Document:

ex10-2.htm

    Exhibit
10.2

     

    AMENDMENT
AGREEMENT

    

    THIS
AMENDMENT AGREEMENT (this "Agreement"), dated as
of December 11, 2008 is entered into by and between Telanetix, Inc., a Delaware
corporation (the "Company"), Enable
Growth Partners LP ("Enable Growth"),
Enable Opportunity Partners LP ("Enable Opportunity"),
Pierce Diversified Strategy Maser Fund LLC, ena ("Pierce") and Crescent
International Ltd. ("Crescent" and
collectively with Enable Growth, Enable Opportunity and Pierce, the "Holders"). Capitalized terms used herein, but
not otherwise defined, shall have the meanings ascribed to such terms in the
Exchange Agreement (as defined below).

    

    WHEREAS, the Company and the
Holders are parties to that certain Securities Purchase Agreement dated December
28, 2006, pursuant to which the Company issued to the Holders, among other
securities, common stock purchase warrants to purchase shares of Common Stock
(the "December 2006
Warrants");

    

    WHEREAS, the Company and the
Holders are parties to that certain Securities Purchase Agreement dated February
12, 2007, pursuant to which the Company issued to the Holders, among other
securities, common stock purchase warrants to purchase shares of Common Stock
(the "February 2007
Warrants");

    

    WHEREAS, the Company, Enable
Growth and Pierce are parties to that certain Securities Purchase Agreement
dated March 27, 2008 (the "March Purchase
Agreement") pursuant to which the Company issued to Enable Growth and
Pierce, among other securities, common stock purchase warrants to purchase
shares of Common Stock (the "March 2008
Warrants");

    

    WHEREAS, the Company and the
Holders are parties to that certain Securities Exchange Agreement dated June 30,
2008 (the "Exchange
Agreement") pursuant to which the Company issued to the Holders Amended
and Restated Senior Secured Convertible Debentures, due June 30, 2014 (the
"June 2008
Debentures");

    

    WHEREAS, the Company and
Enable Growth are parties to that certain Debenture and Warrant Purchase
Agreement dated August 13, 2008 (the "August Purchase
Agreement" and collectively with the March Purchase Agreement and
Exchange Agreement, the "Prior Agreements")
pursuant to which the Company issued to Enable Growth Senior Secured Convertible
Debentures due June 30, 2014 (the "August 2008
Debentures") and common stock purchase warrants to purchase Common Stock
(the "August 2008
Warrants");

    

    WHEREAS, pursuant to that
certain Securities Purchase Agreement dated October 31, 2008, Enable Growth
purchased from each of Hudson Bay Fund, LP, and Hudson Bay Overseas Fund, Ltd.
(together, "Hudson
Bay"), all of the debentures previously issued by the Company to Hudson
Bay (the "HB
Debentures" and collectively with the June 2008 Debentures and the August
2008 Debentures, the "Debentures") and
common stock purchase warrants previously issued by the Company to Hudson Bay
(the "HB
Warrants" and collectively with the December 2006 Warrants, February 2007
Warrants, March 2008 Warrants and August 2008 Warrants, the "Warrants");

    

    WHEREAS, the Company has
requested that the Holders agree to certain waivers and amendments, and the
Holders have agreed to such request, subject to the terms and conditions of this
Agreement.

    

    NOW, THEREFORE, in
consideration of the terms and conditions contained in this Agreement, and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties, intending to be legally bound hereby, agree as
follows:

    

    1. Adjustment to
Warrants.

     

    (a) Exercise
Price.  The Exercise Price of the Warrants is hereby adjusted
to equal $0.40 per share, subject to further adjustment as set forth in the
Warrants. As such, Section 2(b) of the Warrants is hereby deleted in its
entirety and replaced with the following: "Exercise
Price.  The
exercise price per share of the Common Stock under this Warrant shall be
$0.40, subject to adjustment hereunder
(the "Exercise
Price")."

