Document:

Form of Employee Stock Option Agreement

 EXHIBIT 10.04 
 STATE OF NORTH CAROLINA 
 COUNTY OF DAVIE 
 EMPLOYEE STOCK OPTION AGREEMENT 
 (Incentive Stock
Option)                 
 THIS EMPLOYEE STOCK OPTION
AGREEMENT (the “Agreement”) is made as of this     day of                     ,
19     (the “Date of Grant”), by and between BANK OF DAVIE, a North Carolina banking corporation (the “Bank”), and
                            , a resident of
                     County, North Carolina (the “Optionee”). 
 WHEREAS, on December 14, 1998, the Bank’s Board of Directors adopted the EMPLOYEE STOCK OPTION PLAN (the “Plan”),
subject to the approval of the Bank’s shareholders and the North Carolina Commissioner of Banks; and 
 WHEREAS, the Plan
provides that the Stock Option Committee (the “Committee”) of the Bank’s Board of Directors from time to time may grant to officers and employees of the Bank and its subsidiaries the right or option to purchase shares of the
Bank’s $5.00 par value common stock (“Common Stock”) on the terms and conditions set forth in the Plan; and 
 WHEREAS,
the Optionee currently is a full-time employee of the Bank and the Committee has selected the Optionee as an employee to whom it will grant an option to purchase Common Stock under the Plan; 
 NOW, THEREFORE, in consideration of the premises and the agreements of the parties set forth herein, the Bank and the Optionee hereby agree as
follow: 
 1. Grant of Option. Pursuant to and subject to the terms and conditions contained in the Plan and this Agreement, the
Bank hereby grants to the Optionee the right and option (the “Option”) to purchase from the Bank all or any number of an aggregate of
                     (            ) shares of Common Stock
(the “Option Stock”) which may be authorized but unissued shares or shares acquired by the Bank on the open market or in private transactions. The Option is intended to be an Incentive Stock Option (an “ISO”) as that term is
defined in the Plan. 
 The Option is granted under and pursuant to the Plan, a copy of which is attached hereto and the terms and
conditions of which are incorporated herein by reference. Capitalized terms used in this Agreement which are defined in the Plan shall have the same meanings herein as are assigned to them in the Plan. In the event any provision of this Agreement
conflicts or is inconsistent with a term or condition of the Plan, then the Plan provision shall be controlling and shall supersede the provision of this Agreement. 
 2. Approval by Shareholders and Commissioner. This Agreement and the Option described herein are expressly made subject to approval of the Plan by the Bank’s shareholders at the Bank’s next annual
meeting of shareholders following the date hereof, and to approval of the Plan by the North Carolina Commissioner of Banks upon application by the Bank. Notwithstanding anything contained herein to the contrary, the Option may not be exercised prior
to receipt of both such approvals. In the event either such approval is not obtained, then this Agreement and the Option shall, without any action by the Bank or the Optionee, become void and unenforceable and of no further force or effect.

 3. Date of Grant of Option. For purposes of the Plan and this Agreement, the Date of Grant of
the Option shall be the date of this Agreement. 
 4. Exercise Price. The Exercise Price to be paid by the Optionee for the
purchase of the Option Stock upon exercise of the Option shall be                      Dollars
($                    ) per share. 
 5. Exercise Schedule. Subject to any further restrictions contained in the Plan or this Agreement, the Optionee’s right to exercise the Option, either in whole or in part, shall be conditioned upon the Optionee’s completion
of (check one): 
  ̈  one year 
  ̈ 
 of service in the employment of the Bank following the Date of Grant (the “Waiting Period”) and,
following expiration of the Waiting Period, if any, the Option will become exercisable on the following dates as to the indicated number of shares of the Option Stock: 
  

			
	 Date
	 	 Option Stock Available
 For Exercise

 Notwithstanding anything contained herein to the contrary, the Option may not be exercised at any
time as to a fractional share. 
 6. Method of Exercise. To exercise the Option in whole or in part, the Optionee must deliver
written notice of such exercise (a “Notice of Exercise”) to the President or Secretary of the Bank. Such written notice shall be substantially in the form attached hereto as Exhibit A and shall specify the number of shares of Option Stock
to be purchased. A Notice of Exercise shall not be effective (and the Bank shall have no obligation to sell any Option Stock to the Optionee pursuant to such Notice) unless it satisfies the terms and conditions contained in the Plan and this
Agreement and actually is received by the Bank prior to the Expiration Date or any earlier termination of the Option. 
 Notwithstanding
anything contained herein to the contrary, the Optionee may not exercise the Option to purchase less than one hundred (100) shares, unless the Committee otherwise approves or unless the partial exercise is for all remaining shares of Option
Stock available under the Option. Following receipt from the Optionee of a valid and effective Notice of Exercise and full payment of the Exercise Price relating to a number of the shares of Option Stock being purchased, a stock certificate
representing that number of shares shall be issued and delivered by the Bank to the Optionee as soon as practicable; provided however that, the Bank shall have the right and discretion to hold any shares purchased upon exercise of the Option in
escrow for a period ending on the later of (i) two years from the Date of Grant of the Option, or (ii) one year after issuance of the stock upon exercise of the Option, for the sole purpose of informing the Bank of a
disqualifying disposition within the meaning of Section 422 of the Internal Revenue Code of 1986. During any such escrow period, the Optionee shall have all rights of a shareholder with respect to the Option Stock purchased, including but not
limited to the right to vote, receive dividends on and to sell such stock. 
 7. Payment. The Exercise Price of Option Stock being
purchased upon an exercise of the Option (in part or in whole) shall be paid by the Optionee in full at the time of such exercise. Such payment shall be made in the manner described in the Plan and shall accompany the Notice of Exercise. 

