Document:

ex10-1.htm

    Exhibit 10.1

     

    AMENDED AND RESTATED
EMPLOYMENT AGREEMENT

     

    I, David
Maisel, agree to the terms and conditions of employment with Marvel
Entertainment, Inc. (“Company”) set forth in this employment agreement
(“Agreement”), which amends and restates my employment agreement dated May 3,
2005, as amended.

     

    1.           Term of Employment. My
employment under this Agreement (“Term”) shall commence on May 2, 2008 and shall
end on December 31, 2010 (“Expiration Date”) or such earlier date on which my
employment is terminated under Section 5 of this Agreement.  If the
Company continues to employ me beyond the Expiration Date without entering into
a written agreement extending the term of this Agreement, except as provided in
a new written employment agreement between the Company and me, all obligations
and rights under this Agreement shall lapse as of the Expiration Date, except my
confidentiality and other obligations under Sections 6 and 7, the Company’s
ongoing indemnification obligation under Section 8, and our mutual arbitration
obligations under Section 9, and I thereafter shall be an at-will employee of
the Company.

     

    2.           Nature of Duties.  I
shall be the Company’s Executive Vice President, Office of the Chief Executive
and the Chairman of Marvel Studios, and I shall report to the Company’s Chief
Executive Officer.  I shall work exclusively for the Company and shall
perform such senior executive duties as the Company shall from time to time
assign me.  I shall devote my full business time and effort to the
performance of my duties for the Company, which I shall perform faithfully and
to the best of my ability.  I shall be subject to the Company’s
policies, procedures and approval practices, as generally in effect from time to
time, except to the extent that they conflict with this Agreement.

     

    I further
agree to accept election, and to serve during all or any part of the Term, as an
officer or director of the Company and of any subsidiary or affiliate of the
Company, without any compensation therefor other than that specified in this
Agreement, if elected to any such position by the stockholders or by the Board
or of any subsidiary or affiliate, as the case may be.  Unless
otherwise agreed to in writing by the Company and me, I shall immediately resign
any such office or directorship upon the expiration of the Term.

     

    3.           Place of
Performance.  I shall be based at the Company’s offices in
Beverly Hills, CA, except for required travel on the Company’s business, and
with the understanding that the Company may require that half or less of my time
performing my duties hereunder be spent at the Company’s headquarters in New
York City.  Any business travel shall be arranged in accordance with
the travel policies and procedures established by the Company.

     

    4.           Compensation and Related
Matters.

     

    (a)           Base Salary.  The
Company shall pay me base salary at the following annual rates, or such higher
rate as it elects to pay me: (i) from January 1, 2008 (retroactively) through
December 31, 2008: $800,000; and (ii) thereafter: $1,000,000.  My base
salary shall be paid in conformity with the Company’s salary payment practices
generally applicable to other similarly situated Company
employees.  In addition to my base salary, I shall

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    receive,
through December 31, 2008, $1,100 per month (the amount formerly provided to me
as “car allowance”) as salary not subject to raises, bonuses or severance
pay.

     

    (b)           Bonuses.

     

    (i)  I will be eligible to
receive an annual cash bonus, in such amount (if any) as the Board may determine
in its sole discretion, based in whole or in part upon the attainment of the
performance goals set by the Board, all of the preceding to be consistent with
the Company’s executive officers in general (the “Bonus Performance
Goals”).  My target annual bonus amount shall be 50% of my Base Salary
received for the year.  The Board shall have the sole discretion to
determine in good faith whether I have attained the Bonus Performance
Goals.  Each annual bonus shall be paid when annual bonuses are paid
generally to the Company’s other similarly situated employees but in no event
later than a day that is within the first two and one-half months of the next
calendar year.

     

    (ii)  In addition, with
respect to each of 2009 and 2010, I shall receive an award entitling me to a
bonus of $2,662,426.  Both the 2009 and 2010 bonuses under this
Section 4(b)(ii) shall be earned in full upon the achievement of the performance
goal set forth in the award letter issued to me by the Compensation Committee of
the Company’s Board on April 21, 2008.  The 2009 bonus shall be
payable in early 2010, on the schedule described in Section 4(b)(i) for 2009
bonuses; the 2010 bonus shall be payable in early 2011, on the schedule
described in Section 4(b)(i) for 2010 bonuses.  If the performance
goal for the bonuses under this Section 4(b)(ii) is not met, then,
notwithstanding anything herein to the contrary, I shall be permitted, on at
least 60 days’ notice received on or before January 31, 2009, to resign my
employment hereunder effective at any date on or before March 31, 2009, in which
case, provided that I have complied with the confidentiality provisions of this
Agreement and executed a separation agreement and general release on the
Company’s standard form: (1) I will receive the bonus, if any, that the Company
awarded me for the previously completed fiscal year, if unpaid; (2) I will
receive a portion of the bonus that the Company would have awarded me for the
fiscal year in which the resignation is effective, prorated for the number of
days I actually worked for the Company in that fiscal year (and payable when
such bonus would have been paid had my employment not terminated); (3) any
award made to me under the Company’s stock incentive plan(s) or cash incentive
compensation plan(s) shall continue to vest through March 31, 2009; (4) any
stock options awarded to me by the Company shall remain exercisable, if they
have not expired by their terms, for 90 days after March 31, 2009; and (5) I
shall be released from any obligation hereunder not to compete with the
Company.

    

    (c)           Standard
Benefits.  During my employment, I shall be entitled to
participate in all employee benefit plans and programs (including any group
health plans, qualified pension plans, and 401(k) plans) to the same extent
generally available to other similarly situated Company employees, in accordance
with the terms of those plans and programs.  The Company shall have
the right to terminate or change any such plan or program at any
time.

     

    
      (d)           Vacation.  I shall
be entitled to a vacation period or periods of four (4) weeks in 2008, and three
(3) weeks per year in each year after 2008, taken in accordance with the
vacation policy of the Company during each year of the Term.

    

     

    
      
         

      

      
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    (e)           Expenses.  I shall
be entitled to receive prompt reimbursement for all reasonable and customary
travel and business expenses I incur in connection with my employment, but I
must incur and account for those expenses in accordance with the policies and
procedures established by the Company.

     

    5.          
 Termination.

     

    (a)           Rights and
Duties.  If my employment is terminated, I shall be entitled to
the amounts or benefits shown on the applicable row of the following table,
subject to the balance of this Section 5.  The Company and I shall
have no further obligations to each other, except my confidentiality and other
obligations under Sections 6 and 7, the Company’s ongoing indemnification
obligation under Section 8, and our mutual arbitration obligations under
Section 9, or as set forth in any written agreement I subsequently enter
into with the Company.  In no event will any of the payments to be
made under this section be made later than the seventy-fourth (74th) day of the
next fiscal year after they become payable.

