Exhibit 10.1






Exhibit 10.1

Amended and Restated

Director Deferred Fee Plan




 









 








THE NEFFS NATIONAL BANK




AMENDED AND RESTATED

DIRECTOR DEFERRED FEE PLAN




     THIS AMENDED AND RESTATED DIRECTOR DEFERRED FEE PLAN (“Plan”) of The Neffs
National Bank (“Bank”) is adopted this 30th day of December, 2008 and is effective the
first day of January, 2008.



WITNESSETH:




     WHEREAS, the Plan is intended to continue in effect the Director Deferred Fee
Plan adopted by the Bank and first made effective the year beginning January 1, 1996;
and



     WHEREAS, the Director Deferred Fee Plan is being modified hereby for purposes of
establishing compliance with Section 409A of the Internal Revenue Code.



     NOW, THEREFORE, in consideration of the services provided by each member of the
Board of Directors of the Bank (“Director”), the Plan is hereby restated in full, as
follows:



     1. Deferred Director Fees



     In December of each year, the Bank shall deposit in trust (“Trust”) with the
Bank, as Trustee (“Trustee”), for the benefit of each Director who served as a
Director during every month of such year, an amount equal to one-twelfth of the
Director fees payable to the Director with respect to such year. The Trustee shall
invest such amount as the Trustee determines in its discretion, but in so doing, the
Trustee shall give priority first to the preservation of capital and second to the
production of income, and the Trustee may utilize for such purposes bank accounts,
money market funds, certificates of deposit or other investments the Trustee deems
consistent with the terms of the Plan, including accounts with, or instruments issued
by, the Bank, and all income shall be reinvested until the Trust property is
distributed.



     2. Payment of Deferred Director Fees



     Upon a Director’s termination of service from the Board of Directors of the Bank
for any reason, including death, the Trustee shall transfer ownership of the Trust
property held by the Trustee for the benefit of such Director, or shall liquidate such
property and pay the proceeds therefrom in cash, in all cases to include the aggregate
amount of fees deferred and income accrued, to the Director or the Director’s estate,
as the case may be, within sixty (60) days of the Director’s termination of service.



     3. Spendthrift Provision



     No Director shall have any power to transfer, assign, anticipate, alienate, sell,
hypothecate, pledge, or otherwise encumber or advance any property of the Trust, nor
shall any Trust property be subject to attachment, garnishment or seizure for the
payment of any debts or obligations of a Director or any heir or beneficiary of a
Director.



 









 





     4. Unfunded Arrangement



     The principal of the Trust, and any earnings thereon shall be held separate and
apart from other funds of the Bank and shall be used exclusively for the benefit of
Plan participants and general creditors of the Bank as herein set forth. Plan
participants and their beneficiaries shall have no preferred claim on, or any
beneficial ownership interest in, any assets of the Trust. Any rights created under
the Plan and this Trust shall be mere unsecured contractual rights of Plan
participants and their beneficiaries. Any assets held by the Trust will be subject to
the claims of the Bank’s general creditors under federal and state law, and the
Trustee shall cease any payment of benefits to Plan participants and their
beneficiaries in the event the Bank is unable to pay its debts as they become due or
the Bank is subject to a pending proceeding as a debtor under the United States
Bankruptcy Code.



     5. Construction 



     This Plan shall be construed and enforced in accordance with the laws of the
Commonwealth of Pennsylvania. Further, the Plan shall be construed consistent with
Section 409A of the Internal Revenue Code and all applicable guidance thereunder so as
not to result in the inclusion in a Director’s income of any benefit under this
Agreement by reason of the application of such section.



     6. Taxation 



     Income attributable to property held in Trust for the benefit of a Director shall
be reported annually for federal tax purposes as income of the Director, who shall be
responsible for the payment of any income taxes due with respect to such income. The
aggregate amount of fees deferred shall be reported as income of the Director for the
year in which payment is made to the Director under Section 2 hereof.



     7. Amendment or Termination 



     This Plan may be amended or terminated by the Bank at any time by an instrument
adopted in writing, and in the event of the Plan’s termination, no amount of Director
fees shall thereafter be deferred; provided, however, that in the event of the Plan’s
termination, benefit payments shall be made as though no such termination occurred
until such time as all benefits due hereunder have been paid. Notwithstanding the
foregoing, if a termination of the Plan satisfies the requirements under Section 409A
permitting the acceleration of benefits upon a plan termination, Plan benefits shall
be paid as soon as administratively feasible within the time period permitted for such
distributions under the applicable regulations.



[Signature page follows.]




2









 








     IN WITNESS WHEREOF, the Bank hereby adopts the Plan as of the date first above written.



	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	THE NEFFS NATIONAL BANK	 
	 
	 	 	 	 	 	 	 
	/s/ David C. Matulevich
 


	 	 	 	By:	/s/ Kevin A. Schmidt
 

	 	 
	 
	 	 	 	 	 	 	 
	 

	 	 	 	Title:	EVP/CEO	 	 







3