Document:

golden-bankagreement.htm

    
      

      

    

     

    
      Exhibit
        10.6

       

       

      ABINGTON
        BANK

      AMENDED
        AND RESTATED EMPLOYMENT AGREEMENT

      

      

      This
        AMENDED AND RESTATED EMPLOYMENT
        AGREEMENT (this “Agreement”), is made and entered into as of the 28th day of
        November
        2007, between Abington Savings Bank, a Pennsylvania chartered, stock-form
        savings bank doing business as “Abington Bank” (the “Bank” or the “Employer”),
        and Eric L. Golden (the “Executive”).

      

      

      WITNESSETH

      

      WHEREAS,
        the Executive is currently employed as Vice President and Controller of the
        Bank, and the Executive and the Bank have previously entered into an employment
        agreement dated August 8, 2007 (the “Prior Agreement”);

      

      WHEREAS,
        the Bank desires to amend and
        restate the Prior Agreement in order to make changes to comply with Section
        409A
        of the Code (as defined herein), as well as certain other changes;

      

      WHEREAS,
        the Bank desires to be ensured
        of the Executive’s continued participation in the business of the Bank;
        and

      

      WHEREAS,
        in order to induce the
        Executive to remain in the employ of the Bank and in consideration of the
        Executive 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 mutual agreements herein contained, the Bank and the Executive
        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)           Base
        Salary.  “Base Salary” shall have the meaning set forth in
        Section 3(a) hereof.

      

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

      

      (c)           Change
        in Control.  “Change in Control” shall mean a change in the
        ownership of the Corporation or the Bank, a change in the effective control
        of
        the Corporation or the Bank or a change in the ownership of a substantial
        portion of the assets of the Corporation or the Bank, in each case as provided
        under Section 409A of the Code and the regulations thereunder.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

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

      

      (e)           Corporation.  “Corporation”
        shall mean Abington Bancorp, Inc., a Pennsylvania corporation, or any successor
        thereto.

      

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

      

      (g)           Disability.  “Disability”
        shall mean the Executive (i) is unable to engage in any substantial gainful
        activity by reason of any medically determinable physical or mental impairment
        which can be expected to result in death or can be expected to last for a
        continuous period of not less than 12 months, or (ii) is, by reason of any
        medically determinable physical or mental impairment which can be expected
        to
        result in death or can be expected to last for a continuous period of not
        less
        than 12 months, receiving income replacement benefits for a period of not
        less
        than three months under an accident and health plan covering employees of
        the
        Employer.

      

      (h)           Good
        Reason.  Termination by the Executive of the Executive’s
        employment for “Good Reason” shall mean termination by the Executive based on
        the occurrence of any of the following events:

      

      
        	
                 

              	
                (i)

              	
                any
                  material breach of this Agreement by the Employer, including without
                  limitation any of the following: (A) a material diminution in the
                  Executive’s base compensation, (B) a material diminution in the
                  Executive’s authority, duties or responsibilities, or (C) a material
                  diminution in the authority, duties or responsibilities of the
                  officer to
                  whom the Executive is required to report,
                  or

              

      

      

      
        	
                 

              	
                (ii)

              	
                any
                  material change in the geographic location at which the Executive
                  must
                  perform his services under this
                  Agreement;

              

      

      

      provided,
        however, that prior to any termination of employment for Good Reason, the
        Executive must first provide written notice to the Employer within ninety
        (90)
        days of the initial existence of the condition, describing the existence
        of such
        condition, and the Employer shall thereafter have the right to remedy the
        condition within thirty (30) days of the date the Employer received the written
        notice from the Executive.  If the Employer remedies the condition
        within such thirty (30) day cure period, then no Good Reason shall be deemed
        to
        exist with respect to such condition.  If the Employer does not remedy
        the condition within such thirty (30) day cure period, then the Executive
        may
        deliver a Notice of Termination for Good Reason at any time within sixty
        (60)
        days following the expiration of such cure period.

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

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

      

      (j)           Notice
        of Termination.  Any purported termination of the Executive’s
        employment by the Employer 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 the Executive’s employment under the provision so
        indicated, (iii) specifies a Date of Termination, which shall be not less
        than
        fifteen (15) nor more than ninety (90) days after such Notice of Termination
        is
        given, except in the case of the Employer’s termination of the Executive’s
        employment for Cause, which shall be effective immediately; and (iv) is given
        in
        the manner specified in Section 10 hereof.

      

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

      

      2.           Term
        of Employment.

      

      (a)           The
        Employer hereby employs the Executive as Vice President and Controller, and
        the
        Executive hereby accepts said employment and agrees to render such services
        to
        the Employer on the terms and conditions set forth in this
        Agreement.  Subject to the terms hereof, this Agreement shall
        terminate on December 31, 2009.  Beginning on December 31, 2007 and on
        each December 31 thereafter, the term of this Agreement shall be extended
        for a
        period of one additional year provided that the Employer has not given notice
        to
        the Executive in writing at least 30 days prior to such day that the term
        of
        this Agreement shall not be extended further and/or the Executive has not
        given
        notice to the Employer of his election not to extend the term at least thirty
        (30) days prior to any such December 31.  If any party gives timely
        notice that the term will not be extended as of any such December 31, then
        this
        Agreement shall terminate at the conclusion of its remaining
        term.  References herein to the term of this Agreement shall refer
        both to the initial term and successive terms.

      

      (b)           During
        the term of this Agreement, the Executive shall perform such executive services
        for the Employer as is consistent with his title of Vice President and
        Controller and from time to time assigned to him by the Employer’s Board of
        Directors.

      

      3.           Compensation
        and Benefits.

      

      (a)           The
        Employer shall compensate and pay the Executive for his services during the
        term
        of this Agreement at a minimum base salary of $82,500 per year (“Base Salary”),
        which may be increased from time to time in such amounts as may be determined
        by
        the Board of Directors of the Employer and may not be decreased without the
        Executive’s express written consent.  In addition to his Base Salary,
        the Executive shall be entitled to receive during the term of this Agreement
        such bonus payments as may be determined by the Board of Directors of the
        Employer.

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

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

      

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

      

      4.           Expenses.  The
        Employer shall reimburse the Executive or otherwise provide for or pay for
        all
        reasonable expenses incurred by the Executive in furtherance of or in connection
        with the business of the Employer, including, but not by way of limitation,
        automobile and traveling expenses, subject to such reasonable documentation
        and
        other limitations as may be established by the Board of Directors of the
        Employer.  If such expenses are paid in the first instance by the
        Executive, the Employer shall reimburse the Executive therefor. Such
        reimbursement shall be paid promptly by the Employer and in any event no
        later
        than March 15 of the year immediately following the year in which such expenses
        were incurred.

