Document:

exv10w4

Exhibit 10.4

[FORM OF]

STANDARD BANK, PASB

CHANGE IN CONTROL AGREEMENT

     THIS
CHANGE IN CONTROL AGREEMENT (“Agreement”) is entered into as of ___ day of ___,
2010, by and between Standard Bank, PaSB, a Pennsylvania chartered savings bank (the “Bank”),
                     (“Executive”) and Standard Financial Corp., a Maryland corporation and the stock
holding company of the Bank, as guarantor (the “Company”).

     WHEREAS, the Executive is currently an officer of the Bank; and

     WHEREAS, the Bank recognizes the importance of Executive to the Bank’s operations and wishes
to protect his position with the Bank in the event of a change in control of the Bank or the
Company for the period provided for in this Agreement; and

     WHEREAS, Executive and the Boards of Directors of the Bank and the Company desire to enter
into an agreement setting forth the terms and conditions of payments due to Executive in the event
of a change in control and the related rights and obligations of each of the parties.

     NOW, THEREFORE, in consideration of the promises and mutual covenants herein contained, it is
hereby agreed as follows:

	1.	 	Term of Agreement.

     (a) The term of this Agreement shall be deemed to have commenced as of the date written above
and shall continue for a period of twenty-four (24) full calendar months thereafter. Commencing on
the date of the execution of this Agreement, the term of this Agreement shall be extended for one
day each day until such time as the board of directors of the Bank (the “Board”) or Executive
elects not to extend the term of the Agreement by giving written notice to the other party, in
which case the term of this Agreement shall be fixed and shall end on the second anniversary of the
date of such written notice.

     (b) Notwithstanding anything in this Section to the contrary, this Agreement shall terminate
if Executive or the Bank terminates Executive’s employment prior to a Change in Control.

	2.	 	Change in Control.

     (a) Upon the occurrence of a Change in Control of the Bank or the Company followed within
twelve (12) months by the voluntary termination of Executive’s employment for Good Reason, as
defined in Section 2(a) of this Agreement, or if the Bank or Company terminates the Executive’s
employment for a reason other than for Cause, as defined in Section 2(c) of this Agreement, the
provisions of Section 3 of this Agreement shall apply.

     For purposes of this Agreement, “Good Reason” shall mean the occurrence of any of the
following events without the Executive’s consent:

	 	(i)	 	The assignment to Executive of duties that constitute a material diminution of
Executive’s authority, duties, or responsibilities (including reporting requirements)
from the authority, duties, or responsibilities (including reporting requirements) the
Executive held immediately prior to the Change in Control;

 

 

	 	(ii)	 	A material diminution in Executive’s base salary;
	 
	 	(iii)	 	Relocation of Executive to a location outside a radius of twenty-five (25)
miles of the Bank’s Monroeville, Pennsylvania office; or
	 
	 	(iv)	 	Any other action or inaction by the Bank or the Company that constitutes a
material breach of this Agreement;

provided, that within ninety (90) days after the initial existence of such event, the Bank
shall be given notice and an opportunity, not less than thirty (30) days, to effectuate a
cure for such asserted “Good Reason” by Executive. Executive’s resignation hereunder for
Good Reason shall not occur later than ninety (90) days following the initial date on which
the event Executive claims constitutes Good Reason occurred. If the Bank remedies the
condition within such thirty (30) day cure period, then no Good Reason shall be deemed to
exist with respect to such condition.

     (b) For purposes of this Agreement, a “Change in Control” shall be deemed to occur on the
earliest of:

	 	(i)	 	Merger: The Company or the Bank merges into or consolidates with
another corporation, or merges another corporation into the Company or the Bank, and as
a result less than a majority of the combined voting power of the resulting corporation
immediately after the merger or consolidation is held by persons who were stockholders
of the Company or the Bank immediately before the merger or consolidation;
	 
	 	(ii)	 	Acquisition of Significant Share Ownership: The Company files, or is
required to file, a report on Schedule 13D or another form or schedule (other than
Schedule 13G) required under Sections 13(d) or 14(d) of the Securities Exchange Act of
1934, if the schedule discloses that the filing person or persons acting in concert has
or have become the beneficial owner of 25% or more of a class of the Company’s voting
securities, but this clause (b) shall not apply to beneficial ownership of Company
voting shares held in a fiduciary capacity by an entity of which the Company directly
or indirectly beneficially owns 50% or more of its outstanding voting securities;
	 
	 	(iii)	 	Change in Board Composition: During any period of two consecutive
years, individuals who constitute the Bank’s or the Company’s Board of Directors at the
beginning of the two-year period cease for any reason to constitute at least a majority
of the Bank’s or Company’s Board of Directors; provided, however, that for purposes of
this clause (iii), each director who is first elected by the board (or first nominated
by the board for election by the stockholders) by a vote of at least two-thirds (2/3)
of the directors who were directors at the beginning of the two-year period shall be
deemed to have also been a director at the beginning of such period; or
	 
	 	(iv)	 	Sale of Assets: The Company or the Bank sells to a third party all or
substantially all of its assets.

     A Change in Control shall not occur as a result of the conversion of the Bank from mutual to
stock form.

     (c) Executive shall not have the right to receive termination benefits pursuant to Section 3
hereof upon termination for Cause. The term “Cause” shall mean termination because of Executive’s

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personal dishonesty, incompetence, willful misconduct, any breach of fiduciary duty involving
personal profit, intentional failure to perform stated duties, willful violation of any law, rule,
regulation (other than traffic violations or similar offenses), final cease and desist order, or
any material breach of any provision of this Agreement. Executive shall not have the right to
receive compensation or other benefits for any period after termination for Cause.

	3.	 	Termination Benefits.

     (a) If, within one (1) year of a Change in Control, Executive voluntarily terminates
employment for Good Reason (in accordance with Section 2(a) of this Agreement) or if the Bank
involuntarily terminates his employment for a reason other than Cause, Executive shall receive:

	 	(i)	 	a lump sum cash payment equal to two (2) times the Executive’s (i) Base Salary
and (ii) the highest rate of bonus paid to Executive during the three (3) years prior
to termination, subject to applicable withholding taxes, payable in a single lump sum
payment within ten (10) calendar days following Executive’s termination of employment;
and
	 
	 	(ii)	 	the Bank will continue to provide Executive and the Executive’s dependents with
life insurance, non-taxable medical and dental coverage substantially comparable (and
on substantially the same terms and conditions) to the coverage maintained by the Bank
for Executive prior to Executive’s termination of employment. Such coverage shall
cease upon the expiration of twenty-four (24) full calendar months after Executive’s
termination.
	 
