EMPLOYMENT AGREEMENT

 

                                                                  Exhibit 10 (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                         EXECUTIVE EMPLOYMENT AGREEMENT

 

 

                        FIRST CHESTER COUNTY CORPORATION

 

                    THE FIRST NATIONAL BANK OF CHESTER COUNTY

 

                                       and

 

                             JOHN A. FEATHERMAN, III

 

 

 

 

 

 

 

 

 

 

 

 

 

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                                                  TABLE OF CONTENTS

 

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1.       Employment.......................................................................................................2

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2.       Term.............................................................................................................2

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3.       Compensation.....................................................................................................2

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4.       Position and Responsibilities....................................................................................3

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5.       Termination......................................................................................................4

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6.       Indemnification.................................................................................................12

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7.       Expenses and Automobile.........................................................................................12

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8.       Restrictive Covenant............................................................................................12

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9.       Binding Effect..................................................................................................13

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10.      Notice..........................................................................................................13

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11.      Waiver of Breach................................................................................................13

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12.      Vested Benefits.................................................................................................13

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13.      Savings Clause..................................................................................................14

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14.      Governing Law...................................................................................................14

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15.      Entire Agreement; Modification..................................................................................14

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EXHIBIT "A"..............................................................................................................16

 

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                              EMPLOYMENT AGREEMENT

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     THIS  EMPLOYMENT  AGREEMENT  made this 13th day of November,  2003,  by and

between FIRST CHESTER COUNTY CORPORATION,  a Pennsylvania  business corporation,

and THE FIRST  NATIONAL BANK OF CHESTER  COUNTY,  a  wholly-owned  subsidiary of

First Chester County  Corporation and a national  banking  association  with its

principal  offices  located at 9 North High Street,  West Chester,  Pennsylvania

(hereinafter  individually referred to as "Corporation" and "Bank" respectively,

and  collectively  referred  to as "FNB")  and JOHN A.  FEATHERMAN,  III of West

Chester, Pennsylvania (hereinafter referred to as "Featherman").

                                  

                                    RECITALS

 

     Featherman  is  presently  a  member  of  the  Board  of  Directors  of the

Corporation  and the Bank.  Featherman's  leadership  skills and  services  have

constituted  a major factor in the  successful  growth and  development  of FNB.

 

     FNB recognizes that  Featherman's  contributions  have been substantial and

meritorious and, as such,  Featherman has demonstrated unique  qualifications to

act in an executive capacity for FNB. 

 

     FNB desires to employ and retain the experience  and financial  ability and

services of Featherman as Chairman of the Board of Directors and Chief Executive

Officer  from the  effective  date hereof and to prevent  any other  business in

competition  with FNB from securing the benefit of his services,  background and

expertise  in  the  banking  business.

 

     The terms,  conditions and undertakings of this Agreement were submitted to

and  duly  approved  and  authorized  by the  Boards  of  Directors  of both the

Corporation  and  the  Bank  at  separate  meetings. 

 

                                  WITNESSETH:

 

     NOW,THEREFORE, in consideration of the foregoing recitals, which are hereby

incorporated by reference, and intending to be legally bound hereby, the parties

hereto agree as follows:

 

1.   Employment.

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     FNB hereby employs  Featherman as Chairman of the Board and Chief Executive

Officer of the Corporation  and of the Bank, and Featherman  hereby accepts such

employment, under and subject to the terms and conditions set forth herein.

 

2.   Term.

     ----

 

     Subject  to the  provisions  for  termination  of this  Agreement  provided

herein, the term of this Agreement shall be for a period commencing November 13,

2003, and terminating December 31, 2006 (the "Term"). Thereafter, the Term shall

be extended  automatically  for a one year term, year to year,  unless either of

the  following  two  conditions  is met:  (a)  FNB or  Featherman  give  written

termination  notice  pursuant to  Paragraph 6 hereof,  or (b) FNB or  Featherman

agree to a mutually acceptable date on which to terminate this Agreement

 

3.   Compensation.

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     During the Term, FNB shall pay Featherman a salary (the "Compensation") and

provide  Featherman  with  life,  health  and  disability   insurance  coverage,

retirement  benefits,  vacations,  bonuses, and other benefits (the "Benefits"),

the amounts and nature of which shall be fixed by the Boards of Directors of the

Corporation and the Bank from time to time and set forth on the attached Exhibit

"A"; provided, however, that in no event shall Featherman's Compensation be less

than one hundred percent (100%) of the Compensation set forth on Exhibit "A" and

in no event shall  Featherman's  Benefits be less than or  materially  different

from the Benefits he is to receive as of the date of this Agreement.

