Document:

Arkanova Energy Corp.: Exhibit 10.1 - Filed by newsfilecorp.com

(U.S. ACCREDITED SUBSCRIBERS ONLY)

THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE AND
HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY
NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A
TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

ARKANOVA ENERGY CORPORATION

PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT SHARES

INSTRUCTIONS TO PURCHASER

THIS SUBSCRIPTION FORM is for use by United States
accredited investors.

	1. 	
      REVIEW the entire subscription form.

	 	 
	2. 	
      COMPLETE the information on page 2 of this
      Subscription Agreement.

	 	 
	3. 	
      COMPLETE the U.S. Accredited Investor Status
      Certificate the begins on page 4 to this Subscription Agreement (the
      “Certificate”).

	 	 
	4. 	
      RETURN this Subscription Agreement together with
      the subscription proceeds paid by certified cheque or bank draft to
      Arkanova Energy Corporation at 305 Camp Craft Road, Suite 525, Austin, TX
      78746 Attention: Reginald Denny, CFO. The subscription proceeds may also
      be wired to Arkanova Energy Corporation pursuant to wiring instructions
      that will be provided to the Subscriber upon request.

	 	 
	5. 	
      All other information must be filled in where
      appropriate.

This is Page 2 of 13 pages of a subscription agreement and
related appendices, schedules and forms. Collectively, these pages together are
referred to as the “Subscription Agreement”.

PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT

TO: Arkanova Energy Corporation (the “Issuer”), of 305
Camp Craft Road, Suite 525, Austin, TX 78746.

Subject and pursuant to the terms set out in the Terms on page
3, the General Provisions on pages 5 to 12, and the other schedules and
appendices attached which are hereby incorporated by reference, the undersigned
subscriber (“Subscriber”) hereby irrevocably subscribes for, and on
Closing will purchase from the Issuer, the following securities at the following
price:

	 	2,000,000_ Common Shares of the
      Issuer (each, a “Share”)  	 
	 	 	 
	 	
      US$0.10 per Share for a total purchase price of
      US$200,000 
	 
	 	
       
	 
	 	
      The Subscriber or the Beneficial Purchaser owns, directly
      or indirectly, the following securities of the Issuer: 
	 
	 	 	 
	 	
      [Check if applicable] The Subscriber or the
      Beneficial Purchaser is an insider of the Issuer. 
	 

The Subscriber directs the Issuer to issue, register and
deliver the certificates representing the Shares as follows:

	REGISTRATION INSTRUCTIONS 	 	DELIVERY INSTRUCTIONS
    
	 	 	 
	Pierre Mulacek 	 	  
	Name to appear on certificate 	 	Name and account reference, if applicable 
	 	 	 
	Account reference if applicable 	 	Contact name 
	 	 	 
	Address 	 	Address 
	 	 	 
	  	 	Telephone Number

EXECUTED by the Subscriber this day of
_______________, 2012. By executing this Subscription Agreement, the
Subscriber certifies that the Subscriber and any beneficial purchaser for
whom the Subscriber is acting are resident in the jurisdiction shown as
the “Address of Subscriber” or “Address of Beneficial Purchaser”,
respectively. 

	           
                 EXECUTION BY SUBSCRIBER:
    	 	DETAILS OF BENEFICIAL
      PURCHASER 
	 	 	 
	X 	 	(IF NOT THE SAME AS
      SUBSCRIBER) 
	Signature of individual (if Subscriber is an individual)
    	 	  
	  	 	  
	Authorized signatory (if Subscriber is not an
      individual) 	 	Name of Beneficial Purchaser (please print) 
	Pierre Mulacek 	 	  
	Name of Subscriber (please print) 	 	Address of Beneficial Purchaser (residence) 
	  	 	  
	Name of authorized signatory (please print) 	 	Telephone Number of Beneficial Purchaser 
	  	 	  
	Address of Subscriber 	 	E-mail address of Beneficial Purchaser 
	  	 	  
	Telephone Number of Subscriber 	 	Accepted this day of ______________, 2012 
	  	 	ARKANOVA ENERGY CORPORATION 
	E-mail address of Subscriber 	 	Per: 
	  	 	  
	Social Security/Tax I.D. No. of Subscriber
    	 	Authorized Signatory
  

By signing this acceptance, the Issuer agrees to be bound by
the Terms on pages 3 to 4, the General Provisions on pages 5 to 12, and the
other schedules and appendices incorporated by reference. If funds are
delivered to the Issuer’s lawyers, they are authorized to immediately release
the funds to the Issuer.

Page 3 of 13

TERMS

	
      Reference date of this
      Subscription
Agreement   
	
      December ____, 2012 (the “Agreement Date”).
  

	 
	  The Offering 
	  	
      
	
      

	The Issuer 	
      Arkanova Energy Corporation (the “Issuer”).
  

	  	
      
	
      

	Issue Price 	
      US$0.10 per Share 

	  	
      
	
      

	Offering 	
      There is no minimum or maximum offering. 

	  	
      
	
      

	Selling Jurisdictions 	
      The United States or offshore (the “Selling
      Jurisdictions”). 

	  	
      
	
      

	Exemptions 	
      The offering will be made in accordance with the
      following exemptions: 

	  	
      
	
      

		
      (a) 
	
      the Accredited Investor exemption as provided by
      Regulation D promulgated under the 1933 Act; and 

	  	
      
	
      

		
      (b) 
	
      such other exemptions as may be available the securities
      laws of the Selling Jurisdictions. 

	  	
      
	
      

	  	
      
	
      

	Resale restrictions and legends 	
      The Subscriber acknowledges that any resale of any of the
      Shares will be subject to resale restrictions contained in the securities
      legislation applicable to the Subscriber or proposed transferee. The
      Subscriber acknowledges that none of the Shares have been registered under
      the 1933 Act or the securities laws of any state of the United States. The
      Securities may not be offered or sold in the United States unless
      registered in accordance with federal securities laws and all applicable
      state securities laws or exemptions from such registration requirements
      are available. 

	  	
      
	
      

		
      The Subscriber acknowledges that the certificates
      representing the Shares will bear the following legends: 

	  	
      
	
      

		
      “THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE
      SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY
      STATE AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND,
      ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
      REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
      AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
      REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
      APPLICABLE STATE SECURITIES LAWS.” 

	  	
      
	
      

		
      The Subscriber and any Beneficial Purchaser are advised
      to consult with their own legal counsel or advisors to determine the
      resale restrictions that may be applicable to them. 

	  	
      
	
      

	Closing Date 	
      Payment for, and delivery of the Shares, is scheduled to
      occur on such date as determined by the Company in its sole discretion
      (the “Closing Date”). 

	  	
      
	
      

	  The Issuer 
	 
	Jurisdiction of organization 	
      The Issuer is incorporated under the laws of the State of
      Nevada. 

	  	
      
	
      

	Commissions with Jurisdiction
      
Over the Issuer 	
      The “Commissions with Jurisdiction Over the
      Issuer” is the SEC. 

	  	
      
	
      

	Securities Legislation Applicable to
      
the Issuer 	
      The “Securities Legislation Applicable to the
      Issuer” is the 1933 Act (as defined herein), U.S. Securities Exchange
      Act of 1934. 

End of Terms

Page 4 of 13

U.S. ACCREDITED INVESTOR STATUS CERTIFICATE

Capitalized terms not specifically defined in this certificate
have the meaning ascribed to them in the Subscription Agreement to which this
certificate is attached. In this certificate, dollar amounts are stated in U.S.
dollars.

