Exhibit
10.1


 


EMPLOYMENT
AGREEMENT


 


This Employment
Agreement (the “Agreement”) is made and entered into, effective as of the 1st day day of March, 2021 (the
 “Effective Date”), by and between Prosper Bank, a Pennsylvania-chartered savings bank (the
 “Bank”) and Janak M. Amin (the “Executive”). Any reference to the “Company”
shall mean PB Bankshares, Inc., the holding company of the Bank, or any successor thereto.


 


RECITALS


 


WHEREAS, the
Bank desires to continue to employ the Executive in an executive capacity in the conduct of its businesses, and the Executive desires
to be so employed on the terms contained in this Agreement;


 


NOW, THEREFORE,
in consideration of the mutual covenants herein contained, and upon the other terms and conditions hereinafter provided, the parties
hereby agree as follows:


 


1.             POSITION AND RESPONSIBILITIES.


 


(a)       Employment.
During the Term (as defined in Section 2(a)) of this Agreement, the Executive agrees to serve as President and Chief Executive
Officer of the Bank and the Company or any successor executive position with the Bank and the Company that is consented to, in
writing, by the Executive (the “Executive Position”), and will perform the duties of and have all powers associated
with the Executive Position as are appropriate for a person in the position of the Executive Position, as well as those as shall
be assigned by the Board of Directors of the Bank (the “Board of Directors”). As President and Chief Executive
Officer, the Executive will report directly to the Board of Directors. During the period provided for in this Agreement, the Executive
also agrees to serve, if elected, as an officer, director or trustee of any subsidiary or affiliate of the Bank and in such capacity
to carry out the duties and responsibilities reasonably appropriate to any such position.


 


(b)       Responsibilities.
During the Executive’s employment hereunder, the Executive will be employed on a full-time basis and devote the Executive’s
full business time and best efforts, business judgment, skill and knowledge to the performance of the Executive’s duties
and responsibilities related to the Executive Position. Except as otherwise provided in Section 1(c), or as may be approved by
the Board of Directors, the Executive will not engage in any other business activity during the term of this Agreement.


 


(c)       Service
on Other Boards and Committees. The Bank encourages participation by the Executive on community boards and committees and
in activities generally considered to be in the public interest, but the Board of Directors shall have the right to approve or
disapprove, in its sole discretion, the Executive’s participation on those boards and committees.


 


2.             TERM.


 


(a)        Term
and Annual Renewal. The initial term of this Agreement will begin as of the Effective Date and continue for a period of
three years (the “Term”). Commencing on the first anniversary of the Effective Date and continuing on each
subsequent anniversary of the Effective Date (each anniversary referred to as a “Renewal Date”), the Term will
extend automatically for one additional year, so that the Term will be three (3) years from the applicable Renewal Date, unless
either the Bank or the Executive, by written notice to the other given at least thirty (30) days prior to the Renewal Date, notifies
the other of its intent not to extend the Term. In the event either party provides notice not to extend the Term, the Term will
become fixed and terminate as of the last day of the then current Term. For avoidance of doubt, any extension to the Term will
become the new “Term” for purposes of this Agreement.


 



     


     


    




 


At least thirty (30)
days prior to a Renewal Date, the disinterested members of the Board of Directors will conduct a comprehensive performance evaluation
and review of the Executive for purposes of determining whether to take action regarding non-renewal of the Agreement, and the
results thereof will be included in the minutes of the meeting of the Board of Directors.


 


(b)       Change
in Control. Notwithstanding the foregoing, in the event the Bank or the Company has entered into an agreement to effect
a transaction that would be considered a Change in Control, as defined in Section 5, the Term of this Agreement will automatically
extend so that it expires no sooner than two (2) years beyond the effective date of the Change in Control, subject to extensions
as set forth in Section 2(a).


 


(c)       Continued
Employment Following Expiration of Term. Nothing in this Agreement will mandate or prohibit a continuation of the Executive’s
employment following the expiration of the Term of this Agreement.