	 	(iii)	 	If the Executive is a “Specified Employee,” as defined in Treasury Regulation
1.409A-1(i), then, solely to the extent required to avoid penalties under Section 409A
of the Internal Revenue Code of 1986, as amended (the “Code”), payments under this
Section 3 shall be delayed until the first day of the seventh month following the
Executive’s date of termination.
	 
	 	(iv)	 	For purposes of this Agreement, a “termination of employment” shall mean a
“Separation from Service” as defined in Section 409A of the Code and the regulations
promulgated thereunder, such that the Employer and the Executive reasonably anticipate
that the level of bona fide services the Executive would perform after a termination of
employment would permanently decrease to a level that is less than 50% of the average
level of bona fide services performed (whether as an employee or as an independent
contractor) over the immediately preceding thirty-six (36) month period.

     The Bank shall pay the aggregate sum of these amounts to Executive in a single lump sum
payment (without any mitigation) no later than ten (10) days following Executive’s termination of
employment.

     (b) Notwithstanding the preceding provisions of this Section 3, in no event shall the
aggregate payments or benefits to be made or afforded to Executive under said paragraphs (the
“Termination Benefits”) constitute an “excess parachute payment” under Section 280G of the Code or
any successor thereto, and to avoid such a result, Termination Benefits will be reduced, if
necessary, to an amount (the “Non-Triggering Amount”), the value of which is one dollar ($1.00)
less than an amount equal to three (3) times Executive’s “base amount,” as determined in accordance
with said Section 280G.

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	4.	 	Notice of Termination.

     (a) Any purported termination by the Bank or by Executive shall be communicated by Notice of
Termination to the other party hereto. For purposes of this Agreement, a “Notice of Termination”
shall mean a written notice which shall indicate the specific termination provision in this
Agreement relied upon and shall set forth in detail the facts and circumstances claimed to provide
a basis for termination of Executive’s employment under the provision so indicated.

     (b) “Date of Termination” shall mean the date specified in the Notice of Termination (which,
in the case of a termination for Cause, shall not be less than thirty (30) days from the date such
Notice of Termination is given).

	5.	 	Source of Payments.

     All payments provided in this Agreement shall be timely paid in cash or check from the general
funds of the Bank. The Company, however, unconditionally guarantees payment and provision of all
amounts and benefits due hereunder to Executive and, if such amounts and benefits due from the Bank
are not timely paid or provided by the Bank, such amounts and benefits shall be paid or provided by
the Company.

	6.	 	Effect on Prior Agreements and Existing Benefit Plans.

     This Agreement contains the entire understanding between the parties hereto and supersedes any
prior agreement between the Bank and Executive, except that this Agreement shall not affect or
operate to reduce any benefit or compensation inuring to Executive of a kind elsewhere provided.
No provision of this Agreement shall be interpreted to mean that Executive is subject to receiving
fewer benefits than those available to him without reference to this Agreement. Nothing in this
Agreement shall confer upon Executive the right to continue in the employ of the Bank or shall
impose on the Bank any obligation to employ or retain Executive in its employ for any period.

	7.	 	No Attachment.

     (a) Except as required by law, no right to receive payments under this Agreement shall be
subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge, or
hypothecation or to execution, attachment, levy or similar process or assignment by operation of
law, and any attempt, voluntary or involuntary, to affect any such action shall be null, void and
of no effect.

     (b) This Agreement shall be binding upon, and inure to the benefit of, Executive, the Bank and
their respective successors and assigns.

	8.	 	Modification and Waiver.

     (a) This Agreement may not be modified or amended except by an instrument in writing signed by
the parties hereto.

     (b) No term or condition of this Agreement shall be deemed to have been waived, nor shall
there be any estoppel against the enforcement of any provision of this Agreement, except by written
instrument of the party charged with such waiver or estoppel. No such written waiver shall be
deemed a continuing waiver unless specifically stated therein, and each such waiver shall operate
only as to the specific term or condition waived and shall not constitute a waiver of such term or
condition for the future or as to any act other than that specifically waived.

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	9.	 	Severability.

     If, for any reason, any provision of this Agreement, or any part of any provision, is held
invalid, such invalidity shall not affect any other provision of this Agreement or any part of such
provision not held so invalid, and each such other provision and part thereof shall to the full
extent consistent with law continue in full force and effect.

	10.	 	Headings for Reference Only.

     The headings of sections and paragraphs herein are included solely for convenience of
reference and shall not control the meaning or interpretation of any of the provisions of this
Agreement. In addition, references herein to the masculine shall apply to both the masculine and
the feminine.

	11.	 	Governing Law.

     Except to the extent preempted by federal law, the validity, interpretation, performance and
enforcement of this Agreement shall be governed by the laws of the Commonwealth of Pennsylvania,
without regard to principles of conflicts of law of the Commonwealth of Pennsylvania.

	12.	 	Arbitration.

     Any dispute or controversy arising under or in connection with this Agreement shall be settled
exclusively by arbitration, conducted before a panel of three arbitrators sitting in a location
selected by Executive within fifty (50) miles from the location of the Bank, in accordance with the
rules of the American Arbitration Association then in effect. Judgment may be entered on the
arbitrator’s award in any court having jurisdiction; provided, however, that Executive shall be
entitled to seek specific performance of his right to be paid until the Date of Termination during
the pendency of any dispute or controversy arising under or in connection with this Agreement.

	13.	 	Payment of Legal Fees.

     All reasonable legal fees paid or incurred by Executive pursuant to any dispute or question of
interpretation relating to this Agreement shall be paid or reimbursed by the Bank, only if
Executive is successful pursuant to a legal judgment, arbitration or settlement, and such payment
shall occur no later than sixty (60) days after the end of the year in which the dispute is settled
or resolved in Executive’s favor, and such reimbursement shall occur no later than sixty (60) days
after the end of the year in which the dispute is settled or resolved in Executive’s favor.

	14.	 	Successors to the Bank and the Company.

     The Bank and the Company shall require any successor or assignee, whether direct or indirect,
by purchase, merger, consolidation or otherwise, to all or substantially all of the business or
assets of the Bank or the Company, expressly and unconditionally to assume and agree to perform the
Bank’s and the Company’s obligations under this Agreement, in the same manner and to the same
extent that the Bank and the Company would be required to perform if no such succession or
assignment had taken place.

	15.	 	Miscellaneous.

     Any payment made pursuant to this Agreement, or otherwise, is subject to and conditioned upon
their compliance with 12 U.S.C. Section 1828(k) and FDIC regulation 12 C.F.R. Part 359, Golden
Parachute and Indemnification Payments.

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     IN WITNESS WHEREOF, the parties have executed this Agreement on the date first written above.

	 	 	 	 	 
	 	STANDARD FINANCIAL CORP.

