Document:

Exhibit 10.1

 

EXECUTION COPY

 

EMPLOYMENT
AGREEMENT

 

This Employment Agreement
(the “Agreement”) is made and entered into, effective as of April 6, 2017 (the “Effective Date”),
by and between Seneca Federal Savings and Loan Association (the “Bank”) and Joseph G. Vitale (“Executive”).
Any reference to the “Company” shall mean any newly-formed the stock holding company of the Bank, or any successor
thereto.

 

WHEREAS, the Bank
wishes to assure itself of the continued services of Executive for the period provided in this Agreement; and

 

WHEREAS, in order
to induce Executive to remain in the employ of the Bank and to provide further incentive for Executive to achieve the financial
and performance objectives of the Bank, the parties desire to enter into this Agreement; and

 

WHEREAS, the Bank
desires to set forth the rights and responsibilities of Executive and the compensation payable to Executive, as modified from time
to time.

 

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.

 

During the term of this
Agreement, Executive agrees to serve as President and Chief Executive Officer of the Bank (the “Executive Position”),
and will perform the duties and will have all powers associated with such position as set forth in any job description provided
to Executive by the Bank, and as may be set forth in the bylaws of the Bank. During the period provided in this Agreement, Executive
also agrees to serve, if elected, as an officer or director of any subsidiary or affiliate of the Bank and in such capacity carry
out such duties and responsibilities reasonably appropriate to that office.

 

		2.	TERM AND DUTIES.

 

(a)          Term
and Annual Renewal. The initial term of this Agreement and the period of Executive’s employment hereunder shall begin
as of the Effective Date and shall continue through December 31, 2019. Commencing on January 1, 2018 and continuing on each January
1st thereafter (the “Renewal Date”), this Agreement shall renew for an additional year such that
the remaining term shall be three (3) years, provided, however, that in order for this Agreement to renew, the disinterested members
of the Board of Directors of the Bank (the “Board”) must take the following actions within the time frames set
forth below prior to each Renewal Date: (1) at least 30 days prior to each Renewal Date, conduct a comprehensive performance evaluation
and review of Executive for purposes of determining whether to extend this Agreement; and (2) affirmatively approve the renewal
or non-renewal of this Agreement, which such decision shall be included in the minutes of the Board’s meeting. If the decision
of the disinterested members of the Board is not to renew this Agreement, then the Board shall provide Executive with a written
notice of non-renewal (the “Non-Renewal Notice”) at least 15 days prior to any Renewal Date, such that this
Agreement shall terminate at the end of 24 months following such Renewal Date. The failure of the disinterested members of the
Board to take the actions set forth herein before

 

     

     

    

 

any Renewal Date will result in the automatic
non-renewal of this Agreement, even if the Board fails to affirmatively issue the Non-Renewal Notice to Executive. If the Board
fails to inform Executive of its determination regarding the renewal or non-renewal of this Agreement, Executive may request, in
writing, the results of the Board’s action (or non-action) and the Board shall, within 10 days of the receipt of such request,
provide a written response to Executive. Reference herein to the term of this Agreement shall refer to both such initial term and
such extended terms.

 

(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 under Section 5 hereof, the term of this Agreement shall
be extended automatically so that it is scheduled to expire no less than three (3) years beyond the effective date of the Change
in Control, subject to extensions as set forth above.

 

(c)          Membership
on Other Boards or Organizations. During the period of his employment hereunder, except for periods of absence occasioned
by illness, reasonable vacation periods, and reasonable leaves of absence, Executive will devote all of his business time, attention,
skill and efforts to the faithful performance of his duties under this Agreement, including activities and duties related to the
Executive Position. Notwithstanding the preceding sentence, subject to the approval of the Board, Executive may serve as a member
of the board of directors of business, community and charitable organizations, provided that in each case such service shall not
materially interfere with the performance of his duties under this Agreement, adversely affect the reputation of the Bank or any
other affiliates of the Bank (as determined by the Board), or present any conflict of interest.

 

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

 

		3.	COMPENSATION, BENEFITS AND REIMBURSEMENT.

 

(a)          Base
Salary. In consideration of Executive’s performance of the responsibilities and duties set forth in this Agreement,
the Bank will provide Executive the compensation specified in this Agreement. The Bank will pay Executive a salary of $171,600
per year (“Base Salary”). Such Base Salary will be payable in accordance with the customary payroll practices
of the Bank. During the term of this Agreement, the Board may consider increasing, but not decreasing (other than a decrease which
is applicable to all senior officers of the Bank and in a percentage not in excess of the percentage decrease for other senior
officers), Executive’s Base Salary as the Board deems appropriate. Any change in Base Salary will become the “Base
Salary” for purposes of this Agreement.

 

(b)          Bonus.
Executive shall be eligible to participate in any bonus plan or arrangement of the Bank or the Company in which senior management
is eligible to participate. Nothing paid to Executive under any such plan or arrangement will be deemed to be in lieu of the other
compensation to which Executive is entitled under this Agreement.

 

(c)          Benefit
Plans. Executive will be entitled to participate in all employee benefit plans, arrangements and perquisites offered to
employees and officers of the Bank, on the same

 

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terms and conditions as such plans are available
to other employees and officers of the Bank. Without limiting the generality of the foregoing provisions of this Section 3(c),
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 such plans and arrangements as applicable to other management employees.

 

(d)          Vacation.
Executive will be entitled to paid vacation time each year during the term of this Agreement measured on a calendar year basis,
in accordance with the Bank’s customary practices, as well as sick leave, holidays and other paid absences in accordance
with the Bank’s policies and procedures for officers. 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)          Expense
Reimbursements. The Bank will reimburse Executive for all reasonable travel, entertainment and other reasonable expenses
incurred by Executive during the course of performing his obligations under this Agreement, including, without limitation, fees
for memberships in such organizations as Executive and the Board mutually agree are necessary and appropriate in connection with
the performance of his duties under this Agreement, upon substantiation of such expenses in accordance with applicable policies
and procedures of the Bank. All reimbursements pursuant to this Section 3(e) shall be paid promptly by the Bank and in any
event no later than 30 days following the date on which the expense was incurred. 

