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Unassociated Document

    EMPLOYMENT
      AGREEMENT 

     

    

    EMPLOYMENT
      AGREEMENT (this "Agreement") dated as of March
      12,
      2007 among Great Lakes Bancorp, Inc. a Delaware corporation having its principal
      place of business at 2421 Main Street, Buffalo, New York 14214 ("GLB"), Greater
      Buffalo Savings Bank, a New York chartered savings bank having its principal
      place of business at 2421 Main Street, Buffalo, New York 14214 ("GBSB") and
      Peter B. Babiarz, an individual residing at 106 Viscount Drive,
      Williamsville, New York 14221 (the "Executive"). GLB, GBSB and the Executive
      are
      collectively the Parties and individually a Party.

     

    WITNESSETH:

     

    WHEREAS,
      GBSB is a wholly owned subsidiary of GLB; 

     

    WHEREAS,
      GLB and GBSB (collectively, the "Employers") desire to employ the Executive,
      and
      the Executive desires to be employed by the Employers, all in accordance with
      the terms and subject to the conditions set forth herein; and 

     

    WHEREAS,
      the Parties are entering into this Agreement to set forth and confirm their
      respective rights and obligations with respect to the Executive's employment
      by
      the Employers. 

     

    NOW,
      THEREFORE, in consideration of the promises and the mutual covenants herein
      contained, the Parties hereto, intending to be legally bound hereby, mutually
      agree as follows: 

     

    1.  Employment
      and Term.
      

     

    (a)  Effective
      as of March 12, 2007 (the "Effective Date"), (i) GLB shall employ the Executive,
      and the Executive shall be employed by GLB, as the Executive Vice President
      and
      Chief Credit Officer of GLB and (ii) GBSB shall employ the Executive, and the
      Executive shall be employed by GBSB, as the Executive Vice President and Chief
      Credit Officer of GBSB (with all such positions described in clauses (i) and
      (ii) hereof being collectively referred to herein as the "Position"), in
      accordance with the terms and subject to the conditions set forth herein for
      a
      term (the "Term") that shall commence on the Effective Date and, subject to
      Sections 1(b), l(c), and l(d), shall continue for a period of two years. The
      Employers shall be jointly and severally liable to the Executive with respect
      to
      (i) all liabilities of GBSB to the Executive hereunder and (ii) all liabilities
      of GLB to the Executive hereunder; provided, however, that GLB shall not be
      responsible for any liability of GBSB to the Executive to the extent that such
      liability has been discharged by GBSB, and GBSB shall not be responsible for
      any
      liability of GLB to the Executive to the extent that such liability has been
      discharged by GLB. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)  Unless
      written notice in accordance with Section 1(c) or 1(d), as the case may be,
      terminating the Executive's employment under this Agreement is given by (i)
      either of the Employers or (ii) the Executive, the Employers shall have the
      option to renew this Agreement for additional one year terms (“Renewal Term”) on
      an annual basis thereafter by providing the Executive with ninety (90) days
      written notice of the intent to renew. Unless otherwise provided in this
      Agreement or as agreed by the Employers and the Executive, all of the terms
      and
      conditions of this Agreement shall continue in force and effect throughout
      the
      Term and any Renewal Term. In the event the Employers do not exercise their
      right to a Renewal Term, the Executive shall use his best efforts during the
      remaining period of the Term to effectuate the orderly transition of his duties
      in whatever manner the Employers direct.

     

    (c)  Notwithstanding
      Section 1(b), the Employers, by action of their Boards of Directors (the
      "Boards") and effective as of the date specified in a written notice to the
      Executive in accordance with the terms of this Agreement, shall have the right
      to terminate the Executive's employment under this Agreement at any time during
      the Term or any Renewal Term (i) for Cause (as hereafter defined), (ii) other
      than for Cause, or (iii) on account of the Executive's death or Permanent
      Disability (as defined in this Agreement).

     

    
      
        
        

      

      
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    (d)  Notwithstanding
      Section 1(b), the Executive, effective as of the date specified in a written
      notice provided no less than 30 days in advance, shall have the right to
      terminate his employment under this Agreement at any time during the Term (i)
      for Good Reason (ii) without Good Reason or (iii) in the event a Change in
      Control occurs. 

     

    (e)  As
      used
      in this Agreement,

     

    (i)  "Cause"
      shall mean (A) the Executive's willful and continued failure substantially
      to
      perform his duties with the Employers as set forth in this Agreement, or the
      commission by the Executive of any act constituting a violation under any
      federal, state or local law or regulation applicable to the activities of GBSB
      or GLB, in each case, after notice thereof from the Employers to the Executive
      and a reasonable opportunity for the Executive to cease such failure, breach
      or
      violation in all material respects, (B) an act of dishonesty, fraud or material
      misrepresentation, breach of fiduciary duty, or other acts that cause damage
      to
      the property or business of GBSB or GLB by the Executive, (C) the Executive's
      repeated absences from work such that he is unable to perform his duties under
      this Agreement other than for physical or mental impairment or illness, (D)
      the
      Executive's conviction of, or plea of nolo contendere to, any crime referenced
      in Section 19 of the Federal Deposit Insurance Act, (E) the Executive's
      conviction of, or plea of nolo contendere to, any felony or any other crime
      that, in the reasonable judgment of the Boards, adversely affects GBSB's or
      GLB's reputation or the Executive's ability to carry out his obligations under
      this Agreement, (F) the Executive's non-compliance with the provisions of
      Section 2(b) of this Agreement after notice thereof from the Employers to the
      Executive and a reasonable opportunity for the Executive to cure such
      non-compliance, or (G) the Executive’s failure to achieve or attain the goals
      and objectives as established from time to time by the Board and agreed to
      by
      the Executive. 

     

    
      
        
        

      

      
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    (ii)  "Permanent
      Disability" shall mean a physical or mental disability such that the Executive
      is, with or without reasonable accommodation, substantially unable to perform
      the duties of his Position and the nonperformance of such duties has continued
      for a period of six months or for an aggregate of nine months during any 12
      month period, provided, however, that in order to terminate the Executive's
      employment under this Agreement on account of Permanent Disability, the
      Employers must provide the Executive with written notice, not less than 30
      days
      prior to the date of termination specified in such notice, of the Boards' good
      faith determination, based on a medical opinion of a physician selected by
      the
      Employers and reasonably acceptable to the Executive, to terminate the
      Executive's employment under this Agreement for reason of Permanent Disability.
      Until the specified effective date of termination by reason of Permanent
      Disability, the Executive shall continue to receive compensation at the rates
      set forth in Section 3. No termination of the Executive's employment under
      this
      Agreement because of Permanent Disability shall impair any rights of the
      Executive under any disability insurance policy maintained by the Employers.
      

     

    (iii)  "Good
      Reason" shall mean: (A) the Executive's Position or the scope of the Executive's
      authority, duties or responsibilities as described in this Agreement are
      materially diminished without the Executive's written consent, excluding for
      this purpose any action not taken by the Employers in bad faith and that is
      remedied by the Employers promptly following written notice thereof from the
      Executive to the Employers; (B) a material breach by either Employer of its
      respective obligations to the Executive under this Agreement, which breach
      is
      not cured in all material respects to the reasonable satisfaction of the
      Executive within 30 days (except in the case of a payment default for which
      the
      cure period shall be 10 days), in each case following written notice thereof
      from the Executive to the Employers, or (C) any termination of the Executive's
      employment under this Agreement without Cause; and 

     

    
      
        
        

      

      
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    (iv)  "Change
      of Control" shall mean: (A) the acquisition of shares of GLB by any "Person"
      or
      "Group" (as such terms are used in Rule 13d-3 under the Securities Exchange
      Act
      of 1934 as now or hereafter amended) in a transaction or series of transactions
      that result in such person or group directly or indirectly first owning
      beneficially more than 50% of GLB's Common Stock after the date of this
      Agreement, or (B) the consummation of a merger or other business combination
      after which the holders of voting capital stock of GLB immediately prior to
      the
      transaction do not collectively own 50% or more of the voting capital stock
      (immediately following the transaction) of the entity surviving such merger
      or
      other business combination, or (C) a sale of all or substantially all of the
      assets or earning power of GLB, taken as a whole (with the stock or other
      ownership interests of GLB in any of its Affiliates constituting assets of
      GLB
      for this purpose) to a Person that is not an Affiliate of GLB, or (D) as the
      result of or in connection with any cash tender offer or exchange offer, merger
      or other business combination, sale of assets or contested election of directors
      or any combination of the foregoing transactions (a "Transaction"), the persons
      who constituted a majority of the members of the Board of Directors of GLB
      on
      the Effective Date and persons whose election as members of the Board of
      Directors of GLB was approved by such members then still in office or whose
      election was previously so approved after the Effective Date, but before the
      event that constitutes a Transaction, no longer constitute such a majority
      of
      the members of the Board of Directors of GLB then in office. A Transaction
      constituting a Change of Control shall be deemed to have occurred only upon
      the
      closing of the Transaction. 

