Document:

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                                                                   EXHIBIT 10.11

                              EMPLOYMENT AGREEMENT

    This Agreement made as of the 1st day of September, 2000, by and between M&W
AGENCY, INC., hereinafter referred to as the "Employer", EVANS NATIONAL BANK, a
national banking corporation with offices at 14-16 North Main Street, Angola,
New York, hereinafter referred to as the "Bank", and, ROBERT G. MILLER, JR..,
hereinafter referred to as the "Employee," for the employment of Employee by the
Employer.

1.  TERM OF EMPLOYMENT: Unless terminated pursuant to the terms of this
    Agreement, the Employer and Employee agree that the term of employment shall
    be for a period commencing on the date of this Agreement and terminating
    December 31, 2005 and continuing year to year thereafter.

2.  COMPENSATION: Employee shall receive, in exchanges for his services,
    hereunder, compensation as follows:

    (A)Base Salary of $150,000.00 annually, subject to such increases as may be
    approved from time to time by the Board of Directors of Employer, with the
    consent of the Board of Directors of the Bank;

    (B)In addition to the base salary, Employee will receive an annual bonus for
    years after 2001 equal to 25% of the first $400,000.00 of EBIT in excess of
    the annual Target Amount (maximum annual incentive bonus of $100,000.00).
    "EBIT" shall mean the annual net income before interest and income taxes for
    the Employer as determined annually by the certified public accountants of
    the Bank, in accordance with generally accepted accounting principles,
    consistently applied. The Annual Target Amounts will be as follows:

        2002     -     $606,650.00
        2003     -     $667,315.00
        2004     -     $734,046.00
        2005     -     $807,451.00

    For the year 2001, Employee will receive a special $25,000.00 bonus for the
    year 2001 only if the EBIT of the Employer is greater than $450,000.00 or
    less than $651,500.00. If EBIT for the year 2001 is greater than
    $651,500.00, the bonus will be $25,000 plus 25% of the first $300,000.00 of
    EBIT in excess of $651,500.00.

    The bonus shall be payable within 30 days after the accountants of the Bank
    issue their report on the consolidated financial statements of the Bank for
    such year.

3.  DUTIES:

    (A)During the term of his employment hereunder, Employee agrees to serve as
    President of the Employer and be primarily responsible for the direct
    management of the Employer's resources toward the achievement of strategic
    and financial objectives in a manner which is consistent with Board
    philosophy and policy, and with various regulatory requirements. The
    Employee's primary duties will consist of account servicing, marketing,
    recruiting and training as requested by the Employer and also the
    solicitation, negotiation, placement and procurement of insurance business
    for which the Employer is licensed and authorized to sell. Further, the
    Employee has no authority to bind Employer to any contract unless such
    authority has been given to Employee by Employer's Board of Directors. In
    addition, the Employee shall have such other duties and responsibilities as
    may be reasonably assigned to him from time to time by the Employer.
    Employee also agrees to perform such other services and duties consistent
    with the office or offices in which he is serving and its responsibilities
    as may from time to time be prescribed by the Board of Directors.

    (B)Employee shall also serve as a Director of the Bank and/or of the Evans
    Bancorp, Inc., if appointed or elected.

    (C)Employee shall devote his full time energies and attention, during normal
    business hours (excluding vacation) to the business and affairs of the
    Employer.

    (D)All property and casualty insurance business secured by the Employee will
    be placed through the Employer. The Employee will use his best efforts to
    place all other insurance business (including, but not limited to, life
    insurance products, long-term care or medical insurance products and group
    insurance, annuities and employee benefit plans) secured by him with the
    Employer or its

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    affiliates. All insurance business placed by the Employee with the Employer
    shall be conducted in the name of Employer or its affiliates. If the
    Employee is not able for any reason to place an insurance policy for a life
    insurance product, long-term care or medical insurance product, annuity or
    employee benefit plan with the Employer or its affiliates, the Employee may
    place such policy through another agency provided that such agency has been
    approved in advance in writing by the Employer and on such business shall
    enure to the benefit of the Employer. Notwithstanding the foregoing, the
    Employee shall retain his rights to the employee portion of residual
    commissions earned on life insurance and annuities sold through M&W Group,
    Inc. prior to the date of this Agreement.

