Document:

AMENDED AND RESTATED

                      BERNVILLE BANK, NATIONAL ASSOCIATION

                         DIRECTOR DEFERRED FEE AGREEMENT

         THIS AMENDED AND RESTATED  DIRECTOR DEFERRED FEE AGREEMENT is made this
____ day of  _________________,  2000, by and between  BERNVILLE BANK,  NATIONAL
ASSOCIATION, a national banking association located in Bernville,  Pennsylvania,
and ___________ __________ (the "Director").

                                  INTRODUCTION

         To encourage the Director to remain a member of the Company's  Board of
Directors,  the  Company is willing  to provide to the  Director a deferred  fee
opportunity. The Company will pay the benefits from its general assets.

                                    AGREEMENT

         The Director and the Company agree as follows:

                                    Article 1

                                   Definitions

         1.1 Definitions.  Whenever used in this Agreement,  the following words
and phrases shall have the meanings specified:

                  1.1.1 "Agreement" means the Original Agreement,  as amended by
         this Amended and Restated Agreement.

                  1.1.2  "Board  of  Directors"   shall  include  the  Board  of
         Directors  and any  advisory  or  regional  Board of the Company or the
         Company's parent company.

                  1.1.3 "Change of Control"  means the transfer of shares of the
         Company's  voting  common  stock such that one person  acquires  (or is
         deemed to  acquire  under  Section  318 of the Code) 51% or more of the
         Company's  outstanding  voting common stock followed within twelve (12)
         months by the  termination of the Director's  status as a member of the
         Company's  Board of  Directors;  provided,  however,  that  neither the
         merger  of  the  Company's  parent  bank  holding

<PAGE>

         company,  Community Independent Bank, Inc., with and into National Penn
         Bancshares,  Inc. nor the merger of the Company with and into  National
         Penn Bank shall  constitute  a "Change of Control" for purposes of this
         Agreement.

                  1.1.4  "Code"  means  the  Internal  Revenue  Code  of 1986 as
         amended.

                  1.1.5   "Company"   means   Bernville  Bank,  N.A.  and,  upon
         consummation  of the  merger  of  Bernville  Bank,  N.A  with  and into
         National Penn Bank pursuant to that certain Bank Plan of Merger,  dated
         July 23, 2000 by and between  National  Penn Bank and  Bernville  Bank,
         N.A. (the "Plan of Merger"), National Penn Bank.

                  1.1.6 "Disability"  means the Director's  inability to perform
         substantially  all normal  duties of a director,  as  determined by the
         Company's Board of Directors in its sole discretion.  As a condition to
         any  benefits,  the Company may require the  Director to submit to such
         physical  or mental  evaluations  and  tests as the Board of  Directors
         deems appropriate.

                  1.1.7  "Election Form" means the Form attached as Exhibit A.

                  1.1.8  "Fees"  means the total  directors  fees payable to the
         Director.

                  1.1.9  "Normal  Termination  Age"  means the  Director's  65th
         birthday.

                  1.1.10 "Normal  Termination Date" means the Normal Termination
         Age, the date of the Director's  Termination of Service or the later of
         the foregoing, as directed on the Director's Election Form.

                  1.1.11 "Original  Agreement"  means the Director  Deferred Fee
         Agreement   between   Bernville  Bank,  N.A.  and  the  Director  dated
         _____________.

                  1.1.12  "Termination of Service" means the Director's  ceasing
         to be a member  of the  Company's  Board of  Directors  for any  reason
         whatsoever.

                                       2
<PAGE>

                                    Article 2

                                Deferral Election

         2.1  Initial  Election.  The  Director  shall make an initial  deferral
election under this Agreement by filing with the Company a signed  Election Form
within  fifteen (15) days after the date of this  Agreement.  The Election  Form
shall set forth the amount of Fees to be deferred,  the Normal  Termination Date
and the mode of distribution of the Deferral Account.

         2.2  Election Changes

                  2.2.1 Generally. The Director may modify the amount of Fees to
         be deferred annually by filing a new Election Form with the Company and
         obtaining  written  approval by the Board of  Directors of the Company.
         The modified  deferral  shall not be effective  until the calendar year
         following the year in which the subsequent Election Form is received by
         the Company.  The  Director may not change the form of benefit  payment
         initially elected under Section 2.1 without the written approval of the
         Board of Directors of the Company.

                  2.2.2  Hardship.  If  an  unforeseeable   financial  emergency
         arising from the death of a family member, divorce,  sickness,  injury,
         catastrophe  or similar  event  outside  the  control  of the  Director
         occurs, the Director, by written instructions to the Company may reduce
         future deferrals under this Agreement.

                                    Article 3

                                Deferral Account

         3.1 Establishing and Crediting.  The Company shall establish a Deferral
Account on its books for the Director,  and shall credit to the Deferral Account
the following amounts:

                  3.1.1  Original  Deferral  Account.  The  Director's  Deferral
         Account  balance  under the  Original  Agreement as of the date of this
         Agreement.

                  3.1.2  Deferrals.  The Fees deferred by the Director as of the
         time the Fees would have otherwise been paid to the Director.

                                       3
<PAGE>

                  3.1.3  Interest.  On  each  anniversary  of  the  date  of the
         Agreement and through the date of  consummation  of the Plan of Merger,
         interest on the account  balance since the preceding  credit under this
         Section 3.1.3, if any, equal to a 9% interest rate; thereafter,  on the
         last day of each  calendar  quarter,  interest on the  account  balance
         since the  preceding  credit under this Section 3.1.3 equal to the rate
         paid on the Deferred Cash Compensation Accounts under the 1997 National
         Penn  Bancshares,  Inc.  Directors' Fee Plan, which is the rate paid on
         the Money Market Account (interest paid quarterly) offered by Investors
         Trust Company, Boyertown, Pennsylvania.

