Document:

Form of Salary Continuation Agreement

 EXHIBIT 10.3 
  
  
 [Form of Agreement and description of benefits
for each Director] 
 APPALACHIAN COMMUNITY BANK 
 SALARY CONTINUATION AGREEMENT 
 [As Amended and Restated to Comply with 
 Section 409A of the Internal Revenue Code] 
 THIS SALARY CONTINUATION AGREEMENT, as amended and restated (the “Agreement”), is adopted as of the      day of
            , 20    , by and among APPALACHIAN COMMUNITY BANK, a state-chartered commercial bank located in Ellijay, Georgia (the “Bank”),
APPALACHIAN BANCSHARES, INC., the parent company of the Bank (the “Holding Company”), and
                                        
(the “Director”). 
 The purpose of this Agreement is to provide to the Director, as a member of a select group which contributes
materially to the continued growth, development and future business success of the Bank and the Holding Company, the specified benefits, as well as incentives for continued service to the Bank and Holding Company, as set forth herein. This Agreement
shall be unfunded for tax purposes and for purposes of Title I of the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended from time to time. The Bank will pay the benefits provided under this Agreement from its general
assets. 
 The Bank, the Holding Company and the Director, for and in consideration of the above stated contributions of the Director and
other good and valuable consideration, do hereby 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 Bank, under Generally Accepted Accounting Principles (”GAAP”), for the Bank’s
obligation to the Director under this Agreement, by applying the Discount Rate. Any amortization method, if acceptable under GAAP, may be used to determine the Accrual Balance. However, once chosen, the method must be consistently applied. The
Accrual Balance for each Plan Year shall be reported annually by the Bank to the Director in the form of Schedule A of this Agreement. 

  

	1.2	“Beneficiary” means each designated person, or the estate of the deceased Director, entitled to benefits, if any, upon the death of the Director, and as otherwise
determined pursuant to Article 3 and Article 4. 

 Appalachian Community Bank 
 Salary Continuation Agreement 
  
  

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

  

	1.4	“Change of Control” means the occurrence of any of the following conditions: 

 (i) Any “Person” [which term, for purposes of this Section 1.4, shall mean an individual (other than the Director), individuals acting in
concert or as a “group” under the Securities Exchange Act of 1934, or a corporation, partnership, trust or other form of entity, (other than the Holding Company, the Bank, a securities underwriter of the shares of the Holding Company or
the Bank, a corporation owned by stockholders of the Holding Company in the same proportions as their ownership of stock in the Holding Company, or a fiduciary holding securities under an employee benefit plan of the Holding Company or Bank)]
becomes, directly or indirectly, the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934) of securities of the Holding Company or Bank which represent twenty-five percent (25%) or more of the voting
power of the then outstanding securities of the Holding Company or Bank; or 
 (ii) Any Person acquires, directly or indirectly, the ability
to control the election of a majority of the directors of either the Bank or the Holding Company; or 
 (iii) Any Person acquires, directly or
indirectly, the ability to exercise a controlling influence over the management of policies of either the Holding Company or the Bank; or 
 (iv) During any period of two (2) consecutive years, the “Continuing Directors” (which term, for purposes of this Section 1.4, means these individuals who, (a) at the beginning of such two-year period, constitute
the board of directors of either the Holding Company or the Bank or (b) whose election or nomination as directors of the Holding Company or the Bank were approved by a vote of least two-thirds of these previously elected directors) cease for
any reason to constitute at least two-thirds of the board of directors of either the Holding Company or the Bank; or 
 (v) The consummation
of a merger or statutory share exchange of the Holding Company or the Bank with any Person, other than a merger or statutory share exchange which would (a) result in the voting securities of the Holding Company or Bank outstanding immediately
prior thereto, continuing to represent at least seventy-five percent (75%) of the combined voting power of the voting securities of the Holding Company, Bank or such other surviving entity, outstanding immediately after such merger or statutory
share exchange, in substantially the same proportions as their ownership immediately prior to such merger or statutory share exchange, or (b) effect or implement a recapitalization of the Holding Company or Bank (or similar transaction), in
which no Person acquires more than fifty percent (50%) of the combined voting power of the then-outstanding securities of the Holding Company or Bank; or 
  

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 Salary Continuation Agreement 
  
  

 (vi) The shareholders of the Holding Company or Bank approve a plan of complete liquidation of the
Holding Company or the Bank, or an agreement for the sale or disposition by the Holding Company or the Bank of all or substantially all of the assets of the Holding Company or the Bank. 
  

	1.5	“Change of Control Benefit” means the benefit provided to the Director under Section 2.4 of this Agreement, pursuant to the terms of this Agreement. The amount
of the Change of Control Benefit, as determined under Section 2.4, is an annual amount equal to the projected annual benefit to be paid to the Director at age 70, as set forth in Section 2.1.1, which annual amount shall be paid to the
Director in equal monthly payments for each of the ten (10) consecutive twelve (12) month periods next following the Director’s Normal Retirement Age. 

  

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

  

	1.7	“Disability” means the Director: (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months; or (ii) is, by reason of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan
covering employees or directors of the Bank or Holding Company. Medical determination of Disability may be made by either the Social Security Administration or by the provider of disability insurance covering employees or directors of the Bank
provided that the definition of “disability” applied under such insurance program complies with the requirements of the preceding sentence. Upon the request of the Plan Administrator, the Director must submit proof to the Plan
Administrator of the Social Security Administration’s or the provider’s determination. 

  

	1.8	“Disability Benefit” means the benefit provided to the Director under Section 2.3 of this Agreement, pursuant to the terms of this Agreement. The amount of the
Disability Benefit, as determined under Section 2.3, is an annual amount equal to the projected annual benefit to be paid to the Director at age 70, as set forth in Section 2.1.1, which annual amount shall be paid to the Director in equal
monthly payments for each of the ten (10) consecutive twelve (12) month periods next following the Director’s Normal Retirement Age. 

  

	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 sole discretion, may adjust the Discount Rate to maintain the rate within reasonable standards according to GAAP. 

  

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	1.10	“Early Termination” means a termination of the Director’s service with the Holding Company or Bank before Normal Retirement Age, for reasons other than death,
Disability, a Termination for Cause, or an involuntary Termination of Service (other than a Termination for Cause) or following a Change of Control. 

  

	1.11	“Early Termination Benefit” means the benefit provided to the Director under Section 2.2 of this Agreement, and as set forth in Schedule A of this
Agreement, as updated annually pursuant to the terms of this Agreement. The amount of the Early Termination Benefit, as determined under Section 2.2 and as set forth in Schedule A, is a one-time, lump-sum amount to be paid to the
Director within thirty (30) days following the Director’s Early Termination Date, or at such later date as may otherwise be required by this Agreement or by applicable law (including Code Section 409A.) 

  

	1.12	“Early Termination Date” means the date on which Early Termination occurs. 

  

	1.13	“Effective Date” means June 1, 2004. 

  

	 1.14
	 “Normal Retirement Age” means the earlier of the Director’s 70th birthday or the date upon which the Director completes 20 years of service with the Bank and/or Holding Company. 

  

	1.15	“Normal Retirement Benefit” means the benefit provided to the Director pursuant to the provisions of Section 2.1 of this Agreement, and as set forth in
Schedule A of this Agreement, as updated annually pursuant to the terms of this Agreement. The amount of the Normal Retirement Benefit, as determined under Section 2.1 and as set forth in Schedule A, is an annual amount to be paid
to the Director in equal monthly payments for each of the ten (10) consecutive twelve (12) month periods next following the Director’s Normal Retirement Date, or at such later date as may be required under this Agreement or by
applicable law (including Code Section 409A). 

