Document:

EXHIBIT 10.2
<PAGE>

                                    AGREEMENT
                                    ---------

         Agreement made this 16 day of December 1998, between IRWIN BANK & TRUST
CO. with its  principal  office in Irwin,  Pennsylvania  ("Irwin"),  and J. CURT
GARDNER, an individual of Westmoreland County, Pennsylvania ("Gardner").

                                    PREAMBLE

         Gardner  has been  employed  by Irwin  for 36 years.  Gardner  has most
recently served as president of Irwin. Gardner has announced his retirement, and
Irwin has accepted  same  effective  December 31, 1998.  Therefore,  the parties
hereto, intending to be legally bound hereby, agree as follows:

                                    AGREEMENT

         1.       GARDNER's RETIREMENT.
                  --------------------

                  The employment  relationship  between  Gardner and Irwin shall
terminate  and be of no  further  force or  effect  on  December  31,  1998 with
Gardner's retirement from Irwin. Thereafter, Gardner will cease accruing time or
credit  (vesting  or  otherwise)  with  respect  to any  type of  Irwin  related
retirement plan.

         2.       FUTURE PAYMENTS.
                  ---------------

                  Irwin  will pay  Gardner  the  total  sum of  $100,000.  These
payments will be paid on a monthly basis  commencing  with the effective date of
this Agreement with the first $2,000.00  payment due December 31, 1998 or within
ten (10) days thereafter and shall continue  uninterrupted for a period of fifty
(50) consecutive  months.  Irwin will withhold  appropriate  federal,  state and
local income taxes from these payments.

         3.       MEDICAL INSURANCE COVERAGE.
                  --------------------------

                  Irwin will  provide  Gardner  and his wife with  hospital  and
major medical  insurance  coverage in accordance with the terms of such plans in
effect as of the  execution  date of this  Agreement.  Irwin shall  provide this
coverage until Gardner and his spouse attain age 65.

         4.       EXPENSES.
                  --------

                  Irwin shall pay or  reimburse  Gardner or cause  Gardner to be
paid or reimbursed,  upon presentment of suitable  vouchers,  for all reasonable
business and travel expenses which may be incurred or paid by Gardner  hereunder
so long as Gardner has obtained  prior  approval from the president of Irwin for
said expenses.  Gardner shall comply with such  restrictions and shall keep such
records as Irwin may deem  necessary  to meet the  requirements  of the Internal
Revenue Code and regulations promulgated thereunder.

<PAGE>

         5.       DIRECTORSHIPS.
                  -------------

                  (a)      Gardner agrees to continue to serve as a director  of
Irwin for as long as Gardner is permitted under Irwin's by-Laws.

                  (b) Gardner  agrees to serve and/or to accept  election and to
serve  as a  director  of IBT  Bancorp,  Inc.  ("IBTBI")  for so  long  as he is
permitted  under the  By-Laws  of  IBTBI,  if  elected  by the  shareholders  or
directors of IBTBI.

                  (c) As  compensation  for  services  rendered  by Gardner as a
director  of Irwin  or  IBTBI,  Gardner  shall  be paid in  accordance  with the
director compensation schedule in effect at those institutions.

                  (d) During  the term of this  Agreement,  Irwin  will  provide
Gardner  with an office  which  shall be in the third  floor  office of  Irwin's
offices in Irwin, Pennsylvania.

         6.       GARDNER'S DEATH.
                  ---------------

                  In the event  Gardner dies during the term of this  Agreement,
Irwin shall  continue to pay the balance of the payments due him as set forth in
2 to this wife, if living, otherwise to his estate, as well as continuing to pay
the hospital and major medical  insurance  coverage for Gardner's wife until she
attains age 65.

         7.       AMENDMENT OR ALTERATION.
                  -----------------------

                  No amendment  or  altercation  of the terms of this  Agreement
shall be valid unless made in writing and signed by both of the parties hereto.

         8.       GOVERNING LAW.
                  -------------

                  This   Agreement   shall  be  governed  by  the  laws  of  the
Commonwealth of  Pennsylvania  applicable to agreements made and to be performed
therein.

