Document:

Management Incentive Plan

 Exhibit 10.8 
 Asheville Savings Bank, SSB 
 Amended and Restated 

Management Incentive Plan 
 1. Purpose 
 The purpose of The Asheville Savings Bank Management Incentive Plan
(the “Plan”) is to provide selected key employees of Asheville Savings Bank, SSB (the “Bank”) with the opportunity to receive payments of amounts from a pool related to the rate of return on assets of the Bank and distributed
based on the achievements of individual objectives (the “Objectives”). The Plan provides an incentive to employees to enhance the profitability of the Bank, within the constraints of safe, sound banking practices. The implementation of an
incentive plan is designed to enhance the potential compensation of the Bank’s employees assisting in the attraction, motivation and retention of qualified employees. 
 2. Effective Date and Plan Year. 
 The Effective Date of the Plan shall be
January 1, 1998, as amended and restated as of January 1, 2006. The Plan Year shall be the calendar year. 
 3.
Eligibility. 
 An individual shall be eligible to become a Participant in the Plan who satisfies the following requirements:

  

	 	a.	The individual is a regular employee of the Bank as of July 1 of any year. For this purpose, an individual shall be considered to be a “regular employee”
if there exists between the individual and the Bank the legal and bona fide relationship of employer and employee. 

  

	 	b.	The individual is a key employee of the Bank. For this purpose a “key employee” shall mean an employee recommended by the Chief Executive Officer (CEO) to the
Board of Directors of the Bank (the “Board”) as being in a position to affect materially the profits of the Bank by reason of the nature and extent of the employee’s duties and responsibilities. Initially, this meaning shall be
limited to those in the management chain of command, up to the CEO. 

  

	 	c.	The individual is approved by the Board as a Participant in the Plan. 

  
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 4. Participation. 

4.1 Prior to the beginning of each Plan Year, the Chief Executive Officer shall approve a list of eligible employees to become Participants in the Plan
(a “Participant”) with respect to such Plan Year. Participants shall be approved by the Board at its discretion. In the event of the promotion of an employee or the hiring of a new employee on or before July 1 of the Plan Year, the
Chief Executive Officer may approve the entry of a Participant into the Plan. In such case, the Incentive Award determined under Section 5 with respect to such Participant shall be multiplied by a fraction, the numerator of which is the number
of full calendar months during the Plan Year in which he/she is a Participant and the denominator of which is twelve. Participation in the Plan requires the Participant to be subject to the provisions of the Plan and such other terms and conditions
as the Board shall provide. 
 4.2 This plan section applies only to participants who are also participants in the Directors
and Officers Deferral Plan. Prior to any deferral of all or a portion of an Incentive Award hereunder, a participant must first maximize their participation in the qualified 401(k) Plan provided by the Bank. In the event that a Participant desires
to defer all or a portion of any Incentive Award otherwise payable hereunder, then the Participant must complete and file an election form (the “Election Form”) with the Bank; (a) if it is the first year of eligibility of a
Participant, within thirty (30) days of becoming eligible to participate in the Plan; or (b) no later than June 30th of each year, in each case notifying the Bank as to the percent or dollar amount of the Incentive Award that are to be
deferred each year and the Participant’s designated beneficiary in the event of a Termination Event (as defined in Section 6 below). A copy of the Election Form is attached hereto as Exhibit A. The election to defer all or a portion of an
Incentive Award may only be made for an Incentive Award not yet earned as of the date of said election. Participant’s may defer all (100%) or a portion of their receipt of an Incentive Award in increments of five percent (5%), with a
minimum deferral of five percent (5%). Signed Election Forms, unless modified or revoked in writing, shall be valid for all succeeding years. Any modification or revocation of an Election Form must be in writing, made at least one year prior to
receiving an Incentive Award hereunder and shall be effective for calendar years succeeding the year in which the modification or revocation is made; provided, however that where a delay in payment is made in a modification, the Participant must
defer payment for at least five (5) years from the original payment date. Notwithstanding the foregoing, Participants shall be allowed to change their investments of any deferred amounts at least quarterly. 

5. Incentive Award. 
 5.1 Subject to Section 5.2, each Participant for a Plan Year shall receive an Incentive Award determined by multiplying the individual’s objectives achieved by a weighting factor (positive or
negative). The sum of the weights derived is then multiplied by a Potential Award, adjusted for the Bank’s achievement of its objective for Return of Average Assets. For purposes of this section 5, the following definitions shall apply.

