Document:

Exhibit 10.4

 Exhibit 10.4 

SEVERANCE AND NON-COMPETITION AGREEMENT 

THIS SEVERANCE AND NON-COMPETITION AGREEMENT (this “Agreement”) is made and entered as of the
            day of             , 2014 by and between Macon Bank, Inc. (“Employer”) and
            (“Executive”). 
 BACKGROUND 

WHEREAS, the expertise and experience of Executive, and Executive’s relationships and reputation in the banking industry are extremely
valuable to the Employer; and 
 WHEREAS, it is in the best interests of the Employer to maintain an experienced and sound executive
management team to manage the Employer and to further the Employer’s overall strategies to protect and enhance the value of its owners’ investments; and 

WHEREAS, the Employer and Executive desire to enter into this Agreement to provide for the Executive’s rights and obligations upon
termination of employment; and 
 WHEREAS, this Agreement is an agreement for the payment of severance benefits in certain circumstances but
is not to be deemed an agreement of employment for any period. 
 NOW, THEREFORE, in consideration of the foregoing and of the mutual
covenants and agreements set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

1. Effective Date. The effective time and date of this Agreement shall be deemed to be 12:00:01 o’clock, a.m., on the date of its
making set forth above (the “Effective Date”). 
 2. Definitions. The following defined terms are defined in the
referenced Sections of this Agreement. 
  

			
	 Term
	  	 Section

	 Accrued Obligations
	  	Section 3(a)
	 Business
	  	Section 6(a)
	 Cause
	  	Section 3(a)
	 Change of Control
	  	Section 3(a)
	 Code
	  	Section 3(a)
	 Date of Termination
	  	Section 3(a)
	 Disability
	  	Section 3(a)
	 Effective Date
	  	Section 1
	 Employer Group
	  	Section 6(b)
	 Good Reason
	  	Section 3(a)
	 Governmental Authorities
	  	Section 13(a)
	 Management
	  	Section 3(a)
	 Notice of Termination
	  	Section 3(a)
	 Other Benefits
	  	Section 3(b)
	 Person
	  	Section 6(b)
	 Restricted Period
	  	Section 6(a)
	 Rules
	  	Section 6(f)
	 Section 409A
	  	Section 3(a)
	 Terminate
	  	Section 3(a)
	 Territory
	  	Section 6(a)
	 Welfare Benefit Plans
	  	Section 3(b)

  

 3. Obligations of the Employer Upon Termination. 

(a) For purposes of this Agreement, the following terms shall have the meanings ascribed to them herein. 

“Cause” shall mean: 
  

	 	(i)	the continued failure of Executive to perform substantially Executive’s duties with the Employer, other than any such failure resulting from Disability, after a written demand for substantial performance is
delivered to Executive by the President and Chief Executive Officer of the Employer or his designee (collectively referred to as “Management”), which specifically identifies the manner in which Management believes that Executive has
not substantially performed Executive’s duties; 

  

	 	(ii)	the engaging by Executive in illegal conduct or gross misconduct which is materially and demonstrably injurious to the Employer; 

  

	 	(iii)	insubordination with respect to one or more directives of Management after receipt of a written warning from Management with respect thereto; or 

 

	 	(iv)	an act by Executive which constitutes a material breach of Executive’s fiduciary duty to the Employer and which has an adverse impact upon the reputation or business of the Employer. 

“Change of Control” shall mean (i) a Change of Ownership; (ii) a Change in Effective Control; or (iii) a
Change of Asset Ownership; in each case, as defined herein and as further defined and interpreted in Section 409A. 
 A.
“Change in Effective Control” shall mean the date either (i) any “Person” or “Group” (as those terms are defined in or pursuant to Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended, but
not including Entegra or any “employee benefit plan” (as defined in or pursuant to the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1002(3) of Entegra or the Bank) acquires (or has acquired during the preceding 12
months) ownership of outstanding stock of Entegra possessing 30% or more of the total voting power of Entegra’s outstanding stock or (B) a majority of the Board of Directors of Entegra is replaced during any 12 month period by directors
whose election is not endorsed by a majority of the members of the Entegra Board prior to such election. 

