Document:

EX-10.9 FORM OF SUPPLEMENTAL EXEC. RETIREMENT PLAN

Exhibit 10.9

FORM OF

ATHENS FEDERAL COMMUNITY BANK

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN AGREEMENT

     THIS SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN AGREEMENT (the “Agreement”) is amended and
restated this [date], by and between Athens Federal Community Bank, a savings association located
in Athens, Tennessee (the “Bank”), and Jeffrey L. Cunningham (the “Executive”).

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

Article 1

Definitions

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

	1.1	 	“Account Value” means the amount shown on Schedule A under the heading Account Value.
The parties expressly acknowledge that the Account Value may be different than the liability
that should be accrued by the Bank, under U.S. Generally Accepted Accounting Principles
(“GAAP”), for the Bank’s obligation to the Executive under this Agreement. The Account Value
on any date other than the end of a Plan Year shall be determined by adding the prorated
increase attributable for the current Plan Year to the Account Value for the previous Plan
Year.
	 
	1.2	 	“Beneficiary” means each designated person or entity, or the estate of the Executive,
entitled to any benefits upon the death of the Executive pursuant to Article 4.
	 
	1.3	 	“Beneficiary Designation Form” means the form established from time to time by the
Plan Administrator that the Executive completes, signs and returns to the Plan Administrator
to designate one or more Beneficiaries.
	 
	1.4	 	“Board” means the Board of Directors of the Bank as from time to time constituted.
	 
	1.5	 	“Change in Control” means a change in the ownership or effective control of the Bank,
or in the ownership of a substantial portion of the assets of the Bank, as such change is
defined in Code Section 409A and regulations thereunder.
	 
	1.6	 	“Code” means the Internal Revenue Code of 1986, as amended, and all regulations and
guidance thereunder, including such regulations and guidance as may be promulgated after the
Effective Date of this Agreement.
	 
	1.7	 	“Disability” means the Executive: (i) is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period of not less
than twelve (12) months; or (ii) is, by reason of any medically determinable physical or
mental impairment which can be expected to result in death or can be expected to last for a
continuous period of not less

 

 

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

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

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

	1.10	 	“Effective Date” means January 1, 2007.

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

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

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

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

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

	 	(a)	 	the Executive continues to provide services as an employee of the Bank at an
annual rate that is twenty percent (20%) or more of the services rendered, on average,
during the immediately preceding three (3) full calendar years of employment (or, if
employed less than three (3) years, such lesser period) and the annual remuneration for
such services is twenty percent (20%) or more of the average annual remuneration earned
during the final three (3) full calendar years of employment (or, if less, such lesser
period), or
	 
	 	(b)	 	the Executive continues to provide services to the Bank in a capacity other
than as an employee of the Bank at an annual rate that is fifty percent (50%) or more
of the services rendered, on average, during the immediately preceding three (3) full
calendar years of employment (or if employed less than three (3) years, such lesser
period) and the annual remuneration for such services is fifty percent (50%) or more of
the average annual

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	 	 	 	remuneration earned during the final three (3) full calendar years of employment (or
if less, such lesser period).

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

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

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

	 	(a)	 	Gross negligence or gross neglect of duties to the Bank; or
	 
	 	(b)	 	Conviction of a felony or of a gross misdemeanor involving moral turpitude in
connection with the Executive’s employment with the Bank; or
	 
	 	(c)	 	Fraud, disloyalty, dishonesty or willful violation of any law or significant
Bank policy committed in connection with the Executive’s employment and resulting in a
material adverse effect on the Bank.

Article 2

Distributions During Lifetime

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

	 	2.1.1	 	Amount of Benefit. The annual benefit under this Section 2.1 is One
Hundred Sixty Thousand Dollars ($160,000).
	 
	 	2.1.2	 	Distribution of Benefit. The Bank shall distribute the annual benefit
to the Executive in twelve (12) equal monthly installments commencing on the first
business day of the month following the Executive’s Separation from Service. The annual
benefit shall be distributed to the Executive for twenty (20) years.

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

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	 	2.2.1	 	Amount of Benefit. The benefit under this Section 2.2 is the vested
Account Value determined as of the end of the Plan Year preceding Separation from
Service.
	 
	 	 	 	For the purpose of this provision, the Executive shall be vested in the Account
Value as follows:

	 	 	 	 	 
	As of Date	 	Vested Percentage
	December 31, 2008

	 	 	28.57	%
	December 31, 2009

	 	 	37.50	%
	December 31, 2010

	 	 	46.43	%
	December 31, 2011

	 	 	55.36	%
	December 31, 2012

	 	 	64.29	%
	December 31, 2013

	 	 	73.22	%
	December 31, 2014

	 	 	82.15	%
	December 31, 2015

	 	 	91.08	%
	December 31, 2016

	 	 	100.00	%

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

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

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

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

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

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

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

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

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

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

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

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

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

	 	(a)	 	may not accelerate the time or schedule of any distribution, except as provided
in Code Section 409A and the regulations thereunder;
	 
	 	(b)	 	must be made at least twelve (12) months prior to the first scheduled
distribution;
	 
	 	(c)	 	must delay the commencement of distributions for a minimum of five (5) years
from the date the first distribution was originally scheduled to be made; and
	 
	 	(d)	 	must take effect not less than twelve (12) months after the amendment is made.

