Document:

exv10w2

 

Exhibit 10.2

EMPLOYMENT AGREEMENT

     This Employment Agreement (“Agreement”), effective as of July 24, 2006 (the “Effective Date”),
is entered into, by and between MedAire, Inc., a Nevada corporation (“MedAire”), and Roger D.
Sandeen (“Employee”).

     In consideration of Employee’s employment by MedAire, the additional benefits described below,
and the other promises set forth below, the sufficiency of which is hereby acknowledged, the
parties agree as follows:

     1. Duties. MedAire agrees to employ Employee as its Chief Financial Officer under the
terms of this Agreement, and Employee accepts such employment under the terms of this Agreement.
During the term of this Agreement, Employee agrees to devote Employee’s best efforts and entire
business time to furthering the interests of MedAire; to devote the necessary time and attention to
Employee duties; and to perform such duties to the best of Employee abilities. During the term of
this Agreement, Employee agrees that Employee shall maintain loyalty to MedAire; shall take no
action that would be injurious of MedAire’s interests; and will comply with all rules, policies and
regulations of MedAire.

     2. Employment Period.

          (a) Term: Employee shall be employed by MedAire through January 1, 2007 (the “Initial
Term”), unless sooner terminated in accordance with the terms of this Agreement. This Agreement
will be renewed automatically for additional one (1) year periods (each a “Renewal Term”), unless
either party serves written notice of an intent not to renew this Agreement at least three (3)
months before the end of the Initial Term or any subsequent Renewal Term.

          (b) Garden Leave: Notwithstanding Section 2(a), Employee’s employment and this
Agreement may not be terminated “by MedAire without cause” (as defined below). However, MedAire
may, at any time and for any reason (or no reason), elect to place Employee on garden leave for
nine (9) months. During such nine (9) month garden leave, Employee will continue to receive all
base salary and benefits in place as of the date Employee was placed on garden leave; conditioned
upon Employee’s (i) execution and delivery to MedAire of a legal release, in form and substance
acceptable to MedAire, in which Employee releases MedAire and its affiliates, directors, officers,
employees, agents and others affiliated with MedAire from any and all claims arising on or before
the date Employee is placed on garden leave (other than with respect to any rights under this
Agreement, any instrument evidencing any vested equity interest in MedAire, or with respect to
indemnification by MedAire in accordance with that certain indemnification agreement between
MedAire and Employee effective July 24, 2006, a copy of which is attached hereto as Exhibit
A) and (ii) continuing compliance with Employee’s obligations to MedAire as set forth in this
Agreement and the Confidentiality and Non-Solicitation Agreement entered into by MedAire and
Employee, a copy of which is attached hereto as Exhibit B (the “Confidentiality and
Non-Solicitation Agreement”). At the end of such nine (9) month garden-leave period, Employee’s
employment and this Agreement shall terminate and all obligations to Employee hereunder shall
terminate. Employee’s rights under COBRA shall commence at the completion of a garden leave
period.

 Page 1 of 5

 

          (c) Definition of Cause: For purposes of this Section, termination “by MedAire
without cause” shall mean termination by MedAire of Employee’s employment on any basis
(including no reason or no cause) other than termination of Employee’s employment based on (A) any
act or omission by Employee which constitutes dishonesty, disloyalty, fraud, deceit, gross
negligence, willful misconduct or recklessness, and which is material and directly or indirectly
detrimental to MedAire’s best interest; (B) Employee’s inattention to, neglect of, or any other
material failure to competently perform any assigned duties or follow reasonable policies or
directives after receiving ten (10) business days’ written notice and opportunity to cure; (C) any
act or omission by Employee that constitutes a felony; or (D) any other breach of this Agreement or
the Confidentiality and Non-Solicitation Agreement by Employee after receiving ten (10) business
days’ written notice and opportunity to cure.

