Document:

Exhibit 10.1

 

SEPARATION
AGREEMENT

 

This Separation
Agreement is made this 20th day of December, 2004, by and between MedQuist Inc.
(hereinafter the “Company”) and Ethan Cohen (hereinafter “Cohen”),
former Senior Vice President and Chief Technology Officer of the Company.

 

WHEREAS,
Cohen and the Company have agreed that Cohen’s employment with the Company
ended as of October 31, 2004; and

 

WHEREAS,
the parties desire to set forth the terms and conditions relating to Cohen’s
separation of employment with the Company.

 

NOW
THEREFORE, the parties, intending to be legally bound, in consideration of the
mutual promises and undertakings set forth herein, do hereby agree as follows:

 

1.                                       Cohen’s employment as Senior
Vice President and Chief Technology Officer and duties as an Officer of the
Company terminated on October 31, 2004 (the “Separation Date”).

 

2.                                       In accordance with his
Employment Agreement entered into as of the 22nd of May 2000, by and
between the Company and Cohen (the “Employment Agreement”), Cohen will
receive all accrued but unpaid salary through the Separation Date and
unreimbursed expenses incurred through the Separation Date.

 

3.                                       Effective November 1,
2004, Cohen may elect continued medical and dental coverage at his expense for
the time period permitted by COBRA, by completing the applicable COBRA forms
when sent to him.  As soon as practicable
following submission by Cohen of evidence of payment of the COBRA premium, the
Company shall reimburse Cohen for up to 18 months of COBRA continuation coverage
premiums.  Such reimbursements will be mailed
monthly to Cohen at Cohen’s home address of record.  Cohen
agrees to notify the Company immediately if he secures medical and dental
coverage through any other source during this 18 month period.  To the extent that Cohen or his wife is
required to pay a portion of the cost of medical and/or dental coverage for
Cohen, the Company will continue to reimburse Cohen for the portion of the cost
of medical and/or dental coverage paid by Cohen or his wife during the 18 month
period.  If Cohen is not required to pay
any part of the cost of other medical and/or dental coverage during the 18
month period, then the Company will stop making reimbursement payments to
Cohen.

 

4.                                       Cohen’s stock options, to
the extent vested as of the Separation Date, shall remain exercisable for the
post-termination exercise period provided in the option award agreements by and
between Cohen and the Company (each a “Stock Option Agreement”);
provided, however, that with respect to any of Cohen’s non-qualified Stock
Option Agreements and Cohen’s incentive Stock Option Agreement dated January 1,
2001, the post-termination exercise period set forth in such Stock Option
Agreements shall not begin to run (i.e., such period shall be tolled) until the
date, if ever, that the suspension is lifted for the exercise of options, upon
which event the Company will notify Cohen of the lifting of such suspension
along with and in the same manner as all other persons with Company stock
options.  No additional stock options
will vest following the Separation Date. 
Cohen’s participation in all Company 

 

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benefit plans shall cease as
of the Separation Date.  The options as
to which the exercise period is extended pursuant to the Agreement may be
subject to the provisions of section 409A of the Internal Revenue Code and
the regulations issued thereunder and, as such, Cohen may incur income tax
and/or penalties as a result of such extension.

 

5.                                       The Company and Cohen agree
that the time period set out is Section 9 (a)of the Employment Agreement
is hereby reduced to eighteen (18) months, that Section 9(a)(i) of the
Employment Agreement is hereby modified to prohibit the delineated
communications to those made directly or indirectly on behalf of a “Competing
Business,” that Section 9(a) (ii) of the Employment Agreement is hereby
modified to insert “or” before “entice” and to delete “hire[,]” and Section 9(a)(iii)
of the Employment Agreement is hereby modified to delete the following: “and health information management solutions
services[.]”  Except as specifically modified herein, Section 9
of the Employment Agreement (Restrictive Covenants and Confidentiality;
Injunctive Relief)and Section 10 (Survival), shall continue to apply in
full force and effect.

 

6.                                       Release.

 

a.                                       Cohen
hereby forever releases and discharges the Company, the Company’s past,
present, or future parent, affiliated, related, and/or subsidiary entities, and
all of their past, present and future directors, shareholders, officers,
general or limited partners, employees, agents, attorneys and representatives,
and the employee benefit plans in which Cohen is or has been a participant by
virtue of his employment with the Company (collectively, the “Company Releasees”),
from, and agrees hereby forever not to sue the Company Releasees with respect
to, any and all claims, debts, demands, accounts, judgments, rights, causes of
action, equitable relief, damages, costs, charges, attorneys’ fees, complaints,
obligations, promises, agreements, controversies, suits, expenses, any form of
compensation (including but not limited to salary, bonuses, commissions or
related fees), responsibility and liability of every kind and character
whatsoever, whether in law or equity, known or unknown, asserted or unasserted,
suspected or unsuspected, which Cohen has or may have had against the Company
Releasees based on any events or circumstances arising or occurring on or prior
to the date of this Agreement arising directly or indirectly out of, relating
to, or in any other way involving in any manner whatsoever, (i) Cohen’s
Employment Agreement or stock option agreements; (ii) Cohen’s employment with
the Company or the termination thereof, (iii) Cohen’s status at any time as a
holder of any securities of the Company, or (iv) without limitation, any and
all claims arising under federal, state, or local laws relating to employment,
or securities, including without limitation claims of wrongful discharge,
breach of express or implied contract, fraud, misrepresentation, defamation, or
liability in tort, claims of any kind that may be brought in any court or
administrative agency, any claims arising under Title VII of the Civil Rights
Act of 1964, the Age Discrimination in Employment Act (“ADEA,” a law
which prohibits discrimination on the basis of age), the Americans with
Disabilities Act, the Fair Labor Standards Act, the Employee Retirement Income
Security Act, the Family and Medical Leave Act, the Securities Act of 1933, the
Securities Exchange Act of 1934, the Sarbanes-Oxley Act, The New Jersey Law
Against Discrimination, New Jersey Conscientious Employee Protection Act, The
New Jersey Wage Payment and Collection Law and similar state or local statutes,
ordinances, and regulations; provided, that, notwithstanding anything to
the contrary set forth herein, this general release shall not extend to (x)
benefit claims under an employee pension 

 

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plan, the deferred compensation benefit plan or any other benefit plans
in which Cohen was a participant by virtue of his employment with the Company;
(y) indemnification rights Cohen may have by virtue of his status as a former
officer in accordance with applicable law and the Company’s by-laws and that certain
Undertaking dated August 30, 2004; and (z) any obligation of the Company
under this Separation Agreement.

 

b.                                      Except
for the survival and continuation of Cohen’s obligations as set forth in Section 5
of this Separation Agreement, the Company fully, forever, irrevocably and
unconditionally releases, remises, settles and discharges Cohen from any and
all manner of claims, charges, complaints, debts, liabilities, demands,
actions, causes of action, suits, rights, covenants, contracts, controversies, agreements,
promises, omissions, damages, obligations and expenses of any kind, whether
known or unknown, which it had, now has, or hereafter may have against Cohen
arising from, or relating in any way to Cohen’s employment by the Company,
except for actions by Cohen that constitute fraud or other intentional
misconduct.

 

c.                                       Cohen
understands that the release of claims he has given, as set forth in Section 6a
of this Agreement, includes a release of claims arising under the ADEA.  Cohen understands and warrants that he has
been given a period of 21 days to review and consider this Agreement.  By his signature below, Cohen warrants that
he has consulted with an attorney as to the terms of this Agreement.  Cohen further warrants that he understands
that he may accept and return the Agreement prior to the expiration of this
21-day review period, and, if he chooses to do so, he warrants that he used as
much of the 21-day review period as he required and returned the Agreement
knowingly and voluntarily and without any pressure or coercion on the part of
the Company or any of its representatives.

 

d.                                      Cohen
further warrants that he understands that he has seven (7) days after signing
this Agreement to revoke the Agreement by notice in writing to the Company’s
Human Resources Manager at Mount
Laurel, New Jersey, 08054-4632.  This Agreement shall be binding, effective,
and enforceable upon both parties upon the expiration of this seven (7) day
revocation period without the Company having received such revocation, but not before
such time.

 

7.                                       Provided Cohen has executed
this Agreement and the time period in Section 6c has expired, the Company
shall pay to Cohen, as consideration for executing this Agreement, payments in
a total amount equal to $364,336.50, less applicable withholding, which will be
paid as follows: an initial lump sum in the amount of $182,331.75 to be paid
within fourteen (14) days of Cohen’s execution of this Agreement and the
balance to be paid in twelve (12) equal monthly installments.  As Cohen’s employment terminated on October 31,
2004, the Company agrees that the initial installment payment to be paid in January 2005,
prior to January 15, 2005, shall include the monthly installment payments
for November 2004, December 2004 and January 2005. Thereafter, the
remaining nine (9) monthly installment payments made in accordance with this Section will
be mailed to Cohen at Cohen’s home address of record on or before the 15th
day of each month a payment is due.

 

8.                                       The parties acknowledge that
the sums and benefits set forth in Sections 3, 4, and 7 above represent amounts
in addition to anything of value to which Cohen is otherwise entitled and are
provided in consideration for the execution of this Agreement.

 

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9.                                       In response to any inquiries
from future or prospective employers concerning Cohen, it is agreed that the
parties will confirm only that Cohen resigned, dates of employment, titles of
positions held, and salary.

 

10.                                 Cohen agrees that he will
cooperate with the Company and its counsel with respect to any matter
(including litigation, investigation, or governmental proceeding) which relates
to matters with which Cohen was involved during the period in which he was
employed or engaged as a consultant by the Company, including full disclosure
of all relevant information and truthfully testifying on the Company’s behalf
in connection with any such proceeding or investigation.  Cohen will render such cooperation in a
timely manner and at such times and places as may be mutually agreeable to the
parties.  The Company agrees that any
request for cooperation to Cohen will be reasonable and will not be unduly
burdensome to Cohen.  Cohen agrees that
he will promptly notify the Company if he is contacted for an interview or if
he receives a subpoena in any matter relating in any way to his employment with the
Company and, in such event, the Company, upon request from Cohen, agrees to
provide in its discretion (not to be unreasonably withheld) reasonable access
to information and documents within its control.  Both the Company and Cohen further agree that
they will not initiate any communication with a member of the press regarding
Cohen’s employment with the Company and that if they are contacted by the press
for any such information, they will decline comment.  Upon submission of appropriate
documentation, Cohen shall be reimbursed by the Company for reasonable travel,
lodging, meals, and telecommunications expenses incurred in cooperating with
the Company under the terms of this provision. 
Notwithstanding
the above, Cohen retains the right to a good faith assertion of any applicable
privilege.

 

11.                                 The
parties agree that the terms of this Agreement shall remain completely
confidential, and that they will not disclose the terms of this Agreement to
any person, except that this Section shall not prohibit the parties from
disclosing the fact and terms of this Agreement to immediate family or to
personal or company accountants and/or financial or legal advisors.  The Company is not prohibited from disclosing
the facts and terms of this settlement to those Company employees who have a “need
to know” about the Agreement as determined by the Company.  The parties understand and agree that such
information may be disclosed to the aforementioned individuals only on the
condition that such individuals in turn agree to keep such information
completely confidential, and not to disclose it to others.  This Section shall not prohibit the
parties from disclosing the fact or details of this Agreement to any federal,
state or local authority or government agency, nor does it prohibit the parties
from complying with a valid court order or any law or regulation that compels
disclosure.  This Section shall also not prohibit the parties from
disclosing the terms of Cohen’s post-employment restrictions as set out in
Sections 9 and 10 of his Employment Agreement as modified by Section 5
above.

 

12.                                 Cohen agrees that except as
set forth in this Agreement, Cohen is not entitled to any other compensation or
benefits from the Company arising from his status as an employee of the
Company, including any severance benefits that may be available under the
Employment Agreement or any severance arrangement of the Company; provided,
however, that this Section 12 does not release any rights to compensation
or benefits by virtue of Cohen’s participation in the Company benefit plans
referenced in Section 6a(x) above.

 

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13.                                 Cohen and the Company affirm
that this Agreement, including the provisions of the Employment Agreement as
incorporated in Section 5 above, set forth the entire agreement between
the parties with respect to the subject matter contained herein and supersede
all prior or contemporaneous agreements or understandings between the parties
with respect to the subject matter contained herein.  Further, there are no representations,
arrangements or understandings, either oral or written, between the parties,
which are not fully expressed herein. 
Finally, no alteration or other modification of this Agreement shall be
effective unless made in writing and signed by both parties.

 

14.                                 This Agreement may be
executed in one or more counterparts by facsimile, each of which shall be
deemed to be an original but all of which together shall constitute one and the
same instrument.

 

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15.                                 Any notice authorized or
required to be given or made by or pursuant to this Agreement shall be made in
writing and either personally delivered or mailed by overnight express mail
addressed as follows:

 

	
  If to Cohen:

  	
  Ethan Cohen

  22425 Canterbury Lane

  Shaker Heights, OH 44122

  
	
   

  	
   

  
	
  with a copy to:

  	
  Rob Gilmore, Esq.

  Kohrman, Jackson & Krantz P.L.L.

  1375 East 9th Street

  20th Floor, One Cleveland Center

  Cleveland, Ohio 44114

  
	
   

  	
   

  
	
  If to the Company:

  	
  MedQuist Inc.

