Document:

Exhibit 10.19

 

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT is made as of the 15th day of  April, 2009, between ADAMS COUNTY NATIONAL BANK (“Bank”), a national banking association having a place of business at 16 Lincoln Square, Gettysburg, Pennsylvania, 17325, and James P. Helt (“Executive”), an individual residing in Pennsylvania.

 

WITNESSETH:

 

WHEREAS, Bank is a subsidiary of ACNB Corporation (“Corporation”);

 

WHEREAS, Bank desires to retain Executive to serve in the capacity of Executive Vice President/Banking Services of Bank under the terms and conditions set forth herein; and,

 

WHEREAS, Executive desires to serve Bank in an executive capacity under the terms and conditions set forth herein;

 

AGREEMENT:

 

NOW, THEREFORE, the parties hereto, intending to be legally bound, agree as follows:

 

1.                                      Employment.

 

(a) Bank hereby employs Executive and Executive hereby accepts employment with Bank, under the terms and conditions set forth in this Agreement.

 

(b) Executive hereby represents to Bank that (i) the execution and delivery of this Agreement by the Executive and the performance by the Executive of the Executive’s duties hereunder shall not constitute a breach of, or otherwise contravene, the terms of any other agreement or policy to which the Executive is a party or by which he is otherwise bound; (ii) the agreements disclosed on Schedule A to this Agreement are the only agreements to which Executive is a party which contain nonsolicitation or noncompetition provisions; and (iii) Executive agrees to comply fully with the nonsolicitation and noncompetition provisions of the agreements disclosed on Schedule A.

 

2.                                      Duties of Executive.  Executive shall serve as the Executive Vice President/Banking Services of Bank reporting only to the Board of Directors and President and CEO of Bank or his designee.  Executive shall have such other duties and hold such other titles as may be given to him from time to time by the Board of Directors of Bank provided that such duties are consistent with the Executive’s position as Executive Vice President/Banking Services.

 

3.                                      Engagement in Other Employment.  Executive shall devote all of his working time, ability and attention to the business of Bank and/or its subsidiaries or affiliates during the term of this Agreement.  The Executive shall notify the Board of Directors of Bank in writing before the Executive engages in any other business or commercial duties or pursuits, including but not limited to, directorships of other companies.  Under no circumstances may the Executive engage in any business or commercial activities, duties or pursuits which compete with the business or commercial activities of the Corporation,

 

 

Bank and/or any of their subsidiaries or affiliates, nor may the Executive serve as a director or officer or in any other capacity in a company which competes with the Corporation, Bank and/or any of their subsidiaries or affiliates.  Executive shall not be precluded, however, upon written notification to the Board of Directors, from engaging in voluntary or philanthropic endeavors, from engaging in activities designed to maintain and improve his professional skills, or from engaging in activities incident or necessary to personal investments, so long as they are, in the Board’s reasonable opinion, not in conflict with or detrimental to the Executive’s rendition of services on behalf of the Corporation, Bank and/or any of their subsidiaries or affiliates.

 

4.                                      Term of Agreement.

 

(a)                                 This Agreement shall be for a three (3) year period (the “Employment Period”) beginning on the date first written above, and if not previously terminated pursuant to the terms of this Agreement, the Employment Period shall end three (3) years later (the “Initial Term”).  The Employment Period shall be extended automatically for one (1) additional year on the first annual anniversary date of the commencement of the Initial Term (the date first above written), and then on each anniversary date of this Agreement thereafter, unless Bank or Executive gives contrary written notice to the other not less than one hundred eighty (180) days before any such anniversary date so that upon the anniversary date if notice had not been previously given as provided in this Section 4(a), the Employment Period shall be and continue for a three (3) year period thereafter.  References in the Agreement to “Employment Period” shall refer to the Initial Term of this Agreement and any extensions to the Initial Term of this Agreement.  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 4(b) hereof.

 

(b)                                 Notwithstanding the provisions of Section 4(a) of this Agreement, this Agreement shall terminate automatically for Cause (as defined herein) upon written notice from the Board of Directors of Bank to Executive.  As used in this Agreement, “Cause” shall mean any of the following:

 

(i)                                     Executive’s conviction of or plea of guilty or nolo contendere to a felony, a crime of falsehood or a crime involving moral turpitude, or the actual incarceration of Executive for a period of twenty (20) consecutive days or more;

 

(ii)                                  Executive’s failure to follow the good faith lawful instructions of the Board of Directors of Bank with respect to its operations, after written notice from Bank and a failure to cure such violation within thirty (30) days of said written notice;

 

(iii)                               Executive’s willful failure to substantially perform Executive’s duties to Bank, other than a failure resulting from Executive’s incapacity because of physical or mental illness, as provided in subsection (d) of this Section 4, after written notice from Bank and a failure to cure such violation within thirty (30) days of said written notice;

 

2

 

(iv)                              Executive’s intentional violation of the provisions of this Agreement, after written notice from Bank and a failure to cure such violation within thirty (30) days of said written notice;

 

(v)                                 dishonesty or gross negligence of the Executive in the performance of his duties;

 

(vi)                              Executive’s removal or prohibition from being an institutional-affiliated party by a final order of an appropriate federal banking agency pursuant to Section 8(e) or 8(g) of the Federal Deposit Insurance Act or by the Office of the Comptroller of the Currency pursuant to national law;

 

(vii)                           conduct by the Executive as determined by an affirmative vote of seventy-five percent (75%) of the disinterested members of the Board of Directors of Bank which brings public discredit to Corporation or Bank and which results or may be reasonably expected to result in material financial or other harm to the Corporation or Bank;

 

(viii)                        Executive’s breach of fiduciary duty involving personal profit;

 

