Document:

EXHIBIT 10.5
                                       (C)

THIS DOCUMENT IS PROVIDED TO ASSIST YOUR LEGAL COUNSEL IN DOCUMENTING YOUR
SPECIFIC ARRANGEMENT. IT IS NOT A FORM TO BE SIGNED, NOR IS IT TO BE CONSTRUED
AS LEGAL ADVICE. FAILURE TO ACCURATELY DOCUMENT YOUR ARRANGEMENT COULD RESULT IN
SIGNIFICANT LOSSES, WHETHER FROM CLAIMS OF THOSE PARTICIPATING IN THE
ARRANGEMENT, FROM THE HEIRS AND BENEFICIARIES OF PARTICIPANTS, OR FROM
REGULATORY AGENCIES SUCH AS THE INTERNAL REVENUE SERVICE AND THE DEPARTMENT OF
LABOR. LICENSE IS HEREBY GRANTED TO YOUR LEGAL COUNSEL TO USE THESE MATERIALS IN
DOCUMENTING SOLELY YOUR ARRANGEMENT.

                           ADAMS COUNTY NATIONAL BANK

                    DIRECTOR SUPPLEMENTAL LIFE INSURANCE PLAN

        THIS AGREEMENT, hereby made and entered into this day  1st of January,
2001, by and between Adams County National Bank, a Bank located in Gettysburg,
Pennsylvania (the "Company") and the Director selected to participate in this
Plan.

                                  INTRODUCTION

        The Company wishes to attract and retain highly qualified Directors. To
further this objective, the Company is willing to divide the death proceeds of
certain life insurance policies which are owned by the Company on the lives of
the participating Directors with the designated beneficiary of each insured
participating Director. The Company will pay life insurance premiums from its
general assets.

                                    ARTICLE 1

                               GENERAL DEFINITIONS

The following terms shall have the meanings specified:

        1.1 "COMPENSATION COMMITTEE" means either the Compensation Committee
designated from time to time by the Company's Board of Directors or a majority
of the Company's Board of Directors, either of which shall hereinafter be
referred to as the Compensation Committee.

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        1.2 "DISABILITY" means the Director's inability to perform substantially
all normal duties of a Participant, as determined by the Company's Board of
Directors in its sole discretion. As a condition to any benefits, the Company
may require the Director to submit to such physical or mental evaluations and
tests, as the Board of Directors deems appropriate.

        1.3   "INSURED" means the individual whose life is insured.

        1.4   "INSURER" means the insurance company issuing the life insurance
policy on the life of the insured.

        1.5 "PARTICIPANT" means the Director who is designated by the
Compensation Committee as eligible to participate in the Plan, elects in writing
to participate in the Plan using the form attached hereto as Exhibit A, and
signs a Split Dollar Endorsement for the Policy in which he or she is the
Insured.

        1.6 "POLICY" or "POLICIES" means the individual insurance policy (or
policies) adopted by the Compensation Committee for purposes of insuring a
Participant's life under this Plan.

        1.7   "PLAN" means this instrument, including all amendments thereto.

        1.8 "TERMINATED FOR CAUSE" means that the Company has terminated the
Insured's duties for any of the following reasons:

              1.8.1     Gross negligence or gross neglect of duties;

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

            1.8.3 Fraud, disloyalty, dishonesty or willful violation of any law
        or significant Company policy committed in connection with the
        Director's duties.

                                       2

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                                    ARTICLE 2

                                  PARTICIPATION

        2.1 ELIGIBILITY TO PARTICIPATE. The Compensation Committee in its sole
discretion shall designate from time to time Directors that are eligible to
participate in this Plan.

       2.2 PARTICIPATION. The eligible Director may participate in this Plan by
executing an Election to Participate and a Split Dollar Endorsement. The Split
Dollar Endorsement shall bind the Director and his or her beneficiaries, assigns
and transferees, to the terms and conditions of this Plan. A Director's
participation is limited to only Policies where he or she is the Insured.
Exhibit B attached hereto sets forth the original Participants and their
corresponding Policies.

        2.3 TERMINATION OF PARTICIPATION. A Participant's rights under this Plan
shall cease and his or her participation in this Plan shall terminate if the
Director is terminated for Cause.

