Document:

ex103.htm

EXHIBIT 10.3

 

	
CHASE

 
	
Continuing Pledge Agreement

Dated as of September 16, 2009

Pledge. WesBanco, Inc., whose address is One Bank Plaza, Wheeling, West Virginia 26003 (the "Borrower"), pledges, assigns, transfers and grants to JPMorgan Chase Bank, N.A., whose address is 120 S. LaSalle St., Chicago, IL 60603 (together with its successors and assigns, the "Bank")
a continuing security interest in the property listed below under the heading "Schedule of Collateral" (the "Collateral") owned by the Borrower, all Collateral in which the Borrower has rights or power to transfer rights and all Collateral in which the Borrower later acquires ownership, other rights or the power to transfer rights to secure the payment and performance of the Liabilities. If the Collateral consists of "investment property" or "financial assets," as such terms are defined in the UCC (as defined
below), the grant includes any stock rights, stock dividends, liquidating dividends, new securities, financial assets and other property to which the Borrower may become entitled because it owns the Collateral and such property delivered to the Bank or to an intermediary designated by the Bank subject to the control of the Bank to satisfy the requirements of the paragraph captioned "Loan Value of Collateral". The Borrower has transferred the securities to the Bank or other intermediary, as directed by the Bank,
that has entered into a control agreement in form and substance satisfactory to the Bank. In the event the transfer is not complete, the Borrower will complete it within ten (10) days. Collateral shall not include any common trust funds of the Bank in which the Bank is prohibited by applicable law from taking a security interest.  The term "UCC" in this Pledge means the Uniform Commercial Code of Illinois, as in effect from time to time, except to the extent that the validity and perfection or the effect
of non-perfection of the security interest created by this Pledge, or remedies hereunder, in respect of any particular portion of the Collateral, are governed by the laws of a jurisdiction other than the State of Illinois, in which case, the UCC of such jurisdiction shall apply.

SCHEDULE OF COLLATERAL. All shares of WesBanco Bank, Inc. stock now or hereafter outstanding, including, but not limited to the 391,000 shares of common stock represented by Certificate Number 1; including the intangible interest represented by such security, physical certificate,
if any, and all securities entitlements (as defined in the UCC).  In the event any additional shares of stock of WesBanco Bank, Inc. are issued after the date of this Pledge, then the Borrower shall deliver as Collateral all such certificates evidencing such shares as collateral along with duly executed stock powers in blank in favor of the Bank, with respect to such shares in form and substance acceptable to the Bank and any other documents required by the Bank to ensure a perfected first priority
continuing pledge, assignment and security interest in such additional shares.  Collateral includes all substitutions, additions, renewals, investments, reinvestments, free credit balances, cash proceeds, general intangibles, insurance, products and supporting obligations including but not limited to all interest, dividends, other proceeds, instruments and other property now or hereafter received, receivable or otherwise distributed in connection with the sale, lease, license, exchange or other disposition
of any Collateral.  Any securities, investment property, or other property of the Borrower at any time in the custody, possession or control of the Bank shall also constitute the Collateral unless the Bank holds such property solely in a fiduciary capacity.

Liabilities. The term "Liabilities" in this Pledge means all debts, obligations, indebtedness and liabilities of every kind and character of the Borrower whether individual, joint and several, contingent or otherwise, now or hereafter existing in favor of the Bank including without
limitation, all liabilities, interest, costs and fees, arising under or from any note, open account, overdraft, credit card, lease, Rate Management Transaction, letter of credit application, endorsement, surety agreement, guaranty, acceptance, foreign exchange contract or depository service contract, whether payable to the Bank or to a third party and subsequently acquired by the Bank, any monetary obligations (including interest) incurred or accrued during the pendency of any bankruptcy, insolvency, receivership
or other similar proceedings, regardless of whether allowed or allowable in such proceeding, and all renewals, extensions, modifications, consolidations, rearrangements, restatements, replacements or substitutions of any of the foregoing. The term "Rate Management Transaction" in this Pledge means any transaction (including an agreement with respect thereto) that is a rate swap, basis swap, forward rate transaction, commodity swap, commodity option, equity or equity index swap, equity or equity index option,
bond option, interest rate option, foreign exchange transaction, cap transaction, floor transaction, collar transaction, forward transaction, currency swap transaction, cross-currency rate swap transaction, currency option, derivative transaction or any other similar transaction (including any option with respect to any of these transactions) or any combination thereof, whether linked to one or more interest rates, foreign currencies, commodity prices, equity prices or other financial measures.

