Document:

EXHIBIT 10.2

  

  

  

  

    AMENDED AND RESTATED

    EMPLOYMENT AGREEMENT

    

    

    This Amended and Restated Employment Agreement (the “Agreement”) is made effective as of January 3, 2022 (the
      “Effective Date”), by and between ESSA Bank & Trust, a Pennsylvania chartered stock savings bank with its principal office in Stroudsburg, Pennsylvania (the “Bank”), ESSA Bancorp, Inc. a Pennsylvania-chartered corporation that owns 100% of the
      common stock of the Bank (the “Company”), and Charles D. Hangen (“Executive”).  Any reference to the “Employer” shall mean both the Company and the Bank.

    WHEREAS, the
      Executive is currently employed as Executive Vice President and Chief Operating Officer of the Employer pursuant to an employment agreement dated as of October 12, 2016 (the “Prior Agreement”); and

    WHEREAS, the
      Employer and the Executive desire to amend and restate the Prior Agreement to make certain changes to the Prior Agreement, as set forth herein.

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

    1. POSITION AND RESPONSIBILITIES.

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

    2. TERM AND DUTIES.

    (a) Three Year Contract.  The term of this Agreement
        shall begin as of the Effective Date and shall continue thereafter for a period of three years (“Employment Period”). This Agreement may be extended further at the discretion of the Board of Directors of the Employer (the “Board”). Notwithstanding
        anything herein to the contrary, in the event that the Company or Bank enters into a definitive agreement (“Change in Control Agreement”) to engage in a transaction that would be considered a Change in Control (as defined herein) or a Change in
        Control otherwise occurs, this Agreement shall automatically renew and shall remain in effect for a period of three (3) years following the effective time of the Change in Control; except in the event that the Change in Control Agreement is
        terminated or the Change in Control does not occur, the term of this Agreement will not so renew.

    (b) Continued Employment Following Termination of Employment
            Period.  Nothing in this Agreement shall mandate or prohibit a continuation of Executive’s employment following the expiration of the Employment Period upon such terms and conditions as the Employer and Executive may mutually agree.

    
      
        

    

    
    (c) Duties; Membership on Other Boards.  During the
        Employment Period, except for periods of absence occasioned by illness, reasonable vacation periods, and reasonable leaves of absence approved by the President and Chief Executive Officer (“CEO”), Executive shall devote substantially all his
        business time, attention, skill, and efforts to the faithful performance of his duties hereunder including activities and services related to the organization, operation and management of the Employer; provided, however, that, with the approval of
        the CEO, Executive may serve, or continue to serve, on the boards of directors of, and hold any other offices or positions in, business companies or business organizations, which, in the CEO’s judgment, will not present any conflict of interest
        with the Employer, or materially affect the performance of Executive’s duties pursuant to this Agreement it being understood that membership in and service on boards or committees of social, religious, charitable or similar organizations does not
        require CEO approval pursuant to this Section 2(c). For purposes of this Section 2(c), CEO approval shall be deemed to have been granted as to service with any such business company or organization that Executive was serving as of the date of this
        Agreement.

    
      
        3.  COMPENSATION, BENEFITS AND REIMBURSEMENT.

      

    

    (a) Base Salary.  The compensation specified under this Agreement shall constitute the
        salary and benefits paid for the duties described in Section 2.  The Employer shall pay Executive as compensation a salary of not less than $271,881 per year (“Base Salary”).  Such Base Salary shall be payable biweekly, or with such other frequency
        as officers and employees are generally paid. During the period of this Agreement, Executive’s Base Salary shall be reviewed at least annually. Such review may be conducted by the CEO, and the Employer may increase, but not decrease (except a
        decrease that is generally applicable to all employees) Executive’s Base Salary (with any increase in Base Salary to become “Base Salary” for purposes of this Agreement).

    (b) Bonus and Incentive Compensation.  Executive will be entitled to incentive
        compensation and bonuses as provided in any plan of the Employer in which Executive is eligible to participate.  Nothing paid to Executive under any such plan or arrangement will be deemed to be in lieu of other compensation to which Executive is
        entitled under this Agreement.

    (c) Employee Benefits.  The Employer will provide Executive with employee benefit plans,
        arrangements and perquisites substantially equivalent to those in which Executive was participating or otherwise deriving benefit from immediately prior to the beginning of the term of this Agreement, and the Employer will not, without Executive’s
        prior written consent, make any changes in such plans, arrangements or perquisites which would adversely affect Executive’s rights or benefits thereunder, except as to any changes that are applicable to all participating employees or as reasonably
        or customarily available.  Without limiting the generality of the foregoing provisions of this Section 3(c), Executive will be entitled to participate in or receive benefits under any employee benefit plans including, but not limited to, retirement
        plans, supplemental retirement plans, pension plans, profit-sharing plans, health-and-accident insurance plans, medical coverage or any other employee benefit plan or arrangement made available by the Employer in the future to its senior
        executives, subject to and on a basis consistent with the terms, conditions and overall administration of such plans and arrangements.

    
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    (d) Paid Time Off.  Executive shall be entitled to paid vacation time each year during the
        Employment Period (measured on a fiscal or calendar year basis, in accordance with the Employer’s usual practices), as well as sick leave, holidays and other paid absences in accordance with the Employer’s policies and procedures for senior
        executives.  Any unused paid time off during an annual period shall be treated in accordance with the Employer’s personnel policies as in effect from time to time.

    (e) Expense Reimbursements.  During the Employment Period, the Employer shall pay or
        reimburse Executive for all reasonable travel, entertainment and other reasonable expenses incurred by Executive during the course of performing his obligations under this Agreement, upon presentation to the Employer of an itemized account of such
        expenses in such form as the Employer may reasonably require.  All reimbursements under this Section 3(e) shall be paid as soon as practicable by the Employer; provided, however, that no payment shall be made later than March 15 of the year
        immediately following the year in which the expense was incurred.

    4. PAYMENTS TO EXECUTIVE UPON AN EVENT OF TERMINATION.

    (a) Upon the occurrence of an Event of Termination (as herein defined) during Executive’s term of employment under this Agreement, the provisions of this section shall apply. As
        used in this Agreement, an “Event of Termination’’ shall mean and include any one or more of the following, as set forth in Section 4(a)(i), (ii) or (iii):

    (i) the involuntary termination by the Employer of Executive’s full-time employment hereunder for any reason other than a Termination for Cause
        or a termination for Disability; and

    (ii) Executive’s voluntary resignation from the Employer’s employ upon any of the following (which shall be treated as termination of employment
        for “Good Reason”), unless consented to by Executive:

    (A) prior to a Change in Control, failure to appoint or re-appoint Executive to the level of Executive Vice President;

    (B) on or after a Change in Control, failure to appoint or re-appoint Executive to the title and position that the Executive held immediately
        prior to a Change in Control, or a material change in Executive’s function, duties, or responsibilities as compared to the Executive’s function, duties or responsibilities immediately prior to a Change in Control, which change would cause
        Executive’s position to become one of lesser responsibility, importance, or scope, to which Executive has not agreed in writing (and any such material change shall be deemed a continuing breach of this Agreement);

    (C) a relocation of Executive’s principal place of employment to a location that is more than 50 miles from the location of the Employer’s
        principal executive offices as of the date of this Agreement;

    (D) on or after a Change in Control, a reduction in Base Salary as compared to the Executive’s Base Salary immediately prior to a Change in
        Control;

    
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    (E) a liquidation or dissolution of the Bank or the Company other than liquidations or dissolutions that are caused by reorganizations that do
        not affect the status of the Executive; or

    (F) a material breach of this Agreement by the Employer.