        In the event that the Company decides to maintain the Policy after the
Participant's termination of participation in the Plan, the Company shall be the
direct beneficiary of the entire death proceeds of the Policy.

                                    ARTICLE 3

                           POLICY OWNERSHIP/INTERESTS

       3.1 PARTICIPANT'S INTEREST. With respect to each Policy, the Participant,
or the Participant's assignee, shall have the right to designate the beneficiary
of an amount of death proceeds equal to: $100,000.

        3.2 COMPANY'S INTEREST. The Company shall own the Policies and shall
have the right to exercise all incidents of ownership. With respect to each
Policy, the Company shall be the direct beneficiary of the remaining (after the
Participant's Interest is determined) death proceeds of the Policy.

                                        3

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                                    ARTICLE 4

                                    PREMIUMS

       4.1 PREMIUM PAYMENT. The Company shall pay all premiums due on all
Policies.

        4.2 IMPUTED INCOME. The Company shall impute income to the Participant
in an amount equal to the current term rate for the Participant's age multiplied
by the aggregate death benefit payable to the Participant's beneficiary. The
"current term rate" is the minimum amount required to be imputed under Revenue
Rulings 64-328 and 66-110, or any subsequent applicable authority.

                                    ARTICLE 5

                                   ASSIGNMENT

        Any Participant may assign without consideration all interests in his or
her Policy and in this Plan to any person, entity or trust. In the event a
Participant shall transfer all of his/her interest in the Policy, then all of
that Participant's interest in his or her Policy and in the Plan shall be vested
in his/her transferee, who shall be substituted as a party hereunder, and that
Participant shall have no further interest in his or her Policy or in this Plan.

                                    ARTICLE 6

                                     INSURER

        The Insurer shall be bound only by the terms of their corresponding
Policy. Any payments the Insurer makes or actions it takes in accordance with a
Policy shall fully discharge it from all claims, suits and demands of all
persons relating to that Policy. The Insurer shall not be bound by the
provisions of this Plan. The Insurer shall have the right to rely on the
Company's representations with regard to any definitions, interpretations, or
Policy interests as specified under this Plan.

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                                    ARTICLE 7

                                CLAIMS PROCEDURE

        7.1 CLAIMS PROCEDURE. The Company shall notify any person or entity that
makes a claim against this Plan (the "Claimant"), in writing, within ninety (90)
days of Claimant's written application for benefits, of Claimant's eligibility
or ineligibility for benefits under this Plan. If the Company determines that
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 this Plan 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 this Plan'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
Company determines that there are special circumstances requiring additional
time to make a decision, the Company 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.

        7.2 REVIEW PROCEDURE. If a Claimant is determined by the Company 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 Company by filing a petition for review with the
Company within sixty (60) days after receipt of the notice issued by the
Company. 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 Company of the petition, the Company
shall afford the Claimant (and counsel, if any) an opportunity to present
Claimant's position to the Company verbally or in writing, and the Claimant (or
counsel) shall have the right to review the pertinent documents. The Company
shall notify the Claimant of its 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 this
Plan 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 Company, but notice of this
deferral shall be given to the Claimant.

                                    ARTICLE 8

                           AMENDMENTS AND TERMINATION

        This Agreement may be amended or terminated at the discretion of the
bank. However, each Participant shall be entitled to the benefits in Section 3.1
at the date of termination of the Plan.

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                                    ARTICLE 9

                                  MISCELLANEOUS

        9.1 BINDING EFFECT. This Plan in conjunction with each Split Dollar
Endorsement shall bind each Participant and the Company, their beneficiaries,
survivors, executors, administrators and transferees and any Policy beneficiary.

        9.2 NO GUARANTEE OF EMPLOYMENT. This Plan is not an employment policy or
contract. It does not give a Participant the right to remain a Director of the
Company, nor does it interfere with the Company's right to discharge a
Participant. It also does not require a Participant to remain a Director nor
interfere with a Participant's right to terminate at any time.

        9.3 REORGANIZATION. The Company 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 Company
under this Agreement.

        9.4 NAMED FIDUCIARY. For purposes of the Employee Retirement Income
Security Act of 1974, if applicable, the Company shall be the named fiduciary
and plan administrator under the Agreement. The named fiduciary may delegate to
others certain aspects of the management and operation responsibilities of the
plan including the employment of advisors and the delegation of ministerial
duties to qualified individuals.

