Document:

Master Services Agreement

 Exhibit 10.29 
 MASTER SERVICES AGREEMENT 
 THIS MASTER SERVICES AGREEMENT (“Agreement”) is made
as of 29 June 2010 (“Effective Date”), between United BioSource Corporation with a place of business at 3822 Summit, Kansas City, Missouri 64111 (“UBC”) and Corcept Therapeutics Incorporated with its
office located at 149 Commonwealth Drive, Menlo Park, CA 94025 (“Client”), with each of UBC and Client being referred to herein individually as a “Party” or collectively as the “Parties”. 

WHEREAS, UBC is engaged in the business of providing its clients with specialized pharmaceutical services in connection with the design,
management and conduct of clinical trials and registries of pharmaceuticals and biologics, and employs personnel knowledgeable about and experienced in clinical research, statistics, computer programming, contracting, data processing and management,
project management, and drug development regulations (United States and international) (the “Services”); and 
 WHEREAS, Client
wishes to retain UBC on an as-needed basis to provide Risk Evaluation and Mitigation Services (REMS) services (“Projects”). 
 NOW,
THEREFORE, In consideration of the premises and of the mutual promises of each Party to the other herein contained, it is hereby mutually agreed as follows: 
 1. Services 
 1.1 The Services to be performed hereunder and accompanying timelines, budget
and payment terms shall be specified in separate Statements of Work (“SOWs”), which upon signature and execution by both Parties, shall be deemed incorporated herein. Each SOW shall constitute a separate agreement and shall stand alone
with respect to any other SOW entered into under this Agreement. In the event of a conflict between this Agreement and any SOW, the provisions of this Agreement will control, unless the SOW specifically acknowledges the conflict and expressly states
that the conflicting SOW controls. 
 1.2 Any changes to the Services shall be subject to mutual agreement by the Parties and the details of
such changes (e.g. budget impact, scope of services changes, etc.) shall be agreed upon and memorialized via an amendment to the applicable SOW. 
 1.3 UBC shall not subcontract or assign any Services to a non-affiliate without the prior written consent of Client provided, however, that UBC’s use of subcontractors is deemed approved when
UBC’s proposal for Services explicitly details the usage of subcontractors or affiliate and such proposal has been accepted by Client. Should any subcontract or assignment of the Services occur, UBC shall be solely responsible for ensuring that
any subcontractors or assignees are in compliance with the terms of this Agreement. 
 2. Compensation 

2.1 Compensation for the Services rendered pursuant to this Agreement shall be in accordance with the applicable SOW. All payments (excluding Disputed
Amounts as defined below) are due within thirty (30) days after receipt of invoice. As used herein, “Disputed Amounts” mean invoice amounts that are subject to a bona fide dispute raised by Client within [ *** ] days of Client’s
receipt of said invoice, which claim of 
  
  

Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as [ *** ]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 

 dispute may concern not only the accuracy of the charge itself, but also any claim of [ *** ] that relates
to the specific charges in the invoice. A Disputed Amount raised by Client in writing within such [ *** ] day period may be withheld from the specific invoice to which it relates. All Disputed Amounts that Client subsequently agrees in writing to
pay or that are required to be paid pursuant to a proper court order or award shall be paid within [ *** ] days from the date of such agreement or determination. 
 2.2 Unless otherwise indicated in the respective SOW, all budgets, invoices and payments, and SOWs under this Agreement will be in United States Dollars (“US$”). 

2.3 All payments to UBC under this Agreement shall be made either via electronic transfer to: 

United BioSource Corporation 
 C/o [ *** ] 
 [ *** ] 

[ *** ] 
 [ ***
] 
 or via check to: 

United BioSource Corporation 
 Lockbox [ *** ] 
 PO Box [ *** ] 

Baltimore, MD 21275 
 2.4 In
the event delay, postponement or suspension in the Services is requested by Client, and such delay, postponement or suspension has been continuing for [ *** ] days, Client shall pay UBC for all Services rendered through the date of such delay,
postponement or suspension plus reasonable costs directly arising out of such delay, postponement or suspension, if any. Upon notice of delay, postponement or suspension of the Services, UBC agrees to use its commercially reasonable efforts to
immediately curtail its efforts and make no subsequent commitments for expenditures under this Agreement. In the event of resumption of the Project, Client shall notify UBC, at which time UBC will resume Services under the terms of this Agreement.

 2.5 In the event the Services being performed under any SOW are terminated pursuant to Section 7 below, unless such termination is due
to UBC’s breach of any term or obligation hereunder, or other termination for cause, UBC shall be (a) compensated within [ *** ] days of termination for all fees and actual documented permitted costs incurred by UBC due as of the date of
termination but not yet paid pursuant to the applicable SOW and (b) reimbursed any and all reasonable uncancellable obligations regarding third parties that were incurred as of the date of termination in compliance with the applicable SOW. Any
funds held by UBC which shall be shown by Client to be unearned at the date of termination shall be returned to Client within [ *** ] days of termination of this Agreement. 
 3. Confidential Information 
 3.1 Both Parties shall treat any business strategies, plans
and procedures, proprietary information, scientific, medical and technical data and trade secrets, and other confidential information and materials of the other Party, whether written, electronic, visual or verbal, tangible or intangible, made
available, disclosed, or otherwise made known to it (“Confidential Information”) as the confidential and exclusive property of the other Party and shall not divulge or disclose the same to third parties except with the prior written
consent of the other Party. Further, each Party agrees that it will use the Confidential Information of 

  
  

[ *** ] Certain information on this page has been redacted and filed separately with the Securities and Exchange Commission. Confidential treatment has
been requested with respect to the omitted portions. 

 
the other Party only for purposes of performing its obligations under this Agreement, and neither Party will use such Confidential Information for any other purpose without the prior written
consent of the other Party. The provisions of this Section shall not apply to information which: a) is in, or later comes into, the public domain other than by breach of this Agreement or other fault of receiving Party; b) the receiving Party can
demonstrate was in its possession prior to receipt of the Confidential Information as evidenced by its written business records; c) is independently received by receiving Party from a third-party with the legal right to disclose it on a
non-confidential basis; d) is independently developed by receiving Party without reliance on or use of the Confidential Information of the disclosing Party, as evidenced by receiving Party’s written business records; or e) is required to be
disclosed by a court of competent jurisdiction, by any governmental agency having supervisory authority over the business of the disclosing Party, or by any administrative body or legislative body (including a committee thereof) with jurisdiction to
order receiving Party to divulge, disclose or make accessible such information; provided that, in the event that receiving Party is ordered by a court or other government agency to disclose any Confidential Information, receiving Party shall
(i) promptly notify disclosing Party of such order, (ii) at the written request of disclosing Party, diligently contest such order at the sole expense of disclosing Party as expenses occur, and (iii) at the written request of
disclosing Party, seek to obtain at the sole expense of disclosing Party such confidential treatment as may be available under applicable laws for any information disclosed under such order. 
 3.2 The obligations of receiving Party as to disclosure and confidentiality shall come into effect as of the Effective Date of this Agreement and shall continue in force and survive the termination or
expiration of this Agreement or the termination of the underlying SOW. 
 3.3 Confidential Information of disclosing Party will only be provided
by the receiving Party to the receiving Party’s employees, agents and consultants who have a need to know such information for purposes of this Agreement, provided that such employees, agents and consultants shall be bound by confidentiality
obligations at least as restrictive as those set forth herein. 
 3.4 Each Party agrees that, upon termination or expiration of this Agreement
or any underlying SOW, or, at the disclosing Party’s earlier request, the receiving Party will return to the disclosing Party or destroy, as directed by disclosing Party, (i) all Confidential Information provided by or on behalf of the
disclosing Party in tangible form, (ii) all Confidential Information of the disclosing Party received in soft-copy form (i.e., that was received by email or computer disk), and (iii) all copies, summaries, notes or derivatives thereof made
by or at the direction of the receiving Party. The foregoing notwithstanding, each Party may retain one (1) archival copy of the Confidential Information provided by the other Party in a limited access file for purposes of monitoring its
ongoing obligations hereunder and to comply with any applicable regulatory requirements (including, but not limited to, those set forth in ICH Guideline E6GCP § 4.9.5 and 21 CFR Section 312.57). 

