Document:

EXHIBIT 10.1

                              AMENDED AND RESTATED
                              EMPLOYMENT AGREEMENT

         THIS AMENDED AND RESTATED  EMPLOYMENT  AGREEMENT (this  "Agreement") is
effective  as of the 19th day of November  2008,  between  Harleysville  Savings
Financial   Corporation,   a  Pennsylvania   corporation  (the   "Corporation"),
Harleysville  Savings  Bank, a  Pennsylvania  chartered  stock savings bank (the
"Bank") and a wholly  owned  subsidiary  of the  Corporation  (collectively  the
"Employers"), and Ronald B. Geib (the "Executive").

                                   WITNESSETH

         WHEREAS,  the Executive is presently an officer of the  Corporation and
the Bank, and the Employers  desire to be ensured of the  Executive's  continued
active participation in the business of the Employers;

         WHEREAS,  in order to induce the  Executive  to remain in the employ of
the Employers and in consideration of the Executive's  agreeing to remain in the
employ of the Employers,  the parties  desire to specify the severance  benefits
which shall be due to the  Executive in the event that his  employment  with the
Employers is terminated under certain specified circumstances;

         WHEREAS,  the Bank entered into a written agreement on May 1, 1987 with
respect to the  employment of the  Executive,  which was amended and restated by
the Employers as of October 31, 2006 (the "Prior Agreement");

         WHEREAS,  the Employers and the Executive  believe certain revisions to
the Prior Agreement are appropriate,  including amending and restating the Prior
Agreement in its entirety as  hereinafter  set forth in order to comply with the
requirements  of Section 409A of the Internal  Revenue Code of 1986,  as amended
(the "Code"); and

         WHEREAS, this Agreement supersedes in its entirety the Prior Agreement;

         NOW  THEREFORE,  in  consideration  of  the  premises  and  the  mutual
agreements herein contained, the parties hereby agree as follows:

         1.  Definitions.  The following words and terms shall have the meanings
set forth below for the purposes of this Agreement:

         (a) Annual  Compensation.  The Executive's  "Annual  Compensation"  for
purposes of this Agreement shall be deemed to mean the average  aggregate annual
compensation  paid to the Executive  and  includible  in the  Executive's  gross
income for federal income tax purposes  during the five calendar years preceding
the year in which the Date of Termination occurs.

         (b) Base  Salary.  "Base  Salary"  shall have the  meaning set forth in
Section 3(a) hereof.

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         (c) Cause.  Termination of the Executive's employment for "Cause" shall
mean  termination  because  of  personal   dishonesty,   incompetence,   willful
misconduct,  breach of fiduciary duty  involving  personal  profit,  intentional
failure  to  perform  stated  duties,  willful  violation  of any  law,  rule or
regulation  (other than traffic  violations or similar  offenses) or final cease
and desist  order or material  breach of any  provision of this  Agreement.  For
purposes of this subparagraph,  no act or failure to act on the Executive's part
shall be  considered  "willful"  unless  done,  or  omitted  to be done,  by the
Executive not in good faith and without  reasonable  belief that the Executive's
action or omission was in the best interest of the Employers;  provided that any
act or omission to act on the Executive's  behalf in reliance upon an opinion of
counsel  to the Bank or  counsel  to the  Executive  shall  not be  deemed to be
willful.

         (d) Change in Control.  "Change in Control"  shall mean a change in the
ownership of the  Corporation or the Bank, a change in the effective  control of
the  Corporation  or the  Bank or a change  in the  ownership  of a  substantial
portion of the assets of the  Corporation  or the Bank, in each case as provided
under Section 409A of the Code and the regulations thereunder.

         (e) Code.  "Code"  shall mean the  Internal  Revenue  Code of 1986,  as
amended.

         (f) Date of Termination.  "Date of  Termination"  shall mean (i) if the
Executive's  employment is terminated for Cause, the date on which the Notice of
Termination is given,  and (ii) if the Executive's  employment is terminated for
any other reason, the date specified in the Notice of Termination.

         (g) Disability.  "Disability" shall mean the Executive (i) is unable to
engage  in  any  substantial   gainful  activity  by  reason  of  any  medically
determinable  physical or mental  impairment  which can be expected to result in
death or can be expected to last for a continuous period of not less than twelve
(12) months,  or (ii) is, by reason of any  medically  determinable  physical or
mental impairment which can be expected to result in death or can be expected to
last for a  continuous  period of not less than  twelve (12)  months,  receiving
income replacement  benefits for a period of not less than three months under an
accident and health plan covering employees of the Employers.

         (h)  Good  Reason.  Termination  by the  Executive  of the  Executive's
employment for "Good Reason" shall mean  termination  by the Executive  based on
the occurrence of any of the following events:

                  (i) any material  breach of this  Agreement by the  Employers,
         including  without  limitation  any of the  following:  (A) a  material
         diminution  in  the  Executive's  base  compensation,  (B)  a  material
         diminution in the Executive's authority,  duties or responsibilities as
         prescribed  in Section  2, or (C) any  requirement  that the  Executive
         report to a corporate  officer or employee of the Employers  instead of
         reporting directly to the Boards of Directors of the Employers, or

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                  (ii) any material  change in the geographic  location at which
         the Executive must perform his services under this Agreement;

         provided, however, that prior to any termination of employment for Good
         Reason,  the  Executive  must  first  provide  written  notice  to  the
         Employers  within  ninety  (90) days of the  initial  existence  of the
         condition,   describing  the  existence  of  such  condition,  and  the
         Employers  shall  thereafter  have the  right to remedy  the  condition
         within thirty (30) days of the date the Employers  received the written
         notice from the Executive. If the Employers remedy the condition within
         such thirty (30) day cure  period,  then no Good Reason shall be deemed
         to exist with respect to such condition. If the Employers do not remedy
         the  condition  within  such  thirty  (30)  day cure  period,  then the
         Executive  may deliver a Notice of  Termination  for Good Reason at any
         time  within  sixty (60) days  following  the  expiration  of such cure
         period.

         (i) IRS. IRS shall mean the Internal Revenue Service.

         (j) Notice of Termination. Any purported termination of the Executive's
employment by the Employers for any reason,  including  without  limitation  for
Cause, Disability or Retirement,  or by the Executive for any reason,  including
without  limitation for Good Reason,  shall be communicated by a written "Notice
of  Termination" to the other party hereto.  For purposes of this  Agreement,  a
"Notice  of  Termination"  shall mean a dated  notice  which (i)  indicates  the
specific termination provision in this Agreement relied upon, (ii) sets forth in
reasonable  detail  the facts and  circumstances  claimed to provide a basis for
termination  of the  Executive's  employment  under the  provision so indicated,
(iii) specifies a Date of Termination,  which shall be not less than thirty (30)
nor more that ninety (90) days after such Notice of Termination is given, except
that any termination of the Executive's  employment for Cause shall be effective
immediately, and (iv) is given in the manner specified in Section 12 hereof.

         (k) Retirement.  "Retirement"  shall mean voluntary  termination by the
Executive  of the  Executive's  employment  in  accordance  with the  Employers'
retirement policies,  including early retirement,  generally applicable to their
salaried employees.

         2. Term of Employment.

         (a) The  Employers  hereby  employ the Executive as President and Chief
Executive Officer and the Executive hereby accepts said employment and agrees to
render such services to the Employers on the terms and  conditions  set forth in
this  Agreement.  The term of employment  under this Agreement shall be for five
years  commencing on May 1, 2008 and, upon approval of the Board of Directors of
each of the Employers, shall automatically extend for an additional year on each
May 1 such that at any time the remaining term of this  Agreement  shall be from
four to five years unless the Executive gives written notice to the Employers of
the Executive's  election not to extend the term, with such written notice to be
given not less than  forty-five  (45) days prior to any such May 1. If the Board
of Directors of either of the Employers  elects not to extend the term, it shall
give written  notice of such decision to the Executive not less than  forty-five
(45) days prior to any such May 1. If any party  gives  timely  notice  that the
term will not be

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extended as of any May 1, then this Agreement  shall terminate at the conclusion
of its remaining  term.  References  herein to the term of this Agreement  shall
refer both to the initial term and successive terms.

