Document:

Description of Executive Compensation arrangements.

 EXHIBIT 10.16 
  
 Description of Named Executive Officer Compensation 
  
 Total compensation to the named executive officers (as defined in Securities
and Exchange Commissions Regulation S-K Item 402(a)(3)) of Crescent Banking Company (the “Company”) and its subsidiary Crescent Bank & Trust Company (the “Bank”) is primarily composed of three types of compensation: (1) base
salary, (2) short-term annual cash incentive compensation, and (3) long-term equity-based compensation awarded under the Company’s 1993 Employee Stock Option Plan and 2001 Long-Term Incentive Plan (collectively, the “Long-Term Incentive
Plans”). 
  
 Base Salary 
  
 Individual base salaries and increases for the Company’s named
executive officers, other than the President and Chief Executive Officer, are recommended annually by the Chief Executive Officer to the Compensation Committee and are determined by the Company’s Board of Directors, upon recommendation by the
Compensation Committee. The philosophy of the Company is that compensation should be based on individual annual performance and the performance of the Company, and should be competitive with the market. With respect to the Chief Executive Officer,
the Compensation Committee reviews the financial performance of the Company as well as published data regarding compensation of chief executive officers of comparable financial institutions located in comparable markets and of local banks and
thrifts. The Compensation Committee recommends the compensation of the Chief Executive Officer to the Board of Directors for final approval. The approval process takes place without the presence of the Chief Executive Officer. 
  
 Set forth below are the 2005 base salaries of the following named executive
officers of the Company. Base salaries paid in 2004 are also shown for comparison. 
  

							
	 Named Executive Officer

	  	2005

	  	2004

	 J. Donald Boggus, Jr.
	  	$	250,000	  	$	225,000
	 A. Bradley Rutledge, Sr.
	  	 	150,000	  	 	105,000
	 Anthony N. Stancil
	  	 	160,000	  	 	140,961
	 Leland W. Brantley, Jr.
	  	 	145,000	  	 	120,000
	 Gary Reece (1)
	  	 	165,000	  	 	155,000
	 Robert C. KenKnight (2)
	  	 	—  	  	 	168,758
	 Michael P. Leddy
	  	 	—  	  	 	—  

	(1)	Mr. Reece resigned from his position with the Company effective February 15, 2005. 

	(2)	Pursuant to an agreement between the Company and Mr. KenKnight, Mr. KenKnight is entitled to be paid 18.5% of certain receivables related to the wholesale mortgage banking business,
which the Company sold on December 31, 2003. Mr. KenKnight will not be compensated by the Company or any subsidiary in 2005 other than pursuant to this arrangement; consequently, his salary was not, and in the future will not be, determined in the
same fashion as the salaries of the other named executive officers. 

  
 Short-Term Annual Cash Incentive Compensation 
  
 Short-term annual cash incentive compensation in the form of bonuses is intended to align short-term cash compensation of eligible Company officers with individual performance and Company performance. The Compensation Committee, using
recommendations of the Chief Executive Officer, approves annual bonus payments to those officers who have made superior contributions to the Company’s profitability, as measured and reported through individual performance goals established at
the beginning of the year. This philosophy controls compensation expenses and rewards past performance by reducing the need for significant annual base salary increases. 

 Set forth below are the annual cash bonuses paid to the Company’s named executive officers for the
year ended December 31, 2004. 
  

				
	 Named Executive Officer

	  	2004

	 J. Donald Boggus, Jr.
	  	$	45,000
	 A. Bradley Rutledge, Sr.
	  	 	20,000
	 Anthony N. Stancil (1)
	  	 	99,000
	 Leland W. Brantley, Jr.
	  	 	27,000
	 Gary Reece (2)
	  	 	27,000
	 Robert C. KenKnight
	  	 	—  
	 Michael P. Leddy (3)
	  	 	795,610

	(1)	The bonus awarded to Mr. Stancil consisted of $44,000 in accrued bonuses earned at Regions Bank of Cherokee and $40,000 in bonuses Mr. Stancil would have earned had he remained at
Regions Bank of Cherokee, both of which the Bank agreed to pay in connection with his accepting employment at the Bank, and $15,000 in bonuses earned during his employment at the Bank. Only $15,000 of the bonus awarded to Mr. Stancil in 2004 was
determined in accordance with Company policy and procedures. 