         3.2  Statement of Accounts.  The Company shall provide to the Director,
within  one  hundred  twenty  (120)  days of the end of each  calendar  year,  a
statement setting forth the Deferral Account balance.

         3.3 Accounting Device Only. The Deferral Account is solely a device for
measuring amounts to be paid under this Agreement. The Deferral Account is not a
trust fund of any kind.  The  Director  is a general  unsecured  creditor of the
Company for the payment of benefits.  The benefits  represent the Company's mere
promise to pay such  benefits.  The  Director's  rights  are not  subject in any
manner  to  anticipation,   alienation,  sale,  transfer,   assignment,  pledge,
encumbrance, attachment, or garnishment by the Director's creditors.

                                    Article 4

                            Distribution of Benefits

         4.1 Termination  Benefit.  Upon the Director's Normal  Termination Date
the Company shall pay to the Director the benefit described in this Section 4.1.

                  4.1.1 Amount of Benefit. The benefit under this Section 4.1 is
         the Deferral Account balance at the Director's Termination of Service.

                  4.1.2 Payment of Benefit. The Company shall pay the benefit to
         the Director, or the Director's beneficiary,  as appropriate, in a lump
         sum,  in  10  equal   annual   installments,   or  in  5  equal  annual
         installments,  as  directed  by  the  Director  on the  Election  Form,
         commencing  on the  first  day of the month  following  the  Director's
         Termination of Service. The Company shall

                                       4
<PAGE>

         amortize the Deferral Account balance using a reasonable  discount rate
         as determined by the Company in its sole discretion.

         4.2  Change in  Control  Benefit.  Upon a Change of  Control  while the
Director is in the active  service of the Company,  the Company shall pay to the
Director the benefit  described in this Section 4.2 in lieu of any other benefit
under this Agreement.

                  4.2.1 Amount of Benefit. The benefit under this Section 4.2 is
         the Deferral Account balance at the date of the Director's  Termination
         of Service.

                  4.2.2 Payment of Benefit. The Company shall pay the benefit to
         the Director in a lump sum within 60 days after Termination of Service.

         4.3 Hardship Distribution.  Upon the Company's determination (following
petition by the  Director)  that the  Director  has  suffered  an  unforeseeable
financial  emergency as described in Section 2.2.2, the Company shall distribute
to the Director all or a portion of the Deferral  Account  balance as determined
by the  Company  but in no event  shall  the  distribution  be  greater  than is
necessary to relieve the financial hardship.

                                    Article 5

                                  Beneficiaries

         5.1   Beneficiary   Designations.   The  Director  shall   designate  a
beneficiary by filing a written  designation with the Company.  The Director may
revoke  or  modify  the  designation  at any time by  filing a new  designation.
However,  designations  will only be  effective  if signed by the  Director  and
accepted  by  the  Company  during  the  Director's  lifetime.   The  Director's
beneficiary designation shall be deemed automatically revoked if the beneficiary
predeceases  the Director,  or if the Director names a spouse as beneficiary and
the marriage is  subsequently  dissolved.  If the Director  dies without a valid
beneficiary designation, all payments shall be made to the Director's estate.

         5.2  Facility  of  Payment.  If a benefit is  payable to a minor,  to a
person  declared  incompetent,   or  to  a  person  incapable  of  handling  the
disposition  of his or her  property,  the Company  may pay such  benefit to the
guardian,  legal  representative  or person  having  the care or custody of such
minor,

                                       5
<PAGE>

incompetent  person or  incapable  person.  The  Company  may  require  proof of
incompetence,  minority  or  guardianship  as it may deem  appropriate  prior to
distribution of the benefit.  Such distribution  shall completely  discharge the
Company from all liability with respect to such benefit.

                                    Article 6

                   General Limitations - Termination for Cause

         Notwithstanding  any provision of this  Agreement to the contrary,  the
Company shall not pay any benefit under this Agreement that is  attributable  to
the  interest  earned  on  such  contributions  if the  Company  terminates  the
Director's service as a director for:

         6.1  Gross negligence or gross neglect of duties;

         6.2 Commission of a felony or of a gross  misdemeanor  involving  moral
turpitude; or

         6.3 Fraud,  disloyalty,  dishonesty or willful  violation of any law or
significant  Company policy committed in connection with the Director's  service
and resulting in an adverse financial effect on the Company.

                                    Article 7

                          Claims and Review Procedures

         7.1 Claims  Procedure.  The Company  shall  notify any person or entity
that makes a claim under the  Agreement  (the  "Claimant")  in  writing,  within
ninety (90) days of Claimant's written  application for benefits,  of Claimant's
eligibility or  ineligibility  for benefits under the Agreement.  If the Company
determines that the Claimant is not eligible for benefits or full benefits,  the
notice shall set forth (1) the specific reasons for such denial,  (2) a specific
reference to the provisions of the Agreement on which the denial is based, (3) a
description of any additional information or material necessary for the Claimant
to perfect  Claimant's claim, and a description of why it is needed,  and (4) an
explanation of the  Agreement's  claims review  procedure and other  appropriate
information as to the steps to be taken if the Claimant wishes to have the claim
reviewed.  If the  Company  determines  that  there  are  special  circumstances
requiring  additional  time to make a  decision,  the Company  shall  notify the
Claimant  of the  special

                                       6
<PAGE>

circumstances  and the date by which a decision is expected to be made,  and may
extend the time for up to an additional ninety-day period.

