Document:

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                                                                    EXHIBIT 10.1

                             MATRIA HEALTHCARE, INC.
                         LONG-TERM STOCK INCENTIVE PLAN

                           RESTRICTED STOCK AGREEMENT

         THIS AGREEMENT, entered into as of the Grant Date (as defined in
Section 1), by and between the Participant and Matria Healthcare, Inc. (the
"Company");

         WHEREAS, the Company maintains the Matria Healthcare, Inc. Long-Term
Incentive Plan (the "Plan"), which is incorporated into and forms a part of this
Agreement, and the Participant has been selected by the committee administering
the Plan (the "Committee") to receive a Restricted Stock Award under the Plan;

         NOW, THEREFORE, IT IS AGREED, by and between the Company and the
Participant, as follows:

         1. TERMS OF AWARD AND DEFINITIONS. The following terms used in this
Agreement shall have the meanings set forth in this Section 1:

                  (a) DATE OF TERMINATION. The Participant's "Date of
         Termination" shall be the first day occurring on or after the Grant
         Date on which the Participant is neither employed by the Company or any
         Affiliate, a director of the Company or any Affiliate, an independent
         contractor performing services for the Company or any Affiliate nor
         providing services as a consultant to the Company or any Affiliate;
         provided that a termination shall not be considered to have occurred
         while the Participant is on an approved leave of absence from the
         Company or any Affiliate.

                  (b) DESIGNATED BENEFICIARY. The "Designated Beneficiary" shall
         be the beneficiary or beneficiaries designated by the Participant in a
         writing filed with the Committee in such form and at such time as the
         Committee shall require.

                  (c) GRANT DATE. The "Grant Date" is ______________________.

                  (d) PARTICIPANT. The "Participant" is _______________________.

                  (e) RESTRICTED PERIOD. A "Restricted Period" is each period
         beginning on the Grant Date and ending on [specify each date on which
         performance is to be measured], subject to the achievement of the
         Performance Objectives for such Restricted Period as defined in
         Schedule 1, hereto.

                  (f) RESTRICTED STOCK. The number of shares of "Restricted
         Stock" awarded under this Agreement shall be _______________ shares.
         Shares of "Restricted Stock" are shares of Stock granted under this
         Agreement and are subject to the terms of this Agreement and the Plan.

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         Except where the context clearly implies or indicates the contrary, a
         word, term, or phrase used in the Plan is similarly used in this
         Agreement.

         2. AWARD. The Participant is hereby granted the number of shares of
Restricted Stock set forth in Section 1.

         3. DIVIDENDS AND VOTING RIGHTS. The Participant shall be entitled to
receive any dividends paid with respect to shares of Restricted Stock that
become payable during a Restricted Period; provided, however, that no dividends
shall be payable to or for the benefit of the Participant with respect to record
dates occurring prior to the Grant Date, or with respect to record dates
occurring on or after the date, if any, on which the Participant has forfeited
the Restricted Stock. Any cash dividends paid with respect to Restricted Stock
shall be paid in full to the Participant no later than the fifteenth (15th) day
of the third month following the end of the calendar year for which such
dividends are credited. The Participant shall be entitled to vote the shares of
Restricted Stock during a Restricted Period to the same extent as would have
been applicable to the Participant if the Participant was then vested in the
shares; provided, however, that the Participant shall not be entitled to vote
the shares with respect to record dates for such voting rights arising prior to
the Grant Date, or with respect to record dates occurring on or after the date,
if any, on which the Participant has forfeited the Restricted Stock.

         4. DEPOSIT OF SHARES OF RESTRICTED STOCK. Each certificate issued in
respect of shares of Restricted Stock granted under this Agreement shall be
registered in the name of the Participant and shall be deposited in a bank
designated by the Committee. The grant of Restricted Stock is conditioned upon
the Participant endorsing in blank a stock power for the Restricted Stock.

         5. TRANSFER AND FORFEITURE OF SHARES.

                  (a) If the Participant's Date of Termination (as defined
         below) does not occur during a Restricted Period, then, at the end of
         such Restricted Period and subject to satisfaction of the applicable
         Performance Objectives for that Restricted Period, the Participant
         shall become vested in the shares of Restricted Stock, and shall own
         the shares free of all restrictions otherwise imposed by this
         Agreement. A certificate reflecting the number of shares of Stock so
         vested shall be delivered to the Participant as soon as practicable
         after the Committee determines that the applicable Performance
         Objectives for that Restricted Period have been satisfied, but no later
         than the fifteenth (15th) day of the third month following the end of
         the first calendar year in which the Restricted Stock is no longer
         subject to a substantial risk of forfeiture. Notwithstanding the
         foregoing:

                           (i) in the event a Corporate Transaction, Subsidiary
                  Disposition or Change in Control, as defined in the Plan,
                  occurs on or prior to [specify last date of the last period
                  for which performance is measured ("Date X")] and prior to the
                  Participant's Date of Termination, all of the Participant's
                  shares of Restricted Stock shall immediately vest and become
                  non-forfeitable; provided, however, that in the event of a

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                  Corporate Transaction (other than a Corporate Transaction
                  described in Section 13(b)(iii) of the Plan or a Corporate
                  Transaction that also constitutes a Change in Control) as to
                  which the Committee determines that (x) the Restricted Stock
                  will be replaced with comparable Restricted Stock or (y) the
                  Restricted Stock is replaced with a cash incentive program
                  that preserves the value of the Restricted Stock and provides
                  for subsequent payment in accordance with the applicable
                  vesting schedule, then the vesting criteria, then the vesting
                  of the Restricted Stock shall only be accelerated to the
                  extent that the Committee so determines in its sole
                  discretion; and

                           (ii) in the event a Corporate Transaction,
                  Subsidiary, Disposition or Change in Control occurs after
                  [Date X], but on or prior to [specify end date of last
                  Restricted Period] and prior to the Participant's Date of
                  Termination, the unvested shares of the Participant's
                  Restricted Stock shall not be forfeited as of any such Date of
                  Termination prior to [specify end date of last Restricted
                  Period] and such shares shall vest and become non-forfeitable
                  on [specify end date of last Restricted Period], to the same
                  extent they otherwise would have but for the fact that the
                  Participant's Date of Termination occurs prior to [specify end
                  date of last Restricted Period].

