Document:

ex10-2.htm

    EXHIBIT
      10.2

    

    Approved
      By Board of Directors

    June
      27, 2007

    

    NATIONAL
      PENN BANCSHARES, INC.

    EXECUTIVE
      INCENTIVE PLAN

    

    AMENDMENT
      AND RESTATEMENT - 2007

    

    

    The
      National Penn Bancshares, Inc. Executive Incentive Plan is hereby amended and
      restated in its entirety as follows:

    

    Since
      formation, National Penn Bancshares, Inc. ("NPB"), as a holding company for
      National Penn Bank (the "Bank"), has maintained in effect the executive
      incentive plan originally adopted by the Bank on July 26, 1978. NPB now desires
      to amend and restate the terms of the plan in a written document as set forth
      herein effective January 1, 2007.

    

    The
      National Penn Bancshares, Inc. Executive Incentive Plan (the "Plan") is a
      variable award compensation arrangement for selected members of executive
      management. The purpose of the Plan is to motivate executives to meet and exceed
      established financial goals and to promote a superior level of performance
      relative to competitive banking institutions. Through payment of incentive
      compensation beyond a salary, the Plan provides reward for meeting and exceeding
      the established financial goals as well as recognition of individual
      achievements for certain Participants.

    

    1.           Definitions.
      The following terms have the meanings specified below, unless the context in
      which they are used otherwise requires:

    

    (a)           "Affiliate"
      means any corporation which is included within a "controlled group of
      corporations" including NPB, as determined under Section 1563 of the Internal
      Revenue Code of 1986, as amended ("Code").

    

    (b)           "Award"
      means the "Cash Award" and the "Matching Deferral" a Participant may earn in
      a
      Plan Year.

    

    (c)           "Cash
      Award" means the amount payable to a Participant in cash within 75 days of
      the
      close of the Plan Year in which it is earned.  It consists of
the NPB performance award determined under Paragraph 3 and
      Schedule B and the individual performance award determined under Paragraph
      4 and
      Schedule B.

    

    (d)           “Cause”
      means any of the following:

    

    (i)  A
      Participant’s
      conviction of, or plea of guilty or nolo contendere to, a felony or a crime
      of
      falsehood or involving moral turpitude; or

    

    (ii)  The
      willful failure by
      a Participant to substantially perform his or her duties to NPB or any Affiliate
      which is his or her Employer at any particular time, other than a failure
      resulting from the Participant’s incapacity as a result of disability, which
      willful failure results in demonstrable material injury and damage to NPB or
      the
      Affiliate Employer.  Notwithstanding the foregoing, a Participant’s
      employment shall not be deemed to have been terminated for Cause if such
      termination took place as a result of:

    

    (1)
      Questionable judgment on the part
      of the Participant;

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (2)
      Any act or omission believed by the
      Participant in good faith to have been in or not opposed to the best interests
      of NPB or Affiliate which is his or her Employer at the time;
      or

     

    (3)
      Any act or omission in respect of
      which a determination could properly be made that the Participant 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 Affiliate which is the Participant’s Employer at the time of such act or
      omission, in each case as in effect at the time of such act or
      omission.

    

    
      	
               

            	
              (e)

            	
              "CEO"
                means the Chief Executive Officer of
                NPB.

            

    

    

    
      	
               

            	
              (f)

            	
              "Change
                in Control or Ownership" means any of the
                following:

            

    

    

    (i)
      a
      change in ownership of NPB, which is deemed to occur when an acquisition by
      any one person, or more than one person acting as a group (as
      defined in 26 CFR 1.409A-3(i)(5)(v)(B)) acquires ownership of
stock of NPB that taken together with  stock
      held by such person or group constitutes more than 50% of
      the  total voting power
      or  total fair market value of NPB's stock then
      outstanding;

     

    (ii)
      a
      change in the effective control of NPB, which is deemed to occur when (A) any
      one person, or more than one person acting as a group (as determined
      under 26 CFR 1.409A-3(i)(5)(v)(B)) acquires (or has acquired during the
      twelve-month period ending on the most recent acquisition by such person or
      group) ownership of the stock of NPB possessing
30%  or more of the total voting power of such stock
      or (B) a majority of NPB's Board of Directors is replaced during any
      twelve-month period by directors whose appointment or election is not endorsed
      by a majority of the Board of Directors prior to the date of election;
      or

    

    (iii)
      a
      change in the ownership of a substantial portion of NPB's assets, which is
      deemed to occur on the date that any one person or more than one person acting
      as a group (as determined under 26 CFR 1.409A-3(i)(5)(v)(B))
      acquires (or has acquired during the twelve-month period ending on the date
      of
      the most recent acquisition by such person or group) assets from NPB that have
      a
      total gross fair market value equal to or more than 40% of the total gross
      fair
      market value of all of the assets of NPB immediately prior to such acquisition
      or acquisitions.

    

    The
      existence of any of the foregoing events shall be determined based on objective
      standards and in complete accordance with the requirements of Section 409A
      of
      the Code and 26 CFR 1.409A-3(i)(5) so that any accelerated
      distribution resulting from a Change in Control or Ownership does not result
      in
      a violation of Section 409A of the Code.

    

    (g)           "Committee"
      means the Compensation Committee of the Board of Directors of NPB.

    

    (h)           "Employer"
      means NPB or the Affiliate which employs the Participant.

    

    (i)           "Individual
      Award Fund" or "Fund" means the pool of funds generated, based on the formula
      established by the Committee that may, but is not required to be, distributed
      to
      Plan Participants as individual performance awards.

