Document:

Exhibit 10.2

 

Metropolitan
Bank Holding Corporation

 

AND
MetropOLitan commercial bank

 

EMPLOYMENT
AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
(“Agreement”) is made effective as of July 27, 2016 (the “Commencement Date”),
by and among Metropolitan Bank Holding Corporation, a New York corporation with its principal place of business located at 99
Park Avenue, New York, New York 10016 (the “Company”), its wholly-owned subsidiary, Metropolitan Commercial
Bank, a commercial bank with its main office also at 99 Park Avenue New York, New York 10016 (the “Bank”),
and Mark R. DeFazio, a natural person residing at 347 Deere Park Place, Staten Island, New York 10301 (“Executive”).

 

WHEREAS, Executive
is currently employed as President and Chief Executive Officer of the Company and of the Bank; and

 

WHEREAS, the Company
and the Bank consider the maintenance of a competent and experienced executive management team to be essential to their long-term
success; and

 

WHEREAS, the Board
of Directors of the Company (the “Company’s Board”) has determined that it is in the best interests
of the Company that Executive continue to serve as the Company’s President and Chief Executive Officer, and the Board of
Directors of the Bank (the “Bank’s Board”) has determined that it is in the best interests of the
Bank that Executive continue to serve as the Bank’s President and Chief Executive Officer, in each case pursuant to this
written employment agreement, which will be the successor to, and will supersede in its entirety, Executive’s prior employment
agreement with the Bank dated July 28, 2015, and any and all other prior agreements and understandings between Executive and either
the Company or the Bank regarding Executive’s employment by either; and

 

WHEREAS, Executive
is willing to continue to serve the Company and the Bank in the positions and on the terms and conditions hereinafter set forth;

 

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

 

1.        POSITION
AND RESPONSIBILITIES.

 

(a)       Positions.
During the period of Executive’s employment under this Agreement, Executive agrees to serve as President and Chief Executive
Officer of the Company and as President and Chief Executive Officer of the Bank.

 

     

     

    

 

(b)       Responsibilities.
As President and Chief Executive Officer of both the Company and the Bank, Executive shall have general responsibility for the
management and control of the business and affairs of both the Company and the Bank, and shall perform all duties and have all
powers that are commonly incident to such offices or which, consistent with such offices, may be delegated to Executive by the
Company’s Board or the Bank’s Board or are set forth in the bylaws of the Company or the Bank, including but not limited
to the day to day operations of the Company and the Bank. In addition, Executive shall use his best efforts toward development
of the Bank, in facets including but not limited to development of new product lines, regulatory interface, raising capital and
conducting acquisitions. During the period of Executive’s employment under this Agreement, except for periods of absence
occasioned by illness, vacation, or other reasonable leaves of absence, Executive shall devote substantially all of his business
time, attention, skill and efforts to the faithful performance of his duties under this Agreement, including activities and services
related to the organization, operation and management of the Company, the Bank and their subsidiaries, as well as participation
in community, professional and civic organizations; provided, however, that, with the approval of the Company’s
Board, as evidenced by a resolution thereof, Executive may serve, or continue to serve, on the boards of directors of, and hold
any other offices or positions in, any such other companies or organizations that, in the judgment of the Company’s Board,
will not present any conflict of interest with the Company, the Bank or their subsidiaries, or materially negatively impact or
interfere with Executive’s performance of his duties pursuant to this Agreement.

 

(c)       Working
Facilities. The Company and/or the Bank will furnish Executive with the working facilities and staff customary for executive
officers with the title and duties set forth in this Agreement and as are necessary for him to perform his duties. The location
of such facilities and staff shall be at the main office of the Bank or such other office as may be agreed upon from time to time
by the parties.

 

2.        TERM
OF EMPLOYMENT.

 

(a)       Term.
The term of Executive’s employment under this Agreement (the “Term”) shall be (i) the initial term
of employment, consisting of the period commencing on the Commencement Date and expiring on the third anniversary of the Commencement
Date, plus (ii) any and all automatic extensions of the Term made pursuant to paragraph (b) of this Section 2 below. Upon expiration
of the last day of the Term, if and as thus extended (the “Expiration Date”), Executive’s employment
under this Agreement shall terminate, if it has not earlier terminated pursuant to the provisions hereof.

 

(b)       Extension
of Term. The Term of Executive’s employment under this Agreement shall be automatically extended by one day upon completion
of each day of Executive’s employment hereunder, such that a constantly extending thirty-six (36) calendar month Term shall
remain in effect hereunder, provided, however, that the Company and/or the Bank may elect at any time, for any reason
or no reason, to discontinue such automatic extension, by delivery of a written notice of such discontinuation to the Executive,
prepared and delivered in accordance with the provisions of Section 8(a) below (any such notice, a “Non-renewal Notice”),
in which event the Term of Executive’s employment under this Agreement shall no longer be automatically extended for each
day of employment hereunder, but rather shall expire on a fixed Expiration Date, such being the third anniversary of the date of
the Non-renewal Notice, as specified in such notice. During the period commencing not more than sixty (60) and not less than thirty
(30) days prior to each anniversary of the Commencement Date of this Agreement (each, an “Anniversary Date”),
assuming no prior Non-renewal Notice has been delivered by the Company and/or the Bank to Executive, the Company’s Board
and the Bank’s Board will conduct a review of Executive’s performance, and in connection therewith, will make a determination
as to whether the automatic extension of the Term of Executive’s employment, as described in the preceding sentence, will
be permitted to continue, or alternatively, whether such automatic extension of the Term will be discontinued, such that a fixed
Expiration Date will be established.

 

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(c)       Early
Termination. At any time during the Term of this Agreement, Executive’s employment hereunder may be terminated early,
i.e., before the Expiration Date, (i) by the mutual agreement of the parties hereto, (ii) by one or more of the parties hereto,
without the consent of the other party or parties, under certain circumstances and subject to certain terms and conditions as set
forth in Sections 4, 5 and 7 hereof, or (iii) upon the death, Disability or Retirement of Executive, as set forth in Section 12
hereof. The effective date of any such early termination of Executive’s employment hereunder shall be referred to as the
“Termination Date.”

 

3.        COMPENSATION
AND BENEFITS.

 

(a)       Base
Salary. During the Term of Executive’s employment under this Agreement, the Bank shall pay to Executive for all services
rendered by Executive under this Agreement a single base salary (“Base Salary”) at the initial rate of
$700,000 per annum, subject to possible subsequent increases from time to time as provided in the ensuing sentence of this paragraph
(a), which Base Salary will be payable in accordance with the customary payroll practices of the Company and/or the Bank. The Company’s
Board and the Bank’s Board shall review not less often than annually the then current per annum rate of Executive’s
Base Salary, based upon such factors as each board deems relevant, and in connection with any such review, may enter into negotiations
with Executive to increase Executive’s Base Salary above its then current per annum rate (in which event the new base salary
shall become Executive’s “Base Salary” under this Agreement), or to maintain Executive’s Base Salary at
its then current per annum rate. Under no circumstances, however, may the Company’s Board and the Bank’s Board, acting
jointly, decrease Executive’s Base Salary to a per annum rate below the per annum rate then in effect, unless Executive shall
have expressly consented in advance in writing to such decrease based upon a Company-wide decrease to most executive officers compensation
due to the economic performance of the Company and the Bank, and provided that the percentage decrease to Executive’s Base
Salary shall not be in excess of the average decrease to the other executive officer’s base salaries. In the absence of any
review or other action by the Company’s Board and the Bank’s Board, Executive shall continue to receive his Base Salary
at the per annum rate then in effect, as last approved by such boards. The parties agree that the negotiations regarding Executive’s
Base Salary shall be concluded no later than February 28 of the year, retroactive to January 1 of such year (with any amounts owed
from January 1 to the date of determination of the new Base Salary paid in the next payroll immediately following such determination).

