Document:

Exhibit 10.2

 

GREATER
DELAWARE VALLEY SAVINGS d/b/a  ALLIANCE BANK

ENDORSEMENT SPLIT DOLLAR

INSURANCE AGREEMENT

THIS ENDORSEMENT SPLIT DOLLAR INSURANCE AGREEMENT
(the “Agreement”) is made as of the 1st day of January, 2002, by and between Greater
Delaware Valley Savings d/b/a Alliance Bank, a Pennsylvania state bank (the “Bank”),
and _________ [Employee], an employee of the Bank (the “Employee”).

RECITALS:

In consideration of the faithful performance of
services by the Employee as an employee of the Bank, the Bank wishes to benefit
the Employee by entering into a split-dollar life insurance arrangement in
accordance with the terms and conditions set forth herein.

NOW, THEREFORE, the parties mutually agree as follows:

1.             General. 
This Agreement describes the terms and conditions of a split dollar
arrangement between the Bank and the Employee relating to certain life
insurance policies (collectively the “Policy”) issued by
_________________________ and ____________________ (collectively the “Insurer”)
on the life of the Employee in the initial face amount of ________________ and
________________, respectively.

2.             Acquisition of Policy; Payment of Premiums. The
parties shall cooperate in applying for and obtaining the Policy. The Policy
shall be issued to the Bank as the sole and exclusive owner of the Policy,
subject to an endorsement in favor of the Employee as hereinafter provided. The
Bank shall pay all of the net premiums due on the Policy and shall be solely
responsible for the calculation of the economic benefit to the Employee
resulting from its payment of such premiums.

3.             Endorsement.  (a) Upon issuance of the Policy, the Bank and
the Employee shall execute, in form acceptable to the parties and to the
Insurer, an endorsement to the Policy in favor of the Employee (the “Endorsement
Plan”). The Endorsement shall give the Employee the right, upon the Employee’s
death while this Agreement is in force, to designate the beneficiary (the “Beneficiary”)
of the proceeds from the Policy in excess of the Policy’s cash surrender value
(the “Endorsement Amount”). As between the parties hereto, in the event of any
conflict between the terms of the Endorsement Plan and this Agreement, the
terms of this Agreement shall prevail.

(b)           In no event shall the Endorsement grant to the Employee the
right to surrender the Policy or borrow against the cash surrender value of the
Policy or any other right or power constituting an incident of ownership in the
Policy. Except for the rights granted to the Employee in the Endorsement Plan,
the Bank shall have all of the rights of the owner under the Policy and shall
be entitled to exercise all of such rights, options and privileges without the
consent of the Employee. Without limiting the generality of the foregoing, the
Employee understands and agrees that the cash surrender value of the Policy
shall at all times be the property of the Bank.

4.             Death of the Employee. In the event of the
Employee’s death while this Agreement is in force, the Bank and the Beneficiary
shall take steps to collect the proceeds of the Policy by submitting the proper
claim forms to the Insurer. That portion of the proceeds of the Policy equal to
the Endorsement Amount shall be paid directly to the Beneficiary. That portion
of the proceeds of the Policy in excess of the Endorsement Amount shall be paid
to the beneficiary designated by the Bank.

 

5.
            Termination of Agreement.

(a)           Subject
to fulfillment of the obligations arising upon termination hereinafter set
forth, this Agreement shall terminate on the first to occur of the following
events (each referred to herein as a “Termination Event”):

(i)            delivery
of written notice of termination of this Agreement by the Bank to the Employee;

(ii)           delivery
of written notice of termination of this Agreement by the Employee to the Bank;
or

(iii)          at
the election of the Bank upon termination of the Employee’s service as a
Employee of the Bank for any reason by either the Bank or the Employee.

(b)           Within
thirty (30) business days following a Termination Event, the Bank, in its sole
discretion, shall take one of the following actions:

(i)
           surrender the Policy and
collect its cash surrender value;

(ii)           retain
the Policy, whereupon the Bank may, in its sole discretion, substitute a new
named insured under the Policy; or

(iii)          with
the consent of the Employee, transfer the Policy to the Employee on such terms
and conditions as the Bank and the Employee may agree.

(c)           At
any time following a Termination Event, the Bank may, without notice to the
Employee and without the Employee’s consent, cancel the Endorsement Plan. In
addition, the Employee shall cooperate in effecting any full or partial policy
surrender or policy loan requested by the Bank in connection with the Bank’s
exercise of any option described under subparagraph (b) above.

