Document:

Executive Supplemental Retirement Plan Agreement

 EXHIBIT 10.10 
 EXECUTIVE SUPPLEMENTAL RETIREMENT PLAN 
 EXECUTIVE AGREEMENT 
 THIS AGREEMENT is made and entered into this 13 day of February, 2002, by and between The East Carolina Bank, a bank organized and existing under the
laws of the State of North Carolina (hereinafter referred to as the “Bank”), and Thomas O. Davis, an Executive of the Bank (hereinafter referred to as the “Executive”). 
 WHEREAS, the Executive is now in the employ of the Bank and has for many years faithfully served the Bank. It is the consensus of the Board of Directors
(hereinafter referred to as the “Board”) that the Executive’s services have been of exceptional merit, in excess of the compensation paid and an invaluable contribution to the profits and position of the Bank in its field of activity.
The Board further believes that the Executive’s experience, knowledge of corporate affairs, reputation and industry contacts are of such value, and the Executive’s continued services so essential to the Bank’s future growth and
profits, that it would suffer severe financial loss should the Executive terminate their services; 
 ACCORDINGLY, the Board has adopted The
East Carolina Bank Executive Supplemental Retirement Plan Executive Agreement (hereinafter referred to as the “Executive Plan”) and it is the desire of the Bank and the Executive to enter into this Agreement under which the Bank will agree
to make certain payments to the Executive upon the Executive’s retirement or to the Executive’s beneficiary(ies) in the event of the Executive’s death pursuant to the Executive Plan; 
 FURTHERMORE, it is the intent of the parties hereto that this Executive Plan be considered an unfunded arrangement maintained primarily to provide
supplemental retirement benefits for the Executive, and be considered a non-qualified benefit plan for purposes of the Employee Retirement Security Act of 1974, as amended (“ERISA”). The Executive is fully advised of the Bank’s
financial status and has had substantial input in the design and operation of this benefit plan; and 
 NOW THEREFORE, in consideration of
services the Executive has performed in the past and those to be performed in the future, and based upon the mutual promises and covenants herein contained, the Bank and the Executive agree as follows: 

	I.	DEFINITIONS 

  

	 	A.	Effective Date: 

 The Effective Date of the
Executive Plan shall be November 5, 2001. 
  

	 	B.	Plan Year: 

 Any reference to the “Plan
Year” shall mean a calendar year from January 1st to December 31st. In the year of implementation, the term “Plan Year” shall mean the period from the Effective Date to December 31st of the year of the Effective Date.

  

	 	C.	Retirement Date: 

 Retirement Date shall mean the
first day of the calendar month following the latter of (i) the date in which the Executive reaches age sixty-five (65) or (ii) the date upon which the Executive actually retires from service with the Bank after reaching age
sixty-five (65). 
  

	 	D.	Termination of Service: 

 Termination of Service
shall mean the Executive’s voluntary resignation of service by the Executive or the Bank’s discharge of the Executive without cause, prior to the Early Retirement Date (Subparagraph I [K]). 
  

	 	E.	Index Retirement Benefit: 

 The Index Retirement
Benefit for each Executive in the Executive Plan for each Plan Year shall be equal to the excess (if any) of the Index (Subparagraph I [F]) for that Plan Year over the Opportunity Cost (Subparagraph I [G]) for that Plan Year, divided by a factor
equal to 1.13 minus the marginal tax rate. 
  

	 	F.	Index: 

 The Index for any Plan Year shall be the
aggregate annual after-tax income from the life insurance contract(s) described hereinafter as defined by FASB Technical Bulletin 85-4. This Index shall be applied as if such insurance contract(s) were purchased on the Effective Date of the
Executive Plan. 
  

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	Insurance Company:	  	Jefferson Pilot Life Insurance Company
	Policy Form:	  	Flexible Premium Adjustable Life
	Policy Name:	  	ESP VI
	Insured’s Age and Sex:	  	46, Male
	Riders:	  	None
	Ratings:	  	None
	Option:	  	Level
	Face Amount:	  	$169,000
	Premiums Paid:	  	$60,000
	Number of Premium Payments:	  	Single
	Assumed Purchase Date:	  	November 5, 2001

  

			
	Insurance Company:	  	Mass Mutual Life Insurance Company
	Policy Form:	  	Flexible Premium Adjustable Life
	Policy Name:	  	Strategic Life Exec
	Insured’s Age and Sex:	  	46, Male
	Riders:	  	None
	Ratings:	  	None
	Option:	  	Level
	Face Amount:	  	$182,400
	Premiums Paid:	  	$60,000
	Number of Premium Payments:	  	Single
	Assumed Purchase Date:	  	November 5, 2001

 If such contracts of life insurance are actually purchased by the Bank, then the actual policies as
of the dates they were actually purchased shall be used in calculations under this Executive Plan. If such contracts of life insurance are not purchased or are subsequently surrendered or lapsed, then the Bank shall receive annual policy
illustrations that assume the above-described policies were purchased or had not subsequently surrendered or lapsed. Said illustration shall be received from the respective insurance companies and will indicate the increase in policy values for
purposes of calculating the amount of the Index. 
 In either case, references to the life insurance contracts are merely for purposes of
calculating a benefit. The Bank has no obligation to purchase such life insurance and, if purchased, the Executive and the Executive’s beneficiary(ies) shall have no ownership interest in such policy and shall always have no greater interest in
the benefits under this Executive Plan than that of an unsecured creditor of the Bank. 
  