(Guarantor)

 	 
	 	By:  	 	 
	 	 	For the Entire Board of Directors 	 
	 	 	 	 
	 
	 	STANDARD BANK, PASB

 	 
	 	By:  	 	 
	 	 	For the Entire Board of Directors 	 
	 	 	 	 
	 
	 	EXECUTIVE

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 

6exv10w5

Exhibit 10.5

STANDARD BANK, PaSB

PHANTOM STOCK APPRECIATION RIGHTS AGREEMENT

     THIS AGREEMENT is made this                      day of                                 , 2002
, by and between STANDARD
BANK, PaSB located in Murrysville, Pennsylvania (the
“Company”), and                      (the
“Officer”).

INTRODUCTION

     To encourage the Officer to remain employed with the Company and to provide the Officer with
an incentive benefit, the Company is willing to provide an opportunity to the Officer to share in
the appreciation of Phantom Stock of the Company. According to the terms of this Agreement, the
Company will provide a one-time Phantom Stock Allocation to a Phantom Stock Appreciation Rights
(“Phantom SAR’s”) Account on January 1, 2002, and determine the appreciation on the Phantom Stock
Allocation on an annual basis for 10 years. Upon the occurrence of various triggering events, the
Company will pay the value of the Phantom SAR’s Account in cash from its general assets.

AGREEMENT

     The Officer and the Company agree as follows:

Article 1

Definitions

     Whenever used in this Agreement, the following words and phrases shall have the meanings
specified:

     1.1 “Account Balance” means the undistributed value of the Officer’s Phantom SAR’s Account at
any given point in time.

     1.2 “Capital Account” means the net value of: (a) Standard Mutual Holding Company’s retained
earnings determined from the consolidated financial statements according to Generally Accepted
Accounting Principles (“GAAP”), plus (b) the general loan loss reserve, and excluding (c) any
market value adjustments determined under Statement of Financial Accounting Standards Number 115.

     1.3 “Change in Control” means any of the following:

     (A) any person (as such term is used in Sections 13d and 14d-2 of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), other than the Company, a

 

 

subsidiary of the Company, an employee benefit plan (or related trust) of the Company or
a direct or indirect subsidiary of the Company, or affiliates of the Company (as defined in
Rule 12b-2 under the Exchange Act), becomes the beneficial owner (as determined pursuant to
Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company
representing more than 50% of the combined voting power of the Company’s then outstanding
securities (other than a person owning 10% or more of the voting power of stock on the date
hereof); or

     (B) the liquidation or dissolution of the Company or the occurrence of, or execution of
an agreement providing for a sale of all or substantially all of the assets of the Company to
an entity which is not a direct or indirect subsidiary of the Company; or

     (C) the occurrence of, or execution of an agreement providing for a reorganization,
merger, consolidation or other similar transaction or connected series of transactions of the
Company as a result of which either (a) the Company does not survive or (b) pursuant to which
shares of the Company common stock (“Common Stock”) would be converted into cash, securities
or other property, unless, in case of either (a) or (b), the holders of the Company Common
Stock immediately prior to such transaction will, following the consummation of the
transaction, beneficially own, directly or indirectly, more than 50% of the combined voting
power of the then outstanding voting securities entitled to vote generally in the election of
directors of the company surviving, continuing or resulting from such transaction; or

     (D) the occurrence of, or execution of an agreement providing for a reorganization,
merger, consolidation or similar transaction of the Company, or before any connected series of
such transactions, if upon consummation of such transaction or transactions, the persons who
are members of the Board of Directors of the Company immediately before such transaction or
transactions cease or, in the case of the execution of an agreement for such transaction or
transactions, it is contemplated in such agreement that upon consummation such persons would
cease to constitute a majority of the Board of Directors of the Company or, in the case where
the Company does not survive in such transaction, of the company surviving, continuing or
resulting from such transaction or transactions; or

     (E) any other event which is at any time designated as a “Change in Control” for purposes
of this Agreement by a resolution adopted by the Board of Directors of the Company with the
affirmative vote of a majority of the non-employee directors in office at the time the
resolution is adopted; in the event any such resolution is adopted, the Change in Control
event specified thereby shall be deemed incorporated herein by reference and thereafter may
not be amended, modified or revoked without the written agreement of the Officer.

     (F) during any period of two consecutive years during the term of this Agreement,
individuals who at the beginning of such period constitute the Board of Directors of the
Company cease for any reason to constitute at least a majority thereof, unless the election of
each director who was not a director at the beginning of such period has been approved in
advance by directors representing at least two-thirds of the directors then in office who
were

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directors at the beginning of the period, provided however this provision shall not apply
in the event two-thirds of the Board of Directors at the beginning of a period no longer are
directors due to death, normal retirement, or other circumstances not related to a Change in
Control.

     Notwithstanding anything else to the contrary set forth in this Agreement, if (i) an agreement
is executed by the Company providing for any of the transactions or events constituting a Change in
Control as defined herein, and the agreement subsequently expires or is terminated without the
transaction or event being consummated, and (ii) Officer’s employment did not terminate during the
period after the agreement and prior to such expiration or termination, for purposes of this
Agreement it shall be as though such agreement was never executed and no Change in Control event
shall be deemed to have occurred as a result of the execution of such agreement.

	     1.4	 	"Code” means the Internal Revenue Code of 1986, as amended.

     1.5
“Disability” means the Officer’s suffering a sickness, accident or injury which
has been determined by the carrier of any individual or group disability insurance policy covering
the Officer, or by the Social Security Administration, to be a disability rendering the Officer
totally and permanently disabled. The Officer must submit proof to the Company of the carrier’s or
Social Security Administration’s determination upon the request of the Company.

	     1.6	 	"Early Termination” means that the Officer, prior to Plan Year 10 (the “Normal Benefit
Date”), has terminated employment with the Company for reasons other than Termination for Cause
(see Section 7.2), Disability, death or following a Change in Control.

	     1.7	 	"Effective Date” means the effective date of this Agreement, January 1, 2002.

	     1.8	 	"Normal Benefit Date” means the end of Plan Year 10.

     1.9 “Phantom Stock” means the hypothetical number of shares of the Company’s common stock that
would be issued at an initial price of $10.00 per share. The Phantom Stock is used solely as a
measurement tool; no Company stock will be purchased, sold, registered, or issued in connection
with this Agreement. The Officer will only be entitled to cash, and not stock in lieu of cash. The
Officer will not receive any stock or stock rights by virtue of this Agreement.

     1.10 “Plan Year” means each 12-month period from the Effective Date.

     1.11 “Termination of Employment” means the Officer ceases to be employed by the Company or any
of its subsidiaries for any reason, other than an approved leave of absence.

Article 2

Phantom SAR’s Allocation

     The Officer’s Phantom Stock Appreciation Rights Account (“Phantom SAR’s Account”) shall

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be established with a one-time allocation of                      shares of Phantom Stock as of the
Effective Date of this Agreement (the “Phantom Stock Allocation”).