                  (b) Otherwise, shares of Restricted Stock may not be sold,
         assigned, transferred, pledged or otherwise encumbered until the
         Participant is vested in the shares. Except as otherwise provided in
         this Section 5, if the Participant's Date of Termination occurs prior
         to the end of a Restricted Period, the Participant shall forfeit any
         unvested Restricted Stock as of the Participant's Date of Termination.

         6. WITHHOLDING. Participant must make arrangements, satisfactory to the
Company, for satisfaction of any applicable foreign, federal, state or local
withholding requirements related to the receipt of Restricted Stock or the lapse
of restrictions thereon. If no alternative arrangements are made, the Company
may withhold Restricted Stock to satisfy such withholding requirements.

         7. HEIRS AND SUCCESSORS.

                  (a) This Agreement shall be binding upon, and inure to the
         benefit of, the Company and the Participant and their respective
         successors and assigns.

                  (b) If any rights exercisable by the Participant or benefits
         deliverable to the Participant under this Agreement have not been
         exercised or delivered, respectively, at the time of the Participant's
         death, such rights shall be exercisable by the Designated Beneficiary,
         and such benefits shall be delivered to the Designated Beneficiary, in
         accordance with the provisions of this Agreement and the Plan.

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                  (c) If a deceased Participant has failed to designate a
         beneficiary, or if the Designated Beneficiary does not survive the
         Participant, any rights that would have been exercisable by the
         Participant and any benefits distributable to the Participant shall be
         exercised by or distributed to the legal representative of the estate
         of the Participant.

                  (d) If a deceased Participant has designated a beneficiary but
         the Designated Beneficiary dies before the Designated Beneficiary's
         exercise of all rights under this Agreement or before the complete
         distribution of benefits to the Designated Beneficiary under this
         Agreement, then any rights that would have been exercisable by the
         Designated Beneficiary shall be exercised by the legal representative
         of the estate of the Designated Beneficiary, and any benefits
         distributable to the Designated Beneficiary shall be distributed to the
         legal representative of the estate of the Designated Beneficiary.

         8. If, from time to time during the term of this Agreement, there is
any stock split-up, stock dividend, stock distribution or other reclassification
of the Company's Common Stock, any and all new, substituted or additional
securities to which the Participant is entitled by reason of his or her
ownership of the Restricted Stock shall be immediately subject to the terms of
this Agreement.

         9. ADMINISTRATION. The authority to manage and control the operation
and administration of this Agreement shall be vested in the Committee, and the
Committee shall have all powers with respect to this Agreement as it has with
respect to the Plan. Any interpretation of the Agreement by the Committee and
any decision made by it with respect to the Agreement is final and binding on
all persons.

         10. PLAN GOVERNS. Notwithstanding anything in this Agreement to the
contrary, the terms of this Agreement shall be subject to, and governed by, the
terms of the Plan, a copy of which may be obtained by the Participant from the
office of the Secretary of the Company; and this Agreement is subject to all
interpretations, amendments, rules and regulations promulgated by the Committee
from time to time pursuant to the Plan. In the event of any conflict between the
terms of the Plan and this Agreement, the terms of the Plan shall govern.

         11. AMENDMENT. This Agreement may be amended by written Agreement of
the Participant and the Company, without the consent of any other person.

         12. NO RIGHT TO CONTINUED EMPLOYMENT. This Restricted Stock Agreement
does not confer upon the Participant the right to continued employment with the
Company or any Affiliate, nor shall it interfere with the right of the Company
or an affiliate to terminate the Participant's employment at any time.

         13. CHARGES, TAXES AND EXPENSES. The issuance of certificates for
shares of Restricted Stock shall be made without charge to the Participant for
any transfer tax or other such expense imposed or incurred with respect to the
issuance of such certificates, all of which taxes and expenses shall be paid by
the Company.

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         14. GOVERNING LAW. This Agreement shall be governed by the laws of the
State of Delaware.

         IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed in its name and on its behalf as of the Grant Date.

                             MATRIA HEALTHCARE, INC.

                             By: _______________________
                             Its:________________________

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                                   SCHEDULE 1
                             PERFORMANCE OBJECTIVES

Restricted Stock shall become vested upon satisfaction of the Performance
Objectives for each Restricted Period below:

         (i) For the first Restricted Period ending _______________,
thirty-three and one-third percent (33?%) of the Participant's Restricted Stock
will become vested if the Company's earnings per share [or other performance
measure to be determined by the Committee] for the fiscal year ended during such
first Restricted Period, equals or exceeds ________________.

         (ii) For the Second Restricted Period ending _____________,
thirty-three and one-third percent (33?%) of the Participant's Restricted Stock
and, in the event no Restricted Stock became vested for the first Restricted
Period referenced in Paragraph (i) above, an additional thirty-three and
one-third percent (33?%) of the Participant's Restricted Stock, will become
vested if the Company's earnings per share [or other performance measure to be
determined by the Committee] for the fiscal year ended during the second
Restricted Period, equals or exceeds ________________.

         (iii) For the third Restricted Period ending _____________, any portion
of the Participant's Restricted Stock that had not vested previously will become
vested if the Company's earnings per share [or other performance measure to be
determined by the Committee] for the fiscal year ended during such Restricted
Period, equals or exceeds ________________.

All Restricted Stock that does not become vested in accordance with the
preceding paragraphs shall be forfeited as of the last day of the third
Restricted Period.

                                       6Exhibit 10.1

    EXHIBIT
      10.1

    

    

    NATIONAL
      PENN BANCSHARES, INC.

    

    DIRECTORS'
      FEE PLAN

    

    

    SECTION
      I - DEFINITIONS

    

    A.
       Board
      of Directors:
      The
      Board of Directors of the Company.

    

    B.  
      Change
      in Control Event:
      An
      event constituting a change in control of the Company as set forth in Section
      XVI herein.

