Document:

Exhibit 10.7

 

FORM OF

THE FIRST NATIONAL BANK OF MARYSVILLE

DIRECTOR DEFERRED FEE AGREEMENT

 

THIS AGREEMENT is made this       day of                             , 20    ,by THE FIRST NATIONAL BANK OF MARYSVILLE,
a national bank located in Marysville, Pennsylvania (the “Bank”), and, (the “Director”).

 

INTRODUCTION

 

To encourage the Director to remain a member of the Bank’s Board of Directors,
the Bank is willing to provide to the Director a deferred fee opportunity.  The Bank will pay the benefits from its general
assets.

 

AGREEMENT

 

The Director and the Bank agree as follows:

 

Article 1

Definitions

 

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

 

1.1.1  “Change in
Control” means any of the following:

 

(a)  (A) a merger, consolidation or division involving
corporation, (B) a sale, exchange, transfer or other disposition of
substantially all of the assets of Corporation, or (c) a purchase by
Corporation of substantially all of the assets of another entity, unless after
such merger, consolidation, division, sale, exchange, transfer, purchase or
disposition a majority of the members of the Board of Directors of the legal
entity resulting from or existing after any such transaction and of the Board
of Directors of such entity’s parent corporation, if any, are former members of
the Board of Directors of Corporation; or

 

(b)  any “person” (as such term is used in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934 (the “Exchange Act”), other
than Corporation or Bank or any “person” who on the date hereof is a director or
officer of Corporation or Bank is or becomes the “beneficial owner” (as defined
in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities
of Corporation or Bank representing thirty-five (35%) percent or more of the
combined voting power of Corporation’s or Bank’s then outstanding securities,
or

 

 

(c)  during any period of one (1) year during the term of
Executive’s employment under this Agreement, individuals who at the beginning
of such period constitute the Board of Directors of Corporation or Bank cease
for any reason to constitute at least a majority thereof: unless the election
of each director who was not a direct or at the beginning of such period has
been approved in advance by directors representing at least two-thirds of the
directors then in office who were directors at the beginning of the period.

 

Notwithstanding anything else to the contrary set forth in this
Agreement, if (i) an Agreement is executed by the Corporation providing
for any of the transactions or events constituting a Change in Control as
defined herein, and the Agreement subsequently expires or is terminated without
the transaction or event being consummated, and (ii) Director’s service
did not terminate during the period after the Agreement and prior to such
expiration or termination, for purposes of this Agreement, it shall be as
though such Agreement was never executed and no Change in Control event shall
be deemed to have occurred as a result of the execution of such Agreement.

 

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

 

1.1.3  “Corporation”
means First Perry Bancorp, Inc.

 

1.1.4  “Disability”
shall mean the Executive is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment
that can be expected to result in death or can be expected to last for a
continuous period of not less than 12 months. The executive will be deemed
disabled if the Social Security Administration has determined that he is
disabled or if a carrier of any group disability insurance policy provided by
the Bank or made available by the Bank to its employees and covering the
Director determines that he is disabled as long as the policy’s definition of
disability complies with the definition of disability under IRC Section 409A.

 

1.1.5  “Election
Form” means the Form attached as Exhibit A.

 

1.1.6  “Fees”
means the total amount earned by the Director for serving on the Bank’s Board.

 

1.1.7  “Normal
Benefit Age” means the benefit distribution age specified by the
Director in Exhibit A.

 

1.1.8  “Plan Year”
means each twelve (12) month period commencing with the month deferrals
commence under this Agreement.

 

 

1.1.9  “Termination
of Service” means the Director’s ceasing to be a member of the Bank’s
Board of Directors for any reason other than death.

 

Article 2

Deferral Election

 

2.1  Initial Election.  The Director shall make an initial deferral
election under this Agreement by filing with the Bank a signed Election Form within
thirty (30) days after the date of this Agreement.  The Election Form shall set forth the
amount of Fees to be deferred, provided such deferral opportunity shall be
limited to Fees earned during the ten-year period ending,           ,
20   , unless an extension is approved in
writing by the Bank.  The Election Form shall
be effective to defer only Fees earned after the date the Election Form is
received by the Bank.

 

2.2  Election Changes.  The Director may modify the amount of Fees to
be deferred annually by filing a new Election Form with the Bank.  The modified deferral shall not be effective
until the calendar year following the year in which the subsequent Election Form is
received by the Bank.  Any changes to the
form of benefit payment must be in accordance with Exhibit A.

 

Article 3

Deferral Account

 

3.1  Establishing and
Crediting.  The Bank shall
establish a Deferral Account on its books for the Director and shall credit to
the Deferral Account the following amounts:

 

3.1.1  Deferrals.  The Fees deferred by the Director as of the
time the Fees would have otherwise been paid to the Director.

 

3.1.2  Interest.  Interest at an annual rate of 70% of R.O.E.
R.O.E. is to be calculated by a daily quarterly average.

 

3.2  Statement of Accounts.  The Bank shall provide to the Director,
within one hundred twenty (120) days after each Plan Year, a statement setting
forth the Deferral Account balance.

 

3.3 Accounting Devise Only.  The Deferral Account is solely a device for measuring
amounts to be paid under this Agreement. 
The Deferral Account is not a trust fund of any kind.  The Director is a general unsecured creditor
of the Bank for the payment of benefits. 
The benefits represent the mere Bank promise to pay such benefits.  The Director’s rights are not subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, attachment or garnishment by the Director’s creditors.

 

 

Article 4

Lifetime Benefits

 

4.1  Normal Benefit Age.  If the Director terminates service as a
Director on or after Normal Benefit Age, the Bank shall pay to the Director the
benefit described in this Section 4.1 in lieu of any other benefit under
this Agreement.

 

4.1.1  Amount of Benefit.  The benefit under this Section 4.1 is
the Deferral Account balance at the date specified in Exhibit A.

 

4.1.2  Payment of Benefit.  The Bank shall pay the benefit to the
Director in the form specified in Exhibit A.  If installment payments are elected, the Bank
shall continue to credit interest at an annual rate as defined in Section 3.1.2
above, on the undistributed account balance during any applicable installment
period.

 

4.2  Early Termination
Benefit.  If the Director
terminates service as a Director before the Normal Benefit Age for reasons
other than death, disability or following a Change in Control, the Bank shall
pay to the Director the benefit described in this Section 4.2 in lieu of any
other benefit under this Agreement.

 

4.2.1  Amount of Benefit.
 The Benefit under this Section 4.2
is the Deferral Account balance at the Director’s Termination of Service.

