THE PEOPLES NATIONAL BANK
SALARY CONTINUATION AGREEMENT
THIS SALARY CONTINUATION AGREEMENT (the "Agreement") is made this 7th day
of July, 1998 by and between The Peoples National Bank, a national banking
association having a principal office in Easley, South Carolina (the "Company"),
and Xxxxxx X. Xxx (the "Executive").
INTRODUCTION
To encourage the Executive to remain an employee of the Company, the
Company is willing to provide salary continuation benefits to the Executive.
Now, therefore, in consideration of the mutual covenants and agreements
herein, the Executive and the Company agree as follows:
Article 1
Definitions
1.1 Definitions. Whenever used in this Agreement, the following words and
phrases shall have the meanings specified:
1.1.1 "Anniversary Date" means September 30th of each Plan Year.
1.1.2 "Board" or "Board of Directors" means the Board of Directors of
Company.
1.1.3 "Change of Control" means (i) the acquisition, directly or
indirectly, by any person within any twelve (12) month period
of securities of the Company representing an aggregate of
twenty (20%) percent or more of the combined voting power of
the Company's then outstanding securities; or (ii) during any
period of two (2) consecutive years, individuals who at the
beginning of such period constitute the Board, cease for any
reason to constitute at least a majority thereof, unless the
election of each new director was approved in advance by a vote
of at least a majority of the directors then still in office
who were directors at the beginning of the period; or (iii)
consummation of (A) a merger, consolidation or other business
combination of the Company with any other person or affiliate
thereof, other than a merger, consolidation or business
combination which would result in the outstanding common stock
of the Company immediately prior thereto continuing to
represent (either by remaining outstanding or by being
converted into common stock of the surviving entity or a parent
or affiliate thereof) at least sixty-seven (67%) percent of the
outstanding common stock (on a fully diluted basis) of the
Company or such surviving entity or parent or affiliate thereof
outstanding immediately after such merger, consolidation or
business combination, or (B) a plan of complete liquidation of
the Company or an agreement for the sale or disposition by the
Company of all or substantially all of the Company's assets; or
(iv) the occurrence of any other event or circumstance which is
not covered by (i) through (iii) above which the Board
determines affects control of the Company and, in order to
implement the purposes of this Agreement as set forth above,
adopts a resolution that such event or circumstances
constitutes a Change in Control for the purposes of this
Agreement.
1.1.4 "Code" means the Internal Revenue Code of 1986, as amended.
References to a Code section shall be deemed to be that section
as it now exists and to any successor provisions.
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1.1.5 "Consumer Price Index" shall mean an annual cost of living
increase (but not decrease) of the benefit provided Executive
in this Agreement. The cost of living increase shall be
determined based upon the annual increase in the Consumer Price
Index for all Urban Consumer Index for all Urban Consumers -
South, All Items (base year 1982-84=100) as published by the
U.S. Department of Labor (the "Index"). If publication of the
Consumer Price Index is discontinued, the parties shall accept
comparable statistics on the cost of living for Greenville,
South Carolina as such statistics are computed and published by
a federal agency or by a recognized financial periodical
selected by the parties.
1.1.6 "Disability" means sickness, accident or injury which, in the
judgment of a physician appointed and paid for by the Company,
prevents the Executive from performing all of the Executive's
customary duties for the Company. As a condition to any
benefits, the Company may require the Executive to submit to
such physical or mental evaluations and tests as the Board of
Directors deems appropriate.
1.1.7 "Early Termination" means the Termination of Employment before
Normal Retirement Age for reasons other than death, Disability
or Termination for Cause.
1.1.8 "Early Termination Date" means the month, day and year in which
Early Termination occurs.
1.1.9 "Effective Date" means the 1st day of October, 1997.
1.1.10 "Month of Service" means each completed full month of a Year of
Service.
1.1.11 "Normal Retirement Age" means the date the Executive attains
age sixty-six (66).