 


3.             COMPENSATION, BENEFITS AND REIMBURSEMENT.


 


(a)       Base
Salary. In consideration of the Executive’s performance of the responsibilities and duties set forth in this Agreement,
the Executive will receive an annual base salary of $220,000 per year (“Base Salary”). The Bank will pay the
Base Salary in accordance with its customary payroll practices. During the term of this Agreement, the Board of Directors (or the
Compensation Committee of the Board of Directors (the “Compensation Committee”)) may increase, but not decrease,
the Executive’s Base Salary. Any increase in Base Salary will become the new “Base Salary” for purposes of this
Agreement.


 


(b)       Bonus
and Incentive Compensation. The Executive (1) is eligible to participate in any bonus plan or arrangement of the Bank in
which senior management is eligible to participate, pursuant to which a bonus may be paid to the Executive in accordance with the
plan or arrangement; and/or (2) may receive a bonus, if any, on a discretionary basis, as determined by the Board of Directors
or the Compensation Committee.


 


(c)       Benefit
Plans. The Executive will be entitled to participate in all employee benefit plans, arrangements and perquisites
offered to senior management of the Bank, on terms and conditions no less favorable than the plans, arrangements and
perquisites are available to other members of senior management of the Bank. Without limiting the generality of the foregoing
provisions of this Section 3(c), the Executive also will be entitled to participate in any employee benefit plans
including but not limited to retirement plans, pension plans, profit-sharing plans, health-and-accident plans, or any other
employee benefit plan or arrangement made available by the Bank in the future to management employees, subject to and on a
basis consistent with the terms, conditions and overall administration of the plans and arrangements as applicable to other
management employees.


 






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(d)       Leave
and Paid Time Off. The Executive will be entitled to paid time off each year during the term of this Agreement measured
on a calendar year basis, in accordance with the Bank’s customary practices and in accordance with the Bank’s policies
and procedures for officers, provided, however, that the Executive will be entitled to a minimum of twenty-six (26) days of paid
time off each year, in addition to all holidays observed by the Bank. Any unused paid time off during an annual period will be
treated in accordance with the Bank’s personnel policies as in effect from time to time.


 


(e)        Automobile.
The Executive will be entitled to the use of a Bank purchased or leased automobile of the make
and model as may be mutually agreed upon by the Board of Directors and the Executive. The automobile will be available for the
Executive’s personal use. The Executive will also be entitled to reimbursement for all operating expenses of the automobile
upon substantiation of the expenses in accordance with applicable policies and procedures of the Bank. The Executive will maintain
records of business and personal use to insure compliance with IRS regulations and the Bank will report personal use for income
tax purposes. Any income attributable to the personal use of the automobile will not be taken into account in determining any
incentive compensation or any benefit based on the compensation of the Executive.


 


(f)       Expense
Reimbursements. The Bank will reimburse the Executive for all reasonable travel, entertainment and other expenses incurred
by the Executive in performing the Executive’s obligations under this Agreement, including, without limitation, fees for
memberships in organizations that the Executive and the Board of Directors or the Compensation Committee mutually agree are necessary
and appropriate in connection with the performance of the Executive’s duties under this Agreement. All reimbursements will
be made as soon as practicable upon substantiation of the expenses by the Executive in accordance with the applicable policies
and procedures of the Bank and, in any event, not later than the last day of the calendar year immediately following the calendar
year in which the Executive incurred the expense.


 


	4.	TERMINATION AND TERMINATION PAY.



 


Subject to Section
5, which governs the occurrence of a Change in Control, the Executive’s employment under this Agreement will terminate under
the circumstances set forth in this Section 4.


 


(a)       Definition
of Accrued Obligations. For purposes of this Agreement, the term “Accrued Obligations” means the
sum of: (i) any Base Salary earned but unpaid through the Executive’s Date of Termination, (ii) unpaid expense
reimbursements (subject to, and in accordance with, Section 3(f)), (iii) unused paid time off accrued through the Date of
Termination (subject to an in accordance with Section 3(d)), (iv) any earned but unpaid short-term and long-term incentive
compensation for the year immediately preceding the year of termination and (v) any vested benefits the Executive may have
under any employee benefit plan of the Bank through the Date of Termination, which vested benefits will be paid and/or
provided in accordance with the terms of the employee benefit plans. Unless otherwise provided by the applicable employee
benefit plan, the Accrued Obligations, if any, will be paid to the Executive (or the Executive’s estate or beneficiary)
within thirty (30) days following the Executive’s Date of Termination.


