Document:

Exhibit 10.2

 

 

FORCE
PROTECTION, INC.

 

FORM
OF INDEMNIFICATION AGREEMENT

 

THIS
INDEMNIFICATION AGREEMENT (the “Agreement”)
is made and entered into as of [DATE]
between Force Protection, Inc., a Nevada corporation (the “Company”), and [NAME] (“Indemnitee”).

 

WITNESSETH
THAT:

 

WHEREAS, highly
competent persons have become more reluctant to serve corporations as directors
and officers or in other capacities unless they are provided with adequate
protection through insurance or adequate indemnification against inordinate
risks of claims and actions against them arising out of their service to and
activities on behalf of the corporation;

 

WHEREAS, the Board
of Directors of the Company (the “Board”)
has determined that, in order to attract and retain qualified individuals, the
Company will attempt to maintain on an ongoing basis, at its sole expense,
liability insurance to protect persons serving the Company and its subsidiaries
from certain liabilities.  Although the
furnishing of such insurance has been a customary and widespread practice among
United States-based corporations and other business enterprises, the Company
believes that, given current market conditions and trends, such insurance may
be available to it in the future only at higher premiums and with more
exclusions.  At the same time, directors,
officers, and other persons in service to corporations or business enterprises
are being increasingly subjected to expensive and time-consuming litigation
relating to, among other things, matters that traditionally would have been
brought only against the Company or business enterprise itself.  The By-laws of the Company require
indemnification of the directors, officers, employees, fiduciaries and agents
of the Company.  Indemnitee may also be
entitled to indemnification pursuant to Chapter 78 - Private Corporations, of
the Nevada Revised Statutes (the “NRS”).  The NRS expressly provides that the
indemnification provisions set forth therein are not exclusive, and thereby
contemplate that contracts may be entered into between the Company and members
of the Board with respect to indemnification;

 

WHEREAS, the
uncertainties relating to such insurance and to indemnification have increased
the difficulty of attracting and retaining such persons;

 

WHEREAS, the Board
has determined that the increased difficulty in attracting and retaining such
persons is detrimental to the best interests of the Company’s stockholders and
that the Company should act to assure such persons that there will be increased
certainty of such protection in the future;

 

WHEREAS, it is
reasonable, prudent and necessary for the Company contractually to obligate
itself to indemnify, and to advance expenses on behalf of, such persons to the
fullest extent permitted by applicable law so that they will serve or continue
to serve the Company free from undue concern that they will not be so
indemnified;

 

WHEREAS, this
Agreement is a supplement to and in furtherance of any indemnification
provisions in the Articles of Incorporation and/or the By-laws of the Company
and any resolutions adopted pursuant thereto, and shall not be deemed a
substitute therefor, nor to diminish or abrogate any rights of Indemnitee
thereunder;

 

WHEREAS,
Indemnitee does not regard the protection available under the NRS, the Company’s
By-laws and insurance as adequate in the present circumstances, and may not be
willing to serve as an officer or a director without adequate protection, and
the Company desires Indemnitee to serve in such capacity.  Indemnitee is willing to serve, continue to
serve and to take on additional services for or on behalf of the Company on the
condition that he be so indemnified; and

 

 

NOW, THEREFORE, in
consideration of Indemnitee’s agreement to serve as an [officer] [director] from and after the
date hereof, the parties hereto agree as follows:

 

1.                                       Indemnity
of Indemnitee.  The Company hereby
agrees to hold harmless and indemnify Indemnitee to the fullest extent
permitted by law, as such may be amended from time to time.  In furtherance of the foregoing indemnification,
and without limiting the generality thereof:

 

(a)                                  Proceedings
Other Than Proceedings by or in the Right of the Company.  Indemnitee shall be entitled to the rights of
indemnification provided in this Section l(a) if, by reason of
his Corporate Status (as hereinafter defined), Indemnitee is, or is threatened
to be made, a party to or participant in any Proceeding (as hereinafter
defined) other than a Proceeding by or in the right of the Company.  Pursuant to this Section 1(a),
the Company shall indemnify Indemnitee against all Expenses (as hereinafter
defined), judgments, penalties, fines and amounts paid in settlement actually
and reasonably incurred by him, or on his behalf, in connection with such
Proceeding or any claim, issue or matter therein, if the Indemnitee acted in
good faith and in a manner the Indemnitee reasonably believed to be in or not
opposed to the best interests of the Company, and with respect to any criminal
Proceeding, had no reasonable cause to believe Indemnitee’s conduct was
unlawful.

 

(b)                                 Proceedings
by or in the Right of the Company. 
Indemnitee shall be entitled to the rights of indemnification provided
in this Section 1(b) if, by reason of his Corporate Status,
the Indemnitee is, or is threatened to be made, a party to or participant in
any Proceeding brought by or in the right of the Company.  Pursuant to this Section 1(b),
the Company shall indemnify Indemnitee against all Expenses and amounts paid in
settlement actually and reasonably incurred by Indemnitee, or on Indemnitee’s
behalf, in connection with such Proceeding or any claim, issue or matters
therein, if Indemnitee acted in good faith and in a manner Indemnitee
reasonably believed to be in or not opposed to the best interests of the
Company; provided, however, if applicable law so provides, no
indemnification against such Expenses shall be made in respect of any claim,
issue or matter in such Proceeding as to which Indemnitee shall have been
adjudged by a court of competent jurisdiction, after exhaustion of all appeals
therefrom, to be liable to the Company unless and to the extent that a court of
competent jurisdiction shall determine that such indemnification may be made.

 

(c)                                  Indemnification
under NRS 78.138.  Indemnitee shall
be entitled to the rights of indemnification provided under Section 1(a) and
Section 1(b) if Indemnitee is not liable pursuant to NRS 78.138.

 

(d)                                 Indemnification
for Expenses of a Party Who is Wholly or Partly Successful.  Notwithstanding any other provision of this
Agreement, to the extent that Indemnitee is, by reason of his Corporate Status,
a party to and is successful, on the merits or otherwise, in any Proceeding,
the Company shall indemnify Indemnitee to the maximum extent permitted by law,
as such may be amended from time to time, against all Expenses actually and
reasonably incurred by him or on his behalf in connection therewith.  If Indemnitee is not wholly successful in
such Proceeding but is successful, on the merits or otherwise, as to one or
more but less than all claims, issues or matters in such Proceeding, the
Company shall indemnify Indemnitee against all Expenses actually and reasonably
incurred by him or on his behalf in connection with each successfully resolved
claim, issue or matter.  For purposes of
this Section and without limitation, the termination of any claim, issue
or matter in such a Proceeding by dismissal, with or without prejudice, shall
be deemed to be a successful result as to such claim, issue or matter.

 

2.                                       Additional
Indemnity.  In addition to, and without
regard to any limitations on, the indemnification provided for in Section 1
of this Agreement, the Company shall and hereby does indemnify and hold
harmless Indemnitee, to the fullest extent permitted by law, as may be amended
from time to time, against all Expenses, judgments, penalties, fines and
amounts paid in settlement actually and reasonably incurred by him or on his
behalf if, by reason of his Corporate Status, he is, or is threatened to be
made, a party to or participant in any Proceeding (including a Proceeding by or
in the right of the Company), including, without limitation, all liability
arising out of the negligence or active or passive wrongdoing of
Indemnitee.  The only limitation that
shall exist upon the Company’s obligations

 

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pursuant to this
Agreement shall be that the Company shall not be obligated to make any payment
to Indemnitee that is finally determined (under the procedures, and subject to
the presumptions, set forth in Sections 6 and 7 hereof) to be
unlawful.

 

3.                                       Contribution.

 

(a)                                  Whether
or not the indemnification provided in Sections 1 and 2 hereof is
available, in respect of any threatened, pending or completed action, suit or
proceeding in which the Company is jointly liable with Indemnitee (or would be
if joined in such action, suit or proceeding), the Company shall pay the entire
amount of any judgment or settlement of such action, suit or proceeding without
requiring Indemnitee to contribute to such payment and the Company hereby
waives and relinquishes any right of contribution it may have against
Indemnitee.  The Company shall not enter
into any settlement of any action, suit or proceeding in which the Company is
jointly liable with Indemnitee (or would be if joined in such action, suit or
proceeding) unless such settlement provides for a full and final release of all
claims asserted against Indemnitee.

