Document:

mrbk_Ex10_2

		
			Exhibit 10.2
		

		
			EMPLOYMENT AGREEMENT
		

		
			THIS EMPLOYMENT AGREEMENT (this “Agreement”) is dated as of September , 2017, by and among Meridian Bank, a Pennsylvania banking institution (the “Company”) which has its principal place of business at 9 Old Lincoln Highway, Malvern, Pennsylvania 19355, and Christopher J. Annas (the “Executive”).
		

		
			WHEREAS, Executive and the Company are parties to that certain [Amended and Restated] Employment Agreement dated as of [_____] (the “Prior Agreement”);
		

		
			WHEREAS, Executive and the Company wish to terminate the Prior Agreement and enter into this Agreement.
		

		
			NOW THEREFORE, the parties hereto agree as follows:
		

		
			1.         Termination of Prior Agreement;  Term of Agreement; Restrictions on Payment.
		

		
			1.1       Termination of Prior Agreement. Effective as of the date hereof (the “Effective Date”), the Prior Agreement shall be terminated and no longer have any force or effect. This Agreement shall supersede the Prior Agreement in its entirety, and each party to the Prior Agreement shall have no further obligations under the Prior Agreement. Executive hereby acknowledges and agrees that the Executive is not entitled to any payments, benefits or anything else of value (including, but not limited to, the acceleration of any payments, awards or other benefits) under the Prior Agreement as a result of, or in connection with, the termination thereof.
		

		
			1.2       Term. The Company hereby employs the Executive, and the Executive hereby accepts such employment, for a term commencing as of the Effective Date and ending on December 31, 2020, with such arrangement to continue for successive one-year periods in accordance with the terms of this Agreement unless the Company or the Executive notifies the other of non-renewal in writing prior to three (3) months before the expiration of the initial term and each annual renewal, as applicable. (The period during which the Executive provides services hereunder being hereinafter referred to as the “Term.”) Notwithstanding the foregoing, the Executive’s employment may be terminated during the Term in accordance with Sections 4 and 5. In the event that such notice is provided by Executive or the Company, the Company may require in its sole discretion that Executive cease reporting to work and/or to cease performing duties, in whole or in part, during all or any portion of said notice period.
		

		
			1.3       Special Termination Provisions. If (i) the Company is in default, as defined in Section (3)(x)(1) of the Federal Deposit Insurance Act, (ii) the Federal Deposit Insurance Corporation (or its successor) (the “FDIC”) or a court appoints a conservator or receiver for the Company or (iii) the Pennsylvania Department of Banking takes possession of the Company, then all obligations of the Company under this Agreement (other than any vested rights of the Executive) shall be terminated, except, to the extent it is determined that continuation of the Agreement is necessary for the continued operation of the Company:
		

		
			

		 

 

		

		
			(a)        by the Board of Directors (the “FDIC Board”) of the FDIC or its designee, at the time the FDIC enters into an agreement to provide assistance to or on behalf of the Company under the authority of the Federal Deposit Insurance Act; or
		

		
			(b)        by the FDIC Board or its designee, at the time the FDIC Board or its designee approves a supervisory merger to resolve problems relating to the operation of the Company or when the Company is determined by the FDIC Board or its designee to be in an unsafe or unsound condition.
		

		
			1.4       Regulatory Payment Restrictions. If any payment hereunder is determined by the Compensation Committee of the Board (in its reasonable discretion) to violate any regulatory requirement applicable to the Company, the Company may decline to make such payment or amend the amount or timing of such payment to comply with such regulatory requirements, including the requirements of 12 U.S.C. 1828(k) and 12 C.F.R. part 359, which shall not constitute a breach of this Agreement. The application of this Section 1.4 shall not constitute a termination this Agreement or the Term, or “Good Reason” under this Agreement and shall not entitle Executive to any payments or benefits under this Agreement, including but not limited to the termination payments set forth in Section 5.2.
		

		
			2.         Duties, Positions and Related Matters.
		

		
			2.1       Duties and Positions. During the Term, the Executive shall (a) be employed by the Company as its President and Chief Executive Officer, and (b) have and perform all duties and responsibilities that are commensurate with such positions, including those that are assigned to Executive by the Board of Directors of the Company (the “Board”). Executive shall receive no additional compensation or benefits in respect of his service as a member of any board of directors of the Company or any Affiliate. Upon the termination of the Term, Executive shall resign as a member of the Board and as an officer, director and manager of the Company and any other Affiliate. As used throughout this Agreement, “Affiliate” or “Affiliates” means any party controlled by, under the control of, or under common control with, the Company.
		

		
			2.2       Outside Activities. During the Term, and excluding any periods of vacation and sick leave to which the Executive may be entitled, the Executive agrees to devote his best efforts and full business time and attention to the business and affairs of the Company. Notwithstanding the foregoing, during the Term, upon the prior written approval of the Compensation Committee of the Board (which shall not be unreasonably withheld), Executive may (A) serve on boards, committees or similar bodies of charitable or nonprofit organizations, (A) fulfill limited speaking engagements and (C) manage his personal investments, in each case, so long as such activities do not materially interfere or conflict with the performance of the Executive’s duties and responsibilities under this Agreement.
		

		
			2.3       Location. The Executive’s employment will be at the Company’s principal offices, currently located in Malvern, Pennsylvania, except for travel to other locations as may be necessary to fulfill Executive’s duties and responsibilities hereunder.
		

		
			3.         Compensation.
		

		
			
		

		
			

		 

		

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			3.1       Base Salary. The Company shall pay the Executive during the Term a base salary at a minimum rate of $425,000 per annum beginning on the Effective Date (the “Base Salary”), in accordance with the customary payroll practices of the Company applicable to senior executives. The Compensation Committee of the Board may periodically review the Executive’s Base Salary and may provide for such increases therein as it may, in its discretion, deem appropriate. (Any such increased base salary shall constitute the “Base Salary” as of the time of the increase.)
		

		
			3.2       Performance Bonus. During the Term, in addition to the Base Salary, for each fiscal year of the Company ending during the Term, the Executive shall have the opportunity to receive an annual bonus in an amount and on such terms to be determined by the Compensation Committee of the Board (“Performance Bonus”). For the calendar year ending December 31, 2017, the Performance Bonus opportunity shall be $100,000. Whether any Performance Bonus is awarded to the Executive for said period or thereafter, the amount thereof, or whether the Performance Bonus opportunity should be increased (including with respect to said period), shall be determined by the Compensation Committee of the Board in its sole discretion. The Compensation Committee of the Board shall further have the discretion to grant Executive other bonuses in such amounts and on such terms as it shall determine in its sole discretion. Nothing contained in the foregoing shall limit the Executive’s eligibility to receive any other bonus under any other bonus plan, stock option or equity–based plan, or other policy or program of the Company.
		

		
			3.3       Equity Incentive Compensation. Executive shall be entitled to participate in any equity compensation plan of the Company in which he is eligible to participate, and may, without limitation, be granted in accordance with any such plan options to purchase shares of the Company’s common stock (“Common Stock”), shares of restricted stock, and/or other equity awards in the discretion of the Compensation Committee of the Board.
		

		
			3.4       Benefits. The Executive shall be permitted during the Term to participate in any group life, hospitalization or disability insurance plans, health programs, retirement plans, fringe benefit programs and other benefits and perquisites that may be available to other senior executives of the Company generally, in each case to the extent that the Executive is eligible under the terms of such plans or programs (collectively, the “Benefits Plans”).
		

		
			3.5       Vacation. During the Term, the Executive shall be entitled to vacation of no less than 25 business days per year, to be credited in accordance with ordinary Company policies.
		

		
			3.6       Expenses. The Company shall pay or reimburse the Executive for all ordinary and reasonable out-of-pocket expenses actually incurred (and, in the case of reimbursement, paid) by the Executive during the Term in the performance of the Executive’s services under this Agreement, in accordance with the Company’s policies regarding such reimbursements. The Company shall also pay or reimburse the Executive for all attorneys’ fees and other charges of counsel reasonably incurred by the Executive in connection with the negotiation and execution of this Agreement, promptly upon presentation of appropriate supporting documentation and in accordance with the expense reimbursement policy of the Company, up to the amount of $5,000.
		

		
			
		

		
			

		 

		

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			3.7       Supplemental Executive Retirement Deferred Compensation Plan. The Executive shall continue to be eligible to participate in the Supplemental Executive Retirement Deferred Compensation Plan adopted by the Company effective January 1, 2009 (as such plan may be amended from time to time in accordance with its terms).
		

		
			3.8       Clawback.  Executive agrees that the compensation and benefits provided by the Company under this Agreement or otherwise are subject to recoupment or clawback (i) under any applicable Company clawback or recoupment policy that is generally applicable to the Company’s executives, as may be in effect from time to time, or (ii) as required by law. Executive acknowledges that any such policy applies to compensation and benefits previously provided and that the Compensation Committee of the Board has discretion regarding applying the policy to compensation and benefits provided to Executive. Executive’s failure to timely make any repayment required by law or under any such policy shall constitute Executive’s material breach of this Agreement.
		

		
			4.         Termination upon Death or Disability. If the Executive dies during the Term, the Term shall terminate as of the date of death, and the obligations of the Company to or with respect to the Executive shall terminate in their entirety upon such date except as otherwise provided under this Section 4. If, during the Term, the Executive is unable to perform substantially and continuously the duties assigned to him due to a disability (as defined for purposes of the Company’s long-term disability plan then in effect or, if no such plan is in effect, by virtue of Executive’s ill health or other disability of  Executive) for more than 180 consecutive or non-consecutive days out of any consecutive 12-month period, the Company shall have the right, to terminate the Term and the employment of the Executive upon notice in writing to the Executive. Upon termination of the Term and the Executive’s employment due to death or disability during the Term, the Executive (or the Executive’s estate or beneficiaries in the case of the death of the Executive) shall be entitled to receive (A) any Base Salary earned through the date of termination, (B) any Performance Bonus determined by the Company to be earned and payable, but not yet paid in respect of any fiscal year completed before the date of termination, (C) all other rights and benefits earned and accrued or vested under this Agreement or under any plan, program, agreement, corporate governance document or arrangement of the Company (“Company Arrangements”) prior to the date of termination, and (D) reimbursement under this Agreement for expenses incurred prior to the date of termination, in each case in accordance with the terms and conditions applicable thereto (clauses (A) through (D) collectively, the “Accrued Benefits”). Executive (or the Executive’s estate or beneficiaries in the case of the death of the Executive) shall have no further rights to any other compensation or benefits hereunder, or any other rights hereunder (but, for the avoidance of doubt, shall receive such disability and death benefits as may be provided under the Company Arrangements in accordance with their terms).
		