 

		4.	TERMINATION AND TERMINATION PAY.

 

Subject to Section 5 of
this Agreement which governs the occurrence of a Change in Control, Executive’s employment under this Agreement may be terminated
in the following circumstances:

 

(a)          Death.
Executive’s employment under this Agreement will terminate upon his death during the term of this Agreement, in which event
Executive’s estate or beneficiary shall be paid Executive’s Base Salary at the rate in effect at the time of Executive’s
death for a period of one (1) year following Executive’s death (payable in accordance with the regular payroll practices
of the Bank). In addition, for one (1) year following Executive’s death, the Bank will continue to provide non-taxable medical
and dental coverage substantially comparable to the coverage maintained by the Bank for Executive and his family immediately prior
to Executive’s death. Such continued benefits will be fully paid for by the Bank.

 

(b)          Disability.
This Agreement shall terminate in the event of Executive’s “Disability” as determined by the Board in its sole
discretion, in which event Executive shall be entitled to receive the compensation and vested benefits due to Executive as of the
date of Executive’s Disability, and Executive shall have no right to receive any other compensation or benefits under this
Agreement. “Disability” shall mean Executive’s permanent and totally physical or mental impairment that
restricts Executive from performing all the essential functions of normal employment.

 

(c)          Termination
for Cause. The Board may immediately terminate Executive’s

 

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employment at any time for
“Cause.” Executive shall have no right to receive compensation or other benefits for any period after termination for
Cause, except for benefits that have vested prior to the date of termination for Cause. Termination for “Cause”
shall mean termination because of, in the good faith determination of the Board, Executive’s:

 

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

 

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

 

(iii)         incompetence
(in determining incompetence, the acts or omissions shall be measured against standards generally prevailing in the banking industry);

 

(iv)        breach
of fiduciary duty involving personal profit;

 

(v)          intentional
failure to perform stated duties under this Agreement after written notice thereof from the Board;

 

(vi)        willful
violation of any law, rule or regulation (other than traffic violations or similar offenses which results only in a fine or other
non-custodial penalty) that reflect adversely on the reputation of the Bank, 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

 

(vii)        material
breach by Executive of any provision of this Agreement.

 

(d)          Voluntary
Termination by Executive. Executive may voluntarily terminate employment during the term of this Agreement upon at least
30 days prior written notice to the Board. Except upon Executive’s voluntary termination “With Good Reason” (as
defined below), Executive shall have no right to receive any compensation or benefits under this Agreement or otherwise upon his
voluntary termination of employment, except for the compensation or benefits that have already been earned or vested. The Bank
may accelerate the date of termination upon receipt of written notice of Executive’s voluntary termination.

 

(e)          Termination
Without Cause or With Good Reason.

 

		(i)	The Board may immediately terminate Executive’s employment at any time for a reason other
than Cause (a termination “Without Cause”), and Executive may, by written notice to the Board, terminate this
Agreement at any time within 90 days following an event constituting “Good Reason,” as defined below (a termination
“With Good Reason”); provided, however, that the Bank shall have 30 days to cure the “Good Reason”
condition, but the Bank may waive its right to cure. Any termination of Executive’s employment shall have no effect on or
prejudice the vested rights of Executive under the Bank’s qualified or non-qualified retirement, pension,

 

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savings, thrift,
profit-sharing or bonus plans, group life, health (including hospitalization, medical and major medical), dental, accident and
long term disability insurance plans or other employee benefit plans or programs, or compensation plans or programs in which Executive
was a participant.

 

		(ii)	In the event of termination as described under Section 4(e)(i) and subject to the requirements
of Section 4(e)(v), the Bank shall pay Executive, or in the event of Executive’s subsequent death, Executive’s beneficiary
or estate, as the case may be, as severance pay, a cash lump sum payment equal to the amount of Base Salary that would have been
earned by Executive had he remained employed with the Bank for the greater of: (A) 12 months; or (B) the remaining term of this
Agreement (the “Benefit Period”). Such payment shall be made to Executive within 30 days following Executive’s
date of termination, and will be subject to applicable withholding taxes.

 

		(iii)	In addition, the Bank will continue to provide to Executive life insurance coverage and non-taxable
medical and dental insurance coverage substantially comparable (and on substantially the same terms and conditions) to the coverage
maintained by the Bank for Executive immediately prior to his termination under the same cost-sharing arrangements that apply for
active employees of the Bank as of Executive’s date of termination. Such continued coverage shall cease upon the earlier
of: (A) the completion of the Benefit Period; or (B) the date on which Executive becomes a full-time employee of another employer,
provided Executive is entitled to benefits that are substantially similar to the health and welfare benefits provided by the Bank.
The period of continued health coverage required by Section 4980B(f) of the Internal Revenue Code of 1986, as amended (the “Code”),
shall run concurrently with the coverage period provided herein.

 

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

 

		(A)	a material reduction in Executive’s Base Salary;

 

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

 

		(C)	a relocation of Executive’s principal place of employment by more than 50 miles from the
Bank’s main office location as of the date of this Agreement; or

 

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

 

		(v)	Executive shall not be entitled to any payments or benefits under this Section 4(e) unless and
until Executive executes a release of claims (the “Release”) against the Bank and any affiliate, and their officers,
directors,

 

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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 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 Executive’s termination of employment,
provided that if the 60 day period spans two (2) calendar years, then, to the extent necessary to comply with Code Section 409A,
the payments and benefits described in this Section 4(e) will be paid, or commence, in the second calendar year.

 

(f)          Effect
on Status as a Director. In the event of Executive’s termination of employment under this Agreement for any reason,
such termination shall also constitute Executive’s resignation as a director of the Bank or the Company, or any subsidiary
or affiliate thereof, to the extent Executive is acting as a director of any of the aforementioned entities.