 

(b)                                 Without
diminishing or impairing the obligations of the Company set forth in the
preceding subparagraph, if, for any reason, Indemnitee shall elect or be
required to pay all or any portion of any judgment or settlement in any
threatened, pending or completed action, suit or proceeding in which the
Company is jointly liable with Indemnitee (or would be if joined in such
action, suit or proceeding), the Company shall contribute to the amount of
Expenses, judgments, fines and amounts paid in settlement actually and
reasonably incurred and paid or payable by Indemnitee in proportion to the
relative benefits received by the Company and all officers, directors or
employees of the Company, other than Indemnitee, who are jointly liable with
Indemnitee (or would be if joined in such action, suit or proceeding), on the
one hand, and Indemnitee, on the other hand, from the transaction from which
such action, suit or proceeding arose; provided, however, that
the proportion determined on the basis of relative benefit may, to the extent
necessary to conform to law, be further adjusted by reference to the relative
fault of the Company and all officers, directors or employees of the Company
other than Indemnitee who are jointly liable with Indemnitee (or would be if
joined in such action, suit or proceeding), on the one hand, and Indemnitee, on
the other hand, in connection with the events that resulted in such expenses,
judgments, fines or settlement amounts, as well as any other equitable
considerations which applicable law may require to be considered.  The relative fault of the Company and all
officers, directors or employees of the Company, other than Indemnitee, who are
jointly liable with Indemnitee (or would be if joined in such action, suit or
proceeding), on the one hand, and Indemnitee, on the other hand, shall be
determined by reference to, among other things, the degree to which their
actions were motivated by intent to gain personal profit or advantage, the
degree to which their liability is primary or secondary and the degree to which
their conduct is active or passive.

 

(c)                                  The
Company hereby agrees to fully indemnify and hold Indemnitee harmless from any
claims of contribution which may be brought by officers, directors or employees
of the Company, other than Indemnitee, who may be jointly liable with
Indemnitee.

 

(d)                                 To
the fullest extent permissible under applicable law, if the indemnification
provided for in this Agreement is unavailable to Indemnitee for any reason
whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute
to the amount incurred by Indemnitee, whether for judgments, fines, penalties,
excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in
connection with any claim relating to an indemnifiable event under this
Agreement, in such proportion as is deemed fair and reasonable in light of all
of the circumstances of such Proceeding in order to reflect (i) the
relative benefits received by the Company and Indemnitee as a result of the
event(s) and/or transaction(s) giving cause to such Proceeding;
and/or (ii) the relative fault of the Company (and its directors, officers,
employees and agents) and Indemnitee in connection with such event(s) and/or
transaction(s).

 

4.                                       Indemnification
for Expenses of a Witness. 
Notwithstanding any other provision of this Agreement, to the extent
that Indemnitee is, by reason of his Corporate Status, a witness, or is made
(or asked) to respond to discovery requests, in any Proceeding to which
Indemnitee is not a party, the

 

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Company shall
indemnify Indemnitee against all Expenses actually and reasonably incurred by
him or on his behalf in connection therewith.

 

5.                                       Advancement
of Expenses.  Notwithstanding any
other provision of this Agreement, the Company shall advance all Expenses
incurred by or on behalf of Indemnitee in connection with any Proceeding by
reason of Indemnitee’s Corporate Status within [thirty
(30)] days after the receipt by the Company of a statement or
statements from Indemnitee requesting such advance or advances from time to
time, whether prior to or after final disposition of such Proceeding.  Such statement or statements shall reasonably
evidence the Expenses incurred by Indemnitee and, if required by law at the
time of such advance, shall include or be preceded or accompanied by a written
undertaking by or on behalf of Indemnitee to repay any Expenses advanced if it
shall ultimately be determined by a court of competent jurisdiction that
Indemnitee is not entitled to be indemnified against such Expenses.  Any advances and undertakings to repay
pursuant to this Section 5 shall be unsecured and interest
free.  In furtherance of the foregoing
the Indemnitee hereby undertakes to repay such amounts advanced only if, and to
the extent that, it shall ultimately be determined by a court of competent
jurisdiction that the Indemnitee is not entitled to be indemnified by the
Company as authorized by this Agreement.

 

6.                                       Procedures
and Presumptions for Determination of Entitlement to Indemnification.  It is the intent of this Agreement to secure
for Indemnitee rights of indemnity that are as favorable as may be permitted
under the NRS and public policy of the State of Nevada.  Accordingly, the parties agree that the
following procedures and presumptions shall apply in the event of any question
as to whether Indemnitee is entitled to indemnification under this Agreement:

 

(a)                                        To
obtain indemnification under this Agreement, Indemnitee shall submit to the
Company a written request, including therein or therewith such documentation
and information as is reasonably available to Indemnitee and is reasonably
necessary to determine whether and to what extent Indemnitee is entitled to
indemnification.  The Secretary of the
Company shall, promptly upon receipt of such a request for indemnification,
advise the Board in writing that Indemnitee has requested indemnification.  Notwithstanding the foregoing, any failure of
Indemnitee to provide such a request to the Company, or to provide such a
request in a timely fashion, shall not relieve the Company of any liability
that it may have to Indemnitee unless, and to the extent that, the Company is
actually and materially prejudiced as a direct result of such failure.

 

(b)                                 Upon
written request by Indemnitee for indemnification pursuant to the first
sentence of Section 6(a) hereof, a determination with respect
to Indemnitee’s entitlement thereto shall be made in the specific case by one
of the following three methods, which shall be at the election of the
Board:  (i) by a majority vote of a
quorum consisting of Disinterested Directors (as hereinafter defined), (ii) if
a majority vote of a quorum consisting of Disinterested Directors so orders, or
if a quorum of Disinterested Directors cannot be obtained, by Independent
Counsel (as hereinafter defined) in a written opinion to the Board, a copy of
which shall be delivered to Indemnitee, or (iii) by the stockholders of
the Company.

 

(c)                                  Notwithstanding
anything to the contrary set forth in this Agreement, if a request for
indemnification is made after a Change in Control, at the election of
Indemnitee made in writing to the Company, any determination required to be
made pursuant to Section 6(b) above as to whether Indemnitee
is entitled to indemnification shall be made by Independent Counsel selected as
provided in this Section 6(c). The Independent Counsel shall be
selected by Indemnitee, unless Indemnitee shall request that such selection be
made by the Board. The party making the selection shall give written notice to
the other party advising it of the identity of the Independent Counsel so
selected. The party receiving such notice may, within seven (7) days after
such written notice of selection shall have been given, deliver to the other
party a written objection to such selection. Such objection may be asserted
only on the ground that the Independent Counsel so selected does not meet the
requirements of “Independent Counsel” as defined in Section 13
hereof, and the objection shall set forth with particularity the factual basis
of such assertion.  Absent a proper and
timely objection, the person so selected shall act as Independent Counsel.  If a written objection is made, the
Independent Counsel so selected may not serve as Independent Counsel unless and
until a court has determined that such objection is without merit.  If,

 

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within twenty (20)
days after submission by Indemnitee of a written request for indemnification
pursuant to Section 6(a) hereof, no Independent Counsel shall
have been selected (or, if selected, such selection shall have been objected
to) in accordance with this paragraph, then either the Company or Indemnitee
may petition the courts of the State of Nevada or other court of competent
jurisdiction for resolution of any objection which shall have been made by the
Company or Indemnitee to the other’s selection of Independent Counsel and/or
for the appointment as Independent Counsel of a person selected by the court or
by such other person as the court shall designate, and the person with respect
to whom an objection is favorably resolved or the person so appointed shall act
as Independent Counsel under Section 6(c) hereof.  The Company shall pay any and all reasonable
fees and expenses of Independent Counsel incurred by such Independent Counsel
in connection with acting pursuant to Section 6(b) hereof.  The Company shall pay any and all reasonable
and necessary fees and expenses incident to the procedures of this Section 6(c),
regardless of the manner in which such Independent Counsel was selected or
appointed.