    

    C.  
      Code:
      The
      Internal Revenue Code of 1986, as amended, and the same as may be amended from
      time to time.

    

    D.
       Common
      Stock:
      The
      Company's common stock, without par value.

    

    E.
       Company:
      National Penn Bancshares, Inc.

    

    F.
       Compensation
      Committee:
      The
      Compensation Committee of the Board of Directors (comprised solely of persons
      who are "non-employee directors" of the Company, as such term is defined by
      the
      Securities and Exchange Commission pursuant to Section 16 of the Securities
      Exchange Act of 1934).

    

    G.
       Corporate
      Secretary:
      The
      Corporate Secretary of the Company.

    

    H.
        Current
      Stock Election:
      An
      election to receive current payment of Director Fees in shares of Common Stock,
      without deferral.

    

    I.
       Deferred
      Cash Compensation Account:
      A
      book-entry reserve account maintained in the records of the Company (in the
      case
      of its participating Directors) or of a Subsidiary (in the case of its
      participating Directors) indicating the amount owed to an individual Director
      as
      a result of a cash deferral of his Director Fees.

    

    J.
       Deferred
      Cash Election:
      An
      election to defer the receipt of all or a portion of Director Fees and to
      receive eventual payment of such Director Fees in cash.

    

    K.
       Deferred
      Stock Compensation Account:
      A
      book-entry reserve account maintained in the records of the Company (in the
      case
      of its participating Directors) or of a Subsidiary (in the case of its
      participating Directors) indicating the amount owed to an individual Director
      as
      a result of a stock deferral of his Director Fees.

    

    L.
       Deferred
      Stock Election:
      An
      election to defer the receipt of all Director Fees and to receive eventual
      payment of such Director Fees in shares of Common Stock.

    

    M.
       Director:
      Any
      duly elected or appointed director of the Company or of a Subsidiary, or any
      duly appointed member of an advisory board of a Subsidiary, other than a person
      who is also a common law employee of the Company or of a Subsidiary. For
      purposes of administering and construing this Plan, such a common law employee
      shall be deemed to be a person who is not a Director.

     

     

    
      
        
        

      

      
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    N.
       Director
      Fees:
      Fees
      which are payable to a Director for services performed by such Director as
      a
      member of the Board of Directors, as a member of a Subsidiary's board of
      directors, as a member of any committee, or as a member of any advisory board
      of
      a Subsidiary.

    

    O.
       Election:
      The
      election by a Director to receive payment of Director Fees other than currently
      in cash.

    

    P.
       Fair
      Market Value:
      The
      fair market value of a share of Common Stock, determined pursuant to Section
      XIII hereof.

    

    Q.
       Interest
      Crediting Date:
      March
      31, June 30, September 30 and December 31 of each Plan Year.

    

    R.
        Plan:
      This
      Directors' Fee Plan, as adopted by the Company and as it may be amended from
      time to time.

    

    S.
       Plan
      Quarter:
      A
      calendar quarter.

    

    T.
       Plan
      Year:
      A
      calendar year.

    

    U.
       Subsidiary:
      Any
      corporation, 50% or more of the capital stock of which is owned, directly or
      indirectly, by the Company.

    

    SECTION
      II - PURPOSE; RESERVATION OF SHARES

    

    The
      purposes of the Plan are to provide each Director with payment alternatives
      for
      Director Fees and to increase the identification of interests between Directors
      and the shareholders of the Company by providing Directors with the opportunity
      to elect to receive payment of Director Fees in shares of Common Stock. For
      each
      Plan Year, the aggregate number of shares of Common Stock which may be issued
      under Current Stock Elections or credited to Deferred Stock Compensation
      Accounts for subsequent issuance under the Plan is limited to 81,500 shares,
      subject to adjustment and substitution as set forth in Section
      VII.B.

    

    SECTION
      III - ELIGIBILITY TO PARTICIPATE

    

    Except
      as
      otherwise provided in Section VI or Section VIII, any Director is eligible
      to
      participate in the Plan.

    

    SECTION
      IV - PAYMENT OR DEFERRAL OF DIRECTORS' FEES

    

    A.
      General.
      Each
      Director may elect to receive current payment of Director Fees either in cash
      or
      in shares of Common Stock, without deferral. Each Director also may elect to
      defer payment of Director Fees and to receive such deferred payment either
      in
      cash or in shares of Common Stock. An Election is made by filing with the
      Corporate Secretary a "Notice of Election" in the form prescribed by the
      Company, appropriately completed. Director Fees earned at any time for which
      an
      Election is not effective shall be paid in cash on the date determined under
      Section XIII. Any Election shall terminate on the date a Director ceases to
      be a
      Director. A Director may change an election to receive cash or shares of Common
      Stock, in each case with or without deferral, by filing a "Notice of Amendment
      or Revocation of Election" with the Corporate Secretary in accordance with
      the
      provisions of this Section IV. Any "Notice of Election" or "Notice of Amendment
      or Revocation of Election" shall become irrevocable when filed, except by the
      filing of a new "Notice of Election" or "Notice of Amendment or Revocation
      of
      Election" which thereafter becomes effective in accordance with the provisions
      of this Section IV.

    

    B.
      Current
      Stock Payment.
      Any
      Director desiring to make a Current Stock Election shall file with the Corporate
      Secretary a "Notice of Election", appropriately completed. A Current Stock
      Election shall be effective on the date on which the "Notice of Election" is
      filed. Any Current Stock Election shall remain in effect for each succeeding
      Plan Year unless and until the Director revokes such Election by filing a
      "Notice of Amendment or Revocation of Election" with the Corporate Secretary,
      appropriately completed. Any such revocation shall become effective for the
      Plan
      Year immediately following the Plan Year in which such revocation is duly
      filed.

