EX-10.9 2 mrbk-20210331xex10d9.htm EX-10.9

‌Exhibit 10.9

CHANGE IN CONTROL AND NON-COMPETITION AGREEMENT

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This Change in Control and Non-Competition Agreement (“Agreement”) is entered into effective as of November 2, 2018 (“Effective Date”), by and between Meridian Bank, headquartered at 9 Old Lincoln Highway, Malvern, PA (“Bank”) and Randy J. McGarry, with an address of North Wales, PA (the “Employee”).

BACKGROUND

WHEREAS, the Employee is currently employed as a Senior Vice President and Chief Information Officer of the Bank and is an integral part of its management;

WHEREAS, the Bank considers it essential to the best interests of its stockholders to foster the continuous employment of key management personnel such as Employee;

WHEREAS, the Bank recognizes that the possibility of a change in control of the Bank will cause uncertainty and distract the Employee from his/her assigned duties to the detriment of the Bank and its stockholders;

WHEREAS, the Bank is concerned that without an agreement relating to Employee’s severance in the event of a change in control Employee may not be incented to stay and fulfill Employee’s assigned duties during the period prior to or after a change in control; and

WHEREAS, the Board of Directors of the Bank (“Board”) has determined that appropriate steps should be taken to reinforce and encourage the Employee’s continued attention and dedication to the Employee’s assigned duties in the event of a change in control of the Bank.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this Agreement and other good and valuable consideration, the Employee and the Bank, intending to be legally bound, hereby agree as follows:

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1. | Definitions.

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The following terms shall have these meanings in this Agreement:

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“A g r e e d C o m p e ns a ti on” sh a l l mean: t he sum of (A) t he Employee’s annu a l b a se s a l a r y imm e d i a t e l y p rece d i n g Employee’s t er mi n a ti on a nd (B) t he a v er a ge o f Employee’s a nnu a l cash and stock bonus e s r e ce i v e d w it h i n t he t wo (2) ca l e nd a r y e ar s imm e d i a t e l y p r e ce d i n g Employee’s t er mi n a ti on.

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“Cause” shall mean:

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(i) Employee’s c onv i c ti on of or p l e a of g u il t y o r no l o c on t e nd e r e t o a f e l o n y, a cr im e o f fa l s e ho o d or t he ac t u a l i n car c era ti on of Employee f or a p er i od of t h i r t y (30) c ons ec u ti ve d a y s o r m o re;

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(ii) Employee’s re m ov a l or p r oh i b iti on fr om b e i ng a n i ns tit u ti on a l-aff ili a t e d p a r t y b y a f i n a l o r d e r of a n a pp r op r i a t e fe d e r a l or s t a t e b a nk i ng a g e n c y;

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1

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‌Exhibit 10.9

(iii) un l a w f ul h ara ss m e nt b y Employee a g a i nst e m p l o y e e s, c us t o m er s, b us i n e ss a sso c i a t e s, c on t r ac t o r s, or v e ndo r s of t he Ba nk wh i c h re su l t s or m a y be rea so n a b l y e x p ec t e d t o re su l t i n m a t er i a l li a b ili t y t o t h e B a nk, f o ll ow i n g a good faith i nv e s ti g a ti on of t he c l a im s b y the Bank or its t h i r d p a r t y agent;

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(i v) t he r e ce i pt of a n y f i n a l c ea se a nd d e s i st o r d e r i ss u e d b y a b a nk r e gu l a t o r y a u t h o r i t y t o t he Employee or such authority orders in writing that the Bank terminate the employment of the Employee with the Bank or relieve Employee of his/her material duties hereunder;

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(v) a n y m a t er i a l a c t of f r a ud, mi s a pp r op r i a ti on, or embezzlement by Employee which causes harm to the Bank;

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(vi) the gross negligence of the Employee in connection with the performance of his/her material duties for the Bank;

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(vii) the failure, following written notice and a reasonable cure period, of the Employee to follow the instructions of the chief executive officer of the Bank, provided such instructions are also lawful and consistent with the Employee’s duties; or

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(viii)a breach by Employee of any material provision of this Agreement, after written notice thereof and a 30-day opportunity to cure in the event that such breach was not willful.

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(Hence, “without Cause” shall mean that none of (i) through (viii) above occurred.)

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“C h a nge i n C on t r o l” sh a l l m ea n:

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(i) a n y “p er son” or m o r e t h a n one p er son ac ti n g a s a g r oup (a s su c h t e r m i s d ef i n e d i n S ec ti on 409A of t he C ode a nd a n y I n t e r n a l R e v e nue Gu i d a n c e a nd r e g u l a ti o ns und e r S ec ti on 409A of t h e C od e), o ther t h a n t he Ba nk o r a n y “p er son” who on t he d a t e h e r e of i s a d i rec t or or o ff i c e r of t he B a nk, a c qu i re s own er sh i p of s t o c k o f t h e B a nk, t o g e ther w it h s t o c k h e l d b y su c h p er son c ons tit u t e s m o r e t h a n f i f t y p er c e nt (50%) of t he t o t a l fa i r m ar k e t v a l ue o r t o t a l vo ti ng po w e r of t he s t o c k of t he Ba nk; or