    Upon the occurrence of any event described in clause (ii) above, Executive shall have the right to elect to terminate his employment
      under this Agreement by resignation within 90 days after the event giving rise to said right to elect, which termination by Executive shall be an Event of Termination.  The Employer shall have at least 30 days to remedy any event set forth in clauses
      (ii)(A) through (F) above; provided, however, that the Employer shall be entitled to waive such period and make an immediate payment hereunder.  If the Employer remedies the event within such 30 day cure period, then no Good Reason shall be deemed to
      exist with respect to such event.  If the Employer does not remedy the event within such 30 days cure period, then the Executive may deliver a Notice of Termination for Good Reason at any time within 60 days following the expiration of such cure
      period.

    (iii) Within 24 months following a Change in Control (as defined in Section 5 below), the Executive’s employment is involuntarily terminated
        without Cause or the Executive voluntarily resigns for Good Reason.

    No payments or benefits shall be due to Executive under this Agreement upon the termination of Executive’s
      employment except as provided in this Section 4.

    (b) Within 30 days following the occurrence of an Event of Termination under Section 4(a)(i), Section 4(a)(ii) or 4(a)(iii) of this Agreement, the Employer shall pay Executive, or,
        in the event of his subsequent death, his beneficiary or beneficiaries, or his estate, as the case may be, as severance pay or liquidated damages, or both, a lump sum cash amount equal to three times the sum of (i) the highest annual rate of Base
        Salary paid to Executive at any time under the Agreement or the Prior Agreement, plus (ii) the highest bonus paid to Executive with respect to the three completed fiscal years prior to the Event of Termination.  Such payments shall not be reduced
        in the event Executive obtains other employment following termination of employment.

    (c) Within 30 days following the occurrence of an Event of Termination under Section 4(a)(i), Section 4(a)(ii) or 4(a)(iii) of this Agreement, the Employer shall pay Executive, or
        in the event of his subsequent death, his beneficiary or beneficiaries, or his estate, as the case may be, a lump sum equal to the excess, if any, of the present value of the benefit that Executive would have been entitled to under the Employer’s
        defined benefit pension plan if Executive had continued working for the Employer for 36 months after the effective date of such Event of Termination, over the present value of the benefits to which Executive was actually entitled as of the
        effective date of such Event of Termination provided that the Executive is a participant in the defined benefit pension plan.

    (d) Upon the occurrence of an Event of Termination under Section 4(a)(i), Section 4(a)(ii) or 4(a)(iii) of this Agreement, the Employer will provide at the Employer’s expense, life
        insurance and non-taxable medical, dental and vision coverage substantially comparable, as reasonably or customarily available, to the coverage maintained by the Employer for Executive

    
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    prior to his termination, except to the extent such coverage may be changed in its application to all Employer employees.  Such
      coverage shall cease 36 months following the Event of Termination.  If the Bank cannot provide one or more of the benefits set forth in this paragraph because Executive is no longer an employee, and applicable rules and regulations (including, but
      not limited to the Affordable Care Act) prohibit such benefits or the payment of such benefits in the manner contemplated, or it would subject the Bank to penalties, then the Bank shall pay Executive a cash lump sum payment reasonably estimated to be
      equal to the value of such benefits or the value of the remaining benefits at the time of such determination. Such cash payment shall be made in a lump sum within 30 days after the later of Executive’s date of termination or the effective date of the
      rules or regulations prohibiting such benefits or subjecting the Bank to penalties.

    (e) Notwithstanding the foregoing, in the event the Executive is a Specified Employee (as defined herein), solely to the extent necessary to avoid penalties under Code Section 409A,
        payment to the Executive’s benefit pursuant to Sections 4(b), 4(c) and 4(d), if applicable, shall be made to the Executive on the first day of the seventh month following the Executive’s Event of Termination.  “Specified Employee” shall be
        interpreted to comply with Code Section 409A and shall mean a key employee within the meaning of Code Section 416(i) (without regard to paragraph 5 thereof), but an individual shall be a “Specified Employee” only if the Company or the Bank or any
        affiliate is a publicly traded company.

    (f) For purposes of this Agreement, Event of Termination shall be construed to require a “Separation from Service” as defined in Code Section 409A and the Treasury Regulations
        promulgated thereunder, such that the Employer and Executive reasonably anticipate that the level of bona fide services Executive would perform after termination would permanently decrease to a level that is less than 50% of the average level of
        bona fide services performed (whether as an employee or an independent contractor) over the immediately preceding 36-month period.

    (g) Notwithstanding anything in this Agreement to the contrary, Executive shall not be entitled to any severance payments or benefits under Section 4(b) of this Agreement unless and
        until Executive executes a release (the “Release”) of his claims against the Bank, the Company and any affiliate, and their officers, directors, successors and assigns, releasing said persons from any and all claims, rights, demands, causes of
        action, suits, arbitrations or grievances relating to the employment relationship, including claims under Title VII of the Civil Rights Act of 1964 (race, color, religion, sex and national origin discrimination); 42 U.S.C. Section 1981 (age
        discrimination); 29 U.S.C. Section 621-634 (age discrimination); 29 U.S.C. Section 206(d)(i) (equal pay); applicable state laws regarding discrimination including race, color, national origin, ancestry, religion, physical or mental disability,
        medical condition, military status, marital status, sex, gender, sexual orientation or age, but not including claims for benefits under tax-qualified plans or other benefit plans in which Executive is vested, claims for benefits required by
        applicable law or claims with respect to obligations set forth in this Agreement that survive the termination of this Agreement, and (ii) the severance payments or benefits shall not begin before the date Executive has signed (and not revoked) the
        Release and the Release has become irrevocable under the time period set forth under applicable law.  The Release must be executed and become irrevocable by the 60th day following the date of the Event of Termination, provided that if the 60-day
        period spans two (2) calendar years, then, to

    
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    the extent necessary to comply with Code Section 409A, the severance payments and benefits described in Section 4(b) will be paid, or
      commence, in the second calendar year.  In order to comply with the requirements of Code Section 409A and applicable age discrimination laws, the release shall be provided to Executive no later than his Date of Termination and Executive shall have no
      fewer than twenty-one (21) days to consider the release, and following Executive’s execution of the release, Executive shall have seven (7) days to revoke said release.

    (h) 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 (“SEC”) about a
        possible securities law violation without approval of the Bank (or any affiliate).  Executive further understands that this Agreement does not limit Executive’s ability to communicate with the SEC or otherwise participate in any investigation or
        proceeding that may be conducted by the SEC, including providing documents or other information, without notice to the Bank (or any affiliate) related to the possible securities law violation.  This Agreement does not limit Executive’s right to
        receive any resulting monetary award for information provided to the SEC.

    5. CHANGE IN CONTROL.

    (a) “Change in Control” shall mean (i) a change in the ownership of the Bank or the Company, (ii) a
          change in the effective control of the Bank or Company, or (iii) a change in the ownership of a substantial portion of the assets of the Bank or Company, as described below.

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

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

    (iii) A change in a substantial portion of the Bank’s or Company’s assets occurs on the date that any one person or more than one person acting as
        a group (as defined in Treasury Regulations section 1.409A-3(i)(5)(vii)(C)) acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the Bank or Company that have
        a total gross fair market value equal to or more than 40% of the total gross fair market value of (i) all of the assets of the Bank or Company, or (ii) the

    
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    value of the assets being disposed of, either of which is determined without regard to any liabilities associated with such assets.