         (b) During the term of this  Agreement,  the Executive shall manage the
operations  of the  Employers  and oversee the officers  that report to him. The
Executive shall also oversee the  implementation  of the policies adopted by the
Boards of Directors of the Employers and shall report  directly to the Boards of
Directors.  In addition, the Executive shall perform such executive services for
the  Employers  as may be  consistent  with his  titles  and  from  time to time
assigned to him by the Employers' Boards of Directors.

         (c) The  Executive  shall be  nominated  to be a member of the Board of
Directors of the Corporation, and shall be a member of the Board of Directors of
the Bank, as long as the Executive  remains an employee in good standing  and/or
has not violated any of the terms and provisions of this Agreement.  Termination
of employment for any reason shall be deemed to be a resignation  from the Board
of Directors of the Corporation and from the Board of Directors of the Bank.

         3. Compensation and Benefits.

         (a) The  Employers  shall  compensate  and pay  the  Executive  for his
services  during the term of this Agreement at a minimum base salary of $256,600
per year  ("Base  Salary"),  which  may be  increased  from time to time in such
amounts as may be  determined by the Boards of Directors of the  Employers,  and
may not be  decreased  without  the  Executive's  express  written  consent.  In
addition to his Base Salary,  the Executive  shall be entitled to receive during
the term of this  Agreement  such bonus  payments  as may be  determined  by the
Boards of Directors of the Employers.

         (b) During the term of this Agreement,  the Executive shall be entitled
to  participate  in and receive the benefits of any pension or other  retirement
benefit plan,  profit sharing plan, stock option plan,  employee stock ownership
plan,  welfare and fringe benefit  arrangements,  or such other employee benefit
plans,  programs,  policies,  benefits,  arrangements  and  privileges  given to
employees and executives of the Employers,  to the extent  commensurate with his
then duties and  responsibilities,  as fixed by the Boards of  Directors  of the
Employers.  The Employers shall not make any changes in such plans,  benefits or
privileges  which  would  adversely  affect the  Executive's  rights or benefits
thereunder,  unless such change occurs  pursuant to a program  applicable to all
executive  officers of the  Employers  and does not result in a  proportionately
greater adverse change in the rights of or benefits to the Executive as compared
with any other executive officer of the Employers. Nothing paid to the Executive
under any plan or  arrangement  presently  in effect  or made  available  in the
future  shall be deemed to be in lieu of the  salary  payable  to the  Executive
pursuant to Section 3(a) hereof.

         (c) During the term of this Agreement,  the Executive shall be entitled
to paid annual vacation in accordance with the policies as established from time
to time by the Boards of Directors of the Employers.  The Executive shall not be
entitled to receive any additional

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compensation  from the Employers  for failure to take a vacation,  nor shall the
Executive be able to accumulate  unused vacation time from one year to the next,
except to the extent  authorized by the Employers'  vacation  policies or by the
Boards of Directors of the Employers.

         (d) The  Executive's  compensation,  benefits,  severance  and expenses
shall be paid by the  Corporation  and the Bank in the same  proportions  as the
time  and  services  actually  expended  by the  Executive  on  behalf  of  each
respective Employer.

         4. Expenses.  The Employers  shall reimburse the Executive or otherwise
provide for or pay for all  reasonable  expenses  incurred by the  Executive  in
furtherance of or in connection  with the business of the Employers,  including,
but  not by way of  limitation,  automobile  and  traveling  expenses,  and  all
reasonable   entertainment   expenses   (whether  incurred  at  the  Executive's
residence,   while   traveling  or  otherwise),   subject  to  such   reasonable
documentation  and other  limitations  as may be  established  by the  Boards of
Directors of the  Employers.  If such expenses are paid in the first instance by
the  Executive,  the Employers  shall  reimburse the  Executive  therefor.  Such
reimbursement  shall be paid promptly by the Employers and in any event no later
than March 15 of the year immediately  following the year in which such expenses
were incurred.

         5. Termination.

         (a) The Employers  shall have the right,  at any time upon prior Notice
of  Termination,  to terminate  the  Executive's  employment  hereunder  for any
reason,  including  without  limitation  termination  for Cause,  Disability  or
Retirement,  and the  Executive  shall  have the  right,  upon  prior  Notice of
Termination, to terminate his employment hereunder for any reason.

         (b) In the event that (i) the  Executive's  employment is terminated by
the  Employers  for Cause,  Retirement  or the  Executive's  death,  or (ii) the
Executive  terminates  his  employment  hereunder  for any reason other than for
Disability  or Good Reason,  the Executive  shall have no right  pursuant to the
terms of this Agreement to  compensation  or other benefits for any period after
the applicable Date of Termination.

         (c) In the event the Executive's employment hereunder is terminated due
to  Disability,  the  Executive  shall be  entitled  to  receive  the  following
percentages of his Base Salary for the following periods of his Disability:  (i)
100%  for the  first  six  months,  75%  for the  next  twelve  months,  and 60%
thereafter for the remaining term of this Agreement. Disability payments will be
made on a  monthly  basis  and  will  commence  on the  first  day of the  month
following the  Executive's  termination  due to  Disability.  Upon  returning to
active duties,  the Executive's full compensation as set forth in this Agreement
shall  be  reinstated.  In the  event  that  the  Executive  returns  to  active
employment  on other  than a  full-time  basis,  then his Base  Salary  shall be
reduced in  proportion  to the time  spent in said  employment.  There  shall be
deducted from the amounts paid to the Executive  hereunder  during any period of
Disability any amounts actually paid to the Executive pursuant to any disability
insurance  or  other  similar  program  which  the Bank  has  instituted  or may
institute  on  behalf of its  employees  for the  purpose  of  compensating  the
Executive  in  the  event  of a  Disability,  including  workmen's  compensation

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benefits and Social Security disability  benefits.  The Executive shall have the
duty to apply for such  benefits and shall  provide to the Bank the right to set
off from any amounts so received the amount of payments made hereunder.

         (d) If the Executive's employment shall be terminated prior to a Change
in Control by (i) the Employers for other than Cause, Disability,  Retirement or
the Executive's death or (ii) the Executive for Good Reason,  then the Employers
shall:

                  (A) pay to the  Executive,  within thirty (30) days  following
         the Date of Termination,  a lump sum cash severance amount equal to the
         product of the Base Salary  multiplied by the greater of (i) the number
         of  years  (including  partial  years)  remaining  in the  term of this
         Agreement,  or (ii)  2.99,  with such  amount to be  discounted  to the
         present  value using a discount  rate equal to the  applicable  federal
         rate  published  by the  IRS  for  the  month  in  which  the  Date  of
         Termination occurs;

                  (B) maintain and provide for a period ending at the earlier of
         (i) the  expiration of the remaining  term of this  Agreement as of the
         Date of Termination  before giving effect to the Notice of Termination,
         (ii) three years following the Date of Termination or (iii) the date of
         the Executive's full time employment by another employer (provided that
         the  Executive  is  entitled  under  the  terms of such  employment  to
         benefits  substantially similar to those described in this subparagraph
         (B)),  with the  Executive to pay the costs of such  coverage  normally
         paid  by  employees  of  the  Employers,   the  Executive's   continued
         participation  in all  group  insurance,  life  insurance,  health  and
         accident insurance and disability  insurance in which the Executive was
         participating  immediately  prior to the Date of Termination;  provided
         that any insurance  premiums payable by the Employers or any successors
         pursuant to this Section  5(d)(B) shall be payable at such times and in
         such  amounts  as if  the  Executive  was  still  an  employee  of  the
         Employers,  subject to any  increases  in such  amounts  imposed by the
         insurance  company  or  COBRA,  and the  amount of  insurance  premiums
         required  to be paid by the  Employers  in any  taxable  year shall not
         affect  the amount of  insurance  premiums  required  to be paid by the
         Employers in any other taxable year;  and provided  further that if the
         Executive's  participation  in any group insurance plan is barred,  the
         Employers  shall either arrange to provide the Executive with insurance
         benefits  substantially  similar  to  those  which  the  Executive  was
         entitled  to  receive  under  such  group  insurance  plan or,  if such
         coverage  cannot be obtained,  pay a lump sum cash  equivalency  amount
         within thirty (30) days following the Date of Termination  based on the
         annualized  rate of premiums being paid by the Employers as of the Date
         of Termination; and