 






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(b)         Death.
This Agreement and the Executive’s employment with the Bank will terminate upon the Executive’s death, in which event
the Bank’s sole obligation will be to pay or provide the Executive’s estate or beneficiary any Accrued Obligations.


 


(c)        Disability.
The Bank shall be entitled to terminate the Executive’s employment and this Agreement due to the Executive’s Disability.
If the Bank terminates the Executive’s employment due to the Executive’s Disability, the Bank’s sole obligation
under this Agreement shall be to pay or provide the Executive any Accrued Obligations. For purposes of this Agreement, the term
 “Disability” means the Executive is deemed disabled for purposes of the Bank’s long-term disability plan
or policy that covers the Executive or is determined to be disabled by the Social Security Administration.


 


(d)       Termination
for Cause. The Board of Directors may immediately terminate the Executive’s employment and this Agreement at any
time for “Cause.” In the event the Executive’s employment is terminated for Cause, the Bank’s sole obligation
will be to pay or provide to the Executive any Accrued Obligations. For purposes of this Agreement, the term “Cause”
means termination because of, in the good faith determination of the Board of Directors, the Executive’s:


 


(i)       material
act of dishonesty or fraud in performing duties on behalf of the Bank or the Company;


 


(ii)     willful
misconduct that in the judgment of the Board of Directors will likely cause economic damage to the Bank or the Company or injury
to the business reputation of the Bank or the Company;


 


(iii)     breach
of a fiduciary duty involving personal profit;


 


(iv)     intentional
failure to perform stated duties after written notice from the Board of Directors and the Executive’s failure to take corrective
or curative action within two (2) weeks thereafter;


 


(v)     willful
violation of any law, rule or regulation (other than traffic violations or similar offenses that results only in a fine or other
non-custodial penalty) that reflect adversely on the reputation of the Bank or the Company; any felony conviction, any violation
of law involving moral turpitude, or any violation of a final cease-and-desist order; or any violation of the policies and procedures
of the Bank as outlined in the Bank’s employee handbook, which would result in termination of the Bank employees, as from
time to time amended and incorporated herein by reference; or


 


(vi)     material
breach of any provision of this Agreement.


 


Any determination
of Cause under this Agreement will be made by resolution adopted by at least three-quarters (3/4) vote of the disinterested
members of the Board of Directors at a meeting called and held for that purpose. The Executive will be provided with
reasonable notice of the meeting and the Executive will be given an opportunity to be heard before a vote is taken by the
disinterested members of the Board of Director regarding the termination of employment.


 






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(e)       Resignation
by Executive without Good Reason. The Executive may resign from employment during the term of this Agreement without Good
Reason upon at least thirty (30) days prior written notice to the Board of Directors, provided, however, that the Bank may accelerate
the Date of Termination upon receipt of written notice of the Executive’s resignation. In the event the Executive resigns
without Good Reason, the Bank’s sole obligation under this Agreement will be to pay or provide any Accrued Obligations to
the Executive.


 


(f)       Termination
Without Cause or With Good Reason.


 


		(i)	The Board of Directors may immediately terminate the Executive’s employment at any time for
a reason other than Cause (a termination “Without Cause”), and the Executive may, by written notice to the Board
of Directors, terminate his employment at any time within ninety (90) days following an event constituting “Good Reason”
(a termination “With Good Reason”); provided, however, that the Bank will have thirty (30) days to cure the
 “Good Reason” condition, but the Bank may waive its right to cure. In the event of a termination employment described
under this Section 4(f)(i) during the Term and subject to the requirements of Section 4(f)(iii), the Bank will pay or provide the
Executive the following:



 


(A)           any
Accrued Obligations;


