Document:

Exhibit 10.5

                         FOUR OAKS BANK & TRUST COMPANY

                              AMENDED AND RESTATED
                         EXECUTIVE EMPLOYMENT AGREEMENT
                         ------------------------------

     THIS AMENDED AND RESTATED EXECUTIVE EMPLOYMENT  AGREEMENT  ("Agreement") is
entered into as of this 11th day of December, 2008 by and between FOUR OAKS BANK
& TRUST COMPANY, a North Carolina banking corporation (the "Bank"),  and JEFF D.
POPE ("Employee").

                              W I T N E S S E T H :

     WHEREAS,  the Bank and  Employee  are  parties to an  Executive  Employment
Agreement  dated  October  23,  1995  ("Employment  Agreement")  and a Severance
Compensation   Agreement  dated  October  23,  1995   ("Severance   Compensation
Agreement"); and

     WHEREAS,  the Bank and Employee  desire to amend and restate the Employment
Agreement as provided herein to incorporate  the  substantive  provisions of the
Severance  Compensation  Agreement  and to make certain  other  revisions and to
terminate the Severance Compensation Agreement; and

     WHEREAS, the Bank desires that Employee continue as an Employee of the Bank
and continue to serve as Executive Vice President, Branch Administrator; and

     WHEREAS,  Employee desires to continue to be an employee of the Bank and to
continue to serve as Executive Vice President, Branch Administrator;

     NOW,  THEREFORE,  in  consideration  of the  promises  and  of  the  mutual
covenants contained in this Agreement, the Bank and Employee agree as follows:

     1.  Employment.  Employee shall serve the Bank as Executive Vice President,
Branch Administrator with such duties,  responsibilities and authorities of such
office as may be assigned  to him and as are  customarily  associated  with such
office.

     2. Term.  The  original  term of this  Agreement  shall be for the one year
period  commencing on the date of this Agreement and terminating one year later,
unless earlier terminated as set forth in this Agreement. Upon the expiration of
the original term or any extension  term,  the term of this  Agreement  shall be
automatically  extended  for an  additional  period of one (1) year  unless such
automatic  extension is declined by either party by written  notice given to the
other party not less than  ninety  (90) days before the end of the then  current
term of this  Agreement.  During any extension term, all terms and provisions of
this Agreement shall be applicable and in full force.

<PAGE>

     3.  Compensation and Benefits.  In consideration of his services during the
term of this Agreement,  Employee shall be paid compensation and benefits by the
Bank as follows:

          (a) Base  Salary.  Employee  will receive an annual base salary of One
Hundred  Forty-Seven  Thousand  Seven  Hundred  Forty-Three  and 04/100  Dollars
($147,743.04)  payable in monthly  installments.  Employee  will be  entitled to
receive such increases in his annual base salary as may be approved by the Board
of Directors of the Bank  ("Board"),  with each such increase  being included in
his annual base salary for all purposes.

          (b) Additional Benefits.  Employee shall be entitled to receive and to
participate,  subject to any eligibility requirements, in all benefits generally
made available to the Bank's officers and also those generally made available to
all  salaried  employees  of the Bank  including,  but not limited to, any bonus
plans,   stock  options,   insurance   benefits,   vacation,   sick  leave,  and
reimbursement  of  expenses  incurred  on  behalf  of the Bank in the  course of
performing duties under this Agreement.

     4. Termination and Compensation  Upon  Termination.  Employee's  employment
under this Agreement shall terminate:

          (a) Upon the death of Employee.

          (b) Upon  written  notice  from the Bank to  Employee  in the event of
Employee's  physical or mental  inability to perform the essential  functions of
his duties for 180  consecutive  days or 180 days  total in any  365-day  period
("Disability")  as  determined  by the Board or a committee  of the Board in its
reasonable discretion and in accordance with applicable law.

          (c)  Immediately  upon  written  notice  from  the Bank for any of the
following reasons which shall constitute "Cause" :

               (i)  the   willful   and   continued   failure  by   Employee  to
substantially  perform his duties  with the Bank  (other  than any such  failure
resulting from his  Disability)  after a demand for  substantial  performance is
delivered  to Employee by the Bank's  Chief  Executive  Officer,  the Board or a
committee of the Board which  specifically  identifies the manner in which he or
it believes that Employee has not substantially performed his duties;

               (ii)  the  willful  engaging  by  Employee  in  gross  misconduct
materially and demonstratively injurious to the Bank; or

               (iii) the conviction of Employee of any crime  involving fraud or
dishonesty.

          (d) Upon  ninety (90) days'  written  notice from the Bank to Employee
for any  reason  other  than  death,  Disability,  or Cause (a  "without  Cause"
termination).

