Document:

Exhibit 10.6

STATE OF SOUTH CAROLINA                      )
                                             ) IN THE COURT OF COMMON PLEAS
COUNTY OF HORRY                              )  FIFTEENTH JUDICIAL CIRCUIT

Willis J. Duncan,  Harriette B. Duncan, and W. Jennings )  Civil Action No.
Duncan,                                                 )  2005-CP-26-4667
                                                        )
                                            Plaintiffs, )
                                                        )
                  v.                                    )
                                                        )
H. Buck  Cutts;  Paul R.  Dusenbury;  Robert P.  Hucks; )      MUTUAL RELEASE
Richard M. Lovelace, Jr.; and Howard B. Smith, III,     )
                                                        ) (Howard B. Smith, III)
                                            Defendants, )
                                                        )
CNB Corporation and The Conway                          )
National Bank,                                          )
                                                        )
                                 Nominal Defendants.    )
                                                        )
                                                        )
--------------------------------------------------------

         This Mutual Release (the  "Agreement") is entered into by and among the
below referenced Parties on this 28th day of December 2006.

                                    Recitals

         WHEREAS, on or about September 6, 2005, Willis J. Duncan,  Harriette B.
Duncan,  and W.  Jennings  Duncan  initiated  litigation  against  H. Buck Cutts
("Cutts"), Paul R. Dusenbury ("Dusenbury"),  Robert P. Hucks ("Hucks"),  Richard
M. Lovelace,  Jr.  ("Lovelace") and Howard B. Smith, III ("Smith"),  also naming
CNB  Corporation  ("CNB") and The Conway  National  Bank (the "Bank") as nominal
Defendants,  which case is  presently  pending in the Court of Common  Pleas for
Horry County, Case Number  2005-CP-26-4667  (the "Director's  Litigation" or the
"Action"); and

         WHEREAS,   Cutts,   Dusenbury,   Hucks,  Lovelace  and  Smith  filed  a
counterclaim in that case against Willis J.
Duncan and W. Jennings Duncan; and

         WHEREAS,  subsequent  to filing the  Director's  Litigation,  Willis J.
Duncan and  Harriette B. Duncan died and W.  Jennings  Duncan was  appointed the
Personal Representative of their estates; and

<PAGE>

         WHEREAS,  the  Parties  to this  Agreement  have  reached a  compromise
resolution and settlement of all issues and disputes existing with and among all
other  Parties  to this  Agreement  as  provided  in the  terms of a  Settlement
Agreement of even date (the "Settlement Agreement").

         NOW, THEREFORE, for and in consideration of the foregoing premises, and
in consideration of the mutual promises and undertakings  contained herein,  the
Parties hereto agree as follows:

                                 Specific Terms

I. Parties to Agreement.  The following  persons or entities are Parties to this
Agreement (the "Parties"):

         A. W. Jennings Duncan, his heirs, estate,  grantees,  transferees,  and
assigns;

         B. The Estate of  Harriette  B. Duncan,  her heirs,  estate,  grantees,
transferees, and assigns;

         C. The  Estate  of Willis  J.  Duncan,  his  heirs,  estate,  grantees,
transferees, and assigns;

         D. The CNB Corporation;

         E. the  Conway  National  Bank  Profit-Sharing  and  Savings  Plan (the
"401(k) Plan");

         F. The Conway National Bank;

         G. Howard B. Smith, III, his heirs, estate, grantees,  transferees, and
assigns;

         H. Any other  natural or  artificial  person on whose behalf any of the
persons identified above as Parties are legally entitled to grant a release.

II. Consideration.  The consideration exchanged pursuant to this Agreement shall
be as follows:

         A.  Payment  shall be made to Smith in the  amount  of  $95,861.17,  in
consideration  of settlement and release of all claims described in this Release
including,  without limitation, any claims for the costs and expense incurred in
the  Director's  Litigation.  This payment shall be subject to reporting on Form
1099-Misc and shall not be subject to any tax withholding.

         B.  The   dismissal,   with   prejudice,   of  the   claim(s)  and  the
counterclaim(s) asserted by the Parties in the above-referenced lawsuit.