(ix)                              unlawful harassment by the Executive against employees,  customers, business associates, contractors, or vendors of Corporation or  Bank which results or may be reasonably expected to result in material  liability to Corporation or Bank, as determined by an affirmative vote of  seventy-five percent (75%) of the disinterested independent members of  the Board of Directors of Bank, following an investigation of the claims  by a third party unrelated to the Corporation or Bank chosen by the  Executive, Corporation and Bank.  If the Executive, Corporation and Bank  do not agree on said third party, then as chosen by an affirmative vote of  seventy-five percent (75%) of the disinterested independent members of  the Board of Directors of the Corporation;

 

(x)                                 the willful violation by the Executive of the provisions of Sections 1(b), 9, 10 or 11 hereof, after written notice from Bank and a failure to cure such violation within thirty (30) days of said written notice;

 

(xi)                              the willful violation of any law, rule or regulation governing banks or bank officers or any final cease and desist order issued by a bank regulatory authority;

 

(xii)                           theft or abuse by Executive of the Corporation’s or Bank’s property or the property of Corporation’s or Bank’s customers, employees, contractors, vendors, or business associates;

 

(xiii)                        any act of fraud, misappropriation or personal dishonesty;

 

3

 

(xiv)                       insubordination as determined by an affirmative vote of seventy-five percent (75%) of the Board of Directors of Bank, after written notice from Bank and a failure to cure such violation within thirty (30) days of said written notice; or,

 

(xv)                          the existence of any material conflict between the interests of the Corporation or Bank and the Executive that is not disclosed in writing by the Executive to the Corporation and Bank and approved in writing by the Boards of Directors of Corporation and Bank.

 

(xvi)                       Before taking any vote under subparagraphs (vii), (ix) or (xiv) above, all which require notice, Executive shall be entitled to appear before the Board and present Executive’s position as to any issues about which Executive has been notified by the Board in writing.  Such appearance shall be within a reasonable period of time following written notice to Executive of the issues but in no event longer than thirty (30) days after the date of said written notice.

 

If this Agreement is terminated for Cause, all of Executive’s rights under this Agreement shall cease as of the effective date of such termination, except for the rights under Paragraph 19 hereof with respect to arbitration.

 

(c)                                  Notwithstanding the provisions of Section 4(a) of this Agreement, this Agreement shall terminate automatically upon Executive’s voluntary termination of employment (other than in accordance with Section 6 of this Agreement) for Good Reason.  The term “Good Reason” shall mean (i) the assignment of duties and responsibilities inconsistent with Executive’s status as Executive Vice President/Banking Services of Bank, (ii) a reassignment which requires Executive to move his principal residence or his office more than fifty (50) miles from Bank’s principal executive office immediately prior to this Agreement, (iii) any removal of the Executive from office or any adverse change in the terms and conditions of the Executive’s employment, except for any termination of the Executive’s employment under the provisions of Section 4(b) hereof, (iv) any reduction in the Executive’s Annual Base Salary as in effect on the date hereof or as the same may be increased from time to time, or (v) any failure of Bank to provide the Executive with benefits at least as favorable as those enjoyed by the Executive during the Employment Period under any of the pension, life insurance, medical, health and accident, disability or other employee plans of Bank, or the taking of any action that would materially reduce any of such benefits unless such reduction is part of a reduction applicable to all employees.

 

Executive shall, within ninety (90) days of the occurrence of any of the foregoing events, provide notice to Bank of the existence of the condition and provide Bank thirty (30) days in which to cure such condition.  In the event that Bank does not cure the condition within thirty (30) days of such notice, Executive may resign from employment for Good Reason by delivering written notice (“Notice of Termination”) to Bank.

 

If such termination occurs for Good Reason, then Bank shall pay Executive an amount equal to the greater of the remaining balance of the Agreed Compensation, as defined in subsection 4(g), otherwise due to the Executive for

 

4

 

the remainder of the then existing Employment Period or 1.0 times the Executive’s Agreed Compensation, payable in twelve (12) equal monthly installments and shall be subject to federal, state and local tax withholdings.  In addition, for a period of one (1) year from the date of termination of employment, or until Executive secures substantially similar benefits through other employment, whichever shall first occur, Executive shall receive a continuation of all life, disability, medical insurance and other normal health and welfare benefits in effect with respect to Executive during the two (2) years prior to termination of employment, or, if Bank cannot provide such benefits because Executive is no longer an employee, Bank shall reimburse Executive in an amount equal to the monthly premium paid by him to obtain substantially similar employee benefits which he enjoyed prior to termination, subject to Code Section 409A if applicable.

 

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 Code Section 4999, 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.  Notwithstanding any other provision, in the event that Executive is determined to be a specified 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 (1) day following six (6) months from the date of separation of service as that term is defined in Section 409A of the Code.

 

(d)                                 Notwithstanding the provisions of Section 4(a) of this Agreement, this Agreement shall terminate automatically upon Executive’s Disability and Executive’s rights under this Agreement shall cease as of the date of such termination; provided, however, that Executive shall nevertheless be entitled to receive an amount equal to and no greater than seventy-five percent (75%) of the Executive’s Agreed Compensation as defined in subsection (g) of this Section 4, less amounts payable under any disability plan of Bank, until the earliest of (i) Executive’s return to employment, (ii) his attainment of age sixty-five (65), (iii) his death, or (iv) the end of the then existing Employment Period.  In addition, Executive shall receive for such period a continuation of all life, disability, medical insurance and other normal health and welfare benefits in effect with respect to Executive during the two (2) years prior to his disability, or, if Bank cannot provide such benefits because Executive is no longer an employee, Bank shall reimburse Executive in an amount equal to the monthly premium paid by him to obtain substantially similar employee benefits which he enjoyed prior to termination, subject to Code Section 409A if applicable.  For purposes of this Agreement, the Executive shall have a Disability if, 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 or the Executive is, 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, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees

 

5

 

of the Bank.  The Executive shall have no duty to mitigate any payment provided for in this Section 4(d) by seeking other employment.