          (d) Termination: In the event that Employee’s employment with MedAire is terminated
for any reason other than by MedAire without cause, including without limitation Employee’s
resignation, retirement, death or disability, or termination by MedAire for cause, this Agreement
shall terminate and Employee shall only be entitled to receive Employee’s then current base salary
and any unpaid benefits payable through the date Employee’s employment is terminated, but no other
compensation of any kind or amount. Notwithstanding the foregoing, Employee shall be entitled to
COBRA rights provided by statute commencing as of the date of termination.

          (e) Election Under Section 409A. For purposes of Section 409A Internal Revenue Code,
as amended (“Section 409A”), Employee hereby elects to receive, and MedAire hereby agrees to pay,
each amount payable under this Agreement at the times, and on the terms and conditions, set forth
herein.

          (f) Savings Clause. Notwithstanding the foregoing, if Section 409A would impose any
additional tax on payments within the first six months following placement of Employee on garden
leave, such payments shall be delayed to the minimum extent necessary to avoid such additional tax.
Any delayed payments shall be paid in a lump sum at the completion of such six-month period.
However, if it becomes necessary to delay payments for health benefits, MedAire shall take such
actions as are necessary to ensure that continued coverage is available to Employee and shall pay
or reimburse Employee for, as appropriate, all deferred payments after the deferral period.

     3. Compensation.

          (a) Salary. MedAire shall continue Employee’s base salary at the rate in effect at
the time of Employee’s execution of this Agreement. Compensation will be reviewed at least
annually, but MedAire may not reduce Employee’s base salary rate without first offering to place
Employee on nine (9) month garden leave in accordance with Section 2(b).

          (b) Benefits. MedAire shall provide Employee all benefits which MedAire in its sole
and absolute discretion may, from time to time, provide to its employees of Employees
classification.

Page 2 of 5

 

     4. Arbitration. Any controversy or claim between the parties to this Agreement,
arising out of the employment relationship, or claims of employment discrimination, shall be
resolved through arbitration administered by the American Arbitration Association under its
National Rules for the Resolution of Employment Disputes and judgment upon the award rendered by
the arbitrator(s) may be entered in any court having jurisdiction thereof; provided, however, that
in the event of any breach of threatened breach by Employee, MedAire will have the right to a
restraining order and injunction, both temporary and permanent, enjoining and restraining any such
breach or threatened breach. Such injunctive relief will be in addition to any other remedies
available to MedAire at law or in equity.

     5. Assignment. Employee understands and agrees that Employee obligations under this
Agreement are personal in nature and, as a result, Employee may not assign Employee’s rights or
delegate Employee’s duties under this Agreement. Employee further understands and agrees that
MedAire may assign all of its rights and obligations under this Agreement to any person or entity
without notice to, or the consent of, Employee.

     6. Miscellaneous.

          (a) Controlling Law, Venue: This Agreement shall be construed and enforced in
accordance with the laws of the State of Arizona. The parties agree that the proper venue for any
dispute arising out of or relating to this Agreement shall exist only in either of the two
following forums: (i) Arizona Superior Court, Maricopa County or (ii) United States District Court
for the District of Arizona, Phoenix Division.

          (b) Voluntary Agreement: Employee represents and warrants that Employee has been
afforded a reasonable opportunity to review this Agreement and discuss it with an attorney of
Employee’s choice. Employee represents and warrants that Employee fully understands the terms and
conditions specified in the Agreement, and that Employee knowingly and voluntarily enters into this
Agreement.

          (c) Integration: This Agreement and the Confidentiality and Non-Solicitation
Agreement constitute the entire understanding between the parties and supersede all other prior
written or oral agreements, representations or implied promises.

          (d) Modification or Waiver: The provisions of this Agreement may not be waived or
modified, unless in writing and signed by both parties.

          (e) Counterparts: This Agreement may be executed in counterparts, each of which
constitute an original document, and all of which constitute a single document.

          (f) Severability: If for any reason any provision of this Agreement is determined by
a court or arbitrator of competent jurisdiction to be invalid, illegal or unenforceable, its
invalidity shall not affect the validity and effect of the other provisions herein.

