Document:

Exhibit 10.3

      

      

      

      

      

      
        EXECUTION
          COPY

         

        

        
          EMPLOYMENT AGREEMENT

          This Employment Agreement (the “Agreement”) is made effective as of January 1, 2020 (the “Effective Date”), by and between The First of Long Island Corporation (the “Company”),

            The First National Bank of Long Island (the “Bank”; and together with the Company, “FLIC”) and Jay P. McConie (“Executive”).

          WHEREAS,
            FLIC wishes to assure itself of the continued services of Executive for the period and in accordance with the terms provided in this Agreement; and

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

          WHEREAS,
            the parties previously entered into a Severance Agreement dated July 20, 2015 (the “Prior Agreement”) and the parties have agreed that as of the
            Effective Date the terms and conditions set forth in this Agreement shall supersede any and all provisions of the Prior Agreement, and that such Prior Agreement shall terminate and be null and void and of no further force.

          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. TERM.

          (a) Term.  The term of this Agreement and the period of Executive’s employment hereunder shall begin as of the Effective Date and shall continue for twenty-four (24) full calendar months thereafter
              (the “Employment Period,” which shall include any periods covered by renewals hereunder).  Subject to Section 4(d), commencing on January 1, 2021, and
              continuing on January 1 of each year thereafter (the “Anniversary Date”), this Agreement shall renew for an additional twelve months such that the
              remaining term shall be twenty-four months (24) months, unless written notice of non-renewal is provided to Executive at least thirty (30) days prior to any such Anniversary Date.

          

          

          2. EMPLOYMENT; CAPACITY; DUTIES.

          (a) Employment. 
              During the Employment Period Executive shall be employed in the capacity of Executive Vice President, Chief Financial Officer and Treasurer of the Company and
                Cashier of the Bank (the “Executive Position”) and shall have
                such other senior executive title as may from time to time be determined by the Boards of Directors.  Executive shall have such duties and responsibilities as usually appertain to the Executive Position, as well as those as shall be assigned by the Chief Executive Officer or by the
              Board of Directors.  The Executive shall report to the Chief Executive Officer.

          (b) Service on Other Boards.  Executive agrees to devote his full time and attention and best efforts to the faithful and diligent performance of Executive’s duties to FLIC, and Executive shall serve and further the best
                interests and enhance the reputation of FLIC to the best of Executive’s ability. Nothing herein shall be construed as preventing Executive from serving as a member of the board of directors of any non-profit organization (of which the Board
                shall be notified prior to the commencement of service) or, with the consent of the Board of Directors, of any for-profit organization, in either case subject to and consistent with applicable laws.  Executive’s service on boards of
              non-profits and for-profit organizations in effect as of the date of this Agreement and as to which the Board has been previously notified, may be continued.

          

          

          

          

          

          

          

          

          

          

          
            
              

          

          
          
            
              	
                      3.

                    	
                      COMPENSATION, BENEFITS AND REIMBURSEMENT.

                    

            

          

          (a) Base Salary.  In consideration of Executive’s performance of
              the responsibilities and duties set forth in this Agreement, Executive shall receive an annual base salary of $300,000 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 increase, but not decrease,
              Executive’s Base Salary.  Any increase in Base Salary will become the “Base Salary” for purposes of this Agreement.

          

          

          (b) Bonus.  Executive shall be entitled to participate in any
              bonus plan or arrangement of FLIC (including both any short-term and long-term incentive program) 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.  The terms of FLIC’s short-term and long-term incentive plans or programs shall determine the bonuses payable thereunder, if any, to Executive following
              Executive’s termination of employment.

          

          

          (c) Benefit Plans.  Executive will be entitled to participate in
              all employee benefit plans, arrangements and perquisites offered to employees and officers of FLIC, on the same terms and conditions as such plans are available to other employees and officers of FLIC.  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.  Except as otherwise provided herein, the terms of FLIC’s benefit plans or arrangements shall determine the benefits payable thereunder, if any, to Executive following Executive’s termination of
              employment or retirement.

          

          

          (d) Vacation.  Executive will be entitled to paid vacation, 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.  FLIC will reimburse Executive for
              all reasonable travel, entertainment and other reasonable expenses incurred by Executive during the course of performing Executive’s 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 Executive’s duties under this Agreement.  Furthermore, the Bank shall pay or reimburse Executive for the full cost of the use of an
              automobile that is mutually agreeable to the Bank and Executive.  Executive shall comply with the reasonable reporting and expense limitations on the use of such automobile as the Bank may establish from time to time.  All reimbursements
              shall be made as soon as practicable upon substantiation of such expenses by Executive in accordance with the applicable policies and procedures of the Bank.

           

            

           

            

           

            

           

            

          
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                    4.

                  	
                    TERMINATION AND COMPENSATION PAYABLE FOLLOWING TERMINATION.

                  

          

          Executive’s employment under this Agreement may be terminated in the following circumstances:

          (a) Death.  This
              Agreement shall terminate upon Executive’s death, in which event Executive’s estate or beneficiary shall be entitled to receive the compensation and vested benefits due Executive as of the date of Executive’s death, and neither Executive, nor
              Executive’s estate or beneficiary, shall have a right to receive any compensation or benefits under this Agreement thereafter.

          (b) Disability.  FLIC
              may terminate Executive’s employment upon his becoming “Totally Disabled,” in which event Executive shall be entitled to receive the compensation and vested benefits due Executive as of the date of Executive’s termination, and Executive shall have no right to receive any other compensation or benefits under this Agreement.  For purposes of this Agreement, Executive
              shall be “Totally Disabled” if Executive is physically or mentally incapacitated so as to render Executive incapable of performing the essential
              functions of his position under this Agreement even with reasonable accommodation. Executive’s receipt of disability benefits under the Bank’s long-term disability plan, if any, or receipt of Social Security disability benefits shall be
              deemed conclusive evidence of Total Disability for purpose of this Agreement; provided, however, that in the absence of Executive’s receipt of such long-term disability benefits or Social Security benefits, the Board may, in its reasonable
              discretion but based upon appropriate medical evidence, determine that Executive is Totally Disabled.

