Document:

Amended and Restated Terms and Conditions of Deferred Compensation Program

 EXHIBIT 10.6.1 
  
 MASSBANK 
  
 TERMS AND CONDITIONS OF DEFERRED COMPENSATION PROGRAM 
  
 AMENDED AND RESTATED AS OF JANUARY 1, 2005 
  
 1. Eligibility in the Program shall be limited to the employees of MassBank (the “Bank”) designated by the Board
of Directors from time to time (the “Participants”). 
  

					
	 2.
	  	(a)	  	Each Participant who is actively employed by the Bank on October 31, beginning October 31, 1994, shall receive a deferred compensation award in an amount equal to 20% of his Taxable
Compensation during the prior twelve-month period that is in excess of the IRC Section 401(a)(17) annual compensation limit. Each Participant may also receive additional awards approved by the Board of Directors from time to time. All amounts
awarded to a Participant under this Paragraph 2(a) shall be credited to a separate book account (a “Deferred Compensation Account”) in his name as of October 31 of each year.
			
	 	  	 (b)
	  	The term “Taxable Compensation” shall mean the eligible Participant’s annual compensation paid by the Bank and recognized as such under the Bank’s qualified retirement plan
(“SBERA”), but without regard to the IRC Section 401(a)(17) annual compensation limit or any indirect noncash compensation and contributions to this Program.
			
	 	  	(c)	  	The IRC Section 401(a)(17) annual compensation limit is $235,840 for the year ending October 31, 1994, and $150,000 for the year ending October 31, 1995, as adjusted by the Secretary for
increases in the cost-of-living in accordance with Section 401(a)(17)(B) of the Internal Revenue Code of 1986, as amended (the “Code”). The IRS Section 401(a)(17) annual compensation limit is $200,000 for the year ending October 31, 2003.
Such limit is adjusted by the Secretary for increases in the cost-of-living in accordance with Section 401(a)(17)(B) of the Code.

  
 3. The amount standing
to the credit of a Participant’s Deferred Compensation Account shall be deemed invested in one or more the mutual funds chosen by the Participant from time to time in accordance with such rules and regulations adopted by the Administrator. On
and after January 1, 2005, the Administrator shall establish two accounts for each Participant: one account to track amounts deferred and vested as of December 31, 2004 (“Pre-2005 Deferred Compensation Account”) and one account to track
amounts deferred or vested after December 31, 2004 (“Post-2004 Deferred Compensation Account”). From time to time and no less often than once a year, the amount standing to the credit of a Participant’s Deferred Compensation Accounts
shall be adjusted on an equitable basis for deemed earnings or losses. The reasonable determination of such adjustment by the Administrator shall be conclusive and binding on all Participants and their beneficiaries. 

 4. During his period of active employment, no Participant shall have any rights to the amounts which he
has been awarded hereunder. Participation in the Program, and any actions taken pursuant to the Program, shall not create or be deemed to create a trust or fiduciary relationship of any kind between the Bank and the Participant. The Bank may, but
shall have no obligation to, establish any separate fund, reserve, or escrow or to provide security with respect to any amounts awarded under the Plan. Any assets of the Bank which are set aside in any separate fund, reserve or escrow shall continue
for all purposes to be a part of the general assets of the Bank, with title to the beneficial ownership of any such assets remaining at all times in the Bank. No Participant, his legal representatives, or any of his beneficiaries shall have any
right, other than the right of an unsecured general creditor of the Bank, in respect of the Deferred Compensation Accounts established hereunder, and such persons shall have no property interest whatsoever in any specific assets of the Bank.

  

					
	 5.
	  	(a)	  	Except as otherwise provided in Paragraph 6 below, upon the termination of a Participant’s employment with the Bank, the Participant shall be entitled to receive a percentage of the
amount standing to the credit of his Deferred Compensation Accounts. Such percentage shall be calculated according to the vesting schedule provided in SBERA.
			
