Document:

FORM OF

GERARD P. CUDDY

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

          THIS AMENDED AND RESTATED AGREEMENT (the
“Agreement”), made this _____ day of _________, 2007, by and between BENEFICIAL MUTUAL BANCORP, INC., a federally chartered
corporation (the “Company”), BENEFICIAL MUTUAL SAVINGS BANK, a Pennsylvania chartered savings
bank (the “Bank”), and GERARD P. CUDDY
(the “Executive”).

          WHEREAS, Executive and the Bank entered
into an employment letter agreement dated October 18, 2006 (the “Letter
Agreement”); and

          WHEREAS, the parties have determined that
it is necessary and appropriate to amend and restate the Letter Agreement in
connection with the Company’s initial public offering; and

          NOW, THEREFORE, in consideration of the
mutual covenants herein contained, and upon the other terms and conditions
hereinafter provided, the parties hereby agree as follows:

          1. Employment. Executive shall be
employed as President and Chief Executive Officer of the Company and the Bank.
Executive shall perform all duties and shall have all powers which are commonly
incident to the offices of President and Chief Executive Officer or which,
consistent with those offices, are delegated to him by the Boards of Directors.
(All
subsequent references herein to the Board shall be to the Board of the Bank,
unless otherwise indicated.)

          2. Location and Facilities.
Executive will be furnished with the working facilities and staff customary for
executive officers with the title and duties set forth in Section 1 and as are
necessary for him to perform his duties. The location of such facilities and
staff shall be at the principal administrative offices of the Company and the
Bank, or at such other site or sites customary for such offices.

          3. Term.

          a.
The term of this Agreement shall be (i) the initial term, consisting of the
period commencing on the date of this Agreement (the “Effective Date”) and
ending on the third anniversary of the Effective Date, plus (ii) any and all
extensions of the initial term made pursuant to this Section 3.

          b.
Commencing on the first year anniversary date of this Agreement, and continuing
on each anniversary thereafter, the disinterested members of the Boards of
Directors of the Bank and the Company may extend the Agreement an additional
year such that the remaining term of the Agreement shall be thirty-six (36)
months, unless Executive elects not to extend the term of this Agreement by
giving written notice in accordance with Section 16 of this Agreement. The
Board will review the Agreement and Executive’s performance annually prior to
each anniversary date for purposes of determining whether to extend the
Agreement and the rationale and results thereof shall

be included in
the minutes of the Board’s meeting. The Board shall give notice to Executive as
soon as possible after such review as to whether the Agreement is to be
extended.

          4. Base Compensation.

          a.
The Company and the Bank agree to pay Executive a base salary at the rate of
$425,000 per year, payable in accordance with customary payroll practices.

          b.
The Board shall review annually the rate of Executive’s base salary based upon
factors they deem relevant. The first such review shall occur no later than
December 31, 2007.

          c.
In the absence of action by the Board, Executive shall continue to receive
salary at the annual rate specified on the Effective Date or, if another rate
has been established under the provisions of this Section 4, the rate last
properly established by action of the Board under the provisions of this
Section 4.

          5. Bonuses. Executive shall be
entitled to participate in discretionary bonuses or other incentive
compensation programs that the Company and the Bank may award from time to time
to senior management employees pursuant to bonus plans or otherwise; provided,
however, that Executive’s incentive compensation opportunity in each calendar
year through 2009 shall not be less than the following: $75,000 (2007), $100,000
(2008) and $125,000 (2009). The determination of the amount payable to
Executive as incentive compensation, if any, shall be determined at the Board’s
discretion or pursuant to the terms of any incentive compensation plan adopted
by the Board and such amount, if any, shall be payable not later December 31 of
each year or as specified in the applicable plan.

          6. Benefit Plans. Executive shall be
entitled to participate in such employee welfare benefit plans, pension, profit
sharing, retirement and stock-based compensation plans and other programs and
arrangements as may be approved from time to time by the Company and the Bank
for the benefit of their employees on such terms as the Board of the Company or
the Bank may specify.

          7. Vacation and Leave.

          a.
Executive shall be entitled to vacations and other leave in accordance with
policy for senior executives, or otherwise as approved by the Board, but, in
any event, not less than four (4) weeks of paid vacation leave annually.

          b.
In addition to paid vacations and other leave, Executive shall be entitled,
without loss of pay, to absent himself voluntarily from the performance of his
employment for such additional periods of time and for such valid and
legitimate reasons as the Board may, in its discretion, determine. Further, the
Board may grant to Executive a leave or leaves of absence, with or without pay,
at such time or times and upon such terms and conditions as the Board in its
discretion may determine.

