Document:

David
      C.
      Stump, M.D.

    11501
      Dalyn Terrace

    Potomac,
      MD 20854

    

    Re: Letter
      Agreement for Consulting Services (“Letter Agreement”)

    

    Dear
      Dr.
      Stump:

    

    We
      are
      pleased that you have agreed to enter into a consulting relationship with
      Sunesis. This letter serves as formal agreement between you and Sunesis and
      sets
      forth the terms and conditions of the consulting relationship. 

    

    
      	A.	
              Consulting
                Services and Compensation.

            

    

    

    Consulting
      services to be provided by you to Sunesis shall include, but not be limited
      to:

     

    
      	 	
              ·

            	
              Participate
                in the review and discussion of Sunesis’ Research and Development
                strategy.

            

    

    

    
      	 	
              ·

            	
              Review
                and assess development plans and status of Sunesis compounds, i.e.
                SNS-595, SNS-032, SNS-314, and provide advice to Sunesis
                management.

            

    

    

    
      	 	
              ·

            	
              Participate
                in selected advisory and project
                meetings.

            

    

    

    In
      consideration for your consulting services, Sunesis will compensate you $3,000
      per day (or prorated at a hourly rate of $375/hour). In addition to the
      foregoing, Sunesis will reimburse you for any out-of-pocket expenses reasonably
      incurred while performing consulting services on behalf of Sunesis. Payments
      hereunder shall be based on Sunesis’ receipt from you of an itemized invoice for
      services and expenses, including related documentation for such expenses.
      Sunesis will pay such invoice within thirty (30) days of receipt. The total
      payments to be made pursuant to this Letter Agreement during any given one
      (1)
      year period shall not exceed $40,000.
      

    

    
      	B.	
              Confidentiality
                and Inventions. The
                provisions for confidentiality and ownership of inventions in connection
                with your consulting services hereunder are governed by the terms
                and
                conditions set forth under your signed Confidential
                Information and Invention Assignment Agreement dated
                June 27, 2006,
                which is appended to this Letter Agreement as Attachment
                A.

            

    

     

    
      	C.	
              Term
                and Termination. The
                term of your consulting services shall commence on the date of your
                acceptance of this Letter Agreement and continue for as long as you
                remain
                a member of Sunesis’ Board of Directors. Either you or Sunesis may
                terminate this Letter Agreement any time upon prior written
                notice. 

            

    

    

    
      	D.	
              Independent
                Contractor.
                You agree that your relationship with SUNESIS will be that of an
                independent contractor and not that of an employee of Sunesis. You
                will
                not be eligible for any employee benefits or unemployment benefits,
                nor
                will Sunesis make deductions from payments made to you for taxes,
                unless
                otherwise stated below or as required by law, all of which will be
                your
                responsibility. California tax(es) will be deducted pursuant to California
                State Franchise Tax Board Publication 1023 for all non-resident
                consultants unless the appropriate exemption forms are completed
                and
                provided to SUNESIS

            

    

    

    
      	E.	
              No
                Conflict.
                You represent that neither the execution of this Letter Agreement
                nor the
                performance of your obligations under this Letter Agreement will
                result in
                a violation or breach of any other agreement by which you are bound.
                During the term of this Letter Agreement, you agree not to enter
                into a
                binding agreement that would conflict with any of the provisions
                of this
                Letter Agreement and/or preclude you from complying with the provisions
                hereof. 

            

    

    

    This
      Letter Agreement, including Attachment
      A,
      constitutes the entire agreement between you and Sunesis with respect to your
      consulting services and supersedes all prior written and oral agreements
      regarding the subject matter. This Letter Agreement shall be governed, construed
      and enforced by the laws of the State of California, without giving effect
      to
      the principles of conflict of laws.

     

    To
      indicate your acceptance of this Letter Agreement, please sign and date this
      letter in the space provided below and return it to me. On behalf of Sunesis
      and
      its management team, we all look forward to a successful working relationship.
      

    
      	 	 	 
	 	Sincerely,
	 	 
	 	
              SUNESIS
                PHARMACEUTICAL
                INC.

            
	 	 
	 	 
	 	Daniel N. Swisher, Jr.
	 	Chief Executive Officer and
              President

    

     

    ACCEPTED
      AND AGREED TO BY:

    

     

      
        

      

    

    David
      C.
      Stump, M.D.

     

    
      

    

    Tax
      ID/Social Security Number

    

    Dated
      Signed:

    
      

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ATTACHMENT
      A

    

    
      SUNESIS
        PHARMACEUTICALS, INC.

       

      CONFIDENTIAL
        INFORMATION

      AND

      INVENTION
        ASSIGNMENT AGREEMENT

      

      In
        exchange for my becoming retained by Sunesis Pharmaceuticals, Inc. (the
“Company”) as a member of its Board of Directors (hereinafter, the
“Relationship”), I hereby agree to comply with the provisions set forth
        below.

       

      
        	1.	
                Confidential
                  Information

              

      

       

      
        	 	
                a.

              	
                Definition
                  of Confidential Information.
                  As used in this Agreement, the term “Confidential
                  Information”
                  means information pertaining to any aspects of the Company’s business,
                  including but not limited to its research, technical data, products,
                  services, plans for products or services, customers and potential
                  customers, markets and marketing, finances, financial projections,
                  employees (including employee compensation), patents, patent applications,
                  developments, inventions, processes, designs, drawings, engineering,
                  formulae, regulatory information, medical reports, clinical data
                  and
                  analysis, reagents, cell lines, biological materials, chemical
                  formulas,
                  business plans, and agreements with third parties, disclosed to
                  me by the
                  Company either directly or indirectly in writing, orally or by
                  drawings,
                  or by observation or created by me during the period of the Relationship,
                  whether or not during working hours. Notwithstanding the foregoing,
                  Confidential Information shall not include information
                  that

              

      

       

      
        	
              	(i)	
                was
                  in the public domain at the time it was disclosed or has entered
                  the
                  public domain through no fault of
                  mine;

              

      

       

      
        	
              	(ii)	
                was
                  previously known to me, without restriction, at the time of the
                  disclosure, as demonstrated by my files in existence at the time
                  of
                  disclosure or is subsequently independently developed by me without
                  use of
                  Confidential Information; or

              

      

       

      
        	
              	(iii)	
                is
                  disclosed with the prior written approval of the
                  Company.

              

      

       

      
        	 	
                b.

              	
                Confidentiality
                  Obligations.
                  I
                  agree to hold in confidence and not directly or indirectly to use
                  or
                  disclose to any third person or entity, either during or after
                  termination
                  of the Relationship, any Confidential Information I obtain or create
                  during the period of the Relationship, whether or not during working
                  hours, except to the extent authorized by the Company, until such
                  Confidential Information becomes generally known by the public.
                  I agree
                  not to make copies of such Confidential Information except as authorized
                  by the Company.

              

      

       

      
        	 	
                c.

              	
                Return
                  of Confidential Information.
                  Upon termination of the Relationship or upon an earlier written
                  request of
                  the Company, I will return or deliver to the Company all tangible
                  forms of
                  such Confidential Information in my possession or control, including
                  any
                  copies or reproductions thereof.

              

      

       

      
        	 	
                d.

              	
                This
                  Section 1b shall not restrict me from disclosing Confidential Information
                  that I’m required to disclose pursuant to an order or requirement of a
                  court, administrative agency, or other governmental body; provided,
                  that I
                  shall promptly provide notice of such court order or requirement
                  to the
                  Company to enable the Company the opportunity to seek a protective
                  order
                  or otherwise prevent or restrict such
                  disclosure.

              

      

       

      
        
          
          

        

        
          1
            of
            1

          
            

          

        

        
          
          

        

      

       

      
        
          
            	2.	
                    Invention
                      Assignment

                  

          

        

      

       

      
        	 	
                a.

              	
                Inventions.
                  As used in this Agreement, the term “Inventions”
                  means designs, trademarks, discoveries, formulae, processes, manufacturing
                  techniques, trade secrets, inventions, developments, original works
                  of
                  authorship, concepts, know-how, improvements, and ideas, whether
                  or not
                  patentable or registrable under copyright or similar laws, including
                  all
                  rights to obtain, register, perfect and enforce these proprietary
                  interests and provided that such conception, development or reduction
                  to
                  practice was a result of that Relationship and relates to the business
                  of
                  the Company.

              

      

       

      
        	 	
                b.

              	
                Assignment
                  of Inventions.
                  Without further compensation, I hereby agree promptly to disclose
                  to the
                  Company, and I hereby assign and agree to assign to the Company
                  or its
                  designee, my entire right, title, and interest throughout the world
                  in and
                  to all Inventions and all intellectual property rights thereto
                  that I may
                  conceive, develop or reduce to practice during the period of the
                  Relationship, whether or not during working hours.
                  

