Document:

EX-10.11

  Exhibit 10.11 

MACON BANK, INC. 
 Salary Continuation Agreement 

Prepared 08-06-07 
 © 2007 Clark Consulting 
 This document is provided to assist your legal counsel in documenting
your specific arrangement. The laws of the various states may differ considerably, and this specimen is for general information only. It is not a form to be signed, nor is it to be construed as legal advice. Failure to accurately document your
arrangement could result in significant losses, whether from claims of those participating in the arrangement, from the heirs and beneficiaries of participants, or from regulatory agencies such as the Internal Revenue Service, the Department of
Labor, or bank examiners. License is hereby granted to your legal counsel to use these materials in documenting solely your arrangement. 
 In
general, if your bank is subject to SEC regulation, implementation of this or any other executive or director compensation program may trigger rules requiring certain disclosures on Form 8-K within four days of implementing the program. Consult with
your SEC attorney, if applicable, to determine your responsibilities under the disclosure rules. 
 IMPORTANT NOTICE ON CODE
SECTION 409A COMPLIANCE 
 It is critical that you consult with your legal and tax advisors to determine the impact of Internal Revenue Code
Section 409A to your particular situation. On April 10, 2007 the Treasury Department issued final regulations implementing the requirements of Section 409A which apply to nonqualified deferred compensation arrangements. Documentary
compliance with Section 409A is required by December 31, 2007. The regulations will be effective on January 1, 2008. 

 MACON BANK, INC. 

Salary Continuation Agreement 
  

 MACON BANK, INC. 

SALARY CONTINUATION AGREEMENT 

THIS SALARY CONTINUATION AGREEMENT (the “Agreement”) is adopted this 6th day of
November, 2007, by and between MACON BANK, INC., a state-chartered savings bank located in Franklin, North Carolina (the “Company”), and CAROLYN HUSCUSSON (the “Executive”). 

Introduction 
 To
encourage the Executive to remain an employee of the Company, the Company is willing to provide salary continuation benefits to the Executive. The Company will pay the benefits from its general assets. 

Agreement 
 The Company
and the Executive agree as follows: 
 Article 1 

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

	1.1	“Accrual Balance” means the liability that should be accrued by the Company, under Generally Accepted Accounting Principles (“GAAP”), for the Company’s obligation to the Executive under
this Agreement, by applying Accounting Principles Board Opinion Number 12 (“APB 12”) as amended by Statement of Financial Accounting Standards Number 106 (“FAS 106”) and the Discount Rate. Any one of a variety of amortization
methods may be used to determine the Accrual Balance. However, once chosen, the method must be consistently applied. 

  

	1.2	“Affiliate” means any “parent corporation” or “subsidiary corporation” of the Company, as the terms are defined in Section 424(e) and (f), respectively, of the Code.

  

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

 

	1.4	“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. 

  

	1.5	“Board” means the Board of Directors of the Company as from time to time constituted. 

  

 MACON BANK, INC. 

Salary Continuation Agreement 
  

	1.6	“Change of Control” means (i) the execution of an agreement for the sale of all, or a material portion, of the assets of the Company; (ii) the execution of an agreement for a merger,
consolidation, or other transaction of the Company whereby the Company is not the surviving entity; (iii) a change of control of the Company, as defined or determined either by the Company’s primary banking regulator or under regulations
promulgated by it; (iv) the acquisition, directly or indirectly, of the beneficial ownership within the meaning of that term as it is used in Section 13(d) of the 1934 Act, and the rules and regulations promulgated thereunder, of
twenty-five percent (25%) or more of the outstanding voting proxies or securities of the Company by any person, trust, entity, or group; or (v) during any period of two (2) consecutive years, individuals (the “Continuing
Directors”) who at the beginning of such period constitute the Board of the Company or its mutual holding company cease for any reason to constitute at least two-thirds (2/3) thereof, provided that any individual whose election or
nomination for election as a member of the Board was approved by a vote of at least two-thirds (2/3) of the Continuing Directors then in office shall be considered a Continuing Director. This limitation shall not apply to a transaction in which
either the Company merely converts to stock form or up to thirty percent (30%) of any class of securities of the Company are purchased by a tax-qualified employee stock benefit plan of the Company or an Affiliate. The term
“person” refers to an individual or a corporation, partnership, trust, bank, joint venture, pool, syndicate, sole proprietorship, unincorporated organization or any other form of entity not specifically listed herein. 

 

	1.7	“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.

  

	1.8	“Disability” means the Executive’s suffering a sickness, accident or injury which has been determined by the carrier of any individual or group disability insurance policy covering the Executive,
or by the Social Security Administration, to be a disability rendering the Executive totally and permanently disabled. The Executive must submit proof to the Company of the carrier’s or Social Security Administration’s determination upon
the request of the Company. 

  

	1.9	“Discount Rate” means the rate used by the Plan Administrator for determining the Accrual Balance. The initial Discount Rate is seven percent (7%). However, the Plan Administrator, in its discretion,
may adjust the Discount Rate to maintain the rate within reasonable standards according to GAAP and/or applicable bank regulatory guidance. 

  

	1.10	“Early Termination” means the Termination of Employment before Normal Retirement Age for reasons other than death, Involuntary Early Termination, Disability, Termination for Cause or following a Change
of Control. 

  

	1.11	“Effective Date” means March 1, 2007. 

  
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 MACON BANK, INC. 

Salary Continuation Agreement 
  

	1.12	“Involuntary Early Termination” means: 

  

	 	(a)	termination of the Executive’s employment by the Company, other than Termination for Cause; or 

  

	 	(b)	termination of the Executive’s employment by the Executive because, without the Executive’s consent, (i) the Executive’s duties are materially reduced, (ii) the Executive’s base salary is
reduced, (iii) the Executive’s principal place of employment is relocated more than fifty (50) miles from the main office of the Company, or (iv) the Executive’s participation in any employee benefit plan is materially
reduced or adversely affected unless the benefit reductions are part of a Company-wide reduction. 

  

	1.13	“Normal Retirement Age” means the Executive’s age sixty-five (65). 

