Document:

Exhibit 10.5

    
      

    

    Exhibit
      10.5

     

    

      

       

      

      

      DELANCO
        FEDERAL SAVINGS BANK

      

      

      BOARD
        OF DIRECTORS RETIREMENT PLAN

      

      

      Effective
        January 1, 2002

       

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      DELANCO
        FEDERAL SAVINGS BANK

       

      BOARD
        OF DIRECTORS

      

      RETIREMENT
        PLAN

      

      (Effective
        January 1, 2002)

       

       

               
        ARTICLE 1.     Purpose.

      

            The
        purpose of the Delanco
        Federal Savings Bank Board of Directors Retirement Plan is to provide monthly
        retirement benefits to Directors of Delanco Federal Savings Bank who have
        provided expertise in enabling the Bank to experience successful operation,
        growth and development. The Plan is effective January 1, 2002.

      

               
        ARTICLE 2.     Definitions.

      

      2.1     
        “Actuarially
        Equivalent” means the Annual Retirement Benefit of equivalent value based upon
        (A) the 1983 Group Annuity Mortality Table based on sex distinct mortality
        rates, and (B) a 7% interest rate.

      

      2.2     
        “Annual
        Retirement Benefit” means the annual retirement benefit set forth in Article 4
        of the Plan.

      

      2.3     
        “Bank”
        means Delanco Federal Savings Bank, and any successor bank or trust company
        or
        other financial institution which shall continue to maintain the Plan set
        forth
        herein.

      

      2.4     
        “Beneficiary”
        means the person or persons duly designated by a Participant to receive Plan
        benefits payable in the event of a Participant’s death, if applicable, under the
        Section 4.2 one-hundred and twenty (120) month period certain and life optional
        form of benefit, or fifty percent (50%) or one-hundred (100%) joint survivor
        optional forms of benefit, including any designated contingent beneficiary
        or
        beneficiaries. Such designation may be changed from time to time by the
        Participant by filing a new designation. Each new designation will revoke
        all
        prior designations by the Participant. In the absence of a valid Beneficiary
        designation, the Bank shall pay any such benefit to the surviving spouse,
        if
        any, of the Participant, or, in the absence of a surviving spouse, to the
        Participant’s estate.

      

      2.5     
        “Board
        of
        Directors” or “Board” means the Board of Directors of Delanco Federal Savings
        Bank, Delanco, New Jersey, and any successor bank or trust company or other
        financial institution which shall continue to maintain the Plan set forth
        herein.

       

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

       

                 
        2.6      “Cause”
        means resignation or discharge as a Director for dishonesty or willful
        misconduct involving moral turpitude.

       

                         
        2.7      “Change
        of Control” means:

       

      (i)  the
        acquisition of all or substantially all of the assets of the Bank by any
        person
        or entity, or by any persons or entities acting in concert;

      

      (ii)  the
        occurrence of any event if, immediately following such event, a majority
        of the
        members of the Board of Directors of the Bank or of any successor corporation
        shall consist of persons other than Current Members, as hereinafter defined;
        a
“Current Member” shall mean any member of the Board of Directors as of the
        Effective Date of the Plan and any successor of a Current Member whose
        nomination has been approved by a majority of the Current Members then on
        the
        Board of Directors;

      

      (iii)  the
        acquisition of beneficial ownership, directly or indirectly (as provided
        in Rule
        13d-3 under the Securities Exchange Act of 1934 (the “Act”) or any successor
        rule), of 25% or more of the total combined voting power of all classes of
        stock
        of the Bank by any person or group deemed a person under Section 13(d)(3)
        of the
        Act; or

      

      (iv)  approval
        by the stockholders of the Bank of an agreement providing for the merger
        or
        consolidation of the Bank with another corporation where the stockholders
        of the
        Bank, immediately prior to the merger or consolidation, would not beneficially
        own, directly or indirectly, immediately after the merger or consolidation,
        shares entitling such stockholders to more than 50% of the total combined
        voting
        power of all classes of stock of the surviving corporation.

       

                
        Notwithstanding the foregoing, the conversion of the Bank to a stock form
        of
        ownership, including formation of a holding company in connection with such
        conversion, shall not constitute a Change of Control so long as a majority
        of
        the members of the Board of Directors shall consist of Current Members of
        the
        Board of Directors of the Bank.

      
           
        2.8      “Director”
        means a person who is elected or appointed or was previously elected or
        appointed to serve as a member of the Board of Directors of the
        Bank.

      

                 
        2.9      “Effective
        Date” means January 1, 2002.

