Document:

Directors' Compensation Plan

 Exhibit 10.16 
  
 CRESCENT STATE BANK 
 DIRECTORS’ COMPENSATION PLAN 
  
 By a vote of the Board of Directors of Crescent State Bank, (hereinafter referred to as the “Bank”) on the 22nd day of February, 2005, the Bank has established the Crescent State Bank Directors’ Compensation Plan (hereinafter referred to as the “Plan”) to allow eligible directors the
opportunity to participate in the Plan. 
  

	I.	ELIGIBILITY AND PARTICIPATION 

  
 Those individuals who are members of the Board of Directors of the Bank shall be eligible to become a participant in this Plan. A member of the Board of
Directors who chooses to participate in the Plan (hereinafter referred to as the “Participant”) shall complete and file a written statement with the Bank notifying the Bank of his or her election to participate in the Plan (the
“Election Form”). A copy of the Election Form is attached hereto and marked as Exhibit A. If a Participant later chooses to discontinue participation in the Plan, the Participant shall notify the Bank in writing. 
  

	II.	FEES 

  
 The amounts contributed to this Plan shall be any and all fees paid to the Participant for the Participant’s services as a director of the Bank, including but not limited to annual fees, meeting fees, and
committee fees, plus a bonus equal to twenty-five percent (25%) of such fees (collectively, the “Fees”). Fees contributed to this Plan shall be transferred to an account in the name of the Participant (the “Compensation
Account”) subject to the requirement of Section IV hereof. 
  

	III.	PURCHASING AGENT AND PARTICIPANT’S COMPENSATION ACCOUNT 

  

	 	A.	Purchasing Agent: 

  
 Concurrent with adoption of this Plan, the Bank will appoint a third party to act as a purchasing agent (hereinafter referred to as the “Purchasing
Agent”), enter into an Agency Agreement with the Purchasing Agent and, pursuant to the Agency Agreement and this Plan, the Bank shall transfer Participants’ Fees (collectively, the “Contributions”) to the Purchasing Agent. With
the Contributions, the Purchasing Agent shall purchase shares of common stock of Crescent Financial Corporation (the “Common Stock”) during the sixty days following the receipt of the Contributions. Such purchases shall be made on the open
market or in privately negotiated transactions. The Bank shall transfer to the Purchasing Agent the Contributions as of the day of the month or quarter on which such Contributions would otherwise have been paid to the Participants in the absence of
the Plan. 

	 	B.	Purchase of Common Stock: 

  
 The purchase price per share of Common Stock purchased either on the open market or in privately negotiated transactions will be the weighted average of
the total price paid by the Purchasing Agent for all shares that were purchased by the Purchasing Agent in respect of a particular calendar quarter (the “Market Price Average”). 
  

	 	C.	Participants’ Compensation Accounts: 

  
 The Purchasing Agent shall establish and maintain a Compensation Account on behalf of each Participant. A Participant’s Compensation Account shall be
credited with (i) the Participant’s Fees not already invested in Common Stock, and (ii) shares of Common Stock and any fraction thereof, which shall equal the proportionate share of the Participant’s Fees in the total purchase
price of the Common Stock in respect of a particular quarter divided by the Market Price Average for that quarter. Each Compensation Account of a Participant shall be maintained by the Purchasing Agent until the assets held therein have been
distributed to or on behalf of such Participant or to the beneficiary(ies) of the Participant. The value of the assets held in each Compensation Account shall be calculated at least monthly by the Purchasing Agent and reported to each Participant.

  

	 	(i)	Dividends: Any cash dividends paid on the Common Stock, shall be added to the Compensation Account of each Participant and shall be utilized in the same manner as Fees to
purchase shares of Common Stock. Any stock dividends paid on the Common Stock shall be credited to the Compensation Account of each Participant. 

  

	IV.	ASSET DISTRIBUTION OF PARTICIPANT’S COMPENSATION ACCOUNTS 

  

	 	A.	Asset Distribution of Participant’s Compensation Account: 

  
 Distribution of assets held in each Participant’s Compensation Account shall be in the form of Common Stock and cash for any fractional shares held
thereof. Any Fees held in the Compensation Account not invested in Common Stock shall be distributed to the Participant in the form of Cash. A Participant shall notify the Purchasing Agent by any reasonable means when the Participant wishes to have
a part or all of the assets of the Participant’s Compensation Account distributed to the Participant. Notwithstanding the foregoing, distribution of the assets held in a Participant’s Compensation Account shall commence or occur not later
than the first day of the calendar month following the end of a Participant’s term of office due to resignation, removal, failure to be re-elected or retirement. 