  

	1.16	“Normal Retirement Date” means the date of the Director’s Termination of Service, occurring on or after the Director’s Normal Retirement Age.

  

	1.17	“Plan Administrator” means the plan administrator described in Article 8. 

  

	1.18	“Plan Year” means each twelve-month period commencing on the Effective Date. 

  

	1.19	“Termination for Cause” has that meaning set forth in Article 5. 

  

	1.20	“Termination of Service” means termination of the Director’s service with the Bank or Holding Company, for reasons other than death. Whether a Termination of
Service has occurred shall be determined in accordance with the requirements of Code Section 409A, based the applicable facts and circumstances required to be considered thereunder. 

  

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 Article 2 
 Benefits During Lifetime 
  

	2.1	Normal Retirement Benefit. The benefit payable to the Director under this Section 2.1 is the Normal Retirement Benefit, an annual benefit set forth in Schedule A
of this Agreement (as updated annually) for the Plan Year during which the Director’s Normal Retirement Date occurs. Upon the Director’s Normal Retirement Date, the Bank shall pay to the Director the Normal Retirement Benefit, as 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 for the first Plan Year is Eighteen Thousand Dollars ($18,000). Commencing on the first day of the second
Plan Year, and on the first day of each Plan Year thereafter, the annual benefit shall be increased three percent (3%) from the previous Plan Year, which, and including, the Plan Year in which the Director’s Normal Retirement Date occurs.
The Director’s projected annual benefit, as of the first day of the Plan Year occurring in the calendar year during which the Director reaches age 70, is
                                        
Dollars ($            ). 

  

	 	2.1.2	Payment of Benefit. The Bank shall pay the Normal Retirement Benefit to the Director in equal monthly installments, commencing on the first day of the month following the
Director’s Normal Retirement Date, or at such later date as may otherwise be required by this Agreement or by applicable law (including Code Section 409A). This annual benefit shall be paid to the Director for each of the ten
(10) consecutive twelve (12) month periods next following the Director’s Normal Retirement Date, for a total of 120 consecutive equal monthly payments. 

  

	2.2	Early Termination Benefit. Upon the Director’s Early Termination, the Bank shall pay to the Director the Early Termination Benefit, as described in this
Section 2.2, in lieu of any other benefit under this Article. 

  

	 	2.2.1	Amount of Benefit. The benefit payable to the Director under this Section 2.2 is the Early Termination Benefit, a one-time, lump-sum amount set forth on Schedule
A of the Agreement (as updated annually) for the Plan Year during which the Director’s Early Termination Date occurs. The amount of the Early Termination Benefit payable to the Director in any Plan Year shall be equal to the Director’s
Accrual Balance accrued under this Agreement for all Plan Years, as set forth on Schedule A. 

  

	 	2.2.2	Payment of Benefit. The Bank shall pay the Early Termination Benefit to the Director, as a one-time, lump-sum amount, within thirty (30) days following the
Director’s Early Termination Date, or at such later date as may otherwise be required by this Agreement or by applicable law (including Code Section 409A). 

  

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	2.3	Disability Benefit. Upon the Director’s Termination of Service due to Disability prior to Normal Retirement Age, the Bank shall pay to the Director 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 payable to the Director under this Section 2.3 is the Disability Benefit, an annual benefit in an amount equal to the projected
annual benefit to be paid to the Director at age 70, set forth in Section 2.1.1 of this Agreement. 

  

	 	2.3.2	Payment of Benefit. The Bank shall pay the Disability Benefit to the Director in equal monthly installments, commencing with the month following the Director’s Normal
Retirement Age, or at such later date as may otherwise be required by this Agreement or by applicable law (including Code Section 409A). This annual benefit shall be paid to the Director for each of the ten (10) consecutive twelve
(12) month periods next following the Director’s Normal Retirement Age, for a total of 120 consecutive equal monthly payments. 

  

	2.4	Change of Control Benefit. Upon a Change of Control followed by the Director’s Termination of Service (other than a Termination for Cause), the Bank shall pay to the
Director the Change of Control Benefit, as described in this Section 2.4, in lieu of any other benefit under this Article. 

  

	 	2.4.1	Amount of Benefit. The benefit payable to the Director under this Section 2.4 is an annual benefit in an amount equal to the projected annual benefit to be paid
to the Director at age 70, the Directors Normal Retirement Age, as set forth in Section 2.1.1 of this Agreement. 

  

	 	2.4.2	Payment of Benefit. The Bank shall pay the Change of Control Benefit to the Director in equal monthly installments commencing with the month following the Director’s
Normal Retirement Age or at such later date as may otherwise be required by this Agreement or by applicable law (including Code Section 409A). This annual benefit shall be paid to the Director for each of the next ten (10) consecutive
years next following the Director’s Normal Retirement Age, for a total of 120 consecutive equal monthly payments. 

  

	2.5	Failure to be Nominated or Reelected. Upon the failure of the Director to be nominated or reelected as a director of either of the Bank or the Holding Company (for any reason
other than for a Termination for Cause), the Bank shall pay to the Director the benefit described in this Section 2.5. 

  

	 	2.5.1	Amount of Benefit. The benefit payable to the Director under this Section 2.5 is an annual benefit in an amount equal to the projected annual benefit to be paid to the
Director at age 70, as set forth in Section 2.1.1 of this Agreement. 

  

	 	2.5.2.	 Payment of Benefit. The benefit payable under this Section 2.5 shall be paid to the Director in equal monthly 

  

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installments commencing with the month following the Director’s Normal Retirement Age, or at such later date as may otherwise be required by this
Agreement or by applicable law (including Code Section 409A). This annual benefit shall be paid to the Director for each of the ten (10) consecutive years next following the Director’s Normal Retirement Age, for a total of 120
consecutive equal monthly payments. 

  

	2.6	Restriction on Commencement of Distributions. Notwithstanding any provision of this Agreement to the contrary, if the Director is considered a “specified
employee”, within the meaning of Code Section 409A, the provisions of this Section 2.6 shall govern all distributions hereunder. If benefit distributions which would otherwise be made to the Director due to Termination of Service are
limited because the Director is a “specified employee”, then such distributions shall not be made during the first six (6) months following Termination of Service. Rather, any distribution which would otherwise be paid to the Director
during such period shall be accumulated and paid to the Director in a lump sum on the first day of the seventh month following Termination of Service. All subsequent distributions shall be paid in the manner specified. 

  

	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
Director becomes subject to tax on the amounts deferred hereunder, then the Bank may make a limited distribution to the Director in a manner that conforms to the requirements of Code Section 409A. Any such distribution will decrease the
Director’s benefits distributable under this Agreement. 

  

	2.8	Change in Form or Timing of Distributions. For distribution of benefits under this Article 2, the Director, the Holding Company and the Bank may, subject to the terms of
Section 7.1, amend this Agreement to delay the timing, or to change the form, of such distributions; provided however, that any such amendment (including the implementation of such amendment), and any delay in timing, or change in the form, of
such distributions thereunder, shall conform in all respects to the requirements of Code Section 409A. 

 Article 3 

 Death Benefits 
  

	3.1	Death During Active Service. If the Director dies while in the active service of the Bank and the Holding Company, the Bank shall pay to the 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 benefit under this Section 3.1 is the Pre-Retirement Death Benefit, an annual benefit in an amount equal to the projected annual benefit to be
paid to the Director at age 70, as set forth in Section 2.1.1 of this Agreement. 

