Document:

Employment Agreement

 Exhibit 10.1 
 EMPLOYMENT AGREEMENT 
 This EMPLOYMENT AGREEMENT (the
“Agreement”) is made and entered into this 27th day of December, 2009, by and among JOHN A. FEATHERMAN, III (“Executive”) and FIRST NATIONAL BANK OF CHESTER COUNTY, a national banking association having its
principal office in West Chester, Pennsylvania (“FNB”), TOWER BANCORP, INC., a Pennsylvania corporation having its principal office in Harrisburg, Pennsylvania (“Tower”), and FIRST CHESTER COUNTY CORPORATION, a
Pennsylvania corporation having its principal office in West Chester, Pennsylvania (“First Chester”). 
 WITNESSETH
THAT: 
 WHEREAS, FNB is a wholly-owned subsidiary of First Chester; 

WHEREAS, the Executive, First Chester and FNB are parties to that certain Executive Employment Agreement dated as of June 27, 2008,
as amended on December 23, 2008 (as amended, the “2008 Agreement”), pursuant to which the Executive serves as Chairman and Chief Executive Officer of First Chester and FNB, and pursuant to which the Executive is entitled to certain
benefits and compensation following a termination of employment subsequent to a change of control of FNB or First Chester; 

WHEREAS, Tower and First Chester are parties to that certain Agreement and Plan of Merger dated as of December 27, 2009 (the
“Merger Agreement”) pursuant to which First Chester will merge with and into Tower, with Tower as the surviving corporation (the “Merger”); 
 WHEREAS, the Merger will constitute a change of control of First Chester under the 2008 Agreement; 
 WHEREAS, the Executive, First Chester, FNB and Tower desire to terminate the 2008 Agreement upon the effective date of the Merger and employ the Executive as Chairman and Chief Executive Officer of FNB
and as Vice Chairman of Tower following the completion of the Merger, all in consideration for and upon the terms and conditions set forth in this Agreement; and 
 WHEREAS, this Agreement is intended to supersede and replace in its entirety the 2008 Agreement upon the effective date of the Merger. 

NOW, THEREFORE, in consideration of the premises and mutual covenants and agreements hereinafter set forth, intending to be legally
bound, the parties agree as follows: 
 1. Employment Responsibilities and Duties. 

(a) Tower and FNB hereby agree to employ Executive and Executive hereby agrees to serve as Chairman and Chief Executive Officer of FNB
and as Vice Chairman of Tower. The Executive shall report directly to the President and Chief Executive Officer of Tower. 
 (b)
Executive shall devote his full working time and best efforts to the performance of his responsibilities and duties hereunder and to the retention of the customer relationships to which First Chester or any of its subsidiaries has been a party prior
to the date of this Agreement and the expansion of the customer relationships of FNB subsequent to the date of this Agreement. During the Employment Period, Executive shall not, without the prior written consent of the Board of Directors of Tower,
render services as an employee, independent contractor, or otherwise, whether or not compensated, to any person or entity other than FNB or its affiliates; provided that Executive may, where involvement in such activities does not individually or in
the 

  
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aggregate significantly interfere with the performance by Executive of his duties or violate the provisions of Section 7 hereof, (i) render services to charitable organizations,
(ii) manage his personal investments, and (iii) with the prior written permission of the Board of Directors of Tower, hold such other directorships or part-time academic appointments or have such other business affiliations as would
otherwise be prohibited under this Section 1. 
 2. Term of Employment. 

(a) Employment Period. The term of Executive’s employment under this Agreement shall be the period commencing on the
Effective Date of the Merger as defined in the Merger Agreement (hereinafter, the “Commencement Date”), and continuing for a three (3) year period (the “Employment Period”); provided, however, that the Employment Period
shall be automatically renewed one year later on the first anniversary date of the Commencement Date (the “Renewal Date”) for a period ending three (3) years from the Renewal Date unless either party shall give written notice of
non-renewal to the other party at least ninety (90) days prior to the Renewal Date, in which event this Agreement shall terminate at the end of the Employment Period. If this Agreement is renewed on the Renewal Date, it will be automatically
renewed on the first anniversary date of the Renewal Date and each subsequent year (the “Annual Renewal Date”,) for a period ending three (3) years from each Annual Renewal Date, unless either party gives written notice of non-renewal
to the other party at least ninety (90) days prior to the Annual Renewal Date, in which case this Agreement will continue in effect for a term ending two (2) years from the Annual Renewal Date immediately following such notice. 

(b) Termination for Cause. Notwithstanding the provisions of Section 2(a) of this Agreement, this Agreement may be terminated
by Tower or FNB for Cause (as defined herein) upon written notice from the Board of Directors of Tower to Executive. As used in this Agreement, “Cause” shall mean any of the following: 

(i) Executive’s conviction of or plea of guilty or nolo contendere to a felony, a crime of falsehood or a crime
involving moral turpitude, or the actual incarceration of Executive for a period of thirty (30) consecutive days or more; 
 (ii) Executive’s willful continuing failure to follow the lawful instructions of the Board of Directors of Tower or FNB (which instructions must be consistent with the terms of this Agreement), other
than a failure resulting from Executive’s incapacity because of physical or mental illness, continuing for a period of at least thirty (30) days after the Executive’s receipt of written notice of such failure and Executive’s
failure to cure or correct such conduct within such thirty (30) day period, as determined by the Board of Directors of Tower or FNB in its sole and absolute discretion; provided, however, that Tower or FNB may immediately terminate this
Agreement for Cause in the event that the Board of Directors of either Tower or FNB determines, in its sole and absolute discretion, that Executive’s conduct has caused significant or irreparable harm to Tower or FNB; or 

(iii) A government regulatory agency recommends or orders in writing that Tower or FNB terminate the employment of
Executive with Tower or FNB or relieve him of his duties as such relate to Tower or FNB. 
 If this Agreement is terminated for
Cause, all of Executive’s rights under this Agreement shall cease as of the effective date of such termination, except that: 
 (i) FNB shall pay to Executive the unpaid portion, if any, of his Annual Base Salary through the date of termination; and 

(ii) FNB shall provide to Executive such post-employment benefits, if any, as may be provided for under the terms of the
employee benefit plans of Tower and FNB then in effect. 
 (c) Termination for Good Reason or No Reason. Notwithstanding
the provisions of Section 2(a) of this Agreement, this Agreement shall terminate automatically upon Executive’s termination of employment for Good Reason. The term “Good Reason” shall mean (i) a reduction in salary or
material reduction in benefits, including 

  
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any incentive compensation plan, except in cases of a national financial depression or emergency when such reduction has been implemented generally by the Board of Directors of Tower for
Tower’s senior management, (ii) a reassignment which assigns full-time employment duties to Executive at a location more than twenty-five (25) miles from FNB’s principal executive office on the date of this Agreement, or
(iii) any other material breach or default by Tower or FNB under any term or provision of this Agreement, including any reduction, in any material respect and without Executive’s consent, of the authority, duties or other terms and
conditions of Executive’s employment hereunder, in all cases after notice from the Executive to Tower at any time within thirty (30) days after the initial existence of any such condition set forth in Section 2(c)(i)-(iii) above.
In addition, the Executive shall have the right to terminate this Agreement upon thirty (30) days notice to Tower for any reason not set forth in Section 2(c)(i)-(iii) above; however, such resignation shall not constitute termination
for “Good Reason.” 
 (d) Death. Notwithstanding the provisions of Section 2(a) of this Agreement, this
Agreement shall terminate automatically upon Executive’s death and Executive’s rights under this Agreement shall cease as of the date of such termination, except that (i) FNB shall pay to Executive’s spouse, personal
representative, or estate the unpaid portion, if any, of his Annual Base Salary through date of death and (ii) FNB shall provide to Executive’s dependents any benefits due under FNB’s employee benefit plans. 