                  (C) pay to the  Executive,  in a lump sum within  thirty  (30)
         days  following  the Date of  Termination,  a cash amount  equal to the
         projected cost to the Employers of providing  benefits to the Executive
         for a period  equal to the  lesser  of (i) the  remaining  term of this
         Agreement as of the Date of  Termination  before  giving  effect to the
         Notice  of  Termination  or (ii)  three  years  following  the  Date of
         Termination,  pursuant to any other employee benefit plans, programs or
         arrangements  offered  by the  Employers  in which  the  Executive  was
         entitled to  participate  immediately  prior to the Date of Termination
         (other

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         than retirement plans,  stock  compensation  plans or cash compensation
         plans of the Employers), with the projected cost to the Employers to be
         based on the costs incurred for the calendar year immediately preceding
         the year in which the Date of Termination occurs.

         (e) If the Executive's  employment by the Employers shall be terminated
concurrently  with or  subsequent  to a Change in Control and during the term of
this Agreement by (i) the Employers for other than Cause, Disability, Retirement
or the  Executive's  death  or (ii) the  Executive  for  Good  Reason,  then the
Employers shall, subject to the provisions of Section 6 hereof, if applicable:

                  (A) pay to the  Executive,  within thirty (30) days  following
         the Date of  Termination,  a lump sum cash  severance  amount  equal to
         three (3) times the sum of the Executive's Annual Compensation;

                  (B) maintain and provide for a period ending at the earlier of
         (i) the  expiration of the remaining  term of this  Agreement as of the
         Date of Termination  before giving effect to the Notice of Termination,
         (ii) three years following the Date of Termination or (iii) the date of
         the Executive's full time employment by another employer (provided that
         the  Executive  is  entitled  under  the  terms of such  employment  to
         benefits  substantially similar to those described in this subparagraph
         (B)),  with the  Executive to pay the costs of such  coverage  normally
         paid  by  employees  of  the  Employers,   the  Executive's   continued
         participation  in all  group  insurance,  life  insurance,  health  and
         accident insurance, and disability insurance in which the Executive was
         participating  immediately  prior to the Date of Termination;  provided
         that any insurance  premiums payable by the Employers or any successors
         pursuant to this Section  5(e)(B) shall be payable at such times and in
         such  amounts  as if  the  Executive  was  still  an  employee  of  the
         Employers,  subject to any  increases  in such  amounts  imposed by the
         insurance  company  or  COBRA,  and the  amount of  insurance  premiums
         required  to be paid by the  Employers  in any  taxable  year shall not
         affect  the amount of  insurance  premiums  required  to be paid by the
         Employers in any other taxable year;  and provided  further that if the
         Executive's  participation  in any group insurance plan is barred,  the
         Employers  shall either arrange to provide the Executive with insurance
         benefits  substantially  similar  to  those  which  the  Executive  was
         entitled  to  receive  under  such  group  insurance  plan or,  if such
         coverage  cannot be obtained,  pay a lump sum cash  equivalency  amount
         within thirty (30) days following the Date of Termination  based on the
         annualized  rate of premiums being paid by the Employers as of the Date
         of Termination; and

                  (C) pay to the  Executive,  in a lump sum within  thirty  (30)
         days  following  the Date of  Termination,  a cash amount  equal to the
         projected cost to the Employers of providing  benefits to the Executive
         for a period  equal to the  lesser  of (i) the  remaining  term of this
         Agreement as of the Date of  Termination  before  giving  effect to the
         Notice  of  Termination  or (ii)  three  years  following  the  Date of
         Termination,  pursuant to any other employee benefit plans, programs or
         arrangements  offered  by the  Employers  in which  the  Executive  was
         entitled to  participate  immediately  prior to the Date of Termination
         (other

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         than retirement plans,  stock  compensation  plans or cash compensation
         plans of the Employers), with the projected cost to the Employers to be
         based on the costs incurred for the calendar year immediately preceding
         the year in which the Date of Termination occurs.

         6. Limitation of Benefits under Certain Circumstances.  If the payments
and benefits  pursuant to Section 5 hereof,  either alone or together with other
payments  and  benefits  which the  Executive  has the right to receive from the
Employers,  would  constitute a "parachute  payment"  under  Section 280G of the
Code,  then the  payments  and  benefits  payable by the  Employers  pursuant to
Section 5 hereof shall be reduced by the minimum  amount  necessary to result in
no portion of the payments and benefits payable by the Employers under Section 5
being  non-deductible to the Employers  pursuant to Section 280G of the Code and
subject  to the  excise  tax  imposed  under  Section  4999 of the Code.  If the
payments  and  benefits  under  Section 5 are  required to be reduced,  the cash
severance  shall  be  reduced  first,  followed  by a  reduction  in the  fringe
benefits.  The determination of any reduction in the payments and benefits to be
made  pursuant to Section 5 shall be based upon the opinion of  independent  tax
counsel selected by the Employers and paid by the Employers.  Such counsel shall
promptly prepare the foregoing  opinion,  but in no event later than thirty (30)
days from the Date of  Termination,  and may use such  actuaries as such counsel
deems necessary or advisable for the purpose.  Nothing contained in this Section
6 shall result in a reduction of any payments or benefits to which the Executive
may be entitled upon  termination of employment  under any  circumstances  other
than as specified in this Section 6, or a reduction in the payments and benefits
specified in Section 5 below zero.

         7.  Withholding.  All  payments  required  to be made by the  Employers
hereunder to the Executive  shall be subject to the withholding of such amounts,
if any,  relating  to tax and other  payroll  deductions  as the  Employers  may
reasonably  determine  should be  withheld  pursuant  to any  applicable  law or
regulation.

         8. Confidentiality.

         (a)  The  Executive   recognizes  and  acknowledges   that  during  the
Executive's  term of employment  with the  Employers,  the Executive has had and
will have access to, has been and will be provided with and, in some cases,  has
prepared  or  will  prepare  certain   confidential  and  proprietary   business
information  and trade  secrets of the  Employers,  including but not limited to
business plans and  information,  all of which are of  substantial  value to the
Employers in their business.

         (b) The  Executive  understands  and agrees that if, during the term of
employment or at any time thereafter,  the Executive discloses to third parties,
uses for the  Executive's  own benefit or for the benefit of third  parties,  or
copies or makes notes of any of the aforementioned  confidential and proprietary
information  and trade  secrets  (except as may be required  by the  Executive's
duties  with the  Employers),  such  conduct  shall  constitute  a breach of the
confidence  and trust  bestowed  upon the  Executive by the  Employers,  and the
Executive  herein expressly  agrees that injunctive  relief,  in addition to any
other remedies provided by law or in equity,  shall be necessary and appropriate
in the event of such conduct by the Executive.

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<PAGE>

         (c)  The  Executive  agrees  not to use or  cause  to be  used  for the
Executive's  own benefit or for the benefit of any third  parties or to disclose
to any third party in any manner,  directly or indirectly,  any information of a
confidential  or  proprietary  nature,  trade secrets or any other  knowledge or
information,  except  that  which is public  knowledge,  of or  relating  to the
business of the Employers at any time during or after the Executive's employment
with the Employers without the express prior written consent of the Employers.

         (d) The Executive  agrees to return to the  Employers  either before or
immediately  upon  the  termination  of  the  Executive's  employment  with  the
Employers  any  and  all  written  information,  materials  or  equipment  which
constitutes,  contains  or relates  in any way to  proprietary  or  confidential
information or trade secrets of the Employers,  as well as any other  documents,
equipment  and  materials of any kind relating in any way to the business of the
Employers  which are or may be in the  possession,  custody  or  control  of the
Executive which are or may be the property of the Employers whether confidential
or not,  including any and all copies thereof which may have been made by or for
the Executive.