	 	  	(b)	  	Payment of the Participant’s Pre-2005 Deferred Compensation Account shall be made in a lump sum within 60 days of the Participant’s termination of employment. Payment of the
Participant’s Post-2004 Deferred Compensation Account shall be made in a lump sum in the seventh month after the Participant’s termination of employment. The vested amount standing to the credit of the Participant’s Deferred
Compensation Accounts as of the preceding October 31 shall be adjusted for earnings or losses based on the total investment return on the Participant’s investment choice from November 1 of the year of termination until the end of the month
immediately preceding the date of distribution. Such payment shall completely discharge the Bank’s obligation under the Program and the Participant shall forfeit the non-vested portion of his Deferred Compensation Accounts. The Board of
Directors of the Bank (the “Board”) shall have full power and discretion to award additional vesting to any Participant.

  
 6. Notwithstanding
anything to the contrary contained herein, in the event of a good faith determination by the Board that a Participant (a) committed fraud in respect of any matter involving the Bank in any respect whatsoever, (b) misappropriated an asset or assets
of the Bank, whether tangible or intangible, (c) committed gross misconduct, or (d) has been convicted of a crime involving moral turpitude, then the Participant shall immediately forfeit all rights to amounts credited to such Participant’s
Deferred Compensation Accounts, and the Participant, his estate, or beneficiaries shall have no further rights with respect thereto or any claims against the Bank under this Program. 
  
 7. Any distribution of deferred compensation payments will be reduced by the amounts required to be withheld pursuant to any
governmental law or regulation with respect to taxes or similar provisions. 
  

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 8. If a Participant who has deferred compensation under the Program dies before he has received full
payment of the amount credited to his account, such unpaid portion shall be paid to the Participant’s beneficiary as designated by the Participant in writing. If no beneficiary has been designated or if a designated beneficiary has predeceased
the Participant, such unpaid portion shall be paid to the Participant’s surviving spouse, if any; otherwise to the Participant’s estate. 
  
 9. The deferred compensation payable under this Program shall not be subject to alienation, assignment, garnishment, execution, or levy of any kind, and
any attempt to cause any compensation to be so subjected shall not be recognized. 
  
 10. All expenses incurred, or taxes paid by the Bank, and attributable to a Participant’s Deferred Compensation Accounts shall be borne by the Bank and shall not reduce the amount credited to such Deferred
Compensation Accounts. 
  
 11. Nothing in this Program shall be
construed as giving any Participant the right to be retained in the employ of the Bank in any capacity. The Bank expressly reserves the right to dismiss any employee, at any time, without liability for the effect which such dismissal may have upon
such employee hereunder. 
  
 12. This Program may be amended in
any way or may be terminated, in whole or in part, at any time, and from time to time, by the Board. The foregoing provisions of this paragraph notwithstanding, no amendment or termination of the Program shall adversely affect the amounts payable
hereunder on account of compensation awarded under the Program prior to the effective date of such amendment or termination. No amendment or termination of the Program shall result in any acceleration of payment of benefits to the Participants
unless otherwise permitted by Section 409A of the Code and the guidance issued thereunder. 
  
 13. The Board shall delegate the administration of this Program to an individual who shall serve as the Administrator. The Administrator shall have full power and authority to interpret, construe, and administer this
Program, and the Administrator’s interpretations and construction thereof, and actions hereunder, including any determination of any amount credited or charged to the Participant’s Deferred Compensation Accounts or the amount or recipient
of any payment to be made therefrom, shall be binding and conclusive on all persons for all purposes. 
  
 14. All notices, elections, or designations by a Participant to the Bank shall be delivered in person or by registered mail, postage prepaid, and noted to
be brought to the attention of the Administrator. 
  
 15. The
terms of this Program shall be binding upon and shall inure to the benefit of the Bank and its successors or assigns and each Participant and his beneficiaries, heirs, executors, and administrators. 
  
 16. Subject to its obligation to pay the amount credited to the
Participant’s Deferred Compensation Accounts at the time distribution is called, neither the Bank, any person acting on behalf of the Bank nor the Administrator shall be liable for any act performed or the failure to perform any act with
respect to the terms of the Program, except in the event that there has been a judicial determination of willful misconduct on the part of the Bank, such person or the Administrator. 
  

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 17. This Program, and all actions taken hereunder, shall be governed by and construed in accordance with
the laws of the Commonwealth of Massachusetts, except as such laws may be superseded by any applicable Federal laws. 
  
 18. This Program shall be effective as of October 31, 1994. It is hereby restated as of January 1, 2005 to comply with Section 409A of the Code.

