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AGREEMENT

    

THIS AGREEMENT, dated as of January 14, 2016, is made and entered into by and between ARROGENE, INC., a Delaware corporation ("Company" or “Employer”) and JACK KAVANAUGH ("Consultant").  For the definition of certain terms used in this Agreement, see Section 6 below.

    

The Company and Consultant agree as follows:

Section 1.  Employment.

1.1.

Engagement.  Effective the date above written (“Effective Date”) the Company will engage the services of Consultant, and Consultant will accept such engagement, as an consultant of Company for the Term, subject to and in accordance with the provisions of this Agreement.

1.2.

Duties.  During the Term, Consultant will serve Company in the capacity of Executive Chairman.  During the Term, Consultant shall also serve as Chairman of the Board of Directors (“Board”) as an uncompensated position.  Consultant's duties as a Consultant of Company include strategic planning, fundraising, business development and staff development, all in conformity with the provisions of the Company’s bylaws. Consultant's duties will also include such other activities, responsibilities and duties as may reasonably be assigned from time to time by the Board.  

1.3.

Attention and Effort.  During normal business hours, Consultant will devote Consultant's best efforts, entire productive time, ability and attention to the business of Company. Consultant shall be required to devote such time, effort and attention to the affairs of the Company as may from time to time be requested by the Board, subject to the agreement of Consultant.  Further, during the Term, Consultant will not, without Company's prior written consent, directly or indirectly engage in any employment, consulting or other activity which would interfere or conflict with the performance of Consultant's duties or obligations to Company or which would directly or indirectly compete with Company.

1.4

Conflicted Interest Transactions.     Consultant acknowledges and agrees that he will abstain from exercising any right to vote in his capacity as a director or shareholder of the Company on any matter in which he has a personal interest, including, without limitation, any vote on the exercise by the Company of its rights under the Series A Certificate, as defined below, or the rights of the Company under this Agreement.

Section 2.  Compensation.

2.1.

Series A Convertible Preferred Stock.   In full compensation for all services to be performed by Consultant for the Company, the Company agrees to sell and issue to Consultant an aggregate of 2.4 million shares of Series A Convertible Preferred Stock (the “Shares” or “Series A Preferred Stock”).  In consideration of the Shares, Consultant shall pay to the Company the sum of $240 (the “Purchase Price”), the receipt and sufficiency whereof is hereby acknowledged.  

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Concurrently with the execution and delivery of this Agreement, Consultant shall execute and deliver a Subscription Agreement substantially in the form of Exhibit 2.1 hereto making customary representations and warranties.

2.2

Certificate of Designations of Series A Convertible Preferred Stock.   The Shares of Series A Preferred Stock shall be issued under and pursuant to a Certificate of Designations of Rights and Preferences of Series A Convertible Preferred Stock (“Series A Certificate”) in the form of Exhibit 2.2 hereof.  Consultant accepts the Shares subject to the terms and conditions of the Series A Certificate. The terms and conditions of the Series A Certificate shall be deemed incorporated herein by this reference.

2.3

Repurchase Rights.   During the Term,  the Shares of Series A Preferred Stock sold to Consultant under the terms of this Agreement shall be subject to the right of the Company to repurchase a portion of such Shares as more fully set forth in the Series A Certificate (the “Repurchase Rights”). 

2.4

Incentive and Other Compensation.  Unless otherwise approved by the Board, the Consultant shall not be entitled to any incentive compensation, bonus or other forms of remuneration for services performed under this Agreement.

2.5.

Benefits.  During the Term, Consultant will not be entitled to participate in such fringe benefit programs (e.g., medical, dental, disability, life insurance and vacation programs) as may be provided from time to time by the Company to other executive officers or employees.  

2.6.

Expenses.  During the Term, Company will reimburse Consultant for reasonable out-of-pocket expenses incurred by Consultant in performance of service for Company under this Agreement (e.g., transportation, lodging and food expenses incurred while traveling on Company business), all subject to such policies and other requirements as Company may from time to time establish for its Consultants generally.

Section 3.  Term and Termination.

3.1.

Commencement.  The Term will commence on the date of this Agreement. 

3.2.

Termination.  Either the Company or Consultant shall have the right to terminate this Agreement at any time, for any reason whatsoever, upon written notice to the other party. Any termination of this Agreement by either party shall be deemed to constitute Consultant’s resignation as a director and executive officer of the Company.  Upon termination, the Company’s Repurchase Rights, as defined in the Series A Certificate, may be exercised in accordance with the terms and conditions set forth therein. 

3.3.

Return of Company Property.  Upon termination of the Term, Consultant will deliver to Company any and all property of Company which is in Consultant's possession or control (including, but not limited to, any and all Materials).

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3.4.

Survival.  Sections 4 and 5, together with all other provisions of this Agreement that may reasonably be interpreted or construed to survive any termination of the Term, will survive any termination of the Term.

Section 4.

  Confidentiality and Work Product.

4.1.

Confidential Information.  In the course of Consultant's engagement with Company, Consultant will have access to certain Confidential Information.  Consultant will use and disclose Confidential Information solely for the purposes for which it is provided and will take reasonable precautions to prevent any unauthorized use or disclosure of the same.  Consultant will not use or disclose any Confidential Information (a) other than as required in the course of Consultant's engagement with Company, (b) for Consultant's own personal gain, or (c) in any manner contrary to the best interests of Company.

4.2.

Proprietary Information of Others.  Consultant will not use in the course of Consultant's engagement with Company, or disclose or otherwise make available to Company any information, documents or other items which Consultant may have received from any other person (e.g., a prior employer) and which Consultant is prohibited from so using, disclosing or making available (e.g., by reason of any contract, court order, law or obligation by which Consultant is bound).

4.3.