1.1.12 "Normal Retirement Date" means the later of the Normal
Retirement Age or Termination of Employment.
1.1.13 "Plan Year" means the twelve (12) consecutive month period
beginning on September 26th and ending on September 25th of the
following calendar year. The first Plan Year shall commence on
the Effective Date of the Agreement.
1.1.14 "Retirement Account" means the hypothetical account established
on the Company's books for the Executive. The Retirement
Account as of any date shall be determined by subtracting the
value of the Simulated Cost of Funds Investment from the value
of the Simulated Investment and dividing the difference by the
"adjustment rate." For purposes of this paragraph, the
adjustment rate shall mean the figure equal to one minus the
Company's highest marginal federal and state income tax rate
for the previous calendar year.
1.1.15 "Simulated Cost of Funds Investment" means the value of an
investment comprised of principal and accumulated after-tax
interest earnings. The initial investment of principal is
assumed to be $690,000 on September 26, 1997. In determining
the value of the Simulated Cost of Funds Investment, the
following assumptions are to be used:
(1) the interest shall accrue monthly;
(2) the interest shall compound annually on the Anniversary
Date; and
(3) the after-tax interest rate shall equal the Company's
after-tax average cost of funds from the Company's
third quarter Call Report ending within the Plan Year
as filed with the Federal Reserve.
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1.1.16 "simulated Investment" means the following life insurance
contract:
Insurance Company: Transamerica Life Insurance Co.
Policy Type: Flexible Premium Universal Life
Insured's Age and Sex: 53, Male
Riders: None
Ratings: None
Option: A
Single Premium: $690,000
Net Life Insurance: $906,000
Total Death Benefits: $1,596,000
Assumed Purchase Date: September 26, 1997
The investment specified above is for use in measuring the
Disability Benefit in Section 2.3.3 and the Death Benefit
stated in Section 3.1.3 of this Agreement. The Company can
change the Simulated Investment only with the Executive's prior
written agreement. The investment is assumed to continue to be
in force after the Executive has died.
1.1.17 "Simulated Investment Rate" means the after-tax rate of return
on the Simulated Investment. The Simulated Investment Rate
shall not include receipt of the policy's death benefits.
1.1.18 "Termination of Employment" means the Executive's ceasing to be
employed by the Company for any reason whatsoever, voluntary or
involuntary.
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Article 2
Lifetime Benefits
2.1 Normal Retirement Benefit. Upon Termination of Employment on or after
the Normal Retirement Age for reasons other than Executive's death, the Company
shall pay to the Executive the benefit described in this Section 2.1 in lieu of
any other benefit under this Agreement.
2.1.1 Amount of Benefit. The annual benefit under this Section 2.1 is
$35,130 increased by four (4%) percent each Plan Year between the
Effective Date of this Agreement and the Executive's Normal
Retirement Date.
2.1.2 Payment of Benefit. The Company shall pay the annual benefit to
the Executive in twelve (12) equal consecutive monthly
installments payable on the first day of each month commencing
with the month following the Executive's Normal Retirement Date
and continuing for the greater of the life of the Executive or
two hundred twenty seven (227) additional months.
2.1.3 Benefit Increases. Commencing on the first anniversary of the
first benefit payment, and continuing on each subsequent
anniversary, the annual benefit shall increase by the Consumer
Price Index.
2.2 Early Termination Benefit. Upon Early Termination, the Company shall pay
to the Executive the benefit described in this Section 2.2 in lieu of any
other benefit under this Agreement.
