Document:

Exhibit 10.4

Exhibit 10.4

ATHENS FEDERAL COMMUNITY BANK

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (the “Agreement”) is entered into as April 1, 2010, by and among
ATHENS FEDERAL COMMUNITY BANK, a federally-chartered savings bank (the “Bank”), and MICHAEL R.
HUTSELL (the “Executive”), and ATHENS BANCSHARES CORPORATION (the “Corporation”), the holding
company of the Bank, solely as guarantor.

WHEREAS, the Executive serves in a position of substantial responsibility with the Bank; and

WHEREAS, the Bank wishes to set forth the terms of the Executive’s continued employment in
this position; and

WHEREAS, the Executive is willing and desires to serve in this position with the Bank.

NOW THEREFORE, in consideration of these premises, the mutual covenants contained herein, and
other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows.

ARTICLE 1

EMPLOYMENT

1.1 Employment. The Bank hereby employs the Executive to serve as Chief Operating
Officer and Chief Financial Officer of the Bank according to the terms and conditions of this
Agreement and for the period stated in Section 1.3 of this Agreement. The Executive hereby accepts
employment according to the terms and conditions of this Agreement and for the period stated in
Section 1.3 of this Agreement.

1.2 Responsibilities and Duties.

(a) As Chief Operating Officer and Chief Credit Officer, the Executive shall report to the
Chief Executive Officer and will perform all duties and will have all powers associated with these
positions, as set forth in any job description provided to the Executive by the Bank or as may be
set forth in the bylaws of the Bank.

(b) During the period of his employment hereunder, except for reasonable periods of absence
occasioned by illness, reasonable vacation periods, and other reasonable leaves of absence approved
by the board of directors of the Bank, the Executive will devote all of his business time,
attention, skill and efforts to the faithful performance of his duties under this Agreement,
including activities and duties directed by the Chief Executive Officer and the board of directors
of the Bank. Notwithstanding the preceding sentence, subject to the approval of the board of
directors of the Bank, the Executive may serve as a member of the board of directors of business,
community and charitable organizations, provided that in each case the service shall not materially
interfere with the performance of his duties under this Agreement, adversely affect the reputation
of the Bank or any other affiliates of the Bank, or present any conflict of interest. Nothing in
this Section 1.2 shall prevent the Executive from managing personal investments and affairs,
provided that doing so also does not interfere with the proper performance of the Executive’s
duties and responsibilities under this Agreement.

 

 

 

1.3 Term.

(a) The term of this Agreement shall include: (i) the initial term, consisting of the period
commencing on the date of this Agreement (the “Effective Date”) and continuing for thirty-six (36)
full months thereafter, plus (ii) any and all extensions of the initial term made pursuant to this
Section 1.3.

(b) Commencing as of the first anniversary of the Effective Date and continuing as of each
anniversary of the Effective Date thereafter, the disinterested members of the board of directors
of the Bank may extend the Agreement term for an additional year, so that the remaining term of the
Agreement again becomes thirty-six (36) full months from the applicable anniversary of the
Effective Date, unless the Executive elects not to extend the term of this Agreement by giving
written notice at least thirty (30) days prior to the applicable anniversary date.

(c) The disinterested members of the board of directors of the Bank will review the Agreement
and the Executive’s performance annually for purposes of determining whether to extend the
Agreement term and will include the rationale and results of its review in the minutes of the
meetings. The board of directors will notify the Executive no earlier than sixty (60) days and no
later than thirty (30) days prior to the applicable anniversary date whether it has determined to
extend the Agreement.

(d) Nothing in this Agreement shall mandate or prohibit a continuation of the Executive’s
employment following the expiration of the term of this Agreement, upon such terms and conditions
as the Bank and the Executive may mutually agree.

ARTICLE 2

COMPENSATION AND BENEFITS

2.1 Base Salary and Bonus.

(a) In consideration of the Executive’s performance of the obligations under this Agreement,
the Bank shall pay or cause to be paid to the Executive a salary at the annual rate of not less
than One Hundred Seventy Five Thousand Dollars ($175,000.00), payable according to the regular
payroll practices of the Bank. During the period of this Agreement, the Executive’s Base Salary
shall be reviewed at least annually by the compensation committee designated by the board of
directors of the Bank. Any increase in Base Salary will become the “Base Salary” for purposes of
this Agreement.

(b) The Executive shall be eligible for a discretionary annual bonus, as determined by the
board of directors of the Bank.

2.2 Benefit Plans and Perquisites. For as long as the Executive is employed by the
Bank, the Executive shall be eligible (x) to participate in any and all officer or employee
compensation, incentive compensation and benefit plans in effect from time to time, including
without limitation plans providing retirement, medical, dental, disability, and group life benefits
and including stock-based compensation, incentive, or bonus plans existing on the date of this
Agreement or adopted after the date of this Agreement, provided that the Executive satisfies the
eligibility requirements for any the plans or benefits, and (y) to receive any and all other fringe
and other benefits provided from time to time, including the specific items described in (a)-(c)
below.

(a) Reimbursement of business expenses. The Executive shall be entitled to
reimbursement for all reasonable business expenses incurred while performing his obligations under
this Agreement, including but not limited to all reasonable business travel and entertainment
expenses incurred while
acting at the request of or in the service of the Bank. Expenses will be reimbursed if they
are submitted in accordance with the Bank’s policies and procedures.

 

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(b) Automobile. The Bank shall provide the Executive with vehicle reimbursement per
company policy.

(c) Facilities. The Bank will furnish the Executive with the working facilities and
staff customary for executive officers with the comparable titles and duties of the Executive as
set forth in Sections 1.1 and 1.2 of this Agreement and as are necessary for the Executive to
perform his duties. The location of such facilities and staff shall be at the principal
administrative offices of the Bank, or at such other site or sites customary for such offices.

2.3 Vacation; Leave. The Executive shall be entitled to sick leave and paid annual
vacation (of at least four weeks of vacation) in accordance with policies established from time to
time by the Bank. In addition to paid vacations and other leave, the board of directors may grant
the Executive a leave or leaves of absence, with or without pay, at such time or times and upon
such terms and conditions as the board of directors may determine.

2.4 Insurance. The Bank shall maintain or cause to be maintained, director and officer
liability insurance covering the Executive throughout the term of this Agreement.

ARTICLE 3

EMPLOYMENT TERMINATION

3.1 Termination of Employment.

(a) Death. The Executive’s employment shall terminate automatically at the Executive’s
death. If the Executive dies in active service to the Bank, the Executive’s estate or beneficiaries
designated by the Executive on a beneficiary designation form attached to this Agreement shall
receive any sums that would have otherwise been due to the Executive as Base Salary and
reimbursement of expenses through the end of the then remaining term of the Agreement, payable in a
single lump sum no later than nine (9) months from the date of the Executive’s death.

(b) Disability. By delivery of written notice thirty (30) days in advance to the
Executive, the Bank may terminate the Executive’s employment if the Executive is disabled. For
purposes of this Agreement the Executive shall be considered “disabled” if an independent physician
selected by the Bank and reasonably acceptable to the Executive or the Executive’s legal
representative determines that, because of illness or accident, the Executive is unable to perform
the Executive’s duties and will be unable to perform the Executive’s duties for a period of ninety
(90) consecutive days. The Executive shall not be considered disabled, however, if the Executive
returns to work on a full-time basis within thirty (30) days after the Bank gives notice of
termination due to disability. If the Executive is also employed by the Corporation is terminated
by the Corporation because of disability, the Executive’s employment with the Bank shall also
terminate at the same time. During the period of incapacity leading up to the termination of the
Executive’s employment under this provision, the Bank shall continue to pay the full Base Salary at
the rate then in effect and pay or provide all perquisites and other benefits (other than bonus),
provided that the amount of the payments by the Bank to the Executive under this Section 3.1(b)
shall be reduced by the sum of the amounts, if any, payable to the Executive for the same period
under any disability benefit plan covering the Executive.

 

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3.2 Involuntary Termination with Cause. The Bank may terminate the Executive’s
employment for Cause. If the Executive’s employment terminates for Cause, the Executive shall
receive
the Base Salary through the date on which the termination of employment becomes effective and
reimbursement of expenses to which the Executive is entitled when termination becomes effective.
If the Executive is employed by the Corporation and is terminated for Cause by the Corporation, the
Executive shall be deemed also to have been terminated for Cause by the Bank. The Executive shall
not be deemed to have been terminated for Cause under this Agreement unless and until there is
delivered to the Executive a copy of a resolution adopted at a meeting of the board of directors
called and held for the purpose, which resolution shall (x) contain findings that the Executive has
committed an act constituting Cause, and (y) specify the particulars thereof. The resolution of
the board of directors shall be deemed to have been duly adopted if and only if it is adopted by
the affirmative vote of a majority of the directors of the Bank then in office, excluding the
Executive. Notice of the meeting and the proposed termination for Cause shall be given to the
Executive a reasonable time before the meeting of the board of directors. The Executive and the
Executive’s counsel (if the Executive chooses to have counsel present) shall have a reasonable
opportunity to be heard by the board of directors at the meeting. For purposes of this Agreement
“Cause” means any of the following:

(1) a material act of dishonesty in performing Executive’s duties on behalf of the Bank;

(2) a willful misconduct that in the judgment of the board of directors will likely cause
economic damage to the Bank or its affiliates or injury to the business reputation of the Bank or
its affiliates;

(3) incompetence (in determining incompetence, the acts or omissions shall be measured against
standards generally prevailing in the savings institutions industry);

(4) a breach of fiduciary duty involving personal profit;

(5) the intentional failure to perform stated duties under this Agreement after written notice
thereof from the board of directors;

(6) a willful violation of any law, rule or regulation (other than minor or routine traffic
violations or similar offenses) that reflects adversely on the reputation of the Bank, any felony
conviction, any violation of law involving moral turpitude, or any violation of a final
cease-and-desist order; or

(7) a material breach by the Executive of any provision of this Agreement.