              

      

       

      
        	
              	c.	
                Further
                  Assistance.
                  I
                  agree to perform, during and after the Relationship, all acts deemed
                  necessary or desirable by the Company to permit and assist it,
                  at the
                  Company’s expense, in obtaining and enforcing the full benefits,
                  enjoyment, rights and title throughout the world in the Inventions
                  and all
                  intellectual property rights thereto assigned to the Company as
                  set forth
                  in Section 2b above. Such acts may include, but are not limited to,
                  the disclosure to the Company of all information relating thereto,
                  the
                  execution of documents and assistance or cooperation in legal proceedings.
                  

              

      

       

      
        	
              	d.	
                Power
                  of Attorney.
                  If the Company is unable because of my mental or physical incapacity
                  or
                  unavailability or for any other reason to secure my signature to
                  apply for
                  or to pursue any application for any United States or foreign patents
                  or
                  copyright registrations covering Inventions assigned to the Company
                  as
                  above, then I hereby irrevocably designate and appoint the Company
                  and its
                  duly authorized officers and agents as my agent and attorney in
                  fact, to
                  act for and in my behalf to execute and file any such applications
                  and to
                  do all other lawfully permitted acts to further the application
                  for,
                  prosecution, issuance, maintenance or transfer of letters patent
                  or
                  copyright registrations thereon with the same legal force and effect
                  as if
                  originally executed by me. I hereby waive and irrevocably quitclaim
                  to the
                  Company any and all claims, of any nature whatsoever, that I now
                  or
                  hereafter have for infringement of any and all proprietary rights
                  assigned
                  to the Company.

              

      

       

      
        	
                3.

              	
                Miscellaneous

              

      

       

      
        	 	
                a.

              	
                No
                  Conflicts.
                  I
                  represent that my performance of all the terms of this Agreement
                  does not
                  and will not breach any agreement to keep in confidence proprietary
                  information, knowledge or data acquired by me in confidence or
                  in trust
                  prior to the Relationship, and I will not disclose to the Company,
                  or
                  induce the Company to use, any confidential or proprietary information
                  or
                  material belonging to any previous employer or any other third
                  party. I
                  agree not to enter into any written or oral agreement that conflicts
                  with
                  the provisions of this Agreement. I further represent that, to
                  the best of
                  my knowledge and belief, I am not a party to any other agreement,
                  which
                  will interfere with my full compliance with this
                  Agreement.

              

      

       

      
        
          
          

        

        
          2
            of
            2

          
            

          

        

        
          
          

        

      

       

      
        	 	
                b.

              	
                Solicitation
                  of Employees, Consultants and Other Parties.
                  I
                  agree that during the term of Relationship with the Company, and
                  for a
                  period of twelve (12) months following the termination of the Relationship
                  for any reason, I shall not directly or indirectly (i) solicit,
                  induce,
                  recruit or encourage any of the Company’s employees or consultants to
                  terminate their relationship with the Company, or attempt any of
                  the
                  foregoing, either for myself or any other person or entity; or
                  (ii)
                  solicit any licensor to or customer of the Company or licensee
                  of the
                  Company’s products, that are known to me, with respect to any business,
                  products or services that are competitive to the products or services
                  offered by the Company or under development as of the date of termination
                  of the Relationship.

              

      

       

      
        	 	
                c.

              	
                Effects
                  of Agreement.
                  This Agreement (i) shall survive the termination of the Relationship,
                  (ii) does not in any way restrict my right or the right of the
                  Company to terminate the Relationship, with or without cause,
                  (iii) inures to the benefit of successors and assigns of the Company,
                  and (iv) is binding upon my heirs and legal
                  representatives.

              

      

       

      
        	
              	d.	
                Governing
                  Law.
                  This Agreement shall be governed by the laws of the State of California
                  applicable to contracts entered into and performed entirely within
                  the
                  State, without giving effect to principles of conflict of
                  laws.

              

      

       

      
        	
              	e.	
                Severability.
                  If any provision of this Agreement is held to be unenforceable
                  under
                  applicable law, then such provision shall be excluded from this
                  Agreement
                  only to the extent unenforceable, and the remainder of such provision
                  and
                  of this Agreement shall be enforceable in accordance with its
                  terms.

              

      

       

      
        	
              	f.	
                Entire
                  Agreement; Modification.
                  This Agreement supersedes any oral, written or other communications
                  or
                  agreements concerning the subject matter, and may be amended or
                  waived
                  only by a written instrument signed by the
                  parties.

              

      

       

      I
        certify
        and acknowledge that I have carefully read all of the provisions of this
        Agreement and that I understand and will fully and faithfully comply with
        such
        provisions.

       

      

      By: 

      
        

      

      David
        C.
        Stump, M.D. 

       

      Date
        Signed:

      
        
     

      
        
          
          

        

        
          3
            of
            3Exhibit
      10.1

     

    SOUTHERN
      COMMUNITY BANK AND TRUST 

    Amended
      & Restated Salary Continuation Agreement of 

    F.
      Scott
      Bauer

    

    This
      Amended Salary Continuation Agreement (this “Agreement”) is entered into as of
      this ________day of ____________________________, 2007, by and between Southern
      Community Bank and Trust, a North Carolina-chartered bank (the “Bank”), and F.
      Scott Bauer, its Chief Executive Officer (the “Executive”).

    

    WHEREAS,
      the Executive has contributed substantially to the success of the Bank and
      the
      Bank desires that the Executive continue in its employ;

    

    WHEREAS,
      to encourage the Executive to remain an employee of the Bank, the Bank is
      willing to provide salary continuation benefits to the Executive, payable from
      the Bank’s general assets;

    

    WHEREAS,
      none of the conditions or events included in the definition of the term “golden
      parachute payment” that is set forth in Section 18(k)(4)(A)(ii) of the Federal
      Deposit Insurance Act [12U.S.C. 1828(k)(4)(A)(ii)] and in Federal Deposit
      Insurance Corporation Rule 359.1(f)(1)(ii) [12 CFR 359.1(f)(1)(ii)] exists
      or,
      to the best knowledge of the Bank, are contemplated insofar as the Bank is
      concerned;

    

    WHEREAS,
      the parties hereto intend that this Agreement shall be considered an unfunded
      arrangement maintained primarily to provide supplemental retirement benefits
      for
      the Executive, and to be considered a non-qualified benefit plan for purposes
      of
      the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). The
      Executive is fully advised of the Bank’s financial status and understands that
      he is a general creditor of the Bank;

    

    WHEREAS,
      the Bank and the Executive entered into an Executive Supplemental Retirement
      Plan Executive Agreement dated as of January 25, 2002, providing for specified
      retirement benefits for the Executive after termination of his
      employment;

     

    WHEREAS,
      the Bank and the Executive have negotiated and agreed to miscellaneous changes
      in the terms and conditions of the January 25, 2002 Executive Supplemental
      Retirement Plan Executive Agreement, and

    

    WHEREAS,
      the Bank and the Executive intend that this Agreement shall amend and restate
      in
      its entirety the January 25, 2002 Executive Supplemental Retirement Plan
      Executive Agreement effective as of January 1, 2007.

    

    NOW
      THEREFORE, in consideration of these premises and other good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      the
      Executive and the Bank hereby agree as follows.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      1
      DEFINITIONS

    

    The
      following words and phrases used in this Agreement have the meanings specified.
      

    

    
      	
              1.1

            	
              “Accrual
                Balance” means the liability that should be accrued by the Bank under
                generally accepted accounting principles (“GAAP”) for the Bank’s
                obligation to the Executive under this Agreement, applying Accounting
                Principles Board Opinion No. 12 as amended by Statement of Financial
                Accounting Standards No. 106. The Accrual Balance shall be calculated
                using a Discount Rate determined by the Plan Administrator, resulting
                in
                an Accrual Balance at the Executive’s Normal Retirement Age that is equal
                to the present value of the normal retirement benefits assuming
                commencement at Normal Retirement Date of age 62.
                

            

    

    

    The
      Executive initial Accrual Balance as of January 1, 2007 was
      $202,362.

     

    The
      “Discount Rate” means the rate used by the Plan Administrator for determining
      the Accrual Balance. If required by its outside auditors, the Plan Administrator
      may adjust the Discount Rate to maintain the rate within reasonable standards
      according to GAAP. Unless otherwise changed by the Plan Administrator the
      Discount Rate shall be seven percent (7%). Any change in the Discount Rate
      shall
      not cause the Executive’s Account Balance to be reduced, but would only affect
      the future accounting accrual. 

    

    
      	
              1.2
                

            	
              “Actuarial
                (Actuarially) Equivalent” means a benefit of equivalent value differing in
                timing, payment period, or manner of payment to the Normal Annuity
                Form
                determined by generally accepted actuarial principles. The actuarial
                equivalent is calculated for different purposes, as
                follows:

            

    

    

    
      	 	
              (a)

            	
              For
                Benefits Not Paid as a Lump Sum:
                All alternate forms of distributions shall be Actuarially Equivalent
                to
                the Normal Annuity Form of distribution at a Participant’s Normal
                Retirement Date. The alternative form of payment shall be based on
                the
                1983 Group Annuity Male Mortality Table, with an interest assumption
                of
                7.0%.

