Document:

Exhibit

Exhibit 10.35

PEOPLES BANCORP INC.
CHANGE IN CONTROL AGREEMENT

This CHANGE IN CONTROL Agreement is adopted this 30th day of November, 2015, by and between PEOPLES BANCORP INC., a financial holding company, located in Marietta, Ohio (the “Company”), and John C. Rogers  (the  “Executive”), an Executive of the Company or any of its subsidiaries. 

The Board of Directors of the Company (the “Board”) has determined that it is in the best interests of the Company to retain the Executive’s services and to reinforce and encourage the continued attention and dedication of the Executive to his assigned duties, without distraction in potentially disturbing circumstances arising from the possibility of a change in control of the Company or the assertion of claims and actions against the Executive.

The Company and the Executive agree as provided herein.

Article 1
Definitions

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

1.1    “Agreement” means this Peoples Bancorp Inc. Amended and Restated Change in Control Agreement, as it may be amended from time to time.

1.2    “Base Annual Compensation” means the Executive’s average annualized compensation paid by the Company which was includible in the Executive’s gross income during the most recent five taxable years ending before the date of the Change in Control.  The definition includes amounts includible in compensation, prior to any reduction for a salary contribution to a plan described in Section 125 of the Code or qualified under Section 401(k) of the Code, as well as any compensation included in the Executive’s “base amount” within the meaning of Section 280G of the Code.  Notwithstanding the foregoing, in the event that the Executive became an “employee” (as that term is defined in the Peoples Bancorp Inc. Second Amended and Restated 2006 Equity Plan) of the Company (a) during the same calendar year as the date of the Change in Control or (b) during the calendar year immediately preceding the calendar year in which the date of the Change in Control occurs, “Base Annual Compensation” for purposes of this Agreement shall mean that amount which is equal to the greatest of the following amounts, in each case as applicable:  (x) the “Base Annual Compensation” of the Executive determined in accordance with the provisions of the first sentence of this Section 1.2; (y) the sum of (A) the Executive’s annualized monthly base salary paid by the Company for the calendar year in which the date of the Change in Control occurs, prior to any reduction for a salary contribution to a plan described in Section 125 of the Code or qualified under Section 401(k) of the Code, (B) the Executive’s target payout potential under the Company’s annual cash incentive program in which the Executive is participating during the calendar year in which the date of the Change in Control occurs and (C) to the extent not duplicative of the amount reflected in subclause (A) or in subclause (B) of this clause (y), any other includible compensation (as determined under the applicable provisions of the Code) paid by the Company to the Executive with respect to the calendar year in which the date of the Change in Control occurs; and (z) the sum of (A) the Executive’s annualized monthly base salary paid by the Company for the calendar year immediately preceding the calendar year in which the date of the Change in Control occurs, 

prior to any reduction for a salary contribution to a plan described in Section 125 of the Code or qualified under Section 401(k) of the Code, (B) the Executive’s target payout potential under the Company’s annual cash incentive program in which the Executive  participated in the calendar year immediately preceding the calendar year in which the date of the Change in Control occurs and (C) to the extent not duplicative of the amount reflected in subclause (A) or in subclause (B) of this clause (z), any other includible compensation (as determined under the applicable provisions of the Code) paid by the Company to the Executive with respect to the calendar year immediately preceding the calendar year in which the date of the Change in Control occurs.

1.3    “Cause” means

(a)  Gross negligence or gross neglect of duties; or

(b)  Commission of a felony or of a gross misdemeanor involving moral turpitude in connection with the Executive’s employment with the Company or a Subsidiary; or

              (c)  Fraud, disloyalty, dishonesty or willful violation of any law or significant Company or Subsidiary policy committed in connection with the Executive’s employment; or

              (d)  Issuance of an order for removal of the Executive by the Company’s bank regulators.

1.4    “Change in Control” shall occur on the earliest date that 

(a)  A “person” or “group” (as defined in Section 409A of the Code)  acquires ownership of stock of the Company that, together with stock held by such person or group, constitutes more than fifty percent (50%) of the total fair market value or total voting power of the stock of the Company; 

(b) any person or group acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such person or group) ownership of stock of the Company possessing thirty-five percent (35%) or more of the total voting power of the stock of the Company;

(c) a majority of the members of the Board is replaced during any twelve (12) month period by directors whose appointment or election is not endorsed by a majority of the members of the Company’s Board prior to the date that such appointments or elections are made; or 

(d) any person or group acquires (or has acquired) during the twelve (12) month period ending on the date of the most recent acquisition by such person or group, assets from the Company that have a total gross fair market value equal to or more than forty percent (40%) of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions.  

Notwithstanding the foregoing, the definition of “Change in Control” shall be interpreted consistent with the definition of “change in control event” under Section 409A of the Code.

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

1.6        “Disability” means the Executive’s suffering a sickness, accident or injury which has been determined by the insurance carrier of any individual or group disability insurance policy 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 Plan Administrator of the insurance carrier’s or Social Security Administration’s determination upon the request of the Plan Administrator.

1.7          “Good Reason” means, without the Executive’s express written consent, after written notice to the Board, and after a thirty (30) day opportunity for the Board to cure, the continuing occurrence of any of the following events:

(a)  The assignment to the Executive of any material duties or responsibilities inconsistent with the Executive’s positions, or a change in the Executive’s reporting responsibilities, titles, or offices, or any removal of the Executive from or any failure to re-elect the Executive to any of such positions, except in connection with the Executive’s Termination of Employment for Cause, Disability, retirement, or as a result of the Executive’s death;

(b)      A reduction by the Company in the Executive’s base salary; 

(c)      The taking of any action by the Company which would adversely affect the Executive’s participation in or materially reduce the Executive’s benefits under any benefit plans, or the failure by the Company to provide the Executive with the number of paid vacation days to which the Executive is then entitled on the basis of years of service with the Company in accordance with the Company’s normal vacation policy in effect on the date hereof;

(d)      Any failure of the Company to obtain the assumption of, or the agreement to perform, this Agreement by any successor as contemplated in Section 3.9 hereof; or

(e)      The Company directing the Executive to be reassigned to an office location fifty (50) miles or more from the current office location of the Executive except for required travel on Company business to an extent substantially consistent with the Executive’s present business travel obligations or, in the event the Executive consents to any relocation, the failure by the Company to pay (or reimburse the Executive) for all reasonable moving expenses incurred by the Executive relating to a change of the Executive’s principal residence in connection with such relocation and to indemnify the Executive against any loss realized on the sale of the Executive’s principal residence in connection with any such change of residence.