 

(d)                                 If
the determination of entitlement to indemnification is to be made by
Independent Counsel pursuant to Section 6(b) hereof, the
Independent Counsel shall be selected as provided in this Section 6(d).  The Independent Counsel shall be selected by
the Board.  Indemnitee may, within ten (10) days
after such written notice of selection shall have been given, deliver to the
Company a written objection to such selection; provided, however,
that such objection may be asserted only on the ground that the Independent
Counsel so selected does not meet the requirements of “Independent Counsel” as defined in
Section 13 of this Agreement, and the objection shall set forth
with particularity the factual basis of such assertion.  Absent a proper and timely objection, the
person so selected shall act as Independent Counsel.  If a written objection is made and
substantiated, the Independent Counsel selected may not serve as Independent
Counsel unless and until such objection is withdrawn or a court has determined
that such objection is without merit. 
If, within twenty (20) days after submission by Indemnitee of a written
request for indemnification pursuant to Section 6(a) hereof,
no Independent Counsel shall have been selected (or, if selected, such
selection shall have been objected to) in accordance with this paragraph, then
either the Company or Indemnitee may petition the appropriate courts of the
State of Nevada or other court of competent jurisdiction for resolution of any
objection which shall have been made by Indemnitee to the Company’s selection of
Independent Counsel and/or for the appointment as Independent Counsel of a
person selected by the court or by such other person as the court shall
designate, and the person with respect to whom an objection is favorably
resolved or the person so appointed shall act as Independent Counsel under Section 6(b) hereof.  The Company shall pay any and all reasonable
fees and expenses of Independent Counsel incurred by such Independent Counsel
in connection with acting pursuant to Section 6(b) hereof, and
the Company shall pay any and all reasonable fees and expenses incident to the
procedures of this Section 6(d), regardless of the manner in which
such Independent Counsel was selected or appointed.

 

(e)                                  In
making a determination with respect to entitlement to indemnification
hereunder, the person or persons or entity making such determination shall
presume that Indemnitee is entitled to indemnification under this
Agreement.  Anyone seeking to overcome
this presumption shall have the burden of proof and the burden of persuasion by
clear and convincing evidence.  Neither
the failure of the Company (including by its directors or independent legal
counsel) to have made a determination prior to the commencement of any action
pursuant to this Agreement that indemnification is proper in the circumstances
because Indemnitee has met the applicable standard of conduct, nor an actual
determination by the Company (including by its directors or independent legal
counsel) that Indemnitee has not met such applicable standard of conduct, shall
be a defense to the action or create a presumption that Indemnitee has not met
the applicable standard of conduct.

 

(f)                                    Indemnitee
shall be deemed to have acted in good faith if Indemnitee’s action is based on
the records or books of account of the Enterprise (as hereinafter defined),
including financial statements, or on information supplied to Indemnitee by the
officers of the Enterprise in the course of their duties, or on the advice of
legal counsel for the Enterprise or on information or records given or reports
made to the Enterprise by an independent certified public accountant or by an
appraiser or other expert selected with reasonable care by the Enterprise.  In addition, the knowledge and/or actions, or
failure to act, of any director, officer, agent or employee of the Enterprise
shall not be imputed to Indemnitee for

 

5

 

purposes of
determining the right to indemnification under this Agreement.  Whether or not the foregoing provisions of this
Section 6(f) are satisfied, it shall in any event be presumed
that Indemnitee has at all times acted in good faith and in a manner he
reasonably believed to be in or not opposed to the best interests of the
Company.  Anyone seeking to overcome this
presumption shall have the burden of proof and the burden of persuasion by
clear and convincing evidence.

 

(g)                                 Notwithstanding anything to the contrary set
forth in this Agreement, if the person, persons or entity empowered or
selected under Section 6 to determine whether Indemnitee is
entitled to indemnification shall not have been appointed or shall not have
made a determination within sixty (60) days after receipt by the Company of the
request therefor, the requisite determination of entitlement to indemnification
shall be deemed to have been made and Indemnitee shall be entitled to such
indemnification, unless the Company establishes by written opinion of
Independent Counsel that (i) a misstatement by Indemnitee of a material
fact, or an omission of a material fact necessary to make Indemnitee’s
statement not materially misleading, in connection with the request for
indemnification, or (ii) a prohibition of such indemnification under
applicable law; provided, however, that such 60-day period may be
extended for a reasonable time, not to exceed an additional thirty (30) days,
if the person, persons or entity making such determination with respect to
entitlement to indemnification in good faith requires such additional time to
obtain or evaluate documentation and/or information relating thereto; and provided,
further, that the foregoing provisions of this Section 6(g) shall
not apply if the determination of entitlement to indemnification is to be made
by the stockholders pursuant to Section 6(b) of this Agreement
and if (A) within fifteen (15) days after receipt by the Company of the
request for such determination, the Disinterested Directors resolve as required
by Section 6(b)(iii) of this Agreement to submit such determination
to the stockholders for their consideration at an annual meeting thereof to be
held within seventy-five (75) days after such receipt and such determination is
made thereat, or (B) a special meeting of stockholders is called within fifteen
(15) days after such receipt for the purpose of making such determination, such
meeting is held for such purpose within sixty (60) days after having been so
called and such determination is made thereat.

 

(h)                                 Indemnitee
shall cooperate with the person, persons or entity making such determination
with respect to Indemnitee’s entitlement to indemnification, including
providing to such person, persons or entity upon reasonable advance request any
documentation or information which is not privileged or otherwise protected
from disclosure and which is reasonably available to Indemnitee and reasonably
necessary to such determination.  Any
Independent Counsel or member of the Board or stockholder of the Company shall
act reasonably and in good faith in making a determination regarding Indemnitee’s
entitlement to indemnification under this Agreement.  Any costs or expenses (including attorneys’
fees and disbursements) incurred by Indemnitee in so cooperating with the
person, persons or entity making such determination shall be borne by the
Company (irrespective of the determination as to Indemnitee’s entitlement to
indemnification) and the Company hereby indemnifies and agrees to hold
Indemnitee harmless therefrom.

 

(i)                                     The
Company acknowledges that a settlement or other disposition, including a
conviction or a plea of nolo contendere, short of final judgment may be
successful if it permits a party to avoid expense, delay, distraction,
disruption and uncertainty.  In the event
that any action, claim or proceeding to which Indemnitee is a party is resolved
in any manner other than by adverse judgment against Indemnitee (including,
without limitation, settlement of such action, claim or proceeding with or
without payment of money or other consideration) it shall be presumed that
Indemnitee has been successful on the merits or otherwise in such action, suit
or proceeding, and it shall not create a presumption that the Indemnitee did
not act in good faith and in a manner reasonably believed to be in or not
opposed to the best interest of the Company or that, with respect to any
criminal Proceeding, the Indemnitee had reasonable cause to believe that his
conduct unlawful.  Anyone seeking to
overcome this presumption shall have the burden of proof and the burden of
persuasion by clear and convincing evidence.

 

(j)                                     The
termination of any Proceeding or of any claim, issue or matter therein, by
judgment, order, settlement or conviction, or upon a plea of nolo contendere or
its equivalent, shall not of itself adversely affect the right of Indemnitee to
indemnification or create a presumption that Indemnitee

 

6

 

did not act in
good faith and in a manner which he reasonably believed to be in or not opposed
to the best interests of the Company or, with respect to any criminal
Proceeding, that Indemnitee had reasonable cause to believe that his conduct
was unlawful.

 

7.                                       Remedies
of Indemnitee.

 

(a)                                  In
the event that (i) a determination is made pursuant to Section 6
of this Agreement that Indemnitee is not entitled to indemnification under this
Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 5
of this Agreement, (iii) no determination of entitlement to
indemnification is made pursuant to Section 6(b) or Section 6(c) of
this Agreement within sixty (60) days after receipt by the Company of the
request for indemnification, (iv) payment of indemnification is not made
pursuant to this Agreement within ten (10) days after receipt by the
Company of a written request therefor or (v) payment of indemnification is
not made within [ten (10)] days after a
determination has been made that Indemnitee is entitled to indemnification or
such determination is deemed to have been made pursuant to Section 6
of this Agreement, Indemnitee shall be entitled to an adjudication of Indemnitee’s
entitlement to such indemnification or advancement of expenses either, at the
Indemnitee’s sole option, in (1) an appropriate court of the State of Nevada,
or any other court of competent jurisdiction, or (2) an arbitration to be
conducted by a single arbitrator, selected by mutual agreement of the Company
and Indemnitee, pursuant to the rules of the American Arbitration
Association. The Company shall not oppose Indemnitee’s right to seek any such
adjudication.

