Document:

EXHIBIT 10.6

 

ACKNOWLEDGEMENT

AND RELEASE AGREEMENT

 

READ IT CAREFULLY

 

NOTICE TO WILLIAM HUMMEL

 

This is a very important legal document, and you should carefully
review and understand the terms and effect of this document before signing
it.  By signing this Acknowledgement and
Release (“Release Agreement”), you are agreeing to completely release First
Perry Bancorp, Inc., the First National Bank of Marysville, HNB Bancorp, Inc.,
Halifax National Bank, and the holding company created under the Agreement and
Plan of Consolidation between First Perry Bancorp, Inc. and HNB Bancorp, Inc.
dated on or about June 18, 2008 currently referred to as Riverview
Financial Corporation, and their subsidiaries, affiliates, directors and
officers.  Therefore, you should consult
with an attorney before signing this Agreement. 
You have twenty-one (21) days from the day of receipt of this document
to consider the Agreement. The twenty-one (21) days will begin to run on the
day after receipt.  If you choose to sign
the Agreement, you will have an additional seven (7) days following the
date of your signature to revoke the Agreement, and the Agreement shall not
become effective or enforceable until the revocation period has expired.

 

This
Acknowledgement and Release Agreement (the “Release Agreement”) is entered into
as of June 18, 2008, by and among First Perry Bancorp, Inc. (“First
Perry”), the First National Bank of Marysville (“Marysville”), HNB Bancorp, Inc.
(“HNB”), Halifax National Bank (“Halifax”), the holding company created under
the Agreement and Plan of Consolidation between First Perry Bancorp, Inc.
and HNB Bancorp, Inc. dated June 18, 2008 currently referred to as
Riverview Financial Corporation (“Holding Company”), and William Hummel (“Executive”).

 

WHEREAS,
Executive is the Chief Executive Officer of First Perry and Marysville;

 

WHEREAS,
First Perry and HNB will enter into an Agreement and Plan of Consolidation
dated June 18, 2008 (“Consolidation Agreement”) pursuant to which First
Perry and HNB shall consolidate into the new Holding Company which is a
Pennsylvania business corporation (the “Consolidation”);

 

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WHEREAS,
pursuant to the Consolidation Agreement, Marysville has agreed to make the
payments set forth herein in exchange for the execution of this Release
Agreement and an employment agreement between the Holding Company and Executive
(“Hummel Employment Agreement”);

 

WHEREAS,
First Perry and HNB are only willing to enter into the Consolidation Agreement
on the condition that Executive provides the inducements set forth in this
Agreement by executing this Release Agreement and entering into the Hummel
Employment Agreement.

 

NOW
THEREFORE, in consideration of the foregoing and other good and valuable
consideration the receipt and sufficiency of which is hereby acknowledged, and
intending to be legally bound, it is agreed as follows:

 

1.             Retirement.  Executive, First Perry, Marysville, HNB, and
Halifax hereby mutually agree that the Executive shall retire from the position
of Chief Executive Officer of First Perry and Marysville absolutely at the
effective time of the Consolidation, as defined in the Consolidation Agreement.

 

2.             Consideration.  Beginning on the effective date of the
Consolidation, as defined in the Consolidation Agreement, in consideration of
signing this Release Agreement, First Perry shall pay Executive the equivalent
to one year’s salary in twenty-four equal monthly installments.

 

3.             Release and Waiver.

 

Executive, on behalf of himself, his heirs and assigns, irrevocably and
unconditionally releases First Perry, Marysville, HNB, Halifax, Holding Company
and their respective predecessors, successors, affiliates, subsidiaries,
parents, partners, shareholders, directors, officers, agents, employees, attorneys,
and all other persons or entities who could be said to be jointly or severally
liable with them from all claims, controversies, liabilities, demands, causes
of action, debts, obligations, promises, acts, agreements, and damages of
whatever kind or nature, whether known or unknown, suspected or unsuspected,
foreseen or unforeseen, liquidated or contingent, related to Executive’s
employment, termination of employment, including but not limited to, any and
all claims for breach of express or implied contract or covenant of good faith
and fair dealing (whether written or oral), all claims for retaliation or
violation of public policy, breach of promise, detrimental reliance or tort
(e.g. intentional infliction of emotional distress, defamation, wrongful termination,
interference with contractual or advantageous relationship, etc), whether based
on common law or otherwise; all claims arising under Title VII of the Civil
Rights Act of 1964, as amended; the Age Discrimination in Employment Act; the
Federal Older Workers Benefit Protection Act, the Family and Medical Leave Act,
any Whistleblower provision of any statute or law, the Americans with
Disabilities Act; the Employee Retirement Income Security Act of 1974, any
other statute, regulation or law or amendments thereto, claims for emotional
distress, mental anguish, personal injury, loss of consortium; any and all
claims that may be asserted on

 

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Executive’s
behalf by others (including the Equal Employment Opportunity Commission); or
any other federal, state or local laws or regulations relating to employment or
benefits associated with Executive’s employment.