	(2)	Mr. Reece resigned from his position with the Company effective February 15, 2005. 

	(3)	Pursuant to an agreement between the Company and Mr. Leddy, Mr. Leddy was entitled to be paid 5% of certain receivables related to the wholesale mortgage banking business, which the
Company sold on December 31, 2003, plus $750,000 in lieu of accelerating the vesting of certain shares of restricted stock owned by Mr. Leddy that were cancelled in connection with his termination. The payment reflects $750,000 related to the
restricted stock and $45,610 related to the accounts receivable. Mr. Leddy will not be compensated by the Company in 2005 other than pursuant to this agreement; consequently, his short-term compensation was not, and in the future will not be,
determined in the same fashion as the incentive compensation of other named executive officers. 

  
 Annual cash bonuses for 2005 will be determined in late 2005 or early 2006. The Company expects individual 2005 bonuses to be determined using the same
criteria as applied to determine 2004 bonuses. 
  
 Long-Term Equity-Based
Compensation 
  
 The Company attempts to align the interests
of key employees, including its named executive officers, with those of the Company’s shareholders by awarding stock options to these employees under the Company’s Long-Term Incentive Plans. Stock options are awarded annually, upon the
recommendation of the Company’s Chief Executive Officer and approval of the Compensation Committee, to eligible employees who have made a significant contribution to the Company’s long-term growth. During 2004, the Company awarded 40,000
stock options to 10 individuals. 
  

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 Set forth below are stock options granted to the Company’s named executive officers for the year
ended December 31, 2004. 
  

			
	 Named Executive Officer

	  	Securities Underlying
Stock Options

	 J. Donald Boggus, Jr.
	  	5,000
	 A. Bradley Rutledge, Sr.
	  	2,500
	 Anthony N. Stancil
	  	12,500
	 Leland W. Brantley, Jr.
	  	4,000
	 Gary Reece
	  	4,000
	 Robert C. KenKnight
	  	—  
	 Michael P. Leddy
	  	—  

  
 No stock options or
restricted stock awards have been granted for 2005 as of March 18, 2005. The Company expects individual grants during 2005 under its Long-Term Incentive Plans to be determined using the same criteria as applied to determine grants in 2004.
Additional information relating to the Company’s Long-Term Incentive Plans and grants of stock options during 2004 will be included in the Company’s 2005 Proxy Statement to be filed with the Commission on Schedule 14A. 
  
 Other Compensation 
  
 In addition to base salary, short-term annual cash incentive compensation and long-term equity-based compensation, certain
officers of the Company and the Bank, including the named executive officers, receive compensation in the form of split-dollar life insurance for which the Company or the Bank pays the premiums. Certain officers, including the named executive
officers, may also participate in the Executive Supplemental Retirement Plan, the benefits of which are funded from life insurance purchased and owned by the Company or the Bank. The compensation paid to the Company’s named executive officers
under these compensation arrangements during 2004 will be set forth under “Other Compensation” in the Summary Compensation Table of the Company’s 2005 Proxy Statement to be filed with the Commission on Schedule 14A. 
  