            

    

    

    
      	 	
              (b)

            	
              For
                Benefits Paid in a Lump Sum:
                Any lump sum payment (a form of benefit differing in time, period,
                or
                manner of payment from a specific benefit provided under this Agreement)
                shall be computed using the “1983 Group Annuity Male Mortality Table” and
                the “Applicable Interest Rate” where the “Applicable Interest Rate” shall
                mean the greater of either (i) seven percent (7%), or (ii) the 30
                Year US
                Treasury Bond Rate in effect as of the first of the month preceding
                the
                month of payment. 

            

    

    

    
      	
              1.3
                

            	
              “Beneficiary”
                means each designated person, or the estate of the deceased Executive,
                entitled to benefits, if any, upon the death of the Executive, determined
                according to Article 4. 

            

    

    

    
      	
              1.4
                

            	
              “Change
                in Control” shall mean a change in control as defined in Internal Revenue
                Code Section 409A and rules, regulations, and guidance of general
                application thereunder issued by the Department of the Treasury,
                including
                - 

            

    

    

    
      	
            	(a)	
              Change
                in ownership: A change in ownership of Southern Community Financial
                Corporation occurs on the date any one person or group of persons
                accumulates ownership of Southern Community Financial Corporation’s stock
                constituting more than 50% of the total fair market value or total
                voting
                power of Southern Community Financial Corporation’s stock,
                

            

    

     

    
      	
            	(b)	
              Change
                in effective control: A change in effective control occurs when either
                (i)
                any one person or more than one person acting as a group acquires
                within a
                12-month period ownership of stock of Southern Community Financial
                Corporation possessing 35% or more of the total voting power of Southern
                Community Financial Corporation’s stock, or (ii) a majority of Southern
                Community Financial Corporation’s Board of Directors is replaced during
                any 12-month period by Directors whose appointment or election is
                not
                endorsed in advance by a majority of Southern Community Financial
                Corporation’s Board of Directors, or

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
            	(c)	
              Change
                in ownership of a substantial portion of assets: A change in the
                ownership
                of a substantial portion of Southern Community Financial Corporation’s
                assets occurs if in a 12 month period any one person or more than
                one
                person acting as a group acquires assets from Southern Community
                Financial
                Corporation having a total gross fair market value equal to or exceeding
                40% of the total gross fair market value of all of the assets of
                Southern
                Community Financial Corporation immediately before the acquisition
                or
                acquisitions. For this purpose, “gross fair market value” means the value
                of Southern Community Financial Corporation’s assets, or the value of the
                assets being disposed of, determined without regard to any liabilities
                associated with the assets. 

            

    

    

    
      	
              1.5

            	
              “Code”
                means the Internal Revenue Code of 1986, as amended, and rules,
                regulations, and guidance of general application issued thereunder
                by the
                Department of the Treasury. 

            

    

    

    
      
        
          	1.6	
                  “Disability”
                    means that a Participant is either:

                

        

      

    

    

    
      	 	
              (a)
                

            	
              Unable
                to engage in any substantial gainful activity by reason of any medically
                determinable physical or mental impairment which can be expected
                to result
                in death or can be expected to last for a continuous period of not
                less
                than 12 months, or

            

    

    

    
      	
            	(b)	
              By
                reason of any medically determinable physical or mental impairment
                (which
                can be expected to result in death or can be expected to last for
                a
                continuous period of not less than 12 months) receiving income replacement
                benefits for a period of three (3) or more months under an accident
                and
                health plan covering employees of the
                Employer.

            

    

    

    
      	
              1.7
                

            	
              “Early
                Termination” means Separation from Service before Normal Retirement Age
                for reasons other than death, Disability, Termination for Cause,
                or after
                a Change in Control. 

            

    

    

    
      	1.8	
              “Effective
                Date” means January 1, 2007.

            

    

    

    
      	
              1.9

            	
              “Intentional,”
                for purposes of this Agreement, no act or failure to act on the part
                of
                the Executive shall be deemed to have been intentional if it was
                due
                primarily to an error in judgment or negligence. An act or failure
                to act
                on the Executive’s part shall be considered intentional if it is not in
                good faith and if it is without a reasonable belief that the action
                or
                failure to act is in the best interests of the Bank.
                

            

    

    

    
      	1.10	
              “Normal
                Retirement Age” means the Executive’s sixty second (62nd)
                birthday. 

            

    

     

    
      	1.11	
              “Plan
                Administrator” or “Administrator” means the plan administrator described
                in Article
                8. 

            

    

    

    
      	
              1.12
                

            	
              “Plan
                Year” means a twelve-month period commencing on January 1 and ending on
                December 31 of each year. The initial Plan Year shall commence on
                January
                1, 2007.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              1.13
                

            	
              “Separation
                from Service” means the Executive’s service (as an executive and/or
                independent contractor to the Bank and any member of a controlled
                group,
                as defined in Code Section 414), terminates for any reason, other
                than
                because of a leave of absence approved by the Bank or the Executive’s
                death. For purposes of this Agreement, if there is a dispute about
                the
                employment status of the Executive or the date of the Executive’s
                Separation from Service, the Bank shall have the sole and absolute
                right
                to decide the dispute unless a Change in Control shall have occurred.
                

            

    

    

    
      	
              1.14
                

            	
              “Termination
                for Cause” and “Cause” shall have the same meaning specified in any
                effective Severance or Employment Agreement existing on the date
                hereof or
                hereafter entered into between the Executive and the Bank. If the
                Executive is not a party to a severance or employment agreement containing
                a definition of “termination for cause”, then Termination for Cause shall
                mean the Bank terminated the Executive’s employment because of any of the
                following reasons: 

            

    

    

    
      	 	
              (a)
                

            	
              the
                Executive’s gross negligence or gross neglect of duties or intentional and
                material failure to perform stated duties after written notice thereof,
                or
                

            

    

    

    
      	 	
              (b)

            	
              disloyalty
                or dishonesty by the Executive in the performance of the Executive’s
                duties, or a breach of the Executive’s fiduciary duties for personal
                profit, in any case whether in the Executive’s capacity as a director or
                officer, or 

            

    

    

    
      	 	
              (c)
                

            	
              intentional
                wrongful damage by the Executive to the business or property of the
                Bank
                or its affiliates, including without limitation the reputation of
                the
                Bank, which in the judgment of the Bank causes material harm to the
                Bank
                or affiliates, or 

            

    

    

    
      	 	
              (d)
                

            	
              a
                willful violation by the Executive of any applicable law or significant
                policy of the Bank or an affiliate that, in the Bank’s judgment, results
                in an adverse effect on the Bank or any affiliate, regardless of
                whether
                the violation leads to criminal prosecution or conviction. For purposes
                of
                this Agreement, applicable laws include any statute, rule, regulatory
                order, statement of policy, or final cease-and-desist order of any
                governmental agency or body having regulatory authority over the
                Bank, or
                

            

    

    

    
      	 	
              (e)

            	
              the
                Executive is removed from office or permanently prohibited from
                participating in the Bank’s affairs by an order issued under Section
                8(e)(4) or Section 8(g)(1) of the Federal Deposit Insurance Act,
                12 U.S.C.
                1818(e)(4) or (g)(1), or 

            

    

    

    
      	 	
              (f)

            	
              conviction
                of the Executive for or plea of no contest to a felony or conviction
                of or
                plea of no contest to a misdemeanor involving moral turpitude, or
                the
                actual incarceration of the Executive.

            

    

    

    
      	
              1.15
                

            	
              Year
                of Vesting Service. Shall mean each calendar year in which the Executive
                completes 1,000 or more hours of service in the employ of the Bank.
                

            

    

    
    

      

    
      
        ARTICLE
          2
LIFETIME
          BENEFITS

      

    

    

    
      	
              2.1
                

            	
              Normal
                Retirement Benefit. Unless a Separation from Service or a Change
                in
                Control occurs before Normal Retirement Age, when the Executive attains
                his Normal Retirement Age the Bank shall pay to the Executive the
                benefit
                described in this Section 2.1(a) instead of any other benefit under
                this
                Agreement

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (a)

            	
              Amount
                of Normal Form of benefit. The annual Normal Retirement benefit under
                this
                Section 2.1 is $188,504, which shall be paid in monthly installments
                in
                the monthly amount of $15,708.67 for the Life of the Executive (Normal
                Form is a Life Annuity). 

            

    

    

    
      	 	
              (b)

            	
              Payment
                of benefit. Subject to the six month delay provision in Section 2.7
                herein, the Bank shall pay the annual benefit to the Executive in
                12 equal
                monthly installments payable on the first day of each month, beginning
                with the month immediately after the month in which the Executive
                attains
                the Normal Retirement Age. The Normal Retirement monthly benefit
                as
                provided in Section 2.1(a) above, shall be paid to the Executive
                for the
                Executive’s lifetime with the last payment ceasing as of the first day of
                the month preceding the Executives death.

            

    

    .
      

    
      	 	
              (c)

            	
              Alternative
                Forms of Payment. Executive may elect to receive his Normal Retirement
                Benefit payable under this Agreement payable in a Form other than
                a Life
                Annuity (as provided above in Section 2.1(a) above), provided he
                elects to
                do so either on his initial Election Form or a Change of Election
                Form.
                Any Change of Election Form must be in accordance with IRC 409A and
                such
                Change of Election Form must be received by the Plan Administrator
                at
                least 12 months prior to the date payment of benefits are to other
                commence under this Agreement. 