		
			5.         Certain Terminations of Employment; Certain Benefits.
		

		
			5.1       Termination by the Company for Cause; Termination by the Executive without Good Reason.
		

		
			(a)        For purposes of this Agreement, “Cause” shall mean the Executive’s:
		

		
			
		

		
			

		 

		

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			(i)         commission of, or charge or indictment for (or formal admission to) a felony, or commission of and indictment for (or formal admission to) any crime of moral turpitude, dishonesty, breach of trust or unethical business conduct, or any crime involving the Company;
		

		
			(ii)       engagement in fraud, misappropriation or embezzlement or other conduct which is injurious to the Company or that harms the reputation or financial position of the Company;
		

		
			(iii)      disqualification, bar, order or similar requirement by any governmental regulatory authority from serving as an officer or director of the Company or the imposition of any cease and desist or similar order or directive by any governmental regulatory authority with regard to Executive’s duties or responsibilities as an officer or director of the Company;
		

		
			(iv)      obstruction or imposition of, attempting to influence, obstruct or impede, or failing to cooperate with, any investigation authorized by the Board or any governmental regulatory authority with regard to the Company;
		

		
			(v)       gross negligence in the performance of his duties or continued failure to perform his duties with the Company (other than any such failure resulting from the Executive’s disability);
		

		
			(vi)      failure to materially adhere to the directions of the Board or the Company’s written policies and practices;
		

		
			(vii)     breach of Executive’s fiduciary duties to the Company; or
		

		
			(viii)    material breach of any of the provisions of Section 3.8 or Section 6;
		

		
			provided, that the Company shall not be permitted to terminate the Executive for Cause pursuant to clauses (v) or (vi) above, unless (A) the Company has delivered a written notice to the Executive describing the event purporting to give rise to a termination for Cause within 30 days following the occurrence of any event described in clauses (v) or (vi) above (if the Board determines that the event is capable of being cured), and (B) the Board has made a determination that Cause exists (after the Executive has been provided with a 30-day opportunity to cure the event described in clauses (v) or (vi) above (if the Board determines that the event is capable of being cured)), or with the opportunity to contest the determination at a meeting of the Board) after 30 days following (but not more than 90 days following) the date the written notice described in clause (A) has been given.
		

		
			(b)        The Company may terminate the Term and the Executive’s employment hereunder for Cause with no notice (other than that set forth above), and the Executive may terminate the Term and his employment hereunder other than for Good Reason on at least 90 days’ written notice given to the Company. If the Company terminates the
		

		
			

		 

		

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			Executive for Cause, or the Executive terminates his employment and the termination by the Executive is not for Good Reason in accordance with Section 5.2, (i) the Executive shall receive the Accrued Benefits; and (ii) the Executive shall have no further rights to any other compensation or benefits under this Agreement on or after the termination of employment. Unless the payment is required to be delayed pursuant to Section 7.14(b) below, the cash amounts payable to the Executive under this Section 5.1(b) shall be paid to the Executive in a single-sum payment by wire transfer of immediately available funds within 60 days following the date of his termination of employment with the Company pursuant to this Section 5.1(b). In the event that notice is provided by Executive or the Company, the Company may require in its sole discretion that Executive cease reporting to work and/or to cease performing duties, in whole or in part, during all or any portion of said notice period.
		

		
			5.2       Termination by the Company without Cause; Termination by the Executive for Good Reason.
		

		
			(a)        For purposes of this Agreement, “Good Reason” shall mean, unless otherwise consented to by the Executive:
		

		
			(i)         a material diminution of the Executive’s title, authority, duties or responsibilities, or the assignment to the Executive of duties materially inconsistent with the Executive’s position or positions as President and Chief Executive Officer of the Company (except that placing Executive on a paid leave for up to 60 days during the course of an investigation involving Executive shall not constitute Good Reason);
		

		
			(ii)       a reduction in Base Salary to a rate of less than $425,000 per annum; or
		

		
			(iii)      the requirement that Executive relocate his office to a location that is more than 50 miles outside of Malvern, Pennsylvania;
		

		
			provided, that the Executive shall not be permitted to terminate his employment with Good Reason unless (A) the Executive has given written notice to the Company of such awareness or constructive awareness within 30 days thereof, stating in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive’s employment, that Executive intends to resign for Good Reason as a result thereof, and the date of termination if the condition is not corrected, (B) the Company has not cured such event within 30 days following its receipt of the Executive’s written notice, and (C) the Executive has provided a separate written notice of termination within 30 days following the end of the cure period provided in clause (B) above.
		

		
			(b)        The Company may terminate the Term and the Executive’s employment hereunder without Cause on at least 30 days’ written notice given to the Executive, and the Executive may terminate the Term and the Executive’s employment with the Company for Good Reason with the notice set forth above. In the event that such notice is provided by Executive or the Company, the Company may require in its sole discretion that Executive cease reporting to work and/or to cease performing duties, in whole or in part, during all or any portion
		

		
			
		

		
			

		 

		

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			of said notice period. Subject to Section 5.3, if the Company terminates Executive’s employment hereunder without Cause (other than under Section 4), or the Executive terminates his employment for Good Reason, in either case during the Term, then, in either such case, without duplication and subject to the requirements of Section 5.5 below:
		

		
			(i)        the Executive shall receive the Accrued Benefits;
		

		
			(ii)       the Executive shall receive a single-sum payment by wire transfer of immediately available funds in an amount equal to 200% of the Executive’s Base Salary and Performance Bonus opportunity in effect (if any) at the time of such termination; and
		

		
			(iii)      subject to Executive’s timely election of continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), and Executive’s continued copayment of premiums at the same level and cost to the Executive as if the Executive were an employee of the Company (excluding, for purposes of calculating cost, an employee’s ability to pay premiums with pre-tax dollars), the Company shall pay the same share of the premium it would have paid as if Executive were an employee of the Company, for continued participation in the Company’s group health plan (to the extent permitted under applicable law and the terms of such plan) which covers Executive for a period of 12 months at the Company’s expense, provided that Executive is eligible and remains eligible for COBRA coverage; and provided, further, that in the event that Executive obtains other employment that offers group health benefits, such COBRA payment by the Company shall immediately cease.
		

		
			Unless the payment is required to be delayed pursuant to Section 7.14(b) below, the cash amounts payable to the Executive under this Section 5.2(b) (other than Section 5.2(b)(iv)) shall be paid to the Executive within 60 days following the date of his termination of employment with the Company pursuant to this Section 5.2(b). In the event that the 60 day period following such termination spans two calendar years, the amounts payable to Executive under this Section 5.2(b) shall be paid in the later calendar year.
		

		
			For the avoidance of doubt, neither (a) the termination of the Company’s obligations and/or Executive’s employment under this Agreement pursuant to Section 1.3, nor (b) following a notification of non-renewal under Section 1.2, a termination of Executive’s employment at or after the expiration of the initial term or any annual renewal thereof, shall: (i) constitute a termination without Cause, (ii) constitute Good Reason, or (c) entitle Executive to any payment or other benefit under this Agreement.
		

		
			5.3       Change of Control. In the event of a “Change of Control” (as defined below) during the Term, if the Executive terminates his employment with the Company for Good Reason or the Company terminates Executive’s employment with the Company without Cause, in each case, within twelve (12) months following the date of a Change of Control that occurs during the Term, then, without duplication and subject to the requirements of Section 5.5 below:
		

		
			(i)         the Executive shall receive the Accrued Benefits;
		

		
			
		

		
			

		 

		

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			(ii)       the Executive shall receive a single-sum payment by wire transfer of immediately available funds in an amount equal to 300% of the Executive’s Base Salary and Performance Bonus opportunity in effect (if any) at the time of such termination; and
		

		
			(iii)      subject to Executive’s timely election of COBRA, and Executive’s continued copayment of premiums at the same level and cost to the Executive as if the Executive were an employee of the Company (excluding, for purposes of calculating cost, an employee’s ability to pay premiums with pre-tax dollars), the Company shall pay the same share of the premium it would have paid as if Executive were an employee of the Company, for continued participation in the Company’s group health plan (to the extent permitted under applicable law and the terms of such plan) which covers Executive for a period of 12 months at the Company’s expense, provided that Executive is eligible and remains eligible for COBRA coverage; and provided, further, that in the event that Executive obtains other employment that offers group health benefits, such COBRA payment by the Company shall immediately cease.
		

		
			For purposes of this Agreement, “Change of Control” shall mean the happening of any of the following:
		

		
			(a)        any “person,” including a “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), but excluding Executive, any Family Member of Executive, or any entity or person controlling, controlled by or under common control with Executive, any Family Member of Executive, the Company, any employee benefit plan of the Company or any such entity, and any “group” (as such term is used in Section 13(d)(3) of the Exchange Act) of which any of the foregoing persons or entities is a member (a “Related Person or Entity”), is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of either (i) the combined voting power of the Company’s then outstanding securities or (ii) the then outstanding Common Stock (in either such case other than as a result of an acquisition of securities directly from the Company) (for purposes hereof, “Family Member” means (x) a person’s spouse, parent, sibling and descendants (whether natural or adopted), (y) any family limited partnership, limited liability company or other entity wholly owned, directly or indirectly, by such person and/or such person’s spouse, parent, sibling and/or descendants (whether natural or adopted), and (z) any estate or trust for the benefit of such person and/or such person’s spouse, parent, sibling and/or descendants (whether natural or adopted));
		

		
			(b)        any consolidation or merger of the Company, other than with or into a Related Person or Entity, where the shareholders of the Company, immediately prior to the consolidation or merger, would not, immediately after the consolidation or merger, beneficially own (as such term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly, shares representing in the aggregate 50% or more of the combined voting power of the securities of the entity issuing cash or securities in the consolidation or merger (or of its ultimate parent entity, if any);
		

		
			(c)        there shall occur (i) any sale, lease, exchange or other transfer (in one transaction or a series of transactions contemplated or arranged by any party as a single plan) of all or substantially all of the assets of the Company, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to (x) an entity, at least 50% of the
		

		
			

		 

		

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			combined voting power of the voting securities of which are owned by “persons” (as defined above) who beneficially hold shares of Common Stock immediately prior to such sale, or (y) a Related Person or Entity, or (ii) the approval by shareholders of the Company of any plan or proposal for the liquidation or dissolution of the Company, as applicable; or
		

		
			(d)        members of the Board at the beginning of any consecutive 12- calendar-month period (the “Incumbent Directors”) cease for any reason, other than due to death, disability or compliance with any policy adopted by the Board regarding mandatory retirement age, to constitute at least a majority of the members of the Board; provided that any director whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of the members of the Board then still in office who were members of the Board at the beginning of such 12-calendar-month period, shall be deemed to be an Incumbent Director;
		

		
			provided,  however, that, in no event shall a Change of Control be deemed to have occurred upon a public offering of the Common Stock under the Securities Act of 1933, as amended.
		

		
			5.4       Parachutes.
		

		
			(a)        In the event that any payment or benefit received or to be received by Executive under this Agreement (all such payments and benefits being hereinafter referred to as the “Total Payments”) would not be deductible (in whole or part) by the Company as a result of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), then, to the extent necessary to make such portion of the Total Payments deductible, the portion of the Total Payments that do not constitute deferred compensation within the meaning of Section 409A of the Code shall first be reduced (if necessary, to zero), and all other Total Payments shall thereafter be reduced (if necessary, to zero), with cash payments being reduced before non-cash payments, and payments to be paid last being reduced first, but only if (i) the amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state and local income taxes on such reduced Total Payments) is greater than or equal to (ii) the amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state and local income taxes on such Total Payments and the amount of the excise tax imposed under Section 4999 of the Code (the “Excise Tax”) on such unreduced Total Payments).
		

		
			(b)        For purposes of this limitation, (i) no portion of the Total Payments the receipt or enjoyment of which Executive shall have waived at such time and in such manner as not to constitute a “payment” within the meaning of Section 280G(b) of the Code shall be taken into account; (ii) no portion of the Total Payments shall be taken into account which, in the opinion of tax counsel (“Tax Counsel”) reasonably acceptable to Executive and selected by the accounting firm which was, immediately prior to the Change of Control, the Company’s independent auditor (the “Auditor”), does not constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code, including by reason of Section 280G(b)(4)(A) of the Code; (iii) the severance payments payable to Executive pursuant to this Agreement shall be reduced only to the extent necessary so that the Total Payments (other than those referred to in clauses (i) or (ii) of this paragraph) in their entirety constitute reasonable compensation for services actually rendered within the meaning of Section 280G(b)(4)(B) of the Code or are otherwise not subject to disallowance as deductions by reason of Section 280G of the Code, in
		

		
			
		

		
			

		 

		

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			the opinion of Tax Counsel; and (iv) the value of any non-cash benefit or any deferred payment or benefit included in the Total Payments shall be determined by the Auditor in accordance with the principles of Sections 280G(d)(3) and (4) of the Code.
		