6.             Provisions
Regarding the Insurer. The parties acknowledge and agree as follows:

(a)           The
Insurer shall be bound only by the provisions of the Policy and any endorsement
thereto.

(b)           Any
payment made or actions taken by the Insurer in accordance with the provisions
of the Policy and any endorsement thereto shall fully discharge the Insurer
from all claims, suits and demands of all persons whatsoever.

(c)           The
Insurer shall not be deemed a party to, or to have notice of, this Agreement or
the provisions hereof and shall have no obligation to see to the performance of
the obligations of the parties hereunder.

7.             Disability
Waiver of Premiums. The parties may, by mutual agreement, add an agreement
or rider to the Policy providing for the waiver of premiums in the event of the
insured’s disability. Any additional premium attributable to such agreement or
rider shall be payable by the Employee or in such other manner as the parties
agree.

8.             Amendment.
This Agreement may be altered, amended or modified, including the addition of
any extra policy provisions, but only by a written instrument signed by all of
the parties.

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9.             Notice
Provision. Each notice and other communication hereunder shall be in
writing and shall be delivered or mailed by registered mail, return receipt
requested, and shall be deemed to have been given on the date of its delivery,
if delivered, and on the fifth full business day following the date of the
mailing, if mailed to each of the parties thereto at the following respective
addresses or such other address as may be specified in any notice delivered or
mailed as above provided:

(a)           If to the Bank to:

Greater Delaware Valley
Savings d/b/a Alliance Bank

___________________________________

___________________________________

Attention:  __________________________

(b)           If to the Employee:

To the address on record
with the Payroll Department of the Bank.

10.           Assignment.
A party may assign such party’s interests and obligations under this Agreement
at any time subject to the terms and conditions of this Agreement.

11.           Governing
Law. This Agreement shall be governed by and construed in accordance with
the laws of the Commonwealth of Pennsylvania, without regard to any principles
of conflicts of law of such Commonwealth.

12.           Entire
Agreement. This Agreement sets forth the entire agreement of the parties
with respect to the subject matter hereof. Any and all prior agreements or
understandings with respect to such matters are hereby superseded.

13.           Status
of Plan Under ERISA. The parties acknowledge and agree (a) that the split
dollar arrangement described in this Agreement is an “employee welfare benefit
plan” within the meaning of Section 3(1) of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”); (b) that the Employee participated
in the negotiation of such arrangement and had significant influence on its
design; and (c) that as a result, the arrangement is intended to qualify as a
plan maintained primarily for purposes of providing benefits for a select group
of management and highly compensated employees within the meaning of Labor
Regulations Section 2520.104-24.

14.           ERISA
Provisions. The following provisions are intended to meet the requirements
of ERISA and shall be interpreted in a manner consistent therewith:

(a)           Named Fiduciary. The “Named Fiduciary” is the Bank.

(b)           Claims Procedure. Any person claiming a benefit under the
Agreement (a “Claimant”) shall present the claim, in writing, to the Bank, and
the Bank shall respond in writing. If the claim is denied, the written notice
of denial shall state, in a manner calculated to be understood by the Claimant:

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(i)            The
specific reason or reasons for denial, with specific references to the
Agreement provisions on which the denial is based;

(ii)           A
description of any additional material or information necessary for the
Claimant to perfect his, her or its claim and an explanation of why such
material or information is necessary; and

(iii)          An explanation of the Agreement’s
claims review procedure.

The written notice denying or granting the Claimant’s
claim shall be provided to the Claimant within ninety (90) days after the Bank’s
receipt of the claim, unless special circumstances require an extension of time
for processing the claim. If such an extension is required, written notice of
the extension shall be furnished by the Bank to the Claimant within the initial
ninety (90) day period. Any extension notice shall indicate the special
circumstances requiring the extension and the date on which the Bank expects to
render a decision on the claim. Any claim not granted or denied within the
period noted above shall be deemed to have been denied.

Any Claimant whose claim is denied, or deemed to be
denied under the preceding sentence, or such Claimant’s authorized
representative, may, within sixty (60) days after the Claimant’s receipt of
notice of the denial, or after the date of the deemed denial, request a review
of the denial by notice given, in writing, to the Bank. Upon such a request for
review, the claim shall be reviewed by the Bank (or its designated
representative). In connection with the review, the Claimant may have
representation, may examine pertinent documents, and may submit issues and
comments in writing.

