EMPLOYMENT CONTINUITY AGREEMENT
THIS EMPLOYMENT CONTINUITY AGREEMENT (this “Agreement”) is between LSB
BANCSHARES, INC., a North Carolina Corporation (referred to in this Agreement as the “Company,” which
term includes any subsidiary of the Company unless the context clearly indicates otherwise), and DAVID P.
BARKSDALE, an executive of the Company and a resident of North Carolina (the “Executive”), and is effective
as of August 16, 2004 (the “Effective Date”).
The Company’s Board of Directors (the “Board”) acknowledges that the Executive’s contributions to the
growth and success of the Company will be substantial.
Outstanding management of the Company is essential to advancing the best interests of the Company and its
shareholders. The Board believes that the objective of securing and retaining the Executive will be achieved if the
Executive is given assurances of employment security so that he will not be distracted by personal uncertainties
The Board believes that such assurances will secure the continued services of the Executive in the
performance of his regular duties and such extra duties as may be required of him during periods of uncertainty
and will enable the Company to rely on such Executive to manage its affairs with less concern for his personal
The Stock Option and Compensation Committee of the Board (the “Committee”) has recommended, and the
Board has approved, entering into this Agreement with the Executive in order to achieve the foregoing objectives.
1. Term . Upon execution by the Company and the Executive, this Agreement is effective as of the Effective
Date. Unless terminated in accordance with Sections 3(a)(i) or 3(a)(ii) of this Agreement, the term of this
Agreement will commence as of the Effective Date and continue until the first anniversary of the Effective Date,
and the term of this Agreement shall automatically be extended an additional one day whenever the term of the
Agreement has less t