Document:

Employment Agreement - Janak Amin

 Exhibit 10.4 
 AMENDED AND RESTATED 
 EMPLOYMENT AGREEMENT 
 THIS AGREEMENT is made as of this 3rd day of October, 2007, between GRAYSTONE FINANCIAL CORP., a Pennsylvania business corporation (the
“Corporation”), and GRAYSTONE BANK (“Bank”), a Pennsylvania chartered bank and JANAK AMIN, an adult individual (“Executive”). 
 WITNESSETH: 
 WHEREAS, the Bank and Executive have been parties to an employment
agreement dated November 14, 2005 relating to the employment of the Executive by the Bank (the “Original Agreement”); and 
 WHEREAS, the Corporation and the Bank desire to continue to employ Executive to serve in the capacity of Executive Vice President of the Corporation and the Bank on the terms and conditions set forth herein; and 
 WHEREAS, the Corporation, the Bank and the Executive desire to amend and restate the Original Agreement as set forth herein. 
 AGREEMENT 
 NOW,
THEREFORE, the parties hereto, intending to be legally bound, agree as follows: 
 1. Employment. The Corporation and the
Bank each hereby employs Executive and Executive hereby accepts employment with Corporation and the Bank, on the terms and conditions set forth in this Agreement. 
 2. Duties of Employee. Executive shall serve as an Executive Vice President of the Corporation and the Bank, reporting to the Chief Executive Officer and shall have such responsibilities, powers and
duties as may from time to time be prescribed by the Chief Executive Officer and/or the Board of Directors of the Corporation and the Bank, provided such powers and duties are consistent with the Executive’s position. Executive shall devote his
full time, attention and energies to the business of the Corporation and the Bank during the Employment Period (as defined in Section 3 of this Agreement); provided, however, that this Section 2 shall not be construed as preventing
Executive from (a) engaging in activities incident or necessary to personal investments, (b) acting as a member of the board of directors of any non-profit association or corporation, or (c) being involved in any other activity with
the prior approval of the Chief Executive Officer. The Executive shall not engage in any business or commercial activities, duties or pursuits which compete with the business or commercial activities of the Corporation or the Bank, nor may the
Executive serve as a director or officer or 

 
in any other capacity in a company which competes with the Corporation or the Bank. 
 3. Term of Agreement. 
 (a) Employment Period. This Agreement shall be for a two (2) year period (the “Employment Period”) beginning on the date first mentioned above, and if not previously terminated pursuant to the terms of this Agreement,
the Employment Period shall end two (2) years later; provided however, that the Employment Period shall be automatically renewed one year later on the first anniversary date of the commencement of the Employment Period (the “Renewal
Date”) for a period ending two (2) years from the Renewal Date unless either party shall give written notice of non-renewal to the other party at least ninety (90) days prior to the Renewal Date, in which event this Agreement shall
terminate at the end of the Employment Period. If this Agreement is renewed on the Renewal Date, it will be automatically renewed on the first anniversary date of the Renewal Date and each subsequent year (the “Annual Renewal Date”) for a
period ending two (2) years from each Annual Renewal Date, unless either party gives written notice of non-renewal to the other party at least ninety (90) days prior to the Annual Renewal Date, in which case this Agreement will continue in
effect for a term ending two (2) years from the Annual Renewal Date immediately following such notice. 
 (b)
Termination for Cause. Notwithstanding the provisions of Section 3(a) of this Agreement, this Agreement may be terminated by the Corporation or the Bank for Cause (as defined herein) upon written notice from the Board of Directors of the
Corporation to Executive. As used in this Agreement, “Cause” shall mean any of the following: 
 (i)
Executive’s conviction of or plea of guilty or nolo contendere to a felony, a crime of falsehood or a crime involving moral turpitude, or the actual incarceration of Executive for a period of thirty (30) consecutive days or more;

 (ii) Executive’s willful continuing failure to follow the lawful instructions of the Chief Executive Officer or the
Board of Directors of the Corporation or the Bank (which instructions must be consistent with the terms of this Agreement), after the Executive’s receipt of written notice of such instructions, other than a failure resulting form
Executive’s incapacity because of physical or mental illness; 
 (iii) A government regulatory agency recommends or
orders in writing that the Corporation or the Bank terminate the employment of the Executive with the Corporation or the Bank or relieve him of his duties as such relate to the Corporation or the Bank; or 
 (iv) Executive’s violation of the covenant not to compete contained in Section 8 or the confidentiality provisions of
Section 9. 
 If this Agreement is terminated for Cause, all of Executive’s rights under this Agreement shall cease
as of the effective date of such termination, except that: 
  

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 (i) the Bank shall pay to Executive the unpaid portion, if any, of his Annual Base Salary
through the date of termination; and 
 (ii) the Bank shall provide to Employee such post-employment benefits, if any, as may
be provided for under the terms of the employee benefit plans of the Bank then in effect. 
 (c) Termination for Good
Reason. Notwithstanding the provisions of Section 3(a) of this Agreement, this Agreement shall terminate automatically upon Executive’s termination of employment for Good Reason. The term “Good Reason” shall mean (i) a
reduction in salary or material reduction in benefits, including any incentive compensation plan, except in cases of a national financial depression or emergency when such reduction has been implemented generally by the Board of Directors for the
Corporation’s senior management, (ii) a reassignment which assigns full-time employment duties to Executive at a location more than fifty (50) miles from the Corporation’s principal executive office and from the office at which
the Executive spends the majority of his time, in either case on the date of this Agreement, (iii) any other material breach or default by the Corporation or the Bank under any term or provision of this Agreement, including any reduction, in
any material respect and without Executive’s consent, of the authority, duties or other terms and conditions of Executive’s employment hereunder, or (iv) any delivery by the Corporation or the Bank to the Executive of a written notice
of non-renewal pursuant to Section 3(a) above, in all cases after notice from the Executive to the Corporation within ninety (90) days after the initial existence of any such condition that the condition constitutes Good Reason and the
failure of the Corporation and the Bank to cure such situation within thirty (30) days after said notice. If such termination occurs for Good Reason, then Bank shall pay Executive such benefits as are set forth in Section 7 of this
Agreement. 
 (d) Death. Notwithstanding the provisions of Section 3(a) of this Agreement, this Agreement shall
terminate automatically upon Executive’s death and Executive’s rights under this Agreement shall cease as of the date of such termination, except that (i) the Bank shall pay to Executive’s spouse, personal representative, or
estate the unpaid portion, if any, of his Annual Base Salary through date of death and the balance of the payments (if any) owing pursuant to Section 15(b) below, and (ii) the Bank shall provide to Executive’s dependents any benefits
due under the Bank’s employee benefit plans. 
 (e) Disability. Executive, the Corporation and the Bank agree that
if Executive becomes eligible for employer-provided short-term and/or long-term disability benefits, or worker’s compensation benefits, then the Bank’s obligation to pay Executive his base salary shall be reduced by the amount of the
disability or worker’s compensation benefits received by Executive. 
 Executive, the Corporation and the Bank agree that
if, in the judgment of the Corporation’s Board of Directors, the Executive is unable, as a result of illness or injury, to perform the essential functions of his position on a full-time basis with or without a reasonable accommodation and
without posing a direct threat to himself or others for a 

  

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period of six months, the Corporation and the Bank will suffer an undue hardship in continuing the Executive’s employment as set forth in this
agreement. Accordingly, this Agreement shall terminate at the end of the six-month period, and all of Executive’s rights under this Agreement shall cease, with the exception of those rights which Executive may have under the Bank’s benefit
plans. 
 4. Employment Period Compensation, Benefits and Expenses. 
 (a) Annual Base Salary. For services performed by Executive under this Agreement, Bank shall pay Executive an Annual Base Salary
during the Employment Period at the rate of One Hundred Forty Thousand dollars ($140,000) per year, minus applicable withholdings and deductions, payable at the same times as salaries are payable to other executive employees of the Bank. The Annual
Base Salary shall be reviewed annually by the Board of Directors and the Board may, from time to time, increase Executive’s Annual Base Salary, and any and all such increases shall be deemed to constitute amendments to this Section 4(a) to
reflect the increased amounts, effective as of the date established for such increases by the Board. In reviewing adjustments to Annual Base Salary, the Board of Directors shall consider relevant market data regarding executive salaries at peer
financial institutions and the performance of the Corporation and the Bank under the Executive’s leadership. 
 (b)
Bonus. The Board of Directors of the Corporation and the Bank may provide for the payment of an annual bonus to the Executive as it deems appropriate to provide incentive to the Executive and to reward the Executive for his performance. Such
bonus may, but need not be, determined in accordance with any incentive bonus programs for executive officers as approved by the Board of Directors. The payment of any such bonuses will not reduce or otherwise affect any other obligation of the Bank
to the Executive provided for in this Agreement. 
 (c) Vacations, Holidays, etc. During the term of this Agreement,
Executive shall be entitled to be paid annual vacation in accordance with the policies as established from time to time by the Board of Directors of the Bank. However, Executive shall not be entitled to receive any additional compensation from Bank
for failure to take a vacation, nor shall Executive be able to accumulate unused vacation time from one year to the next, except to the extent authorized by the Board of Directors of Bank. The Executive shall also be entitled to all paid holidays,
sick days and personal days provided by the Bank to its regular full-time employees and senior executive officers. 
 (d)
Automobile. During the term of this Agreement, the Bank shall provide the Executive with exclusive use of an automobile mutually agreed upon by Executive and Bank. This automobile shall be a mid-size car or comparable sports utility vehicle.
The Bank shall be responsible and shall pay for all costs associated with the operation and maintenance of such automobile, including, without limitation, insurance coverage, repairs, maintenance and other operating and incidental expenses,
including registration, fuel and oil. 
  

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 (e) Country Club Membership Fees. The Bank shall pay for Executive’s
membership dues, capital fund assessments and similar items necessary or appropriate to maintain a membership at a country club within the Bank’s market area as mutually agreed upon by Bank and Executive. 
 (f) Stock Based Incentives. During the term of this Agreement, Executive shall be entitled to such stock based incentives as may be
granted from time to time by the Corporation’s Board of Directors under the Corporation’s stock based incentive plans and as are consistent with the Executive’s responsibilities and performance. 
 (g) Employee Benefit Plans. During the term of this Agreement, Executive shall be entitled to participate in or receive the
benefits of any employee benefit plan currently in effect at the Bank, subject to the terms of said plan, until such time that the Board of Directors authorizes a change in such benefits. 
 (h) Business Expenses. During the term of this Agreement, Executive shall be entitled to receive prompt reimbursement for all
reasonable expenses incurred by him, which are properly accounted for, in accordance with the policies and procedures established by the Board of Directors of the Corporation or the Bank for its executive officers. 
 5. Termination of Employment Following Change in Control. 
 (a) If a Change in Control (as defined in Section 5(b) of this Agreement) shall occur at any time during the term of this Agreement,
Executive may terminate his employment for any reason or no reason by delivering a notice in writing (the “Notice of Termination”) to the Corporation within thirty (30) days of the Change in Control which termination shall be
effective immediately upon delivery of such Notice of Termination. 
 (b) As used in this Agreement, “Change in
Control” shall mean the occurrence immediately of any of the following: 
 (A) the consummation of (i) a merger,
consolidation, division or other fundamental transaction involving the Corporation or the Bank, (ii) a sale, exchange, transfer or other disposition of substantially all of the assets of the Corporation or the Bank to any entity which is not a
direct or indirect subsidiary of the Corporation, or (iii) a purchase by the Corporation or the Bank of substantially all of the assets of another entity; unless (y) such merger, consolidation, division, sale, exchange, transfer,
purchase, disposition or other transaction is approved in advance by eighty percent (80%) or more of the members of the Board of Directors of the Corporation who are not interested in the transaction and (z) a majority of the members of
the Board of Directors of the legal entity resulting from or existing after any such transaction and a majority of the Board of Directors of such entity’s parent corporation, if any, are former members of the Board of Directors of the
Corporation; or 
  

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 (B) any “person” (as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934 (the “Exchange Act”)), other than the Corporation, a direct or indirect subsidiary of the Corporation, or a person who is the beneficial owner of more than twenty-five percent (25%) of the
Corporation’s outstanding securities on the date of this Agreement becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Corporation representing twenty-five
percent (25%) or more of the combined voting power of Corporation’s then outstanding securities; or 
 (C) during
any period of two (2) consecutive years during the term of Executive’s employment under this Agreement, individuals who at the beginning of such period constitute the Board of Directors of the Corporation cease for any reason to constitute
at least a majority thereof, unless the election of each director who was not a director at the beginning of such period has been approved in advance by directors representing at least two-thirds of the directors then in office who were directors at
the beginning of the period; or 
 (D) any other change in control of the Corporation or the Bank similar in effect to any of
the foregoing. 
 6. Rights in Event of Change in Control. 
 (a) In the event that Executive delivers a Notice of Termination (as defined in Section 5(a) of this Agreement) to the Corporation,
Executive shall be entitled to receive the compensation and benefits set forth below: 
 (i) Executive shall be paid, within
twenty (20) days following termination, a lump sum cash payment equal to two times the sum of (1) the highest Annual Base Salary as defined in Section 4(a) during the immediately preceding three calendar years, (2) the highest
cash bonus and other cash incentive compensation earned by him with respect to one of the three calendar years immediately preceding the year of termination and (3) the highest value of stock options and other stock based incentives awarded to
the Executive with respect to one of the three calendar years immediately preceding the year of termination, which value shall be based upon the grant-date fair value of the award determined in accordance with SFAS 123(R) (“Share-Based
Payments”). The amount shall be subject to federal, state, and local tax withholdings. Notwithstanding the foregoing, the value of restricted stock awarded to Executive under the Bank’s 2006 Restricted Stock Plan shall not be included
under §6(a)(i)(3) above for purposes of calculating the compensation payable to Executive. 
 (ii) In addition, for a
period of twenty-four (24) months from the date of termination of employment, Executive shall be permitted to continue 

  

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participation in and the Bank shall maintain the same level of contribution for Executive’s participation in the Bank’s life, disability,
medical/health insurance and other health and welfare benefits in effect with respect to Executive during the one (1) year prior to his termination of employment, or, if Bank is not permitted by the insurance carriers to provide such benefits
because Executive is no longer an employee, a dollar amount equal to the cost to Executive of obtaining such benefits (or substantially similar benefits). 
 (b) Executive shall not be required to mitigate the amount of any payment provided for in this Section 6 by seeking other employment or otherwise, nor shall the amount of payment or the benefit provided for in
this Section 6 be reduced by any compensation earned by Executive as the result of employment by another employer or by reason of Executive’s receipt of or right to receive any retirement or other benefits after the date of termination of
employment or otherwise. 
 (c) Should the total of all amounts or benefits payable hereunder, together with any other
payments which Executive has a right to receive from the Corporation, the Bank, any affiliates or subsidiaries of the Corporation or the Bank, or any successors of any of the foregoing, result in the imposition of an excise tax under Internal
Revenue Code Section 4999 (or any successor thereto), Executive shall be entitled to an additional “excise tax” adjustment payment in an amount such that, after the payment of all federal and state income and excise taxes, Executive
will be in the same after-tax position as if no excise tax had been imposed. Any payment or benefit which is required to be included under Internal Revenue Code Sections 280G or 4999 (or any successor provisions thereto) for purposes of determining
whether an excise tax is payable shall be deemed a payment “made to Executive” or a payment “which Executive has a right to receive” for purposes of this provision. The Corporation or the Bank (or its successor) shall be
responsible for the costs of calculation of the deductibility of payments and benefits and the excise tax by the Corporation’s independent certified accountant and tax counsel and shall notify Executive of the amount of excise tax prior to the
time such excise tax is due. If at any time it is determined that the additional “excise tax” adjustment payment previously made to Executive was insufficient to cover the effect of the excise tax, the gross-up payment pursuant to this
provision shall be increased to make Executive whole, including an amount to cover the payment of any penalties resulting from any incorrect or late payment of the excise tax resulting from the prior calculation. All such amounts required to be paid
hereunder shall be paid at the time any withholdings may be required (or, if earlier, the time Executive shall be required to pay such amounts) under applicable law, and any additional amounts to which Executive may be entitled shall be paid or
reimbursed no later than fifteen (15) days following confirmation of such amount by the Corporation’s independent accountants; provided however, that any payments to be made under this Section 6(c) shall in all events be made no later
than the end of the Executive’s taxable year next following the taxable year in which the Executive remits such excise tax payments. In the event any amounts paid hereunder are subsequently determined to be in error because estimates were
required or otherwise, the parties agree to reimburse each other to correct such error, as appropriate, and to pay interest thereon at the applicable federal rate (as determined 

  

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under Internal Revenue Code Section 1274 for the period of time such erroneous amount remained outstanding and unreimbursed). The parties recognize that
the actual implementation of the provisions of this subsection are complex and agree to deal with each other in good faith to resolve any questions or disagreements arising hereunder. 
 7. Rights in Event of Termination of Employment Absent Change in Control. 
 (a) If Executive’s employment is involuntarily terminated by the Corporation or the Bank without Cause or is terminated by Executive
for Good Reason pursuant to Section 3(c), then Bank shall pay (or cause to be paid) to Executive, within twenty (20) days following termination, a lump sum cash payment equal to two times the sum of (1) the highest Annual Base Salary
as defined in Section 4(a) during the immediately preceding three calendar years, (2) the highest cash bonus and other cash incentive compensation earned by him with respect to one of the three calendar years immediately preceding the year
of termination and (3) the highest value of stock options and other stock based incentives awarded to the Executive with respect to one of the three calendar years immediately preceding the year of termination, which value shall be based upon
the grant-date fair value of the award determined in accordance with SFAS 123(R) (“Share-Based Payments”). The amount shall be subject to federal, state and local tax withholdings. In addition, for a period of two (2) years from the
date of termination of employment, Executive shall be permitted to continue participation in, and the Bank shall maintain the same level of contribution for, Executive’s participation in the Bank’s life, disability, medical/health
insurance and other health and welfare benefits in effect with respect to Executive during the one (1) year prior to his termination of employment, or, if Bank cannot provide such benefits because Executive is no longer an employee, a dollar
amount equal to the cost of Executive of obtaining such benefits (or substantially similar benefits). In addition, if permitted pursuant to the terms of the plan, Executive shall receive additional retirement benefits to which he would have been
entitled had his employment continued through the then remaining term of the Agreement. Notwithstanding the foregoing, the value of restricted stock awarded to Executive under the Bank’s 2006 Restricted Stock Plan shall not be included under
§7(a)(3) above for purposes of calculating the compensation payable to Executive. 
 (b) Executive shall not be required
to mitigate the amount of any payment provided for in this Section 7 by seeking other employment or otherwise, nor shall the amount of payment or the benefit provided for in this Section 7 be reduced by any compensation earned by Executive
as the result of employment by another employer or by reason of Executive’s receipt of or right to receive any retirement or other benefits after the date of termination of employment or otherwise. 
 (c) In the event that amounts or benefits payable hereunder, together with any other payments which Executive has a right to receive from
the Corporation, the Bank, any affiliates or subsidiaries of the Corporation or the Bank, or any successors of any of the foregoing, result in the imposition of an excise tax under Internal Revenue Code Section 4999 (or any successor thereto),
Executive shall be entitled to an additional “excise tax” adjustment payment in an amount such that, after the payment of all federal 

  

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and state income and excise taxes, Executive will be in the same after-tax position as if no excise tax had been imposed. Any payment or benefit which is
required to be included under Internal Revenue Code Sections 280G or 4999 (or any successor provisions thereto) for purposes of determining whether an excise tax is payable shall be deemed a payment “made to Executive” or a payment
“which Executive has a right to receive” for purposes of this provision. The Bank (or its successor) shall be responsible for the costs of calculation of the deductibility of payments end benefits and the excise tax by the Bank’s
independent certified accountant and tax counsel and shall notify Executive of the amount of excise tax due prior to the time such excise tax is due. If at any time it is determined that the additional “excise tax” adjustment payment
previously made to Executive was insufficient to cover the effect of the excise tax, the gross-up payment pursuant to this provision shall be increased to make Executive whole, including an amount to cover the payment of any penalties resulting from
any incorrect or late payment of the excise tax resulting from the prior calculation. All such amounts required to be paid hereunder shall be paid at the time any withholdings may be required (or, if earlier, the time Executive shall be required to
pay such amounts) under applicable law, and any additional amounts to which Executive may be entitled shall be paid or reimbursed no later than fifteen (15) days following confirmation of such amount by the Corporation’s independent
accountants; provided however, that any payments to be made under this Section 6(c) shall in all events be made no later than the end of the Executive’s taxable year next following the taxable year in which the Executive remits such excise
tax payments. In the event any amounts paid hereunder are subsequently determined to be in error because estimates were required or otherwise, the parties agree to reimburse each other to correct such error, as appropriate, and to pay interest
thereon at the applicable federal rate (as determined under Code Section 1274 for the period of time such erroneous amount remained outstanding and unreimbursed). The parties recognize that the actual implementation of the provisions of this
subsection are complex and agree to deal with each other in good faith to resolve any questions or disagreements arising hereunder. 
 8.
Covenant Not to Compete. 
 (a) Executive hereby acknowledges and recognizes the highly competitive nature of
the business of the Corporation and the Bank and accordingly agrees that, during and for the applicable period set forth in Section 8(c) hereof, Executive shall not: 
 (i) enter into or be engaged (other than by the Corporation or the Bank), directly or indirectly, either for his own account or as agent,
consultant, employee, partner, officer, director, proprietor, investor (except as an investor owning less than 5% of the stock of a publicly owned company) or otherwise of any person, firm, corporation or enterprise engaged in (1) the banking
(including bank holding company) or financial services industry, (2) starting a new bank or (3) any other activity in which the Corporation, Bank or any of its subsidiaries are engaged during the Employment Period, in either case within a
fifty (50) mile radius of the legal or principal executive office of the Corporation or the Bank and the office at which the Executive spent the majority of his time (the “Non-Competition 

  

