DIRECTOR’S COMPENSATION AGREEMENT
EXHIBIT 10.1
1982 DIRECTOR’S DEFERRED COMPENSATION AGREEMENT FOR A. XXXXXX XXXX
This Agreement is entered into this first day of January 1982, between THE JUNIATA VALLEY BANK,
X.X. Xxx 00, Xxxxxxxxxxx, Xxxxxxxxxxxx 00000 (herein referred to as the “Bank”) and A. XXXXXX XXXX,
XX. #0, Xxxx Xxxxx, Xxxxxxxxxxxx 00000 (herein referred to as the “Director”).
WITNESSETH
WHEREAS, the Bank recognizes that the competent and faithful efforts of Director on behalf of the
Bank have contributed significantly to the success and growth of the Bank; and
WHEREAS, the Bank values the efforts, abilities and accomplishments of the Director and recognizes
that his services are vital to its continued growth and profits in the future; and
WHEREAS, the Bank desires to compensate the Director and retain his services for five years, if
elected, to serve on the Board of Directors. Such compensation is set forth below; and
WHEREAS, the Director, in consideration of the foregoing, agrees to continue to serve as a
Director, if elected,
NOW, THEREFORE, it is mutually agreed as follows:
1. Compensation. The Bank agrees to pay Director the total sum of $229,680 payable in monthly
installments of $1,914 for 120 consecutive months, commencing on the first day of the month
following Director’s 65th birthday. Payments to the Director will terminate when the 120 payments
have been made or at the time of the Director’s death, whichever occurs first.
2. Death of Director Before Age 65. In the event Director should die before reaching age 65, the
Bank agrees to pay to Director’s beneficiary designated in writing to the Bank, the sum of $1,914
per month for 120 consecutive months. Payments will begin on the first day of the month following
Director’s death.
3. Death of Director After Age 65. If the Director dies after age 65 prior to receiving the
full 120 monthly installments, the remaining monthly installments will be paid to the Director’s
designated beneficiary (ies). The beneficiary (ies) shall receive all remaining monthly
installments which the Director would have received until the total sum of $229,680 set forth in
paragraph “1” is paid. If the Director fails to designate a beneficiary in writing to the Bank, the
balance of monthly installments remaining at the time of his death shall be paid to the legal
representative of the estate of the Director.
4. Termination of Service as A Director. If the Director, for any reason other than death,
fails to serve five consecutive years as a Director, he will receive monthly compensation beginning
at age 65 on the basis that the number of full months served bears to the required number of 60
months times the compensation stated in paragraph “1”. For example, if the Director serves only 36
months, he will be entitled to 36/60 or 60% of the compensation stated in paragraph “1”.
5. Suicide. No payments will be made to the Director’s beneficiary (ies) or to his estate in the
event of death by suicide during the first three years of this agreement.
6. Status of Agreement. This agreement does not constitute a contract of employment between the
parties, nor shall any provision of this agreement restrict the right of the Bank’s Shareholders to
replace the Director or the right of the Director to terminate his service.
7. Binding Effect. This agreement shall be binding upon the parties hereto and upon the
successors and assigns of the Bank, and upon the heirs and legal representatives of the Director.
8. Forfeiture of Compensation by Competition. The Director agrees that all rights to
compensation following age 65 shall be forfeited by him if he engages in competition with the Bank,
without the prior written consent of the Bank, within a radius of 5 miles
of the main office of the Bank for a period of ten years, coinciding with the number of years that
the Director shall receive such compensation.
9. Assignment of Rights. None of the rights to compensation under this Agreement are assignable
by the Director or any beneficiary or designee of the Director and any attempt to anticipate, sell,
transfer, assign, pledge, encumber or change Director’s right to receive compensation, shall be
void.
10. Status of Director’s Rights. The rights granted to the Director or any designee or
beneficiary under this Agreement shall be solely those of an unsecured creditor of the Bank.
11. Amendments. This Agreement may be amended only by a written Agreement signed by the parties.
12. If the Bank shall acquire an insurance policy or any other asset in connection with the
liabilities assumed by it hereunder, it is expressly understood and agreed that neither Director
nor any beneficiary of Director shall have any right with respect to, or claim against, such
policy or other asset except as expressly provided by the terms of such policy or in the title to
such other asset. Such policy or asset shall not be deemed to be held under any trust for the
benefit of Director or his beneficiaries or to be held in any way as collateral security for the
fulfilling of the obligations of the Bank under this Agreement except as may be expressly provided
by the terms of such policy or other asset. It shall be, and remain, a general, unpledged,
unrestricted asset of the Bank.
13. This agreement shall be construed under and governed by the laws of the State of
Pennsylvania.
14. Interpretation. Wherever appropriate in this Agreement, words used in the singular shall
include the plural and the masculine shall include the feminine gender.