    

    (j)           
      "Matching Deferral" means the amount determined and approved by the Committee,
      expressed as a percentage of an annual Cash Award received by a Participant
      under this Plan.

    

    (k)           "Participant"
      means an officer or employee of NPB or an Affiliate who is
      designated by the CEO and approved by the Committee for participation in the
      Plan for the relevant Plan Year, or a person who was such at the time of his
      (i) retirement or other voluntary termination of
      employment, in either case after attaining age 60, (ii) death,
(iii) disability, or (iv) involuntary termination of
      employment not for “Cause,” and who retains, or whose beneficiaries
      obtain, benefits under the Plan in accordance with its terms.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    
      	
               

            	
              (l)

            	
              "Plan
                Year" means the calendar year.

            

    

    

    (m)           "Tax
      Deferral" means that portion of the Cash Award payable to a Participant under
      the Plan which the Participant elects, pursuant to Schedule C attached hereto
      and made a part hereof, to defer payment in accordance with the
      Plan.

    

    

    
      	
               

            	
              2.

            	
              Plan
                Participation.

            

    

    

    (a)           To
      be eligible for an Award under this Plan for a Plan Year, a Participant must
      be
      in the active full-time service of NPB or an Affiliate at the close of the
      Plan
      Year and continue to be employed as of the Cash Award payment date for the
      Plan
      Year, unless employment has terminated earlier due to (i) retirement or
      other voluntary termination of employment, in either case after attaining age
      60, (ii) death, (iii) disability, or (iv) involuntary termination of employment
      not for “Cause.”

    

    (b)           Prior
      to January 31 of each Plan Year, the CEO shall recommend to the Committee,
      in
      writing, the persons whom the CEO recommends be
      Participants for such Plan Year. The Committee shall meet as soon as
      practicable thereafter and act upon the recommendations of the CEO. Those
      Participants approved by the Committee shall be entitled to participate in
      the
      Plan for such Plan Year.

    

    (c)           Each
      year, the Committee shall classify the Participants into varying participation
      levels, as specified on Schedule A attached to this Plan, and shall specify
      defined Cash Award formulae for each category. Participants and their
      participation level will be listed on Schedule A attached to this Plan. This
      schedule will be revised each year, as appropriate.

    

    (d)           At
      the Committee’s discretion, the Committee may act upon the recommendation of the
      CEO (or concerning CEO participation, on their own behalf), to remove a
      Participant from the Plan during a Plan Year.

    

    3.           Company
      Performance Goals.

    

    (a)           Performance
      goals and appropriate financial thresholds shall be established each Plan Year
      by the Committee prior to February 15th of that Plan Year. The
      established goals shall relate to the financial performance of NPB or an
      Affiliate or unit thereof.

    

    (b)           The
      performance goals for a Plan Year will be shown on Schedule B attached to this
      Plan. This schedule shall be revised each year, as appropriate.  There
      may be multiple goals and each goal may be weighted differently in the award
      calculation.

    

    (c)           Each
      Participant will be in a performance goal level which has a threshold, target,
      and optimum performance award amount with related company performance
      measures.  Company performance falling between threshold and target
      and target and optimum will be interpolated. Company performance above optimum
      will create higher performance award amounts which are increased at a rate
      which
      is one-half the rate of increased award between target and
      optimum.  Additional performance points between the threshold and
      optimum may also be established for varying business conditions.

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (d)           An
      Award to a Participant is conditioned on the satisfactory performance of such
      Participant, as determined by the Committee in its sole discretion.

    

    4.           Individual
      Performance Awards.

    

    The
      Fund
      for a Plan Year for individual performance awards shall be determined
      annually and be reflected in the completed Schedule B for that Plan
      Year. Individual performance goal payments are in addition to NPB performance
      portion of the Cash Award.   The Committee, in its discretion,
      may distribute all, a portion or none of the Fund for a particular Plan
      Year.

    

    5.           Distribution
      of Awards.

    

    (a)           Cash
      Awards to Participants not deferred pursuant to Subparagraph (b) below shall
      be
      payable in cash as soon as practicable after the close of the Plan Year, but
      in
      any event not later than March 15th following
      the
      close of the Plan Year.  Appropriate tax withholdings will be made
      through the payroll system.

    

    (b)           Participants
      may elect to have the payment of all or a portion of their Cash Awards deferred,
      i.e., the Tax Deferral amount. Such election shall be made before the beginning
      of the relevant Plan Year and shall be in the form of Schedule C attached to
      this Plan. The Committee shall cause an account to be established on the
      Employer's books for each Participant who elects a deferral (the "Individual
      Tax
      Deferral Account"). The Account shall be credited, as of the last day of each
      calendar quarter, with interest calculated at the rate paid on the National
      Penn
      Investors Trust Company Money Market account for such quarter. For the quarter
      of deferral, the credit shall reflect deferral from January 1st. For the
      quarter
      of payment, no credit shall be made.

    

    (c)           (i)
      The Committee shall cause an account to be established on the Employer's books
      for each Participant (the "Matching Deferral Account"), with subaccounts for
      each Plan Year, and shall credit annually the Matching Deferral Account with
      an
      amount equal to the Matching Deferral of such Participant for a Plan Year.
      The
      Matching Deferral Account shall be credited, as of the last day of each calendar
      quarter, with interest calculated at the rate paid on the National Penn
      Investors Trust Company Money Market account for such quarter.  For
      the quarter of deferral, the credit shall reflect deferral from January 1st. For the
      quarter
      of payment, no credit shall be made.

