Document:

dramendempagt.htm

     

     

    
      

      

    

    
 

    Exhibit
10.7

     

    AMENDED
AND RESTATED EMPLOYMENT AGREEMENT

     

    THIS
AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) made in duplicate
originals this _22nd_ day of _December_, 2008, and
effective as of July 1, 2004 (unless specifically stated otherwise), is between
SUMMIT FINANCIAL GROUP, INC. (“Summit”), SUMMIT COMMUNITY BANK, INC., successor
in interest to Capital State Bank, Inc., (the “Company”), and C. DAVID ROBERTSON
(“Employee”).

     

    WHEREAS,
the Company offers the terms and conditions of employment hereinafter set forth
and the Employee has indicated his willingness to accept such terms and
conditions in consideration of his employment with the Company;

     

    WHEREAS,
Employee, Summit and Company executed an amended and restated employment
agreement on May 6, 2004, effective July 1, 2004;

     

    WHEREAS,
under Paragraph 15 said amended and restated employment agreement may be amended
by a writing signed by all the parties hereto; and

     

    WHEREAS,
the parties hereto, in the interests of clarity and for other reasons stated
herein, and for the purpose of complying with the requirements of Section 409A
of the Internal Revenue Code of 1986, as amended (the “Code”), wish to amend and
restate this Agreement, provided that all provisions applicable
to compliance under Code Section 409A shall be effective as of January 1, 2005,
and provided further that, notwithstanding any other provisions of this amended
and restated Agreement, this amendment applies only to amounts that would not
otherwise be payable in 2006, 2007 or 2008 and shall not cause (i) an amount to
be paid in 2006 that would not otherwise be payable in such year, (ii) an amount
to be paid in 2007 that would not otherwise be payable in such year, and (iii)
an amount to be paid in 2008 that would not otherwise be payable in such year,
and to the extent necessary to qualify under Transition Relief issued under said
Code Section 409A to not be treated as a change in the form and timing of a
payment under section 409A(a)(4) or an acceleration of a payment under section
409A(a)(3), Employee, by executing this Agreement, shall be deemed to have
elected the timing and form of

     

    
      
         

      

      
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distribution
provisions of this amended and restated Agreement, and to otherwise further
revise the Agreement all on or before December 31, 2008.

     

    NOW,
THEREFORE, in consideration of the mutual promises and covenants made in this
Amended and Restated Agreement, the parties agree as follows:

     

    1.           Employment.  The Company
hereby employs Employee and Employee hereby accepts employment with the Company
as President and Chief Executive Officer of the Company and member of the Board
of Directors of the Company upon the terms and conditions set forth herein
effective July 1, 2004, or such earlier date as the parties may mutually agree,
and as Executive Officer of the Company and Co-Chairman of the Board of
Directors of the Company effective June 20, 2007.

     

    2.           Term.  The term of this
Amended and Restated Agreement shall be for five (5) years from the original
effective date of July 1, 2004, unless one of the parties terminates this
Amended and Restated Agreement as provided herein.  Upon termination
of the original term of the Agreement, the Board of Directors of the Company
shall review the Agreement at least annually, and may, with the consent of the
Employee, extend this term of employment for additional one (1) year term(s), in
which case such term shall end one (1) year from the date on which it is last
renewed.

     

    3.           Duties.  Employee shall
perform and have all of the duties and responsibilities that may be assigned to
him from time to time by the Board of Directors of the
Company.  Employee shall devote his best efforts on a full-time basis
to the performance of such duties.

     

    4.           Compensation
and Benefits.  During the term
of employment, the Company agrees to pay Employee a base salary and to provide
benefits as set forth in Exhibit A, which is attached hereto and incorporated
herein by reference.

     

    5.           Termination
by the Company or Employee.  The employment of
Employee with the Company may be terminated by any one of the following means,
in which case Employee shall be entitled to such compensation as is described
below:

     

    
      
         

      

      
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    A.           Mutual
Agreement.  The Employee’s employment may be terminated by
mutual agreement of the parties upon such terms and conditions as they may
agree; provided, that
if such mutual agreement provides for any payments or in-kind benefits to be
paid or granted to Employee it shall be in writing, and provided further, that such
written mutual agreement, if required to be aggregated for Code Section 409A
purposes with this Agreement or any other agreement between Employee and Summit,
Company, or any affiliate, shall not cause this Agreement to violate Code
Section 409A or the regulations and guidance issued thereunder.

     

    
      	
               
      

            	
              B.

            	
              For
      Cause.

            

    

     

    
      	
               
      

            	
              (1)

            	
              The
      Employee’s employment may be terminated by the Company for cause
      consisting of one or more of the reasons specified in Paragraph 5(B)(2)(a)
      - (e) below; provided, however, that if the cause of termination is for a
      reason specified in Paragraph 5(B)(2)(a) below, and if in the reasonable
      judgment of the Board of Directors of the Company the damage incurred by
      the Company as a result of Employee’s conduct constituting cause is damage
      of a type that is capable of being substantially reversed and corrected,
      the Company shall give Employee thirty (30) days advance notice of the
      Company’s intention to terminate his employment for cause and a reasonable
      opportunity to cure the cause of the possible termination to the
      satisfaction of the Company.

            

    

     

    
      	
               
      

            	
              (2)

            	
              For
      purposes of this Amended and Restated Agreement, the term “cause” shall be
      defined as follows:

            

    

     

    
      	
               
      

            	
              (a)

            	
              Employee’s
      negligence, malfeasance or misfeasance in the performance of Employee’s
      duties that can reasonably be expected to have an adverse impact upon the
      business and affairs of the Company, including but not limited to
      (i) failure of Employee to ensure the overall quality of the
      

            

    

     

    
      
         

      

      
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              Company’s
      loan portfolio is maintained at a level which is satisfactory to the Board
      of Directors of the Company, and (ii) failure of the Employee to
      ensure that the Company’s loan loss experience remains at a level which is
      satisfactory to the Company’s Board of
  Directors;

            

    

     

    
      	
               
      

            	
              (b)

            	
              Employee’s
      commission of any act constituting theft, intentional wrongdoing or
      fraud;

            

    

     

    
      	
               
      

            	
              (c)

            	
              The
      conviction of the Employee of a felony criminal offense in either state or
      federal court;

            

    

     

    
      	
               
      

            	
              (d)

            	
              Any
      single act by Employee constituting gross negligence or which causes
      material harm to the reputation, financial condition or property of the
      Company; or

            

    

     

    
      	
               
      

            	
              (e)

            	
              The
      death of Employee during the term of this Amended and Restated Agreement,
      in which event the Company shall pay to the estate of the Employee any
      compensation for services rendered but unpaid prior to the Employee’s date
      of death.  Such payment shall be made in a lump sum on the first
      day of the second month following Employee’s date of
  death.

            

    

     

    
      	
               
      

            	
              (3)

            	
              The
      Board of Directors of the Company shall determine, in its sole discretion,
      whether any acts and/or omissions on the part of Employee constitute
      “cause” as defined above.  Notwithstanding the foregoing,
      Employee shall be entitled to arbitrate a finding of the Board of
      Directors of “cause” in accordance with Paragraph 9
  hereof.

            

    

     

    
      	
               
      

            	
              (4)

            	
              In
      the event that Company terminates Employee’s employment for cause (other
      than death) as defined above, which results in Employee’s Separation from
      Service, Employee shall be entitled to

            

    

     

    
      
         

      

      
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              be
      paid his regular salary and benefits up to the date of Separation from
      Service, but not any additional compensation.  Any payment to
      Employee pursuant to this Paragraph 5(B)(4) shall be paid in a lump sum on
      the date of Employee’s Separation from Service, subject to the provisions
      of Paragraph 7(D) to the extent
applicable.

            

    

     

    
      	
               
      

            	
              C.

            	
              Not for
      Cause.  Employee’s employment may be terminated by the
      Company for any reason not specified in Paragraph 5(B) above so long as
      Employee is given thirty (30) days advance written notice (or payment in
      lieu thereof).  In the event of a termination pursuant to this
      Paragraph 5(C) which results in Employee’s Separation from Service,
      Employee shall be entitled to payment from the Company equivalent to the
      base salary compensation set forth in this Amended and Restated Agreement
      for the remaining term of the Agreement or severance pay equal to six (6)
      months of base salary payments, whichever is greater.  Any
      payment to Employee pursuant to this Paragraph 5(C) shall be paid in a
      lump sum on the date of Employee’s Separation from Service, subject to the
      provisions of Paragraph 7(D) to the extent
  applicable.

            

    

     

    
      	
               
      

            	
              D.

            	
              Change in
      Control.  Exhibit B hereto sets forth the rights and
      responsibilities of the parties in the event of a change in control, as
      defined therein, and is incorporated herein by reference. Provided, that if
      Employee is entitled to payments upon Separation from Service under this
      Agreement and also under Exhibit B hereto, the provisions of Exhibit B
      shall apply in lieu of the provisions of this
  Agreement.

            

    

     

    6.           Noncompetition
and Nonsolicitation.  In consideration
of the covenants set forth herein, including but not limited to the severance
pay set forth in Paragraph 5 and Exhibit A, Employee agrees as
follows:

     

    
      	
               
      

            	
              A.

            	
              For
      a period of three (3) years after Employee’s employment with the Company
      is terminated by Employee for any reason other
  than

            

    

     

    
      
         

      

      
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              Employee’s
      disability or Good Reason (as that term is defined in Exhibit B hereto),
      Employee shall not, directly or indirectly, engage in the business of
      banking in the City of Charleston or the Counties of Kanawha and
      Greenbrier, West Virginia, or in any other county in which the Company has
      operating offices at the time of the termination.  For purposes
      of this Paragraph 6(A), being engaged in the business of banking shall
      mean Employee’s presence or work in a bank office in the specified
      geographic area or Employee’s solicitation of business from clients with a
      primary or principle office in the specified geographic
    area.

            

    

     

    
      	
               
      

            	
              B.

            	
              During
      Employee’s employment by the Company and for three (3) years after
      Employee’s employment with the Company is terminated by Employee for any
      reason other than Employee’s disability, Employee shall not, on his own
      behalf or on behalf of any other person, corporation or entity, either
      directly or indirectly, solicit, induce, recruit or cause another person
      in the employ of the Company or its affiliates to terminate his or her
      employment for the purpose of joining, associating or becoming an employee
      with any business which is in competition with any business or activity
      engaged in by the Company or its
affiliates.

            

    

     

    
      	
               
      

            	
              C.

