EXHIBIT 10.1


 


AGREEMENT


 


AGREEMENT,
dated as of May 1, 2004, between Willow Grove Bancorp, Inc. (the
“Corporation”), a Pennsylvania corporation, and Frederick A. Marcell Jr. (the
“Executive”).


 


WITNESSETH


 


WHEREAS, the
Executive is presently an officer of the Corporation and Willow Grove Bank (the
“Bank”) (together, the “Employers”);


 


WHEREAS, the
Employers desire to be ensured of the Executive’s continued active
participation in the business of the Employers;


 


WHEREAS, the
Corporation and the Bank desire to enter into separate agreements with the
Executive with respect to his employment by each of the Employers; and


 


WHEREAS, in
order to induce the Executive to remain in the employ of the Employers and in
consideration of the Executive’s agreeing to remain in the employ of the
Employers, the parties desire to specify the severance benefits which shall be
due the Executive by the Corporation in the event that his employment with the
Corporation is terminated under specified circumstances;


 


NOW THEREFORE,
in consideration of the mutual agreements herein contained, and upon the other
terms and conditions hereinafter provided, the parties hereby agree as follows:


 


1.                                      Definitions.  The following words and terms shall have the
meanings set forth below for the purposes of this Agreement:


 


(a)                                  Average Annual Compensation.  The Executive’s “Average Annual
Compensation” for purposes of this Agreement shall be deemed to mean the
average amount of the Base Salary and cash bonus paid to the Executive by the
Employers or any subsidiary thereof during the most recent five calendar years
preceding the Date of Termination.


 


(b)                                 Base Salary.  “Base Salary” shall have the meaning set forth in Section 3(a)
hereof.


 


(c)                                  Cause. Termination of the Executive’s
employment for “Cause” shall mean termination because of personal dishonesty,
incompetence, willful misconduct, breach of fiduciary duty involving personal
profit, intentional failure to perform stated duties, willful violation of any
law, rule or regulation (other than traffic violations or similar offenses) or
final cease-and-desist order, willful conduct which is materially detrimental
(monetarily or otherwise) to the Employers or material breach of any provision
of this Agreement.


 


(d)                                 Change in Control of the Corporation.  “Change in Control of the Corporation” shall
mean the occurrence of any of the following: 
(i) the acquisition of control of the Corporation as defined in 12
C.F.R. §574.4, unless a presumption of control is successfully rebutted or
unless the transaction is exempted by 12 C.F.R. §574.3(c)(vii), or any
successor to such sections; (ii) an event that would be required to be
reported in response to Item 1(a) of Form 8-K or Item 6(e) of Schedule 14A of
Regulation 14A pursuant to the Securities Exchange Act of 1934, as amended
(“Exchange Act”), or any successor thereto, whether or not any class of
securities of the Corporation is registered under the Exchange Act; (iii) any
“person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act)
is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Corporation
representing 20% or more of the combined voting power of the Corporation’s then
outstanding securities; or (iv) during any period of three consecutive years,
individuals who at the beginning of such period constitute the Board of
Directors of the Corporation cease for any reason to


 


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constitute at least a majority thereof unless the election, or the
nomination for election by stockholders, of each new director was approved by a
vote of at least two-thirds of the directors then still in office who were
directors at the beginning of the period.


 


(e)                                  Code. 
“Code” shall mean the Internal Revenue Code of 1986, as amended.


 


(f)                                    Date of Termination.  “Date of Termination” shall mean (i) if the
Executive’s employment is terminated for Cause or for Disability, the date
specified in the Notice of Termination, and (ii) if the Executive’s employment
is terminated for any other reason, the date on which a Notice of Termination
is given or as specified in such Notice.


 


(g)                                 Disability.  Termination by the Corporation of the Executive’s employment
based on “Disability” shall mean termination because of any physical or mental
impairment which qualifies the Executive for disability benefits under the
applicable long-term disability plan maintained by the Employers or any
subsidiary or, if no such plan applies, which would qualify the Executive for
disability benefits under the Federal Social Security System.