         9.       SEVERITY.
                  --------

                  The holding of any  provision of this  Agreement to be invalid
or unenforceable by a court of competent jurisdiction shall not affect any other
provision of this Agreement, which shall remain in full force and effect.

         10.      NOTICES.
                  -------

                  Any notices  required or permitted to be given hereunder shall
be  sufficient  if in writing,  and if delivered by hand or courier,  or sent by
certified mail,  return receipt  requested,  to the addresses set forth below or
such other  addresses as either party may from time to time designate in writing
to the other, and shall be deemed given as of the date of the delivery or at the

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expiration of three days in the event of a mailing.

                  Irwin Bank & Trust                 J. Curt Gardner
                  309 main Street                    631 Turnpike Road
                  Irwin, PA 15642                    North Huntingdon, PA 15642

         11.      WAIVER OR BREACH.
                  ----------------

                  It is agreed that a waiver by either  party of a breach of any
provision of this Agreement shall not operate,  or be construed,  as a waiver of
any subsequent breach by that same party.

         12.      ENTIRE AGREEMENT AND BINDING EFFECT.
                  -----------------------------------

                  This  Agreement  contains the entire  agreement of the parties
with respect to the subject matter hereof, supersedes all prior agreements, both
written and oral, between the parties with respect to the subject matter hereof,
and shall be binding  upon and inure to the  benefit or the  parties  hereto and
their  respective legal  representatives,  heirs,  distributors,  successors and
assigns.

         13.      FURTHER ASSURANCES.
                  ------------------

                  The  parties  agree to execute  and  deliver  all such  future
documents,  agreements and instruments and take such other and further action as
may be  necessary  or  appropriate  to carry out the purposes and intent of this
Agreement.

         14.      HEADINGS.
                  --------

                  The Section  headings  appearing in this Agreement are for the
purposes of each  reference and shall not be considered a part of this Agreement
or in any way modify, demand or affect its provisions.EXHIBIT 10.3
<PAGE>

                          IRWIN BANK AND TRUST COMPANY

                               DEATH BENEFIT ONLY
                           DEFERRED COMPENSATION PLAN
                                       FOR
                                 BANK DIRECTORS
                                 --------------

         1. Purpose.  The Irwin Bank and Trust Company,  a Pennsylvania  banking
corporation  (hereinafter  referred to as the "Bank"),  hereby  establishes  the
Bank's Death Benefit Only Deferred Compensation Plan (hereinafter referred to as
the "Plan") for the members of its Board of Directors  (hereinafter  referred to
collectively as the "Directors" and  individually as a "Director"),  under which
(i) the  Directors  may defer a portion  or all of the fees  payable to them for
services  rendered by them as  Directors,  and (ii) certain  Death  Benefits are
provided.  A Director may, but need not be, a full-time  employee of the Bank to
participate in this Plan.

         2. Definitions.

                           A.  Beneficiary:  One or more individuals or entities
designated  by a  Director  to receive  the  benefits  provided  under this Plan
payable  by  reason  of the  Director's  death.  If a  Director  makes  no valid
designation,  or if the designated  Beneficiary(s) fails to survive the Director
or fails to elect to receive  such  benefits,  then the  Director's  Beneficiary
shall be:

                           (i) The Director's surviving spouse, if any; or

                           (ii) If there is no surviving spouse,  the Director's
estate.

         If there is a surviving spouse,  but he or she dies prior to payment of
all of the benefits due  hereunder,  then the  remaining  benefits due hereunder
shall be administered and distributed as part of his or her estate.

         The Committee (as hereinafter defined) shall provide each Director with
a  Beneficiary  Designation  Form  on  which  the  Director  may  designate  his
Beneficiary(s).  The Director may change his Designated Beneficiary(s) by filing
written notice of such change with the Committee on the form specified therefor.

                  B. Board of  Directors:  The Board of  Directors  of the Bank.

                  C.  Committee:   The  committee  appointed  by  the  Board  of
Directors to administer this Plan, as further  described in Section 11 and other
provisions of this Plan.

