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Exhibit 10.2  

 
  EMPLOYMENT AGREEMENT    
    

        EMPLOYMENT AGREEMENT, dated as
of                            , 2004, between Abington Savings Bank, a Pennsylvania-chartered, stock-form
savings
bank doing business as "Abington Bank" (the "Bank" or the "Employer"), and                        (the "Executive"). 

 
 

WITNESSETH    
    

        WHEREAS, the Executive is presently an officer of the Bank; 

        WHEREAS,
the Employer desires to be ensured of the Executive's continued active participation in the business of the Employer; and 

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

        NOW
THEREFORE, in consideration of the premises and the mutual agreements herein contained, the parties hereby agree as follows: 

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

        (a)    Average Annual Compensation.    The Executive's "Average Annual Compensation" for
purposes of this Agreement shall be deemed to mean the average amount of Base Salary and cash bonus received by the Executive from the Employer or any subsidiary thereof (excluding any deferred
amounts) during the most recent five calendar years preceding the Date of Termination (or such shorter period as the Executive was employed). 

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

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

        (d)    Change in Control of the Corporation.    "Change in Control of the Corporation" shall
mean the occurrence of any of the following: (i) an event that would be required to be reported by, or with respect to, the Corporation in response to Item 1(a) of Form 8-K
or Item 6(e) of Schedule 14A of Regulation 14A pursuant to the Securities Exchange Act of 1934, as amended ("Exchange Act"), or any successor thereto, whether or not any class of
securities of the Corporation is registered under the Exchange Act; (ii) any "person" (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) other than the MHC is or becomes the
"beneficial owner" (as defined in Rule 13d-under the Exchange Act), directly or indirectly, of securities of the Corporation representing 20% or more of the combined voting power of the
Corporation's then outstanding securities; or (iii) during any period of three consecutive years, individuals who at the beginning of such period constitute the Board of Directors of the
Corporation cease for any reason to constitute at least a majority thereof unless the election, or the nomination for election by stockholders, of each new director was approved by a vote of at least
two-thirds of the directors then still in office who were directors at the beginning of the period; provided, however, that no Change in Control of the Corporation shall be deemed to have
occurred solely because the MHC undertakes a "second-step" mutual to stock conversion. 

 

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

        (f)    Corporation.    "Corporation" shall mean Abington Community Bancorp, Inc., the
"mid-tier" holding company for the Bank, or any successor thereto. 

        (g)    Date of Termination.    "Date of Termination" shall mean (i) if the Executive's
employment is terminated for Cause or for Disability, the date specified in the Notice of Termination, and (ii) if the Executive's employment is terminated for any other reason, the date on
which a Notice of Termination is given or as specified in such Notice. 

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

        (i)    Good Reason.    Termination by the Executive of the Executive's employment for "Good
Reason" shall mean termination by the Executive within twenty-four (24) months following a Change in Control of the Corporation based on: 

        (i)    Without
the Executive's express written consent, the failure to elect or to re-elect or to appoint or to re-appoint the Executive to the office
of Senior Vice President of the Employer or a material adverse change made by the Employer in the Executive's functions, duties or responsibilities as Senior Vice President of the Employer; 

        (ii)   Without
the Executive's express written consent, a reduction by the Employer in the Executive's Base Salary as the same may be increased from time to time or, except to
the extent permitted by Section 3(b) hereof, a reduction in the package of fringe benefits provided to the Executive, taken as a whole; 

        (iii)  The
principal executive office of the Employer is relocated more than 20 miles from the Employer's current main office location in Jenkintown, Pennsylvania, or,
without the Executive's express written consent, the Employer requires the Executive to be based anywhere other than an area in which the Employer's principal executive office is located, except for
required travel on business of the Employer to an extent substantially consistent with the Executive's present business travel obligations; 

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

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

        (j)    IRS.    "IRS" shall mean the Internal Revenue Service. 

        (k)    MHC.    "MHC" shall mean Abington Mutual Holding Company, the parent mutual holding
company for the Corporation and the Bank. 

