Document:

Revolving Credit Note

 Exhibit 10.2 
 REVOLVING CREDIT NOTE 
  

			
	$35,000,000	  	May 26, 2011            

FOR VALUE RECEIVED, KENSEY NASH CORPORATION, a Delaware corporation (the “Borrower”), hereby promises to pay to the order of
WELLS FARGO BANK, NATIONAL ASSOCIATION (the “Lender”) on the Revolving Credit Termination Date, the principal amount of THIRTY FIVE MILLION DOLLARS ($35,000,000) or, if less, the aggregate outstanding principal under the Revolving Credit
Facility extended under the Loan and Agency Agreement of even date herewith (as such agreement may be amended or modified, the “Loan Agreement”) by and among Borrower, the Lender and the other banks listed on the signature pages thereof
and Wells Fargo Bank, National Association, its successors and assigns, as Administrative Agent (the “Administrative Agent”). Terms capitalized but not defined herein shall have the meanings given to them respectively in the Loan
Agreement. This Note is one of the Revolving Credit Notes referred to in the Loan Agreement, and reference is made to the Loan Agreement for a statement of the terms and conditions under which the loans evidenced hereby have been made, are secured,
and may be prepaid or accelerated. 
 Until maturity (whether by acceleration or otherwise), or the occurrence of an Event of
Default, interest shall accrue on the outstanding principal balance hereof at the rate or rates as set forth in the Loan Agreement. Subsequent to maturity or the occurrence of an Event of Default, interest shall accrue at the Default Rate. Accrued
interest shall be payable at the times provided for in the Loan Agreement and if not paid when due, shall be added to the principal. 
 All amounts payable by the Borrower to the Lender hereunder shall be paid directly to the Administrative Agent at Suburban Philadelphia RCBO, 2240 Butler Pike, Plymouth Meeting, PA 19462 (or at such other
address which the Administrative Agent shall give notice to the Borrower in accordance with the Loan Agreement) in immediately available funds. 
 The Borrower hereby waives the requirements of demand, presentment, protest, notice of protest and dishonor and all other demands or notices of any kind in connection with the delivery, acceptance,
performance, default, dishonor or enforcement of this Note. 
 The construction, interpretation and enforcement of this Note
shall be governed by the internal laws of the State of New York. 

 IN WITNESS WHEREOF, and intending to be legally bound hereby, the Borrower has caused this
Note to be executed by its duly authorized officer as of the day and year first above written. 
  

			
	 KENSEY NASH CORPORATION,
 a Delaware corporation

		
	By:	 	 /s/ Michael Celano

	Name:	 	 Michael Celano

	Title:	 	 Chief Financial OfficerStock Certificate

 Exhibit 4.1 

 

			
	 COMMON STOCK
 PAR VALUE
$0.01
	  	 COMMON STOCK
 SEE REVERSE FOR CERTAIN DEFINITIONS
 CUSIP
_____________________

 ASB BANCORP, INC. 

INCORPORATED UNDER THE LAWS OF THE STATE OF NORTH CAROLINA 
 THIS CERTIFIES THAT 
 SPECIMEN 

is the owner of: 
 FULLY PAID
AND NONASSESSABLE SHARES OF COMMON STOCK, $0.01 PAR VALUE PER SHARE, OF 
 ASB BANCORP, INC. 

The shares represented by this certificate are transferable only on the stock transfer books of the Corporation by the holder of record
hereof, or by his duly authorized attorney or legal representative, upon the surrender of this certificate properly endorsed. This certificate and the shares represented hereby are issued and shall be held subject to all the provisions of the
Articles of Incorporation of the Corporation and any amendments thereto (copies of which are on file with the Transfer Agent and registrar), to all of which provisions the holder by acceptance hereof, assents. 

This certificate is not valid unless countersigned and registered by the Transfer Agent and Registrar. The shares represented by this
certificate are not insured by the Federal Deposit Insurance Corporation or any other government agency. 
 IN WITNESS
THEREOF, ASB Bancorp, Inc. has caused this certificate to be executed by the facsimile signatures of its duly authorized officers and has caused a facsimile of its corporate seal to be hereunto affixed. 

									
		 		 	
					
	Dated:	 	 	 		 	[SEAL]	 	
		 		 		 		 	
					
		 	 	 		 		 	 
		 	President and Chief Executive Officer	 		 		 	Corporate Secretary

 ASB Bancorp, Inc. 

The shares represented by this certificate are subject to a limitation contained in the Articles of Incorporation to the effect that in
no event shall any record owner of any outstanding common stock which is beneficially owned, directly or indirectly, by a person who beneficially owns in excess of 10% of the outstanding shares of common stock (the “Limit”) be entitled or
permitted to any vote in respect of shares held in excess of the Limit. 
 The Board of Directors of the Corporation is
authorized by resolution(s), from time to time adopted, to provide for the issuance of serial preferred stock in series and to fix and state the voting powers, designations, preferences and relative, participating, optional, or other special rights
of the shares of each such series and the qualifications, limitations and restrictions thereof. The Corporation will furnish to any shareholder upon request and without charge a full description of each class of stock and any series thereof.

 The shares represented by this certificate may not be cumulatively voted on any matter. Pursuant to the Articles of
Incorporation, the affirmative vote of the holders of at least 80% of the voting stock of the Corporation, voting together as a single class, shall be required to approve certain business combinations and other transactions and to amend certain
provisions of the Articles of Incorporation. 
 The following abbreviations, when used in the inscription on the face of this certificate, shall
be construed as though they were written out in full according to applicable laws or regulations: 
  

			
	TEN COM - as tenants in common	  	UNIF GIFTS MIN ACT -__________ custodian __________
		  	                              
                         (Cust)
                         (Minor)
		  	
		  	
	TEN ENT - as tenants by the entireties	  	                              
                  under Uniform Gifts to Minors Act
		  	                              
                                ____________________
		  	                              
                                         
                     (State)
		  	
	JT TEN - as joint tenants with right	  	UNIF TRF MIN ACT -__________ custodian (until age ___)
	                 of survivorship and not as	  	                              
         __________ under Uniform Transfers
	                 tenants in common	  	                              
         to Minors Act ___________________
		  	                              
                                         
     (State)

 Additional abbreviations may also be used though not in the above list.

 For value received, __________ hereby sell, assign and transfer unto 
 PLEASE INSERT SOCIAL SECURITY OR OTHER 
     IDENTIFICATION NUMBER OF
ASSIGNEE 
  
  

Please print or typewrite name and address including postal zip code of assignee 
 _______________________________________________ shares of the common stock represented by the within certificate, and do hereby irrevocably constitute and appoint
____________________________________________________________________________ Attorney to transfer the said stock on the books of the within-named Corporation with full power of substitution in the premises. 

 

									
					
	DATED	 	 	 		 		 	 
		 		 		 		 	NOTICE: THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR WITHOUT ALTERATION OR ENLARGEMENT OR ANY
CHANGE WHATEVER.

  

			
	SIGNATURE GUARANTEED:    	 	 
		 	THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED
SIGNATURE GUARANTEE MEDALLION PROGRAM), PURSUANT TO S.E.C. RULE 17Ad-15ESOP

 Exhibit 10.1 
 FORM OF 
 ASHEVILLE SAVINGS BANK, S.S.B. 

EMPLOYEE STOCK OWNERSHIP PLAN 
 Effective January 1, 2011 

 Form of 
 Asheville Savings Bank, S.S.B. 
 Employee Stock Ownership Plan

 Certification 
 I, Suzanne S. DeFerie, President and Chief Executive Officer of Asheville Savings Bank, S.S.B. (the “Bank”), hereby certify that the attached Asheville Savings Bank, S.S.B. Employee Stock
Ownership Plan, effective as of January 1, 2011, was adopted at a duly held meeting of the Board of Directors of the Bank. 
  

									
	ATTEST:	 		 	Asheville Savings Bank, S.S.B.
				
	 	 		 	By:	 	 
		 		 		 		 	Suzanne S. DeFerie
				
	 	 		 		 	
	Date	 		 		 	

 Form of 
 Asheville Savings Bank, S.S.B. 
 Employee Stock Ownership Plan

 Table of Contents 
  

					
	 Section 1 - Introduction
	  	 	4	  
		
	 Section 2 - Definitions
	  	 	4	  
		
	 Section 3 - Eligibility and Participation
	  	 	14	  
		
	 Section 4 - Contributions
	  	 	16	  
		
	 Section 5 - Plan Accounting
	  	 	18	  
		
	 Section 6 - Vesting
	  	 	28	  
		
	 Section 7 - Distributions
	  	 	30	  
		
	 Section 8 - Voting of Company Stock and Tender Offers
	  	 	39	  
		
	 Section 9 - The Committee and Plan Administration
	  	 	40	  
		
	 Section 10 - Rules Governing Benefit Claims
	  	 	44	  
		
	 Section 11 - The Trust
	  	 	45	  
		
	 Section 12 - Adoption, Amendment and Termination
	  	 	46	  
		
	 Section 13 - General Provisions
	  	 	47	  
		
	 Section 14 - Top-Heavy Provisions
	  	 	49	  

 Asheville Savings Bank, S.S.B. 

Employee Stock Ownership Plan 
 Section 1 
 Introduction 

Section 1.01 Nature of the Plan. 
 Effective as of January 1, 2011 (the “Effective Date”), Asheville Savings Bank, S.S.B. (the “Bank”) hereby adopts the Asheville Savings Bank, S.S.B. Employee Stock Ownership Plan
(the “Plan”). The Plan enables Eligible Employees (as defined in Section 2.01(a) of the Plan) to acquire stock ownership interests in ASB Bancorp, Inc. (the “Company”), the holding company of the Bank. The Bank intends this
Plan to be a tax-qualified stock bonus plan under Section 401(a) of the Internal Revenue Code of 1986, as amended (the “Code”), and an employee stock ownership plan within the meaning of Section 407(d)(6) of the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”), and Sections 409 and 4975(e)(7) of the Code. The Plan is designed to invest primarily in the common stock of the Company, which stock constitutes “qualifying employer
securities” within the meaning of Section 407(d)(5) of ERISA and Sections 409(l) and 4975(e)(8) of the Code. Accordingly, the Plan and Trust Agreement (as defined in Section 2.01(mm) of the Plan) shall be interpreted and applied in a
manner consistent with the Bank’s intent for it to be a tax-qualified plan designed to invest primarily in qualifying employer securities. 

Section 1.02 Employers and Affiliates. 
 The Bank and each of its Affiliates (as defined in Section 2.01(c) of the Plan) which, with the consent of the Bank, adopt the Plan pursuant to the provisions of Section 12.01 of the Plan are
collectively referred to as the “Employers” and individually as an “Employer.” The Plan shall be treated as a single plan with respect to all participating Employers. No Employer is a Subchapter-S corporation as of the Effective
Date. 
 Section 2 
 Definitions 
 Section 2.01 Definitions. 

In this Plan, whenever the context so indicates, the singular or the plural number and the masculine or feminine gender shall be deemed to include the
other, the terms “he,” “his,” and “him,” shall refer to a Participant or Beneficiary, as the case may be, and, except as otherwise provided, or unless the context otherwise requires, the capitalized terms shall have the
following meanings: 
 (a) “Account” or “Accounts” mean a Participant’s or Beneficiary’s Company
Stock Account and/or his Other Investments Account, as the context so requires. 

  
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 (b) “Acquisition Loan” means a loan (or other extension of credit, including an installment
obligation to a “party in interest” (as defined in Section 3(14) of ERISA)) incurred by the Trustee in connection with the purchase of Company Stock. 
 (c) “Affiliate” means any corporation, trade or business, which, at the time of reference, is together with the Bank, a member of a controlled group of corporations, a group of trades or
businesses (whether or not incorporated) under common control, or an affiliated service group, as described in Sections 414(b), 414(c), and 414(m) of the Code, respectively, or any other organization treated as a single employer with the Bank under
Section 414(o) of the Code; provided, however, that, where the context so requires, the term “Affiliate” shall be construed to give full effect to the provisions of Sections 409(l)(4) and 415(h) of the Code. 

(d) “Bank” means Asheville Savings Bank, S.S.B., Asheville, North Carolina, and any entity which succeeds to the business of Asheville
Savings Bank, S.S.B. and which adopts this Plan in accordance with the provisions of Section 12.02 of the Plan or by written agreement assuming the obligations under the Plan. 
 (e) “Beneficiary” means the person(s) entitled to receive benefits under the Plan following a Participant’s death, pursuant to Section 7.03 of the Plan. 

(f) “Break in Service” means any Plan Year, in which an Employee has 500 or fewer Hours of Service. Solely for this purpose, an Employee
shall be considered employed for his normal hours of paid employment during a Recognized Absence (the Employee shall not be credited with more than 501 Hours of Service to avoid a Break in Service), unless he does not resume his Service at the end
of the Recognized Absence. Further, if an Employee is absent for any period (i) by reason of the Employee’s pregnancy, (ii) by reason of the birth of the Employee’s child, (iii) by reason of the placement of a child with the
Employee in connection with the Employee’s adoption of the child, or (iv) for purposes of caring for such child for a period beginning immediately after such birth or placement, the Employee shall be credited with the Hours of Service
which would normally have been credited but for such absence, up to a maximum of 501 Hours of Service. Hours of Service shall be credited only in the year in which the absence from work begins, if a Participant would be prevented from incurring a
one-year Break in Service in such year solely because the period of absence is treated as Hours of Service, or in any other case, in the immediately following year. 
 (g) “Change in Control” means any one of the following events occurs: 
  

	 	(i)	Merger: The Company or the Bank merges into or consolidates with another corporation, or merges another corporation into the Company or the Bank, and as a result
less than a majority of the combined voting power of the resulting corporation immediately after the merger or consolidation is held by persons who were stockholders of the Company or the Bank immediately before the merger or consolidation;

  
 5 

	 	(ii)	Acquisition of Significant Share Ownership: The Company files, or is required to file, a report on Schedule 13D or another form or schedule (other than Schedule
13G) required under Sections 13(d) or 14(d) of the Exchange Act, if the schedule discloses that the filing person or persons acting in concert has or have become the beneficial owner of twenty-five percent (25%) or more of a class of the
Company’s voting securities, but this clause (b) shall not apply to beneficial ownership of Company voting shares held in a fiduciary capacity by an entity of which the Company directly or indirectly beneficially owns fifty (50%) or
more of its outstanding voting securities; 

  

	 	(iii)	Change in Board Composition: During any period of two consecutive years, individuals who constitute the Company’s or the Bank’s board of directors at
the beginning of the two-year period cease for any reason to constitute at least a majority of the Bank’s or the Company’s board of directors; provided, however, that for purposes of this clause (iii), each director who is first elected by
the board of directors (or first nominated by the board of directors for election by the stockholders) by a vote of at least two-thirds (2/3) of the directors who were directors at the beginning of the two-year period shall be deemed to have
also been a director at the beginning of such period; or 

  

	 	(iv)	Sale of Assets: The Company or the Bank sells to a third party all or substantially all of its assets. 