	 	G.	Opportunity Cost: 

 The Opportunity Cost for any
Plan Year shall be calculated by taking the sum of the amount of premiums for the life insurance policies described in the definition of “Index” plus the amount of any after-tax benefits paid to 

  

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the Executive pursuant to the Executive Plan (Paragraph II hereinafter) plus the amount of all previous years’ after-tax Opportunity Cost, and
multiplying that sum by the greater of either one of the following: (i) the average after tax yield of a one-year Treasury bill, or (ii) the Bank’s average annualized after-tax Cost of Funds Expense as determined by the Bank’s
third quarter call report as filed with the appropriate regulatory agency. 
  

	 	H.	Change of Control: 

 Change of Control shall
mean the direct or indirect acquisition by another person, firm or corporation, by merger, share exchange, consolidation, purchase or otherwise, of all or substantially all of the assets or stock of the Bank or its parent company. 
  

	 	I.	Normal Retirement Age: 

 Normal Retirement Age shall
mean the date on which the Executive attains age sixty-five (65). 
  

	 	J.	Benefit Accounting: 

 The Bank shall account for the
benefit provided herein using the regulatory accounting principles of the Bank’s primary federal regulator. The Bank shall establish an accrued liability retirement account for the Executive into which appropriate reserves shall be accrued.

  

	 	K.	Early Retirement Date: 

 Early Retirement Date shall mean a retirement from service which is effective prior to the Normal Retirement Age stated herein, provided the Executive has attained age fifty-nine and one-half (59 1/2). 
 II. INDEX BENEFITS 

  

	 	A.	Retirement Benefits: 

 Subject to Subparagraph II
(E) hereinafter, an Executive who remains in the employ of the Bank until the Normal Retirement Age (Subparagraph I [I]) shall be entitled to receive an annual benefit amount equal to the amount set forth in Exhibit A-1. Said payments shall be
made quarterly and shall commence at the beginning of the Bank’s first quarter following the Executive’s Retirement Date and shall continue until the Executive attains age seventy-five (75). Upon completion of the aforestated payments and
commencing subsequent thereto and subject to Subparagraph II (A) (i) hereinbelow, the Index Retirement Benefit (Subparagraph I [E]) for each Plan Year subsequent to the year in which 

  

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the Executive attains age seventy-five (75), and including the remaining portion of the Plan Year in which the Executive attains age seventy-five (75), shall
be paid to the Executive until the Executive’s death. 
  

	 	(i)	The Index Retirement Benefit Adjustment: 

 The
Index Retirement Benefit payment as set forth hereinabove for the five (5) Plan Years subsequent to the Executive attaining age seventy-five (75) shall be adjusted according to a number equal to the aggregate of the Index Retirement
Benefit (Subparagraph I [F]) for each Plan Year from the Effective Date of this agreement until the Plan Year subsequent to the Executive attaining age seventy-five (75) over the aggregate of the benefit payments the Executive actually received
under the terms of this Executive Plan through that date. For example, if the Executive retires at age sixty-five (65) and the aggregate annual benefits received by the Executive until the Plan Year the Executive attains age seventy-five
(75) were $900,000.00, and the aggregate Index Retirement Benefits for each Plan Year from the Effective Date of this agreement to the Plan Year the Executive’s attains age seventy-five (75) were $1,000,000.00 then the
Executive’s Index Retirement Benefit in the first five (5) Plan Years said payment is payable to the Executive would be increased by Twenty Thousand and 00/100ths Dollars ($20,000.00) each year (i.e. $100,000.00 ÷ 5). If said number
is a deficit, then the Index Retirement Benefit for the first Plan Year said payment is payable to the Executive and each subsequent Plan Year’s benefit (if necessary) shall be reduced until the entire deficit has been recovered by the Bank.
For each year thereafter, the Index Retirement Benefit payment shall be paid as set forth in Subparagraph I (E). For example, if the Executive retires at age sixty-five (65) and the aggregate annual benefits to be received by the Executive
until the Plan Year the Executive attains age seventy-five (75) were $1,000,000.00, and the aggregate Index Retirement Benefits for each Plan Year from the Effective Date of this agreement to the Plan Year the Executive attains age
seventy-five (75) were $900,000.00 and the Executive’s Index Retirement Benefit was $90,000.00 in the first year, then the Executive would not receive any Index Retirement Benefit in the first year, and the second years’
Index Retirement benefit would be reduced by $10,000.00. 
  

	 	B.	Termination of Service: 

 Subject to Subparagraph II
(D), should an Executive suffer a Termination of Service the Executive shall be entitled to receive the following percentage of the annual benefit set forth in Exhibit A-1. Said payments shall be made quarterly and shall commence at the beginning of
the Bank’s 

  

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first quarter following the Executive’s Normal Retirement Age (Subparagraph I [I]) and shall continue until the Executive attains age seventy-five (75).
Upon completion of the aforestated payments and commencing subsequent thereto and subject to Subparagraph II (A) (i) hereinabove the following percentage of the Index Retirement Benefit for each Plan Year subsequent to the year in which
the Executive attains seventy-five (75), and including the remaining portion of the Plan Year in which the Executive attains age seventy-five (75), shall be paid to the Executive until the Executive’s death. 
  