Article 3

Distribution at Death

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

	 	3.1.1	 	Amount of Benefit. The benefit under this Section 3.1 is the Normal
Retirement Benefit amount described in Section 2.1.1.
	 
	 	3.1.2	 	Distribution of Benefit. The Bank shall distribute the annual benefit
to the Beneficiary in twelve (12) equal monthly installments for twenty (20) years
commencing the fast day of the month following receipt by the Bank of the Executive’s
death certificate.

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

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

Article 4

Beneficiaries

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

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

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

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

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

Article 5

General Limitations

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

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

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

	 	(a)	 	If the Executive is suspended and/or temporarily prohibited from participating
in the conduct of the Bank’s affairs by a notice served under Section 8(e)(3) or (g)(1)
of the Federal Deposit Insurance Act, as amended (“FDIA”) (12 U.S.C. 1818(e)(3) and
(g)(1)), the Bank’s obligations under the Agreement shall be suspended as of the date
of service, unless stayed by appropriate proceedings. If the charges in the notice are
dismissed, the Bank may at its discretion (i) pay the Executive all or part of the
compensation withheld while its contract obligations were suspended and (ii) reinstate
(in whole or in part) any of its obligations which were suspended.
	 
	 	(b)	 	If the Executive is removed and/or permanently prohibited from participating in
the conduct of the Banks affairs by an order issued under Sections 8(e)(4) or 8(g)(1)
of FDIA (12 U.S C. 1818(e)(4) and (g)(1)), all obligations of the Bank under this
Agreement shall terminate, as of the effective date of the order, but the vested rights
of the contracting parties shall not be affected.
	 
	 	(c)	 	If the Bank is in default (as defined in Section 3(x)(1) of the FDIA) all
obligations under this Agreement shall terminate as of the date of default, but this
paragraph shall not affect any vested tights of the contracting patties.
	 
	 	(d)	 	All obligations under this Agreement shall be terminated, except to the extent
determined that continuation of this Agreement is necessary for the continued operation
of the Bank: (i) by the Director of the Office of Thrift Supervision (“Director of
OTS”), or his or her designee, at the time that the Federal Deposit Insurance
Corporation (“FDIC”) enters into

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	 	 	 	an agreement to provide assistance to or on behalf of the Bank under the authority
contained in Section 13(c) of the FDIA, or (ii) by the Director of the OTS, or his
or her designee, at the time that the Director of the OTS, or his or her designee
approves a supervisory merger to resolve problems related to operation of the Bank
or when the Bank is determined by the Director of the OTS to be in an unsafe or
unsound condition. Any rights of the parties that have already vested, however,
shall not be affected by such action.
	 
	 	5.3.2	 	Notwithstanding anything herein to the contrary, any payments made to the
Executive pursuant to the Agreement, or otherwise, shall be subject to and conditioned
upon compliance with 12 USC 1828(k) and FDIC Regulation 12 CFR Part 359, Golden
Parachute Indemnification Payments and any regulations promulgated thereunder.

Article 6

Administration of Agreement

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

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

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

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

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

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

Article 7

Claims And Review Procedures

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

	7.1.1	 	Initiation — Written Claim. The claimant initiates a claim by
submitting to the Plan Administrator a written claim for the benefits. If such a claim
relates to the contents of a notice received by the claimant, the claim must be made
within sixty (60) days after such notice was received by the claimant. All other claims
must be made within one hundred eighty (180) days of the date on which the event that
caused the claim to arise occurred. The claim must state with particularity the
determination desired by the claimant.
	 
	7.1.2	 	Timing of Plan Administrator Response. The Plan Administrator shall
respond to such claimant within ninety (90) days after receiving the claim. If the Plan
Administrator determines that special circumstances require additional time for
processing the claim, the Plan Administrator can extend the response period by an
additional ninety (90) days by notifying the claimant in writing, prior to the end of
the initial ninety (90) day period that an additional period is required. The notice of
extension must set forth the special circumstances and the date by which the Plan
Administrator expects to render its decision.
	 
	7.1.3	 	Notice of Decision. If the Plan Administrator denies part or the
entire claim, the Plan Administrator shall notify the claimant in writing of such
denial. The Plan Administrator shall write the notification in a manner calculated to
be understood by the claimant. The notification shall set forth:

	 	(a)	 	The specific reasons for the denial;
	 
	 	(b)	 	A reference to the specific provisions of the Agreement on
which the denial is based;
	 
	 	(c)	 	A description of any additional information or material
necessary for the claimant to perfect the claim and an explanation of why it is
needed;
	 
	 	(d)	 	An explanation of the Agreement’s review procedures and the
time limits applicable to such procedures; and
	 
	 	(e)	 	A statement of the claimant’s right to bring a civil action
under ERISA Section 502(a) following an adverse benefit determination on
review.