     

    
      	
              DISCHARGE
      FOR CAUSE

            	
              Payment
      or provision when due of (1) any unpaid base salary, expense
      reimbursements, and vacation days accrued prior to termination of
      employment, and (2) other unpaid vested amounts or benefits under Company
      compensation, incentive, and benefit plans.

               

            
	
              DEATH
      OR DISABILITY

            	
              Same
      as for “Discharge for Cause” EXCEPT that, in exchange for my (or my
      estate’s) execution of a release in accordance with this section and
      provided that I have not violated any of my obligations under Section 6,
      below, (1) I (or my estate) will receive the bonus, if any, that the
      Company awarded me for the previously completed fiscal year, if unpaid;
      (2) I (or my estate) will receive a portion of the bonus that the Company
      would have awarded me for the fiscal year in which termination occurs,
      prorated for the number of days I actually worked for the Company in that
      fiscal year (and payable when such bonus would have been paid had my
      employment not terminated); (3) any award made to me under the Company’s
      stock incentive plan(s) or cash incentive compensation plan(s) shall
      immediately vest in full; and (4) any stock options awarded to me by the
      Company shall remain exercisable, if they have not expired by their terms,
      for 90 days after my termination date.

               

            
	
              DISCHARGE
      OTHER THAN FOR CAUSE, DEATH, OR DISABILITY

            	
              Same
      as for “Discharge for Cause” EXCEPT that, in exchange for my execution of
      a release in accordance with this section and provided that I have not
      violated any of my obligations under Section 6, below, (1) my base salary,
      but not my employment, shall continue through the Expiration Date or such
      date as I commence employment with another entity (or self-employment),
      whichever comes first; (2) I will receive the bonus, if any, that the
      Company awarded me for the previously completed fiscal year, if unpaid;
      (3) I will receive the bonus(es) that the Company would have awarded
      me

            

    

     

     

    
      
         

      

      
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              for
      the period remaining through the Expiration Date (and payable when such
      bonus would have been paid had my employment not terminated); (4) the
      Company will reimburse me for the cost of any COBRA health continuation
      coverage I purchase (in excess of the amount I would have paid for group
      health coverage had I remained on the Company’s group health plan as an
      employee) until the earlier of (A) the date on which I become eligible for
      health insurance benefits under another employer’s plan or (B) the
      Expiration Date; (5) any award made to me under the Company’s stock
      incentive plan(s) or cash incentive compensation plan(s) shall continue to
      vest during the period described in clause (1) of this sentence, subject
      to the achievement of any applicable performance goals; and (6) any stock
      options awarded to me by the Company shall remain exercisable, to the
      extent vested and if they have not expired by their terms, for 90 days
      after the expiration of the period described in clause (1) of this
      sentence. 

               

            
	
              RESIGNATION
      WITHOUT GOOD REASON

            	
              Same
      as for “Discharge for Cause.”

               

               

            
	
              RESIGNATION
      WITH GOOD REASON

            	
              Same
      as for “Discharge Other Than for Cause, Death, or
Disability.”

               

               

            
	
              TERMINATION
      WITHOUT CAUSE OR RESIGNATION WITH GOOD REASONS WITHIN 12 MONTHS AFTER A
      THIRD PARTY CHANGE IN CONTROL

            	
              Same
      as for “Discharge for Cause” EXCEPT that, in exchange for my execution of
      a release in accordance with this section and provided that I have not
      violated any of my obligations under Section 6, below, (1) I will receive,
      in a lump sum within 30 days after my termination date, an amount equal to
      two times the sum of (A) my then current Base Salary and (B) the average
      of the two most recent annual bonuses paid to me by the Company (treating
      any annual bonus which is not paid as a result of my failure to attain the
      Bonus Performance Goals as having been paid in an amount equal to zero) or
      if only one annual bonus has been paid to me by the Company, the amount of
      that annual bonus; (2) I will receive the bonus, if any, that the Company
      awarded me for the previously completed fiscal year, if unpaid; (3) I will
      receive the bonus(es) that the Company would have awarded me for the
      period remaining through the Expiration Date (and payable when such bonus
      would have been paid had my employment not terminated); (4) the Company
      will reimburse me for the cost of any COBRA health continuation coverage I
      purchase (in excess of the amount I would have paid for group health
      coverage had I remained on the 

            

    

     

     

    
      
         

      

      
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      	 	Company’s
      group health plan as an employee) until the earlier of (A) the date on
      which I become eligible for health insurance benefits under another
      employer’s plan or (B) the Expiration Date; (5) any award made to me under
      the Company’s stock incentive plan(s) or cash incentive compensation
      plan(s) shall continue to vest through the Expiration Date, unless vested
      sooner pursuant to the terms of the award; and (6) any stock options
      awarded to me by the Company shall remain exercisable, to the extent
      vested and if they have not expired by their terms, for 90 days after the
      Expiration Date.
      
              Any
      payments or benefits provided to me in connection with a Third Party
      Change on Control shall be in lieu of any other benefits or payment
      available or otherwise payable to me under this Section
      5.
 
	
              EXPIRATION
      OF AGREEMENT

            	
              Same
      as for “Discharge for Cause,” except that my bonuses with respect to 2010
      shall be payable in accordance with their terms (e.g., subject to the
      achievement of any applicable performance goals) as if my employment
      continued through the payment date.

            

    

     

    In the
event that any limitation is imposed by a court or arbitrator on the
enforceability of my covenants in Section 6(c)(i) and/or Section 6(c)(ii), I
agree that I shall nevertheless forfeit any right to future benefits under this
Section 5(a) in the event that I directly or indirectly, on my own behalf or on
behalf of any other person or entity, whether as an owner, director, officer,
partner, employee, agent or consultant, for pay or otherwise:

     

    (i)            render
services of an executive, advertising, marketing, sales, supervisory, technical,
research, purchasing, or consulting nature to any person or entity (or on my own
behalf, if I am self-employed) that is engaged in a business that competes with
or intends to compete with any business conducted by the Group (as defined
in Section 6(a), below), including but not limited to character-based licensing,
publication (in any medium) of comic books or other graphic fiction, toy
manufacturing, film production and entertainment, or in the event that I become
interested in any such business, directly or indirectly, as an individual,
partner, shareholder, director, officer, principal, agent, employee, trustee,
consultant, or in any other relationship or capacity; provided, however, that I shall
not forfeit any rights under this Section 5(a) solely by acquiring, solely as an
investment, up to five percent (5%) of the outstanding shares of capital stock
of any public corporation or by continuing to hold my current 0.5% equity
interest in YoungHollywood.com; or

     

    (ii)           solicit
or serve, participate in soliciting or serving or induce, advise, encourage or
attempt to solicit or serve any customer, supplier, vendor, or distributor of
the Group (A) for which I was responsible during my employment with the Company,
(B) with whom I had business contacts or dealings on behalf of the Company
during my employment with the Company, or (C) about which I learned confidential
information.

