Document:

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                                                                    EXHIBIT 10.9

                      CHANGE IN CONTROL SEVERANCE AGREEMENT

      THIS AGREEMENT is effective as of the 1st day of July 2003, between
Laurel Savings Bank (the "Bank"), a Pennsylvania-chartered savings bank and
wholly owned subsidiary of Laurel Capital Group, Inc. (the "Corporation"), and
Robert A. Stephens (the "Executive").

                                   WITNESSETH

      WHEREAS, the Executive is presently an officer of the Bank, and the Bank
desires to be ensured of the Executive's continued active participation in the
business of the Bank;

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

      NOW THEREFORE, in consideration of the premises and the mutual agreements
herein contained, 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) ANNUAL COMPENSATION. The Executive's "Annual Compensation" for
purposes of this Agreement shall be deemed to mean the highest level of base
salary and bonus paid to the Executive by the Corporation, the Bank or any
subsidiary of either entity during the calendar year in which the Date of
Termination occurs (determined on an annualized basis) or either of the two
calendar years immediately preceding the calendar year in which the Date of
Termination occurs.

      (b) 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 or material breach of any provision of this Agreement.
For purposes of this subparagraph, no act or failure to act on the Executive's
part shall be considered "willful" unless done, or omitted to be done, by the
Executive not in good faith and without reasonable belief that the Executive's
action or omission was in the best interest of the Bank and/or the Corporation.

      (c) CHANGE IN CONTROL OF THE CORPORATION. "Change in Control of the
Corporation" shall mean a change in control of a nature that would be required
to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A
promulgated under the Securities Exchange Act of 1934, as amended ("Exchange
Act"), or any successor thereto, whether or not the Corporation is registered
under the Exchange Act; provided that, without limitation, such a change in
control shall be deemed to have occurred if (i) any "person" (as such term is
used in

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Sections 13(d) and 14(d) of the Exchange Act and with respect to the
Bank, other than the Corporation) is or becomes the "beneficial owner" (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Corporation or the Bank representing 25% or more of the
combined voting power of the Corporation's or the Bank's then outstanding
securities; or (ii) during any period of two consecutive years, individuals who
at the beginning of such period constitute the Board of Directors of the
Corporation or the Board of Trustees of the Bank (referred to hereinafter
collectively as "Boards of Directors") cease for any reason to constitute at
least a majority thereof unless the election, or the nomination for election by
stockholders, of each new director or trustee, as the case may be, was approved
by a vote of at least two-thirds OF the directors or trustees, as the case may
be, then still in office who were directors at the beginning of the period.

      (d) CODE. "Code" shall mean the Internal Revenue Code of 1986, as amended.

      (e) DATE OF TERMINATION. "Date of Termination" shall mean (i) if the
Executive's employment is terminated for Cause, 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.

      (f) DISABILITY. Termination by the Bank 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 Bank, the Corporation or
any subsidiary of either entity or, if no such plan applies, which would qualify
the Executive for disability benefits under the Federal Social Security System.

      (g) GOOD REASON. Termination by the Executive of the Executive's
employment for "Good Reason" shall mean termination by the Executive following a
Change in Control of the Corporation based on:

            (i)   Without the Executive's express written consent, the
                  assignment by the Bank to the Executive of any duties which
                  are materially inconsistent with the Executive's positions,
                  duties, responsibilities and status with the Bank immediately
                  prior to a Change in Control of the Corporation, or a material
                  change in the Executive's reporting responsibilities, titles
                  or offices as an employee and as in effect immediately prior
                  to such a Change in Control, of the Corporation or any removal
                  of the Executive from or any failure to re-elect the Executive
                  to any of such responsibilities, titles or offices, except in
                  connection with the termination of the Executive's employment
                  for Cause, Disability or Retirement or as a result of the
                  Executive's death or by the Executive other than for Good
                  Reason;

            (ii)  Without the Executive's express written consent, a reduction
                  by the Bank in the Executive's base salary as in effect
                  immediately prior to the date of the Change in Control of the
                  Corporation or as the same may be increased

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                  from time to time thereafter or a reduction in the package of
                  fringe benefits provided to the Executive, taken as a whole;

            (iii) The principal executive office of the Bank is relocated more
                  than fifty (50) miles from its location as of the date hereof
                  or, without the Executive's express written consent, the Bank
                  requires the Executive to be based anywhere other than an area
                  in which the Employer's principal executive office is located,
                  except for required travel on business of the Bank to an
                  extent substantially consistent with the Executive's present
                  business travel obligations immediately preceding the Change
                  in Control of the Corporation;

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

            (v)   The failure by the Bank to obtain the assumption of and
                  agreement to perform this Agreement by any successor as
                  contemplated in Section 7 hereof.