 

(b)                                 In
the event that a determination shall have been made pursuant to Section 6(b) or
Section 6(c) of this Agreement that Indemnitee is not entitled
to indemnification, (i) any judicial proceeding or arbitration commenced
pursuant to this Section 7 shall be conducted in all respects de
novo on the merits, and Indemnitee shall not be prejudiced by reason of the
adverse determination under Section 6(b) or Section 6(c);
and (ii) in any such judicial proceeding or arbitration, the Company shall
have the burden of proving that Indemnitee is not entitled to indemnification
under this Agreement.

 

(c)                                  If
a determination shall have been made pursuant to Section 6(b) or
Section 6(c), or shall have been deemed to have been made pursuant
to Section 6(g), of this Agreement that Indemnitee is entitled to
indemnification, the Company shall be obligated to pay the amounts constituting
such indemnification within five (5) days after such determination has
been made or has been deemed to have been made and shall be conclusively bound
by such determination in any judicial proceeding commenced pursuant to this Section 7,
unless the Company establishes by written opinion of Independent Counsel that (i) a
misstatement by Indemnitee of a material fact, or an omission of a material
fact necessary to make Indemnitee’s misstatement not materially misleading in
connection with the request for indemnification, or (ii) a prohibition of
such indemnification under applicable law.

 

(d)                                 In
the event that Indemnitee, pursuant to this Section 7, seeks a
judicial adjudication of, or an award in arbitration to enforce, his rights
under, or to recover damages for breach of, this Agreement, or to recover under
any directors’ and officers’ liability insurance policies maintained by the
Company, the Company shall pay to him or on his behalf, in advance, and shall
indemnify him against, any and all expenses (of the types described in the
definition of Expenses in Section 13 of this Agreement) actually
and reasonably incurred by him in such judicial adjudication or arbitration,
regardless of whether Indemnitee ultimately is determined to be entitled to
such indemnification, advancement of expenses or insurance recovery.

 

(e)                                  The
Company shall be precluded from asserting in any judicial proceeding or
arbitration commenced pursuant to this Section 7 that the
procedures and presumptions of this Agreement are not valid, binding and
enforceable and shall stipulate in any such court or before any such arbitrator
that the Company is bound by all the provisions of this Agreement.  The Company shall indemnify Indemnitee
against any and all Expenses and, if requested by Indemnitee, shall (within ten
(10) days after receipt by the Company of a written request therefore)
advance, to the extent not prohibited by law, such expenses to Indemnitee,
which are incurred by Indemnitee in connection with any action brought by
Indemnitee for indemnification or advance of Expenses from the Company under
this Agreement or under any directors’ and officers’ liability insurance policies
maintained by the Company,

 

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regardless of
whether Indemnitee ultimately is determined to be entitled to such
indemnification, advancement of Expenses or insurance recovery, as the case may
be.

 

8.                                       Non-Exclusivity;
Survival of Rights; Insurance; Subrogation.

 

(a)                                  The
rights of indemnification and advancement of expenses as provided by this
Agreement shall not be deemed exclusive of, and shall be in addition to, any
other rights to which Indemnitee may at any time be entitled under applicable law,
the Articles of Incorporation or By-laws of the Company, any agreement, a vote
of stockholders, a resolution of directors or otherwise, and nothing in this
Agreement shall diminish or otherwise restrict Indemnitee’s rights to
indemnification or advancement of expenses under the foregoing.  No amendment, alteration or repeal of this
Agreement or of any provision hereof shall limit or restrict any right of
Indemnitee under this Agreement in respect of any action taken or omitted by
such Indemnitee in his Corporate Status prior to such amendment, alteration or
repeal.  To the extent that a change in
the NRS, whether by statute or judicial decision, permits greater
indemnification than would be afforded currently under the Company’s Articles
of Incorporation, By-laws and this Agreement, it is the intent of the parties
hereto that Indemnitee shall enjoy by this Agreement the greater benefits so
afforded by such change and Indemnitee shall be deemed to have such greater
benefits hereunder.  No right or remedy herein
conferred is intended to be exclusive of any other right or remedy, and every
other right and remedy shall be cumulative and in addition to every other right
and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise.  The assertion or employment
of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other right or remedy.  The Company shall not adopt any amendments to
its Articles of Incorporation or By-laws, the effect of which would be to deny,
diminish or encumber Indemnitee’s right to indemnification or advancement of
expenses under this Agreement, any other agreement or otherwise.

 

(b)                                 To
the extent that the Company maintains an insurance policy or policies providing
liability insurance for directors, officers, employees, or agents or
fiduciaries of the Company or of any other corporation, partnership, joint
venture, trust, employee benefit plan or other enterprise that such person
serves at the request of the Company, Indemnitee shall be covered by such
policy or policies in accordance with its or their terms to the maximum extent
of the coverage available for any director, officer, employee, agent or
fiduciary under such policy or policies. 
If, at the time of the receipt of a notice of a claim pursuant to the
terms hereof, the Company has director and officer liability insurance in
effect, the Company shall give prompt notice of the commencement of such
proceeding to the insurers in accordance with the procedures set forth in the
respective policies.  The Company shall
thereafter take all necessary or desirable action to cause such insurers to
pay, on behalf of Indemnitee, all amounts payable as a result of such proceeding
in accordance with the terms of such policies.

 

(c)                                  In
the event of any payment under this Agreement, the Company shall be subrogated
to the extent of such payment to all of the rights of recovery of Indemnitee,
who shall execute all papers required and take all action necessary to secure
such rights, including execution of such documents as are necessary to enable
the Company to bring suit to enforce such rights (with all of Indemnitee’s
reasonable expenses, including, without limitation, attorneys’ fees and
charges, related thereto to be reimbursed by or, at the option of Indemnitee,
advanced by the Company).

 

(d)                                 The
Company shall not be liable under this Agreement to make any payment of amounts
otherwise indemnifiable hereunder if and to the extent that Indemnitee has
otherwise actually received such payment under any insurance policy, contract,
agreement or otherwise.

 

(e)                                  The
Company’s obligation to indemnify or advance Expenses hereunder to Indemnitee
who is or was serving at the request of the Company as a director, officer,
employee or agent of any other corporation, partnership, joint venture, trust,
employee benefit plan or other enterprise shall be reduced by any amount
Indemnitee has actually received as indemnification or advancement of expenses
from such other corporation, partnership, joint venture, trust, employee
benefit plan or other enterprise.

 

8

 

9.             Exception
to Right of Indemnification. Notwithstanding any provision in this
Agreement, the Company shall not be obligated under this Agreement to make any
indemnity in connection with any claim made against Indemnitee:

 

(a)           for
which payment has actually been made to or on behalf of Indemnitee under any
insurance policy or other indemnity provision, except with respect to any
excess beyond the amount paid under any insurance policy or other indemnity
provision; or

 

(b)           for
an accounting of profits made from the purchase and sale (or sale and purchase)
by Indemnitee of securities of the Company within the meaning of Section 16(b) of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or
similar provisions of state statutory law or common law; or

 

(c)           in
connection with any Proceeding (or any part of any Proceeding) initiated by
Indemnitee, including any Proceeding (or any part of any Proceeding) initiated
by Indemnitee against the Company or its directors, officers, employees or
other indemnitees, unless (i) the Board of the Company authorized the
Proceeding (or any part of any Proceeding) prior to its initiation or (ii) the
Company provides the indemnification, in its sole discretion, pursuant to the
powers vested in the Company under applicable law.

 

10.           Retroactive Effect; Duration of
Agreement; Successors and Binding Agreement.  All agreements and obligations of the Company
contained herein shall be deemed to have become effective upon the date
Indemnitee first became an officer or director of the Company; shall continue
during the period Indemnitee is an officer or a director of the Company (or is
or was serving at the request of the Company as a director, officer, employee
or agent of another corporation, partnership, joint venture, trust or other
enterprise); and shall continue thereafter so long as Indemnitee may be subject
to any Proceeding (or any proceeding commenced under Section 7
hereof) by reason of his Corporate Status, whether or not he is acting or
serving in any such capacity at the time any liability or expense is incurred
for which indemnification can be provided under this Agreement.  This Agreement shall be binding upon and
inure to the benefit of and be enforceable by the parties hereto and their
respective successors (including any direct or indirect successor by purchase,
merger, consolidation, reorganization or otherwise to all or substantially all
of the business or assets of the Company), assigns, spouses, heirs, executors
and personal and legal representatives. 
The Company shall require any such successor to all or substantially all
of the business or assets of the Company, by agreement in form and substance
satisfactory to Indemnitee and his counsel, expressly to assume and agree to
perform this Agreement in the same manner and to the same extent the Company
would be required to perform if no such succession had taken place.  Except as otherwise set forth in this Section 10,
this Agreement shall not be assignable or delegable by the Company.