            	
              Employee
      further recognizes and acknowledges that in the event of the termination
      of Employee’s employment with the Company for any reason other than
      Employee’s disability, (1) a breach of the obligations and conditions set
      forth herein will irreparably harm and damage the Company; (2) an award of
      money damages may not be adequate to remedy such harm; and (3) considering
      Employee’s relevant background, education and experience, Employee
      believes that he will be able to earn a livelihood without violating the
      foregoing restrictions.  Consequently, Employee agrees that, in
      the event that Employee breaches any of the covenants set forth in this
      Paragraph 6, the Company and/or its affiliates shall be entitled to both a
      preliminary and permanent injunction in order to prevent the continuation
      of such harm and to recover money damages,

            

    

     

    
      
         

      

      
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              insofar
      as they can be determined, including, without limitation, all costs and
      attorneys’ fees incurred by the Company in enforcing the provisions of
      this Paragraph 6.  Such relief may be sought notwithstanding the
      arbitration provision set forth in Paragraph 10
  below.

            

    

     

    7.           Definitions
and Special Rules.  For purposes of
this Agreement and its Exhibits, including the Change in Control Agreement
attached hereto as Exhibit B, the following definitions and special rules shall
apply:

     

    
      	
               
      

            	
              A.

            	
              “Disability”
      shall mean a physical or mental condition rendering Employee substantially
      and permanently unable to perform the duties of an officer and director of
      a banking organization.

            

    

     

    
      	
               
      

            	
              B.

            	
              “Separation from
      Service” means the severance of Employee’s employment with Summit,
      Company, or any other affiliate for any reason.  Employee
      separates from service with Summit, Company or any other affiliate if he
      dies, retires, separates from service because of Employee’s Disability, or
      otherwise has a termination of employment with Summit, Company or any
      other affiliate.  However, the employment relationship is
      treated as continuing intact while Employee is on military leave, sick
      leave, or other bona
      fide leave of absence if the period of such leave does not exceed
      six months, or if longer, so long as Employee’s right to reemployment with
      Summit, Company or any other affiliate is provided either by statute or by
      contract.  If the period of leave exceeds six months and
      Employee’s right to reemployment is not provided either by statute or by
      contract, the employment relationship is deemed to terminate on the first
      date immediately following such six-month
      period.  Notwithstanding the foregoing, where a leave of absence
      is due to any medically determinable physical or mental impairment that
      can be expected to result in death or can be expected to last for a
      continuous period of not less than six months, where such impairment
      causes Employee to be unable to perform the duties of his position of
      employment or any substantially 

            

    

     

    
      
         

      

      
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              similar
      position of employment, a 29-month period of absence may be substituted
      for such six-month period.  In addition, notwithstanding any of
      the foregoing, the term “Separation from Service” shall be interpreted
      under this Agreement in a manner consistent with the requirements of Code
      Section 409A including, but not limited
to:

            

    

     

    
      	
               
      

            	
              (i)

            	
              an
      examination of the relevant facts and circumstances, as set forth in Code
      Section 409A and the regulations and guidance thereunder, in the case of
      any performance of services or availability to perform services after a
      purported Separation from Service,

            

    

    
      	
               
      

            	
              (ii)

            	
              in
      any instance in which Employee is participating or has at any time
      participated in any other plan which is, under the aggregation rules of
      Code Section 409A and the regulations and guidance issued thereunder,
      aggregated with this Agreement and with respect to which amounts deferred
      hereunder and under such other plan or plans are treated as deferred under
      a single plan (hereinafter sometimes referred to as an “Aggregated Plan”
      or together as the “Aggregated Plans”), then in such instance Employee
      shall only be considered to meet the requirements of a Separation from
      Service hereunder if Employee meets (a) the requirements of a Separation
      from Service under all such Aggregated Plans and (b) the requirements of a
      Separation from Service under this Agreement which would otherwise
      apply,

            

    

    
      	
               
      

            	
              (iii)

            	
              in
      any instance in which Employee is an employee and an independent
      contractor of Summit, Company or any other affiliate or any combination
      thereof, Employee must have a Separation from Service in all such
      capacities to meet the requirements of a Separation from Service
      hereunder, although, notwithstanding the foregoing, if Employee provides
      services both as an employee and a member of the Board of Directors of
      Summit, Company or any other affiliate or any combination thereof, the
      services provided as a

            

    

    
      
         

      

      
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                director
      are not taken into account in determining whether Employee has had a
      Separation from Service as an employee under this Agreement, provided that
      no plan in which Employee participates or has participated in his
      capacity as a director is an Aggregated Plan,
  and

              

      

    

    
      	
               
      

            	
              (iv)

            	
              a
      determination of whether a Separation from Service has occurred shall be
      made in accordance with Treasury Regulations Section 1.409A-1(h)(4) or any
      similar or successor law, regulation or guidance of like import, in the
      event of an asset purchase transaction as described
    therein.

            

    

     

    
      	
               
      

            	
              C.

            	
              Date Payments Deemed
      Made.  In accordance with Code Section 409A and to the
      extent permitted by said Code Section 409A and the regulations and
      guidance issued thereunder, any payment to or on behalf of Employee under
      this Agreement or its Exhibits A and B shall be treated as having been
      made on a date specified in this Agreement or in Exhibit A or B if it is
      made on a later date within Employee’s same taxable year as
      the designated date, or, if later, if made no later than the fifteenth day
      of the third month after such designated date provided
      that, in any event, Employee is not permitted, directly or indirectly, to
      designate the taxable year of any
payment.

            

    

     

    
      	
               
      

            	
              D.

            	
              Six-Month
      Delay.  Notwithstanding any other provisions of this
      Agreement or its Exhibits, including the Change in Control Agreement
      attached hereto as Exhibit B, if Employee is a Specified Employee
      (within the meaning of Code Section 409A) on Employee’s date of Separation
      from Service, then if any payment of deferred compensation (within the
      meaning of Code Section 409A) is to be made upon or based upon Employee’s
      Separation from Service other than by death, under any provision of this
      Agreement or of said Change in Control Agreement, and such payment of
      deferred compensation is to be made within six months after Employee’s
      date of Separation from Service, other than by death,
  

            

    

     

    
      
         

      

      
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              then
      such payment shall instead be made on the date which is six months after
      such Separation from Service of Employee (other than by death,) provided
      further, however, that in the case of any payment of deferred compensation
      which is to be made in installments, with the first such installment to be
      paid on or within six months after the date of Separation from Service
      other than by death, then in such event all such installments which
      would have otherwise been paid within the date which is six months after
      such Separation from Service of Employee (other than by death) shall be
      delayed, aggregated, and paid, notwithstanding any other provision of this
      Agreement or any other provision of said Change in Control Agreement, on
      the date which is six months after such Separation from Service of
      Employee (other than by death), with the remaining installments to
      continue thereafter until fully paid hereunder or under said Change in
      Control Agreement, as the case may be.  Notwithstanding any of
      the foregoing, or any other provision of this Agreement or of said Change
      in Control Agreement, no payment of deferred compensation upon or based
      upon Separation from Service may be made under this Agreement or under
      said Change in Control Agreement before the date that is six months after
      the date of Separation from Service or, if earlier, the date of death, if
      Employee is a Specified Employee on Employee’s date of Separation from
      Service.  This Paragraph 7(D) shall only apply to delay the
      payment of deferred compensation to Specified Employees as required by
      Code Section 409A and the regulations and guidance issued
      thereunder.

            

    

     

    8.           Notices.  Any notice
required or permitted to be given under this Amended and Restated Agreement
shall be sufficient if in writing and sent by registered or certified mail
listed herein; in the case of Employee, to the following address:  206
Georgetown Place, Charleston, West Virginia 25314; in the case of Summit
and the Company, addressed to H. Charles Maddy, III, in care of Summit Financial
Group, Inc., 300 North Main Street, Moorefield, WV 26836.  Any notice sent
pursuant to this paragraph shall be effective when deposited in the
mail.

     

    
      
         

      

      
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    9.           Confidential
Information.  Employee shall
not, during the term of this Amended and Restated Agreement or at any time
thereafter, directly or indirectly, publish or disclose to any person or entity
any confidential information concerning the assets, business or affairs of the
Company, including but not limited to any trade secrets, financial data,
employee or customer/client information or organizational
structure.

     

    10.           Arbitration.  Any dispute
between the parties arising out of or with respect to this Amended and Restated
Agreement or any of its provisions or Employee’s employment with the Company
shall be resolved by the sole and exclusive remedy of binding
arbitration.  Arbitration shall be conducted in Charleston, West
Virginia in accordance with the rules of the American Arbitration Association
(“AAA”).  The parties agree to select one arbitrator from an AAA
employment panel.  The arbitration shall be conducted in accordance
with the West Virginia Rules of Evidence and all discovery issues shall be
decided by the arbitrator.  The arbitrator shall supply a written
opinion and analysis of the matter submitted for arbitration along with the
decision.  The arbitration decision shall be final and subject to
enforcement in the local circuit court.

     

    11.           Entire
Agreement. This Amended and
Restated Agreement constitutes the entire Agreement between the parties and
shall supersede all prior agreements and understandings, both written and oral,
among the parties with respect to the subject matter hereof, and may not be
changed or amended except by an instrument in writing to be executed by each of
the parties hereto.

     

    12.           Severability.  If any provision
hereof, or any portion of any provision hereof, is held to be invalid, illegal
or unenforceable, all other provisions shall remain in force and effect as if
such invalid, illegal or unenforceable provision or portion thereof had not been
included herein.  If any provision or portion of any provision of this
Amended and Restated Agreement is so broad as to be unenforceable, such
provision or a portion thereof shall be interpreted to be only so broad as is
enforceable.

     

    13.           Headings.  The headings
contained in this Amended and Restated Agreement are included for convenience or
reference only and shall have no effect on the construction, meaning or
interpretation of this Amended and Restated Agreement.

     

    
      
         

      

      
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    14.           Governing
Law.  The laws of the
State of West Virginia shall govern the interpretation and enforcement of this
Amended and Restated Agreement.

     

    15.           Amendments. Any amendments to the
Agreement must be in writing and signed by all parties hereto except that
extensions of the term of this Agreement under Paragraph 2 above, may be
evidenced by minutes of a meeting of the Board of Directors, provided that (i) no
amendment to this Agreement shall be effective if it would, if effective, cause
this Agreement to violate Code Section 409A and the regulations and guidance
thereunder or cause any amount of compensation or payment hereunder to be
subject to a penalty tax under Code Section 409A and the regulations and
guidance issued thereunder, which amount of compensation or payment would not
have been subject to a penalty tax under Code Section 409A and the regulations
and guidance thereunder in the absence of such amendment and (ii) the provisions
of this Paragraph 15 are irrevocable.