          (c) Termination for Cause.  The Board may immediately terminate
              Executive’s employment for “Cause” at any time upon written notice to Executive.  Executive shall have no right to receive compensation or other benefits under this Agreement or otherwise from FLIC for any period after termination for Cause,
              except for compensation or benefits that have already been earned or vested as of the date of termination.  For purposes of this Agreement, “Termination for Cause” shall mean termination because of, in the good faith determination of the
              Board: (i) Executive’s conviction (including conviction on a nolo contendere plea) of a felony or of any lesser criminal offense involving moral turpitude, fraud or dishonesty; (ii) the willful commission by Executive of a criminal or other
              act that, in the reasonable judgment of the Board will likely cause substantial economic damage to the Company or the Bank or substantial injury to the business reputation of the Company or Bank; (iii) the commission by Executive of an act of
              fraud in the performance of his duties on behalf of the Company or Bank; (iv) the continuing willful failure of Executive to perform his employment duties to the Company or Bank after thirty (30) days’ written notice thereof (specifying the
              particulars thereof in reasonable detail) and a reasonable opportunity to be heard and cure such failure are given to Executive by the Board; (v) an order of a federal or state regulatory agency or a court of competent jurisdiction requiring
              the termination of Executive’s employment by the Company or the Bank; or (vi) a material breach by Executive of any provision of this Agreement.

          

          

          

          

          

          

          

          

          

          

          
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          (d) Retirement.  This Agreement and
              the obligations hereunder shall expire on December 31 of the calendar year in which Executive attains Normal Retirement Age (“Retirement Age Termination Date”). For purposes of this Agreement, “Normal Retirement Age” shall mean age 65. 
              Nothing in this Agreement shall mandate or prohibit a continuation of Executive’s employment following the Retirement Age Termination Date, provided that Executive shall not be entitled to any benefits or payments under this Agreement upon
              termination of Executive’s employment following Retirement Age Termination Date (unless the Extended Employment Period is in effect).  Notwithstanding the foregoing, upon written notice to Executive, FLIC may extend the term of this Agreement
              for an additional two year period beyond the Retirement Age Termination Date (the “Extended Employment Period”).

          (e) Voluntary Termination by Executive.  Executive may voluntarily terminate employment during the term of this Agreement upon 30 days’ prior written notice to the Board.  FLIC may
                accelerate the date of termination upon receipt of written notice of Executive’s voluntary termination.

          

          

          (f) Termination Without Cause or
                  With Good Reason.

          
            	
                    (A)

                  	
                    The Board may terminate Executive’s employment at any time for any reason upon no less than 30 days’ written notice (a
                      termination “Without Cause”), and Executive may, by written notice to the Board, terminate his employment at any time within 90 days following
                      an event constituting “Good Reason,” as defined below (a termination “With Good Reason”); provided, however, that FLIC shall have 30 days to
                      cure the “Good Reason” condition, but FLIC may waive its right to cure.  Executive’s notice of termination With Good Reason shall notify the Company of the event that constitutes Good Reason.

                  

          

          
            	
                    (B)

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

                  

          

          
            	
                    (A)

                  	
                    the failure to appoint Executive during the Employment Period to the Executive Position;

                  

          

          
            	
                    (B)

                  	
                    a reduction in Executive’s Base Salary;

                  

          

          
            	
                    (C)

                  	
                    the failure of the Bank to maintain Executive’s participation under the Bank’s employee benefit, retirement, or
                      material fringe benefit plans, policies, practices, or arrangements in which Executive participates. For this purpose, the Bank may eliminate and/or modify existing employee benefit, retirement, or fringe benefit plans and coverage
                      levels on a consistent and non-discriminatory basis applicable to all such executives; or

                  

          

          
            	
                    (D)

                  	
                     a relocation of Executive’s principal place of employment by more than 50 miles from Executive’s principal place of
                      employment as of the initial Effective Date of this Agreement.

                  

             

            

             

            

             

            

             

            

             

            

            
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          (g) Compensation Payable Following Termination
                  of Employment.  Upon termination of Executive’s employment under this Agreement, Executive (or, if applicable, his beneficiary) shall be entitled to receive the following compensation:

          
            
              	

                    	(i)	
                      Earned but Unpaid Compensation.  FLIC shall pay Executive any
                        accrued but unpaid Base Salary for services rendered to the date of termination, any accrued but unpaid expenses required to be reimbursed under this Agreement, and any vacation accrued to the date of termination in accordance with
                        the Bank’s personnel policies.

                       

                      

                    

            

          

          
            
              	

                    	(ii)	
                      Other Compensation and Benefits.  Except as may be provided under
                        this Agreement,

                    

            

          

          
            
              	

                    	(A)	
                      any benefits to which Executive may be entitled pursuant to the plans, policies and arrangements referred to in Section 3(b) and (c) above shall be determined
                        and paid in accordance with the terms of such plans, policies and arrangements, and

                    

            

          

          
            
              	

                    	(B)	
                      Executive shall have no right to receive any other compensation, or to participate in any other plan, arrangement or benefit, with respect to future periods
                        after such termination or resignation.

                    

            

          

          (h) Additional Compensation Payable
                  Following Termination Without Cause or Termination with Good Reason.