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
 

    During
      the period that a Current Stock Election is effective, all Director Fees payable
      shall be paid by the issuance to the Director of a number of whole shares of
      Common Stock equal to the Director Fees payable divided
      by
      the Fair
      Market Value of a share of Common Stock on the date on which such Director
      Fees
      are payable (as provided in Section XIII hereof). Any amount of Director Fees
      which is not paid in Common Stock because it is less than the Fair Market Value
      of a whole share shall be accumulated in cash without interest and added to
      the
      amount used in computing the number of shares of Common Stock issuable to the
      Director on the next succeeding date on which Director Fees are payable under
      the Current Stock Election. Any such accumulated fractional amount remaining
      as
      of the effective date of any termination of a Current Stock Election or of
      the
      termination of the Plan shall be paid to the Director in cash on the next
      succeeding date on which Director Fees would have been payable to the
      Director under the Current Stock Election, but not later than March
      15th
      of the
      calendar year following the Plan Year in which the fee was earned.

    

    The
      Company shall issue share certificates to the Director for the shares of Common
      Stock acquired or, if requested in writing by the Director, the shares acquired
      shall be added to the Director's account under the Company's Dividend
      Reinvestment Plan. As of the date under Section XIII on which the Director
      Fees
      are payable in shares of Common Stock, the Director shall be a shareholder
      of
      the Company with respect to such shares.

    

    C.
      Deferred
      Cash Payment.
      Any
      Director desiring to make a Deferred Cash Election shall, no later than December
      31 of the Plan Year immediately preceding the Plan Year for which such Deferred
      Cash Election is to become effective, file with the Corporate Secretary a
      "Notice of Election", appropriately completed. In the case of a person who
      is
      elected or appointed as a Director and who was not a Director on the preceding
      December 31st, such Deferred Cash Election shall be made prior to the
      commencement of his term of office. Any Deferred Cash Election shall remain
      in
      effect for each succeeding Plan Year unless and until the Director amends or
      revokes such Election by filing with the Corporate Secretary a "Notice of
      Amendment or Revocation of Election", appropriately completed. Any such
      amendment or revocation shall become effective for the Plan Year immediately
      following the Plan Year in which such amendment or revocation is duly filed,
      and
      shall remain effective until the Plan Year immediately following the Plan Year
      in which a new "Notice of Amendment or Revocation of Election" is made as
      provided above.

    

    D.
      Deferred
      Stock Payment.
      Any
      Director desiring to make a Deferred Stock Election shall, no later than
      December 31 of the Plan Year immediately preceding the Plan Year for which
      such
      Deferred Stock Election is to become effective, file with the Corporate
      Secretary a "Notice of Election", appropriately completed. In the case of a
      person who is elected or appointed as a Director and who was not a Director
      on
      the preceding December 31st, such Deferred Stock Election shall be made prior
      to
      the commencement of his term of office. Any Deferred Stock Election shall remain
      in effect for each succeeding Plan Year unless and until the Director revokes
      such Election by filing with the Corporate Secretary a "Notice of Amendment
      or
      Revocation of Election", appropriately completed. Any such amendment or
      revocation shall become effective for the Plan Year immediately following the
      Plan Year in which such amendment or revocation is duly filed, and shall remain
      effective until the Plan Year immediately following the Plan Year in which
      a new
      "Notice of Amendment or Revocation of Election" is made as provided above.
      Upon
      revocation of an election, the cash value of any fractional share shall be
      paid
      in the same manner as provided for current stock payments in Section
      IV-B.

    

    
      
        
        

      

      
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    SECTION
      V - DEFERRED CASH COMPENSATION ACCOUNT

    

    A.
      General.
      The
      amount of any Director Fees deferred in accordance with a Cash Deferral Election
      shall be credited to a Deferred Cash Compensation Account in the name of the
      Director on the date on which such Director Fees are otherwise payable as
      provided in Section XIII.

    

    B.
      Interest.
      On each
      Interest Crediting Date, each Deferred Cash Compensation Account shall be
      credited with additional amounts in the nature of interest. The rate of interest
      that will accrue with respect to a Deferred Cash Compensation Account for a
      given Plan Year will be equal to the rate of return realized by the Mandatory
      Deferral Accounts ("Mandatory Deferral Accounts") of the National Penn
      Bancshares, Inc. Executive Incentive Plan (the "Executive Incentive Plan")
      during the three-month period ended within such Plan Quarter. Interest on
      amounts in Deferred Cash Compensation Accounts shall accrue daily and shall
      be
      determined by reference to a 365/366-day year; provided, however, that no
      deferred Director Fee shall commence accruing interest until the first day
      of
      the Plan Quarter immediately following the Plan Quarter in which it is payable
      as provided in Section XIII.

    

    Notwithstanding
      the provisions of the preceding paragraph, if a Deferred Cash Compensation
      Account is completely liquidated on a date other than an Interest Crediting
      Date, interest shall be credited to such Account, as of the date of its
      liquidation, for the period since the last Interest Crediting Date. The interest
      rate to be used shall be the rate of return realized by the Mandatory Deferral
      Accounts during the three-month period ended within the last preceding Plan
      Quarter.

    

    Notwithstanding
      anything herein to the contrary, the Compensation Committee may vary the method
      of calculating interest on Deferred Cash Compensation Account balances if the
      Executive Incentive Plan is terminated or amended to materially alter the
      present nature of calculation of interest on Mandatory Deferral Accounts. The
      decision of the Compensation Committee as to the use of a substituted method
      of
      calculating interest shall be final and binding on all affected
      Directors.

    

    SECTION
      VI - DISTRIBUTION OF DEFERRED

    CASH
      COMPENSATION ACCOUNT BALANCES

    

    A.
      General.
      No
      distribution from a Deferred Cash Compensation Account shall be made or commence
      prior to the (i) termination of the Director's service as such, (ii) the
      Director's attainment of age 65 or (iii) the later of the foregoing as selected
      by the Director in his initial Deferred Cash Election as occasioning such
      distribution. The actual date on which distribution will be made or commence
      will be determined by the Compensation Committee; provided, however, that such
      date may be no later than December 31 of the Plan Year in which the elected
      distribution event occurs.