Article 3

Phantom SAR’s Account

     3.1 Establishing and Crediting. The Company shall establish a Phantom SAR’s Account on its
books for the Officer. The value of the Phantom SAR’s Account is determined as follows:

     3.1.1 Valuation for Plan Years 1 Through 10. On the last day of each Plan Year 1 through
10, the value of the Phantom SAR’s Account is determined by multiplying the Phantom SAR’s
Allocation by the difference between the Initial Price Per Share and the Current Price Per
Share, as defined below.

     (a) “Initial Price Per Share” is the beginning per share value of the Phantom
Stock, which is $10.00.

     (b) “Current Price Per Share” is determined by dividing the Capital Account by the
3,178,958 total outstanding Phantom Stock shares. If there are Extraordinary Items as
defined in Section 3.1.3, the total outstanding Phantom SAR shares may be adjusted.

	 	 	An example of the calculation of a Phantom SAR’s Account Balance is as follows:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Assumptions	 	Results	 
	 	(A	)	 	Phantom SAR’s Allocation
	 	 	1,000	 
	 	(B	)	 	Initial Price Per Share
	 	$	10.00	 
	 	(C	)	 	Capital Account at the Measurement Date
	 	$	34,968,538	 
	 	(D	)	 	Total Outstanding Phantom Shares
	 	 	3,178,958	 
	 	(E	)	 	Current Price Per Share
	 	$	11.00	 
	 	(F	)	 	Phantom Price Appreciation = (E) minus (B)
	 	$	1.00	 
	 	(G	)	 	Phantom SAR’s Account Value = (A) times (F)
	 	$	1,000	 

     3.1.2 Interest on Phantom SAR’s Account Balance. Unless otherwise specified in this
Agreement, no interest shall be credited to the Phantom SAR’s Account during Plan Years 1
through 10.

     3.1.3 Extraordinary Items. In the event of the Company’s merger with a mutual
institution, conversion to a stock company or other material change in the Company’s total
capitalization that occurs after the establishment by the Company of the Officer’s Phantom
SAR’s Account, the number of outstanding Phantom SAR shares subject to this Agreement shall be
adjusted accordingly.

     3.2 Statement of Accounts. The Company shall provide to the Officer, within 90 days following
the end of each Plan Year this Agreement is in effect, a statement setting forth the

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Phantom SAR’s
Account Balance, stating the number of Phantom Stock shares and detailing the calculation of the
value of the Officer’s Phantom SAR Account.

     3.3 Accounting Device Only. The Phantom SAR’s Account is solely a device for measuring
amounts to be paid under this Agreement. The Phantom SAR’s Account is not a trust fund of any
kind. The Officer is a general unsecured creditor of the Company for the payment of benefits. The
benefits represent the mere Company promise to pay such benefits. The Officer’s rights are not
subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance,
attachment, or garnishment by the Officer’s creditors.

Article 4

Benefit Payments

     4.1 Benefit at Normal Benefit Date. If the Officer reaches the Normal Benefit Date while in
continuous employment with the Company, the Company shall pay to the Officer the benefit described
in this Section 4.1 in lieu of any other benefit under this Agreement. However, if there has been a
Change in Control prior to the Normal Benefit Date, the Officer’s benefits shall be determined
pursuant to Section 4.3.

     4.1.1 Amount of Benefit. The benefit under this Section 4.1 is the value of the Phantom
SAR’s Account at the end of Plan Year 10.

     4.1.2 Payment of Benefit. The benefit will be in the form elected by the Officer in
Exhibit 1.

     4.2 Early Termination Benefit. Upon Early Termination, the Company shall pay to the Officer
the benefit described in this Section 4.2 in lieu of any other benefit under this Agreement.

     4.2.1 Amount of Benefit. The benefit amount under this Section 4.2 is the value of the
Phantom SAR’s Account for the Plan Year ended immediately prior to the Officer’s Termination
of Employment, multiplied by the Vesting Percentage pursuant to the following vesting
schedule:

	 	 	 
	Plan
Year’s Completed	 	Vesting Percentage
	Less than 1

	 	0%
	1
	 	20%
	2
	 	40%
	3
	 	60%
	4
	 	80%
	5 or more
	 	100%

     4.2.2 Payment of Benefit. The Company shall pay the benefit to the Officer in a lump sum
within 90 days after the end of Plan Year 10. No additional earnings shall be
credited to the Account after Termination of Employment.

     4.3 Change in Control Benefit. If the Officer is employed by the Company at the date a

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Change
in Control occurs, the Company shall pay to the Officer one of the benefits described in this
Section 4.3 in lieu of any other benefit under this Agreement.

     4.3.1 Amount of Benefit. The benefit amount under this Section 4.3.1 is the greater of:
(a) the value of the Officer’s Phantom SAR’s Account determined in accordance with Section
3.1; or (b) the Officer’s Phantom SAR’s Allocation multiplied by the actual price per share
after the Change in Control occurs. The Officer shall be considered to be 100 percent vested
even if the Officer has not completed 5 Plan Years.

     4.3.2 Payment of Benefit. The Company shall pay the benefit as described in Exhibit 1,
commencing within 90 days of the earlier of: (a) the Officer’s Termination of Employment or
(b) the Officer’s Normal Benefit Date. The benefit shall be paid in the form elected in
Exhibit 1.

     4.4 Disability Benefit. Upon Termination of Employment due to Disability prior to the Normal
Benefit Date, the Company shall pay to the Officer the benefit described in this Section 4.4 in
lieu of any other benefit under this Agreement.

     4.4.1 Amount of Benefit. The benefit amount under this Section 4.4 is the value of the
Phantom SAR’s Account for the Plan Year ended immediately prior to termination. The Officer
shall be considered to be 100 percent vested even if the Officer has not completed 5 Plan
Years at the date of termination due to Disability.

     4.4.2 Payment of Benefit. The Company shall pay the benefit to the Officer as specified
in Exhibit 1, commencing within 90 days of the date of termination due to Disability.

Article 5

Death Benefits

     5.1 Death During Active Service. If the Officer dies while in the active service of the
Company, the Company shall pay to the Officer’s beneficiary the benefit described in this Section
5.1 in lieu of any other benefit under this Agreement.

	 	5.1.1	 	Amount of Benefit. The benefit in this Section 5.1 is the greater of: (a) the
value of the Phantom SAR’s Account for the Plan Year ended immediately prior to the Officer’s
death; or (b) $300,000.
	 
	 	5.1.2	 	Payment of Benefit. The Company shall pay the benefit to the Officer’s designated
beneficiary as elected in Exhibit 1, commencing within 90 days of the Officer’s death.