            

    

    

    Accordingly,
      a Participant may elect, in lieu of a Life Annuity, to receive his Normal
      Retirement Benefit in one of the following Alternative Forms of
      Payment:

    

    
      	 	
              (i)

            	
              Life
                Annuity with either a 120 or 180 guaranteed monthly
                payments;

            

    

    
      	 	 	 

      	 	
              (ii)

            	
              Joint
                and 50% (or 100%) Survivor Annuity.

            

    

    

    Any
      Alternative Form of Payment provide herein shall be the Actuarial Equivalent
      of
      the Normal Form (Life Annuity) of payment. 

    

    
      	
               

            	
              If
                the Executive’s Separation from Service thereafter is a Termination for
                Cause or if this Agreement terminates under Article 5, no further
                benefits
                shall be paid.

            

    

    

    
      	
              2.2
                

            	
              Early
                Termination Benefit. Upon Early Termination as defined in Section
                1.7, the
                Bank shall pay to the Executive the benefit described in this Section
                2.2(a) instead of any other benefit under this
                Agreement.

            

    

    

    
      	 	
              (a)

            	
              Amount
                of benefit. The Executive’s vested Accrual Balance as of the end of the
                month preceding his Early Termination shall be converted (without
                discounting for the time value of money) as of his Normal Retirement
                Date
                into a Life Annuity (or other Alternative Form of Payment as provided
                in
                Section 2.1(c) above), based on the Actuarial Equivalent of his vested
                Accrual Balance as of such date.

            

    

     

    
      	
            	(b)	
              Payment
                of benefit. The Bank shall commence payment of the monthly retirement
                benefit as computed in Section 2.2 above beginning with the later
                of
                (i) the seventh month after the Executive’s Separation from Service, or
                (ii) the month immediately after the month in which the Executive
                attains
                his Normal Retirement Age. The monthly benefit shall be paid to the
                Executive for the Executive’s lifetime, subject to any Alternative Form of
                Payment the Executive may have elected in accordance with Section
                2.1(c)
                herein. 

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      
        	
              	(c)	
                Vesting
                  of Accrued Balance.
                  The Vested amount of a Executive’s Accrued Balance shall be determined on
                  the basis of the Executive’s number of Years of Vesting Service according
                  to the following schedule:

              

      

    

     

    
      	
              Vesting
                Schedule

            
	
              Years
                of Vesting Service 

            	
              Percent
                Vested

            
	
              Less
                than 3

            	
               0%

            
	
              3

            	
              33
                1/3% 

            
	
              4

            	
               66
                2/3%

            
	
              5
                or more years

            	
              100%

            

    

    

    
      	
              2.3
                

            	
              Disability
                Benefit. Upon Separation from Service because of Disability before
                Normal
                Retirement Age, the Bank shall pay to the Executive the benefit described
                in this Section 2.3(a) instead of any other benefit under this
                Agreement.

            

    

    

    
      	 	
              (a)

            	
              Amount
                of benefit. The Executive’s vested Accrual Balance as of the end of the
                month preceding the date of his Disability shall be converted (without
                discounting for the time value of money) as of his Normal Retirement
                Date
                into a Life Annuity (or other Alternative Form of Payment as provided
                in
                Section 2.1(c) above), based on the Actuarial Equivalent of his vested
                Accrual Balance as of such date. 

            

    

    

    
      	 	
              (b)
                

            	
              Payment
                of benefit. The Bank shall pay the Disability benefit to the Executive
                in
                12 equal monthly installments on the first day of each month beginning
                with the later
                of
                (i) the seventh month after the Executive’s Separation from Service, or
                (ii) the month immediately after the month in which the Executive
                attains
                his Normal Retirement Age. 

            

    

     

    
      	
              2.4
                

            	
              Change-in-Control
                Benefit. If a Change in Control occurs after the Effective Date of
                this
                Agreement but before the Executive’s Normal Retirement Age and before his
                Separation from Service, the Bank shall pay to the Executive the
                benefit
                described in this Section 2.4(a) instead of any other benefit under
                this
                Agreement.

            

    

    

    
      	 	
              (a)
                

            	
              Amount
                of benefit: The benefit under this Section 2.4 is equal to the Normal
                Retirement Age Accrual Balance required under Section 2.1, without
                discounting for the time value of money. On the Effective Date of
                this
                Agreement, using the initial Discount Rate of 7 % and assuming payment
                of
                the $188,504 annual benefit under Section 2.1 beginning with the
                month
                after the month in which the Executive attains his Normal Retirement
                Age
                and ending when the Executive attains age, the Normal Retirement
                Age
                Accrual Balance was $1,890,148.
                 

            

    

    

    
      	 	
              (b)
                

            	
              Payment
                of benefit: The Bank shall pay the Change-in-Control benefit under
                Section
                2.4 of this Agreement to the Executive in a single lump sum within
                ten
                (10) days after the Change in Control. If the Executive receives
                the
                benefit under this Section 2.4 because of the occurrence of a Change
                in
                Control, the Executive shall not be entitled to claim additional
                benefits
                under Section 2.4 if an additional Change in Control occurs thereafter.
                

            

    

    

    
      	
              2.5
                

            	
              Occurrence
                of a Change in Control: Lump-sum Payment of Normal Retirement Benefit,
                Early Termination Benefit, or Disability Benefit Being Paid. If a
                Change
                in Control occurs at any time during the salary continuation benefit
                payment period and if when the Change in Control occurs the Executive
                is
                receiving or is entitled to receive at his Normal Retirement Age
                the
                benefit provided by Sections 2.1(b), 2.2(b), or 2.3(c), the Bank
                shall pay
                in a lump sum the present value of the Actuarial Equivalent of any
                remaining salary continuation benefits to the Executive in a single
                lump
                sum within ten (10) days after the Change in Control.
                

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              2.6
                

            	
              Contradiction
                Between this Agreement and Schedule A. If there is a contradiction
                between
                this Agreement and Schedule
                A
                attached hereto concerning the amount of a particular benefit due
                the
                Executive under Sections 2.2, 2.3, or 2.4 hereof, then the amount
                of the
                benefit determined under this Agreement shall control. If the Plan
                Administrator changes the Discount Rate employed for purposes of
                calculating the Accrual Balance, the Plan Administrator shall prepare
                or
                cause to be prepared a revised Schedule A, which shall supersede
                and
                replace any and all Schedules A previously prepared under or attached
                to
                this Agreement. However, any
                change in the Discount Rate shall not cause the Executive’s Account
                Balance to be reduced, but would only affect the future accounting
                accrual

            

    

    

    
      	
              2.7
                

            	
              Savings
                Clause Relating to Compliance with Code Section 409A. Despite any
                contrary
                provision of this Agreement, if when the Executive’s employment terminates
                the Executive is a Specified Employee, as defined in Code Section
                409A,
                and if any payments under Article 2 of this Agreement will result
                in
                additional tax or interest to the Executive because of Section 409A,
                the
                Executive will not be entitled to the payments under Article 2 until
                the
                earliest of:

            

    

    

    
      	 	
              (i)

            	
              the
                date that is at least six (6) months after termination of the Executive’s
                employment for reasons other than the Executive’s death,
                or

            

    

    

    
      	
            	(ii)	
              the
                date of the Executive’s death, or

            

    

    

    
      	
            	(iii)	
              any
                earlier date that does not result in additional tax or interest to
                the
                Executive under Section 409A. 

            

    

    

    If
      any
      provision of this Agreement would subject the Executive to additional tax or
      interest under Section 409A of the Code or result in a violation of Section
      409A
      of Code, the Bank shall reform such provision. However, the Bank shall maintain
      to the maximum extent practicable the original intent of the applicable
      provision without subjecting the Executive to additional tax or interest, and
      the Bank shall not be required to incur any additional compensation expense
      as a
      result of the reformed provision. References in this Agreement to Section 409A
      of the Code include rules, regulations, and guidance of general application
      issued by the Department of the Treasury under Code Section 409A. 

    

    
      	
              2.8

            	
              One
                Benefit Only. Despite anything to the contrary in this Agreement,
                the
                Executive and Beneficiary are entitled to one benefit only under
                this
                Agreement, which shall be determined by the first event to occur
                that is
                dealt with by this Agreement. Except as provided in Section 2.5 or
                Article
                3, subsequent occurrence of events dealt with by this Agreement shall
                not
                entitle the Executive or Beneficiary to other or additional benefits
                under
                this Agreement.

            

    

    

    ARTICLE
      3
      DEATH BENEFITS

     

    
      	
              3.1
                

            	
              Death
                During Active Service. Except as provided in Section 5.2, if the
                Executive
                dies before a Separation from Service, at the Executive’s death the
                Executive’s Beneficiary shall be entitled to the sum
                of:

            

    

    

    
      	 	
              (i)

            	
              an
                amount in cash equal to the Accrual Balance existing at the time
                of the
                Executive’s death, unless the Change-in-Control benefit shall have
                previously been paid to the Executive, plus

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (ii)

            	
              the
                benefit described in the Endorsement Split Dollar Agreement attached
                to
                this Agreement as Addendum
                A.
                