  

					
	 19.
	  	(a)	  	All claims for benefits under this Program shall be filed in writing with the Administrator in accordance with such procedures as the Administrator shall reasonably
establish.
			
	 	  	(b)	  	The Administrator shall, within 90 days of submission of a claim, provide adequate notice in writing to any claimant whose claim for benefits under the Program has been denied. Such notice shall
contain the specific reason or reasons for the denial and references to specific Program provisions on which the denial is based. The Administrator shall also provide the claimant with a description of any material or information which is necessary
in order for the claimant to perfect his claim and an explanation of why such information is necessary. If special circumstances require an extension of time for processing the claim, the Administrator shall furnish the claimant a written notice of
such extension prior to the expiration of the 90-day period. The extension notice shall indicate the reasons for the extension and the expected date for a final decision, which date shall not be more than 180 days from the initial
claim.
			
	 	  	(c)	  	The Administrator shall, upon written request by a claimant within 60 days of receipt of the notice that his claim has been denied, afford a reasonable opportunity to such claimant for a full
and fair review by the Administrator of the decision denying the claim. The Administrator will afford the claimant an opportunity to review pertinent documents and submit issues and comments in writing. The claimant shall have the right to be
represented.
			
	 	  	(d)	  	The Administrator shall, within 60 days of receipt of a request for a review, render a written decision on his review. If special circumstances require extra time for the Administrator to review
his decision, the Administrator will attempt to make his decision as soon as practicable, and in no event will the Administrator take more than 120 days to send the claimant a written notice of his decision.

  
  

 4Executive Salary Continuation Agreement for Edward C. Ashby, III

 EXHIBIT 10.1 
  
 EXECUTIVE SALARY CONTINUATION AGREEMENT 
  
 THIS AGREEMENT, made and entered into this 27th day of June, 2005, by and between Surrey Bank & Trust, a bank
organized and existing under the laws of the State of North Carolina (hereinafter referred to as the “Bank”), and Edward C. Ashby, III, an Executive of the Bank (hereinafter referred to as the “Executive”). 
  
 W I T N E S S E T H: 
  
 WHEREAS, the Executive has been and continues to be a valued Executive
of the Bank, and is now serving the Bank; 
  
 WHEREAS, it
is the consensus of the Board of Directors (hereinafter referred to as the “Board”) that the Executive’s employment with the Bank in the past has been of exceptional merit and has constituted an invaluable contribution to the general
welfare of the Bank in bringing the Bank to its present status of operating efficiency and present position in its field of activity; 
  
 WHEREAS, the Executive’s experience, knowledge of the affairs of the Bank, reputation, and contacts in the industry are so valuable that
assurance of the Executive’s continued employment is essential for the future growth and profits of the Bank and it is in the best interests of the Bank to arrange terms of continued employment for the Executive so as to reasonably assure the
Executive remains in the Bank’s employ during the Executive’s lifetime or until the age of retirement; 
  
 WHEREAS, it is the desire of the Bank that the Executive’s employment be retained as herein provided; 
  
 WHEREAS, the Executive is willing to continue in the employ of the
Bank provided the Bank agrees to pay the Executive or the Executive’s beneficiary(ies), certain benefits in accordance with the terms and conditions hereinafter set forth; 
  
 ACCORDINGLY, it is the desire of the Bank and the Executive to enter into this Agreement under which the Bank will
agree to make certain payments to the Executive at retirement or the Executive’s beneficiary(ies) in the event of the Executive’s death pursuant to this Agreement; 
  
 FURTHERMORE, it is the intent of the parties hereto that this Executive Plan be considered an unfunded arrangement
maintained primarily to provide supplemental retirement benefits for the Executive, and be considered a non-qualified benefit plan for purposes of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). The Executive is
fully advised of the Bank’s financial status and has had substantial input in the design and operation of this benefit plan; and 
  

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 THEREFORE, in consideration of past employment performance and employment to be performed in the
future as well as the mutual promises and covenants herein contained it is agreed as follows: 
  
 I. EFFECTIVE DATE 
  
 The
Effective Date of this Agreement shall be February 17, 2005. 
  