     5.2 Death During Benefit Period. If the Officer dies after benefit payments have commenced
under this Agreement but before receiving all such payments, the Company shall pay the remaining
benefits to the Officer’s beneficiary at the same time and in the same amounts they would have been
paid to the Officer had the Officer survived.

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     5.3 Death After Termination of Employment But Before Payment of Benefit Commences. If the
Officer is entitled to a benefit under this Agreement, but dies prior to the payment of said
benefit, the Company shall pay the same benefit payment to the Officer’s beneficiary that the
Officer was entitled to prior to death except that the benefit payment shall be paid in a lump sum
within 90 days of the Officer’s death.

Article 6

Beneficiaries

     6.1 Beneficiary Designations. The Officer shall designate a beneficiary by filing a written
designation with the Company. The Officer may revoke or modify the designation at any time by
filing a new designation. However, designations will only be effective if signed by the Officer
and accepted by the Company during the Officer’s lifetime. The Officer’s beneficiary designation
shall be deemed automatically revoked if the beneficiary predeceases the Officer, or if the Officer
names a spouse as beneficiary and the marriage is subsequently dissolved. If the Officer dies
without a valid beneficiary designation, all payments shall be made to the Officer’s estate.

     6.2 Facility of Payment. If a benefit is payable to a minor, to a person declared
incompetent, or to a person incapable of handling the disposition of his or her property, the
Company may pay such benefit to the guardian, legal representative or person having the care or
custody of such minor, incompetent person or incapable person. The Company may require proof of
incompetency, minority or guardianship as it may deem appropriate prior to distribution of the
benefit. Such distribution shall completely discharge the Company from all liability with respect
to such benefit.

Article 7

General Limitations

     7.1 Excess Parachute or Golden Parachute Payment. Notwithstanding any provision of this
Agreement to the contrary, the Company shall not pay any benefit under this Agreement to the extent
the benefit would be an excess parachute payment under Section 280G of the Code or would be a
prohibited golden parachute payment pursuant to 12 C.F.R. §359.2 and for which the appropriate
federal banking agency has not given written consent to pay pursuant to 12 C.F.R. §359.4.

     7.2 Termination for Cause. Notwithstanding any provision of this Agreement to the contrary,
the Company shall not pay any benefit under this Agreement if the Company terminates the Officer’s
employment for:

     (a) Gross negligence or gross neglect of duties;

     (b) Commission of a felony or of a gross misdemeanor involving moral turpitude; or

     (c) Fraud, disloyalty, dishonesty or willful violation of any law or significant Company
policy committed in connection with the Officer’s employment and resulting in an adverse
effect on the Company.

7

 

     7.3 Removal. Notwithstanding any provision of this Agreement to the contrary, the Company
shall not pay any benefit under this Agreement if the Officer is subject to a final removal or
prohibition order issued by an appropriate federal banking agency pursuant to Section 8(e) of the
Federal Deposit Insurance Act.

     7.4 Suicide or Misstatement. The Company shall not pay any benefit under this Agreement if
the Officer commits suicide within two years after the date of this Agreement, or if the Officer
has made any material misstatement of fact on any application for life insurance purchased by the
Company, or any other reason, provided however that the Company shall evaluate the reason for the
denial, and upon advice of Counsel and in its sole discretion, consider judicially challenging any
denial.

Article 8

Claims and Review Procedures

     8.1 Claims Procedure. An Officer or beneficiary (“claimant”) who has not received benefits
under the Agreement that he or she believes should be paid shall make a claim for such benefits as
follows:

     8.1.1 Initiation — Written Claim. The claimant initiates a claim by submitting to the
Company a written claim for the benefits.

     8.1.2 Timing of Company Response. The Company shall respond to such claimant within 90
days after receiving the claim. If the Company determines that special circumstances require
additional time for processing the claim, the Company can extend the response period by an
additional 90 days by notifying the claimant in writing, prior to the end of the initial
90-day period, that an additional period is required. The notice of extension must set forth
the special circumstances and the date by which the Company expects to render its decision.

     8.1.3 Notice of Decision. If the Company denies part or all of the claim, the Company
shall notify the claimant in writing of such denial. The Company shall write the notification
in a manner calculated to be understood by the claimant. The notification shall set forth:

     8.1.3.1 The specific reasons for the denial,

     8.1.3.2 A reference to the specific provisions of the Agreement on which the denial
is based,

     8.1.3.3 A description of any additional information or material necessary for the
claimant to perfect the claim and an explanation of why it is needed,

     8.1.3.4 An explanation of the Agreement’s review procedures and the time limits
applicable to such procedures, and

8

 

     8.1.3.5 A statement of the claimant’s right to bring a civil action under ERISA
Section 502(a) following an adverse benefit determination on review.

Article 9

Amendments and Termination

     This Agreement may be amended or terminated only by a written agreement signed by the Company
and the Officer.

Article 10

Miscellaneous

     10.1 Binding Effect. This Agreement shall bind the Officer and the Company, and their
beneficiaries, survivors, executors, successors, administrators and transferees.

     10.2 No Guarantee of Employment. This Agreement is not an employment policy or contract. It
does not give the Officer the right to remain an employee of the Company, nor does it interfere
with the Company’s right to discharge the Officer. It also does not require the Officer to remain
an employee nor interfere with the Officer’s right to terminate employment at any time.

     10.3 Non-Transferability. Benefits under this Agreement cannot be sold, transferred, assigned,
pledged, attached or encumbered in any manner.

     10.4 Reorganization. The Company shall not merge or consolidate into or with another company,
or reorganize, or sell substantially all of its assets to another company, firm, or person unless
such succeeding or continuing company, firm, or person agrees to assume and discharge the
obligations of the Company under this Agreement. Upon the occurrence of such event, the term
“Company” as used in this Agreement shall be deemed to refer to the successor or survivor company.

     10.5 Tax Withholding. The Company shall withhold any taxes that are required to be withheld
from the benefits provided under this Agreement.

     10.6 Applicable Law. The Agreement and all rights hereunder shall be governed by the laws of
the Commonwealth of Pennsylvania, except to the extent preempted by the laws of the United States
of America.

     10.7 Unfunded Arrangement. The Officer and beneficiary are general unsecured creditors of the
Company for the payment of benefits under this Agreement. The benefits represent the mere promise
by the Company to pay such benefits. The rights to benefits are not subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance,
attachment, or garnishment by creditors. Any insurance on the Officer’s life is a general asset of
the Company to which the Officer and beneficiary have no preferred or secured claim.

     10.8 Entire Agreement. This Agreement constitutes the entire agreement between the Company
and the Officer as to the subject matter hereof. No rights are granted to the Officer by

9

 

virtue of this Agreement other than those specifically set forth herein.

