Document:

Exhibit 10.2

    Exhibit
      10.2

     

    Form
      of Letter Agreement For Directors

     

    ,
      2006

    Community
      Banks, Inc.

    777
      East
      Park Drive

    Harrisburg,
      PA 17111

    

    Ladies
      and Gentlemen:

     

    Community
      Banks, Inc. (“CMTY”) and BUCS Financial Corp (“BFC”) are considering entering
      into an Agreement (the “Merger Agreement”), pursuant to which, and subject to
      the terms and conditions set forth therein: (a) CMTY will acquire BFC by a
      merger of BFC with and into CMTY; (b) stockholders of BFC will receive
      shares of CMTY common stock and/or cash in exchange for their shares of BFC
      common stock owned on the closing date; and (c) option holders of BFC will
      receive cash in exchange for options exercisable for common stock of BFC
      outstanding on the closing date (the foregoing, collectively, the
“Transactions”).

     

    I
      have
      been advised that I may be deemed to be an “affiliate” of BFC for purposes of
      certain rules issued by the Securities and Exchange Commission (the “SEC”) under
      the Securities Act of 1933.

     

    I
      understand that CMTY is requiring, as a condition to its execution and delivery
      to BFC of the Agreement, that I execute and deliver to CMTY this Letter
      Agreement. Intending to be legally bound hereby, I irrevocably agree and
      represent as follows:

     

    1.
      I
      agree to vote or cause to be voted for approval of the Merger Agreement all
      shares of BFC common stock over which I exercise sole or shared voting power
      (other than shares held in a fiduciary capacity) as of the record date of the
      BFC shareholder meeting at which the Merger Agreement will be presented for
      approval.

     

    2.
      Through the conclusion of the Transactions, I agree not to offer, sell,
      exercise, transfer or otherwise dispose of, or to permit the offer, sale,
      transfer or other disposition of, any shares of BFC common stock over which
      I
      exercise sole or shared voting power (other than shares held in a fiduciary
      capacity) or any options that I hold to acquire shares of BFC common stock.
      

     

    3.
      I have
      sole or shared voting power (other than shares held in a fiduciary capacity)
      over the number of shares of BFC common stock, and hold stock options for the
      number of shares of BFC common stock, if any, set forth below opposite my
      signature line. CMTY recognizes that with respect to any such shares which
      have
      been pledged to a third party (which are specifically identified below), I
      will
      not be able to control the voting or disposition of such shares in the event
      of
      a default.

     

    4.
      I
      agree not to offer, sell, transfer or otherwise dispose of any shares of CMTY
      common stock received pursuant to the Transactions, except:

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    (a) at
      such time as a registration statement under the Securities Act of 1933, as
      amended (“Securities Act”), covering sales of such CMTY common stock is
      effective and a prospectus is made available under the Securities
      Act;

     

    (b) within
      the limits, and in accordance with the applicable provisions of, Rule 145
      under the Securities Act (“Rule 145”); or

     

    (c) in
      a transaction which, in an opinion of counsel satisfactory to CMTY or as
      described in a “no-action” or interpretive letter from the staff of the SEC (a
“No Action Letter”), is not required to be registered under the Securities
      Act;

     

    and
      I
      acknowledge and agree that CMTY is under no obligation to register the sale,
      transfer or other disposition of CMTY common stock by me or on my behalf, or
      to
      take any other action necessary to make an exemption from registration
      available.

     

    5.
      CMTY
      shall take all steps necessary to ensure that CMTY is in compliance with all
      those requirements of Rule 145 and Rule 144 with which CMTY must comply in
      order for the resale provisions of Rule 145(d) to be available to
      me.

     

    6.
      I
      agree that CMTY shall not be bound by any attempted sale of any shares of CMTY
      common stock acquired by me pursuant to the Transactions, and CMTY’s transfer
      agent shall be given appropriate stop transfer orders and shall not be required
      to register any such attempted sale, unless the sale has been effected in
      compliance with the terms of this Letter Agreement; and I further agree that
      the
      certificate representing shares of CMTY common stock acquired by me pursuant
      to
      the Transactions by me may be endorsed with a restrictive legend consistent
      with
      the terms of this Letter Agreement, stating in substance as
      follows:

     

    “THE
      SHARES REPRESENTED BY THIS CERTIFICATE WERE ISSUED IN A TRANSACTION TO WHICH
      RULE 145 APPLIES AND MAY ONLY BE TRANSFERRED (A) IN CONFORMITY WITH RULE
      145(d), OR (B) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR (C) IN ACCORDANCE WITH A WRITTEN
      OPINION OF COUNSEL, REASONABLY ACCEPTABLE TO THE ISSUER IN FORM AND SUBSTANCE,
      THAT SUCH TRANSFER IS EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT OF
      1933,
      AS AMENDED.”