                                       2
<PAGE>

         C. The mutual releases and other agreements,  promises,  and warranties
set forth in this Agreement.

         D. The  Parties  acknowledge  the  sufficiency  of the  above-described
consideration.

         E. The  Parties  acknowledge  and  agree  that this  Agreement  was not
intended or written by counsel to be used,  and cannot be used,  for the purpose
of avoiding  penalties under the Internal  Revenue Code that may be imposed upon
any  Party.  Each Party  shall  consult  with his or her own tax  adviser on the
proper treatment of any payments herein.

III. Resignation of Smith. As part of the settlement by and among the Parties to
this  Agreement,  Howard B.  Smith,  III  resigns  his  position on the Board of
Directors of CNB and/or the Bank, as applicable, effective December 31, 2006.

IV.      Matters Released.

         A. For purposes of this  Agreement,  the  following  definitions  shall
apply:

                  1. A  "claim"  shall  mean a claim,  demand,  right,  cause of
action, or other device through which compensation for loss may be sought.

                  2. An "existing claim" shall mean any claim,  damage, or right
to recovery  arising out of, related to or based on acts,  omissions,  or wrongs
which have taken  place as of the date of  execution  of this  Agreement  by the
Parties, whether discovered and known as of the date of this Agreement, or not.

                  3. A "future injury" shall mean

                           a)  any  injury,   loss,   or  damages  of  any  kind
whatsoever;

                           b)  that  is  discovered,   suffered,  sustained,  or
realized after the execution of this Agreement by any of the Parties; and

                           c) which  occurs as the direct or indirect  result of
acts, omissions, or wrongs which have taken place prior to the date of execution
of this Agreement by any of the Parties.

         B.       Release by Smith

                  1.  General   Release.   Smith  hereby  releases  and  forever
discharges the Estate of Willis J. Duncan, the Estate of Harriette B. Duncan, W.
Jennings  Duncan,  CNB  Corporation,  The Conway National Bank, the 401(k) Plan,
their present and former  officers,  directors,  agents,  employees,  affiliated
entities, trustees, insurers, and/or legal representatives, from and against any
and all existing claims and future injuries.

                                       3
<PAGE>

                  2. Specific Releases. Without in any way limiting the scope of
the foregoing  general  release,  it is agreed and understood that the following
matters are specifically released by Smith:

                           a. Any and all  existing  claims and future  injuries
arising in tort or contract, or any other legal or equitable theory,  including,
but not limited to, any claims or future  injuries  arising out of, or resulting
from, any acts or omissions of any of the Parties being released; and

                           b. Each and every  claim  stated  or  alleged  in the
counterclaim,  including specifically all claims for defamation,  in the Action;
and

                           c. Any and all  claims,  including  claims for future
injuries,  that might have been  alleged in the Action,  or which arise from the
same transaction(s) or occurrence(s) as the Action; and

                           d. Any and all  existing  claim and future  injuries,
demands,  causes of action,  liabilities of any kind, suits at law or equity, or
damages of any kind or nature  that may exist as of the date of this  Agreement,
whether  known or unknown,  against  any person or entity  related in any way or
connected in any way, directly or indirectly, to the actions taken by the Boards
of CNB and Bank  prior to the date of this  Agreement  prior to the date of this
Agreement; and

                           e. Any and all existing  claims and future  injuries,
demands,  causes of action,  liabilities of any kind, suits at law or equity, or
damages  of any kind or nature  that may exist as of the date of this  Agreement
for  defamation of Smith  against any person or entity  arising out of or in any
way related to Smith's  service or actions as a director,  regardless of when or
where such defamation may be alleged to have occurred.

         C. Release of Smith.

                  1. General Release. The Estate of Willis J. Duncan, the Estate
of Harriette B. Duncan, W. Jennings Duncan, CNB Corporation, The Conway National
Bank, and the 401(k) Plan hereby release and forever  discharge Howard B. Smith,
III from and against any and all existing claims and future injuries.