The decision on review normally shall be made within
sixty (60) days of the Bank’s receipt of the request for review. If an
extension of time is required due to special circumstances, the Claimant shall
be notified, in writing, by the Bank, and the time limit for the decision on review
shall be extended to one hundred twenty (120) days. The decision on review
shall be in writing and shall state, in a manner calculated to be understood by
the Claimant, the specific reasons for the decision and shall include
references to the relevant Agreement provisions on which the decision is based.
The written decision on review shall be given to the Claimant within the sixty
(60) day (or, if applicable, the one hundred twenty (120) day) time limit
discussed above. If the decision on review is not communicated to the Claimant
with the sixty (60) day (or, if applicable, the one hundred twenty (120) day)
period discussed above, the claim shall be deemed to have been denied upon
review. All decisions on review shall be final and binding with respect to all
concerned parties.

IN WITNESS WHEREOF, the parties have signed this
Agreement as of the day and year first above written.

	
  

  	
   

  	
  EMPLOYER:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GREATER DELAWARE VALLEY SAVINGS d/b/a 

  ALLIANCE BANK

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Printer Name of Employee

  
							

 

 4Exhibit 10.3

AGREEMENT BETWEEN

GREATER DELAWARE VALLEY SAVINGS BANK

(doing business as Alliance Bank)

and

[Dennis D.
Cirucci/Peter J. Meier]

THIS AGREEMENT is dated this 21st day of June 2001 between Greater
Delaware Valley Savings Bank, a Pennsylvania-chartered savings bank doing
business as Alliance Bank (the “Bank”), and [Dennis D.
Cirucci/Peter J. Meier] (the “Executive”).  The Bank is the majority owned subsidiary of
Greater Delaware Valley Holdings, A Mutual Company, a Pennsylvania-chartered
mutual holding company (the “MHC”). The MHC and the Bank are collectively
referred to hereinafter as the “Employers”.

WITNESSETH

WHEREAS, the Executive is presently an officer of
each of the Employers;

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

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

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

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

(a)           Annual Compensation.  The Executive’s “Average Annual Compensation”
for purposes of this Agreement shall be deemed to mean the average level of
compensation paid to the Executive by the Employers or any subsidiary thereof
during the most recent five taxable years preceding the Date of Termination and
which was either (i) included in the Executive’s gross income for tax purposes,
including but not limited to Base Salary, bonuses and amounts taxable to the
Executive under any qualified or non-qualified employee benefit plans of the
Employers, or (ii) deferred at the election of the Executive.

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

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

(d)           Change in Control of the
Bank.  “Change in Control of
the Bank” shall mean the occurrence of any of the following: (i) an event
that would be required to be reported in response to Item 1(a) of Form 8-K
or Item 6(e) of Schedule 14A of Regulation 14A pursuant to the Securities
Exchange Act of 1934, as amended

 

(“Exchange Act”), or any successor thereto, whether
or not any class of securities of the Bank is registered under the Exchange
Act; (ii) any “person” (as such term is used in Sections 13(d) and 14(d) of the
Exchange Act) other than the MHC is or becomes the “beneficial owner” (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Bank representing 20% or more of the combined voting power of
the Bank’s then outstanding securities; or (iii) during any period of three
consecutive years, individuals who at the beginning of such period constitute
the Board of Directors of the Bank 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 was approved by a vote of at least two-thirds of the directors then
still in office who were directors at the beginning of the period; provided, however, notwithstanding
anything to the contrary herein, a “Change in Control of the Bank” shall not be
deemed to have occurred if the MHC ceases to own at least a majority of all
issued and outstanding shares of common stock of the Bank in connection with a
reorganization of the MHC pursuant to which the MHC converts from mutual to
stock form in a transaction that does not involve a merger or combination with
any company which is not an affiliate of the MHC; provided, further, that a “Change in Control of the Bank”
will be deemed to have occurred if in connection with a reorganization, a
merger or business combination occurs with a company that is not an affiliate
of the MHC (an “Acquisition Transaction”) and less than majority of the Bank’s
Board of Directors immediately subsequent to the Acquisition Transaction is
comprised of members of the Bank’s Board of Directors immediately prior to such
Acquisition Transaction.

