Document:

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

 

EXHIBIT

ITEM 10(ii)A(8)

 

Amendment to the Salary

Continuation Agreement Dated December 31,1993

 

 

AMENDMENT

TO THE SALARY CONTINUATION

AGREEMENT

DATED

DECEMBER 31, 1993

 

This Amendment, made and

entered into this 16th day of August, 2001, by and between

Monterey County Bank, a Bank organized and existing under the laws of the State

of California, hereinafter referred to as the, “Bank”, and Charles T.

Chrietzberg, Jr., a Key Employee and Executive of the Bank, hereinafter

referred to as the, “Executive”, shall effectively amend the Salary

Continuation Agreement dated December 31, 1993 as specifically set forth herein

pursuant to ARTICLE XII, MISCELLANEOUS, paragraph 12.01, Amendment,

of said agreement.  The Salary

Continuation Agreement shall be amended as follows:

 

1.) ARTICLE II, BENEFITS,

subparagraph 2.03(a), Retirement, shall be amended to delete the annual

sum of Seventy-five Thousand Dollars ($ 75,000.00) and replace it with an

annual sum of ninety thousand and 00/100ths Dollars ($90,000.00).

 

This amendment shall have the effect of increasing the

benefit to $ 90,000.00 per year until the death of the Executive.

 

This

Amendment shall be effective the 16th day of August, 2001, and the

terms set forth hereinabove shall supercede the specific terms of the December

31, 1993 agreement.  To the extent that

any terms of said agreement are not specifically amended herein, or in any

other amendment thereto, said terms shall remain in full force and effect as

set forth in said December 31, 1993 agreement.

 

IN WITNESS WHEREOF, the

parties hereto acknowledge that each has carefully read this Amendment and

executed the original thereof on the first day set forth hereinabove, upon

execution, each has received a conforming copy.

 

	

   

  	

  MONTEREY COUNTY BANK

  
	

   

  	

  Monterey, California

  
	

   

  	

   

  
	

   /s/ Dorina Chan

  	

   

  	

  By: 

  	

  /s/ Bruce N.

  Warner,  Sr. Vice President

  	

   

  
	

  Witness

  	

  Title

  	

   

  
	

   

  	

   

  
	

   /s/ Dorina Chan

  	

   

  	

   

  	

  /s/

  Charles T. Chrietzberg, Jr.

  	

   

  
	

  Witness

  	

  Charles

  T. Chrietzberg, Jr.

  
							

 

1PIKEVILLE NATIONAL CORPORATION

EXHIBIT

10.4

 

COMMUNITY TRUST BANCORP, INC.

 

SEVERANCE AGREEMENT

 

THIS SEVERANCE AGREEMENT

(“Agreement”), applicable only in the event of a change in control, is made

effective as of the day of                                      , 2002, by and between Community

Trust Bancorp, Inc., a Kentucky corporation having its principal place of

business in Pikeville, Kentucky (the “Company”), and                                       (the “Employee”).

 

1.       Payment of

Severance Amount.  If the Employee’s employment by the Company

or any subsidiary or successor of the Company shall be subject to a Voluntary

Termination or an Involuntary Termination within the Covered Period, then the

Company shall pay the Employee an amount equal to the applicable Severance

Amount, payable within 15 days after the Termination Date.

 

2.       Definitions.  All the terms defined in this paragraph 2

shall have the meanings given below throughout this Agreement.

 

(a)        An “Affiliate”

shall mean any entity which owns or controls, is owned by or is under common

ownership or control with, the Company.

 

(b)       “Base

Annual Salary” shall be equal to the greater of:

 

i.          the employee’s annual salary excluding

bonuses and special incentive payments on the date of the earliest Change of

Control to occur during the Covered Period, or

 

ii.         the employee’s annual salary excluding

bonuses and special incentive payments on the date of the Employee’s

termination of employment from the Company or an Affiliate.