      

                 
        2.10    “Fee”
        means the monthly amount of fee paid or payable to a Director including the
        additional fee, if any, paid for serving as the Board's Chairman.

       

      
        
           

        

        
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        2.11    “Final
        Fee” means the final Fee paid or payable to a Director prior to his or her
        Retirement Date.

       

                 
        2.12    “Participant” means a Director who is eligible to
        receive retirement benefits hereunder, in accordance with Article
        3.

       

                 
        2.13    “Plan” means the Delanco Federal Savings Bank Board of
        Directors Retirement Plan, effective January 1, 2002, and as it may be amended
        from time to time.

       

             
    2.14  
        “Retirement Date” means the first day of the calendar month following the
        lastest of (a) the Participant’s attainment of age sixty-five (65), (b) the
        Participant’s completion of one-hundred and twenty (120) months of Service and
        (c) the Participant’s retirement date. Notwithstanding the foregoing, a
        Participant with a Termination Date following completion of one-hundred and
        twenty (120) months of Service and prior to attainment of age sixty-five
        (65)
        shall have a retirement date as of the first day of the calendar month following
        the Participant’s attainment of age sixty-five (65).

      

                 
        2.15     “Service” means a Participant’s completed years of
        service (calculated as completed three hundred and sixty-five (365) day periods)
        to the Bank as a Director or as an employee of the Bank.

       

                 
        2.16      “Termination
        Date” means the date of a Participant’s termination from service as a Director
        by resignation, discharge or otherwise, prior to his or her Retirement
        Date.

       

               
        ARTICLE 3.     
Eligibility.

      

              
        Any person serving as a Director on or after the Effective Date shall be
        a
        Participant in the Plan; provided, however, that with the exception of Director
        Harry Myers, Jr., no Plan benefits will be payable in accordance with Article
        4
        prior to January 1, 2007. If a Participant, other than Harry Myers, Jr.,
        who is
        otherwise eligible for benefits in accordance with Article 4 has a Termination
        Date prior to January 1, 2007, such Participant shall commence payment of
        Plan
        benefits on January 1, 2007.

      

              
        Any Director whose service ceases as a Director for Cause, regardless of
        length
of
        Service, shall not be a Participant in the Plan and shall have no rights
        to any
        benefits under the Plan.

      

               
        ARTICLE 4.     
Benefits.

      

      4.1  An
        eligible Participant shall be paid an Annual Retirement Benefit commencing
        upon the first day of the month following his or her Retirement Date in equal
        monthly installments payable through the first day of the month coincident
        with
        or preceding the Participant's death. The monthly benefit hereunder shall
        be
        equal to four percent (4%) of the Participant’s Final Fee, multiplied by the
        Participant’s Service (with a maximum monthly benefit of eighty percent (80%)).
        In the event of a Change in Control, each Participant shall be immediately
        eligible to receive a single lump-sum cash benefit equal to the Actuarially
        Equivalent present value of his or her benefit accrued to the date of a Change
        in Control.

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

                 
        4.2  In
        lieu
        of the Annual Retirement Benefit payable in equal monthly installments during
        the eligible Participant’s lifetime, a Participant eligible to receive a benefit
        under the foregoing Section 4.1 may elect that such benefit be paid instead
        under one of the following Actuarially Equivalent optional forms of benefit:
        (a)
        one-hundred and twenty (120) month period certain and life; (b) fifty-percent
        (50%) joint and survivor monthly benefit; or (c) one-hundred percent (100%)
        joint and survivor monthly benefit. The election to receive the Annual
        Retirement Benefit in optional form shall be made prior to the commencement
        of
        payment of benefits.

       

                    
        The surviving designated Beneficiary of a deceased Participant who has elected
        the period certain and life option may designate one or more beneficiaries
        and a
        contingent beneficiary or beneficiaries to receive the balance of monthly
        installments payable hereunder in the event the surviving designated Beneficiary
        dies before all such installments have been paid. Any such designation hereunder
        may be changed from time to time by the surviving designated Beneficiary
        by
        filing a
        new
        designation. Each new designation will revoke all prior designations hereunder.
        In the absence of a valid Beneficiary designation under this paragraph, the
        balance of monthly installments payable hereunder shall be paid to the estate
        of
        the surviving designated Beneficiary of a deceased Participant.

       

      ARTICLE
        5.    Vesting.

       

               
        An eligible Participant who has a Termination Date prior to the completion
        of
        ten (10) years of Service, shall cease to be a Participant in the Plan and
        shall
        have no rights to benefits hereunder.

      

                 
        ARTICLE 6.    Death
        of a Participant.