  
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 B. “Change of Asset Ownership” shall mean the date any Person or Group
acquires (or has acquired during the preceding 12 months) assets from Entegra or the Employer that have a total gross fair market value that is equal to or exceeds 40% of the total gross fair market value of all of Entegra’s consolidated assets
immediately prior to such acquisition. 
 C. “Change of Ownership” shall mean the date any Person or Group acquires
ownership of outstanding stock of Entegra that, together with stock previously held, constitutes more than 50% of the total fair market value or total voting power of the stock of Entegra provided that such Person or Group did not previously own 50%
or more of the value of voting power of the outstanding stock of Entegra. 
 “Date of Termination” shall mean (i) if
Executive’s employment is Terminated by the Employer for Cause or without Cause, the date of receipt of the Notice of Termination or any later date specified therein, as the case may be, (ii) if Executive’s employment is Terminated by
reason of death or Disability, the Date of Termination shall be the date of death of Executive or the date on which Executive is deemed to have a Disability, as the case may be, or (iii) if Executive voluntarily Terminates employment or
Terminates employment for Good Reason, the date of the Employer’s receipt of a Notice of Termination from Executive. 

“Disability” shall mean the absence of Executive from Executive’s duties with the Employer on a full-time basis for at
least 30 of any 45 consecutive business days as a result of incapacity due to mental or physical illness or injury which is determined to be total and permanent by a physician selected by the Employer, or the insurers of the Employer, and acceptable
to Executive or Executive’s legal representative, which acceptance shall not be unreasonably withheld, subject to the Employer’s obligations, and Executive’s rights, under (A) the Americans With Disabilities Act, 42 U.S. C.
§§ 1210 et seq., and (B) the Family and Medical Leave Act, 29 U. S.C. §§ 2601 et seq. (and the regulations promulgated under the foregoing Acts). 

“Entegra” means Entegra Financial Corp. 

“Good Reason” shall mean that following a Change of Control, there shall occur: (i) a material diminution in
Executive’s authority, duties, or responsibilities; (ii) a material change in the geographic location at which Executive must perform the services to be performed by Executive pursuant to this Agreement; and (iii) any other action or
inaction that constitutes a material breach by the Employer of this Agreement. Executive must provide notice of voluntary Termination at least 30 days prior to the applicable Date of Termination. Executive must provide notice to the Employer of the
condition Executive contends is Good Reason within 30 days of the initial existence of the condition, and the Employer must have a period of at least 30 days to remedy the condition. If the condition is not remedied, Executive must provide a Notice
of Termination within 30 days of the end of the Employer’s remedy period. 

  
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 “Notice of Termination” shall mean written notice of Termination delivered by
the Employer to Executive by hand delivery, facsimile transmission or United States mail, postage prepaid. 
 “Terminate”
(and derivatives thereof) shall mean, when used in connection with a cessation of employment, that the Executive has incurred a separation from service as defined in Section 409A of the Internal Revenue Code of 1986, as amended (the
“Code”), and guidance and regulations issued thereunder (“Section 409A”). 
 (b) Termination Without Cause or For Good
Reason. Subject to Section 11, if the Employer shall Terminate Executive’s employment without Cause or if Executive shall Terminate Executive’s employment for Good Reason, then in consideration of Executive’s services
rendered prior to such Termination; 
  

	 	(i)	the Employer shall pay to Executive the aggregate of the following amounts: 

  

	 	A.	in a lump sum on the 30th day following the Date of Termination, (1) Executive’s Base Salary through the Date of Termination to the extent not theretofore
paid, and (2) any accrued vacation pay, in each case to the extent not theretofore paid (the sum of the amounts described in clauses (1) and (2) shall be hereinafter referred to as the “Accrued Obligations”); and

  

	 	B.	in             (            ) as equal as possible semi-annual installments, beginning on the first
day of the first calendar month following the Date of Termination, an amount equal to             (            ) times
Executive’s Base Salary; and 

  

	 	(ii)	to the extent not theretofore paid or provided and to the extent due in connection upon a Termination of employment, the Employer shall timely pay or provide to Executive any other amounts or benefits required to be
paid or provided herein or which Executive is eligible to receive under any welfare benefit plan, practice, policy or program provided by the Employer (including, without limitation, medical, hospitalization, prescription, dental, disability,
employee group life, accidental death and dismembership, and travel accident insurance plans and programs (“Welfare Benefit Plans”) in which Executive is a participant; and 

 

	 	(iii)	 for a period of             months following the Date of Termination, the Employer shall
continue to provide medical, hospitalization, prescription and dental insurance coverages (“Insurance Coverages”) to Executive and/or Executive’s family at least equal to those which would have been provided to them in accordance

  
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with the Employer’s Insurance Coverages as of the Date of Termination had Executive’s employment not been terminated; provided, however, that if Executive becomes employed with another
employer and is eligible to receive substantially the same benefits under the other employer’s plans as Executive and/or Executive’s family would receive under the Insurance Coverages, the Insurance Coverages shall be secondary to those
provided under the other employer’s plans. 