         (e)  The  Executive  agrees  that,   during  the  Executive's  term  of
employment with the Employers and  thereafter,  and except as may be required in
the performance of the Executive's duties with the Employers, the Executive will
not utilize for the  Executive's own benefit or that of any third party and will
not use or  disclose  to any third  party the  Executive's  knowledge  of or any
information  concerning the internal  organization or business  structure of the
Employers or the work assignments or capabilities of any officer and/or employee
of the Employers without the express prior written consent of the Employers.

         9. Noncompetition Agreement. The Executive agrees that:

         (a) During the Executive's  term of employment with the Employers,  the
Executive  will  not  compete  in  any  way  with  the  Employers,  directly  or
indirectly,  and will not consult  with or have any  interest  in any  business,
firm,  person,  partnership,  corporation or other entity,  whether as employee,
officer,  director,  agent, security holder, creditor,  consultant or otherwise,
which competes with the Employers,  directly or indirectly, in any aspect of the
business of the Employers;  provided,  however, that this Section 9 shall not be
deemed to prevent the  Executive's  ownership of not more than 1% of the capital
stock of any publicly held entity.

         (b) The Executive  acknowledges  and agrees that such businesses  which
compete with the Employers include,  without limitation,  those businesses which
provide banking and lending services in the Commonwealth of Pennsylvania.

         (c) The Executive expressly agrees that (i) in the event of a violation
of these noncompetition provisions by the Executive, monetary damages alone will
be inadequate to compensate the  Employers,  (ii) the Employers will be entitled
to injunctive  relief  against the  Executive in addition to any other  remedies
provided by law or in equity and (iii) the noncompetition  obligations contained
herein shall be extended by the length of time during

                                       9
<PAGE>

which the Executive shall have been in breach thereof. Except as provided in the
preceding  sentence,  this Section 9 shall not apply  following a termination of
the Executive's employment.

         10. Severability. If any term, provision,  paragraph or section of this
Agreement shall be determined by a court of competent jurisdiction to be invalid
or  unenforceable  for any  reason,  such  determination  shall not  affect  the
remaining  terms,  provisions,  paragraphs or sections of this  Agreement  which
shall  continue  to be given  full  force and  effect.  If any term,  provision,
paragraph  or  section  of this  Agreement  shall  be  determined  by a court of
competent  jurisdiction to be  unenforceable  because of the duration thereof or
the geographical area included therein,  the parties hereby expressly agree that
the court making such determination  shall have the power to reduce the duration
and/or restrict the  geographical  areas of such term,  provision,  paragraph or
section  and/or to delete such  specific  words or phrases which the court shall
deem  necessary  to permit  enforcement  of such term,  provision,  paragraph or
section in restricted form. Should any court of competent  jurisdiction find any
term,   provision,   paragraph   or  section  of  this   Agreement   invalid  or
unenforceable,  or enforceable  only in restricted  form,  then any such finding
shall apply only to the  jurisdiction of such court and shall not serve to alter
or amend this Agreement in any other jurisdiction.

         11.  Assignability.  The Employers may assign this  Agreement and their
rights and obligations  hereunder in whole, but not in part, to any corporation,
bank or other entity with or into which the  Employers  may  hereafter  merge or
consolidate or to which the Employers may transfer all or  substantially  all of
their assets, if in any such case said  corporation,  bank or other entity shall
by  operation  of law or  expressly  in writing  assume all  obligations  of the
Employers  hereunder as fully as if it had been  originally made a party hereto,
but may not  otherwise  assign this  Agreement or their  rights and  obligations
hereunder. The Executive may not assign or transfer this Agreement or any rights
or obligations hereunder.

         12. Notice.  For the purposes of this Agreement,  notices and all other
communications  provided for in this Agreement  shall be in writing and shall be
deemed  to have been duly  given  when  delivered  or  mailed  by  certified  or
registered mail,  return receipt  requested,  postage prepaid,  addressed to the
respective addresses set forth below:

         To the Employers:          Chairman of the Board
                                    Harleysville Savings Financial Corporation
                                    Harleysville Savings Bank
                                    271 Main Street
                                    Harleysville, Pennsylvania 19438

         To the Executive:          Ronald B. Geib
                                    At the address last appearing on
                                    the personnel records of the Bank

         13. Amendment; Waiver. No provisions of this Agreement may be modified,
waived or discharged unless such waiver,  modification or discharge is agreed to
in  writing

                                       10
<PAGE>

signed by the  Executive  and such  officer or officers  as may be  specifically
designated  by the Boards of Directors of the Employers to sign on their behalf,
except as set  forth  below.  No  waiver by any party  hereto at any time of any
breach by any other  party  hereto of, or  compliance  with,  any  condition  or
provision 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.  In  addition,  notwithstanding  anything  in  this
Agreement to the  contrary,  the  Employers may amend in good faith any terms of
this Agreement, including retroactively, in order to comply with Section 409A of
the Code.  In no event shall the  Employers  be liable for any taxes or interest
penalties incurred by the Executive under Section 409A of the Code.

         14.  Governing  Law. The  validity,  interpretation,  construction  and
performance of this Agreement shall be governed by the laws of the United States
where  applicable and otherwise by the substantive  laws of the  Commonwealth of
Pennsylvania.

         15. Nature of Obligations.  To the extent that the Executive acquires a
right to receive benefits from the Employers  hereunder,  such right shall be no
greater than the right of any unsecured general creditor of the Employers.

         16. Headings.  The section headings contained in this Agreement are for
reference  purposes  only  and  shall  not  affect  in any  way the  meaning  or
interpretation of this Agreement.

         17. Changes in Statutes or Regulations.  If any statutory or regulatory
provision  referenced  herein is  subsequently  changed  or  re-numbered,  or is
replaced by a separate provision,  then the references in this Agreement to such
statutory  or  regulatory  provision  shall be deemed to be a reference  to such
section as amended, re-numbered or replaced.

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

         19. Regulatory Prohibition. Notwithstanding any other provision of this
Agreement to the contrary,  any payments made to the Executive  pursuant to this
Agreement,  or otherwise,  are subject to and conditioned  upon their compliance
with Section 18(k) of the Federal Deposit  Insurance Act (12 U.S.C.  ss.1828(k))
and any regulations promulgated thereunder, including 12 C.F.R. Part 359.

         20. Entire  Agreement.  This  Agreement  embodies the entire  agreement
between the Employers and the  Executive  with respect to the matters  agreed to
herein.  All prior  agreements  between the  Employers  and the  Executive  with
respect to the matters agreed to herein are hereby  superseded and shall have no
force  or  effect,  including  but not  limited  to the  agreement  between  the
Executive and the Bank dated May 1, 1987 and the Prior Agreement.

                                       11
<PAGE>

         IN WITNESS  WHEREOF,  this  Agreement  has been executed as of the date
first written above.

Attest:                             HARLEYSVILLE SAVINGS FINANCIAL CORPORATION

By:     /s/ Adrian D. Gordon       By:     /s/ Mark R. Cummins
        ------------------------           -------------------
Name:   Adrian D. Gordon           Name:   Mark R. Cummins
Title:  Corporate Secretary        Title:  Chairman of the Compensation and
                                             Human Resources Committee

Attest:                             HARLEYSVILLE SAVINGS BANK

By:     /s/ Adrian D. Gordon       By:     /s/ Mark R. Cummins
        ------------------------           -------------------
Name:   Adrian D. Gordon           Name:   Mark R. Cummins
Title:  Corporate Secretary        Title:  Chairman of the Compensation and
                                             Human Resources Committee

Witness:                              EXECUTIVE

By:     /s/ Adrian D. Gordon         By:   /s/ Ronald B. Geib
        ------------------------           ------------------
Name:   Adrian D. Gordon                   Ronald B. Geib
Title:  Corporate Secretary                President and Chief Executive Officer

                                       12EXHIBIT 10.2

                   HARLEYSVILLE SAVINGS FINANCIAL CORPORATION
                   AMENDED AND RESTATED 2000 STOCK OPTION PLAN

                                    ARTICLE I
                            ESTABLISHMENT OF THE PLAN

         Harleysville Savings Financial  Corporation (the "Corporation")  hereby
amends and restates  this 2000 Stock Option Plan (as amended and  restated,  the
"Plan") upon the terms and conditions hereinafter stated, with the amendment and
restatement effective as of November 19, 2008.