    

    (ii)
      A Participant’s Matching Deferral subaccount established for a
      particular Plan Year shall vest  on the last day of the fifth
      Plan Year following the Plan Year for which  it was credited
(A) if such Participant is still employed by NPB or an
      Affiliate on the last day of such fifth Plan Year following crediting or
      (B) if on or prior to the last day of such fifth Plan Year following crediting,
      such Participant (1)has retired or otherwise voluntarily
      terminated employment, in either case at or after
      attaining  age 60 or later, (2) has died, or
(3) has been involuntarily terminated as
      an employee by NPB or an
      Affiliate not for “Cause.” In addition, the Employer shall
      credit such Participant's vested Matching Deferral
subaccount for that Plan year with an additional amount equal
      to the amount of that Matching Deferral plus
      interest.  A Participant shall forfeit any Matching Deferral
      subaccount that does not vest on the last day of the fifth Plan Year following
      the Plan Year for which it was credited.

    

    (iii)
      For
      purposes of this subparagraph 5(c), a Participant shall be deemed to be still
      employed by NPB or an Affiliate as of the last day of any Plan Year on which
      a
      balance exists in such Participant's Matching Deferral Account if such
      Participant is no longer then performing services on behalf of NPB or such
      Affiliate as a result of such Participant's disability.  For purposes
      this provision, a Participant shall be deemed to have terminated service due
      to
      disability if the Participant qualifies for disability benefits under his
Employer's long term disability benefit plan.

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    6.           Payment
      of Mandatory and Tax Deferral
      Amounts.

    

    (a)           After
      a Participant’s Matching Deferral subaccount has become vested and has been
      credited with the additional amount required by subparagraph 5(c)(ii), the
      total
      amount vested as of the close of that fifth Plan Year shall be paid out in
      cash
      to the Participant as soon as practicable after the close of the Plan Year,
      but
      in any event not later than February 15th following
      the
      close of the Plan Year.

    

    (b)           In
      the event of a Participant’s death, any Cash Award not yet paid, plus all
      deferred amounts, including the additional amount required by subparagraph
      5(c)(ii) for all prior Plan Years, shall be paid, within thirty (30) days of
      the
      last day of the calendar quarter during which the Participant’s death occurred,
      to the Participant’s designated beneficiary under the Employer’s group life
      insurance plan or, in the absence of a valid designation, to the Participant’s
      estate.

    

    (c)           The
      amount credited to a Participant's Individual Tax Deferral Account shall be
      paid
      to such Participant in one lump sum or in annual installments. The actual manner
      of distribution will be in accordance with the Participant's election made
      in
      conjunction with the deferral election, the form of which is attached hereto
      as
      Schedule C. If a Participant elects installment payments, the amount of each
      installment shall be determined by dividing the Account balance as of the
      preceding December
      31st by the
      number of payments remaining to be made, including the current
      payment.

    

    7.           Funding.

    

    (a)           Deferred
      obligations under the Plan shall be paid from the general assets of NPB or
      an
      Affiliate.

    

    (b)           NPB,
      or an Affiliate, in its sole discretion, may earmark assets or other means
      to
      meet the deferred obligations under the Plan. Any assets which may be earmarked
      to meet NPB's or an Affiliate's deferred obligations under the Plan shall
      continue for all purposes to be part of the general funds of NPB or an Affiliate
      and no person other than NPB or the Affiliate shall by virtue of the provisions
      of the Plan have any interest in such assets. To the extent a Participant or
      his
      beneficiary acquires a right to receive deferred payments from NPB or an
      Affiliate under the Plan, such right shall be no greater than the right of
      any
      unsecured general creditor of NPB or an Affiliate.

    

    (c)           Nothing
      contained in the Plan and no action taken pursuant to the provisions of the
      Plan
      shall create or be construed to create a trust of any kind, or a fiduciary
      relationship between NPB or an Affiliate and a Participant or any other
      person.

    

    8.           Plan
      Administration.

    

    (a)           The
      Committee shall, with respect to the Plan, have full power and authority to
      construe, interpret and manage, control and administer the Plan, and to pass
      and
      decide upon cases in conformity with the objectives of the Plan under such
      rules
      as the Board of Directors of NPB may establish.

    

    (b)           Any
      decision made or action taken by the Board of Directors of NPB or the Committee
      arising out of, or in connection with the administration, interpretation, and
      effect of the Plan shall be at their absolute discretion and shall be conclusive
      and binding on all parties.

    

    (c)           The
      members of the Committee and the members of the Board of Directors of NPB shall
      not be liable for any act or action, whether of omission or commission, made
      in
      connection with the interpretation and administration of the Plan and which
      results in a loss, damage, expense or depreciation, except when due to their
      own
      gross negligence or willful misconduct.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    9.           Amendment
      and Termination.

    

    NPB
      reserves the right to amend the Plan from time to time and to terminate the
      Plan
      at any time. All amendments, including any amendment to terminate the Plan,
      shall be adopted by the Board of Directors of NPB.

    

    10.           Change
      in Control or Ownership.

    

    (a)           If
      a Change in Control or Ownership shall occur before the last day of the Plan
      Year, any Awards issued with respect to that Plan Year shall be prorated by
      multiplication by a fraction, the numerator of which is the number of days
      that
      have elapsed from and including the first day of the Plan Year through and
      including the day immediately preceding the date on which such Change in Control
      or Ownership occurred and the denominator of which is 365 or 366, depending
      on
      the number of days in the entire Plan Year.  Each Participant’s
      Matching Deferral for such Plan Year shall be included in the Participant’s
      Matching Deferral Account and shall be credited with the additional amount
      provided for under subparagraph 10(b).  The Cash Award and Matching
      Deferral for such partial Plan Year, including the additional amount credited
      under subparagraph 10(b), shall be paid within the time set under subparagraph
      10(c).

