Document:

Salary Continuation Agreement between the Bank and Kirk P. Robinson

 EXHIBIT 10.16 
 MOUNTAIN 1ST BANK & TRUST COMPANY 
 SALARY
CONTINUATION AGREEMENT 
 This
SALARY CONTINUATION AGREEMENT (this “Agreement”) is entered into as of this 26th day of March, 2008, by and between Mountain 1st Bank & Trust Company, a North Carolina-chartered bank (the “Bank”), and Kirk P. Robinson, its Chief Credit Officer (the “Executive”). 
 WHEREAS, the Executive has contributed substantially to the Bank’s success and the Bank desires that the
Executive continue in its employ, 
 WHEREAS, to encourage the Executive to remain an employee, the Bank
is willing to provide to the Executive salary continuation benefits payable from the Bank’s general assets, 
 WHEREAS, none of the conditions or events included in the definition of the term “golden parachute payment” that is set forth in section 18(k)(4)(A)(ii) of the Federal Deposit Insurance Act [12
U.S.C. 1828(k)(4)(A)(ii)] and in Federal Deposit Insurance Corporation Rule 359.1(f)(1)(ii) [12 CFR 359.1(f)(1)(ii)] exists or, to the best knowledge of the Bank, is contemplated insofar as the Bank is concerned, and 
 WHEREAS, the parties hereto intend that this Agreement shall be considered an unfunded arrangement maintained
primarily to provide supplemental retirement benefits for the Executive, and to 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. 
 NOW THEREFORE, in consideration of these
premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Executive and the Bank hereby agree as follows. 
 ARTICLE 1 
 DEFINITIONS 
 1.1 “Accrual Balance” means the liability that should be accrued by the
Bank under generally accepted accounting principles (“GAAP”) for the Bank’s obligation to the Executive under this Agreement, applying Accounting Principles Board Opinion No. 12, as amended by Financial Accounting Standard
No. 106, and the calculation method and discount rate specified hereinafter. The Accrual Balance is determined such that when it is credited with interest each month the Accrual Balance at Normal Retirement Age equals the present value of the
normal retirement benefits. The discount rate means the rate used by the Plan Administrator for determining the Accrual Balance. The rate is based on the yield on a 20-year corporate bond rated Aa by Moody’s, rounded to the nearest  1/4%. In its sole discretion the Plan Administrator may adjust the discount rate to maintain the rate within reasonable standards
according to GAAP. 
 1.2 “Beneficiary” means each designated person, or the estate of the deceased Executive,
entitled to benefits, if any, upon the death of the Executive, determined according to Article 4. 
 1.3 “Beneficiary
Designation Form” means the form established from time to time by the Plan Administrator that the Executive completes, signs, and returns to the Plan Administrator to designate one or more Beneficiaries. 
 1.4 “Change in Control” shall mean a change in control as defined in Internal Revenue Code section 409A and rules, regulations,
and guidance of general application thereunder issued by the Department of the Treasury, including – 

 (a) Change in ownership: a change in ownership of the Bank occurs on the date any one person or
group accumulates ownership of Bank stock constituting more than 50% of the total fair market value or total voting power of Bank stock, or 
 (b) Change in effective control: (x) any one person or more than one person acting as a group acquires within a 12-month period ownership of Bank stock possessing 30% or more of the total voting power of Bank stock, or
(y) a majority of the Bank’s board of directors is replaced during any 12-month period by directors whose appointment or election is not endorsed in advance by a majority of the Bank’s board of directors, or 
 (c) Change in ownership of a substantial portion of assets: a change in ownership of a substantial portion of the Bank’s assets occurs if in
a 12-month period any one person or more than one person acting as a group acquires from the Bank assets having a total gross fair market value equal to or exceeding 40% of the total gross fair market value of all of the Bank’s assets
immediately before the acquisition or acquisitions. For this purpose, gross fair market value means the value of the Bank’s assets, or the value of the assets being disposed of, determined without regard to any liabilities associated with the
assets. 
 Despite anything in this Agreement to the contrary, a transaction in which a company becomes the holding company for the Bank
shall not be considered a Change in Control for purposes of this Agreement, provided the offer, sale, and issuance of shares of the holding company to Bank stockholders as part of the holding company reorganization are exempt from registration under
the Securities Act of 1933 by section 3(a)(12) of that Act. If a holding company reorganization occurs, references in this section 1.4 to the Bank shall mean the holding company instead, and after a holding company reorganization a sale of all or
substantially all the holding company’s assets includes sale of the Bank alone. 
 1.5 “Code” means the Internal
Revenue Code of 1986, as amended, and rules, regulations, and guidance of general application issued thereunder by the Department of the Treasury. 
 1.6 “Disability” means, because of a medically determinable physical or mental impairment that can be expected to result in death or that can be expected to last for a continuous period of at least 12 months,
(x) the Executive is unable to engage in any substantial gainful activity, or (y) the Executive is receiving income replacement benefits for a period of at least three months under an accident and health plan of the employer.
Medical determination of disability may be made either by the Social Security Administration or by the provider of an accident or health plan covering employees of the Bank. Upon request of the Plan Administrator, the Executive must submit proof to
the Plan Administrator of the Social Security Administration’s or provider’s determination. 
 1.7 “Early
Termination” means Separation from Service before Normal Retirement Age for reasons other than death, Disability, or Termination for Cause. Early Termination excludes a termination governed by section 2.4.3. 
 1.8 “Effective Date” means January 1, 2008. 
 1.9 “Intentional,” for purposes of this Agreement, no act or failure to act on the Executive’s part shall be deemed to have been intentional if it was due primarily to an error in judgment
or negligence. An act or failure to act on the Executive’s part shall be considered intentional if it is not in good faith and if it is without a reasonable belief that the action or failure to act is in the Bank’s best interests.

 1.10 “Normal Retirement Age” means the Executive’s 62
nd birthday. 
  

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 1.11 “Plan Administrator” or “Administrator” means the plan
administrator described in Article 8. 
 1.12 “Plan Year” means a twelve-month period commencing on January 1
and ending on December 31 of each year. The initial Plan Year shall commence on the effective date of this Agreement. 
 1.13
“Separation from Service” means the Executive’s service as an executive and independent contractor to the Bank and any member of a controlled group, as defined in Code section 414, terminates for any reason, other than
because of a leave of absence approved by the Bank or the Executive’s death. For purposes of this Agreement, if there is a dispute about the employment status of the Executive or the date of the Executive’s Separation from Service, the
Bank shall have the sole and absolute right to decide the dispute unless a Change in Control shall have occurred. 
 1.14
“Termination with Cause” and “Cause” shall have the same meaning specified in any effective severance or employment agreement existing on the date hereof or hereafter entered into between the Executive and the
Bank. If the Executive is not a party to a severance or employment agreement containing a definition of termination with cause, Termination with Cause means the Bank terminates the Executive’s employment for any of the following reasons –

 (a) the Executive’s gross negligence or gross neglect of duties or intentional and material failure to perform stated duties after
written notice thereof, or 
 (b) disloyalty or dishonesty by the Executive in the performance of the Executive’s duties, or a breach of
the Executive’s fiduciary duties for personal profit, in any case whether in the Executive’s capacity as a director or officer, or 
 (c) intentional wrongful damage by the Executive to the business or property of the Bank or its affiliates, including without limitation the reputation of the Bank, which in the judgement of the Bank causes material harm to the Bank or
affiliates, or 
 (d) a willful violation by the Executive of any applicable law or significant policy of the Bank or an affiliate that, in
the Bank’s judgement, results in an adverse effect on the Bank or the affiliate, regardless of whether the violation leads to criminal prosecution or conviction. For purposes of this Agreement applicable laws include any statute, rule,
regulatory order, statement of policy, or final cease-and-desist order of any governmental agency or body having regulatory authority over the Bank, or 
 (e) the occurrence of any event that results in the Executive being excluded from coverage, or having coverage limited for the Executive as compared to other executives of the Bank, under the Bank’s blanket bond
or other fidelity or insurance policy covering its directors, officers, or employees, or 
 (f) the Executive is removed from office or
permanently prohibited from participating in the Bank’s affairs by an order issued under section 8(e)(4) or section 8(g)(1) of the Federal Deposit Insurance Act, 12 U.S.C. 1818(e)(4) or (g)(1), or 
 (g) conviction of the Executive for or plea of no contest to a felony or conviction of or plea of no contest to a misdemeanor involving moral turpitude,
or the actual incarceration of the Executive for 45 consecutive days or more. 
  

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 ARTICLE 2 
 LIFETIME BENEFITS 
 2.1 Normal Retirement.
Unless Separation from Service or a Change in Control occurs before Normal Retirement Age, when the Executive attains Normal Retirement Age the Bank shall pay to the Executive the benefit described in this section 2.1 instead of any other benefit
under this Agreement. If the Executive’s Separation from Service thereafter is a Termination with Cause or if this Agreement terminates under Article 5, no further benefits shall be paid. 
 2.1.1 Amount of benefit. The annual benefit under this section 2.1 is $144,000. Beginning one year after payment of the benefit under this section
2.1 begins, the amount of the annual benefit shall be increased annually at a rate of 3% to offset inflation. 
 2.1.2 Payment of
benefit. Beginning with the month immediately after the month in which the Executive attains Normal Retirement Age, the Bank shall pay the annual benefit to the Executive in equal monthly installments on the first day of each month. The annual
benefit shall be paid to the Executive for 15 years. 
 2.2 Early Termination. Unless the Executive shall have received the benefit
under section 2.4 after a Change in Control, after Early Termination the Bank shall pay to the Executive the benefit described in this section 2.2 instead of any other benefit under this Agreement. 
 2.2.1 Amount of benefit. The annual benefit under this section 2.2 is the Early Termination annual benefit set forth on Schedule A for the Plan
Year ended immediately before the Plan Year in which Separation from Service occurs, or the Early Termination annual benefit set forth on Schedule A for the Plan Year in which Separation from Service occurs if Separation from Service occurs
precisely on the last day of a Plan Year. For a Separation from Service that occurs during a Plan Year rather than at the end of a Plan Year, the annual benefit shall be pro rated to take into account full months of service during the final, partial
Plan Year, multiplying by one-twelfth the difference between (x) the Early Termination annual benefit set forth on Schedule A for the end of the Plan Year in which Separation from Service occurs and (y) the Early Termination
annual benefit set forth on Schedule A for the end of the Plan Year immediately before the Plan Year in which Separation from Service occurs, and multiplying that product by the number of full months of service completed by the Executive in the Plan
Year in which Separation from Service occurs. For a Separation from Service that occurs during a Plan Year rather than at the end of a Plan Year, that pro rated annual benefit for the Executive’s final, partial year of service shall be added to
the Early Termination annual benefit set forth on Schedule A for the Plan Year ended immediately before the Plan Year in which Separation from Service occurs, and the result shall be the Executive’s annual benefit under this section 2.2.
Beginning one year after payment of the benefit under this section 2.2 begins, the amount of the annual benefit shall be increased annually at a rate of 3% to offset inflation. 
 2.2.2 Payment of benefit. Beginning with the later of (x) the seventh month after the month in which the Executive’s Separation
from Service occurs, or (y) the month immediately after the month in which the Executive attains Normal Retirement Age, the Bank shall pay the annual benefit to the Executive in equal monthly installments on the first day of each month.
The annual benefit shall be paid to the Executive for 15 years. 
 2.3 Disability. Unless the Executive shall have received the
benefit under section 2.4 after a Change in Control, for Separation from Service because of Disability before Normal Retirement Age the Bank shall pay to the Executive the benefit described in this section 2.3 instead of any other benefit under this
Agreement. 
  