 

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 The Option shall not be considered to have been properly exercised as to any Option Stock, and no Option Stock shall be
issued or delivered, until full payment of the Exercise Price therefor has been made. 
 8. Expiration or Termination. 
 (a) Expiration Date. Notwithstanding anything contained herein to the contrary, to the extent the Option shall not previously have been exercised
in the manner required by or otherwise terminated as provided in the Plan or this Agreement, it shall expire and terminate at 5:00 P.M. on the “Expiration Date” which, for purposes of this Agreement, shall be
                    , 20            . 
 (b) Other Termination. The Option otherwise shall terminate prior to the Expiration Date in the events and upon the occurrences described in the
Plan. 
 (c) Effect of Termination or Expiration of Option. Upon the expiration or termination of all or any portion of the Option,
it shall, without any further act by the Bank or the Optionee, no longer be exercisable or of any force or effect and shall no longer confer any rights to any person to purchase shares of Common Stock under the Plan or this Agreement. 
 9. Effect of Agreement on Employment Status of Optionee. Neither the Plan, this Agreement nor the grant of the Option is intended or shall be
deemed or interpreted to constitute an employment agreement or to confer upon the Optionee any right of employment with the Bank, including without limitation any right to continue in the employ of the Bank, or to interfere with, restrict or
otherwise limit in any way the right of the Bank to discharge or terminate the employment of the Optionee at any time for any reason whatsoever, with or without Cause. 
 10. Rights as a Shareholder. Neither the Optionee nor any other person shall have any rights as a stockholder with respect to any shares of Option Stock until the Option has been validly exercised in the manner
described in the Plan and this Agreement, full payment of the Exercise Price has been made for such shares, and a stock certificate representing the Option Stock purchased upon such exercise has been registered on the Bank’s stock records in
the name of and delivered to the Optionee or other person entitled thereto. Except to the extent of adjustments made as described in the Plan, no adjustment on behalf of the Optionee shall be made for dividends (ordinary or extraordinary, whether in
cash, securities or other property), distributions or other rights for which the record date for determining the shareholders entitled to receive the same is prior to the date of registration and delivery of the stock certificate(s) representing the
Option Stock. 
 11. Listing and Registration of Option Shares. If in the opinion of legal counsel for the Bank the issuance or sale
of any shares of Option Stock upon the exercise of the Option would not be lawful without registration under the Securities Act of 1933 (the “1933 Act”) or without some other action being taken or for any other reason, or would require the
Bank to obtain approval from any governmental authority or regulatory body having jurisdiction deemed by such counsel to be necessary to such issuance or sale, then the Bank shall not be obligated to issue or sell any Option Stock to the Optionee or
any other authorized person unless a registration statement that complies with the provisions of the 1933 Act in respect of such shares is in effect at the time thereof, or all other required or appropriate action has been taken under and pursuant
to the terms and provisions of the 1933 Act or other applicable law, or the Bank receives evidence satisfactory to such counsel that the issuance and sale of such shares, in the absence of an effective registration statement or other action, would
not constitute a violation of the 1933 Act or other applicable law, or unless any such required approval shall have been obtained. The Bank is in no event obligated to register any such shares, to comply with any exemption from registration
requirements or to take any other action which may be required in order to permit, or to remedy or remove any prohibition or limitation on, the issuance or sale of such shares to the Optionee or other authorized person. 
  

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 As a condition of the exercise of the Option, the Bank may require that the Optionee execute one or more
undertakings in such form as it shall prescribe to the effect that such shares are being acquired for investment purposes only and not with a view to the distribution or resale thereof. 
 Notwithstanding anything contained herein to the contrary, it is understood and agreed that the Bank (or any successor in interest to the Bank) shall
not be required to take any action under the Plan or this Agreement if: 
 (a) the Bank is declared by any Regulatory Authority to be
insolvent; or, 
 (b) in the opinion of counsel to the Bank, such payment or action: (i) would be prohibited by or would
violate any provision of state or federal law applicable to the Bank or any of its subsidiaries, including without limitation the Federal Deposit Insurance Act as now in effect or hereafter amended; (ii) would be prohibited by or would
violate any applicable rules, regulations, orders or statements of policy, whether now existing or hereafter promulgated, of any regulatory authority; or, (iii) otherwise would be prohibited by any regulatory authority. 
 12. Payment of Taxes. The Optionee shall be responsible for all federal, state, local or other taxes of any nature as shall be imposed pursuant to
any law or governmental regulation or ruling on the Option or the exercise thereof or on any income which the Optionee is deemed to recognize in connection with the Option. If the Bank shall determine to its reasonable satisfaction that the Bank is
required to pay or withhold the whole or any part of any estate, inheritance, income, or other tax with respect to or in connection with the Option or the exercise thereof, or on the Optionee’s resale of any shares of Option Stock, then the
Bank shall have the full power and authority to withhold and pay such tax out of any shares of Option Stock being purchased by the Optionee or from the Optionee’s salary or any other funds otherwise payable to the Optionee, or, prior to and as
a condition of exercising such Option, the Bank may require that the Optionee pay to it in cash the amount of any such tax which it, in good faith, deems itself required to withhold. 
 13. Limit on Grant of ISOs. Notwithstanding anything contained in this Agreement to the contrary (including the number of shares of Option Stock
provided for herein), the aggregate Fair Market Value (determined as of the Date of Grant) of the Option Stock for which the Option may be exercised for the first time in any calendar year (including ISOs granted under all option plans of the Bank)
shall not exceed $100,000; and, if this Agreement covers a number of shares of Option Stock that would result in the Option exceeding that limitation, then the Committee shall have the right and discretion to reduce the number of Option Shares,
and/or to modify the Exercise Schedule, provided above such that the Option qualifies as an ISO. 
 14. Nontransferability. The
Option shall not be assignable or transferable except by will or by the laws of descent and distribution, and, during the lifetime of the Optionee, may be exercised only by him or her. More particularly, but without limiting the generality of the
foregoing, the Option may not be sold, assigned, transferred (except as noted herein), pledged or hypothecated in any way and shall not be subject to execution, attachment or similar process. 
 15. Notices. Except as otherwise provided herein, any notice which the Bank or the Optionee may be required or permitted to give to the other
under the Plan or this Agreement shall be in writing and shall be deemed duly given when delivered personally or deposited in the United States mail, first class postage prepaid, and properly addressed. Notice, if to the Bank, shall be sent to its
President at the address of the Bank’s then current corporate office. Any notice sent by mail by the Bank to the 
  