 

11.           Security.  To the extent requested by Indemnitee and
approved by the Board of the Company, the Company may at any time and from time
to time provide security to Indemnitee for the Company’s obligations hereunder
through an irrevocable bank line of credit, funded trust or other
collateral.  Any such security, once
provided to Indemnitee, may not be revoked or released without the prior
written consent of the Indemnitee.

 

12.           Enforcement.

 

(a)           The
Company expressly confirms and agrees that it has entered into this Agreement and
assumes the obligations imposed on it hereby in order to induce Indemnitee to
serve, or continue to serve, as an officer or a director of the Company, and
the Company acknowledges that Indemnitee is relying upon this Agreement in
serving as an officer or a director of the Company.

 

(b)           This
Agreement constitutes the entire agreement between the parties hereto with
respect to the subject matter hereof and supersedes all prior agreements and
understandings, oral, written and implied, between the parties hereto with
respect to the subject matter hereof.

 

9

 

13.           Definitions.  For purposes of this Agreement:

 

(a)             “Change
in Control” means the occurrence of any one of the following events:

 

(i)            any “person”
(as such term is defined in Section 3(a)(9) of the Exchange Act and
as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is or
becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, of securities of the Company representing [35]% or more of the combined voting power of the Company’s
then outstanding securities eligible to vote for the election of the Board (the
“Company Voting Securities”); provided, however, that the
event described in this paragraph (i) shall not be deemed to be a Change
in Control by virtue of any of the following acquisitions:  (A) by
the Company or any subsidiary; (B) by any employee benefit plan (or
related trust) sponsored or maintained by the Company or any subsidiary; (C) by
any underwriter temporarily holding securities pursuant to an offering of such
securities; (D) pursuant to a Non-Control Transaction (as defined in
paragraph (iii) below); or (E) a transaction (other than one
described in paragraph (iii) below) in which Company Voting Securities are
acquired from the Company, if a majority of the Incumbent Board (as defined in
paragraph (ii) below) approves a resolution providing expressly that the
acquisition pursuant to this clause (E) does not constitute a Change in
Control under this paragraph (i);

 

(ii)           individuals
who, on [DATE], constitute the
Board (the “Incumbent Board”) cease for any reason to constitute at
least a majority thereof, provided that any person becoming a director
subsequent to [DATE], whose
election or nomination for election was approved by a vote of at least
two-thirds of the directors comprising the Incumbent Board (either by a
specific vote or by approval of the proxy statement of the Company in which
such person is named as a nominee for director, without objection to such
nomination) shall be considered a member of the Incumbent Board; provided,
however, that no individual initially elected or nominated as a director
of the Company as a result of an actual or threatened election contest with
respect to directors or any other actual or threatened solicitation of proxies
or consents by or on behalf of any person other than the Board shall be deemed
to be a member of the Incumbent Board;

 

(iii)          the
consummation of a merger, consolidation, share exchange or similar form of
corporate transaction involving the Company or any of its subsidiaries that
requires the approval of the Company’s stockholders (whether for such
transaction or the issuance of securities in the transaction or otherwise) (a “Reorganization”),
unless immediately following such Reorganization:  (A) more than [60]% of the total voting power of (x) the corporation
resulting from such Reorganization (the “Surviving Company”), or (y) if
applicable, the ultimate parent corporation that directly or indirectly has
beneficial ownership of 95% of the voting securities eligible to elect
directors of the Surviving Company (the “Parent Company”), is
represented by Company Voting Securities that were outstanding immediately
prior to such Reorganization (or, if applicable, is represented by shares into
which such Company Voting Securities were converted pursuant to such
Reorganization), and such voting power among the holders thereof is in
substantially the same proportion as the voting power of such Company Voting
Securities among holders thereof immediately prior to the Reorganization; (B) no
person (other than any employee benefit plan (or related trust) sponsored or
maintained by the Surviving Company or the Parent Company) is or becomes the
beneficial owner, directly or indirectly, of 20% or more of the total voting
power of the outstanding voting securities eligible to elect directors of the
Parent Company (or, if there is no Parent Company, the Surviving Company); and (C) at
least a majority of the members of the board of directors of the Parent Company
(or, if there is no Parent Company, the Surviving Company) following the
consummation of the Reorganization were members of the Incumbent Board at the
time of the Board’s approval of the execution of the initial agreement
providing for such Reorganization (any Reorganization which satisfies all of
the criteria specified in (A), (B) and (C) above shall be deemed to
be a “Non-Control Transaction”);

 

(iv)          the
stockholders of the Company approve a plan of complete liquidation or
dissolution; or

 

10

 

(v)           the
consummation of a sale (or series of sales) of all or substantially all of the
assets of the Company and its subsidiaries to an entity that is not an affiliate
of the Company.

 

Notwithstanding
the foregoing, a Change in Control shall not be deemed to occur solely because
any person acquires beneficial ownership of [35]%
or more of the Company Voting Securities as a result of the acquisition of
Company Voting Securities by the Company which reduces the number of Company
Voting Securities outstanding; provided, that, if after such acquisition by the
Company such person becomes the beneficial owner of additional Company Voting
Securities that increases the percentage of outstanding Company Voting
Securities beneficially owned by such person, a Change in Control shall then
occur.

 

(b)           “Corporate Status” describes the
status of a person who is or was a director, officer, employee, agent or
fiduciary of the Company or of any other corporation, partnership, joint
venture, trust, employee benefit plan or other enterprise that such person is
or was serving at the request of the Company.

 

(c)           “Disinterested Director” means a
director of the Company who is not and was not a party to the Proceeding in
respect of which indemnification is sought by Indemnitee.

 

(d)           “Enterprise” shall mean the Company
and any other corporation, partnership, joint venture, trust, employee benefit
plan or other enterprise that Indemnitee is or was serving at the express
written request of the Company as a director, officer, employee, agent or
fiduciary.

 

(e)           “Expenses” shall include all
reasonable attorneys’ fees, retainers, court costs, transcript costs, fees of
experts, witness fees, travel expenses, duplicating costs, printing and binding
costs, telephone charges, postage, delivery service fees and all other
disbursements or expenses of the types customarily incurred or actually
incurred in connection with prosecuting, defending, preparing to prosecute or
defend, investigating, participating, or being or preparing to be a witness in
a Proceeding, or responding to, or objecting to, a request to provide discovery
in a Proceeding.  Expenses also shall
include Expenses incurred in connection with any appeal resulting from any
Proceeding, and any federal, state, local or foreign taxes imposed on the
Indemnitee as a result of the actual or deemed receipt of any payments under
this Agreement, including, without limitation, the premium, security for, and other
costs relating to any cost bond, supersede as bond, or other appeal bond or its
equivalent.  Expenses, however, shall not
include amounts paid in settlement by Indemnitee or the amount of judgments or
fines against Indemnitee.

 

(f)            “Independent Counsel” means a law
firm, or a member of a law firm, that is experienced in matters of corporation
law and neither presently is, nor in the past five (5) years has been,
retained to represent:  (i) the
Company or Indemnitee in any matter material to either such party (other than
with respect to matters concerning Indemnitee under this Agreement, or of other
indemnitees under similar indemnification agreements), or (ii) any other
party to the Proceeding giving rise to a claim for indemnification
hereunder.  Notwithstanding the
foregoing, the term “Independent Counsel” shall not include any person who,
under the applicable standards of professional conduct then prevailing, would
have a conflict of interest in representing either the Company or Indemnitee in
an action to determine Indemnitee’s rights under this Agreement.  The Company agrees to pay the reasonable fees
of the Independent Counsel referred to above and to fully indemnify such
counsel against any and all Expenses, claims, liabilities and damages arising
out of or relating to this Agreement or its engagement pursuant hereto.