Work Product.  All Work Product as a result of Consultant’s work with the Company which Consultant conceives, develops or first reduces to practice, either alone or with others, during the Term will be the sole and exclusive property of Company, together with any and all related Intellectual Property Rights.  The foregoing applies to all Work Product which relates to Consultant's performance of services under this Agreement, Company's Field of Business or Company's actual or demonstrably anticipated research or development and whether or not such Work Products are conceived, developed or first reduced to practice during normal business hours or with the use of any equipment, supplies, facilities, personnel, Confidential Information or other resource of Company.

4.4.

Disclosure and Protection of Work Products.  Consultant will disclose all Work Products described in paragraph 4.3 to Company, promptly and in writing.  At Company's request and at Company's expense, Consultant will assist Company or its designee in efforts to protect such Work Products.  Such assistance may include, but is not necessarily limited to, the following:  (a) making application in the United States and in foreign countries for a patent or copyright on any Work Products specified by Company; (b) executing documents of assignment to Company or its designee of all Consultant's right, title and interest in and to any Work Product and related Intellectual Property Rights; and (c) taking such additional action (including, but not limited to, the execution and delivery of documents) to perfect, evidence or vest in Company or its designee all rights, title and interest in and to any Work Product and any related Intellectual Property Right.

4.5.

Materials.  All Materials and related Intellectual Property Rights will be the sole and exclusive property of Company, whether or not such Materials are marked with any Intellectual Property Right notice of Company or Consultant.  All such Materials authored, made, conceived or developed by Consultant or made available to Consultant (or any copies or extracts thereof) will be held by Consultant in trust solely for the benefit of Company.  Consultant will use 

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such Materials only as required in the course of Consultant's engagement with Company or as otherwise authorized in writing by Company.

4.6.

Exceptions.  This Agreement does not apply to any invention for which no equipment, supplies, facility or trade secret information of Company was used, and which was developed entirely on Consultant's own time, unless:  (a) the invention relates (i) directly to the Company or (ii) to Company's actual or demonstrable anticipated research or development; or (b) the invention results from any work performed by Consultant for Company.

Section 5.  Noncompetition and Nonsolicitation.

5.1.

Noncompetition.  During the Term and for a period of two (2) years after the end of the Term, Consultant will not directly or indirectly be employed by, own, manage, operate, join, control or participate in the ownership, management, operation or control of or be connected with any business activity which is within Company's Field of Business within a radius of 100 miles from any geographical territory or location where the Company transacts business.  For purposes of the foregoing, Consultant will be deemed to be connected with such business if the business is carried on by:  (a) a partnership in which the Consultant is general or limited partner; (b) a corporation of which Consultant is a shareholder(other than a shareholder owning less than 5% of the total outstanding shares of the corporation), officer, or director; or is an employee, consultant, agent, member or other representative. Notwithstanding the provisions of this Section 5.1, and for the avoidance of doubt, it is agreed that Consultant’s involvement with other companies in cancer, stem cell and longevity therapies so long as not in direct competition with the Company shall not be deemed a violation of this Agreement, and Consultant may continue such activities throughout the term of this Agreement.

5.2.

Nonsolicitation.  During the Term and for a period of two (2) years after the end of the Term, Consultant will not directly or indirectly solicit or entice any of the following to cease, terminate or reduce any relationship with Company or to divert any business from Company;  (a) any employee, consultant or representative of Company; (b) any contractor or supplier of Company; (c) any customer or client of Company; or (d) any prospective customer or client from which Consultant solicited business within the last year of the Term.  Further, Consultant will not directly or indirectly disclose the names, dresses, telephone numbers, compensation, or arrangements between Company and any person or entity described in (a), (b) or (c) above to any competitor of Company.

Section 6.  Definitions.

Whenever used in this Agreement with initial letters capitalized, the following terms will have the following specified meanings:

6.1.

"Board" means Company's Board of Directors.

6.2.

"Company's Field of Business" means any of the fields of the Company's business.  On the date of the Agreement, Company's Field of Business includes, but is not necessarily limited to, the following:  The development, clinical translation and commercialization of 

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nanobiopharmaceuticals for human diseases, as well as the development of novel diagnostic drugs for human disease detection.

6.3.

"Confidential Information" means any information that is confidential, proprietary or trade secret information of Company or any of its customer or clients or any other information the use of disclosure of which by Company is prohibited or restricted (e.g., by reason of any contract, court order, law or other obligation by which Company is bound).  "Confidential Information" may include, but is not necessarily limited to, technology, computer programs, business plans, marketing plans, information as to existing or future products or services of Company, financial projections, unpublished works of original authorship, customer lists, financial information, and trade secrets.

Notwithstanding the foregoing, the restrictions on disclosure and use of information and materials as set forth in Section 4 shall not apply to the following, and the following is not confidential or proprietary information:  (1) any information or materials which were generally available to the public at the time made available to Consultant by the Company; (2) any information or materials which become, without breach of Section 4 and through no fault of Consultant, generally available to the public; (3) any information or materials which Consultant has received from other sources prior to the date of this Agreement, subject to no restrictions on disclosure applicable to Consultant; and (4) any information or materials which Consultant at any time lawfully obtains from a third party who is not under any obligation of secrecy or confidentiality to the Company, under circumstances permitting disclosure by Consultant to others without restriction.

6.4.

"Intellectual Property Right" means any patent, copyright, trade secret, trade name, trademark or other intellectual property right.

6.5.

"Materials" means hardware, software, programs, manuals, drawings, designs, articles, writings, data, notes, memorandum, manuscripts, notebooks, proposals, work plans, interim and final reports, project files, client contract records and other tangible manifestations of any Confidential Information or Work Products.

6.6.

"Term" means the term of Consultant's engagement as an Consultant of Company pursuant to this Agreement.

6.7.