		
			5.5       Execution of Release. The Executive acknowledges that all payments and benefits due under this Section 5 (other than the Accrued Benefits) are subject to his execution and delivery to the Company of an effective agreement including a release of claims in a form prescribed by the Company (the “Termination Agreement”) within twenty-one (21) days (or, in the Company’s sole discretion, forty-five (45) days) following his cessation of employment, and the additional requirements that that Executive not revoke such Termination Agreement during any applicable revocation period, and continue to comply with Section 6 of this Agreement. The Termination Agreement shall include a general release of any and all rights and claims against the Company and any other persons or entities designated by the Company, that are in existence at the time of signing the Termination Agreement, whether they are known or not known by Executive, and, in the Company’s sole discretion, provisions requiring Executive: not to disparage or defame the Company, the other persons or entities released, and/or their respective products and services; to keep the Termination Agreement confidential; to comply with his obligations under this Agreement; and to reasonably cooperate with the Company in transitioning business matters and handling claims and litigation. If Executive fails to execute such Termination Agreement, or such Termination Agreement does not become irrevocable, all such payments and benefits set forth in this Section 5 (other than the Accrued Benefits) shall not be due or payable.
		

		
			5.6       No Mitigation. The Executive shall be under no obligation to seek other employment or to otherwise mitigate the obligations of the Company under this Agreement.
		

		
			6.         Covenants of the Executive.
		

		
			6.1       Confidentiality/Trade Secrets. The Executive acknowledges that (i) [the primary business of the Company is providing banking services to businesses, professionals and retail customers in the [the counties that comprise the Delaware Valley] (the “Business”); (ii) the Business is highly competitive; (iii) the Executive’s work for the Company has given and will continue to give him access to the confidential affairs and proprietary information of the Company; (v) the covenants and agreements of the Executive contained in this Section 6 are essential to the business and goodwill of the Company; and (vi) the Company would not have entered into this Agreement but for the covenants and agreements set forth in this Section 6. Accordingly, the Executive covenants and agrees during and after the period of the Executive’s employment at any time with the Company and its affiliates, the Executive (x) shall keep secret and retain in strictest confidence all confidential matters relating to the Company’s Business and the business of any of its affiliates and to the Company and any of its affiliates, learned by the Executive heretofore or hereafter directly or indirectly from the Company or any of its Affiliates (the “Confidential/Trade Secret Information”), and (y) shall not disclose such Confidential/Trade Secret Information to anyone outside of the Company except with the Company’s express written consent and except for Confidential/Trade Secret Information which is at the time of receipt or thereafter becomes publicly known through no wrongful act of the Executive or is received from a third party not under an obligation to keep such information confidential and without breach of this Agreement. Nothing in this Agreement is intended to or
		

		
			
		

		
			

		 

		

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			shall be interpreted: (x) to restrict or otherwise interfere with Executive’s obligation to testify truthfully in any forum; or (y) to restrict or otherwise interfere with Executive’s right and/or obligation to contact, cooperate with, provide information in confidence to, or testify or otherwise participate in any action, investigation or proceeding of, any government agency, commission or entity, including but not limited to the Equal Employment Opportunity Commission or the Securities and Exchange Commission. In addition, the Defend Trade Secrets Act of 2016 (the “Act”) provides that: “(1) An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that – (A) is made – (i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.” The Act further provides that: “(2) An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual – (A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order.”
		

		
			6.2       Noncompetition/Nonsolicitation.
		

		
			(a)        During Executive’s employment with the Company or any Affiliate and a period of two years following the end of said employment, regardless of the reason said employment ends, Executive shall not, directly or indirectly, own, be financially interested in, manage, operate, control, engage in, be employed by (whether as an employee, consultant, independent contractor or otherwise, and whether or not for compensation) or otherwise render services to or on behalf of, any person or business entity or organization, of whatever form, that competes with the Company or any of its Affiliates anywhere in the [counties that comprise the Delaware Valley] or anywhere else where the Company or any of its Affiliates is then doing business or planning to do business, including but not limited to, by way of example only, [to be inserted]. It is agreed and acknowledged that various financial technology services and/or products (commonly referred to as “fintech”) compete with the services and/or products provided by the Company.
		

		
			(b)        For a period of two years following the end of the Term, regardless of the reason the Term of this Agreement ends, Executive shall not, directly or indirectly:
		

		
			(i)         Direct or do any act or thing which may interfere with or adversely affect the relationship (contractual or otherwise) of the Company or any Affiliate with any Customer, Prospective Customer, vendor or contractor of the Company or any Affiliate, or otherwise induce or attempt to induce any Customer or Prospective Customer to cease doing business, not do business, reduce or otherwise limit its business with the Company or any Affiliate;
		

		
			(ii)       Solicit, aid or induce any Customer or Prospective Customer of the Company or any Affiliate to purchase goods or services then sold by the Company or any Affiliate from another person, firm, corporation or other entity or assist or aid any other persons or entity in identifying or soliciting any such Customer or Prospective Customer;
		

		
			
		

		
			

		 

		

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			(iii)      Conduct business with or accept business from any Customer or Prospective Customer, directly in competition with the Company or any Affiliate, or on behalf of any person or entity that is a competitor of the Company or any Affiliate;
		

		
			(iv)       Solicit, encourage, recruit or attempt to persuade any person to terminate his or her employment with the Company or any Affiliate, whether or not such employment is pursuant to a written agreement or is at-will; or
		

		
			(v)        Employ, retain or establish a business relationship with, or encourage or assist any person or entity to employ or establish a business relationship with, any individual who was employed by the Company or any Affiliate at any time during the preceding twelve-month period.
		

		
			For purposes of the this Agreement: (i) “Customer” shall mean those persons or entities for whom or which the Company or any Affiliate performed services or to whom or which the Company or any Affiliate sold or licensed products, during the prior two (2) years; and “Prospective Customer” shall mean persons or entities whose business was solicited by the Company or any Affiliate during the during the prior two (2) years.
		

		
			(c)        The Executive specifically acknowledges that the temporal and geographical limitations hereof, in view of the nature of the Business, are reasonable and necessary to protect the Company’s legitimate business interests.
		

		
			6.3       Return of Company Property. Executive acknowledges that all materials (including, without limitation, documents, drawings, models, apparatus, sketches, designs, lists, and all other tangible media of expression) furnished to Executive by Company or any Affiliate or that Executive creates or obtains in connection with his employment shall remain the property of Company. On termination of Executive’s employment with Company for whatever reason, or at the request of Company before termination, Executive agrees to promptly deliver to Company all records, files, computer disks, memoranda, documents, lists, materials and other information, whether or not they contain any Confidential/Trade Secret Information, including all copies, reproductions, summaries or excerpts thereof, then in Executive’s possession or control, whether prepared by Executive or others. Executive also agree to promptly return, upon termination or at any time upon Company’s request, any and all Company or Affiliate property issued to Executive, including, but not limited to, computers, tablets, facsimile transmission equipment, cellular phones, keys and credits cards, disks, drives or other electronic storage devices. Executive further agrees to download all Company-related electronically stored information (including but not limited to emails) from any personal computer and/or other storage devices or equipment, personal email accounts or cloud storage, and return all downloaded material or otherwise electronically stored information and completely remove all such electronically stored information from the hard drive of such personal computer and/or all other storage devices, personal email accounts or cloud storage, and certify in writing to the Company that Executive has done so.
		

		
			6.4       Rights and Remedies upon Breach. Executive acknowledge and agree that the Company’s and Affiliates’ remedies at law for a breach or threatened breach of any of the provisions of Sections 6.1, 6.2 or 6.3 of this Agreement would be inadequate and, in recognition
		

		
			
		

		
			

		 

		

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			of this fact, Executive agrees that, in the event of such a breach or threatened breach, in addition to any remedies at law, the Company and the Affiliates, without posting any bond, shall be entitled to obtain equitable relief in the form of specific performance, a temporary restraining order, a temporary or permanent injunction or any other equitable remedy which may then be available, including an equitable accounting of all earnings, profits and other benefits arising from such violation, which rights shall be cumulative and in addition to any other rights or remedies to which the Company and the Affiliates may be entitled. In the event of a breach or alleged breach by Executive of any of the provisions of Section 6.2, the restrictions contained in Section 6.2 shall be extended by a period of time equal to the period of such breach, it being the intention of the parties hereto that the running of the restriction period shall be tolled until such breach is resolved (including the period of any court proceedings necessary to stop such violation). Executive agree that the Affiliates are third party beneficiaries of this Agreement.
		

		
			6.5       Cooperation. Upon the receipt of reasonable notice from the Company (including outside counsel), Executive agrees that while employed by the Company and thereafter, Executive shall respond and provide information with regard to matters in which Executive has knowledge as a result of Executive’s employment with the Company, and will provide reasonable assistance to the Company any of the Affiliates, and its representatives in defense of any claims that may be made against the Company or the Affiliates, and will assist the Company or the Affiliates in the prosecution of any claims that may be made by the Company or the Affiliates, to the extent that such claims may relate to the period of Executive’s employment with the Company. Executive agrees to promptly inform the Company if Executive becomes aware of any lawsuits that may be filed or threatened against the Company or the Affiliates. Executive also agrees to promptly inform the Company (to the extent that Executive is legally permitted to do so) if the Executive is asked to assist in any investigation of the Company or the Affiliates, regardless of whether a lawsuit or other proceeding has then been filed against the Company or the Affiliates with respect to such investigation. Upon presentation of appropriate documentation, the Company shall pay or reimburse Executive for all reasonable out-of-pocket travel, duplicating or telephonic expenses incurred by the Executive in complying with this Section 6.5.
		

		
			7.         Other Provisions.
		

		
			7.1       Severability. The Executive acknowledges and agrees that (i) he has had an opportunity to seek advice of counsel in connection with this Agreement and (ii) Section 6.2 is reasonable in geographical and temporal scope and the other restrictions and requirements of this Agreement are reasonable in all other respects. If it is determined that any of the provisions of this Agreement or any part thereof, is determined by a court or arbitrator of competent jurisdiction to be invalid or unenforceable, the remainder of the provisions of this Agreement shall not thereby be affected and shall be given full effect, without regard to the invalid portions.
		

		
			7.2       Duration and Scope of Covenants. If any court or arbitrator of competent jurisdiction determines that any of the Executive’s covenants contained in this Agreement is unenforceable because of the duration or geographical scope of such provision, then, after such determination has become final and unappealable, the duration or scope of such provision, as the case may be, shall be reduced so that such provision becomes enforceable and, in its reduced form, such provision shall then be enforceable and shall be enforced.
		

