AMENDMENT TO SURVIVOR INCOME AGREEMENT AND SPLIT DOLLAR ADDENDUM TO SURVIVOR INCOME AGREEMENT
Exhibit
10.2
AMENDMENT
TO SURVIVOR INCOME AGREEMENT AND SPLIT DOLLAR ADDENDUM TO SURVIVOR INCOME
AGREEMENT
This
Amendment to Survivor Income Agreement and Split Dollar Addendum to Survivor
Income Agreement is entered into this 30th day of April, 2007 by COMMUNITYBANKS,
successor in interest to Community Banks, N.A. (“Company”), and XXXXXX X. XXXXXX
(“Executive”).
BACKGROUND:
A. On
June 1, 1994, Company and Executive entered into the Community Banks, N.A.
Survivor Income Agreement (“Agreement”), which incorporated and was supplemented
by a Split Dollar Addendum to Community Banks, N.A. Survivor Income Agreement
(“Addendum”).
B. The
parties wish to make certain amendments to the Agreement and Addendum, in order
to make those documents consistent with substantially similar agreements between
Company and other executive officers of Company.
NOW
THEREFORE, in exchange for valuable consideration and intending to be legally
bound, the parties hereby agree as follows:
1. Modification
of Article 1 of Agreement.
Article 1 of the Agreement is hereby modified to include the following
additional Section 1.4:
1.4
Change
of Control.
Notwithstanding any other provision of this Agreement, in the event of a Change
of Control (as defined below), the Company or its successor shall maintain
in
full force and effect this Agreement and the related life insurance policy
that
is in existence on the date the Change of Control occurs and, in no event shall
the Company or its successor terminate or otherwise abrogate the Executive’s
interest in the life insurance policy; provided, however, that at all times
the
life insurance policy shall be subject to the claims of the Company’s creditors.
Change
of Control shall mean:
(a) A
reorganization, merger, consolidation or sale of substantially all of the assets
of Community Banks, Inc., the Company’s sole shareholder (“Community”), or a
similar transaction in which Community is not the resulting entity; or
(b) Individuals
who constitute the Incumbent Board (as herein defined) of Community cease for
any reason to constitute a majority of the Board of Directors. For these
purposes, “Incumbent Board” shall mean the members of the Board of Directors of
Community on the effective date hereof. Any person becoming a member of the
Board of Directors subsequent to such effective date, whose election was
approved by a vote of at least three-quarters (3/4) of the members of the Board
of Directors comprising the Incumbent Board, or whose nomination for election
by
members or shareholders was approved by the same
1
nominating
committee serving under the Incumbent Board, shall be considered as though
he or
she were a member of the Incumbent Board.
2. Modification
of Article 5 of the Agreement.
Article 5 of the Agreement is hereby modified to provide, in its entirety,
as
follows:
If
the Executive voluntarily terminates employment after attaining the age of
sixty-five (65) and completes ten (10) years of service, or terminates
employment subsequent to a change of control (as defined herein), unless the
Executive elects otherwise by written notice to the Company, the Split Dollar
Insurance Agreement attached as the Addendum to this Agreement shall
automatically take effect as of the Executive’s termination of employment. The
Company shall take all actions necessary to implement the Split Dollar Insurance
Agreement.
3. Modification
of Article 6 of the Agreement.
Article 6 of the Agreement is hereby modified to provide, in its entirety,
as
follows:
Except
as provided in Section 1.4 of this Agreement, the Company may amend or terminate
this Agreement at any time prior to the Executive’s death by written notice to
the Executive.
4. Other.
Except as specifically modified herein, the terms and conditions of the
Agreement and Addendum remain in full force and effect. This Amendment is hereby
appended to and made a part of the Agreement and Addendum.
IN
WITNESS WHEREOF, the Executive and a duly authorized representative of the
Company have executed this Amendment as of the date first written
above.
CommunityBanks
By:
/s/
Xxxxx X. Xxxxxxxxxxxx
Xxxxx
X. Xxxxxxxxxxxx, President and CEO
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WITNESS:
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EXECUTIVE:
/s/
Xxxxxx X. Xxxxxx
Xxxxxx
X. Xxxxxx
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WITNESS:
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