          (g) No Waiver For Delay: Any party’s delay in exercising any right or remedy under
this Agreement shall not: (i) impair any right or remedy which the party may have; or (ii) be
construed as a waiver of any such right or remedy under this Agreement, unless specifically waived
by the party in writing. Further, any party’s waiver of any breach or default

Page 3 of 5

 

under this Agreement shall not be a waiver of any other or subsequent breach or default
committed by the other party, or of the continuance of the same breach or default after any written
notice demanding strict performance.

          (h) Attorneys’ Fees: If any litigation occurs pursuant to this Agreement or
Employee’s employment, the non-prevailing party shall pay the prevailing party’s reasonable
attorneys’ fees and costs.

          (i) Currency References: All references to currency in this Agreement are made with
respect to U.S. Dollars.

[Signature Page to Follow]

Page 4 of 5

 

     IN WITNESS WHEREOF, each party has caused this Agreement to be executed by its duly authorized
representative or himself or herself, as applicable, and entered into on this nineteenth day of
July, 2006, to be deemed effective as of July 24, 2006.

	 	 	 	 	 	 	 	 	 
	MEDAIRE, INC.	 	EMPLOYEE	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ James A. Williams
	 	/s/
	 	Roger D. Sandeen	 	 
	 

	 	 
	 	 	 	 	 	 
	Its: Chief Executive Officer	 	Print Name: Roger D. Sandeen	 	 

Page 5 of 5Exhibit 10(s)

    Exhibit
      10(s)

    DEFERRED
      COMPENSATION PLAN

    FOR
      DIRECTORS OF

    DNB
      FINANCIAL CORPORATION

    

    (Effective
      October 1, 2006)

    

    1.  Purpose.

     

    The
      purpose of this DCP is to provide each Eligible Director with the opportunity
      to
      select the timing of receipt of his or her Compensation. This DCP has been
      adopted by the Board pursuant to the DNB Financial Corporation Incentive Equity
      and Deferred Compensation Plan to partially implement Article IX thereof, and
      shall be considered a part of such Plan and subject to the pertinent terms
      and
      provisions thereof. 

     

    2.  Eligibility.

     

    Each
      Eligible Director shall be eligible to participate in this DCP.

     

    3.  Definitions.

     

    The
      words
      and phrases set forth below shall have the meanings indicated, unless the
      context requires a different meaning. Each capitalized term or phrase used
      in
      this DCP but not defined in this Section 3 shall have the same meaning as the
      definition of such term or phrase set forth in the DNB Financial Corporation
      Incentive Equity and Deferred Compensation Plan.

     

    (a)  “Beneficiary”
      shall mean the person(s) designated to receive the balance of an Eligible
      Director’s Deferred Account upon the death of the Eligible Director. A
      Beneficiary may only be a natural person, a trust, or an entity that is
      tax-exempt under Section 501(c)(3) of the Code. 

     

    (b)  “Company”
      shall mean DNB Financial Corporation.

     

    (c)  “Compensation”
      shall mean the compensation payable by the Company, either in cash or pursuant
      to an Award of Shares, to an Eligible Director for his or her services as a
      member of the Board and committees thereof.

     

    (d)  “DCP”
      shall mean the Deferred Compensation Plan for Directors of DNB Financial
      Corporation, as set forth herein and as may be amended from time to
      time.

     

    (e)  “Effective
      Date” shall mean October 1, 2006, the effective date of this DCP.

     

    (f)  “Election”
      shall mean the written election by an Eligible Director, pursuant to Section
      4,
      below, to defer the receipt of all or a portion of his Compensation pursuant
      to
      this DCP.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (g)  “Eligible
      Director” shall mean any member of the Board, or of the board of directors of a
      direct or indirect subsidiary of the Company, who is entitled to Compensation
      for his services as a member of the Board or such other board.