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

      (i) NOTICE OF TERMINATION. Any purported termination of the Executive's
employment by the Bank 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 a 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 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 Bank's termination of Executive's employment for Cause; and (iv)
is given in the manner specified in Section 8 hereof.

      (j) RETIREMENT. Termination by the Bank of the Executive's employment
based on "Retirement" shall mean voluntary termination by the Employee in
accordance with the Bank's or the Corporation's retirement policies, including
early retirement, generally applicable to their salaried employees.

      2. BENEFITS UPON TERMINATION. If the Executive's employment by the
Employers shall be terminated within the two (2) year period subsequent to a
Change in Control of the Corporation by (i) the Bank for other than Cause,
Disability, Retirement or the Executive's death (ii) the Executive for Good
Reason or (iii) the Executive for any reason within the first sixty (60) days
following the one year anniversary of the Change in Control of the Corporation,
then the Bank shall:

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      (a) pay to the Executive, in either twenty-four (24) equal monthly
installments beginning with the first business day of the month following the
Date of Termination or in a lump sum within five (5) days of the Date of
Termination (at the Executive's election), a cash severance amount equal to two
(2) times the Executive's Annual Compensation; and

      (b) maintain and provide for a period ending at the earlier of (i) twelve
(12) months from 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) any additional contributions under ay of the Bank's or the
Corporation's qualified defined contribution or defined benefit plans, (y) stock
option plans or restricted stock plans of the Corporation and (z) cash incentive
compensation included in 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 Employers shall arrange to provide the Executive with either (A) 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 or (B) a cash payment equal to the then current monthly cost of
benefits multiplied by the number of whole months remaining in the period curing
which benefits are required to be provided under the terms of this subparagraph
(b).

      3. LIMITATION OF BENEFITS UNDER CERTAIN CIRCUMSTANCES. If the payments and
benefits due Executive pursuant to Section 2 hereof, either alone or together
with other payments and benefits which the Executive has the right to receive
from the Bank or the Corporation, would constitute a "parachute payment" under
Section 280G of the Code, the payments and benefits payable by the Bank or
Corporation pursuant to Section 2 hereof shall be reduced, in the manner
determined by the Executive, by the amount, if any, which is the minimum
necessary to result in no portion of the payments and benefits payable by the
Bank or Corporation under Section 2 being non-deductible to the Bank and the
Corporation pursuant to Section 280G of the Code and subject to the excise tax
imposed under Section 4999 of the Code. The determination of any reduction in
the payments and benefits to be made pursuant to Section 2 shall be based upon
the opinion of independent counsel selected by the Bank's independent public
accountants and paid by the Bank. Such counsel shall be reasonably acceptable to
the Bank and the Executive; shall promptly prepare the foregoing opinion, but in
no event later than thirty (30) days from the Date of Termination; and may use
such actuaries as such counsel deems necessary or advisable for the purpose.
Nothing contained herein shall result in a reduction of any payments or benefits
to which the Executive may be entitled upon termination of employment under any
circumstances other than as specified in this Section 3, or a reduction in the
payments and benefits specified in Section 2 below zero.

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      4. 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, except as
otherwise provided herein, 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.

      (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 Bank pursuant to employee benefits plans of
the Bank or the Corporation or otherwise.

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

      6. SEVERABILITY. If any term, provision, paragraph or section of this
Agreement shall be determined by a court of competent jurisdiction to be invalid
or unenforceable for any reason, such determination shall not effect the
remaining terms, provisions or paragraphs or sections of this Agreement which
shall continue to be given full force and effect. If any term, provision,
paragraph or section of this Agreement shall be determined by a court of
competent jurisdiction to be unenforceable because of the duration thereof or
the geographical area included therein, the parties hereby expressly agree that
the court making such determination shall have the power to reduce the duration
and/or restrict the geographical areas of such term, provision, paragraph or
section and/or to delete such specific works or phrases which the court shall
deem necessary to permit enforcement of such term, provision, paragraph or
section in restricted form. Should any court of competent jurisdiction find any
term, provision, paragraph or section of this Agreement invalid or
unenforceable, or enforceable only in restricted form, then any such finding
shall apply only to the jurisdiction of such Court and shall not serve to alter
or amend this Agreement in any other jurisdiction.

