Document:

Exhibit 10.8

 EXHIBIT (10)(viii) 
  
 EXECUTIVE SUPPLEMENTAL RETIREMENT PLAN 
  
 AGREEMENT 
  
 THIS AGREEMENT is made and entered into this 27th day of June, 2003, by and between the Home Savings Bank of Albemarle, SSB, a bank organized and existing under the laws of the State of North Carolina (hereinafter referred to as the
“Bank”), and R. Ronald Swanner, an Executive of the Bank (hereinafter referred to as the “Executive”). 
  
 WHEREAS, the Executive is now in the employ of the Bank and has for many years faithfully served the Bank. It is the consensus of the Board of
Directors (hereinafter referred to as the “Board”) that the Executive’s services have been of exceptional merit, in excess of the compensation paid and an invaluable contribution to the profits and position of the Bank in its field of
activity. The Board further believes that the Executive’s experience, knowledge of corporate affairs, reputation and industry contacts are of such value, and the Executive’s continued services so essential to the Bank’s future growth
and profits, that it would suffer severe financial loss should the Executive terminate their services; 
  
 ACCORDINGLY, the Board has adopted the Home Savings Bank of Albemarle, SSB Executive Supplemental Retirement Plan (hereinafter referred to as the
“Executive Plan”) and it is the desire of the Bank and the Executive to enter into this Agreement under which the Bank will agree to make certain payments to the Executive upon the Executive’s retirement or to the Executive’s
beneficiary(ies) in the event of the Executive’s death pursuant to the Executive Plan; 
  
 FURTHERMORE, it is the intent of the parties hereto that this Executive Plan be considered an unfunded arrangement maintained primarily to provide supplemental retirement benefits for the Executive, and be
considered a non-qualified benefit plan for purposes of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). The Executive is fully advised of the Bank’s financial status and has had substantial input in the
design and operation of this benefit plan; and 
  
 WHEREAS,
the Bank and the Executive are parties to a Retirement Payment Agreement dated October of 1985 between Home Savings Bank of Albemarle, SSB and R. Ronald Swanner that provides for the payment of certain benefits. This Executive Supplemental
Retirement Plan Agreement and the benefits provided hereunder shall replace and supercede the existing Retirement Payment Agreement and the benefits provided thereby; 

 NOW THEREFORE, in consideration of services the Executive has performed in the past and those to
be performed in the future, and based upon the mutual promises and covenants herein contained, the Bank and the Executive agree as follows: 
  

	I.	DEFINITIONS 

  

	 	A.	Effective Date: 

  
 The Effective Date of the Executive Plan shall be February 18, 2003. 
  

	 	B.	Plan Year: 

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

	 	C.	Retirement Date: 

  
 Retirement Date shall mean retirement from service with the Bank that becomes effective on the first day of the calendar month following the month in
which the Executive reaches age sixty-five (65) or such later date as the Executive may actually retire. 
  

	 	D.	Early Retirement Date: 

  
 Early Retirement Date shall mean a retirement from service which is effective prior to the Normal Retirement Age stated herein, provided the Executive
has attained age sixty (60). 
  

	 	E.	Termination of Service: 

  
 Termination of Service shall mean the Executive’s voluntary resignation of service by the Executive or the Bank’s discharge of the Executive
without cause, prior to the Early Retirement Date (Subparagraph I [D]). 
  

	 	F.	Index Retirement Benefit: 

  
 The Index Retirement Benefit for each Executive in the Executive Plan for each Plan Year shall be equal to the excess (if any) of the Index (Subparagraph
I [G]) for that Plan Year over the Opportunity Cost (Subparagraph I [H]) for that Plan Year, divided by a factor equal to 1.00 minus the marginal tax rate. 
  

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	 	G.	Index: 

  
 The Index for any Plan Year shall be the aggregate annual after-tax income from the life insurance contract(s) described hereinafter as defined by FASB
Technical Bulletin 85-4. This Index shall be applied as if such insurance contract(s) were purchased on the Effective Date of the Executive Plan. 
  

			
	 Insurance Company:
	 	 Mass Mutual Life Insurance Company

	 Policy Form:
	 	 Flexible Premium Adjustable Life

	 Policy Name:
	 	 Strategic Life Executive

	 Insured’s Age and Sex:
	 	 55, Male

	 Riders:
	 	 None

	 Ratings:
	 	 None

	 Option:
	 	 Level

	 Face Amount:
	 	 $927,027

	 Premiums Paid:
	 	 $423,300

	 Number of Premium Payments:
	 	 Single

	 Assumed Purchase Date:
	 	 February 18, 2003

		
	 Insurance Company:
	 	 New York Life Insurance Company

	 Policy Form:
	 	 Flexible Premium Adjustable Life

	 Policy Name:
	 	 Strategic Life Executive

	 Insured’s Age and Sex:
	 	 55, Male

	 Riders:
	 	 None

	 Ratings:
	 	 None

	 Option:
	 	 Level

	 Face Amount:
	 	 $1,022,554

	 Premiums Paid:
	 	 $423,200

	 Number of Premium Payments:
	 	 Single

	 Assumed Purchase Date:
	 	 February 18, 2003

  
 If such contracts of
life insurance are actually purchased by the Bank, then the actual policies as of the dates they were actually purchased shall be used in calculations under this Executive Plan. If such contracts of life insurance are not purchased or are
subsequently surrendered or lapsed, then the Bank shall receive annual policy illustrations that assume the above-described policies were purchased or had not subsequently surrendered or lapsed. Said illustration shall be received from the
respective insurance companies and will indicate the increase in policy values for purposes of calculating the amount of the Index. 
  