 (c) Death. If Executive’s employment is terminated by reason of
Executive’s death, this Agreement shall terminate without further obligations to Executive’s legal representatives under this Agreement, except that: (i) Accrued Obligations shall timely be paid as provided below; and (ii) Other
Benefits shall be timely paid or provided as described below. Accrued Obligations shall be paid to Executive’s estate or beneficiary, as applicable, in a lump sum in cash on the 30th day after the Date of Termination. With respect to the
provision of Other Benefits, the term “Other Benefits” as utilized in this Section 3(c) shall mean, and Executive’s estate and/or beneficiaries shall be entitled to receive, all benefits under the Employer’s Welfare
Benefit Plans relating to death benefits. Without limiting the foregoing, for one (1) year after Executive’s death, the Bank shall pay any premium required for any “qualified beneficiary” to continue his or her health care
coverage in accordance with Title 1, Part 6 of the Employee Retirement Security Act of 1974, as amended. 
 (d) Disability. If
Executive’s employment is terminated by reason of Executive’s Disability, this Agreement shall terminate without further obligations to Executive, except that: (i) Accrued Obligations shall be timely paid as provided below; and
(ii) Other Benefits shall be timely paid or provided as described below. Accrued Obligations shall be paid to Executive in a lump sum in cash on the 30th day after the Date of Termination. With respect to the provision of Other Benefits, the
term Other Benefits as utilized in this Section 3(d) shall include, without limitation, and Executive shall be entitled after the Date of Termination to receive, all disability benefits under all Welfare Benefit Plans relating to disability.

 (e) Cause; Voluntary Termination. If Executive’s employment shall be Terminated for Cause or if Executive voluntarily
Terminates Executive’s employment, this Agreement shall terminate without further obligations to Executive, except that (i) the Accrued Obligations shall be paid in a lump sum in cash on the 30th day after the Date of Termination, and
(ii) Other Benefits shall be paid or provided in a timely manner, in each case to the extent theretofore unpaid; provided, however, that Executive’s right to continue to participate in Welfare Benefit Plans shall terminate on the 30th day
following the Date of Termination, subject to Executive’s rights under the Consolidated Omnibus Budget Reconciliation Act of 1985, 29 U.S.C. §§ 1161 et seq. 

4. Non-Exclusivity of Rights. Nothing in this Agreement shall prevent or limit Executive’s continuing or future participation in
any plan, program, policy, or practice provided by the Employer and for which Executive may qualify, nor shall anything herein limit or otherwise affect such rights as Executive may have under any other contract or agreement with the Employer.
Amounts which are vested benefits or which Executive is otherwise entitled to 

  
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receive under any plan, policy, practice or program of or any other contract or agreement with the Employer at or subsequent to a Date of Termination shall be payable in accordance with such
plan, policy, practice or program or such other contract or agreement except as explicitly modified by this Agreement. 
 5. Full
Settlement. The Employer’s obligation to make the payments and provide the benefits set forth in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or
other claim, right or action which the Employer may have against Executive or others. The Employer agrees to recognize as an indebtedness to Executive and shall reimburse all legal fees and expenses which Executive may reasonably incur as a result
of any contest (regardless of the outcome thereof) by the Employer, Executive or others of the validity or enforceability of, or liability under, any provision of this Agreement (including as a result of any contest by Executive about the amount of
any payment pursuant to this Agreement) in which the outcome is deemed by a court of competent jurisdiction to have been in majority part favorable to Executive, plus in each case interest on any delayed payment at the “applicable federal
rate” provided for in Section 7872(f)(2)(A) of the Code. 
 6. Covenants of Executive. 

