Document:

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                               EXHIBIT (10)(xiii)

                     EXECUTIVE SUPPLEMENTAL RETIREMENT PLAN

                                    AGREEMENT

        THIS AGREEMENT is made and entered into this ____ day of ______________,
2003, by and between the Home Savings Bank of Albemarle, SSB, a bank organized
and existing under the laws of the State of North Carolina (hereinafter referred
to as the "Bank"), and R. Ronald Swanner, 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 Home Savings Bank of Albemarle,
SSB Executive Supplemental Retirement Plan (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 Income
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

        WHEREAS, the Bank and the Executive are parties to a Retirement Payment
Agreement dated October of 1985 between Home Savings Bank of Albemarle, SSB and
R. Ronald Swanner that provides for the payment of certain benefits. This
Executive Supplemental Retirement Plan Agreement and the benefits provided
hereunder shall replace and supercede the existing Retirement Payment Agreement
and the benefits provided thereby;

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        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 February 18,
                2003.

        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 retirement from service with the Bank
                that becomes effective on the first day of the calendar month
                following the month in which the Executive reaches age
                sixty-five (65) or such later date as the Executive may actually
                retire.

        D.      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 sixty (60).

        E.      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 [D]).

        F.      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 [G]) for that Plan Year over the
                Opportunity Cost (Subparagraph I [H]) for that Plan Year,
                divided by a factor equal to 1.00 minus the marginal tax rate.

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        G.      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.

                Insurance Company:            Mass Mutual Life Insurance Company
                Policy Form:                  Flexible Premium Adjustable Life
                Policy Name:                  Strategic Life Executive
                Insured's Age and Sex:        55, Male
                Riders:                       None
                Ratings:                      None
                Option:                       Level
                Face Amount:                  $927,027
                Premiums Paid:                $423,300
                Number of Premium Payments:   Single
                Assumed Purchase Date:        February 18, 2003

                Insurance Company:            New York Life Insurance Company
                Policy Form:                  Flexible Premium Adjustable Life
                Policy Name:                  Strategic Life Executive
                Insured's Age and Sex:        55, Male
                Riders:                       None
                Ratings:                      None
                Option:                       Level
                Face Amount:                  $1,022,554
                Premiums Paid:                $423,200
                Number of Premium Payments:   Single
                Assumed Purchase Date:        February 18, 2003

                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

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                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.

        H.      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 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: (i) the average after tax yield of
                a one-year Treasury bill; or (ii) the Bank's annualized after
                tax cost of funds as calculated from the Bank's third quarter
                call report.

        I.      Change of Control:

                Change of Control means the cumulative transfer of more than
                fifty percent (50%) of the voting stock of the Bank from the
                Effective Date of this Executive Plan. For the purposes of this
                Executive Plan, transfers on account of deaths or gifts,
                transfers between family members or transfers to a qualified
                retirement plan maintained by the Bank shall not be considered
                in determining whether there has been a Change of Control.

        J.      Normal Retirement Age:

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

        K.      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. On the date of this agreement, said
                account shall have a pre-existing liability balance of One
                Hundred Ten Thousand Five Hundred and 00/100ths Dollars
                ($110,500.00).

II.     INDEX BENEFITS

        A.      Retirement Benefits:

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                Subject to Subparagraph II (E) hereinafter, an Executive who
                remains in the employ of the Bank until the Normal Retirement
                Age (Subparagraph I [J]) shall be entitled to receive an annual
                benefit amount equal to the amount set forth in Exhibit A-1.
                Said payments shall be made monthly and shall commence thirty
                (30) days following the Executive's retirement and shall
                continue until the Executive attains age seventy-six (76). Upon
                completion of the aforestated payments and commencing subsequent
                thereto and subject to Subparagraph II (A) (i) hereinbelow, the
                Index Retirement Benefit (Subparagraph I [F]) for each Plan Year
                subsequent to the year in which the Executive attains age
                seventy-six (76), and including the remaining portion of the
                Plan Year in which the Executive attains age seventy-six (76)
                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 first Plan Year subsequent to the
                        Executive attaining age seventy-six (76) 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-six (76) 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-six (76) 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-six (76) were
                        $1,000,000.00 then the Executive's Index Retirement
                        Benefit in the first Plan Year said payment is payable
                        to the Executive would be increased by $100,000.00. If
                        said number is a deficit, then the Index Retirement
                        Benefit for the Plan Year when the Executive attains age
                        seventy-six (76) 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-six (76) 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-six (76) were $900,000.00
                        and the Executive's Index Retirement Benefit was
                        $90,000.00 in the first year, then the Executive would