 II. EMPLOYMENT

  
 The Bank agrees to employ the Executive in such capacity
as the Bank may from time to time determine. The Executive will continue in the employ of the Bank in such capacity and with such duties and responsibilities as may be assigned to him, and with such compensation as may be determined from time to
time by the Board of Directors of the Bank. 
  
 III. FRINGE BENEFITS

  
 The salary continuation benefits provided by this
Agreement are granted by the Bank as a fringe benefit to the Executive and are not part of any salary reduction plan or an arrangement deferring a bonus or a salary increase. The Executive has no option to take any current payment or bonus in lieu
of these salary continuation benefits except as set forth hereinafter. 
  
 IV.
DEFINITIONS 
  

	 	A.	Retirement Date: 

  
 If the Executive remains in the continuous employ of the Bank, the Executive shall retire from active employment with the Bank on the Executive’s
sixty-fifth (65th) birthday, unless by action of the Board of Directors this period of active employment shall be
shortened or extended. 
  

	 	B.	Normal Retirement Age: 

  
 Normal Retirement Age shall mean the date on which the Executive attains age sixty-five (65). 
  

	 	C.	Plan Year: 

  
 Any reference to “Plan Year” shall mean a calendar year from January 1 to December 31. In the year of implementation, the term “Plan
Year” shall mean the period from the effective date to December 31 of the year of the effective date. 
  

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	 	D.	Termination of Employment: 

  
 Termination of Employment shall mean voluntary resignation of employment by the Executive or the Bank’s discharge of the Executive without cause
(“cause” defined in Subparagraph IV [E] hereinafter), prior to the Normal Retirement Age (defined in Subparagraph IV [B]). 
  

	 	E.	Discharge for Cause: 

  
 The term “for cause” shall mean any of the following that result in an adverse effect on the Bank: (i) gross negligence or gross neglect; (ii)
the commission of a felony or gross misdemeanor involving fraud or dishonesty; (iii) the willful violation of any law, rule, or regulation (other than a traffic violation or similar offense); (iv) an intentional failure to perform stated duties; or
(v) a breach of fiduciary duty involving personal profit. If a dispute arises as to discharge “for cause”, such dispute shall be resolved by arbitration as set forth in this Executive Plan. 
  

	 	F.	Change of Control: 

  
 Change of Control shall be defined as follows: 
  

	 	a.	the acquisition of more than fifty percent (50%) of the value or voting power of the Bank’s stock by a person or group; 

  

	 	b.	the acquisition in a period of twelve months or less of at least thirty-five percent (35%) of the Bank’s stock by a person or group; 

  

	 	c.	the replacement of a majority of the Bank’s board in a period of twelve months or less by Directors who were not endorsed by a majority of the current board members; or

  

	 	d.	the acquisition in a period of twelve months or less of forty percent (40%) or more of the Bank’s assets by an unrelated entity. 

  
 For the purposes of this Agreement, transfers made on account of deaths or
gifts, transfers between family members or transfers to a qualified retirement plan maintained by the Bank shall not be considered in determining whether there has been a Change in Control. 
  

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 V. RETIREMENT BENEFIT AND POST-RETIREMENT DEATH BENEFIT 
  
 The Bank, commencing with the first day of the month following the
Retirement Date (Subparagraph IV [A]), shall pay the Executive an annual benefit equal to Eighty Nine Thousand Nine Hundred Fourteen and 00/100th Dollars ($89,914.00). Said benefit shall be paid in equal monthly installments (1/12 of the annual benefit) until the death of the Executive. Upon the death of the Executive, if there is a balance in
the accrued liability retirement account, such balance shall be paid in a lump sum to the individual or individuals the Executive may have designated in writing and filed with the Bank. In the absence of any effective beneficiary designation, any
such amount becoming due and payable upon the death of the Executive shall be payable to the duly qualified executor or administrator of the Executive’s estate. Said payment due hereunder shall be made the first day of the second month
following the decease of the Executive. 
  
 If the Executive is a
key employee (as defined by the Internal Revenue Service) of a publicly traded bank at the time of retirement, any such benefit payment shall be withheld for six (6) months, from such retirement. 
  