 

(e)                                  In the event that Executive terminates his employment without Good Reason as defined in Section 4(c), all of Executive’s rights under this Agreement shall cease as of the effective date of such termination, except for the rights under Paragraph 19 hereof with respect to arbitration.

 

(f)                                   Executive agrees that in the event his employment under this Agreement is terminated, Executive shall resign as a director of Corporation or Bank, or any affiliate or subsidiary thereof, if he is then serving as a director of any of such entities.

 

(g)                                  The term “Agreed Compensation” shall equal the sum of (i) the Executive’s highest Annual Base Salary under the Agreement, and (ii) the average of the Executive’s annual bonuses with respect to the three (3) calendar years immediately preceding the Executive’s termination.

 

5.                                      Employment Period Compensation.

 

(a)                                 Annual Base Salary.  For services performed by Executive under this Agreement, Bank shall pay Executive an Annual Base Salary during the Employment Period at the rate of $204,230 per year, minus applicable withholdings and deductions, payable at the same times as salaries are payable to other executive employees of Bank.  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 5(a) to reflect the increased amounts, effective as of the date established for such increases by the Board of Directors of Bank or any committee of such Board in the resolutions authorizing such increases.

 

(b)                                 Bonus.  For services performed by Executive under this Agreement, Bank may, from time to time, pay a bonus or bonuses to Executive as Bank or an affiliate thereof, in its sole discretion, deems appropriate.  The payment of any such bonuses shall not reduce or otherwise affect any other obligation of Bank to Executive provided for in this Agreement.

 

(c)                                  Paid Time-off.  During the term of this Agreement, Executive shall be entitled to paid time-off in accordance with the manner and amount provided under the paid time-off plan currently in effect.  Executive shall be able to accumulate unused paid time-off from one (1) year to the next not to exceed forty-five (45) days in total. However, Executive shall not be entitled to receive any additional compensation from Bank for failure to take a vacation, except to the extent authorized by the Board of Directors of Bank.

 

(d)                                 Employee Benefit Plans.  During the term of this Agreement, Executive shall be entitled to participate in or receive the benefits of any employee benefit plan currently in effect at Bank, subject to the terms of said plan, until such time that the Board of Directors of Bank authorize a change in such benefits.  Bank shall not make any changes in such plans or benefits which would adversely affect Executive’s rights or benefits thereunder, unless such change occurs pursuant to a program applicable to all executive officers of Bank and does not result in a

 

6

 

proportionately greater adverse change in the rights of or benefits to Executive as compared with any other executive officer of 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 5(a) hereof.

 

(e)                                  Business Expenses.  During the term of this Agreement, Executive shall be entitled to receive prompt reimbursement for all reasonable expenses incurred by him, which are properly accounted for, in accordance with the policies and procedures established by the Board of Directors of Bank for its executive officers.

 

6.                                      Termination of Employment Following Change in Control.

 

(a)                                 If a Change in Control (as defined in Section 6(b) of this Agreement) shall occur and (1) Executive is involuntarily terminated without Cause or (2) at the option of Executive, exercisable by Executive within one hundred eighty (180) days of the Change in Control, the Executive terminates employment and gives notice of the intention to collect benefits under this Agreement by delivering written notice (the “Notice of Termination”) to Bank, then the provisions of Section 7 of this Agreement shall apply.

 

(b)                                 As used in this Agreement, “Change in Control” shall mean the occurrence of any of the following, provided the event constitutes a change in control within the meaning of Code Section 409A and the rules, regulations, and guidance promulgated thereunder:

 

(i)                                     (A) a merger, consolidation or division involving Corporation or Bank, (B) a sale, exchange, transfer or other disposition of substantially all of the assets of Corporation or Bank, or (C) a purchase by Corporation or Bank of substantially all of the assets of another entity, unless such merger, consolidation, division, sale, exchange, transfer, purchase or disposition results in 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 Corporation or Bank; or,

 

(ii)                                  any “person” (as such term is defined in Code Section 409A and any Revenue Guidance or Treasury Regulations issued thereunder), other than Corporation or Bank or any “person” who on the date hereof is a director or officer of Corporation or Bank, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of Corporation or Bank representing thirty (30%) percent or more of the total voting power of Corporation’s or Bank’s then outstanding securities; or,

 

(iii)                               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 Corporation or Bank cease for any reason to constitute at least a majority thereof,

 

7

 

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 (2/3) of the directors then in office who were directors at the beginning of the period.

 

7.                                      Rights in Event of Termination Following a Change in Control.

 

(a)                                 In the event that Executive delivers a Notice of Termination (as defined in Section 6(a) of this Agreement) to Bank or Executive is involuntarily terminated without Cause after a Change in Control (as defined in Section 6(b) of this Agreement), Executive shall be entitled to receive the compensation and benefits set forth below:

 

Bank shall pay Executive a lump sum amount equal to and no greater than 2.99 times the Executive’s Agreed Compensation as defined in subsection (g) of Section 4, minus applicable taxes and withholdings. In addition, for a period of two (2) years from the date of termination of employment, or until Executive secures substantially similar benefits through other employment, whichever shall first occur, Executive shall receive a continuation of all life, disability, medical insurance and other normal health and welfare benefits in effect with respect to Executive during the two (2) years prior to his termination of employment, or, if Bank cannot provide such benefits because Executive is no longer an employee, Bank shall reimburse Executive in an amount equal to the monthly premium paid by him to obtain substantially similar employee benefits which he enjoyed prior to termination, subject to Code Section 409A if applicable.  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.

 

Notwithstanding any other provision, in the event that Executive is determined to be a specified 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 (1) day following six (6) months from the date of separation of service as that term is defined in Section 409A of the Code.

 

(b)                                 Executive shall not be required to mitigate the amount of any payment provided for in this Section 7 by seeking other employment or otherwise.  Unless otherwise agreed to in writing, the amount of payment or the benefit provided for in this Section 7 shall not be reduced by any compensation earned by Executive as the result of employment by another employer or by reason of Executive’s receipt of or right to receive any retirement or other benefits after the date of termination of employment or otherwise.