(h) “Code” means the Internal Revenue Code of 1986, as amended. 
 (i) “Committee” means the individual(s) responsible for the administration of the Plan in accordance with Section 9 of the Plan. 

(j) “Company” means ASB Bancorp, Inc. and any entity which succeeds to the business of ASB Bancorp, Inc. 

(k) “Company Stock” means shares of the voting common stock or preferred stock, meeting the requirements of Section 409 of the Code
and Section 407(d)(5) of ERISA, issued by the Bank or its Affiliates. 
 (l) “Company Stock Account” means the account
established and maintained in the name of each Participant or Beneficiary to reflect his share of the Trust Fund invested in Company Stock. 

(m) “Compensation” means a Participant’s wages as defined in Section 3401(a) of the Code and all other payments of Compensation and
all other payments of compensation by the Employer (in the course of the Employer’s trade or business) for a Plan Year for which Employer is required to furnish the Participant a written statement under Sections 6041(d), 6051(a)(3) and 6052 of
the Code. Compensation must be determined without regard to any rules under Section 3401(a) of the Code that limit the remuneration included in wages based on the nature or location of the

  
 6 

 
employment or the services performed (such as the exception for agricultural labor in Section 3401(a)(2) of the Code). Compensation shall also include amounts not currently includible in
gross income by reason of the application of Sections 125 (cafeteria plan), 132(f)(4) (qualified transportation fringe), 402(e)(3) (401(k) plan), 402(h)(1)(B)(simplified employee pension plan), 414(h) (employer pickup contributions under a
governmental plan), 403(b) (tax sheltered annuity) or 457(b) (eligible deferred compensation plan) of the Code. 
 A Participant’s
Compensation shall not exceed the limit set forth in Section 401(a)(17) of the Code ($245,000 for the Plan Years beginning January 1, 2011). If the Plan Year for which a Participant’s Compensation is measured is less than twelve
(12) calendar months, then the amount of Compensation taken into account for such Plan Year shall be the adjusted amount for such Plan Year, as prescribed by the Secretary of the Treasury under Section 401(a)(17) of the Code, multiplied by
a fraction, the numerator of which is the number of months taken into account for such Plan Year and the denominator of which is twelve (12). In determining the dollar limitation hereunder, Compensation received from an Affiliate shall be recognized
as Compensation. 
 (n) “Disability” means a physical or mental impairment, certified by one or more physician(s) designated by
the Committee, which prevents him from doing any substantial gainful activity for which he is fitted by education, training or experience, and which is expected to last at least 12 months or to result in death. 

(o) “Effective Date” means January 1, 2011. 
 (p) “Eligible Employee” means any Employee who is not precluded from participating in the Plan by reason of the provisions of Section 3.02 of the Plan. 

(q) “Employee” means any individual who is or has been employed or self-employed by an Employer. “Employee” also means an
individual employed by a leasing organization who, pursuant to an agreement between an Employer and the leasing organization, has performed services for the Employer and any related persons (within the meaning of Section 414(n)(6) of the Code)
on a substantially full-time basis for more than one year, if such services are performed under the primary direction or control of the Employer. However, such a “leased employee” shall not be considered an Employee if (i) he
participates in a money purchase pension plan sponsored by the leasing organization which provides for immediate participation, immediate full vesting, and an annual contribution of at least 10 percent of the Employee’s Compensation, and
(ii) leased employees do not constitute more than 20 percent of the Employer’s total work force (including leased employees, but excluding Highly Compensated Employees and any other Employees who have not performed services for the
Employer on a substantially full-time basis for at least one year). 
 (r) “Employer” or “Employers” means the
Bank and its Affiliates, which adopt the Plan in accordance with the provisions of Section 12.01 of the Plan, and any entity which succeeds to the business of the Bank or its Affiliates and which adopts the Plan in accordance with the
provisions of Section 12.02 of the Plan or by written agreement assumes the obligations under the Plan. 

  
 7 

 (s) “Entry Date” means the first day of the month following the date the Employee satisfies
the eligibility requirements under Section 3.01 of the Plan. [CONFIRM] 
 (t) “ERISA” means the Employee Retirement
Income Security Act of 1974, as amended. 
 (u) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 (v) “Financed Shares” means shares of Company Stock acquired by the Trustee with the proceeds of an Acquisition Loan, which
shall constitute “qualifying employer securities” under Section 409(l) of the Code and any shares of Company Stock received upon conversion or exchange of such shares. 
 (w) “Highly Compensated Employee” means an Employee who, for a particular Plan Year, satisfies one of the following conditions: 

 

	 	(i)	was a “5-percent owner” (as defined in Section 414(q)(2) of the Code) during the year or the preceding year, or 

 

	 	(ii)	for the preceding year, had “compensation” (as defined in Section 414(q)(4) of the Code) from the Bank and its Affiliates exceeding the limit in
Section 414(q)(1) of the Code ($110,000 for Plan Years beginning January 1, 2010). The applicable year for which a determination is being made is called a “determination year” and the preceding 12-month period is called
“look-back year.” 

 (x) “Hours of Service” means hours to be credited to an Employee under the
following rules: 
  

	 	(i)	Each hour for which an Employee is paid or is entitled to be paid for services to an Employer is an Hour of Service. 

 

	 	(ii)	Each hour for which an Employee is directly or indirectly paid or is entitled to be paid for a period of vacation, holidays, illness, disability, lay-off, jury duty,
temporary military duty, or leave of absence is an Hour of Service. However, except as otherwise specifically provided, no more than 501 Hours of Service shall be credited for any single continuous period which an Employee performs no duties. No
more than 501 Hours of Service will be credited under this paragraph for any single continuous period (whether or not such period occurs in a single computation period). Further, no Hours of Service shall be credited on account of payments made
solely under a plan maintained to comply with worker’s compensation, unemployment compensation, or disability insurance laws, or to reimburse an Employee for medical expenses. 

  
 8 

	 	(iii)	Each hour for which back pay (ignoring any mitigation of damages) is either awarded or agreed to by an Employer is an Hour of Service. However, no more than 501 Hours
of Service shall be credited for any single continuous period during which an Employee would not have performed any duties. The same Hours of Service will not be credited both under paragraph (i) or (ii) as the case may be, and under this
paragraph. These hours will be credited to the employee for the computation period or periods to which the award or agreement pertains rather than the computation period in which the award agreement or payment is made. 

 

	 	(iv)	Hours of Service shall be credited in any one period only under one of the foregoing paragraphs (i), (ii) and (iii); an Employee may not get double credit for the
same period. 

  

	 	(v)	If an Employer finds it impractical to count the actual Hours of Service for any class or group of non-hourly Employees, each Employee in that class or group shall be
credited with 90 Hours of Service for each bi-weekly pay period in which he has at least one Hour of Service. However, an Employee shall be credited only for his normal working hours during a paid absence. 

 

	 	(vi)	Hours of Service to be credited on account of a payment to an Employee (including back pay) shall be recorded in the period of Service for which the payment was made.
If the period overlaps two or more Plan Years, the Hours of Service credit shall be allocated in proportion to the respective portions of the period included in the several Plan Years. However, in the case of periods of 31 days or less, the
Committee may apply a uniform policy of crediting the Hours of Service to either the first Plan Year or the second. 

  

	 	(vii)	In all respects an Employee’s Hours of Service shall be counted as required by Section 2530.200b-2(b) and (c) of the Department of Labor’s
regulations under Title I of ERISA. 

 (y) “Loan Suspense Account” means that portion Trust Fund consisting of
Company Stock acquired with an Acquisition Loan which has not yet been allocated to the Participants’ Accounts. 
 (z) “Normal
Retirement Age” means the date the Employee attains age sixty-five (65). 
 (aa) “Normal Retirement Date” means the
first day of the month coincident with or next following the Participant’s attainment of Normal Retirement Age. 

  
 9 

 (bb) “Other Investments Account” means the account established and maintained in the name
of each Participant or Beneficiary to reflect his share of the Trust Fund, other than Company Stock. 
 (cc) “Participant”
means any active Employee who has become a participant in accordance with Section 3.01 of the Plan or any other person with an Account balance under the Plan. 
 (dd) “Plan” means this Asheville Savings Bank, S.S.B. Employee Stock Ownership Plan, as amended from time to time. 
 (ee) “Plan Year” means the calendar year. 
 (ff) “Postponed Retirement
Date” means the first day of the month coincident with or next following a Participant’s date of actual retirement which occurs after his Normal Retirement Date. 
 (gg) “Recognized Absence” means a period for which: 
  

	 	(i)	an Employer grants an Employee a leave of absence for a limited period of time, but only if an Employer grants such leaves of absence on a nondiscriminatory basis to
all Eligible Employees; or 

  

	 	(ii)	an Employee is temporarily laid off by an Employer because of a change in the business conditions of the Employer; or 

 

	 	(iii)	an Employee is on active military duty, but only to the extent that his employment rights are protected by the Military Selective Service Act of 1967 (38 U.S.C. sec.
2021). 

 (hh) “Reemployment After a Period of Uniformed Service” means: 

 

	 	(i)	that an Employee returned to employment with a participating Employer, within the time frame set forth in subparagraph (ii) below, after a Period of Uniformed
Service (that is, the period of time in which an Employee serves in the Uniformed Services) and the following rules corresponding to provisions of the Uniformed Services Employment and Reemployment Rights Act of 1994 (“USERRA”) apply:
(1) he gives sufficient notice of leave to the Employer prior to commencing a Period of Uniformed Service, or is excused from providing such notice; (2) his employment with the Employer prior to a Period of Uniformed Service was not of a
brief, non-recurrent nature that would preclude a reasonable expectation that the employment would continue indefinitely or for a significant period; (3) the Employer’s circumstances have not changed so that reemployment is unreasonable or
an undue hardship to the Employer; and (4) the applicable cumulative Periods of Uniformed Service under USERRA equals five years or less, unless service in the Uniformed Services: 

  
 10 

	 	(A)	in excess of five years is required to complete an initial Period of Uniformed Service; 

 

	 	(B)	prevents the Participant from obtaining orders releasing him or her from such Period of Uniformed Service prior to the expiration of a five-year period (through no
fault of the Participant); 

  

	 	(C)	is required in the National Guard for drill and instruction, field exercises or active duty training, or to fulfill necessary additional training, or to fulfill
necessary additional training requirements certified in writing by the Secretary of the branch of Uniformed Services concerned; or 

  

	 	(D)	for a Participant is: 

  

	 	1.	required other than for training under any provisions of law during a war or national agency declared by the President or Congress; 

 

	 	2.	required (other than for training) in support of an operational mission for which personnel have been ordered to active duty other than during war or national
emergency; 

  

	 	3.	required in support of a critical mission or requirement of the Uniformed Services; or 

 

	 	4.	the result of being called into service as a member of the National Guard by the President in the case of rebellion or danger of rebellion against the authority of the
United States Government or if the President is unable to execute the laws of the United States with the regular forces. 

  

	 	(ii)	The applicable statutory time frames within which an Employee must report to a Employer after a Period of Uniformed Service are as follows: 

 

	 	(A)	If the Period of Uniformed Service was less than 31 days, 

  

	 	1.	not later than the beginning of the first full regularly scheduled work period on the first full calendar day following the completion of the Period of Uniformed
Service and the expiration of eight hours after a period of time allowing for the safe transportation of the Employee from the place of service in the Uniformed Services to the Employee’s residence; or 

  
 11 

	 	2.	as soon as possible after the expiration of the eight-hour period of time referred to in clause (ii)(A)1, if reporting within the period referred to in such clause is
impossible or unreasonable through no fault of the Employee. 

  

	 	(B)	In the case of an Employee whose Period of Uniformed Service was for more than 30 days but less than 181 days, by submitting an application for reemployment with a
participating Employer not later than 14 days after the completion of the Period of Uniformed Service or, if submitting such application within such period is impossible or unreasonable through no fault of the Employee, the next first full calendar
day when submission of such application becomes reasonable. 

  

	 	(C)	In the case of an Employee whose Period of Uniformed Service was for more than 180 days, by submitting an application for reemployment with a participating Employer not
later than 90 days after the completion of the Period of Uniformed Service. 

  

	 	(D)	In the case of an Employee who is hospitalized for, or convalescing from, an illness or injury related to the Period of Uniformed Service the Employee shall apply for
reemployment with a Employer at the end of the period that is necessary for the Employee to recover. Such period of recovery shall not exceed two years, unless circumstances beyond the Employee’s control make reporting as above unreasonable or
impossible. 

  

	 	(iii)	Notwithstanding subparagraph (i), Reemployment After a Period of Uniformed Service terminates upon the occurrence of any of the following: 

 

	 	(A)	a dishonorable or bad conduct discharge from the Uniformed Services; 

  

	 	(B)	any other discharge from the Uniformed Services under circumstances other than an honorable condition; 

 

	 	(C)	a discharge of a commissioned officer from the Uniformed Services by court martial, by commutation of sentence by court martial, or, in time of war, by the President;
or 

  

	 	(D)	a demotion of a commissioned officer in the Uniformed Services for absence without authorized leave of at least 3 months confinement under a sentence by court martial,
or confinement in a federal or state penitentiary after being found guilty of a crime under a final sentence. 