    

    Distributions
      from Deferred Cash Compensation Accounts may be made in a lump sum or in annual
      installments over a period of five or ten years, as elected. The amount of
      any
      annual installment shall be calculated by dividing the balance in a Director's
      Deferred Cash Compensation Account at the relevant time by the number of
      installments remaining to be paid. The actual method of distribution from a
      Director's Deferred Cash Compensation Account will be determined by the method
      of distribution selected by the Director in his initial Deferred Cash Election.
      

    

    The
      balance of the Deferred Cash Compensation Account shall be appropriately reduced
      on the date of payment to the Director or the Director's designated beneficiary
      to reflect the installment payments made hereunder. Amounts held pending
      distribution pursuant to this Section VI shall continue to be credited with
      interest on a quarterly basis as described in Section V hereof. 

    

    Once
      made, an election as to the event which shall occasion a distribution and an
      election as to the method or timing of distribution shall be irrevocable, unless
      (i) the Compensation Committee consents in writing to an election change,(ii)
      the election change is made at least twelve months before the date that the
      distribution would have been made, (iii) the election change does not take
      effect until at least twelve months after the date of the election and (iv)
      the
      election change delays the distribution for a period of more than five years.
      

     

     

    
      
        
        

      

      
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    B.
      Beneficiary
      Designation.
      A
      Director may designate one or more persons to receive the balance in his
      Deferred Cash Compensation Account in the event of his death prior to receipt
      of
      the total amount therein. No such designation will be valid unless made on
      a
      "Beneficiary Designation" form prescribed by the Company, and duly and timely
      filed with the Corporate Secretary. A Director may at any time, and from time
      to
      time, revoke or amend such designation by duly and timely filing a new
      "Beneficiary Designation" form with the Corporate Secretary. If a Director
      dies
      without a completed "Beneficiary Designation" form on file with the Corporate
      Secretary, payment will be made to his estate. All distributions made as a
      result of death shall be paid in lump sums.

    

    SECTION
      VII - DEFERRED STOCK COMPENSATION ACCOUNT

    

    A.
      General.
      The
      amount of any Director Fees deferred in accordance with a Stock Deferral
      Election shall be credited to a Deferred Stock Compensation Account in the
      name
      of the Director. On each date on which Director Fees are payable under Section
      XIII to Directors for whom Stock Deferral Elections are in effect, the
      Director's Deferred Stock Compensation Account shall be credited with a number
      of shares of Common Stock (including fractional shares) equal to the Director
      Fees payable divided
      by
      the Fair
      Market Value of a share of Common Stock on that date. If a dividend or
      distribution is paid on the Common Stock in cash or property other than Common
      Stock, then, on the date of payment of the dividend or distribution to holders
      of the Common Stock, each Deferred Stock Compensation Account shall be credited
      with the number of shares of Common Stock (including fractional shares) equal
      to
      the number of shares of Common Stock credited to such Account on the date fixed
      for determining the shareholders entitled to receive such dividend or
      distribution times
      the
      amount of the dividend or distribution paid per share of Common Stock
divided
      by
      the Fair
      Market Value of a share of Common Stock on the date on which the dividend or
      distribution is paid. If the dividend or distribution is paid in property,
      the
      amount of the dividend or distribution shall equal the fair market value of
      the
      property on the date on which the dividend or distribution is paid. The Deferred
      Stock Compensation Account of a Director shall be charged on the date of
      distribution with any distribution of shares of Common Stock made to the
      Director from such Account pursuant to Section VIII A hereof.

    

    B.
      Adjustment
      and Substitution.
      The
      number of shares of Common Stock credited to each Deferred Stock Compensation
      Account, and the number of shares of Common Stock available for issuance or
      crediting under the Plan in each Plan Year in accordance with Section II hereof,
      shall be proportionately adjusted to reflect any dividend or other distribution
      on the outstanding Common Stock payable in shares of Common Stock or any split
      or consolidation of the outstanding shares of Common Stock. If the outstanding
      Common Stock shall, in whole or in part, be changed into or exchangeable for
      a
      different class or classes of securities of the Company or securities of another
      company or cash or property other than Common Stock, whether through
      reorganization, reclassification, recapitalization, merger, consolidation or
      otherwise, the Board of Directors shall adopt such amendments to the Plan as
      it
      deems necessary to carry out the purposes of the Plan, including the continuing
      deferral of any amount of any Deferred Stock Compensation
      Account.

    

    SECTION
      VIII - DISTRIBUTION OF DEFERRED

    STOCK
      COMPENSATION ACCOUNT BALANCES

    

    A.
      General.
      No
      distribution from a Deferred Stock Compensation Account shall be made or
      commence prior to the (i) termination of the Director's service as such, (ii)
      the Director's attainment of age 65 or (iii) the later of the foregoing, as
      selected by the Director in his initial Deferred Stock Election as occasioning
      such distribution. The actual date on which distribution will be made or
      commence will be determined by the Compensation Committee; provided, however,
      that such date may be no later than December 31 of the Plan Year in which such
      event occurs.

     

     

    
      
        
        

      

      
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    Distributions
      of Common Stock from Deferred Stock Compensation Accounts may be made in a
      lump
      sum or in annual installments over a period of five or ten years. The number
      of
      shares of Common Stock distributed in any annual installment shall be calculated
      by dividing the balance in a Director's Deferred Stock Compensation Account
      at
      the relevant time by the number of installments remaining to be paid. The actual
      method of distribution from a Director's Deferred Stock Compensation Account
      will be determined by the method of distribution selected by the Director in
      his
      initial Deferred Stock Election.

     

    The
      balance of the number of shares of Common Stock in the Deferred Stock
      Compensation Account shall be appropriately reduced to reflect the installment
      payments made hereunder. Shares of Common Stock remaining in a Deferred Stock
      Compensation Account pending distribution pursuant to this Section shall
      continue to be credited with respect to dividends or distributions paid on
      the
      Common Stock pursuant to Section VII hereof and shall be subject to adjustment
      or substitution pursuant to Section VII hereof. If a lump sum payment or the
      final installment payment hereunder would result in the issuance of a fractional
      share of Common Stock, such fractional share shall not be issued and cash in
      lieu of such fractional share shall be paid to the Director based on the Fair
      Market Value of a share of Common Stock on the date immediately preceding the
      date of such payment. 