 

(c)        “Change

in Duties” shall mean any one or more of the following:

 

i.          a significant change in the nature or

scope of the Employee’s authorities or duties from those applicable to him

immediately prior to the date on which a Change of Control occurs;

 

ii.         a reduction in the Employee’s Base

Annual Salary from that provided to him immediately prior to the date on which

a Change of Control occurs;

 

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iii.        a diminution in the Employee’s

eligibility to participate in bonus, stock option, incentive award and other

compensation plans which provide opportunities to receive compensation, from

the greater of:

 

•                                the

opportunities provided by the Company (including its subsidiaries) for

executives with comparable duties;

or

•                                the

opportunities under any such plans under which he was participating immediately

prior to the date on which a Change of Control occurs;

 

iv.        a change in the location of the

Employee’s principal place of employment by the Company (including its

Affiliates) by more than twenty-five miles from the location where he was

principally employed immediately prior to the date on which a Change of Control

occurs; or

 

v.         a reasonable determination by the Board

of Directors of the Company that, as a result of a Change in Control and a

change in circumstances thereafter significantly affecting his position, he is

unable to exercise the authorities, powers, function or duties attached to his

position immediately prior to the date on which a Change of Control occurs.

 

(d)       “A

Change of Control” shall be deemed to have occurred if:

 

i.          any “person”, including a “group” as

determined in accordance with the Section 13(d)(3) of the Securities Exchange

Act of 1934 (the “Exchange Act”), is or becomes the beneficial owner, directly

or indirectly, of securities of the Company representing 30 percent or more of

the combined voting power of the Company’s then outstanding securities;

 

ii.         as a result of, or in connection with,

any tender offer or exchange offer, merger or other business combination, sale

of assets or contested election, or any combination of the foregoing

transactions (a “Transaction”), the persons who were directors of the Company

before the Transaction shall cease to constitute a majority of the Board of

Directors of the Company or any successor to the Company;

 

iii.        the Company is merged or consolidated

with another corporation and as a result of the merger or consolidation less

than 70 percent of the outstanding voting securities of the surviving or

resulting corporation shall then be owned in the aggregate by the former

stockholders of the Company, other than (x) affiliates within the meaning of

the Exchange Act or (y) any party to the merger or consolidation;

 

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iv.        a tender offer or exchange offer is made

and consummated for the ownership of securities of the Company representing 30

percent or more of the combined voting power of the Company’s then outstanding

voting securities; or

 

v.         the Company transfers substantially all

of its assets to another corporation which is not a wholly-owned subsidiary of

the Company.

 

(e)        “Covered

Period” for the Employee shall mean a period of time following the

occurrence of a Change of Control equal to (i) two years following the

occurrence of the Change of Control in the event of an Involuntary Termination

or a Voluntary Termination if the Employee has realized a Change in Duties or

(ii) the thirteenth month following the occurrence of the Change of Control in

the event of a Voluntary Termination except as provided above.

 

(f)        “Involuntary

Termination” shall mean any termination which does not result from a

Voluntary Termination by the Employee, however, the term “Involuntary

Termination” shall not include a Termination for Cause by the Company, or any

termination as a result of death, disability, or retirement pursuant to a

retirement plan to which the Employee participated in prior to the Change of

Control.

 

(g)       “Severance

Amount” is equal to:

 

i.          in the case of an Involuntary

Termination, 2.99 times the Employee’s Base Annual Salary, and

 

ii.         in the case of a Voluntary Termination,

2.99 times the Employee’s Base Annual Salary if the Employee has realized a

Change in Duties subsequent to a Change of Control, or 2.00 times the

Employee’s Base Salary in the case of a Voluntary Termination which is not

preceded by a Change in Duties. 

 

(h)       “Termination

for Cause” shall mean only a termination as a result of fraud,

misappropriation of or intentional material damage to the property or business

of the Company (including its subsidiaries), or commission of a felony by the

Employee.

 

(i.)        “Voluntary

Termination” shall mean any termination which is elected by the

Employee.  However, the term “Voluntary

Termination” does not include a termination as a result of death, disability,

or retirement pursuant to a retirement plan to which the Employee participated

in prior to the Change of Control.

 

3.       Golden

Parachute Payment Reduction.   It is the intention of the parties that the

Severance Amount payments under this Agreement shall not

 

3

 

constitute “excess parachute payments”

within the meaning of Section 280G of the Internal Revenue Code of 1986, as

amended, and any regulations thereunder. 