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

(f)            Date of Termination.  “Date of Termination” shall mean (i) if the
Executive’s employment is terminated for Cause or for Disability, the date 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 the Notice
of Termination.

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

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

(i)                                     Without the Executive’s express written consent,
the failure to elect or to re-elect or to appoint or to re-appoint the
Executive to the offices of [Chief Operating Officer/Chief
Financial Officer] of the Employers or a material adverse change
made by the Employers in the Executive’s functions, duties or responsibilities
as [Chief Operating Officer/Chief Financial Officer]
of the Employers 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 either of the Employers in the Executive’s base salary
as in effect immediately prior to the date of the Change in Control of the Bank
or as the same may be increased from time to time thereafter or, taken as a
whole, except to the extent permitted by Section 3(b) hereof, a reduction in
the package of fringe benefits provided to the Executive;

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

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

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

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

(j)            Notice of Termination.  Any purported termination of the Executive’s
employment by the 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 written “Notice of
Termination” to the other party hereto. 
For purposes of this Agreement, a “Notice of Termination” shall mean a
dated notice which (i) indicates the specific termination provision in this
Agreement relied upon, (ii) sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive’s
employment under the provision so indicated, (iii) specifies a Date of
Termination, which shall be not less than thirty (30) nor more than ninety (90)
days after such Notice of Termination is given, except in the case of the Bank’s
termination of the Executive’s employment for Cause, which shall be effective
immediately; and (iv) is given in the manner specified in Section 10 hereof.

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

2.             Term
of Employment.

(a)           The Bank hereby
employs the Executive as [Chief Operating Officer/Chief
Financial Officer], and the Executive hereby accepts said employment
and agrees to render such services to the Bank on the terms and conditions set
forth in this Agreement.  The term of
this Agreement shall be a period of three years commencing as of the date
hereof (the “Commencement Date”), subject to earlier termination as provided
herein.  Beginning on the first
anniversary of the Commencement Date, and on each annual anniversary
thereafter, the term of this Agreement shall be extended for a period of one
year (such that at any time the remaining term of this Agreement shall be from
two to three years) provided that neither the Bank nor Executive have given
notice to the other party hereto in writing at least 60 days prior to such day
that the term of this Agreement shall not be extended further.  Reference herein to the term of this Agreement
shall refer to both such initial term and such extended terms.  The Board of Directors of the Bank shall
review on a periodic basis (and no less frequently than annually) whether to
permit further extensions of the term of this Agreement.  If either party hereto 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.  As part of such review, the Board of
Directors shall consider all relevant factors, including the Executive’s
performance hereunder, and shall either expressly approve further extensions of
the term of this Agreement or decide to provide notice to the contrary.

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

3.             Compensation and Benefits.

(a)           The Bank shall compensate and pay the
Executive for his services during the term of this Agreement at a minimum base
salary of [$166,000.00/$114,500.00] per year (“Base
Salary”), which may be increased from time to time in such amounts as may be
determined by the Bank’s Board of Directors 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 Bank’s Board of Directors.

(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, restricted stock grant plan, employee stock
ownership, or other plans, benefits and privileges given to employees and
executives of the Employers, to the extent commensurate with his then duties
and responsibilities, as fixed by the Boards of Directors of the
Employers.  The Bank 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 Employers 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
Employers.  Nothing paid to the Executive
under any plan or arrangement presently in effect or made available in the
future shall be deemed to be in lieu of the salary payable to the Executive
pursuant to Section 3(a) hereof.

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

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

(e)           In
the event of the Executive’s death during the term of this Agreement, the Bank
shall provide to the Executive’s spouse until such spouse reaches age 65
continued medical and dental coverage substantially identical to the coverage maintained
by the Employers for the Executive immediately prior to his death.

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

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5.             Termination.