The Subscriber hereby represents, warrants and certifies to the
Issuer, as an integral part of the attached Subscription Agreement, that he, she
or it is and at Closing will be correctly and in all respects described by the
category or categories set forth directly next to which the Subscriber has
marked below:

	[   ]	(1) 	
      a natural person whose individual net worth, or joint net
      worth with that person’s spouse, at the date of this certificate exceeds
      $1,000,000, excluding the value of the primary residence of such person(s)
      and the related amount of indebtedness secured by the primary residence up
      to its fair market value;

	 	 	 
	[   ]	(2) 	
      a natural person who had an individual income in excess
      of $200,000 in each of the two most recent years or joint income with that
      person’s spouse in excess of $300,000 in each of those years and has a
      reasonable expectation of reaching the same income level in the current
      year;

	 	 	 
	[   ]	(3) 	
      an organization described in Section 501(c)(3) of the
      Internal Revenue Code (United States), a corporation, a
      Massachusetts or similar business trust or partnership, not formed for the
      specific purpose of acquiring the Securities, with total assets in excess
      of $5,000,000;

	 	 	 
	[X]	(4) 	
      a director or executive officer of the Issuer,

	 	 	 
	[   ]	(5) 	
      a trust with total assets in excess of $5,000,000, not
      formed for the specific purpose of acquiring the Shares, whose purchase is
      directed by a sophisticated person as described in Rule 506(b)(2)(ii)
      under the 1933 Act; or

	 	 	 
	[   ]	(6) 	
      an entity in which all of the equity owners satisfy the
      requirements of one or more of the foregoing
categories.

	Dated ___________________, 2012. 	
	 	X
  
	 	Signature of individual (if Subscriber is an
      individual) 
	 	  
	 	Authorized signatory (if Subscriber is not an
      individual) 
	 	  
	 	Pierre Mulacek 
	 	Name of Subscriber (please print) 
	 	  
	 	Name of authorized signatory (please print)
  

Page 5 of 13

GENERAL PROVISIONS

1. DEFINITIONS

1.1 In the Subscription Agreement (including the first (cover)
page, the Terms on page 3, the General Provisions on pages 5 to 12 and the other
schedules and appendices incorporated by reference), the following words have
the following meanings unless otherwise indicated:

	 	(a) 	
      “1933 Act” means the United States Securities Act
      of 1933, as amended;

	 	 	 
	 	(b) 	
      “Applicable Legislation” means the Securities
      Legislation Applicable to the Issuer (as defined on page 3) and all
      legislation incorporated in the definition of this term in other parts of
      the Subscription Agreement, together with the regulations and rules made
      and promulgated under that legislation and all administrative policy
      statements, blanket orders and rulings, notices and other administrative
      directions issued by the Commissions;

	 	 	 
	 	(c) 	
      “Beneficial Purchaser” means a person for whom the
      Subscriber is acting in purchasing the Shares who will be the beneficial
      owner of the Securities within the meaning attributed to it by Rule 13d-3
      adopted by the SEC under the 1934 Act;

	 	 	 
	 	(d) 	
      “Closing” means the completion of the sale and
      purchase of the Shares;

	 	 	 
	 	(e) 	
      “Closing Date” has the meaning assigned in the
      Terms;

	 	 	 
	 	(f) 	
      “Commissions” means the Commissions with
      Jurisdiction over the Issuer (as defined on page 4) and the securities
      commissions incorporated in the definition of this term in other parts of
      the Subscription Agreement;

	 	 	 
	 	(g) 	
      “General Provisions” means those portions of the
      Subscription Agreement headed “General Provisions” and contained on
      pages 5 to 12;

	 	 	 
	 	(h) 	
      “Private Placement” means the offering of the
      Securities on the terms and conditions of this Subscription
    Agreement;

	 	 	 
	 	(i) 	
      “Securities” means the Shares as defined in the
      Terms;

	 	 	 
	 	(j) 	
      “Subscription Agreement” means the first (cover)
      page, the Terms on page 3, the General Provisions on pages 5 to 12 and the
      other schedules and appendices incorporated by reference; and

	 	 	 
	 	(k) 	
      “Terms” means those portions of the Subscription
      Agreement headed “Terms” and contained on page 3.

1.2 In the Subscription Agreement, the following terms have the
meanings defined in Regulation S of the 1933 Act (“Regulation S”):
“Directed Selling Efforts”, “Foreign Issuer”, “Substantial U.S.
Market Interest”, “U.S. Person” and “United States”.

1.3 In the Subscription Agreement, unless otherwise specified,
currencies are indicated in US dollars.

1.4 In the Subscription Agreement, other words and phrases that
are capitalized have the meanings assigned to them in the body hereof.

Page 6 of 13

2. ACKNOWLEDGEMENTS, REPRESENTATIONS AND
WARRANTIES OF SUBSCRIBER

2.1 Acknowledgements concerning Offering

The Subscriber acknowledges (on its own behalf and, if
applicable, on behalf of each Beneficial Purchaser for whom the Subscriber is
contracting hereunder) that:

	 	(a) 	
      the Securities have not been registered under the 1933
      Act, or under any state securities or “blue sky” laws of any state of the
      United States, and are being offered only in a transaction not involving
      any public offering within the meaning of the 1933 Act, and, unless so
      registered, may not be offered or sold in the United States or to U.S.
      Persons, except pursuant to an effective registration statement under the
      1933 Act, or pursuant to an exemption from, or in a transaction not
      subject to, the registration requirements of the 1933 Act, and in each
      case only in accordance with Applicable Legislation;

	 	 	 
	 	(b) 	
      the Issuer will refuse to register any transfer of the
      Securities not made in accordance with the provisions of Regulation S,
      pursuant to an effective registration statement under the 1933 Act or
      pursuant to an available exemption from, or in a transaction not subject
      to, the registration requirements of the 1933 Act;

	 	 	 
	 	(c) 	
      the Subscriber and the Subscriber’s advisor(s) have had a
      reasonable opportunity to ask questions of and receive answers from the
      Issuer regarding the Offering, and to obtain additional information, to
      the extent possessed or obtainable without unreasonable effort or expense,
      necessary to verify the accuracy of the information contained in the
      public information which has been filed by the Issuer with the U.S.
      Securities and Exchange Commission, or any business plan, corporate
      profile or any other document provided to the Subscriber;

	 	 	 
	 	(d) 	
      the books and records of the Issuer are available upon
      reasonable notice for inspection, subject to certain confidentiality
      restrictions, by the Subscriber during reasonable business hours at its
      principal place of business and that all documents, records and books
      pertaining to this Offering have been made available for inspection by the
      Subscriber, the Subscriber’s attorney and/or advisor(s);

	 	 	 
	 	(e) 	
      by execution hereof the Subscriber has waived the need
      for the Issuer to communicate its acceptance of the purchase of the
      Securities pursuant to this Subscription Agreement;

	 	 	 
	 	(f) 	
      the Issuer is entitled to rely on the representations and
      warranties and the statements and answers of the Subscriber contained in
      this Subscription Agreement and in the Certificate, and the Subscriber
      will hold harmless the Issuer from any loss or damage it may suffer as a
      result of the Subscriber’s failure to correctly complete this Subscription
      Agreement or the Certificate;

	 	 	 
	 	(g) 	
      the Subscriber shall indemnify and hold harmless the
      Issuer and, where applicable, its respective directors, officers,
      employees, agents, advisors and shareholders from and against any and all
      loss, liability, claim, damage and expense whatsoever (including, but not
      limited to, any and all fees, costs and expenses whatsoever reasonably
      incurred in investigating, preparing or defending against any claim,
      lawsuit, administrative proceeding or investigation whether commenced or
      threatened) arising out of or based upon any representation or warranty of
      the Subscriber contained herein, the Certificate or in any other document
      furnished by the Subscriber to the Issuer in connection herewith, being
      untrue in any material respect or any breach or failure by the Subscriber
      to comply with any covenant or agreement made by the Subscriber to the
      Issuer in connection therewith;

