Document:

EMPLOYMENT AGREEMENT DATED OCTOBER 1, 2003 BETWEEN THE COMPANY AND JENNIFER CUE

 EXHIBIT 10.1 
  
 EMPLOYMENT AGREEMENT 
  

THIS AGREEMENT is made as of the 1st day of October, 2003. 
  
 BETWEEN: 
  
 JONES SODA CO., a Washington corporation, located at 234 9th Avenue North,
Seattle, Washington 98109 
  
 (the “Employer”)

  
 AND: 
  
 JENNIFER CUE of Seattle, Washington 
  
 (the “Employee”) 
  
 WHEREAS: 
  

	A.	The Employee is one of the key executives of the Employer and has experience in the area of business in which the Employer is involved. 

  

	B.	The Employee is currently employed by the Employer. The Employer and the Employee have agreed to enter into this Agreement which shall govern the employment relationship of the
parties from this date forth. This Agreement shall replace any previous agreements of employment between the Employer and the Employee (whether written or oral) in their entirety and any such previous agreements shall be terminated and shall be of
no further effect from this date forth. 

  

	C.	The Employer has agreed to continue the employment of the Employee as the Chief Financial Officer. The Employer hereby agrees that Employee has been performing the duties of Chief
Operating Officer and thus, Employee also shall have the title of Chief Operating Officer. The Employee has agreed to accept such continued employment with the Employer in accordance with the terms of this Employment Agreement.

  
 NOW, THEREFORE, in consideration of the mutual covenants and
representations herein contained, the parties hereto agree as follows: 
  

	1.00	Employment. 

  

	 	1.01	The Employer shall employ the Employee in the position of Chief Financial Officer and Chief Operating Officer under the terms of this Agreement commencing on October 1, 2003, and
continuing for a period of time specified in Paragraph 3 herein, subject to the terms contained in said Paragraph. The terms of this Agreement shall supercede any prior arrangement or understanding between the parties regarding the Employee’s
employment by the Employer. 

  

	2.00	Duties. 

  

	 	2.01	During Employee’s employment, Employee shall serve as Chief Financial Officer and Chief Operating Officer of Employer. The Employee shall have a mandatory direct report to the
Employer’s Board of Directors and Chief Executive Officer, and her powers, authority and employment duties shall be subject to the direction and authority of the Board of Directors and Chief Executive Officer. It is contemplated that, in
connection with each annual meeting of shareholders (or action by written consent in lieu thereof) of the Employer while the Employee remains employed under this Agreement, the Board shall nominate the Employee for election as a member of the Board.

	 	2.02	The Employee shall, at all times, excluding any periods of disability, vacation, statutory holidays or sick leave to which the Employee is entitled, devote such of her time,
attention, knowledge and skills as is reasonably required to diligently, competently, and effectively perform her duties and, without limiting the generality of the foregoing, carry out her obligations in a manner consistent with the ethical and
legal performance of such duties. 

  

	 	2.03	The Employer shall provide the means and resources to enable the Employee to meet her duties and, without limiting the generality of the foregoing, carry out her obligations.

  

	 	2.04	Excluding any periods of disability, vacation, statutory holidays or sick leave to which the Employee is entitled, the Employee shall attend to her duties within, but not limited
to, the normal business hours of the Employer, being Monday to Friday inclusive during each week and during such additional hours and other times as may be reasonably required as mutually agreed upon or reasonably necessary for the Employee to fully
and effectively carry out her duties. 

  

	3.00	Term. 

  

	 	3.01	This Agreement is for a term of THREE (3) YEARS, commencing October 1, 2003, and concluding on September 30, 2006 and thereafter this Agreement shall remain in effect from
month-to-month until new mutually agreeable terms have been negotiated between the Employer and the Employee or until this Agreement has been terminated in accordance with the provisions of this section. 