     

    The
      undersigned understands and hereby further acknowledges that the legend set
      forth above will be removed from any such certificate (by delivery of a
      substitute certificate without such legend) and CMTY will instruct its transfer
      agent to remove such legend from any such certificate, if the undersigned
      delivers to CMTY (i) satisfactory written evidence that the shares of CMTY
      common stock represented by any such certificate have been sold in compliance
      with Rule 145(d) (as such rule may be hereafter amended) (in which case, the
      substitute certificate will be issued in the name of the transferee), (ii)
      a No
      Action Letter, or (iii) an opinion of counsel, in form and substance
      reasonably satisfactory to CMTY, to the effect that public sale of shares
      represented by such certificate by the holder thereof is no longer subject
      to
      the restrictions imposed by Rule 145.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    7.
      I
      agree not to engage in any Competition with CMTY or any Affiliate of CMTY for
      a
      period of one (1) year after the later to occur of the Effective Date or my
      ceasing to be a member of the advisory board for the Metropolitan Baltimore
      area. For purposes of this Letter Agreement, “Competition” means becoming an
      employee, a director, an advisory director, a founder or a shareholder or other
      equity holder (other than acquisitions of not more than one percent (1%) of
      the
      outstanding capital stock of, or a similar equity interest in a corporation
      or
      other entity that is listed on a national securities exchange or traded in
      the
      over-the-counter market) of any business organization that is doing business
      or
      intends to do business in the states of Maryland or Pennsylvania and that is
      engaged or intends to engage in the provision of financial services to the
      public, including but not necessarily limited to commercial banks, savings
      associations, trust companies and credit unions, but not including the provision
      of pension consulting services or investment banking services in which I am
      involved as of the date of this Letter Agreement. 

     

    8.
      I
      represent that I have the capacity to enter into this Letter Agreement and
      that
      it is a valid and binding obligation enforceable against me in accordance with
      its terms, subject to bankruptcy, insolvency and other laws affecting creditors’
rights and general equitable principles. 

     

    I
      am
      signing this Letter Agreement in my capacity as a shareholder of BFC and not
      in
      any other capacity (including as a director or Executive). This Letter Agreement
      shall be effective upon acceptance by CMTY. 

     

    Execution
      of this Agreement by the undersigned is not an admission by the undersigned
      that
      he or she is an “affiliate” for purposes of the Rule 145 of the Securities
      Act.

     

    This
      Letter Agreement shall terminate concurrently with, and automatically upon,
      any
      termination of the Merger Agreement in accordance with its terms, except that
      any such termination shall be without prejudice to CMTY’s rights arising out of
      any willful breach of any covenant or representation contained
      herein.

    

      
        	 	 	
                Very
                  truly yours,

              
	 	 	 
	 	 	 
	 	 	 
	
                Witness

              	 	
                Name:

              

      

      

      
        	
                Number
                  of shares held:

              	 	 	 	 
	
                Sole
                  voting power: 

              	
                _______

              	 	
                Shared
                  voting power:

              	
                _______

              
	 	 	 	 	 
	
                Number
                  of pledged

              	 	 	 	 
	
                shares:
                  

              	
                _______

              	 	 	 

      

    

     

    Accepted:

    COMMUNITY
      BANKS, INC.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    By:__________________________________________      

    Name:
      Eddie L. Dunklebarger, Chairman, President and CEO

     

     

    4Exhibit 10.3

     

     

    Exhibit
      10.3

     

    Form
      of Letter Agreement for Executives

     

    ,
      2006

    Community
      Banks, Inc.

    777
      East
      Park Drive

    Harrisburg,
      PA 17111

    

    Ladies
      and Gentlemen:

     

    Community
      Banks, Inc. (“CMTY”) and BUCS Financial Corp (“BFC”) are considering entering
      into an Agreement (the “Merger Agreement”), pursuant to which, and subject to
      the terms and conditions set forth therein: (a) CMTY will acquire BFC by a
      merger of BFC with and into CMTY; (b) stockholders of BFC will receive
      shares of CMTY common stock and/or cash in exchange for their shares of BFC
      common stock owned on the closing date; and (c) option holders of BFC will
      receive cash in exchange for options exercisable for common stock of BFC
      outstanding on the closing date (the foregoing, collectively, the
“Transactions”).

     

    I
      have
      been advised that I may be deemed to be an “affiliate” of BFC for purposes of
      certain rules issued by the Securities and Exchange Commission (the “SEC”) under
      the Securities Act of 1933.

     

    I
      understand that CMTY is requiring, as a condition to its execution and delivery
      to BFC of the Agreement, that I execute and deliver to CMTY this Letter
      Agreement. Intending to be legally bound hereby, I irrevocably agree and
      represent as follows:

     

    1.
      I
      agree to vote or cause to be voted for approval of the Merger Agreement all
      shares of BFC common stock over which I exercise sole or shared voting power
      (other than shares held in a fiduciary capacity) as of the record date of the
      BFC shareholder meeting at which the Merger Agreement will be presented for
      approval.

     

    2.
      Through the conclusion of the Transactions, I agree not to offer, sell,
      exercise, transfer or otherwise dispose of, or to permit the offer, sale,
      transfer or other disposition of, any shares of BFC common stock over which
      I
      exercise sole or shared voting power (other than shares held in a fiduciary
      capacity) or any options that I hold to acquire shares of BFC common stock.
      