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 2.3.1 Amount of benefit. The annual benefit under this section 2.3 is the Disability annual
benefit set forth on Schedule A for the Plan Year ended immediately before the Plan Year in which Separation from Service occurs, or the Disability annual benefit set forth on Schedule A for the Plan Year in which Separation from Service occurs if
Separation from Service occurs precisely on the last day of a Plan Year. For a Separation from Service that occurs during a Plan Year rather than at the end of a Plan Year, the annual benefit shall be pro rated to take into account full months of
service during the final, partial Plan Year, multiplying by one-twelfth the difference between (x) the Disability annual benefit set forth on Schedule A for the end of the Plan Year in which Separation from Service occurs and
(y) the Disability annual benefit set forth on Schedule A for the end of the Plan Year immediately before the Plan Year in which Separation from Service occurs, and multiplying that product by the number of full months of service
completed by the Executive in the Plan Year in which Separation from Service occurs. For a Separation from Service that occurs during a Plan Year rather than at the end of a Plan Year, that pro rated annual benefit for the Executive’s final,
partial year of service shall be added to the Disability annual benefit set forth on Schedule A for the Plan Year ended immediately before the Plan Year in which Separation from Service occurs, and the result shall be the Executive’s annual
benefit under this section 2.3. Beginning one year after payment of the benefit under this section 2.3 begins, the amount of the annual benefit shall be increased annually at a rate of 3% to offset inflation. 
 2.3.2 Payment of benefit. Beginning with the later of (x) the seventh month after the month in which the Executive’s Separation
from Service occurs, or (y) the month immediately after the month in which the Executive attains Normal Retirement Age, the Bank shall pay the Disability benefit to the Executive in equal monthly installments on the first day of each
month. The annual benefit shall be paid to the Executive for 15 years. 
 2.4 Change in Control. If a Change in Control occurs both
before Normal Retirement Age and before Separation from Service, the Bank shall pay to the Executive the benefit described in this section 2.4 instead of any other benefit under this Agreement. 
 2.4.1 Amount of benefit. The benefit under this section 2.4 is the greater of (x) $400,000 or (y) the Accrual Balance when
the Change in Control occurs, in either case without reduction for the time value of money or other discount. 
 2.4.2 Payment of
benefit. The Bank shall pay the benefit under this section 2.4 to the Executive in a single lump sum within three days after the Change in Control. If the Executive receives the benefit under this section 2.4 because of the occurrence of a
Change in Control, the Executive shall not be entitled to claim additional benefits under section 2.4 if an additional Change in Control occurs thereafter. 
 2.4.3 Preservation of the Change-in-Control benefit if the Executive is preemptively terminated without Cause. If the Executive is involuntarily terminated without Cause after a Change in Control is announced
but before the Change in Control occurs, the Executive shall be entitled to the benefit under this section 2.4 instead of any other benefit under this Agreement and shall be deemed to have been terminated after the Change in Control occurred. The
Bank shall pay the Change-in-Control benefit to the Executive in a single lump sum within three days after the Executive’s Separation from Service; provided, however, that if payment is required by Code section 409A to be delayed
the Change-in-Control benefit shall instead be paid in a single lump sum on the first day of the seventh month after the month in which the Executive’s Separation from Service occurs, with interest. A Change in Control shall be considered to
have been announced on the date a press release is issued concerning the Change in Control, on the date a Form 8-K Current Report is filed with the Securities and Exchange Commission to report the Change in Control 

  

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event, on the date an annual or quarterly report or proxy statement is filed with the Securities and Exchange Commission disclosing the Change in Control
event, or on the date information concerning the Change in Control is publicly disseminated by the Bank in any other manner, whichever first occurs. 
 2.5 Lump-sum Payment of Normal Retirement Benefit, Early Termination Benefit, or Disability Benefit Being Paid to the Executive when a Change in Control Occurs. If when a Change in Control occurs the Executive
is receiving the Normal Retirement Age benefit under section 2.1, the Bank shall pay the remaining salary continuation benefits to the Executive in a single lump sum within three days after the Change in Control. If when a Change in Control occurs
the Executive is receiving or is entitled at Normal Retirement Age to receive the benefit under sections 2.2 or 2.3, the Bank shall pay the remaining salary continuation benefits to the Executive in a single lump sum within three days after the
later of (x) the date of the Change in Control or (y) the first day of the seventh month after the month in which the Executive’s Separation from Service occurs. The lump-sum payment due to the Executive as a result of a
Change in Control shall be an amount equal to the Accrual Balance amount corresponding to the particular benefit when the Change in Control occurs. 
 2.6 Contradiction Between this Agreement and Schedule A. If there is a contradiction between this Agreement and Schedule A attached hereto concerning the amount of a particular benefit due the Executive, the amount of the benefit
determined under this Agreement shall control. 
 2.7 Savings Clause Relating to Compliance with Code Section 409A. Despite any
contrary provision of this Agreement, if when the Executive’s employment terminates the Executive is a specified employee, as defined in Code section 409A, and if any payments under Article 2 of this Agreement will result in additional tax or
interest to the Executive because of section 409A, the Executive shall not be entitled to the payments under Article 2 until the earliest of (x) the date that is at least six months after termination of the Executive’s employment
for reasons other than the Executive’s death, (y) the date of the Executive’s death, or (z) any earlier date that does not result in additional tax or interest to the Executive under section 409A. If any provision
of this Agreement would subject the Executive to additional tax or interest under section 409A, the Bank shall reform the provision. However, the Bank shall maintain to the maximum extent practicable the original intent of the applicable provision
without subjecting the Executive to additional tax or interest, and the Bank shall not be required to incur any additional compensation expense as a result of the reformed provision. 
 2.8 One Benefit Only. Despite anything to the contrary in this Agreement, the Executive and Beneficiary are entitled to one benefit only under
this Agreement, which shall be determined by the first event to occur that is dealt with by this Agreement. Except as provided in section 2.5 or Article 3, subsequent occurrence of events dealt with by this Agreement shall not entitle the Executive
or Beneficiary to other or additional benefits under this Agreement. 
 ARTICLE 3 
 DEATH BENEFITS 
 3.1 Death Before Separation from Service. Except as provided in section 5.2, if the Executive dies before Separation from Service, at the Executive’s death the Beneficiary shall be entitled to an amount in cash equal to the
Accrual Balance existing at the Executive’s death, unless the Change-in-Control benefit shall have been paid to the Executive under section 2.4 or unless a Change-in-Control payout shall have occurred under section 2.5. No benefit shall be paid
if the Change-in-Control benefit shall have been paid to the Executive under section 2.4 or if a Change-in-Control payout shall have occurred under section 2.5. If a benefit is payable to the Beneficiary, the benefit shall be paid in a single lump
sum 90 days after the Executive’s death. However, no benefits under this Agreement shall be paid or payable to the Executive or the Beneficiary if this Agreement is terminated under Article 5. 
  

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 3.2 Death after Separation from Service. If the Executive dies after Separation from Service and
if Separation from Service was not a Termination with Cause, at the Executive’s death the Beneficiary shall be entitled to an amount in cash equal to the Accrual Balance remaining at the Executive’s death, unless the Change-in-Control
benefit shall have been paid to the Executive under section 2.4 or unless a Change-in-Control payout shall have occurred under section 2.5. No benefit shall be paid if the Change-in-Control benefit shall have been paid to the Executive under section
2.4 or if a Change-in-Control payout shall have occurred under section 2.5. If a benefit is payable to the Beneficiary under this section 3.2, the benefit shall be paid in a single lump sum 90 days after the Executive’s death. However, no
benefits under this Agreement shall be paid or payable to the Executive or the Beneficiary if this Agreement is terminated under Article 5. 
 ARTICLE 4 
 BENEFICIARIES 
 4.1 Beneficiary Designations. The Executive shall have the right to designate at any time a Beneficiary to receive any benefits payable under this
Agreement at the Executive’s death. The Beneficiary designated under this Agreement may be the same as or different from the beneficiary designation under any other benefit plan of the Bank in which the Executive participates. 
 4.2 Beneficiary Designation: Change. The Executive shall designate a Beneficiary by completing and signing the Beneficiary Designation Form
and delivering it to the Plan Administrator or its designated agent. The Executive’s Beneficiary designation shall be deemed automatically revoked if the Beneficiary predeceases the Executive or if the Executive names a spouse as Beneficiary
and the marriage is subsequently dissolved. The Executive shall have the right to change a Beneficiary by completing, signing, and otherwise complying with the terms of the Beneficiary Designation Form and the Plan Administrator’s rules and
procedures, as in effect from time to time. Upon acceptance by the Plan Administrator of a new Beneficiary Designation Form, all Beneficiary designations previously filed shall be cancelled. The Plan Administrator shall be entitled to rely on the
last Beneficiary Designation Form filed by the Executive and accepted by the Plan Administrator before the Executive’s death. 
 4.3
Acknowledgment. No designation or change in designation of a Beneficiary shall be effective until received, accepted, and acknowledged in writing by the Plan Administrator or its designated agent. 
 4.4 No Beneficiary Designation. If the Executive dies without a valid beneficiary designation or if all designated Beneficiaries predecease the
Executive, the Executive’s spouse shall be the designated Beneficiary. If the Executive has no surviving spouse the benefits shall be paid to the Executive’s estate. 
 4.5 Facility of Payment. If a benefit is payable to a minor, to a person declared incapacitated, or to a person incapable of handling the
disposition of his or her property, the Bank may pay the benefit to the guardian, legal representative, or person having the care or custody of the minor, incapacitated person, or incapable person. The Bank may require proof of incapacity, minority,
or guardianship as it may deem appropriate before distribution of the benefit. Distribution shall completely discharge the Bank from all liability for the benefit. 
 ARTICLE 5 
 GENERAL LIMITATIONS 
 5.1 Termination with Cause. Despite any contrary provision of this Agreement, the Bank shall not pay any benefit under this Agreement and this
Agreement shall terminate if Separation from Service is a Termination with Cause. 
  