		
			
		

		
			

		 

		

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			7.3       Enforceability; Jurisdiction; Arbitration. All disputes, claims, or controversies arising out of or in connection with Executive’s business relationship with the Company and any Affiliate, including but not limited to under this Agreement (except claims by Executive, the Company or any Affiliate with respect to Sections 6.1, 6.2 or 6.3, including for injunctive relief or declaratory judgment) including but not limited to those concerning workplace discrimination and all other statutory claims, shall be finally settled by arbitration before a single arbitrator who shall be a member of and recognized by the American Arbitration Association (the “AAA”) in accordance with the AAA Employment Arbitration Rules and Mediation Procedures then in effect. Any arbitration commenced by either party shall be held in Philadelphia, Pennsylvania. The requirement to arbitrate does not apply to the filing of an employment related claim, dispute or controversy with a federal, state or local administrative agency. However, Executive understands that by entering into this Agreement, Executive is waiving Executive’s right to have a court and a jury determine Executive’s rights, including under federal, state and local statutes prohibiting employment discrimination, including sexual harassment and discrimination on the basis of age, sex, race, color, religion, national origin, disability, veteran status or any other factor prohibited by governing law. The decision of the arbitrator shall contain findings of fact and conclusions of law, shall be final and binding, and shall not be appealable upon any grounds other than as permitted pursuant to the Federal Arbitration Act. The award, in the arbitrator’s discretion, may include reasonable attorney’s fees and costs. Judgment on the award may be entered, confirmed and enforced in any court of competent jurisdiction. There shall be no right or authority for any disputes, claims or controversies to be arbitrated on a class action or collective action basis or together with the claim of any other person.
		

		
			7.4       Notices. Any notice or other communication required or permitted hereunder shall be in writing and shall be given (and shall be deemed to have been duly given upon receipt) by delivery in person, by facsimile or E-mail (having obtained electronic delivery confirmation thereof), or by registered or certified mail (postage prepaid, return receipt requested) to the other party as follows:
		

		
			If to the Company, to:
		

		
			Meridian Bank
		

		
			9 Old Lincoln Highway
		

		
			Malvern, PA 19355
		

		
			Attention:
		

		
			Facsimile:
		

		
			E-mail:
		

		
			If to the Executive, to the most recent home address on file; 
		

		
			With a copy (which shall not constitute notice) to:
		

		
			 
		

		
			                                                  
		

		
			                                                  
		

		
			                                                  
		

		
			
		

		
			

		 

		

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			Facsimile:
		

		
			E-mail:
		

		
			Any such person may by notice given in accordance with this Section 7.4 to the other parties hereto designate another address or person for receipt by such person of notices hereunder.
		

		
			7.5       Entire Agreement. This Agreement contains the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, written or oral, with respect thereto, including, but not limited to, the Prior Agreement.
		

		
			7.6       Waivers and Amendments. This Agreement may be amended, superseded, canceled, renewed or extended, and the terms hereof may be waived, only by a written instrument signed by all parties. No delay on the part of any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any party of any such right, power or privilege nor any single or partial exercise of any such right, power or privilege, preclude any other or further exercise thereof or the exercise of any other such right, power or privilege.
		

		
			7.7       Governing Law and Forum. This Agreement shall be governed by and interpreted in accordance with the laws of the Commonwealth of Pennsylvania, without giving effect to any conflict of law provisions and without the aid of any canon, custom or rule of law requiring or suggesting construction against the drafter. Any court action instituted by Executive or on his behalf relating in any way to this Agreement or his employment with the Company shall be filed exclusively in federal or state court in Pennsylvania and Executive consents to the jurisdiction and venue of these courts in any action instituted by the Company against him. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect.
		

		
			7.8       Assignment. This Agreement is personal to the Executive and, without the prior written consent of the Company, shall not be assignable by the Executive otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of the Company, the Affiliates, and all and singularly, their successors and assigns. The Company may assign this Agreement to any Affiliate or to a successor to some or all of the business and/or assets of the Company, provided that the Company shall require such Affiliate or successor to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such assignment had taken place. Executive hereby agrees to and authorizes any such assignment by the Company. As used in this Agreement, in the event of an assignment of this Agreement, “Company” shall mean the Company and any successor to its business and/or assets, or any Affiliate, which assumes and agrees to perform the duties and obligations of the Company under this Agreement by operation of law or otherwise. Notwithstanding anything in this Agreement to the contrary, the Executive shall not be entitled to any payment or benefits under Sections 4 or 5 if: (i) Executive is offered employment with a successor to the Company or some or all of its business or assets, which agrees to assume this Agreement, Executive does not accept the offer and his employment ceases as a result thereof; or (ii) Executive is transferred or offered a transfer to an Affiliate which agrees to assume this Agreement, Executive does not accept the transfer or offer and his employment ceases as a result thereof.
		

		
			
		

		
			

		 

		

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			7.9       Withholding. The Company shall be entitled to withhold from any payments or deemed payments any amount of tax withholding it determines to be required by law.
		

		
			7.10     Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors, permitted assigns, heirs, executors and legal representatives.
		

		
			7.11     Counterparts. This Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original but all such counterparts together shall constitute one and the same instrument. Each counterpart may consist of two copies hereof each signed by one of the parties hereto.
		

		
			7.12     Survival. Anything contained in this Agreement to the contrary notwithstanding, the provisions of Sections 1.3, 1.4, 2.1, 3.8, 4, 5, 6 and 7 and any other provisions of this Agreement expressly imposing obligations that survive termination of the Term and Executive’s employment hereunder, shall survive termination of the Term and this Agreement and any termination of the Executive’s employment hereunder.
		

		
			7.13     Existing Agreements. The Executive represents to the Company that he is not subject or a party to any employment or consulting agreement, non-competition covenant or other agreement, covenant or understanding which might prohibit him from executing this Agreement or limit in any manner whatsoever his ability to fulfill his responsibilities hereunder.
		

		
			7.14     Section 409A.
		

		
			(a)        Interpretation. Notwithstanding the other provisions hereof, this Agreement is intended to comply with the requirements of section 409A of the Code, to the extent applicable, and this Agreement shall be interpreted to avoid any penalty sanctions under section 409A of the Code. Accordingly, all provisions herein, or incorporated by reference, shall be construed and interpreted to comply with section 409A. If any payment or benefit cannot be provided or made at the time specified herein without incurring sanctions under section 409A of the Code, then such benefit or payment shall be provided in full at the earliest time thereafter when such sanctions will not be imposed. For purposes of section 409A of the Code, each payment made under this Agreement shall be treated as a separate payment. In no event may the Executive, directly or indirectly, designate the calendar year of payment.
		

		
			(b)        Payment Delay. Notwithstanding any provision to the contrary in this Agreement, if on the date of the Executive’s termination of employment, the Executive is a “specified employee” (as such term is defined in section 409A(a)(2)(B)(i) of the Code and its corresponding regulations) as determined by the Board (or its delegate) in its sole discretion in accordance with its “specified employee” determination policy, then all cash severance payments payable to the Executive under this Agreement that are deemed as deferred compensation subject to the requirements of section 409A of the Code shall be postponed for a period of six months following the Executive’s “separation from service” with the Company (or any successor thereto). The postponed amounts shall be paid to the Executive in a lump sum within 30 days after the date that is 6 months following the Executive’s “separation from service” with the
		

		
			
		

		
			

		 

		

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			Company (or any successor thereto). If the Executive dies during such six-month period and prior to payment of the postponed cash amounts hereunder, the amounts delayed on account of section 409A of the Code shall be paid to the personal representative of the Executive’s estate within 60 days after Executive’s death. If any of the cash payments payable pursuant to this Agreement are delayed due to the requirements of section 409A of the Code, there shall be added to such payments interest during the deferral period at an annualized rate of interest equal to 5%.
		

		
			(c)        Reimbursements. All reimbursements provided under this Agreement shall be made or provided in accordance with the requirements of section 409A, including, where applicable, the requirement that (i) any reimbursement is for expenses incurred during the Executive’s lifetime (or during a short period of time specified in this Agreement), (ii) the amount of expenses eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year, (iii) the reimbursement of all eligible expense will be made on or before the last day of the taxable year following the year in which the expense is incurred, and (iv) the right to reimbursement is not subject to the liquidation or exchange for another benefit.
		

		
			7.15     Headings. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.
		

		
			[Signature page follows]
		

		
			 
		

		
			 
		

		
			

		 

		

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			IN WITNESS WHEREOF, the parties hereto have signed their names as of the day and year first above written.
		

		
			 
		

		
			Meridian Bank
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						 

					
					
						    

					
					
						Name:

					
					
						 

					
					
						    

					
					
						Title:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Christopher J. Annas

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			 
		

		 

		

			18mrbk_Ex10_3

		
			Exhibit 10.3
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			MERIDIAN BANK
		

		
			SUPPLEMENTAL EXECUTIVE RETIREMENT
		

		
			DEFERRED COMPENSATION PLAN
		

		
			This document is drafted with the intent that it comply with Internal Revenue Code Section 40!JA and regulations promulgated thereunder.
		

		
			Renaissance Benefit Advisors has provided you this specimen document strictly in its capacity as an employee benefits consulting firm and plan recordkeeper. Renaissance Benefit Advisors does NOT provide legal, tax or accounting consultation or advice. It is Renaissance Benefit Advisors' recommendation that you seek appropriately specialized professional consultation regarding the information and/or material contained herein.
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			Copyright © Renaissance Benefit Advisors 2008 All rights reserved.
		

		
			 
		

		
			

		 

 

		

			 

		

		

		
			MERIDIAN BANK
		

		
			SUPPLEMENTAL EXECUTIVE RETIREMENT
		

		
			DEFERRED COMPENSATION PLAN
		

		
			Meridian Bank, a Pennsylvania corporation, and its affiliates and subsidiaries (the "Employer"), hereby adopts this Meridian Bank Supplemental Executive Retirement Deferred Compensation Plan (the "Plan") for the benefit of a select group of management or highly compensated employees. This Plan is an unfunded arrangement and is intended to be exempt from the participation, vesting, funding, and fiduciary requirements set forth in Title I of the Employee Retirement Income Security Act of 1974, as amended. It is intended to comply with Internal Revenue Code Section 409A.
		

		
			Article 1 - Definitions
		

		
			1.1       Account
		

		
			The sum of all the bookkeeping sub-accounts as may be established on the books of the Employer for the purpose of recording amounts credited on behalf of each Participant as provided in Section 5.1 hereof.
		

		
			1.2       Administrator
		

		
			An administrative committee appointed by the Board. The Plan Administrator shall serve as the agent for the Employer with respect to the Trust.
		

		
			1.3       Board
		

		
			The Board of Directors of the Employer.
		

		
			1.4       Bonus
		

		
			Compensation which is designated as such by the Employer and which relates to services performed during an incentive period by an Eligible Employee in addition to his or her Salary, including any pretax elective deferrals from said Bonus to any Employer sponsored plan that includes amounts deferred under a Deferral Election or any elective deferral as defined in Code Section 402(g)(3) or any amount contributed or deferred at the election of the Eligible Employee in accordance with Code Section 125 or 132(f)(4).
		

		
			1.5       Change-in-Control
		

		
			Provided that such term shall be interpreted within the meaning of regulations promulgated under Code Section 409A, a "Change-in-Control" of the Employer (which, for purpose of this Section 1.5 shall mean Meridian Bank but not any of its affiliates or subsidiaries) shall mean the first to occur of any of the following:
		

		
			(a)          "Change in Ownership"; the date that any one person or persons acting as a group, as defined in Treas. Reg. Section l.409A-3(i)(5)(v)(B), acquires ownership of Employer stock constituting more than fifty percent (50%) of the total fair market value or total voting power of the Employer;
		

		
			
		

		
			

		 

		

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			(b)          "Change in Effective Control"; the date that any one person or persons acting as a group, as defined in Treas. Reg. Section l.409A-3(i)(5)(v)(B), acquires (or has acquired during the 12-month period ending on the (i) date of the most recent acquisition by such person or persons) ownership of the stock of the Employer possessing thirty percent (30%) or (ii) more of the total voting power of the stock of the Employer;
		

		
			(c)          "Change in Ownership of a Substantial Portion of the Assets of the Company"; the date that any one person or persons acting as a group, defined in Treas. Reg. Section l.409A-3(i)(5)(v)(B), acquires (or has acquired during the 12-month period  ending on the date of the most recent acquisition by such person or persons) assets from the Employer that have a total gross fair market value equal to or more than forty percent (40%) of the total gross fair market value of all of the assets of the Employer immediately prior to such acquisition; or
		

		
			(d)          the date that a majority of members of the Employer's Board is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or elections.
		