    (b) Notwithstanding anything in this Agreement to the contrary, in the event that the aggregate payments or benefits to be made or afforded to Executive in the event of a Change in
        Control would be deemed to include an “excess parachute payment” under Section 280G of the Code or any successor thereto, then the cash severance payable under
        this Agreement shall be reduced by the minimum amount necessary to result in no portion of the payments and benefits payable by the Employer under Section 4 being non-deductible pursuant to Code Section 280G and subject to an excise tax imposed
        under Code Section 4999.

    
      
        6.  TERMINATION FOR DISABILITY OR DEATH.

      

    

    (a) Termination of Executive’s employment based on “Disability” shall be construed to comply with Code section 409A and shall be deemed to have occurred if (i) the Executive is
        unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death, or last for a continuous period of not less than 12 months; (ii) by reason of any
        medically determinable physical or mental impairment which can be expected to result in death, or last for a continuous period of not less than 12 months, the Executive is receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Employer; or (iii) the Executive is determined to be totally disabled by the Social Security
        Administration. The provisions of paragraph 6(b) and (c) shall apply upon the termination of the Executive’s employment for Disability.

    (b) The Executive shall be entitled to receive benefits under any short or long term disability plan maintained by the Employer.  To the extent such benefits are less than the
        Executive’s Base Salary, the Employer will pay Executive an amount equal to the difference between such disability plan benefits and the amount of Executive’s Base Salary for the longer of (i) the remaining term of the Agreement or (ii) one year
        following his termination of employment due to Disability.  Any payments required hereunder shall be payable in monthly installments and shall commence within 30
        days following the date on which Executive is determined to be Disabled.

    (c) The Employer will cause to be continued life insurance and non-taxable medical, dental and vision coverage substantially comparable, as reasonable or customarily available, to the coverage maintained by the Employer for Executive prior to his termination for Disability, except to the extent such coverage may be changed in its
        application to all Employer employees or not available on an individual basis to an employee terminated for Disability.  This coverage shall cease upon the earlier of (i) the date Executive returns to the full-time employment of the Employer; (ii)
        Executive’s full-time employment by another employer; (iii) Executive attaining the age of 65; or (iv) Executive’s death. If the Bank cannot provide one or more of the benefits set forth in this paragraph because Executive is no longer an employee,
        and applicable rules and regulations (including, but not limited to the Affordable Care Act) prohibit such benefits or the payment of such benefits in the manner contemplated, or it would subject the Bank to penalties, then the Bank shall pay
        Executive a cash lump sum payment reasonably estimated to be equal to the value of such benefits or the value of the remaining benefits at the time of such

    
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    determination. Such cash payment shall be made in a lump sum within 30 days after the later of Executive’s date of termination or the
      effective date of the rules or regulations prohibiting such benefits or subjecting the Bank to penalties.

    (d) In the event of Executive’s death during the term of the Agreement, his estate, legal representatives or named beneficiaries (as directed by executive in writing) shall be paid
        Executive’s Base Salary as defined in paragraph 3(a) at the rate in effect at the time of Executive’s death for a period of one (1) year from the date of Executive’s death, and the Employer will continue to provide non-taxable medical, dental,
        vision and other insurance benefits normally provided for Executive’s family (in accordance with its customary co-pay percentages) for one (1) year after
        Executive’s death.  If the Bank cannot provide one or more of the benefits set forth in this paragraph because Executive is no longer an employee, and applicable rules and regulations (including, but not limited to the Affordable Care Act) prohibit
        such benefits or the payment of such benefits in the manner contemplated, or it would subject the Bank to penalties, then the Bank shall pay Executive a cash lump sum payment reasonably estimated to be equal to the value of such benefits or the
        value of the remaining benefits at the time of such determination. Such cash payment shall be made in a lump sum within 30 days after the later of Executive’s date of termination or the effective date of the rules or regulations prohibiting such
        benefits or subjecting the Bank to penalties.

    Such payments are in addition to any other life insurance benefits that the Executive’s beneficiaries may be
      entitled to receive under any employee benefit plan maintained by the Employer for the benefit of the Executive, including, but not limited to, the Employer’s tax-qualified retirement plans.

    
      
        7.  TERMINATION FOR CAUSE.

      

    

    (a) The Employer may terminate the Executive’s employment at any time, but any termination other than Termination for Cause, as defined herein,
        shall not prejudice the Executive’s right to compensation or other benefits under the Agreement.  The Executive shall have no right to receive compensation or other benefits for any period after Termination for “Cause.”  Termination for “Cause”
        shall include termination because of the Executive’s personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving personal profit, material breach of the Employer’s Code of Ethics, material violation of the
        Sarbanes-Oxley requirements for officers of public companies that in the reasonable opinion of the CEO or the Board will likely cause substantial financial harm or substantial injury to the reputation of the Employer, willfully engaging in actions
        that in the reasonable opinion of the CEO or the Board will likely cause substantial financial harm or substantial injury to the business reputation of the Employer, intentional failure to perform stated duties, willful violation of any law, rule
        or regulation (other than routine traffic violations or similar offenses) or final cease-and-desist order, or material breach of any provision of the Agreement.

    (b) For purposes of this Section, no act or failure to act, on the part of the Executive, shall be considered “willful” unless it is done, or
        omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive’s action or omission was in the best interests of the Employer.  Any act, or failure to act, based upon the direction of the CEO or based upon the
        advice of counsel for the Employer shall be conclusively presumed to be done, or omitted to

    
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    be done, by the Executive in good faith and in the best interests of the Employer.

    
      
        8.  NOTICE.

      

    

    (a) Any purported termination by the Employer for Cause shall be communicated by Notice of Termination to Executive.  If, within 30 days after any Notice of Termination for Cause is
        given, Executive notifies the Employer that a dispute exists concerning the termination, the parties shall promptly proceed to arbitration.  Notwithstanding the pendency of any such dispute, the Employer shall discontinue paying Executive’s
        compensation until the dispute is finally resolved in accordance with this Agreement.  If it is determined that Executive is entitled to compensation and benefits under Section 4 of this Agreement, the payment of such compensation and benefits by
        the Employer shall commence immediately following the date of resolution by arbitration, with interest due Executive on the cash amount that would have been paid pending arbitration (at the prime rate as published in The Wall Street Journal from time to time).

    (b) Any other purported termination by the Employer or by Executive shall be communicated by a Notice of Termination to the other party.  If, within 30 days after any Notice of
        Termination is given, the party receiving such Notice of Termination notifies the other party that a dispute exists concerning the termination, the parties shall promptly proceed to arbitration as provided in below.  Notwithstanding the pendency of
        any such dispute, the Employer shall continue to pay Executive his Base Salary, and other compensation and benefits in effect when the notice giving rise to the dispute was given (except as to termination of Executive for Cause); provided, however,
        that such payments and benefits shall not continue beyond the date that is 36 months from the date the Notice of Termination is given.  In the event the voluntary termination by Executive of his employment is disputed by the Employer, and if it is
        determined in arbitration that Executive is not entitled to termination benefits pursuant to this Agreement, he shall return all cash payments made to him pending resolution by arbitration, with interest thereon at the prime rate as published in The Wall Street Journal from time to time if it is determined in arbitration that Executive’s voluntary termination of employment was not taken in
        good faith and not in the reasonable belief that grounds existed for his voluntary termination.  If it is determined that the Executive is entitled to receive severance benefits under this Agreement, then any continuation of Base Salary and other
        compensation and benefits made to the Executive under this Section shall offset the amount of any severance benefits that are due to the Executive under this Agreement.