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

	 	7.2.1	 	Initiation — Written Request. To initiate the review, the claimant,
within sixty (60) days after receiving the Plan Administrator’s notice of denial, must
file with the Plan Administrator a written request for review.
	 
	 	7.2.2	 	Additional Submissions — Information Access. The claimant shall then
have the opportunity to submit written comments, documents, records and other
information relating to the claim. The Plan Administrator shall also provide the
claimant, upon request and free of charge, reasonable access to, and copies of, all
documents, records and other information relevant (as defined in applicable ERISA
regulations) to the claimant’s claim for benefits.

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	 	7.2.3	 	Considerations on Review. In considering the review, the Plan
Administrator shall take into account all materials and information the claimant
submits relating to the claim, without regard to whether such information was submitted
or considered in the initial benefit determination.
	 
	 	7.2.4	 	Timing of Plan Administrator Response. The Plan Administrator shall
respond in writing to such claimant within sixty (60) days after receiving the request
for review. If the Plan Administrator determines that special circumstances require
additional time for processing the claim, the Plan Administrator can extend the
response period by an additional sixty (60) days by notifying the claimant in writing,
prior to the end of the initial sixty (60) day period that an additional period is
required. The notice of extension must set forth the special circumstances and the date
by which the Plan Administrator expects to render its decision.
	 
	 	7.2.5	 	Notice of Decision. The Plan Administrator shall notify the claimant
in writing of its decision on review. The Plan Administrator shall write the
notification in a manner calculated to be understood by the claimant. The notification
shall set forth:

	 	(a)	 	The specific reasons for the denial;
	 
	 	(b)	 	A reference to the specific provisions of the Agreement on
which the denial is based;
	 
	 	(c)	 	A statement that the claimant is entitled to receive, upon
request and free of charge, reasonable access to, and copies of all documents,
records and other information relevant (as defined in applicable ERISA
regulations) to the claimant’s claim for benefits; and
	 
	 	(d)	 	A statement of the claimant’s right to bring a civil action
under ERISA Section 502(a).

Article 8

Amendments and Termination

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

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

	8.3	 	Plan Terminations Under Code Section 409A. Notwithstanding anything to the contrary
in Section 8.2, the Bank may, in its sole discretion, terminate this Agreement by unilateral
action;

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	 	 	provided that, if the Bank terminates this Agreement in accordance with Section 8.3, it
shall do so in conformity with one of the following circumstances:

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

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

Article 9

Miscellaneous

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

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

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

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

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

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

11

 

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

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

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

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

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

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

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

Athens Federal Community Bank

106 West Washington Avenue

Athens, TN 37303-3545

	 	 	Such notice shall be deemed given as of the date of delivery or, if delivery is made by
mail, as of the date shown on the postmark on the receipt for registration or certification.
	 
	 	 	Any notice or filing required or permitted to be given to the Executive under this Agreement
shall be sufficient if in writing and hand-delivered or sent by mail to the last known
address of the Executive.

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

12

 

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

[Signature Page to Follow]

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

	 	 	 	 	 	 
	EXECUTIVE

	 	ATHENS FEDERAL COMMUNITY BANK	 	 
	 
	 		 	 	 
	
	 	By 	

 

	 	 
	 

Jeffrey L. Cunningham	 		 	 	 
	 

	 	Title 	

 

	 	 

14EX-10.10 FORM OF SUPPLEMENTAL EXEC RETIREMENT PLAN

Exhibit 10.10

FORM OF

ATHENS FEDERAL COMMUNITY BANK

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

Effective January 1, 2010

 

 

Athens Federal Community Bank

Supplemental Executive Retirement Plan

Table of Contents

	 	 	 	 	 	 	 
	ARTICLE I

	 	Introduction
	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE II

	 	Definitions
	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE III

	 	Eligibility and Participation
	 	 	3	 
	 
	 	 	 	 	 	 
	ARTICLE IV

	 	Benefits
	 	 	3	 
	 
	 	 	 	 	 	 
	ARTICLE V

	 	Accounts
	 	 	5	 
	 
	 	 	 	 	 	 
	ARTICLE VI

	 	Supplemental Benefit Payments
	 	 	5	 
	 
	 	 	 	 	 	 
	ARTICLE VII

	 	Claims Procedures
	 	 	6	 
	 
	 	 	 	 	 	 
	ARTICLE VIII

	 	Amendment and Termination
	 	 	7	 
	 
	 	 	 	 	 	 
	ARTICLE IX

	 	General Provisions
	 	 	7	 

 

 

ARTICLE I

INTRODUCTION

Section 1.01 Purpose, Design and Intent.