		
			1.6       Code
		

		
			The Internal Revenue Code of 1986, as amended.
		

		
			1.7       Compensation
		

		
			The Participant's earned income, including Salary, Bonus, Performance-based Compensation, and other remuneration, excluding severance, from the Employer as may be included by the Administrator. For purposes of determining who a "key employee" is pursuant to Section 1.27 only, Compensation shall have the meaning ascribed to it in Code Section 415 and Regulations promulgated thereunder.
		

		
			1.8       Deferrals
		

		
			The portion of Compensation that a Participant elects to defer in accordance with Section 3.1 hereof.
		

		
			1.9       Deferral Election
		

		
			The separate agreement, submitted to the Administrator, by which an Eligible Employee agrees to participate in the Plan and is evidence of an irrevocable election to make Deferrals under this Plan.
		

		
			1.10     Disability
		

		
			Provided that such term shall be interpreted within the meaning of regulations promulgated under Code Section 409A, a Participant shall be considered to have incurred a Disability if: (i) the Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months; (ii) the Participant is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months,  receiving  income replacement  benefits for a period of  not less than 3 months under
		

		
			
		

		
			

		 

		

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			an accident and health plan covering employees of the Participant's Employer; or (iii) determined to be totally disabled by the Social Security Administration.
		

		
			1.11     Effective Date
		

		
			January 1, 2009
		

		
			1.12     Eligible Employee
		

		
			An Employee shall be considered an Eligible Employee if such Employee is a member of a "select group of management or highly compensated employees," within the meaning of Sections 201, 301 and 401 of ERISA, and is designated as an Eligible Employee by the Administrator. The Administrator may at any time, in its sole discretion, change the eligible criteria for an Eligible Employee or determine that one or more Participants will cease to be an Eligible Employee. The designation of an Employee as an Eligible Employee in any year shall not confer upon such Employee any right to be designated as an Eligible Employee in any future Plan Year.
		

		
			1.13     Employee
		

		
			Any person employed by the Employer.
		

		
			1.14     Employer
		

		
			Meridian Bank and its subsidiaries and affiliates.
		

		
			1.15     Employer Discretionary Contribntion
		

		
			A discretionary contribution made by the Employer that is credited to one or more Participant's Accounts in accordance with the terms of Section 3.8 hereof.
		

		
			1.16     Employer Supplemental Contribution
		

		
			A contribution made by the Employer that is credited to one or more Participant's Accounts in accordance with the terms of Section 3.7 hereof.
		

		
			1.17     ERISA
		

		
			The Employee Retirement Income Security Act of 1974, as amended.
		

		
			1.18     Investment Fund
		

		
			Each investment(s) which serves as a means to measure value, increases or decreases with respect to a Participant's Accounts.
		

		
			1.19     Matching Contribution
		

		
			A contribution made by the Employer that is credited to one or more Participant's Accounts in accordance with the terms of Section 3.6 hereof.
		

		
			1.20     Participant
		

		
			An Eligible Employee who is a Participant as provided in Article 2.
		

		
			
		

		
			

		 

		

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			1.21     Performance-based Compensation
		

		
			Provided that such term shall be interpreted within the meaning of regulations promulgated under Code Section 409A, "Performance-based Compensation" shall mean compensation that (i) meets the definition of Code Section 409A(a)(4)(B)(iii) and related guidance and regulations, (ii) is designated as such by the Employer and relates to services performed during a performance period of at least twelve months by an Eligible Employee, including any pretax elective deferrals from said Performance-based Compensation to any Employer sponsored plan that includes amounts deferred under a Deferral Election or any elective deferral as defined in Code Section 402(g)(3) or any amount contributed or deferred at the election of the Eligible Employee in accordance with Code Section 125 or 132(f)(4).
		

		
			1.22     Plan Year
		

		
			For the initial Plan Year, Effective Date through December 31, 2008. For each year thereafter, January 1 through December 31.
		

		
			1.23     Retirement
		

		
			Retirement means a Participant has reached age sixty-five (65) and has a Separation from Service.
		

		
			1.24     Salary
		

		
			An Eligible Employee's base salary earned during a Plan Year, including any pretax elective deferrals from said Salary to any Employer sponsored plan that includes amounts deferred under a Deferral Election or any elective deferral as defined in Code Section 402(g)(3) or any amount contributed or deferred at the election of the Eligible Employee in accordance with Code Section 125 or 132(f)(4).
		

		
			1.25     Separation from Service
		

		
			Provided that such term shall be interpreted within the meaning of regulations promulgated under Code Section 409A, a Participant shall incur a Separation from Service with the Service Recipient due to death, retirement or other termination of employment with the Service Recipient unless the employment relationship is treated as continuing intact while the individual is on military leave, sick leave, or other bona fide leave of absence if the period of such leave does not exceed six (6) months, or if longer, so long as the individual retains a right to reemployment with the Service Recipient under an applicable statute or by contract. If the period of Participant's leave exceeds six (6) months and the Participant has no right to reemployment, a Separation from Service shall be deemed to have occurred on the first date following the six (6) month period. Upon a sale or other disposition of the assets of the Employer to an unrelated purchase, the Administrator reserves the right, to the extent permitted by Code section 409A to determine whether Participants providing services to the purchaser after and in connection with the purchase transaction have experienced a Separation from Service.
		

		
			1.26     Service Recipient
		

		
			Provided that such term shall be interpreted within the meaning of regulations promulgated under Code Section 409A, Service Recipient shall mean the Employer or person for whom the services are performed and with respect to whom the legally binding right to
		

		
			
		

		
			

		 

		

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			compensation arises, and all persons with whom such person would be considered a single employer under Code Section 414(b) (employees of controlled group of corporations), and all persons with whom such person would be considered a single employer under Code Section 414(c) (employees of partnerships, proprietorships, etc., under common control).
		

		
			1.27     Specified Employee
		

		
			Provided that such term shall be interpreted within the meaning of regulations promulgated under Code Section 409A, a "Specified Employee" shall mean a Participant  who  on the date of his or her "Separation from Service" is considered a "Key Employee", as defined under Code Section 416(i) without regard to section 416(i)(5) and such other requirements imposed under Code Section 409A(a)(2)(B)(i) and regulations thereunder for the period beginning April 1 of the year subsequent to the Identification Date and ending March 31 of the following year. The Identification Date for this Plan is December 31 of each year. For purposes of determining who is an "officer" under Code Section 416(i), the guidance under Treas. Reg. Section 1.416-1 (Question T-13) shall be used. Notwithstanding anything to the contrary, a Participant is not a Specified Employee unless any stock of the Service Recipient is publicly traded on an established securities market (as defined in Treas. Reg. Section 1-897-l(m) or otherwise.
		

		
			1.28     Trust
		

		
			In the event of Trust usage, the agreement between the Employer and the Trustee under which the assets of the Plan are held, administered and managed, which shall conform to the terms of Rev. Proc. 92-64.
		

		
			1.29     Trustee
		

		
			In the event of a Trust, the initial Trustee shall be the named Trust administrator, or such other successor that shall become trustee pursuant to the terms of the Plan.
		

		
			1.30     Years of Service
		

		
			A Participant's "Years of Service" shall be measured by employment during a twelve (12) month period commencing with the Participant's date of hire and anniversaries thereof.
		

		
			Article 2 - Participation
		

		
			2.1       Commencement of Participation
		

		
			Each Eligible Employee shall become a Participant at the earlier of the date on which his or her Deferral Election first becomes effective or the date on which an Employer Supplemental or Employer Discretionary Contribution is first credited to his or her Account.
		

		
			2.2       Loss of Eligible Employee Status
		

		
			A Participant who is no longer an Eligible Employee shall not be permitted to submit a Deferral Election and all Deferrals for such Participant shall cease as of the end of the Plan Year in which such Participant is determined to no longer be an Eligible Employee. Amounts credited
		

		
			
		

		
			

		 

		

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			to the Account of a Participant who is no longer an Eligible Employee shall continue to be held pursuant to the terms of the Plan and shall be distributed as provided in Article 6.
		

		
			Article 3 - Contributions
		

		
			3.1       Deferral Elections - General
		

		
			A Participant's Deferral Election for a Plan Year is irrevocable for that applicable Plan Year; provided, however that a cessation of Deferrals shall be allowed if required by the terms of the Employer's qualified 401(k) plan in order for the Participant to obtain a hardship withdrawal from the 401(k) plan, or if required under Section 6.10 (Unforeseeable Emergency) of this Plan. Such amounts deferred under the Plan shall not be made available to such Participant, except as provided in Article 6, and shall reduce such Participant's Compensation from the Employer in accordance with the provisions of the applicable Deferral Election; provided, however, that all such amounts shall be subject to the rights of the general creditors of the Employer as provided in Article 8. The Deferral Election, in addition to the requirements set forth below, must designate: (i) the amount of Compensation to be deferred, (ii) the time of the distribution, and (iii) the form of the distribution.
		

		
			3.2       Time of Election
		

		
			A Deferral Election shall be void if it is not made in a timely manner as follows:
		

		
			(a)          A Deferral Election with respect to any Compensation must be submitted to the Administrator before the beginning of the calendar year during which the amount to be deferred will be earned. As of December 31 of each calendar year, said Deferral Election is irrevocable for the calendar year.
		

		
			(b)          Notwithstanding the foregoing and in the discretion of the Employer, in a year in which an Employee is first eligible to participate, and provided that such Employee is not eligible to participate in any other similar account balance arrangement aggregated with the elective deferral portion of the Plan under Code Section 409, such Deferral Election shall be submitted within thirty (30) days after the date on which an Employee is first eligible to participate, and such Deferral Election shall apply to Compensation to be earned during the remainder of the calendar year after such election is made.
		

		
			(c)          Notwithstanding the foregoing and in the discretion of the Employer, a Deferral Election with respect to any Performance-based Compensation may be submitted by the Eligible Employee or Participant provided that such Deferral Election is submitted at least six (6) months prior to the end of the performance period on which the Performance-based Compensation is based. Provided, that the Eligible Employee is employed continuously from the later of the beginning through the date the election is made to defer such Performance-based Compensation and the amount of such Performance-based Compensation has not become readily ascertainable as of the date of the Deferral Election.
		

		
			 
		

		
			
		

		
			

		 

		

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			3.3       Distribution Elections
		

		
			At the time a Participant makes a Deferral Election, he or she must also elect the time and form of the distribution by establishing one or more In-Service Account(s) or Retirement Account(s) as provided in Sections 5.1 and 6.1. 1f the Participant fails to properly designate the time and form of a distribution, the Participant's Account shall be designated as a Retirement Account and shall be paid in a lump sum. Notwithstanding anything to the contrary, All Supplemental Employer Contributions shall be allocated to a Participant's Retirement Account and shall be distributed in annual installments over a 10 year period.
		

		
			3.4       Additional Requirements
		

		
			The Deferral Election, subject to the limitations set forth in Sections 3.1 and 3.2 hereof, shall comply with the following additional requirements, or as otherwise required by the Administrator in its sole discretion:
		

		
			(a)          Deferrals may be made in whole percentages or stated dollar amounts with such limitations as determined by the Administrator.
		

		
			(b)          The maximum amount that may be deferred each Plan Year is twenty-five percent (25%) of the Participant's Salary and one-hundred percent (100%) of the Participant's Bonus or Performance-based Compensation, net of applicable taxes.
		