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 5.2 Suicide or Misstatement. The Bank shall not pay any benefit under this Agreement if the
Executive commits suicide within two years after the date of this Agreement or if the Executive makes any material misstatement of fact on any application or resume provided to the Bank or on any application for benefits provided by the Bank.

 5.3 Removal. If the Executive is removed from office or permanently prohibited from participating in the Bank’s affairs by an
order issued under section 8(e)(4) or (g)(1) of the Federal Deposit Insurance Act, 12 U.S.C. 1818(e)(4) or (g)(1), all obligations of the Bank under this Agreement shall terminate as of the effective date of the order. 
 5.4 Default. Despite any contrary provision of this Agreement, if the Bank is in “default” or “in danger of default,” as those
terms are defined in section 3(x) of the Federal Deposit Insurance Act, 12 U.S.C. 1813(x), all obligations under this Agreement shall terminate. 
 5.5 FDIC Open-Bank Assistance. All obligations under this Agreement shall terminate, except to the extent determined that continuation of the contract is necessary for the continued operation of the Bank, when the Federal Deposit
Insurance Corporation enters into an agreement to provide assistance to or on behalf of the Bank under the authority contained in Federal Deposit Insurance Act section 13(c). 12 U.S.C. 1823(c). Rights of the parties that have already vested shall
not be affected by such action, however. 
 ARTICLE 6 
 CLAIMS AND REVIEW PROCEDURES 
 6.1 Claims Procedure. A person or beneficiary (“claimant”) who has not received benefits under this Agreement that he or she believes should be paid shall make a claim for such benefits as follows
– 
 6.1.1 Initiation – written claim. The claimant initiates a claim by submitting to the Administrator a
written claim for the benefits. If the claim relates to the contents of a notice received by the claimant, the claim must be made within 60 days after the notice was received by the claimant. All other claims must be made within 180 days after the
date of the event that caused the claim to arise. The claim must state with particularity the determination desired by the claimant. 
 6.1.2 Timing of Bank response. The Bank shall respond to the claimant within 90 days after receiving the claim. If the Bank determines that special circumstances require additional time for processing the claim, the Bank may extend
the response period by an additional 90 days by notifying the claimant in writing before the end of the initial 90-day period that an additional period is required. The notice of extension must state the special circumstances and the date by which
the Bank expects to render its decision. 
 6.1.3 Notice of decision. If the Bank denies part or all of the claim, the
Bank shall notify the claimant in writing of the denial. The Bank shall write the notification in a manner calculated to be understood by the claimant. The notification shall set forth – 
  

							
	 6.1.3.1
	  	 the specific reasons for the denial,

		
	 6.1.3.2
	  	 a reference to the specific provisions of the Agreement on which the denial is based,

  

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	 6.1.3.3
	  	 a description of any additional information or material necessary for the claimant to perfect the claim and an explanation of why it is
needed,

		
	 6.1.3.4
	  	 an explanation of the Agreement’s review procedures and the time limits applicable to such procedures, and

		
	 6.1.3.5
	  	 a statement of the claimant’s right to bring a civil action under ERISA section 502(a) following an adverse benefit determination on
review.

 6.2 Review Procedure. If the Bank denies part or all of the claim, the claimant shall have
the opportunity for a full and fair review by the Bank of the denial, as follows – 
 6.2.1 Initiation – written
request. To initiate the review, the claimant, within 60 days after receiving the Bank’s notice of denial, must file with the Bank a written request for review. 
 6.2.2 Additional submissions – information access. The claimant shall then have the opportunity to submit written comments,
documents, records, and other information relating to the claim. The Bank shall also provide the claimant, upon request and free of charge, reasonable access to and copies of all documents, records, and other information relevant (as defined in
applicable ERISA regulations) to the claimant’s claim for benefits. 
 6.2.3 Considerations on review. In
considering the review, the Bank shall take into account all materials and information the claimant submits relating to the claim, without regard to whether the information was submitted or considered in the initial benefit determination.

 6.2.4 Timing of Bank response. The Bank shall respond in writing to the claimant within 60 days after receiving the
request for review. If the Bank determines that special circumstances require additional time for processing the claim, the Bank may extend the response period by an additional 60 days by notifying the claimant in writing before the end of the
initial 60-day period that an additional period is required. The notice of extension must state the special circumstances and the date by which the Bank expects to render its decision. 
 6.2.5 Notice of decision. The Bank shall notify the claimant in writing of its decision on review. The Bank shall write the
notification in a manner calculated to be understood by the claimant. The notification shall set forth – 
  

			
	 6.2.5.1
	  	 the specific reason for the denial,

		
	 6.2.5.2
	  	 a reference to the specific provisions of the Agreement on which the denial is based,

		
	 6.2.5.3
	  	 a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to and copies of all documents,
records, and other information relevant (as defined in applicable ERISA regulations) to the claimant’s claim for benefits, and

		
	 6.2.5.4
	  	 a statement of the claimant’s right to bring a civil action under ERISA section 502(a).

 ARTICLE 7 
 MISCELLANEOUS 
 7.1 Amendments and Termination. Subject to
section 7.15, this Agreement may be amended solely by a written agreement signed by the Bank and by the Executive, and except for termination occurring under Article 5 this Agreement may be terminated solely by a written agreement signed by the Bank
and by the Executive. 
  

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 7.2 Binding Effect. This Agreement shall bind the Executive, the Bank, and their beneficiaries,
survivors, executors, successors, administrators, and transferees. 
 7.3 No Guarantee of Employment. This Agreement is not an
employment policy or contract. It does not give the Executive the right to remain an employee of the Bank nor does it interfere with the Bank’s right to discharge the Executive. It also does not require the Executive to remain an employee or
interfere with the Executive’s right to terminate employment at any time. 
 7.4 Non-Transferability. Benefits under this
Agreement may not be sold, transferred, assigned, pledged, attached, or encumbered. 
 7.5 Successors; Binding Agreement. By an
assumption agreement in form and substance satisfactory to the Executive, the Bank shall require any successor (whether direct or indirect, by purchase, merger, consolidation, or otherwise) to all or substantially all of the business or assets of
the Bank to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Bank would be required to perform this Agreement had no succession occurred. 
 7.6 Tax Withholding. The Bank shall withhold any taxes that are required to be withheld from the benefits provided under this Agreement.

 7.7 Applicable Law. This Agreement and all rights hereunder shall be governed by the laws of the State of North Carolina, except to
the extent preempted by the laws of the United States of America. 
 7.8 Unfunded Arrangement. The Executive and Beneficiary are
general unsecured creditors of the Bank for the payment of benefits under this Agreement. The benefits represent the mere promise by the Bank to pay benefits. Rights to benefits are not subject to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, attachment, or garnishment by creditors. Any insurance on the Executive’s life is a general asset of the Bank to which the Executive and Beneficiary have no preferred or secured claim. 
 7.9 Entire Agreement. This Agreement constitutes the entire agreement between the Bank and the Executive concerning the subject matter. No rights
are granted to the Executive under this Agreement other than those specifically set forth. 
 7.10 Severability. If any provision of
this Agreement is held invalid, such invalidity shall not affect any other provision of this Agreement not held invalid, and each such other provision shall continue in full force and effect to the full extent consistent with law. If any provision
of this Agreement is held invalid in part, such invalidity shall not affect the remainder of the provision not held invalid, and the remainder of such provision together with all other provisions of this Agreement shall continue in full force and
effect to the full extent consistent with law. 
 7.11 Headings. Caption headings and subheadings herein are included solely for
convenience of reference and shall not affect the meaning or interpretation of any provision of this Agreement. 
 7.12 Notices. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if delivered by hand or mailed, certified or registered mail,
return receipt requested, with postage prepaid, to the following addresses or to such other address as either party may designate by like notice. If to the Bank, notice shall be given to the board of directors, Mountain 1st Bank & Trust Company, 101 Jack Street, Hendersonville, North Carolina 28792, or to such 

  

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other or additional person or persons as the Bank shall have designated to the Executive in writing. If to the Executive, notice shall be given to the
Executive at the Executive’s address appearing on the Bank’s records, or to such other or additional person or persons as the Executive shall have designated to the Bank in writing. 
 7.13 Payment of Legal Fees. The Bank is aware that after a Change in Control management of the Bank could cause or attempt to cause the Bank to
refuse to comply with its obligations under this Agreement, or could institute or cause or attempt to cause the Bank to institute litigation seeking to have this Agreement declared unenforceable, or could take or attempt to take other action to deny
Executive the benefits intended under this Agreement. In these circumstances the purpose of this Agreement would be frustrated. The Bank intends that the Executive not be required to incur expenses associated with the enforcement of rights under
this Agreement, whether by litigation or other legal action, because the cost and expense thereof would substantially detract from the benefits intended to be granted to the Executive hereunder. The Bank intends that the Executive not be forced to
negotiate settlement of rights under this Agreement under threat of incurring expenses. Accordingly, if after a Change in Control occurs it appears to the Executive that (x) the Bank has failed to comply with any of its obligations under
this Agreement, or (y) the Bank or any other person has taken any action to declare this Agreement void or unenforceable, or instituted any litigation or other legal action designed to deny, diminish, or recover from the Executive the
benefits intended to be provided to the Executive hereunder, the Bank irrevocably authorizes the Executive from time to time to retain counsel of the Executive’s choice, at the Bank’s expense as provided in this section 7.13, to represent
the Executive in the initiation or defense of any litigation or other legal action, whether by or against the Bank or any director, officer, stockholder, or other person affiliated with the Bank, in any jurisdiction. Despite any existing or previous
attorney-client relationship between the Bank and any counsel chosen by the Executive under this section 7.13, the Bank irrevocably consents to the Executive entering into an attorney-client relationship with that counsel, and the Bank and the
Executive agree that a confidential relationship shall exist between the Executive and that counsel. The fees and expenses of counsel selected from time to time by the Executive as provided in this section shall be paid or reimbursed to the
Executive by the Bank on a regular, periodic basis upon presentation by the Executive of a statement or statements prepared by counsel in accordance with counsel’s customary practices, up to a maximum aggregate amount of $500,000, whether suit
be brought or not and regardless of whether incurred in trial, bankruptcy, or appellate proceedings. The Bank’s obligation to pay the Executive’s legal fees provided by this section 7.13 operates separately from and in addition to any
legal fee reimbursement obligation the Bank may have with the Executive under any separate employment, severance, or other agreement between the Executive and the Bank. Despite any contrary provision within this Agreement however, the Bank shall not
be required to pay or reimburse the Executive’s legal expenses if doing so would violate section 18(k) of the Federal Deposit Insurance Act [12 U.S.C. 1828(k)] and Rule 359.3 of the Federal Deposit Insurance Corporation [12 CFR 359.3].