	(a)	 	The purpose of the Athens Federal Community Bank Supplemental Executive Retirement Plan (the
“Plan”) is to assist Athens Federal Community Bank (the “Bank”) in retaining the services of
key employees until their retirement, to induce such employees to use their best efforts to
enhance the business of the Bank and its affiliates, and to provide certain supplemental
retirement benefits to such employees, which cannot otherwise be provided under certain
tax-qualified retirement plans.
	 
	(b)	 	The Plan, in relevant part, is intended to constitute an unfunded “excess benefit plan” as
defined in Section 3(36) of the Employee Retirement Income Security Act of 1974, as amended.
In this respect, the Plan is specifically designed to provide certain key employees with
retirement benefits that would have been provided under various tax-qualified retirement plans
sponsored by the Bank but for the applicable limitations placed on benefits and contributions
under such plans by various provisions of the Internal Revenue Code of 1986, as amended.

ARTICLE II

DEFINITIONS

Section 2.01 Definitions. In this Plan, whenever the context so indicates, the singular or
the plural number and the masculine or feminine gender shall be deemed to include the other, the
terms “he,” “his,” and “him,” shall refer to a Participant or a beneficiary of a Participant, as
the case may be, and, except as otherwise provided, or unless the context otherwise requires, the
capitalized terms shall have the following meanings:

(a) “401(k) Plan” means [plan].

(b) “Applicable Limitations” means one or more of the following, as applicable:

	 	(i)	 	the maximum limitations on annual additions to a tax-qualified defined
contribution plan under Section 415(c) of the Code; and
	 
	 	(ii)	 	the maximum limitation on the annual amount of compensation that may, under
Section 401(a)(17) of the Code, be taken into account in determining contributions to
and benefits under tax-qualified plans; and
	 
	 	(iii)	 	the maximum limitations, under Section 401(k), 401(m), or 402(g) of the Code,
on pre-tax contributions that may be made to a qualified defined contribution plan.

(c) “Bank” means Athens Federal Community Bank and its successors.

(d) “Board of Directors” means the Board of Directors of the Bank.

(e) “Change in Control” means a change in control as defined in Section 409A of the Code and rules,
regulations, and guidance of general application thereunder issued by the Department of the
Treasury, including:

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	 	(i)	 	Change in ownership: a change in ownership of the Corporation occurs on
the date any one person or group accumulates ownership of Corporation stock
constituting more than 50% of the total fair market value or total voting power of
Corporation stock; or
	 
	 	(ii)	 	Change in effective control: (x) any one person or more than one person
acting as a group acquires within a 12-month period ownership of Corporation stock
possessing 30% or more of the total voting power of Corporation stock, or (y) a
majority of the Corporation’s board of directors is replaced during any 12-month period
by directors whose appointment or election is not endorsed in advance by a majority of
the Corporation’s board of directors; or
	 
	 	(iii)	 	Change in ownership of a substantial portion of assets: a change in
ownership of a substantial portion of the Corporation’s assets occurs if in a 12-month
period any one person or more than one person acting as a group acquires from the
Corporation assets having a total gross fair market value equal to or exceeding 40% of
the total gross fair market value of all of the Corporation’s assets immediately before
the acquisition or acquisitions. For this purpose, gross fair market value means the
value of the Corporation’s assets, or the value of the assets being disposed of,
determined without regard to any liabilities associated with the assets.

(f) “Code” means the Internal Revenue Code of 1986, as amended.

(g) “Committee” means the person(s) designated by the Board of Directors, pursuant to Section 9.02
of the Plan, to administer the Plan.

(h) “Common Stock” means the common stock of the Corporation.

(i) “Corporation” means Athens Bancshares Corporation and its successors.

(j) “Eligible Individual” means any Employee who participates in the ESOP or 401(k) Plan, as the
case may be, and whom the Board of Directors determines is one of a “select group of management or
highly compensated employees,” as such phrase is used for purposes of Sections 101, 201, and 301 of
ERISA.

(k) “Employee” means any person employed by the Bank or an Affiliate.

(l) “Employer” means the Bank or Affiliate thereof that employs the Employee.

(m) “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

(n) “ESOP” means the Athens Federal Community Bank Employee Stock Ownership Plan, as amended from
time to time.

(o) “ESOP Acquisition Loan” means a loan or other extension of credit incurred by the trustee of
the ESOP in connection with the purchase of Common Stock on behalf of the ESOP.

(p) “ESOP Valuation Date” means any day as of which the investment experience of the trust fund of
the ESOP is determined and individuals’ accounts under the ESOP are adjusted accordingly.

(q) “Effective Date” means January 1, 2010.

2

 

(r) “Participant” means an Eligible Employee who is entitled to benefits under the Plan.

(s) “Plan” means this Athens Federal Community Bank Supplemental Executive Retirement Plan, as
amended from time to time.

(t) “Separation from Service” means a termination of a Participant’s services (whether as an
employee or as an independent contractor) to the Bank. Whether a Separation from Service has
occurred shall be determined in accordance with the requirements of Section 409A of the Code based
on whether the facts and circumstances indicate that the Bank and the Participant reasonably
anticipated that no further services would be performed after a certain date or that the level of
bona fide services the Participant would performed after a certain date or (whether as an employee
or as an independent contractor) would permanently decrease to no more than twenty percent (20%) of
the average level of bona fide services performed (whether as an employee or an independent
contractor) over the immediately preceding thirty-six (36) month period.