                                   ARTICLE II
                               PURPOSE OF THE PLAN

         The purpose of this Plan is to improve the growth and  profitability of
the  Corporation  and  its  Subsidiary  Companies  by  providing  Employees  and
Non-Employee  Directors  with a proprietary  interest in the  Corporation  as an
incentive to contribute  to the success of the  Corporation  and its  Subsidiary
Companies,   and  rewarding  Employees  for  outstanding   performance  and  the
attainment of targeted goals. All Incentive Stock Options issued under this Plan
are intended to comply with the requirements of Section 422 of the Code, and the
regulations thereunder,  and all provisions hereunder shall be read, interpreted
and applied with that purpose in mind.

                                   ARTICLE III
                                   DEFINITIONS

         3.01  "Award"  means an Option  granted  pursuant  to the terms of this
Plan.

         3.02  "Bank"  means   Harleysville   Savings  Bank,  the  wholly  owned
subsidiary of the Corporation.

         3.03 "Board" means the Board of Directors of the Corporation.

         3.04  "Change in Control"  shall mean a change in the  ownership of the
Corporation or the Bank, a change in the effective control of the Corporation or
the Bank or a change in the ownership of a substantial  portion of the assets of
the  Corporation or the Bank, in each case as provided under Section 409A of the
Code and the regulations thereunder.

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

         3.06 "Committee"  means a committee of two or more directors  appointed
by the Board pursuant to Article IV hereof, each of whom shall be a Non-Employee
Director as defined in

                                       1
<PAGE>

Rule  16b-3(b)(3)(i) of the Exchange Act or any successor thereto and an outside
director  within the meaning of Section  162(m) of the Code and the  regulations
promulgated thereunder.

         3.07 "Common  Stock" means shares of the common  stock,  $.10 par value
per share, of the Corporation.

         3.08 "Disability"  shall mean that the holder of an Award (i) is unable
to engage  in any  substantial  gainful  activity  by  reason  of any  medically
determinable  physical or mental  impairment  which can be expected to result in
death or can be  expected  to last for a  continuous  period of not less than 12
months, or (ii) is, by reason of any medically  determinable  physical or mental
impairment  which can be  expected to result in death or can be expected to last
for a continuous period of not less than 12 months, receiving income replacement
benefits for a period of not less than three months under an accident and health
plan covering  employees of the  Corporation or the Bank (or would have received
such benefits for at least three months if he had been  eligible to  participate
in such plan).

         3.09  "Effective  Date"  means the day upon which the Board  originally
adopted this Plan.

         3.10 "Employee"  means any person who is employed by the Corporation or
a  Subsidiary  Company,  or is an Officer  of the  Corporation  or a  Subsidiary
Company,  but not including  directors who are not also Officers of or otherwise
employed by the Corporation or a Subsidiary Company.

         3.11  "Exchange  Act" means the  Securities  Exchange  Act of 1934,  as
amended.

         3.12 "Fair  Market  Value"  shall be equal to the fair market value per
share of the  Corporation's  Common  Stock on the date an Award is granted.  For
purposes  hereof,  the Fair Market Value of a share of Common Stock shall be the
closing  sale price of a share of Common  Stock on the date in question  (or, if
such day is not a trading  day in the U.S.  markets,  on the  nearest  preceding
trading day), as reported with respect to the principal market (or the composite
of the  markets,  if more than one) or national  quotation  system in which such
shares are then traded,  or if no such  closing  prices are  reported,  the mean
between the high bid and low asked  prices that day on the  principal  market or
national  quotation system then in use.  Notwithstanding  the foregoing,  if the
Common Stock is not readily  tradable on an  established  securities  market for
purposes  of  Section  409A of the Code,  then the Fair  Market  Value  shall be
determined  by  means  of  a  reasonable   valuation   method  that  takes  into
consideration all available information material to the value of the Corporation
and that otherwise  satisfies the requirements  applicable under Section 409A of
the Code and the regulations thereunder.

         3.13 "Incentive  Stock Option" means any Option granted under this Plan
which the Board  intends (at the time it is granted)  to be an  incentive  stock
option within the meaning of Section 422 of the Code or any successor thereto.

                                       2
<PAGE>

         3.14  "Non-Employee  Director"  means  a  member  of the  Board  of the
Corporation  or Board of Directors of the Bank who is not an Officer or Employee
of the Corporation or any Subsidiary Company.

         3.15  "Non-Qualified  Option" means any Option  granted under this Plan
which is not an Incentive Stock Option.

         3.16 "Officer"  means an Employee whose position in the  Corporation or
Subsidiary Company is that of a corporate officer, as determined by the Board.

         3.17 "Option" means a right granted under this Plan to purchase  Common
Stock.

         3.18 "Optionee"  means an Employee or  Non-Employee  Director or former
Employee or Non-Employee Director to whom an Option is granted under the Plan.

         3.19   "Retirement"   means  (a)  a  termination  of  employment  which
constitutes a retirement  under the qualified  retirement plan maintained by the
Corporation  or a  Subsidiary  Corporation,  or, if no such plan is  applicable,
which would constitute  retirement under the Corporation's  qualified retirement
plan, if such  individual  were a participant in that plan,  provided,  however,
that the provisions of this subsection (a) will not apply as long as an Optionee
continues  to  serve  as a  Non-Employee  Director,  and  (b)  with  respect  to
Non-Employee  Directors,  a separation from service on the Board of Directors of
the Corporation and any applicable  Subsidiary Company or any successors thereto
(including   service  as  a  director  emeritus  or  advisory  director  to  the
Corporation or any  Subsidiary  Company) after reaching age 65 and having served
as a member of the Board of Directors of the  Corporation  and/or the Bank for a
period of 5 years or more.

         3.20   "Subsidiary   Companies"   means  those   subsidiaries   of  the
Corporation,  including  the Bank,  which  meet the  definition  of  "subsidiary
corporations"  set forth in Section  424(f) of the Code, at the time of granting
of the Option in question.

                                   ARTICLE IV
                           ADMINISTRATION OF THE PLAN

         4.01  Duties  of the  Committee.  The Plan  shall be  administered  and
interpreted  by the  Committee,  as  appointed  from  time to time by the  Board
pursuant to Section 4.02. The Committee shall have the authority to adopt, amend
and rescind such rules,  regulations  and procedures as, in its opinion,  may be
advisable in the  administration  of the Plan,  including,  without  limitation,
rules,  regulations  and  procedures  which  (i) deal  with  satisfaction  of an
Optionee's tax  withholding  obligation  pursuant to Section 12.02 hereof,  (ii)
include  arrangements  to facilitate the Optionee's  ability to borrow funds for
payment of the  exercise  or purchase  price of an Award,  if  applicable,  from
securities brokers and dealers, and (iii) include arrangements which provide for
the payment of some or all of such  exercise  or  purchase  price by delivery of
previously-owned  shares of Common Stock or other property and/or by withholding
some of the shares of Common Stock which are being acquired.  The interpretation
and  construction  by the  Committee of any  provisions  of the Plan,  any rule,
regulation or procedure  adopted by it

                                       3
<PAGE>

pursuant  thereto or of any Award  shall be final and  binding in the absence of
action by the Board.