     If  Employee's   employment   is  terminated   pursuant  to  Sections  4(b)
(Disability) or 4(d) (without  Cause) above,  then Employee shall be entitled to
receive an amount equal to his then current  monthly salary (less any applicable
taxes and  withholdings) for the greater of six (6) months or the then remaining
term of this  Agreement,  payable in a lump sum within  thirty  (30) days of the
date of termination of employment.

                                       2
<PAGE>

     5. Change in Control.

          (a) Definition of Change in Control. For purposes of this Agreement, a
"Change in Control" means one or more of the following occurrences:

               (i) A corporation, person or group acting in concert as described
in  Section  14(d)(2)  of the  Securities  Exchange  Act  of  1934,  as  amended
("Exchange Act"), holds or acquires  beneficial  ownership within the meaning of
Rule 13d-3  promulgated  under the  Exchange Act of a number of shares of voting
capital  stock of Four Oaks  Fincorp,  Inc.,  the  holding  company  of the Bank
("FOF"),  which constitutes more than  thirty-three  percent (33%) of FOF's then
outstanding shares entitled to vote.

               (ii) The consummation of a merger, share exchange, consolidation,
or  reorganization  involving FOF and any other corporation or other entity as a
result of which less than fifty  percent  (50%) of the combined  voting power of
FOF  or  of  the  surviving  or  resulting  corporation  or  entity  after  such
transaction is held in the aggregate by the holders of the combined voting power
of the outstanding securities of FOF immediately prior to such transaction.

               (iii) All or  substantially  all of the assets of the Bank or FOF
are sold,  leased,  or  disposed  of in one  transaction  or a series of related
transactions.

               (iv) An  agreement,  plan,  contract,  or  other  arrangement  is
entered into  providing for any  occurrence  which as defined in this  Agreement
would constitute a Change in Control.

          (b) Termination Following a Change in Control.

               (i) Employee  shall be entitled to receive  payments and benefits
pursuant to this  Agreement if  Employee's  employment is terminated by the Bank
within two (2) years following a Change in Control without Cause.

               (ii) Employee shall be entitled to receive  payments and benefits
pursuant to this Agreement if Employee  terminates his employment  with the Bank
for "Good Reason"  within two (2) years  following a Change in Control and after
having  given  the  Bank  written  notice  of the  existence  of  the  condition
constituting  Good Reason within  ninety (90) days of its initial  existence and
providing the Bank with a period of at least thirty (30) days to remedy the Good
Reason condition. For purposes of this Agreement, a condition constituting "Good
Reason" shall mean the  occurrence of any of the following  events or conditions
without Employee's consent:

                    (x)  a   change   in   Employee's   authority,   duties   or
responsibilities  (including  reporting  responsibilities)  which  represents  a
material adverse change from his authority, duties or responsibilities in effect
immediately prior thereto;

                    (y) a material reduction in Employee's base salary; or

                    (z) the Bank's  requiring  Employee to be based at any place
outside a thirty (30) mile radius from  Employee's  current  principal  place of
work, except for reasonably  required travel on the Bank's business which is not
greater than such travel requirements prior to the Change in Control.

                                       3
<PAGE>

          (c) Severance Pay and Benefits. If Employee's employment with the Bank
terminates  under the  circumstances  described in Section 5(b) above,  Employee
shall be entitled to receive all of the following:

               (i) all accrued  compensation  through the termination date, plus
any  bonus  for  which  Employee  otherwise  would  be  eligible  in the year of
termination, prorated through the termination date, payable in a lump sum within
thirty (30) days of the date of termination of employment.

               (ii) a  severance  payment  equal to two (2) times the  amount of
Employee's  most recent  annual  compensation,  including the amount of his most
recent bonus.  The  severance  payment shall be paid in a lump sum within thirty
(30) days of the date of termination of employment.

               (iii)  during the  twenty-four  (24) month period  following  the
termination of employment,  or if sooner, until comparable coverage is available
to Employee in connection  with subsequent  employment,  the Bank will reimburse
Employee  for the  additional  costs he incurs  in  obtaining  health  insurance
benefits  equivalent to the group benefit plans in which  Employee  participated
prior to termination as follows:  (a) the Bank shall reimburse  Employee for the
additional  costs of  continuing  group  health  insurance  benefits  under  the
Consolidated  Omnibus Budget  Reconciliation Act ("COBRA") for a period of up to
eighteen  (18)  months  from the  date of  termination;  and (b) for the  period
immediately  following the end of such eighteen (18) month period and continuing
to the end of the twenty-four (24) month period, Employee shall also be entitled
to be reimbursed for the  additional  reasonable  costs of obtaining  comparable
health  insurance  coverage through an insurance policy or policies he purchases
on his own.