 

4.2.2  Payment of Benefit.
 The Bank shall pay the benefit to the
Director in the form specified in Exhibit A. If installment payments are
elected, the Bank shall continue to credit interest at an annual rate as
defined in Section 3.1.2 above, on the undistributed account balance
during any applicable installment period.

 

4.3  Disability Benefit.
 Upon termination of Service for
disability prior to the Normal Benefit Age, the Bank shall pay to the Director
the benefit described in this Section 4.3 in lieu of any other benefit
under this Agreement.

 

4.3.1  Amount of Benefit.
 The benefit under this Section 4.3
is the Deferral Account balance at the date specified in Exhibit A.  If applicable, the Bank shall continue to
credit interest to the Deferral Account balance at a rate as defined in Section 3.1.2
above, during the period from Termination of Service until payments commence.

 

4.3.2  Payment of Benefit.
 The Bank shall pay the benefit to the
Director in the form specified in Exhibit A. If installment payments are elected
the Bank shall continue to credit interest at an annual rate as defined in 

 

 

Section 3.1.2 above on the undistributed
account balance during any applicable installment period.

 

4.4  Change of Control
Benefit.  If the Director is
in the active service of the Bank when the change occurs, the Bank shall pay to
the Director the benefit described in this Section 4.4 in lieu of any other
benefit under this Agreement.

 

4.4.1  Amount of Benefit.
 The benefit under this Section 4.4
is the Deferral Account balance at the date specified in Exhibit A.  If applicable, the Bank shall continue to
credit interest to the Deferral Account balance at a rate as defined in Section 3.1.2
above, during the period from Termination of Service until payments commence.

 

4.4.2  Payment of Benefit.
 The Bank shall pay the benefit to the
Director in the form specified in Exhibit A. If installment payments are
elected, the Bank shall continue to credit interest at an annual rate as
defined in Section 3.1.2 above, on the undistributed account balance
during any applicable installment period.

 

4.5  Hardship
Distribution.  If an
unforeseeable financial emergency arising from the death of a family member,
divorce, sickness, injury, catastrophe or similar event outside the control of the
Director occurs, the Director may petition the Board for early payout of his
Deferral Account.  If the Board
determines that the Director’s request constitutes an unforeseeable financial
emergency, the Bank shall distribute to the Director all or a portion of the
Deferral Account balance as determined by the Bank, but in no event shall the
distribution be greater than is necessary to relieve the financial hardship.  The Board of Directors shall determine whether
the request constitutes an unforeseeable financial emergency in accordance with
the definition of hardship under IRC Section 409A.

 

4.6  Notwithstanding
any other provision, in the event that Executive is determined to be a
specified employee as that term is defined in Section 409A of the Code, no
payment that is determined to be deferred compensation subject to Section 409A
of the Code shall be made before the first day of the seventh month from the date
of separation of service as that term is defined in Section 409A of the
Code.

 

Article 5

Death Benefits

 

5.1  Death Prior to
Commencement of Benefit Payments.  If the Director dies prior to commencement of benefit
payments, the Bank shall pay to the Director’s beneficiary the benefit
described in this Section 5.1 in lieu of any other benefit under this
Agreement.

 

 

5.1.1  Amount of Benefit.
 The benefit amount under Section 5.1
is the Deferral Account balance.

 

5.1.2  Payment of Benefit.
 The Bank shall pay the benefit to the beneficiary
in the form specified in Exhibit A, with payment made or commencing on the
first day of January following the Director’s death.  If installment payments are elected, the Bank
shall continue to credit interest at an annual rate as defined in Section 3.1.2
above, compounded monthly, on the undistributed account balance during any
applicable installment period.

 

5.2 Death During
Benefit Period.  If the
Director dies after benefit payments have commenced under this Agreement, but
before receiving all such payments, the Bank shall pay the remaining benefits
to the Director’s beneficiary at the same time and in the same amounts they
would have been paid to the Director had the Director survived.

 

Article 6

Beneficiaries

 

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

 

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

 

Article 7

General Limitations

 

Notwithstanding any provision of this Agreement to the contrary, the
Bank shall not pay any benefit under this Agreement that is attributable to the
interest earned on such contributions.

 

 

7.1  Excess Parachute
or Golden Parachute Payment.  To
the extent the benefit would be an excess parachute payment under Section 280G
of the Code or would be a prohibited golden parachute payment pursuant to 12
C.F.R 359.2 and for which the appropriate federal banking agency has not given
written consent to pay pursuant to 12 C.F.R. 359.4.

 

 7.2  Termination for Cause.  If the
Bank terminates the Director’s service for:

 

7.2.1  Gross
negligence or gross neglect of duties;

 

7.2.2  Commission
of a felony or of a gross misdemeanor involving moral turpitude; or

 

7.2.3  Fraud,
disloyalty, dishonesty or willful violation of any law or significant Bank
policy committed in connection with the Director’s service and resulting in an
adverse effect on the Bank.

 

7.3  Removal.  If the Director is subject to a final removal
or prohibition order issued by an appropriate federal banking agency pursuant to
Section 8(e) of the Federal Deposit Insurance Act.

 

7.4  Competition After
Termination of Service.  If the
Director, without the prior written consent of the Bank engages in, becomes
interested in, directly or indirectly, as a sole proprietor, as a partner in a
partnership, or as a substantial shareholder in a corporation, or becomes
associates with, in the capacity of employee, director, officer, principal,
agent, trustee or in any other capacity whatsoever, any enterprise conducted in
the trading area (a 50 mile radius of the main office of the Corporation),
which enterprise is, or may deemed to be, competitive with any business carried
on by the Corporation as of the date of termination of the Director’s service
or his retirement.  This section shall
not apply following a Change in Control.

 

7.5  Suicide.  If the Director commits suicide within
two years after the date of this Agreement, or if the Director has made any
material misstatement of fact on any application for life insurance purchased
by the Bank.

 

Article 8

Claims and Review Procedures

 

8.1 Claims Procedure.
 The Bank shall notify any person or
entity that makes a claim against the Agreement (the “Claimant”) in writing,
within ninety (90) days of Claimant’s written application for benefits, of Claimant’s
eligibility or ineligibility for benefits under the Agreement.  If the Bank determines that the Claimant is not
eligible for benefits or full benefits, the notice shall set forth (1) the
specific reasons for such denial, (2) a specific reference to the
provisions of the Agreement on which the denial is based, (3) a
description of any additional 

 

 

information or material necessary for the Claimant to perfect Claimant’s
claim, and a description of why it is needed, and (4) an explanation of
the Agreement’s claims review procedure and other appropriate information as to
the steps to be taken if the Claimant wishes to have the claim reviewed.  If the Bank determines that there are special
circumstances requiring additional time to make a decision, the Bank shall notify
the Claimant of the special circumstances and the date by which a decision is
expected to be made, and may extend the time for up to an additional ninety-day
period.