(e) Disability. Executive, Tower and FNB agree that if Executive becomes eligible for employer-provided short-term and/or
long-term disability benefits, or worker’s compensation benefits, then FNB’s obligation to pay Executive his Annual Base Salary shall be reduced by the amount of the disability or worker’s compensation benefits received by Executive.

 Executive, Tower and FNB agree that if, in the judgment of Tower’s Board of Directors, the Executive is unable, as a
result of illness or injury, to perform the essential functions of his position on a full-time basis with or without a reasonable accommodation and without posing a direct threat to himself or others for a period of six months, Tower and FNB will
suffer an undue hardship in continuing the Executive’s employment as set forth in this agreement. Accordingly, this Agreement shall terminate at the end of the six-month period, and all of Executive’s rights under this Agreement shall
cease, with the exception of those rights which Executive may have under FNB’s benefit plans. 
 3. Employment Period
Compensation, Benefits and Expenses. 
 (a) Annual Base Salary. For services performed by Executive under this
Agreement, FNB shall pay Executive an Annual Base Salary during the Employment Period at the rate of Three Hundred Sixty-four Thousand One Hundred Nine Dollars ($364,109) per year, minus applicable withholdings and deductions, payable at the same
times as salaries are payable to other executive employees of FNB. The Annual Base Salary shall be reviewed annually by the Board of Directors of FNB and the Board may, from time to time, increase Executive’s Annual Base Salary, and any and all
such increases shall be deemed to constitute amendments to this Section 3(a) to reflect the increased amounts, effective as of the date established for such increases by the Board. In reviewing adjustments to Annual Base Salary, the Board of
Directors shall consider relevant market data regarding executive salaries at peer financial institutions and the performance of Tower and FNB under the Executive’s leadership. 

(b) Bonus. Executive shall be entitled to receive annual performance bonuses in accordance with any incentive bonus programs as in
effect from time to time during the Employment Period under such terms as may be applicable to officers of Executive’s rank employed by Tower or its affiliates. The payment of any such bonuses will not reduce or otherwise affect any other
obligation of FNB to the Executive provided for in this Agreement. 
 (c) Paid Time Off. During the term of this
Agreement, Executive shall be entitled to paid time off in accordance with the policies of Tower as in effect from time to time as may be applicable to officers of 

  
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Executive’s rank employed by Tower or its affiliates; provided that Executive shall be entitled to no less than six (6) weeks under Tower’s paid time off program. 

(d) Automobile. During the term of this Agreement, FNB shall provide the Executive with exclusive use of an automobile mutually
agreed upon by Executive and Tower. FNB shall be responsible and shall pay for all costs associated with the operation and maintenance of such automobile, including, without limitation, insurance coverage, repairs, maintenance and other operating
and incidental expenses, including registration, fuel or oil. 
 (e) Country Club Membership Fees. FNB shall pay for
Executive’s membership dues, capital fund assessments and similar items necessary or appropriate to maintain a membership at a country club within FNB’s market area as mutually agreed upon by Tower and Executive. 

(f) Stock Based Incentives. During the term of this Agreement, Executive shall be entitled to such stock based incentives as may
be granted from time to time by Tower’s Board of Directors under the Tower’s stock based incentive plans and as are consistent with the Executive’s responsibilities and performance. 

(g) Employee Benefit Plans. During the term of this Agreement, Executive shall be entitled to participate in or receive the
benefits of any employee benefit plan currently in effect at FNB, subject to the terms of said plan, until such time that the Board of Directors authorizes a change in such benefits. 

(h) Business Expenses. During the term of this Agreement, Executive shall be entitled to receive prompt reimbursement for all
reasonable expenses incurred by him, which are properly accounted for, in accordance with the policies and procedures established by the Board of Directors of FNB for its executive officers. 

4. Termination of Employment Following Change of Control of Tower. 

(a) If a Change of Control of Tower (as defined in Section 5(b) of this Agreement) shall occur at any time during the Employment
Period and if Tower shall for any reason terminate Executive’s employment during the Employment Period, other than for “Cause”, within two (2) years following the Change of Control or if Executive terminates his employment for
“Good Reason” as defined in Section 2(c) by delivering a notice in writing (the “Notice of Termination”) to Tower within thirty (30) days following the Change of Control, which termination shall be effective immediately
upon delivery of such Notice of Termination, then Executive shall be entitled to the payments and benefits set forth in Section 5 below. 
 (b) As used in this Agreement, “Change of Control” of Tower shall mean the occurrence of a “change in the ownership or effective control” of Tower as determined under the terms of
Treasury Regulations, Section 1.409A-3(i)(5), as in effect from time to time. 
 5. Rights in Event of Change in Control
of Tower. 
 (a) In the event that Executive is entitled to payment pursuant to Section 4(a) above as a result of a
termination following a Change of Control or termination for “Good Reason,” Executive shall be entitled to receive the compensation and benefits set forth below: 

(i) Executive shall be paid, within twenty (20) days following termination, a lump sum cash payment equal to 2.99
times the sum of (1) the highest Annual Base Salary as defined in Section 3(a) during the immediately preceding three calendar years and (2) the highest cash bonus and other cash incentive compensation earned by him with respect to
one of the three calendar years immediately preceding the year of termination; provided, however, that in calculating the foregoing payment, the $295,888.00 in cash payments made to Executive in 2009 pursuant to the First Chester and/or FNB 2009
Annual Incentive Plan and 2009 Long Term Executive Incentive Plan shall be excluded. 

  
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 (ii) In addition, for a period of thirty-six (36) months from the date
of termination of employment, Executive shall be permitted to continue participation in and Tower shall maintain the same level of contribution for Executive’s participation in Tower’s life, disability, medical/health insurance and other
health and welfare benefits in effect with respect to Executive during the one (1) year prior to his termination of employment, or, if Tower is not permitted by the insurance carriers to provide such benefits because Executive is no longer an
employee, a dollar amount equal to the cost to Executive of obtaining such benefits (or substantially similar benefits). 
 (b)
Should the total of all amounts or benefits payable under this Agreement, together with any other payments which Executive has a right to receive under this Agreement or otherwise from Tower, FNB, any affiliates or subsidiaries of Tower or FNB, or
any successors of any of the foregoing, result in the imposition of an excise tax under Internal Revenue Code Section 4999 (or any successor thereto), Executive shall be entitled to an additional “excise tax” adjustment payment in an
amount such that, after the payment of all federal and state income and excise taxes, Executive will be in the same after-tax position as if no excise tax had been imposed. Any payment or benefit which is required to be included under Internal
Revenue Code 280G or 4999 (or any successor provisions thereto) for purposes of determining whether an excise tax is payable shall be deemed a payment “made to Executive” or a payment “which Executive has a right to receive” for
purposes of this provision. Tower or FNB (or their successor) shall be responsible for the costs of calculation of the deductibility of payments and benefits and the excise tax by Tower’s independent certified accountant and tax counsel and
shall notify Executive of the amount of excise tax prior to the time such excise tax is due. If at any time it is determined that the additional “excise tax” adjustment payment previously made to Executive was insufficient to cover the
effect of the excise tax, the gross-up payment pursuant to this provision shall be increased to make Executive whole, including an amount to cover the payment of any penalties resulting from any incorrect or late payment of the excise tax resulting
from the prior calculation. All such amounts required to be paid hereunder shall be paid at the time any withholdings may be required (or, if earlier, the time Executive shall be required to pay such amounts) under applicable law, and any additional
amounts to which Executive may be entitled shall be paid or reimbursed no later than fifteen (15) days following confirmation of such amount by Tower’s independent accountants; provided however, that any payments to be made under this
Section 5(b) shall in all events be made no later than the end of the Executive’s taxable year next following the taxable year in which the Executive remits such excise tax payments. In the event any amounts paid hereunder are subsequently
determined to be in error because estimates were required or otherwise, the parties agree to reimburse each other to correct such error, as appropriate, and to pay interest thereon at the applicable federal rate (as determined under Internal Revenue
Code Section 1274 for the period of time such erroneous amount remained outstanding and unreimbursed). The parties recognize that the actual implementation of the provisions of this subsection are complex and agree to deal with each other in
good faith to resolve any questions or disagreements arising hereunder. 
 6. Rights in Event of Termination of Employment
Absent Change in Control of Tower. If Executive’s employment is involuntarily terminated by Tower or FNB without Cause, or Executive’s employment is terminated by Executive for Good Reason pursuant to Section 2(c) and a Change in
Control of Tower has not occurred, then Tower shall pay (or cause to be paid) to Executive, within twenty (20) days following termination, a lump sum cash payment equal to the remainder of amounts that would otherwise be payable to Executive
through the then remaining term of this Agreement paid as if the remaining unexpired term (or remaining Employment Period) was three (3) years. The amount shall be subject to federal, state and local tax withholdings. In addition, Executive
shall be permitted to continue participation in, and Tower shall maintain the same level of contribution for, Executive’s participation in Tower’s life, disability, medical/health insurance and other health and welfare benefits in effect
with respect to Executive during the one (1) year prior to his termination of employment through the then remaining term of the Agreement as if the remaining unexpired term (or remaining Employment Period) was three (3) years or, if Tower
cannot provide such benefits because Executive is no longer an employee, a dollar amount equal to the cost to Executive of obtaining such benefits (or substantially similar benefits). In addition, if permitted pursuant to the terms of the plan,
Executive shall receive additional retirement benefits to which he would have been entitled had his employment continued through the then 