  1000 Bishops Gate

  Mount Laurel, NJ 08054-4632

  Attn: Gregory M. Sebasky

  
	
   

  	
   

  
	
  with a copy to:

  	
  Barry Abelson, Esquire

  Pepper Hamilton LLP

  3000 Two Logan Square

  Eighteenth and Arch Streets

  Philadelphia, PA 19103-2799

  

 

Either
party may change the address to which such notices are to be addressed by
giving the other party notice in the manner indicated above.

 

16.                                 The parties acknowledge that
they have carefully reviewed this Agreement with the assistance of counsel,
that they have entered into this Agreement voluntarily and knowingly and
without reliance on any promises not expressly contained herein, that they have
been afforded an adequate time to review carefully the terms of this Agreement,
and that this Agreement shall not be deemed void or voidable by claims of
duress, deception, mistake of fact or otherwise.

 

17.                                 This Agreement shall be
governed by and all questions relating to its validity, interpretation,
enforcement and performance shall be construed in accordance with the laws of
the State of New Jersey.  The exclusive
choice of laws set forth in this Section shall not be deemed to preclude
the enforcement of any judgment obtained in any forum or the taking of any
action under this Agreement to enforce such judgment in any appropriate
jurisdiction.

 

18.                                 Cohen affirms that he has
carefully read the foregoing Agreement, that he fully understands the meaning
and intent of this document and that he intends to be bound by the promises
contained in this Agreement for the aforesaid consideration.

 

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IN WITNESS
WHEREOF, Cohen and the authorized representative of the Company have executed
this Agreement on the dates indicated below:

 

 

	
   

  	
  By:

  	
  /s/ Ethan Cohen

  	
   

  	
  Dated:  December 17,
  2004

  
	
   

  	
   

  	
  Ethan Cohen

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MedQuist Inc.

  	
  Dated:  December 20,
  2004

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregory M. Sebasky 

  	
   

  	
   

  
	
   

  	
   

  	
  Gregory M. Sebasky

  President

  	
   

  	
   

  
						

 

7Exhibit
10.5

 

EMPLOYMENT
AGREEMENT

 

EMPLOYMENT AGREEMENT, dated this 29th day of March 2000,
between Peoples Community Bancorp, Inc. (the “Corporation”), Peoples Community
Bank, a Federally chartered savings bank and a wholly owned subsidiary of the
Corporation (the “Bank”), and Jerry D. Williams (the “Executive”).

 

WITNESSETH

 

WHEREAS, the Employers desire to be ensured
of the Executive’s active participation in the business of the Employers;

 

WHEREAS, in order to induce the Executive to
serve in the employ of the Employers and in consideration of the Executive’s
agreeing to serve in the employ of the Employers, the parties desire to specify
the severance benefits which shall be due the Executive by the Employers in the
event that his employment with the Employers is terminated under specified
circumstances;

 

NOW THEREFORE, in consideration of the mutual
agreements herein contained, and upon the other terms and conditions
hereinafter provided, the parties hereby agree as follows:

 

1.                                      Definitions.  The following words and terms shall have the
meanings set forth below for the purposes of this Agreement:

 

(a)                                  Average Annual Compensation.  The Executive’s “Average Annual Compensation”
for purposes of this Agreement shall be deemed to mean the average level of compensation
paid to the Executive by the Employers or any subsidiary thereof during the
most recent five taxable years preceding the Date of Termination and which was
either (i) included in the Executive’s gross income for tax purposes,
including but not limited to Base Salary, bonuses and amounts taxable to the
Executive under any qualified or non-qualified employee benefit plans of the
Employers, or (ii) deferred at the election of the Executive.

 

(b)                                 Base Salary.  “Base Salary” shall have the meaning set forth
in Section 3(a) hereof.

 

(c)                                  Cause. Termination of the Executive’s
employment for “Cause” shall mean termination because of personal dishonesty,
incompetence, willful misconduct, breach of fiduciary duty involving personal
profit, intentional failure to perform stated duties, willful violation of any
law, rule or regulation (other than traffic violations or similar offenses) or
final cease-and-desist order or material breach of any provision of this
Agreement.

 

(d)                                 Change in Control of the Corporation.  “Change in Control of the Corporation” shall
mean the occurrence of any of the following: 
(i) the acquisition of control of the Corporation as defined in 12
C.F.R. §574.4, unless a presumption of control is successfully

 

 

rebutted or unless the transaction is
exempted by 12 C.F.R. §574.3(c)(vii), or any successor to such sections;
(ii) an event that would be required to be reported in response to Item
1(a) of Form 8-K or Item 6(e) of Schedule 14A of Regulation 14A
pursuant to the Securities Exchange Act of 1934, as amended (“Exchange Act”),
or any successor thereto, whether or not any class of securities of the
Corporation is registered under the Exchange Act; (iii) any “person” (as
such term is used in Sections 13(d) and 14(d) of the Exchange Act) is or
becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, of securities of the Corporation representing 20%
or more of the combined voting power of the Corporation’s then outstanding
securities; or (iv) during any period of three consecutive years, individuals
who at the beginning of such period constitute the Board of Directors of the
Corporation cease for any reason to constitute at least a majority thereof
unless the election, or the nomination for election by stockholders, of each
new director was approved by a vote of at least two-thirds of the directors
then still in office who were directors at the beginning of the period.

 

(e)                                  Code. 
“Code” shall mean the Internal Revenue Code of 1986, as amended.

 

(f)                                    Date of Termination.  “Date of Termination” shall mean (i) if the
Executive’s employment is terminated for Cause or for Disability, the date
specified in the Notice of Termination, and (ii) if the Executive’s employment
is terminated for any other reason, the date on which a Notice of Termination
is given or as specified in such Notice.

 

(g)                                 Disability. 
Termination by the Employers of the Executive’s employment based on “Disability”
shall mean termination because of any physical or mental impairment which
qualifies the Executive for disability benefits under the applicable long-term
disability plan maintained by the Employers or any subsidiary or, if no such
plan applies, which would qualify the Executive for disability benefits under
the Federal Social Security System.

 

(h)                                 Good Reason.  Termination by the Executive of the Executive’s
employment for “Good Reason” shall mean termination by the Executive within
twenty-four (24) months following a Change in Control of the Corporation based
on:

 

(i)                                     Without
the Executive’s express written consent, the failure to elect or to re-elect or
to appoint or to re-appoint the Executive to the offices of President and Chief
Executive Officer of the Employers or a material adverse change made by the
Employers in the Executive’s functions, duties or responsibilities as President
and Chief Executive Officer of the Employers;

 

(ii)                                  Without
the Executive’s express written consent, a reduction by either of the Employers
in the Executive’s Base Salary as the same may be increased from time to time
or, except to the extent permitted by Section 3(b) hereof, a reduction in
the package of fringe benefits provided to the Executive, taken as a whole;

 

2

 

(iii)                               The
principal executive office of either of the Employers is relocated outside of
the Lebanon, Ohio area or, without the Executive’s express written consent,
either of the Employers require the Executive to be based anywhere other than
an area in which the Employers’ principal executive office is located, except
for required travel on business of the Employers to an extent substantially
consistent with the Executive’s present business travel obligations;

 

(iv)                              Any
purported termination of the Executive’s employment for Disability or
Retirement which is not effected pursuant to a Notice of Termination satisfying
the requirements of paragraph (j) below; or

 

(v)                                 The
failure by the Employers to obtain the assumption of and agreement to perform
this Agreement by any successor as contemplated in Section 9 hereof.

 

(i)                                     IRS. 
IRS shall mean the Internal Revenue Service.

 

(j)                                     Notice of Termination.  Any purported termination of the Executive’s
employment by the Employers for any reason, including without limitation for
Cause, Disability or Retirement, or by the Executive for any reason, including
without limitation for Good Reason, shall be communicated by written “Notice of
Termination” to the other party hereto. 
For purposes of this Agreement, a “Notice of Termination” shall mean a
dated notice which (i) indicates the specific termination provision in this
Agreement relied upon, (ii) sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of Executive’s
employment under the provision so indicated, (iii) specifies a Date of
Termination, which shall be not less than thirty (30) nor more than ninety (90)
days after such Notice of Termination is given, except in the case of the
Employers’ termination of Executive’s employment for Cause, which shall be
effective immediately; and (iv) is given in the manner specified in Section 10
hereof.

 

(k)                                  Retirement. 
“Retirement” shall mean voluntary termination by the Executive in
accordance with the Employers’ retirement policies, including early retirement,
generally applicable to their salaried employees.

 

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2.                                      Term
of Employment.

 

(a)                                  The
Employers hereby employ the Executive as President and Chief Executive Officer,
and the Executive hereby accepts said employment and agrees to render such
services to the Employers on the terms and conditions set forth in this
Agreement.  The term of this Agreement
shall be a period of three years commencing as of the date hereof (the “Commencement
Date”), subject to earlier termination as provided herein. Beginning on the day
which is one year subsequent to the Commencement Date, and on each annual
anniversary thereafter, the term of this Agreement shall be extended for a
period of one year in addition to the then-remaining term, provided that the
Employers have not given notice to the Executive in writing at least 60 days
prior to such day that the term of the Agreement shall not be extended
further.  Reference herein to the term of
this Agreement shall refer to both such initial term and such extended
terms.  The Boards of Directors of the
Employers shall review on a periodic basis (and no less frequently than
annually) whether to permit further extensions of the term of this Agreement.  As part of such review, the Board of Directors
shall consider all relevant factors, including the Executive’s performance
hereunder, and shall either expressly approve further extensions of the time of
this Agreement or decide to provide notice to the contrary.  Effective upon the Commencement Date, any and
all prior agreements with the Employers or with Harvest Home Financial
Corporation, Harvest Home Savings Bank or The Oakley Improved Building and Loan
Company (collectively, the “Former Employers”) shall terminate, with no
obligations to the Executive thereunder on the part of the Former Employers.

 

(b)                                 During
the term of this Agreement, the Executive shall perform such executive services
for the Employers as may be consistent with his titles and from time to time
assigned to him by the Employers’ Boards of Directors.

 

3.                                      Compensation
and Benefits.

 

(a)                                  The
Employers shall compensate and pay the Executive for his services during the
term of this Agreement at a minimum base salary of $100,000.00 per year (“Base
Salary”), which may be increased from time to time in such amounts as may be
determined by the Boards of Directors of the Employers and may not be decreased
without the Executive’s express written consent.  In addition to his Base Salary, the Executive
shall be entitled to receive during the term of this Agreement such bonus
payments as may be determined by the Boards of Directors of the Employers.

 

(b)                                 During
the term of this Agreement, the Executive shall be entitled to participate in
and receive the benefits of any pension or other retirement benefit plan,
profit sharing, stock option, employee stock ownership, or other plans,
benefits and privileges given to employees and executives of the Employers, to
the extent commensurate with his then duties and responsibilities, as fixed by
the Boards of Directors of the Employers. 
The Employers shall not make any changes in such plans, benefits or
privileges which would adversely affect the Executive’s rights or benefits
thereunder, unless such change occurs pursuant to a program applicable to all
executive officers of the Employers and does not result in a proportionately greater
adverse change in the rights of or benefits to the Executive as compared with
any other executive officer of the Employers. 
Nothing paid to the Executive under any plan or arrangement presently in
effect or made available in the future shall be deemed to be in lieu of the
salary payable to the Executive pursuant to Section 3(a) hereof.

 

4

 

(c)                                  During
the term of this Agreement, the Executive shall be entitled to paid annual
vacation in accordance with the policies as established from time to time by
the Boards of Directors of the Employers. 
The Executive shall not be entitled to receive any additional
compensation from the Employers for failure to take a vacation, nor shall the
Executive be able to accumulate unused vacation time from one year to the next,
except to the extent authorized by the Boards of Directors of the Employers.

 

(d)                                 In
the event the Executive’s employment is terminated due to Disability or
Retirement, the Employers shall provide continued life, medical, dental and
disability coverage substantially identical to the coverage maintained by the
Employers for the Executive immediately prior to his termination.  Such coverage shall cease upon the expiration
of the remaining term of this Agreement.

 

(e)                                  The
Executive’s compensation, benefits and expenses shall be paid by the
Corporation and the Bank in the same proportion as the time and services
actually expended by the Executive on behalf of each respective Employer.

 

4.                                      Expenses.  The Employers shall reimburse the Executive
or otherwise provide for or pay for all reasonable expenses incurred by the
Executive in furtherance of or in connection with the business of the
Employers, including, but not by way of limitation, automobile expenses and
other traveling expenses, and all reasonable entertainment expenses (whether
incurred at the Executive’s residence, while traveling or otherwise), subject
to such reasonable documentation and other limitations as may be established by
the Boards of Directors of the Employers. 
If such expenses are paid in the first instance by the Executive, the
Employers shall reimburse the Executive therefor.

 

5.                                      Termination.

 

(a)                                  The
Employers shall have the right, at any time upon prior Notice of Termination,
to terminate the Executive’s employment hereunder for any reason, including
without limitation termination for Cause, Disability or Retirement, and the
Executive shall have the right, upon prior Notice of Termination, to terminate
his employment hereunder for any reason.