     

    
      
        
        

      

      
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    (v)  An
      “Affiliate” of, or a Person “Affiliated” with, a specified Person, shall mean: a
      Person that directly, or indirectly through one or more intermediaries, controls
      or is controlled by, or is under common control with, the Person
      specified.

     

    2.  Duties
      of the Executive.
      

     

    (a)  Subject
      to the ultimate control and discretion of the Boards of the Employers, the
      Executive shall serve in the Position and perform all duties and services
      commensurate with the Position. Throughout the Term or Renewal Term, the
      Executive shall perform all duties reasonably assigned or delegated to him
      under
      the by-laws of the Employers or from time to time by the Boards consistent
      with
      the Position. Except for travel normally incidental and reasonably necessary
      to
      the business of the Employers and the duties of the Executive under this
      Agreement, the duties of the Executive shall be performed from an office
      location not greater than 20 miles from the Greater Buffalo, New York area.
      

     

    (b)  The
      Executive shall devote substantially all of the Executive's business time and
      attention to the performance of the Executive's duties under this Agreement
      and,
      during the term of his employment under this Agreement, the Executive shall
      not
      engage in any other business enterprise that requires any significant amount
      of
      the Executive's personal time or attention, unless granted by the prior
      permission of the Boards. The foregoing provision shall not prevent the
      Executive's purchase, ownership or sale of any interest in, or the Executive's
      engaging, but not to exceed an average of five hours per week, in any business
      that does not compete with the business of the Employers or the Executive's
      involvement in charitable or community activities, provided, that the time
      and
      attention that the Executive devotes to such business and charitable or
      community activities does not interfere with the performance of his duties
      under
      this Agreement and that the greatest portion of the time devoted by the
      Executive to charitable or community activities are devoted to charitable or
      community activities within GBSB's market area and further provided that such
      conduct complies in all respects with applicable policies of the Employers.
      

     

    
      
        
        

      

      
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    (c)  The
      Executive shall be entitled to four weeks of vacation leave during each calendar
      year with full compensation, and to be taken at such time or times, as the
      Executive and the Employers shall mutually determine. Earned but unused vacation
      shall be accrued in accordance with the Employers' vacation policy as in effect
      from time to time. 

     

    3.  Compensation.
      For all
      services to be rendered by the Executive under this Agreement: 

     

    (a)  The
      Employers shall pay the Executive a base salary (the "Base Salary") at an annual
      rate of $140,000, plus such other compensation as may, from time to time, be
      determined by the Employers in their sole discretion. The Base Salary will
      be
      increase to an annual rate of $150,000 at the end of the month during which
      the
      Executive completed six months of employment. At the end of each fiscal year
      of
      the Employers, the Employers shall review the amount of the Executive's Base
      Salary, and shall consider increasing but not decreasing such Base Salary for
      the following year to such amount as the Boards may determine in their sole
      discretion. Such Base Salary and other compensation shall be payable in
      accordance with the Employers' normal payroll practices as in effect from time
      to time. 

     

    (b)  The
      Executive will be entitled to participate in the Employers’ health and medical
      benefit plans, any pension, profit sharing and retirement plans, and any
      insurance policies or programs from time to time generally offered to all or
      substantially all executive employees who are employed by the Employers. These
      plans, policies and programs are subject to change at the sole discretion of
      the
      Employers.

     

    
      
        
        

      

      
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    (c)  The
      Executive will be entitled to any other fringe benefit from time to time
      generally offered to all or substantially all executive employees who are
      employed by the Employers. 

     

    (d)  The
      Employers will deduct or withhold from all salary and bonus payments, and from
      all other payments made to the Executive pursuant to this Agreement, all amounts
      that may be required to be deducted or withheld under any applicable Social
      Security contribution, income tax withholding or other similar law now in effect
      or that may become effective during the term of this Agreement.

     

    (e)  The
      Employers may develop incentive cash bonus and stock-based award programs in
      the
      future and the Executive will be entitled to participate in these
      performance-based programs consistent with the participation in such programs
      offered to other executive employees who are employed by the Employers. These
      programs are subject to development and change at the sole discretion of the
      Employers. 

     

    (f)  Signing
      Bonus.
      GLB
      agrees to grant to the Executive as a signing bonus (the "Signing Bonus") an
      award of incentive stock options on 10,000 shares of GLB Common Stock pursuant
      to the terms and conditions of GLB’s stock option plans as soon as practicable
      following the Effective Date. The options will become vested and exercisable
      with respect to 2,000 shares on the first anniversary of the date of grant,
      and
      on each anniversary of the date of grant thereafter, the option will become
      vested and exercisable with respect to an additional 2,000 shares.
      Notwithstanding the foregoing, immediate and complete vesting and exercisability
      of any unvested options of the Common Stock shall take place in the event that
      a
      Change in Control as defined in this Agreement occurs within the initial
      two-year Term of the Agreement or the first one-year Renewal Term of the
      Agreement. For purposes of this Section 3(f), the Employers’ failure to renew
      this Agreement at a time when Cause does not exist, will allow the Executive
      to
      terminate his employment at such time and such termination will be a termination
      of employment by the Employers without Cause.

     

    
      
        
        

      

      
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    4.  Expenses.
      The
      Employers shall promptly reimburse the Executive for (a) all reasonable expenses
      paid or incurred by the Executive in connection with the performance of the
      Executive's duties and responsibilities under this Agreement, upon presentation
      of expense vouchers or other appropriate documentation therefore and (b) all
      reasonable professional expenses, such as licenses and dues and professional
      educational expenses paid or incurred by the Executive during the Term.

     

    5.  Termination.

     

    (a)  Termination
      After Change of Control by Employers without Cause or Termination by Executive
      with Good Reason.
      If (A)
      the Employers terminate the Executive's employment under this Agreement for
      any
      reason other than (i) for Cause, (ii) death or (iii) Permanent Disability and
      such termination occurs as of a date that is within one year after the
      occurrence of a Change of Control (such one-year period being referred to as
      a
      "Change in Control Period"), and such termination occurs within the initial
      two-year Term of the Agreement or the first one-year Renewal Term of the
      Agreement or (B) the Executive terminates his employment hereunder for Good
      Reason effective as of a date within a Change in Control Period and such
      termination occurs within the initial two-year Term of the Agreement or the
      first one-year Renewal Term of the Agreement, the Employers shall, provided
      the
      Executive concurrently signs and delivers a general release and waiver in a
      form
      reasonably acceptable to the Employers, pay to the Executive, or his estate,
      promptly after the event giving rise to such payment occurs: (1) the Executive's
      then current Base Salary (as defined in this Agreement) accrued but unpaid
      through the date the termination of the Executive's employment under this
      Agreement is effective, (2) any cash bonuses or stock-based awards required
      to
      be paid to the Executive pursuant to Section 3(e), prorated for the period
      of
      employment, and (3) an amount equal to the Base Salary for the remainder of
      the
      Term or Renewal Term of the Agreement. Additionally, the stock options granted
      as the Signing Bonus pursuant to Section 3(f) shall become fully vested and
      exercisable and the Executive will have a period of two years from the date
      of
      termination in which to exercise the options.

     

    
      
        
        

      

      
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    The
      amounts payable under this Section 5(a) are subject to reduction in accordance
      with the provisions of Section 6(a).