                  D.  Compensation:  The fees  payable by the Bank to a Director
for services

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rendered as a Director. "Compensation" shall include a Director's retainer fees,
regular  meeting  fees and  committee  meeting  fees.  It shall not  include any
compensation or benefits received by a Director as an employee of the Bank.

                  E. Bank: The Irwin Bank and Trust Company and any successor by
merger, consolidation or otherwise.

                  F.  Death  Benefit:  The annual  death  benefit  described  in
Section  5  of  this  Plan  and  as  individually  determined  pursuant  to  the
Preliminary Agreements attached hereto as Exhibit "B".

                  G.  Deferral  Election.  The  election  by a Director to Defer
Compensation  under  this  Plan,  which  election  my be made only on a Deferral
Election Form provided by the Committee, as provided in Section 4 hereof.

                  H. Deferral Period:  The forty-eight  (48)  consecutive  month
period to which a Director's election to defer payment of Compensation  applies,
which commences  after the Committee's  receipt and acceptance of the Director's
Deferral Election Form.

                  I.  Deferral  Year:  Each of the four (4)  consecutive  twelve
(12)-month periods during the Deferral Period.

                  J. Deferred Income Benefit:  The deferred benefit described in
Section 6 of this  Plan and as  determined  pursuant  to the  Schedule  attached
hereto as Exhibit "A".

                  K. Preliminary Agreement:  The Agreements,  attached hereto as
Exhibit  "A",  by  which  each  Director's   preretirement  Death  Benefits  are
established  and each  Director  (by  execution  of his  individual  Preliminary
Agreement)  acknowledges  and  agrees to  certain  terms  related  to such Death
Benefits.

                  L. Retirement Age. Seventy (70) years of age.

         3. Director's Participation in Plan. A DIRECTOR MAY PARTICIPATE IN THIS
PLAN  IF  AND  ONLY  IF  HE  EXECUTES  THE   "ACKNOWLEDGMENT  AND  AGREEMENT  TO
PARTICIPATE" ON THE LAST PAGE HEREOF.  UNLESS AND UNTIL A DIRECTOR  EXECUTES THE
SAID  "ACKNOWLEDGMENT AND AGREEMENT TO PARTICIPATE," THE EXECUTION BY A DIRECTOR
OF ANY "PRELIMINARY  AGREEMENT,"  "INTERIM DIRECTOR FEES DEFERRAL  AGREEMENT" OR
ANY OTHER DOCUMENT SHALL NOT GIVE SUCH DIRECTOR ANY RIGHTS UNDER THIS PLAN.

         4. Deferral Election.

                  A. Election.  A Director may elect to defer payment of part or
all of his

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Compensation  by filing a completed  Deferral  Election  Form with the Committee
before the first day of the Deferral Period to which the election is to apply. A
Director may not defer less than One Thousand  Dollars  ($1,000) of Compensation
that is payable to the Director for services  rendered  after the effective date
of the Deferral  Election and after the Deferral Election Form is filed with and
accepted by the Committee.

                  B.  Deferral  Election  Forms.  The  Committee  shall  provide
Deferral  Election  Forms  for use by the  Directors  in making  their  deferral
elections  under this Plan. THE COMMITTEE  SHALL NOT ACCEPT ANY OTHER FORM FOR A
DIRECTOR'S ELECTION TO DEFER COMPENSATION UNDER THIS PLAN.

                  C. Acceptance by Committee.  A Director's  completed  Deferral
Election  Form shall be deemed to have been accepted by the Committee if, within
sixty (60) days after the date on which the Committee receives it, the Committee
does not notify the Director,  in writing,  that the Deferral  Election Form has
not been accepted.

                  D. Medical  Examination.  The Committee may require a Director
to undergo a medical  examination  as a condition  of accepting  the  Director's
election  to  defer  Compensation.  If a  Director  is not able to  provide  the
Committee  with evidence of good health that is  satisfactory  to the Committee,
then the Committee,  in its sole discretion,  shall determine  whether or not to
accept the Director's Deferral Election.