    

    The
      Company shall issue share certificates to the Director, or the Director's
      designated beneficiary, for the shares of Common Stock distributed hereunder,
      or
      if requested in writing by the Director, the shares to be distributed shall
      be
      added to the Director's account under the Company's Dividend Reinvestment Plan.
      As of the date on which the Director is entitled to receive payment of shares
      of
      Common Stock, the Director shall be a shareholder of the Company with respect
      to
      such shares.

    

    Once
      made, an election as to the event which shall occasion a distribution and an
      election as to the method or timing of distribution shall be irrevocable, unless
      (i) the Compensation Committee consents in writing to an election change, (ii)
      the election change is made at least twelve months before the date that the
      distribution would have been made, (iii) the election change does not take
      effect until at least twelve months after the date of the election and (iv)
      the
      election change delays the distribution for a period of more than five years.
      

    

    B.
      Beneficiary
      Designation.
      A
      Director may designate one or more persons to receive the balance in his
      Deferred Stock Compensation Account in the event of his death prior to receipt
      of the total amount therein. No such designation will be valid unless made
      on a
      "Beneficiary Designation" form prescribed by the Company, and duly and timely
      filed with the Corporate Secretary. A Director may at any time, and from time
      to
      time, revoke or amend such designation by duly and timely filing a new
      "Beneficiary Designation" form with the Corporate Secretary. If a Director
      dies
      without a completed "Beneficiary Designation" form on file with the Corporate
      Secretary, payment will be made to his estate. All distributions made as a
      result of death shall be paid in lump sums.

    

    SECTION
      IX - NON-ALIENABILITY OF BENEFITS

    

    A.
      General
      Rule.
      Except
      as provided in Section IX B, neither the Director nor any beneficiary designated
      by the Director shall have the right, directly or indirectly, to alienate,
      assign, transfer, pledge, anticipate or encumber (except by reason of death)
      any
      amount that is or may be payable hereunder, nor shall any such amount be subject
      to anticipation, alienation, sale, assignment, transfer, pledge, encumbrance,
      attachment or garnishment by creditors of the Director or the Director's
      designated beneficiary or to the debts, contracts, liabilities, engagements
      or
      torts of any Director or the Director's designated beneficiary, or transfer
      by
      operation of law in the event of bankruptcy or insolvency of the Director or
      the
      Director's designated beneficiary, or any legal process.

    

    B.
      Domestic
      Relations Order.
      The
      Compensation Committee shall permit an assignment of all or a portion of a
      Director's interest in the Plan to the extent that such assignment is required
      to comply with any judgment, decree or order (including approval of a property
      settlement agreement) which relates to the provision of child support, alimony
      payments or marital property rights to a spouse, former, spouse child or other
      dependent of a Director made pursuant to a State domestic relations
      law.

     

    
 

    
      
        
        

      

      
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    SECTION
      X - NATURE OF DEFERRED ACCOUNTS

    

    Any
      Deferred Cash Compensation Account or Deferred Stock Compensation Account shall
      be established and maintained only on the books and records of the Company
      or
      the applicable Subsidiary, and no assets or funds of the Company, a Subsidiary
      or the Plan or shares of Common Stock shall be removed from the claims of the
      Company's or a Subsidiary's general or judgment creditors or otherwise made
      available until such amounts are actually payable to Directors or their
      designated beneficiaries as provided herein.

    

           
      The Plan constitutes a mere promise by the Company or the applicable Subsidiary
      to make payments in the future. The Directors and their designated beneficiaries
      shall have the status of, and their rights to receive a payment of cash or
      shares of Common Stock under the Plan shall be no greater than the rights of,
      general unsecured creditors of the Company or the applicable Subsidiary. No
      person shall be entitled to any voting rights with respect to shares credited
      to
      a Deferred Stock Compensation Account and not yet payable to a Director or
      the
      Director's designated beneficiary. The Company and the Subsidiaries shall not
      be
      obligated under any circumstances to fund their respective financial obligations
      under the Plan and the Plan is intended to constitute an unfunded plan for
      Federal income tax purposes.

    

    SECTION
      XI - PLAN ADMINISTRATION

    

    The
      Compensation Committee shall, with respect to the Plan, have full power and
      authority to construe, interpret, manage, control and administer this Plan,
      and
      to pass and decide upon cases in conformity with the objectives of the Plan
      under such rules as the Board of Directors and/or the Compensation Committee
      may
      establish consistent with satisfying the requirements of section 409A of the
      Code and other applicable law.

    

    If
      the
      Compensation Committee deems any person entitled to receive a distribution
      incapable of receiving or disbursing the same by reason of age, illness or
      any
      infirmity or incapacity of any kind, payment may be made directly for the
      comfort, support and maintenance
      of such person or to any person selected by the Compensation Committee to
      disburse the same, whose receipt shall be a complete acquittance
      therefor.

    

    SECTION
      XII - ACCELERATION OF DISTRIBUTION

    