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 Optionee shall be sent to the most current address of the Optionee as reflected on the records of the Bank or its
Subsidiaries as of the time said notice is required. If the Optionee has died, any such notice shall be given to the Optionee’s personal representative if such representative has delivered to the Bank evidence satisfactory to the Bank of such
representative’s status as such and has informed the Bank of the address of such representative by notice pursuant to this Paragraph 15. 
 Notwithstanding anything contained herein to the contrary, a Notice of Exercise shall be effective only upon actual receipt thereof by the Bank as provided in Paragraph 6 above. 
 16. Severability. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be valid and enforceable
under applicable law, but, in the event that any provision hereof shall be held to be invalid or unenforceable, the remaining provisions shall continue to be in full force and effect and this Agreement shall continue to be binding on the parties
hereto as if such invalid or unenforceable provision or part hereof had not been included herein. 
 17. Modification of Agreement;
Waiver. Except as otherwise provided herein, this Agreement may be modified, amended, suspended, or terminated, and any terms or conditions may be waived, but only by written instrument signed by each of the parties hereto. No waiver
hereunder shall constitute a waiver with respect to any subsequent occurrence or other transaction hereunder or of any other provision hereof. 
 18. Captions and Headings; Gender and Number. Captions and paragraph headings used herein are for convenience only, do not modify or affect the meaning of any provision herein, are not a part hereof, and shall not serve as a
basis for interpretation or in construction of this Agreement. As used herein, the masculine gender shall include the feminine and neuter, the singular number the plural, and vice versa, whenever such meanings are appropriate. 
 19. Governing Law; Venue and Jurisdiction. The validity, interpretation and administration of this Agreement, and the rights of any and all
persons having or claiming to have any interest hereunder, shall be determined exclusively in accordance with the laws of the State of North Carolina. Without limiting the generality of the foregoing, the period within which any action in connection
with this Agreement must be commenced shall be governed by the laws of the State of North Carolina, without regard to the place where the act or omission complained of took place, the residence of any party to such action, or the place where the
action may be brought or maintained. The parties hereto agree that any suit or action relating to this Agreement shall be instituted and prosecuted in the courts of Davie County, North Carolina, and each party hereby does waive any right or defense
relating to such jurisdiction and venue. 
 20. Binding Effect. This Agreement shall be binding upon and shall inure to the
benefit of the Bank, its successors and assigns, and shall be binding upon and inure to the benefit of the Optionee, his heirs, legatees, personal representatives, executors, and administrators. 
 21. Entire Agreement. This Agreement (which incorporates the terms and conditions of the Plan) constitutes and embodies the entire
understanding and agreement of the parties hereto and, except as otherwise provided hereunder, there are no other agreements or understandings, written or oral, in effect between the parties hereto relating to the matters addressed herein.

 22. Counterparts. This Agreement may be executed in any number of counterparts, each of which when executed and delivered
shall be deemed an original, but all of which taken together shall constitute one and the same instrument. 
  

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 IN WITNESS WHEREOF, the Bank has caused this instrument to be executed in its corporate name by
its President, or one of its Vice Presidents, and attested by its Secretary or one of its Assistant Secretaries, and its corporate seal to be hereto affixed, all by authority of its Board of Directors first duly given, and the Optionee has hereunto
set his or her hand and adopted as his or her seal the typewritten word “SEAL” appearing beside his or her name, all done this the day and year first above written. 
  

									
	 	 	 	 	BANK OF DAVIE	 	 
					
	 [CORPORATE SEAL]
	 		 	By:	 	  
	 	
		 		 	Title:	 	  
	 	
	ATTEST:	 		 		 		 	
					
	  
	 		 		 		 	
	                                    
Secretary	 		 		 		 	
			
		 		 	OPTIONEE:
				
		 		 	  
	 	(SEAL)
		 		 	                    _______________________________________	 	

  

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 EXHIBIT A 
 NOTICE OF EXERCISE OF 
 EMPLOYEE STOCK OPTION 
  

	To:	The Stock Option Committee of the 

 Board of
Directors of Bank of Davie 
 The undersigned hereby elects to purchase shares of Common Stock of Bank of Davie (the “Bank”)
pursuant to the Option granted to the undersigned pursuant to the Employee Stock Option Plan (the “Plan”) and that certain Stock Option Agreement between the Bank and the undersigned dated , 1999. 
 The undersigned elects to purchase
                     whole shares of Common Stock having an aggregate Exercise Price of
$                     which is tendered herewith: 
  

	 	 ̈	in cash in the amount of $                    ;

  

	 	 ̈	by bank check or money order in the amount of $                     ;

  

	 	 ̈	                                    
     

 This the     day of
                    ,             . 
  

	
	  
 OptioneeDirector Stock Option Plan, as amended

 EXHIBIT 10.05 
 BANK OF DAVIE 
 DIRECTOR STOCK OPTION PLAN 
 BANK OF DAVIE (the “Bank”) hereby adopts this DIRECTOR STOCK OPTION PLAN (the “Plan”) as further described herein.

 ARTICLE I 
 PURPOSE
AND SCOPE OF PLAN 
 1.1 Purpose. 
 The purpose of the
Plan is to encourage the continued service of Directors of the Bank or any company which is a subsidiary of the Bank (a “Subsidiary”), and to provide an additional incentive for such Directors to expand and improve the profits and
prosperity of the Bank and its Subsidiaries, by granting them options to purchase shares of the Bank’s common stock. The Plan also will assist the Bank and its subsidiaries in recruiting and retaining persons to serve as Directors of the Bank
and its Subsidiaries. 
 1.2 Stock Subject to Plan. 
 Pursuant to and in accordance with the terms of the Plan, options (“Options”) may be granted from time to time to purchase shares of the Bank’s common stock, $5.00 par value per share (“Common Stock”). 

The aggregate number of shares of Common Stock which may be sold upon the exercise of Options granted under the Plan is 74,405 shares, which maximum number is subject
to adjustment as provided in Paragraph 6.1 hereof. Shares of Common Stock sold by the Bank upon the exercise of Options granted hereunder, at the sole discretion of the Bank, may be issued from the Bank’s authorized but unissued shares, or be
issued and outstanding shares purchased by the Bank on the open market or in private transactions. In the event an Option granted under the Plan shall expire or terminate for any reason without having been exercised in full, then, to the extent the
Plan shall remain in effect, the shares covered by the unexercised portion of such Option shall again be available for the grant of Options under the Plan. 
 1.3 Effective Date. 
 The Plan shall become effective as of December 14, 1998 (the “Effective Date,” which is the date of
adoption of the Plan by the Bank’s Board of Directors); provided, however, that notwithstanding anything contained herein to the contrary, the Plan shall be subject to approval of the North Carolina Commissioner of Banks and other banking
regulators to the extent required by law and to approval of the Bank’s shareholders by a vote of the holders of at least two-thirds of the outstanding shares of the Bank’s Common Stock at a meeting of the Bank’s shareholders held in
accordance with North Carolina law. Options may be granted pursuant to the Plan prior to receipt of such approvals, but any such Options granted shall be subject to, and may not become exercisable until, receipt of such approvals. 
 1.4 Termination Date. Unless sooner terminated as provided herein, the Plan shall terminate at 5:00 P.M. on December 13, 2008 (the “Termination
Date”). Following the Termination Date, no further Options may be granted under the Plan, but such termination shall not effect any Option granted prior to the Termination Date. 