 In either case, references to the life insurance contracts are merely for purposes of calculating a benefit. The Bank has no obligation to purchase such
life insurance and, if purchased, the Executive and the Executive’s beneficiary(ies) shall have no ownership interest in such policy and shall always have no greater interest in the benefits under this Executive Plan than that of an unsecured
creditor of the Bank. 
  

	 	H.	Opportunity Cost: 

  
 The Opportunity Cost for any Plan Year shall be calculated by taking the 
  

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 sum of the amount of premiums for the life insurance policies described in the definition of
“Index” plus the amount of any after-tax benefits paid to the Executive pursuant to the Executive Plan (Paragraph II hereinafter) plus the amount of all previous years’ after-tax Opportunity Cost, and multiplying that sum by the
greater of either: (i) the average after tax yield of a one-year Treasury bill; or (ii) the Bank’s annualized after tax cost of funds as calculated from the Bank’s third quarter call report. 
  

	 	I.	Change of Control: 

  
 Change of Control means the cumulative transfer of more than fifty percent (50%) of the voting stock of the Bank from the Effective Date of this
Executive Plan. For the purposes of this Executive Plan, transfers on account of deaths or gifts, transfers between family members or transfers to a qualified retirement plan maintained by the Bank shall not be considered in determining whether
there has been a Change of Control. 
  

	 	J.	Normal Retirement Age: 

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

	 	K.	Benefit Accounting: 

  
 The Bank shall account for the benefit provided herein using the regulatory accounting principles of the Bank’s primary federal regulator. The Bank
shall establish an accrued liability retirement account for the Executive into which appropriate reserves shall be accrued. On the date of this agreement, said account shall have a pre-existing liability balance of One Hundred Ten Thousand Five
Hundred and 00/100ths Dollars ($110,500.00). 
  

	II.	INDEX BENEFITS 

  

	 	A.	Retirement Benefits: 

  
 Subject to Subparagraph II (E) hereinafter, an Executive who remains in the employ of the Bank until the Normal Retirement Age (Subparagraph I [J]) shall
be entitled to receive an annual benefit amount equal to the amount set forth in Exhibit A-1. Said payments shall be made monthly and shall commence thirty (30) days following the Executive’s retirement and shall continue until the Executive
attains age seventy-seven (77). Upon completion of the aforestated payments and commencing subsequent thereto and subject to Subparagraph II (A) (i) hereinbelow, the Index Retirement Benefit (Subparagraph I [F]) for each Plan Year subsequent to the
year in which the Executive attains age seventy-seven (77), and including the remaining portion of the Plan Year in which the Executive attains age seventy-seven (77) shall be paid to the Executive until the Executive’s death. 
  

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	 	(i)	The Index Retirement Benefit Adjustment: 

  
 The Index Retirement Benefit payment as set forth hereinabove for the first Plan Year subsequent to the Executive attaining age seventy-seven (77) shall
be adjusted according to a number equal to the aggregate of the Index Retirement Benefit (Subparagraph I [F]) for each Plan Year from the Effective Date of this agreement until the Plan Year subsequent to the Executive attaining age seventy-seven
(77) over the aggregate of the benefit payments the Executive actually received under the terms of this Executive Plan through that date. For example, if the Executive retires at age sixty-five (65) and the aggregate annual benefits received by the
Executive until the Plan Year the Executive attains age seventy-seven (77) were $900,000.00, and the aggregate Index Retirement Benefits for each Plan Year from the Effective Date of this agreement to the Plan Year the Executive’s
attains age seventy-seven (77) were $1,000,000.00 then the Executive’s Index Retirement Benefit in the first Plan Year said payment is payable to the Executive would be increased by $100,000.00. If said number is a deficit, then
the Index Retirement Benefit for the Plan Year when the Executive attains age seventy-seven (77) and each subsequent Plan Year’s benefit (if necessary) shall be reduced until the entire deficit has been recovered by the Bank. For each year
thereafter, the Index Retirement Benefit payment shall be paid as set forth in Subparagraph I (E). For example, if the Executive retires at age sixty-five (65) and the aggregate annual benefits to be received by the Executive until the Plan Year the
Executive attains age seventy-seven (77) were $1,000,000.00, and the aggregate Index Retirement Benefits for each Plan Year from the Effective Date of this agreement to the Plan Year the Executive attains age seventy-seven (77) were
$900,000.00 and the Executive’s Index Retirement Benefit was $90,000.00 in the first year, then the Executive would not receive any Index Retirement Benefit in the first year, and the second years’ Index Retirement benefit
would be reduced by $10,000.00. 
  

	 	B.	Early Retirement: 

  
 Subject to Subparagraph II (E), should the Executive elect Early Retirement or be discharged without cause by the Bank subsequent to the Early Retirement
Date [Subparagraph I (D)], the Executive shall be entitled to receive the annual benefit set forth in Exhibit A-2 reduced by the full number of years the Executive retires early prior to Normal 
  

 5 

 Retirement Age, times ten percent (10%). [For example, if Executive retires at age 61, the annual
benefit set forth in Exhibit A-2 shall be reduced by forty percent (40%): 61-65 = 4 x 10 = 40%]. Said payments shall be made monthly and shall commence thirty (30) days following the Executive’s early retirement and shall continue until the
Executive attains age seventy-seven (77). Upon completion of the aforestated payments and commencing subsequent thereto and subject to Subparagraph II (A) (i) hereinabove, the vested percentage set forth hereinabove of the Index Retirement Benefit
for each Plan Year subsequent to the year in which the Executive attains age seventy-seven (77), and including the remaining portion of the Plan Year in which the Executive attains age seventy-seven (77), shall be paid to the Executive until the
Executive’s death. 
  