 

EXECUTIVE ACKNOWLEDGES AND AGREES THAT THIS RELEASE IS A FULL AND FINAL
BAR TO ANY AND ALL CLAIM(S) OF ANY TYPE THAT HE MAY NOW HAVE AGAINST
FIRST PERRY, MARYSVILLE, HNB, HALIFAX, AND HOLDING COMPANY TO THE EXTENT
PROVIDED ABOVE BUT THAT IT DOES NOT RELASE ANY CLAIMS THAT MAY ARISE AFTER
THE DATE OF THIS AGREEMENT.

 

4.             Acceptance Period.

The
following notice is included in this Release Agreement as required by the Older
Workers Benefit Protection Act:

 

You have up to twenty-one (21) days from the date of receipt of this
release to accept the terms of this release, although you may accept it at any
time within those twenty-one (21) days. 
You are advised to consult with an attorney regarding this release.

 

The twenty-one (21) day
period will begin to run on the day after Executive receives this Release
Agreement.  It will then run for a full
twenty-one (21) calendar days and expire at the end of the twenty-first day
(the “Acceptance Period”).  In order to
accept this Release Agreement, Executive must sign his name and date his
signature at the end of this letter and return it to HNB and First Perry via
Renee Lieux, Bybel Rutledge LLP, 1017 Mumma Road, Suite 302, Lemoyne,
Pennsylvania 17043.  If the twenty-first
day of the Acceptance Period falls on a Saturday, a Sunday, or a legal holiday,
Ms. Lieux’s receipt of his acceptance by the close of business on the next
business day immediately following such Saturday, Sunday or legal holiday will
be sufficient to effect a timely acceptance of this Release Agreement.

 

5.             Revocation Period.  Executive has the right to revoke this
Release Agreement at any time within seven (7) days from the date
Executive signs and delivers this Agreement to First Perry and HNB (the “Revocation
Period”), and this Agreement will not become effective and enforceable until
the Revocation Period has expired. 
(NOTE:  The Revocation Period will
begin on the day after the day on which Executive
has signed this Agreement and delivered it to First Perry and HNB and, as
indicated by the date Executive affixes to his signature at the end of this
Agreement.  It will then run for seven
calendar days and expire at the end of the seventh day.)  In order to revoke this Agreement, Executive
must notify First Perry and HNB in writing of his decision to revoke the
Agreement.  Executive must ensure that
First Perry and HNB (via Ms. Lieux, at the address indicated in Paragraph
4 above) receives his written notice of revocation at her office in Lemoyne,
Pennsylvania within the aforementioned Revocation Period.  If the seventh day of the

 

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Revocation Period falls on a Saturday, a
Sunday, or a legal holiday, First Perry and HNB’s receipt of his notice of
revocation by the close of business on the next business day immediately
following such Saturday, Sunday or legal holiday will be sufficient to effect a
timely revocation of this Agreement. 
Provided that the Revocation Period expires without Executive having
revoked this Agreement, this Agreement shall take effect on the next day
following the Revocation Period, and such next day shall constitute the
Effective Date hereof.

 

Executive further agrees
that the consideration described in this Release Agreement shall be in full
satisfaction of any and all claims for payments or benefits, whether expressed
or implied, that Executive may have arising out of his employment relationship,
or his service as an employee or officer of HNB or Halifax, the termination of
such employment relationship.

 

6.             Cooperation and
Non-Disparagement.  Executive
agrees that he will not disparage or make derogatory comments about First
Perry, Marysville, HNB, Halifax, Holding Company or any of their subsidiaries
or affiliates and including their present and former officers, directors,
employees, agents, or attorneys, or their business practices.

 

7.             Confidential
Information; Nonsolicitation and Noncompetition.

 

a.             Executive
agrees that he will not communicate the terms and conditions of this Agreement
or the negotiations preceding it to any persons other than his spouse,
attorneys and tax advisors.