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(ii) a n y “p er son” or m o r e t h a n one p er son ac ti n g a s a g r oup (a s su c h t e r m i s d ef i n e d i n S ec ti on 409A of t he C ode a nd a n y I n t e r n a l R e v e nue Gu i d a n c e a nd r e g u l a ti o ns und e r S ec ti on 409A of t he C od e), ac q u i re s (or h a s ac qu i r e d du r i ng t h e 12-m on t h p er i od e nd i n g on t he d a t e of t he m ost rece nt a c qu i s iti on b y su c h p er son or p er sons) ow n er sh i p of s t o c k of t he Ba nk poss e ss i n g t h i r t y-f i ve p e rce nt (35%) or m o r e of t he t o t a l vo ti ng po w e r of t h e s t o c k of t he B a nk; or

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(iii) du r i ng any p er i od of one (1) year during this Ag ree m e n t, individuals who at the beginning of such period c ons tit u t e t he B o ar d of D i rec t o r s o f t he B a nk c e a se f o r a n y r ea son t o c ons tit u t e a t l ea st a m a j o r i t y ther e o f;

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provided, however, that that the reorganization of the Bank into a bank holding company structure shall not, by itself, constitute a Change in Control.

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‌Exhibit 10.9

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“D i s a b ili t y” shall have the same meaning as given to it under t he l on g-t e r m d i s a b ili t y p l a n covering e m p l o y e e s of t he Ba nk (or if no such plan is in place, then as determined by a physician agreeable to both Bank and Employee or, if applicable, Employee’s legally authorized representative).

“Good Reason” shall mean, without the express written consent of the Employee, the occurrence of any of the following:

(i) the material reduction or diminution in the Employee’s authority, duties or responsibilities with the Bank, including, but not limited to, the continuous assignment to Employee of any duties materially inconsistent with Employee’s position with the Bank, or a material negative change in the nature or status of Employee’s responsibilities or the conditions of Employee’s employment with the Bank from those in effect immediately prior to the Change in Control;

(ii) ) a n y re d u c ti on i n Employee’s annu a l b a se s a l a r y a s i n eff e c t on t he d a t e h ere o f or a s t he s a m e m a y b e i n crea s e d fr om tim e t o tim e;

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(iii) a f a il u r e t o p r ov i de Employee w it h b e n ef it s a t l ea st a s fa vo ra b l e a s t hose e n j o y e d b y him/her immediately prior to the Change in Control und e r a n y o f t he p e ns i on, li f e i nsu ra n ce, m e d i c a l, h ea lt h a nd acc i d e n t, d i s a b ili t y, supplemental executive retirement or o ther e m p l o y e e p l a ns of Ba nk, or t he t a k i ng of a n y a c ti on t h a t wou l d m a t er i a l l y r e du c e a n y o f su c h b e n e f it s un l e ss su c h re du c ti on i s p ar t of a re du c ti on a pp li c a b l e t o a l l e m p l o y ee s; or

(iv) a rea ss i g n m e nt wh i c h re q u i re s Employee t o m ove his/her p r i n c i p a l r e s i d e n c e or his/her o ff i c e m o r e t h a n thirty-five (35) miles fr om t h e B a nk’s p r i n c i p a l e x ec u ti v e o ff i c e (presently in Malvern, PA).

“Protection Period” shall mean the twenty-four (24) month period commencing on the date that the Change in Control occurs.

“Termination Event” shall mean the Employee’s termination of employment either:

(i)by the Bank or its successor without Cause, excluding terminations due to the Employee’s death or Disability;
(ii)by the Bank or its successor as a condition to the consummation of (or entry into, provided the transaction is consummated) the Change in Control transaction; or
(iii)by the Employee for Good Reason.

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2.Termination due to a Termination Event/Change in Control Benefits. In the event that the Employee’s employment with the Bank or its successor is terminated due to the occurrence of a Termination Event during the Protection Period following a Change in Control, the Employee shall be entitled to the following payments and other benefits:

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(a) Employee sh a l l be e n titl e d t o rece i v e a l u m p sum p a y m e nt e qu a l t o one (1) times Employee’s Agreed Compensation (mi nus a p p li ca b l e w it hho l d i n g s a n d t a x e s) and a l u m p sum contribution e qu a l t o one (1) times the annual contribution into the Employee’s supplemental retirement plan (if such plan then exists), w it h i n t h i r t y (30) d a y s o f su c h t e r mi n a ti on. I n a dd iti on, f or a p er i o d of one y e ar f r om t he d a t e of t er mi n a ti on of e m p l o y m e n t, Employee sh a l l re c e i ve a