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          8. Expenses and Reimbursements.
Executive shall be reimbursed for all reasonable out-of-pocket business
expenses that he shall incur in connection with his services under this
Agreement upon substantiation of such expenses in accordance with applicable
policies of the Company and the Bank. 

          9. Perquisites. In connection with
the performance of his duties under this Agreement, the Bank shall provide
Executive with the following perquisites: (i) use of an automobile and payment
of related expenses including paid parking, (ii) the cost of Executive’s
membership in the Union League and initiation fees and other costs related to
Executive’s membership in the Merion Cricket Club, (iii) to the extent approved
by the Board, dues for membership in other organizations that support
Executive’s activities on behalf of the Bank, (iv) a laptop computer, cellphone
and other wireless devices of Executive’s choosing. To the extent required by
applicable law, the Bank shall report as income to Executive the value of his
personal use of any perquisites.

          10. Termination and Termination Pay.
Executive’s employment under this Agreement may be terminated in the following
circumstances:

          a.
Death; Disability. Executive’s employment under this Agreement shall
terminate upon his death or Disability during the term of this Agreement, in
which event Executive or Executive’s estate shall be entitled to receive the
compensation due to Executive through the last day of the calendar month in
which his death or Disability occurred. For purposes of this Agreement,
“Disability” means a physical or mental infirmity that impairs Executive’s
ability to substantially perform his duties under this Agreement and that
results in Executive becoming eligible for long-term disability benefits under
any long-term disability plans of the Company and the Bank (or, if there are no
such plans in effect, that impairs Executive’s ability to substantially perform
his duties under this Agreement for a period of one hundred eighty (180)
consecutive days). The Board shall determine whether or not Executive is and
continues to be permanently disabled for purposes of this Agreement in good
faith, based upon competent medical advice and other factors that they
reasonably believe to be relevant. As a condition to any benefits, the Board
may require Executive to submit to such physical or mental evaluations and
tests as it deems reasonably appropriate.

          b.
Termination for Cause.

	
 

	
 

	
 

	
 

	
 

	
i.

	
The Board
  may, by written notice to Executive in the form and manner specified in this
  paragraph, immediately terminate his employment at any time, for “Cause.”
  Executive shall have no right to receive compensation or other benefits for
  any period after termination for Cause except for vested benefits.
  Termination for “Cause” shall mean termination because of, in the good faith
  determination of the Board, Executive’s:

	
 

	
 

	
 

	
 

	
 

	
 

	
(1) 

	
Personal
  dishonesty;

	
 

	
 

	
 

	
 

	
 

	
(2) 

	
Incompetence;

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(3)

	
Willful
  misconduct;

	
 

	
 

	
 

	
 

	
 

	
 

	
(4)

	
Breach of
  fiduciary duty involving personal profit;

	
 

	
 

	
 

	
 

	
 

	
 

	
(5)

	
Intentional
  failure to perform stated duties under this Agreement;

	
 

	
 

	
 

	
 

	
 

	
 

	
(6)

	
Willful
  violation of any law, rule or regulation (other than traffic violations or
  similar offenses) that reflects adversely on the reputation of the Company
  and the Bank, any felony conviction, any violation of law involving moral
  turpitude, or any violation of a final cease-and-desist order; or

	
 

	
 

	
 

	
 

	
 

	
 

	
(7)

	
Material
  breach by Executive of any provision of this Agreement.

	
 

	
 

	
 

	
 

	
 

	
ii.

	
Notwithstanding
  the foregoing, Executive shall not be deemed to have been terminated for
  Cause by the Company and the Bank unless there shall have been delivered to
  Executive a copy of a resolution duly adopted by the affirmative vote of a
  majority of the entire membership of the Board at a meeting of such Board
  called and held for the purpose (after reasonable notice to Executive and an
  opportunity for Executive to be heard before the Board with counsel), of
  finding that, in the good faith opinion of the Board, Executive was guilty of
  the conduct described above and specifying the particulars thereof.

          c.
Voluntary Termination by Executive. In addition to his other rights to
terminate under this Agreement, Executive may voluntarily terminate employment
during the term of this Agreement upon at least sixty (60) days prior written
notice to the Board, in which case Executive shall receive only his
compensation, vested rights and employee benefits up to the date of his
termination.

          d.
Without Cause or With Good Reason.

	
 

	
 

	
 

	
 

	
i.

