Document:

EX-10.4

 Exhibit 10.4 

FORM OF 

CINCINNATI FEDERAL SAVINGS AND LOAN ASSOCIATION 

EMPLOYEE STOCK OWNERSHIP PLAN 

(adopted effective January 1, 2015) 

 CINCINNATI FEDERAL SAVINGS AND LOAN ASSOCIATION 

EMPLOYEE STOCK OWNERSHIP PLAN 

This Employee Stock Ownership Plan (the “Plan”) has been executed on [date], by Cincinnati Federal Savings and Loan
Association (the “Bank”), effective as of the 1st day of January, 2015. 

W I T N E S S E T H    T H A T 

WHEREAS, the board of directors of the Bank has resolved to adopt an employee stock ownership plan for eligible employees of the Bank and
subsidiaries of the Bank, if any, in accordance with the terms and conditions set forth herein. 
 NOW, THEREFORE, the Bank hereby adopts
the following Plan setting forth the terms and conditions pertaining to contributions by the Employer and the payment of benefits to Participants and Beneficiaries. 

IN WITNESS WHEREOF, the Bank has adopted this Plan and caused this instrument to be executed by its duly authorized officers as of the above
date. 
  

							
	ATTEST:						 CINCINNATI FEDERAL SAVINGS
 AND LOAN
ASSOCIATION

				
	  
				By:		  

	Secretary						Chief Executive Officer

 C O N T E N T S 
  

							
	 	 	 	  	Page No.	 
	Section 1.	 	 Plan Identity
	  	 	1	  
			
	 1.1
	 	 Name
	  	 	1	  
	 1.2
	 	 Purpose
	  	 	1	  
	 1.3
	 	 Effective Date
	  	 	1	  
	 1.4
	 	 Fiscal Period
	  	 	1	  
	 1.5
	 	 Single Plan for All Employers
	  	 	1	  
	 1.6
	 	 Interpretation of Provisions
	  	 	1	  
			
	Section 2.	 	 Definitions
	  	 	1	  
			
	Section 3.	 	 Eligibility for Participation
	  	 	11	  
			
	 3.1
	 	 Initial Eligibility
	  	 	11	  
	 3.2
	 	 Terminated Employees
	  	 	11	  
	 3.3
	 	 Certain Employees Ineligible
	  	 	11	  
	 3.4
	 	 Participation after Reemployment
	  	 	12	  
	 3.5
	 	 Omission of Eligible Employee
	  	 	12	  
	 3.6
	 	 Inclusion of Ineligible Employee
	  	 	12	  
			
	Section 4.	 	 Contributions and Credits
	  	 	12	  
			
	 4.1
	 	 Discretionary Contributions
	  	 	12	  
	 4.2
	 	 Contributions for Exempt Loans
	  	 	13	  
	 4.3
	 	 Conditions as to Contributions
	  	 	13	  
	 4.4
	 	 Rollover Contributions
	  	 	13	  
			
	Section 5.	 	 Limitations on Contributions and Allocations
	  	 	14	  
			
	 5.1
	 	 Limitation on Annual Additions
	  	 	14	  
	 5.2
	 	 Effect of Limitations
	  	 	15	  
	 5.3
	 	 Limitations as to Certain Participants
	  	 	16	  
	 5.4
	 	 Erroneous Allocations
	  	 	16	  
			
	Section 6.	 	 Trust Fund and Its Investment
	  	 	17	  
			
	 6.1
	 	 Creation of Trust Fund
	  	 	17	  
	 6.2
	 	 Stock Fund and Investment Fund
	  	 	17	  
	 6.3
	 	 Acquisition of Stock
	  	 	17	  
	 6.4
	 	 Participants’ Option to Diversify
	  	 	18	  
			
	Section 7.	 	 Voting Rights and Dividends on Stock
	  	 	19	  
			
	 7.1
	 	 Voting and Tendering of Stock
	  	 	19	  
	 7.2
	 	 Application of Dividends
	  	 	20	  
			
	Section 8.	 	 Adjustments to Accounts
	  	 	21	  
			
	 8.1
	 	 ESOP Allocations
	  	 	21	  
	 8.2
	 	 Charges to Accounts
	  	 	22	  
	 8.3
	 	 Stock Fund Account
	  	 	22	  
	 8.4
	 	 Investment Fund Account
	  	 	23	  
	 8.5
	 	 Adjustment to Value of Trust Fund
	  	 	23	  

							
	 8.6
		 Participant Statements
		 	23	  
			
	Section 9.		 Vesting of Participants’ Interests
		 	23	  
			
	 9.1
		 Vesting in Accounts
		 	23	  
	 9.2
		 Computation of Vesting Years
		 	24	  
	 9.3
		 Full Vesting Upon Certain Events
		 	24	  
	 9.4
		 Full Vesting Upon Plan Termination
		 	25	  
	 9.5
		 Forfeiture, Repayment, and Restoral
		 	25	  
	 9.6
		 Accounting for Forfeitures
		 	26	  
	 9.7
		 Vesting and Nonforfeitability
		 	26	  
			
	Section 10.		 Payment of Benefits
		 	26	  
			
	 10.1
		 Benefits for Participants
		 	26	  
	 10.2
		 Time for Distribution
		 	27	  
	 10.3
		 Marital Status
		 	29	  
	 10.4
		 Delay in Benefit Determination
		 	29	  
	 10.5
		 Accounting for Benefit Payments
		 	29	  
	 10.6
		 Options to Receive Stock
		 	29	  
	 10.7
		 Restrictions on Disposition of Stock
		 	30	  
	 10.8
		 Continuing Loan Provisions; Creations of Protections and Rights
		 	31	  
	 10.9
		 Direct Rollover of Eligible Distribution
		 	31	  
	 10.10
		 Waiver of 30-Day Period After Notice of Distribution
		 	32	  
			
	Section 11.		 Rules Governing Benefit Claims and Review of Appeals
		 	32	  
			
	 11.1
		 Claim for Benefits
		 	32	  
	 11.2
		 Notification by Committee
		 	32	  
	 11.3
		 Claims Review Procedure
		 	33	  
			
	Section 12.		 The Committee and its Functions
		 	33	  
			
	 12.1
		 Authority of Committee
		 	33	  
	 12.2
		 Identity of Committee
		 	33	  
	 12.3
		 Duties of Committee
		 	33	  
	 12.4
		 Valuation of Stock
		 	34	  
	 12.5
		 Compliance with ERISA
		 	34	  
	 12.6
		 Action by Committee
		 	34	  
	 12.7
		 Execution of Documents
		 	34	  
	 12.8
		 Adoption of Rules
		 	34	  
	 12.9
		 Responsibilities to Participants
		 	34	  
	 12.10
		 Alternative Payees in Event of Incapacity
		 	34	  
	 12.11
		 Indemnification by Employers
		 	35	  
	 12.12
		 Nonparticipation by Interested Member
		 	35	  
			
	Section 13.		 Adoption, Amendment, or Termination of the Plan
		 	35	  
			
	 13.1
		 Adoption of Plan by Other Employers
		 	35	  
	 13.2
		 Plan Adoption Subject to Qualification
		 	35	  
	 13.3
		 Right to Amend or Terminate
		 	36	  
			
	Section 14.		 Miscellaneous Provisions
		 	36	  
			
	 14.1
		 Plan Creates No Employment Rights
		 	36	  
	 14.2
		 Nonassignability of Benefits
		 	36	  
	 14.3
		 Limit of Employer Liability
		 	36	  
	 14.4
		 Treatment of Expenses
		 	36	  

  
 ii 

							
	 14.5
		 Number and Gender
		 	37	  
	 14.6
		 Nondiversion of Assets
		 	37	  
	 14.7
		 Separability of Provisions
		 	37	  
	 14.8
		 Service of Process
		 	37	  
	 14.9
		 Governing State Law
		 	37	  
	 14.10
		 Employer Contributions Conditioned on Deductibility
		 	37	  
	 14.11
		 Unclaimed Accounts
		 	37	  
	 14.12
		 Qualified Domestic Relations Order
		 	38	  
	 14.13
		 Use of Electronic Media to Provide Notices and Make Participant Elections
		 	39	  
	 14.14
		 Acquisition of Securities
		 	39	  
			
	Section 15.		 Top-Heavy Provisions
		 	39	  
			
	 15.1
		 Top-Heavy Plan
		 	39	  
	 15.2
		 Definitions
		 	39	  
	 15.3
		 Top-Heavy Rules of Application
		 	40	  
	 15.4
		 Minimum Contributions
		 	41	  
	 15.5
		 Top-Heavy Provisions Control in Top-Heavy Plan
		 	42	  

  
 iii 

 CINCINNATI FEDERAL SAVINGS AND LOAN ASSOCIATION 

EMPLOYEE STOCK OWNERSHIP PLAN 

Section 1. Plan Identity. 

1.1 Name. The name of this Plan is “Cincinnati Federal Savings and Loan Association Employee Stock Ownership Plan.”

 1.2 Purpose. The purpose of this Plan is to describe the terms and conditions under which contributions made pursuant to
the Plan will be credited and paid to the Participants and their Beneficiaries. 
 1.3 Effective Date. The Effective Date of
this Plan is January 1, 2015. 
 1.4 Fiscal Period. This Plan shall be operated on the basis of a January 1 to
December 31 fiscal year for the purpose of keeping the Plan’s books and records and distributing or filing any reports or returns required by law. 

1.5 Single Plan for All Employers. This Plan shall be treated as a single plan with respect to all participating Employers for
the purpose of crediting contributions and forfeitures and distributing benefits, determining whether there has been any termination of Service, and applying the limitations set forth in Section 5 of the Plan. 

1.6 Interpretation of Provisions. The Employers intend this Plan and the Trust Agreement to be a qualified stock bonus plan
under Section 401(a) of the Code and an employee stock ownership plan within the meaning of Section 407(d)(6) of ERISA and Section 4975(e)(7) of the Code. The Plan is intended to have its assets invested primarily in qualifying
employer securities of one or more Employers within the meaning of Section 407(d)(3) of ERISA, and to satisfy any requirement under ERISA or the Code applicable to such a plan. Accordingly, the Plan is not subject to the diversification
requirements of Code Section 401(a)(35). 
 Accordingly, the Plan and Trust Agreement shall be interpreted and applied in a manner
consistent with this intent and shall be administered at all times and in all respects in a nondiscriminatory manner. 
 Section 2.
Definitions. 
 The following capitalized words and phrases shall have the meanings specified when used in this Plan and in
the Trust Agreement, unless the context clearly indicates otherwise: 
 “Account” means a Participant’s interest in the
assets accumulated under this Plan as expressed in terms of a separate account balance which is periodically adjusted to reflect his Employer’s contributions, the Plan’s investment experience, and distributions and forfeitures. 

“Active Participant” means a Participant who has satisfied the eligibility requirements under Section 3 of the Plan and
(i) is in active Service with an Employer as of the last day of the Plan Year, or (ii) is on a Recognized Absence as of that date, or (iii) his Service terminated during the Plan Year by reason of Disability, death, or Normal
Retirement. 

 “Bank” means Cincinnati Federal Savings and Loan Association and any entity
which succeeds to the business of Cincinnati Federal Savings and Loan Association and adopts this Plan as its own pursuant to Section 13.1 of the Plan. 

“Beneficiary” means the person or persons who are designated by a Participant to receive benefits payable under the Plan on
the Participant’s death. In the absence of any designation or if all the designated Beneficiaries shall die before the Participant dies or shall die before all benefits have been paid, the Participant’s Beneficiary shall be his surviving
Spouse, if any, or his estate if he is not survived by a Spouse. The Committee may rely upon the advice of the Participant’s executor or administrator as to the identity of the Participant’s Spouse. 

“Closing Date” means the closing date of the stock offering of the Company. 

“Code” means the Internal Revenue Code of 1986, as amended. 

“Committee” means the committee responsible for the administration of this Plan in accordance with Section 12 of the
Plan. 
 “Company” means [Company], the holding company of the Bank, and any successor entity which succeeds to the
business of the Company. 
 “Compensation” shall mean: 

(a) 415 Compensation. 

(b) If a determination period consists of fewer than 12 months, the annual compensation limit is an amount equal to the
otherwise applicable compensation limit set forth under Section 5.1-2 of the Plan multiplied by a fraction. The numerator of the fraction is the number of months in the short determination period, and the denominator of the fraction is 12. 

(c) A Participant’s Compensation shall exclude any portion of the Plan Year in which the Participant had not yet entered
the Plan (e.g., the period before the Participant’s Entry Date). 
 “Disability” means the inability to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months. An
individual shall not be considered to be permanently and totally disabled unless he furnishes proof of the existence thereof in such form and manner, and at such times, as the Committee may require. 

“Eligible Employee” means an Employee, other than an Employee identified in Section 3.3 of the Plan. 

  
 2 

 “Employee” means any individual who is or has been employed or self-employed by an Employer. “Employee” also means an individual employed by a leasing organization who, pursuant to an agreement between an Employer and the leasing organization, has performed services
for the Employer and any related persons (within the meaning of Section 414(n)(6) of the Code) on a substantially full-time basis for more than one year, if such services are performed under the primary
direction or control of the Employer. However, such a “leased employee” shall not be considered an Employee if (i) he participates in a money purchase pension plan sponsored by the leasing organization which provides for immediate
participation, immediate full vesting, and an annual contribution of at least 10 percent of the Employee’s 415 Compensation, and (ii) leased employees do not constitute more than 20 percent of the Employer’s total work force
(including leased employees, but excluding Highly Compensated Employees and any other Employees who have not performed services for the Employer on a substantially full-time basis for at least one year). 

“Employer” means the Bank, any subsidiary of the Bank and any other corporation, partnership, or proprietorship which adopts
this Plan with the Bank’s consent pursuant to Section 13.1 of the Plan, and also any entity which succeeds to the business of any Employer and adopts the Plan pursuant to Section 13 of the Plan. 

“Entry Date” means the Effective Date and the first day of each calendar month. 

“ERISA” means the Employee Retirement Income Security Act of 1974 (P.L. 93-406, as
amended). 
 “Exempt Loan” means an indebtedness arising from any extension of credit to the Plan or the Trust which
satisfies the requirements set forth in Section 6.3 of the Plan and which was obtained for any or all of the following purposes: 

(i) to acquire qualifying Employer securities as defined in Treasury Regulations Section 54.4975-12; 

(ii) to repay such Exempt Loan; or 

(iii) to repay a prior exempt loan. 

“415 Compensation” shall mean: 

(a) Wages (including overtime pay, bonuses and commissions), as defined in Code Section 3401(a) for purposes of income tax
withholding at the source. 
 (b) Any elective deferral as defined in Code Section 402(g)(3) (any Employer contributions
made on behalf of a Participant to the extent not includible in gross income and any Employer contributions to purchase an annuity contract under Code Section 403(b) under a salary reduction agreement), and any amount which is contributed or
deferred by the Employer at the election of the Participant and which is not includible in gross income of the Participant by reason of Code Section 125 (including any “deemed” Code Section 125 compensation) (Cafeteria Plan),
Code Section 457, 132(f)(4) or because such amount was deferred in accordance with an Employer-provided deferred compensation plan, shall also be included in the definition of 415 Compensation. 

  
 3 

 (c) 415 Compensation shall also include the following types of compensation paid
after a Participant’s severance from employment with the Employer, provided that amounts described in paragraphs (i) or (ii) below shall only be included in 415 Compensation to the extent such amounts are paid by the later of 2 1⁄2 months after severance from employment, or by the end of the limitation year that includes the date of such severance from employment. 

(i) Regular Pay. 415 Compensation shall include regular pay after severance from employment if (a) the payment is for
regular compensation for services during the Participant’s regular working hours, or compensation for services outside of the Participant’s regular working hours (such as overtime or shift differential), commissions, bonuses, or other
similar payments, and (b) the payment would have been paid to the Participant prior to severance from employment if the Participant had continued in employment with the Employer. 

(ii) Leave Cashouts. Leave cashouts shall be included in 415 Compensation if those amounts would have been included in the
definition of 415 Compensation if they were paid prior to the Participant’s severance from employment, and the amounts are payment for unused accrued bona fide sick, vacation or other leave, but only if the Participant would have been able to
use the leave if his employment had continued. 
 (d) 415 Compensation includes differential wage payments (as defined in
Code Section 3401(h)) paid by the Employer to a former Employee who is performing qualified military services (as defined in Code Section 414(u)(1)) but only to the extent that those differential wage payments do not exceed the amounts the
individual would have received if the individual had continued to perform services for the Employer rather than entering qualified military service. 

(e) 415 Compensation in excess of $250,000 (as indexed) shall be disregarded for all Participants. For purposes of this
sub-section, the $265,000 limit shall be referred to as the “applicable limit” for the Plan Year in question. The $265,000 limit shall be adjusted for increases in the cost of living in accordance with Section 401(a)(17)(B) of the
Code, effective for the Plan Year which begins within the applicable calendar year. For purposes of the applicable limit, 415 Compensation shall be prorated over short Plan Years and only compensation for the portion of the Plan Year during
which the individual was a Participant shall be taken into account. 
 “Highly Compensated Employee” for any Plan Year
means an Employee who, during either that or the immediately preceding Plan Year was at any time a five percent owner of the Employer (as defined in Code Section 416(i)(1)) or, during the immediately preceding Plan Year, had 415 Compensation
exceeding $120,000 (as adjusted). The applicable year for which a determination is being made is called a “determination year” and the preceding 12-month period is called a look-back year. 