     

    16.           Wavier of
Breach.  No requirement of
this Amended and Restated Agreement may be waived except by a written document
signed by the party adversely affected.  A waiver of a breach of any
provision of the Agreement by any party shall not be construed as a waiver of
subsequent breaches of that provision.

     

    17.           Counterparts.  This Amended and
Restated Agreement may be executed in counterparts, all of which shall be
considered one and the same Agreement and each of which shall be deemed an
original.

     

    
      
         

      

      
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    IN
WITNESS WHEREOF, the Company and Summit have each caused this Amended and
Restated Agreement to be executed in its corporate name by its corporate officer
thereunto duly authorized, and Employee has hereunto set his hand and seal, as
of the day and year first above written:

     

    
      	
               
      

            	
              SUMMIT
      FINANCIAL GROUP, INC.

            

    

    

    

    
      	
               
      

            	
              By:

            	
              /s/ H. Charles Maddy,
      III   

            

    

    

    

    
      	
               
      

            	
              Its:

            	
              President      

            

    

    

    

    
      	
               
      

            	
              SUMMIT
      COMMUNITY BANK, INC.

            

    

    

    
 

    
      	
               
      

            	
              By:

            	
              /s/ H. Charles Maddy,
      III

            

    

    
 

    

    
      	
               
      

            	
              Its:

            	
              Co-Chairman

            

    

    

    

    
      	
               
      

            	
              /s/ C. David
      Robertson

            

    

                     C.
David Robertson

    
      
         

      

      
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    Exhibit
A

    Compensation
and Benefits

     

    
      	
              A.

            	
              Base
      Salary.  Employee’s base salary shall be
      $142,700.  Upon consummation of the proposed consolidation of
      Capital State Bank, Inc. and Summit Community Bank, Inc., Employee’s base
      salary shall be increased to $170,000.  Thereafter, Employee’s
      base salary shall be as mutually agreed upon by Employee and
      Company.  Employee shall be considered for salary increases on
      the basis of cost of living increases and increases in
      responsibility.  In consideration of Employee’s waiver of future
      merit raises, Summit has established a Supplemental Executive Benefit Plan
      for the benefit of Employee.

            

    

     

    
      	
              B.

            	
              Bonus.  In
      addition to the base salary provided for herein, Employee shall be
      eligible for incentive bonuses subject to goals and criteria to be
      determined by the Board of Directors of the Company; provided, however, that
      any such plans, if required to be aggregated for Code Section 409A
      purposes with this Agreement or any other agreement between Employee and
      Summit, Company, or any affiliate, shall not cause this Agreement to
      violate Code Section 409A or the regulations and guidance issued
      thereunder.

            

    

     

    
      	
              C.

            	
              Other
      Compensation.  The Company shall provide the following
      other compensation to Employee, up to a maximum of $13,000 per
      year:

            

    

     

    (1)           An
amount equal to Employee’s monthly country club dues.

     

    
      	
               
      

            	
              (2)

            	
              An
      amount equal to the premiums on the life insurance policy held by Employee
      as of the effective date of this Amended and Restated
      Agreement.

            

    

     

    Employee
shall be subject to taxation on such other compensation as required by the
Internal Revenue Code. The benefits
provided under this Exhibit A Paragraph C during Employee’s taxable year shall
not affect the benefits to be provided in any other taxable year.  The
right to benefits under this Exhibit A Paragraph C is not subject to liquidation
or exchange for another benefit.  In addition, the right to benefits
under this Exhibit A Paragraph C is subject to the provisions of Paragraph 7(D)
of the Employment Agreement, to the extent applicable.  The benefits
under this Exhibit A Paragraph C shall cease upon Separation from Service
of Employee.

     

    
      	
              D.

            	
              Vacation.  Employee
      shall be entitled to all paid vacation and holidays and other paid leave
      as provided by the Company to other
employees.

            

    

     

    
      	
              E.

            	
              Fringe
      Benefits.  The Company shall afford to Employee the
      benefit of retirement plans afforded to all other Company officers,
      subject to the terms and conditions thereof.  In the event that
      Employee’s health insurance coverage is discontinued or becomes
      unavailable to him for some reason outside the control of Employee,
      Employee shall be afforded the opportunity to enroll in the Company’s
      health insurance plan; provided, however, that
      the Company may adjust the Other Compensation set forth above in Paragraph
      C in an amount equivalent to the cost of Employee’s participation in the
      Company’s health insurance plan. Provided, further, that
      any such plans, if required to be aggregated
for

            

    

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              Code
      Section 409A purposes with this Agreement or any other agreement between
      Employee and Summit, Company, or any affiliate, shall not cause this
      Agreement to violate Code Section 409A or the regulations and guidance
      issued thereunder.

            

    

     

    
      	
              F.

            	
              Business
      Expenses.  The Company shall reimburse Employee for all
      reasonable expenses incurred by Employee in carrying out his duties and
      responsibilities, all provided such expense is incurred by Employee prior
      to Separation from Service, including but not limited to reimbursing civic
      club organization dues and reasonable expenses for customer
      entertainment. The reimbursement of an eligible expense shall be made
      by Company no later than the last day of Employee’s taxable year during
      which the expense was incurred, or if later, the fifteenth day of the
      third month after such expense was incurred, and Employee is required to
      request reimbursement and substantiate any such expense no later than ten
      days prior to the last date on which Company is required to provide
      reimbursement for such expense hereunder.  The amount
      of expenses eligible for reimbursement under this Exhibit A Paragraph F
      during Employee’s taxable year shall not affect the expenses eligible for
      reimbursement in any other taxable year.  The right to
      reimbursement under this Exhibit A Paragraph F is not subject to
      liquidation or exchange for another benefit.  In addition, the
      right to reimbursement of eligible expenses under this Exhibit A Paragraph
      F is subject to the provisions of Paragraph 7(D) of the Employment
      Agreement, to the extent
applicable.

            

    

     

    
      	
              G.

            	
              Automobile.  The
      Company shall provide Employee with the use of an automobile for the
      employee’s business and personal use.  The Company shall be
      responsible for expenses associated with the vehicle including but not
      limited to taxes, gasoline, licenses, maintenance, repair, insurance and
      reasonable cellular phone charges.  Employee shall be subject to
      tax for his personal use of the vehicle in accordance with the Internal
      Revenue Code and any applicable state law.  Upon approval of the
      Company, appropriate replacement vehicles may be provided in the
      future. The benefits
      provided under this Exhibit A Paragraph G during Employee’s taxable year
      shall not affect the benefits to be provided in any other taxable
      year.  The right to benefits under this Exhibit A Paragraph G is
      not subject to liquidation or exchange for another benefit.  In
      addition, the right to benefits under this Exhibit A Paragraph G is
      subject to the provisions of Paragraph 7(D) of the Employment Agreement,
      to the extent applicable.  The benefits under this Exhibit A
      Paragraph G shall cease upon Separation from Service of
      Employee.

            

    

     

    
      	
              H.

            	
              Director’s
      Fees.  The Company shall pay Employee the same director’s
      fees as are provided to other inside officer members of the Board of
      Directors.

            

    

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    Exhibit
B

    Change
in Control Agreement

     

    
      	
              A.

            	
              Definitions.  For
      purposes of this Exhibit B, the following definitions shall
      apply:

            

    

     

    
      	
               
      

            	
              (1)

            	
              “Change
      of Control” means with respect to (i) the Company or any Affiliate for
      whom Employee is performing services at the time of the Change in Control
      Event; (ii) the Company or any Affiliate that is liable for the payment to
      Employee hereunder (or all corporations liable for the payment if more
      than one corporation is liable) but only if either the compensation
      payable hereunder is attributable to the performance of service by
      Employee for such corporation (or corporations) or there is a bona fide
      business purpose for such corporation or corporations to be liable for
      such payment and, in either case, no significant purpose of making such
      corporation or corporations liable for such payment is the avoidance of
      Federal Income tax; or (iii) a corporation that is a majority shareholder
      of a corporation identified in paragraph (i) or (ii) of this section, or
      any corporation in a chain of corporations in which each corporation is a
      majority shareholder of another corporation in the chain, ending in a
      corporation identified in paragraph (i) or (ii) of this section, a Change
      in Ownership or Effective Control or a Change in the Ownership of a
      Substantial Portion of the Assets of a Corporation as defined in Section
      409A of the Code, and the regulations or guidance issued thereunder,
      meeting the requirements of a “Change in Control Event”
      thereunder.

            

    

     

    (2)           “Company”
shall mean Summit Financial Group, Inc.

     

    
      	
               
      

            	
              (3)

            	
              “Salary”
      means the greater of the initial base salary or the average of Employee’s
      full earnings reported on IRS Form W-2 for the two full year periods
      immediately prior to the date of the consummation of the Change of Control
      or for the two full year periods immediately preceding the date of
      Separation from Service, whichever is
greater.

            

    

     

    
      	
               
      

            	
              (4)

            	
              For
      purposes of this Exhibit B, “Good Cause” has the same meaning as the term
      “cause” set forth in Paragraph 5(B)(2) of the foregoing Employment
      Agreement.

            

    

     

    
      	
               
      

            	
              (5)

            	
              “Disability”
      means a physical or mental condition rendering Employee substantially
      unable to perform the duties of an officer and director of a banking
      organization.

            

    

     

    
      	
               
      

            	
              (6)

            	
              “Retirement”
      means Separation from Service by Employee in accordance with
      Company’s (or its successor’s) retirement plan, including early retirement
      as approved by the Board of
Directors.

            

    

     

    
      	
               
      

            	
              (7)

            	
              “Good
      Reason” means

            

    

     

    
      	
               
      

            	
              (a)

            	
              A
      Change of Control in the Company (as defined above) followed
      by:

            

    

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (i)

            	
              a
      material decrease in Employee’s Salary below its level in effect
      immediately prior to the date of consummation of the Change of Control,
      without Employee’s prior written consent;
or

            

    

     

    
      	
               
      

            	
              (ii)

            	
              a
      material reduction in the importance of Employee’s job responsibilities,
      or assignment of job responsibilities inconsistent with employee’s
      responsibilities prior to the Change in Control without Employee’s prior
      written consent; or

            

    

     

    
      	
               
      

            	
              (iii)

            	
              a
      material geographical relocation of Employee without Employee’s prior
      written consent, which shall be deemed to mean relocation to an office
      more than 20 miles from Employee’s location at the time of the Change of
      Control, or the imposition of travel requirements materially inconsistent
      with those existing prior to the Change in Control without Employee’s
      prior written consent; or

            

    

     

    
      	
               
      

            	
              (b)

            	
              Failure
      of the Company to obtain assumption of this Change in Control Agreement by
      its successor as required by Paragraph E(1) below;
  or

            

    

     

    
      	
               
      

            	
              (c)

            	
              Any
      material reduction in the Employee’s authority, duties, or
      responsibilities, which shall be deemed to include removal of Employee
      from, or failure to re-elect Employee to, any of Employee’s position with
      Company immediately prior to a Change in Control (except in connection
      with the termination of Employee’s employment for Good Cause, death,
      Disability or Retirement) without Employee’s prior
  consent.