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Area”); or 
 (ii) solicit,
directly or indirectly, current or former customers of the Corporation or the Bank or any of their respective subsidiaries to divert their business from the Corporation and/or the Bank; or 
 (iii) solicit, directly or indirectly, any person who is employed by the Corporation or the Bank or any of their respective subsidiaries
to leave the employ of the Corporation or the Bank. 
 (b) It is expressly understood and agreed that, although the parties
consider the restrictions contained in Section 8(a) hereof reasonable for the purpose of preserving for the Corporation, the Bank and its subsidiaries their goodwill and other proprietary rights, if a final judicial determination is made by a
court having jurisdiction that the time or territory or any other restriction contained in this Section 8(a) hereof is an unreasonable or otherwise unenforceable restriction against Executive, the provisions of Section 8(a) hereof shall
not be rendered void but shall be deemed amended to apply as to such maximum time and territory and to such other extent as such court may judicially determine or indicate to be reasonable. 
 (c) The provisions of this Section 8 shall be applicable commencing on the date of this Agreement and continuing for twelve
(12) months after the effective date of the termination of Executive’s employment. Notwithstanding the above provisions, if the Executive violates the provisions of this Section 8 and the Bank must seek enforcement of the provisions
of Section 8 and is successful in enforcing the provisions, either pursuant to a settlement agreement, or pursuant to court order, the covenant not to compete will remain in effect for one full year following the date of the settlement
agreement or court order. 
 (d) Executive hereby agrees that the provisions of this Section 8 are fully assignable by
the Corporation and the Bank to any successor. Executive also acknowledges that the terms and conditions of this Section 8 will not be affected by the circumstances surrounding his termination of employment. 
 (e) The Executive acknowledges and agrees that any breach of the restrictions set forth in this Section 8 will result in irreparable
injury to the Corporation and the Bank for which it shall have no meaningful remedy at law, and the Corporation and the Bank shall be entitled to injunctive relief in order to enforce provisions hereof. Upon obtaining any such final and
nonappealable injunction, the Corporation and the Bank shall be entitled to pursue reimbursement from the Executive and/or the Executive’s employer of attorney’s fees and costs reasonably incurred in obtaining such final and nonappealable
injunction. In addition, the Corporation and the Bank shall be entitled to pursue reimbursement from the Executive and/or the Executive’s employer of costs reasonably incurred in securing a qualified replacement for any employee enticed away
from the Corporation and the Bank by Executive. Further, the Corporation and the Bank shall be entitled to set off against or obtain reimbursement from Executive of any payments owed 

  

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or made to the Executive hereunder. 
 9.
Unauthorized Disclosure. During the term of his employment hereunder, or at any later time, the Executive shall not, without the written consent of the Board of Directors of the Corporation and the Bank or a person authorized thereby
(except as may be required pursuant to a subpoena or other legal process), knowingly disclose to any person, other than an employee of the Corporation and the Bank or a person to whom disclosure is reasonably necessary or appropriate in connection
with the performance by the executive of his duties as an executive of the Corporation and the Bank, any material confidential information obtained by him while in the employ of the Corporation and the Bank with respect to any of the Corporation and
the Bank’s services, products, improvements, formulas, designs or styles, processes, customers, methods of business or any business practices the disclosure of which could be or will be damaging to the Corporation and the Bank; provided,
however, that confidential information shall not include any information known generally to the public (other than as a result of unauthorized disclosure by the Executive or any person with the assistance, consent or direction of the Executive) or
any information of a type not other considered confidential by persons engaged in the same business or a business similar to that conducted by the Corporation and the Bank or any information that must be disclosed as required by law. 
 10. Indemnification; Liability Insurance. The Corporation and the Bank shall indemnify the Executive, to the fullest extent permitted by
Pennsylvania law, with respect to any threatened, pending or contemplated action, suit or proceeding brought against him by reason of the fact that he is or was a director, officer, employee or agent of the Corporation and the Bank or is or was
serving at the written request of the Corporation as a director, officer, employee or agent of another person or entity. The Executive’s right to indemnification provided herein is not exclusive of any other rights to which Executive may be
entitled under any bylaw, agreement, vote of shareholders or otherwise, and shall continue beyond the term of this Agreement. 
 11.
Notices. Except as otherwise provided in this Agreement, any notice required or permitted to be given under this Agreement shall be deemed properly given if in writing and if mailed by registered or certified mail, postage prepaid with
return receipt requested, to Executive’s address, in the case of notices to Executive, and to the principal executive office of the Corporation, in the case of notice to the Corporation or the Bank. 
 12. Waiver. No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to
in writing and signed by Executive and an executive officer specifically designated by the Board of Directors of the Corporation. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any
condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. 
 13. Assignment. This Agreement shall not be assignable by any party, except by Bank and the Corporation to any successor in interest to its
business. 
  

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 14. Entire Agreement. This Agreement contains the entire agreement of the parties relating
to the subject matter of this Agreement and supersedes and replaces any prior written or oral agreements between them respecting the within subject matter, including, without limitation, the Original Agreement. 
 15. Successors; Binding Agreement. 
 (a) The Corporation and the Bank will require any successor (whether direct or indirect, by purchase, merger, consolidation, or otherwise) to all or substantially all of the business and/or assets of the Corporation
and/or the Bank to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Corporation and the Bank would be required to perform it if no such succession had taken place. As used in this Agreement,
“Corporation” and “Bank” shall mean the Corporation and the Bank, as defined previously and any successor to its respective business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of
law or otherwise. 
 (b) This Agreement shall inure to the benefit of and be enforceable by Executive’s personal or legal
representatives, executors, administrators, heirs, distributees, devisees or legatees. If Executive should die after a notice of termination pursuant to Section 3(c) or 5(a) is delivered by Executive, or following termination of
Executive’s employment without Cause, and any amounts would be payable to Executive under this Agreement if Executive had continued to live, all such amounts shall be paid in accordance with the terms of this Agreement to Executive’s
devisee, legatee, or other designee, or, if there is no such designee, to Executive’s estate. 
 16. Arbitration. The
Corporation, the Bank and Executive recognize that in the event a dispute should arise between them concerning the interpretation or implementation of this Agreement, lengthy and expensive litigation will not afford a practical resolution of the
issues within a reasonable period of time. Consequently, with the exception of the covenant not to compete provisions in Section 8, which the Corporation and/or the Bank may seek to enforce in any court of competent jurisdiction, each party
agrees that all disputes, disagreements and questions of interpretation concerning this Agreement are to be submitted to resolution, in Harrisburg, Pennsylvania, to the American Arbitration Association (the “Association”) in accordance
with the Association’s National Rules for the Resolution of Employment Disputes or other applicable rules then in effect (“Rules”). The Corporation, the Bank or Executive may initiate an arbitration proceeding at any time by giving
notice to the other in accordance with the Rules. The Corporation, the Bank and Executive may, as a matter or right, mutually agree on the appointment of a particular arbitrator from the Association’s pool. The arbitrator shall not be bound by
the rules of evidence and procedure of the courts of the Commonwealth of Pennsylvania but shall be bound by the substantive law applicable to this Agreement. The decision of the arbitrator, absent fraud, duress, incompetence or gross and obvious
error of act, shall be final and binding upon the parties and shall be enforceable in courts of proper jurisdiction. Following written notice of a request for arbitration, the Corporation, Bank and Executive shall be entitled to an injunction
restraining all further proceedings in any pending or subsequently filed litigation concerning this Agreement, except as otherwise provided herein. 
  

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 17. Legal Expenses. Bank will pay to the Executive all reasonable legal fees and expenses
when incurred by the Executive in seeking to obtain or enforce any right or benefit provided by this Agreement, provided he brings the action in good faith and is successful on the merits. 
 18. Validity. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any
other provision of this Agreement, which shall remain in full force and effect. 
 19. Applicable Law. This Agreement shall be
governed by and construed in accordance with the domestic, internal laws of the Commonwealth of Pennsylvania, without regard to its conflicts of laws principles. 
 20. Headings. The section headings of this Agreement are for convenience only and shall not control or affect the meaning or construction or limit the scope or intent of any of the provisions of this
Agreement. 
 21. 409A Safe Harbor. The parties hereto intend that any and all post-employment compensation under this
Agreement satisfy the requirements of Section 409A of the Internal Revenue Code of 1986, as amended, and any regulations or guidance promulgated thereunder (“Section 409A”) or an exception or exclusion therefrom to avoid the
imposition of any accelerated or additional taxes pursuant to Section 409A. Accordingly, notwithstanding anything in this Agreement to the contrary, in no event shall the Corporation or the Bank be obligated to commence payment or distribution
to the Executive of any amount that constitutes deferred compensation within the meaning of Section 409A earlier than the earliest permissible date under Section 409A that such amount could be paid without any accelerated or additional
taxes or interest being imposed under Section 409A. The Corporation, the Bank and the Executive agree that they will execute any and all amendments to this Agreement as they mutually agree in good faith may be necessary to ensure compliance
with the distribution provisions of Section 409A and to cause any and all amounts due under this Agreement, the payment or distribution of which is delayed pursuant to Section 409A, to be paid or distributed in a single sum payment at the
earliest permissible date under Section 409A. 
  

 - 13 - 

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

  

							
	ATTEST:	 		 	GRAYSTONE FINANCIAL CORP.
				
	 /s/ Carl D. Lundblad
	 		 	By:	 	 /s/ Andrew Samuel

	Secretary	 		 		 	Andrew Samuel, President & CEO
			
	ATTEST:	 		 	GRAYSTONE BANK
				
	 /s/ Carl D. Lundblad
	 		 	By:	 	 /s/ Andrew Samuel

	Secretary	 		 		 	Andrew Samuel, President & CEO
			
	WITNESS:	 		 	EXECUTIVE
			
	 /s/ Andrew Samuel
	 		 	 /s/ Janak Amin

		 		 	Janak Amin

  

 - 14 - 

 FIRST AMENDMENT TO AMENDED AND RESTATED EMPLOYMENT AGREEMENT 
 THIS FIRST AMENDMENT (this “Amendment”) is made as of November 12, 2008, by and among GRAYSTONE FINANCIAL CORP., a
Pennsylvania business corporation (hereinafter referred to as the “Corporation”), GRAYSTONE BANK, a Pennsylvania state chartered bank (hereinafter referred to as the “Bank”), and JANAK AMIN (hereinafter referred to
as “Executive”). 
 W I T N E S S E T H: 
 WHEREAS, Executive is now serving as Executive Vice President of the Corporation and the Bank; and 
 WHEREAS, the Corporation, the Bank and Executive are parties to that certain Amended and Restated Employment Agreement dated as of October 3,
2007 (the “Employment Agreement”) pursuant to which, among other things, Executive would be entitled to certain benefits if he terminated his employment for any reason within 30 days after a “Change in Control” as defined
therein; and 
 WHEREAS, the Corporation and Tower Bancorp, Inc., a Pennsylvania corporation having its principal office in
Greencastle, Pennsylvania (“Tower”), are parties to that certain Agreement and Plan of Merger dated as of November 12, 2008 (the “Merger Agreement”) pursuant to which the Corporation will merge with and into Tower, with
Tower as the surviving corporation (the “Merger”) and, upon the completion of the Merger, Greencastle will merge with and into the Bank and the Bank will become a wholly-owned subsidiary of Tower; 
 WHEREAS, the Merger will constitute a “Change in Control” of the Corporation and the Bank under the Change in Control Agreement;

 WHEREAS, the Corporation and the Bank consider the continued services of Executive to be in the best interests of the Corporation
and the Bank; and 
 WHEREAS, upon consummation of the Merger, Executive is to be employed as an Executive Vice President of the
Corporation and the Bank; and 
 WHEREAS, the Corporation, the Bank and Executive desire to enter into this Amendment in light of the
pending Merger and to ensure that the Agreement complies with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended. 
 NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, intending to be legally bound hereby, Executive, the
Corporation and the Bank agree as follows: 
 1. Upon consummation of the Merger, Executive shall be employed as Executive Vice President of
the Corporation and the Bank. 

 2. Executive hereby agrees that he shall not exercise his right pursuant to Section 5(a) of the
Employment Agreement to terminate his employment with the Bank within thirty (30) days of the Merger. Executive hereby irrevocably waives any entitlement to benefits under the Employment Agreement as a result of any such voluntary termination
should he breach his agreement in the foregoing sentence. 
 3. Effective on the date hereof, Section 3(e) of the Employment Agreement
is amended in its entirety, to read as follows: 
 (e) Disability. Executive, Corporation and Bank agree that if
Executive becomes Disabled, within the meaning of Section 409A of the Internal Revenue Code of 1986, and the regulations thereunder, and becomes eligible for employer-provided short-term and/or long-term disability benefits, or worker’s
compensation benefits, then Graystone Bank’s obligation to pay Executive his Annual Base Salary shall be reduced by the amount of the disability or worker’s compensation benefits received by Executive. 
 Executive, Corporation and Bank agree that if, in the judgment of the Corporation’s Board of Directors, the Executive is unable, as a
result of illness or injury, to perform the essential functions of his position on a full-time basis with or without a reasonable accommodation and without posing a direct threat to himself or others for a period of six months, the Corporation and
the Bank will suffer an undue hardship in continuing the Executive’s employment as set forth in this agreement. Accordingly, this Agreement shall terminate at the end of the six-month period, and all of Executive’s rights under this
Agreement shall cease, with the exception of those rights which Executive may have under the Bank’s benefit plans. 
 4. Effective on
the date hereof, Section 5(b) of the Employment Agreement defining the term “Change in Control” is amended in its entirety, to redefine “Change in Control”, to read as follows: 
 (b) As used in this Agreement, “Change in Control” of the Corporation or the Bank shall mean a change in the ownership or
effective control applicable to the Corporation or the Bank as described in Section 409A(a)(2)(A)(v) of the Internal Revenue Code of 1986, as amended (or any successor provision thereto) and the regulations thereunder. 
 5. Effective on the date hereof, the Employment Agreement is hereby amended to add a new Section 22 to read as follows: 
 22. Specified Employee Status. Notwithstanding anything in this Agreement to the contrary, in the event Executive is determined to
be a Specified Employee, as that term is defined in Section 409A, payments to such Specified Employee under paragraphs 6 or 7, other than payments qualifying as short term deferrals or an exempt separation pay arrangement under
Section 409A, shall not begin earlier than the first day of the seventh 

  

 - 2 - 

 
month after the date of termination. 
 For purposes of the foregoing, the date upon which a determination is made as to the Specified Employee status of the Executive, the Identification Date (as defined in Section 409A) shall be December 31. 
 6. Effective with the consummation of the Merger, the Employment Agreement is hereby amended so that all references therein to the Corporation shall be
deemed references to Tower, and Tower, as successor to Graystone Financial Corp., shall be responsible for all of the obligations of the Corporation to Executive under the Employment Agreement as specifically provided in Section 15(a) of the
Employment Agreement. 
 7. Effective upon consummation of the Merger, Section 8(a)(i) of the Employment Agreement is hereby amended and
restated in its entirety to revise the Non-Competition Area as follows: 
 (i) enter into or be engaged (other than by the Corporation or the
Bank), directly or indirectly, either for his own account or as agent, consultant, employee, partner, officer, director, proprietor, investor (except as an investor owning less than 5% of the stock of a publicly owned company) or otherwise of any
person, firm, corporation or enterprise engaged in (1) the banking (including bank holding company) or financial services industry, or (2) any other activity in which Corporation or Bank or any of their subsidiaries are engaged
during the Employment Period, in any county in which, at the date of termination of the Executive’s employment, a branch location, office, loan production office, or trust or asset and wealth management office
of Corporation, Bank, or any of their subsidiaries are located (“Non-Competition Area”); or 
 8. Except as amended
by this Amendment, the Employment Agreement shall continue in full force and effect and shall continue after consummation of the Merger. This Amendment may be executed in one or more counterparts, each of which shall be deemed to be an original but
all of which shall constitute one and the same agreement. 
 9. This Amendment shall be binding upon and inure to the benefit of the parties
hereto, their respective heirs, executors, administrators, successors and, to the extent permitted hereunder, assigns. 
 [signatures follow
on next page] 
  

 - 3 - 

 IN WITNESS WHEREOF, the parties have executed this First Amendment to Amended and Restated
Employment Agreement as of the day and year first above written. 
  

							
	ATTEST:	 		 	GRAYSTONE FINANCIAL CORP.
				
	 /s/ Carl D. Lundblad
	 		 	By:	 	 /s/ Andrew Samuel

	Secretary	 		 		 	Andrew Samuel, President and CEO
			
	ATTEST:	 		 	GRAYSTONE BANK
				
	 /s/ Carl D. Lundblad
	 		 	By:	 	 /s/ Andrew Samuel

	Secretary	 		 		 	Andrew Samuel, President and CEO
			
	WITNESS:	 		 	EXECUTIVE
			
	 /s/ Carl D. Lundblad
	 		 	 /s/ Janak Amin

		 		 	Janak Amin

 Consent and Acknowledgement 
 Tower Bancorp, Inc. (“Tower”), intending to be legally bound, hereby consents, as of the day and year first above written, to the foregoing
amendment of the employment agreement referenced therein (the “Agreement”) and hereby agrees that, upon consummation of the merger of Graystone Financial Corp. with and into Tower, with Tower as the surviving corporation, Tower shall
become the successor to Graystone Financial Corp. by operation of law and shall assume and thereafter perform all of the obligations of Graystone Financial Corp. under the Agreement as amended to the same extent as Graystone Financial Corp. would be
required to perform it if no such succession had taken place. 
  

							
	ATTEST:	 		 	TOWER BANCORP, INC.
				
	 /s/ John McDowell
	 		 	By:	 	 /s/ Jeff B. Shank

	Secretary	 		 		 	President and CEO

  

 - 4 -Graystone Finincial Corp. 401(k) / Employee Stock Ownership Plan

 Exhibit 10.9 
 GRAYSTONE BANK 
 401(K)/EMPLOYEE STOCK OWNERSHIP PLAN 
 EFFECTIVE AS OF JANUARY 1, 2006 
 AMENDED AND RESTATED 

 GRAYSTONE BANK 
 401(K)/EMPLOYEE STOCK OWNERSHIP PLAN 
 Table of Contents 
  

			
	 	  	Page
	 ARTICLE I
	  	
	 Definitions
	  	1
		
	 ARTICLE II
	  	
	 Rules Governing Participation
	  	8
		
	 ARTICLE III
	  	
	 Employer Contributions
	  	9
		
	 ARTICLE IV
	  	
	 Allocations to Participant’s Accounts
	  	20
		
	 ARTICLE V
	  	
	 Top-Heavy Plan Provisions
	  	26
		
	 ARTICLE VI
	  	
	 Vesting
	  	28
		
	 ARTICLE VII
	  	
	 Termination and Retirement
	  	30
		
	 ARTICLE VIII
	  	
	 Distribution Procedures
	  	31
		
	 ARTICLE IX
	  	
	 Voting Rights
	  	40
		
	 ARTICLE X
	  	
	 Administration
	  	41
		
	 ARTICLE XI
	  	
	 Rights of Employer
	  	46
		
	 ARTICLE XII
	  	
	 Rollovers
	  	47
		
	 ARTICLE XIII
	  	
	 Miscellaneous
	  	48

 GRAYSTONE BANK 
 401(K)/EMPLOYEE STOCK OWNERSHIP PLAN 
 THIS GRAYSTONE BANK 401(K)/EMPLOYEE STOCK OWNERSHIP PLAN
is adopted by GRAYSTONE BANK this 5 day of May, 2006, but effective as of January 1, 2006. 
 WITNESSETH: 
 WHEREAS, Graystone Bank adopted the Graystone Bank 401(k) Plan effective January 1, 2006; and 
 WHEREAS, Graystone Bank desires to add employee stock ownership plan features to the Graystone Bank 401(k) Plan effective January 1, 2006;
and 
 WHEREAS, the addition of employee stock ownership plan features requires that Graystone Bank amend and restate the Graystone
Bank 401(k) Plan effective January 1, 2006, said amended and restated plan to be named the Graystone 401(k)/Employee Stock Ownership Plan effective as of January 1, 2006. 
 NOW, THEREFORE, Graystone Bank hereby adopts the Graystone Bank 401(k) employee stock ownership plan, the employee stock ownership portions
intended to constitute a stock bonus plan qualified under Section 401(a) of the Code and intended to be an employee stock ownership plan under Section 4975(e)(7) of the Code and under Section 407(d)(6) of ERISA, as an amendment and
restatement of the Graystone Bank 401(k) Plan effective January 1, 2006. 
 ARTICLE I 
 DEFINITIONS 
 In this Plan, whenever
the context so indicates, the singular or plural number and the masculine, feminine or neuter gender shall be deemed to include the other. The following capitalized words and phrases shall have the meanings specified when used in the Plan and the
Trust Agreement, unless a different meaning is plainly required by the context. 
 Section 1.01 “Accrual Computation Period”
means the twelve-month period corresponding to the Plan Year. 
 Section 1.02 “Acquisition Loan” means a loan (or other
extension of credit) used by the Trustee to finance the acquisition of Company Stock, which loan constitutes an Exempt Loan. 
 Section 1.03 “Affiliated Employer” means any entity which, in relation with any entity constituting the Employer, constitutes (a) a “controlled group of corporations” within the meaning of Section 414(b)
of the Code, (b) a “group of trades or businesses under common control” within the meaning Section 414(c) of the Code, or (c) an “affiliated service group” within the meaning of Section 414(m) of the Code. An
entity shall be considered an Affiliated Employer only with respect to such period as the relationship described in the preceding sentence exists. When the term “Affiliated Employer” is used in Article IV of this Plan (and only when the
term is so used), Sections 414(b) and (c) of the Code shall be deemed modified by application of the provisions of Section 415(h) of the Code. 
 Section 1.04 “Age” means the chronological age attained by the Participant at his or her most recent birthday. 
  

 1 

 Section 1.05 “Alternate Payee” means any person entitled to current or future payment of
benefits under the Plan pursuant to a QDRO. 
 Section 1.06 “Anniversary Date” means the last day of each Plan Year.

 Section 1.07 “Beneficiary” means: 
 (a) Any Alternate Payee named in a QDRO to receive benefits in the event of the death of the Participant, to the extent of the rights
granted in such QDRO; 
 (b) As to any Participant who is married at the time of his or her death, the Participant’s
spouse, except as provided in Paragraph (c)(2) of this Section; 
 (c) As to any Participant who (1) is not married at
the time of his or her death, or (2) is married, but whose spouse has consented to the designation of a Beneficiary other than or in addition to himself/herself (to the extent of such consent), the persons or entities designated by the
Participant in writing to be his or her Beneficiaries hereunder; 
 (d) As to any Participant who dies not survived by a
spouse, whose death benefit is not subject to a QDRO, and who has not designated a Beneficiary (or who is not survived by any such designated Beneficiary), the following classes of takers, each class to take to the exclusion of all subsequent
classes, with all members of each class to share equally: 
 (1) Lineal descendants (including adopted persons and
step-children) per stirpes; 
 (2) Surviving parents; and 
 (3) The Participant’s estate. 
 Section 1.08 “Benefit Commencement Date” shall mean the date on which benefit distributions to the Participant (or to the Beneficiary of a deceased Participant) commence pursuant to a distributable event under the Plan.

 Section 1.9 “Board” means the board of directors of the Employer. 
 Section 1.10 “Break in Service” means failure by a Participant to complete more than five hundred (500) Hours of Service during any
Computation Period. 
 Section 1.11 “Code” means the Internal Revenue Code of 1986, as amended from time to time. 