     

    (b)  Absent
      a Change of Control; Termination by Employers without Cause or Termination
      by
      Executive with Good Reason.
      If (A)
      the Employers terminate the Executive's employment under this Agreement for
      any
      reason other than (i) for Cause, (ii) death or (iii) Permanent Disability,
      and
      such termination occurs as of a date that is not within a Change in Control
      Period and such termination occurs within the initial two-year Term of the
      Agreement or the first one-year Renewal Term of the Agreement, or (B) the
      Executive terminates his employment hereunder for Good Reason, and such
      termination occurs as of a date that is not within a Change in Control Period
      and such termination occurs within the initial two-year Term of the Agreement
      or
      the first one-year Renewal Term of the Agreement, the Employers shall, provided
      the Executive concurrently signs and delivers a general release and waiver
      in a
      form reasonably acceptable to the Employers, pay to the Executive, or his
      estate, promptly after the event giving rise to such payment occurs: (1) the
      Executive's then current Base Salary (as defined in this Agreement) accrued
      but
      unpaid through the date the termination of the Executive's employment under
      this
      Agreement is effective, (2) any cash bonuses or stock-based awards required
      to
      be paid to the Executive pursuant to Section 3(e), prorated for the period
      of
      employment, and (3) as a severance payment, continue to pay the then current
      Base Salary for the remainder of the Term or Renewal Term of the Agreement.
      Additionally, the stock options granted as the Signing Bonus pursuant to Section
      3(f) shall become fully vested and exercisable and the Executive will have
      a
      period of two years from the date of termination in which to exercise the
      options.

     

    
      
        
        

      

      
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    (c)  Termination
      By Employers with Cause; Termination by Executive without Good Reason or
      Termination on Account of Death or Disability.
      If (A)
      the Employers terminate the Executive's employment hereunder for Cause, (B)
      the
      Executive terminates his employment hereunder for any reason other than Good
      Reason, or (C) this Agreement is terminated as a result of the death or
      Permanent Disability of the Executive, the sole obligation of the Employers
      shall be to pay to the Executive, or his estate, an amount equal to the sum
      of
      (1) the Executive's Base Salary accrued but unpaid through the date the
      termination of the Executive's employment under this Agreement is effective,
      and
      (2) any cash bonuses or stock-based awards required to be paid to the Executive
      pursuant to Section 3(e), prorated for the period of employment. The Executive
      shall have a period of two years from the date of termination (but not later
      than the date such options would otherwise expire had the Executive continued
      to
      be employed) in which to exercise any vested but unexercised options granted
      as
      part of the Signing Bonus under section 3(f).

     

    (d)  Any
      notice of termination of the employment of the Executive under this Agreement
      by
      the Employers to the Executive or by the Executive to the Employers shall be
      given in accordance with the provisions of Section 17. The date of termination
      of employment will be the date specified in the notice or, in the event of
      death
      of the Executive, the date of death. 

     

    6.  Tax
      Provisions.

     

    (a)  280G.
      Notwithstanding anything in this Agreement or any other agreement to the
      contrary, in the event it is determined that part or all of the consideration,
      compensation or benefits to be paid to the Executive by the Employers or any
      affiliate (as defined under the Securities Act of 1933, as amended, and the
      regulations thereunder) or any other person to or for the benefit of the
      Executive, whether paid or payable pursuant to the terms of this Agreement,
      or
      pursuant to any other agreement or arrangement with the Employers or any such
      affiliate, constitute “parachute payments” under Section 280G(b)(2) of the
      Internal Revenue Code of 1986, as amended, (the “Code”) then, if the aggregate
      present value of such parachute payments, singularly or together with the
      aggregate present value of any consideration, compensation or benefits to be
      paid to the Executive under any other plan, arrangement or agreement which
      constitute “parachute payments” (collectively, the “Parachute Amount”) exceeds
      2.99 times the Executive’s “base amount,” as defined in Section 280G(b)(3) of
      the Code (the “Executive Base Amount”), the amounts constituting “parachute
      payments” which would otherwise be payable to or for the benefit of the
      Executive shall be reduced to the extent necessary so that the Parachute Amount
      is equal to 2.99 times the Executive Base Amount. If the determination made
      pursuant to the preceding sentence results in a reduction of the payments that
      would otherwise be paid to the Executive, then the Executive may then elect,
      in
      the Executive’s sole discretion, which and how much of any particular
      entitlement shall be eliminated or reduced and shall advise the Employers in
      writing of the Executive’s election within ten days of the determination of the
      reduction in payments. If no such election is made by the Executive within
      such
      ten-day period, the Employers may elect which and how much of any entitlement
      shall be eliminated or reduced and shall notify the Executive promptly of such
      election. The calculations under this Section will be made by the Employers’
independent accounting firm, engaged immediately prior to the event
      that triggered the payment, in consultation with the Employers’ outside legal
      counsel. For purposes of making the calculations required by this Section,
      the
      accounting firm may make reasonable assumptions and approximations concerning
      applicable taxes and may rely on reasonable, good faith interpretations
      concerning the application of Sections 280G and 4999 of the Code, provided
      that
      the accounting firm’s determinations must be made with substantial authority
      (within the meaning of Section 6662 of the Code). 

     

    
      
        
        

      

      
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    (b)  409A.This
      Agreement is intended to comply with Section 409A of the Code, where applicable,
      and will be interpreted and applied in a manner consistent with that intention.
      Toward that end, unless permitted sooner by Section 409A of the Code, if the
      Executive is designated as a “Specified Employee” as of the date of his
“Separation from Service,” the payment of amounts that are treated as deferred
      compensation for purposes of Section 409A of the Code and are payable solely
      on
      account of the Executive’s Separation from Service that would otherwise be paid
      during the six-month period following the Executive’s Separation from Service
      will be deferred until and become payable on the first day of the seventh month
      following such Separation from Service. For purposes hereof, the terms
“Specified Employee” and “Separation from Service” will have the same meanings
      as such terms under Section 409A of the Code and the regulations thereunder.
      If
      other payments of money or other benefits due to the Executive under this
      Agreement or otherwise would cause the application of an accelerated or
      additional tax under Section 409A of the Code, the payments or other benefits
      will be deferred if deferral will make such payment or other benefits compliant
      under Section 409A of the Code, or otherwise such payment or other benefits
      will
      be restructured, to the extent possible, in a manner that does not cause such
      an
      accelerated or additional tax or result in a material additional cost to the
      Company. 

     

    If,
      after
      the application of the preceding paragraph, in the event that it is determined
      that any payment, coverage or benefit due or owing to the Executive pursuant
      to
      this Agreement is subject to the excise tax imposed by Section 409A of the
      Code
      or any successor provision thereof or any interest or penalties, including
      interest imposed under Section 409A(1)(B)(i)(I) of the Code, incurred by the
      Executive as a result of the application of such provision, the Employers,
      within 30 days thereafter, shall pay to the Executive, in addition to any other
      payment, coverage or benefit due and owing under this Agreement, an amount
      (the
“409A Payment”) that will result in the Executive's net after tax position,
      after taking into account any interest, penalties or taxes imposed on the
      amounts paid under this Section 6(b), being no less advantageous to the
      Executive than the net after tax position to the Executive that would have
      been
      obtained had Section 409A of the Code not been applicable to such payment,
      coverage or benefits. The amount of the 409A Payment will be calculated by
      the
      Employer’s independent accounting firm, in consultation with the Employer’s
      outside legal counsel. For purposes of making the calculations required by
      this
      Section, the accounting firm may make reasonable assumptions and approximations
      concerning applicable taxes and may rely on reasonable, good faith
      interpretations concerning the application of Section 409A of the Code, provided
      that the accounting firm’s determinations must be made with substantial
      authority (within the meaning of Section 6662 of the Code). If the precise
      amount of the 409A Payment cannot be determined on the date it is to be paid,
      an
      amount equal to the best estimate of the 409A Payment will be made on that
      date
      and, within 10 days after the precise calculation is obtained, either the
      Employers will pay any additional amount to the Executive or the Executive
      will
      pay any excess amount to the Employers, as the case may be. If subsequently
      the
      IRS claims that any additional amounts are owing, an additional 409A Payment
      will be paid to the Executive within 30 days of the Executive providing
      substantiation of the claim made by the IRS. After payment to the Executive
      of
      the 409A Payment, the Executive will provide to the Employers any information
      reasonably requested by the Employers relating to the tax and penalties, the
      Executive will take those actions as the Employers reasonably requests to
      contest the tax and penalties, cooperate in good faith with the Employers to
      effectively contest the tax and penalties and permit the Employers to
      participate in any proceedings contesting the tax and penalties. The Employers
      will bear and pay directly all costs and expenses (including any interest or
      additional penalties), and indemnify and hold the Executive harmless, on an
      after-tax basis, from all such costs and expenses related to such contest.
      Should it ultimately be determined that any amount of the tax or penalties
      are
      not properly owed, the Executive will refund to the Employers the related amount
      of the 409A Payment.