            

    

     

    Provided, that Employee
provides notice to the Company of the existence of the occurring condition
described in this Paragraph A(7) no later than ninety (90) days after the
initial occurrence thereof, and the Company fails to correct or remedy the
condition within thirty (30) days of receipt of such notice.

     

    
      	
               
      

            	
              (8)

            	
              “Wrongful
      Termination” means termination of Employee’s employment by the Company or
      its affiliates for any reason other than at Employee’s option, Good Cause
      or the death, Disability or Retirement of Employee prior to the expiration
      of eighteen (18) months after consummation of the Change of
      Control.

            

    

     

    
      	
               
      

            	
              (9)

            	
              “Separation
      from Service” means the severance of Employee’s employment with Company or
      any affiliate for any reason.  Employee separates from service
      with Company or any affiliate if he dies, retires, separates from service
      because of Employee’s Disability, or otherwise has a termination of
      employment with Company or any affiliate.  However, the
      employment relationship is treated as continuing intact while Employee is
      on military leave, sick leave, or other bona fide leave of
      absence if the period of such leave does not exceed six months, or if
      longer, so long as Employee’s right to reemployment with Company or any
      affiliate is provided either by statute or by contract.  If the
      period of leave exceeds six months and Employee’s right to reemployment is
      not provided either by

            

    

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              statute
      or by contract, the employment relationship is deemed to terminate on the
      first date immediately following such six-month
      period.  Notwithstanding the foregoing, where a leave of absence
      is due to any medically determinable physical or mental impairment that
      can be expected to result in death or can be expected to last for a
      continuous period of not less than six months, where such impairment
      causes Employee to be unable to perform the duties of his position of
      employment or any substantially similar position of employment, a 29-month
      period of absence may be substituted for such six-month
      period.  In addition, notwithstanding any of the foregoing, the
      term “Separation from Service” shall be interpreted under this Agreement
      in a manner consistent with the requirements of Code Section 409A
      including, but not limited to:

            

    

     

    
      	
               
      

            	
              (i)

            	
              an
      examination of the relevant facts and circumstances, as set forth in Code
      Section 409A and the regulations and guidance thereunder, in the case of
      any performance of services or availability to perform services after a
      purported Separation from Service,

            

    

     

    
      	
               
      

            	
              (ii)

            	
              in
      any instance in which Employee is participating or has at any time
      participated in any other plan which is, under the aggregation rules of
      Code Section 409A and the regulations and guidance issued thereunder,
      aggregated with this Agreement and with respect to which amounts deferred
      hereunder and under such other plan or plans are treated as deferred under
      a single plan (hereinafter sometimes referred to as an “Aggregated Plan”
      or together as the “Aggregated Plans”), then in such instance Employee
      shall only be considered to meet the requirements of a Separation from
      Service hereunder if Employee meets (a) the requirements of a Separation
      from Service under all such Aggregated Plans and (b) the requirements of a
      Separation from Service under this Agreement which would otherwise
      apply,

            

    

     

    
      	
               
      

            	
              (iii)

            	
              in
      any instance in which Employee is an employee and an independent
      contractor of Company or any affiliate or any combination
      thereof, Employee must have a Separation from Service in all such
      capacities to meet the requirements of a Separation from Service
      hereunder, although, notwithstanding the foregoing, if Employee provides
      services both as an employee and a member of the Board of Directors of
      Company or any affiliate or any combination thereof, the services provided
      as a director are not taken into account in determining whether Employee
      has had a Separation from Service as an employee under this Agreement,
      provided that no plan in which Employee participates or has
      participated in his capacity as a director is an Aggregated Plan,
      and

            

    

     

    
      	
               
      

            	
              (iv)

            	
              a
      determination of whether a Separation from Service has occurred shall be
      made in accordance with Treasury Regulations Section 1.409A-1(h)(4) or any
      similar or successor law, regulation or guidance of like import, in the
      event of an asset purchase transaction as described
    therein.

            

    

     

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              B.

            	
              Compensation of Employee Upon
      Separation from Service Due to Good Reason or Wrongful Termination
      within Eighteen (18) Months of a Change in
      Control.  Except as hereinafter provided, if Employee
      terminates his employment with the Company for Good Reason within eighteen
      (18) months after a Change in Control, resulting in Employee’s Separation
      from Service, or the Company terminates Employee’s employment within
      eighteen (18) months after a Change in Control in a manner constituting
      Wrongful Termination, resulting in Employee’s Separation from Service, the
      Company agrees as follows:

            

    

     

    
      	
               
      

            	
              (1)

            	
              The
      Company shall pay Employee a cash payment equal to Employee’s Salary, on a
      monthly basis, multiplied by the number of months between the date of
      Separation from Service and the date that is eighteen (18) months after
      the date of consummation of the Change of Control.  Such payment
      shall be made in a lump sum on the date of Separation from Service,
      subject to the provisions of Paragraph 7(D) of the foregoing Employment
      Agreement to the extent applicable.

            

    

     

    
      	
               
      

            	
              (2)

            	
              For
      the year in which Separation from Service occurs, Employee will be
      entitled to receive his reasonable share of the Company’s cash bonuses, if
      any, allocated in accordance with existing principles and authorized by
      the Board of Directors.  The amount of Employee’s cash incentive
      award shall not be reduced due to Employee not being actively employed for
      the full year.  Said cash bonuses, if any, will be paid to
      Employee in a lump sum on the date of Separation from Service, taking into
      account the provisions of Paragraph 7(C) of the foregoing Employment
      Agreement relating to when payments are deemed to be made, and subject to
      the provisions of Paragraph 7(D) of the foregoing Employment Agreement to
      the extent applicable.

            

    

     

    
      	
               
      

            	
              (3)

            	
              Employee
      will continue to participate, without discrimination, for the number of
      months between the date of Separation from Service and the date that is
      eighteen (18) months after the date of the consummation of the Change of
      Control in benefit plans (such as retirement, disability and medical
      insurance) maintained after any Change of Control for employees, in
      general, of the Company, or any successor organization, provided
      Employee’s continued participation is possible under the general terms and
      conditions of such plans.  In the event Employee’s participation
      in any such plan is barred, the Company shall arrange to provide Employee
      with benefits substantially similar to those to which Employee would have
      been entitled had his participation not been barred, but only for the
      period of time specified in the preceding sentence.  However, in
      no event will Employee receive from the Company the employee benefits
      contemplated by this subparagraph if Employee receives comparable benefits
      from any other source.  With respect to any benefits Employee
      receives under this Paragraph B(3), the following provisions will
      apply:  (i) in-kind benefits provided under this Paragraph B(3)
      during any taxable year of Employee shall not affect the in-kind benefits
      to be provided under this Paragraph B(3) in any other taxable year; (ii)
      if the provision of benefits under this Paragraph B(3) is to be done by
      means of reimbursement, the reimbursement of an eligible benefit expense
      under this Paragraph B(3) must be made on or before the last day of
      Employee’s taxable

            

    

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              year
      following the taxable year in which the expense was incurred, (iii) no
      rights to reimbursement or in-kind benefits under this Paragraph B(3)
      shall be subject to liquidation or exchange for any other benefit, and
      (iv) benefits provided under this Paragraph B(3) shall be subject to the
      provisions of Paragraph 7(D) of the foregoing Employment Agreement to the
      extent applicable.

            

    

     

    
      	
               
      

            	
              (4)

            	
              Paragraph
      6 (Noncompetition and Nonsolicitation) of the foregoing Employment
      Agreement shall not apply.

            

    

     

    
      	
              C.

            	
              Other
      Employment.  Employee shall not be required to mitigate
      the amount of any payment provided for in this Change in Control Agreement
      by seeking other employment.  The amount of any payment provided
      for in this Change in Control Agreement shall not be reduced by any
      compensation earned or benefits provided (except as set forth in Paragraph
      B(3) above) as the result of employment by another employer after the date
      of Separation from Service.

            

    

     

    
      	
              D.

            	
              Rights of Company
      Prior to the Change of Control.  This Change in Control
      Agreement shall not affect the right of the Company or Employee to
      terminate the foregoing Employment Agreement or the employment of Employee
      in accordance therewith; provided, however, that any termination or
      reduction in salary or benefits that takes place after discussions have
      commenced that result in a Change in Control shall be presumed (without
      clear and convincing evidence to the contrary) to be a violation of this
      Change in Control Agreement entitling Employee to the benefits hereof, so
      that any such termination by Company resulting in Employee’s Separation
      from Service either before or within eighteen (18) months after a Change
      in Control shall be deemed to be a Wrongful Termination, and all
      references in this Change in Control Agreement to Salary shall be deemed
      to mean the Salary, as defined herein, based on the earnings Employee
      would have had prior to any reduction
thereof.

            

    

     

    
      	
              E.

            	
              Successors; Binding
      Agreement.

            

    

     

    
      	
               
      

            	
              (1)

            	
              The
      Company shall 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 Employee, to expressly assume and agree to
      perform this Change in Control Agreement.  Failure of the
      Company to obtain such agreement prior to the effectiveness of any such
      succession shall be a material breach of this Change in Control Agreement
      and shall entitle Employee to compensation from the Company in the same
      amount and on the same terms as he would be entitled to hereunder if he
      terminated his employment for Good Reason hereunder, provided that Employee
      incurs a Separation from Service within eighteen (18) months after a
      Change in Control, and provided further that
      the notice and time to correct provisions of Paragraph A(7) herein are
      satisfied.

            

    

     

    
      	 
      

    

    
      	
               
      

            	
              (2)

            	
              This
      Change in Control Agreement and all rights of Employee hereunder shall
      inure to the benefit of and be enforceable by Employee’s personal or legal
      representatives, executors, administrators, successors, heirs,
      distributees, devisees, and
      legatees.  If Employee should die while any amounts would still
      be payable to him hereunder if he had continued to live, all such amounts,
      unless otherwise provided herein, shall be paid in accordance with the
      terms of this Agreement to Employee’s devisee, legatee, or other designee
      or, if there be no such designee, to Employee’s
    estate.