		
			3.5       Cancellation of Deferral Election due to Disability
		

		
			Notwithstanding anything to the contrary, if a Participant incurs a disability as defined in this Section 3.5, said Participant may file an election to stop Deferrals as of the date the election is received by the Administrator, provided that such cancellation occurs by the later of the end of the calendar year or the 15th day of the third month following the date the Participant incurs a disability. Disability for purposes of this Section 3.5 only means that a Participant incurs a medically determinable physical or mental impairment resulting in the Participant's inability to perform the duties of his or her position or any substantially similar position, where such impairment can be expected to result in death or can be expected to last for a continuous period of not less than six months, as determined by the Administrator in its sole discretion.
		

		
			3.6       Matching Contribution
		

		
			The Employer may, in its sole and absolute discretion, credit to the Account of each Participant who makes Deferrals a Matching Contribution in an amount equal to a percentage of the Deferrals contributed by the Participant, with such percentage determined annually by the Employer, in its sole and absolute discretion. In the event of a Matching Contribution, such Matching Contribution shall be credited to such sub-account(s) as may be elected by the Participant for his or her Salary Deferrals, or if no Salary Deferrals, then for Bonus Deferrals or Performance-based Compensation Deferrals in accordance with Section 5.1 and procedures established by the Plan Administrator.
		

		
			3.7       Employer Supplemental Contribution
		

		
			The Employer shall make an Employer Supplemental Contribution to the Account of all of the Participants. The amount of the Employer Supplemental Contribution to be credited to
		

		
			
		

		
			

		 

		

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			each Participant's Account shall be determined by the Employer and communicated to the Participant(s) annually. Such Employer Supplemental Contribution shall be credited to a Retirement sub-account maintained within the Participant's Account in accordance with Section 5.1 and procedures established by the Plan Administrator.
		

		
			3.8       Employer Discretionary Contributions
		

		
			The Employer reserves the right to make an Employer Discretionary Contribution to some or all Participants' Accounts in such amount and in such manner as may be determined by the Employer. Such Employer Discretionary Contribution shall be credited to a Retirement sub­ account maintained within the Participant's Account in accordance with Section 5.1 and procedures established by the Plan Administrator.
		

		
			3.9       Crediting of Contributions
		

		
			(a)          Salary Deferrals shall be credited to a Participant's Account, and if applicable transferred to the Trust, at such time as the Employer shall determine but no less frequently than at the close of each month. Bonus or Performance-based Compensation Deferrals, shall be credited to a Participant's Account, and if applicable transferred to the Trust, annually.
		

		
			(b)          In the event of the Employer providing for a Matching Contribution, the Matching Contribution shall be credited to a Participant's Account, and if applicable transferred to the Trust, at such time as the Employer shall determine but no less frequently than at the close of each month.
		

		
			(c)          Employer Supplemental Contribution(s) shall be credited to a Participant's Retirement sub account, and if applicable transferred to the Trust, as soon as administratively feasible following the close of each Plan Year.
		

		
			(d)          Employer Discretionary Contributions, if any, shall be credited to a Participant's Account, and if applicable transferred to the Trust, at such time as the Employer shall determine.
		

		
			Article 4 - Vesting
		

		
			4.1       Vesting of Deferrals
		

		
			A Participant shall be one-hundred percent (100%) vested in his or her Account attributable to Deferrals and any earning or losses on the investment of such Deferrals.
		

		
			4.2       Vesting of Matching Contributions
		

		
			Except as otherwise provided herein, a Participant shall be one-hundred percent (100%) vested to the portion of his or her Account attributable to Matching Contributions.
		

		
			4.3       Vesting of Employer Supplemental Contributions
		

		
			Unless otherwise provided by the Plan, a Participant shall have a vested right to the portion of his or her Account attributable to Employer Supplemental Contributions that are
		

		
			
		

		
			

		 

		

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			credited for a given Plan Year, and any earnings or losses on the investment of such Employer Contribution, in accordance with the following schedule:
		

			
					
						 

					
					
						 

				
	
					
						12 months after Crediting Date

					
					
						Vested Percentage

				
	
					
						Less than 12 months

					
25%
				
	
					
						12 but less than 24 months

					
50%
				
	
					
						24 but less than 36 months

					
75%
				
	
					
						36 or more

					
100%
				

		
			4.4       Vesting of Employer Discretionary Contributions
		

		
			A Participant shall have a vested right to the portion of his or her Account attributable to Employer Discretionary Contribution(s) and any earnings or losses on the investment of such Employer Discretionary Contribution( s) according to such vesting schedule as the Employer shall determine at the time an Employer Discretionary Contribution is made. Such vesting schedule shall be communicated in writing to the Participant following the crediting of such Employer Discretionary Contribution to a Participant's Account.
		

		
			4.5       Vesting in Event of Retirement, Disability, Death or Change-in-Control
		

		
			(a)          A Participant who incurs a Separation from Service due to Retirement shall be fully vested in the amounts credited to his or her Account as of the date of Retirement.
		

		
			(b)          A Participant who incurs a Separation from Service due to Disability shall be fully vested in the amounts credited to his or her Account as of the date of Disability.
		

		
			(c)          Upon a Participant's death, the Participant shall be fully vested in the amounts credited to his or her Account.
		

		
			(d)          Upon a Change-in-Control, all Participants shall be fully vested in the amounts credited to their Accounts as of the date of the Change-in-Control.
		

		
			4.6       Amounts Not Vested
		

		
			Any amounts credited to a Participant's Account that are not vested at the time of his or her Separation from Service shall be forfeited.
		

		
			Article 5 - Accounts
		

		
			5.1       Accounts
		

		
			The Administrator shall establish sub-accounts as provided in subsection (a) and (b), below, as elected by the Participant pursuant to Article 3. A Participant may have a maximum of ten (10) sub-accounts at any time.
		

		
			
		

		
			

		 

		

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			(a)          A Participant may establish one or more Retirement Account(s) ("Retirement sub-accounts") by designating as such on the Participant's Deferral Election. Each Participant's Retirement sub-account shall be credited with Deferrals (as specified in the Participant's Deferral Election), any Matching Contributions allocable thereto, any Employer Supplemental Contributions, Employer Discretionary Contributions and the Participant's allocable share of any earnings or losses on the foregoing. The Employer Supplemental Contribution and any Employer Discretionary Contribution shall only be allocated to a Retirement sub-account. Each Participant's Retirement sub-account shall be reduced by any distributions made plus any federal and state tax withholding and any social security withholding tax as may be required by law.
		

		
			(b)          A Participant may elect to establish one or more In-Service Accounts ("In- Service sub-accounts") by designating as such in the Participant's Deferral Election the year in which payment shall be made. Each Participant's In-Service sub-account shall be credited with Deferrals (as specified in the Participant's Deferral Election), any Matching Contributions allocable thereto, and the Participant's allocable share of any earnings or losses on the foregoing. Each Participant's In-Service sub-account shall be reduced by any distributions made plus any federal and state tax withholding and any social security withholding tax as may be required by law.
		

		
			5.2       Investments, Gains and Losses
		

		
			(a)          On an annual basis, a Participant's Account balance related to the Employer Supplemental Contribution will be credited with a fixed rate of interest applied to such Participant's Account balance. The fixed rate of interest shall be determined by the Employer, in its sole and absolute discretion, annually and communicated to the Participants within the first quarter of the applicable Plan Year. The Employer reserves the right to adjust the fixed rate of interest, in their sole and absolute discretion, at any point in a Plan Year. Any such adjustments shall be applied prospectively for the remainder of the Plan Year. The actual crediting of the fixed interest rate shall occur monthly within the applicable Plan Year and on such date as the Employer selects. Other amounts within the Participant's Account related to Deferrals, Matching Contributions and Employer Discretionary Contributions, as applicable, may have the aforementioned interest rate or notional investment gains or losses applied to such balances as provided for by the Employer in their sole and absolute discretion.
		

		
			(b)          The Administrator shall adjust the amounts credited to each Participant's Account to reflect, as appropriate and applicable, Deferrals, Matching Contributions, Employer Supplemental Contributions, any Employer Discretionary Contributions, interest crediting, notional investment gain or losses, distributions and any other appropriate adjustments. Such adjustments shall be made as frequently as is administratively feasible.
		

		
			
		

		
			

		 

		

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			Article 6 - Distributions
		

		
			6.1       Distribution Election
		

		
			Each Participant shall designate in his or her Deferral Election the form and timing of his or her distribution by indicating the type of sub-account as described under Section 5.1, and by designating the form in which payments shall be made from the choices available under Section 6.2 and 6.3 hereof. Notwithstanding anything to the contrary contained herein provided, no acceleration of the time or schedule of payments under the Plan shall occur except as permitted under both this Plan and Code Section 409A.
		

		
			6.2       Distributions Upon an In-Service Account Triggering Date
		

		
			To the extent applicable based on approved Deferrals and Matching Contributions, In­ Service sub-account distributions shall begin as soon as administratively feasible but no later than ninety (90) days following January 1 of the calendar year designated by the Participant on a properly submitted Deferral Election, and are payable in either a lump-sum payment or substantially equal armual installments, as described in Section 6.4 below, over a period of up to five (5) years as elected by the Participant in his or her Deferral Election. If the Participant fails to properly designate the form of the distribution, the sub-account shall be paid in a lump-sum payment.
		

		
			6.3       Distributions Upon Retirement
		

		
			If the Participant has a Separation from Service due to Retirement, the Participant's Retirement sub-account(s) shall be distributed as soon as administratively feasible but no later than ninety (90) days following the Participant's Retirement, subject to Section 6.11 (Distributions to Specified Employees). Distribution shall be made in substantially equal armual installments, as defined in Section 6.4 below, over a period of ten (10) years.
		

		
			6.4       Substantially Equal Annual Installments
		

		
			(a)           The amount of the substantially equal payments shall be determined by multiplying the Participant's Account or sub-account by a fraction, the denominator of which in the first year of payment equals the number of years over which benefits are to be paid, and the numerator of which is one (1). The amounts of the payments for each succeeding year shall be determined by multiplying the Participant's Account or sub-account as of the applicable armiversary of the payout by a fraction, the denominator of which equals the number of remaining years over which benefits are to be paid, and the numerator of which is one (1). Installment payments made pursuant to this Section 6.4 shall be made as soon as administratively feasible, but no later than ninety (90) days, following the armiversary of the distribution event.
		

		
			(b)          For purposes of the Plan pursuant to Code Section 409A and regulations thereunder, a series of armual installments shall be considered a single payment.
		

		
			6.5       Distributions due to other Separation from Service
		

		
			Upon a Participant's Separation from Service for any reason other than Retirement, death or Disability, all vested amounts credited to his or her Account shall be paid to the Participant in
		

		
			
		

		
			

		 

		

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			a lump-sum, as soon as administratively feasible, but no later than ninety (90) days, following the date of Separation from Service, subject to Section 6.11 (Distributions to Specified Employees).
		

		
			6.6       Distributions upon Separation from Service due to Disability
		

		
			Upon a Participant's Separation from Service due to Disability, all amounts credited to  his or her Account shall be paid to the Participant in a lump sum, as soon as administratively feasible but no later than ninety (90) days, following the date of Separation from Service, subject to Section 6.11 (Distributions to Specified Employees).
		

		
			6.7       Distributions upon Death
		

		
			Upon the death of a Participant, all amounts credited to his or her Account shall be paid, as soon as administratively feasible but no later than ninety (90) days following Participant's date of death, to his or her beneficiary or beneficiaries, as determined under Article 7 hereof, in a lump sum.
		