         7.2 Review Procedure.  If the Claimant is determined by the Company not
to be eligible for benefits,  or if the Claimant believes that he is entitled to
greater or different  benefits,  the Claimant shall have the opportunity to have
such claim  reviewed  by the  Company by filing a petition  for review  with the
Company  within  sixty  (60) days  after  receipt  of the  notice  issued by the
Company.  Said petition shall state the specific  reasons which entitle Claimant
to benefits or to greater or  different  benefits.  Within sixty (60) days after
receipt by the Company of the  petition,  the Company  shall afford the Claimant
(and  counsel,  if any) an  opportunity  to present  Claimant's  position to the
Company orally or in writing, and the Claimant (or counsel) shall have the right
to review the pertinent documents.  The Company shall notify the Claimant of its
decision in writing within the sixty-day period,  stating specifically the basis
of its decision, written in a manner calculated to be understood by the Claimant
and the specific provisions of the Agreement on which the decision is based. If,
because of the need for a hearing,  the sixty-day period is not sufficient,  the
decision may be deferred for up to another  sixty-day  period at the election of
the Company, but notice of this deferral shall be given to the Claimant.

                                    Article 8

                           Amendments and Termination

         This  Agreement  may be amended or  terminated  by a written  agreement
signed by the Company and the Director.

                                    Article 9

                                  Miscellaneous

         9.1 Binding  Effect.  This  Agreement  shall bind the  Director and the
Company,  and their  beneficiaries,  survivors,  executors,  administrators  and
transferees.

         9.2 No  Guarantee  of Service.  This  Agreement  is not a contract  for
services.  It does not give the  Director  the right to remain a director of the
Company,  nor does it  interfere  with the  shareholders'  right to

                                       7
<PAGE>

replace the Director. It also does not require the Director to remain a director
nor interfere with the Director's right to terminate services at any time.

         9.3 Non-Transferability.  Benefits under this Agreement cannot be sold,
transferred, assigned, pledged, attached or encumbered in any manner.

         9.4 Tax  Withholding.  The Company  shall  withhold  any taxes that are
required to be withheld from the benefits provided under this Agreement.

         9.5  Applicable  Law. The Agreement and all rights  hereunder  shall be
governed by the laws of the Commonwealth of  Pennsylvania,  except to the extent
preempted by the laws of the United States of America.

         9.6 Unfunded  Arrangement.  The Director  and  beneficiary  are general
unsecured  creditors  of the  Company  for the  payment of  benefits  under this
Agreement.  The benefits  represent  the mere promise by the Company to pay such
benefits.  The rights to benefits are not subject in any manner to anticipation,
alienation,  sale, transfer,  assignment,  pledge,  encumbrance,  attachment, or
garnishment by creditors.

         9.7 Entire Agreement. This Agreement, together with the other documents
referenced  herein; (a) represents the entire agreement and understanding of the
parties; (b) supersedes all prior written or oral representations by the Company
concerning the subject matter hereto;  and (c) may not be modified  subsequently
by oral statements of or courses of dealings between the parties.  No rights are
granted to the Director by virtue of this plan other than those specifically set
forth herein.

         9.8  Severability.  Any provision  contained in this Agreement which is
prohibited or unenforceable in any jurisdiction  shall, as to such jurisdiction,
be effective only to the extent of such prohibition or unenforceability  without
invalidating  the  remaining  provisions  hereof,  and any such  prohibition  or
enforceability in any jurisdiction shall not invalidate or render  unenforceable
such provisions in any other jurisdiction.

         9.9  Headnotes.  The  headnotes  are for matters of reference  only and
shall  not  control  or  affect  the  interpretation  or  construction  of  this
Agreement.

                                       8
<PAGE>

         9.10.   Jurisdiction.   The  parties  agree  that  the  Courts  of  the
Commonwealth  of  Pennsylvania  located in Berks  County,  Pennsylvania,  or the
United States  District Court for the Eastern  District of  Pennsylvania,  shall
have  jurisdiction of all matters arising out of this Agreement and that service
of process in any such proceeding shall be effective if mailed to the parties at
the addresses  provided  herein or as maintained on the books and records of the
Company.  The parties  specifically  waive any right they may have to assert the
defense of forum non conveniens or to object to such  jurisdiction and venue and
hereby consent to the jurisdiction and venue of the Courts set forth herein.

         9.11 Waiver of Trial by Jury.  The parties  hereby agree that any suit,
action or proceeding,  whether claim or  counterclaim,  brought or instituted by
any party  hereto or any  successor or assign of any party on or with respect to
this  Agreement  or any other  document  which in any way  relates  directly  or
indirectly to this Agreement, or to any transaction or occurrence arising out of
or in any way connected with this Agreement, or the dealings of the parties with
respect  thereto,  shall be tried only by a Court and not by a jury. The consent
of the parties to this  paragraph is based upon the parties  agreement  that the
issues, transactions or occurrences arising under this Agreement are complicated
in nature and not easily susceptible to trial by jury.

         9.12 Litigation Costs and Expenses.  In the event any participant shall
seek to dispute the binding  effect of this Agreement in any manner or institute
any suite or proceeding, whether by litigation or otherwise with respect to this
Agreement or any other document which in any way directly or indirectly  relates
to this Agreement or to any  transaction or occurrence  arising out of or in any
way  connected  with this  Agreement or the dealings of the parties with respect
thereto,  and  such  dispute  shall  not  be  upheld  by a  Court  of  competent
jurisdiction,  as provided herein,  the participant  shall be responsible to the
Company  for any and all costs and  expenses  incurred in  connection  with such
dispute, including, without limitation, reasonable attorneys' fees.