      

      5.           Termination.

      

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

      

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

      

      (c)           Termination
        Due to Disability, Retirement or Death.  In the event that
        the Executive’s employment is terminated as a result of Disability, Retirement
        or the Executive’s death during the term of this Agreement, the Executive shall
        have no right pursuant to this Agreement to compensation or other benefits
        for
        any period after the applicable Date of Termination.

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      (d)           Involuntary
        or Good Reason Termination Prior to a Change in Control.  In
        the event that (i) the Executive’s employment is terminated by the Employer for
        other than Cause, Disability, Retirement or the Executive’s death or (ii) such
        employment is terminated by the Executive for Good Reason, in each case prior
        to
        a Change in Control, then the Employer shall:

      

      (A)           pay
        to the Executive in a lump sum as of the Date of Termination, a cash severance
        amount equal to the product of one (1) times the sum of (i) the Executive’s then
        current Base Salary, and (ii) the cash bonus paid to the Executive by the
        Employer for the calendar year preceding the Date of Termination;
        and

      

      (B)           maintain
        and provide for a period ending at the earlier of (i) twelve (12) months
        subsequent to the Date of Termination or (ii) the date of the Executive’s
        full-time employment by another employer (provided that the Executive is
        entitled under the terms of such employment to benefits substantially similar
        to
        those described in this subparagraph (B)), with the Executive responsible
        for
        paying the same share of any premiums, co-payments or deductibles as if he
        was
        still an employee, the Executive’s continued participation in all group
        insurance, life insurance, health and accident, and disability insurance
        coverage offered by the Employer in which the Executive was participating
        immediately prior to the Date of Termination; provided that any insurance
        premiums payable by the Employer or any successors pursuant to this Section
        5(d)(B) shall be payable at such times and in such amounts as if the Executive
        was still an employee of the Employer, subject to any increases in such amounts
        imposed by the insurance company or COBRA, and the amount of insurance premiums
        required to be paid by the Employer in any taxable year shall not affect
        the
        amount of insurance premiums required to be paid by the Employer in any other
        taxable year; and provided further that if the Executive’s participation in any
        group insurance plan is barred, the Employer shall arrange to provide the
        Executive with insurance benefits substantially similar to those which the
        Executive was entitled to receive under such group insurance plan at no
        additional cost to the Executive; and

      

      (C)           pay
        to the Executive, in a lump sum as of the Date of Termination, a cash amount
        equal to the projected cost to the Employer of providing benefits to the
        Executive for a period of twelve (12) months pursuant to any other employee
        benefit plans, programs or arrangements offered by the Employer in which
        the
        Executive was entitled to participate immediately prior to the Date of
        Termination (other than cash bonus plans, retirement plans or stock compensation
        plans of the Employer or the Corporation), with the projected cost to the
        Employer to be based on the costs incurred for the calendar year immediately
        preceding the year in which the Date of Termination occurs and with any
        automobile-related costs to exclude any depreciation on Bank-owned
        automobiles.

      

      (e)           Involuntary
        or Good Reason Termination Concurrently with or Subsequent to a Change in
        Control.  In the event that (i) the Executive’s employment is
        terminated by the Employer for other than Cause, Disability, Retirement or
        the
        Executive’s death or (ii) such employment is terminated by the Executive for
        Good Reason, in each case either concurrently with or subsequent to a Change
        in
        Control, then the Employer shall, subject to the provisions of Section 6
        hereof,
        if applicable,

      

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      (A)           pay
        to the Executive, in a lump sum as of the Date of Termination, a cash severance
        amount equal the product of two (2) times (i) the Executive’s then current Base
        Salary, and (ii) the cash bonus paid to the Executive by the Employer for
        the
        calendar year preceding the Date of Termination; and

      

      (B)           maintain
        and provide for a period ending at the earlier of (i) twenty-four (24) months
        subsequent to the Date of Termination or (ii) the date of the Executive’s
        full-time employment by another employer (provided that the Executive is
        entitled under the terms of such employment to benefits substantially similar
        to
        those described in this subparagraph (B)), with the Executive responsible
        for
        paying the same share of any premiums, co-payments or deductibles as if he
        was
        still an employee, the Executive’s continued participation in all group
        insurance, life insurance, health and accident, and disability insurance
        coverage offered by the Employer in which the Executive was participating
        immediately prior to the Date of Termination; provided that any insurance
        premiums payable by the Employer or any successors pursuant to this Section
        5(d)(B) shall be payable at such times and in such amounts as if the Executive
        was still an employee of the Employer, subject to any increases in such amounts
        imposed by the insurance company or COBRA, and the amount of insurance premiums
        required to be paid by the Employer in any taxable year shall not affect
        the
        amount of insurance premiums required to be paid by the Employer in any other
        taxable year; and provided further that if the Executive’s participation in any
        group insurance plan is barred, the Employer shall arrange to provide the
        Executive with insurance benefits substantially similar to those which the
        Executive was entitled to receive under such group insurance plan at no
        additional cost to the Executive; and

      

      (C)           pay
        to the Executive, in a lump sum as of the Date of Termination, a cash amount
        equal to the projected cost to the Employer of providing benefits to the
        Executive for a period of twenty-four (24) months pursuant to any other employee
        benefit plans, programs or arrangements offered by the Employer in which
        the
        Executive was entitled to participate immediately prior to the Date of
        Termination (other than cash bonus plans, retirement plans or stock compensation
        plans of the Employer or the Corporation), with the projected cost to the
        Employer to be based on the costs incurred for the calendar year immediately
        preceding the year in which the Date of Termination occurs and with any
        automobile-related costs to exclude any depreciation on Bank-owned
        automobiles.

      

      6.           Limitation
        of Benefits under Certain Circumstances.  If the payments and
        benefits pursuant to Section 5 hereof, either alone or together with other
        payments and benefits which the Executive has the right to receive from the
        Employer, would constitute a “parachute payment” under Section 280G of the Code,
        then the payments and benefits payable by the Employer pursuant to Section
        5
        hereof shall be reduced by the minimum amount necessary to result in no portion
        of the payments and benefits under Section 5 being non-deductible to the
        Employer pursuant to Section 280G of the Code and subject to the excise tax
        imposed under Section 4999 of the Code.  If the payments and benefits
        under Section 5 are required to be reduced, the cash severance shall be reduced
        first, followed by a reduction in the fringe benefits.  The
        determination of any reduction in the payments and benefits to be made pursuant
        to Section 5 shall be based upon the opinion of independent tax counsel selected
        by the Employer and paid by the Employer.  Such counsel shall promptly
        prepare the foregoing opinion, but in no event later than ten (10) 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 6, or a reduction in the payments and benefits
        specified in Section 5 below zero.

