Document:

EXHIBIT
      10(xx)

     

    Amended
      Employment Agreement

    

    This
      Amended
      Employment Agreement
      (this
“Agreement”) is entered into effective as of this24 day of October, 2007, by and
      among W. Keith Betts (the “Executive”),
      Crescent Financial Corporation, a North Carolina corporation (the
“Corporation”), and Crescent State Bank, a North Carolina-chartered bank and
      wholly owned subsidiary of the Corporation (the “Bank”). The Corporation and the
      Bank are hereinafter sometimes referred to together or individually as
“Employer.”

    

    Whereas,
      the
      Executive possesses unique skills, knowledge, and experience relating to the
      banking business and is expected to make significant contributions to the
      profitability, growth, and financial strength of the Corporation and
      affiliates,

    

    Whereas,
      Employer desires to assure itself of the continuity of management and desires
      to
      establish minimum severance benefits for certain of its officers and other
      key
      employees,

    

    Whereas,
      Employer desires to provide additional inducement for the Executive to remain
      in
      the employ of the Employer,

    

    Whereas,
      the
      Executive, the Corporation, and Port City Capital Bank, a wholly owned
      subsidiary of the Corporation that has merged into the Bank, are parties to
      an
      Employment Agreement dated as of September 1, 2006, but the Executive and the
      Employer intend that this Agreement restate the previous employment agreement
      in
      its entirety, incorporating into this Agreement the terms of the September
      1,
      2006 Employment Agreement as amended hereby, and

    

    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 [12 U.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 Employer, is contemplated insofar as Employer or any
      affiliates are concerned.

    

    Now
      Therefore,
      in
      consideration of these premises, the mutual covenants contained herein, and
      other good and valuable consideration the receipt and sufficiency of which
      are
      hereby acknowledged, the parties hereto agree as follows.

    

    Article
      1

    Employment

    

    1.1 Employment.
      The
      Executive shall serve as Executive Vice President of the Bank according to
      the
      terms and conditions of this Agreement. The Executive hereby accepts employment
      according to the terms and conditions of this Agreement and for the period
      stated in section 1.3.

    

    1.2 Duties.
      As
      Executive Vice President of the Bank, the Executive shall serve the Bank
      faithfully, diligently, competently, and to the best of the Executive’s ability.
      The Executive shall also serve as a non-voting member of the loan committee
      of
      the Bank’s board of directors. The Executive shall exclusively devote full time,
      energy, and attention to the promotion of the Bank’s interests throughout the
      term of this Agreement. During the two-year period commencing when Port City
      Capital Bank merges into the Bank, the Executive shall report to the President
      and Chief Executive Officer of the Bank or any successor thereto. Without the
      written consent of the Corporation’s board of directors, during the term of this
      Agreement the Executive shall not render services to or for any person, firm,
      corporation, or other entity or organization in exchange for compensation,
      regardless of the form in which such compensation is paid and regardless of
      whether it is paid directly or indirectly to the Executive. However, the
      Executive may serve with or without compensation as an officer or director
      of
      any charitable or civic organization. Nothing in this section 1.2 shall prevent
      the Executive from managing personal investments and affairs, however, provided
      that doing so does not interfere with the proper performance of the Executive’s
      duties.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    1.3 Term.
      The
      initial term of this Agreement shall be for a period of three years, commencing
      September 1, 2006. On the first anniversary of September 1, 2006 and on each
      anniversary thereafter this Agreement shall be extended automatically for one
      additional year unless the Bank’s board of directors determines that the term
      shall not be extended. If the board of directors determines not to extend the
      term, it shall promptly notify the Executive in writing. If the board of
      directors decides not to extend the term of this Agreement, this Agreement
      shall
      nevertheless remain in force until its term expires. The board of directors’
decision not to extend the term of this Agreement shall not – by
      itself – give the Executive any rights under this Agreement to claim an
      adverse change in his position, compensation, or circumstances or otherwise
      to
      claim entitlement to severance benefits under Article 4 of this Agreement.
      References herein to the term of this Agreement shall refer to the initial
      term,
      as the same may be extended. Unless sooner terminated, the Executive’s
      employment shall terminate when the Executive attains age 65.

    

    Article
      2

    Compensation
      and Other Benefits

    

    2.1 Base
      Salary.
      In
      consideration of the Executive’s performance of the obligations under this
      Agreement, Employer shall pay or cause to be paid to the Executive a salary
      at
      the annual rate of not less than $175,000, payable in monthly installments.
      The
      Executive’s salary shall be reviewed annually by the Compensation Committee of
      the Bank’s board of directors or by the board committee having jurisdiction over
      executive compensation. The Executive’s salary shall be increased no less
      frequently than annually to account for cost of living increases. The
      Executive’s salary also may be increased beyond the amount necessary to account
      for cost of living increases at the discretion of the committee having
      jurisdiction over executive compensation. However, the Executive’s salary shall
      not be reduced. The Executive’s salary, as the same may be increased from time
      to time, is referred to in this Agreement as the “Base
      Salary.”

    

    2.2 Benefit
      Plans and Perquisites.
      The
      Executive shall be entitled throughout the term of this Agreement to participate
      in any and all officer or employee compensation, bonus, incentive, and benefit
      plans in effect from time to time, including without limitation stock option
      plans and other stock-based compensation, incentive, bonus, or purchase plans,
      or plans providing pension, medical, dental, disability, and group life
      benefits, including Employer’s 401(k) Plan, and to receive any and all other
      fringe benefits provided from time to time, provided that the Executive
      satisfies the eligibility requirements for any such plans or
      benefits.

    

    (a) Club
      dues.
      During
      the term of this Agreement, the Employer shall pay or cause to be paid the
      Executive’s continued membership dues in civic and/or country clubs in an amount
      up to $750 per month.

    

    (b) Reimbursement
      of business expenses.
      The
      Executive shall be entitled to reimbursement for all reasonable business
      expenses incurred performing the Executive’s obligations under this Agreement,
      including but not limited to all reasonable business travel and entertainment
      expenses incurred while acting at the request of or in the service of Employer
      and reasonable expenses for attendance at annual and other periodic meetings
      of
      trade associations.