     

    (h)  “Share”
      or “Shares” shall mean one or more shares of Stock, including fractional
      shares.

     

    4.  Election.

     

    (a)  Prior
      to
      the commencement of a calendar year, but not later than the preceding December
      15, an Eligible Director may make an Election, pursuant to which payment of
      a
      specified percentage or flat dollar amount of his Compensation earned and
      otherwise payable in cash during such year and thereafter, or a specified
      percentage or number of Shares subject to an Award granted in such year, shall
      be deferred until a future date established pursuant to Section 6(b), below.
      Notwithstanding the preceding sentence, however, in the case of any individual
      who will be an Eligible Director as of the Effective Date, or in the case of
      an
      individual who first becomes an Eligible Director after the Effective Date,
      the
      Eligible Director may make an Election at any time prior to the Effective Date
      or during the period ending on the 30th
      day
      following the Effective Date, or at any time prior to the date on which he
      or
      she becomes an Eligible Director or during the period ending on the
      30th
      day
      following the date he or she first becomes an Eligible Director, as the case
      may
      be, provided that in no event shall such Election apply with respect to any
      Compensation earned by the Eligible Director prior to the date of the Election.
      

     

    (b)  An
      Eligible Director’s Election must be in writing, and in such form as the
      Committee shall prescribe. No Election with respect to Compensation otherwise
      payable in cash shall be effective with respect to any calendar year unless
      the
      amount projected to be deferred for such year is at least five thousand dollars
      ($5,000). 

     

    (c)  An
      Eligible Director may modify or revoke his or her Election effective as of
      the
      commencement of any calendar year, provided such modification or revocation
      is
      in writing in such form as the Committee shall prescribe, and is delivered
      to
      the Company in advance of such year. 

     

    (d)  An
      Eligible Director’s Election with respect to Compensation otherwise payable in
      cash, or subsequent modification or revocation thereof, shall remain in effect
      through subsequent calendar years, unless and until modified or revoked, or
      a
      new Election is made, in accordance with the foregoing provisions of this
      Section 4. An Eligible Director’s Election with respect to Awards of Shares
      shall apply solely with respect to Awards granted in the calendar year to which
      the Election relates, and no Shares payable pursuant to another Award shall
      be
      deferred pursuant to this DCP or otherwise unless a new Election is made with
      respect to such Award pursuant to the foregoing provisions of this Section
      4.

     

    5.  Allocations
      to Deferred Compensation Account.

     

    (a)  That
      number of Shares having a Fair Market Value equal to one hundred and ten percent
      (110%) of the amount of Compensation otherwise payable in cash which an

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Eligible
      Director has deferred pursuant to an Election shall be allocated to the Eligible
      Director’s Deferred Compensation Account. The determination of the number of
      Shares to be allocated shall be based on the Fair Market Value of the Stock
      on
      the last day of the month in which such Compensation would have been paid to
      the
      Eligible Director but for his or her Election. 

     

    (b)  That
      number of Shares equal to the number of Shares subject to an Award which an
      Eligible Director has deferred pursuant to an Election shall be allocated to
      the
      Eligible Director’s Deferred Compensation Account as of the last day of the
      month in which such Shares would otherwise have been paid to the Eligible
      Director or become vested, whichever is later. 

     

    (c)  The
      amount of a cash dividend paid with respect to the Stock shall be deemed to
      be
      paid with respect to the Shares allocated to an Eligible Director’s Deferred
      Compensation Account and immediately reinvested in additional Shares in
      accordance with the same procedures and valuation provisions as are applicable
      under the Company’s Dividend Reinvestment Plan from time to time.

     

    (d)  All
      Shares allocated to an Eligible Director’s Deferred Compensation Account shall
      thereafter be fully vested and shall not be forfeitable for any reason.