            

    

     

     

    
 20rmdrcontagmt.htm

     

     

    
      

      

    

    
 

    
      	
               
      

            	
              Exhibit
      10.9

            

    

     

    

    FORM
OF EXECUTIVE SALARY CONTINUATION AGREEMENT THAT SUPERSEDES AND REPLACES THE
EXECUTIVE SALARY CONTINUATION AGREEMENT EFFECTIVE JANUARY 1, 2006

    

    THIS AGREEMENT, made and
entered into as of the 1st day of January, 2008, provided, however, that all
provisions applicable to compliance under Section 409A of the Internal Revenue
Code of 1986, as amended (the “Code”) shall be effective as of January 1, 2005,
by and between Summit Community Bank, a bank, organized and existing under the
laws of the State of West Virginia (hereinafter referred to as the “Bank”), and
________________________, an Executive of the Bank (hereinafter referred to as
the “Executive”).

    

    WHEREAS, the Bank and the
Executive are currently parties to an Executive Salary Continuation Agreement
signed on July 19, 2007 and effective January 1, 2006 (which superseded and
replaced the original Agreement, an Executive Supplemental Retirement Plan
effective the 13th day
of June, 2000, and a subsequent amendment thereto), that provides for the
payment of certain benefits.  This Executive Salary Continuation
Agreement and the benefits provided hereunder shall supersede and replace the
existing Executive Salary Continuation Agreement and the benefits provided
thereby;

    

    WHEREAS, the Executive has
been and continues to be a valued Executive of the Bank who is a member of a
select group of management or a highly-compensated employee of the
Bank;

    

    WHEREAS, the purpose of this
Agreement is to further the growth and development of the Bank by providing the
Executive with supplemental retirement income, and thereby encourage the
Executive’s productive efforts on behalf of the Bank and the Bank’s
shareholders, and to align the interests of the Executive and those
shareholders;

    

    WHEREAS, it is the desire of
the Bank and the Executive to enter into this Agreement under which the Bank
will agree to make certain payments to the Executive at retirement or the
Executive’s Beneficiary in the event of the Executive’s death pursuant to this
Agreement; and

    

    WHEREAS, the Bank intends this
Agreement to comply with Final Regulations and Transition Relief promulgated by
the Internal Revenue Service pursuant to Code Section 409A, and accordingly,
notwithstanding any other provisions of this Agreement, this amendment applies
only to amounts that would not otherwise be payable in 2006, 2007 or 2008 and
shall not cause (i) an amount to be paid in 2006 that would not otherwise be
payable in such year, (ii) an amount to be paid in 2007 that would not otherwise
be payable in such year, and (iii) an amount to be paid in 2008 that would not
otherwise be payable in such year, and to the extent necessary to qualify under
such Transition Relief to not be treated as a change in the form and timing of a
payment under Code Section 409A(a)(4) or an acceleration of a payment under Code
Section 409A(a)(3), the Executive, by executing this Agreement, shall be deemed
to have elected the form and timing of distribution provisions of this
Agreement, on or before December 31, 2008.

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    ACCORDINGLY, it is intended
that the Agreement be “unfunded” for purposes of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”) and not be construed to provide
income to the participant or beneficiary under the Code, particularly Section
409A of the Code and guidance or regulations issued thereunder, prior to actual
receipt of benefits; and

    

    THEREFORE, it is agreed as
follows:

    

    I.           EFFECTIVE
DATE

     

    Except as
otherwise provided herein, the Effective Date of this Agreement shall be January
1, 2008, provided,
however, that all provisions applicable to compliance under Code Section 409A
shall be effective as of January 1, 2005.

    

    II.           FRINGE
BENEFITS

     

    The
salary continuation benefits provided by this Agreement are granted by the Bank
as a fringe benefit to the Executive and are not part of any salary reduction
plan or an arrangement deferring a bonus or a salary increase.  The
Executive has no option to take any current payment or bonus in lieu of these
salary continuation benefits except as set forth hereinafter.

    

    III.           DEFINITIONS

     

    
      	
               
      

            	
              A.

            	
              Retirement
      Date:

            

    

    If the
Executive remains in the continuous employ of the Bank until at least the
Executive’s Normal Retirement Age, (except as otherwise set forth in Paragraph
IX,) and provided that no determination of Disability of Executive, at any time
prior to Executive’s Normal Retirement Age, has been made, (regardless of any
return to active service of Executive subsequent to any such determination of
Disability,) the Executive’s Retirement Date shall be the date on which the
Executive attains the age of sixty-seven (67) years or has a Separation from
Service, whichever is later.

    

    
      	
               
      

            	
              B.

            	
              Normal Retirement
      Age:

            

    

    Normal
Retirement Age shall mean the date on which the Executive attains age
sixty-seven (67).

    

    C.           Plan
Year:

    

    Any
reference to “Plan Year” shall mean a calendar year from January 1 to December
31.  In the year of implementation, the term “Plan Year” shall mean
the period from the effective date to December 31 of the year of the effective
date.

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    D.           Termination of
Employment:

    

    Termination
of Employment shall mean voluntary resignation of employment by the Executive,
or the Bank’s discharge of the Executive without cause (i.e., a discharge of the
Executive by the Bank that does not satisfy the definition of discharge “for
cause” set forth in Subparagraph III [F]).

    

    E.           Separation from
Service:

    

    “Separation
from Service” shall mean that the Executive has experienced a Termination of
Employment from the Bank.  However, the employment relationship is
treated as continuing intact while the Executive is on military leave, sick
leave, or other bona fide leave of absence if the period of such leave does not
exceed six months, or if longer, so long as the Executive’s right to
reemployment with the Bank or any Affiliate is provided either by statute or by
contract.  If the period of leave exceeds six months and the
Executive’s right to reemployment is not provided either by statute or by
contract, the employment relationship is deemed to terminate on the first date
immediately following such six-month period.  Notwithstanding the
foregoing, where a leave of absence is due to any medically determinable
physical or mental impairment that can be expected to result in death or can be
expected to last for a continuous period of not less than six months, where such
impairment causes the Executive to be unable to perform the duties of his
position of employment or any substantially similar position of employment, a
29-month period of absence may be substituted for such six-month
period.  In addition, notwithstanding any of the foregoing, the term
“Separation from Service” shall be interpreted under this Agreement in a manner
consistent with the requirements of Code Section 409A including, but not limited
to:

    

    (i) an
examination of the relevant facts and circumstances, as set forth in Code
Section 409A and the regulations and guidance thereunder, in the case of any
performance of services or availability to perform services after a purported
Termination of Employment or Separation from Service,

    

    (ii) in
any instance in which the Executive is participating or has at any time
participated in any other plan which is, under the aggregation rules of Code
Section 409A and the regulations and guidance issued thereunder, aggregated with
this Agreement and with respect to which amounts deferred hereunder and under
such other plan or plans are treated as deferred under a single plan
(hereinafter sometimes referred to as an “Aggregated Plan” or together as the
“Aggregated Plans”), then in such instance Executive shall only be considered to
meet the requirements of a Separation from Service hereunder if such Executive
meets (a) the requirements of a Separation from Service under all such
Aggregated Plans and (b) the requirements of a Separation from Service under
this Agreement which would otherwise apply,

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

     (iii)
in any instance in which Executive is an employee and an independent contractor
of the Bank or any Affiliate or both, the Executive must have a Separation from
Service in all such capacities to meet the requirements of a Separation from
Service hereunder, although, notwithstanding the foregoing, if Executive
provides services both as an employee and a member of the Board of Directors of
the Bank or any Affiliate or both or any combination thereof, the services
provided as a director are not taken into account in determining whether the
Executive has had a Separation from Service as an employee under this Agreement,
provided that no plan in which Executive participates or has participated in his
capacity as a director is an Aggregated Plan, and

    

    (iv) a
determination of whether a Separation from Service has occurred shall be made in
accordance with Treasury Regulations Section 1.409A-1(h)(4) or any similar or
successor law, regulation or guidance of like import, in the event of an asset
purchase transaction as described therein.

    

    
      	
               
      

            	
              F.

            	
              Discharge for
      Cause:

            

    

    

    The term
“for cause” shall mean for the conviction of Executive for commission of a
felony against the Bank or any Affiliate.  If a dispute arises as to
discharge “for cause,” such dispute shall be resolved by arbitration as set
forth in this Executive Plan.  In the alternative, if the Executive is
permitted to resign due to conviction of a felony as described above, the Board
of Directors may vote to deny all benefits.  A majority decision by
the Board of Directors is required for forfeiture of the Executive’s benefits
under the preceding sentence.

    

    
      	
               
      

            	
              G.

            	
              Change of
      Control:

            

    

    

    “Change
of Control” shall mean with respect to (i) the Bank or an Affiliate for whom the
Executive is performing services at the time of the Change in Control Event;
(ii) the Bank or any Affiliate that is liable for the payment to the Executive
hereunder (or all corporations liable for the payment if more than one
corporation is liable) but only if either the deferred compensation is
attributable to the performance of service by the Executive for Bank or such
corporation (or corporations) or there is a bona fide business purpose for Bank
or such corporation or corporations to be liable for such payment and, in either
case, no significant purpose of making Bank or such corporation or corporations
liable for such payment is the avoidance of Federal Income tax; or (iii) a
corporation that is a majority shareholder of a corporation identified in
paragraph (i) or (ii) of this section, or any corporation in a chain of
corporations in which each corporation is a majority shareholder of another
corporation in the chain, ending in a corporation identified in paragraph (i) or
(ii) of this section, a Change in Ownership or Effective Control or a Change in
the Ownership of a Substantial Portion of the Assets of a Corporation as defined
in Section 409A of the Code, and the

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    regulations
or guidance issued by the Internal Revenue Service thereunder, meeting the
requirements of a “Change in Control Event” thereunder.

     

    
      	
               
      

            	
              H.