  

	1.14	“Normal Retirement Date” means the later of Normal Retirement Age or Termination of Employment. 

  

	1.15	“Plan Administrator” means the Board or such committee or person as the Board shall appoint. 

  

	1.16	“Plan Year” means each twelve (12) month period commencing on January 1 and ending on December 31 of each year. The initial Plan Year shall commence on the Effective Date of this
Agreement and end on the following December 31. 

  

	1.17	“Specified Employee” means an employee who at the time of Termination of Employment is a key employee of the Company, if any stock of the Company is publicly traded on an established securities market
or otherwise. For purposes of this Agreement, an employee is a key employee if the employee meets the requirements of Code Section 416(i)(l)(A)(i), (ii), or (iii) (applied in accordance with the regulations thereunder and disregarding
section 416(i)(5)) at any time during the twelve (12) month period ending on December 31 (the “identification period”). If the employee is a key employee during an identification period, the employee is treated as a key employee
for purposes of this Agreement during the twelve (12) month period that begins on the first day of April following the close of the identification period. 

  

	1.18	“Termination for Cause” shall be defined as set forth in Article 5. 

  

	1.19	“Termination of Employment” means termination of the Executive’s employment with the Company for reasons other than death. Whether a Termination of Employment has occurred is determined in
accordance with the requirements of Code Section 409A based on whether the facts and circumstances indicate that the Company and Executive reasonably anticipated that no further services would be performed after a certain date or that the level
of bona fide services the Executive would perform after such date (whether as an employee or as an independent contractor) would permanently decrease to no more than twenty percent (20%) of the average level of bona fide services performed
(whether as an employee or an independent contractor) over the immediately preceding thirty-six (36) month period (or the full period of services to the Company if the Executive has been providing services to the Company less than thirty-six
(36) months). 

  
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 MACON BANK, INC. 

Salary Continuation Agreement 
  

 Article 2 

Distributions During Lifetime 
  

	2.1	Normal Retirement Benefit. Upon Termination of Employment after attaining Normal Retirement Age, the Company shall distribute to the Executive the benefit described in this Section 2.1 in lieu of any other
benefit under this Article. 

  

	 	2.1.1	Amount of Benefit. The annual benefit under this Section 2.1 is Forty-Five Thousand Three Hundred Fifteen Dollars ($45,315). Commencing at the end of the first Plan Year, and each Plan Year thereafter, the
annual benefit shall be increased three percent (3%) from the previous Plan Year to a projected benefit of Sixty Thousand Nine Hundred Dollars ($60,900) at Normal Retirement Age. 

 

	 	2.1.2	Distribution of Benefit. The Company shall distribute the annual benefit to the Executive in twelve (12) equal monthly installments commencing on the first day of the month following the Normal Retirement
Date. The annual benefit shall be distributed to the Executive for eighteen (18) years. 

  

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

  

	 	2.2.1	Amount of Benefit. The benefit under this Section 2.2 is the attained benefit level described in Section 2.1.1, subject to the vesting schedule described herein, for the Plan Year ending immediately
prior to Early Termination. The Executive shall be vested in twenty percent (20%) in the first Plan Year and an additional twenty percent (20%) for each Plan Year thereafter until the Executive becomes one hundred percent
(100%) vested in such attained benefit level. 

  

	 	2.2.2	Distribution of Benefit. The Company shall distribute the benefit to the Executive in twelve (12) equal monthly installments commencing on the first day of the month following Normal Retirement Age. The
annual benefit shall be distributed to the Executive for eighteen (18) years. 

  

	2.3	Disability Benefit. If the Executive experiences a Disability which results in a Termination of Employment prior to Normal Retirement Age, other than following a Change of Control, the Company shall distribute to
the Executive the benefit described in this Section 2.3 in lieu of any other benefit under this Article. 

  

	 	2.3.1	Amount of Benefit. The benefit under this Section 2.3 is one hundred percent (100%) of the Accrual Balance for the Plan Year ending immediately prior to Termination of Employment. This benefit is
determined by calculating a two hundred sixteen-month (216-month) fixed annuity from said Accrual Balance, crediting interest on the unpaid balance at an annual rate of seven percent (7%), compounded monthly. 

  
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 MACON BANK, INC. 

Salary Continuation Agreement 
  

	 	2.3.2	Distribution of Benefit. The Company shall distribute the benefit to the Executive in twelve (12) equal monthly installments commencing on the first day of the month following Normal Retirement Age. The
annual benefit shall be distributed to the Executive for eighteen (18) years. 

  

	2.4	Change of Control Benefit. If a Change of Control occurs followed by Termination of Employment, the Company 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 annual benefit under this Section 2.4 is the Normal Retirement Benefit amount described in Section 2.1.1, calculated as if the Executive had remained employed by the Company until
Normal Retirement Age. 

  

	 	2.4.2	Distribution of Benefit. The Company shall distribute the benefit to the Executive in twelve (12) equal monthly installments commencing on the first day of the month following Normal Retirement Age. The
annual benefit shall be distributed to the Executive for eighteen (18) years. 

  

	2.5	Involuntary Early Termination Benefit. If Involuntary Early Termination occurs, the Company shall distribute to the Executive the benefit described in this Section 2.5 in lieu of any other benefit under this
Article. 

  

	 	2.5.1	Amount of Benefit. The benefit under this Section 2.5 is one hundred percent (100%) of the attained benefit level described in Section 2.1.1 for the Plan Year ending immediately prior to
Termination of Employment. 

  

	 	2.5.2	Distribution of Benefit. The Company shall distribute the benefit to the Executive in twelve (12) equal monthly installments commencing on the first day of the month following Normal Retirement Age. The
annual benefit shall be distributed to the Executive for eighteen (18) years. 

  

	2.6	Restriction on Commencement of Distributions. Notwithstanding any provision of this Agreement to the contrary, if the Executive is considered a Specified Employee at Termination of Employment under such
procedures as established by the Company in accordance with Section 409A of the Code, benefit distributions that are made upon Termination of Employment may not commence earlier than six (6) months after the date of such Termination of
Employment. Therefore, in the event this Section 2.6 is applicable to the Executive, any distribution which would otherwise be paid to the Executive within the first six months following the Termination of Employment shall be accumulated and
paid to the Executive in a lump sum on the first day of the seventh month following the Termination of Employment. All subsequent distributions shall be paid in the manner specified. 