     

    
      
        
        

      

      
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    7.  Indemnification.
      Notwithstanding anything in the Employers' certificates of incorporation or
      by-laws to the contrary, the Executive shall at all times during his employment
      by the Employers, and thereafter, be indemnified by the Employers to the fullest
      extent permitted by applicable law for any matter in any way relating to the
      Executive's affiliation with the Employers and its subsidiaries; provided,
      however, that if the Executive's employment shall have been terminated by the
      Employers for Cause, then, to the extent required by applicable law, the
      Employers shall have no obligation whatsoever to indemnify the Executive for
      any
      claim arising out of the matter for which his employment shall have been
      terminated for Cause or for any conduct of the Executive not within the scope
      of
      the Executive's duties under this Agreement. 

     

    8.  The
      Employers agree to reimburse the Executive for the reasonable fees and expenses
      of the Executive's attorneys and for court and related costs in any proceeding
      to enforce the provisions of this Agreement in which the Executive is successful
      on the merits. 

     

    9.  Confidential
      Information.
      The
      Executive acknowledges that, in the course of his employment by the Employers,
      he will have access to confidential or proprietary information and trade secrets
      relating to the business of the Employers and that the Employers desire to
      protect including, but not limited to (i) trade secrets, business plans,
      software programs, operating plans, marketing plans, financial reports,
      operating data, budgets, wage and salary rates, terms of agreements with
      suppliers or customers, customer lists, reports, correspondence, tapes, disks,
      tangible property and specification owned by or used in the Employers’
businesses, (ii) operating strengths and weaknesses of the Employers’ officers,
      directors, employees, agents, suppliers and customers and/or (iii) information
      pertaining to future development such as, but not limited to, future marketing
      plans or ideas and plans or ideas for new services or products, information
      and
      data relating to the Employers’ strategic plans and acquisition strategies; (iv)
      all information which is learned by the Executive in the course and performance
      of his duties under this Agreement and (v) other tangible and intangible
      property which is used in the business operations of the Employers but not
      made
      publicly available (the “Confidential Information”). 

     

    
      
        
        

      

      
        -
          13
          -

        
          

        

      

      
        
        

      

    

     

    10.  Treatment
      of Confidential Information; Confidentiality Agreements.
      The
      Executive will not, directly or indirectly, disclose, use or make known for
      the
      Executive’s or another’s benefit any Confidential Information, as defined above,
      of the Employers or use such Confidential Information in any way except in
      the
      best interests of the Employers in the performance of the Executive’s duties for
      the Employers. The Executive will take all necessary steps to safeguard the
      Employers’ Confidential Information. In addition, to the extent that the
      Employers have entered into a confidentiality agreement with any other person
      or
      entity, the Executive agrees to comply with the terms of such confidentiality
      agreement and to be subject to the restrictions and limitations imposed by
      such
      confidentiality agreements as if the Executive was a party thereto.

     

    11.  Non-competition. During
      the term of this Agreement and during any period for which Executive is entitled
      to receive compensation after the termination of this Agreement or pursuant
      to
      any other agreement (but, in any case, for a period of not less than six (6)
      months after the termination of this Agreement), Executive shall not engage,
      anywhere within New York State or in any area outside of New York State in
      which
      the Employers conduct business, whether directly or indirectly, as principal,
      owner, officer, director, agent, employee, consultant or partner, in the
      management of a bank holding company, commercial bank, savings bank, credit
      union or any other financial services provider that competes with the Employers
      or their products or programs (“Restricted Activities”), provided that the
      foregoing shall not restrict Executive from engaging in any Restricted
      Activities which the Employers direct Executive to undertake or which the
      Employers otherwise expressly authorizes. The foregoing shall not restrict
      Executive from owning less than five percent (5%) of the outstanding capital
      stock of any company which engages in Restricted Activities, provided that
      Executive is not otherwise involved with such company as an officer, director,
      agent, employee or consultant. The foregoing provisions of this Section 11
      shall
      not be held invalid because of the scope of the territory covered, the actions
      restricted thereby, or the period of time such covenant is operative.

     

    
      
        
        

      

      
        -
          14
          -

        
          

        

      

      
        
        

      

    

     

    12.  Non-solicitation.
      During
      the term of this Agreement and during the period for which Executive is entitled
      to receive compensation after the termination of this Agreement or pursuant
      to
      any other agreement,
      and
      for a
      period of six-months thereafter, Executive shall not, directly or indirectly,
      without the written consent of the Employers: (i) recruit or solicit for
      employment any employee of the Employers or encourage any such employee to
      leave
      their employment with the Employers, or (ii) solicit, induce or influence
      any customer, supplier, lessor or any other person or entity which has a
      business relationship with the Employers to discontinue or reduce the extent
      of
      such relationship with the Employers.

     

    13.  Effect
      of Regulatory Actions.
      Any
      actions by the Employers under this Agreement must comply with the law,
      including regulations and other interpretive action, of the Federal Deposit
      Insurance Act, Federal Deposit Insurance Corporation, or other entities that
      supervise any of the activities of the Employer. Specifically:

     

    (a)  Temporary
      Suspension or Prohibition.
      If the
      Executive is suspended from office or temporarily prohibited from participating
      in the conduct of the affairs of any banking subsidiary of GLB by a notice
      served under Section 8(e)(3) or (g)(1) of the Federal Deposit Insurance Act
      (“FDIA”), 12 U.S.C. § 1818(e)(3) and (g)(1), the Employers’ obligations under
      this Agreement will be suspended as of the date of service, unless stayed by
      appropriate proceedings. If the charges in the notice are dismissed, the
      Employers, in their discretion, may (i) pay the Executive all or part of the
      compensation withheld while its obligations under this Agreement were suspended
      and (ii) reinstate in whole or in part any of its obligations that were
      suspended.

     

    
      
        
        

      

      
        -
          15
          -

        
          

        

      

      
        
        

      

    

     

    (b)  Permanent
      Suspension or Prohibition.
      If the
      Executive is removed from office or permanently prohibited from participating
      in
      the conduct of the affairs of any banking subsidiary of GLB by an order issued
      under Section 8(e)(4) or (g)(1) of the FDIA, 12 U.S.C. § 1818(e)(4) and (g)(1),
      all obligations of the Employers under this Agreement will terminate as of
      the
      effective date of the order, but vested rights of the Parties will not be
      affected.

     

    (c)  Default
      of the Bank.
      If any
      banking subsidiary of GLB is in default (as defined in Section 3(x)(1) of the
      FDIA, 12 U.S.C. § 1813(x)(1)), all obligations under this Agreement will
      terminate as of the date of default, but vested rights of the Parties will
      not
      be affected.

     

    (d)  Termination
      by Regulators.
      All
      obligations under this Agreement will be terminated, except to the extent
      determined by the federal bank regulatory agency of any banking subsidiary
      of
      GLB that continuation of this Agreement is necessary for the continued operation
      of the banking subsidiary, if (1) the governing federal bank regulatory agency
      enters into an agreement to provide assistance to or on behalf of a banking
      subsidiary of GLB under the authority contained in Section 13(c) of the
      FDIA, 12 U.S.C. § 1823(c); or (2) such banking subsidiary of GLB is determined
      by the federal bank regulatory authority to be in an unsafe or unsound
      condition. However, vested rights of the Parties will not be
      affected.