 

b.             Executive
hereby acknowledges that as a result of his employment, he has had access to,
obtained, or developed certain confidential, nonpublic, and/or legally
privileged information, which includes, but is not limited to: information
relating to First Perry’s, Marysville’s, HNB’s, Halifax’s, and Holding Company’s
past, present or future business activities; trade secrets; financial
information; technical systems; new product development; acquisition prospects
and strategies; compliance matters; information contained in personnel files
and medical files; the business operations; the internal structure of First
Perry, Marysville, HNB, Halifax, and Holding Company; the names of and any and
all information, including personal consumer information requiring protection
under federal financial privacy laws, respecting the past, present and
prospective customers or clients of First Perry, Marysville, HNB, Halifax, and
Holding Company; target customers or markets; past, present or future research
done by Corporation respecting the business or operations of First Perry,
Marysville, HNB, Halifax, and Holding Company; financial information; vendor or
provider contracting arrangements; funding sources, services; systems; methods
of operation; sales and marketing information; methods; procedures; referral
sources, referral source information, or referral lists; revenues; costs;
expenses; operating data; reimbursements; contracts; contract forms;
arrangements; plans; prospects; correspondence; memoranda and office records;
electronic and data 

 

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processing
files and records; identities, addresses, telephone numbers, electronic mail
addresses, or other methods of contacting persons who might use or currently
use the services of or who have been customers of First Perry, Marysville, HNB,
Halifax, and Holding Company (“Information”). 
All such Information, marketing methods, supplies, files (closed or
pending), literature, policies and procedure manuals, as well as any
information regarding any and all aspects of First Perry, Marysville, HNB,
Halifax, and Holding Company, or being used by First Perry, Marysville, HNB,
Halifax, and Holding Company, are the sole and confidential property of First
Perry, Marysville, HNB, Halifax, and Holding Company and shall be treated as confidential.  Executive agrees to hold inviolate, not to
disclose, and to keep secret all such Information and will not for any reason
or purpose use, permit to be used, or disclose to any party any Information.

 

c.             Executive hereby
acknowledges and recognizes the highly competitive nature of the business of
Holding Company and accordingly agrees that, for two years from the effective
date as defined in the Consolidation Agreement, Executive shall not, except as
otherwise permitted in writing by the Holding Company (i) be engaged,
directly or indirectly, either for his own account or as agent, consultant,
employee, partner, officer, director, proprietor, investor (except as an
investor owning less than 5% of the stock of a publicly owned company) or
otherwise of any person, firm, corporation or enterprise engaged in the banking
(including bank holding company) or financial services industry in Perry,
Cumberland or Dauphin County (“Non-Competition Area”) or (ii) directly or
indirectly solicit persons or entities who were customers or referral sources
of First Perry, Marysville, HNB, Halifax, and Holding Company or their
subsidiaries to become a customer or referral source of a person or entity
other than First Perry, Marysville, HNB, Halifax, and Holding Company or their
subsidiaries.

 

8.             First Perry, Marysville,
HNB, Halifax, or Holding Company Not Executive’s Advisor.  First Perry, Marysville, HNB, Halifax, and
Holding Company make no representation or warranty, express or implied, to
Executive regarding the treatment of this Release Agreement or any payments
Executive may receive by virtue of or in connection with any provision of this
Release Agreement, under state, federal, or local laws pertaining to income or
other taxation, nor do they  provide to
Executive any advice regarding the financial, investment, or legal desirability
of his entering into this Release Agreement or making any elections or granting
any releases  referred to herein; and Executive
acknowledges that it is and has been his sole and entire responsibility to
explore any such aspects of this Release Agreement with attorneys and/or other
advisors of his own selection, in connection with both his decision to enter
into this Agreement and any decisions or elections which Executive may
subsequently make in relation to any of the subject matter of this Release
Agreement.

 

9.             Agreement
Freely and Voluntarily Entered Into.  Executive warrants and represents that he has
signed this Release Agreement after review and consultation 

 

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with legal counsel of his choice and that he
understands this Release Agreement and signs it freely, knowingly and
voluntarily, without any legal reservation and fully intending to be legally
bound hereby.

 

10.           Executive’s Representations.  In connection with his entering into this
Release Agreement, and as an inducement for First Perry, Marysville, HNB, and
Halifax to enter into this Release Agreement as well as the Consolidation
Agreement, Executive hereby represents the following matters:

 

a.             That Executive has
carefully read and fully understands all of the provisions of this Release
Agreement which sets forth the entire agreement between Executive and First
Perry, Marysville, HNB, and Halifax regarding the termination of Executive’s
employment and Executive’s releasing First Perry, Marysville, HNB, Halifax, and
Holding Company, and that Executive has not relied upon any representations or
statements, written or oral, not set forth in this document; and

 

b.             That Executive has had
such time as Executive deemed necessary to review, consider, and deliberate as
to the terms of this Release Agreement.

 

11.           Severability. 
Should any provision(s) of this Agreement be determined, in a
proceeding to enforce or interpret this Agreement, to be invalid or
unenforceable, then, provided that the provision(s) deemed to be invalid
or unenforceable do not constitute all or substantially all of the undertakings
by either Executive or First Perry, Marysville, HNB, Halifax, and the Holding
Company, the remainder of this Release Agreement shall continue in full force
and effect.