      

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      7.           Mitigation;
        Exclusivity of Benefits.

      

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

      

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

      

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

      

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

      

      10.           Notice.  For
        the purposes of this Agreement, notices and all other communications provided
        for in this Agreement shall be in writing and shall be deemed to have been
        duly
        given when delivered or mailed by certified or registered mail, return receipt
        requested, postage prepaid, addressed to the respective addresses set forth
        below:

       

      
        
          
            	
                    To
                      the Employer:

                  	 	
                    Board
                      of Directors

                  
	 	 	
                    Abington
                      Savings Bank

                  
	 	 	
                    180
                      Old York Road

                  
	 	 	
                    Jenkintown,
                      Pennsylvania

                  
	 	 	 
	
                    To
                      the Executive:

                  	 	
                    Eric
                      L. Golden

                  
	 	 	
                    At
                      the address last appearing on the personnel records of the
                      Employers

                  

          

        

         

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

      

      11.           Amendment;
        Waiver.  No provisions of this Agreement may be modified,
        waived or discharged unless such waiver, modification or discharge is agreed
        to
        in writing and signed by the Executive and such officer or officers as may
        be
        specifically designated by the Board of Directors of the Employer to sign
        on its
        behalf.  No waiver by any party hereto at any time of any breach by
        any other party hereto of, or compliance with, any condition or provision
        of
        this Agreement to be performed by such other party shall be deemed a waiver
        of
        similar or dissimilar provisions or conditions at the same or at any prior
        or
        subsequent time.  In addition, notwithstanding anything in this
        Agreement to the contrary, the Bank may amend in good faith any terms of
        this
        Agreement, including retroactively, in order to comply with Section 409A
        of the
        Code.

      

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

      

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

      

      14.           Arbitration.  Any
        controversy or claim arising out of or relating to this Agreement, or the
        breach
        thereof, shall be settled by arbitration in accordance with the rules then
        in
        effect for the American Arbitration Association, Philadelphia, Pennsylvania,
        and
        judgment upon the award rendered may be entered in any court having jurisdiction
        thereof.

      

      15.           Nature
        of Obligations.  Nothing contained herein shall create or
        require the Employer 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 Employer hereunder, such right shall be no greater
        than the right of any unsecured general creditor of the Employer.

      

      16.           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.

      

      17.           Changes
        in Statutes or Regulations.  If any statutory or regulatory
        provision referenced herein is subsequently changed or re-numbered, or is
        replaced by a separate provision, then the references in this Agreement to
        such
        statutory or regulatory provision shall be deemed to be a reference to such
        section as amended, re-numbered or replaced.

      

      18.           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.

      

      19.           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 FDIA (12 U.S.C. §1828(k)) and the regulations
        promulgated thereunder, including 12 C.F.R. Part 359.  In the event of
        the Executive’s termination of employment with the Bank for Cause, all
        employment relationships and managerial duties with the Bank shall immediately
        cease regardless of whether the Executive is in the employ of the Corporation
        following such termination.  Furthermore, following such termination
        for Cause, the Executive will not, directly or indirectly, influence or
        participate in the affairs or the operations of the Bank.

      

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      20.           Payment
        of Costs and Legal Fees and Reinstatement of Benefits.  In
        the event any dispute or controversy arising under or in connection with
        the
        Executive’s termination is resolved in favor of the Executive, whether by
        judgment, arbitration or settlement, the Executive shall be entitled to the
        payment of (a) all legal fees incurred by the Executive in resolving such
        dispute or controversy, and (b) any back-pay, including Base Salary, bonuses
        and
        any other cash compensation, fringe benefits and any compensation and benefits
        due to the Executive under this Agreement, within thirty (30) days following
        the
        date such judgment, arbitration or settlement becomes final and
        non-appealable.

      

      21.           Entire
        Agreement.  This Agreement embodies the entire agreement
        between the Employer and the Executive with respect to the matters agreed
        to
        herein.  All prior agreements between the Employer 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 is
        effective as of the date first written above.

      

      THIS
        AGREEMENT CONTAINS A BINDING
        ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE
        PARTIES.

       

    

    
      
        	
                Attest

              	
                ABINGTON
                  SAVINGS BANK

              
	 	 
	 	 
	/s/
                Edward W. Gormley 	 	
                By:

              	/s/
                Robert W. White 
	 	 	
                Robert
                  W. White

              
	 	 	
                President
                  and Chief Executive Officer

              

      

      

      
        	 	 
	 	
                EXECUTIVE

              
	 	 
	 	 
	 	
                By:

              	/s/
                Eric L. Golden 
	 	 	
                Eric
                  L. Golden

              

      

      

      
        
          
          

        

        
          9exdefercompplan.htm

     

    
      

      

    

    
      Exhibit
        10.7

       

       

      ABINGTON
        SAVINGS BANK

      EXECUTIVE
        DEFERRED COMPENSATION PLAN

      (AMENDED
        AND RESTATED AS OF NOVEMBER 28, 2007)

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ABINGTON
        SAVINGS BANK

      EXECUTIVE
        DEFERRED COMPENSATION PLAN

      (AMENDED
        AND RESTATED AS OF NOVEMBER 28, 2007)

      

      

      ARTICLE
        I

      

      PREAMBLE

      

      Effective
        as of November 28, 2007, the
        Abington Savings Bank (the “Bank” or the “Employer”) Executive Deferred
        Compensation Plan (the “Prior Plan”) was amended and restated in its
        entirety.  The effective date of the Prior Plan was January 1, 1993,
        which was subsequently amended and restated effective as of October 20, 2004
        and
        frozen as of January 1, 2005.  The amended and restated plan shall be
        known as the Abington Savings Bank Executive Deferred Compensation Plan (the
        “Plan”) which continues to remain frozen as of January 1, 2005 and shall in all
        respects be subject to the provisions set forth herein.  The purpose
        of this Plan is to provide specified benefits to a select group of management
        or
        highly compensated employees.

      

      This
        Plan amends and restates the Prior
        Plan in its entirety as hereinafter set forth in order to comply with the
        requirements of Section 409A of the Internal Revenue Code of 1986, as amended
        (the “Code”), including the final regulations issued by the Internal Revenue
        Service in April 2007, with none of the benefits payable under this Plan
        to be
        deemed grandfathered for purposes of Section 409A of the Code.  The
        Plan has been and shall continue to be operated in compliance with Section
        409A
        of the Code.  The provisions of the Plan shall be construed to
        effectuate such intentions.

      

      The
        Bank has
        herein restated the Plan with the intention that the Plan shall at all times
        be
        characterized as a “top hat” plan of deferred compensation maintained for a
        select group of management or highly compensated employees, as described
        under
        Sections 201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement Income
        Security Act of 1974, as amended (“ERISA”).  The provisions of the
        Plan shall be construed to effectuate such intentions.