No act, or failure to act, on the Executive’s part shall be considered “willful” unless he has
acted, or failed to act, with an absence of good faith and without reasonable belief that his
action or failure to act was in the best interest of the Bank.

3.3 Voluntary Termination by the Executive Without Good Reason. In addition to his
other rights to terminate his employment under this Agreement, Executive may voluntarily terminate
employment during the term of this Agreement upon at least ninety (90) days prior written notice to
the board of directors of the Bank. Upon Executive’s voluntary termination, he will receive only
his compensation and vested rights and benefits to the date of his termination of employment.
Following his voluntary termination of employment under this Section 3.3, the Executive will be
subject to the restrictions set forth in Article 7.

 

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3.4 Involuntary Termination Without Cause and Voluntary Termination with Good Reason.
With written notice to the Executive at least thirty (30) days in advance, the Bank may terminate
the Executive’s employment without Cause. Termination shall take effect at the end of the
notice period. With advance written notice to the Bank as provided in clause (y), the Executive
may terminate employment for Good Reason. If the Executive’s employment terminates involuntarily
without Cause or voluntarily but with Good Reason, the Executive shall be entitled to the benefits
specified in Article 4 of this Agreement. For purposes of this Agreement, a voluntary termination
by the Executive shall be considered a voluntary termination with Good Reason if the conditions
stated in both clauses (x) and (y) of this Section 3.4 are satisfied:

(x) a voluntary termination by the Executive shall be considered a voluntary termination with
Good Reason if any of the following occur without the Executive’s written consent, and the term
Good Reason shall mean the occurrence of any of the following without the Executive’s written
consent:

(1) a failure to reelect or reappoint the Executive as Chief Operating Officer or Chief
Financial Officer of the Bank (provided, however, that a change in the Executive’s position
consented to in writing by the Executive, shall not be deemed a Good Reason);

(2) a material change in Executive’s position to become one of lesser responsibility,
importance, or scope from the position and attributes thereof described in Sections 1.1 and 1.2 of
this Agreement (provided, however, that a reduction in duties and responsibilities consented to in
writing by the Executive in connection with succession planning of the Bank, shall not be deemed a
Good Reason);

(3) a liquidation or dissolution of the Bank, other than liquidations or dissolutions that are
caused by reorganizations that do not affect the status of the Executive;

(4) a material reduction in Executive’s Base Salary or benefits required to be provided
hereunder (other than a reduction that is generally applicable to the Bank’s executive employees or
a reduction or elimination of the Executive’s benefits under one or more benefit plans maintained
by the Bank as part of a good faith, overall reduction or elimination of such plans or benefits
applicable to all participants in a manner that does not discriminate against the Executive (except
as such discrimination may be necessary to comply with applicable law));

(5) a relocation of the Executive’s principal place of employment by more than twenty-five
(25) miles from its location as of the date of this Agreement; or

(6) a material breach of this Agreement by the Bank.

(y) the Executive must give notice to the Bank of the existence of one or more of the
conditions described in clause (x) within sixty (60) days after the initial existence of the
condition, and the Bank shall have thirty (30) days thereafter to remedy the condition. In
addition, the Executive’s voluntary termination because of the existence of one or more of the
conditions described in clause (x) must occur within six (6) months after the initial existence of
the condition.

ARTICLE 4

SEVERANCE COMPENSATION

4.1 Cash Severance after Termination Without Cause or Termination for Good Reason.

(a) Subject to the possibility that cash severance after employment termination might be
delayed under Section 4.1(b), if the Executive’s employment terminates involuntarily but without
Cause or if the Executive voluntarily terminates employment with Good Reason, the Executive shall
for the

 

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unexpired term of this Agreement, plus an additional twelve (12) months, and in accordance
with the Bank’s regular pay practices, continue to receive the Base Salary in effect at the
Executive’s termination of employment. However, the Bank and the Executive acknowledge and agree
that the severance benefits under this Section 4.1 shall not be payable if severance benefits are
payable or shall have been paid to the Executive under Article 5 of this Agreement.

(b) If when employment termination occurs the Executive is a “specified employee” within the
meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), if the cash
severance payment under Section 4.1(a) would be considered deferred compensation under Section 409A
of the Code, and finally if an exemption from the six-month delay requirement of Section
409A(a)(2)(B)(i) of the Code is not available, the Executive’s continued Base Salary under Section
4.1(a) for the first six months after employment termination shall be paid to the Executive in a
single lump sum without interest on the first day of the seventh (7th) month after the
month in which the Executive’s employment terminates and all remaining payments shall be made as
originally scheduled. References in this Agreement to Section 409A of the Code include rules,
regulations, and guidance of general application issued by the Department of the Treasury under
Section 409A of the Code.

4.2 Post-Termination Insurance Coverage.

(a) If the Executive’s employment terminates involuntarily but without Cause or voluntarily
but with Good Reason, or because of disability, the Bank shall continue or cause to be continued at
the Bank’s expense medical and life insurance benefits for the Executive and any of his dependents
covered at the time of his termination. The medical insurance benefits shall continue until the
first to occur of (w) the Executive’s return to employment with the Bank or another employer, (x)
the Executive’s attainment of age 65, (y) the Executive’s death, or (z) the end of the term
remaining under this Agreement when the Executive’s employment terminates. Notwithstanding the
foregoing, if the Executive’s employment terminate for any reason, other than for Cause, after the
Executive has attained age 55, the Bank shall provide the Executive and his dependents with medical
insurance coverage that is not less favorable than the Bank provides for other executive officers,
at no cost to the Executive, until the Executive first becomes eligible for Medicare. This last
sentence shall survive the expiration of this Agreement.

(b) If (x) under the terms of the applicable policy or policies for the insurance benefits
specified in Section 4.2(a) it is not possible to continue coverage for the Executive and his
dependents, or (y) when employment termination occurs the Executive is a “specified employee”
within the meaning of Section 409A of the Code, if any of the continued insurance coverage benefits
specified in Section 4.2(a) would be considered deferred compensation under Section 409A of the
Code, and finally, if an exemption from the six-month delay requirement of Section 409A(a)(2)(B)(i)
of the Code is not available for that particular insurance benefit, the Bank shall pay to the
Executive in a single lump sum an amount in cash equal to the present value of the Bank’s projected
cost to maintain that particular insurance benefit (and associated income tax gross-up benefit, if
applicable) had the Executive’s employment not terminated, assuming continued coverage for 36
months. The lump-sum payment shall be made thirty (30) days after employment termination or, if
Section 4.1(b) applies, on the first day of the seventh (7th) month after the month in
which the Executive’s employment terminates.

ARTICLE 5

CHANGE IN CONTROL BENEFITS

5.1 Change in Control Benefits. If a Change in Control occurs during the term of this
Agreement and, thereafter, the Executive’s employment terminates involuntarily but without Cause or
if the Executive voluntarily terminates employment with Good Reason, the Bank shall make or cause
to be made a lump-sum payment to the Executive in an amount in cash equal to three (3) times the
Executive’s

 

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average annual compensation. For this purpose, average annual compensation means the
Executive’s taxable income reported by the Bank (or any affiliate of the Bank) for the five (5)
calendar years immediately preceding the calendar year in which the Change in Control occurs. The
payment required under this paragraph is payable no later than five (5) business days after the
Executive’s termination of employment. If the Executive receives payment under Section 5.1, the
Executive shall not be entitled to any additional severance benefits under Section 4.1 of this
Agreement. In addition to the cash severance benefit provided for under this Section 5.1, the Bank
shall provide the Executive with the post-termination insurance coverage described in Section
4.2(a) of this Agreement, subject to the provisions of Section 4.2(b) of this Agreement.

5.2 Change in Control Defined. For purposes of this Agreement “Change in Control”
means a change in control as defined in Section 409A of the Code and rules, regulations, and
guidance of general application thereunder issued by the Department of the Treasury, including:

(a) Change in ownership: a change in ownership of the Corporation occurs on the date
any one person or group accumulates ownership of Corporation stock constituting more than 50% of
the total fair market value or total voting power of Corporation stock;

(b) Change in effective control: (x) any one person or more than one person acting as
a group acquires within a 12-month period ownership of Corporation stock possessing 30% or more of
the total voting power of Corporation stock, or (y) a majority of the Corporation’s board of
directors is replaced during any 12-month period by directors whose appointment or election is not
endorsed in advance by a majority of the Corporation’s board of directors; or

(c) Change in ownership of a substantial portion of assets: a change in ownership of a
substantial portion of the Corporation’s assets occurs if in a 12-month period any one person or
more than one person acting as a group acquires from the Corporation assets having a total gross
fair market value equal to or exceeding 40% of the total gross fair market value of all of the
Corporation’s assets immediately before the acquisition or acquisitions. For this purpose, gross
fair market value means the value of the Corporation’s assets, or the value of the assets being
disposed of, determined without regard to any liabilities associated with the assets.