Representations, Warranties and Covenants. The Borrower represents, warrants and agrees with the Bank that until this Pledge terminates and all Liabilities are paid in full, it owns and it will own the Collateral free and clear of any liens, security interests, assignments or other
encumbrances. The Borrower will not attempt to sell or assign the Collateral or create any lien, security interest, assignment or other encumbrance or claim against it. The Borrower agrees to reimburse the Bank, on demand, for any amounts paid or advanced by the Bank for the purpose of preserving all or any part of the Collateral. The Bank shall exercise reasonable care in the custody and preservation of the Collateral to the extent required by applicable law.

The Borrower represents, warrants and covenants with the Bank that until this Pledge terminates and all Liabilities are paid in full no financing statement or similar record covering all or any part of the Collateral is on file in any public office, and no person or entity other than the Bank has control of the Collateral unless the Bank
has approved that filing and/or control in writing. From time to time at the Bank's request, the Borrower will execute one or more financing statements and control agreements in form and substance satisfactory to the Bank and will pay the cost of filing them in all public offices or recording them with any intermediary where filing or recording is deemed by the Bank to be necessary or desirable. In addition, the Borrower shall execute and deliver, or cause to be executed and delivered, such other documents as
the Bank may from time to time request to create, to perfect, to assure the continuing first priority of or to further evidence, the security interest created in the Collateral by this Pledge, including: (a) a notice of security interest and/or a control agreement with respect to any Collateral from persons or entities considered necessary or desirable by the Bank, all in form and substance satisfactory to the Bank; (b) a notice to and acknowledgement from and control agreement with any bailee or other person
who maintains, possesses or controls any of the Collateral, all in form and substance satisfactory to the Bank; and (c) any consent to the assignment of proceeds of any letter of credit, all in form and substance satisfactory to the Bank.

The Bank shall have the right now and at any time in the future, in its sole and absolute discretion and without notice to the Borrower: to (a) prepare, file and sign the Borrower's name on any proof of claim in bankruptcy or similar document against any owner of the Collateral and (b) to prepare, file and sign the Borrower's name on any
financing statement or similar record, notice of lien, control agreement, assignment or satisfaction of lien or similar document in connection with the Collateral.

Events of Default.  The term "Event of Default" shall have the same meaning in this agreement as in that certain Amended and Restated Credit Agreement dated as of July 31, 2009, by and between the Borrower and the Bank, as amended, modified, restated, and replaced from time
to time.

Bank Appointed Attorney-in-Fact. The Borrower authorizes and irrevocably appoints the Bank as the Borrower's attorney-in-fact, to do any of the following without notice to the Borrower or any other person or entity: to take any action and to execute or otherwise authenticate any record
or other documentation that the Bank considers necessary or advisable to accomplish the purposes of this Pledge, to exercise any rights under this Pledge and to perform any of the undersigned's obligations under this Pledge including but not limited to the following: (a) to endorse and collect all checks, drafts, other payment orders and instruments representing or included in, the Collateral or representing any payment, dividend or distribution relating to any Collateral; (b) to direct any securities or commodity
intermediary or issuer of any Collateral to comply with instructions originated by the Bank directing distribution of the Collateral without the undersigned's further consent; (c) after the occurrence of an Event of Default, to transfer to or restyle any Collateral into the name of the Bank or the Bank's nominee or any broker-dealer that may be an affiliate of the Bank (including converting physical certificates to book-entry holdings); (d) to transfer to the account of the Bank with any Federal Reserve Bank
as Collateral held in book entry form with any Federal Reserve Bank; (e) to execute any control agreement or stock powers or other document of transfer; and (f) to execute any record reasonably believed necessary or appropriate by the Bank for compliance with laws, rules or regulations applicable to any Collateral (including any documentation reasonably believed necessary by the Bank for compliance with Rule 144 or any other restrictions, laws, rules or regulations applicable to any Collateral hereunder that
constitutes restricted securities under the applicable securities laws) and, after the occurrence of an Event of Default, to vote any and all securities or exercise any similar right with respect to any Collateral and the Bank is granted an irrevocable proxy to so vote on the undersigned's behalf. The Borrower's signature on this Pledge or other authentication of this Pledge shall constitute an irrevocable direction by the Borrower to any bank, custodian, broker-dealer, any other securities intermediary or commodity
intermediary or other financial intermediary holding any Collateral or any issuer of any letters of credit to comply with the instructions or entitlement orders, as applicable of the Bank, without the further consent of the Borrower or any other person or entity. This appointment is irrevocable and coupled with an interest and shall survive the death or disability of the Borrower.