          
            
              	

                    	(i)	
                      In addition to the compensation set forth in Section 4(g) above, Executive will receive the additional compensation and benefits set forth in this paragraph
                        (h), if the following requirements are met:

                    

            

          

          
            
              	

                    	(A)	
                      Executive’s employment is terminated pursuant to Section 4(f) above (Termination Without Cause or Termination for Good Reason), including a termination
                        following a Change in Control; and

                    

            

          

          
            
              	

                    	(B)	
                      Executive executes a release of his claims against the Bank, the Company and any affiliate, and their officers, directors, successors and assigns (the
                        “Release”), the form of which release is attached to 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 Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”),

                        the payments and benefits described in this Section 4(h) will be paid, or commence, in the second calendar year.

                    

            

          

          
            
              	

                    	(ii)	
                      If Executive meets the requirements described in clause (i) above,

                    

            

          

          
            
              	

                    	(A)	
                      FLIC shall pay Executive, or in the event of Executive’s subsequent death, Executive’s beneficiary or estate, a cash lump sum payment equal to the sum of:

                    

            

          

          
            
              	

                    	(i)	
                      two times Base Salary at the rate in effect immediately prior to his date of termination, plus

                    

               

              

               

              

               

              

               

              

              
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                    	(ii)	
                      an amount equal to the product of: (I) the reasonably estimated monthly cost of the medical, dental and vision insurance coverage maintained by the Bank for
                        Executive immediately prior to Executive’s date of termination; multiplied by (II) twenty-four (24).

                    

            

          

          Such amount shall be paid to Executive in a lump sum within ten (10) days following Executive’s date of
            termination, or if later, following the seventh (7th) day after Executive’s execution of the Release required under Section 4(h)(i)(B) hereof.

          
            	
                    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:

          
            	
                    (A)

                  	
                    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;

                  

          

          
            	
                    (B)

                  	
                    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 50% or more of a class of the Company’s or the Bank’s voting securities; provided, however, this clause
                      (B) 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;

                  

          

          
            	
                    (C)

                  	
                    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 Directors; provided, however, that for purposes of this clause (C), each director who is first elected by 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 or by the Federal Deposit Insurance Corporation (“FDIC”) shall be deemed to have also been a director at the beginning of
                      such period; or

                  

             

            

             

            

             

            

             

            

            
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                    (D)

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

                  

          

          (b) 280G Net-Best Benefit.
               Notwithstanding the preceding Sections of this Agreement, if the payments and benefits to be afforded to Executive under Section 4(h)
              hereof (the “Severance Benefits”) either alone or together with other payments and benefits which Executive has the right to receive from FLIC (or any
              affiliate) would constitute a “parachute payment” under Section 280G of the Code, and but for this Section 5(b), would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the Severance Benefits shall be reduced (the “Benefit Reduction”) by the minimum amount
              necessary to result in no portion of the Severance Benefits being subject to the Excise Tax, provided, however, that the Benefit Reduction shall only occur if such reduction would result in Executive’s “Net After-Tax Amount” attributable to
              the Severance Benefits being greater than it would be if no Benefit Reduction was effected.  For this purpose, “Net After-Tax Amount” shall mean the
              net amount of Severance Benefits Executive is entitled to under this Agreement after giving effect to all federal, state and local taxes which would be applicable to such payments and benefits, including but not limited to, the Excise Tax. 
              Nothing contained herein shall result in the reduction of any payments or benefits to which Executive may be entitled upon termination of employment and/or a change in control other than as specified in this Section 5(b), or a reduction in
              the Severance Benefits below zero.

          (c) Extension of Employment
                  Period.   In the event FLIC has entered into an agreement to effect a transaction that would be considered a Change in
              Control during the Employment Period, the Employment Period shall be extended automatically for a period ending on, and including, the 30th day following the effective date of the Change in Control (to the extent the Employment
              Period would otherwise expire, without regard to the foregoing, prior to the completion of such period).
            

            

            	
                    6.

                  	
                    COVENANTS OF EXECUTIVE.

                  

          

           

          (a) Non-Solicitation/Non-Compete.
            

          (i) Executive hereby covenants and agrees that, during the “Restricted Period” and except as provided in clause (ii) below,
              Executive shall not, without the written consent of FLIC, either directly or indirectly:

          
            	
                    (A)

                  	
                    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 FLIC, or any of its respective subsidiaries or affiliates, to terminate his or her employment with FLIC and/or accept employment with another
                      employer; or

                  

             

            

             

            

             

            

             

            

            
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                    (B)

                  	
                    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, commercial bank, credit union, bank or bank holding company, any mortgage or loan
                      broker or any other entity (excluding not-for-profit entities other than credit unions) that competes with the business of FLIC or any of their direct or indirect subsidiaries or affiliates, or that has a headquarters, or one or more
                      offices, within New York City or in the Counties of Nassau or Suffolk, New York (the “Restricted Territory”); or

                  

          

          
            	
                    (C)

                  	
                    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 FLIC to terminate an existing business or commercial relationship with FLIC.

                  

          

          (ii) The restrictions contained in Section 6(a)(i)(B) above shall not apply in the event of a Termination for Cause, or in the event of a termination of employment following a
              Change in Control.

          

          

          (iii) For purposes of this paragraph (a), the “Restricted Period” shall be a period of one (1) year following Executive’s termination of employment with FLIC.

