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                                                                    Exhibit 10.2

                                                                  Execution Copy


                          SPECIAL TERMINATION AGREEMENT


               THIS AGREEMENT is dated as of the 2nd day of November, 1998 by
and among Abington Bancorp, Inc., a Massachusetts corporation (the "Company"),
its subsidiary, Abington Savings Bank, a Massachusetts savings bank with its
main office in Abington, Massachusetts (the "Bank"; the Company and Bank are
sometimes collectively referred to herein as the "Employers"), and Kevin M.
Tierney, an individual currently employed by the Bank in the capacity of
Executive Vice President, Operations (the "Executive").

               1. Purpose. In order to allow the Executive to consider the
prospect of a Change in Control (as defined in Section 2) in an objective manner
and in consideration of the services rendered and to be rendered by the
Executive to the Employers, and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged by the Employers, the
Employers are willing to provide, subject to the terms of this Agreement,
certain severance benefits to protect the Executive from the consequences of a
Terminating Event (as defined in Section 3) occurring subsequent to a Change in
Control.

               2. Change in Control. A "Change in Control" shall be deemed to
have occurred in any of the following events:

               (i) if there has occurred a change in control which the Company
would be required to report in response to Item 1 of Form 8-K promulgated under
the Securities Exchange Act of 1934, as amended (the "1934 Act"), or, if such
Form is no longer in effect in its present form, any Form or regulation
promulgated by the Securities and Exchange Commission pursuant to the 1934 Act
which is intended to serve similar purposes; or

               (ii) when any "person" (as such term is used in Sections 13(d)
and 14(d)(2) of the 1934 Act) becomes a "beneficial owner" (as such term is
defined in Rule 13d-3 promulgated under the 1934 Act), directly or indirectly,
of securities of the Company or the Bank representing twenty-five percent (25%)
or more of the total number of votes that may be cast for the election of
directors of the Company or the Bank; or

               (iii) if during any period of two consecutive years (not
including any period prior to the execution of this Agreement), individuals who
are Continuing Directors (as herein defined) cease for any reason to constitute
at least a majority of the Board of Directors of the Company. For this purpose,
a "Continuing Director" shall mean (a) an individual who was a director of the
Company at the beginning of such period or (b) any new director (other than a
director designated by a person who has entered into any agreement with the
Company to effect a transaction described in clause (i) or (ii) of this Section
2 whose election by the Board or nomination for election by the Company's
stockholders was approved by a vote of at least two-thirds (2/3) of the
directors then still in office who either were directors at the beginning


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of such period or whose election or nomination for election was previously so
approved; or

               (iv) the stockholders of the Company approve a merger or
consolidation of the Company with any other bank or corporation, other than (a)
a merger or consolidation which would result in the voting securities of the
Company outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity) more than 80% of the combined voting power of the voting
securities of the Company or such surviving entity outstanding immediately after
such merger or consolidation, or (b) a merger or consolidation effected to
implement a recapitalization of the Company (or similar transaction) in which no
"person" (as defined above) acquires more than 30% of the combined voting power
of the Company's then outstanding securities; or

               (v) the stockholders of the Company approve a plan of complete
liquidation of the Company or an agreement for the sale or disposition by the
Company of all or substantially all of its assets.

               3. Terminating Event. A "Terminating Event" shall mean either of
the following:

               (a) termination by either of the Employers of the employment of
the Executive as Executive Vice President of the Bank for any reason other than
(i) death, (ii) deliberate dishonesty of the Executive with respect to the
Company or the Bank or any subsidiary or affiliate thereof, or (iii) conviction
of the Executive of a crime involving moral turpitude, or

               (b) resignation of the Executive from the employ of the Company
or the Bank, while the Executive is not receiving payments or benefits from the
Company or the Bank by reason of the Executive's disability, subsequent to the
occurrence of any of the following events:

                    (i) a significant change in the nature or scope of the
            Executive's responsibilities, authorities, powers, functions or
            duties from the responsibilities, authorities, powers, functions or
            duties exercised by the Executive at the Company or the Bank
            immediately prior to the Change in Control; or