    (c) For purposes of this Agreement, a “Notice of Termination” shall mean a written notice which shall indicate the specific termination provision in this Agreement relied upon and
        shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive’s employment under the provision so indicated and “Date of Termination” shall mean the date of the Notice of Termination.

    
      
        9.  POST-TERMINATION OBLIGATIONS.

      

    

    (a) The Executive hereby covenants and agrees that, for a period of one year following his termination of employment with the Employer, he shall
        not, without the written consent of the Employer, either directly or indirectly:

    
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    (i) solicit, offer employment to, or take any other action intended (or that a reasonable person acting in like circumstances would expect) to
        have the effect of causing any officer or employee of the Employer or any of its affiliates to terminate his or her employment and accept employment or become affiliated with, or provide services for compensation in any capacity whatsoever to, any
        business whatsoever that competes with the business of the Employer or any of its affiliates or has headquarters or offices within 50 miles of the locations in which the Employer or its affiliates has business operations or has filed an application
        for regulatory approval to establish an office;

    (ii) become an officer, employee, consultant, director, independent contractor, agent, sole proprietor, joint venturer, greater than 5%
        equity-owner or stockholder, partner or trustee of any savings bank, savings and loan association, savings and loan holding company, credit union, bank or bank
        holding company, insurance company or agency, any mortgage or loan broker or any other entity competing with the Employer or its affiliates in the same geographic locations where the Employer or its affiliates has material business interests;
        provided, however, that this restriction shall not apply if the Executive’s employment is terminated following a Change in Control; or

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

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

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

    
      
        10.  SOURCE OF PAYMENTS.

      

    

    All payments provided in this Agreement shall be timely paid in cash or check from the general funds of the Bank. 
      The Company, however, guarantees payment and provision of all

    
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    amounts and benefits due hereunder to Executive, and if such amounts and benefits due from the Bank are not timely paid or provided by
      the Bank, such amounts and benefits shall be paid or provided by the Company.

    
      
        11.  EFFECT ON PRIOR AGREEMENTS AND EXISTING BENEFITS PLANS.

      

    

    This Agreement contains the entire understanding between the parties hereto and supersedes any prior employment
      agreement between the Employer or any predecessor of the Employer and Executive, including the Prior Agreement, except that this Agreement shall not affect or operate to reduce any benefit or compensation inuring to Executive of a kind elsewhere
      provided.  No provision of this Agreement shall be interpreted to mean that Executive is subject to receiving fewer benefits than those available to him without reference to this Agreement.

    
      
        12.  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 effect any such action shall be null, void, and of no effect.

    (b) This Agreement shall be binding upon, and inure to the benefit of, Executive and the Employer and their respective successors and assigns.

    
      
        13.  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.

    
      
        14.  REQUIRED PROVISIONS.

      

    

    (a) The Employer may terminate Executive’s employment at any time, but any termination by the Employer’s Board other than Termination for Cause
        hereof 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 Termination for Cause.

    (b) If Executive is suspended from office and/or temporarily prohibited from participating in the conduct of the Employer’s affairs by a notice
        served under Section 8(e)(3) [12 U.S.C. §1818(e)(3)] or 8(g)(1) [12 U.S.C. §1818(g)(1)] of the Federal Deposit Insurance Act, the Employer’s obligations under this Agreement shall be suspended as of the date of service, unless stayed by appropriate
        proceedings.  If the charges in the notice are dismissed, the

    
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    Employer may in its discretion (i) pay Executive all or part of the compensation withheld while its Agreement obligations were
      suspended and (ii) reinstate (in whole or in part) any of its obligations which were suspended.

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

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

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

    (f) Notwithstanding anything herein contained to the contrary, any payments to Executive, whether pursuant to this Agreement or otherwise, are
        subject to and conditioned upon their compliance with Section 18(k) of the Federal Deposit Insurance Act, 12 U.S.C. Section 1828(k), and the regulations promulgated thereunder in 12 C.F.R. Part 359.

    
      
        15.  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.

    
      
        16.  HEADINGS FOR REFERENCE ONLY.

      

    

    The headings of sections and paragraphs herein are included solely for convenience of reference and shall not
      control the meaning or interpretation of any of the provisions of this Agreement.

    
      
        17.  GOVERNING LAW.

      

    

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

    
      12

      
        

    

    
      
        18.  ARBITRATION.

      

    

    Any dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by
      arbitration, conducted before a single arbitrator sitting in a location selected by the Executive within 25 miles of Stroudsburg, Pennsylvania in accordance with the rules of the American Arbitration Association then in effect.  Judgment may be
      entered on the arbitrator’s award in any court having jurisdiction; provided, however, that Executive shall be entitled to seek specific performance of his right to be paid until the Date of Termination during the pendency of any dispute or
      controversy arising under or in connection with this Agreement.

    
      
        19.  INDEMNIFICATION.

      

    

    (a) The Executive shall be provided with coverage under a standard directors’ and officers’ liability insurance policy.  The Employer shall indemnify Executive to the fullest extent
        permitted against all expenses and liabilities reasonably incurred by him in connection with or arising out of any action, suit or proceeding in which he may be involved by reason of his having been an officer of the Employer (whether or not he
        continues to be an officer at the time of the of incurring such expenses or liabilities) such expenses and liabilities to include, but not be limited to, judgments, court costs and attorneys’ fees and the cost of reasonable settlements (such
        settlements must be approved by the Board), provided that the Employer shall not be required to indemnify or reimburse Executive for legal expenses or liabilities incurred in connection with an action, suit or proceeding arising from any illegal or
        fraudulent act committed by Executive. Any such indemnification shall be made consistent with Section 18(k) of the Federal Deposit Insurance Act, 12 U.S.C. §1828(k), and the regulations issued thereunder in 12 C.F.R. Part 359.

    
      
        20.  NOTICE.  

      

    

    For the purposes of this Agreement, notices and all other communications provided for in this Agreement shall be in
      writing and shall be deemed to have been duly given when delivered or mailed by certified or registered mail, return receipt requested, postage prepaid, addressed to the respective addresses set forth below:

    

    

    	
            To the Company:

          	
            ESSA Bancorp, Inc.

            200 Palmer Street

            Stroudsburg, PA 18360

             

          
	
            To the Bank:

          	
            ESSA Bank & Trust

            200 Palmer Street

            Stroudsburg, PA 18360

             

          
	
            To Executive:

             

          	
            Charles D. Hangen

            Address on file with the Bank

          

    

    

    
      13

      
        

    

    SIGNATURES

    
      
        IN WITNESS
            WHEREOF, the Employer has caused this Agreement to be executed by its duly authorized representative, and Executive has signed this Agreement, on the date first above written.

        	 	
                ESSA BANCORP, INC.

                 

              
	 	 
	 	 
	 January 3, 2022

              	 
	
                Date

              	
                By: /s/ Gary S. Olson

                

                      Gary S. Olson, President and

                      Chief Executive Officer

              
	 	 
	 	 
	 	
                ESSA BANK & TRUST

              
	 	 
	 	 
	 January 3, 2022	 
	
                Date

              	
                By: /s/ Gary S. Olson

                      Gary S. Olson, President and

                      Chief Executive Officer

              
	 	 
	 	 
	 	
                EXECUTIVE:

              
	 	 
	 	 
	 January 3, 2022	 
	
                Date

              	
                 /s/ Charles D. Hangen

                

                Charles D. Hangen

                

              
	 	 

        

        

        

        

        

        

      

    

    

  

  14EXHIBIT 10.3

  

  

  

  

  

  
    AMENDED AND RESTATED

    EMPLOYMENT AGREEMENT

    

    

    This Amended and Restated Employment Agreement (the “Agreement”) is made effective as of January 3, 2022 (the
      “Effective Date”), by and between ESSA Bank & Trust, a Pennsylvania chartered stock savings bank with its principal office in Stroudsburg, Pennsylvania (the “Bank”), ESSA Bancorp, Inc. a Pennsylvania-chartered corporation that owns 100% of the
      common stock of the Bank (the “Company”), and Peter A. Gray (“Executive”).  Any reference to the “Employer” shall mean both the Company and the Bank.