"Work Product" means any invention, discovery, concept or idea (including, but not necessarily limited to, hardware, software programs, or processes, techniques, know-how, methods, systems, improvements, analytical reports, and other developments).

Section 7.  Miscellaneous.

7.1.

Compliance with Laws.  In the performance of this Agreement, each party will comply with all applicable laws, regulations, rules, orders and other requirements of governmental authorities having jurisdiction.

7.2.

Equitable Relief.  Consultant acknowledges that:  the provisions of Sections 4 and 5 are essential to Company; Company would not enter into this Agreement if it did not include such provisions; the damages sustained by Company as a result of any breach of such 

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provisions cannot be adequately remedied by damages; and, in addition to any other right or remedy that Company may have (e.g., under this Agreement, by law or otherwise), Company will be entitled to injunctive and other equitable relief to prevent or curtail any breach of any such provisions.

7.3.

Nonwaiver.  The failure of either party to insist upon or enforce strict performance by the other of any provision of this Agreement or to exercise any right, remedy or provision of this Agreement will not be interpreted or construed as a waiver or relinquishment to any extent of such party's right to consent or rely upon the same in that or any other instance; rather, the same will be and remain in full force and effect.

7.4.

Entire Agreement.  This Agreement constitutes the Entire Agreement, and supersedes any and all prior Agreements, between Company and Consultant.  No amendment, modification or waiver of any of the provisions of this Agreement will be valid unless set forth in a written instrument signed by the party to be bound thereby.

7.5.

Applicable Law.  This Agreement will be interpreted, construed and enforced in all respects in accordance with the local laws of the State of California, without reference to its choice of law rules.

7.6.

Attorneys Fees.  In the event that either party consults or retains an attorney to enforce the terms of this Agreement, the prevailing party in any such dispute or litigation shall be entitled to recover from the other party its reasonable attorneys fees and costs incurred.

7.7.

Severability.  If any of the provisions of this Agreement are held to be invalid or unenforceable, the remaining provisions shall nevertheless continue to be valid and enforceable to the extent permitted by law.

Company:

ARROGENE, INC., a Delaware corporation

By:  /s/ Maurizio Vecchione 

Its: CEO

Consultant:

/s/ Jack Kavanaugh

JACK KAVANAUGH

-6-Exhibit 10.1

 

AGREEMENT

 

THIS AGREEMENT (the “Agreement”),
dated this 20th day of January, 2016, is by and among ASB Bancorp, Inc. (the “Company”) and Asheville
Savings Bank (the “Bank,” and collectively with the Company, “ASB”), Seidman and Associates,
L.L.C. (“SAL”), Seidman Investment Partnership, L.P. (“SIP”), Seidman Investment Partnership
II, L.P. (“SIPII”), Seidman Investment Partnership III, L.P. (“SIPIII”), LSBK06-08, L.L.C.
(“LSBK”), Broad Park Investors, L.L.C. (“Broad Park”), Chewy Gooey Cookies, L.P. (“Chewy”),
2514 Multi-Strategy Fund, L.P. (“2514 MSF”), CBPS, LLC (“CBPS”), Veteri Place Corporation
(“Veteri”), JBRC I, LLC (“JBRC”), and Lawrence B. Seidman, an individual (“Seidman”
and collectively with SAL, SIP, SIPII, SIPIII, LSBK, Broad Park, Chewy, 2514 MSF, CBPS, Veteri, and JBRC, the “Seidman
Group” (each a “Seidman Group Member”)), and Kenneth J. Wrench, an individual (“Wrench”).

 

RECITALS

 

WHEREAS, ASB, the Seidman Group,
and Wrench have agreed that it is in their mutual interests to enter into this Agreement.

 

NOW THEREFORE, in consideration of
the Recitals and the representations, warranties, covenants, and agreements contained herein and other good and valuable consideration,
and intending to be legally bound hereby, the parties hereto agree as follows:

 

1.          Representations
and Warranties of the Seidman Group Members. The Seidman Group Members represent and warrant to ASB as follows:

 

(a)          The
Seidman Group has fully disclosed in Exhibit A to this Agreement the total number of shares of common stock of the Company,
par value $0.01 per share (“Company Common Stock”), to which it or Wrench is the beneficial owner, and neither
the Seidman Group nor any Seidman Group Member nor any of their affiliates has (i) a right to acquire any interest in any capital
stock of the Company, or (ii) a right to vote any shares of capital stock of the Company other than as set forth in Exhibit
A;

 

(b)          The
Seidman Group and the Seidman Group Members have full power and authority to enter into and perform their obligations under this
Agreement, and the execution and delivery of this Agreement by the Seidman Group and Seidman Group Members has been duly authorized
by the Seidman Group and the Seidman Group Members. This Agreement constitutes a valid and binding obligation of the Seidman Group
and each Seidman Group Member, and the performance of its terms will not constitute a violation of any limited partnership agreement,
articles of incorporation, bylaws, operating agreement, or any agreement or instrument to which the Seidman Group or any Seidman
Group Member is a party; and

 

(c)          There
are no arrangements, agreements, or understandings concerning the subject matter of this Agreement between the Seidman Group or
any Seidman Group Member and ASB or between the Seidman Group or any Seidman Group Member and Wrench other than as set forth in
this Agreement.

 

     

     

    

  

2.          Representations
and Warranties of the Company and the Bank.

 

(a)          The
Company and the Bank hereby represent and warrant to the Seidman Group that the Company and the Bank have full power and authority
to enter into and perform their respective obligations under this Agreement and that the execution and delivery of this Agreement
by the Company and the Bank has been duly authorized by the Board of Directors of the Company and the Bank. This Agreement constitutes
a valid and binding obligation of the Company and the Bank, and the performance of its terms will not constitute a violation of
their respective articles of incorporation, charter, or bylaws or any agreement or instrument to which the Company or the Bank
is a party; and

 

(b)          The
Company and the Bank hereby represent and warrant to the Seidman Group that there are no arrangements, agreements, or understandings
concerning the subject matter of this Agreement between the Seidman Group or any Seidman Group Member and ASB other than as set
forth in this Agreement.

