Document:

Capital Purchase Program Compliance Agreement

 Exhibit 10.05 
 CAPITAL PURCHASE PROGRAM COMPLIANCE AGREEMENT 
 This CAPITAL PURCHASE PROGRAM COMPLIANCE AGREEMENT (this “Agreement”) is entered into as of this the 16th day
of January, 2009, by and among ECB Bancorp, Inc., a North Carolina corporation (the “Corporation”), The East Carolina Bank, a North Carolina-chartered bank and wholly owned subsidiary of the Corporation (the “Bank”), and Gary M.
Adams (the “Executive”). The Corporation and the Bank are referred to in this Agreement individually and together as the “Employer.” 
 WHEREAS, the Corporation has submitted an application to participate in the U.S. Department of the Treasury’s Troubled Assets Relief Program (TARP) Capital Purchase Program
(CPP), and 
 WHEREAS, the Corporation expects to issue to the U.S. Department of the Treasury (UST)
cumulative preferred stock and warrants to acquire common stock of the Corporation and as a consequence to be a participant in the U.S. Department of the Treasury’s Troubled Assets Relief Program (TARP) Capital Purchase Program (CPP), and

 WHEREAS, as a condition to participation in the CPP, the compensation arrangements of the
Employer’s senior executive officers must comply with applicable UST rules and guidance governing executive compensation of CPP participants, and 
 WHEREAS, the Executive is or may be a senior executive officer, as that term is defined in the UST’s rules and guidance governing executive compensation of participants in the
CPP; and 
 WHEREAS, it is in the Executive’s best interests to agree to certain modifications to
the Executive’s compensation arrangements to allow the Employer to participate in the CPP, which participation is expected to improve the Executive’s long-term prospects with the Employer. 
 NOW THEREFORE, in consideration of these premises, the mutual covenants contained herein, and other
good and valuable considerations, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 ARTICLE 1 
 CAPITAL PURCHASE PROGRAM COMPLIANCE

 1.1 Recovery of Bonus and Incentive Compensation. Any bonus or incentive compensation paid to the Executive under any
compensation arrangement between the Executive and the Employer shall be subject to recovery by the Employer and shall be repaid by the Executive to the Employer if, in the judgment of the Employer’s board of directors or the board committee
having jurisdiction over executive compensation, the compensation was based on materially inaccurate financial statements or on any other materially inaccurate performance criteria. The compensation shall be repaid by the Executive to the Employer
within 30 days after written demand by the Employer or as soon thereafter as is practicable. 

  

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The Executive’s obligations under this section 1.1 shall survive termination of this Agreement and shall be effective for as long as the Employer is a
participant in the CPP, and is subject to applicable CPP rules and guidance. The Executive’s obligations under this section 1.1 shall expire when the Employer is no longer a participant in the CPP, provided that the Executive shall have repaid
all amounts for which a repayment demand has been made by the Employer. The bonus and incentive compensation subject to recovery by the Employer under this section 1.1 includes, but is not limited to, cash compensation, stock option or other
equity-based compensation, and any other bonus or incentive compensation paid under any compensation arrangement between the Executive and the Employer including, but not limited to, an employment agreement, severance agreement, nonqualified
deferred compensation agreement, equity-based award agreement, or short-term or long-term incentive award or performance award arrangement, whether written or unwritten and whether existing on the date of this Agreement or entered into hereafter,
(the “Compensation Arrangements”). 
 1.2 Modification of Compensation Arrangements. Despite any contrary provisions within
any Compensation Arrangement between the Executive and the Employer, the Employer’s board of directors and the board committee having jurisdiction over the Executive’s compensation shall have the authority unilaterally and without the
Executive’s consent to modify the Compensation Arrangements, including but not limited to reducing or eliminating severance benefits payable under the arrangements, if in the board’s or committee’s sole judgment the modification is
necessary to comply with applicable UST rules and guidance governing executive compensation of CPP participants which rules and guidance are currently set forth in interim final rules appearing at 31 C.F.R. Part 30 (the “CPP Rules”). The
board or committee’s power to modify Compensation Arrangements shall be effective for termination of the Executive’s employment occurring while the Employer is subject to the CPP Rules. The board’s or committee’s action modifying
any Compensation Arrangements may but need not be in the form of a written amendment of or supplement to a Compensation Arrangement, or in the form of a duly adopted resolution. The board’s or committee’s power to modify Compensation
Arrangements shall expire when the Employer is no longer a participant in and subject to the CPP Rules. Loss of the Employer’s compensation deduction resulting from application of the CPP Rules shall not be a basis for modification of
Compensation Arrangements under this section 1.2. 
 1.3 Waiver. The Executive hereby acknowledges and agrees that, for as long as the
Employer is a participant in and is subject to applicable rules and guidance for the CPP, the Employer will be bound by the executive compensation and corporate governance requirements of section 111 of the Emergency Economic Stabilization Act of
2008 and any implementing guidance or regulations issued by the UST. The Executive hereby grants to the UST the waiver required by UST to release the UST from any claims that the Employer or the Executive might otherwise have as a result of the
modification of Compensation Arrangements, and agrees to execute such other documents as UST may require to evidence the waiver. 
 ARTICLE 2 
 MISCELLANEOUS 
 2.1 Successors. This Agreement shall be binding upon and inure to the benefit of the Employer and the Executive and their successors, assigns, and
representatives, including 