Loan Value of Collateral. Borrower agrees that at all times the amount of the Liabilities may not exceed the aggregate Loan Value of the Collateral. Borrower will, at the Bank's option, either supplement the Collateral or make, or cause to be made, any payment under the Liabilities
to the extent necessary to ensure compliance with this provision or the Bank may liquidate Collateral to the extent necessary to ensure compliance with this provision. "Loan Value" means the value assigned by the Bank from time to time, in its sole reasonable discretion, to each item of the Collateral. The Bank retains the right to determine the eligibility of the Collateral.

Registration Rights. If any of the Collateral consists of securities not registered under the Securities Act of 1933, and the issuer proposes to register any of its securities, the Borrower will give the Bank notice of that fact. In addition, and at no cost to the Bank, the Borrower
will use its best efforts to induce the issuer to register the pledged securities so that they may be disposed of by public sale or other public disposition. Upon the completion of registration, the Borrower will deliver certificates without any restrictive legend in exchange for the unregistered securities. The Borrower indemnifies and holds the Bank harmless against any loss, claim, damage or liability arising out of the registration process, and will reimburse the Bank for any legal or other expenses incurred
by the Bank as a result.

Voting Rights. Until the occurrence of an Event of Default with respect to any Liabilities or any agreement related to the Liabilities, the Borrower may exercise all voting and consensual powers and rights pertaining to any Collateral for all purposes not inconsistent with the terms
of this Pledge and may receive and retain all dividends (other than stock or liquidating dividends) on the Collateral prior to any Event of Default. All dividends in stock or property representing stock, and all subscription rights, warrants or other rights or options, all liquidating dividends or distributions, and all securities or other property received as a result of a merger or consolidation, will be Collateral and must be delivered to the Bank or as instructed by the Bank.

Instructions Regarding the Collateral. The Bank may act upon any instructions given by the Borrower whether in writing or not, with regard to additions or substitutions or sale or other disposition of the Collateral and its proceeds. The Borrower agrees that any additions to, substitutions
for or proceeds of the Collateral that it receives will be held for the Bank's benefit and turned over to the Bank. After the occurrence of an Event of Default, the Borrower also gives the Bank permission to have the Collateral or any part of it transferred to or registered in the Bank's name or in the name of any other person or business entity with or without designation of the capacity of that nominee, and will hold the Bank harmless from any liability or responsibility that might result. A carbon, photographic
or other reproduction of this Pledge is sufficient as, and can be filed as, a financing statement or other similar record. The Bank is irrevocably appointed the Borrower's attorney-in-fact to execute any financing statement or similar record on the Borrower's behalf covering the Collateral. The Borrower authorizes the Bank to file one or more financing statements or similar records related to the security interests created by this Pledge, and further authorizes the Bank, instead of the Borrower, to sign such
financing statements.

Remedies. The Borrower agrees and acknowledges that because of applicable securities laws, the Bank may not be able to effect a public sale of the Collateral, and sales at a private sale may be on terms and at a price less favorable than if the securities were sold at a public sale.
The Borrower agrees that all private sales made under these circumstances shall be construed to have been made in a commercially reasonable manner. The Bank's compliance with any applicable state or federal law requirements in connection with the disposition of the Collateral will not adversely affect the commercial reasonableness of any sale of the Collateral. These rights and remedies shall be cumulative and not exclusive. If the Borrower is entitled to notice, that requirement will be met if the Bank sends
notice at least ten (10) days prior to the date of sale, disposition or other event requiring notice, and such notice shall be deemed commercially reasonable. The proceeds of any sale shall be applied first to costs, then toward payment of the Liabilities in any order of application, whether or not the Liabilities have been declared to be due and owing; provided that, to the extent any Liabilities consist of extensions of credit by the issuance of letters of credit or other like obligations of the Bank to third
parties which have not been utilized, such proceeds shall be held by the Bank in a cash collateral account as security for the Liabilities.