 7.14 Internal Revenue Code Section 280G Gross Up. (a) Additional Payment to account for Excise Taxes. If as the
result of a Change in Control the Executive becomes entitled to acceleration of benefits under this Agreement or under any other plan or agreement of or with the Bank or its affiliates (together, the “Total Benefits”), and if any of the
Total Benefits will be subject to the Excise Tax as set forth in Code sections 280G and 4999 (the “Excise Tax”), the Bank shall pay to the Executive the following additional amount, consisting of a percentage of the sum of
(x) a payment equal to the Excise Tax payable by the Executive on the Total Benefits under Code section 4999 (the “Excise Tax Payment”) plus (y) a payment equal to the amount necessary to provide the Excise Tax
Payment net of all income, payroll and excise taxes. The applicable percentage of the sum of clauses (x) and (y) is referred to in this Agreement as the “Gross-Up Payment Amount.” The applicable percentage Gross-Up
Payment Amount to which the Executive is entitled is 33% for a Change in Control occurring in 2009, 66% for a Change in Control occurring in 2010, and 100% for a Change in Control occurring in 2011 or thereafter. The Executive shall be entitled to
no Gross-Up Payment Amount whatsoever for a Change in Control occurring before 2009. 
  

 11 

 Calculating the Excise Tax. For purposes of determining whether any of the Total Benefits will be
subject to the Excise Tax and for purposes of determining the amount of the Excise Tax, 
  

	 	1)	Determination of “parachute payments” subject to the Excise Tax: any other payments or benefits received or to be received by the Executive in connection with a
Change in Control or the Executive’s Separation from Service (whether under the terms of this Agreement or any other agreement or any other benefit plan or arrangement with the Bank, any person whose actions result in a Change in Control, or
any person affiliated with the Bank or such person) shall be treated as “parachute payments” within the meaning of Code section 280G(b)(2), and all “excess parachute payments” within the meaning of section 280G(b)(1) shall be
treated as subject to the Excise Tax, unless in the opinion of the certified public accounting firm that is retained by the Bank as of the date immediately before the Change in Control (the “Accounting Firm”) such other payments or
benefits do not constitute (in whole or in part) parachute payments, or such excess parachute payments represent (in whole or in part) reasonable compensation for services actually rendered within the meaning of Code section 280G(b)(4) in excess of
the base amount (as defined in section 280G(b)(3)), or are otherwise not subject to the Excise Tax, 

  

	 	2)	Calculation of benefits subject to the Excise Tax: the amount of the Total Benefits that shall be treated as subject to the Excise Tax shall be equal to the lesser of
(x) the total amount of the Total Benefits reduced by the amount of such Total Benefits that in the opinion of the Accounting Firm are not parachute payments, or (y) the amount of excess parachute payments within the meaning
of section 280G(b)(1) (after applying clause (1), above), and 

  

	 	3)	Value of noncash benefits and deferred payments: the value of any noncash benefits or any deferred payment or benefit shall be determined by the Accounting Firm in accordance
with the principles of Code sections 280G(d)(3) and (4). 

 Assumed Marginal Income Tax Rate. For purposes of
determining the amount of the Gross-Up Payment Amount, the Executive shall be deemed to pay federal income taxes at the highest marginal rate of federal income taxation in the calendar years in which the Gross-Up Payment Amount is to be made and
state and local income taxes at the highest marginal rate of taxation in the state and locality of the Executive’s residence on the date of Separation from Service, net of the reduction in federal income taxes that can be obtained from
deduction of state and local taxes (calculated by assuming that any reduction under Code section 68 in the amount of itemized deductions allowable to the Executive applies first to reduce the amount of state and local income taxes that would
otherwise be deductible by the Executive, and applicable federal FICA and Medicare withholding taxes). 
 Return of Reduced Excise Tax
Payment or Payment of Additional Excise Tax. If the Excise Tax is later determined to be less than the amount taken into account hereunder when the Executive’s employment terminated, the Executive shall repay to the Bank – when the
amount of the reduction in Excise Tax is finally determined – the portion of the Gross-Up Payment Amount attributable to the reduction (plus that portion of the Gross-Up Payment Amount attributable to the Excise Tax, federal, state and local
income taxes and FICA and Medicare withholding taxes imposed on the Gross-Up Payment Amount being repaid by the Executive to the extent that the repayment results in a reduction in Excise Tax, FICA, and Medicare withholding taxes and/or a federal,
state, or local income tax deduction). 
 If the Excise Tax is later determined to be more than the amount taken into account hereunder when
the Executive’s employment terminated (due, for example, to a payment whose existence or amount cannot be determined at the time of the Gross-Up Payment Amount), the Bank shall make an additional Gross-Up Payment Amount to the Executive for
that excess (plus any interest, penalties, or additions payable by the Executive for the excess) when the amount of the excess is finally determined. 
  

 12 

 (b) Responsibilities of the Accounting Firm and the Bank. Determinations Shall Be Made by the
Accounting Firm. Subject to the provisions of section 7.14(a), all determinations required to be made under this section 7.14(b) – including whether and when a Gross-Up Payment Amount is required, the amount of the Gross-Up Payment Amount
and the assumptions to be used to arrive at the determination (collectively, the “Determination”) – shall be made by the Accounting Firm, which shall provide detailed supporting calculations both to the Bank and the Executive within
15 business days after receipt of notice from the Bank or the Executive that there has been a Gross-Up Payment Amount, or such earlier time as is requested by the Bank. 
 Fees and Expenses of the Accounting Firm and Agreement with the Accounting Firm. All fees and expenses of the Accounting Firm shall be borne solely by the Bank. The Bank shall enter into any agreement requested
by the Accounting Firm in connection with the performance of its services hereunder. 
 Accounting Firm’s Opinion. If the
Accounting Firm determines that no Excise Tax is payable by the Executive, the Accounting Firm shall furnish the Executive with a written opinion to that effect and to the effect that failure to report Excise Tax, if any, on the Executive’s
applicable federal income tax return will not result in the imposition of a negligence or similar penalty. 
 Accounting Firm’s
Determination Is Binding; Underpayment and Overpayment. The Determination by the Accounting Firm shall be binding on the Bank and the Executive. Because of the uncertainty when the Determination is made about whether any of the Total Benefits
will be subject to the Excise Tax, it is possible that a Gross-Up Payment Amount that should have been made will not have been made by the Bank (“Underpayment”), or that a Gross-Up Payment Amount will be made that should not have been made
by the Bank (“Overpayment”). If after a Determination by the Accounting Firm the Executive is required to make a payment of additional Excise Tax, the Accounting Firm shall determine the amount of the Underpayment. The Underpayment
(together with interest at the rate provided in Code section 1274(d)(2)(B)) shall be paid promptly by the Bank to or for the benefit of the Executive. If the Gross-Up Payment Amount exceeds the amount necessary to reimburse the Executive for the
Excise Tax according to section 7.14(a), the Accounting Firm shall determine the amount of the Overpayment. The Overpayment (together with interest at the rate provided in Code section 1274(d)(2)(B)) shall be paid promptly by the Executive to or for
the benefit of the Bank. Provided that the Executive’s expenses are reimbursed by the Bank, the Executive shall cooperate with any reasonable requests by the Bank in any contests or disputes with the Internal Revenue Service relating to the
Excise Tax. 
 Accounting Firm Conflict of Interest. If the Accounting Firm is serving as accountant or auditor for the individual,
entity, or group effecting the Change in Control, the Executive may appoint another nationally recognized public accounting firm to make the Determinations required hereunder (in which case the term “Accounting Firm” as used in this
Agreement shall be deemed to refer to the accounting firm appointed by the Executive). 
 7.15 Termination or Modification of Agreement
Because of Changes in Law, Rules or Regulations. The Bank is entering into this Agreement on the assumption that certain existing tax laws, rules, and regulations will continue in effect in their current form. If that assumption materially
changes and the change has a material detrimental effect on this Agreement, the Bank reserves the right to terminate or modify this Agreement accordingly, subject to the written consent of the Executive, which shall not be unreasonably withheld.
This section 7.15 shall become null and void effective immediately upon a Change in Control. 
  

 13 

 ARTICLE 8 
 ADMINISTRATION OF AGREEMENT 
 8.1 Plan Administrator Duties. This Agreement shall be administered by a Plan Administrator consisting of the Bank’s board of directors or such committee or person(s) as the board shall appoint. The Executive may not be a member
of the Plan Administrator. The Plan Administrator shall have the discretion and authority to (x) make, amend, interpret, and enforce all appropriate rules and regulations for the administration of this Agreement and
(y) decide or resolve any and all questions that may arise, including interpretations of this Agreement. 
 8.2 Agents. In
the administration of this Agreement, the Plan Administrator may employ agents and delegate to them such administrative duties as it sees fit (including acting through a duly appointed representative) and may from time to time consult with counsel,
who may be counsel to the Bank. 
 8.3 Binding Effect of Decisions. The decision or action of the Plan Administrator concerning any
question arising out of the administration, interpretation, and application of the Agreement and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in the Agreement. No
Executive or Beneficiary shall be deemed to have any right, vested or nonvested, regarding the continued use of any previously adopted assumptions, including but not limited to the discount rate and calculation method described in section 1.1.

 8.4 Indemnity of Plan Administrator. The Bank shall indemnify and hold harmless the members of the Plan Administrator against any
and all claims, losses, damages, expenses, or liabilities arising from any action or failure to act with respect to this Agreement, except in the case of willful misconduct by the Plan Administrator or any of its members. 
 8.5 Bank Information. To enable the Plan Administrator to perform its functions, the Bank shall supply full and timely information to the Plan
Administrator on all matters relating to the date and circumstances of the retirement, Disability, death, or Separation from Service of the Executive and such other pertinent information as the Plan Administrator may reasonably require. 