 ARTICLE II 
 DEFINITIONS 
 2.1 Bank. “Bank” refers to Bank of Davie and to any successor to the Bank which shall
have assumed or become liable for the Bank’s obligations pursuant to any Option granted or Option Agreement entered into pursuant to the Plan. 
 2.2
Board. “Board” refers to the Bank’s Board of Directors. 
 2.3 Committee. “Committee” refers to the committee of and
appointed or designated by the Board to administer the Plan as described in Article III below. 
 2.4 Common Stock. “Common Stock” refers to
the common stock of the Bank, par value $5.00 per share. 
 2.5 Date of Grant. The “Date of Grant” of an Option refers to the effective date
of action by the Committee granting such Option. 
 2.6 Director. “Director” refers to a member of the Board or of the Board of Directors of
any of the Bank’s Subsidiaries. 
 2.7 Exercise Price. “Exercise Price” refers to the price per share to be paid by an Optionee for the
purchase of Option Stock upon the exercise of an Option. 
 2.8 Expiration Date. “Expiration Date” refers to the date set by the Committee
at which time any unexercised portion of an Option automatically will terminate and be of no further force or effect. 
 2.9 Modification, Extension or
Renewal. “Modification” refers to any change in an Option which alters or modifies the original terms, conditions or benefits of the Option granted to the Optionee. “Extension” refers to the granting to the Optionee of an
additional period of time within which to exercise the Option beyond the Expiration Date originally prescribed in the Option Agreement. “Renewal” refers to the granting of an Option to the Optionee with the same rights and privileges and
on the same terms and conditions as contained in an original Option after expiration or termination of the original Option. 
 2.10 Non-Employee
Director. “Non-Employee Director” refers to a member of the Board who satisfies the definition of that term contained in Rule 16b-3(b)(3) under the Securities Exchange Act of 1934, as such rule may be amended from time to time.

 2.11 Option. “Option” refers to a right granted to a Director by the Bank pursuant to the Plan to purchase shares of Common Stock at the
Exercise Price set by the Committee for such Option and on the terms and conditions set forth herein and in the Option Agreement relating to such Option. 
 2.12 Option Agreement. “Option Agreement” refers to a formal written agreement executed between the Bank and an Optionee setting forth the terms and conditions of an Option. 
 2.13 Option Stock. “Option Stock” refers to the shares of Common Stock covered by an Option and which may be purchased by the Optionee upon the
exercise, in whole or in part, of such Option. 
 2.14 Optionee. “Optionee” refers to a Director to whom an Option is granted pursuant to
the Plan. 
  

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 2.15 Regulatory Authority. “Regulatory Authority” refers to any governmental agency or authority having
jurisdiction over the Bank or its Subsidiaries, including but not limited to the Federal Deposit Insurance Corporation, the North Carolina Banking Commissioner, the North Carolina State Banking Commission, the Federal Reserve Board. 
 ARTICLE III 
 PLAN ADMINISTRATION

 3.1 General. 
 The Plan shall be administered by
the Committee which shall be composed solely of two or more Non-Employee Directors. Members of the Committee shall serve at the pleasure of the Board, and the Board, from time to time and at its discretion, may remove members from (with or without
cause) or add members to the Committee or fill any vacancies on the Committee, however created. 
 3.2 Duties. 
 In its administration of the Plan, the Committee shall have the authority, power and duty: 
  

	(a)	to make any and all determinations regarding persons who are eligible to receive Options under the Plan; 

  

	(b)	to construe and interpret the terms and provisions of the Plan and any and all Option Agreements entered into pursuant to the Plan; 

  

	(c)	to make, adopt, amend, rescind, and interpret such rules and regulations not inconsistent with the Plan or law as it from time to time deems reasonable and necessary for the
interpretation and administration of the Plan; 

  

	(d)	to prescribe the form or forms of the Option Agreements and other instruments evidencing or relating to any Options granted under the Plan and of any other instruments
required under the Plan and to change such forms from time to time; 

  

	(e)	to determine: 

  

	 	(i)	the Directors to whom Options shall be granted pursuant to the Plan and the timing of such grant or grants, and to cause Options to be granted to Directors it selects;

  

	 	(ii)	the number of shares of Option Stock to be covered by each Option granted; 

  

	 	(iii)	the Exercise Price to be paid for Option Stock upon exercise of the Option as set forth in the Option Agreement and as determined in accordance with Paragraph 4.3 hereof;

  

	 	(iv)	the Expiration Date of each Option granted, and the period within which any such Option may be exercised; 

  

	 	(v)	any other term and/or condition of each Option (which need not be identical from Option to Option) so long as not inconsistent with the Plan; and, 

 

	(f)	to make all other determinations and take all other actions provided for herein or deemed by it, in its discretion, to be necessary or advisable to administer the Plan in a
proper and effective manner. 

  

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 3.3 Meetings and Voting. 
 The Committee shall select one of its members as Chairman and shall hold meetings at such times and places as it shall deem necessary or desirable. A majority of the members of the Committee shall constitute a quorum for all matters with
respect to administration of the Plan, and acts of a majority of the members of the Committee present at meetings at which a quorum is present, or acts reduced to and approved in writing by all of the members of the Committee without a meeting,
shall be valid acts of the Committee. 
 3.4 Effect of Committee Action. 
 All actions, decisions and determinations of the Committee in connection with the grant of Options or the administration, interpretation or construction of, or questions or other matters concerning, the Plan or any
Option granted, shall (i) be made consistent and in accordance with the terms of the Plan, and (ii) shall be final, conclusive and binding on all persons, including the Bank, its shareholders, Optionees and any other person
claiming any interest in any Option; provided, however, that any action, decision, interpretation or determination, other than those respecting the actual grant of Options, shall be subject to review by the Board of Directors either on its own
initiative, at the request of the Committee or on application of any aggrieved party. In such a case, the determination of the Board of Directors on such review shall be final and binding on all affected parties. 
 3.5 Indemnification. 
 To the extent permitted by applicable law, and
in addition to such other rights of indemnification that members of the Committee may have as Directors of the Bank, the members of the Committee shall be indemnified by the Bank against the reasonable expenses, including attorneys’ fees,
actually and necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal thereof, to which they or any of them may be made a party by reason of any action taken or omitted in good faith
under or in connection with administration of the Plan or any Option granted hereunder and against all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by the Bank) or paid by
them in satisfaction of a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that any such Committee member is liable for gross negligence or misconduct
in the performance of his duties; provided, however, that within thirty (30) days after institution of any such action, suit or proceeding, such Committee member(s) shall in writing offer the Bank the opportunity, at its own expense, to handle
and defend same. 
 ARTICLE IV 
 GRANT AND TERMS OF OPTIONS 
 4.1 Authorization to Grant Options. 
 Pursuant to the Plan, from time to time prior to the Termination Date the Bank may grant Options to Directors to purchase shares of Common Stock. Options may only be granted by action of the Committee, and no person
shall have any rights under the Plan or with respect to any Option except pursuant to such action of the Committee. 
 4.2 Number of Shares.