                    (ii) a reasonable determination by the Executive that, as a
            result of a Change in Control, he is unable to exercise the
            responsibilities, authorities, powers, functions or duties exercised
            by the Executive at the Company or the Bank immediately prior to
            such Change in Control; or

                    (iii) a decrease in the total annual compensation payable by
            the Company or the Bank to the Executive other than as a result of a
            salary reduction similarly affecting the Executive and all other
            executive officers of the Company or the Bank on the basis of the
            Company's or the Bank's financial performance; or

                    (iv) the failure by the Company or the Bank to continue
            in effect any material compensation, incentive, bonus or benefit
            plan in which the Executive participates immediately prior to the
            Change in Control, unless an equitable arrangement (embodied

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            in an ongoing substitute or alternative plan) has been made with
            respect to such plan, or the failure by the Company or the Bank to
            continue the Executive's participation therein (or in such
            substitute or alternative plan) on a basis not materially less
            favorable, both in terms of the amount of benefits provided and the
            level of the Executive's participation relative to other
            participants, than the basis when existed at the time of the Change
            of Control; or

                    (v) the failure of the Company or the Bank to obtain a
            satisfactory agreement from any successor to assume and agree to
            perform this Agreement.

               4. Severance Payment. In the event a Terminating Event occurs
within three (3) years after a Change in Control, the Employers shall pay to the
Executive an amount equal to (x) three times the "base amount" (as defined in
Section 280G(b)(3) of the Internal Revenue Code of 1986, as amended (the
"Code")) applicable to the Executive, less (y) One Dollar ($1.00), payable in
one lump-sum payment on the date of termination.

               5. Limitation on Benefits.

               (a) It is the intention of the Executive and of the Employers
that no payments by the Employers to or for the benefit of the Executive under
this Agreement or any other agreement or plan pursuant to which he is entitled
to receive payments or benefits shall be non-deductible to the Employers by
reason of the operation of Section 280G of the Code relating to parachute
payments. Accordingly, and notwithstanding any other provision of this Agreement
or any such agreement or plan, if by reason of the operation of said Section
280G, any such payments exceed the amount which can be deducted by the
Employers, such payments shall be reduced to the maximum amount which can be
deducted by the Employers. To the extent that payments exceeding such maximum
deductible amount have been made to or for the benefit of the Executive, such
excess payments shall be refunded to the Employers with interest thereon at the
applicable Federal Rate determined under Section 1274(d) of the Code, compounded
annually, or at such other rate as may be required in order that no such
payments shall be non-deductible to the Employers by reason of the operation of
said Section 280G. To the extent that there is more than one method of reducing
the payments to bring them within the limitations of said Section 280G, the
Executive shall determine which method shall be followed, provided that if the
Executive fails to make such determination within forty-five days after the
Employers have sent him written notice of the need for such reduction, the
Employers may determine the method of such reduction in their sole discretion.

               (b) If any dispute between the Employers and the Executive as to
any of the amounts to be determined under this Section 5 or the method of
calculating such amounts cannot be resolved by the Employers and the Executive,
either party after giving three days written notice to the other, may refer the
dispute to a partner in a Massachusetts office of a firm of independent
certified public accountants selected jointly by the Employers and the
Executive. The determination of such partner as to the amounts to be determined
under Section 5(a) and the method of calculating such amounts shall be final and
binding on both the Employers and the Executive. The Employers shall bear the
costs of any such determination.

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               (c) The Executive confirms that he is aware of the fact that the
Federal Deposit Insurance Corporation has the power to preclude the Bank from
making payments to the Executive under this Agreement under certain
circumstances. The Executive agrees that the Bank shall not be deemed to be in
breach of this Agreement if it is precluded from making a payment otherwise
payable hereunder by reason of regulatory requirements binding on the Bank.

               6. Employment Status. This Agreement is not an agreement for the
employment of the Executive and shall confer no rights on the Executive except
as herein expressly provided.