3.5 Each Party agrees that a breach of this Agreement by the receiving Party may result in irreparable harm to disclosing Party for which money damages
would be inadequate. Consequently, in the event of a breach or threatened breach by receiving Party of this Agreement, disclosing Party shall be entitled, without the requirement of posting a bond or other security, to equitable relief, including
injunctive relief and specific performance. 
 4. Representations and Warranties 
 4.1 Each Party represents and warrants that it is a corporation or limited liability company duly organized, validly existing and in good standing under the laws of the state of its incorporation or
formation. 
 4.2 Each Party represents and warrants that it has the power and authority and legal right to enter into this Agreement and to
perform the obligations hereunder, including under each SOW, and that it has taken all necessary corporate action to authorize execution of this Agreement. 

 4.3 Each Party represents and warrants that all necessary consents, approvals and authorizations of
governmental authorities and other persons required to be obtained related to the performance of this Agreement have been obtained. 
 4.4 Each
Party represents and warrants that the execution and delivery of this Agreement will not conflict with or violate any requirement of any applicable laws or regulations, and do not conflict with or constitute a default under any contractual
obligation enforceable against it. 
 4.5 UBC represents and warrants that it shall perform the Services in a professional manner, in accordance
with the standards of care and diligence practiced by recognized organizations in performing services of a similar nature at the time the Services are performed, and in accordance with all applicable laws, rules, regulations and guidelines.

 4.6 UBC represents and warrants that it has the right to provide the Services herein and in the provision of such Services, it will not
infringe a valid patent, trade secret, copyright, or other intellectual property rights of a third-party. 
 4.7 Client represents and warrants
that it has the full legal right to provide all materials, biological or chemical specimens, and all associated intellectual property rights necessary for UBC to perform the Services pursuant to this Agreement or any SOW, (“Materials”) and
that the Materials do not infringe upon any patent, trademark, copyright or any trade secret or any other proprietary right of any third party or person. 
 4.8 Each Party certifies that neither it nor any of its officers, directors, employees or agents is currently subject to debarment action and none have been debarred or convicted of a crime, which could
lead to debarment, under the Generic Drug Enforcement Act of 1992. In the event that UBC or any of its directors, officers, employees, agents, subcontractors, consultants, affiliates or advisors under contract to perform services under a SOW with
UBC becomes debarred or receives notice of action or threat of action with respect to its debarment, UBC shall notify Client immediately. 
 4.9
UBC represents and warrants that entering into and performing Services under this Agreement will not interfere with or violate the terms of any other agreement, arrangement or understanding to which it is or was a Party, and that there exist no
restrictions or obligations to any third parties which will restrict its performance of Services under this Agreement. 
 4.10 During the term
of this Agreement, UBC shall maintain all materials and all other data obtained or generated by UBC in the course of providing the Services hereunder, including all computerized records and files. UBC shall cooperate with any reasonable request for
internal review or audit by Client and make available to Client for examination and duplication, during normal business hours and at mutually agreeable times, all documentation, data and information relating to a SOW or Project. 

5. Ownership and Use  
 5.1 All right,
title and interest in and to any data, materials, results, deliverables or other work arising, directly or indirectly, from the Services hereunder, whether prepared or performed by UBC, alone or in conjunction with others (“Work Product”)
shall be considered “work for hire” and shall be owned solely and exclusively by Client without any further payment owed. UBC hereby assigns to Client all rights UBC or its agents may have in any invention, technology, know-how or other
intellectual property relating to such Work Product. 
 5.2 Client acknowledges that as of the Effective Date of this Agreement, UBC possesses
certain inventions, processes, know-how, improvements, other intellectual properties and other assets, including but 

 not limited to, project management methods, procedures and techniques, procedure manuals, personnel data,
financial information, site listings, SOP’s, and computer technical expertise and technology, which have been independently developed by UBC without the benefit of any information provided by Client and which relate to UBC’s business or
operations (collectively “UBC’s Property”). Client and UBC agree that any UBC Property or improvements thereto which are used, improved, modified or developed by UBC under or during the term of this Agreement are the sole and
exclusive property of UBC. 
 6. Indemnification and Limitation of Liability 
 6.1 Client shall indemnify UBC, its directors, officers, employees, agents, representatives, subcontractors, affiliates and advisors, for any and all damages, costs, expenses and other liabilities,
including reasonable attorney’s fees and court costs, incurred in connection with any third-party claim, action or proceeding arising from (a) UBC’s connection to its obligations under this Agreement or any protocol related thereto,
(b) any harmful or otherwise unsafe effect of any Client drug product, (c) any breach by Client of this Agreement, or (d) any negligence, gross negligence or intentional misconduct of Client; provided however, that Client shall have
no obligation hereunder with respect to any claim, action or proceeding to the extent shown by a court of competent jurisdiction to have arisen from the negligence, gross negligence or intentional misconduct on the part of UBC or any of its
directors, officers, employees, agents, representatives, subcontractors, affiliates or advisors, or breach by UBC of any of its obligations under this Agreement. 
 6.2 UBC shall indemnify Client, its directors, officers, and employees for any and all damages, costs, expenses and other liabilities, including reasonable attorney’s fees and court costs, incurred
in connection with any third-party claim, action or proceeding to the extent shown by a court of competent jurisdiction to have arisen from the negligence or intentional misconduct of UBC or any of its directors, officers, employees, agents,
affiliates or representatives, or breach of UBC of any of its obligations under this Agreement. 
 6.3 Neither Party, together with their
affiliates and any of their respective directors, officers, employees, subcontractors, consultants or agents, shall have any liability of any type (including, but not limited to, contract, negligence, and tort liability), for any special,
incidental, indirect or consequential damages, including, but not limited to the loss of opportunity, loss of use, or loss of revenue or profit, in connection with or arising out of this Agreement, except as may otherwise arise under applicable
law.
 6.4 THE COLLECTIVE, AGGREGATE LIABILITY (INCLUDING, BUT NOT LIMITED TO, CONTRACT, NEGLIGENCE AND TORT LIABILITY) OF UBC, TOGETHER WITH
ITS DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS, UNDER THIS AGREEMENT SHALL NOT EXCEED [ *** ] FROM CLIENT PURSUANT TO THE SOW FOR THE SERVICES FROM WHICH SUCH LIABILITY AROSE. SUCH LIMITATION SHALL NOT LIMIT EITHER PARTY’S INDEMNIFICATION
OBLIGATIONS UNDER SECTIONS 6.1 AND 6.2 AND SHALL NOT APPLY IN THE CASES OF (A) A PARTY’S BREACH OF ITS CONFIDENTIALITY OBLIGATIONS UNDER SECTION 3 OR (B) THE WILLFUL MISCONDUCT OF EITHER PARTY. 

6.5 Any Party liable to provide indemnification hereunder shall be entitled, at its option, to control the defense and settlement of any claim on which
it is liable, provided that the indemnifying Party shall act reasonably and in good faith with respect to all matters relating to the settlement or disposition of the claim as the disposition or settlement relates to the Party being
indemnified. The indemnified Party shall reasonably cooperate in the investigation, defense and settlement of any claim for which indemnification is sought hereunder and shall provide prompt notice of any such claim or reasonably expected claim
to the 

  
  

[ *** ] Certain information on this page has been redacted and filed separately with the Securities and Exchange Commission. Confidential treatment has
been requested with respect to the omitted portions. 

 indemnifying Party. An indemnified Party shall have the right to retain its own separate legal counsel
at its own expense. 
 6.6 No settlement or compromise of a claim subject to the indemnification provision will be binding on either Party
without prior written consent. Such consent of settlement or compromise will not be unreasonably withheld. Neither Party will admit fault on behalf of the other Party with out the written approval of that Party. 