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‌Exhibit 10.9

c on ti nu a ti on of a l l li fe, d i s a b ili t y, m e d i ca l i nsu ra n c e a nd o ther no r m a l h ea lt h a nd w e l f ar e b e n e f it s i n ef f ec t w it h re sp e c t t o Employee du r i n g t he y e ar p r i or t o his t er mi n a ti on of e m p l o y m e n t, o r, i f Ba nk ca nnot p r ov i de su c h b e n ef it s b e ca use Employee i s no l o n g e r a n e m p l o y ee, the Ba nk sh a l l re im bu r s e Employee i n a n a m ount e qu a l t o t he m on t h l y p re mi um p a i d b y him t o ob t a i n subs t a n ti a l l y s i mil a r e m p l o y e e b e n e f it s wh i c h he e n j o y e d p r i or t o t er mi n a ti on f or one (1) y e ar f r om t he d a t e of t er mi n a ti on; and

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(b) Subject to section 5(a) below) if a b e n ef i t p l a n i n wh i c h t he Employee p ar ti c i p a t e s is terminated a nd, a s a re su l t of same, t he Employee i s sub j e c t t o ac c e l e r a t e d t a x a ti on or t a x a ti on a t a h i g h e r ra t e t h a n Employee wou l d h a ve b ee n h a d the plan not b ee n terminated, B a nk sh a l l p a y Employee a n a dd iti on a l p a y m e nt i n a n a m o unt su c h t h a t t he af t er-t a x p r o cee ds of su c h p a y m e nt w il l include the value of t h e a dd iti on a l t a x e s im pos e d upon t he Employee a s a r e su l t of t he t er mi n a ti on of t he p l a n. [If Employee does not, in fact, incur such higher tax obligation (such as Employee “rolls over” the subject monies, so properly avoiding a taxable event), then no such added payment shall be due to him.]

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However, if the Termination Event is Good Reason, Employee sh a l l, w it h i n thirty (30) d a y s of t he o cc u r r e n c e of same, p r ov i d e written no ti c e t o Ba nk of t he e x i s t e n c e of t he c ond iti on a nd p r ov i de Ba nk t h i r t y (30) d a y s from its receipt of such notice t o c u r e the c ond iti on. If the B a nk do e s not c u r e t he c ond iti on w it h i n t h i r t y (30) d a y s of its receipt of su c h no ti ce, Employee m a y r e s i g n f r om e m p l o y m e nt w it h t he Ba nk f o r Good R ea son, hence triggering the entitlements in 2(a) and 2(b) above as per their terms.

3.I n s u r a n ce; Ou t pl a ce m e n t S er v i ce s. I n a n y e v e nt f or wh i c h a n y s e v e ra n c e p a y m e n t s ar e t o be p a i d t o t he Employee b y t he B a nk pu r su a nt t o this Agreement, t he Employee sh a l l a l so r e ce i ve fr om t he B a nk, (i) d i rec t o r s’ a nd o ff i c er s’ l i a b ili t y i nsu ra n c e t a i l c o v er a g e (h e re i n af t e r r ef e rr e d t o a s “D&O T a i l C ov e r a g e”), for li a b ili t y c ov e r a ge f or a l l ac t s, o mi ss i ons, e v e n t s a nd o cc u r r e n c e s, t a k i ng p l a c e wh il e t he Employee w a s e m p l o y e d b y t he Ba n k, a nd su c h D&O T a i l C ov er a ge sh a l l re m a i n i n effec t un ti l t he s t a t u t e s of l i mit a t i ons f or a l l poss i b l e c l a im s a g a i nst t he Employee, h a ve e x p i re d; a nd (ii) ou t p l ace m e nt s er v i ce s wh i c h c ost t he B a nk not m o r e t h a n F i v e T hous a nd Do ll ar s ($5000).

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4. Co d e S ect i on 409A

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(a) A n y p a y m e n t s m a de pu r s u a nt t o this A g r e e m e n t, t o t he e x t e nt of p a y m e n t s m a de fr om t he d a t e of t er mi n a ti on t h r ou g h M a r c h 15 t h of t he ca l e n d a r y ea r f o ll ow i n g su c h d a t e, ar e i n t e nd e d t o c ons tit u t e s e p a r a t e p a y m e n t s f or pu r pos e s of T r ea s. R e g. §1.409A-2(b)(2) a nd t hus p a y a b l e pu r s u a nt t o t he “sho r t-t er m d e fe r ra l” r u l e s e t f o r t h i n T rea s. R e g. §1.409A-1(b)(4); t o t he e x t e nt su c h p a y m e n t s a r e m a de f o ll ow i ng s a i d M a rc h 15 t h, t h e y a r e i n t e nd e d t o c ons tit u t e s e p ara t e p a y m e n t s f or pu r p o s e s of T r e a s. R e g. §1.409A-2(b)(2) m a de u pon a n i nvo l un t a r y t er m i n a ti on fr om s er v i c e a nd p a y a b l e pu r s u a nt t o T re a s. R e g. §1.409 A-1(b)(9)(iii), t o t he m a x i m um e x t e nt p er mitt e d b y s a i d p r ov i s i on. In no event may the Employee, directly or indirectly, designate the calendar year of any payment under this Agreement.