     10.9 Administration. The Company shall have powers which are necessary to administer this
Agreement, including but not limited to:

     (a) Interpreting the provisions of the Agreement;

     (b) Establishing and revising the method of accounting for the Agreement;

     (c) Maintaining a record of benefit payments; and

     (d) Establishing rules and prescribing any forms necessary or desirable to administer the
Agreement.

     10.10 Named Fiduciary. The Company shall be the named fiduciary and plan administrator under
this Agreement. It may delegate to others certain aspects of the management and operational
responsibilities including the employment of advisors and the delegation of ministerial duties to
qualified individuals.

     10.11 Recovery of Estate Taxes. If the Officer’s gross estate for federal estate tax purposes
includes any amount determined by reference to and on account of this Agreement, and if the
beneficiary is other than the Officer’s estate, then the Officer’s estate shall be entitled to
recover from the beneficiary receiving such benefit under the terms of the Agreement, an amount by
which the total estate tax due by the Officer’s estate, exceeds the total estate tax which would
have been payable if the value of such benefit had not been included in the Officer’s gross estate.
If there is more than one person receiving such benefit, the right of recovery shall be against
each such person. In the event the beneficiary has a liability hereunder, the beneficiary may
petition the Company for a lump sum payment in an amount not to exceed the beneficiary’s liability
hereunder.

     IN WITNESS WHEREOF, the Officer and the Company have signed this Agreement.

	 	 	 	 	 	 	 	 	 	 	 	 	 

	OFFICER	 	 	 	STANDARD BANK, PaSB	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Title
	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	 	 	Date:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 	 	 

	 	 

10

 

EXHIBIT 1

FORM OF BENEFIT ELECTION

STANDARD BANK, PaSB

PHANTOM STOCK APPRECIATION RIGHTS AGREEMENT

	 	 	I elect to receive benefits under the Agreement in the following form (initial
appropriate box):

	4.1.2	 	Normal Benefit Date
	 
	o 	 	The Company shall pay the benefit to the Officer in a lump
sum within 90 days of the Officer’s Normal Benefit Date.
	 
	o 	 	The Company shall pay the benefit to the Officer in 24 equal
monthly installments commencing within 90 days following the
Officer’s Normal Benefit Date. The Company shall credit
interest at an annual rate equal to two percent (2%) above
the 10 Year Treasury Rate. The 10 Year Treasury Rate shall
be determined using the average rate in effect for the month
of December immediately prior to commencement of benefit
payments. The 10 Year Treasury Rate used for this purpose
shall not be less than 4.00%.
	 
	o 	 	The Company shall pay the benefit to the Officer in 60 equal
monthly installments commencing within 90 days following the
Officer’s Normal Benefit Date. The Company shall credit
interest at an annual rate equal to two percent (2%) above
the 10 Year Treasury Rate. The 10 Year Treasury Rate shall
be determined using the average rate in effect for the month
of December immediately prior to commencement of benefit
payments. The 10 Year Treasury Rate used for this purpose
shall not be less than 4.00%.
	 
	o 	 	The Company shall pay the benefit to the Officer in 120 equal
monthly installments commencing within 90 days following the
Officer’s Normal Benefit Date. The Company shall credit
interest at an annual rate equal to two percent (2%) above
the 10 Year Treasury Rate. The 10 Year Treasury Rate shall
be determined using the average rate in effect for the month
of December immediately prior to commencement of benefit
payments. The 10 Year Treasury Rate used for this purpose
shall not be less than 4.00%.
	 
	4.3.2	 	Change in Control Benefit
	 
	o 	 	The Company shall pay the benefit to the Officer in a lump
sum within 90 days of the earlier of: (a) the Officer’s
Termination of Employment or (b) the Officer’s Normal Benefit
Date.
	 
	o 	 	The Company shall pay the benefit to the Officer in 24 equal
monthly installments commencing within 90 of the earlier of:
(a) the Officer’s Termination of Employment or (b) the
Officer’s Normal Benefit Date. The Company shall credit
interest at an annual rate equal to two percent (2%) above
the 10 Year Treasury Rate. The 10 Year Treasury Rate shall
be determined using the average rate in effect for the month
of December immediately prior to commencement of benefit
payments. The 10 Year Treasury Rate used for this purpose shall not be less than 4.00%.
	 
	o 	 	The Company shall pay the benefit to the Officer in 60 equal
monthly installments commencing within 90 days of the earlier
of: (a) the Officer’s Termination of Employment or (b) the
Officer’s Normal Benefit Date. The Company shall credit
interest at an annual rate equal to two percent (2%) above
the 10 Year Treasury Rate. The 10 Year Treasury Rate shall
be determined using the average rate in effect for the month
of December immediately prior to commencement of benefit
payments. The 10 Year Treasury Rate used for this purpose shall
not be less than 4.00%.

11

 

	 
	___ 	 	The Company shall pay the benefit to the Officer in 120 equal
monthly installments commencing within 90 days of the earlier
of: (a) the Officer’s Termination of Employment or (b) the
Officer’s Normal Benefit Date. The Company shall credit
interest at an annual rate equal to two percent (2%) above
the 10 Year Treasury Rate. The 10 Year Treasury Rate shall
be determined using the average rate in effect for the month
of December immediately prior to commencement of benefit
payments. The 10 Year Treasury Rate used for this purpose
shall not be less than 4.00%.
	 
	4.4.2	 	Disability Benefit
	 
	___ 	 	The Company shall pay the benefit to the Officer in a lump
sum within 90 days of the date of the Officer’s termination
due to Disability.
	 
	___ 	 	The Company shall pay the benefit to the Officer in 24 equal
monthly installments commencing within 90 of the date of the
Officer’s termination due to Disability. The Company shall
credit interest at an annual rate equal to two percent (2%)
above the 10 Year Treasury Rate. The 10 Year Treasury Rate
shall be determined using the average rate in effect for the
month of December immediately prior to commencement of
benefit payments. The 10 Year Treasury Rate used for this
purpose shall not be less than 4.00%.
	 
	___ 	 	The Company shall pay the benefit to the Officer in 60 equal
monthly installments commencing within 90 days of the date of
the Officer’s termination due to Disability. The Company
shall credit interest at an annual rate equal to two percent
(2%) above the 10 Year Treasury Rate. The 10 Year Treasury
Rate shall be determined using the average rate in effect for
the month of December immediately prior to commencement of
benefit payments. The 10 Year Treasury Rate used for this
purpose shall not be less than 4.00%.
	 
	___ 	 	The Company shall pay the benefit to the Officer in 120 equal
monthly installments commencing within 90 days of the date of
the Officer’s termination due to Disability. The Company
shall credit interest at an annual rate equal to two percent
(2%) above the 10 Year Treasury Rate. The 10 Year Treasury
Rate shall be determined using the average rate in effect for
the month of December immediately prior to commencement of
benefit payments. The 10 Year Treasury Rate used for this
purpose shall not be less than 4.00%.
	 