  

	 	a.	 “ROAA” means a percentage determined by dividing the net income of the Bank for the Plan Year before accruals of Incentive Awards under this
Plan by the average month-end total assets of the Bank during the Plan Year. The ROAA for 

  
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a Plan Year shall be determined by the independent certified public accountants of the Bank in accordance with generally accepted accounting principles. 

 

	 	b.	“Actual ROAA” means the ROAA actually achieved by the Bank for the Plan Year. 

 

	 	c.	“Maximum ROAA” means the ROAA determined for each Plan Year by the Board above which no additional Incentive Award shall be paid. The Maximum ROAA with
respect to a Plan Year shall be determined by the Board prior to the first day of such Plan Year. 

  

	 	d.	“Minimum ROAA” means the ROAA determined for each Plan Year by the Board below which no Incentive Award shall be paid. The Minimum ROAA with respect to a Plan
Year shall be determined by the Board prior to the first day of such Plan Year. 

  

	 	e.	“Potential Award” means with respect to each Participant for the Plan Year a dollar amount determined by multiplying the mid-point level for his salary grade
as of the first day of the Plan Year by a percentage designated by the Board prior to the first day of the Plan Year. The Potential Award represents the Incentive Award payable to the Participant in the event the Maximum ROAA and all
of the Participant’s Personal Objectives are fully achieved for the Plan Year. 

 5.2 Notwithstanding any other provision of
this Plan, the Chief Executive Officer shall recommend the payment of the Incentive Award as determined under Section 5.1 and the Board shall approve such awards. The Board in its discretion may adjust the amount of the payment as it deems
necessary to meet the purpose of this Plan. Where interpretations of achievement or performance on the Incentive Award calculation factors is inconsistent, the judgment of the Board will prevail. 

5.3 To receive an Incentive Award from the Plan, the Participant must be an active employee of the Bank on the last day of the Plan Year. 

6. Termination of Employment during Plan Year. 
 The Participant shall not receive an Incentive Award with respect to a Plan Year if, for reasons other than a Termination Event as defined in this Section 6, the employment of the Participant by the
Bank is terminated during the Plan Year or the duties of the position of the Participant are changed during the Plan Year so that he no longer is considered a “key employee” as described in Section 3. The following shall each
constitute a “Termination Event”: 
  

	 	a.	Death of the Participant while employed by the Bank. 

  

	 	b.	Retirement of the Participant from the Bank with the approval of the Board. 

  
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	 	c.	Disability of the Participant while employed by the Bank. For this purpose, the term “disability” shall mean the Participant, as a result of physical or
mental illness or disease, injury (excluding self-inflicted injury) or chemical addiction is: (1) unable to engage in any substantial gainful activity by reason of any medically determined physical or mental impairment which can be expected to
last for a continuous period of twelve (12) months or has a condition which can be expected to result in death; or (2) by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be
expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees of the Bank. The
determination of disability shall be made by the Board based on medical evidence from an independent physician selected by the Participant with the approval of the Board. 

 In the event of a Termination Event, the Participant or his Beneficiary shall receive an Incentive Award with respect to such Plan Year equal to the amount determined under Section 5 multiplied by a
fraction, the numerator of which is the number of full calendar months during the Plan Year in which he was a Participant prior to the Termination Event and the denominator of which is twelve; the payment of which shall be accordance with
Participant’s Election Form, if completed. 
 7. Change of Job during Plan Year. 

In the event that a Participant changes jobs within the Bank during the Plan Year, the Participant’s potential award will be calculated on a
prorated basis. The Participant’s job tenure will be the basis for proration. Proration will be calculated by rounding tenure to the nearest full month. 
 8. Payment of Incentive Awards. 
 Unless Participant has timely completed an
Election Form electing to defer all or a portion of an Incentive Award hereunder, the Incentive Award for a Plan Year shall be paid by the Bank in cash to the Participant or his Beneficiary no later than two and one-half months after the end of the
Plan Year. 
 9. Withholding. 
 There shall be deducted from the payment of the Incentive Award the amount of any tax or other amount required by any governmental authority to be withheld and paid over by the Bank to such authority for
the account of the person entitled to such payment. 
 10. Nonassignability of Incentive Awards. 

The right to receive payment of the Incentive Award shall not be assignable or transferable (including by pledge or hypothecation) other than by will or
the laws of intestate succession. 

  
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 11. Deferred Incentive Award Accounts; Investment. 