  
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remaining term of the Agreement computed as if the remaining unexpired term (or remaining Employment Period) was three (3) years. In addition, if the Executive’s employment is
terminated by Executive absent a Change in Control and absent Good Reason, then Executive shall be entitled to the payments and benefits provided for under this Section 6 as if the Executive had resigned for Good Reason but with all relevant
time periods being computed with reference to the actual remaining unexpired term (or remaining Employment Period) rather than the fixed three (3) year period provided herein. 

7. Covenant Not to Compete. 
 (a) Executive hereby acknowledges and recognizes the highly competitive nature of the business of Tower and FNB and accordingly agrees that, during and for the applicable period set forth in
Section 7(c) hereof, Executive shall not: 
 (i) enter into or be engaged (other than by Tower, FNB or any
of their subsidiaries), directly or indirectly, either for his own account or as agent, consultant, employee, partner, officer, director, proprietor, investor (except as an investor owning less than 5% of the stock of a publicly owned company) or
otherwise of any person, firm, corporation or enterprise engaged in (1) the banking (including bank holding company) or financial services industry, or (2) any other activity in which Tower, FNB or any of their subsidiaries are engaged
during the term of Executive’s employment, in Chester County, Pennsylvania; 
 (ii) solicit, directly or
indirectly, current or former customers of Tower, FNB or any of their subsidiaries to divert their business from Tower, FNB or any of their subsidiaries; or 
 (iii) solicit, directly or indirectly, any person who is employed by Tower, FNB or any of their subsidiaries to leave the employ of Tower, FNB or any of their subsidiaries. 

(b) It is expressly understood and agreed that, although the parties consider the restrictions contained in Section 7(a) hereof
reasonable for the purpose of preserving for Tower, FNB and their subsidiaries their goodwill and other proprietary rights, if a final judicial determination is made by a court having jurisdiction that the time or territory or any other restriction
contained in this Section 7(a) hereof is an unreasonable or otherwise unenforceable restriction against Executive, the provisions of Section 7(a) hereof shall not be rendered void but shall be deemed amended to apply as to such maximum
time and territory and to such other extent as such court may judicially determine or indicate to be reasonable. 
 (c) The
provisions of this Section 7 shall be applicable commencing on the date of this Agreement and continuing for twelve (12) months after the effective date of the termination of Executive’s employment; provided, however,
that the provisions of this Section 7 shall be null and void in the event that Executive terminates this Agreement for “Good Reason” or Executive’s employment is involuntarily terminated by Tower or FNB without “Cause”
or following a Change of Control. Notwithstanding the above provisions, if the Executive violates the provisions of this Section 7 and Tower or FNB must seek enforcement of the provisions of Section 7 and is successful in enforcing the
provisions, either pursuant to a settlement agreement, or pursuant to court order, the covenant not to compete will remain in effect for one full year following the date of the settlement agreement or court order. 

(d) Executive hereby agrees that the provisions of this Section 7 are fully assignable by Tower and FNB to any successor. Executive
also acknowledges that the terms and conditions of this Section 7 will not be affected by the circumstances surrounding his termination of employment. 
 (e) The Executive acknowledges and agrees that any breach of the restrictions set forth in this Section 7 will result in irreparable injury to Tower and FNB for which it shall have no meaningful
remedy at law, and Tower and FNB shall be entitled to injunctive relief in order to enforce provisions hereof. Upon obtaining any such final and nonappealable injunction, Tower and FNB shall be entitled to pursue reimbursement from the Executive
and/or the Executive’s employer of attorney’s fees and costs reasonably incurred in obtaining such 

  
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final and nonappealable injunction. In addition, Tower and FNB shall be entitled to pursue reimbursement from the Executive and/or the Executive’s employer of costs reasonably incurred in
securing a qualified replacement for any employee enticed away from Tower and FNB by Executive. Further, Tower and FNB shall be entitled to set off against or obtain reimbursement from Executive of any payments owed or made to the Executive
hereunder. 
 8. Notice. For the purposes of this Agreement, notices and all other communications provided for in the
Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States certified mail, return receipt requested, postage prepaid, addressed as follows: 

 

			
	If to the Executive:	  	John A. Featherman, III
		  	P.O. Box 3087
		  	West Chester, PA 19381
	If to Tower or FNB:	  	Tower Bancorp, Inc.
		  	112 Market Street
		  	Harrisburg, PA 17101
		  	Attn: Carl D. Lundblad, General Counsel

 or to such other
address as any party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt. 
 9. Successors and Parties in Interest. 
 (a) This Agreement shall be
binding upon and shall inure to the benefit of FNB and Tower and their successors and assigns, including, without limitation, any corporation which acquires, directly or indirectly, by purchase, merger, consolidation or otherwise, all or
substantially all of the business or assets of FNB or Tower. Without limitation of the foregoing, FNB and Tower shall require any such successor, by agreement in form and substance satisfactory to Executive, expressly to assume and agree to perform
this Agreement in the same manner and to the same extent that it is required to be performed by FNB and Tower. Failure to obtain such assumption and agreement shall serve as Good Reason for termination under Section 2(c). 

(b) This Agreement is binding upon and shall insure to the benefit of Executive, his heirs and personal representatives. 

10. Mitigation and Setoff. 
 (a) Executive shall not be required to mitigate the amount of any payment or benefit provided for in Sections 5 or 6 above by seeking employment or otherwise, and FNB and Tower shall not be entitled to
setoff against the amount of any payment or benefit provided for in Sections 5 or 6 above by any amounts earned by Executive in other employment. 
 (b) FNB and Tower hereby waive any and all rights to setoff in respect to any claim, debt, obligation or other liability of any kind whatsoever, against any payment or benefit provided for in Sections 5
or 6 above. 
 11. Severability. If any provision of this Agreement is declared unenforceable for any reason, the
remaining provisions of this Agreement shall be unaffected thereby and shall remain in full force and effect. 
 12.
Amendment. This Agreement may be amended or cancelled only by mutual agreement of the parties in writing. 
 13.
Attorney’s Fees and Costs. If any action at law or in equity is necessary to enforce the Executive’s rights hereunder following a Change of Control of Tower, the Executive shall be entitled to recover all such attorney’s fees,
costs and disbursements reasonably incurred by him in connection with any such suit brought by him. 