         9.13 Administration.  The Company shall have powers which are necessary
to administer this Agreement, including but not limited to:

                  9.13.1 Interpreting the provisions of the Agreement;

                                       9
<PAGE>

                  9.13.2  Establishing and revising the method of accounting for
         the Agreement;

                  9.13.3 Maintaining a record of benefit payments; and

                  9.13.4  Establishing rules and prescribing any forms necessary
         or desirable to administer the Agreement.

         9.14 Restatement. This Agreement is an amendment and restatement of the
Original Agreement, which is hereby superseded.

         IN WITNESS WHEREOF,  the Director and a duly authorized Company officer
have signed this Agreement.

DIRECTOR:                                  COMPANY:
                                           BERNVILLE BANK,
                                           NATIONAL ASSOCIATION

___________________________                By:__________________________

                                           Title:_________________________

                                       10
<PAGE>

                                    EXHIBIT A

                      BERNVILLE BANK, NATIONAL ASSOCIATION
                         DIRECTOR DEFERRED FEE AGREEMENT

                                Deferral Election

1. I elect to defer my fees received from the Company, as follows:

         ------------------------------------------------------------

                               Amount of Deferral

         ============================================================

         [Initial and Complete one]

         ____ I elect to defer ____% of my fees

         ____ I elect to defer $____________

         ____ I elect not to defer any of my fees

         ------------------------------------------------------------

2. I elect my  "Normal  Termination  Date"  which  shall  trigger  payment of my
benefits under the Agreement as follows:

          ------------------------------------------------------------

                             Normal Termination Date

          ============================================================

         [Initial and Complete one]

         ____ Termination of Service as Director

         ____ Age 65

         ____ Later of the Above

          ------------------------------------------------------------

3. I elect to receive my benefits under the Agreement as follows:

          ------------------------------------------------------------

                               Distribution Method

          ============================================================

         [Initial and Complete one]

         ____ Lump Sum

         ____ Annual Installments Over Five Years

         ____ Annual Installments Over Ten Years

          ------------------------------------------------------------

                                       11
<PAGE>

     I  understand  that I may change the amount and duration of my deferrals by
     filing a new election form with the Company;  provided,  however,  that any
     subsequent election will not be effective until the calendar year following
     the year in which the new election is received by the Company.

Signature  ____________________________

Date   _______________________________

Accepted by the Company this _____ day of _____________, 200__.

By ______________________

     Title __________________

                                       12
<PAGE>

                             Beneficiary Designation

I hereby  designate the following as  beneficiary of benefits under the Director
Deferred Fee Agreement payable following my death:

Primary: ______________________________________________________________________

-----------------------------------------------------------------------------

Contingent:____________________________________________________________________

-----------------------------------------------------------------------------

Note: To name a trust as beneficiary,  please provide the name of the trustee(s)
and the exact name and date of ----- the trust agreement

I understand  that I may change these  beneficiary  designations by filing a new
written designation with the Company. I further understand that the designations
will be automatically  revoked if the beneficiary  predeceases me, or, if I have
named by spouse as beneficiary, in the event of the dissolution of our marriage.

Signature ________________________

Date ____________________________

Accepted by the Company this _____ day of _____________, 200__.

By ______________________

     Title __________________

                                       13EXECUTIVE SUPPLEMENTAL BENEFIT AGREEMENT

          AGREEMENT made as of this 27th day of December, 1989, among NATIONAL
PENN BANCSHARES, INC., a Pennsylvania business corporation having its principal
place of business in Boyertown, Pennsylvania ("NPB"), NATIONAL BANK OF
BOYERTOWN, a national banking association having its principal place of business
in Boyertown, Pennsylvania (the "Bank"), and LAWRENCE T. JILK, JR., an
individual residing in Boyertown, Pennsylvania (the "Executive").

                              W I T N E S S E T H:

          WHEREAS, the Executive has been employed since April 1977 and is
presently employed in the capacities of President of NPB and Chairman and Chief
Executive Officer of the Bank; and

          WHEREAS, the Executive has rendered many years of valuable service to
NPB and the Bank and it is the desire of the Boards of Directors of NPB and the
Bank that the Executive continue his employment in order that the experience he
has gained and the management ability he has demonstrated will continue to be
available to NPB and the Bank; and

          WHEREAS, to induce the Executive to remain employed, the Board of
Directors of the Bank, by an Executive Supplemental Benefit Agreement dated
October 19, 1984, provided the Executive with supplemental retirement benefits
and salary continuation protection for the dependents of the Executive in the
event of the Executive's death, which benefits and protection were guaranteed by
NPB; and

          WHEREAS, the Boards of Directors of NPB and the Bank deem it advisable
to amend and restate the 1984 Executive supplemental Benefit Agreement to
provide the Executive with certain additional benefits in the event of certain
changes in control of NPB or the Bank so that the Executive will continue to
attend to the business of NPB and the Bank without distraction in the face of
the potentially disturbing circumstances arising therefrom.

                                   AGREEMENT

          NOW, THEREFORE, in consideration of the mutual covenants and promises
set forth herein and intending to be legally bound hereby, NPB the Bank and the
Executive agree as follows:

                                       1
<PAGE>
          1. Definitions. The following terms have the meanings specified below:

             (a) "Affiliate" means any corporation which is included within a
     "controlled group of corporations" including NPB, as determined under
     Section 1563 of the Code.