 


(h)                                 Good Reason.  Termination by the Executive of the Executive’s employment for
“Good Reason” shall mean termination by the Executive within twenty-four (24)
months following a Change in Control of the Corporation based on:


 


(i)                                     Without
the Executive’s express written consent, the failure to elect or to re-elect or
to appoint or to re-appoint the Executive to the offices of President and Chief
Executive Officer of the Employers or a material adverse change made by the
Employers in the Executive’s functions, duties or responsibilities as President
and Chief Executive Officer of the Employers;


 


(ii)                                  Without
the Executive’s express written consent, a reduction by either of the Employers
in the Executive’s Base Salary as the same may be increased from time to time
or, except to the extent permitted by Section 3(b) hereof, a reduction in the
package of fringe benefits provided to the Executive, taken as a whole;


 


(iii)                               The
principal executive office of either of the Employers is relocated outside of
the Maple Glen, Pennsylvania area or, without the Executive’s express written
consent, either of the Employers require the Executive to be based anywhere
other than an area in which the Employers’ principal executive office is
located, except for required travel on business of the Employers to an extent
substantially consistent with the Executive’s present business travel
obligations;


 


(iv)                              Any
purported termination of the Executive’s employment for Disability or
Retirement which is not effected pursuant to a Notice of Termination satisfying
the requirements of paragraph (j) below; or


 


(v)                                 The
failure by the Corporation to obtain the assumption of and agreement to perform
this Agreement by any successor as contemplated in Section 9 hereof.


 


(i)                                     IRS. 
IRS shall mean the Internal Revenue Service.


 


(j)                                     Notice of Termination.  Any purported termination of the Executive’s
employment by the Corporation for any reason, including without limitation for
Cause, Disability or Retirement, or by the Executive for any reason, including
without limitation for Good Reason, shall be communicated by written “Notice of
Termination” to the other party hereto. 
For purposes of this Agreement, a “Notice of Termination” shall mean a
dated notice which (i) indicates the specific termination provision in this
Agreement relied upon, (ii) sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive’s
employment under the provision so indicated, (iii) specifies a Date of
Termination, which shall be not less than thirty (30) nor more than ninety (90)
days after such Notice of Termination is given, except in the case of the


 


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Corporation’s termination of the Executive’s employment for Cause,
which shall be effective immediately; and (iv) is given in the manner specified
in Section 10 hereof.


 


(k)                                  Retirement.  “Retirement” shall mean voluntary termination by the Executive in
accordance with the Employers’ retirement policies, including early retirement,
generally applicable to their salaried employees.


 


2.                                      Term
of Employment.


 


(a)                                  The
Corporation hereby employs the Executive as President and Chief Executive
Officer and the Executive hereby accepts said employment and agrees to render
such services to the Corporation on the terms and conditions set forth in this
Agreement.  The term of employment under
this Agreement shall be for two years, commencing on the date of this Agreement
and, upon approval of the Board of Directors of the Corporation, shall extend
for an additional year on each annual anniversary of the date of this Agreement
such that at any time the remaining term of this Agreement shall be from one to
two years in the absence of notice to the contrary.  Prior to the first annual anniversary of the date of this
Agreement and each annual anniversary thereafter, the Board of Directors of the
Corporation shall consider and review (after taking into account all relevant
factors, including the Executive’s performance hereunder) an extension of the
term of this Agreement, and the term shall continue to extend each year if the
Board of Directors approves such extension unless the Executive gives written
notice to the Employers of the Executive’s election not to extend the term,
with such written notice to be given not less than thirty (30) days prior to
any such anniversary date. If the Board of Directors elects not to extend the
term, it shall give written notice of such decision to the Executive not less
than thirty (30) days prior to any such anniversary date.  If any party gives timely notice that the
term will not be extended as of any annual anniversary date, then this
Agreement shall terminate at the conclusion of its remaining term.  References herein to the term of this
Agreement shall refer both to the initial term and successive terms.


 


(b)                                 During
the term of this Agreement, the Executive shall perform such executive services
for the Corporation as may be consistent with his titles and from time to time
assigned to him by the Corporation’s Board of Directors.


 


3.                                      Compensation
and Benefits.


 


(a)                                  The Employers shall
compensate and pay the Executive for his services during the term of this
Agreement at a minimum base salary of $244,800 per year (“Base Salary”), which
may be increased from time to time in such amounts as may be determined by the
Boards of Directors of the Employers and may not be decreased without the
Executive’s express written consent.  In
addition to his Base Salary, the Executive shall be entitled to receive during
the term of this Agreement such bonus payments as may be determined by the
Boards of Directors of the Employers.


