Document:

Exhibit 10.20(a)

 

FIRST AMENDMENT TO

SALARY CONTINUATION AGREEMENT

 

THIS AMENDMENT (the
“Amendment”) is adopted March 29, 2016, by First South Bank, located in Washington, North Carolina (the “Employer”),
and Bruce W. Elder (the “Executive”).

 

The Employer and the
Executive executed a Salary Continuation Agreement dated June 3, 2014 (the “Agreement”) which provides deferred compensation
benefits to the Executive under certain circumstances. The parties wish to amend the Agreement to increase the benefits provided
pursuant to the Agreement. The parties agree and acknowledge that this Amendment (i) shall be interpreted in accordance with Internal
Revenue Code Section 409A and (ii) increases the amount of benefits provided under the Agreement, but does not change the payment
schedule thereunder.

 

NOW, THEREFORE, the
Employer and the Executive adopt the following amendments to the Agreement:

 

Section 2.1 of the
Agreement shall be deleted and replaced by the following:

 

2.1           Normal
Retirement Benefit. Upon Separation from Service after Normal Retirement Age, the Employer shall pay the Executive an annual
benefit in the amount of Forty-Two Thousand Dollars ($42,000) in lieu of any other benefit hereunder. The annual benefit will be
paid in equal monthly installments commencing the month following Separation from Service and continuing for fifteen (15) years,
subject to the conditions and limitations hereinafter set forth.

 

Sections 2.4, 2.5
and 2.6 of the Agreement shall be deleted and replaced by the following:

 

2.4           Change
in Control Benefit. If a Change in Control occurs, followed within twenty-four (24) months by Separation of Service prior to
Normal Retirement Age, the Employer shall pay the Executive an annual benefit in the amount of Forty-Two Thousand Dollars ($42,000)
in lieu of any other benefit hereunder. The annual benefit will be paid in equal monthly installments commencing the month following
Normal Retirement Age and continuing for fifteen (15) years.

 

2.5           Death
Prior to Separation from Service and Disability. In the event the Executive dies prior to Separation from Service and
Disability, the Employer shall pay the Beneficiary an annual benefit in the amount of Forty-Two Thousand Dollars ($42,000) in lieu
of any other benefit hereunder. The annual benefit will be paid in equal monthly installments commencing the month following the
Executive’s death and continuing for fifteen (15) years.

 

     

     

    

  

2.6           Death
after Separation from Service or Disability and before Normal Retirement Age.  In the event the Executive dies after Separation
from Service or Disability, and before Normal Retirement Age, the Employer shall pay the Beneficiary an annual benefit in the amount
of Forty-Two Thousand Dollars ($42,000) in lieu of any other benefit hereunder. The annual benefit will be paid in equal monthly
installments commencing the month following the Executive’s death and continuing for fifteen (15) years.

 

The Schedule A originally
attached to the Agreement shall be replaced by the Schedule A attached hereto.

 

IN WITNESS WHEREOF,
the Executive and a duly authorized representative of the Employer have executed this Amendment as indicated below:

 

	Executive	 	Employer
	 	 	 
	/s/ Bruce W. Elder	 	By:	/s/ L. Steven Lee
	 	 	Its:	Compensation Committee Chairman

 

     

     

    

 

Salary Continuation Plan

Schedule A - Exhibit 10.20(a)

 

	Bruce W. Elder	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Birth
    Date: xx/xx/1962	 	 	 	Early
    Termination	 	 	Disability	 	 	Change
    in Control	 	 	Death	 
	

