Document:

EXHIBIT 10.4

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

THIS
AGREEMENT is made as of the 31st day of December 2008,
among Riverview Financial Corporation (“Corporation”), with principal offices
at 3rd and Market Streets Halifax, PA 17032,
Riverview National Bank (“Bank”) with principal offices at 101 Lincoln Street,
Marysville, Pennsylvania, 17053, and PAUL B. ZWALLY, a Pennsylvania resident
residing at 4439 Augusta Drive, Harrisburg, Pennsylvania 17112 (hereinafter
referred to as “EXECUTIVE”).

 

WITNESSETH:

 

WHEREAS,
The First National Bank of Marysville (“Marysville”) is the wholly owned
subsidiary of First Perry Bancorp, Inc. (“First Perry”);

 

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

 

WHEREAS,
the Executive is Senior Vice President, Chief Loan Officer;

 

WHEREAS,
Executive entered into an Executive Employment Agreement with Marysville on or
about June 18, 2008;

 

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

 

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

 

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

 

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

 

I.  TERM OF EMPLOYMENT

 

1.             The Bank hereby employs the
Executive as Senior Vice President, Chief Loan Officer as set forth below, and
Executive hereby accepts this employment and agrees to render such services to
the Bank on the terms and conditions as set forth in this Agreement.  This Agreement shall be for a one (1) year
period (the “Employment Period”) beginning on the Effective Date of the Consolidation
(the “Initial Term”).  The 

 

1

 

Employment
Period shall be extended automatically for one (1) additional year on the
first anniversary date of this agreement (“Renewal Date”), and then on each anniversary
of the Renewal Date of this Agreement thereafter, unless Bank or Executive
gives contrary written notice to the other sixty (60) days before the
anniversary of the Renewal Date.  If
notice had not been previously given as provided in this Section I.1, the
Employment Period shall continue for a one (1) year period
thereafter.  References in the Agreement
to “Employment Period” shall refer to the Initial Term of this Agreement and
any extensions to the Initial Term.  It
is the intention of the parties that this Agreement be “Evergreen” unless (i) either
party gives written notice to the other party of his or its intention not to
renew this Agreement as provided above or (ii) this Agreement is
terminated pursuant to Section VI of this Agreement.

 

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

 

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

 

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

 

II.  COMPETITIVE ACTIVITIES

 

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

 

III.  COMPENSATION

 

The
Bank will compensate Executive for Executive’s services during the term of the
Agreement at an Annual Base Salary of One Hundred Eighteen Thousand Four Hundred
and Fifty Dollars ($118,450.00) per year, payable at the same times as salaries
are payable to other executive employees. 
Bank may from time to time increase Executive’s Annual Base Salary, and
any and all such increases shall be deemed to constitute amendments to this Section to
reflect the increased amounts.

 

2

 

IV.  PARTICIPATION IN RETIREMENT
AND MEDICAL PLANS,

LIFE INSURANCE AND DISABILITY

 

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

 

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

 

3.             For purposes of this Agreement, “Disability”
means the Executive is unable to engage in any substantial gainful activity by
reason of any medically determinable physical or mental impairment that can be
expected to result in death or can be expected to last for a continuous period
of not less than twelve (12) months. The Executive will be deemed disabled if
the Social Security Administration has determined that he is disabled or if a
carrier of any group disability insurance policy provided by the Bank or made
available by the Bank to its employees and covering the Executive determines
that he is disabled provided that the policy’s definition of disability
complies with the definition of disability under Internal Revenue Code (“Code”)
Section 409A.

 

V.  ADDITIONAL COMPENSATION AND
BENEFITS

 

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

 

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

 

3

 

3.             During the term of this Agreement, Executive
shall be entitled to receive prompt reimbursement for his monthly membership
dues to a country club of his choice in the approximate annual amount of
$5,000.

 

VI. TERMINATION

 

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

 

2.             Executive may terminate his
employment upon thirty (30) days prior written notice to the Board of
Directors.

 

3.             (a)  If a change in control
(hereinafter referred to as “CIC”) of the Bank shall occur, as defined in VI.3
(b), and without Executive’s express written consent, thereafter, there shall
be:

 

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

 

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

 

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

 

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

 

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

 

then
at the option of the Executive, exercisable by Executive within twelve (12)
months of the Change in Control or occurrence of the foregoing events,
Executive may resign from employment with Bank ( or in the case of an
involuntary termination), give notice (“Notice of Termination”) to collect
benefits under this Agreement by delivering written notice to Bank and the
provisions of Section VI.4 of this Agreement shall apply.

