Document:

Exhibit 10.10

    

    

    Exhibit
      10.10

    

    

    THE
      SUMMIT FINANCIAL GROUP, INC.

     

    DIRECTORS
      DEFERRAL PLAN

     

    By
      a vote of
      the Summit Financial Group, Inc.’s
      Board of
      Directors, (hereinafter referred to as the, “Company”) on the 25th day of April,
      2000, the Company has established The Summit Financial Group, Inc.’s Company
      Directors Deferral Plan (hereinafter referred to as the, “Benefit Plan”) to
      allow eligible Directors the opportunity to participate in the Plan and defer
      all or a portion of their fees in accordance therewith;

     

    It
      is the
      intent of the Company that this Benefit Plan be considered an unfunded
      arrangement maintained primarily to provide supplemental retirement benefits,
      and to be considered a non-qualified benefit plan for purposes of the Employee
      Retirement Security Act of 1974, as amended (“ERISA”).

     

    DIRECTOR’S
      SERVICES

    So
      long as
      the Director shall continue to be a director of the Company the Director shall
      devote best efforts to the performance of duties as a member of the Board of
      Directors and of any of its committees to which the Director is
      appointed.

     

    FEES

    The
      fees
      covered under this Benefit Plan shall be any and all amounts paid to the
      Director for services as a Director, including but not limited to annual fees,
      meeting fees, and committee fees. The fees covered under this Benefit Plan
      shall
      be credited to the Director in the manner and on the terms and conditions
      specified in Paragraph IV subject to the election requirement of Paragraph
      III.

     

    ELECTION
      OF DEFERRED COMPENSATION AND INVESTMENTS

    The
      Director
      shall at the same time as entering into this Benefit Plan file a written
      statement with the Company notifying them as to the percent (%) or dollar amount
      of fees as defined in Paragraph II that is to be deferred. The election to
      defer
      fees may only be made for fees not yet earned as of the date of said election.
      Signed written statements filed under this section, unless modified or revoked
      in writing, shall be valid for all succeeding years. In addition, the Director
      may file with the Company quarterly investment elections setting forth the
      percentage that should hypothetically be invested in each particular
      investment
      vehicle. (A copy of said investment election form is attached hereto, marked
      as
      Exhibit “A-1” and fully incorporated herein by reference). Said amounts shall
      not actually be invested in said investments, and said investment elections
      are
      merely for the purpose of calculating interest and returns
      on
      the Deferred Compensation Account as set forth in Paragraph V. The
      Company
      shall not be under any duty to advise a participant or beneficiary with respect
      to any said hypothetical investment. Said investment elections must be
received
      by
      the Company on or before the 25th day of the month prior to the end
      of the
      quarter.

     

    RABBI
      TRUST AND CREDITS TO DEFERRED COMPENSATION ACCOUNT

    The
      Company
      shall establish a Rabbi Trust for the Benefit Plan. The Company shall pay all
      deferral amounts to the Rabbi Trust. The Trustee shall establish a bookkeeping
      account for the Director (hereinafter called the, “Directors Deferred
      Compensation Account”) which shall be credited on the dates such fees, as
      defined in Paragraph II, would otherwise have been paid with the percentage
      or
      dollar amount that the Director has notified the Company in writing, pursuant
      to
      Paragraph III, that the Director elected to have deferred.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    INTEREST
      AND RETURNS ON THE DEFERRED COMPENSATION ACCOUNT

    Once
      each
      calendar quarter, the Directors Deferred Compensation Account shall
      be credited
      with an amount that is in addition to the fees credited under Paragraph IV.
      Such
      amount shall be determined by multiplying the balance of the Directors Deferred
      Compensation Account by a rate of interest equal to the total return for such
      quarter of the investments chosen by the Director pursuant to Paragraph III.
      Such amount shall be credited as long as there is a balance in the Directors
      Deferred Compensation Account and shall be credited on the last day of each
      calendar quarter.

     

    NATURE
      OF THE DEFERRED COMPENSATION ACCOUNT

    The
      Directors Deferred Compensation Account shall be utilized solely as a device
      for
      the measurement and determination of the amount of deferred compensation to
      be
      paid to the Director at the times hereinafter specified. On the
      contrary, it is understood that all amounts credited to the Directors
      Deferred
      Compensation Account shall be for the sole purpose of bookkeeping and that
      the
      Director shall have no ownership rights of any nature with respect thereto.
      The
      Director’s rights are limited to the rights to receive payments as hereinafter
      provided and the Director’s position with respect thereto is that of a general
      unsecured creditor of the Company.