 

4.   Position and Responsibilities.

     -----------------------------

 

     (a)  Position and Duties.  Featherman  shall be employed as the Chairman of

the Board of Directors and Chief Executive Officer of the Corporation and of the

Bank, and except as set forth in this  Agreement  shall continue to serve as the

Chairman  of  the  Board  of  Directors  and  Chief  Executive  Officer  of  the

Corporation  and of the Bank  throughout  the  entire  Term.  In no event  shall

Featherman be employed by the  Corporation  or the Bank during any calendar year

subsequent to 2003 at a lower position or rank or with substantially  diminished

authority or responsibilities,  and any such diminution in position or authority

shall be considered a breach of this  Agreement.  Featherman  shall  diligently,

efficiently and effectively  perform such duties as shall be reasonably assigned

to him, which shall consist of the general and active management of the business

of FNB and such other duties of  supervision  and  management  as are  generally

vested in the  office of Chief  Executive  Officer  of a  corporation  or as are

described in job descriptions  reasonably  established by the Board of Directors

of the  Corporation  or the Bank for such offices.  During the Term,  Featherman

shall devote substantially all of his time,  attention,  knowledge and skills to

the business and interests of FNB. The foregoing sentence shall not be construed

to  prevent  Featherman  from  making  investments  or  participating  in  other

non-competing    businesses,    enterprises   or   charitable   or   educational

organizations,  provided that he does not become engaged in any such activity to

an extent which  materially  interferes with his ability to discharge his duties

and  responsibilities  to FNB.  Featherman  shall at all times  during  the Term

refrain from doing any act,  disclosing any information or making any statements

to any person other than  officers of FNB which may result in the  disclosure of

confidential  information or adversely  affect the good reputation of FNB in the

community  or  which  might  adversely   affect  the  professional  or  business

relationship  between  FNB and any  business,  depositor,  borrower or any other

person  with whom FNB is doing  business  or is  contemplating  doing  business.

 

     (b)  Office  and  Support.  FNB shall  provide  Featherman  with an office,

secretarial  assistance and such other  facilities and support services as shall

be suitable to Featherman's position and responsibilities as set forth above and

as may be necessary to enable Featherman to perform such duties  effectively and

efficiently.

 

     (c) Location of Office. In connection with  Featherman's  employment by the

Corporation and the Bank,  Featherman shall maintain his office at the principal

executive  offices  of  FNB  located  at 9  North  High  Street,  West  Chester,

Pennsylvania,  or at such  other FNB  office as the  Board of  Directors  of the

Corporation  and/or the Bank may select  within the  immediate  vicinity of West

Chester, Pennsylvania.

 

5.   Termination.

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     (a)  Death.  If  Featherman  dies  during  his  employment  hereunder,  his

Compensation  and Benefits  hereunder  shall  terminate,  and his bonus (if any)

shall be prorated as of the last day of the month which is the third month after

the month in which he dies.

 

     (b) Disability. If Featherman shall become disabled (as determined by FNB's

insurance  carrier or a physician of its choice) during the Term,  then from and

after the date upon which it is determined that  Featherman  became disabled and

until such time as  Featherman  returns to the full time  employment  at FNB, he

shall not receive his Compensation  and Benefits,  but shall only be entitled to

receive disability  benefits as are provided under the disability  insurance and

salary  continuation  policy covering Featherman which is maintained in force by

FNB at the  time  such  disability  occurs.  FNB  shall  maintain  a  disability

insurance policy or a salary  continuation policy covering Featherman during the

entire  Term,  and FNB  shall  not  cause  or  suffer  any  termination,  lapse,

suspension  or  modification  of any of such  policies or any  reductions in the

amounts of coverage provided thereunder without first giving Featherman at least

thirty (30) days prior written notice thereof

 

     (c) For Cause.  The Board of Directors of the  Corporation  or the Bank may

terminate this Agreement at any time, "For Cause", if Featherman is convicted of

a crime which is a felony under the laws of the state in which he is  prosecuted

for such crime and which involves theft, embezzlement, breach of fiduciary duty,

or any similar crime involving moral  turpitude,  or if he breaches any material

provision of this Agreement or substantially fails to provide the services which

are  required  of him  under  the  terms of this  Agreement.  However,  prior to

terminating this Agreement by reason of Featherman's failure to provide services

hereunder  or his  breach  of any  provision  of this  Agreement,  the  Board of

Directors of the  Corporation  or the Bank shall first give  Featherman  written

notice specifically  identifying the manner in which Featherman has breached the

terms  of this  Agreement  and the  approximate  date or  dates  on  which  such

violations  have  occurred.