 

3.          Covenants.

 

(a)          During
the term of this Agreement, ASB covenants and agrees as follows:

 

(i)          Upon
receipt of all necessary regulatory approvals for the appointment of Seidman, the Company will take all necessary and appropriate
corporate action to appoint Seidman to the class of directors thereof whose term expires at the Annual Meeting of Shareholders
expected to be held in May 2016 (the “2016 Annual Meeting”) and to renominate him at the 2016 Annual Meeting
for a three-year term to expire at the Annual Meeting of Shareholders currently expected to be held in May 2019. Upon receipt of
all necessary regulatory approvals for the appointment of Seidman, the Company and the Bank shall take all necessary and appropriate
action to appoint Seidman to the same terms of office on the Board of Directors of the Bank. The parties hereto understand and
agree that any new director of the Company and the Bank, including Seidman, must receive all necessary regulatory approvals and
non-objections, including those of the North Carolina Commissioner of Banks (“NCCOB”), before commencing service
as a director of the Company or the Bank. The parties hereto agree to act in good faith and cooperate with each other in promptly
submitting all necessary notices to the NCCOB contemplated hereby. The parties hereto acknowledge and agree that they anticipate
that Seidman will be added to the Boards of Directors of the Company and the Bank starting with the March 2016 meetings of the
Boards of Directors of the Company and the Bank;

 

(ii)         Upon
receipt of all necessary regulatory approvals for the appointment of Wrench, the Company will take all necessary and appropriate
corporate action to appoint Wrench to the class of directors thereof whose term expires at the Annual Meeting of Shareholders expected
to be held in May 2018 (the “2018 Annual Meeting”) and to renominate him at the 2016 Annual Meeting for a two-year
term set to expire at the 2018 Annual Meeting. Upon receipt of all necessary regulatory approvals for the appointment of Wrench,
the Company and the Bank shall take all necessary and appropriate action to appoint Wrench to the same terms of office on the Board
of Directors of the Bank. The parties hereto understand and agree that any new director of the Company and the Bank, including
Wrench, must receive all necessary regulatory approvals and non-objections, including those of the NCCOB, before commencing service
as a director of the Company or the Bank. The parties hereto agree to act in good faith and cooperate with each other in promptly
submitting all necessary notices to the NCCOB contemplated hereby. The parties hereto acknowledge and agree that they anticipate
that Wrench will be added to the Boards of Directors of the Company and the Bank starting with the March 2016 meetings of the Boards
of Directors of the Company and the Bank;

 

(iii)        Upon
their appointment and qualification to the Company’s and the Bank’s Boards of Directors, Seidman and Wrench shall be
treated on a consistent basis with other members of the Company’s and the Bank’s Board of Directors with respect to
compensation and benefits; and

 

     

     

    

 

(iv)        Should
Seidman’s position (or the position of any replacement appointed pursuant to this Section 3(a)(iv)) as a director of the
Company or the Bank be terminated during the term of this Agreement due to his resignation, death, permanent disability, or otherwise,
or should Seidman (or any such replacement) fail to receive the necessary regulatory approvals for his appointment, the Company
and the Bank shall each appoint a replacement director, selected by Seidman (each, a “Seidman Replacement Director”),
subject to the approval of the Company, which approval shall not be unreasonably withheld, and such Seidman Replacement Director
shall, subject to his or her agreement to honor the provisions of Sections 3(d) and 3(e) hereof and any required regulatory approval,
be appointed promptly (within 60 days) to the Boards of the Company and the Bank.

 

(v)         Should
Wrench’s position (or the position of any replacement appointed pursuant to this Section 3(a)(v)) as a director of the Company
or the Bank be terminated during the term of this Agreement due to his resignation, death, permanent disability, or otherwise,
or should Wrench (or any such replacement) fail to receive the necessary regulatory approvals for his appointment, the Company
and the Bank shall each appoint a replacement director, selected by Seidman (each, a “Wrench Replacement Director”),
subject to the approval of the Company, which approval shall not be unreasonably withheld, and such Wrench Replacement Director
shall, subject to his or her agreement to honor the provisions of Sections 3(d) and 3(e) hereof and any required regulatory approval,
be appointed promptly (within 60 days) to the Boards of the Company and the Bank.

 

(b)          During
the term of this Agreement, the Seidman Group and each Seidman Group Member covenant and agree not to do the following, directly
or indirectly, alone or in concert with any affiliate, other group, or other person; provided, however, that nothing herein shall
prevent or limit Seidman from (x) expressing his views or positions on matters related to the Company’s or the Bank’s
business, operations, or policies to other members of the Company’s or the Bank’s Board of Directors or management,
or (y) otherwise engaging in lawful acts in his capacity as a director of the Company or the Bank in such manner as may be necessary
or appropriate in order to fulfill his duties as a director:

 

(i)          acquire,
offer, or propose to acquire or agree to acquire, whether by purchase, tender or exchange offer, or through the acquisition of
control of another person or entity (including by way of merger or consolidation) any additional shares of the outstanding Company
Common Stock, any rights to vote or direct the voting of any additional shares of Company Common Stock, or any securities convertible
into Company Common Stock (except by way of stock splits, stock dividends, stock reclassifications, or other distributions or offerings
made available and, if applicable, exercised on a pro rata basis, to holders of the Company Common Stock generally); provided,
however, notwithstanding anything to the contrary set forth herein, the Seidman Group may acquire additional shares of the outstanding
Company Common Stock provided that the Seidman Group’s Beneficial Ownership will not exceed 9.9% of the outstanding shares
of Company Common Stock;