        (l)    Notice of Termination.    Any purported termination of the Executive's employment by
the Employer for any reason, including without limitation for Cause, Disability or Retirement, or by the Executive for any reason, including without limitation for Good Reason, shall be communicated
by written "Notice of Termination" to the other party hereto. For purposes of this Agreement, a "Notice of Termination" shall mean a dated notice which (i) indicates the specific termination
provision in this Agreement relied upon, (ii) sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive's employment under the
provision so indicated, (iii) specifies a Date of Termination, which shall be not less than thirty 

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(30) nor
more than ninety (90) days after such Notice of Termination is given, except in the case of the Employer's termination of the Executive's employment for Cause, which shall be
effective immediately; and (iv) is given in the manner specified in Section 10 hereof. 

        (m)    Retirement.    "Retirement" shall mean voluntary termination by the Executive in
accordance with the Employer's retirement policies, including early retirement, generally applicable to the Employer's salaried employees. 

        2.    Term of Employment.    

        (a)   The
Employer hereby employs the Executive as Senior Vice President and the Executive hereby accepts said employment and agrees to render such services to the Employer on
the terms and conditions set forth in this Agreement. Subject to the terms hereof, this Agreement shall terminate three (3) years after the date first above written. Beginning on the day which
is one year subsequent to the date first above written, and on each annual anniversary thereafter, the term of this Agreement shall be extended for a period of one additional year provided that the
Employer has not given notice to the Executive in writing at least 30 days prior to such day that the term of this Agreement shall not be extended further and/or the Executive has not given
notice to the Employer of his election not to extend the term at least thirty (30) days prior to any such anniversary date. If any party gives timely notice that the term will not be extended
as of any such annual anniversary date, then this Agreement
shall terminate at the conclusion of its remaining term. References herein to the term of this Agreement shall refer both to the initial term and successive terms. 

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

        3.    Compensation and Benefits.    

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

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

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

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vacation
time from one year to the next, except to the extent authorized by the Board of Directors of the Employer. 

        4.    Expenses.    The Employer shall reimburse the Executive or otherwise provide for or pay for all reasonable
expenses incurred by the Executive in furtherance of, or in connection with the business of
the Employer, including, but not by way of limitation, automobile and traveling expenses, subject to such reasonable documentation and other limitations as may be established by the Board of Directors
of the Employer. If such expenses are paid in the first instance by the Executive, the Employer shall reimburse the Executive therefor. 

        5.    Termination.    

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

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

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

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

        (A)  pay
to the Executive, in either twelve (12) equal monthly installments beginning with the first business day of the month following the Date of Termination or in
a lump sum within five business days of the Date of Termination (at the Executive's election), a cash severance amount equal to one times the Executive's current Base Salary; provided, however, that
this Section 5(d) shall not be applicable if the termination of employment occurs concurrently with or subsequent to a Change in Control of the Corporation; and 

        (B)  maintain
and provide for a period ending at the earlier of (i) one (1) year subsequent to the Date of Termination or (ii) the date of the
Executive's full-time employment by another employer (provided that the Executive is entitled under the terms of such employment to benefits substantially similar to those described in
this subparagraph (B)), at no cost to the Executive, the Executive's continued participation in all group insurance, life insurance, health and accident, disability and other employee benefit plans,
programs and arrangements in which the Executive was entitled to participate immediately prior to the Date of Termination (other than stock option and restricted stock plans of the Employer), provided
that in the event that the Executive's participation in any plan, program or arrangement as provided in this subparagraph (B) is barred or during such period any such plan, program or
arrangement is discontinued or the benefits thereunder materially reduced, the Employer shall arrange to provide the Executive with benefits substantially similar to those which the Executive was
entitled to receive under such plans, programs and arrangements immediately prior to the Date of Termination. 

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        (e)   In
the event that (i) the Executive's employment is terminated concurrently with or subsequent to a Change in Control of the Corporation for other than Cause,
Disability, Retirement or the Executive's death or (ii) the Executive elects to terminate his employment for Good Reason, then the Employer shall, subject to the provisions of Section 6
hereof, if applicable, 

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

        (B)  maintain
and provide for a period ending at the earlier of (i) three (3) years subsequent to the Date of Termination or (ii) the date of the
Executive's full-time employment by another employer (provided that the Executive is entitled under the terms of such employment to benefits substantially similar to those described in
this subparagraph (B)), at no cost to the Executive, the Executive's continued participation in all group insurance, life insurance, health and accident, disability and other employee benefit plans,
programs and arrangements in which the Executive was entitled to participate immediately prior to the Date of Termination (other than stock option and restricted stock plans of the Employer), provided
that in the event that the Executive's participation in any plan, program or arrangement as provided in this subparagraph (B) is barred or during such period any such plan, program or
arrangement is discontinued or the benefits thereunder are materially reduced, the Employer shall arrange to provide the Executive with benefits substantially similar to those which the Executive was
entitled to receive under such plans, programs and arrangements immediately prior to the Date of Termination. 