     

    (e)  Vested
      Rights.
      For
      purposes of this Section 13, to determine the “vested rights of the Parties,” a
      right shall be deemed vested if, but for this Agreement, such right would be
      vested for purposes of any applicable agreement or applicable law and this
      Agreement shall not expand or contract such right.

     

    
      
        
        

      

      
        -
          16
          -

        
          

        

      

      
        
        

      

    

     

    14.  Representation
      and Warranty of the Executive.
      The
      Executive represents and warrants that he is not under any obligation,
      contractual or otherwise, to any other firm or corporation, that would prevent
      his entry into the employ of the Employers or his performance of the terms
      of
      this Agreement. 

     

    15.  Entire
      Agreement; Amendment.
      This
      Agreement contain the entire agreement between the Employers and the Executive
      with respect to the subject matter hereof, and may not be amended, waived,
      changed, modified or discharged except by an instrument in writing executed
      by
      the Employers and the Executive. This Agreement supersedes any previous
      agreements between the Employers and the Executive with respect to the subject
      matter hereof. 

     

    16.  Assignability.
      The
      services of the Executive under this Agreement are personal in nature, and
      neither this Agreement nor the rights or obligations of the Employers under
      this
      Agreement may be assigned by the Employers, whether by operation of law or
      otherwise, without the Executive's prior written consent. This Agreement shall
      be binding upon, and inure to the benefit of, the Employers and their permitted
      successors and assigns under this Agreement. This Agreement shall not be
      assignable by the Executive, but shall inure to the benefit of the Executive's
      heirs, executors, administrators and legal representatives. 

     

    17.  Notice.
      Any
      notice that may be given under this Agreement shall be in writing and be deemed
      given when hand delivered and acknowledged or, if mailed, one day after mailing
      by registered or certified mail, return receipt requested, or if delivered
      by an
      overnight delivery service, one day after the notice is delivered to such
      service, to either the Employers or the Executive at their respective addresses
      stated above, or at such other address as the Executive or the Employers may
      by
      similar notice designate. 

     

    
      
        
        

      

      
        -
          17
          -

        
          

        

      

      
        
        

      

    

     

    18.  Specific
      Performance.
      The
      Employers and the Executive agree that irreparable damage would occur in the
      event that any of the provisions of Sections 9-13 were not performed in
      accordance with their specific terms or were otherwise breached. The Executive
      accordingly agrees that the Employers shall be entitled to an injunction or
      injunctions to prevent breaches of Sections 9-12 and to enforce specifically
      the
      terms and provisions of Sections 9-12 in addition to any other remedy to which
      the Employers are entitled at law or in equity. 

     

    19.  No
      Third Party Beneficiaries.
      Nothing
      in this Agreement, express or implied, is intended to confer upon any person
      or
      entity other than the Parties (and the Executive's heirs, executors,
      administrators and legal representatives and the permitted transferees of the
      Shares) any rights or remedies of any nature under or by reason of this
      Agreement. 

     

    20.  Successor
      Liability.
      The
      Employers shall require any successor, whether direct or indirect, by purchase,
      merger, consolidation or otherwise, to all or substantially all of the business
      or assets of the Employers to assume expressly and agree to perform this
      Agreement in the same manner and to the same extent that the Employers would
      be
      required to perform it if no such succession had taken place. 

     

    21.  Mitigation.
      The
      Executive shall not be required to mitigate the amount of any payment provided
      for in this Agreement by seeking other employment or otherwise, nor shall the
      amount of any payment or benefit provided for in this Agreement be reduced
      by
      any compensation earned by the Executive as the result of employment by another
      employer or by retirement benefits payable after the termination of this
      Agreement, except that the Employers shall not be required to provide the
      Executive and his eligible dependents with medical insurance coverage as long
      as
      the Executive and his eligible dependents are receiving comparable medical
      insurance coverage from another employer. 

     

    
      
        
        

      

      
        -
          18
          -

        
          

        

      

      
        
        

      

    

     

    22.  Waiver
      of Breach.
      The
      failure at any time to enforce or exercise any right under any of the provisions
      of this Agreement or to require at any time performance by the other Parties
      of
      any of the provisions hereof shall in no way be construed to be a waiver of
      such
      provisions or to affect either the validity of this Agreement or any part
      hereof, or the right of any party hereafter to enforce or exercise its rights
      under each and every provision in accordance with the terms of this Agreement.
      

     

    23.  No
      Attachment.
      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 effect any such action shall be null, void and of no effect;
      provided, however, that nothing in this Section 16 shall preclude the assumption
      of such rights by executors, administrators or other legal representatives
      of
      the Executive or his estate and their assigning any rights under this Agreement
      to the person or persons entitled hereto. 

     

    24.  Severability.
      The
      invalidity or unenforceability of any term, phrase, clause, paragraph,
      restriction, covenant, agreement or other provision of this Agreement shall
      in
      no way affect the validity or enforceability of any other provision, or any
      part
      thereof, but this Agreement shall be construed as if such invalid or
      unenforceable term, phrase, clause, paragraph, restriction, covenant, agreement
      or other provision had never been contained in this Agreement unless the
      deletion of such term, phrase, clause, paragraph, restriction, covenant,
      agreement or other provision would result in such a material change as to cause
      the covenants and agreements contained in this Agreement to be unreasonable
      or
      would materially and adversely frustrate the objectives of the Employers and
      the
      Executive as expressed in this Agreement. 

     

    
      
        
        

      

      
        -
          19
          -

        
          

        

      

      
        
        

      

    

     

    25.  Survival
      of Benefits.
      Any
      provision of this Agreement that provides a benefit to the Executive and that
      by
      the express terms hereof does not terminate upon the expiration of the Term
      shall survive the expiration of the Term and shall remain binding upon the
      Employers until such time as such benefits are paid in full to the Executive
      or
      his estate. 

     

    26.  Construction.
      This
      Agreement shall be governed by and construed in accordance with the internal
      laws of the State of New York, without giving effect to principles of conflict
      of laws. All headings in this Agreement have been inserted solely for
      convenience of reference only, are not to be considered a part of this Agreement
      and shall not affect the interpretation of any of the provisions of this
      Agreement. 

     

    [Remainder
      of Page Intentionally Left Blank. Signature Page Follows.]

     

    
      
        
        

      

      
        -
          20
          -

        
          

        

      

      
        
        

      

    

     

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

    
       

      
        	 	 	 
	 	GREAT
                LAKES
                BANCORP, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
                

                Andrew
                  W. Dorn, Jr., President 

                and
                  Chief Executive Officer 

              

      

      
         

      

    

    
      
        
          	 	 	 
	 	GREATER
                  BUFFALO
                  SAVINGS BANK
	 
 	 
 	 
 
	 	By:  	 
	 	
                  

                  
                    Andrew
                      W. Dorn, Jr., President 

                    and
                      Chief Executive Officer

                  

                

        

        
          
            
               

              
                	 	 	 
	 	
                        
Peter
                        B. Babiarz
                        March
                          12, 2007

                      

              

              

              
                
                  
                  

                

                
                  -
                    21
                    -GREAT
      LAKES BANCORP, INC.

     

    RESTATED
      2000 STOCK OPTION PLAN 

     

     

    Under
      an
      Agreement and Plan of Reorganization dated as of February 10, 2003 (the “Plan of
      Reorganization”), between Greater Buffalo Savings Bank (the “Bank”) and Great
      Lakes Bancorp, Inc. (the “Corporation”), it was agreed that the Corporation
      would become a holding corporation for the Bank and the sole holder of all
      issued and outstanding shares of its common stock, and that each whole or
      fractional share of Bank common stock issued and outstanding immediately prior
      to the reorganization would automatically be converted into the same number
      and
      class of shares of the common stock of the Corporation.