	 	 	 
	 	(h) 	
      the issuance and sale of the Securities to the Subscriber
      will not be completed if it would be unlawful or if, in the discretion of
      the Issuer acting reasonably, it is not in the best interests of the
      Issuer;

Page 7 of 13

	 	(i) 	
      the Subscriber has been advised to consult its own legal,
      tax and other advisors with respect to the merits and risks of an
      investment in the Securities and with respect to applicable resale
      restrictions and it is solely responsible (and the Issuer is not in any
      way responsible) for compliance with applicable resale
  restrictions;

	 	 	 
	 	(j) 	
      the Securities are not listed on any stock exchange or
      automated dealer quotation system and no representation has been made to
      the Subscriber that any of the Securities will become listed on any stock
      exchange or automated dealer quotation system, except that currently
      certain market makers make market in shares of common stock of the Issuer
      on the Financial Industry Regulatory Authority’s OTC Bulletin
  Board;

	 	 	 
	 	(k) 	
      neither the Commissions or similar regulatory authority
      has reviewed or passed on the merits of the Securities;

	 	 	 
	 	(l) 	
      no documents in connection with this Offering have been
      reviewed by the SEC or any state securities administrators;

	 	 	 
	 	(m) 	
      there is no government or other insurance covering any of
      the Securities; and

	 	 	 
	 	(n) 	
      this Subscription Agreement is not enforceable by the
      Subscriber unless it has been accepted by the Issuer, and the Subscriber
      acknowledges and agrees that the Issuer reserves the right to reject any
      subscription for any reason.

2.2 Representations by the Subscriber

The Subscriber represents and warrants to (on its own behalf
and, if applicable, on behalf of the Beneficial Purchaser from whom the
Subscriber is contracting hereunder) the Issuer that, as at the Agreement Date
and at the Closing:

	 	(a) 	
      the Subscriber and any Beneficial Purchaser are U.S.
      Persons;

	 	 	 
	 	(b) 	
      the Subscriber has received and carefully read this
      Subscription Agreement;

	 	 	 
	 	(c) 	
      the Subscriber has the legal capacity and competence to
      enter into and execute this Subscription Agreement and to take all actions
      required pursuant hereto and, if the Subscriber is an entity, it is duly
      incorporated or organized and validly subsisting under the laws of its
      jurisdiction of incorporation or organization and all necessary approvals
      by its directors, shareholders and others have been obtained to authorize
      execution and performance of this Subscription Agreement on behalf of the
      Subscriber;

	 	 	 
	 	(d) 	
      the Subscriber understands and acknowledges that the
      Securities have not been registered under the 1933 Act or any state
      securities laws and that the sale of the Shares contemplated hereby is
      being made to a limited number of U.S. Accredited Investors in
      transactions not requiring registration under the 1933 Act; accordingly
      the Securities are “restricted securities” within the meaning of Rule
      144(a)(3) under the 1933 Act;

	 	 	 
	 	(e) 	
      the Subscriber acknowledges that the Issuer has not
      registered the offer and sale to the Subscriber of the Securities under
      the 1933 Act and the Subscriber acknowledges that there may be substantial
      restrictions on the transferability of, and that it may not be possible to
      liquidate its investment readily in, the Shares;

	 	 	 
	 	(f) 	
      the Subscriber is a U.S. Accredited Investor and
      acknowledges that it is acquiring the Shares as an investment for its own
      account or for the account of a U.S. Accredited Investor as to which it
      exercises sole investment discretion and not with a view to any resale,
      distribution or other disposition of the Shares in violation of the federal or
      state securities laws of the United States and the Subscriber has
  concurrently executed and delivered the Certificate;

Page 8 of 13

	 	(g) 	
      the Subscriber will only offer, sell or otherwise
      transfer the Securities pursuant to an effective registration statement
      under the 1933 Act or pursuant to an exemption from the registration
      requirements imposed by the 1933 Act and in compliance with applicable
      state Securities Laws (and, in each case where there is no effective
      registration statement, only if an opinion of counsel of recognized
      standing reasonably satisfactory to the Issuer has been provided to the
      Issuer to that effect, if applicable);

	 	 	 
	 	(h) 	
      the Subscriber acknowledges and agrees that the
      Securities will be “restricted securities” within the meaning of Rule
      144(a)(3) under the 1933 Act and will remain “restricted securities”
      notwithstanding any resale within or outside the United States unless the
      sale is completed pursuant to an effective registration statement under
      the 1933 Act or is made in compliance with the exemption from registration
      provided by Rule 144 promulgated under the 1933 Act;

	 	 	 
	 	(i) 	
      the Subscriber understands and agrees that there may be
      material tax consequences to it of an acquisition, holding or disposition
      of the Securities. The Issuer gives no opinion and makes no representation
      with respect to the tax consequences under United States, state, local or
      foreign tax law of the acquisition, holding or disposition of such
      securities, and the Subscriber acknowledges that it is solely responsible
      for determining the tax consequences of its investment;

	 	 	 
	 	(j) 	
      the Subscriber understands that none of the Shares may be
      sold or transferred in the United States or to a U.S. Person unless an
      exemption is available from the registration requirements of the 1933 Act
      and any other applicable Securities Laws;

	 	 	 
	 	(k) 	
      the Subscriber understands that if it decides to offer,
      sell, pledge or otherwise transfer the Shares, such securities may be
      offered, sold or otherwise transferred only: (A) to the Issuer; (B)
      pursuant to an effective registration statement under the 1933 Act, (C) in
      accordance with Rule 144 under the 1933 Act, if available, and in
      compliance with applicable state Securities Laws, (D) in accordance with
      the provisions of Regulation S, if available, or (E) in a transaction that
      does not otherwise require registration under the 1933 Act or any other
      applicable Securities Laws and in the case of an offer or sale pursuant to
      an exemption from the registration requirements of the 1933 Act, the
      Issuer may require, as a condition of granting its consent, a legal
      opinion of a firm reasonably acceptable to the Issuer confirming that the
      sale is not subject to the registration requirements of the 1933
    Act;

	 	 	 
	 	(l) 	
      the purchase of the Shares has not been made through or
      as a result of any general solicitation or general advertising (as such
      terms are defined in Rule 502(c) of Regulation D), any press release, or
      any seminar or meeting whose attendees have been invited by general
      solicitation or general advertising and the distribution of the Shares has
      not been accompanied by any advertisement, including, without limitation,
      in printed public media, radio, television or telecommunications,
      including electronic display or as part of a general
solicitation

	 	 	 
	 	(m) 	
      the Subscriber and any Beneficial Purchaser are aware
      that an investment in the Issuer is speculative and involves certain
      risks, including the possible loss of the investment;

	 	 	 
	 	(n) 	
      the decision to execute this Subscription Agreement and
      purchase the Securities agreed to be purchased hereunder has not been
      based upon any oral or written representation as to fact or otherwise made
      by or on behalf of the Issuer and such decision is based entirely upon a
      review of any public information which has been filed by the Issuer with
      the U.S. Securities and Exchange Commission in compliance, or intended
      compliance, with applicable securities
legislation;

Page 9 of 13

	 	(o) 	
      the entering into of this Subscription Agreement and the
      transactions contemplated hereby do not result in the violation of any of
      the terms and provisions of any law applicable to, or, if applicable, the
      constating documents of, the Subscriber, or of any agreement, written or
      oral, to which the Subscriber may be a party or by which the Subscriber is
      or may be bound;

	 	 	 	 
	 	(p) 	
      the Subscriber has duly executed and delivered this
      Subscription Agreement and it constitutes a valid and binding agreement of
      the Subscriber enforceable against the Subscriber;

	 	 	 	 
	 	(q) 	
      the Subscriber and any Beneficial Purchaser have the
      requisite knowledge and experience in financial and business matters as to
      be capable of evaluating the merits and risks of the investment in the
      Securities and the Issuer, and the Subscriber is providing evidence of
      such knowledge and experience in these matters through the information
      requested in the Certificate;