     

    
      
         

      

      
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    (b)           Discharge for
Cause.  The Company may terminate my employment at any time for
Cause.  “Cause” means that one or more of the following events
occurred:

     

    (i)          
 my conviction of a felony, a crime involving theft,
fraud, dishonesty or moral turpitude, or any violation of any federal or
state securities law (whether by plea of nolo contendere or otherwise)
or my being enjoined from violating any federal or state securities law or being
determined to have violated any such law.

     

    (ii)          
 my refusal to follow the Company’s lawful directions consistent with
Sections 2 and 3 above or my material failure to perform my duties (other than
by reason of physical or mental illness, injury, or condition), in either case,
after I have been given written notice of my default describing the default in
reasonable detail, and 30 business days to cure my default;

     

    (iii)           my
engaging in conduct constituting embezzlement, willful assistance to a
competitor, fraud, misappropriation, material violation of the Company’s
anti-discrimination, equal employment opportunity, prohibition against
harassment or similar written policies provided to me by the Company or material
violation of the Company’s insider trading policy or corporate code of business
conduct and ethics;

     

    (iv)           my
failure (including, but not limited to, my refusal to be deposed or to provide
testimony at any trial or inquiry) to cooperate, if requested by the Board, with
any investigation or inquiry, whether internal or external, into my actions (or
inactions) or the Company’s business practices;

     

    (v)          
 my possession on Company premises of any prohibited drug or substance that
would amount to a criminal offense;

     

    (vi)           my
gross misconduct or gross negligence in connection with the business of the
Company or any affiliate;

     

    (vii)          my
material breach of this Agreement, including of any promise I made in Section 6,
below; or

     

    (viii)         my
seeking, exploring, or accepting a position with another business enterprise or
venture without the Company’s written consent at any time more than 90 days
before the Expiration Date.

     

    If my employment ends for any reason
other than discharge by the Company for Cause, but at a time when the Company
had Cause to terminate me (or would have had Cause if it then knew all relevant
facts), my termination shall be treated as a discharge by the Company for
Cause.

     

    
                                                     
(c)           Termination for
Disability.  Except as prohibited by applicable law, the
Company may terminate my employment on account of Disability, or may transfer me
to inactive employment status, which shall have the same effect under this
Agreement as a termination for Disability.  “Disability” means a
physical or mental illness, injury, or condition

    

    
      
         

      

      
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     that
prevents me from performing substantially all of my duties under this Agreement
for at least 90 consecutive calendar days or for at least 120 calendar days,
whether or not consecutive, in any 365 calendar-day period, or is likely to do
so, as certified by a physician selected by the Company.

     

    (d)           Discharge Other Than for Cause,
Death, or Disability.  The Company may terminate my employment
at any time for any reason, and without advance notice.  If I am
terminated by the Company other than for Cause, Death, or Disability, I will
receive the special benefits provided for a non-Cause discharge under Section
5(a) only if I sign a separation agreement and general release form furnished to
me by the Company within 45 days from its delivery to me (or such shorter
deadline as the Company establishes at the time) and I do not thereafter
properly revoke the release.

     

    (e)           Resignation.  I
promise not to resign my employment before the Expiration Date unless I have
been given Good Reason (as defined below) to do so.  If I break that
promise and resign other than for Good Reason, I shall nevertheless remain
employed under this Agreement except to the extent the Company elects to cancel
it.  If I resign other than for Good Reason and the Company accepts my
resignation, the Company may do so effective on the date set forth in my notice
or any earlier date.  If I resign for Good Reason, my employment will
end on my last date of work and I will receive the benefits to which I am
entitled under Section 5(a), but only if I sign a separation agreement and
general release form furnished to me by the Company within 45 days from its
delivery to me (or such shorter deadline as the Company establishes at the time)
and I do not thereafter properly revoke the release. “Good Reason” means that,
without my express written consent, one or more of the following events occurred
after my execution of this Agreement and was not reversed or cured within 30
days of my giving the Company written notice that I consider the event (if it
remains) to have given me “Good Reason” for resigning:

     

    (i)           
assignment to me of duties inconsistent with Section 2 above;

     

    (ii)           a
transfer of my principal office to a location more than 50 miles from the
location set forth in Section 3 above; or

     

    (iii)          the
Company’s material breach of this Agreement.

     

    An event that is or would constitute
Good Reason, however, shall cease to be Good Reason if:  (1) I do not
terminate employment within 30 days after the end of the 30-day notice period
referred to above; or (2) I was a primary instigator of the Good Reason event
and the circumstances make it inappropriate for me to receive Good Reason
resignation benefits under this Agreement.

     

    
                                                    
(f)           Death.  If I die
while employed under this Agreement, my employment shall be considered
terminated as of my date of death and the payments required by Section 5(a) in
the event of my death shall be made.

    

    
 

    
      
         

      

      
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    (g)           Transfers to Group
Member.  My transfer to another member of the Group shall not
be deemed a termination of my employment under this Agreement if it assumes this
Agreement.

     

    (h)           Garden Leave.  The
Company shall not be obligated to use my services or any of the results and
proceeds thereof or to permit me to retain any corporate office, and the Company
shall have the unilateral right, at any time and from time to time, without
notice, in its sole and absolute discretion, to suspend that use and that
permission and to require me to remain otherwise exclusively available to
provide my services to the Company (the “Garden Leave Option”).  If
the Company elects to exercise the Garden Leave Option prior to the Expiration
Date, the Company shall have no obligation or liability to me pursuant to this
Agreement or otherwise, except to pay to me my salary under Section 3(a) above,
my bonuses under Section 3(b) above and my benefits under Section 3(c) above, in
each case in the same installments and on the same dates as if the Company had
not exercised the Garden Leave Option.  No exercise by the Company of
the Garden Leave Option shall, under any circumstances, be deemed to constitute
(i) a breach by the Company of any term of this Agreement, express or implied
(including, without limitation, a breach of any implied covenant of good faith
and fair dealing) or (ii) a wrongful deprivation by the Company of my corporate
office (or authority, opportunities or other benefits relating
thereto).  No exercise by the Company of the Garden Leave Option shall
prevent the Company from exercising its termination rights set forth elsewhere
in this Section 5 or from requiring me, from time to time, to render services
under this Agreement.

     

    (i)           Disputes Under This
Section.  All disputes relating to this Agreement, including
disputes relating to this section, shall be resolved by final and binding
arbitration under Section 9.  For example, if the Company and I
disagree as to whether the Company had Cause to terminate my employment, we will
resolve the dispute through arbitration; the arbitrator will decide whether the
Company had Cause to terminate my employment.

     

    (j)           Amounts Owed to the
Company.  Any amounts payable to me under this section shall
first be applied to repay any amounts I owe the Company.