5.3 Potential Limitation of Benefits Under Certain Circumstances. Notwithstanding any
other provisions of this Agreement, in the event that (x) the aggregate payments or benefits to be
made or afforded to the Executive under this Agreement or otherwise, which are deemed to be
parachute payments as defined in Section 280G of the Code or any successor thereof (the
“Termination Benefits”) would be deemed to include an “excess parachute payment” under Section 280G
of the Code; and (y) if such Termination Benefits were reduced to an amount (the “Non-Triggering
Amount”), the value of which is one dollar ($1.00) less than an amount equal to three (3) times the
Executive’s “base amount,” as determined in accordance with Section 280G of the Code and the
Non-Triggering Amount less the product of the marginal rate of any applicable state and federal
income tax and the Non-Triggering Amount would be greater than the aggregate value of the
Termination Benefits (without such reduction) minus (1) the amount of tax required to be paid by
the Executive thereon by Section 4999 of the Code and further minus (2) the product of the
Termination Benefits and the marginal rate of any applicable state and federal income tax, then the
Termination Benefits shall be reduced to the Non-Triggering Amount. The allocation of the
reduction required hereby among the Termination Benefits shall be determined by the Executive.
Notwithstanding the foregoing, the Bank shall not pay the Executive Termination Benefits in excess
of three (3) times his average annual compensation (or such other amount that may be permitted by
the Office of Thrift Supervision pursuant to regulation or regulatory guidance). The Bank’s
independent public accountants will determine the value of any reduction in the payments and
benefits; the Bank will pay for the accountants’ opinion. The Bank may request, and the Executive
has the right to

 

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demand that, a ruling from the IRS as to whether any disputed payments and benefits have
adverse tax consequences. The Bank will promptly prepare and file the request for a ruling from
the IRS, but in no event will the Bank make this filing later than thirty (30) days from the date
of the accountant’s opinion referred to above. The request will be subject to the Executive’s
approval prior to filing; the Executive shall not unreasonably withhold his approval. The Bank and
the Executive agree to be bound by any ruling received from the IRS and to make appropriate
payments to each other to reflect any IRS rulings, together with interest at the applicable federal
rate provided for in Section 7872(f)(2) of the Code. Nothing contained in this Agreement shall
result in a reduction of any payments or benefits to which the Executive may be entitled upon
termination of employment other than pursuant to Sections 4 and 5 hereof, or a reduction in the
payments and benefits specified, below zero.

ARTICLE 6

CONFIDENTIALITY AND CREATIVE WORK

6.1 Non-disclosure. The Executive covenants and agrees not to reveal to any person,
firm, or corporation any confidential information of any nature concerning the Bank or its
business, or anything connected therewith. As used in this Article 6 the term “confidential
information” means all of the Bank and the Bank’s affiliates’ confidential and proprietary
information and trade secrets in existence on the date hereof or existing at any time during the
term of this Agreement, including but not limited to:

(a) the whole or any portion or phase of any business plans, financial information, purchasing
data, supplier data, accounting data, or other financial information;

(b) the whole or any portion or phase of any research and development information, design
procedures, algorithms or processes, or other technical information;

(c) the whole or any portion or phase of any marketing or sales information, sales records,
customer lists, prices, sales projections, or other sales information; and

(d) trade secrets, as defined from time to time by the laws of Tennessee.

This Section 6.1 does not prohibit disclosure required by an order of a court having
jurisdiction or a subpoena from an appropriate governmental agency or disclosure made by the
Executive in the ordinary course of business and within the scope of the Executive’s authority.

6.2 Return of Materials. The Executive agrees to immediately deliver or return to the
Bank upon termination, upon expiration of this Agreement, or as soon thereafter as possible, all
written information and any other similar items furnished by the Bank or prepared by the Executive
in connection with the Executive’s services hereunder and to immediately delete all electronically
stored data of the Bank maintained on the Executive’s personal computers and to return all
Bank-provided computers or communication devices (i.e., laptop, Blackberry, PDA, etc.). The
Executive will retain no copies thereof after termination of this Agreement or termination of the
Executive’s employment.

6.3 Creative Work. The Executive agrees that all creative work and work product,
including but not limited to all technology, business management tools, processes, software,
patents, trademarks, and copyrights developed by the Executive during the term of this Agreement,
regardless of when or where such work or work product was produced, constitutes work made for hire,
all rights of which are owned by the Bank. The Executive hereby assigns to the Bank all rights,
title, and interest, whether by way of copyrights, trade secret, trademark, patent, or otherwise,
in all such work or work product, regardless of whether the same is subject to protection by
patent, trademark, or copyright laws.

 

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6.4 Affiliates’ Confidential Information is Covered; Confidentiality Obligation Survives
Termination. For purposes of this Agreement, the term “affiliate” of the Bank includes any
entity that directly, or indirectly through one or more intermediaries, controls, is controlled by,
or is under common control of the Bank. The rights and obligations set forth in this Article 6
shall survive termination of this Agreement.

6.5 Injunctive Relief. The Executive acknowledges that it is impossible to measure in
money the damages that will accrue to the Bank if the Executive fails to observe the obligations
imposed by this Article 6. Accordingly, if the Bank institutes an action to enforce the provisions
hereof, the Executive hereby waives the claim or defense that an adequate remedy at law is
available to the Bank, and the Executive agrees not to urge in any such action the claim or defense
that an adequate remedy at law exists. The confidentiality and remedies provisions of this Article
6 shall be in addition to and shall not be deemed to supersede or restrict, limit, or impair the
Bank’s rights under applicable state or federal statute or regulation dealing with or providing a
remedy for the wrongful disclosure, misuse, or misappropriation of trade secrets or proprietary or
confidential information.

ARTICLE 7

COMPETITION AFTER EMPLOYMENT TERMINATION

7.1 Covenant Not to Solicit Employees. The Executive agrees not to, directly or
indirectly, solicit or employ the services of any officer or employee of the Bank (including an
individual who was an officer or employee of the Bank during the one year period following the
Executive’s termination) for two years after the Executive’s employment termination.

7.2 Covenant Not to Compete.

(a) The Executive covenants and agrees not to compete directly or indirectly with the Bank for
one year after employment termination. For purposes of this Section 7.2:

	 	(1)	 	the term compete means:

	 	(i)	 	providing financial products or services on
behalf of any financial institution for any person residing in the
territory,

	 
	 	(ii)	 	assisting (other than through the performance
of ministerial or clerical duties) any financial institution in
providing financial products or services to any person residing in the
territory, or

	 
	 	(iii)	 	inducing or attempting to induce any person
who was a customer of the Bank at the date of the Executive’s
employment termination to seek financial products or services from
another financial institution.

	 	(2)	 	the words directly or indirectly mean:

	 	(i)	 	acting as a consultant, officer, director,
independent contractor, or employee of any financial institution in
competition with the Bank in the territory, or

	 
	 	(ii)	 	communicating to such financial institution the
names or addresses or any financial information concerning any person
who was a customer of the Bank when the Executive’s employment
terminated.

 

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	 	(3)	 	the term customer means any person to whom the Bank is
providing financial products or services on the date of the Executive’s
employment termination or within one year thereafter.

	 
	 	(4)	 	the term financial institution means any bank, savings
association, or bank or savings association holding company, or any other
institution, the business of which is engaging in activities that are financial
in nature or incidental to such financial activities as described in Section
4(k) of the Bank Holding Company Act of 1956, other than the Bank or any of its
affiliated corporations.

	 
	 	(5)	 	financial product or service means any product or service that
a financial institution or a financial holding company could offer by engaging
in any activity that is financial in nature or incidental to such a financial
activity under Section 4(k) of the Bank Holding Company Act of 1956 and that is
offered by the Bank or an affiliate on the date of the Executive’s employment
termination, including but not limited to banking activities and activities
that are closely related and a proper incident to banking.

	 
	 	(6)	 	the term person means any individual or individuals,
corporation, partnership, fiduciary or association.

	 
	 	(7)	 	the term territory means the area within a 30-mile radius of
any office of the Bank at the date of the Executive’s employment termination.

(b) If any provision of this Article 7 or any word, phrase, clause, sentence or other portion
thereof (including, without limitation, the geographical and temporal restrictions contained
therein) is held to be unenforceable or invalid for any reason, the unenforceable or invalid
provision or portion shall be modified or deleted so that the provisions hereof, as modified, are
legal and enforceable to the fullest extent permitted under applicable law.

(c) The Executive acknowledges that the Bank’s willingness to enter into this Agreement and to
make the payments contemplated by Articles 3 and 4 of this Agreement is conditioned on the
Executive’s acceptance of the covenants set forth in Articles 6 and 7 of this Agreement and that
the Bank would not have entered into this Agreement without such covenants in force.

7.3 Injunctive and Other Relief. Because of the unique character of the services to be
rendered by the Executive hereunder, the Executive understands that the Bank would not have an
adequate remedy at law for the material breach or threatened breach by the Executive of any one or
more of the Executive’s covenants in this Article 7. Accordingly, the Executive agrees that the
Bank’s remedies for a breach of this Article 7 include, but are not limited to, (x) forfeiture of
any money representing accrued salary, contingent payments, or other fringe benefits (including any
amount payable pursuant to Article 4) due and payable to the Executive during the period of any
breach by the Executive, and (y) a suit in equity by the Bank to enjoin the Executive from the
breach or threatened breach of such covenants. The Executive hereby waives the claim or defense
that an adequate remedy at law is available to the Bank and the Executive agrees not to urge in any
such action the claim or defense that an adequate remedy at law exists. Nothing herein shall be
construed to prohibit the Bank from pursuing any other or additional remedies for the breach or
threatened breach.