Section 1.12 “Company Stock” means voting stock issued by GRAYSTONE BANK or any successor thereto, as defined in and which meets the
requirements of Sections 409(l) and 4975(e)(8) of the Code. 
 Section 1.13 “Company Stock Account” means that portion of a
Participant’s ESOP Account which consists of allocated Company Stock. 
 Section 1.14 “Compensation” means a
Participant’s form W-2 wages for personal services actually rendered in the course of employment with the Employer maintaining the plan including amounts that are not currently includable in the Participant’s taxable income by virtue of
Section 132(f)(4) of the Code, and Elective Contributions. “Elective contributions” are amounts excludable from the Employee’s gross income under Sections 125, 402(e)(3), 402(h), 403(b), 408(p), or 457(b) of the Code. The term
“Compensation” does not include Employer contributions contributed to this Plan (excluding contributions made by the Employer pursuant to an arrangement under Section 402(e)(3) or to any other 

  

 2 

 
retirement plan or plan of deferred compensation nor compensation received prior to the date a Participant was eligible to participate under the Plan.

 Section 1.15 “Computation Period” means the period designated as the Accrual Computation Period or the Eligibility
Computation Period, as indicated by the context of usage. 
 Section 1.16 “Current Obligations” means principal and interest
repayment obligations of the Trust for an Acquisition Loan for an applicable Plan Year. 
 Section 1.17 “Deferred Retirement
Date” means the date of a Participant’s retirement from the service of the Employer subsequent to his or her Normal Retirement Date. 
 Section 1.18 “Effective Date” of this amended and restated Plan is January 1, 2006. The “Original Effective Date” of the Plan if January 1, 2006. 
 Section 1.19 “Elective Deferrals” means a contribution as defined in Section 402(g)(3)(A) of the Code, made by a Participant and
allocated to a Participant’s Elective Deferral Account pursuant to Section 3.03. 
 Section 1.20 “Elective Deferral
Account” means the portion of a Participant’s Account comprised of Participant Elective Deferrals and earnings therefrom. 
 Section 1.21 “Eligibility Computation Period” means the period of twelve consecutive months commencing upon the Employee’s Employment Commencement Date and ending on a date one year later. Succeeding Eligibility
Computation Periods shall begin with the Plan Year which includes the first anniversary of an Employee’s Employment Commencement Date. 
 Section 1.22 “Employee” means any person in the employ of the Employer whose employment contemplates the rendition of service to the Employer, excluding, however, (i) Employees who are included in a unit of employees
covered by a collective bargaining agreement with respect to which retirement benefits were the subject of good faith negotiations; (ii) Employees who are non-resident aliens (within the meaning of Section 7701(b)(1)(B) of the Code) and
who receive no earned income (within the meaning of Section 911(d)(2) of the Code) from the Employer which constitutes income from sources within the United States; (iii) any person who provides services to the Employer as an independent
contractor. Employees of an Affiliated Employer shall not be eligible to participate in the Plan unless the Employer has consented to such participation and the Affiliated Employer has become a Participating Employer under the Plan. Employee shall
also exclude any Leased Employee. 
 Section 1.23 “Employee Stock Ownership Plan” or “ESOP” means a plan that meets
the requirements of Section 4975(e)(7) of the Code and Section 407(d)(6) of ERISA. 
 Section 1.24 “Employer” means
Graystone Bank or any successor entity by merger, purchase or consolidation, or otherwise, and includes also, with the consent of the Board of Directors of the Employer, an Affiliated Employer which has elected to adopt this Plan or a business
organization allied, associated, affiliated, interrelated or subsidiary to the Employer or succeeding to its respective businesses which shall assume the obligations of this Plan with respect to its employees by becoming a party to this Plan, as
provided for hereinafter. 
 Section 1.25 “Employment Commencement Date” means, with respect to any individual, the first date
on which that individual performs an Hour of Service for the Employer. 
 Section 1.26 “ERISA” means the Employee Retirement
Income Security Act of 1974 (P.L. 93-406), including all amendments thereto. 
  

 3 

 Section 1.27 “ESOP Account” means the interest of the Participant’s Account comprised
of his/her Company Stock Account and Investment Account. 
 Section 1.28 “ESOP Employer Contribution” means contributions made
to the Plan by the Employer pursuant to Section 3.01. 
 Section 1.29 “Exempt Loan” means a loan made to the Trust by a
disqualified person or a loan to the Trust which may be guaranteed by a disqualified person and which satisfies the requirements of Section 408 of ERISA and Section 4975 of the Code and regulations promulgated thereunder. 
 Section 1.30 “Fair Market Value” means value per share of Company Stock as determined in good faith pursuant to Section 4.04 and in
accordance with regulations promulgated pursuant to Section 3(18) of ERISA and Section 401(a)(28)(C) of the Code. 
 Section 1.31 “Financed Shares” means Company Stock acquired by the Trust with the proceeds of an Acquisition Loan and not yet allocated to the Company Stock Accounts of Participants. 
 Section 1.32 “Five-Percent Owner” shall mean, as to any entity, any person who owns (or is considered as owning within the meaning of
Section 318 of the Code, as modified by Section 416(i) of the Code) more than five percent (5%) of the outstanding voting stock of the Employer (or any entity constituting the Employer) or stock possessing more than five percent
(5%) of the total combined voting power of all of the stock of such entity. Where an entity is not a corporation, a person shall be considered a “Five-Percent Owner” if he/she owns more than five-percent (5%) of either the
capital or the profits interest in the entity. 
 Section 1.33 “Highly
Compensated Employee” means an Employee who satisfies the criteria of Section 414(q) of the Code and the regulations thereunder who generally: (a) was a “five percent (5%) owner” as defined in Section 1.30 at any
time during the determination year or the look-back year; or (b) for the look-back year had compensation determined under Section 3401(a) of the Code from the Employer greater than $80,000, as adjusted, and was among the most highly
compensated one-fifth ( 1/5) of all Employees. The determination year means the Plan Year for which testing is being
performed, and the look-back year means the immediately preceding twelve (12) month period. The number of Employees in the “the most highly compensated one-fifth ( 1/5) of all Employees” shall be determined by taking into account all individuals working for all Affiliated Employers, but excluding any individual who has not completed six
(6) months of service, who normally works fewer than 17 1/2 hours per week or in fewer than six months per year, who has not
reached age 21, whose employment is covered by a collective bargaining agreement, or who is a nonresident alien who receives no earned income from United States sources. The term Highly Compensated Employee also includes any former employee who
separated from service prior to the Plan Year, performs no services for the Employer during the Plan Year and was a Highly Compensated Employee either for the separation year or any Plan Year ending on or after his 55th birthday. 
 Section 1.34 “Hours of Service.” 
 An Employee will be credited with one Hour of Service for:

 (a) Each hour for which an Employee is paid, or entitled to payment, for the performance of duties for the Employer. These
hours shall be credited to the Employee for the Computation Period or periods in which the duties are performed; and 
 (b)
Each hour for which an Employee is paid, or entitled to payment, by the Employer, on account of a period of time during which no duties are performed (irrespective of whether the employment relationship has terminated) due to vacation, holiday,
illness, incapacity (including disability), layoff, jury duty, military duty or leave of absence. No more than 501 Hours of Service shall be credited under this paragraph for any single continuous period (whether or not such period occurs in a
single computation period). Hours under this paragraph shall be calculated and credited pursuant to Section 2530.200b-2 of the Department of Labor regulations which are incorporated herein by this reference; and 
  

 4 

 (c) Each hour for which back pay, irrespective of mitigation of damages, is either
awarded or agreed to by the Employer. The same Hours of Service shall not be credited both under paragraph (a) or paragraph (b), as the case may be, and under this paragraph (c). These hours shall be credited to the Employee for the computation
period or periods to which the award or agreement pertains rather than the computation period in which the award, agreement or payment is made. 
 (d) Hours of Service will be credited for employment with other members of an affiliated service group (under Section 414(m) of the Code), a controlled group of corporations (under Section 414(b) of the
Code), or a group of trades or businesses under common control (under Section 414(c) of the Code), of which the adopting Employer is a member. Hours of Service will also be credited for any individual considered an Employee for purposes of this
Plan under Section 414(n) of the Code. 
 (e) Solely for purposes of determining whether a Break in Service has occurred,
for participation and vesting purposes in a Computation Period, an individual who is absent from work for maternity or paternity reasons shall receive credit for the Hours of Service which would otherwise have been credited to such individual but
for such absence, or in any case in which such hours cannot be determined, eight (8) Hours of Service per day of such absence. For purposes of this paragraph, an absence from work for maternity or paternity reasons means an absence (1) by
reason of the pregnancy of the individual, (2) by reason of a birth of a child of the individual, (3) by reason of the placement of a child with the individual in connection with the adoption of such child by such individual, or
(4) for purposes of caring for such child for a period beginning immediately following such birth or placement. The Hours of Service credited under this paragraph shall be credited (1) in a Computation Period in which the absence begins if
the crediting is necessary to prevent a Break in Service in that period, or (2) in all other cases, in the following Computation Period. 
 (f) Hour of Service shall also include any service the Plan must credit in order to satisfy the crediting of service requirements of Section 414(u) of the Code. 
 The above provisions shall be construed so as to resolve any ambiguities in favor of crediting Employees with Hours of Service. 
 Section 1.35 “Independent Appraiser” means any appraiser as described in Section 401(a)(28)(C) of the Code. 
 Section 1.36 “Investment Account” means that portion of a Participant’s Account consisting of Employer contributions not invested in
Company Stock together with earnings and accretions. 
 Section 1.37 “Investment Manager” means any fiduciary (other than a
Trustee or Named Fiduciary) who has the power to manage, acquire, or dispose of any asset of the Plan and who has qualified as an “Investment Manger” within the meaning of Section 3(38) of ERISA. 
 Section 1.38 “Leased Employee” means any person who pursuant to an agreement between the recipient Employer and any other person or entity
(“leasing organization”) has performed services for the recipient (or for the recipient and related persons) on a fulltime basis for a period of at least one (1) year under direction of the recipient Employer. Contributions or
benefits provided a Leased Employee by the leasing organizations which are attributable to services performed for the recipient Employer shall be treated as provided by the recipient Employer. Compensation for a Leased Employee shall only include
Compensation from the leasing organization that is attributable to services performed for the recipient Employer. For purposes of the definition of Leased Employee, a Leased Employee is not considered an Employee of the recipient Employer:

  

 5 

 (a) if such employee is covered by a money purchase pension plan that has a nonintegrated
employer contribution rate of at least 10% of compensation as defined in Section 415(c)(3) of the Code and which provides for immediate eligibility and immediate vesting; 
 (b) if the Leased Employees do not constitute over 20% of the Employer’s non-Highly Compensated Employees. 
 Section 1.39 “Limitation Year” means the Plan Year or such other 12 calendar month period as may be designated by the Employer.

 Section 1.40 “Matching Contribution” means an Employer contribution as described in Section 401(m)(4)(A)(ii) of the
Code which is made to the Plan by the Employer pursuant to Section 3.03. 
 Section 1.41 “Matching Contribution Account”
means the portion of a Participant’s Account comprised of Matching Contributions and earnings therefrom. 
 Section 1.42
“Named Fiduciary” means the Employer, the Trustee and the Plan Administrative Committee. Each Named Fiduciary shall have only those particular powers, duties, responsibilities and obligations as are specifically delegated to him/her/it
under this Plan and/or the Trust Agreement. Any fiduciary, if so appointed, may serve in more than one fiduciary capacity. 
 Section 1.43 “Normal Retirement Age” means the date the Participant attains age 65. 
 Section 1.44 “Normal
Retirement Date” means the date the Participant attains Normal Retirement Age and terminates employment. 
 Section 1.45
“Participant” means an Employee who is eligible for participation in this Plan pursuant to the provisions of Article II. 
 Section 1.46 “Plan” means the GRAYSTONE BANK 401(k)/Employee Stock Ownership Plan as set forth herein, and as the same may from time to time hereafter be amended. 
 Section 1.47 “Plan Administrator” shall mean the Plan Administrative Committee established pursuant to Section 10.02 which is
responsible for the administration of the Plan. 
 Section 1.48 “Plan Entry Date” means each
January 1 April 1, July 1 and October 1. 
 Section 1.49 “Plan Sponsor” means Graystone Bank.

 Section 1.50 “Plan Year” means the twelve-month period commencing each January 1 and ending on the subsequent
December 31. 
 Section 1.51 “Qualified Domestic Relations Order” or “QDRO” means a Domestic Relations Order
which: 
 (a) assigns to, creates or recognizes the existence of an Alternate Payee’s right to receive all or a portion
of the benefits payable to a Participant hereunder; 
 (b) specifies (1) the name and last known mailing address (if any)
of the Participant and the name and mailing address of each Alternate Payee, (2) the amount or percentage of the Participant’s benefits to be paid to each Alternate Payee, or the manner in which such amount is to be determined,
(3) the number of payments or the period to which the order applies; and 
  

 6 

 (c) does not require (1) any form or type of benefit or any other option not
available under this Plan, (2) the Plan to provide benefits greater in value than the actuarial equivalent of the benefits otherwise provided hereunder and (3) any payment which would be in conflict with a payment required to be made to
another Alternate Payee under the terms of a prior Qualified Domestic Relations Order. 
 “Domestic Relations Order” means any
judgment, decree or order (including approval of a property settlement agreement) made pursuant to a state domestic relations or community property law, which relates to the provision of child support, alimony payments or property rights to an
Alternate Payee. 
 Section 1.52 “Qualified Nonelective Contributions” means an Employer contribution as described in
Section 3.04. 
 Section 1.53 “Qualified Nonelective Contribution Account” means the portion of the Participant’s
Account comprised of Qualified Nonelective Contributions and earnings therefrom. 
 Section 1.54 “Required Beginning Date” means the date benefits must commence to be distributed to a Participant in accordance with Section 401(a)(9) of the Code and the regulations promulgated thereunder. For
Participants who are not Five-Percent Owners, the Required Beginning Date is April 1 of the calendar year that follows the later of (a) the calendar year in which the Participant attains age 70 1/2, or (b) the calendar year in which the Participant retires. For Five-Percent Owners, the Required Beginning Date is April 1 of the calendar year that follows
the calendar year in which the Five-Percent Owner attains age 70 1/2. 
 Section 1.54 “Rollover/Transfer Contribution” means the portion of the Participant’s Account comprised of rollovers or transfers, and
earnings therefrom, as provided in Section 3.05. 
 Section 1.55 “Total Disability” means total and permanent disability
caused by bodily injury or disease which prevents a Participant from engaging in his normal and customary occupation or his employment; provided: 
 (a) Such disability shall be permanent and continuous during the remainder of the Participant’s lifetime in the opinion of a qualified licensed physician selected by the Plan Administrative Committee; and

 (b) Such disability was not contracted, suffered or incurred while the Participant was engaged in, or did not result from
his having engaged in a criminal activity; did not result from his habitual drunkenness or addiction to narcotics; did not result from a self-inflicted injury; or did not result from duty in the Armed Forces of the United States which prevented a
return to employment with the Employer. 
 Notwithstanding the foregoing, a Participant who qualifies for Social Security disability payments
shall be considered disabled for purposes of this Plan. 
 Section 1.56 “Trust” or “Trust Fund” means the trust fund
created under the Trust Agreement. 
 Section 1.57 “Trust Agreement” means the GRAYSTONE BANK 401(k)/Employee Stock Ownership
Trust Agreement as the same is presently constituted, as it may hereafter be amended, and such additional and successor trust agreements as may be executed for the purpose of providing for the management of the assets of the Plan. 
 Section 1.58 “Trust Assets” means Company Stock and other assets held in Trust for the benefit of Participants. 
  

 7 

 Section 1.59 “Trustee” means the party or parties serving under the Trust Agreement so
appointed by the Employer, including any successors. 
 Section 1.60 “Unallocated Suspense Account” means an account or
accounts containing Company Stock acquired with the proceeds of an Acquisition Loan which has not been released from such account and allocated to the Participants’ Company Stock Accounts. 
 Section 1.61 “Valuation Date” means the last day of the Plan Year (the “Annual Valuation Date”) for the ESOP Account and daily
for the 401(k) Account and each other interim dates during the Plan Year on which a valuation of the Trust Fund is made as determined by the Trustee. 
 Section 1.62 “Year of Participation” means any Accrual Computation Period in which the Participant completes at least one thousand (1,000) Hours of Service for the Employer and is employed on the
last day of the Accrual Computation Period. Any Participant who terminates employment with the Employer during the Plan Year after attaining Normal Retirement Age or terminates employment due to Total Disability or death shall be considered to have
completed a Year of Participation for such Plan Year. 
 Section 1.63 “Year of Service” means completion of an Eligibility
Computation Period or Accrual Computation Period in which the person completes at least one thousand (1,000) Hours of Service for the Employer, subject however for vesting purposes, to the provisions of Section 6.01(b). 
 ARTICLE II 
 RULES GOVERNING
PARTICIPATION 
 Section 2.01 Initial Eligibility. Any Employee who has attained age 21 and who has completed six
(6) consecutive months of service during which the Participant has completed at least five hundred (500) hours of service, shall be credited with a Year of Service for the Eligibility Computation Period and shall be eligible to participate
in the Plan on the Plan Entry Date coincident with or immediately following the date the Participant has satisfied both participation requirements. If a Participant does not satisfy the six (6) consecutive months of service requirement or the
five hundred (500) hours of service requirement the Participant shall be eligible to participate in the Plan on the Plan Entry Date coincident or immediately following the date the Participant attains age 21 and completes a Year of Service. Any
Employee who was employed by the Employer on the Plan’s Original Effective Date and prior to May 15, 2006, shall be eligible to participate in the Plan as of the Employee’s date of employment. 
 Section 2.02 Readmission after Breaks in Service and Employment Termination. 
 (a) Any Participant who has severed employment with the Employer and who becomes re-employed with the Employer shall become a Participant
as of his or her re-employment date. 
 (b) Any Employee who had not completed a Year of Service under Section 2.01 prior
to incurring a Break in Service shall become a Participant on the Plan Entry Date following the date he/she completes a Year of Service under Section 2.01 and attains age 21. 
  

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 ARTICLE III 
 EMPLOYER CONTRIBUTIONS 
 Section 3.01 ESOP Discretionary Contribution. 
 The Employer may, in its sole discretion, from time to time contribute with respect to the Plan Year, such amounts of cash or Company
Stock as it may determine. The ESOP Discretionary Contribution shall be allocated in proportion that each eligible Participant’s Compensation for the Plan Year bears to the total Compensation for all eligible Participants for the Plan Year in
accordance with Section 4.01. 
 Section 3.02 Elective Deferral Contributions. 
 (a) Amount of Contribution – The Employer shall contribute each Plan Year on behalf of each active Participant who elects to make
Elective Deferrals a sum equal to the amount that the Participant has elected to defer under a salary reduction election. The contribution shall be credited to the Participant’s Elective Deferral Account. 
 The Plan Administrator may limit the amount of Elective Deferrals at any time, if he determines that such limitation is necessary to meet
the requirements for a “qualified cash or deferred arrangement” under Code section 401(k) and regulations issued pursuant thereto as set forth in this Plan. 
 The Plan Administrator shall calculate the actual deferral percentage for the Highly Compensated Employees using the prior year testing
method. 
 In determining the actual deferral percentage and the average contribution percentage if matching contributions are
made under this Plan, the Plan Administrator shall exclude from consideration all eligible Employees (other than Highly Compensated Employees) who have not met the minimum age and service requirements of Section 410(a)(1)(A) of the Code in
accordance with Section 401(k)(3)(F) of the Code. 
 (b) Availability of Election – An active Participant may make
Elective Deferrals by completing a salary reduction agreement with the Employer under which an Employer contribution will be made to the Plan on behalf of such Participant only if he elects to reduce his compensation or to forgo an increase in his
compensation. The amount of salary deferral may range from 0% to 25% of Compensation subject to the annual limitations set forth under Section 402(g) of the Code. 
 Election Procedures – A notice of a Participant’s salary reduction election shall be given to the Employer and to the Plan
Administrator in the manner established by the Plan Administrator. The Plan Administrator shall provide a written notice to all Participants of the required procedures for making an election and the date as of which an election will be effective. A
Participant electing salary reduction will be deemed to desire to continue at the same rate, unless he notifies the Plan Administrator of his desire to change the amount of salary reduction. The revised election shall be effective in accordance with
the Plan Administrator’s published procedures. A salary reduction may be discontinued at any time upon proper notice in the manner established by the Plan Administrator. However, if a Participant receives a hardship distribution, his right to
elect a salary reduction shall be suspended for 16 months after the receipt of such distribution. Participant may not elect to make Elective Deferrals for his taxable year immediately following the taxable year of the hardship distribution in excess
of the applicable limit under Section 402(g) of the Code for such taxable year less the amount of such Participant’s salary reduction for the taxable year of the hardship distribution. 
 Catch-Up Contributions – All employees who are eligible to make elective deferrals under this Plan and who have attained age 50
before the close of the Plan Year shall be eligible to make catch-up contributions in accordance with, and subject tot the limitations of, Code Section 414(v). Such catch-up 

  

 9 

 
contributions shall not be taken into account for purposes of the provisions of the plan implementing the required limitations of the Code, Sections 402(g)
and 415 of the Code. The Plan shall not be treated as failing to satisfy the provisions of the Plan implementing the requirements of Sections 401(k)(11), 401(k)(12), 410(b), or 416 of the Code, as applicable, by reason of the making of such catch-up
contributions. 
 Section 3.03 Matching Contribution. The Employer may, in its discretion, contribute a Matching Contribution to
the Plan on behalf of each Participant who has made Elective Deferrals. The Matching Contribution shall be equal to a percentage of such Participant’s Elective Deferral, as determined for a Plan Year by the Employer in its discretion. The
Employer may, in its discretion, disregard Elective Deferrals that exceed a certain dollar amount or a certain percentage of Compensation for such period. 
 Section 3.04 Qualified Nonelective Contributions. The Employer may make Qualified Nonelective Contributions on behalf of either the non-highly compensated active Participants or all active Participants
that are sufficient to satisfy either the actual deferral percentage test or the average contribution percentage test, or both, pursuant to regulations under the Code in lieu of distributing excess contributions. The Employer may elect to comply
with Section 401(k)(12) of the Code by making safe harbor nonelective contributions on behalf of all active Participants. 
 Qualified
Nonelective Contributions are contributions (other than profit sharing Employer ESOP contributions or Matching Contributions) that are made by the Employer and allocated to Participants’ Qualified Nonelective Contribution Accounts and any
forfeitures that are so applied that the Participants may not elect to receive in cash until distributed from the Plan; that are nonforfeitable when made; and that are distributable only in accordance with the distribution provisions that are
applicable to Elective Deferrals. The amount of such contribution for any Plan Year shall be an amount determined by the Employer in its discretion after the Plan Administrator has determined the amount needed to satisfy the actual deferral
percentage test or the actual contribution percentage test, or both. Allocation of the Qualified Nonelective Contribution shall be made to the non-highly compensated employees with the smallest amounts of compensation for the Plan Year, beginning
with an allocation up to the Section 415 of the Code limitation to the non-highly compensated employee with the smallest amount of compensation and continuing in ascending order until all of the contribution has been allocated. For allocation
purposes, Compensation means compensation as defined in Section 1.14 for the entire Plan Year, except that for the Plan Year in which the Employee first becomes a Participant, Compensation means the Employee’s Compensation for the portion
of the Plan Year in which the Employee actually is a Participant. 
 Section 3.05 Rollover/Transfer Contributions. 
 (a) Rollover Contributions – A Participant may contribute to his rollover/transfer account any amounts that he previously received either as a lump
sum distribution (as defined in Section 402(e)(4)(D) of the Code) or within one taxable year as a distribution from another qualified plan on account of termination of that plan provided that: 
 (1) He transferred such distribution to an individual retirement account or annuity within sixty (60) days after receipt, or 
 (2) He transferred such distribution to this Plan within sixty (60) days after receipt. 
 Before accepting a rollover contribution, the Trustee may require an employee to furnish satisfactory evidence that the proposed transfer is in fact a
“rollover contribution” which the Code permits an Employee to make to a qualified plan. 
 (b) Transfer Contributions – With
the consent of the Plan Administrator, the Participant may have funds transferred directly to this Plan from another qualified plan. This Plan shall not accept any direct or indirect transfers from a defined benefit plan, money purchase plan
(including a target benefit plan), stock bonus or profit sharing plan that would otherwise have provided for a life annuity form of payment to a Participant. 
  