  
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	2.7	Distributions Upon Taxation of Amounts Deferred. If, pursuant to Code Section 409A, the Federal Insurance Contributions Act or other state, local or foreign tax, the Executive becomes subject to tax on the
amounts deferred hereunder, then the Company may make a limited distribution to the Executive in a manner that conforms to the requirements of Code section 409A. Any such distribution will decrease the Executive’s benefits distributable under
this Agreement. 

  

	2.8	Change in Form or Timing of Distributions. For distribution of benefits under this Article 2, the Executive and the Company may, subject to the terms of Section 8.1, amend this 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; 

  

	 	(b)	must, for benefits distributable under Sections 2.2, 2.3, 2.4 and 2.5 be made at least twelve (12) months prior to the first scheduled distribution; 

 

	 	(c)	must, for benefits distributable under Sections 2.1, 2.2, 2.3, 2.4 and 2.5, 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. 

 Article
3 
 Distribution at Death 
  

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

  

	 	3.1.1	Amount of Benefit. The annual benefit under this Section 3.1 is the Normal Retirement Benefit amount described in Section 2.1.1, calculated as if the Executive had remained employed by the Company until
Normal Retirement Age. 

  

	 	3.1.2	Distribution of Benefit. The Company shall distribute the benefit to the Beneficiary in twelve (12) equal monthly installments for eighteen (18) years commencing on the first day of the fourth month
following the Executive’s death. The Beneficiary shall be required to provide to the Company 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 Company 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. 

  
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 MACON BANK, INC. 

Salary Continuation Agreement 
  

	3.3	Death Before Benefit Distributions Commence. If the Executive is entitled to benefit distributions under this Agreement but dies prior to the date that commencement of said benefit distributions are scheduled to
be made under this Agreement, the Company shall distribute to the Beneficiary the same benefits to which the Executive was entitled prior to death, except that the benefit distributions shall commence the first day of the fourth month following the
Executive’s death. 

 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 designated under any other plan of the Company 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.

  

	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 benefit shall be paid to the Executive’s estate. 

  
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 MACON BANK, INC. 

Salary Continuation Agreement 
  

	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 completely discharge any liability under this Agreement for such distribution amount. 

 Article
5 
 General Limitations 
  

	5.1	Termination for Cause. Notwithstanding any provision of this Agreement to the contrary, the Company shall not distribute any benefit under this Agreement if the Company terminates Executive’s employment for
misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, willful violations of any law, rule or regulation (other than traffic violations or similar offenses), or final cease-and-desist orders.

  

	5.2	Suicide or Misstatement. The Company shall not pay any benefit under this Agreement if the Executive commits suicide within three (3) years after the date of this Agreement. In addition, the Company shall
not pay any benefit under this Agreement if the Executive has made any material misstatement of fact on an employment application or resume provided to the Company, or any application for any benefits provided by the Company to the Executive.

  

	5.3	Competition After Termination of Employment. The Company shall not pay any benefit under this Agreement if the Executive, within twelve (12) months following Termination of Employment and without the prior
written consent of the Company, engaged in, becomes interested in, directly or indirectly, as a sole proprietor, as a partner in a partnership, or as a substantial shareholder in a corporation, or becomes associated with, in the capacity of
employee, director, officer, principal, agent, trustee or in any other capacity whatsoever, any enterprise conducted in the trading area (a fifty mile (50-mile) radius of any office location of the Company or its Affiliates at the date of the
Executive’s Termination of Employment) of the business of the Company, which enterprise is, or may be deemed to be, competitive with any business carried on by the Company as of the date of Executive’s Termination of Employment or
retirement. This section shall not apply following a Change of Control. 

  

	5.4	Removal. Notwithstanding any provision of this Agreement to the contrary, the Company shall not distribute any benefit under this Agreement if the Executive is subject to a final removal or prohibition order
issued by an appropriate federal banking agency pursuant to Section 8(e) of the Federal Deposit Insurance Act. Notwithstanding anything herein to the contrary, any payments made to the Executive pursuant to this Agreement, or otherwise, shall
be subject to and conditioned upon compliance with 12 U.S.C. 1828 and FDIC Regulation 12 CFR Part 359, Golden Parachute Indemnification Payments and any other regulations or guidance promulgated thereunder. 

  
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 MACON BANK, INC. 

Salary Continuation Agreement 
  

 Article 6 

Claims and Review Procedures 
  

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

  

	 	6.1.1	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. 

  

	 	6.1.2	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. 

 

	 	6.1.3	Notice of Decision. If the Plan Administrator denies part or all of the 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 this 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 this 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. 

  
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 MACON BANK, INC. 

Salary Continuation Agreement 
  

	6.2	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:

  

	 	6.2.1	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. 

  

	 	6.2.2	Additional Submissions—Information Access. The claimant shall then have the opportunity to submit written comments, documents, records and other information relating to the claim. The 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.

  

	 	6.2.3	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. 

  

	 	6.2.4	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. 

 

	 	6.2.5	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 this 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). 

  
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 MACON BANK, INC. 

Salary Continuation Agreement 
  

 Article 7 

Amendments and Termination 
  

	7.1	Amendments. This Agreement may be amended only by a written agreement signed by the Company and the Executive. However, the Company may unilaterally amend this Agreement to conform with written directives to the
Company from its auditors or banking regulators or to comply with legislative changes or tax law, including without limitation Code Section 409A. 

  

	7.2	Plan Termination Generally. This Agreement may be terminated only by a written agreement signed by the Company and the Executive. The benefit shall be the Accrual Balance as of the date this Agreement is
terminated. Except as provided in Section 7.3, 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. 