 

8.                                      Rights in Event of Termination of Employment Absent Change in Control.

 

(a)                                 In the event that Executive’s employment is involuntarily terminated by Bank without Cause and no Change in Control shall have occurred at the date of such

 

8

 

termination, Bank shall pay Executive an amount equal to and no greater than 2.99 times the Executive’s Agreed Compensation as defined in subsection (g) of Section 4, and shall be payable in thirty-six (36) equal monthly installments and shall be subject to federal, state and local tax withholdings.  In addition, for a period of two (2) years from the date of termination of employment, or until Executive secures substantially similar benefits through other employment, whichever shall first occur, Executive shall receive a continuation of all life, disability, medical insurance and other normal health and welfare benefits in effect with respect to Executive during the two (2) years prior to his termination of employment, or, if Bank cannot provide such benefits because Executive is no longer an employee, Bank shall reimburse Executive in an amount equal to the monthly premium paid by him to obtain substantially similar employee benefits which he enjoyed prior to termination, subject to Code Section 409A if applicable.  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.

 

Notwithstanding any other provision, in the event that Executive is determined to be a specified 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 (1) day following six (6) months from the date of separation of service as that term is defined in Section 409A of the Code.

 

(b)                                 Executive shall not be required to mitigate the amount of any payment provided for in this Section 8 by seeking other employment or otherwise.  Unless otherwise agreed to in writing, the amount of payment or the benefit provided for in this Section 8 shall not be reduced by any compensation earned by Executive as the result of employment by another employer or by reason of Executive’s receipt of or right to receive any retirement or other benefits after the date of termination of employment or otherwise.

 

9.                                      Covenant Not to Compete.

 

(a)                                 Executive hereby acknowledges and recognizes the highly competitive nature of the business of Corporation and Bank and accordingly agrees that, during and for the applicable period set forth in Section 9(c) hereof, Executive shall not, except as otherwise permitted in writing by the Bank:

 

(i)                                     be engaged, directly or indirectly, either for his own account or as agent, consultant, employee, partner, officer, director, proprietor, investor (except as an investor owning less than 5% of the stock of a publicly owned company) or otherwise of any person, firm, corporation or enterprise engaged in (1) the banking (including bank holding company) or financial services industry, or (2) any other activity in which Corporation or Bank or any of their subsidiaries are engaged during the Employment Period, and remain so engaged at the end of the Employment Period, within a fifty (50) mile radius of Bank’s principal

 

9

 

place of business at 16 Lincoln Square, Gettysburg, Pennsylvania (the “Non-Competition Area”);

 

(ii)                                  provide financial or other assistance to any person, firm, corporation, or enterprise engaged in (1) the banking (including bank holding company) or financial services industry, or (2) any other activity in which Corporation or Bank or any of their subsidiaries are engaged during the Employment Period, in the Non-Competition Area;

 

(iii)                               directly or indirectly solicit persons or entities who were customers or referral sources of Corporation, Bank or their subsidiaries within six (6) months of Executive’s termination of employment, to become a customer or referral source of a person or entity other than Corporation, Bank or their subsidiaries; or,

 

(iv)                              directly or indirectly solicit employees of Corporation, Bank or their subsidiaries who were employed within two (2) years of Executive’s termination of employment to work for anyone other than Corporation, Bank or their subsidiaries.

 

(b)                                 It is expressly understood and agreed that, although Executive and Corporation and Bank consider the restrictions contained in Section 9(a) hereof reasonable for the purpose of preserving for Corporation and Bank and their subsidiaries their goodwill and other proprietary rights, if a final judicial determination is made by a court having jurisdiction that the time or territory or any other restriction contained in Section 9(a) hereof is an unreasonable or otherwise unenforceable restriction against Executive, the provisions of Section 9(a) hereof shall not be rendered void but shall be deemed amended to apply as to such maximum time and territory and to such other extent as such court may judicially determine or indicate to be reasonable.

 

(c)                                  The provisions of this Section 9 shall be applicable, commencing on the date of this Agreement and ending on one of the following dates as applicable:

 

(i)                                     if Executive voluntarily terminates his employment in accordance with the provisions of Section 4(e) of this Agreement (relating to termination without Good Reason), the first anniversary date of the effective date of termination of employment;

 

(ii)                                  if Executive’s employment terminates in accordance with the provisions of Section 4(b) of this Agreement (relating to termination for Cause), the first anniversary date of the effective date of termination of employment;

 

(iii)                               if the Executive voluntarily terminates his employment in accordance with the provisions of Section 4(c) of this Agreement (relating to termination by Executive for Good Reason), the second anniversary date of the effective date of termination of employment;

 

(iv)                              if the Executive’s employment is involuntarily terminated in accordance with the provisions of Section 6 of this Agreement (relating

 

10

 

to involuntary termination without Cause following a Change in Control), the second anniversary date of the effective date of termination of employment; or,

 

(v)                                 if the Executive’s employment is involuntarily terminated in accordance with the provisions of Section 8 of this Agreement (relating to involuntary termination without Cause absent a Change in Control), the second anniversary date of the effective date of termination of employment.

 

10.                               Unauthorized Disclosure.  During the term of his employment hereunder, or at any later time, the Executive shall not, without the written consent of the Board of Directors of Bank or a person authorized thereby, knowingly disclose to any person, other than an employee of Corporation or Bank or a person to whom disclosure is reasonably necessary or appropriate in connection with the performance by the Executive of his duties as an executive of Bank, any material confidential information obtained by him while in the employ of Bank with respect to any of Corporation’s and Bank’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 Corporation or Bank; provided, however, that confidential information shall not include any 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 Corporation and Bank or any information that must be disclosed as required by law.

