Severance Agreement

May 6, 2003



THIS AGREEMENT INCLUDES A GENERAL RELEASE OF CLAIMS.

FEEL FREE TO TAKE 21 DAYS TO CONSIDER THIS AGREEMENT BEFORE

SIGNING IT. WE ALSO ADVISE YOU TO CONSULT A LAWYER PRIOR TO

SIGNING THIS AGREEMENT.

YOU HAVE 7 DAYS AFTER YOU SIGN THIS AGREEMENT TO REVOKE IT.

SEVERANCE AGREEMENT CONTAINING

GENERAL RELEASE OF EMPLOYEE92S RIGHTS

This Severance Agreement Containing a General Release of my Rights (Agreement) is entered into between myself, Robert M. Lallo, Holliston, MA 01746 ("Mr. Lallo"), and the Abington Bancorp, Inc. (Abington Bancorp, Inc., together with its direct and indirect subsidiaries is hereinafter referred to as "Abington Savings Bank"), on the date on which I sign it. In consideration of the covenants undertaken, the releases contained in this Agreement, and the promises made in this Agreement, the Abington Savings Bank and I hereby agree as follows:

1. Employment Separation. My employment with the Abington Savings Bank will terminate on the date on which Abington Bancorp, Inc. files it Annual Report on Form 10-K for the year ended December 31, 2002 with the Securities and Exchange Commission (" Separation Date"), May 15, 2003.

2. Severance Payment. In return for the execution of this Agreement and Release, the Abington Savings Bank agrees to pay me ten (10) months of severance pay at my current rate of pay, less applicable withholding taxes and other ordinary payroll deductions ("applicable deductions"). These payments will be made in the normal payroll cycles of Abington Savings Bank, commencing with the first payroll cycle following the later of (i) the revocation period described in Section 15 below and (ii) the Separation Date ("Severance Payments").

3. Benefits Eligibility. In addition to the severance payments described above, also in exchange for the execution of this Agreement, for the period of time that I am receiving Severance Payments, Abington Savings Bank will also make contributions towards my medical insurance premiums so long as I am both eligible for and enrolled in the Abington Savings Bank92s medical plan on my separation date. The contributions which the Abington Savings Bank will make toward my health insurance premiums will be for only so long as I am receiving Severance Payments in accordance with this Agreement, and will be in an amount equal to that which was made by the Abington Savings Bank on my behalf while I was an employee. I agree and acknowledge that I shall remain responsible for the payment of my share of the insurance premium for said medical insurance. I agree that the Abington Savings Bank should deduct my portion of the health insurance from my severance payments. The parties understand and agree that I will be provided with COBRA notification upon conclusion of my severance



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payments.





4. Acknowledgment. I acknowledge that the benefits provided under this Agreement are more than I would have received in the absence of my signing this Agreement and giving the Release contained within. I understand that I am eligible to receive any earned and unused vacation time that I have available under Abington Savings Bank92s policy, regardless of whether or not I sign this Agreement. I also understand that Abington Savings Bank has agreed to pay me until the Separation Date, regardless of whether or not I choose to enter into this Agreement.

5. Confidentiality.

a. To the extent permitted by law, I shall not disclose to any third party secrets or any other financial or business information relating to the Abington Savings Bank of a kind which is not disclosed publicly in the ordinary course of business, except if I am required to disclose such information pursuant to subpoena, to assist in a lawful fraud investigation, or by other compulsory legal process. If I receive a subpoena, other legal process or a request which seeks information about the Abington Savings Bank I shall, where permitted by law, immediately notify the Abington Savings Bank of that fact prior to responding to such legal process or request.

b. I shall not disclose to any person other than my attorney and accountant the benefits provided for in this Agreement, or the existence of or content of this Agreement or any discussions concerning, regarding, relating to, or leading up to this Agreement. If I disclose information related to this Agreement to my attorney or accountant, I shall obtain from each of them their agreement to be bound by this confidentiality provision prior to disclosing to them any information covered by this confidentiality provision.

c. I shall immediately return to the Abington Savings Bank any and all property of the Abington Savings Bank in my possession, custody or control, including without limitation, any documents or other materials, regardless of format, which pertain to the operations of Abington Savings Bank.

6. Conduct. I agree that I will not engage in any conduct that is injurious to the reputation or interests of the Abington Savings Bank, or any of the Abington Savings Bank Releasees as defined below, including but not limited to disparaging the Abington Savings Bank or any Abington Savings Bank Releasees, unless otherwise required by law. Abington Savings Bank agrees that it will not undertake any action for the purpose of causing injury to my reputation or interests, unless otherwise required by law.

7. Return of Bank Property. I acknowledge and agree that I have returned all



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Abington Saving ...