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 (c) Contributions Before Plan Entry Date – An Employee prior to satisfying the Plan’s
eligibility conditions, may make a rollover or transfer contribution to the Plan to the same extent and in the same manner as any Participant. 
 (d) Rollover/transfer contributions to the ESOP portion of the Plan shall be permitted for all Employees who became Participants in the Plan before May 15, 2006. Rollover/transfer contributions to the ESOP portion of the Plan shall be
invested in Company Stock when available. 
 Section 3.06 Forfeitures of Excess Aggregate Contributions. Excess aggregate
contributions which are determined under the average contribution percentage test and which are attributed to Employer Matching Contributions shall be distributed to the extent vested with a proportional amount of nonvested Employer Matching
Contributions being forfeited as of the last day of the Plan Year in which the excess arose. Forfeitures required for compliance with Section 401(a)(4) of the Code and Regulation Section 1.401(m)-1(e)(4) (because the contribution to which
it relates is treated as an excess deferral, excess contribution, or excess aggregate contribution) shall occur as of such date. 
 Section 3.07 Application of Contributions for Current Obligations Under an Acquisition Loan. If the Trust has Current Obligations under an Acquisition Loan, any form of contribution made to the Plan shall, to the extent
necessary, be applied by the Trustee toward satisfaction of such Current Obligations. If there is more than one Acquisition Loan, the Employer shall designate the Acquisition Loan to which any contribution is to be applied. In each Plan Year in
which Employer contributions are applied toward Current Obligations under an Acquisition Loan, shares of Company Stock acquired with such Acquisition Loan which are then held in the Unallocated Suspense Account shall be released for allocation among
the Participants in accordance with Section 4.01. If an Acquisition Loan provides for annual payments of principal and interest over a period of ten (10) or fewer years, the number of shares of Company Stock released for allocation shall
be calculated utilizing the principal only method described under Treasury Regulation Section 54.4975-7(b)(8)(ii). If an Acquisition Loan provides for annual payments of principal and interest over a period in excess of ten (10) years, the
number of shares of Company Stock released for allocation shall be calculated utilizing the principal and interest method described under Treasury Regulation Section 54.4975-7(b)(8)(i). 
 Section 3.08 Timing of Contributions. The Employer shall pay its contribution made with respect to any Plan Year to the Trustee on or before
the date established for the filing of the Employer’s federal income tax return (including any extensions of that date) for the fiscal year of the Employer ending with or within the Plan Year with respect to which such contribution is made.

 Section 3.09 Exclusive Benefit; Refund of Contributions. All contributions made by the Employer are made for the exclusive
benefit of the Participants and their Beneficiaries, and such contributions shall not be used for nor diverted to purposes other than for the exclusive benefit of the Participants and their Beneficiaries. Notwithstanding the foregoing, to the extent
that such refunds do not, in themselves, deprive the Plan of its qualified status, refunds of contributions shall be made to the Employer under the following circumstances and subject to the foregoing limitations: 
 (a) If the Internal Revenue Service determines that the Plan as initially adopted by an Employer does not meet the requirements of
Section 401(a) of the Code and the Company determines that the Plan should not be amended to meet the Internal Revenue Service’s requirements, a contribution made before the Internal Revenue Service’s determination shall be refunded,
provided that (1) the contribution is returned to the Employer within one year of the determination and (2) the qualification application is made by the time prescribed by law for filing the Employers’ return for the taxable year in
which the Plan is adopted or such later date as the Secretary of the Treasury may prescribe. 
 (b) In the case of a
contribution which is made in whole or in part by reason of a mistake of fact (for example, incorrect information as to the eligibility or Compensation of an Employee, or a mathematical error), so much of the Employer contribution as is attributable
to the mistake of fact shall be returnable to the Employer upon demand, upon presentation of evidence of 

  

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the mistake of fact to the Trustee and of calculations as to the impact of such mistake. Demand and repayment must be effectuated within one (1) year
after the payment of the contribution to which the mistake applies. 
 (c) The portion of a contribution that is disallowed as
an expense for federal income tax purposes may be refunded, provided that such amount is returned to the Employer within one year of the disallowance. 
 (d) If, upon termination of the Plan, amounts are held in a Section 415 of the Code suspense account which are attributable to the contributions of the Employer and such amounts may not be credited to the
accounts of Participants, upon the written direction of the Plan Administrative Committee, such amounts will be returned to that Employer as soon as practicable after the termination of the Plan. 
 In the event that any refund is paid to the Employer hereunder, such refund shall be made without interest and shall be deducted from among the
Investment Accounts of the Participants as an investment loss except to the extent that the amount of the refund can be identified to one or more specific Participants (as in the case of certain mistakes of fact) in which case the amount of the
refund identifiable to each such Participant’s Account shall be deducted directly from such Account. 
 All refunds pursuant to this
Section shall be limited in amount, circumstance and timing to the provisions of Section 403(c) of ERISA, if applicable, and no such refund shall be made if, solely on account of such refund, the Plan would cease to be a qualified plan pursuant
to Section 401(a) of the Code. 
 Section 3.10 Participants Contributions. No contribution shall be required of any
Participant. A Participant may make Elective Deferrals but may not make contributions on an after tax basis except as may be treated as a recharacterized contribution under Section 3.12. 
 Section 3.11 Limitations and Conditions Regarding Contributions. 
 (a) (1) Maximum Amount Under Code Section 402(g). No Participant shall be permitted to make Elective Deferrals made under this
Plan, or any other qualified plan maintained by the Employer, during any taxable year, in excess of the dollar limitation contained in Section 402(g) of the Code, in effect at the beginning of such taxable year, except to the extent permitted
under Section 3.02 and Section 414(v) of the Code, if applicable. 
 (2) Excess Elective Deferrals. A Participant
may assign to this Plan any excess Elective Deferrals made during a taxable year of the Participant by following the claim procedure set forth in Section 3.12(a)(3). Notwithstanding any other provision of the Plan, excess Elective Deferrals,
plus any income and minus any loss allocable thereto, shall be distributed no later than April 15 to any Participant to whose Elective Deferral Account excess Elective Deferrals were assigned for the preceding year and for whom excess Elective
Deferrals have been claimed for such taxable year. 
 (3) Claims. The Participant’s claim shall be in writing; shall be
submitted to the Plan Administrator no later than March 1, shall specify the Participant’s excess Elective Deferral amount for the preceding calendar year; and shall be accompanied by the Participant’s written statement that if such
amounts are not distributed, such excess deferral amount, when added to amounts deferred under other plans or arrangements described in Section 401(k), 408(k), 457, or 403(b) of the Code exceeds the limit imposed on the Participant by
Section 402(g) of the Code for the year in which the deferral occurred. 
 (4) Definitions – Elective Limitations

 (a) Elective Deferrals shall mean any employer contributions made to the Plan at the election of the Participant, in lieu
of cash compensation, and shall include contributions made pursuant to a salary reduction agreement. With respect to any taxable year, a Participant’s Elective 

  

 12 

 
Deferral is the sum of all employer contributions made on behalf of such Participant pursuant to an election to defer under any arrangement as described in
Section 401(k) of the Code, any simplified plan described in Sections 408(p) of the Code, Section 457 of the Code and Section 501(c)(18) of the Code and any employer contributions made on behalf of a Participant for the purchase of an
annuity contract under Section 403(b) of the Code pursuant to a salary reduction agreement. Elective deferrals shall not include any deferrals properly distributed as excess annual additions. 
 (b) Excess Elective Deferrals shall mean those Elective Deferrals that are includable in a Participant’s gross income under
Section 402(g) of the Code to the extent such Participant’s Elective Deferrals for a taxable year exceed the dollar limitation under the Code. Excess Elective Deferrals shall be treated as annual additions under the Plan, unless such
amounts are distributed no later than the first April 15 following the close of the Participant’s taxable year. 
 (5) Income or Loss 
 (a) Excess Elective Deferrals shall be adjusted for any income or loss for the
Participant’s taxable year. The income or loss allocable to excess Elective Deferrals shall be the income or loss allocable to the Participant’s Elective Deferrals Account for the taxable year multiplied by a fraction, the numerator of
which is such Participant’s excess Elective Deferrals for the Plan Year and the denominator is the Participant’s Elective Deferral Account balance attributable to Elective Deferrals without regarding to any income or loss occurring during
such taxable year. 
 (b) (1) Actual Deferral Percentage Test 
 The actual deferral percentage (hereinafter “ADP”) for the Plan Year for Participants who are Highly Compensated Employees for
the Plan Year and the prior year’s ADP for Participants who were non-highly compensated employees for the prior plan year must satisfy one of the following tests: (i) The ADP for the plan year for Participants who are Highly Compensated
Employees for the Plan Year shall not exceed the prior year’s ADP for Participants who were non-highly compensated employees for the prior plan year multiplied by 1.25; or (ii) the ADP for a Plan Year for Participants who are Highly
Compensated Employees for the Plan Year shall not exceed the prior year’s ADP for Participants who were non-highly compensated employees for the prior plan year multiplied by 2.0, provided that the ADP for Participants who are Highly
Compensated Employees does not exceed the ADP for Participants who were non-highly compensated employees in the prior plan year by more than two (2) percentage points. The ADP for the non-highly compensated employee group for the first Plan
Year shall be determined using the prior year testing method assuming a 3% deferral percentage for the non-highly compensated employee group. 
 The Plan may apply the ADP test by comparing the current Plan Year’s ADP for Participants who are Highly Compensated Employees with the current Plan Year’s ADP for Participants who are non-highly compensated
employees if the Employer so elects. In the alternative, the Plan may satisfy the requirements of Section 401(k)(3)(A)(ii) of the Code by meeting the safe harbor requirements of Section 401(k)(12) of the Code. Election of this method shall
be treated as an election to use the current year testing method. Once made, an election can only be revoked if the Plan meets the requirements for changing to the testing method as set forth in Notice 98-1 and any superseding guidance. Such
elections shall be reflected in Section 3.03. 
 A. Special Rules. 
 (i) A Participant is a Highly Compensated Employee for a particular Plan Year if he meets the definition of a Highly Compensated Employee
in effect for that Plan Year. A Participant is a non-highly compensated employee for a particular Plan Year if he does not meet the definition of a Highly Compensated Employee in effect for that Plan Year. 
  

 13 

 (ii) The ADP for any Participant who is a Highly Compensated Employee for the Plan Year
and who is eligible to have Elective Deferrals (and Qualified Non-elective Contributions or qualified Matching Contributions, or both, to the extent treated as Elective Deferrals for purposes of the ADP test) allocated to his or her accounts under
two or more arrangements described in Section 401(i) of the Code that are maintained by the Employer, shall be determined as if such Elective Deferrals (and, to the extent taken into account, such Qualified Non-elective Contributions or
qualified Matching Contribution, or both) were made under a single arrangement. If a Highly Compensated Employee participates in two or more cash or deferred arrangements that have different Plan Year’s all cash or deferred arrangements ending
with or within the same calendar year shall be treated as a single arrangement. Notwithstanding the foregoing, certain plans shall be treated as separate if mandatorily disaggregated under regulations under Section 401(k) of the Code.

 (iii) In the event that this Plan satisfies the requirements of Section 401(k), 401(a)(4) or 410(b) of the Code only
if aggregated with one or more other plans, or if one or more other plans satisfy the requirements of such sections only if aggregated with this Plan, then this Section 3.12 shall be applied by determining the ADP of employees as if all such
plans were a single plan. Any adjustments to the nonhighly compensated employee ADP for the prior year shall be made in accordance with Notice 98-1 and any superseding guidance, unless the Employer elects to use the current year testing method. For
Plan Year beginning after December 31, 1989, plans may be aggregated in order to satisfy Section 401(k) of the Code only if they have the same plan year. For plan years beginning after December 31, 1996, plans may be permissively
aggregated in order to satisfy Section 401(k) of the Code only if they use the same ADP testing method. 
 (iv) If:
(A) this Plan is not successor plan (as defined in Notice 98-1), (B) this Plan is not aggregated under Regulation Section 1.401(k)-1(g)(11) for such Plan Year with any other plan that was or that included a Section 401(k) of the
Code plan in the prior year, and (C) the first Plan Year commences after December 31, 1996; then, the case of the first Plan Year the amount treated as the ADP for participants who are non-highly compensated employees for the prior plan
year shall be 3%. 
 (v) For purposes of determining the ADP test,
Elective Deferrals, Qualified Nonelective Contributions and qualified Matching Contributions must be made before the last day of the twelve-month period immediately following the plan year to which contributions relate. An Elective Deferral shall be
taken into account only if it relates to compensation that either (a) would have been received by the Participant in the Plan Year but for the Deferral Election, or (b) is attributable to services performed by the Participant in the Plan
Year and would have been received by the Participant within 2 1/2 months after the last day of the Plan Year but for the Deferral
Election. 
 When the prior testing method is used, in order to be taken into account in calculating the ADP for
non-highly compensated employees for the prior year, a Qualified Nonelective Contribution or qualified Matching Contribution must be contributed by the end of the Plan Year. In order to be taken into account in calculating the ADP for Highly
Compensated Employees, such contributions must be contributed by the end of the twelve-month period immediately following the Plan Year. 
 (vi) The Plan Administrator shall maintain records sufficient to demonstrate satisfaction of the ADP test and the amount of Qualified Nonelective Contributions or qualified Matching Contributions, or both, used in
such test. 
 (vii) Qualified Nonelective Contributions may be taken into account as Elective Deferrals only to the extent
needed to meet the ADP test. Qualified Matching 

  

 14 

 
Contributions may be taken into account only to the extent such contributions are not needed to meet the average deferral percentage test unless it is the
intention of the Plan Administrator to test all Qualified Nonelective and Matching Contributions under the ADP test. 
 (viii) Applicable limitations when testing changes from current Plan Year testing to prior year testing: The ADP for the prior plan year shall be determined taking to account only: (A) Elective Contributions for non-highly compensated
employees that were taken into account for purposes of the ADP test in the prior plan year under the current Plan Year testing method and (B) Qualified Nonelective Contributions not previously taken into account under either the ADP or ACP
test. The determination and treatment of the ADP amounts of any Participant shall satisfy such other requirements as may be prescribed by the Secretary of the Treasury. 
 (B) Actual Deferral Percentage shall mean, for a specified group of Participants for a Plan Year, the average of the ratios
(calculated separately for each Participant in such group) of (1) the amount of Employer contributions actually paid over to the trust on behalf of such Participant for the Plan Year to (2) the Participant’s Compensation. The actual
deferral ratio of each Participant and the actual deferral percentage of each group shall be calculated to the nearest hundredth of a percentage point. Employer contributions on behalf of any Participant shall include: (1) any Elective
Deferrals made pursuant to the Participant’s deferral election, including excess Elective Deferrals of Highly Compensated Employees, but excluding (a) excess Elective Deferrals of nonhighly compensated employees that arise solely from
Elective Deferrals made under the Plan or plans of this Employer and (b) Elective Deferrals that are taken into account in the average contribution percentage test (provided the ADP test is satisfied both with and without exclusion of these
elective deferrals); and (2) at the election of the Employer, Qualified Nonelective Contributions and qualified Matching Contributions. For purposes of computing actual deferral percentages, an Employee who would be a Participant but for the
failure to make Elective Deferrals shall be treated as a Participant on whose behalf no Elective Deferrals are made. Amounts distributed as a result of Section 415 of the Code shall not be included in the calculation. 
 (2) Distribution of Excess Contributions 
 Notwithstanding any other provision of this Plan, excess contributions, plus any
income and minus any loss allocable thereto, shall be distributed no later than the last day of each Plan Year to Participants to whose accounts such excess contributions were allocated for the preceding Plan Year. If such excess amounts are
distributed more than 2 1/2 months after the last day of the plan Year in which such excess amounts arose, a 10% excise tax will
be imposed on the Employer maintaining the Plan with respect to such amounts. Excess contributions shall be allocated to the Highly Compensated Employees with the largest amounts of contributions taken into account in calculating the ADP test for
the Plan Year in which the excess arose, beginning with the Highly Compensated Employee with the largest amount of such contributions and continuing in descending order until all of the excess contributions have been allocated. For the purpose of
the preceding sentence, the largest amount is determined after the distribution of any excess contributions. 
 Excess
contributions (including the amounts recharacterized) shall be treated as annual additions under the plan. 
  

 15 

 (A) Determination of Income or Loss – Excess contributions shall be adjusted for any
income or loss for the Plan Year. The income or loss allocable to excess contributions allocated to each Participant is the income or loss allocable to the Participant’s Elective Deferral Account (and, if applicable, the Qualified Nonelective
Contribution Account or the Employer Matching Contribution Account or both) for the plan year multiplied by a fraction, the numerator of which is such Participant’s excess contributions for the Plan Year and the denominator is the
Participant’s account balance(s) attributable to Elective Deferrals (and Qualified Nonelective Contributions or qualified Matching Contributions, or both, if any of such contributions are included in the ADP test) without regard to any income
or loss occurring during such Plan Year. 
 (B) Accounting for Excess Contributions – Excess contributions allocated to a
Participant shall be distributed from the Participant’s Elective Deferral Account and Qualified Employer Matching Contribution Account (if applicable) in proportion to the Participant’s Elective Deferrals and qualified matching
contributions (to the extent used in the ADP test) for the Plan Year. Excess contributions shall be distributed form the Participant’s Qualified Nonelective Contribution Account only to the extent that such excess contributions exceed the
balance in the Participant’s Elective Deferral Account and Employer Matching Contribution Account. 
 (C) Excess
Contributions shall mean, with respect to any Plan Year, the excess of: (i) The aggregate amount of Employer contributions actually taken into account in computing the ADP of Highly Compensated Employees for such Plan Year, over (ii) The
maximum amount of such contributions permitted by the ADP test (determined by hypothetically reducing contributions made on behalf of Highly Compensated Employees in order of the ADPs, beginning with the highest of such percentages). 
 Such determination shall be made after first determining excess elective deferrals pursuant to this Section 3.12. 
 (3) Recharacterization 
 Participant may treat excess contributions allocated to him as an amount distributed to the Participant and then contributed by the Participant to the Plan as an Employee Nondeductible contribution. The excess
contributions subject to such treatment shall be the excess contribution allocated to the Participant as a Highly Compensated Employee under the distribution allocation procedure described in Section 5.6(b)(2) of the Code. Recharacterized
amounts will remain nonforfeitable and subject to the same distribution requirements as Elective Deferrals. Therefore, such recharacterized amounts shall be held in a recharacterized funds account that shall be invested and otherwise accounted for
in the same manner as an Elective Deferral Account but that shall be subject to the ACP test. Amounts may not be recharacterized by the Highly Compensated Employee to the extent that such amount in combination with other nondeductible contributions
made by that Employee would exceed any stated limit under the Plan on Employee nondeductible contributions. 
 Recharacterization must occur no later than two and one-half months after the last day of the plan Year in which such excess contributions arose and is deemed to occur no earlier than the date the last Highly Compensated Employee is
informed in writing of the amount recharacterized and the consequences thereof. Recharacterized amounts will be taxable to the Participant for the Participant’s tax year in which the Participant would have received them in cash under cash or
deferred arrangement. 
 (b) (1) Limitations on Employee Contributions and Matching Contributions. 
 The average contribution percentage (hereinafter “ACP”) for a Plan Year for Participants who are Highly Compensated Employees
for the Plan Year and the prior year’s ACP for Participant who were nonhighly compensated employees for the prior plan year must satisfy one of the following tests: (i) The ACP for the Plan Year for Participants who are Highly Compensated

  

 16 

 
Employees for the Plan Year shall not exceed the prior year’s ACP for Participants who were nonhighly compensated employees for the prior plan year
multiplied by 1.25; or (ii) The ACP for the Plan Year for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the prior year’s ACP for participants who were nonhighly compensated employees for the prior
plan year multiplied by two (2), provided that the ACP for Participants who are Highly Compensated Employees does not exceed the ACP for Participants who were non-highly compensated employees in the prior plan year by more than two
(2) percentage points. 
 The Plan may apply the ACP test by comparing the current plan year’s ACP for
Participant’s who are Highly Compensated Employees with the current plan year’s ACP for Participants who are non-highly compensated employees if the Employer so elects. In the alternative, the Plan may satisfy the requirements of
Section 401(m)(2) of the Code as it applied to employer matching contributions by meeting the safe harbor requirements of Section 401(m)(11) of the Code. Election of this method shall be treated as an election to use the current year
testing method. Once made, an election can only be undone if the Plan meets the requirements for changing to the testing method as set forth in Notice 98-1 and any superseding guidance. Such elections shall be reflected in Section 3.02 and
3.04. 
 (A) Limitations Under Code Section 401(m) 
 (i) A Participant is a Highly Compensated Employee for a particular Plan Year if he meets the definition of Highly Compensated Employee
in effect for the Plan Year. A Participant is a nonhighly compensated employee for a particular Plan Year if he does not meet the definition of a Highly Compensated Employee in effect for that Plan Year. 
 (ii) For purposes of this Section 3.12(c), the contribution percentage for any Participant who is a Highly Compensated Employee and
who is eligible to have contribution percentage amounts allocated to his or her account under two or more plans describe din Section 401(a) of the Code, or arrangements described in Section 401(k) of the Code that are maintained by the
Employer, shall be determined as if the total of such contribution percentage amounts were made under each plan. If a Highly Compensated Employee participates in two or more cash or deferred arrangements that have different Plan Years, all cash or
deferred arrangements ending with or within the same calendar year shall be treated as a single arrangement. Notwithstanding the foregoing, certain plans shall be treated as separate if mandatorily disaggregated under regulations under
Section 401(m) of the Code. 
 (iv) In the event that this Plan satisfied the requirements of Section 401(m),
401(a)(4) or 410(b) of the Code only if aggregated with one or more other plans, or if one or more other plans satisfy the requirements of such sections only if aggregated with this Plan, then this Section 3.12(c)(1) shall be applied by
determining the contribution percentage of employees as if all such plans were a single plan. Any adjustments to the nonhighly compensated employee ACP for the prior year shall be made in accordance with Notice 98-1 and any superseding guidance,
unless the Employer elects to use the current year testing method. Plans may be aggregated in order to satisfy Section 401(m) of the Code only if they have the same Plan Year. Plans may be permissively aggregated in order to satisfy
Section 401(m) of the Code only if they use the same ACP testing method. 
 (v) If: (A) this Plan is not a
successor plan (as defined in Notice 98-1, Section V or subsequent guidance), (B) this plan is not aggregated under Regulation section 1.401(m)-1(g)(14) for such Plan Year with any other plan that was or that included a Section 401(m) of
the Code plan in the prior year, and (C) the first plan year commences after December 31, 1996; then, in the case of the first plan year the amount treated as the ACP for Participants who are non-highly compensated employees for the prior
plan year 

  

 17 

 
shall be 2% or, if the Employer so elects, the ACP for Participants who are non-highly compensated employees as calculated for such first Plan Year.