    

    (b)           If
      a Change in Control or Ownership shall occur, each Participant's Matching
      Deferral Account shall be credited, as of the day immediately preceding the
      date
      on which such Change in Control or Ownership occurred, with additional amounts
      as follows: An amount equal to each Plan Year Balance (being the amount of
      the
      Matching Deferral as increased by interest through the close of the quarter
      preceding the Change in Control or Ownership) shall be credited by the Employer
      to such Participant's Matching Deferral Account (such additional amounts are
      referred to herein as "Change in Control Matching Contributions").

    

    (c)
      If a
      Change in Control or Ownership shall occur, the Employer shall pay each
      Participant a cash amount equal to the total amounts credited, as of the date
      such Change in Control or Ownership occurred, to (i) such Participant's Matching
      Deferral Account (including all Change in Control Matching Contributions made
      pursuant to subparagraph (b) hereof) and (ii) such Participant's Individual
      Tax
      Deferral Account, if any, within thirty (30) days of the Change in
      Control or Ownership.

    

    11.           Transition
      Rule.

    

    The
      Plan as amended and restated herein shall apply to all Awards made under the
      Plan and amounts deferred under the Plan, including Awards and deferrals made
      prior to January 1, 2007.

    

    12.           Compliance
      Rules.

    

    (a)           Notwithstanding
      any provision of the Plan to the contrary, if any portion of any
Cash Award held in a Tax Deferral Account
      becomes payable  on account of the Participant's
      separation from service and the Committee determines that such Participant
      is a
      "specified employee", payment of any amount due during
      the first six calendar months following the Participant’s separation from
      service shall be deferred until the first day of the calendar month
      that is at least six full months after the Participant's
      separation from service.  The term “specified employee” means
      a Participant who, as of the date of separation from service, is a “key
      employee” of NPB or an Affiliate.  A Participant is a “key employee”
if the Participant meets the requirements of section 416(i)(1)(A)(i), (ii)
      or
      (iii) of the Code (applied in accordance with the regulations thereunder and
      disregarding section 416(i)(5)) at any time during the twelve-month period
      ending on a December 31st.  If
      a Participant is a “key employee” on that date, the Participant is treated as
      such and therefore as a “specified employee” for the entire twelve-month period
      beginning on the April 1st
      following the December 31st
      as of which key employee status is determined.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    (b)           Notwithstanding
      any provision of the Plan as heretofore effective, no Participant shall be
      permitted to make an election (i) to defer any Cash Award other than the
      Participant's initial election with respect to a Cash Award or (ii) to defer
      any
      Matching Deferral beyond the automatic deferral period.

     

    (c)           An
      election to defer a Cash Award shall be irrevocable.

    

    (d)           An
      election with respect to the mode or time of payment of a deferred Cash Award
      shall be irrevocable.

    

    13.           Miscellaneous
      Provisions.

    

    (a)           The
      Plan does not constitute a contract of employment, and participation in the
      Plan
      shall not give any Participant the right to be retained in the service of NPB
      or
      an Affiliate or any right or claim to a benefit under the Plan unless such
      right
      or claim has specifically accrued under the terms of this Plan.

     

    (b)           NPB
      or an Affiliate reserves the right to withhold from the gross amount any amounts
      payable hereunder, amounts it determines are required to be withheld to satisfy
      applicable federal, state or local income or payroll tax
      requirements

    

    (c)           The
      captions of the several paragraphs and subparagraphs of this Plan are inserted
      for convenience of reference only and shall not be considered in the
      construction hereof.

    

    (d)           Whenever
      any word is used herein in the singular form, it shall be construed as though
      it
      were used in the plural form, as the context requires, and vice
      versa.

    

    (e)           A
      masculine, feminine or neuter pronoun, whenever used herein, shall be construed
      to include all genders as the context requires.

    

    (f)           This
      Plan may be executed in any number of counterparts, each of which shall be
      deemed one and the same instrument which may be sufficiently evidenced by any
      one counterpart.

    

    (g)       Except
      to the extent pre-empted by federal law, this Plan shall be construed,
      administered, and enforced in accordance with the domestic internal law of
      the
      Commonwealth of Pennsylvania.

     

    (h)           The
      Board of Directors of NPB or its Compensation Committee may
      adjust the financial targets and/or awards generated under this
Plan for extraordinary gains and losses or
      otherwise to best reflect the overall interests of the
      shareholders.

    

    (i)           The
      Board of Directors of NPB or its Compensation Committee may amend or terminate
      this Plan at any time.  No termination or amendment may adversely
      affect the accrued rights or benefits of any Participant under the
      Plan.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    SCHEDULE
      A

    

    

    Participants
      for the __________ Plan Year consist of Categories
      ___________________.

    

    It
      is
      anticipated that the following named persons will meet the eligibility
      requirements for participation as of December 31, _________.

    

    Named
      participants are classified accordingly:

    

    CATEGORY
      A (___ persons) (name and grade level)

    

    

    CATEGORY
      B (____ persons) (name and
      grade level)

    

    

    CATEGORY
      C (____ persons) (name and grade level)

    

    [INSERT
      NAMES AND GRADE LEVELS]

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    SCHEDULE
      B

    

    NATIONAL
      PENN BANCSHARES, INC.