1.8      “Subsidiary” means any entity that, along with the Company, would be treated as a single employer under Sections 414(b) and (c) of the Code.    

1.9    “Termination Date” shall mean the date of the Executive’s Termination of Employment.

1.10    “Termination of Employment” shall mean a “separation from service”, within the meaning of Section 409A of the Code, by the Executive from the Company and its Subsidiaries.

Article 2
Change in Control Benefits

2.1      Change in Control Benefit.  If within the six (6) months prior or twenty-four (24) months following a Change in Control of the Company, the Executive shall have an involuntary Termination of Employment by the Company other than for Cause, or shall have a voluntary Termination of Employment for Good Reason, the Company shall pay to the Executive a benefit under this Article. 

2.1.1    Amount of Benefit. The benefit under this Section 2.1 is two (2) times the Executive’s Base Annual Compensation at the date of the Change of Control.

2.1.2    Payment of Benefit.  The Company shall pay the benefit to the Executive in a lump sum within thirty (30) days following the Termination Date.  Notwithstanding the foregoing, if the Executive is a “specified employee” within the meaning of Section 409A of the Code and as determined under the 

Company’s policy for determining specified employees, on the date of the Executive’s Termination Date, and the payment described in Section 2.1.1 of this Agreement is required to be delayed pursuant to Section 409A(a)(2)(B) of the Code, such payment shall be made on the first business day of the seventh (7th) month following the Termination Date (or, if earlier, the Executive’s date of death).  

2.1.3       Insurance Benefits.  During the period of time specified in Section 3.2 of this Agreement, the Executive shall receive, in addition to the benefit provided in Section 2.1.1 of this Agreement the following benefits substantially in the form and expense to the Executive as received by the Executive on the Termination Date: (a) medical and dental insurance; and (b) life insurance.   The provision of medical and dental insurance beyond the period of time described in Treasury Regulation §1.409A-1(b)(9) and the provision of life insurance benefits pursuant to this Section 2.1.3 shall, however, be subject to the following limitations: (i) the benefits provided during Executive’s taxable year may not affect the benefits to be provided to Executive in any other taxable year, (ii) reimbursements or payments must be made on or before the last day of Executive’s taxable year following the taxable year in which the expense being paid or reimbursed was incurred, and (iii) the right to continued coverage is not subject to liquidation or exchange for another benefit.

It is understood and agreed that any rights and privileges of the Executive provided by the Consolidated Omnibus Budget Reconciliation Act of 1986, amending the Employee Retirement Income Security Act, the Internal Revenue Code and the Public Health Services Act, as amended, shall begin at the end of the period of time specified in Section 3.2 of this Agreement.  

2.2         Excess Parachute Payment. Notwithstanding anything to the contrary in this Agreement, if there are payments to the Executive which constitute “excess parachute payments,” as defined in Section 280G of the Code, then the payments made to the Executive shall be the greater of: (a) one dollar ($1.00) less than the amount which would cause the payments to the Executive (including payments to the Executive which are not included in this Agreement) to be subject to the excise tax imposed by Section 4999 of the Code; and (b) the amount of payments payable to the Executive contingent upon the Company’s Change in Control (including payments to the Executive which are not included in the Agreement) if the sum of these payments, after taking into account any excise taxes that may be imposed on the Executive under Section 4999 of the Code, would be greater than the amount specified in Section 2.2(a).  Any reduction to any payment made pursuant to this Section 2.2(a) shall be performed consistent with the requirements of Section 409A of the Code.

Section 2.3 - Withholding & Payroll Taxes

To the extent required by law, the Company shall withhold from other amounts owed to the Executive or require the Executive to remit to the Company an amount sufficient to satisfy federal, state and local withholding tax requirements on any payments made to the Executive under this Agreement.  Determinations by the Company as to withholding shall be binding on the Executive.

Article 3
Miscellaneous

3.1    Confidential Information. The Executive recognizes and acknowledges that the Executive will have access to certain information of the Company and that such information is confidential and constitutes valuable, special and unique property of the Company. The Executive shall not at any time, either during or subsequent to the term of this Agreement, disclose to others, use, copy or permit to be copied, except as directed by law or in pursuance of the Executive’s duties for or on behalf of the Company, its successors, assigns or nominees, any Confidential Information of the Company (regardless of whether developed by the Executive), without the prior written consent of the Company. The term “Confidential Information” with 

respect to any person means any secret or confidential information or know-how and shall include, but shall not be limited to, the plans, customers, costs, prices, uses, and applications of products and services, results of investigations, studies owned or used by such person, and all products, processes, compositions, computer programs, and servicing, marketing or operational methods and techniques at any time used, developed, investigated, made or sold by such person, before or during the term of this Agreement, that are not readily available to the public or that are maintained as confidential by such person. The Executive shall maintain in confidence any Confidential Information of third parties received as a result of the Executive’s employment with the Company in accordance with the Company’s obligations to such third parties and the policies established by the Company.