 

12.           Notices.  Unless otherwise provided in this Release
Agreement, any notice required or permitted to be given under this Release
Agreement shall be deemed properly given if in writing and if mailed by
registered or certified mail, postage prepaid with return receipt requested, to
Executive’s residence, in the case of notices to Executive, and to the
principal executive offices of First Perry, Marysville, HNB, and Halifax in the
case of notices to First Perry, Marysville, HNB, and Halifax.

 

13.           Choice of Law. 
This Agreement shall be governed by, construed under and enforced
pursuant to the laws of the Commonwealth of Pennsylvania.

 

14.           Complete Written
Settlement.  This Release Agreement
expresses a full and complete settlement of all disputes between Executive and
First Perry, Marysville, HNB, Halifax, and the Holding Company and their
subsidiaries.  Executive agrees that
there are absolutely no agreements or reservations relating to termination of
Executive’s employment and Executive’s release of First Perry, Marysville, HNB,
Halifax, and the 

 

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Holding
Company that are not clearly expressed in writing herein.  This Agreement may not be modified except in
writing signed by all parties hereto.

 

15.           Binding on
Successors and Assigns.  This
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective heirs, successors and assigns.

 

16.           Counterparts.  This Agreement may be executed in multiple
counterparts, and shall be fully valid, legally binding and enforceable whether
executed in a single document or in such counterparts.

 

17.           Termination.  This Agreement shall terminate and be null
and void upon a termination of the Consolidation Agreement in accordance with
its terms.

 

IN WITNESS WHEREOF, the parties have executed
this Agreement as of the date first written above.

 

	
  ATTEST:

  	
   

  	
  HNB
  BANCORP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  Robert M. Garst

  	
   

  	
  By:

  	
  /s/
  Kirk D. Fox

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HALIFAX
  NATIONAL BANK

  
	
   

  	
   

  	
   

  
	
  /s/
  Robert M. Garst

  	
   

  	
  By:

  	
  /s/
  Kirk D. Fox

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FIRST
  PERRY BANCORP, INC.

  
	
   

  	
   

  	
   

  
	
  /s/
  Dorothy A. Taylor

  	
   

  	
  By:

  	
  /s/
  Robert M. Garst

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE
  FIRST NATIONAL BANK OF MARYSVILLE

  
	
   

  	
   

  	
   

  
	
  /s/
  Dorothy A. Taylor

  	
   

  	
  By:

  	
  /s/
  Robert M. Garst

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
  /s/
  Robert M. Garst

  	
   

  	
  /s/
  William Hummel

  
	
   

  	
   

  	
  William
  Hummel

  

 

7EXHIBIT
10.7

 

RIVERVIEW NATIONAL BANK

DIRECTOR DEFERRED FEE AGREEMENT

 

THIS
AGREEMENT is made this 31st day of December, 2008, by
RIVERVIEW NATIONAL BANK, a national bank located in Marysville, Pennsylvania
(the “Bank”), and
                                                  ,
(the “Director”).

 

INTRODUCTION

 

To
encourage the Director to remain a member of the Bank’s Board of Directors, the
Bank is willing to provide to the Director a deferred fee opportunity. The Bank
will pay the benefits from its general assets.

 

AGREEMENT

 

The
Director and the Bank agree as follows:

 

Article 1

Definitions

 

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

 

1.1.1        “Change
in Control” means a change
in the ownership or effective control of the Corporation or the Bank as
described in Section 409A(a)(2)(A)(v) of the Code.

 

Notwithstanding anything else to the contrary set
forth in this Agreement, if (i) an agreement is executed by the
Corporation or the Bank providing for any of the transactions or events
constituting a Change in Control as defined herein, and the agreement
subsequently expires or is terminated without the transaction or event being
consummated, and (ii) Director’s service did not terminate during the
period after the agreement and prior to such expiration or termination, for
purposes of this agreement it shall be as though such agreement was never
executed and no Change in Control event shall be deemed to have occurred as a
result of the execution of such Agreement.

 

1.1.2        “Code” means the
Internal Revenue Code of 1986, as amended, and the regulations promulgated
thereunder.

 

1.1.3        “Corporation” means
Riverview Financial Corporation.

 

1

 

1.1.4        “Disability” means the
Director’s inability to perform substantially all normal duties of a director,
provided such disability complies with the definition provided under Code Section 
409A. As a condition to receiving any benefits, the Bank may require the Director
to submit to such physical or mental evaluations and tests as the Board of
Directors deems appropriate.

 

1.1.5        “Election Form” means the Form attached
as Exhibit A.

 

1.1.6        “Fees” means the
total amount earned by the Director for serving on the Bank’s Board.

 

1.1.7        “Normal Benefit Age” means the
benefit distribution age specified by the Director in Exhibit A.

 

1.1.8        “Plan Year” means each
twelve (12) month period commencing with the month deferrals commence under
this Agreement.