  

	7.3	Plan Terminations Under Code Section 409A. Notwithstanding anything to the contrary in Section 7.2, if the Company terminates this Agreement in the following circumstances: 

 

	 	(a)	Within thirty (30) days before or twelve (12) months after a change in the ownership or effective control of the Company, or in the ownership of a substantial portion of the assets of the Company as described
in Code Section 409A(a)(2)(A)(v), provided that all distributions are made no later than twelve (12) months following such termination of this Agreement and further provided that all the Company’s arrangements which are substantially
similar to this Agreement are terminated so the Executive and all participants in the similar arrangements are required to receive all amounts of compensation deferred under the terminated arrangements within twelve (12) months of such
termination; 

  

	 	(b)	Upon the Company’s dissolution or with the approval of a bankruptcy court provided that the amounts deferred under this Agreement are included in the Executive’s gross income in the latest of (i) the
calendar year in which this Agreement terminates; (ii) the calendar year in which the amount is no longer subject to a substantial risk of forfeiture; or (iii) the first calendar year in which the distribution is administratively
practical; or 

  

	 	(c)	Upon the Company’s termination of this and all other arrangements that would be aggregated with this Agreement pursuant to Treasury Regulations Section 1.409A-1(c) if the Executive participated
in such arrangements (“Similar Arrangements”), provided that (i) the termination and liquidation does not occur proximate to a downturn in the financial health of the Company, (ii) all termination distributions are made no
earlier than twelve (12) months and no later than twentyfour (24) months following such termination, and (iii) the Company does not adopt any new arrangement that would be a Similar Arrangement for a minimum of three (3) years
following the date the Company takes all necessary action to irrevocably terminate and liquidate the Agreement; the Company may distribute the Accrual Balance, determined as of the date of the termination of this Agreement, to the Executive in a
lump sum subject to the above terms. 

  
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 MACON BANK, INC. 

Salary Continuation Agreement 
  

 Article 8 

Administration of Agreement 
  

	8.1	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 this Agreement to the extent the exercise
of such discretion and authority does not conflict with Code Section 409A. 

  

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

  

	8.3	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 or application of this Agreement
and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in this Agreement. 

  

	8.4	Indemnity of Plan Administrator. The Company shall indemnify and hold harmless 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. 

  

	8.5	Company Information. To enable the Plan Administrator to perform its functions, the Company shall supply full and timely information to the Plan Administrator on all matters relating to the date and circumstances
of the Executive’s death, Disability or Termination of Employment, and such other pertinent information as the Plan Administrator may reasonably require. 

  

	8.6	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. 

 Article 9 

Miscellaneous 
  

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

  
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 MACON BANK, INC. 

Salary Continuation Agreement 
  

	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 Company nor interfere with the Company’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 Company 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 Company’s sole liability regarding taxes is to forward any amounts withheld to the appropriate taxing authorities. The Company shall satisfy all applicable reporting requirements, including those
under Code Section 409A. 

  

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

 

	9.6	Unfunded Arrangement. The Executive and the Beneficiary are general unsecured creditors of the Company for the distribution of benefits under this Agreement. The benefits represent the mere promise by the Company
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 Company to which the Executive and Beneficiary have no preferred or secured claim. 

  

	9.7	Reorganization. The Company 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 Company under this Agreement. Upon the occurrence of such an event, the term “Company” 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 Company 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. 

  
 12 

 MACON BANK, INC. 

Salary Continuation Agreement 
  

	9.10	Alternative Action. In the event it shall become impossible for the Company or the Plan Administrator to perform any act required by this Agreement due to regulatory or other constraints, the Company 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 Company, provided that such alternative act does 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 included herein. 

  

	9.13	Notice. Any notice or filing required or permitted to be given to the Company 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: 

  

					
		  	 	  	
		  	 	  	
		  	 	  	

 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	Compliance with Section 409A. This Agreement shall be interpreted and administered consistent with Code Section 409A. 

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

 

							
	EXECUTIVE	 		 	MACON BANK, INC.
				
	   
	 		 	By:	 	   

	CAROLYN HUSCUSSON	 		 	Title: PRES & CEO

  
 13 

 MACON BANK, INC. 

Salary Continuation Agreement 
 Beneficiary Designation Form 

 

 {    } New Designation 

{    } Change in Designation 
 I, CAROLYN
HUSCUSSON, designate the following as Beneficiary under this Agreement: 
  

							
	Primary:	  	  
	    	            %	 	
	  
	    	            %	 	
				
	Contingent:	  	  
	    	            %	 	
	  
	    	            %	 	

  Notes: 
  

	 	•	 	Please PRINT CLEARLY or TYPE the names of the beneficiaries. 

  

	 	•	 	To name a trust as Beneficiary, please provide the name of the trustee(s) and the exact name and date of the trust agreement. 

 

	 	•	 	To name your estate as Beneficiary, please write “Estate of [your name]”. 

  

	 	•	 	Be aware that none of the contingent beneficiaries will receive anything unless ALL of the primary beneficiaries predecease you. 

I understand that I may change these beneficiary designations by delivering a new written designation to the Plan Administrator, which shall be effective only
upon receipt and acknowledgment by the Plan Administrator prior to my death. I further understand that the designations will be automatically revoked if the Beneficiary predeceases me, or, if I have named my spouse as Beneficiary and our marriage is
subsequently dissolved. 
  

									
	Name: CAROLYN HUSCUSSON	 		 	
					
	Signature: 	 	 	 		 	Date:	 	 
		 		 		 		 	

  Received by the Plan Administrator this          day of
                    , 200     

 

			
	
		
	By:	 	 
	Title:EX-10.12

  Exhibit 10.12 

MACON BANK, INC. 
 SALARY
CONTINUATION AGREEMENT 
  THIS AGREEMENT is adopted this 23rd day of June,
2003, by and between MACON BANK, INC., a state-chartered savings bank located in Franklin, North Carolina (the “Company”), and Roger D. Plemens (the “Executive”). 

INTRODUCTION 
 To
encourage the Executive to remain an employee of the Company, the Company is willing to provide salary continuation benefits to the Executive. The Company will pay the benefits from its general assets. 

AGREEMENT 
 The Company
and the Executive agree as follows: 
 Article 1 

Definitions 
 Whenever used
in this Agreement, the following words and phrases shall have the meanings specified: 
 1.1 “Affiliate” means any
“parent corporation” or “subsidiary corporation” of the Company, as the terms are defined in Section 424(e) and (f), respectively, of the Code. 