      

                 
        6.1  Except
        as
        elected under Section 4.2, if an eligible Participant dies after the
        commencement of his or her Annual Retirement Benefit, no further benefits
        shall
        be payable from the Plan with respect to such Participant following
        death.

      

                 
        6.2  If
        an
        eligible Participant dies prior to the attainment of his or her Retirement
        Date,
        no benefits shall be payable from the Plan with respect to such
        Participant.

       

      
        
           

        

        
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        ARTICLE 7.    Unfunded
        Arrangement.

       

                
        This Plan shall be an unfunded arrangement, and shall not relate to any specific
        funds of the Bank. Payments of benefits due under the Plan shall be made
        from
        the general assets of the Bank, and a Director shall have only the rights
        of an
        unsecured creditor of the Bank with respect thereto. Notwithstanding the
        foregoing, the Bank shall provide for the funding of payments required to
        be
        made hereunder through a grantor trust.

      

      

                 
        ARTICLE 8.    Administration.

       

                
        This Plan shall be administered by the Board of Directors of the Bank, who
        shall
        have
        full authority to interpret the Plan and make all necessary factual
        determinations. No member of the Board of Directors shall be liable for any
        act
        done or determination made in good faith. The construction and interpretation
        of
        any provision of the Plan by the Board of Directors, and a determination
        by the
        Board of Directors of the amount of any Participant's benefit under the Plan,
        shall be final and conclusive.

      

      

                 
        ARTICLE 9.    Amendment
        and Termination.

       

                
        The Board of Directors may amend, modify, suspend or terminate the Plan at
        any
        time;
        provided, however, that any amendment, modification, suspension or termination
        shall not affect the rights of Participants to benefits which have accrued
        prior
        to the date of amendment.

      

      

                 
        ARTICLE 10.        
General
        Provisions.

      

      10.1  
        Non-Alienation.
        No
        Director, estate of a Director, or Beneficiary shall have
        the
        power to transfer, assign, anticipate, mortgage or otherwise encumber any
        rights
        or any
        amounts payable hereunder; nor shall any such rights or payments be subject
        to
seizure
        for the payment of any debts, judgments, alimony, or separate maintenance,
        or
        be
        transferable by operation of law in the event of bankruptcy, insolvency,
        or
        otherwise.

      

      10.2  
        Impact
        on Director Status.
        Neither
        the establishment of the Plan nor any action taken under it shall in any
        way
        obligate the Bank or the Board of Directors to nominate any Director for
        re-election or continue to retain any Director on the Board.

      

      10.3  
        Costs
        and Expenses.
        All
        costs and expenses involved in administering and paying benefits under the
        Plan
        shall be paid by the Bank.

       

      10.4  
        Entire
        Plan.
        Unless
        otherwise explicitly provided for herein, the Plan supersedes any and all
        other
        oral or written plans or agreements heretofore made relating to Director
        retirement benefits. However, the Plan shall not supersede, limit, or in
        any way
        affect the amount of compensation or benefits to which any Director would
        be
        entitled under any other agreement, plan, program or arrangement with the
        Bank,
        including, without limitation, any such agreement, plan, program or arrangement
        providing for benefits in the nature of pensions or severance pay.

      

      
        
           

        

        
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      10.5  
        Severability.
        The
        invalidity or unenforceability of any one or more provisions of the Plan
        shall
        not affect the validity or enforceability of any other provisions of the
        Plan
        which shall remain in
        full
        force and
        effect.

      

      10.6  
        Successors.
        The Plan
        shall be binding upon any successors to the Bank by merger, acquisition,
        consolidation or otherwise and any such successor shall perform the obligations
        of the Bank under the Plan in the same manner and to the same extent as the
        Bank
        would be obligated, if such succession had not taken place.

      

      10.7  
        Headings.
        The
        headings of the Articles and Sections of the Plan are inserted for convenience
        only and do not constitute a part of the Plan.

      

      10.8  
        Governing
        Law.
        The Plan
        shall be governed by the laws of the State of New Jersey, without
        reference
        to
        conflicts of law principles.

       

       

       

       

      6Exhibit 10.6

    
      

    

    Exhibit
      10.6

     

    

      NON-QUALIFIED
        RETIREMENT PROGRAM

      

      SELECTIVE
        INCENTIVE PLAN

      

      FOR

      

      JOHN
        W. SEIBER

      

      

      This
        Agreement is made on the 25th
        day of
        August, 1995, by and between
        Delanco
        Federal Savings
        Bank,
        a corporation
        organized and existing under the Banking Law
        of
        The United States of America, which has its principal place of business
at
        615
        Burlington Avenue, Delanco, New Jersey, hereinafter called “Bank,” and
John
        W. Seiber,
        hereinafter called “Employee.”