3.2    No Competition. If within the six (6) months prior or twenty-four (24) months following a Change in Control of the Company, the Executive shall have an involuntary Termination of Employment by the Company other than for Cause, or shall have a voluntary Termination of Employment for Good Reason, then and for a period of one (1) year immediately following the Termination Date, the Executive shall not directly or indirectly engage in the business of banking, or any other business in which the Company directly or indirectly engages during the term of the  Agreement; provided, however, that this restriction shall apply only to the geographic market of the Company as delineated on the Termination Date in the Community Reinvestment Act Statement of Peoples Bank, National Association. The Executive shall be deemed to engage in a business if the Executive directly or indirectly, engages or invests in, owns, manages, operates, controls or participates in the ownership, management, operation or control of, is employed by, associated or in any manner connected with, or renders services or advice to, any business engaged in banking, provided, however, that the Executive may invest in the securities of any enterprise (but without otherwise participating in the activities of such enterprise) if two conditions are met: (a) such securities are listed on any national or regional securities exchange or have been registered under Section 12(g) of the Securities Exchange Act of 1934 and (b) the Executive does not beneficially own (as defined Rule 13d-3 promulgated under the Securities Exchange Act of 1934) in excess of one percent of the outstanding capital stock of such enterprise.

3.3    Delivery of Documents Upon Termination. The Executive shall deliver to the Company or its designee at the Executive’s Termination of Employment all correspondence, memoranda, notes, records, drawings, sketches, plans, customer lists, product compositions, and other documents and all copies thereof, made, composed or received by the Executive, solely or jointly with others, that are in the Executive’s possession, custody, or control at such Termination of Employment and that are related in any manner to the past, present, or anticipated business of the Company.

3.4    Remedies. The Executive acknowledges that a remedy at law for any breach or attempted breach of the Executive’s obligations under Sections 3.1, 3.2 and 3.3 may be inadequate, agrees that the Company may be entitled to specific performance and injunctive and other equitable remedies in case of any such breach or attempted breach and further agrees to waive any requirement for the securing or posting of any bond in connection with the obtaining of any such injunctive or other equitable relief. The Company shall have the right to offset against amounts to be paid to the Executive pursuant to the terms hereof any amounts owed by the Executive to the Company at the time of payment.  

The termination of the Agreement shall not be deemed to be a waiver by the Company of any breach by the Executive of this Agreement or any other obligation owed the Company, and notwithstanding such a termination the Executive shall be liable for all damages attributable to such a breach.

3.5      Dispute Resolution.  Subject to the Company’s right to seek injunctive relief in court as provided in Section 3.4 of this Agreement, any dispute, controversy or claim arising out of or in relation to or connection to this Agreement, including without limitation any dispute as to the construction, validity, interpretation, 

enforceability or breach of this Agreement, shall be settled by arbitration administered by the American Arbitration Association under its National Rules for
the Resolution of Employment Disputes and judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.

3.6    Acknowledgement of Parties. The Company and the Executive understand and acknowledge that this Agreement means that neither can pursue an action against the other in a court of law regarding any employment dispute, except for claims involving workers’ compensation benefits or unemployment benefits, and except as set forth elsewhere in this Agreement, in the event that either party notifies the other of its demand for arbitration under this Agreement. The Company and the Executive understand and agree that this Section 3.5, concerning arbitration, shall not include any controversies or claims related to any agreements or provisions (including provisions in this Agreement) respecting confidentiality, proprietary information, non-competition, non-solicitation, trade secrets, or breaches of fiduciary obligations by the Executive, which shall not be subject to arbitration. 

3.7    Right to Consult Counsel.  Executive has been advised of the Executive’s right to consult with an attorney prior to entering into this Agreement.

3.8    Successors of the Company. The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company, by agreement in form and substance satisfactory to the          Executive, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.  The failure of the Company to obtain such agreement prior to the effectiveness of         any such succession shall be a breach of this Agreement and shall entitle the Executive to terminate the Agreement and receive compensation from the Company in the same amount and on the same terms as the Executive would be entitled hereunder if the Executive terminated the Executive’s employment for Good Reason.  As used in this Agreement, “Company” as hereinbefore defined shall include any successor to its business and/or assets as aforesaid which executes and delivers the agreement provided for in this Section 3.8 or which otherwise becomes bound by all the terms and provisions of this Agreement by operation of law. 

3.9    Executive’s Heirs, etc. The Executive may not assign the Executive’s rights or delegate the Executive’s duties or obligations hereunder without the written consent of the Company. This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If the Executive should die while any amounts would still be payable to the Executive hereunder if the Executive had continued to live, all such amounts, unless other provided herein, shall be paid in accordance with the terms of this Agreement to the Executive’s designee or, if there be no such designee, to the Executive’s estate.

3.10    Notices. Any notice or communication required or permitted under the terms of this Agreement shall be in writing and shall be delivered personally, or sent by registered or certified mail, return receipt requested, postage prepaid, or sent by nationally recognized overnight carrier, postage prepaid, or sent by facsimile transmission to the Company at the Company’s principal office and facsimile number in Marietta, Ohio, or to the Executive at the address and  facsimile number, if any, appearing on the books and records of the Company. Such notice or communication shall be deemed given (a) when delivered if personally delivered; (b) five mailing days after having been placed in the mail, if delivered by registered or certified mail; (c) the business day after having been placed with a nationally recognized overnight carrier, if delivered by nationally recognized overnight carrier, and (d) the business day after transmittal when transmitted with electronic confirmation of receipt, if transmitted by facsimile. Any party may change the address or facsimile number to which notices or communications are to be sent to such party by giving notice of such change in the manner 

herein provided for giving notice. Until changed by notice, the following shall be the address and facsimile number to which notices shall be sent:

        
	
				
	If to the Company, to:
	If to the Executive, to:

	 
	Attn: General Counsel
	 
	__________

	 
	PEOPLES BANCORP INC.
	 
	_______________

	 
	138 Putnam Street
	 
	____________________

	 
	Marietta, Ohio 45750
	 
	 

	 
	Fax: (740) 568-1422
	 
	 

        

3.11    Amendment or Waiver. 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 as may be specifically designated by the Board (which shall not include the Executive). No waiver by either party hereto at any time of any breach by the 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. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party, which are not set forth expressly in this Agreement. This Agreement constitutes the         entire agreement between the Company 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.