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                        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.      Early Retirement:

                Subject to Subparagraph II (E), should the Executive elect Early
                Retirement or be discharged without cause by the Bank subsequent
                to the Early Retirement Date [Subparagraph I (D)], 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 ten percent
                (10%). [For example, if Executive retires at age 61, the annual
                benefit set forth in Exhibit A-2 shall be reduced by forty
                percent (40%): 61-65 = 4 x 10 = 40%]. Said payments shall be
                made monthly and shall commence thirty (30) days following the
                Executive's early retirement and shall continue until the
                Executive attains age seventy-six (76). 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
                for each Plan Year subsequent to the year in which the Executive
                attains age seventy-six (76), and including the remaining
                portion of the Plan Year in which the Executive attains age
                seventy-six (76), shall be paid to the Executive until the
                Executive's death.

        C.      Termination of Service:

                Subject to Subparagraph II (E), should an Executive suffer a
                Termination of Service the Executive shall be entitled to
                receive the percentage set forth hereinbelow that corresponds to
                number of full years of employment from date of first employment
                and age of Executive while employed by the Bank only, to a
                maximum of eighty percent (80%), of the annual benefit set forth
                in Exhibit A-1. Said payments shall be made monthly and shall
                commence thirty (30) days following the Executive's Normal
                Retirement Age (Subparagraph I [J] and shall continue until the
                Executive attains age seventy-six (76). Upon completion of the
                aforestated payments and commencing subsequent thereto and
                subject to Subparagraph II (A) (i) hereinabove the Index
                Retirement Benefit for each Plan Year subsequent to the year in
                which the Executive attains age seventy-six (76), and including
                the remaining portion of the Plan Year in which the Executive
                attains age seventy-six (76), shall be paid to the Executive
                until the Executive's death.

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                Number full years and age            Vested percent
                -------------------------            --------------

                1-16 or more and less than 60        5% per year

                while employed by Bank only          to a maximum of 80%

                Age 60 or older while                100% and

                employed by Bank                     Subparagraph II (B) applies

        D.      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.

        E.      Discharge for Cause:

                Should the Executive be Discharged for Cause at any time, all
                benefits under this Executive Plan shall be forfeited. The term
                "for cause" shall mean any of the following that result in an
                adverse effect on the Bank: (i) gross negligence or gross
                neglect; (ii) the commission of a felony or gross misdemeanor
                involving moral turpitude, fraud, or dishonesty; (iii) the
                willful violation of any law, rule, or regulation (other than a
                traffic violation or similar offense); (iv) an intentional
                failure to perform stated duties; or (v) a breach of fiduciary
                duty involving personal profit. If a dispute arises as to
                discharge "for cause," such dispute shall be resolved by
                arbitration as set forth in this Executive Plan.

        F.      Disability Benefit:

                In the event the Executive becomes disabled prior to any
                Termination of Service, and the Executive's employment is
                terminated because of such disability, the Executive, upon
                submission to the Bank of written documentation and verification
                of disability, shall be one hundred percent (100%) vested in the
                accrued liability retirement account balance on the date of said
                disability. Said account shall be credited interest annually,
                until paid in full, at a rate of two percent (2%) plus the prime
                interest rate each Plan Year. Payment of such benefit shall be
                made in one (1) lump

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                sum when the Executive reaches his/her Normal Retirement Age.
                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 disability, then disability shall be as defined
                in the long term disability policy last in effect. 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.

        G.      Death Benefit:

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

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

        Upon a Change of Control (Subparagraph I [I]), if the Executive
        subsequently suffers a Termination of Service (Subparagraph I [E]), 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

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        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 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 agree,
                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:

                Subject to Paragraph VII, 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:

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                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.