               Employee  shall bear full  responsibility  for applying for COBRA
coverage and for obtaining  coverage under any other insurance policy subject to
reimbursement under this Section and nothing herein shall constitute a guarantee
of COBRA  continuation  coverage or benefits or a guarantee of  eligibility  for
health insurance coverage. All reimbursements  required by this Section shall be
paid as soon as practicable  following Employee's  submission of proof of timely
premium payments to the Bank;  provided,  however,  that all such reimbursements
shall be made on or  before  the  last day of the  taxable  year  following  the
taxable year in which the expenses were incurred.  Under no  circumstances  will
Employee be entitled to a cash payment or other benefit in lieu of reimbursement
for the actual costs of premiums for health  coverage  hereunder.  The amount of
expenses  eligible  for  reimbursement  during  any  calendar  year shall not be
affected  by the amount of  expenses  eligible  for  reimbursement  in any other
calendar  year and  Employee's  right to  reimbursement  shall not be subject to
liquidation or exchange for any other benefit.

               Employee  shall  provide  the  Bank  with  notice  of  subsequent
employment and comparable  coverage  within thirty (30) days of  commencement of
such comparable coverage.

     6.  Delayed  Distribution  to Key  Employees.  If the Bank  determines,  in
accordance  with  Sections  409A and  416(i)  of the  Code  and the  regulations
promulgated  thereunder,  in the Bank's sole discretion,  that Employee is a Key
Employee of the Bank on the date Employee's  employment with the Bank terminates
and that a delay in severance pay and benefits  provided under this Agreement is
necessary  for  compliance  with Section  409A(a)(2)(B)(i),  then any  severance
payments and any  continuation  of benefits or  reimbursement  of benefit  costs
provided under this  Agreement and not otherwise  exempt from Section 409A shall
be delayed  for a period of six (6) months (the "409A  Delay  Period").  In such
event,  any such  severance  payments and the cost of any such  continuation  of
benefits  provided under this Agreement that would  otherwise be due and payable
to Employee during the 409A Delay Period shall be paid to Employee in a lump sum
cash  amount  in the  month  following  the end of the 409A  Delay  Period.  For
purposes of this  Agreement,  "Key  Employee"  shall mean an employee who, on an
Identification Date ("Identification Date" shall mean each December 31) is a key
employee as defined in Section  416(i) of the Code  without  regard to paragraph
(5)  of  that  section.  If  Employee  is  identified  as a Key  Employee  on an
Identification  Date,  then  Employee  shall be  considered  a Key  Employee for
purposes  of this  Agreement  during the period  beginning  on the first April 1
following the Identification Date and ending on the following March 31.

                                       4
<PAGE>

     A  termination  of  employment  shall not be deemed  to have  occurred  for
purposes of any  provision of this  Agreement  providing  for the payment of any
amounts or benefits  upon or following a termination  of employment  unless such
termination  also  constitutes a "Separation from Service" within the meaning of
Section 409A and, for purposes of this Agreement, references to a "termination,"
"termination of employment,"  "separation from service" or like terms shall mean
a Separation from Service.

     7.  Non-Assignability.  This Agreement shall not be assignable by Employee.
This  Agreement  shall not be  assignable  by the Bank without the prior written
consent of Employee except to a corporation which is the surviving entity in any
merger   involving  the  Bank  or  to  a  corporation   which  acquires  all  or
substantially all of the stock or assets of the Bank.

     8. Modification.  This Agreement sets forth all the terms and conditions of
the  employment  arrangement  between  Employee and the Bank and can be modified
only by a writing  signed  by both  parties.  No waiver by either  party to this
Agreement at any time of a breach of the other party of, or compliance with, any
condition  or  provision  of this  Agreement to be performed by such other party
shall be deemed a waiver of similar or  dissimilar  provisions  or conditions at
the same or at any prior or subsequent time.

     9.  Counterparts;  Construction.  This Agreement may be executed in several
identical  counterparts,  each of which  when so  executed  shall be  deemed  an
original,   but  all  such  counterparts  shall  constitute  one  and  the  same
instrument.  This Agreement  shall be governed by, and construed and enforced in
accordance with, the laws of the State of North Carolina.

     10. Severability.  Should any provision of this Agreement be declared to be
invalid  for any reason or to have  ceased to be binding  on the  parties,  such
provision  shall be severed,  and all other  provisions  shall be effective  and
binding.

     11. Termination of Severance Compensation Agreement. The parties agree that
the Severance Compensation Agreement is hereby terminated.