    

    2.3 Vacation.
      The
      Executive shall be entitled to paid annual vacation and sick leave in accordance
      with the policies established from time to time by Employer, but in no event
      fewer than four weeks of vacation per year. The Executive shall schedule at
      least five consecutive days of vacation per year. The timing of vacations shall
      be scheduled in a reasonable manner by the Executive. The Executive shall not
      be
      entitled to any additional compensation for failure to use allotted vacation
      or
      sick leave nor shall the Executive be entitled to accumulate unused sick leave
      from one year to the next, unless authorized by the Bank’s board of directors to
      do so.

    

    2.4 Supplemental
      Retirement Plan.
      The
      Bank and the Executive have entered into a Salary Continuation Agreement dated
      as of October 24, 2007. Unless the Salary Continuation Agreement explicitly
      provides otherwise, whether benefits are properly payable to the Executive
      under
      the Salary Continuation Agreement shall be determined solely by reference to
      that agreement, as the same may be amended.

    
      
        
        

      

      
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    Article
      3

    Employment
      Termination

    

    3.1 Termination
      because of Death or Disability.
      (a)
Death.
      The
      Executive’s employment shall terminate automatically on the date of the
      Executive’s death. If the Executive dies in active service to Employer, for 12
      months after the Executive’s death Employer shall assist the Executive’s family
      with continuing health care coverage under COBRA substantially identical to
      that
      provided before the Executive’s death. In addition, if the Executive’s
      employment terminates because of death the Executive’s estate shall be entitled
      to any payments owing under section 6.2, as provided in section
      6.2.

    

    (b) Disability.
      By
      delivery of written notice 30 days in advance to the Executive, Employer may
      terminate the Executive’s employment if the Executive is disabled. For purposes
      of this Agreement, the Executive shall be considered “disabled”
if
      an
      independent physician selected by Employer and reasonably acceptable to the
      Executive or the Executive’s legal representative determines that, because of
      illness or accident, the Executive is unable to perform the Executive’s duties
      for a period of 90 consecutive days. The Executive shall not be considered
      disabled, however, if the Executive returns to work on a full-time basis within
      30 days after Employer gives notice of termination due to disability. If the
      Executive’s employment terminates because of disability, the Executive shall
      receive the salary earned through the date on which termination became
      effective, any unpaid bonus or incentive compensation due to the Executive
      for
      the calendar year preceding the calendar year in which the termination became
      effective, any payments the Executive is eligible to receive under any
      disability insurance program in which the Executive participates, such other
      benefits to which the Executive may be entitled under Employer’s benefit plans,
      policies, and agreements, and any benefits provided for elsewhere in this
      Agreement. In addition, if the Executive’s employment terminates because of
      disability the Executive shall be entitled to any payments owing under section
      6.2, as provided in section 6.2.

    

    3.2 Involuntary
      Termination with Cause.
      Employer may terminate the Executive’s employment with Cause. If the Executive’s
      employment terminates with Cause, the Executive shall receive the salary to
      which the Executive was entitled through the date on which termination became
      effective and any other benefits to which the Executive may be entitled under
      Employer’s benefit plans and policies in effect on the termination date. For
      purposes of this Agreement “Cause”
means
      any of the following –

    

    (1) an
      intentional act of fraud, embezzlement, or theft by the Executive in the course
      of employment. 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 Employer’s best
      interests. 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, or

    

    (2) intentional
      violation by the Executive of any applicable law or significant policy of
      Employer that, in Employer’s reasonable judgement, results in an adverse effect
      on Employer, 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
      Employer, or

    
      
        
        

      

      
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    (3) the
      Executive’s gross negligence or gross neglect of duties in the performance of
      duties, or

    

    (4) intentional
      wrongful damage by the Executive to the business or property of Employer,
      including without limitation the reputation of Employer, which in Employer’s
      reasonable judgment causes material harm to Employer, or

    

    (5) a
      breach
      by the Executive of fiduciary duties or misconduct involving dishonesty, in
      either case whether in the Executive’s capacity as an officer or as a director,
      or

    

    (6) a
      breach
      by the Executive of this Agreement that, in the Employer’s reasonable judgment,
      is a material breach, which breach is not corrected by the Executive within
      10
      days after receiving written notice of the breach, or

    

    (7) removal
      of the Executive from office or permanent prohibition of the Executive 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),
      or

    

    (8) 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 for five consecutive days or more,
      or

    

    (9) the
      occurrence of any event that results in the Executive being excluded from
      coverage, or having coverage limited for the Executive as compared to other
      executives of the Bank, under the Bank’s blanket bond or other fidelity or
      insurance policy covering its directors, officers, or employees.

    

    3.3 Voluntary
      Termination by the Executive Without Good Reason.
      If the
      Executive terminates employment without Good Reason, the Executive shall receive
      the Base Salary and expense reimbursement to which the Executive is entitled
      through the date on which termination becomes effective, and any payments owing
      under section 6.2, as provided in section 6.2.

    

    3.4 Involuntary
      Termination Without Cause and Voluntary Termination with Good
      Reason.
      With
      written notice to the Executive 90 days in advance, the Employer may terminate
      the Executive’s employment without Cause. Termination shall take effect at the
      end of the 90-day period. With advance written notice to the Employer as
      provided in clause (y),
      the
      Executive may terminate employment for Good Reason. If the Executive’s
      employment terminates involuntarily without Cause or voluntarily but with Good
      Reason, the Executive shall be entitled to the benefits specified in Article
      4
      of this Agreement, except as may be provided in Article 4, and any payments
      owing under section 6.2, as provided in section 6.2. For purposes of this
      Agreement a voluntary termination by the Executive shall be considered a
      voluntary termination with Good Reason if the conditions stated in both clauses
      (x)
      and
      (y)
      are
      satisfied –

    

    (x) a
      voluntary termination by the Executive shall be considered a voluntary
      termination with Good Reason if any of the following occur without the
      Executive’s advance written consent, and the term Good Reason shall mean the
      occurrence of any of the following without the Executive’s advance written
      consent –

    

    (1) a
      material diminution of the Executive’s Base Salary,

    

    (2) a
      material diminution of the Executive’s authority, duties, or
      responsibilities,

    
      
        
        

      

      
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    (3) a
      material diminution in the authority, duties, or responsibilities of the
      supervisor to whom the Executive is required to report,

    

    (4) a
      material diminution in the budget over which the Executive retains
      authority,

    

    (5) a
      material change in the geographic location at which the Executive must perform
      services for the Employer, or

    

    (6) any
      other
      action or inaction that constitutes a material breach by the Employer of this
      Agreement.