 (vi) For purposes of determining the contribution percentage test, employee contributions are considered to have been made
in the Plan Year in which contributed to the trust. Matching Contributions and Qualified Nonelective Contributions will be considered made for a Plan Year is made no later than the end of the twelve-month period beginning on the date after the close
of the Plan Year. 
 When the prior year testing method is used, in order to be taken into account in calculating the ACP for
non-highly compensated employees for the prior year, a Qualified Nonelective Contribution or Matching Contribution must be contributed by the end of the Plan Year. In order to be taken into account in calculation the ACP for Highly Compensated
Employees, such contributions must be contributed by the end of the twelve-month period immediately following the Plan Year. 
 (vii) The Plan Administrator shall maintain records sufficient to demonstrate satisfaction of the ACP test and the amount of Qualified Nonelective Contributions or qualified Matching Contributions, or both, used in such test. 
 (viii) Employee Elective Deferrals may be taken into account; however, the ADP test shall be met before any elective deferrals are used
in the ACP test and the elective Deferrals needed to meet the ADP test shall not be used to meet the ACP test. Qualified Nonelective Contributions shall be taken into account to the extent such contributions are not used to meet the ADP test.

 (ix) Applicable limitations when testing changes from current year testing to prior year testing: The ACP for the prior
plan year shall be determined taking into account only: (A) employee contributions for non-highly compensated employees made for the prior plan year, (B) Matching contributions for non-highly compensated employees that were taken into
account for purposes of the ACP test in the prior plan year under the current plan year testing method, and (C) Qualified Nonelective Contributions not previously taken into account under either the ADP or ACP test. 
 (x) The determination and treatment of the contribution percentage of any Participant shall satisfy such other requirements as may be
prescribed by the Secretary of the Treasury. 
 (xi) In performing the ADP and ACP tests, the Plan will apply the current
year testing method for years after the first Plan Year. 
 (B) Definitions 
 (i) Aggregate Limit shall mean the sum of (i) 125% of the greater of the ADP of the non-highly compensated employees of the prior
plan year or the ACP of non-highly compensated employees under the Plan subject tot Code section 401(m) for the Plan Year beginning with or within the prior plan year of the 401(k) plan and (ii) the lesser of 200% or two plus the lesser of such
ADP or ACP. “Lesser” is substituted for “greater” in (i) above, and “greater” is substituted for “lesser” after “two plus the” in (ii) if it would result in a larger aggregate limit. If the
Employer elects the use of the current year testing method, then, in calculating the aggregate limit for a particular plan year, the non-highly compensated employees’ ADP and AC for that plan year is used in place of the ADP and ACP for the
prior plan year. 
  

 18 

 (ii) Average Contribution Percentage shall mean the average of the contribution
percentages of the eligible participants in a group. 
 (iii) Contribution Percentage shall mean the ratio (expressed as a
percentage calculated to the nearest hundredth of a percentage point) of the Participant’s contribution percentage amounts to the Participant’s Compensation. 
 (iv) Contribution Percentage Amounts shall mean the sum of the employee nondeductible contributions, Employer Matching Contributions and
employee 401(k) Elective Deferrals (to the extent not taken into account for purposes of the ADP test) made under the Plan on behalf of the Participant for the Plan Year. Such contribution percentage amounts shall not include Matching Contributions
that are forfeited either to correct excess aggregate contributions, or because the contributions to which they relate are excess deferrals, excess contributions, or excess aggregate contributions. Qualified Nonelective Contributions may be included
in the contribution percentage amounts. Employee 401(k) Elective Deferrals may also be used in calculating the contribution percentage amounts so long as the ADP test is met before the elective deferrals are used in the ACP test and the ADP test
continues to be met following the exclusion of those elective deferrals that are used to meet the ACP test. The contribution percentage amounts shall be calculated to the nearest hundredth of a percentage point. Amounts distributed under
Section 5.1(a)(4)(A) and (B) shall not be included in the calculation. 
 (v) Eligible Participant shall mean any
Employee who is eligible to make an employee nondeductible contribution, or an Elective Deferral (if the employer takes such contributions into account in the calculation of the contribution percentage), or to receive an Employer Matching
Contribution (including forfeitures). 
 (vi) Employee Nondeductible Contribution (or employee contribution) shall mean any
contribution made under the Plan by or on behalf of a Participant that is included in the Participant’s gross income in the year in which made and that is maintained under a separate account to which earnings and losses are allocated.

 (vii) Matching Contribution shall mean an Employer contribution made to this or any other defined contribution plan on
behalf of a participant on account of an employee nondeductible contribution made by such participant, or on account of a Participant’s Elective Deferral, under a Plan maintained by the employer. 
 (2) Distribution. Notwithstanding any other provision of this Plan, excess
aggregate contributions, plus any income and minus any loss allocable thereto, shall be forfeited, if forfeitable, or if not forfeitable, distributed not later than the last day of each Plan Year to Participants to whose accounts such excess
aggregate contributions were allocated for the preceding plan year. Excess aggregate contributions shall be allocated to the Highly Compensated Employees with the largest contribution dollar amounts taken into account in calculating the ACP test for
the Plan Year in which the excess arose, beginning with the Highly Compensated Employee with the largest dollar amount of such contributions and continuing in descending order until all of the excess aggregate contributions have been allocated. For
the purpose of the preceding sentence, the largest amount is determined after the distribution of any excess contributions. If such excess aggregate contributions are distributed more than 2 1/
2 months after the last day of the Plan Year in which such excess amounts arose, a 10% excise tax will be imposed on the employer maintaining the plan with respect to those amounts.
Excess aggregate contributions shall be treated as annual additions under the Plan. 
 (A) Determination of Income or
Loss – Excess aggregate contributions shall be adjusted for any income or loss for the Plan Year. The income or loss allocable to excess aggregate contributions allocated to each Participant is the income or loss allocable to the
Participant’s employee nondeductible contribution account. Employer ESOP and Matching Contribution Account 

  

 19 

 
(if any, and if all amounts therein are not used in the ADP test) and, if applicable Qualified Nonelective Contribution account and Employee Elective
Deferral Account for the Plan Year multiplied by a fraction, the numerator of which is such Participant’s excess aggregate contributions for the year and the denominator is the Participant’s account balance(s) attributable to contribution
percentage amounts with regard to any income or loss occurring during such Plan Year. 
 (B) Forfeitures of Excess Aggregate
Contributions – Forfeitures of excess aggregate matching contributions may either be reallocated to the accounts of non-highly compensated employees or applied to reduce employer contributions, as provided in Section 3.02 or 3.04.

 (C) Accounting for Excess Aggregate Contributions – Excess aggregate contributions allocated to a Participant shall be
forfeited, if forfeitable or distributed on a pro-rata basis from the Participant’s employee nondeductible contribution account and Employer Matching Contribution account (and, if applicable, the participant’s qualified nonelective
contribution account or Employee Elective Deferral Account, or both). 
 (D) Excess Aggregate Contributions shall mean, with
respect to any Plan Year, the excess of: (i) The aggregate contribution percentage amounts taken into account in computing the numerator of the contribution percentage actually made on behalf of Highly Compensated Employees for such plan year,
over (ii) The maximum contribution percentage amounts permitted by the ACP test (determined by hypothetically reducing contributions made on behalf of Highly Compensated Employees in order of their contribution percentages beginning with the
highest of such percentages). 
 (3) Required Forfeitures – Any employer matching contribution attributable to an excess
Elective Deferral. 
 ARTICLE IV 
 ALLOCATIONS TO PARTICIPANT’S ACCOUNTS 
 Section 4.01 Allocation Procedures. 
 (a) The Plan shall establish and maintain an account in the name of each Participant to which the Plan Administrative Committee shall
credit as of each Anniversary Date all amounts allocated to each such Participant. 
 (b) The Employer shall provide the Plan
Administrative Committee with all information necessary for the Plan to make a proper allocation of the Employer contributions for the Plan Year. 
 (c) With respect to an ESOP Discretionary Contribution, the Company Stock Account of each Participant will be credited as of each Anniversary Date with his allocable shares of Company Stock (including fractional
shares) purchased and paid for by the Trust or contributed in kind by the Employer, Financed Shares released from the Unallocated Suspense Account, forfeitures of Company Stock and stock dividends paid in the form of shares of stock on Company Stock
held in his Company Stock Account. The Investment Account of each Participant so entitled will be credited (or debited) as of each Anniversary Date with his share of the net income (or loss) of the Trust, cash dividends on Company Stock in his
Company Stock Account and Employer contributions and forfeitures in a form other than Company Stock. It will be debited for any payments on purchases of Company Stock by the Trust or for repayment of Current Obligations under an Acquisition Loan.

  

 20 

 (d) Forfeitures of nonvested amounts from any ESOP Discretionary Account shall be
allocated as additional discretionary contributions to those respective Employer contributions and allocated to Participants who have completed a Year of Participation for the applicable Plan Year of forfeiture reallocation. Forfeitures of nonvested
amounts from any Matching Contributions Accounts shall be applied as an additional Matching Contribution, as applicable, in the Plan Year in which the forfeiture occurs. 
 Section 4.02 Dividends on Company Stock. Dividends or distributions on Company Stock credited to Participants’ Accounts which are received by the Trustee in the form of cash shall, at the direction of
the Plan Administrative Committee, either (i) be credited to the Participants’ Investment Accounts, (ii) be distributed to Participants immediately or within ninety (90) days after the close of the Plan Year in proportion with a
Participant’s Company Stock Account, or (iii) be used to make payments on any related Acquisition Loan. When all or a part of a dividend or distribution payment on Company Stock held in the Participants’ Company Stock Accounts is used
to reduce the principal and interest due on an Acquisition Loan, Company Stock with a fair value equal to or greater than the amount of the dividend or distribution used to reduce the principal and interest due on the Acquisition Loan shall be
released from the Unallocated Suspense Account and shall be allocated to the Participants’ Company Stock Accounts. Company Stock released from the Unallocated Suspense Account with cash dividends or distributions and cash dividends or
distributions on Company Stock from the unallocated Suspense Account not released shall be allocated to each Participant’s Company Stock Account in the same manner as described in Section 4.01(b). Dividends or distributions attributable to
Company Stock credited to Participants’ Accounts and dividends or distributions attributable to Company Stock in the Unallocated Suspense Account may be used by the Trust to make payments on a related Acquisition Loan as directed by the Plan
Administrator. 
 Section 4.03 Participant Accounts. The Plan Administrative Committee shall establish and maintain separate
individual accounts for each Participant in the Plan. Separate accounts shall be maintained for all inactive Participants who have an interest in the Plan. Such separate accounts shall not require a segregation of the Trust assets and no Participant
shall acquire any right to or interest in any specific asset of the Trust as a result of the allocations provided for in the Plan. All allocations will be made as of the Anniversary Date referred to in this Article. 
 Section 4.04 Allocation of Investment Results (Non-ESOP Accounts). 
 (a) General Allocation Procedures. Investment income and market value appreciation or depreciation shall be allocated to each
account of each Participant who has accrued benefits in proportion to the respective account balances on each accounting date. For this purpose, each account balance shall be equal to the average balance for the period commencing on the day
following the prior accounting date and ending on the current accounting date. 
 (b) Investment Elections. A
Participant may elect to have all of his accounts with the exception of his Employer ESOP Contribution Account invested in such investment fund or combination of investment funds as may be established by the Trustee and made available for the
benefit of participants; provided, however, that in no event may the Participant direct that any portion of his account(s) be invested in collectibles (as defined in Section 408(m) of the Code). A Participant’s investment election shall
not apply to any portion of any account that may be invested in a participant loan sub-account, to the extent permitted under the Plan. The investment results shall be allocated to the participant’s account(s) based upon earnings and losses on
the participant’s share in such investment fund or funds. 
 The terms and conditions for investment direction shall be
established by the Plan Administrator. An election may be revoked only by another election and will remain in effect until such revocation. If no initial election is timely received by the plan administrator, the plan administrator shall invest the
account in a fund designated for such purpose. 
 Section 4.05 Allocation of Investment Results (ESOP Accounts). The Trust Fund
shall be valued on the Anniversary Date of each Plan Year, which date shall be known as the annual Valuation Date, and on such other special date as determined by the Trustee. 
  

 21 

 (a) Independent Appraiser. The Trust’s Independent Appraiser shall value the
Company Stock as of each annual Accounting Date. Such valuation shall be reviewed and finalized by the Trustee in accordance with Section 3(18) of ERISA. Based upon such valuation, the Trustee shall re-value the Participants’ Company Stock
accounts so as to reflect to each such account a proportionate share in any increase or decrease in the Fair Market Value of the Company Stock in the Trust Fund as of that date. 
 (b) Net Income (or Loss) of the Trust. The net income (or loss) of non-Company Stock assets of the Trust will be determined at
least annually as of the annual Valuation Date. A share thereof will be allocated to each Participant’s Investment Account in the ratio in which the balance of his Investment Account on the preceding Anniversary Date bears to the sum of the
balances for the Investment Accounts of all Participants on that date. The net income (or loss) includes the increase (or decrease) in the fair market value of assets of the Trust (other than Company Stock in the Company Stock Accounts), interest,
dividends, other income and expenses attributable to assets in the Investments Accounts since the preceding Valuation Date. It does not include the interest paid under any installment contract for the purchase of Company Stock by the Trust or on any
loan used by the Trust to purchase Company Stock. 
 (c) Equitable Allocations. The Plan Administrative Committee shall
establish accounting procedures for the purpose of making the allocations, valuations and adjustments to Participant’s Accounts provided for in this Article. Should the Plan Administrative Committee determine that the strict application of its
accounting procedures will not result in an equitable and non-discriminatory allocation among the Accounts of Participants, it may modify its procedures for the purpose of achieving an equitable and nondiscriminatory allocation in accordance with
the general concepts of the Plan and the provisions of this Article, provided however that such adjustments to achieve equity shall not reduce the vested portion of a Participant’s interest. 
 Section 4.06 Section 1042 Company Stock Transactions-Nonallocation Rule. 
 (a) No Trust assets acquired in an acquisition of Company Stock in which Section 1042 of the Code is elected by a seller of Company
Stock to the Plan and consented to by the Employer may accrue or be allocated for the period beginning on the date of the sale of the Company Stock and ending on the later of the date which is ten (10) years after the date of sale or the date
of the Plan allocation attributable to the final payment of the Acquisition Loan incurred in connection with such sale: 
 (1)
for the benefit of : 
 (i) any taxpayer who makes an election under Section 1042(a) of the Code with respect to Company
Stock, 
 (ii) any individual who is related to the taxpayer (within the meaning of Section 267(b) of the Code); or

 (2) for the benefit of any other person who owns (after application of Section 318(a) of the Code applied without
regard to the employee trust exception in Section 318(a)(2)(B)(i) of the Code) more than 25% (measured (A) at any time during the 12-month period ending on the date of the sale of the Company Stock to the Plan or (B) at the date the
Company Stock is allocated to Participants) of: 
  

 22 

 (i) any class of outstanding stock of the Employer or Affiliated Employer which issued
such Company Stock; or 
 (ii) the total value of any class of outstanding stock of the Employer or Affiliated Employer.

 (b) Section 4.05(a)(1)(ii) shall not apply to lineal descendants of the taxpayer if the aggregate amount allocated to
the benefit of all such lineal descendants during the non-allocation period described in Section 4.05(a) above does not exceed more than five percent (5%) of the Company Stock held by the Plan which is attributable to the sale to the Plan
by the person related to such descendants. 
 Section 4.07 Binding Effect of Valuation and Determination of Participant’s
Equities. The valuation and the determination of the equities of the Participants shall be final, conclusive and binding upon every party to this Plan, and upon every person beneficially interested in this Plan. The valuations, allocations and
determination shall be made in a nondiscriminatory manner. 
 Section 4.08 Certification of Employee Data and Time for
Allocation. The Employer shall as of each Anniversary Date confirm with the Plan Administrative Committee those employees eligible to participate in the Plan for the Plan Year. 
 Section 4.09 Participant’s Annual Statement. As soon as possible after each Anniversary Date, each Participant will receive a written
statement showing as of the Anniversary Date and in comparative form for the prior year: 
 (a) The balance in each of his
accounts as of the preceding Anniversary Date. 
 (b) The amount of Employer contributions and forfeitures allocated to his
accounts for the year. 
 (c) The adjustment to his accounts to reflect his share of dividends and the income and expenses of
the Trust for the year. 
 (d) The new balances in each of his accounts, including the number of shares of Company Stock.

 (e) Such other information as may be required under ERISA and regulations thereunder. 
 Section 4.10 Basis of Distributions. All distributions due to be made under this Plan, whether because of death, Total Disability,
retirement, termination of employment or any other reason set forth in the Plan, if distribution is available at that time, shall be made on the basis of the amount to the credit of the Account of the Participant as of the Valuation Date coincident
with or immediately preceding the date of distribution; excepting that, if any such distribution is to occur after the Anniversary Date of any year and before an allocation has been made to the Account of the Participant from the Employer’s
contribution made as of such Anniversary Date, it shall also include the amount allocable to him/her out of that contribution. 
  

 23 

 Section 4.11 Annual Additions. 
 (a) Notwithstanding any provision of the Plan to the contrary, the maximum annual additions credited to a Participant’s Accounts for
any Limitation Year shall not exceed the lesser of: (i) $40,000 (adjusted annually as provided in Section 415(d) of the Code) or (ii) one hundred percent (100%) of the Participant’s “Section 415 Compensation” for
such Limitation Year. If the Employer contribution that would otherwise be contributed or allocated to the Participant’s Accounts would cause the annual additions for the Limitation Year to exceed the maximum annual additions, the amount
contributed or allocated will be reduced so that the annual additions for the Limitation Year will equal the maximum annual additions. Any amount in excess of the maximum annual addition which would have been allocated to such Participant may be
allocated to other Participants. If the Limitation Year is a short Limitation Year, the $40,000 dollar limitation shall be reduced by a fraction, the numerator of which is the number of full months in the short Limitation Year and the denominator of
which is twelve (12). 
 (b) For purposes of the Plan, “Section 415 Compensation” means a Participant’s wages
as described under Section 3401(a) of the Code and all other payments of compensation by the Employer for a Plan Year for which the Employer is required to furnish the Participant a written statement under Sections 6041(d), 6051(a)(3) and 6052
of the Code. Section 415 Compensation shall include elective deferrals (as defined in Section 402(g)(3) of the Code), and any amount which is contributed or deferred by the Employer at the election of the Participant and which is not
includible in the gross income of the Participant by reason of Sections 125 and 132(f)(4) of the Code. 
 (c) The term
“annual addition” means the sum credited to a Participant’s accounts for any Limitation Year including employer contributions, employee contributions, forfeitures, amounts allocated to an individual medical account, as defined in
Section 415(1)(2) of the Code and amounts derived from contributions paid or accrued which are attributable to post-retirement medical benefits allocated to the separate account of a key employee (as defined in Section 419A(d)(3) of the
Code) under a welfare benefit plan maintained by the Employer. The annual addition limitation set forth in Section 4.11(a) does not apply to: (1) any contribution for medical benefits (within the meaning of Section 419A(f)(2) of the
Code) after separation from service, or (2) any amount otherwise treated as an “annual addition” under Section 415(l)(1) of the Code. 
 (d) Applicable to ESOP Accounts: 
 (i) In any Plan Year in which there is an Exempt Loan in effect and the
Employer makes contributions to the Plan for the purposes of making payments of principal and interest on the Exempt Loan which are due that year, the amount of the annual additions of each Participant who is entitled to receive an allocation of
annual additions will be calculated on the basis of whichever of the following methods results in a lesser annual addition to the Participant: 
 (1) on the actual amount of contributions credited to the Participant’s Accounts for the year; or 
 (2) on the amount of contributions credited to the Participant’s Accounts with respect to amounts invested in assets other than Company Stock and on the basis of the fair market value of Company Stock released
from the suspense account and credited to the Participant’s Company Stock Account for the Plan Year. Provided, however, shares of Company Stock which are not acquired by the Plan with the proceeds of an Exempt Loan will be calculated solely on
the basis of the fair market value of such shares; 
  

 24 

 (ii) If no more than one-third of the Employer contributions for a Limitation Year that are deductible as
principal or interest payments on a loan, pursuant to the provisions of Section 404(a)(9) of the Code, are allocated to Highly Compensated Employees and the Employer is a C corporation under the Code, then the limitations imposed by subsection
(a) shall not apply to: 
 (1) Forfeitures of Company Stock if the Company Stock was acquired with the proceeds of an
Exempt Loan, or 
 (2) Employer contributions that are deductible as interest payments on an Exempt Loan under
Section 404(a)(9)(B) of the Code. 
 (e) All Employees of an Employer who is a member of a controlled group of
corporations (as defined by Section 1563(a) or Sections 414(b) and (c) of the Code as modified by Section 415(h) of the Code), or who is a member of an affiliated service group (as defined by Section 414(m) of the Code), or who
is a member of a group of entities required to be aggregated pursuant to regulations under Section 414(o) of the Code, shall be considered to be employed by a single Employer. 
 (f) To the extent a Participant is covered under more than one defined contribution plan maintained by the Employer, all such defined
contribution plans will be aggregated with this Plan for purposes of determining the limitation on annual additions. If a Participant’s annual additions exceed the limit on annual additions under Section 415(c) of the Code, the
Participant’s accounts under the other defined contribution plans will be reduced by the amount of the excess to comply with the limit on annual additions under Section 415(c) of the Code. In the event that such reductions are insufficient
to eliminate the excess, it shall be eliminated pursuant to Section 4.10(i). 
 (g) Notwithstanding any provision to the
contrary, this Plan and all other qualified plans of the Employer shall at all times comply with the provisions of Section 415 of the Code and the regulations promulgated thereunder. 
 (h) If the limitation of this Section 4.11 would cause the maximum annual additions to be exceeded for any Participant, such excess
will be managed as follows, as uniformly determined by the Plan Administrative Committee for all Participants. 
 (1) If the
Participant is still participating under the Plan as of the end of the Limitation Year, the excess will be used to reduce the Employer contribution (including allocation of any forfeitures) for such Participant in the next Limitation Year, and
thereafter, if necessary; 
 (2) If after applying the procedure of subsection 4.10(i)(1) an excess still exists and the
Participant is participating under the Plan as of the end of the Limitation Year, the excess will be held unallocated in a Section 415 suspense account which will be applied to reduce future Employer contributions for all remaining Participants
in the next Limitation Year, and thereafter, if necessary. If a Section 415 suspense account remains in place at any time during the Limitation Year, amounts in the Section 415 suspense account must be allocated to a Participant’s
Account before any Employer contributions or any Employee contributions may be made to the Plan for that Limitation Year. 
 Section 4.12 Qualified Military Service. Notwithstanding any provision of this Plan to the contrary, the Plan will provide contributions, benefits and service credit with respect to any qualified military service in accordance
with Section 414(u) of the Code. 
  