                                       5
<PAGE>

     12.  Notice.  All  necessary  notices,  demands,  and requests  required or
permitted  under this Agreement  shall be in writing and shall be deemed to have
been duly given if  delivered  in person or mailed by  certified  mail,  postage
prepaid, addressed as follows:

     If to Employee:  Jeff D. Pope
                      106 Lake Ridge Drive
                      Smithfield, North Carolina 27577

     If to Bank:      Four Oaks Bank & Trust Company
                      6114 U.S. 301 South
                      Post Office Box 309
                      Four Oaks, North Carolina 27524

or to such other address as shall be furnished by either party.

     IN WITNESS WHEREOF,  the parties have executed this Agreement as of the day
and year first above written.

                                                  FOUR OAKS BANK & TRUST COMPANY

                                                  By: /s/ Wanda J. Blow, V.P.
                                                      --------------------------
                                                      Authorized Officer

                                                  EMPLOYEE

                                                  /s/ Jeff D. Pope
                                                  ------------------------------
                                                  Jeff D. Pope

                                       6Exhibit 10.6

                         FOUR OAKS BANK & TRUST COMPANY
                             SUPPLEMENTAL EXECUTIVE
                                 RETIREMENT PLAN

                                AYDEN R. LEE, JR.

                   Originally Effective as of January 1, 1998
                  Amended and Restated as of December 12, 2008

<PAGE>

                         FOUR OAKS BANK & TRUST COMPANY
                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
                                AYDEN R. LEE, JR.

                                    ARTICLE I
                                  INTRODUCTION

     1.1 In General. This Plan is an optional deferred compensation plan that is
intended to provide supplemental retirement benefits to Ayden R. Lee, Jr.,
President of Four Oaks Bank & Trust Company (the "Participant"), to encourage
the Participant to remain as an employee of Four Oaks Bank & Trust Company and
any successor thereto (the "Bank") and to reward him for contributing materially
to the success of the Bank. The Plan shall be construed and interpreted for
purposes of the Code and ERISA as an unfunded plan maintained primarily for the
purpose of providing deferred compensation for a select group of management or
highly compensated employees within the meaning of ERISA Section 201(2).

     1.2 Name. This instrument and any amendments hereto shall be known as the
Four Oaks Bank & Trust Company Supplemental Executive Retirement Plan (herein
referred to as the "Plan").

     1.3 Effective Date. The Plan was originally effective as of January 1, 1998
(the "Effective Date"). It was amended and restated effective as of December 12,
2008 to comply with the requirements of Section 409A of the Code.

                                   ARTICLE II
                                   DEFINITIONS

     2.1 "Account Balance" means the estimated account balance in the
Participant's 401(k) plan sponsored by the Bank. The estimation assumes that the
Participant will contribute to the Bank's 401(k) plan the minimum amount
necessary at the last day of each year to receive the maximum matching
contribution from the Bank for that year. This account balance is accumulated
each year using the interest rate prescribed for employee contributions under
Section 411(c)(2)(C)(iii) of the Internal Revenue Code, as of the first day of
the plan year. For purposes of this Plan, Participant's Account Balance as of
January 1, 1998, was $228,372, to which contributions and earnings have and will
be added. It is understood and agreed to by the parties that on any given date
after the Effective Date, the Account Balance likely will not be the same amount
as the actual dollar amount of the Participant's account balance in the 401(k)
plan sponsored by the Bank.

     2.2 "Actuarial Equivalence" means present values calculated using the
interest rate on 30-year treasury securities for the month prior to the first
day of the plan year, as prescribed by the Retirement Protection Act of 1994,
and the 1983 Group Annuity Mortality Tables used for lump sum purposes under the
Retirement Protection Act of 1994.

                                       2
<PAGE>

     2.3 "Average Annual Compensation" means the annual average of the
Compensation received by Participant during his three (3) consecutive years of
Service with respect to which the Participant receives the highest Compensation
that occurs within his five (5) years of Service immediately preceding his
Retirement or earlier termination of employment, or if less, the number of
complete calendar years during his period of participation.

     2.4 "Beneficiary" means such person designated by the Participant in a
written instrument filed with the Board to receive any death benefit that is
payable under this Plan. In the event no valid Beneficiary designation exists at
the time of the Participant's death, the death benefit shall be payable to his
spouse or, if there is no surviving spouse, to his estate.

     2.5 "Board" means the Board of Directors of the Bank.

