SEC Contract Filing

Filing Date: 2017-01-05

Document Content:
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<TYPE>EX-10.5
<SEQUENCE>6
<FILENAME>pbnc_ex105.htm
<DESCRIPTION>MATERIAL CONTRACTS
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Exhibit 10.5</font></div>
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PARAGON COMMERCIAL BANK</font></div>
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SALARY CONTINUATION AGREEMENT</font></div>
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FOR</font></div>
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STEVEN E. CROUSE</font></div>
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<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">This</font> <font style="font-weight: bold; color: #000000">SALARY CONTINUATION
AGREEMENT</font> <font style="color: #000000">(this
&#x201C;Agreement&#x201D;) is entered into as of this
29</font><font style="font-size: 70%; vertical-align: top; color: #000000">th</font>
<font style="color: #000000">day of December, 2016, by and between
Paragon Commercial Bank, a North Carolina-chartered bank (the
&#x201C;Bank&#x201D;), and Steven E. Crouse,</font> an executive of
the Bank (the &#x201C;Executive&#x201D;).</font></div>
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<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">WHEREAS</font>, this Agreement is entered into
by the Bank to <font style="color: #000000">provide a salary
continuation benefit to the Executive, and</font></font></div>
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<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; color: #000000">WHEREAS</font><font style="color: #000000">, the parties hereto intend that this Agreement be
considered an unfunded arrangement maintained primarily to provide
supplemental retirement benefits for the Executive, and to be
considered a non-qualified benefit plan for purposes of the
Employee Retirement Income Security Act of 1974, as amended
(&#x201C;ERISA&#x201D;). The Executive is fully advised of the
Bank&#x2019;s financial status.</font></font></div>
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<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; color: #000000">NOW
THEREFORE</font><font style="color: #000000">, in consideration of
these premises and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the
Executive and the Bank hereby agree as follows.</font></font></div>
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ARTICLE I</font></div>
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DEFINITIONS</font></div>
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<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; color: #000000">1.1</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="font-weight: bold; color: #000000">&#x201C;Accrual
Balance&#x201D;</font> <font style="color: #000000">means the
liability that should be accrued by the Bank under generally
accepted accounting principles (&#x201C;GAAP&#x201D;) for the
Bank&#x2019;s obligation to the Executive under this Agreement. The
Accrual Balance shall be calculated such that when it is credited
with interest each month the Accrual Balance at Normal