 

4

 

(b)  For purposes of this Agreement, the definition of a CIC of
the Bank shall mean

 

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

 

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

 

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

 

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

 

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

 

If
a “Change in Control” (as defined in Section VI.3.(b) of this
Agreement) has also occurred, Bank shall pay Executive a lump sum amount equal
to 1.0  times Executive’s Annual Compensation
minus applicable taxes and withholdings. For purposes of this paragraph, Annual
Compensation shall be defined as Executive’s Annual Base Salary plus the
highest bonus received within the previous two years plus the amount which Bank
pays for employee benefits for Executive for a one year period.   In addition, Bank shall reimburse Executive
for his and his family’s COBRA premiums until the earlier of (a) Executive
is no longer eligible for COBRA benefits or (b) one year.

 

5

 

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

 

5.             If Executive’s employment with Bank
is terminated by Bank for any reason other than Cause as defined in Section VI.8,
then Executive shall be entitled to an amount equal to a lump sum amount equal
to 1.0  times Executive’s Annual Compensation
minus applicable taxes and withholdings. For purposes of this paragraph, Annual
Compensation shall be defined as Executive’s Annual Base Salary plus the
highest bonus received within the previous two years plus the amount which Bank
pays for employee benefits for Executive for a one year period.   In addition, Bank shall reimburse Executive
for his and his family’s COBRA premiums until the earlier of (a) Executive
is no longer eligible for COBRA benefits or (b) one year.  However, in the event the payment described
herein, when added to all other amounts or benefits provided to or on behalf of
the Executive in connection with his termination of employment, would result in
the imposition of an excise tax under Section 4999 of the Code, Bank will
pay to Executive an additional cash payment (“Gross-up Payment”) in an amount
such that the after-tax proceeds of such Gross-up Payment (including any income
tax or Excise Tax on such Gross-up Payment) will be equal to the amount of the
Excise Tax.

 

6.             If Executive’s employment with Bank
is terminated pursuant to the nonrenewal provisions of Section I.1 of this
Agreement, then Executive shall be entitled to an amount equal to a lump sum
amount equal to six (6) months of Executive’s Annual Compensation as
defined in Section VI.5 minus applicable taxes and withholdings.

 

7.             Any termination of Executive’s
employment by the Bank or by the Executive shall be communicated by written
notice of termination to the other party by means of United States certified
mail return receipt requested pursuant to Section VII.3 of this Agreement.
For purposes of this Agreement, a “notice of termination” shall mean a dated
notice which shall (i) indicate the specific termination provision in the
Agreement relied upon; (ii) set forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of Executive’s
employment under the provision so indicated; and (iii) specify a date of
termination, which shall not be less than thirty nor more than ninety days
after such notice of termination.

 

8.             Executive shall not be required to
mitigate the amount of any payment period provided for in Sections VI.4 or VI.5
if he is seeking other employment.

 

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

 

6

 

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

(b) 
the Executive’s failure to perform or to comply fully with any lawful directive
of the Bank’s Board of Directors or of any duly constituted committee thereof;

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

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

 

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

 

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

 

VII MISCELLANEOUS

 

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

 

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

 

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

 

4.             This Agreement amends and
supersedes all previous employment agreements between First Perry and
Marysville and Executive.

 

7

 

VIII. SUCCESSORS, ETC.

 

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

 

2.             This Agreement is personal to each
of the parties and neither party may assign or delegate any of its rights or
obligations under this Agreement without the prior written consent of the other
party, except this provision will not apply to the Bank or its parent in the
event of a change in control.

 

IX APPLICABLE LAW.