     2.6 "Change in Control" means, for purposes of this Plan, that a change
shall have occurred upon any purchase, assignment, merger, consolidation, pledge
or transfer of any kind (e.g., voluntary, involuntary or by operation of law) of
the voting securities of the Bank or FOFN, or an increase in percentage of
ownership of the Bank or FOFN resulting from a redemption of voting securities
(any of the foregoing transactions hereinafter referred to as an "Acquisition")
if, after the Acquisition, (i) the acquiring party (or parties acting in
concert) owns, controls, or holds the power to vote more than fifty percent
(50%) of the total voting power of the securities of the Bank or FOFN, as
applicable, (ii) the Bank or FOFN, as applicable, is not the surviving entity
and immediately after the Acquisition, the acquiring party (or parties acting in
concert) owns, controls, or holds the power to vote more than fifty percent
(50%) of the total voting power of the securities of the surviving entity, or
(iii) the directors of the Bank or FOFN, as applicable, immediately prior to the
Acquisition constitute less than a majority of the board of directors of the
surviving entity.

     2.7 "Code" means the Internal Revenue Code of 1986, as amended, and any
successor statue thereof, as interpreted by the rules and regulations issued
thereunder, in each case as in effect from time to time.

     2.8 "Compensation" means the total compensation paid by the Bank to the
employee during any plan year for services performed that would otherwise be
includible in gross income. Compensation taken into account for this purpose
shall be the compensation paid to the employee prior to any reduction under (i)
a salary reduction agreement entered into by the Participant pursuant to a plan
maintained by the Bank that qualifies under Section 401(k) of the Code, or (ii)
a salary reduction agreement entered into by the Participant pursuant to a plan
maintained by the Bank that qualifies under Section 125 of the Code.

     2.9 "Disability" or "Disabled" means the Participant is, by reason of any
medically determinable physical or mental impairment which can be expected to
result in death or can be expected to last for a continuous period of not less
than twelve (12) months, receiving income replacement benefits for a period of
not less than three (3) months under an accident and health plan covering
employees of the Bank. Notwithstanding the foregoing, the Participant shall be
deemed Disabled if he is determined to be totally disabled by the Social
Security Administration.

                                       3
<PAGE>

     2.10 "Early Retirement Date" means the first day of the month (prior to the
Normal Retirement Date) coinciding or next following the date on which the
Participant or former Participant attains his 55th birthday (Early Retirement
Age).

     2.11 "Employer" means the Bank, and any entity required to be aggregated
with the Bank by Sections 414(b), (c), (m), or (o) of the Code.

     2.12 "ERISA" means the Employee Retirement Income Security Act of 1974 as
it may be amended from time to time.

     2.13 "401(k) Offset Benefit" means the Account Balance as of the date of
retirement or other termination of employment, divided by the present value of
one dollar paid at the beginning of each year for the Participant's lifetime,
determined as of the date of retirement or termination, as the case may be,
using the definition of Actuarial Equivalence, as set forth in Section 2.2 of
this Plan.

     2.14 "FOFN" means Four Oaks Fincorp, Inc., a North Carolina corporation, or
any successor thereto.

     2.15 "Normal Form of Payment" means a monthly annuity payable for the
Participant's lifetime, to be paid to the Participant, or, in the case of the
Participant's death, his named beneficiary or estate.

     2.16 "Normal Retirement Date" means the first day of the month coinciding
or next following the Participant's Normal Retirement Age (65th birthday).

     2.17 "Service" means the Participant's period of employment with the
Employer, measured in years and completed months, beginning not earlier than the
Effective Date of this Plan.

     2.18 "Social Security Benefit" means the annual Primary Insurance Amount
estimated to be payable to the Participant at age 65 under the Federal Social
Security Act assuming continued Compensation to age 65 after retirement or
termination and projected prior Compensation based on a estimated wage history
projected backwards utilizing changes in average wages from year to year as
determined by the Social Security Administration. It is understood and agreed to
by the parties that in certain circumstances, the Social Security Benefit may
result in an offset in benefits payable to the Participant under the terms of
this Plan, even though the Participant may not yet have reached the age to
receive an actual social security benefit payment from the Social Security
Administration.

     2.19 "Vested" means that the benefit payable under this Plan with respect
to the Participant is nonforfeitable.

                                       4
<PAGE>

                                   ARTICLE III
                              DEFERRED COMPENSATION

     3.1 Normal Retirement. Upon retirement on or after his Normal Retirement
Age, the Employer shall pay the Participant an annual supplemental retirement
benefit (which benefit is herein called his Normal Retirement Benefit), subject
to Section 3.7, equal to the sum of seventy-five percent (75%) of the
Participant's Average Final Compensation reduced by the Participant's (i) 401(k)
Offset Benefit and (ii) Social Security Benefit. The Participant shall become
fully Vested in his Normal Retirement Benefit upon attaining Normal Retirement
Age. The Normal Retirement Benefit shall be payable, according to the Normal
Form of Payment, in monthly installments commencing on the first day of the
month following the Participant's retirement on or after his Normal Retirement
Date and continuing on the first of each month thereafter for the Participant's
lifetime.