	 	 	 	 
	 	(r) 	
      the Subscriber understands and agrees that the Issuer and
      others will rely upon the truth and accuracy of the acknowledgements,
      representations and agreements contained in this Subscription Agreement,
      and agrees that if any of such acknowledgements, representations and
      agreements are no longer accurate or have been breached, the Subscriber
      shall promptly notify the Issuer;

	 	 	 	 
	 	(s) 	
      all information contained in the Certificate is complete
      and accurate and may be relied upon by the Issuer, and the Subscriber will
      notify the Issuer immediately of any material change in any such
      information occurring prior to the closing of the purchase of the
      Securities;

	 	 	 	 
	 	(t) 	
      the Subscriber is not an underwriter of, or dealer in,
      the shares of common stock of the Issuer, nor is the Subscriber
      participating, pursuant to a contractual agreement or otherwise, in the
      distribution of the Securities;

	 	 	 	 
	 	(u) 	
      the Subscriber understands and agrees that none of the
      Securities have been registered under the 1933 Act, or under any state
      securities or “blue sky” laws of any state of the United States, and,
      unless so registered, may not be offered or sold in the United States or,
      directly or indirectly, to U.S. Persons except in accordance with the
      provisions of Regulation S, pursuant to an effective registration
      statement under the 1933 Act, or pursuant to an exemption from, or in a
      transaction not subject to, the registration requirements of the 1933 Act
      and in each case only in accordance with applicable state securities
      laws;

	 	 	 	 
	 	(v) 	
      the Subscriber has made an independent examination and
      investigation of an investment in the Securities and the Issuer and has
      depended on the advice of its legal and financial advisors and agrees that
      the Issuer will not be responsible in any way whatsoever for the
      Subscriber’s decision to invest in the Securities of the Issuer;

	 	 	 	 
	 	(w) 	
      if the Subscriber is acquiring the Securities as a
      fiduciary or agent for one or more investor accounts, the investor
      accounts for which the Subscriber acts as a fiduciary or agent satisfy the
      definition of an “Accredited Investor”, as the term is defined under
      Regulation D of the 1933 Act;

	 	 	 	 
	 	(x) 	
      if the Subscriber is acquiring the Securities as a
      fiduciary or agent for one or more investor accounts, the Subscriber has
      sole investment discretion with respect to each such account, and the
      Subscriber has full power to make the foregoing acknowledgements,
      representations and agreements on behalf of such account;

	 	 	 	 
	 	(y) 	
      the Subscriber (and, if applicable, others for whom it is
      contracting hereunder) is not:

	 	 	 	 
	 		(i)	
      a licensed broker or dealer in the United
  States,

	 	 	 	 
	 		(ii)	
      an affiliate of a licensed broker or dealer in the United
      States,

Page 10 of 13

	 		(iii) 	
      acting as an underwriter (as that term is defined in
      Section 2(11) of the 1933 Act) in respect of the Shares, or

	 	 	 	 
	 		(iv) 	
      an affiliate of any person that is acting as an
      underwriter (as that term is defined in Section 2(11) of the 1933 Act) in
      respect of the Shares; and

	 	 	 	 
	 	(z) 	
      no person has made to the Subscriber or any Beneficial
      Purchaser any written or oral representations:

	 	 	 	 
	 		(i) 	
      that any person will resell or repurchase any of the
      Securities;

	 	 	 	 
	 		(ii) 	
      that any person will refund the purchase price of any of
      the Securities;

	 	 	 	 
	 		(iii) 	
      as to the future price or value of any of the Securities;
      or

	 	 	 	 
	 		(iv) 	
      that any of the Securities will be listed and posted for
      trading on any stock exchange or automated dealer quotation system or that
      application has been made to list and post any of the Securities of the
      Issuer on any stock exchange or automated dealer quotation
  system.

2.3 Reliance, indemnity and notification of changes

The representations and warranties in the Subscription
Agreement (including the first (cover) page, the Terms on page 3, the General
Provisions on pages 5 to 12 and the other schedules and appendices incorporated
by reference) are made by the Subscriber with the intent that they be relied
upon by the Issuer in determining its suitability as a purchaser of Securities,
and the Subscriber hereby agrees to indemnify the Issuer against all losses,
claims, costs, expenses and damages or liabilities which any of them may suffer
or incur as a result of reliance thereon. The Subscriber undertakes to notify
the Issuer immediately of any change in any representation, warranty or other
information relating to the Subscriber set forth in the Subscription Agreement
(including the first (cover) page, the Terms on page 3, the General Provisions
on pages 5 to 12 and the other schedules and appendices incorporated by
reference) which takes place prior to the Closing.

2.4 Survival of representations and warranties

The representations and warranties contained in this Section
will survive the Closing.

3. ACKNOWLEDGEMENT AND WAIVER

The Subscriber has acknowledged that the decision to acquire
the Securities was solely made on the basis of publicly available information.
The Subscriber hereby waives, to the fullest extent permitted by law, any rights
of withdrawal, rescission or compensation for damages to which the Subscriber
might be entitled in connection with the distribution of any of the
Securities.

Page 11 of 13

4. COLLECTION OF PERSONAL INFORMATION

4.1 The Subscriber acknowledges and consents to the fact that
the Issuer is collecting the Subscriber’s personal information for the purpose
of fulfilling this Subscription Agreement and completing the offering. The
Subscriber’s personal information (and, if applicable, the personal information
of those on whose behalf the Subscriber is contracting hereunder) may be
disclosed by the Issuer to (a) stock exchanges or securities regulatory
authorities, (b) the Issuer’s registrar and transfer agent, and (c) any of the
other parties involved in the Offering, including legal counsel, and may be
included in record books in connection with the offering. By executing this
Subscription Agreement, the Subscriber is deemed to be consenting to the
foregoing collection, use and disclosure of the Subscriber’s personal
information (and, if applicable, the personal information of those on whose
behalf the Subscriber is contracting hereunder) and to the retention of such
personal information for as long as permitted or required by law or business
practice. Notwithstanding that the Subscriber may be purchasing Securities as
agent on behalf of an undisclosed principal, the Subscriber agrees to provide,
on request, particulars as to the identity of such undisclosed principal as may
be required by the Issuer in order to comply with the foregoing.

4.2 Furthermore, the Subscriber is hereby notified that the
Issuer may deliver to the SEC certain personal information pertaining to the
Subscriber, including such Subscriber’s full name, residential address and
telephone number, the number of shares or other securities of the Issuer owned
by the Subscriber, the number of Securities purchased by the Subscriber and the
total purchase price paid for such Securities, the prospectus exemption relied
on by the Issuer and the date of distribution of the Securities.

5. ISSUER’S ACCEPTANCE

The Subscription Agreement, when executed by the Subscriber,
and delivered to the Issuer, will constitute a subscription for the Shares which
will not be binding on the Issuer until accepted by the Issuer by executing the
Subscription Agreement in the space provided on the face page(s) of the
Subscription Agreement and, notwithstanding the Agreement Date, if the Issuer
accepts the subscription by the Subscriber, the Subscription Agreement will be
entered into on the date of such execution by the Issuer.

6. CLOSING

6.1 On or before the end of the business day before the Closing
Date, the Subscriber shall deliver to the Issuer or the Issuer’s lawyers the
Subscription Agreement and all applicable schedules and required forms, duly
executed, and wire payment in full for the total price of the Shares to be
purchased by the Subscriber to the Issuer’s lawyers pursuant to the wiring
instruction provided by the Issuer or the Issuer’s lawyers. After the funds are
delivered to the Issuer’s lawyers, those lawyers are authorized to immediately
release the funds to the Issuer.

6.2 At Closing, the Issuer will deliver to the Subscriber the
certificates representing the Shares purchased by the Subscriber registered in
the name of the Subscriber or its nominee, or as directed by the Subscriber.