2.2.1 Amount of Benefit. The annual benefit under this Section 2.2 is
the Early Termination Annual Benefit amount set forth in
Schedule A for the Plan Year ending immediately prior to the
Early Termination Date plus the amount determined by the
following formula:
2.2.1.1 The amount set forth in the Early Termination Annual
Benefit column of Schedule A for the Plan Year in
which the Executive's Termination of Employment
occurred; less
2.2.1.2 The amount set forth in the Early Termination Annual
Benefit column of Schedule A for the Plan Year
completed immediately prior to the date of the
Executive's Termination of Employment (zero if
termination takes place in Plan Year 1); multiplied
times
2.2.1.3 A fraction where the numerator is the number of
Months of Service completed in the Plan Year in
which the Executive's Termination of Employment
occurred and the denominator is twelve (12).
2.2.2 Payment of Benefit. The Company shall pay the annual benefit to
the Executive in twelve (12) equal consecutive monthly
installments payable on the first day of each month commencing
with the month following the Executive's Normal Retirement Date
and continuing for the greater of the life of the Executive or
two hundred twenty-seven (227) additional months. If the
Executive dies after Early Termination but prior to the
commencement of benefit payments, the Company shall pay the
benefits otherwise called for in Section 2.2 to the Executive's
beneficiary commencing with the month following the Executive's
death and continuing for two hundred twenty-seven (227)
additional months.
2.2.3 Benefit Increases Before Payment. The annual benefit determined
under Section 2.2.1 shall be increased annually by the Consumer
Price Index for each full Plan Year subsequent to the Plan Year
in which the Executive's Termination of Employment occurs until
the commencement of payments under Section 2.2.2.
Notwithstanding the provisions of this Section 2.2.3, the
annual benefit at the commencement of payments under Section
2.2.2 shall not exceed the Normal Retirement Benefit amounts in
Section 2.1 and shall be reduced so as not to exceed the Normal
Retirement Benefit amounts in Section 2.1. Commencing on the
first anniversary of the first benefit payment, and continuing
on each subsequent anniversary, the annual benefit shall
increase by the Consumer Price Index.
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2.3 Disability Benefit. If the Executive terminates employment due to
Disability prior to the Normal Retirement Age, the Company shall pay to
the Executive the benefit described in this Section 2.3 in lieu of any
other benefit under this Agreement.
2.3.1 Amount of Disability Benefit. The Disability Benefit under this
Section 2.3 is the Disability Annual Benefit amount set forth in
Schedule A for the Plan Year ending immediately prior to the date
in which the Termination of Employment occurs plus the additional
amount set forth in Section 2.3.3. Commencing on the first
anniversary of the first benefit payment, and continuing on each
subsequent anniversary, the annual benefit shall increase by the
Consumer Price Index.
2.3.2 Payment of Benefit. The Company shall pay the annual benefit to
the Executive in twelve (12) equal monthly installments payable
on the first day of each month commencing with the month
following the Executive's Normal Retirement Date and continuing
for the greater of the life of the Executive or two hundred
twenty seven (227) additional months.
2.3.3 Payment of Additional Disability Amount. In addition to the
Disability payment described in Section 2.3.2, the Executive
shall receive an annual benefit beginning at Termination of
Employment under this Section 2.3.3 provided that the Executive
incurs Disability prior to attaining his Normal Retirement Age.
If the Executive incurs Disability prior to attaining his Normal
Retirement Age (i.e. no benefits under this Section 2.3.3 are
paid if the Executive becomes disabled on or after his Normal
Retirement Age), the Company shall pay the Executive an annual
benefit which is calculated at the end of each Plan Year equal to
the increase in the Retirement Account for the Plan Year. The
benefit payments will be paid annually within sixty (60) days
after the end of the Plan Year for which the payment is
calculated. Benefits under this Section 2.3.3 shall commence at
the end of the Plan Year in which the Termination of Employment
for Disability occurs and continue until the end of payments
under Section 2.1.2. Total annual Disability benefit amounts
subsequent to the commencement of benefit payments under Section
2.3.2 are not to exceed Normal Retirement Benefit amounts in
Section 2.1 and shall be reduced so as not to exceed the Normal
Retirement Benefit amounts in Section 2.1 by reducing the annual
benefit provided for in this Section 2.3.3.