  
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 14. Payment of Money Due Deceased Executive. In the event of Executive’s death,
any monies or benefits that may be due him from Tower or FNB under this Agreement as of the date of death or thereafter shall be paid to the person designated by him in writing for this purpose, or, in the absence of any such designation, to his
estate. 
 15. Limitation of Damages for Breach of Agreement. In the event of a breach of this Agreement by either Tower,
FNB or Executive, each hereby waives to the fullest extent permitted by law the right to assert any claim against the others for punitive or exemplary damages. 
 16. Law Governing. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania. In the event that any party shall institute any suit or other
legal proceeding, whether at law or in equity, arising from or relating to this Agreement, the courts of the Commonwealth of Pennsylvania shall have exclusive jurisdiction. 
 17. Entire Agreement. This Agreement supersedes any and all prior agreements, either oral or in writing, between the parties with respect to employment of Executive and/or payments after a Change
of Control, including but not limited to the 2008 Agreement, by and among Executive, First Chester and FNB, and this Agreement contains all of the covenants and agreements between the parties with respect to same. 

19. Rights under Other Plans. This Agreement is not intended to reduce, restrict or eliminate any benefit to which Executive may
otherwise be entitled at the time of his discharge or resignation under any employee benefit plan of Tower or FNB then in effect. 
 20. Independent Representation. The provisions of this Agreement and their legal effect have been fully explained to the parties by their respective, independent counsel. Each party acknowledges
that he/it has received independent legal advice and that each fully understands the facts and has been fully informed as to his/its legal rights and obligations. Each party accepts this Agreement as fair and equitable, and that it is being entered
into freely and voluntarily, after having received such advice and with such knowledge. 
 21. Unauthorized Disclosure.
During the term of his employment hereunder, or at any later time, the Executive shall not, without the written consent of the Board of Directors of Tower and FNB or a person authorized thereby (except as may be required pursuant to a subpoena or
other legal process), knowingly disclose to any person, other than an employee of Tower and FNB or a person to whom disclosure is reasonably necessary or appropriate in connection with the performance by the executive of his duties as an executive
of Tower and FNB, any material confidential information obtained by him while in the employ Tower and FNB with respect to any of Tower and FNB’s services, products, improvements, formulas, designs or styles, processes, customers, methods of
business or any business practices the disclosure of which could be or will be damaging to Tower and FNB; provided, however, that confidential information shall not include any information known generally to the public (other than as a result of
unauthorized disclosure by Executive or any person with the assistance, consent or direction of the Executive) or any information of a type not otherwise considered confidential by persons engaged in the same business or a business similar to that
conducted by Tower and FNB or any information that much be disclosed as required by law. 
 22. Waiver. No provision of
this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by Executive and an executive officer specifically designated by the Board of Directors of Tower. No waiver by
either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provisions of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time. 
 23. Assignment and Counterparts. This Agreement shall not
be assignable by any party, except by FNB and Tower to any successor in interest to its business. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original and all of which shall constitute one
and the same Agreement. 

  
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 24. Arbitration. Tower, FNB and Executive recognize that in the event a dispute
should arise between them concerning the interpretation or implementation of this Agreement, lengthy and expensive litigation will not afford a practical resolution of the issues within a reasonable period of time. Consequently, each party agrees
that all disputes, disagreements and questions of interpretation concerning this Agreement are to be submitted to resolution, in Harrisburg, Pennsylvania, to the American Arbitration Association (the “Association”) in accordance with the
Association’s National Rules for the Resolution of Employment Disputes or other applicable rules then in effect (“Rules’). Tower, FNB or Executive may initiate an arbitration proceeding at any time by giving notice to the other in
accordance with the Rules. Tower, FNB and Executive may, as a matter of right, mutually agree on the appointment of a particular arbitrator from the Association’s pool. The arbitrator shall not be bound by the rules of evidence and procedure of
the courts of the Commonwealth of Pennsylvania but shall be bound by the substantive law applicable to this Agreement. The decision of the arbitrator, absent fraud, duress, incompetence or gross and obvious error of act, shall be final and binding
upon the parties and shall be enforceable in courts of proper jurisdiction. Following written notice of a request for arbitration, Tower, FNB and Executive shall be entitled to an injunction restraining all further proceedings in any pending or
subsequently filed litigation concerning this Agreement, except as otherwise provided herein. 
 25. Headings. The
section headings of this Agreement are for convenience only and shall not control or affect the meaning or construction or limit the scope or intent of any of the provisions of this Agreement. 

26. 409A Safe Harbor. The parties hereto intend that any and all post-employment compensation under this Agreement satisfy the
requirements of Section 409A of the Internal Revenue Code of 1986, as amended, and any regulations or guidance promulgated thereunder (“Section 409A”) or an exception or exclusion therefrom to avoid the imposition of any accelerated
or additional taxes pursuant to Section 409A. Accordingly, notwithstanding anything in this Agreement to the contrary, in no event shall Tower or FNB be obligated to commence payment or distribution to the Executive of any amount that
constitutes deferred compensation within the meaning of Section 409A earlier than the earliest permissible date under Section 409A that such amount could be paid without any accelerated or additional taxes or interest being imposed under
Section 409A. Tower, FNB and the Executive agree that they will execute any and all amendments to this Agreement as they mutually agree in good faith may be necessary to ensure compliance with the distribution provisions of Section 409A
and to cause any and all amount due under this Agreement, the payment or distribution of which is delayed pursuant to Section 409A, to be paid or distributed in a single sum payment at the earliest permissible date under Section 409A.

 27. Specified Employee Status. Notwithstanding anything in this Agreement to the contrary, in the event Executive is
determined to be a Specified Employee, as that term is defined in Section 409A, payments to such Specified Employee under Sections 5 or 6, other than payments qualifying as short term deferrals or an exempt separation pay arrangement under
Section 409A, shall not begin earlier than the first day of the seventh month after the date of termination. For purposes of the foregoing, the date upon which a determination is made as to the Specified Employee status of the Executive, the
Identification Date (as defined in Section 409A) shall be December 31. 
 [SIGNATURE PAGE FOLLOWS] 

  
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 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first
above written. 
  

							
			
	ATTEST:	 		 	TOWER BANCORP, INC.
				