6.3 Where the funds for the purchase of the Shares are
delivered to the Issuer’s lawyers, the Issuer is entitled to treat such funds as
an interest free loan to the Issuer until such time as the subscription for the
Shares is accepted and the certificates representing the Shares have been issued
to the Subscriber.

7. LEGENDS

7.1 The Subscriber acknowledges that, in addition to the other
legends that may be required by Securities Laws, the certificates representing
the Shares will bear the following legend:

Page 12 of 13

“THESE SECURITIES
HAVE NOT BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE AND HAVE BEEN ISSUED IN
RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “1933 ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT OR PURSUANT
TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN ACCORDANCE WITH APPLICABLE
STATE SECURITIES LAWS.”

8. MISCELLANEOUS

8.1 The Subscriber agrees to sell, assign or transfer the
Securities only in accordance with the requirements of applicable securities
laws and any legends placed on the Securities as contemplated by the
Subscription Agreement.

8.2 The Subscriber hereby authorizes the Issuer to correct any
minor errors in, or complete any minor information missing from any part of the
Subscription Agreement and any other schedules, forms, certificates or documents
executed by the Subscriber and delivered to the Issuer in connection with the
Offering.

8.3 The Issuer will be entitled to rely on delivery by
facsimile machine or e-mail of an executed copy of this Subscription Agreement,
and acceptance by the Issuer of such facsimile or e-mail copy shall be equally
effective to create a valid and binding agreement between the Subscriber and the
Issuer in accordance with the terms hereof. If less than a complete copy of this
Subscription Agreement is delivered to the Issuer at Closing, the Issuer and its
counsel are entitled to assume that the Subscriber accepts and agrees to all of
the terms and conditions of the pages not delivered at Closing unaltered. This
Subscription Agreement may be executed in two or more counterparts, each of
which shall be deemed to be an original and all of which together shall
constitute one and the same Subscription Agreement.

8.4 Without limitation, this subscription and the transactions
contemplated by this Subscription Agreement are conditional upon and subject to
the Issuer’s having obtained such regulatory approval of this subscription and
the transactions contemplated by this Subscription Agreement as the Issuer
considers necessary.

8.5 This Subscription Agreement is not assignable or
transferable by the parties hereto without the express written consent of the
other party to this Subscription Agreement.

8.6 Time is of the essence of this Subscription Agreement.

8.7 Except as expressly provided in this Subscription Agreement
and in the agreements, instruments and other documents contemplated or provided
for in this Subscription Agreement, this Subscription Agreement contains the
entire agreement between the parties with respect to the Securities and there
are no other terms, conditions, representations or warranties whether expressed,
implied, oral or written, by statute, by common law, by the Issuer, or by anyone
else.

8.8 The parties to this Subscription Agreement may amend this
Subscription Agreement only in writing.

8.9 This Subscription Agreement enures to the benefit of and is
binding upon the parties to this Subscription Agreement and their successors and
permitted assigns.

8.10 A party to this Subscription Agreement will give all
notices to or other written communications with the other party to this
Subscription Agreement concerning this Subscription Agreement by hand or by
registered mail addressed to the address given on page 1.

8.11 This Subscription Agreement is to be read with all changes
in gender or number as required by the context.

Page 13 of 13

8.12 This Subscription Agreement will be governed by and
construed in accordance with the internal laws of State of Nevada (without
reference to its rules governing the choice or conflict of laws).

End of General Provisions

End of Subscription AgreementPBNY-9.30-10K Ex 10.11

13
54330926v8
EMPLOYMENT AGREEMENT 
This Employment Agreement (“Agreement”) is made and entered into as of the 31st day of October 2011 (“Effective Date”), by and among Provident New York Bancorp, a Delaware corporation (the “Company), Provident Bank, a savings bank organized and existing under the laws of the United States of America (the “Bank”; and together with the Company, “Provident”), and David S. Bagatelle (“Executive”). 
WITNESSETH:
WHEREAS, the Company and the Bank desire to employ Executive as Executive Vice President of the Company and the Bank and President of the Bank's New York City market; and 
WHEREAS,  Executive desires to serve in such positions;
NOW, THEREFORE, in consideration of the premises and the mutual covenants and obligations hereinafter set forth, the Company, the Bank and Executive hereby agree as follows:
1.Employment.  
Subject to the terms set forth herein, Executive will be employed as Executive Vice President of the Company and the Bank and President of the Bank's New York City market.  Executive shall have such authority, perform such duties and fulfill such responsibilities commonly incident to such positions or which are delegated to Executive by the President and Chief Executive Officer of the Company and the Bank.  While employed, Executive shall devote his full business time and attention to the business and affairs of Provident and shall use his best efforts to advance the interests of Provident.
2.Employment Period
(a)Duration.  Executive's period of employment with Provident shall begin on the Effective Date and shall continue until the first anniversary of such date (or if a Change in Control occurs prior to such first anniversary, the one year anniversary of the date of the Change in Control), unless terminated prior thereto by either Provident or Executive in accordance with Section 6 hereof (such period of employment being the “Employment Period”).
(b)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 Company, the Bank, and Executive may agree.
3.Compensation
(a)Base Salary. In consideration for the services performed by Executive during the Employment Period, Provident shall pay to Executive an annual salary (“Base Salary”) of $400,000.  The Base Salary shall be paid in approximately equal installments in accordance with the Bank's customary payroll practices.  
(b)Annual Bonus.  During the Employment Period, Executive shall be eligible to participate in Provident's Short-Term Incentive Plan (or any successor thereto) (the “Annual Bonus Plan”).  Executive's target annual bonus under the Annual Bonus Plan shall be 35% of Executive's Base Salary (the “Target Bonus”).  The actual amount of Executive's annual bonus shall depend upon the achievement of performance goals established by the Executive Compensation Committee of the Board and may range from 0% of the Target Bonus to 200% of the Target Bonus.  
(c)Long-Term Compensation.  During the Employment Period, Executive shall be eligible to participate in any equity and/or other long-term compensation programs established by Provident from time to time for senior executive officers on a basis consistent with Executive's status as an Executive Vice President of the Company and the Bank.  

(d)Employee Benefit Plans; Paid Time Off.
(i)Benefit Plans.  During the Employment Period, Executive shall be an employee of the Company and the Bank and shall be entitled to participate in Provident's (A) tax-qualified retirement plans (as of the date hereof, Provident's 401(k) and Profit Sharing Plan and Employee Stock Ownership Plan); (B) group life, health and disability insurance plans; and (C) any other employee benefit plans and programs, in accordance with Provident's customary practices, provided that Executive's participation shall be subject to the terms of such plans and programs (including being a member of the class of employees authorized to participate in the plan or program), and provided further that nothing herein shall limit Provident's right to amend or terminate any such plans or programs.
(ii)Paid Time Off.  Executive shall be entitled to four (4) weeks of paid vacation time each year during the Employment Period (measured on a fiscal or calendar year basis, in accordance with the Provident's usual practices), as well as sick leave, holidays and other paid absences in accordance with the Provident's policies and procedures for senior executives.  Any unused paid time off during an annual period may be carried forward into the following year to the extent permitted under Provident's policies and procedures and Executive shall not be compensated for any unused paid time off.
(e)Expenses.  Provident shall reimburse Executive for Executive's ordinary and necessary business expenses and travel and entertainment expenses incurred in connection with the performance of his duties under this Agreement upon presentation to Provident of an itemized account of such expenses in such form as Provident may reasonably require.
4.Principal Place of Employment
Executive's principal place of employment during the Employment Period shall be at the Company's principal executive offices in Manhattan for the Bank's New York City market or at such other location upon which the Company and Executive may mutually agree.  
5.Outside Activities and Board Memberships
Except with the prior written consent of the Company, Executive will not, during the term of Executive's employment, undertake or engage in any other employment, occupation or business enterprise that would interfere with Executive's responsibilities and the performance of Executive's duties hereunder; provided, however, that Executive will be permitted to serve as a director of other for-profit and not-for-profit organizations and corporations so long as (a) such services does not interfere with the performance of Executive's obligations hereunder, (b) such organizations and corporations are not competitive in any business area in which the Company or the Bank is engaged and (c) such service is approved by the Board of Directors of the Company (“the Board”) prior to the commencement of such service. 
6.Termination of Employment
(a)Termination by the Company Without Cause.
(i)Provident shall have the right to terminate Executive's employment at any time during the Employment Period without Cause by giving notice to Executive as described in Section 6(f).  For sake of clarity, neither termination of Executive's employment pursuant to Section 6(e) nor upon or after expiration of the Employment Period shall constitute a termination without Cause for purposes of this Section 6.
(ii)In the event that Provident terminates Executive's employment during the Employment Period without Cause: 
(A)Provident shall pay or provide to Executive any Accrued Obligations;
(B)If such termination of employment occurs within one year after a Change in Control, subject to Section 6(g), Provident shall (I) pay to Executive [within sixty (60) days following the date of termination] a lump sum cash payment (the “CIC Severance Payment”) equal to Executive's Base Salary immediately prior to termination of employment and (II) pay to Executive on a monthly basis commencing with the first month following Executive's termination of employment and continuing until the eighteenth month following Executive's termination of employment a cash payment (subject to reduction 