        9.5 APPLICABLE LAW. The Plan and all rights hereunder shall be governed
by and construed according to the laws of the State of Pennsylvania, except to
the extent preempted by the laws of the United States of America.

        9.6 NOTICE. Any notice, consent or demand required or permitted to be
given under the provisions of this Plan by one party to another shall be in
writing, shall be signed by the party giving or making the same, and may be
given either by delivering the same to such other party personally, or by
mailing the same, by United States certified mail, postage prepaid, to such
party, addressed to his/her last known address as shown on the records of the
Company. The date of such mailing shall be deemed the date of such mailed
notice, consent or demand.

        9.7 ENTIRE AGREEMENT. This Plan constitutes the entire agreement between
the Company and the Participant as to the subject matter hereof. No rights are
granted to the Participant by virtue of this Plan other than those specifically
set forth herein.

        9.8 ADMINISTRATION The Company shall have powers which are necessary to
administer this Plan, including but not limited to:

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            9.8.1 Interpreting the provisions of the Plan;

            9.8.2 Establishing and revising the method of accounting for the
        Plan;

            9.8.3 Maintaining a record of benefit payments; and

            9.8.4 Establishing rules and prescribing any forms necessary or
        desirable to administer the Plan.

        IN WITNESS WHEREOF, the Company executes this Plan as of the date
indicated above.

                                    COMPANY:

                                       Adams County National Bank

                                       BY:  /s/ Thomas A. Ritter
                                            -----------------------------

                                               TITLE    President
                                                     ---------------------------

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                                    EXHIBIT A

                             ELECTION TO PARTICIPATE

         I, ______________________________________, an eligible Participant of
the Adams County National Bank Director Supplemental Life Insurance Plan (the
"Plan") dated ____________________ 2000, hereby elect to become a Participant of
the Plan.

        Executed this                         day of               , 2000
                      -----------------------        --------------

--------------------------                    -----------------------------
Witness                                       Participant

                                        8

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                                    EXHIBIT B

                              LIST OF PARTICIPANTS

PARTICIPANT'S NAME                      INSURER                    POLICY NUMBER

                                        9

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                         SPLIT DOLLAR POLICY ENDORSEMENT

Policy No. ____________________                    Insured: ____________________

Supplementing and amending the application of Adams County National Bank on
____________________ , 2000 to ("Insurer"), the applicant requests and directs
that:

                                  BENEFICIARIES

          1. The beneficiary designated by the Insured, or his/her transferee
shall be the beneficiary of: $100,000.

          2. The beneficiary of any remaining death proceeds shall be Adams
County National Bank, a banking association located in Gettysburg, Pennsylvania
(the "Company").

                                    OWNERSHIP

          3. The Owner of the policy shall be the Company. The Owner shall have
all ownership rights in the Policy except as may be specifically granted to the
Insured or his/her transferee in paragraph (4) of this endorsement.

          4. The Insured or his/her transferee shall have the right to assign
all rights and interests in the policy with respect to that portion of the death
proceeds designated in paragraph (1) of this endorsement, and to exercise all
settlement options with respect to such death proceeds.

               MODIFICATION OF ASSIGNMENT PROVISIONS OF THE POLICY

Upon the death of the Insured, the interest of any collateral' assignee of the
Owner of the policy designated in paragraph (3) above shall be limited to the
portion of the proceeds described in paragraph (2) above.

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                                OWNERS AUTHORITY

The Insurer is hereby authorized to recognize the Owner's claim to rights
hereunder without investigating the reason for any action taken by the Owner,
including its statement of the amount of premiums it has paid on the policy. The
signature of the Owner shall be sufficient for the exercise of any rights under
this Endorsement and the receipt of the Owner for any sums received by it shall
be a full discharge and release to the Insurer. Any transferee's rights shall be
subject to this Endorsement.

Signed at ________________,  Pennsylvania, this ____ day of _____________ , 2000

COMPANY

          Adams County National Bank

         By____________________________

          Its___________________________

Acceptance and Beneficiary Designation

The Insured accepts and agrees to the foregoing and, subject to the rights of
the Owner as stated above, designates ______________________________ as direct
beneficiary and __________________________ as contingent beneficiary of the
portion of the proceeds described in paragraph (1) above.