          

          

          (b) Confidentiality.  Executive
              recognizes and acknowledges that the knowledge of the business activities, plans for business activities, and all other proprietary information of FLIC, as it may exist from time to time, is valuable, special and unique assets of the business
              of FLIC.  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 FLIC 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 FLIC.  Further, Executive may disclose information regarding the business activities of FLIC to any bank regulator having
              regulatory jurisdiction over the activities of FLIC pursuant to a formal regulatory request.  In the event of a breach or threatened breach by Executive of the provisions of this Section, FLIC will be entitled to an injunction restraining
              Executive from disclosing, in whole or in part, the knowledge of the past, present, planned or considered business activities of FLIC 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 FLIC from pursuing any other remedies available to FLIC 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 FLIC as may be reasonably required by FLIC, in connection with any litigation in which it or any of its subsidiaries or affiliates is, or may become, a party,
              and he shall be reimbursed for any expenses incurred in providing such information and assistance; provided, however, that Executive shall not be required to provide information or assistance with respect to any litigation between Executive
              and FLIC or any other subsidiaries or affiliates.

           

            

           

            

           

            

          
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          (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.

          

          

          
            	
                    7.

                  	
                    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 FLIC or any predecessor of FLIC and Executive, except that this Agreement shall not affect or operate to reduce any benefit or compensation inuring to Executive of a kind expressly provided elsewhere.

          
            	
                    8.

                  	
                    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) FLIC’s obligations under this Agreement shall be binding on any and all successors or assigns, whether direct or indirect, by
              purchase, merger, consolidation or otherwise, to all or substantially all the business or assets of FLIC, in the same manner and to the same extent that FLIC would be required to perform if no such succession or assignment had taken place.
            

            

            	
                    9.

                  	
                    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.

          
            	
                    10.

                  	
                    MISCELLANEOUS PROVISIONS.

                  

             

           

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

          (a) FLIC may terminate Executive’s employment at any time, but any termination by the 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 for any period after Executive’s termination for Cause.

          (b) Notwithstanding anything herein contained to the contrary, any payments to Executive 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.

           

            

           

            

           

            

          
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          (c) In the event that FLIC provides written notice of non-renewal of the Agreement to the Executive in accordance with Section 1 hereof, and
              Executive’s employment is terminated subsequent to the expiration of the Employment Period, the provisions and obligations of the parties under this Agreement shall have expired and be of no force and effect, and therefore FLIC shall have no
              obligations to make payments to Executive under Section 4 of this Agreement.

          (d) The parties intend that this Agreement and any payments and benefits payable hereunder shall either comply with, or be exempt
              from, the requirements of Code Section 409A, and this Agreement shall be maintained, administered, and interpreted consistent with that intention.  Notwithstanding any provision herein to the contrary, FLIC makes no representations concerning
              Executive’s tax consequences under this Agreement under Code Section 409A, or any other federal, state, or local tax law.  Executive’s tax consequences will depend, in part, upon the application of relevant tax law, including Code Section
              409A, to the relevant facts and circumstances.  Notwithstanding anything else in this Agreement to the contrary (with the exception of Section 4(c)), 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 FLIC 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). Each payment under this Agreement is intended to be a “separate payment” and not of a series of payments for purposes of Code Section 409A.

          (e) 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 (other than due to disability or death), 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.

          (f) 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 FLIC.  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 FLIC 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.

           

            

           

            

           

            

          
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          (g) In the event of Executive’s death, his beneficiary shall be his surviving spouse.  Alternatively, Executive may designate other
              beneficiaries.  If Executive’s spouse does not survive him, or if no beneficiary designation is in effect at the time of Executive’s death, then payments due thereafter shall be made to the Executive’s estate.

          
            	
                    11.

                  	
                    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.

          
            	
                    12.

                  	
                    GOVERNING LAW.

                  

          

           

          This Agreement shall be governed by the laws of State of New York, but only to the extent not superseded by
            federal law.

          
            	
                    13.

                  	
                    ARBITRATION.

                  

          

           

          (a) 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 FLIC 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 FLIC; all other costs of arbitration shall be borne by the respective parties.

          (b) If Termination For Cause is disputed by Executive, and if it is determined in arbitration that Executive is entitled to compensation and
              benefits under Section 4(h) of this Agreement, the payment of such compensation and benefits by the Bank shall commence immediately following the date of resolution by arbitration, with interest due Executive on the cash amount that was not
              paid pending arbitration (at the prime rate as published in The Wall Street Journal from time to time).

          
            	
                    14.

                  	
                    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:

          

          

          

          

          

          

          

          

          
            11

            
              

          

          	
                  To FLIC:

                	
                  The First of Long Island Corporation

                  10 Glen Head Road

                  Glen Head, New York 11545

                  Attn: Chairman of the Board

                   

                   

                
	
                  To Executive:

                	
                  To the most recent address on file with the Bank.

                
	 	 

          

          

          

          

          [Signature Page Follows]

           

          

           

          

           

          

           

          

           

          

           

          

           

          

          
            12

            
              

          

          

          

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

          

          

          	 	
                  THE FIRST OF LONG ISLAND CORPORATION

                
	 	
                  

                  

                
	 	 
	 	
                  By: /s/ Christopher Becker

                
	 	
                  Name: Christopher Becker

                
	 	
                  Title: President and Chief Executive Officer

                
	 	
                   

                   

                  

                
	 	
                  THE FIRST NATIONAL BANK OF LONG ISLAND

                
	 	
                  

                  

                
	 	 
	 	
                  By: /s/ Christopher Becker

                
	 	
                  Name: Christopher Becker

                
	 	
                  Title: President and Chief Executive Officer

                
	 	 
	 	 
	 	
                  EXECUTIVE

                   

                   

                
	 	/s/ Jay P. McConie

                
	 	Jay P. McConie
	 	 

          

          

          

          

        

      

    

  

  13

   

    

  
    
      

  

  
    RELEASE

    

    

    Pursuant to Section 4(h)(ii) of the Employment Agreement between The First of
        Long Island Corporation (the “Company”), The First National Bank of Long
        Island (the “Bank”) and Jay P. McConie (“Executive”), effective January 1, 2020 (herein after, the “Agreement”), Executive is entitled to a cash lump sum severance payment (the “Severance Payment”) in connection with his termination of employment.   As a condition to receiving the
        Severance Payment, Executive shall have executed and not timely revoked this release (this “Release”) in accordance with the terms and conditions
      below by no later than the 60th day following Executive’s termination of employment.  