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(b) The p ar ti e s h e re t o i n t e nd t h a t a n y a nd a l l pos t-e m p l o y m e nt c o m p e n s a ti on und e r this Ag r e e m e nt s a t i s f y t he r e qu i re m e n t s of S ec ti on 409A or a n e x ce p ti on or e x c l us i on ther e f r om t o a vo i d t he im pos iti on of a n y ac c e l era t e d or a dd iti on a l t a x e s pu r su a nt t o S ec ti on 409A. A n y t er m s not sp ec i f i ca l l y d e f i n e d sh a l l h a ve t he m e a n i ng a s s e t f o r t h i n S ec ti on 409A.

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‌Exhibit 10.9

(c) I f, w h e n Employee’s e m p l o y m e nt t e r mi n a t e s, Employee i s a “s p ec i f i e d e m p l o y e e,” a s d e f i n e d i n C ode S ec ti on 409A(a)(2)(B)(i), t h e n d e sp it e a n y p r ov i s i on of this A g r ee m e nt or o ther p l a n or a g r ee m e nt t o t he c on t r a r y, Employee w il l not be e n t itl e d t o t he p a y m e n t s un ti l t he ear li e st o f: (a) t he d a t e t h a t i s a t l ea st s i x m on t hs af t e r Employee’s “s e p ara ti on fr om s er v i c e” (as defined in Code Section 409A) f or r ea sons o ther t h a n Employee’s d ea t h, (b) t he d a t e of Employee’s d e a t h, or (c) a n y e ar li e r d a t e t h a t do e s not re su l t i n a dd iti on a l t a x or i n t ere st t o Employee und e r C ode S ec ti on 409A. As p r o m p t l y a s poss i b l e af t e r t he e nd of t he p er i od du r i n g wh i c h p a y m e n t s a r e d e l a y e d un d e r this p r ov i s i on, t he e n ti r e a m ount of t he d e l a y e d p a y m e n t s sh a l l be p a i d t o Employee i n a s i n g l e l u m p sum w it h a n y re m a i n i n g p a y m e n t s t o c o mm e n c e i n acc o r d a n c e w it h t h e t er m s of this A g r ee m e nt or o ther a pp li ca b l e p l a n o r a g ree m e n t.

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(d) No t w it hs t a nd i ng t he f o r e g o i n g, no p a y m e nt sh a l l be m a de pu r su a nt t o this Ag ree m e nt un l e ss su c h t er mi n a ti on of e m p l o y m e nt i s a “Se p ara ti on from S er v i c e” a s d e f i n e d i n C ode S ec ti on 409A.

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(e)To the extent required to avoid accelerated taxation and/or tax penalties under Code Section 409A, amounts reimbursable to Employee under this Agreement shall be paid to Employee on or before the last day of the year following the year in which the expense was incurred and the amount of expenses eligible for reimbursement (and in-kind benefits provided to Employee) during one year may not affects amount reimbursable or provided in any subsequent year.

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(f)The Bank makes no representation that any or all of the payments described in this Agreement will be exempt from or comply with Code Section 409A and makes no undertaking to preclude Code Section 409A from applying to any such payment. Employee understands and agrees that Employee shall be solely responsible for the payment of any taxes, penalties, interest or other expenses incurred by Employee because of non-compliance with Code Section 409A.

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5. Li m i t a t i o n s on P a y m e n t s.

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(a) No t w it hs t a nd i ng a n y t h i n g i n this A g ree m e nt t o t he c on t r a r y, i n t he e v e nt t he p a y m e n t s a nd b e n e f it s p a y a b l e h e r e und e r t o o r on b e h a l f of Employee (wh i c h t he p ar ti e s a g r e e w il l not i n c l ude a n y p o r ti on of p a y m e n t s a ll o ca t e d t o t he non-c o m p e t e p r ov i s i ons of S ec ti on 7 wh i c h ar e c l a ss i f i e d a s p a y m e n t s of r e a son a b l e c o m p e ns a ti on f or pu r pos e s of S ec ti on 280G of t he C od e), wh e n a d d e d t o a l l o ther a m oun t s a nd b e n ef it s p a y a b l e t o or on b e h a l f o f Employee, wo u l d re su l t i n t he im pos iti o n of a n e x c i se t a x und e r S ec ti on 4999 of t he I n t er n a l R e v e n u e C ode of 1986, a s a m e nd e d (t he “C od e”), t h e a m oun t s a n d b e n ef it s p a y a b l e h e re u nd e r sh a l l be re d u ce d t o su c h e x t e nt a s m a y b e n e c e ss a r y t o a vo i d su c h im pos iti on. A l l ca l c u l a ti ons r e qu i re d t o b e m a de und e r this subs ec ti on w il l be m a d e b y t h e Ba nk’s i nd e p e nd e nt pub l i c a c c oun t a n t s, sub j ec t t o t he r i g ht of Employee’s re p re s e n t a ti ve t o re v i e w t he s a m e. The p ar ti e s rec o g n i z e t h a t t he ac t u a l im p l e m e n t a ti on of t he p r ov i s i ons of this subs ec ti on ar e c o m p l e x a nd a g r e e t o d ea l w it h eac h o ther i n g ood fa it h t o r e so l ve a n y qu e s ti ons or d i s a g r ee m e n t s a r i s i ng h e r e und er.