  

	 	3.02	The Employee’s employment under this Agreement may be terminated as follows: 

  

	 	(a)	at the Employee’s option, if there is a breach or default of any term of this Agreement by the Employer, and if such breach or default has not been remedied or is not being
remedied to the satisfaction of the Employee acting reasonably, within fourteen (14) days after written notice, including a detailed description of the breach or default, has been delivered by the Employee to the Employer; or

  

	 	(b)	at the Employee’s option, at any time after the expiration of fourteen (14) days of the date on which there is a Change in Control of the Employer or if there is a change in
the Employer’s management or reporting structure; 

  

	 	(i)	For the purposes of this Agreement, a Change in Control shall be deemed to occur when: 

  

	 	a.	a majority of the directors elected at any annual or special general meeting of shareholders of the Employer are not individuals nominated by the Employer’s then incumbent
Board of Directors. 

  

	 	(c)	by the Employee, upon giving thirty (30) days notice of resignation; 

  

	 	(d)	at any time by the Employer, without notice and without payment (except Employee’s base salary and accrued, unused vacation through the date of termination) in lieu of notice,
for cause which is limited to: 

  

	 	(i)	fraud or dishonesty materially injurious to the Employer or any act or omission in willful disregard of the interests of the Employer that in the opinion of a majority of the
outside Directors, substantially impairs the Employer’s business; 

  

	 	(ii)	conviction or a plea of guilty or no-contest by the Employee to a felony; or 

  

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	 	(iii)	the material breach or default of any term of this Agreement by the Employee if such breach or default has not been remedied or is not being remedied to the satisfaction of
three-fourths of the outside members of Employer’s Board of Directors (following a vote of all members) acting reasonably and within fourteen (14) days after written notice, including a detailed description of the breach or default, has been
delivered by the Employer to the Employee; or 

  

	 	(e)	by the Employer without cause, upon giving thirty (30) days notice of termination; or 

  

	 	(f)	the Employee becoming disabled for a period exceeding 180 consecutive days or 180 days calculated on a cumulative basis over any two year period during the term of this Agreement;
or 

  

	 	(g)	the death of the Employee. 

  

	 	3.03	If the Employee’s employment terminates pursuant to subparagraph 3.02(a), (b) or (e), then in recognition of the Employee’s significant financial and other contributions
to the Employer since the commencement of her employment, the Employee shall receive from the Employer: 

  

	 	(a)	a payment equal to the number of months of her annual salary of $270,000; 

  

	 	(b)	her stock options in the amount mutually agreed to pursuant to subparagraph 4.02 herein for the year of termination. The Employee also shall have the right to exercise any unused
stock options pursuant to the Stock Option Agreement for the duration of the term as set forth in the Stock Option Agreement. In the event of an acquisition or change of control of Employer, all of Employee’s stock options will vest immediately
upon such acquisition or change of control; and 

  

	 	(c)	her performance bonus pursuant to subparagraph 4.03 herein. 

  

	 	3.04	If the Employee resigns pursuant to subparagraph 3.02(c), she shall (a) receive her stock options in accordance with subparagraph 3.03(b). 

  

	 	3.05	In addition to any amounts or benefits payable under paragraph 3.0 et seq., Employee shall be entitled to any payments or benefits provided under the terms of any plan,
policy or programs of the Employer or as otherwise required by applicable law. 

  

	4.0	Remuneration and Performance Bonus. 

  

	 	4.01	The Employer shall pay to the Employee a minimum annual salary of Ninety Thousand Dollars ($90,000.00 U.S.) in bi-weekly installments. 

  

	 	4.02	Prior to the first day of each year of employment under this Agreement, the Employer and Employee shall negotiate a salary adjustment, stock option, and bonus provision, which may
increase but shall not reduce Employee’s remuneration under this Agreement. Employee shall receive annual stock options equal to a minimum of four (4) times the number of options granted to any one of the Employer’s outside directors. If
the Board of Directors proposes to grant options in excess of 80,000 per year to any person or entity, the non-effected Board members must vote unanimously to support such grant. 

  

	 	4.03	 If Employer has met its quarterly performance objectives pursuant to an agreed schedule set by Employer and the Board of Directors and Employee is a full time
employee of Employer at the expiration of each quarter in 2003, and is in full compliance of all of her duties and obligations to Employer, Employee will be eligible to receive a lump sum payment of up to 100% of Employee’s annual base salary,
minus all applicable withholdings and taxes (“performance bonus”). One quarter of this performance bonus shall be paid one month after the close of each quarter in 2003. 