	
In addition
  to a termination pursuant to Sections 10(a) through 10(c), the Board may, by
  written notice to Executive, immediately terminate his employment at any time
  for a reason other than Cause (a termination “Without Cause”) and Executive
  may, by written notice to the Board, immediately terminate this Agreement at
  any time within ninety (90) days following an event constituting “Good
  Reason,” as defined below (a termination “With Good Reason”).

	
 

	
 

	
 

	
 

	
ii.

	
Subject to
  Section 11, in the event of a termination under this Section 10(d), the Bank
  shall continue Executive’s base salary (at the rate in effect on his
  termination date) for a period of twelve (12) months from the effective date
  of termination. In addition, for a period of twelve (12) months following
  your termination date, the Bank shall (i) provide, at the Bank’s expense,

4

	
 

	
 

	
 

	
 

	
 

	
health
  insurance coverage for Executive and his dependents and (ii) pay all
  membership dues and fees relating to Executive’s membership in the Union
  League and the Merion Cricket Club.

	
 

	
 

	
 

	
 

	
iii.

	
“Good
  Reason” shall exist if, without Executive’s express written consent, there
  occurs, during the term of this Agreement, a material reduction in
  Executive’s responsibilities or authority in connection with his employment
  with the Company or the Bank.

          11. Termination in Connection with a Change in
Control.

          a.
For purposes of this Agreement, a “Change in Control” means any of the
following events:

	
 

	
 

	
 

	
 

	
i.

	
Merger:
  The Company or the Bank merges into or consolidates with another corporation,
  or merges another corporation into the Company or the Bank, and as a result
  less than a majority of the combined voting power of the resulting
  corporation immediately after the merger or consolidation is held by persons
  who were stockholders of the Company or the Bank immediately before the
  merger or consolidation.

	
 

	
 

	
 

	
 

	
ii.

	
Acquisition
  of Significant Share Ownership: There is filed, or
  required to be filed, a report on Schedule 13D or another form or schedule
  (other than Schedule 13G) required under Sections 13(d) or 14(d) of the
  Securities Exchange Act of 1934, if the schedule discloses that the filing
  person or persons acting in concert has or have become the beneficial owner
  of 25% or more of a class of the Company’s voting securities, but this clause
  (b) shall not apply to beneficial ownership of Company voting shares held in
  a fiduciary capacity by an entity of which the Company directly or indirectly
  beneficially owns 50% or more of its outstanding voting securities.

	
 

	
 

	
 

	
 

	
iii.

	
Change in
  Board Composition: During any period of two
  consecutive years, individuals who constitute the Company’s or the Bank’s
  Board of Directors at the beginning of the two-year period cease for any
  reason to constitute at least a majority of the Company’s or the Bank’s Board
  of Directors; provided, however, that for purposes of this clause (iii), each
  director who is first elected by the board (or first nominated by the board
  for election by the stockholders) by a vote of at least two-thirds (2/3) of
  the directors who were directors at the beginning of the two-year period
  shall be deemed to have also been a director at the beginning of such period;
  or

	
 

	
 

	
 

	
 

	
iv.

	
Sale of
  Assets: The Company or the Bank sells to a third party
  all or substantially all of its assets. 

5

	
 

	
 

	
 

	
 

	
Notwithstanding
  anything in this Agreement to the contrary, in no event shall the
  reorganization of the Bank from the mutual holding company form of
  organization to the full stock holding company form of organization
  (including the elimination of the mutual holding company) constitute a
  “Change in Control” for purposes of this Agreement.

          b.
If, prior to November 13, 2009, (i) there occurs a Change in Control and
(ii)(A)the Company and the Bank terminate Executive’s employment Without Cause,
or (B) Executive voluntarily terminates his employment With Good Reason, the
Bank shall pay Executive an amount equal to his base salary (at the rate in
effect on his termination date) for the greater of (x) eighteen (18) months or
(y) a period equal to the excess of thirty-six (36) months over the number of
full months Executive was employed by the Bank from November 13, 2006 through
his termination date. Such payment shall be made in installments in accordance
with the Bank’s customary payroll practices. In addition, for a period of
twelve months following Executive’s termination date, the Bank shall (i)
provide, at the Bank’s expense, health insurance coverage for Executive and his
dependents and (ii) pay all membership dues and fees relating to Executive’s
membership in the Union League and the Merion Cricket Club. The benefits
payable or provided under this Section 11 shall be in lieu of, and not in
addition to, any benefit otherwise payable or provided under Section 10(d) of
this Agreement in connection with the Executive’s termination of employment in
the circumstances set forth therein.