 25 

 Section 4.13 ESOP Accounts - Prohibited Allocation of S Corporation Stock. Notwithstanding
any provision of this Plan to the contrary, no allocation of Company Stock shall be made to a “disqualified person,” as that term is defined under Section 409(p) of the Code and any regulations promulgated thereunder, during any Plan
Year which is determined to be a “nonallocation year” under Section 409(p)(3) of the Code. 
 Section 4.13 ESOP
Accounts - Participant Diversification of Investments. Any Participant who has completed at least ten (10) years of participation under the Plan and who has attained age 55 (a “Qualified Participant”) may elect within 90 days
after the close of the Plan Year during the “qualified election period” to direct the Trustee as to the investment of up to 25% of the Company Stock allocated to the Participant’s Company Stock Account (reduced by the number of shares
of Company Stock previously diversified pursuant to a prior election). Qualified election period means the six (6) Plan Year period beginning with the Plan Year in which the Participant first becomes a Qualified Participant. In the event a
Participant has not completed ten (10) years of participation when the Participant attains age 55, the qualified election period shall begin with the Plan Year within which the Participant completes ten (10) years of participation with the
Employer. In the sixth year of the qualified election period, the Qualified Participant may direct the Plan Administrative Committee as to the investment of up to 50% of the Participant’s Company Stock allocated to his Company Stock Account
(reduced by the number of shares of Company Stock previously diversified pursuant to a prior election). Such diversification rights shall not apply to any Participant whose Company Stock Account is not greater than $500. Any diversified shares of
Company Stock will be valued at the Fair Market Value of Company Stock as of the immediately preceding Valuation Date. 
 ARTICLE V 

 TOP-HEAVY PLAN PROVISIONS 
 Section 5.01 Top-Heavy Plan. Subject to the provisions of Section 5.05, the Plan will be a Top-Heavy Plan for a Plan Year if on that Plan Year’s Determination Date the sum of the Account balances of Participants who
are Key Employees (as defined in Section 5.02) exceeds 60 percent of the sum of the Account balances of all Participants. For purposes of this Article V, the “Determination Date” for a Plan Year means the last day of the preceding
Plan Year. 
 Section 5.02 Key Employees. For purposes of this Article V: 
 (a) The term “Key Employee” means, any employee or former employee (including a deceased employee) of an Employer who, at any
time during the Plan Year that includes the Determination Date, was: 
  

	 	(1)	An officer of an Employer having Section 415 Compensation greater than $130,000 (as adjusted under Code Section 416(i)(1)); 

  

	 	(2)	A Five-Percent Owner of an Employer; or 

  

	 	(3)	A one-percent owner of an Employer having Section 415 Compensation of more than $150,000. 

 For purposes of determining an individual’s ownership in an Employer under this subsection (a), the rules of Sections 414(b),
(c) and (m) of the Code will be disregarded. 
 (b) The term “Non-Key Employee” means any employee who is
not a Key Employee. The terms “Key Employee” and “Non-Key Employee” include the Beneficiaries of such employees, respectively. 
  

 26 

 Section 5.03 Determination of Account Balances. For purposes of determining
Participants’ Account balances as of any Determination Date under Section 5.01, the following rules apply: 
 (a) A
Participant’s Account balance will be increased by any amounts distributed to the Participant or his Beneficiary during the one-year period ending on the Determination Date due to the separation from service, death or Total Disability of the
Participant. In the case of a distribution made for any other reason, “five-year period” will be substituted for “one-year period” in the preceding sentence. 
 (b) Notwithstanding subsection (a) above, the Account balance of a Participant who has not performed any services for an Affiliate
during the one-year period ending on the Determination Date will be disregarded. 
 (c) A Participant’s Account balance
will be decreased by any amount rolled over into the Plan if the rollover was initiated by the Participant and the amount came from a plan other than a plan maintained by an Affiliated Employer. 
 Section 5.04 Aggregation of Plans. The Plan will be a Top-Heavy Plan under Section 5.01 if it is part of a Top-Heavy Group for that Plan
Year. 
 (a) Top-Heavy Group. The term “Top-Heavy Group” means each plan maintained by an Employer in which a
Key Employee participates and each other plan which enables such a plan to meet the requirements of Section 401(a)(4) or 410 of the Code (either type of plan is referred to below as an “Aggregated Plan”) where as of a Determination
Date the sum of (1) and (2) below exceeds 60 percent of a similar sum determined for all employees: 
 (1) The total
of the account balances of Key Employees under any defined contribution plan that constitutes an Aggregated Plan, and 
 (2)
The present value of the cumulative accrued benefits of Key Employees under any defined benefit plan that constitutes an Aggregated Plan. 
 (b) Additional Plans. The Employer may treat any other plan it or any other Employer maintains as an Aggregated Plan under subsection (a) above, provided that the Aggregated Plans would in combination with
that plan or plans continue to meet the requirements of Sections 401(a)(4) and 410 of the Code. If the Aggregated Plans which include this Plan do not comprise a Top-Heavy Group, this Plan will not be a Top-Heavy Plan under Section 5.01.

 (c) Other Rules. The rules of Section 5.03 will apply to determine the Account balances of Employees under this
Section (and the term “accrued benefit” will be substituted for the term “Account balance” to determine benefits under a defined benefit plan). Any plan (including a terminated plan) that was maintained by an Employer within the
one-year period ending on the Determination Date will be treated as an Aggregated Plan if it is otherwise described in subsection (a) above. 
 Section 5.05 Minimum Benefit. For any Plan Year in which the Plan is determined to be a Top-Heavy Plan, the contribution allocated under the Plan to the Account of any Participant who is a Non-Key Employee may not be less than
an amount equal to three percent (or, if less, the highest contribution percentage rate of any Key Employee for that year) of the Participant’s Section 415 Compensation. For purposes of determining a Key Employee’s contribution
percentage rate under the preceding sentence, amounts contributed under Section 4.01 for that individual will be counted. A Participant will be entitled to receive an allocation under this Section if he is employed by an Employer on the last
day of the Plan Year regardless of the number of Hours of Service he accrued in that year. If the Company maintains a defined benefit plan that is part of a Top-Heavy Group for any Plan Year under Section 5.04, any Non-Key Employee who
participates under both this Plan and the defined benefit plan will be entitled to the 

  

 27 

 
minimum benefit under the defined benefit plan. Notwithstanding the foregoing, if an Employer maintains any other plan, the minimum benefit required under
this Section will be adjusted in accordance with regulations issued under Section 416(f) of the Code to prevent an inappropriate duplication or omission of required minimum benefits or contributions. In any Plan Year in which the Plan is
determined to be Top Heavy, any required Top Heavy contribution shall be made in the non-ESOP portion of the Plan. 
 ARTICLE VI

 VESTING 
 Section 6.01 Vesting of Accounts. 
 (a) The portion of a Participant’s benefit under the Plan
attributable to ESOP Discretionary and Matching Contributions that is vested (nonforfeitable) on any specified date shall be determined on the basis of his or her Years of Service in accordance with the following schedule: 
  

				
	 Years of Service
	  	Percentage Vested	 
	 Less than two
	  	0	%
	 Two
	  	20	%
	 Three
	  	40	%
	 Four
	  	60	%
	 Five
	  	80	%
	 Six or more
	  	100	%

 The portion of the Participant’s Account attributable to Elective Deferrals Qualified
Matching Contributions and Rollover Contributions shall be fully vested at all times. 
 (b) For purposes of this
Section 6.01, a Year of Service means a Plan Year during which the Employee completes at least one thousand (1,000) Hours of Service for the Employer. Notwithstanding the foregoing, a Participant’s Account shall also become 100%
vested and nonforfeitable upon a Participant’s attainment of his or her Normal Retirement Age or upon a Participant’s death or if a Participant suffers a Total Disability. 
 (c) The determination of a Participant’s vested interest in the Plan shall not be reduced as a result of any amendment to the Plan.
Should the Plan be amended to modify the Plan’s vesting schedule, each Participant with at least three (3) Years of Service may elect to have his nonforfeitable percentage computed under the Plan without regard to such amendment or change.
If the Participant fails to make such election, the Participant shall be subject to the new vesting schedule. The Participant may make his election within sixty (60) days after the later of (1) the adoption of the amendment, (2) the
effective date of the amendment, or (3) the date the Participant is notified by the Plan Administrative Committee of such amendment. 
 Section 6.02 Termination. Following a Participant’s termination of employment, no further allocations of Employer contributions (or forfeitures) or release of Financed Shares shall be made to the Participant’s Account,
except as provided in Section 4.01(b). 
  

 28 

 Section 6.03 Effect of Break in Service. 
 (a) For a Participant who is re-employed after incurring a one (1) year Break in Service and who does not have a vested right to any
benefit in the Plan, Years of Service before the one (1) year Break in Service will not be taken into account if the number of consecutive one (1) year Breaks in Service equals or exceeds the greater of (A) five (5) or
(B) the aggregate number of pre-break Years of Service. 
 (b) For a terminated Participant who has incurred five
(5) consecutive one (1) year Breaks in Service, the vested portion of the Participant’s Account attributable to pre-break service shall not be increased as a result of post-break service. In such case, separate accounts will be
maintained as follows: 
 (1) one account for vested benefits attributable to pre-break service; and 
 (2) one account representing the Participant’s account balance in the Plan attributable to service after the Break in Service.

 Section 6.04 Restoration of Participant’s Account. 
 (a) If a rehired Participant whose Account was less than 100% vested upon distribution, before the earlier of five (5) years after
the date the Participant is rehired or the end of the period of five (5) consecutive one (1) year Breaks in Service from the date of distribution, repays the full amount distributed, the Participant’s Account will be restored to the
balance on the Anniversary Date (or Valuation Date) immediately preceding the distribution. 
 (b) To restore the
Participant’s Account balance, the Plan Administrative Committee shall, to the extent necessary, allocate to such Participant’s Account the following amounts in the order listed: 
 (1) The amount of any Participant forfeitures which would otherwise be allocated under Section 4.01; 
 (2) The amount of any net income or gain of the Trust Fund for the Plan Year; and 
 (3) The amount of the Employer contribution for the Plan Year, except to the extent such contribution is required to enable the Plan to
meet its obligations under an Exempt Loan. 
 To the extent the foregoing amounts are insufficient to restore completely the
Participant’s Account, the Employer shall contribute without regard to any requirement or condition contained in Section 3.01, such additional amount as is necessary to complete such restoration. Such contribution must be made as of the
Anniversary Date for the Plan Year in which the Participant’s repayment occurs. 
 Section 6.05 Forfeiture. In the event of
a termination of participation before the Employee acquires a fully vested interest in his Account balance, the nonvested portion shall be forfeited upon the Anniversary Date of the Plan Year in which the Participant (a) receives a full
distribution of his account or (b) incurs a five (5) year Break in Service, if earlier, and the amount forfeited shall be treated in accordance with Section 4.01. 
 Section 6.06 Notification to Terminated Participant of Vested Amount. The Plan Administrative Committee shall notify each terminated
Participant of his vested Account balance. The notification will 

  

 29 

 
be by certified mail to his last known residence address, as disclosed by the records of the Employer. This statement shall contain the nature, amount and
form of the vested Account, and shall set forth any available distribution options. 
 ARTICLE VII 
 TERMINATION AND RETIREMENT 
 Section 7.01 Normal Benefit. A Participant who terminates employment on or after attaining Normal Retirement Age, as applicable, shall be eligible to receive distribution of his accrual benefit in the form and manner provided in
Article VIII. 
 Section 7.02 Deferred Retirement. A Participant may remain in the employ of the Employer after attaining Normal
Retirement Age. Except as otherwise provided in Article VIII, payment of the Participant’s vested benefit shall not commence until the date such Participant actually terminates employment. Upon termination of employment pursuant to this
Section 7.02, the Participant shall be entitled to receive distribution of his Account in the form and manner provided in Article VIII. 
 Section 7.03 Disability Retirement. A Participant who incurs a Total Disability prior to attaining Normal Retirement Age and whose employment is terminated as a result thereof shall be eligible to receive a distribution of his
accrual benefit in the form and manner provided in Article VIII. 
 Section 7.04 Termination Distribution. An Employee whose
participation in the Plan terminates for reasons other than attaining Normal Retirement Age, death or Total Disability, and who is vested in all or a portion of his Account shall be entitled to a distribution as provided in Article VIII. 

Section 7.05 Death Benefit. 
 (a) Subject to subsection (b) of this Section, upon the death of a Participant before retirement or other termination of his employment, his Account shall become fully vested. The Plan Administrative Committee
shall direct the Trustee to distribute such amounts to the Participant’s Beneficiary in accordance with the distribution provisions of Section 8.01. Any payment so made shall be a complete discharge of all liability under the Plan with
respect to such benefit. 
 (b) (1) Notwithstanding the Beneficiary designation of a deceased Participant, the account balance
of a deceased Participant who was married on the date of his or her death shall be paid to the Surviving Spouse of the deceased Participant unless a Qualified Waiver has been filed with the Plan Administrative Committee. 
 (2) For purposes of this subsection: 
 (i) “Surviving Spouse” shall mean a spouse of the Participant who is living on the date of his or her death, provided that a former spouse will be treated as the surviving spouse to the extent provided under
a Qualified Domestic Relations Order. 
 (ii) “Qualified Wavier” shall mean a written waiver by a spouse of the
right to receive the death benefit attributable to a Participant. The spouse’s waiver must be witnessed by a Plan representative or notary public. Notwithstanding this requirement, if the Participant establishes to the satisfaction of a Plan
representative that such written waiver may not be obtained because there is no spouse or the 

  

 30 

 
spouse cannot be located, a Qualified Waiver will be deemed to exist. Any Qualified Waiver under this provision will be valid only with respect to the spouse
who signs the Qualified Waiver, or in the event of a deemed Qualified Waiver, the designated spouse. Additionally, a revocation of a prior waiver may be made by a Participant without the consent of the spouse at any time before death. The number of
revocations shall not be limited. 
 (c) The Plan Administrative Committee may require such proper proof of death and such
evidence of the right of any person to receive payment of the vested benefit of a deceased Participant or former Participant as the Plan Administrative Committee may deem desirable. The Plan Administrative Committee’s determination of death and
of the right of any person to receive payment shall be conclusive. 
 (d) Subject to subsection (b) above, each Employee,
upon becoming a Participant, may designate a Beneficiary of his own choosing, and may, in addition, name a contingent Beneficiary. Such designation shall be made in a form satisfactory to the Plan Administrative Committee. Any Participant may at any
time revoke his designation of a Beneficiary or change his Beneficiary by filing written notice of such revocation or change with the Plan Administrative Committee. 
 (e) Subject to Section 8.05, if distributions have commenced under Section 401(a)(9)(A)(ii) of the Code before the
Participant’s death, the remaining interest in his Account will be distributed at least as rapidly as under the method of distribution being used as of the date of the Participant’s death. 
 Section 7.06 Effect of QDRO. Notwithstanding any other provision of this Article VII, the Plan Administrative Committee and the Trustee shall
give full effect to any QDRO applicable at the time of death of the Participant, even to the extent that giving effect to such QDRO defeats or diminishes the interest of any Surviving Spouse or other Beneficiary hereunder. 
 ARTICLE VIII 
 DISTRIBUTION
PROCEDURES 
 ESOP Distribution Procedures 
 Section 8.01 Retirement, Death or Disability Benefit Payments. Benefits payable under this Plan as a result of termination of employment following attainment of Normal Retirement Age, or upon a Participant’s Deferred
Retirement Date or as a result of death or Total Disability, shall be paid in substantially equal annual installment payments over a period of five (5) years commencing in the Plan Year following the Plan Year in which the Participant
terminates employment. Such distributions shall commence as soon as administratively practicable following the Participant’s Normal or Deferred Retirement Date, death or Total Disability. With respect to a Participant who has an ESOP Account
balances which is greater than $800,000 (as provided in Section 409(o)(1)(C)(ii) of the Code, as adjusted pursuant to Section 409(o)(2) of the Code) as of his termination of employment under this Section 8.01, the Participant’s
ESOP Account balances shall be paid over at least a five (5) year period, which shall be extended one (1) year for each $160,000 (or fraction thereof) (as provided in Section 409(o)(1)(C)(ii) of the Code, as adjusted pursuant to
Section 409(o)(2) of the Code) by which the Participant’s ESOP Account balances exceeds $800,000. Provided however, such additional distribution period shall not exceed a total distribution period of ten (10) years, unless a longer
period is elected by the Participant. Notwithstanding the foregoing, if the vested portion of the Participant’s ESOP Account balance is less than $5,000, such Participant’s vested ESOP Account balance shall be distributed to the
Participant as soon as administratively practicable following the close of the Plan Year in which the Participant’s employment terminates. 
  

 31 

 Section 8.02 Termination of Employment Prior to Retirement, Death or Disability. 

(a) The amount payable to a Participant who terminates his employment for reasons other than attaining Normal Retirement Age or
Deferred Retirement Date, death, or Total Disability, shall be determined based on his or her vested percentage pursuant to Section 6.01. 
 (b) For purposes of this Section 8.02 and subject to Section 8.02(d), if the vested portion of the Participant’s ESOP Account balance is greater than $5,000, upon the Participant incurring five
consecutive one (1) year Breaks in Service following his or her termination of employment, the Plan Administrative Committee shall direct the Trustee to distribute the terminated Participant’s vested ESOP Account balance to the
Participant, with the Participant’s consent, in substantially equal annual installments over a five (5) year period (or longer if elected by the Participant, not however, beyond the life expectancy of the Participant or of the Participant
and his or her spouse). If the terminated Participant’s ESOP Account balance is greater than $800,000, the Participant’s ESOP Account balance shall be distributed over an additional period in accordance with Section 409(o)(1)(C)(ii)
of the Code as more fully described in Section 8.01. 
 (c) For purposes of this Section 8.02 and non- ESOP accounts
subject to Section 8.02 (d) if the vested portion of the Participant’s Account is less than $1,000 upon the Participant incurring five consecutive one (1) year breaks in service following his termination of employment, the Plan
Administration Committee shall direct the Trustee to distribute the terminated Participant’s vested Account to the Participant in a lump sum. For purposes of this Section 8.02 and non-ESOP accounts subject to Section 8.02(d) for ESOP
accounts if the vested portion of the Participant’s ESOP Account balance is $1,000 or more, upon the Participant incurring five consecutive one (1) year Breaks in Service following his or her termination of employment, the Plan
Administrative Committee shall direct the Trustee to distribute the terminated Participant’s vested ESOP Account balance to the Participant, only with the Participant’s consent, in substantially equal annual installments over a five
(5) year period (or longer if elected by the Participant, not however, beyond the life expectancy of the Participant or of the Participant and his or her spouse). 
 (d) Notwithstanding any provisions of this Section 8.02 to the contrary, a distribution of a Participant’s ESOP Account balance,
pursuant to this Section 8.02, shall not include Company Stock which has been acquired by the Plan with the proceeds of an Exempt Loan until the close of the Plan Year in which said loan is repaid in full. The provisions of this
Section 8.02(d) shall not apply if the Plan Administrative Committee receives a written waiver from the lender of the Exempt Loan or if the distribution is as a result of Normal Retirement, death or Total Disability. 
 (e) For purposes of this Section 8.02 and non-ESOP accounts, if the value of a terminated Participant’s ESOP and non-ESOP
accounts separately are zero (0) because the Participant is not vested in any portion of his ESOP or non-ESOP accounts upon termination, the terminated Participant shall be deemed to have received a distribution of his respective ESOP and
non-ESOP accounts from the Plan. 
 Section 8.03 Special Procedures. 
 (a) As to ESOP and non-ESOP accounts under the Plan, a Participant who has terminated service and is entitled to a benefit as described in
Section 8.02(c) must be informed of the right to defer receipt of the distribution of his benefit. If no consent is provided, it shall be considered an election to defer the distribution of the Account. Provided however, an election to defer
the receipt of benefits shall not apply with respect to required minimum distributions under Section 401(a)(9) of the Code. A Participant’s right to a distribution shall be provided by written notice no less than thirty (30) days and
no more than ninety (90) days before the expected distribution date. Further, written consent of the Participant to the distribution must not be made 

  

 32 

 
before the Participant receives the notice and must not be made more than ninety (90) days before the date the expected distribution date. Provided
however, a distribution may commence less than thirty (30) days after the required notice is provided if the Plan Administrative Committee informs the Participant that he has at least thirty (30) days following receipt of the notice to
consider the distribution decision and the Participant thereafter elects to receive the distribution. 
 (b) As to ESOP and
non-ESOP portions of the Plan, spousal consent shall not be required with regard to distribution elections under this Article VIII due to the Plan’s utilization of the exception set forth in Section 401(a)(11)(C) of the Code. 

Section 8.04 Manner of Benefit Payments. 
 (a) A Participant’s ESOP accounts may be distributed, as determined by the Plan Administrative Committee, in cash or Company Stock or both. Provided, however, except as provided in Section 8.04(c) at the
election of the Participant or the Participant’s Beneficiary, as applicable, a Participant’s Account (other than Company Stock diversified by a Participant pursuant to Section 4.13) shall be paid in the form of Company Stock. If a
Participant or a Participant’s Beneficiary elects that his Account be paid only in the form of Company Stock, any amounts in the Participant’s Investment Account will be exchanged for the maximum number of whole (not fractional) shares of
Company Stock at the Fair Market Value of the Company Stock as of the immediately preceding Valuation Date. 
 (b) With
respect to the distribution of a Participant’s Company Stock Account in the form of cash, the cash distribution will be made based on the Fair Market Value, pursuant to Section 4.04(a), as of the Valuation Date coincident with or
immediately preceding the distribution. 
 (c) To the extent the Employer’s Articles of Incorporation or Bylaws limit the
ownership of Company Stock to employees or a trust as described in Section 401(a) or to the extent the Employer is taxed under Subchapter S of the Code, a Participant shall not have the right to elect to receive a distribution of his Account in
the form of Company Stock. 
 (d) A Participant may request that any distribution or installment distribution be directly
transferred to any other eligible retirement plan as defined in Section 402(c)(8)(B) of the Code. Further, a Participant may request at any time to have his/her Rollover Account directly transferred to another plan eligible to receive such
transfers by way of a direct rollover made pursuant to Section 401(a)(31) of the Code provided that the Rollover Account is not invested in Company Stock. 
 Section 8.05 Non-ESOP Accounts, Payment Upon Retirement, Disability or Death. 
 (a) If the Participant terminates employment due to Normal Retirement, Total Disability, or death, his account(s) shall be paid as soon as administratively possible after the accounting date following the event creating the right to a
distribution occurred. 
 (b) If the Participant terminates employment other than by Normal Retirement, Total Disability or
death, his account(s) shall be paid as soon as administratively possible after the accounting date following the date of severance of employment. 
 (c) All distributions of non-ESOP accounts shall be made in a lump sum. 
 (d) A participant
may withdraw amounts from his non-ESOP account(s) before his separation from service only under the circumstances and only to the extent provided below. 
 (1) A Participant may elect to receive payment of benefit from his accounts at any
time after he attains age 59 1/2 by filing a written request with the Plan Administrator. 

