X0202 4 2004-06-09 0001236964 KNBT BANCORP INC KNBT 0001247013 HUGHES DAVID W C/O KEYSTONE NAZARETH BANK & TRUST CO. 90 HIGHLAND AVENUE BETHLEHEM PA 18017 0 1 0 0 See Footnote (5) Common Stock 2004-06-09 4 M 0 2010 6.44 A 2668 D Common Stock 2004-06-09 4 S 0 2010 16.55 D 658 D Common Stock 36 I by ESOP Employee Stock Option (right to buy) 6.44 2004-06-09 4 M 0 2010 0 D 2003-10-31 2013-01-16 Common Stock 2010 9090 D Employee Stock Option (right to buy) 16.50 2014-05-06 Common Stock 17500 17500 D Employee Stock Option (right to buy) 4.27 2003-10-31 2011-06-21 Common Stock 10197 10197 D Employee Stock Option (right to buy) 5.78 2003-10-31 2012-01-17 Common Stock 9713 9713 D Includes 658 shares previously allocated to the Reporting Person's account in the First Colonial employee stock ownership plan, which have been distributed upon termination of the plan. Reflects allocation of ESOP shares since the last filed report. Received in the merger of First Colonial Group, Inc. into the Issuer in exchange for a stock option to acquire shares of First Colonial common stock. The options vest in five equal annual installments beginning on the first anniversary of the date of grant. (5) - Senior Vice President, Marketing, Public Relations and Community Development of Keystone Nazareth Bank & Trust Company (Issuer Subsidiary). David W. Hughes 2004-06-10