 

(b)       Bonus.
Executive shall be entitled to annual bonus payments (the “Bonus Payments”), to be determined by
the Board after discussion with the Executive. Any such Bonus Payment shall be made not later than March 15th of the calendar year
following the calendar year in which the services are performed to which the Bonus relates (so that the Bonus constitutes a short-term
deferral exempt from Code Section 409A, as defined herein). Payment to Executive for any calendar year of a Bonus, if any, shall
not be construed as an increase in Executive’s Base Salary. Any payment to Executive of a Bonus in any year shall not be
offset against, and shall not preclude payment to Executive of, any other special cash incentive compensation or cash bonus under
any other incentive compensation plan, program or arrangement of the Company or the Bank that may be applicable to Executive from
time to time.

 

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(c)       Vacation
and Holidays. Executive shall be entitled to five (5) weeks paid vacation each year, to be taken at times selected by him and
which are, to the maximum extent possible, at a time mutually agreed upon by the parties. Executive shall also be entitled to paid
legal holidays in accordance with the policies of the Company.

 

(d)       Stock-Based
Awards. Executive shall be entitled to participate in any equity or equity-based compensation plans as may be adopted by the
Company’s Board and, as necessary, approved by the Company’s stockholders from time to time, under which awards may
be granted to senior officers or employees of the Company or the Bank or to members of the Company’s Board or the Bank’s
Board who also serve as such senior officers or employees (any such, a “Stock Plan”). The terms and conditions
of any such types of equity awards granted to Executive generally shall be not less favorable from the standpoint of the award
recipient than the terms and conditions of such types of awards granted to other similarly situated senior officers, subject to
the terms and conditions in the relevant Stock Plan.

 

(e)       Other
Employee Benefits. In addition to any other compensation or benefits provided for under this Agreement, Executive shall be
entitled to continue to participate in any employee benefit plans, arrangements and perquisites of the Company and/or the Bank
in which he participated or was eligible to participate as of the Commencement Date. Executive shall also be entitled to participate
in any employee benefits or perquisites the Company and/or the Bank offers to senior officers or employees from time to time during
the Term of his employment. Neither the Company nor the Bank will, 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 (other
than a reduction or elimination of Executive’s benefits under one or more benefit plans maintained by the Company and/or
the Bank as part of a good faith, overall reduction or elimination of such plans or benefits applicable to all participants in
a manner that does not discriminate against Executive (except as such discrimination may be necessary to comply with applicable
law)) without separately providing for an arrangement that both ensures Executive receives or will receive the economic value that
Executive would otherwise lose as a result of such adverse changes, and which does not give rise to a violation of Code Section
409A. Without limiting the generality of the foregoing provisions of this paragraph (e), Executive shall be entitled to participate
in or receive benefits under all plans relating to stock options, restricted stock awards or restricted stock units, stock purchases,
pension, profit sharing, employee stock ownership, supplemental retirement, directors’ retirement, group life insurance,
medical and other health and welfare coverage that are made available by the Company or the Bank currently or at any time in the
future during the Term of this Agreement, subject to and on a basis consistent with, the terms, conditions and overall administration
of such plans and arrangements. The Company shall also provide Executive with an annual automobile allowance of Fifteen Thousand
Dollars ($15,000), or such other amount as mutually agreed among the parties, which amount is to be paid in quarterly installments
in advance.

 

    	 	4	 

     

    

 

 4.         CERTAIN EARLY TERMINATIONS OF EMPLOYMENT; PAYMENTS AND BENEFITS.

 

(a)       Termination
of Executive by the Company or the Bank, Not for Cause. If at any time during the Term of Executive’s employment under
this Agreement, the Company and/or the Bank early terminates Executive’s employment (other than a Termination for Cause under
Section 7 or a Termination due to Disability under Section 12), the Bank (i) shall pay to Executive the cash payment specified
in paragraph (c) of this Section 4, below, and (ii) shall provide and pay to Executive those post-termination benefits and payments
specified in paragraph (d) of this Section 4, below. A termination of Executive’s employment by the Company and/or the Bank
pursuant to the foregoing sentence (any such, a “Termination without Cause”) shall be effected by way
of a written Notice of Termination delivered by the Company and/or the Bank to Executive, as defined and subject to the terms and
conditions set forth in Section 8(b) below, which notice, among other things, shall identify the proposed Termination Date, which
date may not be earlier than the date of the notice. The ultimate Termination Date of Executive’s employment shall be the
proposed Termination Date identified in the Notice of Termination, unless prior to such date the parties shall mutually agree in
writing (a) that there will not be any such termination of Executive’s employment under this Section 4(a), or (b) that such
termination will take place but as of some other date that is earlier or later than such proposed Termination Date, in which event
such other date will become the actual Termination Date.

 

(b)       Termination
of Employment by Executive for Good Reason.

 

(i)       Executive’s
Election and Notice. If at any time during the Term of Executive’s employment under this Agreement, there shall occur
any of the specific actions or events, or series of actions or events, that individually or collectively constitute “Good
Reason,” as defined in Section 25 of this Agreement, Executive shall have the right, exercisable by him at any time
within ninety (90) days after he first becomes aware (or reasonably should have become aware) of such occurrence, to elect to terminate
his own employment with the Company and the Bank under this Section 4(b). Such termination (a “Termination for Good
Reason”) shall be communicated to the other parties by way of a prior written Notice of Termination, as defined and
subject to the terms and conditions set forth in Section 8(b) below, delivered by Executive to the Company and the Bank, which
notice, among other things, shall identify with reasonable specificity the action or event, or series of actions or events, constituting
the Good Reason underlying Executive’s election, as well as the proposed Termination Date of his employment, which date may
not be earlier than the thirtieth (30th) day following the date of such notice.

 

(ii)     Possible
Cure. If Executive has elected to terminate his own employment under this Section 4(b) and has delivered a Notice of Termination
to such effect, the Company and/or the Bank, if they have the ability to cure the actions or conditions constituting the Good Reason
cited by Executive in his notice before the proposed Termination Date identified in Executive’s notice (or such later Termination
Date as may be agreed upon by the parties), may individually or jointly elect to effect such a cure. If the Company and/or the
Bank succeed in such cure, then: (A) the proposed Termination for Good Reason by Executive of his own employment under this paragraph
(b) will be deemed ineffective, (B) the mutual obligations, duties and rights of the parties under this Agreement will continue
in effect as though Executive had never attempted to terminate his employment for Good Reason, and (C) neither the Company nor
the Bank shall take any adverse or retaliatory action against the Executive solely as a result of his initial election to terminate
his employment under this Section 4(b).

 

    	 	5	 

     

    

 

(iii)     Consequences
of Termination. If and when a Termination for Good Reason by Executive of his own employment under this paragraph (b) becomes
effective, the Bank (i) shall pay to Executive the cash payment specified in Section 4(c) below, and (ii) shall provide and pay
to Executive the continuing post-termination benefits and payments specified in Section 4(d), below. The Termination Date of such
termination shall be the proposed Termination Date set forth in Executive’s notice of Termination, unless prior to such date
the parties shall mutually agree in writing (a) that there will not be any such termination of Executive’s employment under
this Section 4(b), or (b) that such termination will take place but as of some other date that is earlier or later than such proposed
Termination Date, in which event such other date will become the actual Termination Date.