	 	(i)	Retirement: Retirement age for directors of Crescent State Bank shall be age seventy (70) or such other date as the Participant may actually retire.

  

	V.	ADMINISTRATION AND CLAIMS 

  

	 	A.	Plan Administrator: 

  
 The Plan Administrator of this Plan shall be the Bank until its resignation or removal by the Board. As Plan Administrator, the Bank shall be responsible
for the management and administration of this Plan. The Plan Administrator may delegate to others certain aspects of the management and operational responsibilities of this Plan including the employment of advisors and the delegation of ministerial
duties to qualified individuals. 
  

	 	B.	Claims Procedure and Arbitration: 

  
 In the event a dispute arises over assets held pursuant to this Plan and such assets are not transferred to the Participant (or to the Participant’s
beneficiary(ies) in the case of the Participant’s death) and such claimant feels he or she is entitled to receive the assets hereunder, then a written claim must be made to the Plan Administrator named above, or its successor, within sixty
(60) days from the date the transfer of assets is refused. The Plan Administrator shall review the written claim and if the claim is denied, in whole or in part, it shall provide in writing within sixty (60) days of receipt of such claim
the specific reasons for such denial, reference to the provisions of this Plan upon which the denial is based and any additional material or information necessary to perfect the claim. Such written notice shall further indicate the additional steps
to be taken by claimants if a further review of the claim denial is desired. A claim shall be deemed denied if the Plan Administrator fails to take any action within the aforesaid sixty (60) day period. 
  
 If a claimant desires a second review he or she shall notify the Plan
Administrator in writing within sixty (60) days of the first claim denial. Claimants may review this Plan or any documents relating hereto and submit any written issues and comments it deems appropriate. In its sole discretion, the Plan
Administrator shall then review the second claim and provide a written decision within sixty (60) days of receipt of such claim. This decision shall likewise state the specific reasons for the decision and shall include reference to specific
provisions of this Plan upon which the decision is based. 
  
 If
a claimant continues to dispute the refusal to transfer assets, then that claimant may submit the dispute to an arbitrator for final arbitration. The arbitrator shall be selected by mutual agreement of the Bank and the claimant. The arbitrator shall
operate under any generally recognized set of arbitration rules. The parties hereto agree that they and their heirs, personal representatives, successors and assigns 

 
shall be bound by the decision of such arbitrator with respect to any controversy properly submitted to it for determination. 
  

	VI.	COMPLIANCE WITH LAW AND APPROVAL OF REGULATORY BODIES 

  
 No shares of Common Stock shall be issued, no certificates for shares of Common Stock shall be delivered, no payments shall be made except in compliance
with all applicable federal and state laws and regulations (including, without limitation, withholding tax requirements), any listing agreement with any stock exchange to which Crescent Financial Corporation is a party, and the rules of any domestic
stock exchange on which the shares of Common Stock may be listed. The Bank and Crescent Financial Corporation shall have the right to rely on an opinion of counsel as to such compliance. Any certificates for shares issued to evidence Common Stock
may bear such legends and statements as the Board of Directors of Crescent Financial Corporation may deem to be advisable to assure compliance with federal and state laws and regulations. No Common Stock shall be issued and no certificates shall be
delivered under this Plan until Crescent Financial Corporation and the Bank shall have received such approvals as either may deem advisable from regulatory bodies having jurisdiction over such matters. 
  

	VII.	MISCELLANEOUS 

  

	 	A.	Amendment or Revocation: 

  
 It is understood that, during the lifetime of the Participant, this Plan may be amended or revoked at any time or times, in whole or in part, by the
mutual written consent of the Participant, the Bank, and the Purchasing Agent. In the event the Plan is revoked, no additional Fees will be transferred to the Purchasing Agent for the fiscal year in which the Plan is revoked. Distribution of each
Participants’ Compensation Account upon revocation of the Plan will be made in accordance with Section IV. 
  

	 	B.	Gender: 

  
 Whenever in this Plan words are used in the masculine or neuter gender, they shall be read and construed as in the masculine, feminine or neuter gender,
whenever they should so apply. 
  