  

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If, prior to the expiration of any quarter, Employer terminates Employee’s employment (1) without cause and (2) when Employee is performing her job
duties satisfactorily, Employee shall receive 100% of the performance bonus, provided that Employer has met its quarterly performance goals for the quarter previous to the one during which termination of employment occurred. If prior to December 31,
2003, there is a change of control (as that term is defined in this Agreement), and Employer has met its quarterly performance goals, Employee shall receive 100% of the performance bonus in addition to all the other rights and benefits provided
under this Agreement. 

  

	 	4.04	The Employer shall pay for and provide the Employee with the following benefit plans: 

  

	 	(a)	Full medical, dental, and vision coverage as accorded any other senior executive employee; 

  

	 	(b)	Short-term disability insurance policy and long-term disability insurance policy; and 

  

	 	(c)	All other retirement, savings, incentive, and/or benefit plans and programs granted from time to time to any other senior executive. 

  

	 	4.05	Employee hereby authorizes the Employer to deduct from the Employee’s salary all deductions required by law to be made by the Employer. 

  

	 	4.06	Employer shall furnish the Employee with an automobile, of a price and class similar to that currently used by the Employee, to be used by the Employee in the performance of her
duties under this Agreement, and the Employer shall pay Five Hundred Dollars ($500.00 U.S.) per month for the leasing, fuel and maintenance expenses of the automobile. Employer agrees that Employee shall have the option to purchase the automobile at
the expiration of the current leasehold term. 

  

	 	4.07	Employer shall provide, at no expense to the Employee, a term life insurance policy in the amount of $1.0 Million (U.S. Dollars) on the life of the Employee and payable to the
Employee’s designated beneficiary. 

  

	 	4.08	All stock options which are set for expiration in 2003 will be extended to December 31, 2005 by Employer to Employee at the same strike price as outlined in Schedule “A”.

  

	 	4.09	If it is determined that a payment to the Employee pursuant to this Agreement or any other payment or benefit from the Employer, any affiliate or shareholder of the Employer or any
other person would be subject to the excise tax imposed by Section 4999 of the Tax Code or any similar tax payable under any United States federal, state, local or other law, then the Employee shall receive a tax gross-up payment with respect to all
such excise taxes and similar taxes. 

  

	5.0	Holidays. 

  

	 	5.01	The Employee shall be entitled to payment of statutory holidays and a four (4) week annual vacation. 

  

	6.0	Expenses. 

  

	 	6.01	The Employer shall provide compensation for expenses actually and properly incurred by the Employee in connection with her duties under this Agreement including, but not limited to:

  

	 	(a)	reimbursement for all actual travel expenses within two (2) weeks of submitting an expense claim by the Employee; and 

  

	 	(b)	any other costs of expenses to the Employee, as from time to time may be mutually agreed upon. 

  

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	7.0	Insurance/Indemnification. 

  

	 	7.01	Insurance. The Employer shall use reasonable efforts to provide the Employee with director’s and officer’s liability insurance appropriate to the nature of her
responsibilities under this Agreement, provided that the Employer is able to obtain such insurance coverage for all of its directors and officers at a reasonable cost, as determined by the Board of Directors in its sole discretion.

  

	 	7.02	Indemnification. The Employer shall defend, indemnify and hold Employee harmless from any and all liabilities, obligations, claims or expenses which arise in connection with
or as a result of Employee’s service as an officer or employee of Employer to the fullest extent allowed by law. 

  

	8.0	Governing Law. 

  

	 	8.01	This Agreement shall be construed in accordance with and governed by the laws of the State of Washington and any action shall be brought in King County, Washington.