11.1 (a) If a Participant timely completes an Election Form and elects to defer the receipt of all or a portion of an Incentive Award hereunder, the
Bank shall establish and maintain a Deferred Incentive Award Account for the Participant. Participant’s Deferred Incentive Award Account shall be credited with the amount of the Participant’s Incentive Award if earned and when paid by the
Bank that Participant has elected to defer under the Election Form. At all times, the Participant shall be one hundred percent (100%) vested (except as provided in Section 11.3) in the Participant’s Deferred Incentive Award Account.
Payment of the Participant’s Deferred Incentive Award Account shall commence on the first day of the calendar month following the end of Participant’s employment with the Bank due to resignation, retirement, financial hardship (as provided
in Section 11.2 below), death or disability as set forth in Participant’s Election Form. Each Deferred Incentive Award Account shall be maintained until the value thereof has been distributed to or on behalf of such Participant. The value
of such Deferred Incentive Award Account shall be calculated at least annually. 
 (b) The Bank will maintain a record of any
Incentive Award amounts deferred by a Participant under this Plan on or prior to December 31, 2004 and such amounts shall be treated as a separate Account if necessary, in order to comply with the provisions of Section 409A of the Internal
Revenue Code of 1986, as amended or the regulations promulgated thereunder (the “Code”). Notwithstanding anything to the contrary, the assets of any Deferred Incentive Award Account shall remain in the United States at all time.

 11.2 The Bank shall permit a financial hardship distribution from a Deferred Incentive Award Account upon the occurrence of an unforeseeable
emergency involving a Participant or his or her family. The Participant may submit a written application for an in-service hardship distribution to the Board. The application must specify the nature of the financial hardship, the total amount of the
actual expense incurred or to be incurred due to the financial hardship. If, in the discretion of the Board, the Participant has suffered an unforeseeable emergency that results in severe financial hardship to the Participant or his or her family,
the Board shall cause the Plan to pay an in-service distribution to the Participant from the Participant’s Deferred Incentive Award Account. A distribution because of an unforeseeable emergency shall not exceed the amount required to meet the
immediate financial need created by the unforeseeable emergency and not otherwise reasonably available from other resources of the Participant. Such distribution shall be paid in a single- sum cash payment as soon as administratively feasible, after
the Board has reached its determination. Examples of an unforeseeable emergency shall include, but not be limited to, those financial needs arising on account of illness or accident of Participant, his or her spouse or a dependent of Participant,
loss of Participant’s property due to casualty, or similar extraordinary unforeseeable circumstances arising as a result of events beyond the control of Participant. 
 11.3 Notwithstanding anything to the contrary in this Plan, the right of a Participant or a beneficiary to receive future payments hereunder, including distributions from a Deferred Incentive Award
Account, shall be forfeited if the Participant is discharged for cause from employment from the Bank. For purposes of this Section 11.3, “cause” shall mean embezzlement 

  
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of funds, conviction of a crime involving moral turpitude or continuous or willful failure to abide by the Bank’s policies, all as may be determined by the Board. 

11.4 The Participant shall indicate on his or her Election Form as to the percent (%) of any deferred Incentive Award that is to be allocated among
the investment choices provided by the Bank. The performance of the deemed investments will be used to determine the earnings and the losses to credit to the Participant’s Deferred Incentive Award Account. The Participant will be allowed to
change the investment allocation of their Deferred Incentive Award Account quarterly. 
 12. No Right or Obligation of
Continued Employment. 
 Nothing contained in the Plan shall require the Bank to continue to employ the Participant, nor shall the
Participant be required to remain in the employment of the Bank. 
 13. Retirement Plans. 

The treatment of any amounts accrued, payable or paid out under this Plan will be treated consistently with all Asheville Savings Bank retirement plans
regarding the inclusion of such payouts in the basis for retirement funding. 
 14. Dilution or Other Adjustments.