             (b) "Average Monthly Salary Base" means the total of the
     Executive's monthly Salary for the sixty (60) months immediately prior to
     the month in which (i) he attains the age of sixty-five (65), (ii) he
     elects early retirement, (iii) he voluntarily terminates his Employment
     prior to attaining the age of sixty (60), or (iv) his employment is
     terminated by the Employer at any time prior to a Change in Control or
     Ownership other than for Cause, as the case may be, divided by the number
     sixty (60).

             (c) "Bank" means National Bank of Boyertown, a national banking
     association, or any successor thereto as set forth in Section 13 hereof.

             (d) "Bank Retirement Plan' means the defined benefit pension plan
     maintained now or in the future for the employees of the Bank or NPB.

             (e) "Cause" means as set forth in Section 5 hereof.

             (f) "Change in Control or Ownership" means:

                 (i) an acquisition by any "person" or "group" (as those terms
          are defined or used in Section 13(d) of the Exchange Act, as enacted
          and in force on the date hereof) of "beneficial ownership" (within the
          meaning of Rule 13d-3 under the Exchange Act, as enacted and in force
          on the date hereof) of securities of NPB representing 24.99% or more
          of the combined voting power of NPB's securities then outstanding;

                 (ii) a merger, consolidation or other reorganization of the
          Bank, except where the resulting entity is controlled, directly or
          indirectly, by NPB;

                 (iii) a merger, consolidation or other reorganization of NPB,
          except where shareholders of NPB immediately prior to consummation of
          any such transaction continue to hold at least a majority of the
          voting power of the outstanding voting securities of the legal entity
          resulting from or existing after any such transaction and a majority
          of the members of the Board of Directors of the legal entity resulting
          from or existing after any such transaction are former members of
          NPB's Board of Directors;

                                       2

<PAGE>

                 (iv) a sale, exchange, transfer or other disposition of
          substantially all of the assets of the Bank to another entity, except
          to an entity controlled, directly or indirectly, by NPB;

                 (v) a sale, exchange, transfer or other disposition of
          substantially all of the assets of NPB to another entity, or a
          corporate division involving NPB; or

                 (vi) a contested proxy solicitation of the shareholders of NPB
          which results in the contesting party obtaining the ability to cast
          25% or more of the votes entitled to be cast in an election of
          directors of NPB.

             (g) "Code" means the Internal Revenue Code of 1986, as amended, and
     as the same may be amended from time to time.

             (h) Designated Beneficiary" means the person designated by the
     Executive as his beneficiary under the Bank Retirement Plan, or in the
     absence of such a designation, his heirs at law.

             (i) "Disability" means the Executive's incapacitation by accident,
     sickness or otherwise which renders the Executive mentally or physically
     incapable of performing the services required of the Executive for three
     hundred sixty (360) consecutive days.

             (j) "Employer" means the Bank, NPB or any Affiliate which employs
     the Executive at any particular time.

             (k) "Employment" means the Executive's employment by the Bank, NPB
     or any Affiliate at any particular time.

             (1) "Exchange Act" means the Securities Exchange Act of 1934, as
     amended.

             (m) "NPB" means National Penn Bancshares, Inc., the Pennsylvania
     corporation and bank holding company is the parent of the Bank, or any
     successor thereto as set forth in Section 13 hereof.

             (n) "Normal Retirement Date" means the first day of the first
     calendar month following the Executive's 65th birthday.

                                       3

<PAGE>
             (o) "Salary" means the Executive's base salary established annually
     by the Board of Directors of the Employer, prior to any reduction of such
     salary pursuant to any contribution to a tax-qualified plan under Section
     401(k) of the Code.

             (p) "Tax Change" means a change (i) in the ownership or effective
     control of NPB or (ii) in the ownership of a substantial portion of the
     assets of NPB, determined pursuant to regulations promulgated under Section
     28OG of the Code. Such term also means any similar change with respect to
     the Bank or an Affiliate, to the extent provided in such regulations.

          2. Supplemental Retirement Benefits.

             (a) Normal Retirement. If the Executive's Employment continues
     until he attains the age of sixty-five (65) and the Executive retires at
     age sixty-five (65), then the Employer of the Executive shall pay to the
     Executive monthly payments, each in an amount equal to sixty-five percent
     (65%) of the Average Monthly Salary Base, for a period of one hundred
     twenty (120) months, commencing on the Normal Retirement Date. If the
     Executive dies before he has received or commenced to receive all of such
     one hundred twenty (120) monthly payments, then the provisions of
     subsection 6(a) hereof shall apply,

             (b) Later Retirement. If the Executive's Employment continues until
     he attains the age of sixty-five (65) and, at the request of the Board of
     Directors of the Employer of the Executive, the Executive chooses to
     continue to perform services thereafter, for such compensation as may be
     mutually agreed upon at that time or from time to time, and if thereafter
     the Executive's Employment shall terminate for any reason, other than
     termination for Cause, then the Employer of the Executive shall pay to the
     Executive monthly payments, each in an amount equal to sixty-five percent
     (65%) of the Average Monthly Salary Base, for a period of one hundred
     twenty (120) months, commencing on the first day of the first calendar
     month following the Executive's termination of Employment. For purposes of
     this subsection 2(b) only, the "Average Monthly Salary Base" shall be the
     greater of (i) the total of the Executive's monthly Salary for the sixty
     (60) months prior to his attainment of age sixty-five (65) or (ii) the
     total of the Executive's monthly Salary for the sixty (60) months prior to
     his termination of Employment, divided by the number sixty (60). If the
     Executive dies before he has received or commenced to receive all of the
     payments to which he is entitled pursuant to this subsection 2(b), then the
     applicable provision of Section 6 hereof shall apply.