 

10

 

7.4 Article 7 Survives Termination But Is Void After a Change in Control. The rights
and obligations set forth in this Article 7 shall survive termination of this Agreement. However,
Article 7 shall become null and void effective immediately upon a Change in Control.

ARTICLE 8

MISCELLANEOUS

8.1 Successors and Assigns.

(a) This Agreement shall be binding upon the Bank and any successor to the Bank, including any
persons acquiring directly or indirectly all or substantially all of the business or assets of the
Bank by purchase, merger, consolidation, reorganization, or otherwise, but this Agreement and the
Bank’s obligations under this Agreement are not otherwise assignable, transferable, or delegable by
the Bank. By agreement in form and substance satisfactory to the Executive, the Bank shall require
any successor to all or substantially all of the business or assets of the Bank expressly to assume
and agree to perform this Agreement in the same manner and to the same extent the Bank would be
required to perform had no succession occurred.

(b) This Agreement shall inure to the benefit of and be enforceable by the Executive’s
personal or legal representatives, executors, administrators, successors, heirs, distributees, and
legatees.

(c) Without written consent of the other parties, no party shall assign, transfer, or delegate
this Agreement or any rights or obligations under this Agreement, except as expressly provided
herein. Without limiting the generality or effect of the foregoing, the Executive’s right to
receive payments hereunder is not assignable or transferable, whether by pledge, creation of a
security interest, or otherwise, except for a transfer by the Executive’s will or by the laws of
descent and distribution. If the Executive attempts an assignment or transfer that is contrary to
this Section 8.1, the Bank shall have no liability to pay any amount to the assignee or transferee.

8.2 Governing Law, Jurisdiction and Forum. This Agreement shall be construed under and
governed by the internal laws of the State of Tennessee, without giving effect to any conflict of
laws provision or rule that would cause the application of the laws of any jurisdiction other than
Tennessee. By entering into this Agreement, the Executive acknowledges that the Executive is
subject to the jurisdiction of both the federal and state courts in Tennessee.

8.3 Entire Agreement. This Agreement sets forth the entire agreement of the parties
concerning the employment of the Executive by the Bank. Any oral or written statements,
representations, agreements, or understandings made or entered into prior to or contemporaneously
with the execution of this Agreement are hereby rescinded, revoked, and rendered null and void by
the parties.

8.4 Notices. All notices, requests, demands, and other communications hereunder shall
be in writing and shall be deemed to have been duly given if delivered by hand or mailed, certified
or registered mail, return receipt requested, with postage prepaid. Unless otherwise changed by
notice, notice shall be properly addressed to the Executive if addressed to the address of the
Executive on the books and records of the Bank at the time of the delivery of such notice, and
properly addressed to the Bank if addressed to the board of directors of the Bank at the Bank’s
executive offices.

8.5 Severability. If there is a conflict between any provision of this Agreement and
any statute, regulation, or judicial precedent, the latter shall prevail, but the affected
provisions of this Agreement shall be curtailed and limited solely to the extent necessary to bring
them within the requirements of law. If any provisions of this Agreement is held by a court of
competent jurisdiction to
be indefinite, invalid, void or voidable, or otherwise unenforceable, the remainder of this
Agreement shall continue in full force and effect unless that would clearly be contrary to the
intentions of the parties or would result in an injustice.

 

11

 

8.6 Captions and Counterparts. The captions in this Agreement are solely for
convenience. The captions do not define, limit, or describe the scope or intent of this Agreement.
This Agreement may be executed in several counterparts, each of which shall be deemed to be an
original but all of which together shall constitute one and the same instrument.

8.7 No Duty to Mitigate. The Executive shall not be required to mitigate the amount
of any payment provided for in this Agreement by seeking other employment. Moreover, provided the
Executive is not in breach of any obligation under Articles 6 and 7 of this Agreement, the amount
of any payment provided for in this Agreement shall not be reduced by any compensation earned or
benefits provided as the result of employment of the Executive or as a result of the Executive
being self-employed after employment termination.

8.8 Amendment and Waiver. This Agreement may not be amended, released, discharged,
abandoned, changed, or modified in any manner, except by an instrument in writing signed by each of
the parties hereto. The failure of any party hereto to enforce at any time any of the provisions
of this Agreement shall not be construed to be a waiver of any such provision, nor affect the
validity of this Agreement or any part thereof or the right of any party thereafter to enforce each
and every such provision. No waiver or any breach of this Agreement shall be held to be a waiver
of any other or subsequent breach.

8.9 Compliance with Internal Revenue Code Section 409A. The Bank and the Executive
intend that their exercise of authority or discretion under this Agreement shall comply with
Section 409A of the Code. If any provision of this Agreement does not satisfy the requirements of
Section 409A of the Code, the provision shall nevertheless be applied in a manner consistent with
those requirements. If any provision of this Agreement would subject the Executive to additional
tax or interest under Section 409A of the Code, the Bank shall reform the provision. However, the
Bank shall maintain to the maximum extent practicable the original intent of the applicable
provision without subjecting the Executive to additional tax or interest, and the Bank shall not be
required to incur any additional compensation expense as a result of the reformed provision.

8.10 Required Provisions. In the event any of the foregoing provisions of this
Agreement conflict with the terms of this Section 8.10, this Section 8.10 shall prevail.

(a) The Bank’s board of directors may terminate the Executive’s employment at any time, but
any termination by the Bank, other than termination for Cause, shall not prejudice the Executive’s
right to compensation or other benefits under this Agreement. The Executive shall not have the
right to receive compensation or other benefits for any period after termination for Cause as
defined in Section 3.2 of this Agreement.

(b) If the Executive is suspended from office and/or temporarily prohibited from participating
in the conduct of the Bank’s affairs by a notice served under Section 8(e)(3) or 8(g)(1) of the
Federal Deposit Insurance Act, 12 U.S.C. Section 1818(e)(3) or (g)(1), the Bank’s obligations under
this Agreement shall be suspended as of the date of service, unless stayed by appropriate
proceedings. If the charges in the notice are dismissed, the Bank may, in its discretion: (i) pay
the Executive all or part of the compensation withheld while its contract obligations were
suspended; and (ii) reinstate (in whole or in part) any of the obligations which were suspended.

 

12

 

(c) If the Executive is removed and/or permanently prohibited from participating in the
conduct of the Bank’s affairs by an order issued under Section 8(e)(4) or 8(g)(1) of the Federal
Deposit Insurance Act, 12 U.S.C. Section 1818(e)(4) or (g)(1), all obligations of the Bank under
this Agreement shall terminate as of the effective date of the order, but vested rights of the
contracting parties shall not be affected.

(d) If the Bank is in default as defined in Section 3(x)(1) of the Federal Deposit Insurance
Act, 12 U.S.C. Section 1813(x)(1), all of the Bank’s obligations under this Agreement shall
terminate as of the date of default, but this paragraph shall not affect any vested rights of the
contracting parties.

(e) All obligations under this Agreement shall terminate, except to the extent determined that
continuation of the Agreement is necessary for the continued operation of the institution: (i) by
the Director of the Office of Thrift Supervision (OTS), or his designee, at the time the Federal
Deposit Insurance Corporation (FDIC) enters into an agreement to provide assistance to or on behalf
of the Bank under the authority contained in Section 13(c) of the Federal Deposit Insurance Act, 12
U.S.C. Section 1823(c), or (ii) by the Director of the OTS (or his designee) at the time the
Director of the OTS (or his designee) approves a supervisory merger to resolve problems related to
the operations of the Bank or when the Bank is determined by the Director of the OTS to be in an
unsafe or unsound condition. Any rights of the Executive that have already vested, however, shall
not be affected by such action.

(f) Any payments made to the Executive pursuant to this Agreement, or otherwise, are subject
to, and conditioned upon, their compliance with 12 U.S.C. Section 1828(k) and FDIC Regulation 12
C.F.R. Part 359, Golden Parachute and Indemnification Payments.

8.11 Source of Payments. All payments provided for under this Agreement shall be
timely paid in cash or check from the general funds of the Bank. The Corporation, however,
unconditionally guarantees payment and provision of all amounts and benefits due under this
Agreement. In the event the Bank does not pay such amounts or provide such benefits, they shall be
paid or provided by the Corporation.

[signature page to follow]

 

13

 

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

	 	 	 	 	 
	 	ATHENS FEDERAL COMMUNITY BANK

 	 
	 	/s/ G. Scott Hannah
 	 
	 	G. Scott Hannah 	 
	 	For the Board of Directors 	 
	 

	 	 	 	 	 
	 	ATHENS BANCSHARES CORPORATION

 	 
	 	/s/ G. Scott Hannah
 	 
	 	G. Scott Hannah 	 
	 	For the Board of Directors 	 
	 
	 	 	 
	 	     /s/ Michael R. Hutsell
 	 
	 	Michael R. Hutsell 	 
	 	 	 
	 

 

14Exhibit 10.5

Exhibit 10.5

ATHENS FEDERAL COMMUNITY BANK

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN AGREEMENT

THIS SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN AGREEMENT (the “Agreement”) is amended and
restated this 1st day of April, 2010, by and between Athens Federal Community Bank, a
savings association located in Athens, Tennessee (the “Bank”), and Jeffrey L. Cunningham (the
“Executive”).

The purpose of this Agreement is to provide specified benefits to the Executive, a member of a
select group of management or highly compensated employees who contribute materially to the
continued growth, development and future business success of the Bank. This Agreement shall be
unfunded for tax purposes and for purposes of Title I of the Employee Retirement Income Security
Act of 1974 (“ERISA”), as amended from time to time.