  
 4 

 “Hours of Service” means hours to be credited to an Employee under the following
rules: 
 (a) Each hour for which an Employee is paid or is entitled to be paid for services to an Employer is an Hour of
Service. 
 (b) Each hour for which an Employee is directly or indirectly paid or is entitled to be paid for a period of
vacation, holidays, illness, disability, lay-off, jury duty, temporary military duty, or leave of absence is an Hour of Service. However, except as otherwise specifically provided, no more than 501 Hours of
Service shall be credited for any single continuous period which an Employee performs no duties. No more than 501 Hours of Service will be credited under this paragraph for any single continuous period (whether or not such period occurs in a single
computation period). Further, no Hours of Service shall be credited on account of payments made solely under a plan maintained to comply with worker’s compensation, unemployment compensation, or disability insurance laws, or to reimburse an
Employee for medical expenses. 
 (c) Each hour for which back pay (ignoring any mitigation of damages) is either awarded or
agreed to by an Employer is an Hour of Service. However, no more than 501 Hours of Service shall be credited for any single continuous period during which an Employee would not have performed any duties. The same Hours of Service will not be
credited both under paragraph (a) or (b) as the case may be, and under this paragraph (c). These hours will be credited to the employee for the computation period or periods to which the award or agreement pertains rather than the
computation period in which the award agreement or payment is made. 
 (d) Hours of Service shall be credited in any one
period only under one of the foregoing paragraphs (a), (b) and (c); an Employee may not get double credit for the same period. 

(e) If an Employer finds it impractical to count the actual Hours of Service for any class or group of non-hourly Employees, each Employee in that class or group shall be credited with 90 Hours of Service for each bi-weekly pay period in which he has at least one Hour of Service. However, an Employee shall be
credited only for his normal working hours during a paid absence. 
 (f) Hours of Service to be credited on account of a
payment to an Employee (including back pay) shall be recorded in the period of Service for which the payment was made. If the period overlaps two or more Plan Years, the Hours of Service credit shall be allocated in proportion to the respective
portions of the period included in the several Plan Years. However, in the case of periods of 31 days or less, the Committee may apply a uniform policy of crediting the Hours of Service to either the first Plan Year or the second. 

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

  
 5 

 “Investment Fund” means that portion of the Trust Fund consisting of assets
other than Stock. Notwithstanding the above, assets from the Investment Fund may be used to purchase Stock in the open market or otherwise, or used to pay on the Exempt Loan, and shares so purchased will be allocated to a Participant’s Stock
Fund. 
 “Normal Retirement” means retirement on or after the Participant’s Normal Retirement Date. 

“Normal Retirement Date” means the Participant’s 65th birthday.

 “One Year Period of Severance” means a twelve (12) consecutive month period following an Employee’s Severance
from Employment with the Employer during which the Employee did not perform an Hour of Service. Notwithstanding the foregoing, if an Employee is absent for maternity or paternity reasons, such absence during the twenty-four (24) month period
commencing on the first date of such absence shall not constitute a One Year Period of Severance. An absence from employment for maternity or paternity reasons means an absence: 

(a) by reason of the pregnancy of the Employee; 

(b) by reason of the birth of a child of the Employee; 

(c) by reason of the placement of a child with the Employee in connection with the adoption of such child by such Employee; or

 (d) for purposes of caring for such child for a period beginning immediately following such birth or placement. 

“Participant” means any Eligible Employee who is an Active Participant participating in the Plan, or Eligible Employee or
former Employee who was previously an Active Participant and still has a balance credited to his Account. 
 “Period of
Service” means a period commencing on the date an Employee first performs an Hour of Service for the Employer upon initial employment or, if applicable, upon reemployment, and ending on the date such Employee first incurs a Severance from
Employment. Notwithstanding the foregoing, the period between the first and second anniversary of the first date of a maternity or paternity absence described under “One Year Period of Severance” shall not be included in determining a
Period of Service. A period during which an individual was not employed by the Employer shall nevertheless be deemed a Period of Service if such individual incurred a Severance from Employment and: 

(a) such Severance from Employment was the result of resignation, discharge or retirement and such individual is reemployed by
the Employer within one (1) year of such Severance from Employment; or 
 (b) such Severance from Employment occurred
when the individual was otherwise absent for less than one (1) year and was reemployed by the Employer within one (1) year of the date such absence began. 

  
 6 

 “Period of Uniformed Service” means the length of time that an Employee serves
in the Uniformed Services. 
 “Plan Year” means the twelve-month period commencing
January 1 and ending December 31 and each period of 12 consecutive months beginning on January 1 of each succeeding year. 

“Recognized Absence” means a period for which — 

(a) an Employer grants an Employee a leave of absence for a limited period, but only if an Employer grants such leave on a
nondiscriminatory basis; or 
 (b) an Employee is temporarily laid off by an Employer because of a change in business
conditions; or 
 (c) an Employee is on active military duty, but only to the extent that his employment rights are protected
by the Military Selective Service Act of 1967 (38 U.S.C. Sec. 2021). 
 “Reemployment After a Period of Uniformed Service”

 (a) “Reemployment (or Reemployed) After a Period of Uniformed Service” means that an Employee returned
to employment with a Participating Employer, within the time frame set forth in subparagraph (b) below, after a Period of Uniformed Service in the Uniformed Services and the following rules corresponding to provisions of the Uniformed Services
Employment and Reemployment Rights Act of 1994 (“USERRA”) apply: (i) he or she gives sufficient notice of leave to the Participating Employer prior to commencing a Period of Uniformed Service, or is excused from providing such
notice; (ii) his or her employment with the Participating Employer prior to a Period of Uniformed Service was not of a brief, nonrecurrent nature that would preclude a reasonable expectation that such employment would continue indefinitely or
for a significant period; (iii) the Participating Employer’s circumstances have not changed so that reemployment is unreasonable or an undue hardship to the Participating Employer; and (iv) the applicable cumulative Periods of
Uniformed Service under USERRA equals five years or less, unless service in the Uniformed Services: 
 (1) in excess of five
years is required to complete an initial Period of Uniformed Service; 
 (2) prevents the Participant from obtaining orders
releasing him or her from such Period of Uniformed Service prior to the expiration of a five-year period (through no fault of the Participant); 

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

  
 7 

 (4) for a Participant is 

(A) required other than for training under any provisions of law during a war or national agency declared by the President or
Congress; 
 (B) required (other than for training) in support of an operational mission for which personnel have been
ordered to active duty other than during war or national emergency; 
 (C) required in support of a critical mission or
requirement of the Uniformed Services; or 
 (D) the result of being called into service as a member of the National Guard
by the President in the case of rebellion or danger of rebellion against the authority of the United States Government or if the President is unable to execute the laws of the United States with the regular forces. 

(b) The applicable statutory time frames within which an Employee must report to a Participating Employer after a Period of
Uniformed Service are as follows: 
 (1) If the Period of Uniformed Service was less than 31 days, 

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

 (B) as soon as possible after the expiration of the eight-hour period of time referred to in Clause (A), if reporting
within the period referred to in such clause is impossible or unreasonable through no fault of the Employee. 
 (2) In the
case of an Employee whose Period of Uniformed Service was for more than 30 days but less than 181 days, by submitting an application for reemployment with a Participating Employer not later than 14 days after the completion of the Period of
Uniformed Service or, if submitting such application within such period is impossible or unreasonable through no fault of the Employee, the next first full calendar day when submission of such application becomes reasonable. 

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

  
 8 

 (4) In the case of an Employee who is hospitalized for, or convalescing from, an
illness or injury related to the Period of Uniformed Service the Employee shall apply for reemployment with a Participating Employer at the end of the period that is necessary for the Employee to recover. Such period of recovery shall not exceed two
years, unless circumstances beyond the Employee’s control make reporting as above unreasonable or impossible. 
 (c)
Notwithstanding subparagraph (a), Reemployment After a Period of Uniformed Service terminates upon the occurrence of any of the following: 

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

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

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

“Service” means an Employee’s period(s) of employment or self-employment with an
Employer, excluding for initial eligibility purposes any period in which the individual was a nonresident alien and did not receive from an Employer any earned income which constituted income from sources within the United States. An Employee’s
Service shall include any Service which constitutes Service with a predecessor Employer within the meaning of Section 414(a) of the Code, provided, however, that Service with an acquired entity shall not be considered Service under the Plan
unless required by applicable law or agreed to by the parties to such transaction. An Employee’s Service shall also include any Service with an entity which is not an Employer, but only either (i) in which the other entity is a member of a
controlled group of corporations or is under common control with other trades and businesses within the meaning of Section 414(b) or 414(c) of the Code, and a member of the controlled group or one of the trades and businesses is an Employer,
(ii) in which the other entity is a member of an affiliated service group within the meaning of Section 414(m) of the Code, and a member of the affiliated service group is an Employer, or (iii) all Employers aggregated with the
Employer under Section 414(o) of the Code (but not until the Proposed Regulations under Section 414(o) become effective). Notwithstanding any provision of this Plan to the contrary, contributions, benefits and service credit with respect
to qualified military service will be provided in accordance with Section 414(u) of the Code. 
 “Spouse” means the
individual, if any, to whom a Participant is lawfully married on the date benefit payments to the Participant are to begin, or on the date of the Participant’s death, if earlier. A former Spouse shall be treated as the Spouse or surviving
Spouse to the extent 

  
 9 

 
provided under a qualified domestic relations order as described in section 414(p) of the Code. Pursuant to Revenue Ruling 2013-17, for federal tax purposes, the terms “Spouse” includes
an individual married to a person of the same sex if the individuals are lawfully married under state law, and the term “marriage” includes such a marriage between individuals of the same sex. A marriage of the same-sex individuals that
was validly entered into in a state whose laws authorize the marriage of two individuals of the same sex shall be recognized by the Plan, even if the married couple is domiciled in a state that does not recognize the validity of same-sex marriages.

 “Stock” means common stock issued by the Employer (or by a corporation which is a member of the same controlled group)
which is readily tradable on an established securities market. “Readily tradable on an established securities market,” as referenced in this Plan, shall be defined in accordance with Treasury Regulation Section 1.401(a)(25)-1(f)(5)
for purposes of Code Sections 401(a)(22), 401(a)(28)(C) and 409(h)(1)(B) and 409(l). In the event there is no common stock which meets the requirements of the preceding sentence, then “Stock” means common stock issued by the Employer (or
by a corporation which is a member of the same controlled group) having a combined voting power and dividend rights equal to or in excess of (A) that class of common stock of the Employer (or of any other such corporation) having the greatest
voting power; and (B) that class of common stock of the Employer (or of any other such corporation) having the greatest dividend rights. 

“Stock Fund” means that portion of the Trust Fund consisting of Stock. The Stock Fund is merely a recordkeeping mechanism
used by the Trustee to track the Stock held by the Plan. The Stock Fund is neither a mutual fund nor a diversified or managed investment option. 

“Trust” or “Trust Fund” means the trust fund created under this Plan. 

“Trust Agreement” means the agreement between the Bank and the Trustee concerning the Trust Fund. If any assets of the Trust
Fund are held in a co-mingled trust fund with assets of other qualified retirement plans, “Trust Agreement” shall be deemed to include the trust agreement governing that co-mingled trust fund. With respect to the allocation of investment responsibility for the assets of the Trust Fund, the provisions of Article II of the Trust Agreement are incorporated herein by reference. 

“Trustee” means one or more corporate persons or individuals selected from time to time by the Bank to serve as trustee or co-trustees of the Trust Fund. 
 “Unallocated Stock Fund” means that portion of the
Stock Fund consisting of the Plan’s holding of Stock which have been acquired in exchange for one or more Exempt Loans and which have not yet been allocated to the Participant’s Accounts in accordance with Section 4.2 of the Plan.

 “Uniformed Service” means the performance of duty on a voluntary or involuntary basis in the uniformed service of the
United States, including the U.S. Public Health Services, under competent authority and includes active duty, active duty for training, initial activity duty for training, inactive duty training, full-time National Guard duty, and the period for
which a person is absent from a position of employment for purposes of an examination to determine the fitness of the person to perform any such duty. 

  
 10 

 “Valuation Date” means for so long as there is a generally recognized market for
the Stock each business day. If at any time there shall be no generally recognized market for the Stock, then “Valuation Date” shall mean the last day of the Plan Year and each other date as of which the Committee shall determine the
investment experience of the Investment Fund and adjust the Participants’ Accounts accordingly. 
 “Valuation Period”
means the period following a Valuation Date and ending with the next Valuation Date. 
 “Vesting Year” means a unit of
Service credited to a Participant pursuant to Section 9.2 of the Plan for purposes of determining his vested interest in his Account. 

Section 3. Eligibility for Participation. 

3.1 Initial Eligibility. An Eligible Employee shall enter the Plan as of the Entry Date coincident with or next following the
date the Eligible Employee completes three months of Service and has attained age 20. Notwithstanding the foregoing, an Employee who is an Eligible Employee on or prior to the Closing Date shall enter the Plan, retroactively, on the Effective Date.

 3.2 Terminated Employees. No Employee shall have any interest or rights under this Plan if he is never in active Service
with an Employer on or after the Effective Date. 
 3.3 Certain Employees Ineligible. 

3.3-1. No Employee shall participate in the Plan while his Service is covered by a collective bargaining agreement between an
Employer and the Employee’s collective bargaining representative if (i) retirement benefits have been the subject of good faith bargaining between the Employer and the representative and (ii) the collective bargaining agreement does
not provide for the Employee’s participation in the Plan. 
 3.3-2. Leased Employees are not eligible to participate in
the Plan. 
 3.3-3. Employees who are nonresident aliens with no earned income (within the meaning of Code
Section 911(d)(2)) from the Employer which constitutes income from sources within the United States (within the meaning of Code Section 861(a)(3)). 

3.3-4. An Eligible Employee may elect not to participate in the Plan, provided, however, such election is made solely to meet
the requirements of Code Section 409(n). For an election to be effective for a particular Plan Year, the Eligible Employee or Participant must file the election in writing with the Committee no later than the last day of the Plan Year for which
the election is to be effective. The Employer may not make a contribution under the Plan for the Eligible Employee or for the Participant for the Plan Year for which the election is effective, nor for any succeeding Plan Year, unless the Eligible
Employee or Participant re-elects to participate in the Plan. The Eligible Employee or Participant may elect again not to participate, but not earlier than the first Plan Year following the Plan Year in which the re-election was first effective.

  
 11 

 3.4 Participation after Reemployment. If an Employee incurs a One Year Period of
Severance prior to satisfying the eligibility requirements of Section 3.1 of the Plan, Service prior to such One Year Period of Severance shall be disregarded and the Employee must satisfy the eligibility requirements of Section 3.1 of the
Plan as a new Employee. If an Employee incurs a One Year Period of Severance after satisfying the eligibility requirements of Section 3.1 of the Plan and again performs an Hour of Service, the Employee shall receive credit for the Period of
Service prior to his One Year Period of Severance and shall be eligible to participate in the Plan immediately upon reemployment, provided the Employee is not excluded from participation under the provisions of Section 3.3 of the Plan. 

3.5 Omission of Eligible Employee. If, in any Plan Year, any Eligible Employee who should be included as a Participant in the
Plan is erroneously omitted and discovery of such omission is not made until after a contribution by his Employer for the year has been made, the Employer shall make a subsequent contribution with respect to the omitted Eligible Employee in the
amount which the said Employer would have contributed regardless of whether or not it is deductible in whole or in part in any taxable year under applicable provisions of the Code. 

3.6 Inclusion of Ineligible Employee. If, in any Plan Year, any person who should not have been included as a Participant in the
Plan is erroneously included and discovery of such incorrect inclusion is not made until after a contribution for the year has been made, the Employer shall not be entitled to recover the contribution made with respect to the ineligible person
regardless of whether or not a deduction is allowable with respect to such contribution. In such event, the amount contributed with respect to the ineligible person shall constitute a forfeiture for the fiscal year in which the discovery is made.
Any person who, after the close of a Plan Year, is retroactively treated by the Company, an affiliated company or any other party as an Employee for such prior Plan Year shall not, for purposes of the Plan, be considered an Employee for such prior
Plan Year unless expressly so treated as such by the Company. 
 Section 4. Contributions and Credits. 

4.1 Discretionary Contributions. 

4.1-1. The Employer shall from time to time contribute, with respect to a Plan Year, such amounts as it may determine from time
to time. The Employer shall have no obligation to contribute any amount under this Plan except as so determined in its sole discretion. The Employer’s contributions and available forfeitures for a Plan Year shall be credited as of the last day
of the year to the Accounts of the Active Participants in the manner set forth in Section 8.1-2 of the Plan. 
 4.1-2.
Upon a Participant’s Reemployment After a Period of Uniformed Service, the Employer shall make an additional contribution on behalf of the Participant that would have been made on his or her behalf during the Plan Year or Years corresponding to
the Participant’s Period of Uniformed Service. 

  
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 4.2 Contributions for Exempt Loans. If the Trustee, upon instructions from the
Committee, incurs any Exempt Loan upon the purchase of Stock, the Employer may contribute for each Plan Year an amount sufficient to cover all payments of principal and interest as they come due under the terms of the Exempt Loan. If there is more
than one Exempt Loan, the Employer shall designate the one to which any contribution is to be applied. Investment earnings realized on Employer contributions and any dividends paid by the Employer on Stock held in the Unallocated Stock Fund, shall
be applied to the Exempt Loan related to that Stock, subject to Section 7.2 of the Plan. 
 In each Plan Year in which Employer
contributions, earnings on contributions, or dividends on Stock in the Unallocated Stock Fund are used as payments under an Exempt Loan, a certain number of shares of the Stock acquired with that Exempt Loan which is then held in the Unallocated
Stock Fund shall be released for allocation among the Participants. The number of shares released shall bear the same ratio to the total number of those shares then held in the Unallocated Stock Fund (prior to the release) as (i) the principal
and interest payments made on the Exempt Loan in the current Plan Year bears to (ii) the sum of (i) above, and the remaining principal and interest payments required (or projected to be required on the basis of the interest rate in effect
at the end of the Plan Year) to satisfy the Exempt Loan. 
 At the direction of the Committee, the current and projected payments of
interest under an Exempt Loan may be ignored in calculating the number of shares to be released in each year if (i) the Exempt Loan provides for annual payments of principal and interest at a cumulative rate that is not less rapid at any time
than level annual payments of such amounts for 10 years, (ii) the interest included in any payment is ignored only to the extent that it would be determined to be interest under standard loan amortization tables, and (iii) the term of the
Exempt Loan, by reason of renewal, extension, or refinancing, has not exceeded 10 years from the original acquisition of the Stock. 
 4.3
Conditions as to Contributions. Employers’ contributions shall in all events be subject to the limitations set forth in Section 5 of the Plan. Contributions may be made in the form of cash, or securities and other property to
the extent permissible under ERISA, including Stock, and shall be held by the Trustee in accordance with the Trust Agreement. In addition to the provisions of Section 13.2 of the Plan for the return of an Employer’s contributions in
connection with a failure of the Plan to qualify initially under the Code, any amount contributed by an Employer due to a good faith mistake of fact, or based upon a good faith but erroneous determination of its deductibility under Section 404
of the Code, shall be returned to the Employer within one year after the date on which the contribution was originally made, or within one year after its nondeductibility has been finally determined. However, the amount to be returned shall be
reduced to take account of any adverse investment experience within the Trust Fund in order that the balance credited to each Participant’s Account is not less that it would have been if the contribution had never been made. 