3.12    Invalid Provisions. Should any portion of this Agreement be adjudged or held to be invalid, unenforceable or void, such holding shall not have the effect of invalidating or voiding the remainder of this Agreement and the parties hereby agree that the portion so held invalid, unenforceable or void shall if possible, be deemed amended or reduced in scope, or otherwise be stricken from this Agreement to the extent required for the purposes of validity and enforcement thereof. In this regard, the parties hereto hereby agree that any judicial authority construing this Agreement shall be empowered to sever any portion of the geographic area or any prohibited business activity from the coverage of this Agreement, and to reduce the duration of the          non-compete period and to apply the provisions of this Agreement to the remaining portion of the geographic area or the remaining business activities not to be severed by such judicial authority and to the duration of the non-compete period as reduced by judicial determination.

3.13    Survival of the Executive’s Obligations. The Executive’s obligations under this Agreement shall survive regardless of whether the Executive incurs a Termination of Employment, voluntarily or involuntarily, by the Company or the Executive, with or without Cause.

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

3.15    Governing Law.  This Agreement and any action or proceeding related to it shall be governed by and construed under the laws of the State of Ohio.

3.16    Captions and Gender. The use of Captions and Section headings herein is for purposes of convenience only and shall not effect the interpretation or substance of any provisions contained herein. Similarly, the use of the masculine gender with respect to pronouns in this Agreement is for purposes of convenience and includes either sex who may be a signatory.

3.17    Section 409A.   It is intended that the Agreement comply with Section 409A of the Code and the regulations promulgated thereunder (and any subsequent notices or guidance issued by the Internal Revenue Service), and the Agreement will be interpreted, administered and operated accordingly.  Nothing herein shall be construed as an entitlement to or guarantee of any particular tax treatment to the Executive.  Neither the Company nor the Board shall have any liability to any person in the event this Agreement fails to comply with the requirements of Section 409A of the Code at any time.

The Company may accelerate the time or schedule of a distribution to the Executive at any time the Agreement fails to meet the requirements of Section 409A of the Code and the regulations promulgated thereunder.  Such payment may not exceed the amount required to be included in income as a result of the failure to comply with the requirements of Section 409A of the Code and the regulations promulgated thereunder.

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

	
			
	EXECUTIVE:

	 
	PEOPLES BANCORP INC.

	/s/ JOHN C. ROGERS
	By:
	/s/ MATTHEW M. EDGELL

	Executive
	 
	Matthew M. Edgell

	 
	Its:
	SVP - Director of Human ResourcesExhibit

PEOPLES BANCORP INC.

THIRD AMENDED AND RESTATED
DEFERRED COMPENSATION PLAN FOR DIRECTORS OF
PEOPLES BANCORP INC. AND SUBSIDIARIES

Section 1.   PURPOSE

The Corporation desires and intends to recognize the value to the Corporation and its Affiliates of the past and present services of the Directors of the Corporation and its Affiliates, to encourage their continued service to the Corporation and its Affiliates and to be able to attract and retain superior Directors by adopting and implementing this Plan to provide such Directors an opportunity to defer compensation otherwise payable to them from the Corporation and/or any Affiliate. 

The Corporation originally established the Plan effective as of January 1, 1991.  The Plan was amended and restated effective as of January 2, 1998 to incorporate certain changes in its provisions, including the types of funds in which the deferred compensation allocated to the Participants' accounts may be invested.   The first amended and restated Plan was amended on July 23, 1998, effective as of January 2, 1998, to adopt a consensus reached by the Emerging Issues Task Force on Issue No. 97-14, Accounting for Deferred Compensation Arrangements Where Amounts Earned Are Held in a Rabbi Trust and Invested.  The Plan was amended and restated for a second time effective as of December 11, 2008 for purposes of compliance with Section 409A of the Code.  The second amended and restated Plan was amended, effective October 25, 2012, to provide a default account election and to clarify the mediums of distributions available to Participants.

This third amended and restated Plan is effective as of the Restatement Effective Date and is being amended to include Common Shares paid to Directors for services rendered to the Corporation or an Affiliate as Eligible Compensation for purposes of the Plan.

Section 2.   CERTAIN DEFINITIONS

The following terms will have the meanings provided below.

"Additions" means the credits applied to Deferred Compensation Accounts as provided in Section 4 hereof. 

"Adjustment Date" means the first business day of each calendar quarter.

"Affiliate" means: (1) prior to January 1, 2005, any organization or entity which, together with the Corporation was a member of a controlled group of corporations or of a commonly controlled group of trades or businesses (as defined in Sections 414(b) and (c) of the Code), of an affiliated service group (as defined in Section 414(m) of the Code) or other organization described in Section 414(m) of the Code; and (2) on or after January 1, 2005, any organization or entity which, together with the Corporation, would be considered a single employer under Sections 414(b) and (c) of the Code.

"Annual Retainer" means, with respect to any calendar year or other period, the fixed retainer which, absent an election to defer hereunder, would be payable to a Participant during those pay periods beginning in the given calendar year or other period.

"Beneficiary" means the person or persons designated in writing as such and filed with the Plan Administrator at any time by a Participant.  For this purpose, a "Beneficiary" may be designated
contingently or successively and may be an entity other than a natural person.  Any such designation may be withdrawn or changed in writing (without the consent of the Beneficiary), but only the last designation on file with the Plan Administrator shall be effective.

"Board" means the Board of Directors of the Corporation. 

"Code" means the Internal Revenue Code of 1986, as may be amended from time to time.

"Common Shares" means the common shares of the Corporation. 

"Corporation" means Peoples Bancorp Inc. and any successor entity. 

"Deferred Compensation Account" means the separate Deferred Compensation Account established for each Participant pursuant to Section 4 of the Plan.  The Deferred Compensation Account of a Participant may include both Grandfathered Amounts and Non-Grandfathered Amounts.