 

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

 

X. SEVERABILITY

 

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

 

XI ARBITRATION

 

Each
party agrees that all disputes, disagreements and questions of interpretation
concerning this Agreement (except the question of Executive’s disability which
is governed in Section IV), are to be submitted for resolution, in
Marysville, Pennsylvania, to the American Arbitration Association (the “Association”)
in accordance with the Association’s National Rules for the Resolution of
Employment Disputes or other applicable rules then in effect (“Rules”).  Bank or Executive may initiate an arbitration
proceeding at any time by giving notice to the other in accordance with the
Rules.  Bank and Executive may, as a matter
of right, mutually agree on the appointment of a particular arbitrator from the
Association’s pool.  The arbitrator shall
not be bound by the rules of evidence and procedure of the courts of the
Commonwealth of Pennsylvania but

 

8

 

shall
be bound by the substantive law applicable to this Agreement.  The decision of the arbitrator, absent fraud,
duress, incompetence or gross and obvious error of fact, shall be final and
binding upon the parties and shall be enforceable in courts of proper
jurisdiction.  Following written notice
of a request for arbitration, Bank and Executive shall be entitled to an
injunction restraining all further proceedings in any pending or subsequently
filed litigation concerning this Agreement.

 

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

 

	
  Attest:

  	
   

  	
  Riverview
  Bancorp, Inc.

  
	
   

  	
   

  	
   

  
	
  /s/
  David A. Troutman

  	
   

  	
  By:

  	
  /s/
  David W. Hoover

  
	
   

  	
   

  	
   

  
	
  Witness:

  	
   

  	
  Riverview National Bank

  
	
   

  	
   

  	
   

  
	
  /s/
  David A. Troutman

  	
   

  	
  By:

  	
  /s/
  Robert M. Garst

  
	
   

  	
   

  	
   

  
	
  Witness:

  	
   

  	
  Executive

  
	
   

  	
   

  	
   

  
	
  /s/
  Robert M. Garst

  	
   

  	
  /s/
  Paul B. Zwally

  
	
  Witness:

  	
   

  	
  Paul B. Zwally

  

 

9EXHIBIT 10.5

 

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT is made as of the 18th day of June 2008, among First Perry
Bancorp, Inc. (“First Perry”), with principal offices at 101 Lincoln
Street, Marysville, Pennsylvania, 17053, HNB Bancorp, Inc. (“HNB”), with
principal offices at 3rd and Market Streets Halifax, PA 17032, and
William Hummel (“Executive”).

 

WITNESSETH:

 

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

 

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

 

WHEREAS,  as inducement
for First Perry to enter into the Consolidation Agreement, Executive has agreed
to be employed by the Holding Company for a four year period commencing on the
Effective Date (as defined in the Consolidation Agreement) and terminating four
years later;

 

WHEREAS, Executive desires to serve the Holding Company
under the terms and conditions set forth herein;

 

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.                                       Relationship.  On the effective date of this Agreement, the
Holding Company engages Executive and Executive hereby agrees to serve the
Holding Company, under the terms and conditions set forth in this Agreement.

 

2 .                                    Duties
of Executive.  Executive shall perform and discharge well
and faithfully such duties as necessary to assist the Holding Company with the
consolidation of First Perry and HNB and perform such other reasonable duties
and meet such reasonable performance goals as assigned to him by the Chief
Executive Officer of the Holding Company. 
The Chief Executive Officer of the Holding Company shall develop
reasonable performance goals for Executive which will be provided to the
Executive on at least an annual basis.

 

1

 

3.                                       Term
of Agreement.  This Agreement
shall commence on the Effective Date (as defined in the Consolidation
Agreement) and shall expire four (4) years later (“Term”).  The Effective Date of this Agreement shall be
the Effective Date as defined in the Consolidation Agreement.

 

4.                                       Compensation.  For his services under this
Agreement, the Holding Company shall pay Executive an annual salary equal to
$40,000, minus applicable withholdings and deductions, payable at the same
times as salaries are payable to other executive employees.

 

5.                                       Benefits.

 

(a)  The Holding Company shall arrange for
Executive to receive health insurance coverage for the Term of this Agreement.

 

(b) 
The Holding Company shall also provide Executive with a Holding Company or bank
owned vehicle for his use during the term of this Agreement.

 

6.                                       Termination
of Employment.

 

(a) 
The Holding Company may terminate Executive’s employment at any time for
Cause.  Cause is defined as failing to
meet the mutually agreed upon goals and standards set by the Holding Company or
his removal from office or permanently prohibited from participating in the
conduct of the Holding Company’s affairs by a final order issued by an
appropriate federal banking agency pursuant to Section 8(e) or 8(g) of
the Federal Deposit Insurance Act or by the Comptroller of the Currency
pursuant to national law. In the event Executive’s employment is terminated for
Cause, all obligations of the Holding Company shall terminate.