        6.    Limitation of Benefits under Certain Circumstances.    If the payments and benefits pursuant to Section 5
hereof, either alone or together with other payments and benefits which the Executive has the right to receive from the Employer, would constitute a "parachute payment" under Section 280G of
the
Code, the payments and benefits payable by the Employer pursuant to Section 5 hereof shall be reduced, in the manner determined by the Executive, by the amount, if any, which is the minimum
necessary to result in no portion of the payments and benefits under Section 5 being non-deductible to the Employer pursuant to Section 280G of the Code and subject to the
excise tax imposed under Section 4999 of the Code. The determination of any reduction in the payments and benefits to be made pursuant to Section 5 shall be based upon the opinion of
independent tax counsel selected by the Employer and paid by the Employer. Such counsel shall be reasonably acceptable to the Employer and the Executive; shall promptly prepare the foregoing opinion,
but in no event later than thirty (30) days from the Date of Termination; and may use such actuaries as such counsel deems necessary or advisable for the purpose. Nothing contained herein shall
result in a reduction of any payments or benefits to which the Executive may be entitled upon termination of employment under any circumstances other than as specified in this Section 6, or a
reduction in the payments and benefits specified in Section 5 below zero. 

        7.    Mitigation; Exclusivity of Benefits.    

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

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

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

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

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

	To the Employer:	 	Board of Directors

Abington Savings Bank

180 Old York Road

Jenkintown, Pennsylvania
	

To the Executive:	
 	

[Home Address]

        11.    Amendment; Waiver.    No provisions of this Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in writing and signed by the Executive and such officer or officers as may be specifically designated by the Board of Directors of the Employer to sign on its
behalf. No waiver by any party hereto at any time of any breach by any other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall
be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. 

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

        13.    Nature of Obligations.    Nothing contained herein shall create or require the Employer to create a trust of
any kind to fund any benefits which may be payable hereunder, and to the extent that the Executive acquires a right to receive benefits from the Employer hereunder, such right shall be no greater than
the right of any unsecured general creditor of the Employer. 

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

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

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

        17.    Regulatory Prohibition.    Notwithstanding any other provision of this Agreement to the contrary, any payments
made to the Executive pursuant to this Agreement, or otherwise, are subject to 

6

 

and
conditioned upon their compliance with Section 18(k) of the FDIA (12 U.S.C. §1828(k)) and the regulations promulgated thereunder, including 12 C.F.R. Part 359. In the
event of the Executive's termination of employment with the Bank for Cause, all employment relationships and managerial duties with the Bank shall immediately cease regardless of whether the Executive
is in the employ of the Corporation following such termination. Furthermore, following such termination for Cause, the Executive will not, directly or indirectly, influence or participate in the
affairs or the operations of the Bank. 

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

        19.    Entire Agreement.    This Agreement embodies the entire agreement between the Employer and the Executive with
respect to the matters agreed to herein. All prior agreements between the Employer and the Executive with respect to the matters agreed to herein are hereby superseded and shall have no force or
effect. 

        IN
WITNESS WHEREOF, this Agreement is effective as of the date first above written. 

	

Attest	
 	
ABINGTON SAVINGS BANK
	

 	
 	

By:	

 
	
	 	 	
 Robert W. White

President and Chief Executive Officer
	

 	
 	
EXECUTIVE
	

 	
 	

By:	

 
	 	 	 	
 [Name]

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Exhibit 10.3  

 
  ABINGTON SAVINGS BANK
  BOARD OF TRUSTEES DEFERRED COMPENSATION PLAN    
    

 
  ARTICLE I    
    
    PURPOSE    
    

        The Board of Trustees (Board) of Abington Savings Bank (Bank) hereby establishes this Trustee Deferred Compensation Plan (Plan), effective as of January 1,
1996, for the purpose of providing individual trustees with a benefit plan to accumulate wealth in excess of the benefits provided by the Retirement Plan. 