          12. Indemnification and Liability
Insurance.

          a.
Indemnification. The Company and the Bank agree to indemnify Executive
(and his heirs, executors, and administrators), and to advance expenses related
thereto, to the fullest extent permitted under applicable law and regulations
against any and all expenses and liabilities reasonably incurred by him in connection
with or arising out of any action, suit, or proceeding in which he may be
involved by reason of his having been a director or Executive of the Company,
the Bank or any of their subsidiaries (whether or not he continues to be a
director or Executive at the time of incurring any such expenses or
liabilities) such expenses and liabilities to include, but not be limited to,
judgments, court costs, and attorneys’ fees and the costs of reasonable
settlements, such settlements to be approved by the Board, if such action is
brought against Executive in his capacity as an Executive or director of the
Company and the Bank or any of their subsidiaries. Indemnification for expenses
shall not extend to matters for which Executive has been terminated for Cause. Nothing
contained herein shall be deemed to provide indemnification prohibited by
applicable law or regulation. Notwithstanding anything herein to the contrary,
the obligations of this Section 13 shall survive the term of this Agreement by
a period of six (6) years.

          b.
Insurance. During the period in which indemnification of Executive is
required under this Section, the Company and the Bank shall provide Executive
(and his heirs, executors, and administrators) with coverage under a directors’
and officers’ liability policy at the expense of the Company and the Bank, at
least equivalent to such coverage provided to directors and senior executives
of the Company and the Bank.

6

          13. Limitation of Benefits under Certain
Circumstances. If the payments and benefits pursuant to Section
11 of this Agreement, either alone or together with other payments and benefits
which Executive has the right to receive from the Company and the Bank, would
constitute a “parachute payment” under Section 280G of the Internal Revenue
Code of 1986, as amended (the “Code”), the payments and benefits pursuant to
Section 11 shall be reduced or revised, in the manner determined by Executive,
by the amount, if any, which is the minimum necessary to result in no portion of
the payments and benefits under Section 11 being non-deductible to the Company
and the Bank 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 11 shall be based upon
the opinion of the Company and the Bank’s independent public accountants and
paid for by the Company and the Bank. In the event that the Company, the Bank
and/or Executive do not agree with the opinion of such counsel, (i) the Company
and the Bank shall pay to Executive the maximum amount of payments and benefits
pursuant to Section 11, as selected by Executive, which such opinion indicates
there is a high probability do not result in any of such payments and benefits
being non-deductible to the Company and the Bank and subject to the imposition
of the excise tax imposed under Section 4999 of the Code and (ii) the Company
and the Bank may request, and Executive shall have the right to demand that they
request, a ruling from the IRS as to whether the disputed payments and benefits
pursuant to Section 11 have such consequences. Any such request for a ruling
from the IRS shall be promptly prepared and filed by the Company and the Bank,
but in no event later than thirty (30) days from the date of the opinion of
counsel referred to above, and shall be subject to Executive’s approval prior
to filing, which shall not be unreasonably withheld. The Company, the Bank and
Executive agree to be bound by any ruling received from the IRS and to make
appropriate payments to each other to reflect any such rulings, together with
interest at the applicable federal rate provided for in Section 7872(f)(2) of
the Code. Nothing contained herein shall result in a reduction of any payments
or benefits to which Executive may be entitled upon termination of employment
other than pursuant to Section 11 hereof, or a reduction in the payments and
benefits specified in Section 11 below zero.

          14. Successors and Assigns.

          a.
This Agreement shall inure to the benefit of and be binding upon any corporate
or other successor to the Company and the Bank which shall acquire, directly or
indirectly, by merger, consolidation, purchase or otherwise, all or
substantially all of the assets or stock of the Company and the Bank.

          b.
Since the Company and the Bank are contracting for the unique and personal
skills of Executive, Executive shall be precluded from assigning or delegating
his rights or duties hereunder without first obtaining the written consent of
the Company and the Bank.

          15. No Mitigation. Executive shall
not be required to mitigate the amount of any payment provided for in this
Agreement by seeking other employment or otherwise and no such payment shall be
offset or reduced by the amount of any compensation or benefits provided to
Executive in any subsequent employment.

7

          16. Notices. All notices, requests,
demands and other communications in connection with this Agreement shall be made
in writing and shall be deemed to have been given when delivered by hand or 48
hours after mailing at any general or branch United States Post Office, by
registered or certified mail, postage prepaid, addressed to the Company and/or
the Bank at their principal business offices and to Executive at his home
address as maintained in the records of the Company and the Bank.