 

8.2  Review Procedure.
 If the Claimant is determined by the
Bank not to be eligible for benefits, or if the claimant believes that claimant
is entitled to greater or different benefits, the Claimant shall have the
opportunity to have such claim reviewed by the Bank by filing a petition for
review with the Bank within sixty (60) days after receipt of the notice issued
by the Bank.  Said petition shall state
the specific reasons which the Claimant believes entitle Claimant to benefits
or to greater or different benefits.  Within
sixty (60) days after receipt by the Bank of the petition, the Bank shall
afford the claimant (and counsel, if any) an opportunity to present Claimant’s
position to the Bank orally or in writing, and the Claimant (and counsel) shall
have the right to review the pertinent documents.  The Bank shall notify the Claimant of it’s decision in writing within the sixty-day period,
stating specifically the basis of its decision, written in a manner calculated
to be understood by the Claimant and the specific provisions of the Agreement
on which the decision is based.  If,
because of the need for a hearing, the sixty-day period is not sufficient, the
decision may be deferred for up to another sixty-day period at the election of the
Bank, but notice of this deferral shall be given to the Claimant.

 

Article 9

Amendments and Termination

 

This Agreement may be amended or terminated only by a written Agreement
signed by the Bank and the Director, except as specified in Article 7.

 

Article 10

Miscellaneous

 

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

 

10.2  No Guarantee
of Service.  This Agreement is
not a contract for services.  It does not
give the Director the right to remain a director of the Bank, nor does it interfere
with the shareholders’ rights to replace the Director.  It also does not require the Director to
remain a director nor interfere with the Director’s right to terminate service
at any time.

 

 

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

 

10.4  Tax Withholding.
 The Bank shall withhold any taxes that
are required to be withheld from the benefits provided under this Agreement.

 

10.5  Applicable Law.
 The Agreement and all rights hereunder
shall be governed by the laws of the Commonwealth of Pennsylvania, except to the
extent preempted by the laws of the United States of America.  This agreement is intended to be administered
in a manner consistent with the requirements, where applicable, of Section 409a
of the Code.

 

10.6  Unfunded Arrangement.
 The Director and beneficiary 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.

 

10.7  Recovery of Estate
Taxes.  If the Director’s
gross estate for federal estate tax purposes includes any amount determined by
reference to and on account of this Agreement, and if the beneficiary is other
than the Director’s estate, then the Director’s estate shall be entitled to
recover from the beneficiary receiving such benefit under the terms of the
Agreement, an amount by which the total estate tax due by the Director’s
estate, exceeds the total estate tax which would have been payable if the value
of such benefit had not been included in the Director’s gross estate.  If there is more than one person receiving
such benefit, the right of recovery shall be against each such person.  In the event the beneficiary has a liability
hereunder, the beneficiary may petition the Bank for a lump sum payment in an
amount not to exceed the beneficiary’s liability hereunder.

 

10.8  Entire Agreement.
 This Agreement constitutes the entire
agreement between the Bank 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.

 

10.9  Reorganization.  The Bank shall not merge or consolidate into
or with another company, or reorganize or sell substantially all of its assets
to another company, firm or person unless such succeeding or continuing
company, firm or person agrees to assume and discharge the obligations of the
Bank

 

10.10  Administration.  The Bank shall have powers which are necessary
to administer this Agreement, included, but not limited to:

 

10.10.1  Interpreting the
provisions of this Agreement.

 

 

10.10.2  Establishing and
revising the method of accounting for the Agreement.

 

10.10.3  Maintaining a record
of benefit payments; and

 

10.10.4  Establishing rules and
prescribing any forms necessary or desirable to administer the Agreement.

 

10.11 Named Fiduciary.
 The Bank shall be the named fiduciary
and plan administrator under this Agreement.  The named fiduciary may delegate to others
certain aspects of the management and operation responsibilities of the plan
including the service of advisors and the delegation of ministerial duties to
qualified individuals.

 

 

IN WITNESS WHEREOF, the Director and a duly authorized Bank officer
have signed this Agreement.

 

 

	
  DIRECTOR: 

  	
   

  	
  BANK:

  
	
   

  	
   

  	
  THE FIRST NATIONAL BANK OF

  
	
   

  	
   

  	
  MARYSVILLE

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title

  	
   

  
						

 

 

By execution hereof; First Perry Bancorp, Inc. consents to and
agrees to be bound by the terms and conditions of this Agreement.

 

 

	
  ATTEST:

  	
   

  	
  CORPORATION:

  
	
   

  	
   

  	
  FIRST PERRY BANCORP, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title

  	
   

  
						

 

 

EXHIBIT A

 

THE FIRST NATIONAL BANK OF MARYSVILLE

DIRECTOR DEFERRED FEE AGREEMENT

 

Election Form

 

Deferral
Election (Initial and Complete one):

 

	
   

  	
          I
  elect to defer     % of my fees for           
  months, increasing or decreasing to         %
  commencing in                   .
  20     .

  
	
   

  	
   

  	
  (mo./yr.)

  	
   

  
	
   

  	
   

  
	
   

  	
              I
  elect to defer $            per
  month for
              months,  increasing or
  decreasing to $            per
  month commencing             in      ,
  20      . 

  

 

Benefit
Age:

 

I
elect a Norman Benefit Age of       .