 

(c)       Cash
Payment. In the event of any Termination without Cause of Executive’s employment under Section 4(a) above, or any Termination
for Good Reason by Executive of his own employment under Section 4(b) above, the Bank shall pay to Executive (or, if Executive
dies after such termination of employment but before such payment, to his beneficiary(ies) or his estate, as the case may be),
within the period following the Termination Date specified below, an amount in cash equal to the sum of: (i) three (3) times Executive’s
Base Salary; plus (ii) an amount equivalent to the Bonus Payment received by, and/or determined to be paid to, Executive with respect
to the year immediately prior to the year in which occurred such termination. The parties hereto further agree that all payments
received by Executive hereunder will not be subject to diminution if Executive, subsequent to such Termination Not for Cause or
Termination for Good Reason, becomes employed elsewhere.

 

The total amount paid to Executive under this
Section 4(c) shall be paid in a single lump sum cash distribution made within ten (10) days following the Termination Date; provided
however, if, at the Termination Date, Executive is a “Specified Employee” of the Company or the Bank,
as defined in Treasury Regulation 1.409-1(i), then, solely to the extent required to avoid penalties under Section 409A of the
Internal Revenue Code (the “Code”), such payment shall be delayed until the first day of the seventh
full month following the Termination Date, or ten (10) days following his earlier death. Such payment shall not be reduced in the
event Executive obtains other employment following such early termination of his employment hereunder.

 

(d)       Other
Post-Termination Benefits. In the event of Executive’s Termination without Cause under Section
4(a), above, or Termination for Good Reason under Section 4(b) above, Executive shall become immediately vested in any outstanding
unvested equity or equity-based awards granted to Executive. 

 

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 5.         VOLUNTARY TERMINATION BY EXECUTIVE OF EMPLOYMENT WITHOUT GOOD REASON.

 

(a)       30
Day Prior Notice. If at any time during the Term of Executive’s employment under this Agreement, Executive elects to
voluntarily terminate his own employment with the Company and the Bank, other than any such early termination that qualifies as
(i) a Termination for Good Reason under Section 4(b), above, or (ii) a termination for Disability or upon Retirement under Section
12, below, Executive shall be obligated to deliver, and shall deliver to each of the Company and the Bank, a prior written Notice
of Termination, as defined and subject to the terms and conditions set forth in Section 8(b), below, which notice, among other
things, shall identify the proposed Termination Date, which may not be earlier than the thirtieth (30th) day nor later
than the forty-fifth (45th) day following the date of the notice.

 

(b)       Payments;
Benefits. In the event of any such voluntary termination of employment by Executive under this Section 5, Executive shall be
entitled to receive from the Company and/or the Bank, as of or after the Termination Date of his employment, any accrued but unpaid
Base Salary payable to Executive as of the Termination Date, a pro rata apportionment of any Bonus Payment that the parties
agree will be paid for the year in which the resignation occurs, as well as any other benefits or rights due to Executive as of
or after the Termination Date under any other compensation or benefit plan, policy or arrangement of the Company and/or the Bank
as in effect on the Termination Date, including any vested benefits or amounts payable thereunder to Executive as a former employee,
in accordance with the terms and conditions of such plans, policies and arrangements, including retirement plans and health and
welfare plan.

 

6.         PAYMENT
TO EXECUTIVE UPON THE OCCURENCE OF A CHANGE IN CONTROL.

 

(a)       Payment
Upon a Change in Control. If a Change in Control, as defined in Section 25, below, shall occur, the Bank shall, within ten
(10) days following the effective time of the Change in Control event, pay and provide to Executive (or if Executive dies prior
to such payment, to his beneficiary or beneficiaries or his estate, as the case may be), in lieu of any cash payments under Section
4(c) above which are payable only in the event of a termination of employment, a lump sum cash payment equal to: (i) three (3)
times Executive’s Base Salary; plus (ii) an amount equivalent to the Bonus Payment received by, and/or determined to be paid
to, Executive with respect to the year immediately prior to the year in which occurred such termination. In the event Executive
also has a Termination without Cause or Termination for Good Reason in connection with or following a Change in Control, Executive
shall not be entitled to a cash severance payment under Section 4(c) of this Agreement. Notwithstanding the foregoing, in the event
Executive has a Termination without Cause or Termination for Good Reason in connection with or following a Change in Control, Executive
shall be entitled to the Post-Termination Benefits set forth in Section 6(b) below.

 

(b)       Post-Termination
Benefits. In the event of a Termination without Cause or a Termination for Good Reason in connection with or following a Change-in-Control,
as defined in Section 25, Executive shall become immediately vested in any outstanding unvested equity or equity-based awards granted
to Executive.

 

7.         TERMINATION
OF EXECUTIVE’S EMPLOYMENT FOR CAUSE.

 

(a)       At
any time during the Term of this Agreement, including after a Change in Control, the Company and/or the Bank may terminate Executive’s
employment hereunder for “Cause,” as defined in Section 25, below. In the event that any termination
under this Section 7 (a “Termination for Cause”) becomes effective, Executive shall not have any rights
to receive, and shall not receive, any compensation or benefits for any period after the Termination Date, including compensation
or benefits that he would otherwise have been entitled to receive after a termination of his employment under any other provisions
of this Agreement, except for any such compensation or benefits that he is entitled to receive as a matter of law.

 

    	 	7	 

     

    

 

(b)       In
order for a Termination for Cause to become effective under this Section 7, each of the following must occur:

 

		(i)	Notice. The Company and/or the Bank must deliver to Executive a written Notice of Termination,
as defined and meeting the requirements set forth in Section 8(b) below, which notice (i) clearly discloses that the Company and/or
the Bank, as applicable, intends to terminate Executive for Cause within the meaning of this Section 7, (ii) sets forth in reasonable
detail the facts and circumstances allegedly constituting such Cause such that Executive has a fair opportunity to understand and
defend himself against such allegations; and (iii) advises Executive of his right to request a hearing, as described in subparagraph
(b)(ii), below, and the date or range of dates for such hearing, if requested.

 

		(ii)	Hearing. The Company and/or the Bank, as applicable, shall provide Executive with an opportunity
to be heard, with assistance of counsel if he so desires, before the Company’s Board and/or the Bank’s Board, as applicable,
at a hearing to be held on a date or within a range of dates identified in the Notice of Termination, which date may not in any
event be earlier than the thirtieth (30th) day after the date of the notice, for the purpose of enabling Executive to
demonstrate, through written and/or verbal rebuttal, that Cause for his termination does not exist. The hearing may be held in
conjunction with a regular or special meeting of such board (or each such board) at which the Executive’s Termination for
Cause will subsequently be evaluated and determined.

 

		(iii)	Final Determination by Board. After the hearing (if there is a hearing), or after a period
of at least thirty (30) days has elapsed after the date of the Notice of Termination (if there is not a hearing), each of the Company’s
Board and the Bank’s Board, acting at a regular or special meeting of such board duly called and held, shall make a final
determination in its reasonable discretion as to whether Cause for the termination of Executive exists and if each of the boards
determine, by the affirmative vote of not less than a majority of the entire membership thereof (excluding Executive), that Cause
for the termination of Executives does exist and that Executive should be terminated for Case, there shall be delivered to Executive
written notice of the final determination of such board or boards that Executive be terminated for Cause and identifying the effective
date of such termination (the Termination Date).

