Document:

EXHIBIT 10.7

ADAMS COUNTY NATIONAL BANK

SALARY SAVINGS PLAN

12/04

<page>

                                PLAN ARRANGED BY

                                 STEVEN J ALGER
                     2555 KINGSTON RD STE 100 YORK PA 17402
                                 (717) 755-9266

<page>

                                 PLAN HIGHLIGHTS

Plan Highlights briefly describes your plan. The rest of this booklet explains
in greater detail how the plan works.

We started your plan on January 1, 1993.

Your 401(k) savings plan:

       o  Lets you defer a percentage of your pay. You reduce your total taxable
          income by making 401(k) elective deferral contributions under the
          plan. This reduces your current taxes. You will be taxed on this money
          when you receive it later as a benefit.

       o  Matches a percentage of your 401(k) elective deferral contributions.
          That's extra money for you.

       o  Provides that your account resulting from any money you contribute and
          our contributions for you always belongs to you.

       o  Gives you tax deferral on any earnings until you receive them as
          benefits.

       o  Offers several different ways to receive your benefits. You choose the
          right way for you.

If you are already making 401(k) elective deferral contributions, you are on
your way to a more secure future. If you aren't making 401(k) elective deferral
contributions, there's still time to start.

ABOUT THIS BOOKLET

This booklet is the summary plan description. It explains how your plan
currently works, when you qualify for benefits, and other information.

The plan is much more detailed and it governs your benefits.

Ask your plan administrator if you have questions. Part 7 of this booklet lists
your plan administrator's name and address.

                                                                       GA 4-6969
                                                                           (8.0)

<page>

                                TABLE OF CONTENTS

JOINING THE PLAN                                                        PART 1
     o   When You Join
     o   Signing Up
     o   Changes in Your Participation
CONTRIBUTIONS TO THE PLAN                                               PART 2
     o   Your 401(k) Elective Deferral Contributions
     o   Our Matching Contributions
     o   Makeup Contributions
     o   Helpful Terms
     o   Limits
YOUR ACCOUNT: VESTING AND
GENERAL INFORMATION                                                     PART 3
  o      Your Account
  o      Investing Your Account
  o      Vesting in Your Account
  o      You Can Borrow From Your Account

WHEN THE PLAN PAYS BENEFITS                                             PART 4
  o      At Retirement
  o      Required Beginning Date
  o      Withdrawals From Your Account
  o      At Termination
  o      At Death
  o      Tax Considerations

<page>

HOW THE PLAN PAYS BENEFITS                                             PART 5
  o      At Termination or Retirement
  o      Death Benefits Before Benefits Begin
  o      Forms to Choose
  o      A Spouse's Rights

IMPORTANT INFORMATION FOR YOU                                           PART 6
  o      Your Rights
  o      Qualified Domestic Relations Order (QDRO)
  o      The Plan Administrator
  o      Processing Distributions and Other Transactions
  o      Direct Rollovers
  o      Rollovers From Other Plans
  o      Top-heavy Plans
  o      Assigning Your Benefits
  o      Your Social Security Benefits
  o      Claiming Benefits Under the Plan
  o      Changing or Stopping the Plan
  o      Our Plan and the Pension Benefit Guaranty Corporation (PBGC)

FACTS ABOUT THE PLAN                                                    PART 7

<page>

                             PART 1 JOINING THE PLAN

WHEN YOU JOIN
You join the plan as an active participant on the January 1 or July 1 on or
after you meet these requirements:

     o You are an employee.

     o You have 6 months of entry service.

     o You are age 20 1/2 or older.

ENTRY SERVICE means the sum of all of your periods of service. A period of
service starts when you start working for us. It ends on the earlier of the date
you stop working (you quit or are discharged) or the date you are absent from
work one year. Any period of time of less than one year when either you are not
working for us, or you are absent from work because of vacation or some other
reason, will count as a period of service.

Entry service includes service with:

     o   FARMERS NATIONAL BANK OF NEWVILLE

SIGNING UP

To make 401(k) elective deferral contributions, you complete an elective
deferral agreement. Part 2 tells you more about these contributions.

You need to complete a form naming the person who will receive any death benefit
if you die before retirement. If you name someone other than your spouse and you
have been married at least one year, your spouse must agree to your selection.

You must complete a form telling us how you wish to use the investment options
available for your account (see Part 3).

<page>

CHANGES IN YOUR PARTICIPATION

You become an inactive participant on the date you no longer work for us. You
stop being a participant on the date you are not an employee and your account is
zero. You rejoin the plan as an active participant when you work another hour
for us.

                        PART 2 CONTRIBUTIONS TO THE PLAN

Plan contributions create an account for you. That account holds your money.
Contributions share in investment earnings or losses. You don't pay taxes on any
earnings until later-when you receive that money.

YOUR 401(K) ELECTIVE DEFERRAL CONTRIBUTIONS

When you sign up, you tell us how much of your pay you want to defer.

You sign up by completing an elective deferral agreement. You change or stop
your deferrals by signing another agreement. Your agreement must be signed
before it is effective. Your agreement to start or change your deferrals may
only be effective on the first day of the pay period following your entry date
or any following January 1 or July 1. Your agreement to stop your deferrals may
be effective on the first day of a pay period.

Your 40 1(k) elective deferral contributions:

     o   GIVE you an additional return on your dollars through our matching
         contributions.

     o   BUILD income for your retirement years.

     o   REDUCE your income taxes, letting you save for the future with dollars
         you would otherwise pay in current taxes.

     o   MAY PROVIDE investment earnings that aren't taxed until you get your
         benefits.

                                        2
<PAGE>

You may make catch-up contributions in a taxable year if you will be at least
age 50 by the end of that year. Catch-up contributions are 401(k) elective
deferral contributions in excess of any limit on such contributions under the
plan.

For 2005, the maximum catch-up contribution is $4,000. The maximum is increased
by $1,000 each year until 2006 when it will be $5,000. For years after 2006 the
maximum is subject to change each year for cost of living changes.

Social Security tax is based on your income before you defer. That means your
Social Security benefits stay the same no matter how much you defer.

Federal law limits the amount you can defer under all plans. You can find
information about the limits at the end of Part 2.

OUR MATCHING CONTRIBUTIONS

Our matching contributions give you an additional return on the amount you
defer. We will make a matching contribution equal to 100% of your 401(k)
elective deferral contributions. 401(k) elective deferrals over 4% of your pay
are not matched.

Matching contributions are calculated based on your pay and elective deferrals
for the pay period. Matching contributions are made for all persons who were
active participants at any time during that pay period.

MAKEUP CONTRIBUTIONS

You can make up missed 401(k) elective deferral contributions when you return to
work for us after a period of qualified military service as required by law. If
you make up such 401(k) elective deferral contributions, we will make any
matching contributions that apply.

HELPFUL TERMS

PAY means your total pay including your elective contributions to any of our
plans. For purposes of your 401(k) elective deferral contributions and matching
contributions, pay excludes any expense repayments or other allowances, fringe
benefits, moving expenses, deferred compensation and welfare benefits.

                                        3

<page>

Elective contributions are salary reduction amounts contributed by an employer
at an employee's election to a 401(k) plan, simplified employee pension,
cafeteria plan, qualified transportation fringe benefit plan, or tax sheltered
annuity. Elective contributions also include amounts deferred under a 457 plan
or employee contributions "picked up" by a governmental employer and treated as
employer contributions.

LIMITS

401(k) Elective Deferral Limits

The law limits the amount you may defer in any tax year. For 2005, the limit
under all plans of our type is $14,000. This limit is increased by $1,000 each
year until 2006 when it will be $15,000. For years after 2006 the limit is
subject to change each year for cost of living changes. If you are also a
participant in a plan of an unrelated employer, this limit applies to the amount
you defer under both plans. The combined limit for unrelated plans is increased
if you will be at least age 50 by the end of the year. For 2005, the increase
will be $4,000 for a combined limit of $18,000. The increase for people who are
at least age 50 will be increased by $1,000 each year until 2006 when the
combined limit will be $20,000. For years after 2006, the increase is subject to
change each year for cost of living changes. If you are over the limit, you
should request one or both plans to pay any excess to you. Only amounts over the
limit may be paid to you, but you may choose whether it is paid from one or both
plans. If you don't have the excess paid to you, it is taxable to you, but stays
in the plans to be taxed again later when you receive it. Under our plan, you
must tell the plan administrator by March 1 of the following year if you want
any excess paid to you. If excess 401(k) elective deferral contributions are
paid to you, any matching contributions made because of those 401(k) elective
deferral contributions will be forfeited.