    (E)The Employee agrees that during the term of this Agreement, he will
    comply with all regulations and guidelines of the Employer (including the
    Commercial and Personal Lines Work Manuals), will do nothing to jeopardize
    or impair the Employer's insurance licenses, and will comply with all rules
    and regulations of the Insurance Department and the statutes of the State of
    New York or any other state which regulates the business of the Employer,
    pertaining to the insurance business.

    (F)Employee shall maintain any and all licenses and permits required to be
    owned or possessed by him under applicable law (including NASD License) in
    order to perform the duties required by him hereunder. Employee shall keep
    and maintain all of such licenses and permits in full force and effect
    during the term of this Agreement. The Employer will pay any required
    license or permit fees.

    (G)Employee shall, except as otherwise provided herein, be subject to the
    Employer's and/or the Bank's rules, practices and policies applicable to the
    Bank's Executive Employees.

    (H)Employee shall report directly to and be responsible to the Chairman of
    the Bank/Employer.

4.  BENEFITS:

    (A)Employee shall participate in all life, disability and medical insurance
    plans, pensions and other similar plans which the Employer or the Bank may
    have or may establish from time to time, in which Employee is eligible to
    participate pursuant to the terms thereof. The foregoing, however, shall not
    be construed to require the Bank to establish any such plans or to prevent
    the Employer or the Bank from modifying or terminating such plans and no
    such action or failure thereof shall effect this Agreement.

    (B)Employee shall be entitled to vacation as determined by the Board of
    Directors for all Bank Officers, but in no event shall it be less than the
    scheduled vacations and personal days as set forth in the Employee Handbook.

    (C)Employee shall attend such continuing education seminars and obtain
    membership in such organizations as may be reasonably required by the Board;
    provided however, that the Employer shall bear the expenses of such
    activities.

    (D)In addition to all of the above, Employee shall specifically be entitled
    to the following benefits:

    1. Use of a company-owned vehicle, similar to current make and model.

    2. Reimbursement for country club membership currently maintained by the
    Employee.

    3. Group term life insurance: Provided by the Employer at no cost to
    employee - valued at two times annual salary. This plan carries a cap of
    $350,000.00.

    4. Basic Dental Coverage (Preventative): Provided by the Employer at no cost
    to employee - family coverage cost $17.10 per month, or $205.20 per annum.

    5. Health Insurance: In lieu of Health Insurance, Employer agrees to
    purchase a Long Term Health Care Insurance policy covering Employee and his
    spouse at an annual cost not to exceed the current cost to Employer of
    family health insurance coverage.

    6. Employee Retirement Savings Plan (401K): Participation in accordance with
    the provisions of such plan, with the vesting service to include prior
    service with M&W Group, Inc.

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    7. Defined Benefit Pension Plan: In accordance with the provisions of the
    plan. Except that any applicable vesting schedule and waiting period shall
    include periods of employment with M&W Group Insurance, Inc.

5.  WORKING AND OTHER FACILITIES: During the term of this Agreement, Employee
    shall be furnished with such working facilities, secretarial help and other
    services, as are suitable to his position and adequate for the performance
    of his duties.

6.  EXPENSES: The Employer will reimburse Employee for reasonable expenses,
    including travelling expenses, incurred by him in connection with his
    employment in the business of the Bank upon the presentation by Employee of
    appropriate substantiation for such expenses.

7.  CONFIDENTIALITY AND NON-INTERFERENCE: In the course of his employment by the
    Employer, Employee shall have and has had access to confidential or
    proprietary data or information of the Employer. Employee shall not at any
    time, divulge or communicate to any person, nor shall he direct any employee
    to divulge or communicate to any person (other than to a person bound by
    confidentiality obligation similar to those contained herein, and other than
    is necessary in performing his duties hereunder) or used to the detriment of
    the Employer or for the benefit of any other person, any of such data or
    information. The provision of this section shall survive Employee's
    employment hereunder, whether by the normal expiration thereof or otherwise.
    The term "confidential" or "proprietary data or information" as used in this
    Agreement, shall mean information not generally available to the public
    including, without limitation, personnel information, financial information,
    customer lists, computer programs, marketing and advertising data. Employee
    acknowledges and agrees that any confidential or proprietary data or
    information heretofore acquired was received in confidence.