Article 3
Death Benefits
3.1 Death During Active Service. If the Executive dies while employed by the
Company, the Company shall pay to the Executive's beneficiary the benefit
described in this Section 3.1 in lieu of any other benefit under this
Agreement.
3.1.1 Amount of Benefit. The Death Benefit under Section 3.1 shall be
the Vested Accrual Balance set forth in Schedule A for the Plan
Year ending immediately prior to the date of Executive's death
plus the additional amount set forth in Section 3.1.3.
3.1.2 Payment of Vested Accrual Balance Benefit. The Company shall pay
the Vested Accrual Balance death benefit to the Executive's
beneficiary in the form of a lump-sum payable within sixty (60)
days after the date of the Executive's death.
3.1.3 Payment of Additional Amount. In addition to the lump-sum payment
described in Section 3.1.2, the Executive's beneficiary shall
receive an annual benefit under this Section 3.1.3 provided that
the Executive dies while employed with Company prior to attaining
his Normal Retirement Age. If the Executive dies prior to
attaining his Normal Retirement Age (i.e. no benefits under this
Section 3.1.3 are paid if the Executive dies on or after his
Normal Retirement Age), the Company shall pay the Executive's
beneficiary an annual benefit which is calculated at the end of
each Plan Year equal to the increase in the Retirement Account
for the Plan Year. The benefit payments will be paid annually
within sixty (60) days after the end of the Plan Year for which
the payment is calculated. Benefits under this Section 3.1.3
shall commence at the end of the Plan Year in which the
Executive's death occurs and continue for the number of years
specified on Schedule A in the column entitled "Death Benefit
Payout Period."
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3.2 Death During Benefit Period. If the Executive dies after benefit payments
have commenced under this Agreement but before receiving all such
payments, the Company shall pay the remaining benefits to the Executive's
beneficiary at the same time and in the same amounts the benefit would
have been paid to the Executive if the Executive survived.
Article 4
Beneficiaries
4.1 Beneficiary Designations. The Executive shall designate a primary and
contingent beneficiary by filing a written designation with the Company.
The Executive may revoke or modify the designation at any time by filing
a new designation. However, designations will only be effective if signed
by the Executive and accepted by the Company during the Executive's
lifetime. A beneficiary's designation shall be deemed automatically
revoked if the beneficiary predeceases the Executive, or if the Executive
names a spouse as beneficiary and the marriage is subsequently dissolved.
If the Executive dies without a valid beneficiary designation, all
payments shall be made to the Executive's estate. If Executive dies and
subsequently the beneficiary receiving benefit payments dies, then any
remaining payments shall be paid pursuant to a written beneficiary
designation filed with Company made by such beneficiary, or if none to
such beneficiary's estate.
4.2 Facility of Payment. If a benefit is payable to a minor, to a person
declared incompetent, or to a person incapable of handling the
disposition of his or her property, the Company may pay such benefit to
the guardian, conservator, legal representative or person having the care
or custody of such minor, incompetent person or incapable person. The
Company may require proof of incompetence, minority or guardianship as it
may deem appropriate prior to distribution of the benefit. Such
distribution shall completely discharge the Company from all liability
with respect to such benefit.
Article 5
General Limitations
Notwithstanding any provision of this Agreement to the contrary, Executive shall
irrevocably forfeit and the Company shall not pay any benefit under this
Agreement for the following reasons:
5.1 Excess Parachute Payment. In the event that the benefit payable to
Executive pursuant to this Agreement should cause a "parachute payment,"
as defined in Code Section 280G(b)(2), then such benefit shall be reduced
One Dollar ($1.00) at a time until the payment will not constitute a
parachute payment. In the event the benefit Executive receives under this
Agreement should be incorrectly calculated so that such amount
constitutes a parachute payment, then Executive will promptly refund to
Company the excess amount. Excess amount shall mean the amount in excess
of Executive's base amount, as defined in Code Section 280G(b)(3),
multiplied by 2.999.