 

Timing
of Payout:

 

If
I terminate service after Normal Benefit Age, I elect to have my benefits
distributed commencing within 30 days of: (Initial One)

 

            Normal
Benefit Age

 

            Termination
of Service

 

 If I terminate service before Normal Benefit
Age due to Disability, I elect to have my benefits distributed commencing
within 30 days of: (Initial One)

 

            Normal
Benefit Age

 

            Termination
of Service

 

If
a Change in Control occurs prior to Normal Benefit Age, I elect to have my benefits
distributed commencing within 30 days of: (Initial One)

 

            Normal
Benefit Age

 

            Termination
of Service

 

            The
date the Change in Control occurs

 

 

EXHIBIT A

 

THE FIRST NATIONAL BANK OF MARYSVILLE

DIRECTOR DEFERRED FEE AGREEMENT

 

CONTINUED

 

Form of
Payment:

 

I
elect to have my benefits paid in the following form (initial “a” or ‘‘b’’ for
each category):

 

	
  Section

  Reference

  	
   

  	
  Triggering

  Event

  	
   

  	
  Lump Sum

  	
   

  	
  Annuitized
  over

  120 Months

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.1.2

  	
   

  	
  Normal
  Benefit Age

  	
   

  	
  (a)

  	
   

  	
  (b)

  	
   

  
	
  4.2.2

  	
   

  	
  Early
  Termination

  	
   

  	
  (a)

  	
   

  	
  (b)

  	
   

  
	
  4.3.2

  	
   

  	
  Disability

  	
   

  	
  (a)

  	
   

  	
  (b)

  	
   

  
	
  4.4.2

  	
   

  	
  Change
  in Control

  	
   

  	
  (a)

  	
   

  	
  (b)

  	
   

  
	
  5.1.2

  	
   

  	
  Death
  

  	
   

  	
  (a)

  	
   

  	
  (b)

  	
   

  

 

I
understand that I may change the form ofbenefit elected provided such change is
made at least 12 months prior to the date the payment becomes due.

 

 

	
  Signature:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  
				

 

 

Accepted
by the Bank this          day of                        ,
20    .

 

THE
FIRST NATIONAL BANK OF MARYSVILLE

 

 

	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
				

 

 

EXHIBITB

 

THE FIRST NATIONAL BANK OF MARYSVILLE

DIRECTOR DEFERRED FEE AGREEMENT

 

Planned Fee Deferrals

 

	
   

  	
   

  	
  (A) 

  	
   

  	
  (B)

  	
   

  
	
   

  	
   

  	
  Planned Annual 

  	
   

  	
  Planned Cumulative

  	
   

  
	
  Plan Year 

  	
   

  	
  Deferrals

  	
   

  	
  Deferrals

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
   

  	
  $

  	
  1,000.00

  	
   

  	
  $

  	
  1,000.00

  	
   

  
	
  2

  	
   

  	
   

  	
  $

  	
  1,000.00

  	
   

  	
  $

  	
  2,000.00

  	
   

  
	
  3

  	
   

  	
   

  	
  $

  	
  6,000.00

  	
   

  	
  $

  	
  8,000.00

  	
   

  
	
  4

  	
   

  	
   

  	
  $

  	
  6,000.00

  	
   

  	
  $

  	
  14,000.00

  	
   

  
	
  5

  	
   

  	
   

  	
  $

  	
  6,000.00

  	
   

  	
  $

  	
  20,000.00

  	
   

  
	
  6

  	
   

  	
   

  	
  $

  	
  6,000.00

  	
   

  	
  $

  	
  26,000.00

  	
   

  
	
  7

  	
   

  	
   

  	
  $

  	
  6,000.00

  	
   

  	
  $

  	
  32,000.00

  	
   

  

 

 

THE FIRST NATIONAL BANK OF MARYSVILLE

DIRECTOR DEFERRED FEE AGREEMENT

 

Beneficiary Designation

 

I
designate the following as beneficiary of benefits under the Director Deferred
Fee Agreement payable following my death:

 

Primary
Beneficiary:

 

	
  Name:
  

  	
  Relationship:

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

Contingent
Beneficiary:  (to receive the benefits if there is no
surviving Primary Beneficiary)

 

	
  Name:
  

  	
  Relationship:

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

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 filing a new written
designation with the Bank.  I further
understand that the designations will be automatically revoked if the
beneficiary predeceases me, or, if I have named my spouse as beneficiary, in
the event of the dissolution of our marriage.

 

	
  Signature:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  
				

 

 

Accepted by the Bank this        day
of                   , 20   .

 

 

	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:Exhibit 10.8

 

FIRST NATIONAL BANK OF MARYSVILLE

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
AGREEMENT

 

THIS AGREEMENT is made effective this 1st day of January, 2003 (the “Effective
Date”), by and between First National Bank of Marysville (the “Bank”), a national
bank located in Marysville, Pennsylvania and WILLIAM HUMMEL (the “Executive”),
intending to be legally bound hereby.

 

INTRODUCTION

 

The purpose of this Agreement is to provide specified benefits to
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
ERISA.

 

To encourage the Executive to remain an employee of the Bank, the Bank
is willing to provide supplemental retirement benefits to the Executive.  The Bank will pay the benefits from its
general assets.

 

AGREEMENT

 

Article 1

Definitions

 

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

 

1.1.1                        “Change in Control” means any of the following:

 

(A)                              any person (as such term is
used in Sections 13d and 14d-2 of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”)), other than the Corporation, a subsidiary of the Corporation,
an employee benefit plan (or related trust) of the Corporation or a direct or
indirect subsidiary of the Corporation, or Affiliates of the Corporation (as
defined in Rule 12b-2 under the Exchange Act), becomes the beneficial
owner (as determined pursuant to Rule 13d-3 under the Exchange Act),
directly or indirectly, of securities of the Corporation representing more than
25% of the combined voting power of the Corporation’s then outstanding securities
(other than a person owning 10% or more of the voting power of stock on the
date hereof); or

 

(B)                                the liquidation or
dissolution of the Corporation or the occurrence of, or execution of an
agreement providing for a sale of all or substantially all of the assets of the
Corporation to an entity which is not a direct or indirect subsidiary of the
Corporation; or

 

 

(C)                                the occurrence of, or
execution of an agreement providing for a reorganization, merger, consolidation
or other similar transaction or connected series of transactions of the
Corporation as a result of which either (a) the Corporation does not
survive or (b) pursuant to which shares of the Corporation common stock (“Common
Stock”) would be converted into cash, securities or other property, unless, in
case of either (a) or (b), the holders of the Corporation Common Stock
immediately prior to such transaction will, following the consummation of the
transaction, beneficially own, directly or indirectly, more than 50% of the
combined voting power of the then outstanding voting securities entitled to
vote generally in the election of directors of the corporation surviving, continuing
or resulting from such transaction; or

 

(D)                               the occurrence of, or
execution of an agreement providing for a reorganization, merger, consolidation
or similar transaction of the Corporation, or before any connected series of
such transactions, if upon consummation of such transaction or transactions,
the persons who are members of the Board of Directors of the Corporation
immediately before such transaction or transactions cease or, in the case of
the execution of an agreement for such transaction or transactions, it is
contemplated in such agreement that upon consummation such persons would cease
to constitute a majority of the Board of Directors of the Corporation or, in
the case where the Corporation does not survive in such transaction, of the corporation
surviving, continuing or resulting from such transaction or transactions; or