                                       4

<PAGE>
             (c) Early Retirement. If the Executive's Employment continues and
     the Executive elects to retire early between the ages of sixty (60) and
     sixty-five (65), then the Employer of the Executive shall pay to the
     Executive monthly payments, each in an amount equal to sixty-five percent
     (65%) of the Average Monthly Salary Base, reduced by an amount equal to
     one-quarter percent (1/4%) thereof for each month by which the date that
     benefit payments are to commence under this subsection 2(c) precedes the
     Executive's Normal Retirement Date, for a period of one hundred twenty
     (120) months, commencing on the first day of the first calendar month
     following the Executive's early retirement. If the Executive dies before he
     has received or commenced to receive all of the payments to which he is
     entitled pursuant to this subsection 2(c), then the applicable provision of
     section 6 hereof shall apply.

             (d) Voluntary Termination. If the Executive's Employment continues
     and prior to the Executive's attaining the age of sixty (60), the Executive
     voluntarily terminates his Employment or, if at any time prior to a Change
     in Control or Ownership the Executive is discharged for a reason other than
     Cause, then the Employer of the Executive shall pay to the Executive
     monthly payments, each in an amount equal to the Average Monthly Salary
     Base multiplied by a fraction (the numerator of which is the number of full
     years of the Executive's Employment from April 1977 to the date of
     termination of Employment and the denominator of which is the number
     twenty-six (26)) and multiplied by sixty-five percent (65%), for a period
     of one hundred twenty (120) months, commencing on the first day of the
     calendar month selected by the Executive, provided that at such date he
     shall then be between the ages of fifty-five (55) and sixty-five (65). If
     the Executive dies before he has received or commenced to receive all of
     such one hundred twenty (120) monthly payments, then the applicable
     provision of Section 6 hereof shall apply.

          3. Resignation of Executive. If a Change in Control or Ownership shall
occur and if thereafter, at any time, there shall be:

                 (i) any involuntary termination of the Executive's employment
          (other than for Cause or Disability);

                 (ii) any reduction in the Executive's title, responsibilities,
          including reporting responsibilities, or authority, including such
          title, responsibilities or authority as such may be increased from
          time to time;

                                       5

<PAGE>
                 (iii) the assignment to the Executive of duties inconsistent
          with the Executive's office immediately prior to a Change in Control
          or Ownership or as the same may be increased from time to time after a
          Change in Control or Ownership;

                 (iv) any reassignment of the Executive to a location farther
          than a thirty (30) minute commute by automobile from Boyertown,
          Pennsylvania;

                 (v) any reduction in the Executive's annual base salary in
          effect immediately prior to a Change in Control or Ownership or as the
          same may be increased from time to time after a Change in Control or
          Ownership;

                 (vi) any failure to continue the Executive's participation, on
          substantially similar terms, in any of the incentive compensation or
          bonus plans of NPB or an Affiliate in which the Executive participated
          at the time of the Change in Control or Ownership or any change or
          amendment to any of the substantive provisions of any of such plans
          which would materially decrease the potential benefits to the
          Executive under any of such plans;

                 (vii) any failure to provide the Executive with benefits at
          least as favorable as those enjoyed by the Executive under any of the
          pension, life insurance, medical, health and accident, disability or
          other employee plans of NPB or an Affiliate in which the Executive
          participated immediately prior to a Change in Control or Ownership, or
          the taking of any action that would materially reduce any of such
          benefits in effect at the time of the Change in Control or Ownership,
          unless such reduction relates to a reduction in benefits applicable to
          all employees generally,

                 (viii) any requirement that the Executive travel in performance
          of his duties on behalf of NPB or an Affiliate for a greater period of
          time during any year than was required of the Executive during the
          year preceding the year in which the Change in Control or ownership
          occurred;

                 (ix) any failure of the Board of Directors of NPB or the Bank,
          respectively, to nominate the Executive for election as a member of
          the Board of Directors of NPB or the Bank, as the case may be, at the
          expiration of the Executive's then existing term;

                                       6

<PAGE>
                 (x) any sustained pattern of interruption or disruption of the
          Executive for matters substantially unrelated to the Executive's
          discharge of the Executive's duties on behalf of NPB or an Affiliate;
          or

                 (xi) any breach of this Agreement of any nature whatsoever on
          the part of NPB or the Bank;

then, at the option of the Executive, exercisable by the Executive within one
hundred eighty (180) days of the occurrence of each and every of the forgoing
events, the Executive may resign from employment (or, if involuntarily
terminated, give notice of intention to collect benefits hereunder) by
delivering a notice in writing (the "Notice of Termination) to NPB and the Bank
and the provisions of Section 4 of this Agreement shall apply.

          4. Continuing Compensation and Benefits.

                 (a) (i) If, at the time of termination of the Executive's
          employment in accordance with Section 3 hereof, a Tax Change has also
          occurred, NPB shall make a lump-sum cash payment to the Executive no
          later than thirty (30) days following the date of such termination in
          an amount ("X") determined pursuant to the following formula:
                                   D
          X = (2.99A - B) x (1 + C) .