 The number of shares of Option Stock covered by each Option shall be set by the Committee at the time such Option is granted and shall be specified in
the Option Agreement evidencing such Option; provided, 
  

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 however, that the number of shares of Option Stock covered by Options granted from time to time to any one Director under
the Plan may not exceed 40% of the aggregate number of shares of Common Stock originally available for the grant of Options under the Plan from time to time. The number of shares of Option Stock covered by each Option shall be subject to adjustment
in the manner described in Paragraph 6.1 below. 
 4.3 Exercise Price. 
 At the time an Option is granted, the Committee shall set the Exercise Price applicable to such Option. The Exercise Price shall be determined by the Committee in the manner described below and shall be specified in
the Option Agreement evidencing the Option. The Exercise Price applicable to each Option shall be subject to adjustment in the manner described in Paragraph 6.1 below. 
 The Exercise Price for each share of Option Stock covered by an Option shall not be less than one hundred percent (100%) of the fair market value of one share of the Common Stock on the Date of Grant of such
Option (the “Fair Market Value”). The Fair Market Value on any particular date shall be, (i) if the Common Stock is not then listed on the Nasdaq Stock Market, the fair market value of a share of the Common Stock as determined
by the Committee in its sole discretion in such manner as it shall deem to be reasonable and appropriate, or, (ii) if the Common Stock is listed on the Nasdaq Stock Market, the average of the bid and asked prices for a share of the
Common Stock as quoted by Nasdaq on such date.
 4.4 Option Agreements. 
 Each Option granted under the Plan shall be evidenced by an Option Agreement which shall be executed and delivered by the Optionee and by or on behalf of the Bank and which shall (i) contain such
information as is provided or permitted herein to be contained in the Option Agreement, and (ii) not contain any provisions inconsistent with the Plan. Following the execution of an Option Agreement evidencing an Option, such Option
shall be effective as of the Date of Grant of such Option. 
 ARTICLE V 
 EXERCISE OF OPTIONS 
 5.1 Term; Conditions on Exercise; Expiration or Termination.

 The Expiration Date of each Option shall be set by the Committee at the time the Option is granted and shall be specified in the Option Agreement
evidencing the Option, but in no event shall be more than ten years following the Date of Grant of the Option. 
 Subject to the other terms and conditions
contained in the Plan, each Option may be exercised by the Optionee at such times or intervals and on such other terms and conditions (if any) as are determined by the Committee and specified in the Option Agreement evidencing the Option.

 Notwithstanding anything contained herein or in any Option Agreement to the contrary, to the extent that an Option shall not previously have been
exercised in the manner required by the Plan, it shall expire and terminate at 5:00 P.M. on its Expiration Date. In addition to the termination provisions set forth above, Options granted pursuant to the Plan shall terminate or may be terminated as
provided in Paragraphs 5.6 and 6.1 below. Upon the expiration or termination of all or any portion of an Option, such Option or portion thereof shall, without any further act by the Bank, expire and no longer be exercisable or confer any rights to
any person to purchase shares of Common Stock under the Plan. 
  

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 5.2 Notice of Exercise. 
 To exercise an Option in whole or in part, the Optionee or other person then entitled to exercise the Option or portion thereof shall notify the Bank by delivering written notice of such exercise (a “Notice of Exercise”) to the
President or the Secretary of the Bank. Such written notice shall be substantially in the form attached hereto as Exhibit A and shall specify the number of shares of Option Stock to be purchased. A Notice of Exercise shall not be effective (and the
Bank shall have no obligation to sell any Option Stock to the Optionee pursuant to such Notice) unless it satisfies the terms and conditions set forth herein and actually is received by the Bank as provided above prior to the Expiration Date or
other termination of the Option to be exercised. 
 In the event an Option or portion thereof is being exercised by a person other than the Optionee (as
provided in Paragraph 5.6(c) below), the Notice of Exercise shall be accompanied by appropriate proof of the right of such person(s) to exercise the Option. 
 5.3 Payment Upon Exercise. 
 The Exercise Price of Option Stock being purchased upon the exercise of an Option (in part or in whole) shall be
paid by the Optionee in full at the time of such exercise. Such payment may be made (i) in cash, (ii) by official bank check, bank money order or other certified funds, or (iii) in the discretion of the Committee,
by a combination thereof. No Option Stock shall be issued or delivered until full payment of the Exercise Price therefor has been made. 
 5.4
Restrictions. 
 At the time an Option is granted, the Committee shall have the authority, in its sole discretion, to impose restrictions of any nature on
the exercise of such Option (including restrictions in the form of a schedule by which an Option becomes exercisable in increments over a period of time) and on the Option Stock acquired by the Optionee upon such exercise. Without limiting the
generality of the foregoing, the Committee may impose conditions restricting absolutely the transferability of Option Stock acquired through exercise of any Option for such periods as the Committee may determine. Any such restrictions imposed by the
Committee shall be specified in the Option Agreement. 
 5.5 Nontransferability. 
 Options granted hereunder shall not be assignable or transferable except by will or by the laws of descent and distribution, and, during the lifetime of the Director, be exercised only by him. More particularly, but
without limiting the generality of the foregoing, an Option may not be sold, assigned, transferred (except as noted herein), pledged or hypothecated in any way and shall not be subject to execution, attachment or similar process. 
 5.6 Termination of Service. 
  