 

1.1.9        “Termination
of Service” means the Director’s ceasing to be a member of the
Bank’s Board of Directors for any reason other than death, provided such
termination of service complies with the definition of termination of service
under Code Section 409A.

 

Article 2

Deferral Election

 

2.1           Initial Election.  The Director shall make an initial deferral
election under this Agreement by filing with the Bank a signed Election Form within
thirty (30) days after the date of this Agreement. The Election Form shall
set forth the amount of Fees to be deferred, provided such deferral opportunity
shall be limited to Fees earned during the ten-year period ending December 31,
2018 unless an extension is approved in writing by the Bank. The Election Form shall
be effective to defer only Fees earned after the date the Election Form is
received by the Bank.

 

2.2           Election Changes.  The Director may modify the amount of Fees to
be deferred annually by filing a new Election Form with the Bank. The
modified deferral shall not be effective until the calendar year following the
year in which the subsequent Election Form is received by the Bank. Any
changes to the form of benefit payment must be in accordance with Exhibit A.

 

Article 3

Deferral Account

 

3.1           Establishing and Crediting.  The Bank shall establish a Deferral Account
on its books for the Director, and shall credit to the Deferral Account the
following amounts:

 

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3.1.1        Deferrals.  The fees deferred by the Director as of the
time the Fees would have otherwise been paid to the Director.

 

3.1.2        Interest.  Interest at an annual rate of 70% of
R.O.E.  R.O.E. is to be calculated by a
daily quarterly average.

 

3.2           Statement of Accounts.  The Bank shall provide to the Director,
within one hundred twenty (120) days after each Plan Year, a statement setting
forth the Deferral Account balance.

 

3.3           Accounting Device Only.  The Deferral Account is solely a device for
measuring amounts to be paid under this Agreement. The Deferral Account is not
a trust fund of any kind. The Director is a general unsecured creditor of the
Bank for the payment of benefits. The benefits represent the mere Bank promise
to pay such benefits. The Director’s rights are not subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance,
attachment or garnishment by the Director’s creditors.

 

Article 4

Lifetime Benefits

 

4.1           Normal Benefit Age.  If the Director terminates service as a
Director on or after Normal Benefit Age, the Bank shall pay to the Director the
benefit described in this Section 4.1 in lieu of any other benefit under
this Agreement.

 

4.1.1        Amount of Benefit.  The benefit under this Section 4.1 is
the Deferral Account balance at the date specified in Exhibit A.

 

4.1.2        Payment of Benefit.  The Bank shall pay the benefit to the
Director in the form specified in Exhibit A. If installment payments are
elected, the Bank shall continue to credit interest at an annual rate as
defined in Section 3.1.2 above, on the undistributed account balance
during any applicable installment period.

 

4.2           Early Termination Benefit.  If the Director terminates service as a
Director before the Normal Benefit Age for reasons other than death, disability
or following a Change in Control, the Bank shall pay to the Director the
benefit described in this Section 4.2 in lieu of any other benefit under
this Agreement.

 

4.2.1        Amount of Benefit.  The Benefit under this Section 4.2 is
the Deferral Account balance at the Director’s Termination of Service.

 

4.2.2        Payment of Benefit.  The Bank shall pay the benefit to the Director
in the form specified in Exhibit A. If installment payments are elected,
the Bank shall continue to credit interest at an annual rate as 

 

3

 

defined
in Section 3.1.2 above, on the undistributed account balance during any
applicable installment period.

 

4.3           Disability Benefit.  Upon Termination of Service for disability
prior to the Normal Benefit Age, the Bank shall pay to the Director the benefit
described in this Section 4.3 in lieu of any other benefit under this
Agreement.

 

4.3.1        Amount of Benefit.  The benefit under this Section 4.3 is
the Deferral Account balance at the date specified in Exhibit A. If
applicable, the Bank shall continue to credit interest to the Deferral Account
balance at a rate as defined in Section 3.1.2 above, during the period
from Termination of Service until payments commence.

 

4.3.2        Payment of Benefit.  The Bank shall pay the benefit to the
Director in the form specified in Exhibit A. If installment payments are
elected, the Bank shall continue to credit interest at an annual rate as
defined in Section 3.1.2 above, on the undistributed account balance
during any applicable installment period.

 

4.4           Change of Control Benefit.  If the Director is in the active service of
the Bank when the change occurs, the Bank shall pay to the Director the benefit
described in this Section 4.4 in lieu of any other benefit under this
Agreement.

 

4.4.1        Amount of Benefit.  The benefit under this Section 4.4 is
the Deferral Account balance at the date specified in Exhibit A. If
applicable, the Bank shall continue to credit interest to the Deferral Account
balance at a rate as defined in Section 3.1.2 above, during the period
from Termination of Service until payments commence.