	 	C.	Termination of Service: 

  
 Subject to Subparagraph II (E), should an Executive suffer a Termination of Service the Executive shall be entitled to receive the percentage set forth
hereinbelow that corresponds to number of full years of employment from date of first employment and age of Executive while employed by the Bank only, to a maximum of eighty percent (80%), of the accrued liability account balance. Said payments
shall be made monthly and shall commence thirty (30) days following the Executive’s Normal Retirement Age (Subparagraph I [J] and shall continue until the Executive attains age seventy-seven (77). Upon completion of the aforestated payments and
commencing subsequent thereto and subject to Subparagraph II (A) (i) hereinabove the Index Retirement Benefit for each Plan Year subsequent to the year in which the Executive attains age seventy-seven (77), and including the remaining portion of the
Plan Year in which the Executive attains age seventy-seven (77), shall be paid to the Executive until the Executive’s death. 
  

			
	 Number of full years from
 date of first
employment

	 	 Vested percent

	 1-16 or more and less than 60
 while employed by Bank only
	 	 5% per year
 to a maximum of 80%

		
	 Age 60 or older while
 employed by Bank
	 	 100% and
 Subparagraph II (B) applies

  

	 	D.	Death: 

  
 If the Executive dies while there is a balance in the Executive’s accrued liability retirement account, then the unpaid balance shall be paid in a
lump sum to the individual or individuals designated in writing by the Executive and filed with the Bank. In the absence of or a failure to designate a beneficiary, the unpaid balance shall be paid in a lump sum to the personal representative of the
Executive’s estate. If, upon death, the 
  

 6 

 Executive shall have received the total balance of the Executive’s accrued liability retirement
account, then no further benefit shall be due hereunder. In any event, upon the death of the Executive, the Executive’s beneficiary shall not be entitled to receive any Index Retirement Benefit. 
  

	 	E.	Discharge for Cause: 

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

	 	E.	Disability Benefit: 

  
 In the event that there is a finding of any qualified period of disability for the Executive, the Bank will pay the Executive a reduced benefit. This
reduced benefit shall be calculated by accruing interest on the existing liability balance (at the time of disability) for the benefit of the Executive at seven and one-half percent (7.5%) until Normal Retirement Age. At Normal Retirement Age the
Bank shall pay out the liability balance (plus interest that will be accrued at seven and one-half percent (7.5%) after Normal Retirement Age) in twelve (12) equal installments. If death occurs subsequent to a disability, the benefit will be paid in
accordance with Section II (D). 
  
 An Executive is considered
under a Period of Disability only if s/he has a condition that satisfies the definition of disability as defined in the Mass Mutual disability policy purchased by the Bank in conjunction with the implementation of this benefit agreement. If the Bank
has no such policy, the Executive will be considered to be disabled based on the definition of disability in the Bank’s long-term group disability policy. If there is a dispute regarding whether the Executive is disabled, such dispute shall be
resolved by a physician selected by the Bank and such resolution shall be binding upon all parties to this Agreement. 
  
 If the Executive is under a Period of Disability on the date that s/he reaches Normal Retirement Age, this agreement shall automatically terminate and
the Executive shall not be entitled to any further benefits under this Agreement. 
  

 7 

 If the Period of Disability ends prior to Normal Retirement Age and the Executive has an actual return
of employment at the Bank, the Bank will pay the Executive a reduced retirement benefit amount. The retirement benefit amount shall be reduced by the twelve (12) year annual annuity that would be payable at Normal Retirement Age from the Trust
assuming the trust assets earned a net rate of two and four tenths percent (2.4%) annually starting from the date of the existence of said Trust. 
  

	 	G.	Death Benefit: 

  
 Except as set forth above, there is no death benefit provided under this Agreement. 
  

	III.	RESTRICTIONS UPON FUNDING 

  
 The Bank shall have no obligation to set aside, earmark or entrust any fund or money with which to pay its obligations under this Executive Plan. The
Executive, their beneficiary(ies), or any successor in interest shall be and remain simply a general creditor of the Bank in the same manner as any other creditor having a general claim for matured and unpaid compensation. 
  
 The Bank reserves the absolute right, at its sole discretion, to either fund
the obligations undertaken by this Executive Plan or to refrain from funding the same and to determine the extent, nature and method of such funding. Should the Bank elect to fund this Executive Plan, in whole or in part, through the purchase of
life insurance, mutual funds, disability policies or annuities, the Bank reserves the absolute right, in its sole discretion, to terminate such funding at any time, in whole or in part. At no time shall any Executive be deemed to have any lien nor
right, title or interest in or to any specific funding investment or to any assets of the Bank. 
  
 If the Bank elects to invest in a life insurance, disability or annuity policy upon the life of the Executive, then the Executive shall assist the Bank by
freely submitting to a physical exam and supplying such additional information necessary to obtain such insurance or annuities. 
  

	IV.	CHANGE OF CONTROL 

  
 Upon a Change of Control (Subparagraph I [I]), if the Executive subsequently suffers a Termination of Service (Subparagraph I [E]), then the Executive
shall receive the benefits promised in this Executive Plan upon attaining Normal Retirement Age, as if the Executive had been continuously employed by the Bank until the Executive’s Normal Retirement Age. The Executive will also remain eligible
for all promised death benefits in this Executive Plan. In addition, no sale, merger, or consolidation of the Bank shall take place unless the new or surviving entity expressly acknowledges the obligations under this Executive Plan and agrees to
abide by its terms. 
  