     

    (b) Warrant Shares. Each
Holder hereby agrees to a one-time waiver of the increase in the number of
Warrant Shares issuable pursuant to Section 3(b) of the Warrants as a result of
the issuance of the debenture and warrant by the Company to the purchasers under
the Debenture and Warrant Purchase Agreement of even date herewith, which if not
waived would have resulted in the number of Warrant Shares being increased such
that the aggregate exercise price payable upon exercise of the Warrants, after
taking into account the decrease in the exercise price of such Warrants to
$0.40, would equal the aggregate exercise price prior to such
adjustment.

     

    2. Adjustment to Conversion
Price of Debentures. The Conversion Price of the Debentures is hereby
adjusted to equal $0.40 per share, subject to further adjustment as set forth in
the Debentures. As such, Section 4(b) of the Debentures is hereby deleted in its
entirety and replaced with the following: "Conversion
Price.  The
conversion price in effect on any Conversion Date shall be equal to $0.40,
subject to adjustment herein (the "Conversion
Price")."

     

    3. Interest.  The
parties hereto hereby agree that interest payable on the Debentures shall be, as
of the date hereof, payable quarterly at the rate of (a) 0% per annum from
October 1, 2008 until September 30, 2009, (b) 13.5% per annum from October 1,
2009 until September 30, 2012 and (c) 18% per annum from October 1, 2012 until
the Maturity Date of such Debenture. As such, Section 2(a) of each Debenture is
hereby deleted in its entirety and replaced with the following:

     

    "(a)           Payment of Interest in Cash
or Kind. The Company shall pay interest to the Holder on the aggregate
unconverted and then outstanding principal amount of this Debenture at the rate
of (i) 0% per annum from October 1, 2008 until September 30, 2009, (ii) 13.5%
per annum from October 1, 2009 until September 30, 2012 and (iii) 18% per annum
from October 1, 2012 until the Maturity Date, payable quarterly on January 1,
April 1, July 1 and October 1, beginning on the first such date after October 1,
2008, on each Optional Redemption Date (as to that principal amount then being
redeemed) and on the Maturity Date (each such date, an "Interest Payment
Date") (if any Interest Payment Date is not a Business Day, then the
applicable payment shall be due on the next succeeding Business Day), in cash or
duly authorized, validly issued, fully paid and non-assessable shares of Common
Stock at the Interest Conversion Rate (the dollar amount to be paid in shares of
Common Stock, the "Interest Share
Amount") or a combination thereof; provided, however, that payment
in shares of Common Stock may only occur if (i) all of the Equity Conditions
have been met (unless waived by the Holder in writing) during the 20 Trading
Days immediately prior to the applicable Interest Payment Date  (the
"Interest Notice
Period") and through and including the date such shares of Common Stock
are issued to the Holder, (ii) the Company shall have given the Holder notice in
accordance with the notice requirements set forth below and (iii) as to such
Interest Payment Date, not less than 2 Trading Days prior to such Interest
Payment Date, the Company shall have delivered to the Holder's account with The
Depository Trust Company a number of shares of Common Stock to be applied
against such Interest Share Amount equal to the quotient of (x) the applicable
Interest Share Amount divided by (y) the then Conversion Price (the "Interest Conversion
Shares").  In addition to the payment of interest described
above, on each Conversion Date, Forced Conversion Date and Optional Redemption
Date, the Company shall pay the Holder via a bank check or wire transfer in the
amount equal to all interest that would have accrued if the principal amount
subject to such Notice of Conversion, Forced Conversion Notice or Optional
Redemption Notice, as applicable, had remained outstanding through the Maturity
Date."

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4. Representations and
Warranties of the Company.  The Company hereby makes the
representations and warranties set forth below to the Holders as of the date of
its execution of this Agreement:

     

    (a) Authorization;
Enforcement.  The Company has the requisite corporate power and
authority to enter into and to consummate the transactions contemplated by this
Agreement and otherwise to carry out its obligations hereunder.  The
execution and delivery of this Agreement by the Company and the consummation by
it of the transactions contemplated hereby have been duly authorized by all
necessary action on the part of the Company and no further action is required by
the Company, the Board of Directors or the Company's stockholders in connection
therewith other than in connection with the Required Approvals.  This
Agreement has been duly executed by the Company and, when delivered in
accordance with the terms hereof, will constitute the valid and binding
obligation of the Company enforceable against the Company in accordance with its
terms except (i) as limited by general equitable principles and applicable
bankruptcy, insolvency, reorganization, moratorium and other laws of general
application affecting enforcement of creditors' rights generally, (ii) as
limited by laws relating to the availability of specific performance, injunctive
relief or other equitable remedies and (iii) insofar as indemnification and
contribution provisions may be limited by applicable law.