          17. No Plan Created by this Agreement.
Executive, the Company and the Bank expressly declare and agree that this
Agreement was negotiated among them and that no provision or provisions of this
Agreement are intended to, or shall be deemed to, create any plan for purposes
of the Employee Retirement Income Security Act or any other law or regulation,
and each party expressly waives any right to assert the contrary. Any assertion
in any judicial or administrative filing, hearing, or process that such a plan
was so created by this Agreement shall be deemed a material breach of this
Agreement by the party making such an assertion.

          18. Amendments. No amendments or
additions to this Agreement shall be binding unless made in writing and signed
by all of the parties, except as herein otherwise specifically provided.

          19. Applicable Law. Except to the
extent preempted by federal law, the laws of the Commonwealth of Pennsylvania
shall govern this Agreement in all respects, whether as to its validity,
construction, capacity, performance or otherwise.

          20. Severability. The provisions of
this Agreement shall be deemed severable and the invalidity or unenforceability
of any provision shall not affect the validity or enforceability of the other
provisions hereof.

          21. Headings. Headings contained
herein are for convenience of reference only.

          22. Entire Agreement. This
Agreement, together with any understanding or modifications thereof as agreed
to in writing by the parties, shall constitute the entire agreement among the
parties hereto with respect to the subject matter hereof, other than written
agreements with respect to specific plans, programs or arrangements described
in Sections 5 and 6. Notwithstanding anything herein to the contrary,
Executive’s Confidentiality, Non-Competition and Non-Solicitation Agreement
with the Bank dated as of October 18, 2006 shall remain in full force and
effect.

          23. Required Provisions. In the
event any of other provisions of this Agreement are in conflict with the
provisions of this Section 23, this Section 23 shall prevail.

	
 

	
 

	
 

	
 

	
a.

	
The Bank’s
  board of directors may terminate Executive’s employment at any time, but any
  termination by the Bank, other than termination for Cause, shall not
  prejudice Executive’s right to compensation or other benefits under this
  Agreement. Executive shall not have the right to receive compensation or
  other benefits for any period after termination for Cause.

8

	
 

	
 

	
 

	
 

	
b.

	
If Executive
  is suspended from office and/or temporarily prohibited from participating in
  the conduct of the Bank’s affairs by a notice served under Section 8(e)(3) or
  8(g)(1) of the Federal Deposit Insurance Act, 12 U.S.C. §1818(e)(3) or
  (g)(1); the Bank’s obligations under this Agreement shall be suspended as of
  the date of service, unless stayed by appropriate proceedings. If the charges
  in the notice are dismissed, the Bank may in its discretion: (i) pay
  Executive all or part of the compensation withheld while its contract
  obligations were suspended; and (ii) reinstate (in whole or in part) any of
  the obligations which were suspended.

	
 

	
 

	
 

	
 

	
c.

	
If Executive
  is removed and/or permanently prohibited from participating in the conduct of
  the Bank’s affairs by an order issued under Section 8(e)(4) or 8(g)(1) of the
  Federal Deposit Insurance Act, 12 U.S.C. §1818(e)(4) or (g)(1), all
  obligations of the Bank under this Agreement shall terminate as of the
  effective date of the order, but vested rights of the contracting parties
  shall not be affected.

	
 

	
 

	
 

	
 

	
d.

	
If the Bank
  is in default as defined in Section 3(x)(1) of the Federal Deposit Insurance
  Act, 12 U.S.C. §1813(x)(1) all obligations of the Bank under this Agreement
  shall terminate as of the date of default, but this paragraph shall not
  affect any vested rights of the contracting parties.

	
 

	
 

	
 

	
 

	
e.

	
All
  obligations under this Agreement shall be terminated, except to the extent
  determined that continuation of the contract is necessary for the continued
  operation of the Bank: (i) by the Director of the OTS (or his or her
  designee), at the time the Federal Deposit Insurance Corporation (FDIC)
  enters into an agreement to provide assistance to or on behalf of the Bank
  under the authority contained in Section 13(c) of the Federal Deposit
  Insurance Act, 12 U.S.C. §1823(c); or (ii) by the Director of the OTS (or his
  or her designee) at the time the Director (or his designee) approves a
  supervisory merger to resolve problems related to the operations of the Bank
  or when the Bank is determined by the Director to be in an unsafe or unsound
  condition. Any rights of the parties that have already vested, however, shall
  not be affected by such action.

	
 

	
 

	
 

	
 

	
f.

	
Any payments
  made to Executive pursuant to this Agreement, or otherwise, are subject to
  and conditioned upon their compliance with 12 U.S.C. §1828(k) and FDIC
  regulation 12 C.F.R. Part 359, Golden Parachute and Indemnification Payments.