 8 

	V.	MISCELLANEOUS 

  

	 	A.	Alienability and Assignment Prohibition: 

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

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

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

	 	C.	Amendment or Revocation: 

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

	 	D.	Gender: 

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

	 	E.	Effect on Other Bank Benefit Plans: 

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

 9 

	 	F.	Headings: 

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

  

	 	G.	Applicable Law: 

  
 The validity and interpretation of this Agreement shall be governed by the laws of the State of North Carolina. 
  

	 	H.	12 U.S.C. § 1828(k): 

  
 Any payments made to the Executive pursuant to this Executive Plan, or otherwise, are subject to and conditioned upon their compliance with 12 U.S.C.
§ 1828(k) or any regulations promulgated thereunder. 
  

	 	I.	Partial Invalidity: 

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

  

	 	J.	Employment: 

  
 No provision of this Executive Plan shall be deemed to restrict or limit any existing employment agreement by and between the Bank and the Executive, nor
shall any conditions herein create specific employment rights to the Executive nor limit the right of the Employer to discharge the Executive with or without cause. In a similar fashion, no provision shall limit the Executive’s rights to
voluntarily sever the Executive’s employment at any time. 
  

	 	K.	Supersede and Entire Agreement: 

  
 This Agreement shall supersede the Retirement Payment Agreement dated October of 1985, and shall constitute the entire agreement of the parties
pertaining to this particular Executive Supplemental Retirement Plan Agreement. 
  

	VI.	ERISA PROVISION 

  

	 	A.	Named Fiduciary and Plan Administrator: 

  
 The “Named Fiduciary and Plan Administrator” of this Executive Plan shall be Home Savings Bank of Albemarle, SSB, until its resignation or

  

 10 

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

	 	B.	Claims Procedure and Arbitration: 

  
 In the event a dispute arises over benefits under this Executive Plan and benefits are not paid to the Executive (or to the Executive’s
beneficiary(ies) in the case of the Executive’s death) and such claimants feel they are entitled to receive such benefits, then a written claim must be made to the Named Fiduciary and Plan Administrator named above within sixty (60) days from
the date payments are refused. The Named Fiduciary and Plan Administrator shall review the written claim and if the claim is denied, in whole or in part, they shall provide in writing within sixty (60) days of receipt of such claim the specific
reasons for such denial, reference to the provisions of this Executive Plan upon which the denial is based and any additional material or information necessary to perfect the claim. Such written notice shall further indicate the additional steps to
be taken by claimants if a further review of the claim denial is desired. A claim shall be deemed denied if the Named Fiduciary and Plan Administrator fail to take any action within the aforesaid sixty-day period. 
  
 If claimants desire a second review they shall notify the Named Fiduciary
and Plan Administrator in writing within sixty (60) days of the first claim denial. Claimants may review this Executive Plan or any documents relating thereto and submit any written issues and comments it may feel appropriate. In their sole
discretion, the Named Fiduciary and Plan Administrator shall then review the second claim and provide a written decision within sixty (60) days of receipt of such claim. This decision shall likewise state the specific reasons for the decision and
shall include reference to specific provisions of the Plan Agreement upon which the decision is based. 
  
 If claimants continue to dispute the benefit denial based upon completed performance of this Executive Plan or the meaning and effect of the terms and
conditions thereof, then claimants may submit the dispute to an arbitrator for final arbitration. The arbitrator shall be selected by mutual agreement of the Bank and the claimants. The arbitrator shall operate under any generally recognized set of
arbitration rules. The parties hereto agree that they and their heirs, personal representatives, successors and assigns shall be bound by the decision of such arbitrator with respect to any controversy properly submitted to it for determination.

  
 Where a dispute arises as to the Bank’s discharge of
the Executive “for cause,” such dispute shall likewise be submitted to arbitration as above described and the parties hereto agree to be bound by the decision thereunder. 
  

 11 

	VII.	TERMINATION OR MODIFICATION OF AGREEMENT BY REASON OF CHANGES IN THE LAW, RULES OR REGULATIONS 

  
 The Bank is entering into this Agreement upon the assumption that certain existing tax laws, rules and regulations will
continue in effect in their current form. If any said assumptions should change and said change has a detrimental effect on this Executive Plan, then the Bank reserves the right to terminate or modify this Agreement accordingly. Upon a Change of
Control (Subparagraph I [I]), this paragraph shall become null and void effective immediately upon said Change of Control. 
  
 IN WITNESS WHEREOF, the parties hereto acknowledge that each has carefully read this Agreement and executed the original thereof on the first day
set forth hereinabove, and that upon execution, each has received a conforming copy. 
  

					
	 	 	HOME SAVINGS BANK OF ALBEMARLE, SSB
	 	 	 Albemarle, NC

			
	  

	 	 By:
	 	  

	 Witness
	 	 	 	 Title

			
	
	 	 	 	 /s/ R. Ronald Swanner

	 Witness
	 	 	 	 R. Ronald Swanner

  

 12 

 BENEFICIARY DESIGNATION FORM 
 FOR THE EXECUTIVE SUPPLEMENTAL 
 RETIREMENT PLAN AGREEMENT 
  

	I.	PRIMARY DESIGNATION 

 (You may refer to the
beneficiary designation information prior to completion of this form.) 
  

	 	A.	Person(s) as a Primary Designation: 

 (Please indicate the percentage for each beneficiary.) 
  