 

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(c)       Without
limiting the foregoing, the Company and/or the Bank, on or after delivery to Executive of the initial Notice of Termination to
Executive, may suspend Executive, with or without pay (but with all benefits continued), for a period not to exceed forty (40)
days, and such suspension shall not constitute either a Termination without Cause or a Termination for Good Reason of Executive
under the Agreement. In the event that the Executive is suspended and it is ultimately determined that the Executive should not
be terminated for Cause, then the Executive shall immediately resume employment with the Company and the Bank in accordance with
the terms of this Agreement, and if the Executive’s suspension was without pay, then all suspended pay shall be paid to the
Executive with his first paycheck after the suspension is lifted. To the extent possible, the Company and the Bank shall take all
necessary actions to either not disclose the suspension, or if disclosure is required, that such disclosure be made in a manner
that is reasonably determined to not adversely affect the personal and business reputation of the Executive.

 

8.         CERTAIN
NOTICES

 

(a)       Non-Renewal
Notice. Any Non-Renewal Notice delivered by the Company and/or the Bank to Executive under Section 2(b) of this Agreement shall
be in writing. Such notice shall state that the Company’s Board and/or the Bank’s Board (as appropriate) has elected
to discontinue the automatic extension of the Term of Executive’s employment under Section 2(b), by action taken by such
board(s), and shall identify the date on which such board or each such board acted, and that such date (or if there is more than
one such date, the later of such dates) shall be deemed the date of non-renewal as well as the date of the Non-Renewal Notice.
Any notice given under this Section 8(a) may be delivered to Executive (i) in person, by an agent or representative of the Company
and/or the Bank, (ii) by paid courier, (iii) by e-mail (in which there must be a confirmation that the email was received and read),
or (iv) by U.S. mail, return receipt requested, in each case, at or addressed to the residence address of Executive (or if by email,
the email address of Executive) as set forth at such time on the Company’s records;

 

(b)       Notice
of Termination. In the event of any early termination of Executive’s employment under this Agreement, including without
limitation under any of Sections 4, 5 and 7, the notice of termination (a “Notice of Termination”) required
to be delivered by the party(ies) electing to terminate Executive’s employment to each of the other party(ies) hereto shall
be in writing, and shall identify (i) the specific termination provision in this Agreement relied upon by the terminating party(ies),
(ii) the terminating party(ies)’ proposed Termination Date for such termination, and (iii) the date of the notice, determined
as provided below. The Notice of Termination shall also set forth such other information, if any, as may be required in the particular
termination provision under which the election is being made. The Notice of Termination must be delivered in person by the terminating
party (or one of the terminating parties, if there is more than one), or by a representative or agent of any such party, to each
of the other party(ies), at the address of the particular party (which shall be the street address of the main office of the Bank
on such date, and for Executive, the street address of his principal residence on such date). The date of any Notice of Termination
is the date such notice is delivered to the last party entitled to such delivery to whom delivery is made. Such date of delivery
shall be set forth on the notice itself, or shall be communicated by the terminating party to each of the other parties by other
means, including email or other electronic means of communication (in which case there must be a confirmation that the email or
other electronic means of communication was received and read), on or as soon as possible after the date of the notice.

 

    	 	9	 

     

    

 

(c)       Upon
delivery by any party to any other party of a Notice of Termination with respect to any early termination of Executive’s
employment under this Agreement, the ability of any other party to early terminate Executive’s employment hereunder shall
be suspended until the attempt by the party giving the earlier Notice of Termination to achieve such termination is abandoned or
fails, provided however, that no provision in this Agreement, including this Section 8(c), will prevent, suspend, or in any way
delay or interfere with any determination by the Company and/or the Bank to notify Executive that he is being terminated for Cause
and to proceed with all actions required in connection with such termination, which determination, once reached and communicated
to Executive by way of a Notice of Termination, will preempt and preclude any other attempt by any party, including Executive,
to early terminate his employment, until the for Cause termination proceeding has been completed or abandoned.

 

9.         REDUCTION
OF PAYMENTS TO AVOID EXCESS PARACHUTE PAYMENT.

 

Notwithstanding anything
herein to the contrary contained in this Agreement or in any other agreement between the Company and/or the Bank and Executive
or any plan or policy of or binding upon the Company and/or the Bank, in the event that the aggregate payments or benefits made
or to be made to Executive under this Agreement, in connection with a “change of control” as defined under Section
280G of the Internal Revenue Code of 1986, as amended (the “Code”), when combined with any other payments or
benefits made or permitted, or required to be made or permitted, to Executive under any other plan, agreement or arrangement of
the Company and/or the Bank or any of their subsidiaries or affiliates, should cause or have caused Executive to be obligated to
pay or to become liable for any Federal excise taxes under Code Section 4999(a) and/or any state or local excise taxes attributable
to payments that qualify as “excess parachute payments” under Code Section 280G, as determined by an accounting or
law firm (“Firm”) regularly utilized by the Company and/or the Bank, then such payments payable under this Agreement
shall be reduced to avoid such “excess parachute payment,” as defined in Code Section 280G(b)(1). The manner of reduction
shall be determined by the Company, taking into account any requests of the Executive regarding which parachute payments shall
be reduced, unless such request would give rise to a violation of Code Section 409A or other applicable law. Nothing in this Section
9 shall result in the reduction of any payments or benefits to which Executive may be entitled upon termination of employment and/or
a Change in Control other than as specified in this Section 9, or a reduction in benefits payable under this Agreement below zero.

 

10.      POST-TERMINATION
OBLIGATIONS.

 

Executive
shall, upon reasonable notice, furnish to the Company and/or the Bank such information and assistance as may reasonably be required
by such entity(ies) in connection with any litigation to which they or any of their subsidiaries is, or may become, a party. Executive
also agrees, upon prior reasonable notice and reimbursement by the Company and/or the Bank of reasonable costs and expenses of
Executive, including for his time, to cooperate with the Company, the Bank or their subsidiaries in any legal matters that may
require Executive’s participation and/or assistance during the twenty-four (24) month period following the Expiration Date
of Executive’s employment under this Agreement or any earlier termination of such employment. Executive expressly agrees
to provide reasonable assistance (including testimony where appropriate) in such matters. The Company and/or the Bank will only
request such assistance from Executive if such assistance is reasonably necessary. 

 

    	 	10	 

     

    

 

 11.       NON-SOLICITATION, NON-DISCLOSURE AND NON-DISPARAGEMENT.

 

(a)       Non-Solicitation.
Executive recognizes that the business of the Company and the Bank is highly competitive, and therefore acknowledges and agrees
that at all times while employed by the Company and/or the Bank and, in the event of his voluntary termination of employment without
Good Reason under Section 5 (only), for a period of one (1) year following the date of the Executive’s termination of such
employment, Executive shall not personally, directly or indirectly, individually or together with any other person, as owner, shareholder,
investor, member, partner, proprietor, principal, director, officer, executive, manager, agent, representative, independent contractor,
consultant or otherwise induce, request or attempt to influence any officer of the Company or the Bank to terminate his or her
employment with the Company or the Bank. This Section 11(a) shall not apply to hiring or recruitment efforts that are either initially
directed to the public without the direct or indirect involvement by the Executive (e.g., through a recruiter or a recruiting website).