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(b) A l l p a y m e n t s m a de t o t he Employee pu r su a nt t o this A g ree m e nt or o ther w i s e, a r e sub j ec t t o a nd c ond iti on e d upon t h e i r c o m p li a n c e w it h a pp li ca b l e l a ws a nd a n y re g u l a ti ons p r o m u l g a t e d here u nde r, i n c l ud i n g, but not limit e d t o 12 C.F.R. P ar t 359.

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6. M i t i ga t i o n. Employee sh a l l not be required to mitigate the amount of any p a y m e nt p r ov i d e d f or i n this A g r ee m e nt b y s ee k i ng o ther e m p l o y m e nt or o ther w i s e. The a m ount of p a y m e nt o r t he b e n e f i t p r ov i d e d f o r i n this A g ree m e nt sh a l l not be re d u ce d b y a n y c o m p e ns a ti on e ar n e d b y Employee

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‌Exhibit 10.9

a s t he r e su l t of e m p l o y m e nt b y a no ther e m p l o y e r or b y r ea son o f Employee’s re c e i pt of or r i g ht t o rece i v e a n y re ti re m e nt or o ther b e n ef it s af t e r t he d a t e of t e r mi n a t i on of e m p l o y m e nt or o ther w i s e.

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7. Cov e n a n t Not t o C o m p ete.

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(a) Employee h ere b y a c kn o w l e dg e s a nd rec o g n i z e s t he h i g h l y c o m p e titi ve n a t u r e of t h e bus i n e ss of t he Ba nk a nd a cc o r d i n g l y a g r e e s t h a t, du r i n g his employment a nd f or six (6) months fr om t h e end date of such employment (no matter what the reason, or “no reason,” for its ending), Employee sh a l l no t, e x ce pt a s o ther w i se p er mitt e d i n w r iti ng b y t he Ba nk:

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(i) be e ng a g e d, d i r e c t l y o r i nd i rec t l y, e ither f or his/her own acc ount or a s a g e n t, c onsu lt a n t, e m p l o y e e, p ar t n er, o f f i c e r, d i rec t o r, p r op r i e t o r, i n v e s t or (e x ce pt a s a n i nv e s t or own i ng l e ss t h a n 5% of t he s t o c k o f a pub li c l y ow n e d c o m p a n y) o r o ther w i s e of a n y p er son, f i r m, c o r po r a ti on or e n t er p r i se, i n t he b a nk i n g (i n c l ud i ng b a nk ho l d i n g c o m p a n y) i ndus t r y w it h i n thirty-five (35) miles fr om t h e B a nk’s p r i n c i p a l e x ec u ti v e o ff i c e (presently in Malvern, PA). (t he “Non-C o m p e titi on A r ea”); o r

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(ii) d i rec t l y or i nd i rec t l y so l i c i t p er sons or e n titi e s who are c us t o m er s or ref e rra l sou rce s of t he Ba nk or (after Employee’s termination) were so w i t h i n one y e a r of Employee’s t er mi n a ti on, t o a b e c o m e c us t o m e r or ref e rra l sou r c e of a p e r son or e n ti t y o ther t h a n t he Ba nk; or

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(iii) d i rec t l y o r i nd i rec t l y s o li c i t e m p l o y ee s of t he Ba nk who are so e m p l o y e d or (after Employee’s termination) were so w it h i n one y e a r o f Employee’s t er mi n a ti on t o wo r k f or a n y o n e o ther t h a n t h e B a nk.

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(b) I t i s e x p re ss l y und e r s t ood a nd a g ree d t h a t, a lt h ou g h Employee a nd t he Ba nk c ons i d e r t he re s t r i c ti ons c on t a i n e d i n p ar a g ra ph 7(a) h e r e of rea son a b l e f o r t he pu r p ose of p re s er v i n g f or t h e Ba nk it s g oo d w il l a nd o ther p r op r i e t a r y r i g h t s, i f a f i n a l j ud i c i a l d e t er mi n a ti on i s m a de b y a c ou r t h a v i ng j u r i sd i c ti on t h a t t he tim e or t err it o r y or a n y o ther r e s t r i c ti on c on t a i n e d i n p ar a g ra ph 7(a) h ere o f i s a n un rea son a b l e or o ther w i se un e n f o r c ea b l e r e s t r i c ti on a g a i nst Employee, t he p r ov i s i ons of p ara g ra ph 7(a) h ere o f sh a l l not be re nd e re d vo i d but sh a l l be d e e m e d a m e nd e d t o a pp l y a s t o su c h m a x im um tim e a nd t err it o r y a n d t o su c h o ther e x t e nt a s su c h c ou r t m a y j ud i c i a l l y d e t er mi ne or i nd i c a t e t o be rea so n a b l e. Furthermore, Employee agrees that the promises of the Bank set forth in this Agreement constitute good, valid and sufficient consideration for Employee’s promises contained in this Section 7 (entitled “Covenant Not to Compete”) and Employee hereby unconditionally waives any claim to the contrary.

