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 ROBERT E.
LINEBACK, JR., an executive of the Company and a resident of North Carolina (the “Executive”), and is
effective as of January 1, 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 Executive previously entered into an Employment Continuity Agreement dated April 23, 2001, by and
between the Company and the Executive (the “Prior Employment Contract”), and such Prior Employment
Contract currently sets forth the terms and conditions of the Executive’s employment with the Company.
The Stock Option and Compensation Committee of the Board (the “Committee”) has recommended, and the
Board has approved, entering into this amended and restated Agreement with the Executive in order to achieve
the foregoing objectives.
1. Prior Employment Contract. As of the Effective Date, the Executive and the Company agree that the Prior