 VI. DEATH BENEFIT PRIOR TO RETIREMENT 
  
 In the event the Executive should die while actively employed by the Bank at
any time after the date of this Agreement but prior to the Executive attaining the age of sixty-five (65) years (or such later date as may be agreed upon), the Bank will pay the accrued balance, on the date of death, of the Executive’s accrued
liability retirement account in one (1) lump sum to such individual or individuals as the Executive may have designated in writing and filed with the Bank, at which time this Agreement shall terminate. In the absence of any effective beneficiary
designation, any such amount becoming due and payable upon the death of the Executive shall be payable to the duly qualified executor or administrator of the Executive’s estate. Said payment due hereunder shall be made by the first day of the
second month following the decease of the Executive. 
  
 VII. BENEFIT
ACCOUNTING/ACCRUED LIABILITY RETIREMENT ACCOUNT 
  
 The Bank
shall account for this benefit using the regulatory accounting principles of the Bank’s primary federal regulator. The Bank shall establish an accrued liability retirement account for the Executive into which appropriate reserves shall be
accrued. 
  
 VIII. VESTING 
  
 Executive shall be one hundred percent (100%) vested in the accrued
liability retirement account from the Effective Date of this Agreement. 
  

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 IX. DISABILITY 
  
 In the event that there is a finding of any qualified period of disability for the Executive, the Bank will deposit into the Contingent Disability Trust
for Executive (hereafter “Trust”) an amount equal to the accrued liability retirement account established on the Executive’s behalf pursuant to this Agreement. No other benefits will be owed to the Executive under this Agreement
during the Period of Disability. 
  
 An Executive is considered
disabled if he or she is: [1] unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of
not less than twelve (12) months; or [2] by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving
income replacement benefits for a period of not less than three (3) months under an accident and health plan covering the Executive of the Bank. If there is a dispute regarding whether the Executive is disabled, such dispute shall be resolved by a
physician mutually selected by the Bank and the Executive and such resolution shall be binding upon all parties to this Agreement. 
  
 If the Executive is under a Period of Disability on the date the Executive reaches Normal Retirement Age, this agreement shall automatically terminate and
the Executive shall not be entitled to any further benefits under this Agreement. 
  
 If the Period of Disability ends prior to Normal Retirement Age and the Executive returns to active employment with the Bank, the Bank will pay the Executive a reduced retirement benefit amount. The retirement benefit
amount shall be reduced by the thirteen (13) year annual annuity that would be payable from the Trust assuming the trust assets earned on a net of four percent (4%) annually starting from the date of the existence of said Trust. 
  
 X. TERMINATION OF EMPLOYMENT 
  
 Subject to Subparagraph IV (E), in the event that the employment of the
Executive shall terminate prior to Normal Retirement Age, as provided in Subparagraph IV (B), by the Executive’s voluntary action, or by the Executive’s discharge by the Bank without cause, then this Agreement shall terminate upon the date
of such termination of employment and the Bank shall pay to the Executive an amount of money equal to balance of the Executive’s accrued liability retirement account on the date of said termination. This compensation shall be paid in a lump sum
thirty (30) days following Normal Retirement Age. Such balance shall accrue interest on a monthly basis equal to the average prior years’ tax equivalent yield for the Bank’s cumulative Bank owned Life Insurance policies until said payment
is made. 
  

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 If the Executive is a key employee (as defined by the Internal Revenue Service) of a publicly traded bank
at the time of termination, any such benefit payment shall be withheld for six (6) months, from such termination. 
  
 In the event the Executive’s death should occur after such termination but prior to the payment provided for in this Paragraph X, the lump sum shall
be paid to such individual or individuals as the Executive may have designated in writing and filed with the Bank. In the absence of any effective beneficiary designation, any such amount shall be payable to the duly qualified executor or
administrator of the Executive’s estate. Said payment due hereunder shall be made the first day of the second month following the decease of the Executive. 
  
 In the event the Executive shall be discharged for cause at any time in accordance with Subparagraph IV (E), this Agreement
shall terminate and all benefits provided herein shall be forfeited. 
  