1.2 “Change of Control” means (i) the execution of an agreement for the sale of all, or a material portion, of the
assets of the Company; (ii) the execution of an agreement for a merger, consolidation, or other transaction of the Company whereby the Company is not the surviving entity; (iii) a change of control of the Company, as defined or determined
either by the Company’s primary banking regulator or under regulations promulgated by it; (iv) the acquisition, directly or indirectly, of the beneficial ownership within the meaning of that term as it is used in Section 13(d) of the
1934 Act, and the rules and regulations promulgated thereunder, of twenty-five percent (25%) or more of the outstanding voting proxies or securities of the Company by any person, trust, entity, or group; or (v) during any period of two
consecutive years, individuals (the “Continuing Directors”) who at the beginning of such period constitute the 

  
 1 

 
Board of Directors of the Company or its mutual holding company (the “Existing Board”) cease for any reason to constitute at least two-thirds thereof, provided that any individual whose
election or nomination for election as a member of the Existing Board was approved by a vote of at least two-thirds of the Continuing Directors then in office shall be considered a Continuing Director. This limitation shall not apply to a
transaction in which either the Company merely converts to stock form or up to thirty percent (30%) of any class of securities of the Company are purchased by a tax-qualified employee stock benefit plan of the Company or an
Affiliate. The term “person” refers to an individual or a corporation, partnership, trust, bank, joint venture, pool, syndicate, sole proprietorship, unincorporated organization or any other form of entity not specifically listed herein.

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

1.4 “Disability” means the Executive’s suffering a sickness, accident or injury which has been determined by the carrier
of any individual or group disability insurance policy covering the Executive, or by the Social Security Administration, to be a disability rendering the Executive totally and permanently disabled. The Executive must submit proof to the Company of
the carrier’s or Social Security Administration’s determination upon the request of the Company. 
 1.5 “Early
Termination” means the Termination of Employment before Normal Retirement Age for reasons other than death, Involuntary Early Termination, Disability, Termination for Cause or following a Change of Control. 

1.6 “Early Termination Date” means the month, day and year in which Early Termination occurs. 

1.7 “Effective Date” means January 1, 2003. 

1.8 “Involuntary Early Termination” means: 
  

	 	(a)	termination of the Executive’s employment by the Company, other than Termination for Cause, or 

  

	 	(b)	termination of the Executive’s employment by the Executive which is due to (i) the Executive’s duties are materially reduced, (ii) the Executive’s base salary is reduced, (iii) the
Executive’s employment is relocated more than 50 miles from the main office of the Company, or (iv) the Executive’s participation in any employee benefit plan is materially reduced or adversely affected unless the benefit reductions
are part of a company-wide reduction, and the Executive does not consent to such changes in items i, ii, iii and iv. 

 1.9
“Normal Retirement Age” means the Executive attaining age 65. 
 1.10 “Normal Retirement Date” means the
later of the Normal Retirement Age or Termination of Employment. 

  
 2 

 1.11 “Plan Year” means a twelve-month period commencing on January lst and ending on December 31st of each year. The initial Plan Year shall commence on the Effective Date of this Agreement. 

1.12 “Termination for Cause” shall be defined as set forth in Article 5. 

1.13 “Termination of Employment” means that the Executive ceases to be employed by the Company for any reason, voluntary or
involuntary, other than by reason of a leave of absence approved by the Company. 
 Article 2 

Lifetime Benefits 
 2.1
Normal Retirement Benefit. Upon Termination of Employment on or after the Normal Retirement Age for reasons other than death, the Company shall pay 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
$                 (                 Dollars). Commencing at the end of the
first Plan Year, and each Plan Year thereafter, the annual benefit shall be increased three percent (3.0%) from the previous Plan Year to a projected annual benefit of
$                     (                 Dollars) at
Normal Retirement Age. Any additional increase in the annual benefit shall require the recalculation of Schedule A. 
 2.1.2
Payment of Benefit. The Company shall pay the annual benefit to the Executive in 12 equal monthly installments commencing with the month following the Executive’s Normal Retirement Date, paying the annual benefit to the Executive for a
period of eighteen (18) years. 
 2.2 Early Termination Benefit. Upon Early Termination, the Company shall pay to the Executive
the benefit described in this Section 2.2 in lieu of any other benefit under this Agreement. 
 2.2.1 Amount of
Benefit. The benefit under this Section 2.2 is the annual Early Retirement Installment set forth on Schedule A for the Plan Year ending immediately prior to the Early Termination Date, determined by vesting the Executive in the attained
benefit level described in Section 2.1.1 for the Plan Year ending immediately prior to the Early Termination Date, twenty percent (20%) in the first Plan Year and an additional twenty percent (20%) for each Plan Year thereafter until
the Executive becomes one hundred percent (100%) vested in such attained benefit level. Any increase in the annual benefit beyond that provided under Section 2.1.1 shall require the recalculation of this benefit on Schedule A. 

  
 3 

 2.2.2 Payment of Benefit. The Company shall pay the annual benefit to the
Executive in 12 equal monthly installments commencing with the month following the Normal Retirement Age, paying the annual benefit to the Executive for a period of eighteen (18) years. 

2.3 Disability Benefit. If the Executive terminates employment due to Disability prior to Normal Retirement Age, other than following a
Change of Control, the Company shall pay 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 the annual Disability Installment set forth on
Schedule A for the Plan Year ending immediately prior to Termination of Employment (except during the first Plan Year, the benefit is the amount set forth for Plan Year 1), determined by vesting the Executive in 100 percent of the Accrual Balance
for the Plan Year ending immediately prior to Termination of Employment. Any increase in the annual benefit beyond that provided under Section 2.1.1 would require the recalculation of this Disability benefit on Schedule A. This benefit is
determined by calculating a 216-month fixed annuity from said Accrual Balance, crediting interest on the unpaid balance at an annual rate of seven percent (7.0%), compounded monthly. 

2.3.2 Payment of Benefit. The Company shall pay the annual benefit to the Executive in 12 equal monthly installments
commencing with the month following the Normal Retirement Age, paying the annual benefit to the Executive for a period of eighteen (18) years. 

