EXHIBIT 10.6 1987 DIRECTOR'S DEFERRED COMPENSATION AGREEMENT
FOR XXXX X. XXXXXXXXX
DIRECTOR'S COMPENSATION AGREEMENT
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This Agreement is entered into this first day of May, 1987, between JUNIATA
VALLEY NATIONAL BANK, X.X. Xxx 00, Xxxxxxxxxxx, Xxxxxxxxxxxx 00000 (herein
referred to as the "Bank") and XXXX X. XXXXXXXXX, Xxx 00X Xxxx Xxxx, Xxxxxxxxx,
Xxxxxxxxxxxx 00000 (herein referred to as the "Director").
WITNESSETH
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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 $222,330
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payable in monthly installments of $1,852.75 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
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reaching age 65, the Bank agrees to pay to Director's beneficiary (ies)
designated in writing to the Bank, the sum of $1,852.75 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
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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 $222,330 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 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
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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
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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
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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
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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
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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 50 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
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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
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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
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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 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
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singular shall include the plural and the masculine shall include the
feminine gender.
15. This Agreement shall be binding upon and inure to the benefit of any
successor of the Bank and any such successor shall be deemed substituted
for the Bank under the terms of this Agreement. As used herein, the term
"successor" shall include any person, corporation or other business entity
which at any time, whether by merger, purchase or otherwise, acquires all
or substantially all of the stock, assets or business of the Bank.
16. If the Bank's marginal income tax bracket is different from 34% at the
time deferred income payments are made under this Agreement to the
Director or his beneficiary (ies), the payments may be adjusted by the
Board of Directors to reflect that change. The following formula could be
used to calculate the change in benefits: Monthly Income (As Shown) X .66
divided by 1 - Tax Bracket
17. All compensation provided by this Agreement is in addition to that which
is provided under the Director's Compensation Agreement dated May 1, 1983.