 Name                                      
                                        
          
Relationship                                      
                   /             % 
  
 Address:                                     
                                        
                                        
                                        
                          
                                        
             (Street)                          
                                      (City) 
                               (State)        
            (Zip) 
  
 Name                                      
                                        
              
Relationship                                      
                   /             % 
  
 Address:                                     
                                        
                                        
                                        
                            
                                        
             (Street)                          
                                      (City) 
                               (State)        
            (Zip) 
  
 Name                                      
                                        
              
Relationship                                      
                   /             % 
  
 Address:                                     
                                        
                                        
                                        
                                
                                        
             (Street)                          
                                      (City) 
                               (State)        
            (Zip) 
  
 Name                                      
                                        
              
Relationship                                      
                   /             % 
  
 Address:                                     
                                        
                                        
                                        
                            
                                        
             (Street)                          
                                      (City) 
                               (State)        
            (Zip) 
  

	 	B.	Estate as a Primary Designation: 

  
 My Primary Beneficiary is The Estate of
                                        
                     as set forth in the last will and testament dated the      day of
                    ,              and any codicils thereto. 
  

	 	C.	Trust as a Primary Designation: 

  
 Name of the Trust:
                                        
                                        
                                        
                                        
               
  
 Execution Date of the Trust:      /      /              
  
 Name of the Trustee:
                                        
                                        
                                        
                                        
           
  
 Beneficiary(ies) of the Trust (please indicate the percentage for each beneficiary): 
  
 ______________________________________________________________________________________________________ 
  
 ______________________________________________________________________________________________________ 
  
 Is this an Irrevocable Life Insurance Trust?
             Yes              No 
 (If yes and this designation is for a Split Dollar agreement, an Assignment of Rights form should be completed.) 
  

 13 

	II.	SECONDARY (CONTINGENT) DESIGNATION 

  

	 	A.	Person(s) as a Secondary (Contingent) Designation: 

 (Please indicate the percentage for each beneficiary.) 
  
 Name                                      
                                        
              
Relationship                                      
                   /             % 
  
 Address:                                     
                                        
                                        
                                        
                          
                                        
             (Street)                          
                                      (City) 
                               (State)        
            (Zip) 
  
 Name                                      
                                        
              
Relationship                                      
                   /             % 
  
 Address:                                     
                                        
                                        
                                        
                            
                                        
             (Street)                          
                                      (City) 
                               (State)        
            (Zip) 
  
 Name                                      
                                        
              
Relationship                                      
                   /             % 
  
 Address:                                     
                                        
                                        
                                        
                            
                                        
             (Street)                          
                                      (City) 
                               (State)        
            (Zip) 
  
 Name                                      
                                        
              
Relationship                                      
                   /             % 
  
 Address:                                     
                                        
                                        
                                        
                          
                                        
             (Street)                          
                                      (City) 
                               (State)        
            (Zip) 
  

	 	B.	Estate as a Secondary (Contingent) Designation: 

  
 My Secondary Beneficiary is The Estate of
                                        
                     as set forth in my last will and testament dated the      day of
                    ,              and any codicils thereto. 
  

	 	C.	Trust as a Secondary (Contingent) Designation: 

  
 Name of the Trust:
                                        
                                        
                                        
                                        
       
  
 Execution Date of the
Trust:      /      /              
  
 Name of the Trustee:
                                        
                                        
                                        
                                        
   
  
 Beneficiary(ies) of the Trust (please indicate
the percentage for each beneficiary): 
  
 ______________________________________________________________________________________________________ 
  
 ______________________________________________________________________________________________________ 
  
 All sums payable under the Executive Supplemental Retirement Plan Agreement
by reason of my death shall be paid to the Primary Beneficiary(ies), if he or she survives me, and if no Primary Beneficiary(ies) shall survive me, then to the Secondary (Contingent) Beneficiary(ies). This beneficiary designation is valid until the
participant notifies the bank in writing. 
  

			
	  

	  	

	 R. Ronald Swanner
	  	Date

  

 14 

 EXHIBIT “A-1” 
  

				
	 End of
 Year Age:

	  	 Benefit
 Amount

	 65
	  	$	108,200
	 66
	  	$	110,021
	 67
	  	$	111,604
	 68
	  	$	113,182
	 69
	  	$	114,866
	 70
	  	$	116,500
	 71
	  	$	117,836
	 72
	  	$	119,493
	 73
	  	$	120,803
	 74
	  	$	122,383
	 75
	  	$	122,903
	 76
	  	$	124,247

  

 15 

 EXHIBIT “A-2” 
  

					
	 Plan Years Subsequent
 to Early
Retirement
 Date as Defined in
 Subparagraph I(D)
of
 the Agreement

	  	 Benefit
 Amount

	 
	 1
	  	$	108,200	 
	 2
	  	$	110,021	 
	 3
	  	$	111,604	 
	 4
	  	$	113,182	 
	 5
	  	$	114,866	 
	 6
	  	$	116,500	 
	 7
	  	$	117,836	 
	 8
	  	$	119,493	 
	 9
	  	$	120,803	 
	 10
	  	$	122,383	 
	 11
	  	$	122,903	 
	 12
	  	$	124,247	*

	*	This benefit amount shall remain constant for any remaining Plan Years that the Executive may be entitled to receive a fixed benefit amount pursuant to Subparagraph II (B) of the
Agreement; the Executive’s age: 77 

  

 16Exhibit 10.9

 EXHIBIT (10)(ix) 
  