         4.02  Appointment  and Operation of the  Committee.  The members of the
Committee  shall be appointed  by, and will serve at the pleasure of, the Board.
The Board from time to time may remove  members  from,  or add  members  to, the
Committee,  provided  the  Committee  shall  continue  to consist of two or more
members of the Board, each of whom shall be a Non-Employee  Director, as defined
in  Rule  16b-3(b)(3)(i)  of  the  Exchange  Act or any  successor  thereto.  In
addition, each member of the Committee shall be an "outside director" within the
meaning of Section 162(m) of the Code and  regulations  thereunder at such times
as is  required  under  such  regulations.  The  Committee  shall act by vote or
written consent of a majority of its members.  Subject to the express provisions
and limitations of the Plan, the Committee may adopt such rules, regulations and
procedures  as it deems  appropriate  for the  conduct  of its  affairs.  It may
appoint  one of its  members to be  chairman  and any  person,  whether or not a
member, to be its secretary or agent. The Committee shall report its actions and
decisions to the Board at  appropriate  times but in no event less than one time
per calendar year.

         4.03  Revocation  for  Misconduct.  The Board or the  Committee  may by
resolution  immediately  revoke,  rescind and terminate  any Option,  or portion
thereof,  to the extent not yet exercised,  previously  granted or awarded under
this Plan to an Employee who is discharged from the employ of the Corporation or
a  Subsidiary  Company  for  cause,  which,  for  purposes  hereof,  shall  mean
termination because of the Employee's personal dishonesty, incompetence, willful
misconduct,  breach of fiduciary duty  involving  personal  profit,  intentional
failure to  perform  stated  duties,  willful  violation  of any law,  rule,  or
regulation  (other  than  traffic  violations  or  similar  offenses)  or  final
cease-and-desist  order.  Options  granted  to a  Non-Employee  Director  who is
removed for cause pursuant to the  Corporation's  Articles of Incorporation  and
Bylaws or the Bank's Charter and Bylaws shall terminate as of the effective date
of such removal.

         4.04 Limitation on Liability.  Neither the members of the Board nor any
member of the Committee shall be liable for any action or determination  made in
good faith with respect to the Plan, any rule,  regulation or procedure  adopted
by it pursuant  thereto or any Awards granted under it. If a member of the Board
or  the  Committee  is a  party  or is  threatened  to be  made a  party  to any
threatened,  pending or completed  action,  suit or  proceeding,  whether civil,
criminal,  administrative  or  investigative,  by reason of anything done or not
done by him in such capacity under or with respect to the Plan, the  Corporation
shall, subject to the requirements of applicable laws and regulations, indemnify
such member against all liabilities and expenses  (including  attorneys'  fees),
judgments, fines and amounts paid in settlement actually and reasonably incurred
by him in  connection  with such action,  suit or proceeding if he acted in good
faith and in a manner he reasonably  believed to be in the best interests of the
Corporation  and its  Subsidiary  Companies  and,  with  respect to any criminal
action or  proceeding,  had no  reasonable  cause to  believe  his  conduct  was
unlawful.

         4.05 Compliance with Laws and Regulations. All Awards granted hereunder
shall be subject to all applicable federal and state laws, rules and regulations
and to such approvals by any government or regulatory agency as may be required.
The Corporation  shall not be required to issue or deliver any  certificates for
shares  of  Common  Stock  prior  to  the  completion  of  any

                                        4
<PAGE>

registration  or  qualification  of or obtaining  of consents or approvals  with
respect to such shares under any federal or state law or any rule or  regulation
of any government  body,  which the Corporation  shall, in its sole  discretion,
determine to be necessary or advisable.  Moreover, no Option may be exercised if
such exercise would be contrary to applicable laws and regulations.

         4.06 Restrictions on Transfer.  The Corporation may place a legend upon
any  certificate  representing  shares  acquired  pursuant  to an Award  granted
hereunder  noting  that  the  transfer  of  such  shares  may be  restricted  by
applicable laws and regulations.

         4.07 No Deferral of  Compensation  Under Section 409A of the Code.  All
Awards  granted  under the Plan are  designed  to not  constitute  a deferral of
compensation for purposes of Section 409A of the Code. Notwithstanding any other
provision in this Plan to the contrary,  all of the terms and  conditions of any
Option  granted  under this Plan shall be designed to satisfy the  exemption for
stock  options set forth in the  regulations  issued  under  Section 409A of the
Code.  Both this Plan and the terms of all Options  granted  hereunder  shall be
interpreted in a manner that requires compliance with all of the requirements of
the  exemption  for stock  options  set forth in the  regulations  issued  under
Section  409A  of the  Code.  No  Optionee  shall  be  permitted  to  defer  the
recognition  of income  beyond the exercise  date of a  Non-Qualified  Option or
beyond the date that the Common Stock received upon the exercise of an Incentive
Stock Option is sold.

                                    ARTICLE V
                                   ELIGIBILITY

         Awards may be granted to such Employees and  Non-Employee  Directors of
the Corporation  and its Subsidiary  Companies as may be designated from time to
time by the Board or the Committee. Awards may not be granted to individuals who
are not Employees or  Non-Employee  Directors of either the  Corporation  or its
Subsidiary Companies.  Non-Employee  Directors shall be eligible to receive only
Non-Qualified Options.

                                   ARTICLE VI
                        COMMON STOCK COVERED BY THE PLAN

         6.01 Option  Shares.  The  aggregate  number of shares of Common  Stock
which may be issued pursuant to this Plan,  subject to adjustment as provided in
Article IX,  shall be 110,000.  None of such shares shall be the subject of more
than one Award at any time,  but if an  Option as to any  shares is  surrendered
before  exercise,  or expires or terminates  for any reason  without having been
exercised in full, or for any other reason ceases to be exercisable,  the number
of shares covered thereby shall again become  available for grant under the Plan
as if no Awards had been previously granted with respect to such shares.

         6.02 Source of Shares. The shares of Common Stock issued under the Plan
may be authorized but unissued  shares,  treasury shares or shares  purchased by
the  Corporation  on the open market or from  private  sources for use under the
Plan.

                                        5
<PAGE>

                                   ARTICLE VII
                                DETERMINATION OF
                         AWARDS, NUMBER OF SHARES, ETC.

         7.01  Determination of Awards. The Board or the Committee shall, in its
discretion,  determine  from  time  to time  which  Employees  and  Non-Employee
Directors  will be granted Awards under the Plan, the number of shares of Common
Stock  subject to each Award,  whether  each Option will be an  Incentive  Stock
Option or a Non-Qualified  Stock Option and the exercise price of an Option.  In
making all such  determinations  there  shall be taken into  account the duties,
responsibilities  and  performance of each  Optionee,  his present and potential
contributions to the growth and success of the Corporation,  his salary or other
compensation  and such  other  factors  deemed  relevant  to  accomplishing  the
purposes of the Plan.

         7.02 Maximum Awards to any Person.  Notwithstanding  anything contained
in this Plan to the  contrary,  the maximum  number of shares of Common Stock to
which  Awards may be granted to any  individual  in any  calendar  year shall be
40,000.

                                  ARTICLE VIII
                                     OPTIONS

         Each  Option  granted  hereunder  shall be on the  following  terms and
conditions:

         8.01  Stock  Option  Agreement.  The proper  Officers  on behalf of the
Corporation and each Optionee shall execute a Stock Option Agreement which shall
set forth the total number of shares of Common  Stock to which it pertains,  the
exercise  price,  whether it is a  Non-Qualified  Option or an  Incentive  Stock
Option,  and such other terms,  conditions,  restrictions  and privileges as the
Board or the Committee in each instance  shall deem  appropriate,  provided they
are not  inconsistent  with the terms,  conditions  and provisions of this Plan.
Each Optionee shall receive a copy of his executed Stock Option  Agreement.  Any
Option granted with the intention that it will be an Incentive  Stock Option but
which fails to satisfy a requirement  for Incentive Stock Options shall continue
to be valid and shall be treated as a Non-Qualified Option.

         8.02 Option Exercise Price.

              (a)  Incentive  Stock  Options.  The per share  price at which the
subject Common Stock may be purchased upon exercise of an Incentive Stock Option
shall be no less than one hundred  percent  (100%) of the Fair Market Value of a
share of Common Stock at the time such Incentive Stock Option is granted, except
as provided in Section 8.09(b).