for applicable withholding taxes) equal to the monthly COBRA premium in effect as of the date of Executive's termination of employment for the level of coverage in effect for Executive under Provident's group health plan (the “CIC COBRA Payments”); 
(b)Termination by the Company for Cause.  Provident shall have the right to terminate Executive's employment at any time during the Employment Period for Cause by giving notice to Executive as provided in Section 6(f) hereof.  In the event Executive's employment is terminated for Cause, Provident's sole obligation shall be to pay or provide to Executive any Accrued Obligations.  
(c)Resignation by Executive Without Good Reason.  Executive may resign from employment during the Employment Period without Good Reason at any time by giving notice to the Company as described in Section 6(f).  In the event Executive resigns from employment without Good Reason, Provident's sole obligation shall be to pay or provide to Executive any Accrued Obligations.  
(d)Resignation by Executive for Good Reason.  Executive may resign from employment under this Agreement for Good Reason by giving notice to the Company as described in Section 6(f).  In the event Executive resigns from employment for Good Reason, Provident shall pay or provide to Executive the same payments and benefits subject to the same terms and conditions, as described in Sections 6(a)(ii)(A)-(B) as if Executive's employment was terminated by Provident without Cause pursuant to Section 6(a) as of the date of Executive's termination of employment for Good Reason.  
(e)Termination by Reason of Death or Disability of Executive. 
(i)In the event of Executive's death during the Employment Period, Provident's sole obligation shall be to pay to Executive's legal representatives any Accrued Obligations.
(ii)The Company shall be entitled to terminate Executive's employment due to Executive's Disability.  If Executive's employment hereunder is terminated due to Executive's Disability, Provident's sole obligation shall be to pay or provide to Executive any Accrued Obligations. 
(f)Notice; Effective Date of Termination.  Notice of termination of employment under this Agreement shall be communicated by or to Executive (on one hand) or the Company (on the other hand) in writing in accordance with Section 13.  Termination of Executive's employment pursuant to this Agreement shall be effective on the earliest of:
(i)immediately after Provident gives notice to Executive of Executive's termination without Cause, unless the parties agree to a later date, in which case, termination shall be effective as of such later date; 
(ii)immediately upon approval by the Board of termination of Executive's employment for Cause; 
(iii)immediately upon Executive's death; 
(iv)in the case of termination by reason of Executive's Disability, the date on which Executive is determined to be permanently disabled for purposes of Provident's long-term disability plan or policy that covers Executive; or
(v)thirty (30) days after Executive gives written notice to Provident of Executive's resignation from employment under this Agreement (including for Good Reason), provided that the Company  or the Bank may set an earlier termination date at any time prior to the date of termination of employment, in which case Executive's resignation shall be effective as of such other date.
(g)General Release of Claims.  Executive shall not be entitled to the CIC Severance Payment or the CIC COBRA Payments (together, the CIC Severance Benefits”) pursuant to Section 6(a) or 6(d) hereof unless (i) Executive has executed and delivered to the Company a general release of claims (in such form as the Company shall specify) (the “Release”) and such Release has become irrevocable under the Age Discrimination in Employment Act (ADEA) not later than fifty-six (56) days after the date of Executive's termination of employment hereunder.  Executive's entitlement to any CIC Severance Benefits is further conditioned upon Executive returning to Provident all property of Provident on or prior to the date of Executive's termination of employment with Provident and complying with the terms of Sections 5, 8, and 9 hereof and the Release.  Provident shall deliver to Executive a copy of the Release not later than three (3) 

days after Executive's termination of employment hereunder after a Change in Control pursuant to Section 6(a) or 6(d) hereof.  
(h)No Other Severance Benefits.  Executive acknowledges that any of the CIC Severance Benefits paid hereunder are in lieu of, and not in addition to, any payments and/or benefits to which Executive may otherwise be entitled under any severance plan, policy or program of Provident.  
(i)Payment of Obligations.  Notwithstanding anything to the contrary herein, any payment obligation of the Company or the Bank under this Agreement may be satisfied in whole or in part by payment by the Company, the Bank, or any affiliate and any such payment shall, for purposes of this Agreement, be treated as if made by the Company or the Bank (as applicable).  
(j)Resignation from Positions.  Upon termination of Executive's employment for any reason, Executive shall promptly (i) resign from all positions (including, without limitation, any management, officer, or director position) with Provident and (ii) relinquish any power of attorney, signing authority, trust authorization, or bank account signatory authorization that Executive may hold on behalf of Provident.  Executive's execution of this Agreement shall be deemed the grant by Executive to the officers of the Company and the Bank of a limited power of attorney to sign in Executive's name and on Executive's behalf such documentation as may be necessary or appropriate for the limited purposes of effectuating such resignations and relinquishments. 
(k)Golden Parachute Limit.  (i)  Notwithstanding any other provision of this Agreement, in the event that any portion of the CIC Severance Benefits or any other payment or benefit received or to be received by Executive (whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement) (collectively, the "Total Benefits") would be subject to the excise tax imposed under Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”) (the “Excise Tax”), the Total Benefits shall be reduced to the extent necessary so that no portion of the Total Benefits is subject to the Excise Tax; provided, however, that no such reduction in the Total Benefits shall be made if by not making such reduction, Executive's Retained Amount (as hereinafter defined) would be greater than Executive's Retained Amount if the Total Benefits are so reduced.  All determinations required to be made under this Section 6(k) shall be made by tax counsel selected by Provident and reasonably acceptable to Executive (“Tax Counsel”), which determinations shall be conclusive and binding on Executive and Provident absent manifest error.  All fees and expenses of Tax Counsel shall be borne solely by Provident.  Prior to any reduction in Executive's Total Benefits pursuant to this Section 6(k), Tax Counsel shall provide Executive and the Company with a report setting forth its calculations and containing related supporting information.  In the event any such reduction is required, the Total Benefits shall be reduced in the following order: (i) the CIC COBRA Payments, (ii) the CIC Severance Payment, (iii) any other portion of the Total Benefits that are not subject to Section 409A of the Code (other than Total Benefits resulting from any accelerated vesting of equity awards), (iv) Total Benefits that are subject to Section 409A of the Code in reverse order of payment, and (v) Total Benefits that are not subject to Section 409A and arise from any accelerated vesting of any equity awards.  The parties hereto hereby elect to use the applicable Federal rate that is in effect on the date this Agreement is entered into for purposes of determining the present value of any payments provided for hereunder for purposes of Section 280G of the Code.  “Retained Amount” shall mean the present value (as determined in accordance with sections 280G(b)(2)(A)(ii) and 290G(d)(4) of the Code) of the Total Benefits net of all federal, state and local taxes imposed on Executive with respect thereto.
7.Certain Definitions. 
(a)“Accrued Obligations” means (i) any accrued and unpaid Base Salary of Executive through the date of termination of employment, payable pursuant to the Bank's standard payroll policies, (ii) any compensation and benefits to the extent payable to Executive based on Executive's participation in any compensation or benefit plan, program or arrangement of Provident through the date of termination of employment, payable in accordance with the terms of such plan, program or arrangement, and (iii) any expense reimbursement to which Executive is entitled under Provident's standard expense reimbursement policy (as applicable) and Sections 3(e) and 10 hereof.