 LIFE INSURANCE 
  
 ENDORSEMENT METHOD SPLIT DOLLAR PLAN 
  
 AGREEMENT 
  

			
	 Insurer:
	  	 Mass Mutual Life Insurance Company

	 	  	 New York Life Insurance Company

		
	 Policy Number:
	  	 0053xxx

	 	  	 56603xxx

		
	 Bank:
	  	 Home Savings Bank of Albemarle, SSB

		
	 Insured:
	  	 R. Ronald Swanner

		
	 Relationship of Insured to Bank:
	  	 Executive

		
	 Trust:
	  	Rabbi Trust for the Executive Supplemental Retirement Plan Agreement, Director Supplemental Retirement Plan Agreement, and the Endorsement Method Split Dollar Plan Agreement

  
 The respective rights and duties of
the Bank and the Insured in the above-referenced policy shall be pursuant to the terms set forth below: 
  

	I.	DEFINITIONS 

  
 Refer to the policy contract for the definition of any terms in this Agreement that are not defined herein. If a definition of a term in the policy is
inconsistent with the definition of a term in this Agreement, then the definition of the term as set forth in this Agreement shall supersede and replace the definition of the terms as set forth in the policy. 
  

	II.	POLICY TITLE AND OWNERSHIP 

  
 Title and ownership shall reside in the Trustee for the Rabbi Trust for the Executive Supplemental Retirement Plan Agreement, Director Supplemental
Retirement Plan Agreement, and the Endorsement Method Split Dollar Plan Agreement for its use and for the use of the Insured all in accordance with this Agreement. The Trustee at the direction of the Bank may, to the extent of its interest, exercise
the right to borrow or withdraw on the policy cash values. 

 Where the Trustee at the direction of the Bank and the Insured (or assignee, with the consent of the
Insured) mutually agree to exercise the right to increase the coverage under the subject Split Dollar policy, then, in such event, the rights, duties and benefits of the parties to such increased coverage shall continue to be subject to the terms of
this Agreement. 
  

	III.	BENEFICIARY DESIGNATION RIGHTS 

  
 The Insured (or assignee) shall have the right and power to designate a beneficiary or beneficiaries to receive the Insured’s share of the proceeds
payable upon the death of the Insured, and to elect and change a payment option for such beneficiary, subject to any right or interest the Trustee at the direction of the Bank or the Trust may have in such proceeds, as provided in this Agreement.

  

	IV.	PREMIUM PAYMENT METHOD 

  
 Subject to the Bank’s absolute right to surrender or terminate the policy at any time and for any reason, the Bank or the Trustee at the direction of
the Bank shall pay an amount equal to the planned premiums and any other premium payments that might become necessary to keep the policy in force. 
  

	V.	TAXABLE BENEFIT 

  
 Annually the Insured will receive a taxable benefit equal to the assumed cost of insurance as required by the Internal Revenue Service. The Bank or the
Trustee at the direction of the Bank will report to the Insured the amount of imputed income each year on Form W-2 or its equivalent. 
  

	VI.	DIVISION OF DEATH PROCEEDS 

  
 Subject to Paragraphs VII and IX herein, the division of the death proceeds of the policy is as follows: 
  

	 	A.	Should the Insured be employed by the Bank at death, the Insured’s beneficiary(ies), designated in accordance with Paragraph III, shall be entitled to an amount equal to
ninety-five percent (95%) of the net-at-risk insurance portion of the proceeds. The net-at-risk insurance portion is the total proceeds less the cash value of the policy. 

  

	 	B.	Should the Insured not be employed by the Bank at the time of his or her death, the Insured’s beneficiary(ies), designated in accordance with Paragraph III, shall be entitled
to the percentage as set forth hereinbelow of the proceeds described in Subparagraph VI (A) above that corresponds to the number of full years the Insured has been employed by the Bank since the date of first employment and the Insured’s age
while employed by the Bank. 

  

	

  

 2 

			
	 Number of full years from date of first employment

	 	 Vested percent

	 1-16 or more and less than 60
 while employed by Bank only
	 	 5% per year
 to a maximum of 80%

		
	 Age 60 or older while
 employed by Bank
	 	100%

  

	 	C.	The Bank shall be entitled to the remainder of such proceeds. 

  

	 	D.	The Bank and the Insured (or assignees) shall share in any interest due on the death proceeds on a pro rata basis as the proceeds due each respectively bears to the total proceeds,
excluding any such interest. 

  

	VII.	DIVISION OF THE CASH SURRENDER VALUE OF THE POLICY 

  
 The Bank or the Trust shall at all times be entitled to an amount equal to the policy’s cash value, as that term is defined in the policy contract,
less any policy loans and unpaid interest or cash withdrawals previously incurred by the Bank or the Trustee at the direction of the Bank and any applicable surrender charges. Such cash value shall be determined as of the date of surrender or death
as the case may be. 
  

	VIII.	RIGHTS OF PARTIES WHERE POLICY ENDOWMENT OR ANNUITY ELECTION EXISTS 

  
 In the event the policy involves an endowment or annuity element, the Bank’s or the Trust’ right and interest in any endowment proceeds or
annuity benefits, on expiration of the deferment period, shall be determined under the provisions of this Agreement by regarding such endowment proceeds or the commuted value of such annuity benefits as the policy’s cash value. Such endowment
proceeds or annuity benefits shall be considered to be like death proceeds for the purposes of division under this Agreement. 
  