	5.1.2	 	Death During Active Service
	 
	___ 	 	The Company shall pay the benefit to the Officer’s designated
beneficiary in a lump sum commencing within 90 days of the
date of the Officer’s death.
	 
	___ 	 	The Company shall pay the benefit to the Officer’s designated
beneficiary in 24 equal monthly installments commencing
within 90 of the date of the Officer’s death. The Company
shall credit interest at an annual rate equal to two percent
(2%) above the 10 Year Treasury Rate. The 10 Year Treasury
Rate shall be determined using the average rate in effect for
the month of December immediately prior to commencement of
benefit payments. The 10 Year Treasury Rate used for this
purpose shall not be less than 4.00%.
	 
	___ 	 	The Company shall pay the benefit to the Officer’s designated
beneficiary in 60 equal monthly installments commencing
within 90 days of the date of the Officer’s death. The
Company shall credit interest at an annual rate equal to two
percent (2%) above the 10 Year Treasury Rate. The 10 Year
Treasury Rate shall be determined using the average rate in
effect for the month of December immediately prior to
commencement of benefit payments. The 10 Year Treasury Rate
used for this purpose shall not be less than 4.00%.
	 
	___ 	 	The Company shall pay the benefit to the Officer’s designated
beneficiary in 120 equal monthly installments commencing
within 90 days of the date of the Officer’s death. The
Company shall credit interest at an annual rate
equal to two percent (2%) above the 10 Year Treasury Rate. The 10 Year Treasury Rate shall be
determined

12

 

	 	 	using the average rate in effect for the month of December immediately prior to
commencement of benefit payments. The 10 Year Treasury Rate used for this purpose shall not
be less than 4.00%.

Signature                      
                          
             

Date                              
                  
             

Received by the Company this                      day of            
                 
            , 200_.

By                               
                  
            

Title                              
                  
             

13

 

BENEFICIARY DESIGNATION

STANDARD BANK, PaSB

PHANTOM STOCK APPRECIATION RIGHTS AGREEMENT

I designate the following as beneficiary of any death benefits under this Agreement:

	 	 	 

	Primary:
	 	 
	 

	 	 
 
	 
	 	 
	 

	 	 	 

	Contingent:
	 	 
	 

	 	 
 
	 
	 	 
	 

 

			
	Note:	 	To name a trust as beneficiary, please provide the name of the trustee(s) and the
exact name and date of the trust agreement.

I understand that I may change these beneficiary designations by filing a new written designation
with the Company. I further understand that the designations will be automatically revoked if the
beneficiary predeceases me, or, if I have named my spouse as beneficiary and our marriage is
subsequently dissolved.

Signature                                            
                 

Date                                            
                 

Accepted by the Company this                      day of                         
                , 200_.

By                                            
                 

Title                                            
                 

14

 

STANDARD BANK, PaSB

Phantom Stock Appreciation Rights Agreement

 

     Section 1.11 of the Agreement shall be deleted in its entirety and replaced by the
following:

	1.11	 	“Specified Employee” means a key employee (as defined in Section 416(i) of the Code without
regard to paragraph 5 thereof) of the Company if any stock of the Company is publicly traded
on an established securities market or otherwise, as determined by the plan administrator
based on the twelve (12) month period ending each December 31 (the “identification period”).
If the Officer is determined to be a Specified Employee for an identification period, the
Officer shall be treated as a Specified Employee for purposes of this Agreement during the
twelve (12) month period that begins on the first day of the fourth month following the close
of the identification period.

     The following Section 1.12 shall be added to the Agreement immediately following Section
1.11:

	1.12	 	“Termination of Employment” means termination of the Officer’s employment with the Bank for
reasons other than death. Whether a termination of employment has occurred is determined
based on whether the facts and circumstances indicate that the Bank and the Officer
reasonably anticipated that no further services would be performed after a certain date or
that the level of bona fide services the Officer would perform after such date (whether as an
employee or as an independent contractor) would permanently decrease to no more than twenty
percent (20%) of the average level of bona fide services performed (whether as an employee or
an independent contractor) over the immediately preceding thirty-six (36) month period (or
the full period of services to the Bank if the Officer has been providing services to the
Bank less than thirty-six (36) months).

     Section 4.1.2 of the Agreement shall be deleted in its entirety and replaced by the
following:

	4.1.2	 	Payment of Benefit. The Company shall pay the benefit to the Officer in sixty (60) equal
monthly installments commencing within ninety (90) days following the Officer’s Normal
Benefit Date. The Company shall credit interest at an annual rate equal to two percent (2%)
above the 10-Year Treasury Rate. The 10-Year Treasury Rate shall be determined using the
average rate in effect for the month of December immediately prior to commencement of benefit
payments. The 10-Year Treasury Rate used for this purpose shall not be less than four percent
(4%).

     Section 4.1.3 of the Agreement shall be deleted in its entirety.

     Section 4.3.2 of the Agreement shall be deleted in its entirety and replaced by the
following:

	4.3.2	 	Payment of Benefit. The Company shall pay the benefit to the Officer in sixty (60) equal
monthly installments, commencing:

     4.3.2.1
If Termination of Employment Occurs Within Two Years of a Change in
Control. If

2

 

STANDARD BANK, PaSB

Phantom Stock Appreciation Rights Agreement

 

	 	 	Termination of Employment occurs on or before the second anniversary of the Change in
Control, the Company shall distribute the benefit to the Officer within ninety (90) days
of the Officer’s Termination of Employment.
	 
	4.3.2.2	 	If no Termination of Employment occurs following a Change in Control. If a Termination of
Employment does not occur after the Change in Control, the Company shall
distribute. the benefit to the Officer within ninety (90) days of the Officer’s
Normal Benefit Date.
	 
	4.3.2.3	 	Interest. The Company shall credit interest at an annual rate equal to two percent (2%)
above the 10-Year Treasury Rate during any applicable installment period. The 10-Year
Treasury Rate shall be determined using the average rate in effect for the month of December
immediately prior to commencement of benefit payments. The 10-Year Treasury Rate used for
this purpose shall not be less than four percent (4%).

     Sections 4.4, 4.4.1 and 4.4.2 of the Agreement shall be deleted in their entirety and
replaced by the following:

	4.4	 	Disability Benefit. Upon the Officer experiencing a Disability prior to Normal Benefit Date,
the Company shall pay to the Officer the benefit described in this Section 4.4 in lieu of any
other benefit under this Agreement.
	 
	4.4.1	 	Amount of Benefit. The benefit amount under this Section 4.4 is the value of the Phantom
SAR’s Account for the Plan Year immediately prior to such Disability. The Officer shall be
considered to be one hundred percent (100%) vested even if the Officer has not completed five
(5) Plan Years at the date of such Disability.
	 