(a) Covenant Not to Compete. During the period beginning on the Date of Termination and continuing through the end of the following
            (            ) month period (the “Restricted Period”), Executive shall not, within the area composed
of the circles surrounding Employer’s then existing banking offices from or through which it provides loan and/or deposit taking services, with each circle having the applicable such banking office as its center point and a radius of 50 miles
(the “Territory”), directly or indirectly, in any capacity, render services, or engage or have a financial interest in, any business that shall be competitive with any of those business activities in which Entegra, the Employer or
any of their respective subsidiaries or affiliates (the “Employer Group”) is engaged as of the date of this Agreement, which business activities include, but are not limited to, the provision of banking services (collectively, the
“Business”); provided, however, that Executive’s ownership of less than five percent (5%) of the outstanding securities of any entity engaged in the Business that has a class of securities listed on a securities exchange
or qualified for quotation on any over-the-counter market shall not be a violation of the foregoing. 
 (b) Covenant Not to Solicit
Customers. During the Restricted Period, Executive shall not, directly or indirectly, individually or on behalf of any other natural person, corporation, partnership, limited liability company, trust, business trust or other business entity
(each a “Person”) (other than a member of the Employer Group), offer to provide banking services to any person, partnership, corporation, limited liability company, or other entity who is or was (i) a customer of any member of
the Employer Group during any part of the 12 month period immediately prior to the Date of Termination, or (ii) a potential customer to whom any member of the Employer Group offered to provide banking services during any part of the 12 month
period immediately prior to the Date of Termination. 

  
 6 

 (c) Covenant Not to Solicit Employees. During the Restricted Period, Executive shall not,
directly or indirectly, individually or on behalf of any Person, solicit, recruit or entice, directly or indirectly, any employee of any member of the Employer Group to leave the employment of such member to work with Executive or with any Person
with whom Executive is or becomes affiliated or associated. 
 (d) Non-Disparagement; Confidentiality. Executive covenants and agrees
that following Termination of Executive’s employment for any reason, Executive shall not disparage, hold up to ridicule or make false statements, whether directly or by inference, regarding any member of the Employer Group or any of their
respective directors, officers, employees or agents, the financial results or financial condition of any member of the Employer Group, or the prospects of any member of the Employer Group. 

  
 7 

 Executive further covenants and agrees that during the Employment Period and thereafter,
Executive shall hold inviolate and secret, and shall not use for Executive’s personal benefit or the benefit of any Person other than members of the Employer Group, all confidential and/or proprietary information of any member of the Employer
Group, including, but not limited to, all processes, procedures, programs, know-how, trade secrets, pricing strategies and techniques, investment strategies and techniques, marketing plans and strategies, personnel information, customer lists,
analyses and compilations of customer information, financial projections, and other similar information, regardless of the form in which such information is obtained, retained or maintained by or on behalf of any member of the Employer Group.
Executive agrees that the foregoing obligations are in addition to, and not in limitation of Executive’s confidentiality obligations or duties under applicable corporate law, federal securities laws, or federal or state financial institution
laws. 
 (e) Reasonableness of Scope and Duration. The parties hereto agree that the covenants and agreements contained in this
Section 6 are reasonable in their time, territory and scope, and they intend that they be enforced, and no party shall raise any issue of the reasonableness of the time, territory or scope of any such covenants in any proceeding to enforce any
such covenants. 
 (f) Enforceability. Executive agrees that monetary damages would not be a sufficient remedy for any breach or
threatened breach of the provisions of this Section 6, and that in addition to all other rights and remedies available to the Employer, it shall be entitled to specific performance and injunctive or other equitable relief as a remedy for any
such breach or threatened breach. Any determination of whether Executive has violated such covenants shall be made by arbitration in Greensboro, North Carolina under the Rules of Commercial Arbitration (the “Rules”) of the American
Arbitration Association, which Rules are deemed to be incorporated by reference herein. 
 (g) Separate Covenants and Severability.
The covenants and agreements contained in this Section 6 shall be construed as separate and independent covenants. Should any part or provision of any such covenant or agreement be held invalid, void or unenforceable in any court of competent
jurisdiction, no other part or provision of this Agreement shall be rendered invalid, void or unenforceable by a court of competent jurisdiction, no other part or provision of this Agreement shall be rendered invalid, void or unenforceable as a
result. If any portion of the foregoing provisions is found to be invalid or unenforceable by a court of competent jurisdiction unless modified, it is the intent of the parties that the otherwise invalid or unreasonable term shall be reformed, or a
new enforceable term provided, so as to most closely effectuate the provisions as is validly possible. 
 7. Assignment and
Successors. 
 (a) Executive. This Agreement is personal to Executive and without the prior written consent of the Employer shall
not be assignable by Executive otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by Executive’s legal representatives. 