      

      

      ARTICLE
        II

      

      DEFINITIONS

      

      For
        the purposes of the Plan, the
        following words and phrases shall have the meanings indicated, unless the
        content clearly indicates otherwise:

      

      2.1           Accumulation
        Account.  “Accumulation Account” shall mean the account
        maintained on the books of the Employer for each Participant with respect
        to the
        Plan.  Each Participant’s Accumulation Amount shall consist of the
        following sub-Accounts: (i) Cash Account, a sub-account that is credited
        with
        all investments other than assets credited to the Stock Units Account; (ii)
        Stock Units Account, a sub-account that is credited with Stock Units; and
        (iii)
        such other sub-accounts as may be necessary to reflect such Plan Year’s
        allocation and such further sub-Accounts as the Committee may deem
        necessary.  The Stock Units Account (i) may not be diversified; (ii)
        must remain at all times credited with units that represent Company Stock;
        and
        (iii) must be distributed solely in the form of Company Stock.  A
        Participant’s Accumulation Account shall be utilized solely as a device for the
        measurement and determination of any benefits payable to the Participant
        pursuant to this Plan.  A Participant shall have no interest in his
        Accumulation Account, nor shall it constitute or be treated as a trust fund
        of
        any kind.

      

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      2.2           Base
        Salary.  “Base Salary” for a Plan Year shall mean the Base
        Salary payable to a Participant by the Employer in that Plan
        Year.  Base Salary shall exclude any bonus paid to a
        Participant.

      

      2.3           Beneficiary.  “Beneficiary”
        shall mean the person, persons or entity designated by the Participant as
        provided in Article VIII to receive any benefit payable under the Plan with
        respect to the Participant after his death.

      

      2.4           Board.  “Board”
        means the Board of Directors of the Employer.

      

      2.5           Change
        in Control.  “Change in Control” shall mean a change in the
        ownership of the Company or the Bank, a change in the effective control of
        the
        Company or the Bank or a change in the ownership of a substantial portion
        of the
        assets of the Company or the Bank, in each case as provided under Section
        409A
        of the Code and the regulations thereunder.

      

      2.6           Company.  “Company”
        means Abington Bancorp, Inc. or any successor thereto.

      

      2.7           Company
        Stock.  “Company Stock” means the common stock, $0.01 par
        value, of the Company.

      

      2.8           Code.  “Code”
        means the Internal Revenue Code of 1986, as amended.

      

      2.9           Committee.  “Committee”
        shall mean the Administration Committee.

      

      2.10         Deferral
        Benefit.  “Deferral Benefit” shall mean the benefit payable
        to a Participant (or his Beneficiary) under the Plan, as provided in Article
        VI.

      

      2.11         Determination
        Date.  “Determination Date” shall mean the date on which the
        amount of a Participant’s Accumulation Account is determined as provided in
        Article V.  The last day of each calendar year shall be a
        Determination Date.

      

      2.12         Disability
        or Disabled.  “Disability” or “Disabled” shall mean a
        Participant (i) is unable to engage in any substantial gainful activity by
        reason of any medically determinable physical or mental impairment which
        can be
        expected to result in death or can be expected to last for a continuous period
        of not less than twelve months; or (ii) is, by reason of any medically
        determinable physical or mental impairment which can be expected to result
        in
        death or can be expected to last for a continuous period of not less than
        twelve
        months, receiving income replacement benefits for a period of not less than
        three months under an accident and health plan covering employees of the
        Bank
        (or would have received such benefits if the Participant was eligible to
        participate in such plan).  The determination of the Board as to
        Disability shall be binding on a Participant.

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      2.13           Employee.  “Employee”
        shall mean an employee of the Employer.

      

      2.14           Participant.  “Participant”
        shall be an Employee of the Employer who is designated by the Committee to
        participate in the Plan.

      

      2.15           Plan
        Year.  “Plan Year” shall mean the calendar year commencing
        January 1 and  ending the following December 31st.

      

      2.16           Retirement
        Age.  “Retirement Age” shall mean the first day of the first
        month following the Participant’s sixty-fifth (65th )
        birthday.

      

      2.17           Retirement
        Date.  “Retirement Date” shall mean the date of a
        Participant’s Separation from Service after having attained Retirement
        Age.

      

      2.18           Separation
        from Service.  “Separation from Service” means a termination
        of a Participant’s services (whether as an employee or as an independent
        contractor) to the Company and the Bank for any reason other than
        death.  Whether a Separation from Service has occurred shall be
        determined in
        accordance with the requirements of Section 409A of the Code based on
        whether the facts and circumstances indicate that the Company, the Bank and
        the
        Participant reasonably anticipated that no further services would be performed
        after a certain date or that the level of bona fide services the Participant
        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.

      

      2.19           Spouse.  “Spouse”
        shall mean a Participant’s wife or husband who was lawfully married to the
        Participant.

      

      2.20.          Stock
        Units.  “Stock Units” shall represent shares of Company
        Stock, with each Stock Unit representing one share of Company
        Stock.

      

      ARTICLE
        III

      

      ADMINISTRATION

      

      3.1           Committee
        Duties.  The Board shall appoint a Committee of not less than
        three (3) members to administer and interpret the Plan.  Members of
        the Committee shall be selected by the Board in its sole discretion and any
        member of the Committee may be removed by the Board at any time, with or
        without
        cause.  Members of the Committee may be Participants under the Plan,
        but no member of the Committee who is a Participant shall vote on any matter
        relating to his or her own benefits.  The Committee shall have the
        authority to adopt, amend, interpret and enforce rules and regulations for
        the
        operation and administration of the Plan and decide or resolve any and all
        questions relating to the Plan.

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      3.2           Agents.  In
        the administration of the Plan, the Committee may, from time to time, employ
        agents and delegate to them such administrative duties as it sees fit and
        consult with counsel who may be counsel to the Employer.

      

      3.3           Binding
        Effect of Decisions.  Any decision or action of the Committee
        relating to the Plan shall be final, conclusive and binding upon all
        Participants, Beneficiaries and other persons having any interest in the
        Plan.

      

      

      ARTICLE
        IV

      

      PARTICIPATION 

       

      

      4.1   Plan
        Frozen. Notwithstanding anything herein to the contrary, any and
        all provisions of the Plan shall be interpreted consistent with the fact
        that
        the Plan has been frozen as of January 1, 2005 (including the freezing of
        participation in the Plan and contributions to the Plan as of January 1,
        2005).  No new Participants shall be added to the Plan on or after
        January 1, 2005, and no Base Salary or other compensation earned on or
        after January 1, 2005 shall be deferred pursuant to this Plan.