	(a)	Voluntary and Involuntary Terminations. In the event an Optionee’s service as a Director shall terminate or be terminated prior to the Expiration Date of his or her
Option for any reason other than his or her death or “Disability” (as defined below), then the status of the Optionee’s Option shall be as specified below. 

  

	 	(i)	If, prior to the Expiration Date of his or her Option, an Optionee voluntarily terminates his or her service as a Director other than as a result of “Retirement”
(as defined below) or declines to stand for reelection as a Director at the expiration of any term of office (in either case other than as a result of 

  

 6 

 “Retirement” as defined below), the Option shall remain in effect and, to the extent it shall
not previously have been exercised, the Optionee shall have the right to exercise the Option at any time before but not later than 5:00 P.M. on the 90th day following the effective date of such termination of service (but not later than the
Expiration Date of the Option) in accordance with the terms of the Plan, and, to the extent not so exercised, at that time the Option shall terminate and be of no further force or effect. 
  

	 	(ii)	If, prior to the Expiration Date of his or her Option, an Optionee voluntarily terminates his or her service as a Director as a result of “Retirement” (as defined
below), the Option shall remain in effect and, to the extent it shall not previously have been exercised, the Optionee shall have the right to exercise the Option at any time before but not later than 5:00 P.M. on its Expiration Date in accordance
with the terms of the Plan and, to the extent not so exercised, at that time the Option shall terminate and be of no further force or effect. 

 The voluntary termination of an Optionee’s service as a Director after his 65th birthday, and whether during or at the conclusion of a term of office, shall be deemed to be a “Retirement” for purposes
of the Plan. 
  

	 	(iii)	If, prior to the Expiration Date of his or her Option, an Optionee’s service as a Director is terminated as a result of his or her removal by shareholders, or as a
result of his or her failure to be nominated for reelection or to be reelected by shareholders as a Director, the Option shall remain in effect and, to the extent it shall not previously have been exercised, the Optionee shall have the right to
exercise the Option at any time before but not later than 5:00 P.M. on the 90th day following the effective date of such termination of service (but not later than the Expiration Date of the Option) and, to the extent not so exercised, at that time
the Option shall terminate and be of no further force or effect. 

  

	(b)	Disability of Optionee: If, prior to the Expiration Date of his or her Option, an Optionee becomes “Disabled” (as defined below) and, as a result, his or her
service as a Director is terminated, the Option shall remain in effect and, to the extent it shall not previously have been exercised, the Optionee shall have the right to exercise the Option at any time before but not later than the 90th day
following the effective date of such termination (but not later than the Expiration Date of the Option) in accordance with the terms of the Plan, and, to the extent not so exercised, at that time the Option shall terminate and be of no further force
or effect. For purposes of this Paragraph 5.6(b), the determination of whether an Optionee shall be considered “Disabled” shall be within the sole discretion of the Committee. 

  

	(c)	Death of Optionee: If, prior to the Expiration Date of his or her Option, an Optionee shall die while serving as a Director, then, following the date of the Optionee’s
death, the Option shall remain in effect and, to the extent it shall not previously have been exercised, the Optionee’s designated beneficiary (determined either by will or other writing delivered to the Committee in advance), or if no
designated beneficiary, the personal representative of his estate, shall have the right to exercise the Option at any time before but not later than 5:00 P.M. on the Expiration Date of the Option in accordance with the terms of the Plan and, to the
extent not so exercised, at that time the Option shall terminate and be of no further force or effect. Any references herein to an Optionee shall be deemed to include any person entitled to exercise an Option after the death of such Optionee under
the terms of this Plan. 

  

 7 

 5.7 Modification, Extension and Renewal of Options. 
 Subject to the provisions of Paragraph 6.1 below, any Option may be Modified, Extended or Renewed (as those terms are defined in Article II) only upon the agreement of the Committee and the Optionee. Any such
agreement shall be in the form of a written amendment to the Option Agreement evidencing the Option being Modified, Extended or Renewed and which shall set forth the terms of any such Modification, Extension or Renewal. 
 5.8 Other Provisions. 
 In addition to the items required to be in the
Option Agreement evidencing an Option, such Option Agreement may contain such other terms, conditions and provisions applicable to such Option or the exercise thereof (including any and all limitations or restrictions as shall be necessary to comply
with any applicable federal and state securities laws and regulations) as the Committee shall, at its sole discretion, deem necessary or desirable; provided, however, that the Committee may not impose any such terms, conditions or provisions that
are inconsistent with any provisions of the Plan. 
 5.9 Issuance of Option Stock. 
 A stock certificate representing the number of shares of Option Stock purchased by the Optionee upon the proper exercise of an Option shall be issued and delivered by the Bank as soon as practicable after receipt of a
valid and effective Notice of Exercise and full payment of the Exercise Price relating to those shares. Such certificate shall be delivered to or on the written order of the person exercising the Option. 
 ARTICLE VI 
 GENERAL PROVISIONS

 6.1 Adjustment of Options. 
  

	(a)	Changes in Capitalization; Stock Splits and Dividends. In the event of (i) any dividend payable by the Bank in shares of Common Stock, or (ii) any
recapitalization, reclassification, split-up, consolidation or combination of, or other change in or offering of rights to the holders of, Common Stock, or (iii) an exchange of the outstanding shares of Common Stock for a different
number or class of shares of stock or other securities of the Bank in connection with a merger, consolidation or other reorganization of or involving the Bank (provided the Bank shall be the surviving or resulting corporation in any such merger or
consolidation), then the Committee shall, in such a manner as it shall determine in its sole discretion, appropriately adjust the number and class or kind of shares which may be issued under the Plan and of the securities which shall be subject to
outstanding Options and/or the Exercise Price applicable to any outstanding Option, all computed on a basis prior to such event. However, in no event shall any such adjustment change the aggregate Exercise Price for Option Stock to be purchased upon
the exercise of any Option. 

 In the event of an increase in the number of outstanding shares of the Bank’s Common Stock
in connection with any of the events described above, then, at the Committee’s option and discretion, the aggregate number of shares of Common Stock authorized to be issued under the Plan may be increased by an amount equal to 10% of the number
of additional shares issued by the Bank in connection with such event. 
 Subject to review by the Board of Directors of the Bank, any such
adjustments made by the Committee shall be consistent with changes in the Bank’s outstanding Common Stock resulting from the above events and, when made, shall be final, conclusive and binding on all persons, 
  

 8 

 including, without limitation, the Bank, its shareholders and each Optionee or other person having any
interest in any Option so adjusted. Any fractional shares resulting from any such adjustment shall be eliminated. 
  