    

    

    Intending to be legally bound, Executive hereby, on behalf of Executive and
        Executive’s heirs, executors, administrators, successors and assigns, fully, finally and forever releases and discharges the Company, the Bank, as well as their predecessors, successors and assigns, and all of their respective parent, subsidiary, related and affiliated companies, officers, owners, directors, agents,
        representatives, attorneys, and employees (all of whom are referred to throughout this Release as the “Parties”), of and from all claims, charges, demands, actions, causes of action, complaints, suits, controversies, proceedings, promises, agreements, liabilities, debts, obligations, judgments, rights, fees,
        damages, losses, and expenses, of any and every nature whatsoever, in law or in equity, known or unknown, suspected or unsuspected (collectively, “Claims”), as a result of: (i) actions or omissions occurring through the execution date of this
        Release; or (ii) any agreement, arrangement or promise between Executive and any Party.  Specifically included in this waiver and release are, among other things, any and all Claims related to the Agreement, Claims of alleged employment
        discrimination, either as a result of the separation of Executive’s employment or otherwise, under the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, Title VII of the Civil Rights Act of 1964, the Family and Medical
        Leave Act, the Americans with Disabilities Act, the Employee Retirement Income Security Act of 1974, the Worker Adjustment and Retraining Notification Act, as amended by applicable New York law and all of their respective implementing regulations
        and/or any other federal, state or local statute, rule, ordinance, or regulation, as well as any Claims for compensation of any type whatsoever, alleged wrongful discharge, negligent or intentional infliction of emotional distress, breach of
        express or implied contract, quasi-contract, promissory estoppel, detrimental reliance, fraud, defamation, or any other unlawful behavior, the existence of which is specifically denied by the Parties.  The foregoing list is intended to be
        illustrative rather than inclusive. Executive waives the rights and Claims to the extent set forth above, and Executive also agrees not to institute, or have instituted, a lawsuit against the Parties based on any such waived Claims or rights.

    

    

    Nothing in this Release, however, shall be construed to prohibit Executive from filing a charge or participating in any investigation or
      proceeding conducted by the Equal Employment Opportunity Commission or other federal, state or local agency.  Notwithstanding the foregoing, Executive waives Executive’s right to recover monetary or other damages as a result of any Claim filed by
      Executive or by anyone else on Executive’s behalf, including a class or collective action, whether or not Executive is named in such proceeding.

     

    

     

    

     

    

     

    

    
      
        

    

    
    Further, nothing in this Release is intended to waive Executive’s entitlement to: (i) any earned but unpaid compensation or benefits from
      the Bank or any affiliate of the Bank; (ii) the Severance Payment; (iii) vested or accrued benefits under any tax-qualified or nonqualified employee benefit plan sponsored by the Company or the Bank; (iv) equity awards under the Company’s stock
      plans, but subject to the treatment thereof set forth in the plans and underlying award agreements; (v) Executive’s right to elect health care continuation coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) at Executive’s expense (if Executive is eligible for COBRA coverage); and (vi) indemnification and directors’ and officers’ insurance coverage applicable
      to the fullest extent permitted under applicable law and as provided in the Bank’s or the Company’s charter, bylaws and directors’ and officers’ liability insurance policy.  Moreover, this Release does not waive claims that Executive could make, if
      available, for unemployment or workers’ compensation.

    

    

    Finally, this Release does not limit 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 Company or the Bank.  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 Company or the Bank 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.

    

    

    Executive affirms that, absent Executive’s execution of this Release, Executive would not be entitled to the Severance Payment and is therefore receiving
      consideration to which Executive would not otherwise be entitled to receive.  Executive also affirms that the only consideration for Executive signing this Release is that set forth in Section 4(h) of the Agreement, that no other promise or agreement
      of any kind has been made to or with Executive by any person or entity to cause Executive to execute this Release, and that Executive fully understands the meaning and intent of this Release, including but not limited to, its final and binding
      effect.

    

    

    Executive also affirms that Executive shall be subject to the covenants set forth in Section 6 of the Agreement.

    

    

    Executive acknowledges that Executive has carefully read and reviewed this Release and has been advised to seek the advice of an attorney, and Executive
      has had an opportunity to consult with and receive counsel from an attorney concerning the terms of this Release.

    

    

    Executive understands and is satisfied with the terms and contents of this Release and voluntarily has signed Executive’s name to the same as a free act
      and deed.  Executive agrees that this Release shall be binding upon Executive and Executive’s agents, attorneys, personal representatives, heirs, and assigns.  Executive acknowledges that Executive has been given a period of at least 45 days from date of receipt within which to consider and sign this Release, which shall not be signed by Executive before Executive’s last day of employment.  To the extent Executive has executed this
        Release less than 45 days after its delivery to Executive, Executive hereby acknowledges that Executive’s decision to execute this Release prior to the expiration of such 45-day period was entirely voluntary.  Executive further acknowledges
      that a list of the ages and job titles of the employees within the decisional unit who were and were not selected for termination and the offer of consideration in exchange for signing this Release is attached hereto as Exhibit A.  By signing below Executive acknowledges that Executive received a copy of this list.

    

    

     

    

     

    

     

    

     

    

    
      2

      
        

    

    Executive acknowledges that Executive will be given seven (7) days from the date Executive signs this Release to change Executive’s mind and revoke this
      Release.  If Executive does not revoke this Release within seven (7) days of Executive’s signing, this Release will become final and binding on the day following such seven (7) day period.