 14.1 Subject to Section 14.2 below, if there is any change in the Bank because of a merger, consolidation or reorganization
involving the Bank, the Board shall make such adjustments to any provisions of this Plan as the Board deems desirable to prevent the dilution or enlargement of rights granted hereunder. 
 14.2 In the event of a change of control, meaning the occurrence of any of the following: (a) a merger, business combination or other transaction such that a person, or more than one person acting as
a “Group” (as determined by Section 409A of the Code), acquires ownership of Bank stock that constitutes more than fifty percent (50%) of the total fair market value or total voting power of the stock of the Bank; (b) any
one person, or more than one person acting as a Group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the Bank of thirty five percent
(35%) or more of the total voting power of the stock of the Bank; (c) a majority of the members of the Bank’s Board of Directors are replaced in any 12-month period by directors whose appointment or election is not endorsed by a
majority of the members of the Bank’s Board of Directors prior to the date of the appointment or election; or (d) a change in the ownership of a substantial portion of the Bank’s assets, as of the date that any person, or more than
one person action as a Group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the Bank that have a total gross fair market value equal to or more than
forty percent (40%) of the total gross fair market value of all of the assets of the Bank immediately prior to the acquisition. For the purposes of this analysis: (i) gross fair market value means the value of the assets of the Bank, or
the value of the assets being disposed of, determined without regard to any liabilities associated with such assets, 

  
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and (ii) a transfer of assets by the Bank shall not be treated as a change in the ownership of such assets if the assets are transferred to (1) a shareholder of the Bank (immediately
before the asset transfer) in exchange for or with respect to its stock; (2) an entity, fifty percent (50%) or more of the total value or voting power of which is owned, directly or indirectly, by the Bank; (iii) a person, or more
than one person acting as a Group, that owns, directly or indirectly, fifty percent (50%) or more of the total value or voting power of all of the outstanding stock of the Bank; or (4) an entity, at least fifty percent (50%) of the
total value or voting power of which is owned, directly or indirectly, by a person described in (3); 
 Then, if a Participant’s employment
with the Bank is terminated solely by reason of the occurrence of a change of control, Participant shall be entitled to receive the Participant’s Deferred Incentive Award Account balance as of the date of the change of control which shall be
paid as set forth in the Election Form to the Participant or to such individuals as the Participant may have designated in writing and filed with the Bank. 
 15. Administration of the Plan. 
 15.1 The Plan shall be administered by the Chief
Executive Officer with the consent and approval of the Board or its designate committee. Subject to the provisions of the Plan, the Board shall have plenary authority in its discretion, among other things, to determine the levels for Performance
Factors and Award Triggers, to approve the Incentive Awards to Plan Participants, to interpret the Plan and to prescribe, amend and rescind rules and regulations relating to the Plan. The Board shall exercise its authority through Management and
such Committees of the Board as may be appropriate. 
 15.2 In the event a dispute arises over benefits under the Plan and benefits are not paid
from a Deferred Incentive Award Account to the Participant (or to the Participant’s beneficiary(ies) in the case of the Participant’s death) and such claimants feel they are entitled to receive such benefits, then a written claim must be
made to the Board within sixty (60) days from the date payments are refused. The Board shall review the written claim and if the claim is denied, in whole or in part, they shall provide in writing within sixty (60) days of receipt of such
claim the specific reasons for such denial, reference to the provisions of the Plan upon which the denial is based and any additional material or information necessary to perfect the claim. Such written notice shall further indicate the additional
steps to be taken by claimants if a further review of the claim denial is desired. A claim shall be deemed denied if the Board fails to take any action within the aforesaid sixty-day period. 

If claimants desire a second review they shall notify the Board in writing within sixty (60) days of the first claim denial.
Claimants may review the Plan or any documents relating thereto and submit any written issues and comments it may feel appropriate. In its sole discretion, the Board shall then review the second claim and provide a written decision within sixty
(60) days of receipt of such claim. This decision shall likewise state the specific reasons for the decision and shall include reference to specific provisions of this Plan upon which the decision is based. 

If claimants continue to dispute the benefit denial, then claimants may submit the dispute

  
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to an Arbitrator for final arbitration. The Arbitrator shall be selected by mutual agreement of the Bank and the claimants. The Arbitrator shall operate under any generally recognized set of
arbitration rules. The parties hereto agree that they and their heirs, personal representatives, successors and assigns shall be bound by the decision of such Arbitrator with respect to any controversy properly submitted to it for determination.

 16. Amendment, Termination and Continuation of the Plan. 

The Plan may be amended or terminated at any time by the Board, in whole or in part without any liability for any such amendment or termination. The Plan
must be affirmed by the Board at the beginning of each Plan Year. In the event of a termination of the Plan, no further amounts may be deferred into a Deferred Incentive Award Account and the Bank shall retain each Deferred Incentive Award Account
(with any earnings and losses thereon) until distribution of benefits commences as provided in this Plan. 
 17. Binding on
Successors. 
 The obligations of the Bank under the Plan shall be binding upon any organization which shall succeed to all or
substantially all of the assets of the Bank, and the term “Bank,” whenever used in the Plan, shall mean and include any such organization after the succession. 
 18. Applicable Law. 
 The Plan shall be governed by and construed in accordance with
the laws of the State of North Carolina. 
 19. Miscellaneous. 