    

    (y) the
      Executive must give notice to the Employer of the existence of one or more
      of
      the conditions described in clause (x)
      within
      90 days after the initial existence of the condition, and the Employer shall
      have 30 days thereafter to remedy the condition. In addition, the Executive’s
      voluntary termination because of the existence of one or more of the conditions
      described in clause (x)
      must
      occur within 12 months after the initial existence of the
      condition.

    

    Article
      4

    Severance
      Compensation

    

    4.1 Severance.
      If the
      Employer terminates the Executive’s employment without Cause or if the Executive
      voluntarily terminates employment for Good Reason, the Executive shall be
      entitled to –

    

    (a) Cash
      severance.
      A
      lump-sum severance payment in cash in the amount of two and one half times
      his
      Base Salary, payable within 30 days after the Executive’s employment
      termination. Cash severance compensation shall not be payable, however, if
      the
      Executive’s employment terminates after a Change in Control of the Corporation.
      For purposes of this Agreement a Change in Control means 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 –

    

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

    

    (2) Change
      in effective control:
      (x)
      any one
      person or more than one person acting as a group acquires within a 12-month
      period ownership of Corporation stock possessing 30% or more of the total voting
      power of Corporation stock, or (y)
      a
      majority of the 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 the Corporation’s board of directors, or

    

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

    

    (b) Cash-out
      of the value of unvested stock options.
      The
      Executive shall be entitled to receive from Employer an amount equal to the
      intrinsic value of any unvested stock options and the value of any unvested
      restricted stock or other equity-based compensation as of the effective date
      of
      termination. Amounts payable under this paragraph (b) shall be paid in a single
      lump sum in cash by the earlier of (x)
      90 days
      after the Executive’s employment termination or (y)
      March
      15 of the year after the year in which the Executive’s employment terminates.
      The intrinsic value of unvested stock options means the per share closing price
      of Corporation common stock on the date of the Executive’s employment
      termination less the per share exercise price of the unvested stock options,
      multiplied by the number of unvested options.

    
      
        
        

      

      
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        (c)
          Outplacement
          and support.
          Employer shall pay or cause to be paid to the Executive
          reasonable outplacement expenses in an amount up to $25,000, and for one
          year
          after termination Employer shall provide the Executive with the use of
          office
          space and reasonable office support facilities, including secretarial
          assistance.

      

    

    

    Article
      5

    Confidentiality
      and Creative Work

    

    5.1 Non-disclosure.
      The
      Executive covenants and agrees not to reveal to any person, firm, or corporation
      any confidential information of any nature concerning Employer or its business,
      or anything connected therewith. As used in this Article 5, the term
“confidential
      information”
means
      all of the Corporation’s and its affiliates’ confidential and proprietary
      information and trade secrets in existence on the date hereof or existing at
      any
      time during the term of this Agreement, including but not limited to
–

    

    (a) the
      whole
      or any portion or phase of any business plans, financial information, purchasing
      data, supplier data, accounting data, or other financial
      information,

    

    (b) the
      whole
      or any portion or phase of any research and development information, design
      procedures, algorithms or processes, or other technical
      information,

    

    (c) the
      whole
      or any portion or phase of any marketing or sales information, sales records,
      customer lists, prices, sales projections, or other sales information,
      and

    

    (d) trade
      secrets, as defined from time to time by the laws of the State of North
      Carolina.

    

    Despite
      anything to the contrary in this Agreement, confidential information excludes
      information that – as of the date hereof or at any time after the date
      hereof – is published or disseminated without obligation of confidence or
      that becomes a part of the public domain by or through action of Employer or
      otherwise than by or at the direction of the Executive. This section 5.1 does
      not prohibit disclosure required by an order of a court having jurisdiction
      or a
      subpoena from an appropriate governmental agency or disclosure made by the
      Executive in the ordinary course of business and within the scope of the
      Executive’s authority.

    

    5.2 Return
      of Materials.
      The
      Executive agrees to deliver or return to Employer upon employment termination
      or
      as soon thereafter as possible all written information and any other similar
      items furnished by Employer or prepared by the Executive in connection with
      the
      Executive’s services hereunder. The Executive will retain no copies thereof
      after termination of this Agreement or termination of the Executive’s
      employment.

    

    5.3 Injunctive
      Relief.
      The
      Executive acknowledges that it is impossible to measure in money the damages
      that will accrue to Employer if the Executive fails to observe the obligations
      imposed by this Article 5. Accordingly, if Employer institutes an action to
      enforce the provisions hereof, the Executive hereby waives the claim or defense
      that an adequate remedy at law is available to Employer, and the Executive
      agrees not to urge in any such action the claim or defense that an adequate
      remedy at law exists.

    

    5.4 Affiliates’
      Confidential Information is Covered; Confidentiality Obligation Survives
      Termination.
      For
      purposes of this Agreement, the term “affiliate”
of
      the
      Corporation includes but is not limited to the Bank, any bank successor to
      the
      Bank, and any entity that directly, or indirectly through one or more
      intermediaries, controls, is controlled by, or is under common control with
      the
      Bank. The rights and obligations set forth in this Article 5 shall survive
      termination of this Agreement.

    
      
        
        

      

      
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    5.5 Creative
      Work.
      The
      Executive agrees that all creative work and work product, including but not
      limited to all technology, business management tools, processes, software,
      patents, trademarks, and copyrights developed by the Executive during the term
      of this Agreement, regardless of when or where such work or work product was
      produced, constitutes work made for hire, all rights of which are owned by
      Employer. The Executive hereby assigns to the Corporation and to the Bank all
      rights, title, and interest, whether by way of copyrights, trade secret,
      trademark, patent, or otherwise, in all such work or work product, regardless
      of
      whether the same is subject to protection by patent, trademark, or copyright
      laws.