Signed at ________________,  Pennsylvania, this ____ day of _____________ , 2000

INSURED

-------------------------------

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                                       11EXHIBIT 10.6

                           ADAMS COUNTY NATIONAL BANK

                         DIRECTOR DEFERRED FEE AGREEMENT

          THIS AGREEMENT is made this 1st day of January, 2001, by and between
Adams County National Bank, located in Gettysburg, Pennsylvania (the "Company"),
and __________ (the "Director").

                                  INTRODUCTION

        In an effort to reward past service, encourage continued service on the
Company's Board of Directors, and as a method to attract future Directors, the
Company is willing to provide to the Director a deferred fee opportunity. The
Company will pay each Director's benefits from the Company's general assets.

                                    AGREEMENT

        The Director and the Company 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 "ANNIVERSARY DATE" means December 31 of each year.

                1.1.2 "CHANGE OF CONTROL" of the Company shall mean: (i) an
        event of a nature that results in a Change in Control of the Company
        within the meaning of the Home Owners' Loan Act, as amended (or any
        successor legislation), and applicable rules and regulations promulgated
        thereunder or under the Change in Bank Control Act, by the Office of
        Thrift Supervision ("OTS") (or any successor agency) as in effect at the
        time of the Change in Control; or (ii) the election to the Board of
        Directors of the Company of any person who was not nominated for such
        election by the Board or by a nominating committee of the Board prior to
        his or her election; or (iii) the merger of the Company with any other
        entity, or the acquisition of all or substantially all of the assets of
        the Company by another entity (in either case other than pursuant to an
        involuntary merger or consolidation mandated by any governmental agency
        then having jurisdiction over the Company), to which transaction the
        Director has not consented.

        A Change of Control shall also mean an event of a nature that: (i) would
        be required to be reported in response to Item 1(a) of the current
        report on Form 8-K, as in effect on the date hereof, pursuant to Section
        13 or 15(D) of the Securities Exchange Act of 1934 (the "Exchange Act");
        or (ii) results in a Change of Control of the Company or the Holding

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Company within the meaning of the Home Owners' Loan Act and the Rules and
Regulations promulgated by the OTS (or its predecessor agency), as in effect on
the date hereof; or (iii) without limitation such a Change of Control shall be
deemed to have occurred at such time as (a) any "Person" (as the term is used in
Sections 13(d) and 14(d) of the Exchange Act) is or becomes the "beneficial
owner" (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Company or the Holding Company representing 25%
or more of the Company's or the Holding Company's outstanding securities except
for any securities of the Company purchased by the Holding Company in connection
with the conversion of the Company to the stock form and any securities
purchased by the Company's employee stock ownership plan and trust; (b) a proxy
statement soliciting proxies from stockholders of the Company or Holding
Company, by someone other than the current management of the Company or Holding
Company, seeking stockholder approval of a plan of reorganization, merger or
consolidation of the Company or Holding Company or similar transaction with one
or more corporations as a result of which the outstanding shares of the class of
securities then subject to such plan or transaction are exchanged for or
converted into cash or property or securities not issued by the Company or the
Holding Company shall be distributed and the requisite number of proxies
approving such plan of reorganization, merger or consolidation of the Company or
Holding Company are received and voted in favor of such transactions; or (c) a
tender offer is made for 25 % or more of the outstanding securities of the
Company or Holding Company and shareholders owning beneficially or of record 25
% or more of the outstanding securities of the Company or Holding Company have
tendered or offered to sell their shares pursuant to such tender offer and such
tendered shares have been accepted by the tender offeror.

        1.1.3   "CODE" means the Internal Revenue Code of 1986, as amended.

        1.1.4 "DEFERRAL ACCOUNT" means the Company's accounting of the
Director's accumulated Deferrals plus accrued interest.

        1.1.5 "DEFERRALS" means the amount of the Director's Fees which the
Director elects to defer according to this Agreement.

        1.1.6 "DISABILITY" means the Director's inability to perform
substantially all normal duties of a Director, as determined by the Company's
Board of Directors in its sole discretion. As a condition to any benefits, the
Company may require the Director to submit to such physical or mental
evaluations and tests as the Board of Directors deems appropriate

        1.1.7   "EFFECTIVE DATE" means the date of this Agreement.