    The Employer and Employee agree that the customer lists, files, records and
    other material relating to the insurance customers of the Employer
    (including Employee Accounts), the trade secrets, operational processes and
    techniques (all of which are hereinafter referred to as the "Confidential
    Information") are valuable and unique assets of the Employer and the
    Employee has no right or interest in such Confidential Information. The
    Employee agrees not to disclose the Confidential Information to any person
    or entity other than to the employees of the Employer and to use the
    Confidential Information solely for the business and benefit of the
    Employer. The Employee also agrees to return all of the Confidential
    Information and all copies thereof to the Employer upon the termination of
    this Agreement. The Employer agrees to use its best efforts to prevent
    disclosure of Confidential Information relating to the Employee Accounts and
    Accounts to any person or entity other than employees of the Employer.

8.  EARLY TERMINATION: Employee's employment hereunder shall terminate prior to
    the expiration of this Agreement or any extensions thereof, on the following
    terms and conditions:

    (A)This Agreement shall terminate automatically on the death of Employee.
    Notwithstanding the foregoing, the Bank shall pay to Employee's estate any
    compensation and reimbursable expenses accrued to the date of his death
    which otherwise would have been paid to the Employee.

    (B)This Agreement shall be terminated, at the Employer's election, if
    Employee is unable to perform his duties hereunder, for a period of six
    months (180) days in any 365 day period (or at such earlier time as the
    Bank's "salary continuation" insurance becomes effective) by reason of
    physical or mental disability. For purposes of this Agreement, "physical or
    mental disability" shall mean Employee's inability, due to health reasons,
    to discharge properly his duties of employment supported by the opinion of a
    physician selected by the employer. If the Employee is subsequently able to
    return to work after termination as provided herein, Employer may in its
    discretion, employ Employee in the same capacity or in such other capacity
    as may be mutually agreeable under such terms and conditions as the parties
    may so agree. Prior to such return however, Employee shall provide a
    physician's opinion certifying his ability to return to work.

    (C)In the event of personal dishonesty, willful misconduct, gross
    negligence, loss of his license to act as an insurance agent in New York
    State, insubordination, or in the event of his deliberate failure to fulfill
    his obligations under this Agreement, after written notice from the Board
    provided Employee fails to take corrective action within such two (2) week
    period, the Board of Directors may terminate this Agreement by giving the
    Employee two (2) weeks written notice thereof. Such termination shall be
    effective at the expiration of such two (2) week notice. Thereafter the
    Employer shall not be obligated under any of the provisions herein, except
    as required by any statute in effect at that time.

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    (D)Employee may after December 31, 2005 voluntarily terminate his employment
    upon giving the Employer four (4) weeks written notice of his decision to
    terminate. Such a termination shall not constitute a breach of this
    Agreement; provided, however, that Employee shall be obligated after the
    date of such termination to continue to be bound by the conditions outlined
    in Section 7 hereof.

    (E)The parties may mutually agree to terminate this Agreement in writing on
    such terms as they may determine.

    (F)The Employer may terminate Employee's employment without cause and
    without notice; provided, however, that the Employer shall be obligated to
    continue to pay Employee's base salary plus benefits for the longer of three
    (3) months after the date of such termination or the remainder of the term
    of the Agreement and provided further that Employee shall be relieved of all
    further obligations under this Agreement except for provisions pursuant to
    Paragraph 7.

    (G)In the event of a "Sale of the Bank" (as defined below), the Employee
    may, at any time after one year following the "Sale of the Bank" voluntarily
    terminate his employment upon giving the Employer four (4) weeks written
    notice of his decision to terminate, provided, however, that the Employee
    shall be obligated after the date of such termination to continue to be
    bound by the conditions outlined in Section 7 hereof. The term "Sale of the
    Bank" shall mean a sale or other transaction following which Evans Bancorp,
    Inc. no longer owns 51% or more of the voting stock of the Bank or a sale or
    other transaction following which an unaffiliated person acquires 80% or
    more of the voting stock of Evans Bancorp, Inc. In the event the Employee
    terminates this Employment Agreement under this Subparagraph, then his
    obligations under Subsection 2(a) of the Covenant Not to Compete Agreement
    dated September 1, 2000 shall terminate as of the date this Agreement
    terminates but the other provisions of such Section 2 and the Covenant Not
    to Compete Agreement shall continue in full force and effect.