 


(b)                                 During
the term of this Agreement, the Executive shall be entitled to participate in and
receive the benefits of any pension or other retirement benefit plan, profit
sharing, stock option, employee stock ownership, or other plans, benefits and
privileges given to employees and executives of the Employers, to the extent
commensurate with his then duties and responsibilities, as fixed by the Boards
of Directors of the Employers.  The
Corporation shall not make any changes in such plans, benefits or privileges
which would adversely affect the Executive’s rights or benefits thereunder,
unless such change occurs pursuant to a program applicable to all executive
officers of the Corporation and does not result in a proportionately greater
adverse change in the rights of or benefits to the Executive as compared with
any other executive officer of the Corporation.  Nothing paid to the Executive under any plan or arrangement
presently in effect or made available in the future shall be deemed to be in
lieu of the salary payable to the Executive pursuant to Section 3(a) hereof.


 


(c)                                  During
the term of this Agreement, the Executive shall be entitled to paid annual
vacation in accordance with the policies as established from time to time by
the Boards of Directors of the Employers. 
The Executive shall not be entitled to receive any additional
compensation from the Employers for failure to take a vacation, nor shall the
Executive be able to accumulate unused vacation time from one year to the next,
except to the extent authorized by the Boards of Directors of the Employers.


 


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(d)                                 In
the event the Executive’s employment is terminated due to Disability or
Retirement, the Employers shall provide continued life, medical and dental
coverage substantially identical to the coverage maintained by the Employers
for the Executive immediately prior to his termination.  Such coverage shall cease upon the
expiration of the otherwise remaining term of this Agreement but for such
Disability or Retirement and thereafter shall continue if, and to the extent,
provided by the Employers’ policies in existence at such time.


 


(e)                                  In
the event of the Executive’s death during the term of this Agreement, the
Employers shall provide to the Executive’s spouse for the remaining term of
this agreement continued medical and dental coverage substantially identical to
the coverage maintained by the Employers for the Executive immediately prior to
his death.


 


(f)                                    The
Executive’s compensation, benefits and expenses shall be paid by the
Corporation and the Bank in the same proportion as the time and services
actually expended by the Executive on behalf of each respective Employer.


 


(g)                                 During
the term of this Agreement, the Executive will be entitled to participate in
the supplemental executive retirement plan of the Employers established for the
Executive’s benefit in July 1998.


 


4.                                      Expenses.  The Employers shall reimburse the Executive
or otherwise provide for or pay for all reasonable expenses incurred by the
Executive in furtherance of or in connection with the business of the
Employers, including, but not by way of limitation, automobile expenses and
other traveling expenses, and all reasonable entertainment expenses (whether
incurred at the Executive’s residence, while traveling or otherwise), subject
to such reasonable documentation and other limitations as may be established by
the Boards of Directors of the Employers. 
If such expenses are paid in the first instance by the Executive, the
Employers shall reimburse the Executive therefor.


 


5.                                      Termination.


 


(a)                                  The
Corporation shall have the right, at any time upon prior Notice of Termination,
to terminate the Executive’s employment hereunder for any reason, including
without limitation termination for Cause, Disability or Retirement, and the
Executive shall have the right, upon prior Notice of Termination, to terminate
his employment hereunder for any reason.


 


(b)                                 In
the event that (i) the Executive’s employment is terminated by the Corporation
for Cause or (ii) the Executive terminates his employment hereunder other than
for Disability, Retirement, death or Good Reason, the Executive shall have no
right pursuant to this Agreement to compensation or other benefits for any
period after the applicable Date of Termination.


 


(c)                                  In
the event that the Executive’s employment is terminated as a result of
Disability, Retirement or the Executive’s death during the term of this
Agreement, the Executive shall have no right pursuant to this Agreement to
compensation or other benefits for any period after the applicable Date of
Termination, except as provided for in Sections 3(d) and 3(e) hereof.


 


(d)                                 In
the event that (i) the Executive’s employment is terminated by the Corporation
for other than Cause, Disability, Retirement or the Executive’s death or (ii)
such employment is terminated by the Executive due to a material breach of this
Agreement by the Corporation, which breach has not been cured within fifteen
(15) days after a written notice of non-compliance has been given by the
Executive to the Employers, then the Employers shall pay to the Executive an amount
equal to the Executive’s then current Base Salary for the period of time of the
otherwise remaining term of this Agreement when and as such amount would be
payable under the terms of this Agreement as if the Executive continued to be
an employee pursuant to the terms hereof; provided, however, that this Section
5(d) shall not be applicable if the termination of employment occurs
concurrently with or subsequent to a Change in Control of the Corporation.