     

    (k)           Third Party Change in
Control.  For purposes of this Agreement, a Third Party Change
in Control shall be deemed to have occurred if (i) any “person” or “group” (as
those terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”)), other than an Excluded Person or
Excluded Group (as defined below) (hereinafter, a “Third Party”), is or becomes
the “beneficial owner” (as defined below), directly or indirectly, of securities
of the Company representing fifty percent (50%) or more of the combined voting
power of the Company’s then outstanding securities entitled to vote in the
election of directors of the Company, (ii) the Company is a party to any merger,
consolidation or similar transaction as a result of which the shareholders of
the Company immediately prior to the transaction beneficially own securities of
the surviving entity representing less than fifty percent (50%) of the combined
voting power of the surviving entity’s outstanding securities entitled to vote
in the election of directors of the surviving entity, or (iii) all or
substantially all of the assets of the Company are acquired by a Third
Party.  “Excluded Group” means a “group” (as that term is used in
Sections 13(d) and 14(d) of the Exchange Act) that includes one or more Excluded

     

    
      
         

      

      
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    Persons;
provided that the voting power of the voting stock of the Company beneficially
owned by those Excluded Persons represents a majority of the voting power of the
voting stock beneficially owned by the group.  “Excluded Person” means
Isaac Perlmutter, any spouse or descendant of Mr. Perlmutter, any trust
established solely for the benefit of, and any charitable trust or foundation
established by, Mr. Perlmutter or his spouse or descendants and each of their
respective affiliates and estates.  “Beneficial owner”, “beneficially
own” and “beneficially owned” have the same meanings as in Rule 13d-3 under the
Exchange Act.

     

    (l)           Section
409A.   Notwithstanding anything in this Section 5 to the
contrary, if and to the extent that the Company determines in good faith that
(i) any payment or benefit that exceeds two times the limit in effect under Code
Section 401(a)(17) for the calendar year of my termination (or, if less, two
times my annualized compensation for the preceding calendar year) and that is
otherwise payable to me under this Section 5 constitutes a “deferral of
compensation” under Section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”) (as set forth in Treasury Regulations or binding
administrative notices or rulings issued by the Internal Revenue Service) and
(ii) I am a “specified employee” within the meaning of Code Section
409A(a)(2)(B)(i), then the Company shall delay commencement of any such payment
or benefit until six months after my last day of employment with the Company
(the “409A Suspension Period”).  Within fourteen calendar days after
the end of the 409A Suspension Period, the Company shall pay me a lump sum
payment in cash equal to any payments (including interest on any such payments,
at an interest of not less than the prime interest rate, as published in The Wall Street Journal, over
the period such payment is restricted from being paid to me) and benefits that
the Company would otherwise have been required to provide under this Section 5
but for the imposition of the 409A Suspension Period.  Thereafter, I
shall receive any remaining payments and benefits due under this Section 5 in
accordance with the terms of this section (as if there had not been any
suspension period beforehand).

     

    (m)           Golden Parachute
Limitation.  If any  payment  or benefit
(within the meaning of Section 280G(b)(2) of the Code), to me or for my benefit
paid or payable or distributed or distributable pursuant to the terms of this
Agreement or otherwise in connection with, or arising out of, my employment with
the Company or a change in ownership or effective control of the Company or of a
substantial portion of its assets (a “Parachute Payment” or “Parachute
Payments”), would be subject to the excise tax imposed by Section 4999 of the
Code or any interest or penalties are incurred by me with respect to such excise
tax (such excise tax, together with any such interest and penalties, are
hereinafter collectively referred to as the “Excise Tax”), then I will be
entitled to receive an additional payment (a “Gross-Up Payment”) in an amount
such that after payment by me of all taxes (including any interest or penalties,
other than interest and penalties imposed by reason of my failure to file timely
a tax return or pay taxes shown to be due on my return), including any Excise
Tax imposed upon the Gross-Up Payment, I retain an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the Parachute
Payments.  I shall receive any payments due under this Section 5(m)
within two and one-half months after they become payable (to the extent
reasonably practicable), and in no event later than the
end of the calendar year after the year in which I remit the taxes giving rise
to the payment hereunder.

     

                                   The
determination as to whether a Gross-Up Payment is required pursuant to this
Agreement and the amount of such Gross-Up Payment shall be made at the Company’s
expense 

    
 

    
      
         

      

      
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    by the
Company’s regular outside auditors (the “Accounting Firm”).  The
Accounting Firm shall provide its determination (the “Determination”), together
with detailed supporting calculations and documentation to the Company and me
within ten days of the Termination Date if applicable, or promptly upon request
by the Company or by me (provided I reasonably believe that any of the Parachute
Payments may be subject to the Excise Tax) and if the Accounting Firm determines
that no Excise Tax is payable by me with respect to a Parachute Payment or
Parachute Payments, it shall furnish me with an opinion reasonably acceptable to
me that no Excise Tax will be imposed with respect to any such Parachute Payment
or Parachute Payments.  \  The Gross-Up Payment, if any, as
determined pursuant to this Section 5(m) shall be paid by the Company to me
within ten days of the receipt of the accounting Firm’s
determination.  The Determination shall be binding, final and
conclusive upon the Company and me.  Notwithstanding the foregoing, in
no event shall payment of the Gross-Up Payment occur before the earlier of my
“separation from service” (within Treasury Regulation §
1.409A-1(h))  from the Company or a change in control event (as
described within Treasury Regulation § 1.409A-3(i)(5), a “Qualifying Change in
Control”).  If I become entitled to receive a Gross Up Payment in
connection with a change in control that is not a Qualifying Change in Control,
the unpaid Gross-Up Payment shall accrue interest at an annual interest rate of
prime plus one-percent until paid immediately following my last day of
employment; however, if I am a “specified employee” within the meaning of Code
Section 409A(a)(2)(B)(i), then the Company shall pay me the deferred Gross-Up
Payment on the date that is six months after my last day of employment with the
Company.

     

    6.           Confidentiality
Obligations.

     

    (a)           Acknowledgments.  I
recognize and agree that the Company and its subsidiaries and affiliates
(collectively or separately as the context may require, the “Group”) currently
conduct the Business (as defined below) world-wide.  I further
recognize and agree that, in my position with the Company, I will be responsible
for:  (i) actively conducting the Business, (ii) overseeing Company
activities, (iii) developing and implementing strategies on behalf of the
Company and everywhere the Group currently conducts the Business, and (iv)
affecting customers, suppliers, and distributors everywhere the Group currently
conducts the Business.  In addition, I recognize and agree that, to
enable me to satisfy my duties and responsibilities under this Agreement, the
Company will invest substantial resources in me by making available to me
Confidential Information (as defined below) and other valuable resources and
assets for which I would not have had access, but for my employment with the
Company.  To protect the Group’s business interests, including its
Confidential Information (as defined below) and business relationships, I make
the following promises in this Section 6.