 

(b)                                 In
the event that (i) the Executive’s employment is terminated by the Employers
for Cause or (ii) the Executive terminates his employment hereunder other than
for Disability, Retirement, death or Good Reason, the Executive shall have no
right pursuant to this Agreement to compensation or other benefits for any
period after the applicable Date of Termination.

 

(c)                                  In
the event that the Executive’s employment is terminated as a result of
Disability, Retirement or the Executive’s death during the term of this
Agreement, the Executive shall have no right pursuant to this Agreement to
compensation or other benefits for any period after the applicable Date of
Termination, except as provided for in Section 3(d) hereof.

 

5

 

(d)                                 In
the event that (i) the Executive’s employment is terminated by the Employers
for other than Cause, Disability, Retirement or the Executive’s death or (ii)
such employment is terminated by the Executive (a) due to a material breach of
this Agreement by the Employers, which breach has not been cured within fifteen
(15) days after a written notice of non-compliance has been given by the
Executive to the Employers, or (b) for Good Reason, then the Employers shall,
subject to the provisions of Section 6 hereof, if applicable

 

(A)                              pay
to the Executive, in either thirty-six (36) equal monthly installments
beginning with the first business day of the month following the Date of
Termination or in a lump sum within five business days of the Date of
Termination (at the Executive’s election), a cash severance amount equal to
three (3) times that portion of the Executive’s Average Annual Compensation
paid by the Employers, and

 

(B)                                maintain
and provide for a period ending at the earlier of (i) the expiration of the
remaining term of employment pursuant hereto prior to the Notice of Termination
or (ii) the date of the Executive’s full-time employment by another employer
(provided that the Executive is entitled under the terms of such employment to
benefits substantially similar to those described in this subparagraph (B)), at
no cost to the Executive, the Executive’s continued participation in all group
insurance, life insurance, health and accident insurance, disability insurance
and other employee benefit plans, programs and arrangements offered by the
Employers in which the Executive was entitled to participate immediately prior
to the Date of Termination (excluding (x) stock option and restricted stock
plans of the Employers, (y) bonuses and other items of cash compensation
included in Average Annual Compensation and (z) other benefits, or
portions thereof, included in Average Annual Compensation), provided that in
the event that the Executive’s participation in any plan, program or
arrangement as provided in this subparagraph (B) is barred, or during such
period any such plan, program or arrangement is discontinued or the benefits
thereunder are materially reduced, the Employers shall arrange to provide the
Executive with benefits substantially similar to those which the Executive was
entitled to receive under such plans, programs and arrangements immediately
prior to the Date of Termination.

 

6.                                      Limitation
of Benefits under Certain Circumstances. 
If the payments and benefits pursuant to Section 5 hereof, either
alone or together with other payments and benefits which the Executive has the
right to receive from the Employers, would constitute a “parachute payment”
under Section 280G of the Code, the payments and benefits payable by the
Employers pursuant to Section 5 hereof shall be reduced, in the manner
determined by the Executive, by the amount, if any, which is the minimum
necessary to result in no portion of the payments and benefits payable by the
Employers under Section 5 being non-deductible to the Employers pursuant
to Section 280G of the Code and subject to the excise tax imposed under Section 4999
of the Code.  The parties hereto agree
that the present value of the payments and benefits payable pursuant to this

 

6

 

Agreement to the Executive upon termination
shall be limited to three times the Executive’s Average Annual
Compensation.  The determination of any
reduction in the payments and benefits to be made pursuant to Section 5
shall be based upon the opinion of independent counsel selected by the
Employers’ independent public accountants and paid by the Employers.  Such counsel shall be reasonably acceptable
to the Employers and the Executive; shall promptly prepare the foregoing
opinion, but in no event later than thirty (30) days from the Date of
Termination; and may use such actuaries as such counsel deems necessary or
advisable for the purpose.  Nothing
contained herein shall result in a reduction of any payments or benefits to
which the Executive may be entitled upon termination of employment under any
circumstances other than as specified in this Section 6, or a reduction in
the payments and benefits specified in Section 5 below zero.

 

7.                                      Mitigation;
Exclusivity of Benefits.

 

(a)                                  The
Executive shall not be required to mitigate the amount of any benefits
hereunder by seeking other employment or otherwise, nor shall the amount of any
such benefits be reduced by any compensation earned by the Executive as a
result of employment by another employer after the Date of Termination or
otherwise.

 

(b)                                 The
specific arrangements referred to herein are not intended to exclude any other
benefits which may be available to the Executive upon a termination of
employment with the Employers pursuant to employee benefit plans of the
Employers or otherwise.

 

8.                                      Withholding.  All payments required to be made by the
Employers hereunder to the Executive shall be subject to the withholding of
such amounts, if any, relating to tax and other payroll deductions as the
Employers may reasonably determine should be withheld pursuant to any
applicable law or regulation.

 

9.                                      Assignability.  The Employers may assign this Agreement and
its rights and obligations hereunder in whole, but not in part, to any
corporation, bank or other entity with or into which the Employers may
hereafter merge or consolidate or to which the Employers may transfer all or
substantially all of its assets, if in any such case said corporation, bank or
other entity shall by operation of law or expressly in writing assume all
obligations of the Employers hereunder as fully as if it had been originally
made a party hereto, but may not otherwise assign this Agreement or its rights
and obligations hereunder.  The Executive
may not assign or transfer this Agreement or any rights or obligations
hereunder.

 

10.                               Notice.  For the purposes of this Agreement, notices
and all other communications provided for in this Agreement shall be in writing
and shall be deemed to have been duly given when delivered or mailed by
certified or registered mail, return receipt requested, postage prepaid,
addressed to the respective addresses set forth below:

 

7

 

	
  To the Employers:

  	
   

  	
  Boards of Directors

  
	
   

  	
   

  	
  Peoples Bancorp, Inc.

  
	
   

  	
   

  	
  Peoples Community Bank

  
	
   

  	
   

  	
  11 South Broadway

  
	
   

  	
   

  	
  Lebanon, Ohio 45036-1780

  
	
   

  	
   

  	
   

  
	
  To the Executive:

  	
   

  	
  Jerry D. Williams

  
	
   

  	
   

  	
  219 South Mechanic Street

  
	
   

  	
   

  	
  Lebanon, Ohio 45036

  

 

11.                               Amendment;
Waiver.  No provisions of this
Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in writing and signed by the Executive
and such officer or officers as may be specifically designated by the Boards of
Directors of the Employers to sign on their behalf.  No waiver by any party hereto at any time of
any breach by any other party hereto of, or compliance with, any condition or
provision of this Agreement to be performed by such other party shall be deemed
a waiver of similar or dissimilar provisions or conditions at the same or at
any prior or subsequent time.

 

12.                               Governing
Law.  The validity, interpretation,
construction and performance of this Agreement shall be governed by the laws of
the United States where applicable and otherwise by the substantive laws of the
State of Ohio.

 

13.                               Nature
of Obligations.  Nothing contained
herein shall create or require the Employers to create a trust of any kind to
fund any benefits which may be payable hereunder, and to the extent that the
Executive acquires a right to receive benefits from the Employers hereunder,
such right shall be no greater than the right of any unsecured general creditor
of the Employers.

 

14.                               Headings.  The section headings contained in this Agreement
are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

 

15.                               Validity.  The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provisions of this Agreement, which shall remain in full force and
effect.

 

16.                               Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

 

17.                               Regulatory
Actions.  The following provisions
shall be applicable to the parties to the extent that they are required to be
included in employment agreements between a savings association and its
employees pursuant to Section 563.39(b) of the Regulations Applicable to
All Savings Associations, 12 C.F.R. §563.39(b), or any successor thereto, and
shall be controlling in the event of a conflict with any other provision of
this Agreement, including without limitation Section 5 hereof.

 

8

 

(a)                                  If
the Executive is suspended from office and/or temporarily prohibited from
participating in the conduct of the Employers’ affairs pursuant to notice
served under Section 8(e)(3) or Section 8(g)(1) of the Federal
Deposit Insurance Act (“FDIA”) (12 U.S.C. §§1818(e)(3) and 1818(g)(1)), the
Employers’ obligations under this Agreement shall be suspended as of the date
of service, unless stayed by appropriate proceedings.  If the charges in the notice are dismissed,
the Employers may, in their discretion: 
(i) pay the Executive all or part of the compensation withheld while its
obligations under this Agreement were suspended, and (ii) reinstate (in whole
or in part) any of its obligations which were suspended.

 

(b)                                 If
the Executive is removed from office and/or permanently prohibited from
participating in the conduct of the Employers’ affairs by an order issued under
Section 8(e)(4) or Section 8(g)(1) of the FDIA (12 U.S.C.
§§1818(e)(4) and (g)(1)), all obligations of the Employers under this Agreement
shall terminate as of the effective date of the order, but vested rights of the
Executive and the Employers as of the date of termination shall not be
affected.

 

(c)                                  If
the Bank is in default, as defined in Section 3(x)(1) of the FDIA (12
U.S.C. §1813(x)(1)), all obligations under this Agreement shall terminate as of
the date of default, but vested rights of the Executive and the Employers as of
the date of termination shall not be affected.

 

(d)                                 All
obligations under this Agreement shall be terminated pursuant to 12 C.F.R.
§563.39(b)(5) (except to the extent that it is determined that continuation of
the Agreement for the continued operation of the Employers is necessary):  (i) by the Director of the Office of Thrift
Supervision (“OTS”), or his/her designee, at the time the Federal Deposit
Insurance Corporation (“FDIC”) enters into an agreement to provide assistance
to or on behalf of the Bank under the authority contained in Section 13(c)
of the FDIA (12 U.S.C. §1823(c)); or (ii) by the Director of the OTS, or
his/her designee, at the time the Director or his/her designee approves a
supervisory merger to resolve problems related to operation of the Bank or when
the Bank is determined by the Director of the OTS to be in an unsafe or unsound
condition, but vested rights of the Executive and the Employers as of the date
of termination shall not be affected.

 

18.                               Regulatory
Prohibition.  Notwithstanding any
other provision of this Agreement to the contrary, any payments made to the
Executive pursuant to this Agreement, or otherwise, are subject to and
conditioned upon their compliance with Section 18(k) of the Federal
Deposit Insurance Act (12 U.S.C. §1828(k)) and the regulations promulgated
thereunder, including 12 C.F.R. Part 359.

 

19.                               Payment
of Costs and Legal Fees and Reinstatement of Benefits.  In the event any dispute or controversy
arising under or in connection with the Executive’s termination is resolved in
favor of the Executive, whether by judgment, arbitration or settlement, the
Executive shall be entitled to the payment of (a) all legal fees incurred
by the Executive in resolving such dispute or controversy, and (2) any
back-pay, including Base Salary, bonuses and any other cash compensation, fringe
benefits and any compensation and benefits due to the Executive under this
Agreement.

 

20.                               Entire
Agreement.  This Agreement embodies
the entire agreement between the Employers and the Executive with respect to
the matters agreed to herein.  All prior agreements
between the Employers and the Executive with respect to the matters agreed to
herein are hereby superseded and shall have no force or effect.  Notwithstanding the foregoing, nothing
contained in this Agreement shall affect the agreement of even date being
entered into between the Corporation and the Executive.

 

9

 

IN WITNESS WHEREOF, this Agreement has been
executed as of the date first above written.

 

	
   

  	
  PEOPLES  COMMUNITY BANCORP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  Thomas J. Noe

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PEOPLES COMMUNITY BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Thomas J. Noe

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
    /s/ Jerry D. Williams

  
	
   

  	
   

  	
  Jerry D. Williams

  

 

10

 

EMPLOYMENT
AGREEMENT

 

EMPLOYMENT AGREEMENT, dated this 29th day of March 2000,
between Peoples Community Bancorp, Inc. (the “Corporation”), Peoples Community
Bank, a Federally chartered savings bank and a wholly owned subsidiary of the
Corporation (the “Bank”), and Thomas J. Noe (the “Executive”).

 

WITNESSETH

 

WHEREAS, the Employers desire to be ensured
of the Executive’s active participation in the business of the Employers;

 

WHEREAS, in order to induce the Executive to
serve in the employ of the Employers and in consideration of the Executive’s
agreeing to serve in the employ of the Employers, the parties desire to specify
the severance benefits which shall be due the Executive by the Employers in the
event that his employment with the Employers is terminated under specified
circumstances;

 

NOW THEREFORE, in consideration of the mutual
agreements herein contained, and upon the other terms and conditions
hereinafter provided, the parties hereby agree as follows:

 

1.                                      Definitions.  The following words and terms shall have the
meanings set forth below for the purposes of this Agreement:

 

(a)                                  Average Annual Compensation.  The Executive’s “Average Annual Compensation”
for purposes of this Agreement shall be deemed to mean the average level of
compensation paid to the Executive by the Employers or any subsidiary thereof
during the most recent five taxable years preceding the Date of Termination and
which was either (i) included in the Executive’s gross income for tax
purposes, including but not limited to Base Salary, bonuses and amounts taxable
to the Executive under any qualified or non-qualified employee benefit plans of
the Employers, or (ii) deferred at the election of the Executive.

 

(b)                                 Base Salary.  “Base Salary” shall have the meaning set
forth in Section 3(a) hereof.