 XI.
CHANGE OF CONTROL 
  
 If the Executive subsequently suffers a
Termination of Employment (voluntarily or involuntarily), except for cause, six (6) months prior to or anytime subsequent to a Change of Control as defined in Subparagraph IV (F), then the Executive shall receive the benefits in Paragraph V herein
upon attaining Normal Retirement Age (Subparagraph IV [B]), as if the Executive had been continuously employed by the Bank until the Executive’s Normal Retirement Age. 
  
 XII. RESTRICTIONS ON FUNDING 
  
 The Bank shall have no obligation to set aside, earmark or entrust any fund or money with which to pay its obligations under this Executive Plan. The
Executive, their beneficiary(ies), or any successor in interest shall be and remain simply a general creditor of the Bank in the same manner as any other creditor having a general claim for matured and unpaid compensation. 
  
 The Bank reserves the absolute right, at its sole discretion, to either fund
the obligations undertaken by this Executive Plan or to refrain from funding the same and to determine the extent, nature and method of such funding. Should the Bank elect to fund this Executive Plan, in whole or in part, through the purchase of
life insurance, mutual funds, disability policies or annuities, the Bank reserves the absolute right, in its sole discretion, to terminate such funding at any time, in whole or in part. At no time shall any Executive be deemed to have any lien,
right, title or interest in any specific funding investment or assets of the Bank. 
  
 If the Bank elects to invest in a life insurance, disability or annuity policy on the life of the Executive, then the Executive shall assist the Bank by freely submitting to a physical exam and supplying such
additional information necessary to obtain such insurance or annuities. 
  

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 XIII. MISCELLANEOUS 
  

	 	A.	Alienability and Assignment Prohibition: 

  
 Neither the Executive, nor the Executive’s surviving spouse, nor any other beneficiary(ies) under this Executive Plan shall have any power or right
to transfer, assign, anticipate, hypothecate, mortgage, commute, modify or otherwise encumber in advance any of the benefits payable hereunder nor shall any of said benefits be subject to seizure for the payment of any debts, judgments, alimony or
separate maintenance owed by the Executive or the Executive’s beneficiary(ies), nor be transferable by operation of law in the event of bankruptcy, insolvency or otherwise. In the event the Executive or any beneficiary attempts assignment,
commutation, hypothecation, transfer or disposal of the benefits hereunder, the Bank’s liabilities shall forthwith cease and terminate. 
  

	 	B.	Binding Obligation of the Bank and any Successor in Interest: 

  
 The Bank shall not merge or consolidate into or with another bank or sell substantially all of its assets to another bank, firm or person until such bank,
firm or person expressly agree, in writing, to assume and discharge the duties and obligations of the Bank under this Executive Plan. This Executive Plan shall be binding upon the parties hereto, their successors, beneficiaries, heirs and personal
representatives. 
  

	 	C.	Amendment or Revocation: 

  
 Subject to Paragraph XIV, it is agreed by and between the parties hereto that, during the lifetime of the Executive, this Executive Plan may be amended or
revoked at any time or times, in whole or in part, by the mutual written consent of the Executive and the Bank. 
  

	 	D.	Gender: 

  
 Whenever in this Executive Plan words are used in the masculine or neuter gender, they shall be read and construed as in the masculine, feminine or neuter
gender, whenever they should so apply. 
  

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	 	E.	Effect on Other Bank Benefit Plans: 

  
 Nothing contained in this Executive Plan shall affect the right of the Executive to participate in or be covered by any qualified or non-qualified
pension, profit-sharing, group, bonus or other supplemental compensation or fringe benefit plan constituting a part of the Bank’s existing or future compensation structure. 
  

	 	F.	Headings: 

  
 Headings and subheadings in this Executive Plan are inserted for reference and convenience only and shall not be deemed a part of this Executive Plan.

  

	 	G.	Applicable Law: 

  
 The laws of the State of North Carolina shall govern the validity and interpretation of this Agreement. 
  

	 	H.	Partial Invalidity: 

  
 If any term, provision, covenant, or condition of this Executive Plan is determined by an arbitrator or a court, as the case may be, to be invalid, void,
or unenforceable, such determination shall not render any other term, provision, covenant, or condition invalid, void, or unenforceable, and the Executive Plan shall remain in full force and effect notwithstanding such partial invalidity.

  

	 	I.	Not a Contract of Employment: 

  
 This Agreement shall not be deemed to constitute a contract of employment between the parties hereto, nor shall any provision hereof restrict the right of
the Bank to discharge the Executive, or restrict the right of the Executive to terminate employment. 
  