       

      

      ARTICLE
        V

      

      ACCUMULATION
        ACCOUNT

      

      5.1           Determination
        of Accumulation Account.  Amounts credited under this Plan
        will be credited to one or more bookkeeping accounts (including the Cash
        Account
        and/or the Stock Units Account) for the Participant in accordance with the
        Participant’s investment election (subject to the ability of the Committee to
        override the investment election at its sole discretion) on an investment
        election form supplied by the Bank (the “Investment Election Form”), a copy of
        which is attached as Appendix A.  The Participant’s ultimate deferred
        compensation payments shall be based on the aggregate value of the Cash Account
        and the aggregate number of Stock Units accrued in the Stock Units Account
        (and
        any other sub-accounts) determined as hereinafter set forth:

      

      (a)  A
        Participant may elect
        on an Investment Election Form that all or any part of amounts contributed
        be
        credited to the Cash Account.  All amounts credited to the Cash
        Account shall be credited with earnings at a rate (adjusted annually) equal
        to
        the average of the Employer’s average cost of funds and the average yield on the
        interest-earning assets for such Plan Year.

      

      (b)  A
        Participant may elect
        that all or any part of amounts contributed be credited to the Stock Units
        Account.  All amounts credited to the Stock Units Account shall be
        applied to the crediting of Stock Units.  The number of Stock Units
        credited to a Participant’s Stock Units Account shall equal the dollar amount
        credited to such account during the calendar quarter divided by the fair
        market
        value of one share of Company Stock as of the last business day of such calendar
        quarter.  Fractional Stock Units will be used.  Each Stock
        Unit shall be deemed to pay dividends as if it were one share of Company
        Stock,
        and any such deemed dividends will result in the crediting of additional
        Stock
        Units to the Stock Units Account as of the last business day of the calendar
        quarter in which such dividends are paid, with the number of Stock Units
        so
        credited to be calculated in the manner set forth above for contributions
        based
        on the fair market value of one share of Company Stock as of such
        date.  After the crediting of Stock Units to the Stock Units Account,
        subsequent fluctuations in the fair market value of the Company Stock shall
        not
        result in any change in the number of such Stock Units then credited to the
        Stock Units Account.

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      (c)  In
        the event of any
        change in the outstanding shares of the Company by reason of any stock dividend
        or split, recapitalization, merger, consolidation, spin-off, reorganization,
        combination or exchange of shares or other similar corporate change, then
        the
        Stock Units Account of each Participant shall be adjusted by the Committee
        in a
        reasonable manner to compensate for the change, and any such adjustment by
        the
        Committee shall be conclusive and binding for all purposes of the
        Plan.

      

      (d)  Neither
        a Participant
        nor the Committee are permitted to transfer amounts between the Cash Account
        and
        the Stock Units Account, with the exception that Participants were given
        the
        ability in connection with the mutual to stock conversion of the Bank to
        transfer amounts from the Cash Account to the Stock Units
        Account.   However, if a successor Investment Election Form is
        properly filed with and accepted by the Committee, such Investment Election
        Form
        may contain revised instructions as to the proportion of any future
        contributions to be credited to each of the Cash Account and the Stock Units
        Account, effective as provided in Section 5.1(e) of the Plan.

      

      (e)  An
        Investment Election
        Form shall continue in effect from calendar year to calendar year unless
        replaced by a subsequent Investment Election Form, with such new election
        to be
        effective as of the last day of the immediately following calendar
        quarter.

      

      5.2           Vesting
        and Forfeiture of Accumulation Account.  Each Participant
        shall at all times be 100% vested as to the balance of his or her Accumulation
        Account, except that the Accumulation Account is subject to forfeiture as
        set
        forth in Section 6.6 of the Plan.

      

      5.3           Statement
        of Accounts.  Within 90 days after the close of each Plan
        Year, the Committee shall submit to each Participant a statement in such
        form as
        the Committee deems desirable setting forth the balance as of the last day
        of
        the Plan Year in each Accumulation Account maintained for the
        Participant.

      

      

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      ARTICLE
        VI

      

      BENEFITS

      

      6.1           Deferral
        Benefits.  A Participant’s Deferral Benefits shall be an
        amount equal to the value of the Participant’s Accumulation Account as of the
        Determination Date immediately preceding the date of payment.  The
        Deferral Benefits shall be payable upon any of the following events indicated
        on
        the form used by the Participant to select his or her payment events (the
        “Payment Election Form”, a copy of which is attached as Appendix B) or, if more
        than one event is selected, upon the first to occur of the events
        selected:  (a) death, (b) Disability, (c) a Separation from Service
        for reasons other than death or Disability, (d) a specified date, which may
        be
        prior to a Separation from Service (i.e., an in-service distribution) or
        (e) an
        unforeseeable emergency as set forth in Section 6.3 below (collectively,
        the
“Payment Events”).  The Deferral Benefits shall be distributed as set
        forth in Articles VI and VII of this Plan.

      

      6.2           Death
        Benefit.  Upon the death of a Participant prior to a
        Separation from Service, the Beneficiary of the deceased Participant shall
        be
        paid a benefit amount equal to 100% of his Accumulation
        Account.  Payment of death benefits shall be in a single lump sum
        payment and shall be paid within 60 days after the Committee has received
        notification of a Participant’s death, unless the Participant otherwise elects
        pursuant to Article VII hereof.

      

      6.3           Unforeseeable
        Emergency.  Notwithstanding anything in the Plan to the
        contrary, in the event that, upon written petition of the
        Participant, the Committee determines, in its sole discretion, that the
        Participant has suffered an unforeseeable emergency, the Employer may thereupon
        pay to the Participant, within 60 days following such
        determination, such amount as it deems necessary to meet the unforeseeable
        emergency.  A distribution on account of an unforeseeable emergency
        may not be made to the extent that such emergency is or may be (1) relieved
        through reimbursement or compensation from insurance or otherwise or (2)
        by
        liquidation of the Participant’s assets, to the extent the liquidation of such
        assets would not cause severe financial hardship.  A payment under
        this Section 6.3 of the Plan may not be in excess of the Deferral Benefit
        to
        which the Participant would have been entitled pursuant to
        Section 6.1 of the Plan if the
        Participant had a Separation from Service on the date of
        such determination of unforeseeable emergency by the
        Committee.  Distributions because of an unforeseeable emergency must
        be limited to the amount reasonably necessary to satisfy the emergency need
        (which may include amounts necessary to pay any federal, state, local, or
        foreign income taxes or penalties reasonably anticipated to result from the
        distribution).  For purposes of the Plan, an unforeseeable
        emergency is a severe financial hardship to the Participant resulting from
        (a)
        an illness or accident of the Participant, the Participant’s spouse, or a
        dependent of the Participant (within the meaning of Section 152(a) of the
        Code),
        (b) loss of the Participant’s property due to
        casualty (including the need to rebuild a home following
        damage to a home not otherwise covered by insurance, for example, not as
        a
        result of a natural disaster), or (c) other extraordinary
        and unforeseeable circumstances arising as a result of events beyond the
        control
        of the Participant.