     3.2 Early Retirement. Upon retirement on or after his Early Retirement Age
but prior to his Normal Retirement Date, the Employer shall pay, in lieu of a
Normal Retirement Benefit, the Participant an annual supplemental retirement
benefit (which benefit is herein called his Early Retirement Benefit), subject
to Section 3.7, of a certain percentage of the Normal Retirement Benefit, to be
determined as follows:

                                                  Early Retirement Benefit as a
         Age at Retirement                       Percentage of Normal Retirement
         -----------------                       -------------------------------

               55                                               58%
               56                                               64%
               57                                               70%
               58                                               76%
               59                                               82%
               60                                               88%
               61                                               94%
               62                                              100%
               63                                              100%
               64 or older                                     100%

The Early Retirement Benefit shall be payable, according to the Normal Form of
Payment, in monthly installments commencing on the first day of the month
following the Participant's retirement on or after his Early Retirement Date and
continuing on the first of each month thereafter for the Participant's lifetime.

     3.3 Deferred Vested Benefit. Upon termination of employment from the
Employer at any time before age 55 (for any reason other than death, Disability
as defined in Section 3.5 or a Change in Control, as defined in Section 3.6),
the Participant shall not be entitled to any benefits under this Plan.

                                       5
<PAGE>

     3.4 Death Benefit. If the Participant dies before the commencement of the
payment of benefits payable under Sections 3.1, 3.2, or 3.5, the Employer shall
pay to his Beneficiary a death benefit (which benefit is herein called his
Pre-retirement Survivor Benefit). An annual vested benefit is calculated in the
same manner as the Normal Retirement Benefit, but using the Average Annual
Compensation, 401(k) Offset Benefit and Social Security Benefit as of the date
of death, multiplied by the ratio of the Participant's Service as of the date of
death over the Participant's projected Service at Normal Retirement Date. If the
Participant was eligible to retire at the date of death, in no event shall the
annual vested benefit be less than what the Participant would have received if
he had retired as of the date of his death. The annual vested benefit as
described above in this Section 3.4 shall then be converted to a lump sum by
multiplying the annual vested benefit by the present value of one dollar paid at
the beginning of each year for the Participant's life expectancy, determined
immediately before the Participant's death, using the Actuarial Equivalence
definition as stated in Section 2.2 of this Plan. The lump sum amount so
determined is hereafter referred to as the Pre-retirement Survivor Benefit, and
shall be paid to the Participant's Beneficiary in 60 equal monthly installments,
including interest, at an interest rate determined by reference to Section 2.2
of this Plan. Such monthly payments shall commence on the first day of the
second month following the date of the Participant's death and continue on the
first of each month thereafter for 59 months.

     If the Participant dies after the commencement of the payment of benefits
payable under Sections 3.1, 3.2, or 3.5, the Employer shall pay to his
Beneficiary a death benefit (which benefit is herein called his Survivor
Benefit) equal to the annual vested benefit payable to the Participant
immediately prior to his death, multiplied by the present value of one dollar
paid at the beginning of each year for the Participant's life expectancy,
determined immediately before the Participant's death, using the Actuarial
Equivalence definition as stated in Section 2.2 of this Plan. The lump sum
amount hereafter referred to as the Survivor Benefit, so determined shall be
paid to the Participant's Beneficiary in 60 equal monthly installments,
including interest, at an interest rate determined by reference to Section 2.2
of this Plan. Such monthly payments shall commence on the first day of the
second month following the date of the Participant's death and continue on the
first of each month thereafter for 59 months..

     3.5 Benefit Payable on Disability. In the event of the Participant's
Disability, a disability benefit shall be payable from this Plan. The annual
disability retirement benefit shall be calculated in the same manner as the
Normal Retirement Benefit, but using the Participant's Average Annual
Compensation, 401(k) Offset Benefit and Social Security Benefit as of the date
of Disability, multiplied by the ratio of the Participant's Service as of the
date of Disability over the Participant's projected Service at Normal Retirement
Date. If the Participant was eligible to retire at the date of Disability, in no
event shall this disability benefit be less than what the Participant would have
received if he had retired at the date of Disability instead. A monthly amount
(equal to 1/12th of the annual disability retirement benefit) shall be payable
as an annuity under the Normal Form of Payment, with such payments commencing on
the first day of the second month following the month in which the Participant
became Disabled and continuing on the first of each month thereafter for the
Participant's lifetime.