	 	C.	Effect on Other Bank Plans: 

  
 Nothing contained in this Plan shall affect the right of the Participant to participate in or be covered by any qualified or non-qualified pension,
profit-sharing, group, bonus or other supplemental compensation or fringe benefit plan constituting a part of the Bank’s existing or future compensation structure. 

	 	D.	Headings: 

  
 Headings and subheadings in this Plan are inserted for reference and convenience only and shall not be deemed a part of this Plan. 
  

	 	E.	Partial Invalidity: 

  
 If any term, provision, covenant, or condition of this Plan is determined by an arbitrator or a court, as the case may be, to be invalid, void, or
unenforceable, such determination shall not render any other term, provision, covenant, or condition invalid, void, or unenforceable, and this Plan shall remain in full force and effect notwithstanding such partial invalidity. 
  

	 	F.	Continuation as Participant: 

  
 Neither this Plan nor the payments of any benefits hereunder shall be construed as giving to the Participant any right to be retained as a member of the
Board of Directors of the Bank. 
  

	 	G.	Applicable Law: 

  
 This Plan shall be governed and construed in accordance with the laws of the State of North Carolina. 

 IN WITNESS WHEREOF, the undersigned has executed this Plan instrument by authority of its Board of
Directors this 22nd day of February, 2005. 
  
  
 CRESCENT STATE BANK

 Cary, North Carolina 
  
  
 By: /s/ Michael G. Carlton  
             President & CEO 
  

 Exhibit A 
  

CRESCENT STATE BANK 
  
 Directors’ Compensation Plan 
 Election Form 
  

	
	1.                                      
                                        
                                        
                                        
                                        
               

	

         Last Name
                                        
                First Name
                                        
                Middle Initial 
  
                                       
             
         Social Security Number 
  
                                       
                                        
                                        
                                        
                                        
                   
         Mailing Address (Street, City, State, Zip Code) 
  
 2.    Compensation Election 
  
 (a) ___ Yes, I elect to participate in the Directors’ Compensation Plan. I understand my fees (plus a bonus equal to 25%) shall be transferred to an account in my name at First Citizens Bank, Raleigh,
North Carolina, for the purpose of purchasing the common stock of Crescent Financial Corporation. 
  
 (b) ______No, I decline to participate in the Directors’ Compensation Plan and choose to have my fees paid to me in cash on a quarterly basis.

  
 3.    Distribution 
  
 I have elected choice (a) in Item 2 above. I understand that First Citizens Bank
shall hold such assets in an account in my name until I directly contact First Citizens Bank with instructions regarding such assets or the end of my term of office due to resignation, removal, retirement or failure to be re-elected, whichever is
earlier. 
  
 Authorization 
  
 I authorize Crescent Financial Corporation and Crescent State Bank to effect the election
designated above. I understand that this election is for the taxable year ending December 31, 2005 and all years thereafter. If I choose to change my election hereafter, I shall notify Crescent State Bank in writing of such changes by filling
out another Election Form. 
  

			
	  
                                       
                                        
                            
	 	  
                                       
                                        
                                    

	Signature of Director	 	 DateManagement Licensing Agreement dated June 29, 2005.

BETWEEN :                  Beta Enterprises Inc.
                           802 - 728 Broughton Street
                           Vancouver, British Columbia
                           Canada

                           (the "Licensor")

AND :                      Paracap Corporation
                           5525 West Boulevard, Suite 443
                           Vancouver, British Columbia
                                    Canada

                           (the "Licensee")

RECITALS

1.       The Licensee by itself or through affiliated companies has operating
         experience, knowledge, know-how and ability in the development and
         opening and operation of liquor stores in Canada.

2.       The Licensee has requested and the Licensor has agreed to grant to the
         Licensee the right and license to manage and operate the Licensor's
         store located at 12968 232nd Street, Maple Ridge, British Columbia and
         a right of first refusal to negotiate terms over the future possibility
         for the Licensee to manage and operate a further number of the
         Licensor's stores located in the Lower Mainland of British Columbia.

         All of the aforementioned rights including: the right and license to
         manage the Licensor's store located at 12968 232nd Street, Maple Ridge,
         British Columbia; a right of first refusal to negotiate terms over the
         future possibility for the Licensee to manage and operate a further
         number of the Licensor's stores in the Lower Mainland of British
         Columbia are hereinafter collectively called the "Rights".