  
 12 

 (ii) “Retirement Date” means a Participant’s Normal Retirement Date or Postponed
Retirement Date, whichever is applicable. 
 (jj) “Service” means an Employee’s period(s) of employment or self-employment
with an Employer, excluding for initial eligibility purposes any period in which the individual was a nonresident alien and did not receive from an Employer any earned income which constituted income from sources within the United States. An
Employee’s Service shall include any Service which constitutes Service with a predecessor Employer within the meaning of Section 414(a) of the Code, provided, however, that Service with an acquired entity shall not be considered Service
under the Plan unless required by applicable law or agreed to by the parties to such transaction. An Employee’s Service shall also include any Service with an entity which is not an Employer, but only either (i) in which the other entity
is a member of a controlled group of corporations or is under common control with other trades and businesses within the meaning of Sections 414(b) or 414(c) of the Code, and a member of the controlled group or one of the trades and businesses
is an Employer, (ii) in which the other entity is a member of an affiliated service group within the meaning of Section 414(m) of the Code, and a member of the affiliated service group is an Employer, or (iii) all Employers aggregated
with the Employer under Section 414(o) of the Code (but not until the Proposed Regulations under Section 414(o) become effective). Notwithstanding any provision of this Plan to the contrary, contributions, benefits and service credit with
respect to qualified military service will be provided in accordance with Section 414(u) of the Code. 
 (kk) “Treasury
Regulations” means the regulations promulgated by the Department of Treasury under the Code. 
 (ll) “Trust” means the
Asheville Savings Bank, S.S.B. Employee Stock Ownership Plan Trust created in connection with the establishment of the Plan. 
 (mm)
“Trust Agreement” means the trust agreement establishing the Trust. 
 (nn) “Trust Fund” means the assets held
in the Trust for the benefit of Participants and their Beneficiaries. 
 (oo) “Trustee” means the trustee or trustees from time
to time in office under the Trust Agreement. 
 (pp) “Uniformed Service” means the performance of duty on a voluntary or
involuntary basis in the uniformed service of the United States, including the U.S. Public Health Services, under competent authority and includes active duty, active duty for training, initial activity duty for training, inactive duty training,
full-time National Guard duty, and the period for which a person is absent from a position of employment for purposes of an examination to determine the fitness of the person to perform any such duty. 

  
 13 

 (qq) “Valuation Date” means the last day of the Plan Year and each other date as of which
the Committee shall determine the investment experience of the Trust Fund and adjust the Participants’ Accounts accordingly. 
 (rr)
“Valuation Period” means the period following a Valuation Date and ending with the next Valuation Date. 
 (ss) “Year
of Service” means any 12-consecutive month period in which an Employee completes at least 1,000 Hours of Service. 

Section 3 
 Eligibility and Participation 
 Section 3.01 Initial Participation.

 (a) All Eligible Employees on the closing date of the Bank’s mutual to stock conversion who are age 21 or older shall enter the Plan
and become Participants as of the later of (i) the Effective Date or (ii) the Eligible Employee’s date of hire. 
 (b) An
Eligible Employee who is first employed by an Employer after the closing date of the Bank’s mutual to stock conversion shall be a Participant on the Entry Date following their attainment of age 21 and one year of service. 

Section 3.02 Certain Employees Ineligible. 
 The following Employees are ineligible to participate in the Plan: 
 (a) Employees covered by a
collective bargaining agreement between the Employer and the Employee’s collective bargaining representative if: 
  

	 	(i)	retirement benefits have been the subject of good faith bargaining between the Employer and the representative, and 

 

	 	(ii)	the collective bargaining agreement does not expressly provide that Employees of such unit be covered under the Plan; 

(b) Leased Employees; 
 (c) Employees who are
nonresident aliens and who receive no earned income from an Employer which constitutes income from sources within the United States; and 
 (d)
Employees of an Affiliate that has not adopted the Plan pursuant to Sections 12.01 or 12.02 of the Plan. 
 (e) Seasonal Employees. 

  
 14 

 (f) Peak Employees. 
 (g) Temporary Employees. 
 Section 3.03 Transfer to and from Eligible Employment.

 (a) If an Employee ineligible to participate in the Plan by reason of Section 3.02 of the Plan transfers to employment as an Eligible
Employee, he shall enter the Plan as of the later of: 
  

	 	(i)	the first Entry Date after the date of transfer, or 

  

	 	(ii)	the first Entry Date on which he could have become a Participant pursuant to Section 3.01 of the Plan if his prior employment with the Bank or Affiliate had been
as an Eligible Employee. 

 (b) If a Participant transfers to a position of employment that is not eligible to participate in the
Plan by reason of Section 3.02 of the Plan, he shall cease active participation in the Plan as of the date of such transfer and his transfer shall be treated for all purposes of the Plan as any other termination of Service. 

Section 3.04 Participation After Reemployment. 
 (a) Any Employee re-entering Service with an Employer after a Break in Service who has never satisfied the eligibility requirements of Section 3.01(a) of the Plan shall not receive credit for prior
Service with an Employer and shall be required to meet the eligibility requirements of Section 3.01(a) of the Plan before becoming a Participant. 
 (b) An Employee who has satisfied the eligibility requirements of Section 3.01(a) of the Plan but who terminates Service prior to entering the Plan and becoming a Participant in accordance with
Section 3.01(b) of the Plan will become a Participant on the later of: 
  

	 	(i)	the first Entry Date on which he would have entered the Plan had he not terminated Service, or 

 

	 	(ii)	the date he re-commences Service. 

 (c) A
Participant whose Service terminates will re-enter the Plan as a Participant on the date he re-commences Service. 
 Section 3.05
Participation Not Guarantee of Employment. 
 Participation in the Plan does not constitute a guarantee or contract of employment and
will not give any Employee the right to be retained in the employ of the Bank or any of its Affiliates nor any right or claim to any benefit under the terms of the Plan unless such right or claim has specifically accrued under the Plan. 

  
 15 

 Section 3.06 Omission of Eligible Employee. 

If, in any Plan Year, any Eligible Employee who should be included as a Participant in the Plan is erroneously omitted and discovery of such omission is
not made until after a contribution by his Employer for the year has been made, the Employer shall make a subsequent contribution with respect to the omitted Eligible Employee in the amount which the said Employer would have contributed regardless
of whether or not it is deductible in whole or in part in any taxable year under applicable provisions of the Code. 
 Section 3.07
Inclusion of Ineligible Employee. 
 If, in any Plan Year, any person who should not have been included as a Participant in the Plan
is erroneously included and discovery of such incorrect inclusion is not made until after a contribution for the year has been made, the Employer shall not be entitled to recover the contribution made with respect to the ineligible person regardless
of whether or not a deduction is allowable with respect to such contribution. In such event, the amount contributed with respect to the ineligible person shall constitute a forfeiture for the fiscal year in which the discovery is made. Any person
who, after the close of a Plan Year, is retroactively treated by the Bank, an affiliated company or any other party as an Employee for such prior Plan Year shall not, for purposes of the Plan, be considered an Employee for such prior Plan Year
unless expressly so treated as such by the Bank. 
 Section 4 

Contributions 

Section 4.01 Employer Contributions. 
 (a) Discretionary Contributions. Each Plan Year, each Employer, in its discretion, may make a contribution to the Trust. Each Employer making a contribution for any Plan Year under this
Section 4.01(a) will contribute to the Trustee cash equal to, or Company Stock or other property having an aggregate fair market value equal to, such amount as the Board of Directors of the Employer shall determine by resolution.
Notwithstanding the Employer’s discretion with respect to the medium of contribution, an Employer shall not make a contribution in any medium which would make such contribution a prohibited transaction (for which no exemption is provided) under
Section 406 of ERISA or Section 4975 of the Code. Upon a Participant’s Reemployment After a Period of Uniformed Service, the Employer shall make an additional contribution on behalf of such Participant that would have been made on his
or her behalf during the Plan Year or Years corresponding to the Participant’s Period of Uniformed Service. 
 (b) Employer
Contributions for Acquisition Loans. Each Plan Year, the Employers shall, subject to the provisions of the Bank’s “Plan of Conversion” (as filed with the appropriate governmental agencies in connection with the Bank’s
conversion from a mutual to stock form of organization) and any related regulatory prohibitions, contribute an amount of cash sufficient to enable to the Trustee to discharge any indebtedness incurred with respect to an Acquisition Loan pursuant to
the terms of the Acquisition Loan. The 

  
 16 

 
Employers’ obligation to make contributions under this Section 4.01(b) shall be reduced to the extent of any investment earnings attributable to such contributions and any cash
dividends paid with respect to Company Stock held by the Trustee in the Loan Suspense Account. If there is more than one Acquisition Loan, the Employers shall designate the one to which any contribution pursuant to this Section 4.01(b) is to be
applied. 
 Section 4.02 Limitations on Contributions. 
 In no event shall an Employer’s contribution(s) made under Section 4.01 of the Plan for any Plan Year exceed the lesser of: 
 (a) The maximum amount deductible under Section 404 of the Code by that Employer as an expense for Federal income tax purposes; and 
 (b) The maximum amount which can be credited for that Plan Year in accordance with the allocation limitation provisions of Section 5.05 of the Plan. 

Section 4.03 Acquisition Loans. 
 The Trustee may incur Acquisition Loans from time to time to finance the acquisition of Company Stock for the Trust or to repay a prior Acquisition Loan. An Acquisition Loan shall be for a specific term,
shall bear a reasonable rate of interest, and shall not be payable on demand except in the event of default, and shall be primarily for the benefit of Participants and Beneficiaries of the Plan. An Acquisition Loan may be secured by a collateral
pledge of the Financed Shares so acquired and any other Plan assets which are permissible security within the provisions of Section 54.4975-7(b) of the Treasury Regulations. No other assets of the Plan or Trust may be pledged as collateral for
an Acquisition Loan, and no lender shall have recourse against any other Trust assets. Any pledge of Financed Shares must provide for the release of shares so pledged on a basis equal to the principal and interest (or if the requirements of
Section 54.4975-7(b)(8)(ii) of the Treasury Regulations are met and the Employer so elects, principal payments only), paid by the Trustee on the Acquisition Loan. The released Financed Shares shall be allocated by Participants’ Accounts in
accordance with the provisions of Sections 5.04 or 5.08 of the Plan, whichever is applicable. Payment of principal and interest on any Acquisition Loan shall be made by the Trustee only from the Employer contributions paid in cash to enable the
Trustee to repay such loan in accordance with Section 4.01(b) of the Plan, from earnings attributable to such contributions, and any cash dividends received by the Trustee on Financed Shares acquired with the proceeds of the Acquisition Loan
(including contributions, earnings and dividends received during or prior to the year of repayment less such payments in prior years), whether or not allocated. Financed Shares shall initially be credited to the Loan Suspense Account and shall be
transferred for allocation to the Company Stock Account of Participants only as payments of principal and interest (or, if the requirements of Section 54.4975-7(b)(8)(ii) of the Treasury Regulations are met and the Employer so elects, principal
payments only), on the Acquisition Loan are made by the Trustee. The number of Financed Shares to be released from the Loan Suspense Account for allocation to Participants’ Company Stock Account for each Plan

  
 17 

 
Year shall be based on the ratio that the payments of principal and interest (or, if the requirements of Section 54.4975-7(b)(8)(ii) of the Treasury Regulations are met and the Employer so
elects, principal payments only), on the Acquisition Loan for that Plan Year bears to the sum of the payments of principal and interest on the Acquisition Loan for that Plan Year plus the total remaining payment of principal and interest projected
(or, if the requirements of Section 54.4975-7(b)(8)(ii) of the Treasury Regulations are met and the Employer so elects, principal payments only), on the Acquisition Loan over the duration of the Acquisition Loan repayment period, subject to the
provisions of Section 5.05 of the Plan. 
 Section 4.04. Conditions as to Contributions. 

In addition to the provisions of Section 12.03 of the Plan for the return of an Employer’s contributions in connection with a failure of the
Plan to qualify initially under the Code, any amount contributed by an Employer due to a good faith mistake of fact, or based upon a good faith but erroneous determination of its deductibility under Section 404 of the Code, shall be returned to
the Employer within one year after the date on which the Employer originally made such contribution, or within one year after its nondeductibility has been finally determined. However, the amount to be returned shall be reduced to take account for
any adverse investment experience within the Trust in order that the balance credited to each Participant’s Accounts is not less that it would have been if the contribution had never been made by the Employer. 

Section 4.05 Employee Contributions. 
 Employee contributions are neither required nor permitted under the Plan. 
 Section 4.06
Rollover Contributions. 
 Rollover contributions of assets from other tax-qualified retirement plans are not permitted under the
Plan. 
 Section 4.07 Trustee-to-Trustee Transfers. 
 Trustee-to-trustee transfer of assets from other tax-qualified retirement plans are not permitted under the Plan. 
 Section 5 
 Plan Accounting 

Section 5.01 Accounting for Allocations. 
 The Committee shall establish the Accounts (and sub-accounts, if deemed necessary) for each Participant, and the accounting procedures for the purpose of making the allocations to the Participants’
Accounts provided for in this Section 5. The Committee shall maintain adequate records of the cost basis of shares of Company Stock allocated to each 

  
 18 

 
Participant’s Company Stock Account. The Committee also shall keep separate records of Financed Shares attributable to each Acquisition Loan and of contributions made by the Employers (and
any earnings thereon) made for the purpose of enabling the Trustee to repay any Acquisition Loan. From time to time, the Committee may modify its accounting procedures for the purpose of achieving equitable and nondiscriminatory allocations among
the Accounts of Participants, in accordance with the provisions of this Section 5 and the applicable requirements of the Code and ERISA. In accordance with Section 9 of the Plan, the Committee may delegate the responsibility for
maintaining Accounts and records. 
 Section 5.02 Maintenance of Participants’ Company Stock Accounts. 