    

    

    In the event that any one or more of the provisions of this Release shall be held to be invalid, illegal or unenforceable, the validity, legality and
      enforceability of the remainder of this Release shall not in any way be affected or impaired thereby.  This Release shall inure to the benefit of and be binding upon the Company, the Bank, their affiliates, any successor organization which shall
      succeed the Company or the Bank by merger, acquisition or consolidation or operation of law and their assigns. This Release shall be binding upon the Executive and his assigns, heirs and legal representatives.  This Release shall be governed by the
      law of the State of New York without reference to its choice of law rules.

    

    

    Any notice to revoke this Release will be deemed properly given or made if
        personally delivered or, if mailed, when mailed by registered or certified mail, postage prepaid to The First of Long Island Corporation at its principal business office, to the attention of the President.  The principal business office of
      The First of Long Island Corporation is located at 10 Glen Head Road, Glen Head, New York 11545.

    

    

    [Remainder of page is intentionally left blank]

    

    

    

    

    
      3

      
        

    

    

    

    By executing this Release, Executive acknowledges that Executive has had the opportunity to consult with an attorney
      of Executive’s choice; that Executive has carefully reviewed and considered this Release; that Executive understands the terms of this Release; and that Executive voluntarily agrees to them.

    

    

    

    

    EXECUTIVE

    ___________________________

    Date:

    (On or after Executive’s last day of employment)

    

    

    

    

    THE FIRST OF LONG ISLAND CORPORATION

    

    

    

    

    ___________________________

    By:

    Title:

    Date:

    

    

    

    

    THE FIRST NATIONAL BANK OF LONG ISLAND

    

    

    

    

    ___________________________

    By:

    Title:

    Date:

    

    

    

    

    

    

    

    

    

    

    

    

    
      4

      
        

    

    EXHIBIT A

    

    

    REQUIRED SEPARATION PROGRAM INFORMATION

    

    

    1. The decisional unit consists of those employees who were employed by The First National Bank of Long Island, Glen Head, New York as of ___________ and who were covered by
        pre-existing employment agreements as of that date.

    

    

    2. Executive is being offered the opportunity to sign and accept this Release, which contains consideration to which they were not otherwise entitled in exchange for the execution
        and non-revocation of the Release.

    

    

    3. Executive must sign the Release within 45 days of receiving the Release in order to accept it, and has seven (7) days after signing the Release to revoke it.

    

    

    4. The following is a list of the ages and job titles of the employees within the decisional unit who were and were not selected for termination and the offer of consideration in exchange for signing the Release.

    

    

    	
            Job Title

          	
            Age

          	
            Selected

          	
            Not Selectedex_168539.htm

Exhibit 10.1

  

Option Number: [   ]

 

THERMOGENESIS HOLDINGS, INC.

Notice of Grant of Director Stock Options and Option Agreement

 

 

 

 

 

Dear Participant:

 

Pursuant to the terms and conditions of the ThermoGenesis Holdings, Inc. 2016 Equity Incentive Plan (as amended from time to time, the “Plan”), you have been granted a Non-Qualified Stock Option to purchase [ ] shares of common stock (the “Option”) as outlined below.

    

	 	Granted To: 
	 	Grant Date:  
	 	Options Granted: 
	 	Exercise Price per Share:
	 	Expiration Date: 
	 	Vesting Schedule: 

 

 

Any portion of this Option not exercised prior to the Expiration Date will become null and void.

 

This Option grant is subject to all of the Terms and Conditions attached hereto and incorporated herein by reference. The capitalized terms used in this Option will have the same meanings as set forth in the Plan. A Summary of the Plan and a copy of the Plan is provided herewith.

 

	THERMOGENESIS HOLDINGS, INC.	PARTICIPANT
	 	 
	By: ____________________________(signature) 	___________________________ (signature)   
	 	 
	 	 
	Date: ___________	Date: _____________

 

Notice: All notices to be given by either party to the other will be in writing and may be transmitted by overnight courier; or mail, registered or certified, postage prepaid with return receipt requested; or personal delivery; or facsimile transmission, provided, however, that notices of change of address or facsimile number will be effective only upon actual receipt by the other party. Notices will be delivered to ThermoGenesis Holdings, Inc., 2711 Citrus Road, Rancho Cordova, California 95742, Attn: Corporate Secretary and to the Participant at the last known address of the Participant as provided to ThermoGenesis Holdings, Inc. 

 

 

 

 

Terms And Conditions Of

Option Agreement

 

ThermoGenesis Holdings, Inc. is referred to as “Company” and the person to whom the Option is granted is referred to as “Participant”.

 

1.          Plan Controls. The terms contained in the Plan are incorporated into and made a part of this Option and this Option will be governed by and construed in accordance with the Plan. In the event of any actual or alleged conflict between the provisions of the Plan and the provisions of this Option, the provisions of the Plan will be controlling and determinative.

 

2.          Manner of Exercise. The vested portion of this Option may be exercised from time to time, in whole or in part, by delivery to the Company at its principal office of a stock option exercise agreement (the “Exercise Agreement”) substantially in the form attached hereto (the “Form”), which need not be the same for each Participant, stating the number of shares being purchased, the restrictions imposed on the shares purchased under such Exercise Agreement, if any, and such representations and agreements regarding the Participant’s investment intent and access to information and other matters, if any, as may be required or desirable by the Company to comply with applicable securities laws. The Form must be duly executed by Participant and be accompanied by payment in cash, or by check payable to the Company, in full for the Exercise Price for the number of shares being purchased. Alternatively, but only if the Administrator authorizes at the time of exercise at its sole discretion, and where permitted by law (i) by surrender of shared of stock of the Company that have been owned by the Participant for more than six (6) months or lesser period if the surrender of shares is otherwise exempt from Section 16 of the Exchange Act and if such shares were purchased from the Company by use of a promissory note, such note has been fully paid with respect to such shares, (ii) by forfeiture of shares equal to the value of the exercise price pursuant to a “deemed net-stock exercise” as provided for in the Plan, (iii) by broker sale by following the required instructions therefor including as so authorized by the Administrator and its sole discretion instructions to a broker to deliver promptly to the Company the amount of sale or loan proceeds necessary to pay the exercise price and the amount of any required tax or other withholding obligations, or (iv) by any combination of the foregoing methods of payment or any other consideration or method of payment.