 

4.4.2        Payment of Benefit.  The Bank shall pay the benefit to the
Director in the form specified in Exhibit A. If installment payments are
elected, the Bank shall continue to credit interest at an annual rate as
defined in Section 3.1.2 above, on the undistributed account balance
during any applicable installment period.

 

4.5           Hardship Distribution.  If an unforeseeable financial emergency
arising from the death of a family member, divorce, sickness, injury,
catastrophe or similar event outside the control of the Director occurs,
provided such emergency qualifies as an unforeseeable emergency under Code Section 409A,
the Director may petition the Board for early payout of his Deferral Account.
If the Board determines that the Director’s request constitutes an
unforeseeable financial emergency as provided under Code 409A, the Bank shall
distribute to the Director all or a portion of the Deferral Account balance as
determined by the Bank, but in no event shall the distribution be greater than
is necessary to relieve the financial hardship.

 

4

 

Article 5

Death Benefits

 

5.1           Death Prior to Commencement of
Benefit Payments.  If the
Director dies prior to commencement of benefit payments, the Bank shall pay to
the Director’s beneficiary the benefit described in this Section 5.1 in
lieu of any other benefit under this Agreement.

 

5.1.1        Amount of Benefit.  The benefit amount under Section 5.1 is
the Deferral Account balance.

 

5.1.2        Payment of Benefit.  The Bank shall pay the benefit to the beneficiary
in the form specified in Exhibit A, with payment made or commencing on the
first day of January following the Director’s death. If installment
payments are elected, the Bank shall continue to credit interest at an annual
rate as defined in Section 3.1.2 above, compounded monthly, on the
undistributed account balance during any applicable installment period.

 

5.2           Death During Benefit Period.  If the Director dies after benefit payments
have commenced under this Agreement but before receiving all such payments, the
Bank shall pay the remaining benefits to the Director’s beneficiary at the same
time and in the same amounts they would have been paid to the Director had the
Director survived.

 

Article 6

Beneficiaries

 

6.1           Beneficiary Designations.  The Director shall designate a beneficiary by
filing a written designation with the Bank. The Director may revoke or modify
the designation at any time by filing a new designation. However, designations
will only be effective if signed by the Director and accepted by the Bank
during the Director’s lifetime. The Director’s beneficiary designation shall be
deemed automatically revoked if the beneficiary predeceases the Director, or if
the Director names a spouse as beneficiary and the marriage is subsequently
dissolved. If the Director dies without a valid beneficiary designation, all
payments shall be made to the Director’s estate.

 

6.2           Facility of Payment.  If a benefit is payable to a minor, to a
person declared incompetent, or to a person incapable of handling the
disposition of his or her property, the Bank may pay such benefit to the
guardian, legal representative or person having the care or custody of such
minor, incompetent person or incapable person. The Bank may require proof of
incompetence, minority or guardianship as it may deem appropriate prior to
distribution of the benefit. Such distribution shall completely discharge the
Bank from all liability with respect to such benefit.

 

5

 

Article 7

General Limitations

 

Notwithstanding
any provision of this Agreement to the contrary, the Bank shall not pay any
benefit under this Agreement that is attributable to the interest earned on
such contributions:

 

7.1           Termination for Cause.  If the Bank terminates the Director’s service
for:

 

7.2.1        Gross negligence or gross
neglect of duties;

 

7.2.2        Commission of a felony or of
a gross misdemeanor involving moral turpitude; or

 

7.2.3        Fraud, disloyalty,
dishonesty or willful violation of any law or significant Bank policy committed
in connection with the Director’s service and resulting in an adverse effect on
the Bank.

 

7.2           Removal.  If the Director is subject to a final removal
or prohibition order issued by an appropriate federal banking agency pursuant
to Section 8(e) of the Federal Deposit Insurance Act.

 

7.3           Suicide.  If the Director commits suicide within two
years after the date of this Agreement, or if the Director has made any
material misstatement of fact on any application for life insurance purchased
by the Bank.

 

Article 8

Claims and Review Procedures

 

8.1           Claims Procedure.  The Bank shall notify any person or entity
that makes a claim against the Agreement (the “Claimant”) in writing, within
ninety (90) days of Claimant’s written application for benefits, of Claimant’s
eligibility or ineligibility for benefits under the Agreement. If the Bank
determines that the Claimant is not eligible for benefits or full benefits, the
notice shall set forth (l) the specific reasons for such denial, (2) a
specific reference to the provisions of the Agreement on which the denial is
based, (3) a description of any additional information or material
necessary for the Claimant to perfect Claimant’s claim, and a description of
why it is needed, and (4) an explanation of the Agreement’s claims review
procedure and other appropriate information as to the steps to be taken if the
Claimant wishes to have the claim reviewed. If the Bank determines that there
are special circumstances requiring additional time to make a decision, the
Bank shall notify the Claimant of the special circumstances and the date by 

 

6

 

which
a decision is expected to be made, and may extend the time for up to an additional
ninety-day period.