 


(B)            a gross cash payment equal to the remaining Base Salary and bonus opportunity (based on the highest bonus for the three
most recently completed calendar years prior to the Executive’s Date of Termination) that would have been paid to the Executive
during the remaining Term of the Agreement; payable in a lump sum within sixty (60) days of the Executive’s Date of Termination;
and


 


(C)            a cash lump sum payment reasonably estimated to be equal to the value of twenty-four (24) months of continued non-taxable
medical and dental coverage substantially comparable to (and on substantially the same terms and conditions) to the coverage maintained
by the Bank for the Executive and his dependents immediately prior to his Date of Termination, payable within sixty (60) days of
the Executive’s Date of Termination.


 


		(ii)	“Good Reason” exists if, without the
Executive’s express written consent, any of the following occur:



 


		(A)	a material reduction in the Executive’s Base Salary and/or aggregate incentive compensation
opportunities under the Bank’s annual and long-term incentive plans or programs, as applicable;



 


		(B)	a material reduction in the Executive’s authority, duties or responsibilities from the position
and attributes associated with the Executive Position;



 






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		(C)	a relocation of the Executive’s principal place of employment by more than thirty-five (35)
miles from the Bank’s main office; or



 


		(D)	a material breach of this Agreement by the Bank.



 


		(iii)	Notwithstanding anything to the contrary in Section 4(f)(i), the Executive will not receive any
payments or benefits under Sections 4(f)(i)(B) or 4(f)(i)(C) unless and until the Executive executes a release of claims (the “Release”)
against the Bank and any affiliate, and their officers, directors, successors and assigns, releasing said persons from any and
all claims, rights, demands, causes of action, suits, arbitrations or grievances relating to the employment relationship, including
claims under the Age Discrimination in Employment Act, but not including claims for benefits under tax-qualified plans or other
benefit plans in which the Executive is vested, claims for benefits required by applicable law or claims with respect to obligations
set forth in this Agreement that survive the termination of this Agreement. The Release must be executed and become irrevocable
by the 60th day following the Date of Termination, provided that if the 60-day period spans two (2) calendar years,
then, to the extent necessary to comply with Section 409A of the Internal Revenue Code of 1986, as amended (“Code”),
the payments and benefits described in this Section 4(f) will be paid, or commence, in the second calendar year.



 


(g)       Effect
on Status as a Director. In the event of the Executive’s termination of employment under this Agreement for any reason,
unless otherwise agreed to by the mutual consent of the Executive and the Board of Directors, the termination will also constitute
the Executive’s resignation as a director of the Bank and the Company, as well as a director or trustee of any subsidiary
or affiliate thereof, to the extent the Executive is acting as a director or trustee of any of the aforementioned entities.


 


(h)       Notice;
Effective Date of Termination. Any Notice of Termination of employment under this Agreement must be communicated by or
to the Executive or the Bank, as applicable, in accordance with Section 17. For purposes of this Agreement, the term “Date
of Termination” means the Executive’s termination of employment pursuant to this Agreement, which will be effective
on the earliest of: (i) immediately after the Bank gives notice to the Executive of the Executive’s termination Without Cause,
unless the parties agree to a later date, in which case, termination will be effective as of such later date; (ii) immediately
upon approval by the Board of Directors of termination of the Executive’s employment for Cause; (iii) immediately upon the
Executive’s death or Disability; (iv) thirty (30) days after the Executive gives written notice to the Bank of the Executive’s
resignation from employment (including With Good Reason), provided that the Bank may set an earlier termination date at any time
prior to the date of termination of employment, in which case the Executive’s resignation shall be effective as of that date;
or (v) in the event of the Executive’s termination With Good Reason due to a material reduction in Base Salary, the date
on which the Executive provides Notice of Termination in accordance with Section 4(f)(i).


 






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	5.	CHANGE IN CONTROL.