  

	 	3.1.2	 Payment of Benefit. The Bank shall pay the Pre-Retirement Death Benefit, to the Beneficiary in equal monthly 

  

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installments, commencing with the month following the Director’s death. The Pre-Retirement Death Benefit shall be paid to the Beneficiary (as provided
under this Article 3 and Article 4) for a period of ten (10) consecutive twelve (12) month periods next following the death of the Director, for a total of 120 consecutive equal monthly payments. 

  

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

  

	3.3	Death After Termination of Service But Before Payment of a Benefit Commences. If the Director is entitled to any benefit payments under Article 2 of this
Agreement, but dies prior to the commencement of said benefit payments, the Bank shall pay the same benefit payments to the Beneficiary that the Director 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 Director’s death. 

  

	3.4	Death of a Beneficiary prior to Full Payment of Benefit. If a Beneficiary dies prior to receipt of the full benefits to be paid to the Beneficiary under this Agreement, the
remaining benefit payments, otherwise payable to the Beneficiary under the terms of this Agreement, shall be paid to the personal representative of the estate of the Beneficiary. The personal representative of the estate of the Beneficiary, and any
beneficiary to whom such benefits are paid by or from the Beneficiary’s estate, shall each be a “Beneficiary” for purposes of this Agreement. 

 Article 4 
 Beneficiaries 
  

	4.1	Beneficiary Designation. The Director shall have the right, at any time, to designate a Beneficiary(ies) to receive any benefits payable under this Agreement upon the death
of the Director. The Beneficiary designated under this Agreement may be the same as or different from the beneficiary designation under any other benefit plan of the Bank in which the Director participates. 

  

	4.2	Beneficiary Designation: Change. The Director shall designate a Beneficiary by completing and signing the Beneficiary Designation Form, and delivering it to the Plan
Administrator or its designated agent. The Director's Beneficiary designation shall be deemed automatically revoked if the Beneficiary predeceases the Director or if the Director names a spouse as Beneficiary and the marriage is subsequently
dissolved. The Director shall have the right to change a Beneficiary by completing, signing and otherwise complying with the terms of the Beneficiary Designation Form and the Plan Administrator’s rules and procedures, as in effect from time to
time. Upon 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 Director and accepted by the Plan Administrator prior to the Director’s death. 

  

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	4.3	Acknowledgment. Except as otherwise specifically provided in this Agreement, 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 Director dies without a valid beneficiary designation, or if all designated Beneficiaries predecease the Director, then the Director’s
spouse, if married to Director at the date of Director’s death, shall be the designated Beneficiary. If the Director has no spouse at the Director’s date of death, the benefits shall be made to the personal representative of the Director's
estate. The personal representative of the Director’s estate and any beneficiary to whom such benefits are paid by or from the Director’s estate, shall each be a “Beneficiary” for purposes of this Agreement.

  

	4.5	Facility of Payment. If the Plan Administrator determines in its discretion that a benefit is to be paid 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 payment 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 payment of a benefit shall be a payment for the account of the Director and the
Director’s Beneficiary, as the case may be, and shall be a complete discharge of any liability under the Agreement for such payment amount. 

 Article 5 
 General Limitations 
  

	5.1	Termination for Cause. Notwithstanding any provision of this Agreement to the contrary, the Bank shall not pay any benefit under this Agreement if the board of directors or
shareholders of either the Bank or the Holding company terminates the Director’s service for: 

  

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

  

	 	(b)	Commission of a felony or of a gross misdemeanor involving moral turpitude; 

  

	 	(c)	Fraud or willful violation of any law or significant policy of the Bank or Holding Company, committed in connection with the Director's service and resulting in a material adverse
effect on the Bank or Holding Company; or 

  

	 	(d)	Issuance of an order for removal of the Director by the banking regulators of the Bank or the Holding Company. 

  

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	5.2	Suicide or Misstatement. The Bank shall not pay any benefit under this Agreement if the Director commits suicide within two years after the Effective Date. In addition, the
Bank shall not pay any benefit under this Agreement if the Director has made any material misstatement of fact on any application for life insurance owned by the Bank on the Director’s life. 

  

	5.3	Competition After Termination of Service. The Bank shall not pay any benefit under this Agreement if the Director, without the prior written consent of the Bank or, if
earlier, within 1 year from the Director’s Termination of Service, engages in, directly or indirectly, as a sole proprietor, as a partner in a partnership, or as a holder of more than five percent (5%) of the voting shares in a
corporation, or becomes associated with, in the capacity of employee, director, officer, principal, agent or trustee, any enterprise conducted within a 25-mile radius of any office of the Bank existing at the time of the Director’s Termination
of Service, which enterprise is, or may deemed to be, competitive with the business of banking carried on by the Bank as of the date of the Director’s Termination of Service. This section shall not apply to a Termination of Service (other
than a Termination for Cause) following a Change of Control or to an Early Termination which was involuntary on the part of the Director. 

 Article 6 
 Claims And Review Procedures 
  

	6.1	Claims Procedure. A Director or Beneficiary (“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 Plan Administrator a written claim for the benefits. 

  

	 	6.1.2	Timing of Plan Administrator Response. The Plan Administrator shall respond to such claimant within 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 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 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 include: 

 (a) The specific reasons for the denial; 
  

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

 (c) A description of any additional information or material necessary for the claimant to perfect the claim and an explanation of why it
is needed; and 
 (d) A description of the applicable review procedures and the time limits applicable to such procedures. 
  

	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 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 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 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 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 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 include: 

 (a) The specific reasons for the denial;

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

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 (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 to the claimant’s claim for benefits. 
 Article 7 
 Amendments and Termination 
  

	7.1	Amendments. This Agreement may be amended only by a written agreement signed by the Bank, Holding Company and the Director. However, the Bank or Holding Company may
unilaterally amend this Agreement to conform with written directives to the Bank or Holding 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; Code Section 409A. This Agreement may be terminated only by a written agreement signed by the Bank, Holding Company and the Director. The
benefit shall be the Accrual Balance as of the date of the agreement of termination, or as otherwise provided in the agreement of termination; provided, however, that the amount, the form, and the timing, of any distribution to be made thereunder
shall comply, in all respects, with the provisions of Section 409A of the Code. 

 Article 8 
 Administration of Agreement 
  

	8.1	Plan Administrator Duties. This Agreement shall be administered by a Plan Administrator which shall consist of the Board, or such committee or person(s) as the Board shall
appoint. The Director may be a member of the Plan Administrator. The Plan Administrator shall also have the discretion and authority to (i) make, amend, interpret and enforce all appropriate rules and regulations for the administration of this
Agreement and (ii) decide or resolve any and all questions including interpretations of this Agreement, as may arise in connection with the Agreement. 

  

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

  

	8.3	Binding Effect of Decisions. The decision or action of the Plan Administrator with respect to any question arising out of or in connection with the administration,
interpretation and application of the Agreement and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in the Agreement. No Director or Beneficiary shall be deemed to have
any right, vested or nonvested, regarding the continued use of any previously adopted assumptions, including but not limited to the Discount Rate. 

  

	8.4	 Indemnity of Plan Administrator. The Bank shall indemnify and hold harmless the members of the Plan Administrator against 

  

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any and all claims, losses, damages, expenses or liabilities arising from any action or failure to act with respect to this Agreement, except in the case of
willful misconduct by the Plan Administrator or any of its members. 