            	
              Restriction on Timing
      of Distribution:

            

    

    

    Notwithstanding
any provision of this Agreement to the contrary, distributions of deferred
compensation (within the meaning of Code Section 409A) under this Plan to the
Executive may not commence earlier than six (6) months after the date of a
Separation from Service if, pursuant to Code Section 409A and the regulations
and guidance thereunder, the Executive is considered a “specified employee” of
the Bank if any stock of the Bank or any parent thereof is publicly traded on an
established securities market or otherwise.  In the event a
distribution of deferred compensation under this Plan is delayed pursuant to
this paragraph, the originally scheduled payment shall be delayed until six
months after the date of Separation from Service and shall commence instead on
the first day of the seventh month following Separation from Service, as
follows:  if payments are scheduled under this Plan to be made in
installments, all such installment payments which would have otherwise been paid
within six (6) months after the date of a Separation from Service shall be
delayed, aggregated, and paid instead on the first day of the seventh month
after Separation from Service, after which all installment payments shall be
made on their regular schedule; if payment is scheduled under this Plan to be
made in a lump sum, the lump payment shall be delayed until six months after the
date of Separation from Service and instead be made on the first day of the
seventh month after the date of Separation from Service.  This
Subparagraph III [H] shall only apply to delay the payment of deferred
compensation to specified employees as required by Code Section 409A and the
regulations and guidance issued thereunder.

    

    
      	
               
      

            	
              I.

            	
              Beneficiary:

            

    

    

    The
Executive shall have the right to name a Beneficiary of any benefit payable
under this Agreement on the Executive’s death.  The Executive shall
have the right to name such Beneficiary at any time prior to the Executive’s
death and submit it to the Plan Administrator (or Plan Administrator’s
representative) on the form provided.  Once received and acknowledged
by the Plan Administrator, the form shall be effective.  The Executive
may change a Beneficiary designation at any time by submitting a new form to the
Plan Administrator.  Any such change shall follow the same rules as
for the original Beneficiary designation and shall automatically supersede the
existing Beneficiary form on file with the Plan Administrator.

    

    If the
Executive dies without a valid Beneficiary designation on file with the Plan
Administrator, death benefits shall be paid to the Executive’s
estate.

    

    If the
Plan Administrator determines in its discretion that a benefit is to be paid to
a minor, to a person declared incompetent, or to a person incapable of handling
the disposition of that person’s property, the Plan Administrator may
direct

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    distribution
of such benefit to the guardian, legal representative or person having the care
or custody of such minor, incompetent person or incapable person.  The
Plan Administrator may require proof of incompetence, minority or guardianship
as it may deem appropriate prior to distribution of the benefit.  Any
distribution of a benefit shall be a distribution for the account of the
Executive and the Beneficiary, as the case may be, and shall be a complete
discharge of any liability under the Agreement for such distribution
amount.

    

    
      	
               
      

            	
              J.

            	
              Disability:

            

    

    

    “Disability”
shall mean the Executive: (i) is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment
which can be expected to result in death or can be expected to last for a
continuous period of not less than twelve (12) months, or (ii) is, by reason of
any medically determinable physical or mental impairment which can be expected
to result in death or has lasted or can be expected to last for a continuous
period of not less than twelve (12) months, receiving income replacement
benefits for a period of not less than three (3) months under an accident and
health plan covering employees of the Bank.  Medical determination of
Disability may be made by either the Social Security Administration or by the
provider of an accident or health plan covering employees of the
Bank.  Upon the request of the Plan Administrator, the Executive must
submit proof to the Plan Administrator of Social Security Administration’s or
the provider’s determination.  Notwithstanding any of the foregoing,
the term “Disability” shall be interpreted under this Agreement in a manner
consistent with the requirements of Code Section 409A and the regulations and
guidance thereunder.

    

    IV.           RETIREMENT
BENEFIT AND POST-RETIREMENT DEATH BENEFIT

     

    Upon
attainment of the Retirement Date, (as set forth in Subparagraph III [A,]
subject to the provisions of Paragraph IX,) the Bank shall pay the Executive an
annual benefit equal to Fifty Thousand ($50,000), the “Retirement
Benefit.”  Said Retirement Benefit shall be paid in equal monthly
installments (1/12th of the
annual benefit) until the death of the Executive.  Said payment shall
commence the first day of the month following (i) the date of such Separation
from Service, or (ii) if applicable, in accordance with the Restriction on
Timing of Distribution, whichever is later.  Upon the death of the
Executive after attainment of the Retirement Date, (as set forth in III [A,]
subject to the provisions of Paragraph IX,) if there is a balance in the accrued
liability retirement account, an amount equal to such balance shall be paid in a
lump sum to the Beneficiary.  Said payment due hereunder shall be made
the first day of the second month following the Executive’s death.

     

    V.           DEATH
BENEFIT PRIOR TO RETIREMENT

     

    In the
event the Executive should die while actively employed by the Bank at any time
after the date of this Agreement but prior to the Executive’s Separation from
Service, and

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    prior to
any determination of Disability (as provided in Paragraph X) the Bank will pay
an amount equal to the accrued balance on the date of death of the Executive’s
accrued liability retirement account in a lump sum to the
Beneficiary.  Said payment due hereunder shall be made the first day
of the second month following the Executive’s death.

    

    VI.           BENEFIT
ACCOUNTING/ACCRUED LIABILITY RETIREMENT ACCOUNT

     

    Notwithstanding
any provision herein to the contrary, the provisions of this Paragraph VI, shall
be effective beginning January 1, 2006.  Prior to the date on which
Executive attains Executive’s Normal Retirement Age, and during the time that
Executive continues in the employment of Bank, (or after Separation from Service
but before Executive has attained Normal Retirement Age if a Change in Control
has occurred and Executive has thereafter had a Separation from Service as set
forth in Paragraph IX,) and provided this Agreement is in effect, the Bank shall
account for this benefit using Generally Accepted Accounting Principles
(“GAAP”).  Prior to the date on which Executive attains Executive’s
Normal Retirement Age and during the time that Executive continues in the
employment of Bank, and prior to any determination of Disability of Executive
prior to Executive attaining Normal Retirement Age, (or after Separation from
Service but before Executive has attained Executive’s Normal Retirement Age if a
Change in Control has occurred and Executive has had a Separation from Service
as set forth in Paragraph IX) and provided this Agreement is in effect, the Bank
shall establish an accrued liability retirement account for the Executive into
which appropriate reserves shall be accrued sufficient so that if the account
were increased ratably each year prior to Executive attaining Normal Retirement
Age and during which Executive continued in the employment of Bank (or after
Separation from Service but before Executive has attained Executive’s Normal
Retirement Age if a Change in Control has occurred and Executive has had a
Separation from Service as set forth in Paragraph IX) and using a compound
interest rate as set forth in Schedule A attached hereto and incorporated herein
by reference (provided, however, that such interest rate set forth on Schedule A
may be changed, for purposes of the calculation of the accrued liability
retirement account hereunder, by the Compensation Committee of Bank at any time
and from time to time but only in good faith and in a manner that the
Compensation Committee of the Bank reasonably determines to be consistent with
industry standards at the time of such change of interest rate herein),
sufficient funds would be available to pay the Retirement Benefit to Executive,
still assuming a compound interest rate as set forth on Schedule A (again
provided, however, as stated above, that such interest rate may be changed, for
purposes of the calculation of the accrued liability retirement account
hereunder, by the Compensation Committee of the Bank at any time and from time
to time but only in good faith and in a manner that the Compensation Committee
of the Bank reasonably determines to be consistent with industry standards at
the time of such change of interest rate herein,) for the life expectancy of
Executive, based upon the United States Life Insurance Company mortality
tables (or tables
of a reasonably comparable life insurance company if such mortality tables are
no longer available) in effect from time to time as such accruals are
made.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    The
accrued liability retirement account established hereunder shall be for
accounting and bookkeeping purposes only, and is not, nor shall be construed to
be, an account or trust for the benefit of the Executive.  Once
payments to Executive commence pursuant to Paragraphs IV, VIII, or IX, such
payments shall be applied so as to reduce the balance in the accrued liability
retirement account for purposes of any payout of an amount equal to the
remaining balance thereof under said Paragraphs.

     

    VII.           VESTING

     

    The
Executive shall be fully vested in the Retirement Benefit for purposes of any
payments to Executive pursuant to Paragraphs IV or IX hereunder.  For
all other purposes, the Executive shall vest in the Retirement Benefit in
accordance with the following schedule from the Effective Date of the original
Agreement.

     

    

    
      
        
          
            	
                     

                    Total
      Years of Employment

                    with
      the Bank from

                    Effective
      Date of

                    Original Agreement
(6/13/00)

                  	 
      
	 
      
	 
      
	
                     

                    Vested (to a maximum of
    100%)

                  
	
                    1

                  	
                      0%

                  
	
                    2

                  	
                      0%

                  
	
                    3

                  	
                      0%

                  
	
                    4

                  	
                      0%

                  
	
                    5

                  	
                    50%

                  
	
                    6

                  	
                    60%

                  
	
                    7

                  	
                    70%

                  
	
                    8

                  	
                    80%

                  
	
                    9

                  	
                    90%

                  
	
                    10
      or more

                  	
                    100%

                  

          

        

      

    

    

    

    

    VIII.         BENEFIT
UPON SEPARATION FROM SERVICE PRIOR TO RETIREMENT

     

    A.           Resignation of Employee or
Discharge Without Cause:

     

    Subject
to the provisions of Paragraph IX, (and no payment shall be made under this
Paragraph VIII if the provisions of Paragraph IX are applicable,) in the event
that the Executive shall incur a Separation from Service prior to Normal
Retirement Age, and prior to any determination of Disability, then the Bank
shall pay to the Executive an annual benefit equal to the vested percentage of
the Retirement Benefit, as provided in Paragraph IV (the “Vested
Benefit”).  Said Vested Benefit shall be paid in equal monthly
installments (1/12th of the annual Vested Benefit) commencing the first day of
the month following (i) the date of attainment of Normal Retirement Age or (ii)
if applicable, in accordance with the Restriction on Timing of Distribution,
whichever is later, until the death of the Executive.

     

     

     

    

    
      
        
           

        

        
          8

          
            

          

        

        
           

        

      

    

    

    Upon the
death of the Executive after commencement of payments provided for in this
paragraph, if there is a balance remaining in the accrued liability retirement
account, an amount equal to such balance shall be paid in a lump sum to the
Beneficiary.  Said payment due hereunder shall be made the first day
of the second month following the Executive’s death.

     

    In the
event the Executive’s death should occur after Separation from Service under
this Section VIII but prior to the commencement of payments provided for in this
paragraph, an amount equal to the balance in the accrued liability retirement
account shall be paid in a lump sum to the Beneficiary.  Said payment
due hereunder shall be made the first day of the second month following the
decease of the Executive.