7. Term and Termination 
 7.1 This
Agreement shall be effective as of the Effective Date set forth above and shall terminate on the later of (a) the fourth (4) anniversary date from the Effective Date and (b) the completion of the Services being performed pursuant to a
SOW that is in effect on the foregoing described third anniversary date. The early termination of this Agreement for any reason shall automatically terminate any and all SOWs, unless the Parties otherwise agree in writing. In any event, each SOW is
and shall remain subject to the terms and conditions of this Agreement. 
 7.2 Either Party may terminate this Agreement (in which case all then
outstanding SOWs will terminate) and/or any specific SOW, for material breach by the other Party, upon [ *** ] days’ prior written notice if such breach is not cured within the notice period. Additionally, Client may terminate this Agreement
and/or any SOW, in whole or in part, without cause at any time during the term of the Agreement upon [ *** ] days’ prior written notice to UBC, and UBC may terminate this Agreement and/or any SOW, in whole or in part, without cause at any time
during the term of the Agreement upon [ *** ] days’ written notice to Client, and help Client facilitate an orderly transition 
 7.3 Upon
the termination or expiration of this Agreement and/or any SOW, UBC shall promptly deliver to Client all data and materials provided by Client to UBC for the conduct of the Services and any other documentation and/or Work Product produced as the
result of Services performed by UBC pursuant hereto. Further, UBC and Client shall cooperate with each other to provide for an orderly cessation of the Services provided by UBC hereunder and in accordance with all applicable laws, rules and
regulations, including those of the FDA. UBC may retain one (1) copy of the materials for archival purposes. 
 7.4 The rights and
obligations of UBC and Client, which by intent or meaning have validity beyond such termination or expiration shall survive the termination or expiration of this Agreement. 
 8. Publicity 
 Neither Party shall use the other’s name in marketing
materials and/or publicly release information pertaining to the details of the relationship, including but not limited to a press release, without the other Party’s prior written approval. 

9. Successors and Assigns 

UBC may not assign or otherwise transfer, without prior written consent of Client, which shall not be unreasonably withheld, its rights,
duties or obligations under this Agreement, in whole or in part, to any person or entity other than an affiliate of UBC. Any such attempted assignment or transfer by UBC without the written consent of Client shall be void. Subject to the foregoing
restrictions on assignment, this Agreement shall be binding upon UBC, assigns, and successors and shall inure to the benefit of Client, its successors and assigns. Upon written notice to UBC, Client may assign this Agreement and/or any SOW.

  
  

[ *** ] Certain information on this page has been redacted and filed separately with the Securities and Exchange Commission. Confidential treatment has
been requested with respect to the omitted portions. 

 The rights and obligations of Client under this Agreement shall inure to the benefit of and shall be binding
upon the successors and assign of Client. 
 10. Notice 
 Any notice, demand or communication required or permitted to be given by any provision of this Agreement shall be in writing, in the English language and shall be deemed to have been sufficiently given or
served for all purposes if (a) delivered personally; (b) deposited with a pre-paid messenger, express or air courier or similar courier; or (c) transmitted by facsimile. Notices shall be addressed to a Party at the Party’s
address or facsimile number set forth below. Notices shall be deemed to have been received (i) upon receipt in the case of personal delivery; (ii) three (3) days after being deposited in the case of messenger, express or air courier
or similar courier; and (iii) the day of receipt as evidenced by a machine generated confirmation statement in the case of transmittal by facsimile. 
  

			
	If to UBC:	  	United BioSource Corporation
		  	920 Harvest Drive, Suite 200
		  	Blue Bell, PA 19422
		  	Attn: Contracts Management
		  	Fax: 215.591.2890
		
	With a copy to:	  	United BioSource Corporation
		  	7501 Wisconsin Avenue, Suite 705
		  	Bethesda, MD 20814
		  	Attn: General Counsel
		  	Fax: 240.644.0421
		
	If to Client:	  	Corcept Therapeutics Incorporated
		  	149 Commonwealth Drive
		  	Menlo Park, CA 94025
		  	Attn: President
		  	Fax: 650.327.3218

 Either Party may change the individual
designated above or its contact information or both by written notice in accordance with this Section. 
 11. General Provisions

 11.1 If any provision of this Agreement is found by any court of competent jurisdiction to be invalid or unenforceable, the invalidity of such
provision shall not affect the other provisions of this Agreement, and all provisions not affected by such invalidity shall remain in full force and effect. 
 11.2 No waiver of any term, condition or obligation of this Agreement shall be valid unless made in writing and signed by the Party or Parties to which such performance is due. No waiver of any one or
several of the terms, conditions or obligations of this Agreement, and no partial waiver thereof, shall be construed as a waiver of any of the other terms, conditions or obligations of this Agreement. No failure or delay by either Party at any time
to enforce one or more of the terms, conditions or obligations of this Agreement shall constitute waiver of such terms, conditions or obligations or shall preclude such Party from requiring performance by the other Party at any later time.

 11.3 This Agreement, including SOWs (and all exhibits hereto and thereto), constitute the entire agreement between the Parties with respect
to the subject matter hereof and supersedes all prior agreements between the Parties, whether written or oral, relating to the same subject matter. No modifications, 

 
amendments or supplements to this Agreement shall be effective for any purpose unless set forth in writing and signed by both Parties. Any purchase order or other document issued by UBC or Client
is for administrative convenience only. In the event of any conflict between the provisions of this Agreement and any purchase order, as well as the introduction of new terms on any such purchase order, the provisions of this Agreement shall prevail
and govern. 
 11.4 The Parties hereto are independent contractors and nothing contained in this Agreement shall be construed to place them in
the relationship of partners, principal and agent, employer/employee or joint venturer. Both Parties agree that they shall neither have the power nor right to bind or obligate the other, nor shall either hold itself out as having such authority.
Neither Party’s employees, agents nor representatives are employees or agents of the other Party, nor entitled to any of the other Party’s benefits. Neither Party will be responsible for payment of the other Party’s workers’
compensation, disability benefits or unemployment insurance, nor will it be responsible for withholding or paying employment related taxes for the other Party or its employees. 
 11.5 In the event either Party shall be delayed or hindered in or prevented from the performance of any act required hereunder by reasons of strike, lockouts, restrictive government or judicial orders or
decrees, riots, insurrection, war, Acts of God, inclement weather or other similar reason or a cause beyond such Party’s control, then performance of such act shall be excused for the period of such delay. Any timelines affected by such force
majeure shall be extended for a period equal to that of the delay and any affected SOW shall be adjusted to reflect costs resulting from force majeure, provided that, should any delay continue for more than [ *** ] days, either Party may terminate
this Agreement immediately upon written notice and shall not be responsible for any termination expenses or increased costs. Notice of the start and stop of any such force majeure shall be provided to the other Party. 

11.6 This Agreement is governed by and will be construed in accordance with the laws of the State of New York and the laws of the United States of
America applicable therein. 
 11.7 Any dispute under this Agreement involving its interpretation or the obligations of a Party hereto shall be
resolved by binding arbitration [ *** ]. Arbitration shall be by a panel of three (3) arbitrators. All arbitrators are to be selected by mutual agreement of the Parties from a panel provided by the [ *** ]. The chairman shall be an attorney at
law knowledgeable in clinical research law, and the other arbitrators shall have a background or training in either pharmaceutical or clinical research law, clinical science, or pharmaceutical product liability law. In the event the Parties cannot
agree on the selection of any members of the arbitration panel, the [ *** ] shall have the power to appoint any and all such arbitrators. The arbitrators shall have the authority to permit discovery, to the extent deemed appropriate by the
arbitrators, upon request of a Party. The arbitrators shall have no power or authority to add to or detract from the agreements of the Parties. The arbitrators shall have the authority to grant injunctive relief in a form substantially similar to
that which would otherwise be granted by a court of law. The resulting arbitration award may be enforced in a court of competent jurisdiction. 

11.8 Each Party agrees that in the event of any dispute hereunder, such Party will reimburse the other Party for the reasonable attorneys’ fees,
costs and expenses incurred by such other Party in investigating, preparing and defending against claims made in such arbitration to the extent such other Party prevails on the merits with respect to all such claims. The tribunal which hears such
claims may determine which is the prevailing Party and the amount of such fees, costs and expenses to which such other Party is entitled. 

11.9 This Agreement may be executed in two counterparts, each of which shall be an original but all of which together shall constitute one and the same
instrument. 

  
  

[ *** ] Certain information on this page has been redacted and filed separately with the Securities and Exchange Commission. Confidential treatment has
been requested with respect to the omitted portions. 

 IN WITNESS THEREOF, this Agreement has been executed by the Parties hereto through
their duly authorized officers as of the Effective Date set forth above. 
  