                  E. Retirement Age Exception. A Director may not elect to defer
payment of Compensation  if the Director will have attained  Retirement Age (the
age of seventy (70) years) prior to or at the beginning of the Deferral  Period,
except with the consent of the Committee, which consent shall not be withheld if
consistent with this Plan.

                  F.  Termination  of  Deferral  Election.  A  Director  may not
terminate his Deferral Election during a Deferral Period without the Committee's
consent. A termination of a Deferral Election shall be effective on or after the
date on which the Committee consents to the termination and shall relate only to
Compensation  payable for services  rendered  after the  effective  date of such
termination.

         5. Death Benefits.

                  A. In General.  If a Director dies, his  Beneficiary  shall be
paid the Director's Death Benefits in ten (10) equal annual  installments as set
forth in the  preliminary  Agreement  between such Director and the Bank that is
attached  hereto as Exhibit "A", unless the Committee,  in its sole  discretion,
determines  that the Director's  Death  Benefits  should be paid in another form
that is actuarially  equivalent to such ten (10)-year  payment.  If the Director
dies  more  than  ten  (10)  years  prior  to  attaining  Retirement  Age,  such
actuarially  equivalent  form may include  payment in equal annual  installments
until the Director would have attained Retirement Age.

                                       3
<PAGE>

                  B.  Change   in   Compensation   Deferred.  If  the  amount of
Compensation deferred by a Director during the second, third, or fourth Deferral
Year  exceeds or is less than the  amount of  Compensation  deferred  during the
first  Deferral  Year,  then the Death  Benefit to which the  Director  shall be
entitled with respect to the Deferral  Period shall be actuarially  increased or
decreased accordingly.

         6. Nature of Bank's  Obligation.  The Bank's  obligation under the Plan
shall be in the nature of an unfunded  and  unsecured  promise to pay.  The Bank
shall not be obligated under any circumstances to fund its financial obligations
under the Plan.  The Bank may  purchase a policy or policies of insurance on the
lives of Directors and will be the owner,  beneficiary  and premium payer of any
such insurance policies,  and neither the Director nor his Beneficiary(s)  shall
have any  ownership  rights  in such  policies  or any  proceeds  thereof.  Such
policies are not earmarked for the payment of any benefits under this Agreement,
provided  however that the Bank shall not be required to pay any death  benefits
if a denial of insurance  proceeds is based upon suicide or pre-existing  health
conditions  not  accurately  or completely  revealed by the Director.  Any other
assets which the Bank may acquire to help satisfy its financial obligations also
are  and  remain  general  assets  of the  Bank  subject  to the  claims  of its
creditors.  The Bank does not give,  nor does the Plan or the  Director  (or his
Beneficiary)  receive,  any  beneficial  ownership  interest in any asset of the
Bank. All rights of ownership in any such assets are and remain in the Bank.

         7.  Unsecured  Promise.  The rights of the Director and any  designated
Beneficiary(ies)  of the  Director,  or any other  person  claiming  through the
Director under this Plan, shall be solely those of an unsecured general creditor
of the Bank.  The Director or the  designated  Beneficiary(ies)  of the Director
shall have the right to receive  those  payments  specified  under the Plan only
from  the Bank and has no right  to look to any  general  or  specific  asset or
assets of the Bank or any specific or special property separate from the Bank to
satisfy a claim for benefit payments.

         The Director  agrees that he, his  designated  Beneficiary or any other
person  claiming  through  the  Director  shall  have no  rights  or  beneficial
ownership interest whatsoever in any general assets that the Bank may acquire or
use to assist it in satisfying its financial obligations under the Plan.

         Any such general assets used or acquired by the Bank in connection with
the  liabilities  it has  assumed  under the Plan shall not be deemed to be held
under  any  trust  for  the   benefit  of  the   Director   or  his   designated
Beneficiary(ies),  nor shall any such general assets be considered  security for
the  performance  of any  obligation of the Bank. Any such asset or assets shall
remain a general, unpledged and unrestricted asset(s) of the Bank.