 

(g)           “Proceeding” includes any
threatened, pending or completed action, suit, arbitration, alternate dispute
resolution mechanism, investigation, inquiry, administrative hearing or any
other actual, threatened or completed proceeding, whether brought by or in the
right of the Company or otherwise and whether civil, criminal, administrative
or investigative, in which Indemnitee was, is or will be involved as a party or
otherwise, by reason of the fact that Indemnitee is or was an officer or a
director of the Company, by reason of any action taken by him or of any
inaction on his part while acting as an officer or a director of the Company,
or by reason of the fact that he is or was serving at the request of the
Company as a director, officer, employee, agent or fiduciary of another
corporation, partnership, joint 

 

11

 

venture, trust or other
Enterprise; in each case whether or not he is acting or serving in any such
capacity at the time any liability or expense is incurred for which
indemnification can be provided under this Agreement; including one pending on
or before the date of this Agreement, but excluding one initiated by an
Indemnitee pursuant to Section 7 of this Agreement to enforce his
rights under this Agreement.

 

14.           Severability.  The invalidity or unenforceability of any
provision hereof shall in no way affect the validity or enforceability of any
other provision.  Without limiting the
generality of the foregoing, this Agreement is intended to confer upon
Indemnitee indemnification rights to the fullest extent permitted by applicable
laws.  In the event any provision hereof
conflicts with any applicable law, such provision shall be deemed modified,
consistent with the aforementioned intent, to the extent necessary to resolve
such conflict.

 

15.           Modification
and Waiver.  No supplement,
modification, termination or amendment of this Agreement shall be binding
unless executed in writing by both of the parties hereto.  No waiver of any of the provisions of this
Agreement shall be deemed or shall constitute a waiver of any other provisions
hereof (whether or not similar) nor shall such waiver constitute a continuing
waiver.

 

16.           Notice
By Indemnitee.  Indemnitee agrees
promptly to notify the Company in writing upon being served with or otherwise
receiving any summons, citation, subpoena, complaint, indictment, information
or other document relating to any Proceeding or matter which may be subject to
indemnification covered hereunder.  The
failure to so notify the Company shall not relieve the Company of any
obligation which it may have to Indemnitee under this Agreement unless, and
only to the extent that, the Company is actually and materially prejudiced as a
direct result of such delay or failure.

 

17.           Notices.  All notices and other communications given or
made pursuant to this Agreement shall be in writing and shall be deemed
effectively given:  (a) upon
personal delivery to the party to be notified, (b) when sent by confirmed
electronic mail or facsimile if sent during normal business hours of the
recipient, and if not so confirmed, then on the next business day, (c) five
(5) days after having been sent by registered or certified mail, return
receipt requested, postage prepaid, or (d) one (1) day after deposit
with a nationally recognized overnight courier, specifying next day delivery,
with written verification of receipt. 
All communications shall be sent:

 

(a)           To
Indemnitee at the address set forth below Indemnitee’s signature hereto.

 

(b)           To
the Company at:

 

Force
Protection, Inc.

9801 Highway 78, Building No. 1

Ladson, South Carolina, 29456

Attention: 
Corporate Secretary

 

or to such other address as may have been furnished to
Indemnitee by the Company or to the Company by Indemnitee, as the case may be.

 

18.           Counterparts.  This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same Agreement.  Executed counterparts may be delivered by
facsimile and shall be deemed an original, but all of such counterparts  together shall constitute one and the same
instrument.

 

19.           Headings.  The headings of the paragraphs of this
Agreement are inserted for convenience only and shall not be deemed to
constitute part of this Agreement or to affect the construction thereof.

 

20.           Successors
and Assigns.  The terms of this
Agreement shall be binding upon the Company and its successors and assigns and
shall inure to the benefit of Indemnitee and Indemnitee’s spouse, assigns,
heirs, devisees, executors, administrators and other legal representatives.

 

12

 

21.           Governing
Law and Consent to Jurisdiction. 
This Agreement and the legal relations among the parties shall be
governed by, and construed and enforced in accordance with, the laws of the
State of Nevada, without regard to its conflict of laws rules. The Company and
Indemnitee hereby irrevocably and unconditionally (i) agree that any
action or proceeding arising out of or in connection with this Agreement (other
than an arbitration pursuant to Section 7 hereof) shall be brought
only in the appropriate court of the State of Nevada (the “Nevada Court”), and not in any
other state or federal court in the United States of America or any court in
any other country, (ii) consent to submit to the exclusive jurisdiction of
the Nevada Court for purposes of such action or proceeding, (iii) waive
any objection to the laying of venue of any such action or proceeding in the
Nevada Court, and (iv) waive, and agree not to plead or to make, any claim
that any such action or proceeding brought in the Nevada Court has been brought
in an improper or inconvenient forum.

 

SIGNATURE PAGE TO
FOLLOW

 

13

 

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement on and as of the day and year first above written.

 

 

	
   

  	
  FORCE
  PROTECTION, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

 

	
   

  	
  INDEMNITEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
   

  

 

14EXHIBIT 10.1

 

AMENDED AND RESTATED

EXECUTIVE EMPLOYMENT AGREEMENT

 

THIS
AGREEMENT is made as of the 31st day of December 2008,
among Riverview Financial Corporation (“Corporation”), with principal offices
at 3rd and Market Streets Halifax, PA 17032,  Riverview National Bank (“Bank”) with
principal offices at 101 Lincoln Street, Marysville, Pennsylvania, 17053, and
ROBERT M. GARST, 167 Timber Ridge Road, Hummelstown, Pennsylvania, 17036
(hereinafter referred to as “EXECUTIVE”).

 

WITNESSETH:

 

WHEREAS,
the Executive was President of First Perry Bancorp, Inc. (“First Perry”);

 

WHEREAS,
Executive entered into an Executive Employment Agreement with First Perry’s
subsidiary, The First National Bank of Marysville (“Marysville”) on December 3,
2006, as amended on June 18, 2008;

 

WHEREAS,
Halifax National Bank (“Halifax”) is the wholly owned subsidiary of HNB Bancorp, Inc.
(“HNB”);

 

WHEREAS,
First Perry and HNB entered into an Agreement and Plan of Consolidation dated
on or about June 18, 2008 (“Consolidation Agreement”) pursuant to which
First Perry and HNB shall consolidate into Corporation and Marysville and
Halifax shall consolidate into the Bank (“Consolidation”);

 

WHEREAS,
Executive shall become the Chief Executive Officer of the Bank;

 

WHEREAS,
the parties desire to amend and restate Executive’s employment agreement as a
result of the Consolidation;

 

WHEREAS,
this Amended and Restated Executive Employment Agreement shall become effective
upon the Effective Date of the Consolidation as defined in the Consolidation Agreement;

 

NOW
THEREFORE, in consideration of the mutual covenants set forth below and
intending to be legally bound, the parties and the Executive agree as follows:

 

I.  TERM OF EMPLOYMENT

 

1.                                       The Bank hereby
employs the Executive as Chief Executive Officer as set forth below, and
Executive hereby accepts this employment and agrees to render such services to
the Bank on the terms and conditions as set forth in this Agreement.  This 

 

1

 

Agreement
shall be for a three (3) year period (the “Employment Period”) beginning
on the Effective Date of the Consolidation, and if not previously terminated
pursuant to the terms of this Agreement, shall end three years later (the “Initial
Term”).  The employment Period shall be
extended automatically for one (1) additional year on the anniversary date
of this Agreement (“Renewal Date”) and then on each anniversary of the Renewal
Date of this Agreement thereafter, unless Bank or Executive gives contrary
written notice to the other ninety (90) days prior to the anniversary date so
that upon such anniversary of the Renewal Date if notice had not been
previously given as provided in this Section I.1, the Employment Period
shall continue for a three (3) year period thereafter.  References in the Agreement to “Employment
Period” shall refer to the Initial Term of this Agreement and any extensions to
the Initial Term.  It is the intention of
the parties that this Agreement be “Evergreen” unless (i) either party
gives written notice to the other party of his or its intention not to renew
this Agreement as provided above or (ii) this Agreement is terminated
pursuant to Section VI of this Agreement.

 

2.                                       During the term
of this Agreement the Executive shall perform such executive services for the
Bank as are consistent with his title and as are assigned to him by the Bank’s
Board of Directors.

 

3.                                       During the term
of this Agreement, the Executive shall devote his best efforts, including such
portion of his time and effort to the affairs and business of the Bank as he
has customarily provided to this date.