     

    6.  Distributions
      from Deferred Compensation Account.

     

    (a)  All
      distributions from an Eligible Director’s Deferred Account shall be in Shares,
      except that the Fair Market Value of any fraction of a Share as of the date
      of
      distribution shall be paid in cash. All Shares distributed to an Eligible
      Director or Beneficiary shall be subject to a restriction whereby they may
      not
      be sold, hypothecated or otherwise transferred for a period of one (1) year
      from
      the date of distribution without the express, written consent of the Committee.
      Certificates representing distributed Shares shall bear a legend reflecting
      such
      restriction. 

     

    (b)  Distribution
      of an Eligible Director’s Deferred Compensation Account shall commence upon the
      earlier of the following:

     

    (i) the
      date
      as of which he or she separates from service with the Company, within the
      meaning of Section 409A of the Code; 

     

    (ii) the
      Eligible Director’s attainment of age 75; or

     

    (iii) the
      Eligible Director’s attainment of an attained age or a specified date designated
      by his or her Election, or as revised pursuant to Section 6(d), below.

     

    If
      the
      Eligible Director does not designate an age in his or her Election pursuant
      to
      clause (iii), distribution of the Eligible Director’s Deferred Compensation
      Account shall commence upon the occurrence of the earlier of the events
      specified in clause (i) and (ii). A single designation shall apply to the entire
      balance of the Eligible Director’s Deferred Compensation Account. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (c)  Upon
      the
      occurrence of the distribution event set forth in Section 6(b), above, the
      balance of the Eligible Director’s Deferred Compensation Account shall be
      distributed in one of the following optional forms of distribution, as he or
      she
      may designate in his or her Election:

     

    (i)  A
      single
      lump sum distribution on or about January 15 of the calendar year following
      the
      calendar year in which such distribution event occurs; or 

     

    (ii)  Annual
      installments payable for a number of whole years designated by the Eligible
      Director in his or her Election, which number shall not exceed ten (10),
      commencing on or about January 15 of the calendar year following the calendar
      year in which such distribution event occurs, and each January 15 thereafter
      during the installment period.

     

    In
      the
      absence of a designation by the Eligible Director pursuant to this Section
      6(c),
      the Eligible Director shall be deemed to have designated the distribution method
      set forth in clause (i). A single designation shall apply to the entire balance
      of the Eligible Director’s Deferred Compensation Account. 

     

    If
      distributions are to be made in installments, the amount of each installment
      shall be equal to the balance of the Deferred Compensation Account as of the
      close of the calendar year preceding the date of distribution of the
      installment, divided by the number of installment payments remaining (including
      that installment). 

     

    (d) An
      Eligible Director may elect to change the timing or method of distribution
      (or
      both) previously designated (or deemed designated) pursuant to Section 6(b)
      or
      (c), above, by submission of a new designation to the Company, subject to the
      following limitations and any further limitations prescribed by Section 409A
      of
      the Code:

     

    (i) no
      such
      new designation shall take effect until at least 12 months after the date on
      which it is made;

     

    (ii) the
      first
      payment as a result of such new designation shall be made no earlier than five
      (5) years after the date such payment would have been made absent such new
      Election; and 

     

    (iii) in
      the
      case of a payment scheduled to be made or payments scheduled to commence upon
      the attainment of a specified age, the new designation must be made at least
      12
      months prior to the attainment of such age. 

     

    (e) Notwithstanding
      an Eligible Director’s Election or any provision of this DCP to the contrary,
      upon an Eligible Director’s separation from service with the Company, within the
      meaning of Section 409A of the Code, the Eligible Director’s entire Deferred
      Compensation Account shall be distributed in a single lump sum on or about
      January 15 of the calendar year following his or her separation from service
      if
      the Fair Market Value of the Deferred Compensation Account as of the close
      of
      such calendar year is not in excess of ten thousand dollars ($10,000).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (f) Distribution
      of all or a portion of an Eligible Director’s Deferred Compensation Account
      shall be accelerated upon request of the Eligible Director if the Committee
      determines that the Eligible Director has experienced an unforeseeable
      emergency, within the meaning of Section 409A of the Code. The amount to be
      distributed shall not exceed the amount necessary to satisfy such unforeseeable
      emergency plus amounts necessary to pay taxes reasonably anticipated as a result
      of such distribution, after taking into account the extent to which such
      emergency may be relieved through reimbursement or compensation by insurance
      or
      otherwise or by liquidation of the Eligible Director’s assets (to the extent the
      liquidation of such assets would not itself cause severe financial hardship).
      In
      the event the requesting Eligible Director is a member of the Committee, the
      Eligible Director shall not participate in the decision by the Committee.

