Document:

EX-10.7

 Exhibit 10.7 
 FIRST NATIONAL BANK 
 DEFERRED COMPENSATION PLAN 

FIRST NATIONAL BANK, an Ohio corporation located in Orrville, Ohio, (the “Employer”) hereby establishes the First National Bank
Deferred Compensation Plan (the “Plan”), effective August 22, 2011, for the benefit of (i) a select group of management and highly compensated employees of the Employer and (ii) the members of the Board of Directors of the
Employer, in order to provide such employees and directors with certain deferred compensation benefits. The Plan is an unfunded deferred compensation plan that is intended to qualify for the exemptions provided in sections 201, 301, and 401 of
ERISA. 
 ARTICLE 1 
 DEFINITIONS 
 For the purpose of this Plan, the following phrases or terms
shall have the indicated meanings: 
 1.1 “Administrator” means the Board or its designee. 

1.2 “Affiliate” means any business entity with whom the Employer would be considered a single employer under
Section 414(b) and 414(c) of the Code. Such term shall be interpreted in a manner consistent with the definition of “service recipient” contained in Code Section 409A. 

1.3 Base Salary” means the cash compensation relating to services performed during any calendar year, excluding bonuses,
commissions, distributions from nonqualified deferred compensation plans, fringe benefits, incentive payments, non-monetary awards, overtime, relocation expenses, stock options and other fees, and automobile and other allowances paid to the
Participant for services rendered (whether or not such allowances are included in the Participant’s gross income). Base Salary shall be calculated before reduction for amounts voluntarily deferred or contributed by the Participant pursuant to
qualified or non-qualified plans and shall be calculated to include amounts not otherwise included in the Participant’s gross income under Code Sections 125, 402(e)(3), 402(h), or 403(b) pursuant to plans established by the Employer; provided,
however, that all such amounts will be included in compensation only to the extent that had there been no such plan, the amount would have been payable in cash to the Participant. 

1.4 “Beneficiary” means the person or persons designated in writing by the Participant to receive benefits hereunder in
the event of the Participant’s death. 
 1.5 “Board” means the Board of Directors of the Employer, unless
specifically noted otherwise. 
 1.6 “Bonus” means the amount of incentive compensation paid to an Employee by
the Employer. 
 1.7 “Cause” means any of the following acts or circumstances: (i) willful destruction by
the Participant of property of the Employer having a material value to the Employer; (ii) fraud, embezzlement, theft, or comparable dishonest activity committed by the Participant; (iii) the Participant’s conviction of or entering a
plea of guilty or nolo contendere to any crime constituting a felony or any misdemeanor involving fraud, dishonesty, or moral turpitude; (iv) the Participant’s breach, neglect, refusal, or failure to materially discharge the
Participant’s duties (other than due to physical or mental illness) commensurate with the Participant’s title and function that is not cured within fifteen (15) days after the Participant has received written notice thereof; or
(v) any willful misconduct by the Participant which may cause substantial economic or reputation injury to the Employer, including, but not limited to, sexual or other harassment. 

1.8 “Change in Control” means a change in the ownership or effective control of the Employer, or in the ownership of a
substantial portion of the assets of the Employer, as such change is defined in Code Section 409A and regulations thereunder. 
 1.9 “Compensation” means the Base Salary and Bonus of an Employee and Fees earned by a Director. 

 1.10 “Crediting Rate” means the annual rate equal to fifty (50) basis
points less than the yield the Employer earned on the Employer’s investment portfolio during the immediately preceding Plan Year The Crediting Rate shall reset annually on the first day of each Plan Year. 

1.11 “Claimant” means a person who believes that he or she is being denied a benefit to which he or she is entitled
hereunder. 
 1.12 “Code” means the Internal Revenue Code of 1986, as amended. 

1.13 “Deferral Account” means the Employer’s accounting of a Participant’s accumulated Deferrals plus accrued
interest. 
 1.14 “Deferral Election Form” means each form established from time to time by the Administrator
that the Participants complete, sign and return to the Administrator to designate the amount of Deferrals. 
 1.15
“Deferrals” means the amount of Compensation a Participant elects to defer according to this Plan. 
 1.16
“Director” means a member of the Board. 
 1.17 “Early Termination” means Separation from
Service before Normal Retirement Age except when such Separation from Service occurs due to Termination for Cause. 
 1.18
“Effective Date” means August 1, 2011. 
 1.19 “Election to Participate” means the form
required by the Administrator to indicate acceptance of participation in this Plan. 
 1.20 “Employee” means an
employee of the Employer. 
 1.21 “Fees” means the total fees payable to the Participant in a Plan Year for
their services as a director of the Employer. 
 1.22 “Normal Retirement Age” means the age shown on the
Participant’s Election to Participate and approved by the Board. 
 1.23 “Participant” means an Employee
or Director (i) who is selected to participate in the Plan, (ii) who elects to participate in the Plan, (iii) who signs an Election to Participate and a Beneficiary Designation Form, (iv) whose signed Election to Participate and
Beneficiary Designation Form are accepted by the Administrator, (v) who commences participation in the Plan and (vi) whose Participation has not terminated. 
 1.24 “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 and end on the following December 31. 
 1.25 “Separation from Service” means a termination of the
Participant’s service with the Employer and its Affiliates for reasons other than death. A Separation from Service may occur as of a specified date for purposes of the Plan even if the Participant continues to provide some services for the
Employer or its Affiliates after that date, provided that the facts and circumstances indicate that the Employer and the Participant reasonably anticipated at that date that either no further services would be performed after that date, or that the
level of bona fide services the Participant 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 over the immediately preceding thirty-six (36) month period (or the full period during which the Participant 

 
performed services for the Employer, if that is less than thirty-six (36) months). A Separation from Service will not be deemed to have occurred while the Participant is on military leave,
sick leave, or other bona fide leave of absence if the period of such leave does not exceed six (6) months or, if longer, the period for which a statute or contract provides the Participant with the right to reemployment with the Employer. If
the Participant’s leave exceeds six (6) months but the Participant is not entitled to reemployment under a statute or contract, the Participant incurs a Separation of Service on the next day following the expiration of such six
(6) month period. The Administrator shall have full and final authority, to determine conclusively whether a Separation from Service occurs, and the date of such Separation from Service. 