 

(ii)         without
the Company’s prior written consent, directly or indirectly, sell, transfer, or otherwise dispose of any interest in the
Seidman Group’s shares of Company Common Stock to any person the Seidman Group believes, after reasonable inquiry, would
be the beneficial owner after any such sale or transfer of more than 5% of the outstanding shares of the Company Common Stock;

 

(iii)        (A)
propose or seek to effect a merger, consolidation, recapitalization, reorganization, sale, lease, exchange, or other disposition
of substantially all the assets of, or other business combination involving, or a tender or exchange offer for securities of, the
Company or the Bank or any material portion of the Company’s or the Bank’s business or assets or any type of transaction
that would result in a change in control of the Company (any such transaction described in this clause (A) is a “Company
Transaction” and any proposal or other action seeking to effect a Company Transaction as described in this clause (A)
is defined as a “Company Transaction Proposal”), (B) seek to exercise any control or influence over the management
of the Company or the Boards of Directors of the Company or the Bank or any of the businesses, operations, or policies of the Company
or the Bank, (C) present to the Company, its shareholders, or any third party any proposal constituting or that could reasonably
be expected to result in a Company Transaction, or (D) seek to effect a change in control of the Company;

 

     

     

    

  

(iv)        publicly
suggest or announce its willingness or desire to engage in a transaction or group of transactions or have another person engage
in a transaction or group of transactions that would constitute or could reasonably be expected to result in a Company Transaction
or take any action that might require the Company to make a public announcement regarding any such Company Transaction;

 

(v)         initiate,
request, induce, encourage, or attempt to induce or give encouragement to any other person to initiate any proposal constituting
or that can reasonably be expected to result in a Company Transaction Proposal, or otherwise provide assistance to any person who
has made or is contemplating making, or enter into discussions or negotiations with respect to, any proposal constituting or that
can reasonably be expected to result in a Company Transaction Proposal;

 

(vi)        solicit
proxies or written consents or assist or participate in any other way, directly or indirectly, in any solicitation of proxies or
written consents, or otherwise become a “participant” in a “solicitation,” or assist any “participant”
in a “solicitation” (as such terms are defined in Rule 14a-1 of Regulation 14A and Instruction 3 of Item 4 of Schedule
14A, respectively, under the Securities Exchange Act of 1934 (the “Exchange Act”)) in opposition to any recommendation
or proposal of the Company’s Board of Directors, or recommend or request or induce or attempt to induce any other person
to take any such actions, or seek to advise, encourage, or influence any other person with respect to the voting of (or the execution
of a written consent in respect of) the Company Common Stock, or execute any written consent in lieu of a meeting of the holders
of the Company Common Stock or grant a proxy with respect to the voting of the capital stock of the Company to any person or entity
other than the Board of Directors of the Company;

 

(vii)       (A)
initiate, propose, submit, encourage, or otherwise solicit shareholders of the Company for the approval of one or more shareholder
proposals or induce or attempt to induce any other person to initiate any shareholder proposal, (B) seek election to, or seek to
place a representative or other affiliate or nominee on, the Company’s Board of Directors (other than with respect to the
provisions of Sections 3(a)(i), (ii), (iv), and (v), providing for the possible election of Seidman, Wrench, a Seidman Replacement
Director, or a Wrench Replacement Director), or (C) seek removal of any member of the Company’s or the Bank’s Boards
of Directors or any executive officer of the Company or the Bank;

 

(viii)      form,
join in, or in any other way (including by deposit of the Company’s capital stock), participate in a partnership, pooling
agreement, syndicate, voting trust, or other group with respect to Company Common Stock, or enter into any agreement or arrangement
or otherwise act in concert with any other person, for the purpose of acquiring, holding, voting, or disposing of Company Common
Stock;

 

(ix)         (A)
join with or assist any person or entity, directly or indirectly, in opposing, or make any statement in opposition to, any proposal
or director nomination submitted by the Company’s Board of Directors to a vote of the Company’s shareholders, or (B)
join with or assist any person or entity, directly or indirectly, in supporting or endorsing (including supporting, requesting,
or joining in any request for a meeting of shareholders in connection with), or make any statement in favor of, any proposal submitted
to a vote of the Company’s shareholders that is opposed by the Company’s Board of Directors;

 

     

     

    

  

(x)          vote
for any proposal, nominee, or nominees for election to the Board of Directors of the Company other than those nominated or supported
by the Company’s Board of Directors;

 

(xi)         except
in connection with the enforcement of this Agreement, initiate or participate, by encouragement or otherwise, in any litigation
against the Company or the Bank or their respective officers and directors, or in any derivative litigation on behalf of the Company
or the Bank, except for testimony which may be required by law;

 

(xii)        request,
or induce or encourage any other person to request, that the Company amend or waive any of the provisions of this Agreement; and

 

(xiii)       advise,
assist, encourage, or finance (or arrange, assist, or facilitate financing to or for) any other person in connection with any of
the matters restricted by, or otherwise seek to circumvent the limitations of, this Agreement.

 

(c)          In
the event that Seidman breaches Section 3(b), he shall promptly resign his positions as a director of the Company and the Bank
or withdraw his name from nomination; in the event that Seidman fails to resign or withdraw his name after a breach in accordance
with the provisions of this Section 3(c), the Seidman Group agrees that the remaining directors of the Company and the Bank, by
majority vote thereof, may remove Seidman from his directorship positions with the Company and the Bank or remove his name from
nomination, as the case may be. Any resignation by Seidman pursuant to this Section 3(c) shall not trigger the right to appoint
a Seidman Replacement Director as provided in Section 3(a)(iv).