			
	 Duly authorized on behalf of
 United BioSource Corporation
	 	 Duly
authorized on behalf of
 Corcept Therapeutics Incorporated

	 	 
	Signed: /s/ Patrick Lindsay	 	Signed: /s/ Joseph K. Belanoff, M.D.
	Name: Patrick Lindsay	 	Name: Joseph K. Belanoff, M.D.
	Title: Executive Vice President	 	Title: Chief Executive Officer
	Date: 29 June 2010	 	Date: July 6, 2010Severance and Change in Control Agreement

 Exhibit 10.08 
 STATE OF NORTH CAROLINA 

COUNTY OF HYDE 
 SEVERANCE AND 
 CHANGE
IN CONTROL AGREEMENT 
 THIS SEVERANCE
AND CHANGE IN CONTROL AGREEMENT (the “Agreement”) is entered into as of
the     14th     day of December, 2009 (the “Effective Date”), by and between THE EAST CAROLINA
BANK (“ECB”) and JAMES J. BURSON (“Executive”). 
 W I T N E S S E T H: 
 WHEREAS, Executive was employed by ECB as its Executive Vice President and Chief Revenue Officer effective on November 2, 2009, and in such position he shall be
expected to provide leadership and guidance in the growth and development of ECB’s business; and, 

WHEREAS, Executive’s experience and knowledge of banking operations is expected to be of
benefit to ECB in the continuation of its business, and, for that reason, ECB desires to retain Executive’s services as an officer and employee of ECB; 
 WHEREAS, in connection with Executive’s initial employment, ECB has agreed (1) to make payments or reimbursements to Executive for certain expenses
associated with the relocation of his residence, on the condition that Executive repay a portion of those payments and reimbursements to ECB if Executive’s employment with ECB terminates for certain reasons before December 31, 2011, and
(2) to make certain severance payments to Executive in the event of a termination of Executive’s employment with ECB under certain specified circumstances, and ECB and Executive desire to enter into this Agreement to set forth the terms
and conditions of those arrangements. 
 NOW, THEREFORE, in consideration of
the premises and mutual promises, covenants and conditions hereinafter set forth, and for other good and valuable considerations, the receipt and sufficiency of which hereby are acknowledged, ECB and Executive hereby agree as follows: 

1.    Effective Date of Agreement. This Agreement shall be effective on the Effective
Date set out above and shall remain in effect until terminated as provided herein. 

2.    Payment of Relocation Expenses. 

(a) In connection with Executive’s employment with ECB, ECB has agreed to pay to Executive, or to reimburse him for, certain
expenses associated with the relocation of his residence (collectively, the “Relocation Payments”), including: 

(i) commissions of up to 6% of the sales price of Executive’s residence located at 1412 Loniker Drive, Raleigh, North
Carolina, which are actually paid by Executive in connection with the sale of that residence; 
 (ii) expenses actually
paid by Executive on or before November 2, 2011, associated with moving his household goods and furnishings in connection with the initial relocation of his residence from Raleigh, North Carolina, to a location within a 75-mile radius of
ECB’s corporate offices in Engelhard, North Carolina, provided, however, that Executive shall obtain and submit to ECB estimates of charges for moving Executive’s household furnishings from three separate independent moving
companies, and the aggregate amount for which ECB shall be obligated to reimburse Executive shall not exceed the lesser of (A) $10,000 or (B) the average of those three separate estimates, plus $2,000; and 

 (iii) a lump sum payment of $12,000 which is intended to reimburse Executive for
temporary living expenses prior to the above relocation of his principal residence. 
 (b) Executive agrees that, in the
event his employment with ECB terminates or is terminated prior to December 31, 2011, other than as a result of his death or “Disability” (as that term is defined in Paragraph 6(b) below), or an involuntary termination of his
employment otherwise without “Cause” (as that term is defined in Paragraph 6(a) below), then Executive will be obligated to repay to ECB, within 30 days following the effective date of termination of Executive’s employment (the
“Termination Date”), a portion of the total Relocation Payments previously paid to him by ECB based on the following schedule: 
  

						
	 If Executive’s

Employment Terminates:
	  	Percentage
of
Total Relocation Payments
to be Repaid to ECB:
	 On or before 07/01/10
	  	 	 	100	%
	 After 07/01/10 but on or before 12/31/10
	  	 	 	75	%
	 After 12/31/10 but on or before 07/01/11
	  	 	 	50	%
	 After 07/01/11 but on or before 12/31/11
	  	 	 	25	%
	 After 12/31/11
	  	 	 	0	%

3.    Termination Without “Cause.” Subject to the limitations set forth herein and to
the right of Executive or ECB to terminate Executive’s employment at any time, and except to the extent otherwise provided in Paragraph 4 in the case of a “Change in Control” (as defined in that Paragraph), if, following the date of
this Agreement, and prior to November 2, 2012 (the “Severance Period”), ECB terminates Executive’s employment without “Cause” (as defined in Paragraph 6(a)) other than as a result of Executive’s
“Disability” (as defined in Paragraph 6(b) below), Executive shall be entitled to receive from ECB, and ECB shall be obligated to pay or cause to be paid to Executive, in a lump sum within 45 days following the Termination Date, an amount
equal to Executive’s base salary for six months calculated at Executive’s base salary rate in effect on the Termination Date; provided, however, that on November 2, 2012, and on November 2 of each year thereafter, and
without any further action by ECB or Executive, the Severance Period automatically shall be extended for one additional year unless ECB gives written notice to Executive not less than six months prior to any such date that the Severance Period will
not be so extended. Unless sooner terminated, following ECB’s giving of such written notice the Severance Period and ECB’s obligations under this Paragraph 3 will expire on the November 2 next following the giving of such notice.

 Notwithstanding anything in this Agreement to the contrary, to the extent that Executive is entitled to payments under
Paragraph 4(a)(i) below as a result of a termination of his employment without “Cause,” then those payments shall be in lieu of the payment provided for under this Paragraph 3, and in no event shall Executive be entitled to receive
payments under both Paragraphs. 
 4.    Change in Control. 

(a) Notwithstanding the provisions of Paragraph 3 to the contrary, and subject to the limitations set forth herein, if at the
effective time of, or any time within twelve months following, a “Change in Control” (as defined in Paragraph 4(b) below): 
 (i) ECB terminates Executive’s employment without “Cause” (as defined in Paragraph 6(a) below) other than as a result of Executive’s “Disability” (as defined in
Paragraph 6(b) below); or 

 (ii) a “Termination Event” (as defined in Paragraph 4(c) below)
occurs and, thereafter, Executive voluntarily terminates his own employment with ECB, following the giving of written notice to ECB and an opportunity for ECB to cure or remedy the Termination Event, in the manner described in Paragraph 4(e)
below; then (subject to the limitations set forth herein) Executive shall be entitled to receive from ECB, and ECB shall be obligated to pay or cause to be paid to Executive, an amount equal to 1.50 times Executive’s “base amount” as
that term is defined in Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), payable in eighteen equal monthly installments which shall begin within 45 days following the Termination Date and be made on the same
schedule as Executive’s base salary was being paid by ECB on the Termination Date.
 In addition, if Executive chooses to
exercise his rights to purchase continued individual health, dental or other insurance coverages under ECB’s group insurance plans pursuant to the Consolidated Omnibus Budget Reconciliation Act (“COBRA”), ECB shall reimburse Executive
for the cost of his continued individual insurance coverages for eighteen months or, if less, the maximum period during which such coverages are available to Executive under COBRA. 

Notwithstanding anything in this Agreement to the contrary, to the extent that Executive is entitled to payments under Paragraph 4(a)(i)
above as a result of a termination of his employment without “Cause,” then those payments shall be in lieu of the payment provided for under Paragraph 3 above, and in no event shall Executive be entitled to receive payments under both
Paragraphs. 
 (b) For purposes of this Agreement, but only to the extent consistent with the definition of the term
“change in control” under Section 409A of the Internal Revenue Code of 1986, as amended, and regulations promulgated thereunder, as applicable (“Section 409A”), a “Change in Control” shall be deemed to have
occurred if, after the Effective Date: 
 (i) any “Person” (as such term is defined in
Sections 3(a)(9) and 13(d)(3) of the Securities Exchange Act of 1934, as amended), directly or indirectly, acquires beneficial ownership of more than 50% of any class of voting securities entitled to vote in the election of directors of ECB or
ECB’s parent holding company, ECB Bancorp, Inc. (“Bancorp”), or in any manner acquires control of the election of a majority of the directors of ECB or Bancorp (excluding ECB or Bancorp themselves, any wholly-owned subsidiary of ECB
or Bancorp, or any employee benefit plan sponsored or maintained by ECB or Bancorp); 
 (ii) ECB or Bancorp
consolidates or merges with or into another corporation, or otherwise is reorganized, where ECB or Bancorp is not the resulting or surviving corporation in such transaction, unless the transaction involves only two or more of ECB, Bancorp and/or a
wholly-owned subsidiary of ECB or Bancorp; or 
 (iii) all or substantially all of ECB’s or Bancorp’s
assets are sold or otherwise transferred to or acquired by any other corporation, association or other person, entity, or group. 
 However, notwithstanding anything contained herein to the contrary, for purposes of this Agreement the term “Change in Control” shall not include a transaction approved by ECB’s or
Bancorp’s Board of Directors that results in ECB or Bancorp merging with, transferring its assets to, or becoming the subsidiary of, a corporation or entity newly formed at the direction of ECB’s or Bancorp’s Board of Directors for
the purpose of such transaction (including a corporation or entity so formed for the purpose of serving as ECB’s or Bancorp’s parent bank holding company), and in connection with which transaction the holders possessing,