	 /s/ Carl D. Lundblad
	 		 	By:	 	 /s/ Andrew S. Samuel

	Secretary	 		 		 	Chief Executive Officer
			
	ATTEST:	 		 	FIRST NATIONAL BANK OF CHESTER COUNTY
				
	 /s/ Sheryl Vittitoe
	 		 	By:	 	 /s/ James M. Deitch

	Chief Financial Officer	 		 		 	Chief Operating Officer
			
	WITNESS:	 		 	EXECUTIVE
			
	 /s/ Sheryl Vittitoe
	 		 	 /s/ John A. Featherman

			
	ATTEST:	 		 	FIRST CHESTER COUNTY CORPORATION
				
	 /s/ Sheryl Vittitoe
	 		 	By:	 	 /s/ James M. Deitch

	Chief Financial Officer	 		 		 	Chief Operating Officer

  
 10 

 AMENDMENT OF EMPLOYMENT AGREEMENT 

THIS AMENDMENT dated as of September 1, 2010 (this “Amendment”) is by and among the parties hereto and amends that
certain Employment Agreement dated as of December 27, 2009 (the “Employment Agreement”) by and among JOHN A. FEATHERMAN, III (“Executive”), and FIRST NATIONAL BANK OF CHESTER COUNTY, a national banking association
having its principal office in West Chester, Pennsylvania (“FNB”), TOWER BANCORP, INC., a Pennsylvania corporation having its principal office in Harrisburg, Pennsylvania (“Tower”), and FIRST CHESTER COUNTY
CORPORATION, a Pennsylvania corporation having its principal office in West Chester, Pennsylvania (“First Chester”). 
 1. Capitalized terms used and not defined herein shall be as defined in the Employment Agreement. 
 2. By execution of this Amendment, Graystone Tower Bank, a wholly owned subsidiary of Tower which will be the successor by merger of FNB upon consummation of the merger of FNB with and into Graystone
Tower Bank, joins in and agrees to be bound by the Employment Agreement as amended by this Amendment. 
 3. Section 1(a) of the
Employment Agreement is hereby amended to read as follows: 
 (a) Tower and Graystone Tower Bank hereby agree to
employ Executive and Executive hereby agrees to serve as Chairman and Chief Executive Officer of the division of Graystone Tower Bank operating the former FNB branch offices and banking operations located in Chester, Delaware and Montgomery Counties
(the “FNB Market Areas”) and such additional branch offices and/or banking operations which may be acquired and/or opened in the FNB Market Areas or other contiguous markets (the “Division”) and as a vice chairman of Tower.
Executive shall report directly to the Chief Executive Officer of Tower. Executive’s ceasing to be Chairman and Chief Executive Officer of the Division as a result of the elimination of the Division after the 24-month period during which
Graystone Tower Bank is required to maintain the Division pursuant to Section 6.14(b) of the Merger Agreement as amended shall not constitute grounds for Executive to terminate his employment for Good Reason. 

4. The Employment Agreement and this Amendment shall become effective upon the effective date of the Merger. 

5. This Amendment may be executed in two or more counterparts, each of which shall be deemed an original and all of which shall
constitute one and the same Amendment. 
 [signatures follow on next page] 

  
 1 

 IN WITNESS WHEREOF, the parties hereto, intending to be legally bound, have executed
this Amendment as of the date first above written. 
  

							
	ATTEST:	 		 	TOWER BANCORP, INC.
				
	 /s/ Carl D. Lundblad
	 		 	By:	 	 /s/ Andrew S. Samuel

	Secretary	 		 		 	Chairman & CEO
			
	ATTEST:	 		 	GRAYSTONE TOWER BANK
				
	 /s/ Carl D. Lundblad
	 		 	By:	 	 /s/ Andrew S. Samuel

	Secretary	 		 		 	Chairman & CEO
			
	ATTEST:	 		 	FIRST NATIONAL BANK OF CHESTER COUNTY
				
	 /s/ J. Carol Hanson
	 		 	By:	 	 /s/ John B. Waldron

			
	WITNESS:	 		 	EXECUTIVE
			
	 /s/ Julia M. Ohrwaschel
	 		 	 /s/ John A. Featherman III

			
	ATTEST:	 		 	FIRST CHESTER COUNTY CORPORATION
				
	 /s/ J. Carol Hanson
	 		 	By:	 	 /s/ John B. Waldron

  
 2Seperation Benefits Agreement

 Exhibit 10.2 
 SEPARATION BENEFITS AGREEMENT 
 THIS SEPARATION BENEFITS AGREEMENT (the
“Agreement”) is made as of this 02 day of October, 2006, by and between FIRST NATIONAL BANK OF CHESTER COUNTY, a wholly-owned subsidiary of First Chester County Corporation and a national banking association with its principal offices
located at 9 North High Street, West Chester, Pennsylvania (hereinafter referred to as the “Bank”) and CLAY T. HENRY, an individual residing at 319 Vista Drive, Phoenixville, PA 19460 (hereinafter referred to as “Executive”).

 BACKGROUND 
 WHEREAS, the Bank desires to employ Executive as the Executive Vice President of Trust and Wealth Advisory Services of the Bank and to provide certain benefits to Executive in connection with such
employment; 
 WHEREAS, Executive is desirous of securing such employment and such benefits on the terms and conditions set
forth herein; and 
 WHEREAS, in consideration of the receipt of such employment and such benefits, Executive is willing to be
bound by certain non-compete and non-disclosure obligations as set forth herein; 
 NOW, THEREFORE, in consideration of the
premises and mutual covenants and agreements hereinafter set forth, the parties, intending to be legally bound hereby agree as follows: 
  

	 	1)	TERM OF AGREEMENT. 

This Agreement is effective as of the latest to occur of the following dates: (a) the date this Agreement is executed and delivered
by both Executive and the Bank, (b) the date on which Executive’s employment as officer commences, or (c) the date set forth above. This Agreement will continue in effect as long as Executive is actively employed by the Bank, unless
Executive and the Bank agree in writing to termination of this Agreement. 
  

	 	2)	TERMINATION COMPENSATION. 

 If Executive’s employment with the Bank is terminated without “Cause” (as defined in Section 6) at any time, Executive will receive the “Termination Benefits” (as defined in
Section 3). Executive will also receive the Termination Benefits if Executive terminates his or her employment for “Good Reason” (as defined in Section 5). 
 In order to receive the Termination Benefits, Executive must execute a general release and waiver of claims that Executive may have against the Bank, its directors, officers, employees or other affiliates
as may be requested by the Bank. 

  
 -1-

 The Termination Benefits will be paid to Executive under the terms and conditions hereof,
without regard to whether Executive looks for or obtains alternative employment following Executive’s termination of employment with the Bank. 
  

	 	3)	TERMINATION BENEFITS DEFINED. 

 For purposes of this Agreement, the term “Termination Benefits” will mean and include the following; 
  

	 	a)	For a period of one year from Executive’s termination (the “Benefit Period”), payment of Executive’s base salary on the same basis that Executive
was paid immediately prior to Executive’s termination; Payment of any bonus Executive would otherwise be eligible to receive for the year in which Executive’s termination occurs and for that portion of the following year which is included
in the Benefit Period, such bonus to be calculated and paid as provided below; and 

  

	 	b)	Continuation during the Benefit Period of all fringe benefits that Executive was receiving immediately prior to Executive’s termination, including, without
limitation, life, disability, accident and group health insurance benefits coverage for Executive and Executive’s immediate family (“Fringe Benefits”), such Fringe Benefits to be provided on substantially the same terms and conditions
as they were provided immediately prior to Executive’s termination. 

  

	 	c)	The bonus component of Executive’s Termination Benefits will equal the sum of (i) the bonus to which Executive would have been entitled for the year during
which Executive’s termination occurs (calculated after annualizing the Bank’s consolidated financial results through the date of termination if such bonus is based upon a percentage of profits) (the “Annual Amount”), and
(ii) an amount equal to the product of (x) the Annual Amount times (y) a fraction the numerator of which is the number of days in the year following termination which is included in the Benefit Period and the denominator of which is
365 (the “Prorated Amount”). Both the Annual Amount and the Prorated Amount will be paid to Executive not later than March 31st of the year following Executive’s termination. 

Notwithstanding the foregoing, if Executive terminates his or her employment for Good Reason, Executive’s Termination Benefits will
be based upon the Executive’s salary, bonus and benefits immediately prior to the event that gives rise to Executive’s right to receive Termination Benefits under this Agreement. 