“Deferral Notice” means the form submitted by a Participant who wishes to participate in the Plan for any Plan Year in accordance with Section 4.B.

"Director" means any statutory director, emeritus director or honorary director of the Corporation or any Affiliate. 

"Eligible Compensation" means, to the extent applicable to any given Participant, the Annual Retainer and all Meeting Fees paid to the Participant in cash and/or Common Shares. The extent to which a given Participant may defer a given component of Eligible Compensation shall be based upon such Participant's eligibility to receive the given component of Eligible Compensation (as determined under applicable agreements and pay practices of the Corporation or the applicable Affiliate) and the provisions and limitations applicable to the given component as provided under this Plan. 

"Fair Market Value" of the Common Shares means the most recent closing price of the Common Shares on any securities exchange on which the Common Shares are then listed.

“Grandfathered Amounts” means the portion, if any, of a Participant’s Deferred Compensation Account that was earned and vested within the meaning of Section 409A of the Code under the Plan before January 1, 2005 and any Additions attributable to such portion of the Participant’s Deferred Compensation Account and any Additions thereon.

"Meeting Fees" means, with respect to any calendar year or other period, the compensation for attendance at meetings of the Board of Directors of the Corporation or applicable Affiliate or any committees thereof (exclusive of expenses) which, absent an election to defer hereunder, would be payable to a Participant during those pay periods beginning in the given calendar year or other period. 

“Non-Grandfathered Amounts” means the portion, if any, of a Participant’s Deferred Account and any Additions thereto that are not Grandfathered Amounts.

"Participant" has the meaning specified in Section 3 of the Plan. 

"Plan" means the Third Amended and Restated Peoples Bancorp Inc. Deferred Compensation Plan for Directors of Peoples Bancorp Inc. and Subsidiaries, as reflected in this document, as the same may be amended from time to time after the Restatement Effective Date.

"Plan Administrator" means the Corporation.  The functions of the Plan Administrator shall be carried out by a committee of three (3) Directors appointed by the Board and by the employee or employees designated by such committee to carry out certain specific functions.

"Plan Year" means the calendar year. 

"Restatement Effective Date" means, for this third amended and restated Plan, June 26, 2014.

"Separation from Service" means a "separation from service", within the meaning of Section 409A of the Code, by the Participant from the Corporation and its Affiliates.

"Unforeseeable Emergency" means a severe financial hardship to the Participant resulting from an illness or accident of the Participant, the Participant's spouse, the Participant’s Beneficiary or the Participant's dependent (as defined in Section 152 of the Code, without regard to subsections (b)(1), (b)(2) or (d)(1)(B) thereof), loss of the Participant's property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.

Section 3.   PARTICIPANTS

Each Director who is either participating in the Plan or is eligible to participate in the Plan as of the Restatement Effective Date shall continue either as a Participant in the Plan or as eligible to participate in the Plan as of such date.  Each Director who first becomes a Director after the Restatement Effective Date shall be eligible for participation in the Plan as of the date on which he or she becomes a Director.  A Director who is eligible for participation in the Plan and who elects to make deferral contributions pursuant to Section 4 shall be designated a "Participant" in the Plan.  A Participant shall continue to participate in the Plan until his or her status as a Participant is terminated by either a complete distribution of his or her Deferred Compensation Account pursuant to the terms of the Plan or by written directive of the Corporation.

Section 4.   DEFERRED COMPENSATION ACCOUNTS

A.  Establishment of Deferred Compensation Accounts.  The Plan Administrator will establish a Deferred Compensation Account for each Participant.  A Participant's Deferred Compensation Account shall have two subaccounts: a Cash Account to record amounts allocated under Section 4.D.(ii) and a Stock Account to record amounts allocated under Section 4.D.(i) and Section 4.D.(iii).  Such Deferred Compensation Account shall be a bookkeeping account only, maintained as part of the books and records of the Corporation or applicable Affiliate.

B.  Election of Participant.  With respect to each Plan Year, a Participant may elect to have (i) a percentage or a flat dollar amount of the cash portion of his or her Eligible Compensation and/or (ii) a percentage or fixed number of the Common Shares portion (in each case, representing whole Common Shares) of his or her Eligible Compensation which would otherwise be paid to him or her by the Corporation or applicable Affiliate for services performed during such Plan Year allocated to his or her Deferred Compensation Account and paid on a deferred basis pursuant to the terms of the Plan by submitting a written Deferral Notice to the Plan Administrator as follows:

		
	(a)
	Current Participants.  Participants who either were participating in this Plan or who were eligible to participate in this Plan as of the Restatement Effective Date shall submit a Deferral Notice for any Plan Year no later than December 31st of the preceding Plan Year;

		
	(b)
	First Year of Eligibility.  During a Plan Year in which a Director first becomes eligible to participate in the Plan, the Participant must submit a Deferral Notice no later than thirty (30) days after the date on which he or she first becomes a Director.  Such Deferral Notice shall be effective only with respect to Eligible Compensation relating to services performed after the date of such election.  For purposes of this section, a Director is first eligible to participate in the Plan only if the Director is not a participant in any other arrangement of the Corporation or any Affiliate that would be treated as a single nonqualified deferred compensation plan along with this Plan under Section 409A of the Code.

To the extent that a Participant completes a Deferral Notice in accordance with the provisions of this Section 4.B, such Deferral Notice shall remain in effect for future Plan Years until changed or revoked by the Participant.  A Participant may change or terminate his or her election to defer payment of Eligible Compensation by delivering written notice to the Plan Administrator.  Any such change or termination shall not become effective until the Plan Year following the Plan Year in which notice is given.  The termination of a Participant’s participation in this Plan shall not affect the amounts credited to the Deferred Compensation Account of such Participant prior to the effective date of termination, which shall be paid only in accordance with Section 5.