               7. Term. This Agreement shall take effect on the date first
written above, and shall terminate upon the earlier of (a) the termination by
the Employers of the employment of the Executive because of death, deliberate
dishonesty of the Executive with respect to the Company or the Bank or any
subsidiary or affiliate thereof, or conviction of the Executive of a crime
involving moral turpitude, (b) the resignation or termination of employment with
the Company or the Bank by the Executive for any reason prior to a Change in
Control, or (c) the resignation from employment of the Executive after a Change
in Control for any reason other than the occurrence of any of the events
enumerated in Section 3(b) of this Agreement.

               8. Withholding. All payments made by the Employers under this
Agreement shall be paid net of, and after deduction of, any tax or other amounts
required to be withheld by the Employers under applicable law.

               9. Assignment. Neither the Employers nor the Executive may make
any assignment of this Agreement or any interest herein, by operation of law or
otherwise, without the prior written consent of the other party. This Agreement
shall inure to the benefit of, and be binding upon, the Employers and the
Executive, and their respective heirs, legal representatives, successors and
permitted assigns. In the event of the Executive's death prior to the completion
by the Employers of all payments due him under this Agreement, the Employers
shall continue such payments to the Executive's beneficiary designated in
writing to the Employers prior to his death (or to his estate, if he fails to
make such designation).

               10. Enforceability. If any portion or provision of this Agreement
shall to any extent be declared illegal or unenforceable by a court of competent
jurisdiction, then the remainder of this Agreement, or the application of such
portion or provision in circumstances other than those as to which it is so
declared illegal or unenforceable, shall not be affected thereby, and each
portion and provision of this Agreement shall be valid and enforceable to the
fullest extent permitted by law.

               11. Waiver. No waiver of any provision hereof shall be effective
unless made in writing and signed by the waiving party. The failure of either
party to require the performance of any term or obligation of this Agreement, or
the waiver by either party of any breach of this Agreement, shall not prevent
any subsequent enforcement of such term or obligation or be deemed a waiver of
any subsequent breach.

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               12. Notices. Any notices, requests, demands and other
communications provided for by this Agreement shall be sufficient if in writing
and delivered in person or sent by registered or certified mail, postage
prepaid, to the Executive at 12 Hussey Ave., Danvers, Massachusetts 01923, or to
such other address as the Executive has filed in writing with the Employers or,
in the case of the Employers, at their main office, attention of the Clerk or
the Secretary.

               13. Effect on Other Agreements. An election by the Executive to
resign after a Change in Control under the provisions of this Agreement shall
not constitute a breach by the Executive of any employment agreement between the
Employers and the Executive and shall not be deemed a voluntary termination of
employment by the Executive for the purpose of interpreting the provisions of
any of the Employer's benefit plans, programs or policies. Nothing in this
Agreement shall be construed to limit the rights of the Executive under any
employment agreement he may then have with the Employers.

               13. Amendment. This Agreement may be amended or modified only by
a written instrument signed by the Executive and by a duly authorized
representative of the Executive Committee of the Board of Directors of each of
the Employers.

               14. Governing Law. This Agreement shall be governed by, and
construed and enforced in accordance with, the substantive laws of The
Commonwealth of Massachusetts without regard for its principles of conflicts of
laws.

                                     * * * *


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            IN WITNESS WHEREOF, this Agreement has been executed as a sealed
instrument by the Bank, by its duly authorized officer, and by the Executive, as
of the date first above written.

ATTEST:                                        ABINGTON BANCORP, INC.


-------------------------------                By:
         Clerk                                    -----------------------------

                                               Title:
                                                     --------------------------

[Seal]

WITNESS:

ATTEST:                                        ABINGTON SAVINGS BANK


-------------------------------                By:
         Clerk                                    -----------------------------

                                               Title:
                                                     --------------------------

[Seal]

WITNESS:


-------------------------------                --------------------------------
                                               Kevin M. Tierney



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