    

    Article
      6

    Competition
      After Employment Termination

     

    6.1 Covenant
      Not to Solicit Employees.
      The
      Executive agrees not to solicit the services of any officer or employee of
      the
      Employer for one year after the Executive’s employment termination.

    

    6.2 Covenant
      Not to Compete.
      (a) For
      and in consideration of the “payments” (as defined below), without advance
      written consent of the Employer the Executive covenants and agrees not to
      compete directly or indirectly with the Employer for the “non-compete term” (as
      defined below) after employment termination, plus any period during which the
      Executive is in violation of this covenant not to compete and any period during
      which the Employer seeks by litigation to enforce this covenant not to compete.
      For purposes of this section –

    

    (1) the
      term
“compete” means

    

    (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 Employer at the
      date of the Executive’s employment termination to seek financial products or
      services from another financial institution.

    

    (2) the
      words
“directly or indirectly” means –

    

    (a) acting
      as
      a consultant, officer, director, independent contractor, or employee of any
      financial institution, de
      novo
      institution in organization, or organizational group in competition or intending
      to be in competition with the Employer 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 Employer at the
      Executive’s employment termination.

    

    (3) the
      term
“customer” means any person to whom the Employer is providing financial products
      or services on the date of the Executive’s employment termination.

    

    (4) the
      term
“financial institution” means any bank, savings association, or bank or savings
      association holding 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 Employer or one of its affiliated
      corporations.

    
      
        
        

      

      
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    (5) “financial
      product or service” means 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 financial activity under section
      4(k) of the Bank Holding Company Act of 1956 and that is offered by the Employer
      or an affiliate on the date of the Executive’s employment termination, including
      but not limited to banking activities and activities that are closely related
      and a proper incident to banking.

    

    (6) the
      term
“person” means any individual or individuals, corporation, partnership,
      fiduciary, or association.

    

    (7) the
      term
“territory” means New Hanover County and any counties contiguous
      thereto.

    

    (8) the
      term
“non-compete term” shall be a period of two years if the Executive’s employment
      terminates before September 1, 2011; shall be a period of one year if the
      Executive’s employment terminates after September 1, 2011, but before September
      1, 2013; and after September 1, 2013, there shall be no period of time in which
      Executive is not permitted to “compete” as defined herein.

    

    (9) the
      term
“payments” shall mean the payment by the Employer of $78,333 to the Executive on
      September 1, 2006, and the payment of an equivalent amount on each of the first
      two anniversaries of that date.

    

    (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.

    

    6.3 Specific
      Performance.
      The
      Executive’s covenants contained in Article 6 shall survive termination of the
      Executive’s employment for any reason, and shall be enforceable after such
      termination. Without intending to limit the remedies available to the
      Corporation and the Bank, the Executive agrees that damages at law are an
      insufficient remedy for violation by the Executive of the covenants contained
      in
      this Agreement. Accordingly, the Executive hereby agrees that either of the
      Corporation or the Bank may apply for and is entitled to injunctive relief
      in
      any court of competent jurisdiction to restrain the breach or threatened breach
      of, or otherwise to specifically enforce, any of the covenants of this Article
      6, in each case without proof of actual damages, in addition to any other
      remedies that may be available under applicable law. The Executive hereby waives
      the claim or defense that an adequate remedy at law is available to the
      Corporation or the Bank, and the Executive agrees not to urge in any action
      or
      proceeding the claim or defense that an adequate remedy at law
      exists.

    

    Without
      limiting the generality of the foregoing, without limiting the remedies
      available to the Corporation or the Bank for violation of this Agreement, and
      without constituting an election of remedies, if the Executive violates any
      of
      the terms of Article 6 he shall forfeit on the Executive’s own behalf and that
      of beneficiary(ies) any rights to and interest in any severance or other
      benefits under this Agreement and this Agreement shall thereafter be null,
      void,
      and of no further force or effect.

    

    6.4 Article
      6 Survives Termination.
      The
      rights and obligations set forth in this Article 6 shall survive termination
      of
      this Agreement.

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    Article
      7

    Miscellaneous

    

    7.1 Successors
      and Assigns.
      (a)
This
      Agreement is binding on successors.
      This
      Agreement shall be binding upon Employer and any successor to Employer,
      including any persons acquiring directly or indirectly all or substantially
      all
      of the business or assets of Employer by purchase, merger, consolidation,
      reorganization, or otherwise. But this Agreement and Employer’s obligations
      under this Agreement are not otherwise assignable, transferable, or delegable
      by
      Employer. By agreement in form and substance satisfactory to the Executive,
      Employer shall require any successor to all or substantially all of the business
      or assets of Employer expressly to assume and agree to perform this Agreement
      in
      the same manner and to the same extent Employer would be required to perform
      had
      no succession occurred.

    

    (b) This
      Agreement is enforceable by the Executive’s heirs.
      This
      Agreement shall inure to the benefit of and be enforceable by the Executive’s
      personal or legal representatives, executors, administrators, successors, heirs,
      distributees, and legatees.

    

    (c) This
      Agreement is personal and is not assignable.
      This
      Agreement is personal in nature. Without written consent of the other parties,
      no party shall assign, transfer, or delegate this Agreement or any rights or
      obligations under this Agreement, except as expressly provided herein. Without
      limiting the generality or effect of the foregoing, the Executive’s right to
      receive payments hereunder is not assignable or transferable, whether by pledge,
      creation of a security interest, or otherwise, except for a transfer by the
      Executive’s will or by the laws of descent and distribution. If the Executive
      attempts an assignment or transfer that is contrary to this section 7.1,
      Employer shall have no liability to pay any amount to the assignee or
      transferee.