  
 8 

 (b) The Employer. This Agreement shall inure to the benefit of and be binding upon the
Employer and its successors and assigns. The Employer will require any successor to it (whether direct or indirect, by stock or asset purchase, merger, or otherwise) to all or substantially all of its business or more than 50% of its assets to
assume expressly and agree to perform this Agreement in the same manner and to the same extent it would be required to perform it if no such succession had taken place. 

8. Regulatory Intervention. Notwithstanding anything in this Agreement to the contrary, the obligations of the Employer under this
Agreement are subject to the following terms and conditions: 
 (a) If the Executive is suspended and/or temporarily prohibited from
participating in the conduct of the Employer’s affairs by any federal or state regulatory authority having jurisdiction over the Employer or any of its activities (“Governmental Authorities”), the Employer’s obligations
under this Agreement shall be suspended during such period Executive is so suspended or prohibited from participation. If the charges in the notice are dismissed, all of the Employer’s obligations which were suspended shall be reinstated. 

(b) If Executive is removed and/or permanently prohibited from participating in the conduct of the Employer’s affairs by an order of a
Governmental Authority, all obligations of the Employer under this Agreement shall terminate as of the effective date of the order, but vested rights of the parties shall not be affected. 

(c) With regard to the provisions of Section 7(a) and (b): 
  

	 	(i)	The Employer agrees to use its best efforts to oppose any such notice of charges as to which there are reasonable defenses; 

  

	 	(ii)	In the event the notice of charges is dismissed or otherwise resolved in manner that will permit the Employer to resume its obligations to pay severance benefit hereunder, the Employer will promptly be obligated to
perform hereunder; and 

  

	 	(iii)	During any period of suspension under Section 8(a), the vested rights of Executive shall not be affected except to the extent precluded by such notice. 

9. Certain Payments Delayed for a Specified Employee. If Executive is a “specified employee” as defined in Section 409A
of the Code, then any payment(s) under this Agreement on account of a “separation from service” as defined in Section 409A shall be made and/or shall begin on the first day of the seventh month following the date of the
Executive’s Termination to the extent such payments are not exempt from Section 409A, and the six month delay in payment is required by Section 409A. 

  
 9 

 10. Miscellaneous. 

(a) No Mitigation. Executive shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other
employment or otherwise, and no such payment shall be offset or reduced by the amount of any compensation or benefits provided to Executive in any subsequent employment, in each case except as otherwise provided in Section 3(c). 

(b) Waiver. Failure of either party to insist, in one or more instances, on performance by the other in strict accordance with the terms
and conditions of this Agreement shall not be deemed a waiver or relinquishment of any right granted in this Agreement or of the future performance of any such term or condition or of any other term or condition of this Agreement, unless such waiver
is contained in a writing signed by the party making the waiver. 
 (c) Severability. If any provision or covenant, of any part
thereof, of this Agreement should be held by any court to be invalid, illegal or unenforceable, either in whole or in part, such invalidity, illegality or unenforceability shall not affect the validity, legality enforceability of the remaining
provisions or covenants, or any part thereof, of this Agreement, all of which shall remain in full force and effect. 
 (d) Other
Agents. Nothing in this Agreement is to be interpreted as limiting the Employer from employing other personnel on such terms and conditions as may be satisfactory to it. 

(e) Entire Agreement. Except as provided herein, this Agreement contains the entire agreement between the Employer and Executive, with
respect to the subject matter hereof and supersedes and invalidates any previous employment and severance agreements or contracts with Executive. No representations, inducements, promises or agreements, oral or otherwise, which are not embodied
herein, shall be of any force or effect. 
 (f) Compliance with Section 409A. It is intended that this Agreement shall conform
with all applicable Section 409A requirements to the extent Section 409A applies to any provisions of the Agreement. Accordingly, in interpreting, construing or applying any provisions of the Agreement, the same shall be construed in such
manner as shall meet and comply with Section 409A, and in the event of any inconsistency with Section 409A, the same shall be reformed so as to meet the requirements of Section 409A. Executive acknowledges that the Employer has not
made any representation or warranty regarding the treatment of this Agreement or the benefits payable under this Agreement under federal, state or local income tax laws, including but not limited to Section 409A. 