                  2. Specific Releases. Without in any way limiting the scope of
the foregoing  general  release,  it is agreed and understood that the following
matters are specifically released by Willis J. Duncan,  Harriette B. Duncan, the
Estate of W. Jennings Duncan, CNB Corporation,  The Conway National Bank and the
401(k) Plan:

                           a. Any and all  existing  claims and future  injuries
arising in tort or contract, or any other legal or equitable theory,  including.
but not limited to, any claims or future  injuries  arising out of, or resulting
from, any acts or omissions of any of the Parties being released; and

                                       4
<PAGE>

                           b. Each and every  claim  stated  or  alleged  in the
complaint, including specifically all claims in the Action; and

                           c. Any and all  claims,  including  claims for future
injuries,  that might have been  alleged in the Action,  or which arise from the
same transaction(s) or occurrence(s) as the Action.

V. Dismissal with Prejudice.

         A. The Estate of Willis J.  Duncan,  the Estate of Harriette B. Duncan,
and W. Jennings Duncan hereby agree to dismiss, with prejudice, the Action.

         B. Smith agrees to dismiss,  with prejudice,  his counterclaim asserted
in the Action.

VI.  Phantom Stock Plan.  Smith,  CNB and Bank  acknowledge  and agree that this
settlement  and the releases  herein do not alter or affect Smith's rights under
the terms of the Phantom  Stock Plan and Phantom Stock  Agreement  between Smith
and Bank. Smith shall retain his rights in any vested benefits as of the date of
Smith's  termination and cease further vesting of additional  benefits as of the
date of Smith's  termination  according to the terms of that Phantom  Stock Plan
and Phantom Stock  Agreement.  Such vested  benefits  shall accrue  interest and
shall be paid in accordance with the terms of the Phantom Stock Plan and Phantom
Stock Agreement between Smith and Bank. Smith, CNB and the Bank acknowledge that
Smith is fully vested in the Phantom  Stock Plan.  Smith,  CNB and the Bank also
acknowledge  that Sun  Trust  performed  a  valuation  of the CNB  stock for the
purposes of the Conway National Bank Profit-Sharing and Savings Plan and that as
of  September  30,  2006  such  valuation  was  $162.00  per share and that such
valuation  shall  be used  to  value  the CNB  stock  for the  purposes  of this
Agreement, the Phantom Stock Plan and the Phantom Stock Agreement.

VII. Warranties. The Parties give the following warranties:

         A. The Parties  warrant that they have the necessary  legal capacity to
grant all of the releases contained in this Agreement.

         B. The  Parties  warrant  that they are the true  owners of all  claims
released in this Agreement, that no other person(s) is entitled to assert any of
the claims released by the Parties in this Agreement,  and that the Parties have
not assigned,  transferred,  pledged, or hypothecated any of those claims to any
person.

VIII. Confidentiality Provision. (Intentionally omitted)

IX. Advice of Counsel.  The Parties acknowledge and agree that they have had the
advice of competent  counsel to advise and represent them in the prosecution and
compromise  settlement of their claims  against the other  Parties.  The Parties

                                       5
<PAGE>

specifically  acknowledge,  by initialing the following  spaces,  that they have
consulted counsel prior to signing this Agreement, and have no further questions
regarding the same (INITIAL HERE):

X.  Interpretation  of this  Agreement.  The Parties  acknowledge and agree that
their attorneys have been given full opportunity to review,  and where necessary
clarify, this Agreement, and that, should this Agreement require construction or
interpretation by a court, it shall not be construed or interpreted  against any
other Party as drafter.  Subject to this agreement,  the Parties agree that this
Agreement  shall be interpreted  in all other respects  according to the laws of
the State of South  Carolina.  All  terms  not  defined  herein  shall  have the
meanings ascribed to them in the Settlement Agreement.

XI. No Admissions.  The Parties  acknowledge  and agree that none of the Parties
admit  liability  or  wrongdoing  of any kind,  and that they have  tendered the
consideration  recited  above solely for the purpose of avoiding the expense and
inconvenience of protracted litigation.

