Document:

EX-10.11

AMENDMENT NUMBER 1

to the

EMPLOYMENT AGREEMENT

Between

KNBT BANCORP, INC.,

KEYSTONE NAZARETH BANK & TRUST COMPANY,

And

EUGENE T. SOBOL

WHEREAS, in connection with the entering into of the Agreement and Plan of Merger between
Keystone Savings Bank (now known as Keystone Nazareth Bank & Trust Company) (the ”Bank”) and First
Colonial Group, Inc. (“First Colonial”) (the “Merger Agreement”), the Bank and Eugene T. Sobol (the
“Executive”) entered into an Employment Agreement dated March 5, 2003 (referred to hereinafter as
the “Agreement”);

WHEREAS, in accordance with the terms of Section 29 of the Agreement and in connection with
the consummation of the transactions contemplated by the Merger Agreement, KNBT Bancorp, Inc., the
parent holding company of the Bank (the Company”), became a party to the Agreement (the Bank and
the Company are hereinafter referred to as the “Employers”);

WHEREAS, under the terms of the Agreement, the term “Effective Date” was defined as the
effective date of the merger of the Company and First Colonial (the “Merger”);

WHEREAS, the Effective Date of the Merger was October 31, 2003; and

WHEREAS, the Boards of Directors of the Employers and Executive desire to amend the Agreement
to reflect certain mutually agreed upon revisions.

NOW, THEREFORE, in consideration of the mutual covenants herein set forth, the Employers and
Executive do hereby agree to amend the Agreement as follows:

1. For purposes of the Agreement, Effective Date is hereby defined as being December 31, 2004 and
all references therein to such term will mean December 31, 2004.

2. All other sections and provisions in the Agreement shall continue in full force and effect and
are incorporated by reference into this Amendment No. 1 except that the compensation of Executive
shall be that amount which is presently in effect as determined by the Boards of Directors of the
Employers and not the initial compensation referred to in Section 4(a) of the Agreement.

This Amendment No. 1 to the Agreement shall be deemed effective as of December 31, 2004.

IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment No. 1 to the
Agreement as of this 27th day of January 2005.

1

KNBT BANCORP, INC.

ATTEST:

	 	 	 
	/s/ Michele Linsky	 	By: /s/ Jeffrey P. Feather
	Witness

	 	Title: Chairman

ATTEST: KEYSTONE NAZARETH BANK & TRUST COMPANY

	 	 	 
	/s/ Michele Linsky	 	By: /s/ Scott V. Fainor
	Witness

	 	Title: President and Chief Executive Officer

	 	 	 	EXECUTIVE

	 	 	 
	/s/ Michele Linsky	 	By: /s/ Eugene T. Sobol
	Witness

	 	Eugene T. Sobol
	 
	 	 

2EXHIBIT 10.1

        DESCRIPTION OF COMPENSATION PAYABLE TO NON-MANAGEMENT DIRECTORS

     Upon the recommendation of the Nominating and Governance Committee of the
Board of Directors of American Express Company, on January 24, 2005, the Board
approved the payment of the following compensation to each non-management
director of the Board in respect of his/her service on the Board:

     o   an annual retainer of $64,000; provided, however, that this amount
         shall be reduced by $16,000 if the Director does not attend at least
         75% of the meetings of the Board and meetings of the committees on
         which the Director serves;

     o   2,225 Share Equivalent Units (SEUs) to be awarded under the 2003
         Share Equivalent Unit Plan for Directors upon the Director's election
         or reelection to the Board at the Annual Meeting of Shareholders;

     o   an annual retainer of $20,000 for the chair of the Audit Committee,
         $15,000 for the chair of the Compensation and Benefits Committee and
         $10,000 for the Directors who chair the other committees of the
         Board;

     o   an annual retainer of $5,000 for each member of the Audit
         Committee; and

     o   reimbursement of customary expenses for attending Board, committee
         and shareholder meetings.

     Pursuant to the Company's Deferred Compensation Plan for Directors and
Advisors, each non-management director may elect to defer receipt of 50% or
100% of the compensation payable to the Director for any given year. In
accordance with the Director's instructions, amounts deferred are credited
either to an account that has a crediting schedule based on the Company's
return on equity (the "ROE-Based Option") or an account linked to the
performance of the Company's common stock (the "Stock-Based Option"). Amounts
deferred for which the Director has chosen the ROE-based Option are credited
or debited with interest equivalents at a rate determined pursuant to a
schedule established under the Company's Pay-for-Performance Deferral Program
for senior management that is based on the reported annual return on equity of
the Company. Amounts deferred for which the Director has chosen the
Stock-Based Option are converted hypothetically into units equivalent to the
shares of the Company's common stock ("SEUs"), determined by dividing the
amount of deferred compensation in each calendar quarter by the average market
price of the Company's common stock for the last ten trading days of the
calendar quarter. Amounts deferred for which the Director has chosen the
Stock-Based Option are also credited with dividend equivalents in the form of
additional SEUs on any dividend payment date.EXHIBIT 10.2