 


(a)       Change
in Control Defined. For purposes of this Agreement, the term “Change in Control” means: (i) a change
in the ownership of the Corporation; (ii) a change in the effective control of the Corporation; or (iii) a change in the ownership
of a substantial portion of the assets of the Corporation as defined in accordance with Code Section 409A. For purposes of this
Section 5(a), the term “Corporation” means the Bank, the Company or any of their successors, as applicable.


 


		(i)	A change in the ownership of a Corporation occurs on the date that any one person, or more than
one person acting as a group (as defined in Treasury Regulation 1.409A-3(i)(5)(v)(B)), acquires ownership of stock of the Corporation
that, together with stock held by such person or group, constitutes more than fifty (50) percent of the total fair market value
or total voting power of the stock of the Corporation.



 


		(ii)	A change in the effective control of the Corporation occurs on the date that either (A) any one
person, or more than one person acting as a group (as defined in Treasury Regulation 1.409A-3(i)(5)(vi)(D)) acquires (or has acquired
during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the
Corporation possessing thirty (30) percent or more of the total voting power of the stock of the Corporation, or (B) a majority
of the members of the board of directors is replaced during any twelve (12) month period by directors whose appointment or election
is not endorsed by a majority of the members of the board of directors prior to the date of the appointment or election, provided
that this subsection “(B)” is inapplicable where a majority stockholder of the Corporation is another corporation.



 


		(iii)	A change in a substantial portion of the Corporation’s assets occurs on the date that any
one person or more than one person acting as a group (as defined in Treasury Regulation 1.409A-3(i)(5)(vii)(C)) acquires (or has
acquired during the twelve (12) month period ending on the date of the most recent acquisition by such person or persons) assets
from the Corporation that have a total gross fair market value equal to or more than forty (40) percent of the total gross fair
market value of (A) all of the assets of the Corporation, or (B) the value of the assets being disposed of, either of which is
determined without regard to any liabilities associated with such assets.



 


For all purposes hereunder,
the definition of Change in Control shall be construed to be consistent with the requirements of Treasury Regulation 1.409A-3(i)(5),
except to the extent that such regulations are superseded by subsequent guidance.


 


Notwithstanding anything
herein to the contrary, a Change in Control will not be deemed to have occurred for purposes of this Agreement in connection with
the Bank’s mutual-to-stock conversion.


 






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(b)       Change
in Control Benefits. Upon the termination of the Executive’s employment by the Bank or the Company (or any successor)
Without Cause or by the Executive With Good Reason during the Term on or within two years at or after the effective time of a Change
in Control, the Bank (or any successor) will pay or provide the Executive, or the Executive’s estate in the event of the
Executive’s subsequent death, with the following:


 


		(i)	any Accrued Obligations;



 


		(ii)	a gross payment (the “Change in Control Severance”) equal to three (3) times
the sum of the Executive’s: (A) Base Salary at the Date of Termination (or the Executive’s Base Salary in effect during
any of the prior three years, if higher); and (B) the highest annual cash bonus earned by the Executive for the calendar year in
which the Change in Control occurs or for any of the three (3) most recently completed calendar years prior to the Change Control;
payable in a lump sum within thirty (30) days of the Executive’s Date of Termination; and



 


		(iii)	a cash lump sum payment reasonably estimated to be equal to the value of twenty-four (24) months
of continued non-taxable medical and dental coverage substantially comparable to (and on substantially the same terms and conditions)
to the coverage maintained by the Bank for the Executive and his dependents immediately prior to his Date of Termination, payable
within thirty (30) days of the Executive’s Date of Termination.



 


Notwithstanding the
foregoing, the payments and benefits provided in this Section 5(b) will be payable to the Executive in lieu of any payments or
benefits that are payable under Section 4(f).