 

(E)                                 any other event which
is at any time designated as a “Change in Control” for purposes of this Plan by
a resolution adopted by the Board of Directors of the Corporation with the
affirmative vote of a majority of the non-employee directors in office at the
time the resolution is adopted; in the event any such resolution is adopted,
the Change in Control event specified thereby shall be deemed incorporated
herein by reference and thereafter may not be amended, modified or revoked without
the written agreement of the Executive; or

 

(F)                                 during any period of
two consecutive years during the term of this Plan, individuals who at the
beginning of such period constitute the Board of Directors of the Bank or
Corporation cease for any reason to constitute at least a majority thereof,
unless the election of each director who was not a director at the beginning of
such period has been approved in advance by directors representing at least
two-thirds of the directors then in office who were directors at the beginning
of the period, provided however this provision shall not apply in the event
two-thirds of the Board of Directors at the beginning of a period no longer are
directors due to death, normal retirement, or other circumstances not related
to a Change in Control.

 

 

Notwithstanding anything else to the contrary set forth in this Plan,
if (i) an agreement is executed by the Corporation providing for any of
the transactions or events constituting a Change in Control as defined herein,
and the agreement subsequently expires or is terminated without the transaction
or event being consummated, and (ii) Executive’s employment did not
terminate during the period after the agreement and prior to such expiration or
termination, for purposes of this Plan it shall be as though such agreement was
never executed and no Change in Control event shall be deemed to have occurred
as a result of the execution of such agreement.

 

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

 

1.1.3                        “Corporation” means First Perry Bancorp, Inc.

 

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

 

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

 

1.1.6                        “Normal Retirement Age” means the Executive’s 62nd birthday.

 

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

 

1.1.8                        “Plan Year” means each consecutive twelve (12) month period commencing
with the Effective Date of this Agreement.

 

1.1.9                        “Termination of Employment” means that the Executive ceases
to be employed by the Bank for any reason other than by reason of a leave of
absence which is approved by the Bank.  For
purposes of this Agreement, if there is a dispute over the employment status of
the Executive or the date of the Executive’s Termination of Employment, the Bank
shall have the sole and absolute right to decide the dispute.

 

 

Article 2

Living Benefits

 

2.1                                 Normal Retirement Benefit. 
The Bank shall pay to the Executive the benefit described in this Section 2.1
in lieu of any other benefit under this Agreement upon Termination of
Employment on or after the Normal Retirement Age for reasons other than death.

 

2.1.1                        Amount of Benefit. 
The annual Normal Retirement Benefit under this Section 2.1 is
$14,411 (fourteen thousand four hundred and eleven dollars). The Bank may
increase the annual benefit under this Section 2.1 at the sole and
absolute discretion of the Bank’s Board of Directors.  Any increase in the annual benefit shall
require the recalculation of all the amounts on Schedule A attached
hereto.  The annual benefit amounts on
Schedule A are calculated by amortizing the Accrued Benefit using the interest
method of accounting, a 7.00% discount rate, monthly compounding and monthly
payments.

 

2.1.2                        Payment of Benefit. 
The Bank shall pay the annual benefit to the Executive in equal monthly
installments payable on the first day of each month commencing with the month
following the Executive’s Normal Retirement Date and continuing for the 239
months that follow.

 

2.1.3                        Benefit Increases. 
Commencing on the first anniversary of the first benefit payment, and
continuing on each subsequent anniversary, the Bank’s Board of Directors, in
its sole discretion, may increase the benefit.

 

2.2                                 Early Termination Benefit. 
Upon Early Termination, the Bank shall pay to the Executive the benefit
described in this Section 2.2 in lieu of any other benefit under this
Agreement.

 

2.2.1                        Amount of Benefit. 
The annual benefit under this Section 2.2 is the Early Termination
Annual Benefit set forth in Schedule A for the Plan Year ended immediately
prior to the Early Termination Date.

 

2.2.2                        Payment of Benefit. 
The Bank shall pay the annual benefit to the Executive in equal monthly
installments commencing with the month following the Executive’s Normal
Retirement Age and continuing for the 239 months that follow.

 

2.2.3                        Benefit Increases. 
Benefit payments may be increased as provided in Section 2.1.3.

 

2.3                                 Disability Benefit. 
If the Executive terminates employment due to Disability prior to Normal
Retirement Age, the Bank shall pay to the Executive the benefit described in
this Section 2.3 in lieu of any other benefit under this Agreement.

 

2.3.1                        Amount of Benefit. 
The annual benefit under this Section 2.3 is the Disability Benefit
amount set forth in Schedule A for the Plan Year ended   immediately prior to the date in which Termination
of Employment occurs.

 

 

2.3.2                        Payment of Benefit. 
The Bank shall pay the annual benefit to the Executive in equal monthly
installments commencing within 90 days following the date of the Executive’s
Termination of Employment and continuing for the 239 months that follow.

 

2.3.3                        Benefit Increases. 
Benefit payments may be increased as provided in Section 2.1.3.

 

2.4                                 Change in Control Benefit. 
If Executive is in active service at the time of a Change in Control,
the Bank shall pay to the Executive the benefit described in this Section 2.4
in lieu of any other benefit under this Agreement.

 

2.4.1                        Amount of Benefit. 
The benefit under this Section 2.4 is the benefit set forth in Section 2.1.1.

 

2.4.2                        Payment of Benefit. 
The Bank shall pay the annual benefit to the Executive in equal monthly
installments commencing with the month following the Executive’s Normal
Retirement Age and continuing for the 239 months that follow.

 

Article 3

Death Benefits

 

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

 

3.1.1                        Amount of Benefit. 
The annual benefit under this Section 3.1 is the Pre­Retirement
Annual Death Benefit amount set forth in Schedule A for the Plan Year ended
immediately prior to the date in which Termination of Employment due to death
occurs.

 

3.1.2                        Payment of Benefit. 
The Bank shall pay the annual benefit to the beneficiary in 240 equal
monthly installments payable on the first day of each month commencing within 60
days of receipt by the Bank of the Executive’s death certificate.

 

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

 

3.3                                 Death Following Termination of Employment But Before Benefits Commence.  If the Executive is entitled to benefits
under this Agreement, but dies prior to receiving said benefits, the Bank shall
pay to the Executive’s beneficiary the same benefits, in the same manner, they
would have been paid to the Executive had the Executive survived; however, said
benefit payments will commence within 60 days of receipt by the Bank of the
Executive’s death certificate.