C.  Corporation Contributions.  Each time a Deferral Notice is submitted to the Plan Administrator in accordance with Section 4.B. above, during the next Plan Year (or, if applicable, the remaining Plan Year), the Corporation or applicable Affiliate will allocate to the Participant's Deferred Compensation Account the percentage or dollar amount of cash and/or the percentage or fixed number of Common Shares (in each case, representing whole Common Shares) of Eligible Compensation, specified in the Deferral Notice.  Any amounts so allocated by the Corporation or Affiliate are called "Corporation Contributions."

D.  Adjustment of Account Balances.  

		
	(i)    
	Election.  At the time that a Participant submits a Deferral Notice, he or she shall elect the percentage of Corporation Contributions attributable to the cash portion of his or her Eligible Compensation to be allocated to his or her Cash Account (to be adjusted pursuant to Paragraph (ii) of this Section 4.D.) and his or her Stock Account (to be adjusted pursuant to Paragraph (iii) of this Section 4.D).  In the absence of any election by a Participant on the Deferral Notice, one-hundred percent (100%) of the Corporation Contributions attributable to the cash portion of his or her Eligible Compensation shall be allocated to the Participant’s Cash Account.  Any Corporation Contributions attributable to the Common Shares portion of a Participant’s Eligible Compensation shall be automatically allocated to the Participant’s Stock Account in the whole number of Common Shares deferred pursuant to the Participant’s Deferral Notice.

		
	(ii)   
	Cash Account.  As of each Adjustment Date, the Plan Administrator shall credit the balance in the Participant's Cash Account with Additions which shall either (a) mirror a specific interest rate equal to the rate of return paid by Peoples Bank, National Association on a Three (3) Year certificate of deposit or an equivalent deposit account as of the last business day preceding the applicable Adjustment Date; or (b) to the extent that a certificate of deposit is purchased by a trust established to provide benefits under the Plan, be equal to the actual rate of interest paid with respect to such certificate of deposit.  The crediting of Additions shall be determined by multiplying the Participant's Cash Account balance as of each month of the quarter preceding the Adjustment Date by the applicable rate of interest determined under the preceding sentence.  The crediting of Additions shall occur so long as there is a balance in the Participant's Cash Account regardless of whether the Participant has Separated from Service as a Director or has died. The Plan Administrator may prescribe any reasonable method or procedure for the accounting of Additions. 

		
	(iii)  
	Stock Account.  As of each Adjustment Date (or such later date on which Common Shares are actually acquired), the amount credited to the Stock Account of each Participant attributable to the cash portion of the Participant’s Eligible Compensation shall be divided by the then Fair Market Value of a Common Share.  Upon completion of this calculation, each Stock Account shall be credited with the resulting number of whole Common Shares and any remaining amounts shall continue to be credited to the Stock Account until converted to whole Common Shares at a future Adjustment Date or purchase date.  The Stock Account of each Participant shall be credited with cash dividends on the Common Shares allocated under both Section 4.D.(i) and this Section 4.D.(iii) on and after the date such Common Shares are credited to the Stock Account.  At the following Adjustment Date (or, if later, the date on which Common Shares are actually acquired), the amount of cash dividends credited to each Stock 

Account (and any other amounts then credited to such Stock Account) shall be divided by the then Fair Market Value of a Common Share; and the Stock Account of each Participant shall be credited with the resulting number of whole Common Shares and any remaining amounts shall continue to be credited to the Stock Account until converted to whole Common Shares at a future Adjustment Date or purchase date.  The Plan Administrator may prescribe any reasonable method or procedure for the accounting of Additions. 

E.  Stock Adjustments.  The number of Common Shares and/or kind of securities in the Stock Account of each Participant shall be adjusted from time to time to reflect stock splits, stock dividends or other changes in the Common Shares resulting from a change in the Corporation’s capital structure.

F.  Participant's Rights in Accounts.  A Participant's only right with respect to his or her Deferred Compensation Account (and amounts allocated thereto) will be to receive payments in accordance with the provisions of Section 5 of the Plan. 

Section 5.  PAYMENT OF DEFERRED COMPENSATION ACCOUNTS

A.  Time of Payment.  Distribution of a Participant's Deferred Compensation Account shall be made as follows:

		
	(i)
	Grandfathered Amounts.  Distribution of a Participant’s Grandfathered Amounts shall commence on the first business day of the calendar month following the date of the Participant's termination of service as a Director due to resignation, retirement, death or otherwise.

		
	(ii)
	Non-Grandfathered Amounts.   Distributions of a Participant’s Non-Grandfathered Amounts shall commence on the first business day of the calendar month following the earlier of the Participant’s: (a) death; or (b) Separation from Service.

B.  Method of Distribution.  

		
	(i) 
	 In General. A Participant's Deferred Compensation Account shall be distributed to the Participant either in a single lump sum payment or in substantially equal annual installments over a period not to exceed five (5) years.  To the extent that a Deferred Compensation Account is distributed in installment payments, the undistributed portions of such account shall continue to be credited with Additions in accordance with the applicable provisions of Section 4.D.  In the absence of any election, a Participant's Deferred Compensation Account shall be paid in substantially equal annual installments over a period of five (5) years.  Cash Accounts shall be distributed in cash.  Stock Accounts shall be distributed in Common Shares. 

		
	(ii)
	Grandfathered Amounts.  The method of distribution (lump sum or installments) of Grandfathered Amounts shall be elected by the Participant prior to the date on which he or she ceases to be a Director.  

		
	(iii)
	Non-Grandfathered Amounts.  The method of distribution (lump sum or installments) of Non-Grandfathered Amounts shall be elected by the Participant in accordance with Section 4.B.   A Participant may change his or her election with respect to Non-Grandfathered Amounts by notifying the Plan Administrator in writing of the change; provided, however that: (a) such election may not take effect until at least twelve (12) months after the date on which such election is made; and (b) the payment with respect to which such election is made must be deferred (except in the case of the Participant’s earlier death or Unforeseeable Emergency) for a period of not less than five (5) years after the Participant’s Separation from Service.