 

		5.	CHANGE IN CONTROL.

 

(a)          Change
in Control Defined. For purposes of this Agreement, the term “Change in Control” shall mean the occurrence
of any of the following events:

 

		(i)	Merger: The Bank or the Company merges into or consolidates with another entity whereby
the Bank or the Company is not the surviving entity, or the Bank or the Company merges another bank or corporation into the Bank
or the Company, and as a result, less than a majority of the combined voting power of the resulting corporation immediately after
the merger or consolidation is held by persons who were stockholders of the Company or the Bank immediately before the merger or
consolidation;

 

		(ii)	Acquisition of Significant Share Ownership: There is filed, or is required to be filed,
a report on Schedule 13D or another form or schedule (other than Schedule 13G) required under Sections 13(d) or 14(d) of the Securities
Exchange Act of 1934, as amended, if the schedule discloses that the filing person or persons acting in concert has or have become
the beneficial owner of 25% or more of a class of the Company’s or the Bank’s voting securities; provided, however,
this clause (ii) shall not apply to beneficial ownership of the Company’s or the Bank’s voting shares held in a fiduciary
capacity by an entity of which the Company directly or indirectly beneficially owns 50% or more of its outstanding voting securities;

 

		(iii)	Change in Board Composition: During any period of two (2) consecutive years, individuals
who constitute the Company’s or the Bank’s Board of Directors at the beginning of the two-year period cease for any
reason to constitute at least a majority of the Company’s or the Bank’s Board of

 

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Directors; provided,
however, that for purposes of this clause (iii), each director who is first elected to the board (or first nominated by the board
for election by the stockholders) by a vote of at least two-thirds (2/3) of the directors who were directors at the beginning of
the two-year period or who is appointed to the Board as the result of a directive, supervisory agreement or order issued by the
primary federal regulator of the Company or the Bank shall be deemed to have also been a director at the beginning of such period;
or

 

		(iv)	Sale of Assets: The Company or the Bank sells to a third party all or substantially all
of its assets.

 

Notwithstanding anything
herein to the contrary, a Change in Control shall not be deemed to have occurred either: (i) upon the conversion of the Bank to
stock form (as a stand alone stock bank or as the subsidiary of a mutual or stock holding company); or (ii) following the conversion
of the Bank to a subsidiary of a mutual holding company, upon the subsequent conversion of any mutual holding company to stock
form, or in connection with any reorganization used to effect such a conversion.

 

(b)          Change
in Control Benefits. Upon the termination of Executive’s employment by the Bank (or any successor) Without Cause
or by Executive With Good Reason on or after the effective time of a Change in Control, the Bank (or any successor) shall pay Executive,
or in the event of Executive’s subsequent death, Executive’s beneficiary or estate, as severance pay an amount equal
to three (3) times the sum of Executive’s: (i) highest annual rate of Base Salary; and (ii) highest annual cash bonus paid
to, or earned by, Executive during the calendar year of the Change in Control or either of the two (2) calendar years immediately
preceding the Change in Control. Such payments shall be made in a lump sum within 30 days following Executive’s date of termination,
and will be subject to applicable withholding taxes. In addition, the Bank will continue to provide Executive with life insurance
coverage and non-taxable medical and dental insurance coverage substantially comparable to the coverage maintained by the Bank
for Executive immediately prior to his date of termination at no cost to Executive. Such continued coverage shall cease upon the
earlier of: (i) the date which is three (3) years from Executive’s date of termination or (ii) the date on which Executive
becomes a full-time employee of another employer, provided Executive is entitled to the benefits that are substantially similar
to the health and welfare benefits provided by the Bank. The period of continued health coverage required by Section 4980B(f) of
the Code shall not run concurrently with the coverage period provided herein. Notwithstanding the foregoing, the payments and benefits
provided in this Section 5(b) shall be payable to Executive in lieu of any payments or benefits that are payable under Section
4(e).

 

		6.	COVENANTS OF EXECUTIVE.

 

(a)          Non-Solicitation/Non-Compete.
Executive hereby covenants and agrees that, for a period of one (1) year following Executive’s termination of employment
with the Bank, and except as provided in (iv), Executive shall not, without the written consent of the Bank, either directly or
indirectly:

 

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		(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 and accept employment or become affiliated with, or provide services
for compensation in any capacity whatsoever to, any business whatsoever that competes with the business of the Bank, or any of
their direct or indirect subsidiaries or affiliates, that has headquarters or offices within 25 miles of any location(s) in which
the Bank has business operations or has filed an application for regulatory approval to establish an office;

 

		(ii)	become an officer, employee, consultant, director, 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 25 miles of the Bank’s
headquarters (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 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.

 

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

 

(b)          Confidentiality.
Executive recognizes and acknowledges that the knowledge of the business activities, plans for business activities, and all other
proprietary information of the Bank, as it may exist from time to time, are valuable, special and unique assets of the business
of the Bank. Executive will not, during or after the term of Executive’s employment, disclose any knowledge of the past,
present, planned or considered business activities or any other similar proprietary information of the Bank to any person, firm,
corporation, or other entity for any reason or purpose whatsoever unless expressly authorized by the Board or required by law.
Notwithstanding the foregoing, Executive may disclose any knowledge of banking, financial and/or economic principles, concepts
or ideas which are not solely and exclusively derived from the business plans and activities of the Bank. Further, Executive may
disclose information regarding the business activities of the Bank to any bank regulator having regulatory jurisdiction over the
activities of the Bank pursuant to a formal regulatory request. In the event of a breach or threatened breach by Executive of the
provisions of this Section, the Bank will be entitled to an injunction restraining Executive from disclosing, in whole or in part,
the knowledge of the past,

 

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present, planned or considered business activities
of the Bank or any other similar proprietary information, or from rendering any services to any person, firm, corporation, or other
entity to whom such knowledge, in whole or in part, has been disclosed or is threatened to be disclosed. Nothing herein will be
construed as prohibiting the Bank from pursuing any other remedies available to the Bank for such breach or threatened breach,
including the recovery of damages from Executive.

 

(c)          Information/Cooperation.
Executive shall, upon reasonable notice, furnish such 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 Executive shall not be required to provide information or assistance with respect to any litigation between Executive
and the Bank or any other subsidiaries or affiliates.

 

(d)          Reliance.
Except as otherwise provided, all payments and benefits to Executive under this Agreement shall be subject to 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 Executive’s breach of this Section 6, agree that, in the event of any
such breach by Executive, the Bank will be entitled, in addition to any other remedies and damages available, to an injunction
to restrain the violation hereof by Executive and all persons acting for or with Executive. Executive represents and admits that
Executive’s experience and capabilities are such that 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 Executive.

 

		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 Executive, except that this Agreement shall not affect or operate to reduce any benefit or compensation inuring
to Executive under another plan, program or agreement (other than an employment agreement) between the Bank and 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.

 

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(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.

 

		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 such waiver shall operate only as to the
specific term or condition waived and shall not constitute a waiver of such term or condition for the future as to any act other
than that specifically waived.