4.4 Rollover Contributions. This Plan shall not accept a direct rollover or rollover contribution of an “eligible rollover
distribution” as such term is defined in Section 10.9-1 of the Plan. 

  
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 Section 5. Limitations on Contributions and Allocations. 

5.1 Limitation on Annual Additions. Notwithstanding anything herein to the contrary, allocation of Employer contributions for any
Plan Year shall be subject to the following: 
 5.1-1 If allocation of Employer contributions in accordance with
Section 4.1 of the Plan will result in an allocation of more than one-third the total contributions for a Plan Year to the accounts of Highly Compensated Employees, and such allocation would cause any Highly Compensated Employee to exceed the
limitations under Code Section 415(c) or the Employer to exceed the deduction limits under Code Section 404, then no more than one-third of the Employer contributions used for repayment of any Exempt Loan in accordance with
Section 4.2 of the Plan shall be allocated to the accounts of Highly Compensated Employees (within the meaning of Code Section 414(q)), with the remaining Employer contributions to be made to non-Highly Compensated Employees in the manner
specified under Section 8.1 of the Plan. Such adjustments shall be made before any allocations occur. 
 5.1-2 After
adjustment, if any, required by the preceding paragraph, the annual additions during any Plan Year to any Participant’s Account under this and any other defined contribution plans maintained by the Employer or an affiliate (within the purview
of Section 414(b), (c) and (m) and Section 415(h) of the Code, which affiliate shall be deemed the Employer for this purpose) shall not exceed the lesser of $53,000 (for 2015, or such other dollar amount which results from
cost-of-living adjustments under Section 415(d) of the Code) (the “dollar limitation”) or 100 percent of the Participant’s 415 Compensation for such limitation year (the “percentage limitation”). In the event Stock is
released from the Unallocated Stock Fund and allocated to a Participant’s Account for a particular Plan Year, the Employer may determine for such year that an annual addition shall be calculated on the basis of the fair market value of the
Stock so released and allocated (such fair market value to be based on the valuation as of the Valuation Date immediately preceding the Plan Year in respect of which the release and allocation are made) if the annual addition, as so calculated, is
lower than the annual addition calculated on the basis of Employer contributions. The percentage limitation shall not apply to any contribution for medical benefits after severance from employment (within the meaning of Section 401(h) or
Section 419A(f)(2) of the Code) which is otherwise treated as an annual addition. If, as a result of the allocation of forfeitures, a reasonable error in estimating a Participant’s annual compensation, a reasonable error in determining the
amount of elective deferrals (within the meaning of Code Section 402(g)(3)) that may be made with respect to any individual under the limits of Code Section 415, or under other limited facts and circumstances that the Commissioner of the
Internal Revenue Service finds justify the availability of the rules set forth in this paragraph, the annual additions under the terms of the Plan for a particular Participant would cause the limitations of Code Section 415 applicable to that
Participant for the limitation year to be exceeded, the Plan may only correct such excess in accordance with the Employee Plans Compliance Resolution System (EPCRS) as set forth in Revenue Procedure 2013-12 or any subsequent guidance. 

  
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 5.1-3 For purposes of this Section 5.1, the “annual addition” to a
Participant’s Accounts means the sum of (i) Employer contributions, (ii) Employee contributions, if any, and (iii) forfeitures. For these purposes, annual additions to a defined contribution plan shall not include the allocation
of the excess amounts remaining in the Unallocated Stock Fund subsequent to a sale of stock from such fund in accordance with a transaction described in Section 8.1 of the Plan. Notwithstanding the foregoing, “annual additions” shall
not include a restorative payment in accordance with Treasury Regulation Section 1.415(c)-1(b)(2)(C) that is made to restore losses to the Plan resulting from actions by a fiduciary for which there is a reasonable risk of liability for breach
of fiduciary duty under ERISA or other applicable federal and state law. 
 In the event Stock is released from the
Unallocated Stock Fund and allocated to a Participant’s Account for a particular Plan Year, the Employer may determine for such year that an annual addition shall be calculated on the basis of the fair market value of the Stock so released and
allocated (such fair market value to be based on the valuation as of the Valuation Date immediately preceding the Plan Year in respect of which the release and allocation are made) if the annual addition, as so calculated, is lower than the annual
addition calculated on the basis of Employer contributions. 
 5.1-4 Notwithstanding the foregoing, if no more than one-third
of the Employer contributions to the Plan for a year which are deductible under Section 404(a)(9) of the Code are allocated to Highly Compensated Employees (within the meaning of Section 414(q) of the Internal Revenue Code), the
limitations imposed herein shall not apply to: 
 (i) forfeitures of Employer securities (within the meaning of
Section 409 of the Code) under the Plan if such securities were acquired with the proceeds of a loan described in Section 404(a)(9)(A) of the Code), or 

(ii) Employer contributions to the Plan which are deductible under Section 404(a)(9)(B) and charged against a
Participant’s Account. 
 5.1-5 If the Employer contributes amounts, on behalf of Eligible Employees covered by this
Plan, to other “defined contribution plans” as defined in Section 3(34) of ERISA, the limitation on annual additions provided in this Section shall be applied to annual additions in the aggregate to this Plan and to such other plans.
Reduction of annual additions, where required, shall be accomplished first by reductions under such other plan pursuant to the directions of the named fiduciary for administration of such other plans or under priorities, if any, established under
the terms of such other plans and then by allocating any remaining excess for this Plan in the manner and priority set out above with respect to this Plan. 

5.1-6 A limitation year shall mean each 12 consecutive month period ending on December 31. 

5.2 Effect of Limitations. The Committee shall take whatever action may be necessary from time to time to assure compliance with
the limitations set forth in Section 5.1 of the Plan. Specifically, the Committee shall see that each Employer restrict its contributions for 

  
 15 

 
any Plan Year to an amount which, taking into account the amount of available forfeitures, may be completely allocated to the Participants consistent with those limitations. Where the limitations
would otherwise be exceeded by any Participant, further allocations to the Participant shall be curtailed to the extent necessary to satisfy the limitations. Where an excessive amount is contributed on account of a mistake as to one or more
Participants’ compensation, or there is an amount of forfeitures which may not be credited in the Plan Year in which it becomes available, the amount shall be corrected in accordance with Section 5.1-2 of the Plan. If it is determined at
any time that the Committee and/or Trustee has erred in accepting and allocating any contributions or forfeitures under this Plan, or in allocating net gain or loss pursuant to Sections 8.2 and 8.3 of the Plan, then the Committee, in a uniform and
nondiscriminatory manner, shall determine the manner in which such error shall be corrected and shall promptly advise the Trustee in writing of such error and of the method for correcting such error. The Accounts of any or all Participants may be
revised, if necessary, in order to correct such error. 
 5.3 Limitations as to Certain Participants. Aside from the
limitations set forth in Section 5.1 of the Plan, if the Plan acquires any Stock in a transaction as to which a selling shareholder or the estate of a deceased shareholder is claiming the benefit of Section 1042 of the Code, the Committee
shall see that none of such Stock, and no other assets in lieu of such Stock, are allocated to the Accounts of certain Participants in order to comply with Section 409(n) of the Code. 

This restriction shall apply at all times to a Participant who owns (taking into account the attribution rules under Section 318(a) of
the Code, without regard to the exception for employee plan trusts in Section 318(a)(2)(B)(i) more than 25 percent of any class of stock of a corporation which issued the Stock acquired by the Plan, or another corporation within the same
controlled group, as defined in Section 409(l)(4) of the Code (any such class of stock hereafter called a “Related Class”). For this purpose, a Participant who owns more than 25 percent of any Related Class at any time within the one
year preceding the Plan’s purchase of the Stock shall be subject to the restriction as to all allocations of the Stock, but any other Participant shall be subject to the restriction only as to allocations which occur at a time when he owns more
than 25 percent of any Related Class. 
 Further, this restriction shall apply to the selling shareholder claiming the benefit of
Section 1042 and any other Participant who is related to such a shareholder within the meaning of Section 267(b) of the Code, during the period beginning on the date of sale and ending on the later of (1) the date that is ten years
after the date of sale, or (2) the date of the Plan allocation attributable to the final payment of acquisition indebtedness incurred in connection with the sale. 

This restriction shall not apply to any Participant who is a lineal descendant of a selling shareholder if the aggregate amounts allocated
under the Plan for the benefit of all such descendants do not exceed five percent of the Stock acquired from the shareholder. 
 5.4
Erroneous Allocations. No Participant shall be entitled to any annual additions or other allocations to his Account in excess of those permitted under Section 5 of the Plan. If it is determined at any time that the administrator
and/or Trustee have erred in accepting and allocating any contributions or forfeitures under this Plan, or in allocating investment adjustments, or in excluding or including any person as a Participant, then the administrator, in a

  
 16 

 
uniform and nondiscriminatory manner, shall determine the manner in which such error shall be corrected, after taking into consideration Sections 3.5 and 3.6 of the Plan and any revenue procedure
or other notice published by the Internal Revenue Service regarding permissible correction methods, if applicable, and shall promptly advise the Trustee in writing of such error and of the method for correcting such error. The Accounts of any or all
Participants may be revised, if necessary, in order to correct such error. 
 Section 6. Trust Fund and Its Investment. 

6.1 Creation of Trust Fund. All amounts received under the Plan from Employers and investments shall be held as the Trust Fund
pursuant to the terms of this Plan and of the Trust Agreement between the Bank and the Trustee. The benefits described in this Plan shall be payable only from the assets of the Trust Fund, and none of the Bank, any other Employer, its board of
directors or trustees, its stockholders, its officers, its employees, the Committee, and the Trustee shall be liable for payment of any benefit under this Plan except from the Trust Fund. 

6.2 Stock Fund and Investment Fund. The Trust Fund held by the Trustee shall be divided into the Stock Fund, consisting entirely
of Stock, and the Investment Fund, consisting of all assets of the Trust other than Stock. The Trustee shall have no investment responsibility for the Stock Fund, but shall accept any Employer contributions made in the form of Stock, and shall
acquire, sell, exchange, distribute, and otherwise deal with and dispose of Stock in accordance with the instructions of the Committee. As a directed Trustee, the Trustee shall have such responsibility for the investment of the Investment Fund as
set forth in the Trust Agreement. 
 6.3 Acquisition of Stock. From time to time the Committee may, in its sole discretion,
direct the Trustee to acquire Stock from the issuing Employer or from shareholders, including shareholders who are or have been Employees, Participants, or fiduciaries with respect to the Plan. The Trustee shall pay for such Stock no more than its
fair market value, which shall be determined conclusively by the Committee pursuant to Section 12.4 of the Plan. The Committee may direct the Trustee to finance the acquisition of Stock by incurring or assuming indebtedness to the seller or
another party which indebtedness shall be called an “Exempt Loan.” The term “Exempt Loan” shall refer to a loan made to the Plan by a disqualified person within the meaning of Section 4975(e)(2) of the Code, or a loan to the
Plan which is guaranteed by a disqualified person. An Exempt Loan includes a direct loan of cash, a purchase-money transaction, and an assumption of an obligation of a tax-qualified employee stock ownership plan under Section 4975(e)(7) of the
Code (“ESOP”). For these purposes, the term “guarantee” shall include an unsecured guarantee and the use of assets of a disqualified person as collateral for a loan, even though the use of assets may not be a guarantee under
applicable state law. An amendment of an Exempt Loan in order to qualify as an “exempt loan” is not a refinancing of the Exempt Loan or the making of another Exempt Loan. The term “exempt loan” refers to a loan that is primarily
for the benefit of the Plan participants and their beneficiaries and that satisfies the provisions of this paragraph. A “non-exempt loan” fails to satisfy this paragraph. Any Exempt Loan shall be subject to the following conditions and
limitations: 
 6.3-1 All Exempt Loans incurred by the Plan must be primarily for the benefit of Plan Participants and
Beneficiaries, and an Exempt Loan shall be for a specific term, shall not be payable on demand except in the event of default, and shall bear a reasonable 

  
 17 

 
rate of interest, such that the interest rate and the price of the securities to be acquired with the Exempt Loan will not cause the Plan’s assets to be inappropriately impaired in violation
of Treasury Regulation Section 54.4975-7(b)(3). 
 6.3-2 An Exempt Loan may, but need not, be secured by a collateral
pledge of either the Stock acquired in exchange for the Exempt Loan, or the Stock previously pledged in connection with a prior Exempt Loan which is being repaid with the proceeds of the current Exempt Loan. No other assets of the Plan and Trust may
be used as collateral for an Exempt Loan, and no creditor under an Exempt Loan shall have any right or recourse to any Plan and Trust assets other than Stock remaining subject to a collateral pledge. 

6.3-3 Any pledge of Stock to secure an Exempt Loan must provide for the release of pledged Stock in connection with payments on
the Exempt Loans in the ratio prescribed in Section 4.2 of the Plan. 
 6.3-4 Repayments of principal and interest on
any Exempt Loan shall be made by the Trustee only from Employer cash contributions designated for such payments, from earnings on such contributions, and from cash dividends received on Stock, in the last case, however, subject to the further
requirements of Section 7.2 of the Plan. The payment on the Exempt Loan during the Plan Year must not exceed an amount equal to the sum of contributions and earnings received during such year or prior to such year, less such payments in prior
years. The contributions and earnings must be accounted for separately in the books and accounts of the Plan until the Exempt Loan is fully repaid. 

6.3-5 In the event of default of an Exempt Loan, the value of Plan assets transferred in satisfaction of the Exempt Loan must
not exceed the amount of the default. If the lender is a disqualified person within the meaning of Section 4975 of the Code, an Exempt Loan must provide for a transfer of Plan assets upon default only upon and to the extent of the failure of
the Plan to meet the payment schedule of said Exempt Loan. For purposes of this paragraph, the making of a guarantee does not make a person a lender. 

6.4 Participants’ Option to Diversify. The Committee shall provide for a procedure under which each Participant may, during
the qualified election period, elect to “diversify” a portion of the Employer Stock allocated to his Account, as provided in Section 401(a)(28)(B) of the Code. An election to diversify must be made on the prescribed form and filed
with the Committee within the period specified herein. For each of the first five (5) Plan years in the qualified election period, the Participant may elect to diversify an amount which does not exceed 25 percent of the number of shares
allocated to his Account since the inception of the Plan, less all shares with respect to which an election under this Section has already been made. For the last year of the qualified election period, the Participant may elect to have up to 50
percent of the value of his Account committed to other investments, less all shares with respect to which an election under this Section has already been made. The term “qualified election period” shall mean the six (6) Plan Year
period beginning with the first Plan Year in which a Participant has both attained age 55 and completed 10 years of participation in the Plan. A Participant’s election to diversify his Account may be made within each year of the qualified
election period and shall continue for the 90-day period immediately following the last day of each year in the qualified 

  
 18 

 
election period. Once a Participant makes such election, the Plan must complete diversification in accordance with such election within 90 days after the end of the period during which the
election could be made for the Plan Year. In the discretion of the Committee, the Plan may satisfy the diversification requirement by any of the following methods: 

6.4-1 The Plan may distribute all or part of the amount subject to the diversification election. 

6.4-2 The Plan may offer the Participant at least three other distinct investment options, if available under the Plan. The
other investment options shall satisfy the requirements of Regulations under Section 404(c) of ERISA. 
 6.4-3 The Plan
may transfer the portion of the Participant’s Account subject to the diversification election to another qualified defined contribution plan of the Employer that offers at least three investment options satisfying the requirements of the
Regulations under Section 404(c) of ERISA. 
 Section 7. Voting Rights and Dividends on Stock. 

7.1 Voting and Tendering of Stock. 

7.1-1 The Trustee generally shall vote all shares of Stock held under the Plan in accordance with the written instructions of
the Committee. However, if any Employer has a registration-type class of securities within the meaning of Section 409(e)(4) of the Code, or if a matter submitted to the holders of the Stock involves
a merger, consolidation, recapitalization, reclassification, liquidation, dissolution, or sale of substantially all assets of an entity, then (i) the shares of Stock which have been allocated to Participants’ Accounts shall be voted by the
Trustee in accordance with the Participants’ written instructions, and (ii) the Trustee shall vote any unallocated Stock, allocated Stock for which it has received no voting instructions, and Stock for which Participants vote to
“abstain,” in the same proportions as it votes the allocated Stock for which it has received instructions from Participants. In the event no shares of Stock have been allocated to Participants’ Accounts at the time Stock is to be
voted and any exempt loan which may be outstanding is not in default, each Participant shall be deemed to have one share of Stock allocated to his or her Account for the sole purpose of providing the Trustee with voting instructions. 

Notwithstanding any provision hereunder to the contrary, all unallocated shares of Stock must be voted by the Trustee in a
manner determined by the Trustee to be for the exclusive benefit of the Participants and Beneficiaries. Whenever such voting rights are to be exercised, the Employers shall provide the Trustee, in a timely manner, with the same notices and other
materials as are provided to other holders of the Stock, which the Trustee shall distribute to the Participants. The Participants shall be provided with adequate opportunity to deliver their instructions to the Trustee regarding the voting of Stock
allocated to their Accounts. The instructions of the Participants’ with respect to the voting of allocated shares hereunder shall be confidential. 

  
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 7.1-2 In the event of a tender offer, Stock shall be tendered by the Trustee in
the same manner as set forth above with respect to the voting of Stock. Notwithstanding any provision hereunder to the contrary, Stock must be tendered by the Trustee in a manner determined by the Trustee to be for the exclusive benefit of the
Participants and Beneficiaries. 
 7.2 Application of Dividends. 