If you are a highly paid employee, the law may limit your contributions and our
matching contributions. Because of the limit, we will either restrict the amount
you can contribute in the future, or return your contributions over the limit.
Your returned 401(k) elective deferral contributions will be treated as regular
taxable income. If 401(k) elective deferral contributions are paid to you, any
matching contributions made because of these 401(k) elective deferral
contributions will be forfeited. Other vested contributions over the limit will
be paid to you. The amount paid to you will include any earnings.

                                        4

<page>

Matching contributions which are forfeited because of these limits reduce our
future contributions.

Pay Limits

The law limits the amount of pay that may be used to determine contributions
each year. The 2005 limit is $210,000. This limit is subject to change each year
for cost of living changes.

415 Limits

The law also limits the amount of contributions that can be made for or by you
to the plan in a year to the lesser of 100% of pay or a dollar limit. This limit
applies to all defined contribution plans of ours and any related employers. The
dollar limit for years beginning after December 31, 2004 is $42,000. This limit
is subject to change each year for cost of living changes.

Ask your plan administrator if you want to know more about these limits.

                              PART 3 YOUR ACCOUNT:
                         VESTING AND GENERAL INFORMATION

YOUR ACCOUNT

Your contributions and our contributions for you are credited to your account.

Your account equals the current value of these contributions.

INVESTING YOUR ACCOUNT

Contributions made to your account are invested to provide benefits under the
plan. We decide which investment options are available for your account.

Many investment options have charges and restrictions that apply when you remove
money or transfer funds. The dollar amount that can be removed or transferred
may be restricted along with the dates on which such transactions can be made.
Your plan administrator can tell you more about these charges and restrictions
and when they will apply.

                                        5

<page>

You decide how to use the investment options for your contributions and our
contributions for you.

If you do not make an investment choice, we will decide how to use the
investment options.

The plan administrator will tell you more about the investment options.

VESTING IN YOUR ACCOUNT

The part of your account to which you always have a right is called your vested
account.

Under this plan, you are always 100% vested in your total account.

VESTING SERVICE for early retirement age (see Part 4) means the sum of your
periods of service. A period of service begins when you start working for us. It
ends on the earlier of the date you stop working (you quit or are discharged) or
the date you are absent from work one year. Any period of time of less than one
year when either you are not working for us, or you are absent from work because
of vacation or some other reason, will count as a period of service.

Vesting service includes service with:

     o   FARMERS NATIONAL BANK OF NEWVILLE

YOU CAN BORROW FROM YOUR ACCOUNT

Loans are available under the plan. As rules issued by the Department of Labor
emphasize, however, the plan's primary purpose is to provide retirement income
for you. These rules help make sure your money is available when you retire.

You must be a party-in-interest who is a participant or beneficiary to receive a
loan. The Employee Retirement Income Security Act of 1974 (ERISA) defines a
party-in-interest. Most people cease to be a party-in-interest when they stop
working for us. Loans are made on a reasonably equal basis under the plan's loan
policy. That means the limits and rules in the following paragraphs apply in the
same way to all such participants.
                                        6

<page>

The loan will be limited to the amount you may borrow without the loan being
treated as a taxable distribution to you. Generally, the loan may not be more
than 50% of your vested account or $50,000, (reduced by the highest outstanding
loan balance, if any, during the one-year period ending on the day before your
new loan is made) if less. The minimum loan is $ 1,000. You may be granted one
loan during any one-year period. Only one loan may be outstanding at a time.
Your vested account will provide the security for the loan. You may not use your
account as a security for a loan outside the plan.

Call the TeleTouch(R) toll-free number (see Part 7) to request a loan.

You'll be asked for important credit information and earnings history. This is
the type of information a bank or other lending institution would request. It's
used as a guide to grant loans and helps assure that borrowers can repay the
loan as required. You must give the loan administrator permission to check on
your credit history. Only participants who are creditworthy will be granted
loans.

A charge or restriction might apply for some investment options if you are
granted a loan. Talk with your loan administrator before you request a loan.

Because a loan may reduce benefits payable to the spouse at a later date, if you
are married you may need to have your spouse's consent to make or revise a loan.

The interest rate will be based on the rates available for similar loans from
commercial lending institutions. The loan administrator periodically examines
the rates such lenders are using. Once a loan is granted, the interest rate on
the loan will not change.

When you are granted a loan, you will need to sign a "promissory note." A
promissory note is your written promise to repay the loan. The note will contain
information about your loan such as the amount loaned to you, the interest
charged, and any processing fees or late charges. You must assign the security
for the loan to the plan when the loan is granted.

As you repay the loan, the principal and interest are credited to your account.
A loan to a participant does not affect the account of any other participant.

                                        7

<page>

Payment due dates and the length of the repayment period will be set out in the
promissory note. Payments will be due at least quarterly. The repayment period
won't be longer than five years. Payroll deduction will be used to repay the
loan if available. You may repay the loan before it is due. A processing fee may
be charged as set out in the promissory note for payments which are not made by
payroll deduction.

If any amount remains unpaid for more than 90 days after due the loan shall be
in default. Upon default the entire principal balance and interest shall become
immediately due and payable. The amount of the outstanding loan will be treated
as a distribution and will be taxable to you. To recover the amount due, the
plan may use any part of your vested account available for distribution to you.

Processing fees, late charges or extra costs incurred by the plan if you default
on a loan will be charged to your account.

However, no default will occur if payments are not made while you are actively
serving in the military or for a period up to one year during an approved unpaid
leave of absence, other than military leave. The plan administrator has
established guidelines for making up these past payments after you return to
work following such period of active military service or approved unpaid leave
of absence.

When you cease to be an employee and party-in-interest, the balance of any
outstanding loan is due.

The balance of any outstanding loan is due if the plan terminates.

                       PART 4 WHEN THE PLAN PAYS BENEFITS

Your vested account will be used to provide benefits. If you stop working for us
and your vested account is $5,000 or less, your benefits will be paid to you or
rolled over to an IRA at that time.

AT RETIREMENT

Unless you choose otherwise, benefits will start on your normal retirement date
if you are not working for us and you have a vested account under the plan. You
may choose to have benefits paid on this date even if you are still working for
us.

                                        8

<page>

You may choose to have your benefits paid on your early retirement date.

If you continue working for us after your normal retirement date, your benefits
start on your late retirement date, unless you elect otherwise.

NORMAL RETIREMENT DATE means the first day of the month on or after the date you
reach age 65.

EARLY RETIREMENT DATE means the first day of any month you choose which is on or
after the later of the date you stop working for us or the date you reach early
retirement age.

Your early retirement age is your age on the later of:

     o The date you reach age 55.

     o The date you have 6 years of vesting service (see Part 3).

LATE RETIREMENT DATE MEANS, if you continue working for us after your normal
retirement date, the first day of the month on or after the date you stop
working. You may choose to have your benefits start on the first day of any
month after your normal retirement date and before you stop working. If you do,
that date becomes your late retirement date. It's possible to have your benefits
begin after your late retirement date. If you think you would like to delay your
benefits, talk to the plan administrator before your late retirement date.

REQUIRED BEGINNING DATE

Under the law you must begin receiving benefits by your required beginning date.
Your required beginning date is the April 1 following the later of the calendar
year in which you reach age 70 1/2 or stop working for us. However, if you are a
5% owner, your benefits must begin by the April 1 following the calendar year in
which you reach age 70 1/2.

WITHDRAWALS FROM YOUR ACCOUNT

You may withdraw all or any part of your vested account resulting from rollover
contributions (see Part 6). You may make 2 such withdrawals during any one-year
period.

                                        9

<page>

If you have a financial hardship, you may be able to withdraw all or any part of
your vested account resulting from:

     o   401(k) elective deferral contributions (but none of the income earned
         on such contributions)

FINANCIAL HARDSHIP means your need is immediate and heavy. Federal rules allow
hardship withdrawals for these reasons:

     o   To pay  medical expenses for you, your spouse, or your dependents
         (as defined in Section 152 of the Internal Revenue Code).

     o   To purchase your primary home, stop your eviction from your primary
         home, or stop foreclosure on such home.

     o   To pay tuition, related educational fees, and room and board expenses,
         for the next 12 months of post secondary education for you, your
         spouse, your children, or your dependents.

You may have a withdrawal for financial hardship only if you have received all
other withdrawals or loans available to you under our plan(s). You may not
withdraw more than the amount of your immediate and heavy financial need. The
amount of the withdrawal may include the amount of taxes that will result from
the withdrawal. After the withdrawal, you may not make 401(k) elective deferrals
or other contributions to our plan(s) for 6 months.

Your request for withdrawal must be in writing on a form provided by the plan
administrator. You must complete and return it before the date of withdrawal.

Federal law may require you to have your spouse's consent.