     

    Section
      5
      of the Plan of Reorganization provided that, at the effective date defined
      in
      the Plan of Reorganization (the “Effective Time”), the Greater Buffalo Savings
      Bank 2000 Stock Option Plan (the “2000 GBSB Plan”) would be transferred to and
      would be continued as a stock option plan of the Corporation

     

    The
      2000
      GBSB Plan was approved by the shareholders of the Bank on February 22, 2000.
      Pursuant to regulations applicable to the Bank, the Superintendent of Banks
      of
      the New York State Banking Department (the “Superintendent”) also approved the
      2000 GBSB Plan. The shareholders of the Bank and the Superintendent approved
      the
      Plan of Reorganization on April 29, 2003 and April 17, 2003, respectively,
      providing for the transfer of the 2000 GBSB Plan to the Corporation. As of
      the
      Effective Time, the Board of Directors of the Corporation approved the amendment
      of the 2002 GBSB Plan to reflect its transfer and continuation and directed
      the
      appropriate officers to amend the plan accordingly. 

     

    Therefore,
      the Corporation hereby amends and restates the former 2000 GBSB Plan to reflect
      its transfer and continuation as the Great Lakes Bancorp, Inc. Restated 2000
      Stock Option Plan (the “Plan”). 

     

    1. Purposes
      of Plan.
      The
      purposes of this Plan are to provide for stock options (“Options”) as incentives
      for key employees, titled assistants, officers and/or directors of the
      Corporation and its Subsidiary Corporations, as hereinafter defined and in
      certain instances to compensate founding directors for their efforts in founding
      the Bank or directors for attending meetings of the Corporation’s Board of
      Directors or committees of the Corporation’s Board of Directors, through
      acquisition or increased ownership of the Corporation’s common stock, par value
      $5.00 per share (“Common Stock”), and where appropriate to encourage such
      individuals to put forth maximum efforts for the success of the Corporation’s
      business. It is intended that Options granted to employees under the Plan will
      constitute “incentive stock options” within the meaning of Section 422 of the
      Internal Revenue Code of 1986, as amended (the “Code”). It is also intended that
      Options granted to non-employee officers and directors pursuant to this Plan
      shall be non-qualified options for purposes of the Code. 

    

    2. Definitions.
      As used
      in the Plan, the following words and phrases shall have the meanings
      indicated:

    

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    (a) Board
      of Directors
      shall
      mean the Board of Directors of the Corporation.

    

    (b) Disability
      shall
      mean a mental or physical condition which in the opinion of a majority of the
      Option Committee renders an individual unable or incompetent to properly carry
      out the responsibilities attendant to the individual’s employment. The decision
      of the Option Committee shall be conclusive and binding on all
      parties.

    

    (c) Disinterested
      Director
      shall
      mean a director of the Corporation who is not an employee or officer of the
      Corporation and under consideration for a grant of Options at the time the
      Option Committee acts with respect to such grants.

    

    (d) Fair
      Market Value
      per
      share as of a particular date shall mean (i) if the shares of Common Stock
      are
      then traded in the over-the-counter market, the average of the closing bid
      and
      asked prices for the shares of Common Stock in the over-the-counter market
      on
      the latest date prior to such date for which such prices are available; or
      (ii)
      if the shares of Common Stock are then listed on an established national
      securities exchange, the average of the opening and closing prices on such
      exchange on the latest date prior to such date for which such prices are
      available, or (iii) if the shares of Common Stock are not then traded in the
      over-the-counter market or listed on an established national securities
      exchange, such value as the Committee shall determine based on a reasonable
      method selected by the Committee in its discretion, such method to include
      such
      factors as (a) the market value of shares of comparable banks and (b) the trend
      of the bank’s earnings. The Fair Market Value of stock is to be determined
      without regard to any restriction, other than a restriction which, by its terms,
      will never lapse.

    

    (e) Option
      Committee
      shall
      mean the committee responsible for administering the Plan as described in
      Section 3 hereof.

    

    (f) Optionee
      shall
      mean an employee, officer or director of the Corporation or a Subsidiary
      Corporation to whom an Option has been granted under the Plan.

    

    (g) Retirement
      shall
      mean either (i) the termination, retirement or resignation of an Optionee at
      a
      time when said Optionee is eligible for immediate commencement of pension
      benefits under the provisions of any retirement plan for employees of the Bank
      or the Corporation or any Subsidiary Corporation as then in effect, or (ii)
      any
      other voluntary or involuntary termination of employment by an Optionee which
      the Board of Directors designates as a retirement for the purposes of this
      Plan.

    

    (h) Subsidiary
      Corporation
      shall
      mean any corporation (other than the Corporation) in an unbroken chain of
      corporations beginning with the Corporation if, at the time of granting an
      Option, each of the corporations other than the last corporation in the unbroken
      chain owns stock possessing fifty percent (50%) or more of the total combined
      voting power of all classes of stock in one of the other corporations in such
      chain.

    

    3. Administration.
      The Plan
      shall be administered by the Option Committee, which shall have the authority
      to
      administer the Plan and to exercise all the powers and authority either
      specifically granted to it under the Plan or necessary or advisable in the
      administration of the Plan, including, without limitation, the authority to
      grant Options; to determine the Option purchase price of the shares of Common
      Stock subject to an Option; to determine the individuals to whom, and the times
      at which, Options shall be granted; to determine the number of shares to be
      covered by each Option and the terms and conditions of each Option; to interpret
      the Plan; to prescribe, amend and rescind rules and regulations relating to
      the
      Plan; to determine the terms and provisions of the Option Agreements provided
      for in Section 6(i) hereof to be entered into in connection with Options granted
      under the Plan; and to make all other determinations deemed necessary or
      advisable for the administration of the Plan. All determinations and
      interpretations made by the Option Committee shall be final, conclusive and
      binding on all persons, including Optionees and their legal representatives,
      successors in interest and beneficiaries. The Option Committee may delegate
      to
      one or more of its members or to one or more agents administrative or record
      keeping duties as it may deem advisable. 

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    

    The
      Option Committee shall consist of those directors elected from time to time
      by
      the Board of Directors, except that only a Disinterested Director shall be
      permitted to serve on the Option Committee. The Board of Directors shall
      designate one of the members of the Option Committee as its chairman, and the
      Option Committee may appoint a secretary (who need not be a member of the Option
      Committee). The Option Committee shall hold its meetings at such times and
      places as it may determine. A majority of its members, present in person or
      all
      of its members by conference telephone, shall constitute a quorum. All
      determinations of the Option Committee at a meeting thereof in person or by
      conference telephone call shall be made by a majority of its members
      participating in such a meeting. The Option Committee may make any decision
      or
      determination by the unanimous written consent of all its members. The Board
      of
      Directors shall fill any vacancy in the Option Committee. No member of the
      Option Committee shall be liable for any act or omission with respect to his
      service on the Option Committee, if he acts in good faith and in a manner he
      reasonably believes to be in or not opposed to the best interests of the
      Corporation. Where a member of the Corporation’s Board of Directors serves on
      the Corporation’s Option Committee, service on the Option Committee shall
      constitute service as a director of the Corporation for all
      purposes.

    

    4. Persons
      Eligible to Receive Options.
      Options
      under the Plan may be granted in the discretion of the Option Committee to
      key
      employees, titled assistants, officers, founding directors and/or directors
      of
      the Corporation or any Subsidiary Corporation. Options may be granted to such
      eligible individuals whether or not they hold or have held Options previously
      granted under the Plan or otherwise granted by the Corporation or a Subsidiary
      Corporation, subject to any restrictions set forth in the Plan. In selecting
      individuals to whom Options shall be granted, the Option Committee shall take
      into consideration any factors it may deem relevant, including the duties of
      the
      respective individuals and such individuals’ past, present and potential
      contributions to the success of the Corporation and its Subsidiary
      Corporations.