 


6.             COVENANTS
OF EXECUTIVE.


 


(a)       Non-Solicitation/Non-Compete.
The Executive hereby covenants and agrees that during the “Restricted Period,” the Executive will not, without
the written consent of the Bank, either directly or indirectly:


 


		(i)	solicit, offer employment to, or take any other action intended (or that a reasonable person acting
in like circumstances would expect) to have the effect of causing any officer or employee of the Bank, or any of its respective
subsidiaries or affiliates, to terminate his or her employment with the Bank and/or accept employment with another employer; or



 


		(ii)	become an officer, employee, consultant, director, trustee, independent contractor, agent,
                                                              joint venturer, partner or trustee of any savings bank, savings and loan association, savings and loan holding company,
                                                              credit union, bank or bank holding company, insurance company or agency, any mortgage or loan broker or any other entity that
                                                              competes with the business of the Bank or any of their direct or indirect subsidiaries or affiliates that: (A) has a
                                                              headquarters within twenty-five (25) miles of any office of the Bank (the “Restricted Territory”), or (B)
                                                              has one or more offices, but is not headquartered, within the Restricted
Territory, but in the latter case, only if the Executive would be employed, conduct business or have other responsibilities or
duties within the Restricted Territory; or



 


		(iii)	solicit, provide any information, advice or recommendation or take any other action intended (or
that a reasonable person acting in like circumstances would expect) to have the effect of causing any customer of the Bank to terminate
an existing business or commercial relationship with the Bank.



 



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The restrictions contained
in this Section 6(a) shall not apply in the event of the Executive’s termination of employment on or after the effective
time of a Change in Control.


 


For purposes of this
Section 6(a), the “Restricted Period” will be: (i) at all times during Executive’s period of employment
with the Bank; and (ii) except as provided above, during the period beginning on Executive’s Date of Termination and ending
on the one-year anniversary of the Date of Termination.


 


(b)      Confidentiality.
The Executive recognizes and acknowledges that the Executive has been and will be the recipient of confidential and proprietary
business information concerning the Bank, including without limitation, past, present, planned or considered business activities
of the Bank, and the Executive acknowledges and agrees that the Executive will not, during or after the term of the Executive’s
employment, disclose such confidential and proprietary information for any purposes whatsoever, except as may be expressly permitted
in writing signed by the Bank, or as may be required by regulatory inquiry, law or court order.


 


(c)       Information/Cooperation.
The Executive will, upon reasonable notice, furnish any information and assistance to the Bank as may be reasonably required by
the Bank, in connection with any litigation in which it or any of its subsidiaries or affiliates is, or may become, a party; provided,
however, that the Executive shall not be required to provide information or assistance with respect to any litigation between
the Executive and the Bank or any other subsidiaries or affiliates.


 


(d)      Reliance.
Except as otherwise provided, all payments and benefits to the Executive under this Agreement will be subject to the Executive’s
compliance with this Section 6, to the extent applicable. The parties hereto, recognizing that irreparable injury will result
to the Bank, its business and property in the event of the Executive’s breach of this Section 6, agree that, in the event
of any such breach by the Executive, the Bank will be entitled, in addition to any other remedies and damages available, to an
injunction to restrain the violation hereof by the Executive and all persons acting for or with the Executive. The Executive represents
and admits that the Executive’s experience and capabilities are such that the Executive can obtain employment in a business
engaged in other lines of business than the Bank, and that the enforcement of a remedy by way of injunction will not prevent Executive
from earning a livelihood. Nothing herein will be construed as prohibiting the Bank from pursuing any other remedies available
to them for such breach or threatened breach, including the recovery of damages from the Executive.


 






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7.             SOURCE OF PAYMENTS.


 


All payments provided
in this Agreement shall be timely paid by check or direct deposit from the general funds of the Bank (or any successor of the Bank).


 


8.             EFFECT ON PRIOR AGREEMENTS AND EXISTING BENEFITS PLANS.


 


This Agreement contains
the entire understanding between the parties hereto and supersedes any prior employment agreement between the Bank or any predecessor
of the Bank and the Executive, except that this Agreement shall not affect or operate to reduce any benefit or compensation inuring
to the Executive under another plan, program or agreement (other than an employment agreement) between the Bank and the Executive.


 


9.             NO ATTACHMENT; BINDING ON SUCCESSORS.


 


(a)       Except
as required by law, no right to receive payments under this Agreement shall be subject to anticipation, commutation, alienation,
sale, assignment, encumbrance, charge, pledge, or hypothecation, or to execution, attachment, levy, or similar process or assignment
by operation of law, and any attempt, voluntary or involuntary, to affect any such action shall be null, void, and of no effect.