Article 1

Definitions

Whenever used in this Agreement, the following words and phrases shall have the meanings
specified:

	1.1	 	“Account Value” means the amount shown on Schedule A under the heading Account Value.
The parties expressly acknowledge that the Account Value may be different than the liability
that should be accrued by the Bank, under U.S. Generally Accepted Accounting Principles
(“GAAP”), for the Bank’s obligation to the Executive under this Agreement. The Account Value
on any date other than the end of a Plan Year shall be determined by adding the prorated
increase attributable for the current Plan Year to the Account Value for the previous Plan
Year.

	 
	1.2	 	“Beneficiary” means each designated person or entity, or the estate of the Executive,
entitled to any benefits upon the death of the Executive pursuant to Article 4.

	 
	1.3	 	“Beneficiary Designation Form” means the form established from time to time by the
Plan Administrator that the Executive completes, signs and returns to the Plan Administrator
to designate one or more Beneficiaries.

	 
	1.4	 	“Board” means the Board of Directors of the Bank as from time to time constituted.

	 
	1.5	 	“Change in Control” means a change in the ownership or effective control of the Bank,
or in the ownership of a substantial portion of the assets of the Bank, as such change is
defined in Code Section 409A and regulations thereunder.

	 
	1.6	 	“Code” means the Internal Revenue Code of 1986, as amended, and all regulations and
guidance thereunder, including such regulations and guidance as may be promulgated after the
Effective Date of this Agreement.

	 
	1.7	 	“Disability” means the Executive: (i) is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period of not less
than twelve (12) months; or (ii) is, by reason of any medically determinable physical or
mental impairment which can be expected to result in death or can be expected to last for a
continuous period of not less

 

 

 

	 	 	than twelve (12) months, receiving income replacement benefits for a period of not less than
three (3) months under an accident and health plan covering employees or directors of the
Bank. Medical determination of Disability may be made by either the Social Security
Administration or by the provider of an accident or health plan covering employees or
director’s of the Bank provided that the definition of “disability” applied under such
insurance program complies with the requirements of the preceding sentence. Upon the request
of the Plan Administrator, the Executive must submit proof to the Plan Administrator of the
Social Security Administration’s or the provider’s determination.

	 
	1.8	 	“Early Involuntary Termination” means that the Executive, prior to his Normal
Retirement Age, has experienced a Separation from Service, following receipt of a written
notification from the Bank that such Separation from Service has occurred for reasons other
than Termination for Cause, Disability, or Early Voluntary Termination.

	 
	1.9	 	“Early Voluntary Termination” means that the Executive, prior to his Normal
Retirement Age, experiences a Separation from Service for reasons other than Termination for
Cause, Disability, death of the Executive or Early Involuntary Termination.

	 
	1.10	 	“Effective Date” means January 1, 2007.

	 
	1.11	 	“Normal Retirement Age” means the Executive attaining age fifty-eight (58).

	 
	1.12	 	“Plan Administrator” means the Board or committee or person that the Board shall
appoint from time to time

	 
	1.13	 	“Plan Year” means each twelve (12) month period commencing on January 1 and ending on
December 31 of each year.

	 
	1.14	 	“Schedule A” means the schedule attached to this Agreement and made a part hereof.
Schedule A shall be updated upon a change in any of the benefits under Articles 2 or 3.

	 
	1.15	 	“Separation from Service” means the termination of the Executive’s employment with
the Bank. Whether a Separation from Service takes place is determined in accordance with the
requirements of Code Section 409A based on the facts and circumstances surrounding the
termination of the Executive’s employment and whether the Bank and the Executive intended for
the Executive to provide significant services for the Bank following such termination. A
Separation from Service will not have occurred if:

	 	(a)	 	the Executive continues to provide services as an employee of the Bank at an
annual rate that is twenty percent (20%) or more of the services rendered, on average,
during the immediately preceding three (3) full calendar years of employment (or, if
employed less than three (3) years, such lesser period) and the annual remuneration for
such services is twenty percent (20%) or more of the average annual remuneration earned
during the final three (3) full calendar years of employment (or, if less, such lesser
period), or

	 
	 	(b)	 	the Executive continues to provide services to the Bank in a capacity other
than as an employee of the Bank at an annual rate that is fifty percent (50%) or more
of the services rendered, on average, during the immediately preceding three (3) full
calendar years of employment (or if employed less than three (3) years, such lesser
period) and the annual remuneration for such services is fifty percent (50%) or more of
the average annual
remuneration earned during the final three (3) full calendar years of employment (or
if less, such lesser period).

 

2

 

	 	 	The Executive’s employment relationship will be treated as continuing intact while the
Executive is on military leave, sick leave or other bona fide leave of absence if the period
of such leave of absence does not exceed six (6) months, or, if longer, so long as the
Executive’s right to reemployment with the Bank is provided either by statute or by
contract. If the period of leave exceeds six (6) months and there is no right to
reemployment, a Separation from Service will be deemed to have occurred as of the first date
immediately following such six (6) month period.

	 
	1.16	 	“Specified Employee” means a key employee (as defined in Section 416(i) of the Code
without regard to paragraph 5 thereof) of the Bank if any stock of the Bank is publicly traded
on an established securities market or otherwise, as determined by the Plan Administrator
based on the twelve (12) month period ending each December 31 (the “identification period”).
If the Executive is determined to be a Specified Employee for an identification period, the
Executive shall be treated as a Specified Employee for purposes of this Agreement during the
twelve (12) month period that begins on the first day of the fourth month following the close
of the identification period.

	 
	1.17	 	“Termination for Cause” means Separation from Service by action of the Board of
Directors or a banking regulatory agency resulting from the Executive’s:

	 	(a)	 	Gross negligence or gross neglect of duties to the Bank; or

	 
	 	(b)	 	Conviction of a felony or of a gross misdemeanor involving moral turpitude in
connection with the Executive’s employment with the Bank; or

	 
	 	(c)	 	Fraud, disloyalty, dishonesty or willful violation of any law or significant
Bank policy committed in connection with the Executive’s employment and resulting in a
material adverse effect on the Bank.

Article 2

Distributions During Lifetime

	2.1	 	Normal Retirement Benefit, Upon the Executive’s Separation from Service on or after
attaining his Normal Retirement Age for any reason other than death or a Termination for
Cause, the Bank shall distribute to the Executive the benefit described in this Section 2.1 in
lieu of any other benefit under this Agreement.

	 	2.1.1	 	Amount of Benefit. The annual benefit under this Section 2.1 is One
Hundred Sixty Thousand Dollars ($160,000).

	 
	 	2.1.2	 	Distribution of Benefit. The Bank shall distribute the annual benefit
to the Executive in twelve (12) equal monthly installments commencing on the first
business day of the month following the Executive’s Separation from Service. The annual
benefit shall be distributed to the Executive for twenty (20) years.

	2.2	 	Early Voluntary Termination Benefit. If Early Voluntary Termination occurs, the Bank
shall distribute to the Executive the benefit described in this Section 2.2 in lieu of any
other benefit under this Agreement.

 

3

 

	 	2.2.1	 	Amount of Benefit. The benefit under this Section 2.2 is the vested
Account Value determined as of the end of the Plan Year preceding Separation from
Service.

	 
	 	 	 	For the purpose of this provision, the Executive shall be vested in the Account
Value as follows:

	 	 	 	 	 
	As of Date	 	Vested Percentage	 
	December 31, 2008
	 	 	28.57	%
	December 31, 2009
	 	 	37.50	%
	December 31, 2010
	 	 	46.43	%
	December 31, 2011
	 	 	55.36	%
	December 31, 2012
	 	 	64.29	%
	December 31, 2013
	 	 	73.22	%
	December 31, 2014
	 	 	82.15	%
	December 31, 2015
	 	 	91.08	%
	December 31, 2016
	 	 	100.00	%

	 	2.2.2	 	Distribution of Benefit. The Bank shall distribute the annual benefit
to the Executive in twelve (12) equal monthly installments commencing on the first
business day of the month following Normal Retirement Age. The annual benefit shall be
distributed to the Executive for twenty (20) years.

	2.3	 	Early Involuntary Termination Benefit. If an Early Involuntary Termination occurs,
the Bank shall distribute to the Executive the benefit described in this Section 2.3 in lieu
of any other benefit under this Agreement.

	 	2.3.1	 	Amount of Benefit. The benefit under this Section 2.3 is one hundred
percent (100%) of the Account Value determined as of the end of the Plan Year preceding
Separation from Service.

	 
	 	2.3.2	 	Distribution of Benefit. The Bank shall distribute the annual benefit
to the Executive in twelve (12) equal monthly installments commencing on the first
business day of the month following Normal Retirement Age. The annual benefit shall be
distributed to the Executive for twenty (20) years.

	2.4	 	Disability Benefit. If the Executive experiences a Disability which results in a
Separation from Service prior to Normal Retirement Age, the Bank shall distribute to the
Executive the benefit described in this Section 2.4 in lieu of any other benefit under this
Article.

	 	2.4.1	 	Amount of Benefit. The benefit under this Section 2.4 is one hundred
percent (100%) of the Account Value determined as of the end of the Plan Year preceding
Separation from Service.

	 
	 	2.4.2	 	Distribution of Benefit. The Bank shall distribute the annual benefit
to the Executive in twelve (12) equal monthly installments commencing on the first
business day of the month following the date of Separation of Service resulting from
such Disability determination. The annual benefit shall be distributed to the Executive
for twenty (20) years.