Plan Anniversary Date: Dec. 31 

Normal Retirement Date:
 05/12/2027, Age 65 

Normal Retirement Payment:
 Monthly for 15 Years

 	 	 	 	 	Amount Payable
    Monthly 
 for 15 Years Upon 
 Separation	 	 	Amount Payable
    Monthly 
 for 15 Years Upon 
 Separation	 	 	Amount Payable
    Lump 
 Sum Upon Death	 
	Values As Of	 	Age	 	Annual
    Benefit 1	 	 	Annual
    Benefit 1,2	 	 	Annual
    Benefit 1,2	 	 	Annual
    Benefit 1,2	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4/1/2016	 	53	 	 	0	 	 	 	5,327	 	 	 	42,000	 	 	 	42,000	 
	12/31/2016	 	54	 	 	0	 	 	 	8,480	 	 	 	42,000	 	 	 	42,000	 
	12/31/2017	 	55	 	 	0	 	 	 	12,205	 	 	 	42,000	 	 	 	42,000	 
	12/31/2018	 	56	 	 	16,334	 	 	 	16,334	 	 	 	42,000	 	 	 	42,000	 
	12/31/2019	 	57	 	 	19,977	 	 	 	19,977	 	 	 	42,000	 	 	 	42,000	 
	12/31/2020	 	58	 	 	23,442	 	 	 	23,442	 	 	 	42,000	 	 	 	42,000	 
	12/31/2021	 	59	 	 	26,739	 	 	 	26,739	 	 	 	42,000	 	 	 	42,000	 
	12/31/2022	 	60	 	 	29,876	 	 	 	29,876	 	 	 	42,000	 	 	 	42,000	 
	12/31/2023	 	61	 	 	32,859	 	 	 	32,859	 	 	 	42,000	 	 	 	42,000	 
	12/31/2024	 	62	 	 	35,698	 	 	 	35,698	 	 	 	42,000	 	 	 	42,000	 
	12/31/2025	 	63	 	 	38,398	 	 	 	38,398	 	 	 	42,000	 	 	 	42,000	 
	12/31/2026	 	64	 	 	40,967	 	 	 	40,967	 	 	 	42,000	 	 	 	42,000	 
	5/12/2027	 	65	 	 	42,000	 	 	 	42,000	 	 	 	42,000	 	 	 	42,000	 

 

The first line represents the plan values as of April 1, 2016.

1 The annual benefit amount will be distributed in
12 equal monthly payments for a total of 180 monthly payments.

2 Note that accounting rules may require an additional
accrual at the time this benefit is triggered.

 

IF THERE IS A CONFLICT BETWEEN THIS SCHEDULE A AND THE AGREEMENT,
THE TERMS AND PROVISIONS OF THE AGREEMENT SHALL PREVAIL. IF A TRIGGERING EVENT OCCURS, REFER TO THE AGREEMENT TO DETERMINE THE
ACTUAL BENEFIT AMOUNT BASED ON THE DATE OF THE EVENT.

  

	Bruce W. Elder: 	/s/ Bruce W. Elder	 	By:	/s/ L. Steven Lee

 

	Date:  	3/29/16	 	Title: Chairman Compensation Committee

 

	 	 	Date:	3/29/16Exhibit 10.22(a)

 

FIRST AMENDMENT TO

SALARY CONTINUATION AGREEMENT

 

THIS AMENDMENT (the
“Amendment”) is adopted March 29, 2016, by First South Bank, located in Washington, North Carolina (the “Employer”),
and Scott C. McLean (the “Executive”).

 

The Employer and the
Executive executed a Salary Continuation Agreement dated June 3, 2014 (the “Agreement”) which provides deferred compensation
benefits to the Executive under certain circumstances. The parties wish to amend the Agreement to increase the benefits provided
pursuant to the Agreement. The parties agree and acknowledge that this Amendment (i) shall be interpreted in accordance with Internal
Revenue Code Section 409A and (ii) increases the amount of benefits provided under the Agreement, but does not change the payment
schedule thereunder.

 

NOW, THEREFORE, the
Employer and the Executive adopt the following amendments to the Agreement:

 

Section 2.1 of the
Agreement shall be deleted and replaced by the following:

 

2.1           Normal
Retirement Benefit. Upon Separation from Service after Normal Retirement Age, the Employer shall pay the Executive an annual
benefit in the amount of Twenty-Seven Thousand Dollars ($27,000) in lieu of any other benefit hereunder. The annual benefit will
be paid in equal monthly installments commencing the month following Separation from Service and continuing for fifteen (15) years,
subject to the conditions and limitations hereinafter set forth.

 

Sections 2.4, 2.5
and 2.6 of the Agreement shall be deleted and replaced by the following:

 

2.4           Change
in Control Benefit. If a Change in Control occurs, followed within twenty-four (24) months by Separation of Service prior to
Normal Retirement Age, the Employer shall pay the Executive an annual benefit in the amount of Twenty-Seven Thousand Dollars ($27,000)
in lieu of any other benefit hereunder. The annual benefit will be paid in equal monthly installments commencing the month following
Normal Retirement Age and continuing for fifteen (15) years.

 

2.5           Death
Prior to Separation from Service and Disability. In the event the Executive dies prior to Separation from Service and
Disability, the Employer shall pay the Beneficiary an annual benefit in the amount of Twenty-Seven Thousand Dollars ($27,000) in
lieu of any other benefit hereunder. The annual benefit will be paid in equal monthly installments commencing the month following
the Executive’s death and continuing for fifteen (15) years.