  

	 	8.02	Any legal action or other legal proceeding relating to this Agreement, or the enforcement of any provision of this Agreement, may be brought or otherwise commenced in a state or
federal court located in the County of King in the State of Washington. Each party to this Agreement (a) expressly and irrevocably consents and submits to the jurisdiction of each state and federal court located in the County of King in the State of
Washington (and all appellate courts located in the State of Washington) in connection with any such legal proceeding; (b) agrees that each state and federal court located in the County of King in the State of Washington shall be deemed to be a
convenient forum; and (c) agrees not to assert (by way of motion, as a defense, or otherwise), in any such legal proceeding commenced in any state or federal court located in the County of King in the State of Washington, any claim that such party
is not subject personally to the jurisdiction of such court, that such legal proceeding has been brought in an inconvenient forum, that the venue of such proceeding is improper, or that this Agreement or the subject matter of this Agreement may not
be enforced in or by such court. 

  

	9.0	Entire Agreement. 

  

	 	9.01	This Agreement, the Stock Option Agreement, and Quarterly Performance Objectives Agreement, referenced in subparagraph 4.03 herein, between Employer and Employee constitute the
entire Agreement between the parties and there are no written or oral inducements, promises or agreements except as contained in these Agreements. 

  

	 	9.02	Any notice required to be given under this Agreement is deemed to have been sufficiently given if mailed by prepaid registered mail or delivered at the address of the other party
set out above, or at such other address as the other party may from time to time direct, in writing, and that notice shall be deemed to have been received, if mailed seventy-two (72) hours after the time of mailing, and if delivered, upon the date
delivered. If normal mail service is interrupted by strike, slowdown, force majeure or other cause, a notice sent by the impaired means of communication will not be deemed to be received until actually received, and the party sending the notice
shall utilize any other services which have not been interrupted or shall deliver such notice in order to ensure prompt receipt thereof. 

  

	10.0	Interpretation. 

  

	 	10.01	The paragraph headings appearing in this Agreement have been inserted as a matter of convenience and for reference only and in no way define, limit or enlarge the scope of meaning
of this Agreement. 

  

	 	10.02	Wherever the feminine is used in this Agreement, the same shall be deemed to include the masculine where the context so requires. 

  

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	11.0	Inurement. 

  

	 	11.01	This Agreement shall enure to the benefit of and be binding upon the parties and their respective heirs, executors, successors and assigns. 

  

	12.0	Counterparts. 

  

	 	12.1	This Agreement may be executed in several counterparts, each of which constitutes an original, and all of which, when taken together, shall constitute one Agreement.

  

	13.0	Further Assurances. 

  

	 	13.1	Each party hereto shall execute and/or cause to be delivered to the other party hereto, such instruments and other documents and shall take such other actions as such other party
may reasonably request to effectuate the intent and purposes of this Agreement. 

  

	14.0	Attorney’s Fees and Expenses. 

  

	 	14.1	If any legal action or other legal proceeding relating to the enforcement of any provision of this Agreement is brought against either party hereto, the prevailing party shall be
entitled to recover reasonable attorney’s fees, costs and disbursements in addition to any other relief to which the prevailing party may be entitled. 

  

	15.0	Waiver. 

  

	 	15.1	No failure on the part of either party to exercise any power, right, privilege or remedy under this Agreement, and no delay on the part of either party in exercising any power,
right, privilege or remedy under this Agreement, shall act as a waiver of such power, right, privilege or remedy; and no single or partial exercise of any such power, right, privilege or remedy shall preclude any other or further exercise thereof,
or of any other power, right, privilege or remedy. Neither party shall be deemed to have waived any claim arising out of this Agreement, or any power, right, privilege or remedy under this Agreement, unless the waiver of such claim, power, right,
privilege or remedy is expressly set forth in a written instrument duly executed and delivered by the party to be charged; and any such waiver shall not be applicable or have any effect except in the specific instance in which it is given.

  

	16.0	Amendment. 

  

	 	16.1	This Agreement may not be amended, modified, altered or supplemented other than by means of a written instrument duly executed and delivered by Employee and Employer.

  
 IN WITNESS WHEREOF, the parties hereto have set their hands this
day and year first above written. 
  

	 EMPLOYER:
	 	 EMPLOYEE:

		
	 JONES SODA CO.
	 	 