 

4

 

	2.5	 	Change in Control Benefit. Notwithstanding anything herein to the contrary, if a
Change in Control occurs followed by a Separation from Service for any reason other than a
Termination for Cause, the Bank shall distribute to the Executive the benefit described in
this Section 2.5 in lieu of any other benefit under this Agreement.

	 	2.5.1	 	Amount of Benefit. The benefit under this Section 2.5 is one hundred
percent (100%) of the Normal Retirement Benefit amount described in Section 2.1.1.

	 
	 	2.5.2	 	Distribution of Benefit. The Bank shall distribute the annual benefit
to the Executive in twelve (12) equal monthly installments commencing on the first
business day of the month following Normal Retirement Age. The annual benefit shall be
distributed to the Executive for twenty (20) years.

	2.6	 	Restriction on Timing of Distribution. Notwithstanding any provision of this
Agreement to the contrary, if the Executive is considered a Specified Employee at Separation
from Service, the provisions of this Section 2.6 shall govern all distributions hereunder.
Benefit distributions that are made due to a Separation from Service occurring while the
Executive is a Specified Employee shall not be made during the first six (6) months following
Separation from Service. Rather, any distribution which would otherwise be paid to the
Executive during such period shall be accumulated and paid to the Executive in a lump sum on
the first business day of the seventh month following the Separation from Service. All
subsequent distributions shall be paid in the manner specified. Notwithstanding the forgoing,
no such delay or continued delay in payments shall be required following the death of the
Executive.

	 
	2.7	 	Distributions Upon Income Inclusion Under Code Section 409A. If any amount is
required to be included in income by the Executive prior to receipt due to a failure of this
Agreement to meet the requirements of Code Section 409A, the Executive may petition the Plan
Administrator for a distribution of that portion of the amount the Bank has accrued with
respect to the Bank’s obligations hereunder that is required to be included in the Executive’s
income. Upon the grant of such a petition, which grant shall not be unreasonably withheld, the
Bank shall distribute to the Executive immediately available funds in an amount equal to the
portion of the amount the Bank has accrued with respect to the Bank’s obligations hereunder
required to be included in income as a result of the failure of this Agreement to meet the
requirements of Code Section 409A, within ninety (90) days of the date when the Executive’s
petition is granted. Such a distribution shall affect and reduce the Executive’s benefits to
be paid under this Agreement.

	 
	2.8	 	Change in Form or Timing of Distributions. For distribution of benefits under this
Article 2, the Executive and the Bank may, subject to the terms of Section 8.1, amend the
Agreement to delay the timing or change the form of distributions. Any such amendment:

	 	(a)	 	may not accelerate the time or schedule of any distribution, except as provided
in Code Section 409A and the regulations thereunder;

	 
	 	(b)	 	must be made at least twelve (12) months prior to the first scheduled
distribution;

	 
	 	(c)	 	must delay the commencement of distributions for a minimum of five (5) years
from the date the first distribution was originally scheduled to be made; and

	 
	 	(d)	 	must take effect not less than twelve (12) months after the amendment is made.

 

5

 

Article 3

Distribution at Death

	3.1	 	Death During Active Service. If the Executive dies prior to Separation from Service,
the Bank shall distribute to the Beneficiary the benefit described in this Section 3.1 This
benefit shall be distributed in lieu of any benefits under Article 2.

	 	3.1.1	 	Amount of Benefit. The benefit under this Section 3.1 is the Normal
Retirement Benefit amount described in Section 2.1.1.

	 
	 	3.1.2	 	Distribution of Benefit. The Bank shall distribute the annual benefit
to the Beneficiary in twelve (12) equal monthly installments for twenty (20) years
commencing the last day of the month following receipt by the Bank of the Executive’s
death certificate.

	3.2	 	Death During Distribution of a Benefit. If the Executive dies after any benefit
distributions have commenced under this Agreement but before receiving all such distributions,
the Bank shall distribute to the Beneficiary the remaining benefits at the same time and in
the same amounts they would have been distributed to the Executive had the Executive survived.

	 
	3.3	 	Death After Separation from Service But Before Benefit Distributions Commence. If
the Executive is entitled to benefit distributions under this Agreement but dies prior to the
commencement of said benefit distributions, the Bank shall distribute to the Beneficiary the
same benefits to which the Executive was entitled prior to death, except that the benefit
distributions shall commence within thirty (30) days following receipt by the Bank of the
Executive’s death certificate.

Article 4

Beneficiaries

	4.1	 	In General. The Executive shall have the right, at any time, to designate a
Beneficiary to receive any benefit distributions under this Agreement upon the death of the
Executive. The Beneficiary designated under this Agreement may be the same as or different
from the beneficiary designation under any other plan of the Bank in which the Executive
participates.

	 
	4.2	 	Designation. The Executive shall designate a Beneficiary by completing and signing
the Beneficiary Designation Form and delivering it to the Plan Administrator or its designated
agent. If the Executive names someone other than the Executive’s spouse as a Beneficiary, the
Plan Administrator may, in its sole discretion, determine that spousal consent is required to
be provided in a form designated by the Plan Administrator, executed by the Executive’s spouse
and returned to the Plan Administrator. The Executive’s beneficiary designation shall be
deemed automatically revoked if the Beneficiary predeceases the Executive or if the Executive
names a spouse as Beneficiary and the marriage is subsequently dissolved. The Executive shall
have the right to change a Beneficiary by completing, signing and otherwise complying with the
terms of the Beneficiary Designation Form and the Plan Administrator’s rules and procedures.
Upon the acceptance by the Plan Administrator of a new Beneficiary Designation Form, all
Beneficiary designations previously filed shall be cancelled. The Plan Administrator shall be
entitled to rely on the last Beneficiary Designation Form filed by the Executive and accepted
by the Plan Administrator prior to the Executive’s death.

	 
	4.3	 	Acknowledgment. No designation or change in designation of a Beneficiary shall be
effective until received, accepted and acknowledged in writing by the Plan Administrator or
its designated agent.

 

6

 

	4.4	 	No Beneficiary Designation. If the Executive dies without a valid beneficiary
designation, or if all designated Beneficiaries predecease the Executive, then the Executive’s
spouse shall be the designated Beneficiary. If the Executive has no surviving spouse, any
benefits shall be paid to the Executive’s estate.

	 
	4.5	 	Facility of Distribution. If the Plan Administrator determines in its discretion
that a benefit is to be distributed to a minor, to a person declared incompetent, or to a
person incapable of handling the disposition of that person’s property, the Plan Administrator
may direct distribution of such benefit to the guardian, legal representative or person having
the care or custody of such minor, incompetent person or incapable person. The Plan
Administrator may require proof of incompetence, minority or guardianship as it may deem
appropriate prior to distribution of the benefit. Any distribution of a benefit shall be a
distribution for the account of the Executive and the Beneficiary, as the case may be, and
shall be completely discharge liability under the Agreement equal to such distribution amount.

Article 5

General Limitations

	5.1	 	Termination for Cause. Notwithstanding any provision of this Agreement to the
contrary, the Bank shall not distribute any benefit under this Agreement if the Executive’s
employment with the Bank is terminated due to a Termination for Cause.

	 
	5.2	 	Suicide or Misstatement. No benefit shall be distributed if the Executive commits
suicide within two years after the Effective Date of this Agreement, or if an insurance
company which issued a life insurance policy covering the Executive and owned by the Bank
denies coverage for material misstatements of fact made by the Executive on an application for
such life insurance.

	 
	5.3	 	Regulatory Exclusions. Notwithstanding any provision of this Agreement to the
contrary:

	 	(a)	 	If the Executive is suspended and/or temporarily prohibited from participating
in the conduct of the Bank’s affairs by a notice served under Section 8(e)(3) or (g)(1)
of the Federal Deposit Insurance Act, as amended (“FDIA”) (12 U.S.C 1818(e)(3) and
(g)(1)), the Bank’s obligations under the Agreement shall be suspended as of the date
of service, unless stayed by appropriate proceedings. If the charges in the notice are
dismissed, the Bank may at its discretion (i) pay the Executive all or part of the
compensation withheld while its contract obligations were suspended and (ii) reinstate
(in whole or in part) any of its obligations which were suspended.

	 
	 	(b)	 	If the Executive is removed and/or permanently prohibited from participating in
the conduct of the Banks affairs by an order issued under Sections 8(e)(4) or 8(g)(1)
of FDIA (12 U.S C. 1818(e)(4) and (g)(1)), all obligations of the Bank under this
Agreement shall terminate, as of the effective date of the order, but the vested rights
of the contracting parties shall not be affected.

	 
	 	(c)	 	If the Bank is in default (as defined in Section 3(x)(1) of the FDIA) all
obligations under this Agreement shall terminate as of the date of default, but this
paragraph shall not affect any vested rights of the contracting patties.

	 
	 	(d)	 	All obligations under this Agreement shall be terminated, except to the extent
determined that continuation of this Agreement is necessary for the continued operation
of the Bank: (i) by the Director of the Office of Thrift Supervision (“Director of
OTS”), or his or her designee, at the time that the Federal Deposit Insurance
Corporation (“FDIC”) enters into

 

7

 

	 	 	 	an agreement to provide assistance to or on behalf of the Bank under the authority
contained in Section 13(c) of the FDIA, or (ii) by the Director of the OTS, or his
or her designee, at the time that the Director of the OTS, or his or her designee
approves a supervisory merger to resolve problems related to operation of the Bank
or when the Bank is determined by the Director of the OTS to be in an unsafe or
unsound condition. Any rights of the parties that have already vested, however,
shall not be affected by such action.