1.26 “Specified Employee” means an individual that satisfies the definition of a “key employee” of the
Employer as such term is defined in Code §416(i) (without regard to Code §416(i)(5)), provided that the stock of the Employer is publicly traded on an established securities market or otherwise, as defined in Code §1.897-1(m). If the
Participant is a key employee at any time during the twelve (12) months ending on December 31, the Participant is a Specified Employee for the twelve (12) month period commencing on the first day of the following April. 

1.27 “Unforeseeable Emergency” means a severe financial hardship to the Participant resulting from an illness or
accident of the Participant, the Participant’s spouse, the Beneficiary, or the Participant’s dependent (as defined in Code Section 152(a)), loss of the Participant’s property due to casualty, or other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of the Participant. 
 ARTICLE 2 

PARTICIPATION 
 2.1 Selection by Administrator. Participation in the Plan shall be limited to those Employees and Directors selected by the Administrator. 

2.2 Enrollment Requirements. As a condition to participation, each selected individual shall complete, execute and return to the
Administrator (i) an Election to Participate, and (ii) a Beneficiary Designation Form. In addition, the Administrator shall establish from time to time such other enrollment requirements as it determines in its sole discretion are
necessary. 
 2.3 Eligibility; Commencement of Participation. Provided an individual selected to participate in the Plan
has met all enrollment requirements set forth in this Plan and required by the Administrator, that individual will be covered by the Plan and will be eligible to receive benefits at the time and in the manner provided hereunder, subject to the
provisions of the Plan. The Participants will be eligible to participate fully in the Plan until Separation from Service occurs or until the Administrator decides, as described in Section 7.6, that the Participant may not make further
deferrals. 
 ARTICLE 3 
 DEFERRAL ELECTION 
 3.1 Elections Generally. Each Participant may
annually file a Deferral Election Form with the Administrator no later than the end of the Plan Year preceding the Plan Year in which services leading to the Compensation to be deferred will be performed. 

3.2 Initial Election. After being notified by the Administrator of becoming eligible to participate in this Plan, each Participant
may make an initial deferral election by delivering to the Administrator a signed Deferral Election Form within thirty (30) days of becoming eligible. The Deferral Election Form shall set forth the amount of Base Salary, Bonus, and/or Fees to
be deferred. However, if the Participant was eligible to participate in any other account balance plans sponsored by the Employer prior to becoming eligible to participate in this Plan, the initial election to defer under this Plan shall not be
effective until the Plan Year following the Plan Year in which the Participant became eligible to participate in this Plan. 

3.3 Election Changes. Each Participant may modify the amount of Deferrals annually by filing a new Deferral Election Form with the
Employer. The modified deferral shall not be effective until the calendar year following the year in which the subsequent Deferral Election Form is received by the Employer. 

 3.4 Hardship. If an Unforeseeable Emergency occurs, a Participant, by written
instructions to the Employer, may discontinue deferrals hereunder. Any subsequent Deferral Elections may be made only in accordance with Section 2.1 hereof. 
 ARTICLE 4 
 DEFFERAL ACCOUNT 

4.1 Establishing and Crediting. The Employer shall establish a Deferral Account on its books for each Participant and shall credit
to the Deferral Account the following amounts: 
 (a) Any Deferrals hereunder; and 

(b) Interest calculated as follows: on the last day of each month interest shall be credited on the Deferral Account at an
annual rate equal to the Crediting Rate, compounded monthly. 
 4.2 Recordkeeping Device Only. The Deferral Accounts are
solely devices for measuring amounts to be paid under this Plan and not a trust fund of any kind. 
 4.3 Timing of Payments
and Crediting of Interest. All payments made pursuant to Article 5 shall be calculated as if they were made on the first day of the month. Because under Section 4.1(b) interest is credited to the Deferral Account only on the last day of
each month, payments made during a given month will not include any interest earned during the month in which payment occurs. 

Article 5 

PAYMENT OF BENEFITS 
 5.1 Normal Retirement Benefit. Upon a Participant’s Separation from Service after Normal Retirement Age, the Employer shall pay the Participant his or her Deferral Account balance calculated
at Separation from Service. The benefit will be paid as specified in the Participant’s Election to Participate, subject to the conditions and limitations hereinafter set forth. 