 

		11.	REQUIRED PROVISIONS.

 

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

 

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

 

(b)          If
Executive is suspended from office and/or temporarily prohibited from participating in the conduct of the Bank’s affairs
by a notice served under Section 8(e)(3) [12 U.S.C. §1818(e)(3)] or 8(g)(1) [12 U.S.C. §1818(g)(1)] of the Federal
Deposit Insurance Act (the “FDI Act”), the Bank’s obligations under this Agreement shall be suspended as of the
date of service, unless stayed by appropriate proceedings. If the charges in the notice are dismissed, the Bank may in its discretion:
(i) pay Executive all or part of the compensation withheld while its contract obligations were suspended and (ii) reinstate (in
whole or in part) any of its obligations which were suspended.

 

(c)          If
Executive is removed and/or permanently prohibited from participating in the conduct of the Bank’s affairs by an order issued
under Section 8(e)(4) [12 U.S.C. §1818(e)(4)] or 8(g)(1) [12 U.S.C. §1818(g)(1)] of the FDI Act, all obligations of the
Bank under this Agreement shall terminate as of the effective date of the order, but vested rights of the contracting parties shall
not be affected.

 

(d)          If
the Bank is in default as defined in Section 3(x)(1) [12 U.S.C. §1813(x)(1)] of the FDI Act, all obligations of the Bank under
this Agreement shall terminate as of the date of default, but this paragraph shall not affect any vested rights of the contracting
parties.

 

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(e)          All
obligations under this Agreement shall be terminated, except to the extent determined that continuation of this Agreement is necessary
for the continued operation of the Bank, (i) by the Comptroller of the Office of the Comptroller of the Currency or his or her
designee, at the time the FDIC enters into an agreement to provide assistance to or on behalf of the Bank under the authority contained
in Section 13(c) [12 U.S.C. §1823(c)] of the FDI Act; or (ii) by the Comptroller or his or her designee at the time the
Comptroller or his or her designee approves a supervisory merger to resolve problems related to operation of the Bank or when the
Bank is determined by the Comptroller to be in an unsafe or unsound condition. Any rights of the parties that have already vested,
however, shall not be affected by such action.

 

(f)           Notwithstanding
anything herein contained to the contrary, any payments to Executive by the Company, whether 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. Section
1828(k), and the regulations promulgated thereunder in 12 C.F.R. Part 359.

 

(g)          Notwithstanding
anything else in this Agreement to the contrary (with the exception of Section 4(c)(i)), Executive’s employment shall not
be deemed to have been terminated unless and until Executive has a Separation from Service within the meaning of Code Section 409A.
For purposes of this Agreement, a “Separation from Service” shall have occurred if the Bank and Executive reasonably
anticipate that either no further services will be performed by 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 50 percent of the average level of bona
fide services in the 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). Notwithstanding the foregoing, this
Section 11(g) shall not apply in the event of the Executive’s termination for Cause.

 

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

 

(i)           If
the Bank cannot provide Executive or Executive’s dependents any continued health insurance or other welfare benefits as required
by this Agreement because Executive is no longer an employee, applicable rules and regulations prohibit such benefits or the payment
of such benefits in the manner contemplated, or it would subject the Bank to penalties, then the Bank shall pay Executive or Executive’s
beneficiary or estate in the event of death a cash lump sum payment reasonably estimated to be equal to the value of such benefits
or the value of the remaining benefits at the time of such determination. Such cash payment shall be made in a lump sum within
30 days after the later of Executive’s date of termination or the effective date of the rules or regulations prohibiting
such benefits or subjecting the Bank to penalties.

 

    	 	11	 

     

    

 

(j)           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).

 

(k)          Notwithstanding
anything in this Agreement to the contrary, Executive understands that nothing contained in this Agreement limits 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). Executive further understands that this Agreement does not limit 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 Executive’s right to receive any resulting monetary award for information
provided to any Government Agency.

 

		12.	SEVERABILITY.

 

If, for any reason, any
provision of this Agreement, or any part of any provision, is held invalid, such invalidity shall not affect any other provision
of this Agreement or any part of such provision not held so invalid, and each such other provision and part thereof shall to the
full extent consistent with law continue in full force and effect.

 

		13.	GOVERNING LAW.

 

This Agreement shall be
governed by the laws of the State of New York, 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 binding arbitration, as an alternative to civil
litigation and without any trial by jury to resolve such claims, conducted by a single arbitrator mutually acceptable to the Bank
and Executive, sitting in a location selected by the Bank within 50 miles from the main office of the Bank, in accordance with
the rules of the American Arbitration Association’s National Rules for the Resolution of Employment Disputes then in effect.
Judgment may be entered on the arbitrator’s award in any court having jurisdiction. The cost of the arbitrator shall be paid
by the Bank; all other costs of arbitration shall be borne by the respective parties, except as otherwise provided in Section 14.

 

		15.	PAYMENT OF LEGAL FEES.

 

To the extent that such
payment(s) may be made without triggering penalty under Code Section 409A, all reasonable legal fees paid or incurred by Executive
pursuant to any dispute relating to this Agreement shall be paid or reimbursed by the Bank provided that the dispute is resolved
in Executive’s favor, and such reimbursement shall occur no later than 60 days after the end of the year in which the dispute
is settled or resolved in Executive’s favor.

 

    	 	12	 

     

    

 

		16.	INDEMNIFICATION.

 

The Bank shall provide
Executive (including Executive’s heirs, executors and administrators) with coverage under a standard directors’ and
officers’ liability insurance policy at its expense, and shall indemnify Executive (and 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 Executive in connection with or arising out of any action, suit
or proceeding in which he may be involved by reason of Executive having been a director or officer of the Bank or any subsidiary
or affiliate of the Bank.

 

		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:

 

	To the Bank	
        Seneca Federal Savings and Loan Association

        35 Oswego St.

        Baldwinsville, NY 13027

        Attention: Chairman of the Board

	 	 
	To Executive:	Most recent address on file with the Bank

 

[Signature Page Follows]

 

    	 	13	 

     

    

 

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

 

	 	SENECA FEDERAL SAVINGS AND LOAN ASSOCIATION
	 	 	 
	 	By:	/s/ William  M. Le Beau
	 	Name:  	William  M. Le Beau
	 	Title:  	Chairman
	 	 	 
	 	EXECUTIVE	 
	 	 	 
	 	/s/ Joseph G. Vitale
	 	Joseph G. Vitale

 

    	 	14Exhibit 10.2

 

EXECUTION COPY

 

EMPLOYMENT
AGREEMENT

 

This Employment Agreement
(the “Agreement”) is made and entered into, effective as of April 6, 2017 (the “Effective Date”),
by and between Seneca Federal Savings and Loan Association (the “Bank”) and Vincent J. Fazio (“Executive”).
Any reference to the “Company” shall mean any newly-formed the stock holding company of the Bank, or any successor
thereto.