 

(d)          (i)          Wrench
agrees that during the term of this Agreement he will not take any action, directly or indirectly, which, if Wrench were deemed
to be a Seidman Group Member, would be in violation of or inconsistent with any of the covenants and agreements made by the Seidman
Group in Section 3(b) hereof; provided, however, that nothing herein shall prevent Wrench from acquiring additional shares of Company
Common Stock in order to meet at least the minimum requirements for Company directors under the Company’s policies; and provided,
further, that nothing herein shall prevent or limit Wrench from (x) expressing his views or positions on matters related to the
Company’s or the Bank’s business, operations, or policies to other members of the Company’s or the Bank’s
Board of Directors or management, or (y) otherwise engaging in lawful acts in his capacity as a director of the Company or the
Bank in such manner as may be necessary or appropriate in order to fulfill his duties as a director; and

 

(ii)         In
the event that Wrench breaches clause (i) of this Section 3(d), he shall promptly resign his positions as a director of the Company
and the Bank or withdraw his name from nomination; in the event that Wrench fails to resign or withdraw his name after a breach
in accordance with the provisions of this clause (ii), Wrench and the Seidman Group agree that the remaining directors of the Company
and the Bank, by majority vote thereof, may remove Wrench from his directorship positions with the Company and the Bank or remove
his name from nomination, as the case may be. Any resignation by Wrench pursuant to this Section 3(d) shall not trigger the right
to appoint a Wrench Replacement Director as provided in Section 3(a)(v).

 

(e)          During
the term of this Agreement, each Seidman Group Member and Wrench agree not to disparage the Company, the Bank, or any of their
directors (including nominees supported by the Company’s Board of Directors), officers, or employees in any public or quasi-public
forum, and the Company and the Bank agree not to disparage any Seidman Group Member or Wrench in any public or quasi-public forum.

 

     

     

    

 

(f)          During
the term of this Agreement, at any Annual Meeting of Shareholders of the Company, the Seidman Group, each Seidman Group Member,
and Wrench, if applicable, covenant and agree, and shall require each of their affiliates, to vote all the shares of Company Common
Stock beneficially owned by them in favor of the nominees for election or re-election as directors of the Company selected by the
Board of Directors of the Company and otherwise support such director candidates.

 

4.          Notice
of Breach and Remedies. The parties expressly agree that an actual or threatened breach of this Agreement by any party will
give rise to irreparable injury that cannot adequately be compensated by damages.

 

Accordingly, in addition to any other remedy
to which it may be entitled, each party shall be entitled to seek a temporary restraining order or injunctive relief to prevent
a breach of the provisions of this Agreement or to secure specific enforcement of its terms and provisions.

 

The Seidman Group and each Seidman Group
Member expressly agree that they will not be excused or claim to be excused from performance under this Agreement as a result of
any material breach by ASB unless and until ASB is given written notice of such breach and allowed 30 business days either to cure
such breach or seek relief in court. If ASB seeks relief in court, the Seidman Group and each Seidman Group Member irrevocably
stipulate that any failure to perform by the Seidman Group and/or any Seidman Group Member or any assertion by the Seidman Group
and/or any Seidman Group Member that they are excused from performing their obligations under this Agreement because it would cause
ASB irreparable harm, then ASB shall not be required to provide further proof of irreparable harm in order to obtain equitable
relief and that the Seidman Group and each Seidman Group Member shall not deny or contest that such circumstances would cause ASB
irreparable harm. If, after such 30 business day period, ASB has not either reasonably cured such material breach or obtained relief
in court, the Seidman Group or each Seidman Group Member may terminate this Agreement by delivery of written notice to ASB.

 

ASB expressly agrees that it will not be
excused or claim to be excused from performance under this Agreement as a result of any material breach by the Seidman Group or
any Seidman Group Member unless and until the Seidman Group and each Seidman Group Member is given written notice of such breach
and allowed 30 business days either to cure such breach or seek relief in court. If the Seidman Group or any Seidman Group Member
seeks relief in court, ASB irrevocably stipulates that any failure to perform by ASB or any assertion by ASB that it is excused
from performing its obligations under this Agreement because it would cause the Seidman Group and each Seidman Group Member irreparable
harm, then the Seidman Group or any Seidman Group Member shall not be required to provide further proof of irreparable harm in
order to obtain equitable relief and that ASB shall not deny or contest that such circumstances would cause the Seidman Group and
each Seidman Group Member irreparable harm. If, after such 30 business day period, the Seidman Group or the Seidman Group Member
has not either reasonably cured such material breach or obtained relief in court, ASB may terminate this Agreement by delivery
of written notice to the Seidman Group and each Seidman Group Member.

 

5.          Term.
This Agreement shall be effective upon the execution of the Agreement and, with respect to the Seidman Group, will remain in effect
for so long as Seidman (or a Seidman Replacement Director) remains a director of the Company or the Bank and, with respect to Wrench,
will remain in effect for so long as Wrench (or a Wrench Replacement Director) remains a director of the Company or the Bank.

 

     

     

    

 

6.          Publicity.
Attached as Exhibit B is the mutually agreed upon disclosure the Company shall include in its Form 8-K reporting the entry
into this Agreement. In addition, during the term of this Agreement, ASB and the Seidman Group shall each provide to the other
party for such party’s prior review and approval any additional disclosure proposed to be made by ASB or the Seidman Group
concerning this Agreement, unless such additional disclosure is substantially identical to or consistent with the disclosures mutually
agreed to in Exhibit B. During the term of this Agreement, no party to this Agreement shall cause, discuss, cooperate, or
otherwise aid in the preparation of any press release or other publicity concerning any other party to this Agreement or its operations
without the prior approval of such other party.