            

    

    

    No
      benefit shall be paid to the Beneficiary under sub-paragraph (i) above, if
      the
      Change-in-Control benefit shall have previously been paid to the Executive.
      If a
      benefit is payable to the Executive’s Beneficiary under sub-paragraph (i) above,
      the benefit shall be paid in a single lump sum 90 days after the Executive’s
      death. However, no benefits under this Agreement or under the Endorsement Split
      Dollar Agreement shall be paid or payable to the Executive or the Executive’s
      Beneficiary if this Agreement is terminated under Article 5. 

    

    
      	
              3.2

            	
              Death
                after Separation from Service. If the Executive dies after a Separation
                from Service and if such Separation from Service was not as a result
                of a
                Termination for Cause, at the Executive’s death the Executive’s
                Beneficiary shall be entitled to a monthly payment based on the
                Alternative Form of Payment the Executive elected in accordance with
                Section 2.1(c), provided he elected a Alternative Form of Payment
                in lieu
                of the Normal Annuity Form which is a Life Annuity. However, no payment
                shall be made to a Beneficiary under this Section 3.2 if a lump sum
                payment has previously been made under the Change-in-Control benefit
                payable under Section 2.5 above. However, no benefits under this
                Agreement
                shall be paid or payable to the Executive or the Executive’s Beneficiary
                if this Agreement is terminated under Article 5.
                

            

    

    

    ARTICLE
      4
      BENEFICIARIES

    

    
      	
              4.1
                

            	
              Beneficiary
                Designations. The Executive shall have the right to designate at
                any time
                a Beneficiary to receive any benefits payable under this Agreement
                upon
                the death of the Executive. The Beneficiary designated under this
                Agreement may be the same as, or different from, the beneficiary
                designation under any other benefit plan of the Bank in which the
                Executive participates. 

            

    

    

    
      	
              4.2
                

            	
              Beneficiary
                Designation: Change. The Executive shall designate a Beneficiary
                by
                completing and signing the Beneficiary Designation Form and delivering
                it
                to the Plan Administrator or its designated agent. The Executive’s
                Beneficiary designation shall be deemed automatically revoked if
                the
                Beneficiary predeceases the Executive or if the Executive names a
                spouse
                as Beneficiary and the marriage is subsequently dissolved. The Executive
                shall have the right to change a Beneficiary by completing, signing,
                and
                otherwise complying with the terms of the Beneficiary Designation
                Form and
                the Plan Administrator’s rules and procedures, as in effect from time to
                time. Upon the acceptance by the Plan Administrator of a new Beneficiary
                Designation Form, all Beneficiary designations previously filed shall
                be
                cancelled. The Plan Administrator shall be entitled to rely on the
                last
                Beneficiary Designation Form filed by the Executive and accepted
                by the
                Plan Administrator before the Executive’s
                death.

            

    

     

    
      	
              4.3
                

            	
              Acknowledgment.
                No designation or change in designation of a Beneficiary shall be
                effective until received, accepted, and acknowledged in writing by
                the
                Plan Administrator or its designated agent.

            

    

    

    
      	
              4.4
                

            	
              No
                Beneficiary Designation. If the Executive dies without a valid beneficiary
                designation, or if all designated Beneficiaries predecease the Executive,
                then the Executive’s spouse shall be the designated Beneficiary. If the
                Executive has no surviving spouse, the benefits shall be made to
                the
                personal representative of the Executive’s estate.
                

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              4.5
                

            	
              Facility
                of Payment. If a benefit is payable to a minor, to a person declared
                incapacitated, or to a person incapable of handling the disposition
                of his
                or her property, the Bank may pay such benefit to the guardian, legal
                representative, or person having the care or custody of the minor,
                incapacitated person, or incapable person. The Bank may require proof
                of
                incapacity, minority, or guardianship as it may deem appropriate
                before
                distribution of the benefit. Distribution shall completely discharge
                the
                Bank from all liability for the benefit.

            

    

    

    ARTICLE
      5
      GENERAL LIMITATIONS

    

    
      	
              5.1
                

            	
              Termination
                for Cause. Despite any contrary provision of this Agreement, the
                Bank
                shall not pay any benefit under this Agreement and this Agreement
                shall
                terminate if a Separation from Service is the result of Termination
                for
                Cause. Likewise, the Beneficiary shall not be entitled to any benefits
                under the Endorsement Split Dollar Agreement attached to this Agreement
                as
                Addendum
                A
                and the Endorsement Split Dollar Agreement also shall terminate if
                Separation from Service is the result of Termination for Cause.
                

            

    

    

    
      	
              5.2
                

            	
              Suicide
                or Misstatement. The Bank shall not pay any benefit under this Agreement
                and the Beneficiary shall be entitled to no benefits under the Endorsement
                Split Dollar Agreement attached as Addendum
                A
                if
                the Executive commits suicide within two years after the date of
                this
                Agreement or if the Executive makes any material misstatement of
                fact on
                any application or resume provided to the Bank or on any life insurance
                application for benefits which death benefits would be payable to
                the
                Bank. 

            

    

    

    
      	
              5.3
                

            	
              Removal.
                If the Executive is removed from office or permanently prohibited
                from
                participating in the Bank’s affairs by an order issued under Section
                8(e)(4) or (g)(1) of the Federal Deposit Insurance Act, 12 U.S.C.
                1818(e)(4) or (g)(1), all obligations of the Bank under this Agreement
                shall terminate as of the effective date of the order, and the Endorsement
                Split Dollar Agreement also shall terminate as of the effective date
                of
                the order. 

            

    

    

    
      	
              5.4

            	
              Default.
                Notwithstanding any provision of this Agreement to the contrary,
                if the
                Bank is in “default” or “in danger of default,” as those terms are defined
                in Section 3(x) of the Federal Deposit Insurance Act, 12 U.S.C. 1813(x),
                all obligations under this Agreement shall terminate.
                

            

    

    

    
      	
              5.5

            	
              FDIC
                Open-Bank Assistance. All obligations under this Agreement shall
                terminate, except to the extent determined that continuation of the
                contract is necessary for the continued operation of the Bank, when
                the
                Federal Deposit Insurance Corporation enters into an agreement to
                provide
                assistance to or on behalf of the Bank under the authority contained
                in
                Federal Deposit Insurance Act Section 13(c). 12 U.S.C.
                1823(c).

            

    

    

    However,
      rights of the parties that have already vested in accordance with Section 2.2(c)
      shall not be affected by such action. 

     

    ARTICLE
      6
 CLAIMS
      AND REVIEW PROCEDURES

    

    
      	
              6.1
                

            	
              Claims
                Procedure. A person or beneficiary (“claimant”) who has not received
                benefits under this Agreement that he or she believes should be paid
                may
                make a claim for such benefits as follows
                -

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (a)

            	
              Initiation
                - written claim. The claimant initiates a claim by submitting to
                the
                Administrator a written claim for the benefits. If the claim relates
                to
                the contents of a notice received by the claimant, the claim must
                be made
                within 60 days after the notice was received by the claimant. All
                other
                claims must be made within 180 days after the date of the event that
                caused the claim to arise. The claim must state with particularity
                the
                determination desired by the
                claimant.

            

    

    

    
      	 	
              (b)
                

            	
              Timing
                of Bank response. The Bank shall respond to the claimant within 90
                days
                after receiving the claim. If the Bank determines that special
                circumstances require additional time for processing the claim, the
                Bank
                may extend the response period by an additional 90 days by notifying
                the
                claimant in writing before the end of the initial 90-day period that
                an
                additional period is required. The notice of extension must state
                the
                special circumstances and the date by which the Bank expects to render
                its
                decision.

            

    

    

    
      	 	
              (c)

            	
              Notice
                of decision. If the Bank denies part or all of the claim, the Bank
                shall
                notify the claimant in writing of the denial. The Bank shall write
                the
                notification in a manner calculated to be understood by the claimant.
                The
                notification shall set forth - 

            

    

    

    
      	
            	(i)	
              the
                specific reasons for the denial, 

            

    

     

    
      	
            	(ii)	
              a
                reference to the specific provisions of the Agreement on which the
                denial
                is based, 

            

    

    

    
      
        
          	
                	(iii)	
                  a
                    description of any additional information or material necessary
                    for the
                    claimant
                    to perfect the claim and an explanation of why it is needed,
                    

                

        

      

    

    

    
      	 	
              (iv)
                

            	
              an
                explanation of the Agreement’s review procedures and the time limits
                applicable to such procedures, and 

            

    

    

    
      	 	
              (v)
                

            	
              a
                statement of the claimant’s right to bring a civil action under ERISA
                Section 502(a) following an adverse benefit determination on review.
                