(g) Governing Law. Except to the extent preempted by federal law, the laws of the State of North Carolina shall govern this Agreement in
all respects, whether as to its validity, construction, capacity, performance or otherwise. 

  
 10 

 (h) Notices. All notices, requests, demands and other communications required or permitted
hereunder shall be in writing and shall be deemed to have been duly given if delivered by hand or through facsimile transmission, or three (3) days after mailing if mailed, first class, certified mail, postage prepaid: 

 

	
	 To the Employer:
  

Macon Bank, Inc.
  

___________________

___________________

Attention: President and Chief Executive Officer

Facsimile
Number:                                        

  
 To Executive:

 
 ___________________

___________________

___________________

Facsimile
Number:                                        

 Any party may change the address to which notices, requests, demands and other communications shall be delivered or mailed by
giving notice thereof to the other party in the same manner provided herein. 
 (i) Amendments and Modifications. This Agreement may
be amended or modified only by a writing signed by all parties hereto, which makes specific reference to this Agreement. Provided, further, that no amendment or modification to this Agreement shall be adopted unless it complies with
Section 409A to the extent Section 409A applies to this Agreement and/or to the amendment or modification. 
 11. Conditions To
Payment. Executive’s (a) right to receive payments and benefits under this Agreement shall be conditioned upon Executive’s execution and delivery as of the Date of Termination of the Separation Agreement attached hereto as
Appendix A and Executive’s determination to not revoke such Separation Agreement as provided therein, and (b) right to receive continuing payments under Section 3(b) shall be conditioned upon Executive’s performance of
Executive’s obligations under Section 6. 

  
 11 

 IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Severance and
Non-Competition Agreement as of the date first above written. 
  

			
	MACON BANK, INC.
		
	By:	 	  

		 	Roger D. Plemens, President and Chief
		 	Executive Officer
	
	EXECUTIVE:
	  

  
 12 

 APPENDIX A 

SEPARATION AGREEMENT 

This Agreement is made by and between Macon Bank, Inc. (hereinafter the “Company”) and
            for himself/herself and his/her heirs, executors, administrators, assigns, representatives, and agents (hereinafter the “Employee”). 

For reasons separately discussed between the Company and the Employee, the Employee’s employment with the Company shall terminate as of
5:00 o’clock, p.m.,             on             , 20    . 

In exchange and consideration for the respective promises, waivers and releases of the Company and the Employee herein and in the Severance
and Non-Competition Agreement between the Company and the Employee which consideration the parties agree is adequate consideration, the Company and the Employee agree as follows: 

1. The Employee releases the Company and its parent corporation, and their respective subsidiaries, affiliates, successors and assigns; its
present and former shareholders, directors, officers, agents, representatives and attorneys; and its present and former employees (collectively and individually, in their official capacities with the Company, its parent corporation and/or any of
their respective subsidiaries and in their individual capacities) (the “Released Parties”) from any and all claims, demands, and causes of action of any nature whatsoever, including but not limited to any claim under state or federal
employment discrimination statutes relating to race, color, religion, sex, age, disability, or national origin, including, but not limited to, the Americans with Disabilities Act, 42 U.S.C. §§ 12101-12213; the Age Discrimination in
Employment Act, 29 U.S.C. §§ 621-634; and Title VII of the Civil Rights Act of 1964, 42 U.S.C. §§ 2000e-2000e-17, whether or not such claims are asserted or unasserted prior to the effective date of this Agreement. The
Employee understands that this Agreement is a general, unconditional release with respect to all such possible claims. 
 2. The Employee
waives his/her right to seek or recover any monetary, equitable, or other relief from the Released Parties on account of any claims, damages, expenses, and/or injury the Employee might have, whether or not such are known prior to the effective date
of this Agreement. The Employee understands that this Agreement is a general, unconditional waiver with respect to all possible relief the Employee might seek. 