     

    (b)           Non-Disclosure of Confidential
Information.  I promise and agree that I will never, directly
or indirectly, use, disclose or retain any trade secret, proprietary and/or
confidential information relating to the Group that I receive or become aware of
during my employment with or service to the Company (or that I have already
received or become aware of) concerning, among other things, the Group’s
business, operations, customers, suppliers, investors, and business partners
(“Confidential Information”).  “Confidential Information” may include,
among other things, information relating to the Group’s business or operational
methods; corporate plans and strategies; management systems; finances; new
business opportunities; scripts and storylines of entertainment projects; plans
or activities 

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

    involving
the financing, development, casting, marketing, release and/or distribution of
entertainment projects; story and character ideas; profits; costs of media
trades/investments; pricing and sales arrangements; terms of business; marketing
or sales of any products or services; technical processes; research projects;
inventions; designs; applications; know-how; lists or details of actual, past or
potential clients, customers or suppliers or the arrangements made with any of
them; and any information in respect of which the Group owes an obligation of
confidentiality to any third party, conveyed orally or reduced to a tangible
form in any medium.  “Confidential Information” does not include
information that (i) is generally known within the relevant industry or (ii)
that I can demonstrate by a preponderance of the evidence has subsequently
become known to me other than through my work for the Group and not as a result
of a breach of any duty owed to the Group by me or any third
party.  Notwithstanding this paragraph, I may disclose Confidential
Information as required by court order, subpoena, or otherwise as required by
law, provided that upon receiving such order, subpoena, or request and prior to
disclosure, I shall provide written notice to the Company of such order,
subpoena, or request and of the content of any testimony or information to be
disclosed and shall cooperate fully with the Company to lawfully resist
disclosure of such information.  Nothing in this Agreement shall
prevent me from testifying or meeting with any representatives of any federal,
state or local law enforcement agency who are investigating any matters
involving the Company’s business practices.

     

    (c)           Non-Competition and
Non-Solicitation.  I promise and agree that I will not (except
on behalf of the Company), directly or indirectly, on my own behalf or on behalf
of any other person or entity, whether as an owner, director, officer, partner,
employee, agent or consultant, for pay or otherwise, while I am employed
hereunder and, in the event that my employment ends prior to the Expiration
Date, at any time prior to the Expiration Date:

     

    (i)           render
services of an executive, advertising, marketing, sales, supervisory, technical,
research, purchasing, or consulting nature to any person or entity (or on my own
behalf, if I am self-employed) that is engaged in a business that competes with
or intends to compete with any business conducted by the Group, including but
not limited to character-based licensing, publication (in any medium) of comic
books or other graphic fiction, toy manufacturing, film production and
entertainment (“Business”), nor shall I become interested in any such business,
directly or indirectly, as an individual, partner, shareholder, director,
officer, principal, agent, employee, trustee, consultant, or in any other
relationship or capacity; provided, however, that nothing
contained in this paragraph shall be deemed to prohibit me from acquiring,
solely as an investment, up to five percent (5%) of the outstanding shares of
capital stock of any public corporation or from continuing to hold my current
0.5% equity interest in YoungHollywood.com;

     

    (ii)           solicit
or serve, participate in soliciting or serving or induce, advise, encourage or
attempt to solicit or serve any customer, supplier, vendor, or distributor of
the Group (A) for which I was responsible during my employment with the Company,
(B) with whom I had business contacts or dealings on behalf of the Company
during my employment with the Company, or (C) about which I learned confidential
information;

     

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

     

    (iii)           induce
or attempt to induce any employee of, independent contractor for or service
provider to the Group to stop working, or to reduce their work or services, for
the Group or to work for any competitor of the Group; or

     

    (iv)           
induce or attempt to induce any party referred to in Section 6(c)(ii) hereof to
alter its business dealings with the Group.

     

    (d)           Return of
Information.  I promise and agree that, prior to my last day of
employment with the Company or at the Company’s earlier request, I will return
all Company property and/or Confidential Information in any form or media and
all copies thereof in my possession, custody, or control, including memoranda,
notes, records, reports, manuals, drawings, blueprints, and other documents, and
I shall delete all Confidential Information from any computers, e-mail accounts,
or other electronic memory devices I own or use outside the Company’s workplace
(including, but not limited to, PDAs, cell phones, and USB storage
devices).

     

    (e)           Remedies.  I
understand and acknowledge that the promises and agreements made by me in this
Section 6 are essential, material, and indispensable conditions of this
Agreement, and that the payment and benefits provided for herein by the Company
would not have been provided in the absence of these promises and
agreements.  I acknowledge that the terms of this Section
6:  (i) are reasonable and necessary to protect the Group’s legitimate
interests; (ii) will not prevent me from earning or seeking a livelihood; and
(iii) shall apply wherever permitted by law.  I further acknowledge
and agree that my violation of any of the terms of this Section 6 would
irreparably harm the Group.  Accordingly, I agree that if I violate
any promise or agreement made by me in this Section 6:

     

    (i)          
 the Company may terminate my employment immediately for
Cause;

     

    (ii)           all
payments and benefits otherwise owing to me under Section 5 of this Agreement
shall immediately cease and be considered forfeited, and I shall have no further
entitlement to such payments or benefits;

     

    (iii)           the
Company shall have the right and remedy to require me to account for and pay
over to the Company all compensation, profits, monies, accruals, increments, or
other benefits (collectively “Benefits”) derived or received by me as the result
of any transactions constituting a breach of any of the provisions of this
Section 6, and I hereby promise and agree to account for and pay over such
Benefits to the Company;

    

    (iv)           the
Group will be entitled to, in addition to and without limiting any other
remedies available to it, an injunction to be issued by any court of competent
jurisdiction restraining me from committing or continuing any such violation,
without the need to prove the inadequacy of money damages or to post any bond or
to make any other undertaking;

     

    
      (iv)           with
respect to any proceedings under this Section 6(e), I consent to the
non-exclusive jurisdiction of the Federal and state courts located in New
York 

       

    

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

    

    County,
New York  State and I waive any objection to those courts’ being the venue
of those proceedings; and

    

    (vi)           the
Group shall be entitled to recover from me the reasonable costs, including
attorneys’ fees, it incurs in pursuing legal action to enforce this Section 6,
but only if that legal action results in a money judgment, temporary restraining
order, or injunction against me.

     

    Each of
the rights and remedies enumerated above shall be independent of the other, and
shall be severally enforceable, and all of such rights and remedies shall be in
addition to, and not in lieu of, any other rights and remedies available to the
Company under law or in equity.

     

    (f)           Enforceability.  If
any of the provisions, covenants, or parts thereof in this Section 6 are
construed to be invalid or unenforceable, the same shall not affect the
remainder of the provisions, covenants, or parts thereof, which shall be given
full effect, without regard to the invalid portions.  If any of the
provisions, covenants, or parts thereof in this Section 6 are held to be
unenforceable because of the duration or scope of such provision or the area
covered thereby, the parties hereto agree that the court making such
determination shall have the power to reduce the duration, scope and/or area of
such provision and, in its reduced form, said provision shall then be
enforceable.  The parties hereto intend to and hereby confer
jurisdiction to enforce the covenants contained in this Section 6 upon the
courts of any state within the geographical scope of such
covenants.  In the event that the courts of any one or more of such
states shall hold such covenants wholly unenforceable by reason of the breadth
of such covenants or otherwise, it is the intention of the parties hereto that
such determination not bar or in any way affect the Company’s right to the
relief provided above in the courts of any other states within the geographical
scope of such covenants as to breaches of such covenants in such other
respective jurisdictions, the above covenants as they relate to each state being
for this purpose severable into diverse and independent covenants.