5.2 Early Termination Benefit. Upon a Participant’s Early Termination, the Employer shall pay the Participant his or her
Deferral Account balance in a single lump sum within ninety (90) days following Separation from Service. 
 5.3 Death
Prior to Commencement of Benefit Payments. In the event a Participant dies prior to Separation from Service, the Employer shall pay the Participant’s beneficiary the Participant’s Deferral Account balance in a single lump within ninety
(90) days following the Participant’s death. 
 5.4 Death Subsequent to Commencement of Benefit Payments. In
the event a Participant dies while receiving payments, but prior to receiving all payments due and owing hereunder, the Employer shall pay the Participant’s Beneficiary the Participant’s Deferral Account balance in a single lump sum within
ninety (90) days following the Participant’s death. 
 5.5 Hardship Distribution. If an Unforeseeable Emergency
occurs, a Participant may petition the Administrator to receive a distribution from the Plan (a “Hardship Distribution”). The Administrator in its sole discretion may grant such petition. If granted, the Participant shall receive, within
sixty (60) days, a distribution from the Plan only to the extent deemed necessary by the Administrator to remedy the Unforeseeable Emergency, plus an amount necessary to pay taxes reasonably anticipated as a result of the distribution. In any
event, the maximum amount which may be paid out as a Hardship Distribution is the Participant’s Deferral Account balance as of the day the Participant petitioned the Administrator to receive a Hardship Distribution. A Hardship Distribution
shall reduce the Participant’s Deferral Account balance. 
 5.6 Termination for Cause. If the Company terminates a
Participant’s service for Cause, then the Participant shall forfeit all interest credited to the Participant’s Deferral Account and shall be entitled only to the return of the Deferrals. 

 5.7 Restriction on Commencement of Distributions. Notwithstanding any provision
of this Plan to the contrary, if a Participant is considered a Specified Employee at the time of the Participant’s Separation from Service, the provisions of this Section shall govern all distributions hereunder. Distributions which would
otherwise be made to the Participant due to Separation from Service shall not be made during the first six (6) months following Separation from Service. Rather, any distribution which would otherwise be paid to the Participant during such
period shall be accumulated and paid to the Participant in a lump sum on the first day of the seventh month following Separation from Service. All subsequent distributions shall be paid as they would have had this Section not applied. 

5.8 Acceleration of Payments. Except as specifically permitted herein, no acceleration of the time or schedule of any payment may
be made hereunder. Notwithstanding the foregoing, payments may be accelerated, in accordance with the provisions of Treasury Regulation §1.409A-3(j)(4) in the following circumstances: (i) as a result of certain domestic relations orders;
(ii) in compliance with ethics agreements with the federal government; (iii) in compliance with the ethics laws or conflicts of interest laws; (iv) in limited cashouts (but not in excess of the limit under Code
Section 402(g)(1)(B)); (v) to pay employment-related taxes; or (vi) to pay any taxes that may become due at any time that the Plan fails to meet the requirements of Code Section 409A. 

5.9 Delays in Payment by Employer. A payment may be delayed to a date after the designated payment date under any of the
circumstances described below, and the provision will not fail to meet the requirements of establishing a permissible payment event. The delay in the payment will not constitute a subsequent deferral election, so long as the Employer treats all
payments to similarly situated Participants on a reasonably consistent basis. 
 (a) Payments subject to Code
Section 162(m). If the Employer reasonably anticipates that the Employer’s deduction with respect to any distribution under this Plan would be limited or eliminated by application of Code Section 162(m), then to the extent deemed
necessary by the Employer to ensure that the entire amount of any distribution from this Plan is deductible, the Employer may delay payment of any amount that would otherwise be distributed under this Plan. The delayed amounts shall be distributed
to the Participant (or the Beneficiary in the event of the Participant’s death) at the earliest date the Employer reasonably anticipates that the deduction of the payment of the amount will not be limited or eliminated by application of Code
Section 162(m). 
 (b) Payments that would violate Federal securities laws or other applicable law. A
payment may be delayed where the Employer reasonably anticipates that the making of the payment will violate Federal securities laws or other applicable law provided that the payment is made at the earliest date at which the Employer reasonably
anticipates that the making of the payment will not cause such violation. The making of a payment that would cause inclusion in gross income or the application of any penalty provision of the Internal Revenue Code is not treated as a violation of
law. 
 (c) Solvency. Notwithstanding the above, a payment may be delayed where the payment would
jeopardize the ability of the Employer to continue as a going concern. 
 5.10 Treatment of Payment as
Made on Designated Payment Date. Any payment under this Plan made after the required payment date shall be deemed made on the required payment date provided that such payment is made by the latest of: (i) the end of the calendar year in
which the payment is due; (ii) the 15th day of the
third calendar month following the payment due date; (iii) if Employer cannot calculate the payment amount on account of administrative impracticality which is beyond the Participant’s control, the end of the first calendar year which
payment calculation is practicable; and (iv) if Employer does not have sufficient funds to make the payment without jeopardizing the Employer’s solvency, in the first calendar year in which the Employer’s funds are sufficient to make
the payment. 
 5.11 Facility of Payment. If a distribution is to be made to a minor, or to a person who is otherwise
incompetent, then the Administrator may make such distribution: (i) to the legal guardian, or if none, to a parent of a minor payee with whom the payee maintains his or her residence; or (ii) to the conservator or administrator or, if
none, to the person having custody of an incompetent payee. Any such distribution shall fully discharge the Employer and the Administrator from further liability on account thereof. 

 5.12 Excise Tax Limitation. Notwithstanding any provision of this Plan to the
contrary, if any benefit payment hereunder would be treated as an “excess parachute payment” under Code Section 280G, the Employer shall reduce such benefit payment to the extent necessary to avoid treating such benefit payment as an
excess parachute payment. 
 5.13 Changes in Form of Timing of Benefit Payments. The Employer may, subject to the terms
of Section 9.1, amend this Plan to delay the timing or change the form of payments. Any such amendment: 

(a) may not accelerate the time or schedule of any distribution; 

(b) must, for benefits distributable due solely to the arrival of a specified date, or on account of Separation from
Service or Change in Control, 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 

(c) must not take effect until at least twelve (12) months after the amendment is made. 