(u) “Supplemental ESOP Account” means an account established by an Employer, pursuant to Section
5.01 of the Plan, with respect to a Participant’s Supplemental ESOP Benefit.

(v) “Supplemental ESOP Benefit” means the benefit credited to a Participant pursuant to Section
4.01 of the Plan.

(w) “Supplemental Savings Account” means an account established by an Employer, pursuant to Section
5.03 of the Plan, with respect to a Participant’s Supplemental Savings Benefit.

(x) “Supplemental Savings Benefit” means the benefit credited to a Participant pursuant to Section
4.03 of the Plan.

(y) “Supplemental Stock Ownership Account” means an account established by an Employer, pursuant to
Section 5.02 of the Plan, with respect to a Participant’s Supplemental Stock Ownership Benefit.

(z) “Supplemental Stock Ownership Benefit” means the benefit credited to a Participant pursuant to
Section 4.02 of the Plan.

ARTICLE III

ELIGIBILITY AND PARTICIPATION

Section 3.01 Eligibility and Participation.

	(a)	 	Each Eligible Employee may participate in the Plan. An Eligible Employee shall become a
Participant in the Plan upon designation as such by the Board of Directors. An Eligible
Employee whom the Board of Directors designates as a Participant in the Plan shall commence
participation as of the date established by the Board of Directors. The Board of Directors
shall establish an Eligible Employee’s date of participation at the same time it designates
the Eligible Employee as a Participant in the Plan.
	 
	(b)	 	The Board of Directors may, at any time, designate an Eligible Employee as a Participant for
any or all supplemental benefits provided for under Article IV of the Plan.

3

 

ARTICLE IV

BENEFITS

Section 4.01 Supplemental ESOP Benefit.

As of the last day of each plan year of the ESOP, the Employer shall credit the Participant’s
Supplemental ESOP Account with a Supplemental ESOP Benefit equal to the excess of (a) over (b),
where:

	(a)	 	Equals the annual contributions made by the Employer and/or the number of shares of Common
Stock released for allocation in connection with the repayment of an ESOP Acquisition Loan
that would otherwise be allocated to the accounts of the Participant under the ESOP for the
applicable plan year, if the provisions of the ESOP were administered without regard to any of
the Applicable Limitations; and
	 
	(b)	 	Equals the annual contributions made by the Employer and/or the number of shares of common
stock released for allocation in connection with the repayment of an ESOP Acquisition Loan
that are actually allocated to the accounts of the Participant under the provisions of the
ESOP for that particular plan year, after giving effect to any reduction of such allocation
required by any of the Applicable Limitations.

Section 4.02 Supplemental Stock Ownership Benefit.

	(a)	 	Upon a Change in Control, the Employer shall credit to the Participant’s Supplemental Stock
Ownership Account a Supplemental Stock Ownership Benefit equal to (i) less (ii), the result of
which is multiplied by (iii), where:

	 	(i)	 	Equals the total number of shares of Common Stock acquired with the proceeds of
all ESOP Acquisition Loans (together with any dividends, cash proceeds, or other medium
related to such ESOP Acquisition Loans) that would have been allocated or credited for
the benefit of the Participant under the ESOP and/or this Plan, as the case may be, had
the Participant continued in the employ of the Employer through the first ESOP
Valuation Date following the last scheduled payment of principal and interest on all
ESOP Acquisition Loans outstanding at the time of the Change in Control; and
	 
	 	(ii)	 	Equals the total number of shares of Common Stock acquired with the proceeds of
all ESOP Acquisition Loans (together with any dividends, cash proceeds, or other medium
related to such ESOP Acquisition Loans) and allocated for the benefit of the
Participant under the ESOP and/or this Plan, as the case may be, as of the first ESOP
Valuation Date following the Change in Control; and
	 
	 	(iii)	 	Equals the fair market value of the Common Stock immediately preceding the
Change in Control.

	(b)	 	For purposes of clause (i) of subsection (a) of this Section 4.02, the total number of shares
of Common Stock shall be determined by multiplying the sum of (i) and (ii) by (iii), where:

	 	(i)	 	Equals the average of the total shares of Common Stock acquired with the
proceeds of an ESOP Acquisition Loan and allocated for the benefit of the Participant
under the ESOP as of the three most recent ESOP Valuation Dates preceding the Change in
Control (or lesser number if the Participant has not participated in the ESOP for three
full years);

4

 

	 	(ii)	 	Equals the average number of shares of Common Stock credited to the
Participant’s Supplemental ESOP Account for the three most recent plan years of the
ESOP (such that the three most recent plan years coincide with the three most recent
ESOP Valuation Dates referred to in (i) above); and
	 
	 	(iii)	 	Equals the original number of scheduled annual payments on the ESOP
Acquisition Loan.