     

    (g) In
      the
      event of an Eligible Director’s death prior to the distribution in full of his
      or her Deferred Compensation Account, the Beneficiary shall receive the balance
      of the Eligible Director’s Deferred Compensation Account in a single lump sum as
      soon as practicable following the Eligible Director’s death. 

     

    (h) Any
      amount distributed to an Eligible Director or Beneficiary under this DCP shall
      be subject to all applicable tax withholdings mandated by law. To the extent
      necessary, the number of Shares otherwise distributable at any time shall be
      reduced by that number of Shares having a Fair Market Value equal to the amount
      of tax required to be withheld in connection with such distribution.

     

    7.  Designation
      of Beneficiary.

     

    (a)  Each
      Eligible Director shall file with the Company a written designation, in the
      form
      prescribed by the Company, of one or more persons as Beneficiary to receive
      the
      balance of the Eligible Director’s Deferred Compensation Account upon his or her
      death. The Eligible Director may, from time to time, revoke or change his or
      her
      Beneficiary designation by filing a new designation with the Company. The last
      such designation received by the Company shall be controlling; provided,
      however, that no designation, change or revocation thereof, shall be effective
      unless received by the Company prior to the Eligible Director’s
      death.

     

    (b)  If
      no
      such Beneficiary designation is in effect at the time of the Eligible Director’s
      death, or if no designated Beneficiary survives the Eligible Director, the
      payment of the amount, if any, payable under this DCP upon his or her death
      shall be made to the Eligible Director’s estate.

     

    8.  Claims
      Procedures.

     

    (a) An
      Eligible Director or, in the event of the Eligible Director’s death, his or her
      Beneficiary, may file a written claim for payment hereunder with the Committee.
      In the event of a denial of any payment due to or requested by the Eligible
      Employee or Beneficiary (the “claimant”), the Committee will give the claimant
      written notification containing specific reasons for the denial. The written
      notification will contain specific reference to the pertinent provisions of
      this
      DCP on which the denial of the claim is based. In addition, it will contain
      a
      description of any other material or information necessary for the claimant
      to
      perfect a claim, and 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    an
      explanation of why such material or information is necessary. The notification
      will provide further appropriate information as to the steps to be taken if
      the
      claimant wishes to submit the claim for review and the time limits applicable
      thereto. This written notification will be given to a claimant within ninety
      (90) days after receipt of the claim by the Committee unless special
      circumstances require an extension of time for processing the claim, in which
      case the Committee shall provide written notice of the extension to the claimant
      and the reasons therefore, and the date by which the Company expects to make
      its
      determination with respect to the claim. In no event shall such extension exceed
      90 days.

     

    (b) In
      the
      event of a denial of a claim for benefits, the claimant or a duly authorized
      representative will be permitted to submit issues and comments in writing to
      the
      Committee and to submit documents, records and other information relating to
      the
      claim for benefits. The claimant or a duly authorized representative shall
      also
      be provided, upon request and free of charge, reasonable access to, and copies
      of, all documents, records, and other information relevant to the claimant’s
      claim for benefits. In addition, the claimant or a duly authorized
      representative may make a written request for a full and fair review of the
      claim and its denial by the Committee that takes into account all comments,
      documents, records and other information submitted by the claimant, without
      regard to whether such information was submitted or considered in the initial
      benefits determination; provided, however, that such written request is received
      by the Commitee (or its delegate) within sixty (60) days after receipt by the
      claimant of written notification of the denial. The sixty (60) day requirement
      may be waived by the Committee in appropriate cases.