 

 

Article 4

Beneficiaries

 

4.1                                 Beneficiary Designations. 
The Executive shall designate a beneficiary by filing a written
designation with the Bank.  The Executive
may revoke or modify the designation at any time by filing a new
designation.  However, designations will
only be effective if signed by the Executive and accepted by the Bank during
the Executive’s lifetime.  The Executive’s
beneficiary designation shall be deemed automatically revoked if the
beneficiary predeceases the Executive, or if the Executive names a spouse as
beneficiary and the marriage is subsequently dissolved.  If the Executive dies without a valid
beneficiary designation, all payments shall be made to the Executive’s estate.

 

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

 

Article 5

General Limitations

 

5.1                                 Excess Parachute or Golden Parachute Payment.  If the payments and benefits pursuant to this
Agreement, either alone or together with other payments and benefits which the
Executive has the right to receive from the Bank, would constitute a “parachute
payment” under Section 280G of the Code or would be a prohibited golden
parachute payment pursuant to 12 C.F.R. §359.2 and for which the appropriate
federal banking agency has not given written consent to pay pursuant to 12
C.F.R. §359.4, the payments and benefits pursuant to this Agreement shall be
reduced, in the manner determined by the Executive, by the amount, if any,
which is the minimum necessary to result in no portion of the payments and
benefits under this Agreement being non-deductible to the Bank pursuant to Section 280G
of the Code and subject to the excise tax imposed under Section 4999 of
the Code.

 

5.2                                 Termination for Cause. 
Notwithstanding any provision of this Agreement to the contrary, the
Bank shall not pay any benefit under this Agreement, if the Bank terminate the
Executive’s employment for cause. 
Termination of the Executive’s employment for “Cause” shall mean
termination because of personal dishonesty, willful misconduct, breach of
fiduciary duty involving personal profit, intentional failure to perform stated
duties, willful violation of any law, rule or regulation (other than
traffic violations or similar offenses) or final cease-and-desist order or
material breach of any provision of the Agreement.  For purposes of this paragraph, no act or
failure to act on the Executive’s part shall be considered ‘‘willful’’ unless
done, or omitted to be done, by the Executive not in good faith and without
reasonable belief that the Executive’s action or omission was in the best
interest of the Bank.

 

 

5.3                                 Removal. 
Notwithstanding any provision of this Agreement to the contrary, the
Bank shall not pay any benefit under this Agreement if the Executive is subject
to a final removal or prohibition order issued by an appropriate federal
banking agency pursuant to Section 8(e) of the Federal Deposit
Insurance Act (“FDIA”).

 

5.4                                 Competition after Termination of Employment.  The Executive shall forfeit his right to any
further benefits if the Executive, without the prior written consent of the
Bank, violates anyone of the following described restrictive covenants.

 

5.4.1                        Non-compete Provision. 
The Executive shall not, for the term of this Plan and until all
benefits have been distributed, directly or indirectly, either as an individual
or as a proprietor, stockholder, partner, officer, director, employee, agent,
consultant or independent contractor of any individual, partnership, corporation
or other entity (excluding an ownership interest of three percent (3%) or less
in the stock of a publicly traded company):

 

(i)                 become employed by, participate in, or
be connected in any manner with the ownership, management, operation or control
of any bank, savings and loan or other similar financial institution if the
Executive’s responsibilities will include providing banking or other financial
services within the twenty-five (25) miles of any office maintained by the Bank
as of the date of the termination of the Executive’s employment; or

 

(ii)                  participate in any way in hiring or
otherwise engaging, or assisting any other person or entity in hiring or
otherwise engaging, on a temporary, part-time or permanent basis, any
individual who was employed by the Bank as of the date of termination of the
Executive’s employment; or

 

(iii)                   assist, advise, or serve in any
capacity, representative or otherwise, any third party in any action against
the Bank or transaction involving the Bank; or

 

(iv)              sell, offer to sell, provide banking or
other financial services, assist any other person in selling or providing
banking or other financial services, or solicit or otherwise compete for,
either directly or indirectly, any orders, contract, or accounts for services of
a kind or nature like or substantially similar to the financial services
performed or financial products sold by the Bank (the preceding hereinafter
referred to as “Services”), to or from any person or entity from whom the
Executive or the Bank, to the knowledge of the Executive provided banking or
other financial services, sold, offered to sell or solicited orders, contracts
or accounts for Services during the three (3) year period immediately
prior to the termination of the Executive’s employment; or

 

(v)             divulge, disclose, or communicate to
others in any manner whatsoever, any confidential information of the Bank, to
the knowledge of the Executive , including, but not limited to, the names and
addresses of customers or prospective customers, of the Bank, as they may have
existed from time to time, of work performed or services rendered for any
customer, any method and/or procedures relating to projects or other work
developed for the Bank, earnings or other information concerning the Bank.

 

 

The restrictions contained in this subparagraph (v) apply to all information
regarding the Bank, regardless of the source who provided or compiled such
information.  Notwithstanding anything to
the contrary, all information referred to herein, shall not be disclosed unless
and until it becomes known to the general public from sources other than the
Executive.

 

5.4.2                        Judicial Remedies.  In
the event of a breach or threatened breach by the Executive of any provision of
these restrictions, the Executive recognizes the substantial and immediate harm
that a breach or threatened breach will impose upon the Bank, and further
recognizes that in such event monetary damages may be inadequate to fully
protect the Bank.  Accordingly, in the event
of a breach or threatened breach of this Agreement, the Executive consents to
the Bank’s entitlement to such ex  parte, preliminary,
interlocutory, temporary or permanent injunctive, or any other equitable
relief, protecting and fully enforcing the Bank’s rights hereunder and
preventing the Executive from further breaching any of his obligations set
forth herein.  The Executive expressly
waives any requirement, based on any statute, rule of procedure, or other
source, that the Bank post a bond as a condition of obtaining any of the
above-described remedies.  Nothing herein
shall be construed as prohibiting the Bank from pursuing any other remedies
available to the Bank at law or in equity for such breach or threatened breach,
including the recovery of damages from the Executive.  The Executive expressly acknowledges and
agrees that:  (i) the restrictions
set forth in Section 5.4.1 hereof are reasonable, in terms of scope,
duration, geographic area, and otherwise, (ii) the protections afforded
the Bank in Section 5.4.1 hereof are necessary to protect its legitimate
business interest, (iii) the restrictions set forth in Section 5.4.1 hereof
will not be materially adverse to the Executive’s employment with the Bank, and
(iv) his agreement to observe such restrictions forms a material part of
the consideration for this Agreement.