     

    3.
      I have
      sole or shared voting power (other than shares held in a fiduciary capacity)
      over the number of shares of BFC common stock, and hold stock options for the
      number of shares of BFC common stock, if any, set forth below opposite my
      signature line. CMTY recognizes that with respect to any such shares which
      have
      been pledged to a third party (which are specifically identified below), I
      will
      not be able to control the voting or disposition of such shares in the event
      of
      a default.

     

    4.
      I
      agree not to offer, sell, transfer or otherwise dispose of any shares of CMTY
      common stock received pursuant to the Transactions, except:

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    (a) at
      such time as a registration statement under the Securities Act of 1933, as
      amended (“Securities Act”), covering sales of such CMTY common stock is
      effective and a prospectus is made available under the Securities
      Act;

     

    (b) within
      the limits, and in accordance with the applicable provisions of, Rule 145
      under the Securities Act (“Rule 145”); or

     

    (c) in
      a transaction which, in an opinion of counsel satisfactory to CMTY or as
      described in a “no-action” or interpretive letter from the staff of the SEC (a
“No Action Letter”), is not required to be registered under the Securities
      Act;

     

    and
      I
      acknowledge and agree that CMTY is under no obligation to register the sale,
      transfer or other disposition of CMTY common stock by me or on my behalf, or
      to
      take any other action necessary to make an exemption from registration
      available.

     

    5.
      CMTY
      shall take all steps necessary to ensure that CMTY is in compliance with all
      those requirements of Rule 145 and Rule 144 with which CMTY must comply in
      order for the resale provisions of Rule 145(d) to be available to
      me.

     

    6.
      I
      agree that CMTY shall not be bound by any attempted sale of any shares of CMTY
      common stock acquired by me pursuant to the Transactions, and CMTY’s transfer
      agent shall be given appropriate stop transfer orders and shall not be required
      to register any such attempted sale, unless the sale has been effected in
      compliance with the terms of this Letter Agreement; and I further agree that
      the
      certificate representing shares of CMTY common stock acquired by me pursuant
      to
      the Transactions by me may be endorsed with a restrictive legend consistent
      with
      the terms of this Letter Agreement, stating in substance as
      follows:

     

    “THE
      SHARES REPRESENTED BY THIS CERTIFICATE WERE ISSUED IN A TRANSACTION TO WHICH
      RULE 145 APPLIES AND MAY ONLY BE TRANSFERRED (A) IN CONFORMITY WITH RULE
      145(d), OR (B) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR (C) IN ACCORDANCE WITH A WRITTEN
      OPINION OF COUNSEL, REASONABLY ACCEPTABLE TO THE ISSUER IN FORM AND SUBSTANCE,
      THAT SUCH TRANSFER IS EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT OF
      1933,
      AS AMENDED.”

     

    The
      undersigned understands and hereby further acknowledges that the legend set
      forth above will be removed from any such certificate (by delivery of a
      substitute certificate without such legend) and CMTY will instruct its transfer
      agent to remove such legend from any such certificate, if the undersigned
      delivers to CMTY (i) satisfactory written evidence that the shares of CMTY
      common stock represented by any such certificate have been sold in compliance
      with Rule 145(d) (as such rule may be hereafter amended) (in which case, the
      substitute certificate will be issued in the name of the transferee), (ii)
      a No
      Action Letter, or (iii) an opinion of counsel, in form and substance
      reasonably satisfactory to CMTY, to the effect that public sale of shares
      represented by such certificate by the holder thereof is no longer subject
      to
      the restrictions imposed by Rule 145.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    7.
      I
      represent that I have the capacity to enter into this Letter Agreement and
      that
      it is a valid and binding obligation enforceable against me in accordance with
      its terms, subject to bankruptcy, insolvency and other laws affecting creditors’
rights and general equitable principles. 

     

    I
      am
      signing this Letter Agreement in my capacity as a shareholder of BFC and not
      in
      any other capacity (including as a director or Executive). This Letter Agreement
      shall be effective upon acceptance by CMTY. 

     

    Execution
      of this Agreement by the undersigned is not an admission by the undersigned
      that
      he or she is an “affiliate” for purposes of the Rule 145 of the Securities
      Act.

     

    This
      Letter Agreement shall terminate concurrently with, and automatically upon,
      any
      termination of the Merger Agreement in accordance with its terms, except that
      any such termination shall be without prejudice to CMTY’s rights arising out of
      any willful breach of any covenant or representation contained
      herein.

    

    
      	 	 	
              Very
                truly yours,

            
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	
              Name:

            
	 	 	 
	
              Witness

            	 	 

    

    

    
      	
              Number
                of shares held:

            	 	 	 	 
	
              Sole
                voting power: 

            	
              _______

            	 	
              Shared
                voting power:

            	
              _______

            
	 	 	 	 	 
	
              Number
                of pledged

            	 	 	 	 
	
              shares:
                

            	
              _______

            	 	 	 

    

     

     

    

    Accepted:

    COMMUNITY
      BANKS, INC.

    

    

    By:       

    Name:
      Eddie L. Dunklebarger, Chairman, President and CEO

     

    3

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