 


(e)                                  In
the event that (i) the Executive’s employment is terminated concurrently with
or subsequent to a Change in Control of the Corporation for other than Cause,
Disability, Retirement or the Executive’s death or (ii) the Executive elects to
terminate his employment for Good Reason, then the Corporation shall


 


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(A)                              pay
to the Executive, in either thirty-six (36) equal monthly installments
beginning with the first business day of the month following the Date of
Termination or in a lump sum within five business days of the Date of
Termination (at the Executive’s election), a cash severance amount equal to
three (3) times the Executive’s Average Annual Compensation,


 


(B)                                maintain
and provide for a period ending at the earlier of (i) two years subsequent to the
Date of Termination or (ii) the date of the Executive’s full-time employment by
another employer (provided that the Executive is entitled under the terms of
such employment to benefits substantially similar to those described in this
subparagraph (B)), at no cost to the Executive, the Executive’s continued
participation in all group insurance, life insurance, health and accident
insurance, disability insurance and other employee benefit plans, programs and
arrangements offered by the Employers in which the Executive was entitled to
participate immediately prior to the Date of Termination (excluding
(x) stock option and restricted stock plans of the Employers,
(y) bonuses and other items of cash compensation included in Average
Annual Compensation, and (z) other benefits, or portions thereof, included
in Average Annual Compensation), provided that in the event that the
Executive’s participation in any plan, program or arrangement as provided in
this subparagraph (B) is barred, or during such period any such plan, program
or arrangement is discontinued or the benefits thereunder are materially
reduced, the Corporation shall arrange to provide the Executive with benefits
substantially similar to those which the Executive was entitled to receive
under such plans, programs and arrangements immediately prior to the Date of
Termination, and


 


(C)                                provided
that notwithstanding the forgoing, any payments or benefits provided by the
Bank pursuant to Section 5(e)(A) and (B) of the Executive’s employment
agreement with the Bank of even date (the “Bank Agreement”), as reduced by
Section 6 of the Bank Agreement, shall be subtracted from the payments or
benefits to be provided by the Corporation pursuant to this Section 5(e).


 


6.                                      Payment
of Additional Benefits under Certain Circumstances.


 


(a)                                  If
the payments and benefits pursuant to Section 5 hereof, either alone or
together with other payments and benefits which the Executive has the right to
receive from the Employers (including, without limitation, the payments and
benefits which the Executive would have the right to receive from the Bank
pursuant to Section 5 of the Bank Agreement) would constitute a “parachute
payment” as defined in Section 280G(b)(2) of the Code (the “Initial Parachute
Payment”) then the Corporation shall pay to the Executive, in thirty-six (36)
equal monthly installments beginning with the first business day of the month
following the Date of Termination or in a lump sum within five business days of
the Date of Termination (at the Executive’s election), a cash amount equal to
the sum of the following:


 


(A)                              twenty
(20) percent (or such other percentage equal to the tax rate imposed by Section
4999 of the Code) of the amount by which the Initial Parachute Payment exceeds
the Executive’s “base amount” from the Employers, as defined in Section
280G(b)(3) of the Code, with the difference between the Initial Parachute
Payment and the Executive’s base amount being hereinafter referred to as the
“Initial Excess Parachute Payment”;


 


(B)                                such
additional amount (tax allowance) as may be necessary to compensate the
Executive for the payment by the Executive of state and federal income and
excise and other taxes on the payment provided under clause (A) above and on
any payments under this clause (B).  In
computing such tax allowance, the payment to be made under clause (A) above
shall be multiplied by the “gross up percentage” (“GUP”).  The GUP shall be determined as follows:


 




	
  GUP =

  	
   

  	
    Tax
  Rate

  	
   

  
	
   

  	
   

  	
    1-
  Tax Rate

  






 


The Tax Rate
for purposes of computing the GUP shall be the highest marginal federal and
state income and employment-related tax rate (including Social Security and
Medicare taxes), including any applicable excise tax rate, applicable to the
Executive in the year in which the payment under clause (B) above is made, and
shall also reflect the phase-out of deductions and the ability to deduct
certain of such taxes.