American Express Company (the "Company") maintains the American Express
Company Pay-for-Performance Deferral Program for senior management as
described below:

              DESCRIPTION OF PAY-FOR-PERFORMANCE DEFERRAL PROGRAM

         The Pay-for-Performance Deferral Program permits eligible
participants to defer payment of their base salary, annual cash bonus or any
payouts in respect of the Company's portfolio grant program pursuant to the
Company's 1998 Incentive Compensation Plan, as amended; provided, however,
that generally, the maximum total amount that a participant may defer into his
or her deferral account from all sources under the deferral program in the
annual election period (historically held in December) is one times base
salary. The program annually credits interest equivalents to, or reduces the
value of, deferred amounts according to a schedule based on the reported
annual return on equity ("ROE") of the Company. The Compensation and Benefits
Committee of the Board of Directors (the "Compensation Committee") of the
Company may adjust the schedule, prospectively or retroactively, in its sole
discretion without a participant's prior consent or notice. In November 2004,
the Committee set the overall schedule of rates at which interest equivalents
are credited to deferred amounts, such that the rates for amounts deferred
beginning in 2005 range from 0% (if the Company's ROE for a given year is 1%)
to a maximum of 14% (if the Company's ROE for a given year is 25% or more).
Deferred balances are reduced in value if the annual ROE is zero or less for a
given year.

         If a participant elects to defer any compensation under the
Pay-for-Performance Deferral Program, he or she must defer such compensation
for at least five years. In the event a participant's employment by the
Company or any of its subsidiaries terminates prior to the end of the minimum
five-year deferral period for any reason other than retirement, disability or
death, then the participant's account is paid out in a lump sum with interest
equivalents credited or debited for the entire period of deferral at the
lesser of (i) the initial deferred amount credited or debited annually at the
ROE-based rate described above or (ii) the initial deferred amount credited
annually with the rate of return on the applicable five-year U.S. Treasury
note. In the event a participant's employment by the Company or any of its
subsidiaries terminates on or after the end of the minimum five-year deferral
period for any reason other than retirement, disability or death, then the
participant's account is paid out in a lump sum with interest equivalents
credited or debited annually using the ROE-based rate described above.

         The Committee may delay payments under the program until they are
fully deductible under Section 162(m) of the U.S. Internal Revenue Code of
1986, as amended.EXHIBIT 10.3

                           AMERICAN EXPRESS COMPANY
                          AMERICAN EXPRESS BANK LTD.

             DEFERRED COMPENSATION PLAN FOR DIRECTORS AND ADVISORS
                     (As amended effective July 28, 2003)

SECTION 1.  EFFECTIVE DATE

The effective date of the Plan is October 1, 1977, except as otherwise
provided therein.

SECTION 2.  ELIGIBILITY

Any Director or Advisor to the Board of American Express Company (the
"Company") or Director of American Express Bank Ltd. ("AEB") (hereinafter
"Directors") who is not an officer or employee of the Company, AEB or a
subsidiary thereof is eligible to participate in the Plan.

SECTION 3.  AMOUNT AND TERM OF DEFERRAL

A Director may elect to defer the receipt of either 50% or 100% of the
compensation payable to the Director for serving on the Board of Directors of
the Company or AEB, as well as service on Committees of those Boards. The term
of deferral shall be the calendar year from January 1 to December 31.

SECTION 4.  DEFERRED COMPENSATION ACCOUNTS

Deferred compensation will be credited to the Director's bookkeeping
account(s) established under the Plan. In accordance with the Director's
instructions, amounts deferred will be credited either to an account linked to
the Company's return on equity (the "ROE-Based Option") or an account linked
to the performance of the Company's Common Stock, par value $0.20 per share
(the "Share Equivalent Option") as more completely described below.

(a)             ROE-Based Option

                Amounts deferred for which the Director has chosen the
                ROE-Based Option shall be credited or debited with interest
                equivalents at a rate equal to the ROE Formula Rate under the
                Company's Pay-for-Performance Deferral Program.

                As promptly as practicable each year after the Compensation
                and Benefits Committee determines the ROE Formula Rate with
                respect to the prior year, the amounts held in the account
                under the ROE-Based Option on December 31 of the prior year
                shall be credited or debited at the ROE Formula Rate as
                follows: Amounts that have been held in the account for the
                entire prior year will be credited or debited by an annual
                percentage rate equal to the ROE Formula Rate. Amounts that
                were deferred during the prior year will be credited or
                debited at a proration of the annual ROE Formula Rate based on
                the number of days during the prior year they were held in the
                account (e.g., the number of days actually held divided by
                366).