      7. ASSIGNABILITY. The Bank may assign this Agreement and their rights and
obligations hereunder in whole, but not in part, to any corporation, bank or
other entity with or into which the Bank or Corporation may hereafter merge or
consolidate or to which the Bank or the Corporation may transfer all or
substantially all of their assets, if in any such case said corporation, bank or
other entity shall by operation of laws or expressly in writing assume all
obligations of the Bank 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.

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

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         To the Bank:             President
                                  Laurel Capital Group, Inc.
                                  2724 Harts Run Road
                                  Allison Park, Pennsylvania 15101

         To the Executive:        Robert A. Stephens
                                  207 Oak Leaf Drive
                                  Mars, PA 16046

      9. AMENDMENT; WAIVER. No provisions of this Agreement may be modified,
waived or discharged unless such waiver, modification or discharge is agreed to
in writing signed by the Executive and such officer or officers as may be
specifically designated by the Boards of Directors of the Bank to sign on their
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.

      10. 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. Any actions brought with respect to this Agreement or performance
of services hereunder may be brought only in the state or federal courts of
Allegheny County, Pennsylvania and the parties consent to the jurisdiction and
venue therein.

      11. NATURE OF EMPLOYMENT AND OBLIGATIONS.

      (a) Nothing contained herein shall be deemed to create other than a
terminable at will employment relationship between the Bank and the Executive,
and the Bank may terminate the Executive's employment at any time, subject to
providing any payments specified herein in accordance with the terms hereof.

      (b) Nothing contained herein shall create or require the Bank 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 Bank
hereunder, such right shall be no greater than the right of any unsecured
general creditor of the Bank.

      12. TERM OF AGREEMENT. The term of this Agreement shall be for two (2)
years, commencing as of July 1, 2003 (the "Effective Date"). Commencing on the
first anniversary of the Effective Date, the term of this Agreement shall extend
for an additional year on each annual anniversary of the Effective Date of this
Agreement until such time as the Board of Trustees of the Bank or the Executive
give notice in accordance with the terms of Section 8 hereof of its or his
election, respectively, not to extend the term of this Agreement. As a
consequence, subsequent to the first anniversary of the Effective Date, the
remaining term of this Agreement

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will be between one (1) and two (2) years. Such written notice of the election
not to extend must be given 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.

      13. 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.

      14. 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.

      15. 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. Section
1828(k)) and any regulations promulgated thereunder, including 12 C.F.R. Part
359.

      16. ENTIRE AGREEMENT. This Agreement embodies the entire agreement between
the Bank and the Executive with respect to the matters agreed to herein. All
prior agreements, if any, between the Bank and the Executive with respect to the
matters agreed to herein are hereby superseded and shall have no force or
effect.

      IN WITNESS WHEREOF, this Agreement has been executed as of the date first
above written.

Attest:                           LAUREL CAPITAL GROUP, INC.

______________________________    By:  _________________________________________
John A. Howard, Jr., Secretary          Edwin R. Maus
                                        President and Chief Executive Officer

Witness:

______________________________    By:  _________________________________________
John A. Howard, Jr., Secretary          Robert A. Stephens
                                        Senior Vice President

                                       7<PAGE>

                                                                   EXHIBIT 10.10

                           LAUREL CAPITAL GROUP, INC.
                           DEFERRED COMPENSATION PLAN

      Whereas, certain of the management employees (the "Employees") of Laurel
Capital Group, Inc., a Pennsylvania corporation (the "Company") and its
subsidiary, Laurel Savings Bank (the "Bank"), have contributed materially to the
growth, development and success of the Company and the Bank; and

      Whereas, the Company and the Bank desire to recognize and reward said
contribution and to provide incentive to the Employees to continue in the
employment of the Bank; and

      Whereas, effective as of December 29, 1994, the Company and the Bank have
established this Laurel Capital Group, Inc. Deferred Compensation Plan;

      Now, Therefore, this Deferred Compensation Plan provides as follows:

      1. Definitions. For purposes hereof, unless otherwise clearly apparent
from the context, the following phrases or terms shall have the following
indicated meanings:

            a. "Agreement" shall mean the agreement entered into between the
Bank and each Employee selected to participate in the Plan and who does in fact
elect to participate, as represented by this Plan and each Plan Agreement.

            b. "Beneficiary" shall mean those one or more persons designated
from time to time by the Participant in his Plan Agreement, and the amendments
thereto, who shall be entitled to receive payments hereunder in lieu of such
Participants.

            c. "Contingent Future Benefit" shall mean such amounts as have been
credited to a Participant's Deferred Compensation Account.

            d. "Employee" shall mean any person employed by the Company or the
Bank.

            e. "Participant" shall mean those one or more Employees who have
been selected under the provisions of Section 2 to participate in the Plan and
who have executed an agreement to participate in the Plan, or the Beneficiaries
of a deceased Participant.

            f. "Plan" shall mean the Laurel Capital Group, Inc. Deferred
Compensation Plan, which shall be evidenced by this instrument and by each Plan
Agreement.

            g. "Plan Agreement" shall mean the form of written agreement,
attached hereto as Exhibit A, which is entered into by and between the Bank and
each Employee.