  

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any persons acquiring directly or indirectly all or substantially all of the business or assets of the Employer by purchase, merger, share exchange,
consolidation, reorganization, or otherwise. 
 2.2 Notices. Any notice under this Agreement shall be deemed to have been effectively
made or given if in writing and personally delivered, delivered by mail properly addressed in a sealed envelope, postage prepaid by certified or registered mail, delivered by a reputable overnight delivery service, or sent by facsimile transmission.
Unless otherwise changed by proper notice, notice shall be properly addressed to the Executive if addressed to the address of the Executive on the books and records of the Employer at the time of the delivery of such notice, and properly addressed
to the Employer if addressed to ECB Bancorp, Inc., Post Office Box 337, Engelhard, North Carolina 27824, Attention: Corporate Secretary. 
 2.3 Captions and Counterparts. The captions in this Agreement are solely for convenience. The captions do not define, limit, or describe the scope or intent of this Agreement. This Agreement may be executed in several counterparts,
each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument. 
 2.4 Amendment
and Waiver. This Agreement may not be amended, released, discharged, abandoned, changed, or modified except by an instrument in writing signed by each of the parties hereto which makes specific reference to this Agreement. The failure of any
party hereto to enforce at any time any of the provisions of this Agreement shall not be construed to be a waiver of any such provision nor affect the validity of this Agreement or any part thereof or the right of any party thereafter to enforce
each and every such provision. No waiver of a breach of this Agreement shall be held to be a waiver of any other or subsequent breach. 
 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. 
  

					
	 EXECUTIVE
	 		 	ECB BANCORP, INC.
			
	 /S/ Gary M. Adams
	 		 	 /S/ Arthur H. Keeney III

	Gary M. Adams	 		 	Arthur H. Keeney III
	Senior Vice President and Chief Financial Officer	 		 	President and Chief Executive Officer
			
		 		 	THE EAST CAROLINA BANK
			
		 		 	 /S/ Arthur H. Keeney III

		 		 	Arthur H. Keeney III
		 		 	President and Chief Executive Officer

  