    A.
      Hardship.
      Notwithstanding the terms of a Cash Deferral Election or a Stock Deferral
      Election made by a Director hereunder, the Compensation Committee may, in its
      sole discretion, permit the withdrawal of amounts credited to a Deferred Cash
      Compensation Account or of shares credited to a Deferred Stock Compensation
      Account with respect to Director Fees previously payable, upon the request
      of a
      Director or the Director's representative, if the Compensation Committee
      determines that the Director or the Director's representative, as the case
      may
      be, is confronted with an unforeseeable emergency. If a Director receives a
      distribution under this Section, the Director's deferral election shall
      automatically be cancelled and any later deferral election shall be subject
      to
      the rules governing initial elections. For this purpose, an unforeseeable
      emergency is a severe financial hardship of the Director resulting from (i)
      an
      illness or accident of the Director, the Director's spouse, or the Director's
      dependent (within the meaning of section 152(a) of the Code, (ii) loss of the
      Director's property due to a casualty (including the need to rebuild a home
      following damage to a home not otherwise covered by insurance; (iii) or other
      similar extraordinary and unforeseeable circumstances arising as a result of
      events beyond the control of the Director. The Director or the Director's
      representative shall provide to the Compensation Committee such evidence as
      the
      Compensation Committee, in its discretion, may require to demonstrate that
      such
      emergency exists and financial hardship would occur if the withdrawal were
      not
      permitted. The withdrawal shall be limited to the amount or to the number of
      shares, as the case may be, reasonably necessary to meet the emergency need
      (including amounts necessary to pay any applicable taxes or penalties resulting
      from the distribution) and not otherwise relieved through reimbursement or
      compensation from insurance or otherwise, by liquidation of the Director's
      other
      assets (to the extent liquidation of such assets would not cause severe
      financial hardship or by cessation of deferrals under this Plan. Payment shall
      be made as soon as practicable after the Compensation Committee approves the
      payment and determines the amount of the payment or number of shares which
      shall
      be withdrawn, in a single lump sum. No Director shall participate in any
      decision of the Compensation Committee regarding such Director's request for
      a
      withdrawal under this Section XII.

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    
 

    B.
      Conflict
      of Interest.
      Notwithstanding anything herein to the contrary, if an individual becomes
      subject to a certificate of divestiture (within the meaning of section
      1043(b)(2) of the Code) issued in connection with Federal conflict-of-interest
      requirements, the Compensation Committee shall take whatever action is necessary
      to comply with such certificate, including, if required, accelerated
      distribution of the individual's Deferred Cash Account and/or Deferred Stock
      Account and conversion of a Deferred Stock Account to a Deferred Cash
      Account.

    

    C.
      Domestic
      Relations Order.
      The
      Compensation Committee shall permit an acceleration of the time or payment
      schedule to a person other than the Director to the extent such acceleration
      is
      required to comply with a domestic relations order, as provided for in Section
      IX B. 

    

    D.
      Income
      Inclusion under Section 409A.
      The
      Compensation Committee shall permit the acceleration of the time or schedule
      of
      a payment at any time that this Plan fails to meet the requirements of section
      409A of the Code and the regulations that apply to it. The payment may not
      exceed the amount required to be included in income as a result of the failure
      to comply with the requirements of section 409A and the
      regulations.

    

    E.
      Plan
      Termination.
      Distribution may be accelerated in accordance with the Plan termination
      provisions of Section XVI.

    

    SECTION
      XIII - PAYMENT DATES; FAIR MARKET VALUE

    

    Director
      Fees payable currently in cash or to be credited to a Deferred Cash Compensation
      Account shall be paid or credited, as the case may be, on such dates as the
      Company's or the Subsidiary's management shall determine, but not less
      frequently than June 30 and December 31 of each Plan Year. Director Fees payable
      currently in shares of Common Stock or to be credited to a Deferred Stock
      Compensation Account shall be paid or credited, as the case may be, on June
      30
      and December 31 of each Plan Year, in each case covering the six-month period
      ending on such date. 

    

    "Fair
      Market Value" of a share of Common Stock on a given date shall be determined
      (i)
      based on the average of the closing sale prices of a share of Common Stock
      for
      the ten (10) day trading period ending on the given date, as reported on the
      National Association of Securities Dealers Automated Quotation ("Nasdaq")
      National Market and published in The
      Wall Street Journal,
      (ii) if
      no closing sale prices are reported during such ten (10) day trading period,
      based on the average of the mean of the bid and asked prices per share of Common
      Stock for such ten (10) day trading period, as reported on Nasdaq, (iii) if
      the
      Common Stock is listed on a stock exchange, based on the average of the closing
      sale prices of a share of Common Stock for the ten (10) day trading period
      ending on the given date, as reported in The
      Wall Street Journal,
      or (iv)
      if the Common Stock is not listed on Nasdaq or on a stock exchange, by the
      Board
      of Directors in its sole discretion.

    

    SECTION
      XIV - SECURITIES LAWS; ISSUANCE OF SHARES

    

    Subject
      to Section XV A, the obligation of the Company to issue or credit shares of
      Common Stock under the Plan shall be subject to (i) the effectiveness of a
      registration statement under the Securities Act of 1933, as amended, with
      respect to such shares, if deemed necessary or appropriate by counsel for the
      Company, (ii) the condition that the shares shall have been listed (or
      authorized for listing upon official notice of issuance) upon Nasdaq or each
      stock exchange, if any, on which the shares of Common Stock may then be listed
      and (iii) all other applicable laws, regulations, rules and orders which may
      then be in effect. If, on the date on which any shares of Common Stock would
      be
      issued pursuant to a Current Stock Election or credited to a Deferred Stock
      Compensation Account, sufficient shares of Common Stock are not available under
      the Plan or the Company is not obligated to issue shares pursuant to this
      Section, then no shares of Common Stock shall be issued or credited, but rather,
      in the case of a Current Stock Election, cash shall be paid in payment of the
      Director Fees payable, and in the case of a Deferred Stock Compensation Account,
      Director Fees and dividends which would otherwise have been credited in shares
      of Common Stock shall be credited in cash to a Deferred Cash Compensation
      Account in the name of the Director. The Compensation Committee shall adopt
      appropriate rules and regulations to carry out the intent of the immediately
      preceding sentence if the need for such rules and regulations
      arises.

     

     

    
      
        
        

      

      
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    SECTION
      XV - PERMITTED AND REQUIRED PAYMENT DELAYS

    

    A.
      Violation
      of Law.
      Payment
      will be delayed if the Company reasonably anticipates that the making of the
      payment will violate Federal securities laws or other applicable law; provided,
      that the payment is made at the earliest date at which the Company reasonably
      anticipates that the making of the payment will not cause such violation. For
      purposes of this provision, the making of a payment that would cause inclusion
      in gross income or the application of any penalty provision or other provision
      of the Code is not treated as a violation of applicable law.