 

5.4.3                        Overbreadth of Restrictive Covenant.  It is the intention of the parties that if
any restrictive covenant in this Agreement is determined by a court of
competent jurisdiction to be overly broad, then the court should enforce such
restrictive covenant to the maximum extent permitted under the law as to area,
breadth and duration.

 

5.4.4                        Change in Control. 
The non-compete provision detailed in Section 5.4.1 hereof shall not be
enforceable following a Change in Control.

 

5.5                                 Suicide or Misstatement. 
No benefits shall be payable if the Executive commits suicide within two
years after the date of this Agreement, or if the insurance company denies
coverage for material misstatements of fact made by the Executive on any application
for life insurance purchased by the Bank.

 

Article 6

Claims and Review Procedures

 

6.1                                 Claims Procedure.  An
Executive 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
Bank a written claim for the benefits.

 

6.1.2                        Timing of Bank Response. 
The Bank shall respond to such claimant within 90 days after receiving
the claim.  If the Bank determines that
special circumstances require additional time for processing the claim, the
Bank 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 Bank expect to render their decision.

 

6.1.3                        Notice of Decision. 
If the Bank denies part or all of the claim, the Bank shall notify the
claimant in writing of such denial.  The
Bank shall write the notification in a manner calculated to be understood by
the claimant.  The notification shall set
forth:

 

6.1.3.1  The specific reasons for
the denial,

 

6.1.3.2  A reference to the
specific provisions of the Agreement on which the denial is based,

 

6.1.3.3 
A description of any additional information or material necessary for
the claimant to perfect the claim and an explanation of why it is needed,

 

6.1.3.4 
An explanation of the Agreement’s review procedures and the time limits
applicable to such procedures, and

 

6.1.3.5 
A statement of the claimant’s right to bring a civil action under ERISA Section
502(a) following an adverse benefit determination on review.

 

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

 

6.2.1                        Initiation -Written Request. 
To initiate the review, the claimant, within 60 days after receiving the
Bank’s notice of denial, must file with the Bank 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 Bank shall also
provide the claimant, upon request and free of charge, reasonable access to,
and copies of, all documents, records and other information relevant (as
defined in applicable ERISA regulations) to the claimant’s claim for benefits.

 

6.2.3                        Considerations on Review. 
In considering the review, the Bank 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 Bank Response. 
The Bank shall respond in writing to such claimant within 60 days after
receiving the request for review.  If the
Bank determines that special circumstances require additional time for
processing the claim, the Bank 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 Bank expects to render its
decision.

 

6.2.5                        Notice of Decision. 
The Bank shall notify the claimant in writing of its decision on
review.  The Bank shall write the
notification in a manner calculated to be understood by the claimant. The
notification shall set forth:

 

6.2.5.1  The specific reasons for
the denial,

 

6.2.5.2  A reference to the
specific provisions of the Plan on which the denial is based,

 

6.2.5.3 
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

 

6.2.5.4 
A statement of the claimant’s right to bring a civil action under ERISA Section 502(a).

 

Article 7

Amendments and Termination

 

No provisions of this Agreement may be modified, waived or discharged
unless such waiver, modification or discharge is agreed to in writing signed by
the Executive and such officer or officers as may be specifically designated by
the Boards of Directors of the Bank to sign on their behalf.  No waiver by any party hereto at any time of
any breach by any other party hereto of, or compliance with, any condition or
provision of this Agreement to be performed by such other party shall be deemed
a waiver of similar or dissimilar provisions or conditions at the same or at
any prior or subsequent time.

 

Article 8

Miscellaneous

 

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

 

8.1.1                        Interpreting
the provisions of the Agreement;

 

8.1.2                        Establishing
and revising the method of accounting for the Agreement;

 

 

8.1.3                        Maintaining
a record of benefit payments;

 

8.1.4                        Establishing
rules and prescribing any forms necessary or desirable to administer the
Agreement; and

 

8.1.5                        Delegate
any of the foregoing powers to any person or persons or committee or
committees.

 

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

 

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

 

8.4                                 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.

 

8.5                                 Administrator.  The
Bank shall be the administrator under this Agreement. The Bank may delegate to
others certain aspects of the management and operational responsibilities
including the service of advisors and the delegation of ministerial duties to
qualified individuals.

 

8.6                                 Right of Offset.  The
Bank shall have the right to offset the benefits against any unpaid obligation
the Executive may have with the Bank.

 

8.7                                 No Guarantee of Employment. 
This Agreement is not an employment policy or contract.  It does not give the Executive the right to
remain an employee of the Bank, nor does it interfere with the Bank’s right to
discharge the Executive.  It also does
not require the Executive to remain an employee nor interfere with the
Executive’s right to terminate employment at any time.

 

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

 

8.9                                 Notice.  For the
purposes of this Agreement, notices and all other communications provided for
in this Agreement shall be in writing and shall be deemed to have been duly
given when delivered or mailed by certified or registered mail, return receipt
requested, postage prepaid, addressed to the respective addresses set forth
below:

 

	
  To the Bank: 

  	
  Secretary

  
	
   

  	
  First National Bank of Marysville

  
	
   

  	
  101 Lincoln St

  
	
   

  	
  Marysville, Pennsylvania 17053~00 17

  

 

 

To the Executive:

 

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

 

8.11                           Reorganization.  The
Corporation shall not merge or consolidate into or with another company, or
reorganize, or sell substantially all of its assets to another company, firm or
person unless such succeeding or continuing company, firm or person agrees to
assume and discharge the obligations of the Corporation hereunder.

 

8.12                           Tax Withholding.  The
Bank shall withhold any taxes that are required to be withheld from the
benefits provided under this Agreement.

 

8.13                           Nature of Obligations. 
Except as described in Section 2.6, nothing contained herein shall
create or require the Bank to create a trust of any kind to fund any benefits
which may be payable hereunder, and to the extent that the Executive acquires a
right to receive benefits from the Bank hereunder, such right shall be no
greater than the right of any unsecured general creditor of the Bank.

 

8.14                           Headings.  The section
headings contained in this Agreement are for reference purposes only and shall
not affect in any way the meaning or interpretation of this Agreement.

 

8.15                           Validity.  The
invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provisions of this
Agreement, which shall remain in full force and effect.