As of each Valuation Date, the Committee shall adjust the Company Stock Account of each Participant to reflect activity during the Valuation Period as
follows: 
 (a) First, charge to each Participant’s Company Stock Account all distributions and payments made to him that have not been
previously charged; 
 (b) Next, credit to each Participant’s Company Stock Account the shares of Company Stock, if any, that have been
purchased with amounts from his Other Investments Account, and adjust such Other Investments Account in accordance with the provisions of Section 5.03 of the Plan; 
 (c) Next, credit to each Participant’s Company Stock Account the shares of Company Stock representing contributions made by the Employers in the form of Company Stock and the number of Financed
Shares released from the Loan Suspense Account under Section 4.03 of the Plan that are to be allocated and credited as of that date in accordance with the provisions of Section 5.04 of the Plan; and 

(d) Finally, credit to each Participant’s Company Stock Account the shares of Company Stock released from the Loan Suspense Account that are to be
allocated in accordance with the provisions of Section 5.08 of the Plan. 
 Section 5.03 Maintenance of Participants’ Other
Investments Accounts. 
 Except as otherwise provided for under Section 5.09 of the Plan, as of each Valuation Date, the Committee
shall adjust the Other Investments Account of each Participant to reflect activity during the Valuation Period as follows: 
 (a) First, charge
to each Participant’s Other Investments Account all distributions and payments made to him that have not previously been charged; 
 (b)
Next, if Company Stock is purchased with assets from a Participant’s Other Investments Account, the Participant’s Other Investments Account shall be charged accordingly; 

  
 19 

 (c) Next, subject to the dividend provisions of Section 5.08 of the Plan, credit to the Other
Investments Account of each Participant any cash dividends paid to the Trustee on shares of Company Stock held in that Participant’s Company Stock Account (as of the record date for such cash dividends) and dividends paid on shares of Company
Stock held in the Loan Suspense Account that have not been used to repay any Acquisition Loan. Cash dividends that have not been used to repay an Acquisition Loan and have been credited to a Participant’s Other Investments Account shall be
applied by the Trustee to purchase shares of Company Stock, which shares shall then be credited to the Company Stock Account of such Participant. The Participant’s Other Investments Account shall then be charged by the amount of cash used to
purchase such Company Stock or used to repay any Acquisition Loan. In addition, any earnings on: 
  

	 	(i)	Other Investments Accounts, including cash proceeds from the sale or disposition of Company Stock pursuant to Section 5.09 of the Plan, will be allocated to
Participants’ Other Investments Account, pro rata, based on such Other Investment Accounts balances as of the first day of the Valuation Period, and 

  

	 	(ii)	The Loan Suspense Account, other than dividends used to repay the Acquisition Loan, will be allocated to Participants’ Other Investments Accounts, pro rata, based
on their Other Investment Account Balances as of the first day of the Valuation Period; provided, however, that shares of Company Stock allocated pursuant to Section 5.09 of the Plan shall be allocated to the Participants’ Company Stock
Account in accordance with the provisions of the Section 5.09 of the Plan. 

 (d) Next, allocate and credit the Employer
contributions made pursuant to Section 4.01(b) of the Plan for the purpose of repaying any Acquisition Loan in accordance with Section 5.04 of the Plan. Such amount shall then be used to repay any Acquisition Loan and such
Participant’s Other Investments Account shall be charged accordingly; and 
 (e) Finally, allocate and credit the Employer contributions
(other than amounts contributed to repay an Acquisition Loan) that are made in cash (or property other than Company Stock) for the Plan Year to the Other Investments Account of each Participant in accordance with Section 5.04 of the Plan.

 Section 5.04 Allocation and Crediting of Employer Contributions. 
 (a) Except as otherwise provided for in Sections 5.08 and 5.09 of the Plan, as of the Valuation Date for each Plan Year: 
  

	 	(i)	 Company Stock released from the Loan Suspense Account for that year and shares of Company Stock contributed directly to the Plan by an Employer shall
be allocated and credited to each Active Participant’s (as defined in paragraph (b) of this Section 5.04) Company Stock Account based on the ratio that each Active Participant’s Compensation bears to the aggregate

  
 20 

	 	 
Compensation of all Active Participants for the Plan Year, provided, however, that, for purposes of this Section, an Active Participant’s Compensation shall not be considered for any part of
a Plan Year prior to the date the Participant commenced participation in the Plan, and then 

  

	 	(ii)	The cash contributions not used to repay an Acquisition Loan and any other property (other than shares of Company Stock) contributed for that year shall be allocated
and credited to each Active Participant’s Other Investments Account based on the ratio determined by comparing each Active Participant’s Compensation to the aggregate Compensation of all Active Participants for the Plan Year.

 (b) For purposes of this Section 5.04, the term “Active Participant” means those Employees who: 

 

	 	(i)	were employed by that Employer, including Employees on a Recognized Absence, on the last day of the Plan Year and completed
[            ] Hours of Service during the Plan Year, or 

  

	 	(ii)	who terminated employment during the Plan Year by reason of death, Disability, or attainment of their Retirement Date. 

Section 5.05 Limitations on Allocations. 
 (a) In General. This Section 5.05 is intended as good faith compliance with the final Treasury Regulations issued under Section 415 of the Code (the “Final Regulations”), and it
should be construed accordingly. Further, Section 415 of the Code and the Final Regulations are hereby incorporated herein by reference. The provisions of this Section 5.05 shall be effective for Limitation Years beginning on or after
July 1, 2007. 
 (b) Limitations on Annual Additions. The limitations set forth below shall apply to the allocations to each
Participant’s Accounts in any Plan Year. If the Annual Additions are exceeded for any Participant, then the Plan may correct such excess in accordance with the Employee Plans Compliance Resolution System (EPCRS) as set forth in Revenue
Procedure 2006-27, or any superseding guidance, including, but not limited to, the preamble of the Final Regulations, or by any other method specifically permitted by the Internal Revenue Service. 

 

	 	(i)	As used in the Plan, a Participant’s “Annual Additions” shall mean the sum for any Plan Year of the following amounts allocated to a Participant’s
Accounts: 

  

	 	(A)	The Participant’s share of Employer contributions; plus 

  

	 	(B)	The Participant’s share of any forfeitures; plus 

  
 21 

	 	(C)	The Participant’s allocable share of the Employer’s contributions to any individual medical benefit account (within the meaning of Section 415(l)(2) of
the Code) that is part of a pension or annuity plan maintained by the Employer; plus 

  

	 	(D)	With respect to any Participant who is a key employee, any amount that is derived from the Employer’s contributions paid or accrued that are attributable to
post-retirement medical benefits allocated to such Participant’s account under a welfare benefit fund (within the meaning of Section 419(e) of the Code) maintained by the Employer; and plus 

 

	 	(E)	The Participant’s share of any allocations under a simplified employee pension maintained by the Employer. 

 

	 	 	Any excess amount applied under Section 5.05(b)(iii) in a Plan Year to reduce the Employer contributions on behalf of any Participant shall be considered to be an
Annual Addition for such Participant for such Plan Year. 

  

	 	(ii)	Subject to the adjustments set forth below, and except for catch-up contributions under Section 414(v) of the Code, during any Plan Year the maximum Annual
Additions for any Participant shall in no event exceed the lesser of: 

  

	 	(A)	$49,000, (for 2010) as adjusted by the cost of living adjustment factor prescribed by the Secretary of the Treasury under Section 415(d) of the Code; or

  

	 	(B)	100% of the Participant’s Compensation for the Plan Year. 

  

	 	(iii)	The earnings limitation referred to in Section 5.05(b)(ii)(B) shall not apply to: 

 

	 	(A)	any contribution for medical benefits (within the meaning of Sections 401(h) of the or 419A(f)(2) of the Code) after separation from service that is otherwise
treated as an Annual Addition, or 

  

	 	(B)	any amount otherwise treated as an Annual Addition under Section 415(l)(1) of the Code. 

 

	 	(iv)	If, for any Plan Year, it is necessary to limit the Annual Additions of any Participant to comply with this Section 5.05, the methods as authorized pursuant to the
Final Regulations shall be utilized. 

  

	 	(v)	The limitations of this Article with respect to any Participant who, at any time, has been a participant in any other defined contribution plan (whether or not
terminated) or in more than one defined benefit plan (whether or not terminated) maintained by the Employer shall apply as if all such defined contribution plans or all such defined benefit plans in which the Participant has been a participant were
one plan. 

  
 22 

 (c) Compensation. For purposes of this Section 5.05, Compensation shall be
adjusted to reflect the general rule of Section 1.415(c)-2 of the Final Regulations. Notwithstanding the preceding sentence, Compensation for a Participant who is permanently and totally disabled (as defined in Section 22(e)(3) of the
Code) is the compensation the Participant would have received for the Limitation Year if the Participant had been paid at the rate of compensation paid immediately before becoming permanently and totally disabled if the conditions under the Final
Regulations are met. In addition, payments made within the later of (i) 2 1/2  months after severance from employment (within the meaning of Final Regulation Section 1.415(a)-1(f)(5)), or (ii) the end of the Limitation Year that contains the date of severance (the
“Post Severance Period”) will be Compensation within the meaning of Section 415(c)(3) of the Code if they are payments that, absent a severance from employment, would have been paid to the Participant while the Participant continued
in employment with the Employer and are regular compensation for services during the Participant’s regular working hours, compensation for services outside the Participant’s regular working hours (such as overtime or shift differential),
commissions, bonuses, or other similar compensation. 
 (d) Definition of Annual Additions. The Plan’s definition of
“Annual Additions” is modified as follows: 
  

	 	(i)	Restorative Payments. Annual Additions for purposes of Section 415 of the Code shall not include restorative payments. A restorative payment is a payment made to
restore losses to the Plan resulting from actions by a fiduciary for which there is reasonable risk of liability for breach of a fiduciary duty under ERISA or under other applicable federal or state law, where Participants who are similarly situated
are treated similarly with respect to the payments. Generally, payments are restorative payments only if the payments are made in order to restore some or all of the Plan’s losses due to an action (or a failure to act) that creates a reasonable
risk of liability for such a breach of fiduciary duty (other than a breach of fiduciary duty arising from failure to remit contributions to the Plan). This includes payments to the Plan made pursuant to a Department of Labor order, the Department of
Labor’s Voluntary Fiduciary Correction Program, or a court-approved settlement, to restore losses to a qualified defined contribution plan on account of the breach of fiduciary duty (other than a breach of fiduciary duty arising from failure to
remit contributions to the Plan). Payments made to the Plan to make up for losses due merely to market fluctuations and other payments that are not made on account of a reasonable risk of liability for breach of a fiduciary duty under ERISA are not
restorative payments and generally constitute contributions that are considered Annual Additions. 

  
 23 

	 	(ii)	Other Amounts. Annual Additions for purposes of Section 415 of the Code shall not include: (1) the direct transfer of a benefit or employee contributions from
a qualified plan to this Plan; (2) rollover contributions (as described in Sections 401(a)(31), 402(c)(1), 403(a)(4), 403(b)(8), 408(d)(3), and 457(e)(16) of the Code); (3) repayments of loans made to a Participant from the Plan; and
(4) repayments of amounts described in Section 411(a)(7)(B) of the Code (in accordance with Section 411(a)(7)(C)) of the Code and Section 411(a)(3)(D) of the Code or repayment of contributions to a governmental plan (as defined
in Section 414(d) of the Code) as described in Section 415(k)(3) of the Code, as well as Employer restorations of benefits that are required pursuant to such repayments. 

(e) Limitation Year. The “Limitation Year” (within the meaning of Section 415 of the Code) shall be the calendar year. The
Limitation Year may only be changed by a Plan amendment. If the Plan is terminated effective as of a date other than the last day of a Limitation Year, the Plan is deemed to have been amended to change its Limitation Year to end on the Plan’s
termination date. As a result of such deemed amendment, the Section 415(c)(1)(A) of the Code dollar limit shall be prorated under the short Limitation Year rules under the Final Regulations. 

(f) Multiple Defined Contribution Plans. In any case where a Participant also participates in another defined contribution plan of the Bank or its
Affiliates, the appropriate committee of such other plan shall first reduce the after-tax contributions under any such plan, shall then reduce any elective deferrals under any such plan subject to Section 401(k) of the Code, shall then reduce
all other contributions under any other such plan and, if necessary, shall then reduce contributions under this Plan, subject to the provisions of paragraph (h) of this Section 5.05. 

(g) Excess Allocations. If, after applying the allocation provisions under Section 5.04 of the Plan, allocations under Section 5.04 of
the Plan would otherwise result in a Participant’s account being in violation of Section 415 of the Code, the Committee shall reduce the Employer contributions for the next limitation year (and succeeding limitation years, as necessary)
for that Participant if that Participant is covered by the Plan as of the end of the limitation year. However, if that Participant is not covered by the Plan as of the end of the limitation year, then the excess amounts shall be held unallocated in
a suspense account for the limitation year and allocated and reallocated in the next limitation year to all the remaining Participants in the Plan; furthermore, the excess amounts shall be used to reduce Employer contributions for the next
limitation year (and succeeding limitation years, as necessary) for all the remaining Participants in the Plan. 
 (h) Allocations Pursuant
to Section 5.09. For purposes of this Section 5.05, no amount credited to any Participant’s Account pursuant to Section 5.09 of the Plan shall be counted as an “annual addition” for purposes of Section 415 of
the Code. In the event any amount cannot be allocated to Affected Participants (as defined in Section 5.09 of the Plan) under the Plan pursuant to the Section 5.09 of the Plan in the year of a Change in Control, the amount which may not be
so allocated in the year of the Change in Control shall be treated in accordance with this paragraph (h) of Section 5.05. 

  
 24 

 Section 5.06 Other Limitations. 
 Aside from the limitations set forth in Sections 5.05 of the Plan, in no event shall more than one-third of the Employer contributions to the Plan be allocated to the Accounts of Highly Compensated
Employees. In the event more than one-third of the Employer Contributions to the Plan are allocated to the Accounts of Highly Compensated Employees, the Committee shall determine the allocation of the reduced amount among the Highly Compensated
Employees such that the relative share of the Employer Contributions allocable to a Highly Compensated Employee is equal to such Highly Compensated Employee’s share of the contributions allocable to all Highly Compensated Employees if this
Section 5.06 were inapplicable. 
 Section 5.07 Limitations as to Certain Section 1042 Transactions. 