 - 3 -Non-Qualified Stock Option Agreement

 EXHIBIT 10.17 
  
 NON-QUALIFIED STOCK OPTION AGREEMENT 
 under the 
 CRESCENT BANKING COMPANY 
 2001 NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN 
  

			
	Grantee:
        <Name>                              
                                    
	
	Number Shares Subject to Option:
        <Shares>                        
	
	Exercise Price per Share:
                <Price>                      
          
	
	Date of Grant:
                        <Date>              
                              

  
 1. Grant of
Option. The Company hereby grants to the Grantee named above (the “Grantee”), under the Crescent Banking Company 2001 Non-Employee Director Stock Option Plan (the “Plan”), a non-qualified stock option to purchase, on the
terms and conditions set forth in this agreement (this “Option Agreement”), the number of shares indicated above of the Company’s Common Stock (the “Common Stock”), at the exercise price per share set forth above (the
“Option”). Capitalized terms used herein and not otherwise defined shall have the meanings assigned such terms in the Plan. 
  
 2. Vesting of Option. The Option shall be fully vested and immediately exercisable, in whole or in part, on the date of grant. 
  
 3. Period of Option and Limitations on Right to Exercise. The Option
will, to the extent not previously exercised, lapse under the earliest of the following circumstances: 
  
 (a) Final Expiration Date. The Option shall lapse as of 5:00 p.m., Eastern Time, on the tenth anniversary of the date of grant (the
“Expiration Date”). 
  
 (b)
Termination of Directorship. Upon termination of the Grantee’s membership on the Board of Directors of the Company for any reason other than for cause, the Option shall lapse on the Expiration Date. If the Grantee’s membership on
the Board of Directors is terminated for cause, the Option shall lapse on the date of such termination of directorship. 
  
 4. Exercise of Option. The Option shall be exercised by written notice directed to the Secretary of the Company at the principal executive offices
of the Company, in substantially the form attached hereto as Exhibit A, or such other form as the Committee may approve. The option price shall be payable in full upon the exercise of an option in cash. To the extent permitted under Regulation T of
the Federal Reserve Board, and subject to applicable securities laws and the Company’s adoption of such program in connection with the Plan, options may be exercised through a broker in a so-called “cashless exercise” whereby the
broker sells the option shares and delivers cash sales 

 proceeds to the Company in payment of the exercise price. In such case, the date of exercise shall be deemed to be the
date on which notice of exercise is received by the Company, and the exercise price shall be delivered to the Company on the settlement date. 
  
 5. Delivery of Certificates. The Company shall make delivery of certificates representing the shares for which the Option has been exercised within
a reasonable period of time; provided, however, that if any law, regulation or agreement requires the Company to take any action with respect to the shares for which an option has been exercised before the issuance thereof, then the date of delivery
of such shares shall be extended for the period necessary to take such action. Certificates representing shares for which options are exercised under the Plan may bear such restrictive legends as may be necessary or desirable in order to comply with
applicable federal and state securities laws. 
  
 6. Limitation
of Rights. The Option does not confer to the Grantee or the Grantee’s personal representative any rights of a shareholder of the Company unless and until shares of Common Stock are in fact issued to such person in connection with the
exercise of the Option. 
  
 7. Transferability of Option.
The Option may not be pledged, encumbered, or hypothecated to or in favor of any party other than the Company or the Bank, or be subject to any lien, obligation, or liability of the Grantee to any other party other than the Company or the Bank. The
Option is assignable or transferable by the Grantee by will, by the laws of descent and distribution, or pursuant to a domestic relations order that would satisfy Section 414(p)(1)(A) of the Internal Revenue Code of 1986, as amended, if such
provision applied to an option under the Plan. In addition, the Option is transferable by the Grantee to any of the following permitted transferees, upon such reasonable terms and conditions as the Board of Directors may establish: any child,
stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, any person sharing
the Grantee’s household (other than a tenant or employee), a trust in which these persons (or the Grantee) have more than fifty percent of the beneficial interests, a foundation in which these persons (or the Grantee) control the management of
assets, and any other entity in which these persons (or the Grantee) own more than fifty percent of the voting interests. The Option may be exercised during the lifetime of the Grantee only by the Grantee or any permitted transferee. 
  