 

8.16                           Counterparts.  This
Agreement may be executed in one or more counterparts, each off which shall be
deemed to be an original but all of which together will constitute one and the
same instrument.

 

8.17                           Regulatory Prohibition. 
Notwithstanding any other provision of this Agreement to the contrary,
any payments made to the Executive pursuant to this Agreement, or otherwise,
are subject to and conditioned upon their compliance with Section 18(k) of
the FDIA(12 U.S.C. §1828(k)) and any regulations promulgated thereunder.

 

 

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

 

	
  EXECUTIVE:

  	
   

  	
   

  
	
   

  	
   

  	
  BANK:

  
	
   

  	
   

  	
  FIRST NATIONAL BANK OF

  
	
   

  	
   

  	
  MARYSVILLE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
                 /s/
  William Hummel 

  	
   

  	
  By

  	
          /s/  Robert B. Weidler, Jr.

  
	
  William Hummel

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title

  	
      CFO

  
						

 

By execution hereof, First Perry Bancorp, Inc. consents to and
agrees to be bound by the terms and conditions of this Agreement.

 

	
  ATTEST:

  	
   

  	
  CORPORATION:

  
	
   

  	
   

  	
  FIRST PERRY BANCORP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
                 /s/
  Darlene L. Wright 

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title

  	
     Senior Vice-President

  
						

 

 

BENEFICIARY DESIGNATION

 

FIRST NATIONAL BANK OF MARYSVILLE

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
AGREEMENT

 

William Hummel

 

I designate the following as beneficiary of any death benefits under
the Supplemental Executive Retirement Agreement:

 

Primary:                                                     Cheryl
A. Hummel, Wife

 

Contingent:                                 Christine
M. Hummel Ratkaj – daughter

 

Emily R. Hummel – daughter

 

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 filing
a new written designation with the Bank. 
I further understand that the designations will be automatically revoked
if the beneficiary predeceases me, or, if I have named my spouse as
beneficiary, in the event of the dissolution of our marriage.

 

	
  Signature

  	
   

  	
  /s/ William Hummel

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date 

  	
   

  	
  1/23/2003

  	
   

  
					

 

 

Accepted by the Bank this 24th day of January, 2003.

 

 

	
  By

  	
   

  	
  /s/ Robert B. Weidler, Jr.

  	
   

  
	
   

  	
   

  	
   

  
	
  Title

  	
   

  	
  CFO

  	
   

  
					

 

 

SCHEDULE A

 

FIRST NATIONAL BANK OF MARYSVILLE

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN AGREEMENT

 

SUMMARY OF BENEFITS

 

William Hummel

 

	
  Date

  	
   

  	
  Attained 

  Age

  	
   

  	
  Accrued 

  Benefit

  	
   

  	
  Vesting 

  Schedule

  	
   

  	
  Vested 

  Accrued 

  Benfit

  	
   

  	
  Early 

  Termination 

  Annual 

  Benefit 

  (2)

  	
   

  	
  Disability 

  Annual 

  Benefit 

  (1)

  	
   

  	
  Change 

  in 

  Control 

  Annual 

  Benefit 

  (2)

  	
   

  	
  Pre- 

  Retirement 

  Annual 

  Death 

  Benefit 

  (3)

  	
   

  
	
  12-31-03

  	
   

  	
  56

  	
   

  	
  $

  	
  18,715

  	
   

  	
  100.00

  	
  %

  	
  $

  	
  18,715

  	
   

  	
  $

  	
  2,571

  	
   

  	
  $

  	
  1,731

  	
   

  	
  $

  	
  14,441

  	
   

  	
  $

  	
  14,441

  	
   

  
	
  12-31-04

  	
   

  	
  57

  	
   

  	
  $

  	
  38,784

  	
   

  	
  100.00

  	
  %

  	
  $

  	
  38,784

  	
   

  	
  $

  	
  4,969

  	
   

  	
  $

  	
  3,587

  	
   

  	
  $

  	
  14,441

  	
   

  	
  $

  	
  14,441

  	
   

  
	
  12-31-05

  	
   

  	
  58

  	
   

  	
  $

  	
  60,303

  	
   

  	
  100.00

  	
  %

  	
  $

  	
  60,303

  	
   

  	
  $

  	
  7,205

  	
   

  	
  $

  	
  5,578

  	
   

  	
  $

  	
  14,441

  	
   

  	
  $

  	
  14,441

  	
   

  
	
  12-31-06

  	
   

  	
  59

  	
   

  	
  $

  	
  83,377

  	
   

  	
  100.00

  	
  %

  	
  $

  	
  83,377

  	
   

  	
  $

  	
  9,290

  	
   

  	
  $

  	
  7,712

  	
   

  	
  $

  	
  14,441

  	
   

  	
  $

  	
  14,441

  	
   

  
	
  12-31-07

  	
   

  	
  60

  	
   

  	
  $

  	
  108,120

  	
   

  	
  100.00

  	
  %

  	
  $

  	
  108,120

  	
   

  	
  $

  	
  11,234

  	
   

  	
  $

  	
  10,001

  	
   

  	
  $

  	
  14,441

  	
   

  	
  $

  	
  14,441

  	
   

  
	
  12-31-08

  	
   

  	
  61

  	
   

  	
  $

  	
  134,651

  	
   

  	
  100.00

  	
  %

  	
  $

  	
  134,651

  	
   

  	
  $

  	
  13,048

  	
   

  	
  $

  	
  12,455

  	
   

  	
  $

  	
  14,441

  	
   

  	
  $

  	
  14,441

  	
   

  
	
  09-21-08

  	
   

  	
  62

  	
   

  	
  $

  	
  155,801

  	
   

  	
  100.00

  	
  %

  	
  $

  	
  155,801

  	
   

  	
  $

  	
  14,441

  	
   

  	
  $

  	
  14,411

  	
   

  	
  $

  	
  14,441

  	
   

  	
  $

  	
  14,441

  	
   

  

 

(1)  Payments commence at termination of
employment and are payable to the Executive or his beneficiary in equal monthly
installments for 20 years.  Refer to Section 2.3
for Disability

 

(2)  Payments commence at Normal
Retirement Age and are payable to the Executive or his beneficiary in equal
monthly installments for 20 years.  Refer
to Section 2.2, for Early Termination and Section 2.4 for Change in
Control.

 

(3)  Payments commence within 60 days of
receipt by the Bank of the Executive’s death certificate and are to be made to
the named beneficiary in equal monthly installments for 20 years.  Refer to Section 3.1.1.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00148-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00148-of-00352.parquet"}]]