          24. Application of Section 409A. In the
event that, as of the date of Executive’s termination of employment, the stock
of the company is publicly traded on an established securities market, the
commencement date of payment of any amount due Executive under Sections 10 or
11 shall be deferred for a period of six (6) months to the extent such deferral
is required under Section 409A of the Code.

9

          IN WITNESS WHEREOF, the parties hereto have
executed this Agreement on the date first set forth above.

	
 

	
 

	
 

	
 

	
ATTEST:

	
 

	
BENEFICIAL MUTUAL BANCORP, INC. 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	 

	
 

	
 

	 

	
Corporate
  Secretary

	
 

	
 

	
For the
  Entire Board of Directors

	
 

	
 

	
 

	
 

	
ATTEST:

	
 

	
BENEFICIAL MUTUAL SAVINGS BANK

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	 

	
 

	
 

	 

	
Corporate
  Secretary

	
 

	
 

	
For the
  Entire Board of Directors

	
 

	
 

	
 

	
 

	
WITNESS:

	
 

	
EXECUTIVE

	
 

	
 

	
 

	
 

	 

	
 

	 

	
 

	
 

	
Gerard P.
  Cuddy

10Untitled Document

PROPOSED

  BENEFICIAL MUTUAL SAVINGS BANK

  STOCK-BASED DEFERRAL PLAN

1.
  
Purpose.

The Beneficial Mutual Savings
  Bank Stock-Based Deferral Plan (the “Plan”) provides key executives
  and members of the Board of Directors of Beneficial Mutual Savings Bank (the
  “Bank”) with the opportunity to elect to defer compensation received
  from the Bank for their services and, thereby, accumulate additional shares
  of the Beneficial Mutual Bancorp, Inc. common stock. The Plan is intended to
  constitute a deferred compensation plan that satisfies the requirements of Section
  409A of the Internal Revenue Code of 1986, as amended (“Code”).

2. 
Definitions.

As used in the Plan, the
  following terms have the meanings indicated: 

Board
  means the Board of Directors of the Bank.

Change in Control
  is intended to have the same meaning as under Section 409A of the Code and any
  regulations or guidance issued under such provision.

Code means
  the Internal Revenue Code of 1986, as amended. 

Committee
  means the Compensation Committee of the Board.

Company
  means Beneficial Mutual Bancorp, Inc.

Company Stock
  means the common stock of the Company.

Deferred Stock Account
  means a bookkeeping account reflecting the investment of a Participant’s
  deferred fees in Company Stock Units and any adjustments thereto.

Director
  means a member of the Board of Directors of the Bank, the Company, or any affiliate.

Effective Date
  means _____________, 2007.

Compensation
  means, for participating employee, the cash compensations paid by the Bank or
  the Company for the performance of services and, for a Director, the retainer
  fees and/or meeting fees payable in connection with his or her service on the
  Board or the board of directors of the Company or the Bank for any Plan Year.
  

Participant
  means an employee or Director who has been designated as a Plan participant
  pursuant to Section 3 of the Plan.

Plan Year
  means the calendar year.

Separation from
  Service is intended to have the same meaning as under Code section
  409A and any regulations or guidance issued under such provision.

Share means
  a share of Company Stock.

Trust means
  a trust created for the purposes specified in Section 10. 

3. 
Participation
  in the Plan.

As of the Effective Date
  of the Plan those officers and directors listed on Appendix A will be Participants
  in the Plan. After the Effective Date, the Board will designate by written resolution
  the officers and Directors who may participate in the Plan. Participation in
  the Plan shall commence upon the submission of a timely deferral election form
  to the Committee in the manner prescribed below.

4. 
Fee Deferrals.

(a)
A Participant may elect
  to defer the payment of Compensation (in increments of 1% up to 100%) that would
  otherwise be payable during the Plan Year by completing a deferral election.
  A deferral election must specify the applicable percentage of Compensation that
  the Participant wishes to defer. A deferral election shall pertain to all Compensation
  payable in cash during a Plan Year.

(b)
 A deferral election
  must be in writing and be delivered to the Bank prior to the start of the Plan
  Year to which it pertains; provided, however, that a Participant who first become
  eligible to participate in the Plan on or after the Effective Date shall have
  30 days to submit a deferral election covering Compensation payable over the
  balance of the Plan Year. A deferral election shall be irrevocable and may not
  be amended with respect to the Plan Year to which it pertains. A deferral election
  may be made only for a single Plan Year or may be made applicable to all future
  Plan Years until revoked. Any revocation or amendment of a deferral election
  shall be effective as of the first day of the next Plan Year after the revocation
  or amendment is made.