 
 

ARTICLE II    
    
    DEFINITIONS    
    

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

        2.1.    Accumulation Account.    the account maintained on the books of the Bank for each Participant with respect to
the Plan. Each Participant's Accumulation Account shall consist of such sub- accounts as may be necessary to reflect each Plan Year's allocation and such further sub-accounts
as the Committee may deem necessary. A Participant's Accumulation
Account shall be utilized solely as a device for the measurement and determination of any benefits payable to the Participant pursuant to this Plan. A Participant shall have no interest in his or her
Accumulation Account, nor shall it constitute or be treated as a trust fund of any kind. 

        2.2.    Base Fee.    for a Plan Year, the Base Fee payable to a Participant by the Bank in that Plan Year. 

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

        2.4.    Board.    the Board of Trustees of ABINGTON SAVINGS BANK. 

        2.5.    Committee.    the Employee Benefit Committee. 

        2.6.    Deferral Benefit.    the benefit payable to a Participant (or Beneficiary) under the Plan, as provided in
Article VI. 

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

        2.8.    Disability or Disabled.    the continuation of such an impairment of the physical or mental condition of a
Participant, which would prevent the Trustee from fulfilling his or her duties as determined by the Employee Benefit Committee. 

        2.9.    Participant.    a Trustee who has elected to participate in the Plan for the following Plan Year. 

        2.10.    Plan Year.    the calendar year commencing January 1 and each successive calendar year. Nothing herein
contained shall prevent the Board from changing to a fiscal year. 

        2.11.    Retirement Age.    the first day of the first year following the Participant's seventy-fifth (75th) birthday. 

        2.12.    Retirement Date.    the date of a Participant's Retirement after having attained Retirement Age. 

 

        2.13.    Spouse.    a Participant's wife or husband who was lawfully married to the Participant. 

        2.14.    Termination of service.    the Participant's ceasing to be a member of the Board for any reason whatsoever. 

        2.15.    Trustee.    a member of the Board of Trustees of the Bank. 

 
 

ARTICLE III    
    
    ADMINISTRATION    
    

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

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

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

 
 

ARTICLE IV    
    
    PARTICIPATION    
    

        4.1.    Participation.    Participation in the Plan shall be limited to those Trustees who elect to participate by
informing the Committee in writing prior to January First and July First of each Plan Year. 

        4.2.    Deferral Amount.    Each Plan Year, the Board shall, in its sole discretion, elect to contribute such amount
of the Basic Fee as it may determine to the Accumulation Account of the Participant. 

 
 

ARTICLE V    
    
    ACCUMULATION ACCOUNT    
    

        5.1.    Determination of Account.    The Accumulation Account of a Participant as of each Determination Date shall
consist of the balance of such Accumulation Account as of the immediately preceding Determination Date; plus any allocation under §4.2 of this Plan for the current Plan Year, less any
amounts distributed from the Accumulation Account since the immediately preceding Determination Date; plus an annual increase in the value of each Participant's Accumulation Account as of the
preceding Determination Date equal to the value of the Participant's Accumulation Account multiplied by the Bank's average of the average cost of money and the average yield on the interest bearing
assets. 

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

2

 

 
 

ARTICLE VI    
    
    BENEFITS    
    

        6.1.    Deferral Benefits.    A Deferral Benefit shall be payable as provided in the following paragraphs: 

        a.     In
the event a Participant's service with the Board shall terminate for reasons other than death or Disability and Participant has not attained his or her Retirement Age,
the Deferral Benefit shall be distributed within a reasonable time following notice of termination in the form of payment indicated on the Participant's election form. The form of benefit payment may
be a single lump sum payment or installment payments not in excess of fifteen years equal to the value of the Participant's Accumulation Account as of the Determination Date coincident with or next
following his or her termination of service. 

        b.     In
the event a Participant's service with the Board has terminated after he or she attains Retirement Age, the Deferral Benefit shall be determined pursuant to
¶6.2. 

        c.     In
the event of the death of a Participant prior to termination of service (whether or not the Participant attained Retirement Age), the Deferral Benefit shall be
determined pursuant to ¶6.3. 

        d.     In
the event of termination of a Participant's employment with the Board prior to attaining Retirement Age due to Disability, the Deferral Benefit shall be determined
pursuant to ¶6.4. 