    WHEREAS, the
      Executive is currently employed as Executive Vice President and Chief Banking Officer of the Employer pursuant to an employment agreement dated as of March 29, 2017 (the “Prior Agreement”); and

    WHEREAS, the
      Employer and the Executive desire to amend and restate the Prior Agreement to make certain changes to the Prior Agreement, as set forth herein.

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

    1. POSITION AND RESPONSIBILITIES.

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

    2. TERM AND DUTIES.

    (a) Fixed Three Year Term.  The term of this Agreement shall
        begin as of the Effective Date and shall continue thereafter for a period of three years (“Employment Period”).  This Agreement may be extended further at the discretion of the Board of Directors of the Employer (the “Board”). Notwithstanding
        anything herein to the contrary, in the event that the Company or Bank enters into a definitive agreement (“Change in Control Agreement”) to engage in a transaction that would be considered a Change in Control (as defined herein) or a Change in
        Control otherwise occurs, this Agreement shall automatically renew and shall remain in effect for a period of three (3) years following the effective time of the Change in Control; except in the event that the Change in Control Agreement is
        terminated or the Change in Control does not occur, the term of this Agreement will not so renew.

    (b) Continued Employment Following Termination of Employment Period. 
        Nothing in this Agreement shall mandate or prohibit a continuation of Executive’s employment following the expiration of the Employment Period upon such terms and conditions as the Employer and Executive may mutually agree.

    
      
        

    

    
    (c) Duties; Membership on Other Boards.  During the Employment
        Period, except for periods of absence occasioned by illness, reasonable vacation periods, and reasonable leaves of absence approved by the President and Chief Executive Officer (“CEO”), Executive shall devote substantially all his business time,
        attention, skill, and efforts to the faithful performance of his duties hereunder including activities and services related to the organization, operation and management of the Employer; provided, however, that, with the approval of the CEO,
        Executive may serve, or continue to serve, on the boards of directors of, and hold any other offices or positions in, business companies or business organizations, which, in the CEO’s judgment, will not present any conflict of interest with the
        Employer, or materially affect the performance of Executive’s duties pursuant to this Agreement it being understood that membership in and service on boards or committees of social, religious, charitable or similar organizations does not require
        CEO approval pursuant to this Section 2(c). For purposes of this Section 2(c), CEO approval shall be deemed to have been granted as to service with any such business company or organization that Executive was serving as of the date of this
        Agreement.

    
      
        3.  COMPENSATION, BENEFITS AND REIMBURSEMENT.

      

    

    (a) Base Salary.  The
        compensation specified under this Agreement shall constitute the salary and benefits paid for the duties described in Section 2.  The Employer shall pay Executive as compensation a salary of not less than $312,143 per year (“Base Salary”).  Such
        Base Salary shall be payable biweekly, or with such other frequency as officers and employees are generally paid. During the period of this Agreement, Executive’s Base Salary shall be reviewed at least annually. Such review may be conducted by the
        CEO, and the Employer may increase, but not decrease (except a decrease that is generally applicable to all employees) Executive’s Base Salary (with any increase in Base Salary to become “Base Salary” for purposes of this Agreement).

    (b) Bonus and Incentive Compensation. 
        Executive will be entitled to incentive compensation and bonuses as provided in any plan of the Employer in which Executive is eligible to participate.  Nothing paid to Executive under any such plan or arrangement will be deemed to be in lieu of
        other compensation to which Executive is entitled under this Agreement.

    (c) Employee Benefits.  The
        Employer will provide Executive with employee benefit plans, arrangements and perquisites substantially equivalent to those in which Executive was participating or otherwise deriving benefit from immediately prior to the beginning of the term of
        this Agreement, and the Employer will not, without Executive’s prior written consent, make any changes in such plans, arrangements or perquisites which would adversely affect Executive’s rights or benefits thereunder, except as to any changes that
        are applicable to all participating employees or as reasonably or customarily available.  Without limiting the generality of the foregoing provisions of this Section 3(c), Executive will be entitled to participate in or receive benefits under any
        employee benefit plans including, but not limited to, retirement plans, supplemental retirement plans, pension plans, profit-sharing plans, health-and-accident insurance plans, medical coverage or any other employee benefit plan or arrangement made
        available by the Employer in the future to its senior executives, subject to and on a basis consistent with the terms, conditions and overall administration of such plans and arrangements.

    
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    (d) Paid Time Off.  Executive
        shall be entitled to paid vacation time each year during the Employment Period (measured on a fiscal or calendar year basis, in accordance with the Employer’s usual practices), as well as sick leave, holidays and other paid absences in accordance
        with the Employer’s policies and procedures for senior executives.  Any unused paid time off during an annual period shall be treated in accordance with the Employer’s personnel policies as in effect from time to time.

    (e) Expense Reimbursements. 
        During the Employment Period, the Employer shall pay or reimburse Executive for all reasonable travel, entertainment and other reasonable expenses incurred by Executive during the course of performing his obligations under this Agreement, upon
        presentation to the Employer of an itemized account of such expenses in such form as the Employer may reasonably require.  All reimbursements under this Section 3(e) shall be paid as soon as practicable by the Employer; provided, however, that no
        payment shall be made later than March 15 of the year immediately following the year in which the expense was incurred.

    4. PAYMENTS TO EXECUTIVE UPON AN EVENT OF TERMINATION.

    (a) Upon the occurrence of an Event of Termination (as herein defined) during Executive’s term of employment under this
        Agreement, the provisions of this section shall apply. As used in this Agreement, an “Event of Termination’’ shall mean and include any one or more of the following, as set forth in Section 4(a)(i), (ii) or (iii):

    (i) the involuntary termination by the Employer of Executive’s full-time employment hereunder for any reason other than a Termination for Cause or a
        termination for Disability; and

    (ii) Executive’s voluntary resignation from the Employer’s employ upon any of the following (which shall be treated as termination of employment for
        “Good Reason”), unless consented to by Executive:

    (A)  prior to a Change in Control, failure to appoint or re-appoint Executive to the level of Senior Executive Vice President

    (B) on or after a Change in Control, failure to appoint or re-appoint Executive to the title and position that the Executive held
        immediately prior to a Change in Control, or a material change in Executive’s function, duties, or responsibilities as compared to the Executive’s function, duties or responsibilities immediately prior to a Change in Control, which change would
        cause Executive’s position to become one of lesser responsibility, importance, or scope, to which Executive has not agreed in writing (and any such material change shall be deemed a continuing breach of this Agreement);

    (C) a relocation of Executive’s principal place of employment to a location that is more than 50 miles from the location of the
        Employer’s principal executive offices as of the date of this Agreement;

    (D) on or after a Change in Control, a reduction in Base Salary as compared to the Executive’s Base Salary immediately prior to a
        Change in Control;

    
      3

      
        

    

    (E) a liquidation or dissolution of the Bank or the Company other than liquidations or dissolutions that are caused by
        reorganizations that do not affect the status of the Executive; or

    (F) a material breach of this Agreement by the Employer.