2.4 Change of Control Benefit. Upon Termination of Employment following a Change of Control, the Company shall pay to the Executive the
benefit described in this Section 2.4 in lieu of any other benefit under this Agreement. 
 2.4.1 Amount of Benefit.
The benefit under this Section 2.4 is the annual Change of Control Installment set forth on Schedule A for the Plan Year ending immediately prior to Termination of Employment (except during the first Plan Year, the benefit is the amount set
forth for Plan Year 1), determined by vesting the Executive in 100% of the attained benefit level described in Section 2.1.1 calculated as if the Executive remained employed by the Company until the Normal Retirement Age. Any increase in the
annual benefit beyond that provided under Section 2.1.1 would require the recalculation of this Change of Control benefit on Schedule A. 

2.4.2 Payment of Benefit. The Company shall pay the annual benefit to the Executive in 12 equal monthly installments
commencing with the month following the Normal Retirement Age, paying the annual benefit to the Executive for a period of eighteen (18) years. 

  
 4 

 2.5 Involuntary Early Termination Benefit. Upon Involuntary Early
Termination, the Company shall pay 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 the annual Early Involuntary Termination Installment
set forth on Schedule A for the Plan Year ending immediately prior to Termination of Employment (except during the first Plan Year, the benefit is the amount set forth for Plan Year 1), determined by vesting the Executive in 100% of the attained
benefit level described in Section 2.1.1 for the Plan Year ending immediately prior to Termination of Employment. Any increase in the annual benefit beyond that provided under Section 2.1.1 would require the recalculation of this
Involuntary Early Termination benefit on Schedule A. 
 2.5.2 Payment of Benefit. The Company shall pay the annual
benefit to the Executive in 12 equal monthly installments commencing with the month following Termination of Employment, paying the annual benefit to the Executive for a period of eighteen (18) years. 

Article 3 
 Death
Benefits 
 3.1 Death During Active Service. If the Executive dies while in the active service of the Company, the Company shall
pay to the Executive’s beneficiary the benefit described in this Section 3.1. This benefit shall be paid in lieu of the benefits under Article 2. 

3.1.1 Amount of Benefit. The annual benefit under this Section 3.1 is the Normal Retirement Benefit amount
described in Section 2.1.1, calculated as if the Executive had remained employed by the Company until Normal Retirement Age. 

3.1.2 Payment of Benefit. The Company shall pay the annual benefit to the Executive’s beneficiary in 12 equal
monthly installments commencing with the month following the Executive’s death, paying the annual benefit to the Executive’s beneficiary for a period of eighteen (18) years. 

3.2 Death During Payment of a Benefit. If the Executive dies after any benefit payments have commenced under Article 2 of this
Agreement but before receiving all such payments, the Company shall pay the remaining benefits to the Executive’s beneficiary at the same time and in the same amounts they would have been paid to the Executive had the Executive survived. 

3.3 Death After Termination of Employment But Before Payment of a Benefit Commences. If the Executive is entitled to a benefit under
Article 2 of this Agreement, but dies prior to the commencement of said benefit payments, the Company shall pay the same benefit payments to the Executive’s beneficiary that the Executive was entitled to prior to death except that the benefit
payments shall commence on the first day of the month following the date of the Executive’s death. 

  
 5 

 Article 4 

Beneficiaries 
 4.1
Beneficiary Designations. The Executive shall designate a beneficiary by filing a written designation with the Company. The Executive may revoke or modify the designation at any time by filing a new designation. However, designations will
only be effective if signed by the Executive and received by the Company during the Executive’s lifetime. 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. If the Executive dies without a valid beneficiary designation, all payments shall be made to the Executive’s estate. 

4.2 Facility of Payment. If a benefit is payable to a minor, to a person declared incompetent, or to a person incapable of handling the
disposition of his or her property, the Company may pay such benefit to the guardian, legal representative or person having the care or custody of such minor, incompetent person or incapable person. The Company may require proof of incompetence,
minority or guardianship as it may deem appropriate prior to distribution of the benefit. Such distribution shall completely discharge the Company from all liability with respect to such benefit. 

Article 5 
 General
Limitations 
 5.1 Termination for Cause. Notwithstanding any provision of this Agreement to the contrary, the Company shall not
pay any benefit under this Agreement if the Company terminates the Executive’s employment for misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, willful violations of any law, rule or
regulation (other than traffic violations or similar offenses), or final cease-and-desist orders. 
 5.2 Suicide or Misstatement. The
Company shall not pay any benefit under this Agreement if the Executive commits suicide within three years after the date of this Agreement. In addition, the Company shall not pay any benefit under this Agreement if the Executive has made any
material misstatement of fact on an employment application or resume provided to the Company, or on any application for any benefits provided by the Company to the Executive. 

5.3 Competition After Termination of Employment. The Company shall not pay any benefit under this Agreement if the Executive, within
twelve (12) months following Termination of Employment and without the prior written consent of the Company, engages in, becomes interested in, directly or indirectly, as a sole proprietor, as a partner in a partnership, or as a substantial
shareholder in a corporation, or becomes associated with, in the capacity of employee, director, officer, principal, agent, trustee or in any other capacity whatsoever, any enterprise conducted in the trading area (a 50 mile radius of any office
location of the Company or its Affiliates at the date of the Executive’s Termination of Employment) of the business of the Company, which enterprise is, or may deemed to be, competitive with any business carried on by the Company as of the date
of termination of the Executive’s employment or retirement. This section shall not apply following a Change of Control. 

