

 

 

For occupancy and equipment expenses associate
with the 3600 Glenwood Avenue office location, VantageSouth shall pay to CSB a monthly fee in the amount of $810.17.

    	A-2

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