			
	Date of Hire	  	10% for each full year of service from the date of first service to a maximum of 80%
		
	PLUS	  	
		
	If Insured is at least 62 years of age on his or her date of termination	  	 20%
 For a maximum total of 100%

  

	 	C.	Death: 

 If the Executive dies while there is a
balance in the Executive’s accrued liability retirement account, then the unpaid balance shall be paid in a lump sum to the individual or individuals designated in writing by the Executive and filed with the Bank. In the absence of or a failure
to designate a beneficiary, the unpaid balance shall be paid in a lump sum to the personal representative of the Executive’s estate. If, upon death, the Executive shall have received the total balance of the Executive’s accrued liability
retirement account, then no further benefit shall be due hereunder. In any event, upon the death of the Executive, the Executive’s beneficiary shall not be entitled to receive any Index Retirement Benefit. 
  

	 	D.	Discharge for Cause: 

 All rights of Executive
hereunder shall cease and terminate immediately in the event of a termination of Executive’s employment with Bank “with cause.” For purposes of this Agreement, “with cause” shall have the same meaning that such term has in
the employment agreement between Bank and Executive. If no such employment agreement exists at the time of termination, the term “with cause” shall be deemed to mean, but is not limited to, personal dishonesty, incompetence, willful
material misconduct, breach of fiduciary duty, failure to perform the obligations of the Executive as stated herein, willful violation of any law, rule, or regulation (other than minor traffic infractions), or, any material breach of any provision
of this agreement. 
  

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	 	E.	Disability Benefit: 

 In the event the Executive
becomes disabled, as defined herein, prior to any Termination of Service, and the Executive’s employment with the Bank is terminated because of such disability, the Executive, upon submission of written documentation and verification of
disability satisfactory to the Bank, shall receive one hundred percent (100%) of the benefit amount provided in Subparagraph II (A) above. Payment of such benefit shall begin when the Executive reaches his or her Normal Retirement Age.
Subject to the Bank’s obligations and Executive’s rights under Title I of the Americans with Disabilities Act and the Family and Medical Leave Act, if applicable, and any other applicable federal or state laws, disability shall be defined
as the Executive not being able to perform the duties of the Executive’s own job and shall be as further defined in the Bank’s long term disability policy in effect at the time of said disability. If no such policy exists at the time of
the disability, then disability shall be defined as a physical or mental impairment of Executive which renders Executive incapable of performing Executive’s normal and regular essential employment duties and which shall be medically determined
to be of permanent duration as the same is construed for purposes of disability benefits under the federal Social Security laws and regulations. If there is a dispute regarding whether the Executive is disabled, such dispute shall be resolved by a
physician selected by the Bank and such resolution shall be binding upon all parties to this Agreement. 
  

	 	F.	Death Benefit: 

 Except as set forth above, there is
no death benefit provided under this Agreement. 
  

	 	G.	Early Retirement: 

 Subject to Subparagraph II (D),
should the Executive elect Early Retirement or be discharged without cause by the Bank subsequent to the Early Retirement Date [Subparagraph I (K)], the Executive shall be entitled to receive the annual benefit set forth in Exhibit A-2 reduced by
the full number of years the Executive retires early prior to Normal Retirement Age, times eighteen and eighteen one hundredths percent (18.18%) (For example, if Executive retires at age 61, the annual benefit set forth in Exhibit A-2 shall be
reduced by 72.72%: 61-65 = 4 X 18.18% = 72.72%). Said payments shall be made quarterly and shall commence at the beginning of the Bank’s first quarter following the Executive’s early retirement and shall continue until the Executive
attains age seventy-five (75). Upon completion of the aforestated payments and commencing subsequent thereto and subject to Subparagraph II (A) (i) hereinabove, the vested percentage set forth hereinabove of the Index Retirement Benefit

  

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for each Plan Year subsequent to the year in which the Executive attains age seventy-five (75), and including the remaining portion of the Plan Year in which
the Executive attains age seventy-five (75), shall be paid to the Executive until the Executive’s death. 
  

	III.	RESTRICTIONS UPON FUNDING 

 The Bank shall have no
obligation to set aside, earmark or entrust any fund or money with which to pay its obligations under this Executive Plan. The Executive, their beneficiary(ies), or any successor in interest shall be and remain simply a general creditor of the Bank
in the same manner as any other creditor having a general claim for matured and unpaid compensation. 
 The Bank reserves the absolute right,
at its sole discretion, to either fund the obligations undertaken by this Executive Plan or to refrain from funding the same and to determine the extent, nature and method of such funding. Should the Bank elect to fund this Executive Plan, in whole
or in part, through the purchase of life insurance, mutual funds, disability policies or annuities, the Bank reserves the absolute right, in its sole discretion, to terminate such funding at any time, in whole or in part. At no time shall any
Executive be deemed to have any lien nor right, title or interest in or to any specific funding investment or to any assets of the Bank. 
 If
the Bank elects to invest in a life insurance, disability or annuity policy upon the life of the Executive, then the Executive shall assist the Bank by freely submitting to a physical exam and supplying such additional information necessary to
obtain such insurance or annuities. 
  