			
	 By:
	 	 /s/ Michael M. Fleiming

	 	 /s/ Jennifer Cue

	 	 	Its:	 	 Director and Chairman of the
	 	 JENNIFER CUE

	 	 	 	 	 Compensation Committee
	 	 

  

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 EXHIBIT 10.1 
  
 SCHEDULE “A” 
  

	 Name

	 	 No. of Options

	 	 Strike Price

	 	 Expiry Date

	548918 B.C. Ltd.*	 	20,000	 	Cdn $0.85	 	 January 19, 2003 (to be revised to 12/31/05)

				
	548918 B.C. Ltd.*	 	100,000	 	Cdn $1.15	 	 June 1, 2003 (to be revised to 12/31/05)

				
	Jennifer Cue	 	30,000	 	Cdn $1.00	 	 February 13, 2003 (to be revised to 12/31/05)

				
	Jennifer Cue	 	105,000	 	Cdn $1.00	 	 February 23, 2003 (to be revised to 12/31/05)

				
	Jennifer Cue	 	220,000	 	Cdn $1.00	 	 July 24, 2003 (to be revised to 12/31/05)

				
	Jennifer Cue	 	80,000	 	Cdn $0.75	 	 February 8, 2004

				
	Jennifer Cue	 	20,000	 	Cdn $0.80	 	 February 9, 2004

				
	Jennifer Cue	 	20,000	 	Cdn $1.00	 	 July 23, 2005

				
	Jennifer Cue	 	60,000	 	Cdn $0.90	 	 May 27, 2006

				
	Jennifer Cue	 	100,000	 	US$ 0.50	 	 April 11, 2007

	*	Beneficial Owner-100% owned by Jennifer Cue 

  

 - 7 -Supplemental Executive Retirement Plan for William M.Griffith, Jr.

  
 Exhibit 10.1

  
 EXECUTIVE SUPPLEMENTAL RETIREMENT PLAN 

 
 EXECUTIVE AGREEMENT 
  
 THIS AGREEMENT is made and entered into this 14 day of November, 2002,
by and between Alamance National Bank, a bank organized and existing under the laws of the State of North Carolina (hereinafter referred to as the “Bank”), and William M. Griffith, Jr., 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 Alamance National Bank
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 Security Act of 1974, as amended (“ERISA”). The Executive is fully
advised of the Bank’s financial status and has had substantial input in the design and operation of this benefit plan; and 
  
 NOW THEREFORE, in consideration of services the Executive has performed in the past and those to be performed in the future, and based upon the
mutual promises and covenants herein contained, the Bank and the Executive agree as follows: 
  

	I.	DEFINITIONS 

  

	 	A.	Effective Date: 

  
 The Effective Date of the Executive Plan shall be September 6, 2002. 
  

	 	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.	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 Normal Retirement Age (Subparagraph I [J]). 
  

	 	E.	Pre-Retirement Account: 

  
 A Pre-Retirement Account shall be established as a liability reserve account on the books of the Bank for the benefit of the Executive. Prior to the
Executive’s Termination of Service or the Executive’s retirement, whichever event shall first occur, such liability reserve account shall be increased or decreased each Plan Year, until the aforestated event occurs, by the Index Retirement
Benefit (Subparagraph I [F]). Said Pre-Retirement Account shall be credited interest at a rate of eight percent (8%) each Plan Year until the Pre-Retirement Account is entirely paid to the Executive, or the Executive’s beneficiary(ies), and
said Pre-Retirement Account balance is zero. Notwithstanding anything hereinabove to the contrary, if the Executive shall suffer a Termination of Service for reasons other than disability, prior to the Early Retirement Date, it shall be in the sole
discretion of the Board whether to continue to increase or decrease such liability reserve account, and/or credit interest to said account as set forth hereinabove, subsequent to said Termination of Service. 
  

	 	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 Cost of Funds Expense (Subparagraph I [H]) for that Plan Year. 
  