                                       6
<PAGE>

     3.6 Benefit Payable on Change in Control. If a Change in Control, as
defined in Section 2.7 occurs and the Participant's employment with the Employer
terminates within twenty-four (24) months thereafter for any reason (other than
termination for cause by Employer), a vested benefit shall be payable from this
Plan. The annual vested benefit is calculated in the same manner as the Normal
Retirement Benefit, but using the Average Annual Compensation, 401(k) Offset
Benefit and Social Security Benefit as of the date of vesting, multiplied by the
ratio of the Participant's Service as of the date of vesting over the
Participant's projected Service at Normal Retirement Date. If the Participant
was eligible to retire at the date of vesting, in no event shall this vested
benefit be less than what the Participant would have received if he had retired
at the date of vesting instead. The annual vested benefit shall be converted to
a lump sum by multiplying the annual vested benefit by the present value of one
dollar paid at the beginning of each year for the Participant's life expectancy,
using the Actuarial Equivalence definition as stated in Section 2.2 of this
Plan. The lump sum amount, as so determined, shall be paid to the Participant
within 30 days after the Participant's employment terminates as described above.

     3.7 Limitation on Benefits. Notwithstanding anything in this Plan to the
contrary, the maximum annual benefit payable under this Plan shall not exceed
$50,000 per year, payable at the Normal Retirement Age. If, prior to the
Participant's Normal Retirement Age, a benefit is or becomes payable because of
the Participant's death, a Change in Control, the Participant's Disability, or
on or after the Participant attains Early Retirement Age, the benefit payable to
the Participant shall be determined as follows: The maximum life annuity of
$50,000 per year at Normal Retirement Age shall be reduced 5% per year for each
year (up to a maximum 10 year reduction) that the benefit becomes payable prior
to the Participant's Normal Retirement Age, so that the annual benefit at age 55
(or earlier age in the event of death, Disability or Change in Control) shall be
based upon a life annuity not to exceed $25,000 per year.

     To the extent a single lump sum payment is made involving one of the above
contingencies, the single lump sum payment shall not exceed the present value of
the maximum life annuity payable as given above, using the definition of
Actuarial Equivalence, as set forth in Section 2.2 of this Plan.

                                   ARTICLE IV
                                  MISCELLANEOUS

     4.1 Indemnification of Board. In addition to such other rights of
indemnification as they may have as directors or as members of the Committee,
the members of the Board or Committee shall be indemnified by the Employer
against the reasonable expenses, including attorneys' fees, actually and
necessarily incurred in connection with the defense of any action, suit, or
proceedings, or in connection with any appeal therein, to which they or any of
them may be a part by reason of any action taken in connection with this Plan,
and against all amounts paid by them in settlement thereof (provided such
settlement is approved by independent legal counsel selected by the Bank) or
paid by them in satisfaction of a judgment in any such action, suit, or
proceeding, except in relation to matters as to which it shall be adjudged in
such action, suit, or proceeding that such member is liable for negligence or
misconduct in the performance of his duties; provided that within sixty (60)
days after institution of any such action, suit, or proceeding a Board or
Committee member shall in writing offer the Bank the opportunity, at its own
expense, to handle and defend the same.

                                       7
<PAGE>

     4.2 Amendments. The Bank may from time to time amend or terminate, in whole
or in part, any or all of the provisions of the Plan; provided, however, no such
action shall adversely affect the existing or future rights or interests of the
Participant under this Plan without his written consent. Any such action shall
be adopted by formal action of the Board and executed by an officer, director,
or person authorized to act on behalf of the Bank.

     4.3 Nonalienation. Except insofar as applicable law may otherwise require
and with respect to the designation of a Beneficiary upon death, (i) no amount
payable to or in respect of the Participant at any time shall be subject in any
manner to alienation by such Participant or his Beneficiary by anticipation,
sale, transfer, assignment, bankruptcy, pledges, attachment, charge, or
encumbrance of any kind, any attempt to so alienate, sell transfer, assign,
pledge, attach, charge, or otherwise encumber any such amount, whether presently
or thereafter payable, shall be void; and (ii) the Employer shall in no manner
be liable for or subject to the debts, liabilities, contracts, engagements, or
torts of the Participant or his Beneficiary.

     4.4 Employment Relationship. Nothing contained in this Plan shall be deemed
to give the Participant or employee the right to be retained in the service of
the Employer, or to interfere with the right of the Employer to discharge the
Participant at any time regardless of the effect which such discharge shall have
upon him as the Participant under this Plan.