 
directly or indirectly, a majority of the shares entitled to vote in the election of Bancorp’s directors immediately before the transaction or series of related transactions (other than
those who exercise statutory rights of dissent and appraisal) will hold, directly or indirectly, a majority of the shares entitled to vote in the election of directors of the surviving or transferee entity immediately after the transaction or series
of related transactions. Further, and notwithstanding the other provisions of this Agreement, a transaction or event shall not be considered a Change in Control if, prior to the consummation or occurrence of such transaction or event, ECB and
Executive agree in writing that the same shall not be treated as a Change in Control for purposes of this Agreement, in which event Executive shall be deemed to have forever waived all right to any payment under this Agreement as a result of that
transaction or event, but not to any future transaction or event. 
 (c) For purposes of this Agreement, but only to the
extent consistent with the definition of the term “good reason termination” under Section 409A, a “Termination Event” shall be deemed to have occurred if, without his express written consent: 

(i) Executive’s annual Base Salary rate is materially reduced below the annual rate in effect as of the effective date
of the Change in Control or as the same shall have been increased from time to time following such effective date; 

(ii) Executive’s life insurance, medical or hospitalization insurance, disability insurance, or similar plans or
benefits (including any retirement plan) being provided by ECB to Executive as of the effective date of the Change in Control are materially reduced in their level, scope, or coverage, or any such insurance, plans, or benefits are eliminated without
being replaced with substantially similar plans or benefits, unless such reduction or elimination applies proportionately to all salaried employees of ECB who participated in such plans or benefits prior to such Change in Control; 

(iii) Executive is transferred to a job location which is more than 75 miles (by most direct highway route) from his
principal work location at the effective date of the Change in Control; or 
 (iv) (A) if ECB continues
to exist as a separate entity following the Change in Control, Executive’s duties or responsibilities are materially reduced such that he no longer serves in the same position with ECB that he occupied immediately prior to the Change in
Control, or (B) if as a result of the Change in Control ECB no longer exists as a separate entity, Executive’s duties or responsibilities are materially reduced such that he is not designated as and does not serve as an executive
officer of ECB’s “Successor” (as that term is defined in Paragraph 6(c) below) or report directly to the Successor’s Chairman, President, or Chief Executive Officer. 

However, notwithstanding the other provisions of this Agreement, an event shall not be considered a Termination Event if, prior to the
occurrence of such event, ECB and Executive agree in writing that the same shall not be treated as a Termination Event for purposes of this Agreement, in which event Executive shall be deemed to have forever waived all right to any payment under
this Agreement as a result of that event, but not to any future such event. 
 (d) If, prior to the effective date of a
Change in Control, but following the date on which ECB’s or Bancorp’s Board of Directors takes action to approve an agreement (including any definitive agreement or an agreement in principle) relating to that Change in Control,
Executive’s employment is terminated by ECB without Cause, thereby obligating ECB to make a lump sum payment to Executive as described in Paragraph 3 above, and if that Change in Control later becomes effective, then the amount payable to
Executive with respect to the termination of his employment shall be as described in Paragraph 4(a)(i) above rather than the amount described in Paragraph 3; provided, however, that: 

 (i) if ECB previously shall have paid to Executive the lump sum payment described in
Paragraph 3, then the aggregate amount of the monthly payments for which ECB shall be obligated under Paragraph 4(a)(i) shall be reduced by the amount of that lump sum payment, and the remaining amount for which ECB shall be obligated shall be
payable as described in Paragraph 4(a); and, 
 (ii) if, following the termination of his employment, Executive
chose to exercise his rights to purchase continued individual health, dental or other insurance coverages under ECB’s group insurance plans pursuant to “COBRA,” ECB shall be obligated to reimburse Executive for that coverage as
provided above in Paragraph 4(a) above. 
 In no event will Executive be entitled to receive the payments called for under
both Paragraph 3 and Paragraph 4(a)(i), or an aggregate amount of payments in excess of the amount described in Paragraph 4(a). 

(e) In order to terminate his employment and become entitled to any payments under Section 4(a)(ii) of this Agreement, the
Termination Event which gives rise to his right to terminate must occur within twelve months following the date the Change in Control becomes effective, and Executive must, within 30 days following the occurrence of the Termination Event, give
written notice to ECB describing the Termination Event and Executive’s intention to terminate his employment (a “Notice of Termination Event”). Following its receipt of Executive’s Notice of Termination Event, ECB shall have a
period of 30 days within which it may cure or remedy the Termination Event (the “Cure Period”). A Termination Event shall be deemed to have occurred on the date such action or event giving rise to the Termination Event is implemented
or takes effect or, if later, on the date on which notice of the action or event is given to Executive.
 If Executive gives a
Notice of Termination Event to ECB and the Termination Event is not cured or remedied by ECB during the Cure Period, then, unless Executive previously has given written notice to ECB as provided below that he withdraws the Notice of Termination
Event and waives the Termination Event, the Termination Date shall be the earlier of (i) the expiration date of the Cure Period, or (ii) the date following Executive’s receipt of the written notice from ECB in which it
notifies Executive that it will not cure or remedy the Termination Event. If Executive does not give the required Notice of Termination Event within the 30-day period following the occurrence of a Termination Event as described above, or if
Executive gives the required Notice of Termination Event within the 30-day notice period and the Termination Event is cured or remedied by ECB within the Cure Period or, prior to the end of the Cure Period, Executive gives written notice to ECB that
he withdraws his Notice of Termination Event and waives the Termination Event, then Executive thereafter shall have no right to any payment hereunder with respect to that Termination Event, but he shall retain rights, if any, hereunder with respect
to any other or further Termination Event as to which such notice period has not expired. 

5.    Exclusions; Full Satisfaction. Notwithstanding anything contained herein to the
contrary, Executive and ECB expressly agree as follows. 
 (a) This Agreement provides for payments to Executive only in
the limited circumstances described in Paragraphs 2, 3 and 4 above and, except as specifically provided in those paragraphs, Executive shall have no rights, and ECB shall have no obligations, under this Agreement in any other circumstances or in
connection with any other terminations of Executive’s employment. 

 (b) Executive’s employment with ECB is on an “at will” basis and this
Agreement does not constitute an employment contract or an agreement by ECB to employ Executive for any particular period of time or in any particular capacity. Nothing in this Agreement is intended or should be interpreted to confer upon Executive
the right to continue in the employ of ECB or to interfere with or restrict in any way the right of ECB to discharge Executive or terminate his employment at any time or for any reason whatsoever, with or without Cause, and without any obligation or
liability to Executive except as herein provided, it being the intent of the parties hereto only to provide for payment of the severance benefits specified herein in the event of the termination of Executive’s employment with ECB under the
limited circumstances described in Paragraphs 3 and 4 of this Agreement. 
 (c) Except with respect to Executive’s
rights, if any, expressly provided for in this Agreement and any separate written agreement pertaining to a payment or benefit to be provided by ECB (including an agreement providing for any form of stock-based compensation), the payments to
Executive provided for in this Agreement shall satisfy and discharge in full all of Executive’s claims against ECB arising out of any termination of Executive’s employment. 