  

 33 

 
Any portion withdrawn from an account that is subject to a matching contribution shall be accounted for on a first-in, first-out basis. The receipt of
benefits shall not affect his participation in the plan, and such Participant shall continue to receive allocations to his account. 
 (2) A Participant may request a withdrawal from his non-ESOP rollover/transfer account. The Participant’s request to withdraw shall be made in writing to the plan administrator. The plan administrator shall approve requests on a
non-discriminatory basis. The form of payment shall be limited to a lump sum. 
 (3) Hardship Withdrawals from Elective
Deferral Account 
 (A) A Participant who has a financial hardship may request a lump sum withdrawal from his employee 401(k)
Elective Deferral Account, subject to the limitations and conditions set forth herein. 
 (B) The amount that an eligible
Participant may withdraw from his Elective Deferral shall not exceed the cumulative amount of his 401(k) salary deferral contributions. Earnings thereon may not be withdrawn. 
 (C) The Participant’s request to withdraw must be made in writing to the Plan Administrator and shall be subject to his consent. The
basis for the plan administrator’s consenting to or refusing to consent to the Participant’s request shall be demonstrated financial hardship of the participant as described in Section 8.05(d)(4). 
 (4) Hardship Withdrawals 
 For the purpose of this Section 8.05(d)(4), a distribution of an Elective Deferral Account will be made on account of hardship if the distribution is necessary in light of immediate and heavy financial need of
the Participant. A distribution based upon financial hardship cannot exceed the amount required to meet the immediate financial need created by the hardship and not reasonably available from other resources of the Participant. The determination of
the existence of financial hardship and the amount required to be distributed to meet the need created by the hardship must be made in accordance with uniform and non-discriminatory standards established by the Plan Administrator under these Plan
provisions. 
 An immediate and heavy financial need may be determined to exist under certain facts and circumstances
including the following: (1) expenses incurred or necessary for medical care described in Section 213(d) of the Code of the employee, the employee’s spouse, children, or dependents; (2) the purchase (excluding mortgage payments)
of a principal residence for the employee; (3) payment of tuition and related educational fees for the next twelve months of post-secondary education for the employee, the employee’s spouse, children or dependents; or (4) the need to
prevent the evection of the employee from, or a foreclosure on the mortgage of, the employee’s principal residence. 
 A
distribution will be considered as necessary to satisfy an immediate and heavy financial need of the employee only if: 
 (1)
The employee has obtained all distributions (including dividends to the extent currently available), other than hardship distributions, and all nontaxable loans under all plans maintained by the Employer; 
  

 34 

 (2) All plans maintained by the Employer provided that the Employee’s Elective
Deferrals will be suspended for at least 6 months but not more than 12 months after the receipt of the hardship distribution; 
 (3) The distribution is not in excess of the amount of an immediate and heavy financial need (including amounts necessary to pay any federal, state or local income taxes or penalties reasonably anticipated to result from the distribution);
and 
 (4) All plans maintained by the Employer provide that the employee may not make Elective Deferrals for the
Employee’s taxable year immediately following the taxable year of the hardship distribution in excess of the applicable limit under Section 402(g) of the Code for such taxable year less the amount of such Employee’s Elective Deferrals
for the taxable year of the hardship distribution. 
 Section 8.06 Minimum Distribution Requirements. 
 (a) The Participant’s entire interest will be distributed, or begin to be distributed, to the Participant no later than the
Participant’s Required Beginning Date. 
 (b) If the Participant dies before distributions begin, the Participant’s
entire interest will be distributed, or begin to be distributed, no later than as follows: 
 (1) If the Participant’s Surviving Spouse is the Participant’s sole Designated Beneficiary, distributions to the Surviving Spouse will begin by December 31 of the calendar year immediately following the
calendar year in which the Participant died, or by December 31 of the calendar year in which the Participant would have attained age 70 1/2, if later. 
 (2) If the Participant’s Surviving Spouse is not the
Participant’s sole Designated Beneficiary, distributions to the Designated Beneficiary will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died. 
 (3) If there is no Designated Beneficiary as of September 30 of the year following the year of the Participant’s death, the
Participant’s entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the Participant’s death. 
 (4) If the Participant’s Surviving Spouse is the Participant’s sole Designated Beneficiary and the Surviving Spouse dies after
the Participant but before distributions to the Surviving Spouse begin, this subsection 8.06(b), other than subsection 8.06(b)(1), will apply as if the Surviving Spouse were the Participant. 
 For purposes of this subsection 8.06(b) and subsection 8.06(c), unless subsection 8.06(b)(4) applies, distributions are considered to
begin on the Participant’s Required Beginning Date. If subsection 8.06(b)(4) applies, distributions are considered to begin on the date distributions are required to begin to the Surviving Spouse under Section 8.06(b)(1). 
 (c) During the Participant’s lifetime, the minimum amount that will be distributed for each distribution calendar year is the lesser
of (1) or (2): 
  

 35 

 (1) The quotient obtained by dividing the Participant’s Account Balance by the
distribution period in the Uniform Lifetime Table set forth in section 1.401(a)(9)-9 of the Treasury Regulations, using the Participant’s age as of the Participant’s birthday in the distribution calendar year. 
 (2) If the Participant’s sole Designated Beneficiary for the distribution calendar year is the Participant’s Surviving Spouse,
the quotient obtained by dividing the Participant’s Account Balance by the number in the Joint and Last Survivor Table set forth in section 1.401(a)(9)-9 of the Treasury Regulations, using the Participant’s and Surviving Spouse’s
attained ages as of the Participant’s and Surviving Spouse’s birthdays in the distribution calendar year. 
 (3)
Required minimum distributions will be determined under Section 8.05(c) beginning with the first distribution calendar year and up to and including the distribution calendar year that includes the Participant’s date of death. 

(d) If the Participant dies on or after the date distributions begin and there is a Designated Beneficiary, the minimum amount that
will be distributed for each distribution calendar year after the year of the Participant’s death is the quotient obtained by dividing the Participant’s Account Balance by the longer of the remaining life expectancy of the Participant or
the remaining life expectancy of the Participant’s Designated Beneficiary, determined as follows: 
 (1) The
Participant’s remaining life expectancy is calculated using the age of the Participant in the year of death, reduced by one for each subsequent year. 
 (2) If the Participant’s Surviving Spouse is the Participant’s sole Designated Beneficiary, the remaining life expectancy of the Surviving Spouse is calculated for each distribution calendar year after the
year of the Participant’s death using the Surviving Spouse’s age as of the spouse’s birthday in that year. For distribution calendar years after the year of the Surviving Spouse’s death, the remaining life expectancy of the
Surviving Spouse is calculated using the age of the Surviving Spouse as of the spouse’s birthday in the calendar year of the spouse’s death, reduced by one for each subsequent calendar year. 
 (3) If the Participant’s Surviving Spouse is not the Participant’s sole Designated Beneficiary, the Designated
Beneficiary’s remaining life expectancy is calculated using the age of the Beneficiary in the year following the year of the participant’s death, reduced by one for each subsequent year. 
 (e) If the Participant dies on or after the date distributions begin and there is no Designated Beneficiary as of September 30 of the
year after the year of the Participant’s death, the minimum amount that will be distributed for each distribution calendar year after the year of the Participant’s death is the quotient obtained by dividing the Participant’s account
balance by the Participant’s remaining life expectancy calculated using the age of the Participant in the year of death, reduced by one for each subsequent year. 
 (f) If the Participant dies before the date distributions begin and there is a Designated Beneficiary, the minimum amount that will be
distributed for each distribution calendar year after the year of the Participant’s death is the quotient obtained by dividing the Participant’s account balance by the remaining life expectancy of the Participant’s Designated
Beneficiary, determined as provided in Section 8.05(d). 
  

 36 

 (g) If the Participant dies before the date distributions begin and there is no
Designated Beneficiary as of September 30 of the year following the year of the Participant’s death, distribution of the Participant’s entire interest will be completed by December 31 of the calendar year containing the fifth
anniversary of the Participant’s death. 
 (h) If the Participant dies before the date distributions begin, the
Participant’s Surviving Spouse is the Participant’s sole Designated Beneficiary, and the Surviving Spouse dies before distributions are required to begin to the Surviving Spouse under Section 8.05(b), this Section 8.06(h) will
apply as if the Surviving Spouse were the Participant. 
 (i) Definitions. 
 (1) Designated Beneficiary. The individual who is designated as the beneficiary under Section 1.08 of the Plan and is the designated
beneficiary under Section 401(a)(9) of the Internal Revenue Code and Section 1.401(a)(9)-1, Q&A-4, of the Treasury Regulations. 
 (2) Distribution calendar year. A calendar year for which a minimum distribution is required. For distributions beginning before the Participant’s death, the first distribution calendar year is the calendar year
immediately proceeding the calendar year which contains the Participant’s Required Beginning Date. For distributions beginning after the Participant’s death, the first distribution calendar year is the calendar year in which distributions
are required to begin under Section 8.05(b). The required minimum distribution for the Participant’s first distribution calendar year will be made on or before the Participant’s Required Beginning Date. The required minimum
distribution for other distribution calendar years, including the required minimum distribution for the distribution calendar year in which the Participant’s Required Beginning Date occurs, will be made on or before December 31 of that
distribution calendar year. 
 (3) Life expectancy. Life expectancy as computed by use of the Single Life Table in section
1.401(a)(9)-9 of the Treasury regulations. 
 (4) Participant’s Account Balance. The Account balance as of the last
Valuation Date in the calendar year immediately preceding the distribution calendar year (valuation calendar year) increased by the amount of any contributions made and allocated or forfeitures allocated to the Account balance as of dates in the
valuation calendar year after the Valuation Date and decreased by distributions made in the valuation calendar year after the Valuation Date. The Account balance for the valuation calendar year includes any amounts rolled over or transferred to the
Plan either in the valuation calendar year or in the distribution calendar year if distributed or transferred in the valuation calendar year. 
 (5) Required Beginning Date. The date specified in Section 1.53 of the Plan. 
  

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 Section 8.07 Right of First Refusal – ESOP Accounts. 
 (a) If a Participant or a Participant’s Beneficiary has received a distribution of Company Stock from the Plan, such shares shall be
subject to a right of first refusal in favor of the Employer whose Company Stock has been distributed. The Company may assign its right of first refusal to the Plan, provided however the Plan shall be under no obligation to purchase the shares. The
provisions of this Section 8.06 shall not be applicable if the Company Stock is publicly traded. 
 (b) If the
Participant should desire to sell the shares or shall have received a bona fide offer from a third party, the Participant shall give written notice of such desire to sell or third party offer to the Employer. The Employer may exercise its right of
first refusal for a period of fourteen (14) days from the date the Participant notifies the Employer. The purchase of the shares from the former Participant shall occur within ten (10) days after the Employer or the Plan notifies the
Participant of the exercise of the right of first refusal. The purchase price for the shares must not be less favorable to the selling Participant than the greater of the Fair Market Value of the shares determined under Section 4.05(a), or the
purchase price offered by the bona fide third-party buyer. 
 (c) If the right of first refusal is not exercised within the
exercise period, the Participant shall have the right to sell the shares to the third party buyer. 
 (d) Company Stock
distributed by the Plan shall bear a conspicuous legend describing the right of first refusal under this Section 8.07. 
 Section 8.08 Employer’s Obligation to Purchase Distributed Company Stock – ESOP Accounts. 
 (a) If a Participant or a Participant’s Beneficiary, as applicable, receives a distribution of Company Stock, the Participant or the Participant’s Beneficiary may, by written notice to the Employer within sixty (60) days
after the date of the distribution, or, if no notice is given within said initial period, then within sixty (60) after the new determination of the Fair Market Value of the Company Stock (and notice to the Participant) in the following Plan
Year, require the Employer to purchase the shares of Company Stock distributed to the Participant or his Beneficiary pursuant to a “put option.” Said sixty (60) day periods shall not include any period of time during which the
Employer is prohibited from purchasing the Company Stock by federal or state law. The “put option” may only be exercised by the Participant, the Participant’s donees or those to whom the Participant’s Company Stock passes by
reason of the Participant’s death. The provisions of this Section 8.07 shall not be applicable if the Company Stock is publicly traded. 
 (b) The purchase price of each share of Company Stock purchased pursuant to this Section 8.07 shall be the Fair Market Value determined as of the Valuation Date coincident with or immediately preceding the
Employer’s receipt of written notification from the Participant or the Participant’s Beneficiary. The total purchase price shall be paid to the Participant or the Participant’s Beneficiary within 30 days after notification to the
Employer, provided, however, that the Employer may defer such payments as provided in (c), below, if the distribution was a distribution, within one taxable year of the recipient, of the Participant’s entire Account balance, and it gives
written notice to the Participant or the Participant’s Beneficiary within said 30-day period. 
 (c) If the Employer
elects to defer payment of the purchase price determined under subsection (b), the Employer shall notify the Participant or his Beneficiary of the terms of payment, which terms of payment shall be subject to the following conditions: 
 (1) The deferred payments must be adequately secured. 
 (2) The deferred payments must include a reasonable rate of interest. 
  

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 (3) The deferred payments must begin within 30 days after the written notification by the
Participant or his Beneficiary is received. 
 (4) The deferred payments must be substantially equal in amount, paid at least
annually, and may not extend over a period of more than 5 years from the date the written notification is received by the Employer. 
 (d) Upon receipt of a written notification from a Participant or his Beneficiary pursuant to subsection (a), hereof, the Employer shall immediately inform the Plan Administrative Committee of such notice and the Plan Administrative
Committee shall thereafter have ten (10) days to notify the Employer if it wishes the Trust to assume the rights and obligations of the Employer with respect to the required purchase of Company Stock. 
 Section 8.09 Minor Beneficiaries. If, under the terms of the Plan and Plan Administrative Committee directives, the Trustee is required to
make payment to a minor for whom no guardian shall have been appointed, Trustee may make payment to the person having custody of the minor, and the receipt of such person shall be a full release of the Trustee and the Plan Administrative Committee.
Any payment so made in accordance with this Section shall be a complete discharge of all liability under the Plan with respect to such benefit. 
 Section 8.10 Incapacity of Participant or Beneficiary. If the Plan Administrative Committee determines that any Participant or Beneficiary entitled to payment hereunder is incompetent by reason of physical or mental disability,
and consequently unable to provide appropriate elections, the Plan Administrative Committee may direct the Trustee to make all payments thereafter becoming due to such person (for so long as such incompetency shall continue) to any other person for
the sole benefit of said incompetent, or to his guardian, if one shall have been legally appointed. Any payment so made in accordance with this Section shall be a complete discharge of all liability under the Plan with respect to such benefit.

 Section 8.11 Unclaimed Account Procedure. If the Plan Administrative Committee and/or the Trustee are unable to locate a
former Participant (or Beneficiary) after the Plan Administrative Committee has tried to contact the former Participant (or Beneficiary) by sending a registered letter and after other reasonable diligent efforts, the former Participant’s
Account shall be administered in accordance with the following: 
 (a) If the former Participant’s vested Account is not
in excess of $5,000, the Plan Administrative Committee may, in its discretion, treat the Account as forfeited or pay such amount to an individual retirement account for the benefit of the individual. 
 (b) If the former Participant’s vested Account is greater than $5,000, the Account of the former Participant shall be forfeited upon
the Participant’s attainment of Normal Retirement Age, if the Participant still cannot be located, or the Plan Administrative Committee may, in its discretion, pay such amount to an individual retirement account for the benefit of the
individual. 
 If a Participant or Beneficiary who has incurred a forfeiture of his Participant’s Account under the provisions of the
first paragraph of this Section 8.10 makes a claim, at any time, for his forfeited Account, the Plan Administrative Committee shall restore the Participant’s forfeited Account to the same dollar amount as the dollar amount that was
forfeited, unadjusted for any gains or losses occurring subsequent to the date of the forfeiture. The Employer may make a contribution to the Plan to enable the Plan Administrative Committee to make the required restoration or the Plan
Administrative Committee may make the restoration from the amount, if any, of the Trust Fund net income or gain for the Plan Year in which the Participant or Beneficiary makes the claim. The Plan Administrative Committee shall direct the Trustee to
distribute the Participant’s or Beneficiary’s restored Accounts to him/her not later than sixty (60) days after the close of the Plan Year in which the Plan Administrative Committee restores the forfeited Account. 
  

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 Section 8.12 Distributions During Employment – ESOP Accounts. The Plan does not permit
distributions of any ESOP accounts to a Participant while employed. 
 Section 8.13 Distributions Pursuant to Qualified Domestic
Relations Order. Any benefit accrued to a Participant in this Plan shall be subject to the rights of an Alternate Payee. Distribution to an Alternate Payee shall be permitted pursuant to a QDRO even though the affected Participant has not
separated from service and has not attained the “earliest retirement age” as described in Section 414(p) of the Code. 
 ARTICLE IX 
 VOTING RIGHTS – ESOP ACCOUNTS 
 Section 9.01 Voting Rights. Except as provided in Section 9.02, if the Company Stock of the Employer is a registration type class of
securities, each Participant and Participant’s Beneficiary, as applicable, may direct the Trustee, in confidence, as to how the Company Stock allocated to the Participant’s Company Stock Account is to be voted. If the Company Stock of the
Employer is not a registration type class of security, each Participant and Participant’s Beneficiary, as applicable, may direct the Trustee, in confidence, as to how the Company Stock allocated to the Participant’s Company Stock Account
is to be voted. Provided however, if any agreement is entered into by the Trust which prescribes the voting of any shares of Company Stock pledged as security for any obligation of the Plan, then such shares of Company Stock shall be voted in
accordance with such agreement. 
 Section 9.02 Unallocated Company Stock/Voting Instructions. All unallocated Company Stock held
by the Plan shall be voted by the Trustee in accordance with the direction of the Plan Administrative Committee, unless the Board retains voting responsibility for issuing such directions, in which case such direction will be issued by the Board. If
the Trustee does not receive timely instructions from the Participant regarding the manner in which it is to vote Company Stock allocated to the Participant’s Company Stock Account, the Trustee shall vote the Company Stock allocated to the
Participant’s Company Stock Account in accordance with the direction of the Plan Administrative Committee, unless the Board retains responsibility for issuing such directions, in which case such direction will be issued by the Board.

  

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 ARTICLE X 
 ADMINISTRATION 
 Section 10.01 The Plan Sponsor. 
 (a) Beyond its other responsibilities and authority under the Plan, the Plan Sponsor is empowered to carry out the following: 

(1) To appoint and remove members of the committee serving collectively as the Plan Administrative Committee as provided in
Section 10.02. 
 (2) To appoint and remove the Trustee. 
 (3) To appoint and remove one or more Investment Managers (qualified under the Investment Company Act of 1940, as amended). 

(4) To appoint and/or hire any other professional advisors, including but not limited to legal counsel, to provide advice to the Plan
Administrative Committee or the Trustee. 
 (b) It shall be the responsibility of the Plan Sponsor to establish a
“funding policy” for the Plan. The funding policy shall consider the Plan’s short and long term liquidity needs. The Plan Sponsor shall provide the Trustee with a written “funding policy” which shall be consistent with the
needs of the Plan. Such “funding policy” shall not constitute written instructions to the Trustee as to the investment of Plan assets but shall serve as a guide to the Trustee as to the investment of the Trust Fund. 
 (c) If the Plan Sponsor appoints one or more Investment Managers, such appointment shall be made in writing wherein said Investment
Manager expressly acknowledges that the Investment Manager is a fiduciary under the Plan. The Plan Sponsor may delegate to such Investment Manager in such document the authority of the Trustee to manage, acquire, invest or dispose of all or any part
of the non-Company Stock assets in the Trust Fund held by such Trustee. With respect to assets entrusted to the Investment Manager, the Investment Manager shall give written directions to the Trustee, who may rely thereupon. 
 (d) The Plan Sponsor shall be responsible for periodically reviewing the performance of any Named Fiduciary or other individual, party or
entity to whom duties have been delegated pursuant to the provisions of the Plan. 
 Section 10.02 Plan Administrative Committee.
The Plan Administrative Committee shall be a committee appointed by the Plan Sponsor which shall be charged with all reporting, filing and other legal duties imposed on plan administrative committees by ERISA, the Code or other applicable laws. As
such, the Plan Administrative Committee shall have complete authority (and all specific powers necessary and proper thereto) to control and manage the operation and administration of the Plan. The Plan Administrative Committee, serving through an
appointed committee, shall exercise its authority by majority and may reach a decision without holding a formal meeting by a written instrument submitted to each committee member and signed by a majority. Any appointment hereunder shall be confirmed
in a written document kept with other Plan documents, and all Participants shall be notified of such appointment. 
 Section 10.03
Plan Administration. The Plan Administrative Committee, in its sole discretion, shall carry out all general administrative duties under the Plan, including, but not limited to the following: 
  

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 (a) Determining all questions relating to the eligibility of Employees to participate or
to continue participation; 
 (b) Computing, certifying and directing the Trustee with respect to the amount and kind of
benefits to which any Participant is entitled; 
 (c) Authorizing and directing the Trustee with respect to all disbursements
(distributions) from the Trust; 
 (d) Directing the Trustee as to the manner in which to vote Company Stock pursuant to
Article IX, unless the Board retains responsibility for issuing such directions. 
 (e) Maintaining all records and books of
account necessary for the administration of the Plan; 
 (f) Interpreting the provisions of the Plan and making and publishing
such interpretive or procedural rules as are not inconsistent with the Plan and applicable law; 
 (g) Directing the Trustee
as to the investment of available cash pursuant to Paragraph 3.2 of the Trust, unless an Investment Manager has been appointed pursuant to Section 10.01; 
 (h) Advising and assisting any Participant regarding any right, benefits or elections available under the Plan; 
 (i) Preparing and filing such reports and documents and keeping accurate records of its actions as may be required under ERISA, the Code,
or other applicable law; 
 (j) Providing to Participants and Beneficiaries such information and Plan descriptions, reports or
copies of the Plan as may be required by law; 
 (k) Disposing of claims for benefits under the Plan; 
 (l) Determining whether a domestic relations order served upon the Plan is a Qualified Domestic Relations Order; 
 (m) Performing such other administrative duties under the Plan as may from time to time fall under the authority of the Plan
Administrative Committee. 
 (n) Authorizing one or more individuals to sign all communications between the Committee and the
Trustee and Participants. 
 Section 10.04 Allocation and Delegation of Authority. 
 The Plan Administrative Committee may engage agents and professionals to assist it in carrying out its functions hereunder, including, but not limited to,
financial consultants, investment counsel, accountants, actuaries and legal counsel, which agents or professionals may also be those retained by the Employer in its business. 
 Section 10.05 Information from Employer. The Employer shall supply full and timely information to the Plan Administrative Committee on the
Compensation of Participants, their employment, retirement, death, disability, termination of employment, and such other facts as the Plan Administrative Committee may reasonably require. The Plan Administrative Committee is entitled to rely on such
information and shall have no duty to verify it unless it is inaccurate on its face. 
  