              (b)  Non-Qualified  Options.  The per  share  price at  which  the
subject  Common Stock may be purchased upon exercise of a  Non-Qualified  Option
shall be  established  by the  Committee  at the time of grant,  but in no event
shall be less than the greater of (i) the par value or (ii) one hundred  percent
(100%)  of the Fair  Market  Value of a share of  Common  Stock at the time such
Non-Qualified Option is granted.

                                       6
<PAGE>

         8.03  Vesting and Exercise of Options.

              (a) General  Rules.  Incentive  Stock  Options  and  Non-Qualified
Options  shall  become  vested and  exercisable  at the rate,  to the extent and
subject to such  limitations  as may be specified by the Board or the Committee.
Notwithstanding the foregoing,  no vesting shall occur on or after an Employee's
employment or service as a Non-Employee  Director with the  Corporation  and all
Subsidiary  Companies  is  terminated  for any  reason  other  than  his  death,
Disability,  Retirement  or a Change in Control.  In  determining  the number of
shares  of  Common  Stock  with  respect  to which  Options  are  vested  and/or
exercisable, fractional shares will be rounded up to the nearest whole number if
the fraction is 0.5 or higher, and down if it is less.

              (b)  Accelerated  Vesting.  Unless the  Committee  or Board  shall
specifically  state  otherwise  at the time an Option is  granted,  all  Options
granted under this Plan shall become vested and  exercisable in full on the date
an Optionee  terminates  his  employment  with the  Corporation  or a Subsidiary
Company or service as a Non-Employee  Director because of his death,  Disability
or Retirement.  In addition,  all outstanding  Options shall become  immediately
vested and exercisable in full as of the effective date of a Change in Control.

         8.04  Duration of Options.

              (a) General Rule. Except as provided in Sections 8.04(b) and 8.09,
each Option or portion  thereof shall be  exercisable at any time on or after it
vests and remain  exercisable  until the earlier of (i) ten (10) years after its
date of grant or (ii) three (3) months  after the date on which the  Employee or
Non-Employee  Director ceases to be employed by or serve the Corporation and all
Subsidiary  Companies,  or  any  successor  thereto,  unless  the  Board  or the
Committee in its discretion decides at the time of grant or thereafter to extend
such period of exercise  upon  termination  of employment or service to a period
not exceeding five (5) years.

              (b)   Exceptions.   Unless  the  Board  or  the  Committee   shall
specifically  state  otherwise at the time an Option is granted,  if an Employee
terminates his  employment  with the  Corporation  or a Subsidiary  Company as a
result of Disability or Retirement  without having fully  exercised his Options,
the Employee shall have the right,  during the one (1) year period following his
termination due to Disability or Retirement, to exercise such Options.

         Unless the Board or the Committee shall specifically state otherwise at
the  time  an  Option  is  granted,  if an  Employee  or  Non-Employee  Director
terminates  his  employment  or service  with the  Corporation  or a  Subsidiary
Company  following  a Change in  Control  without  having  fully  exercised  his
Options,  the Optionee  shall have the right to exercise such Options during the
remainder  of the original ten (10) year term (or five (5) year term for Options
subject to Section 8.09(b) hereof) of the Option from the date of grant.

         If an Optionee  dies while in the employ or service of the  Corporation
or a Subsidiary Company or terminates employment or service with the Corporation
or a Subsidiary Company as a result of Disability or Retirement and dies without
having fully exercised his Options, the

                                       7
<PAGE>

executors, administrators, legatees or distributees of his estate shall have the
right,  during the one (1) year period  following  his death,  to exercise  such
Options.

         In no event,  however,  shall any Option be  exercisable  more than ten
(10) years (or five (5) years for  Options  subject to Section  8.09(b)  hereof)
from the date it was granted.

         8.05 Nonassignability. Options shall not be transferable by an Optionee
except by will or the laws of descent or distribution,  and during an Optionee's
lifetime shall be exercisable  only by such Optionee or the Optionee's  guardian
or legal representative.  Notwithstanding the foregoing,  or any other provision
of this Plan,  an Optionee who holds  Non-Qualified  Options may  transfer  such
Options to his or her spouse,  lineal ascendants,  lineal  descendants,  or to a
duly  established  trust for the  benefit  of one or more of these  individuals.
Options so transferred  may  thereafter be transferred  only to the Optionee who
originally  received the grant or to an individual or trust to whom the Optionee
could have  initially  transferred  the Option  pursuant to this  Section  8.05.
Options which are transferred pursuant to this Section 8.05 shall be exercisable
by the  transferee  according to the same terms and conditions as applied to the
Optionee.

         8.06 Manner of  Exercise.  Options may be exercised in part or in whole
and at one time or from time to time.  The  procedures for exercise shall be set
forth in the written Stock Option Agreement provided for in Section 8.01 above.

         8.07  Payment for  Shares.  Payment in full of the  purchase  price for
shares of Common Stock purchased pursuant to the exercise of any Option shall be
made to the Corporation  upon exercise of the Option.  All shares sold under the
Plan shall be fully paid and  nonassessable.  Payment  for shares may be made by
the  Optionee (i) in cash or by check,  (ii) by delivery of a properly  executed
exercise notice,  together with  irrevocable  instructions to a broker to sell a
sufficient  number of shares and then to properly deliver to the Corporation the
amount of sale  proceeds  to pay the  exercise  price,  all in  accordance  with
applicable  laws and  regulations,  (iii) at the  discretion of the Board or the
Committee,  by  delivering  shares of Common Stock  (including  shares  acquired
pursuant  to the  exercise  of an  Option)  equal  in Fair  Market  Value to the
purchase price of the shares to be acquired pursuant to the Option,  (iv) at the
discretion of the Board or the Committee,  by withholding  some of the shares of
Common Stock which are being  purchased  upon exercise of an Option,  or (v) any
combination of the foregoing. With respect to subclause (iii) hereof, the shares
of Common Stock  delivered  to pay the purchase  price must have either been (x)
purchased  in open  market  transactions  or (y)  issued by the  Corporation  or
pursuant  to a plan  thereof,  in each case more  than six  months  prior to the
exercise date of the Option.

         8.08 Voting and Dividend  Rights.  No Optionee shall have any voting or
dividend  rights or other  rights of a  stockholder  in respect of any shares of
Common Stock covered by an Option prior to the time that his name is recorded on
the  Corporation's  stockholder  ledger as the  holder of record of such  shares
acquired pursuant to an exercise of an Option.

                                       8
<PAGE>

         8.09  Additional  Terms  Applicable  to Incentive  Stock  Options.  All
Options  issued under the Plan as Incentive  Stock  Options will be subject,  in
addition  to the  terms  detailed  in  Sections  8.01 to 8.08  above,  to  those
contained in this Section 8.09.

              (a) Amount  Limitation.  Notwithstanding  any contrary  provisions
contained  elsewhere  in this Plan and as long as required by Section 422 of the
Code,  the aggregate  Fair Market Value,  determined as of the time an Incentive
Stock Option is granted,  of the Common  Stock with  respect to which  Incentive
Stock  Options are  exercisable  for the first time by the  Optionee  during any
calendar year under this Plan,  and stock options that satisfy the  requirements
of Section 422 of the Code under any other stock option plan or plans maintained
by the  Corporation  (or any  parent or  Subsidiary  Company),  shall not exceed
$100,000.

              (b)  Limitation  on Ten Percent  Stockholders.  The price at which
shares of Common Stock may be  purchased  upon  exercise of an  Incentive  Stock
Option granted to an individual  who, at the time such Incentive Stock Option is
granted, owns, directly or indirectly,  more than ten percent (10%) of the total
combined  voting  power of all classes of stock  issued to  stockholders  of the
Corporation or any Subsidiary Company, shall be no less than one hundred and ten
percent  (110%) of the Fair Market  Value of a share of the Common  Stock of the
Corporation at the time of grant,  and such Incentive  Stock Option shall by its
terms not be exercisable  after the earlier of the date determined under Section
8.04 or the  expiration  of five (5) years  from the date such  Incentive  Stock
Option is granted.