          For the purpose of the foregoing formula,

          A  = the Executive's base amount (determined pursuant to Code
               Section 280G(b)(3)(A)) on the date of the Tax Change;

          B  = the present value of all other amounts which qualify as
               parachute payments under Code Section 28OG(b)(2)(A) or (B)
               (without regard to the provisions of Code Section
               28OG(b)(2)(A)(ii)), such present value to be determined pursuant
               to the provisions of Code Section 280G;

          C  = 120% times 0.5 times the lowest of the semiannual applicable
               federal rates (determined pursuant to Code Section 1274(d)) in
               effect on the date of the Tax Change; and

          D  = the number of whole semiannual periods plus any fraction of a
               semiannual period from the later of the date of the Tax Change or
               the Change in Control or Ownership to the date of termination of
               the Executive's employment.

                                       7

<PAGE>
          Notwithstanding the foregoing or any other provision of this Agreement
          to the contrary, if the amount determined under "B" above equals or
          exceeds 2.99 times the amount determined under "A" above, no payment
          shall be made to the Executive under this Section 4.

                 (ii) If. at the time of termination of the Executive's
          employment in accordance with Section 3 hereof, a Tax Change has not
          occurred, NPB shall make lump-sum cash payment to the Executive no
          later than thirty (30) days following the date of such termination in
          an amount equal to (A) 2.99 times the lesser of (I) the Executive's
          base amount determined pursuant to the principles set forth in the
          regulations promulgated under Code Section 28OG(b)(3)(A) and as though
          a Tax Change had occurred on the date of the Executive's termination
          of employment and (II) the Executive's base amount so determined but
          as though a Tax Change will occur in the calendar year following the
          date of the Executive's termination of employment, minus (B) any other
          amounts paid or payable within thirty (30) days following the
          Executive's termination of employment which would constitute (or be
          presumed to constitute) parachute payments under Code Section
          28OG(b)(2)(A) or (B) (without regard to the provisions of Code Section
          280G(b)(2)(A)(ii)) if a Tax Change had occurred on the date of such
          termination of employment.

             (b) The Executive shall not be required to mitigate the amount of
     any payment provided for in subsection 4(a) by seeking other employment or
     otherwise, nor shall the amount of any payment or benefit provided for in
     subsection 4(a) be reduced by any compensation earned by the Executive as
     the result of employment by another employer or by reason of the
     Executive's receipt of or right to receive any retirement or other benefits
     after the date of termination of employment or otherwise, except as
     otherwise provided therein.

             (c) Upon written request of the Executive, the Employer's
     obligation to make the payment under this Section 4 shall be secured in
     total (i) by a stand-by letter of credit obtained by NPB from a recognized
     financial institution the long-term obligations of which are rated, on the
     date of such request, investment grade or better by Standard & Poor's
     Corporation or Moody's Investors Service, Inc. or (ii) by such other
     security as the Executive shall approve, obtained within ten (10) days of
     the Executive's written request following a change in Control or Ownership.

             (d) NPB shall pay all reasonable legal fees and related expenses
     (including the costs of experts, evidence and counsel and expenses included
     in connection with an

                                       8

<PAGE>

     arbitration or in other litigation or appeal) incurred by the Executive as
     a result of (i) his delivery of a Notice of Termination or (ii) his seeking
     to obtain or enforce any right or benefit provided by this Agreement.

          5. Termination for Cause. The Employer may terminate the Executive's
Employment for "Cause." For purposes of this Agreement, "Cause" means the
occurrence of either of the following:

             (a) the Executive's conviction of, or plea of guilty or nolo
     contendere to, a felony or a crime of falsehood or involving moral
     turpitude; or

             (b) the willful failure by the Executive to substantially perform
     his duties to the Employer, other than a failure resulting from the
     Executive's incapacity as a result of the Executive's Disability, which
     willful failure results in demonstrable material injury and damage to the
     Employer. Notwithstanding the foregoing, the Executive's Employment shall
     not be deemed to have been terminated for Cause if such termination took
     place as a result of:

                 (i) questionable judgment on the part of the Executive;

                 (ii) any act or omission believed by the Executive in good
          faith, to have been in or not opposed to the best interests of the
          Employer; or

                 (iii) any act or omission in respect of which a determination
          could properly be made that the Executive met the applicable standard
          of conduct prescribed for indemnification or reimbursement or payment
          of expenses under the By-laws of NPB, or the laws of the Commonwealth
          of Pennsylvania, or the directors and officers' liability insurance of
          NPB or any Employer, in each case as in effect at the time of such act
          or omission.

If the Executive's Employment is terminated for Cause, all rights of the
Executive under this Agreement shall cease as of the effective date of such
termination, except that the Executive (i) shall be entitled to receive accrued
Salary through the date of such termination and (ii) shall be entitled to
receive the payments and benefits to which he is then entitled under the
employee benefit plans of the Employer or any Affiliate thereof as of the date
of such termination.

                                       9

<PAGE>
          6. Provisions for Protection of Designated Beneficiary.

             (a) Continuation of Payments. If the Executive shall become
     entitled to payments under the provisions of Sections 2 or 4 hereof and
     shall die before receiving all of the payments that he is entitled to
     receive, then the remaining payments shall be made to the Executive's
     Designated Beneficiary.

             (b) Special Payments. If the Executive shall die while employed by
     an Employer at a time when he was eligible to have previously retired
     pursuant to subsection 2(b) or 2(c) hereof or to have previously terminated
     his Employment voluntarily pursuant to subsection 2(d) hereof, then for
     purposes of this subsection 6(b), the date of the Executive's death shall
     be deemed to be the date of an election by the Executive to retire from, or
     voluntarily terminate his, Employment. In such event, the Employer shall
     pay to the Designated Beneficiary monthly payments as provided in
     subsection 2(b), 2(c) or 2(d), as the case may be.