 

(b) 
In the event Executive’s employment is terminated by the Holding Company for
any reason other than Cause prior to the expiration of this Agreement, then
Executive shall be entitled to his annual salary for the remainder of the Term
of this Agreement.

 

7.                                       Unauthorized
Disclosure.  During the Term, or at any later time, the
Executive shall not, without the written consent of the President or Chief
Executive Officer of the Holding Company or a person authorized thereby,
knowingly disclose to any person, other than an employee of the Holding Company
or a person to whom disclosure is reasonably necessary or appropriate in
connection with the performance by the Executive of his duties, any material
confidential information obtained while performing services for the Holding
Company with respect to any of the Holding Company’s services, products,
improvements, formulas, designs or styles, processes, customers, methods of
business or any business practices the disclosure of which could be or will be
damaging to the Holding Company; provided, however, that confidential
information shall not include any 

 

2

 

information
known generally to the public (other than as a result of unauthorized
disclosure by the Executive or any person with the assistance, consent or
direction of the Executive) or any information of a type not otherwise
considered confidential by persons engaged in the same business or a business
similar to that conducted by the Holding Company; and provided further that
nothing contained herein shall prevent Executive, with or without the consent
referenced above, from participating in or disclosing documents or information
in connection with any judicial or administrative investigation, inquiry or
proceeding to the extent that such participation or disclosure is required
under applicable law.

 

8.                                       Work Made for Hire.  Any work performed by the
Executive under this Agreement should be considered a “Work Made for Hire” as
the phrase is defined by the U.S. patent laws and shall be owned by and for the
express benefit of the Holding Company and their subsidiaries and
affiliates.  In the event it should be
established that such work does not qualify as a Work Made for Hire, Executive
agrees to and does hereby assign to the Holding Company, and its affiliates and
subsidiaries, all of his rights, title, and/or interest in such work product,
including, but not limited to, all copyrights, patents, trademarks, and
propriety rights.

 

9.                                       Return of Company Property and Documents.  Executive agrees that, at the time of
termination of this Agreement, regardless of the reason for termination, he
will deliver to the Holding Company and their subsidiaries and affiliates, any
and all company property, including, but not limited to, keys, security codes
or passes, mobile telephones, records, data, notes, reports, proposals, lists,
correspondence, specifications, drawings, blueprints, sketches, software
programs, equipment, other documents or property, or reproductions of any of
the aforementioned items developed or obtained by the Executive during the
course of this Agreement.

 

10.                                 Notices.  Except as otherwise provided in this
Agreement, any notice required or permitted to be given under this 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 the Holding Company, in the case of notices to the Holding Company.

 

11.                                 Waiver.  No provision of this Agreement may be
modified, waived or discharged unless such waiver, modification or discharge is
agreed to in writing and signed by Executive and the President or Chief
Executive Officer of the Holding Company. 
No waiver by either party hereto at any time of any breach by the other
party hereto of, or compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time.

 

12.                                 Assignment.  This Agreement shall not be assignable by any
party, except by the Holding Company to any successor in interest to its respective
business.

 

3

 

13.                                 Entire Agreement.  This Agreement supersedes any and all
agreements, either oral or in writing, between the parties regarding Executive’s
services and contains all the covenants and agreements between the parties with
respect to his employment by the Holding Company.  This Agreement does not supersede the
Acknowledgment and Release entered into among First Perry Bancorp, Inc.,
the First National Bank of Marysville, HNB Bancorp, Inc., Halifax National
Bank, and William Hummel.

 

14.                                 Validity.  The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement, which shall remain in full force and
effect.

 

15.                                 Applicable Law.  This Agreement shall be
governed by and construed in accordance with the domestic, internal laws of the
Commonwealth of Pennsylvania, without regard to its conflicts of laws
principles.

 

16.                                 Headings.  The section headings of this Agreement are
for convenience only and shall not control or affect the meaning or
construction or limit the scope or intent of any of the provisions of this
Agreement.

 

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

 

 

	
  ATTEST:

  	
   

  	
  HNB
  BANCORP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  Robert M. Garst

  	
   

  	
  By:

  	
  /s/
  Kirk D. Fox

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FIRST
  PERRY BANCORP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  Dorothy A. Taylor

  	
   

  	
  By:

  	
  /s/
  Robert Garst

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
  /s/
  Dorothy A. Taylor

  	
   

  	
  /s/
  William Hummel

  
	
   

  	
   

  	
  William
  Hummel

  

 

4

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