A. Beneficiary: The term “beneficiary” as used herein shall mean any person or trust, or combination thereof, last designated
by the Participant in writing filed with the Bank by the Participant during the Participant’s life upon an Election Form provided by the Plan. Any such designation or designations of beneficiary(ies) shall be revocable at any time without the
consent of any beneficiary, whether now living or born hereafter, by written designations of beneficiaries made by the Participant and filed by the Participant with the Bank during the Participant’s life. In the absence of or failure of
designated beneficiary(ies), the Participant’s estate shall be beneficiary. 
 B. Spendthrift: It is agreed that
neither the Participant, nor any beneficiary hereunder, shall have any right to sell, assign, transfer, pledge or encumber the right to receive any payments hereunder, and any attempt to do so shall be void. A Participant or beneficiary interest in
benefits under the Plan shall not be subject to debts or liabilities of any kind and shall not be subject to attachment, garnishment or legal process. 
 C. No Fiduciary Relationship: Other than as otherwise provided herein, the Bank shall be under no obligation to purchase or maintain any life insurance policy, annuity contract, or any other asset,
or in any manner to provide funding for its obligations under this Plan. Nothing contained in the Plan and no action taken pursuant to the provisions of this Plan shall 

  
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create or be construed to create a trust of any kind, or a fiduciary relationship between any of the Bank, Participant, Participant’s designated beneficiary(ies) or any other person. Any
bonus deferred or funds invested in connection with the Bank shall continue to be part of the general funds and assets of the Bank. To the extent that any person acquires a right to receive payments under this Plan, such rights shall be no greater
than the right of any unsecured general creditor of the Bank. 
 D. No Representations: The Bank does not represent or
guarantee that any particular federal or state income, payroll, personal property or other tax consequence will result from participation in the Plan or any deferral of all or a portion of an Incentive Award. A Participant should consult with
professional tax advisors to determine the tax consequences of his or her participation and any deferral of all or a portion of an Incentive Award. Furthermore, the Bank does not represent or guarantee successful investments of deferred amounts and
shall not be required to restore any losses which may result from such investment or lack of investment. 
 E.
Severability: If a court of competent jurisdiction holds any provision of this Plan to be invalid or unenforceable, the remaining provisions of the Plan shall continue to be fully effective. 

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

G. Contractual Liability: The obligation of the Bank to make payments hereunder shall constitute a contractual liability of the
Bank to the Participant. Such payments shall be made from the general funds of the Bank, and the Bank shall not be required to establish or maintain any special or separate fund or to establish a trust or otherwise to segregate assets to assure that
such payments shall be made, and the Participant shall not have any interest in any particular assets of the Bank by reason of its obligations hereunder. To the extent that any person requires a right to receive payment from the Bank, such right
shall be no greater than the right of an unsecured creditor of the Bank. 
 H. Third Party Advisors: The Board may engage
an attorney, accountant, actuary or any other technical advisor on matters regarding the operation of the Plan and to perform such other duties as shall be required in connection therewith, and may employ such clerical and related personnel as the
Board shall deem requisite or desirable in carrying out the provisions of the Plan. The Board shall from time to time, but no less frequently than annually, review the financial condition of the Plan and determine the financial and liquidity needs
of the Plan. The Board shall communicate such needs to the Bank so that its policies may be appropriately coordinated to meet such needs. 
 I. Set Off: Notwithstanding any other provision of the Plan, the Bank may reduce the amount of any payment otherwise payable to or on behalf of a Participant hereunder by the amount of any loan,
cash advance, extension of credit or other obligation of the Participant to the Bank that is then due and payable, and the Participant shall be deemed to have consented to such reduction. 

  
 9CIC Severance Plan

 Exhibit 10.9 
 PROPOSED 
 ASHEVILLE SAVINGS BANK 

CHANGE IN CONTROL SEVERANCE PLAN 
 Section 1. Plan Name and Effective Date 
 1.1 The name of the Plan is
the Ashville Savings Bank Change in Control Severance Plan. The effective date of the Plan shall be                 , 2011. 

Section 2. Purpose 

2.1 The purpose of the Plan is to provide severance pay to eligible Employees following a Change in Control and under the conditions set
forth in this Plan. Severance payments under the Plan are designed to provide the Employee with funds while seeking other employment. 