        1.1.8    "ELECTION FORM." means the Form attached as Exhibit 1.

        1.1.9    "FEES" means the total Director's fees payable to the Director.

                                        2

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              1.1.10   "PLAN YEAR" means the calendar year.

              1.1.11 "PRIME RATE" means the Prime Interest Rate reported in the
        Wall Street Journal on the business day immediately prior to the plan
        Anniversary Date.

              1.1.12 "TERMINATION OF SERVICE" means the Director ceasing to be a
        member of the Company's Board of Directors for any reason whatsoever.

                                    ARTICLE 2
                                DEFERRAL ELECTION

      2.1 INITIAL ELECTION. The Director shall make an initial deferral election
under this Agreement by filing with the Company a signed Election Form within
thirty (30) days after the Effective Date of this Agreement. The Election Form
shall set forth the amount of Fees to be deferred. The Election Form shall be
effective to defer only Fees earned after the date the Election Form is received
by the Company.

      2.2  ELECTION. CHANGES

              2.2.1 GENERALLY. The Director may modify the amount of Fees to be
      deferred annually by filing a new Election Form with the Company prior to
      the beginning of the Plan Year in which the Fees are to be deferred. The
      modified deferral election shall not be effective until the calendar year
      following the year in which the subsequent Election Form is received and
      approved by the Company. The new Election Form may be used to change the
      Director's distribution option; however, the change shall not be effective
      before the first day of the Plan Year immediately following the date that
      the Election Form was executed.

                2.2.2 HARDSHIP. 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,
      by written instructions to the Company, may reduce future deferrals under
      this Agreement.
                                    ARTICLE 3
                                DEFERRAL ACCOUNT

        3.1 ESTABLISHING AND CREDITING. The Company 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. On the first day of each month and immediately
        prior to the payment of any benefits, interest on the account balance
        since the preceding credit under this Section 3.1.3, if any,
        at an annual rate, compounded monthly, equal to the Prime Rate for
        the previous Anniversary Date. HOWEVER, THE ACTUAL

                                        3

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        CREDITING  RATE WILL EQUAL THE PRIME RATE UNLESS  PRIME IS LESS THAN
        SIX  (6%) OR  GREATER  THAN  TWELVE  (12%).  IN WHICH  CASE THE  MAXIMUM
        CREDITING RATE SHALL BE TWELVE (12%) AND THE MINIMUM SHALL BE SIX (6%).

            3.2  STATEMENT  OF  ACCOUNTS.  The  Company  shall  provide  to  the
        Director,  within one hundred  twenty (120) days after each  Anniversary
        Date, a statement setting forth the Deferral Account balance.

        3.3 ACCOUNTING DEVICE 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
Company for the payment of benefits. The benefits represent the mere Company
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
                            DISTRIBUTION OF BENEFITS

        4.1 TERMINATION OF SERVICE BENEFIT. Upon the participants termination of
service Date, the Company 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 Director's Termination of Service Date.

              4.1.2 PAYMENT OF BENEFIT. The Company shall pay the benefit to the
        Director in the form elected by the Director on the Election Form. If
        the Director elected to receive his benefit in the form of installments,
        the Company shall continue to credit interest on the remaining account
        balance during any applicable installment period fixed at the rate in
        effect under Section 3.1.2 on the Director's Retirement Date. HOWEVER,
        THIS FIXED RATE SHALL NOT BE GREATER THAN (9.00%).

        4.2  PRE-TERMINATION  OF SERVICE BENEFIT.  THE PARTICIPANT SHALL HAVE A
ONE-TIME OPTION TO RECEIVE BENEFIT PAYMENTS PRIOR THEIR TERMINATION OF SERVICE.
HOWEVER, THE DIRECTOR SHALL NOT HAVE THE ABILITY TO DEFER FUTURE COMPENSATION.

            4.2.1 AMOUNT OF BENEFIT.  THE BENEFIT  UNDER THIS SECTION 4.2 IS THE
        DEFERRAL  ACCOUNT  BALANCE  ON THE DATE THE  DIRECTOR  ELECTS TO RECEIVE
        BENEFIT PAYMENTS.