            

    

    

    
      	
              6.2
                

            	
              Review
                Procedure. If the Bank denies part or all of the claim, the claimant
                shall
                have the opportunity for a full and fair review by the Bank of the
                denial,
                as follows - 

            

    

    

    
      	
            	(a)	
              Initiation
                - written request. To initiate the review, the claimant, within 60
                days
                after
                receiving the Bank’s notice of denial, must file with the Bank a written
                request
                for review.

            

    

    

    
      	 	
              (b)
                

            	
              Additional
                submissions - information access. The claimant shall then have the
                opportunity to submit written comments, documents, records, and other
                information relating to the claim. The Bank shall also provide the
                claimant, upon request and free of charge, reasonable access to and
                copies
                of all documents, records, and other information relevant (as defined
                in
                applicable ERISA regulations) to the claimant’s claim for
                benefits.

            

    

    

    
      	 	
              (c)

            	
              Considerations
                on review. In considering the review, the Bank shall take into account
                all
                materials and information the claimant submits relating to the claim,
                without regard to whether the information was submitted or considered
                in
                the initial benefit determination.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (d)

            	
              Timing
                of Bank response. The Bank shall respond in writing to the claimant
                within
                60 days after receiving the request for review. If the Bank determines
                that special circumstances require additional time for processing
                the
                claim, the Bank may extend the response period by an additional 60
                days by
                notifying the claimant in writing before the end of the initial 60-day
                period that an additional period is required. The notice of extension
                must
                state the special circumstances and the date by which the Bank expects
                to
                render its decision.

            

    

    

    
      	 	
              (e)

            	
              Notice
                of decision. The Bank shall notify the claimant in writing of its
                decision
                on review. The Bank shall write the notification in a manner calculated
                to
                be understood by the claimant. The notification shall set forth -
                

            

    

    

    
      	
            	(i)	
              the
                specific reason for the denial, 

            

    

    

    
      	 	
              (ii)
                

            	
              a
                reference to the specific provisions of the Agreement on which the
                denial
                is based, 

            

    

    

    
      	 	
              (iii)
                

            	
              a
                statement that the claimant is entitled to receive, upon request
                and free
                of charge, reasonable access to and copies of all documents, records,
                and
                other information relevant (as defined in applicable ERISA regulations)
                to
                the claimant’s claim for benefits, and

            

    

    

    
      	 	
              (iv)
                

            	
              a
                statement of the claimant’s right to bring a civil action under ERISA
                Section 502(a). 

            

    

    

    
      	
              6.3
                

            	
              Reimbursement
                of Expenses. If the claimant prevails at the conclusion of the claims
                and
                review procedure outlined in this Article 6, including any civil
                action
                brought by the claimant under ERISA Section 502(a), the Bank shall
                reimburse the claimant for all legal expenses incurred by the claimant
                in
                the claims and review procedure. 

            

    

    

    ARTICLE
      7
 MISCELLANEOUS

     

    
      	
              7.1
                

            	
              Amendments
                and Termination. Subject to Section 7.15 of this Agreement, this
                Agreement
                may be amended solely by a written agreement signed by the Bank and
                by the
                Executive; and except for termination occurring under Article 5,
                this
                Agreement may be terminated solely by a written agreement signed
                by the
                Bank and by the Executive.

            

    

     

    
      	
              7.2
                

            	
              Binding
                Effect. This Agreement shall bind the Executive, the Bank, and their
                Beneficiaries, survivors, executors, successors, administrators,
                and
                transferees. 

            

    

    

    
      	
              7.3

            	
              No
                Guarantee of Employment. This Agreement is not an employment policy
                or
                contract. It does not give the Executive the right to remain an employee
                of the Bank nor does it interfere with the Bank’s right to discharge the
                Executive. It also does not require the Executive to remain an employee
                or
                interfere with the Executive’s right to terminate employment at any
                time.

            

    

     

    
      	
              7.4
                

            	
              Non-Transferability.
                Benefits under this Agreement cannot be sold, transferred, assigned,
                pledged, attached, or encumbered in any
                manner.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              7.5
                

            	
              Successors;
                Binding Agreement. By an assumption agreement in form and substance
                satisfactory to the Executive, the Bank shall require any successor
                (whether direct or indirect, by purchase, merger, consolidation,
                or
                otherwise) to all or substantially all of the business or assets
                of the
                Bank to expressly assume and agree to perform this Agreement in the
                same
                manner and to the same extent that the Bank would be required to
                perform
                this Agreement if no such succession had
                occurred.

            

    

     

    
      	
              7.6
                

            	
              Tax
                Withholding. The Bank shall withhold any taxes that are required
                to be
                withheld from the benefits provided under this
                Agreement.

            

    

     

    
      	
              7.7
                

            	
              Applicable
                Law. This Agreement and all rights hereunder shall be governed by
                the laws
                of the State of North Carolina, except to the extent preempted by
                the laws
                of the United States of America. 

            

    

    

    
      	
              7.8
                

            	
              Unfunded
                Arrangement. The Executive and Beneficiary are general unsecured
                creditors
                of the Bank for the payment of benefits under this Agreement. The
                benefits
                represent the mere promise by the Bank to pay the benefits. Rights
                to
                benefits are not subject in any manner to anticipation, alienation,
                sale,
                transfer, assignment, pledge, encumbrance, attachment, or garnishment
                by
                creditors. Any insurance on the Executive’s life is a general asset of the
                Bank to which the Executive and Beneficiary have no preferred or
                secured
                claim. 

            

    

    

    
      	
              7.9
                

            	
              Entire
                Agreement. This Agreement and the Endorsement Split Dollar Agreement
                attached to this Agreement as Addendum
                A
                constitute the entire agreement between the Bank and the Executive
                concerning the subject matter. No rights are granted to the Executive
                under this Agreement other than those specifically set forth. This
                Agreement amends and restates in its entirety the January 25, 2002
                Executive Supplemental Retirement Plan Executive Agreement.
                

            

    

    

    
      	
              7.10
                

            	
              Severability.
                If any provision of this Agreement is held invalid, such invalidity
                shall
                not affect any other provision of this Agreement not held invalid,
                and
                each such other provision shall continue in full force and effect
                to the
                full extent consistent with law. If any provision of this Agreement
                is
                held invalid in part, such invalidity shall not affect the remainder
                of
                the provision not held invalid, and the remainder of such provision
                together with all other provisions of this Agreement shall continue
                in
                full force and effect to the full extent consistent with law.
                

            

    

    

    
      	
              7.11
                

            	
              Headings.
                Caption headings and subheadings herein are included solely for
                convenience of reference and shall not affect the meaning or
                interpretation of any provision of this Agreement.
                

            

    

    

    
      	
              7.12

            	
              Notices.
                All notices, requests, demands and other communications hereunder
                shall be
                in writing and shall be deemed to have been duly given if delivered
                by
                hand or mailed, certified or registered mail, return receipt requested,
                with postage prepaid, to the following addresses or to such other
                address
                as either party may designate by like notice. If to the Bank, notice
                shall
                be given to:

            

    

    

    Board
      of
      Directors 

    Southern
      Community Bank and Trust 

    4605
      Country Club Road 

    Winston-Salem,
      North Carolina 27104 

    

    or
      to
      such other or additional person or persons as the Bank shall have designated
      to
      the Executive in writing. If to the Executive, notice shall be given to the
      Executive at the Executive’s address appearing on the Bank’s records, or to such
      other or additional person or persons as the Executive shall have designated
      to
      the Bank in writing. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              7.13

            	
              Payment
                of Legal Fees. The Bank is aware that after a Change in Control management
                of the Bank could cause or attempt to cause the Bank to refuse to
                comply
                with its obligations under this Agreement, or could institute or
                cause or
                attempt to cause the Bank to institute litigation seeking to have
                this
                Agreement declared unenforceable, or could take or attempt to take
                other
                action to deny Executive the benefits intended under this Agreement.
                In
                these circumstances the purpose of this Agreement would be
                frustrated.

            

    

    

    It
      is the
      intention of the Bank that the Executive not be required to incur the expenses
      associated with the enforcement of rights under this Agreement, whether by
      litigation or other legal action, because the cost and expense thereof would
      substantially detract from the benefits intended to be granted to the Executive
      hereunder. It is the intention of the Bank that the Executive not be forced
      to
      negotiate settlement of rights under this Agreement under threat of incurring
      expenses. Accordingly, if after a Change in Control occurs it appears to the
      Executive that:

    

    
      	 	
              (i)

            	
              the
                Bank has failed to comply with any of its obligations under this
                Agreement, or

            

    

    

    
      	 	
              (ii)

            	
              the
                Bank or any other person has taken any action to declare this Agreement
                void or unenforceable, or instituted any litigation or other legal
                action
                designed to deny, diminish, or to recover from the Executive the
                benefits
                intended to be provided to the Executive hereunder,
                

            

    

    

    the
      Bank
      irrevocably authorizes the Executive from time to time to retain counsel of
      the
      Executive’s choice (at the Bank’s expense as provided in this Section 7.13) to
      represent the Executive in the initiation or defense of any litigation or other
      legal action, whether by or against the Bank or any director, officer,
      stockholder, or other person affiliated with the Bank, in any jurisdiction.
      