                                     -1-
<PAGE>

         (b)    Share Equivalent Option

                Amounts deferred for which the Director has chosen the Share
                Equivalent Option will be converted hypothetically into units
                equivalent to the shares of the Company's Common Stock ("Share
                Equivalent Units or SEUs"), determined by dividing the amount
                of deferred compensation in each calendar quarter by the
                average market price of the Common Shares for the last fifteen
                (15) trading days of such calendar quarter. On any dividend
                payment date for the Common Shares, dividend equivalents in
                the form of additional SEUs will be credited to the Director's
                account equal to (i) the per-share cash dividend divided by
                the average market price of the Common Shares on the payment
                date, multiplied by (ii) the number of such units credited to
                such account on the payment date.

                (b)(i) Stock Splits

                In the event of any change in the outstanding Common Shares of
                the Company by reasons of any stock split, stock dividend,
                split up, split-off, spin-off, recapitalization, merger,
                consolidation, rights offering, reorganization, combination or
                exchange of shares, a sale by the company of all or part of
                its assets, any distribution to the shareholders other than a
                normal cash dividend, or other extraordinary or unusual event,
                the number of SEUs credited to a Director's account shall be
                automatically adjusted on the same basis so that the
                proportionate interest of the Director under the Plan shall be
                maintained as before the occurrence of such event.

                (b)(ii) Valuing SEUs Payable to Directors

                SEUs shall be payable to a Director as of December 31 of the
                year in which Board service terminates or the year in which
                the director has elected to receive a payment. The SEUs will
                be valued for payment by multiplying the applicable number of
                units by the average of the average market price of a Common
                Share as reported on the New York Stock Exchange Composite
                Transactions Tape for the fifteen (15) trading days
                immediately preceding December 31.

                The average market price on any valuation date under the Plan
                shall be the average of the highest and lowest sales prices of
                the stock as reported on the New York Stock Exchange Composite
                Transactions Tape.

SECTION 5.  TIME OF ELECTION; TRANSFER OF BALANCES

A Director who is newly elected shall make his or her election to participate
in the Plan within 60 days of his or her initial election. Thereafter, if a
director wishes to change his or her election, they should do so not later
than December 31 for compensation to be paid in the next year.

Directors who participate in the Plan may also elect, between December 1 and
December 31 of each year, to transfer existing balances between the ROE based
account and the SEU account. Such transfers shall occur as of December 31 and
must involve the entire balance; partial account balance transfers are not
permitted. In the event of a balance transfer, the SEU's will be valued at the
15 trading day average price immediately prior to December 31.

                                     -2-
<PAGE>

SECTION 6.  FORM OF DISTRIBUTION OF ACCOUNT BALANCE

A Director may elect to receive amounts accumulated in his or her account
under the Plan in cash in either (a) a lump sum or (b) a number of annual
installments (not to exceed 10) as specified by the Director. Regardless of
the election that a Director may make, he or she must begin to receive
distributions not earlier than his or her termination of service as a director
and not later than the tenth anniversary or termination of such service. In
the absence of a valid election, the balances that have accumulated in a
Director's account will be distributed as promptly as administratively
practicable following such Director's termination of service as a director.

Distributions will be paid within the first 60 days of the year, based on the
account balance as of December 31 of the prior year.

If the Director elects to receive installment payments, each installment will
be paid proportionally, based on the number of remaining installment payments
and the number of remaining balance(s) accumulated in the Director's account,
including related accrued dividends.

SECTION 7.  DEATH PRIOR TO RECEIPT

In the event that a Director dies prior to receipt of any or all of the
amounts payable to him or her pursuant to the Plan, any amounts that are then
credited to the Director's account shall be paid to the legal representatives
of the Director's estate in a lump sum within sixty (60) days following the
Company's receipt of notification of the Director's death.

SECTION 8.  DIRECTOR'S RIGHTS UNSECURED

The right of any Director to receive future payments under the provisions of
the Plan shall be an unsecured, contractual claim against the general assets
of the Company. The Plan shall be unfunded. The Company shall not be required
to establish any special or separate fund or to make any segregation of assets
the payment of any amounts under the Plan.

Participants may not sell, transfer, assign, pledge, levy, attach, encumber or
alienate any amounts payable under the Plan.

SECTION 9.  STATEMENT OF ACCOUNT

A statement of account will be sent to each Director not later than sixty (60)
days after the close of each calendar quarter, which will confirm the
Director's account balance(s) as of the end of the preceding quarter.

SECTION 10.  AMENDMENT

The Plan may be amended at any time and from time to time by the Board of
Directors of the Company' provided, however, that the Board may not adopt any
amendment that would materially and adversely affect any right or benefit to
any Director with respect to any SEUs theretofore credited without such
Director's written consent.

                                     -3-

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