ARTICLE 6 

BENEFICIARIES 
 6.1 Designation of Beneficiaries. Each Participant may designate a person to receive any benefits payable under the Plan upon the Participant’s death, and the designation may be changed from
time to time by the Participant by filing a new designation. Each designation will revoke all prior designations by the Participant, shall be in the form prescribed by the Administrator and shall be effective only when filed in writing with the
Administrator during the Participant’s lifetime. If a Participant names someone other than the Participant’s spouse as a Beneficiary, the Administrator may, in its sole discretion, determine that spousal consent is required to be provided
in a form designated by the Administrator, executed by the Participant’s spouse and returned to the Administrator. The Participant’s beneficiary designation shall be deemed automatically revoked if the Beneficiary predeceases the
Participant or if the Participant names a spouse as Beneficiary and the marriage is subsequently dissolved. 
 6.2 Absence of
Beneficiary Designation. In the absence of a valid Beneficiary designation, or if, at the time any benefit payment is due to a Beneficiary, there is no living Beneficiary validly named by a Participant, the Employer shall pay the benefit payment
to the Participant’s spouse. If the spouse is not living then the Employer shall pay the benefit payment to the Participant’s living descendants per stirpes, and if there no living descendants, to the Participant’s estate. In
determining the existence or identity of anyone entitled to a benefit payment, the Employer may rely conclusively upon information supplied by the Participant’s personal representative, executor, or administrator. 

6.3 Information to be Furnished by Participants and Beneficiaries; Inability to Locate Participants or Beneficiaries. Any
communication, statement, or notice addressed to a Participant or Beneficiary at his or her last post office address as shown on the Employer’s records shall be binding on the Participant or Beneficiary for all purposes of this Plan. The
Employer shall not be obligated to search for any Participant or Beneficiary beyond the sending of a registered letter to the last known address. 
 ARTICLE 7 
 ADMINISTRATION 

7.1 Administrator Duties. The Administrator shall be responsible for the management, operation, and administration of the Plan.
When making a determination or calculation, the Administrator shall be entitled to rely on information furnished by the Employer, Participants or Beneficiaries. No provision of this Plan shall be construed as imposing on the Administrator any
fiduciary duty under ERISA or other law, or any duty similar to any fiduciary duty under ERISA or other law. 
 7.2
Administrator Authority. The Administrator shall enforce this Plan in accordance with its terms, shall be charged with the general administration of this Plan, and shall have all powers necessary to accomplish its purposes. Such powers
include, but are not limited to, the following: 
 (a) To construe and interpret the terms and provisions of this
Plan and to reconcile any inconsistency; 

 (b) To compute and certify the amount payable to the Participants and the
Beneficiaries; to determine the time and manner in which such benefits are paid; and to determine the amount of any withholding taxes to be deducted; 
 (c) To maintain all records that may be necessary for the administration of this Plan; 
 (d) To provide for the disclosure of all information and the filing or provision of all reports and statements to the Participants, the Beneficiaries and governmental agencies as required by law;

 (e) To make and publish such rules for the regulation of this Plan and procedures for the administration of
this Plan so long as no such rules or procedures are not inconsistent with the terms hereof; 
 (f) To administer
this Plan’s claims procedures; 
 (g) To approve the forms and procedures for use under this Plan; and

 (h) To employ others, including actuaries, attorneys, accountants, independent fiduciaries, recordkeepers and
administrative consultants, to render advice or perform services with respect to the responsibilities of the Administrator under the Plan. 
 7.3 Binding Effect of Decision. The decision or action of the Administrator with respect to any question arising out of or in connection with the administration, interpretation or application of
this Plan and the rules and regulations promulgated hereunder shall be final, conclusive and binding upon all persons having any interest in this Plan. 
 7.4 Compensation, Expenses and Indemnity. The Administrator shall serve without compensation for services rendered hereunder. The Administrator is authorized at the expense of the Employer to
employ such legal counsel and recordkeeper as it may deem advisable to assist in the performance of its duties hereunder. Expense and fees in connection with the administration of this Plan shall be paid by the Employer. 

7.5 Employer Information. The Employer shall supply full and timely information to the Administrator on all matters relating to
the Participants’ compensation, death, Disability or Separation from Service, and such other information as the Administrator reasonably requires. 
 7.6 Termination of Participation. If the Administrator determines in good faith that a Participant no longer qualifies as a member of a select group of management or highly compensated employees,
as determined in accordance with ERISA, the Administrator shall have the right, in its sole discretion, to prohibit the Participant from making additional deferrals hereunder in future Plan Years. 

7.7 Compliance with Code Section 409A. The Employer intends that the Plan comply with the provisions of Code
Section 409A to prevent the inclusion in gross income of any amounts deferred hereunder in a taxable year prior to the year in which amounts are actually paid to the Participants or Beneficiaries. This Plan shall be construed, administered and
governed in a manner that affects such intent, and the Administrator shall not take any action that would be inconsistent therewith. 
 ARTICLE 8 
 CLAIMS AND REVIEW PROCEDURES 

8.1 Claims Procedure. A Claimant who has not received benefits under this Plan that he or she believes should be distributed shall
make a claim for such benefits as follows. 
 (a) Initiation – Written Claim. The Claimant initiates
a claim by submitting to the 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. 

