| CONTENTS   |
|----------------------|
| I.                   | PURPOSE | 1  |
| II.                  | GENERAL      DESCRIPTION | 2  |
| III.                 | PLAN      ADMINISTRATION | 3  |
| IV.                  | PLAN      PARTICIPANTS | 5  |
| V.                   | OPERATING      RULES | 6  |
| VI.                  | SUMMARY      OF SUPPLEMENTARY PLAN DOCUMENTS | 9 |

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incentive compensa­tion.

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|   | A. | Chief      Executive Officer                            |
|--------|----|--------------------------------------------------------------|
|   | B. | Executive      Vice President                           |
|   | C. | Senior      Vice President and Chief Financial Officer  |
|   | D. | Senior      Vice President and Operations Manager       |
|   | E. | Senior      Vice President and ITManager                     |

| I. | The      Plan shall be effective as of April 1, 1988. |   |
|----|-------------------------------------------------------|--------|

|   | A. | The      Board of Directors of First Keystone National Bank may amend, suspend, or      terminate the Plan at any time.  |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------|
|   | B. | The      Plan shall be administered by the Human Resource Committee with assistance      from Executive Management.      |

|   | C. | The      Human Resource Committee shall adopt such rules and regulations and shall      make determinations and interpretations of the Plan thereunder as it shall      deem appropriate.  All such rules, regula­tions, and      determinations, as approved by the Board of Directors, shall be conclusive      and binding upon all parties.  |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | D. | Eligibility      for participation in the Plan is based upon the eligi­bility      requirements as stated herein.  |
|--------|----|------------------------------------------------------------------------------------------------------------------------------|

|   | E. | Supplementary      Plan Documents relating to participants, the targeted incentive plan pool,      and other pertinent matters will be prepared by the Committee, and      approved by the Board of Directors, during the first quarter of each Plan      Year.  |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |   |
|--------|--------|--------|

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|   | F. | The      incentive plan pool may be funded, within the discretion of the Board of      Directors, with the following to be used as a general      guide­line:  |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Fund      as a % of Budget                                | %      of Budget Beyond Goal |
|-----------------------------------------------------------|------------------------------|
|                                                      |                         |
| Greater      than 90% of budget up      to 95% of budget  | 5%                           |
|                                                      |                         |
| Greater      than 95% of budget up      to 100% of budget | 10%                          |
|                                                      |                         |
| In      excess of budget                                  | 15%                          |

|   | G. | Allocation      of the plan pool will be made in accordance with the guidelines shown in      Section VI of this Plan document.  As noted in these guidelines,      individual performance standards must be met before an eligible      participant will receive all or part of his/her eligible portion of the      pool.  |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | H. | Within      thirty (30) days following the end of the Plan Year, or as soon as      financial and operating results are known, eligible partici­pants will      receive their appropriate incentive plan payment.  Unless      otherwise determined and approved by the Board of Directors, this payment      will be made in cash.  |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | I. | Basic      Incentive Plan guidelines for any Plan Year shall be reviewed with the      participants at the beginning of each Plan Year.  |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | J. | Partial      payments under the Plan shall be administered as follows:  |
|--------|----|------------------------------------------------------------------------------|

|   | 1. | Retirement:  In      the event of termination of employment through retirement, the employee      may, at the discretion of the Commit­tee, be considered to have earned      one-twelfth (1/12) of the annual incentive compensation award of a      particular year for each month of employment in the Plan Year of his/her      retire­ment.  |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Death:  If      a participant dies, the amount of the award may be prorated for each month      of employment during the Plan Year at the discretion of the Committee, and      paid to the estate or designated beneficiary.  |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 3. | Termination      for Reasons Other Than Death or Retirement:  In the event of      termination of employment for reasons other than death or retirement, the      participant, at the discretion of the Com­mit­tee, will forfeit      all unpaid incentive awards. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | K. | No      right or interest of any participant in the plan shall be assign­able      or transferable, or subject to any lien, directly, by operation of law, or      otherwise, including levy, garnishment, attach­ment, pledge, or      bankruptcy, except to a beneficiary upon the death of a participant as      herein provided.  |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | L. | An      award under the Plan shall not confer any right on the participant to      continue in the employ of the bank, or limit in any way the right of the      bank to terminate the participant's employment at any time.  The      receipt of an award for any one year shall not guarantee an employee the      right to receive an award for any subsequent year.\  |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | M. | The      Bank shall have the right to deduct from all payments under this Plan any      federal or state taxes required by law to be withheld with respect to such      payments.  |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | N. | The      Committee, with concurrence of the Board of Directors, may terminate,      amend, or modify this Plan at anytime. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------|

|   | A. | Allocation      of Incentive Plan Pool |
|--------|----|----------------------------------------|

| Job      Title                                                  | Maximum      % of Pool |
|----------------------------------------------------------------------|------------------------|
| 1.  Chief      Executive Officer                           | 45%               |
| 2.  Executive      Vice President                          | 25%               |
| 3.  Senior      Vice President and Chief Financial Officer | 10%               |
| 4.  Senior      Vice President and Operations Manager      | 10%               |
| 5.  Senior      Vice President and IT Manager              | 10%                    |

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