 

7.          Notices.
All notices, communications and deliveries required or permitted by this Agreement shall be made in writing signed by the party
making the same, shall specify the section of this Agreement pursuant to which it is given or being made and shall be deemed given
or made (a) on the date delivered if delivered by electronic mail, by facsimile, or in person (with receipt confirmed), (b) on
the third business day after it is mailed if mailed by registered or certified mail (return receipt requested) (with postage and
other fees prepaid) or (c) on the day after it is delivered, prepaid, to an overnight express delivery service that confirms to
the sender delivery on such day, as follows:

 

	Seidman Group: 	Lawrence B. Seidman
	 	Seidman and Associates, L.L.C.
	 	100 Misty Lane, 1st Floor
	 	Parsippany, New Jersey 07054
	 	Facsimile: (973) 781-0876
	 	Email: lseidman@seidman-associates.com
	 	 
	With a copy to: 	Michael R. Neidell, Esq.
	 	Olshan Frome Wolosky LLP
	 	Park Avenue Tower
	 	65 East 55th Street
	 	New York, New York 10022
	 	Facsimile: (212) 451-2222
	 	Email: mneidell@olshanlaw.com
	 	 
	Nominee: 	Kenneth J. Wrench
	 	10602 B Bailey Road
	 	Cornelius, North Carolina 28031
	 	Facsimile: (704) 892-7244
	 	E-mail: kenwrench@augustahomesnc.com
	 	 
	ASB: 	Suzanne S. DeFerie
	 	President and Chief Executive Officer
	 	ASB Bancorp, Inc.
	 	Asheville Savings Bank
	 	11 Church Street
	 	Asheville, North Carolina 28801
	 	Facsimile: (828) 252-6710
	 	Email: sdeferie@ashevillesavingsbank.com
	 	 
	With a copy to: 	Neil E. Grayson, Esq.
	 	Nelson Mullins Riley & Scarborough LLP
	 	Poinsett Plaza, Suite 900
	 	104 South Main Street
	 	Greenville, South Carolina 29601
	 	Facsimile: (864) 250-2359
	 	Email: neil.grayson@nelsonmullins.com

 

     

     

    

 

8.          Governing
Law and Choice of Forum. Unless applicable federal law or regulation is deemed controlling, North Carolina law shall govern
the construction and enforceability of this Agreement. Any and all actions concerning any dispute arising hereunder shall be filed
and maintained in the United States District Court for the Western District of North Carolina or, if there is no basis for federal
jurisdiction, in the Buncombe County Superior Court. The Seidman Group, the Seidman Group Members, and Wrench agree that the United
States District Court for the Western District of North Carolina and the Buncombe County Superior Court may exercise personal jurisdiction
over them in any such actions.

 

9.          Severability.
If any term, provision, covenant, or restriction of this Agreement is held by any governmental authority or a court of competent
jurisdiction to be invalid, void, or unenforceable, the remainder of the terms, provisions, covenants, and restrictions of this
Agreement shall remain in full force and effect and shall in no way be affected, impaired, or invalidated.

 

10.         Successors
and Assigns. This Agreement shall be binding upon and shall inure to the benefit of and be enforceable by the successors and
assigns, and transferees by operation of law, of the parties. Except as otherwise expressly provided, this Agreement shall not
inure to the benefit of, be enforceable by, or create any right or cause of action in any person, including any shareholder of
the Company, other than the parties to the Agreement. Nothing contained herein shall prohibit any Seidman Group Member from transferring
any portion or all of the shares of Company Common Stock owned thereby at any time to any affiliate of Seidman or any other Seidman
Group Member but only if the transferee agrees in writing for the benefit of ASB (with a copy thereof to be furnished to ASB prior
to such transfer) to be bound by the terms of this Agreement (any such transferee shall be included in the terms “Seidman
Group” and “Seidman Group Member”).

 

11.         Survival
of Representations, Warranties and Covenants. All representations, warranties and covenants shall survive the execution and
delivery of this Agreement and shall continue for the term of this Agreement unless otherwise provided.

 

12.         Amendments.
This Agreement may not be modified, amended, altered or supplemented except by a written agreement executed by all of the parties.

 

13.         Definitions.
As used in this Agreement, the following terms shall have the meanings indicated, unless the context otherwise requires:

 

(a)          The
term “acquire” means every type of acquisition, whether effected by purchase, exchange, operation of law, or otherwise.

 

(b)          The
term “acting in concert” means (i) knowing participation in a joint activity or conscious parallel action towards a
common goal, whether or not pursuant to an express agreement, or (ii) a combination or pooling of voting or other interests in
the securities of an issuer for a common purpose pursuant to any contract, understanding, relationship, agreement, or other arrangement,
whether written or otherwise.

 

     

     

    

 

(c)          The
term “affiliate” means, with respect to any person, a person or entity that directly, or indirectly through one or
more intermediaries, controls or is controlled by, or is under common control with such other person.

 

(d)          The
term “beneficial owner” shall have the meaning ascribed to it, and be determined in accordance with, Rule 13d-3 of
the Securities and Exchange Commission’s Rules and Regulations promulgated under the Exchange Act.

 

(e)          The
term “change in control” denotes circumstances under which: (i) any person or group becomes the beneficial owner of
shares of capital stock of the Company or the Bank representing 25% or more of the total number of votes that may be cast for the
election of the Boards of Directors of the Company or the Bank, (ii) the persons who were directors of the Company or the Bank
cease to be a majority of the Board of Directors, in connection with any tender or exchange offer (other than an offer by the Company
or the Bank), merger or other business combination, sale of assets or contested election, or combination of the foregoing, or (iii)
shareholders of the Company or the Bank approve a transaction pursuant to which substantially all of the assets of the Company
or the Bank will be sold.

 

(f)          The
term “control” (including the terms “controlling,” “controlled by,” and “under common
control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management,
activities, or policies of a person or organization, whether through the ownership of capital stock, by contract, or otherwise.