The Bank does not intend to provide duplicative Fringe Benefits. Consequently, Fringe Benefits otherwise receivable pursuant to this
Section will be reduced or eliminated if and to the extent that Executive receives comparable Fringe Benefits from any other source (for example, another employer); provided, however, that Executive will have no obligation to seek, solicit or accept
employment from another employer in order to receive such benefits. 

  
 -2-

  

	 	4)	CHANGE OF CONTROL DEFINED. 

 For purposes of this Agreement, a “Change of Control” will be deemed to have occurred upon the earliest to occur of the following events: 

 

	 	a)	the date the shareholders of the Bank (or the Board of Directors, if shareholder action is not required) approve a plan or other arrangement pursuant to which the Bank
will be dissolved or liquidated; 

  

	 	b)	the date the shareholders of the Bank (or the Board of Directors, if shareholder action is not required) approve a definitive agreement to sell or otherwise dispose of
all or substantially all of the assets of the Bank; 

  

	 	c)	the date the shareholders of the Bank (or the Board of Directors, if shareholder action is not required) and the shareholders of the other constituent corporation (or
its board of directors if shareholder action is not required) have approved a definitive agreement to merge or consolidate the Bank with or into such other corporation, other than, in either case, a merger or consolidation of the Bank in which
holders of shares of the common stock of the Bank (the “Common Stock”) immediately prior to the merger or consolidation, will hold at least a majority of the ownership of common stock of the surviving corporation (and, if one class of
common stock is not the only class of voting securities entitled to vote on the election of directors of the surviving corporation, a majority of the voting power of the surviving corporation’s voting securities) immediately after the merger or
consolidation, which common stock (and, if applicable, voting securities) is to be held in the same proportion as such holders’ ownership of Common Stock immediately before the merger or consolidation; 

 

	 	d)	the date any entity, person or group, (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Securities and Exchange Act of 1934, as amended (the
“Exchange Act”)), other than the Bank or any of its subsidiaries or any employee benefit plan (or related trust) sponsored or maintained by the Bank or any of its subsidiaries, shall have become the beneficial owner of, or shall have
obtained voting control over, more than fifty percent (50%) of the outstanding shares of the Common Stock; or 

  

	 	e)	the first day after the date this Plan is adopted when directors are elected so that a majority of the Board of Directors shall have been members of the Board of
Directors for less than twenty-four (24) months, unless the nomination for election of each new director who was not a director at the beginning of such twenty-four (24) month period was approved by a vote of at least two-thirds of the
directors then still in office who were directors at the beginning of such period. 

  
 -3-

 Notwithstanding any provision herein to the contrary, the filing of a proceeding for the
reorganization of the Bank under Chapter 11 of the Federal Bankruptcy Code or any successor or other statute of similar import will not be deemed to be a Change of Control for the purpose of this Agreement. 

 

	 	5)	GOOD REASON DEFINED. 

 For purposes of this Agreement, the term “Good Reason” will mean and include the following situations, provided that such situation shall not have occurred following any circumstance for which
the Executive’s employment may otherwise have been terminated for Cause: 
  

	 	a)	any material adverse change in Executive’s status, responsibilities or Fringe Benefits; 

 

	 	b)	any failure to nominate or elect Executive as Executive Vice President of Trust and Wealth Advisory Services. 

 

	 	c)	causing or requiring Executive to report to anyone other than the President or Chairman of the Board of the Bank; 

 

	 	d)	assignment to Executive of duties materially inconsistent with Executive’s position as Executive Vice President of Trust and Wealth Advisory Services;

  

	 	e)	any reduction of Executive’s annual base salary or annual bonus (or, if applicable, a change in the formula for determining Executive’s annual bonus which
would have the effect of reducing Executive’s annual bonus as it would otherwise have been calculated immediately prior to the event that gives rise to Executives right to receive Termination Benefits as provided in this Agreement) or other
reduction in compensation or benefits, in any such event, having the effect of reducing Executive’s annual base salary plus annual bonus by more than 10%); or 

 

	 	f)	requiring Executive to be principally based at any office or location more than 50 miles from the current offices of the Bank in West Chester, Pennsylvania;

  

	 	g)	a Change of Control as defined in Section 4 of this Agreement. 

  

	 	6)	CAUSE DEFINED. 

For purposes of this Agreement, the term “Cause” will mean and include the following situations: 

 

	 	a)	Executive’s conviction by a court of competent jurisdiction of, or plea of guilty or nolo contendere to, any criminal offense involving dishonesty or breach of
trust or any felony or crime involving moral turpitude or violation of the Securities Act of 1933 or the Securities Exchange Act of 1934, or the actual incarceration of Executive; 

  
 -4-

  

	 	b)	Executive’s failure to perform the duties reasonably assigned to Executive by the Board of Directors of the Bank, without reasonable cause or excuse, which failure
or breach continues for more than ten days after written notice thereof is given to Executive; 

  

	 	c)	Executive’s willful failure to follow the good faith lawful instructions of the Board of Directors of the Bank with respect to the operations of the Bank and the
conduct of its officers; 

  

	 	d)	Executive’s intentional violation of the conditions of Executive’s employment; 

 

	 	e)	Executive’s dishonesty or gross negligence in the performance of his duties; 

 

	 	f)	Conduct on the part of the Executive that would bring discredit to the Bank if publicly disclosed; 

 

	 	g)	Executive’s breach of fiduciary duty involving personal profit or benefit, directly or indirectly, to Executive’s family, friends or affiliated entities;

  

	 	h)	Executive’s violation of any law, rule or regulation governing banks or bank officers or the recommendation or order issued by a bank regulatory authority that
Executive be removed from employment with the Bank; 

  

	 	i)	A material breach by Executive of the Bank’s Code of Conduct; 

  

	 	j)	Executive’s unlawful discrimination, including harassment, against the Bank’s employees, customers, business associates, contractors or visitors;

  

	 	k)	Any final removal or prohibition order to which Executive is subject by a federal banking agency pursuant to Section 8(c) of the Federal Deposit Insurance Act;

  

	 	1)	Any act of fraud or misappropriation by Executive; or 

  

	 	m)	Intentional misrepresentation of a material fact, or intentional omission of information necessary to make the information supplied not materially misleading in any
application or other information provided from time to time by the Executive to the Bank or any director, officer of other representative of the Bank in connection with the Executive’s employment with the Bank and performance of
Executive’s duties as an employee of the Bank. 

  
 -5-

 This Agreement and Executive’s employment shall also terminate upon Executive’s
death or disability which renders Executive mentally or physically incapable of performing all of the essential functions of Executive’s responsibilities as Executive Vice President of Trust and Wealth Advisory Services, taking into account any
reasonable accommodation required by law, and such termination shall be deemed to be a termination by the Bank with Cause. 

Nothing in this Agreement shall be deemed to restrict the Bank’s ability to terminate Executive’s employment at any time in the
Bank’s sole discretion, and such employment shall be “at will”. 
  

	 	7)	CEILING ON BENEFITS. 