	 
	 	5.3.2	 	Notwithstanding anything herein to the contrary, any payments made to the
Executive pursuant to the Agreement, or otherwise, shall be subject to and conditioned
upon compliance with 12 USC 1828(k) and FDIC Regulation 12 CFR Part 359, Golden
Parachute Indemnification Payments and any regulations promulgated thereunder.

Article 6

Administration of Agreement

	6.1	 	Plan Administrator Duties. The Plan Administrator shall administer this Agreement
according to its express terms and shall also have the discretion and authority to (i) make,
amend, interpret and enforce all appropriate rules and regulations for the administration of
this Agreement and (ii) decide or resolve any and all questions, including interpretations of
this Agreement, as may arise in connection with the Agreement to the extent the exercise of
such discretion and authority does not conflict with Code Section 409A.

	 
	6.2	 	Agents. In the administration of this Agreement, the Plan Administrator may employ
agents and delegate to them such administrative duties as it sees fit, including acting
through a duly appointed representative, and may, from time to time, consult with counsel, who
may be counsel to the Bank.

	 
	6.3	 	Binding Effect of Decisions. Any decision or action of the Plan Administrator with
respect to any question arising out of or in connection with the administration,
interpretation and application of the Agreement and the rules and regulations promulgated
hereunder shall be final and conclusive and binding upon all persons having any interest in
the Agreement.

	 
	6.4	 	Indemnity of Plan Administrator. The Bank shall indemnify and hold harmless the
members of the Plan Administrator against any and all claims, losses, damages, expenses or
liabilities arising from any action or failure to act with respect to this Agreement, except
in the case of willful misconduct by the Plan Administrator or any of its members.

	 
	6.5	 	Bank Information. To enable the Plan Administrator to perform its functions, the Bank
shall supply full and timely information to the Plan Administrator on all matters relating to
the date and circumstances of the death, Disability or Separation from Service of the
Executive and such other pertinent information as the Plan Administrator may reasonably
require.

	 
	6.6	 	Annual Statement. The Plan Administrator shall provide to the Executive, within one
hundred twenty (120) days after the end of each Plan Year, a statement setting forth the
benefits to be distributed under this Agreement.

 

8

 

Article 7

Claims And Review Procedures

	7.1	 	Claims Procedure. An Executive or Beneficiary (“claimant”) who has not received
benefits under the Agreement that he or she believes should be distributed shall make a claim
for such benefits as follows:

	 	7.1.1	 	Initiation — Written Claim. The claimant initiates a claim by
submitting to the Plan Administrator a written claim for the benefits. If such a claim
relates to the contents of a notice received by the claimant, the claim must be made
within sixty (60) days after such notice was received by the claimant. All other claims
must be made within one hundred eighty (180) days of the date on which the event that
caused the claim to arise occurred. The claim must state with particularity the
determination desired by the claimant.

	 
	 	7.1.2	 	Timing of Plan Administrator Response. The Plan Administrator shall
respond to such claimant within ninety (90) days after receiving the claim. If the Plan
Administrator determines that special circumstances require additional time for
processing the claim, the Plan Administrator can extend the response period by an
additional ninety (90) days by notifying the claimant in writing, prior to the end of
the initial ninety (90) day period that an additional period is required. The notice of
extension must set forth the special circumstances and the date by which the Plan
Administrator expects to render its decision.

	 
	 	7.1.3	 	Notice of Decision. If the Plan Administrator denies part or the
entire claim, the Plan Administrator shall notify the claimant in writing of such
denial. The Plan Administrator shall write the notification in a manner calculated to
be understood by the claimant. The notification shall set forth:

	 	(a)	 	The specific reasons for the denial;

	 
	 	(b)	 	A reference to the specific provisions of the Agreement on
which the denial is based;

	 
	 	(c)	 	A description of any additional information or material
necessary for the claimant to perfect the claim and an explanation of why it is
needed;

	 
	 	(d)	 	An explanation of the Agreement’s review procedures and the
time limits applicable to such procedures; and

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

	7.2	 	Review Procedure. If the Plan Administrator denies part or all of the claim, the
claimant shall have the opportunity for a full and fair review by the Plan Administrator of
the denial as follows:

	 	7.2.1	 	Initiation — Written Request. To initiate the review, the claimant,
within sixty (60) days after receiving the Plan Administrator’s notice of denial, must
file with the Plan Administrator a written request for review.

	 
	 	7.2.2	 	Additional Submissions — Information Access. The claimant shall then
have the opportunity to submit written comments, documents, records and other
information relating to the claim. The Plan Administrator shall also provide the
claimant, upon request and free of charge, reasonable access to, and copies of, all
documents, records and other information relevant (as defined in applicable ERISA
regulations) to the claimant’s claim for benefits.

 

9

 

	 	7.2.3	 	Considerations on Review. In considering the review, the Plan
Administrator shall take into account all materials and information the claimant
submits relating to the claim, without regard to whether such information was submitted
or considered in the initial benefit determination.

	 
	 	7.2.4	 	Timing of Plan Administrator Response. The Plan Administrator shall
respond in writing to such claimant within sixty (60) days after receiving the request
for review. If the Plan Administrator determines that special circumstances require
additional time for processing the claim, the Plan Administrator can extend the
response period by an additional sixty (60) days by notifying the claimant in writing,
prior to the end of the initial sixty (60) day period that an additional period is
required. The notice of extension must set forth the special circumstances and the date
by which the Plan Administrator expects to render its decision.

	 
	 	7.2.5	 	Notice of Decision. The Plan Administrator shall notify the claimant
in writing of its decision on review. The Plan Administrator shall write the
notification in a manner calculated to be understood by the claimant. The notification
shall set forth:

	 	(a)	 	The specific reasons for the denial;

	 
	 	(b)	 	A reference to the specific provisions of the Agreement on
which the denial is based;

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

	 
	 	(d)	 	A statement of the claimant’s right to bring a civil action
under ERISA Section 502(a).

Article 8

Amendments and Termination

	8.1	 	Amendments. This Agreement may be amended only by a written agreement signed by the
Bank and the Executive. However, the Bank may unilaterally amend this Agreement to conform
with written directives to the Bank from its banking regulators or to comply with legislative
or tax law provisions or changes thereto, including without limitation Code Section 409A and
any and all regulations and guidance promulgated thereunder.

	 
	8.2	 	Plan Termination Generally. Except as otherwise provided herein, this Agreement may
be terminated only by a written agreement signed by the Bank and the Executive. Upon such
termination of the Agreement in accordance with this Section 8.2, the benefit shall be 100% of
the Account Value determined as of the date the Agreement is terminated. Except as provided in
Section 8.3, the termination of this Agreement shall not cause a distribution of benefits
under this Agreement. Rather, upon such termination, benefit distributions will be made at the
earliest distribution event permitted under Article 2 or Article 3.

 

10

 

	8.3	 	Plan Terminations Under Code Section 409A. Notwithstanding anything to the contrary
in Section 8.2, the Bank may, in its sole discretion, terminate this Agreement by unilateral
action;
provided that, if the Bank terminates this Agreement in accordance with Section 8.3, it
shall do so in conformity with one of the following circumstances:

	 	(a)	 	Upon the Bank’s dissolution or with the approval of a bankruptcy court,
provided that all distributions are made no later than the end of the tax year in which
the Executive is required to include any portion of the amounts deferred under the
Agreement in his gross income; or

	 
	 	(b)	 	Upon the Bank’s termination of this and all other non-account balance plans (as
referenced in Code Section 409A or the regulations thereunder), provided that all
distributions are made no later than the end of the tax year in which the Executive, is
required to include any portion of the amounts deferred under the Agreement in his
gross income, and that the Bank does not adopt any new non-account balance plans for a
minimum of five (5) years following the date of such termination;

In which case, the Bank may distribute the Account Value, determined as of the date of the
termination of the Agreement, to the Executive in a lump sum subject to the above terms.

Article 9

Miscellaneous

	9.1	 	Binding Effect. This Agreement shall bind the Executive and the Bank, and their
beneficiaries, survivors, executors, administrators and transferees.

	 
	9.2	 	No Guarantee of Employment. This Agreement is not a contract for employment. It does
not give the Executive the right to remain as an employee of the Bank, nor interfere with the
Bank’s right to discharge the Executive. It does not require the Executive to remain an
employee nor interfere with the Executive’s right to terminate employment at any time.

	 
	9.3	 	Non-Transferability. Benefits under this Agreement cannot be sold, transferred,
assigned, pledged, attached or encumbered in any manner.

	 
	9.4	 	Tax Withholding and Reporting. The Bank shall withhold any taxes that are required to
be withheld, including but not limited to taxes owed under Code Section 409A from the benefits
provided under this Agreement. The Executive acknowledges that the Bank’s sole liability
regarding taxes is to forward any amounts withheld to the appropriate taxing authorities. The
Bank shall satisfy all applicable reporting requirements, including those under Code Section
409A.

	 
	9.5	 	Applicable Law. The Agreement and all rights hereunder shall be governed by the laws
of the State of Tennessee, except to the extent preempted by the laws of the United States of
America.