C.  Certain Distributions.  

		
	(i)
	Death Before All Payments Made.  If a Participant should die before full payment of all amounts in his or her Deferred Compensation Account, the Corporation shall, in the discretion of the Plan Administrator, either pay or continue to pay the unpaid amounts to the Participant's Beneficiary: (a) in the same manner as such unpaid amounts would have been paid to the Participant; or (b) in a lump sum settlement of the remaining unpaid amount in the Participant's Deferred Compensation Account no sooner than the day after and not later than ninety (90) days following the date of the Participant's death.  

		
	(ii)
	Hardship Distributions.  

		
	(a)
	Grandfathered Amounts.  The Plan Administrator may, in its discretion, accelerate the payments of Grandfathered Amounts without the consent of the Participant or the Participant's Beneficiary, estate or any other person or persons claiming through or under him or her.  In making such determinations, due consideration may be given to the health, financial circumstances and family obligations of the Participant. In this regard, the Participant (or after his or her death, his or her Beneficiary) may be consulted; however, he or she (or such Beneficiaries) shall have no voice in the decision reached.

		
	(b)
	Non-Grandfathered Amounts.  A Participant may request a distribution of all or part of his or her Non-Grandfathered Amounts upon the occurrence of an Unforeseeable Emergency.  The amount of this distribution, however, may not be greater than the amount reasonably necessary to satisfy the Unforeseeable Emergency or, if less, the amount of the Participant’s Non-Grandfathered Amounts as of the distribution date.  As a condition of receiving a distribution under this Section 5.C.(ii)(b), the Participant must file a written application with the Plan Administrator specifying the nature of the Unforeseeable Emergency and the amount needed to address that Unforeseeable Emergency and supplying any other information the Committee, in its discretion, may need to ensure that the conditions specified in this Section 5.C.(ii)(b) are satisfied.  Notwithstanding the foregoing, a distribution on account of an Unforeseeable Emergency may not be made to the extent that such Unforeseeable Emergency is or may be relieved through reimbursement or compensation from insurance or otherwise, by liquidation of the Participant’s assets, to the extent the liquidation of such assets would not cause severe financial hardship, or by cessation of deferrals under the Plan.  

		
	(iii)
	Six-Month Delay for Specified Employees.  If on the date of his or her Separation from Service, a Participant is a “specified employee” within the meaning of Section 409A of the Code and as determined under the Company’s policy for determining specified employees, all Non-Grandfathered Amounts required to be delayed pursuant to Section 409A(a)(2)(B) of the Code shall be paid on the first business day of the seventh (7th) month following the date of the Separation from Service (or, if earlier, the date of death).  The first payment made following such delay shall include the cumulative amount of any amounts that could not be paid or provided during such period.  

		
	(iv)
	Income Inclusion under Section 409A of the Code.  The Plan Administrator may accelerate the time or schedule of a distribution to a Participant at any time the Plan fails to meet the requirements of Section 409A of the Code and the regulations promulgated thereunder.  Such payment may not exceed the amount required to be included in income as a result of the failure to comply with the requirements of Section 409A of the Code and the regulations promulgated thereunder.

D.  Designation of Beneficiary.  In the event of the Participant’s death, his or her Deferred Compensation Account shall be paid to his or her designated Beneficiary.  If there is no designated Beneficiary or there is no designated Beneficiary surviving at the Participant's death, payment of the Participant's Deferred Compensation Account shall be made in accordance with the following priority: 

		
	(i)    
	Spouse;

		
	(ii)   
	Natural and adopted children or their issue, per stirpes;

		
	(iii) 
	Parents or the survivor of them;

		
	(iv)   
	Brothers and sisters or their issue, per stirpes; or 

		
	(v)    
	Other heirs-at-law; and if payable to more than one person in a class, all persons in that class shall share equally.

If a Beneficiary survives the Participant but dies before receiving the entire death benefit otherwise payable (and the Beneficiary is not survived by a second Beneficiary, or the second Beneficiary also dies), and such Beneficiary has not effectively designated a Beneficiary to whom his or her Plan benefits are to be paid if the Beneficiary dies before receipt of all such benefits, the remainder shall be paid to the heir or heirs of the last surviving Beneficiary in accordance with priorities (i) through (v) above. 

E.  Taxes.  To the extent required by law, the Corporation shall withhold from other amounts owed to a Participant or require the Participant to remit to the Corporation or applicable Affiliate an amount sufficient to satisfy federal, state and local withholding tax requirements on any distribution from a Participant’s Deferred Compensation Account or on the vesting, payment or cancellation of amounts owed to the Participant under the Plan.  Determinations by the Plan Administrator as to withholding shall be binding on the Participant and any applicable Beneficiary.

Section 6.   ASSIGNMENT OR ALIENATION

The right of a Participant, Beneficiary or any other person to the payment of a benefit under this Plan may not be assigned, transferred, pledged or encumbered except by will or by the laws of descent and distribution. 

Section 7.   PLAN ADMINISTRATION

The Plan Administrator will have the right to interpret and construe the Plan and to determine all questions of eligibility and of status, rights and benefits of Participants and all other persons claiming benefits under the Plan.  In all such interpretations and constructions, the Plan Administrator's determination will be based upon uniform rules and practices applied in a nondiscriminatory manner and will be binding upon all persons affected thereby. Subject to the provisions of Section 8 below, any decision by the Plan Administrator with respect to any such matters will be final and binding on all parties.  The Plan Administrator will have absolute discretion in carrying out its responsibilities under this Section 7.

Section 8.  CLAIMS PROCEDURE

A.  Filing Claims.  Any Participant or Beneficiary entitled to benefits under the Plan may file a claim request with the Plan Administrator.

B.  Notification to Claimant.  If a claim request is wholly or partially denied, the Plan Administrator will furnish to the claimant a notice of the decision within ninety (90) days in writing and in a manner calculated to be understood by the claimant, which notice will contain the following information: 

		
	(i)    
	the specific reason or reasons for the denial; 

		
	(ii)    
	specific reference to pertinent Plan provisions upon which the denial is based;

		
	(iii)  
	a description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary; and 

		
	(iv)    
	an explanation of the Plan's claims review procedure describing the steps to be taken by a claimant who wishes to submit his or her claims for review.