If the independent accountants acting as auditors for the Company on the

date of a Change of Control (or another accounting firm designated by them)

determine that the Severance Amount payments under this Agreement may

constitute “excess parachute payments,” the payments may be reduced to the

maximum amount which may be paid without the payments being “excess parachute

payments.”  The determination shall take

into account (i) whether the payments are “parachute payments” under Section

280G and, if so, (ii) the amount of payments under this Agreement that

constitutes reasonable compensation under Section 280G.  Nothing contained in this Agreement shall

prevent the Company after a Change of Control from agreeing to pay the Employee

compensation or benefits in excess of those provided in this Agreement.

 

4.       Notices.   Notices and all other communications under

this agreement shall be in writing and shall be deemed given when personally

delivered or when mailed by United States registered or certified mail, return

receipt requested, postage prepaid, addressed as follows:

 

If to the Company, to:

 

Community Trust Bancorp, Inc.

346 North Mayo Trail

P.O. Box 2947

Pikeville, KY  41502-2947

 

Attention:  Vice Chairman, President & CEO

 

 

If to the Employee, to:

 

 

 

or to such other address as either party

may furnish to the other in writing, except that notices of changes of address

shall be effective only upon receipt.

 

5.       Applicable Law.   This contract is entered into under, and

shall be governed for all purposes by, the laws of the State of Kentucky.

 

6.       Severability.   If a court of competent jurisdiction

determines that any provision of this Agreement is invalid or unenforceable,

then the invalidity or unenforceability of that provision shall not affect the

validity or enforceability of

 

4

 

any other provision of this Agreement and

all other provisions shall remain in full force and effect.

 

7.       Withholding of

Taxes.   Company may withhold from any benefits

payable under this Agreement all Federal, state, city or other taxes as may be

required pursuant to any law, governmental regulation or ruling.

 

8.       Not An

Employment Agreement.   Nothing in this Agreement shall give the

Employee any rights (or impose any obligations) to continued employment by the

Company or any subsidiary or successor of the company, nor shall it give the

Company any rights (or impose any obligations) for the continued performance of

duties by the Employee for the Company or any subsidiary or successor of the

Company.

 

9.       No Assignment.   The Employee’s right to receive payments or

benefits under this Agreement shall not be assignable or transferable, whether

by pledge, creation of a security interest or otherwise, other than a transfer

by will or by the laws of descent or distribution.  In the event of any attempted assignment or transfer contrary to

this paragraph the Company shall have no liability to pay any amount so attempt

to be assigned or transferred.  This

Agreement shall insure to the benefit of and be enforceable by the Employee’s

personal or legal representatives, executors, administrators, successors,

heirs, distributees, devisees and legatees.

 

10.     Successors.   This Agreement shall be binding upon and

inure to the benefit of the Company, its successors and assigns (including,

without limitation, any company into or with which the Company may merge or

consolidate).  The Company agrees that

it will not effect the sale or other disposition of all or substantially all of

its assets unless either (i) the person on entity acquiring the assets or a

substantial portion of the assets shall expressly assume by an instrument in

writing all duties and obligations of the Company under this Agreement or (ii)

the Company shall provide, through the establishment of a separate reserve for

the payment in full of all amounts which are or may reasonably be expected to

become payable to the Employee under this Agreement.

 

11.     Term.   This Agreement shall be effective as of the

date first above written and shall remain in effect for an initial period of

three years.  In the event of a Change

of Control during the term of this Agreement, this Agreement shall remain in

effect for the Covered Period.

 

12.     Extension.   This Agreement shall automatically extend

at the end of the initial term or any renewal term for successive one-year

periods, unless the Company gives the Employee written notice of its intention

not to renew at least

 

5

 

sixty (60) days, but not more than one

hundred twenty (120) days, prior to the last date of such term or renewal term,

as applicable.

 

IN WITNESS WHEREOF, the parties have

caused this Agreement to be executed and delivered as of the day and year first

written.

 

	

  COMMUNITY

  TRUST BANCORP, INC., Board of Directors

  
	

   

  
	

   

  
	

  By:

  	

   

  	

   

  
	

   

  	

  President & CEO

  
	

   

  
	

  Date:

  	

   

  	

   

  
					

 

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