Section 4.03 Supplemental Savings Benefit.

A Participant’s Supplemental Savings Benefit under the Plan shall be equal to the excess of (a)
over (b), where:

	(a)	 	is the sum of the matching contributions and other contributions of the Employer that would
otherwise be allocated to an account of the Participant under the 401(k) Plan for a particular
year, if the provisions of the 401(k) Plan were administered without regard to any of the
Applicable Limitations; and
	 
	(b)	 	is the sum of the matching contributions and other contributions of the Employer that are
actually allocated on account of the Participant under the provisions of the 401(k) Plan for
that particular year, after giving effect to any reduction of such allocation required by any
of the Applicable Limitations.

ARTICLE V

ACCOUNTS

Section 5.01 Supplemental ESOP Benefit Account.

For each Participant who is credited with a benefit pursuant to Section 4.01 of the Plan, the
Employer shall establish, as a memorandum account on its books, a Supplemental ESOP Account. Each
year, the Committee shall credit to the Participant’s Supplemental ESOP Account the amount of
benefits determined under Section 4.01 of the Plan for that year. The Committee shall credit the
account with an amount equal to the appropriate number of shares of Common Stock or other medium of
contribution that would have otherwise been made to the Participant’s accounts under the ESOP but
for the limitations imposed by the Code. Shares of Common Stock shall be valued under this Plan in
the same manner as under the ESOP. Cash contributions credited to a Participant’s Supplemental
ESOP Account shall be credited annually with interest at a rate equal to the combined weighted
return provided to the Participant’s non-stock accounts under the ESOP.

Section 5.02 Supplemental Stock Ownership Account.

The Employer shall establish, as a memorandum account on its books, a Supplemental Stock Ownership
Account. Upon a Change in Control, the Committee shall credit to the Participant’s Supplemental
Stock Ownership Account the amount of benefits determined under Section 4.02 of the Plan. The
Committee shall credit the account with an amount equal to the appropriate number of shares of
Common Stock or other medium of contribution that would have otherwise been made to the
Participant’s accounts under the ESOP. Shares of Common Stock shall be valued under this Plan in
the same manner as under the ESOP. Cash contributions credited to a Participant’s Supplemental
Stock Ownership Account shall be credited annually with interest at a rate equal to the combined
weighted return provided to the Participant’s non-stock accounts under the ESOP.

5

 

Section 5.03 Supplemental Savings Account.

The Employer shall establish a memorandum account on its books, the “Supplemental Savings Account,”
for each Participant, and each year the Committee will credit the amount of contributions
determined under Section 4.03 of the Plan. Contributions credited to a Participant’s Supplemental
Savings Account shall be credited monthly with interest at a rate equal to the combined weighted
return provided to the Participant’s account(s) under the 401(k) Plan.

ARTICLE VI

SUPPLEMENTAL BENEFIT PAYMENTS

Section 6.01 Payment of Supplemental ESOP Benefit.

	(a)	 	A Participant’s Supplemental ESOP Benefit shall be paid to the Participant or, in the event
of the Participant’s death, to his beneficiary (as designated on a form acceptable to the
Employer), in a single lump sum cash payment as soon as administratively practicable following
the Participant’s Separation from Service.
	 
	(b)	 	A Participant shall have a non-forfeitable right to the Supplemental ESOP Benefit credited to
him under this Plan in the same percentage as he has with respect to benefits allocated to him
under the ESOP at the time the benefits become distributable to him under the ESOP.

Section 6.02 Payment of Supplemental Stock Ownership Benefit.

	(a)	 	A Participant’s Supplemental Stock Ownership Benefit shall be paid to the Participant or, in
the event of the Participant’s death, to his beneficiary (as designated on a form acceptable
to the Employer), in a single lump sum cash payment as soon as administratively practicable
following the Participant’s Separation from Service.
	 
	(b)	 	A Participant shall always have a fully non-forfeitable right to the Supplemental Stock
Ownership Benefit credited to him under this Plan.

Section 6.03 Payment of Supplemental Savings Benefit.

	(a)	 	A Participant’s Supplemental Savings Benefit shall be paid to the Participant or, in the
event of the Participant’s death, to his beneficiary, in the same form and at the same time as
his benefits are paid under the 401(k) Plan.
	 
	(b)	 	A Participant shall have a non-forfeitable right to his Supplemental Savings Benefit under
this Plan in the same percentage as he has to his matching contributions under the 401(k) Plan
at the time the benefits become distributable to him under the 401(k) Plan.

Section 6.04 Payment to Specified Employees.

If when a Separation from Service occurs the Participant is a “specified employee” within the
meaning of Section 409A of the Code, the benefit shall be paid to the Participant in a single lump
sum cash payment without interest on the first business day of the seventh (7th) month
after which the Participant incurs a Separation from Service.

6

 

ARTICLE VII

CLAIMS PROCEDURES

Section 7.01 Claims Reviewer.