 Under the “golden parachute” rules in the Internal Revenue Code (the “Code”) Executive will be subject to a 20% excise tax (over and above regular income tax) on any “excess
parachute payment” that Executive receives following a Change in Control, and the Bank will not be permitted to deduct any such excess parachute payment. Very generally, compensation paid to Executive that is contingent upon a Change in Control
will be considered a “parachute payment” if the present value of such consideration equals or exceeds three times Executive’s average annual compensation from the Bank for the five years prior to the Change in Control. If payments are
considered “parachute payments,” then all such payments to Executive in excess of Executive’s base annual compensation will be considered “excess parachute payments” and will be subject to the 20% excise tax imposed under
Section 4999 of the Code. 
 For example, if Executive’s base annual compensation was $100,000, Executive could
receive $299,000 following a Change in Control without payment of any excise tax. If Executive received $301,000 in connection with a Change in Control, however, the entire $301,000 would be considered a parachute payment and $201,000 of this amount
would be considered an excess parachute payment subject to excise tax. 
 In order to avoid this excise tax and the related
adverse tax consequences for the Bank, by signing this Agreement, Executive agrees that the Termination Benefits payable to Executive under this Agreement will in no event exceed the maximum amount that can be paid to Executive without causing any
portion of the amounts paid or payable to Executive by the Bank following a Change in Control, whether under this Agreement or otherwise, to be considered an “excess parachute payment” within the meaning of Section 280G(b) of the
Code. 
 If the Bank believes that these rules will result in a reduction of the payments to which Executive is entitled under
this Agreement, it will so notify Executive within 60 days following delivery of the “Notice of Termination” described in Section 8. If Executive wishes to have such determination reviewed, Executive may, within 30 days of the date
Executive is notified of a reduction of payments, ask that the Bank retain, at its expense, legal counsel, certified public accountants, and/or a firm of recognized executive compensation consultants (an “Outside Expert”) to provide an
opinion concerning whether, and to what extent, Executive’s Termination Benefits must be reduced so that no amount payable to Executive by the Bank (whether under this Agreement or otherwise) will be considered an excess parachute payment.

  
 -6-

 The Outside Expert will be as mutually agreed by Executive and the Bank, provided that if we
are not able to reach a mutual agreement the Bank will select an Outside Expert, Executive will select an Outside Expert, and the two Outside Experts will select a third Outside Expert to provide the opinion required under this Section. The
determination of the Outside Expert will be final and binding, subject to any contrary determination made by the Internal Revenue Service. 
 If the Bank believes that Executive’s Termination Benefits will exceed the limitation contained in this Section, it will nonetheless make payments to Executive, at the times stated above, in the
maximum amount that it believes may be paid without exceeding such limitation. The balance, if any, will then be paid after the opinion of the Outside Expert has been received. 

If the amount paid to Executive by the Bank following a Change in Control is ultimately determined, pursuant to the opinion of the
Outside Expert or by the Internal Revenue Service, to have exceeded the limitation contained in this Section, the excess will be treated as a loan to Executive by the Bank and will be repayable on the 90th day following demand by the Bank, together
with interest at the “applicable federal rate” provided in Section 1274(d) of the Code. 
 In the event that the
provisions of Sections 280G and 4999 of the Code are repealed without successor provisions, this Section will be of no further force or effect. 
  

	 	8)	TERMINATION NOTICE AND PROCEDURE. 

 Any termination by the Bank or Executive of Executive’s employment will be communicated by written Notice of Termination to Executive, if such Notice of Termination is delivered by the Bank, and to
the Bank, if such Notice of Termination is delivered by Executive, all in accordance with the following procedures: 
 The
Notice of Termination will indicate the specific termination provision in this Agreement relied upon, if applicable, and will set forth in reasonable detail the facts and circumstances alleged to provide a basis for such termination. 

Any Notice of Termination by the Bank will be in writing signed by the Chairman of the Board of the Bank or the President of the Bank.

 If the Bank furnishes Executive with a Notice of Termination, or if Executive furnishes the Bank with a Notice of
Termination, then the date of Executive’s termination will be the date such Notice of Termination is deemed given pursuant to Section 14 of this Agreement. 

  
 -7-

  

	 	9)	DEFERRAL OF PAYMENTS. 

 To the extent that any payment under this Agreement, when combined with all other payments received during the year that are subject to the limitations on deductibility under Section 162(m) of the
Code, exceeds the limitations on deductibility under Section 162(m) of the Code, such payment will, in the discretion of the Bank, be deferred to the next succeeding calendar year. Such deferred amounts will be paid no later than the 60th day
after the end of such next succeeding calendar year, provided that such payment, when combined with any other payments subject to the Section 162(m) limitations received during the year, does not exceed the limitations on deductibility under
Section 162(m) of the Code. 
  

	 	10)	COMPETITION. 

During the Term of this Agreement and for a period of one (1) year following termination thereof, for any reason whatsoever,
Executive shall not, directly or indirectly: (a) be employed by any other bank or similar financial institution doing business in Chester County, Pennsylvania; (b) on behalf of a competing bank or similar financial institution, solicit,
engage in, or accept business or perform any services for any organization or individual that at any time during the one (1) year ending with Executive’s termination was a Bank client, customer or affiliate, or a source of business with
which or who Executive dealt or had any contact during the term of Executive’s employment with the Bank; (c) solicit any employee of the Bank for the purpose of inducing such employee to resign from the Bank; nor (d) induce or assist
others in engaging in the activities described in subparagraphs (a) through (c) above. Notwithstanding the foregoing if Executive’s employment is terminated within two years following a Change of Control (as defined in
Section 4), the provisions of clause (a) of the prior sentence shall be null and void and Executive shall be entitled to be employed by any bank or financial institution doing business in Chester County, Pennsylvania or in any other
location. 
  

	 	11)	DISCLOSURE OF CONFIDENTIAL INFORMATION. 

 During the period during which Executive is employed by the Bank and following the voluntary or involuntary termination of Executive’s employment with the Bank for any reason whatsoever, Executive
shall not use for any non-Bank purpose or disclose to any person or entity any confidential information acquired during the course of employment with the Bank. Executive shall not, directly or indirectly, copy, take, or remove from the Bank’s
premises, any of the Bank’s books, records, customer lists, or any other documents or materials. The term “confidential information” as used in this Agreement includes, but is not limited to, records, lists, and knowledge of the
Bank’s customers, suppliers, methods of operation, processes, trade secrets, methods of determination of prices and rates, financial condition, as the same may exist from time to time. 

 

	 	12)	SUCCESSORS. 

 The
Bank will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Bank or any of its subsidiaries to expressly assume and agree to perform
this Agreement in the same manner and to the same extent that the Bank would be required to perform it if no such succession had taken place. Failure of the Bank to obtain such assumption and agreement prior to the effectiveness of any such
succession will be a breach of this Agreement and will entitle Executive to compensation in the same amount and on the same terms to which Executive would be entitled hereunder if Executive terminates his or her employment for Good Reason, except
that for purposes of implementing the foregoing, the date on which any such succession becomes effective will be deemed the date of Executives termination. As used in this agreement “the Bank” will mean “the Bank” as hereinbefore
defined and any successor to its business and/or assets which assumes and agrees to perform this Agreement by operation of law or otherwise. 

  
 -8-

  

	 	13)	BINDING AGREEMENT. 

This Agreement will inure to the benefit of and be enforceable by Executive and Executive’s personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and legatees. If Executive should die while any amount would still be payable to Executive hereunder had Executive continued to live, all such amounts, unless otherwise provided
herein, will be paid in accordance with the terms of this Agreement to Executive’s devisee, legatee or other designee or, if there is no such designee, to Executive’s estate. 

 

	 	14)	NOTICES. 

 For
purposes of this Agreement, notices and all other communications provided for in this Agreement will be in writing and will be deemed to have been duly given when personally delivered or mailed by United States certified or registered mail, return
receipt requested, postage prepaid, addressed to Executive at the last address Executive has filed in writing with the Bank or, in the case of the Bank, at its main office, attention of the Chairman of the Board of Directors, or to such other
address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address will be effective only upon receipt. 
  

	 	15)	MISCELLANEOUS. 