              (c) Notice of Disposition;  Withholding; Escrow. An Optionee shall
immediately notify the Corporation in writing of any sale, transfer,  assignment
or other disposition (or action constituting a disqualifying  disposition within
the meaning of Section 421 of the Code) of any shares of Common  Stock  acquired
through  exercise of an Incentive  Stock Option,  within two (2) years after the
grant  of such  Incentive  Stock  Option  or  within  one  (1)  year  after  the
acquisition  of such shares,  setting forth the date and manner of  disposition,
the  number  of  shares  disposed  of and the price at which  such  shares  were
disposed of. The Corporation shall be entitled to withhold from any compensation
or other  payments then or thereafter due to the Optionee such amounts as may be
necessary  to satisfy any  withholding  requirements  of federal or state law or
regulation  and,  further,  to collect from the Optionee any additional  amounts
which may be required for such purpose.  The Committee  may, in its  discretion,
require  shares of Common  Stock  acquired  by an Optionee  upon  exercise of an
Incentive  Stock Option to be held in an escrow  arrangement  for the purpose of
enabling compliance with the provisions of this Section 8.09(c).

                                   ARTICLE IX
                         ADJUSTMENTS FOR CAPITAL CHANGES

         9.01  General  Adjustments.  The  aggregate  number of shares of Common
Stock  available for issuance under this Plan, the number of shares to which any
outstanding  Award relates,  the maximum number of shares that can be covered by
Awards  granted to a person in any calendar  year,  and the  exercise  price per
share of Common  Stock under any  outstanding  Option  shall be  proportionately
adjusted for any increase or decrease in the total number of outstanding

                                       9
<PAGE>

shares of Common  Stock issued  subsequent  to the  Effective  Date of this Plan
resulting  from a split,  subdivision  or  consolidation  of shares or any other
capital  adjustment,  the  payment of a stock  dividend,  or other  increase  or
decrease in such shares effected  without receipt or payment of consideration by
the Corporation.

         9.02 Adjustments for Mergers and Other Corporate Transactions. If, upon
a merger, consolidation,  reorganization,  liquidation,  recapitalization or the
like of the Corporation,  the shares of the Corporation's  Common Stock shall be
exchanged for other  securities of the  Corporation  or of another  corporation,
each Award shall be converted, subject to the conditions herein stated, into the
right to purchase or acquire  such number of shares of Common Stock or amount of
other  securities  of  the  Corporation  or  such  other   corporation  as  were
exchangeable  for the number of shares of Common Stock of the Corporation  which
such  Optionees  would have been entitled to purchase or acquire except for such
action,  and  appropriate  adjustments  shall be made to the per share  exercise
price of outstanding Options, provided that in each case the number of shares or
other  securities  subject to the  substituted  or assumed  stock option and the
exercise  price  thereof  shall be  determined  in a manner that  satisfies  the
requirements of Treasury Regulation  ss.1.424-1 and the regulations issued under
Section 409A of the Code so that the substituted or assumed option is not deemed
to be a modification of the outstanding  Options.  Notwithstanding any provision
to the  contrary  herein,  the  term of any  Option  granted  hereunder  and the
property  which the Optionee  shall  receive  upon the  exercise or  termination
thereof  shall be subject to and be governed  by the  provisions  regarding  the
treatment of any such Options set forth in a definitive  agreement  with respect
to any of the aforementioned transactions entered into by the Corporation to the
extent any such Option remains  outstanding and unexercised upon consummation of
the transactions contemplated by such definitive agreement.

                                    ARTICLE X
                      AMENDMENT AND TERMINATION OF THE PLAN

         The Board may, by  resolution,  at any time terminate or amend the Plan
with  respect to any  shares of Common  Stock as to which  Awards  have not been
granted,  subject  to any  required  stockholder  approval  or  any  stockholder
approval  which the Board may deem to be advisable  for any reason,  such as for
the purpose of obtaining or retaining any statutory or regulatory benefits under
tax,  securities  or other laws or  satisfying  any  applicable  stock  exchange
listing requirements. The Board may not, without the consent of the holder of an
Award,  alter or impair any Award previously  granted or awarded under this Plan
except as specifically authorized herein. Notwithstanding any other provision of
the Plan to the contrary, in the event that the Board determines, after a review
of  Section  409A  of the  Code  and all  applicable  Internal  Revenue  Service
guidance,  that the Plan or any  provision  thereof  or any Award is  subject to
Section  409A  of the  Code,  the  Board  may  amend  the  Plan  or  the  Award,
retroactively  if necessary,  to make any changes required for it to comply with
Section 409A of the Code.

                                       10
<PAGE>

                                   ARTICLE XI
                          EMPLOYMENT AND SERVICE RIGHTS

         Neither the Plan nor the grant of any Awards  hereunder  nor any action
taken by the Committee or the Board in connection with the Plan shall create any
right on the part of any Employee or  Non-Employee  Director to continue in such
capacity.

                                   ARTICLE XII
                                   WITHHOLDING

         12.01 Tax  Withholding.  The  Corporation  may  withhold  from any cash
payment  made  under  this  Plan  sufficient  amounts  to cover  any  applicable
withholding  and  employment  taxes,  and if the amount of such cash  payment is
insufficient, the Corporation may require the Optionee to pay to the Corporation
the amount  required  to be withheld as a  condition  to  delivering  the shares
acquired  pursuant to an Award.  The  Corporation  also may  withhold or collect
amounts with respect to a  disqualifying  disposition  of shares of Common Stock
acquired  pursuant to  exercise of an  Incentive  Stock  Option,  as provided in
Section 8.09(c).

         12.02  Methods  of Tax  Withholding.  The  Board  or the  Committee  is
authorized  to adopt rules,  regulations  or  procedures  which  provide for the
satisfaction  of an Optionee's  tax  withholding  obligation by the retention of
shares of  Common  Stock to which  the  Employee  would  otherwise  be  entitled
pursuant  to an Award  and/or by the  Optionee's  delivery  of  previously-owned
shares of Common Stock or other property.

                                  ARTICLE XIII
                        EFFECTIVE DATE OF THE PLAN; TERM

         13.01 Effective Date of the Plan.  This Plan as originally  adopted was
effective as of the Effective Date, and Awards may be granted hereunder no later
than the termination of the Plan. The  stockholders of the Corporation  approved
this Plan as  originally  adopted at a meeting held on January 24, 2001 pursuant
to Article XIV hereof.  The amendment and  restatement  of this Plan was adopted
effective as of the date set forth in Article I above.

         13.02  Term of the Plan.  Unless  sooner  terminated,  this Plan  shall
remain in effect for a period of ten (10) years ending on the tenth  anniversary
of the  Effective  Date.  Termination  of the Plan  shall not  affect any Awards
previously  granted and such Awards  shall remain valid and in effect until they
have been fully exercised or earned, are surrendered or by their terms expire or
are forfeited.

                                       11
<PAGE>

                                   ARTICLE XIV
                              STOCKHOLDER APPROVAL

         The  stockholders of the  Corporation  approved this Plan as originally
adopted at a meeting of  stockholders  of the  Corporation  held on January  24,
2001, which was within twelve (12) months following the Effective Date, in order
to  meet  the  requirements  of (i)  Section  422 of the  Code  and  regulations
thereunder,  (ii) Section  162(m) of the Code and  regulations  thereunder,  and
(iii) the National Association of Securities Dealers,  Inc. for quotation of the
Common Stock on the Nasdaq Stock Market.

                                   ARTICLE XV
                                  MISCELLANEOUS

         15.01  Governing  Law. To the extent not governed by federal law,  this
Plan shall be construed under the laws of the Commonwealth of Pennsylvania.

         15.02  Pronouns.  Wherever  appropriate,  the  masculine  pronoun shall
include the feminine pronoun, and the singular shall include the plural.

                                       12

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