	IX.	TERMINATION OF AGREEMENT 

  
 This Agreement shall terminate upon the occurrence of any one of the following: 
  

	 	A.	The Insured shall be discharged from employment with the Bank for cause. The term “for cause” shall mean any of the following that result in an adverse effect on the Bank:
(i) gross negligence or gross neglect; (ii) the commission of a felony or gross misdemeanor involving moral turpitude, fraud, or dishonesty; (iii) the willful violation of any law, rule, or regulation (other than a traffic violation or similar
offense); (iv) an intentional failure to perform stated duties; or (v) a breach of fiduciary duty involving personal profit; or 

  

 3 

	 	B.	Surrender, lapse, or other termination of the Policy by the Bank. 

  
 Upon such termination, the Insured (or assignee) shall have a fifteen (15) day option to receive from the Bank or the Trustee at the direction of the Bank
an absolute assignment of the policy in consideration of a cash payment to the Bank or the Trustee at the direction of the Bank, whereupon this Agreement shall terminate. Such cash payment referred to hereinabove shall be the greater of: 

 

	 	A.	The Bank’s or the Trust’s share of the cash value of the policy on the date of such assignment, as defined in this Agreement; or 

  

	 	B.	The amount of the premiums which have been paid by the Bank or the Trustee at the direction of the Bank prior to the date of such assignment. 

  
 If, within said fifteen (15) day period, the Insured fails to exercise said
option, fails to procure the entire aforestated cash payment, or dies, then the option shall terminate and the Insured (or assignee) agrees that all of the Insured’s rights, interest and claims in the policy shall terminate as of the date of
the termination of this Agreement. 
  
 The Insured expressly
agrees that this Agreement shall constitute sufficient written notice to the Insured of the Insured’s option to receive an absolute assignment of the policy as set forth herein. 
  
 Except as provided above, this Agreement shall terminate upon distribution of the death benefit proceeds in accordance with
Paragraph VI above. 
  

	X.	INSURED’S OR ASSIGNEE’S ASSIGNMENT RIGHTS 

  
 The Insured may not, without the written consent of the Bank, assign to any individual, trust or other organization, any right, title or interest in the
subject policy nor any rights, options, privileges or duties created under this Agreement. 
  

	XI.	AGREEMENT BINDING UPON THE PARTIES 

  
 This Agreement shall bind the Insured and the Bank or the Trustee at the direction of the Bank, their heirs, successors, personal representatives and
assigns. 
  

 4 

	XII.	ERISA PROVISIONS  

  
 The following provisions are part of this Agreement and are intended to meet the requirements of the Employee Retirement Income Security Act of
1974 (“ERISA”): 
  

	 	A.	Named Fiduciary and Plan Administrator. 

  
 The “Named Fiduciary and Plan Administrator” of this Endorsement Method Split Dollar Agreement shall be Home Savings Bank of Albemarle, SSB
until its resignation or removal by the Board of Directors. As Named Fiduciary and Plan Administrator, the Bank or the Trustee at the direction of the Bank shall be responsible for the management, control, and administration of this Split Dollar
Plan as established herein. The Named Fiduciary may delegate to others certain aspects of the management and operation responsibilities of the Plan, including the employment of advisors and the delegation of any ministerial duties to qualified
individuals. 
  

	 	B.	Funding Policy. 

  
 Subject to the Bank’s absolute right to surrender or terminate the policy at any time and for any reason, the funding policy for this Split Dollar
Plan shall be to maintain the subject policy in force by paying, when due, all premiums required. 
  

	 	C.	Basis of Payment of Benefits. 

  
 Direct payment by the Insurer is the basis of payment of benefits under this Agreement, with those benefits in turn being based on the payment of
premiums as provided in this Agreement. 
  

	 	D.	Claim Procedures. 

  
 Claim forms or claim information as to the subject policy can be obtained by contacting Benmark, Inc. (800-544-6079). When the Named Fiduciary has a
claim which may be covered under the provisions described in the insurance policy, they should contact the office named above, and they will either complete a claim form and forward it to an authorized representative of the Insurer or advise the
named Fiduciary what further requirements are necessary. The Insurer will evaluate and make a decision as to payment. If the claim is payable, a benefit check will be issued in accordance with the terms of this Agreement. 
  
 In the event that a claim is not eligible under the policy, the Insurer
will notify the Named Fiduciary of the denial pursuant to the requirements under the terms of the policy. If the Named Fiduciary is dissatisfied with the denial of the claim and wishes to contest such claim denial, they should contact the office
named above and they will assist in making an inquiry to the Insurer. All objections to the Insurer’s actions should be in writing and submitted to the office named above for transmittal to the Insurer. 
  

 5 

	XIII.	GENDER 

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

	XIV.	INSURANCE COMPANY NOT A PARTY TO THIS AGREEMENT 

  
 The Insurer shall not be deemed a party to this Agreement, but will respect the rights of the parties as herein developed upon receiving an executed copy
of this Agreement. Payment or other performance in accordance with the policy provisions shall fully discharge the Insurer from any and all liability. 
  

	XV.	CHANGE OF CONTROL 

  
 Change of Control shall be deemed to be the cumulative transfer of more than fifty percent (50%) of the voting stock of the Bank from the date of this
Agreement. For the purposes of this Agreement, transfers on account of death or gifts, transfers between family members, or transfers to a qualified retirement plan maintained by the Bank shall not be considered in determining whether there has been
a Change of Control. Upon a Change of Control, if the Insured’s employment is subsequently terminated, except for cause, then the Insured shall be one hundred percent (100%) vested in the benefits promised in this Agreement and, therefore, upon
the death of the Insured, the Insured’s beneficiary(ies) (designated in accordance with Paragraph III) shall receive the death benefit provided herein as if the Insured had died while employed by the Bank (See Subparagraph VI [A]). 

 

	XVI.	AMENDMENT OR REVOCATION 

  
 Subject to the Bank’s absolute right to surrender or terminate the policy at any time and for any reason, it is agreed by and between the parties
hereto that, during the lifetime of the Insured, this Agreement may be amended or revoked at any time or times, in whole or in part, by the mutual written consent of the Insured and the Bank. 
  