ARTICLE 9 
 AGREEMENT NOT TO COMPETE 
 9.1 Covenant Not to Compete.
(a) Without advance written consent of the Bank, the Executive shall not compete directly or indirectly with the Bank for one year after Separation from Service, plus any period during which the Executive is in violation of this covenant not to
compete and any period during which the Bank seeks by litigation to enforce this covenant not to compete. For purposes of this section – 
 1) the term “compete” means 
 (a) providing financial products or services on behalf of any financial
institution for any person residing in the territory, 
 (b) assisting (other than through the performance of ministerial or
clerical duties) any financial institution in providing financial products or services to any person residing in the territory, or 
  

 14 

 (c) inducing or attempting to induce any person who was a customer of the Bank at the
date of the Executive’s termination of employment to seek financial products or services from another financial institution. 
 2) the
words “directly or indirectly” means – 
 (a) acting as a consultant, officer, director, independent
contractor, or employee of any financial institution in competition with the Bank in the territory, or 
 (b) communicating to
such financial institution the names or addresses or any financial information concerning any person who was a customer of the Bank at the Executive’s Separation from Service. 
 3) the term “customer” means any person to whom the Bank is providing financial products or services on the date of the Executive’s
Separation from Service. 
 4) the term “financial institution” means any bank, savings association, or bank or savings association
holding company, or any other institution, the business of which is engaging in activities that are financial in nature or incidental to such financial activities as described in section 4(k) of the Bank Holding Company Act of 1956, other than the
Bank or one of its affiliated corporations. 
 5) “financial product or service” means any product or service that a financial
institution or a financial holding company could offer by engaging in any activity that is financial in nature or incidental to such a financial activity under section 4(k) of the Bank Holding Company Act of 1956 and that is offered by the Bank or
an affiliate on the date of the Executive’s Separation from Service, including but not limited to banking activities and activities that are closely related and a proper incident to banking. 
 6) the term “person” means any individual or individuals, corporation, partnership, fiduciary or association. 
 7) the term “territory” means all of the area within a 15-mile radius of any full-service banking office of the Bank at the date of the
Executive’s Separation from Service. 
 (b) If any provision of this section or any word, phrase, clause, sentence or other portion
thereof (including, without limitation, the geographical and temporal restrictions contained therein) is held to be unenforceable or invalid for any reason, the unenforceable or invalid provision or portion shall be modified or deleted so that the
provisions hereof, as modified, are legal and enforceable to the fullest extent permitted under applicable law. 
 9.2 Remedies.
Because of the unique character of the services to be rendered by the Executive hereunder, the Executive understands that the Bank would not have an adequate remedy at law for the material breach or threatened breach by the Executive of any one or
more of the Executive’s covenants set forth in this Article 9. Accordingly, the Executive agrees that the Bank’s remedies for a material breach or threatened breach of this Article 9 include but are not limited to forfeiture of benefits
under this Agreement and a suit in equity by the Bank to enjoin the Executive from the breach or threatened breach of such covenants. The Executive hereby waives the claim or defense that an adequate remedy at law is available to the Bank and the
Executive agrees not to urge in any such action the claim or defense that an adequate remedy at law exists. Nothing herein shall be construed to prohibit the Bank from pursuing any other remedies for the breach or threatened breach. 
  

 15 

 9.3 Article 9 Survives Termination But Is Void After a Change in Control. The rights and
obligations set forth in this Article 9 shall survive termination of this Agreement. However, Article 9 shall become null and void effective immediately upon a Change in Control. 
 IN WITNESS WHEREOF, the Executive and a duly authorized officer of the Bank have
executed this Salary Continuation Agreement as of the date first written above. 
  

							
	EXECUTIVE:	 		 	BANK:
		 		 	Mountain 1st Bank & Trust Company
				
	 /s/ Kirk P. Robinson
	 		 	By:	 	 /s/ Gregory L. Gibson

	Kirk P. Robinson	 		 	Its:	 	Chief Executive Officer
				
		 		 	And by: 	 	 /s/ Sherrie B. Rogers

		 		 	Its:	 	Corporate Secretary

  

 16 

 BENEFICIARY DESIGNATION 
 MOUNTAIN 1ST BANK & TRUST COMPANY 
 SALARY CONTINUATION AGREEMENT 
 I, Kirk P. Robinson, designate the following as beneficiary of any death benefits under this Salary Continuation Agreement – 
  

									
	 Primary:
	  	 Melissa L. Chapel
	 	
		
	  
	 	.
			
	 Contingent:
	  	 Kirk P. Robinson Living Trust
	 	
		
	  
	 	.

 Note: To name a trust as beneficiary, please provide the name of the trustee(s) and the exact
name and date of the trust agreement. 
 I understand that I may change these beneficiary designations by filing a new written
designation with the Bank. I further understand that the designations will be automatically revoked if the beneficiary predeceases me, or if I have named my spouse as beneficiary and our marriage is subsequently dissolved. 
  

							
	Signature:	 	 /s/ Kirk P. Robinson
	  		  	
		 	Kirk P. Robinson	  		  	
				
	Date:	 	March 26, 2008	  		  	

 Accepted by the Bank this 27th day of March, 2008 
  

									
	By:	 	 /s/ John S. Sheiry
	  		  	
	Print Name:     John S. Sheiry	  		  	
	Title:     Chairman - Governance Committee	  	

  

 17 

 SCHEDULE A 
 MOUNTAIN 1ST BANK & TRUST COMPANY 
 SALARY CONTINUATION AGREEMENT 
 Kirk P. Robinson 
  

																	
	 Plan Year
	  	Plan Year
ending
December 31,	  	Age at
Plan
Year
end	  	Accrual
Balance @
6.00% (1)	  	Early Termination
annual benefit
payable at Normal
Retirement Age (2)	  	Disability annual
benefit payable
at Normal
Retirement Age
(2)	  	Change-in-Control
benefit payable in a
lump sum
	 1
	  	2008	  	41	  	$	22,975	  	$	6,646	  	$	6,646	  	$	400,000
	 2
	  	2009	  	42	  	$	48,784	  	$	13,292	  	$	13,292	  	$	400,000
	 3
	  	2010	  	43	  	$	77,689	  	$	19,938	  	$	19,938	  	$	400,000
	 4
	  	2011	  	44	  	$	109,974	  	$	26,585	  	$	26,585	  	$	400,000
	 5
	  	2012	  	45	  	$	145,947	  	$	33,231	  	$	33,231	  	$	400,000
	 6
	  	2013	  	46	  	$	185,938	  	$	39,877	  	$	39,877	  	$	400,000
	 7
	  	2014	  	47	  	$	230,308	  	$	46,523	  	$	46,523	  	$	400,000
	 8
	  	2015	  	48	  	$	279,443	  	$	53,169	  	$	53,169	  	$	400,000
	 9
	  	2016	  	49	  	$	333,763	  	$	59,815	  	$	59,815	  	$	400,000
	 10
	  	2017	  	50	  	$	393,721	  	$	66,462	  	$	66,462	  	$	400,000
	 11
	  	2018	  	51	  	$	459,805	  	$	73,108	  	$	73,108	  	$	459,805
	 12
	  	2019	  	52	  	$	532,544	  	$	79,754	  	$	79,754	  	$	532,544
	 13
	  	2020	  	53	  	$	612,505	  	$	86,400	  	$	86,400	  	$	612,505
	 14
	  	2021	  	54	  	$	700,305	  	$	93,046	  	$	93,046	  	$	700,305
	 15
	  	2022	  	55	  	$	796,606	  	$	99,692	  	$	99,692	  	$	796,606
	 16
	  	2023	  	56	  	$	902,121	  	$	106,338	  	$	106,338	  	$	902,121
	 17
	  	2024	  	57	  	$	1,017,622	  	$	112,985	  	$	112,985	  	$	1,017,622
	 18
	  	2025	  	58	  	$	1,143,939	  	$	119,631	  	$	119,631	  	$	1,143,939
	 19
	  	2026	  	59	  	$	1,281,966	  	$	126,277	  	$	126,277	  	$	1,281,966
	 20
	  	2027	  	60	  	$	1,432,669	  	$	132,923	  	$	132,923	  	$	1,432,669
	 21
	  	2028	  	61	  	$	1,597,084	  	$	139,569	  	$	139,569	  	$	1,597,084
	 22
	  	August 2029	  	62	  	$	1,714,862	  	$	144,000	  	$	144,000	  	$	1,714,862

  

	(1)	Calculations are approximations. Benefit calculations are based on prior year-end accrual balances for illustrative purposes. The accrual balance reflects payment at the beginning
of each month. 

	(2)	The Early Termination and Disability annual benefit amounts shown assume that the Executive’s Separation from Service occurs precisely on the last day of the Plan Year. If
Separation from Service occurs during a Plan Year rather than at the end of a Plan Year, the annual benefit shall be pro rated to take into account full months of service during the final, partial Plan Year, multiplying by one-twelfth the difference
between (x) the annual benefit set forth on Schedule A for the end of the Plan Year in which Separation from Service occurs and (y) the annual benefit set forth on Schedule A for the end of the Plan Year immediately before
the Plan Year in which Separation from Service occurs, and multiplying that product by the number of full months of service completed by the Executive in the Plan Year in which Separation from Service occurs. That pro rated annual benefit for the
Executive’s final, partial year of service shall be added to the annual benefit set forth on Schedule A for the Plan Year ended immediately before the Plan Year in which Separation from Service occurs, and the result shall be the
Executive’s annual benefit. 

  

 18 

 The Early Termination and Disability benefits shown assume the Executive’s Separation from Service
occurs more than six months before the Executive’s Normal Retirement Age and that the Early Termination benefit and the Disability benefit therefore become payable beginning in the month after the Executive attains Normal Retirement Age. Under
sections 2.2.1 and 2.3.1 of the Agreement, the Early Termination and Disability benefit amounts increase annually by 3% to offset inflation, beginning one year after payment of the Early Termination or Disability benefit commences. 
 (3) The Executive attains Normal Retirement Age on August 7, 2029. The first monthly normal retirement benefit payment will be made on
September 1, 2029. 
 If there is a contradiction between the terms of the Agreement and Schedule A concerning the amount of a particular
benefit due the Executive under sections 2.2, 2.3, or 2.4 of the Agreement, the amount of the benefit determined under the Agreement shall control. 
  

 19Employee Stock Option Plan (as assumed by us from the Bank)

 EXHIBIT 10.17 
 MOUNTAIN 1ST BANK & TRUST COMPANY 
 EMPLOYEE STOCK OPTION PLAN 
 MOUNTAIN 1ST BANK & TRUST COMPANY (the “Bank”) hereby adopts this EMPLOYEE STOCK OPTION PLAN (the “Plan”)
as further described herein. 
 ARTICLE I 
 PURPOSE AND SCOPE OF PLAN 
  

	1.1	Purpose 

 The purpose of the Plan is to encourage
the continued service of officers and employees of the Bank, and to provide an additional incentive for such officers and employees to expand and improve the profits and prosperity of the Bank, by granting them options to purchase shares of the
Bank’s common stock. The Plan also will assist the Bank in recruiting and retaining persons to serve as officers and employees of the Bank. 
  