For purposes of handling claims with respect to this Plan, the “Claims Reviewer” shall be the
Committee, unless the Committee designates another person or group of persons as Claims Reviewer.

Section 7.02 Claims Procedure.

	(a)	 	An initial claim for benefits under the Plan must be made by the Participant or his
beneficiary or beneficiaries in accordance with the terms of this Section 7.02.
	 
	(b)	 	Not later than ninety (90) days after receipt of such a claim, the Claims Reviewer will
render a written decision on the claim to the claimant, unless special circumstances require
the extension of such 90-day period. If such extension is necessary, the Claims Reviewer
shall provide the Participant or the Participant’s beneficiary or beneficiaries with written
notification of such extension before the expiration of the initial 90-day period. Such
notice shall specify the reason or reasons for the extension and the date by which a final
decision can be expected. In no event shall such extension exceed a period of ninety (90)
days from the end of the initial 90-day period.
	 
	(c)	 	In the event the Claims Reviewer denies the claim of a Participant or any beneficiary in
whole or in part, the Claims Reviewer’s written notification shall specify, in a manner
calculated to be understood by the claimant, the reason for the denial; a reference to the
Plan or other document or form that is the basis for the denial; a description of any
additional material or information necessary for the claimant to perfect the claim; an
explanation as to why such information or material is necessary; and an explanation of the
applicable claims procedure.
	 
	(d)	 	Should the claim be denied in whole or in part and should the claimant be dissatisfied with
the Claims Reviewer’s disposition of the claimant’s claim, the claimant may have a full and
fair review of the claim by the Committee upon written request submitted by the claimant or
the claimant’s duly authorized representative and received by the Committee within sixty (60)
days after the claimant receives written notification that the claimant’s claim has been
denied. In connection with such review, the claimant or the claimant’s duly authorized
representative shall be entitled to review pertinent documents and submit the claimant’s views
as to the issues, in writing. The Committee shall act to deny or accept the claim within
sixty (60) days after receipt of the claimant’s written request for review unless special
circumstances require the extension of such 60-day period. If such extension is necessary,
the Committee shall provide the claimant with written notification of such extension before
the expiration of such initial 60-day period. In all events, the Committee shall act to deny
or accept the claim within one hundred and twenty (120) days of the receipt of the claimant’s
written request for review. The action of the Committee shall be in the form of a written
notice to the claimant and its contents shall include all of the requirements for action on
the original claim.
	 
	(e)	 	In no event may a claimant commence legal action for benefits the claimant believes are due
the claimant until the claimant has exhausted all of the remedies and procedures afforded the
claimant by this Article VII.

7

 

ARTICLE VIII

AMENDMENT AND TERMINATION

Section 8.01 Amendment of the Plan.

The Bank may from time to time and at any time amend the Plan; provided, however, that such
amendment may not adversely affect the rights of any Participant or beneficiary with respect to any
benefit under the Plan to which the Participant or beneficiary may have previously become entitled
prior to the effective date of such amendment without the consent of the Participant or
beneficiary. The Committee shall be authorized to make minor or administrative changes to the
Plan, as well as amendments required by applicable federal or state law (or authorized or made
desirable by such statutes); provided, however, that such amendments must subsequently be ratified
by the Board of Directors.

Section 8.02 Termination of the Plan.

The Bank may terminate the Plan at any time; provided, however, that such termination may not
adversely affect the rights of any Participant or beneficiary with respect to any benefit under the
Plan to which the Participant or beneficiary may have previously become entitled prior to the
effective date of such termination without the consent of the Participant or beneficiary. Any
amounts credited to the supplemental accounts of any Participant shall remain subject to the
provisions of the Plan and no distribution of benefits shall be accelerated because of termination
of the Plan.

ARTICLE IX

GENERAL PROVISIONS

Section 9.01 Unfunded, Unsecured Promise to Make Payments in the Future.

The right of a Participant or any beneficiary to receive a distribution under this Plan shall be an
unsecured claim against the general assets of the Bank or its Affiliates, and neither a
Participant, nor his designated beneficiary or beneficiaries, shall have any rights in or against
any amount credited to any account under this Plan or any other assets of the Bank or an Affiliate.
The Plan at all times shall be considered entirely unfunded both for tax purposes and for purposes
of Title I of ERISA. Any funds invested hereunder shall continue for all purposes to be part of
the general assets of the Bank or an Affiliate and available to its general creditors in the event
of bankruptcy or insolvency. Accounts under this Plan and any benefits which may be payable
pursuant to this Plan are not subject in any manner to anticipation, sale, alienation, transfer,
assignment, pledge, encumbrance, attachment, or garnishment by creditors of a Participant or a
Participant’s beneficiary. The Plan constitutes a mere promise by the Bank or Affiliate to make
benefit payments in the future. No interest or right to receive a benefit may be taken, either
voluntarily or involuntarily, for the satisfaction of the debts of, or other obligations or claims
against, such Participant or beneficiary, including claims for alimony, support, separate
maintenance and claims in bankruptcy proceedings.