XII. Use of this Agreement

         The Parties agree that this Agreement:

         1. may never be  admissible  as evidence  against  the  persons  herein
released  in any  present or future  suit,  claim or  proceeding  of any nature,
except a suit,  claim,  or  proceeding  to recover sums to be paid in accordance
with this Agreement;

         2. but may be asserted by and  introduced  as evidence  for the persons
hereby  released as an absolute and final defense and bar to any claim  released
herein in any present or future suit or proceeding of any nature.

XIII. Final and Binding  Settlement.  The Parties agree and acknowledge that the
purpose of this  Agreement  is to bring about a complete,  final,  binding,  and
permanent  settlement  of the Parties'  claims  against each other,  and promise
never to make demand upon or sue the  Parties,  or to trouble  them in any other
manner,  for or on  account  of any  claim or  future  injury  released  in this
Agreement.

XIV. Entire  Agreement.  This Agreement  contains the entire  understanding  and
agreement between the parties relating to the subject matter hereof and replaces
and  supersedes  all prior  agreements  between the parties  related to the same
subject matter.  Further,  no agreement may be effective to change,  modify,  or
terminate  this  Agreement,  in whole or in part,  unless such  agreement  is in
writing and duly signed  after the date of  execution  of this  Agreement by the
person against whom enforcement of such change, modification,  or termination is
sought.

XV.  Severability.  If any portion of this Agreement  should be, for any reason,
not enforceable, the parties agree that the remaining portion or portions should
continue to be enforceable.

                                       6
<PAGE>

XVI. Counterparts. This Agreement may be executed in counterparts signed by each
party, each of which shall be valid and enforceable against the signing party.

                    (Signatures continued on following pages)

                                       7
<PAGE>

         IN WITNESS WHEREOF, the undersigned parties have executed and delivered
this Settlement Agreement as of the 28th day of December 2006.

                              [SIGNATURES OMITTED]

                                       8Exhibit 10.7

                       CONFIDENTIALITY/NON-DISCLOSURE AND
                           NON-SOLICITATION AGREEMENT
                                (Robert P. Hucks)

         This  Agreement  is entered  into as of this 21st day of December  (the
"Effective Date") between CNB Corporation and Conway National Bank (collectively
the "Bank") and Robert P. Hucks ("Hucks").

         1. In  consideration  of the  following  the  promises  and  agreements
described in the following  subparagraphs,  the receipt and sufficiency of which
Hucks  acknowledges,   the  parties  agree  to  the  terms  set  forth  in  this
Confidentiality/Non-Disclosure  and Non-Solicitation Agreement ("Confidentiality
Agreement" or the "Agreement").

                  a.  The  consideration  for  this  Confidentiality   Agreement
includes the  promises,  covenants  and cash  payments by the Bank to Hucks,  as
described in detail in the Settlement  Agreement entered by and between the Bank
and  Hucks,  among  others,  of  even  date,  the  terms  of  which  are  hereby
incorporated by reference (the "Settlement Agreement");

                  b.  Each  party  waives  any and all  rights  to  enforce  any
non-solicitation,   non-disclosure,   or  confidentiality  covenants  previously
executed by the parties  including  but not limited to (i)  Paragraph 9.2 of the
Dusenbury  and Hucks  Employment  Agreements;  (ii) any  Executive  Supplemental
Income Agreement executed by CNB and/or the Bank with Hucks,  Dusenbury or Smith
(collectively,  the "ESI  Agreements");  and (iii)  Paragraph 7.2 of the Phantom
Stock  Agreement  entered into between  Dusenbury and the Bank dated December 1,
1999, (the "Dusenbury Phantom Stock Agreement"), and the Phantom Stock Agreement
entered  into  between  Hucks and the Bank dated  December 1,  1999,(the  "Hucks
Phantom Stock Agreement").