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            h. "Retirement" and "Retire" shall mean severance from employment
with the Bank or the Company at or after the attainment of sixty-two (62) years
of age.

            i. "Spouse" shall mean the person to whom the Employee is lawfully
married as determined by the laws of Pennsylvania at the time of the payment of
the benefits, if any, to a Participant.

      2. Eligibility. Only those management Employees selected by the Bank, in
its sole discretion, shall be eligible to participate in this Plan. Upon
selection for participation, each Employee shall execute a written agreement to
participate in the Plan on a form prescribed by the Bank (hereinafter "the Plan
Agreement").

      3. Benefits. The Bank shall from time to time, and in accordance with
elections made by each Participant on his individual Deferred Compensation Plan
Agreement, determine the time and manner of making distributions of Contingent
Future Benefits in case of the retirement, resignation, disability or death of a
Participant or in the event of an emergency or necessity affecting the personal
or family affairs of any Participant or Beneficiary of a deceased Participant by
such methods as it shall in its sole discretion find appropriate for providing
incentive to the Participants for their continued service to the Bank and/or the
Company. Commencement of distribution in each case may be deferred not beyond
one month after the retirement, disability, or death of a Participant, or, in
the case of the resignation of a Participant, not beyond one month after such
Participant reaches the age of sixty-two (62). In any of these events, the Bank
shall in its sole discretion determine whether the Contingent Future Benefits
shall be payable to the Participant or his Beneficiaries in a lump sum or in the
form of an annuity equal in value to such actuarial reserve as has been
accumulated in the Participant's Deferred Compensation Account.

      4. Funding.

            a. The Bank shall establish an account for each Participant
(hereinafter the "Deferred Compensation Account") and shall deposit in said
account such amounts as the Bank in its sole discretion shall from time to time
determine to be appropriate, including amounts that compensate Participants for
reduced allocations to their accounts within the Bank's 401(k) Profit Sharing
Plan which result from the Participants' election to defer receipt of
compensation pursuant to this Plan. Nothing herein contained shall be construed
to deny the Bank the discretion to determine for each separate year the amount,
if any, to be credited to each Participant's account, nor shall the Plan be
construed to require the Bank to equalize contributions among Participants.

            b. Each Participant may direct the Trustee of the Deferred
Compensation Trust established by the Bank, in writing on a form provided to him
by the Trustee, to invest the amounts credited to his Deferred Compensation
Account as of such date in the following:

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            (i) THE EMPLOYER STOCK ACCOUNT which shall be invested by the
      Trustee in the publicly-traded common stock of Laurel Capital Group, Inc.

            (ii) THE SCHWAB 1000 FUND which shall be invested by the Trustee in
      the Schwab 1000 Fund which is designed to match the performance of the
      1,000 largest public companies in the United States, measured by market
      capitalization.

            (iii) THE SCHWAB SHORT/INTERMEDIATE GOVERNMENT BOND FUND which shall
      be invested by the Trustee in the Schwab Short/Intermediate Government
      Bond Fund which is designed to invest in a short to intermediate-term
      portfolio of government securities.

            (iv) THE SCHWAB MONEY MARKET FUND which shall be invested by the
      Trustee in the Schwab Money Market Fund which invests in money market
      instruments that mature in 12 months or less and which are believed to
      present minimal credit risk.

The Trustee shall carry out the Participants' directions as soon as practicable
after receiving such directions.

      A Participant may, subject to the provisions of the applicable law and
regulations, direct that shares of common stock held in his Employer Stock
Account be sold and the proceeds be invested in any of the other funds by
submitting new directions to the Trustee no later than March 1, June 1,
September 1 or December 1, which shall be implemented on the last business day
of the March, June, September or December, respectively, which immediately
follows such election.