  

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

  

	8.6	Annual Statement. The Plan Administrator shall provide to the Director, within 120 days after the end of each Plan Year, in the form of Schedule A of this Agreement, a
statement setting forth the benefits payable under this Agreement. It is hereby agreed that such annual statement, in the form of Schedule A, shall be incorporated into, and thereby shall be a part of, this Agreement.

 Article 9 
 Miscellaneous 
  

	9.1	Binding Effect. This Agreement shall bind the Director, the Holding Company and the Bank, and their beneficiaries, survivors, executors, successors, administrators and
transferees. 

  

	9.2	No Guarantee of Service. This Agreement is not a policy or contract regarding the continued service of the Director, as a director of the Bank and/or the Holding Company. It
does not give the Director the right to remain as an employee or director of the Bank or the Holding Company, nor does it interfere with the right of the Bank or the Holding Company, or their respective shareholders, to remove the Director from
office. It also does not require the Director to remain a director of the Bank or Holding Company nor interfere with the Director's right to terminate service with the Bank or Holding Company 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. The Bank shall withhold any taxes that, in its reasonable judgment, are required to be withheld from the benefits provided under this Agreement. The Director
acknowledges that the Bank’s sole liability regarding taxes is to forward any amounts withheld to the appropriate taxing authority(ies). 

  

	9.5	Applicable Law. The Agreement and all rights hereunder shall be governed by the laws of the State of Georgia, except to the extent preempted by the laws of the United States
of America. Further, the parties intend for this Agreement, including the payment of benefits hereunder, to comply with the provisions of Section 409A of the Internal Revenue Code of 1986, as said Section may be amended from time to time, and,
therefore, hereby agree that the provisions of this Agreement and the benefits payable hereunder shall be, and hereby are, modified, but only to the extent necessary, to achieve compliance therewith. 

  

 13 

 Appalachian Community Bank 
 Salary Continuation Agreement 
  
  

	9.6	Unfunded Arrangement. The Director and Beneficiary (and any other parties with rights under this Agreement) are general unsecured creditors of the Bank for the payment of
benefits under this Agreement. The benefits represent the mere promise by the Bank to pay 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 Director's life is a general asset of the Bank to which the Director and Beneficiary have no preferred or secured claim. 

  

	9.7	Merger or Reorganization. Neither the Bank nor the Holding Company shall merge or consolidate with, or reorganize into, another company or bank, or sell substantially
all of its assets to another company or bank, firm, or person, unless such succeeding or continuing company, bank, firm, or person agrees to assume and discharge the obligations of the Bank and Holding Company under this Agreement. Upon the
occurrence of such event, the terms “Bank” and “Holding Company”, as used in this Agreement, shall also be deemed to refer to the successor or survivor company or bank. 

  

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

  

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

  

	9.10	Alternative Action. In the event it shall become impossible for the Bank, the Holding Company or the Plan Administrator to perform any act required by this Agreement, the
Bank, the Holding Company or Plan Administrator may in its discretion perform such alternative act as most nearly carries out the intent and purpose of this Agreement and is in the best interests of the Bank. 

  

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

  

	9.12	Validity. In case 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 and invalid provision has never been inserted herein. 

  

 14 

 Appalachian Community Bank 
 Salary Continuation Agreement 
  
  

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

  

					
		 	Appalachian Community Bank	 	
		 	829 Industrial Blvd.	 	
		 	Ellijay, Georgia 30540	 	

 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 Director under this Agreement shall be sufficient if in writing and hand-delivered, or sent by mail, to the last known address of the Director. 
  

	9.14	409A Gross-Up. If it is determined that any benefit provided under this Agreement would be subject to accelerated income taxation under Section 409A of the Code, or to
related penalties (the present value of such income tax acceleration (based on the time value of money), together with any such penalties, being collectively referred to herein s as the “excise tax”), then the Director shall be entitled to
receive any additional payment, determined by the Bank’s outside accounting firm, equal to such excise tax, including any excise tax on such additional payments. Payments under this Section 9.14 shall be due not later than thirty
(30) days following the date the Director’s tax liability becomes due, or as soon as administratively practicable thereafter. 

 IN WITNESS WHEREOF, the Director and a duly authorized representative of each of the Bank and Holding Company have signed this Agreement on this      day of
            , 20    . 
  

			
	“DIRECTOR:”
	
	  

	NAME:
	
	“BANK:”
	
	Appalachian Community Bank
		
	By:	 	  

	Title:	 	  

  

 15 

 Appalachian Community Bank 
 Salary Continuation Agreement 
  
  

			
	“HOLDING COMPANY:”
	
	Appalachian Bancshares, Inc.
		
	By:	 	  

	Title:	 	  

 Appalachian Community Bank 
 Salary Continuation Agreement 
 BENEFICIARY DESIGNATION FORM 
  
 I designate the following as beneficiary of benefits under the
Agreement payable following my death: 
  

			
	Primary:	 	  

	
	  

		
	Contingent:	 	  

	
	  

  

	Note:	To name a trust as beneficiary, please provide the name of the trustee(s) and the exact name and date of the trust agreement. 

 I understand that I may change these beneficiary designations by delivering a new written designation to the Plan Administrator. 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:	 		 	  
	  		  		 		  		  	
								
	Signature:	 		 	  
	  		  	Date:	 	  
	  		  	
		 		 		  		  		 		  		  	
	 
	SPOUSAL CONSENT (Required if Spouse not named
beneficiary):
	 
	I consent to the beneficiary designation above, and acknowledge that if I
am named beneficiary and our marriage is subsequently dissolved, the designation will be automatically revoked.
	 							 
	Spouse Name:	 		 	  
	  		  		 		  		  	 
	 							 
	Signature:	 		 	  
	  		  	Date:	 	  
	  		  	 
	 	 	 	 	 	  	 	  	 	 	 	  	 	  	 

 Received by the Plan Administrator this      day of
            , 20    . 
  

			
	By:	 	  

	Title:	 	  

 Appalachian Community Bank 
 Salary Continuation Agreement 
  
 For                      
 SCHEDULE A 
 (For the Plan year Ending May 30, 20    ) 
  

									
	Director Name	 	 	 		 	Plan Anniversary Date	 	06/01
	 Normal Retirement
 Age
	 	*	 		 	 Normal Retirement Date
 (Estimated)
	 	 

  

																					
	 Discount Rate
	  	Plan Year
Ending	  	Accrual
Balance	  	Normal
Retirement
Benefit
(annual
benefit
amount)	  	Early
Termination
Benefit
(one-time,
lump-sum
benefit
amount)	  	**
Disability
Benefit

(annual
benefit
amount)	  	**
Change of
Control
Benefit
(annual
benefit
amount)	  	**
Pre-
retirement
Death
Benefit
(annual
benefit
amount)
	 7%
	  	 	  	$	 	  	$	 	  	$	 	  	$	 	  	$	 	  	$	 

 The parties to this Salary Continuation Agreement hereby further agree that this Schedule A shall be
updated annually to include any changes in the Accrual Balance and the various benefit levels described hereon. Further, this Schedule A, as it now exists and as it may be further updated, is and shall continue to be a part of this Salary
Continuation Agreement. 
  

	*	The earlier of Age 70 or the date on which a Director completes 20 years of service as a director of the Bank and/or the Holding Company. 

	**	This annual benefit amount to be entered here for the Director is the projected annual benefit amount set forth in Section 2.1.1 of the Agreement.