      

      WHEREAS,
        the Employee has rendered valuable services to the Bank in the past; and
        

      

      WHEREAS,
        it is the desire of the Bank to have the benefit of the Employee’s continued
        loyalty, service and counsel, and to ensure that the Employee or his
        beneficiaries will be entitled to a certain amount of additional compensation
        after the Employee’s retirement from active service to the Bank as a result of
        retirement or death:

      

      NOW,
        THEREFORE, in
        consideration of these premises and the
        covenants and agreements herein
        set forth, the Bank and
        the
        Employee agree as follows:

      

      First.
        Benefits Upon Retirement of Employee.

      

      The
        Bank
        agrees that
        from
        and after
        the
        Employee’s retirement at age 65, or from and after Employee’s retirement before
        age 65 due to total, permanent disability, as certified to the Bank by a
        physician of the Bank’s choice licensed to practice medicine in New Jersey, the
        Bank shall
        make monthly payments to the Employee in the amount of $1,416.67 for ten
        years
        from the
        date
        of retirement of the Employee.

      

      Said
        payments shall begin on the first day of the calendar month following retirement
        and
        on the
        first day of each month thereafter for ten years (a total of 120 such monthly
        installment payments).

      

      Subject
        to the Employer’s final approval, the Employee may elect to retire on or after
        the
        Employee’s sixty-second birthday. If the Employee retires before having attained
        age sixty-five with the Employer’s approval, the amount of the monthly benefit
        payable under this Agreement shall be $1,000.00. The monthly benefit shall
        be
        payable in 120 equal consecutive monthly installments,
        and shall be the entire and only benefit to which the Employee is entitled
        under
        this
        Agreement.

      

      If
        the
        Employee should die while
        receiving benefits under this Paragraph First
        but
        before said
        payments have been completed, the Bank shall pay the commuted value of the
        payments for
        the
        remainder of such benefit period to the beneficiary designated by the Employee
        under Paragraph Second of this Agreement.

      

      
        
           

        

        
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      Second.
        Death Benefit.

      

      If
        the
        Employee dies while in the active service of the Bank, then the Bank shall
        pay
        as a death benefit the then present value of $170,000.00 payable over ten
        years.
        Said benefit shall be payable to the Employee’s Primary Beneficiary as named in
        Schedule A which is attached hereto and made a part hereof, in a lump sum,
        payable within 90 days of the date of death of the Employee.

      

      The
        Employee shall have the right to change the Primary Beneficiary named herein
        and

      to
        designate a Contingent Beneficiary by written notice delivered to the Bank.
        If
        there is no beneficiary named to receive the said benefit, of if the designated
        Primary Beneficiary and Contingent Beneficiary have predeceased the Employee,
        then the benefit payable under this Paragraph Second shall be payable in
        a lump
        sum to the Estate of the Employee within 90 days after the qualification
        of the
        personal representative of
        the
        Estate of the Employee. Upon the death
        of
        the Primary Beneficiary during the period in which installment payments are
        being received
        under this Agreement, the unpaid installments shall be paid to the contingent
        beneficiary
        in the
        same manner as they had been paid to
        the Primary
        Beneficiary. Upon the death of both the Primary Beneficiary and the Contingent
        Beneficiary before the payment of all of the installments due under this
        Agreement, the discounted value of any such installment payments remaining
        unpaid shall be paid to the Estate of the Beneficiary who was then receiving
        installment payments under this Agreement within 30
        days
        after qualification of the personal representative
        of the Estate.

      

      Third.
        Non-Compete Agreement.

      

      The
        benefits for which provision is made in Paragraphs First and Second of this
        Agreement
        are further conditioned in that they may be suspended or reduced by the Bank,
        or
        may be
        forfeited by the acts of the Employee, in whole or in part, either before
        or
        after the Employee’s retirement, by
        and at
        the sole discretion of the Bank, should the Board of
        Directors find and determine that the Employee has become or is about to
        become
        an officer, director, agent, principal shareholder, owner, representative
        or
        employee of a corporation or any other form of business entity which conducts
        or
        is engaged in competition with the Bank or any of its subsidiaries or related
        entities, or is about to do so, within a radius of thirty (30) miles from
        615
        Burlington Avenue, Delanco, New Jersey, within the State of New Jersey, without
        having first obtained the written consent of the Bank, which written consent
        shall specifically refer to this Agreement. .

      

      Fourth.
        Unfunded Agreement.

      

      This
        Agreement is unfunded.

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      Fifth.
        Prohibition of Assignment.