<PAGE>

         2. Non-disclosure of Information.

                  a. The success of CNB  Corporation and Conway National Bank in
the banking industry depends upon the relationship which each has developed with
its customers, sources of referral and business connections. The Bank is able to
compete  effectively  in the  banking  industry  because  it has  developed  and
maintains a body of confidential and proprietary information. Hucks acknowledges
that in and as a result of his employment by the Bank, he obtained access to and
used confidential information of a special and unique nature and value.

                  b.  CNB  Corporation  and  the  Bank  acknowledge  that  Hucks
possesses  experience  and knowledge  which he has developed as a result of many
years working in the banking industry, and that Hucks is entitled to utilize his
experience  and  knowledge  in  earning  a  living  in the  banking  profession,
including working for a bank that competes with Conway National Bank.

                  c.  Hucks  further  acknowledges  that  in the  course  of his
employment,  he has become  privy to certain  "trade  secrets" as defined by the
South Carolina Trade Secrets Act, S.C. Code Ann. ss. 39-8-10,  et seq., that are
treated as confidential by CNB and the Conway National Bank (a "Trade Secret").

                  d.  Hucks  further  acknowledges  that  in the  course  of his
employment,   he  has  become  privy  to  certain  "confidential   information,"
"proprietary  information"  and  "private  information"  that would  qualify for
protection  under federal or state law and that are treated as  confidential  by
CNB and the Conway  National Bank (together with Trade Secrets being referred to
as "Confidential Information").

                                       2
<PAGE>

                  e.  As  a   material   inducement   to  the  Bank  to  provide
consideration  described  above,  Hucks  covenants and agrees that, for a period
ending  December 31, 2008, he shall  maintain and not disclose all  Confidential
Information  and Trade Secrets which was maintained and treated as  confidential
by the Bank. In the discharge of this obligation for the aforesaid  term,  Hucks
shall not disclose any such  Confidential  Information or Trade Secret described
above to anyone not employed by the Bank.

                  f. In  addition,  and  without  limitation,  upon  any  remedy
provided herein,  Hucks agrees that the  Confidential  Information is considered
"trade secrets" under the South Carolina Trade Secrets Act, and that the Company
is entitled to avail itself of any and all remedies provided for by that Act for
any misappropriation, or any threatened misappropriation, of such information.

                  g.   Hucks   acknowledges   that   he  is   subject   to   the
confidentiality   requirements  regarding  non-public  customer  data  which  he
obtained  during  his  employment  under  applicable  state  or  federal  law or
regulations  applicable to the Bank, such as the Bank's Privacy Policy in effect
as of the Effective  Date,  and that nothing in this  Confidentiality  Agreement
abrogates, diminishes or enlarges those obligations.

         3. Covenants  Against  Solicitation.  In further  consideration  of the
promises and commitments of the Bank as described above,  Hucks agrees that, for
a period of two years from the Effective Date of this Confidentiality Agreement,
he will not:

                                       3
<PAGE>

                  a.  personally  solicit or  recruit  persons  employed  on the
Effective Date by Conway  National  Bank, for employment  with any other banking
institution doing business in Horry or Georgetown Counties:

                  b. provide names of persons  employed on the Effective Date by
Conway  National Bank to any employee or agent of any other banking  institution
doing business in Horry or Georgetown Counties,  with which he may be affiliated
or to any recruiters,  "headhunters," or other third-parties, for the purpose of
soliciting or recruiting  such person(s) for  employment  with any other banking
institution doing business in Horry or Georgetown Counties;

                  c.  Personally  participate in  discussions or  communications
with  any  person  employed  on the  Effective  Date by  Conway  National  Bank,
concerning employment with any other banking institution doing business in Horry
or Georgetown Counties with which he may be affiliated.

                  d. The following are examples of activities  that shall not be
considered violations of this provision:

                           (1)  Communicating  with employees of Conway National
Bank about matters other than
employment with any bank or banking headhunter.

                           (2)  Communicating  with a  person  not  employed  by
Conway National Bank as of the
Effective Date of this Agreement concerning employment with any bank.

                  e.  The  mere  employment  of a former  Conway  National  Bank
employee by a banking  institution that also employs Hucks does not constitute a
violation of this provision.