(b)“Cause” means Executive's failure or refusal to substantially perform his duties hereunder, personal dishonesty, incompetence, misconduct, breach of fiduciary duty to the Company or the Bank, breach of the Bank's Code of Ethics, material violation of the Sarbanes-Oxley or other legal requirements for officers of public companies that in the reasonable opinion of the Board will likely cause material financial harm or material injury to the reputation of the Company or the Bank, engaging in actions that in the reasonable opinion of the Board will likely cause material financial harm or material injury to the business reputation of the Company or Bank, 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 this Agreement.     
(c)“Change in Control” means the occurrence of any of the following:
(i)any “person” (as the term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), other than any employee benefit plan of Provident or any affiliate, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 25% or more of the combined voting power of Company's outstanding securities; or 
(ii)individuals who constitute the Board on the date hereof (the “Incumbent Board”) cease for any reason to constitute at least a majority thereof, provided that any person becoming a director subsequent to the date hereof whose election was approved by a vote of at least three-quarters of the directors comprising the Incumbent Board, or whose nomination for election by the Company's stockholders was approved by the Nominating Committee serving under an Incumbent Board, shall be, for purposes of this clause (ii), considered as though such person were a member of the Incumbent Board; or 
(iii)the Company consummates a merger, consolidation, share exchange, division or other reorganization or transaction of the Company (a “Fundamental  Transaction”) with any other corporation, other than a Fundamental Transaction that  results in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of the combined Voting Power immediately after such Fundamental Transaction of (i) the Company's outstanding  securities, (ii) the surviving entity's outstanding securities or (iii) in the case of a division, the outstanding securities of each entity resulting from the division; or
(iv)the shareholders of the Company approve a plan of complete liquidation or winding up of the Company; or 
(v)the consummation of an agreement for the sale or disposition (in one transaction or a series of transactions) of all or substantially all of the Company's or the Bank's assets.
(d)“Disability” means that Executive is deemed disabled for purposes of Provident's long-term disability plan or  policy that covers Executive.
(e)“Good Reason” means the occurrence of any of the following events (without Executive's consent):
(i)a material adverse change in Executive's functions, duties, or responsibilities with the Company and the Bank, which change would cause Executive's position to become one of materially lesser responsibility, importance, or scope; or
(ii)a material breach of this Agreement by the Company or the Bank.
Notwithstanding the foregoing, no such event shall constitute “Good Reason” unless (a) Executive shall have given written notice of such event to the Company within ninety (90) days after the initial occurrence thereof, (b) the Company and the Bank shall have failed to cure the situation within thirty (30) days following the delivery of such notice (or such longer cure period as may be agreed upon by the parties), and (c) Executive terminates employment within thirty (30) days after expiration of such cure period.
8.Confidentiality.  Unless Executive obtains prior written consent from the Company or the Bank, Executive shall keep confidential and shall refrain from using for the benefit of Executive, or any person or entity other than the Company, the Bank or any entity which is a subsidiary or affiliate 

of the Company or the Bank or of which the Company or the Bank is a subsidiary or affiliate, any document or information obtained from the Company, the Bank or from any of their respective parents, subsidiaries or affiliates, in the course of Executive's employment with any of them concerning their properties, operations or business (unless such document or information is readily ascertainable from public or published information or trade sources or has otherwise been made available to the public through no fault of Executive) until the same becomes so ascertainable or available; provided, however, that nothing in this Section shall prevent Executive, with or without the Bank's or the Company's consent, from participating in or disclosing documents or information in connection with any judicial or administrative investigation, inquiry or proceeding to the extent that such participation or disclosure is required under applicable law.
9.Non-Solicitation; Post-Termination Cooperation
(a)Executive hereby covenants and agrees that, while employed by Provident and for a period of one year following Executive's termination of employment with Provident (whether or not during the Employment Period), Executive shall not, without the prior written consent of the Company, either directly or indirectly:
(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 Company, the Bank or any of their respective subsidiaries or affiliates to terminate his or her employment and accept employment or become affiliated with, or provide services for compensation in any capacity whatsoever, to any other person, business or entity; or
(ii)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 Company or the Bank or any of their affiliates to terminate an existing business or commercial relationship with the Company or the Bank or any of their affiliates.
(b)Executive shall, upon reasonable notice, furnish such information and assistance to the Company and/or the Bank, as may reasonably be required by the Company and/or the Bank, in connection with any litigation in which it or any of its subsidiaries or affiliates is, or may become, a party; provided, however, that Executive shall not be required to provide information or assistance with respect to any litigation between Executive and the Company, the Bank or any of their subsidiaries or affiliates.
(c)All payments and benefits to Executive under this Agreement shall be subject to Executive's compliance with this Section.  The parties hereto, recognizing that irreparable injury will result to the Company, the Bank and/or their affiliates, and their business and property in the event of Executive's breach of this Section, agree that, in the event of any such breach by Executive, the Company and the Bank will be entitled, in addition to any other remedies and damages available, to an injunction to restrain the violation hereof by Executive and all persons acting for or with Executive.  Nothing herein will be construed as prohibiting the Company and the Bank from pursuing any other remedies available to them for such breach or threatened breach, including the recovery of damages from Executive.
10.Section 409A of the Code.  
(a)This Agreement is intended to comply with the requirements of Section 409A of the Code (including the exceptions thereto), to the extent applicable, and the Company shall administer and interpret this Agreement in accordance with such requirements.  If any provision contained in the Agreement conflicts with the requirements of Section 409A of the Code (or the exemptions intended to apply under the Agreement), the Agreement shall be deemed to be reformed to comply with the requirements of Section 409A of the Code (or the applicable exemptions thereto).  Notwithstanding anything to the contrary herein, for purposes of determining any entitlement of Executive to the CIC Severance Benefits, (i) Executive's employment shall not be deemed to have terminated unless and until Executive incurs a “separation from service” as defined in Section 409A of the Code.   Reimbursement of any expenses provided for in this Agreement shall be made promptly upon presentation of documentation in accordance with Provident's policies with respect thereto as in effect from time to time (but in no event later than the end of calendar year following the year such 