      The Trustee shall invest in the Schwab Money Market Fund that part of each
Participant's Deferred Compensation Account and contributions over which a
Participant has the right to direct investment but over which the Participant
has not directed investment in accordance with this Section. Any cash dividends
paid with respect to shares of common stock of the Company which are held in a
Participant's account shall be invested by the Trustee in the Schwab Money
Market Fund. Any fees or other expenses incurred or assessed by the Trustee in
making directed investments under this Section, in excess of the normal fees or
expenses, shall be charged to the Participant's Deferred Compensation Account
for which such investment is made.

            c. All amounts deposited in the Deferred Compensation Account
together with interest accrued or asset appreciation shall be the property of
the Bank and shall be considered part of the general assets of the Bank
exclusively and no person entitled to any payment hereunder shall have any
claim, right, security or other interest in the Deferred Compensation Account or
in any fund, trust, account, insurance contract or asset of the Bank.

                                       3
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      5. Termination of Employment. Except as provided in Section 8 below, a
termination shall be treated as a resignation for the purposes of this Plan and
the benefits payable hereunder. However, neither the Plan nor Plan Agreement,
either singly or collectively, obligates the Bank to continue the employment of
a Participant as an executive or in any other capacity or limits the right of
the Bank or the Company at any time and for any reason to terminate a
Participant's employment. Termination of a Participant's employment with the
Bank or the Company for any reason, other than Retirement or death, shall
immediately terminate Participant's participation in the Plan and the Plan
Agreement and shall terminate all further obligations of either party to the
other, other than the Bank's and the Company's obligation to distribute the
Contingent Future Benefits, if any, which have been credited to a Participant's
account pursuant to Section 4. In no event shall the Plan or the Plan Agreement,
either singly or collectively, by their terms or implications constitute an
employment contract of any nature whatsoever between the Bank and/or the Company
and a Participant.

      6. Other Benefits and Agreements. The benefits provided for a Participant
and/or his Beneficiaries under the Plan are in addition to any other benefits
available to such Participant under any other plan or program for employees of
the Bank or any employer and the Plan shall supplement and shall not supersede,
modify or amend any other such plan or program except as may otherwise be
expressly provided. Benefits under the Plan shall not be considered compensation
for the purpose of computing contributions or benefits under any plan maintained
by the Bank or the Company which is qualified as tax exempt under the Internal
Revenue Code of 1986, as amended.

      7. Restrictions on Alienation of Benefits. No right or benefit under the
Plan or a Plan Agreement shall be subject to anticipation, alienation, sale,
assignment, pledge, encumbrance or charge, and any attempt to anticipate,
alienate, sell, assign, pledge, encumber or charge the same shall be void. No
right or benefit hereunder shall in any manner be liable for or subject to the
debts, contracts, liabilities, or torts of the person entitled to such benefit.

      8. Termination of Benefits. Notwithstanding anything herein contained to
the contrary, no payment of any then unpaid retirement or death benefit herein
provided shall be made, and all rights under the Plan and the Plan Agreement of
the Participant, his surviving Beneficiary, executors or administrators, or any
other person, to receive benefits shall be forfeited if it is determined that
the Participant has engaged in any substantial misconduct, or if the Participant
has been convicted of a felony which misconduct or conviction has a significant
adverse effect on the Company or the Bank.

      9. Miscellaneous.

            a. The Plan shall be binding upon the Company and the Bank and their
successors and assigns, and upon a Participant, his Beneficiaries, assigns,
heirs, executors and administrators.

                                       4
<PAGE>

            b. The Plan and Plan Agreement shall be governed by and construed
under the laws of the Commonwealth of Pennsylvania, as in effect at the time of
their adoption and execution, respectively.

            c. The Bank and the Company shall have the full power and authority
to interpret, construe and administer this Agreement. The Bank's and the
Company's interpretations and construction thereof, and actions thereunder,
including the making of any contributions to and the valuation of the Deferred
Compensation Account, or the amount and recipient of the payments to be made
therefrom, shall be binding and conclusive on all persons for all purposes.

            d. If the Bank or the Company shall find that any person to whom any
payment is payable under this Plan is unable to care for his affairs because of
illness or accident, or is a minor, any payment due (unless a prior claim
therefor shall have been made by a duly appointed guardian, committee or other
legal representative) may be paid to the Spouse, a child, a parent, or a brother
or sister, or to any person deemed by the Bank and the Company to have incurred
expense for such person who is otherwise entitled to have payment, in such
manner and proportions as the Bank and the Company may determine. Any such
payment shall be complete discharge of the liabilities of the Bank and the
Company under this Agreement.

                                         LAUREL CAPITAL GROUP, INC.

                                         BY:____________________________________

                                         LAUREL SAVINGS BANK

                                         BY:____________________________________

ATTEST:

_____________________________
Secretary

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