3. The Employee agrees to return all Company property issued to him/her. 

4. The Employee agrees not to seek employment with the Company in the future and releases any and all rights he/she may have to re-employment
or consideration for employment with the Company or its parent corporation, or any of their respective subsidiaries. 
 5. The Employee
covenants that he/she will not in the future file, and that he/she does not have any pending, (a) administrative charges with any local, state, or federal agency or (b) civil actions relating to or based upon events which have occurred
prior to the effective date of this Agreement, in each case against any Released Party. 

  
 A-1 

 6. The Employee acknowledges that he/she has been hereby advised in writing and has been
encouraged to consult an attorney concerning this Agreement and the meaning and consequences of signing it. The Employee acknowledges that he/she has been hereby advised that he/she has a period of 21 days within which to consider this Agreement and
that, by executing this Agreement, he/she enters into this Agreement freely, voluntarily, and after having been afforded the opportunity to consult with counsel. The Employee further acknowledges that he/she has been hereby advised that he/she has
seven (7) days following his/her execution of this Agreement within which he/she may revoke this Agreement and that this Agreement will become effective and enforceable only after such revocation period has expired. To revoke his/her acceptance
of this Agreement, the Employee must provide written notice of such revocation so that it is received by the Company’s President and Chief Executive Officer, within seven (7) days following his/her execution of the Employee Acceptance of
this Agreement attached hereto. 
 7. The Employee agrees that the Severance and Non-Competition Agreement sets forth all compensation and
benefits due to him/her as of the date of the termination by the Company. 
 8. Except as expressly stated above, the parties, by executing
this Agreement, acknowledge that this Agreement and the Severance and Non-Competition Agreement set forth and constitute the entire agreement between the parties with respect to the subject matter hereof and thereof, and it is expressly understood
that no amendment, deletion, addition, modification, or waiver of any provision of this Agreement shall be binding or enforceable unless in writing and signed by all parties. This Agreement shall be governed by the laws of the State of North
Carolina without regard to the conflicts of law principles thereof. 

  
 A-2 

 ACKNOWLEDGMENT OF OFFER ONLY 

The Company acknowledges that on this the      day of         ,
20    , it has offered the Employee this Agreement. Such offer will remain open for at least 21 days from this date or until it is accepted by the Employee, whichever is earlier. If the Employee has not accepted this Agreement
within 21 days, the Company may revoke its offer of this Agreement to Employee without further action. 
 This the     
day of         , 20    . 
  

			
	MACON BANK, INC.
		
	By:	 	  

		 	  

 ACKNOWLEDGMENT OF RECEIPT ONLY 

The Employee acknowledges that this Agreement was offered to him/her for his/her consideration on the      day of
        , 20    , and that he/she has 21 days from such date in which to consult with counsel and consider this Agreement. 

This the      day of         , 20    . 

 

	
	   

	  

 EMPLOYEE ACCEPTANCE OF THIS AGREEMENT 

The Employee acknowledges that he/she has been afforded the opportunity to consult with an attorney, has chosen to voluntarily enter into this
Agreement for the purposes and consideration and on the terms stated therein, and hereby accepts this Agreement. He/she understands that this Agreement will not become effective for seven (7) days after the date stated below, during which seven
(7) day period he may revoke his acceptance of this Agreement in the manner provided in this Agreement. 
 This the
     day of         , 20    . 
  

	
	   

	  

  
 A-3 

 COMPANY ACCEPTANCE OF THIS AGREEMENT 

The Company hereby accepts this Agreement. 

This the      day of         , 20    . 

 
  

			
	MACON BANK, INC.
		
	By:	 	  

		 	  

  
 A-4Exhibit 10.5

 Exhibit 10.5 

FORM OF AGREEMENT OF MERGER BETWEEN 

MACON BANCORP AND 

ENTEGRA FINANCIAL CORP. 

THIS AGREEMENT OF MERGER (the “Merger Agreement”) dated as of
                , 2014, is made by and among Macon Bancorp (“Macon Bancorp”) and Entegra Financial Corp. (the “Holding Company”). Capitalized terms
have the respective meanings given them in the Plan of Conversion (the “Plan”) of Macon Bancorp dated January 23, 2014, unless otherwise defined herein. 