 

(g)          The
term “group” has the meaning as defined in Section 13(d)(3) of the Exchange Act.

 

(h)          The
term “person” includes an individual, group acting in concert, corporation, partnership, association, joint stock company,
trust, unincorporated organization or similar company, syndicate, or any other group formed for the purpose of acquiring, holding,
or disposing of the equity securities of the Company.

 

(i)          The
term “transfer” means, directly or indirectly, to sell, gift, assign, pledge, encumber, hypothecate or similarly dispose
of (by operation of law or otherwise), either voluntarily or involuntarily, or to enter into any contract, option or other arrangement
or understanding with respect to the sale, gift, assignment, pledge, encumbrance, hypothecation or similar disposition of (by operation
of law or otherwise), any Company Common Stock or any interest in any Company Common Stock; provided, however, that a merger or
consolidation in which the Company is a constituent corporation shall not be deemed to be the transfer of any common stock beneficially
owned by the Seidman Group or a Seidman Group Member.

 

(j)          The
term “vote” means to vote in person or by proxy, or to give or authorize the giving of any consent as a shareholder
on any matter.

 

14.         Counterparts;
Facsimile. This Agreement may be executed in any number of counterparts and by the parties in separate counterparts, and signature
pages may be delivered by facsimile or electronically, each of which when so executed shall be deemed to be an original and all
of which taken together shall constitute one and the same agreement.

 

15.         Duty
to Execute. Each party agrees to execute any and all documents, and to do and perform any and all acts and things necessary
or proper to effectuate or further evidence the terms and provisions of this Agreement.

 

     

     

    

 

16.         Termination.
This Agreement shall cease, terminate and have no further force and effect upon the expiration of the term as set forth in Section
5, unless earlier terminated pursuant to Section 4 or Section 5 hereof or by mutual written agreement of the parties.

 

[Remainder of this page intentionally
left blank.]

 

     

     

    

 

IN WITNESS WHEREOF, this Agreement
has been duly executed by the undersigned and is effective as of the day and year first above written.

 

	SEIDMAN AND ASSOCIATES, L.L.C.	 	ASB BANCORP, INC.
	 	 	 	 	 
	By:	/s/ Lawrence B. Seidman	 	By:	/s/ Suzanne S. DeFerie
	 	Lawrence B. Seidman	 	 	Suzanne S. DeFerie
	 	Manager	 	 	President and Chief Executive Officer
	 	 	 	 	 
	SEIDMAN INVESTMENT PARTNERSHIP, L.P.	 	ASHEVILLE SAVINGS BANK
	 	 	 	 	 
	By:	Veteri Place Corporation	 	By:	/s/ Suzanne S. DeFerie
	 	General Partner	 	 	Suzanne S. DeFerie
	 	 	 	 	President and Chief Executive Officer

 

	By:	/s/ Lawrence B. Seidman	 
	 	Lawrence B. Seidman	 
	 	President	 
	 	 	 
	SEIDMAN INVESTMENT PARTNERSHIP II, L.P.	 
	 	 	 
	By:	Veteri Place Corporation	 
	 	General Partner	 
	 	 	 
	By:	/s/ Lawrence B. Seidman	 
	 	Lawrence B. Seidman	 
	 	President	 
	 	 	 
	SEIDMAN INVESTMENT PARTNERSHIP III, L.P.	 
	 	 	 
	By:	JBRC I, LLC	 
	 	Co-General Partner	 
	 	 	 
	By:	/s/ Lawrence B. Seidman	 
	 	Lawrence B. Seidman	 
	 	Managing Member	 
	 	 	 
	LSBK06-08, L.L.C.	 
	 	 	 
	By:	Veteri Place Corporation	 
	 	Trading Advisor	 
	 	 	 
	By:	/s/ Lawrence B. Seidman	 
	 	Lawrence B. Seidman	 
	 	President	 

 

     

     

    

 

	BROAD PARK INVESTORS, L.L.C.	 
	 	 	 
	By:	/s/ Lawrence B. Seidman	 
	 	Lawrence B. Seidman	 
	 	Investment Manager	 
	 	 	 
	CHEWY GOOEY COOKIES, L.P.	 
	 	 	 
	By:	/s/ Lawrence B. Seidman	 
	 	Lawrence B. Seidman	 
	 	Investment Manager	 
	 	 	 
	2514 MULTI-STRATEGY FUND, L.P.	 
	 	 	 
	By:	/s/ Lawrence B. Seidman	 
	 	Lawrence B. Seidman	 
	 	Investment Manager	 
	 	 	 
	CBPS, LLC	 
	 	 	 
	By:	Veteri Place Corporation	 
	 	Trading Advisor	 
	 	 	 
	By:	/s/ Lawrence B. Seidman	 
	 	Lawrence B. Seidman	 
	 	President	 
	 	 	 
	VETERI PLACE CORPORATION	 
	 	 	 
	By:	/s/ Lawrence B. Seidman	 
	 	Lawrence B. Seidman	 
	 	President	 
	 	 	 
	JBRC I, LLC	 
	 	 	 
	By:	/s/ Lawrence B. Seidman	 
	 	Lawrence B. Seidman	 
	 	Managing Member	 
	 	 	 
	LAWRENCE B. SEIDMAN	 
	 	 	 
	/s/ Lawrence B. Seidman	 
	Lawrence B. Seidman	 
	 	 	 
	KENNETH J. WRENCH	 
	 	 	 
	/s/ Kenneth J. Wrench	 
	Kenneth J. Wrench	 

 

     

     

    

 

EXHIBIT A

 

The Seidman Group beneficially owns as of the date hereof 265,674
shares of Company Common Stock.

 

Kenneth J. Wrench beneficially owns as of the date hereof
300 shares of Company Common Stock.

 

     

     

    

 

EXHIBIT B

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