 

8.2           Review Procedure.  If the Claimant is determined by the Bank not
to be eligible for benefits, or if the claimant believes that claimant is
entitled to greater or different benefits, the Claimant shall have the
opportunity to have such claim reviewed by the Bank by filing a petition for
review with the Bank within sixty (60) days after receipt of the notice issued
by the Bank. Said petition shall state the specific reasons which the Claimant
believes entitle Claimant to benefits or to greater or different benefits.
Within sixty (60) days after receipt by the Bank of the petition, the Bank
shall afford the claimant (and counsel, if any) an opportunity to present
Claimant’s position to the Bank orally or in writing, and the Claimant (and
counsel) shall have the right to review the pertinent documents. The Bank shall
notify the Claimant of its decision in writing within the sixty-day period,
stating specifically the basis of its decision, written in a manner calculated
to be understood by the Claimant and the specific provisions of the Agreement
on which the decision is based. If, because of the need for a hearing, the
sixty-day period is not sufficient, the decision may be deferred for up to
another sixty-day period at the election of the Bank, but notice of this
deferral shall be given to the Claimant.

 

Article 9

Amendments and Termination

 

This
Agreement may be amended or terminated only by a written agreement signed by
the Bank and the Director, except as specified in Article 7.

 

Article 10

Miscellaneous

 

10.1         Binding Effect.  This Agreement shall bind the Director and
the Bank, and their beneficiaries, survivors, executors, successors,
administrators and transferees.

 

10.2         No Guarantee of Service.  This Agreement is not a contract for
services. It does not give the Director the right to remain a director of the
Bank, nor does it interfere with the shareholders’ rights to replace the
Director. It also does not require the Director to remain a director nor
interfere with the Director’s right to terminate service at any time.

 

10.3         Non-Transferability.  Benefits under this Agreement cannot be sold,
transferred, assigned, pledged, attached or encumbered in any manner.

 

10.4         Tax Withholding. The Bank
shall withhold any taxes that are required to be withheld from the benefits
provided under this Agreement.

 

10.5         Applicable Law. The Agreement
and all rights hereunder shall be governed by the laws of the Commonwealth of
Pennsylvania, except to the extent preempted by the laws of the United States
of America. This Agreement shall also be

 

7

 

interpreted
as is minimally required to qualify any payment hereunder as not triggering any
penalty on the Director pursuant to Code Section 409A and the regulations
promulgated thereunder.

 

10.6         Unfunded Arrangement.  The Director and beneficiary are general
unsecured creditors of the Bank for the payment of benefits under this
Agreement. The benefits represent the mere promise by the Bank to pay such
benefits. The rights to benefits are not subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance, attachment or
garnishment by creditors. Any insurance on the Director’s life is a general
asset of the Bank to which the Director and beneficiary have no preferred or
secured claim.

 

10.7         Recovery of Estate Taxes.  If the Director’s gross estate for federal
estate tax purposes includes any amount determined by reference to and on
account of this Agreement, and if the beneficiary is other than the Director’s
estate, then the Director’s estate shall be entitled to recover from the
beneficiary receiving such benefit under the terms of the Agreement, an amount
by which the total estate tax due by the Director’s estate, exceeds the total
estate tax which would have been payable if the value of such benefit had not
been included in the Director’s gross estate. If there is more than one person
receiving such benefit, the right of recovery shall be against each such
person. In the event the beneficiary has a liability hereunder, the beneficiary
may petition the Bank for a lump sum payment in an amount not to exceed the
beneficiary’s liability hereunder.

 

10.8         Entire Agreement.  This Agreement constitutes the entire
agreement between the Bank and the Director as to the subject matter hereof. No
rights are granted to the Director by virtue of this Agreement other than those
specifically set forth herein.

 

10.9         Reorganization. The Bank
shall not merge or consolidate into or with another company, or reorganize, or
sell substantially all of its assets to another company, firm or person unless
such succeeding or continuing company, firm or person agrees to assume and
discharge the obligations of the Bank.

 

10.10       Administration. The Bank
shall have powers which are necessary to administer this Agreement, including
but not limited to:

 

10.10.1    Interpreting
the provisions of this Agreement;

 

10.10.2    Establishing and revising
the method of accounting for the Agreement.

 

10.10.3    Maintaining a record of
benefit payments; and

 

10.10.4    Establishing rules and
prescribing any forms necessary or desirable to administer the Agreement.

 

8

 

10.11       Named Fiduciary.  The Bank shall be the named fiduciary and
plan administrator under this Agreement. The named fiduciary may delegate to
others certain aspects of the management and operation responsibilities of the
plan including the service of advisors and the delegation of ministerial duties
to qualified individuals.