	(b)	Dissolution; Merger or Consolidation; Sale of Assets. In the event of a dissolution or liquidation of the Bank, the sale of substantially all the Bank’s assets, or a
merger or consolidation of the Bank with or into any other corporation or entity (or any other such reorganization or similar transaction) in which the Bank is not the surviving or resulting corporation, and if a provision is not made in such
transaction for the continuance of this Plan or the assumption of Options by any successor to the Bank or for the substitution for Options of new options covering shares of any successor corporation or a parent or subsidiary thereof, then, in such
event, and to the extent such Options have not previously been exercised, all rights of Optionees pursuant to all outstanding Options shall terminate and be of no further effect immediately prior to the effective time of such dissolution,
liquidation, sale, merger, consolidation or other reorganization (or at such other time and pursuant to such rules and regulations as the Committee shall determine and promulgate to the Optionees). However, to the extent such Options shall not
previously have been exercised, and notwithstanding any provisions of the Plan or any Option Agreement to the contrary, each such Option shall become exercisable, and may be exercised, in full immediately prior to the effective time of any such
event. The Committee shall give each Optionee at least ninety (90) days prior written notice of the effective time of an event which gives rise to an immediate purchase right under this Paragraph 6.1. 

  

	(c)	Miscellaneous. The grant of an Option shall not affect in any way the right or power of the Bank to (i) enter into or effect any adjustment, recapitalization,
reclassification, reorganization or any other change in the Bank’s capital or business structure or its business, (ii) to merge or consolidate, or to dissolve, liquidate, sell or transfer all or any part of its business or assets,
or (iii) to issue bonds, debentures, preferred or other preference stock ahead of or affecting Common Stock or the rights thereof. 

 6.2 Rights as a Shareholder. 
 Neither an Optionee nor any other person shall have any rights as a stockholder with respect to any shares of
Option Stock covered by an Option until such Option shall have been validly exercised in the manner described herein and in the Option Agreement relating to such Option, full payment of the Exercise Price has been made for such shares, and a stock
certificate representing the Option Stock purchased upon such exercise shall have been registered on the Bank’s stock records in the name of and delivered to such person. Except to the extent of adjustments made pursuant to Paragraph 6.1 above,
no adjustment on behalf of the Optionee shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property), distributions or other rights for which the record date for determining the shareholders entitled to
receive the same is prior to the date of registration and delivery of the stock certificate(s) representing the Option Stock. 
 6.3 No Right to Continued
Service. 
 Neither the Plan nor the grant of an Option, nor any Option Agreement evidencing any such Option, is intended or shall be deemed or
interpreted to confer upon an Optionee any right of continued service as a Director or to interfere with, restrict or otherwise limit in any way the right of the Bank or any Subsidiary or their shareholders to decline to nominate such person for
reelection as a Director, to reelect such person as a Director, or to remove such person from office in accordance with applicable law. 
  

 9 

 6.4 Legal Restrictions. 
 If in the opinion of legal counsel for the Bank the issuance or sale of any shares of Option Stock by the Bank pursuant to the exercise of an Option would not be lawful without registration under the Securities Act of 1933 (the “1933
Act”) or without some other action being taken, or for any other reason, or would require the Bank to obtain approval from any governmental authority or regulatory body having jurisdiction deemed by such counsel to be necessary to such issuance
or sale, then the Bank shall not be obligated to issue or sell any Option Stock pursuant to the exercise of any Option to any Optionee or to any other authorized person unless a registration statement that complies with the provisions of the 1933
Act in respect of such shares is in effect at the time thereof and all other required or appropriate action has been taken under and pursuant to the terms and provisions of the 1933 Act or other applicable law, or the Bank receives evidence
satisfactory to such counsel that the issuance and sale of such shares, in the absence of an effective registration statement or other action, would not constitute a violation of the 1933 Act or other applicable law, or unless any such required
approval shall have been obtained. The Bank is in no event obligated to register any such shares, to comply with any exemption from registration requirements or to take any other action which may be required in order to permit, or to remedy or
remove any prohibition or limitation on, the issuance or sale of Option Stock to any Optionee or other authorized person. 
 The Committee, as a condition of
the grant of an Option and/or the exercise thereof, may require that the Optionee execute one or more undertakings in such form as the Committee shall prescribe to the effect that such shares are being acquired for investment purposes only and not
with a view to the distribution or resale thereof. 
 Notwithstanding anything contained herein to the contrary, it is understood and agreed that neither the
Bank nor any of its Subsidiaries (or any of their successors in interest) shall be required to take any action under this Plan or any Option granted hereunder if: 
  

	(a)	the Bank is declared by any Regulatory Authority to be insolvent; or, 

  

	(b)	in the opinion of legal counsel to the Bank, such payment or action: 

  

	 	(i)	would be prohibited by or would violate any provision of state or federal law applicable to the Bank or any of its Subsidiaries, including without limitation the Federal
Deposit Insurance Act as now in effect or hereafter amended; 

  

	 	(ii)	would be prohibited by or would violate any applicable rules, regulations, orders or statements of policy, whether now existing or hereafter promulgated, of any Regulatory
Authority; or, 

  

	 	(iii)	otherwise would be prohibited by any Regulatory Authority. 

 6.5
No Obligation to Purchase Shares. 
 The granting of an Option pursuant to the Plan shall impose no obligation on the Optionee to purchase any shares
covered by such Option. 
 6.6 Payment of Taxes. 
 Each
Optionee shall be responsible for all federal, state, local or other taxes of any nature as shall be imposed pursuant to any law or governmental regulation or ruling on any Option or the exercise thereof or on any income which an Optionee is deemed
to recognize in connection with an Option. If the 
  

 10 

 Committee shall determine to its reasonable satisfaction that the Bank or any of its Subsidiaries is required to pay or
withhold the whole or any part of any estate, inheritance, income, or other tax with respect to or in connection with any Option or the exercise thereof, then the Bank or such Subsidiary shall have the full power and authority to withhold and pay
such tax out of any shares of Common Stock being purchased by the Optionee or from the Optionee’s salary or any other funds otherwise payable to the Optionee, or, prior to and as a condition of exercising such Option, the Bank may require that
the Optionee pay to it in cash the amount of any such tax which the Bank, in good faith, deems itself required to withhold. 
 6.7 Choice of Law.