    Upon the occurrence of any event described in clause (ii) above, Executive shall have the right to elect to terminate his employment
      under this Agreement by resignation within 90 days after the event giving rise to said right to elect, which termination by Executive shall be an Event of Termination.  The Employer shall have at least 30 days to remedy any event set forth in clauses
      (ii)(A) through (F) above; provided, however, that the Employer shall be entitled to waive such period and make an immediate payment hereunder.  If the Employer remedies the event within such 30 day cure period, then no Good Reason shall be deemed to
      exist with respect to such event.  If the Employer does not remedy the event within such 30 days cure period, then the Executive may deliver a Notice of Termination for Good Reason at any time within 60 days following the expiration of such cure
      period.

    (iii) Within 24 months following a Change in Control (as defined in Section 5 below), the Executive’s employment is involuntarily terminated without
        Cause or the Executive voluntarily resigns for Good Reason.

    No payments or benefits shall be due to Executive under this Agreement upon the termination of Executive’s
      employment except as provided in this Section 4.

    (b) Within 30 days following the occurrence of an Event of Termination under Section 4(a)(i), Section 4(a)(ii) or 4(a)(iii) of
        this Agreement, the Employer shall pay Executive, or, in the event of his subsequent death, his beneficiary or beneficiaries, or his estate, as the case may be, as severance pay or liquidated damages, or both, a lump sum cash amount equal to three
        times the sum of (i) the highest annual rate of Base Salary paid to Executive at any time under the Agreement or the Prior Agreement, plus (ii) the highest bonus paid to Executive with respect to the three completed fiscal years prior to the Event
        of Termination.  Such payments shall not be reduced in the event Executive obtains other employment following termination of employment.

    (c) Within 30 days following the occurrence of an Event of Termination under Section 4(a)(i), Section 4(a)(ii) or 4(a)(iii) of
        this Agreement, the Employer shall pay Executive, or in the event of his subsequent death, his beneficiary or beneficiaries, or his estate, as the case may be, a lump sum equal to the excess, if any, of the present value of the benefit that
        Executive would have been entitled to under the Employer’s defined benefit pension plan if Executive had continued working for the Employer for 36 months after the effective date of such Event of Termination, over the present value of the benefits
        to which Executive was actually entitled as of the effective date of such Event of Termination provided that the Executive is a participant in the defined benefit pension plan.

    (d) Upon the occurrence of an Event of Termination under Section 4(a)(i), Section 4(a)(ii) or 4(a)(iii) of this Agreement, the
        Employer will provide at the Employer’s expense, life insurance and non-taxable medical, dental and vision coverage substantially comparable, as reasonably or customarily available, to the coverage maintained by the Employer for Executive

    
      4

      
        

    

    prior to his termination, except to the extent such coverage may be changed in its application to all Employer employees.  Such
      coverage shall cease 36 months following the Event of Termination.  If the Bank cannot provide one or more of the benefits set forth in this paragraph because Executive is no longer an employee, and applicable rules and regulations (including, but
      not limited to the Affordable Care Act) prohibit such benefits or the payment of such benefits in the manner contemplated, or it would subject the Bank to penalties, then the Bank shall pay Executive a cash lump sum payment reasonably estimated to be
      equal to the value of such benefits or the value of the remaining benefits at the time of such determination. Such cash payment shall be made in a lump sum within 30 days after the later of Executive’s date of termination or the effective date of the
      rules or regulations prohibiting such benefits or subjecting the Bank to penalties.

    (e) Notwithstanding the foregoing, in the event the Executive is a Specified Employee (as defined herein), solely to the extent
        necessary to avoid penalties under Code Section 409A, payment to the Executive’s benefit pursuant to Sections 4(b), 4(c) and 4(d), if applicable, shall be made to the Executive on the first day of the seventh month following the Executive’s Event
        of Termination.  “Specified Employee” shall be interpreted to comply with Code Section 409A and shall mean a key employee within the meaning of Code Section 416(i) (without regard to paragraph 5 thereof), but an individual shall be a “Specified
        Employee” only if the Company or the Bank or any affiliate is a publicly traded company.

    (f) For purposes of this Agreement, Event of Termination shall be construed to require a “Separation from Service” as defined in
        Code Section 409A and the Treasury Regulations promulgated thereunder, such that the Employer and Executive reasonably anticipate that the level of bona fide services Executive would perform after termination would permanently decrease to a level
        that is less than 50% of the average level of bona fide services performed (whether as an employee or an independent contractor) over the immediately preceding 36-month period.

    (g) Notwithstanding anything in this Agreement to the contrary, Executive shall not be entitled to any severance payments or
        benefits under Section 4(b) of this Agreement unless and until (i) Executive executes a release (the “Release”) of his claims against the Bank, the Company and any affiliate, and their officers, directors, successors and assigns, releasing said
        persons from any and all claims, rights, demands, causes of action, suits, arbitrations or grievances relating to the employment relationship, including claims under Title VII of the Civil Rights Act of 1964 (race, color, religion, sex and national
        origin discrimination); 42 U.S.C. Section 1981 (age discrimination);  29 U.S.C. Section 621-634 (age discrimination); 29 U.S.C. Section 206(d)(i) (equal pay);  applicable state laws regarding discrimination including race, color, national origin,
        ancestry, religion, physical or mental disability, medical condition, military status, marital status, sex, gender, sexual orientation or age, but not including claims for benefits under tax-qualified plans or other benefit plans in which Executive
        is vested, claims for benefits required by applicable law or claims with respect to obligations set forth in this Agreement that survive the termination of this Agreement, and (ii) the severance payments or benefits shall not begin before the date
        Executive has signed (and not revoked) the Release and the Release has become irrevocable under the time period set forth under applicable law.  The Release must be executed and become irrevocable by the 60th day following the date of the Event of
        Termination, provided that if the 60-day period spans two (2) calendar years, then, to

    
      5

      
        

    

    the extent necessary to comply with Code Section 409A, the severance payments and benefits described in Section 4(b) will be paid, or
      commence, in the second calendar year.  In order to comply with the requirements of Code Section 409A and applicable age discrimination laws, the release shall be provided to Executive no later than his Date of Termination and Executive shall have no
      fewer than twenty-one (21) days to consider the release, and following Executive’s execution of the release, Executive shall have seven (7) days to revoke said release.

    (h) 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 (“SEC”) about a possible securities law violation without approval of the Bank (or any affiliate).  Executive further understands that this Agreement does not limit Executive’s ability to
        communicate with the SEC or otherwise participate in any investigation or proceeding that may be conducted by the SEC, including providing documents or other information, without notice to the Bank (or any affiliate) related to the possible
        securities law violation.  This Agreement does not limit Executive’s right to receive any resulting monetary award for information provided to the SEC.

    5. CHANGE IN CONTROL.

    (a) “Change in Control” shall mean (i) a
          change in the ownership of the Bank or the Company, (ii) a change in the effective control of the Bank or Company, or (iii) a change in the ownership of
          a substantial portion of the assets of the Bank or Company, as described below.

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

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

    (iii) A change in a substantial portion of the Bank’s or Company’s assets occurs on the date that any one person or more than one person acting as a
        group (as defined in Treasury Regulations section 1.409A-3(i)(5)(vii)(C)) acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the Bank or Company that have a
        total gross fair market value equal to or more than 40% of the total gross fair market value of (i) all of the assets of the Bank or Company, or (ii) the

    
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    value of the assets being disposed of, either of which is determined without regard to any liabilities associated with such assets.