                                       4
<PAGE>

         4. Reasonableness of Restrictions.

                  a. Hucks has carefully  read and  considered the provisions of
Paragraphs 2 and 3, and, having done so, agrees that the  restrictions set forth
in  those  Paragraphs,  including,  but  not  limited  to  the  time  period  of
restriction  are fair and reasonable and are reasonably  required for protection
of  the  legitimate   interests  of  the  Bank,   their   officers,   directors,
shareholders,  and other employees.  Further, Hucks acknowledges and agrees that
the restrictions  imposed by this Agreement will not preclude or unduly restrict
him from other gainful  employment.  Hucks recognizes that the restrictions have
been  carefully  tailored  so as to protect  the Bank's  interests  in Horry and
Georgetown  Counties,  the area where it does substantially all of its business,
and are not broader than required.

                  b. In the event that any  provision of Paragraphs 2 or 3 shall
be held to be invalid or unenforceable,  the remaining  provisions thereof shall
nevertheless  continue  to be valid and  enforceable  as though  the  invalid or
unenforceable provision(s) had not been included therein.

                  c. In the  event  that  any  provision  of  Paragraphs  2 or 3
relating  to the  time  period  and/or  related  aspects  is found by a court of
competent  jurisdiction to exceed the maximum  restrictiveness  such court deems
reasonable  and  enforceable,  then it is the  express  desire and intent of the
parties that such provision not be rendered invalid thereby, but rather that the
duration,  scope,  or nature of the restriction be deemed reduced or modified to
the extent necessary to render such provision reasonable, valid and enforceable.
The time period and/or related aspects deemed  reasonable and enforceable by the
court shall then become,  and  thereafter  be, the maximum  restriction  in such
regard, and the provision, as reformed, shall remain valid and enforceable.  The

                                       5
<PAGE>

parties  acknowledge  that  this  subparagraph  is  contractual  in  nature  and
expressly  grant a court of competent  jurisdiction  the authority to effectuate
this contractual provision.

         5.  Enforcement.  Hucks  expressly  understands  and agrees that in the
event Hucks is determined by a court of competent  jurisdiction to have violated
any of the terms of this Agreement, the Bank shall be entitled to:

                  a. Monetary damages resulting from such violation;

                  b. Immediate  injunctive  relief enjoining Hucks from engaging
in any further conduct in violation of this Agreement;

                  c. Reasonable  attorneys fees and costs necessitated by Hucks'
breach of this Agreement; and

                  d. Any other appropriate legal or equitable relief,  including
specifically  any relief  available to the Bank under S.C. Code  ss.39-8-10,  et
seq.

                  If a court of competent jurisdiction determines that Hucks has
not  violated  his duties  hereunder,  Hucks  shall be  entitled  to an award of
attorneys fees and costs.

         6.  Choice of Law and Venue.  This  Agreement  shall be governed in all
respects by the laws of the State of South Carolina,  and Hucks hereby expressly
consents to the jurisdiction of any state of federal court located in Charleston
County,  South  Carolina for the  resolution of all disputes  arising under this
Confidentiality   Agreement,   including   disputes   about  the   meaning   and
enforceability  of any of the  terms  and  conditions  of  this  Confidentiality
Agreement.

                                       6
<PAGE>

         7.  Merger  Clause.  This  document,  incorporating  the  terms  of the
Settlement  Agreement  entered  this day by the  parties,  represents  the final
agreement  of the parties and no other  document  nor any  negotiation  or prior
draft of this agreement shall have any force or effect.

         8. This Agreement shall be binding upon, and shall inure to the benefit
of,  the  Bank and  Hucks,  and  their  respective  heirs,  personal  and  legal
representatives,  successors,  assigns,  officers,  directors,  shareholders  or
employees.

         Hucks acknowledges that he/she has read the terms of this Agreement and
understands  the duties and  obligations  which it imposes upon  him/her.  Hucks
accepts   the  terms  of  this   Agreement   and   further   agrees  to  conduct
himself/herself in accordance with the terms of this Agreement at all times.

    (Remainder of Page Intentionally left Blank. Signature pages to Follow.)

                                       7
<PAGE>

         IN WITNESS WHEREOF, the undersigned parties have executed and delivered
this Settlement Agreement as of the 28th day of December 2006.

                              [SIGNATURES OMITTED]

                                       8

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