6.    Other Definitions. 

(a) For purposes of this Agreement, ECB shall have “Cause” to terminate Executive’s employment if: 

(i) a determination is made by ECB in good faith that Executive: (A) has breached in any material respect any of
the terms or conditions of this Agreement, any employment agreement under which Executive is bound with ECB from time to time, or of any officer or employee codes of conduct, or ethics, employment or other policies of ECB that apply to Executive or
to ECB’s officers and/or employees generally from time to time, (B) fails in any material respect to perform or discharge his duties or responsibilities of employment in a manner that is competent and reasonably satisfactory to
ECB’s Board of Directors, and such failure under this clause is not corrected or cured by Executive to ECB’s reasonable satisfaction (which shall not be unreasonably withheld by ECB) within 30 days following written notice thereof to
Executive), or (C) is engaging or has engaged in willful misconduct or conduct which is detrimental in any material respect to the business or business prospects of ECB or Bancorp or which has had or likely will have an adverse effect on
ECB’s or Bancorp’s business or reputation; 
 (ii) Executive materially violates any applicable federal
or state law, or any applicable rule, regulation, order, or statement of policy promulgated by any governmental agency or authority having jurisdiction over ECB or Bancorp (a “Regulatory Authority,” including but not limited to the North
Carolina Commissioner of Banks, the Federal Deposit Insurance Corporation, the Federal Reserve Board, the Securities and Exchange Commissioner, or any other regulator), that results from Executive’s negligence, willful misconduct, or
intentional disregard of such law, rule, regulation, order, or policy statement and results in any substantial damage, monetary or otherwise, to ECB or Bancorp to their reputation; 

(iii) during the course of Executive’s employment with or service as an officer of ECB or Bancorp, Executive commits an
act of fraud, embezzlement, theft, or proven personal dishonesty (whether or not such act or charge results in criminal indictment, charges, prosecution, or conviction); 
 (iv) Executive is convicted of any felony or any criminal offense involving dishonesty or breach of trust, there occurs any event described in Section 19 of the Federal Deposit Insurance
Act or any other event or circumstance which disqualifies Executive from serving as an employee, officer or director of, or a party affiliated with, ECB or Bancorp; or, 

 
Executive becomes unacceptable to, or is removed, suspended, or prohibited from participating in the conduct of ECB’s or Bancorp’s affairs (or if proceedings for that purpose are
commenced), by any Regulatory Authority; or 
 (v) Executive is excluded by the carrier or underwriter from
coverage under ECB’s and Bancorp’s then current “blanket bond” or other fidelity bond or insurance policy covering its or their employees, officers, and directors, or there occurs any event that ECB believes, in good faith, will
result in Executive being excluded from such coverage, or having coverage limited as to Executive as compared to other covered employees, officers or directors, pursuant to the terms and conditions of such “blanket bond” or other fidelity
bond or insurance policy. 
 (b) “Disability” shall mean a mental or physical impairment that, in the sole
opinion of ECB’s Board of Directors, renders Executive unable to perform the essential functions of his employment for a period of 90 days or more. 
 (c) “Successor” refers to any Person or entity (corporate or otherwise) into which ECB (or any such Successor) shall be merged or consolidated or to which all or substantially all
ECB’s (or any such Successor’s) assets shall be transferred in any manner. For purposes of this Agreement, all references to ECB shall include any such Successor to ECB which shall have assumed and become liable for ECB’s obligations
hereunder (whether such assumption is by agreement, operation of law, or otherwise).

7.    Section 280G Matters. It is the intent of the parties hereto that all payments made
pursuant to this Agreement be deductible by ECB for federal income tax purposes to the maximum extent permissible under applicable law and regulations, and that no such payments result in the imposition of an excise tax on Executive. For that
purpose, and notwithstanding anything contained in this Agreement to the contrary, Executive and ECB agree as follows. 
 (a)
Modification or Reduction of “Parachute Payments.” If the Compensation Committee of ECB’s Board of Directors, based upon the advice of ECB’s independent certified public accountants or legal counsel, reasonably
believes that any payments to be made to or for the benefit of Executive under this Agreement on account of a Change in Control (whether separately or in combination with other payments or benefits to be made or provided to or for the benefit of
Executive pursuant to any other agreements or arrangements) would be deemed to be “parachute payments” as that term is defined in Section 280G(b)(2)(A) of the Code, without regard to Section 280G(e) of the Code, then the payments
provided for under this Agreement or any such other payments or benefits may be modified or reduced in amount by ECB to the extent (but only to the extent) which, based on the advice of ECB’s independent certified public accountants or legal
counsel, the Compensation Committee in good faith deems to be necessary to avoid the imposition of excise taxes on Executive under Section 4999 of the Code and the disallowance of a deduction to ECB under Section 280G(a) of the Code.

 In the event the amounts of any payments or benefits are required to be reduced pursuant to this Paragraph 7, the last
payments in time shall be reduced first, and if any payments to be reduced otherwise would be made at the same time, payments or benefits other than cash shall be reduced first. 

(b) Survival of Covenants. Executive’s covenants and agreements and ECB’s rights provided for in this
Paragraph 7 shall survive and remain fully in effect following any termination of Executive’s employment with ECB. 

 8.    Section 409A Matters. Executive and ECB
intend for this Agreement to comply with Section 409A. For that purpose, and notwithstanding anything contained in this Agreement to the contrary, Executive and ECB agree as follows. 

(a) Interpretation of Defined Terms. The terms used in this Agreement shall be defined and interpreted in a manner
that is consistent with Section 409A and, in the event of any ambiguity in any of the terms or provisions of this Agreement, those terms or provisions shall be interpreted in a manner so as to comply with the applicable requirements of
Section 409A. 
 (b) Treatment of Installment Payments. To the extent Executive is entitled to a
series of installment payments under the provisions of this Agreement, such series of installment payments shall be treated as a series of separate payments for purposes of Section 409A, as applicable. 

(c) Requirement of “Separation from Service;” Payments to “Specified Employees.” In the case of
a payment upon the termination of Executive’s employment, no payment shall be made under this Agreement unless the termination of employment constitutes a “separation from service” under Section 409A, and, if ECB determines that
Executive is a “specified employee” within the meaning of Section 409A on the date of any such separation from service (the “Separation from Service Date”), then (i) any installment payments (including
reimbursement for expenses) which ECB is obligated to pay to Executive under this Agreement that would result in a tax, interest, and/or penalties under Section 409A if paid during the first six months after the Separation from Service
Date shall be delayed and accumulated by ECB and the accumulated amount shall be payable to Executive in a lump sum on the date that is six months and one week after the Separation from Service Date, with any additional installment payments for
which ECB is obligated after that six-month period being payable on the same schedule as Executive’s Base Salary was being paid by ECB on the Separation from Service Date, and (ii) any lump-sum payment (including reimbursement for
expenses) which ECB is obligated to pay to Executive under this Agreement that would result in a tax, interest, and/or penalties under Section 409A if paid during the first six months after the Separation from Service Date shall be delayed and
be payable to Executive in a lump sum on the date that is six months and one week after the Separation from Service Date. 

(d) Expense Reimbursement. To the extent Executive is entitled to the reimbursement of any expenses or in-kind
benefits under the provisions of this Agreement that is subject to Section 409A, the right to such reimbursement or benefit shall not be subject to exchange for another benefit and such reimbursement shall be paid by ECB no later than two and
one-half months after the year in which the expense is incurred, except as otherwise provided in Section 409A. 
 (e)
Authority to Modify Agreement. This Agreement may be amended at any time by ECB, without Executive’s consent, to the extent necessary to comply with, and avoid the imposition on Executive of an excise tax under,
Section 409A; provided, however, that in the event the terms of this Agreement, any payments made hereunder, or any action or inaction by ECB with respect thereto, shall be deemed not to comply with Section 409A, ECB shall not
be liable to Executive for any income or excise taxes or any other amounts imposed on or payable by Executive with respect to any payments made hereunder or for any actions, decisions or determinations made by ECB in good faith.

 (f) Survival of Covenants. Executive’s covenants and agreements and ECB’s rights provided
for in this Paragraph 8 shall survive and remain fully in effect following any termination of Executive’s employment with ECB. 