         The Director's  participation,  if any, in the  acquisition of any such
general  asset  for the  Bank  shall  not  constitute  a  representation  to the
Director, his designated Beneficiary or any person claiming through or under the
Director that any of them has a specific or beneficial

                                       4
<PAGE>

interest in such general asset or assets.

         8. Independence of Benefits.  The Benefits payable under the Plan shall
be independent of and in addition to any other benefits or compensation  payable
under any other  agreement(s)  that now or hereafter may exist from time to time
between  the Bank and the  Director.  This  Agreement  shall  not be  deemed  to
constitute a contract of employment  between the parties  hereto,  nor shall any
provision hereof restrict the right of the Bank to dismiss the Director, with or
without cause,  nor restrict the right of the Director to terminate his services
with the Bank,  nor-restrict  the rights of an employee  Director or the Bank in
any way with respect to the employment relationship.

         9.  Nonassignable  Rights.  Except as expressly  provided in this Plan,
neither the Director nor his Beneficiary shall have the right to commute,  sell,
assign,  transfer  or  otherwise  convey  the  right  to  receive  any  payments
hereunder,  which payments and the rights thereto hereby are expressly  declared
to be nonassignable and nontransferable.

         10.  Committee.  The Board of  Directors  shall  appoint a Committee to
administer  the  Plan.  The  members  of the  Committee  may,  but  need not be,
Directors.  The Committee  shall  establish the forms and  procedures by which a
Director may make Deferral  Elections  under this Plan, and the Committee  shall
have the complete authority and discretion to administer and interpret the Plan.
The Committee shall exercise its discretion  according to its  determination  of
what is in the best  interests of both the Bank and the  Directors.  No Director
shall have any power to direct how the Committee  shall exercise its discretion.
All decisions of the Committee  concerning the administration and interpretation
of this Plan shall be final, conclusive and binding.

         11. Claims Procedure.

                  A. Benefits shall be paid in accordance with the provisions of
this Plan. The Director,  Beneficiary or any other person  claiming  through the
Director  (hereinafter  collectively referred to as the "Claimant") shall make a
written  request for the benefits  provided under this Plan.  This written claim
shall be mailed or delivered to the Named  Fiduciary  identified  in Section 13,
below.

                  B. If a claim is denied, either wholly or partially, notice of
the decision  shall be mailed to the Claimant  within a reasonable  time period.
This time  period  shall not exceed  ninety  (90) days after the  receipt of the
claim by the Named Fiduciary.

                  C. The Named  Fiduciary  shall provide written notice to every
Claimant  who is denied a claim for benefits  under this Plan.  The notice shall
set forth the following information:

                           (1) the specific reasons for the denial;

                                       5
<PAGE>

                           (2)  the  specific   reference   to  pertinent   Plan
provisions upon which the denial is based;

                           (3) a  description  of  any  additional  material  or
information  necessary for the Claimant to perfect the claim and an  explanation
of why such material or information is necessary; and

                           (4)  appropriate  information  and explanation of the
claims  procedure  under  this Plan so as to permit the  Claimant  to submit his
claim for review.

                  D. The  claims  procedure  under  this  Plan  shall  allow the
Claimant  a  reasonable  opportunity  to appeal a denial of claim and to receive
fair review of that decision by the Named Fiduciary, as follows:

                           (1) The Claimant  shall  exercise his right of appeal
by  submitting  a written  request for a review of the denied claim to the Named
Fiduciary.  This  written  request  for review  must be  submitted  to the Named
Fiduciary  not less than sixty (60) days after  receipt by the  Claimant  of the
written notice of denial.

                           (2) The  Claimant  shall  have the  following  rights
under this appeal procedure:

                                    (i)  to  request  a  review   upon   written
application to the Named Fiduciary;

                                    (ii) to review any other pertinent documents
respecting the Plan;

                                    (iii)  to  submit  issues  and  comments  in
writing;

                                    (iv) to request an extension of time to make
a written submission of issues and comments; and

                                    (v) to  request  that a  hearing  be held to
consider his appeal.