9.  MODIFICATION: This Agreement constitutes the full and complete understanding
    of the parties and supersedes all prior agreements and understandings oral
    or written, between the parties, with respect to the subject matter hereof.
    This Agreement may not be modified or amended except by an instrument in
    writing, signed by the party against which enforcement thereof may be
    sought.

10. SEVERABILITY: Any term or provision of this Agreement which is invalid or
    unenforceable in any jurisdiction shall, as to such jurisdiction, be
    ineffective to the extent of such invalidity or unenforceability without
    rendering invalid or unenforceable the remaining terms and provisions of
    this Agreement or effecting the validity or enforceability of any of the
    terms or provisions of this Agreement or in other jurisdiction.

11. WAIVER OF BREACH: The waiver by either party of a breach of any provision of
    this Agreement shall not operate as, or be construed as, a waiver of any
    subsequent breach.

12. NOTICE: All notice hereunder shall be in writing and shall be sent by
    express mail or by certified or registered mail, postage prepaid, return
    receipt requested, to Employee at his residence as listed in the Employer's
    records, and to the Bank, c/o Evans National Bank, 14 - 16 North Main
    Street, Angola, New York 14006, Attention: Mr. Richard M. Craig, President,
    Chairman, and CEO, and to Employer at 265 Central Avenue, Silver Creek, New
    York, 14136-0151.

13. ASSIGNABILITY/BINDING EFFECT: This Agreement shall not be assignable by
    Employee without the written consent of the Board of Directors of the
    Employer. The Employer may assign its rights under this Agreement. This
    Agreement shall be binding upon and inure to the benefit of Employee, his
    legal representatives, heirs and distributees and shall be binding upon and
    inure to the benefit of the Employer, the Bank, its successors and assigns.

14. GOVERNING LAW: All questions pertaining to the validity, construction,
    execution and performance of this Agreement shall be construed and governed
    in accordance with the law of the State of New York.

15. HEADINGS: The headings in this Agreement are intended solely for convenience
    of reference and shall be given no effect in the construction or
    interpretation of this Agreement.

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IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day
and year above written.

          EMPLOYER:                               BANK:
          M&W AGENCY, INC.                        EVANS NATIONAL BANK

     By:  /s/ Richard M. Craig, Chairman     By:  /s/ Richard M. Craig, Chairman
          -------------------------------         ------------------------------
          RICHARD M. CRAIG, CHAIRMAN              RICHARD M. CRAIG, CHAIRMAN

          EMPLOYEE:
          M&W AGENCY, INC.

     By:  /s/ Robert G. Miller, Jr.
          -------------------------
          ROBERT G. MILLER, JR.Exhibit 10.1

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	EX: 10.1
	DIRECTORS DEFINED BENEFIT PLAN AGREEMENT
	Exhibit 10.1 Directors Defined Benefit Plan
	Exhibit 10.2 Special Separation Agreement
	Exhibit 13  Annual Report
	Exhibit 23  Consent of Independent Auditors

EX: 10.1

DIRECTORS DEFINED BENEFIT PLAN AGREEMENT

      This Agreement made and
entered into this 16th day of August, 1994, by
and between First National Bank, a Banking corporation under the laws of the
State of Ohio (hereinafter referred to as “the Bank”) and Charles J. Dolezal
(hereinafter referred to as “the Director”).

      The Bank has adopted the Director Defined Benefit Plan (hereinafter
referred to as “the Plan”), a copy of the terms and conditions of which are
attached hereto and incorporated by reference.

      Accordingly, it is the desire of the Bank and the Director to enter
into this Agreement under which the Bank will agree to make certain payments to
the Director either upon his retirement, or alternatively, to his
beneficiary(ies) in the event of his death, pursuant to the Plan.