A charge or restriction might apply for some investment options if you make a
withdrawal. Talk with your plan administrator before you complete the form.

AT TERMINATION

If you stop working for us before you are eligible to retire, you may choose to
have all or any part of your vested account paid to you at any time. You may
leave your account under the plan if your vested account is more than $5,000. It
will continue to participate in the plan investments and provide benefits when
you retire or die.
                                       10

<page>

AT DEATH

If you die before benefits start, your vested account will be paid to your
spouse or beneficiary under one or more of the forms available under the plan
(see Part 5).

If you die after you start receiving benefits, death benefits will be paid
according to the form you chose. Not all forms have death benefits.

TAX CONSIDERATIONS

Benefits you receive are normally subject to income taxes. You may be able to
postpone or reduce the taxes that would otherwise be due. In addition, benefits
you receive before age 59 1/2 may be subject to a 10% penalty tax.

Each person's tax situation differs. Your financial advisor can help you decide
the best way for you to receive benefits.

                        PART 5 HOW THE PLAN PAYS BENEFITS

You make an important choice when you decide how to receive your benefit. Things
to consider include the money you will need every month, any death benefits you
want to provide, and your tax situation.

If your vested account is more than $5,000, you may choose to have your vested
account paid under any of the optional forms available under the plan. Your plan
administrator or tax advisor can help you make your choice. You may also call
Principal Financial Group(R) at this toll-free number for answers to your
benefit questions: 1-800-547-7754.

The amount of the payments will depend on the amount of your vested account and
the optional form chosen. If the optional form pays you a monthly income for
life, the amount of the payments will depend on your age. If the option also
provides a monthly income for the life of someone who survives you, the amount
of the payments will also depend on the age of your survivor.

AT TERMINATION OR RETIREMENT

If your vested account is less than $1,000, it will be paid to you in a single
sum. If
                                       11

<page>

your vested account is at least $1,000, but is $5,000 or less, your vested
account will be rolled to an IRA with an affiliate of Principal Life Insurance
Company, unless you choose to have it paid to you in a single sum or rolled to
another retirement plan or IRA in a direct rollover (see Part 6).

If your vested account is more than $5,000, you may choose from the forms of
benefit described in Forms to Choose below. You may need your spouse's consent
to choose a form of benefit. See A Spouse's Rights below. You may change or
cancel your choice at any time before benefits start.

If you don't choose a form or your spouse revokes consent (if consent is
needed), your benefits are paid as follows:

     o   If you are married, benefits are paid to you monthly for life. After
         your death 50% of your monthly income is paid to your spouse for as
         long as your spouse lives. If both you and your spouse die before the
         total amount paid equals the amount used to purchase the annuity,
         payments continue to your beneficiary until the total amount paid
         equals the purchase price.

     o   If you are single, benefits are paid to you monthly for life. If you
         die before the total amount paid equals the amount used to purchase the
         annuity, payments continue to your beneficiary until the total amount
         paid equals the purchase price.

DEATH BENEFITS BEFORE BENEFITS BEGIN

You may name a beneficiary at any time. You may need your spouse's consent to
choose someone other than your spouse as your beneficiary. See A Spouse's Rights
below. You may change your beneficiary at any time.

If your vested account is $5,000 or less, your vested account will be paid to
your beneficiary in a single sum. However, if your vested account is at least
$1,000, any payment to your spouse will be rolled to an IRA with an affiliate of
Principal Life Insurance Company instead, unless your spouse chooses to have it
paid in a single sum or rolled to another retirement plan or IRA in a direct
rollover (see Part 6).

If your vested account is more than $5,000 and your beneficiary is your spouse,
your spouse can choose an optional form of death benefit. Otherwise, you may
choose an optional form of death benefit for a beneficiary. If you don't choose,
that beneficiary may choose an optional form. Generally, a beneficiary can elect

                                       12

<page>

a single sum or any of the annuity options that are available to you at
retirement other than a monthly income that continues for the life of a survivor
upon death. Any choice of the form of payment by your spouse or beneficiary must
be made before benefits begin.

If an optional form of death benefit is not chosen, death benefits are paid as
follows:

     o   If you are married and your spouse is your beneficiary and you have
         been married for the full year before your death, death benefits are
         paid to your spouse monthly for as long as your spouse lives. If your
         spouse dies before the total amount paid equals the amount used to
         purchase the annuity, payments continue to your spouse's beneficiary
         until the total amount paid equals the purchase price.

         Your spouse may choose when benefits start. Benefits must start by the
         later of the end of the next calendar year or the end of the calendar
         year following the calendar year you would have reached age 70 1/2.

     o   If you are married and your spouse is not your beneficiary or you have
         not been married for the full year before your death, death benefits
         are paid to your beneficiary in a single sum.

     o   If you are single, death benefits are paid to your beneficiary in a
         single sum.

Because of Federal rules regarding when death benefits must begin and how death
benefits can be paid, your beneficiary should contact the plan administrator to
determine what options are available and when elections must be made.

FORMS TO CHOOSE

The plan offers the following optional forms of benefit:

Annuity Options

     o    A monthly income to you for life. No benefits are payable after your
         death.

     o   A monthly income to you for life. If you die before the end of a
         certain number of years (you may choose 5, 10 or 15 years), payments
         continue to your beneficiary until that period ends.

                                       13

<page>

     o   A monthly income to you for life. If you die before the total amount
         paid equals the amount used to purchase the annuity, payments continue
         to your beneficiary until the total amount paid equals the purchase
         price.

     o   A monthly income to you for life. You choose a percentage (50%, 66 2/3%
         or 100%) of your monthly income to continue for the lifetime of a
         survivor you name. If both you and your survivor die before the total
         amount paid equals the amount used to purchase the annuity, payments
         continue to a beneficiary until the total amount paid equals the
         purchase price.

     o   A monthly income paid to you for a fixed period of time (not less than
         60 months). If you die before the end of the fixed period, payments
         continue to your beneficiary until that period ends.

     o   A series of flexible income payments to you until your vested account
         equals zero. You choose the amount (not less than $1,000 annually) and
         how often you wish to receive this amount in a calendar year. You can
         choose to receive payments on an annual, semiannual, quarterly, or
         monthly basis. You may also request extra payments each calendar year.
         A minimum payment applies for years beginning with the year in which
         you reach age 70 1/2. Additional fees and charges may apply to your
         flexible income payments.

         After benefits begin, you may choose to have the balance of your vested

         account paid to you under one of the other options.

Other Options

     o A single sum payment.

A charge or restriction might apply for some investment options if you take all
or any part of your account in a single sum. Talk with your plan administrator
before making this choice.

A SPOUSE'S RIGHTS

Benefit Payments

                                       14

<page>

Federal law may require you to have your spouse's consent to start benefits
before the date you reach age 65. No consent is needed if your benefits are to
be paid to you monthly for life with 50% of your monthly income paid to your
spouse after your death.

Federal law may require you to have your spouse's consent to any form of benefit
which does not pay a monthly income to you for life with 50% of your monthly
income paid to your spouse after your death. Your spouse has the right to limit
consent to a specific optional form of benefit or to limit consent to a specific
beneficiary for any form which pays a death benefit. Your spouse can waive one
or both of these rights.

Your spouse may revoke consent at any time before benefits begin. A spouse's
consent is not valid for a former or a future spouse of yours.

Beneficiary

If you have been married for a full year, your spouse must consent to any
beneficiary you name for death benefits which are payable if you die before your
benefit payments start. Any consent given by your spouse before the first day of
the plan year (see Part 7) in which you reach age 35 will not be valid after the
first day of that year. A new consent must be obtained. If you stop working
before this date, however, any consent given by your spouse after you stop
working will remain valid for benefits from contributions made before you
stopped working.

Your spouse's consent may let you make future changes without his or her
consent. If it does not, you will need a new consent to make a new choice. You
do not need your spouse's consent to cancel a choice.

Your spouse may revoke consent at any time before your death. A spouse's consent
is not valid for a former or a future spouse of yours.

                      PART 6 IMPORTANT INFORMATION FOR YOU

YOUR RIGHTS

As a participant in the plan you have certain rights and protections under the
Employee Retirement Income Security Act of 1974 (ERISA). As a plan participant
you are entitled to:

                                       15

<page>

RECEIVE INFORMATION ABOUT YOUR PLAN AND BENEFITS

     o   You can examine all plan documents, without charge, at your plan
         administrator's office and at other specified locations, such as
         worksites. This includes insurance contracts and a copy of the latest
         annual report (Form 5500 series) filed by the plan with the U.S.
         Department of Labor and available at the Public Disclosure Room of the
         Employee Benefits Security Administration.

     o   You can get copies of all plan documents and other plan information
         upon written request to your plan administrator. Your administrator may
         make a reasonable charge for the copies.

     o   You will get a summary of the plan's annual financial report.

     o   You can get, once a year, a statement of your account values and what
         part of these values would be yours if you stop working under the plan
         now. If you don't have a right to these values, the statement will tell
         you how many more years you have to work to get a right to all or a
         part of these values. If you don't automatically get this statement,
         you can request it. The plan must provide the statement free of charge.