C.  Review Procedure.  A claimant or his or her authorized representative may, with respect to any denied claim:

		
	(i)     
	request a review upon a written application filed within sixty (60) days after receipt by the claimant of written notice of the denial of his or her claim;

		
	(ii)   
	review pertinent documents; and 

		
	(iii)   
	submit issues and comments in writing.

Any request or submission will be in writing and will be directed to the Plan Administrator (or its designee).  The Plan Administrator (or its designee) will have the sole responsibility for the review of any denied claim and will take all steps appropriate in the light of its findings.

D.  Decision on Review.  The Plan Administrator (or its designee) will render a decision upon review.  If special circumstances (such as the need to hold a hearing on any matter pertaining to the denied claim) warrant additional time, the decision will be rendered as soon as possible, but not later than one hundred twenty (120) days after receipt of the request for review.  Written notice of any such extension will be furnished to the claimant prior to the commencement of the extension.  The decision on review will be in writing and will include specific reasons for the decision, written in a manner calculated to be understood by the claimant, as well as specific references to the pertinent provisions of the Plan on which the decision is based.  If the decision on review is not furnished to the claimant within the time limits prescribed above, the claim will be deemed denied on review. 

Section 9.   UNSECURED AND UNFUNDED OBLIGATION

Notwithstanding any provision herein to the contrary, the benefits offered under the Plan shall constitute an unfunded, unsecured promise by the Corporation and its Affiliates to pay benefits determined hereunder which are accrued by Participants.  The Corporation may, in its discretion, establish a trust to provide payment of all or a portion of the benefits payable under this Plan.  No Participant, Beneficiary or any other person shall have any interest in any particular assets of the Corporation or any Affiliate (including the assets of any trust established by the Corporation) by reason of the right to receive a benefit under the Plan and any such Participant, Beneficiary or other person shall have only the rights of a general unsecured creditor of the Corporation and its Affiliates with respect to any rights under the Plan.  Nothing contained in the Plan shall constitute a guaranty by the Corporation, any Affiliate or any other entity or person that the assets of the Corporation or its Affiliates (or any trust established by the Corporation) will be sufficient to pay any benefit hereunder.  All expenses and fees incurred in the administration of the Plan shall be paid by the Corporation or an Affiliate.

Section 10.   AMENDMENT AND TERMINATION OF THE PLAN

The Corporation reserves the right, by an action of the Plan Administrator, to amend the Plan at any time, and from time to time, in any manner which it deems desirable, provided that no amendment will adversely affect the accrued benefits of any Participant under the Plan.  The Corporation also reserves the right, by an action of the Plan Administrator, to terminate this Plan at any time without providing any advance notice to any Participant; and in the event of any Plan termination, the Corporation reserves the right to then distribute all Grandfathered Amounts allocated to Participants' Deferred Compensation Accounts.  

Notwithstanding the foregoing, the Corporation may terminate the Plan and liquidate Non-Grandfathered Amounts under the circumstances, and in accordance with the requirements, described in Treasury Regulation §1.409A-3(j)(4)(ix).

Section 11.   BINDING UPON SUCCESSORS

The Plan shall be binding upon and inure to the benefit of the Corporation, its Affiliates, any of their successors and assigns and the Participants and their heirs, executors, administrators and legal representatives.  In the event of the merger or consolidation of the Corporation or any of its Affiliates with or into any other corporation, or in the event substantially all of the assets of the Corporation or any of its Affiliates shall be transferred to another corporation, the successor corporation resulting from the merger or consolidation, or the transferee of such assets, as the case may be, shall, as a condition to the consummation of the merger, consolidation or transfer, assume the obligations of the Corporation or Affiliate hereunder and shall be substituted for the Corporation or Affiliate hereunder. 

Section 12.   NO GUARANTEE OF PLAN PERMANENCY

This Plan does not contain any guarantee of provisions for continued service as a Director to any Participant nor is it guaranteed by the Corporation or any of its Affiliates to be a permanent plan.

Section 13.   GENDER

Any reference in the Plan made in the masculine pronoun shall apply to both men and women.
 
Section 14.   INCAPACITY OF RECIPIENT

In the event that a Participant or Beneficiary is declared incompetent and a guardian, conservator or other person legally charged with the care of his or her person or of his or her estate is appointed, any benefits under the Plan to which such Participant or Beneficiary is entitled shall be paid to such guardian, conservator or other person legally charged with the care of his or her person or his or her estate. Except as provided hereinabove, when the Plan Administrator, in its sole discretion, determines that a Participant or Beneficiary is unable to manage his or her financial affairs, the Plan Administrator may, but shall not be required to, direct the Corporation to make distribution(s) to any one or more of the spouse, lineal ascendants or descendants or other closest living relatives of such Participant or Beneficiary who demonstrates to the satisfaction of the Plan Administrator the propriety of making such distribution(s).  Any payment made under this Section 14 shall be in complete discharge of any liability under the Plan for such payment.  The Plan Administrator shall not be required to see to the application of any such distribution made to any person.

Section 15.   GOVERNING LAW

This Plan shall be construed in accordance with and governed by the laws of the State of Ohio.

Section 16.   SECTION 409A OF THE CODE

It is intended that Non-Grandfathered Amounts under this Plan comply with Section 409A of the Code and the regulations promulgated thereunder (and any subsequent notices or guidance issued by the Internal Revenue Service), and the Plan will be interpreted, administered and operated accordingly.  Nothing herein shall be construed as an entitlement to or guarantee of any particular tax treatment to a Participant.  None of the Corporation, any Affiliate, the Plan Administrator or any other person shall have any liability in the event this Plan fails to comply with the requirements of Section 409A of the Code.

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