 


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(b)                                 Notwithstanding
the foregoing, if it shall subsequently be determined in a final judicial determination
or a final administrative settlement to which the Executive is a party that the
actual excess parachute payment as defined in Section 280G(b)(1) of the Code is
different from the Initial Excess Parachute Payment (such different amount
being hereafter referred to as the “Determinative Excess Parachute Payment”),
then the Corporation’s independent tax counsel or accountants shall determine
the amount (the “Adjustment Amount”) which either the Executive must pay to the
Corporation or the Corporation must pay to the Executive in order to put the
Executive (or the Corporation, as the case may be) in the same position the
Executive (or the Corporation, as the case may be) would have been if the
Initial Excess Parachute Payment had been equal to the Determinative Excess
Parachute Payment.  In determining the
Adjustment Amount, the independent tax counsel or accountants shall take into
account any and all taxes (including any penalties and interest) paid by or for
the Executive or refunded to the Executive or for the Executive’s benefit.  As soon as practicable after the Adjustment
Amount has been so determined, the Corporation shall pay the Adjustment Amount
to the Executive or the Executive shall repay the Adjustment Amount to the
Corporation, as the case may be.


 


(c)                                  In
each calendar year that the Executive receives payments of benefits under this
Section 6, the Executive shall report on his state and federal income tax
returns such information as is consistent with the determination made by the
independent tax counsel or accountants of the Corporation as described
above.  The Corporation shall indemnify
and hold the Executive harmless from any and all losses, costs and expenses
(including without limitation, reasonable attorneys’ fees, interest, fines and penalties)
which the Executive incurs as a result of so reporting such information.  The Executive shall promptly notify the
Corporation in writing whenever the Executive receives notice of the
institution of a judicial or administrative proceeding, formal or informal, in
which the federal tax treatment under Section 4999 of the Code of any amount
paid or payable under this Section 6 is being reviewed or is in
dispute.  The Corporation shall assume
control at its expense over all legal and accounting matters pertaining to such
federal tax treatment (except to the extent necessary or appropriate for the
Executive to resolve any such proceeding with respect to any matter unrelated
to amounts paid or payable pursuant to this Section 6) and the Executive shall
cooperate fully with the Corporation in any such proceeding.  The Executive shall not enter into any
compromise or settlement or otherwise prejudice any rights the Corporation may
have in connection therewith without the prior consent of the Corporation.


 


7.                                      Mitigation;
Exclusivity of Benefits.


 


(a)                                  The
Executive shall not be required to mitigate the amount of any benefits
hereunder by seeking other employment or otherwise, nor shall the amount of any
such benefits be reduced by any compensation earned by the Executive as a
result of employment by another employer after the Date of Termination or
otherwise, except as set forth in Section 5(e)(B)(ii) hereof.


 


(b)                                 The
specific arrangements referred to herein are not intended to exclude any other
benefits which may be available to the Executive upon a termination of
employment with the Employers pursuant to employee benefit plans of the
Employers or otherwise.


 


8.                                      Withholding.  All payments required to be made by the
Corporation hereunder to the Executive shall be subject to the withholding of
such amounts, if any, relating to tax and other payroll deductions as the
Corporation may reasonably determine should be withheld pursuant to any
applicable law or regulation.


 


9.                                      Assignability.  The Corporation may assign this Agreement
and its rights and obligations hereunder in whole, but not in part, to any
corporation, bank or other entity with or into which the Corporation may
hereafter merge or consolidate or to which the Corporation may transfer all or
substantially all of its assets, if in any such case said corporation, bank or
other entity shall by operation of law or expressly in writing assume all
obligations of the Corporation hereunder as fully as if it had been originally
made a party hereto, but may not otherwise assign this Agreement or its rights
and obligations hereunder.  The
Executive may not assign or transfer this Agreement or any rights or
obligations hereunder.


 


10.                               Notice.  For the purposes of this Agreement, notices
and all other communications provided for in this Agreement shall be in writing
and shall be deemed to have been duly given when delivered or mailed by


 


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certified or registered mail, return receipt requested, postage
prepaid, addressed to the respective addresses set forth below:


 


	
  To the
  Corporation:

  	
   

  	
  Secretary

  
	
   

  	
   

  	
  Willow Grove
  Bancorp, Inc.

  
	
   

  	
   

  	
  Welsh &
  Norristown Roads

  
	
   

  	
   

  	
  Maple Glen,
  Pennsylvania  19002-8030

  
	
   

  	
   

  	
   

  
	
  To the Bank:

  	
   

  	
  Secretary

  
	
   

  	
   

  	
  Willow Grove
  Bank

  
	
   

  	
   

  	
  Welsh &
  Norristown Roads

  
	
   

  	
   

  	
  Maple Glen,
  Pennsylvania  19002-8030

  
	
   

  	
   

  	
   

  
	
  To the
  Executive:

  	
   

  	
  Frederick A.
  Marcell Jr.