    

    B.
      Payments
      Subject to Section 162(m).
      Payment will be delayed if the Company reasonably anticipates that its deduction
      with respect to such payment would otherwise be limited or eliminated by
      application of section 162(m) of the Code; provided that the Company reasonably
      anticipates that the deduction of the payment amount will not be limited or
      eliminated by application of section 162(m) for the calendar year in which
      the
      individual separates from service.

    

    C.
      Loan
      Covenant.
      Payment
      will be delayed if the Company reasonably anticipates that the making of the
      payment will violate a term of a loan agreement to which the Company is a party,
      or other similar contract to which the Company is a party, and such violation
      will cause material harm to the Company; provided that the payment is made
      at
      the earliest date at which the Company reasonably anticipates that the making
      of
      the payment will not cause such violation, or such violation will not cause
      material harm to the Company and provided that the Company entered into such
      loan agreement (including such covenant) or other similar contract for
      legitimate business reasons and not to avoid the restrictions of section 409A
      of
      the Code.

    

    D.
      Required
      Delay.
      If
      payment is required to be delayed for six months from separation from service
      because the payee is a "specified employee" subject to such payment delay by
      reason of section 409A(a)(2)(B)(i) of the Code and the regulations thereunder,
      then the payment shall be delayed until the first day that such restriction
      on
      payment expires. 

    

    SECTION
      XVI - AMENDMENT,

    MODIFICATION,
      SUSPENSION OR TERMINATION

    

    A.
      General.
      The
      Company reserves the right, by and through the Board of Directors, to amend,
      suspend or terminate all or any part of the Plan at any time; provided, that
      no
      such amendment, suspension or termination shall adversely affect the amounts
      or
      shares then credited to any Deferred Cash Compensation Account or to any
      Deferred Stock Compensation Account. 

    

    B.
      Termination
      Incident to Change in Control Event.
      If this
      Plan is terminated within thirty days preceding or the twelve months following
      a
      Change in Control Event (as defined below), distributions shall be made in
      one
      lump sum thirty days after the later of the Change in Control Event or the
      action providing for Plan termination, as the case may be. For purposes of
      this
      provision, accelerated distribution is only permitted if substantially all
      similar arrangements that the Company sponsors are terminated in a manner that
      requires participants in such arrangements to receive all amounts of
      compensation deferred under the terminated arrangements within twelve months
      of
      the date of termination of the arrangements.

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    
 

    A
      Change
      in Control Event is any of the following:

    

    1.
      A
      change in the ownership of the Company, which is deemed to occur when any one
      person, or more than one person acting as a group acquires ownership of stock
      of
      the Company that, together with stock held by such person or group, constitutes
      more than fifty percent of the total fair market value or total voting power
      of
      the stock of the Company.

    

    2.
      A
      change in the effective control of the Company, which is deemed to occur when
      (i) either any one person, or more than one person acting as a group, acquires
      (or has acquired during the twelve-month period ending on the most recent
      acquisition by such person or group) ownership of the stock of the Company
      possessing thirty-five percent or more of the total voting power of the
      Company's stock or (ii) a majority of the Company's Board of Directors is
      replaced during any twelve-month period by directors whose appointment or
      election is not endorsed by a majority of the members of the Board of Directors
      prior to the date of appointment or election.

    

    3.
      A
      change in the ownership of a substantial portion of the Company' assets, which
      is deemed to occur on the date that any one person, or more than one person
      acting as a group acquires (or has acquired during the twelve-month period
      ending on the most recent acquisition by such person or group) assets from
      the
      Company that have a total gross fair market value equal to or more than forty
      percent of the total gross fair market value of all of the assets of the Company
      immediately prior to such acquisition or acquisitions.

    

    

    4.
      The
      existence of any of the foregoing events shall be determined based on objective
      standards and in complete accordance with the requirements of section 409A
      of
      the Code and the regulations thereunder so that any accelerated distribution
      resulting from application of this Section does not result in a violation of
      section 409A of the Code. 

    

    C.
      Other
      Terminations.
      If this
      Plan is terminated for reasons other than as provided above, the Board of
      Directors may authorize accelerated distributions only if (i) all arrangements
      that the Company sponsors that would be aggregated with this Plan under
      regulations promulgated under section 409A of the Internal Revenue Code of
      1986,
      as amended, are terminated, (ii)no payments other than payments that would
      be
      payable under the Plan if the termination had not occurred are made within
      twelve months of the termination, (iii) all payments are made within twenty-four
      months of the termination; and (iv) the Company does not adopt a new arrangement
      that would be aggregated with this Plan under regulations promulgated pursuant
      to section 409A if any person participated in this Plan and such new arrangement
      at any time within five years following the date of
      termination.

    

    SECTION
      XVII - GOVERNING LAW; PRONOUNS

    

    Except
      to
      the extent pre-empted by Federal law, the provisions of the Plan shall be
      construed, administered and enforced in accordance with the domestic internal
      law (but not the law of conflicts of law) of the Commonwealth of Pennsylvania.
      Each masculine, feminine or neuter pronoun used herein shall be deemed a
      reference to each other gender, as the content requires.

    

    SECTION
      XVIII - RESTATEMENT; EFFECTIVE DATE

    

    This
      Plan
      is an amendment and restatement effective as of January 1, 2005, of the
      Company's Deferred Compensation Plan for Non-Employee Directors. This Plan
      as
      amended and restated herein was approved by the Board of Directors on November
      23, 2005. 

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    
 

    The
      Plan
      originally was adopted by the Board of Directors effective January 1, 1995
      and
      was subsequently amended or amended and restated from time to time.

    

    The
      Plan
      as amended and restated herein shall continue in effect for a term through
      December 31, 2016, provided it is approved by the Company's shareholders at
      the
      2006 Annual Meeting unless sooner terminated under Section XVI. If the Plan
      is
      not approved by shareholders at the 2006 Annual Meeting, it shall terminate
      on
      December 31, 2006, unless sooner terminated under Section XVI.

     

     

    11

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