    

    EXECUTIVE
      INCENTIVE PLAN

    

    _______
      PERFORMANCE GOALS AND AWARD SCHEDULE

    

    [SUBJECT
      TO CHANGE]

    

    Awards
      pursuant to the Plan will not be made unless the internal and external
      performance goals set forth below are met.

    

     

      
        	
                Company
                  Portion

              	 
	
                (Yr.)
                  Earnings Per Share

              	 

      

       

      
        
          	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
                  Threshold

                	 	 	
                  Market

                  Target

                	 	 	
                  NPB
                    Target

                	 	 	
                  Optimum

                	 
	 	 	$	
                	 	 	$	
                	 	 	$	
                	 	 	$	
                	 
	Category 	 	 	%
                  of Base Salary 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  A

                	 	 	20	%	 	 	40	%	 	 	50	%	 	 	60	%
	
                  B

                	 	 	15	%	 	 	27.5	%	 	 	33.8	%	 	 	40	%
	
                  C

                	 	 	12	%	 	 	20	%	 	 	24	%	 	 	28	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Individual
                    Portion 

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	All 	 	 	0-20	% 	 	 	
                  0%-20

                	% 	 	 	
                  0%-20

                	% 	 	 	
                  0%-20

                	
                  %

                
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

        

      

    

    

    Parameters:

     

    
      	
              q  

            	
              No
                Awards will be paid for performance under
                threshold.

            

    

     

    
      	
              q  

            	
              An
                Individual Award Fund equal to 20% of the total Performance Goal
                portion
                of the Cash Award is available for distribution to individuals for
                individual performance.  These individual additional awards may
                not exceed 20% of the participant’s base pay (except for Category A which
                is capped at 20% of NPB performance award
                amount).

            

    

     

    
      	
              q  

            	
              Cash
                Awards for performance between threshold and target and target and
                optimum
                will be interpolated.

            

    

     

    
      	
              q  

            	
              Performance
                above optimum will result in awards interpolated at one half the
                rate of
                increase between target and
                optimum.

            

    

     

    
      	
              q  

            	
              A
                participant must be continued to be employed through award payment
                date to
                receive an award.

            

    

     

    
      	
              q  

            	
              The
                Committee in its sole discretion may determine that an individual
                participant’s performance is not satisfactory for a Plan Year and that
                such participant will not receive any award under this Plan for such
                Plan
                Year.

            

    

    

    Individual
      Matching Account – For _____ (yr.) the Individual
      Matching Deferral Account will be established at  _____% of each
      individual’s Cash Award (inclusive of any elective deferral from that award) as
      determined above.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    SCHEDULE
      C

    

    NATIONAL
      PENN BANCSHARES, INC.

    EXECUTIVE
      INCENTIVE PLAN

    DEFERRAL
      ELECTION LETTER

    

    

    TO
      THE
      COMMITTEE:

    

    In
      accordance with the National Penn Bancshares, Inc. Executive Incentive Plan,
      as
      amended and restated in 2007, I hereby request to defer receipt
      of that portion of any Cash Award  earned by me (to the extent
      provided in Paragraph 2 below) for services rendered as an eligible Participant
      in the Plan during the calendar year specified below. This election shall be
      governed by all of the provisions of the Plan.

    

    
      	
              1.  

            	
              This
                request shall be effective beginning with calendar year
                _________.

            

    

    

    
      	
              2.  

            	
              This
                request shall apply to ________________________ of my Cash
                Award.    (Expressed as "all" or a designated dollar
                or percentage limitation.)

            

    

    

    
      	
              3.  

            	
              My
                deferred Cash Award and the interest thereon shall become
                payable as provided in item #4 below following the date I
                retire or otherwise cease have a separation from service with NPB
                or an Affiliate of NPB unless subject to a six-month delay following
                my
                separation from service as provided for in subparagraph 12(a) of
                the
                Plan.

            

    

    

    
      	
              4.  

            	
              I
                irrevocably elect that, when payable, my deferred Cash Award and
                the
                interest thereon shall be paid to me as indicated
                below:

            

    

    

     (       )                      In
      one lump sum during the month of January following my retirement or
      separation from service.

    

    (        )                      In
      a series of five annual installments payable during each of the five
      consecutive months of January following my retirement or separation from
      service.

    

    (        )                      In
      a series of ten annual installments payable during each of the ten
      consecutive months of January following my retirement or separation from
      service.

    

    I
      agree
      that such terms and conditions shall be binding upon my beneficiaries,
      distributees, and personal representatives.

    

    Unless
      noted below, my beneficiaries shall be the same as designated for my group
      life
      insurance.

    

    
      	
              ____________________________

            	
              ____________________________________________

            
	
              Date

            	
              Signature
                of Participant

            
	 	 
	 	 
	 	
              Approved
                By:

            
	 	 
	 	 
	
              ____________________________

            	
              ____________________________________________

            
	
              Date

            	
              Signature
                of the Chairman of the CommitteeExhibit 4.11

                         NON-QUALIFIED STOCK OPTION PLAN
                                       OF
                        OXFORD INVESTMENTS HOLDINGS INC.
                               (December 1, 2005)

This Non-Qualified Stock Option Plan (the "Plan") is adopted in consideration of
services rendered and to be rendered by directors, key personnel and consultants
to Oxford Investments Holdings Inc., its subsidiaries and affiliates.

DEFINITIONS

The terms used in this Plan shall, unless otherwise indicated or required by the
particular context, have the following meanings:

Board: The Board of Directors of Oxford Investments Holdings Inc.

Common Stock: The no par value Common Stock of Oxford Investments Holdings Inc.