 

(b)       Non-Disclosure.
Executive recognizes and acknowledges that his knowledge of the business activities and plans for business activities of the Company,
the Bank and their subsidiaries, as it may exist from time to time, is a valuable, special and unique asset of the business of
the Company, the Bank and their subsidiaries. Executive will not, for a period of three (3) years following expiration or termination
of his employment hereunder, disclose any knowledge of the past, present, planned or considered business activities of the Company,
the Bank and their subsidiaries to any person, firm, corporation or other entity for any reason or purpose whatsoever, unless expressly
authorized to do so by the Company’s Board or the Bank’s Board or as required by law. Notwithstanding the foregoing,
Executive may disclose any knowledge of banking, financial and/or economic principles, concepts or ideas which are not solely and
exclusively derived from the business plans and activities of the Company, the Bank or their subsidiaries. In the event of a breach
or threatened breach by Executive of the provisions of this Section 11(b), the Company and/or the Bank will be entitled to an injunction
restraining Executive from disclosing, in whole or in part, knowledge of the past, present, planned or considered business activities
of the Company, the Bank or their subsidiaries or from rendering any services to any person, firm, corporation or other entity
to whom such knowledge, in whole or in part, has been disclosed or is threatened to be disclosed. Nothing herein will be construed
as prohibiting the Company and/or the Bank from pursuing any other remedies available to the Company and/or the Bank for such breach
or threatened breach of this Section 11(b), including the recovery of damages from Executive.

 

(c)       Non-Disparagement.
Executive agrees that, during the Term and thereafter, he will not, directly or indirectly, alone or in conjunction with any other
party, make statements to customers or suppliers of the Company and/or the Bank or to other members of the public that are in any
way disparaging or negative towards the Company or the Bank, or the products or services of either, or the Company’s or the
Bank’s representatives, Directors, or employees. The Company and the Bank agree that, during the Term and thereafter, they
will not, directly or indirectly, alone or in conjunction with any other party, make statements to customers or suppliers of the
Company and/or the Bank or to other members of the public that are in any way disparaging or negative towards the Executive.

 

    	 	11	 

     

    

 

(d)       Remedies.
Executive acknowledges and agrees that his obligations under this Section 11 are of a special and unique nature and that a failure
to perform any such obligation or a violation of any such obligation would cause irreparable harm to the Company and/or the Bank,
the amount of which cannot be accurately compensated for in damages by an action at law. In the event of a breach by the Executive
of any of the provisions of this Section 11, the Company and/or the Bank shall be entitled to an injunction restraining the Executive
from such breach. Nothing in this Section shall be construed as prohibiting the Company and/or the Bank from pursuing any other
remedies available for any breach of this Section 11.

 

12.      DEATH,
DISABILITY OR RETIREMENT. 

 

(a)       Death.
This Agreement shall terminate upon Executive’s death, and within thirty days of Executive’s death, the Company
shall pay to Executive’s estate (at the direction of his executor or administrator), as the case may be, the sum of: (a)
the amount of any earned but unpaid Base Salary and benefits; (b) (i) three (3) times Executive’s Base Salary; plus (ii)
an amount equivalent to the Bonus Payment received by, and/or determined to be paid to, Executive with respect to the year immediately
prior to the year in which Executive’s death occurred. In addition, Executive shall become immediately vested in any outstanding
unvested equity or equity-related awards granted to Executive. Amounts payable under this Section 12(a) shall be paid pursuant
to a life insurance policy or policies acquired and paid for by the Company on the life of the Executive, if and to the extent
the Executive is insurable (otherwise from Company assets). The Executive shall cooperate in the acquisition of such life insurance
policy(ies), including disclosing requested information and submitting to physical examinations.

 

		(b)	Disability.

 

		(i)	Payments on Short Term Disability. In the event that Executive suffers any disability during
the Term of this Agreement, as “disability” is defined in the Bank’s short-term disability insurance policy (“Disability”),
and all subsequent renewal and/or replacement policies, then the Company shall continue to compensate Executive in the full amount
owing to Executive under this Agreement, as if Executive had suffered no such Disability, through the entire period covered by
such short-term disability insurance policy or until Executive no longer suffers from the Disability. Executive shall pay to the
Company any and all amounts he receives as short-term disability payments from the short term disability insurance policy and all
subsequent renewal and replacement policies.

 

		(ii)	Payments on Long-Term Disability. In the event the Executive becomes totally disabled, as
the term is defined in the Bank’s long-term disability insurance policy (“Totally Disabled”), and
all subsequent renewal and/or replacement policies, then the Company or the Bank shall continue to compensate Executive in the
full amount owing to Executive under this Agreement, as if Executive had not become Totally Disabled, for a period of thirty (30)
days commencing on the date on which Executive is determined to be Totally Disabled. Within thirty (30) days of the date on which
Executive is determined to be Totally Disabled, Executive shall receive from the Company and/or the Bank a lump sum cash payment
equal to: three (3) times Executive’s Base Salary; plus (ii) an amount equivalent to the Bonus Payment received by, and/or
determined to be paid to, Executive with respect to the year immediately prior to the year in which Executive becomes Totally Disabled.
In such event, Executive shall pay to the Company and/or the Bank any and all amounts he receives as long-term disability payments
from the provider of the long-term disability insurance policy pursuant to said long-term disability insurance policy and all subsequent
renewal and/or replacement policies. In addition, Executive shall become immediately vested in any outstanding unvested equity
awards granted to Executive upon the determination that Executive is Totally Disabled.

 

    	 	12	 

     

    

 

		(iii)	Termination of Employment. In the event Executive is determined to be Totally Disabled,
Executive’s obligation to perform services under this Agreement will terminate.

 

(c)       Retirement.
If Executive has attained retirement or early retirement age under any tax-qualified retirement plan of the Company and/or the
Bank in which Executive is a covered employee (“Retirement Plan”), Executive may elect to retire under such Retirement
Plan, in the manner and subject to the procedures specified in such plan, and in such event, Executive shall be entitled to such
benefits and shall receive such payments as are provided under such Retirement Plan and under any other tax-qualified or nonqualified
retirement pension, severance or other similar plan then maintained by the Company and/or the Bank in which Executive is then a
covered employee or otherwise entitled to participate. The termination of Executive’s employment incident to such retirement
will not be deemed an early termination of Executive’s employment under any of Sections 4, 5 or 7 of this Agreement.

 

13.       EFFECT
ON PRIOR AGREEMENTS AND EXISTING BENEFIT PLANS.

 

This Agreement contains the entire understanding
between the parties hereto regarding the issues addressed herein, and supersedes any prior employment or change in control agreement
between the Company and/or the Bank (or their predecessors) and Executive, 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.

 

14.       NO
ATTACHMENT.

 

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

 

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

 

    	 	13	 

     

    

 

15.       MODIFICATION
AND WAIVER.

 

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

 

(b)       Waivers.
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.

 

16.       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 remaining
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.

 

17.       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.

 

18.       GOVERNING
LAW; JURISDICTION AND VENUE.

 

(a)       This
Agreement shall be governed by the laws of the State of New York without regard to principles of conflicts of law of the State
of New York and applicable federal law.

 

(b)       Any
and all disputes arising out of this Agreement shall be adjudicated by the Supreme Court of the State of New York, New York County.
Furthermore, the Supreme Court of the State of New York, New York County shall exclusively have and exercise personal jurisdiction
over the parties hereto concerning any and all disputes arising out of this Agreement and the parties hereto unconditionally submit
to such jurisdiction and the exclusivity thereof.

 

 19.       ATTORNEY’S FEES.

 

All reasonable legal fees paid or incurred
by Executive pursuant to any dispute or question of interpretation relating to this Agreement shall be paid or reimbursed by the
Company and/or the Bank if and only if Executive is successful pursuant to a legal judgment, arbitration or settlement. Such payment
or reimbursement shall occur no later than two and one-half (21⁄2) months after the dispute is settled or resolved in Executive’s
favor. If the Executive does not prevail in such dispute or question of interpretation relating to this Agreement, then each party
shall be responsible for the payment of such parties own legal fees and expenses.

 

    	 	14	 

     

    

 

20.       NO
WAIVERS.

 

The failure to enforce at any time any of the
provisions of this Agreement, or to require at any time performance by any other party of any of the provisions hereof shall in
no way be construed to be a waiver of such provision, nor in any way to affect the validity of this Agreement or any part hereof,
or the right of any party thereafter to enforce each and every provision in accordance herewith.