     

    (g)           Survival.  This
Section 6, and the promises and agreements I made in this section, shall survive
the end of my employment and the termination of this Agreement for any
reason.

     

    7.         
  Inventions and
Patents; Intellectual Property; Work for Hire.

     

    (a)           I
agree that all processes, technologies and inventions, including new
contributions, improvements, ideas and discoveries, whether patentable or not,
conceived, developed, invented or made by me during my employment by the Company
or for one year thereafter (collectively, “Inventions”) shall belong to the
Company, provided that such Inventions grew out of my work with the Company or
any of its subsidiaries or affiliates, are related to the business (commercial
or experimental) of the Company or any of its subsidiaries or affiliates or are
conceived or made on the Company’s time or with the use of the Company’s
facilities or materials.  I shall promptly disclose any Inventions to
the Company and shall, subject to reimbursement by the Company for all
reasonable expenses incurred by me in connection therewith, (a) assign to the
Company, without additional compensation, all patent and 

     

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

    other
rights to such Inventions for the United States and foreign countries; (b) sign
all papers necessary to carry out the foregoing; and (c) give testimony in
support of my inventorship.

     

    (b)           The
Company shall be the sole owner of all the products and proceeds of my services
hereunder, including, but not limited to, all materials, ideas, concepts,
formats, suggestions, developments, arrangements, packages, programs and other
intellectual properties that I may acquire, obtain, develop or create in
connection with and during his employment, free and clear of any claims by me
(or anyone acting or claiming on my behalf) of any kind or character whatsoever
(other than the my right to receive payments hereunder).  I shall, at
the request of the Company, execute such assignments, certificates or other
instruments as the Company may from time to time deem necessary or desirable to
evidence, establish, maintain, perfect, protect, enforce or defend its right,
title or interest in or to any such properties.

    

    (c)           I
understand that within the scope of my employment, I may create or contribute to
literary, artistic, or other kinds of material (collectively, the “Works”) that
may qualify as “works made for hire” under U.S. copyright law, and if so, that
the Company is the author and sole owner of the Works in the U.S. and worldwide,
and I waive any rights I may have to the Works, including moral
rights.  If at any time, any of the Works are deemed not to be works
made for hire, I assign, grant, transfer and convey to the Company all my right,
title and interest to the Works for the entire length of time they are protected
by any applicable law.  I agree (whether during or after my employment
with the Company) to sign any document the Company may reasonably request in
order to secure or enforce the Company’s rights in the Works.  I
irrevocably appoint the Company and any of its officers as my attorney-in-fact
to secure and enforce the rights in my name.  To the extent that I
retain any right, title or interest to the Works, I agree to:
(i) unconditionally and irrevocably waive the enforcement of such rights,
and all claims and causes of action of any kind against the Company with respect
to such rights; (ii) consent to and join in any action to enforce such rights at
the Company’s request; and (iii) grant to the Company an irrevocable, fully
paid-up, transferable, sublicensable, worldwide right and license to use,
reproduce, distribute, display and perform, prepare derivative works of and
otherwise modify without limitation, make, sell, offer to sell, import and
otherwise use and exploit all or any portion of the Works, in any form or media
(now known or later developed).

    

    8.           Indemnification.  To
the fullest extent permitted by applicable law, I shall be indemnified and held
harmless for any action or failure to act in my capacity as an officer or
employee of the Company or any of its affiliates or subsidiaries.  In
furtherance of the foregoing and not by way of limitation, if I am a party or am
threatened to be made a party to any suit because I am or was an officer or
employee of the Company or such affiliate or subsidiary, I shall be indemnified
against expenses, including reasonable attorney’s fees, judgments, fines and
amounts paid in settlement, if I acted in good faith and in a manner reasonably
believed to be in or not opposed to the best interest of the Company, and, with
respect to any criminal action or proceeding, I had no reasonable cause to
believe that my conduct was unlawful.  I shall give the Company prompt
notice of any such suit; provided, that my failure to do so shall not relieve
the Company from any obligation that it would otherwise have pursuant to this
Section 8 except to the extent that the Company has been prejudiced by that
failure.  The Company shall have the option to control the defense and
settlement of any such suit.  No settlement affecting my rights shall
be entered into by the Company without my consent, such consent not to be
unreasonably withheld.  Indemnification under this Section 8 shall be
in addition to any other indemnification 

     

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

    by the
Company of its officers and directors.  Expenses incurred by me in
defending an action, suit or proceeding for which I claim the right to be
indemnified pursuant to this Section 8 shall be paid by the Company in advance
of the final disposition of such action, suit or proceeding upon receipt of an
undertaking by or on behalf of me to repay such amount in the event that it
shall ultimately be determined that I am not entitled to indemnification by the
Company.  Such undertaking shall be accepted without reference to my
financial ability to make repayment.  The provisions of this Section 8
shall apply as well to my actions and omissions as a trustee of any employee
benefit plan of the Company, its affiliates or subsidiaries.

     

    9.           Arbitration of
Disputes.  Except as expressly prohibited by law and except for
the Company’s right to seek injunctive relief as set forth in Section 6(e),
above, all disputes between the Company and me (“Arbitrable Disputes”) are to be
resolved by final and binding arbitration in accordance with this Section
9.  This section shall remain in effect after the termination of this
Agreement or my employment.

     

    (a)           Scope of
Agreement.  This arbitration agreement applies to, among other
things, disputes concerning my employment with and/or termination from the
Company; the validity, interpretation, enforceability or effect of this
Agreement or alleged violations of it; claims of discrimination under federal or
state law; or other statutory or common law claims.

     

    (b)           The
Arbitration.  The arbitration shall take place under the
auspices of JAMS in the metropolitan area in which I am then (or was last)
employed and conducted in accordance with the JAMS Employment Arbitration Rules
and Procedures then in effect before an experienced employment law arbitrator
licensed to practice law in that jurisdiction who has been selected in
accordance with such rules.  The arbitrator may not modify or change
this Agreement in any way except as expressly set forth herein.

     

    (c)           Fees and
Expenses.  Each party shall pay the fees of its attorneys, the
expenses of its witnesses, and any other costs and expenses that the party
incurs in connection with the arbitration, but all other costs of the
arbitration, including the fees of the arbitrator, the cost of any record or
transcript of the arbitration, administrative fees and other fees and costs
shall be paid one half by the Company and one half by
me.  Notwithstanding the foregoing, the arbitrator may, in his or her
discretion, award reasonable attorneys’ fees (in addition to any other damages,
expenses or relief awarded) to the prevailing party.