RECITALS: 
 1. The Holding
Company is a North Carolina stock corporation. 
 2. Macon Bancorp is a North Carolina mutual holding company that owns 100% of the capital
stock of Macon Bank (the “Bank”). 
 3. At least a majority of the entire Board of Directors of each of Macon Bancorp and the
Holding Company have approved this Merger Agreement whereby Macon Bancorp will merge with an into the Holding Company, with the Holding Company as the surviving or resulting corporation (the “Merger”), and have authorized the execution and
delivery of this Merger Agreement. 
 NOW, THEREFORE, in consideration of the premises and mutual agreements contained herein, the
parties hereto have agreed as follows: 
 1. Merger. At and on the Effective Date of the Merger, Macon Bancorp will merge with and
into the Holding Company with the Holding Company as the Surviving or resulting entity (“Resulting Corporation”) whereby the Bank will become a wholly owned subsidiary of the Holding Company and Eligible Depositors of the Bank will
automatically, without further action on the part of the Eligible Depositors, receive an interest in the Liquidation Account in exchange for their ownership interests in Macon Bancorp. 

2. Effective Date. The Merger shall not be effective until and unless (i) the Plan is approved by the Boards of Directors of Macon
Bancorp and the Holding Company, and at least a majority of the eligible votes of Voting Members, (ii) any required approvals of the Plan by Bank Regulators have been received, and (iii) the Articles of Merger shall have been accepted for
filing with respect to the Merger. Approval of the Plan by the Voting Members shall constitute approval of this Merger Agreement and the Conversion by the Voting Members. 

3. Name. The name of the Resulting Corporation shall be Macon Bancorp. 

4. Offices. The main office of the Resulting Corporation shall be 220 One Center Court, Franklin, North Carolina 28734. 

 5. Directors and Officers. The directors and officers of Macon Bancorp immediately prior
to the Effective Date shall be the directors and officers of the Resulting Corporation after the Effective Date. 
 6. Rights and Duties
of the Resulting Corporation. At the Effective Date, Macon Bancorp shall be merged with and into the Holding Company with the Holding Company as the Resulting Corporation. The business of the Resulting Corporation shall be as provided in its
Articles of Incorporation. All assets, rights, interests, privileges, powers, franchises and property (real, personal and mixed) of the Holding Company and Macon Bancorp shall be transferred automatically to and vested in the Resulting Corporation
by virtue of the Merger without any deed or other document of transfer. The Resulting Corporation, without any order or action on the part of any court or otherwise and without any documents of assumption or assignment, shall hold and enjoy all of
the properties, franchises and interest, including appointments, powers, designations, nominations and all other rights and interests as the agent or other fiduciary in the same manner and to the same extent as such rights, franchises, and interests
and powers were held or enjoyed by the Holding Company and Macon Bancorp. The Resulting Corporation shall be responsible for all of the liabilities, restrictions and duties of every kind and description of the Holding Company and Macon Bancorp
immediately prior to the Merger, including liabilities for all debts, obligations and contracts of the Holding Company and Macon Bancorp, matured or unmatured, whether accrued, absolute, contingent or otherwise and whether or not reflected or
reserved against on balance sheets, books or accounts or records of the Holding Company or Macon Bancorp. All rights of creditors and other obliges and all liens on property of the Holding Company and Macon Bancorp shall be preserved and shall not
be released or impaired. 
 7. Rights of Stockholders. At the Effective Date, 100% of the Bank’s issued and outstanding common
stock will be owned by the Resulting Corporation and Eligible Depositors of the Bank will automatically, without further action on the part of the Eligible Depositors, receive an interest in the Liquidation Account in exchange for their ownership
interests in Macon Bancorp. 
 8. Other Terms. All terms used in this Merger Agreement shall, unless defined herein, have the meanings
set forth in the Plan. The Plan is incorporated herein by this reference and made a part hereof to the extent necessary or appropriate to effect and consummate the terms of this Merger Agreement and the Conversion. 

Remainder of Page Intentionally Left Blank 

 IN WITNESS WHEREOF, the Holding Company and Macon Bancorp have caused this Merger
Agreement to be executed as of the date first above written. 
  

									
	 ATTEST:
	 		 	MACON BANCORP
				
	 	 		 	By:	 	 
		 	
                         
                                Secretary
	 		 		 	Roger D. Plemens
		 		 		 		 	President and Chief Executive Officer
			
	ATTEST:	 		 	ENTEGRA FINANCIAL CORP.
				
	 	 		 	By:	 	 
		 	                                     
                    Secretary	 		 		 	Roger D. Plemens
		 		 		 		 	President and Chief Executive Officer

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