PRUDENT ACTIONS BY PLAN FIDUCIARIES
In addition to creating rights for plan participants, ERISA defines the duties
of the people who operate the plan. These people are called "fiduciaries," from
the Latin word meaning "trust" or "confidence". Fiduciaries must perform their
duties prudently and in the interest of plan participants and beneficiaries.

You can't be fired or discriminated against to prevent you from obtaining a
benefit or exercising your rights guaranteed under ERISA.

ENFORCE YOUR RIGHTS
If all or a part of your claim to a benefit is denied or ignored, you have a
right to know why this was done, to get copies of documents relating to the
decision without charge, and to appeal any denial, all within certain time
schedules.

Under ERISA you can take certain steps to enforce the rights described above.
For example, if you request a copy of plan documents or the latest annual report
from the plan you must get them within 30 days. However, if you haven't received
the materials after about 20 days, it might be a good idea to check with your
plan

                                       16

<page>

administrator to see if there are problems in giving you the materials you
requested. Then, if you haven't received them within 30 days of your request,
you can file suit in Federal court. The court can require your plan
administrator to provide the materials and pay you up to $110 for each day of
delay until you get the materials, unless they weren't sent because of reasons
beyond your plan administrator's control. Or, if all or a part of your claim for
benefits is denied or ignored, you may file suit in a state or Federal court or
you can ask the U.S. Department of Labor for help. In addition, if you disagree
with the plan's decision or lack thereof concerning the qualified status of a
domestic relations order, you may file suit in Federal court. If you think plan
fiduciaries are misusing the plan's money, or you feel you are being
discriminated against for exercising your rights, you can get assistance from
the U.S. Department of Labor or file suit in Federal court. Any time you sue,
the court will decide who should pay court costs and legal fees. If you win, the
court may order the person you've sued to pay these costs and fees. If you lose,
you may have to pay these costs and fees.

ASSISTANCE WITH YOUR QUESTIONS

If you have any questions about the plan, contact your plan administrator. If
you have any questions about this statement or about your rights under ERISA, or
if you need help in getting documents from the plan administrator, contact the
nearest office of the Employee Benefits Security Administration, U.S. Department
of Labor, listed in your telephone directory or the division of Technical
Assistance and Inquiries, Employee Benefits Security Administration, U.S.
Department of Labor, 200 Constitution Avenue N.W., Washington D.C. 2021 0. You
may also get certain publications about your rights and responsibilities under
ERISA by calling the publications hotline of the Employee Benefits Security
Administration.

QUALIFIED DOMESTIC RELATIONS ORDER (QDRO)

A domestic relations order is a judgment, decree, or order that provides child
support, alimony payments, or marital property rights. A domestic relations
order may give all or part of your plan benefits to an alternate payee if it is
determined to be a qualified domestic relations order (QDRO). An alternate payee
is your spouse, former spouse, child or dependent. In order to be a QDRO, the
domestic relations order must include certain information and meet certain other
requirements.

The plan administrator is required to set up detailed procedures for determining
if a domestic relations order is a QDRO. You and the alternate payee may get a
copy of these procedures, without charge, from the plan administrator.

                                       17

<page>

THE PLAN ADMINISTRATOR

The plan administrator has the full power to decide what the plan provisions
mean; to answer all questions about the plan, including those about eligibility
and benefits; and to supervise the administration of the plan. The plan
administrator's decisions are final.

PROCESSING DISTRIBUTIONS AND OTHER TRANSACTIONS

Distributions, investment directions, trades, and similar transactions shall be
completed as soon as administratively possible once the information needed to
complete such transaction has been received from you or whoever is providing the
information. The time it takes to complete a transaction is not guaranteed by
the plan, plan administrator, trustee, insurer, or us.

We, the plan administrator, or the trustee reserve the right not to value an
investment option on any given valuation date for any reason deemed appropriate
by us, the plan administrator, or the trustee.

Factors such as failure of systems or computer programs, failure of transmission
of data, forces that can't be controlled or anticipated, failure of a service
provider to timely receive values or prices, and corrections of errors will be
used to determine how soon it is possible to complete a transaction. While it is
anticipated that most transactions will be completed in a short period of time,
in no event will the time needed to process a transaction be deemed to be less
than 14 days. The processing date of a transaction shall be binding for all
purposes under the plan and considered the applicable valuation date for any
transaction.

DIRECT ROLLOVERS

Certain benefits which are payable to you may be paid directly to another
retirement plan or IRA. Your plan administrator will give you more specific
information about this option when it applies.

ROLLOVERS FROM OTHER PLANS

Under certain circumstances, you may rollover an amount from another plan to
this plan. The amount comes from contributions made because of your past
participation in that other plan. This is a rollover contribution and it becomes
a part of your vested account.
                                       18

<page>

The rollover contribution may come from:

     o   other qualified plans and may include after-tax employee contributions

     o   tax sheltered annuity plans (excluding after-tax employee
         contributions)

     o   governmental 457 plans

     o   IRAs if the amounts would be included in gross income

Rollover contributions must meet Federal rules so ask your plan administrator if
you are interested in knowing more about them. You decide how to use the
investment options for your rollover contributions.

TOP-HEAVY PLANS

We test our plan once a year to see if it is top-heavy. It would be top-heavy if
the account values for key employees exceed 60% of the account values for all
employees. Certain distributions are counted as an account value.

In general, a key employee is an officer or owner. Not all officers or owners
are key employees. Factors taken into account are the number of officers or
owners and their amount of pay or percentage of ownership.

For any year in which a plan is top-heavy, there are minimum requirements for
contributions and vesting.

Your plan administrator can tell you if our plan is top-heavy and if the
minimums apply.

ASSIGNING YOUR BENEFITS

Benefits under the plan cannot be assigned, transferred, or pledged to someone
else. The plan does make the following exceptions:

     o   qualified domestic relations orders such as alimony payments or marital
         property rights to a spouse or former spouse.

     o   any offset to your benefit per a judgment, order, decree, or settlement
         agreement because of a conviction of a crime against the plan or a
         violation of ERISA.

                                       19

<page>

YOUR SOCIAL SECURITY BENEFITS

Your benefits from this plan are in addition to your benefits from Social
Security. You should make your application for Social Security (and Medicare)
benefits 3 months before you wish Social Security payments to begin.

CLAIMING BENEFITS UNDER THE PLAN

Apply for benefits to your plan administrator. You'll need to complete all
necessary forms and supply needed information, such as the address where you
will get your checks.

Your claim will be reviewed and a decision made within 90 days. In some cases
the decision may be delayed for an additional 90 days. If so, you will be
notified in writing.

If you make a claim and all or part of it is refused, you'll be notified in
writing. You'll be told:

     o   why your claim was refused,

     o   the specific provisions of the plan governing the decision,

     o   what additional information is needed, if any, and

     o   what steps you should take to have your claim reviewed.

You have 60 days after you receive written notice your claim is refused to make
a written appeal to your plan administrator. You or your representative may also
review plan documents and submit issues and comments in writing.

A decision will be made on your appeal within 60 days. In some cases the
decision may be delayed for an additional 60 days. If so, you will be notified
in writing.

You will be notified in writing if your appeal is refused and given exact
reasons for the decision.

                                       20

<page>

CHANGING OR STOPPING THE PLAN

The plan can be changed at any time. We will notify you of any changes that
affect your benefits.

Benefits you have earned as of the date the plan is changed may not be reduced
except as required by law. If the plan is changed, the plan administrator can
tell you which benefits and forms of payment are preserved for you.

An earlier version of the plan may continue to apply in certain situations. For
example, participants who stop working for us have their eligibility for
benefits determined under the version in effect when they stopped working.

The plan can be terminated (stopped). If the plan is terminated, your account
will be 100% vested and nonforfeitable. Your account will be held under the plan
and continue to be credited with investment earnings until it is used to provide
benefits according to the terms of the plan.

OUR PLAN AND THE PENSION BENEFIT GUARANTY
CORPORATION (PBGC)

Because our plan is a defined contribution plan, we keep individual accounts for
all participants. The Employee Retirement Income Security Act of 1974 (ERISA)
excludes plans like this one from insurance provided through the PBGC.