 3Form of Performance Share Award Agreement

 Exhibit 10.1 
 FORM OF 
 PERFORMANCE SHARE AWARD AGREEMENT 
 This Performance Share Award Agreement (together with the Notice of Grant of Performance Share Award (the “Grant Notice”) attached
hereto and incorporated by reference herein, the “Performance Share Award Agreement”) is made and entered into as of the grant date set forth on the Grant Notice (the “Date of Grant”), by and between Health Net,
Inc., a Delaware corporation (the “Company”), and the recipient identified on the Grant Notice, an employee of the Company or a subsidiary of the Company (the “Recipient”). 
 WHEREAS, the Compensation Committee (the “Committee”) of the Board of Directors (the “Board”) of the Company has
approved the grant (the “Grant”) of a Performance Share Award, as hereinafter defined, to the Recipient as set forth below under the Company’s 2006 Long-Term Incentive Plan, as amended from time to time (the
“Plan”). Capitalized terms used but not defined herein shall have the meanings set forth in the Plan. 
 NOW, THEREFORE, in
consideration of the covenants and agreements herein contained and intending to be legally bound hereby, the parties agree as follows: 
 1.
Grant of Performance Shares. The Company hereby grants to the Recipient a Performance Share Award consisting of the target number set forth on the Grant Notice (the “Target Award”) of rights to receive (“Performance
Shares”), upon vesting, a share of the Common Stock, par value $.001 per share (the “Common Stock”) of the Company, subject to all of the terms and conditions of this Performance Share Award Agreement. The actual number of
shares earned by the Recipient may be less than or greater than the Target Award, as set forth in Section 2. 
 2. Lapse of
Restrictions. Except as otherwise provided in Section 3 or 10 hereof, the Performance Shares shall vest with respect a percentage of the Performance Shares (with such percentage ranging between 0% to 200% of the Target Award) on a date,
which shall be as soon as practicable following the completion of the performance period (which shall be set forth on Appendix I), upon which the Committee makes a determination (the “Vesting Date”) whether, as of the completion of
the performance period, the performance goals set forth on Appendix I hereto have been achieved, with the extent of such vesting to be determined in the manner set forth in such Appendix; provided, however, that in no event shall the Company
deliver the vested Performance Shares to Recipient later than March 15 following the calendar year in which such Performance Shares vest, subject to Recipient’s payment of the par value (if any) for such Performance Shares. Upon the
Vesting Date, the Recipient shall pay to the Company the par value for each share of Common Stock delivered pursuant to this Grant in such consideration as determined by the Committee in its sole discretion. Shares that have become vested may be
evidenced by stock certificates, at the request of the Recipient, which certificates shall be registered in the name of the Recipient and delivered to Recipient within ten (10) days of such request. If the Minimum Performance Levels (as defined
on Appendix I) have not been achieved as of the Vesting Date, the unvested Performance Shares shall be forfeited without consideration upon the Vesting Date. 

 3. Termination of Employment. 
 (a) Except as otherwise set forth in Section 10, if prior to the Vesting Date, the Recipient’s employment with the Company is
terminated by either the Recipient or the Company for any reason (a “Termination Event”), then all of the Performance Shares shall be immediately forfeited at such time. 
 (b) If the Recipient violates the terms of Section 4 of this Performance Share Award Agreement (a “Breach Event”),
in addition to being subject to all remedies in law or equity that the Company may assert, then at any time thereafter the Company, in its sole and absolute discretion, may, with respect to any Common Stock attributable to a Performance Share:
(i) to the extent that the Common Stock is beneficially owned by the Recipient, reacquire from the Recipient, in return for an amount equal to the par value of the Common Stock which was paid by the Recipient to the Company as described in
Section 2 above, any or all of the shares of such Common Stock; and (ii) to the extent that the Common Stock has been sold, assigned or otherwise transferred by the Recipient, recover from the Recipient an amount equal to the Gain Realized
(as defined in Section 4 below) from such sale, assignment or transfer. 
 (c) Upon the occurrence of a Breach Event, the
Company may elect to purchase all or any portion of the Common Stock pursuant to this Section 3 by delivery of written notice (the “Repurchase Notice”) to the Recipient within ninety (90) days after the occurrence of such
Breach Event. 
 4. Employment/Association with Company Competitor. The Recipient hereby agrees that, during (i) the six-month
period following a termination of the Recipient’s employment with an Employer that entitles the Recipient to receive severance benefits under an agreement with or the policy of the Company or (ii) the twelve-month period following a
termination of the Recipient’s employment with an Employer that does not entitle the Recipient to receive such severance benefits (the period referred to in either clause (i) or (ii), the “Noncompetition Period”), the
Recipient shall not undertake any employment or activity (including, but not limited to, consulting services) with a Competitor (as defined below), where the loyal and complete fulfillment of the duties of the competitive employment or activity
would call upon the Recipient to reveal, to make judgments on or otherwise use any confidential business information or trade secrets of the business of the Company or any Subsidiary to which the Recipient had access during the Recipient’s
employment with the Employer. In addition, the Recipient agrees that, during the Noncompetition Period applicable to the Recipient following termination of employment with the Employer, the Recipient shall not, directly or indirectly, solicit,
interfere with, hire, offer to hire or induce any person, who is or was an employee of the Company or any of its Subsidiaries during the 12 month period prior to the date of such termination of employment, to discontinue his or her relationship with
the Company or any of its Subsidiaries or to accept employment by, or enter into a business relationship with, the Recipient or any other entity or person. In the event that the Recipient breaches the covenants set forth in this first paragraph of
Section 4, it shall be considered a Breach Event under Section 3 above. 
 For purposes of this Section 4: “Gain
Realized” shall equal the difference between (x) the par value paid by the Recipient for the Common Stock issued in respect of the Performance Shares and (y) the greater of the Fair Market Value (as defined in the Plan) of the
Common Stock issued in respect of the Performance Shares (I) on the date of transfer of such Common Stock or (II) on the date such competitive activity with a Competitor was commenced by the Recipient; and “Competitor” shall
refer to any health maintenance organization or insurance company that provides managed health care or related services similar to those provided by the Company or any Subsidiary. 
  