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 Section 10.06 Expenses. All expenses of administration shall be paid from the Trust Fund
unless such expenses shall be paid by the Employer. Such expenses shall be any and all reasonable expenses relating to the function of the Plan, including but not limited to, fees of legal counsel to the Plan or any fiduciary of the Plan or other
fees incident to the administration of the Plan. 
 Section 10.07 Expense of Legal Proceedings. To the extent and under the
circumstances permitted by law, the Employer shall indemnify the Plan Administrative Committee for all reasonable expenses (including counsel fees) incurred by it in any legal proceeding relating to the Plan. 
 Section 10.08 Action by the Employer. Any action by the Plan Sponsor or the Employer pursuant to the provisions of this Plan shall be
evidenced by a resolution of the Board of the Plan Sponsor or the Employer, as applicable, certified over the signature of the Employer’s corporate secretary, and the Plan Administrative Committee and Trustee shall be fully protected in acting
in accordance herewith. 
 Section 10.09 Dual Fiduciary Capacity. Any person or group may serve in more than one fiduciary
capacity with respect to the Plan. 
 Section 10.10 Claims Procedure. 
 (a) All Benefit Claims must be filed on the appropriate claim forms available from the Committee or in accordance with the procedures
established by the Plan Administrative Committee for claim purposes. A “Benefit Claim” means a request for a Plan benefit or benefits, made by a Claimant or by an authorized representative of a Claimant, which complies with the Plan’s
procedures for making benefit claims. “Claimant” means a Participant or a beneficiary who is claiming entitlement to the payment of any benefit under the Plan. 
 (b) The Plan Administrative Committee will notify a Claimant, in accordance with subsection (c) below, of the Plan’s benefit
determination within a reasonable period of time after receipt of a Benefit Claim, but not later than ninety (90) days (forty-five (45) days in the case of a Disability Claim) after receipt of the Benefit Claim by the Plan. 
 If special circumstances require an extension of time for processing the Benefit Claim, the Plan Administrative Committee will notify the
Claimant of the extension prior to the termination of the initial period described above. The notice will indicate the special circumstances requiring the extension of time and the date by which the Plan expects to make the benefit determination. In
no event will the extension exceed a period of ninety (90) days from the end of the initial period. 
 In the case of a
Disability Claim, the extension period will not exceed 30 days, unless prior to the end of first thirty (30) day extension period, the Plan Administrative Committee determines that, due to matters beyond its control, a decision cannot be
rendered within the extension period, in which case the period for making the determination may be extended for an additional thirty (30) days. Every Disability Claim notice will specifically explain the standards on which entitlement to a
benefit is based, the unresolved issues that prevent a decision on the claim, the additional information needed to resolve those issues and the Claimant’s right to provide the specified information within forty-five (45) days. If the
extension is in effect due to the Claimant’s failure to submit information necessary to decide a Disability Claim, the period for making the benefit determination will be tolled from the date on which the notice of the extension is sent to the
Claimant until the date on which the Claimant responds to the request for information. The term “Disability Claim” means a request for a Plan benefit made by a Claimant due to the purported Total Disability of a Plan Participant.

  

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 (c) All notices given by the Plan Administrative Committee under the Plan will be given
to a Claimant, or to his or her authorized representative, in a manner that satisfies the standards of 29 CFR 2520.104b-1(b) as appropriate with respect to the particular material required to be furnished or made available to that individual. The
Plan Administrative Committee may provide a Claimant with either a written or an electronic notice of the Plan’s benefit determination. Any electronic notification will comply with the standards imposed by 29 CFR 2520.104b-1(c)(1)(i),
(iii) and (iv). In the case of an Adverse Benefit Determination, the notice will set forth, in a manner calculated to be understood by the Claimant: 
 (1) The specific reasons for the adverse determination; 
 (2) Reference to the specific Plan
provisions (including any internal rules, guidelines, protocols, criteria, etc.) on which the determination is based; 
 (3) A
description of any additional material or information necessary for the Claimant to complete the claim and an explanation of why such material or information is necessary; 
 (4) For a Disability Claim, the identification of any medical or vocational experts whose advice was obtained on behalf of the Plan in
connection with Claimant’s Adverse Benefit Determination, without regard to whether the advice was relied upon; and 
 (5) A description of the Plan’s review procedures and the time limits applicable to such procedures. 
 The term
“Adverse Benefit Determination” means a denial, reduction or termination of, or a failure to provide or make payment (in whole or in part) for, any benefit payable under the Plan. 
 (d) A Claimant who receives an Adverse Benefit Determination and desires a review of that determination must file, or his or her
authorized representative must file on his behalf, a written request for a review of the Adverse Benefit Determination, not later than sixty (60) days (one hundred eighty (180) days for a Disability Claim) after receiving the
determination. 
 The written request for a review must be filed with the Plan Administrative Committee. Upon receiving the
written request for review, the Plan Administrative Committee will advise the Claimant, or his or her authorized representative, in writing that: 
 (1) The Claimant, or his or her authorized representative, may submit written comments, documents, records, and any other information relating to the claim for benefits; and 
 (2) The Claimant will be provided, upon request of the Claimant or his or her authorized representative, reasonable access to, and copies
of, all documents, records, and other information relevant to the Claimant’s Benefit Claim, without regard to whether those documents, records, and information were considered or relied upon in making the Adverse Benefit Determination that is
the subject of the appeal. 
  

 44 

 (e) All appeals by a Claimant of an Adverse Benefit Determination will receive a full and
fair review by an appropriate Named Fiduciary of the Plan. In the case of a Disability Claim, the Named Fiduciary will not be: (i) the party who made the Adverse Benefit Determination that is the subject of the appeal, nor (ii) the
subordinate of that party. In performing this review for a Disability Claim, the Named Fiduciary will take into account all comments, documents, records, and other information submitted by the Claimant (or the Claimant’s authorized
representative) relating to the claim, without regard to whether the information was submitted or considered in the initial benefit determination, and will not afford deference to the initial Adverse Benefit Determination. For a Disability Claim,
the Named Fiduciary will consult with a healthcare professional who has appropriate training and experience in the field of medicine involved in the medical judgment and who was not consulted in connection with the Adverse Benefit Determination and
who is not the subordinate of such an individual if the Named Fiduciary believes that such a consultation is necessary to properly complete the review process. 
 (f) The Committee will notify a Claimant, in accordance with subsection (g) below, of the Plan’s benefit determination on review
within a reasonable period of time, but not later than sixty (60) days (forth-five (45) in the case of a Disability Claim) after the Plan’s receipt of the Claimant’s request for review of an Adverse Benefit Determination. If,
however, special circumstances require an extension of time for processing the review by the Named Fiduciary, the Claimant will be notified, prior to the termination of the initial sixty (60) (or forty-five (45)) day period, of the special
circumstances requiring the extension and the date by which the Plan expects to render the Plan’s benefit determination on review, which will not be later than one hundred twenty (120) days (ninety (90) days in the case of a
Disability Claim) after receipt of a request for review. Provided, however, in the case of a Plan with a Plan Administrative Committee or other group designated as the appropriate Named Fiduciary that holds regularly scheduled meetings at least
quarterly, the time limit of this subsection will be modified in accordance with 29 CFR 2560.503-1(i)(1)(ii) or 29 CFR 2560.503-1(i)(3)(ii), whichever is applicable. 
 If the extension period is in effect for a Disability Claim but the extension is due to the Claimant’s failure to submit information
necessary to decide a claim, the period for making the benefit determination on review will be tolled from the date on which notification of the extension is sent to the Claimant until the date on which the Claimant responds to the request for
additional information. 
 (g) The Plan Administrative Committee will provide a Claimant with notification of its benefit
determination on review in a method described in subsection (c) above. 
 In the case of an Adverse Benefit Determination
on review, the notification must set forth, in a manner calculated to be understood by the Claimant: 
 (1) The specific
reasons for the adverse determination on review; 
 (2) Reference to the specific Plan provisions (including any internal
rules, guidelines, protocols, criteria, etc.) on which the benefit determination on review is based; 
 (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 to the Claimant’s Benefit Claim, without regard to whether those records were
considered or relied upon in making the Adverse Benefit Determination on review, including any reports, and the identities, of any experts whose advice was obtained. 
  

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 Section 10.11 Bonds. Except as otherwise required or permitted by ERISA and regulations
thereunder, every fiduciary other than a bank or an insurance company shall be bonded in an amount not less than ten percent (10%) of the amount of funds handled by such fiduciary; provided, however, that the minimum bond for each fiduciary
shall be One Thousand Dollars ($1,000) and the maximum bond shall be the maximum established under ERISA. The amount of funds handled shall be determined at the beginning of each Plan Year by the amount of funds handled by such person, group, or
class to be covered and their predecessors, if any, during the preceding Plan Year, or if there is no preceding Plan Year, then by the amount of funds to be handled in the current Plan Year. The bond shall provide protection to the Plan against any
loss by reason of acts of fraud or dishonesty by the fiduciary alone or in conjunction with others. The surety shall be a corporate surety company (as defined in ERISA §412(a)), and the bond shall be in a form approved by the Secretary of
Labor. Notwithstanding anything in this Plan to the contrary, the cost of such bonds shall be an expense of, and may, at the election of the Plan Administrative Committee, be paid from the Trust Fund or by the Employer. 
 ARTICLE XI 
 RIGHTS OF EMPLOYER 

 Section 11.01 Discontinuance of Plan. It is the expectation of the Employer that it will continue this Plan indefinitely,
however the continuance of the Plan is not assumed as a contractual obligation of the Employer and the right is reserved by the Employer, at any time and from time to time, to reduce, suspend or discontinue its contributions hereunder or to
terminate this Plan. 
 Section 11.02 Effect of Discontinuance or Termination. Upon termination, partial termination, or upon
complete discontinuance of Employer contributions hereunder, the amount of the Trust Fund assets held by the Trustee shall first pay off any outstanding Exempt Loan and then shall be allocated subject to provision for expenses of administration or
liquidation in accordance with requirements of applicable law. The rights of all Participants to their Accounts, accrued to the date of termination, partial termination or discontinuance of contributions shall become fully vested and nonforfeitable.

 Section 11.03 Merger. In the event this Plan is merged into or consolidated with, or the assets and liabilities of this Plan
are transferred to, any other Plan, each Participant in the Plan shall have an Account balance immediately after the merger, consolidation or transfer which is equal to or greater than the Account balance he would have been entitled to receive
immediately before the merger, consolidation or transfer (if the Plan had then terminated). 
 Section 11.04 Amendment of Plan.
Except as herein limited, the Employer, through official action of its Board by resolution, shall have the right to amend this Plan at any time and from time to time to any extent that it may deem advisable. Such amendment shall be stated in writing
and executed by the Employer. This procedure shall constitute the Plan’s amendment procedure. Upon delivery of such amendment to the Trustee and the Plan Administrative Committee, this Plan shall be deemed to have been amended in the manner
therein set forth and all Participants shall be bound thereby; provided, however: 
 (a) That no amendment shall affect the
duties, rights or responsibilities of the Trustee or the Plan Administrative Committee without their respective written consents and any such amendment which so affects the Trustee or the Plan Administrative Committee shall not be effective unless
the Trustee and/or the Plan Administrative Committee, as applicable, execute the amendment. 
 (b) That no amendment shall
have the effect of vesting in the Employer any interest in or control over any contracts issued pursuant hereto or any other property subject to the terms of the Trust. 
 (c) That no amendment shall have any retroactive effect so as to deprive any Participant of any benefit already accrued; provided,
however, that any amendment may be made retroactive which is necessary to bring the Plan into conformity with any applicable law, including ERISA or Section 401(a) of the Code, in order to qualify the Plan for tax exemptions. 
  

 46 

 (d) That no amendment shall be effective if it authorizes or permits any part of the
Trust Fund to be used for any purpose other than for the exclusive benefit of Participants and Participant’s Beneficiaries. 
 Reserved
within this Section 11.04 is the right to amend distribution options under the Plan pursuant to Section 411(d)(6)(C) of the Code, as amended. 
 ARTICLE XII 
 ROLLOVERS 
 Section 12.01 Eligible Rollover Distributions. 
 (a) Notwithstanding any provision of the Plan to the contrary that would otherwise limit a distributee’s election under this Section, a distributee may elect, at the time and in the manner prescribed by the Plan
Administrative Committee, to have any portion of an eligible rollover distribution which is greater than $200 paid directly to an eligible retirement plan specified by the distributee in a direct rollover. 
 (b) Definitions. 
 Eligible rollover distribution: An eligible rollover distribution is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include: any distribution
that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the
distributee’s designated beneficiary, or for a specified period of ten years or more; any distribution to the extent such distribution is required under Section 401(a)(9) of the Code; and the portion of any distribution that is not
includable in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities). 
 (c) Eligible retirement plan: An eligible retirement plan is an individual retirement account described in Section 408(a) of the Code, an individual retirement annuity described in Section 408(b) of the
Code, an annuity plan described in Section 403(a) of the Code, a qualified trust described in Section 401(a) of the Code, an eligible Code Section 457(b) plan, or a Code Section 403(b) annuity, that accepts the distributee’s
eligible rollover distribution. 
 (d) Distributee: A distributee includes an employee or former employee. In addition, the
employee’s or former employee’s Surviving Spouse and the employee’s or former employee’s spouse or former spouse who is the Alternate Payee under a Qualified Domestic Relations Order, as defined in Section 414(p) of the
Code, are distributees with regard to the interest of the spouse or former spouse. 
 (e) Direct rollover: A direct rollover
is a payment by the Plan to the eligible retirement plan specified by the distributee. 
 Section 12.02 Plan-to-Plan Transfers.

 (a) This Plan will not accept rollovers as defined in Section 12.02(b). 
 (b) For purposes of this Plan the following constitute rollovers: (1) amounts transferred to this Plan directly from another
qualified plan; (2) distributions received by an Employee from another qualified retirement plan and which are transferred by the Employee to this 

  

 47 

 
Plan within sixty (60) days following receipt; (3) amounts transferred to this Plan from an individual retirement account which previously received
funds distributed to the Employee from another qualified plan; and (4) any other amounts which are eligible to be rolled over to this Plan pursuant to the Code. 
 ARTICLE XIII 
 MISCELLANEOUS 
 Section 13.01 Heading and Captions. The headings and captions herein are provided for reference and convenience only, shall not be considered
part of the Plan, and shall not be employed in the construction of the Plan. 
 Section 13.02 Gender and Number. Except where
otherwise clearly indicated by context, the masculine and the neuter shall include the feminine and the neuter, the singular shall include the plural, and vice-versa. 
 Section 13.03 Controlling Law. This Plan shall be construed and enforced according to the laws of the Commonwealth of Pennsylvania (without regard to the choice of law principles thereof) to the extent not
preempted by Federal law, which shall otherwise control. 
 Section 13.04 Title to Assets. No Participant or Beneficiary shall
have any right to, or interest in, any assets of the Trust Fund upon termination of his or her employment or otherwise, except as provided from time to time under this Plan, and then only to the extent of the benefits payable under the Plan to such
Participant or out of the assets of the Trust Fund. All payments of benefits as provided for in this Plan shall be made from the assets of the Trust Fund, and neither the Employer nor any other person shall be liable therefor in any manner.

 Section 13.05 Reliance on Data and Consents. The Employer, the Trustee, the Plan Administrative Committee, all fiduciaries
with respect to the Plan, and all other persons or entities associated with the operation of the Plan, the management of its assets, and the provision of benefits thereunder, may reasonably rely on the truth, accuracy and completeness of all data
provided by the Participant and his or her Beneficiaries, including, without limitation, data with respect to age, health and marital status. Furthermore, the Employer, the Trustee, the Plan Administrative Committee and all fiduciaries with respect
to the Plan may reasonably rely on all consents, elections and designations filed with the Plan or those associated with the operation of the Plan and its corresponding Trust by and Participant, the spouse of any Participant, any Beneficiary of any
Participant, or the representatives of such persons without duty to inquire into the genuineness of any such consent, election or designation. None of the aforementioned persons or entities associated with the operation of the Plan, its assets and
the benefits provided under the Plan shall have any duty to inquire into any such data, and all may rely on such data being current to the date of reference, it being the duty of the Participants, spouses of Participants and Beneficiaries to advise
the appropriate parties of any change in such data. 
 Section 13.06 Employees’ Plan Under the Code. This Plan is created
for the exclusive benefit of the Employees of the Employer, and their Beneficiaries, in accordance with the Code and ERISA. 
 Section 13.07 No Reversion to Employer of Funds or Assets of Trust. Unless expressly provided by the Plan, no funds contributed to this Plan or any assets of this Plan shall ever revert to or be used or enjoyed by the Employer
or the creditors of the Employer, nor shall any such funds or assets ever be used other than for the benefit of the Employees of the Employer or their Beneficiaries prior to the satisfaction of all liabilities under this Plan to the Participants and
their Beneficiaries. 
 Section 13.08 Prohibition Against Alienation and Assignment of Account. Except as may be required by the
tax withholding provisions of a federal, state or municipal tax act or pursuant to a Qualified Domestic Relations Order or pursuant to a judgment or settlement described in Code Section 401(a)(13)(C), benefits payable under this Plan are not
subject in any manner to sale, transfer, assignment, pledge, encumbrance, garnishment, or levy of any kind, either voluntary or involuntary, prior to actually being received by the person entitled to the benefit under the terms of the Plan; and any
attempt to sell, transfer, assign, pledge, encumber, or otherwise dispose of any right to 

  

 48 

 
benefits payable hereunder will be void. The Trust Fund will not be liable for, or subject to, the debts, contracts, liabilities, engagements or torts of any
person entitled to benefits hereunder. 
 Section 13.09 General Undertaking of all Parties to Plan. All parties to this Plan and
all persons claiming any interest whatsoever hereunder agree to perform any and all acts and execute any and all documents and papers which may be necessary or desirable for the carrying out of this Plan or any of its provisions. 
 Section 13.10 Agreement to Bind Heirs, Executors, Etc. This agreement shall be binding upon the heirs, executors, administrators, successors
and assigns, as such terms shall apply, of any and all parties hereto, and of any Participants, present and future. 
 Section 13.11
Plan Does Not Constitute Contract of Employment. This Plan shall not be construed as creating or changing any contract of employment between the Employer and its Employees, and the Employer retains the right to deal with its Employees and to
terminate their respective employment at any time to the same extent as though this Plan had not been created. 
 Section 13.12
Invalidity of Certain Provisions Does Not Invalidate All. If any provision of this Plan shall be held invalid or unenforceable, such invalidity or unenforceability shall not affect any other provision hereof and this Plan shall be construed
and enforced as if such provision had not been included. 
 Section 13.13 All Copies of Agreement Deemed Originals. This Plan may
be executed and/or conformed in any number of counterparts, each of which shall be deemed an original. 
 IN WITNESS WHEREOF, the
Company, by its officer thereunder duly authorized, has executed this Plan as of the date first above written. 
  

					
	ATTEST:	 	GRAYSTONE BANK—Employer
			
	 /s/ Dennis Dinger
	 	By:	 	 /s/ Andrew Samuel

	Secretary	 		 	Andrew Samuel, President & CEO

  

 49 

 FIRST AMENDMENT TO 
 GRAYSTONE BANK 
 401(k)/EMPLOYEE STOCK OWNERSHIP PLAN AND TRUST 
 This Amendment is adopted this 22nd day of July, 2008 and effective January 1, 2008 by Graystone Bank and Graystone Financial Corp. (the “Employer”). 
 W I T N E S S E T H: 
 WHEREAS, the Employer is authorized pursuant to the Plan to amend the Plan in
its discretion; 
 WHEREAS, pursuant to the formation of Graystone Financial Corp., Employer Stock under the Plan was exchanged for
stock of Graystone Financial Corp. stock, thus requiring certain technical amendment to the Plan; 
 WHEREAS, final regulations under
IRC Section 415 require that the Plan be amended to comply with the final IRC Section 415 Regulations for plan years beginning after July 1, 2007. 
 NOW, THEREFORE, the Plan is hereby amended as follows: 
 1. Section 1.12 is hereby amended as
follows: 
 Section 1.12 “Company Stock” means voting stock issued by GRAYSTONE FINANCIAL CORP. or any successor thereto, as
defined in and which meets the requirements of Sections 409(I) and 4975(e)(8) of the Code. 
 2. Section 1.24 is hereby amended as
follows: 
 Section 1.24 “Employer” means Graystone Bank and Graystone Financial Corp. or any successor entity by merger,
purchase or consolidation, or otherwise, and includes also, with the consent of the Board of Directors of the Employer, an Affiliated Employer which has elected to adopt this Plan or a business organization allied, associated, affiliated,
interrelated or subsidiary to the Employer or succeeding to its respective business which shall assume the obligations of this Plan with respect to its employees by becoming a party to this Plan, as provided hereinafter. 
 3. Section 1.48 is hereby amended as follows: 
 Section 1.48 “Plan” means the GRAYSTONE FINANCIAL CORP. 401(k)/Employee Stock Ownership Plan as set forth herein, and as the same may from time to time hereafter be amended. 
 4. Section 1.51 is hereby amended as follows: 
 Section 1.51 “Plan Sponsor” means Graystone Financial Corp. 
  

 1 

 5. Section 1.60 is hereby amended as follows: 
 Section 1.60 “Trust Agreement” means the GRAYSTONE FINANCIAL CORP. 401(k)/Employee Stock Ownership Trust Agreement created under this Plan
as the same is presently constituted, as it may hereafter be amended, and such additional and successor trust agreements as may be executed for the purpose of providing for the management of the assets of the Plan. 
 6. The Plan is amended by adding the attached (Schedule “A”) IRC Section 415 amendment effective January 1, 2008. 
 In all other respects, the Plan shall remain unchanged and in full force and effect. 
 IN WITNESS WHEREOF, the Employer has caused this Amendment to be executed as of the date set forth herein. 
  

			
	Graystone Financial Corp.
		
	By:	 	 /s/ Andrew S. Samuel

		 	President
	
	Graystone Bank
		
	By:	 	 /s/ Andrew S. Samuel

		 	President

  

 2

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