     

    PAYMENT
      OF DIRECTOR’S DEFERRED COMPENSATION

    Subject
      to
      Subparagraphs VII (A) and (B) hereinbelow, the amounts in the Directors Deferred
      Compensation Account shall be paid, at the election of the Director, in a lump
      sum, or five (5), ten (10), fifteen (15), or twenty (20) equal annual
      installments, plus or minus each year the annual interest gained or market
      value
      lost during the year. The Director shall make said election no later than one
      (1) year prior to receiving the first payment. In the event the Director fails
      to make said election, then the Director shall receive the payments in ten
      (10)
      equal annual installments. The amount payable would be the balance of the
      Director’s Deferred Compensation Account as defined in Section IV, including all
      interest and returns credited pursuant to Paragraph V. The payments set forth
      herein shall commence thirty (30) days after the end of the calendar quarter
      following the Director’s retirement.

     

    The
      end of the Director’s term of office other
      than retirement:
      Subject to Subparagraph VII (B) hereinbelow, if the Director’s term of office
      ends due to resignation,
      removal,
      or failure to be elected to the Board prior to retirement, then the Director
      shall receive the account
      balance1
      in
      a lump sum within thirty (30) days after the end of the calendar quarter
      following the Director’s end of term of office.

    The
      end of the Director’s term of office or the Director’s termination of the Plan
      within three (3) years of the Director’s participation in the
      Plan:
      Notwithstanding the provisions set forth in Paragraph VII hereinabove, if the
      Director’s office ends due to resignation, removal, or failure to be re-elected
      to the Board, prior to retirement, or the Director terminates the Plan within
      the first three (3) years of the Director’s participation in the Plan, then the
      Directors account
      balance1
      shall be paid in two (2) equal installments on the first and last day of the
      calendar year following the year in which the Director would have participated
      in the Plan for three (3) full years.

    DEATH
      OF DIRECTOR PRIOR TO TERMINATION OF SERVICE OR COMMENCEMENT OF
      PAYMENTS

    In
      the event
      of the death of the Director prior to termination of service or commencement
      of
      payments, the Director’s account balance shall be paid in a lump sum within
      thirty (30) days after the end of the calendar quarter following the Director’s
      death and shall be made to a beneficiary or beneficiaries designated by the
      Director in writing and delivered to the Company. In the event no designation
      is
      made, the Director’s account balance shall be paid in a lump sum to the
      Director’s estate. The lump sum payment to be made under this Paragraph shall be
      the Director’s account
      balance1
      as
      determined at the quarterly evaluation following the Director’s
      death.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    DIRECTOR’S
      DEATH

    In
      the event
      of the death of the Director after commencement of payments, but prior to
      receiving all payments due under this Benefit Plan, the Director’s
      account
      balance shall be paid in a lump sum within thirty (30) days after the end of
      the
      calendar quarter following the Director’s death and shall be made to a
      beneficiary or beneficiaries designated by the Director in writing and delivered
      to the Company. In the event no designation is made, the Director’s account
      balance shall be paid in a lump sum to the Director’s estate. The lump sum
      payment to be made under this Paragraph shall be the Director’s account
      balance1 
      as
      determined at the quarterly evaluation following the Director’s
      death.

     

    FUNDING

    The
      Company’s obligation under this Benefit Plan shall be an unfunded and unsecured
      promise to pay. The Company shall not be obligated under any circumstances
      to
      fund its obligations, the Company may, however, at its sole and exclusive
      option, elect to fund this Benefit Plan in whole or in part.

     

    Should
      the
      Company elect to fund this Benefit Plan
      informally, in whole or in part, the manner of such informal funding, and the
      continuance or discontinuance of such informal funding shall be the sole and
      exclusive decision of the Company.

     

    Should
      the
      Company determine to informally fund this Benefit Plan, in whole or in part,
      through the medium of life insurance or annuities, or both, the Company shall
      be
      the owner and beneficiary of the policy. The Company reserves the absolute
      right
      to terminate such life insurance or annuities, as well as any other funding
      at
      any time, either in whole or in part.

     

    Any
      such
      life insurance or annuity policy purchased by the Company shall not in any
      way
      be considered to be security for the performance of the obligations for this
      Benefit Plan. It shall be, and remain, a general, unpledged, unrestricted asset
      of the Company and the Director shall have no interest in such policy
      whatsoever.

     

    EFFECT
      ON OTHER COMPANY BENEFIT PLANS

    Nothing
      contained in this Benefit Plan shall affect the right of the Director to
      participate in or be covered by any qualified or non-qualified pension, profit
      sharing, group bonus or their supplemental compensation or fringe benefit plans
      constituting a part of the Company’s existing or future compensation
      structure.