	IV.	CHANGE OF CONTROL 

 Notwithstanding other terms of
this Agreement, upon a Change of Control (Subparagraph I [H]), if the Executive subsequently suffers a Termination of Service (Subparagraph I [D]), then the Executive shall receive the benefits promised in this Executive Plan upon attaining Normal
Retirement Age, as if the Executive had been continuously employed by the Bank until the Executive’s Normal Retirement Age. The Executive will also remain eligible for all promised death benefits in this Executive Plan. In addition, no sale,
merger, or consolidation of the Bank shall take place unless the new or surviving entity expressly acknowledges the obligations under this Executive Plan and agrees to abide by its terms. 
  

	V.	MISCELLANEOUS 

  

	 	A.	Alienability and Assignment Prohibition: 

 Neither
the Executive, nor the Executive’s surviving spouse, nor any other beneficiary(ies) under this Executive Plan shall have any power or right to 

  

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transfer, assign, anticipate, hypothecate, mortgage, commute, modify or otherwise encumber in advance any of the benefits payable hereunder nor shall any of
said benefits be subject to seizure for the payment of any debts, judgments, alimony or separate maintenance owed by the Executive or the Executive’s beneficiary(ies), nor be transferable by operation of law in the event of bankruptcy,
insolvency or otherwise. In the event the Executive or any beneficiary attempts assignment, commutation, hypothecation, transfer or disposal of the benefits hereunder, the Bank’s liabilities shall forthwith cease and terminate. 
  

	 	B.	Binding Obligation of the Bank and any Successor in Interest: 

 The Bank shall not merge or consolidate into or with another bank or sell substantially all of its assets to another bank, firm or person until such bank, firm or person expressly agrees, in writing, to assume and
discharge the duties and obligations of the Bank under this Executive Plan. This Executive Plan shall be binding upon the parties hereto, their successors, beneficiaries, heirs and personal representatives. 
  

	 	C.	Amendment or Revocation: 

 It is agreed by and
between the parties hereto that, during the lifetime of the Executive, this Executive Plan may be amended or revoked at any time or times, in whole or in part, by the mutual written consent of the Executive and the Bank. 
  

	 	D.	Gender: 

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

	 	E.	Effect on Other Bank Benefit Plans: 

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

	 	F.	Headings: 

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

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	 	G.	Applicable Law: 

 The validity and interpretation of
this Agreement shall be governed by the laws of the State of North Carolina. 
  

	 	H.	12 U.S.C. § 1828(k): 

 Any payments made to the
Executive pursuant to this Executive Plan, or otherwise, are subject to and conditioned upon their compliance with 12 U.S.C. § 1828(k) or any regulations promulgated thereunder. 
  

	 	I.	Partial Invalidity: 

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

	 	J.	Employment: 

 No provision of this Executive Plan
shall be deemed to restrict or limit any existing employment agreement by and between the Bank and the Executive, nor shall any conditions herein create specific employment rights to the Executive nor limit the right of the Employer to discharge the
Executive with or without cause. In a similar fashion, no provision shall limit the Executive’s rights to voluntarily sever the Executive’s employment at any time. 
  

	 	K.	Notices: 

 All notices required or permitted to be
given pursuant to this Agreement shall be in writing, unless otherwise specified, and shall be delivered personally, deposited in the United States mail, registered or certified and postage prepaid with return receipt requested, or deposited with a
reputable overnight courier which provides a day and time stamped receipt, addressed to Executive, Bank or Trustee, as applicable, at the address set forth herein or to such other address as hereafter may be furnished to the other parties in writing
pursuant to this paragraph. All notices so given shall be deemed effective and received upon the earlier of (i) actual receipt, (ii) receipt and refusal; or (iii) five (5) days from (1) the postmark date, if deposited with
the United States Postal Service, or (2) the date of deposit, if deposited with an overnight courier, unless otherwise provided herein. 
  

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	Bank:	  	The East Carolina Bank	  	
		  	Hwy. 264	  	
		  	Engelhard, North Carolina 27824	  	
			
	Trustee:	  	Thomas A. Nussbaum	  	
		  	Eastern Bank & Trust Co.	  	
		  	2 Adams Place, AP06 Quincy, MA 02169-7456	  	
			
	Executive:	  	Thomas O. Davis	  	
		  	  
	  	
		  	  
	  	
		  	  
	  	

  

	VI.	ERISA PROVISION 

  

	 	A.	Named Fiduciary and Plan Administrator: 

 The
“Named Fiduciary and Plan Administrator” of this Executive Plan shall be The East Carolina Bank, until its resignation or removal by the Board. As Named Fiduciary and Plan Administrator, the Bank shall be responsible for the management,
control and administration of the Executive Plan. The Named Fiduciary may delegate to others certain aspects of the management and operation responsibilities of the Executive Plan including the employment of advisors and the delegation of
ministerial duties to qualified individuals. 
  

