UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
November 7, 2011
Date of Report (Date of earliest event reported)
QNB Corp.
(Exact name of registrant as specified in its charter)
| Pennsylvania | 0-17706 | 23-2318082 | ||
| (State or other jurisdiction of | (Commission File Number) | (I.R.S. Employer Identification No.) | ||
| incorporation or organization) |
| 15 North Third Street, Quakertown, PA | 18951-9005 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: (215) 538-5600
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))
| Item 5.02 | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers |
(e) On November 7, 2011, QNB Corp. (the “Company”) and Scott G. Orzehoski, Senior Vice President/Chief Lending Officer of QNB Bank (the “Bank”), the wholly owned banking subsidiary of the Company, entered into a change in control agreement, a copy of which is attached hereto as Exhibit 10.1.
Under the Agreement, if Mr. Orzehoski’s employment is terminated by the Company or the Bank (other than for Cause as defined in the Agreement) within three years from the anniversary date of a “Change in Control,” then he will entitled to receive in lieu of any other severance benefits to which he may be entitled, a lump-sum payment in an amount equal to the average annual aggregate compensation paid to him during the five calendar years preceding the calendar year in which the termination of employment occurs. Under the Agreement, the term “Change in Control” is defined to mean (i) a merger, consolidation, or division involving the Company or the Bank, a disposition of substantially all of the assets of the Company or the Bank, or a purchase by the Company or the Bank of substantially all of the assets of another entity, unless, in any such case, the transaction is approved in advance by 70% or more of the members of the board of directors of the Company or the Bank who are not interested in the transaction, and a majority of the members of the board of directors of the legal entity resulting from or existing after the transaction (and of the board of directors of such entity’s parent corporation, if any) are former members of the board of directors of the Company or the Bank, (ii) the acquisition by a person or group of beneficial ownership of 25% of more of the voting securities of the Company or the Bank, (iii) during any period of two consecutive years, individuals who at the beginning of such period constitute the board of directors of the Company or the Bank cease for any reason to constitute at least a majority thereof, unless the election of each director who was not a director at the beginning of such two-year period has been approved in advance by directors representing at least two-thirds of the directors then in office who were directors at the beginning of such two-year period, or (iv) any other change in control similar in effect to those listed.
The Agreement further provides that, if the lump-sum payment under the Agreement, when added to all other amounts or benefits provided to or on behalf of Mr. Orzehoski in connection with his termination of employment, would result in the imposition of an excise tax under Section 4999 of the Internal Revenue Code of 1986, as amended (the” Code”), such payment will be reduced to the extent necessary to avoid such excise tax imposition. In addition, if any portion of the amount payable to Mr. Orzehoski is determined to be non-deductible pursuant to the regulations promulgated under Section 280G of the Code, the Company is required only to pay to him the amount determined to be deductible under Section 280G of the Code.
The foregoing description is qualified by reference to the Agreement, which is attached as Exhibit 10.1.
| Item 9.01 | Financial Statements and Exhibits |
The following exhibits are filed herewith:
| Exhibit No. | Description | |
| 10.1 | Change in Control Agreement, dated as of November 7, 2011, between QNB Corp. and Scott G. Orzehoski. |
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| QNB Corp. | |||
Dated: November 9, 2011 | By: | /s/ David W. Freeman | |
David W. Freeman | |||
President | |||