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                                                                    Exhibit 10.7


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                              ABINGTON SAVINGS BANK


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                              LONG TERM PERFORMANCE

                                 INCENTIVE PLAN



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                      LONG TERM PERFORMANCE INCENTIVE PLAN

PURPOSE:

To incent Executive Management and members of the Board of Directors to build
long-term shareholder value. Specifically, to encourage focus on the price of
the company's stock.

TYPE:

The bank's Long Term Performance Incentive Plan which provides for the granting
of stock options of the bank's Common Stock to Executive Management and members
of the Board of Directors. The program would incorporate Incentive Stock Options
(ISO's) (1) as well as Non-Qualified Stock Options (NSO's) (2) for management
while using NSO's for non-employee directors. The options granted will be based
upon the achievement of the annual business plan.

         (1)      Incentive Stock Options: Options granted pursuant to the plan
                  which qualify under Section 422 of the Internal Revenue Code.
                  The aggregate fair market value (determined as of the date of
                  grant) of stock covered by incentive stock options which
                  become exercisable for the first time in any calendar year may
                  not exceed $100,000. In general, an optionee will not be
                  deemed to receive taxable income upon grant to exercise of an
                  incentive stock option, and any gain realized at the time of
                  sale of shares acquired upon exercise of an incentive stock
                  option will be treated as capital gain, provided that such
                  shares are held by the optionee for at least one year after
                  the date of exercise and two years after the date of grant.
                  ISO's are only available for employees of the Bank.

         (2)      Non-Qualified Stock Options: Options in which an optionee will
                  be deemed to receive taxable income at ordinary income rates
                  upon exercise of a non-qualified stock option in an amount
                  equal to the difference between the exercise price and the
                  fair market value of the Common Stock on the date of exercise.

PARTICIPANTS:

<TABLE>
<CAPTION>
POSITION                                    ANNUAL GRANT (SHARES) *

<S>                                                     <C>
Board of Directors(2000 Each)                           22,000
CEO                                                     10,000
EVP                                                      8,500
Division Head (7000 each)                               21,000
                                                        ------
                                                        61,500

</TABLE>


* In the unlikely event that the number of shares needed to meet the annual
grant are not available options will be granted on a pro-rata basis.


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MECHANICS:

         -        Generally, bank performance of the annual business plan will
                  be determined and options will be granted by the end of
                  February following the plan year end.

         -        The holder shall have the right to exercise the option in
                  whole or in part at any time until the option expires ten
                  years from the grant date.

         -        The exercise price will be a minimum of the fair market value
                  of the day of the grant (February Board of Directors meeting)

         -        The options would become exercisable after a specific stock
                  trading price target is met.

         -        All options become exercisable in full upon a change in
                  control of the company even if the stock price target is not
                  met.

         -        All options with delayed vesting would fully vest at the end
                  of year nine, even if none of the targets are met. This
                  provision is required to avoid unnecessary financial statement
                  charges for compensation.

         -        The options are forfeited in accordance to the terms as
                  outlined in the particular Stock Option Agreement.

EXERCISE OF OPTION:

         -        The options will vest upon grant and be exercisable at the
                  grant price.

         -        The maximum amount of incentive options which can become first
                  exercisable in any one year will be limited to $100,000.,
                  based on the grant price. In the event of a change in control
                  of the company all options in the plan become fully vested and
                  exercisable.


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ADMINISTRATION:

         -        Plan will be administered by the Director of Human Resources
                  under the direction of the Compensation Committee.

         -        Participants who join the organization prior to July first may
                  be eligible to participate in the program with the approval of
                  the Compensation Committee (on a pro-rata basis).

         -        An eligible participant must be an Officer or Board Member of
                  the company at the time the options are awarded in order to
                  receive a grant.

         -        Options granted shall be subject to the conditions as outlined
                  in the particular Stock Option Agreement.

ADDITIONAL GRANTS:

Additional grants may be made for such events as acquisitions, asset purchase,
etc. as these goals are accomplished for incentive purposes.



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