      

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      6.4           Withholding;
        Payroll Taxes.  To the extent required by the law in effect
        at the time payment(s) of Deferral Benefits are made, the Employer shall
        withhold from such payment(s) any taxes or other amounts required by law
        to be
        withheld.

      

      6.5           Determination
        of Plan Benefits.  A Participant’s Deferral Benefit shall be
        determined as of the Determination Date immediately preceding the date of
        payment of a benefit under this Plan.

      

      6.6           Forfeiture
        of Benefits.  Notwithstanding anything contained herein to
        the contrary, a Participant shall forfeit his or her right to receive any
        benefit from the Employer under this Plan if he or she shall engage in conduct
        intended to defraud the Employer or shall within one (1) year of termination
        of
        employment obtain employment with a banking institution which directly competes
        with the Employer in its geographical locale, being Montgomery, Bucks and
        Philadelphia counties.  This Section 6.6 of the Plan shall not be
        applicable on or after a Change in Control.

      

      

      ARTICLE
        VII

      

      DISTRIBUTIONS
        AND CHANGES IN PAYMENT ELECTIONS

      

      7.1           General.  A
        Participant’s Accumulation Account may not be distributed prior to any of the
        Payment Events set forth in Section 6.1.  The amounts credited to a
        Participant’s Accumulation Account shall be distributed to a Participant as
        indicated on the Participant’s Payment Election Form, a copy of which is
        attached as Appendix B.  Any distribution from the Stock Units Account
        must be solely in the form of whole shares of Company Common Stock and cash
        will
        not be distributed in lieu of fractional shares.  The form of benefit
        payment may be in a single lump sum payment or in annual or monthly installment
        payments not in excess of fifteen years, as specified on a Participant’s Payment
        Election Form.

      

      7.2           Payment
        Dates.  If the Deferral Benefits are to be paid in a single
        lump sum payment, the lump sum shall be paid as follows:  (i) in the
        event of death or Disability, within 60 days after the Committee has received
        notification of the Participant’s death or Disability, or (ii) in the event of a
        Separation from Service for reasons other than death or disability, on the
        later
        of (A) January 1st of the
        year
        immediately following such Separation from Service or (B) the first day of
        the
        month following the lapse of six months after the date of the Separation
        from
        Service.  If the Deferral Benefits are to paid in monthly or annual
        installments, then the first monthly or annual installment shall be paid
        as
        follows:  (iii) in the event of death or Disability, within 60 days
        after the Committee has received notification of the Participant’s death or
        Disability, or (iv) in the event of a Separation from Service for reasons
        other
        than death or Disability, on the later of (A) January 1st of the
        year
        immediately following such Separation from Service or (B) the first day of
        the
        month following the lapse of six months after the date of the Separation
        from
        Service.  All subsequent annual installments shall be paid on January
        1st of each
        year, commencing with the year following the year in which the first annual
        installment was paid, and all subsequent monthly installments shall be paid
        on
        the first day of each succeeding month, in such case for the time period
        selected by the Participant on his Payment Election Form.

      

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

                 7.3           Amount
        of Each Installment.  The dollar amount of each installment
        paid to a Participant or his or her beneficiaries shall be determined by
        multiplying the value of the Participant’s Accumulation Account as of the
        Determination Date immediately preceding such payment by a
        fraction.  The numerator of the fraction shall in all cases be one,
        and the denominator of the fraction shall be the number of installments
        remaining to be paid to the Participant or his or her beneficiaries, including
        the installment for which the calculation is being made. For example, if
        a
        Participant elected to receive 10 annual installments, the amount of the
        first
        annual installment shall be 1/10th of the
        Participant’s Accumulation Account, the second annual installment shall be
        1/9th of the
        then remaining Accumulation Account, and so on.

      

                 7.4           Prior
        Elections.  Any payment elections made by a Participant
        before January 1, 2005 shall continue in effect until such time as the
        Participant makes a subsequent payment election pursuant to Section 7.5 or
        7.6
        below and such payment election becomes effective as set forth
        below.  If no payment election was previously made, then the current
        payment election shall be deemed to be as follows:  (i) in the event
        of a Separation from Service, a single lump sum payment as of the later of
        (A)
        January 1st of
        the year immediately following such Separation from Service or (B) the first
        day
        of the month following the lapse of six months after the date of the Separation
        from Service, and (ii) in the event of death, a single lump sum payment as
        set
        forth in Section 6.2 of the Plan.

      

                 7.5           Transitional
        Elections Prior to 2009.  On or before December 31, 2008, if
        a Participant wishes to change his payment election as to either the time
        or
        form of payment or both, the Participant may do so by completing a Payment
        Election Form approved by the Committee, provided that any such election
        (i)
        must be made prior to the Participant’s Separation from Service or death, (ii)
        shall not take effect before the date that is 12 months after the date the
        election is made and accepted by the Committee, (iii) does not cause a payment
        that would otherwise be made in the year of the election to be delayed to
        a
        later year, and (iv) does not accelerate into the year in which the election
        is
        made a payment that is otherwise scheduled to be made in a later
        year.

      

                 7.6           Changes
        in Payment Elections after 2008.  On or after January 1,
        2009, if a Participant wishes to change his or her payment election as to
        either
        the time or form of payment or both, the Participant may do so by completing
        a
        Payment Election Form approved by the Committee, provided that any such election
        (i) must be made prior to the Participant’s Separation from Service or death,
        (ii) must be made at least 12 months before the date on which any benefit
        payments as of a fixed date or pursuant to a fixed schedule are scheduled
        to
        commence, (iii) shall not take effect until at least 12 months after the
        date
        the election is made and accepted by the Committee, and (iv) for payments
        to be
        made other than upon death or Disability, must provide an additional deferral
        period of at least five years from the date such payment would otherwise
        have
        been made (or in the case of any installment payments treated as a single
        payment, five years from the date the first amount was scheduled to be
        paid).  For purposes of this Plan and clause (iv) above, all
        installment payments under this Plan shall be treated as a single
        payment.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      ARTICLE
        VIII

      

      BENEFICIARY
        DESIGNATION

      

      8.1           Beneficiary
        Designation.  Each Participant shall have the right, at any
        time, to designate any person, persons or entity as his Beneficiary or
        Beneficiaries (both primary and contingent) to whom any benefits under this
        Plan
        shall be paid after his death.  A Beneficiary designation shall be
        made by filing a written instrument (on a form prescribed by the Committee)
        with
        the Committee and shall become effective when received and accepted by the
        Committee.