 XIV. ADMINISTRATIVE AND CLAIMS PROVISION 
  

	 	A.	Named Fiduciary and Plan Administrator: 

  
 The “Named Fiduciary and Plan Administrator” of this Executive Plan shall be Surrey Bank & Trust. As Named Fiduciary and Plan Administrator,
the Bank shall be responsible for the management, control and administration of the Executive Plan. The Named Fiduciary may delegate to others certain aspects of the management and operation responsibilities of the Executive Plan including the
employment of advisors and the delegation of ministerial duties to qualified individuals. 
  

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	 	B.	Claims Procedure: 

  
 In the event a dispute arises over benefits under this Executive Plan and benefits are not paid to the Executive (or to the Executive’s
beneficiary(ies) in the case of the Executive’s death) and such claimants feel they are entitled to receive such benefits, then a written claim must be made to the Named Fiduciary and Plan Administrator named above within forty-five (45) days
from the date payments are refused. The Named Fiduciary and Plan Administrator shall review the written claim and if the claim is denied, in whole or in part, they shall provide in writing within forty-five (45) days of receipt of such claim the
specific reasons for such denial, reference to the provisions of this Executive Plan upon which the denial is based and any additional material or information necessary to perfect the claim. Such written notice shall further indicate the additional
steps to be taken by claimants if a further review of the claim denial is desired. A claim shall be deemed denied if the Named Fiduciary and Plan Administrator fail to take any action within the aforesaid forty-five (45) day period. 
  
 If claimants desire a second review they shall notify the Named Fiduciary
and Plan Administrator in writing within forty-five (45) days of the first claim denial. Claimants may review this Executive Plan or any documents relating thereto and submit any written issues and comments it may feel appropriate. In their sole
discretion, the Named Fiduciary and Plan Administrator shall then review the second claim and provide a written decision within forty-five (45) days of receipt of such claim. This decision shall likewise state the specific reasons for the decision
and shall include reference to specific provisions of the Plan Agreement upon which the decision is based. 
  

	 	C.	Arbitration: 

  
 If claimants continue to dispute the benefit denial based upon completed performance of this Executive Plan or the meaning and effect of the terms and
conditions thereof, then claimants may submit the dispute to an Arbitrator for final arbitration. The Arbitrator shall be selected by mutual agreement of the Bank and the claimants. The Arbitrator shall operate under any generally recognized set of
arbitration rules. The parties hereto agree that they and their heirs, personal representatives, successors and assigns shall be bound by the decision of such Arbitrator with respect to any controversy properly submitted to it for determination.

  

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 Where a dispute arises as to the Bank’s discharge of the Executive “for cause,” such
dispute shall likewise be submitted to arbitration as above described and the parties hereto agree to be bound by the decision thereunder. 
  
 In any event of litigation or arbitration, should the Executive be successful, the Bank will cover any and all legal fees. 
  
 XV. TERMINATION OR MODIFICATION OF AGREEMENT BY REASON OF CHANGES IN THE LAW, RULES OR
REGULATIONS 
  
 The Bank is entering into this Agreement upon
the assumption that certain existing tax laws, rules and regulations will continue in effect in their current form. If any said assumptions should change and said change has a detrimental effect on this Executive Plan, then the Bank reserves the
right to terminate or modify this Agreement accordingly. Upon a Change of Control (Subparagraph IV [F]), this paragraph shall become null and void effective immediately upon said Change of Control. 
  
 IN WITNESS WHEREOF, the parties hereto acknowledge that each has
carefully read this Agreement and executed the original thereof on the first day set forth hereinabove, and that, upon execution, each has received a conforming copy. 
  

							
	 	 	SURREY BANK & TRUST
	 	 	Mount Airy, North Carolina
			
	 /s/ Brenda J. Harding

	 	By:	 	 /s/ Mark H.
Towe                                Sr. Vice Pres

	Witness	 	 	 	(Bank Officer other than Insured)                 Title
		
	 /s/ Pedro A. Pequeno, II

	 	 /s/ Edward C. Ashby, III

	Witness	 	Edward C. Ashby, III

  

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