<PAGE>

GRANT OF RIGHT AND LICENCE

3.       The Licensor hereby grants to the Licensee and the Licensee hereby
         accepts from the Licensor the right and license to manage and operate
         the Licensor's store located at 12968 232nd Street, Maple Ridge,
         British Columbia as well as a right of first refusal to negotiate terms
         over the future possibility for the Licensee to manage and operate a
         further number of the Licensor's stores located in the Lower Mainland
         of British Columbia.

TERM

4.       This Agreement shall remain in full force and effect for a period of
         FIVE (5) YEARS with the Term terminating on June 29, 2010. (hereinafter
         such period is called the "Term")

RENEWAL AND RIGHT OF FIRST REFUSAL

5. The Licensee and Licensor agree as follows:

         Option to Renew

         a.       The Licensee shall have the option to renew this Agreement for
                  a further term of FIVE (5) YEARS (hereinafter called the
                  "Renewal Term") upon the same terms and conditions set forth
                  and contained in this Lease save and except the Fees of
                  contained in this Agreement. The Renewal Term will commence
                  upon the expiration of the term granted by this Agreement. If
                  no agreement can be reached within 90 days of the date the
                  Licensee exercises its option to renew, then the question of
                  the Fee shall be submitted to Arbitration by one arbitrator or
                  in the event the parties are unable to agree upon a single
                  arbitrator then by three (3) arbitrators (one to be appointed
                  by the other two arbitrators) pursuant to the Arbitration Act
                  of the Province of British Columbia in effect at the time of
                  the controversy. The arbitrator or if more than one, then at
                  least one of them, shall be a Certified Business Valuator with
                  experience in valuating franchises. The decision of the
                  arbitrator or arbitrators, as the case may be, shall be
                  binding upon the parties. Notwithstanding the said Arbitration
                  Act, all costs or arbitration shall be shared by the Licensor
                  and the Licensee. The option granted by the Licensor shall
                  only be valid and binding upon the Licensor if it is exercised
                  in writing by the Licensee not less than SIX (6) MONTHS before
                  the expiration of the Term.
<PAGE>

         (i)      The Licensor shall not deal with the rights in any manner
                  except as provided in this Agreement, that is it shall not
                  deal with the rights except during the SIX (6) MONTHS the Term
                  as contemplated in the foregoing section and only if the
                  Licensee has not exercised its option to renew

         b)       Right of First Refusal

                  During the duration of the Term only and during any holdover
                  period in which the Licensee continues to have the benefit of
                  the Rights (or a portion thereof), the Licensor may solicit
                  offers or make an offer to grant operating and managing rights
                  similar to that of this Agreement for other Licensor stores
                  located in the Lower Mainland of British Columbia but only for
                  a FIVE (5) YEAR term. The Licensor shall not accept any offer
                  or make any offer to any other person without first giving the
                  Licensee notice in writing, the Licensor is willing to accept
                  an offer from the Licensee on similar terms. The Licensor
                  shall deliver a written offer to the Licensee (the "Offer")
                  setting out the consideration, terms and conditions. The Offer
                  shall remain open for acceptance by the Licensor for a period
                  of FOURTEEN (14) Days from and after the date of receipt of
                  the Offer by the Licensee. If the Licensee accepts the Offer,
                  a binding contract of a Management License Agreement shall
                  come into effect. If the Licensee does not accept the Offer,
                  then the Licensor may grant such Rights to any other person,
                  firm or corporation (a "Third Party") provided, however, that:

         (i)      the Rights may not be granted to a Third Party upon terms more
                  favourable to such Third Party than the terms contained in the
                  Offer;

         (ii)     if the Rights are not granted to a Third Party on the terms as
                  contemplated in the Offer, the Licensor shall not be entitled
                  to grant such Rights to a Third Party and the provisions of
                  these sections under the heading "Renewal" in this Agreement
                  shall again become applicable to any offer or grant of Rights
                  by the Licensor.

FEES AND ROYALTIES

6.       The Fee, being the consideration for the grant of the Rights under this
         Agreement shall be the issuance of 600,000 shares of common stock by
         the Licensee upon the signing of this Agreement.
<PAGE>

         The Licensor will have a share of 30% of monthly profits net of
         expenses, as defined by Generally Accepted Accounting Principles, of
         the Licensee managed store located at 12968 232nd Street, Maple Ridge,
         British Columbia. The Licensor's share will be remitted to the Licensor
         by the Licensee by the fifteen of the following month. The Licensor has
         the right to hire an auditor in order to validate the storei|s
         accounting.