 8. Restrictions on Issuance of Shares. If at any time the Board shall
determine in its discretion, that listing, registration or qualification of the shares of Common Stock covered by the Option upon any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory
body, is necessary or desirable as a condition to the exercise of the Option, the Option may not be exercised in whole or in part unless and until such listing, registration, qualification, consent or approval shall have been effected or obtained
free of any conditions not acceptable to the Board. 
  

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 9. Plan Controls. The terms contained in the Plan are incorporated into and made a part of this
Option Agreement and this Option Agreement shall be governed by and construed in accordance with the Plan. In the event of any actual or alleged conflict between the provisions of the Plan and the provisions of this Option Agreement, the provisions
of the Plan shall be controlling and determinative. 
  
 10.
Successors. This Option Agreement shall be binding upon any successor of the Company, in accordance with the terms of this Option Agreement and the Plan. 
  

11. Severability. If any one or more of the provisions contained in this Option Agreement are invalid, illegal or unenforceable, the other
provisions of this Option Agreement will be construed and enforced as if the invalid, illegal or unenforceable provision had never been included. 
  
 12. Notice. Notices and communications under this Option Agreement must be in writing and either personally delivered or sent by registered or
certified United States mail, return receipt requested, postage prepaid. Notices to the Company must be addressed to: 
  

	
	Crescent Banking Company
	251 Highway 515
	Jasper, Georgia 30143
	Attn: Corporate Secretary

  
 or any other address designated by the
Company in a written notice to the Grantee. Notices to the Grantee will be directed to the address of the Grantee then currently on file with the Company, or at any other address given by the Grantee in a written notice to the Company. 

 
 IN WITNESS WHEREOF, Crescent Banking Company, acting by and through its
duly authorized officers, has caused this Option Agreement to be executed, and the Grantee has executed this Option Agreement, all as of the day and year first above written. 
  

			
	CRESCENT BANKING COMPANY
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	GRANTEE:
	
	  

  

 - 3 - 

 EXHIBIT A 
  

NOTICE OF EXERCISE OF OPTION TO PURCHASE 
 COMMON STOCK OF CRESCENT BANKING COMPANY 
  

	
	Name
	_____________________________________________
	Address:
	_____________________________________________
	_____________________________________________
	Date
	_____________________________________________

  
 Crescent Banking Company

 251 Highway 515 
 Jasper, Georgia 30143 
 Attn: Corporate Secretary 
  

	Re:	Exercise of Non-Qualified Stock Option 

  
 I elect to purchase
                         shares of Common Stock of Crescent Banking Company (“Common Stock”) pursuant to the
Crescent Banking Company Non-Qualified Stock Option Agreement dated                      and the Crescent Banking Company 2001 Non-Employee
Director Stock Option Plan. The purchase will take place on the Exercise Date which will be as soon as practicable following the date this notice and all other necessary forms and payments are received by the Company, unless I specify a later date
(not to exceed 30 days following the date of this notice). 
  
 On
or before the Exercise Date, I will pay the full exercise price in the form specified below (check one): 
  

	 	 ̈	Cash: by delivering a check to Crescent Banking Company for $
                    . 

  

	 	 ̈	Cash From Broker: by delivering the purchase price from a broker, dealer or other “creditor” as defined by Regulation T issued by the Board of Governors of the
Federal Reserve System (the “Broker”). I authorize the Company to issue a stock certificate in the number of shares indicated above in the name of the Broker in accordance with instructions received by the Company from the Broker and to
deliver such stock certificate directly to the Broker (or to any other party specified in the instructions from the Broker) upon receiving the exercise price from the Broker. 

 Please deliver the stock certificate to me (unless I have chosen to pay the purchase price through a
broker). 
  

	
	Very truly yours,
	  
  

  

			
	AGREED TO AND ACCEPTED:
	
	Crescent Banking Company
		
	By:	 	  

		
	Title:	 	  

			
	
	Number of Option Shares
	Exercised:	 	  

	
	Number of Option Shares

			
	Remaining:	 	  

			
		
	Date:	 	  

  

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