I. RETIREMENT AND DEATH BENEFITS

		
	 	The amount and length of time of payment of the annual retirement
benefit and/or any death benefit that shall be paid to the Director
shall be calculated using the appropriate formulas set forth in
Paragraph I or II of the Plan Adoption Agreement. For these purposes,
any portion of a year greater than or equal to six (6) months shall be
counted as a full year. Any portion of a year less than six (6) months
shall not be considered in the calculation of the benefit. Such annual
benefit shall commence sixty (60) days following the later of the date
of the Director’s retirement or his attaining age 70 and shall continue
for the lifetime of the Director, but in no case less than fifteen (15)
years.

II. DEFERRED FEES

      A. Amount of Deferral

		
	 	The Director may elect to defer a maximum of $1,000.00 per
month of his director and committee fees earned from the Bank.

      B. Fees

		
	 	The fees covered under this Agreement shall be any and all
amounts paid to the Director for his services as a director,
including but not limited to annual fees, meeting fees and
committee fees. The fees covered under this Agreement shall be
credited to the Director in the manner and on the terms and
conditions specified in Paragraph II D herein subject to the
election pursuant to Paragraph II A herein.

 

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      C. Election of Deferred Compensation

		
	 	The election to defer fees may only be made for fees not yet
earned as of the date of said election. This election unless
modified or revoked, shall be valid for all succeeding years.
Any modification or revocation of such election must be in
writing and shall be effective for calendar years succeeding
the year in which the modification or revocation is made.

      D. Credits to Deferred
Compensation Account

		
	 	The Bank shall establish a bookkeeping account for the
Director (hereinafter called the “Director’s Deferred
Compensation Account”) which shall be credited on the date
such fees, as defined in Paragraph II B herein, would
otherwise have been paid with the dollar amount that the
Director has elected to defer, pursuant to Paragraph II A
herein.

      E. Interest on the Deferred Compensation Account

		
	 	The Director’s Deferred Compensation Account shall be
credited with an amount that is in addition to the fees
credited under Paragraph II D herein. Such amount shall be
determined by multiplying the balance of the Director’s
Deferred Compensation Account by a rate of interest equal to
two (2) times the one-year treasury rate as of December 31st
of each year. However, in no case will the rate of interest
credited be less than 8%. Such rate shall be adjusted
annually. Such amount shall be credited as long as there is a
balance in the Director’s Deferred Compensation Account and
shall be credited on December 31 of each year.

      F. Nature of the Deferred Compensation Account

		
	 	The Director’s Deferred Compensation Account shall be
utilized solely as a device for the measurement and
determination of the amount of deferred compensation to be
paid to the Director at the times hereinafter specified, and
the Bank shall not segregate any of its assets in order to
satisfy any obligations under the plan. The Director’s
Deferred Compensation Account shall not constitute or be
treated as a trust fund of any kind. On the contrary, it is
understood that all amounts credited to the Director’s
Deferred Compensation Account shall be for the sole purpose of
bookkeeping and remain the sole property of the Bank, and that
the Director shall have no ownership rights of any nature with
respect thereto. The Director’s rights are limited to the
rights to receive payments as hereinafter provided and the
Director’s position with respect thereto is that of a general
unsecured creditor of the Bank.

 

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      G. Payment of Director’s Deferred Compensation

		
	 	The amounts in the Director’s Deferred Compensation Account
shall be amortized with interest at the rate of eight percent
(8%) per annum and paid in equal monthly installments for one
hundred and twenty (120) months commencing on the first day of
the calendar month following the end of the Director’s term of
office due to retirement, resignation, removal or failure to
be re-elected.

      H. Death of Director Prior to Termination of Service or
Commencement of Payments

		
	 	In the event of the death of the Director prior to termination
of service or commencement of benefit payments, payments shall
begin pursuant to this Paragraph within sixty (60) days after
the Director’s death, as if the Director had retired on his
date of death, and shall be made to a beneficiary or
beneficiaries designated by the Director in writing and
delivered to the Bank’s president. The Director shall have the
right to change his designated beneficiary from time to time.
In the event no designation is made, a lump-sum payment shall
be made to his estate.