 

11.                               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 Bank and its affiliates and subsidiaries.  In the event it should be established that such work does not qualify as a Work Made for Hire, the Executive agrees to and does hereby assign to Bank, 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.

 

12.                               Return of Company Property and Documents.  The Executive agrees that, at the time of termination of his employment, regardless of the reason for termination, he will deliver to Bank and its affiliates and subsidiaries, 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 his employment.

 

13.                               Liability Insurance.  Bank shall obtain liability insurance coverage for the Executive under an insurance policy with similar terms as that which is currently covering officers and directors of Bank against lawsuits, arbitrations or other legal or regulatory proceedings.

 

14.                               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

 

11

 

requested, to Executive’s residence, in the case of notices to Executive, and to the principal executive office of Bank, in the case of notices to Bank.

 

15.                               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 an executive officer specifically designated by the Board of Directors of Bank.  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.

 

16.                               Assignment.  This Agreement shall not be assignable by any party, except by Bank to any successor in interest to its business.

 

17.                               Entire Agreement.  This Agreement supersedes any and all agreements, either oral or in writing, between the parties with respect to the employment of the Executive by Bank and/or Corporation and this Agreement contains all the covenants and agreements between the parties with respect to employment.

 

18.                               Successors; Binding Agreement.

 

(a)                                 Corporation or Bank will require any successor (whether direct or indirect, by purchase, merger, consolidation, or otherwise) to all or substantially all of the businesses and/or assets of Corporation and Bank to expressly assume and agree to perform this Agreement in the same manner and to the same extent that Bank would be required to perform it if no such succession had taken place.  Failure by Corporation and Bank to obtain such assumption and agreement prior to the effectiveness of any such succession shall constitute a breach of this Agreement and the provisions of Section 7 of this Agreement shall apply.  As used in this Agreement, “Corporation” and “Bank” shall mean Corporation and Bank, as defined previously and any successor to their respective businesses and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law or otherwise.

 

(b)                                 This Agreement shall inure to the benefit of and be enforceable by Executive’s personal or legal representatives, executors, administrators, heirs, distributees, devisees and legatees.  If Executive should die after a Notice of Termination is delivered by Executive, after a Change in Control, or following termination of Executive’s employment without Cause, and any amounts would be payable to Executive under this Agreement if Executive had continued to live, all such amounts shall be paid in accordance with the terms of this Agreement to Executive’s devisee, legatee, or other designee, or, if there is no such designee, to Executive’s estate.

 

19.                               Arbitration.  Bank and Executive recognize that in the event a dispute should arise between them concerning the interpretation or implementation of this Agreement, lengthy and expensive litigation will not afford a practical resolution of the issues within a reasonable period of time. Consequently, each party agrees that all disputes, disagreements and questions of interpretation concerning this Agreement (except for any enforcement sought with respect to Sections 9, 10, 11 or 12 which may be litigated in court, including an action for injunction or other relief) are to be submitted for resolution,

 

12

 

in Gettysburg, 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 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, except as otherwise provided herein or any enforcement sought with respect to Sections 9, 10, 11 or 12 of this Agreement, including an action for injunction or other relief.

 

20.                               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.

 

21.                               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.

 

22.                               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:
    	
 
    	
ADAMS   COUNTY
    
	
 
    	
 
    	
NATIONAL   BANK
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
  /s/   Thomas A. Ritter
    	
 
    	
By
    	
/s/   Ronald L. Hankey
    
	
 
    	
 
    	
 
    	
Ronald   L. Hankey
    
	
 
    	
 
    	
 
    	
Chairman   of the Board
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
WITNESS:
    	
 
    	
EXECUTIVE
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
  /s/   Thomas A. Ritter
    	
 
    	
  /s/   James P. Helt
    
	
 
    	
 
    	
James   P. Helt
    

 

13

 

SCHEDULE A

 

14Exhibit 10.20

 

ACNB BANK

SALARY CONTINUATION AGREEMENT

 

THIS AGREEMENT is made this 28th day of March, 2012, by and between ACNB Bank, located in Gettysburg, Pennsylvania, and James P. Helt (the “Executive”).

 

INTRODUCTION

 

To encourage the Executive to remain an employee of the Bank, to provide benefits in excess of the limitations imposed on qualified plans, and to offset the recent reduction in the benefits provided under the Group Pension Plan for Employees of ACNB Bank, the Bank is willing to provide salary continuation benefits to the Executive.

 

AGREEMENT

 

The Executive and the Bank, intending to be legally bound, agree as follows:

 

Article 1

Definitions

 

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

 

1.1.1   “Bank” means ACNB Bank and any successor thereto.

 

1.1.2  “Change of Control” means a change in the ownership or effective control of the Corporation or Bank or a change in the ownership of a substantial portion of the assets of the Corporation or Bank as defined in Code Section 409A and 16 C.F.R. § 1.409A-3(i)(5).

 

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

 

1.1.4  “Competing Business” means any person, firm, corporation, business or enterprise which is located or operates an office within fifty (50) miles of the Bank’s principal office at the time of the Executive’s Separation of Service and which is engaged in any business or activity that is or may be deemed to be competitive with any business or activity carried on by the Corporation, Bank, or their subsidiaries as of the date of the Executive’s Separation of Service.

 

1.1.5    “Corporation” means ACNB Corporation and any successor thereto.

 

1.1.6  “Normal Retirement Date” means the Executive attaining age 65, or his actual retirement date if after age 65.

 

1.1.7  “Separation of Service” or “Separates from Service” means termination of the Executive’s employment. Whether a Separation of Service has occurred is determined based on whether the facts and circumstances indicate that the Bank and the Executive reasonably anticipated that no further services would be performed after a certain date or that the level of bona fide services the Executive would perform after such date (whether as an employee or as an independent

 

1

 

contractor) would permanently decrease to no more than twenty percent (20%) of the average level of bona fide services performed (whether as an employee or as an independent contractor) over the immediately preceding thirty-six (36) month period.