	 	B.	Claims Procedure and Arbitration: 

 In the event a
dispute arises over benefits under this Executive Plan and benefits are not paid to the Executive (or to the Executive’s beneficiary(ies) in the case of the Executive’s death) and such claimants feel they are entitled to receive such
benefits, then a written claim must be made to the Named Fiduciary and Plan Administrator named above within sixty (60) days from the date payments are refused. The Named Fiduciary and Plan Administrator shall review the written claim and if
the claim is denied, in whole or in part, they shall provide in writing within sixty (60) days of receipt of such claim the specific reasons for such denial, reference to the provisions of this Executive Plan upon which the denial is based and
any additional material or information necessary to perfect the claim. Such written notice shall further indicate the additional steps to be taken by claimants if a further review of the claim denial is desired. A claim shall be deemed denied if the
Named Fiduciary and Plan Administrator fail to take any action within the aforesaid sixty-day period. 
 If claimants desire a second review
they shall notify the Named Fiduciary and Plan Administrator in writing within sixty (60) days of the first claim 

  

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denial. Claimants may review this Executive Plan or any documents relating thereto and submit any written issues and comments it may feel appropriate. In
their sole discretion, the Named Fiduciary and Plan Administrator shall then review the second claim and provide a written decision within sixty (60) days of receipt of such claim. This decision shall likewise state the specific reasons for the
decision and shall include reference to specific provisions of the Plan Agreement upon which the decision is based. 
 If claimants continue
to dispute the benefit denial based upon completed performance of this Executive Plan or the meaning and effect of the terms and conditions thereof, then claimants may submit the dispute to an arbitrator for final arbitration. The arbitrator shall
be selected by mutual agreement of the Bank and the claimants. The arbitrator shall operate under any generally recognized set of arbitration rules. The parties hereto agree that they and their heirs, personal representatives, successors and assigns
shall be bound by the decision of such arbitrator with respect to any controversy properly submitted to it for determination. 
 Where a
dispute arises as to the Bank’s discharge of the Executive “for cause,” such dispute shall likewise be submitted to arbitration as above described and the parties hereto agree to be bound by the decision thereunder. 
  

	VII.	TERMINATION OR MODIFICATION OF AGREEMENT BY REASON OF CHANGES IN THE LAW, RULES OR REGULATIONS 

 The Bank is entering into this Agreement upon the assumption that certain existing tax laws, rules and regulations will continue in effect in their
current form. If any said assumptions should change and said change has a detrimental effect on this Executive Plan as determined by the Bank in its sole discretion, then the Bank reserves the right to terminate or modify this Agreement accordingly.
Upon a Change of Control (Subparagraph I [H]), this paragraph shall become null and void effective immediately upon said Change of Control. 
 IN WITNESS
WHEREOF, the parties hereto acknowledge that each has carefully read this Agreement and executed the original thereof on the first day set forth hereinabove, and that upon execution, each has received a conforming copy. 
  

							
		 		 	THE EAST CAROLINA BANK
		 		 	Engelhard, North Carolina
				
	 /s/ Chris Burns Fazzi
	 		 	By:	 	 /s/ J. Dorson White, EVP and COO

	Witness	 		 		 	                                       
          Title
				
	 /s/ Chris Burns Fazzi
	 		 		 	 /s/ Thomas O. Davis

	Witness	 		 		 	Thomas O. Davis

  

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 BENEFICIARY DESIGNATION FORM 
 FOR THE EXECUTIVE SUPPLEMENTAL 
 RETIREMENT PLAN AGREEMENT 
 PRIMARY DESIGNATION: 
  

					
	Name	 	Address	 	Relationship
	
	  

	
	  

	
	  

 SECONDARY (CONTINGENT) DESIGNATION: 
  

	
	  

	
	  

	
	  

 All sums payable under the Executive Supplemental Retirement Plan Executive Agreement by reason of my death shall
be paid to the Primary Beneficiary, if he or she survives me, and if no Primary Beneficiary shall survive me, then to the Secondary (Contingent) Beneficiary. 
  

					
	 /s/ Thomas O. Davis
	 		  	2/13/2002
	Thomas O. Davis	 		  	Date

  

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 EXHIBIT “A-1” 
  

						
	 	  	End of
Year Age:	  	Benefit
Amount
	 Davis
	  	65	  	$	26,039
		  	66	  	$	26,444
		  	67	  	$	27,257
		  	68	  	$	27,637
		  	69	  	$	28,041
		  	70	  	$	28,465
		  	71	  	$	28,889
		  	72	  	$	29,348
		  	73	  	$	29,871
		  	74	  	$	30,381

  

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 EXHIBIT “A-2” 
  

							
	 	  	Plan Years Subsequent
to Early Retirement
Date as Defined in
Subparagraph I(K) of
the Agreement	  	Benefit
Amount	 
	 Davis
	  	1	  	$	26,039	 
		  	2	  	$	26,444	 
		  	3	  	$	27,257	 
		  	4	  	$	27,637	 
		  	5	  	$	28,041	 
		  	6	  	$	28,465	 
		  	7	  	$	28,889	 
		  	8	  	$	29,348	 
		  	9	  	$	29,871	 
		  	10	  	$	30,381	*

  

	*	This benefit amount shall remain constant for any remaining Plan Years that the Executive may be entitled to receive a fixed benefit amount pursuant to Subparagraph II
(G) of the Agreement; the Executive’s age: 75 