 

21.       INDEMNIFICATION.

 

The Company and/or the Bank shall provide Executive
(including his heirs, executors and administrators) with coverage under a standard directors’ and officers’ liability
insurance policy at the expense of the Company and/or the Bank, and each of the Company and the Bank shall indemnify Executive
(and his heirs, executors and administrators) to the fullest extent permitted under applicable law 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 a director or officer of the Company or the Bank, as applicable (whether or not he continues to be such a director
or officer at the time of incurring such expenses or liabilities), such expenses and liabilities to include, but not be limited
to, judgments, court costs, attorneys’ fees and the costs of reasonable settlements.

 

22.       SUCCESSORS
AND ASSIGNS.

 

The Company and/or the Bank shall require any
successor or assignee, whether direct or indirect, by purchase, merger, consolidation or otherwise, to all or substantially all
of the business or assets of the Company and/or the Bank, expressly and unconditionally to assume and agree to perform the Company’s
and/or the Bank’s obligations under this Agreement, in the same manner and to the same extent that the Company and/or the
Bank would be required to perform if no such succession or assignment had taken place. Failure of any successor or assignee of
the Company or the Bank, whether pursuant to a Change in Control or otherwise, to assume the Agreement shall be deemed to be a
material breach of this Agreement, in which case payments shall be made to the Executive pursuant to Section 6 (reduced by any
payments previously made pursuant to that Section).

 

23.       SUBJECT
TO APPLICABLE LAW.

 

Any payments made or benefits provided by the
Company and/or the Bank to Executive pursuant to this Agreement, or otherwise, and any rights or obligations related to such payments
or benefits, are subject to and conditioned upon compliance with applicable law, including but not limited to 12 U.S.C. §§371c,
371c-1 and 12 C.F.R. Part 223 promulgated thereunder, and 12 U.S.C. §1828(k) and 12 C.F.R. Part 359 promulgated thereunder.

 

    	 	15	 

     

    

 

24.       SECTION
409A COMPLIANCE.

 

The parties intend that all provisions of this
Agreement shall either be exempt from or comply with the requirements of Code Section 409A. For purposes of this Agreement, “termination,”
“termination date” and “terminate” when used in the context of termination of employment shall mean a “separation
from service” with the Company and its affiliates (i.e., generally an entity 50% or more of which is owned or controlled
by the Company), as such term is defined in Treasury Regulation Section 1.409A-1(h) (provided, that the reasonably anticipated
reduced level of bona fide services, if any, to be performed by Executive after such separation from service shall be less than
50 percent of the average level of bona fide services provided to the Company and its affiliates by Executive in the immediately
preceding 36 month period). Nothing in this Agreement shall be interpreted to permit accelerated payment or further deferral of
nonqualified deferred compensation, as defined in Code Section 409A, or any other payment or further deferral in violation of the
requirements of Code Section 409A. Executive does not have any right to make any election regarding the time or form of payment
due under this Agreement. Expenses and reimbursement of expenses will be paid by the Company and/or the Bank consistent with their
generally applicable policies, and in any event no later than the end of the calendar year following the calendar year in which
the expenses are incurred. With respect to reimbursements that constitute taxable income to Executive, no such reimbursements or
expenses eligible for reimbursement in any calendar year shall in any way affect the expenses eligible for reimbursement in any
other calendar year and Executive’s right to reimbursement shall not be subject to liquidation in exchange for any other
benefit. No provision of this Agreement shall be operative to the extent that it will result in the imposition of the additional
tax described in Code Section 409A(a)(1)(B)(i)(II) and the parties agree to revise the Agreement as necessary to comply with Code
Section 409A or an exemption therefrom and fulfill the purpose of the voided provision, or to comply with any available correction
program that would eliminate or mitigate potential sanctions under Code Section 409A. No provision of this Agreement shall be interpreted
or construed to transfer any liability for failure to comply with the requirements of Code Section 409A from Executive or any other
individual to the Company or any of its respective affiliates, employees or agents. All taxes associated with payments made to
Executive pursuant to this Agreement, including any liability imposed under Code Section 409A, shall be borne by Executive.

 

25.       CERTAIN
DEFINED TERMS.

 

For purposes of this Agreement, the following
capitalized terms shall have the meanings given to each below

 

(a)       “Cause.”
For purposes of any termination of Executive's employment hereunder for “Cause,” Cause shall be deemed to exist if
Executive:

 

		(i)	is convicted of any act of fraud, larceny, misappropriation of funds or embezzlement or of a felony
involving securities or banking law; or

 

		(ii)	is disqualified to serve as a senior officer of the Company or the Bank by a bank regulatory agency;
or

 

		(iii)	has breached any of Executive’s covenants contained herein.

 

For purposes of this definition of
“Cause,” no act, or failure to act, on the part of Executive shall be deemed “willful” unless done, or
omitted to be done, by Executive not in good faith and without reasonable belief that Executive’s action or omission was
in the best interests of the Company or the Bank.

 

    	 	16	 

     

    

 

(b)       “Change-in-Control.”
For purposes of this Agreement, a “Change in Control” shall mean the first to occur of any of the following events:

 

		(i)	A change in the composition of the Board of the Company occurring within a rolling two-year period
commencing on the Commencement Date and each annual anniversary thereafter, as a result of which fewer than a majority of the directors
are Incumbent Directors. “Incumbent Directors” refers to the persons who were directors of either the
Bank or the Company immediately before the beginning of such two-year period commencing on the Commencement Date; provided that
any director who was not a director as of the Commencement Date shall be deemed to be an Incumbent Director if that director was
elected to such board of directors by, or on the recommendation of or with the approval of, at least two-thirds (2/3) of the
directors who then qualified as Incumbent Directors; and provided further that no director whose initial assumption of office is
in connection with an actual or threatened election contest (relating to the election of directors) shall be deemed to be an Incumbent
Director;

 

		(ii)	The Board of Directors of the Company or the Bank effect a merger or consolidation of the Company
or the Bank with any other corporation or bank, other than a merger or consolidation in which persons constituting a majority of
the board of directors of the corporation or the bank resulting from the merger or consolidation are Incumbent Directors;

 

		(iii)	The Company or the Bank sells to any one person, or more than one person acting as a group (as
determined under Code Section 409A) assets of the Company or the Bank that have a total fair market value equal to more than forty
percent (40%) of the total gross fair market value of all of the assets of the corporation immediately before such disposition
or related dispositions, where “gross fair market value” means the value of the assets of the corporation, or the value
of the assets being disposed of, determined without regard to any liabilities associated with such assets); or

 

		(iv)	The Company or the Bank converts to an entity with publicly traded equity ownership, other than
a conversion in which persons constituting a majority of the board of directors of the resulting entity are Incumbent Directors.

 

Notwithstanding anything herein to the contrary,
this definition of Change in Control will conform to the requirements of Code Section 409A and any provision in this definition
inconsistent therewith will be null and void.