	1.2	Stock Subject to Plan 

 Pursuant to and in
accordance with the terms of the Plan, options (“Options”) may be granted from time to time to purchase shares of the Bank’s common stock, $5.00 par value per share (“Common Stock”). 
 The aggregate number of shares of Common Stock which may be sold upon the exercise of Options granted under the Plan is 162,500 shares, which maximum
number is subject to adjustment as provided in Paragraph 6.1 hereof. Shares of Common Stock sold by the Bank upon the exercise of Options granted hereunder, at the sole discretion of the Bank, may be issued from the Bank’s authorized but
unissued shares, or be issued and outstanding shares purchased by the Bank on the open market or in private transactions. In the event an Option granted under the Plan shall expire or terminate for any reason without having been exercised in full,
then, to the extent the Plan shall remain in effect, the shares covered by the unexercised portion of such Option shall again be available for the grant of Options under the Plan. 
  

	1.3	Effective Date 

 The Plan shall become effective as
of July 26, 2004 (the “Effective Date,” which is the date of adoption of the Plan by the Bank’s Board of Directors); provided, however, that notwithstanding anything contained herein to the contrary, the Plan shall be subject to
approval of the North Carolina Commissioner of Banks and other banking regulators to the extent required by law and to approval of the Bank’s shareholders by a vote of the holders of at least two-thirds of the outstanding shares of the
Bank’s Common Stock at a meeting of the Bank’s shareholders held in accordance with North Carolina law. Options may be granted pursuant to the Plan prior to receipt of such approvals, but any such Options granted shall be subject to, and
may not become exercisable until, receipt of such approvals. 
  

	1.4	Termination Date 

 Unless sooner terminated as
provided herein, the Plan shall terminate at 5:00 P.M. on July 26, 2014 (the “Termination Date”). Following the Termination Date, no further Options may be granted under the Plan, but such termination shall not effect any Option
granted prior to the Termination Date. 

 ARTICLE II 
 DEFINITIONS 
 2.1 Bank. “Bank” refers to Mountain 1st Bank & Trust Company and to any
successor to the Bank which shall have assumed or become liable for the Bank’s obligations pursuant to any Option granted or Option Agreement entered into pursuant to the Plan. 
 2.2 Board. “Board” refers to the Bank’s Board of Directors. 
 2.3 Committee.
“Committee” refers to the committee of and appointed or designated by the Board to administer the Plan as described in Article III below. 
 2.4
Common Stock. “Common Stock” refers to the common stock of the Bank, par value $5.00 per share. 
 2.5 Date of Grant. The “Date of
Grant” of an Option refers to the effective date of action by the Committee granting such Option. 
 2.6 Employee. “Employee” refers to
any person who is a full-time employee of the Bank. 
 2.7 Exercise Price. “Exercise Price” refers to the price per share to be paid by an
Optionee for the purchase of Option Stock upon the exercise of an Option. 
 2.8 Expiration Date. “Expiration Date” refers to the date set
by the Committee at which time any unexercised portion of an Option automatically will terminate and be of no further force or effect. 
 2.9
Modification, Extension or Renewal. “Modification” refers to any change in an Option which alters or modifies the original terms, conditions or benefits of the Option granted to the Optionee. “Extension” refers to the
granting to the Optionee of an additional period of time within which to exercise the Option beyond the Expiration Date originally prescribed in the Option Agreement. “Renewal” refers to the granting of an Option to the Optionee with the
same rights and privileges and on the same terms and conditions as contained in an original Option after expiration or termination of the original Option. 
 2.10 Non-Employee Director. “Non-Employee Director” refers to a member of the Board who satisfies the definition of that term contained in Rule 16b-3(b)(3) under the Securities Exchange Act of 1934, as such rule may be
amended from time to time. 
 2.11 Option. “Option” refers to a right granted to an Employee by the Bank pursuant to the Plan to purchase
shares of Common Stock at the Exercise Price set by the Committee for such Option and on the terms and conditions set forth herein and in the Option Agreement relating to such Option. 
 2.12 Option Agreement. “Option Agreement” refers to a formal written agreement executed between the Bank and an Optionee setting forth the terms and conditions of an Option. 
 2.13 Option Stock. “Option Stock” refers to the shares of Common Stock covered by an Option and which may be purchased by the Optionee upon the
exercise, in whole or in part, of such Option. 
 2.14 Optionee. “Optionee” refers to an Employee to whom an Option is granted pursuant to
the Plan. 
 2.15 Regulatory Authority. “Regulatory Authority” refers to any governmental agency or authority having jurisdiction over the
Bank, including but not limited to the Federal Deposit Insurance Corporation, the North Carolina Banking Commissioner, the North Carolina State Banking Commission, and the Federal Reserve Board. 

 ARTICLE III 
 PLAN ADMINISTRATION 
  

	3.1	General 

 The Plan shall be administered by a
Committee which shall be composed solely of two or more Non-Employee Directors. Members of the Committee shall serve at the pleasure of the Board, and the Board, from time to time and at its discretion, may remove members from (with or
without cause) or add members to the Committee or fill any vacancies on the Committee, however created. Alternatively, the Board may, by resolution, elect that the Plan be administered by the full Board rather than a Committee. During any such time
as the Board shall administer the Plan, all references herein to the “Committee” shall be deemed to refer to the Board and all actions taken by the Board in the administration of the Plan shall be taken in the form of resolutions approved
by the Board. 
  

	3.2	Duties 

 In its administration of the Plan, the
Committee shall have the authority, power and duty: 
  

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

  

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

  

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

  

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

  

	(e)	to determine: 

  

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

  

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

  

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

  

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

  

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

 

 2 

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

  

	3.3	Meetings and Voting 

 The Committee shall select one
of its members as Chairman and shall hold meetings at such times and places as it shall deem necessary or desirable. A majority of the members of the Committee shall constitute a quorum for all matters with respect to administration of the Plan, and
acts of a majority of the members of the Committee present at meetings at which a quorum is present, or acts reduced to and approved in writing by all of the members of the Committee without a meeting, shall be valid acts of the Committee.

  

	3.4	Choice of Form of Option 

 The Committee shall have
the discretion to cause any Option granted pursuant to the Plan to be granted with the intent that it qualify for treatment as an “Incentive Stock Option” (an “ISO”) as defined in §422 of the Internal Revenue Code of 1986,
as amended (the “Code”), or with the intent that it be treated as a “Nonqualified Stock Option” (an “NSO”). ISOs and NSOs shall collectively be referred to herein as “Options” unless reference is specifically
made only to one or the other, and, in the case of any such reference only to one, such reference shall be deemed to be made to the exclusion of the other. 
  

	3.5	Effect of Committee Action 

 All actions, decisions
and determinations of the Committee in connection with the grant of Options or the administration, interpretation or construction of, or questions or other matters concerning, the Plan or any Option granted, shall (i) be made consistent
and in accordance with the terms of the Plan and, with respect to an ISO, shall be designed to cause the Plan and each such ISO to continue to comply with applicable provisions of the Code, and (ii) shall be final, conclusive and binding
on all persons, including the Bank, its shareholders, Optionees and any other person claiming any interest in any Option. However, notwithstanding anything contained in the Plan to the contrary, any action, decision, interpretation or determination,
other than those respecting the actual grant of Options, shall be subject to review by the Board of Directors either on its own initiative, at the request of the Committee or on application of any aggrieved party. Also, the Committee itself may
specify that any action taken by it be subject to review and approval by the Board of Directors. In any such case, the determination of the Board of Directors on such review shall be final and binding on all affected parties. 
  

	3.6	Indemnification 

 To the extent permitted by
applicable law, and in addition to such other rights of indemnification that members of the Committee may have as Directors of the Bank, the members of the Committee shall be indemnified by the Bank against the reasonable expenses, including
attorneys’ fees, actually and necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal thereof, to which they or any of them may be made a party by reason of any action taken or
omitted in good faith under or in connection with administration of the Plan or any Option granted hereunder and against all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by
the Bank) or paid by them in satisfaction of a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that any such Committee member is liable for gross
negligence or misconduct in the performance of his duties; provided, however, that within thirty (30) days after institution of any such action, suit or proceeding, such Committee member(s) shall in writing offer the Bank the opportunity, at
its own expense, to handle and defend same. 
  

 3 

 ARTICLE IV 
 GRANT AND TERMS OF OPTIONS 
  

	4.1	Authorization to Grant Options 

 Pursuant to the
Plan, from time to time prior to the Termination Date the Bank may grant Options to Employees to purchase shares of Common Stock. Options may only be granted by action of the Committee, and no person shall have any rights under the Plan or with
respect to any Option except pursuant to such action of the Committee. 
  

	4.2	Number of Shares 

 The number of shares of Option
Stock covered by each Option shall be set by the Committee at the time such Option is granted and shall be specified in the Option Agreement evidencing such Option; provided, however, that the number of shares of Option Stock covered by Options
granted from time to time to any one Employee under the Plan may not exceed 40% of the aggregate number of shares of Common Stock originally available for the grant of Options under the Plan from time to time. The number of shares of Option Stock
covered by each Option shall be subject to adjustment in the manner described in Paragraph 6.1 below. 
  

	4.3	Exercise Price 

 At the time an Option is granted,
the Committee shall set the Exercise Price applicable to such Option. The Exercise Price shall be determined by the Committee in the manner described below and shall be specified in the Option Agreement evidencing the Option. The Exercise Price
applicable to each Option shall be subject to adjustment in the manner described in Paragraph 6.1 below. 
 The Exercise Price for each share
of Option Stock covered by an Option shall not be less than one hundred percent (100%) of the fair market value of one share of the Common Stock on the Date of Grant of such Option (the “Fair Market Value”). The Fair Market Value on
any particular date shall be, (i) if the Common Stock is not then listed on the Nasdaq Stock Market, the fair market value of a share of the Common Stock as determined by the Committee in its sole discretion in such manner as it shall
deem to be reasonable and appropriate, or, (ii) if the Common Stock is listed on the Nasdaq Stock Market, the average of the bid and asked prices for a share of the Common Stock as quoted by Nasdaq on such date.
  

	4.4	Option Agreements 

 Each Option granted under the
Plan shall be evidenced by an Option Agreement which shall be executed and delivered by the Optionee and by or on behalf of the Bank and which shall (i) specify whether such Option is intended to be an ISO or an NSO,
(ii) contain such other information as is provided or permitted herein to be contained in the Option Agreement, and (iii) not contain any provisions inconsistent with the Plan. Following the execution of an Option Agreement
evidencing an Option, such Option shall be effective as of the Date of Grant of such Option. 
  