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8. U n a u t h o r i ze d D i s c l os u re. Du r i n g his e m p l o y m e nt with the Bank, and a t a n y l a t e r tim e, Employee sh a l l no t use or d i s c l ose t o a n y p er son o ther t h a n an e m p l o y e e of t h e Ba nk o r a p e r son t o whom d i s c l osu r e i s also rea son a b l y n e ce ss a r y and a pp r op r i a t e i n c onn ec t i on w it h t he p erf o r m a n c e b y Employee of his du ti e s a s a n employee o f t he Ba nk, a n y m a t er i a l c on f i d e n ti a l i n f o r m a ti on ob t a i n e d b y him wh il e i n t he e m p l o y of t he B a nk w it h re sp e c t t o a n y of t he B a nk’s s e r v i ce s, p r odu c t s, im p r o v e m e n t s, f o r m u l a s, finances, d e s i g ns or s t y l e s, p r o ce ss e s, c us t o m er s, m e t hods of bus i n e ss or a n y bus i n e ss p rac ti ce s t h e d i s c l osu r e of wh i c h c ou l d be or w il l be d a m a g i n g t o t he B a nk; p r ov i d e d, how e v er, t h a t c on f i d e n ti a l i n f o r m a ti on sh a l l not i n c l ude a n y i n f o r m a ti on: (a) that was properly disclosed by a duly authorized and properly acting bank employee as part of the Bank’s legally required public company disclosure obligations; (b) that entered the public domain subsequent to the time it was disclosed to Employee through no fault, act or omission of Employee; (c) that becomes known g e n e r a ll y

6

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‌Exhibit 10.9

t o t he pub li c (o ther t h a n a s a re su l t of un a u t ho r i z e d d i s c l osu r e b y Employee or a n y p er son w it h t he a ss i s t a n ce, c ons e nt or d i rec ti on of Employee); or (d) a n y i n f o r m a ti on t h a t m ust be d i s c l os e d a s re qu i re d b y l a w (with Employee, when legally permitted, providing Bank with reasonable prior notice of such intended required legal disclosure to enable the Bank to potentially challenge same). Employee acknowledges that legally protected consumer/customer information shall remain confidential information at all times as required by law.

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9. Wo r k M a d e f or Hi re. A n y w o r k product produced b y Employee while employed by Bank related to its business (including business of its subsidiaries) shou l d be c ons i d ere d a “W o r k M a de f or H i r e” a s t he ph ra se i s d e f i n e d b y t he U.S. c o p y r i g ht l a ws a nd sh a l l be own e d b y a nd f or t he e x p re ss b e n ef i t o f t he B a nk. I n t he e v e nt i t shou l d be e s t a b li sh e d t h a t su c h wo r k product do e s not qu a li f y a s a W o r k M a de f or H i re, Employee a g re e s t o a nd do e s h ere b y a ss i g n t o t he Ba nk a l l of his r i g h t s, titl e, a nd/or i n t ere st i n su c h wo r k p r odu c t, i n c l ud i n g, but not limit e d t o, a l l c o p y r i g h t s, p a t e n t s, t ra d e m ar ks, a nd p r op r i e t y r i g h t s.

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10. R et u r n of C o m p a n y P r o p ert y a n d Do c u m e n t s. Employee a g r e e s t h a t, a t t he tim e of t er mi n a ti on o f his e m p l o y m e n t, r e g ar d l e s s of t he r e a son f o r t e r mi n a ti on, he w il l d e li v e r t o t he B a nk a n y a nd a l l Bank p r o p er t y (including of any of its affiliates), i n c l ud i n g, but not limit e d t o, k e y s, s ec u r i t y c od e s or p a ss e s, m ob il e t e l e phon e s, r e c o r ds, d a t a, no t e s, re po r t s, p r opos a l s, li s t s, c o rre spon d e n ce, sp e c i f i ca ti ons, d ra w i n g s, b l u e p r i n t s, sk e t c h e s, so f t w a r e p r o g r a m s, e qu i p m e n t, o ther do c u m e n t s or p r o p er t y (including re p r odu c ti ons o f a n y of t he same in any form or format).

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11. L e gal E x p e n s e s. The Ba nk sh a l l re im bu r se Employee f or a l l rea son a b l e l e g a l fee s a nd e x p e ns e s he/she m a y i n c ur i n s ee k i ng t o ob t a i n or e n f o rc e a n y r i g ht or b e n ef i t p r ov i d e d b y this Ag ree m e n t, but on l y w i t h re sp ec t t o su c h c l a i m or c l a im s upon wh i c h Employee p re v a il s (i n c l ud i n g b y r ea son of n e g o ti a t e d s e ttl e m e n t). S u c h p a y m e n t s sh a l l b e m a de w it h i n f ou r t e e n (14) d a y s af t e r d e l i v e r y of Employee’s w r itt e n re qu e st f or p a y m e nt acc o m p a n i e d w it h su c h e v i d e n c e of fe e s a nd e x p e ns e s i n c u rre d a s t he B a nk m a y r e a so n a b l y re qu i r e.