 Appalachian Community Bank 
 Summary of Salary Continuation Agreement 
 Benefits 
 (Amounts As of Plan Year Ending May 31, 2008) 
  

																		
	 Directors of Appalachian Community Bank
	  	Accrual
Balance	  	Projected
Retirement Date
(Age 70)	  	Projected
Annual
Benefit at
Retirement
(Age 70)(1)	  	Early
Termination
Benefit(2)	  	Change of
Control
Benefit(3)	  	Pre
Retirement
Death
Benefit(4)
	 Dover, Alan S.
	  	$	31,464	  	06/02/2026	  	$	34,490	  	$	31,464	  	$	34,490	  	$	34,490
							
	 Edmondson, Charles A.
	  	 	35,831	  	06/02/2018	  	 	27,227	  	 	35,831	  	 	27,227	  	 	27,227
							
	 Futch, Roger E.
	  	 	38,390	  	06/02/2015	  	 	24,916	  	 	38,390	  	 	24,916	  	 	24,916
							
	 Hensley, Joseph C.
	  	 	31,236	  	06/02/2027	  	 	35,525	  	 	31,236	  	 	35,525	  	 	35,525
							
	 Jones, Frank E.
	  	 	32,833	  	06/02/2022	  	 	30,644	  	 	32,833	  	 	30,644	  	 	30,644
							
	 Knight, Ronald
	  	 	59,274	  	06/02/2012	  	 	22,802	  	 	59,274	  	 	22,802	  	 	22,802
							
	 Newton, Tracy R.
	  	 	31,611	  	06/02/2026	  	 	34,490	  	 	31,611	  	 	34,490	  	 	34,490
							
	 Warren, Kenneth D.
	  	 	34,398	  	06/02/2020	  	 	28,885	  	 	34,398	  	 	28,885	  	 	28,885

 Notes: 
  

	(1)	Annual benefit increased 3% from the previous plan year, until Age 70 

	(2)	Benefit determined by vesting the Director in 100% of the Accrual Balance 

	(3)	Benefit determined by vesting the Director in 100% of the Benefit Level 

	(4)	Benefit determined by vesting the Director in 100% of the Benefit LevelEmployment Agreement

 Exhibit 10.1 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made the 14
day of April, 2008 (the “Effective Date”), by and between MAP PHARMACEUTICALS, INC., a Delaware corporation (“MAP”), and Thomas A. Armer, Ph.D, an individual resident of California (the
“Executive”). Capitalized terms not otherwise defined in this Agreement shall have the meanings given in Appendix A to this Agreement. 
 RECITALS: 
 WHEREAS, the Executive is currently employed by MAP pursuant to the terms of that certain
Employment Agreement between MAP and the Executive dated August 12, 2004 (the “Current Agreement”); 
 WHEREAS, MAP
desires to secure the Executive’s continued employment with MAP on the terms and conditions hereinafter set forth; 
 WHEREAS, the
Executive desires to continue his employment on the terms and conditions hereinafter set forth. 
 NOW, THEREFORE, in consideration of the
Executive’s continued employment by MAP and the mutual covenants and agreements hereinafter set forth, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows:

 1. Employment. 
 (a) The Current Agreement is hereby terminated and superseded by this Agreement by mutual consent of MAP and the Executive; provided, however, that Sections 6 and 9 thereof shall survive such termination as contemplated by the
Current Agreement. 
 (b) MAP shall employ the Executive, and the Executive shall serve as Chief Scientific Officer of MAP,
and any other position agreed upon by the parties, subject to the terms and conditions set forth in this Agreement. The Executive shall devote all of his business time, attention, skill and efforts to the performance of his duties under this
Agreement, provided that the Executive may devote reasonable periods of time to charitable and community activities that do not materially interfere with the performance of his duties hereunder and are not in conflict or competitive with, or
adverse to, the interests of MAP. 
 2. Term. The term of this Agreement, and the Executive’s employment under the terms of this
Agreement, shall commence on the Effective Date and continue through July 31, 2009 (the “Initial Term”). This Agreement shall automatically renew for successive periods of one year (each, a “Renewal Term”) upon
expiration of the Initial Term and each subsequent term, unless either party provides written notice of termination at least three months prior to the end of the then applicable term. (The Initial Term and each Renewal Term are sometimes hereafter
collectively referred to as the “Term.”) This Agreement may be terminated prior to the expiration of the Term as provided in Section 4 and is subject to the ongoing post-employment rights and obligations and benefits, if
applicable, due to the circumstance of such termination, contained in Sections 4, 6, 7, 8 and 9. 

 3. Compensation and Benefits. 
 (a) Base Salary and Bonus. The Executive shall receive a base salary at the rate of $325,000 per annum, commencing on the Effective
Date (the “Base Salary”). The Base Salary shall be paid at least monthly in accordance with MAP’s regular payroll practices. During the Term, the Executive shall be entitled to participate in MAP’s incentive bonus plan
applicable to senior executives at the discretion of the Board of Directors of MAP (the “Board”). 
 (b)
Health and Retirement Benefits. The Executive shall be entitled to participate in all employee health and retirement benefit plans maintained by MAP, including, without limitation, any medical, dental, disability and life insurance coverage
and retirement benefits maintained by MAP (“MAP Benefit Plans”), subject to any and all terms, conditions and eligibility requirements of said benefits or plans, as may be in effect from time to time. 
 (c) Equity Incentive. The parties agree that the Executive shall be eligible, at the sole discretion of the Board or its
Compensation Committee, to receive grants of restricted stock or options to acquire shares of common stock of MAP subject to the terms of the MAP Pharmaceuticals, Inc. 2007 Equity Award Plan, as amended. 
 (d) Vacation and Holidays. The Executive shall be entitled to three (3) weeks of paid vacation per year, provided that
the Executive shall take vacation at such times as may be mutually agreed upon by MAP and the Executive. Additionally, the Executive shall be entitled to a minimum of nine (9) days of paid holiday leave as determined by MAP in accordance with
its regular practices. 
 (e) Expense Reimbursement. MAP shall reimburse the Executive for all reasonable out-of-pocket
expenses incurred by the Executive in the performance of his duties under this Agreement. The Executive shall provide MAP with receipts or other records substantiating such expenses as may be reasonably requested by MAP. 
 (f) Deductions and Withholdings. All amounts payable hereunder shall by subject to deduction and withholding as required by law.

 4. Termination. Both MAP and the Executive shall have the right to terminate the Executive’s employment with MAP at any time,
with or without cause, and without prior notice. If the Executive’s employment with MAP is terminated, the Executive will be eligible to receive severance benefits to the extent provided in this Agreement and described more specifically below.