    

    7.2 Governing
      Law, Jurisdiction and Forum.
      This
      Agreement shall be construed under and governed by the internal laws of the
      State of North Carolina, without giving effect to any conflict of laws provision
      or rule (whether of the State of North Carolina or any other jurisdiction)
      that
      would cause the application of the laws of any jurisdiction other than the
      State
      of North Carolina. By entering into this Agreement, the Executive acknowledges
      that the Executive is subject to the jurisdiction of both the federal and state
      courts in the State of North Carolina. Any actions or proceedings instituted
      under this Agreement shall be brought and tried solely in courts located in
      Wake
      County, North Carolina, or in the federal court having jurisdiction in Cary,
      North Carolina. The Executive expressly waives the right to have any such
      actions or proceedings brought or tried elsewhere.

    

    7.3 Entire
      Agreement.
      This
      Agreement sets forth the entire agreement of the parties concerning the
      employment of the Executive by Employer, and any oral or written statements,
      representations, agreements, or understandings made or entered into prior to
      or
      contemporaneously with the execution of this Agreement are hereby rescinded,
      revoked, and rendered null and void. This Agreement amends and restates in
      its
      entirety the Employment Agreement dated as of September 1, 2006 between the
      Executive and the Employer.

    

    7.4 Notices.
      Any
      notice under this Agreement shall be deemed to have been effectively made or
      given if in writing and personally delivered, delivered by mail properly
      addressed in a sealed envelope, postage prepaid by certified or registered
      mail,
      delivered by a reputable overnight delivery service, or sent by facsimile.
      Unless otherwise changed by notice, notice shall be properly addressed to the
      Executive if addressed to the address of the Executive on the books and records
      of the Employer at the time of the delivery of such notice, and properly
      addressed to Employer if addressed to Crescent Financial Corporation, 1005
      High
      House Road, Cary, North Carolina 27513, Attention: Corporate
      Secretary.

    

    7.5 Severability.
      In the
      case of conflict between any provision of this Agreement and any statute,
      regulation, or judicial precedent, the latter shall prevail, but the affected
      provisions of this Agreement shall be curtailed and limited solely to the extent
      necessary to bring them within the requirements of law. If any provision of
      this
      Agreement is held by a court of competent jurisdiction to be indefinite,
      invalid, void or voidable, or otherwise unenforceable, the remainder of this
      Agreement shall continue in full force and effect unless that would clearly
      be
      contrary to the intentions of the parties or would result in an
      injustice.

    

    7.6 Captions
      and Counterparts.
      The
      captions in this Agreement are solely for convenience. The captions in no way
      define, limit, or describe the scope or intent of this Agreement. This Agreement
      may be executed in several counterparts, each of which shall be deemed to be
      an
      original but all of which together shall constitute one and the same
      instrument.

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    7.7 No
      Duty to Mitigate.
      Employer hereby acknowledges that it will be difficult and could be impossible
      (x)
      for the
      Executive to find reasonably comparable employment after employment termination,
      and (y)
      to
      measure the amount of damages the Executive may suffer as a result of
      termination. Additionally, Employer acknowledges that its general severance
      pay
      plans do not provide for mitigation, offset, or reduction of any severance
      payment received thereunder. The Employer further acknowledges that the payment
      of severance benefits under this Agreement is reasonable and shall be liquidated
      damages. The Executive shall not be required to mitigate the amount of any
      payment provided for in this Agreement by seeking other employment. Moreover,
      the amount of any payment provided for in this Agreement shall not be reduced
      by
      any compensation earned or benefits provided as the result of employment of
      the
      Executive or as a result of the Executive being self-employed after employment
      termination.

    

    7.8 Amendment
      and Waiver.
      This
      Agreement may not be amended, released, discharged, abandoned, changed, or
      modified except by an instrument in writing signed by each of the parties
      hereto. The failure of any party hereto to enforce at any time any of the
      provisions of this Agreement shall not be construed to be a waiver of any such
      provision or affect the validity of this Agreement or any part thereof or the
      right of any party thereafter to enforce each and every such provision. No
      waiver or any breach of this Agreement shall be held to be a waiver of any
      other
      or subsequent breach.

    

    7.9 Consultation
      with Counsel and Interpretation of this Agreement.
      The
      Executive acknowledges and agrees that the Executive has had the assistance
      of
      counsel of the Executive’s choosing in the negotiation of this Agreement, or the
      Executive has chosen not to have the assistance of counsel. Both parties hereto
      having participated in the negotiation and drafting of this Agreement, they
      hereby agree that there shall not be strict interpretation against either party
      in connection with any review of this Agreement in which interpretation thereof
      is an issue.

    

    7.10 Compliance
      with Internal Revenue Code Section 409A.
      Employer and the Executive intend that their exercise of authority or discretion
      under this Agreement shall comply with section 409A of the Internal Revenue
      Code
      of 1986. If when the Executive’s employment terminates the Executive is a
      specified employee, as defined in section 409A of the Internal Revenue Code
      of
      1986, and if any payments under this Agreement will result in additional tax
      or
      interest to the Executive because of section 409A, then despite any contrary
      provision of this Agreement the Executive shall not be entitled to the payments
      until the earliest of (x)
      the
      date that is at least six months after termination of the Executive’s employment
      for reasons other than the Executive’s death, (y)
      the
      date of the Executive’s death, or (z)
      any
      earlier date that does not result in additional tax or interest to the Executive
      under section 409A. As promptly as possible after the end of the period during
      which payments are delayed under this provision, the entire amount of the
      delayed payments shall be paid to the Executive in a single lump sum. If any
      provision of this Agreement does not satisfy the requirements of section 409A,
      such provision shall nevertheless be applied in a manner consistent with those
      requirements. If any provision of this Agreement would subject the Executive
      to
      additional tax or interest under section 409A, Employer shall reform the
      provision. However, Employer shall maintain to the maximum extent practicable
      the original intent of the applicable provision without subjecting the Executive
      to additional tax or interest, and Employer 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 Internal Revenue Code of
      1986 include rules, regulations, and guidance of general application issued
      by
      the Department of the Treasury under Internal Revenue Code section
      409A.

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    In
      Witness Whereof,
      the
      parties have executed this Employment Agreement as of the date first written
      above.

