Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
(e)Cancellation of Change in Control Severance Agreement with R. David Beaver,
III. On January 19, 2021, the Registrant's board of directors approved the
cancellation of the Change in Control Severance Agreement (the "Agreement") with
R. David Beaver, III. The Agreement had been in effect since January 1, 2015.
Mr. Beaver is the chief financial officer of the Registrant and its wholly owned
subsidiary, Uwharrie Bank (the "Bank"), chief risk officer of the Registrant,
and president of the Bank. The cancellation of the Agreement was mutually agreed
to by the board of directors and Mr. Beaver.
Under the Agreement, Mr. Beaver was entitled to certain severance benefits if
his employment was terminated under certain circumstances following a "change in
control" of the Company. These benefits included a lump sum cash payment,
acceleration of vesting of outstanding equity awards, and up to one year of
health insurance premium reimbursements. A copy of the Agreement was included as
Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the
Securities and Exchange Commission on June 30, 2015.
Change in Supplemental Executive Retirement Plan Contribution Amount for R.
David Beaver, III. Mr. Beaver is a participant in the Registrant's Supplemental
Executive Retirement Plan (the "SERP"). The SERP is a non-qualified deferred
compensation plan maintained by the Registrant for certain of its executive
officers. Benefits accrue and vest during the period of employment, and can be
distributed in a single lump sum payment or in fixed monthly benefit payments
for up to ten years commencing with the participating officer's retirement or
separation from service under certain circumstances. The Registrant makes annual
cash contributions to the SERP for the benefit of the participants. On January
19, 2021, the Registrant's board of directors approved increasing the annual
cash contribution to the SERP to be made for Mr. Beaver's benefit to $35,000.
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