To the extent that a shareholder of Company Stock sell qualifying Company Stock to the Plan and elects (with the consent of the Bank) nonrecognition of
gain under Section 1042 of the Code, no portion of the Company Stock purchased in such nonrecognition transaction (or dividends or other income attributable thereto) may accrue or be allocated during the nonallocation period (the ten
(10) year period beginning on the later of the date of the sale of the qualified Company Stock or the date of the Plan allocation attributable to the final payment of an Acquisition Loan incurred in connection with such sale) for the benefit
of: 
 (a) the selling shareholder; 

(b) the spouse, brothers or sisters (whether by the whole or half blood), ancestors or lineal descendants of the selling shareholder or descendant
referred to in (a) above; or 
 (c) any other person who owns, after application of Section 318(a) of the Code, more than twenty-five
percent (25%) of: 
  

	 	(i)	any class of outstanding stock of the Bank or any Affiliate, or 

  

	 	(ii)	the total value of any class of outstanding stock of the Bank or any Affiliate. 

 For purposes of this Section 5.07, Section 318(a) of the Code shall be applied without regard to the employee trust exception of Section 318(a)(2)(B)(i) of the Code. 

Section 5.08 Dividends. 
 (a)
Stock Dividends. Dividends on Company Stock which are received by the Trustee in the form of additional Company Stock shall be retained in the portion of the Trust Fund consisting of Company Stock, and shall be allocated among the
Participant’s Accounts and the Loan Suspense Account in accordance with their holdings of the Company Stock on which the dividends have been paid. 

  
 25 

 (b) Cash Dividends on Allocated Shares. Dividends on Company Stock credited to Participants’
Accounts which are received by the Trustee in the form of cash shall, at the direction of the Bank, either: 
  

	 	(i)	be credited to Participants’ Accounts in accordance with Section 5.03 of the Plan and invested as part of the Trust Fund; 

 

	 	(ii)	be distributed immediately to the Participants; 

  

	 	(iii)	be distributed to the Participants within ninety (90) days of the close of the Plan Year in which paid; or 

 

	 	(iv)	be used to repay first principal and then, if available, interest on the Acquisition Loan used to acquire Company Stock on which the dividends were paid.

 In addition to the alternatives specified in the preceding paragraph regarding the treatment of cash dividends paid with
respect to shares of Company Stock credited to Participants’ Accounts, if authorized by the Committee for the Plan Year, a Participant may elect that cash dividends paid on Company Stock credited to the Participant’s Account shall either
be: 
  

	 	(i)	paid to the Plan, reinvested in Company Stock and credited to the Participant’s Account; 

 

	 	(ii)	distributed in cash to the Participant; or 

  

	 	(iii)	distributed to the Participant within ninety (90) days of the close of the Plan Year in which paid. 

Dividends subject to an election under this paragraph (and any Company Stock acquired therewith pursuant to a Participant’s election) shall at all
times be fully vested. To the extent the Committee authorizes dividend elections pursuant to this paragraph, the Committee shall establish policies and procedures relating to Participant elections and, if applicable, the reinvestment of cash
dividends in Company Stock, which are consistent with guidance issued under Section 404(k) of the Code. 
 (c) Cash Dividends on
Unallocated Shares. Dividends on Company Stock held in the Loan Suspense Account which are received by the Trustee in the form of cash shall be applied as soon as practicable to payments of first principal and then, if available, interest under
the Acquisition Loan incurred with the purchase of the Company Stock. 
 (d) Financed Shares. Financed Shares released from the Loan
Suspense Account by reason of dividends paid with respect to such Company Stock shall be allocated under Sections 5.03 and 5.04 of the Plan as follows: 

  
 26 

	 	(i)	First, Financed Shares with a fair market value at least equal to the dividends paid with respect the Company Stock allocated to Participants’ Accounts shall be
allocated among and credited to the Accounts of such Participants, pro rata, according to the number of shares of Company Stock held in such accounts on the date such dividend is declared by the Company; 

 

	 	(ii)	Then, any remaining Financed Shares released from the Loan Suspense Account by reason of dividends paid with respect to Company Stock held in the Loan Suspense Account
shall be allocated among and credited to the Accounts of all Participants, pro rata, according to each Participant’s Compensation. 

 Section 5.09 Allocations Upon Termination Prior to Satisfaction of Acquisition Loan. 
 (a) Notwithstanding any other provision of the Plan, in the event of a Change in Control, the Plan shall terminate as of the effective date of the Change in Control and, as soon as practicable thereafter,
the Trustee shall repay in full any outstanding Acquisition Loan. In connection with such repayment, the Trustee shall: (i) apply cash, if any, received by the Plan in connection with the transaction constituting a Change in Control, with
respect to the unallocated shares of Company Stock acquired with the proceeds of the Acquisition Loan, and (ii) to the extent additionally required to effect the repayment of the Acquisition Loan, obtain cash through the sale of any stock or
security received by the Plan in connection with such transaction, with respect to such unallocated shares of Company Stock. After repayment of the Acquisition Loan, all remaining shares of Company Stock held in the Loan Suspense Account, all other
stock or securities, and any cash proceeds from the sale or other disposition of any shares of Company Stock held in the Loan Suspense Account, shall be allocated among the Accounts of all Participants who were employed by an Employer on the date
immediately preceding the effective date of the Change in Control. Such allocations of shares or cash proceeds shall be credited as earnings for purposes of Section 5.05 of the Plan and Section 415 of the Code, as of the effective date of
the Change in Control, to the Account of each Participant who is either in active Service with an Employer, or is on a Recognized Absence, on the date immediately preceding the effective date of the Change of Control (each an “Affected
Participant”), in proportion to the opening balances in their Company Stock Accounts as of the first day of the current Valuation Period. As of the effective date of a Change in Control, all Participant Accounts shall be fully vested and
nonforfeitable. 
 (b) In the event of a termination of the Plan in connection with a Change in Control, this Section 5.09 shall have no
force and effect unless the price paid for the Company Stock in connection with a Change in Control is greater than the average basis of the unallocated Company Stock held in the Loan Suspense Account as of the date of the Change in Control.

  
 27 

 Section 5.10 Erroneous Allocations. 

No Participant shall be entitled to any annual additions or other allocations to his Account in excess of those permitted under Section 5. If it is
determined at any time that the administrator and/or Trustee have erred in accepting and allocating any contributions or forfeitures under this Plan, or in allocating investment adjustments, or in excluding or including any person as a Participant,
then the administrator, in a uniform and nondiscriminatory manner, shall determine the manner in which such error shall be corrected, after taking into consideration Sections 3.6 and 3.7 and any revenue procedure or other notice published by the
Internal Revenue Service regarding permissible correction methods, if applicable, and shall promptly advise the Trustee in writing of such error and of the method for correcting such error. The Accounts of any or all Participants may be revised, if
necessary, in order to correct such error. 
 Section 6 

Vesting 

Section 6.01 Deferred Vesting in Accounts. 
 (a) A Participant shall become vested in his Accounts in accordance with the following schedule: 
  

					
	 Years of Service
	  	Vested Percentage	 
	 Less than 2 years
	  	 	0	% 
	 2 years
	  	 	20	% 
	 3 years
	  	 	40	% 
	 4 years
	  	 	60	% 
	 5 years
	  	 	80	% 
	 6 years
	  	 	100	% 

 (b) For purposes of determining a
Participant’s Years of Service under this Section 6.01, employment with the Bank or an Affiliate shall be deemed employment with the Employer. With respect to Employees who enter the Plan pursuant to Section 3.01(a) of the Plan, for
purposes of determining a Participant’s vested percentage, all Years of Service shall be included. With respect to Employees who enter the Plan pursuant to Section 3.01(b) of the Plan, for purposes of determining a Participant’s
vested percentage, all Years of Service shall be included, subject to the provisions of Section 6.05 of the Plan. Notwithstanding any provision of the Plan to the contrary, calculation of Service for determining a Participant’s Vested
Percentage with respect to qualified military service will be provided in accordance with Section 414(u) of the Code. 

Section 6.02 Immediate Vesting in Certain Situations. 
 (a) Notwithstanding Section 6.01(a) of the Plan, a Participant shall become fully vested in his Accounts upon the earlier of: 

  
 28 

	 	(i)	termination of the Plan or upon the permanent and complete discontinuance of contributions by his Employer to the Plan; provided, however, that in the event of a
partial termination, the interest of each Participant shall fully vest only with respect to that part of the Plan which is terminated; 

  

	 	(ii)	The Participant’s Normal Retirement Age; 

  

	 	(iii)	A Change in Control; or 

  

	 	(iv)	Termination of employment by reason of death or Disability. For purposes of this Section 6.02, benefits payable in the event of a Participant’s death or
Disability while performing qualified military service shall fully vest in accordance with Section 414(u)(9) of the Code. 

Section 6.03 Treatment of Forfeitures. 
 (a) If a Participant who is not fully vested in his Accounts terminates employment, that portion of his Accounts in which he is not vested shall be forfeited upon the earlier of: 

 

	 	(i)	The date the Participant receives a distribution of his entire vested benefits under the Plan, or 

 

	 	(ii)	The date at which the Participant incurs five (5) consecutive Breaks in Service. 

 (b) If a Participant who has terminated employment and has received a distribution of his entire vested benefits under the Plan is subsequently reemployed by an Employer prior to incurring five
(5) consecutive Breaks in Service, he shall have the portion of his Accounts which was previously forfeited restored to his Accounts, provided he repays to the Trustee within five (5) years of his subsequent employment date an amount equal
to the distribution. The amount restored to the Participant’s Account shall be credited to his Account as of the last day of the Plan Year in which the Participant repays the distributed amount to the Trustee and the restored amount shall come
from other Employees’ forfeitures and, if such forfeitures are insufficient, from a special contribution by his Employer for that year. If a Participant’s employment terminates prior to his Account having become vested, such Participant
shall be deemed to have received a distribution of his entire vested interest as of the Valuation Date next following his termination of employment. 
 (c) If a Participant who has terminated employment but has not received a distribution of his entire vested benefits under the Plan is subsequently reemployed by an Employer subsequent to incurring five
(5) consecutive Breaks in Service, any undistributed balance of his Accounts from his prior participation which was not forfeited shall be maintained as a fully vested subaccount with his Account. 

  
 29 

 (d) If a portion of a Participant’s Account is forfeited, assets other than Company Stock must be
forfeited before any Company Stock may be forfeited. 
 (e) Forfeitures shall be reallocated among the other Participants in the Plan.

 Section 6.04 Accounting for Forfeitures. 
 A forfeiture shall be charged to the Participant’s Account as of the first day of the first Valuation Period in which the forfeiture becomes certain pursuant to Section 6.03 of the Plan. Except
as otherwise provided in Section 6.03 of the Plan, a forfeiture shall be added to the contributions of the terminated Participant’s Employer which are to be credited to other Participants pursuant to Section 4 as of the last day of
the Plan Year in which the forfeiture becomes certain. 
 Section 6.05 Vesting Upon Reemployment. 

(a) If an Employee is not vested in his Accounts, incurs a Break in Service and again performs an Hour of Service, such Employee shall receive credit for
his Years of Service prior to his Break in Service only if the number of consecutive Breaks in Service is less than the greater of: (i) five (5) years or (ii) the aggregate number of his Years of Service credited before his Break in
Service. 
 (b) If a Participant is partially vested in his Accounts, incurs a Break in Service and again performs an Hour of Service, such
Participant shall receive credit for his Years of Service prior to his Break in Service; provided, however, that after five (5) consecutive Breaks in Service, a former Participant’s vested interest in his Accounts attributable to Years of
Service prior to his Break in Service shall not be increased as a result of his Years of Service following his reemployment date. 
 (c) If a
Participant is fully vested in his Accounts, incurs a Break in Service and again performs an Hour of Service, such Participant shall receive credit for all his Years of Service prior to his Breaks in Service. 

Section 7 
 Distributions 
 Section 7.01 Distribution of Benefit Upon a Termination of
Employment. 
 (a) A Participant whose employment terminates for any reason shall receive the entire vested portion of his Accounts in a
single payment on a date selected by the Committee; provided, however, that such date shall be on or before the 60th day after the end of the Plan Year in which the Participant’s employment terminated. The benefits from that portion of the
Participant’s Other Investments Account shall be calculated on the basis of the most recent Valuation Date before the date of payment. Subject to the provisions of Section 7.05 of the Plan, if the Committee so provides, a Participant may
elect that his benefits be distributed to him in the form of Company Stock, cash, or some combination thereof. In 

  
 30 

 
addition, if a Participant did not receive a distribution of his vested Account balance but his non-vested Account balance was forfeited after a Break in Service, such nonvested Account balance
shall be restored if the Plan terminates before the Participant has a five-year Break in Service. If the Participant did not receive a distribution of his vested Account balance, any forfeiture restored shall include earnings that would have been
credited to the Account but for the forfeiture. 
 (b) Notwithstanding paragraph (a) of this Section 7.01, if the balance credited to
a Participant’s Accounts exceeds, at the time such benefit was distributable, $1,000, his benefits shall not be paid before the latest of his 65th birthday or the tenth anniversary of the year in which he commenced participation in the Plan,
unless he elects an early payment date in a written election filed with the Committee. Such an election is not valid unless it is made after the Participant has received the required notice under Section 1.411(a)-11(c) of the Treasury
Regulations that provides a general description of the material features of a lump sum distribution and the Participant’s right to defer receipt of his benefits under the Plan. The notice shall be provided no less than 30 days and no more than
ninety (90) days before the first day on which all events have occurred which entitle the Participant to such benefit. Written consent of the Participant to the distribution generally may not be made within 30 days of the date the Participant
receives the notice and shall not be made more than ninety (90) days from the date the Participant receives the notice. However, a distribution may be made less than 30 days after the notice provided under Section 1.411(a)-11(c) of the
Treasury Regulations is given, if: 
  

	 	(i)	the Committee clearly informs the Participant that he has a right to a period of at least 30 days after receiving the notice to consider the decision of whether or not
to elect a distribution (and if applicable, a particular distribution option), and 

  

	 	(ii)	the Participant, after receiving the notice, affirmatively elects a distribution. 