5.2 Termination for Cause. No benefits shall be payable if the Company
terminates the Executive's employment for:
5.2.1 Gross negligence or gross neglect of duties prior to a Change of
Control;
5.2.2 Commission of a felony; or
5.2.3 Fraud, disloyalty, dishonesty or willful violation of any law or
material Company policy in connection with the Executive's
employment.
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5.3 Suicide. No benefits shall be payable if the Executive commits suicide
within two (2) years after the Effective Date of this Agreement, or if
the Executive has made any material misstatement of fact on any
application for life insurance purchased by the Company.
5.4 No Duplication of Benefits. Each of the benefits described in Article 2
and 3 are intended to be separate benefits and mutually exclusive of the
other so that once benefit payments commence under one Section Executive
(or his beneficiary, as the case may be) shall not thereafter receive
payments or become entitled to benefits under another Section.
5.5 Non-Competition Covenant. While Executive is employed by the Company and
during the period of time the Executive is receiving any benefit payments
pursuant to this Agreement, the Executive will not, for himself or on
behalf of, or in conjunction with any other person or persons, company,
partnership, limited liability company, proprietorship, trust, company,
bank, financial services institution, or other entity, directly or
indirectly, own, manage, operate, control, be employed by, consult with,
participate in, or be connected in any manner with the ownership,
employment, management, operation, consulting or control of any financial
services institution that competes with Company. In the event of any
actual breach by the Executive of the provisions of this non-competition
covenant, all payments under this Agreement payable to the Executive
shall irrevocably terminate and no further amount shall be due or payable
to the Executive pursuant to this Agreement. Executive specifically
acknowledges that the restrictions as set forth above are reasonable and
bear a valid connection with the business operations of Company, and
specifically admits that Executive is capable of obtaining suitable
employment not in competition with Company. If any one of the
restrictions contained herein shall for any reason be held to be
excessively broad as to duration or geographical area, it shall be deemed
amended by limiting and reducing it so as to be valid and enforceable to
the extent compatible with applicable state law as it shall then appear.
Executive acknowledges that the Company would not have entered into this
Agreement without the non-competition covenant contained herein. This
covenant not to compete shall not prohibit the Executive from owning
stock in any publicly traded company provided Executive's stock ownership
is five (5%) percent or less of the issued and outstanding stock of such
publicly traded company and the Executive has no corporate responsibility
other than the Executive's rights as a stockholder.
Article 6
Claims and Review Procedures
6.1 Claims Procedure. The Company shall notify any person or entity that
makes a claim pursuant to this Agreement (the "Claimant"), in writing,
within ninety (90) days of the claimant's written application for
benefits, of eligibility or non- eligibility for benefits under the
Agreement. If the Company determines that the claimant is not eligible
for benefits or full benefits, the notice shall set forth (1) the
specific reasons for such denial, (2) a specific reference to the
provisions of the Agreement on which the denial is based, (3) a
description of any additional information or material necessary for the
claimant to perfect claimant's claim, and a description of why it is
needed, and (4) an explanation of the Agreement's claims review procedure
and other appropriate information as to the steps to be taken if the
claimant wishes to have the claim reviewed. If the Company determines
that there are special circumstances requiring additional time to make a
decision, the Company shall notify the claimant of the special
circumstances and the date by which a decision is expected to be made,
and may extend the time for up to an additional ninety (90) day period.