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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:
	  	 Jefferson Pilot Life Insurance Company

	 Policy Form:
	  	Flexible Premium Adjustable Life
	 Policy Name:
	  	ESP100
	 Insured’s Age and Sex:
	  	53, Male
	 Riders:
	  	None
	 Ratings:
	  	None
	 Option:
	  	Level
	 Face Amount:
	  	$659,000
	 Premiums Paid:
	  	$270,610
	 Number of Premium Payments:
	  	Single
	 Assumed Purchase Date:
	  	September 6, 2002
		
	 Insurance Company:
	  	Massachusetts Mutual Life Insurance Company
	 Policy Form:
	  	Flexible Premium Adjustable Life
	 Policy Name:
	  	SL11B
	 Insured’s Age and Sex:
	  	53, Male
	 Riders:
	  	None
	 Ratings:
	  	None
	 Option:
	  	Level
	 Face Amount:
	  	$627,816
	 Premiums Paid:
	  	$270,610
	 Number of Premium Payments:
	  	Single
	 Assumed Purchase Date:
	  	September 6, 2002

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

  

 3 

 
always have no greater interest in the benefits under this Executive Plan than that of an unsecured creditor of the Bank. 
  

	 	H.	Cost of Funds Expense: 

  
 The Cost of Funds Expense 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 Cost of Funds Expense, and
multiplying that sum by the greater of either: (i) Average After-Tax Cost of Funds (Subparagraph I [K]); or (ii) Average after-tax. yield of a one-year Treasury Bill. 
  

	 	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.	Average After-Tax Cost of Funds: 

  
 Average After-Tax Cost of Funds means, at any particular time, a ratio, the numerator of which is the total annualized interest expense as set forth on
Schedule RI-Income Statement of the Bank’s most recently filed Consolidated Report of Condition and Income (the “Call Report”) and the denominator of which is an amount equal to: (i) the amount of deposits in domestic offices (sum of
total of columns A and C from Schedule RC-E of the Call Report), plus (ii) the amount of federal funds purchased and securities sold under agreements to repurchase, as set forth on Schedule RC-Balance Sheet of the Call Report. 
  

	 	L.	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). 
  

 4 

	II.	INDEX BENEFITS 

  

	 	A.	Retirement Benefits: 

  
 Subject to Subparagraph II (D) hereinafter, an Executive who remains in the employ of the Bank until the Normal Retirement Age (Subparagraph I [J]) shall
be entitled to receive the balance in the Pre-Retirement Account in one hundred eighty (180) equal monthly installments commencing thirty (30) days following the Executive’s retirement. In addition to these payments and commencing subsequent
thereto, and only after the Pre-Retirement Account has been paid in full, the Index Retirement Benefit (Subparagraph I [F]) for each Plan Year subsequent to the year that the Executive begins receiving Index Retirement Benefits hereunder, and
including the remaining portion of the Plan Year of the year that the Executive begins receiving Index Retirement Benefits hereunder, shall be paid to the Executive until the Executive’s death. 
  

	 	B.	Termination of Service: 

  
 Subject to Subparagraph II (D), should an Executive suffer a Termination of Service the Executive shall be entitled to receive twenty percent (20%) times
the number of full years of employment with the Bank from the date of first employment with the Bank to a maximum of eighty percent (80%), times the balance in the Pre-Retirement Account payable to the Executive in one hundred eighty (180) equal
monthly installments commencing (30) days following the Executive’s Normal Retirement Age (Subparagraph I [J]). In addition to these payments and commencing subsequent thereto, and only after the Pre-Retirement Account has been paid in full,
twenty percent (20%) times the number of full years of employment with the Bank from the date of first employment with the Bank to a maximum of eighty percent (80%), times the Index Retirement Benefit for each Plan Year subsequent to the year that
the Executive begins receiving Index Retirement Benefits hereunder, and including the remaining portion of the Plan following the year that the Executive begins receiving Index retirement Benefits hereunder, shall be paid to the Executive until the
Executive’s death. 
  

	 	C.	Death: 

  
 Should the Executive die there is a balance in the Executive’s Pre-Retirement Account (Subparagraph I [E]), said unpaid balance of the
Executive’s Pre-Retirement Account shall be paid in a lump sum to the individual or individuals the Executive may have designated in writing and filed with the Bank. In the absence of any effective beneficiary designation, the unpaid balance
shall be paid as set forth herein to the duly qualified executor or administrator of the Executive’s estate. Said 

  

 5 

 
payment due hereunder shall be made the first day of the second month following the decease of the Executive. 
  