                  E. The  decision  on the review of the denied  claim  shall be
made promptly by the Named Fiduciary:

                            (1) not more than sixty (60) days after the  receipt
of the request for review if no hearing is held; or

                            (2) not more  than one  hundred  twenty  (120)  days
after  the  receipt  of the  request  for  review,  if an  extension  of time is
necessary in order to hold a hearing.

                                       6
<PAGE>

                                    (i)    If  an extension of time is necessary
in order to hold a hearing,  the Named Fiduciary shall give the Claimant written
notice of the extension of time and of the hearing.

                                    (ii)   The written notice of extension shall
indicate  that an  extension  of time will  occur in order to hold a hearing  on
Claimant's  appeal.  The notice also shall specify the place,  date, and time of
that hearing and the Claimant's  opportunity  to participate in the hearing.  It
also may include any other information the Named Fiduciary  believes relevant to
the Claimant's appeal.

                  F. The decision to hold a hearing to consider  the  Claimant's
appeal of the  denied  claim  shall be within the sole  discretion  of the Named
Fiduciary, whether or not the Claimant requests such a hearing.

                  G. The Named  Fiduciary's  decision to review shall be made in
writing and  provided  to the  Claimant  within the  specified  time  periods in
section  12(D),  above.  This  written  decision  on review  shall  contain  the
following information:

                           (1) the decision;

                           (2) the reasons for the decision; and

                           (3) specific references to the provisions of the Plan
upon which the decision is based.

         12.  Named  Fiduciary.  The Bank is the  "Named  Fiduciary"  (as herein
referenced) under this Plan.

         13.  Amendment and  Termination.  The Board of Directors shall have the
right,  in its sole  discretion,  to  modify  this  Plan from time to time or to
terminate the Plan entirely;  provided,  however,  that no such  modification or
termination  of the Plan shall divest any  Beneficiary of benefits to which such
Beneficiary is entitled as of the date of such  modification or termination.  If
at any time the  Federal  income tax laws as applied to the Plan make the income
tax treatment of the Death  Benefits  substantially  less  favorable to the Bank
and/or a Director  than is  contemplated  at the time this Plan is  established,
then a majority  of the  members of the Board of  Directors  may,  in their sole
discretion,  terminate  the Plan or direct the  Committee to adjust the benefits
accordingly.  The Committee may adjust Death  Benefits  payable  pursuant to the
authority granted herein.

         14. Binding  Effect.  This Agreement shall be binding upon and inure to
the benefit of the Bank, its  successors  and assigns,  and the Director and his
heirs and personal representatives.

                                       7
<PAGE>

         15. Successor Obligations. The Bank shall not merge or consolidate with
any bank or other third party ("entity"),  or reorganize,  unless and until such
succeeding or continuing  entity agrees to assume and discharge the  obligations
of the Bank under this Agreement.

         16. Severability. If any provision of this Plan is construed by a court
or  other  tribunal  of  competent  jurisdiction  to  be  invalid,   illegal  or
unenforceable,  then the  remaining  provisions  hereof  shall  not be  affected
thereby and shall be enforceable without regard thereto.

         17. Headings.  The headings and captions appearing in this document are
only for convenience only and are not intended to have substantive meaning.

         18.  Controlling  Law. This Plan is made under,  adopted and maintained
pursuant to and in accordance with the laws of the  Commonwealth of Pennsylvania
applicable to agreements made and to be performed solely therein,  except to the
extent that those laws are superseded by or are in conflict with the laws of the
United States of America.

         19. Number and Gender. Regardless of the number and gender specifically
used,  words used  herein  shall be deemed and  construed  to include  any other
number, singular or plural, and any other gender, masculine, feminine or neuter,
as the context requires.

         20.  Entire Plan.  This  document  and the  documents  and  instruments
executed  pursuant hereto constitute the entire plan with respect to the subject
matter  hereof  and  supersede  all prior  and  contemporaneous  agreements  and
understandings,  express  or  implied,  oral or  written,  with  respect to such
subject matter.

         21.  Effective  Date. This Plan shall be effective as of the 1ST day of
January, 1990.

                                       8

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