 

3.          Privileges Of Stock Ownership. Participant will not have any of the rights of a stockholder with respect to any shares until the shares are issued to Participant. The Company will issue (or cause to be issued) such stock certificate promptly upon exercise of this Option. All certificates for shares or other securities delivered will be subject to such stock transfer orders, legends and other restrictions as the Administrator may deem necessary or advisable, including restrictions under any applicable federal, state or foreign securities law, or any rules, regulations and other requirements of the Securities and Exchange Commission (“SEC”) or any stock exchange or automated quotation system upon which the shares may be listed or quoted. No adjustment will be made for a dividend or other right for which the record date is prior to the date the stock certificate is issued.

 

4.          Notification of Disposition. Participant agrees to notify the Company in writing within 30 days of any disposition of shares acquired pursuant to the exercise of this Option. 

 

5.          Withholding. The Company may require the Participant to remit to the Company by cash or check payable to the Company, an amount sufficient to satisfy federal, state and local taxes and FICA withholding requirements whenever shares are to be issued upon exercise of this Option or shares are forfeited pursuant to the “deemed net-stock exercise”, or when under applicable tax laws, Participant incurs tax liability in connection with the exercise or vesting of this Option. Any such payment must be made promptly when the amount of such obligation becomes determinable. In lieu thereof, the Company may withhold the amount of such taxes from any other sums due or to become due from the Company as the Administrator will prescribe.

 

2

 

 

To the extent permissible by law, and at its sole discretion, the Administrator may permit the Participant to satisfy any such withholding tax at the time of exercise, in whole or in part, with shares up to an amount not greater than the Company’s minimum statutory withholding rate for federal and state tax purposes, including payroll taxes.  The Administrator may exercise its discretion, by (i) directing the Company to apply shares to which the Participant is entitled as a result of the exercise of this Option, or (ii) delivering to the Company shares owned by the Participant for more than six (6) months, unless the delivery of the shares is otherwise exempt from Section 16 of the Exchange Act; but Participant may only satisfy his or her withholding obligation with shares that are not subject to any repurchase, forfeiture, unfulfilled vesting or other similar requirements.

 

6.           Exercise After Certain Events.

           

6.1.      Termination of Directorship. If for any reason, including permanent and total disability or death, Optionee cases to be a director of the Company, or a subsidiary, vested Options held at the date of such termination may be exercised, in whole or in part, at any time during the period specified in the Agreement (but in no event after the earlier of (i) the expiration of this Option and (ii) 10 years from the Grant Date).

 

7.           Restrictions on Transfer of Option. This Option will not be transferable by Participant other than by will or by the laws of descent and distribution and during the lifetime of Participant, only Participant, his guardian or legal representative may exercise this Option except that Participant may transfer this Option to a spouse pursuant to a property settlement, agreement, or court order incident to a divorce. In addition, at the discretion of the Administrator, this Option may be transferred without payment of consideration to the following family members of Participant, including adoptive relationships: a child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, niece, nephew, former spouse (whether by gift or pursuant to a domestic relations order), any person sharing the Participant’s household (other than a tenant or Participant), a family-controlled partnership, corporation, limited liability company and trust, or a foundation in which family members heretofore described control the management of assets. The assigned portion may only be exercised by the person or persons who acquire a proprietary interest in this Option pursuant to the assignment. The terms applicable to the assigned portion will be the same as those in effect for this Option immediately prior to such assignment and will be set forth in such documents issued to the assignee as the Administrator may deem appropriate. A request to assign an Option may be made only by delivery to the Company of a written stock option assignment request in a form approved by the Administrator, stating the number of Options and shares underlying Options requested for assignment, that no consideration is being paid for the assignment, identifying the proposed transferee, and containing such other representations and agreements regarding the Participant’s investment intent and access to information and other matters, if any, as may be required or desirable by the Company to comply with applicable securities laws.

 

3

 

 

Participant may designate a beneficiary to exercise this Option after Participant’s death. If no beneficiary has been designated or survives Participant, payment will be made to Participant’s estate. Subject to the foregoing, a beneficiary designation may be changed or revoked by Participant at any time, provided the change or revocation is filed with the Administrator.

 

8.            Dissolution, Liquidation and Merger.

 

8.1.     Company Not The Survivor. In the event of a dissolution or liquidation of the Company, a merger, consolidation, combination or reorganization in which the Company is not the surviving corporation, or a sale of substantially all of the assets of the Company (as determined in the sole discretion of the Board), the Administrator, in its absolute discretion, may cancel this Option upon payment in cash or stock, or combination thereof, as determined by the Board, to Participant of the amount by which any cash and the fair market value of any other property which Participant would have received as consideration for the shares covered by this Option if the Option had been exercised before such liquidation, dissolution, merger, consolidation, combination, reorganization or sale exceeds the Exercise Price of this Option or negotiate to have this Option assumed by the surviving corporation. In addition to the foregoing, subject to any provisions set forth in a written employment agreement or change-in-control agreement (or similar written agreement) between the Company and Participant, in the event of a dissolution or liquidation of the Company, or a merger, consolidation, combination or reorganization, in which the Company is not the surviving corporation, the Administrator, in its absolute discretion, may accelerate the time within which this Option may be exercised.