     

    B.           Discharge For Cause or Upon
Vote to Deny All Benefits:

    

    In the
event the Executive shall be discharged for cause at any time, or should the
Board vote to deny all benefits following a discharge for cause as set forth in
Subparagraph III [F], this Agreement shall terminate and all benefits provided
herein shall be forfeited.

     

    IX.           CHANGE
OF CONTROL

     

    If the
Executive suffers a Separation from Service prior to attaining Normal Retirement
Age and within two years after a Change of Control (provided that there has been
no determination of Disability prior to such Separation from Service), then the
Executive shall receive the Retirement Benefit described in Paragraph IV as if
the Executive had been continuously employed by the Bank until the Executive’s
Normal Retirement Age, except that payments under this Paragraph IX shall be
paid in equal monthly installments commencing the first day of the month
following (i) the date of attainment of Normal Retirement Age or (ii) if
applicable, in accordance with the Restriction on Timing of Distribution,
whichever is later, until the death of the Executive.  The Executive
will also remain eligible for all promised death benefits in this
Agreement.  In addition, no sale, merger or consolidation of the Bank
shall take place unless the new or surviving entity expressly acknowledges the
obligations under this Agreement and agrees to abide by its terms.

    

    
      	
              X.  

            	
              DISABILITY

            

    

     

    
      	
               
      

            	
              In
      the event that a determination of Disability is made respecting the
      Executive, during any period of employment prior to Executive attaining
      Normal Retirement Age (and the Executive, notwithstanding any other
      provision of this Agreement, including but not limited to any provision of
      Subparagraph III [J,] shall not be considered disabled for purposes of
      this Paragraph X if the Executive has had a Separation from Service prior
      to such Disability, without returning to active employment with the Bank
      and being actively employed with the Bank at the time of such Disability,
      even if such Separation of Service has taken place after a Change in
      Control and Executive, although no longer employed by
  

            

    

    

    
      
        
           

        

        
          9

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              Bank,
      may be eligible for a Retirement Benefit pursuant to Paragraph IX or
      otherwise), the Bank shall establish an account (hereinafter sometimes
      referred to as the “Disability Account”) in an amount equal to the balance
      as of the date of Disability of Executive of the accrued liability
      retirement account established on the Executive’s behalf pursuant to this
      Agreement, (provided that the Bank shall be required to do so only once
      for each Executive, and with respect to an Executive who has a
      determination of Disability prior to Normal Retirement Age and who returns
      to active employment with the Bank and a subsequent determination of
      Disability, also prior to Normal Retirement Age, is made respecting the
      Executive, the Bank shall not be required to establish a Disability
      Account other than any Disability Account established upon the first
      determination of Disability of the Executive.)  Interest at a
      rate equivalent to the Moody’s Seasoned Baa Corporate Bond Yield per annum
      then in effect (or if no such rate is then published or in effect, then at
      the rate equivalent to the yield of reasonably comparable instruments
      selected by the Compensation Committee of the Bank) shall be accrued and
      added to the Disability Account and distributions subtracted therefrom
      until complete distribution hereunder.  Upon Executive attaining
      Normal Retirement Age after a determination of Disability, the Bank shall
      distribute to the Executive, (commencing on the first day of the month
      following the date the Executive attains the Executive’s Normal Retirement
      Age, and subject to the ‘Restriction on Timing of Distribution’ as defined
      in this Agreement,) an amount equal to the balance in the Disability
      Account of Executive in One Hundred Twenty (120) equal monthly
      installments.  In the event of the death of Executive after a
      determination of Disability and regardless of whether Executive has
      attained Normal Retirement Age, any portion of any Disability Account of
      Executive not yet distributed to Executive hereunder shall be distributed
      in a lump sum to the Beneficiary.  Said payment due hereunder
      shall be made the first day of the second month following the Executive’s
      death.  After a determination of Disability prior to Executive’s
      Normal Retirement Age, no other benefits than those set forth in this
      Paragraph X will be owed or payable to the Executive or any Beneficiary
      under this Agreement under any circumstances, including but not limited
      to, during the period of Disability, upon death, upon attaining Normal
      Retirement Age or Retirement Date, or in the event of any subsequent
      return to active service or subsequent period of
      Disability.  The Disability Account established hereunder shall
      be for accounting and bookkeeping purposes only, and is not, nor shall be
      construed to be, an account or trust for the benefit of the
      Executive.  Once payments to Executive commence pursuant to this
      Paragraph X, such payments shall be applied so as to reduce the balance in
      the Disability Account for purposes of any payout of an amount equal to
      the remaining balance thereof.

            

    

    

    
      	
              XI.

            	
              RESTRICTION
      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 Executive
      Plan.  The Executive, their beneficiary(ies), or any successor
      in interest 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 

    

    
      
        
           

        

        
          10

          
            

          

        

        
           

        

      

    

    

    undertaken
by this Executive Plan or to refrain from funding the same and to determine the
extent, nature and method of such funding.  Should the Bank elect to
fund this Executive Plan, 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 any Executive be deemed to have
any lien, right, title or interest in any specific funding investment or assets
of the Bank.

    

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

     

    XII.          MISCELLANEOUS

     

    
      	
               
      

            	
              A.

            	
              Alienability and
      Assignment Prohibition:

            

    

    

    Neither
the Executive, nor the Executive’s surviving spouse, nor any other
beneficiary(ies) under this Executive Plan 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 Executive or the
Executive’s beneficiary(ies), nor be transferable by operation of law in the
event of bankruptcy, insolvency or otherwise.  In the event the
Executive 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
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 agree, in writing, to assume and discharge the duties and
obligations of the Bank under this Executive Plan.  This Executive
Plan shall be binding upon the parties hereto, their successors, beneficiaries,
heirs and personal representatives.

    

    
      	
               
      

            	
              C.

            	
              Amendment or
      Revocation:

            

    

    

    It is
agreed by and between the parties hereto that, during the lifetime of the
Executive, this Agreement may be amended or revoked at any time or times, in
whole or in part, by the mutual written consent of the Executive and the
Bank.  Any such amendment shall not be effective to decrease or
restrict any Executive’s accrued benefit under this Agreement, determined as of
the date of amendment, unless agreed to in writing by the Executive, and
provided further, no amendment shall be made, or if made, shall be effective, if
such amendment would cause the 

    

    
      
        
           

        

        
          11

          
            

          

        

        
           

        

      

    

    

    Agreement
to violate Code Section 409A.  In the event this Agreement is
terminated, such termination shall not cause acceleration of a distribution of
benefits, except under limited circumstances as permitted under Code Section
409A and the regulations and guidance issued thereunder (e.g., 30 days before or 12
months after a Change of Control event, upon termination of all arrangements of
the same type, or upon corporate dissolution or bankruptcy).

    

    
      	
               
      

            	
              D.

            	
              Gender:

            

    

    

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

    

    
      	
               
      

            	
              E.

            	
              Headings:

            

    

    

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

    

    
      	
               
      

            	
              F.

            	
              Applicable
      Law:

            

    

    

    The laws
of the State of West Virginia shall govern the validity and interpretation of
this Agreement.

    

    
      	
               
      

            	
              G.

            	
              Partial
      Invalidity:

            

    

    

    If any
term, provision, covenant, or condition of this Executive Plan is determined by
an arbitrator or a court, as the case may be, to be invalid, void, or
unenforceable, such determination shall not render any other term, provision,
covenant, or condition invalid, void, or unenforceable, and the Executive Plan
shall remain in full force and effect notwithstanding such partial
invalidity.

    

    
      	
               
      

            	
              H.

            	
              Not a Contract of
      Employment:

            

    

    

    This
Agreement shall not be deemed to constitute a contract of employment between the
parties hereto, nor shall any provision hereof restrict the right of the Bank to
discharge the Executive, or restrict the right of the Executive to terminate
employment.

    

    
      	
               
      

            	
              I.

            	
              Tax
      Withholding:

            

    

    

    The Bank
shall withhold any taxes that are required to be withheld, under federal, state
or local tax laws, including without limitation under Section 409A of the Code
and regulations thereunder, from the benefits provided under this
Agreement.  The Executive acknowledges that the Bank’s sole liability
regarding taxes is to forward any amounts withheld to the appropriate taxing
authority(ies).

     

    
      
        
           

        

        
          12

          
            

          

        

        
           

        

      

    

    
 

    
      	
               
      

            	
              J.

            	
              Opportunity to Consult
      with Independent Advisors:

            

    

     

    The
Executive acknowledges that he has been afforded the opportunity to consult with
independent advisors of his choosing including, without limitation, accountants
or tax advisors and counsel regarding both the benefits granted to him under the
terms of this Agreement and the:  (i) terms and conditions which may
affect the Executive’s right to these benefits; and (ii) personal tax effects of
such benefits including, without limitation, the effects of any federal or state
taxes, Section 280G of the Code, Section 409A of the Code and guidance or
regulations thereunder, and any other taxes, costs, expenses or liabilities
whatsoever related to such benefits, which in any of the foregoing instances the
Executive acknowledges and agrees shall be the sole responsibility of the
Executive notwithstanding any other term or provision of this
Agreement.  The Executive further acknowledges and agrees that the
Bank shall have no liability whatsoever related to any such personal tax effects
or other personal costs, expenses, or liabilities applicable to the Executive
and further specifically waives any right for himself or herself, and his or her
heirs, beneficiaries, legal representative, agents, successor and assign to
claim or assert liability on the part of the Bank related to the matters
described above in this paragraph.  The Executive further acknowledges
that he has read, understands and consents to all of the terms and conditions of
this Agreement, and that he enters into this Agreement with a full understanding
of its terms and conditions.

    

    
      	
               
      

            	
              K.

            	
              Permissible
      Acceleration Provision:

            

    

    

    Under
Code Section 409A(a)(3), a payment of deferred compensation may not be
accelerated except as provided in regulations by the Code.  Certain
permissible payment accelerations include payments necessary to comply with a
domestic relations order, payments necessary to comply with certain conflict of
interest rules, payments intended to pay employment taxes, and certain de
minimis payments related to the Executive’s termination of the Executive’s
interest in the plan.  Any permissible payment accelerations under
this Agreement shall be at the discretion of Bank and shall be consistent with
the requirements of Code Section 409A and the regulations and guidance issued
thereunder.

    

    L.           Supersede and Replace Entire
Agreement:

    

    This
Agreement shall supersede the Executive Salary Continuation Agreement signed on
July 19, 2007 and effective January 1, 2006 (which superseded and replaced the
original Agreement, an Executive Supplemental Retirement Plan effective June 13,
2000), and shall replace the entire Agreement of the parties pertaining to this
particular Executive Salary Continuation Agreement.