 

1.1.8  “Specified Employee” means an employee who at the time of Separation of Service is a key employee of the Corporation or Bank, if any stock of the Corporation or Bank is publicly traded on an established securities market or otherwise. For purposes of this Agreement, an employee is a key employee if the employee meets the requirements of Code Section 416(i)(I)(A)(i), (ii) or (iii) (applied in accordance with the regulations thereunder and disregarding Section 416(i)(5)) at any time during the twelve (12) month period ending on December 31 (the “Identification Period”). If the employee is a key employee during an Identification Period, the employee is treated as a key employee for purposes of this Agreement during the twelve (12) month period that begins on the first day of April following the close of the Identification Period.

 

Article 2

Retirement Benefits

 

2.1  Normal Retirement Benefit. If the Executive Separates from Service on or after the Executive’s Normal Retirement Date for reasons other than death, the Bank shall pay to the Executive the benefit described in this Section 2.1.

 

2.1.1  Amount of Benefit. The annual benefit under this Section 2.1 is $26,563.

 

2.1.2  Payment of Benefit. The Bank shall pay the annual benefit to the Executive in twelve (12) equal monthly installments payable on the first day of each month commencing with the month following the Executive’s Separation of Service and continuing for the greater of the Executive’s life or an additional 179 months.

 

2.2  Early Retirement Benefit. If the Executive Separates from Service before the Executive’s Normal Retirement Date for reasons other than death and a Change of Control has not occurred, the Bank shall pay to the Executive the benefit described in this Section 2.2.

 

2.2.1  Amount of Benefit. The annual benefit under this Section 2.2 is the benefit determined under Schedule A based on the date of the Executive’s Separation of Service.

 

2.2.2  Payment of Benefit. The Bank shall pay the annual benefit to the Executive in twelve (12) equal monthly installments payable on the first day of each month commencing with the month following the Executive’s Normal Retirement Date and continuing for the greater of the Executive’s life or an additional 179 months.

 

2.3  Change of Control Benefit. If a Change of Control has occurred and is followed by a Separation of Service, the Bank shall pay to the Executive the benefit described in this Section 2.3 in lieu of any other benefit under this Agreement.

 

2.3.1  Amount of Benefit. The annual benefit under this Section 2.3 is the Normal Retirement Benefit described in Section 2.1.1.

 

2

 

2.3.2  Payment of Benefit. The Bank shall pay the annual benefit to the Executive in twelve (12) equal monthly installments payable on the first day of each month commencing with the month following the Executive’s Normal Retirement Date and continuing for the greater of the Executive’s life or an additional 179 months.

 

2.4  Restriction on Timing of Distributions. Notwithstanding any provision of this Agreement to the contrary, if the Executive is considered a Specified Employee, the provisions of this Section 2.4 shall govern all distributions under this Article 2. If benefit distributions which would otherwise be made to the Executive due to a Separation of Service are limited because the Executive is a Specified Employee, then such distributions shall not be made during the first six (6) months following Separation of Service. Rather, any distribution which would otherwise be paid to the Executive during such period shall be accumulated and paid to the Executive in a lump sum on the first day of the seventh month following the Separation of Service. All subsequent distributions shall be paid in the manner specified in the appropriate subsection.

 

2.5  Distributions Upon Income Inclusion Under Section 409A of the Code. If, pursuant to Code Section 409A, the Federal Insurance Contributions Act or other state, local or foreign tax, the Executive becomes subject to tax on the amounts deferred hereunder, then the Bank may make a limited distribution to the Executive in accordance with the provisions of Treasury Regulations Section 1.409A-3.

 

2.6  Change in Form or Timing of Distributions. All changes in the form or timing of distributions hereunder must comply with the following requirements. The changes:

 

(a)  may not accelerate the time or schedule of any distribution, except as provided in Section 409A of the Code and the regulations thereunder;

(b)  must, for benefits distributable under Sections 2.1, 2.2 and 2.3, delay the commencement of distributions for a minimum of five (5) years from the date the first distribution was originally scheduled to be made; and,

(c)  must take effect not less than twelve (12) months after the election is made.

 

Article 3

Survivor Benefits

 

3.1  Death During Active Service. If the Executive dies while in the active service of the Bank, the Bank shall pay to the Executive’s beneficiary the benefit described in this Section 3.1.

 

3.1.1  Amount of Benefit. The benefit under Section 3.1 is the benefit that would have been paid to the Executive under Section 2.1 calculated as if the date of the Executive’s death were the Executive’s Normal Retirement Date.

 

3.1.2  Payment of Benefit. The Bank shall pay the benefit to the beneficiary on the first day of each month commencing with the month following the Executive’s death and continuing for 179 additional months.

 

3.2  Death During Benefit Period. If the Executive dies after benefit payments have commenced under this Agreement but before receiving 180 monthly payments, the Bank shall pay the remaining benefits (up to the 180 monthly payments) to the Executive’s beneficiary at the same

 

3

 

time and in the same amounts they would have been paid to the Executive had the Executive survived.

 

3.3  Death Following Active Service Before Benefits Commence. If the Executive is entitled to benefit payments under this Agreement, but dies prior to receiving said benefit payments, the Bank shall pay the Executive’s beneficiary the benefit described in this Section 3.3.

 

3.3.1 Amount of Benefit. The annual benefit under Section 3.3 is the vested benefit that would have been paid to the Executive pursuant to Schedule A.

 

3.3.2  Payment of Benefit. The Bank shall pay the annual benefit to the beneficiary in twelve (12) equal monthly installments payable on the first day of each month commencing with the month following the Executive’s death and continuing for 179 additional months.

 

3.4  Death After Change of Control. If the Executive dies following a Change of Control, provided the Executive was in active service at the time of the Change of Control, the Bank shall pay the Executive’s beneficiary the benefit described in this Section 3.4.