(c)
 All amounts deferred
  under the Plan shall be held in Shares. With respect to all amounts for which
  a deferral election is made, the Company shall transfer such amounts to the
  Trust as soon as is reasonably practicable after the time when the Compensation
  otherwise would have been payable in cash to the Participant or at such other
  times as the Committee, in its sole discretion, shall determine. Thereafter,
  the trustee of the Trust shall determine the number of Shares to be credited
  to an individual Participant’s Deferred Stock Account by reference to
  the total number of Shares acquired by the Trust with the proceeds of each transfer
  and the proportion that the Compensation included in such transfer bears to
  the total of all Compensation transferred to the Trust.

5. 
Share Accounting.

(a)
 All Shares credited
  to a Participant’s Deferred Stock Account shall be credited with the cash
  dividends that are declared and paid on Company Stock. On each record date,
  the Bank shall determine the amount of cash dividends to be paid per Share.
  On the payment date of such dividend, the Bank shall credit each Participant’s
  Deferred Stock Account with the cash dividends paid on the Shares. The Trustee
  will reinvest the cash dividends in Company Stock in accordance with Section
  7 of this Plan.

(b)
 Shares in a Participant’s
  Deferred Stock Account may not be sold, assigned, transferred, disposed of,
  pledged, hypothecated or otherwise encumbered until distributed from the Plan.

6. 
Distribution
  of Accounts.

(a)
 A Participant may elect
  the timing of distributions from the Participant’s Deferred Stock Account.
  Distributions from a Participant’s Deferred Stock Account shall commence
  at one of the following specified events elected by the Participant:

(i)
 the Participant’s
  Separation from Service for any reason (including death); or

(ii)
 a specified number
  of years between one year and five years after the Participant’s Separation
  from Service.

In addition, a Participant
  may make a separate election for distributions to commence at a Change in Control.

(b)
 If a Participant does
  not make an election under subsection (a)(ii), distribution of the Participant’s
  Deferred Stock Account shall commence at Separation from Service. Prior to Separation
  from Service, a Participant who has previously elected commencement at Separation
  from Service (or made no previous election) may make one subsequent election.
  The subsequent election must be submitted at least twelve months prior to Separation
  from Service and shall take effect twelve months after the date on which it
  is submitted. The subsequent distribution election must elect the specified
  time under subsection (a)(ii) as five years after Separation from Service. The
  Committee may establish additional procedures, conditions, and limitations relating
  to the submission of a subsequent election.

(c)
 A Participant’s
  Deferred Stock Account shall be distributed in a single lump sum payment, unless
  the Participant elects to receive a distribution in equal annual installments
  over at least two and not more than 10 years.

(d)
 Distributions will be
  made in whole Shares. Fractional Shares shall be disregarded for distribution
  purposes.

7. 
Trust.

(a)
 As soon as practicable
  after the Effective Date, the Bank shall establish a trust for the purposes
  set forth in this Plan. The Bank from time to time transfer to the Trust cash
  in an amount equal to Participant’s deferred Compensation for the purpose
  of acquiring Shares. In no event shall the Bank issue or contribute Shares directly
  to the Trust.

(b)
 The Trust and its assets
  shall remain subject to the claims of the Bank’s creditors. All benefit
  obligations under this Plan shall be paid from the general assets of the Bank,
  which shall include the assets of the Trust in the event of the Bank’s
  insolvency. Any interest that the Participant may be deemed to have under this
  Plan may not be sold, hypothecated or transferred (including, without limitation,
  transfer by gift), except by will or the laws of descent and distribution. Shares
  issued to the Trust shall be issued in the name of the Trustee. The Trustee
  shall invest all cash dividends paid on Shares in additional Shares. Unless
  otherwise determined by the Committee, a Participant shall have the right to
  direct the Trustee as to the voting of the Shares credited to his or her Deferred
  Stock Account.

(c)
 The Bank shall bear
  all expenses associated with the acquisition of Shares by the Trust and the
  maintenance of the Trust.

8. 
No Acceleration
  of Benefits.

Notwithstanding any other
  provision in this Plan to the contrary, the time or schedule for any payment
  of a Participant’s Deferred Stock Account under this Plan shall not be
  accelerated under any circumstances.

9. 
Effect of
  Stock Dividends and Other Changes to Company Stock.

In the event of a stock
  dividend, stock split or combination of Shares, recapitalization or merger in
  which the Company is the surviving corporation or other change in the Company’s
  capital stock, the number and kind of shares of Company Stock to be subject
  to the Plan and the maximum number of Shares which are authorized for distribution
  under the Plan shall be appropriately adjusted by the Board, whose determination
  shall be binding on all persons. 