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

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

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

(d)           In
the event that (i) the Executive’s employment is terminated by the Bank for
other than Cause, Disability, Retirement or the Executive’s death or (ii) such
employment is terminated by the Executive (a) due to a material breach of this
Agreement by the Bank, which breach has not been cured within fifteen (15) days
after a written notice of non-compliance has been given by the Executive to the
Bank or (b) for Good Reason, then the Bank shall:

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

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

6.             Payment
of Additional Benefits under Certain Circumstances.

(a)           If
the payments and benefits pursuant to Section 5 hereof, either alone or
together with other payments and benefits which the Executive has the right to
receive from the Bank would constitute a “parachute payment” as defined in
Section 280G(b)(2) of the Code (the “Initial Parachute Payment”), then the Bank
shall pay to the Executive, in either thirty-six (36) equal monthly
installments beginning with the first

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business day of the month following the Date of Termination or in a
lump sum as of the Date of Termination (at the Executive’s election), a cash
amount equal to the sum of the following:

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

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

	
  GUP = 
  

  	
  Tax Rate

  
	
  1 - Tax Rate

  

 

The Tax Rate for purposes of
computing the GUP shall be the highest marginal federal and state income and
employment-related tax rate, including any applicable excise tax rate,
applicable to the Executive in the year in which the payment under clause (A)
above is made.

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

(c)           In each calendar
year that the Executive receives payments of benefits under this
Section 6, the Executive shall report on his state and federal income tax
returns such information as is consistent with the determination made by the
independent tax counsel or accountants of the Employers as described
above.  The Bank shall indemnify and hold
the Executive harmless from any and all losses, costs and expenses (including
without limitation, reasonable attorneys’ fees, interest, fines and penalties)
which the Executive incurs as a result of so reporting such information.  The Executive shall promptly notify the Bank
in writing whenever the Executive receives notice of the institution of a
judicial or administrative proceeding, formal or informal, in which the federal
tax treatment under Section 4999 of the Code of any amount paid or payable
under this Section 3 is being reviewed or is in dispute.  The Bank shall assume control at its expense
over all legal and accounting matters pertaining to such federal tax treatment
(except to the extent necessary or appropriate for the Executive to resolve any
such proceeding with respect to any matter unrelated to amounts paid or payable
pursuant to this Section 6) and the Executive shall cooperate fully with
the Employers in any such proceeding. 
The Executive shall not enter into any compromise or settlement or
otherwise prejudice any rights the Bank may have in connection therewith
without the prior consent of the Bank.

 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.

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

8.             Withholding.  All
payments required to be made by the 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.

9.             Assignability.  The
Bank 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 either of the Employers may hereafter merge or consolidate or to which
either of the Employers may transfer all or substantially all of its respective
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 Bank
hereunder as fully as if it had been originally made a party hereto, but may
not otherwise assign this Agreement or their 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 Bank:

  	
  Secretary

  	
   

  
	
   

  	
  Greater Delaware
  Valley Saving Bank

  	
   

  
	
   

  	
  (doing business
  as Alliance Bank)

  	
   

  
	
   

  	
  541 Lawrence
  Road

  	
   

  
	
   

  	
  Broomall,
  Pennsylvania 19008

  	
   

  
	
   

  	
   

  	
   

  
	
  To the
  Executive:

  	
   

  	
   

  

 

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 Bank’s Board of Directors to sign on
its behalf.  No waiver by any party
hereto at any time of any breach by any other party hereto of, or compliance
with, any condition or provision of this Agreement to be performed by such
other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time.

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

13.          Nature
of Obligations.  Nothing contained herein shall create or
require the Bank to create a trust of any kind to fund any benefits which may
be payable hereunder, and to the extent that the Executive

 7
 

 

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.

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

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

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

17.          Regulatory
Prohibition.  Notwithstanding any other provision of this
Agreement to the contrary, any payments made to the Executive pursuant to this
Agreement, or otherwise, are subject to and conditioned upon their compliance
with Section 18(k) of the Federal Deposit Insurance Act (12 U.S.C. ‘1828(k))
and the regulations promulgated thereunder, including 12 C.F.R. Part 359.

18.          Payment
of Costs and Legal Fees and Reinstatement of Benefits.  In
the event any dispute or controversy arising under or in connection with the
Executive’s termination is resolved in favor of the Executive, whether by
judgment, arbitration, or settlement, the Executive shall be entitled to the
payment of (a) all legal fees incurred by the Executive in resolving such
dispute or controversy, and (2) 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.

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

20.          Entire
Agreement.  This Agreement embodies the entire agreement
between the Bank and the Executive with respect to the matters agreed to
herein.  All prior agreements 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:

  	
   

  	
  GREATER DELAWARE VALLEY

  
	
   

  	
   

  	
  SAVINGS BANK

  
	
   

  	
   

  	
  (doing business as Alliance Bank)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Dolores A.
  DeBaecke, Secretary

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  

 

 8

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