 

    	 	17	 

     

    

 

(c)       “Good
Reason.” For purposes of this Agreement, “Good Reason” shall mean the occurrence during the Term of Executive’s
employment under this Agreement of any one or more of the following actions or events, or series of actions or events, unless the
same shall have been expressly consented to, in advance, by Executive in writing: (A) failure by the Company’s Board to elect
or re-elect or appoint or re-appoint Executive as President and Chief Executive Officer of the Company, or failure by the Bank’s
Board to elect or re-elect, or approve or re-approve Executive as President and Chief Executive Officer of the Bank, in connection
with any annual or other election or appointment by the Company or the Bank of their senior officers for an upcoming year or period
(the foregoing provisions shall apply equally to the failure by the applicable board of directors to appoint or re-appoint or to
elect or re-elect Executive to the position of President and Chief Executive Officer of a successor to the Company or Bank); (B)
any material diminution in Executive’s functions, duties or responsibilities with the Company, the Bank or their subsidiaries,
the general effect of which would cause Executive’s position to become one of lesser responsibility, importance or scope
from the position and attributes thereof described in Section 1 of this Agreement; (C) relocation of Executive’s principal
place of employment to any location more than fifteen (15) miles radius from Executive's principal place of employment on the Commencement
Date of this Agreement, unless the distance in miles between Executive’s principal residence and his new principal place
of employment following such relocation is less than the distance in miles between Executive’s principal residence and his
principal place of employment immediately prior to such relocation; (D) the completion of any liquidation or dissolution of the
Company or the Bank, other than a liquidation or dissolution that is caused by a reorganization that does not affect the status
of the Executive; or (E) any material breach of this Agreement by the Company and/or the Bank.

 

26.       JOINT
PERFORMANCE GUARANTEE; SOURCE OF PAYMENTS.

 

The Company unconditionally agrees to pay and
provide to Executive all amounts and benefits due hereunder to Executive, including amounts and benefits specifically required
to be paid and provided by the Bank, if such amounts are not timely paid or provided by the Bank, for any reason or no reason.
The Bank unconditionally agrees to pay and provide to Executive all amounts and benefits due hereunder to Executive, including
amounts and benefits specifically required to be paid and provided by the Company, if such amounts are not timely paid or provided
by the Company, for any reason or no reason. All payments provided in this Agreement shall be timely paid in cash or check from
the general funds of the payor. 

 

    	 	18	 

     

    

 

SIGNATURES

 

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

 

	ATTEST:	 	METROPOLITAN BANK HOLDING CORPORATION	 
	 	 	 	 
	/s/ Sangeeta Kishore	 	/s/ David M. Gavrin	 
	Secretary	 	David M. Gavrin	 
	 	 	For the Entire Board of Directors	 
	 	 	 	 
	ATTEST:	 	METROPOLITAN COMMERCIAL BANK	 
	 	 	 	 
	/s/ Sangeeta Kishore	 	/s/ David M. Gavrin	 
	Secretary	 	David M. Gavrin	 
	 	 	For the Entire Board of Directors	 
	 	 	 	 
	WITNESS:	 	EXECUTIVE:	 
	 	 	 	 
	/s/ Sangeeta Kishore	 	/s/ Mark R. DeFazio	 
	Secretary	 	Mark R. DeFazio	 

 

    	 	19Exhibit
10.3

 

CHANGE
OF CONTROL AGREEMENT

 

THIS
CHANGE OF CONTROL AGREEMENT (the
“Agreement”) is made
as of May 12, 2017 by and between METROPOLITAN
COMMERICAL BANK (the “Bank”), a wholly owned subsidiary of Metropolitan Bank Holding Corporation, a New York corporation
(“MBHC”) and SANGEETA KISHORE, a natural person residing at 226 Portside Drive, Edgewater, New Jersey 06020 (“Executive”).

 

WHEREAS,
effective as of the date hereof, the Bank desires to provide Executive with certain financial assurances in the event
of a Change of Control (as hereinafter defined) of the Bank.

 

NOW
THEREFORE, in consideration of the promises and mutual agreements made herein, and intending to be legally bound hereby,
the Bank and Executive agree as follows:

 

1.            Definitions.
For purposes of this Agreement, the following term shall have the meaning indicated below:

 

“Change
of Control” of the Bank shall be deemed to have occurred upon the acquisition, directly or indirectly, by any
person of the beneficial ownership of more than fifty percent (50%) of the voting common stock of MBHC or the Bank, whether by
merger, consolidation, sale of common stock or other corporate business combination.

 

Notwithstanding
the foregoing, the term “Change of Control” shall not include (i) a transaction the sole purpose of which is to change
the state of MBHC’s or the Bank’s incorporation, or (ii) a transaction the sole purpose of which is to make an initial public
offering of the stock of MBHC or the Bank.

 

2.           Change
of Control Payment.

 

(a)          Subject
to the provisions of Section 2(b) below, if, within the one (1) year period following the consummation of a Change of Control,
(i) the employment of the Executive is terminated other than for Cause; or (ii) there is a material diminution in the Executive’s
title, duties or responsibilities, then, within forty five (45) days following the termination of employment, or the date of the
Executive’s written notice to the Bank specifying the facts relating to the diminution in title, duties or responsibilities,
as the case may be, the Executive shall receive a one time payment (the “CoC
Payment”) equal to one (1) times the Employee’s then current annual base salary.

 

(b)          Executive
shall only be eligible to receive the CoC Payment if the Executive is currently employed by the Bank as of the date of the Change
of Control.

 

3.            Representations
and Warranties. Each of the parties hereto represents and warrants to the other that it has full power and authority
to enter into this Agreement.

 

4.            Non-Solicitation.
The Executive covenants and agrees that while employed and during the one (1) year period immediately following the
effective date of any employment expiration or termination for any reason, the Executive shall observe, and be subject to, the
following restrictions:

 

     

     

    

 

(a)          The
Executive will not in any way, directly or indirectly, on the Executive’s own behalf, or on behalf of, or in
conjunction with, any other person, limited liability company partnership, firm, corporation or other entity, solicit,
divert, take away, or attempt to take away, any person, limited liability company, partnership, firm, corporation or other
entity (or their business or patronage) that has been a customer of the Bank or its subsidiaries or affiliates within the
prior two (2) year period; and

 

(b)          The
Executive will not in any way, directly or indirectly, on the Executive’s own behalf, or on behalf of, or in
conjunction with, any other person, limited liability company, partnership, firm, corporation or other entity, solicit,
entice, hire, employ, or endeavor to employ, any employees, consultants, or independent contractors of the Bank or its
subsidiaries or affiliates or anyone who is currently an employee, consultant or independent contractor of the Bank or its
subsidiaries or affiliates as of the date of the Executive’s termination of employment

 

5.            Confidential
Information.

 

(a)          Both
during and after the term of this Agreement, the Executive agrees not to use, directly or indirectly, any Confidential Information
(as defined below) for any purpose other than to perform her duties hereunder. The Executive shall undertake to treat Confidential
Information in the strictest confidence and further agrees that she shall prevent disclosure or availability of the Confidential
Information to any unauthorized persons or entities.

 

(b)          Notwithstanding
the foregoing, the Executive may not be held criminally or civilly liable under any federal or state trade secret law for the disclosure
of a trade secret that: (a) is made (i) in confidence to a federal, state, or local government official, either directly or indirectly,
or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (b) is made in
a complaint or other document that is filed under seal in a lawsuit or other proceeding. In addition, if the Executive files a
lawsuit for retaliation for reporting a suspected violation of law the Executive may disclose the Bank’s trade secrets to the attorney
and use the trade secret information in the court proceeding if the Executive: (a) files any document containing the trade secret
under seal; and (b) does not disclose the trade secret, except pursuant to court order.