 

IN
WITNESS WHEREOF, the Director and a duly authorized Bank officer have signed
this Agreement.

 

	
   

  	
   

  	
  BANK:

  
	
  ATTEST:

  	
   

  	
  RIVERVIEW
  NATIONAL BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date

  	
   

  

 

 

By
execution hereof, Riverview Financial Corporation, consents to and agrees to be
bound by the terms and conditions of this Agreement.

 

 

	
  ATTEST:

  	
   

  	
  CORPORATION:

  
	
   

  	
   

  	
  RIVERVIEW
  FINANCIAL CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
  DIRECTOR:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

9

 

EXHIBIT A

 

RIVERVIEW NATIONAL BANK

DIRECTOR DEFERRED FEE AGREEMENT

 

Election Form

 

Deferral
Election (Initial and Complete One):

 

	
  o

  	
   

  	
  I
  elect to defer         % of my
  fees for          months,
  increasing or decreasing to         %
  commencing in                                      .

  
	
   

  	
   

  	
  (mo./yr.)

  
	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  I
  elect to defer $               
  per month for          months,
  increasing or decreasing to $                  
  per month commencing in                                                          .

  
	
   

  	
   

  	
   

  	
  (mo./yr.)

  

 

Benefit
Age:

 

I
elect a Normal Benefit Age of             .

 

Timing
of Payout:

 

If
I terminate service after Normal Benefit Age, I elect to have my benefits
distributed commencing within 30 days of (Initial One).

 

	
  o

  	
   

  	
  Normal
  Benefit Age

  
	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  Termination
  of Service

  

 

If
I terminate service before Normal Benefit Age due to Disability, I elect to
have my benefits distributed commencing within 30 days of (Initial One):

 

	
  o

  	
   

  	
  Normal
  Benefit Age

  
	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  Termination
  of Service

  

 

10

 

If
a Change in Control occurs prior to Normal Benefit Age, I elect to have my
benefits distributed commencing within 30 days of (Initial One):

 

	
  o

  	
   

  	
  Normal
  Benefit Age

  
	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  Termination
  of Service

  
	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  The
  date the Change in Control occurs

  

 

Form of
Payment:

 

I
elect to have my benefits paid in the following form (initial (a) or (b) for
each category):

 

	
  Section

  	
   

  	
  Triggering

  	
   

  	
   

  	
   

  	
  Annuitized
  over

  
	
  Reference

  	
   

  	
  Event

  	
   

  	
  Lump Sum

  	
   

  	
  120
  Months

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.1.2

  	
   

  	
  Normal
  Benefit Age

  	
   

  	
  (a)      

  	
   

  	
  (b)      

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.2.2

  	
   

  	
  Early
  Termination

  	
   

  	
  (a)      

  	
   

  	
  (b)      

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.3.2

  	
   

  	
  Disability

  	
   

  	
  (a)      

  	
   

  	
  (b)      

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.4.2

  	
   

  	
  Change
  in Control

  	
   

  	
  (a)      

  	
   

  	
  (b)      

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.1.2

  	
   

  	
  Death

  	
   

  	
  (a)      

  	
   

  	
  (b)      

  

 

I
understand that I may change the form of benefit elected provided such change
is made at least 12 months prior to the date the payment becomes due.

 

	
  Signature:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  
					

 

Accepted
by the Bank this          day of
                              ,
20    .

 

RIVERVIEW
NATIONAL BANK

 

	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
				

 

11

 

RIVERVIEW
NATIONAL BANK

 

DIRECTOR DEFERRED FEE AGREEMENT

 

Beneficiary Designation

 

I
designate the following as beneficiary of benefits under the Director Deferred
Fee Agreement payable following my death:

 

Primary
Beneficiary:

 

	
  Name:

  	
   

  	
   

  	
  Relationship:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Contingent
  Beneficiary:  (to receive the benefits if there is no
  surviving Primary Beneficiary or should the Primary Beneficiary die before
  receiving all benefit payments under Article 5)

  
	
   

  
	
  Name:

  	
   

  	
   

  	
  Relationship:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  
						

 

Note:      To name a trust as
beneficiary, please provide the name of the trustee(s) and the exact
name and date of the trust agreement.

 

I
understand that I may change these beneficiary designations by filing a new
written designation with the Bank. I further understand that the designations
will be automatically revoked if the beneficiary predeceases me, or, if I have
named my spouse as beneficiary, in the event of the dissolution of our
marriage.

 

	
  Signature:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
						

 

Accepted
by the Bank this             
day of                                             ,
20    .

 

	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
						

 

12

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