10. 
Interpretation
  and Administration of the Plan.

The Committee shall administer,
  construe and interpret the Plan. Any decision of the Committee with respect
  to the Plan shall be final, conclusive and binding upon all Participants. The
  Committee may act by a majority of its members. The Committee may authorize
  any member of the Committee or any officer of the Company to execute and deliver
  documents on behalf of the Committee. The Committee may consult with counsel,
  who may be counsel to the Bank, and shall not incur any liability for action
  taken in good faith in reliance upon the advice of counsel. The Committee may
  designate an officer of the Bank to be authorized to take or cause to be taken
  such actions of a ministerial nature as necessary to effectuate the intent and
  purposes of the Plan, including issuing Company Stock for the Plan, maintaining
  records of the Plan, and arranging for distributions in accordance with this
  Plan document. The Committee shall interpret this Plan for all purposes in accordance
  with Code Section 409A and the regulations thereunder and any provision of the
  Plan shall be deemed modified to the extent necessary to comply with Code Section
  409A and the regulations thereunder.

11. 
Term of the
  Plan.

The Plan shall become effective
  as of the Effective Date and continue in effect unless terminated by action
  of the Board. Any termination of the Plan by the Board shall not alter or impair
  any of the rights or obligations for any benefit previously deferred under the
  Plan.

12. 
Amendment
  of the Plan.

The Board may suspend or
  terminate the Plan or revise or amend the Plan in any respect; provided, any
  amendment or termination of the Plan shall not adversely affect a Participant
  with respect to any benefit previously deferred under the Plan.

13. 
Rights Under
  the Plan.

The Plan shall not constitute
  or be evidence of any agreement or understanding, express or implied, that the
  Bank will retain any Participant as an employee or director for any period of
  time.

14. 
Beneficiary.

A Participant may designate
  in a writing delivered to the Committee, one or more beneficiaries (which may
  include a trust) to receive any distributions under the Plan after the Participant’s
  death. If a Participant fails to designate a beneficiary, or no designated beneficiary
  survives the Participant, any payments to be made under the Plan after death
  shall be made to the personal representative of the Participant’s estate.
  

15. 
Notice.

All notices and other communications
  required or permitted to be given under this Plan shall be in writing and shall
  be deemed to have been duly given if delivered personally or mailed first class,
  postage prepaid, as follows: (a) if to the Bank - at its principal business
  address to the attention of the Chairman of the Committee; (b) if to any Participant
  - at the home address of the Participant as reflected in the records of the
  Bank at the time of sending the notice or other communication.

16. 
Construction.

The Plan shall be construed
  and enforced according to the laws of the Commonwealth of Pennsylvania, unless
  federal law applies. All transactions under this Plan shall also be subject
  to compliance with applicable securities laws. Headings and captions are for
  convenience only and have no substantive meaning. Reference to one gender includes
  the other, and references to the singular and plural include each other.

17. 
Vesting.

 Employees who participate
  in the Plan are always 100% vested in their Deferred Stock Accounts. Non-employee
  directors who participate in the Plan do not vest in their Deferred Stock Accounts
  until the occurrence of one of the following events:

1.
 The first day of the
  calendar year following the attainment of age seventy (70) by the Participant;

2.
 Separation from Board
  service due to illness or any condition rendering the Participant unable to
  perform his duties as Board Member. Such condition will be determined by the
  Board in an objective manner, based on all available evidence;

3.
 The death of the Participant;

4.
 Loss of the Participant’s
  position on the Board due to a change in ownership of the Bank or the Company,
  a change in composition of the Board, or any other event beyond the Participant’s
  control.

Resignation from Board Membership
  before the occurrence of one of the above stated events shall result in forfeiture
  of all deferred amounts and investment gains credited to deferred amounts. An
  exception shall be a resignation from Board Membership followed by the Participant’s
  appointment by the Board of a Manager Emeritus, and the performance by the Participant
  of all duties as a Manager Emeritus.

18. 
Special Transition
  Rule.

 A Participant in the Company’s
  cash-based deferred compensation plan(s) may elect, not later than 30 days after
  the Effective Date, to effect a one-time transfer of amounts accrued on their
  behalf under such plan to this Plan. All transferred amounts shall thereafter
  be treated in the same manner as any other Compensation deferred under this
  Plan and shall, for all purposes, be subject to the provisions of this Plan.

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