                                       21

<page>

                          PART 7 FACTS ABOUT THE PLAN

PLAN SPONSOR AND IDENTIFICATION NUMBER

ADAMS COUNTY NATIONAL BANK
P0 BOX 3129
675 OLD HARRISBURG RD
GETTYSBURG, PA 17325-0129

EIN:   23-0581360

PLAN NAME AND PLAN NUMBER

ADAMS COUNTY NATIONAL BANK SALARY SAVINGS PLAN

PN:    002

TYPE OF PLAN

DEFINED CONTRIBUTION 401(K) PROFIT SHARING PLAN ERISA 404(c) COMPLIANT

PLAN ADMINISTRATOR

ADAMS COUNTY NATIONAL BANK
P0 BOX 3129
675 OLD HARRISBURG RD
GETTYSBURG, PA 17325-0129

TELEPHONE:         (717) 334-3161

TYPE OF ADMINISTRATION

TRUSTEE

LOAN ADMINISTRATOR

JOHN W. KRICHTEN

                                       22

<page>

PLAN YEAR

January 1 through December 31

FUNDING MEDIUM(S)

Principal Life Insurance Company
711 High Street
Des Moines, IA 50392-0001

TRUSTEE(S) OF THE PLAN

THOMAS A RITTER
PRESIDENT
ADAMS COUNTY NATIONAL BANK
P0 BOX 3129
675 OLD HARRISBURG RD
GETTYSBURG, PA 17325-0129

JOHN W KRICHTEN
CHIEF FINANCIAL OFFICER
ADAMS COUNTY NATIONAL BANK
P0 BOX 3129
675 OLD HARRISBURG RD
GETTYSBURG, PA 17325-0129

AGENT FOR LEGAL PROCESS OF THE PLAN

RONALD L. HANKEY, PRES.
ADAMS COUNTY NATIONAL BANK
P0 BOX 3129
675 OLD HARRISBURG RD
GETTYSBURG, PA 17325-0129

Service of legal process may also be made on your plan administrator or a plan
trustee.

                                       23

<page>

ADDITIONAL INFORMATION

For more information about Principal Financial Group(R) or your plan, you may
access the Principal website at www.principal.com or call TeleTouch(R) at
1-800-547-7754. TeleTouch is a special service from Principal Financial Group.

                                       24EXHIBIT 10.8

                       GROUP PENSION PLAN FOR EMPLOYEES OF
                           ADAMS COUNTY NATIONAL BANK

<page>

                                 PLAN HIGHLIGHTS

                                                                      GA 4-35568
                                                                           (8.0)

Plan Highlights briefly describes your plan. The rest of this booklet explains
in greater detail how the plan works.

We started your retirement plan on November 1, 1974. Farmers National Rank of
Newville started a retirement plan for their employees on October 15, 1960.
These two plans were merged on January 1, 2002.

Your retirement plan:

   o  Gives you a dependable source of income when you retire. Knowing how much
      you'll receive from the plan makes planning for your retirement easier.

   o Bases the ownership of your retirement benefit on your service.

   o  May provide a death benefit for your spouse or another person you name as
      beneficiary if you die before retirement.

   o Is funded entirely by our contributions.

   o Offers several different ways to receive your benefits. You choose the
     right way for you.

ABOUT THIS BOOKLET

This booklet is the summary plan description. It explains how your plan
currently works, when you qualify for benefits, and other information.

The plan is much more detailed and It governs your benefits.

Ask your plan administrator if you have questions. Part 8 of this booklet lists
your plan administrator's name and address.

                                        1

<page>

                                TABLE OF CONTENTS
JOINING THE PLAN                                                   PART I

   o  When You Join
   o  Changes in Your Participation

YOUR EARNED BENEFIT                                                 PART 2

   o  Figuring Your Earned Benefit
   o  Helpful Terms
   o  Who Provides Your Earned Benefit

RETIREMENT BENEFITS                                                 PART 3

   o  Al Normal Retirement Date
   o  At Early Retirement Date
   o  At Late Retirement Date
   o  Required Beginning Date
   o  Adjustments to Your Bone Fits

BENEFITS FOR INACTIVE PARTICIPANTS                                  PART 4

   o  Your Vested Benefit
   o  When Your Vested Benefit Starts
   o  Before Your Vesting Percentage is 100%

DEATH BENEFITS BEFORE RETIREMENT                                    PART 5

   o  A Spouse's Benefit
   o  Benefits Between Normal and Late Retirement

HOW THE PLAN PAYS BENEFITS                                          PART 6

   o  Forms to Choose
   o  Choosing at Retirement
   o  Choosing Pro-retirement Death Benefits
   o  Tax Considerations

                                        2

<page>

IMPORTANT INFORMATION FOR YOU                                        PART 7

   o Your Rights
   o A Spouse's Rights
   o Qualified Domestic Relations Order (ODRO)
   o The Plan Administrator
   o Direct Rollovers
   o Top-heavy Plans
   o Assigning Your Benefits
   o Your Social Security Benefits
   o Claiming Benefits Under the Plan
   o Changing the Plan
   o Stopping the Plan
   o Our Plan and the Pension Benefit Guaranty Corporation (PBGC)

FACTS ABOUT THE PLAN                                                 PART 8

                                        3

<page>

                             PART 1 JOINING THE PLAN

WHEN YOU JOIN

You join the plan as an active participant on the January 1 or July I on or
after you meet these requirements:

   o You are an eligible employee.

   o You have ONE YEAR of entry SERVICE.

   o You are age 20 1/2 or older.

However, if you were a participant under the Group Pension Plan for Employees of
Farmers National Bank of Newville (the merged plan), you join the plan as an
active participant on January 1, 2002.

ELIGIBLE EMPLOYEE MEANS:

   o  You are each of the following;

      Not represented by a bargaining unit which has bargained with us in good
      faith on the subject of retirement benefits.

      Not a leased employee.

You earn a year of entry service at the end of a service period in which you
have 1,000 or more hours of service.

Service periods are one-year long. Your first one starts on the date you are
hired and ends on the day before your first anniversary date. Following ones
begin on January 1 and end on December 31, beginning with the January 1
following the date you are hired.

An hour of service is each hour of paid working time. In addition, it includes
up to 501 hours during any one period of paid non-working time, such as paid
vacation.

CHANGES IN YOUR PARTICIPATION

You become an inactive participant on the date you:

   o Are no longer an eligible employee.

   o Have a break in service (see Part 2).

You stop being a participant on:

   o The date you get a single sum payment in place of all other benefits.

   o The date of your death.
                                        4

<page>

   o The date you stop working for us if your vesting percentage is zero (see
     Part 4),

You rejoin the plan as an active participant when you work another hour for us
as an eligible employee.

                                        5

<page>

                           PART 2 YOUR EARNED BENEFIT

As you work for us, you earn your retirement benefit. This earned benefit grows
with your service and pay.

FIGURING YOUR EARNED BENEFIT

This formula is used to figure your earned benefit:

(1)   1.00% of your average monthly pay not over your Social Security base plus
      1.3% of your average monthly pay  over your Social Security base

      multiplied by

(2)   your benefit service but not more than 45 years

      plus

(3)   your  benefit  under the merged plan (see Part 1) on the day before
      January 1, 2002,  which was frozen as of April 30, 1993

If you were ever a participant in another plan of ours, your earned benefit may
be increased if total service taken into account under all plans of ours will be
mote than 35 years. Ask the plan administrator if you want to know if the
adjustment applies to you.

HELPFUL TERMS

Average monthly pay is the average of your monthly pay for the 5 consecutive pay
years out of the 10 latest pay years which give the highest average.

Pay years in which you stop working for us are excluded. Pay years in which you
have not earned an hour of service are excluded.

If you were an employee of Farmers National Bank of Newville on December 31.
2001, your average monthly pay will exclude pay years before January 1, 2002.

Benefit service means the sum of your years of service. You have one year of
service for each service period in which you have 1.000 or more hours of
service. You have a partial year of service in the year you start working for us
or the year you stop working for us if you have fewer than 1,000 hours of
service. Your partial year of service is figured by dividing your hours of
service for the period (rounded to the next 100 hours) by 1,000. However, for
the two-month service period ending December 31. 1995, you have .20 of a year if
you have 166 or more hours of service.

Service before January 1, 2002, is not counted if you were an employee of
Farmers National Bank of Newville on December 31, 2001.

Hour of service means each hour of paid working time. In addition, we will count
up to 501 hours during any one period of paid non-working time, such as paid
vacation.

                                        6

<page>

Monthly pay for any pay year is 1/12th of your total pay for such year.

Pay year means a one-year period ending on December 31 (October 31 before
November 1, 1995).