 


(b)      The Bank shall require any successor or assignee, whether direct or indirect, by purchase, merger, consolidation or otherwise,
to all or substantially all the business or assets of the Bank, expressly and unconditionally to assume and agree to perform the
Bank’s obligations under this Agreement, in the same manner and to the same extent that the Bank would be required to perform
if no such succession or assignment had taken place. A successor’s failure to assent to this Agreement following a Change
in Control shall be deemed to be a material breach of this Agreement under Section 4(f) hereof.


 


10.           MODIFICATION
AND WAIVER.


 


(a)       This
Agreement may not be modified or amended except by an instrument in writing signed by the parties hereto.


 


(b)       No
term or condition of this Agreement shall be deemed to have been waived, nor shall there be any estoppel against the enforcement
of any provision of this Agreement, except by written instrument of the party charged with such waiver or estoppel. No such written
waiver shall be deemed a continuing waiver unless specifically stated therein, and each waiver shall operate only as to the specific
term or condition waived and shall not constitute a waiver of the term or condition for the future as to any act other than that
specifically waived.


 


11.           certain Applicable law.


 


Notwithstanding anything
herein contained to the contrary, the following provisions shall apply:


 


(a)       The
Bank may terminate the Executive’s employment at any time, but any termination by the Bank other than termination for
Cause shall not prejudice the Executive’s right to compensation or other benefits under this Agreement. The Executive
shall have no right to receive compensation or other benefits under this Agreement for any period after the Executive’s
termination for Cause, other than the Accrued Obligations.


 






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(b)       In
no event shall the Bank (nor any affiliate) be obligated to make any payment pursuant to this Agreement that is prohibited by Section
18(k) of the Federal Deposit Insurance Act (codified at 12 U.S.C. sec. 1828(k)), 12 C.F.R. Part 359, or any other applicable law.


 


(c)       Notwithstanding
anything in this Agreement to the contrary, to the extent that a payment or benefit described in this Agreement constitutes “non-qualified
deferred compensation” under Section 409A of the Code, and to the extent that the payment or benefit is payable upon the
Executive’s termination of employment, then the payments or benefits will be payable only upon the Executive’s “Separation
from Service.” For purposes of this Agreement, a “Separation from Service” will have occurred if the Bank
and the Executive reasonably anticipate that either no further services will be performed by the Executive after the Date of Termination
(whether as an employee or as an independent contractor) or the level of further services performed is less than fifty (50) percent
of the average level of bona fide services in the thirty-six (36) months immediately preceding the termination. For all purposes
hereunder, the definition of Separation from Service shall be interpreted consistent with Treasury Regulation Section 1.409A-1(h)(ii).


 


(d)       Notwithstanding
the foregoing, if the Executive is a “Specified Employee” (i.e., a “key employee” of a publicly
traded company within the meaning of Section 409A of the Code and the regulations issued thereunder) and any payment under this
Agreement is triggered due to the Executive’s Separation from Service, then solely to the extent necessary to avoid penalties
under Section 409A of the Code, no payment will be made during the first six (6) months following the Executive’s Separation
from Service. Rather, any payment which would otherwise be paid to the Executive during such period shall be accumulated and paid
to the Executive in a lump sum on the first day of the seventh month following the Separation from Service. All subsequent payments
shall be paid in the manner specified in this Agreement.


 


(e)       To
the extent not specifically provided in this Agreement, any compensation or reimbursements payable to Executive shall be paid or
provided no later than two and one-half (2.5) months after the calendar year in which such compensation is no longer subject to
a substantial risk of forfeiture within the meaning of Treasury Regulation Section 1.409A-1(d).


 


(f)       Each
payment pursuant to this Agreement is intended to constitute a separate payment for purposes Treasury Regulation Section 1.409A-2(b)(2).