  
 6 

 Article 6 

Claims and Review Procedure 

6.1 Claims Procedure. Any individual (“claimant”) who has not received benefits under the Agreement that he or she believes
should be paid shall make a claim for such benefits as follows: 
 6.1.1 Initiation—Written Claim. The claimant
initiates a claim by submitting to the Company a written claim for the benefits. 
 6.1.2 Timing of Company Response.
The Company shall respond to such claimant within 90 days after receiving the claim. If the Company determines that special circumstances require additional time for processing the claim, the Company can extend the response period by an
additional 90 days by notifying the claimant in writing, prior to the end of the initial 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 Company expects
to render its decision. 
 6.1.3 Notice of Decision. If the Company denies part or all of the claim, the Company shall
notify the claimant in writing of such denial. The Company 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 this 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 this 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. 
 6.2 Review Procedure. If the Company denies part or all of the claim, the
claimant shall have the opportunity for a full and fair review by the Company of the denial, as follows: 
 6.2.1
Initiation—Written Request. To initiate the review, the claimant, within 60 days after receiving the Company’s notice of denial, must file with the Company a written request for review. 

  
 7 

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

6.2.3 Considerations on Review. In considering the review, the Company 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. 

6.2.4 Timing of Company Response. The Company shall respond in writing to such claimant within 60 days after receiving
the request for review. If the Company determines that special circumstances require additional time for processing the claim, the Company can extend the response period by an additional 60 days by notifying the claimant in writing, prior to the end
of the initial 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 Company expects to render its decision. 

6.2.5 Notice of Decision. The Company shall notify the claimant in writing of its decision on review. The Company 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 this 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 7 
 Amendments
and Termination 
 This Agreement may not be amended, altered or modified, except by a written instrument signed by the parties hereto
or their respective successors, and may not be otherwise terminated except as provided herein. 

  
 8 

 Article 8 

Miscellaneous 
 8.1
Binding Effect. This Agreement shall bind the Executive and the Company, and their beneficiaries, survivors, executors, successors, administrators and transferees. 

8.2 No Guarantee of Employment. This Agreement is not an employment policy or contract. It does not give the Executive the right to
remain an employee of the Company, nor does it interfere with the Company’s right to discharge the Executive. It also does not require the Executive to remain an employee nor interfere with the Executive’s right to terminate employment at
any time. 
 8.3 Non-Transferability. Benefits under this Agreement cannot be sold, transferred, assigned, pledged, attached or
encumbered in any manner. 
 8.4 Reorganization. The Company shall not merge or consolidate into or with another company, or
reorganize, or sell substantially all of its assets to another company, firm, or person unless such succeeding or continuing company, firm, or person agrees to assume and discharge the obligations of the Company under this Agreement. Upon the
occurrence of such event, the term “Company” as used in this Agreement shall be deemed to refer to the successor or survivor company. 

8.5 Tax Withholding. The Company shall withhold any taxes that are required to be withheld from the benefits provided under this
Agreement. 
 8.6 Applicable Law. The Agreement and all rights hereunder shall be governed by the laws of the State of North
Carolina, except to the extent preempted by the laws of the United States of America. 
 8.7 Unfunded Arrangement. The Executive and
beneficiary are general unsecured creditors of the Company for the payment of benefits under this Agreement. The benefits represent the mere promise by the Company to pay 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 is a general asset of the Company to which the Executive and beneficiary have no preferred
or secured claim. 
 8.8 Entire Agreement. This Agreement constitutes the entire agreement between the Company 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. 

8.9 Administration. The Company shall have powers which are necessary to administer this Agreement, including but not limited to: 

(a) Establishing and revising the method of accounting for the Agreement; 

(b) Maintaining a record of benefit payments; 

(c) Establishing rules and prescribing any forms necessary or desirable to administer the Agreement; and 

(d) Interpreting the provisions of the Agreement. 

  
 9 

 8.10 Named Fiduciary. The Company shall be the named fiduciary and plan administrator
under this Agreement. It may delegate to others certain aspects of the management and operational responsibilities including the employment of advisors and the delegation of ministerial duties to qualified individuals. 

IN WITNESS WHEREOF, the Executive and the Company have signed this Agreement. 

 

									
	EXECUTIVE:	 		 	COMPANY:
			
		 		 	MACON BANK, INC.
				
	  
	 		 	By	 	 
				
	[Name of Executive]	 		 	Title	 	  

  
 10 

 BENEFICIARY DESIGNATION 

MACON BANK, INC. 
 SALARY
CONTINUATION AGREEMENT 
 [Name of Executive] 

I designate the following as beneficiary of any death benefits under this Agreement: 

Primary:                        
                                         
                                         
                                         
                                         
                                         
            
  

                          
                                         
                                         
                                         
                                         
                                         
                           

Relationship and Social Security Number:
                                         
                                         
                                         
                                         
            
 Contingent (if the Primary is deceased):
                                         
                                         
                                         
                                         
                 
  

                          
                                         
                                         
                                         
                                         
                                         
                          

        Relationship and Social Security Number:
                                         
                                         
                                         
                                         
   
 Note: 
  

	•	Include instructions regarding how you want benefits divided if you are naming more than one Primary or Contingent beneficiary and their share is not equal. 

 

	•	To name a trust as beneficiary, please provide the name of the trustee(s) and the exact name and date of the trust agreement and the tax identification number. 

I understand that I may change these beneficiary designations by filing a new written designation with the Company. I further understand that the designations
will be automatically revoked if the beneficiary predeceases me, or, if I have named my spouse as beneficiary and our marriage is subsequently dissolved. 
  

			
	Signature	 	 
		 	[Name of Executive]

			
	Date	 	  

 Received by the Company this              day of
                        , 2003. 
  

			
	By	 	 
		
	Title	 	  

  
 11 

							
	CLARK CONSULTING	  	 Macon Bank, Inc
 Salary Continuation Plan -
Schedule A
	  	 	Plan Year Reporting	  