6.2 Review Procedure. If the claimant is determined by the Company not to be
eligible for benefits, or if the claimant believes that claimant is
entitled to greater or different benefits, the claimant shall have the
opportunity to have such claim reviewed by the Company by filing a
petition for review with the Company within sixty (60) days after receipt
of the notice issued by the Company. Said petition shall state the
specific reasons which the claimant believes entitle claimant to benefits
or to greater or different benefits. Within sixty (60) days after receipt
by the Company of the petition, the Company shall afford the claimant
(and counsel, if any) an opportunity to present claimant's position to
the Company orally or in writing, and the claimant (or counsel) shall
have the right to review the pertinent documents. The Company shall
notify the claimant of its decision in writing within the sixty (60) day
period, stating specifically the basis of its decision, written in a
manner calculated to be understood by the claimant and the specific
provisions of the Agreement on which the decision is based. If, because
of the need for a hearing, the sixty (60) day period is not sufficient,
the decision may be deferred for up to another sixty (60) day period at
the election of the Company, but notice of this deferral shall be given
to the claimant.
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Article 7
Amendments and Termination
7.1 The Company reserves the right to amend or terminate this Agreement at
any time. In the event of termination, the Executive shall be 100% vested
in the Normal Retirement Benefit accrued under Schedule A as of the
effective year of the termination. The Company shall pay the benefit to
the Executive, at the Company's discretion, in either lump sum payment
within sixty (60) days of Executive's Termination of Employment, or in
monthly payments, beginning with the month following the Executive's
Termination of Employment and continuing for one hundred seventy-nine
(179) months. In the event of amendment, the vested benefit amount
accrued under Section 2.2 as of the effective date of the amendment shall
not be reduced by the amendment.
Article 8
Miscellaneous
8.1 Binding Effect. This Agreement shall bind the Executive and the Company,
and their heirs, beneficiaries, legal representatives, executors,
administrators, successors and permitted assigns.
8.2 No Guaranty of Employment. This Agreement is not an employment policy or
contract. It does not give the Executive the right to remain an employee
of the Company, nor does it interfere with the Company's right to
discharge the Executive. It also does not require the Executive to remain
an employee nor interfere with the Executive's right to terminate
employment at any time. Nothing in this Agreement shall be construed as
an employment agreement, either express or implied.
8.3 Non-Transferability. No amounts payable under this Agreement shall be
transferable by the Executive. Further, Executive may not sell, assign,
alienate, pledge or otherwise encumber any benefits under this Agreement.
8.4 Tax Withholding. The Company shall withhold any taxes that are required
to be withheld from the benefits provided under this Agreement.
8.5 Applicable Law. The Agreement and all rights hereunder shall be governed
by the laws of the State of South Carolina, except to the extent
preempted by the laws of the United States of America.
8.6 Unfunded Arrangement. The Executive and any beneficiary are general
unsecured creditors of the Company for the payment of benefits under this
Agreement. This Agreement shall always be an unfunded Agreement. The
benefits represent the mere promise by the Company to pay such benefits.
The rights to benefits are not subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance, attachment,
or garnishment by creditors. Insurance on the Executive's life, if any,
is a general asset of the Company to which the Executive and any
beneficiary shall have no preferred or secured claim. Title to and
beneficial ownership of any cash or assets Company may earmark to pay
Executive or his beneficiary shall at all times remain with Company.
8.7 Reorganization. The Company shall not merge or consolidate into or with
another company, or reorganize, or sell substantially all of its assets
to another company, firm, or person unless such succeeding or continuing
company, firm, or person agrees to assume and discharge the obligations
of the Company under this Agreement. Upon the occurrence of such event,
the term "Company" as used in this Agreement shall be deemed to refer to
the successor or survivor company.
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8.8 Entire Agreement. This Agreement constitutes the entire agreement between
the Company and the Executive as to the subject matter hereof. No rights
are granted to the Executive by virtue of this Agreement other than those
specifically set forth herein.
8.9 Administration. The Company shall have powers which are necessary to
administer this Agreement, including but not limited to:
8.9.1 Interpreting the provisions of the Agreement;
8.9.2 Establishing and revising the method of accounting for the
Agreement;
8.9.3 Maintaining a record of benefit payments; and
8.9.4 Establishing rules and prescribing any forms necessary or
desirable to administer the Agreement.