     

    (c) A
      decision on review of a claim for benefits will be rendered by the Commitee
      within sixty (60) days after the receipt of the request. Under special
      circumstances, an extension (up to an additional 60 days) can be granted for
      processing the decision. Notice of this extension must be provided in writing
      to
      the claimant prior to the expiration of the initial sixty-day period. In no
      event will the decision be rendered more than one hundred twenty (120) days
      after the initial request for review. Any decision by the Commitee will be
      furnished to the claimant in writing and will set forth the specific reasons
      for
      the decision and the specific provisions on which the decision is based. The
      claimant or a duly authorized representative shall also be provided, upon
      request and free of charge, reasonable access to, and copies of, all documents,
      records, and other information relevant to the claimant’s claim for benefits.

     

    9.  Amendment
      or Termination.

     

    The
      Board
      reserves the right at any time to amend this DCP in whole or in part,
      retroactively or prospectively, for any reason and without the consent of any
      Eligible Director or Beneficiary, provided that no amendment may adversely
      affect the rights of an Eligible Director or a Beneficiary with respect to
      amounts credited to the Eligible Director’s Deferred Compensation Account prior
      to such amendment or alter the timing of distribution of any Eligible Director’s
      Deferred Compensation Account. The Board reserves the right at any time to
      terminate this DCP. Upon termination of this DCP, (a) all Elections with respect
      to the deferral of future Compensation shall terminate as of the date specified
      by the Board, but not before the earliest time permitted under Section 409A
      of
      the Code; and (b) the Deferred Compensation Account of each Eligible Director
      shall be distributed at such time or times as it 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    would
      have been distributed in the absence of termination, unless the Board, in its
      discretion, elects to distribute the Deferred Compensation Accounts of all
      Eligible Directors in some other manner but in no event prior to the earliest
      time permitted under Section 409A of the Code.   

     

    10.  Miscellaneous.

     

    (a)  Nothing
      contained in this DCP shall give the Eligible Director the right to be retained
      in the service of the Company. 

     

    (b)  If
      the
      Company shall find that any person to whom any amount is payable under this
      DCP
      is unable to care for his affairs because of illness or accident, or is a minor,
      the Company may direct that any amount to which such person is entitled be
      paid
      to his or her spouse, a child, a relative, an institution maintaining or having
      custody of such person, or any other person deemed by the Company to be a proper
      recipient on behalf of such person otherwise entitled to payment. Any such
      payment shall be a complete discharge of the liability of the DCP and the
      Company therefor.

     

    (c)  Except
      insofar as may otherwise be required by law, no amount payable at any time
      under
      this DCP shall be subject in any manner to alienation by anticipation, sale,
      transfer, assignment, bankruptcy, pledge, attachment, charge, encumbrance or
      garnishment by creditors of the Eligible Director or his or her Beneficiary,
      nor
      be subject in any manner to the debts or liabilities of any person, and any
      attempt to so alienate or subject any such amount, whether presently or
      thereafter payable, shall be void.

     

    (d)  It
      is the
      intention of the Company that this DCP shall be unfunded for Federal income
      tax
      purposes. Accordingly, this DCP constitutes a mere promise by the Company to
      make payments hereunder in the future, and each Eligible Director or, if
      applicable, his or her Beneficiary, shall have the status of a general unsecured
      creditor of the Company with respect to this DCP. Except as provided by the
      terms of any trust established pursuant to Section 9.4 of the DNB Financial
      Corporation Incentive Equity and Deferred Compensation Plan, neither an Eligible
      Director nor his or her Beneficiary shall have any right, title, or interest
      in
      or to any assets which the Company may hold to aid it in meeting its obligations
      hereunder. Such assets, whether held in trust or otherwise, shall be
      unrestricted corporate assets.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]