7.2-1 Stock Dividends. Dividends on Stock which are received by the Trustee in the form of additional Stock shall be
retained in the Stock Fund, and shall be allocated among the Participants’ Accounts and the Unallocated Stock Fund in accordance with their holdings of the Stock on which the dividends are paid. 

7.2-2 Cash Dividends. The treatment of dividends paid in cash shall be determined after consideration to whether the
cash dividends are paid on Stock held in Participants’ Accounts or the Unallocated Stock Fund. 
 (i) On Stock in
Participants’ Accounts. 
 (A) Employer Exercises Discretion. Dividends on Stock credited to
Participants’ Accounts which are received by the Trustee in the form of cash shall, at the direction of the Employer paying the dividends, either (I) be credited to the Accounts in accordance with Section 8.4(iii) of the Plan and
invested as part of the Investment Fund, (II) be distributed immediately to the Participants in proportion with the Participants’ Stock Fund Account balance (III) be distributed to the Participants within 90 days of the close of the Plan Year
in which paid in proportion with the Participants’ Stock Fund Account balance or (IV) be used to make payments on the Exempt Loan. If dividends on Stock allocated to a Participant’s Account are used to repay the Exempt Loan, Stock with a
fair market value equal to the dividends so used must be allocated to such Participant’s Account in lieu of the dividends. 

(B) Participant Exercises Discretion over Dividend. In addition, in the sole discretion of the Employer, the Employer
may grant Participants the right to elect: (I) to have cash dividends paid on shares of Stock credited to such Participants’ Stock Fund Accounts distributed to the Participant, or (II) to leave the cash dividends allocated to the
Participant’s Account in the Plan, to be credited to the Stock Fund Account and invested in shares of Stock. Dividends on which such election may be made will be fully vested in the Participant (even if not otherwise vested, absent the ability
to make such election). Accordingly, the Employer may choose to offer this election only to Participants who are fully vested in their Account. In the event the Employer elects to give Participants the right to determine the treatment of such
dividends, the Participant’s election shall be made by filing with the Committee the appropriate written direction as provided by the Committee at such time 

  
 20 

 
and in accordance with such procedures and limitations which the Committee may from time to time establish; provided, however, that the procedures established by the Committee shall provide a
reasonable opportunity to change the election at least annually, may establish a default election if a Participant fails to make an affirmative election within the time established for making elections, may provide that the election is applicable
for the Plan Year and cannot be revoked with respect to such Plan Year, shall otherwise be implemented in a manner such that the dividends paid or reinvested will constitute “applicable dividends” which may be deducted under Code
Section 404(k), and are in accordance with applicable guidance issued or to be issued by the Secretary of the Treasury. If the Employer elects to give Participants the right to exercise the discretion in this Paragraph 7.2-2(i)(B), the ability
to make such election shall be available to the Participant with respect to dividends paid for the entire Plan Year. 
 (ii)
On Stock in the Unallocated Stock Fund. Dividends received on shares of Stock held in the Unallocated Stock Fund shall be applied to the repayment of principal and interest then due on the Exempt Loan used to acquire such shares. If the
amount of dividends exceeds the amount needed to repay such principal and interest (including any prepayments of principal and interest deemed advisable by the Employer), then in the sole discretion of the Committee, the excess shall: (A) be
allocated to Active Participants, pro rata, in proportion to the Compensation of each such person that was earned during that portion of the Plan Year that such person participated in the Plan compared to total Compensation of each Active
Participant for such year, or (B) be deemed to be general earnings of the Trust Fund and used for paying appropriate Plan or Trust related expenditures for the Plan Year. Notwithstanding the foregoing, dividends paid on a share of Stock may not
be used to make payments on a particular Exempt Loan unless the share was acquired with the proceeds of such loan or a refinancing of such loan. 

Section 8. Adjustments to Accounts. 

8.1 ESOP Allocations. Amounts available for allocation for a particular Plan Year will be divided into two categories. The first
category relates to shares of Stock released from the Unallocated Stock Fund attributable to using cash dividends to make Exempt Loan payments. The second category relates to contributions made by the Employer, shares of Stock released from the
Unallocated Stock Fund on the basis of Employer contributions (or on the basis of the complete repayment of the Exempt Loan through the sale or other disposition of Stock in the Unallocated Stock Fund) and amounts forfeited from Stock Fund Accounts
pursuant to Section 9.5 of the Plan. 

  
 21 

 8.1-1 Shares of Stock attributable to the first category will be allocated to the
Stock Fund Accounts of eligible Participants as follows: 
 (i) first, if dividends paid on shares of Stock held in
Participants’ Stock Fund Accounts are used to make payments on an Exempt Loan, there shall be allocated to each such account a number of shares of Stock released from the Unallocated Stock Fund with a fair market value (determined as of the
Valuation Date coincident with or immediately preceding the loan payment date) that at least equals the amount of dividends so used, 

(ii) second, if necessary, any remaining shares of Stock shall be applied to reinstate amounts forfeited from Stock Fund
Accounts of former employees who are entitled to a reinstatement under Section 9.5 of the Plan, and 
 (iii) finally,
any remaining shares of Stock shall be allocated as of the last Valuation Date of the Plan Year for which they are allocated in the same manner as described in Section 8.1-2 of the Plan. 

8.1-2 Shares of Stock or cash attributable to the second category (i.e., Employer contributions, Stock released from the
Unallocated Stock Fund on the basis of Employer contributions, amounts forfeited, and, to the extent applicable, shares of Stock released in accordance with Section 8.1-1(iii) of the Plan) will be allocated to the Stock Fund Accounts or
Investment Fund Accounts, as the case may be, pro rata, in proportion to the Compensation of each Active Participant that was earned by such Participant during the period of the Plan Year in which such person participated in the Plan compared to
total Compensation for all Active Participants. 
 8.1-3 Shares of Stock or cash attributable to contributions made under
Section 4.1-2 of the Plan shall be allocated specifically to the Participants on whose behalf such contributions were made. 
 8.2
Charges to Accounts. When a Valuation Date occurs, any distributions made to or on behalf of any Participant or Beneficiary since the last preceding Valuation Date shall be charged to the proper Accounts maintained for that Participant
or Beneficiary. 
 8.3 Stock Fund Account. Subject to the provisions of Sections 5 and 8.1 of the Plan, as of the last
day of each Plan Year, the Trustee shall credit to each Participant’s Stock Fund Account: (a) the Participant’s allocable share of Stock purchased by the Trustee or contributed by the Employer to the Trust Fund for that year;
(b) the Participant’s allocable share of the Stock that is released from the Unallocated Stock Fund for that year; (c) the Participant’s allocable share of any forfeitures of Stock arising under the Plan during that year; and
(d) any stock dividends declared and paid during that year on Stock credited to the Participant’s Stock Fund Account. 
 If, in
any Plan Year during which an outstanding Exempt Loan exists, the Employer directs the Trustee to sell or otherwise dispose of a number of shares of Stock in the Unallocated Stock Fund sufficient to repay, in its entirety, the Exempt Loans, and
following such repayment, there remains Stock or other assets in the Unallocated Stock Fund, such Stock or other assets shall be allocated as of the last day of the Plan Year in which the repayment occurred as earnings of the Plan to Active
Participants, in proportion to the number of shares held in Active Participants’ Stock Fund Accounts. 

  
 22 

 8.4 Investment Fund Account. Subject to the provisions of Sections 5 and 8.1 of the
Plan as of the last day of each Plan Year, the Trustee shall credit to each Participant’s Investment Fund Account: (i) the Participant’s allocable share of any contribution for that year made by the Employer in cash or in property
other than Stock that is not used by the Trustee to purchase Employer Stock or to make payments due under an Exempt Loan; (ii) the Participant’s allocable share of any forfeitures from the Investment Fund Accounts of other Participants
arising under the Plan during that year; (iii) any cash dividends paid during that year on Stock credited to the Participant’s Stock Fund Account, other than dividends which are paid directly to the Participant and other than dividends
which are used to repay Exempt Loan; and (iv) the share of the net income or loss of the Trust Fund properly allocable to that Participant’s Investment Fund Account, as provided in Section 8.5 of the Plan. 

8.5 Adjustment to Value of Trust Fund. As of the last day of each Plan Year, the Trustee shall determine: (i) the net worth
of that portion of the Trust Fund which consists of properties other than Stock (the “Investment Fund”); and (ii) the increase or decrease in the net worth of the Investment Fund since the last day of the preceding Plan Year. The net
worth of the Investment Fund shall be the fair market value of all properties held by the Trustee under the Trust Agreement other than Stock, net of liabilities other than liabilities to Participants and their beneficiaries. The Trustee shall
allocate to the Investment Fund Account of each Participant that percentage of the increase or decrease in the net worth of the Investment Fund equal to the ratio which the balances credited to the Participant’s Investment Fund Account bear to
the total amount credited to all Participants’ Investments Fund Accounts. This allocation shall be made after application of Section 7.2 of the Plan, but before application of Sections 8.1, 8.4 and 5.1 of the Plan. 

8.6 Participant Statements. Each Plan Year, the Committee shall provide or shall cause to be provided to each Participant a
statement of his or her Account balances, and the vested percentage thereof, as of the last day of the Plan Year. 
 Section 9. Vesting of
Participants’ Interests. 
 9.1 Vesting in Accounts. A Participant’s vested interest in his Account
shall be based on his Vesting Years in accordance with the following table, subject to the balance of this Section 9: 
  

					
	 Year of

Service
	  	Percentage of
Interest Vested	 
	 0
	  	 	0	% 
	 1
	  	 	0	% 
	 2
	  	 	20	% 
	 3
	  	 	40	% 
	 4
	  	 	60	% 
	 5
	  	 	80	% 
	 6
	  	 	100	% 

  
 23 

 9.2 Computation of Vesting Years. For purposes of this Plan, a Vesting Year means
generally one year of Service, and including Service with other Employers as provided in the definition of “Service.” Notwithstanding the above, an Eligible Employee who was employed with the Bank shall receive credit for vesting purposes
beginning with the with the Employee’s initial Service with the Employer. However, a Participant’s Vesting Years shall be computed subject to the following conditions and qualifications: 

9.2-1 A Participant’s Vesting Years shall not include any Service prior to the date on which an Employee attains age 18.

 9.2-2 To the extent applicable, a Participant’s vested interest in his Account accumulated before five
(5) consecutive One Year Periods of Severance shall be determined without regard to any Service after such five consecutive Periods of Severance. Further, if a Participant has five (5) consecutive One Year Periods of Severance before his
interest in his Account has become vested to some extent, pre-One Year Period of Severance years of Service shall not be required to be taken into account for purposes of determining his post-One Year Period of Severance vested percentage. 

9.2-3 To the extent applicable, in the case of a Participant who has five (5) or more consecutive One Year Periods of
Severance, the Participant’s pre-One Year Period of Severance Service will count in vesting of the Employer-derived post-One Year Period of Severance Service accrued benefit only if either: 

(i) such Participant has any nonforfeitable interest in the accrued benefit attributable to Employer contributions at the time
of severance from employment, or 
 (ii) upon returning to Service the number of consecutive One Year Periods of Severance
Service is less than the number of years of Service. 
 9.2-4 Notwithstanding any provision of the Plan to the contrary,
calculation of service for determining Vesting Years with respect to qualified military service will be provided in accordance with Section 414(u) of the Code. 

9.2-5 To the extent applicable, if any amendment changes the vesting schedule, including an automatic change to or from a
top-heavy vesting schedule, any Participant with three (3) or more Vesting Years may, by filing a written request with the Employer, elect to have his vested percentage computed under the vesting schedule in effect prior to the amendment. The
election period must begin not later than the later of sixty (60) days after the amendment is adopted, the amendment becomes effective, or the Participant is issued written notice of the amendment by the Employer or the Committee. 

9.3 Full Vesting Upon Certain Events. 

9.3-1 Notwithstanding Section 9.1 of the Plan, a Participant’s interest in his Account shall fully vest on the
Participant’s Normal Retirement Date. The Participant’s interest shall also fully vest in the event that his Service is terminated by Disability or by death. For purposes of this Section 9.3-1, benefits payable in the event of a
Participant’s death or Disability while performing qualified military service shall fully vest in accordance with Section 414(u)(9) of the Code. 

  
 24 

 9.3-2 The Participant’s interest in his Account shall also fully vest in the
event of a “Change in Control” of the Bank, or the Company. For these purposes “Change in Control” means a change in control of a nature that: (i) would be required to be reported in response to Item 5.01 of the current
report on Form 8-K, as in effect on the date hereof, pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”); or (ii) results in a Change in Control of the Bank or the Company within the
meaning of the Bank Holding Company Act of 1956, as amended (“BHCA”); or (iii) without limitation such a Change in Control shall be deemed to have occurred at such time as (a) any “person” (as the term is used in
Sections 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 25% or more of the combined voting
power of the Company’s outstanding securities, except for any securities purchased by the Bank’s employee stock ownership plan or trust; or (b) individuals who constitute the Board of the Directors on the date hereof (the
“Incumbent Board”) cease for any reason to constitute at least a majority thereof, provided that any person becoming a director subsequent to the date hereof whose election was approved by a vote of at least three-quarters of the
directors comprising the Incumbent Board, or whose nomination for election by the Company’s stockholders was approved by the same Nominating Committee serving under an Incumbent Board, shall be, for purposes of this clause (b), considered
as though he were a member of the Incumbent Board; or (c) a plan of reorganization, merger, consolidation, sale of all or substantially all the assets of the Bank or the Company or similar transaction in which the Bank or Company is not the
surviving institution occurs or is effected; or (d) a proxy statement soliciting proxies from stockholders of the Company is distributed, by someone other than the current management of the Company, seeking stockholder approval of a plan of
reorganization, merger or consolidation of the Company or similar transaction with one or more business organizations as a result of which the outstanding shares of the class of securities then subject to the plan are to be exchanged for or
converted into cash or property or securities not issued by the Company; or (e) a tender offer is made for 25% or more of the voting securities of the Company and the shareholders owning beneficially or of record 25% or more of the outstanding
securities of the Company have tendered or offered to sell their shares pursuant to such tender offer and such tendered shares have been accepted by the tender offeror. 

9.4 Full Vesting Upon Plan Termination. Notwithstanding Section 9.1 of the Plan, a Participant’s interest in his
Account shall fully vest upon termination of this Plan or upon the permanent and complete discontinuance of contributions by his Employer. In the event of a partial termination, the interest of each affected Participant shall fully vest with respect
to that part of the Plan which is terminated. A partial termination of the Plan shall be determined by the Internal Revenue Service Commissioner based on the facts and circumstances of the particular case in accordance with Code
Section 411(d)(3) and the corresponding Treasury Regulations issued thereunder. 
 9.5 Forfeiture, Repayment, and
Restoral. If a Participant’s Service terminates before his interest in his Account is fully vested, that portion which has not vested shall be forfeited after a One Year Period of Severance. If a Participant’s Service terminates
prior to having any portion of his Account become vested, such Participant shall be deemed to have received a distribution of his vested interest immediately upon his termination of Service. 

  
 25 

 If a Participant who has suffered a forfeiture of the nonvested portion of his Account returns to
Service before he has five (5) consecutive One Year Periods of Severance, the nonvested portion shall be restored, provided that, if the Participant had received a distribution of his vested Account balance, the amount distributed shall be
repaid prior to such restoral. The Participant may repay such amount at any time within five years after he has returned to Service. The amount repaid shall be credited to his Account at the time it is repaid; an additional amount equal to that
portion of his Account which was previously forfeited shall be restored to his Account at the same time from other Employees’ forfeitures and, if such forfeitures are insufficient, then from amounts allocated in accordance with
Section 8.1-1(ii) of the Plan, and if insufficient, then from a special contribution by his Employer for that year. A Participant who was deemed to have received a distribution of his vested interest in the Plan shall have his Account restored
as of the first day on which he performs an Hour of Service after his return. 
 In addition, if a Participant did not receive a
distribution of his vested Account balance but his non-vested Account balance was forfeited after a One Year Period of Severance, such nonvested Account balance shall be restored if the Plan terminates before the Participant has a five-year One Year
Period of Service. If the Participant did not receive a distribution of his vested Account balance, any forfeiture restored shall include earnings that would have been credited to the Account but for the forfeiture. 

For purposes of this Section and Section 5.1 of the Plan, if a portion of a Participant’s Account is forfeited, Stock allocated from
an Exempt Loan will be forfeited only after other assets. If interests in more than one class of Stock have been allocated to a Participant’s Account, the Participant must be treated as forfeiting the same proportion of each such class. 

9.6 Accounting for Forfeitures. If a portion of a Participant’s Account is forfeited, Stock allocated to said
Participant’s Account shall be forfeited only after other assets are forfeited. If interests in more than one class of Stock have been allocated to a Participant’s Account, the Participant must be treated as forfeiting the same proportion
of each class of Stock. A forfeiture shall be charged to the Participant’s Account as of the first day of the first Valuation Period in which the forfeiture becomes certain pursuant to Section 9.5 of the Plan. Except as otherwise provided
in that Section, a forfeiture shall be added to the contributions of the terminated Participant’s Employer which are to be credited to other Participants pursuant to Section 4.1 of the Plan as of the last day of the Plan Year in which the
forfeiture becomes certain. 
 9.7 Vesting and Nonforfeitability. A Participant’s interest in his Account which has
become vested shall be nonforfeitable for any reason. 
 Section 10. Payment of Benefits. 

10.1 Benefits for Participants. For a Participant whose Service ends for any reason, distribution will be made to or for the
benefit of the Participant or, in the case of the Participant’s death, his Beneficiary, by payment in a lump sum, in accordance with Section 10.2 of the Plan. 