     

    ASSIGNMENT
      OR PLEDGE

    The
      Directors Deferred Compensation Account and any payment payable at any time
      to
      this Benefit Plan shall not be assignable or subject to pledge or hypothecation
      nor shall said payments be subject to seizure for the payment of any debts,
      judgments, alimony or separate maintenance, or be transferable by operation
      of
      law in the event of bankruptcy, insolvency or otherwise except to the extent
      as
      provided by law.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    CONTINUATION
      AS DIRECTOR

    Neither
      this
      Benefit Plan nor the payments of any benefits thereunder shall be construed
      as
      giving to the Director any right to be retained as a member of the Board of
      Directors of the Company.

     

    NAMED
      FIDUCIARY

    The
      Named
      Fiduciary for this Benefit Plan for purposes of claim procedures under this
      Benefit Plan is Russ Ratliff, or any other successor Trust Officer at South
      Branch Valley National
      Bank. The business address and telephone number of the Named Fiduciary under
      this Benefit Plan is as follows:

     

    Name Russ
      Ratliff, Trust Officer

    Bank South
      Branch
      Valley National Bank

    Main
      Street 310
      North
      Main Street

    City,
      State Moorefield,
      West Virginia

    Phone
      Number (304)
      538-2353

     

    The
      Named
      Fiduciary under this Benefit Plan may be changed at any time with the written
      consent of the Director.

     

    CLAIMS
      PROCEDURE AND ARBITRATION

    In
      the event
      that benefits under this Benefit Plan are not paid to the Director (or to his
      beneficiary in the case of the Director’s death) and such claimants feel
they
      are
      entitled
      to receive such benefits, then a written claim must be made to the Plan
      Fiduciary and Administrator named above within sixty (60) days from the date
      payments are refused. The Plan Fiduciary and Administrator and the Company
      shall
      review the written claim and if the claim is denied, in whole or in part, they
      shall provide in writing within ninety (90) days of receipt of such claim
      provisions of this Benefit Plan upon which the denial is based and any
      additional material or information necessary to perfect the claim. Such written
      notice shall further indicate the additional steps to be taken by claimants
      if a
      further review of the claim denial is desired. A claim shall be deemed denied
      if
      the Plan Fiduciary and Administrator fail to take any action within the
      aforesaid ninety-day period.

     

    If
      claimants
      desire a second review, they shall notify the Plan Fiduciary and Administrator
      in writing within sixty (60) days of the first claim denial. Claimants may
      review this Benefit Plan or any other documents relating thereto and submit
      any
      written issues and comments they may feel appropriate. In its sole discretion
      the Plan Fiduciary and Administrator shall then review the second claim and
      provide a written decision within sixty (60) days of receipt of such claim.
      This
      decision shall likewise state the specific reasons for the decision and shall
      include reference
      to
      specific
      provisions of this Benefit Plan upon which the decision is based.

     

    If
      claimants
      continue to dispute the benefit denial based upon completed performance of
      this
      Benefit Plan or the meaning and effect of the terms and conditions thereof,
      then
      claimants may submit the dispute to a Board of Arbitration for final
      arbitration. Said Board shall consist of one member selected by the claimant,
      one member selected by the Company, one member selected by the first two
      members. The Board shall operate under any generally recognized set of
      arbitration rules. The parties hereto agree that they and their heirs, personal
      representatives, successors and assigns shall be bound by the decision of such
      Board with respect to any
      controversy
      properly submitted to it for determination.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    MISCELLANEOUS

    Amendment
      or Revocation:

    It
      is
      understood that, during the lifetime of the Participant, this Benefit Plan
      may
      be amended or revoked at any time or times, in whole or in part, by the mutual
      written consent of the Participant, the Company, and the Trustee.

     

    Gender:

    Whenever
      in
      this Benefit Plan words are used in the masculine or neuter gender, they
      shall
      be
      read and construed as in the masculine, feminine or neuter gender, whenever
      they
      should so apply.

     

    Effect
      on Other Company Benefit Plans:

    Nothing
      contained in this Benefit Plan shall affect the right of the Participant to
      participate in or
      be
      covered
      by any qualified or non-qualified pension, profit-sharing, group, bonus or
      other
      supplemental compensation or fringe benefit plan constituting a part of the
      Company’s existing or future compensation structure.

     

    Headings:

    Headings
      and
      subheadings in this Benefit Plan are inserted for reference and convenience
      only
      and shall not be deemed a part of this Benefit Plan.

     

    Partial
      Invalidity:

    If
      any term,
      provision, covenant, or condition of this Benefit Plan is determined by an
      arbitrator or a court, as the case may be, to be invalid, void, or
      unenforceable, such determination shall not render any other term, provision,
      covenant, or condition invalid, void, or unenforceable, and this Benefit Plan
      shall remain in full force and effect notwithstanding such partial
      invalidity.