        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. Section 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. Section 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.      Supersede and Entire Agreement:

                This Agreement shall supersede the Retirement Payment Agreement
                dated October of 1985, and shall constitute the entire agreement
                of the parties

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                pertaining to this particular Executive Supplemental Retirement
                Plan Agreement.

VI.     ERISA PROVISION

        A.      Named Fiduciary and Plan Administrator:

                The "Named Fiduciary and Plan Administrator" of this Executive
                Plan shall be Home Savings Bank of Albemarle, SSB, 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 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.

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                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, then the Bank
        reserves the right to terminate or modify this Agreement accordingly.
        Upon a Change of Control (Subparagraph I [I]), 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.

                                             HOME SAVINGS BANK OF
                                             ALBEMARLE, SSB
                                             Albemarle, NC

                                             By:
--------------------------------                --------------------------------
Witness                                                     Title

--------------------------------                --------------------------------
Witness                                                R. Ronald Swanner

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                          BENEFICIARY DESIGNATION FORM
                         FOR THE EXECUTIVE SUPPLEMENTAL
                            RETIREMENT PLAN AGREEMENT

I.      PRIMARY DESIGNATION
                (You may refer to the beneficiary designation information prior
                to completion of this form.)

        A.      PERSON(S) AS A PRIMARY DESIGNATION:
                (Please indicate the percentage for each beneficiary.)

        Name______________________   Relationship___________________  / _______%

        Address:_______________________________________________________________
                     (Street)              (City)       (State)          (Zip)

        Name______________________   Relationship___________________  / _______%

        Address:_______________________________________________________________
                     (Street)              (City)       (State)          (Zip)

        Name______________________   Relationship___________________  / _______%

        Address:_______________________________________________________________
                     (Street)              (City)       (State)          (Zip)

        Name______________________   Relationship___________________  / _______%

        Address:_______________________________________________________________
                     (Street)              (City)       (State)          (Zip)

        B.      ESTATE AS A PRIMARY DESIGNATION:

        My Primary Beneficiary is The Estate of   ______________________________

        _____ as set forth in the last will and testament dated the _____ day of

        _____________, _______ and any codicils thereto.

        C.      TRUST AS A PRIMARY DESIGNATION:

        Name of the Trust: _____________________________________________________

        Execution Date of the Trust: _____ / _____ / _________

        Name of the Trustee: ___________________________________________________

        Beneficiary(ies) of the Trust (please indicate the percentage for each
        beneficiary):

        ________________________________________________________________________

        ________________________________________________________________________

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        Is this an Irrevocable Life Insurance Trust?  ________ Yes   ________ No
        (If yes and this designation is for a Split Dollar agreement, an
        Assignment of Rights form should be completed.)

II.     SECONDARY (CONTINGENT) DESIGNATION

        A.      PERSON(S) AS A SECONDARY (CONTINGENT) DESIGNATION:
                (Please indicate the percentage for each beneficiary.)

        Name______________________   Relationship___________________  / _______%

        Address:_______________________________________________________________
                     (Street)              (City)       (State)           (Zip)

        Name______________________   Relationship___________________  / _______%

        Address:_______________________________________________________________
                     (Street)              (City)       (State)           (Zip)

        Name______________________   Relationship___________________  / _______%

        Address:_______________________________________________________________
                     (Street)              (City)       (State)           (Zip)

        Name______________________   Relationship___________________  / _______%

        Address:_______________________________________________________________
                     (Street)              (City)       (State)           (Zip)

        B.      ESTATE AS A SECONDARY (CONTINGENT) DESIGNATION:

        My Secondary Beneficiary is The Estate of   ____________________________

        ______ as set forth in my last will and testament dated the _____ day of

        _____________, _______ and any codicils thereto.

        C.      TRUST AS A SECONDARY (CONTINGENT) DESIGNATION:

        Name of the Trust:  ____________________________________________________

        Execution Date of the Trust: _____ / _____ / _________

        Name of the Trustee: ___________________________________________________

        Beneficiary(ies) of the Trust (please indicate the percentage for each
        beneficiary):

        ________________________________________________________________________

        ________________________________________________________________________

        All sums payable under the Executive Supplemental Retirement Plan
        Agreement by reason of my death shall be paid to the Primary
        Beneficiary(ies), if he or she survives me, and if no Primary
        Beneficiary(ies) shall survive me, then to the Secondary (Contingent)
        Beneficiary(ies). This beneficiary designation is valid until the
        participant notifies the bank in writing.