  
 26 

 
Prior to any such distribution, any Participant entitled to a distribution will receive a form upon which the Participant can elect the manner of such distribution (e.g., whether to receive the
distribution directly or transfer such distribution to an individual retirement account or other tax-qualified plan), a special tax notice regarding the consequences of such distribution, and, if applicable, that the Participant has the right not to
consent to a distribution at such time. 
 If a Participant so desires, he may direct how his benefits are to be paid to his Beneficiary.
Notice to the Participant with regard to having the right to elect the manner in which his vested Account balance will be distributed to him may be given up to 180 days before the first day of the first period for which an amount is payable. If a
deceased Participant did not file a direction with the Committee, the Participant’s benefits shall be distributed to his Beneficiary in a lump sum. Notwithstanding any provision to the contrary, if the value of a Participant’s vested
Account balance at the time of any distribution does not exceed $1,000, then such Participant’s vested Account shall be distributed, without regard to whether the Participant consents, in a lump sum within 60 days after the end of the Plan Year
in which employment terminates. If the value of a Participant’s vested Account balance is in excess of $5,000, then his benefits shall not be paid prior to his Normal Retirement Date unless he elects an early payment date in a written election
filed with the Committee. A Participant may modify such an election at any time, provided any new benefit payment date is at least 30 days after a modified election is delivered to the Committee. The Committee shall provide the Participant with
written notice designed to comply with the requirements of Code Section 411(a)(11), and shall provide the Participant with a general description of the material features of the optional forms of benefits under the Plan and the right to defer
receipt of any distribution under the Plan. Such notice shall be provided no less than 30 days and no more than 180 days before the date a distribution under the Plan commences. Notwithstanding the foregoing, failure of a Participant to consent to a
distribution prior his Normal Retirement Date shall be deemed to be an election to defer commencement of payment of any benefit under this section. Notwithstanding the foregoing, unless a Participant elects to receive a distribution, the Committee
shall transfer accounts of $1,000 or more, but not exceeding $5,000, in a direct rollover to an individual retirement plan designated by the Committee in accordance with Code Section 401(a)(31)(B) and the regulations promulgated thereunder. All
distributions of $5,000 or less that are made pursuant to this Section without the Participant’s consent shall be made in cash. 

Notwithstanding anything to the contrary, in the event the Participant dies while performing qualified military service (as defined
Section 414(u) of the Code), the Participant’s Beneficiary shall be entitled to any additional benefit provided under the Plan had the Participant resumed and then severed from employment on account of death. 

10.2 Time for Distribution. 

10.2-1 If the Participant and, if applicable, with the consent of the Participant’s spouse, elects the distribution of the
Participant’s Account balance in the Plan, distribution shall commence as soon as practicable following his termination of Service, but no later than one year after the close of the Plan Year in which the Participant severs employment by reason
of attainment of Normal Retirement Age under the Plan, Disability, or death, or which is the fifth Plan Year following the Plan Year in which the Participant otherwise severs employment, except that this clause shall not apply if the Participant is
reemployed by the Employer before distribution is required to begin. 

  
 27 

 10.2-2 Unless the Participant elects otherwise, the distribution of the balance
of a Participant’s Account shall commence not later than the 60th day after the latest of the close of the Plan Year in which - 

(i) the Participant attains the age of 65; 

(ii) occurs the tenth anniversary of the year in which the Participant commenced participation in the Plan; or 

(iii) the Participant terminates his Service with the Employer. 

10.2-3 Notwithstanding anything to the contrary, (1) with respect to a 5-percent owner (as defined in Code
Section 416), distribution of a Participant’s Account shall commence (whether or not he remains in the employ of the Employer) not later than the April 1 of the calendar year next following the calendar year in which the Participant
attains age 70 1⁄2, and (2) with respect to all other Participants, payment of a Participant’s benefit will commence not later than April 1 of
the calendar year following the calendar year in which the Participant attains age 70 1⁄2, or, if later, the year in which the Participant retires. A
Participant’s benefit from that portion of his Account committed to the Investment Fund shall be calculated on the basis of the most recent Valuation Date before the date of payment. 

10.2-4 Distribution of a Participant’s Account balance after his death shall comply with the following requirements: 

(i) If a Participant dies before his distributions have commenced, distribution of his Account to his Beneficiary shall
commence not later than one year after the end of the Plan Year in which the Participant died; however, if the Participant’s Beneficiary is his surviving Spouse, distributions may commence on the date on which the Participant would have
attained age 70 1⁄2. In either case, distributions shall be completed within five years after they commence. 

(ii) If the Participant dies after distribution has commenced pursuant to Section 10.1 of the Plan but before his entire
interest in the Plan has been distributed to him, then the remaining portion of that interest shall, in accordance with Section 401(a)(9) of the Code, be distributed at least as rapidly as under the method of distribution being used under
Section 10.1 of the Plan at the date of his death. 
 (iii) If a married Participant dies before his benefit payments
begin, then the Committee shall cause the balance in his Account to be paid to his Beneficiary, provided, however, that no election by a married Participant of a different Beneficiary than his surviving Spouse shall be valid unless the election is
accompanied by the Spouse’s written consent, which (A) must acknowledge the effect of the election, (B) must explicitly provide either that the designated 

  
 28 

 
Beneficiary may not subsequently be changed by the Participant without the Spouse’s further consent, or that it may be changed without such consent, and (C) must be witnessed by the
Committee, its representative, or a notary public. This requirement shall not apply if the Participant establishes to the Committee’s satisfaction that the Spouse may not be located. 

10.2-5 If a Participant or any other distributee’s distribution is rolled over to another eligible retirement plan
following the Participant’s required beginning date (as determined in accordance with Section 10.2-3 of the Plan), only the amount that exceeds the required minimum distribution amount for the Plan Year (as determined in accordance with
Code Section 401(a)(9)) in which the rollover is completed is treated as an eligible rollover distribution for purposes of Section 10.9 of the Plan. 

10.2-6 All distributions under this section shall be determined and made in accordance with Code Section 401(a)(9) and
final Treasury Regulations Sections 1.401(a)(9)-1 through 1.401(a)(9)-9, including the minimum distribution incidental benefit requirements of Code Section 401(a)(9)(G). These provisions override any distribution options in the Plan
inconsistent with Code Section 401(a)(9). 
 10.3 Marital Status. The Committee, the Plan, the Trustee, and the Employers
shall be fully protected and discharged from any liability to the extent of any benefit payments made as a result of the Committee’s good faith and reasonable reliance upon information obtained from a Participant and his Employer as to his
marital status. 
 10.4 Delay in Benefit Determination. If the Committee is unable to determine the benefits payable to a
Participant or Beneficiary on or before the latest date prescribed for payment pursuant to Section 10.1 or 10.2 of the Plan, the benefits shall in any event be paid within 60 days after they can first be determined, with whatever makeup
payments may be appropriate in view of the delay. 
 10.5 Accounting for Benefit Payments. Any benefit payment shall be
charged to the Participant’s Account as of the first day of the Valuation Period in which the payment is made. 
 10.6 Options to
Receive Stock. Unless ownership of virtually all Stock is restricted to active Employees and qualified retirement plans for the benefit of Employees pursuant to the certificates of incorporation or
by-laws of the Employers issuing Stock, a terminated Participant or the Beneficiary of a deceased Participant may instruct the Committee to distribute the Participant’s entire vested interest in his
Account in the form of Stock. In that event, the Committee shall apply the Participant’s vested interest in the Investment Fund to purchase sufficient Stock from the Stock Fund or from any owner of Stock to make the required distribution. In
all other cases, other than as specifically set forth in Section 10.1 of the Plan, the Participant’s vested interest in the Stock Fund shall be distributed in shares of Stock, and his vested interest in the Investment Fund shall be
distributed in cash. If Stock acquired with the proceeds of an Exempt Loan available for distribution consist of more than one class of Stock, the Participant (or Beneficiary, if applicable) must receive substantially the same proportion of each
such class. 

  
 29 

 Any Participant who receives Stock pursuant to Section 10.1 of the Plan, and any person who
has received Stock from the Plan or from such a Participant by reason of the Participant’s death or incompetence, by reason of divorce or separation from the Participant, or by reason of a rollover contribution described in
Section 402(a)(5) of the Code, shall have the right to require the Employer which issued the Stock to purchase the Stock for its current fair market value (hereinafter referred to as the “put right”). The put right shall be
exercisable by written notice to the Committee during the first 60 days after the Stock is distributed by the Plan, and, if not exercised in that period, during the first 60 days in the following Plan Year after the Committee has communicated to the
Participant its determination as to the Stock’s current fair market value. However, the put right shall not apply to the extent that the Stock, at the time the put right would otherwise be exercisable, may be sold on an established market in
accordance with federal and state securities laws and regulations. Similarly, the put option shall not apply with respect to the portion of a Participant’s Account which the Employee elected to have reinvested under Code
Section 401(a)(28)(B). If the put right is exercised, the Trustee may, if so directed by the Committee in its sole discretion, assume the Employer’s rights and obligations with respect to purchasing the Stock. Notwithstanding anything
herein to the contrary, in the case of a plan established by a bank (as defined in Code Section 581), the put option shall not apply if prohibited by a federal or state law and Participants are entitled to elect their benefits be distributed in
cash. 
 The Employer or the Trustee, as the case may be, may elect to pay for the Stock in equal periodic installments, not less frequently
than annually, over a period beginning not later than 30 days after the exercise of the put right and not exceeding five years, with adequate security and interest at a reasonable rate on the unpaid balance, all such terms to be set forth in a
promissory note delivered to the seller with normal terms as to acceleration upon any uncured default. 
 Nothing contained herein shall be
deemed to obligate any Employer to register any Stock under any federal or state securities law or to create or maintain a public market to facilitate the transfer or disposition of any Stock. The put right described herein may only be exercised by
a person described in the second preceding paragraph, and may not be transferred with any Stock to any other person. As to all Stock purchased by the Plan in exchange for any Exempt Loan, the put right shall be nonterminable. The put right for Stock
acquired through an Exempt Loan shall continue with respect to such Stock after the Exempt Loan is repaid or the Plan ceases to be an employee stock ownership plan. Notwithstanding anything in the Plan to the contrary, if securities acquired with
the proceeds of an Exempt Loan available for distribution consist of more than one class, a distributee must receive substantially the same proportion of each such class, in accordance with Treasury Regulations Section 54.4975-11(f)(2). 

10.7 Restrictions on Disposition of Stock. Except in the case of Stock which is traded on an established market, a Participant
who receives Stock pursuant to Section 10.1 of the Plan, and any person who has received Stock from the Plan or from such a Participant by reason of the Participant’s death or incompetence, by reason of divorce or separation from the
Participant, or by reason of a rollover contribution described in Section 402(a)(5) of the Code, shall, prior to any sale or other transfer of the Stock to any other person, first offer the Stock to the issuing Employer and to the Plan at the
greater of (i) its current fair market value, or (ii) the purchase price offered in good faith by an independent third party purchaser. This restriction shall apply to any transfer, whether voluntary, involuntary, or by operation of law,
and whether 

  
 30 

 
for consideration or gratuitous. Either the Employer or the Trustee may accept the offer within 14 days after it is delivered. Any Stock distributed by the Plan shall bear a conspicuous legend
describing the right of first refusal under this Section 10.7, as well as any other restrictions upon the transfer of the Stock imposed by federal and state securities laws and regulations. 

10.8 Continuing Loan Provisions; Creations of Protections and Rights. Except as otherwise provided in Sections 10.6 and 10.7 of
the Plan and this Section, no shares of Employer Stock held or distributed by the Trustee may be subject to a put, call or other option, or buy-sell arrangement. The provisions of this Section shall continue to be applicable to such Stock even if
the Plan ceases to be an employee stock ownership plan under Section 4975(e)(7) of the Code. 
 10.9 Direct Rollover of Eligible
Distribution. A Participant or distributee may elect, at the time and in the manner prescribed by the Trustee or the Committee, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified
by the Participant or distributee in a direct rollover. 
 10.9-1 An “eligible rollover” is any distribution that
does not include: any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the
Participant and the Participant’s Beneficiary, or for a specified period of ten years or more; any distribution to the extent such distribution is required under Code Section 401(a)(9); any hardship distribution described in
Section 401(k)(2)(B)(i)(IV) of the Code; and the portion of any distribution that is not included in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities). Notwithstanding
the foregoing, an “eligible rollover” shall include a distribution that is made to a “distributee” as defined under Section 10.9-4 of the Plan. 

10.9-2 An “eligible retirement plan” is an individual retirement account described in Code Section 408(a), an
individual retirement annuity described in Code Section 408(b), a deemed individual retirement account described in Code Section 408(q), an annuity plan described in Code Section 403(a), a Roth individual retirement account in
accordance with Code Section 408A(e), or a qualified trust described in Code Section 401(a), that accepts the distributee’s eligible rollover distribution. An eligible retirement plan shall also include an annuity contract described
in Section 403(b) of the Code and an eligible plan under Section 457(b) of the Code which is maintained by a state, or any agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for
amounts transferred into such plan from this Plan. 
 10.9-3 A “direct rollover” is a payment by the Plan to the
eligible retirement plan specified by the distributee. 
 10.9-4 The term “distributee” shall refer to a deceased
Participant’s Spouse or a Participant’s former Spouse who is the alternate payee under a qualified domestic relations order, as defined in Code Section 414(p), and shall include non-Spouse Beneficiaries pursuant to Code
Section 402(c)(11). 

  
 31 

 10.9-5 The Committee shall provide Participants or other distributes of eligible
rollover distributions with a written notice designed to comply with the requirements of Code Section 402(f). Such notice shall be provided within a reasonable period of time before making an eligible rollover distribution. Such notice may be
provided up to 180 days before the first day of the first period for which an amount is payable. 
 10.10 Waiver of 30-Day Period
After Notice of Distribution. If a distribution is one to which Sections 402(f) and 411(a)(11) of the Code apply, such distribution may commence less than 30 days after the notice required under Section 1.402(f)-1 or 1.411(a)-11(c) of
the Treasury Regulations is given, provided that: 
 (i) the Trustee or Committee, as applicable, clearly informs the
Participant that the Participant has a right to a period of at least 30 days after receiving the notice to consider the decision of whether or not to elect to make a tax-free rollover or receive a taxable distribution (and, if applicable, a
particular form of distribution), and 
 (ii) the Participant, after receiving the notice, affirmatively elects to make a
tax-free rollover or receive a taxable distribution. 
 Section 11. Rules Governing Benefit Claims and Review of Appeals. 

11.1 Claim for Benefits. Any Participant or Beneficiary who qualifies for the payment of benefits shall file a claim for his
benefits with the Committee on a form provided by the Committee. The claim, including any election of an alternative benefit form, shall be filed at least 30 days before the date on which the benefits are to begin. If a Participant or Beneficiary
fails to file a claim by the day before the date on which benefits become payable, he shall be presumed to have filed a claim for payment for the Participant’s benefits in the standard form prescribed by Sections 10.1 or 10.2 of the Plan. 

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

(i) each specific reason for the denial; 

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

(iii) a description of any additional material or information which could be submitted by the Participant or Beneficiary to
support his claim, with an explanation of the relevance of such information; and 
 (iv) an explanation of the claims review
procedures set forth in Section 11.3 of the Plan. 

  
 32 

 11.3 Claims Review Procedure. Within 60 days after a Participant or Beneficiary
receives notice from the Committee that his claim for benefits has been denied in any respect, he may file with the Committee a written notice of appeal setting forth his reasons for disputing the Committee’s determination. In connection
with his appeal the Participant or Beneficiary or his representative may inspect or purchase copies of pertinent documents and records to the extent not inconsistent with other Participants’ and Beneficiaries’ rights of privacy. Within 60
days after receiving a notice of appeal from a prior determination (or within 120 days, if special circumstances require an extension of time and written notice of the extension is given to the Participant or Beneficiary and his representative
within 60 days after receiving the notice of appeal), the Committee shall furnish to the Participant or Beneficiary and his representative, if any, a written statement of the Committee’s final decision with respect to his claim, including the
reasons for such decision and the particular Plan provisions upon which it is based. 
 Section 12. The Committee and its Functions.

 12.1 Authority of Committee. The Committee shall be the “plan administrator” within the meaning of ERISA and
shall have exclusive responsibility and authority to control and manage the operation and administration of the Plan, including the interpretation and application of its provisions, except to the extent such responsibility and authority are
otherwise specifically (i) allocated to the Bank, the Employers, or the Trustee under the Plan and Trust Agreement, (ii) delegated in writing to other persons by the Bank, the Employers, the Committee, or the Trustee, or
(iii) allocated to other parties by operation of law. The Committee shall have exclusive responsibility regarding decisions concerning the payment of benefits under the Plan. The Committee shall have no investment responsibility with respect to
the Investment Fund except to the extent, if any, specifically provided in the Trust Agreement. In the discharge of its duties, the Committee may employ accountants, actuaries, legal counsel, and other agents (who also may be employed by an Employer
or the Trustee in the same or some other capacity) and may pay their reasonable expenses and compensation. 
 12.2 Identity of
Committee. The Committee shall consist of two or more individuals selected by the Bank. Any individual, including a director, trustee, shareholder, officer, or Employee of an Employer, shall be eligible to serve as a member of the Committee.
The Bank shall have the power to remove any individual serving on the Committee at any time without cause upon 10 days written notice, and any individual may resign from the Committee at any time upon 10 days written notice to the Bank. The Bank
shall notify the Trustee of any change in membership of the Committee. 
 12.3 Duties of Committee. The Committee shall keep
whatever records may be necessary to implement the Plan and shall furnish whatever reports may be required from time to time by the Bank. The Committee shall furnish to the Trustee whatever information may be necessary to properly administer the
Trust. The Committee shall see to the filing with the appropriate government agencies of all reports and returns required of the Plan under ERISA and other laws. 

Further, the Committee shall have exclusive responsibility and authority with respect to the Plan’s holdings of Stock and shall direct
the Trustee in all respects regarding the purchase, retention, sale, exchange, and pledge of Stock and the creation and satisfaction of Exempt Loans. 

  
 33 

 
The Committee shall at all times act consistently with the Bank’s long-term intention that the Plan, as an employee stock ownership plan, be invested
primarily in Stock. In determining the proper extent of the Trust’s investment in Stock, the Committee shall be authorized to employ investment counsel, legal counsel, appraisers, and other agents and to pay their reasonable expenses and
compensation. 
 12.4 Valuation of Stock. If the valuation of any Stock is not readily tradable on an established securities
market, the valuation of such Stock shall be determined by an independent appraiser. For purposes of the preceding sentence, the term “independent appraiser” means any appraiser meeting requirements similar to the requirements of the
regulations prescribed under Section 170(a)(1) of the Code. The Valuation Date for all Plan transactions, including transactions between the Plan and a disqualified person, shall be the date of the transaction, in accordance with Treasury
Regulations Section 54.4975-11(d)(5). 
 12.5 Compliance with ERISA. The Committee shall perform all acts necessary to
comply with ERISA. Each individual member or employee of the Committee shall discharge his duties in good faith and in accordance with the applicable requirements of ERISA. 