     

    
      	
              Executive

            	
              Crescent
                Financial Corporation

            
	 	 
	
                
                /s/ W. Keith Betts

            	
            	
              By:

            
	
              W.
                Keith Betts

            	 
	 	
              Its:

            
	 	 
	 	
              Crescent
                State Bank

            
	 	
              By:

            
	 	 
	 	
              Its:

            

    

    

    
      
        
        

      

      
        11EXHIBIT
      10(xxi)

     

    Crescent
      State Bank

    Endorsement
      Split Dollar Agreement

    

    This
      Endorsement Split Dollar Agreement
      (this
“Agreement”) is entered into as of this 24th day of October, 2007 by and between
      Crescent State Bank, a North Carolina-chartered commercial bank (the “Bank”),
      and Ray Vaughn, an executive of the Bank (the “Executive”). This Agreement shall
      append the Split Dollar Policy Endorsement entered into on even date herewith
      or
      as subsequently amended, by and between the aforementioned parties.

    

    Whereas,
      to
      encourage the Executive to remain an employee of the Bank, the Bank is willing
      to divide the death proceeds of a life insurance policy on the Executive’s life,
      and

    

    Whereas,
      the
      Bank will pay life insurance premiums from its general assets.

    

    Now
      Therefore,
      in
      consideration of the foregoing premises and other good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      the
      parties hereto agree as follows.

    

    Article
      1

    General
      Definitions

    

    Capitalized
      terms not otherwise defined in this Agreement are used herein as defined in
      the
      Salary Continuation Agreement dated as of the date of this Agreement between
      the
      Bank and the Executive. The following terms shall have the meanings
      specified.

    

    1.1 “Administrator”
means
      the administrator described in Article 7

    

    1.2 “Executive’s
      Interest”
means
      the benefit set forth in section 2.2

    

    1.3 “Insured”
means
      the Executive.

    

    1.4 “Insurer”
means
      each life insurance carrier for which there is a Split Dollar Policy Endorsement
      attached to this Agreement.

    

    1.5 “Net
      Death Proceeds”
means
      the total death proceeds of the Policy minus the cash surrender
      value.

    

    1.6 “Policy”
means
      the specific life insurance policy or policies issued by the
      Insurer.

    

    1.7 “Split
      Dollar Policy Endorsement”
means
      the form required by the Administrator or the Insurer to indicate the
      Executive’s interest, if any, in a Policy on the Executive’s life.

     

    Article
      2

    Policy
      Ownership/Interests

    

    2.1 Bank
      Ownership.
      The
      Bank is the sole owner of the Policy and shall have the right to exercise all
      incidents of ownership. The Bank shall be the beneficiary of the remaining
      death
      proceeds of the Policy after the Executive’s interest is paid according to
      section 2.2 below.

    

    2.2 Death
      Benefit.
      Provided the Executive’s death occurs before the Executive’s Separation from
      Service, at the Executive’s death the Executive’s beneficiary designated in
      accordance with the Split Dollar Policy Endorsement shall be entitled to an
      amount equal to the lesser of (x)
      100% of
      the Net Death Proceeds or (y)
      $500,000 (the “Executive’s Interest”). The Executive’s Interest shall be
      extinguished when the Executive’s Separation from Service occurs and the
      Executive’s beneficiary shall be entitled to no benefits under this Agreement
      for the Executive’s death occurring thereafter. The Executive shall have the
      right to designate the beneficiary of the Executive’s Interest.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    2.3 Option
      to Purchase.
      The
      Bank shall not sell, surrender, or transfer ownership of the Policy before
      the
      Executive’s Separation from Service without first giving the Executive or the
      Executive’s transferee the option to purchase the Policy for a period of 60
      days. The purchase price shall be an amount equal to the Policy cash surrender
      value. The option to purchase the Policy shall lapse if not exercised within
      60
      days after the date the Bank gives written notice of the Bank’s intention to
      sell, surrender, or transfer ownership of the Policy. This provision shall
      not
      impair the Bank’s right to terminate this Agreement.

    

    2.4 Comparable
      Coverage.
      The
      Bank shall maintain the Policy in full force and effect. The Bank may not amend,
      terminate, or otherwise abrogate the Executive’s interest in the Policy before
      the Executive’s Separation from Service unless the Bank replaces the Policy with
      a comparable insurance policy to cover the benefit provided under this Agreement
      and executes a new split dollar agreement and endorsement for the comparable
      insurance policy. The Policy or any comparable policy shall be subject to claims
      of the Bank’s creditors.

    

    2.5 Internal
      Revenue Code Section 1035 Exchanges.
      The
      Executive recognizes and agrees that the Bank may after this Agreement is
      adopted wish to exchange the Policy of life insurance on the Executive’s life
      for another contract of life insurance insuring the Executive’s life. Provided
      that the Policy is replaced or intended to be replaced with a comparable policy
      of life insurance, the Executive agrees to provide medical information and
      cooperate with medical insurance-related testing required by a prospective
      insurer for implementing the Policy or, if necessary, for modifying or updating
      to a comparable insurer.

    

    Article
      3

    Premiums

    

    3.1 Premium
      Payment.
      The
      Bank shall pay any premiums due on the Policy.

    

    3.2 Economic
      Benefit.
      The
      Administrator shall annually determine the economic benefit attributable to
      the
      Executive based on the life insurance premium factor for the Executive’s age
      multiplied by the aggregate death benefit payable to the Executive’s
      beneficiary. The “life insurance premium factor” is the minimum factor
      applicable under guidance published pursuant to Treasury Reg. section
      1.61-22(d)(3)(ii) or any subsequent authority.

    

    3.3 Imputed
      Income.
      The
      Bank shall impute the economic benefit to the Executive on an annual basis,
      by
      adding the economic benefit to the Executive’s W-2, or if applicable, Form
      1099.