     

    (d)           Exclusive
Remedy.  Arbitration pursuant to this Section 9 shall be the
exclusive remedy for any Arbitrable Dispute.  Should I or the Company
attempt to resolve an Arbitrable Dispute by any method other than arbitration
pursuant to this Section 9, the responding party will be entitled to recover
from the initiating party all damages, expenses and attorneys’ fees incurred as
a result of that breach.

     

    
      (e)           Judicial
Enforcement.  Nothing in this Section 9 shall preclude any
party to this agreement from seeking judicial enforcement of an arbitrator’s
award.  Judgment may be entered on the arbitrator’s award in any court
having jurisdiction.

    

     

    
      
         

      

      
        -15-

        
          

        

      

      
         

      

    

     

    10.           Notices.  All
notices, requests, consents and other communica­tions required or permitted
to be given hereunder shall be in writing and shall be deemed to have been duly
given if delivered personally, sent by overnight courier (notices sent by
overnight courier shall be deemed to have been given on the scheduled delivery
date) or mailed first class, postage prepaid, by registered or certified mail
(notices mailed shall be deemed to have been given on the third business day
after mailing), as follows (or to such other address as either party shall
designate by notice in writing to the other in accordance
herewith):

     

    If to the
Company, to:

    

    Marvel
Entertainment, Inc.

    417 Fifth
Avenue

    New York,
New York 10016

    Attention:  General
Counsel

    

    If to me,
to me at my address as then on file with the Company’s Human Resources
Department.

     

    11.           Amendment.  No
provisions of this Agreement may be modified, waived, or discharged except by a
written document signed by a duly authorized Company officer and
me.  Thus, for example, promotions, commendations, and/or bonuses
shall not, by themselves, modify, amend, or extend this Agreement.  A
waiver of any conditions or provisions of this Agreement in a given instance
shall not be deemed a waiver of such conditions or provisions at any other
time.

     

    12.           Interpretation; Governing
Law.  The validity, interpretation, construction, and
performance of this Agreement, and any proceedings under Section 6(e) or
arbitrations under Section 9, shall be governed by the law of the State of New
York (excluding where it mandates the use of another jurisdiction’s
laws).

     

    13.           Successors.  This
Agreement shall be binding upon, and shall inure to the benefit of, me and my
estate, but I may not assign or pledge this Agreement or any rights arising
under it, except to the extent permitted under the terms of the benefit plans in
which I participate.  Without my consent, the Company may assign this
Agreement to any affiliate or successor that agrees in writing to be bound by
this Agreement, after which any reference to the “Company” in this Agreement
shall be deemed to be a reference to the affiliate or successor, and the Company
thereafter shall have no further primary, secondary or other responsibilities or
liabilities under this Agreement of any kind.

     

    14.           Taxes.  The Company
shall withhold taxes from payments it makes pursuant to this Agreement as it
determines to be required by applicable law.

     

    
      15.           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.

    

     

    
      
         

      

      
        -16-

        
          

        

      

      
         

      

    

     

    16.           Counterparts.  This
Agreement may be executed in one or more counterparts, each of which shall be
deemed to be an original but all of which together shall constitute the same
instrument.

     

    17.           Section
Headings.  The section headings contained in this Agreement are
for reference purposes only and shall not in any way affect the meaning or
interpretation of this Agreement.

     

    18.           Subsidiaries and
Affiliates.  As used herein, the term “subsidiary” shall mean
any corporation or other business entity controlled directly or indirectly by
the Company or other business entity in question, and the term “affiliate” shall
mean and include any corporation or other business entity directly or indirectly
controlling, controlled by or under common control with the Company or other
business entity in question.

     

    19.           Entire
Agreement.  All oral or written agreements or representations,
express or implied, with respect to the subject matter of this Agreement are set
forth in this Agreement.  This Agreement overrides and supersedes any
prior agreements or representations, express or implied, with respect to the
subject matter of this Agreement.  This Agreement does not, however,
override or supersede other written agreements I have executed relating to
specific aspects of my employment, such as conflicts of interest.

     

    20.           Former Employers.  I
am not subject to any employment, confidentiality, or other agreement or
restriction that would prevent me from fully satisfying my duties under this
Agreement or that would be violated if I did so.  Without the
Company’s prior written approval, I promise I will not:

     

    (a)           disclose
proprietary information belonging to a former employer or other entity without
its written permission;

     

    (b)           contact
any former employer’s customers or employees to solicit their business or
employment on behalf of the Group; or

     

    (c)           distribute
announcements about or otherwise publicize my employment with the
Group.

     

    I will indemnify and hold the Company
harmless from any liabilities, including defense costs, that it may incur
because I am alleged to have broken any of these promises or improperly revealed
or used such proprietary information or to have threatened to do so, or if a
former employer challenges my entering into this Agreement or rendering services
pursuant to it.

     

    [remainder
of page intentionally left blank]

     

    
      
         

      

      
        -17-

        
          

        

      

      
         

      

    

    

    21.           Department of Homeland Security
Verification Requirement.  I agree to file, in a timely manner,
all documents required by the Department of Homeland Security to verify my
identity and my lawful employment in the United
States.  Notwithstanding any other provision of this Agreement, if I
fail to meet any such requirements promptly after receiving a written request
from the Company to do so, I agree that my employment shall terminate
immediately and that I shall not be entitled to any compensation from the
Company of any type.

     

    
      	      
              I
      acknowledge that all understandings and agreements between the Company and
      me relating to the subjects covered in this Agreement are contained in it
      and that I have entered into this Agreement voluntarily and not in
      reliance on any promises or representations by the Company other than
      those contained in this Agreement itself.

               

              I
      further acknowledge that I have carefully read this Agreement, that I
      understand all of it, and that I have been given the opportunity to
      discuss this Agreement with my private legal counsel and have availed
      myself of that opportunity to the extent I wished to do so.  I
      understand that by signing this Agreement I am giving up my right to a
      jury trial.

            

    

     

    

      
        	Date:    
      May 2, 2008  	MARVEL
      ENTERTAINMENT, INC.  	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                By:

              	/s/
      John N. Turitzin  	 
      
	 
      	 
      	John
      N. Turitzin  	 
      
	 
      	 
      	Executive
      Vice President, Office of the Chief Executive and General Counsel 
      	 
      

      

    

     

     

    
      
        	Date:    
      May 2, 2008  	/s/
      David Maisel  	 
      
	 
      	David
      Maisel  	 
      
	 
      	 
      	 
      

      

     

     

     

     

     

     

     

     

     -18-MID PENN BANK

                            DIRECTOR RETIREMENT PLAN

         1.       DECLARATION OF PURPOSE

         Mid Penn Bank ("Bank"), a Pennsylvania banking company existing under
the laws of the Commonwealth of Pennsylvania, with its primary office at 349
Union Street, Millersburg, Pennsylvania, desires to provide an annual retirement
bonus to qualified retired members of the Board of Directors of Bank ("Board")
pursuant to this Director Retirement Plan ("Plan"). The purpose of this Plan is
intended to reward retired Directors for their years of service to Bank.