 

(c)                                  Cause. Termination of the Executive’s
employment for “Cause” shall mean termination because of personal dishonesty,
incompetence, willful misconduct, breach of fiduciary duty involving personal
profit, intentional failure to perform stated duties, willful violation of any
law, rule or regulation (other than traffic violations or similar offenses) or
final cease-and-desist order or material breach of any provision of this
Agreement.

 

(d)                                 Change in Control of the Corporation.  “Change in Control of the Corporation” shall
mean the occurrence of any of the following: 
(i) the acquisition of control of the Corporation as defined in 12
C.F.R. §574.4, unless a presumption of control is successfully

 

 

rebutted or unless the transaction is
exempted by 12 C.F.R. §574.3(c)(vii), or any successor to such sections;
(ii) an event that would be required to be reported in response to Item
1(a) of Form 8-K or Item 6(e) of Schedule 14A of Regulation 14A
pursuant to the Securities Exchange Act of 1934, as amended (“Exchange Act”),
or any successor thereto, whether or not any class of securities of the
Corporation is registered under the Exchange Act; (iii) any “person” (as
such term is used in Sections 13(d) and 14(d) of the Exchange Act) is or
becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, of securities of the Corporation representing 20%
or more of the combined voting power of the Corporation’s then outstanding
securities; or (iv) during any period of three consecutive years, individuals
who at the beginning of such period constitute the Board of Directors of the
Corporation cease for any reason to constitute at least a majority thereof
unless the election, or the nomination for election by stockholders, of each
new director was approved by a vote of at least two-thirds of the directors
then still in office who were directors at the beginning of the period.

 

(e)                                  Code. 
“Code” shall mean the Internal Revenue Code of 1986, as amended.

 

(f)                                    Date of Termination.  “Date of Termination” shall mean (i) if the
Executive’s employment is terminated for Cause or for Disability, the date
specified in the Notice of Termination, and (ii) if the Executive’s employment
is terminated for any other reason, the date on which a Notice of Termination
is given or as specified in such Notice.

 

(g)                                 Disability. 
Termination by the Employers of the Executive’s employment based on “Disability”
shall mean termination because of any physical or mental impairment which
qualifies the Executive for disability benefits under the applicable long-term
disability plan maintained by the Employers or any subsidiary or, if no such
plan applies, which would qualify the Executive for disability benefits under
the Federal Social Security System.

 

(h)                                 Good Reason.  Termination by the Executive of the Executive’s
employment for “Good Reason” shall mean termination by the Executive within
twenty-four (24) months following a Change in Control of the Corporation based
on:

 

(i)                                     Without
the Executive’s express written consent, the failure to elect or to re-elect or
to appoint or to re-appoint the Executive to the office of Chief Financial
Officer of the Employers or a material adverse change made by the Employers in
the Executive’s functions, duties or responsibilities as Chief Financial
Officer of the Employers;

 

(ii)                                  Without
the Executive’s express written consent, a reduction by either of the Employers
in the Executive’s Base Salary as the same may be increased from time to time
or, except to the extent permitted by Section 3(b) hereof, a reduction in
the package of fringe benefits provided to the Executive, taken as a whole;

 

2

 

(iii)                               The
principal executive office of either of the Employers is relocated outside of
the Lebanon, Ohio area or, without the Executive’s express written consent,
either of the Employers require the Executive to be based anywhere other than
an area in which the Employers’ principal executive office is located, except
for required travel on business of the Employers to an extent substantially
consistent with the Executive’s present business travel obligations;

 

(iv)                              Any
purported termination of the Executive’s employment for Disability or
Retirement which is not effected pursuant to a Notice of Termination satisfying
the requirements of paragraph (j) below; or

 

(v)                                 The
failure by the Employers to obtain the assumption of and agreement to perform
this Agreement by any successor as contemplated in Section 9 hereof.

 

(i)                                     IRS. 
IRS shall mean the Internal Revenue Service.

 

(j)                                     Notice of Termination.  Any purported termination of the Executive’s
employment by the Employers for any reason, including without limitation for
Cause, Disability or Retirement, or by the Executive for any reason, including
without limitation for Good Reason, shall be communicated by written “Notice of
Termination” to the other party hereto. 
For purposes of this Agreement, a “Notice of Termination” shall mean a
dated notice which (i) indicates the specific termination provision in this
Agreement relied upon, (ii) sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of Executive’s
employment under the provision so indicated, (iii) specifies a Date of
Termination, which shall be not less than thirty (30) nor more than ninety (90)
days after such Notice of Termination is given, except in the case of the
Employers’ termination of Executive’s employment for Cause, which shall be
effective immediately; and (iv) is given in the manner specified in Section 10
hereof.

 

(k)                                  Retirement. 
“Retirement” shall mean voluntary termination by the Executive in
accordance with the Employers’ retirement policies, including early retirement,
generally applicable to their salaried employees.

 

3

 

2.                                      Term
of Employment.

 

(a)                                  The
Employers hereby employ the Executive as Chief Financial Officer, and the
Executive hereby accepts said employment and agrees to render such services to
the Employers on the terms and conditions set forth in this Agreement.  The term of this Agreement shall be a period
of three years commencing as of the date hereof (the “Commencement Date”),
subject to earlier termination as provided herein. Beginning on the day which
is one year subsequent to the Commencement Date, and on each annual anniversary
thereafter, the term of this Agreement shall be extended for a period of one
year in addition to the then-remaining term, provided that the Employers have
not given notice to the Executive in writing at least 60 days prior to such day
that the term of the Agreement shall not be extended further.  Reference herein to the term of this
Agreement shall refer to both such initial term and such extended terms.  The Boards of Directors of the Employers
shall review on a periodic basis (and no less frequently than annually) whether
to permit further extensions of the term of this Agreement.  As part of such review, the Board of
Directors shall consider all relevant factors, including the Executive’s
performance hereunder, and shall either expressly approve further extensions of
the time of this Agreement or decide to provide notice to the contrary.  Effective upon the Commencement Date, any and
all prior agreements with the Employers or with Harvest Home Financial
Corporation, Harvest Home Savings Bank or The Oakley Improved Building and Loan
Company (collectively, the “Former Employers”) shall terminate, with no
obligations to the Executive thereunder on the part of the Former Employers.

 

(b)                                 During
the term of this Agreement, the Executive shall perform such executive services
for the Employers as may be consistent with his titles and from time to time
assigned to him by the Employers’ Boards of Directors.

 

3.                                      Compensation
and Benefits.

 

(a)                                  The
Employers shall compensate and pay the Executive for his services during the
term of this Agreement at a minimum base salary of $75,000.00 per year (“Base
Salary”), which may be increased from time to time in such amounts as may be
determined by the Boards of Directors of the Employers and may not be decreased
without the Executive’s express written consent.  In addition to his Base Salary, the Executive
shall be entitled to receive during the term of this Agreement such bonus
payments as may be determined by the Boards of Directors of the Employers.

 

(b)                                 During
the term of this Agreement, the Executive shall be entitled to participate in
and receive the benefits of any pension or other retirement benefit plan,
profit sharing, stock option, employee stock ownership, or other plans,
benefits and privileges given to employees and executives of the Employers, to
the extent commensurate with his then duties and responsibilities, as fixed by
the Boards of Directors of the Employers. 
The Employers shall not make any changes in such plans, benefits or
privileges which would adversely affect the Executive’s rights or benefits
thereunder, unless such change occurs pursuant to a program applicable to all
executive officers of the Employers and does not result in a proportionately greater
adverse change in the rights of or benefits to the Executive as compared with
any other executive officer of the Employers. 
Nothing paid to the Executive under any plan or arrangement presently in
effect or made available in the future shall be deemed to be in lieu of the
salary payable to the Executive pursuant to Section 3(a) hereof.

 

(c)                                  During
the term of this Agreement, the Executive shall be entitled to paid annual
vacation in accordance with the policies as established from time to time by
the Boards of Directors of the Employers. 
The Executive shall not be entitled to receive any additional
compensation from the Employers for failure to take a vacation, nor shall the
Executive be able to accumulate unused vacation time from one year to the next,
except to the extent authorized by the Boards of Directors of the Employers.

 

4

 

(d)                                 In
the event the Executive’s employment is terminated due to Disability or
Retirement, the Employers shall provide continued life, medical, dental and
disability coverage substantially identical to the coverage maintained by the
Employers for the Executive immediately prior to his termination.  Such coverage shall cease upon the expiration
of the remaining term of this Agreement.

 

(e)                                  The
Executive’s compensation, benefits and expenses shall be paid by the
Corporation and the Bank in the same proportion as the time and services
actually expended by the Executive on behalf of each respective Employer.

 

4.                                      Expenses.  The Employers shall reimburse the Executive
or otherwise provide for or pay for all reasonable expenses incurred by the
Executive in furtherance of or in connection with the business of the
Employers, including, but not by way of limitation, automobile expenses and
other traveling expenses, and all reasonable entertainment expenses (whether
incurred at the Executive’s residence, while traveling or otherwise), subject
to such reasonable documentation and other limitations as may be established by
the Boards of Directors of the Employers. 
If such expenses are paid in the first instance by the Executive, the
Employers shall reimburse the Executive therefor.

 

5.                                      Termination.

 

(a)                                  The
Employers shall have the right, at any time upon prior Notice of Termination,
to terminate the Executive’s employment hereunder for any reason, including
without limitation termination for Cause, Disability or Retirement, and the
Executive shall have the right, upon prior Notice of Termination, to terminate
his employment hereunder for any reason.

 

(b)                                 In
the event that (i) the Executive’s employment is terminated by the Employers
for Cause or (ii) the Executive terminates his employment hereunder other than
for Disability, Retirement, death or Good Reason, the Executive shall have no
right pursuant to this Agreement to compensation or other benefits for any
period after the applicable Date of Termination.

 

(c)                                  In
the event that the Executive’s employment is terminated as a result of
Disability, Retirement or the Executive’s death during the term of this
Agreement, the Executive shall have no right pursuant to this Agreement to
compensation or other benefits for any period after the applicable Date of
Termination, except as provided for in Section 3(d) hereof.

 

(d)                                 In
the event that (i) the Executive’s employment is terminated by the Employers
for other than Cause, Disability, Retirement or the Executive’s death or (ii)
such employment is terminated by the Executive (a) due to a material breach of
this Agreement by the Employers, which breach has not been cured within fifteen
(15) days after a written notice of non-compliance has been given by the
Executive to the Employers, or (b) for Good Reason, then the Employers shall,
subject to the provisions of Section 6 hereof, if applicable

 

5

 

(A)                              pay
to the Executive, in either thirty-six (36) equal monthly installments
beginning with the first business day of the month following the Date of
Termination or in a lump sum within five business days of the Date of
Termination (at the Executive’s election), a cash severance amount equal to
three (3) times that portion of the Executive’s Average Annual Compensation
paid by the Employers, and

 

(B)                                maintain
and provide for a period ending at the earlier of (i) the expiration of the
remaining term of employment pursuant hereto prior to the Notice of Termination
or (ii) the date of the Executive’s full-time employment by another employer
(provided that the Executive is entitled under the terms of such employment to
benefits substantially similar to those described in this subparagraph (B)), at
no cost to the Executive, the Executive’s continued participation in all group
insurance, life insurance, health and accident insurance, disability insurance
and other employee benefit plans, programs and arrangements offered by the
Employers in which the Executive was entitled to participate immediately prior
to the Date of Termination (excluding (x) stock option and restricted stock
plans of the Employers, (y) bonuses and other items of cash compensation
included in Average Annual Compensation and (z) other benefits, or
portions thereof, included in Average Annual Compensation), provided that in
the event that the Executive’s participation in any plan, program or
arrangement as provided in this subparagraph (B) is barred, or during such
period any such plan, program or arrangement is discontinued or the benefits
thereunder are materially reduced, the Employers shall arrange to provide the
Executive with benefits substantially similar to those which the Executive was
entitled to receive under such plans, programs and arrangements immediately
prior to the Date of Termination.

 

6.                                      Limitation
of Benefits under Certain Circumstances. 
If the payments and benefits pursuant to Section 5 hereof, either
alone or together with other payments and benefits which the Executive has the
right to receive from the Employers, would constitute a “parachute payment”
under Section 280G of the Code, the payments and benefits payable by the
Employers pursuant to Section 5 hereof shall be reduced, in the manner
determined by the Executive, by the amount, if any, which is the minimum
necessary to result in no portion of the payments and benefits payable by the
Employers under Section 5 being non-deductible to the Employers pursuant
to Section 280G of the Code and subject to the excise tax imposed under Section 4999
of the Code.  The parties hereto agree
that the present value of the payments and benefits payable pursuant to this
Agreement to the Executive upon termination shall be limited to three times the
Executive’s Average Annual Compensation. 
The determination of any reduction in the payments and benefits to be
made pursuant to Section 5 shall be based upon the opinion of independent
counsel selected by the Employers’ independent public accountants and paid by
the Employers.  Such counsel shall be
reasonably acceptable to the Employers and the Executive; shall promptly
prepare the foregoing opinion, but in no event later than thirty (30) days from
the Date of Termination; and may use such actuaries as such

 

6

 

counsel deems necessary or advisable for the
purpose.  Nothing contained herein shall
result in a reduction of any payments or benefits to which the Executive may be
entitled upon termination of employment under any circumstances other than as
specified in this Section 6, or a reduction in the payments and benefits
specified in Section 5 below zero.