expenses were incurred); provided, however, that in no event shall the amount of expenses eligible for reimbursement hereunder during a calendar year affect the expenses eligible for reimbursement in any other taxable year.  Notwithstanding anything to the contrary herein, if a payment or benefit under this Agreement is due to a “separation from service” for purposes of the rules under Treas. Reg. § 1.409A-3(i)(2) (payments to specified employees upon a separation from service) and Executive is determined to be a “specified employee” (as determined under Treas. Reg. § 1.409A-1(i) and related Company procedures), such payment shall, to the extent necessary to comply with the requirements of Section 409A of the Code, be made on the later of (x) the date specified by the foregoing provisions of this Agreement or (y) the date that is six (6) months after the date of Executive's separation from service (or, if earlier, the date of Executive's death).  Any installment payments that are delayed pursuant to this Section 10 shall be accumulated and paid in a lump sum on the first day of the seventh month following the Date of Termination (or, if earlier, upon Executive's death) and the remaining installment payments shall begin on such date in accordance with the schedule provided in this Agreement.  Each installment of the CIC COBRA Payments shall be deemed to be a separate payment for purposes of Section 409A of the Code.  The CIC Severance Benefits are intended not to constitute deferred compensation subject to Section 409A of the Code.   
11.Additional Termination and Suspension Provisions
(a)If Executive is suspended and/or temporarily prohibited from participating in the conduct of the Bank's affairs by a notice served under Section 8(e)(3) or (g)(1) of the Federal Deposit Insurance Act, as amended (12 U.S.C. §§ 1818(e)(3) and (g)(1)), all obligations of the Company and the Bank 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 Company and the Bank may in their discretion (but subject in all events to the requirements of Code Section 409A), (i) pay Executive all of the compensation withheld while the Company's and the Bank's obligations under this Agreement were suspended and (ii) reinstate (in whole) any of the Company's and the Bank's obligations which were suspended, and in exercising such discretion, the Company and the Bank shall consider the facts and make a decision promptly following such dismissal of charges and act in good faith in deciding whether to pay any withheld compensation to Executive and to reinstate any suspended obligations of the Company and the Bank.
(b)If Executive is removed and/or permanently prohibited from participating in the conduct of the Bank's affairs by an order issued under Section 8(e)(4) or (g)(1) of the Federal Deposit Insurance Act, as amended (12 U.S.C. §§ 1818(e)(4) or (g)(1)), all obligations of the Company and the Bank under this Agreement shall terminate as of the effective date of the order, but vested rights of the parties shall not be affected.
(c)If the Bank is in default, as defined in Section 3(x)(1) of the Federal Deposit Insurance Act, as amended (12 U.S.C. § 1813(x)(1)), all obligations of the Company and the Bank under this Agreement shall terminate as of the date of default, but this provision shall not affect any vested rights of the parties.
(d)All obligations under this Agreement shall be terminated, except to the extent determined that continuation of this Agreement is necessary for the continued operation of the Bank, (i) by the OTS  or other applicable banking regulator (the “Regulator”), at the time the FDIC enters into an agreement to provide assistance to or on behalf of the Bank under the authority contained in Section 13(c) of the Federal Deposit Insurance Act, as amended; or (ii) by the Regulator, at the time the Regulator approves a supervisory merger to resolve problems related to operation of the Bank or when the Bank is determined by the Regulator 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. 
(e)If any regulation applicable to the Company or the Bank shall hereafter be adopted, amended or modified or if any new regulation applicable to the Company or the Bank and effective after the date of this Agreement: 

(i)shall require the inclusion in this Agreement of a provision not presently included in this Agreement, then the foregoing provisions of this Section shall be deemed amended 

to the extent necessary to give effect in this Agreement to any such amended, modified or new regulation; and
(ii)shall permit the exclusion of a limitation in this Agreement on the payment to Executive of an amount or benefit provided for presently in this Agreement, then the foregoing provisions of this Section shall be deemed amended to the extent permissible to exclude from this Agreement any such limitation previously required to be included in this Agreement by a regulation prior to its amendment, modification or repeal. 
12.Arbitration.  Any dispute or controversy arising out of, under, in connection with, or relating to this Agreement or any amendment hereof shall be submitted to binding arbitration before one arbitrator in Rockland County, New York in accordance with the Commercial Arbitration Rules of the American Arbitration Association for expedited arbitration, and any judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.
13.Notices. The persons or addresses to which mailings or deliveries shall be made may change from time to time by notice given pursuant to the provisions of this Section.  Any notice or other communication given pursuant to the provisions of this Section shall be deemed to have been given (a) if sent by messenger, upon personal delivery to the party to whom the notice is directed; (b) if sent by reputable overnight courier, one business day after delivery to such courier; (c) if sent by facsimile, upon electronic or telephonic confirmation of receipt from the receiving facsimile machine and (d) if sent by mail, three business days following deposit in the United States mail, properly addressed, postage prepaid, certified or registered mail with return receipt requested.  All notices required or permitted to be given hereunder shall be addressed as follows:
	
		
	If to Executive:
	David S. Bagatelle

	 
	52 Walsh Drive

	 
	Mahwah, New Jersey, 07430

	 
	 

	If to the Company or  the Bank:
	Provident New York Bancorp or Provident Bank as applicable
400 Rella Boulevard

	 
	Montebello, New York 10901

	 
	Attention: Chief Executive Officer

	 
	 

14.Amendment.  No modifications of this Agreement shall be valid unless made in writing and signed by the parties hereto.
15.Miscellaneous
(a)Successors and Assigns.  This Agreement will inure to the benefit of and be binding upon Executive, his legal representatives and estate and intestate distributees, and the Company and the Bank, their successors and assigns, including any successor by merger or consolidation or a statutory receiver or any other person or firm or corporation to which all or substantially all of the assets and business of the Company or the Bank, as applicable, may be sold or otherwise transferred.  Any such successor of the Company or the Bank shall be deemed to have assumed this Agreement and to have become obligated hereunder to the same extent as the Company or the Bank, as applicable, and Executive's obligations hereunder shall continue in favor of such successor.
(b)Severability.  A determination that any provision of this Agreement is invalid or unenforceable shall not affect the validity or enforceability of any other provision hereof.
(c)Waiver.  Failure to insist upon strict compliance with any terms, covenants or conditions hereof shall not be deemed a waiver of such term, covenant or condition.  A waiver of any provision of this 

Agreement must be made in writing, designated as a waiver, and signed by the party against whom its enforcement is sought.  Any waiver or relinquishment or any right or power hereunder at any one or more times shall not be deemed a waiver or relinquishment of such right or power at any other time or times.  
(d)Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, and all of which shall constitute one and the same Agreement.
(e)Governing Law.  This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York, without reference to conflicts of law principles, except to the extent governed by federal law in which case federal law shall govern.  Any payments made to Executive pursuant to this Agreement or otherwise are subject to all applicable banking laws and regulations, including, without limitation, 12 U.S.C. § 1828 (k) and any regulations promulgated thereunder.
(f)Withholding.  The Company and the Bank may withhold from any amounts payable to Executive hereunder all federal, state, city or other taxes that the Company or the Bank may reasonably determine are required to be withheld pursuant to any applicable law or regulation (it being understood, that Executive shall be responsible for payment of all taxes in respect of the payments and benefits provided herein).
(g)Headings and Construction.  The headings of sections in this Agreement are for convenience of reference only and are not intended to qualify the meaning of any Section.  Any reference to a Section number shall refer to a Section of this Agreement, unless otherwise specified.
(h)Entire Agreement.  This instrument contains the entire agreement of the parties relating to the subject matter hereof, and supersedes in its entirety any and all prior agreements, understandings or representations relating to the subject matter hereof.  
[Signatures on next page]

IN WITNESS WHEREOF, the Company and the Bank have caused this Agreement to be executed and Executive has hereunto set his hand, all as of the Effective Date specified above.

	
				
	 
	 
	 
	EXECUTIVE

	Date: 
	October 31, 2011
	By:  
	/s/ David S. Bagatelle

	 
	 
	 
	David S. Bagatelle

	 
	 
	 
	 

	 
	 
	 
	 

	
				
	 
	 
	 
	PROVIDENT NEW YORK BANCORP

	Date: 
	October 31, 2011
	By:  
	/s/ Jack Kopnisky

	 
	 
	 
	Jack Kopnisky

	 
	 
	 
	 

	 
	 
	 
	 

	
				
	 
	 
	 
	PROVIDENT BANK

	Date: 
	October 31, 2011
	By:  
	/s/ Jack Kopnisky

	 
	 
	 
	Jack Kopnisky

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