12.6 Action by Committee. All actions of the Committee shall be governed by the affirmative vote of a number of members which is
a majority of the total number of members currently appointed, including vacancies. 
 12.7 Execution of Documents. Any
instrument executed by the Committee shall be signed by any member or employee of the Committee. 
 12.8 Adoption of Rules.
The Committee shall adopt such rules and regulations of uniform applicability as it deems necessary or appropriate for the proper administration and interpretation of the Plan. 

12.9 Responsibilities to Participants. The Committee shall determine which Employees qualify to enter the Plan. The Committee
shall furnish to each Eligible Employee whatever summary plan descriptions, summary annual reports, and other notices and information may be required under ERISA. The Committee also shall determine when a Participant or his Beneficiary qualifies for
the payment of benefits under the Plan. The Committee shall furnish to each such Participant or Beneficiary whatever information is required under ERISA (or is otherwise appropriate) to enable the Participant or Beneficiary to make whatever
elections may be available pursuant to Sections 6 and 10 of the Plan, and the Committee shall provide for the payment of benefits in the proper form and amount from the assets of the Trust Fund. The Committee may decide in its sole discretion to
permit modifications of elections and to defer or accelerate benefits to the extent such decision is consistent with applicable law and made in a non-discriminatory manner and in the best interests of all Participants and Beneficiaries. 

12.10 Alternative Payees in Event of Incapacity. If the Committee finds at any time that an individual qualifying for benefits
under this Plan is a minor or is incompetent, the Committee may direct the benefits to be paid, in the case of a minor, to his parents, his legal guardian, or a custodian for him under the Uniform Gifts to Minors Act, or, in the case of an
incompetent, to his spouse, or his legal guardian, the payments to be used for the individual’s 

  
 34 

 
benefit. The Committee and the Trustee shall not be obligated to inquire as to the actual use of the funds by the person receiving them under this Section 12.10, and any such payment shall
completely discharge the obligations of the Plan, the Trustee, the Committee, and the Employers to the extent of the payment. 
 12.11
Indemnification by Employers. Except as separately agreed in writing, the Committee, and any member or employee of the Committee, shall be indemnified and held harmless by the Employer, jointly and severally, to the fullest extent
permitted by ERISA, and subject to and conditioned upon compliance with 12 C.F.R. Section 545.121, to the extent applicable, against any and all costs, damages, expenses, and liabilities reasonably incurred by or imposed upon it or him in
connection with any claim made against it or him or in which it or he may be involved by reason of its or his being, or having been, the Committee, or a member or employee of the Committee, to the extent such amounts are not paid by insurance. 

12.12 Nonparticipation by Interested Member. Any member of the Committee who also is a Participant in the Plan shall take no
part in any determination specifically relating to his own participation or benefits, unless his abstention would leave the Committee incapable of acting on the matter. 

Section 13. Adoption, Amendment, or Termination of the Plan. 

13.1 Adoption of Plan by Other Employers. With the consent of the Bank, any entity may become a participating Employer under the
Plan by (i) taking such action as shall be necessary to adopt the Plan, (ii) becoming a party to the Trust Agreement establishing the Trust Fund, and (iii) executing and delivering such instruments and taking such other action as may
be necessary or desirable to put the Plan into effect with respect to the entity’s Employees. 
 13.2 Plan Adoption Subject to
Qualification. Notwithstanding any other provision of the Plan, the adoption of the Plan and the execution of the Trust Agreement are conditioned upon their being determined initially by the Internal Revenue Service to meet the qualification
requirements of Section 401(a) of the Code, so that the Employers may deduct currently for federal income tax purposes their contributions to the Trust and so that the Participants may exclude the contributions from their gross income and
recognize income only when they receive benefits. In the event that this Plan is held by the Internal Revenue Service not to qualify initially under Section 401(a), the Plan may be amended retroactively to the earliest date permitted by U.S.
Treasury Regulations in order to secure qualification under Section 401(a). If this Plan is held by the Internal Revenue Service not to qualify initially under Section 401(a) either as originally adopted or as amended, each Employer’s
contributions to the Trust under this Plan (including any earnings thereon) shall be returned to it and this Plan shall be terminated. In the event that this Plan is amended after its initial qualification and the Plan as amended is held by the
Internal Revenue Service not to qualify under Section 401(a), the amendment may be modified retroactively to the earliest date permitted by U.S. Treasury Regulations in order to secure approval of the amendment under Section 401(a). In
addition, reversions of Employer contributions (including earnings or losses attributable thereto) are permitted within one year after the applicable determination date, if the reversion is due to a good faith mistake of fact. 

  
 35 

 13.3 Right to Amend or Terminate. The Bank intends to continue this Plan as a
permanent program. However, each participating Employer separately reserves the right to suspend, supersede, or terminate the Plan at any time and for any reason, as it applies to that Employer’s Employees, and the Bank reserves the right to
amend, suspend, supersede, merge, consolidate, or terminate the Plan at any time and for any reason, as it applies to the Employees of each Employer. No amendment, suspension, supersession, merger, consolidation, or termination of the Plan shall
(i) reduce any Participant’s or Beneficiary’s proportionate interest in the Trust Fund, (ii) reduce or restrict, either directly or indirectly, the benefit provided any Participant prior to the amendment, or (iii) divert any
portion of the Trust Fund to purposes other than the exclusive benefit of the Participants and their Beneficiaries prior to the satisfaction of all liabilities under the Plan. Moreover, there shall not be any transfer of assets to a successor plan
or merger or consolidation with another plan unless, in the event of the termination of the successor plan or the surviving plan immediately following such transfer, merger, or consolidation, each participant or beneficiary would be entitled to a
benefit equal to or greater than the benefit he would have been entitled to if the plan in which he was previously a participant or beneficiary had terminated immediately prior to such transfer, merger, or consolidation. Following a termination of
this Plan by the Bank, the Trustee shall continue to administer the Trust and pay benefits in accordance with the Plan as amended from time to time and the Committee’s instructions. 

Section 14. Miscellaneous Provisions. 

14.1 Plan Creates No Employment Rights. Nothing in this Plan shall be interpreted as giving any Employee the right to be retained
as an Employee by an Employer, or as limiting or affecting the rights of an Employer to control its Employees or to terminate the Service of any Employee at any time and for any reason, subject to any applicable employment or collective bargaining
agreements. 
 14.2 Nonassignability of Benefits. No assignment, pledge, or other anticipation of benefits from the Plan will
be permitted or recognized by the Employer, the Committee, or the Trustee. Moreover, benefits from the Plan shall not be subject to attachment, garnishment, or other legal process for debts or liabilities of any Participant or Beneficiary, to the
extent permitted by law. This prohibition on assignment or alienation shall apply to any judgment, decree, or order (including approval of a property settlement agreement) which relates to the provision of child support, alimony, or property rights
to a present or former spouse, child or other dependent of a Participant pursuant to a state domestic relations or community property law, unless the judgment, decree, or order is determined by the Committee to be a qualified domestic relations
order within the meaning of Section 414(p) of the Code, as more fully set forth in Section 14.12 hereof. 
 14.3 Limit of
Employer Liability. The liability of the Employer with respect to Participants under this Plan shall be limited to making contributions to the Trust from time to time, in accordance with Section 4 of the Plan. 

14.4 Treatment of Expenses. All expenses incurred by the Committee and the Trustee in connection with administering this Plan
and Trust Fund shall be paid by the Trustee from the Trust Fund to the extent the expenses have not been paid or assumed by the Employer 

  
 36 

 
or by the Trustee. The Committee may determine that, and shall inform the Trustee when, reasonable expenses may be charged directly to the Account or Accounts of a Participant or group of
Participants to whom or for whose benefit such expenses are allocable, subject to the guidelines set forth in Field Assistance Bulletin 2003-03, to the extent not superseded, or any successor directive issued by the Department of Labor. 

14.5 Number and Gender. Any use of the singular shall be interpreted to include the plural, and the plural the singular. Any use
of the masculine, feminine, or neuter shall be interpreted to include the masculine, feminine, or neuter, as the context shall require. 

14.6 Nondiversion of Assets. Except as provided in Sections 5.2 and 14.12 of the Plan, under no circumstances shall any
portion of the Trust Fund be diverted to or used for any purpose other than the exclusive benefit of the Participants and their Beneficiaries prior to the satisfaction of all liabilities under the Plan. 

14.7 Separability of Provisions. If any provision of this Plan is held to be invalid or unenforceable, the other provisions of
the Plan shall not be affected but shall be applied as if the invalid or unenforceable provision had not been included in the Plan. 
 14.8
Service of Process. The agent for the service of process upon the Plan shall be the president of the Bank, or such other person as may be designated from time to time by the Bank. 

14.9 Governing State Law. This Plan shall be interpreted in accordance with the laws of the State of Ohio to the extent those
laws are applicable under the provisions of ERISA. 
 14.10 Employer Contributions Conditioned on Deductibility. Employer
Contributions to the Plan are conditioned on deductibility under Code Section 404. In the event that the Internal Revenue Service shall determine that all or any portion of an Employer Contribution is not deductible under that Section, the
nondeductible portion shall be returned to the Employer within one year of the disallowance of the deduction. In addition, reversions of Employer contributions (including earnings or losses attributable thereto) are permitted within one year after
the applicable determination date, if the reversion is due to a good faith mistake of fact. The maximum amount that may be returned to the Employer in the case of a mistake of fact or the disallowance of a deduction is the excess of (1) the
amount contributed, over, as relevant, (2) (A) the amount that would have been contributed had no mistake of fact occurred, or (B) the amount that would have been contributed had the contribution been limited to the amount that is
deductible after any disallowance by the Internal Revenue Service. 
 14.11 Unclaimed Accounts. Neither the Employer nor the
Trustees shall be under any obligation to search for, or ascertain the whereabouts of, any Participant or Beneficiary. The Employer or the Trustees, by certified or registered mail addressed to his last known address of record with the Employer,
shall notify any Participant or Beneficiary that he is entitled to a distribution under this Plan, and the notice shall quote the provisions of this Section. If the Participant or Beneficiary fails to claim his benefits or make his whereabouts known
in writing to the Employer or the Trustees within seven (7) calendar years after the date of notification, the benefits of the Participant or Beneficiary under the Plan will be disposed of as follows: 

  
 37 

 (i) If the whereabouts of the Participant is unknown but the whereabouts of the
Participant’s Beneficiary is known to the Trustees, distribution will be made to the Beneficiary. 
 (ii) If the
whereabouts of the Participant and his Beneficiary are unknown to the Trustees, the Plan will forfeit the benefit, provided that the benefit is subject to a claim for reinstatement if the Participant or Beneficiary make a claim for the forfeited
benefit. 
 Any payment made pursuant to the power herein conferred upon the Trustees shall operate as a complete discharge of all
obligations of the Trustees, to the extent of the distributions so made. 
 14.12 Qualified Domestic Relations Order.
Section 14.2 of the Plan shall not apply to a “qualified domestic relations order” defined in Code Section 414(p), and such other domestic relations orders permitted to be so treated under the provisions of the Retirement Equity
Act of 1984. Further, to the extent provided under a “qualified domestic relations order,” a former Spouse of a Participant shall be treated as the Spouse or surviving Spouse for all purposes under the Plan. 

In the case of any domestic relations order received by the Plan: 

(i) The Employer or the Committee shall promptly notify the Participant and any other alternate payee of the receipt of such
order and the Plan’s procedures for determining the qualified status of domestic relations orders, and 
 (ii) Within a
reasonable period after receipt of such order, the Employer or the Committee shall determine whether such order is a qualified domestic relations order and notify the Participant and each alternate payee of such determination. The Employer or the
Committee shall establish reasonable procedures to determine the qualified status of domestic relations orders and to administer distributions under such qualified orders. 

During any period in which the issue of whether a domestic relations order is a qualified domestic relations order is being determined (by the
Employer or Committee, by a court of competent jurisdiction, or otherwise), the Employer or the Committee shall segregate in a separate account in the Plan or in an escrow account the amounts which would have been payable to the alternate payee
during such period if the order had been determined to be a qualified domestic relations order. If within eighteen (18) months the order (or modification thereof) is determined to be a qualified domestic relations order, the Employer or the
Committee shall pay the segregated amounts (plus any interest thereon) to the person or persons entitled thereto. If within eighteen (18) months it is determined that the order is not a qualified domestic relations order, or the issue as to
whether such order is a qualified domestic relations order is not resolved, then the Employer or the Committee shall pay the segregated amounts (plus any interest thereon) to the person or persons who would have been entitled to such amounts if
there had been no order. Any determination that an order is a qualified domestic relations order which is made after the close of the eighteen (18) month period shall be applied prospectively only. The term “alternate payee” means any
Spouse, former Spouse, child or other dependent of a Participant who is recognized by a domestic relations order as having a right to receive all, or a portion of, the benefit payable under a Plan with respect to such Participant. 

  
 38 

 14.13 Use of Electronic Media to Provide Notices and Make Participant Elections.
Pursuant to Treasury Regulations Section 1.401(a)-21, the Plan may elect to use electronic media to provide notices required to be provided to Participants under the Plan and will accept elections from Participants communicated to the Plan
using such electronic media. 
 14.14 Acquisition of Securities. Notwithstanding any other provision of the Plan to the
contrary, at no time shall the Plan be obligated to acquire securities from a particular security holder at an indefinite time determined upon the happening of an event such as the death of the security holder, pursuant to Treasury Regulations
Section 54.4975-11(a)(7)(i). 
 Section 15. Top-Heavy Provisions. 

15.1 Top-Heavy Plan. This Plan is top-heavy if any of the following conditions exist: 

(i) If the top-heavy ratio for this Plan exceeds sixty percent (60%) and this Plan is not part of any required aggregation
group or permissive aggregation group; 
 (ii) If this Plan is a part of a required aggregation group (but is not part of a
permissive aggregation group) and the aggregate top-heavy ratio for the group of Plans exceeds sixty percent (60%); or 

(iii) If this Plan is a part of a required aggregation group and part of a permissive aggregation group and the aggregate
top-heavy ratio for the permissive aggregation group exceeds sixty percent (60%). 
 15.2 Definitions. In making this
determination, the Committee shall use the following definitions and principles: 
 15.2-1 The “Determination
Date,” with respect to the first Plan Year of any plan, means the last day of that Plan Year, and with respect to each subsequent Plan Year, means the last day of the preceding Plan Year. If any other plan has a Determination Date which differs
from this Plan’s Determination Date, the top-heaviness of this Plan shall be determined on the basis of the other plan’s Determination Date falling within the same calendar years as this Plan’s
Determination Date. 
 15.2-2 A “Key Employee” means any employee or former employee (including any deceased
employee) who at any time during the plan year that includes the determination date was an officer of the employer having annual compensation greater than $160,000 (as adjusted under section 416(i)(1) of the Code), a 5-percent owner of the employer,
or a 1-percent owner of the employer having annual compensation of more than $150,000. For this purpose, annual compensation means compensation within the meaning of section 415(c)(3) of the Code. The determination of who is a key employee will be
made in accordance with section 416(i)(1) of the Code and the applicable regulations and other guidance of general applicability issued thereunder. 

  
 39 

 15.2-3 A “Non-key Employee”
means an Employee who at any time during the five years ending on the top-heavy Determination Date for the Plan Year has received compensation from an Employer and who has never been a Key Employee, and the
Beneficiary of any such Employee. 
 15.2-4 A “required aggregation group” includes (a) each qualified Plan of
the Employer in which at least one Key Employee participates in the Plan Year containing the Determination Date and (b) any other qualified Plan of the Employer which enables a Plan described in (a) to meet the requirements of Code
Sections 401(a)(4) or 410. For purposes of the preceding sentence, a qualified Plan of the Employer includes a terminated Plan maintained by the Employer within the period ending on the Determination Date. In the case of a required aggregation
group, each Plan in the group will be considered a top-heavy Plan if the required aggregation group is a top-heavy group. No Plan in the required aggregation group will be considered a top-heavy Plan if the required aggregation group is not a
top-heavy group. All Employers aggregated under Code Sections 414(b), (c) or (m) or (o) (but only after the Code Section 414(o) regulations become effective) are considered a single Employer. 

15.2-5 A “permissive aggregation group” includes the required aggregation group of Plans plus any other qualified
Plan(s) of the Employer that are not required to be aggregated but which, when considered as a group with the required aggregation group, satisfy the requirements of Code Sections 401(a)(4) and 410 and are comparable to the Plans in the required
aggregation group. No Plan in the permissive aggregation group will be considered a top-heavy Plan if the permissive aggregation group is not a top-heavy group. Only a Plan that is part of the required aggregation group will be considered a
top-heavy Plan if the permissive aggregation group is top-heavy. 
 15.3 Top-Heavy Rules of Application. For purposes of
determining the value of Account balances and the present value of accrued benefits the following provisions shall apply: 

15.3-1 The value of Account balances and the present value of accrued benefits will be determined as of the most recent
Valuation Date that falls within or ends with the twelve (12) month period ending on the Determination Date. 
 15.3-2
For purposes of testing whether this Plan is top-heavy, the present value of an individual’s accrued benefits and an individual’s Account balances is counted only once each year. 

15.3-3 The Account balances and accrued benefits of a Participant who is not presently a Key Employee but who was a Key
Employee in a Plan Year beginning on or after January 1, 1984 will be disregarded. 
 15.3-4 Employer contributions
attributable to a salary reduction or similar arrangement will be taken into account. Employer matching contributions also shall be taken into account for purposes of satisfying the minimum contribution requirements of Section 416(c)(2) of the
Code and the Plan. 