 No
provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by Executive and the Chairman of the Board of the Bank. No waiver by either party hereto at any time
of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party will be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time. No agreement or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not expressly set forth in this Agreement. The validity, interpretation,
construction and performance of this Agreement will be governed by the laws of the State of Pennsylvania without regard to its conflicts of law principles. All references to sections of the Exchange Act or the Code will be deemed also to refer to
any successor provisions to such sections. Any payments provided for hereunder will be paid net of any applicable withholding required under federal, state or local law. The obligations of the Bank that arise prior to the expiration of this
Agreement will survive the expiration of the term of this Agreement. 

  
 -9-

  

	 	16)	VALIDITY. 

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

 

	 	17)	COUNTERPARTS. 

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

	 	18)	EXPENSES. 

 If a
good faith dispute arises with respect to the enforcement of Executive’s rights under this Agreement or if any arbitration or legal proceeding is brought in good faith to enforce or interpret any provision contained herein, or to recover
damages for breach hereof, each party shall be responsible for his, her or its own attorneys’ fees, costs and disbursements incurred as a result of such dispute or legal proceeding. 

 

	 	19)	PAYMENT OBLIGATIONS ABSOLUTE. 

 The Bank’s obligation to pay Executive the Termination Benefits in accordance with the provisions herein will be absolute and unconditional and will not be affected by any circumstances; provided,
however, that the Bank may apply amounts payable under this Agreement to any debts owed to the Bank by Executive on the date of Executive’s termination. All amounts payable by the Bank in accordance with this Agreement will be paid without
notice or demand. If the Bank has paid Executive more than the amount to which Executive is entitled under this Agreement, the Bank will have the right to recover all or any part of such overpayment from Executive or from whomsoever has received
such amount. 
 20) SPECIFIC PERFORMANCE. Executive acknowledges and agrees that the Bank’s remedies at law
for a breach of any of the provisions of Section 10 or Section 11 would be inadequate and the Bank would suffer irreparable damages as a result of such breach. In recognition of this fact, Executive agrees that, in the event of such a
breach, in addition to any remedies at law, the Bank, without posting any bond, shall be entitled to cease making any payments or providing any benefit otherwise required by this Agreement and obtain equitable relief in the form of specific
performance, temporary restraining order, temporary or permanent injunction or any other equitable remedy which may then be available; provided, however, that if the Bank does not institute and prevail in an action to obtain such an equitable
remedy, the Bank shall re-pay and otherwise reimburse Executive for the payments and benefits which the Bank ceased making or providing, and interest on such payments at the Bank’s prime rate. 

 

	 	21)	ENTIRE AGREEMENT. 

This Agreement sets forth the entire agreement between Executive and the Bank concerning the subject matter discussed in this Agreement
and supersedes all prior agreements, promises, covenants, arrangements, communications, representations, or warranties, whether written or oral, by any officer, employee or representative of the Bank. Any prior agreements or understandings with
respect to the subject matter set forth in this Agreement are hereby terminated and canceled. 

  
 -10-

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first written above, 
  

			
	FIRST NATIONAL BANK OF CHESTER COUNTY
		
	By:	 	 /s/ Deborah R. Pierce

		 	Deborah R. Pierce
		 	Executive Vice President
		 	Human Resources and Administration
	
	 /s/ Clay T. Henry

	CLAY T. HENRY

  
 -11-

 AMENDMENT TO EXECUTIVE AGREEMENT 

THIS AMENDMENT (the “Amendment”) is made as of December 24, 2008, by and between FIRST NATIONAL BANK OF CHESTER COUNTY, a
wholly-owned subsidiary of First Chester County Corporation and a national banking association (individually, the “Corporation” and “Bank,” respectively, and collectively, “FNB”) and Clay T. Henry
(“Executive”). 
 BACKGROUND 
 WHEREAS, FNB and Executive entered into an agreement, dated as of October 2, 2006 (the “Executive Agreement”) under which Executive is entitled to certain payments and benefits in
connection with Executive’s termination of employment from FNB in certain circumstances (“Severance”); 

WHEREAS, FNB and Executive have determined it is in their mutual best interest to modify the Severance available under the Executive
Agreement in order for FNB to qualify for participation in the Capital Purchase Program established by the U. S. Treasury pursuant to the Emergency Economic Stabilization Act of 2008; 

WHEREAS, it is in the best interests of Executive and FNB to amend the Executive Agreement to comply with final regulations issued by the
Internal Revenue Service under Section 409A of the Internal Revenue Code of 1986, as amended, (the “Code”) in order for Executive to avoid the adverse tax consequences that would arise from a failure to comply with Code
Section 409A, including the accelerated recognition of income by Executive and an imposition of an additional 20% excise tax on Severance payable to Executive under the Executive Agreement; 

NOW, THEREFORE, in consideration of the premises and mutual covenants and agreements hereinafter set forth, the parties, intending to be
legally bound hereby amend the Executive Agreement by eliminating Section 9 in its entirety and replacing it with the following new Section 9: 
  

	 	9.	Restrictions and Limitations 

 (a) In General Notwithstanding any provision of this Agreement or any other compensation arrangement to the contrary, in the event that FNB participates in the Capital Purchase Program established
by the U. S. Treasury pursuant to the Emergency Economic Stabilization Act of 2008 (the “CPP”), Executive agrees that the benefits and payments otherwise due Executive under this Agreement and other compensation arrangements with FNB shall
be restricted, modified or eliminated as is necessary to satisfy the requirements of 31 CFR Part 30 or such other guidance or regulations promulgated by the U. S. Treasury under the CPP (“CPP Regulations”), including but not limited to the
limitations and restrictions described in Section 16(b) and (e). 

 (b) Limitation on Severance If Executive is or becomes a “senior executive
officer” (SEO), within the meaning of the CPP Regulations, Executive agrees that during the period the U. S. Treasury holds an equity or debt position of FNB acquired under the CPP, the present value of all benefits and payments
otherwise due Executive under this Agreement and all other compensation arrangements with FNB on account of Executive’s “applicable severance from employment,” as defined under the CPP Regulations, shall be limited to 2.99 times
Executive’s “base amount,” as defined under the CPP Regulations. 
 (c) Recovery of Certain Payments If
Executive is or becomes an SEO, Executive agrees that any payments made to Executive during the period the U. S. Treasury holds an equity or debt position of FNB acquired under the CPP under this Agreement or other bonus or incentive compensation
arrangements with FNB, shall be subject to recovery by FNB at anytime to the extent such payments were based on materially inaccurate financial statements or any other materially inaccurate performance metric. 

(d) Compliance with Code Section 409A For purposes of this Agreement, Executive’s termination of employment shall mean
Executive’s “separation from service” as defined under Code Section 409A. Each payment under this Agreement that is determined to be subject to Section 409A shall be treated as a separate payment. In no event may Executive,
directly or indirectly, designate the calendar year of any payment to be made under this Agreement. Notwithstanding any provision of this Agreement to the contrary, if Executive is a “specified employee” (as defined in Section 409A of
the Code) as of his “separation from service” (as defined in Section 409A of the Code), then the payment of any amounts payable hereunder that are subject to Section 409A of the Code shall be postponed in compliance with
Section 409A (without any reduction in such payments ultimately paid or provided to Executive) until the first payroll date that occurs after the date that is six (6) months following Executive’s “separation from service.”
Any such postponed payments shall be paid in a lump sum to Executive on the first payroll date that occurs after the date that is six (6) months following Executive’s “separation from service.” If Executive dies during the
postponement period prior to the payment of the postponed amount, the amounts withheld on account of Section 409A shall be paid to Executive’s estate within sixty (60) days after the date of his death. 

 IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and year
first written above. 
  

			
	FIRST NATIONAL BANK OF CHESTER COUNTY
		
	By:	 	 /s/ Kevin C. Quinn

		 	      Kevin C. Quinn, President
	
	EXECUTIVE
	
	 /s/ Clay T. Henry

	Clay T. Henry

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