            4.2.2 PAYMENT OF BENEFIT. THE COMPANY SHALL PAY THE BENEFIT TO THE
        DIRECTOR IN THE FORM ELECTED BY THE DIRECTOR ON THE ELECTION FORM. IF
        THE DIRECTOR ELECTED TO RECEIVE HIS BENEFIT. IN THE FORM OF
        INSTALLMENTS, THE COMPANY SHALL CONTINUE TO CREDIT INTEREST ON THE
        REMAINING ACCOUNT BALANCE DURING ANY APPLICABLE

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        INSTALLMENT PERIOD FIXED AT THE RATE IN EFFECT UNDER SECTION 3.1.2ON
        THE DIRECTOR'S  RETIREMENT.  DATE. HOWEVER, THIS FIXED RATE SHALL NOT BE
        GREATER THAN (9.00%).

        4.3 CHANGE F CONTROL BENEFIT.  UPON TERMINATION OF SERVICE WITHIN 12
MONTHS OF A CHANGE OF CONTROL,  THE COMPANY 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 SHALL BE
        THE DEFERRAL ACCOUNT ON THE TERMINATION OF SERVICE.

            4.3.2 PAYMENT  OF BENEFIT.  THE COMPANY SHALL PAY THE BENEFIT TO THE
        DIRECTOR IN THE FORM OF A LUMP SUM PAYMENT.  THIS LUMP-SUM PAYMENT SHALL
        OCCUR WITHIN 30 DAYS AFTER THE DATE OF TERMINATION OF SERVICE.

       4.4 HARDSHIP DISTRIBUTION. Upon the Board of Director's determination
(following petition by the Director) that the Director has suffered an
unforeseeable financial emergency as described in Section 2.2.2, the Company
shall distribute to the Director all or a portion of the Deferral Account
balance as determined by the Company, but in no event shall the distribution be
greater than is necessary to relieve the financial hardship.

                                    ARTICLE 5
                                 DEATH BENEFITS

        5.1 DEATH DURING ACTIVE SERVICE. If the Director dies while in the
active service of the Company, the Company 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 under Section 5.1 is the
        Account balance on the date of the Director's death.

              5.1.2 PAYMENT OF BENEFIT. The Company shall pay the benefit to the
        beneficiary in the form elected by the Director on the Election Form. If
        the Director elected to receive his benefit in the form of installments,
        the Company shall continue to credit interest on the remaining account
        balance during any applicable installment period fixed at the rate in
        effect under Section 3.1.2 on the date of the Director's death. HOWEVER,
        THIS FIXED RATE SHALL NOT BE GREATER THAN (9.00%).

        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 Company 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.

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                                    ARTICLE 6
                                  BENEFICIARIES

        6.1 BENEFICIARY DESIGNATIONS. The Director shall designate a beneficiary
by filing a written designation with the Company. 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 Company 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 Company 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 Company 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 Company from all
liability with respect to such benefit.

                                    ARTICLE 7
                          CLAIMS AND REVIEW PROCEDURES

       7.1 CLAIMS PROCEDURE. The Company shall notify any person or entity that
makes a claim against the Agreement (the "Claimant") in writing, within ninety
(90) days of his or her written application for benefits, of his or her
eligibility or non-eligibility for benefits under the Agreement. If the Company
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 his or her 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 Company determines that there are special circumstances
requiring additional time to make a decision, the Company 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.

        7.2 REVIEW PROCEDURE. If the Claimant is determined by the Company not
to be eligible for benefits, or if the Claimant believes that he or she is
entitled to greater or different benefits, the Claimant shall have the
opportunity to have such claim reviewed by the Company by filing a petition for
review with the Company within sixty (60) days after receipt of the notice
issued by the Company. Said petition shall state the specific reasons which the
Claimant believes entitle him or her to benefits or to greater or different
benefits. Within sixty (60) days after receipt by the Company of the petition,
the Company shall afford the Claimant (and counsel, if any) an opportunity to
present his or her position to the Company orally or in writing, and the
Claimant (or counsel) shall have the right to review the pertinent documents.
The Company shall notify the Claimant of its decision in writing within the
sixty-day
                                        6

<page>

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 Company, but notice of this
deferral shall be given to the Claimant.