 A Participant may modify such an election at any time, provided any new benefit payment date is at least 30 days after a modified election is delivered to the Committee. 

Section 7.02 Minimum Distribution Requirements. 
 (a) General Rules. 
  

	 	(i)	Precedence. The requirements of this Section 7.02 will take precedence over any inconsistent provisions of the Plan. 

 

	 	(ii)	Requirements of Treasury Regulations Incorporated. All distributions required under this Section will be determined and made in accordance with the Treasury
Regulations under section 401(a)(9) of the Internal Revenue Code. 

  
 31 

	 	(iii)	TEFRA Section 242(b)(2) Elections. Notwithstanding the other provisions of this article, distributions may be made under a designation made before
January 1, 1984, in accordance with section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA) and the provisions of the plan that relate to section 242(b)(2) of TEFRA. 

(b) Time and Manner of Distribution. 
  

	 	(i)	Required Beginning Date. The participant’s entire interest will be distributed, or begin to be distributed, to the participant no later than the
participant’s required beginning date. 

  

	 	(ii)	Death of Participant Before Distributions Begin. If the participant dies before distributions begin, the participant’s entire interest will be distributed,
or begin to be distributed, no later than as follows: 

  

	 	(A)	 If the participant’s surviving spouse is the participant’s sole designated beneficiary, then, except as provided in the adoption agreement,
distributions to the surviving spouse will begin by December 31 of the calendar year immediately following the calendar year in which the participant died, or by December 31 of the calendar year in which the participant would have attained
age 70 1/2, if later.

  

	 	(B)	If the participant’s surviving spouse is not the participant’s sole designated beneficiary, then, except as provided in the adoption agreement, distributions
to the designated beneficiary will begin by December 31 of the calendar year immediately following the calendar year in which the participant died. 

  

	 	(C)	If there is no designated beneficiary as of September 30 of the year following the year of the participant’s death, the participant’s entire interest
will be distributed by December 31 of the calendar year containing the fifth anniversary of the participant’s death. 

  

	 	(D)	If the participant’s surviving spouse is the participant’s sole designated beneficiary and the surviving spouse dies after the participant but before
distributions to the surviving spouse begin, this section (b)(ii), other than section (b)(ii)(A), will apply as if the surviving spouse were the participant. 

 

	 	(iii)	Forms of Distribution. All distributions under this Plan will be made in a single lump sum. 

(c) Required Minimum Distributions During Participant’s Lifetime. 
  

	 	(i)	Amount of Required Minimum Distribution For Each Distribution Calendar Year. During the participant’s lifetime, the minimum amount that will be distributed
for each distribution calendar year is the lesser of: 

  

	 	(A)	the quotient obtained by dividing the participant’s account balance by the distribution period in the Uniform Lifetime Table set forth in section 1.401(a)(9)-9 of
the Treasury Regulations, using the participant’s age as of the participant’s birthday in the distribution calendar year; or 

  
 32 

	 	(B)	if the participant’s sole designated beneficiary for the distribution calendar year is the participant’s spouse, the quotient obtained by dividing the
participant’s account balance by the number in the Joint and Last Survivor Table set forth in section 1.401(a)(9)-9 of the Treasury Regulations, using the participant’s and spouse’s attained ages as of the participant’s and
spouse’s birthdays in the distribution calendar year; or 

  

	 	(ii)	Lifetime Required Minimum Distributions Continue Through Year of Participant’s Death. Required minimum distributions will be determined under this section
(c) beginning with the first distribution calendar year and up to and including the distribution calendar year that includes the participant’s date of death. 

 (d) Required Minimum Distributions After Participant’s Death. 
  

	 	(i)	Death On or After Date Distributions Begin. 

  

	 	(A)	Participant Survived by Designated Beneficiary. If the participant dies on or after the date distributions begin and there is a designated beneficiary, the minimum
amount that will be distributed for each distribution calendar year after the year of the participant’s death is the quotient obtained by dividing the participant’s account balance by the longer of the remaining life expectancy of the
participant or the remaining life expectancy of the participant’s designated beneficiary, determined as follows: 

  

	 	1.	The participant’s remaining life expectancy is calculated using the age of the participant in the year of death, reduced by one for each subsequent year.

  

	 	2.	If the participant’s surviving spouse is the participant’s sole designated beneficiary, the remaining life expectancy of the surviving spouse is calculated
for each distribution calendar year after the year of the participant’s death using the surviving spouse’s age as of the spouse’s birthday in that year. For distribution calendar years after the year of the surviving spouse’s
death, the remaining life expectancy of the surviving spouse is calculated using the age of the surviving spouse as of the spouse’s birthday in the calendar year of the spouse’s death, reduced by one for each subsequent calendar year.

  
 33 

	 	3.	If the participant’s surviving spouse is not the participant’s sole designated beneficiary, the designated beneficiary’s remaining life expectancy is
calculated using the age of the beneficiary in the year following the year of the participant’ death, reduced by one for each subsequent year. 

  

	 	(B)	No Designated Beneficiary. If the participant dies on or after the date distributions begin and there is no designated beneficiary as of September 30 of the year
after the year of the participant’s death, the minimum amount that will be distributed for each distribution calendar year after the year of the participant’s death is the quotient obtained by dividing the participant’s account
balance by the participant’s remaining life expectancy calculated using the age of the participant in the year of death, reduced by one for each subsequent year. 

 

	 	(ii)	Death Before Date Distributions Begin. 

  

	 	(A)	Participant Survived by Designated Beneficiary. Except as provided in the adoption agreement, if the participant dies before the date distributions begin and there is a
designated beneficiary, the minimum amount that will be distributed for each distribution calendar year after the year of the participant’s death is the quotient obtained by dividing the participant’s account balance by the remaining life
expectancy of the participant’s designated beneficiary, determined as provided in this Section. 

  

	 	(B)	No Designated Beneficiary. If the participant dies before the date distributions begin and there is no designated beneficiary as of September 30 of the year
following the year of the participant’s death, distribution of the participant’s entire interest will be completed by December 31 of the calendar year containing the fifth anniversary of the participant’s death.

  

	 	(C)	Death of Surviving Spouse Before Distributions to Surviving Spouse Are Required to Begin. If the participant dies before the date distributions begin, the
participant’s surviving spouse is the participant’s sole designated beneficiary, and the surviving spouse dies before distributions are required to begin to the surviving spouse, this section will apply as if the surviving spouse were the
participant. 

  
 34 

 (e) Definitions for Section 7.02. 

 

	 	(i)	Designated beneficiary. The individual who is designated as the beneficiary under the Plan and is the designated beneficiary under section 401(a)(9) of the
Internal Revenue Code and section 1.401(a)(9)-1, Q&A-4, of the Treasury Regulations. 

  

	 	(ii)	Distribution calendar year. A calendar year for which a minimum distribution is required. For distributions beginning before the participant’s death, the
first distribution calendar year is the calendar year immediately preceding the calendar year which contains the participant’s required beginning date. For distributions beginning after the participant’s death, the first distribution
calendar year is the calendar year in which distributions are required to begin under section (b)(ii). The required minimum distribution for the participant’s first distribution calendar year will be made on or before the participant’s
required beginning date. The required minimum distribution for other distribution calendar years, including the required minimum distribution for the distribution calendar year in which the participant’s required beginning date occurs, will be
made on or before December 31 of that distribution calendar year. 

  

	 	(iii)	Life expectancy. Life expectancy as computed by use of the Single Life Table in section 1.401(a)(9)-9 of the Treasury Regulations. 

 

	 	(iv)	Participant’s account balance. The account balance as of the last valuation date in the calendar year immediately preceding the distribution calendar year
(valuation calendar year) increased by the amount of any contributions made and allocated or forfeitures allocated to the account balance as of dates in the valuation calendar year after the valuation date and decreased by distributions made in the
valuation calendar year after the valuation date. The account balance for the valuation calendar year includes any amounts rolled over transferred to the plan either in the valuation calendar year or in the distribution calendar year if distributed
or transferred in the valuation calendar year. 

 Section 7.03 Benefits on a Participant’s Death.

 (a) If a Participant dies before his benefits are paid pursuant to Section 7.01 of the Plan, the balance credited to his Accounts
shall be paid to his Beneficiary in a single distribution on or before the 60th day after the end of the Plan Year in which the Participant died. If the Participant has not named a Beneficiary or if his named Beneficiary should not survive him, then
the balance in his Account shall be paid to his spouse (if married) or his estate. The benefits from that portion of the Participant’s Other Investments Account shall be calculated on the basis of the most recent Valuation Date before the date
of payment. 

  
 35 

 (b) If a married Participant dies before his benefit payments begin, then, unless he has specifically
elected otherwise, the Committee shall cause the balance in his Accounts to be paid to his spouse, as Beneficiary. A married Participant may name an individual other than his spouse as his Beneficiary, provided that such election is accompanied by
the spouse’s written consent, which must: 
  

	 	(i)	acknowledge the effect of the election; 

  

	 	(ii)	explicitly provide either that the designated Beneficiary may not subsequently be changed by the Participant without the spouse’s further consent or that it may be
changed without such consent; and 

  

	 	(iii)	must be witnessed by the Committee, its representative, or a notary public. 

 This requirement shall not apply if the Participant establishes to the Committee’s satisfaction that the spouse may not be located. 
 (c) The Committee shall from time to time take whatever steps it deems appropriate to keep informed of each Participant’s marital status. Each Employer shall provide the Committee with the most
reliable information in the Employer’s possession regarding its Participants’ marital status, and the Committee may, in its discretion, require a notarized affidavit from any Participant as to his marital status. The Committee, the Plan,
the Trustee, and the Employers shall be fully protected and discharged from any liability to the extent of any benefit payments made as a result of the Committee’s good faith and reasonable reliance upon information obtained from a Participant
as to the Participant’s marital status. 
 Section 7.04 Delay in Benefit Determination. 

If the Committee is unable to determine the benefits payable to a Participant or Beneficiary on or before the latest date prescribed for payment pursuant
to this Section 7, the benefits shall in any event be paid within 60 days after they can first be determined, with whatever makeup payments may be appropriate in view of the delay. 
 Section 7.05 Options to Receive and Sell Stock. 
 (a) Unless ownership of
virtually all Company Stock is restricted to active Employees and qualified retirement plans for the benefit of Employees pursuant to the certificates of incorporation or by-laws of the Employers issuing Company Stock, a terminated Participant or
the Beneficiary of a deceased Participant may instruct the Committee to distribute the Participant’s entire vested interest in his Accounts in the form of Company Stock. In that event, the Committee shall apply the Participant’s vested
interest in his Other Investments Account to purchase sufficient Company Stock to make the required distribution. 
 (b) Any Participant who
receives Company Stock pursuant to this Section, and any person who has received Company Stock from the Plan or from such a Participant by reason of the Participant’s death or incompetency, by reason of divorce or separation from the
Participant, or by reason of a rollover distribution described in Section 402(c) of the Code, 

  
 36 

 
shall have the right to require the Employer which issued the Company Stock to purchase the Company Stock for its current fair market value (hereinafter referred to as the “put right”).
The put right shall be exercisable by written notice to the Committee during the first 60 days after the Company Stock is distributed by the Plan, and, if not exercised in that period, during the first 60 days in the following Plan Year after the
Committee has communicated to the Participant its determination as to the Company Stock’s current fair market value. If the put right is exercised, the Trustee may, if so directed by the Committee in its sole discretion, assume the
Employer’s rights and obligations with respect to purchasing the Stock. However, the put right shall not apply to the extent that the Company Stock, at the time the put right would otherwise be exercisable, may be sold on an established market
in accordance with federal and state securities laws and regulations. 
 (c) With respect to a put right, the Employer or the Trustee, as the
case may be, may elect to pay for the Company Stock in equal periodic installments, not less frequently than annually, over a period not longer than five (5) years from the 30th day after the put right is exercised pursuant to paragraph
(b) of this Section 7.05, with adequate security and interest at a reasonable rate on the unpaid balance, all such terms to be set forth in a promissory note delivered to the seller with normal terms as to acceleration upon any uncured
default. 
 (d) Nothing contained in this Section 7.05 shall be deemed to obligate any Employer to register any Company Stock under any
federal or state securities law or to create or maintain a public market to facilitate the transfer or disposition of any Company Stock. The put right described in this Section 7.05 may only be exercised by a person described in the paragraph
(b) of this Section 7.05, and may not be transferred with any Company Stock to any other person. As to all Company Stock purchased by the Plan in exchange for any Acquisition Loan, the put right be nonterminable. The put right for Company
Stock acquired through a Acquisition Loan shall continue with respect to such Company Stock after the Acquisition Loan is repaid or the Plan ceases to be an employee stock ownership plan. Except as provided above, in accordance with the provisions
of Sections 54.4975-7(b)(4) of the Treasury Regulations, no Company Stock acquired with the proceeds of an Acquisition Loan may be subject to any put, call or other option or buy-sell or similar arrangement while held by, and when distributed from,
the Plan, whether the Plan is then an employee stock ownership plan. 
 Section 7.06 Restrictions on Disposition of Stock.

 Except in the case of Company Stock which is traded on an established market, a Participant who receives Company Stock pursuant to this
Section 7, and any person who has received Company Stock from the Plan or from such a Participant by reason of the Participant’s death or incompetency, by reason of divorce or separation from the Participant, or by reason of a rollover
distribution described in Section 402(c) of the Code, shall, prior to any sale or other transfer of the Company Stock to any other person, first offer the Company Stock to the issuing Employer and to the Plan at its current fair market value.
This restriction shall apply to any transfer, whether voluntary, involuntary, or by operation of law, and whether for consideration or gratuitous. Either the Employer or the 

  
 37 

 
Trustee may accept the offer within 14 days after it is delivered. Any Company Stock distributed by the Plan shall bear a conspicuous legend describing the right of first refusal under this
Section 7.06, as applicable, as well as any other restrictions upon the transfer of the Company Stock imposed by federal and state securities laws and regulations. 
 Section 7.07 Direct Transfer of Eligible Plan Distributions. 
 (a)
Notwithstanding any provision of the Plan to the contrary that would otherwise limit a distributee’s election under this Section, a distributee (as defined below) may elect to have any portion of an eligible rollover distribution (as defined
below) paid directly to an eligible retirement plan (as defined below) specified by the distributee in a direct rollover (as defined below). A “distributee” includes a Participant or former Participant. In addition, the Participant’s
or former Participant’s surviving spouse and the Participant’s or former Participant’s spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Section 414(p) of the Code, are
distributees with regard to the interest of the spouse or former spouse. For purposes of this Section 7.07 a “direct rollover” is a payment by the Plan to the eligible retirement plan specified by the distributee. 