  

 15Split-Dollar Life Insurance Agreement

 Exhibit 10.14 
 LIFE INSURANCE 
 ENDORSEMENT METHOD SPLIT DOLLAR PLAN 
 AGREEMENT 
  

					
	Insurer:	  	Jefferson Pilot Life Insurance Company	  	
		  	Mass Mutual Life Insurance Company	  	
			
	Policy Number:	  	JP5221287	  	
		  	0046689	  	
			
	Bank:	  	The East Carolina Bank	  	
			
	Insured:	  	T. Olin Davis	  	
			
	Relationship of Insured to Bank:	  	Executive	  	
			
	Trust:	  	Rabbi Trust for the Executive Supplemental Retirement Plan Agreement, Director Supplemental Retirement Plan Agreement, and the Endorsement Method Split Dollar Plan Agreement	  	

 The respective rights and duties of the Bank and the Insured in the above-referenced policy shall be pursuant to
the terms set forth below: 
  

	I.	DEFINITIONS 

 Refer to the policy contract for the
definition of any terms in this Agreement that are not defined herein. If a definition of a term in the policy is inconsistent with the definition of a term in this Agreement, then the definition of the term as set forth in this Agreement shall
supersede and replace the definition of the terms as set forth in the policy. 
  

	II.	POLICY TITLE AND OWNERSHIP 

 Title and ownership
shall reside in the Trustee for the Rabbi Trust for the Executive Supplemental Retirement Plan Agreement, Director Supplemental Retirement Plan Agreement, and the Endorsement Method Split Dollar Plan 

 
Agreement for its use and for the use of the Insured all in accordance with this Agreement. The Trustee at the direction of the Bank may, to the extent of
the Bank’s interest, exercise the right to borrow or withdraw on the policy cash values. Where the Trustee at the direction of the Bank and the Insured (or assignee, with the consent of the Insured) mutually agree to exercise the right to
increase the coverage under the subject policy, then, in such event, the rights, duties and benefits of the parties to such increased coverage shall continue to be subject to the terms of this Agreement. 
  

	III.	BENEFICIARY DESIGNATION RIGHTS 

 The Insured (or
assignee) shall have the right and power to designate a beneficiary or beneficiaries to receive the Insured’s share of the proceeds of the policy payable upon the death of the Insured, and to elect and change a payment option for such
beneficiary, subject to any right or interest of the Bank or the Trust may have in such proceeds, as provided in this Agreement. Any such designation by the Insured shall be made in writing in the form attached hereto as Exhibit A and incorporated
herein by reference. Any such designation or change therein shall be effective three (3) business days from delivery of said written notice by Insured to the Bank. 
  

	IV.	PREMIUM PAYMENT METHOD 

 Subject to Subparagraph IX
(B), the Bank or the Trustee at the direction of the Bank shall pay an amount equal to the planned premiums and any other premium payments that might become necessary to keep the policy in force. 
  

	V.	TAXABLE BENEFIT 

 Annually the Insured will receive
a taxable benefit equal to the value of the insurance protection as required by the Internal Revenue Service. The Bank or the Trustee at the direction of the Bank will report to the Insured the amount of imputed income each year on Form W-2 or its
equivalent. 
  

	VI.	DIVISION OF DEATH PROCEEDS 

 Subject to Paragraphs
VII and IX herein, the division of the death proceeds of the policy is as follows: 
  

	 	A.	 At the time of the Insured’s death, should the Insured be employed by the Bank, retired from the Bank, or have had his or her employment terminated from the
Bank due to disability*, the Insured’s beneficiary(ies), designated in accordance with Paragraph III or the Insured’s estate if no beneficiary has been so designated, shall be entitled to an amount equal to eighty percent (80%) of the
net-at-risk insurance portion of the proceeds. 

  

 2 

 
The net-at-risk insurance portion is the total proceeds less the cash value of the policy. 
  

	 	B.	Should the Insured not be employed by the Bank at the time of his or her death for reasons other than disability* or retirement, the Insured’s beneficiary(ies), designated in
accordance with Paragraph III or the Insured’s estate if no beneficiary has been so designated, shall be entitled to the percentage as set forth hereinbelow of the proceeds described in Subparagraph VI (A) above. 

 

			
	Date of Hire	  	10% for each full year of service from the date of first service to a maximum of 80%
		
	PLUS	  	
		
	If Insured is at least 62 years of age on his or her date of death	  	 20%
 For a maximum total of 100%

 *Subject to the Bank’s obligations and Insured’s rights under Title I of the Americans
with Disabilities Act and the Family and Medical Leave Act, if applicable, and any other applicable federal or state laws, for purposes of this Agreement, disability shall be defined as the Insured not being able to perform the duties of the
Insured’s own job and shall be as further defined in the Bank’s long term disability policy in effect at the time of said disability. If no such policy exists at the time of the disability, then disability shall be defined as a physical or
mental impairment of Insured which renders Insured incapable of performing Insured’s normal and regular essential employment duties and which shall be medically determined to be of permanent duration as the same is construed for purposes of
disability benefits under the federal Social Security laws and regulations. 
  

	 	C.	The Bank shall be entitled to the remainder of such proceeds of the policy, including but not limited to the cash surrender value as provided in Paragraph VII herein.