 (b) Timing of Administrator Response. The Administrator shall
respond to such Claimant within ninety (90) days after receiving the claim. If the Administrator determines that special circumstances require additional time for processing the claim, the 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 Administrator expects to render its decision. 
 (c) Notice of Decision. If the Administrator
denies part or all of the claim, the Administrator shall notify the Claimant in writing of such denial. The Administrator shall write the notification in a manner calculated to be understood by the Claimant. The notification shall set forth:
(i) the specific reasons for the denial; (ii) a reference to the specific provisions of this Plan on which the denial is based; (iii) a description of any additional information or material necessary for the Claimant to perfect the
claim and an explanation of why it is needed; (iv) an explanation of this Plan’s review procedures and the time limits applicable to such procedures; and (v) a statement of the Claimant’s right to bring a civil action under ERISA
Section 502(a) following an adverse benefit determination on review. 
 8.2 Review Procedure. If the Administrator
denies part or all of the claim, the Claimant shall have the opportunity for a full and fair review by the Administrator of the denial as follows. 
 (a) Initiation – Written Request. To initiate the review, the Claimant, within sixty (60) days after receiving the Administrator’s notice of denial, must file with the Administrator
a written request for review. 
 (b) 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 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. 
 (c) Considerations on Review. In considering the review, the 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. 
 (d) Timing of
Administrator Response. The Administrator shall respond in writing to such Claimant within sixty (60) days after receiving the request for review. If the Administrator determines that special circumstances require additional time for
processing the claim, the 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 Administrator expects to render its decision. 
 (e) Notice of Decision. The Administrator shall notify the Claimant in writing of its decision on review. The 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 Plan 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 9 

AMENDMENT AND TERMINATION 
 9.1 Generally. The Board may unilaterally amend or terminate this Plan at any time. The termination of this Plan shall not cause a distribution of benefits under this Plan. Rather, upon
such termination benefit distributions will be made at the earliest distribution event permitted under Article 5. Notwithstanding the foregoing, any amendment to the timing or form of payments to be made under Article 5 must be consented to in
writing be any Participants impacted by the proposed amendment. 

 9.2 Effect of Complete Termination. Subject to the requirements of Code
Section 409A and Treasury Regulations §1.409A-3(j)(4)(ix), in the event of complete termination of the Plan, the Employer shall pay the Deferral Account balance to the Participants. Such complete termination of the Plan shall occur only
under the following circumstances and conditions. 
 (a) Corporate Dissolution or Bankruptcy. The Employer
may terminate and liquidate the Plan within twelve (12) months of a corporate dissolution taxed under Code Section 331, or with the approval of a bankruptcy court pursuant to 11 U.S.C. §503(b)(1)(A), provided that all benefits under
the Plan are included in the Participants’ gross income in the latest of: (i) the calendar year which the termination occurs; (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 payment is administratively practicable. 
 (b) Discretionary
Termination. The Employer may terminate and liquidate this Plan provided that: (i) all arrangements sponsored by the Employer and Affiliates that would be aggregated with any terminated arrangements under Treasury Regulations
§1.409A-1(c) are terminated; (ii) no payments, other than payments that would be payable under the terms of this Plan if the termination had not occurred, are made within twelve (12) months of this Plan’s termination;
(iii) all payments are made within twenty-four (24) months following this Plan’s termination; (iv) neither the Employer nor any of its Affiliates adopt a new arrangement that would be aggregated with any terminated arrangement
under Treasury Regulations §1.409A-1(c) if a Participant participated in both arrangements, at any time within three (3) years following the date of termination of the Plan; and (v) the termination does not occur proximate to a
downturn in the financial health of the Employer. 
 (c) Change in Control. The Employer may terminate the
Plan within the thirty (30) days preceding or the twelve (12) months following a Change in Control. This Plan will then be treated as terminated only if all substantially similar arrangements sponsored by the Employer which are treated as
deferred under a single plan under Treasury Regulations §1.409A-1(c)(2) are terminated and liquidated with respect to each participant who experienced the Change in Control so that the Participants and any participants in any such similar
arrangements are required to receive all amounts of compensation deferred under the terminated arrangements within twelve (12) months of the date of termination of the arrangements. 

ARTICLE 10 

MISCELLANEOUS 
 10.1 No Effect on Employment Rights. This Plan constitutes the entire agreement between the Employer and the Participants as to the subject matter hereof. No rights are granted to the Participants
by virtue of this Plan other than those specifically set forth herein. Nothing contained herein will confer upon the Participants the right to be retained in the service of the Employer nor limit the right of the Employer to discharge or otherwise
deal with the Participants without regard to the existence hereof. 
 10.2 State Law. To the extent not governed by
ERISA, the provisions of this Plan shall be construed and interpreted according to the internal law of the State of Ohio without regard to its conflicts of laws principles. 
 10.3 Validity. In case any provision of this Plan shall be illegal or invalid for any reason, said illegality or invalidity shall affect the remaining parts hereof, but this Plan shall be construed
and enforced as if such illegal or invalid provision had never been inserted herein. 
 10.4 Nonassignability. Benefits
under this Plan cannot be sold, transferred, assigned, pledged, attached or encumbered in any manner. 
 10.5 Unsecured
General Creditor Status. Payment to a Participant or any Beneficiary hereunder shall 