  
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 15.3-5 When aggregating Plans, the value of Account balances and accrued benefits
will be calculated with reference to the Determination Dates that fall within the same calendar year. 
 15.3-6 The present
values of accrued benefits and the amounts of account balances of an employee as of the determination date shall be increased by the distributions made with respect to the employee under the plan and any plan aggregated with the plan under
Section 416(g)(2) of the Code during the 1-year period ending on the determination date. The preceding sentence shall also apply to distributions under a terminated plan which, had it not been terminated, would have been aggregated with the
plan under Section 416(g)(2)(A)(i) of the Code. In the case of a distribution made for a reason other than severance from employment, death, or disability, this provision shall be applied by substituting “five (5) year period”
for “one (1) year period.” 
 15.3-7 Accrued benefits and Account balances of an individual shall not be taken
into account for purposes of determining the top-heavy ratios if the individual has performed no services for the Employer during the one (1) year period ending on the applicable Determination Date. Compensation for purposes of this
subparagraph shall not include any payments made to an individual by the Employer pursuant to a qualified or non-qualified deferred compensation plan. 

15.3-8 The present value of the accrued benefits or the amount of the Account balances of any Employee participating in this
Plan shall not include any rollover contributions or other transfers voluntarily initiated by the Employee except as described below. If this Plan transfers or rolls over funds to another Plan in a transaction voluntarily initiated by the Employee,
then this Plan shall count the distribution for purposes of determining Account balances or the present value of accrued benefits. A transfer incident to a merger or consolidation of two or more Plans of the Employer (including Plans of related
Employers treated as a single Employer under Code Section 414), or a transfer or rollover between Plans of the Employer, shall not be considered as voluntarily initiated by the Employee. 

15.4 Minimum Contributions. For any Top-Heavy Year, each Employer shall make a special contribution on behalf of each
Participant to the extent that the total allocations to his Account pursuant to Section 4 of the Plan is less than the lesser of: 

(i) three percent of his 415 Compensation for that year, or 

(ii) the highest ratio of such allocation to 415 Compensation received by any Key Employee for that year. For purposes of
the special contribution of this Section 15.2, a Key Employee’s 415 Compensation shall include amounts the Key Employee elected to defer under a qualified 401(k) arrangement. Such a special contribution shall be made on behalf of each
Participant who is employed by an Employer on the last day of the Plan Year, regardless of the number of his Hours of Service, and shall be allocated to his Account. 

  
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 If the Employer maintains a qualified plan in addition to this Plan and more than one such plan
is determined to be Top-Heavy, a minimum contribution or a minimum benefit shall be provided in this Plan rather than in such other plan or plans. 

15.5 Top-Heavy Provisions Control in Top-Heavy Plan. In the event this Plan becomes top-heavy and a conflict arises between the
top-heavy provisions herein set forth and the remaining provisions set forth in this Plan, the top-heavy provisions shall control. 

  
 42EXHIBIT 10.1

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement
(this “Agreement”) is entered into as of April 15, 2014, by and between Carolina Bank, a North Carolina-chartered
bank (the “Bank”), and John Richard Spiker II (the “Employee”).

 

Statement of Purpose

 

WHEREAS the Bank desires
to employ Employee as its Executive Vice President and Senior Loan Officer and Employee desires to accept such employment, on the
terms and conditions set forth in this Agreement;

 

WHEREAS Employee acknowledges
and agrees that through his association with the Bank as an employee, he will acquire a considerable amount of knowledge and goodwill
with respect to the business of the Bank, which knowledge and goodwill are highly valuable to the Bank and which would be detrimental
to the Bank if used by Employee to compete with the Bank;

 

WHEREAS the Bank wishes
to protect its investment in its business, employees, customer relationships, and confidential information, by requiring Employee
to abide by certain restrictive covenants regarding confidentiality and other matters, each of which is an inducement to the Bank
to employ Employee; and

 

WHEREAS the Bank and
Employee desire to enter into this Agreement also to provide Employee with security in the event of a change in control in the
Bank or its parent holding company, Carolina Bank Holdings, Inc. (“Holdings”), and to insure the continued loyalty
of Employee during any such change in control in order to maximize shareholder value as well as the continued safe and sound operation
of the Bank,

 

NOW, THEREFORE, in
consideration of the foregoing, the mutual agreements contained herein, and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.                 
Employment; Position and Duties. The Bank hereby agrees to employ Employee, and Employee hereby agrees to accept such
employment, upon the terms and conditions stated herein. As an officer of the Bank, Employee will (i) serve as Executive Vice President
and Senior Loan Officer of the Bank, and (ii) have such other duties and responsibilities as are customary for persons in Employee’s
position with the Bank or as shall otherwise be reasonably assigned to him from time to time by the Bank. Employee will faithfully
and diligently discharge his duties and responsibilities under this Agreement in compliance with the Bank’s policies and
procedures and applicable laws and regulations that apply to the Bank’s business. Employee agrees to devote his full business
time to discharge his duties hereunder, and, for so long as employment hereunder continues, Employee shall not engage in any other
occupation which requires a significant amount of Employee’s personal attention during the Bank’s regular business
hours or which otherwise interferes with Employee’s attention to or performance of his duties and responsibilities as an
officer of the Bank hereunder, except with the prior written consent of the Bank. However, nothing herein contained shall restrict
or prevent Employee from personally, and for Employee’s own account, trading in stocks, bonds, securities, real estate or
other forms of investment for Employee’s own benefit so long as said activities do not interfere with Employee’s attention
to or performance of his duties and responsibilities as an officer of the Bank hereunder.

 

    	 

    	 

    

 

2.                 
Compensation and Benefits. As compensation for the services to be rendered by Employee under this Agreement, the Bank
will provide the following compensation and benefits during Employee’s employment hereunder.

 

(a)              
Base Salary. The Bank will pay to Employee a base salary (the “Base Salary”) at an annual rate of
___________________ Dollars ($172,500) payable in equal installments in accordance with the Bank’s customary payroll practices
as in effect from time to time. The Base Salary will be reviewed by the Board of Directors of the Bank (the “Board”)
or a designated committee thereof no less than annually, and may be increased from time to time in the sole discretion of the Board.

 

(b)              
Annual Bonus. Employee will be eligible to receive an annual discretionary bonus based upon such criteria, and in such
amount, as the Board (or a designated committee thereof) may determine in its sole discretion. The Annual Bonus for any given year
will be payable between January 1 and March 15 in the year immediately following the year in which the Annual Bonus, if any, is
earned. Employee must be employed by the Bank on December 31 of the bonus year in order to receive the Annual Bonus for that year.

 

(c)               
General Benefits. Subject to the terms and conditions of this Agreement, Employee shall be entitled to participate in
any and all employee benefit programs and compensation plans from time to time maintained by the Bank and available to similarly-situated
employees of the Bank, all in accordance with the terms and conditions (including eligibility requirements) of such programs and
plans and the Bank’s normal practices and established policies regarding such programs and plans. Nothing in this Agreement
will be deemed to alter the Bank’s rights to modify or terminate any such plans or programs in its sole discretion.

 

(d)              
Vacation. Employee will be entitled to accrue paid vacation leave in accordance with the Bank’s vacation policy.

 

(e)               
Club Dues. The Bank will pay or cause to be paid Employee’s membership dues for membership in one (1) civic or
country club of Employee’s choice, provided that Employee will be responsible for all personal expenses for use of such club.

 

(f)               
Reimbursement of Expenses. The Bank shall reimburse Employee for all reasonable expenses incurred by him in the performance
of his duties under this Agreement and documented to the reasonable satisfaction of the Bank pursuant to established policies.

 

(g)              
Withholdings. The Bank will withhold from any amounts payable under this Agreement such federal, state and local taxes
as the Bank determines are required to be withheld pursuant to applicable law.

 

    	 

    	 

    

 

3.                 
Term. The initial term of this Agreement and Employee’s employment with the Bank hereunder shall be for a period
commencing on the date hereof and continuing for a period of three (3) years. Following the initial three-year period, this Agreement
will be renewed for successive one (1) year periods, unless either party provides at least thirty (30) days’ written notice
of non-renewal to the other party. Notwithstanding the above, either party may terminate this Agreement and Employee’s employment
by the Bank in accordance with Section 4 below.

 

4.                 
Termination. In addition to a non-renewal of the employment term as described in Section 3 above, this Agreement is
subject to termination as follows:

 

(a)              
Death. Automatically effective upon the Employee’s death.

 

(b)              
Disability. By the Bank effective upon written notice to the Employee in the event of the Employee’s Disability.
As used herein, “Disability” means the inability of Employee, due to the condition of his physical, mental or
emotional health, effectively to perform the essential functions of his job with or without reasonable accommodation for a continuous
period of more than 90 days or for 90 days in any period of 180 consecutive days, as determined by the Board in its sole discretion
in consultation with a physician retained by the Bank. For purposes of making a determination as to whether a Disability exists,
at the Bank’s request Employee agrees to make herself available and to cooperate in a reasonable examination by a reputable
independent physician retained by the Bank and to authorize the disclosure and release to the Bank of all medical records related
to such examination. In all cases, this provision will be interpreted and applied in an manner consistent with the Americans with
Disabilities Act, as amended, and other applicable law.

 

(c)               
By the Bank For Cause. By the Bank effective upon written notice to the Employee for Cause. For purposes of this Agreement,
“Cause” means:

 

(i)               
The commission in the course of Employee’s employment with the Bank of an act of fraud, embezzlement, theft or
proven personal dishonesty (whether or not resulting in criminal prosecution or conviction);

 

(ii)              
Employee’s material breach of fiduciary duties to the Bank;

 

(iii)            
 Employee’s willful or grossly negligent misconduct that has or may reasonably be expected to have a material adverse
effect on the Bank’s business or reputation;

 

(iv)            
  Employee’s material breach of this Agreement;

 

(v)              
Employee’s willful failure or refusal to perform his material duties under this Agreement or failure to follow
any specific lawful instructions of the Board or its designee(s);

 

(vi)            
Employee’s violation of any applicable federal or state law, or any applicable rule, regulation, order or statement
of policy promulgated by any governmental agency or authority having jurisdiction over the Bank or any of its affiliates or subsidiaries
(including without limitation the Federal Deposit Insurance Corporation, the North Carolina Commissioner of Banks, the Federal
Reserve Board or any other banking regulator having legal jurisdiction over the Bank), which results from Employee’s gross
negligence, willful misconduct or intentional disregard of such law, rule, regulation, order or policy statement and results in
any substantial damage, monetary or otherwise, to the Bank or any of its affiliates or subsidiaries or to the Bank’s reputation;

 

    	 

    	 

    

 

(vii)          
 Employee’s alcohol or substance abuse which has a material adverse effect on Employee’s ability to perform
his duties under this Agreement or the property, business, or reputation of the Bank;

 

(viii)        
 Employee’s engagement in a form of discrimination or harassment prohibited by law (including, without limitation,
discrimination or harassment based on race, color, religion, sex, national origin, age or disability);

 

(ix)            
Employee’s conviction or plea of nolo contendere in respect of a felony or of a misdemeanor involving moral turpitude;
or

 

(x)             
Conduct by the Employee that results in Employee (1) becoming unacceptable to any governmental or regulatory agency
having jurisdiction over the Bank (or any affiliate thereof), or (2) being removed, suspended, or prohibited from participating
in the conduct of the Bank’s affairs (or if proceedings for that purpose are commenced) by any such governmental or regulatory
agency.

 

In the event that the
Bank concludes that Employee has engaged in acts constituting in Cause as defined in clause (iii), (iv), (v), or (vii) above, prior
to terminating this Agreement for Cause the Bank will provide Employee with at least fifteen (15) days’ advance written notice
of the circumstances constituting such Cause, and an opportunity to correct such circumstances.

 

(d)              
By the Employee for Good Reason. Employee may terminate this Agreement for Good Reason as described herein. In order
for Employee to resign for Good Reason, Employee must provide written notice to the Bank of the existence of the Good Reason condition
within ninety (90) days of the initial existence of such Good Reason condition. Upon receipt of such notice, the Bank will have
thirty (30) days during which it may attempt to remedy the Good Reason condition and not be required to provide for the benefits
described in Sections 5(b) or 5(d) below as a result of such proposed resignation if successfully remedied. If the Good Reason
condition is not remedied within such thirty (30) day period, Employee may resign based on the Good Reason condition specified
in the notice effective no later than thirty (30) days following the expiration of the thirty (30) day cure period. For purposes
of this Agreement, “Good Reason” means the occurrence of any of the following events without Employee’s
consent:

 

(i)                
a material reduction of Employee’s Base Salary;

 

(ii)              
a material diminution of the Employee’s authority, duties, or responsibilities;

 

(iii)            
a material change in Employee’s primary workplace worksite to a place that is more than twenty-five (25) miles
removed from the principal office of the Bank; or

 

(iv)            
the Bank’s material breach of this Agreement.

 

    	 

    	 

    

 

(e)               
Without Cause. Either party may terminate this Agreement upon thirty (30) days’ written notice to the other.

 

(f)               
Notice Periods. During any notice period under Sections4(c), 4(d), or 4(e), the Bank may, in its sole discretion, relieve
Employee of some or all of his duties and pay all or part of the notice period rather than allowing Employee to work during the
notice period.

 

5.                 
Effect of Termination.

 

(a)              
Generally. When Employee’s employment with the Bank is terminated for any reason, Employee, or his estate, as
the case may be, will be entitled to receive the compensation and benefits earned through the effective date of termination, along
with reimbursement for any approved business expenses that Employee has timely submitted for reimbursement in accordance with the
Bank’s expense reimbursement policy or practice.

 

(b)              
Separation Benefits upon Certain Terminations. If the Bank terminates Employee’s employment without Cause, or
if Employee resigns his employment for Good Reason, then conditioned upon Employee executing a Release following such termination
as described in Section 5(f) below, (i) Employee will be entitled to receive a lump sum payment equal to two (2) times the Employee’s
annual Base Salary, and (ii) the Bank will reimburse to Employee his actual cost to continue the group health and/or dental insurance
coverage that Employee and his eligible dependents were receiving immediately prior to Employee’s termination pursuant and
subject to the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), until the earlier of (x) twelve (12) months from
Employee’s last day of employment, (y) the date on which Employee is eligible for comparable benefits from a subsequent employer,
or (z) the date on which Employee no longer is eligible for COBRA benefits. The lump sum amount payable pursuant to this Section
5(b) will be paid to the Employee within sixty (60) days following the date of the Employee’s termination of employment,
but in no event later than March 15 of the calendar year following the calendar year in which the Employee terminates employment.

 

(c)               
Separation Benefits Following a Termination as a Result of Disability. If the Bank terminates Employee’s employment
as a result of his Disability, then conditioned upon Employee executing a Release following such termination as described in Section
5(f) below, the Bank will reimburse to Employee his actual cost to continue the group health and/or dental insurance coverage that
Employee and his eligible dependents were receiving immediately prior to Employee’s termination pursuant and subject to the
Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), until the earlier of (x) twelve (12) months from Employee’s
last day of employment, (y) the date on which Employee is eligible for comparable benefits from a subsequent employer, or (z) the
date on which Employee no longer is eligible for COBRA benefits.

 

(d)              
Separation Benefits upon Certain Terminations Following a Change in Control. If, within twenty-four (24) months following
a Change in Control as defined below, the Bank terminates Employee’s employment without Cause, or if Employee resigns his
employment for Good Reason, then conditioned upon Employee executing a Release following such termination as described in Section
5(f) below, (i) Employee will be entitled to receive (i) a lump sum payment equal to 2.99 times Employee’s “base amount”
as defined in Section 280G(b)(3)(A) of the Internal Revenue Code, and (ii) the Bank will reimburse to Employee his actual cost
to continue the group health and/or dental insurance coverage that Employee and his eligible dependents were receiving immediately
prior to Employee’s termination pursuant and subject to the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA),
until the earlier of (x) twelve (12) months from Employee’s last day of employment, (y) the date on which Employee is eligible
for comparable benefits from a subsequent employer, or (z) the date on which Employee no longer is eligible for COBRA benefits.
The lump sum amount payable pursuant to this Section 5(d) will be paid to the Employee within sixty (60) days following the date
of the Employee’s termination of employment, but in no event later than March 15 of the calendar year following the calendar
year in which the Employee terminates employment. In no event will Employee be entitled to receive payment under both Section 5(b)
and 5(d) of this Agreement.

 

    	 

    	 

    

 

(e)               
Change in Control. For purposes of this Agreement, a “Change in Control” means: any event occurring
after the Effective Date that constitutes a change in control event as defined in Treasury Regulation § 1.409A-3(i)(5)
promulgated under Section 409A of the Code, including a change in effective control of the Bank or of Holdings, a change in the
ownership of the Bank or of Holdings, or a change in the ownership of a substantial portion of the assets of the Bank or of Holdings,
as such terms are defined in Treasury Regulation § 1.409A-3(i)(5). Notwithstanding the forgoing, a transaction or event
shall not be considered a Change in Control if prior to the consummation or occurrence of such transaction or event, Employee and
the Bank agree in writing that the same shall not be treated as a Change in Control for purposes of this Agreement.

 

(f)               
Release. The Bank’s promise to provide severance payments and COBRA insurance continuation as described in Sections
5(b), 5(c), and 5(d) above is, in each case, conditioned upon Employee executing a release of claims in a form acceptable to the
Bank (the “Release”) within the time specified therein, which Release is not revoked within any time period
allowed for revocation under applicable law.