  

	 	D.	The Bank and the Insured (or assignees) shall share in any interest due on the death proceeds on a pro rata basis as the proceeds due each respectively bears to the total proceeds,
excluding any such interest. 

  

 3 

	VII.	DIVISION OF THE CASH SURRENDER VALUE OF THE POLICY 

 The Bank or the Trust, in the discretion of the Bank, shall at all times be entitled to an amount equal to the policy’s cash value, as that term is defined in the policy contract, less any policy loans and unpaid interest or cash
withdrawals previously incurred by the Bank or the Trustee at the direction of the Bank and any applicable surrender charges. Such cash value shall be determined as of the date of surrender or death of the Insured as the case may be. 
  

	VIII.	RIGHTS OF PARTIES WHERE POLICY ENDOWMENT OR ANNUITY ELECTION EXISTS 

 In the event the policy involves an endowment or annuity element, the Bank’s or the Trust’s right and interest in any endowment proceeds or annuity benefits, on expiration of the deferment period, shall be
determined under the provisions of this Agreement by regarding such endowment proceeds or the commuted value of such annuity benefits as the policy’s cash value. Such endowment proceeds or annuity benefits shall be considered to be death
proceeds for the purposes of division under this Agreement. 
  

	IX.	TERMINATION OF AGREEMENT 

 This Agreement shall
terminate upon the occurrence of any one of the following: 
  

	 	A.	The Insured is terminated by the Bank with cause. For purposes of this Agreement, the term “with cause” shall have the same meaning as the Employment Agreement between the
Bank and the Insured. If no such employment agreement exists at the time of termination, the term “with cause” shall be deemed to mean, but is not limited to, personal dishonesty, incompetence, willful material misconduct, breach of
fiduciary duty, failure to perform the obligations of the Insured as stated herein, willful violation of any law, rule, or regulation (other than minor traffic infractions), or, any material breach of any provision of this agreement.

  

	 	B.	Surrender, lapse, or other termination of the Policy by the Bank. 

 Upon such termination, the Insured (or assignee) shall have a fifteen (15) day option, which period shall begin to run on the date of termination of the policy, to receive from the Bank or the Trustee at the direction of the Bank an
absolute assignment of the policy in consideration of a cash payment to the Bank or the Trustee at the direction of the Bank, whereupon this Agreement shall terminate. Such cash payment referred to hereinabove shall be the greater of: 
  

	 	1)	The Bank’s or the Trust’s share of the cash value of the policy on the date of such assignment, as defined in this Agreement; or 

  

 4 

	 	2)	The amount of the premiums which have been paid by the Bank or the Trustee at the direction of the Bank prior to the date of such assignment. 

 If, within said fifteen (15) day period, the Insured fails to exercise said option, fails to procure the entire aforestated cash payment, or dies,
then the option shall terminate and the Insured (or assignee) agrees that all of the Insured’s rights, interest and claims in the policy shall terminate as of the date of the termination of this Agreement. 
 The Insured expressly agrees that this Agreement shall constitute sufficient written notice to the Insured of the Insured’s option to receive an
absolute assignment of the policy as set forth herein. 
 Except as provided above, this Agreement shall terminate upon distribution of the
death benefit proceeds in accordance with Paragraph VI above. 
  

	X.	INSURED’S OR ASSIGNEE’S ASSIGNMENT RIGHTS 

 The Insured may not, without the written consent of the Bank, assign to any individual, trust or other organization, any right, title or interest in the subject policy nor any rights, options, privileges or duties created under this
Agreement. 
  

	XI.	AGREEMENT BINDING UPON THE PARTIES 

 This Agreement
shall bind the Insured and the Bank or the Trustee, their heirs, successors, personal representatives and assigns. 
  

	XII.	ERISA PROVISIONS 

 The following provisions are part
of this Agreement and are intended to meet the requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”): 
  

	 	A.	Named Fiduciary and Plan Administrator. 

 The
“Named Fiduciary and Plan Administrator” of this Endorsement Method Split Dollar Agreement shall be The East Carolina Bank until its resignation or removal by the Board of Directors. As Named Fiduciary and Plan Administrator, the Bank or
the Trustee at the direction of the Bank shall be responsible for the management, control, and administration of this Split Dollar Plan as established herein. The Named Fiduciary may delegate to others certain aspects of the management and operation
responsibilities of the Plan, including the employment of advisors and the delegation of any ministerial duties to qualified individuals. 
  

 5 

	 	B.	Funding Policy. 

 Subject to Subparagraph IX (B),
the funding policy for this Split Dollar Plan shall be to maintain the subject policy in force by paying, when due, all premiums required. 
  

	 	C.	Basis of Payment of Benefits. 

 Direct payment by
the Insurer is the basis of payment of benefits under this Agreement, with those benefits in turn being based on the payment of premiums as provided in this Agreement. 
  