    

    Notwithstanding
      anything to the contrary contained herein, the Corporation shall, on or before
      January 30 of each year during the term of this Plan, award options for one
      thousand (1000) shares of Common Stock to each director of the Corporation,
      who
      is not a full time employee of the Corporation or any Subsidiary Corporation,
      for all meetings of the Board of Directors of the Corporation or any committee
      thereof which such director attended during the preceding fiscal year of the
      Corporation, in lieu of paying any cash consideration to the directors for
      their
      service as such or for attending such meetings. The foregoing sentence shall
      be
      inoperative if, on or before the first day of any fiscal year or the effective
      date of the Plan, the Board of Directors adopts a resolution providing for
      the
      payment of cash consideration to the directors for their service as such and
      for
      attending meetings of the Board of Directors and the committees thereof during
      the ensuing fiscal year or the remainder of the fiscal year during which the
      Plan first became effective.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    

    5. Stock
      Available for Options.
      The
      number of shares of voting Common Stock available for Options granted under
      the
      Plan shall be 195,714. Such amount may be adjusted pursuant to Section 6(f)
      hereof. Shares of Common Stock used for purposes of the Plan shall be authorized
      and unissued shares, or issued shares designated on the Corporation’s balance
      sheet as “treasury shares.” Shares of Common Stock subject to Options which have
      terminated or expired prior to exercise shall be available for subsequent grants
      of Options under the Plan.

    

    6. Terms
      and Conditions of Options.
      The
      Option Committee shall prescribe the terms and conditions of the Options granted
      to each individual, which terms and conditions need not be the same in each
      case, subject to the following:

    

    (a) Option
      Price.
      The
      price at which each share of Common Stock subject to an Option may be purchased
      (the “Option Price”) shall be determined by the Option Committee. The Option
      Price shall be not less than the greater of $10 or one hundred percent (100%)
      of
      the Fair Market Value of the shares of Common Stock on the date of grant of
      the
      Option. The Option Price shall be subject to adjustment as provided in Section
      6(f) hereof.

    

    (b) Option
      Period.
      The
      period during which an Option may be exercised shall be determined by the Option
      Committee subject to the vesting schedule referred to below, and shall in no
      event be more than ten (10) years from the date of grant of such Option. The
      exercise period shall be subject to earlier termination as provided in Section
      9
      hereof. The date of grant of an Option shall be the date specified by the Option
      Committee in its resolution granting the Option (which date may not be earlier
      than the date of the resolution). Provided that an Optionee shall otherwise
      be
      entitled to exercise an Option in accordance with terms of this Plan, the right
      of an Optionee to exercise an Option granted under the Plan will vest as
      follows:

    
      	 	 	 	 
	
               

            	 	
              Percent
                of

            	 
	
              Date

            	 	
               Options
                Which Become Exercisable

              
                (i.e.
                  Vested

              

            	 
	
               

            	 	
               

            	 
	 	 	 	 
	
              1
                Year After

            	 	 	 
	
              Date
                of Grant

            	 	 	
              20

            	
              %

            
	 	 	 	 	 
	
              2
                Years After

            	 	 	 	 
	
              Date
                of Grant

            	 	 	
              20

            	
              %

            
	 	 	 	 	 
	
              3
                Years After

            	 	 	 	 
	
              Date
                of Grant

            	 	 	
              20

            	
              %

            
	 	 	 	 	 
	
              4
                Years After

            	 	 	 	 
	
              Date
                of Grant

            	 	 	
              20

            	
              %

            
	 	 	 	 	 
	
              5
                Years After

            	 	 	 	 
	
              Date
                of Grant

            	 	 	
              20

            	
              %

            
	 	 	 	
              100

            	
              %

            

    

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    Notwithstanding
      any other provision contained herein to the contrary, Options awarded to
      individuals who served as founding directors of the Bank for services rendered
      and risk incurred in incorporating the Bank shall vest immediately upon receipt.
      Additionally, Options awarded to any directors of the Corporation in lieu of
      compensation for attending meetings of the Company’s Board of Directors or
      committees of the Corporation’s Board of Directors shall vest immediately upon
      receipt.

    

    In
      the
      event of the death, Retirement or Disability of an Optionee while employed
      by
      the Corporation or a Subsidiary Corporation, or the termination of the
      Optionee’s employment with the Corporation or a Subsidiary Corporation without
      cause, as defined below, or the resignation, removal, or failure of an Optionee
      who is a director of the Corporation to be re-elected to the Board of Directors
      of the Corporation, all unexpired Options held by such Optionee shall be deemed
      100% vested as of the date of such death, Retirement or Disability or
      termination of employment or expiration of service as a director of the
      Corporation. For purposes of this Section 6(b) the term “cause” shall mean any
      of the following: (i) the Optionee’s conviction of any felony offense involving
      monies or other property, or any crime of moral turpitude, or his commission
      of
      fraud or embezzlement; (ii) the Optionee’s breach of any of his fiduciary duties
      to the Corporation or any Subsidiary Corporation which breach materially
      adversely affects the business of the Corporation or Subsidiary Corporation;
      (iii) the Optionee’s willful and continual neglect or failure, after written
      demand, to discharge his duties or failure to obey a specific written direction
      from the Board of Directors of the Corporation or Chief Executive Officer of
      the
      Corporation or any Subsidiary Corporation; or (iv) the Optionee’s violation of
      any non-competition or confidentiality agreement with the Corporation or
      Subsidiary Corporation.

    

    (c) Exercise
      of Options and Payment.
      An
      Optionee, or his transferee pursuant to Section 6(e) hereof, may exercise an
      Option as to any or all shares of Common Stock as to which the Option has become
      exercisable; provided, however, an Option may not be exercised for fewer than
      one hundred (100) shares of Common Stock, or the number of shares of Common
      Stock remaining as to which such Option is then exercisable whichever is
      smaller. The Option shall be exercised by delivering to the Corporation written
      notice of such exercise setting forth the number of shares of Common Stock
      to be
      purchased and the name in which such shares shall be registered, together with
      a
      certified check, bank draft or money order, in the full amount of the purchase
      price therefor, in each case payable to the order of the Corporation in United
      States dollars; provided, however, that such purchase price may in the
      alternative, to the extent permitted by law, be paid by assigning and delivering
      to the Corporation shares of Common Stock having in the aggregate on the date
      of
      exercise a Fair Market Value equal to such purchase price; and provided further
      that at the election of the Option Committee, to the extent permitted by law,
      such purchase price may consist of other property, tangible or intangible,
      or
      labor or services actually received by or performed for the Corporation or
      for
      its benefit, or a combination thereof. In the absence of fraud in the
      transaction, the judgment of the Board of Directors as to the value of the
      consideration received upon the exercise of an Option shall be
      conclusive.

    

    If
      the
      Optionee so requests, shares of Common Stock purchased upon exercise of an
      Option may be issued in the name of the Optionee or another person provided
      that
      any such shares will be subject to the restrictions contained in Section 6(j)
      hereof.

    

    The
      shares of Common Stock issued to an Optionee upon the exercise of an Option
      may
      be restricted from further transfer for any period which may be required under
      applicable securities laws, in which case the stock certificates therefor shall
      contain a reference to such restriction.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    (d) No
      Right to Continued Employment.
      Nothing
      in this Plan or in any Option granted pursuant to the Plan shall confer or
      be
      deemed to confer on any individual any right to continue in the employ of the
      Corporation or any Subsidiary Corporation or be deemed to restrict in any way
      the right of the Corporation or a Subsidiary Corporation to terminate his
      employment at any time.

    

    (e) Nontransferability
      of Options.
      During
      the lifetime of an Optionee, Options held by such Optionee shall be exercisable
      only by such Optionee or, in the event of an Optionee’s disability, by his
      guardian or legal representative. No Option shall be assignable or transferable
      by an Optionee other than by will or applicable laws of descent and
      distribution.

    

    (f) Adjustments
      for Change in Stock Subject to Plan and Other Events.

    

    (1) In
      the
      event of a reorganization, recapitalization, stock split, stock dividend,
      combination of shares, merger, consolidation, rights offering, or any other
      change in the corporate structure or shares of Common Stock of the Corporation,
      the number of shares of Common Stock available for Options, the number of such
      shares covered by outstanding Options, and/or the Option Price per share shall
      be proportionately adjusted by the Board of Directors, to reflect any increase
      or decrease in the number of issued and outstanding shares of Common Stock;
      provided, however, that any fractional shares resulting from such adjustment
      shall be eliminated by rounding down to the nearest whole number of shares.
      The
      Board of Director’s determinations of adjustments shall be final, binding and
      conclusive.