 

7.                                      Mitigation;
Exclusivity of Benefits.

 

(a)                                  The
Executive shall not be required to mitigate the amount of any benefits
hereunder by seeking other employment or otherwise, nor shall the amount of any
such benefits be reduced by any compensation earned by the Executive as a
result of employment by another employer after the Date of Termination or
otherwise.

 

(b)                                 The
specific arrangements referred to herein are not intended to exclude any other
benefits which may be available to the Executive upon a termination of
employment with the Employers pursuant to employee benefit plans of the
Employers or otherwise.

 

8.                                      Withholding.  All payments required to be made by the
Employers hereunder to the Executive shall be subject to the withholding of
such amounts, if any, relating to tax and other payroll deductions as the
Employers may reasonably determine should be withheld pursuant to any
applicable law or regulation.

 

9.                                      Assignability.  The Employers may assign this Agreement and
its rights and obligations hereunder in whole, but not in part, to any corporation,
bank or other entity with or into which the Employers may hereafter merge or
consolidate or to which the Employers may transfer all or substantially all of
its assets, if in any such case said corporation, bank or other entity shall by
operation of law or expressly in writing assume all obligations of the
Employers hereunder as fully as if it had been originally made a party hereto,
but may not otherwise assign this Agreement or its rights and obligations
hereunder.  The Executive may not assign
or transfer this Agreement or any rights or obligations hereunder.

 

10.                               Notice.  For the purposes of this Agreement, notices
and all other communications provided for in this Agreement shall be in writing
and shall be deemed to have been duly given when delivered or mailed by
certified or registered mail, return receipt requested, postage prepaid,
addressed to the respective addresses set forth below:

 

	
  To the Employers:

  	
   

  	
  Boards of Directors

  
	
   

  	
   

  	
  Peoples Bancorp, Inc.

  
	
   

  	
   

  	
  Peoples Community Bank

  
	
   

  	
   

  	
  11 South Broadway

  
	
   

  	
   

  	
  Lebanon, Ohio 45036-1780

  
	
   

  	
   

  	
   

  
	
  To the Executive:

  	
   

  	
  Thomas J. Noe

  
	
   

  	
   

  	
  3348 Partridge Lake Court

  
	
   

  	
   

  	
  Cincinnati, Ohio 45248

  

 

7

 

11.                               Amendment;
Waiver.  No provisions of this
Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in writing and signed by the Executive
and such officer or officers as may be specifically designated by the Boards of
Directors of the Employers to sign on their behalf.  No waiver by any party hereto at any time of
any breach by any other party hereto of, or compliance with, any condition or
provision of this Agreement to be performed by such other party shall be deemed
a waiver of similar or dissimilar provisions or conditions at the same or at
any prior or subsequent time.

 

12.                               Governing
Law.  The validity, interpretation,
construction and performance of this Agreement shall be governed by the laws of
the United States where applicable and otherwise by the substantive laws of the
State of Ohio.

 

13.                               Nature
of Obligations.  Nothing contained
herein shall create or require the Employers to create a trust of any kind to
fund any benefits which may be payable hereunder, and to the extent that the
Executive acquires a right to receive benefits from the Employers hereunder,
such right shall be no greater than the right of any unsecured general creditor
of the Employers.

 

14.                               Headings.  The section headings contained in this
Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement.

 

15.                               Validity.  The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provisions of this Agreement, which shall remain in full force and
effect.

 

16.                               Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

 

17.                               Regulatory
Actions.  The following provisions
shall be applicable to the parties to the extent that they are required to be
included in employment agreements between a savings association and its
employees pursuant to Section 563.39(b) of the Regulations Applicable to
All Savings Associations, 12 C.F.R. §563.39(b), or any successor thereto, and
shall be controlling in the event of a conflict with any other provision of
this Agreement, including without limitation Section 5 hereof.

 

(a)                                  If
the Executive is suspended from office and/or temporarily prohibited from
participating in the conduct of the Employers’ affairs pursuant to notice
served under Section 8(e)(3) or Section 8(g)(1) of the Federal
Deposit Insurance Act (“FDIA”) (12 U.S.C. §§1818(e)(3) and 1818(g)(1)), the
Employers’ obligations under this Agreement shall be suspended as of the date
of service, unless stayed by appropriate proceedings.  If the charges in the notice are dismissed,
the Employers may, in their discretion: 
(i) pay the Executive all or part of the compensation withheld while its

 

8

 

obligations under this Agreement were
suspended, and (ii) reinstate (in whole or in part) any of its obligations
which were suspended.

 

(b)                                 If
the Executive is removed from office and/or permanently prohibited from
participating in the conduct of the Employers’ affairs by an order issued under
Section 8(e)(4) or Section 8(g)(1) of the FDIA (12 U.S.C.
§§1818(e)(4) and (g)(1)), all obligations of the Employers under this Agreement
shall terminate as of the effective date of the order, but vested rights of the
Executive and the Employers as of the date of termination shall not be
affected.

 

(c)                                  If
the Bank is in default, as defined in Section 3(x)(1) of the FDIA (12
U.S.C. §1813(x)(1)), all obligations under this Agreement shall terminate as of
the date of default, but vested rights of the Executive and the Employers as of
the date of termination shall not be affected.

 

(d)                                 All
obligations under this Agreement shall be terminated pursuant to 12 C.F.R.
§563.39(b)(5) (except to the extent that it is determined that continuation of
the Agreement for the continued operation of the Employers is necessary):  (i) by the Director of the Office of Thrift
Supervision (“OTS”), or his/her designee, at the time the Federal Deposit
Insurance Corporation (“FDIC”) enters into an agreement to provide assistance
to or on behalf of the Bank under the authority contained in Section 13(c)
of the FDIA (12 U.S.C. §1823(c)); or (ii) by the Director of the OTS, or his/her
designee, at the time the Director or his/her designee approves a supervisory
merger to resolve problems related to operation of the Bank or when the Bank is
determined by the Director of the OTS to be in an unsafe or unsound condition,
but vested rights of the Executive and the Employers as of the date of
termination shall not be affected.

 

18.                               Regulatory
Prohibition.  Notwithstanding any
other provision of this Agreement to the contrary, any payments made to the
Executive pursuant to this Agreement, or otherwise, are subject to and
conditioned upon their compliance with Section 18(k) of the Federal
Deposit Insurance Act (12 U.S.C. §1828(k)) and the regulations promulgated
thereunder, including 12 C.F.R. Part 359.

 

19.                               Payment
of Costs and Legal Fees and Reinstatement of Benefits.  In the event any dispute or controversy
arising under or in connection with the Executive’s termination is resolved in
favor of the Executive, whether by judgment, arbitration or settlement, the
Executive shall be entitled to the payment of (a) all legal fees incurred
by the Executive in resolving such dispute or controversy, and (2) any
back-pay, including Base Salary, bonuses and any other cash compensation,
fringe benefits and any compensation and benefits due to the Executive under
this Agreement.

 

20.                               Entire
Agreement.  This Agreement embodies
the entire agreement between the Employers and the Executive with respect to
the matters agreed to herein.  All prior
agreements between the Employers and the Executive and between The Oakley
Improved Building & Loan Company and the Executive with respect to the
matters agreed to herein are hereby superseded and shall have no force or
effect.  Notwithstanding the foregoing,
nothing contained in this Agreement shall affect the agreement of even date
being entered into between the Corporation and the Executive.

 

9

 

IN WITNESS WHEREOF, this Agreement has been
executed as of the date first above written.

 

	
   

  	
  PEOPLES  COMMUNITY BANCORP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Jerry D. Williams

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PEOPLES COMMUNITY BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Jerry D. Williams

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
    /s/ Thomas J. Noe

  
	
   

  	
   

  	
  Thomas J. Noe

  
	
   

  	
   

  	
   

  

 

10

 

EMPLOYMENT
AGREEMENT

 

EMPLOYMENT AGREEMENT, dated this 29th day of March 2000,
between Peoples Community Bancorp, Inc. (the “Corporation”), Peoples Community
Bank, a Federally chartered savings bank and a wholly owned subsidiary of the
Corporation (the “Bank”), and John E. Rathkamp (the “Executive”).

 

WITNESSETH

 

WHEREAS, the Employers desire to be ensured
of the Executive’s active participation in the business of the Employers;

 

WHEREAS, in order to induce the Executive to
serve in the employ of the Employers and in consideration of the Executive’s
agreeing to serve in the employ of the Employers, the parties desire to specify
the severance benefits which shall be due the Executive by the Employers in the
event that his employment with the Employers is terminated under specified
circumstances;

 

NOW THEREFORE, in consideration of the mutual
agreements herein contained, and upon the other terms and conditions
hereinafter provided, the parties hereby agree as follows:

 

1.                                      Definitions.  The following words and terms shall have the
meanings set forth below for the purposes of this Agreement:

 

(a)                                  Average Annual Compensation.  The Executive’s “Average Annual Compensation”
for purposes of this Agreement shall be deemed to mean the average level of
compensation paid to the Executive by the Employers or any subsidiary thereof
during the most recent five taxable years preceding the Date of Termination and
which was either (i) included in the Executive’s gross income for tax
purposes, including but not limited to Base Salary, bonuses and amounts taxable
to the Executive under any qualified or non-qualified employee benefit plans of
the Employers, or (ii) deferred at the election of the Executive.

 

(b)                                 Base Salary.  “Base Salary” shall have the meaning set
forth in Section 3(a) hereof.

 

(c)                                  Cause. Termination of the Executive’s
employment for “Cause” shall mean termination because of personal dishonesty,
incompetence, willful misconduct, breach of fiduciary duty involving personal
profit, intentional failure to perform stated duties, willful violation of any
law, rule or regulation (other than traffic violations or similar offenses) or
final cease-and-desist order or material breach of any provision of this
Agreement.

 

(d)                                 Change in Control of the Corporation.  “Change in Control of the Corporation” shall
mean the occurrence of any of the following: 
(i) the acquisition of control of the Corporation as defined in 12
C.F.R. §574.4, unless a presumption of control is successfully

 

 

rebutted or unless the transaction is exempted
by 12 C.F.R. §574.3(c)(vii), or any successor to such sections; (ii) an
event that would be required to be reported in response to Item 1(a) of Form 8-K
or Item 6(e) of Schedule 14A of Regulation 14A pursuant to the
Securities Exchange Act of 1934, as amended (“Exchange Act”), or any successor
thereto, whether or not any class of securities of the Corporation is
registered under the Exchange Act; (iii) any “person” (as such term is
used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Corporation representing 20% or more of the
combined voting power of the Corporation’s then outstanding securities; or (iv)
during any period of three consecutive years, individuals who at the beginning
of such period constitute the Board of Directors of the Corporation cease for
any reason to constitute at least a majority thereof unless the election, or
the nomination for election by stockholders, of each new director was approved
by a vote of at least two-thirds of the directors then still in office who were
directors at the beginning of the period.

 

(e)                                  Code. 
“Code” shall mean the Internal Revenue Code of 1986, as amended.

 

(f)                                    Date of Termination.  “Date of Termination” shall mean (i) if the
Executive’s employment is terminated for Cause or for Disability, the date
specified in the Notice of Termination, and (ii) if the Executive’s employment
is terminated for any other reason, the date on which a Notice of Termination
is given or as specified in such Notice.

 

(g)                                 Disability. 
Termination by the Employers of the Executive’s employment based on “Disability”
shall mean termination because of any physical or mental impairment which
qualifies the Executive for disability benefits under the applicable long-term
disability plan maintained by the Employers or any subsidiary or, if no such
plan applies, which would qualify the Executive for disability benefits under
the Federal Social Security System.

 

(h)                                 Good Reason.  Termination by the Executive of the Executive’s
employment for “Good Reason” shall mean termination by the Executive within
twenty-four (24) months following a Change in Control of the Corporation based
on:

 

(i)                                     Without
the Executive’s express written consent, the failure to elect or to re-elect or
to appoint or to re-appoint the Executive to the office of Secretary of the
Employers or a material adverse change made by the Employers in the Executive’s
functions, duties or responsibilities as Secretary of the Employers;

 

(ii)                                  Without
the Executive’s express written consent, a reduction by either of the Employers
in the Executive’s Base Salary as the same may be increased from time to time
or, except to the extent permitted by Section 3(b) hereof, a reduction in
the package of fringe benefits provided to the Executive, taken as a whole;

 

2

 

(iii)                               The
principal executive office of either of the Employers is relocated outside of
the Lebanon, Ohio area or, without the Executive’s express written consent,
either of the Employers require the Executive to be based anywhere other than
an area in which the Employers’ principal executive office is located, except
for required travel on business of the Employers to an extent substantially
consistent with the Executive’s present business travel obligations;

 

(iv)                              Any
purported termination of the Executive’s employment for Disability or
Retirement which is not effected pursuant to a Notice of Termination satisfying
the requirements of paragraph (j) below; or

 

(v)                                 The
failure by the Employers to obtain the assumption of and agreement to perform
this Agreement by any successor as contemplated in Section 9 hereof.

 

(i)                                     IRS. 
IRS shall mean the Internal Revenue Service.