 

(g)              
Application of Internal Revenue Code Section 409A. Notwithstanding anything to the contrary set forth herein, any payments
and benefits provided under this Section 5 that constitute “deferred compensation” within the meaning of Section 409A
of the Internal Revenue Code and the regulations and other guidance thereunder and any state law of similar effect (collectively
“Section 409A”) will not commence in connection with Employee’s termination of employment unless and until
Employee has also incurred a “separation from service” (as such term is defined in Treasury Regulation Section 1.409A-1(h)
(a “Separation From Service”), unless the Bank reasonably determines that such amounts may be provided to Employee
without causing Employee to incur the additional 20% tax under Section 409A. The parties intend that each installment of the payments
provided for in this Agreement is a separate “payment” for purposes of Treasury Regulation Section 1.409A-2(b)(2)(i).
For the avoidance of doubt, the parties intend that the benefits set forth in this Agreement satisfy, to the greatest extent possible,
the exemptions from the application of Section 409A provided under Treasury Regulation Sections 1.409A-1(b)(4), 1.409A-1(b)(5)
and 1.409A-1(b)(9). However, if the Bank determines that the separation benefits set forth above constitute “deferred compensation”
under Section 409A and Employee is, on the termination of service, a “specified employee” of the Bank or any successor
entity thereto, as such term is defined in Section 409A(a)(2)(B)(i) of the Internal Revenue Code, then, solely to the extent necessary
to avoid the incurrence of the adverse personal tax consequences under Section 409A, the timing of such payments will be delayed
until the earlier to occur of: (i) the date that is six months and one day after Employee’s Separation From Service, or (ii)
the date of Employee’s death (such applicable date, the “Specified Employee Initial Payment Date”), the
Bank (or the successor entity thereto, as applicable) will (A) pay to Employee a lump sum amount equal to the sum of the payments
that Employee would otherwise have received through the Specified Employee Initial Payment Date if the commencement of the payment
of the separation benefits set forth above had not been so delayed pursuant to this Section and (B) commence paying the balance
of the separation benefits set forth above in accordance with the applicable payment schedules set forth in this Agreement.

 

    	 

    	 

    

 

(h)              
Change in Control Taxes. Notwithstanding any other provision of this Agreement to the contrary, if the aggregate of
the payments provided for in this Agreement and the other payments and benefits which the Employee has the right to receive from
the Bank which are contingent upon a change in ownership or effective control of the Bank or in the ownership of a substantial
portion of the assets of the Bank (the “Total Payments”) would constitute a “parachute payment,”
as defined in Section 280G(b)(2) of the Internal Revenue Code, the Employee shall receive the Total Payments unless (a) the after-tax
amount that would be retained by the Employee (after taking into account all federal, state and local income taxes payable by the
Employee and the amount of any excise taxes payable by the Employee under Section 4999 of the Internal Revenue Code that would
be payable by the Employee (the “Excise Taxes”)) if the Employee were to receive the Total Payments has a lesser
aggregate value than (b) the after-tax amount that would be retained by the Employee (after taking into account all federal, state
and local income taxes payable by the Employee) if the Employee were to receive the Total Payments reduced to the largest amount
as would result in no portion of the Total Payments being subject to the Excise Taxes (the “Reduced Payments”),
in which case the Employee shall be entitled only to the Reduced Payments. If the Employee is to receive the Reduced Payments,
the portions of the payments that would be made latest in time will be reduced first, and if multiple portions of the payments
to be reduced are to be paid at the same time, the non-cash payments will be reduced pro rata before any cash payments, and the
cash payments will then be reduced pro rata.

 

(i)                
No Further Obligations. Except as expressly provided above or as otherwise required by law, the Bank will have no obligations
to Employee in the event of the termination of this Agreement for any reason.

 

6.                 
Representations of Employee.

 

(a)              
Authority. Employee represents and warrants that he is not obligated or restricted under any agreement (including any
non-competition or confidentiality agreement), judgment, decree, order or other restraint of any kind that could impair Employee’s
ability to perform the duties and obligations required of Employee hereunder. Employee further agrees that he will not divulge
to the Bank any confidential information and/or trade secrets belonging to others, including Employee’s former employers,
nor will the Bank seek to elicit from Employee such information. Consistent with the foregoing, Employee will not provide to the
Bank, and the Bank will not request, any documents or copies of documents containing such information.

 

    	 

    	 

    

 

(b)              
Conduct. Employee agrees to abide by the Bank’s generally applicable rules of conduct for its employees.

 

7.                 
Confidential Information.

 

(a)              
Employee hereby acknowledges that in the course of his service as an employee and officer of the Bank, Employee will
have access to certain highly-sensitive, confidential, and proprietary information belonging to the Bank or third parties who may
have furnished such information under obligations of confidentiality, relating to and used in the Bank’s Business (collectively,
“Confidential Information”). Employee acknowledges that, unless otherwise available to the public, Confidential
Information includes, but is not limited to, the following categories of Bank-related confidential or proprietary information and
material: financial statements and information; budgets, forecasts, and projections; business and strategic plans; marketing, sales,
and distribution strategies; research and development projects; records relating to any intellectual property developed by, owned
by, controlled, or maintained by the Bank; information related to the Bank’s inventions, research, products, designs, methods,
formulae, techniques, systems, processes; customer lists; non-public information relating to the Bank’s customers, suppliers,
distributors, or investors; the specific terms of the Bank’s agreements or arrangements, whether oral or written, with any
customer, supplier, vendor, or contractor with which the Bank may be associated from time to time; and any and all information
relating to the operation of the Bank’s business which the Bank may from time to time designate as confidential or proprietary
or that Employee reasonably knows should be, or has been, treated by the Bank as confidential or proprietary. Confidential Information
encompasses all formats in which information is preserved, whether electronic, print, or any other form, including all originals,
copies, notes, or other reproductions or replicas thereof.

 

(b)              
Any trade secrets of the Bank will be entitled to all of the protections and benefits under the North Carolina Trade
Secrets Protection Act, N.C. Gen. Stat. § 66-152 et seq., and any other applicable law. If any information that
the Bank deems to be a trade secret is found by a court of competent jurisdiction not to be a trade secret, such information will,
nevertheless, be considered Confidential Information for purposes of this Agreement.

 

(c)               
Confidential Information does not include any information that: (i) at the time of disclosure is generally known to,
or readily ascertainable by, the public; (ii) becomes known to the public through no fault of Employee or other violation of this
Agreement; or (iii) is disclosed to Employee by a third party under no obligation to maintain the confidentiality of the information.

 

(d)              
Employee acknowledges that the Confidential Information is owned or licensed by the Bank; is unique, valuable, proprietary
and confidential; and derives independent actual or potential commercial value from not being generally known or available to the
public. Employee hereby relinquishes, and agrees that he will not at any time claim, any right, title or interest of any kind in
or to any Confidential Information.

 

    	 

    	 

    

 

(e)               
During and after his employment with the Bank, Employee will hold in trust and confidence all Confidential Information,
and will not disclose any Confidential Information to any person or entity, except in the course of performing duties assigned
by the Bank or as authorized in writing by the Bank. Employee further agrees that during and after his employment with the Bank,
Employee will not use any Confidential Information for the benefit of any third party, except in the course of performing duties
assigned by the Bank or as authorized in writing by the Bank.

 

(f)               
The restriction in Section 7(e) above will not apply to any information that Employee is required to disclose by law,
provided that the Employee (i) notifies the Bank of the existence and terms of such obligation, (ii) gives the Bank a reasonable
opportunity to seek a protective or similar order to prevent or limit such disclosure, and (iii) only discloses that information
actually required to be disclosed.

 

(g)              
Return of Property. Upon request during employment and immediately at the termination of this Agreement, Employee will
return to the Bank all Confidential Information in any form (including all copies and reproductions thereof) and all other property
whatsoever of the Bank in his possession or under his control. If requested by the Bank, Employee will certify in writing that
all such materials have been returned to the Bank. Employee also expressly agrees that immediately upon the termination of his
employment with the Bank for any reason, Employee will cease using any secure website, web portals, e-mail system, or phone system
or voicemail service provided by the Bank for the use of its employees.

 

8.                 
Non-Competition and Non-Solicitation.

 

(a)              
Purpose. Employee and the Bank understand and agree that the purpose of this Section 8 is solely to protect the Bank’s
legitimate business interests, including, but not limited to its confidential and proprietary information, customer relationships
and goodwill, and the Bank’s competitive advantage, and is not intended to impair, nor will it impair, Employee’s ability
or right to work or earn a living. Therefore, Employee agrees to be subject to restrictive covenants under the following terms.

 

(b)              
Definitions. As used in this Agreement, the following terms have the meanings given to such terms below.

 

(i)                
“Business” means the business of banking, including the solicitation of time and demand deposits
and the making of residential, consumer, commercial and corporate loans.

 

(ii)              
“Customer” means any person or entity (A) with whom the Bank has or has had a depository, loan, or
other banking relationship at the time of, or during the twelve (12) month period prior to, the termination of Employee’s
employment with the Bank for any reason, and (B) with whom Employee had dealings on behalf of the Bank in the course of his employment
with the Bank.

 

(iii)            
“Prospective Customer” means any person or entity to whom, within the
twelve (12) months prior to the termination of Employee’s employment, the Bank had submitted proposals to for services of
which Employee has knowledge, whether or not such proposals have yet to be executed into contracts; provided that the Bank
has a legitimate expectation of doing business with such Prospective Client, and provided further that the Employee has had material
business contacts with such person or entity on behalf of the Bank, whether such contact was
initiated by the person or business or by Employee.

 

    	 

    	 

    

 

(iv)            
“Bank Employee” means any person who is or was an employee of the Bank at the time of, or during
the twelve (12) month period prior to, the termination of Employee’s employment with the Bank for any reason.

 

(v)              
“Restricted Period” means the period commencing on the date of termination of Employee’s employment
with the Bank for any reason and ending twelve (12) months after such date, provided, however, that this period will be tolled
and will not run during any time Employee is in violation of this Section 8, it being the intent of the parties that the Restricted
Period will be extended for any period of time in which Employee is in violation of this Section 8.

 

(vi)            
“Restricted Territory” means (A) Alamance County, North Carolina; (B) Forsyth County, North
Carolina; (C) Guilford County, North Carolina; (D) Randolph County, North Carolina; and (E) any other county in which the Employee
directed or performed employment-related activities on behalf of the Bank at the time of, or during the twelve (12) month period
prior to, the termination of Employee’s employment with the Bank for any reason.

 

(c)               
Non-Competition. During his employment with the Bank, Employee will not, on his own behalf or on behalf of any other
person, engage in any business competitive with or adverse to that of the Bank. In addition, during his employment with the Bank
and during the Restricted Period, Employee will not (i) engage in the Business in the Restricted Territory, or (ii) hold a position
based in or with responsibility for all or part of the Restricted Territory, with any person or entity engaging in the Business,
whether as employee, consultant, or otherwise, in which Employee will have duties, or will perform or be expected to perform services
for such person or entity, that is or are the same as or substantially similar to the position held by Employee or those duties
or services actually performed by Employee for the Bank within the twelve (12) month period immediately preceding the termination
of Employee’s employment with the Bank, or in which Employee will use or disclose or be reasonably expected to use or disclose
any confidential or proprietary information of the Bank for the purpose of providing, or attempting to provide, such person or
entity with a competitive advantage with respect to the Business.

 

(d)              
Non-Solicitation. During his employment with the Bank and during the Restricted Period, Employee will not, directly
or indirectly, on Employee’s own behalf or on behalf of any other party:

 

		(i)	Call upon, solicit, divert, encourage or attempt to call upon, solicit, divert, or encourage any
Customer or Prospective Customer for purposes of marketing, selling, or providing products or services to such Customer or Prospective
Customer that are similar to or competitive with those offered by the Bank;

 

    	 

    	 

    

 

		(ii)	Accept as a customer any Customer or Prospective Customer for purposes of marketing, selling, or
providing products or services to such Customer or Prospective Customer that are similar to or competitive with those offered by
the Bank;

 

		(iii)	Induce, encourage, or attempt to induce or encourage any Customer to reduce, limit, or cancel its
business with the Bank; or

 

		(iv)	Solicit, induce, or attempt to solicit or induce any Bank Employee to terminate his or her employment
with the Bank.

 

(e)               
Reasonableness of Restrictions. Employee acknowledges and agrees that (i) the restrictive covenants in this Agreement
are essential elements of Employee’s employment by the Bank and are reasonable given Employee’s access to the Bank’s
Confidential Information and the substantial knowledge and goodwill Employee will acquire with respect to the business of the Bank
as a result of his employment with the Bank, and the unique and extraordinary services to be provided by Employee to the Bank;
(ii) the restrictive covenants contained in this Agreement are reasonable in time, territory, and scope, and in all other respects;
and (iii) enforcement of the restrictions contained herein will not deprive the Employee of the ability to earn a reasonable living.
Should any part or provision of this Section 8 be held invalid, void, or unenforceable in any court of competent jurisdiction,
such invalidity, voidness, or unenforceability will not render invalid, void, or unenforceable any other part or provision of this
Agreement. The parties further agree that if any portion of this Section 8 is found to be invalid or unenforceable by a court of
competent jurisdiction because its duration, territory, or other restrictions are deemed to be invalid or unreasonable in scope,
the invalid or unreasonable terms will be replaced by terms that are valid and enforceable and that come closest to expressing
the intention of such invalid or unenforceable terms.

 

9.                 
Enforcement. Employee acknowledges and agrees that the Bank will suffer irreparable harm in the event that Employee
breaches any of Employee’s obligations under Sections 7 or 8 of this Agreement and that monetary damages would be inadequate
to compensate the Bank for such breach. Accordingly, Employee agrees that, in the event of a breach by Employee of any of Employee’s
obligations under Sections 7 or 8 of this Agreement, the Bank will be entitled to obtain from any court of competent jurisdiction
preliminary and permanent injunctive relief, and expedited discovery for the purpose of seeking relief, in order to prevent or
to restrain any such breach. The Bank will be entitled to recover its costs incurred in connection with any action to enforce Sections
7 or 8 of this Agreement, including reasonable attorneys’ fees and expenses.

 

10.             
Miscellaneous.

 

(a)              
Additional Regulatory Requirements. Notwithstanding anything contained in this Agreement to the contrary, it is understood
and agreed that the Bank shall not be required to make any payment or take any action under this Agreement if (i) the Bank is declared
by any governmental or regulatory agency having jurisdiction over the Bank (each a “Regulatory Authority”) to
be insolvent, in default or operating in an unsafe or unsound manner, or (ii) in the opinion of counsel to the Bank such payment
or action (A) would be prohibited by or would violate any provision of state or federal law applicable to the Bank, including without
limitation the Federal Deposit Insurance Act, the Federal Reserve Act and Chapter 53 of the North Carolina General Statutes as
now in effect or hereafter amended, (B) 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 (C) otherwise would be prohibited
by any Regulatory Authority.

 

    	 

    	 

    

 

(b)              
Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter
hereof and supersedes all prior agreements (whether written or oral and whether express or implied) between the parties to the
extent related to such subject matter.

 

(c)               
Successors and Assigns. This Agreement will be binding upon and inure to the benefit of the parties and their respective
successors, permitted assigns and, in the case of Employee, heirs, executors, and/or personal representatives. The Bank may freely
assign or transfer this Agreement to an affiliated company or to a successor following a merger, consolidation, sale of assets,
or other business transaction. Employee may not assign, delegate or otherwise transfer any of Employee’s rights, interests
or obligations in this Agreement without the prior written approval of the Bank.

 

(d)              
Notices. Any notice pursuant to this Agreement must be in writing and will be deemed effectively given to the other
party on the date it is actually delivered by (i) certified or registered U.S. mail, return receipt requested; (ii) overnight courier
service (such as FedEx); or (iii) personal delivery of such notice in person; in each case to the appropriate address shown below
(or to such other address as a party may designate by notice to the other party):

 

	If to Employee:	John Richard Spiker II
	 	8800 E. Pepper Ct.
	 	Oak Ridge, NC 27310
	 	 
	If to Bank:	Carolina Bank
	 	101 North Spring Street
	 	Greensboro, NC 27401
	 	Attention: Chief Executive Officer

 

(e)               
Amendments and Waivers. No amendment of any provision of this Agreement will be valid unless the amendment is in writing
and signed by the Bank and Employee. The failure of a party at any time to require performance of any provision of this Agreement
will not affect such party’s rights at a later time to enforce such provision. No waiver by a party of any breach of this
Agreement will be deemed to extend to any other breach hereunder or affect in any way any rights arising by virtue of any other
breach.

 

(f)               
Severability. Each provision of this Agreement is severable from every other provision of this Agreement. Any provision
of this Agreement that is determined by any court of competent jurisdiction to be invalid or unenforceable will not affect the
validity or enforceability of any other provision. Any provision of this Agreement held invalid or unenforceable only in part or
degree will remain in full force and effect to the extent not held invalid or unenforceable.

 

    	 

    	 

    

 

(g)              
Construction. The section headings in this Agreement are inserted for convenience only and are not intended to affect
the interpretation of this Agreement. Any reference in this Agreement to any “Section” refers to the corresponding
Section of this Agreement. The word “including” in this Agreement means “including without limitation.”
This Agreement will be construed as if drafted jointly by the Bank and Employee and no presumption or burden of proof will arise
favoring or disfavoring the Bank or Employee by virtue of the authorship of any provision in this Agreement. All words in this
Agreement will be construed to be of such gender or number as the circumstances require.

 

(h)              
Survival. The terms of Sections 5, 7, 8, 9, and 10 will survive the termination of this Agreement for any reason.

 

(i)                
Remedies Cumulative. The rights and remedies of the parties under this Agreement are cumulative (not alternative) and
in addition to all other rights and remedies available to such parties at law, in equity, by contract or otherwise.

 

(j)                
Governing Law. This Agreement will be governed by the laws of the State of North Carolina without giving effect to any
choice or conflict of law principles of any jurisdiction.

 

(k)              
Venue. The parties agree that any litigation arising out of or related to this Agreement or Employee’s employment
by Bank will be brought exclusively in any state or federal court in Guilford County, North Carolina. Each party (i) consents to
the personal jurisdiction of said courts, (ii) waives any venue or inconvenient forum defense to any proceeding maintained in such
courts, and (iii) agrees not to bring any proceeding arising out of or relating to this Agreement or Employee’s employment
by Bank in any other court.

 

(l)                
Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed an original but
all of which together will constitute one and the same agreement. Facsimile or PDF reproductions of original signatures will be
deemed binding for the purpose of the execution of this Agreement.

 

[SIGNATURE PAGE FOLLOWS]

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have executed and delivered this Agreement as of the date first written above.

 

	EMPLOYEE:	 	BANK:
	 	 	 	 
	 	 	CAROLINA BANK
	 	 	 	 
	/s/ John Richard Spiker II 	 	By:	/s/
Robert T. Braswell
	John Richard Spiker II	 	 	Robert T. Braswell
	 	 	 	President and Chief Executive Officer

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