Pledge Agreement in Addition to Other Pledge Agreements. This Pledge is in addition to and not in substitution or replacement of any other pledge agreement executed by the Borrower in favor of the Bank, and the Bank's rights under this Pledge and any such other pledge agreement are
cumulative.

Miscellaneous. The Borrower's obligations to the Bank under this Pledge are not subject to any condition, precedent or subsequent, and shall not be released or affected by any change in the composition or structure of the Borrower, including a merger or consolidation with any other
person or entity. If more than one person or entity signs this Pledge as Pledgor, their obligations, covenants, representations and warranties are joint and several  and the Collateral includes any property that is owned by any one or more of the undersigned, individually or jointly with any other person or entity. If more than one person or entity signs as the Borrower, their obligations are joint and several arising out of or relating to this Pledge or the Collateral and each agreement representation,
warranty and covenant shall be individual, joint and several  and the "Collateral" includes any property that is owned by any Borrower individually or jointly with any other. This Pledge is binding on the Borrower and its heirs, successors and assigns, and is for the benefit of the Bank and its successors and assigns. The use of section headings does not limit the provisions of this Pledge.

	  	  	
Borrower:

	  	  	  	
WesBanco, Inc.

	  	  	  	
By:
	  /s/ Paul M. Limbert
	  	  	  	  	  Paul M. Limbert	          President and Chief Executive Officer
	  	  	  	  	
Printed Name
	
Title

	  	
Date Signed:
	  September 17, 2009mccompplan.htm

EXHIBIT 10.1

 

UNITED BANCORP, INC.

UNITED BANK & TRUST

UNITED BANK & TRUST - WASHTENAW

MANAGEMENT COMMITTEE INCENTIVE COMPENSATION PLAN

 

 

This Management Committee Incentive Compensation Plan (“Plan”) has been adopted by the Boards of Directors of United Bancorp, Inc. (“UBI”), United Bank & Trust (UB&T) and United Bank & Trust – Washtenaw
(“UB&T-W”) to be effective on and after January 1, 2009, and until amended or terminated by the Boards of Directors.

 

I.  Purpose of the Plan.

 

The Purpose of the Plan is to provide incentives in the form of additional compensation to those employees of UBI, UB&T and UB&T-W, who are members of the Management Committee and other designated key employees.  The Plan
is designed to reward performance which significantly contributes to the attainment of the business objectives of UBI, UB&T and UB&T-W, specifically including objectives for the Net Income and Return on Equity of UBI.

 

II.  Definition of Terms.

 

The following defined terms shall have the meanings set forth below:

 

	  	
A.
	
“Compensation Committee” shall mean the compensation committee of UBI.
	  
	  	  	  	  
	  	
B.
	
“Net Income” shall mean the net income of UBI (as applicable) as determined by the certified public accounting firm retained by UBI to audit its books and records for the applicable Plan Year, provided that the Compensation Committee may in its discretion make any adjustments it deems appropriate to reflect extraordinary events
that may otherwise result in distortions of Net Income as intended for purposes of this Plan.
	  
	  	  	  	  
	  	
C.
	
“Plan Year” shall mean the calendar year, beginning with calendar year 2009.
	  
	 	 	 	 
	 	 D.	  " Return On Equity” and “UBI ROE” shall mean UBI’s Net Income after income taxes, divided by average equity capital, all as determined by the certified public accountants retained by UBI to perform its audit for the applicable Plan Year, provided
that the Compensation Committee may in its discretion make any adjustments it deems appropriate to reflect extraordinary events that may otherwise result in distortions of UBI ROE as intended for purposes of this Plan.	 
	 	 	 	 