        6.2.    Retirement Benefit.    Upon a Participant's Termination of Service with the Board on or after Retirement
Date, he or she shall be entitled to a Retirement Benefit equal to the total amount of his or her Accumulation Account determined under ¶5.1. Election of the Retirement Benefit shall be
either a single lump sum payment, or monthly installment payments over a period not in excess of fifteen years as elected by the Plan Participant. Payment of the Retirement Benefit shall include any
earnings on the outstanding undistributed and unpaid balance of the Retirement Benefit. A new monthly installment payment shall be calculated for each successive Plan year based on the earnings, if
any, on the Participant's outstanding undistributed and unpaid balance of the Retirement Benefit. 

        6.3.    Death.    Upon the death of a Participant prior to Termination of Service, the Beneficiary of the deceased
Participant shall be paid a benefit amount equal to 100% of his or her Accumulation Account. Payment of Death Benefits shall be in a single lump sum payment and shall be paid within ninety days after
the Administrator has notification of a Participant's death. 

        6.4.    Disability.    If a Participant's service with the Board terminates prior to his or her having attained
Retirement Age due to Disability, the Participant will be deemed to be entitled to benefits as if the Participant had reached his or her Retirement Age. The Participant shall be entitled to Retirement
Benefits as set forth in ¶6.2 upon continuous Disability for a period of six months. 

        6.5.    Emergency Benefit, Waiver of Deferral.    In the event that the Committee, upon written petition of the
Participant determines, in its sole discretion, that the Participant has suffered a financial emergency and the Participant is petitioning for an emergency benefit under the Plan prior to any request
for a hardship withdrawal under IRC § 401 (k), the Bank may thereupon pay to the Participant, as soon as practicable following such determination, such amount as it deems necessary to meet
the emergency. The Emergency Benefit payment may not be in excess of the Deferral Benefit to which the Participant would have been entitled pursuant to ¶6.1 a. if the Participant's service
with the Board had terminated on the date of such determination of financial emergency by the Committee. For the purposes of this Plan, a financial emergency is an unexpected need for funds arising
from an uninsured or underinsured illness or casualty loss, sudden serious financial reversal, transfer of place of 

3

 

employment
to a foreign jurisdiction outside of North America, or other like unforeseeable occurrence deemed by the Committee in its sole discretion to constitute a financial emergency. 

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

        6.7.    Determination of Deferral Benefits.    A Participant's Deferral Benefit shall be determined as of the
Determination Date coincident with or immediately following the occurrence of an event which entitles the Participant (or a Beneficiary) to payment of a benefit under this Plan. 

        6.8.    Commencement of Payments.    Payment of a Deferral Benefit shall be made or commence to be paid within a
reasonable period of time following the committee's receipt of notice of such event. 

        6.9.    Forfeiture of Benefits.    Notwithstanding anything contained herein to the contrary, a Participant shall
forfeit his or her right to receive any benefit from the Bank under this Plan if he or she shall engage in conduct intended to defraud the Bank or shall within one (1) year of termination of
service obtain service with a banking institution which directly competes with the Bank in its geographical locale, being Montgomery, Bucks and Philadelphia counties. 

 
 

ARTICLE VII    
    
    BENEFICIARY DESIGNATION    
    

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

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

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

	a.
	to
the surviving Spouse;

	b.
	to
the Participant's children, per stirpes

	c.
	the
Participant's estate. 

        7.4.    Effect of Payment.    The payment of a Participant's vested benefit to the deemed Beneficiary shall completely
discharge the Bank's obligation to the Participant or the Participant's Beneficiary under this Plan. 

        7.5.    Effect of Death After Termination of Service.    Upon the death of a Participant after termination of service
with the Board, the Beneficiary shall be paid any unpaid balance of the Participant's Deferral Benefits at such time or times and in such amount or amounts as if the Participant had not died. 

4

 

 
 

ARTICLE VIII    
    
    AMENDMENT AND TERMINATION OF PLAN    
    

        8.1.    Amendment.    The Board of Trustees may at any time, and from time to time, amend the Plan, in whole or in
part, provided, however, no amendment shall operate to eliminate or reduce any rights of any Participant or Beneficiary. 