        ----------------------------                ----------------------------
        R Ronald Swanner                            Date

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                                   EXHIBIT A-1

        The Executive's annual benefit amount shall be One Hundred Twenty Two
Thousand Five Hundred Twenty-Two and 00/100ths Dollars ($122,522.00).<PAGE>

                                EXHIBIT (10)(xiv)

                                 LIFE INSURANCE

                      ENDORSEMENT METHOD SPLIT DOLLAR PLAN

                                    AGREEMENT

Insurer:                                Mass Mutual Life Insurance Company
                                        New York Life Insurance Company

Policy Number:                          _____________

Bank:                                   Home Savings Bank of Albemarle, SSB

Insured:                                R. Ronald Swanner

Relationship of Insured to Bank:        Executive

Trust:                                  Rabbi Trust for the Executive
                                        Supplemental Retirement Plan Agreement,
                                        Director Suppleemntal 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
        Suppleemntal 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 its

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        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 Split
        Dollar 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 payable upon the death of the Insured, and to elect and change
        a payment option for such beneficiary, subject to any right or interest
        the Trustee at the direction of the Bank or the Trust may have in such
        proceeds, as provided in this Agreement.

IV.     PREMIUM PAYMENT METHOD

        Subject to the Bank's absolute right to surrender or terminate the
        policy at any time and for any reason, 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 assumed
        cost of insurance 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.      Should the Insured be employed by the Bank at death, the
                Insured's beneficiary(ies), designated in accordance with
                Paragraph III, shall be entitled to an amount equal to
                ninety-five percent (95%) of the net-at-risk insurance portion
                of the proceeds. 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, the Insured's beneficiary(ies), designated in
                accordance with Paragraph III, shall be entitled to the
                percentage as set forth hereinbelow of the proceeds described in
                Subparagraph VI (A) above that corresponds to the number of full
                years the Insured has been employed by the Bank since

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                the date of first employment and the Insured's age while
                employed by the Bank.

                Number full years and age            Vested percent
                -------------------------            --------------

                1-16 or more and less than 60        5% per year

                while employed by Bank only          to a maximum of 80%

                Age 60 or older while                100%

                employed by Bank

        C.      The Bank shall be entitled to the remainder of such proceeds.

        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.

VII.    DIVISION OF THE CASH SURRENDER VALUE OF THE POLICY

        The Bank or the Trust 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 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' 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 like 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:

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        A.      The Insured shall be discharged from employment with the Bank
                for cause. The term "for cause" shall mean any of the following
                that result in an adverse effect on the Bank: (i) gross
                negligence or gross neglect; (ii) the commission of a felony or
                gross misdemeanor involving moral turpitude, fraud, or
                dishonesty; (iii) the willful violation of any law, rule, or
                regulation (other than a traffic violation or similar offense);
                (iv) an intentional failure to perform stated duties; or (v) a
                breach of fiduciary duty involving personal profit; or

        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 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:

        A.      The Bank's or the Trust' share of the cash value of the policy
                on the date of such assignment, as defined in this Agreement; or

        B.      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 at the
        direction of the Bank, their heirs, successors, personal representatives
        and assigns.

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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 Home Savings Bank of
                Albemarle, SSB 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.

        B.      Funding Policy.

                Subject to the Bank's absolute right to surrender or terminate
                the policy at any time and for any reason, 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.

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                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.

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 be deemed to be the cumulative transfer of more
        than fifty percent (50%) of the voting stock of the Bank from the date
        of this Agreement. For the purposes of this Agreement, transfers on
        account of death or gifts, transfers between family members, or
        transfers to a qualified retirement plan maintained by the Bank shall
        not be considered in determining whether there has been a Change of
        Control. 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, 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

        Subject to the Bank's absolute right to surrender or terminate the
        policy at any time and for any reason, 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.