III. DESIGNATED BENEFICIARY

		
	 	The Director shall designate a beneficiary on the form attached hereto.
This beneficiary designation may be changed at any time prior to the
death of the Director, provided such change is done in writing and
acknowledged by the Bank.

IV. RESTRICTIONS UPON FUNDING

		
	 	The Bank shall have no obligation to set aside, earmark or entrust any
fund or, money with which to pay its obligations under this
Agreement. The Director, his beneficiary (ies) or any successor in
interest to him or her shall be and remain simply a general creditor of
the Bank in the same manner as any other creditor having a general
claim for matured and unpaid compensation.

		
	 	The Bank reserves the absolute right at its sole discretion to either
fund the obligations undertaken by this Agreement or to refrain from
funding the same and to determine the exact nature and method of such
funding. Should the Bank elect to fund this Agreement, in whole or in
part, through the purchase of life insurance, mutual funds, disability
policies or annuities, the Bank reserves the absolute right, in its
sole discretion, to terminate such funding at any time, in whole or in
part. At no time shall the Director be deemed to have any lien nor
right, title or interest in or to any specific funding investment or to
any assets of the Bank.

 

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	 	If the Bank elects to invest in a life insurance, disability or annuity
policy upon the life of the Director, then the Director shall assist
the Corporation by freely submitting to a physical exam and supplying
such additional information necessary to obtain such insurance or
annuities.

V. MISCELLANEOUS

		
	 	A. Alienability and Assignment Prohibition

		
	 	Neither the Director, his widow nor any other beneficiary
under this Agreement shall have any power or right to
transfer, assign, anticipate, hypothecate, mortgage, commute,
modify or otherwise encumber in advance any of the benefits
payable hereunder, nor shall any of said benefits be subject
to seizure for the payment of any debts, judgments, alimony or
separate maintenance owed by the Director or his beneficiary,
nor be transferable by operation of law in the event of
bankruptcy, insolvency or otherwise. In the event the Director
or any beneficiary attempts assignment, commutation,
hypothecation, transfer or disposal of the benefits hereunder,
the Bank’s liabilities shall forthwith cease and terminate.

		
	 	B. Binding Obligation of the Bank and Any Successor in Interest

		
	 	The Bank expressly agrees that it shall not merge or
consolidate into or with another bank or sell substantially
all of its assets to another bank, firm or person until such
bank, firm or person expressly agrees, in writing, to assume
and discharge the duties and obligations of the Bank under this
Agreement. The Agreement shall be binding upon the parties
hereto their successors, beneficiaries, heirs and personal
representatives.

		
	 	C. Revocation

		
	 	It is agreed by and between the parties hereto that, during
the lifetime of the Director, this Agreement may be amended or
revoked at any time or times, in whole or in part, by the
mutual written assent of the Director and the Bank.

		
	 	D. Gender

		
	 	Whenever in this Agreement words are used in the masculine or
neuter genders, they shall be read and construed as in the
masculine, feminine or neuter gender, whenever they should so
apply.

 

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	 	E. Effect on Other Bank Benefit Plans

		
	 	Nothing contained in this Agreement shall affect the right of
the Director to participate in or be covered by any qualified
or non-qualified pension, profit-sharing , group, bonus or
other supplemental compensation or fringe benefit plan
constituting a part of the Bank’s existing or future
compensation structure.

		
	 	F. Headings

		
	 	Headings and subheadings in this Agreement are inserted for
reference and convenience only and shall not be deemed a part
of this Agreement.

		
	 	G. Applicable Law

		
	 	The validity and interpretation of this Agreement shall be
governed by the laws of the State of Ohio.

VI. ERISA PROVISION

		
	 	A. Named Fiduciary and Plan Administrator:

		
	 	The “Named Fiduciary and Plan Administrator” of this plan
shall be Charles J. Dolezal until his resignation or removal
by the Board. As Named Fiduciary and Administrator, Mr.
Dolezal shall be responsible for the management, control and
administration of the Director Defined Benefit Plan Agreement
as established herein. He 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.