Section 9.02 Committee as Plan Administrator.

	(a)	 	The Plan shall be administered by the Committee designated by the Board of Directors of the
Bank.
	 
	(b)	 	The Committee shall have the authority, duty and power to interpret and construe the
provisions of the Plan as it deems appropriate. The Committee shall have the duty and
responsibility of maintaining records, making the requisite calculations and disbursing the
payments hereunder. In

8

 

	 	 	addition, the Committee shall have the authority and power to delegate any of its
administrative duties to employees of the Bank or an Affiliate, as they may deem
appropriate. The Committee shall be entitled to rely on all tables, valuations,
certificates, opinions, data and reports furnished by any actuary, accountant, controller,
counsel or other person employed or retained by the Bank with respect to the Plan. The
interpretations, determinations, regulations and calculations of the Committee shall be
final and binding on all persons and parties concerned.

Section 9.03 Expenses.

Expenses of administration of the Plan shall be paid by the Bank or an Affiliate.

Section 9.04 Statements.

The Committee shall furnish individual annual statements of accrued benefits to each Participant,
or current beneficiary, in such form as determined by the Committee or as required by law.

Section 9.05 Rights of Participants and Beneficiaries.

	(a)	 	The sole rights of a Participant or beneficiary under this Plan shall be to have this Plan
administered according to its provisions and to receive whatever benefits he may be entitled
to hereunder.
	 
	(b)	 	Nothing in the Plan shall be interpreted as a guaranty that any funds in any trust which may
be established in connection with the Plan or assets of the Bank or an Affiliate will be
sufficient to pay any benefit hereunder.
	 
	(c)	 	The adoption and maintenance of this Plan shall not be construed as creating any contract of
employment or service between the Bank or an Affiliate and any Participant or other
individual. The Plan shall not affect the right of the Bank or an Affiliate to deal with any
Participants in employment or service respects, including their hiring, discharge,
compensation, and other conditions of employment or service.

Section 9.06 Incompetent Individuals.

The Committee may, from time to time, establish rules and procedures which it determines to be
necessary for the proper administration of the Plan and the benefits payable to a Participant or
beneficiary in the event that such Participant or beneficiary is declared incompetent and a
conservator or other person is appointed and legally charged with that Participant’s or
beneficiary’s care. Except as otherwise provided for herein, when the Committee determines that
such Participant or beneficiary is unable to manage his financial affairs, the Committee may pay
such Participant’s or beneficiary’s benefits to such conservator, person legally charged with such
Participant’s or beneficiary’s care, or institution then contributing toward or providing for the
care and maintenance of such Participant or beneficiary. Any such payment shall constitute a
complete discharge of any liability of the Bank or an Affiliate and the Plan for such Participant
or beneficiary.

Section 9.07 Sale, Merger or Consolidation of the Bank.

The Plan may be continued after a sale of assets of the Bank, or a merger or consolidation of the
Bank into or with another corporation or entity only if, and to the extent that, the transferee,
purchaser or successor entity agrees to continue the Plan. Additionally, upon a merger,
consolidation or other Change in Control, any amounts credited to Participant’s deferral accounts
shall be placed in a grantor trust to the

9

 

extent not already in such a trust. In the event that the Plan is not continued by the transferee,
purchaser or successor entity, then the Plan shall be terminated subject to the provisions of
Section 8.02 of the Plan. Any legal fees incurred by a Participant in determining benefits to
which such Participant is entitled under the Plan following a sale, merger, or consolidation of the
Bank or an Affiliate of which the Participant is an Employee or, if applicable, a member of the
Board of Directors, shall be paid by the resulting or succeeding entity.

Section 9.08 Location of Participants.

Each Participant shall keep the Bank informed of his current address and the current address of his
designated beneficiary or beneficiaries. The Bank shall not be obligated to search for any person.
If such person is not located within three (3) years after the date on which payment of the
Participant’s benefits payable under this Plan may first be made, payment may be made as though the
Participant or his beneficiary had died at the end of such three-year period.

Section 9.09 Liability of the Bank and its Affiliates.

Notwithstanding any provision herein to the contrary, neither the Bank nor any individual acting as
an employee or agent of the Bank shall be liable to any Participant, former Participant,
beneficiary, or any other person for any claim, loss, liability or expense incurred in connection
with the Plan, unless attributable to fraud or willful misconduct on the part of the Bank or any
such employee or agent of the Bank.

Section 9.10 Governing Law.

All questions pertaining to the construction, validity and effect of the Plan shall be determined
in accordance with the laws of the United States and, to the extent not preempted by such laws, by
the laws of the State of Tennessee.

[Signature Page to Follow]

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This Plan has been approved and adopted by the Board of Directors of the Bank and is effective as
of January 1, 2010.

	 	 	 	 	 
	Attest:	 	ATHENS FEDERAL COMMUNITY BANK
	 
	 	 	 	 
	 
 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	For the entire of Board of Directors

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