    

    Article
      4

    Assignment

    

    The
      Executive may irrevocably assign without consideration all of the Executive’s
      interest in the Policy and in this Agreement to any person, entity, or trust
      established by the Executive or the Executive’s spouse. If the Executive
      transfers all of the Executive’s interest in the Policy, all of the Executive’s
      interest in the Policy and in the Agreement shall be vested in the Executive’s
      transferee, who shall be substituted as a party hereunder and the Executive
      shall have no further interest in this Agreement.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    Article
      5

    Insurer

    

    The
      Insurer shall be bound by the terms of the Policy only. Any payments the Insurer
      makes or actions it takes in accordance with the Policy shall fully discharge
      it
      from all claims, suits, and demands of all entities or persons. The Insurer
      shall not be bound by or be deemed to have notice of the provisions of this
      Agreement.

    

    Article
      6

    Claims
      and Review Procedures

    

    6.1 Claims
      Procedure.
      Any
      person or entity who has not received benefits under this Agreement that he
      or
      she believes should be paid (the “claimant”) shall make a claim for benefits as
      follows -

    

       6.1.1 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.

    

       6.1.2 Timing
      of Administrator response.
      The
      Administrator shall respond to the claimant within 90 days after receiving
      the
      claim. If the Administrator determines that special circumstances require
      additional time for processing the claim, the Administrator can 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 set forth the special circumstances
      and
      the date by which the Administrator expects to render its decision.

    

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

    

    
      	 	
               

            	
              (a)
                

            	
              The
                specific reasons for the denial,

            

      	 	 	 	 

    

    
      	 	
               

            	
              (b)
                

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

            

      	 	 	 	 

    

    
      	 	
               

            	
              (c)
                

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

            

      	 	 	 	 

    

    
      	 	
               

            	
              (d)
                

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

            

      	 	 	 	 

    

    
      	 	
               

            	
              (e)
                

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

            

    

    

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

    

       6.2.1 Initiation –
      written request.
      To
      initiate the review, the claimant must file with the Administrator a written
      request for review within 60 days after receiving the Administrator’s notice of
      denial.

    

       6.2.2 Additional
      submissions – information access.
      The
      claimant shall then have the opportunity to submit written comments, documents,
      records, and other information relating to the claim. Upon request and free
      of
      charge, the Administrator shall also provide the claimant 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.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

       6.2.3 Considerations
      on review.
      In
      considering the review, the Administrator 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.

    

       6.2.4 Timing
      of Administrator response.
      The
      Administrator shall respond in writing to the claimant within 60 days after
      receiving the request for review. If the Administrator determines that special
      circumstances require additional time for processing the claim, the
      Administrator can 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 set forth
      the special circumstances and the date by which the Administrator expects to
      render its decision.

    

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

    

    
      	 	
               

            	
              (a)
                

            	
              The
                specific reasons for the denial,

            

      	 	 	 	 

    

    
      	 	
               

            	
              (b)
                

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

            

      	 	 	 	 

    

    
      	 	
               

            	
              (c)
                

            	
              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

            

      	 	 	 	 

    

    
      	 	
               

            	
              (d)
                

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

            

    

    

    Article
      7

    Administration
      of Agreement

    

    7.1  Administrator
      Duties.
      This
      Agreement shall be administered by an Administrator, which shall consist of
      the
      Bank’s board of directors or such committee as the board shall appoint. The
      Executive may be a member of the Administrator. The Administrator shall also
      have the discretion and authority to (x)
      make,
      amend, interpret, and enforce all appropriate rules and regulations for the
      administration of this Agreement and (y)
      decide
      or resolve any and all questions, including interpretations of this Agreement,
      as may arise in connection with the Agreement.

    

    7.2 Agents.
      In the
      administration of this Agreement, the 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.

    

    7.3 Binding
      Effect of Decisions.
      The
      decision or action of the Administrator about any question arising out of or
      in
      connection with the administration, interpretation, and application of this
      Agreement and the rules and regulations promulgated hereunder shall be final
      and
      conclusive and binding upon all persons having any interest in the
      Agreement.

    

    7.4 Indemnity
      of Administrator.
      The
      Bank shall indemnify and hold harmless the members of the 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 Administrator or any of its members.

    

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

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    Article
      8

    Miscellaneous

    

    8.1 Amendment
      and Termination of Agreement.
      This
      Agreement may be amended or terminated solely by a written agreement signed
      by
      the Bank and the Executive. However, this Agreement shall terminate upon the
      first to occur of (x)
      distribution of the death benefit proceeds in accordance with section 2.2 above,
      or (y)
      termination of the Salary Continuation Agreement under Article 5 of the Salary
      Continuation Agreement, or (z)
      the
      Executive’s Separation from Service.

    

    8.2  Binding
      Effect.
      This
      Agreement shall bind the Executive and the Bank and their beneficiaries,
      survivors, executors, administrators, and transferees, and any Policy
      beneficiary.

    

    8.3  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.

    

    8.4 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 succession had occurred. 

    

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

    

    8.6  Entire
      Agreement.
      This
      Agreement and the Salary Continuation Agreement 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.

    

    8.7 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 the provision together with all other provisions of this
      Agreement shall continue in full force and effect to the full extent consistent
      with law.

    

    8.8 Headings.
      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.

    

    8.9  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. Unless otherwise changed by notice, notice shall
      be
      properly addressed to the Executive if addressed to the address of the Executive
      on the books and records of the Bank at the time of the delivery of such notice,
      and properly addressed to the Bank if addressed to the board of directors,
      Crescent State Bank, 1005 High House Road, P. O. Box 5809, Cary, North Carolina
      27513.

    

    In
      Witness Whereof,
      the
      Executive and a duly authorized representative of the Bank have executed this
      Endorsement Split Dollar Agreement as of the date first written
      above.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    
      	
              Executive:

            	 	
              
                Bank:

              

            
	 	 	
              Crescent
                State Bank

            
	
              /s/
                Ray D. Vaughn

            	 	 
	
              Ray
                Vaughn

            	 	
              By:
                

            
	 	 	 
	 	 	
              Its:

            

    

    

    Agreement
      to Cooperate with Insurance Underwriting Incident to Internal Revenue Code
      section 1035 Exchange

    

    I
      acknowledge that I have read the Endorsement Split Dollar Agreement and agree
      to
      be bound by its terms, particularly the covenant on my part set forth in section
      2.5 of the Endorsement Split Dollar Agreement to provide medical information
      and
      cooperate with medical insurance-related testing required by an insurer to
      issue
      a comparable insurance policy to cover the benefit provided under this
      Endorsement Split Dollar Agreement.