	  	
E.
	“SEO” shall mean each senior executive officer, which shall include only the principal executive officer of UBI, the principal financial officer of UBI, and each of the other three (3) most highly compensated executive officers of UBI 	  

 

 

 

 

	  	
 
	
and its controlled group, as determined according to the requirements in Item 402 of Regulation S-K under the federal securities laws by reference to total compensation for the last completed fiscal year, without regard to whether the compensation is includible in gross income.  Until the compensation data for the current fiscal
year are available, UBI shall make its best efforts to identify the three most highly compensated executive officers for the current fiscal year. “Executive officer” has the same meaning as defined in Rule 3b-7 of the Securities Exchange Act of 1934.  “Controlled group” has the same meaning as defined in Section 414(b) and (c) of the Internal Revenue Code, but only taking into account parent-subsidiary relationships.
	  

 

III.  General Description.

 

Compensation awards will be based on UBI Return on Equity and Net Income adjusted annually by the Compensation Committee, with approval of the Boards of Directors.

 

The Plan protects the interest of shareholders by requiring the attainment of specified levels of Net Income and Return on Equity by UBI, thus aligning the interests of shareholders and Participants in the Plan.

 

The Plan is evidence of UBI’s commitment to the philosophy that a portion of the total compensation of its Management Committee employees should be awarded on an incentive basis which recognizes the contributions of key individual employees
to the success of UBI.  The Plan is UBI’s method of providing that incentive compensation on an equitable basis.

 

IV.  Administration.

 

The Compensation Committee has the responsibility to interpret, administer, and amend the Plan. The determination of the Compensation Committee with respect to the construction, interpretation and administration of the Plan shall be final and
binding on all parties, subject to the provisions of the Claims and Claims Review Procedure set forth in paragraph X, below.

 

V.  Plan Participants.

 

Participants in the Plan shall be only those employees of UBI, UB&T and UB&T-W who are duly appointed members of the Management Committee and other designated key employees for all or a portion of any Plan Year.

 

Employees who become members of the Management Committee and other key employees designated to participate in the Plan during a Plan Year may become Participants in the Plan on such terms and conditions as may be approved in the discretion
of the Compensation Committee.

 

VI.  Determination of Incentive Compensation.

 

Prior to the beginning of each Plan Year (or prior to February 1, 2009 for the first Plan Year), the Compensation Committee, with approval of the Boards of Directors, shall establish the following standards for the Plan for the forthcoming
Plan Year:

 

 

 

 

	  	
A.
	
The UBI ROE and Net Income targets.  The UBI ROE and Net Income targets for the Plan Year shall be adjusted annually.
	  
	  	  	  	  

	  	
B.
	
Participants will be assigned to one of four groups to determine targeted levels of payouts.  The Participant list and assigned group shall be reviewed and adjusted annually.
	  
	  	  	  	  
	  	
C.
	
Attached and incorporated Exhibit A sets forth the percentage of each Participant’s base compensation which will be paid as incentive compensation in accordance with the percentage of the applicable target achieved by the Participant for the Plan Year.  Exhibit A shall be reviewed and adjusted annually.
	  

 

VII.  Payment of Incentive Compensation.

 

After the end of the Plan Year, the Compensation Committee shall determine and certify whether the UBI ROE and Net Income targets have been met and the amount of incentive compensation due to each Participant.  Such amounts shall
be paid to the Participants as soon as reasonably possible after the end of the applicable Plan Year and completion of the necessary accounting required to accurately make such determinations, but in any event no later than the March 15 following the end of the applicable Plan Year.

 

Notwithstanding the preceding, during the period in which any obligation arising from financial assistance to UBI provided under the Economic Stabilization Act of 2008, as amended by the American Recovery and Reinvestment Act of 2009, (collectively
the “Acts”) remains outstanding, the most highly compensated employee, as defined under the Acts and related regulations, shall neither accrue nor be paid any incentive payment pursuant to this Plan to the extent prohibited by the Acts.

 

VIII.  Partial Payments of Incentive Awards.

 

Partial payment of incentive awards will be made under the following circumstances:

 

	  	
A.
	
New Participants – if an individual becomes a Participant during the Plan Year, his or her participation in the Plan for that Plan Year shall be as determined on a prorata basis in the discretion of the Compensation Committee acting in accordance with the provisions of paragraph VI above.
	  
	  	  	  	  
	  	
B.
	
Retirement/Disability – in the event a Participant’s employment is terminated by retirement or disability, the Participant’s incentive compensation will be based on a prorata portion of the Plan Year during which the Participant actually provided his or her personal services.
	  