Service period means a one-year period ending on October 31 before November 1,
1995; a two-month period beginning on November 1, 1995, and ending on December
31, 1995: and a one-year period ending on December 31 thereafter.

Social Security base means 1/12th of the average of the Social Security taxable
wage bases that have applied for the 35-year period ending on the last day of
the calendar year in which you reach Social Security retirement age. You reach
Social Security retirement age on (i) your 65th birthday, if you were born
before January 1, 1938; (ii) your 66th birthday, if you were born after December
31, 1937 and before January 1, 1955; and (iii) your 67th birthday, if you were
born after December 31, 1954.

In calculating your Social Security base for any plan year, the taxable wage
base in effect for the current and any later plan year is assumed to be the same
as the taxable wage base in effect at the beginning of the plan year in which
the calculation is being made.

Your Social Security base for any plan year before the 35-year period is the
taxable wage base in effect at the beginning of that plan year. Your Social
Security base for any plan year after the 35-year period is your Social Security
base determined for the plan year in which the 35-year period ends.

The average varies based on your age. The younger you are, the higher the
average. Ask your plan administrator if you want to know your current amount.

WHO PROVIDES YOUR EARNED BENEFIT

Your earned benefit is provided entirely by our contributions to the plan.

The contributions are invested and accumulate to provide benefits under the
plan. The plan funds are for the exclusive benefit of participants and their
beneficiaries.

                                        7

<page>

                           PART 3 RETIREMENT BENEFITS

Your plan is designed to provide a retirement income for you. The amount you
receive each month when you retire is based on your earned benefit.

AT NORMAL RETIREMENT DATE

UNLESS YOU CHOOSE OTHERWISE, YOUR RETIREMENT BENEFIT BEGINS ON YOUR NORMAL
RETIREMENT DATE IF YOU have an earned benefit (see Part 2) and you stop working
for us. Even if you continue to work for us, you may choose to begin your
retirement benefit on your normal retirement date.

Normal retirement data means the FIRST day of the month on or alter the date you
reach your normal retirement age.

Your normal retirement age is the earlier of:

   o The older of (1) age 62 or (ii) your age on the date you have 30 years of
     vesting service (see Part 4).

   o  The older of (i) age 65, or (ii) your age on the date 5 years after the
      January 1 on or before the date you entered the plan.

AT EARLY RETIREMENT DATE

If you choose to retire early, your earned benefit will be less than the amount
you could have earned by working until normal retirement date.

You receive a percentage of your earned benefit because payments begin at a
younger age and are expected to continue longer. The percentage is based on the
number of years you retire early and is shown in the following table:

                                            Approximate
            Years You                       Percentage of
            Retire Early                    Earned Benefit

                 1                                93
                 2                                86
                 3                                80
                 4                                73
                 5                                66
                 6                                63
                 7                                60
                 8                                56
                 9                                53
                10                                50

The percentage is adjusted for parts of a year.

                                        8

<page>

However, if you have 30 or more years of service, you may elect to retire at age
62 with no reduction in benefits. fn addition, if you have 30 or more years of
service and elect to retire before ago 62, your earned benefit will be reduced
based upon the years you retire early before age 62.

EARLY RETIREMENT DATE MEANS THE first day OF any MONTH YOU CHOOSE WHICH IS ON OR
after the later of the date you stop working for us or the date you reach early
retirement age.

Your early retirement age is your age on the later of:

   o The dale you reach age 55.

   o The date you have 15 years OF vesting service (SEE Part 4).

AT LATE RETIREMENT DATE

You may choose to start benefits on your late retirement date. When you retire
late, your earned benefit as of your normal retirement date is increased by a
percentage because payments begin at an older age and are expected to continue
for a shorter time. The percentage is based on the number of years you retire
tare and is shown in the following table:
                                             Percentage
            Years You                       Increase to Your
            Retire Late                     Earned Benefit

                 1                                   9
                 2                                   20
                 3                                   32
                 4                                   45
                 5                                   59
                 6                                   75
                 7                                   93
                 8                                   113
                 9                                   134
                10                                   159

The percentage is adjusted for parts of a year. Your plan administrator can give
you the percentages for other years.

Your income won't be less than your earned benefit as of your late retirement
date.

If you retire after age 70 1/2 your benefit will be increased to take into
account the period between the April 1 following the calendar year in which you
reach age 70 1/2 and the date your retirement benefits begin.

LATE RETIREMENT DATE MEANS, if you continue working for us after your normal
retirement date, the first day of the month after the date you stop working for
us.

You may choose to have your benefits start on the first day of any month after
your normal retirement date and before you stop working. If you do, that date
becomes your fate retirement date.

                                        9

<page>

It's possible to have your benefits begin after your late retirement date. If
you think you would like to delay your benefits, talk to the plan administrator
before your late retirement date.

REQUIRED BEGINNING DATE

Under the law you must begin receiving benefits by your required beginning date.
Your required BEGINNING DATE IS THE APRIL 1 FOLLOWING the LATER of the calendar
year in which you reach age 70 1/2 or stop working for us. However, if you are a
5% owner, your benefits must begin by the April 1 following the calendar year in
which you reach age 70 1/2.

ADJUSTMENTS TO YOUR BENEFITS

The amount you receive will be adjusted if your: retirement benefit is not paid
under the normal form of income. Normal form of income means a form which pays
you monthly income for life. If you die before monthly payments have been made
for 5 years, your beneficiary gets the payments that are left.

Part 6 explains the other forms you may choose.

The law limits the amount of pay that may be used in any plan year to determine
benefits. The 2002 limit is $200,000. This limit is subject to change each year
for cost of living changes.

The law also limits the dollar amour-it of annual benefits that may be paid to
you in any year to the lesser of 100% of your average pay for the highest three
years or a dollar limit. These limits are based on a monthly income payable to
you for life and no benefits payable after your death. Benefits under OTHER
forms will ALSO BE limited. THE dollar amount is decreased if you retire before
age 62 and increased if you retire after age 65. The dollar limit in 2002 is
$160,000. This limit is subject to change each year for cost of living changes.

Ask your plan administrator if you want to know more about either of these
limits.

                                       10

<page>

                    PART 4 BENEFITS FOR INACTIVE PARTICIPANTS

YOUR VESTED BENEFIT

Each year as you work for us, you earn a right to a benefit if you stop working
for us before retirement. This benefit is called your vested benefit.

Your vested benefit is equal to:

(1) your earned benefit

      multiplied by

(2) your vesting percentage

If you become an inactive participant because you are no longer an eligible
employee (see Part 1), but you are still working for us, your service after you
become an inactive participant is used to figure your vesting percentage but not
your earned benefit.

Your vesting percentage will be 100% if you are working for us:

   o On or after the date you reach normal retirement age (see Part 3).

   o On or after the date you reach early retirement age (see Part 3).

Before that date, the following schedule determines your vesting percentage:

            Years of                  Vesting
         Vesting Service             Percentage

            Less than 5                     0
            5 or more                     100

Vesting service means the sum of your years of service. You have one year of
service for each service period in which you have 1,000 or more hours of
service. A service period is a one-year period ending on December 31 (October 31
before November 1, 1996). An hour of service is each hour of paid working time.
In addition, it includes up to 501 hours during any one period of paid
non-working time, such as paid vacation.

Your vesting service before a period of breaks in service is not counted if your
vesting percentage is zero and your consecutive breaks in service equal or are
more than the greater of 5 years (one year before November 1, 1985) or your
earlier vesting service.

Break in service means you have 500 or fewer hours of service in a service
period.

Federal law delays a break in service for your pregnancy, birth of your child,
placement of a child with you by reason of your adoption of such child, or your
caring for such child following such birth or placement.

                                       11

<page>

WHEN YOUR VESTED BENEFIT STARTS

If you become an inactive participant, you will start receiving your vested
benefit on your retirement date. Part 3 explains when you may retire and how
your vested benefit is adjusted if you retire early or late.

Your vested benefit is the amount you will receive under the normal form of
income. Normal form of income means a form which pays you monthly income for
life. If you die before monthly payments have been made for 5 years, your
beneficiary gets the payments that are left.

Part 6 explains other forms of benefit you may choose when you retire and tax
considerations. If the value of your vested benefit is not more than $5,000, it
will be paid to you in a single sum when you stop working for us. There is no
choice to make.

You need to tell us your current address when you wish payments to begin.
Federal law may require you to have your spouse's consent (see Part 7).

BEFORE YOUR VESTING PERCENTAGE IS 100%

You forfeit (lose the right to) your earned benefit if you stop working for us
when your vesting percentage is zero. We will restore this forfeited amount if
you come back to work as an eligible employee (see Part 1) before the end of the
first period of five consecutive one-year breaks in service beginning after you
stop working for us.