	 	D.	Claim Procedures. 

 Claim forms or claim information
as to the subject policy can be obtained by contacting Benmark, Inc. (800-544-6079). When the Named Fiduciary has a claim which may be covered under the provisions described in the insurance policy, they should contact the office named above, and
they will either complete a claim form and forward it to an authorized representative of the Insurer or advise the named Fiduciary what further requirements are necessary. The Insurer will evaluate and make a decision as to payment. If the claim is
payable, a benefit check will be issued in accordance with the terms of this Agreement. 
 In the event that a claim is not eligible under the
policy, the Insurer will notify the Named Fiduciary of the denial pursuant to the requirements under the terms of the policy. If the Named Fiduciary is dissatisfied with the denial of the claim and wishes to contest such claim denial, they should
contact the office named above and they will assist in making an inquiry to the Insurer. All objections to the Insurer’s actions should be in writing and submitted to the office named above for transmittal to the Insurer. 
  

	 	E.	Notices. 

 All notices required or permitted to be
given pursuant to this Agreement shall be in writing, unless otherwise specified, and shall be delivered personally, deposited in the United States mail, registered or certified and postage prepaid with return receipt requested, or deposited with a
reputable overnight courier which provides a day and time stamped receipt, addressed to the Executive, Bank or Trustee, as applicable, at the 

  

 6 

 
address set forth herein or to such other address as hereafter may be furnished to the other parties in writing pursuant to this paragraph. All notices so
given shall be deemed effective and received upon the earlier of (i) actual receipt, (ii) receipt and refusal; or (iii) five (5) days from (1) the postmark date, if deposited with the United States Postal Service, or
(2) the date of deposit, if deposited with an overnight courier, unless otherwise provided herein. 
  

					
	Bank:	  	The East Carolina Bank	  	
		  	Hwy. 264	  	
		  	Engelhard, North Carolina 27824	  	
			
	Trustee:	  	Thomas A. Nussbaum	  	
		  	Eastern Bank & Trust Co.	  	
		  	2 Adams Place, AP06	  	
		  	Quincy, MA 02169-7456	  	
			
	Executive:	  	T. Olin Davis	  	
			
		  	  
	  	
			
		  	  
	  	
			
		  	  
	  	

  

	XIII.	GENDER 

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

	XIV.	INSURANCE COMPANY NOT A PARTY TO THIS AGREEMENT 

 The Insurer shall not be deemed a party to this Agreement, but will respect the rights of the parties as herein developed upon receiving an executed copy of this Agreement. Payment or other performance in accordance with the policy
provisions shall fully discharge the Insurer from any and all liability. 
  

	XV.	CHANGE OF CONTROL 

 Change of Control shall mean the
direct or indirect acquisition by another person, firm or corporation, by merger, share exchange, consolidation, purchase or otherwise, all or substantially all of the assets or stock of the Bank or its parent company. Upon a Change of Control, if
the Insured’s employment is subsequently terminated, except for cause, then the Insured shall be one hundred percent (100%) vested in the benefits promised in this Agreement and, therefore, 

  

 7 

 
upon the death of the Insured, the Insured’s beneficiary(ies) (designated in accordance with Paragraph III) shall receive the death benefit provided
herein as if the Insured had died while employed by the Bank (See Subparagraph VI [A]). 
  

	XVI.	AMENDMENT OR REVOCATION 

 It is agreed by and
between the parties hereto that, during the lifetime of the Insured, this Agreement may be amended or revoked at any time or times, in whole or in part, by the mutual written consent of the Insured and the Bank. 
  

	XVII.	EFFECTIVE DATE 

 The Effective Date of this
Agreement shall be November 5, 2001. 
  

	XVIII.	SEVERABILITY AND INTERPRETATION 

 If a provision of
this Agreement is held to be invalid or unenforceable, the remaining provisions shall nonetheless be enforceable according to their terms. Further, in the event that any provision is held to be over broad as written, such provision shall be deemed
amended to narrow its application to the extent necessary to make the provision enforceable according to law and enforced as amended. 
  

	XIX.	APPLICABLE LAW 

 The validity and interpretation of
this Agreement shall be governed by the laws of the State of North Carolina. 
 Executed at Engelhard,
North Carolina this 22nd day of January, 2002. 
  

							
		 		 	THE EAST CAROLINA BANK
		 		 	Engelhard, North Carolina
				
	 /s/ Jo Ellen Cutrell
	 		 	By:	 	 /s/ J. Dorson White Executive Vice President

	Witness	 		 		 	     Title

				
	 /s/ Jo Ellen Cutrell
	 		 		 	 /s/ Thomas O. Davis

	Witness	 		 		 	T. Olin Davis

  

 8 

 EXHIBIT A 
 BENEFICIARY DESIGNATION FORM 
 FOR LIFE INSURANCE ENDORSEMENT METHOD 
 SPLIT DOLLAR PLAN AGREEMENT 
 PRIMARY DESIGNATION:

  

					
	Name	 	Address	 	Relationship
	
	  

	
	  

	
	  

 SECONDARY (CONTINGENT) DESIGNATION: 
  

	
	  

	
	  

	
	  

 All sums payable under the Life Insurance Endorsement Method Split Dollar Plan Agreement by reason of my death
shall be paid to the Primary Beneficiary, if he or she survives me, and if no Primary Beneficiary shall survive me, then to the Secondary (Contingent) Beneficiary. 
  

					
	 /s/ Thomas O. Davis
	 		  	1/25/2002
	T. Olin Davis	 		  	Date

  

 9

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