7. The Agreement is subject to certain restrictions on payment of benefits following termination of employment for commission of a felony and certain noncompetition provisions.

8. The benefits under the Agreement are not transferable, and the executive and his beneficiary are considered general unsecured creditors of the Bank for the payment of benefits under the Agreement.

The material terms of the Plan are summarized as follows:

1. Contribution Credits. The Bank shall credit $45,000 per calendar year to executive’s account as long as executive is employed by the Bank at the time such amount is credited. Contribution credits for any given Plan year shall be credited to the executive’s account at such time or times established by the Bank in its sole discretion.

2. Vesting. The executive is one hundred percent (50%) vested in his account balance as of the effective date of the Plan.

3. Forfeiture. In the event the executive’s employment is terminated for cause, as defined in the Plan, no benefits of any kind will be due or payable by the Bank under the terms of the Plan and all rights of the executive, his beneficiary, executors, or administrators, or any other person, to receive payments thereof shall be forfeited.

4. Separation from Service. In the event the executive separates from service, as defined in the Plan, including death but excluding for cause, as defined in the Plan, the Bank shall pay to the executive (or his beneficiary) his vested account balance, calculated as of the date of separation from service, in a lump sum or up to one hundred eighty (180) monthly installments, as elected by the executive.

5. Change in Control. Within thirty (30) days following the effective date of the Plan, the executive must make a one-time election whether to be paid upon the Bank’s change in control, as defined in the Plan. If he so elects, the executive must also determine whether to be paid in a lump sum or up to one hundred eighty (180) monthly installments. If the executive fails to make these elections or such elections are ambiguous or do not comply with the terms of the Plan, the executive will be deemed to have elected not to be paid upon a change in control or to be paid in a lump sum as applicable. If the executive has chosen to be paid upon a change in control, then in the event of the Bank’s change in control while the executive is employed with the Bank, the Bank shall pay to the executive his vested account balance, calculated as of the date of the change in control, in the form elected by the executive. Payment shall be made or commence within ninety (90) days following the date of the change in control, with subsequent installments, if any, being paid on the first day of each month thereafter. In the event of the executive’s death after installments have commenced but prior to receiving all installments owed hereunder, as applicable, the Bank shall continue to pay any remaining installments to the executive’s beneficiary in accordance with the schedule the installments would have been paid to the executive had the executive survived.

6. Restrictions on Time of Payment. Solely to the extent necessary to avoid penalties under Section409A of the Internal Revenue Code of 1986 and related regulations, payments to be made as a result of a separation from service may not commence earlier than six (6)months after the executive’s separation from service if, to Section 409A, the executive is considered a key employee.

7. Section409A. The interpretation and distribution of the executive’s benefits under the Plan shall be made in a manner and at such times as to comply with all applicable provisions of Section409A and the regulations and guidance promulgated thereunder, or an exception or exclusion therefrom to avoid the imposition of any accelerated or additional taxes.

8. The Plan constitutes the unfunded, unsecured promise of the Bank to make payments to the executive or his beneficiary in the future and shall be a liability solely against the general assets of the Bank.

A copy of the Agreement and the Plan are attached hereto as Exhibits 99.1 and 99.2, respectively, and are incorporated herein by reference.

Further, on the same date, the Bank amended the Split Dollar Policy Endorsement attached as ExhibitB (the “Endorsement”) to its Amended and Restated Director Supplemental Life Insurance Plan dated as of December31, 2014 (the “Director Plan”). The amendment to the Endorsement adds to the definition of Death After Separation from Service to include that if the participant dies after separating from service and the participant had served at least a total of nine years as a director, the participant’s beneficiary shall be entitled to $250,000 upon the participant’s death. The amendment also includes service as an elected director of an institution acquired by ACNB Bank to count towards the years of service requirement.

The form of the Director Plan is attached hereto as Exhibit99.3 and incorporated herein by reference. The form of the Endorsement is attached hereto as Exhibit99.4 and incorporated herein by reference.

ITEM 9.01 Financial Statements and Exhibits

(d)Exhibits.

EXHIBITINDEX

ACNB CORP Exhibit
EX-99.1 2 a18-40776_1ex99d1.htm EX-99.1 Exhibit 99.1   ACNB BANK SALARY CONTINUATION AGREEMENT   THIS AGREEMENT is made this 27th day of November 2018,…
To view the full exhibit click here

About ACNB Corporation (NASDAQ:ACNB)

ACNB Corporation is a financial holding company. The Company’s banking operations are conducted through its operating subsidiary, ACNB Bank (the Bank), and offers a range of property and casualty, life and health insurance to both commercial and individual clients through its subsidiary, Russell Insurance Group, Inc. (RIG). The Company has two segments: the Bank and RIG. RIG is managed separately from the banking segment, which includes the Bank and related financial services that the Company offers through its banking subsidiary. Through its banking and nonbanking subsidiaries, the Company provides a range of banking and financial services to individuals and businesses, including commercial and retail banking, trust and investment management, and insurance. ACNB Bank is a commercial bank. ACNB Bank’s service delivery channels for its customers include the automated teller machine (ATM) network, customer contact center, online, telephone and mobile banking.