 

3.4.1  Amount of Benefit. The benefit under Section 3.4 is the benefit that would have been paid to the Executive under Section 2.1 calculated as if the date of the Executive’s death were the Executive’s Normal Retirement Date.

 

3.4.2  Payment of Benefit. The Bank shall pay the benefit to the beneficiary on the first day of each month commencing with the month following the Executive’s death and continuing for 179 additional months.

 

Article 4

Beneficiaries

 

4.1  Beneficiary Designations. The Executive shall designate a beneficiary by filing a written designation with the Bank. The Executive may revoke or modify the designation at any time by filing a new designation. However, designations shall only be effective if signed by the Executive and accepted by the Bank during the Executive’s lifetime. The Executive’s beneficiary designation shall be deemed automatically revoked if the beneficiary predeceases the Executive, or if the Executive names a spouse as beneficiary and the marriage is subsequently dissolved. If the Executive dies without a valid beneficiary designation, all payments shall be made to the Executive’s surviving spouse, if any, and, if none, to the Executive’s surviving children and the descendants of any deceased child by right of representation, and, if no children or descendants survive, to the Executive’s estate.

 

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

 

4

 

Article 5

General Limitations

 

5.1  Termination of Employment for the Commission of a Felony.  Notwithstanding any provision of this Agreement to the contrary, the Bank shall not pay any benefit under this Agreement if the Bank terminates the Executive’s employment for the commission of a felony involving the Bank or Bank property.

 

5.2   Noncompetition.

 

5.2.1  If the Executive experiences a Separation of Service before the Executive’s Normal Retirement Date, and no Change of Control has occurred, then no benefits shall be payable under this Agreement, if the Executive, without the written consent of the Bank, engages, directly or indirectly, either for his own account or as agent, consultant, employee, partner, officer, director, proprietor, investor (except as an investor owning less than 5% of the stock of a publicly owned company) or otherwise in a Competing Business within five (5) years after the date of the Executive’s Separation of Service; provided, however, the restrictions of this Section 5.2.1 shall not extend longer than three (3) years after the date on which the Executive begins to receive benefits under this Agreement.

 

5.2.2   If the Executive experiences a Separation of Service on or after the Executive’s Normal Retirement Date, and no Change of Control has occurred, then no benefits shall be payable under this Agreement, if the Executive, without the written consent of the Bank, engages, directly or indirectly, either for his own account or as agent, consultant, employee, partner, officer, director, proprietor, investor (except as an investor owning less than 5% of the stock of a publicly owned company) or otherwise in a Competing Business within three (3) years after the date on which the Executive begins to receive benefits under this Agreement.

 

5.2.3   If a Change of Control occurs after the date of this Agreement, then this Section 5.2 shall not apply.

 

Article 6

Claims and Review Procedures

 

6.1  Claims Procedure. The Bank shall notify the Executive or the Executive’s beneficiary in writing, within ninety (90) days of his or her written application for benefits, of his or her eligibility or noneligibility for benefits under the Agreement. If the Bank determines that the Executive or beneficiary is not eligible for benefits or full benefits, the notice shall set forth (1) the specific reasons for such denial, (2) a specific reference to the provisions of the Agreement on which the denial is based, (3) a description of any additional information or material necessary for the claimant to perfect his or her claim and a description of why it is needed, and (4) an explanation of the Agreement’s claims review procedure and other appropriate information as to the steps to be taken if the Executive or beneficiary wishes to have the claim reviewed. If the Bank determines that there are special circumstances requiring additional time to make a decision, the Bank shall notify the Executive or beneficiary of the special circumstances and the date by which a decision is expected to be made, and may extend the time for up to an additional ninety (90) day period.

 

5

 

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

 

Article 7

Amendments and Termination

 

7.1  Amendments. This Agreement may be amended only by a written agreement signed by the Bank and the Executive. However, the Bank may unilaterally amend this Agreement to conform with written directives from its banking regulators or to comply with legislative changes or tax law, including without limitation Section 409A of the Code and any and all Treasury Regulations and guidance promulgated thereunder.

 

7.2  Plan Termination Generally. This Agreement may be terminated only by a written agreement signed by the Bank and the Executive. The benefit hereunder shall be the amount the Bank has accrued with respect to the obligations hereunder as of the date the Agreement is terminated. Except as provided in Section 7.3, the termination of this Agreement shall not cause a distribution of benefits under this Agreement. Rather, after such termination, benefit distributions will be made at the earliest distribution event permitted under Article 2 or Article 3.

 

7.3  Plan Terminations Under Section 409A. Notwithstanding anything to the contrary in Section 7.2, if this Agreement terminates in the following circumstances:

 

(a)         Within thirty (30) days before, or twelve (12) months after a change in the ownership or effective control of the Corporation or Bank, or in the ownership of a substantial portion of the assets of the Corporation or Bank as described in Section 409A(2)(A)(v) of the Code, provided that all distributions are made no later than twelve (12) months following such termination of the Agreement and further provided that all the Bank’s arrangements which are substantially similar to the Agreement are terminated so the Executive and all participants in the similar arrangements are required to receive all amounts of compensation deferred under the terminated arrangements within twelve (12) months of the termination of the arrangements; or

 

(b)         Upon the Bank’s termination of this and all other arrangements that would be aggregated with this Agreement pursuant to Treasury Regulations Section 1.409A-1(c) if the Executive participated in such arrangements (“Similar

 

6

 

Arrangements”), provided that (i) the termination and liquidation does not occur proximate to a downturn in the financial health of the Bank, (ii) all termination distributions are made no earlier than twelve (12) months and no later than twenty-four (24) months following such termination, and (iii) the Bank does not adopt any new arrangement that would be a Similar Arrangement for a minimum of three (3) years following the date the Bank takes all necessary action to irrevocably terminate and liquidate the Agreement;

 

the Bank may distribute the amount accrued by the Bank with respect to the Bank’s obligations hereunder, determined as of the date of the termination of the Agreement, to the Executive in a lump sum subject to the above terms.