                                       12

<page>

                     PART 5 DEATH BENEFITS BEFORE RETIREMENT

The primary put pose of your plan is to provide income for you during your
retirement years. However, if you die before you retire, a death benefit may be
payable to your beneficiary or spouse.

A SPOUSE'S BENEFITS

A death benefit is paid to your spouse if these requirements are met:

   o You die before retirement benefits start and before your normal retirement
     date.

   o You were married for the full year before your death.

   o Your vesting percentage is greater than zero (see Part 4).

The death benefit equals the survivor's benefit under a 100% survivor form. The
benefit is payable to your spouse as of the earliest date you could have retired
on or after the date of your death. (This will be your normal retirement date if
you had not met the service requirement for early retirement.) Your spouse may
choose to begin benefits on a finer date. Benefits must begin by the date you
would have been age 70 1/2.

The amount of the benefit is based on your vested benefit when you die. If you
are not working for us then, it is based on your vested benefit when you stopped
working for us. II your spouse starts receiving this death benefit before or
after what would have been your normal retirement date, your vested benefit is
adjusted for early or late retirement as explained in Part 3. Your vested
benefit is also adjusted for the 100% survivor form. This reduced amount is
payable to your spouse monthly for life. (If, during the election period for
retirement forms, you choose a survivor form with a different survivor
percentage for your spouse, that percentage applies instead.)

If the value of the spouse's death benefit is not more than $5,000, it will be
paid to your spouse in e single sum in place of the monthly income.

BENEFITS BETWEEN NORMAL AND LATE RETIREMENT

If you die after your normal retirement date and before retirement benefits
begin, death benefits are paid in this way:

   o  If you are married for the full year before your death, death benefits are
      the same as if you had died before your normal retirement date.

   o  If you are not married for the full year before your death, a death
      benefit may be payable depending on the optional form of retirement
      payments you chose before your death. lf you chose a form with a death
      benefit, your beneficiary or survivor will receive that benefit as if you
      had retired on the date of your death.

Federal law limits how death benefits may be paid. Your plan administrator can
tell you what forms you may choose. You should choose before your normal
retirement date to be sure of the death benefit of your choice.

                                       13

<page>

                        PART 6 HOW THE PLAN PAYS BENEFITS

You make an important choice when you decide how to receive your benefit. Things
to consider include the money you will need every month, any death benefits you
want to provide, and your tax situation.

You may choose to have your retirement benefit paid under any one of the
optional forms available under the plan. Your plan administrator or tax advisor
can help you make your choice.

If the value of your earned benefit is not more than $5,000, it will be paid to
you in a single sum. There is no choice to be made.

The amount of the payments will depend on the amount of your earned benefit,
your age, the age of your survivor and the optional form chosen.

FORMS TO CHOOSE

The plan offers the following ways for you to receive your benefit:

   o A monthly income to you for life. No benefits are payable after your death.

   o  A monthly income to you for life. If you die before the and of a certain
      number of years (you may choose 5, 10 or 15 years), payments continue to
      your beneficiary until that period ends.

   o  A monthly income to you for life, You choose a percentage (50%, 66 2/3%,
      or 100%) of your monthly income to continue for the lifetime of a survivor
      you name.

CHOOSING AT RETIREMENT

You may choose any of the optional forms of benefit. Your choice must be made
within 90 days of the date benefits begin. (Federal rules may limit the forms
available to you.) You may change or cancel your choice at any time before
benefits start. Part 7 explains your spouse's rights.

It you don't have a choice in effect or your spouse revokes consent, your
retirement benefits are paid in this way:

   o  If you are married, retirement benefits are paid to you monthly for life.
      After your death, your monthly income is paid to your spouse for as long
      as your spouse fives.

   o  If you are single, retirement benefits are paid to you monthly for life.
      If you die before monthly payments have been made for & years, your
      beneficiary gets the payments that are left.

CHOOSING PRE-RETIREMENT DEATH BENEFITS

Your spouse may choose to have the spouse's benefit described in Part 5 paid in
another form. If the value of the spouse's benefit is not more than $5,000, it
will be paid to your spouse in a single sum. There is no choice to be made.

                                       14

<page>

The optional forms of death benefit are any of the monthly income forms.

Any choice by your spouse or beneficiary must be made before benefits begin.

TAX CONSIDERATIONS

Benefits you receive are normally subject to income taxes. You may be able to
postpone or reduce the taxes that would otherwise be due. In addition, benefits
you receive before age 59 1/2 may be subject to a 10% penalty tax.

Each person's tax situation differs. Your financial advisor can help you decide
the best way for you to receive benefits.

                                      15

<page>

                      PART 7 IMPORTANT INFORMATION FOR YOU

YOUR RIGHTS

As a participant in the plan you have certain rights and protections under the
Employee Retirement INCOME SECURITY Act OF 1974 (ER1SA). As a plan participant,
you are entitled to:

Receive Information About Your Plan and Benefits
o  You can examine all plan documents, without change, at your plan
   administrator's office and at other specified locations, such as worksites.
   This includes insurance contracts and a copy of the latest annual report
   (Form 5500 series) filed by the plan with the U.S. Department of Labor and
   available at the Public Disclosure Room of the Pension and Welfare Benefit
   Administration.

o  You can get copies of all plan documents and other plan information noted
   above upon written request to your plan administrator. Your administrator may
   make a reasonable charge for the copies.

o  You will get a summary of the plan's annual financial report.

o  You can get, once a year, a statement OF your earned BENEFIT AND WHAT PART OF
   THIS BENEFIT YOU would get at normal retirement date (see Pan 3) if you stop
   working under the plan now. If you don't have a right to a benefit, the
   statement will tell you how many more years you have to work to get a right
   to all or a part of a benefit. If you don't automatically get this statement,
   you can request it. The plan must provide the statement free of charge.

Prudent Actions by Plan Fiduciaries
In addition to creating rights for plan participants, ERISA defines the duties
of the people who operate the plan. These people are called "fiduciaries," from
the Latin word meaning "trust" or "confidence". Fiduciaries must perform their
duties prudently and in the interest of plan participants and beneficiaries.

You can't be fired or discriminated against to prevent you from obtaining a
benefit or exercising your rights guaranteed under ERISA.

Enforce Your Rights
If all or a part of your claim to a benefit is denied or ignored, you have a
right to know why this was done, to get copies of documents relating to the
decision without a charge, and to appeal any denial, all within certain time
schedules.

Under ERISA you can take certain steps to enforce the rights described above.
For example, if you request a copy of plan documents or the latest annual report
from the plan, you must get them within 30 days, However, if you haven't
received the materials after about 20 days, it might be a good idea to check
with your plan administrator to see if there are problems in giving you the
materials you requested. Then, if you haven't received them within 30 days of
your request, you can file suit in Federal court. The court can require your
plan administrator to provide the materials and pay you up to $110 for each day
of delay until you get the materials, unless they weren't sent because of
reasons beyond your plan administrator's control. Or, if all or a part of your
claim for benefits is denied or ignored, you may file suit in a stale or Federal
court or you can ask the U.S. Department of Labor for help. In addition, if you
disagree with the plan's decision or lack thereof

                                       16

<page>

concerning the qualified status of a domestic relations order, you may file suit
in Federal court. If you think plan fiduciaries are misusing the plan's money,
or you feel you are being discriminated against for exercising your rights, you
can got assistance from the U.S. Department of Labor or file suit in Federal
court. Any time you sue, the court will decide who should pay court COSTS AND
LEGAL FEES. if you WIN, the court may order the person you've sued to pay these
costs and lees. if you lose, you may have to pay these costs and fees.

Assistance With Your Questions
If you have any questions about the plan, contact your plan administrator. If
you have any questions about this statement or about your rights under ERISA, or
if you need help in getting documents from the plan administrator, contact the
nearest office of the Pension and Welfare Benefits Administration, U.S.
Department of Labor, listed in your telephone directory or the Division of
Technical Assistance and inquiries, Pension and Welfare Benefits Administration.
(P.S. Department OF Labor, 200 Constitution Avenue N.W., Washington D,C. 20210.
You may also got certain publications about your rights and responsibilities
under ERISA by calling the publications hotline of the Pension and Welfare
Benefits Administration.

A SPOUSE'S RIGHTS

Other parts of this booklet refer to a spouse's rights. Federal law gives these
rights to a spouse for his or her protection.