      

      8.2           New
        Beneficiary Designation.  Any Beneficiary designation may be
        changed by a Participant by filing a new Beneficiary designation.  The
        filing of a new Beneficiary designation will supersede all Beneficiary
        designations previously filed.  Any final decree of divorce of a
        Participant subsequent to the date of filing of a Beneficiary designation
        shall
        revoke any Beneficiary designation in favor of the former spouse, provided
        the
        Employer shall have actual notice of such decree.

      

      8.3           No
        Beneficiary Designation.  If a Participant fails to designate
        a Beneficiary as provided above, or if his Beneficiary designation is revoked
        by
        divorce, or if all designated Beneficiaries predecease the Participant or
        die
        prior to complete payment of the Participant’s Plan Deferral Benefits, the
        Participant’s designated Beneficiary shall be deemed to be the person or persons
        surviving him in the first of the following classes in which there is a
        survivor:

      

      (a)           to
        the surviving Spouse;

      

      (b)           to
        the Participant’s children, per capita, except that if any child shall
        predecease the Participant but leave one or more children surviving, then
        such
        child or children shall be paid, per capita, the portion of the share otherwise
        payable to the Participant’s child; or

      

      (c)           the
        Participant’s estate.

      

      8.4           Effect
        of Payment.  The payment of a Participant’s vested benefit to
        the deemed Beneficiary shall completely discharge the Employer’s obligations to
        the Participant or the Participant’s Beneficiary under this Plan.

      

      8.5           Effect
        of Death After Separation from Service.  Upon the death of a
        Participant after Separation from Service, the Beneficiary shall be paid
        any
        unpaid balance of the Participant’s Deferral Benefits at such time or times and
        in such amount or amounts as if the Participant had not died.

      

      ARTICLE
        IX

      

      AMENDMENT
        AND TERMINATION OF PLAN

      

      9.1           Amendment.
        The Board may at any time and from time to time amend, suspend or terminate
        this
        Plan or a Participant’s participation therein; provided,
        however, that no amendment,
        suspension or termination may impair the rights of a Participant (or, in
        the
        case of a Participant’s death, his Beneficiary or estate) to receive payment of
        amounts credited to such Participant’s Accumulation Account(s) prior to the
        effective date of such amendment, suspension or
        termination.  Notwithstanding anything in the Plan to
        the contrary, the Board may amend in good faith any terms of the Plan, including
        retroactively, in order to comply with Section 409A of the Code.

      

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      9.2           Termination.
        Under no circumstances may the Plan permit the acceleration of the time or
        form
        of any payment under the Plan prior to the Payment Events specified herein,
        except as provided in this Section 9.2.  The Bank may, in its
        discretion, elect to terminate the Plan in any of the following three
        circumstances and accelerate the payment of the entire unpaid balance of
        the
        Participant’s Accumulation Account in accordance with Section 409A of the
        Code:

      

      
        	
                (i)  

              	
                the
                  Plan is irrevocably terminated within the 30 days preceding a Change
                  in
                  Control and (1) all arrangements sponsored by the Company and/or
                  the Bank
                  that would be aggregated with the Plan under Treasury Regulation
                  §1.409A-1(c)(2) are terminated, and (2) each Participant and all
                  participants under the other aggregated arrangements receive all
                  of their
                  benefits under the terminated arrangements within 12 months of
                  the date
                  the Company and the Bank irrevocably take all necessary action
                  to
                  terminate the Plan and the other aggregated
                  arrangements;

              

      

      

      
        	
                (ii)  

              	
                the
                  Plan is irrevocably terminated at a time that is not proximate
                  to a
                  downturn in the financial health of the Company or the Bank and
                  (1) all
                  arrangements sponsored by the Company and/or the Bank that would
                  be
                  aggregated with the Plan under Treasury Regulation §1.409A-1(c) if a
                  Participant participated in such arrangements are terminated, (2)
                  no
                  payments are made within 12 months of the date the Company and
                  the Bank
                  take all necessary action to irrevocably terminate the arrangements,
                  other
                  than payments that would be payable under the terms of the arrangements
                  if
                  the termination had not occurred; (3) all payments are made within
                  24
                  months of the date the Company and the Bank take all necessary
                  action to
                  irrevocably terminate the arrangements; and (4) neither the Company
                  nor
                  the Bank adopts a new arrangement that would be aggregated with
                  the Plan
                  under Treasury Regulation §1.409A-1(c) if a Participant participated in
                  both arrangements, at any time within three years following the
                  date the
                  Company and the Bank take all necessary action to irrevocably terminate
                  the Plan; or

              

      

      

      
        	
                (iii)  

              	
                the
                  Plan is terminated within 12 months of a corporate dissolution
                  taxed under
                  Section 331 of the Code, or with the approval of a bankruptcy court
                  pursuant to 11 U.S.C. §503(b)(1)(A), provided that the amounts deferred by
                  each Participant under the Plan are included in such Participant’s gross
                  income in the later of (1) the calendar year in which the termination
                  of
                  the Plan occurs, or (2) the first calendar year in which the payment
                  is
                  administratively practicable.

              

      

      

      9.3           ERISA;
        Code.  It is intended that this Plan be neither an “employee
        welfare benefit plan” nor an “employee pension benefit plan” for purposes of
        ERISA.  It is further intended that this Plan will not cause the
        interest of a Participant in the Plan to be includable in his (or his
        Beneficiary’s) gross income prior to his actual receipt of Deferral Benefits for
        purposes of the Code.  The Board shall also terminate the Plan if it
        determines, based on an opinion of legal counsel which is satisfactory to
        the
        Board, that either:

      

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      (i)           judicial
        authority or the opinion of the U.S. Department of Labor, Treasury Department
        or
        Internal Revenue Service (as expressed in proposed or final regulations,
        advisory opinions or rulings, or similar administrative announcements) creates
        a
        significant risk that the Plan will be held to be subject to ERISA or will
        cause
        current taxation to Participants under the Code, or

      

      (ii)           ERISA
        or the Code require the Plan to be amended in a way that creates a significant
        risk that the Plan will be held to be subject to ERISA or will cause current
        taxation to Participants under the Code and failure to so amend the Plan
        could
        subject the Employer to material penalties.  Upon any such
        termination, the Board shall transfer Employer and Participant rights and
        obligations under the Plan to a new plan to be established by the Employer
        which
        is not deemed to be subject to ERISA or to cause current taxation to
        Participants under the Code, but which is similar in other material respects
        to
        the Plan, if it is deemed reasonable, in the sole discretion of the
        Board.