	XVII.	EFFECTIVE DATE 

  
 The Effective Date of this Agreement shall be February 18, 2003. 
  

	XVIII.	SEVERABILITY AND INTERPRETATION 

  
 If a provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall nonetheless be enforceable according to their
terms. Further, in the event that any provision is held to be over broad as written, such provision shall be deemed amended to narrow its application to the extent necessary to make the provision enforceable according to law and enforced as amended.

  

 6 

	XIX.	APPLICABLE LAW 

  
 The validity and interpretation of this Agreement shall be governed by the laws of the State of North Carolina. 
  
 Executed at Albemarle, North Carolina this 27th day of June, 2003. 
  

					
	 	 	HOME SAVINGS BANK OF ALBEMARLE, SSB
	 	 	 Albemarle, North Carolina

			
	  

	 	 By:
	 	  

	 Witness
	 	 Title
	 	 
			
	  

	 	 	 	 /s/ R. Ronald Swanner

	 Witness
	 	 	 	 R. Ronald Swanner

  

 7 

 BENEFICIARY DESIGNATION FORM 
 FOR THE LIFE INSURANCE ENDORSEMENT METHOD 
 SPLIT DOLLAR PLAN AGREEMENT

  

	I.	PRIMARY DESIGNATION 

 (You may refer to the
beneficiary designation information prior to completion.) 
  

	 	A.	Person(s) as a Primary Designation: 

 (Please indicate the percentage for each beneficiary.) 
  
 Name                                      
                                        
              
Relationship                                      
                   /             % 
  
 Address:                                     
                                        
                                        
                                        
                          
                                        
             (Street)                          
                                      (City) 
                               (State)        
            (Zip) 
  
 Name                                      
                                        
              
Relationship                                      
                   /             % 
  
 Address:                                     
                                        
                                        
                                        
                          
                                        
             (Street)                          
                                      (City) 
                               (State)        
            (Zip) 
  
 Name                                      
                                        
              
Relationship                                      
                   /             % 
  
 Address:                                     
                                        
                                        
                                        
                              
                                        
             (Street)                          
                                      (City) 
                               (State)        
            (Zip) 
  
 Name                                      
                                        
              
Relationship                                      
                   /             % 
  
 Address:                                     
                                        
                                        
                                        
                            
                                        
             (Street)                          
                                      (City) 
                               (State)        
            (Zip) 
  

	 	B.	Estate as a Primary Designation: 

  
 My Primary Beneficiary is The Estate of
                                        
                     as set forth in the last will and testament dated the      day of
                    ,              and any codicils thereto. 
  

	 	C.	Trust as a Primary Designation: 

  
 Name of the Trust:
                                        
                                        
                                        
                                        
       
  
 Execution Date of the
Trust:      /      /              
  
 Name of the Trustee:
                                        
                                        
                                        
                                        
   
  
 Beneficiary(ies) of the Trust (please indicate
the percentage for each beneficiary): 
  
 ______________________________________________________________________________________________________ 
  
 ______________________________________________________________________________________________________ 
  
 Is this an Irrevocable Life Insurance Trust?
             Yes              No 
 (If yes and this designation is for a Split Dollar agreement, an Assignment of Rights form should be completed.) 
  

	II.	SECONDARY (CONTINGENT) DESIGNATION 

  

	 	A.	Person(s) as a Secondary (Contingent) Designation: 

 (Please indicate the percentage for each beneficiary.) 
  
 Name                                      
                                        
              
Relationship                                      
                   /             % 
  
 Address:                                     
                                        
                                        
                                        
                          
                                        
             (Street)                          
                                      (City) 
                               (State)        
            (Zip) 

 Name                                      
                                        
              
Relationship                                      
                   /             % 
  
 Address:                                     
                                        
                                        
                                        
                          
                                        
             (Street)                          
                                      (City) 
                               (State)        
            (Zip) 
  
 Name                                      
                                        
              
Relationship                                      
                   /             % 
  
 Address:                                     
                                        
                                        
                                        
                          
                                        
             (Street)                          
                                      (City) 
                               (State)        
            (Zip) 
  
 Name                                      
                                        
              
Relationship                                      
                   /             % 
  
 Address:                                     
                                        
                                        
                                        
                            
                                        
             (Street)                          
                                      (City) 
                               (State)        
            (Zip) 
  

	 	B.	Estate as a Secondary (Contingent) Designation: 

  
 My Secondary Beneficiary is The Estate of
                                        
                     as set forth in my last will and testament dated the      day of
                    ,              and any codicils thereto. 
  

	 	C.	Trust as a Secondary (Contingent) Designation: 

  
 Name of the Trust:
                                        
                                        
                                        
                                        
       
  
 Execution Date of the
Trust:      /      /              
  
 Name of the Trustee:
                                        
                                        
                                        
                                        
   
  
 Beneficiary(ies) of the Trust (please indicate
the percentage for each beneficiary): 
  
 ______________________________________________________________________________________________________ 
  
 ______________________________________________________________________________________________________ 
  
 All sums payable under the Life Insurance Endorsement Method Split Dollar
Plan Agreement by reason of my death shall be paid to the Primary Beneficiary(ies), if he or she survives me, and if no Primary Beneficiary(ies) shall survive me, then to the Secondary (Contingent) Beneficiary(ies). This beneficiary designation is
valid until the participant notifies the bank in writing. 
  

			
	  

	  	

	 R. Ronald Swanner
	  	Date

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