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 It is hereby further agreed that if any court of competent jurisdiction shall determine that the
restrictions imposed in this Section 4 are unreasonable (including, but not limited to, the definition of Competitor or the time period during which this provision is applicable), the parties hereto hereby agree to any restrictions that such
court would find to be reasonable under the circumstances. 
 The Recipient acknowledges that the services to be rendered by the Recipient to
the Company are of a special and unique character, which gives this Performance Share Award Agreement a peculiar value to the Company, the loss of which may not be reasonably or adequately compensated for by damages in an action at law, and that a
material breach or threatened breach by the Recipient of any of the provisions contained in this Section 4 will cause the Company irreparable injury. Recipient therefore agrees that the Company may be entitled, in addition to the remedies set
forth above in this Section 4 and any other right or remedy, to a temporary, preliminary and permanent injunction, without the necessity of proving the inadequacy of monetary damages or the posting of any bond or security, enjoining or
restraining Recipient from any such violations or threatened violations. 
 5. No Rights as a Stockholder. The Recipient shall not be
entitled to dividends, if any, that are paid with respect to the shares of Common Stock unless and until the Performance Shares have vested and shares of Common Stock have been delivered with respect thereto. Recipient shall also not have the right
to vote any shares subject to the Performance Shares unless and until the Performance Shares shall have vested and shares of Common Stock have been delivered with respect thereto. 
 6. Notices. Any notice or communication given hereunder shall be in writing and shall be given electronically (e.g., email) or by fax or
first class mail, certified or registered with return receipt requested, and shall be deemed to have been duly given three (3) days after mailing or twenty-four (24) hours after transmission of an email or a fax to the following addresses:

  

			
	 To the Recipient at:
	  	Address on record at Health Net, Inc. as of the date any notice is to be delivered.
		
	 To the Company at:
	  	 Health Net, Inc.
 21650 Oxnard Street
 Woodland Hills, California 91367
 Attention: General
Counsel

 or to such other address as any party may have furnished to the other in writing in accordance herewith, except
that notices of change of address shall be effective only upon receipt. 
  

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 7. Securities Laws Requirements. The Company shall not be obligated to transfer any shares of
Common Stock from the Recipient to another party, if such transfer, in the opinion of counsel for the Company, would violate the Securities Act of 1933, as amended from time to time (the “Securities Act”) (or any other federal or
state statutes having similar requirements as may be in effect at that time). Further, the Company may require as a condition of transfer of any shares to the Recipient that the Recipient furnish a written representation that he or she is holding
the shares for investment and not with a view to resale or distribution to the public. The Company either has or will file an appropriate Registration Statement on Form S-8 (or other applicable form), and has taken or will take such actions as
necessary to keep the information therein current from time to time, in order to register the Common Stock under the Securities Act and shall use its commercially reasonable efforts to cause such Registration Statement to become effective and to
maintain the effectiveness of such registration. 
 8. Protections Against Violations of Performance Share Award Agreement. This
Performance Share Award Agreement is not transferable, other than by will or pursuant to the laws of descent and distribution. 
 9.
Taxes. The Recipient understands that he or she (and not the Company) shall be responsible for any tax obligation that may arise as a result of the transactions contemplated by this Performance Share Award Agreement and shall pay to the
Company, in any method as set forth in Section 8.6 of the Plan, the amount determined by the Company to be such tax obligation at the time such tax obligation arises. If the Recipient fails to make such payment, the number of shares necessary
to satisfy the tax obligations shall be forfeited. 
 10. Change in Control. Notwithstanding the provisions of Section 3 hereof,
in the event that there shall occur a Change in Control (as defined in the Plan), each Performance Share shall become fully vested immediately upon the occurrence of the Change in Control at target. Notwithstanding anything in the Plan or this
Performance Share Award Agreement to the contrary, there shall be no acceleration of the payment of the Performance Shares if such accelerated payment would cause the Performance Shares to fail to comply with the provisions of Section 409A of
the Internal Revenue Code of 1986, as amended. 
 11. Failure to Enforce Not a Waiver. The failure of the Company to enforce at any
time any provision of this Performance Share Award Agreement shall in no way be construed to be a waiver of such provision or of any other provision hereof. 
 12. Governing Law. This Performance Share Award Agreement shall be governed by and construed according to the laws of the State of Delaware without regard to its principles of conflict of laws. 
 13. Amendments. This Performance Share Award Agreement may be amended or modified at any time only by an instrument in writing signed by each of
the parties hereto, and approved by the Committee. The Board may terminate or amend the Plan at any time; provided, however, that the termination or any modification or amendment of the Plan shall not, without the consent of the Recipient, impair
the rights of the Recipient under this Performance Share Award Agreement. 
 14. Survival of Terms. This Performance Share Award
Agreement shall apply to and bind the Recipient and the Company and their respective permitted assignees and transferees, heirs, legatees, executors, administrators and legal successors. 
  

