Management Incentive Compensation Plan

ABINGTON SAVINGS BANK


MANAGEMENT INCENTIVE
COMPENSATION PROGRAM


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ABINGTON SAVINGS BANK


Management Incentive Compensation Program


PURPOSE


* Reward key managers for the attainment of Abington Savings Bank
strategic, operational and service quality objectives; serve as a
basis for communications and rewarding attainment of business
objectives.


* Ensure an effective link between incentive compensation levels and
Bank performance by ensuring that incentive awards are only paid when
profitability objectives determined by the Board are met;


* Reinforce team performance; and


* Ensure Abington Savings Bank's management compensation program is
competitive with the marketplace and similar organizations.


MECHANICS


Plan must be approved by Board of Directors and will be administered by
Compensation Committee.


Prior to the payment of any bonus, unless approved by the Board of
Directors, the Bank must achieve its goals as outlined in the year's
performance plans.


The bonus will be awarded based upon the achievement of the Bank's budget
or financial plan, its performance against its peers**, the individual
participant's success in accomplishing the goals and objectives as outlined
in his/her performance plan and Service Level Agreements. Unit
profitability goals will also be evaluated as part of the program.


Compensation Committee will:


* Review the annual business plan/budget to determine its
appropriateness for purposes of the Part A calculation


* Approve participants


* Select peer group


* Review management recommendations for Part D awards


* Recommend final awards to Board of Directors


The Committee may also need to recommend alterations to the plan as necessary. For example, the acquisition of another institution may cause a revision of the financial performance incentive plan or a complete change in a manager's objectives. Some latitude for such positive changes must be maintained so that the incentive does not become a disincentive.


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The Committee will be authorized to recommend bonuses to staff members not included in this plan and to approve additional participants to the plan.


The calculation of a participant's bonus will be as follows:


Group I - Participants


A. Financial performance of bank 40.0% B. Service Quality 16.7% C. Bank performance vs. peer group 20.0% D. Evaluation of achievement of strategic
and/or performance plan and unit
profitability. 23.3%
------
100.0%


Group II ...