 

Article 8

Miscellaneous

 

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

 

8.2    No Guaranty of Employment. This Agreement is not an employment policy or contract. It does not give the Executive the right to remain an employee of the Bank, nor does it interfere with the Bank’s right to discharge the Executive. It also does not require the Executive to remain an employee nor interfere with the Executive’s right to terminate employment at any time.

 

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

 

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

 

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

 

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

 

8.7  Compliance with Section 409A. This Agreement shall at all times be administered and the provisions of this Agreement shall be interpreted consistent with the requirements of Section 409A of the Code and any and all regulations thereunder, including such regulations as may be promulgated after the effective date of this Agreement.

 

7

 

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

 

	
EXECUTIVE:
    	
 
    	
ACNB   BANK
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
  /s/   James P. Helt
    	
 
    	
By:
    	
  /s/   Thomas A. Ritter
    
	
James   P. Helt
    	
 
    	
 
    	
Thomas   A. Ritter
    
	
 
    	
 
    	
 
    	
President &   Chief Executive Officer
    

 

8

 

ACNB Bank

Executive Salary Continuation Plan

Dated 01/01/2012

Schedule A

James P. Helt

 

	
 
    	
 
    	
 
    	
 
    	
Normal
    	
 
    	
Early
    	
 
    	
Change
    	
 
    	
Pre-Retirement
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Retirement
    	
 
    	
Retirement
    	
 
    	
in Control
    	
 
    	
Death
    	
 
    
	
Date
    	
 
    	
Age
    	
 
    	
Benefit
    	
 
    	
Benefit
    	
 
    	
Benefit
    	
 
    	
Benefit
    	
 
    
	
December 2012
    	
 
    	
46
    	
 
    	
26,563
    	
 
    	
1,624
    	
 
    	
26,563
    	
 
    	
26,563
    	
 
    
	
December 2013
    	
 
    	
47
    	
 
    	
26,563
    	
 
    	
2,100
    	
 
    	
26,563
    	
 
    	
26,563
    	
 
    
	
December 2014
    	
 
    	
48
    	
 
    	
26,563
    	
 
    	
2,621
    	
 
    	
26,563
    	
 
    	
26,563
    	
 
    
	
December 2015
    	
 
    	
49
    	
 
    	
26,563
    	
 
    	
3,192
    	
 
    	
26,563
    	
 
    	
26,563
    	
 
    
	
December 2016
    	
 
    	
50
    	
 
    	
26,563
    	
 
    	
3,818
    	
 
    	
26,563
    	
 
    	
26,563
    	
 
    
	
December 2017
    	
 
    	
51
    	
 
    	
26,563
    	
 
    	
4,504
    	
 
    	
26,563
    	
 
    	
26,563
    	
 
    
	
December 2018
    	
 
    	
52
    	
 
    	
26,563
    	
 
    	
5,262
    	
 
    	
26,563
    	
 
    	
26,563
    	
 
    
	
December 2019
    	
 
    	
53
    	
 
    	
26,563
    	
 
    	
6,092
    	
 
    	
26,563
    	
 
    	
26,563
    	
 
    
	
December 2020
    	
 
    	
54
    	
 
    	
26,563
    	
 
    	
7,005
    	
 
    	
26,563
    	
 
    	
26,563
    	
 
    
	
December 2021
    	
 
    	
55
    	
 
    	
26,563
    	
 
    	
8,019
    	
 
    	
26,563
    	
 
    	
26,563
    	
 
    
	
December 2022
    	
 
    	
56
    	
 
    	
26,563
    	
 
    	
9,132
    	
 
    	
26,563
    	
 
    	
26,563
    	
 
    
	
December 2023
    	
 
    	
57
    	
 
    	
26,563
    	
 
    	
10,363
    	
 
    	
26,563
    	
 
    	
26,563
    	
 
    
	
December 2024
    	
 
    	
58
    	
 
    	
26,563
    	
 
    	
11,727
    	
 
    	
26,563
    	
 
    	
26,563
    	
 
    
	
December 2025
    	
 
    	
59
    	
 
    	
26,563
    	
 
    	
13,239
    	
 
    	
26,563
    	
 
    	
26,563
    	
 
    
	
December 2026
    	
 
    	
60
    	
 
    	
26,563
    	
 
    	
14,902
    	
 
    	
26,563
    	
 
    	
26,563
    	
 
    
	
December 2027
    	
 
    	
61
    	
 
    	
26,563
    	
 
    	
16,771
    	
 
    	
26,563
    	
 
    	
26,563
    	
 
    
	
December 2028
    	
 
    	
62
    	
 
    	
26,563
    	
 
    	
18,831
    	
 
    	
26,563
    	
 
    	
26,563
    	
 
    
	
December 2029
    	
 
    	
63
    	
 
    	
26,563
    	
 
    	
21,161
    	
 
    	
26,563
    	
 
    	
26,563
    	
 
    
	
December 2030
    	
 
    	
64
    	
 
    	
26,563
    	
 
    	
23,736
    	
 
    	
26,563
    	
 
    	
26,563
    	
 
    
	
December 2031
    	
 
    	
65
    	
 
    	
26,563
    	
 
    	
26,563
    	
 
    	
26,563
    	
 
    	
26,563
    	
 
    

 

IF THERE IS A CONFLICT IN ANY TERMS OR PROVISIONS BETWEEN THIS SCHEDULE A AND THE AGREEMENT, THE TERMS AND PROVISIONS OF THE AGREEMENT SHALL PREVAIL.  IF A TRIGGERING EVENT OCCURS, REFER TO THE AGREEMENT TO DETERMINE THE ACTUAL BENEFIT AMOUNT BASED ON THE DATE OF THE EVENT.

 

9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00227-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00227-of-00352.parquet"}]]