 Roger Plemens 
  

																																													
	 DOB: 8/14/1955

Plan Anniv Date: 1/1/2004
 Retirement Age:
65
 Payments: Monthly Installments
	 	  	Early Involuntary
Termination	 	  	Early Retirement	 	  	Disability	 	  	Change of Control	 
	  	Installment
Payable Immediately	 	  	Installment
Payable at 65	 	  	Installment
Payable at 65	 	  	Installment
Payable at 65	 
	Period	  	 	 	  	Benefit
Level 2	 	  	Accrual
Balance	 	  	Vesting	 	 	Based On
Benefit	 	  	Vesting	 	 	Based On
Benefit	 	  	Vesting	 	 	Based On
Accrual	 	  	Vesting	 	 	Based On
Benefit	 
	 Ending
	  	Age	 	  	(1)	 	  	(2)	 	  	(3)	 	 	(4)	 	  	(5)	 	 	(6)	 	  	(7)	 	 	(8)	 	  	(9)	 	 	(10)	 
	 Dec 20031
	  	 	48	  	  	 	67,097	  	  	 	20,382	  	  	 	100	% 	 	 	67,097	  	  	 	20	% 	 	 	13,419	  	  	 	100	% 	 	 	6,384	  	  	 	100	% 	 	 	110,901	  
	 Dec 2004
	  	 	49	  	  	 	69,110	  	  	 	42,914	  	  	 	100	% 	 	 	69,110	  	  	 	40	% 	 	 	27,644	  	  	 	100	% 	 	 	12,534	  	  	 	100	% 	 	 	110,901	  
	 Dec 2005
	  	 	50	  	  	 	71,183	  	  	 	67,846	  	  	 	100	% 	 	 	71,183	  	  	 	60	% 	 	 	42,710	  	  	 	100	% 	 	 	18,480	  	  	 	100	% 	 	 	110,901	  
	 Dec 2006
	  	 	51	  	  	 	73,319	  	  	 	95,465	  	  	 	100	% 	 	 	73,319	  	  	 	80	% 	 	 	58,655	  	  	 	100	% 	 	 	24,250	  	  	 	100	% 	 	 	110,901	  
	 Dec 2007
	  	 	52	  	  	 	75,518	  	  	 	126,099	  	  	 	100	% 	 	 	75,518	  	  	 	100	% 	 	 	75,518	  	  	 	100	% 	 	 	29,873	  	  	 	100	% 	 	 	110,901	  
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Dec 2008
	  	 	53	  	  	 	77,784	  	  	 	160,125	  	  	 	100	% 	 	 	77,784	  	  	 	100	% 	 	 	77,784	  	  	 	100	% 	 	 	35,376	  	  	 	100	% 	 	 	110,901	  
	 Dec 2009
	  	 	54	  	  	 	80,117	  	  	 	197,982	  	  	 	100	% 	 	 	80,117	  	  	 	100	% 	 	 	80,117	  	  	 	100	% 	 	 	40,791	  	  	 	100	% 	 	 	110,901	  
	 Dec 2010
	  	 	55	  	  	 	82,521	  	  	 	240,181	  	  	 	100	% 	 	 	82,521	  	  	 	100	% 	 	 	82,521	  	  	 	100	% 	 	 	46,149	  	  	 	100	% 	 	 	110,901	  
	 Dec 2011
	  	 	56	  	  	 	84,996	  	  	 	287,329	  	  	 	100	% 	 	 	84,996	  	  	 	100	% 	 	 	84,996	  	  	 	100	% 	 	 	51,486	  	  	 	100	% 	 	 	110,901	  
	 Dec 2012
	  	 	57	  	  	 	87,546	  	  	 	340,152	  	  	 	100	% 	 	 	87,546	  	  	 	100	% 	 	 	87,546	  	  	 	100	% 	 	 	56,843	  	  	 	100	% 	 	 	110,901	  
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Dec 2013
	  	 	58	  	  	 	90,173	  	  	 	399,536	  	  	 	100	% 	 	 	90,173	  	  	 	100	% 	 	 	90,173	  	  	 	100	% 	 	 	62,265	  	  	 	100	% 	 	 	110,901	  
	 Dec 2014
	  	 	59	  	  	 	92,878	  	  	 	466,585	  	  	 	100	% 	 	 	92,878	  	  	 	100	% 	 	 	92,878	  	  	 	100	% 	 	 	67,812	  	  	 	100	% 	 	 	110,901	  
	 Dec 2015
	  	 	60	  	  	 	95,664	  	  	 	542,723	  	  	 	100	% 	 	 	95,664	  	  	 	100	% 	 	 	95,664	  	  	 	100	% 	 	 	73,560	  	  	 	100	% 	 	 	110,901	  
	 Dec 2016
	  	 	61	  	  	 	98,534	  	  	 	629,872	  	  	 	100	% 	 	 	98,534	  	  	 	100	% 	 	 	98,534	  	  	 	100	% 	 	 	79,617	  	  	 	100	% 	 	 	110,901	  
	 Dec 2017
	  	 	62	  	  	 	101,490	  	  	 	730,808	  	  	 	100	% 	 	 	101,490	  	  	 	100	% 	 	 	101,490	  	  	 	100	% 	 	 	86,147	  	  	 	100	% 	 	 	110,901	  
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Dec 2018
	  	 	63	  	  	 	104,535	  	  	 	850,035	  	  	 	100	% 	 	 	104,535	  	  	 	100	% 	 	 	104,535	  	  	 	100	% 	 	 	93,447	  	  	 	100	% 	 	 	110,901	  
	 Dec 2019
	  	 	64	  	  	 	107,671	  	  	 	996,660	  	  	 	100	% 	 	 	107,671	  	  	 	100	% 	 	 	107,671	  	  	 	100	% 	 	 	102,179	  	  	 	100	% 	 	 	110,901	  
	 Aug 2020
	  	 	65	  	  	 	110,901	  	  	 	1,133,260	  	  	 	100	% 	 	 	110,901	  	  	 	100	% 	 	 	110,901	  	  	 	100	% 	 	 	110,901	  	  	 	100	% 	 	 	110,901	  

 August 14, 2020 Retirement; September
30, 2020 First Payment Date 
  

	1 	The first line reflects 12 months of data, January 2003 to December 2003. 

	2 	The benefit amount is based on a $67,097 beginning benefit, inflating at 3.00% each year to $110,901 at retirement. 

  

			
	 Copyright © 2003 Clark Consulting.

Salary Continuation Plan for Macon Bank, Inc - Franklin, NC
 370011
12039 104018 v5.26.04 05/23/2003:13 SCP-E,F C
	  	 Securities offered through Clark/Bardes Financial Services, Inc.,

member NASD & SIPC, Los Angeles, CA 90071, (213) 486-6300.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00231-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00231-of-00352.parquet"}]]