      

      Neither
        the Employee, the Employee’s spouse, nor any other beneficiary under this
        Agreement shall have any power
        or
        right to transfer, assign, anticipate, hypothecate, encumber or
        otherwise alienate in any way any part or all of the amounts payable under
        this
        Agreement, nor shall such amounts be subject to seizure by any creditor of
        any
        such beneficiary, by a proceeding at law or in equity, and no such benefit
        shall
        be transferable by operation of law in the event of Bankruptcy, insolvency
        or
        death of the Employee, the Employee’s spouse, or any other
        beneficiary under this Agreement. Any such attempted assignment or transfer
        shall be void and
        of no
        effect and shall terminate this Agreement and the Bank shall thereupon have
        no
        further
        liability under this Agreement.

      

      Sixth.
        Agreement To Survive Merger, Consolidation or Acquisition.

      

      The
        Bank
        agrees that it will not merge or consolidate with, or be acquired by, any
        other
        organization, or permit its business activities
        to be taken over by any other organization
        unless and
        until
        such succeeding or surviving organization shall expressly assume the duties
        of
        the Bank as
        set
        forth in this Agreement.

      

      Seventh.
        Amendments.

      

      During
        the lifetime of the
        Employee, this
        Agreement may be amended, revoked, or supplemented at any time or from time
        to
        time in whole or in part, by the mutual written agreement
        of the Employee and the Bank, which writing shall refer specifically to this
        Agreement
        and be
        executed with dignities equal to those with which this Agreement was originally
        executed.

      

      Eighth.
        Governing Law.

      

      This
        Agreement shall be governed by the laws of the State of New Jersey, and shall
        be
        enforceable in the Courts of the State of New Jersey exclusively.

      

      Ninth.
        Severability.

      

      In
        the
        event that any term or condition contained
        in this
        Agreement shall, for any reason,
        be held
        by a court of competent jurisdiction to be invalid, unenforceable or illegal
        in
        any respect, such invalidity, illegality or unenforceability shall not affect
        any other term or condition of this Agreement, but this Agreement shall be
        construed as if such invalid, illegal or unenforceable provision, term or
        condition had never been contained herein. With respect to the provision
        relating to competition, it is specifically agreed that if such provision
        shall
        be determined to be unenforceable as agreed to herein, nevertheless, such
        provision shall be and remain valid and enforceable to the extent that the
        court
        having jurisdiction over the matter shall determine.

      

      
        
           

        

        
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      Tenth.
        Binding Agreement.

      

      This
        Agreement shall be binding upon the parties hereto, and their heirs, personal
        representatives,
        beneficiaries, and successors in interest.

      

      Eleventh.
        Attorney’s Fees And Costs.

      

      If
        any
        action at law or in equity, or any arbitration proceeding is brought to enforce
        or to interpret the terms of this Agreement, the prevailing party shall be
        entitled to recover reasonable attorney’s fees, costs, and
        necessary disbursements in
        addition to any other relief to which
        such party may be entitled.

      

      Twelfth.
        Miscellaneous Agreements.

      

      Entire
        Agreement. This
        writing constitutes the entire agreement between the parties. No
        other
        agreements or understandings, written or oral, shall be binding upon the
        parties
        hereto,
        except
        for amendments or modifications of this Agreement made in accordance with
        the
        terms hereof.

      

      Counterparts.
        This
        Agreement may be executed in multiple counterparts, any one of which when
        fully
        signed, sealed, and witnessed shall be deemed to be an original of this
        Agreement for any purpose.

      

      Paragraph
        Headings.
        The
        paragraph headings appearing in this document are for convenience only and
        shall
        not be deemed to in any way modify, expand, restrict
        or otherwise affect the text of the Agreement.

       

      
        
           

        

        
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      IN
        WITNESS WHEREOF, Delanco Federal Savings Bank has caused this Agreement to
        be
signed
        by
        its
        duly
        authorized officers and its
        common
        corporate seal to be hereunto affixed, and John
        W.
        Seiber has signed and sealed this Agreement on the day and in
        the year
        first hereinabove
        written.

      

                      Delanco
        Federal
        Savings Bank

                      By:

      

      

                      /s/
        Harry Myers,
        Jr.  

                      Harry
        Myers, Jr.,
        Chairman

      

      Attest:

      

      

      /s/
        Sally A.
        Drummond                                                                                                        /s/
        John W. Seiber

      Sally
        A.
        Drummond, Corporate
        Secretary                                                                        John
        W.
        Seiber

      

      

      In
        the
        presence of:

      

      /s/
        Douglas R. Allen, Jr. 

      As
        to
        John W. Seiber

       

       

      5

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