	 	D.	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. 
  

	 	E.	Death Benefit: 

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

	 	F.	Early Retirement: 

  
 Subject to Subparagraph II (D), should the Executive elect Early Retirement or be discharged without cause by the Bank subsequent to the Early Retirement
Date (Subparagraph I [L]), the Executive shall be entitled to receive the balance in the Pre-Retirement Account payable in one hundred eighty (180) equal monthly installments commencing thirty (30) days after the Early Retirement Date [Subparagraph
I (L)]. In addition to these payments and commencing subsequent thereto, and only after the Pre-Retirement Account has been paid in full, the Index Retirement Benefit for each Plan Year subsequent to the year that the Executive begins receiving
Index Retirement Benefits hereunder, and including the remaining portion of the Plan Year following the year that the Executive begins receiving Index retirement Benefits hereunder, shall be paid to the Executive until the Executive’s death.

  

	 	G.	Disability Benefit: 

  
 In the event the Executive becomes disabled prior to Termination of Service, and the Executive’s employment is terminated because of such disability,
the Executive shall immediately begin receiving the benefits in Subparagraph IT (A) above. Such benefit shall begin without regard to the Executive’s Normal Retirement Age and the Executive shall be one hundred percent (100%) vested in the
entire benefit amount. If there is a dispute regarding whether the Executive is disabled, such dispute shall be 

  

 6 

 
resolved by a physician selected by the Bank and such resolution shall be binding upon all parties to 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 [D]), then the Executive
shall receive one hundred percent (100%) of the benefits promised in this Executive Plan (Subparagraph II[A]) thirty (30) days following the later of either: (i) Termination of Service; or (ii) the Executive attaining age sixty (60), as if the
Executive had been continuously employed by the Bank until the Executive’s Normal Retirement Age. The Executive will also remain eligible for all promised death benefits in this Executive Plan. In addition, no sale, merger, or consolidation of
the Bank shall take place unless the new or surviving entity expressly acknowledges the obligations under this Executive Plan and agrees to abide by its terms. 
  

	V.	MISCELLANEOUS 

  

	 	A.	Alienability and Assignment Prohibition: 

  
 Neither the Executive, nor the Executive’s surviving spouse, nor any other beneficiary(ies) under this Executive Plan shall have any power or right
to transfer, assign, anticipate, hypothecate, mortgage, commute, modify or 

  

 7 

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

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

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

	 	C.	Amendment or Revocation: 

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

	 	D.	Gender: 

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

	 	E.	Effect on Other Bank Benefit Plans: 

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

	 	F.	Headings: 

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

  

 8 

	 	G.	Applicable Law: 

  
 The laws of the State of North Carolina shall govern the validity and interpretation of this Agreement. 
  

	 	H.	12 U.S.C. § 1828(k): 

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

	 	I.	Partial Invalidity: 

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

  

	 	J.	Employment: 

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

	VI.	ERISA PROVISION 

  

	 	A.	Named Fiduciary and Plan Administrator: 

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

	 	B.	Claims Procedure and Arbitration: 

  
 In the event a dispute arises over benefits under this Executive Plan and benefits are not paid to the Executive (or to the Executive’s 

  

 9 

 
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. 
  
 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 

  

 10 

 
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. 
  

	 	 	 	 	 ALAMANCE NATIONAL BANK
 Graham, North Carolina
	 	 
					
	 /s/    Jatana M. Bremer
	 	 	 	By:	 	 /s/    William E. Swing, Jr.
	 	 SVP

	
	 	 	 	 	

	 Witness
	 	 	 	 	 	Title
				
	 /s/    Jatana M. Bremer
	 	 	 	 /s/    William M. Griffith, Jr.
	 	 
	
	 	 	

	 Witness
	 	 	 	 William M. Griffith, Jr.
	 	 

  

 11

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