 (a) Additionally, the Executive’s employment may be terminated by MAP (and in the case of clause (i) below, will
be automatically terminated) at any time as follows: 
 (i) upon the death of the Executive at any time; 

 (ii) due to the Disability of the Executive upon delivery of a Notice of Termination to
the Executive at any time; 
 (iii) for Cause upon delivery of a Notice of Termination to the Executive at any time; or

 (iv) other than due to death, Disability or for Cause, thirty (30) days after delivery of a Notice of Termination to
the Executive. 
 (b) Additionally, the Executive may terminate his employment by MAP at any time as follows: 
 (i) thirty (30) days after the Executive delivers a Notice of Termination to MAP if MAP materially breaches this Agreement and does
not cure the breach within such thirty-day period; 
 (ii) ninety (90) days after the Executive delivers a Notice of
Termination for any reason (other than a material breach of this Agreement by MAP or for Good Reason); or 
 (iii) for
“Good Reason.” 
 (c) If the Executive’s employment is terminated (i) by reason of the
Executive’s death, (ii) due to the Executive’s Disability, (iii) for Cause, or (iv) by the Executive for any reason other than a material breach of this Agreement by MAP or the reasons described in 4(b)(iii) above, the
Executive shall have no right to receive any payments or benefits from MAP after the Termination Date, except for (x) the amount of any Accrued Compensation, and (y) payments or benefits payable pursuant to other agreements, the MAP
Benefit Plans, and other plans or programs maintained by MAP, in each case to the extent provided by the terms of such plans and programs in effect immediately prior to the Termination Date. 
 (d) If the Executive’s employment is terminated pursuant to a “separation
from service” as defined in Section 409A (a)(2)(A)(1) of the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations promulgated thereunder (A) by MAP or any successor corporation at any time
pursuant to Section 4(a)(iv) or (B) by the Executive pursuant to Sections 4(b)(i) or (iii), the Executive, while living and in lieu of any other rights, payments or benefits arising out of the Executive’s employment by MAP, shall be
entitled to receive: (i) the amount of any Accrued Compensation, (ii) a lump sum amount equal to the greater of: (x) one (1) year’s Base Salary at the rate in effect immediately preceding the Termination Date or
(y) twelve (12) times the average monthly salary received during the twelve (12) months preceding the Termination Date, payable on the 60th day following the Termination Date, (iii) shall be entitled to receive any incentive compensation to the extent payable under the terms of any bonus or incentive plans in effect immediately prior to the Termination Date, with any such
amounts payable in a lump sum on the 60th day following the Termination Date, and (iv) if Executive elects to continue his health insurance
coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) following termination, then MAP shall pay Executive’s monthly COBRA premium for continued health insurance coverage for Executive and
Executive’s eligible dependents for up to twelve (12) months following the Termination Date. 

 (e) Upon the Termination Date, in the event the termination of the Executive occurred due
to Sections 4(a)(iv), 4(b)(i) or 4(b)(iii), for a period of up to six months as may be requested by the Board (the “Consulting Period”), MAP shall retain the Executive as a consultant and the Executive shall be available to render
such advisory or consulting services in relation to MAP as MAP may reasonably request from time to time, in an amount not to exceed ten (10) hours per month or 20% of the services rendered, on average, during the three full calendar years
immediately preceding the Termination Date, whichever is less. In consideration for such consulting, the Executive shall receive the severance benefits described in 4(d), above (and at the time described above). 
 (f) Except as otherwise modified by a written agreement between MAP and the Executive, the severance pay and benefits provided for in this
Section 4 shall be in lieu of any other severance pay or benefits which the Executive may be entitled to receive under any severance or termination plan, program, practice or arrangement maintained by MAP. Payment of any compensation and
benefits in accordance with this Section 4 shall be subject to the Executive’s continued compliance with Sections 6, 7, 8, and 9 and Executive signing within 50 days following the Termination Date, and not subsequently revoking, a
separation agreement and release of claims in a form acceptable to MAP in which the Executive or his personal representative agrees to waive any and all claims against MAP except claims for payments and benefits to be received pursuant to Sections
4(c), (d) or (e) of this Agreement, as applicable. Notwithstanding any provision of this Agreement, in the event that any payment or benefit (within the meaning of Section 280G(b)(2) of the Code) to the Executive (or for his benefit)
paid or payable pursuant to Section 4(d) above would result in an excise tax under Section 4999 of the Code or would not be deductible (in whole or in part) as a result of Section 280G of the Code (or any successor provision), then
the amount payable to the Executive under Section 4(d) above shall be payable either: 
 (i) in full, or 
 (ii) as to such lesser amount which would result in no portion of such benefits being subject to excise tax under Section 4999 of the
Code, 
 whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the
excise tax imposed by Section 4999, results in the receipt by Executive on an after-tax basis, of the greatest amount of benefits under this Agreement, notwithstanding that all or some portion of such benefits may be subject to the excise tax
imposed under Section 4999 of the Code. Unless MAP and the Executive otherwise agree in writing, the determination as to whether any payment or benefit hereunder will be nondeductible as a result of Section 280G of the Code shall be made
by MAP’s independent auditors. 
 (g) Notwithstanding the forgoing, however, to the extent required to comply with
Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), if Executive is deemed by MAP to be a “specified employee” for purposes of Section 409A(a)(2)(B) of the 

 
Code, Executive agrees that the payments due to Executive under Section 4 of this Agreement in connection with a “separation from service” as
defined in Section 409A (a)(2)(A)(1) of the Code that would otherwise have been payable at any time during the six-month period immediately following such separation from service shall not be paid prior to, and shall instead be payable in a
lump sum as soon as practicable following, the expiration of such six-month period. In the event of death during such six-month period, upon provision to MAP of a signed general release of all claims against MAP and its affiliates in a form
acceptable to MAP, Executive’s estate will receive the severance benefits described in this Section. 
 5. Acknowledgements by the
Executive. The Executive acknowledges that, (a) prior to the date of this Agreement he has received and had access to, and after the date of this Agreement he will continue to receive from MAP and have access at MAP to, Confidential
Information in connection with his employment by MAP; (b) all Confidential Information known or obtained by the Executive, whether before or after the date of this Agreement, is the property of MAP; (c) the business of MAP is international
in scope; (d) MAP’s products and services are marketed throughout the world; (e) MAP competes with businesses that are or could be located throughout the world, (f) the provisions of Sections 6, 7, 8, and 9 are reasonable and
necessary to protect and preserve MAP’s business; (g) MAP would be irreparably damaged if the Executive were to breach the covenants set forth in Sections 6, 7, 8, or 9; and (h) the parties have entered into this Agreement in good
faith and for the reasons set forth in the recitals hereto and assume that this Agreement is legally binding. 
 6. Nondisclosure of
Confidential Information. During the Term or at any time thereafter, the Executive agrees that he will not disclose, furnish or make accessible to any entity or person, other than MAP or its affiliates or representatives, any Confidential
Information, or in any way use any Confidential Information in the conduct of any business without the prior written consent of MAP. Nothing contained in this Agreement shall be deemed a waiver, modification or limitation of any rights MAP or its
affiliates may have under applicable foreign, federal, state or local laws pertaining to the protection of trade secrets or confidential information. The Executive will promptly return all Confidential Information to MAP upon the termination of the
Executive’s employment for whatever reason. 
 7. Noncompetition. During the Term and the Consulting Period, if applicable, the
Executive agrees that he will not directly or indirectly, engage or invest in, own, manage, operate, finance, control or participate in the ownership, management, operation, financing or control of, be employed by, associated with, or in any manner
connected with, lend his name or credit to, or render services or advice to, any business the products or activities of which directly compete, in whole or in part, with the products or activities of MAP in any state or country in the world.
Notwithstanding the foregoing, the Executive may purchase or otherwise acquire up to (but not more than) one percent (1%) of any class of securities of any enterprise (but without otherwise participating in the activities of such enterprise) if
such securities are listed on any national or regional securities exchange or have been registered under Section 12(g) of the Securities Exchange Act of 1934 (the “Exchange Act”). 