Company  or  Corporation:   Oxford  Investments  Holdings  Inc.,  a  corporation
incorporated  under the laws of Ontario,  Canada, and any successors in interest
by merger,  operation of law, assignment or purchase of all or substantially all
of the property, assets or business of the Company.

Date of Grant:  The date on which an option  (see  below) is  granted  under the
Plan.

Fair Market Value: The Fair Market Value of the Option Shares.  Such Fair Market
Value as of any date shall be reasonably  determined by the Board  provided,  if
the stock is listed upon an  established  stock  exchange or exchanges such fair
market  value  shall be the  closing  selling  price of the stock on such  stock
exchange or  exchanges  on the day the option is  granted,  or if no sale of the
Corporation's  stock shall have been made on any stock  exchange on that day, on
the next preceding day on which there was a sale of such stock. During such time
as such stock is not listed upon an  established  stock exchange the fair market
value  per  share  shall  mean (1) if the  stock is not  actively  traded in the
over-the-counter  market,  an amount  arrived  at by the Board of  Directors  by
applying  any  reasonable  valuation  method;  and (2) if the stock is  actively
traded in the over-the-counter market the closing price on the day the option is
granted, as reported by the National Association of Securities Dealers, Inc., or
National  Quotation  Bureau,  Inc.  Subject to the foregoing,  the  Compensation
Committee in fixing the option price shall have full  authority  and  discretion
and be fully protected in doing so.

Key Person: A person designated by the Board upon whose judgment, initiative and
efforts the Company or a related company may rely including  without  limitation
any director, employee, or consultant of the Company.

Option:  The rights granted to a Key Person to purchase Common Stock pursuant to
the terms and conditions of an Option Agreement (see below).

                                       1
<PAGE>

Option  Agreement:  The  written  agreement  (and any  amendment  or  supplement
thereto)  between  the  Company  and a Key  Person  designating  the  terms  and
conditions of an Option.

Option Shares:  The shares of Common Stock underlying an Option granted to a Key
Person.

Optionee: A Key Person who has been granted an Option.

                           ARTICLE 1 PURPOSE AND SCOPE

(a) This  Non-Qualified  Stock Option Plan (the "Plan") was adopted by the Board
of  Directors  of  Oxford   Investments   Holdings   Inc.   (the   "Company"  or
"Corporation")  on  ______,  2005  and  approved  by  the  shareholders  of  the
Corporation  on  December___,  2005,  in order to advance the  interests  of the
Company and its  shareholders  by affording  Key Persons,  upon whose  judgment,
initiative and efforts the Company may rely for the successful  conduct of their
businesses,  an  opportunity  for  investment  in the Company and the  incentive
advantages inherent in stock ownership in the Company.

(b) This Plan authorizes the Board to grant Options to purchase shares of Common
Stock to Key Persons  selected by the Board while  considering  criteria such as
employment  position  or  other  relationship  with  the  Company,   duties  and
responsibilities,  ability,  productivity,  length of  service  or  association,
morale,  interest in the  Company,  recommendations  by  supervisors,  and other
matters.

                      ARTICLE 2 ADMINISTRATION OF THE PLAN

The Plan shall be administered by the  Compensation  Committee of the Board. The
Compensation Committee shall have the authority granted to it under this section
and under each other section of the Plan. In accordance  with and subject to the
provisions of the Plan, the  Compensation  Committee shall select the Optionees,
shall  determine  (i) the number of shares of Common Stock to be subject to each
option,  (ii) the time at which each Option is to be granted,  (iii)  whether an
Option shall be granted in exchange for the  cancellation  and  termination of a
previously  granted  option or  options  under the Plan or  otherwise,  (iv) the
purchase price for the Option Shares, (v) the option period, and (vi) the manner
in which the Option becomes exercisable. In addition, the Compensation Committee
shall fix such other terms of each Option as it may deem necessary or desirable.
The  Compensation  Committee  shall  determine  the form of Option  Agreement to
evidence each Option.

Effective for 2006 and thereafter,  the Compensation Committee has determined to
grant under the Plan to each  non-employee  director  options to purchase  5,000
shares  each year as of the date  which is one day prior to the date set for the
annual meeting of shareholders for such year and with an exercise price equal to
the closing price on the date of the grant.  The  non-employee  director  option
grants shall be  exercisable  at any time between the date of grant and up to 10
years from the date of the grant.

The  Compensation  Committee  from  time  to  time  may  adopt  such  rules  and
regulations  for carrying out the purposes of the Plan as it may deem proper and
in the best  interest  of the  Company.  The Board  may from  time to time,  and

                                       2
<PAGE>

subject to Article 14, make such changes in and  additions to the Plan as it may
deem proper and in the best interest of the Company provided,  however,  that no
such change or addition  shall impair any Option  previously  granted  under the
Plan.

Each  determination,  interpretation  or other action made or taken by the Board
shall be  final,  conclusive  and  binding  on all  persons,  including  without
limitation,  the  Company,  any  subsidiary  of the Company,  the  shareholders,
directors,  officers  and  employees  of the Company and any  subsidiary  of the
Company, and the Optionees and their respective successors in interest.

                           ARTICLE 3 THE COMMON STOCK

The Compensation  Committee is authorized to appropriate,  grant options,  issue
and sell for the  purposes  of the Plan,  a total  number,  not in excess of ten
percent (10%) of the Common Shares of the Company (currently 2,187,000 shares of
Common Stock),  either  treasury or authorized  but unissued,  or the number and
kind of shares of stock or other  securities  which in accordance with Article 8
shall be substituted for the 2,187,000 shares or into which such shares shall be
adjusted.  All or any unsold  shares  subject  to an Option  that for any reason
expires of otherwise  terminates  may again be made subject to Options under the
Plan.