 
be made from assets which shall continue, for all purposes, to be part of the general, unrestricted assets of the Employer and no person shall have any interest in any such asset by virtue of any
provision of this Plan. The Employer’s obligation hereunder shall be an unfunded and unsecured promise to pay money in the future. In the event that the Employer purchases an insurance policy insuring the life of the Participants to recover the
cost of providing benefits hereunder, neither the Participants nor the Beneficiaries shall have any rights whatsoever in said policy or the proceeds therefrom. 
 10.6 Life Insurance. If the Employer chooses to obtain insurance on the life of the Participant in connection with its obligations under this Plan each Participant hereby agrees to take such
physical examinations and to truthfully and completely supply such information as may be required by the Employer or the insurance company designated by the Employer. 
 10.7 Unclaimed Benefits. Each Participant shall keep the Employer informed of the Participant’s current address and the current address of the Beneficiary. If the location of a Participant is
not made known to the Employer within three years after the date upon which any payment of any benefits may first be made, the Employer shall delay payment of the Participant’s benefit payment(s) until the location of the Participant is made
known to the Employer; however, the Employer shall only be obligated to hold such benefit payment(s) for the Participant until the expiration of three (3) years. Upon expiration of the three (3) year period, the Employer may discharge its
obligation by payment to the Beneficiary. If the location of the Beneficiary is not made known to the Employer by the end of an additional two (2) month period following expiration of the three (3) year period, the Employer may discharge
its obligation by payment to the Participant’s estate. If there is no estate in existence at such time or if such fact cannot be determined by the Employer, the Participant and Beneficiary shall thereupon forfeit all rights to any benefits
provided under this Plan. 
 10.9 Removal. Notwithstanding anything in this Plan to the contrary, the Employer
shall not distribute any benefit to a Participant under this Plan if the Participant is subject to a final removal or prohibition order issued pursuant to Section 8(e) of the Federal Deposit Insurance Act. Furthermore, any payments made to a
Participant pursuant to this Plan shall, if required, comply with 12 U.S.C. 1828, FDIC Regulation 12 CFR Part 359 and any other regulations or guidance promulgated thereunder. 
 10.10 Notice. Any notice, consent or demand required or permitted to be given to the Employer or Administrator under this Plan shall be sufficient if in writing and hand-delivered or sent by
registered or certified mail to the Employer’s principal business office. Any notice or filing required or permitted to be given to a Participant under this Plan shall be sufficient if in writing and hand-delivered or sent by mail to the last
known address of the Participant. Any 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 or on the receipt for registration or certification. 

10.11 Headings and Interpretation. Headings and sub-headings in this Plan are inserted for reference and convenience only and
shall not be deemed part of this Plan. Wherever the fulfillment of the intent and purpose of this Plan requires and the context will permit, the use of the masculine gender includes the feminine and use of the singular includes the plural.

 10.12 Alternative Action. In the event it becomes impossible for the Employer or the Administrator to perform any act
required by this Plan due to regulatory or other constraints, the Employer or Administrator may perform such alternative act as most nearly carries out the intent and purpose of this Plan and is in the best interests of the Employer, provided that
such alternative act does not violate Code Section 409A. 
 10.13 Coordination with Other Benefits. The benefits
provided for the Participants or the Beneficiaries under this Plan are in addition to any other benefits available to the Participants under any other plan or program for employees and directors of the Employer. This Plan shall supplement and shall
not supersede, modify, or amend any other such plan or program except as may otherwise be expressly provided herein. 
 10.14
Inurement. This Plan shall be binding upon and shall inure to the benefit of the Employer, its successor and assigns, and the Participants, the Participants’ successors, heirs, executors, administrators, and the Beneficiaries.

 10.15 Tax Withholding. The Employer may make such provisions and take such action as
it deems necessary or appropriate for the withholding of any taxes which the Employer is required by any law or regulation to withhold in connection with any benefits under the Plan. The Participants shall be responsible for the payment of all
individual tax liabilities relating to any benefits paid hereunder. 
 10.16 Aggregation of Plan. If the Employer offers
other account balance deferred compensation plans in addition to this Plan, this Plan and those plans shall be treated as a single plan to the extent required under Code Section 409A. 

IN WITNESS WHEREOF, a representative of the Employer has executed this Plan as indicated below: 

Employer: 
  

			
	By:	 	 /s/ James R. VanSickle

		 	James R. VanSickle, Chief Financial OfficerExhibit 10.5

 Exhibit 10.5 
 ASHEVILLE SAVINGS BANK 
 CHANGE IN CONTROL SEVERANCE PLAN 

Section 1. Plan Name and Effective Date 
 1.1 The name of the Plan is the Asheville Savings Bank Change in Control Severance Plan. The effective date of the Plan shall be October 11, 2011. 

Section 2. Purpose 

2.1 The purpose of the Plan is to provide severance pay to eligible Employees following a Change in Control and under the conditions set
forth in this Plan. Severance payments under the Plan are designed to provide the Employee with funds while seeking other employment. 

Section 3. Definitions 
 Bank shall mean the Asheville Savings Bank, a North Carolina-chartered savings bank. 
 Board shall mean the Board of Directors (or a Committee thereof) of the Bank. 
 Cause shall mean: (1) willful failure to follow or to cooperate in carrying out any of the lawful policies of Company or the Bank or the lawful directions of the Board, (2) continued and
willful neglect of duties for or on behalf of the Bank, (3) willful misconduct in connection with the performance of any of the Employee’s duties, (4) conduct which results in the Employee’s suspension and/or temporary
prohibition or removal and/or permanent prohibition from participation in the conduct of the affairs of the Bank pursuant to the rules and regulations of the primary federal or state banking agency having regulatory jurisdiction over the Bank,
(5) conviction of a felony or any misdemeanor involving moral turpitude or willful violation of any law, rule or regulation to which the Bank is subject or of a final order or other formal administrative action entered into, by or imposed upon
the Bank; (6) willful violation of any code of conduct or standards of ethics applicable to employees of the Bank that results in material and demonstrable damage to the business or reputation of the Bank, or (7) the issuance of a
permanent injunction or similar remedy against the Employee preventing the Employee from executing or performing the duties of his position. The Employee shall be entitled to at least seven (7) days’ prior written notice of the Bank’s
intention to terminate his or her employment for any Cause, specifying the grounds for such termination and the means, if any, to rectify such conduct, and seven (7) days to rectify or appeal in writing to the Board regarding the existence of
such Cause. 
 Change in Control shall mean and shall be deemed to have occurred upon the occurrence of any of the
following events. 
 (1) The acquisition by any “person” or “group” (as defined in or pursuant to Sections
13(d) and 14(d) of the Exchange Act) (other than Company, any Subsidiary or any Company or Subsidiary’s employee benefit plan), directly or indirectly, as “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) of
securities representing fifty percent (50%) or more of either the then outstanding shares or the combined voting power of the then outstanding securities of Company or the Bank; 