 

WHEREAS, the Bank
wishes to assure itself of the continued services of Executive for the period provided in this Agreement; and

 

WHEREAS, in order
to induce Executive to remain in the employ of the Bank and to provide further incentive for Executive to achieve the financial
and performance objectives of the Bank, the parties desire to enter into this Agreement; and

 

WHEREAS, the Bank
desires to set forth the rights and responsibilities of Executive and the compensation payable to Executive, as modified from time
to time.

 

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.

 

During the term of this
Agreement, Executive agrees to serve as Executive Vice President and Chief Financial Officer of the Bank (the “Executive
Position”), and will perform the duties and will have all powers associated with such position as set forth in any job
description provided to Executive by the Bank, and as may be set forth in the bylaws of the Bank. During the period provided in
this Agreement, Executive also agrees to serve, if elected, as an officer or director of any subsidiary or affiliate of the Bank
and in such capacity carry out such duties and responsibilities reasonably appropriate to that office.

 

		2.	TERM AND DUTIES.

 

(a)          Term
and Annual Renewal. The initial term of this Agreement and the period of Executive’s employment hereunder shall begin
as of the Effective Date and shall continue through December 31, 2019. Commencing on January 1, 2018 and continuing on each January
1st thereafter (the “Renewal Date”), this Agreement shall renew for an additional year such that
the remaining term shall be three (3) years, provided, however, that in order for this Agreement to renew, the disinterested members
of the Board of Directors of the Bank (the “Board”) must take the following actions within the time frames set
forth below prior to each Renewal Date: (1) at least 30 days prior to each Renewal Date, conduct a comprehensive performance evaluation
and review of Executive for purposes of determining whether to extend this Agreement; and (2) affirmatively approve the renewal
or non-renewal of this Agreement, which such decision shall be included in the minutes of the Board’s meeting. If the decision
of the disinterested members of the Board is not to renew this Agreement, then the Board shall provide Executive with a written
notice of non-renewal (the “Non-Renewal Notice”) at least 15 days prior to any Renewal Date, such that this
Agreement shall terminate at the end of 24 months following such Renewal Date. The failure of the disinterested members of the
Board to take the actions set forth herein before

 

     

     

    

 

any Renewal Date will result in the automatic
non-renewal of this Agreement, even if the Board fails to affirmatively issue the Non-Renewal Notice to Executive. If the Board
fails to inform Executive of its determination regarding the renewal or non-renewal of this Agreement, Executive may request, in
writing, the results of the Board’s action (or non-action) and the Board shall, within 10 days of the receipt of such request,
provide a written response to Executive. Reference herein to the term of this Agreement shall refer to both such initial term and
such extended terms.

 

(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 under Section 5 hereof, the term of this Agreement shall
be extended automatically so that it is scheduled to expire no less than three (3) years beyond the effective date of the Change
in Control, subject to extensions as set forth above.

 

(c)          Membership
on Other Boards or Organizations. During the period of his employment hereunder, except for periods of absence occasioned
by illness, reasonable vacation periods, and reasonable leaves of absence, Executive will devote all of his business time, attention,
skill and efforts to the faithful performance of his duties under this Agreement, including activities and duties related to the
Executive Position. Notwithstanding the preceding sentence, subject to the approval of the Board, Executive may serve as a member
of the board of directors of business, community and charitable organizations, provided that in each case such service shall not
materially interfere with the performance of his duties under this Agreement, adversely affect the reputation of the Bank or any
other affiliates of the Bank (as determined by the Board), or present any conflict of interest.

 

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

 

		3.	COMPENSATION, BENEFITS AND REIMBURSEMENT.

 

(a)          Base
Salary. In consideration of Executive’s performance of the responsibilities and duties set forth in this Agreement,
the Bank will provide Executive the compensation specified in this Agreement. The Bank will pay Executive a salary of $109,709.60
per year (“Base Salary”). Such Base Salary will be payable in accordance with the customary payroll practices
of the Bank. During the term of this Agreement, the Board may consider increasing, but not decreasing (other than a decrease which
is applicable to all senior officers of the Bank and in a percentage not in excess of the percentage decrease for other senior
officers), Executive’s Base Salary as the Board deems appropriate. Any change in Base Salary will become the “Base
Salary” for purposes of this Agreement.

 

(b)          Bonus.
Executive shall be eligible to participate in any bonus plan or arrangement of the Bank or the Company in which senior management
is eligible to participate. Nothing paid to Executive under any such plan or arrangement will be deemed to be in lieu of the other
compensation to which Executive is entitled under this Agreement.

 

(c)          Benefit
Plans. Executive will be entitled to participate in all employee benefit plans, arrangements and perquisites offered to
employees and officers of the Bank, on the same

 

    	 	2	 

     

    

 

terms and conditions as such plans are available
to other employees and officers of the Bank. Without limiting the generality of the foregoing provisions of this Section 3(c),
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 such plans and arrangements as applicable to other management employees.

 

(d)          Vacation.
Executive will be entitled to paid vacation time each year during the term of this Agreement measured on a calendar year basis,
in accordance with the Bank’s customary practices, as well as sick leave, holidays and other paid absences in accordance
with the Bank’s policies and procedures for officers. 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)          Expense
Reimbursements. The Bank will reimburse Executive for all reasonable travel, entertainment
and other reasonable expenses incurred by Executive during the course of performing his obligations under this Agreement, including,
without limitation, fees for memberships in such organizations as Executive and the Board mutually agree are necessary and appropriate
in connection with the performance of his duties under this Agreement, upon substantiation of such expenses in accordance with
applicable policies and procedures of the Bank. All reimbursements pursuant
to this Section 3(e) shall be paid promptly by the Bank and in any event no later than 30 days following the date on which the
expense was incurred. 