    

    Despite
      any existing or previous attorney-client relationship between the Bank and
      any
      counsel chosen by the Executive under this Section 7.13, the Bank irrevocably
      consents to the Executive entering into an attorney-client relationship with
      that counsel, and the Bank and the Executive agree that a confidential
      relationship shall exist between the Executive and that counsel. The fees and
      expenses of counsel selected from time to time by the Executive as provided
      in
      this Section shall be paid or reimbursed to the Executive by the Bank on a
      regular, periodic basis upon presentation by the Executive of a statement or
      statements prepared by such counsel in accordance with such counsel’s customary
      practices, up to a maximum
      aggregate amount of $500,000, whether suit be brought or not, and whether or
      not
      incurred in trial, bankruptcy, or appellate proceedings.

    

    The
      Bank’s obligation to pay the Executive’s legal fees provided by this Section
      7.13 operates separately from and in addition to any legal fee reimbursement
      obligation the Bank may have with the Executive under any separate employment,
      severance, or other agreement between the Executive and the Bank. Despite any
      contrary provision in this Section 7.13 however, the Bank shall not be required
      to pay or reimburse the Executive’s legal expenses if doing so would violate
      Section 18(k) of the Federal Deposit Insurance Act [12 U.S.C. 1828(k)] and
      Rule
      359.3 of the Federal Deposit Insurance Corporation [12 CFR 359.3].

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              7.14

            	
              Internal
                Revenue Code Section 280G Gross Up.

            

    

    

    
      	
            	(a)	
              Additional
                payment to account for Excise Taxes.
                If as the result of a Change in Control the Executive becomes entitled
                to
                acceleration of benefits under this Agreement or under any other
                plan or
                agreement of or with the Bank or its affiliates (together, the “Total
                Benefits”), and if any of the Total Benefits will be subject to the Excise
                Tax as set forth in Sections 280G and 4999 of the Internal Revenue
                Code of
                1986 (the “Excise Tax”), the Bank shall pay to the Executive the following
                additional amounts, consisting of:

            

    

    

    
      	
            	(i)	
              a
                payment equal to the Excise Tax payable by the Executive on the Total
                Benefits under Section 4999 of the Internal Revenue Code (the “Excise Tax
                Payment”), and 

            

    

    

    
      	
            	(ii)	
              a
                payment equal to the amount necessary to provide the Excise Tax Payment
                net of all income, payroll and excise taxes.

            

    

    

    Together,
      the additional amounts described in clauses (i) and (ii) above are referred
      to
      in this Agreement as the “Gross-Up Payment Amount.” Payment of the Gross-Up
      Payment Amount shall be made in addition to the amount set forth in Section
      2.4.

    

    Calculating
      the Excise Tax.
      For
      purposes of determining whether any of the Total Benefits will be subject to
      the
      Excise Tax and for purposes of determining the amount of the Excise Tax the
      following will apply:

    

    1)
       Determination
      of “parachute payments” subject to the Excise Tax: Any other payments or
      benefits received or to be received by the Executive in connection with a Change
      in Control or the Executive’s Separation from Service (whether under the terms
      of this Agreement or any other agreement or any other benefit plan or
      arrangement with the Bank, any person whose actions result in a Change in
      Control, or any person affiliated with the Bank or such person) shall be treated
      as “parachute payments” within the meaning of Section 280G(b)(2) of the Internal
      Revenue Code, and all “excess parachute payments” within the meaning of Section
      280G(b)(1) shall be treated as subject to the Excise Tax, unless in the opinion
      of the certified public accounting firm that is retained by the Bank as of
      the
      date immediately before the Change in Control (the “Accounting Firm”) such other
      payments or benefits do not constitute (in whole or in part) parachute payments,
      or such excess parachute payments represent (in whole or in part) reasonable
      compensation for services actually rendered within the meaning of Section
      280G(b)(4) of the Internal Revenue Code in excess of the base amount (as defined
      in Section 280G(b)(3) of the Internal Revenue Code), or are otherwise not
      subject to the Excise Tax,

    

    2)
       Calculation
      of benefits subject to the Excise Tax: The amount of the Total Benefits that
      shall be treated as subject to the Excise Tax shall be equal to the lesser
      of:

    

    
      	 	
              (i)

            	
              the
                total amount of the Total Benefits reduced by the amount of such
                Total
                Benefits that in the opinion of the Accounting Firm are not parachute
                payments, or 

            

    

    

    
      	
            	(ii)	
              the
                amount of excess parachute payments within the meaning of Section
                280G(b)(1) (after applying clause (1), above),
                and

            

    

    

    
      	 	
              3)

            	
              Value
                of non-cash benefits and deferred payments: The value of any non-cash
                benefits or any deferred payment or benefit shall be determined by
                the
                Accounting Firm in accordance with the principles of Sections 280G(d)(3)
                and (4) of the Internal Revenue
                Code.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Assumed
      Marginal Income Tax Rate. For purposes of determining the amount of the Gross-Up
      Payment Amount, the Executive shall be deemed to pay federal income taxes at
      the
      highest marginal rate of federal income taxation in the calendar years in which
      the Gross-Up Payment Amount is to be made and state and local income taxes
      at
      the highest marginal rate of taxation in the state and locality of the
      Executive’s residence on the date of Separation from Service, net of the
      reduction in federal income taxes that can be obtained from deduction of such
      state and local taxes (calculated by assuming that any reduction under Section
      68 of the Internal Revenue Code in the amount of itemized deductions allowable
      to the Executive applies first to reduce the amount of such state and local
      income taxes that would otherwise be deductible by the Executive, and applicable
      federal FICA and Medicare withholding taxes). 

    

    Return
      of Reduced Excise Tax Payment or Payment of Additional Excise Tax.

    If
      the
      Excise Tax is later determined to be less than the amount taken into account
      hereunder when the Executive’s employment terminated, the Executive shall repay
      to the Bank - when the amount of the reduction in Excise Tax is finally
      determined - the portion of the Gross-Up Payment Amount attributable to the
      reduction (plus that portion of the Gross-Up Payment Amount attributable to
      the
      Excise Tax, federal, state and local income taxes and FICA and Medicare
      withholding taxes imposed on the Gross-Up Payment Amount being repaid by the
      Executive to the extent that the repayment results in a reduction in Excise
      Tax,
      FICA, and Medicare withholding taxes and/or a federal, state, or local income
      tax deduction). 

    

    If
      the
      Excise Tax is later determined to be more than the amount taken into account
      hereunder when the Executive’s employment terminated (due, for example, to a
      payment whose existence or amount cannot be determined at the time of the
      Gross-Up Payment Amount), the Bank shall make an additional Gross-Up Payment
      Amount to the Executive for that excess (plus any interest, penalties, or
      additions payable by the Executive for the excess) when the amount of the excess
      is finally determined. 

    

    
      	
            	(d)	
              Responsibilities
                of the Accounting Firm and the Bank.

            

    

    

    Determinations
      Shall Be Made by the Accounting Firm. Subject to the provisions of Section
      7.14(a), all determinations required to be made under this Section 7.14(b)
      -
      including whether and when a Gross-Up Payment Amount is required, the amount
      of
      the Gross-Up Payment Amount and the assumptions to be used to arrive at the
      determination (collectively, the “Determination”) - shall be made by the
      Accounting Firm, which shall provide detailed supporting calculations both
      to
      the Bank and the Executive within 15 business days after receipt of notice
      from
      the Bank or the Executive that there has been a Gross-Up Payment Amount, or
      such
      earlier time as is requested by the Bank. 

    

    Fees
      and
      Expenses of the Accounting Firm and Agreement with the Accounting Firm. All
      fees
      and expenses of the Accounting Firm shall be borne solely by the Bank. The
      Bank
      shall enter into any agreement requested by the Accounting Firm in connection
      with the performance of its services hereunder. 

    

    Accounting
      Firm’s Opinion. If the Accounting Firm determines that no Excise Tax is payable
      by the Executive, the Accounting Firm shall furnish the Executive with a written
      opinion to that effect, and to the effect that failure to report Excise Tax,
      if
      any, on the Executive’s applicable federal income tax return will not result in
      the imposition of a negligence or similar penalty. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Accounting
      Firm’s Determination Is Binding; Underpayment and Overpayment. The Determination
      by the Accounting Firm shall be binding on the Bank and the Executive. Because
      of the uncertainty in determining whether any of the Total Benefits will be
      subject to the Excise Tax at the time of the Determination, it is possible
      that
      a Gross-Up Payment Amount that should have been made will not have been made
      by
      the Bank (“Underpayment”), or that a Gross-Up Payment Amount will be made that
      should not have been made by the Bank (“Overpayment”). 

    

    If,
      after
      a Determination by the Accounting Firm, the Executive is required to make a
      payment of additional Excise Tax, the Accounting Firm shall determine the amount
      of the Underpayment that has occurred. The Underpayment (together with interest
      at the rate provided in Section 1274(d)(2)(B) of the Internal Revenue Code)
      shall be paid promptly by the Bank to or for the benefit of the Executive.
      