	4.5	Limits on Grant of ISOs 

 Notwithstanding anything
contained herein to the contrary: 
  

	(a)	 in the case of an ISO granted to an Employee who owns, immediately before the ISO is granted, more than ten percent (10%) of the total combined voting
power of all classes of Common Stock of 

  

 4 

	 	 
the Bank, the Exercise Price per share with respect to such ISO, as determined by the Committee and stated in the Option Agreement, shall not be less than
one hundred ten percent (110%) of the Fair Market Value as of the Date of Grant of the ISO; and, 

  

	(b)	the aggregate Fair Market Value (determined as of the Date of Grant of the Option) of the Option Stock for which an Optionee may be granted ISOs exercisable for the first
time in any calendar year (including ISOs granted under all option plans of the Bank) shall not exceed $100,000. This $100,000 limitation shall not apply to the grant of NSOs. For purposes of this Section 4.5, an Optionee shall be deemed an
owner of Common Stock owned by the Optionee’s spouse, siblings, ancestors and lineal descendants. 

 ARTICLE V

 EXERCISE OF OPTIONS 
  

	5.1	Waiting Period 

 No Option may be exercised unless
and until the Optionee shall have completed six months (or such other or longer period as shall be determined by the Committee and specified in the Option Agreement evidencing that Option) of continuous, full time service in the employment of the
Bank following the Date of Grant of the Option, but thereafter, subject to earlier termination as described herein, may be exercised as provided herein and in the Option Agreement evidencing such Option. The waiting period provided herein shall not
operate to extend the Expiration Date or other date of termination of an Option set forth or provided for herein or in the Option Agreement evidencing such Option. 
  

	5.2	Term; Conditions on Exercise; Expiration or Termination 

 The Expiration Date of each Option shall be set by the Committee at the time the Option is granted and shall be specified in the Option Agreement evidencing the Option, but in no event shall be more than ten years following the Date of
Grant of the Option. However, notwithstanding any thing contained herein to the contrary, in the case of an ISO granted to an Employee who owns, immediately before the ISO is granted, more than ten percent (10%) of the total combined voting
power of all classes of Common Stock of the Bank, the Expiration Date shall not be more than 5 years following the Date of Grant of the ISO. 
 Subject to the other terms and conditions contained in the Plan, each Option may be exercised by the Optionee at such times or intervals and on such other terms and conditions (if any) as are determined by the Committee and specified in the
Option Agreement evidencing the Option. 
 Notwithstanding anything contained herein or in any Option Agreement to the contrary:
(i) in the case of an Option granted prior to the approval of this Plan by the Bank’s shareholders and/or by the North Carolina Commissioner of Banks, then such Option shall be deemed to be granted subject to receipt of those
approvals to the extent required by law and, until such approvals have been obtained, the Option shall be of no force or effect and may not be exercised; and (ii) to the extent that an Option shall not previously have been exercised in
the manner required by the Plan, it shall expire and terminate at 5:00 P.M. on its Expiration Date. 
 In addition to the termination
provisions set forth above, Options granted pursuant to the Plan shall terminate or may be terminated as provided in Paragraphs 5.7 and 6.1 below. Upon the expiration or termination of all or any portion of an Option, such Option or portion thereof
shall, without any further act by the Bank, expire and no longer be exercisable or confer any rights to any person to purchase shares of Common Stock under the Plan. 
  

 5 

	5.3	Notice of Exercise 

 To exercise an Option in whole
or in part, the Optionee or other person then entitled to exercise the Option or portion thereof shall notify the Bank by delivering written notice of such exercise (a “Notice of Exercise”) to the President or the Secretary of the Bank.
Such written notice shall be substantially in the form prescribed by the Option Agreement and shall specify the number of shares of Option Stock to be purchased. A Notice of Exercise shall not be effective (and the Bank shall have no obligation to
sell any Option Stock to the Optionee pursuant to such Notice) unless it satisfies the terms and conditions set forth herein and actually is received by the Bank as provided above prior to the Expiration Date or other termination of the Option to be
exercised. 
 In the event an Option or portion thereof is being exercised by a person other than the Optionee (as provided in Paragraph
5.7(c) below), the Notice of Exercise shall be accompanied by appropriate proof of the right of such person(s) to exercise the Option. 
  

	5.4	Payment Upon Exercise 

 The Exercise Price of Option
Stock being purchased upon the exercise of an Option (in part or in whole) shall be paid by the Optionee in full at the time of such exercise. Such payment may be made (i) in cash, (ii) by official bank check, bank money
order or other certified funds, or (iii) in the discretion of the Committee, by a combination thereof or in such other manner as shall be permitted by applicable law. No Option Stock shall be issued or delivered until full payment of the
Exercise Price therefor has been made. 
  

	5.5	Restrictions 

 At the time an Option is granted, the
Committee shall have the authority, in its sole discretion, to impose restrictions of any nature on the exercise of such Option (including restrictions in the form of a schedule by which an Option becomes exercisable in increments over a period of
time) and on the Option Stock acquired by the Optionee upon such exercise. Without limiting the generality of the foregoing, the Committee may impose conditions restricting absolutely the transferability of Option Stock acquired through exercise of
any Option for such periods as the Committee may determine. Any such restrictions imposed by the Committee shall be specified in the Option Agreement. 
  

	5.6	Nontransferability 

 Options granted hereunder shall
not be assignable or transferable except by will or by the laws of descent and distribution, and, during the lifetime of the Optionee, may be exercised only by the Optionee. More particularly, but without limiting the generality of the foregoing, an
Option may not be sold, assigned, transferred (except as noted herein), pledged or hypothecated in any way and shall not be subject to execution, attachment or similar process. 
  

	5.7	Life of Option 

  

	(a)	Voluntary Terminations and Terminations for Cause. In the event an Optionee’s employment with the Bank shall terminate or be terminated prior to the
Expiration Date of his or her Option, then the status of the Optionee’s Option shall be as specified in the Option Agreement or, if not so specified, then as set forth in Section 5.7(a)(i) through (iii). Authorized leaves of absence,
without a break in service, shall not constitute terminations of employment for purposes of the Plan. The Committee shall determine whether any other absence for military or government service or for any other reasons shall constitute a termination
of employment for purposes of the Plan, and the Committee’s determination shall be final. 

  

 6 

	 	(i)	If, prior to the Expiration Date of his or her Option, an Optionee voluntarily terminates his or her employment with the Bank other than, in the case of an NSO, as a result
of “Retirement” (as defined below), then, to the extent it shall not previously have been exercised in the manner required by the Plan, the Option shall remain in effect and, to the extent it shall not previously have been exercised, the
Optionee shall have the right to exercise the Option at any time before but not later than 5:00 P.M. on the 90th day following the effective date of such termination or, in the event employment is terminated due to the Optionee’s permanent and
total disability, as defined in Section 22(e)(3) of the Code, not later than one year following the effective date of such termination. 

  

	 	(ii)	The termination of an Optionee’s employment with the Bank which is treated as a “retirement” under the terms of any qualified retirement plan maintained by the
Bank from time to time, or the termination of an Optionee’s employment at such earlier time or under such other circumstances as the Committee shall agree in writing to treat as “Retirement” for purposes of the Plan, shall be deemed
to be a “Retirement” for purposes of the Plan. 

  

	 	(iii)	If, prior to the Expiration Date of his or her Option, an Optionee’s employment is terminated by the Bank for Cause, then, to the extent it shall not previously have
been exercised in the manner required by the Plan, the Option immediately shall terminate and be of no further force or effect on the earlier of the date such termination of employment is effective or the date on which the determination is made to
terminate the Optionee’s employment for Cause. 

 For purposes of this Paragraph 5.7(a), the Bank shall have
“Cause” to terminate an Optionee’s employment upon: 
  

	 	(A)	A determination by the Bank, in good faith, that the Optionee (1) has failed in any material respect to perform or discharge his duties or responsibilities of
employment in a reasonably competent manner, or (2) is engaging or has engaged in willful misconduct or conduct which is detrimental to the business prospects of the Bank or which has had or likely will have a material adverse effect on
the Bank’s business or reputation; 

  

	 	(B)	The violation by the Optionee of any applicable federal or state law, or any applicable rule, regulation, order or statement of policy promulgated by any Regulatory Authority
which results from the Eligible 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 to
its reputation; 

  

	 	(C)	The commission in the course of the Optionee’s employment of an act of fraud, embezzlement, theft or proven personal dishonesty, or the Optionee’s being charged
with any felony or other crime involving moral turpitude (whether or not such act or charge involves the Bank or its assets or results in criminal indictment, charges, prosecution or conviction); 

  

	 	(D)	 The conviction of the Optionee of any felony or any criminal offense involving dishonesty or breach of trust, or the occurrence of any event described in
Section 19 of the Federal Deposit Insurance Act or any other event or circumstance which disqualifies the Optionee from serving as an employee or executive officer of, or a 

  

 7 

	 	 
party affiliated with, the Bank; or, in the event the Optionee becomes unacceptable to, or is removed, suspended or prohibited from participating in the
conduct of the Bank’s affairs (or if proceedings for that purpose are commenced), by any Regulatory Authority; 

  

	 	(E)	The exclusion of the Optionee by the carrier or underwriter from coverage under the Bank’s then current “blanket bond” or other fidelity bond or insurance
policy covering its directors, officers or employees, or the occurrence of any event which the Bank believes, in good faith, will result in the Optionee being excluded from such coverage, or having coverage limited as to the Optionee as compared to
other covered officers or employees, pursuant to the terms and conditions of such “blanket bond” or other fidelity bond or insurance policy; or, 

  

	 	(F)	Optionee’s excessive use of any addictive drug or use of any controlled substance, as defined at 21 U.S.C. § 802 and listed on Schedules I through V of 21 U.S.C.
§ 812, as revised from time to time, and as defined by other federal laws and regulations, his use of legal drugs that have not been obtained legally or are not being taken as prescribed by a licensed physician, or his use of alcohol in a
manner that adversely affects the performance of his or her employment duties, prevents him or her from performing his or her employment duties safely or creates a risk to the safety of others at the workplace. 

 For purposes of this Plan, the determination of whether any termination of an Optionee’s employee was for Cause shall be within the sole discretion
of the Committee. 
  

	(b)	All other Cases. Except as otherwise provided in Section 5.7(a), an Option shall be exercisable at any time prior to its Expiration Date.

  

	5.8	Modification, Extension and Renewal of Options 

 Subject to the provisions of Paragraph 6.1 below, any Option may be Modified, Extended or Renewed (as those terms are defined in Article II) only upon the agreement of the Committee and the Optionee. Any such agreement shall be in the form
of a written amendment to the Option Agreement evidencing the Option being Modified, Extended or Renewed and which shall set forth the terms of any such Modification, Extension or Renewal. 
  