 

		4.	TERMINATION AND TERMINATION PAY.

 

Subject to Section 5 of
this Agreement which governs the occurrence of a Change in Control, Executive’s employment under this Agreement may be terminated
in the following circumstances:

 

(a)          Death.
Executive’s employment under this Agreement will terminate upon his death during the term of this Agreement, in which event
Executive’s estate or beneficiary shall be paid Executive’s Base Salary at the rate in effect at the time of Executive’s
death for a period of one (1) year following Executive’s death (payable in accordance with the regular payroll practices
of the Bank). In addition, for one (1) year following Executive’s death, the Bank will continue to provide non-taxable medical
and dental coverage substantially comparable to the coverage maintained by the Bank for Executive and his family immediately prior
to Executive’s death. Such continued benefits will be fully paid for by the Bank.

 

(b)          Disability.
This Agreement shall terminate in the event of Executive’s “Disability” as determined by the Board in its sole
discretion, in which event Executive shall be entitled to receive the compensation and vested benefits due to Executive as of the
date of Executive’s Disability, and Executive shall have no right to receive any other compensation or benefits under this
Agreement. “Disability” shall mean Executive’s permanent and totally physical or mental impairment that
restricts Executive from performing all the essential functions of normal employment.

 

(c)          Termination
for Cause. The Board may immediately terminate Executive’s

 

    	 	3	 

     

    

 

employment at any time for
“Cause.” Executive shall have no right to receive compensation or other benefits for any period after termination for
Cause, except for benefits that have vested prior to the date of termination for Cause. Termination for “Cause”
shall mean termination because of, in the good faith determination of the Board, Executive’s:

 

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

 

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

 

(iii)          incompetence
(in determining incompetence, the acts or omissions shall be measured against standards generally prevailing in the banking industry);

 

(iv)          breach
of fiduciary duty involving personal profit;

 

(v)           intentional
failure to perform stated duties under this Agreement after written notice thereof from the Board;

 

(vi)          willful
violation of any law, rule or regulation (other than traffic violations or similar offenses which results only in a fine or other
non-custodial penalty) that reflect adversely on the reputation of the Bank, 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

 

(vii)         material
breach by Executive of any provision of this Agreement.

 

(d)          Voluntary
Termination by Executive. Executive may voluntarily terminate employment during the term of this Agreement upon at least
30 days prior written notice to the Board. Except upon Executive’s voluntary termination “With Good Reason” (as
defined below), Executive shall have no right to receive any compensation or benefits under this Agreement or otherwise upon his
voluntary termination of employment, except for the compensation or benefits that have already been earned or vested. The Bank
may accelerate the date of termination upon receipt of written notice of Executive’s voluntary termination.

 

(e)          Termination
Without Cause or With Good Reason.

 

		(i)	The Board may immediately terminate Executive’s employment at any time for a reason other
than Cause (a termination “Without Cause”), and Executive may, by written notice to the Board, terminate this
Agreement at any time within 90 days following an event constituting “Good Reason,” as defined below (a termination
“With Good Reason”); provided, however, that the Bank shall have 30 days to cure the “Good Reason”
condition, but the Bank may waive its right to cure. Any termination of Executive’s employment shall have no effect on or
prejudice the vested rights of Executive under the Bank’s qualified or non-qualified retirement, pension,

 

    	 	4	 

     

    

 

savings, thrift,
profit-sharing or bonus plans, group life, health (including hospitalization, medical and major medical), dental, accident and
long term disability insurance plans or other employee benefit plans or programs, or compensation plans or programs in which Executive
was a participant.

 

		(ii)	In the event of termination as described under Section 4(e)(i) and subject to the requirements
of Section 4(e)(v), the Bank shall pay Executive, or in the event of Executive’s subsequent death, Executive’s beneficiary
or estate, as the case may be, as severance pay, a cash lump sum payment equal to the amount of Base Salary that would have been
earned by Executive had he remained employed with the Bank for the greater of: (A) 12 months; or (B) the remaining term of this
Agreement (the “Benefit Period”). Such payment shall be made to Executive within 30 days following Executive’s
date of termination, and will be subject to applicable withholding taxes.

 

		(iii)	In addition, the Bank will continue to provide to Executive life insurance coverage and non-taxable
medical and dental insurance coverage substantially comparable (and on substantially the same terms and conditions) to the coverage
maintained by the Bank for Executive immediately prior to his termination under the same cost-sharing arrangements that apply for
active employees of the Bank as of Executive’s date of termination. Such continued coverage shall cease upon the earlier
of: (A) the completion of the Benefit Period; or (B) the date on which Executive becomes a full-time employee of another employer,
provided Executive is entitled to benefits that are substantially similar to the health and welfare benefits provided by the Bank.
The period of continued health coverage required by Section 4980B(f) of the Internal Revenue Code of 1986, as amended (the “Code”),
shall run concurrently with the coverage period provided herein.

 

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

 

		(A)	a material reduction in Executive’s Base Salary;

 

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

 

		(C)	a relocation of Executive’s principal place of employment by more than 50 miles from the
Bank’s main office location as of the date of this Agreement; or

 

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

 

		(v)	Executive shall not be entitled to any payments or benefits under this Section 4(e) unless and
until Executive executes a release of claims (the “Release”) against the Bank and any affiliate, and their officers,
directors,

 

    	 	5	 

     

    

 

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 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 Executive’s termination of employment,
provided that if the 60 day period spans two (2) calendar years, then, to the extent necessary to comply with Code Section 409A,
the payments and benefits described in this Section 4(e) will be paid, or commence, in the second calendar year.

 

(f)           Effect
on Status as a Director. In the event of Executive’s termination of employment under this Agreement for any reason,
such termination shall also constitute Executive’s resignation as a director of the Bank or the Company, or any subsidiary
or affiliate thereof, to the extent Executive is acting as a director of any of the aforementioned entities.