		
			6.8       Changes to Distribution Elections
		

		
			As applicable, a Participant will be permitted to elect to change the form or timing of the distribution of the balance of his or her one or more sub-accounts within his or her Account to the extent permitted and in accordance with the requirements of Code Section 409A(a)(4)(C), including the requirement that (i) a redeferral election may not take effect until at least twelve (12) months after such election is filed with the Employer, (ii) an election to further defer a distribution (other than a distribution upon death, Disability or an unforeseeable emergency) must result in the first distribution subject to the election being made at least five (5) years after the previously elected date of distribution, and (iii) any redeferral election affecting a distribution at a fixed date must be filed with the Employer at least twelve (12) months before the first scheduled payment under the previous fixed date distribution election. Unless otherwise expressly provided under this Plan or Code Section 409A, once a sub-account begins distribution, no such changes to distributions shall be permitted.
		

		
			6.9       Acceleration or of Delay in Payments
		

		
			To the extent permitted by Code Section 409A, and notwithstanding any provision of the Plan to the contrary, the Administrator, in its sole discretion, may elect to (i) accelerate the time or form of payment of a benefit owed to a Participant hereunder in accordance with the terms and subject to the conditions of Treasury Regulations Section l.409A-3(j)(4), or (ii) delay the time of payment of a benefit owed to a Participant hereunder in accordance with the terms and subject to the conditions of Treasury Regulations Section l.409A-2(b)(7). By way of example, and at the sole discretion of the Administrator, if a Participant's entire Account balance is less than the applicable Code Section 402(g)(l)(B) annual limit and any interest in all like plans,  as determined under Code Section 409A's plan aggregation rules, the Employer may distribute the Participant's Account in a lump sum provided that the distribution results in the termination of the participant's entire interest in the Plan.
		

		
			6.10     Unforeseeable Emergency
		

		
			The Administrator may permit an early distribution of part or all of any deferred amounts; provided, however, that such distribution shall be made only if the Administrator, in its sole
		

		
			
		

		
			

		 

		

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			discretion, determines that the Participant, or the Participant's beneficiary, has experienced an Unforeseeable Emergency. An Unforeseeable Emergency is defined as a severe financial hardship resulting from an illness or accident of the Participant, the Participant's spouse, Participant's beneficiary (as determined by Article 7) or a dependent (as defined in Code Section 152(a)) of the Participant, loss of the Participant's property due to casualty or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant. If an Unforeseeable Emergency is determined to exist, a distribution may not exceed the amounts necessary to satisfy such emergency plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution, after taking into account the extent to which such hardship is or may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the Participant's assets (to the extent the liquidation of such assets would not itself cause severe financial hardship) or by cessation of Deferrals under the Plan. Upon a distribution to a Participant under this Section 6.10, the Participant's Deferrals shall cease and no further Deferrals shall be made for such Participant for the remainder of the Plan Year.
		

		
			6.11     Distributions to Specified Employee
		

		
			Notwithstanding anything herein to the contrary, if any Participant is a Specified Employee upon a Separation from Service for any reason other than death, distributions to such Participant shall not commence until the first day of the seventh month following the date of Separation from Service (or, if earlier, the date of death of the Participant). If distributions are to be made in armual installments, the second installment and all those thereafter will be made on the applicable anniversaries of the Participant's Separation from Service.
		

		
			6.12     Delayed Distributions
		

		
			Notwithstanding anything herein to the contrary, if any Participant holds the title of Vice President or above (hereafter Group), provided that such Group includes no more than 200 Participants, upon a Separation from Service for any reason other than death, distributions to such Participant shall not commence until the first day of the seventh month following the date of Separation from Service (or, if earlier, the date of death of the Participant). If distributions are to be made in armual installments, the second installment and all those thereafter will be made on the applicable armiversaries of the Participant's Separation from Service.
		

		
			6.13     Minimum Distribution
		

		
			Notwithstanding any provision to the contrary, if the balance of a Participant's Account or sub-account at the time of a distribution event or at the time of a scheduled installment payment is $25,000 or less, then the Participant shall be paid his or her Account or sub-account as a single lump sum.
		

		
			6.14     Form of Payment
		

		
			All distributions shall be made in the form of cash.
		

		
			6.15     Separation from Service for Cause
		

		
			Notwithstanding anything to the contrary contained herein, in the event the Participant has an involuntary Separation from Service for Cause, Participant shall only receive the return of
		

		
			
		

		
			

		 

		

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			their Deferrals including the Participant's allocable share of any earnings or losses credited on those Deferrals pursuant to Section 5.2 and subject to Section 6.11 (Distributions to Specified Employees) above. Upon a Participant's Separation from Service for Cause, all amounts credited to Participant's Account amounts relating to Employer Matching Contribution(s), Employer Supplemental Contributions, Employer Discretionary Contribution(s), including the Participant's allocable share of any earnings or losses credited on the foregoing pursuant to Section 5.2, hereinabove, shall be forfeited back to the Employer. For purposes of this Plan, "Cause" shall mean (i) engaging in willful or grossly negligent misconduct that is materially injurious to the Company and/or affiliate, (ii) embezzlement or misappropriation of funds or property of the Company and/or affiliate, (iii) conviction of a felony or the entrance of a plea of guilty or nolo contendere to a felony, (iv) conviction of any crime involving fraud, dishonesty or breach of trust or the entrance of a plea of guilty or nolo contendere to such a crime, or (v) failure or refusal by the Participant to devote full business time and attention to the performance of his or her duties and responsibilities if such breach has not been cured within fifteen (15) days after written notice is given to the Participant.
		

		
			6.16     Domestic Relations Orders
		

		
			The Administrator may permit such acceleration of the time or schedule of a payment under the Plan to an individual other than a Participant or a payment under the Plan may be made to an individual other than the Participant to the extent necessary to fulfill a domestic relations order (as defined in Code Section 414(p)(l)(B)).
		

		
			6.17     Distributions Upon a Change-in-Control
		

		
			If elected by a Participant at the time of initial eligibility for the Plan on a form prescribed by the Administrator, all vested amounts credited to the Participant's Account as of the date of the Change-in-Control shall be paid in a lump sum as soon as administratively possible, but no later than ninety (90) days, following such Change-in-Control.
		

		
			Article 7 - Beneficiaries
		

		
			7.1       Beneficiaries
		

		
			Each Participant may from time to time designate one or more persons (who may be any one or more members of such person's family or other persons, administrators,  trusts, foundations or other entities) as his or her beneficiary under the Plan. Such designation shall be made in a form prescribed by the Administrator. Each Participant may at any time and from time to time, change any previous beneficiary designation, without notice to or consent of any previously designated beneficiary, by amending his or her previous designation in a form prescribed by the Administrator. If the beneficiary does not survive the Participant (or is otherwise unavailable to receive payment) or if no beneficiary is validly designated, then the amounts payable under this Plan shall be paid to the Participant's estate. If the beneficiary does not survive the Participant (or is otherwise unavailable to receive payment) or if no beneficiary is validly designated, then the amounts payable under this Plan shall be paid to the Participant's surviving spouse, or if no surviving spouse to the Participant's estate. If more than one person is the beneficiary of a deceased Participant, each such person shall receive a pro rata share of any death benefit payable unless otherwise designated in the applicable form.  If  a beneficiary who is
		

		
			
		

		
			

		 

		

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			receiving benefits dies, all benefits that were payable to such beneficiary shall then be payable to the estate of that beneficiary.
		

		
			7.2       Lost Beneficiary
		

		
			All Participants and beneficiaries shall have the obligation to keep the Administrator informed of their current address until such time as all benefits due have been paid. If a Participant or beneficiary cannot be located by the Administrator exercising due diligence, then, in its sole discretion, the Administrator may presume that the Participant or beneficiary is deceased for purposes of the Plan and all unpaid amounts (net of due diligence expenses) owed to the Participant or beneficiary shall be paid accordingly or, if a beneficiary cannot be so located, then such amounts may be forfeited. Any such presumption of death shall be final, conclusive and binding on all parties.
		

		
			Article 8 - Funding
		

		
			8.1       Prohibition Against Funding
		

		
			Should any investment be acquired in connection with the liabilities assumed under this Plan, it is expressly understood and agreed that the Participants and beneficiaries shall not have any right with respect to, or claim against, such assets nor shall any such purchase be construed to create a trust of any kind or a fiduciary relationship between the Employer and the Participants, their beneficiaries or any other person.  Any such assets shall be and remain a part of the general, unpledged, unrestricted assets of the Employer, subject to the claims of its general creditors. It is the express intention of the parties hereto that this arrangement shall be unfunded for tax purposes and for purposes of Title I of the ERISA. Each Participant and beneficiary shall be required to look to the provisions of this Plan and to the Employer itself for enforcement of any and all benefits due under this Plan, and to the extent any such person acquires a right to receive payment under this Plan, such right shall be no greater than the right of any unsecured general creditor of the Employer. The Employer or the Trust shall be designated the owner and beneficiary of any investment acquired in connection with its obligation under this Plan.
		

		
			8.2       Deposits in Trust
		

		
			Notwithstanding Section 8.1, or any other provision of this Plan to the contrary, the Employer may deposit into the Trust any amounts it deems appropriate to pay the benefits under this Plan. The amounts so deposited may include all contributions made pursuant to a Deferral Election by a Participant, all Matching Contributions, Employer Supplemental  Contributions, and any Employer Discretionary Contributions.
		

		
			8.3       Withholding of Employee Contributions
		

		
			The Administrator is authorized to make any and all necessary arrangements with the Employer in order to withhold the Participant's Deferrals under Section 3.1 hereof from his or her Compensation. The Administrator shall determine the amount and timing of such withholding.
		

		
			
		

		
			

		 

		

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			Article 9 - Claims Administration
		

		
			9.1       General
		

		
			If a Participant, beneficiary or his or her representative is denied all or a portion of an expected Plan benefit for any reason and the Participant, beneficiary or his or her representative desires to dispute the decision of the Administrator, he or she must file a written notification of his or her claim with the Administrator.
		

		
			9.2       Claims Procedure
		

		
			Upon receipt of any written claim for benefits, the Administrator shall be notified and shall give due consideration to the claim presented. If any Participant or beneficiary claims to be entitled to benefits under the Plan and the Administrator determines that the claim should be denied in whole or in part, the Administrator shall, in writing, notify such claimant within ninety (90) days (forty-five (45) days if the claim is on account of Disability) of receipt of the claim that the claim has been denied. The Administrator may extend the period of time for making a determination with respect to any claim for a period of up to ninety (90) days (thirty (30) days if claim is on account of Disability), provided that the Administrator determines that such an extension is necessary because of special circumstances and notifies the claimant, prior to the expiration of the initial ninety (90) day (or forty-five (45) day) period, of the circumstances requiring the extension of time and the date by which the Plan expects to render a decision. If the claim is denied to any extent by the Administrator, the Administrator shall furnish the claimant with a written notice setting forth:
		

		
			(a)          the specific reason or reasons for denial of the claim;
		

		
			(b)          a specific reference to the Plan provisions on which the denial is based;
		

		
			(c)          a description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary; and
		

		
			(d)          an explanation of the provisions of this Article.
		

		
			Under no circumstances shall any failure by the Administrator to comply with the provisions of this Section 9.2 be considered to constitute an allowance of the claimant's claim.
		

		
			9.3       Right of Appeal
		

		
			A claimant who has a claim denied wholly or partially under Section 9.2 may appeal to the Administrator for reconsideration of that claim. A request for reconsideration under this Section must be filed by written notice within sixty (60) days (one-hundred and eighty (180) days if the claim is on account of Disability) after receipt by the claimant of the notice of denial under Section 9.2.
		