Section 3. Definitions 
 Bank shall mean the Ashville Savings Bank, a North Carolina-chartered savings bank. 
 Board shall mean the Board of Directors (or a Committee thereof) of the Bank. 
 Cause shall mean: (1) willful failure to follow or to cooperate in carrying out any of the lawful policies of Company or the Bank or the lawful directions of the Board, (2) continued and
willful neglect of duties for or on behalf of the Bank, (3) willful misconduct in connection with the performance of any of the Employee’s duties, (4) conduct which results in the Employee’s suspension and/or temporary
prohibition or removal and/or permanent prohibition from participation in the conduct of the affairs of the Bank pursuant to the rules and regulations of the primary federal or state banking agency having regulatory jurisdiction over the Bank,
(5) conviction of a felony or any misdemeanor involving moral turpitude or willful violation of any law, rule or regulation to which the Bank is subject or of a final order or other formal administrative action entered into, by or imposed upon
the Bank; (6) willful violation of any code of conduct or standards of ethics applicable to employees of the Bank that results in material and demonstrable damage to the business or reputation of the Bank, or (7) the issuance of a
permanent injunction or similar remedy against the Employee preventing the Employee from executing or performing the duties of his position. The Employee shall be entitled to at least seven (7) days’ prior written notice of the Bank’s
intention to terminate his or her employment for any Cause, specifying the grounds for such termination and the means, if any, to rectify such conduct, and seven (7) days to rectify or appeal in writing to the Board regarding the existence of
such Cause. 
 Change in Control shall mean and shall be deemed to have occurred upon the occurrence of any of the
following events. 
 (1) The acquisition by any “person” or “group” (as defined in or pursuant to Sections
13(d) and 14(d) of the Exchange Act) (other than Company, any Subsidiary or any Company or Subsidiary’s employee benefit plan), directly or indirectly, as “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) of
securities representing fifty percent (50%) or more of either the then outstanding shares or the combined voting power of the then outstanding securities of Company or the Bank; 

(2) Either a majority of the directors of Company elected at Company’s annual stockholders meeting shall have been nominated for
election other than by or at the direction of the “incumbent directors” of Company, or the “incumbent directors” shall cease to constitute a majority of the directors of Company. The term “incumbent director” shall mean
any director who was a director of Company on the Effective Date and any individual who becomes a director of Company subsequent to the Effective Date and who is elected or nominated by or at the direction of at least majority of the then incumbent
directors; or 

 (3) The consummation of (x) a merger, consolidation or other business combination of
Company with any other “person” or “group” (as defined in or pursuant to Sections 13(d) and 14(d) of the 1934 Act) or affiliate thereof, other than a merger or consolidation that would result in the outstanding common stock of
Company immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into common stock of the surviving entity or a parent or affiliate thereof) more than fifty percent (50%) of the outstanding common
stock of Company or such surviving entity or a parent or affiliate thereof outstanding immediately after such merger, consolidation or other business combination, or (y) a plan of complete liquidation of Company or the Bank or an agreement for
the sale or disposition of all or substantially all of Company’s or the Bank’s assets. 
 Comparable Position
shall mean a position that, following a Change in Control, would (i) provide the Employee with base compensation and benefits that are comparable in the aggregate to those provided to the Employee prior to the Change in Control,
(ii) provide the Employee with an opportunity for variable bonus compensation that is comparable to the opportunity provided to the Employee prior to the Change in Control, (iii) be in a location that would not require the Employee to
increase his or her daily one way commuting distance by more than thirty-five (35) miles as compared to the Employee’s commuting distance immediately prior to the Change in Control and (iv) have job skill requirements and duties that
are comparable to the requirements and duties of the position held by the Employee prior to the Change in Control. 

Employee shall mean a regular, active full-time, part-time, or Part-time Plus employee of the Bank, but excludes an employee who
has a written employment agreement, severance agreement, or similar agreement with the Bank providing for severance payment(s) in the event of termination of employment. 
 Participant shall mean an Employee who satisfies the eligibility requirements as set forth in Section 4.1. 
 Pay shall mean the base or regular compensation rate as of the calendar month preceding the date of employment termination. In the case of a non-exempt Employee, “Pay” shall not include
overtime compensation paid to such Employee during such month. 
 Payment Period shall mean, with respect to payment by
the Bank of the Severance Payment pursuant to Section 5.1, the number of weeks or months of Pay a Participant is entitled to under Section 5.1. The Payment Period is not dependent on whether a benefit payment under Section 5 is made
periodically or in a lump sum. 
 Plan shall mean this Ashville Savings Bank Employee Severance Plan as it may be amended
from time to time. 
 Service shall mean all employment with the Bank, or any successor thereof. 