 

		5.	CHANGE IN CONTROL.

 

(a)          Change
in Control Defined. For purposes of this Agreement, the term “Change in Control” shall mean the occurrence
of any of the following events:

 

		(i)	Merger: The Bank or the Company merges into or consolidates with another entity whereby
the Bank or the Company is not the surviving entity, or the Bank or the Company merges another bank or corporation into the Bank
or the Company, and as a result, less than a majority of the combined voting power of the resulting corporation immediately after
the merger or consolidation is held by persons who were stockholders of the Company or the Bank immediately before the merger or
consolidation;

 

		(ii)	Acquisition of Significant Share Ownership: There is filed, or is required to be filed,
a report on Schedule 13D or another form or schedule (other than Schedule 13G) required under Sections 13(d) or 14(d) of the Securities
Exchange Act of 1934, as amended, if the schedule discloses that the filing person or persons acting in concert has or have become
the beneficial owner of 25% or more of a class of the Company’s or the Bank’s voting securities; provided, however,
this clause (ii) shall not apply to beneficial ownership of the Company’s or the Bank’s voting shares held in a fiduciary
capacity by an entity of which the Company directly or indirectly beneficially owns 50% or more of its outstanding voting securities;

 

		(iii)	Change in Board Composition: During any period of two (2) consecutive years, individuals
who constitute the Company’s or the Bank’s Board of Directors at the beginning of the two-year period cease for any
reason to constitute at least a majority of the Company’s or the Bank’s Board of

 

    	 	6	 

     

    

 

Directors; provided,
however, that for purposes of this clause (iii), each director who is first elected to the board (or first nominated by the board
for election by the stockholders) by a vote of at least two-thirds (2/3) of the directors who were directors at the beginning of
the two-year period or who is appointed to the Board as the result of a directive, supervisory agreement or order issued by the
primary federal regulator of the Company or the Bank shall be deemed to have also been a director at the beginning of such period;
or

 

		(iv)	Sale of Assets: The Company or the Bank sells to a third party all or substantially all
of its assets.

 

Notwithstanding anything
herein to the contrary, a Change in Control shall not be deemed to have occurred either: (i) upon the conversion of the Bank to
stock form (as a stand alone stock bank or as the subsidiary of a mutual or stock holding company); or (ii) following the conversion
of the Bank to a subsidiary of a mutual holding company, upon the subsequent conversion of any mutual holding company to stock
form, or in connection with any reorganization used to effect such a conversion.

 

(b)          Change
in Control Benefits. Upon the termination of Executive’s employment by the Bank (or any successor) Without Cause
or by Executive With Good Reason on or after the effective time of a Change in Control, the Bank (or any successor) shall pay Executive,
or in the event of Executive’s subsequent death, Executive’s beneficiary or estate, as severance pay an amount equal
to three (3) times the sum of Executive’s: (i) highest annual rate of Base Salary; and (ii) highest annual cash bonus paid
to, or earned by, Executive during the calendar year of the Change in Control or either of the two (2) calendar years immediately
preceding the Change in Control. Such payments shall be made in a lump sum within 30 days following Executive’s date of termination,
and will be subject to applicable withholding taxes. In addition, the Bank will continue to provide Executive with life insurance
coverage and non-taxable medical and dental insurance coverage substantially comparable to the coverage maintained by the Bank
for Executive immediately prior to his date of termination at no cost to Executive. Such continued coverage shall cease upon the
earlier of: (i) the date which is three (3) years from Executive’s date of termination or (ii) the date on which Executive
becomes a full-time employee of another employer, provided Executive is entitled to the benefits that are substantially similar
to the health and welfare benefits provided by the Bank. The period of continued health coverage required by Section 4980B(f) of
the Code shall not run concurrently with the coverage period provided herein. Notwithstanding the foregoing, the payments and benefits
provided in this Section 5(b) shall be payable to Executive in lieu of any payments or benefits that are payable under Section
4(e).

 

		6.	COVENANTS OF EXECUTIVE.

 

(a)          Non-Solicitation/Non-Compete.
Executive hereby covenants and agrees that, for a period of one (1) year following Executive’s termination of employment
with the Bank, and except as provided in (iv), Executive shall not, without the written consent of the Bank, either directly or
indirectly:

 

    	 	7	 

     

    

 

		(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 and accept employment or become affiliated with, or provide services
for compensation in any capacity whatsoever to, any business whatsoever that competes with the business of the Bank, or any of
their direct or indirect subsidiaries or affiliates, that has headquarters or offices within 25 miles of any location(s) in which
the Bank has business operations or has filed an application for regulatory approval to establish an office;

 

		(ii)	become an officer, employee, consultant, director, 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 25 miles of the Bank’s
headquarters (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 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.

 

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

 

(b)          Confidentiality.
Executive recognizes and acknowledges that the knowledge of the business activities, plans for business activities, and all other
proprietary information of the Bank, as it may exist from time to time, are valuable, special and unique assets of the business
of the Bank. Executive will not, during or after the term of Executive’s employment, disclose any knowledge of the past,
present, planned or considered business activities or any other similar proprietary information of the Bank to any person, firm,
corporation, or other entity for any reason or purpose whatsoever unless expressly authorized by the Board or required by law.
Notwithstanding the foregoing, Executive may disclose any knowledge of banking, financial and/or economic principles, concepts
or ideas which are not solely and exclusively derived from the business plans and activities of the Bank. Further, Executive may
disclose information regarding the business activities of the Bank to any bank regulator having regulatory jurisdiction over the
activities of the Bank pursuant to a formal regulatory request. In the event of a breach or threatened breach by Executive of the
provisions of this Section, the Bank will be entitled to an injunction restraining Executive from disclosing, in whole or in part,
the knowledge of the past,

 

    	 	8	 

     

    

 

present, planned or considered business activities
of the Bank or any other similar proprietary information, or from rendering any services to any person, firm, corporation, or other
entity to whom such knowledge, in whole or in part, has been disclosed or is threatened to be disclosed. Nothing herein will be
construed as prohibiting the Bank from pursuing any other remedies available to the Bank for such breach or threatened breach,
including the recovery of damages from Executive.

 

(c)          Information/Cooperation.
Executive shall, upon reasonable notice, furnish such 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 Executive shall not be required to provide information or assistance with respect to any litigation between Executive
and the Bank or any other subsidiaries or affiliates.

 

(d)          Reliance.
Except as otherwise provided, all payments and benefits to Executive under this Agreement shall be subject to 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 Executive’s breach of this Section 6, agree that, in the event of any
such breach by Executive, the Bank will be entitled, in addition to any other remedies and damages available, to an injunction
to restrain the violation hereof by Executive and all persons acting for or with Executive. Executive represents and admits that
Executive’s experience and capabilities are such that 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 Executive.

 

		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 Executive, except that this Agreement shall not affect or operate to reduce any benefit or compensation inuring
to Executive under another plan, program or agreement (other than an employment agreement) between the Bank and 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.

 

    	 	9	 

     

    

 

(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.

 

		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 such waiver shall operate only as to the
specific term or condition waived and shall not constitute a waiver of such term or condition for the future as to any act other
than that specifically waived.