 

(j)                                     Notice of Termination.  Any purported termination of the Executive’s
employment by the Employers for any reason, including without limitation for
Cause, Disability or Retirement, or by the Executive for any reason, including
without limitation for Good Reason, shall be communicated by written “Notice of
Termination” to the other party hereto. 
For purposes of this Agreement, a “Notice of Termination” shall mean a
dated notice which (i) indicates the specific termination provision in this Agreement
relied upon, (ii) sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of Executive’s employment under the
provision so indicated, (iii) specifies a Date of Termination, which shall be
not less than thirty (30) nor more than ninety (90) days after such Notice of
Termination is given, except in the case of the Employers’ termination of
Executive’s employment for Cause, which shall be effective immediately; and
(iv) is given in the manner specified in Section 10 hereof.

 

(k)                                  Retirement. 
“Retirement” shall mean voluntary termination by the Executive in
accordance with the Employers’ retirement policies, including early retirement,
generally applicable to their salaried employees.

 

3

 

2.                                      Term
of Employment.

 

(a)                                  The
Employers hereby employ the Executive as Secretary, and the Executive hereby
accepts said employment and agrees to render such services to the Employers on
the terms and conditions set forth in this Agreement.  The term of this Agreement shall be a period
of three years commencing as of the date hereof (the “Commencement Date”),
subject to earlier termination as provided herein. Beginning on the day which
is one year subsequent to the Commencement Date, and on each annual anniversary
thereafter, the term of this Agreement shall be extended for a period of one
year in addition to the then-remaining term, provided that the Employers have
not given notice to the Executive in writing at least 60 days prior to such day
that the term of the Agreement shall not be extended further.  Reference herein to the term of this
Agreement shall refer to both such initial term and such extended terms.  The Boards of Directors of the Employers
shall review on a periodic basis (and no less frequently than annually) whether
to permit further extensions of the term of this Agreement.  As part of such review, the Board of
Directors shall consider all relevant factors, including the Executive’s
performance hereunder, and shall either expressly approve further extensions of
the time of this Agreement or decide to provide notice to the contrary.  Effective upon the Commencement Date, any and
all prior agreements with the Employers or with Harvest Home Financial
Corporation, Harvest Home Savings Bank or The Oakley Improved Building and Loan
Company (collectively, the “Former Employers”) shall terminate, with no
obligations to the Executive thereunder on the part of the Former Employers.

 

(b)                                 During
the term of this Agreement, the Executive shall perform such executive services
for the Employers as may be consistent with his titles and from time to time
assigned to him by the Employers’ Boards of Directors.

 

3.                                      Compensation
and Benefits.

 

(a)                                  The
Employers shall compensate and pay the Executive for his services during the
term of this Agreement at a minimum base salary of $75,000.00 per year (“Base
Salary”), which may be increased from time to time in such amounts as may be
determined by the Boards of Directors of the Employers and may not be decreased
without the Executive’s express written consent.  In addition to his Base Salary, the Executive
shall be entitled to receive during the term of this Agreement such bonus
payments as may be determined by the Boards of Directors of the Employers.

 

(b)                                 During
the term of this Agreement, the Executive shall be entitled to participate in
and receive the benefits of any pension or other retirement benefit plan,
profit sharing, stock option, employee stock ownership, or other plans,
benefits and privileges given to employees and executives of the Employers, to
the extent commensurate with his then duties and responsibilities, as fixed by
the Boards of Directors of the Employers. 
The Employers shall not make any changes in such plans, benefits or
privileges which would adversely affect the Executive’s rights or benefits
thereunder, unless such change occurs pursuant to a program applicable to all
executive officers of the Employers and does not result in a proportionately greater
adverse change in the rights of or benefits to the Executive as compared with
any other executive officer of the Employers. 
Nothing paid to the Executive under any plan or arrangement presently in
effect or made available in the future shall be deemed to be in lieu of the
salary payable to the Executive pursuant to Section 3(a) hereof.

 

(c)                                  During
the term of this Agreement, the Executive shall be entitled to paid annual
vacation in accordance with the policies as established from time to time by
the Boards of Directors of the Employers. 
The Executive shall not be entitled to receive any additional
compensation from the Employers for failure to take a vacation, nor shall the
Executive be able to accumulate unused vacation time from one year to the next,
except to the extent authorized by the Boards of Directors of the Employers.

 

4

 

(d)                                 In
the event the Executive’s employment is terminated due to Disability or
Retirement, the Employers shall provide continued life, medical, dental and
disability coverage substantially identical to the coverage maintained by the
Employers for the Executive immediately prior to his termination.  Such coverage shall cease upon the expiration
of the remaining term of this Agreement.

 

(e)                                  The
Executive’s compensation, benefits and expenses shall be paid by the
Corporation and the Bank in the same proportion as the time and services
actually expended by the Executive on behalf of each respective Employer.

 

4.                                      Expenses.  The Employers shall reimburse the Executive
or otherwise provide for or pay for all reasonable expenses incurred by the
Executive in furtherance of or in connection with the business of the
Employers, including, but not by way of limitation, automobile expenses and
other traveling expenses, and all reasonable entertainment expenses (whether
incurred at the Executive’s residence, while traveling or otherwise), subject
to such reasonable documentation and other limitations as may be established by
the Boards of Directors of the Employers. 
If such expenses are paid in the first instance by the Executive, the
Employers shall reimburse the Executive therefor.

 

5.                                      Termination.

 

(a)                                  The
Employers shall have the right, at any time upon prior Notice of Termination,
to terminate the Executive’s employment hereunder for any reason, including
without limitation termination for Cause, Disability or Retirement, and the
Executive shall have the right, upon prior Notice of Termination, to terminate
his employment hereunder for any reason.

 

(b)                                 In
the event that (i) the Executive’s employment is terminated by the Employers
for Cause or (ii) the Executive terminates his employment hereunder other than
for Disability, Retirement, death or Good Reason, the Executive shall have no
right pursuant to this Agreement to compensation or other benefits for any
period after the applicable Date of Termination.

 

(c)                                  In
the event that the Executive’s employment is terminated as a result of
Disability, Retirement or the Executive’s death during the term of this Agreement,
the Executive shall have no right pursuant to this Agreement to compensation or
other benefits for any period after the applicable Date of Termination, except
as provided for in Section 3(d) hereof.

 

(d)                                 In
the event that (i) the Executive’s employment is terminated by the Employers
for other than Cause, Disability, Retirement or the Executive’s death or (ii)
such employment is terminated by the Executive (a) due to a material breach of
this Agreement by the Employers, which breach has not been cured within fifteen
(15) days after a written notice of non-compliance has been given by the
Executive to the

 

5

 

Employers, or (b) for Good Reason, then the
Employers shall, subject to the provisions of Section 6 hereof, if
applicable

 

(A)                              pay
to the Executive, in either thirty-six (36) equal monthly installments
beginning with the first business day of the month following the Date of
Termination or in a lump sum within five business days of the Date of
Termination (at the Executive’s election), a cash severance amount equal to
three (3) times that portion of the Executive’s Average Annual Compensation
paid by the Employers, and

 

(B)                                maintain
and provide for a period ending at the earlier of (i) the expiration of the
remaining term of employment pursuant hereto prior to the Notice of Termination
or (ii) the date of the Executive’s full-time employment by another employer
(provided that the Executive is entitled under the terms of such employment to
benefits substantially similar to those described in this subparagraph (B)), at
no cost to the Executive, the Executive’s continued participation in all group
insurance, life insurance, health and accident insurance, disability insurance
and other employee benefit plans, programs and arrangements offered by the
Employers in which the Executive was entitled to participate immediately prior
to the Date of Termination (excluding (x) stock option and restricted stock
plans of the Employers, (y) bonuses and other items of cash compensation
included in Average Annual Compensation and (z) other benefits, or
portions thereof, included in Average Annual Compensation), provided that in
the event that the Executive’s participation in any plan, program or
arrangement as provided in this subparagraph (B) is barred, or during such
period any such plan, program or arrangement is discontinued or the benefits
thereunder are materially reduced, the Employers shall arrange to provide the
Executive with benefits substantially similar to those which the Executive was
entitled to receive under such plans, programs and arrangements immediately
prior to the Date of Termination.

 

6.                                      Limitation
of Benefits under Certain Circumstances. 
If the payments and benefits pursuant to Section 5 hereof, either
alone or together with other payments and benefits which the Executive has the
right to receive from the Employers, would constitute a “parachute payment”
under Section 280G of the Code, the payments and benefits payable by the
Employers pursuant to Section 5 hereof shall be reduced, in the manner
determined by the Executive, by the amount, if any, which is the minimum
necessary to result in no portion of the payments and benefits payable by the
Employers under Section 5 being non-deductible to the Employers pursuant
to Section 280G of the Code and subject to the excise tax imposed under Section 4999
of the Code.  The parties hereto agree
that the present value of the payments and benefits payable pursuant to this Agreement
to the Executive upon termination shall be limited to three times the
Executive’s Average Annual Compensation. 
The determination of any reduction in the payments and benefits to be
made pursuant to Section 5 shall be based upon the opinion of independent
counsel selected by the Employers’ independent public accountants and paid by
the Employers.  Such counsel shall be
reasonably acceptable to the Employers and the Executive; shall promptly
prepare the foregoing opinion, but in no event later

 

6

 

than thirty (30) days from the Date of
Termination; and may use such actuaries as such counsel deems necessary or
advisable for the purpose.  Nothing
contained herein shall result in a reduction of any payments or benefits to
which the Executive may be entitled upon termination of employment under any
circumstances other than as specified in this Section 6, or a reduction in
the payments and benefits specified in Section 5 below zero.

 

7.                                      Mitigation;
Exclusivity of Benefits.

 

(a)                                  The
Executive shall not be required to mitigate the amount of any benefits
hereunder by seeking other employment or otherwise, nor shall the amount of any
such benefits be reduced by any compensation earned by the Executive as a
result of employment by another employer after the Date of Termination or
otherwise.

 

(b)                                 The
specific arrangements referred to herein are not intended to exclude any other
benefits which may be available to the Executive upon a termination of
employment with the Employers pursuant to employee benefit plans of the
Employers or otherwise.

 

8.                                      Withholding.  All payments required to be made by the
Employers hereunder to the Executive shall be subject to the withholding of
such amounts, if any, relating to tax and other payroll deductions as the
Employers may reasonably determine should be withheld pursuant to any
applicable law or regulation.

 

9.                                      Assignability.  The Employers may assign this Agreement and
its rights and obligations hereunder in whole, but not in part, to any
corporation, bank or other entity with or into which the Employers may
hereafter merge or consolidate or to which the Employers may transfer all or
substantially all of its assets, if in any such case said corporation, bank or
other entity shall by operation of law or expressly in writing assume all
obligations of the Employers hereunder as fully as if it had been originally
made a party hereto, but may not otherwise assign this Agreement or its rights
and obligations hereunder.  The Executive
may not assign or transfer this Agreement or any rights or obligations
hereunder.

 

10.                               Notice.  For the purposes of this Agreement, notices
and all other communications provided for in this Agreement shall be in writing
and shall be deemed to have been duly given when delivered or mailed by
certified or registered mail, return receipt requested, postage prepaid,
addressed to the respective addresses set forth below:

 

	
  To the Employers:

  	
   

  	
  Boards of Directors

  
	
   

  	
   

  	
  Peoples Bancorp, Inc.

  
	
   

  	
   

  	
  Peoples Community Bank

  
	
   

  	
   

  	
  11 South Broadway

  
	
   

  	
   

  	
  Lebanon, Ohio 45036-1780

  
	
   

  	
   

  	
   

  
	
  To the Executive:

  	
   

  	
  John E. Rathkamp

  
	
   

  	
   

  	
  4552 Fairview Lane

  
	
   

  	
   

  	
  Cincinnati, Ohio 45247

  

 

7

 

11.                               Amendment;
Waiver.  No provisions of this
Agreement may be modified, waived or discharged unless such waiver, modification
or discharge is agreed to in writing and signed by the Executive and such
officer or officers as may be specifically designated by the Boards of
Directors of the Employers to sign on their behalf.  No waiver by any party hereto at any time of
any breach by any other party hereto of, or compliance with, any condition or
provision of this Agreement to be performed by such other party shall be deemed
a waiver of similar or dissimilar provisions or conditions at the same or at
any prior or subsequent time.

 

12.                               Governing
Law.  The validity, interpretation,
construction and performance of this Agreement shall be governed by the laws of
the United States where applicable and otherwise by the substantive laws of the
State of Ohio.

 

13.                               Nature
of Obligations.  Nothing contained
herein shall create or require the Employers to create a trust of any kind to
fund any benefits which may be payable hereunder, and to the extent that the
Executive acquires a right to receive benefits from the Employers hereunder, such
right shall be no greater than the right of any unsecured general creditor of
the Employers.

 

14.                               Headings.  The section headings contained in this
Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement.

 

15.                               Validity.  The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provisions of this Agreement, which shall remain in full force and
effect.

 

16.                               Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

 

17.                               Regulatory
Actions.  The following provisions
shall be applicable to the parties to the extent that they are required to be
included in employment agreements between a savings association and its
employees pursuant to Section 563.39(b) of the Regulations Applicable to
All Savings Associations, 12 C.F.R. §563.39(b), or any successor thereto, and
shall be controlling in the event of a conflict with any other provision of
this Agreement, including without limitation Section 5 hereof.