		
	 	B. Claims Procedure and Arbitration:

		
	 	In the event a dispute arises over benefits under this
Agreement and benefits are not paid to the Director (or to his
beneficiary in the case of the Director’s death) and such
claimants feel they are entitled to receive such benefits,
then a written claim must be made to the Named Fiduciary and
Administrator named above within ninety (90) days from the
date payments are refused. The Plan Fiduciary and
Administrator and the Bank shall review the written claim and
if the claim is denied, in whole or in part, they shall
provide in writing within ninety (90) days of receipt of such
claim their specific reasons for such denial, reference to the
provisions of this Agreement upon which the denial is based
and any additional material or information necessary to
perfect the claim. Such written notice shall further indicate
the additional steps to be taken by claimants if a further
review of the claim denial is desired. A claim shall be deemed
denied if the

 

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	 	Plan Fiduciary and Administrator fails to take any action
within the aforesaid ninety-day period.

		
	 	If claimants desire a second review they shall notify the Plan
Fiduciary and Administrator in writing within ninety (90) days
of the first claim denial. Claimants may review this Agreement
or any documents relating thereto and submit any written
issues and comments they may feel appropriate. In its sole
discretion, the Plan Fiduciary and Administrator shall then
review the second claim and provide a written decision within
ninety (90) days of receipt of such claim. This decision shall
likewise state the specific reasons for the decision and shall
include reference to specific provisions of this Agreement
upon which the decision is based.

		
	 	If claimants continue to dispute the benefit denial based upon
completed performance of this Agreement or the meaning and
effect of the terms and conditions thereof, then claimants may
submit the dispute to a Board of Arbitration for final
arbitration. Said Board shall consist of one member selected
by the claimant, one member selected by the Bank, and the
third member selected by the first two members. The Board
shall operate under any generally recognized set of
arbitration rules. The parties hereto agree that they and
their heirs, personal representatives, successors and assigns
shall be bound by the decision of such Board with respect to
any controversy properly submitted to it for determination.

		
	 	Where a dispute arises as to the Bank’s discharge of the
Director “for cause”, such dispute shall likewise be submitted
to arbitration as above described and the parties hereto agree
to be bound by the decision thereunder.

		
	IN WIT	NESS WHEREOF, the Bank has caused this Agreement to be signed in its
corporate name by its duly authorized officer, and Director
hereunto set his hand and seal, all on the day and year first
above written.

	 	 	 
	Executed this
16th. day of August, 1994		

	 	FIRST NATIONAL BANK

	 	/s/ Michael D. Hofstetter

___________________________________________

Michael D. Hofstetter

Senior V.P. & Controller

	
	
	
	

	
	
	
	

	
	
	
	

	
	
	
	

	
	
	
	

	
	
	
	

	
	
	
	

	 	/s/ Charles J. Dolezal

___________________________________________

Charles J. Dolezal, Director

 

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DIRECTOR DEFINED BENEFIT PLAN

ADOPTION AGREEMENT

The members of the Board of Directors of First National Bank (the Bank)
are providing service that is of exceptional merit as well as making an
invaluable contribution to the profits and growth of the Bank. In addition, the
experience, knowledge, good reputation and contacts of these Directors is of
extreme value to the Bank’s future success.

Accordingly, it is the desire of the Board of the Bank to modify the
compensation of its members by agreeing to make certain payments to each
Director either upon his or her retirement, or alternately, to his or her
beneficiary (ies) in the event of his or her death. To provide for this desire
the Board of Directors of First National Bank has on the date hereof adopted the
Director Defined Benefit Plan, the terms and conditions of which are as
follows:

I. DEFINED RETIREMENT BENEFIT

		
	 	Each Director shall receive an annual retirement benefit commencing at
his or her retirement or age seventy (70), whichever occurs later. The
amount of this annual benefit shall be $1,000.00 for each year of Board
service from and after the date hereof.
	
	
	
	

	
	
	
	

	
	
	
	

	
	
	
	

	
	
	
	

	 	This annual retirement benefit
shall be paid in successive years and continue for the lifetime of the
Director but in no event less than fifteen (15) years. Should the
Director die prior to having received fifteen (15) annual payments, the
balance of the payments shall be paid to the designated beneficiary
(ies) of the Director.