 

		11.	REQUIRED PROVISIONS.

 

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

 

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

 

(b)          If
Executive is suspended from office and/or temporarily prohibited from participating in the conduct of the Bank’s affairs
by a notice served under Section 8(e)(3) [12 U.S.C. §1818(e)(3)] or 8(g)(1) [12 U.S.C. §1818(g)(1)] of the Federal
Deposit Insurance Act (the “FDI Act”), the Bank’s obligations under this Agreement shall be suspended as of the
date of service, unless stayed by appropriate proceedings. If the charges in the notice are dismissed, the Bank may in its discretion:
(i) pay Executive all or part of the compensation withheld while its contract obligations were suspended and (ii) reinstate (in
whole or in part) any of its obligations which were suspended.

 

(c)          If
Executive is removed and/or permanently prohibited from participating in the conduct of the Bank’s affairs by an order issued
under Section 8(e)(4) [12 U.S.C. §1818(e)(4)] or 8(g)(1) [12 U.S.C. §1818(g)(1)] of the FDI Act, all obligations of the
Bank under this Agreement shall terminate as of the effective date of the order, but vested rights of the contracting parties shall
not be affected.

 

(d)          If
the Bank is in default as defined in Section 3(x)(1) [12 U.S.C. §1813(x)(1)] of the FDI Act, all obligations of the Bank under
this Agreement shall terminate as of the date of default, but this paragraph shall not affect any vested rights of the contracting
parties.

 

    	 	10	 

     

    

 

(e)          All
obligations under this Agreement shall be terminated, except to the extent determined that continuation of this Agreement is necessary
for the continued operation of the Bank, (i) by the Comptroller of the Office of the Comptroller of the Currency or his or her
designee, at the time the FDIC enters into an agreement to provide assistance to or on behalf of the Bank under the authority contained
in Section 13(c) [12 U.S.C. §1823(c)] of the FDI Act; or (ii) by the Comptroller or his or her designee at the time the
Comptroller or his or her designee approves a supervisory merger to resolve problems related to operation of the Bank or when the
Bank is determined by the Comptroller to be in an unsafe or unsound condition. Any rights of the parties that have already vested,
however, shall not be affected by such action.

 

(f)           Notwithstanding
anything herein contained to the contrary, any payments to Executive by the Company, whether 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. Section
1828(k), and the regulations promulgated thereunder in 12 C.F.R. Part 359.

 

(g)          Notwithstanding
anything else in this Agreement to the contrary (with the exception of Section 4(c)(i)), Executive’s employment shall not
be deemed to have been terminated unless and until Executive has a Separation from Service within the meaning of Code Section 409A.
For purposes of this Agreement, a “Separation from Service” shall have occurred if the Bank and Executive reasonably
anticipate that either no further services will be performed by 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 50 percent of the average level of bona
fide services in the 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). Notwithstanding the foregoing, this
Section 11(g) shall not apply in the event of the Executive’s termination for Cause.

 

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

 

(i)           If
the Bank cannot provide Executive or Executive’s dependents any continued health insurance or other welfare benefits as required
by this Agreement because Executive is no longer an employee, applicable rules and regulations prohibit such benefits or the payment
of such benefits in the manner contemplated, or it would subject the Bank to penalties, then the Bank shall pay Executive or Executive’s
beneficiary or estate in the event of death a cash lump sum payment reasonably estimated to be equal to the value of such benefits
or the value of the remaining benefits at the time of such determination. Such cash payment shall be made in a lump sum within
30 days after the later of Executive’s date of termination or the effective date of the rules or regulations prohibiting
such benefits or subjecting the Bank to penalties.

 

    	 	11	 

     

    

 

(j)           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).

 

(k)          Notwithstanding
anything in this Agreement to the contrary, Executive understands that nothing contained in this Agreement limits 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). Executive further understands that this Agreement does not limit 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 Executive’s right to receive any resulting monetary award for information
provided to any Government Agency.

 

		12.	SEVERABILITY.

 

If, for any reason, any
provision of this Agreement, or any part of any provision, is held invalid, such invalidity shall not affect any other provision
of this Agreement or any part of such provision not held so invalid, and each such other provision and part thereof shall to the
full extent consistent with law continue in full force and effect.

 

		13.	GOVERNING LAW.

 

This Agreement shall be
governed by the laws of the State of New York, 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 binding arbitration, as an alternative to civil
litigation and without any trial by jury to resolve such claims, conducted by a single arbitrator mutually acceptable to the Bank
and Executive, sitting in a location selected by the Bank within 50 miles from the main office of the Bank, in accordance with
the rules of the American Arbitration Association’s National Rules for the Resolution of Employment Disputes then in effect.
Judgment may be entered on the arbitrator’s award in any court having jurisdiction. The cost of the arbitrator shall be paid
by the Bank; all other costs of arbitration shall be borne by the respective parties, except as otherwise provided in Section 14.

 

		15.	PAYMENT OF LEGAL FEES.

 

To the extent that such
payment(s) may be made without triggering penalty under Code Section 409A, all reasonable legal fees paid or incurred by Executive
pursuant to any dispute relating to this Agreement shall be paid or reimbursed by the Bank provided that the dispute is resolved
in Executive’s favor, and such reimbursement shall occur no later than 60 days after the end of the year in which the dispute
is settled or resolved in Executive’s favor.

 

    	 	12	 

     

    

 

		16.	INDEMNIFICATION.

 

The Bank shall provide
Executive (including Executive’s heirs, executors and administrators) with coverage under a standard directors’ and
officers’ liability insurance policy at its expense, and shall indemnify Executive (and 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 Executive in connection with or arising out of any action, suit
or proceeding in which he may be involved by reason of Executive having been a director or officer of the Bank or any subsidiary
or affiliate of the Bank.

 

		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:

 

	To the Bank	
        Seneca Federal Savings and Loan Association

        35 Oswego St.

        Baldwinsville, NY 13027

        Attention: Chairman of the Board

         

	To Executive:	Most recent address on file with the Bank

 

[Signature Page Follows]

 

    	 	13	 

     

    

 

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

 

	 	SENECA FEDERAL SAVINGS AND LOAN ASSOCIATION
	 	 	 
	 	By:	/s/ William M. Le Beau
	 	Name:	William M. Le Beau
	 	Title:	Chairman
	 	 	 
	 	EXECUTIVE
	 	 	 
	 	/s/ Vincent J. Fazio
	 	Vincent J. Fazio

 

    	 	14

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