(2) Either a majority of the directors of Company elected at Company’s annual stockholders meeting shall have been nominated for
election other than by or at the direction of the “incumbent directors” of Company, or the “incumbent directors” shall cease to constitute a majority of the directors of Company. The term “incumbent director” shall mean
any director who was a director of Company on the 

 
Effective Date and any individual who becomes a director of Company subsequent to the Effective Date and who is elected or nominated by or at the direction of at least majority of the then
incumbent directors; or 
 (3) The consummation of (x) a merger, consolidation or other business combination of Company
with any other “person” or “group” (as defined in or pursuant to Sections 13(d) and 14(d) of the 1934 Act) or affiliate thereof, other than a merger or consolidation that would result in the outstanding common stock of Company
immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into common stock of the surviving entity or a parent or affiliate thereof) more than fifty percent (50%) of the outstanding common stock
of Company or such surviving entity or a parent or affiliate thereof outstanding immediately after such merger, consolidation or other business combination, or (y) a plan of complete liquidation of Company or the Bank or an agreement for the
sale or disposition of all or substantially all of Company’s or the Bank’s assets. 
 Comparable Position shall
mean a position that, following a Change in Control, would (i) provide the Employee with base compensation that is comparable to that provided to the Employee prior to the Change in Control, (ii) be in a location that would not require the
Employee to increase his or her daily one way commuting distance by more than thirty-five (35) miles as compared to the Employee’s commuting distance immediately prior to the Change in Control and (iii) have job skill requirements and
duties that are comparable to the requirements and duties of the position held by the Employee prior to the Change in Control. 

Employee shall mean a regular, active full-time, part-time, or Part-time Plus employee of the Bank, but excludes an
employee who has a written employment agreement, severance agreement, or similar agreement with the Bank providing for severance payment(s) in the event of termination of employment. 

Participant shall mean an Employee who satisfies the eligibility requirements as set forth in Section 4.1. 

Pay shall mean the base or regular compensation rate as of the calendar month preceding the date of employment termination. In the
case of a non-exempt Employee, “Pay” shall not include overtime compensation paid to such Employee during such month. 

Payment Period shall mean, with respect to payment by the Bank of the Severance Payment pursuant to Section 5.1, the number
of weeks or months of Pay a Participant is entitled to under Section 5.1. The Payment Period is not dependent on whether a benefit payment under Section 5 is made periodically or in a lump sum. 

Plan shall mean this Asheville Savings Bank Employee Severance Plan as it may be amended from time to time. 

Service shall mean all employment with the Bank, or any successor thereof. 

Severance Payment has the meaning given to such term in Section 5.1. 

Section 4. Eligibility 
 4.1 An Employee shall be eligible to receive a Severance Payment as set forth in Section 5, if: 
  

	 	(a)	 as of the Employee’s termination date, the Employee has completed at least one (1) year

  
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of Service with the Bank (provided, however, that an Employee serving as a Senior Vice President, Vice President, Treasurer or Corporate Secretary shall not be subject to the foregoing minimum
service requirement), 

  

	 	(b)	on or after the effective date of a Change in Control and continuing through the first anniversary of the Change in Control, the Employee’s employment is
terminated by the Bank, other than under the circumstances described in Section 5.5; and 

  

	 	(c)	the Employee signs a general release waiving any employment-related claims against the Bank in a form provided by the Bank. 

Section 5. Severance Payment Calculation and Payment 
 5.1 A Participant under the Plan shall be eligible to receive a severance payment calculated as follows (the “Severance Payment”): 

Participant who is a Senior Vice President or Treasurer: Eighteen (18) months of Pay. 

Participant who is a Vice President: Twelve (12) months of Pay. 

Participant who is an Assistant Vice President or Corporate Secretary: Nine (9) months of Pay. 

All other Non-Officer Participants. – the greater of: (a) two (2) weeks of Pay for each completed year of Service,
calculated based on the Employee’s hire date, but not to exceed fifty two (52) weeks of Pay, or (b) four weeks of Pay. 
 Notwithstanding anything herein to the contrary, the Severance Payment shall not exceed two (2) times the lesser of: 
  

	 	(a)	the Participant’s annual compensation (as defined in Internal Revenue Code of 1986, as amended (the “Code”) Regulation Section 1.415-2(d)(2)) for
the calendar year preceding the calendar year in which the employment terminates; and 

  

	 	(b)	the maximum amount of compensation under Section 401(a)(17) of the Code for the calendar year in which occurs the date of employment termination.

 5.2 The Bank reserves the right to offset the payments described in Section 5.1 above against any monies
the Participant owes the Bank. 
 5.3 Payments under the Plan shall be made during the Payment Period in accordance with the
regular payroll schedule of the Bank, subject to any necessary or required benefit or tax withholding. 
 5.4 If a Participant
dies before receiving a payment due under the Plan, such payment shall continue to be paid to the beneficiary designated by the Participant at the time of termination of employment. If no beneficiary has been designated, then such payments shall be
made to the Participant’s estate. 
 5.5 Notwithstanding anything in this Plan to the contrary, in the event of an
Employee’s involuntary termination for Cause, the voluntary termination by the Employee of his or her employment for any reason, other than upon the Bank’s failure to provide the Employee with a Comparable Position,

  
 3 

 
or the Employee’s termination of employment after the Plan terminates, the Employee will not be entitled to any compensation under this Section 5, other than regular compensation and
benefits to which the Employee is entitled through the date of termination. 
 Section 6. Administration 

6.1 The Plan is sponsored and shall be administered by the Bank. 

6.2 The Bank may at any time delegate to a person or body, or reserve therefore, any of the fiduciary responsibilities or administrative
duties with respect to the Plan. The Bank, or any such delegate, shall have the complete discretion and authority to interpret the Plan, including matters regarding eligibility and benefit entitlement. 