(b) To effect such a direct transfer, the distributee must notify the Committee that a direct rollover is desired and provide to the Committee sufficient
information regarding the eligible retirement plan to which the payment is to be made. Such notice shall be made in such form and at such time as the Committee may prescribe. Upon receipt of such notice, the Committee shall direct the Trustee to
make a trustee-to-trustee transfer of the eligible rollover distribution to the eligible retirement plan so specified. 
 (c) For purposes of
this Section 7.07, an “eligible rollover distribution” shall have the meaning set forth in Section 402(c)(4) of the Code and any Treasury Regulations promulgated thereunder. To the extent such meaning is not inconsistent with the
above references, an eligible rollover distribution shall mean any distribution of all or any portion of the Participant’s Account, except that such term shall not include any distribution which is one of a series of substantially equal
periodic payments (not less frequently than annually) made (i) for the life (or life expectancy) of the Participant or the joint lives (or joint life expectancies) of the Participant and a designated Beneficiary, or (ii) for a period of
ten (10) years or more. Further, the term “eligible rollover distribution” shall not include any distribution required to be made under Section 401(a)(9) of the Code or, the portion of any distribution that is not includible in
gross income (determined without regard to the exclusions for net unrealized appreciation with respect to Company Stock). To the extent applicable under the Plan, “eligible rollover distributions” shall also not include any hardship
distribution described in Section 401(k)(2)(B)(i)(IV) of the Code. 
 (d) For purposes of this Section 7.07, an “eligible
retirement plan” shall have the meaning set forth in Section 402(c)(8) of the Code and any Treasury Regulations promulgated thereunder. To the extent such meaning is not consistent with the above references, an eligible retirement plan
shall mean: (i) an individual retirement account described in Section 408(a) of the Code, (ii) an individual retirement annuity described in Section 408(b) of the 

  
 38 

 
Code, (iii) an annuity or annuity plan described in Section 403(a) or Section 403(b) of the Code, (iv) a qualified trust described in Section 401(a) of the Code, or
(v) a governmental plan under Section 457 of the Code that accepts the distributee’s eligible rollover distribution. However, in the case of an eligible rollover distribution to a surviving spouse, an eligible retirement plan means an
individual retirement account or individual retirement annuity. 
 (e) An eligible retirement plan shall also mean an annuity contract described
in Section 403(b) of the Code and an eligible plan under Section 457(b) of the Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state which
agrees to separately account for amounts transferred into such plan from this Plan. The definition of eligible retirement plan shall also apply in the case of a distribution to a surviving spouse, or to a spouse or former spouse who is the alternate
payee under a qualified domestic relation order as defined in Section 414(p) of the Code. 
 Section 7.08 Waiver of 30-Day
Period After Notice of Distribution. 
 If a distribution is one to which Sections 401(a)(11) and 417 of the Code do not apply, such
distribution may commence less than 30 days after the notice required under Treasury Regulations Section 1.411(a)-11(c) is given, provided that: 
  

	 	(i)	the Trustee or Committee, as applicable, clearly informs the Participant that the Participant has a right to a period of at least 30 days after receiving the notice to
consider the decision of whether or not to elect a distribution (and, if applicable, a particular option), and 

  

	 	(ii)	the Participant, after receiving the notice, affirmatively elects a distribution. 

 Section 8 
 Voting of Company Stock and Tender Offers 

Section 8.01 Voting of Company Stock. 
 (a) In General. The Trustee shall generally vote all shares of Company Stock held in the Trust in accordance with the provisions of this Section 8.01. 

(b) Allocated Shares. Shares of Company Stock which have been allocated to Participants’ Accounts shall be voted by the Trustee in accordance
with the Participants’ written instructions. 
 (c) Uninstructed and Unallocated Shares. Shares of Company Stock which have been
allocated to Participants’ Accounts but for which no written instructions have been received by the Trustee regarding voting shall be voted by the Trustee in a manner calculated to most accurately reflect the instructions the Trustee has
received from Participants regarding voting shares of allocated Company Stock. Shares of unallocated Company 

  
 39 

 
Stock shall also be voted by the Trustee in a manner calculated to most accurately reflect the instructions the Trustee has received from Participants regarding voting shares of allocated Company
Stock. Notwithstanding the preceding two sentences, all shares of Company Stock which have been allocated to Participants’ Accounts and for which the Trustee has not timely received written instructions regarding voting and all unallocated
shares of Company Stock must be voted by the Trustee in a manner determined by the Trustee to be solely in the best interests of the Participants and Beneficiaries. 
 (d) Voting Prior to Allocation. In the event no shares of Company Stock have been allocated to Participants’ Accounts at the time Company Stock is to be voted, each Participant shall be deemed
to have one share of Company Stock allocated to his Accounts for the sole purpose of providing the Trustee with voting instructions. 
 (e)
Procedure and Confidentiality. Whenever such voting rights are to be exercised, the Employers, the Committee, and the Trustee shall see that all Participants and Beneficiaries are provided with the same notices and other materials as are
provided to other holders of the Company Stock, and are provided with adequate opportunity to deliver their instructions to the Trustee regarding the voting of Company Stock allocated to their Accounts or deemed allocated to their Accounts for
purposes of voting. The instructions of the Participants with respect to the voting of shares of Company Stock shall be confidential. 

Section 8.02 Tender Offers. 

In the event of a tender offer, Company Stock shall be tendered by the Trustee in the same manner set forth in Section 8.01 of the Plan regarding the
voting of Company Stock. 
 Section 9 
 The Committee and Plan Administration 
 Section 9.01 Identity of the
Committee. 
 The Committee shall consist of three or more individuals selected by the Bank. Any individual, including a director,
trustee, shareholder, officer, or Employee of an Employer, shall be eligible to serve as a member of the Committee. The Bank shall have the power to remove any individual serving on the Committee at any time without cause upon ten (10) days
written notice to such individual and any individual may resign from the Committee at any time without reason upon ten (10) days written notice to the Bank. The Bank shall notify the Trustee of any change in membership of the Committee.

 Section 9.02 Authority of Committee. 
 (a) The Committee shall be the “plan administrator” within the meaning of ERISA and shall have exclusive responsibility and authority to control and manage the operation and administration of
the Plan, including the interpretation and application of its provisions, except to the extent such responsibility and authority are otherwise specifically: 
  

	 	(i)	allocated to the Bank, the Employers, or the Trustee under the Plan and Trust Agreement; 

  
 40 

	 	(ii)	delegated in writing to other persons by the Bank, the Employers, the Committee, or the Trustee; or 

 

	 	(iii)	allocated to other parties by operation of law. 

(b) The Committee shall have exclusive responsibility regarding decisions concerning the payment of benefits under the Plan. 

(c) The Committee shall have full investment responsibility with respect to the Investment Fund except to the extent, if any, specifically provided in
the Trust Agreement. 
 (d) In the discharge of its duties, the Committee may employ accountants, actuaries, legal counsel, and other agents
(who also may be employed by an Employer or the Trustee in the same or some other capacity) and may pay such individuals reasonable compensation and expenses for their services rendered with respect to the operation or administration of the Plan to
the extent such payments are not otherwise prohibited by law. 
 Section 9.03 Duties of Committee. 

(a) The Committee shall keep whatever records may be necessary in connection with the maintenance of the Plan and shall furnish to the Employers whatever
reports may be required from time to time by the Employers. The Committee shall furnish to the Trustee whatever information may be necessary to properly administer the Trust. The Committee shall see to the filing with the appropriate government
agencies of all reports and returns required with respect to the Plan under ERISA and the Code and other applicable laws. 
 (b) The Committee
shall have exclusive responsibility and authority with respect to the Plan’s holdings of Company Stock and shall direct the Trustee in all respects regarding the purchase, retention, sale, exchange, and pledge of Company Stock and the creation
and satisfaction of any Acquisition Loan to the extent such responsibilities are not set forth in the Trust Agreement. 
 (c) The Committee
shall at all times act consistently with the Bank’s long-term intention that the Plan, as an employee stock ownership plan, be invested primarily in Company Stock. Subject to the direction of the Committee with respect to any Acquisition Loan
pursuant to the provisions of Section 4.03 of the Plan, and subject to the provisions of Sections 7.05 and 11.04 of the Plan as to Participants’ rights under certain circumstances to have their Accounts invested in Company Stock or in
assets other than Company Stock, the Committee shall determine, in its sole discretion, the extent to which assets of the Trust shall be used to repay any Acquisition Loan, to purchase Company Stock, or to invest in other assets selected by the
Committee or an investment manager. No provision of the Plan relating to the allocation or vesting of any interests in the Company Stock or 

  
 41 

 
investments other than Company Stock shall restrict the Committee from changing any holdings of the Trust Fund, whether the changes involve an increase or a decrease in the Company Stock or other
assets credited to Participants’ Accounts. In determining the proper extent of the Trust Fund’s investment in Company Stock, the Committee shall be authorized to employ investment counsel, legal counsel, appraisers, and other agents and to
pay their reasonable compensation and expenses to the extent such payments are not prohibited by law. 
 (d) If the valuation of any Company
Stock is not established by reported trading on a generally recognized public market, then the Committee shall have the exclusive authority and responsibility to determine value of the Company Stock for all purposes under the Plan. Such value shall
be determined as of each Valuation Date and on any other date as of which the Trustee purchases or sells Company Stock in a manner consistent with Section 4975 of the Code and the Treasury Regulations thereunder. The Committee shall use
generally accepted methods of valuing stock of similar corporations for purposes of arm’s length business and investment transactions, and in this connection the Committee shall obtain, and shall be protected in relying upon, the valuation of
Company Stock as determined by an independent appraiser experienced in preparing valuations of similar businesses. 
 Section 9.04
Compliance with ERISA and the Code. 
 The Committee shall perform all acts necessary to ensure the Plan’s compliance with ERISA
and the Code. Each individual member of the Committee shall discharge his duties in good faith and in accordance with the applicable requirements of ERISA and the Code. 
 Section 9.05 Action by Committee. 
 All actions of the Committee shall be
governed by the affirmative vote of a number of the members of the Committee which is a majority of the total number of the members of the Committee. The members of the Committee may meet informally and may take any action without meeting as a
group. 
 Section 9.06 Execution of Documents. 
 Any instrument executed by the Committee may be signed by any member of the Committee. 

Section 9.07 Adoption of Rules. 
 The Committee shall adopt such rules and regulations of uniform applicability as it deems necessary or appropriate for the proper operation, administration and interpretation of the Plan. 

  
 42 

 Section 9.08 Responsibilities to Participants. 

The Committee shall determine which Employees qualify to participate in the Plan. The Committee shall furnish to each Eligible Employee whatever summary
plan descriptions, summary annual reports, and other notices and information may be required under ERISA. The Committee also shall determine when a Participant or his Beneficiary qualifies for the payment of benefits under the Plan. The Committee
shall furnish to each such Participant or Beneficiary whatever information is required under ERISA or the Code (or is otherwise appropriate) to enable the Participant or Beneficiary to make whatever elections may be available pursuant to
Section 7, and the Committee shall provide for the payment of benefits in the proper form and amount from the Trust. The Committee may decide in its sole discretion to permit modifications of elections and to defer or accelerate benefits to the
extent consistent with the terms of the Plan, applicable law, and the best interests of the individuals concerned. 
 Section 9.09
Alternative Payees in Event of Incapacity. 
 If the Committee finds at any time that an individual qualifying for benefits under this
Plan is a minor or is incompetent, the Committee may direct the benefits to be paid, in the case of a minor, to his parents, his legal guardian, a custodian for him under the Uniform Transfers to Minors Act, or the person having actual custody of
him, or, in the case of an incompetent, to his spouse, his legal guardian, or the person having actual custody of him. The Committee and the Trustee shall not be obligated to inquire as to the actual use of the funds by the person receiving them
under this Section 9.09, and any such payment shall completely discharge the obligations of the Plan, the Trustee, the Committee, and the Employers to the extent of the payment. 
 Section 9.10 Indemnification by Employers. 
 Except as separately agreed in
writing, the Committee, and any member or employee of the Committee, shall be indemnified and held harmless by the Employers, jointly and severally, to the fullest extent permitted by law against any and all costs, damages, expenses, and liabilities
reasonably incurred by or imposed upon the Committee or such individual in connection with any claim made against the Committee or such individual or in which the Committee or such individual may be involved by reason of being, or having been, the
Committee, or a member or employee of the Committee, to the extent such amounts are not paid by insurance. 
 Section 9.11 Abstention
by Interested Member. 
 Any member of the Committee who also is a Participant in the Plan shall take no part in any determination
specifically relating to his own participation or benefits under the Plan, unless his abstention would render the Committee incapable of acting on the matter. 

  
 43 

 Section 10 

Rules Governing Benefit Claims 
 Section 10.01 Claim for Benefits. 
 Any Participant or Beneficiary who qualifies
for the payment of benefits shall file a claim for his benefits with the Committee on a form provided by the Committee. The claim, including any election of an alternative benefit form, shall be filed at least 30 days before the date on which the
benefits are to begin. If a Participant or Beneficiary fails to file a claim by the 30th day before the date on which benefits become payable, he shall be presumed to have filed a claim for payment for the Participant’s benefits in the standard
form prescribed by Section 7 of the Plan. 
 Section 10.02 Notification by Committee. 