                              ARTICLE 4 ELIGIBILITY

Options will be granted only to Key Persons.  Key Persons may hold more than one
Option  under the Plan and may hold Options  under the Plan and options  granted
pursuant to other plans or otherwise.  The aggregate number of Options available
for  issuance to any one person  shall not exceed 5% of the  outstanding  common
shares at the time of grant  (including  the  shares  that are  subject  to such
option grant).

                             ARTICLE 5 OPTION PRICE

The  Compensation  Committee  shall  determine the purchase price for the Option
Shares;  provided,  however, that the purchase price to be paid by Optionees for
Option  Shares  shall not be less than one  hundred  percent  (100%) of the Fair
Market Value of the Option Shares on the Date of Grant.

                   ARTICLE 6 DURATION AND EXERCISE OF OPTIONS

(a) The option  period  shall  commence on the Date of Grant and may be up to 10
years in length  subject  to the  limitations  in this  Article 6 and the Option
Agreement.

(b) During the lifetime of the Optionee, the Option shall be exercisable only by
the Optionee. Subject to the limitations in Paragraph (a) above, any Option held
by an Optionee at the time of his death may be  exercised  by his estate  within
twelve months of his death or such longer period as the  Compensation  Committee
may determine.

                                       3
<PAGE>

(c) The  Compensation  Committee  may  determine  whether  an  Option  shall  be
exercisable as provided in Paragraph (a) of this Article 6 or whether the Option
shall  be  exercisable  in  installments  only;  if the  Compensation  Committee
determines the latter,  it shall  determine the number of  installments  and the
percentage  of the  Option  exercisable  at  each  installment  date.  All  such
installments shall be cumulative.

(d) In the case of an  Optionee  who is an employee or a director of the Company
or a  subsidiary  of the  Company,  if,  for any  reason  (other  than  death or
termination  for cause by the  Company  or a  subsidiary  of the  Company),  the
Optionee  ceases to be  employed by either the  Company or a  subsidiary  of the
Company,  any option held by the Optionee at the time his employment  ceases may
be exercised  within 90 days after the date that his employment  ceased (subject
to the  limitations  at  Paragraph  (a) above),  but only to the extent that the
option  was  exercisable  according  to its  terms on the  date  the  Optionee's
employment  ceased.  After such 90 day  period,  any  unexercised  portion of an
Option shall expire unless extended by the Compensation Committee.

(e) In the case of an  Optionee  who is an employee or a director of the Company
or a subsidiary of the Company, if the Optionee's employment by the Company or a
subsidiary  of the  Company  ceases  due to the  Company's  termination  of such
Optionee's  employment for cause, any unexercised  portion of any Option held by
the Optionee  shall  immediately  expire.  For this purpose  "cause"  shall mean
conviction of a felony or continued  failure,  after notice,  by the Optionee to
perform fully and adequately the Optionee's duties.

(f) Each Option  shall be  exercised  in whole or in part by  delivering  to the
office of the  Treasurer of the Company  written  notice of the number of shares
with  respect to which the Option is to be  exercised  and by paying in full the
purchase price for the Option Shares purchased as set forth in Article 7.

                       ARTICLE 7 PAYMENT FOR OPTION SHARES

The Compensation  Committee may permit all or part of the purchase price for the
Option Shares to be paid by delivery to the Company for  cancellation  shares of
the  Company's  Common Stock  previously  owned by the Optionee for at least six
months and with a Fair Market  Value as of the date of the payment  equal to the
portion of the purchase  price for the Option  Shares that the Optionee does not
pay in cash. In the case of all other Option exercises, the purchase price shall
be paid in cash or certified  funds upon exercise of the Option.  In addition to
the foregoing,  the Compensation Committee may permit a Optionee to elect to pay
the Option  Price by  irrevocably  authorizing  a third  party to sell shares of
Common Stock (or a sufficient  portion of the shares)  acquired upon exercise of
the Stock  Option  and remit to the  Company a  sufficient  portion  of the sale
proceeds to pay the entire Option Price and any tax  withholding  resulting from
such exercise.

                  ARTICLE 8 CHANGE IN STOCK, ADJUSTMENTS, ETC.

In the event that each of the  outstanding  shares of Common  Stock  (other than
shares  held by  dissenting  stockholders  which are not  changed or  exchanged)
should be changed into, or exchanged  for, a different  number or kind of shares

                                       4
<PAGE>

of stock or other securities of the Company, or, if further changes or exchanges
of any stock or other  securities  into which the Common  Stock  shall have been
changed,  or for which it shall have been  exchanged,  shall be made (whether by
reason  of  merger,  consolidation,   reorganization,   recapitalization,  stock
dividends, reclassification, split-up, combination of shares or otherwise), then
there shall be substituted for each share of Common Stock that is subject to the
Plan, the number and kind of shares of stock or other securities into which each
outstanding  share  of  Common  Stock  (other  than  shares  held by  dissenting
shareholders  which are not  changed  or  exchanged)  shall be so changed or for
which  each  outstanding  share of  Common  Stock  (other  than  shares  held by
dissenting  shareholders) shall be so changed or for which each such share shall
be  exchanged.  Any  securities  so  substituted  shall be  subject  to  similar
successive adjustments. In the event of any such changes or exchanges, the Board
shall determine whether,  in order to prevent dilution or enlargement of rights,
an adjustment should be made in the number,  kind, or option price of the shares
or other securities then subject to an Option or Options granted pursuant to the
Plan and the Board shall make any such adjustment, and such adjustments shall be
made and shall be effective and binding for all purposes of the Plan.