 8. Nonsolicitation. During the Term and the Consulting Period, if applicable, the Executive will
not: 
 (a) directly or indirectly, for himself or any other person or entity (i) induce or attempt to induce any
employee of MAP to leave the employ of MAP, (ii) in any way interfere with the relationship between MAP and any employee of MAP; or (iii) induce or attempt to induce any customer, supplier, licensee, or business relation of MAP to cease
doing business with MAP, or in any way interfere with the relationship between any customer, supplier, licensee or business relation of MAP; or 
 (b) directly or indirectly, either for himself or any other person or entity, solicit the business of any person or entity known to the Executive to be a customer of MAP whether or not the Executive had personal
contact with such person or entity, with respect to the products or activities which compete in whole or in part with the products or activities of MAP. 
 9. Assignment of Intellectual Property. To the extent that the Executive has not already done so pursuant to the Current Agreement and except to the extent prohibited by agreements with employers prior to MAP
Pharmaceuticals, Inc., the Executive hereby assigns all of the Intellectual Property conceived, designed, devised, developed, perfected or made by the Executive prior to the Effective Date. Any Intellectual Property designed, devised, developed,
perfected or made by the Executive after the date of this Agreement shall be promptly disclosed to MAP by the Executive and become the property of MAP, and the Executive hereby assigns, transfers and conveys such Intellectual Property to MAP. The
Executive further agrees to make and provide to MAP, at MAP’s expense, any documents, instruments or other materials necessary or convenient to vest, secure, evidence or maintain MAP’s ownership of the Intellectual Property, and patents,
copyrights, trademarks and similar foreign and domestic property rights with respect to the Intellectual Property. Any Intellectual Property conceived, designed, devised, developed, perfected or made by the Executive within one (1) year after
termination of the Executive’s employment with MAP shall be conclusively presumed to have been conceived during the Executive’s employment with MAP, and the burden of proving otherwise shall rest with the Executive. 
 10. Survival of Covenants. The covenants by the Executive in Sections 6, 7, 8 and 9 are essential elements of this Agreement. If the
Executive’s employment with MAP expires or is terminated, this Agreement will continue in full force and effect as is necessary or appropriate for MAP to enforce any of the covenants in Sections 6, 7, 8, or 9, and for Executive to enforce any
of the covenants in Section 4(d). 
 11. Enforcement and Arbitration. 
 (a) Within ten (10) days of MAP’s request, the Executive will confirm to MAP in writing the Executive’s compliance with
Sections 6, 7, 8 or 9 during the period which such covenants remain in force. 
 (b) Unless otherwise prohibited by law or
specified below, all disputes, claims and causes of action, in law or equity, arising from or relating to this Agreement or its enforcement, performance, breach, or interpretation shall be resolved solely and exclusively by final and binding
arbitration held in Santa Clara County, California through Judicial Arbitration & Mediation Services/Endispute (“JAMS”) under the then existing JAMS arbitration rules. However, nothing in this section is intended to prevent
either party from obtaining injunctive 

 
relief in court to prevent irreparable harm pending the conclusion of any such arbitration. MAP shall pay all administrative fees, and the fees and expenses
of the arbitrator, to the extent that such fees and expenses exceed the amount that the Executive would have incurred to file a claim in court. Each party in any such arbitration shall be responsible for its own attorneys’ fees, costs and
necessary disbursement; provided, however, that the arbitrator shall have authority to award fees and costs to the prevailing party, in accordance with applicable law and if one party refuses to arbitrate and the other party seeks to
compel arbitration by court order, if such other party prevails, it shall be entitled to recover reasonable attorneys’ fees, costs and necessary disbursements. Pursuant to California Civil Code Section 1717, each party warrants that it was
represented by counsel in the negotiation and execution of this Agreement, including the attorneys’ fees provision herein. If either party hereto brings any action to enforce rights hereunder, each party in any such action shall be responsible
for its own attorneys’ fees and costs incurred in connection with such action. 
 12. Authority; No Conflict. This Agreement
constitutes the legal, valid and binding obligation of the Executive, enforceable against the Executive in accordance with its terms. The Executive has the unrestricted right, authority and capacity to execute and deliver this Agreement and to
perform his obligations under this Agreement. The Executive’s execution and delivery of this Agreement will not result in a violation or breach of any provision or, or give any person the right to declare a default or exercise any remedy under
any contract applicable to the Executive. The Executive is not required to give any notice or to obtain any consent from any person in connection with the Executive’s execution and delivery of this Agreement. 
 13. Notices. All notices, consents, waivers and other communications under this Agreement must be sent in writing and will be deemed to have been
duly given when (a) delivered by hand, (b) sent by facsimile (with written evidence of receipt), provided that a copy is mailed by registered mail, return receipt requested, or (c) when received by the addressee, if sent by a
nationally recognized delivery service, in each case to the respective addresses last given by each party to the other, provided that all notices to MAP shall be directed to the attention of the board of directors of MAP, with a copy to the
Secretary of MAP. 
 14. Successors and Assigns. This Agreement shall be binding and inure to the benefit of the parties hereto and
their respective successors and assigns; provided that the Executive shall be prohibited from assigning any of the Executive’s rights, title or interest in this Agreement. 
 15. Amendment; Waiver. No change or modification of this Agreement shall be valid or binding unless in writing and signed by both parties. No
waiver of any provision of this Agreement shall be valid unless in writing and signed by the party against whom the waiver is sought to be enforced. A valid waiver of any provision of this Agreement shall be limited to the instance specified in such
writing and, unless otherwise expressly stated, shall not be effective as a continuing waiver or repeal of such provision. 
 16.
Governing Law. The validity, performance, construction and effect of this Agreement shall be governed by the substantive laws of the State of California, without regard to the provisions for choice of law thereunder. 

 17. Severability. In the event any provision or portion of this Agreement is held to be illegal,
invalid or unenforceable, in whole or in part, for any reason, under present or future law, such provision shall be severable and the remainder thereof shall not be invalidated or rendered unenforceable or otherwise adversely affected. Without
limiting the generality of the foregoing, if a court of competent jurisdiction should deem any provision of this Agreement to create a restriction that is unreasonable at to its scope, duration or geographical area, the parties agree that the
provisions of this Agreement shall be enforceable in such scope, for such duration and in such geographic area as any court of competent jurisdiction may determine to be reasonable. 
 18. Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes
all representations, understandings, undertakings or agreements (whether oral or written and whether expressed or implied) of the parties with respect to severance and benefits payable to Executive following a termination of his employment other
than a termination within the 12 month period following a Change in Control, as defined in that certain Change in Control Agreement by and between MAP and the Executive dated September 12, 2007 (the “Change in Control
Agreement”). In the event of a termination of Executive’s employment within the 12 month period following a Change in Control, severance and benefits shall be payable pursuant to the Change in Control Agreement. No provisions of the
Change in Control Agreement are superseded by this Agreement, and the Change in Control Agreement shall otherwise remain in full force and effect. 
 19. Negotiated Agreement. The Executive acknowledges that he was represented by experienced counsel in connection with the negotiation of this Agreement, and the parties agree that this Agreement shall be construed as drafted by both
of them, as parties of equivalent bargaining power, and not for or against either of them as the drafter. 
 20. Claims by the
Executive. The existence of any claim or cause of action by the Executive against MAP shall not constitute a defense to the enforcement by MAP of the Executive’s covenants, obligations or undertakings in this Agreement, including, without
limitation, the covenants in Sections 6, 7, 8 and 9. 
 21. Headings. The headings of sections herein are included solely for
convenience of reference and shall not control the meaning or interpretation or any of the provisions of this Agreement. All Section references herein are to Sections of this Agreement unless otherwise specified. 
 22. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together
will constitute one and the same instrument. 
 23. Section 409A. The parties acknowledge and agree that, to the extent
applicable, this Agreement shall be interpreted in accordance with, and the parties agree to use their best efforts to achieve timely compliance with, Section 409A of the Code, and the Department of Treasury Regulations and other interpretive
guidance issued thereunder, including, without limitation, any such regulations or other guidance that may be issued after the Effective Date. Notwithstanding any provision of this Agreement to the contrary, in the event that MAP determines that any
amounts payable hereunder would otherwise be taxable to Executive under 

 
Section 409A, MAP may adopt such limited amendments to this Agreement and appropriate policies and procedures, including amendments and policies with
retroactive effect, that MAP reasonably determines are necessary or appropriate to comply with the requirements of Section 409A and thereby avoid the application of penalty taxes under such Section. 
 [Signatures on the following page] 

 IN WITNESS WHEREOF, the Executive has executed, and MAP has caused this Agreement to be executed by its
duly authorized officer, as of the date first above written. 
  