 


(g)       Notwithstanding
anything in this Agreement to the contrary, the Executive understands that nothing contained in this Agreement limits the
Executive’s ability to file a charge or complaint with the Securities and Exchange Commission or any other federal,
state or local governmental agency or commission (“Government Agencies”) about a possible securities law
violation without approval of the Bank (or any affiliate). The Executive further understands that this Agreement does not
limit the Executive’s ability to communicate with any Government Agency or otherwise participate in any investigation
or proceeding that may be conducted by any Government Agency, including providing documents or other information, without
notice to the Bank (or any affiliate) related to the possible securities law violation. This Agreement does not limit the
Executive’s right to receive any resulting monetary award for information provided to any Government Agency. In
addition, pursuant to the Defend Trade Secrets Act of 2016, the Executive understands that an individual may not be held
criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (i) is
made (A) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney;
and (B) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or
other document that is filed under seal in a lawsuit or other proceeding.  Further, an individual who files a lawsuit
for retaliation by an employer for reporting a suspected violation of law may disclose the employer's trade secrets to the
attorney and use the trade secret information in the court proceeding if the individual (y) files any document containing the
trade secret under seal; and (z) does not disclose the trade secret, except pursuant to court order.


 






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12.           SEVERABILITY.


 


If any provision of
this Agreement is determined to be void or unenforceable, then the remaining provisions of this Agreement will remain in full force
and effect.


 


13.           GOVERNING
LAW.


 


This Agreement shall
be governed by the laws of the Commonwealth of Pennsylvania, but only to the extent not superseded by federal law.


 


14.           ARBITRATION.


 


Any
dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration, conducted
by a single arbitrator selected by the Bank (or in the case of arbitration following a Change in Control, selected by the Executive)
within fifty (50) miles of Coatesville, Pennsylvania, in accordance with the Commercial Rules of the American Arbitration Association
then in effect.  Judgment may be entered on the arbitrators’ award in any court having jurisdiction.  The above
notwithstanding, the Bank may seek injunctive relief in a court of competent jurisdiction in Pennsylvania to restrain any breach
or threatened breach of any provision of this Agreement, without prejudice to any other rights or remedies that may otherwise be
available to the Bank.


 


15.           INDEMNIFICATION.


 


The Bank will provide
the Executive (including the Executive’s heirs, executors and administrators) with coverage under a standard directors’
and officers’ liability insurance policy at its expense, and will indemnify the Executive (and the Executive’s heirs,
executors and administrators) in accordance with the charter and bylaws of the Bank and to the fullest extent permitted under applicable
law against all expenses and liabilities reasonably incurred by the Executive in connection with or arising out of any action,
suit or proceeding in which the Executive may be involved by reason of having been a trustee, director or officer of the Bank or
any subsidiary or affiliate of the Bank.


 


16.           TAX Withholding.


 


The Bank may
withhold from any amounts payable to the Executive hereunder all federal, state, local or other taxes that the Bank may
reasonably determine are required to be withheld pursuant to any applicable law or regulation (it being understood that
Executive is responsible for payment of all taxes in respect of the payments and benefits provided herein).


 






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17.           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 or if sent by facsimile or email, on the date it is actually received.


 


	 	To the Bank:	
        Prosper Bank

        185 East Lincoln Highway

        Coatesville, PA 19320

        Attention: Corporate Secretary

         

	 	To Executive:	Most recent address on file with the Bank


 


[Signature Page Follows]





 






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IN WITNESS WHEREOF,
the parties have executed this Agreement as of the date first written above.


 


By signing below, the
Bank and the Executive acknowledge and agree that: (1) this Agreement supersedes and replaces the Employment Agreement between
the Bank and the Executive dated September 30, 2019 (the “Prior Agreement”) as of the Effective Date; and (2)
the Prior Agreement shall terminate as of the Effective Date.


 


	 	PROSPER BANK
	 	 
	 	By:	/s/ Joseph Carroll
	 	Name:	Joseph Carroll
	 	Title:  	Chairman of the Board
	 	 
	 	EXECUTIVE
	 	 
	 	/s/ Janak M. Amin
	 	Janak M. Amin


 



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