    

    
      	 	 	 
	
              Witness

            	 	
              Ray
                Vaughn

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    Split
      Dollar Policy Endorsement

    

    Insured:    Ray
      Vaughn

    Insurer:    
Great
      West Life Insurance Company

    Policy
      No.:   86001955

    

    According
      to the terms of the Crescent State Bank Endorsement Split Dollar Agreement
      dated
      as of  ,
      2007,
      the undersigned Owner requests that the above-referenced policy issued by the
      Insurer provide for the following beneficiary designation and limited contract
      ownership rights to the Insured:

    

    1. Upon
      the
      death of the Insured, proceeds shall be paid in one sum to the Owner, its
      successors or assigns, to the extent of the Owner’s interest in the policy. It
      is hereby provided that the Insurer may rely solely upon a statement from the
      Owner as to the amount of proceeds it is entitled to receive under this
      paragraph.

    

    2. Any
      proceeds at the death of the Insured in excess of the amount paid under the
      provisions of the preceding paragraph shall be paid in one sum to:

    
      	 
	
              Primary
                Beneficiary, Relationship/Social Security Number

            
	 
	
              Contingent
                Beneficiary, Relationship/Social Security
                Number

            

    

    

    The
      exclusive rights to change the beneficiary for the proceeds payable under this
      paragraph and to assign all rights and interests granted under this paragraph
      are hereby granted to the Insured. The sole signature of the Insured shall
      be
      sufficient to exercise the rights. The Owner retains all contract rights not
      granted to the Insured under this paragraph.

    

    3. It
      is
      agreed by the undersigned that this designation and limited assignment of rights
      shall be subject in all respects to the contractual terms of the
      policy.

    

    4. Any
      payment directed by the Owner under this endorsement shall be a full discharge
      of the Insurer, and such discharge shall be binding on all parties claiming
      any
      interest under the policy.

    

    5. This
      Split Dollar Policy Endorsement supersedes and replaces all prior endorsements
      of the Insured relating to the above-referenced policy issued by the
      Insurer.

    

    6. The
      exercise by the Owner of the right to surrender the policy shall terminate
      the
      rights of the Insured.

    

    7. The
      Owner
      of the policy is Crescent State Bank. The Owner alone may exercise all policy
      rights, except that the Owner will not have the rights specified in paragraph
      2
      of this Split Dollar Policy Endorsement.

    

    The
      undersigned for the Owner is signing in a representative capacity and warrants
      that he or she has the authority to bind the entity on whose behalf this
      document is executed.

    

    Signed
      at
      ___________,
      North
      Carolina this ______
      day of
      ____________,
      2007

    

    
      	
              Insured:

            	 	
              Owner:

            
	 	 	
              Crescent
                State Bank

            
	 	 	 
	
              /s/
                Ray Vaughn

            	 	
              By:
                

            
	
              Ray
                Vaughn

            	 	 
	 	 	
              Its:

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    Split
      Dollar Policy Endorsement

    

    Insured:    Ray
      Vaughn

    Insurer:    
New
      York
      Life Insurance Company

    Policy
      No.:   56311897

    

    According
      to the terms of the Crescent State Bank Endorsement Split Dollar Agreement
      dated
      as of  ,
      2007,
      the undersigned Owner requests that the above-referenced policy issued by the
      Insurer provide for the following beneficiary designation and limited contract
      ownership rights to the Insured:

    

    1. Upon
      the
      death of the Insured, proceeds shall be paid in one sum to the Owner, its
      successors or assigns, to the extent of the Owner’s interest in the policy. It
      is hereby provided that the Insurer may rely solely upon a statement from the
      Owner as to the amount of proceeds it is entitled to receive under this
      paragraph.

    

    2. Any
      proceeds at the death of the Insured in excess of the amount paid under the
      provisions of the preceding paragraph shall be paid in one sum to:

    
      	 
	
              Primary
                Beneficiary, Relationship/Social Security Number

            
	 
	
              Contingent
                Beneficiary, Relationship/Social Security
                Number

            

    

    

    The
      exclusive rights to change the beneficiary for the proceeds payable under this
      paragraph and to assign all rights and interests granted under this paragraph
      are hereby granted to the Insured. The sole signature of the Insured shall
      be
      sufficient to exercise the rights. The Owner retains all contract rights not
      granted to the Insured under this paragraph.

    

    3. It
      is
      agreed by the undersigned that this designation and limited assignment of rights
      shall be subject in all respects to the contractual terms of the
      policy.

    

    4. Any
      payment directed by the Owner under this endorsement shall be a full discharge
      of the Insurer, and such discharge shall be binding on all parties claiming
      any
      interest under the policy.

    

    5. This
      Split Dollar Policy Endorsement supersedes and replaces all prior endorsements
      of the Insured relating to the above-referenced policy issued by the
      Insurer.

    

    6. The
      exercise by the Owner of the right to surrender the policy shall terminate
      the
      rights of the Insured.

    

    7. The
      Owner
      of the policy is Crescent State Bank. The Owner alone may exercise all policy
      rights, except that the Owner will not have the rights specified in paragraph
      2
      of this Split Dollar Policy Endorsement.

    

    The
      undersigned for the Owner is signing in a representative capacity and warrants
      that he or she has the authority to bind the entity on whose behalf this
      document is executed.

    

    Signed
      at
      ________________,
      North
      Carolina this ______
      day of
      ________________,
      2007.

    

    
      	
              Insured:

            	 	
              
                Owner:

              

            
	 	 	
              Crescent
                State Bank

            
	 	 	 
	 	 	 
	
               
                /s/ Ray Vaughn

            	 	
              By:
                

            
	
              Ray
                Vaughn

            	 	 
	 	 	
              Its:

            

    

    

    
      
        
        

      

      
        8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00138-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00138-of-00352.parquet"}]]