     4.5 Participation in Other Employee Benefit Plans. Nothing contained in
this Plan shall in any manner modify, impair, or affect the existing or future
rights or interests of the Participant (i) to receive any employee benefits to
which he would otherwise be entitled, or (ii) to participate in any present or
future "employee benefit plan" (as defined in Section 3(3) of the Act) of the
Employer. Any deferred compensation payable under this Plan shall not be deemed
salary or other compensation to the Participant for the purpose of computing
benefits to which he may be entitled under any "employee benefit plan" of the
Employer.

     4.6 Relationship. Notwithstanding any other provision of this Plan, this
Plan and action taken pursuant to it shall not be deemed or construed to
establish a trust or fiduciary relationship of any kind between or among the
Employer, the Participant, the Beneficiaries, or any other persons. The Plan is
intended to be unfunded for purposes of the Code and ERISA. The right of the
Participant and Beneficiaries to receive payment of deferred compensation is
strictly a contractual right to payment, and this Plan does not grant nor shall
it be deemed to grant the Participant, beneficiaries, or any other person any
interest in or right to any of the funds, property, or assets of the Employer
other than as an unsecured general creditor of the Employer.

     4.7 Construction of Plan. This Plan shall be construed and enforced
according to the laws of the State of North Carolina and, to the extent
applicable, federal law. Whenever any words are used herein in the singular or
plural form, they shall be construed as though they were also used in the other
form in all cases where they would so apply. The headings and subheadings of
this Plan have been inserted for convenience of reference and are to be ignored
in any construction of the provisions hereof.

                                       8
<PAGE>

                                   ARTICLE V
                                  SECTION 409A

     5.1 Intent. The provisions of this Plan are intended to comply with Section
409A of the Code, and the regulations thereunder (collectively, "Section 409A")
and shall be construed in a manner consistent with the requirements for avoiding
taxes or penalties under Section 409A. If any provision of this Plan would cause
the Participant to incur any additional tax or interest under Section 409A, the
Bank shall, upon the specific request of the Participant, use its reasonable
business efforts to in good faith reform such provision to comply with Code
Section 409A; provided, that to the maximum extent practicable, the original
intent and economic benefit to the Participant and the Bank of the applicable
provision shall be maintained, and the Bank shall have no obligation to make any
changes that could create any additional economic cost or loss of benefit to the
Bank. Notwithstanding the foregoing, the Bank shall have no liability with
regard to any failure to comply with Section 409A so long as it has acted in
good faith with regard to compliance therewith.

     5.2 Separation from Service. A termination of employment shall not be
deemed to have occurred for purposes of any provision of this Plan providing for
the payment of any amounts or benefits upon or following a termination of
employment unless such termination also constitutes a "Separation from Service"
within the meaning of Section 409A and, for purposes of any such provision of
this Plan, references to a "termination," "termination of employment,"
"separation from service" or like terms shall mean Separation from Service.

     5.3 Separate Payments. Each installment payment required under this Plan
shall be considered a separate payment for purposes of Section 409A.

     5.4 Delayed Distribution to Key Employees. If the Bank determines in
accordance with Sections 409A and 416(i) of the Code and the regulations
promulgated thereunder, in the Bank's sole discretion, that the Participant is a
Key Employee of the Bank on the date his employment with the Bank terminates and
that a delay in benefits provided under this Plan is necessary to comply with
Code Section 409A(A)(2)(B)(i), then the payment of any benefits provided for
under this Plan shall be delayed for a period of six (6) months following the
date of termination of the Participant's employment (the "409A Delay Period").
In such event, any benefits provided for under this Plan that would otherwise be
due and payable to the Participant during the 409A Delay Period shall be paid to
the Participant in a lump sum cash amount in the month following the end of the
409A Delay Period. For purposes of this Plan, "Key Employee" shall mean an
employee who, on an Identification Date ("Identification Date" shall mean each
December 31) is a key employee as defined in Section 416(i) of the Code without
regard to paragraph (5) thereof. If the Participant is identified as a Key
Employee on an Identification Date, then he shall be considered a Key Employee
for purposes of this Plan during the period beginning on the first April 1
following the Identification Date and ending on the following March 31.

                                       9
<PAGE>

     IN WITNESS WHEREOF, this amended and restated Plan document has been
executed as of the 12th day of December, 2008.

FOUR OAKS BANK & TRUST COMPANY

BY:  /s/ Wanda J. Blow, V.P.
     --------------------------------------------

PARTICIPANT

/s/ Ayden R. Lee, Jr.
-------------------------------------------------
Ayden R. Lee, Jr.

                                       10

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