	4.4.2	 	Payment of Benefit. The Company shall pay the benefit to the Officer in sixty (60) equal
monthly installments commencing within ninety (90) days following such Disability. The
Company shall credit interest at an annual rate equal to two percent (2%) above the 10-Year
Treasury Rate. The 10-Year Treasury Rate shall be determined using the average rate in effect
for the month of December immediately prior to commencement of benefit payments. The 10-Year
Treasury Rate used for this purpose shall not be less than four percent (4%).

     The following Sections 4.5, 4.6 and 4.7 shall be added to the Agreement immediately following
Section 4.4.2:

	4.5	 	Restriction on Timing of Distributions. Notwithstanding any provision of this Agreement to
the contrary, if the Officer is considered a Specified Employee at Termination of Employment,
the provisions of this Section 4.5 shall govern all distributions hereunder. Benefit
distributions that are made due to a Termination of Employment occurring while the Officer is
a Specified Employee shall not be made during the first six (6) months following Termination
of Employment. Rather, any distribution which would otherwise be paid to the Officer during
such period shall be accumulated and paid to the Officer in a lump sum on the first day of
the seventh month following the Termination of

3

 

STANDARD BANK, PaSB

Phantom Stock Appreciation Rights Agreement

 

	 	 	Employment. All subsequent distributions shall be paid in the manner specified.

	4.6	 	Distributions Upon Income Inclusion Under Section 409A of the Code. If any amount is required
to be included in income by the Officer prior to receipt due to a failure of this Agreement to
meet the requirements of Code Section 409A, the Officer may petition the plan administrator
for a distribution of that portion of the amount the Company has accrued with respect to the
Company’s obligations hereunder that is required to be included in the Officer’s income. Upon
the grant of such a petition, which grant shall not be unreasonably withheld, the Company
shall distribute to the Officer immediately available funds in an amount equal to the portion
of the amount the Company has accrued with respect to the Company’s obligations hereunder
required to be included in income as a result of the failure of this Agreement to meet the
requirements of Code Section 409A, within ninety (90) days of the date when the Officer’s
petition is granted. Such a distribution shall affect and reduce the Officer’s benefits to be
paid under this Agreement.
	 
	4.7	 	Change in Form or Timing of Distributions. All changes in the form or timing of
distributions hereunder must comply with the following requirements. The changes:

	 	(a)	 	may not accelerate the time or schedule of any distribution, except as provided in Code Section
409A and the regulations thereunder;
	 
	 	(b)	 	must, for benefits distributable under Sections 4.1.2 and 4.3.2(b), be made at least twelve (12)
months prior to the first scheduled distribution; must, for
	 
	 	(c)	 	benefits distributable under Sections
4.1.2, 4.2.2, 4.3.2(a) and 4.3.2(b), delay the commencement of distributions for a minimum of five
(5) years from the date the first distribution was originally scheduled to be made; and
must take effect not less than twelve (12) months after the election is
	 
	 	(d)	 	made.

     Section 5.1.2 of the Agreement shall be deleted in its entirety and replaced by the following:

	5.1.2	 	Payment of Benefit. The Company shall pay the benefit to the Officer’s designated
beneficiary in a lump sum within ninety (90) days of the date of the Officer’s death.

	 	 	Article 9 of the Agreement shall be deleted in its entirety and replaced by the following:

Article 9

Amendments and Termination

	9.1	 	Amendments. This Agreement may be amended only by a written agreement signed by the Company
and the Officer. However, the Company may unilaterally amend this Agreement to conform with
written directives to the Company from its auditors or banking regulators or to comply with
legislative changes or tax law, including without limitation Section 409A of the Code and any
and all Treasury regulations and guidance promulgated thereunder.

4

 

STANDARD BANK, PaSB

Phantom Stock Appreciation Rights Agreement

 

	9.2	 	Plan Termination Generally. This Agreement may be terminated only by a written
agreement signed by the Company and the Officer. Except as provided in Section 9.3, the
termination of this Agreement shall not cause a distribution of benefits under this
Agreement. Rather, after such termination benefit distributions will be made at the earliest
distribution event permitted under Article 4 or Article 5.
	 
	9.3	 	Plan Terminations Under Section 409A. Notwithstanding anything to the contrary in Section
9.2, if this Agreement terminates in the following circumstances:

	 	(a)	 	Within thirty (30) days before or twelve (12) months after a Change in
Control, or in the ownership of a substantial portion of the assets of the Company as
described in Section 409A(2)(A)(v) of the Code, provided that all distributions are
made no later than twelve (12) months following such termination of the Agreement and
further provided that all the Company’s arrangements which are substantially similar
to the Agreement are terminated so the Officer and all participants in the similar
arrangements are required to receive all amounts of compensation deferred under the
terminated arrangements within twelve (12) months of such terminations;
	 
	 	(b)	 	Upon the Company’s dissolution or with the approval of a bankruptcy court
provided that the amounts deferred under the Agreement are included in the Officer’s
gross income in the latest of (i) the calendar year in which the Agreement terminates;
(ii) the calendar year in which the amount is no longer subject to a substantial risk
of forfeiture; or (iii) the first calendar year in which the distribution is
administratively practical; or
	 
	 	(c)	 	Upon the Company’s termination of this and all other arrangements that would
be aggregated with this Agreement pursuant to Treasury Regulations Section 1.409A-1(c)
if the Officer participated in such arrangements (“Similar Arrangements”), provided
that (i) the termination and liquidation does not occur proximate to a downturn in the
financial health of the Company, (ii) all termination distributions are made no
earlier than twelve (12) months and no later than twenty-four (24) months following
such termination, and (iii) the Company does not adopt any new arrangement that would
be a Similar Arrangement for a minimum of three (3) years following the date the
Company takes all necessary action to irrevocably terminate and liquidate the
Agreement;

	 	 	the Company may distribute the Account Balance, determined as of the date of the termination
of the Agreement, to the Officer in a lump sum subject to the above terms.

     Section 10.11 of the Agreement shall be deleted in its entirety and replaced by the
following:

	10.11	 	Compliance with Section Code 409A. This Agreement shall be interpreted and administered
consistent with Code Section 409A.

     Exhibit 1 entitled “Form of Benefit Election” shall be deleted in its entirety from the
Agreement.

5

 

STANDARD BANK, PaSB

Phantom Stock Appreciation Rights Agreement

 

     Exhibit 2 entitled “Option to Defer Receipt of Benefits” shall be deleted in its entirety
from the Agreement.

     IN WITNESS OF THE ABOVE, the Company and the Officer hereby consent to this First Amendment.

	 	 	 	 	 	 	 	 	 

	Officer:	 	STANDARD BANK, PaSB
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 	 	 	 	 	 	   
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:

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