 The validity, interpretation and administration of the Plan, any Option Agreement, and of any rules, regulations, determinations or decisions made
thereunder, and the rights of any and all persons having or claiming to have any interest therein or thereunder, shall be determined exclusively in accordance with the laws of the State of North Carolina. Without limiting the generality of the
foregoing, the period within which any action in connection with the Plan must be commenced shall be governed by the laws of the State of North Carolina, without regard to the place where the act or omission complained of took place, the residence
of any party to such action, or the place where the action may be brought or maintained. 
 6.8 Modification of Plan. 
 The Board, upon recommendation of the Committee, may, from time to time, amend, modify, suspend, terminate or discontinue the Plan at any time without notice, provided,
however, that no such action by the Board shall adversely affect any Optionee’s rights under any then outstanding Options without such Optionee’s prior written consent; and, provided further that, except as shall be required to comport
with changes in the Code, any modification or amendment of the Plan that (a) increases the aggregate number of shares of Common Stock which may be issued upon the exercise of Options (other than as provided in Paragraph 6.1 above),
(b) changes the formula by which the Exercise Price is determined, (c) changes the provisions of the Plan with respect to the determination of Directors to whom Options may be granted or, (d) otherwise materially
increases the benefits accruing to Optionees under the Plan, shall be subject to the approval of the Bank’s shareholders. In the event the Board shall terminate or discontinue the Plan, such action shall not operate to deprive any Optionee of
any rights theretofore acquired by him or her under the Plan, and any Options outstanding as of the date of any such termination shall remain in full force and effect according to their terms as though the Plan had not been terminated. 

6.9 Application of Funds. 
 The proceeds received by the Bank from
the sale of Common Stock pursuant to Options granted under the Plan will be used for general corporate purposes. 
 6.10 Notices. 
 Except as otherwise provided herein, any notice which the Bank or an Optionee may be required or permitted to give to the other under this Plan shall be in writing and
shall be deemed duly given when delivered personally or deposited in the United States mail, first class postage prepaid, and properly addressed. Notice, if to the Bank, shall be sent to its President at the address of the Bank’s then current
corporate office. Any notice sent by mail by the Bank to an Optionee shall be sent to the most current address of the Optionee as reflected on the records of the Bank or its Subsidiaries as of the time said notice is required. In the case of a
deceased Optionee, any notice shall be given to the Optionee’s personal representative if such representative has delivered to the Bank evidence satisfactory to the Bank of such representative’s status as such and has informed the Bank of
the address of such representative by notice pursuant to this Paragraph 6.10. 
  

 11 

 6.11 Conformity With Applicable Laws and Regulations. 
 With respect to persons who are subject to Section 16 of the 1934 Act, the Plan and each Option granted and transaction under it are intended to, and shall be
interpreted so as to, be consistent with the requirements, and satisfy applicable conditions, of Rule 16b-3 of the Securities and Exchange Commission (as such Rule may be modified, amended or superseded from time to time). To the extent any
provision of the Plan or any Option Agreement, or any action by the Committee or the Board, shall fail to so comply, then, to the extent permitted by law and deemed advisable by the Committee, such provision or action shall be deemed null and void.

 6.12 Successors and Assigns. 
 Subject to Paragraph 5.5
above, this Plan shall bind and inure to the benefit of the Bank, any Optionee, and their respective successors, assigns, personal or legal representatives and heirs. 
 6.13 Severability. 
 It is intended that each provision of this Plan shall be viewed as separate and divisible, and in
the event that any provision hereof shall be held to be invalid or unenforceable, the remaining provisions shall continue to be in full force and effect. 
 6.14 Titles. 
 Titles of Articles and Paragraphs are provided herein for convenience only, do not modify or affect the meaning of any
provision herein, and shall not serve as a basis for interpretation or construction of this Plan. 
 6.15 Gender and Number. 
 As used herein, the masculine gender shall include the feminine and neuter, the singular number the plural, and vice versa, whenever such meanings are appropriate.

  

 12 

 BANK OF DAVIE 
 AMENDMENT N0. 1 TO 
 DIRECTOR STOCK OPTION PLAN 
 THIS AMENDMENT NO. 1 TO DIRECTOR STOCK OPTION PLAN (the “Amendment”) is made as of this 23rd day of March, 2001, by Bank of Davie (the
“Bank”). 
 WHEREAS, the Board of Directors of the Bank heretofore adopted the Bank’s Director Stock Option Plan (the
“Director Plan” or the “Plan”) which provides for the grant of options to directors of the Bank to purchase newly issued shares of the Bank’s common stock; and, the Director Plan was approved during 1999 by the Bank’s
shareholders and by the North Carolina Commissioner of Banks (the “Commissioner”) in the manner required by North Carolina law; and, 
 WHEREAS, upon recommendation of the committee that administers the Director Plan (the “Committee”), and subject to certain limitations, the Bank’s Board of Directors is authorized to modify and amend the Plan from time
to time without the approval of the Bank’s shareholders; and, 
 WHEREAS, the Committee has recommended to the Board of Directors
that the Plan be amended as described herein (the “Amendment”), and the Board of Directors approved the Amendment by Resolution duly adopted on February 26, 2001; and, 
 WHEREAS, the Amendment has been approved by the Commissioner; and, 
 WHEREAS, this Amendment No. 1 is made for the purpose of effecting the Amendment. 
 NOW
THEREFORE, in consideration of the premises and pursuant to authority duly given by the Bank’s Board of Directors, the Director Plan hereby is amended as follows: 
 1. The second full paragraph of Section 5.1(a)(ii) of the Director Plan is amended in its entirety to read as follows: 
 “The voluntary termination of an Optionee’s service as a Director after his 65th birthday, or at such lesser age or under such other circumstances as the Board of Directors shall, at its sole discretion,
determine to treat as a “Retirement” (and whether during or at the conclusion of a term of office), shall be deemed to be a “Retirement” for purposes of the Plan.” 
 2. Except as expressly modified and amended as described above, the Director Plan shall remain in full force and effect in accordance with its
terms. 
 IN WITNESS WHEREOF, the Bank has executed this Amendment, by and through the undersigned thereunto duly authorized, on this
the day and year first above written. 
  

					
		 	BANK OF DAVIE
	 (SEAL)
	 		 	
		 	By:	 	 /S/ Robert E. Marziano 

		 		 	Robert E. Marziano
		 		 	President and Chief Executive Officer

  

	
	ATTEST: 
	
	 /S/ Brenda Smith

	Secretary

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