 

(a)                                  If
the Executive is suspended from office and/or temporarily prohibited from
participating in the conduct of the Employers’ affairs pursuant to notice
served under Section 8(e)(3) or Section 8(g)(1) of the Federal
Deposit Insurance Act (“FDIA”) (12 U.S.C. §§1818(e)(3) and 1818(g)(1)), the
Employers’ obligations under this Agreement shall be suspended as of the date
of service, unless stayed by appropriate proceedings.  If the charges in the notice are dismissed,
the Employers may, in their discretion: 
(i) pay the Executive all or part of the compensation withheld while its

 

8

 

obligations under this Agreement were
suspended, and (ii) reinstate (in whole or in part) any of its obligations
which were suspended.

 

(b)                                 If
the Executive is removed from office and/or permanently prohibited from
participating in the conduct of the Employers’ affairs by an order issued under
Section 8(e)(4) or Section 8(g)(1) of the FDIA (12 U.S.C.
§§1818(e)(4) and (g)(1)), all obligations of the Employers under this Agreement
shall terminate as of the effective date of the order, but vested rights of the
Executive and the Employers as of the date of termination shall not be
affected.

 

(c)                                  If
the Bank is in default, as defined in Section 3(x)(1) of the FDIA (12
U.S.C. §1813(x)(1)), all obligations under this Agreement shall terminate as of
the date of default, but vested rights of the Executive and the Employers as of
the date of termination shall not be affected.

 

(d)                                 All
obligations under this Agreement shall be terminated pursuant to 12 C.F.R.
§563.39(b)(5) (except to the extent that it is determined that continuation of
the Agreement for the continued operation of the Employers is necessary):  (i) by the Director of the Office of Thrift
Supervision (“OTS”), or his/her designee, at the time the Federal Deposit
Insurance Corporation (“FDIC”) enters into an agreement to provide assistance
to or on behalf of the Bank under the authority contained in Section 13(c)
of the FDIA (12 U.S.C. §1823(c)); or (ii) by the Director of the OTS, or
his/her designee, at the time the Director or his/her designee approves a
supervisory merger to resolve problems related to operation of the Bank or when
the Bank is determined by the Director of the OTS to be in an unsafe or unsound
condition, but vested rights of the Executive and the Employers as of the date
of termination shall not be affected.

 

18.                               Regulatory
Prohibition.  Notwithstanding any
other provision of this Agreement to the contrary, any payments made to the
Executive pursuant to this Agreement, or otherwise, are subject to and conditioned
upon their compliance with Section 18(k) of the Federal Deposit Insurance
Act (12 U.S.C. §1828(k)) and the regulations promulgated thereunder, including
12 C.F.R. Part 359.

 

19.                               Payment
of Costs and Legal Fees and Reinstatement of Benefits.  In the event any dispute or controversy
arising under or in connection with the Executive’s termination is resolved in
favor of the Executive, whether by judgment, arbitration or settlement, the
Executive shall be entitled to the payment of (a) all legal fees incurred
by the Executive in resolving such dispute or controversy, and (2) any
back-pay, including Base Salary, bonuses and any other cash compensation,
fringe benefits and any compensation and benefits due to the Executive under
this Agreement.

 

20.                               Entire
Agreement.  This Agreement embodies
the entire agreement between the Employers and the Executive and between
Harvest Home Financial Corporation and Harvest Home Savings Bank and the
Executive with respect to the matters agreed to herein.  All prior agreements between the Employers
and the Executive with respect to the matters agreed to herein are hereby
superseded and shall have no force or effect. 
Notwithstanding the foregoing, nothing contained in this Agreement shall
affect the agreement of even date being entered into between the Corporation
and the Executive.

 

9

 

IN WITNESS WHEREOF, this Agreement has been
executed as of the date first above written.

 

	
   

  	
  PEOPLES  COMMUNITY BANCORP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Jerry D. Williams

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PEOPLES COMMUNITY BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Jerry D. Williams

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
    /s/ John E. Rathkamp

  
	
   

  	
   

  	
  John E. Rathkamp

  

 

10

 

EMPLOYMENT
AGREEMENT

 

EMPLOYMENT AGREEMENT, dated this 29th day of March 2000,
between Peoples Community Bancorp, Inc. (the “Corporation”), Peoples Community
Bank, a Federally chartered savings bank and a wholly owned subsidiary of the
Corporation (the “Bank”), and Teresa O’Quinn (the “Executive”).

 

WITNESSETH

 

WHEREAS, the Employers desire to be ensured
of the Executive’s active participation in the business of the Employers;

 

WHEREAS, in order to induce the Executive to
serve in the employ of the Employers and in consideration of the Executive’s
agreeing to serve in the employ of the Employers, the parties desire to specify
the severance benefits which shall be due the Executive by the Employers in the
event that his employment with the Employers is terminated under specified
circumstances;

 

NOW THEREFORE, in consideration of the mutual
agreements herein contained, and upon the other terms and conditions
hereinafter provided, the parties hereby agree as follows:

 

1.                                      Definitions.  The following words and terms shall have the
meanings set forth below for the purposes of this Agreement:

 

(a)                                  Average Annual Compensation.  The Executive’s “Average Annual Compensation”
for purposes of this Agreement shall be deemed to mean the average level of
compensation paid to the Executive by the Employers or any subsidiary thereof
during the most recent five taxable years preceding the Date of Termination and
which was either (i) included in the Executive’s gross income for tax
purposes, including but not limited to Base Salary, bonuses and amounts taxable
to the Executive under any qualified or non-qualified employee benefit plans of
the Employers, or (ii) deferred at the election of the Executive.

 

(b)                                 Base Salary.  “Base Salary” shall have the meaning set
forth in Section 3(a) hereof.

 

(c)                                  Cause. Termination of the Executive’s
employment for “Cause” shall mean termination because of personal dishonesty,
incompetence, willful misconduct, breach of fiduciary duty involving personal
profit, intentional failure to perform stated duties, willful violation of any
law, rule or regulation (other than traffic violations or similar offenses) or
final cease-and-desist order or material breach of any provision of this
Agreement.

 

(d)                                 Change in Control of the Corporation.  “Change in Control of the Corporation” shall
mean the occurrence of any of the following: 
(i) the acquisition of control of the Corporation as defined in 12
C.F.R. §574.4, unless a presumption of control is successfully

 

 

rebutted or unless the transaction is exempted
by 12 C.F.R. §574.3(c)(vii), or any successor to such sections; (ii) an
event that would be required to be reported in response to Item 1(a) of Form 8-K
or Item 6(e) of Schedule 14A of Regulation 14A pursuant to the
Securities Exchange Act of 1934, as amended (“Exchange Act”), or any successor
thereto, whether or not any class of securities of the Corporation is
registered under the Exchange Act; (iii) any “person” (as such term is
used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Corporation representing 20% or more of the
combined voting power of the Corporation’s then outstanding securities; or (iv)
during any period of three consecutive years, individuals who at the beginning
of such period constitute the Board of Directors of the Corporation cease for
any reason to constitute at least a majority thereof unless the election, or
the nomination for election by stockholders, of each new director was approved
by a vote of at least two-thirds of the directors then still in office who were
directors at the beginning of the period.

 

(e)                                  Code. 
“Code” shall mean the Internal Revenue Code of 1986, as amended.

 

(f)                                    Date of Termination.  “Date of Termination” shall mean (i) if the
Executive’s employment is terminated for Cause or for Disability, the date
specified in the Notice of Termination, and (ii) if the Executive’s employment
is terminated for any other reason, the date on which a Notice of Termination
is given or as specified in such Notice.

 

(g)                                 Disability. 
Termination by the Employers of the Executive’s employment based on “Disability”
shall mean termination because of any physical or mental impairment which
qualifies the Executive for disability benefits under the applicable long-term
disability plan maintained by the Employers or any subsidiary or, if no such
plan applies, which would qualify the Executive for disability benefits under
the Federal Social Security System.

 

(h)                                 Good Reason.  Termination by the Executive of the Executive’s
employment for “Good Reason” shall mean termination by the Executive within
twenty-four (24) months following a Change in Control of the Corporation based
on:

 

(i)                                     Without
the Executive’s express written consent, the failure to elect or to re-elect or
to appoint or to re-appoint the Executive to the office of Vice President of
the Employers or a material adverse change made by the Employers in the
Executive’s functions, duties or responsibilities as Vice President of the
Employers;

 

(ii)                                  Without
the Executive’s express written consent, a reduction by either of the Employers
in the Executive’s Base Salary as the same may be increased from time to time
or, except to the extent permitted by Section 3(b) hereof, a reduction in
the package of fringe benefits provided to the Executive, taken as a whole;

 

2

 

(iii)                               The
principal executive office of either of the Employers is relocated outside of
the Lebanon, Ohio area or, without the Executive’s express written consent,
either of the Employers require the Executive to be based anywhere other than
an area in which the Employers’ principal executive office is located, except
for required travel on business of the Employers to an extent substantially
consistent with the Executive’s present business travel obligations;

 

(iv)                              Any
purported termination of the Executive’s employment for Disability or
Retirement which is not effected pursuant to a Notice of Termination satisfying
the requirements of paragraph (j) below; or

 

(v)                                 The
failure by the Employers to obtain the assumption of and agreement to perform
this Agreement by any successor as contemplated in Section 9 hereof.

 

(i)                                     IRS. 
IRS shall mean the Internal Revenue Service.

 

(j)                                     Notice of Termination.  Any purported termination of the Executive’s
employment by the Employers for any reason, including without limitation for
Cause, Disability or Retirement, or by the Executive for any reason, including
without limitation for Good Reason, shall be communicated by written “Notice of
Termination” to the other party hereto. 
For purposes of this Agreement, a “Notice of Termination” shall mean a
dated notice which (i) indicates the specific termination provision in this
Agreement relied upon, (ii) sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of Executive’s
employment under the provision so indicated, (iii) specifies a Date of
Termination, which shall be not less than thirty (30) nor more than ninety (90)
days after such Notice of Termination is given, except in the case of the
Employers’ termination of Executive’s employment for Cause, which shall be
effective immediately; and (iv) is given in the manner specified in Section 10
hereof.

 

(k)                                  Retirement. 
“Retirement” shall mean voluntary termination by the Executive in
accordance with the Employers’ retirement policies, including early retirement,
generally applicable to their salaried employees.

 

3

 

2.                                      Term
of Employment.

 

(a)                                  The
Employers hereby employ the Executive as Vice President, and the Executive
hereby accepts said employment and agrees to render such services to the
Employers on the terms and conditions set forth in this Agreement.  The term of this Agreement shall be a period
of three years commencing as of the date hereof (the “Commencement Date”),
subject to earlier termination as provided herein. Beginning on the day which
is one year subsequent to the Commencement Date, and on each annual anniversary
thereafter, the term of this Agreement shall be extended for a period of one
year in addition to the then-remaining term, provided that the Employers have
not given notice to the Executive in writing at least 60 days prior to such day
that the term of the Agreement shall not be extended further.  Reference herein to the term of this
Agreement shall refer to both such initial term and such extended terms.  The Boards of Directors of the Employers
shall review on a periodic basis (and no less frequently than annually) whether
to permit further extensions of the term of this Agreement.  As part of such review, the Board of
Directors shall consider all relevant factors, including the Executive’s
performance hereunder, and shall either expressly approve further extensions of
the time of this Agreement or decide to provide notice to the contrary.  Effective upon the Commencement Date, any and
all prior agreements with the Employers or with Harvest Home Financial Corporation,
Harvest Home Savings Bank or The Oakley Improved Building and Loan Company
(collectively, the “Former Employers”) shall terminate, with no obligations to
the Executive thereunder on the part of the Former Employers.

 

(b)                                 During
the term of this Agreement, the Executive shall perform such executive services
for the Employers as may be consistent with his titles and from time to time
assigned to him by the Employers’ Boards of Directors.

 

3.                                      Compensation
and Benefits.

 

(a)                                  The
Employers shall compensate and pay the Executive for his services during the
term of this Agreement at a minimum base salary of $60,000.00 per year (“Base
Salary”), which may be increased from time to time in such amounts as may be
determined by the Boards of Directors of the Employers and may not be decreased
without the Executive’s express written consent.  In addition to his Base Salary, the Executive
shall be entitled to receive during the term of this Agreement such bonus
payments as may be determined by the Boards of Directors of the Employers.

 

(b)                                 During
the term of this Agreement, the Executive shall be entitled to participate in
and receive the benefits of any pension or other retirement benefit plan,
profit sharing, stock option, employee stock ownership, or other plans,
benefits and privileges given to employees and executives of the Employers, to
the extent commensurate with his then duties and responsibilities, as fixed by
the Boards of Directors of the Employers. 
The Employers shall not make any changes in such plans, benefits or
privileges which would adversely affect the Executive’s rights or benefits
thereunder, unless such change occurs pursuant to a program applicable to all
executive officers of the Employers and does not result in a proportionately greater
adverse change in the rights of or benefits to the Executive as compared with
any other executive officer of the Employers. 
Nothing paid to the Executive under any plan or arrangement presently in
effect or made available in the future shall be deemed to be in lieu of the
salary payable to the Executive pursuant to Section 3(a) hereof.