			
	MAP PHARMACEUTICALS, INC.
		
	By:	 	/s/ Timothy S. Nelson
	Name:	 	Timothy S. Nelson
	Its: 	 	President and CEO
	
	EXECUTIVE
	
	/s/ Thomas A. Armer
	Thomas A. Armer, Ph.D

 APPENDIX A 
 DEFINITIONS 
 “Accrued Compensation” shall mean an amount which shall include all
amounts earned or accrued through the Termination Date but not paid as of the Termination Date, including, without limitation, (i) Base Salary, and (ii) reimbursement for reasonable expenses incurred by the Executive on MAP’s behalf
prior to the Termination Date. 
 “Cause” shall mean any one of the following events: (i) the Executive’s
violation, provided the Executive has received written notice from MAP and been given thirty (30) days in which to cure such failure (if curable), of any material provision of this Agreement or the Change in Control Agreement by and between MAP
and the Executive dated September 12, 2007, including, without limitation, the Executive’s continuing failure (after reasonable notice) to follow the reasonable written instructions of MAP’s Chief Executive Officer, the Board or a
committee thereof; (ii) any intentional or grossly negligent act or omission by the Executive that is reasonably likely to lead to the material injury of MAP or its business, employees, customers or vendors, provided the Executive has received
written notice from MAP and been given thirty (30) days in which to cure such act or omission (provided that such act or omission is curable); (iii) the Executive’s material violation of any federal, state or local law applicable to
MAP or its business, as initially determined by a court (for avoidance of doubt, a conviction of a material violation of any federal, state or local law applicable to MAP or its business which is subsequently overturned by an appellate court shall
remain Cause for termination); (iv) the Executive’s plea of guilty or nolo contendere to, or conviction of, a felony or of a misdemeanor involving moral turpitude; or (v) the Executive’s failure to comply in any material
respect with, provided the Executive has received written notice from MAP and been given thirty (30) days in which to cure such failure (if curable), the written employee policies and procedures of MAP. 
 “Confidential Information” shall mean, whether embodied in written, electronic, digital or other form, (i) information regarding
MAP customers and suppliers, including but not limited to, customer lists, price lists, market studies, contracts, information, requirements, billing histories, marketing methods, names of contacts, and products or services provided by MAP to such
customers or suppliers; (ii) financial information concerning MAP or its affiliates, including but not limited to, financial statements, balance sheets, profit and loss statements, earnings, commissions and salaries paid to employees, sales
data and projections, cost analyses and similar information; (iii) plans and projections for business opportunities for new or developing business of MAP or its affiliates; (iv) information relating to the trade secrets, product
specifications, know-how, formulae, compositions, processes, designs, inventions, ideas, improvements, and computer software and database technologies of MAP; and (v) any notes, analyses, compilations, studies, summaries or other material
prepared by or for MAP containing or based, in whole or in part, on any information included in the foregoing. In no event will “Confidential Information” include (x) information that is or becomes generally known to and available for
use by the public other than as a result of the Executive’s fault or the fault of any other person or entity bound by a duty of confidentiality to MAP, or (y) information that is required by law to be disclosed by the Executive,
provided that no disclosure shall be made until the Executive has given reasonable written notice to MAP of the anticipated disclosure so that MAP may contest the need for disclosure, and the Executive will cooperate with MAP in connection
with any such contest. 

 “Disability” shall mean a determination that the Executive is unable to substantially
perform the duties and responsibilities contemplated by this Agreement as a result of physical or mental incapacity, which inability continues for a period of 180 consecutive days, as determined by the board of directors of MAP in good faith after
receiving certification or other substantiation of such incapacity from a medical doctor selected by the board of directors. 
 “Good
Reason” shall mean the Executive’s voluntary termination, following (a) a reduction by MAP of Executive’s annual base salary except to the extent the annual base salary of all other executives of MAP are similarly reduced;
(b) the taking of any action by MAP that would adversely affect Executive’s participation in, or reduce Executive’s benefits under, MAP’s benefit plans (including under any equity compensation plan), except to the extent the
benefits of all other executives of MAP are similarly reduced; (c) a breach by MAP of any material provision of this Agreement, which breach remains uncured following 30 days after the Executive provides MAP with written notice of the breach;
(d) the assignment to Executive of any duties or responsibilities that result in any diminution or adverse change of Executive’s position, status, circumstances of employment or scope of responsibilities; provided, however, that if
following any reorganization, merger, change in control, or other similar transaction, MAP becomes a division of, or a business unit of another corporation or other business entity and the Executive remains the Chief Scientific Officer of the
division or business unit comprised of MAP, such changes of the Executive’s responsibilities of employment which would reflect these circumstances shall not be deemed to be a material diminution which would give rise, in and of itself, to Good
Reason; or (d) Executive’s refusal to relocate to a location more than twenty-five (25) miles from MAP’s location at the Effective Date 
 “Intellectual Property” means any or all of the following (including all rights arising out of or associated therewith) which are conceived, designed, devised, developed, perfected or made by the
Executive, whether alone or in conjunction with others, and related in any manner to the actual or anticipated business or research and development of MAP or its affiliates: (i) United States, international or foreign patents and applications
therefore, (ii) inventions (whether or not patentable), invention disclosures, improvements, trade secrets, proprietary information, know-how, technology, technical data and customer lists, product formulations and specifications, and all
documentation relating to any of the foregoing throughout the world, (iii) writings, books, works of authorship, copyrights, copyright registrations and applications therefore, and all other rights corresponding thereto throughout the world;
(iv) rights in internet uniform resource locators (URLs), domain names, trade names, logos, slogans, designs, common law trademarks and service marks, trademark and service mark applications and registrations therefore throughout the world;
(v) all databases and data collections and all rights therein throughout the world; and (vi) any similar or equivalent rights to any of the foregoing throughout the world. The term “Intellectual Property” shall be given the
broadest interpretation possible and shall include any Intellectual Property conceived, designed, devised, developed, perfected or made by the Executive during off-duty hours and away from any premises of MAP and during the regular course of the
Executive’s duties as an employee of MAP. 
 “Notice of Termination” shall mean a written notice of termination
provided by one party to the other which specifies an effective date of termination, indicates the specific termination provision in this Agreement relied upon and sets forth in reasonable detail the facts and circumstances claims to provide a basis
for termination of the Executive’s employment under the provision indicated. 

 “Termination Date” shall mean the date on which the Executive’s employment
terminates. In the case of the Executive’s death, the Termination Date shall be the date of the Executive’s death, and in all other cases, the date specified in the Notice of Termination, in accordance with this Agreement.

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