      

      ARTICLE
        X

      

      MISCELLANEOUS

      

      10.1           Unsecured
        General Creditor.  Participants and their Beneficiaries,
        heirs, successors and assigns shall have no legal or equitable rights, interests
        or claims in any property or assets of the Employer held in any way as
        collateral security for the fulfilling of the obligations of the Bank under
        this
        Plan.  Any and all of the Employer’s assets shall be and remain the
        general, unpledged, unrestricted assets of the Employer.  The Bank’s
        obligations under the Plan shall be an unfunded and unsecured promise of
        the
        Bank to pay money in the future limited by the provisions in the Plan
        documents.

      

      10.2           Obligation
        to Employer.  If a Participant becomes entitled to a
        distribution of benefits under the Plan, and if at that time the Participant
        has
        outstanding any debt, obligation or other liability representing an amount
        (whether liquidated or unliquidated) owing to the Employer, or any direct
        or
        indirect parent, subsidiary or affiliate of the Employer, then the Employer
        may
        fully offset such amount against the amount of the Deferral Benefits otherwise
        payable to the Participant. Such determination shall be made by the
        Committee.

      

      10.3.          Nonassignability.  Neither
        a Participant nor any other person shall have any right to sell, assign,
        transfer, pledge, mortgage or otherwise encumber, transfer, hypothecate or
        convey in advance of actual receipt the Deferral Benefits payable hereunder,
        or
        any part thereof, which Deferral Benefits are expressly declared to be
        non-assignable and non-transferable.  No part of the Deferral Benefits
        shall, prior to actual payment, be subject to seizure or sequestration for
        the
        payment of any debts, judgments, alimony or separate maintenance owed by
        a
        Participant or any other person, nor be transferable by operation of law
        in the
        event of a Participant’s or any other person’s bankruptcy or
        insolvency.

      

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      10.4.         Not
        a Contract of Employment.  The terms and conditions of the
        Plan are not and shall not be deemed to constitute a contract of employment
        between the Employer and the Participant, and the Participant (or his
        Beneficiary) shall have no rights against the Employer except as may otherwise
        be specifically provided herein.  Moreover, nothing in the Plan shall
        be deemed to give a Participant the right to be retained in the employ of
        the
        Employer or to limit in any way the right of the Employer to discipline or
        discharge the Participant at any time.

      

      10.5.         Terms.  Whenever
        any words are used herein in the masculine, they shall be construed as though
        they were used in the feminine in all cases where such should so apply; and
        whenever any words are used herein in the singular or in the plural, they
        shall
        be construed as though they were used in the plural or the singular, as the
        case
        may be, in all cases where such should so apply.

      

      10.6.         Cooperation.  A
        Participant will cooperate with the Employer by furnishing any and all
        information requested by the Employer, by taking such physical examinations
        as
        the Employer may request and by taking such other action as may be requested
        by
        the Employer.

      

      10.7.         Captions.  The
        captions of the articles, sections and paragraphs of the Plan are for
        convenience only and shall not control or affect the meaning or construction
        of
        any of its provisions.

      

      10.8.         Taxes.  The
        Employer shall deduct from all benefit payments made to Participants and
        Beneficiaries all applicable federal, state and local taxes required by law
        to
        be withheld from such payments.

      

      10.9.         Governing
        Law.  The provisions of the Plan shall be construed and
        interpreted according to the laws of the Commonwealth of
        Pennsylvania.

      

      10.10.       Validity.  In
        any case where a provision of the Plan shall be held illegal or invalid for
        any
        reason, said illegality or invalidity shall not affect the remaining provisions,
        but the Plan shall be construed and enforced as if such illegal and invalid
        provision has never been inserted herein.

      

      10.11.        Form
        of Communication.  Any election, claim, notice of other
        communication required or permitted to be made by a Participant under the
        Plan
        shall be made in writing and in such form as shall be
        prescribed.  Such communication shall be effective upon mailing, if
        sent by first class mail, postage prepaid, and addressed
        to:  Corporate Secretary, Abington Savings Bank, 180 Old York Road,
        Jenkintown, PA 19046, or to such other address as the Committee may specify
        in a
        written communication to the Participants.  Such notice shall be
        deemed given as of the date of delivery or, if delivery is made by mail,
        as of
        the date shown on the postmark or the receipt for registration or
        certification.

       

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      10.12.         Successors.  The
        provisions of the Plan shall bind and inure to the benefit of the Employer
        and
        its successors and assigns.  The term successors as used herein shall
        include any corporate or other business entity which shall, whether by merger,
        consolidation, purchase or otherwise, acquire all or substantially all of
        the
        business and assets of the Employer and successors of the Employer or other
        business entity.

      

      10.13.         Claims
        Procedure.  Any claim for unpaid benefits deemed by a
        claimant to be owing must be made in writing to the Committee by the claimant
        or
        the claimant’s authorized representative within 60 days from the date such
        payments are not made.  The claim shall be reviewed by the
        Committee.  The Committee shall, within 90 days of the receipt of the
        claim, or 180 days if special circumstances exist, notify the claimant whether
        the claim has been denied.  If the claim is denied in whole or in
        part, the Committee shall set forth the specific reasons for the denial,
        including the provisions of this Agreement upon which the denial is
        based.  The notice shall also describe any additional information or
        material necessary to perfect the claim, including the reasons therefor,
        and
        state that a review of the denial may be obtained if desired.

      

      If
        a
        review of denial is requested, it shall be directed in writing by the claimant’s
        authorized representative to the Committee within 60 days after receipt by
        the
        claimant of the notice of denial.  (Failure of the Committee to take
        action within the above 90-day period shall be deemed a denial.)  In
        preparing for a review of a denial, the claimant or the claimant’s authorized
        representative may examine this Plan and any other related documents and
        submit
        issues and comments in writing.  The Committee applying its sole
        discretion shall then conduct the review and provide its written decision
        to the
        claimant within 60 days after receipt of the request for review.  The
        decision shall be in writing and shall include specific reasons for the
        decision, as well as specific references to the provisions of this Plan upon
        which the decision is based.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      ADOPTED
        pursuant to
        resolution of the Board of Directors of Abington Savings Bank, wherein an
        authorized officer of Abington Savings Bank shall execute in the name of
        and on
        behalf of Abington Savings Bank this Plan as of the 28th day of
        November
        2007.

      

      
        	
                Attest

              	
                ABINGTON
                  SAVINGS BANK

              
	 	 
	 	 
	/s/ Edward
                W. Gormley	 	 
	
                Name:

              	Edward
                W. Gormley 	 	
                By:

              	/s/
                Robert W. White 
	 	 	 Robert
                W. White
	 	 	 President
                and Chief Executive Officer

      

       

      
        
          
          

        

        
          14

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