    (b) Notwithstanding anything in this Agreement to the contrary, in the event that the aggregate payments or benefits to be made
        or afforded to Executive in the event of a Change in Control would be deemed to include an “excess parachute payment” under Section 280G of the Code or any successor thereto, then the cash severance payable under this Agreement shall be reduced by
        the minimum amount necessary to result in no portion of the payments and benefits payable by the Employer under Section 4 being non-deductible pursuant to Code Section 280G and subject to an excise tax imposed under Code Section 4999.

    
      
        6.  TERMINATION FOR DISABILITY OR DEATH.

      

    

    (a) Termination of Executive’s employment based on “Disability” shall be construed to comply with Code section 409A and shall be
        deemed to have occurred if (i) the Executive is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death, or last for a continuous period of
        not less than 12 months; (ii) by reason of any medically determinable physical or mental impairment which can be expected to result in death, or last for a continuous period of not less than 12 months, the Executive is receiving income replacement
        benefits for a period of not less than three months under an accident and health plan covering employees of the Employer; or (iii) the Executive is determined to be totally disabled by the Social Security Administration. The provisions of paragraph
        6(b) and (c) shall apply upon the termination of the Executive’s employment for Disability.

    (b) The Executive shall be entitled to receive benefits under any short or long term disability plan maintained by the Employer. 
        To the extent such benefits are less than the Executive’s Base Salary, the Employer will pay Executive an amount equal to the difference between such disability plan benefits and the amount of Executive’s Base Salary for the longer of (i) the
        remaining term of the Agreement or (ii) one year following his termination of employment due to Disability.  Any payments required hereunder shall be payable in monthly installments and shall commence within 30 days following the date on which
        Executive is determined to be Disabled.

    (c) The Employer will cause to be continued life insurance and non-taxable medical, dental and vision coverage substantially
        comparable, as reasonable or customarily available, to the coverage maintained by the Employer for Executive prior to his termination for Disability, except to the extent such coverage may be changed in its application to all Employer employees or
        not available on an individual basis to an employee terminated for Disability.  This coverage shall cease upon the earlier of (i) the date Executive returns to the full-time employment of the Employer; (ii) Executive’s full-time employment by
        another employer; (iii) Executive attaining the age of 65; or (iv) Executive’s death. If the Bank cannot provide one or more of the benefits set forth in this paragraph because Executive is no longer an employee, and applicable rules and
        regulations (including, but not limited to the Affordable Care Act) prohibit such benefits or the payment of such benefits in the manner contemplated, or it would subject the Bank to penalties, then the Bank shall pay Executive a cash lump sum
        payment reasonably estimated to be equal to the value of such benefits or the value of the remaining benefits at the time of such

    
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    determination. Such cash payment shall be made in a lump sum within 30 days after the later of Executive’s date of termination or the
      effective date of the rules or regulations prohibiting such benefits or subjecting the Bank to penalties.

    (d) In the event of Executive’s death during the term of the Agreement, his estate, legal representatives or named beneficiaries
        (as directed by executive in writing) shall be paid Executive’s Base Salary as defined in paragraph 3(a) at the rate in effect at the time of Executive’s death for a period of one (1) year from the date of Executive’s death, and the Employer will
        continue to provide non-taxable medical, dental, vision and other insurance benefits normally provided for Executive’s family (in accordance with its customary co-pay percentages) for one (1) year after Executive’s death.  If the Bank cannot
        provide one or more of the benefits set forth in this paragraph because Executive is no longer an employee, and applicable rules and regulations (including, but not limited to the Affordable Care Act) prohibit such benefits or the payment of such
        benefits in the manner contemplated, or it would subject the Bank to penalties, then the Bank shall pay Executive a cash lump sum payment reasonably estimated to be equal to the value of such benefits or the value of the remaining benefits at the
        time of such determination. Such cash payment shall be made in a lump sum within 30 days after the later of Executive’s date of termination or the effective date of the rules or regulations prohibiting such benefits or subjecting the Bank to
        penalties.

    Such payments are in addition to any other life insurance benefits that the Executive’s beneficiaries may be
      entitled to receive under any employee benefit plan maintained by the Employer for the benefit of the Executive, including, but not limited to, the Employer’s tax-qualified retirement plans.

    
      
        7.  TERMINATION FOR CAUSE.

      

    

    (a) The Employer may terminate the Executive’s employment at any time, but any termination other than Termination for Cause, as defined herein, shall not
        prejudice the Executive’s right to compensation or other benefits under the Agreement.  The Executive shall have no right to receive compensation or other benefits for any period after Termination for “Cause.”  Termination for “Cause” shall include
        termination because of the Executive’s personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving personal profit, material breach of the Employer’s Code of Ethics, material violation of the Sarbanes-Oxley
        requirements for officers of public companies that in the reasonable opinion of the CEO or the Board will likely cause substantial financial harm or substantial injury to the reputation of the Employer, willfully engaging in actions that in the
        reasonable opinion of the CEO or the Board will likely cause substantial financial harm or substantial injury to the business reputation of the Employer, intentional failure to perform stated duties, willful violation of any law, rule or regulation
        (other than routine traffic violations or similar offenses) or final cease-and-desist order, or material breach of any provision of the Agreement.

    (b) For purposes of this Section, no act or failure to act, on the part of the Executive, shall be considered “willful” unless it is done, or omitted to
        be done, by the Executive in bad faith or without reasonable belief that the Executive’s action or omission was in the best interests of the Employer.  Any act, or failure to act, based upon the direction of the CEO or based upon the advice of
        counsel for the Employer shall be conclusively presumed to be done, or omitted to

    
      8

      
        

    

    be done, by the Executive in good faith and in the best interests of the Employer.

    
      
        8.  NOTICE.

      

    

    (a) Any purported termination by the Employer for Cause shall be communicated by Notice of Termination to Executive.  If, within
        30 days after any Notice of Termination for Cause is given, Executive notifies the Employer that a dispute exists concerning the termination, the parties shall promptly proceed to arbitration.  Notwithstanding the pendency of any such dispute, the
        Employer shall discontinue paying Executive’s compensation until the dispute is finally resolved in accordance with this Agreement.  If it is determined that Executive is entitled to compensation and benefits under Section 4 of this Agreement, the
        payment of such compensation and benefits by the Employer shall commence immediately following the date of resolution by arbitration, with interest due Executive on the cash amount that would have been paid pending arbitration (at the prime rate as
        published in The Wall Street Journal from time to time).

    (b) Any other purported termination by the Employer or by Executive shall be communicated by a Notice of Termination to the other
        party.  If, within 30 days after any Notice of Termination is given, the party receiving such Notice of Termination notifies the other party that a dispute exists concerning the termination, the parties shall promptly proceed to arbitration as
        provided in below.  Notwithstanding the pendency of any such dispute, the Employer shall continue to pay Executive his Base Salary, and other compensation and benefits in effect when the notice giving rise to the dispute was given (except as to
        termination of Executive for Cause); provided, however, that such payments and benefits shall not continue beyond the date that is 36 months from the date the Notice of Termination is given.  In the event the voluntary termination by Executive of
        his employment is disputed by the Employer, and if it is determined in arbitration that Executive is not entitled to termination benefits pursuant to this Agreement, he shall return all cash payments made to him pending resolution by arbitration,
        with interest thereon at the prime rate as published in The Wall Street Journal from time to time if it is determined in arbitration
        that Executive’s voluntary termination of employment was not taken in good faith and not in the reasonable belief that grounds existed for his voluntary termination.  If it is determined that the Executive is entitled to receive severance benefits
        under this Agreement, then any continuation of Base Salary and other compensation and benefits made to the Executive under this Section shall offset the amount of any severance benefits that are due to the Executive under this Agreement.