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12. No t i ce s. E x ce pt a s o ther w i se p r ov i d e d i n this A g ree m e n t, a n y no ti c e re q u i re d or p er mitt e d t o be g i v e n und e r this A g r ee m e nt sh a l l be d ee m e d p r op er l y g i v e n i f i n w r iti ng a nd i f m a il e d b y r e g i s t ere d or cer ti f i e d m a il, pos t a ge p r e p a i d w it h re t u r n rece i pt re q u e s t e d, t o Employee’s re s i d e n ce [or hand delivered to Employee], i n t he ca se of no ti ce s t o Employee, a nd so mailed t o the CEO of t he B a nk, [or hand delivered to the CEO] i n t he ca se of no ti ce s t o t he Ba nk.

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13. Wa i v er. No p r ov i s i on o f this A g r e e m e nt m a y be m od i f i e d, w a i v e d or d i s c h a r g e d un l e ss su c h w a i v e r, m o d i f i ca ti on or d i s c h ar g e i s a g ree d t o i n w r iti ng a nd s i g n e d b y Employee a nd a n executive o ff i ce r s p ec i f i ca l l y d e s i g n a t e d b y t h e B o ar d of D i rec t o r s o f t he B a nk. N o w a i v e r b y e ither p a r t y h ere t o a t a n y tim e o f a n y b re a c h b y t he o ther p a r t y h ere t o o f, or c o m p li a n c e w it h, a n y c ond iti on or p r ov i s i on of this Ag ree m e nt t o be p erf o r m e d b y s u c h o ther p ar t y s h a l l be d ee m e d a w a i v e r of s imil a r or d i ss imil a r p r ov i s i ons or c ond iti ons a t the s a m e or a t any p r i or or subs e qu e nt tim e.

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14. Ass i g n m e n t. This A g re e m e nt sh a l l not be a ss i g n a b l e b y a n y p ar t y, e x ce pt b y t h e

Ba nk t o a n y s u cce ss o r i n i n t ere st t o it s b us i n e ss.

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15. En t i r e Ag re e m e n t. This A g r ee m e nt sup e r s e d e s a n y a nd a l l prior a g r e e m e n t s, e ither o ra l or i n w r iti n g, b e t w ee n t he p ar ti e s w it h re sp ec t t o its change on control subject matter; (however it does not replace any change on control rights under any separate retirement plan(s) of the

7

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‌Exhibit 10.9

Bank (such as any Supplemental Executive Retirement Deferred Compensation Plan), which plan(s) shall not be effected by this Agreement).

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16. Su cce sso r s; Bindin g A g re e m e n t.

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(a) The B a nk w il l re qu i r e a n y s u c c e ssor (w h e ther d i rec t or i nd i r ec t, b y pu rc h a s e, m e r g er, c onso l i d a ti on, or o ther w i s e) t o a l l or subs t a n ti a l l y a l l of t he bus i n e ss a nd/or a s s e t s of t he Ba nk t o e x p re ss l y a ssu m e a nd a g re e t o p erf o r m this A g r ee m e nt i n t he s a m e m a nn e r a nd t o t he s a m e e x t e nt t h a t t he Ba nk wou l d be r e qu i re d t o p erf o r m i t i f no su c h su cce ss i on h a d t a k e n p l ace. Fa il u r e b y t he B a nk t o ob t a i n su c h a ssu m p ti on a nd a g r e e m e nt p r i or t o t he eff e c ti v e n e ss of a n y su c h su c ce ss i on sh a l l c ons tit u t e a b reac h of this Ag ree m e n t. As us e d i n this A g r ee m e n t, “B a nk” sh a l l m ea n t he Ba nk, a s d ef i n e d p r e v i ous l y a nd a n y s u cce ss o r t o it s bus i n e ss a nd/o r a ss e t s a s a f o re s a i d wh i c h a ssu m e s a nd a g ree s t o p erf o r m this A g r ee m e nt b y op e ra ti on of l a w o r o ther w i s e.

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(b) This A g r ee m e nt s h a l l be binding on and i nu r e t o t he b e n ef i t of the Bank and the Employee and their respective successors, heirs, assigns and l e g a l re p r e s e n t a ti v e s (and any subsequent successors, heirs, assigns and legal representatives). I f Employee shou l d die f o ll ow i ng a Termination Event af t e r a C h a nge of C on t r ol a nd a n y a m oun t s wou l d be p a y a b l e t o Employee und e r this A g r ee m e nt i f Employee h a d c on ti nu e d t o li v e, a l l su c h a m oun t s s h a l l be p a i d i n a cc o r d a n c e w it h t he t e r m s of this Ag ree m e nt t o Employee’s designee(s) (including if by Employee’s Will or, if applicable, intestacy laws).