         2.       ELIGIBILITY

         Retired Directors that terminated service with the Board and have
completed at least five (5) years of service on the Board are eligible to
receive benefits under the Plan; provided, however, that no benefits shall be
payable to any former Director whose service on the Board is terminated, or who
fails to be renominated to the Board at the expiration of the Director's term,
because of the Director's gross negligence or neglect of duties, commission of a
felony or a misdemeanor involving moral turpitude, or fraud, disloyalty,
dishonesty or willful violation of any law or significant policy of Bank
committed in connection with the Director's service on the Board and resulting
in an adverse financial impact on Bank. Eligibility determinations shall be made
in the sole discretion of Bank and shall be binding upon the affected former
Director.

         3.       CHANGE IN CONTROL BENEFIT

         Notwithstanding anything contained in this Plan to the contrary, if a
Director terminates service with the Board within ninety (90) days after a
Change in Control, benefits shall be payable as otherwise provided under this
Plan, though without regard to whether the Director has completed five (5) years
of service. For purposes of this Plan, a Change in Control (other than one
occurring by reason of an acquisition of Bank by the Director) shall be deemed
to have occurred if the Board certifies on an objective basis that one of the
following has occurred:

                  (a) a sale or other transfer of ownership of all or
substantially all (50% or more of the total gross fair market value) of the
assets of Bank to any individual, corporation, partnership, trust, or other
entity or organization (a "Person") or group of Persons acting in concert as a
partnership or other group, other than a Person controlling, controlled by, or
under common control with Bank;

                  (b) any Person or group of Persons acting in concert as a
partnership or other group, other than a Person controlling, controlled by, or
under common control with Bank, acquires ownership of stock in Bank, that
together with stock held by such Person or group, constitutes more than 50
percent of the total fair market value or total voting power of the stock of
Bank, provided such Person or group did not own more than 50 percent of the
total fair market value or total voting power of the stock of Bank prior to such
acquisition; or

<PAGE>

                  (c) the replacement of a majority of members of the Board of
Directors of Mid Penn Bancorp, Inc. over any period of one year or less by
directors whose appointment or election is not endorsed by a majority of the
members of such Board of Directors prior to the date of the appointment or
election.

         4.       DISABILITY BENEFIT

         Notwithstanding anything contained in this Plan to the contrary, if a
Director terminates service with the Board as a result of the Director's
Disability, benefits shall be payable as otherwise provided under this Plan,
though without regard to whether the Director has completed five (5) years of
service. For purposes of this Plan, Disability shall mean that the Director 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.

         5.       BENEFIT PAYMENTS

         Plan benefits will be paid in cash at the end of each calendar quarter
commencing with the last day of the first full calendar quarter following the
date the Director terminates service on the Board. Benefit payments shall
continue for the life of the Director and terminate at death; provided, however,
that benefit payments shall terminate prior to death once the Director has
received sixty (60) quarterly payments. No payment shall be made for any portion
of the quarter in which benefit payments hereunder are terminated due to the
Director's death.

         6.       COMPUTATION OF BENEFIT

         Benefit amounts are redetermined annually effective as of the first day
of the calendar year. The annual benefit amount shall be determined by
multiplying the base retirement bonus, as described below, for the Director's
position by the number of full years the Director served in the position. A full
year for this purpose shall be deemed any period of twelve (12) consecutive
months whether or not coincident with a calendar year. Benefits shall be
credited only for full years of service on the Board, and for any such year that
a Director serves a portion as Chairman and a portion as a Director (though not
Chairman), credit shall be based for such entire year on the amount in effect
for a Director that is not Chairman of the Board. The base retirement bonus
figures shall be as follows:

                  (a) Chairman of the Board $533.35

                  (b) All other Directors $266.68

         7.       INFLATIONARY ADJUSTMENT

         At the conclusion of the 2007 calendar year, and every year thereafter,
the base retirement bonus amounts set forth in Section 6 hereof (as adjusted
pursuant to this Section 7) in effect for the then concluding year shall be
adjusted effective the beginning of the succeeding calendar year by the positive
percentage change, if any, in the Consumer Price Index - City Average Percentage
Change published by the U.S. Department of Labor Bureau of Labor Statistics for
the twelve-month period ending December 31 of the concluding year for the
Philadelphia-Wilmington-Atlantic City, PA-DE-NJ-MD, area.

<PAGE>

         8.       UNFUNDED ARRANGEMENT

         An eligible Director shall be an unsecured creditor of Bank for
purposes of the payment of benefits under the Plan. Benefits hereunder represent
the mere promise by Bank to pay such benefits. Rights to Plan benefits are not
subject in any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance, attachment, or garnishment by creditors. Any insurance
policy on a Director's life obtained by Bank shall be owned by Bank and shall
confer no preferred or secured claim status to such policy or policy benefits on
any Director or beneficiary.

         9.       REORGANIZATION

         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 Bank under this Plan.

         10.      TERMINATION OF PLAN

         This Plan may be terminated at any time in the sole discretion of Bank;
provided, however, that any such Plan termination will be ineffective with
respect to any Director (i) that has become eligible to receive benefits
hereunder as of the date such Plan termination is approved or (ii) who is
serving on the Board at the time such Plan termination is approved.

         11.      GOVERNING LAW

       The Plan 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. The provisions of this Plan shall be construed
consistent with Section 409A of the Internal Revenue Code and all applicable
guidance thereunder so as not to result in the inclusion in the Director's
income of any benefit under this Agreement by reason of the application of such
section.

                     [REST OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

       12.        EFFECTIVE DATE/STATUS OF PRIOR PLAN

       This Plan shall be effective January 1, 2008 and replaces in its entirety
as of such date the Retirement Bonus Plan for the Board of Directors of Mid Penn
Bank adopted by Bank in 1995 ("Prior Plan"). All payments under the Prior Plan
shall terminate upon this Plan's effective date. Notwithstanding anything
contained in this Plan to the contrary, however, any Director having attained
eligibility for benefits under the Prior Plan will receive benefit payments
without regard to the maximum benefit limitation of sixty (60) quarterly
payments set forth in Section 5 hereof, provided such Director's service on the
Board terminated prior to this Plan's effective date.

                                 Dated this 28th day of November, 2007.

                                 MID PENN BANK

                                 By: /s/ Alan W. Dakey
                                     -------------------------------------------
                                     Signature

                                     Alan W. Dakey
                                     -------------------------------------------
                                     Print Name

                                     President and CEO
                                     -------------------------------------------
                                     Title

                                     /s/ Cindy L Wetzel
                                     -------------------------------------------
                                     Secretary

:204933

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