Severance Payment has the meaning given to such term in Section 5.1. 

  
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 Section 4. Eligibility 
 4.1 An Employee shall be eligible to receive a Severance Payment as set forth in Section 5, if: 
  

	 	(a)	as of the Employee’s termination date, the Employee has completed at least one (1) year of Service with the Bank (provided, however, that an Employee serving
as a Senior Vice President or Vice President shall not be subject to the foregoing minimum service requirement), 

  

	 	(b)	on or after the effective date of a Change in Control and continuing through the first anniversary of the Change in Control, the Employee’s employment is
terminated by the Bank, other than under the circumstances described in Section 5.5; and 

  

	 	(c)	the Employee signs a general release waiving any employment-related claims against the Bank in a form provided by the Bank. 

Section 5. Severance Payment Calculation and Payment 
 5.1 A Participant under the Plan shall be eligible to receive a severance payment calculated as follows (the “Severance Payment”): 

Participant who is a Senior Vice President – Eighteen (18) months of Pay. 

Participant who is a Vice President – Twelve (12) months of Pay. 

Participant who is an Assistant Vice President – Nine (9) months of Pay. 

All other Non-Officer Participants. – the greater of: (a) two (2) weeks of Pay for each completed year of Service,
calculated based on the Employee’s hire date, but not to exceed fifty two (52) weeks of Pay, or (b) four weeks of Pay. 
 Notwithstanding anything herein to the contrary, the Severance Payment shall not exceed two (2) times the lesser of: 
  

	 	(a)	the Participant’s annual compensation (as defined in Internal Revenue Code of 1986, as amended (the “Code”) Regulation Section 1.415-2(d)(2)) for
the calendar year preceding the calendar year in which the employment terminates; and 

  

	 	(b)	the maximum amount of compensation under Section 401(a)(17) of the Code for the calendar year in which occurs the date of employment termination.

 5.2 The Bank reserves the right to offset the payments described in Section 5.1 above against any monies
the Participant owes the Bank. 
 5.3 Payments under the Plan shall be made during the Payment Period in accordance with the
regular payroll schedule of the Bank, subject to any necessary or required benefit or tax withholding. 
 5.4 If a Participant
dies before receiving a payment due under the Plan, such payment shall continue to be paid to the beneficiary designated by the Participant at the time of termination of employment. If no beneficiary has been designated, then such payments shall be
made to the Participant’s estate. 

  
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 5.5 Notwithstanding anything in this Plan to the contrary, in the event of an
Employee’s involuntary termination for Cause, the voluntary termination by the Employee of his or her employment for any reason, other than upon the Bank’s failure to provide the Employee with a Comparable Position, or the Employee’s
termination of employment after the Plan terminates, the Employee will not be entitled to any compensation under this Section 5, other than regular compensation and benefits to which the Employee is entitled through the date of termination.

 Section 6. Administration 
 6.1 The Plan is sponsored and shall be administered by the Bank. 
 6.2 The Bank
may at any time delegate to a person or body, or reserve therefore, any of the fiduciary responsibilities or administrative duties with respect to the Plan. The Bank, or any such delegate, shall have the complete discretion and authority to
interpret the Plan, including matters regarding eligibility and benefit entitlement. 
 6.3 Subject to the limitation of the
provisions of the Plan, the Bank may establish such rules for the administration of the Plan as the Bank may deem desirable. 

6.4 The expenses of administering the Plan, including the benefits, shall be paid by the Bank out of its general assets. 

6.5 The Plan and all of its records shall be kept on a calendar year basis, beginning January 1 and ending December 31 of each
calendar year. 
 6.6 Except as required by applicable law, benefits provided under the Plan shall not be subject to assignment
or alienation, since they are primarily for the support and maintenance of the Participants. Likewise, such benefits shall not be subject to attachment by creditors of or through legal process against the Bank or any Participant. 