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17. A r bi tr a t i o n. T h e Ba n k a nd Employee r e c o g n i z e t h a t i n t he e v e nt a d i spu t e shou l d ar i se b e t w ee n t h e m c on cer n i n g t he i n t er p r e t a ti on or im p l e m e n t a ti on of this Ag ree m e n t, l e n g t h y a nd e x p e ns i ve liti g a ti on w il l not aff o r d a p rac ti c a l re s o l u ti on of t he i ssu e s w it h i n a r e a son a b l e p er i od of tim e. C ons e qu e n t l y, eac h p ar t y a g r e e s t h a t a l l d i spu t e s, d i s a g r e e m e n t s a nd qu e s ti ons of i n t er p re t a ti on c on cer n i n g this Ag ree m e nt (e x ce pt f or a n y e n f o r c e m e nt so u g ht w it h re sp ec t t o S ec ti ons 7, 8 or 10, wh i c h m a y be liti g a t e d i n c o u r t notwithstanding anything to the contrary elsewhere herein, i n c l ud i n g a n ac ti on f or i n j un c ti on or o ther re li ef) a r e t o be sub mitt e d f or re so l u ti on, to t he A m er i ca n A r b it ra ti on Asso c i a ti on (t he “Asso c i a ti on”) at its offices nearest to Malvern, Pennsylvania, i n a c c o r d a n c e w it h t he Asso c i a ti on’s N a ti on a l R u l e s f or t he R e so l u ti on of E m p l o y m e nt D i spu t e s or o ther a pp li ca b l e r u l e s t h e n i n effec t (“R u l e s”). The Ba nk or Employee m a y i n iti a t e a n ar b it ra ti on p r o cee d i n g a t a n y tim e b y g i v i ng no ti c e t o t he o ther i n acc o r d a n c e w it h t he R u l e s. The B a nk a nd Employee m a y, a s a m a tt e r o f r i g h t, m u t u a l l y a g r e e on t he a ppo i n tm e nt of a p ar ti c u l a r ar b it ra t or f r om t he Asso c i a ti on’s poo l. The Bank shall pay all costs of the arbitrator. The ar b it ra t or sh a l l not be bound b y t he r u l e s of e v i d e n c e a n d p r o ce du r e of t he c o u r t s of t he C o mm onw ea lt h of P e nn s y l v a n i a but sh a l l be bound b y t h e subs t a n ti ve l a w a pp li ca b l e t o this A g r e e m e n t. The d ec i s i on of t he ar b it ra t o r, a bs e nt f r a ud, du re ss, i n c o m p e t e n c e or g r oss a nd obv i ous err o r of f a c t, sh a l l be f i n a l a nd b i nd i ng upon t he p ar ti e s a nd sh a l l be e n f o r c ea b l e i n c ou r t s o f p r op e r j u r i sd i c ti on. F o ll ow i ng w r itt e n no ti c e of a r e qu e s t f or ar b it ra ti on, t he Ba nk a nd Employee sh a l l be e n titl e d t o a n i n j un c ti on re s t r a i n i ng a l l f u r ther p r o c e e d i ngs i n a n y p e nd i ng or sub s e qu e n t l y f il e d liti g a ti on c on cer n i n g this A g r ee m e n t, e x ce pt a s o ther w i se p r ov i d e d herein.

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18. Va lidi t y. The i nv a li d i t y or un e n f o rc e a b ili t y of a n y p r ov i s i on of this Ag r ee m e nt sh a l l not af f ec t t he v a l i d i t y or e n f o r cea b ili t y of a n y o ther p r ov i s i on of this Ag ree m e n t, w h i c h sh a l l r e m a i n i n f u l l f o rc e a nd ef fec t.

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8

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‌Exhibit 10.9

19. A ppli c a bl e Law. This Agreement shall be governed by and construed in acc o r d a n c e w it h t he do m e s ti c, i n t er n a l l a w s of t he C o mm onw e a lt h of P e nn s y l v a n i a, w it hout r e g a r d t o it s c on f li c t s of l a ws p r i n c i p l e s.

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20. H e a din gs/Gender. The s ec ti on h ea d i n g s of this A g r e e m e nt ar e f or c on v e n i e n c e on l y a nd sh a l l not c on t r ol o r a ff ec t t he m ea n i n g or c ons t r u c ti on or limi t t he s c o p e o r i n t e nt of a n y of t he p r ov i s i ons of this A g r ee m e n t. References to gender herein shall mean that gender as applicable to each party hereto.

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21. No Right to Continued Employment. Nothing in this Agreement shall confer on the Employee any right to continue in the employ of the Bank or interfere in any way (other than by virtue of requiring payments or benefits as per the terms of this Agreement) with the right of the Bank or the Employee to terminate the Employee’s employment at any time.

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22. Review by Counsel. Employee represents that he has reviewed this Agreement in full with his own legal counsel as may have been desired before signing it. No provision hereof shall be construed against a party because such party or its representative drafted it.

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IN WI T N ES S W HE R E O F, t he p ar ti e s h a v e e x e c u t e d this A g r e e m e nt a s of t he d a t e f i r st a bove w r itt e n.

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ATTE S T: M E R I D I AN B ANK

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B y:

Authorized Officer

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W I TNE SS: EMPLOYEE

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____RANDY J. McGARRY_____________

Please print employee name above

9

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