 

4.                                       The services of
Executive shall be rendered principally in Pennsylvania, but he shall do such
traveling on behalf of the Bank as may be reasonably required.

 

II.  COMPETITIVE ACTIVITIES

 

Executive
agrees that during the term of his employment except with the express consent
of the Board of Directors, he will not, directly or indirectly, engage or
participate in, become a director of, or render advisory or other services for,
or make any financial investment in any firm, corporation, business entity or
business enterprise competitive with the Bank; provided, however, that
Executive shall not thereby be precluded or prohibited from owning passive
investments, including investments in the securities of other financial
institutions, so long as such ownership does not require him to devote
substantial time to management or control of the business or activities in
which he has invested.

 

III.  COMPENSATION

 

The
Bank will compensate Executive for Executive’s services during the term of the
Agreement at a minimum Annual Base Salary of $132,500 per year, payable at the
same times as salaries are payable to other executive employees. Bank may from
time to time increase Executive’s Annual Base Salary, and any and all such
increases shall be deemed to constitute amendments to this Section to
reflect the increased amounts.

 

2

 

IV.  PARTICIPATION IN RETIREMENT
AND MEDICAL PLANS,

LIFE INSURANCE AND DISABILITY

 

1.                                       Executive shall
be entitled to participate in any employee benefit plan of the Bank relating to
pension, profit-sharing or other retirement benefits and health or medical
coverage or reimbursement plans that the Bank may adopt for the benefit of its employees.

 

2.                                       In the event
the Executive suffers from a Disability as defined in Section IV.3, he
shall nevertheless continue to receive an amount equal to and no greater than
100% of his annual base salary, less amounts payable under any disability plan of
the Bank, for the first three months of his disability.  Thereafter, he shall only be entitled to any
amount provided for in the Bank’s long-term disability policy in effect at the
time of the payments determined therein.

 

3.                                       For purposes of
this Agreement, “Disability” means the Executive is unable to engage in any
substantial gainful activity by reason of 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 twelve (12) months.  The Executive will be deemed disabled if the
Social Security Administration has determined that he is disabled or if a
carrier of any group disability insurance policy provided by the Bank or made
available by the Bank to its employees and covering the Executive determines
that he is disabled provided that the policy’s definition of disability
complies with the definition of disability under IRC Section 409A.

 

V.  ADDITIONAL COMPENSATION AND
BENEFITS

 

1.                                       During the term
of the Agreement, Executive will be entitled to participate in and receive the
benefits of any stock option, profit sharing, or other plan, benefit or
privilege given to employees and executives of the Bank or its subsidiaries and
affiliates which may come into existence hereafter, to the extent commensurate
with his duties and responsibilities, as fixed by the Bank’s Board of Directors
or any committee of such Board or of the Bank selected for such purpose.  To the extent Executive is otherwise eligible
and qualifies, he shall participate in and receive such benefits or
privileges.  The Bank shall not make any
changes in such plans, benefits or privileges which would adversely affect
Executive’s rights or benefits, unless such change occurs pursuant to a program
applicable to all executive officers of the Bank and does not result in a
proportionately greater adverse change in the rights or benefits to Executive
as compared with any other executive officer of the Bank.  Nothing paid to Executive under any plan or
arrangement presently in effect or made available in the future shall be deemed
to be in lieu of the salary payable to Executive pursuant to Section III.

 

2.                                       For services
performed by Executive under this Agreement, Bank has established a bonus
program for Executive which is attached hereto as Exhibit A.  The payment of any such bonuses shall not
reduce or otherwise affect any other obligation of Bank to Executive provided
for in this Agreement.

 

3

 

VI.  TERMINATION

 

1.                                       In the event
Executive’s employment is terminated, Executive’s right to compensation and
other benefits under this agreement shall be as set forth hereinafter in this Section VI.  In the event the Executive is terminated in a
manner which violates the provisions of this Agreement, as determined by a
court of competent jurisdiction, Bank shall reimburse Executive for all
reasonable costs, including attorney’s fees in challenging such
termination.  Such reimbursement shall be
in addition to all rights to which the Executive is otherwise entitled under
this Agreement.

 

2.                                       (a)  If a
change in control (hereinafter referred to as “CIC”) of the Bank shall occur,
as defined in 2(b), and without Executive’s express written consent,
thereafter, there shall be:

 

(i) 
an involuntary termination of Executive without Cause as defined in Section VI
8;

 

(ii) 
an assignment to Executive of duties inconsistent with Executive’s positions,
duties, responsibilities and status with the Bank immediately prior to a CIC;

 

(iii) 
a change in Executive’s reporting responsibilities, titles or offices in effect
immediately prior to a CIC of the Bank, including any removal of the Executive
from, or any failure to reelect Executive to any of such positions, except in
connection with a termination for disability or retirement;

 

(iv) 
a reduction by the Bank in Executive’s annual salary in effect immediately
prior to a CIC or as the same may be increased from time to time; or

 

(v) 
the failure of the Bank to continue in effect any bonus, benefit or
compensation plan, life insurance plan, health and accident plan or disability
plan in which the Executive is participating at the time of a CIC of the Bank,
or the taking of any action by Bank which would adversely affect Executive’s
participation in or materially reduce Executive’s benefits under any of such
plans;

then
at the option of the Executive, Executive shall within ninety (90) days of the
occurrence of any of the foregoing events, provide notice to Bank of the
existence of the condition and provide Bank thirty (30) days in which to cure
such condition.  In the event that Bank
does not cure the condition within thirty (30) 

 

4

 

days
of such notice, Executive may resign from employment for Good Reason by
delivering written notice (“Notice of Termination”) to Bank.

 

(b)  For purposes of this Agreement, the definition of a “Change
in Control” (CIC) of the Bank shall mean:

 

(1)(a) a merger, consolidation or division involving Bank or its
parent company, (b) a sale, exchange, transfer or other disposition of
substantially all of the assets of Bank, or (c) a purchase by Bank of
substantially all of the assets of purchase or disposition a majority of the
members of the Board of Directors of the legal entity resulting from or
existing after any such transaction and of the Board of Directors of such
entity’s parent corporation, if any, are former members of the Board of
Directors of Bank; or

 

(2)  any “person” (as such term is used in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934 (the “Exchange Act”), other
than Bank or any “person” who on the date hereof is a director or officer of
Bank is or becomes the “beneficial owner” (as defined in Rule 13d-3 under
the Exchange Act), directly or indirectly, of securities of Bank or its parent
company representing thirty five (35%) percent or more of the combined voting
power of Bank’s or its parent company’s then outstanding securities; or

 

(3)  during any period of one (1) year during the term of
Executive’s employment under this Agreement, individuals who at the beginning
of such period constitute the Board of Directors of Bank cease for any reason
to constitute at least a majority thereof, unless the election of each director
who was not a director at the beginning of such period has been approved in
advance by directors representing at least two-thirds of the directors then in
office who were directors at the beginning of the period.

 

Notwithstanding
b(1), (2), or (3) or any other provision above, the consolidation of First
Perry Bancorp, Inc. and HNB Bancorp, Inc, pursuant to the Agreement and
Plan of Consolidation dated on or about June 18, 2008 between First Perry
Bancorp, Inc. and HNB Bancorp, Inc. shall not constitute a Change in
Control under this Section or this Agreement.

 

3.                                       In the event
that Executive delivers a Notice of Termination (as defined in Section VI
2 of this Agreement) to Bank, Executive shall be entitled to receive the
compensation and benefits set forth below:

 

If
a “Change in Control” (as defined in Section 2(b) of this Agreement)
has also occurred, Bank shall pay Executive an amount equal to 3.0  times Executive’s Annual Compensation minus applicable
taxes and withholdings, payable in twenty-four (24) 

 

5

 

equal
monthly installments.  For purposes of
this paragraph, Annual Compensation shall be defined as Executive’s Annual Base
Salary plus the highest bonus received within the previous two years plus the
amount which Bank pays for employee benefits (including automobile allowance)
for Executive for a one year period.  In
addition, for three-years after the date of Executive’s termination, Bank shall
provide Executive with continued participation in all non­cash employee benefit
plans, programs or arrangements (including, without limitation, pension and
retirement plans and arrangements, stock option plans, life insurance and
health and accident plans and arrangements, medical insurance plans, disability
plans, and vacation plans) in which Executive was entitled to participate
immediately prior to the date of termination of his employment provided
Executive is eligible to participate in such plans.  In the event that Executive is not eligible
to participate, then Executive shall receive an amount necessary to reimburse
Executive for the cost incurred by him to obtain substantially similarly
benefits.