 

(c)                                  During
the term of this Agreement, the Executive shall be entitled to paid annual
vacation in accordance with the policies as established from time to time by
the Boards of Directors of the Employers. 
The Executive shall not be entitled to receive any additional
compensation from the Employers for failure to take a vacation, nor shall the
Executive be able to accumulate unused vacation time from one year to the next,
except to the extent authorized by the Boards of Directors of the Employers.

 

4

 

(d)                                 In
the event the Executive’s employment is terminated due to Disability or
Retirement, the Employers shall provide continued life, medical, dental and
disability coverage substantially identical to the coverage maintained by the
Employers for the Executive immediately prior to his termination.  Such coverage shall cease upon the expiration
of the remaining term of this Agreement.

 

(e)                                  The
Executive’s compensation, benefits and expenses shall be paid by the
Corporation and the Bank in the same proportion as the time and services
actually expended by the Executive on behalf of each respective Employer.

 

4.                                      Expenses.  The Employers shall reimburse the Executive
or otherwise provide for or pay for all reasonable expenses incurred by the
Executive in furtherance of or in connection with the business of the
Employers, including, but not by way of limitation, automobile expenses and other
traveling expenses, and all reasonable entertainment expenses (whether incurred
at the Executive’s residence, while traveling or otherwise), subject to such
reasonable documentation and other limitations as may be established by the
Boards of Directors of the Employers.  If
such expenses are paid in the first instance by the Executive, the Employers
shall reimburse the Executive therefor.

 

5.                                      Termination.

 

(a)                                  The
Employers shall have the right, at any time upon prior Notice of Termination,
to terminate the Executive’s employment hereunder for any reason, including
without limitation termination for Cause, Disability or Retirement, and the
Executive shall have the right, upon prior Notice of Termination, to terminate
his employment hereunder for any reason.

 

(b)                                 In
the event that (i) the Executive’s employment is terminated by the Employers
for Cause or (ii) the Executive terminates his employment hereunder other than
for Disability, Retirement, death or Good Reason, the Executive shall have no
right pursuant to this Agreement to compensation or other benefits for any
period after the applicable Date of Termination.

 

(c)                                  In
the event that the Executive’s employment is terminated as a result of
Disability, Retirement or the Executive’s death during the term of this
Agreement, the Executive shall have no right pursuant to this Agreement to
compensation or other benefits for any period after the applicable Date of
Termination, except as provided for in Section 3(d) hereof.

 

(d)                                 In
the event that (i) the Executive’s employment is terminated by the Employers
for other than Cause, Disability, Retirement or the Executive’s death or (ii)
such employment is terminated by the Executive (a) due to a material breach of
this Agreement by the Employers, which breach has not been cured within fifteen
(15) days after a written notice of non-compliance has been given by the
Executive to the

 

5

 

Employers, or (b) for Good Reason, then the
Employers shall, subject to the provisions of Section 6 hereof, if
applicable

 

(A)                              pay
to the Executive, in either thirty-six (36) equal monthly installments
beginning with the first business day of the month following the Date of
Termination or in a lump sum within five business days of the Date of
Termination (at the Executive’s election), a cash severance amount equal to
three (3) times that portion of the Executive’s Average Annual Compensation
paid by the Employers, and

 

(B)                                maintain
and provide for a period ending at the earlier of (i) the expiration of the
remaining term of employment pursuant hereto prior to the Notice of Termination
or (ii) the date of the Executive’s full-time employment by another employer
(provided that the Executive is entitled under the terms of such employment to
benefits substantially similar to those described in this subparagraph (B)), at
no cost to the Executive, the Executive’s continued participation in all group
insurance, life insurance, health and accident insurance, disability insurance
and other employee benefit plans, programs and arrangements offered by the
Employers in which the Executive was entitled to participate immediately prior
to the Date of Termination (excluding (x) stock option and restricted stock
plans of the Employers, (y) bonuses and other items of cash compensation
included in Average Annual Compensation and (z) other benefits, or
portions thereof, included in Average Annual Compensation), provided that in
the event that the Executive’s participation in any plan, program or
arrangement as provided in this subparagraph (B) is barred, or during such
period any such plan, program or arrangement is discontinued or the benefits
thereunder are materially reduced, the Employers shall arrange to provide the
Executive with benefits substantially similar to those which the Executive was
entitled to receive under such plans, programs and arrangements immediately
prior to the Date of Termination.

 

6.                                      Limitation
of Benefits under Certain Circumstances. 
If the payments and benefits pursuant to Section 5 hereof, either
alone or together with other payments and benefits which the Executive has the
right to receive from the Employers, would constitute a “parachute payment”
under Section 280G of the Code, the payments and benefits payable by the
Employers pursuant to Section 5 hereof shall be reduced, in the manner
determined by the Executive, by the amount, if any, which is the minimum
necessary to result in no portion of the payments and benefits payable by the
Employers under Section 5 being non-deductible to the Employers pursuant
to Section 280G of the Code and subject to the excise tax imposed under Section 4999
of the Code.  The parties hereto agree
that the present value of the payments and benefits payable pursuant to this
Agreement to the Executive upon termination shall be limited to three times the
Executive’s Average Annual Compensation. 
The determination of any reduction in the payments and benefits to be
made pursuant to Section 5 shall be based upon the opinion of independent
counsel selected by the Employers’ independent public accountants and paid by
the Employers.  Such counsel shall be
reasonably acceptable to the Employers and the Executive; shall promptly
prepare the foregoing opinion, but in no event later

 

6

 

than thirty (30) days from the Date of
Termination; and may use such actuaries as such counsel deems necessary or
advisable for the purpose.  Nothing
contained herein shall result in a reduction of any payments or benefits to
which the Executive may be entitled upon termination of employment under any
circumstances other than as specified in this Section 6, or a reduction in
the payments and benefits specified in Section 5 below zero.

 

7.                                      Mitigation;
Exclusivity of Benefits.

 

(a)                                  The
Executive shall not be required to mitigate the amount of any benefits
hereunder by seeking other employment or otherwise, nor shall the amount of any
such benefits be reduced by any compensation earned by the Executive as a
result of employment by another employer after the Date of Termination or
otherwise.

 

(b)                                 The
specific arrangements referred to herein are not intended to exclude any other
benefits which may be available to the Executive upon a termination of
employment with the Employers pursuant to employee benefit plans of the
Employers or otherwise.

 

8.                                      Withholding.  All payments required to be made by the
Employers hereunder to the Executive shall be subject to the withholding of
such amounts, if any, relating to tax and other payroll deductions as the Employers
may reasonably determine should be withheld pursuant to any applicable law or
regulation.

 

9.                                      Assignability.  The Employers may assign this Agreement and
its rights and obligations hereunder in whole, but not in part, to any
corporation, bank or other entity with or into which the Employers may
hereafter merge or consolidate or to which the Employers may transfer all or
substantially all of its assets, if in any such case said corporation, bank or
other entity shall by operation of law or expressly in writing assume all
obligations of the Employers hereunder as fully as if it had been originally
made a party hereto, but may not otherwise assign this Agreement or its rights
and obligations hereunder.  The Executive
may not assign or transfer this Agreement or any rights or obligations
hereunder.

 

10.                               Notice.  For the purposes of this Agreement, notices
and all other communications provided for in this Agreement shall be in writing
and shall be deemed to have been duly given when delivered or mailed by certified
or registered mail, return receipt requested, postage prepaid, addressed to the
respective addresses set forth below:

 

	
  To the Employers:

  	
   

  	
  Boards of Directors

  
	
   

  	
   

  	
  Peoples Bancorp, Inc.

  
	
   

  	
   

  	
  Peoples Community Bank

  
	
   

  	
   

  	
  11 South Broadway

  
	
   

  	
   

  	
  Lebanon, Ohio 45036-1780

  
	
   

  	
   

  	
   

  
	
  To the Executive:

  	
   

  	
  Teresa O’Quinn

  
	
   

  	
   

  	
  261 Centerbury Court

  
	
   

  	
   

  	
  Cincinnati, Ohio 45246

  

 

7

 

11.                               Amendment;
Waiver.  No provisions of this
Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in writing and signed by the Executive
and such officer or officers as may be specifically designated by the Boards of
Directors of the Employers to sign on their behalf.  No waiver by any party hereto at any time of
any breach by any other party hereto of, or compliance with, any condition or
provision of this Agreement to be performed by such other party shall be deemed
a waiver of similar or dissimilar provisions or conditions at the same or at
any prior or subsequent time.

 

12.                               Governing
Law.  The validity, interpretation,
construction and performance of this Agreement shall be governed by the laws of
the United States where applicable and otherwise by the substantive laws of the
State of Ohio.

 

13.                               Nature
of Obligations.  Nothing contained
herein shall create or require the Employers to create a trust of any kind to
fund any benefits which may be payable hereunder, and to the extent that the
Executive acquires a right to receive benefits from the Employers hereunder,
such right shall be no greater than the right of any unsecured general creditor
of the Employers.

 

14.                               Headings.  The section headings contained in this
Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement.

 

15.                               Validity.  The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provisions of this Agreement, which shall remain in full force and
effect.

 

16.                               Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

 

17.                               Regulatory
Actions.  The following provisions
shall be applicable to the parties to the extent that they are required to be
included in employment agreements between a savings association and its
employees pursuant to Section 563.39(b) of the Regulations Applicable to
All Savings Associations, 12 C.F.R. §563.39(b), or any successor thereto, and
shall be controlling in the event of a conflict with any other provision of
this Agreement, including without limitation Section 5 hereof.

 

(a)                                  If
the Executive is suspended from office and/or temporarily prohibited from
participating in the conduct of the Employers’ affairs pursuant to notice
served under Section 8(e)(3) or Section 8(g)(1) of the Federal
Deposit Insurance Act (“FDIA”) (12 U.S.C. §§1818(e)(3) and 1818(g)(1)), the
Employers’ obligations under this Agreement shall be suspended as of the date
of service, unless stayed by appropriate proceedings.  If the charges in the notice are dismissed,
the Employers may, in their discretion: 
(i) pay the Executive all or part of the compensation withheld while its

 

8

 

obligations under this Agreement were
suspended, and (ii) reinstate (in whole or in part) any of its obligations
which were suspended.

 

(b)                                 If
the Executive is removed from office and/or permanently prohibited from
participating in the conduct of the Employers’ affairs by an order issued under
Section 8(e)(4) or Section 8(g)(1) of the FDIA (12 U.S.C.
§§1818(e)(4) and (g)(1)), all obligations of the Employers under this Agreement
shall terminate as of the effective date of the order, but vested rights of the
Executive and the Employers as of the date of termination shall not be
affected.

 

(c)                                  If
the Bank is in default, as defined in Section 3(x)(1) of the FDIA (12
U.S.C. §1813(x)(1)), all obligations under this Agreement shall terminate as of
the date of default, but vested rights of the Executive and the Employers as of
the date of termination shall not be affected.

 

(d)                                 All
obligations under this Agreement shall be terminated pursuant to 12 C.F.R.
§563.39(b)(5) (except to the extent that it is determined that continuation of
the Agreement for the continued operation of the Employers is necessary):  (i) by the Director of the Office of Thrift
Supervision (“OTS”), or his/her designee, at the time the Federal Deposit
Insurance Corporation (“FDIC”) enters into an agreement to provide assistance
to or on behalf of the Bank under the authority contained in Section 13(c)
of the FDIA (12 U.S.C. §1823(c)); or (ii) by the Director of the OTS, or
his/her designee, at the time the Director or his/her designee approves a
supervisory merger to resolve problems related to operation of the Bank or when
the Bank is determined by the Director of the OTS to be in an unsafe or unsound
condition, but vested rights of the Executive and the Employers as of the date
of termination shall not be affected.

 

18.                               Regulatory
Prohibition.  Notwithstanding any
other provision of this Agreement to the contrary, any payments made to the
Executive pursuant to this Agreement, or otherwise, are subject to and
conditioned upon their compliance with Section 18(k) of the Federal
Deposit Insurance Act (12 U.S.C. §1828(k)) and the regulations promulgated
thereunder, including 12 C.F.R. Part 359.

 

19.                               Payment
of Costs and Legal Fees and Reinstatement of Benefits.  In the event any dispute or controversy
arising under or in connection with the Executive’s termination is resolved in
favor of the Executive, whether by judgment, arbitration or settlement, the
Executive shall be entitled to the payment of (a) all legal fees incurred
by the Executive in resolving such dispute or controversy, and (2) any
back-pay, including Base Salary, bonuses and any other cash compensation,
fringe benefits and any compensation and benefits due to the Executive under
this Agreement.

 

20.                               Entire
Agreement.  This Agreement embodies
the entire agreement between the Employers and the Executive and between
Harvest Home Financial Corporation and Harvest Home Savings Bank and the
Executive with respect to the matters agreed to herein.  All prior agreements between the Employers
and the Executive with respect to the matters agreed to herein are hereby
superseded and shall have no force or effect. 
Notwithstanding the foregoing, nothing contained in this Agreement shall
affect the agreement of even date being entered into between the Corporation
and the Executive.

 

9

 

IN WITNESS WHEREOF, this Agreement has been
executed as of the date first above written.

 

	
   

  	
  PEOPLES  COMMUNITY BANCORP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Jerry D. Williams

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PEOPLES COMMUNITY BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Jerry D. Williams

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
    /s/ Teresa O’Quinn

  
	
   

  	
   

  	
  Teresa O’Quinn

  

 

10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]