 9.    Compliance with CPP Rules. Executive
understands and agrees that Bancorp is a participant in the U.S. Department of the Treasury’s TARP Capital Purchase Program (the “CPP”), and, as a result, ECB and Bancorp are bound by applicable law, rules, regulations and guidance
restricting or pertaining to the compensation of officers and employees of CPP participants which are now in effect or may later be established (including but not limited to the rules and guidance currently set forth in interim final rules appearing
at 31 C.F.R. Part 30 promulgated under Sections 101(a)(1), 101(c)(5) and 111 of the Emergency Economic Stabilization Act of 2008, as amended by the American Recovery and Reinvestment Act of 2009) (collectively, the “CPP Rules”). Executive
and ECB intend for this Agreement and payments and benefits payable to Executive hereunder to comply with the CPP Rules and, for that purpose, and notwithstanding anything contained in this Agreement to the contrary, Executive and ECB agree as
follows. 
 (a) Prohibited Payments; Authority to Modify Agreement. In no event shall ECB have any
obligation to make any payment, or provide any compensation (whether in the form of cash, stock or otherwise) or other benefit to Executive (including without limitation any “Golden Parachute Payment,” as that term is defined in the CPP
Rules, or any other payment or benefit payable in connection with or following any termination of Executive’s employment), to the extent that ECB’s Board of Directors or its Compensation Committee determines, in its sole judgment, that
such payment, compensation or other benefit would violate or be prohibited by or inconsistent with the CPP Rules. 
 If, in the
sole judgment of ECB’s Board of Directors or its Compensation Committee, any provision of this Agreement, or any such payment, compensation or benefit which ECB is or becomes obligated to pay or provide to Executive under this Agreement, would
violate or be prohibited by or inconsistent with the CPP Rules, then the Board or that Committee shall have the authority, exercisable unilaterally and without the Executive’s consent, to modify any or all of the provisions of this Agreement,
or to reduce or eliminate any such payment, compensation or other benefit, to the extent the Board or Committee, in its sole judgment, considers necessary in order to comply with the CPP Rules. 

The Board’s or Committee’s power to modify this Agreement shall be effective for so long as ECB and Bancorp are subject to the
CPP Rules. The Board’s or Committee’s action modifying this Agreement may, but need not, be in the form of a written amendment or supplement to this Agreement, or in the form of a duly adopted resolution.

(b) Recovery of Bonus and Incentive Compensation. If, in the sole judgment of ECB’s Board of Directors or
its Compensation Committee, any payment or benefit paid or provided to Executive under this Agreement that the Board or Committee deems to be a “Bonus” or “Incentive Compensation” (as those terms are defined in the CPP Rules) was
based on materially inaccurate financial statements or on any other materially inaccurate performance criteria, that payment or benefit shall not have been earned by Executive, shall be subject to recovery by ECB, and shall be repaid by Executive to
ECB within 15 days after written demand by ECB. The Executive’s repayment obligations shall survive termination of this Agreement and shall be effective for as long as ECB and Bancorp are subject to applicable CPP Rules.

(c) Waiver. Executive hereby acknowledges and agrees that, for as long as Bancorp is a participant in
the CPP, ECB and Bancorp will be bound by the CPP Rules, and any implementing guidance issued by the U.S. Treasury or other federal agencies. Executive hereby grants the waiver required by the U.S. Treasury to release the United States and ECB
and Bancorp from any claims that Executive might otherwise have as a result of any modification of 

 
this Agreement as provided above, and agrees to execute such other documents as ECB, Bancorp or the U.S. Treasury may require to evidence this waiver. 

(d) Survival of Covenants. Executive’s covenants and agreements and ECB’s rights provided for in this
Paragraph 9 shall survive and remain fully in effect following any termination of Executive’s employment with ECB. 

10.    Additional Regulatory Requirements. Notwithstanding anything contained in this
Agreement to the contrary, and in addition to the provisions of Paragraphs 7, 8 and 9 above, it is understood and agreed that ECB (or any of its successors in interest) shall not be required to make any payment or take any action under this
Agreement if: 
 (a) it is declared by any Regulatory Authority to be insolvent, in default or operating in an unsafe or
unsound manner; or if 
 (b) in the opinion of counsel to ECB, such payment or action (i) would be prohibited
by or would violate any provision of state or federal law applicable to ECB or Bancorp, including without limitation the Federal Deposit Insurance Act, as now in effect or hereafter amended, (ii) would be prohibited by or would violate
any applicable rules, regulations, orders or statements of policy, whether now existing or hereafter promulgated, of any Regulatory Authority, or (iii) otherwise would be prohibited by any Regulatory Authority. 

11.    Termination of Agreement. Except as provided in Paragraphs 7, 8, 9 and 10 above,
this Agreement automatically shall terminate and become null and void upon any termination of Executive’s employment with ECB; provided, however, that, in the case of a termination of Executive’s employment which results in an
obligation on the part of ECB to make payments as provided for under Paragraphs 3 or 4(a) above, or an obligation on the part of Executive to reimburse ECB for a portion of the Relocation Payments as provided in Paragraph 2, those obligations shall
remain in effect until fully discharged by payment; and, following any such termination of this Agreement, it shall be of no further force or effect and Executive shall have no further rights hereunder. 

12.    Taxes; Required Withholdings. Executive shall be solely responsible for any and
all federal, state and local income and other taxes (including excise taxes) owed on account of his or her receipt of the payments or benefits provided for in this Agreement. To the extent that ECB reasonably believes itself obligated to do so, it
may withhold any such taxes from payments made to Executive hereunder. If the amount of any such taxes that ECB believes itself required to withhold and transmit to any governmental or taxing authority exceeds the amount of any payments then due and
payable under this Agreement and from which such withholding may be made, then ECB may require that Executive pay to it the full amount of any such taxes then due and, if Executive shall fail to make such payment, ECB may itself advance and pay the
amount of those taxes and recover any such payments by offset against future payments due under this Agreement. 

13.    Successors and Assigns. This Agreement shall inure to the benefit of and be
binding upon ECB and any corporate or other Successor to ECB, and Executive’s heirs, successors and assigns. However, notwithstanding anything contained herein to the contrary, neither Executive nor Executive’s estate or any designated
beneficiary shall have any right to sell, assign, transfer or otherwise convey the right to receive any payment under this Agreement. To the extent permitted by law, no benefits payable under this Agreement shall be subject to the claim of any
creditor of Executive, Executive’s estate or any designated beneficiary, or to any legal process by any creditor of any such person. 

 14.    Modification; Waiver;
Amendments. Except as otherwise provided in Paragraphs 7, 8, 9 or 10 above, no provision of this Agreement may be modified, waived, or discharged unless such waiver, modification, or discharge is agreed to in writing and signed by
the parties hereto. No waiver by either party hereto, at any time, of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party, shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No amendments or additions to this Agreement shall be binding unless in writing and signed by both parties, except as herein otherwise provided.

 15.    Applicable Law. The parties hereto agree that without regard to principles of
conflicts of laws, the internal laws of the State of North Carolina shall govern and control the validity, interpretation, performance and enforcement of this Agreement. 
 16.    Severability. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the
validity or enforceability of the other provisions hereof. 
 17.    Headings. The
section and paragraph headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 
 18.    Notices. Except as otherwise may be provided herein, all notices, claims, certificates, requests, demands and other communications hereunder shall be in
writing and shall be deemed to have been duly given when hand delivered or sent by facsimile transmission by one party to the other, or when deposited by one party with the United States Postal Service, postage prepaid, and addressed to the other
party at his or its designated address listed below, or at such other address as such other party shall have designated in a written notice given as provided in this Paragraph: 

 

			
	If to ECB:	  	If to Executive:
		
	 The East Carolina Bank
 35080 U.S. Highway 264
 Engelhard, NC 27824

Attention: Compensation Committee
	  	 James J. Burson
 The East Carolina Bank
 35080 U.S. Highway 264

Engelhard, NC 27824

 19.    Counterparts. This Agreement may be executed in any number of counterparts, and each such counterpart hereof shall be deemed an original instrument, but all
such counterparts together shall constitute but one agreement. 
 20.    Entire
Agreement. This Agreement contains the entire understanding and agreement of the parties, and there are no agreements, promises, warranties, covenants or undertakings other than those expressly set forth or referred to herein. 

 IN WITNESS WHEREOF, the
parties have executed this Agreement on the day and year first hereinabove written. 
  

			
	THE EAST CAROLINA BANK
		
	By:	 	/s/ A. Dwight Utz
	President and Chief Executive Officer

  

			
	EXECUTIVE
		
	 /s/ James J. Burson
	 	(SEAL)
	     James J. Burson	 	

 ND: 4841-5918-4904, v. 1 

 AMENDMENT NO. 1 TO 

SEVERANCE AND CHANGE IN CONTROL AGREEMENT

 BETWEEN JAMES J. BURSON AND THE
EAST CAROLINA BANK 
 DATED DECEMBER 14,
2009 
 THIS AMENDMENT NO. 1 TO SEVERANCE
AND CHANGE IN CONTROL AGREEMENT (the “Agreement”) is entered into as of the 4th day of January, 2011 (the “Effective Date”), by
and between THE EAST CAROLINA BANK (“ECB”) and JAMES J. BURSON (“Executive”). 