                                    ARTICLE 8
                           AMENDMENTS AND TERMINATION

        8.1 This Agreement may be amended or terminated only by a written
agreement signed by the Company and the Director.

        8.2 Notwithstanding Section 8.1, the Company may amend or terminate this
Agreement at any time if, pursuant to legislative, judicial or regulatory
action, continuation of the Agreement would (i) cause benefits to be taxable to
the Director prior to actual receipt, or (ii) result in significant financial
penalties or other significantly detrimental ramifications to the Company (other
than the financial impact of paying the benefits). In no event shall this
Agreement be terminated under this Section 8.2 without payment to the Director
of the Deferral Account balance attributable to the Director's Deferrals and
interest credited on such amounts.

                                    ARTICLE 9
                                  MISCELLANEOUS

       9. 1 BINDING EFFECT. This Agreement shall bind the Director and the
Company, and their beneficiaries, survivors, executors, administrators and
transferees.

       9.2 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
Company. It also does not require the Director to remain a Director nor
interfere with the Director's right to terminate services at any time.

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

       9.4 TAX WITHHOLDING. The Company shall withhold any taxes that are
required to be withheld from the benefits provided under this Agreement TAX
WITHHOLDING. The Company shall withhold any taxes that are required to be
withheld from the benefits provided under this Agreement

       9.5 APPLICABLE LAW. The Plan and all rights hereunder shall be governed
by and construed according to the laws of Pennsylvania, except to the extent
preempted by the laws of the United States of America.

                                       7
<page>

        9.6 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 Company for a lump sum payment in an amount not to exceed the
beneficiary's liability hereunder.

        9.7 UNFUNDED ARRANGEMENT. The Director and the Director's beneficiary
are general unsecured creditors of the Company for the payment of benefits under
this Agreement. The benefits represent the mere promise by the Company 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 Company to which the Director and the Director's
beneficiary have no preferred or secured claim.

        9.8 REORGANIZATION. The Company 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 Company
under this Agreement.

        9.9 ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
between the Company and the Director as to the subject matter hereof. No rights
are granted to the Director by virtue of this Agreement other than those
specifically set forth herein.

        9.10 ADMINISTRATION. The Company shall have powers which are necessary
to administer this Agreement, including but not limited to:

              9.10.1    Interpreting the provisions of the Agreement;

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

            9.10.3 Maintaining a record of benefit payments; and

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

        9.11   NAMED FIDUCIARY. For purposes of the Employee Retirement Income
Security Act of 1974, if  applicable,  the Company shall be the named  fiduciary
and plan administrator under the Agreement.  The named fiduciary may delegate to
others certain aspects of the management and operation  responsibilities  of the
plan  including  the  employment of advisors and the  delegation of  ministerial
duties to qualified individuals.

                                        8

<page>

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

DIRECTOR:                                      COMPANY:

                                               ADAMS COUNTY NATIONAL BANK

                                              BY    /S/ THOMAS A. RITTER
---------------------------------------       ----------------------------------

                                              TITLE    PRESIDENT
                                              ----------------------------------

                                        9

<page>

                           ADAMS COUNTY NATIONAL BANK

                                    EXHIBIT I
                                       TO
                         DIRECTOR FEE DEFERRAL AGREEMENT
                                DEFERRAL ELECTION
                                       for

         I elect to defer compensation under my Director Fee Deferral Agreement
with the Bank, as follows:

                               AMOUNT OF DEFERRAL

           [INITIAL AND COMPLETE]
            ___ I elect to defer ______% or $_____ of my Retainer and Board Fees

            ___ I elect not to defer my Retainer and Board Fees

                    I understand that I may change the amount, frequency and
                    duration of my deferral by filing a new election form with
                    the Bank; provided, however, that any subsequent election
                    will not be effective until the calendar year following the
                    year in which the new election is received by the Bank.

                                 Form of Benefit

                    I elect to receive benefits under the Agreement in the
                    following form:

                    [INITIAL ONE]

                    ______ Lump Sum

                    ______ Equal monthly installments for 120 months

                                       10

<page>

                           ADAMS COUNTY NATIONAL BANK

                             BENEFICIARY DESIGNATION

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

                  Primary:
                           --------------------------------------------

                  Contingent:
                               ----------------------------------------

                  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 Adams County National Bank this day of, 2001.

                  By     ____________________________________

                  Title  ____________________________________

                                       11

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