	 
	9.6	 	Unfunded Arrangement. The Executive and the Beneficiary are general unsecured
creditors of the Bank for the distribution of benefits under this Agreement. The benefits
represent the mere promise by the Bank to distribute such benefits. The rights to benefits are
not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, attachment or garnishment by creditors. Any insurance on the Executive’s life or
other informal funding asset is a general asset of the Bank to which the Executive and
Beneficiary have no preferred or secured claim.

 

11

 

	9.7	 	Reorganization. The Bank shall not merge or consolidate into or with another bank, or
reorganize, or sell substantially all of its assets to another bank, firm or person unless
such succeeding or continuing bank, firm or person agrees to assume and discharge the
obligations of the Bank under this Agreement. Upon the occurrence of such an event, the term
“Bank” as used in this Agreement shall be deemed to refer to the successor or.
survivor entity.

	 
	9.8	 	Entire Agreement. This Agreement constitutes the entire agreement between the Bank
and the Executive as to the subject matter hereof. No rights are granted to the Executive by
virtue of this Agreement other than those specifically set forth herein.

	 
	9.9	 	Interpretation. Wherever the fulfillment of the intent and purpose of this Agreement
requires and the context will permit, the use of the masculine gender includes the feminine
and use of the singular includes the plural.

	 
	9.10	 	Alternative Action. In the event it shall become impossible for the Bank or the Plan
Administrator to perform any act required by this Agreement due to regulatory or other
constraints, the Bank or Plan Administrator may perform such alternative act as most nearly
carries out the intent and purpose of this Agreement and is in the best interests of the Bank,
provided that such alternative acts do not violate Code Section 409A.

	 
	9.11	 	Headings. Article and section headings are for convenient reference only and shall
not control or affect the meaning or construction of any provision herein.

	 
	9.12	 	Validity. If any provision of this Agreement shall be illegal or invalid for any
reason, said illegality or invalidity shall not affect the remaining parts hereof; but this
Agreement shall be construed and enforced as if such illegal or invalid provision had never
been inserted herein.

	 
	9.13	 	Notice. Any notice or filing required or permitted to be given to the Bank or Plan
Administrator under this Agreement shall be sufficient if in writing and hand-delivered or
sent by registered or certified mail to the address below:

Athens Federal Community Bank

106 West Washington Aveune

Athens, TN 37303-3545

Such notice shall be deemed given as of the date of delivery or, if delivery is made by
mail, as of the date shown on the postmark on the receipt for registration or certification.

Any notice or filing required or permitted to be given to the Executive under this Agreement
shall be sufficient if in writing and hand-delivered or sent by mail to the last known
address of the Executive.

	9.14	 	Deduction Limitation on Benefit Payments. If the Bank reasonably anticipates that the
Bank’s deduction with respect to any distribution under this Agreement would be limited or
eliminated by application of Code Section 162(m), then to the extent deemed necessary by the
Bank to ensure that the entire amount of any distribution from this Agreement is deductible,
the Bank may delay payment of any amount that would otherwise be distributed under this
Agreement. The delayed amounts shall be distributed to the Executive (or the Beneficiary in
the event of the Executive’s death) at the earliest date the Bank reasonably anticipates that
the deduction of the payment of the amount will not be limited or eliminated by application of
Code Section 162(m).

 

12

 

	9.15	 	Compliance with Code Section 409A. This Agreement shall be interpreted and
administered consistent with Code Section 409A; provided, however, the Bank shall be under no
obligation to indemnify the Executive for any tax liabilities incurred by the Executive with
respect to the Agreement, including but not limited to Code Section 409A.

[Signature Page to Follow]

 

13

 

IN WITNESS WHEREOF, the Executive and a duly authorized representative of the Bank have signed this Agreement.

	 	 	 	 	 
	EXECUTIVE

	 	ATHENS FEDERAL COMMUNITY BANK

	 
	 	 	 	 
	/s/ Jeffrey L. Cunningham

	 	By
	 	/s/ Larry D. Wallace
	 

	 	 	 	 
	Jeffrey L. Cunningham

	 	 	 	Larry D. Wallace
	 

	 	 	 	Title Chairman of the Board of
Directors

	 	 	 	 	 
	 	ATHENS FEDERAL COUMMUNITY BANK

 	 
	 	By   	/s/ G. Scott Hannah
 
	 	 	G. Scott Hannah 	 
	 	 	Title:  	Compensation Committee Chairman 	 
	 

 

14

 

Schedule A

	 	 	 	 	 
	ClarkConsulting

	 	 	 	Plan Year Reporting
	 
	 	 	 	 
	 

	 	Salary Continuation Plan	 	 
	 
	 	 	 	 
	 

	 	Hypothetical Termination Benefits Schedule

 

Jeffrey Cunningham

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Early Voluntary	 	 	Early Involuntary	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Pre-retire	 
	Birth Date: 3/20/1958	 	 	Termination  2	 	 	Termination 2	 	 	Disability 2	 	 	Change in Control  2	 	 	Death	 
	Plan Anniversary Date: 1/1/2008	 	 	Annual Benefit 	 	 	Annual Benefit	 	 	Annual Benefit 	 	 	Annual Benefit	 	 	Benefit 2	 
	Normal Retirement: 3/20/2016, Age 58	 	 	Amount Payable at	 	 	Amount Payable at	 	 	Amount Payable at	 	 	Amount Payable at	 	 	Annual 	 
	Normal Retirement Payment: Monthly for 20 years	 	 	Normal Retirement Age	 	 	Normal Retirement Age	 	 	Separation from Service	 	 	Normal Retirement Age	 	 	Benefit	 
	 	 	Discount	 	 	Benefit	 	 	Account	 	 	 	 	 	 	Based On	 	 	 	 	 	 	Based On	 	 	 	 	 	 	Based On	 	 	 	 	 	 	Benefit	 	 	Benefit	 
	Values	 	Rate	 	 	Level	 	 	Value	 	 	Vesting	 	 	Account Value	 	 	Vesting	 	 	Account Value	 	 	Vesting	 	 	Account Value	 	 	Vesting	 	 	Based On	 	 	Based On	 
	as of	 	(1)	 	 	(2)	 	 	(3)	 	 	(4)	 	 	(5)	 	 	(6)	 	 	(7)	 	 	(8)	 	 	(9)	 	 	(10)	 	 	(11)	 	 	(12)	 
	Dec
20081
	 	 	7.00	%	 	 	160,000	 	 	 	356,143	 	 	 	28.57	%	 	 	15,611	 	 	 	100	%	 	 	54,640	 	 	 	100	%	 	 	32,942	 	 	 	100	%	 	 	160,000	 	 	 	160,000	 
	Dec 2009
	 	 	7.00	%	 	 	160,000	 	 	 	506,901	 	 	 	37.50	%	 	 	27,198	 	 	 	100	%	 	 	72,527	 	 	 	100	%	 	 	46,886	 	 	 	100	%	 	 	160,000	 	 	 	160,000	 
	Dec 2010
	 	 	7.00	%	 	 	160,000	 	 	 	668,556	 	 	 	46.43	%	 	 	41,419	 	 	 	100	%	 	 	89,208	 	 	 	100	%	 	 	61,839	 	 	 	100	%	 	 	160,000	 	 	 	160,000	 
	Dec 2011
	 	 	7.00	%	 	 	160,000	 	 	 	841,898	 	 	 	55.36	%	 	 	57,997	 	 	 	100	%	 	 	104,764	 	 	 	100	%	 	 	77,872	 	 	 	100	%	 	 	160,000	 	 	 	160,000	 
	Dec 2012
	 	 	7.00	%	 	 	160,000	 	 	 	1,027,770	 	 	 	64.29	%	 	 	76,679	 	 	 	100	%	 	 	119,271	 	 	 	100	%	 	 	95,065	 	 	 	100	%	 	 	160,000	 	 	 	160,000	 
	Dec 2013
	 	 	7.00	%	 	 	160,000	 	 	 	1,227,080	 	 	 	73.22	%	 	 	97,237	 	 	 	100	%	 	 	132,801	 	 	 	100	%	 	 	113,500	 	 	 	100	%	 	 	160,000	 	 	 	160,000	 
	Dec 2014
	 	 	7.00	%	 	 	160,000	 	 	 	1,440,797	 	 	 	82.15	%	 	 	119,461	 	 	 	100	%	 	 	145,418	 	 	 	100	%	 	 	133,268	 	 	 	100	%	 	 	160,000	 	 	 	160,000	 
	Dec 2015
	 	 	7.00	%	 	 	160,000	 	 	 	1,669,964	 	 	 	91.08	%	 	 	143,164	 	 	 	100	%	 	 	157,184	 	 	 	100	%	 	 	154,465	 	 	 	100	%	 	 	160,000	 	 	 	160,000	 
	Mar 2016
	 	 	7.00	%	 	 	160,000	 	 	 	1,729,799	 	 	 	100.00	%	 	 	160,000	 	 	 	100	%	 	 	160,000	 	 	 	100	%	 	 	160,000	 	 	 	100	%	 	 	160,000	 	 	 	160,000	 

March 20, 2016 Retirement; April 1, 2016 First Payment Date

	 	 	 
	1  	 	The first line reflects 7 months of data, June 2008 to December 2008.

	 
	2  	 	The annual benefit amount will be distributed in 12 equal monthly payments for a total
of 240 monthly payments.

	 
	*	 	The purpose of this hypothetical illustration is to show the participant’s annual
benefit based on various termination assumptions. Actual benefits are based on the terms and
provisions the plan agreement.
Consequently, actual benefits may differ from those shown on this Hypothetical Termination Benefits
Schedule.

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