6.3 Subject to the limitation of the provisions of the Plan, the Bank may establish such rules for the administration of the Plan as the
Bank may deem desirable. 
 6.4 The expenses of administering the Plan, including the benefits, shall be paid by the Bank out of
its general assets. 
 6.5 The Plan and all of its records shall be kept on a calendar year basis, beginning January 1 and
ending December 31 of each calendar year. 
 6.6 Except as required by applicable law, benefits provided under the Plan
shall not be subject to assignment or alienation, since they are primarily for the support and maintenance of the Participants. Likewise, such benefits shall not be subject to attachment by creditors of or through legal process against the Bank or
any Participant. 
 6.7 The Bank reserves the right to change, amend or terminate the Plan by a resolution adopted by a majority
of the Board. The Plan shall be reviewed annually by the Compensation Committee of the Board. Participants will be notified of any changes, and all changes will be subject to the Plan’s provisions and applicable laws. Notwithstanding the
foregoing, the Plan is not subject to amendment or termination on or after the effective date of a Change in Control. 
 6.8
Nothing herein shall be construed as giving to any Employee of the Bank any right to remain in the employ of the Bank, alter an Employee’s status as an at-will employee, or provide or be construed as providing any right to claim any other
benefit or allowance after termination of employment with the Bank except as expressly provided for herein. 
 Section 7. Miscellaneous

 7.1 An Employee who believes they are entitled to benefits under the Plan, must submit a written claim to the Bank within
sixty (60) days of the date of the alleged occurrence giving rise to the claim. If the Bank or any delegate believes that the claim should be denied, the Employee shall be notified in writing of the denial of the claim within ninety
(90) days after the Bank’s receipt of the claim. Such notice shall (a) set forth the specific reason or reasons for the denial, making reference to the pertinent provisions of the Plan on which the denial is based; (b) describe
any additional material or information that should be received before the claim may be acted upon favorably and explain the reason why such material or information, if any, is needed; (c) inform the Employee of his or her right pursuant to this
section to request review of the decision by the Bank; and (d) explain the Plan’s claims review procedure and the time limits applicable to such procedures. An Employee who believes that he or she has submitted all available and relevant
information may appeal the denial of a claim to the Bank by 

  
 4 

 
submitting a written request for review within sixty (60) days after the date on which such denial is received. Such period may be extended by the Bank for good cause shown. During this
period, the Employee making the request for review may examine the Plan documents, records and other information relevant to the Employee’s claim for benefits. The Bank shall decide whether or not to grant the claim within sixty (60) days
after receipt of the request for review, but this period may be extended by the Bank for up to an additional sixty (60) days in special circumstances. The Bank’s decision shall be in writing, shall include specific reasons for the
decision, shall refer to pertinent provisions of the Plan on which the decision is based, and shall be conclusive and binding on all persons. 
 7.2. The Plan and the rights of the parties hereunder shall be governed by and interpreted in accordance with federal law, and, to the extent applicable, the laws of North Carolina. The invalidity or
unenforceability of any provision or any part of any provision, hereof shall in no way effect the validity or enforceability of any other provision or part hereof. 
 Section 8. Regulatory Requirements 
 (1) If the Employee is removed
and/or permanently prohibited from participating in the conduct of the Employer’s affairs by an order issued under Section 8(e)(4) or 8(g)(1) of the Federal Deposit Insurance Act (“FDIA”) (12 U.S.C. 1818(e)(4) and (g)(1)), all
obligations of the Employer under this Agreement shall terminate, as of the effective date of such order, except for the payment of base salary due and owing on the effective date of said order, and reimbursement of expenses incurred as of the
effective date of termination. 
 (2) If the Employee is suspended and/or temporarily prohibited from participating in the
conduct of the Employer’s affairs by a notice served under Section 8(e)(3) or 8(g)(1) of the FDIA (12 U.S.C. 1818(e)(3) and (g)(1)), all obligations of the Employer 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 Employer shall reinstate (in whole or in part) any of its obligations which were suspended. 
 (3) If the Employer 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 the vested rights of the parties
shall not be affected. 
 (4) All obligations under this Plan shall be terminated, except to the extent a determination is made
that continuation of the contract is necessary for the continued operation of the Employer (1) by the director of the Federal Deposit Insurance Corporation (the “FDIC”) or his or her designee (the “Director”), at the time
the FDIC enters into an agreement to provide assistance to or on behalf of the Employer under the authority contained in Section 13(c) of the FDIA; or (2) by the Director, at the time the Director approves a supervisory merger to resolve
problems related to operation of the Employer when the Employer is determined by the Director to be in an unsafe and unsound condition. Any rights of an Employee that have already vested, however, shall not be affected by such action. 

(5) All obligations under this Plan are further subject to such conditions, restrictions, limitations and forfeiture provisions as may
separately apply pursuant to any applicable state banking laws. 
 (6) Notwithstanding anything contained in this Agreement to
the contrary, no payments shall be made under any other provision herein in contravention of the requirements of the Federal Deposit Insurance Act (12 U.S.C. 1828(k)). 

  
 5

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