 

In
the event the payment described herein, when added to all other amounts or
benefits provided to or on behalf of the Executive in connection with his
termination of employment, would result in the imposition of an excise tax
under Section 4999 of the Code, Bank will pay to Executive an additional
cash payment (“Gross-up Payment”) in an amount such that the after-tax proceeds
of such Gross-up Payment (including any income tax or Excise Tax on such
Gross-up Payment) will be equal to the amount of the Excise Tax.

 

4.                                       If Executive’s
employment with Bank is terminated by Bank for any reason other than Cause as
defined in Section VI 7, then Executive shall be entitled to an amount
equal to 3.0  times Executive’s Annual
Compensation minus applicable taxes and withholdings payable in twenty-four
(24) equal monthly installments. For purposes of this paragraph, Annual
Compensation shall be defined as Executive’s Annual Base Salary plus the
highest bonus received within the previous two years plus the amount which Bank
pays for employee benefits (including automobile allowance) for Executive for a
one year period.  In addition, for three-years
after the date of Executive’s termination, Bank shall provide Executive with
continued participation in all non­cash employee benefit plans, programs or
arrangements (including, without limitation, pension and retirement plans and
arrangements, stock option plans, life insurance and health and accident plans
and arrangements, medical insurance plans, disability plans, and vacation
plans) in which Executive was entitled to participate immediately prior to the
date of termination of his employment provided Executive is eligible to
participate in such plans.  In the event
that Executive is not eligible to participate, then Executive shall receive an
amount necessary to reimburse Executive for the cost incurred by him to obtain
substantially similarly benefits.

 

5.                                       Any termination
of Executive’s employment by the Bank or by the Executive shall be communicated
by written notice of termination to the other party by means of United States
certified mail, return receipt requested, pursuant to Section VII 3 of this
Agreement.  For purposes of this
Agreement, a “notice of termination” shall mean a dated notice which shall (i) indicate
the specific termination provision in the Agreement relied upon; (ii) set
forth in reasonable detail the facts and circumstances claimed to 

 

6

 

provide
a basis for termination of Executive’s employment under the provision so
indicated; and (iii) specify a date of termination, which shall not be
less than thirty nor more than ninety days after such notice of termination.

 

6.                                       Executive shall
not be required to mitigate the amount of any payment provided under this
Agreement by seeking employment or otherwise.

 

7.                                       Termination for
Cause. The Board of Directors of the Bank may terminate Executive’s employment
at any time for cause.  For purposes of
this agreement “Cause” includes,

 

(i)  the Executive’s willful failure to perform
or to comply with any term or provision of this Agreement;

 

(ii) 
the Executive’s willful failure to perform or to comply fully with any lawful
directive of the Bank’s Board of Directors or of any duly constituted committee
thereof after written notice and a failure to cure within thirty (30) days of
such notice;

 

(iii) 
Executive’s violation of Bank’s EBO policy; or

 

(iv) 
Executive’s removal from office or permanently prohibited from participating in
the conduct of the Bank’s affairs by a final order issued by an appropriate
federal banking agency pursuant to Section 8(e) or 8(g) of the
Federal Deposit Insurance Act or by the Comptroller of the Currency pursuant to
national law.

 

8.                                       In the event
that Executive is terminated for “cause” as defined in Section VI 7, all
obligations of Bank under this Agreement shall terminate.

 

9.                                       Notwithstanding
any other provision, in the event that Executive is determined to be a
specified employee (“key employee”) as that term is defined in Section 409A
of the Code, no payment that is determined to be deferred compensation subject
to Section 409A of the Code shall be made until one day following six
months from the date of separation of service as that term is defined in Section 409A
of the Code.

 

VII.  MISCELLANEOUS

 

1.                                       Notwithstanding
any other provision contained in this agreement, the payment or obligation to
pay monies or granting of any rights or privileges to Executive as provided in
this Agreement shall not be in lieu or derogation of the rights and privileges
that Executive now has under any plan or benefit presently outstanding.

 

2.                                       This Agreement
may not be modified, changed, amended, extended, or altered except in writing
signed by the Executive or by his duly authorized representative, and by a duly
authorized officer of the Bank.

 

7

 

3.                                       All notices
given or required to be given shall be in writing, sent by United States
certified mail, return receipt requested, postage prepaid, to Executive (or to
Executive’s spouse or estate upon Executive’s death) at Executive’s last known
address, and to the Bank at its principal office.  All such notices shall be effective when
deposited in the mail in the manner specified in this Section VII 3.  Either party by written notice may change or
designate the place for receipt of all such notices.

 

4.                                       This Agreement
amends and supersedes all previous employment agreements between First Perry or
The First National Bank of Marysville and Executive.

 

VIII.  SUCCESSORS, ETC.

 

1.                                       This Agreement
shall inure to the benefit of and be binding upon Executive, and, to the extent
applicable, his heirs, assigns, executors, and personal representatives and the
Bank, its successors, and assigns, including, without limitation, any person,
partnership, or corporation which may acquire all or substantially all of the
Bank’s assets and business, or with or into which the Bank may be consolidated
or merged.  This provision shall apply in
the event of any subsequent merger, consolidation, or transfer.

 

2.                                       This Agreement
is personal to each of the parties and neither party may assign or delegate any
of its rights or obligations under this Agreement without the prior written
consent of the other party.

 

IX.  APPLICABLE LAW

 

This
Agreement shall be governed in all respects and be interpreted by and under the
laws of the Commonwealth of Pennsylvania, except to the extent that such law
may be preempted by applicable federal law, in which event this Agreement shall
be governed and interpreted by and under federal law.  This Agreement shall also be interpreted as
is minimally required to qualify any payment hereunder as not triggering any
penalty on the Executive or the Bank pursuant to Code Section 409A and the
regulations promulgated thereunder.

 

X.  SEVERABILITY

 

If
any provision in this Agreement is held by a court of competent jurisdiction to
be invalid, void, or unenforceable, the remaining provisions nevertheless shall
continue in full force and effect.

 

XI.  ARBITRATION

 

Each
party agrees that all disputes, disagreements and questions of interpretation
concerning this Agreement (except the question of Executive’s disability which
is governed in Section IV), are to be submitted for resolution, in
Marysville, Pennsylvania, 

 

8

 

to
the American Arbitration Association (the “Association”) in accordance with the
Association’s National Rules for the Resolution of Employment Disputes or
other applicable rules then in effect (“Rules”).  Bank or Executive may initiate an arbitration
proceeding at any time by giving notice to the other in accordance with the
Rules.  Bank and Executive may, as a
matter of right, mutually agree on the appointment of a particular arbitrator
from the Association’s pool.  The
arbitrator shall not be bound by the rules of evidence and procedure of
the courts of the Commonwealth of Pennsylvania but shall be bound by the
substantive law applicable to this Agreement. 
The decision of the arbitrator, absent fraud, duress, incompetence or
gross and obvious error of fact, shall be final and binding upon the parties
and shall be enforceable in courts of proper jurisdiction.  Following written notice of a request for
arbitration, Bank and Executive shall be entitled to an injunction restraining
all further proceedings in any pending or subsequently filed litigation
concerning this Agreement.

 

IN
WITNESS WHEREOF, the parties have duly executed this Agreement as of the day
and year first above written.

 

	
  Attest:

  	
   

  	
  Riverview
  Bancorp, Inc.

  
	
   

  	
   

  	
   

  
	
  /s/
  David A. Troutman

  	
   

  	
  By:

  	
  /s/
  David W. Hoover

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Riverview
  National Bank

  
	
   

  	
   

  	
   

  
	
  /s/
  David A. Troutman

  	
   

  	
  By:

  	
  /s/
  Kirk D. Fox

  
	
   

  	
   

  	
   

  
	
  Witness:

  	
   

  	
  Executive

  
	
   

  	
   

  	
   

  
	
  /s/
  David A. Troutman

  	
   

  	
  By:

  	
  /s/
  Robert Garst

  
	
   

  	
   

  	
   

  	
  Robert
  M Garst

  

 

9

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