Within 90 days after receiving a claim for benefits (or within 180 days, if special circumstances require an extension of time and written notice of the
extension is given to the Participant or Beneficiary within 90 days after receiving the claim for benefits), the Committee shall notify the Participant or Beneficiary whether the claim has been approved or denied. If the Committee denies a claim in
any respect, the Committee shall set forth in a written notice to the Participant or Beneficiary: 
 (a) each specific reason for the denial;

 (b) specific references to the pertinent Plan provisions on which the denial is based; 

(c) a description of any additional material or information which could be submitted by the Participant or Beneficiary to support his claim, with an
explanation of the relevance of such information; and 
 (d) an explanation of the claims review procedures set forth in Section 10.03 of
the Plan. 
 Section 10.03 Claims Review Procedure. 
 Within 60 days after a Participant or Beneficiary receives notice from the Committee that his claim for benefits has been denied in any respect, he may file with the Committee a written notice of appeal
setting forth his reasons for disputing the Committee’s determination. In connection with his appeal the Participant or Beneficiary or his representative may inspect or purchase copies of pertinent documents and records to the extent not
inconsistent with other Participants’ and Beneficiaries’ rights of privacy. Within 60 days after receiving a notice of appeal from a prior determination (or within 120 days, if special circumstances require an extension of time and written
notice of the extension is given to the Participant or Beneficiary and his representative within 60 days after receiving the notice of appeal), the Committee shall furnish to the Participant or Beneficiary and his representative, if any, a written
statement of the Committee’s final decision with respect to his claim, including the reasons for such decision and the particular Plan provisions upon which it is based. 

  
 44 

 Section 11 

The Trust 

Section 11.01 Creation of Trust Fund. 
 All amounts received under the Plan from an Employer and investments shall be held in a Trust Fund pursuant to the terms of this Plan and the Trust Agreement. The benefits described in this Plan shall be
payable only from the assets of the Trust Fund. Neither the Bank, any other Employer, its board of directors or trustees, its stockholders, its officers, its employees, the Committee, nor the Trustee shall be liable for payment of any benefit under
this Plan except from the Trust Fund. 
 Section 11.02 Company Stock and Other Investments. 

Trust Fund held by the Trustee shall be divided into Company Stock and investments other than Company Stock. The Trustee shall have no investment
responsibility for the portion of the Trust Fund consisting of Company Stock, but shall accept any Employer contributions made in the form of Company Stock, and shall acquire, sell, exchange, distribute, and otherwise deal with and dispose of
Company Stock in accordance with the instructions of the Committee. 
 Section 11.03 Acquisition of Company Stock.

 From time to time the Committee may, in its sole discretion, direct the Trustee to acquire Company Stock from the issuing Employer or from
shareholders, including shareholders who are or have been Employees, Participants, or fiduciaries with respect to the Plan. The Trustee shall pay for such Company Stock no more than its fair market value, which shall be determined conclusively by
the Committee pursuant to Section 9.03(d) of the Plan. The Committee may direct the Trustee to finance the acquisition of Company Stock through an Acquisition Loan subject to the provisions of Section 4.03 of the Plan. 

Section 11.04 Participants’ Option to Diversify. 
 The Committee shall provide for a procedure under which each Participant may, during the first five years of a certain six-year period, elect to have up to 25 percent of the value of his Accounts
converted into cash or other investments acceptable under Section 401(a)(28) of the Code. For the sixth year in this period, the Participant may elect to have up to 50 percent of the value of his Accounts committed to other investments. The
six-year period shall begin with the Plan Year following the first Plan Year in which the Participant has both reached aged 55 and completed 10 years of participation in the Plan; a Participant’s election to diversify his Accounts must be made
within the 90-day period immediately following the last day of each of the six Plan Years. The Committee may, in its discretion, permit a transfer of a portion of the Participant’s Accounts to the Employer’s 401(k) Plan, allow Participants
to transfer funds to an individual retirement account or take a direct distribution in order to satisfy this Section 11.04, provided such transfer is not otherwise prohibited under the Code or ERISA. The Trustee shall comply with any investment
directions received from Participants in accordance with the procedures adopted from time to time by the Committee under this Section 11.04. 

  
 45 

 Section 12 

Adoption, Amendment and Termination 
 Section 12.01 Adoption of Plan by Other Employers. 
 With the consent of the
Bank, any entity may become a participating Employer under the Plan by: 
 (a) taking such action as shall be necessary to adopt the Plan;

 (b) becoming a party to the Trust Agreement establishing the Trust Fund; and 
 (c) executing and delivering such instruments and taking such other action as may be necessary or desirable to put the Plan into effect with respect to the entity’s Employees. 

Section 12.02 Adoption of Plan by Successor. 
 In the event that any Employer shall be reorganized by way of merger, consolidation, transfer of assets or otherwise, so that an entity other than an Employer shall succeed to all or substantially all of
the Employer’s business, the successor entity may be substituted for the Employer under the Plan by adopting the Plan and becoming a party to the Trust Agreement. Contributions by the Employer shall be automatically suspended from the effective
date of any such reorganization until the date upon which the substitution of the successor entity for the Employer under the Plan becomes effective. If, within 90 days following the effective date of any such reorganization, the successor entity
shall not have elected to become a party to the Plan, or if the Employer shall adopt a plan of complete liquidation other than in connection with a reorganization, the Plan shall be automatically terminated with respect to Employees of the Employer
as of the close of business on the 90th day following the effective date of the reorganization, or as of the close of business on the date of adoption of a plan of complete liquidation, as the case may be. 

Section 12.03 Plan Adoption Subject to Qualification. 
 Notwithstanding any other provision of the Plan, the adoption of the Plan and the execution of the Trust Agreement are conditioned upon their being determined initially by the Internal Revenue Service to
meet the qualification requirements of Section 401(a) of the Code, so that the Employers may deduct currently for federal income tax purposes their contributions to the Trust and so that the Participants may exclude the contributions from their
gross income and recognize income only when they receive benefits. In the event that this Plan is held by the Internal Revenue Service not to qualify initially under Section 401(a) of the Code, the Plan may be amended retroactively to the
earliest date permitted by the Code and the applicable Treasury Regulations in order to secure qualification under Section 401(a) of the Code. If this Plan is held by the Internal Revenue Service not to qualify initially under Section

  
 46 

 
401(a) of the Code either as originally adopted or as amended, each Employer’s contributions to the Trust under this Plan (including any earnings thereon) shall be returned to it and this
Plan shall be terminated. In the event that this Plan is amended after its initial qualification and the Plan as amended is held by the Internal Revenue Service not to qualify under Section 401(a) of the Code, the amendment may be modified
retroactively to the earliest date permitted by the Code and the applicable Treasury Regulations in order to secure approval of the amendment under Section 401(a) of the Code. 
 Section 12.04 Right to Amend or Terminate. 
 The Bank intends to continue this
Plan as a permanent program. However, each participating Employer separately reserves the right to suspend, supersede, or terminate the Plan at any time and for any reason, as it applies to that Employer’s Employees, and the Bank reserves the
right to amend, suspend, supersede, merge, consolidate, or terminate the Plan at any time and for any reason, as it applies to the Employees of all Employers. No amendment, suspension, supersession, merger, consolidation, or termination of the Plan
shall reduce any Participant’s or Beneficiary’s proportionate interest in the Trust Fund, or shall divert any portion of the Trust Fund to purposes other than the exclusive benefit of the Participants and their Beneficiaries prior to the
satisfaction of all liabilities under the Plan. Except as is required for purposes of compliance with the Code or ERISA, the provisions of Section 4.04 relating to the crediting of contributions, forfeitures and shares of Company Stock released
from the Loan Suspense Account, nor any other provision of the Plan relating to the allocation of benefits to Participants, may be amended more frequently than once every six months. Moreover, there shall not be any transfer of assets to a successor
plan or merger or consolidation with another plan unless, in the event of the termination of the successor plan or the surviving plan immediately following such transfer, merger, or consolidation, each participant or beneficiary would be entitled to
a benefit equal to or greater than the benefit he would have been entitled to if the plan in which he was previously a participant or beneficiary had terminated immediately prior to such transfer, merger, or consolidation. Following a termination of
this Plan by the Bank, the Trustee shall continue to administer the Trust and pay benefits in accordance with the Plan and the Committee’s instructions. 
 Section 13 
 General Provisions 

Section 13.01 Nonassignability of Benefits. 
 The interests of Participants and other persons entitled to benefits under the Plan shall not be subject to the claims of their creditors and may not be voluntarily or involuntarily assigned, alienated,
pledged, encumbered, sold, or transferred. The prohibitions set forth in this Section 13.01 shall also apply any judgement, decree, or order (including approval of a property or settlement agreement) which relates to the provision of child
support, alimony, or property rights to a present or former spouse, child, or other dependent of a Participant pursuant to a domestic relations order, unless such judgement, decree or order is determined to be a “qualified domestic relations
order” as defined in Section 414(p) of the Code. 

  
 47 

 Section 13.02 Limit of Employer Liability. 

The liability of the Employers with respect to Participants and other persons entitled to benefits under the Plan shall be limited to making contributions
to the Trust from time to time, in accordance with Section 4 of the Plan. 
 Section 13.03 Plan Expenses. 

All expenses incurred by the Committee or the Trustee in connection with administering the Plan and Trust shall be paid by the Trustee from the Trust Fund
to the extent the expenses have not been paid or assumed by the Employers or by the Trustee. 
 Section 13.04 Nondiversion of
Assets. 
 Except as provided in Sections 5.05 and 12.03 of the Plan, under no circumstances shall any portion of the Trust Fund be
diverted to or used for any purpose other than the exclusive benefit of the Participants and their Beneficiaries prior to the satisfaction of all liabilities under the Plan. 
 Section 13.05 Separability of Provisions. 
 If any provision of the Plan is held
to be invalid or unenforceable, the other provisions of the Plan shall not be affected but shall be applied as if the invalid or unenforceable provision had not been included in the Plan. 
 Section 13.06 Service of Process. 
 The agent for the service of process upon
the Plan shall be the president of the Bank and the Trustee, or such other person as may be designated from time to time by the Bank. 

Section 13.07 Governing Law. 

The Plan is established under, and its validity, construction and effect shall be governed by the laws of the State of North Carolina to the extent those
laws are not preempted by federal law, including the provisions of ERISA. 
 Section 13.08 Special Rules for Persons Subject to
Section 16(b) Requirements. 
 Notwithstanding anything herein to the contrary, any former Participant who is subject to the
provisions of Section 16(b) of the Securities Exchange Act of 1934, who becomes eligible to again participate in the Plan, may not become a Participant prior to the date that is six months from the date such former Participant terminated
participation in the Plan. In 

  
 48 

 
addition, any person subject to the provisions of Section 16(b) of the 1934 Act receiving a distribution of Company Stock from the Plan must hold such Company Stock for a period of six
months commencing with the date of distribution. However, this restriction will not apply to Company Stock distributions made in connection with death, retirement, disability or termination of employment, or made pursuant to the terms of a qualified
domestic relations order. 
 Section 13.09 Military Service. 
 Notwithstanding any other provision of this Plan to the contrary, contributions, benefits and Service credit with respect to qualified military service will be provided in accordance with
Section 414(u) of the Code. 
 Section 13.10 Use of Electronic Media to Provide Notices and Make Participant Elections.

 Pursuant to Treasury Regulations Section 1.401(a)-21, the Plan may elect to use electronic media to provide notices required to be
provided to Participants under the Plan and will accept elections from Participants communicated to the Plan using such electronic media. 
 Section 14 
 Top-Heavy Provisions 

Section 14.01 Top-Heavy Provisions. 
 (a) Key employee. Key employee means any employee or former employee (including any deceased employee) who at any time during the Plan Year that includes the Determination Date was an officer of
the Employer having annual compensation greater than $160,000 (as adjusted under Section 416(i)(1) of the Code), a 5% owner of the Employer or a 1% owner of the Employer having annual compensation of more than $150,000. For this purpose, annual
compensation means compensation within the meaning of Section 415(c)(3) of the Code. The determination of who is a key employee will be made in accordance with Section 416(i)(1) of the Code and the applicable regulations and other guidance
of general applicability issued thereunder. 
 (b) Determination of present values and amounts. This section (ii) shall apply for
purposes of determining the present values of accrued benefits and the amounts of account balances of Participants as of the distribution date. 
  

	 	(i)	 Distributions during year ending on the Determination Date. The present values of accrued benefits and the amounts of account balances of a
Participant as of the Determination Date shall be increased by the distributions made with respect to the Participant under the Plan and any Plan aggregated with the Plan under Section 416(g)(2) of the Code during the 1-year period ending on
the Determination Date. The preceding sentence shall also apply to distributions under a terminated plan which, had 

  
 49 

	 	 
it not been terminated, would have been aggregated with the Plan under Section 416(g)(2)(A)(i) of the Code. In the case of a distribution made for a reason other than separation from
service, death or disability, this provision shall be applied by substituting “5-year period” for “1-year period”. 

  

	 	(ii)	Participants not performing services during the year ending on the Determination Date. The accrued benefits and accounts of any individual who has not performed
services for the Employer during the 1-year period ending on the Determination Date shall not be taken into account. 

Section 14.02 Plan Modifications Upon Becoming Top-Heavy. 
 (a) Minimum Accruals. Section 5.04 of the Plan will be modified to provide that the aggregate amount of Employer contributions allocated in each Plan Year to the Accounts of each Participant
who is a non-Key Employee (as defined under Section 416(i)(1) of the Code), and who is employed by an Employer as of the last day of the Plan Year, may not be less than the lesser of: 

 

	 	(i)	three percent (3%) of his Compensation for the Plan Year; and 

  

	 	(ii)	a percentage of his Compensation equal to the largest percentage obtained by dividing the sum of the amount credited to the Accounts of any Key Employee by that Key
Employee’s Compensation. 

 (b) The preceding provision will remain in effect for the period in which the Plan is top-heavy.
If, for any particular year thereafter, the Plan is no longer top-heavy, the provisions contained in this Section 14.02 shall cease to apply, except that any previously vested portion of any Account balance shall remain nonforfeitable.

  
 50

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