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 15. Agreement Not a Contract for Services; Rights to Terminate Employment. Neither the grant of
the Performance Shares, this Performance Share Award Agreement nor any other action taken pursuant to this Performance Share Award Agreement shall constitute or be evidence of any agreement or understanding, express or implied, that the Recipient
has a right to continue to provide services as an officer, director, employee or consultant of the Company and/or the Employer for any period of time or at any specific rate of compensation. Nothing in the Plan or in this Performance Share Award
Agreement shall confer upon the Recipient the right to continue in the employment of an Employer or affect any right which an Employer may have to terminate the employment of the Recipient. The Recipient specifically acknowledges that the Employer
intends to review the Recipient’s performance from time to time, and that the Company and/or the Employer has the right to terminate the Recipient’s employment at any time, including a time in close proximity to the Vesting Date, for any
reason, with or without cause. The Recipient acknowledges that upon his or her termination of employment with an Employer for any reason, then all Performance Shares not yet vested shall be immediately forfeited at such time. 
 16. Decisions of Board or Committee. The Board or the Committee shall have the right to resolve all questions which may arise in connection with
this Performance Share Award Agreement or the Performance Shares. Any interpretation, determination or other action made or taken by the Board or the Committee regarding the Performance Shares, the Plan or this Performance Share Award Agreement
shall be final, binding and conclusive. 
 17. Failure to Execute Agreement. This Performance Share Award Agreement and the
Performance Shares granted hereunder is subject to the Recipient returning a counter-signed copy of this Performance Share Award Agreement to the designated representative of the Company on or before 60 days after the date of its distribution to the
Recipient. In the event that the Recipient fails to so return a counter-signed copy of this Performance Share Award Agreement within such 60-day period, then this Performance Share Award Agreement and the Performance Shares granted hereunder shall
automatically become null and void and shall have no further force or effect. Electronic acceptance of this Performance Share Award Agreement shall constitute an execution of the Performance Share Award Agreement by the Recipient and a return of the
counter-signed copy to the Company. 
  

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 IN WITNESS WHEREOF, the parties hereto have executed and delivered this Performance Share Award Agreement
on the day and year first above written. 
  

	
	Health Net, Inc.
	
	  
	Name:
	Title:
	
	RECIPIENT HEREBY EXPRESSLY ACKNOWLEDGES AND AGREES THAT HE/SHE IS AN EMPLOYEE AT WILL AND MAY BE TERMINATED BY THE EMPLOYER AT ANY TIME, WITH OR WITHOUT CAUSE.
	
	Your acceptance of this Performance Share Award Agreement indicates that you accept and agree to all the terms and provisions of the foregoing Performance Share Award Agreement and attached
Grant Notice, and to all the terms and provisions of the Health Net, Inc. 2006 Long-Term Incentive Plan, as amended to date, incorporated by reference herein.
	
	 

  

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 APPENDIX I 
 PERFORMANCE PERIOD AND PERFORMANCE GOALS 
  

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 Notice of Grant of Performance Share Award 
 Health Net, Inc. 
 Plan Name: Health Net, Inc. 2006 Long-Term Incentive Plan, as amended 
 Recipient Name: 
 Recipient ID: 
 Grant Date: 
 Grant Number: 
 Target Number: 
  

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