                      ARTICLE 9 RELATIONSHIP TO EMPLOYMENT

Nothing  contained in the Plan, or in any Option  granted  pursuant to the Plan,
shall  confer upon any  Optionee  any right with  respect to  employment  by the
Company,  or interfere in any way with the right of the Company to terminate the
Optionee's employment or services at any time.

                     ARTICLE 10 NONTRANSFERABILITY OF OPTION

No Option granted under the Plan shall be transferable  by the Optionee,  either
voluntarily  or  involuntarily,  except  by will  or the  laws  of  descent  and
distribution, and any attempt to do so shall be null and void.

                       ARTICLE 11 RIGHTS AS A SHAREHOLDER

No person  shall  have any  rights as a  shareholder  with  respect to any share
covered by an Option until that person shall become the holder of record of such
share and,  except as  provided in Article 8, no  adjustments  shall be made for
dividends or other distributions or other rights as to which there is an earlier
record date.

                     ARTICLE 12 SECURITIES LAWS REQUIREMENTS

No Option  Shares  shall be issued  unless  and  until,  in the  opinion  of the
Company, any applicable registration requirements of the Securities Act of 1933,
as amended,  any applicable listing  requirements of any securities  exchange on
which stock of the same class is then listed,  and any other requirements of law
or of any regulatory bodies having jurisdiction over such issuance and delivery,
have been fully complied with. Each Option and each Option Share certificate may
be  imprinted  with  legends   reflecting  federal  and  state  securities  laws
restrictions  and  conditions,  and the Company may comply  therewith  and issue
"stop  transfer"  instructions to its transfer agent and registrar in good faith
without liability.

                                       5
<PAGE>

                        ARTICLE 13 DISPOSITION OF SHARES

Each Optionee, as a condition of exercise,  shall represent,  warrant and agree,
in a form of written certificate  approved by the Company, as follows:  (a) that
all  Options  Shares are being  acquired  solely for his own  account and not on
behalf of any other person or entity;  (b) that no Option Shares will be sold or
otherwise distributed in violation of the Securities Act of 1933, as amended, or
any other applicable federal or state securities laws; (c) that if he is subject
to reporting  requirements under Section 16(a) of the Securities Exchange Act of
1934,  as amended,  he will (i)  furnish the Company  with a copy of each Form 4
filed by him,  and (ii)  timely  file all  reports  required  under the  federal
securities  laws;  and (d) that he will report all sales of Option Shares to the
Company in writing on a form prescribed by the Company.

                              ARTICLE 14 AMENDMENT

The Board of Directors may amend or  discontinue  this Plan at any time provided
that no  unexercised  option granted under this Plan may be altered or canceled,
except  in  accordance  with its  terms,  without  the  written  consent  of the
participant to whom such option was granted;  and provided further that, without
the  approval of the  shareholders,  no  amendment  may:  (i) change  (except as
provided in Article 8) the aggregate  number of shares which may be issued under
the plan;  (ii)  decrease  the  purchase  price for the option  shares  under an
outstanding  option,  or (iii)  remove the  administration  of the Plan from the
Compensation Committee. From time to time, the Board of Directors may amend this
Plan to  clarify  the  meaning  of any of its  provisions.  Any such  clarifying
amendment  shall not confer any  additional  benefit on any optionees  under the
Plan nor shall it effect a  modification  of the Plan or options  previously  or
subsequently granted under the Plan.

                          ARTICLE 15: TERM OF THE PLAN

No option shall be granted  hereunder after the expiration of ten years from the
earlier of the date on which the Plan was adopted by the Board of  Directors  as
indicated  in Article 1 or the date it was approved by the  shareholders  of the
Corporation.

                          ARTICLE 16: TERM OF THE PLAN

To the extent applicable, it is intended that this Agreement and the Plan comply
with the provisions of Section 409A of the United States Internal  Revenue Code,
so that the income  inclusion  provisions of Section  409A(a)(1) do not apply to
Optionee.  This  Agreement  and the  Plan  shall  be  administered  in a  manner
consistent with this intent, and any provision that would cause the Agreement or
the Plan to fail to  satisfy  Section  409A of the Code  shall have no force and
effect until  amended to comply with  Section 409A of the Code (which  amendment
may be retroactive  to the extent  permitted by Section 409A of the Code and may
be made by the Company without the consent of the Optionee).

                                       6
<PAGE>

                          ARTICLE 17: OTHER PROVISIONS:

The following provisions are also in effect under the Plan:

(a) The use of a  masculine  gender in the Plan  shall also  include  within its
meaning the  feminine,  and the singular may include the plural,  and the plural
may include the singular, unless the context clearly indicates to the contrary.

(b) Any expenses of administering the Plan shall be borne by the Company.

(c)  This  Plan  shall  be  construed  to be in  addition  to any and all  other
compensation plans or programs.  The adoption of the Plan by the Board shall not
be construed as creating any  limitations on the power or authority of the Board
to adopt such other additional  incentive or other compensation  arrangements as
the Board may deem necessary or desirable.

(d) The validity, construction, interpretation, administration and effect of the
Plan and of its rules and  regulations,  and the rights of any and all personnel
having or claiming to have an interest  therein or thereunder  shall be governed
by and  determined  exclusively  and solely in  accordance  with the laws of the
Ontario, Canada.

                                       7
<PAGE>

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