 

(c)          For
the purposes of this Agreement, “Confidential
Information” means any and all information (in whatever form) relating to the Bank and its subsidiaries and affiliates
including, without limitation, all information relating to customers, creditors and accounts, and prospective and potential customers,
creditors and accounts the Bank and its subsidiaries and affiliates, as applicable, and the Bank’s and its subsidiaries’
and affiliates’ business methods, systems, plans and strategies, policies, finances, employees, marketing plans, and endeavors,
services, products, processes, know-how, designs, developments, techniques, formulas, methods, improvements, intellectual property,
and source and object codes, programs; provided, however,
that Confidential Information shall not include any information which (i) before or after disclosure to the Executive is in the
public domain generally; or (ii) is required to be disclosed pursuant to any law or applicable regulation or any order of any
court or pursuant to any direction, request, or requirement of any governmental authority; provided,
that the Executive (A) promptly notifies the Bank of the existence, terms and circumstances surrounding such requirement or request,
(B) consults with the Bank regarding legally available steps to resist or narrow such request and (C) only discloses the information
required after complying with Clauses (A) and (B) and exercising commercially reasonable efforts at the Bank’s request and
expense to obtain an order or other reliable assurance that confidential treatment will be accorded to such information.

 

    	 	2	 

     

    

 

6.            Intellectual
Property Rights. The Executive acknowledges and agrees that the results and work product of the Executive’s
services for the Bank, its subsidiaries, and affiliates, including, but not limited to, writings and other works of authorship,
presentations, marketing materials, legal documents, products, services, processes, know-how, designs, developments, techniques,
formulas, methods, improvements, discoveries, inventions, ideas (creative or otherwise), trade secrets, and source and object
codes, programs, resulting from or relating in any way to services performed during the term of this Agreement, whether or not
any of the foregoing are patentable or registerable under copyright or other statutes that were made or conceived or reduced to
practice or learned by the Executive, either alone or jointly with others (collectively, “Inventions”),
shall be “works-made-for-hire” (as defined under U.S. Copyright law), and the Bank (or, if applicable or as directed
by the Bank, any of its subsidiaries or affiliates) shall be deemed the sole and exclusive owner and beneficiary throughout the
universe in perpetuity of any and all trade secret, patent, copyright, and other intellectual property rights (collectively, “Proprietary
Rights”) of whatever nature therein, whether or not now or hereafter known, existing, contemplated, recognized
or developed, with the right to use the same in perpetuity in any manner the Bank determines in its sole discretion, without any
further payment to the Executive whatsoever.

 

7.            Remedy
for Breach. The Executive acknowledges that a violation of Sections 4, 5 or 6 of this Agreement will cause irreparable
damage to the Bank. The Executive consents that any violation shall entitle the Bank, in addition to any other rights or remedies,
it may have, to an immediate injunction, without the need to post bond or prove special damages, restraining any violation. If
any restriction contained in Sections 4, 5 or 6 of this Agreement shall be deemed to be invalid, illegal, or unenforceable by
reason of the extent, duration, or scope thereof, or otherwise, then the court making such determination shall have the right
to modify such extent, duration, scope, or other provisions hereof, and in its modified form such restriction shall then be enforceable
in the manner contemplated hereby.

 

8.            Termination.
The provisions of this Agreement shall terminate on the one (1) year anniversary of the date hereof. Upon the expiration
of the one (1) year period, this Agreement shall be automatically and continuously renewed for successive one (1) year terms unless
at least ninety (90) days prior to the anniversary date of the date of this Agreement, a written notice of termination is provided
by either party to the other that this Agreement will not be renewed.

 

9.            Miscellaneous.

 

(a)          Governing
Law. This Agreement shall be governed by, construed and interpreted in accordance with the law of the State of New York.

 

    	 	3	 

     

    

 

(b)          Severability.
If any provision of this Agreement or the application of such provision to any party or circumstance shall for any reason be declared
by any court of competent jurisdiction to be invalid or unenforceable to any extent, the remainder of this Agreement, or the application
of such provision to any party or circumstance other than those to which it is so determined to be invalid or unenforceable shall
not be affected thereby, and each provision hereof shall be enforced to the fullest extent permitted by law.

 

(c)          Further
Assurances. Each party agrees to cooperate fully with the other party and to execute such further instruments, documents
and agreements, and to give such further written assurances, as may be reasonably requested by the other party to evidence and
reflect the transactions described herein and contemplated hereby and to carry into effect the intent and purposes of this Agreement.

 

(d)          Section
409A. The intent of the parties is that payments and benefits under this Agreement comply with Section 409A of the
Internal Revenue Code of 1986, as amended (the “Code”),
and the regulations and guidance promulgated thereunder (collectively “Section
409A”) and, accordingly, to the maximum extent permitted, this Agreement will be interpreted to be in
compliance therewith. Each payment made to the Executive shall be treated as a separate payment for purposes of Section 409A.
Notwithstanding any provision to the contrary in this Agreement, to the extent that the Executive is a “specified employee”
within the meaning of that term under Section 409A(a)(2)(B) of the Code, then with regard to any payment or the provision of any
benefit that is required to be delayed in compliance with Section 409A(a)(2)(B) of the Code, such payment will not be made or
provided prior to the earlier of (A) the expiration of the six-month period measured from the date of the Executive’s “separation
from service” (as such term is defined under Section 409A, or (B) the date of the Executive’s death (the “Delay
Period”). Upon the expiration of the Delay Period, all payments delayed pursuant to this Section 8(d) (whether
they would have otherwise been payable in a single sum or in installments in the absence of such delay) will be paid or reimbursed
to the Executive in a lump sum, and any remaining payments due under this Agreement will be paid or provided in accordance with
the normal payment dates specified for them herein.

 

(e)          Failure
or Indulgence Not Waiver; Remedies Cumulative. No failure or delay on the part of any party hereto in the exercise of
any right hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation,
covenant or agreement herein, nor shall any single or partial exercise or waiver of any such right preclude other or further exercise
thereof or of any other right. All rights and remedies existing under this Agreement are cumulative to, and not exclusive of, any
rights or remedies otherwise available, whether by contract, at law, in equity or otherwise.

 

(f)          Succession
and Assignment. Neither party may assign, by operation of law or otherwise, this Agreement or any of the rights, interests,
or obligations hereunder or thereunder, without the written consent of the other party.

 

(g)          No
Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person or entity.

 

    	 	4	 

     

    

 

(h)          Entire
Agreement; Amendment. This Agreement supersedes all other prior oral or written agreements between the Bank and Executive
with respect to the matters discussed herein, and this Agreement contains the entire understanding of the parties with respect
to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Bank nor Executive
makes any representation, warranty, covenant or undertaking with respect to such matters. This Agreement may not be modified or
amended except in writing signed by a duly authorized representative of the Bank and Executive. No other act, document, usage or
custom shall be deemed to amend or modify this Agreement.

 

(i)           Notices.
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must
be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; or (ii) one (1) business
day after deposit with an overnight courier service, in each case properly addressed to the party to receive the same. The addresses
for such communications shall be the addresses set forth in the introductory paragraph of this Agreement.

 

(j)
          Employee
at Will. Nothing contained herein shall alter Executive’s status as an at will employee of the Bank. Notwithstanding
any provisions of this Agreement, the Bank may terminate Executive’s employment with the Bank at any time for any reason
or no reason. Nothing in this Agreement shall be construed to grant the Executive any rights other than the right to payment under
Section 2 upon a Change of Control.

 

(ii)
          Counterparts;
Fax. This Agreement may be executed in one (1) or more counterparts (by original, facsimile or electronic signature),
each of which will be considered an original, but all of which together will constitute one and the same instrument.

 

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

 

	 	METROPOLITAN COMMERCIAL BANK.
	 	 
	 	By:	/s/ Mark R. DeFazio
	 	 	Name: Mark R. DeFazio
	 	 	Title:   President & CEO
	 	 	 
	 	 	/s/ Sangeeta Kishore
	 	 	Sangeeta Kishore

 

    	 	5

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