    

    

    
      
        
           

        

        
          13

          
            

          

        

        
           

        

      

    

    

    
      	
              XIII.

            	
              ADMINISTRATIVE
      AND CLAIMS PROVISION

            

    

     

    
      	
               
      

            	
              A.

            	
              Plan
      Administrator:

            

    

    

    The “Plan
Administrator” of this Executive Plan shall be Summit Financial
Group.  As Plan Administrator, the Bank shall be responsible for the
management, control and administration of the Executive Plan.  The
Plan Administrator may delegate to others certain aspects of the management and
operation responsibilities of the Executive Plan including the employment of
advisors and the delegation of ministerial duties to qualified
individuals.

     

    B.           Claims
Procedure:

    

    a.           Filing a Claim for
Benefits:

    

    Any
insured, beneficiary, or other individual, (“Claimant”) entitled to benefits
under this Executive Plan will file a claim request with the Plan
Administrator.  The Plan Administrator will, upon written request of a
Claimant, make available copies of all forms and instructions necessary to file
a claim for benefits or advise the Claimant where such forms and instructions
may be obtained.  If the claim relates to disability benefits, then
the Plan Administrator shall designate a sub-committee to conduct the initial
review of the claim (and applicable references below to the Plan Administrator
shall mean such sub-committee).

    

    
      	
               
      

            	
              b.

            	
              Denial of
      Claim:

            

    

    

    
      	
               
      

            	
              A
      claim for benefits under this Executive Plan will be denied if the Bank
      determines that the Claimant is not entitled to receive benefits under the
      Executive Plan.  Notice of a denial shall be furnished the
      Claimant within a reasonable period of time after receipt of the claim for
      benefits by the Plan Administrator.  This time period shall not
      exceed more than ninety (90) days after the receipt of the properly
      submitted claim.  In the event that the claim for benefits
      pertains to disability, the Plan Administrator shall provide written
      notice within forty-five (45) days.  However, if the Plan
      Administrator determines, in its discretion, that an extension of time for
      processing the claim is required, such extension shall not exceed an
      additional ninety (90) days.  In the case of a claim for
      disability benefits, the forty-five (45) day review period may be extended
      for up to thirty (30) days if necessary due to circumstances beyond the
      Plan Administrator’s control, and for an additional thirty (30) days, if
      necessary.  Any extension notice shall indicate the special
      circumstances requiring an extension of time and the date by which the
      Plan Administrator expects to render the determination on
      review.

            

    

    

    

    

    
      
        
           

        

        
          14

          
            

          

        

        
           

        

      

    

    

    c.           Content of
Notice:

    

    
      	
               
      

            	
              The
      Plan Administrator shall provide written notice to every Claimant who is
      denied a claim for benefits which notice shall set forth the
      following:

            

    

    

    
      	
               
      

            	
              (i.)

            	
              The
      specific reason or reasons for the
denial;

            

    

    

    
      	
               
      

            	
              (ii.)

            	
              Specific
      reference to pertinent Executive Plan provisions on which the denial is
      based;

            

    

    

    
      	
               
      

            	
              (iii.)

            	
              A
      description of any additional material or information necessary for the
      Claimant to perfect the claim, and any explanation of why such material or
      information is necessary; and

            

    

    

    
      	
               
      

            	
              (iv.)

            	
              Any
      other information required by applicable regulations, including with
      respect to disability benefits.

            

    

    

    
      	
               
      

            	
              d.

            	
              Review
      Procedure:

            

    

    

    
      	
               
      

            	
              The
      purpose of the Review Procedure is to provide a method by which a Claimant
      may have a reasonable opportunity to appeal a denial of a claim to the
      Plan Administrator for a full and fair review.  The Claimant, or
      his duly authorized representative,
may:

            

    

    

    
      	
               
      

            	
              (i.)

            	
              Request
      a review upon written application to the Plan Administrator. Application
      for review must be made within sixty (60) days of receipt of written
      notice of denial of claim.  If the denial of claim pertains to
      disability, application for review must be made within one hundred eighty
      (180) days of receipt of written notice of the denial of
      claim;

            

    

    

    
      	
               
      

            	
              (ii.)

            	
              Review
      and copy (free of charge) pertinent Executive Plan documents, records and
      other information relevant to the Claimant’s claim for
      benefits;

            

    

    

    
      	
               
      

            	
              (iii.)

            	
              Submit
      issues and concerns in writing, as well as documents, records, and other
      information relating to the claim.

            

    

    

    
      	
               
      

            	
              e.

            	
              Decision on
      Review:

            

    

    

    
      	
               
      

            	
              A
      decision on review of a denied claim shall be made in thefollowing
      manner:

            

    

    

    
      	
               
      

            	
              (i.)

            	
              The
      Plan Administrator may, in its sole discretion, hold a hearing on the
      denied claim.  If the Claimant’s initial claim is for
      disability

            

    

    

    
      
        
           

        

        
          15

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              benefits,
      any review of a denied claim shall be made by members of the Plan
      Administrator other than the original decision maker(s) and such person(s)
      shall not be a subordinate of the original decision
      maker(s).  The decision on review shall be made promptly, but
      generally not later than sixty (60) days after receipt of the application
      for review.  In the event that the denied claim pertains to
      disability, such decision shall not be made later than forty-five (45)
      days after receipt of the application for review.  If the Plan
      Administrator determines that an extension of time for processing is
      required, written notice of the extension shall be furnished to the
      Claimant prior to the termination of the initial sixty (60) day
      period.  In no event shall the extension exceed a period of
      sixty (60) days from the end of the initial period.  In the
      event the denied claim pertains to disability, written notice of such
      extension shall be furnished to the Claimant prior to the termination of
      the initial forty-five (45) day period.  In no event shall the
      extension exceed a period of thirty (30) days from the end of the initial
      period.  The extension notice shall indicate the special
      circumstances requiring an extension of time and the date by which the
      Plan Administrator expects to render the determination on
      review.

            

    

    

    
      	
               
      

            	
              (ii.)

            	
              The
      decision on review shall be in writing and shall include specific reasons
      for the decision written in an understandable manner with specific
      references to the pertinent Executive Plan provisions upon which the
      decision is based.

            

    

    

    
      	
               
      

            	
              (iii.)

            	
              The
      review will take into account all comments, documents, records and other
      information submitted by the Claimant relating to the claim without regard
      to whether such information was submitted or considered in the initial
      benefit determination.  Additional considerations shall be
      required in the case of a claim for disability benefits.  For
      example, the claim will be reviewed without deference to the initial
      adverse benefits determination and, if the initial adverse benefit
      determination was based in whole or in part on a medical judgment, the
      Plan Administrator will consult with a health care professional with
      appropriate training and experience in the field of medicine involving the
      medical judgment.  The health care professional who is consulted
      on appeal will not be the same individual who was consulted during the
      initial determination or the subordinate of such individual.  If
      the Plan Administrator obtained the advice of medical or vocational
      experts in making the initial adverse benefits determination (regardless
      of whether the advice was relied upon), the Plan Administrator will
      identify such experts.

            

    

     

     

    
      
        
           

        

        
          16

          
            

          

        

        
           

        

      

    

    
 

    
      	
               
      

            	
              (iv.)

            	
              The
      decision on review will include a statement that the Claimant is
      entitled to receive, upon request and free of charge, reasonable access
      to, and copies of, all documents, records or other information relevant to
      the Claimant’s claim for
benefits.

            

    

    

     

    
      	
               
      

            	
              f.

            	
              Exhaustion of
      Remedies:

            

    

    

    
      	
               
      

            	
              A
      Claimant must follow the claims review procedures under this Executive
      Plan and exhaust his or her administrative remedies before taking any
      further action with respect to a claim for
  benefits.

            

    

    

    
      	
              C.             

            	
              Arbitration:

            

    

    

    If
claimants continue to dispute the benefit denial based upon completed
performance of this Executive Plan or the meaning and effect of the terms and
conditions thereof, then claimants may submit the dispute to an Arbitrator in
West Virginia for final arbitration.  The Arbitrator shall be selected
by mutual agreement of the Bank and the claimants.  The Arbitrator
shall operate under the rules then in effect of the American Arbitration
Association.  The parties hereto agree that they and their heirs,
personal representatives, successors and assigns shall be bound by the decision
of such Arbitrator with respect to any controversy properly submitted to it for
determination.

    

    Where a
dispute arises as to the Bank’s discharge of the Executive “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.

     

    XIV.       TERMINATION
OR MODIFICATION OF AGREEMENT BY REASON OFCHANGES IN THE LAW, RULES OR
REGULATIONS

     

    The Bank
is entering into this Agreement upon the assumption that certain existing tax
laws, rules and regulations will continue in effect in their current
form.  If any said assumptions should change and said change has a
detrimental effect on this Executive Plan, then the Bank reserves the right to
terminate or modify this Agreement accordingly, but only to the extent necessary
to conform this Agreement to the provisions and requirements of any applicable
law (including ERISA and the Code, including, but not limited to Section 409A of
the Code and regulations thereunder).

    

    Upon a
Change of Control, the provisions of Paragraph IX respecting assumption of the
obligations of this Agreement by the successor entity shall apply.

     

    IN WITNESS WHEREOF, the
parties hereto acknowledge that each has carefully read this Agreement and
executed the original thereof on the first day set forth hereinabove, and that,
upon execution, each has received a conforming copy.

     

    
      
        
           

        

        
          17

          
            

          

        

        
           

        

      

    

     

    SUMMIT
COMMUNITY BANK

                           Moorefield, West
Virginia

    

    

    

    /s/ Teresa D.
Ely                                                                                         By: /s/ H. Charles Maddy,
III     Co-Chairman

    Witness                                                                                                (Bank Officer
other than Insured)     Title

    

    

     

    __________________                                                                                        
__________________________

    Witness                                                                                                     Employee

    

    
      
        
           

        

        
          18

          
            

          

        

        
           

        

      

    

    

    SCHEDULE
A

    to

    EXECUTIVE
SALARY CONTINUATION AGREEMENT

    BETWEEN
SUMMIT COMMUNITY BANK

    AND
______________________________

     

    

     

    This Schedule A to the Executive Salary
Continuation Agreement between Summit Community Bank and
____________________________ sets forth the rate of interest under Section VI of
the Agreement for purposes of determining the accrued liability reserve and is
incorporated as a part of the Agreement.  This Schedule A is effective
January 1, 2006, and shall remain in effect unless amended or revised according
to the provisions set forth in Section VI of the Agreement.

    

    Interest
Rate                                           6.28%

    

     

     

    
 19

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