6.7 The Bank reserves the right to change, amend or terminate the Plan by a resolution adopted by a majority of the Board. The Plan shall
be reviewed annually by the Compensation Committee of the Board. Participants will be notified of any changes, and all changes will be subject to the Plan’s provisions and applicable laws. Notwithstanding the foregoing, the Plan is not subject
to amendment or termination on or after the effective date of a Change in Control. 
 6.8 Nothing herein shall be construed as
giving to any Employee of the Bank any right to remain in the employ of the Bank, alter an Employee’s status as an at-will employee, or provide or be construed as providing any right to claim any other benefit or allowance after termination of
employment with the Bank except as expressly provided for herein. 
 Section 7. Miscellaneous 

7.1 An Employee who believes they are entitled to benefits under the Plan, must submit a written claim to the Bank within sixty
(60) days of the date of the alleged occurrence giving rise to the claim. If the Bank or any delegate believes that the claim should be denied, the Employee shall be notified in writing of the denial of the claim within ninety (90) days
after the Bank’s receipt of the claim. Such notice shall (a) set forth the specific reason or reasons for the denial, making reference to the pertinent provisions of the Plan on which the denial is based; (b) describe any additional
material or information that should be received before the claim may be acted upon favorably and explain the reason why such material or information, if any, is needed; (c) inform the Employee of his or her right pursuant to this section to
request review of the decision by the Bank; and (d) explain the Plan’s claims review procedure and the time limits applicable to such procedures. An Employee who believes that he or she has

  
 4 

 
submitted all available and relevant information may appeal the denial of a claim to the Bank by submitting a written request for review within sixty (60) days after the date on which such
denial is received. Such period may be extended by the Bank for good cause shown. During this period, the Employee making the request for review may examine the Plan documents, records and other information relevant to the Employee’s claim for
benefits. The Bank shall decide whether or not to grant the claim within sixty (60) days after receipt of the request for review, but this period may be extended by the Bank for up to an additional sixty (60) days in special circumstances.
The Bank’s decision shall be in writing, shall include specific reasons for the decision, shall refer to pertinent provisions of the Plan on which the decision is based, and shall be conclusive and binding on all persons. 

7.2. The Plan and the rights of the parties hereunder shall be governed by and interpreted in accordance with federal law, and, to the
extent applicable, the laws of North Carolina. The invalidity or unenforceability of any provision or any part of any provision, hereof shall in no way effect the validity or enforceability of any other provision or part hereof. 

Section 8. Regulatory Requirements 
 (1) If the Employee is removed and/or permanently prohibited from participating in the conduct of the Employer’s affairs by an order issued under Section 8(e)(4) or 8(g)(1) of the Federal
Deposit Insurance Act (“FDIA”) (12 U.S.C. 1818(e)(4) and (g)(1)), all obligations of the Employer under this Agreement shall terminate, as of the effective date of such order, except for the payment of base salary due and owing on the
effective date of said order, and reimbursement of expenses incurred as of the effective date of termination. 
 (2) If the
Employee is suspended and/or temporarily prohibited from participating in the conduct of the Employer’s affairs by a notice served under Section 8(e)(3) or 8(g)(1) of the FDIA (12 U.S.C. 1818(e)(3) and (g)(1)), all obligations of the
Employer under this Agreement shall be suspended as of the date of service unless stayed by appropriate proceedings. If the charges in the notice are dismissed, the Employer shall reinstate (in whole or in part) any of its obligations which were
suspended. 
 (3) If the Employer is in default (as defined in Section 3(x)(1) of the FDIA), all obligations under this
Agreement shall terminate as of the date of default, but the vested rights of the parties shall not be affected. 
 (4) All
obligations under this Plan shall be terminated, except to the extent a determination is made that continuation of the contract is necessary for the continued operation of the Employer (1) by the director of the Federal Deposit Insurance
Corporation (the “FDIC”) or his or her designee (the “Director”), at the time the FDIC enters into an agreement to provide assistance to or on behalf of the Employer under the authority contained in Section 13(c) of the
FDIA; or (2) by the Director, at the time the Director approves a supervisory merger to resolve problems related to operation of the Employer when the Employer is determined by the Director to be in an unsafe and unsound condition. Any rights
of an Employee that have already vested, however, shall not be affected by such action. 
 (5) All obligations under this Plan
are further subject to such conditions, restrictions, limitations and forfeiture provisions as may separately apply pursuant to any applicable state banking laws. 
 (6) Notwithstanding anything contained in this Agreement to the contrary, no payments shall be made under any other provision herein in contravention of the requirements of Section 2[18(k)] of the
Federal Deposit Insurance Act (12 U.S.C. 1828(k)). 

  
 5

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