8.9.5 No member of the Board shall be liable to any person for any
action taken or omitted in connection with the interpretation and
administration of this Agreement unless attributable to his own
willful misconduct or lack of good faith.
8.10 Named Fiduciary. For purposes of the Employee Retirement Income Security
Act of 1974, if applicable, the Company shall be the named fiduciary and
plan administrator under the Agreement. The named fiduciary may delegate
to others certain aspects of the management and operation
responsibilities under this Agreement including the employment of
advisors and the delegation of ministerial duties to qualified
individuals.
8.11 No Trust Created. Nothing contained in this Agreement, and no action
taken pursuant to its provisions by either party hereto, shall create,
nor be construed to create, a trust of any kind or a fiduciary
relationship between the Company and the Executive, his designated
beneficiary, any other beneficiary of the Executive or any other person.
8.12 Consumer Price Index Dispute. In the event of a dispute in determining
the Consumer Price Index or the amount of the increased benefit based
upon the Consumer Price Index the certified public accounting firm of
Xxxxxxx Xxxxx & Company, Greenville, South Carolina, or its successor
shall make such determination which shall be conclusive and binding upon
all parties to this Agreement.
8.13 Date of Birth. Executive hereby represents to Company that his date of
birth is September 2, 1941.
IN WITNESS WHEREOF, the Executive and a duly authorized Company officer
have signed this Agreement.
EXECUTIVE: COMPANY:
The Peoples National Bank
s/Xxxxxx X. Xxx s/X. X. Xxxxxxxx
______________________ By: _________________________
Xxxxxx Xxx
Its: President
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SCHEDULE A
THE PEOPLES NATIONAL BANK SALARY CONTINUATION AGREEMENT
Xxxxxx Xxx
Early Section 2.1.3
Vested Termination Disability Annual Section 3.1.3
Plan Benefit Accrual Vesting Accrual Vested Annual Benefit Benefit Payable Death Benefit
Year Level Balance Schedule Balance Benefit Payable at Age 66 at Age 66 Payout Period
---- ----- ------- -------- ------- ------- ----------------- --------- -------------
1 35,130 20,255 100% 20,255 35,130 35,130 4,610 29
2 36,535 43,124 100% 43,124 36,535 36,535 9,063 27
3 37,997 69,018 100% 69,018 37,997 37,997 13,393 25
4 39,516 98,439 100% 98,439 39,516 39,516 17,638 23
5 41,097 132,015 100% 132,015 41,097 41,097 21,842 21
6 42,741 170,546 100% 170,546 42,741 42,741 26,054 19
7 44,451 215,100 100% 215,100 44,451 44,451 30,342 17
8 46,229 267,183 100% 267,183 46,229 46,229 34,801 15
9 48,078 329,128 100% 329,128 48,078 48,078 39,584 13
10 50,001 405,218 100% 405,218 50,001 50,001 45,000 11
11 52,001 507,128 100% 507,128 52,001 52,001 52,001 9
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The Peoples National Bank
SALARY CONTINUATION AGREEMENT
BENEFICIARY DESIGNATION
I designate the following as beneficiary of any death benefits under The Peoples
National Bank Salary Continuation Agreement:
Primary: __________________________________
__________________________________
__________________________________
Contingent A: __________________________________
__________________________________
__________________________________
Contingent B: __________________________________
__________________________________
__________________________________
Contingent C: __________________________________
__________________________________
__________________________________
Note: To name a trust as beneficiary, please provide the name of the
Trustee and the exact date of the trust agreement.
I understand that I may change any beneficiary designations by filing a new
written designation with the Company. This benefit designation shall be
controlled by section 4.1 of the Salary Continuation Agreement.
Signature: _____________________________
Date: _______________
Accepted by the Company this _______ day of ______________, 1998.
By: _______________________________
Title: ______________________________
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