 

     

     

    

  

2.6           Death
after Separation from Service or Disability and before Normal Retirement Age. In the event the Executive dies after Separation
from Service or Disability, and before Normal Retirement Age, the Employer shall pay the Beneficiary an annual benefit in the amount
of Twenty-Seven Thousand Dollars ($27,000) in lieu of any other benefit hereunder. The annual benefit will be paid in equal monthly
installments commencing the month following the Executive’s death and continuing for fifteen (15) years.

 

The Schedule A originally
attached to the Agreement shall be replaced by the Schedule A attached hereto.

 

IN WITNESS WHEREOF,
the Executive and a duly authorized representative of the Employer have executed this Amendment as indicated below:

 

	Executive	 	Employer
	 	 	 	 
	/s/ Scott C. McLean	 	By:	/s/ L. Steven Lee
	 	 	Its:	Compensation Committee Chairman

 

     

     

    

  

Salary Continuation Plan

Schedule A - Exhibit 10.22(a)

  

	Scott McLean	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Birth Date:  xx/xx/1964	 	 	 	Early Termination	 	 	Disability	 	 	Change in Control	 	 	Death	 
	Plan Anniversary Date: Dec. 31 

Normal Retirement Date:
 05/11/2029, Age 65 

Normal Retirement Payment:
 Monthly for 15 Years

	 	 	 	 	Amount
    Payable     Monthly 
 for 15 Years Upon
 Separation	 	 	Amount
    Payable     Monthly 
 for 15 Years Upon
 Separation	 	 	Amount Payable
    Lump
 Sum Upon Death	 
	Values As Of	 	Age	 	Annual
    Benefit 1	 	 	Annual
    Benefit 1,2	 	 	Annual
    Benefit 1,2	 	 	Annual
    Benefit 1,2	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4/1/2016	 	51	 	 	0	 	 	 	3,104	 	 	 	27,000	 	 	 	27,000	 
	12/31/2016	 	52	 	 	0	 	 	 	4,927	 	 	 	27,000	 	 	 	27,000	 
	12/31/2017	 	53	 	 	0	 	 	 	7,253	 	 	 	27,000	 	 	 	27,000	 
	12/31/2018	 	54	 	 	9,466	 	 	 	9,466	 	 	 	27,000	 	 	 	27,000	 
	12/31/2019	 	55	 	 	11,572	 	 	 	11,572	 	 	 	27,000	 	 	 	27,000	 
	12/31/2020	 	56	 	 	13,575	 	 	 	13,575	 	 	 	27,000	 	 	 	27,000	 
	12/31/2021	 	57	 	 	15,480	 	 	 	15,480	 	 	 	27,000	 	 	 	27,000	 
	12/31/2022	 	58	 	 	17,293	 	 	 	17,293	 	 	 	27,000	 	 	 	27,000	 
	12/31/2023	 	59	 	 	19,017	 	 	 	19,017	 	 	 	27,000	 	 	 	27,000	 
	12/31/2024	 	60	 	 	20,658	 	 	 	20,658	 	 	 	27,000	 	 	 	27,000	 
	12/31/2025	 	61	 	 	22,219	 	 	 	22,219	 	 	 	27,000	 	 	 	27,000	 
	12/31/2026	 	62	 	 	23,703	 	 	 	23,703	 	 	 	27,000	 	 	 	27,000	 
	12/31/2027	 	63	 	 	25,116	 	 	 	25,116	 	 	 	27,000	 	 	 	27,000	 
	12/31/2028	 	64	 	 	26,460	 	 	 	26,460	 	 	 	27,000	 	 	 	27,000	 
	5/11/2029	 	65	 	 	27,000	 	 	 	27,000	 	 	 	27,000	 	 	 	27,000	 

 

The first line represents the plan values as of April 1, 2016.

1 The annual benefit amount will be distributed in
12 equal monthly payments for a total of 180 monthly payments.

2 Note that accounting rules may require an additional
accrual at the time this benefit is triggered.

 

IF THERE IS A CONFLICT BETWEEN THIS SCHEDULE A AND THE AGREEMENT,
THE TERMS AND PROVISIONS OF THE AGREEMENT SHALL PREVAIL. IF A TRIGGERING EVENT OCCURS, REFER TO THE AGREEMENT TO DETERMINE THE
ACTUAL BENEFIT AMOUNT BASED ON THE DATE OF THE EVENT.

 

	Scott McLean:  	/s/ Scott McLean	 	By:	/s/ L. Steven Lee

 

	Date:	3/29/16	 	Title: Chairman Compensation Committee

 

	 	 	 	 	Date: 	3/29/16

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