    

    (2) In
      connection with (i) any sale or transfer by the Corporation of all or
      substantially all its assets, or (ii) any acquisition, directly or indirectly
      (including by way of tender or exchange offer, merger or consolidation), of
      all
      or a majority of the then outstanding voting securities of the Corporation
      by
      any person or any group (within the meaning of Section 13(d)(1) of the
      Securities Exchange Act of 1934), other than the Corporation or a Subsidiary
      Corporation, all outstanding Options under the Plan shall become fully vested
      and exercisable in full, on and after (i) 15 days prior to the effective date
      of
      such sale, transfer or acquisition or (ii) the date of commencement of such
      tender or exchange offer, as the case may be. Notwithstanding the foregoing,
      in
      no event shall any Option be exercisable at or after the date of termination
      otherwise applicable to the exercise period of such Option.

    

    (3) In
      the
      event of the proposed dissolution or liquidation of the Corporation, or any
      consolidation or merger in which the Corporation is the surviving corporation
      and in which there is a reclassification or change of the shares of Common
      Stock
      (other than a change in par value), all outstanding Options under the Plan
      shall
      become fully vested upon the Corporation’s adoption of the plan or agreement
      related to such event. The Option Committee may provide that the holder of
      each
      Option then exercisable shall have the right to exercise such Option (at its
      then Option Price) solely for the kind and amount of shares of stock and other
      securities, property, cash or any combination thereof that such Optionee would
      receive upon such dissolution, liquidation, or corporate consolidation or merger
      if the Optionee were already the holder of the number of shares of Common Stock
      for which such Option is exercisable; or the Option Committee may provide in
      the
      alternative, that each Option granted under the Plan shall terminate as of
      a
      date to be fixed by the Board of Directors, provided, however, that not less
      than thirty (30) days written notice of the date so fixed shall be given to
      each
      Optionee, who shall have the right, during the period of thirty (30) days
      preceding such termination, to exercise each Option as to all or any part of
      the
      shares of Common Stock subject thereto.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    
      
        (4)
          Paragraphs
          (2) and (3) of this Section 6(f) shall not apply any merger
          or
          consolidation in which the Corporation is the surviving corporation and
          shares
          of Common Stock are not converted into or exchanged for stock, securities
          of any
          other corporation, cash or any other thing of value.

      

    

    

    (g) Registration,
      Listing and Qualification of Shares of Stock.
      Each
      Option shall be subject to the requirement that if at any time the Board of
      Directors or the Option Committee shall determine that the registration, listing
      or qualification of the shares of Common Stock subject thereto, upon any
      securities exchange or under any federal or state law, or the consent or
      approval of any governmental regulatory body, is necessary or desirable as
      a
      condition of, or in connection with, the granting of such Option or the purchase
      of shares of Common Stock thereunder, no such Option may be exercised unless
      and
      until such registration, listing, qualification, consent or approval shall
      have
      been effected or obtained free of any conditions not acceptable to the Option
      Committee or Board of Directors. The Corporation may require that any person
      exercising an Option shall make such representations and agreements and furnish
      such information as the Corporation deems appropriate to assure compliance
      with
      the foregoing or any other applicable legal requirement.

    

    (h) Rights
      as a Stockholder.
      An
      Optionee shall have no rights as a stockholder with respect to any shares
      covered by the Option until the date of the issuance of a stock certificate
      to
      him for such shares. No adjustment shall be made for dividends (ordinary or
      extraordinary, whether in cash, securities or other property) or distributions
      or other rights for which the record date is prior to the date such stock
      certificate is issued, except as provided in Section 6(f) hereof.

    

    (i) Option
      Agreements.
      Each
      Option granted pursuant to the Plan shall be evidenced by a written option
      agreement (“Option Agreement”) between the Corporation and the Optionee, which
      agreement shall, subject to the terms and conditions contained in the Plan,
      state: the number of shares of Common Stock to which the Option relates, the
      Option Price, and that the terms and conditions of this Plan shall be
      incorporated therein by reference. Each Option Agreement shall contain such
      other provisions, including, without limitation, the imposition of restrictions
      upon the exercise of an Option, as the Option Committee shall deem
      advisable.

    

    (j) Sale
      of Shares.
      An
      Optionee may not sell any Common Stock which is acquired pursuant to the
      exercise of an Option hereunder for a period of six (6) months after he acquires
      such Common Stock.

    

    7. Agreement
      by Optionee Regarding Withholding Taxes.
      If the
      Option Committee shall so require, each Optionee shall agree that as a condition
      of exercise of an Option:

    

    (a) no
      later
      than the date of exercise of any Option granted hereunder, the Optionee will
      pay
      to the Corporation or make arrangements satisfactory to the Option Committee
      regarding payment of any Federal, state or local taxes of any kind required
      by
      law to be withheld upon the exercise of such Option, and

    

    (b) the
      Corporation shall have the right to deduct from any payment of any kind
      otherwise due to the Optionee, Federal, state or local taxes of any kind
      required by law to be withheld upon the exercise of such Option or to retain
      a
      sufficient number of shares to equal the amount of tax required to be withheld
      with respect to the exercise of an Option.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    

    8. Term,
      Amendment and Termination of the Plan.
      Options
      may be granted pursuant to the Plan from time to time within a ten-year period
      from the date the Plan is adopted by the Board of Directors; provided, however,
      that the Board of Directors may at any time prior to that date terminate the
      Plan. The Board of Directors may at any time suspend, amend or modify the Plan
      subject to the approval of the Superintendent to be obtained in accordance
      with
      applicable law; provided, that no amendment or modification to the Plan which
      eliminates or adversely affects a right or privilege of an Optionee shall have
      any retroactive effect unless required by law. In addition, the approval of
      the
      holders of a majority of the Corporation’s outstanding Common Stock shall be
      required to any amendment, other than an adjustment made pursuant to Section
      6(f) hereof, which would (i) increase the number of shares of Common Stock
      as to
      which Options may be granted, (ii) change the number of shares of Common Stock
      which may be optioned to any single individual, (iii) decrease an Option Price,
      (iv) extend the term of the Plan or of an Option, or (v) change the persons
      or
      categories of persons eligible to be granted Options. No termination of the
      Plan
      may, without the consent of an Optionee, adversely affect the rights of such
      Optionee under any Option held by such Optionee.

    

    9. Approval
      of Stockholders. This
      Plan
      is subject to approval by the holders of a majority of the outstanding shares
      of
      the capital stock of the Corporation, and no Option granted hereunder shall
      be
      effective or exercisable prior to such approval. If the Plan is not approved
      as
      provided above, the Plan and all Options granted hereunder shall be null and
      void and of no force and effect.

    

    10. Other
      Actions.
      Nothing
      contained in the Plan shall be construed to limit the authority of the
      Corporation to exercise its corporate rights and powers, including but not
      by
      way of limitation, the right of the Corporation to grant options for proper
      corporate purposes other than under the Plan with respect to any director,
      employee or other person, firm, corporation or association.

    

    11. No
      Obligation to Exercise Option.
      The
      granting of an Option shall impose no obligation upon the Optionee to exercise
      such Option.

    

    12.
      Investment
      Purpose.
      Each
      Option under the Plan shall be granted on the condition that the purchase of
      Common Stock thereunder shall be for investment purposes, and not with a view
      to
      resale or distribution. 

     

    13.
      Effective
      Date.
      The
      effective date of the 2000 GBSB Plan February 22, 2000, which is the date final
      approval is given to the GBSB Plan by the Superintendent. The effective date
      of
      the Plan is April 29, 2003, which is the Effective Time of the Plan of
      Reorganization.

     

    14.
      Execution.
      To
      record the amendment and restatement of the Plan by the Board of Directors,
      the
      Corporation has caused its authorized officer to execute it.

     

    

     

    
      	 	
              GREAT
                LAKES BANCORP, INC.

            
	 	 	 
	 	
              By:

            	
              /s/
                Andrew W. Dorn, Jr. 

            
	 	 	
              Andrew
                W. Dorn, Jr.

            
	 	 	
              President
                and Chief Executive Officer

            

    

    
       

       

      
        
           

        

        
          8

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