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XVII.   EFFECTIVE DATE

        The Effective Date of this Agreement shall be February 18, 2003.

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 Albemarle, North Carolina this ______ day of ___________, 2003.

                                             HOME SAVINGS BANK OF
                                             ALBEMARLE, SSB
                                             Albemarle, North Carolina

                                             By:
--------------------------------                --------------------------------
Witness                                                     Title

--------------------------------                --------------------------------
Witness                                         R. Ronald Swanner

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                          BENEFICIARY DESIGNATION FORM
                    FOR THE LIFE INSURANCE ENDORSEMENT METHOD
                           SPLIT DOLLAR PLAN AGREEMENT

I.      PRIMARY DESIGNATION
                (You may refer to the beneficiary designation information prior
                to completion.)

        A.      PERSON(S) AS A PRIMARY DESIGNATION:
                (Please indicate the percentage for each beneficiary.)

        Name______________________   Relationship___________________  / _______%

        Address:_______________________________________________________________
                     (Street)              (City)       (State)          (Zip)

        Name______________________   Relationship___________________  / _______%

        Address:_______________________________________________________________
                     (Street)              (City)       (State)          (Zip)

        Name______________________   Relationship___________________  / _______%

        Address:_______________________________________________________________
                     (Street)              (City)       (State)          (Zip)

        Name______________________   Relationship___________________  / _______%

        Address:_______________________________________________________________
                     (Street)              (City)       (State)          (Zip)

        B.      ESTATE AS A PRIMARY DESIGNATION:

        My Primary Beneficiary is The Estate of   ______________________________

        _____ as set forth in the last will and testament dated the _____ day of

        _____________, _______ and any codicils thereto.

        C.      TRUST AS A PRIMARY DESIGNATION:

        Name of the Trust: _____________________________________________________

        Execution Date of the Trust: _____ / _____ / _________

        Name of the Trustee: ___________________________________________________

        Beneficiary(ies) of the Trust (please indicate the percentage for each
        beneficiary):

        ________________________________________________________________________

        ________________________________________________________________________

        Is this an Irrevocable Life Insurance Trust?  ________ Yes   ________ No
        (If yes and this designation is for a Split Dollar agreement, an
        Assignment of Rights form should be completed.)

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II.     SECONDARY (CONTINGENT) DESIGNATION

        A.      PERSON(S) AS A SECONDARY (CONTINGENT) DESIGNATION:
                (Please indicate the percentage for each beneficiary.)

        Name______________________   Relationship___________________  / _______%

        Address:_______________________________________________________________
                     (Street)              (City)       (State)          (Zip)

        Name______________________   Relationship___________________  / _______%

        Address:_______________________________________________________________
                     (Street)              (City)       (State)          (Zip)

        Name______________________   Relationship___________________  / _______%

        Address:_______________________________________________________________
                     (Street)              (City)       (State)          (Zip)

        Name______________________   Relationship___________________  / _______%

        Address:_______________________________________________________________
                     (Street)              (City)       (State)          (Zip)

        B.      ESTATE AS A SECONDARY (CONTINGENT) DESIGNATION:

        My Secondary Beneficiary is The Estate of   ____________________________

        ______ as set forth in my last will and testament dated the _____ day of

        _____________, _______ and any codicils thereto.

        C.      TRUST AS A SECONDARY (CONTINGENT) DESIGNATION:

        Name of the Trust:  ____________________________________________________

        Execution Date of the Trust: _____ / _____ / _________

        Name of the Trustee: ___________________________________________________

        Beneficiary(ies) of the Trust (please indicate the percentage for each
        beneficiary):

        ________________________________________________________________________

        ________________________________________________________________________

        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(ies), if he or she survives me, and if no Primary
        Beneficiary(ies) shall survive me, then to the Secondary (Contingent)
        Beneficiary(ies). This beneficiary designation is valid until the
        participant notifies the bank in writing.

        ----------------------------                ----------------------------
        R Ronald Swanner                            Date

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