	5.9	Other Provisions 

 In addition to the items required
to be in the Option Agreement evidencing an Option, such Option Agreement may contain such other terms, conditions and provisions applicable to such Option or the exercise thereof (including any and all limitations or restrictions as shall be
necessary to comply with any applicable federal and state securities laws and regulations) as the Committee shall, at its sole discretion, deem necessary or desirable; provided, however, that the Committee may not impose any such terms, conditions
or provisions that are inconsistent with any provisions of the Plan. 
  

	5.10	Issuance of Option Stock 

 A stock certificate
representing the number of shares of Option Stock purchased by the Optionee upon the proper exercise of an Option shall be issued and delivered by the Bank as soon as practicable after receipt of a valid and effective Notice of Exercise and full
payment of the Exercise Price relating to those shares. Such certificate shall be delivered to or on the written order of the person exercising the Option. 
  

 8 

 ARTICLE VI 
 GENERAL PROVISIONS 
  

	6.1	Adjustment of Options 

  

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

 In the event of an increase in the number of outstanding shares of the Bank’s
Common Stock in connection with any of the events described above, then, at the Committee’s option and discretion, the aggregate number of shares of Common Stock authorized to be issued under the Plan may be increased by an amount equal to 10%
of the number of additional shares issued by the Bank in connection with such event. 
 Subject to review by the Board of Directors of the
Bank, any such adjustments made by the Committee shall be consistent with changes in the Bank’s outstanding Common Stock resulting from the above events and, when made, shall be final, conclusive and binding on all persons, including, without
limitation, the Bank, its shareholders and each Optionee or other person having any interest in any Option so adjusted. Any fractional shares resulting from any such adjustment shall be eliminated. However, notwithstanding anything contained herein
to the contrary, no Option which is intended to be an ISO shall be adjusted in a manner that causes the Option to fail to continue to qualify as an ISO. 
  

	(b)	 Dissolution; Merger or Consolidation; Sale of Assets. In the event of a dissolution or liquidation of the Bank, the sale of
substantially all the Bank’s assets, a merger or consolidation of the Bank with or into any other corporation or entity (or any other such reorganization or similar transaction) in which the Bank is not the surviving or resulting corporation,
or a statutory share exchange in which the Bank’s outstanding Common Stock is being exchanged for cash or the securities of an entity which is not owned or controlled by the Bank’s or its shareholders, then, by written agreement with an
Optionee, provision may be made in such transaction for the continuation of this Plan and/or the assumption of the Optionee’s Options by any successor corporation to the Bank or by a parent or subsidiary corporation thereof, the conversion of
the Optionee’s Options into rights to purchase or acquire securities of such a corporation, or the substitution for the Optionee’s Options of new options covering shares of any such corporation, or for the payment of cash or other
consideration to the Optionee in exchange for the termination or cancellation of his or her Options. However, if, in any such transaction, such provision is not made by agreement with an Optionee, then, in such event, and to the extent such Options
have not previously been exercised, all rights of the Optionee pursuant to all outstanding Options shall terminate and be of no further 

  

 9 

	 	 
effect immediately prior to the effective time of such dissolution, liquidation, sale, merger, consolidation, share exchange or other reorganization (or at
such other time and pursuant to such rules and regulations as the Committee shall determine and promulgate to the Optionees). However, to the extent such Options shall not previously have been exercised, and notwithstanding any provisions of the
Plan or any Option Agreement to the contrary, each such Option shall become exercisable, and may be exercised, in full immediately prior to the effective time of any such event. The Committee shall give each Optionee at least 90 days prior written
notice of the effective time of an event which gives rise to an immediate purchase right under this Paragraph 6.1. 

  

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

  

	6.2	Rights as a Shareholder 

 Neither an Optionee nor
any other person shall have any rights as a stockholder with respect to any shares of Option Stock covered by an Option until such Option shall have been validly exercised in the manner described herein and in the Option Agreement relating to such
Option, full payment of the Exercise Price shall have been made for such shares, and a stock certificate representing the Option Stock purchased upon such exercise shall have been registered on the Bank’s stock records in the name of and
delivered to such person. Except to the extent of adjustments made pursuant to Paragraph 6.1 above, no adjustment on behalf of the Optionee shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property),
distributions or other rights for which the record date for determining the shareholders entitled to receive the same is prior to the date of registration and delivery of the stock certificate(s) representing the Option Stock. 
  

	6.3	No Right to Employment 

 Neither the Plan nor the
grant of an Option, nor any Option Agreement evidencing any such Option, is intended or shall be deemed or interpreted to constitute an employment agreement or to confer upon an Optionee any right of employment with the Bank, including without
limitation any right to continue in the employ of the Bank, or to interfere with, restrict or otherwise limit in any way the right of the Bank to discharge or terminate the employment of any Optionee at any time for any reason whatsoever, with or
without Cause. 
  

	6.4	Legal Restrictions 

 If in the opinion of legal
counsel for the Bank the issuance or sale of any shares of Option Stock by the Bank pursuant to the exercise of an Option would not be lawful without registration under the Securities Act of 1933 (the “1933 Act”) or without some other
action being taken, or for any other reason, or would require the Bank to obtain approval from any governmental authority or regulatory body having jurisdiction deemed by such counsel to be necessary to such issuance or sale, then the Bank shall not
be obligated to issue or sell any Option Stock pursuant to the exercise of any Option to any Optionee or to any other authorized person unless a registration statement that complies with the provisions of the 1933 Act in respect of such shares is in
effect at the time thereof and all other required or appropriate action has been taken under and pursuant to the terms and provisions of the 1933 Act or other applicable law, or the Bank receives evidence satisfactory to such counsel that the
issuance and sale of such shares, in the absence of an effective registration statement or other action, would not constitute a violation of the 1933 Act or other 

  

 10 

 
applicable law, or unless any such required approval shall have been obtained. The Bank is in no event obligated to register any such shares, to comply with
any exemption from registration requirements or to take any other action which may be required in order to permit, or to remedy or remove any prohibition or limitation on, the issuance or sale of Option Stock to any Optionee or other authorized
person. 
 The Committee, as a condition of the grant of an Option and/or the exercise thereof, may require that the Optionee execute one or
more undertakings in such form as the Committee shall prescribe to the effect that such shares are being acquired for investment purposes only and not with a view to the distribution or resale thereof. 
 Notwithstanding anything contained herein to the contrary, it is understood and agreed that the Bank (or any of its successors in interest) shall not be
required to take any action under this Plan or any Option granted hereunder if: 
  

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

  

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

  

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

  

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

  

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

  

	6.5	No Obligation to Purchase Shares 

 The granting of
an Option pursuant to the Plan shall impose no obligation on the Optionee to purchase any shares covered by such Option. 
  

	6.6	Payment of Taxes 

 Each Optionee shall be
responsible for all federal, state, local or other taxes of any nature as shall be imposed pursuant to any law or governmental regulation or ruling on any Option or the exercise thereof or on any income which an Optionee is deemed to recognize in
connection with an Option. If the Committee shall determine to its reasonable satisfaction that the Bank is required to pay or withhold the whole or any part of any estate, inheritance, income, or other tax with respect to or in connection with any
Option or the exercise thereof, then the Bank shall have the full power and authority to withhold and pay such tax out of any shares of Common Stock being purchased by the Optionee or from the Optionee’s salary or any other funds otherwise
payable to the Optionee, or, prior to and as a condition of exercising such Option, the Bank may require that the Optionee pay to it in cash the amount of any such tax which the Bank, in good faith, deems itself required to withhold. 
  

	6.7	Choice of Law 

 The validity, interpretation and
administration of the Plan, any Option Agreement, and of any rules, regulations, determinations or decisions made thereunder, and the rights of any and all persons having or claiming to have any interest therein or thereunder, shall be determined
exclusively in accordance with the 

  

 11 

 
laws of the State of North Carolina. Without limiting the generality of the foregoing, the period within which any action in connection with the Plan must be
commenced shall be governed by the laws of the State of North Carolina, without regard to the place where the act or omission complained of took place, the residence of any party to such action, or the place where the action may be brought or
maintained. 
  

	6.8	Modification of Plan 

 The Board, upon
recommendation of the Committee, may, from time to time, amend, modify, suspend, terminate or discontinue the Plan at any time without notice, provided, however, that no such action by the Board shall adversely affect any Optionee’s rights
under any then outstanding Options without such Optionee’s prior written consent; and, provided further that, except as shall be required to comport with changes in the Code, any modification or amendment of the Plan that
(i) increases the aggregate number of shares of Common Stock which may be issued upon the exercise of Options (other than as provided in Paragraph 6.1 above), (ii) changes the formula by which the Exercise Price is
determined, (iii) changes the provisions of the Plan with respect to the determination of Employees to whom Options may be granted or, (iv) otherwise materially increases the benefits accruing to Optionees under the Plan,
shall be subject to the approval of the Bank’s shareholders. In the event the Board shall terminate or discontinue the Plan, such action shall not operate to deprive any Optionee of any rights theretofore acquired by him or her under the Plan,
and any Options outstanding as of the date of any such termination shall remain in full force and effect according to their terms as though the Plan had not been terminated. 
  

	6.9	Application of Funds 

 The proceeds received by the
Bank from the sale of Common Stock pursuant to Options granted under the Plan will be used for general corporate purposes. 
  

	6.10	Notices 

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

	6.11	Conformity With Applicable Laws and Regulations 

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

 12 

	6.12	Successors and Assigns 

 Subject to Paragraph 5.6
above, this Plan shall bind and inure to the benefit of the Bank, any Optionee, and their respective successors, assigns, personal or legal representatives and heirs. 
  

	6.13	Severability 

 It is intended that each provision of
this Plan shall be viewed as separate and divisible, and in the event that any provision hereof shall be held to be invalid or unenforceable, the remaining provisions shall continue to be in full force and effect. 
  

	6.14	Titles 

 Titles of Articles and Paragraphs are
provided herein for convenience only, do not modify or affect the meaning of any provision herein, and shall not serve as a basis for interpretation or construction of this Plan. 
  

	6.15	Gender and Number 

 As used herein, the masculine
gender shall include the feminine and neuter, the singular number the plural, and vice versa, whenever such meanings are appropriate. 
 IN WITNESS WHEREOF, pursuant to the approval of this Plan by its Board of Directors on July 26, 2004, the Bank has caused this Plan to be executed in its corporate name by its President, attested by its Secretary and its
corporate seal to be hereto affixed, all by authority duly given by the Board. 
 As of the 26th day of July, 2004. 
  

			
	MOUNTAIN 1ST BANK & TRUST COMPANY
		
	By:	 	 /s/ Gregory L. Gibson]

		 	Gregory L. Gibson
		 	Chief Executive Officer

  

	
	ATTEST:
	
	 /s/ Sherrie B. Rogers

	Secretary

  

 13

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