		
			
		

		
			

		 

		

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			9.4       Review of Appeal
		

		
			Upon receipt of an appeal the Administrator shall promptly take action to give due consideration to the appeal. Such consideration may include a hearing of the parties involved, if the Administrator feels such a hearing is necessary. In preparing for this appeal the claimant shall be given the right to review pertinent documents and the right to submit in writing a statement of issues and comments. After consideration of the merits of the appeal the Administrator shall issue a written decision which shall be binding on all parties. The decision shall specifically state its reasons and pertinent Plan provisions on which it relies. The Administrator's decision shall be issued within sixty (60) days (forty-five (45) days if the claim is on account of Disability) after the appeal is filed, except that the Administrator may extend the period of time for making a determination with respect to any claim for a period of up one­ hundred and twenty (120) days (ninety (90) days if the claim is on account of Disability), provided that the Administrator determines that such an extension is necessary because of special circumstances and notifies the claimant, prior to the expiration of the initial one-hundred and twenty (120) day (or, if the claim is on account of Disability, initial ninety (90) day) period, of the circumstances requiring the extension of time and the date by which the Plan expects to render a decision. Under no circumstances shall any failure by the Administrator to comply with the provisions of this Section 9.4 be considered to constitute an allowance of the claimant's claim.
		

		
			In the case of a claim on account of Disability: (i) the review of the denied claim shall be conducted by an employee who is neither the individual who made the initial determination or a subordinate of such person; and (ii) no deference shall be given to the initial determination. For issues involving medical judgment, the employee must consult with an independent health care professional who may not be the health care professional who rendered the initial claim.
		

		
			9.5       Designation
		

		
			The Administrator may designate any other person of its choosing to make any determination otherwise required under this Article. Any person so designated shall have the same authority and discretion granted to the Administrator hereunder.
		

		
			Article 10 - General Provisions
		

		
			10.1     Administrator
		

		
			(a)          The Administrator is expressly empowered to limit the amount of Compensation that may be deferred; to deposit amounts into the Trust in accordance with Section 8.2 hereof; to interpret the Plan, and to determine all questions arising in the administration, interpretation and application of the Plan; to employ actuaries, accountants, counsel, and other persons it deems necessary in connection with the administration of the Plan; to request any information from the Employer it deems necessary to determine whether the Employer would be considered insolvent or subject to a proceeding in bankruptcy; and to take all other necessary and proper actions to fulfill its duties as Administrator.
		

		
			(b)        The Administrator shall not be liable for any actions by it hereunder, unless due to its own negligence, willful misconduct or lack of good faith.
		

		
			
		

		
			

		 

		

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			(c)        The Administrator shall be indemnified and saved harmless by the Employer from and against all personal liability to which it may be subject by reason of any act done or omitted to be done in its official capacity as Administrator in good faith in the administration of the Plan and Trust, including all expenses reasonably incurred in its defense in the event the Employer fails to provide such defense upon the request of the Administrator. The Administrator is relieved of all responsibility in connection with its duties hereunder to the fullest extent permitted by law, short of breach of duty to the beneficiaries.
		

		
			10.2     No Assignment
		

		
			Benefits or payments under this Plan shall not be subject in any manner to anticipation, alienation, sale, transfer, assigmnent, pledge, encumbrance, attachment, or garnishment by creditors of the Participant or the Participant's beneficiary, whether voluntary or involuntary, and any attempt to so anticipate, alienate, sell, transfer, assign, pledge, encumber, attach or garnish the same shall not be valid, nor shall any such benefit or payment be in any way liable for or subject to the debts, contracts, liabilities, engagement or torts of any Participant or beneficiary, or any other person entitled to such benefit or payment pursuant to the terms of this Plan, except to such extent as may be required by law. If any Participant or beneficiary or any other person entitled to a benefit or payment pursuant to the terms of this Plan becomes bankrupt or attempts to anticipate, alienate, sell, transfer, assign, pledge, encumber, attach or garnish any benefit or payment under this Plan, in whole or in part, or if any attempt is made to subject any such benefit or payment, in whole or in part, to the debts, contracts, liabilities, engagements or torts of the Participant or beneficiary or any other person entitled to any such benefit or payment pursuant to the terms of this Plan, then such benefit or payment, in the discretion of the Administrator, shall cease and terminate with respect to such Participant or beneficiary, or any other such person.
		

		
			10.3     No Employment Rights
		

		
			Participation in this Plan shall not be construed to confer upon any Participant the legal right to be retained in the employ of the Employer, or give a Participant or beneficiary, or any other person, any right to any payment whatsoever, except to the extent of the benefits provided for hereunder. Each Participant shall remain subject to discharge to the same extent as if this Plan had never been adopted.
		

		
			10.4     Incompetence
		

		
			If the Administrator, after consultation with appropriate professionals, determines that any person to whom a benefit is payable under this Plan is incompetent by reason of physical or mental disability, the Administrator shall have the power to cause the payments becoming due to such person to be made to another for his or her benefit without responsibility of the Administrator or the Employer to see to the application of such payments. Any payment made pursuant to such power shall, as to such payment, operate as a complete discharge of the Employer, the Administrator and the Trustee.
		

		
			10.5     Identity
		

		
			If, at any time, any doubt exists as to the identity of any person entitled to any payment hereunder or the amount or time of such payment, the Administrator shall be entitled to hold such sum until such identity or amount or time is determined or until an order of a court of
		

		
			
		

		
			

		 

		

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			competent jurisdiction is obtained. The Administrator shall also be entitled to pay such sum into court in accordance with the appropriate rules of law. Any expenses incurred by the Employer, Administrator, and Trust incident to such proceeding or litigation shall be charged against the Account of the affected Participant.
		

		
			10.6     Other Benefits
		

		
			The benefits of each Participant or beneficiary hereunder shall be in addition to any benefits paid or payable to or on account of the Participant or beneficiary under any other pension, disability, annuity or retirement plan or policy whatsoever.
		

		
			10.7     Expenses
		

		
			All expenses incurred in the administration of the Plan, whether incurred by the Employer or the Plan, shall be paid by the Employer.
		

		
			10.8     Insolvency
		

		
			Should the Employer be considered insolvent (as defined by the Trust), the Employer, through its Board and chief executive officer, shall give immediate written notice of such to the Administrator of the Plan and the Trustee. Upon receipt of such notice, the Administrator or Trustee shall cease to make any payments to Participants who were Employees of the Employer or their beneficiaries and shall hold any and all assets attributable to the Employer for the benefit of the general creditors of the Employer.
		

		
			10.9     Amendment or Modification
		

		
			The Employer may, at any time, in its sole discretion, amend or modify the Plan in whole or in part, except that no such amendment or modification shall have any retroactive effect to reduce any amounts allocated to a Participant's Accounts, and provided that such amendment or modification complies with Codes Section 409A and related regulations thereunder.
		

		
			10.10   Plan Suspension
		

		
			The Employer further reserves the right to suspend the Plan in whole or in part, except that no such suspension shall have any retroactive effect to reduce any amounts allocated to a Participant's Accounts, and provided that that distribution of the vested Participant Accounts shall not be accelerated but shall be paid at such time and in such manner as determined under the terms of the Plan immediately prior to suspension as if the Plan had not been suspended.
		

		
			10.11   Plan Termination
		

		
			The Employer further reserves the right to terminate the Plan in whole or in part, in the following manner, except that no such termination shall have any retroactive effect to reduce any amounts allocated to a Participant's Accounts, and provided that such termination complies with Codes Section 409A and related regulations thereunder:
		

		
			(a)        The Employer, in its sole discretion, may terminate the Plan and distribute all vested Participants' Accounts no earlier than twelve (12) calendar months from the date of the Plan termination and no later than twenty-four (24) calendar months from the date of the Plan termination, provided however that all other similar arrangements are also terminated by the
		

		
			
		

		
			

		 

		

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			Employer and no other similar arrangements are adopted by the Employer within a three year period from the date of termination; or
		

		
			(b)        The Employer may decide, in its sole discretion, to terminate the Plan in the event of a corporate dissolution taxed under Code Section 331, or with the approval of a bankruptcy court, provided that the Participants vested Account balances are distributed to Participants and are included in the Participants' gross income in the latest of: (i) the calendar year in which the termination occurs; (ii) the calendar year in which the amounts deferred are no longer subject to a substantial risk of forfeiture; or (iii) the first calendar year in which payment is administratively practicable.
		

		
			10.12   Plan Termination due to a Change-in-Control
		

		
			The Employer may decide, in its discretion, to terminate the Plan in the event of a Change-in-Control and distribute all vested Participants Account balances no earlier than thirty (30) days prior to the Change-in-Control and no later than twelve (12) months after the effective date of the Change-in-Control, provided however that the Employer terminates all other similar arrangements. Any corporation or other business organization that is a successor to the Employer by reason of a Change-in-Control shall have the right to become a party to the Plan by appropriate entity action. If within thirty (30) days from the effective date of the Change-in­ Control such new entity does not become a party hereto, as above provided, the full amount of the Participant's Account shall become immediately distributable to the Participant pursuant to this subsection.
		

		
			10.13   Construction
		

		
			All questions of interpretation, construction or application arising under or concerning the terms of this Plan shall be decided by the Administrator, in its sole and final discretion, whose decision shall be final, binding and conclusive upon all persons.
		

		
			10.14   Governing Law
		

		
			This Plan shall be governed by, construed and administered in accordance with the applicable provisions of ERISA, Code Section 409A, and any other applicable federal law, provided, however, that to the extent not preempted by federal law this Plan shall be governed by, construed and administered under the laws of the Commonwealth of Pennsylvania, other than its laws respecting choice of law.
		

		
			10.15   Severability
		

		
			If any provision of this Plan is held invalid or unenforceable, its invalidity or unenforceability shall not affect any other provision of this Plan and this Plan shall be construed and enforced as if such provision had not been included therein. If the inclusion of any Employee (or Employees) as a Participant under this Plan would cause the Plan to fail to comply with the requirements of sections 201(2), 30l(a)(3) and 401(a)(l) of ERISA, or Code Section 409A, then the Plan shall be severed with respect to such Employee or Employees, who shall be considered to be participating in a separate arrangement.
		

		
			
		

		
			

		 

		

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			10.16   Headings
		

		
			The Article headings contained herein are inserted only as a matter of convenience and for reference and in no way define, limit, enlarge or describe the scope or intent of this Plan nor in any way shall they affect this Plan or the construction of any provision thereof.
		

		
			10.17   Terms
		

		
			Capitalized terms shall have meanings as defined herein. Singular nouns shall be read as plural, masculine pronouns shall be read as feminine, and vice versa, as appropriate.
		

		
			10.18   Right of Setoff
		

		
			The Employer may, to the extent permitted by applicable law, deduct from and setoff against any amounts payable to a Participant from this Plan such amounts as may be owed by a Participant to the Employer, although the Participant shall remain liable for any part of the Participant's payment obligation not satisfied through such deduction and setoff; provided, however, that this setoff may occur only at the date on which the amount would otherwise be distributed to the Participant as required by Code Section 409A. By electing to participate in the Plan and deferring compensation hereunder, the Participant agrees to any deduction or setoff under this Section 10.18 which is allowed by law.
		

		
			IN WITNESS WHEREOF, Meridian Bank has caused this instrument to be executed by its duly authorized officer, effective as of this 13th day of March, 2009.
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Meridian Bank

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Christopher J. Annas

				
	
					
						 

					
					
						Title:

					
					
						CEO

				

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						ATTEST:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Erica H. Burns

					
					
						 

				
	
					
						Title:

					
					
						Corporate Secretary

					
					
						 

				

		
			 
		

		 

		

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