II. DEATH BENEFIT

		
	 	A. While Serving on the Board

		
	 	In the event a Director should die while serving, on the
Board, the Bank shall pay to the Director’s designated
beneficiary(ies), in lieu of the retirement benefit described
herein above in paragraph I, fifteen (15) successive annual
benefit payments, each equal to $1,000.00 for each year of
service from and after the date hereof. If the Director has
not yet reached seventy (70) years of age at the date of death
and is insurable and the Bank has purchased insurance on his
or her life, it shall be assumed for the purpose of
calculating this annual benefit that the Director died at age
seventy (70).

 

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	 	B. Death After Service on the Board has Terminated

		
	 	In the event the Director dies prior to age seventy (70) while
not serving on the Board, the Bank shall pay the Director’s
designated beneficiary(ies) an annual benefit in an amount
equal to the Director’s retirement benefit calculated pursuant
to Paragraph I herein above, for a continuous period of
fifteen (15) years commencing sixty (60) days following the
notification to the Bank of the Director’s death.

		
	 	C. Alternative to Retirement Benefit

		
	 	The Pre-retirement Death Benefit described herein above
(Paragraph II, A and B) is paid as an alternative to the
Retirement Benefit described in Paragraph I herein above, and
therefore, benefit payments shall be made pursuant to either
Paragraph I or Paragraph II herein, but not both.

		
	 	D. Suicide

		
	 	In the event the Director’s death is within two (2) years of
the date hereof and is the result of suicide, the amount of
these pre-retirement death benefits shall be calculated as if
the Director was uninsurable.

III. DEFERRED COMPENSATION AGREEMENT

		
	 	Each Director may elect to defer a portion or all of his or her
director’s and committee fees up to a maximum of $1,000 per month. The
Bank shall establish a Deferred Compensation Account for each Director
electing to defer and credit that account with the deferrals. The Bank
shall credit interest to that Deferred Compensation Account balance on
December 31st of each year. The interest rate shall be equal to two
(2) times the one-year Treasury rate as of the crediting date to a
minimum of eight percent (8%).

		
	 	Each Director must state his or her intention to defer and the maximum
amount to be deferred annually as of the date hereof to preserve his or
her right to defer in the future.

		
	 	The balance of the Director Deferred Compensation Account shall be paid
to the Director at the time he or she leaves the Board by retirement or
otherwise, or to the Director’s designated beneficiary (ies) upon the
death of the Director.

 

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IV. DESIGNATED BENEFICIARY

		
	 	Each Director shall name a designated beneficiary(ies) in writing on a
form provided by the Bank. This beneficiary designation may be changed
at any time prior to the death of the Director provided such change is
done in writing and acknowledged by the Bank.

V. FINANCING

		
	 	The Bank intends to finance its obligations under this plan with
policies of life insurance insuring the life of each Director. This
plan is a non-qualified benefit plan and, therefore, at no time shall
any Director be deemed to have any lien, right, title or interest in or
to any specific asset of the Bank, including the insurance policies
used to finance the plan.

VI. AGREEMENTS

		
	 	Each Director shall enter into a written agreement with the Bank. The
terms and conditions of the plan set forth herein shall be incorporated
into that agreement.

		
	 	Adopted on this 16th day of August, 1994

	 	FIRST NATIONAL BANK

	 	/s/ Charles J. Dolezal

     President

 

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Exhibit 10.1 Directors Defined Benefit Plan Agreement

The following directors entered into an identical agreement on the dates
indicated:

	 	 	 	 	 
			Date
			

	Ray D. Gill			8-24-94	
	
	
	
	

	James L. Gerber			8-18-94	
	
	
	
	

	John E. Sprunger			8-27-94	
	
	
	
	

	Stephen W. Schmid			8-22-94	
	
	
	
	

	John W. Kropf			8-31-94	
	
	
	
	

	Sara E. Steinbrenner			8-18-94	
	
	
	
	

	Paul H. Smucker			8-23-94	
	
	
	
	

	James F. Woolley			8-22-94	
	
	
	
	

	Albert W. Yeagley			7-01-97	
	
	
	
	

	Bobbi E. Douglas			5-26-99	
	
	
	
	

	Howard J. Wenger			4-13-99

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