Your spouse must consent to the start of benefits before the date you reach
normal retirement age (see Part 3). No consent is needed if your benefits are to
be paid to you monthly for life with 100% of your monthly income paid to your
spouse after your death,

Your spouse must consent to any form of benefit which does nor pay a monthly
income to you for life with 100% of your monthly income paid to your spouse
after your death. Your spouse has the right to limit consent to a specific
optional form of benefit or to limit consent to a specific beneficiary for any
form which pays a death benefit. Your spouse can waive one or both of these
rights.

Your spouse's consent may let you make future changes without his or her
consent. If it does not, you will need a new consent to make a new choice. You
do not need your spouse's consent to cancel a choice.

Your spouse may revoke consent at any time before benefits begin. A spouse's
consent is not valid for a former or a future spouse of yours.

QUALIFIED DOMESTIC RELATIONS ORDER (QDRO)

A domestic relations order is a judgment, decree, or order that provides child
support, alimony payments, or marital property rights. A domestic relations
order may give all or pan of your plan benefits to an alternate payee if it is
determined to be a qualified domestic relations order (QDRO). An alternate payee
is your spouse, former spouse, child or dependent. In order to be a QDRO, the
domestic relations order must include certain information and meet certain other
requirements.

The plan administrator is required to set up detailed procedures for determining
if a domestic relations order is a QDRO. You and the alternate payee may get a
copy of these procedures, without charge, from the plan administrator.

                                       17

<page>

THE PLAN ADMINISTRATOR

The plan administrator has the full power to decide what the plan provisions
mean; to answer all questions about the plan, including those about eligibility
and benefits; and to supervise the administration of the plan. The plan
administrator's decisions are final.

DIRECT ROLLOVERS

Certain benefits which are payable to you may be paid directly to another
retirement plan or IRA. Your plan administrator will give you more specific
information about this option when It applies,

TOP-HEAVY PLANS

We test our plan once a year to see if it is top-heavy. It would be top-heavy if
the present values of the earned benefits for key employees exceed 60% of the
present values of the earned benefits for all employees. Certain distributions
are counted as earned benefits,

In general a key employee is an officer or owner. Not all officers or owners are
key employees. Factors taken into account are the number of officers or owners
and their amount of pay or percentage of ownership,

For any year in which a plan is top-heavy, there are minimum requirements for
benefits and vesting. Your plan administrator can tell you if our plan is
top-heavy and if the minimums or reduced limits apply.

ASSIGNING YOUR BENEFITS

Benefits under the plan cannot he assigned. transferred, or pledged to someone
else. The plan does make the following exceptions:

   o  Qualified domestic relations orders such as alimony payments or marital
      property rights to a spouse or former spouse.

   o  Any offset to your benefit per a judgment, order, decree, or settlement
      agreement because of a conviction of a clime against the plan or a
      violation of ERISA.

YOUR SOCIAL SECURITY BENEFITS

Your benefits from this plan are in addition to your benefits from Social
Security You should make your application for Social Security (and Medicare)
benefits 3 months before you wish Social Security payments to begin.

CLAIMING BENEFITS UNDER THE PLAN

Apply for benefits to your plan administrator. You'll need to complete all
necessary forms and supply needed information, such as the address where you
will get your checks.

Your claim will be reviewed and a decision made within 90 days. In some cases
the decision may be delayed for an additional 90 days. If so, you will be
notified in writing.

                                       18

<page>

If you make a claim and all or part of it is refused, you'll be notified in
writing. You'll be told:

   o why your claim was refused,

   o the specific provisions of the plan governing the decision,

   o  what additional information is needed, if any, and

   o  what steps you should take to have your claim reviewed.

You have 60 days after you receive written notice your claim is refused to make
a written appeal to your plan administrator. You or your representative may also
review plan documents and submit issues and comments in writing.

A decision will be made on your appeal within 60 days. In some cases the
decision may be delayed for an additional 60 days. If so, you will be notified
in writing.

You will be notified in writing if your appeal is refused and given exact
reasons for the decision.

CHANGING THE PLAN

The plan can be changed at any time. We will notify you of any changes that
affect your benefits.

Benefits you have earned as of the date the plan is changed may not be reduced
except as required by law. If the plan is changed, the plan administrator can
tell you which benefits and forms of payment are preserved for you.

An earlier version of the plan may continue to apply in certain situations. F or
example, participants who stop working for us have their eligibility for
benefits determined under the version in effect when they stopped working.

STOPPING THE PLAN

We hope to continue the plan, but the plan can be terminated (stopped). If the
plan is terminated, the plan assets will be used up on a priority basis to
provide a retirement income I or plan participants.

Determining which benefits fall into which priority is very complex, but in
general, it works like this. Benefits for plan participants who retire 3 years
or more before termination will be given first priority. Then those who were
eligible to retire at least 3 years before termination will receive benefits.
Next those benefits of all other participants which were vested before
termination of the plan and finally, those non-vested benefits which became
vested on termination of the plan.

Where a benefit falls in the priorities also depends on:

   o  plan provisions in effect 5 years prior to the termination date,

   o  a percentage of arty increase in benefits due to changes in the plan
      during the last 5 years,

   o  amounts guaranteed by the Pension Benefit Guaranty Corporation,

                                       19

<page>

   o  limitations for plan participants who are classified as substantial
      owners, and

   o  dollar maximums on pensions, all as regulated by the Pension Benefit
      Guaranty Corporation.

Our Plan and the Pension Benefit Guaranty Corporation (PBGC}

Your pension benefits under this plan are insured by The Pension Benefit
Guaranty Corporation (PBGC), a federal insurance agency. If the plan terminates
(stops) without enough money to pay all benefits, the PBGC will step in to pay
pension benefits. Most people receive all of the pension benefits they would
have received under their plan, but some people may lose certain benefits.

The PBGC guarantee generally covers: (1) normal and early retirement benefits;
(2) disability benefits if you become disabled before the plan terminates; and
(3) certain benefits for your survivors.

The PBGC guarantee generally does not cover: (1) benefits greaten than the
maximum guaranteed amount sat by the law for the year in which the plan
terminates; (2) some or all of benefit increases and new benefits based on plan
provisions that have been in place for fewer than 6 years at the time the plan
terminates; (3) benefits that are not vested because you have not worked long
enough for the company; (4) benefits for which you have not met all of the
requirements at the time the plan terminates; (5) certain early retirement
payments (such as supplemental benefits that stop when you become eligible for
Social Security) that result in an early retirement monthly benefit greater than
your monthly benefit at the plan's normal retirement age: and (6) non-pension
benefits, such as health insurance, life insurance, certain death benefits,
vacation pay, and severance pay

Even it certain of your benefits ate not guaranteed, you still may receive some
of those benefits from the PBGC depending on how much money your plan has and on
how much the PBGC collects from employers.

For more information about the PBGC end the benefits it guarantees, ask your
plan administrator. Or you may contact the PBGC's Technical Assistance Division,
1200 K Street NW, Suite 930, Washington DC 20005-4026 or call (202) 326-4000
(not a toll free number). TTY/TDD users may call the Federal relay services
toll-free at 1-800-877-8339 and ask to be connected to 202-326-4000. Additional
information about the PBGC's pension insurance program is available through the
PBGC's website on the Internet at http:f/www.pbgc.gov.

                                       20

<page>

                                   PART 8 FACTS ABOUT THE PLAN

Plan Sponsor and Identification Number

Adams County National Bank
675 Old Harrisburg Road
Gettysburg, PA 17325-3400

EIN: 23-0581360

PLAN NAME AND PLAN NUMBER

Group Pension Plan for Employees of Adams County National Bank

PN:   001

TYPE OF PLAN

DEFINED BENEFIT

Plan Administrator

Adams County National Bank
675 Old Harrisburg Road
Gettysburg, PA 17325-3400

Telephone:    (717) 334-3161

TYPE OF ADMINISTRATION

Trustee

PLAN YEAR

January 1 through December 31

Before November 1. 1998, plan years ended en each October 31.

Funding Medium(s)

Principal Life Insurance Company
711 High St
Des Moines IA 50392-0001

                                       21

<page>

TRUSTEE(S) OF THE PLAN

John W. Krichten, CFO
Adams County National Bank
675 Old Harrisburg Road
Gettysburg, PA 17325-3400

Delaware Charter Guarantee & Trust Company, a Delaware corporation conducting
business under the trade name of Trustar(SM) Retirement Services 1013 Centre
Road Wilmington, DE 19805-1265

AGENT FOR LEGAL PROCESS OF THE PLAN

President
Adams County National Bank
675 Old Harrisburg Road
Gettysburg, PA 17325-3400

Service of legal process may also be made on your plan administrator or a plan
trustee.

ADDITIONAL INFORMATION

Principal Life and Delaware Charter Guarantee & Trust Company are member
companies of the Principal Financial Group.

                                       22

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00080-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00080-of-00352.parquet"}]]