    

    If
      the
      Gross-Up Payment Amount exceeds the amount necessary to reimburse the Executive
      for the Excise Tax according to Section 7.14(a), the Accounting Firm shall
      determine the amount of the Overpayment. The Overpayment (together with interest
      at the rate provided in Section 1274(d)(2)(B) of the Internal Revenue Code)
      shall be paid promptly by the Executive to or for the benefit of the Bank.
      Provided that the Executive’s expenses are reimbursed by the Bank, the Executive
      shall cooperate with any reasonable requests by the Bank in any contests or
      disputes with the Internal Revenue Service relating to the Excise Tax.

    

    Accounting
      Firm Conflict of Interest. If the Accounting Firm is serving as accountant
      or
      auditor for the individual, entity, or group effecting the Change in Control,
      the Executive may appoint another nationally recognized public accounting firm
      to make the Determinations required hereunder (in which case the term
“Accounting Firm” as used in this Agreement shall be deemed to refer to the
      accounting firm appointed by the Executive under this paragraph). 

    

    
      	
              7.15

            	
              Termination
                or Modification of Agreement Because of Changes in Law, Rules or
                Regulations. The Bank is entering into this Agreement on the assumption
                that certain existing tax laws, rules, and regulations will continue
                in
                effect in their current form. If that assumption materially changes
                and
                the change has a material detrimental effect on this Agreement, then
                the
                Bank reserves the right to terminate or modify this Agreement accordingly,
                subject to the written consent of the Executive, which shall not
                be
                unreasonably withheld. This Section 7.15 shall become null and void
                effective immediately upon an event that is considered a Change in
                Control. 

            

    

    

    ARTICLE
      8
      ADMINISTRATION OF AGREEMENT

    

    
      	
              8.1
                

            	
              Plan
                Administrator Duties. This Agreement shall be administered by a Plan
                Administrator consisting of the Bank’s Board of Directors or such
                Committee or person(s) as the Board shall appoint. The Executive
                may be a
                member of the Plan Administrator. The Plan Administrator shall also
                have
                the discretion and authority to (i) make, amend, interpret, and enforce
                all appropriate rules and regulations for the administration of this
                Agreement and (ii) decide or resolve any and all questions, including
                interpretations of this Agreement, as may arise in connection with
                the
                Agreement. 

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              8.2
                

            	
              Agents.
                In the administration of this Agreement, the Plan Administrator may
                employ
                agents and delegate to them such administrative duties as it sees
                fit
                (including acting through a duly appointed representative) and may
                from
                time to time consult with counsel, who may be counsel to the Bank.
                

            

    

    

    
      	
              8.3
                

            	
              Binding
                Effect of Decisions. The decision or action of the Plan Administrator
                with
                respect to any question arising out of or in connection with the
                administration, interpretation, and application of the Agreement
                and the
                rules and regulations promulgated hereunder shall be final and conclusive
                and binding upon all persons having any interest in the Agreement.
                No
                Executive or Beneficiary shall be deemed to have any right, vested
                or
                non-vested, regarding the continued use of any previously adopted
                assumptions, including but not limited to the Discount Rate and
                calculation method described in Section 1.1.

            

    

    

    
      	
              8.4
                

            	
              Indemnity
                of Plan Administrator. The Bank shall indemnify and hold harmless
                the
                members of the Plan Administrator against any and all claims, losses,
                damages, expenses, or liabilities arising from any action or failure
                to
                act with respect to this Agreement, except in the case of willful
                misconduct by the Plan Administrator or any of its members.
                

            

    

    

    
      	
              8.5

            	
              Bank
                Information. To enable the Plan Administrator to perform its functions,
                the Bank shall supply full and timely information to the Plan
                Administrator on all matters relating to the date and circumstances
                of the
                retirement, Disability, death, or Separation from Service of the
                Executive
                and such other pertinent information as the Plan Administrator may
                reasonably require. 

            

    

    

    ARTICLE
      9
      AGREEMENT NOT TO COMPETE

    

    
      	
              9.1
                

            	
              Covenant
                Not to Compete. 

            

    

    

    
      	 	
              (a)

            	
              Without
                advance written consent of the Bank, the Executive shall not compete
                directly or indirectly with the Bank for two years after Separation
                from
                Service, plus any period during which the Executive is in violation
                of
                this covenant not to compete and any period during which the Bank
                seeks by
                litigation to enforce this covenant not to
                compete.

            

    

    

    
      	 	
              (b)

            	
              If
                any provision of this Section or any word, phrase, clause, sentence
                or
                other portion thereof (including, without limitation, the geographical
                and
                temporal restrictions contained therein) is held to be unenforceable
                or
                invalid for any reason, the unenforceable or invalid provision or
                portion
                shall be modified or deleted so that the provisions hereof, as modified,
                are legal and enforceable to the fullest extent permitted under applicable
                law.

            

    

    

    
      	 	
              (c)

            	
              Definitions:
                For purposes of this Section the following definitions shall
                apply:

            

    

    

    
      	
            	(1)	
              “compete”
                shall mean: 

            

    

     

    
      	
            	(a)	
              providing
                financial products or services on behalf of any financial institution
                for
                any person residing in the
                territory,

            

    

    

    
      	 	
              (b)

            	
              assisting
                (other than through the performance of ministerial or clerical duties)
                any
                financial institution in providing financial products or services
                to any
                person residing in the territory,
                or

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (c)

            	
              inducing
                or attempting to induce any person who was a customer of the Bank
                at the
                date of the Executive’s termination of employment to seek financial
                products or services from another financial
                institution.

            

    

    

    
      	 	
              (2)

            	
              “directly
                or indirectly” shall mean:

            

    

    

    
      	 	
              (a)

            	
              acting
                as a consultant, officer, director, independent contractor, or employee
                of
                any financial institution in competition with the Bank in the territory,
                or

            

    

    

    
      	 	
              (b)

            	
              communicating
                to such financial institution the names or addresses or any financial
                information concerning any person who was a customer of the Bank
                at the
                date of the Executive’s Separation from
                Service.

            

    

    

    
      	 	
              (3)

            	
              “customer”
                shall mean any person to whom the Bank is providing financial products
                or
                services at the date of the Executive’s Separation from
                Service.

            

    

    

    
      	 	
              (4)

            	
              “financial
                institution” shall mean any bank, savings association, or bank or savings
                association hold company, or any other institution, the business
                of which
                is engaging in activities that are financial in nature or incidental
                to
                such financial activities as described in Section 4(k) of the Bank
                Holding
                Company Act of 1956, other than the Bank or one of its affiliated
                corporations.

            

    

    

    
      	
            	(5)	
              “financial
                product or service” shall
                mean any product or service that a financial institution or a financial
                holding company could offer by engaging in any activity that is financial
                in nature or incidental to such a firm’s activity under Section 4(k) of
                the Bank Holding Company Act of 1956 and that is offered by the Bank
                or
                any affiliate on the date of the Executive’s Separation from Service,
                including but not limited to banking activities that are closely
                related
                and a proper incident to banking. 

            

    

    

    
      	 	
              (6)

            	
              “person”
                shall mean any individual or individuals, corporation, partnership,
                fiduciary or association.

            

    

    

    
      	 	
              (7)

            	
              “territory”
                shall mean all of Forsyth, Guilford, Iredell, Rockingham, Surry,
                Stokes,
                and Yadkin Counties in North Carolina and the area within a 15-mile
                radius
                of any full-service banking office of the Bank at the date of Executive’s
                Separation from Service.

            

    

    

    
      	
              9.2
                

            	
              Remedies.
                Because of the unique character of the services to be rendered by
                the
                Executive hereunder, the Executive understands that the Bank would
                not
                have an adequate remedy at law for the material breach or threatened
                breach by the Executive of any one or more of the Executive’s covenants
                set forth in this Article 9. Accordingly, the Executive agrees that
                the
                Bank’s remedies for a material breach or threatened breach of this Article
                9 include but are not limited to forfeiture of benefits under this
                Agreement and a suit in equity by the Bank to enjoin the Executive
                from
                the breach or threatened breach of such covenants. The Executive
                hereby
                waives the claim or defense that an adequate remedy at law is available
                to
                the Bank and the Executive agrees not to urge in any such action
                the claim
                or defense that an adequate remedy at law exists. Nothing herein
                shall be
                construed to prohibit the Bank from pursuing any other remedies for
                the
                breach or threatened breach. 

            

    

    

    
      	
              9.3
                

            	
              Article
                9 Survives Termination But Is Void After a Change in Control. The
                rights
                and obligations set forth in this Article 9 shall survive termination
                of
                this Employment Agreement. However, Article 9 shall become null and
                void
                effective immediately upon a Change in Control.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Executive and a duly authorized officer of the Bank have
      executed this Amended Salary Continuation Agreement as of this 16th
      day
      of
March,
      2007.

     

    
      
        	EXECUTIVE: 	 	 	Southern Community Bank and
                Trust:
	 	 	 	 
	 	 	 	 
	x
/s/
                F. Scott Bauer	 	
              	
                 By:
/s/
                  Jeff T. Clark

              
	
                

                F.
                  Scott Bauer 

              	 	 	
                
                  

                

                Corporate
                  Title: President

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