     

                                SUMMIT
      FINANCIAL
      GROUP, INC.

     

    
      

                    By:
/s/
      Oscar
      M. Bean_____

    Chairman
      of
      the Board 

    

      

      
        1
          deferrals
          plus credited interest and returnsExhibit 10.11

    

    Exhibit
      10.11

    

    

    AMENDMENT
      NO. 1 TO DIRECTORS DEFERRAL PLAN AGREEMENT

     

    This
      Amendment No. 1 to Directors Deferral Plan Agreement, to be effective as of
      December 30, 2005, by and among the Summit Financial Group, Inc., or any
      successor corporation (hereinafter refereed to as the “Company”), Summit
      Community Bank, as successor in interest to South Branch Valley National Bank,
      a
      banking corporation with its principal place of business in West Virginia,
      or
      any successor corporation (hereinafter refereed to as the “Trustee”) and
      ____________________________, a member of the Board of Directors (hereinafter
      referred to as the “Director”)

     

    WHEREAS,
      the Company
      established that certain Directors Deferral Plan on April 25, 2000 (the “Benefit
      Plan”);

     

    WHEREAS,
      Director is
      a Participant in the Benefit Plan;

     

    WHEREAS,
      Subsection
      A of Section XVI of the Benefit Plan allows amendment of the Benefit Plan by
      the
      mutual written consent of the Participant, the Bank and the
      Trustee;

     

    WHEREAS,
      Summit
      Community Bank, as successor in interest to South Branch Valley National Bank,
      is the Trustee;

     

    WHEREAS,
      Section III
      of the Benefit Plan needs to be modified to comply with provisions of Section
      409A of the Internal Revenue Code, as amended, and regulations thereunder;
      and

     

    NOW
      THEREFORE WITNESSETH:
      in
      accordance with the provisions of Subsection A of Section XVI of the Benefit
      Plan and in consideration of the mutual covenants set forth herein, the parties
      hereto agree as follows:

     

    1. Section
      III
      of said Benefit Plan is hereby amended to read in full as follows:

     

    III.
       ELECTION
      OF DEFERRED COMPENSATION AND  INVESTMENTS

     

    The
      Director
      shall, for any calendar year, prior to the beginning of such calendar year,
      file
      a written statement with the Company notifying them as to the percent (%) or
      dollar amount of fees as defined in Paragraph II and to be earned in that
      calendar year that is to be deferred. Provided, in the case of the first year
      in
      which a Director becomes eligible to participate in the Benefit Plan, such
      election may be made with respect to fees paid for services performed subsequent
      to the election within 30 days after the date the Director becomes eligible
      to
      participate in the Benefit Plan. Notwithstanding any of the foregoing, for
      deferrals relating all or in part to services performed on or before December
      31, 2005, a written statement may be filed on or before March 15, 2005 with
      the
      Company by the Director participating in the Benefit Plan, notifying the Company
      as to the percent (%) or dollar amount of fees as defined in Paragraph II,
      relating all or in part to services performed after the date of said election
      and on or before December 31, 2005, that is to be deferred. Signed written
      statements filed under this section, unless modified or revoked in writing,
      shall be valid for all succeeding years. In addition, the Director may file
      with
      the Company quarterly investment elections setting forth the percentage that
      should hypothetically be invested in each particular investment vehicle. (A
      copy
      of said investment election form is attached hereto, marked as Exhibit “A-1” and
      fully incorporated herein by reference). Said amounts shall not actually be
      invested in said investments, and said investment elections are merely for
      the
      purpose of calculating interest and returns on the Deferred Compensation Account
      as set forth in Paragraph V. The Company shall not be under any duty to advise
      a
      participant or beneficiary with respect to any said hypothetical investment.
      Said investment elections must be received by the Company on or before the
      25th
      day of the
      month prior to the end of the quarter.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2. Any
      additions or modifications to this Agreement must be in writing and signed
      by
      the parties.

     

    IN
      WITNESS WHEREOF
      the parties
      hereto acknowledge that each has carefully read this Agreement and executed
      the
      original thereof, individually, in the case of Director, or by its respective
      duly authorized officer in the case of Trustee and Company, all on the ____
      day
      of December, 2005.

     

            COMPANY:

     

    

     

    ______________________________                       _____________________________

    Witness                        Title:_________________________

     

    

     

            TRUSTEE:

     

    

     

    ______________________________                      _____________________________

    Witness                      Title:_________________________

     

    

     

    ______________________________                   
_____________________________

                                                  
      Witness

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