 

 

 

 

	  	  	  	  
	  	
C.
	
Death – if a Participant dies during the Plan Year, the Participant’s incentive compensation will be based on a prorata portion of the Plan Year during which the Participant actually provided his or her personal services.  Any unpaid incentive compensation shall be paid to the Participant’s designated beneficiary,
or to his or her estate.
	  
	  	  	  	  
	  	
D.
	
Termination for Other Causes – in the event a Participant’s employment is terminated during a Plan Year for any reason other than retirement, disability or death, the Participant shall forfeit all unpaid incentive compensation.
	  

 

IX.  Recovery of Incentive Compensation

 

If the UBI ROE or Net Income determined for a Plan Year is later proven to be materially inaccurate, each Participant who received excess incentive compensation shall return the excess incentive compensation to UBI, UB&T or UB&T-W,
as the case may be.  Excess incentive compensation is the amount by which the incentive compensation paid to the Participant under this Plan exceeds the amount that would have been paid based on an accurate determination of UBI ROE and Net Income.

 

X.  Claims and Claims Review Procedure.

 

If any claim for incentive compensation under this Plan is denied in whole or in part, the Compensation Committee shall as soon as administratively feasible furnish the claimant with a written notice which:

 

	  	
A.
	
Sets forth the reason for the denial; and
	  
	  	  	  	  
	  	
B.
	
Explains the claim review procedure set forth herein.
	  

 

Failure by the Compensation Committee to respond to a claim within a reasonable period of time shall be deemed a denial.  Within sixty (60) days after denial of any claim for incentive compensation under this Plan, the claimant may
make a written request for a review of the denial.

 

Any claimant seeking review is entitled to examine all pertinent documents, and to submit issues and comments in writing.  The Compensation Committee shall render a decision on review of a claim not later than ninety (90) days after
receipt of a request for review.  The decision of the Compensation Committee on review shall be in writing and shall state the reason for the decision.

 

A claimant must first exhaust these administrative procedures before pursuing any claim for benefits under this Plan in any other venue.

 

XI.  Amendments or Termination.

 

The Compensation Committee may modify, amend or terminate this Plan at any time, provided that no such modification, amendment or termination shall adversely affect a Participant’s right to incentive compensation for the then current
Plan Year, except to the extent required by law or to the extent the Compensation Committee determines that a modification is needed to ensure 

 

 

 

 

that the Plan does not encourage SEOs to take unnecessary or excessive risks that threaten the value of UBI or any of its controlled group members.

 

XII.  Miscellaneous Provisions.

 

	  	
A.
	
A Participant’s rights and interests under the Plan may not be assigned, pledged or transferred in any manner.
	  
	  	  	  	  
	  	
B.
	
No Participant or other person shall have any claim or right to be granted incentive compensation under this Plan.  Neither this Plan nor any action taken hereunder shall be construed as giving any Participant or employee of UBI, UB&T or UB&T-W any right to be retained as an employee.
	  
	  	  	  	  
	  	
C.
	
UBI, UB&T and UB&T-W, as applicable, shall have the right to deduct any taxes required by law to be withheld from all incentive compensation paid in accordance with this Plan.
	  

 

 

XIII.  Governing Law.

 

This Plan and all the determinations made and actions taken pursuant hereto shall be governed by and interpreted under the laws of the state of Michigan, except as otherwise specifically provided by the terms of the Plan.

 

IN WITNESS WHEREOF, this Plan has been executed by the undersigned duly authorized corporate officers by authority duly vested in them by appropriate action of the applicable
Board of Directors, this 15th day of September, 2009.

 

 

	  	
United Bancorp, Inc.

	  	  
	  	  
	  	
By:
	  /s/ Robert K. Chapman
	  	  	
Robert Chapman, Chairman and Chief Executive Officer

	  	  
	  	  
	  	
United Bank & Trust

	  	  
	  	  
	  	
By:
	  /s/ Joseph R. Williams
	  	  	
Joseph R. Williams, President and Chief Executive Officer

	  	  
	  	  
	  	
United Bank & Trust- Washtenaw

	  	  
	  	  
	  	
By:
	  /s/ Todd C. Clark
	  	  	
Todd C. Clark, President and Chief Executive Officer

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