7.       Except for the aforesaid consideration stated in the previous
         paragraph, the Licensee shall not be required to make any other payment
         to the Licensor for the Rights during the Term. There are no royalties,
         percentage fee, or consideration of any kind payable for the Rights or
         the ongoing use of the Rights by the Licensee during the term.

SALE ASSIGNMENT AND TRANSFER

8.       The Licensee may assign, sell, and transfer ("Transfer") its interest
         in this Agreement or the Rights granted herein at anytime with FOURTEEN
         (14) DAYS prior notice to the Licensor. A Transfer shall also mean the
         sale of all or a portion of the corporate shares of the Licensee
         resulting in a charge in control. The Licensee may without consent of
         the Licensor and without notice to the Licensor assign, sell and
         transfer all of her interest in this Agreement or the Rights to a
         corporation incorporated or to be incorporated (the "Assignee"), of
         which the Licensee or a person of her immediate family (including
         child, parent, spouse, sibling) is a shareholder. To the extent the
         Assignee assumes the covenants and obligations of the Licensee
         hereunder, the Licensee shall thereupon and without further agreement,
         be freed and relieved of all liability with respect to such covenants
         and obligations.

PROMOTION

9.       The Licensee is responsible for the promotional events and costs
         related to the licensee managed store located at 12968 232nd Street,
         Maple Ridge, British Columbia.

TRAINING

10.      The Licensee is responsible for the technical support, training and
         management of employees related to the licensee managed store located
         at 12968 232nd Street, Maple Ridge, British Columbia.

<PAGE>

GENERAL PROVISIONS

Law Applicable

11.      This agreement shall be governed by and construed in accordance with
         the laws of the Province of British Columbia.

Entire Agreement

12.      This agreement constitutes the entire agreement between the parties and
         supersedes all previous agreements and understandings between the
         parties in any way relating to the subject matter hereof. It is
         expressly understood and agreed that the Company has made no
         representations, inducements, warranties or promises whether direct,
         indirect or collateral, oral or otherwise, concerning this agreement,
         the matters herein, the business franchised hereunder or concerning any
         other matter, which are not embodied herein.

Severability of Clauses

13.      If any covenant or other provision of this agreement is invalid,
         illegal or incapable of being enforced by reason of any rule of law or
         public policy such covenant or other provision shall be severed; all
         other conditions and provisions of this agreement shall, nevertheless,
         remain in full force and effect and no covenant or provision shall be
         deemed dependant upon any other covenant or provision unless so
         expressed herein.

Time of Essence

14.      Time shall be of the essence of this agreement and of each and every
         part hereof.

Notices

15.      All notices, requests, demands or other communications (collectively
         "Notices") by the terms hereof required or permitted to be given by one
         party to another shall be given in writing by personal delivery or by
         registered mail, postage prepaid, addressed to the other parties or
         delivered to such other parties as follows:

         (a)      To the Licensor at: Beta Enterprises Inc.
                                      802-728 Broughton Street
                                      Vancouver, British Columbia
                                      Canada

<PAGE>

         (b)      To the Licensee at: Paracap Corporation
                                      5525 West Boulevard, Suite 443
                                      Vancouver, British Columbia
                                      Canada

                           or at such other address as may be given by one of
                  them to the other in writing from time to time, and such
                  Notices shall be deemed to have been received when delivered,
                  or if mailed, FOURTEEN (14) DAYS after the date of mailing
                  thereof; provided that if any such Notice shall have been
                  mailed and if regular mail service shall be interrupted by
                  strike or other irregularity before the deemed receipt of such
                  Notice as aforesaid, then such Notice shall not be effective
                  unless delivered.

Agreement Binding Upon Successors and Assigns

16.      Subject to the restrictions on assignment herein contained, this
         agreement shall ensure to the benefit of and be binding upon the
         Licensee and the Licensor and their respective successors, legal
         representatives and assigns.

IN WITNESS WHEREOF the parties hereto have duly executed this Agreement the day
and year first above written.

per: Beta Enterprises Inc.

----------------------------------
Authorized Signatory:

----------------------------------       ----------------------------------
                  Witness

per: Paracap Corporation

<PAGE>

----------------------------------
Authorized Signatory:

----------------------------------       ----------------------------------
                  Witness

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