          7. Employee Benefits. The Executive will be entitled to participate in
all employee benefit programs of the Employer and any Affiliate thereof
including, without limitation, the pension and profit-sharing plans, medical
insurance programs and group life insurance programs as may from time to time be
in effect. The payments to be made under Sections 2 or 6 of this Agreement shall
be reduced by any amount concurrently payable to the Executive or to the
Designated Beneficiary pursuant to the Bank Retirement Plan. Any payments to be
made under this Agreement shall not be deemed Salary or other compensation to
the Executive for the purpose of computing benefits to which he may be entitled
under any pension plan or other arrangement of the Employer or any Affiliate
thereof for the benefit of their employees.

          8. Arbitration. Any dispute or controversy arising out of or relating
to this Agreement and any controversy as to a termination for Cause shall be
settled exclusively by arbitration, conducted before a panel of three
arbitrators, in Reading, Pennsylvania, in accordance with the rules of the
American Arbitration Association then in effect. Judgment may be entered on the
arbitrators' award in any court having jurisdiction.

          9. Exclusive Benefit. Neither the Executive nor his spouse nor any
other Designated Beneficiary, shall have the right to commute, sell, assign,
transfer or otherwise convey the right to receive any payments hereunder, which
payment and the right thereto are expressly declared to be non-assignable and
non-transferable. In the event of any attempted assignment or transfer, the
Employer shall have no further liability hereunder.

                                       10

<PAGE>
The interest of any beneficiary in any benefits hereunder shall not be subject
to attachment, execution or sequestration for any debts, contracts, obligations
or liabilities of any beneficiary and shall not be subject to pledge,
assignment, conveyance or attachment.

          10. Unsecured General Creditor. If the Employer shall acquire an
insurance policy or any other asset in connection with the liabilities assumed
by it hereunder, it is expressly understood and agreed that neither the
Executive nor his spouse nor any other Designated Beneficiary shall have any
right with respect to, or claimed against, such policy or other asset, and that
the Executive shall remain at all times an unsecured general creditor with
respect to any amount payable hereunder. The provisions of this Section 10 shall
not apply with respect to any security obtained by NPB under subsection 4(c) of
this Agreement.

          11. Notices. Any notice required or permitted to be given under this
Agreement shall be properly given if in writing and if mailed by registered or
certified mail, postage prepaid with return receipt requested, to the
Executive's residence in the case of any notice to the Executive, or to the
principal office of the Bank, in the case of any notice to the Employer.

          12. Entire Agreement. This Agreement contains the entire agreement
relating to the subject matter hereof and may not be modified, amended or
changed orally but only by an agreement in writing, consented to in writing by
NPB, and signed by the party against whom enforcement of any modification,
amendment or change is sought.

          13. Benefits.

             (a) This Agreement shall be binding upon and inure to the benefit
     of NPB, the Bank and their respective successors and assigns. Each of NPB
     and the Bank shall require any successor (whether direct or indirect, by
     purchase, merger, consolidation, or otherwise) to all or substantially all
     of the business and/or assets of NPB or the Bank to expressly assume and
     agree to perform this Agreement in the same manner and to the same extent
     that NPB or the Bank would be required to perform it if no such succession
     had taken place. Failure to obtain such assumption and agreement prior to
     the effectiveness of any such succession shall constitute a breach of this
     Agreement and the provisions of Section 3 of this Agreement shall apply. As
     used in this Agreement, "NPB" or "the Bank" shall mean NPB or the Bank as
     defined previously and any successor to the business and/or assets of NPB
     or the Bank as aforesaid which assumes and agrees to perform this Agreement
     by operation of law or otherwise.

             (b) This agreement shall be binding upon and inure to the benefit
     of and be enforceable by the Executive's personal or legal representatives,
     executors, administrators, heirs, distributees, devisees, and legatees.

                                       11

<PAGE>
          14. Applicable Law. This Agreement shall be governed by and construed
in accordance with the domestic internal law (but not the law of conflicts of
law) of the Commonwealth of Pennsylvania.

          15. Headings. The headings of the sections and subsections hereof are
for convenience only and shall not control or affect the meaning or construction
or limit the scope or intent of any of the sections or subsections of this
Agreement.

          16. Termination of 1984 Agreement. This Agreement replaces and
supersedes in its entirety the Executive Supplemental Benefit Agreement dated
October 19, 1984 between the Executive and the Bank.

          IN WITNESS WHEREOF, NPB and the Bank have each caused this Agreement
to be executed on its behalf by its duly authorized officers, and the Executive
has hereunto set his hand and seal, as of the day and year first above written.

                                       NATIONAL PENN BANCSHARES, INC.

(SEAL)                                 By /s/ James K. Boyer
                                          -------------------------------
                                       Attest: /s/ Sandra L. Spayd
                                               --------------------------

                                       NATIONAL BANK OF BOYERTOWN

(SEAL)                                 By /s/ James K. Boyer
                                          -------------------------------
                                       Attest: /s/ Sandra L. Spayd
                                               --------------------------
Witness:

/s/ Sandra L. Spayd                    /s/ Lawrence T. Jilk, Jr.
----------------------------------     ----------------------------------(SEAL)
                                             Lawrence T. Jilk, Jr.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00022-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00022-of-00352.parquet"}]]