W I T N E S S E T H: 

WHEREAS, in connection with Executive’s employment by ECB, Executive and ECB previously entered
into a Severance and Change in Control Agreement dated December 14, 2009 (the Agreement”), under which, among other things, ECB agreed to make payments or reimbursements to Executive for certain expenses associated with the relocation of
his residence, on the condition that Executive repay a portion of those payments and reimbursements to ECB if Executive’s employment with ECB terminated for certain reasons before December 31, 2011; and 

WHEREAS, Executive and ECB now desire to modify the Agreement as described in this Amendment
No. 1. 
 NOW, THEREFORE, in consideration of the premises and mutual
promises, covenants and conditions hereinafter set forth, and for other good and valuable considerations, the receipt and sufficiency of which hereby are acknowledged, ECB and Executive hereby agree as follows: 

1.    The text of Paragraph 2 (captioned “Advance for Payment of Relocation Expenses”) of the
Agreement hereby is deleted and is replaced in its entirety by the following new Paragraph 2: 
 “2.
Advance for Payment of Relocation Expenses. In connection with Executive’s continued employment with ECB, ECB agrees to advance to Executive the sum of $50,000 for the purpose of his payment of ongoing and future expenses
incurred in connection with the intended relocation of his principal residence, including without limitation moving expenses, travel expenses and temporary living expenses. Executive agrees to repay to ECB the amount advanced to him as described
above, together with interest on that amount computed daily at a rate of 1.95% per annum, upon demand by ECB at any time; provided, however, that Executive and ECB agree as follows. 

        (a) On each January 4, beginning on January 4, 2012 (each
such date referred to as an “Anniversary Date”), if Executive remains employed by ECB on that Anniversary Date, ECB will forgive a portion of the unpaid balance of Executive’s payment obligation to ECB under this Paragraph 2 equal to
$25,000 plus accrued interest thereon at the above rate from the date of this Agreement through that Anniversary Date, with the effect of this Paragraph 2 being that, if Executive remains employed by ECB on January 4, 2013, Executive’s
full obligation under this Agreement will have been forgiven by ECB. 

         (b) If, prior to
January 4, 2013, ECB terminates Executive’s employment without “Cause” (as defined in Paragraph 6(a) below) other than as a result of Executive’s Disability (as defined in Paragraph 6(b) below), or Executive dies while
employed by ECB, ECB will forgive the full amount of Executive’s remaining unpaid obligation under this Agreement, including all accrued interest thereon. 
         (c) If, prior to January 4, 2013, Executive resigns from his employment with ECB, or his employment with ECB terminates or is terminated,
voluntarily or involuntarily (including as a result of Executive’s Disability), other than as described in Paragraph 2(b) above, then Executive shall be obligated to pay to ECB the then-current outstanding and unforgiven balance of
Executive’s payment obligation under this Paragraph 2, together with accrued interest, in full within 60 days following termination of Executive’s employment. If Executive fails to make any such payment to ECB following ECB’s written
demand therefor, ECB may deduct all or part of such unpaid amount from, or setoff all or part of such unpaid amount against, any amounts or obligation owed by ECB to Executive, provided that such deduction or setoff is permissible under and
effected in accordance with Treasury Regulation §1.409A-3(j)(4)(xiii) and Treasury Regulation §1.409A-3(i)(2), if applicable. 
         Executive acknowledges and agrees that, except as provided in this Paragraph 2, ECB shall have no further obligation for the payment of, or to reimburse him
for, any such moving expenses, travel expenses, relocation expenses or temporary living expenses incurred by him.” 

2.    The text of Paragraph 9 (captioned “Compliance with CPP Rules”) of the Agreement hereby
is deleted and is replaced in its entirety by the following new Paragraph 9: 
 “9. Compliance
with CPP Rules. Executive understands and agrees that Bancorp is a participant in the U.S. Department of the Treasury’s TARP Capital Purchase Program (the “CPP”), and, as a result, ECB and Bancorp are bound by applicable
law, rules, regulations and guidance restricting or pertaining to the compensation of officers and employees of CPP participants which are now in effect or may later be established (including but not limited to the rules and guidance currently set
forth in interim final rules appearing at 31 C.F.R. Part 30 promulgated under Sections 101(a)(1), 101(c)(5) and 111 of the Emergency Economic Stabilization Act of 2008, as amended by the American Recovery and Reinvestment Act of 2009) (collectively,
the “CPP Rules”). Executive and ECB intend for this Agreement and any forgiveness of Executive’s payment obligation under this Agreement to comply with the CPP Rules and, for that purpose, and notwithstanding anything contained in
this Agreement to the contrary, Executive and ECB agree as follows. 

        (a) Prohibited Payments; Authority to Modify
Agreement. In no event shall ECB have any obligation to forgive any portion of Executive’s obligation under Paragraph 2 of this Agreement, or to make any payment, or in any manner provide any compensation (whether in the form of cash,
stock or otherwise) or other benefit to Executive (including without limitation any “Golden Parachute Payment,” as that term is defined in the CPP Rules, or any other payment or benefit payable in connection with or following any
termination of Executive’s employment), to the extent that ECB’s Board of Directors or its Compensation Committee determines, in its sole judgment, that such forgiveness, payment, compensation or other benefit would violate or be
prohibited by or inconsistent with the CPP Rules. 

         If, in the sole judgment of
ECB’s Board of Directors or its Compensation Committee, any provision of this Agreement, or any such forgiveness, payment, compensation or benefit which ECB is or becomes obligated to effect, pay or provide to Executive under this Agreement,
would violate or be prohibited by or inconsistent with the CPP Rules, then the Board or that Committee shall have the authority, exercisable unilaterally and without Executive’s consent, to modify any or all of the provisions of this Agreement,
or to reduce or eliminate any such forgiveness, payment, compensation or other benefit, to the extent the Board or Committee, in its sole judgment, considers necessary in order to comply with the CPP Rules, and, in such event, Executive shall have
no right and ECB shall have to obligation with respect to such forgiveness, payment, compensation or other benefit to the extent it is reduced or eliminated as provided above. 

        The Board’s or Committee’s power to modify this Agreement shall
be effective for so long as ECB and Bancorp are subject to the CPP Rules. The Board’s or Committee’s action modifying this Agreement may, but need not, be in the form of a written amendment or supplement to this Agreement, or in the
form of a duly adopted resolution.
         (b) Recovery
of Bonus and Incentive Compensation. If, in the sole judgment of ECB’s Board of Directors or its Compensation Committee, the forgiveness of any portion of Executive’s obligation under Paragraph 2 of this Agreement, or any
payment or benefit paid or provided to Executive under this Agreement, that the Board or Committee deems to be a “Bonus” or “Incentive Compensation” (as those terms are defined in the CPP Rules) was based on materially inaccurate
financial statements or on any other materially inaccurate performance criteria, that payment or benefit shall not have been earned by Executive, shall be subject to reversal or recovery by ECB, and shall be repaid by Executive to ECB within 15 days
after written demand by ECB. Executive’s repayment obligations shall survive termination of this Agreement and shall be effective for as long as ECB and Bancorp are subject to applicable CPP Rules.

        (c) Waiver. Executive hereby
acknowledges and agrees that, for as long as Bancorp is a participant in the CPP, ECB and Bancorp will be bound by the CPP Rules, and any implementing guidance issued by the U.S. Treasury or other federal agencies. Executive hereby grants the
waiver required by the U.S. Treasury to release the United States and ECB and Bancorp from any claims that Executive might otherwise have as a result of any modification of this Agreement, or any reduction or elimination of any forgiveness, payment,
compensation or other benefit, as provided above, and agrees to execute such other documents as ECB, Bancorp or the U.S. Treasury may require to evidence this waiver. 

        (d) Survival of Covenants. Executive’s
covenants and agreements and ECB’s rights provided for in this Paragraph 9 shall survive and remain fully in effect following any termination of Executive’s employment with ECB.” 

3.    Except as modified and amended as described in this Amendment No. 1, the Agreement shall remain in
full force and effect in accordance with its original terms. 

 IN WITNESS WHEREOF, the
parties have executed this Amendment No. 1 as of the day and year first hereinabove written. 
  

			
	THE EAST CAROLINA BANK
		
	By:	 	/s/ A. Dwight Utz
		 	President and Chief Executive Officer

  

			
	EXECUTIVE
		
	 /s/ James J. Burson
	 	(SEAL)
	     James J. Burson	 	

 ND: 4823-0769-6392, v. 1

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