 

8.2.     Company is the Survivor. In the event of a merger, consolidation, combination or reorganization in which the Company is the surviving corporation, the Board will determine the appropriate adjustment of the number and kind of securities with respect to which outstanding Options may be exercised, and the exercise price at which outstanding Options may be exercised. The Board will determine, in its sole and absolute discretion, when the Company will be deemed to survive for purposes of the Plan. 

 

9.            No Obligation To Employ. Nothing in the Plan or this Option will confer or be deemed to confer on any Participant any right to continue in the employ of, or to continue any other relationship with, the Company or a subsidiary, or to limit in any way the right of the Company or a subsidiary, to terminate Participant’s employment or other relationship at any time, with or without cause.

 

10.           Compliance With Code Section 162(m). At all times when the Administrator determines that compliance with Code Section 162(m) is required or desired, this Option if granted to a named executive officer (as defined under the rules and regulations promulgated by the SEC) will comply with the requirements of Section 162(m). In addition, in the event that changes are made to Section 162(m) to permit greater flexibility with respect to this Option, the Administrator may, subject to this provision make any adjustments it deems appropriate.

 

4

 

 

11.           Compliance With Code Section 409A. Notwithstanding any provision of the Plan to the contrary, if any provision of the Plan or this Option contravenes any regulations or Treasury guidance promulgated under Code Section 409A or could cause this Option or any Award to be subject to the interest and penalties under Section 409A, such provision of the Plan, this Option will be modified to maintain, to the maximum extent practicable, the original intent of the applicable provision without violating the provisions of Section 409A. In addition, in the event that changes are made to Section 409A to permit greater flexibility with respect to this Option, the Administrator may make any adjustments it deems appropriate.

 

12.           Code Section 280G. Notwithstanding any other provision of the Plan to the contrary, if the right to receive or benefit from this Option, either alone or together with payments that Participant has a right to receive from the Company, would constitute a “parachute payment” (as defined in Code Section 280G), all such payments will be reduced to the largest amount that will result in no portion being subject to the excise tax imposed by Code Section 4999.

 

13.           Securities Law And Other Regulatory Compliance. The Company will not be obligated to issue any shares upon exercise of this Option unless such shares are at that time effectively registered or exempt from registration under the federal securities laws and the offer and sale of the shares are otherwise in compliance with all applicable securities laws. The Company will be under no obligation to register the shares with the SEC or to effect compliance with the registration, qualification or listing requirements of any state securities laws, stock exchange or automated quotation system, and the Company will have no liability for any inability or failure to do so. Upon exercising all or any portion of this Option, Participant may be required to furnish representations or undertakings deemed appropriate by the Company to enable the offer and sale of the shares or subsequent transfers of any interest in such shares to comply with applicable securities laws. Evidences of ownership of shares acquired upon exercise of this Option will bear any legend required by, or useful for purposes of compliance with, applicable securities laws, the Plan or this Option.

 

14.           Arbitration.

 

14.1     General. Any controversy, dispute, or claim arising out of or relating to this Option which cannot be amicably settled within thirty (30) days (or such longer period as may be mutually agreed upon) from the date either the Company or Participant notifies the other in writing that such dispute or disagreement exists will be settled by arbitration. Said arbitration will be conducted in accordance with the Commercial Arbitration Rules of the American Arbitration Association.

 

14.2     Injunctive Actions. Nothing herein contained will bar the right of either the Company or Participant to seek to obtain injunctive relief or other provisional remedies against threatened or actual conduct that will cause loss or damages under the usual equity rules including the applicable rules for obtaining preliminary injunctions and other provisional remedies.

 

15.          Tax Effect. The federal and state tax consequences of stock options are complex and subject to change. Each person should consult with his or her tax advisor before exercising this Option or disposing of any shares acquired upon the exercise of this Option.

 

5

 

 

16.          Entire Agreement. This Option including the Terms and Conditions and the Plan constitute the entire contract between the Company and Participant hereto with regard to the subject matter hereof. They supersede any other agreements, representations or understandings (whether oral or written and whether express or implied), which relate to the subject matter hereof.

 

17.          Severability. In the event that any portion of this Agreement is found to be unenforceable, the remaining portions of this Agreement will remain valid and in full force and effect.

 

18.          Choice of Law. This Agreement will be governed by, and construed in accordance with, the laws of the State of Delaware, as such laws are applied to contracts entered into and performed in such State.

 

19.          Binding Effect. This Agreement will inure to the benefit of, and be binding upon, the parties hereto and their respective heirs, executors, and successors.

 

6

 

 

THERMOGENESIS HOLDINGS, INC.

Notice of Intent to Exercise ThermoGenesis Holdings, Inc. Stock Options

 

 

To: Stock Administrator 

 

 

I hereby give notice to ThermoGenesis Holdings, Inc. of my intent to exercise the following stock options on ______________, 20___:

 

	
			(A)

				
			(B)

				
			(C)

				
			(B X C)

			
	
			Grant Date

				
			Number of Options

				
			Exercise Price

				
			Payment Due

			

 

 

 

 

 

 

 

 

Method of Payment

 

	_____	Personal Check
	 	 
	_____	Exchange of Previously Owned Shares
	 	 
	_____	Deemed Net Stock Exercise
	 	 
	_____	Broker Check (Same Day Sale)
	 	 
	 	Brokerage Company _________________________

        

Your method of payment may result in a tax liability including alternative minimum tax. You are strongly urged to consult your tax advisor before exercising your options.

 

	____________________________________	_____________________
	Signature	Date
	 	 
	____________________________________	 
	Name

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