        8.2.    Termination.    

        a.     Board's
Right to Terminate. The Board of Trustees may, at any time, in its sole discretion, terminate the Plan. 

        b.     Change
in Control of Bank. In the event the Bank converts from a mutual to a stock corporation, this Plan shall be deemed terminated upon the date of such stock
conversion. 

        c.     Effect
of Termination. Upon any termination of the Plan under this ¶8.2, the Bank will pay each Participant the total amount of his or her Accumulation
Account balance as determined under Article VI. 

        8.3.    ERISA; IRC.    It is intended that this Plan be neither an "employee welfare benefit plan" nor an "employee
pension benefit plan" for the purposes of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). It is further intended that this Plan will not cause the interest of a Participant
in the Plan to be includable in his or her (or his or her beneficiary's) gross income prior to his or her actual receipt of Deferral Benefits for purposes of the Internal Revenue Code of 1986, as
amended ("IRC"). The Board shall also terminate the Plan if it determines, based on an opinion of legal counsel which is satisfactory to the Board, that either: 

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

        (2)    ERISA
or the IRC requires the Plan to be amended in a way that creates a significant risk that the Plan will be held to be subject to ERISA or will cause current
taxation to Participants under the IRC, and failure to so amend the Plan could subject the Bank to material penalties. Upon any such termination, the Board shall: 

        a.    if
it is deemed reasonable, in the sole discretion of the Board, transfer Participant rights and obligations under the Plan to a new plan to be established by the Board
which is not deemed to be subject to ERISA or to cause current taxation to Participants under the IRC, but which is similar in other respects to the Plan, or 

        b.    if
it is not deemed reasonable, in the sole discretion of the Board, to establish such a new plan, then Deferral Benefits shall be distributed as provided in
¶8.2.c. 

 
 

ARTICLE IX    
    
    MISCELLANEOUS    
    

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

5

 

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

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

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

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

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

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

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

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

        9.10.    Form of communication.    Any election, claim, notice or other communication required or permitted to be made
by a Participant under the Plan shall be made in writing and on such form as shall be prescribed. Such communication shall be effective when received and accepted by the Committee. Such communication
shall be addressed to: Employee Benefit Committee, ABINGTON SAVINGS BANK, 180 Old York Road, Jenkintown, PA 19046 or such other address as the Committee may specify in a written communication to the
Participants. 

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

        9.12.    Claim Procedure.    Any claim for unpaid benefits deemed by a claimant to be owing must be made in writing to
the Committee by the claimant or the claimant's authorized representative within 

6

 

60 days
from the date such payments are not made. The Committee shall inform the claimant of the date on which the claim is received and accepted for review. The claim shall be reviewed by the
Committee. The Committee shall, within 90 days of the receipt of the claim, notify the claimant that the claim has been approved, denied or an additional 90 days is required for review.
(Failure of the Committee to take action within such 90 days shall be deemed a denial.) If the claim is denied in whole or in part, the Committee shall set forth the specific reasons for the
denial, including the provisions of this Plan upon which the denial is based. The notice shall also describe any additional information or material necessary to perfect the claim including the reasons
therefor and state that a review of the denial may be obtained if desired. 

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

        ADOPTED
pursuant to resolution of the Board of Trustees of ABINGTON SAVINGS BANK wherein an authorized officer of ABINGTON SAVINGS BANK shall execute in the name of and on behalf of
ABINGTON SAVINGS BANK this Plan as of the 27th day of December, 1995. 

	

ATTEST:	
 	

ABINGTON SAVINGS BANK
	

/s/  EDWARD W. GORMLEY      
	
 	

By:	

/s/  ROBERT W. WHITE      

7

QuickLinks

ABINGTON SAVINGS BANK BOARD OF TRUSTEES DEFERRED COMPENSATION PLAN

ARTICLE I PURPOSE

ARTICLE II DEFINITIONS

ARTICLE III ADMINISTRATION

ARTICLE IV PARTICIPATION

ARTICLE V ACCUMULATION ACCOUNT

ARTICLE VI BENEFITS

ARTICLE VII BENEFICIARY DESIGNATION

ARTICLE VIII AMENDMENT AND TERMINATION OF PLAN

ARTICLE IX MISCELLANEOUS

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