  
	
   

  	
   

  	
  1316
  Larchmont Place

  
	
   

  	
   

  	
  Mount
  Laurel, New Jersey 08054

  



 


11.                               Amendment;
Waiver.  No provisions of this
Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in writing and signed by the Executive
and such officer or officers as may be specifically designated by the Board of
Directors of the Corporation to sign on its behalf.  No waiver by any party hereto at any time of any breach by any
other party hereto of, or compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time.


 


12.                               Governing
Law.  The validity, interpretation,
construction and performance of this Agreement shall be governed by the laws of
the United States where applicable and otherwise by the substantive laws of the
Commonwealth of Pennsylvania.


 


13.                               Nature
of Obligations.  Nothing contained
herein shall create or require the Corporation to create a trust of any kind to
fund any benefits which may be payable hereunder, and to the extent that the
Executive acquires a right to receive benefits from the Corporation hereunder,
such right shall be no greater than the right of any unsecured general creditor
of the Corporation.


 


14.                               Headings.  The section headings contained in this
Agreement are for reference purposes only and shall not affect in any way the meaning
or interpretation of this Agreement.


 


15.                               Validity.  The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provisions of this Agreement, which shall remain in full force and
effect.


 


16.                               Counterparts.  This Agreement may be executed in one or
more counterparts, each of which shall be deemed to be an original but all of
which together will constitute one and the same instrument.


 


17.                               Regulatory
Prohibition.  Notwithstanding any
other provision of this Agreement to the contrary, any payments made to the
Executive pursuant to this Agreement, or otherwise, are subject to and
conditioned upon their compliance with Section 18(k) of the Federal Deposit
Insurance Act (12 U.S.C. §1828(k)) and the regulations promulgated thereunder,
including 12 C.F.R. Part 359. In the event of the Executive’s termination of
employment with the Bank for Cause, all employment relationships and managerial
duties with the Bank shall immediately cease regardless of whether the
Executive remains in the employ of the Corporation following such
termination.  Furthermore, following
such termination for Cause, the Executive will not, directly or indirectly,
influence or participate in the affairs or the operations of the Bank.


 


18.                               Payment
of Costs and Legal Fees and Reinstatement of Benefits.  In the event any dispute or controversy
arising under or in connection with the Executive’s termination is resolved in
favor of the Executive, whether by judgment, arbitration or settlement, the
Executive shall be entitled to the payment of (a) all legal fees incurred
by the Executive in resolving such dispute or controversy, and (b) any
back-pay, including Base Salary,


 


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bonuses and any other cash compensation, fringe benefits and any
compensation and benefits due to the Executive under this Agreement.


 


19.                               Indemnification.  The Corporation shall provide the Executive
(including his heirs, executors and administrators) with coverage under a
standard directors’ and officers’ liability insurance policy at its expense and
shall indemnify the Executive (and his heirs, executors and administrators) to
the fullest extent permitted under Pennsylvania law against all expenses and liabilities
reasonably incurred by him in connection with or arising out of any action,
suit or proceeding in which he may be involved by reason of his having been a
director or officer of the Corporation (whether or not he continues to be a
director or officer at the time of incurring such expenses or
liabilities).  Such expenses and
liabilities shall include, but shall not be limited to, judgments, court costs
and attorneys’ fees and the cost of reasonable settlements.


 


20.                               Entire
Agreement.  This Agreement embodies
the entire agreement between the Corporation and the Executive with respect to
the matters agreed to herein.  All prior
agreements between the Corporation and the Executive with respect to the
matters agreed to herein are hereby superseded and shall have no force or
effect.  Notwithstanding the foregoing,
nothing contained in this Agreement shall affect the agreement of even date
being entered into between the Bank and the Executive.


 


 


IN WITNESS
WHEREOF, this Agreement is effective as of the date first above written.


 


	
  Attest:

  	
  WILLOW GROVE BANCORP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   /s/Mary
  R. Rossi

  	
   

  	
  By:

  	
  /s/William
  W. Langan

  	
   

  
	
   

  	
   

  	
   

  	
  William W.
  Langan

  	
   

  
	
   

  	
   

  	
   

  	
  Chairman of
  the Board

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Frederick A. Marcell Jr.

  	
   

  
	
   

  	
   

  	
  Frederick A. Marcell Jr.

  	
   

  
						



 


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