    (c) For purposes of this Agreement, a “Notice of Termination” shall mean a written notice which shall indicate the specific
        termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive’s employment under the provision so indicated and “Date of Termination”
        shall mean the date of the Notice of Termination.

    
      
        9.  POST-TERMINATION OBLIGATIONS.

      

    

    (a) The Executive hereby covenants and agrees that, for a period of one year following his termination of employment with the Employer, he shall not,
        without the written consent of the Employer, either directly or indirectly:

    
      9

      
        

    

    (i) solicit, offer employment to, or take any other action intended (or that a reasonable person acting in like circumstances would expect) to have the
        effect of causing any officer or employee of the Employer or any of its affiliates to terminate his or her employment and accept employment or become affiliated with, or provide services for compensation in any capacity whatsoever to, any business
        whatsoever that competes with the business of the Employer or any of its affiliates or has headquarters or offices within 50 miles of the locations in which the Employer or its affiliates has business operations or has filed an application for
        regulatory approval to establish an office;

    (ii) become an officer, employee, consultant, director, independent contractor, agent, sole proprietor, joint venturer, greater than 5% equity-owner
        or stockholder, partner or trustee of any savings bank, savings and loan association, savings and loan holding company, credit union, bank or bank holding company,
        insurance company or agency, any mortgage or loan broker or any other entity competing with the Employer or its affiliates in the same geographic locations where the Employer or its affiliates has material business interests; provided, however, that this restriction shall not apply if the Executive’s employment is terminated following a Change in Control; or

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

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

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

    
      
        10.  SOURCE OF PAYMENTS.

      

    

    All payments provided in this Agreement shall be timely paid in cash or check from the general funds of the Bank. 
      The Company, however, guarantees payment and provision of all

    
      10

      
        

    

    amounts and benefits due hereunder to Executive, and if such amounts and benefits due from the Bank are not timely paid or provided by
      the Bank, such amounts and benefits shall be paid or provided by the Company.

    
      
        11.  EFFECT ON PRIOR AGREEMENTS AND EXISTING BENEFITS PLANS.

      

    

    This Agreement contains the entire understanding between the parties hereto and supersedes any prior employment
      agreement between the Employer or any predecessor of the Employer and Executive, including the Prior Agreement, except that this Agreement shall not affect or operate to reduce any benefit or compensation inuring to Executive of a kind elsewhere
      provided.  No provision of this Agreement shall be interpreted to mean that Executive is subject to receiving fewer benefits than those available to him without reference to this Agreement.

    
      
        12.  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 effect any such action shall be
        null, void, and of no effect.

    (b) This Agreement shall be binding upon, and inure to the benefit of, Executive and the Employer and their respective successors
        and assigns.

    
      
        13.  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.

    
      
        14.  REQUIRED PROVISIONS.

      

    

    (a) The Employer may terminate Executive’s employment at any time, but any termination by the Employer’s Board other than Termination for Cause hereof
        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 Termination for Cause.

    (b) If Executive is suspended from office and/or temporarily prohibited from participating in the conduct of the Employer’s affairs by a notice served
        under Section 8(e)(3) [12 U.S.C. §1818(e)(3)] or 8(g)(1) [12 U.S.C. §1818(g)(1)] of the Federal Deposit Insurance Act, the Employer’s obligations under this Agreement shall be suspended as of the date of service, unless stayed by appropriate
        proceedings.  If the charges in the notice are dismissed, the

    
      11

      
        

    

    Employer may in its discretion (i) pay Executive all or part of the compensation withheld while its Agreement obligations were
      suspended and (ii) reinstate (in whole or in part) any of its obligations which were suspended.

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

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

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

    (f) Notwithstanding anything herein contained to the contrary, any payments to Executive, whether pursuant to this Agreement or otherwise, are subject to
        and conditioned upon their compliance with Section 18(k) of the Federal Deposit Insurance Act, 12 U.S.C. Section 1828(k), and the regulations promulgated thereunder in 12 C.F.R. Part 359.

    
      
        15.  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.

    
      
        16.  HEADINGS FOR REFERENCE ONLY.

      

    

    The headings of sections and paragraphs herein are included solely for convenience of reference and shall not
      control the meaning or interpretation of any of the provisions of this Agreement.

    
      
        17.  GOVERNING LAW.

      

    

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

    
      12

      
        

    

    
      
        18.  ARBITRATION.

      

    

    Any dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by
      arbitration, conducted before a single arbitrator sitting in a location selected by the Executive within 25 miles of Stroudsburg, Pennsylvania in accordance with the rules of the American Arbitration Association then in effect.  Judgment may be
      entered on the arbitrator’s award in any court having jurisdiction; provided, however, that Executive shall be entitled to seek specific performance of his right to be paid until the Date of Termination during the pendency of any dispute or
      controversy arising under or in connection with this Agreement.

    
      
        19.  INDEMNIFICATION.

      

    

    (a) The Executive shall be provided with coverage under a standard directors’ and officers’ liability insurance policy.  The
        Employer shall indemnify Executive to the fullest extent permitted against all expenses and liabilities reasonably incurred by him in connection with or arising out of any action, suit or proceeding in which he may be involved by reason of his
        having been an officer of the Employer (whether or not he continues to be an officer at the time of the of incurring such expenses or liabilities) such expenses and liabilities to include, but not be limited to, judgments, court costs and
        attorneys’ fees and the cost of reasonable settlements (such settlements must be approved by the Board), provided that the Employer shall not be required to indemnify or reimburse Executive for legal expenses or liabilities incurred in connection
        with an action, suit or proceeding arising from any illegal or fraudulent act committed by Executive. Any such indemnification shall be made consistent with Section 18(k) of the Federal Deposit Insurance Act, 12 U.S.C. §1828(k), and the regulations
        issued thereunder in 12 C.F.R. Part 359.

    
      
        20.  NOTICE.  

      

    

    For the purposes of this Agreement, notices and all other communications provided for in this Agreement shall be in
      writing and shall be deemed to have been duly given when delivered or mailed by certified or registered mail, return receipt requested, postage prepaid, addressed to the respective addresses set forth below:

    

    

    	
            To the Company:

          	
            ESSA Bancorp, Inc.

            200 Palmer Street

            Stroudsburg, PA 18360

             

          
	
            To the Bank:

          	
            ESSA Bank & Trust

            200 Palmer Street

            Stroudsburg, PA 18360

             

          
	
            To Executive:

             

          	
            Peter A. Gray

            Address on file with the Bank

          

    

    

    
      13

      
        

    

    SIGNATURES

    
      
        IN WITNESS
            WHEREOF, the Employer has caused this Agreement to be executed by its duly authorized representative, and Executive has signed this Agreement, on the date first above written.

        	 	
                ESSA BANCORP, INC.

                 

              
	 	 
	 	 
	 January 3, 2022

              	 
	
                Date

              	
                By: /s/ Gary S. Olson

                

                      Gary S. Olson, President and

                      Chief Executive Officer

              
	 	 
	 	 
	 	
                ESSA BANK & TRUST

              
	 	 
	 	 
	 January 3, 2022	 
	
                Date

              	
                By: /s/ Gary S. Olson

                      Gary S. Olson, President and

                      Chief Executive Officer

              
	 	 
	 	 
	 	
                EXECUTIVE:

              
	 	 
	 	 
	 January 3, 2022	 
	
                Date

              	
                 /s/ Peter A. Gray

                

                Peter A. Gray

                

              
	 	 

        

        

        

        

        

        

      

    

    14

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