     

    (b) No
Conflicts.  The execution, delivery and performance of this
Agreement by the Company and the consummation by the Company of the transactions
contemplated hereby do not and will not: (i) conflict with or violate any
provision of the Company's or any Subsidiary's certificate or articles of
incorporation, bylaws or other organizational or charter documents, or (ii)
conflict with, or constitute a default (or an event that with notice or lapse of
time or both would become a default) under, result in the creation of any Lien
upon any of the properties or assets of the Company or any Subsidiary, or give
to others any rights of termination, amendment, acceleration or cancellation
(with or without notice, lapse of time or both) of, any agreement, credit
facility, debt or other instrument (evidencing a Company or Subsidiary debt or
otherwise) or other understanding to which the Company or any Subsidiary is a
party or by which any property or asset of the Company or any Subsidiary is
bound or affected, or (iii) subject to the Required Approvals, conflict with or
result in a violation of any law, rule, regulation, order, judgment, injunction,
decree or other restriction of any court or governmental authority to which the
Company or a Subsidiary is subject (including federal and state securities laws
and regulations), or by which any property or asset of the Company or a
Subsidiary is bound or affected; except in the case of each of clauses (ii) and
(iii), such as could not have or reasonably be expected to result in a Material
Adverse Effect.

     

    (c) Equal
Consideration.  Except as set forth in this Agreement, no
consideration has been offered or paid to any person to amend or consent to a
waiver, modification, forbearance or otherwise of any provision of any of the
Debentures or Warrants.

     

    (d) Survival and Bring
Down.  All of the Company's representations and warranties
contained in this Agreement shall survive the execution, delivery and acceptance
of this Agreement by the parties hereto.  The Company expressly
reaffirms that each of the representations and warranties set forth in the Prior
Agreements (as supplemented or qualified by the disclosures in any disclosure
schedule to any Prior Agreement), continues to be true, accurate and complete in
all material respects as of the date hereof (except as set forth in the
disclosure schedules provided by the Company pursuant to the Debenture and
Warrant Purchase Agreement of even date herewith (the "December 2008 Disclosure
Schedule"), and except for any representation and warranty made as of a
certain date, in which case such representation and warranty shall be true,
accurate and complete as of such date), and the Company hereby remakes and
incorporates herein by reference each such representation and warranty (as
qualified by the December 2008 Disclosure Schedule) as though made on the date
of this Agreement.

     

    5. Representations and
Warranties of the Holders.  Each Holder hereby makes the
representation and warranty set forth below to the Company as of the date of its
execution of this Agreement. Such Holder represents and warrants that (a) the
execution and delivery of this Agreement by it and the consummation by it of the
transactions contemplated hereby have been duly authorized by all necessary
action on its behalf and (b) this Agreement has been duly executed and delivered
by such Holder and constitutes the valid and binding obligation of such Holder,
enforceable against it in accordance with its terms except (i) as limited by
general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting
enforcement of creditors' rights generally, (ii) as limited by laws relating to
the availability of specific performance, injunctive relief or other equitable
remedies and (iii) insofar as indemnification and contribution provisions may be
limited by applicable law.

     

    6. Public
Disclosure.  On or before 9:30 am (Eastern Time) on the Trading
Day immediately following the date hereof, the Company shall file a Current
Report on Form 8-K, reasonably acceptable to the Holders disclosing the material
terms of the transactions contemplated hereby and attaching this Agreement as an
exhibit thereto. The Company shall consult with the Holders in issuing any other
press releases with respect to the transactions contemplated
hereby.

     

    7. Effect on Transaction
Documents. Except as expressly set
forth above, all of the terms and conditions of the Prior Agreements, Debentures
and Warrants shall continue in full force and effect after the execution of this
Agreement and shall not be in any way changed, modified or superseded by the
terms set forth herein, including, but not limited to, any other obligations the
Company may have to the Holders under the Prior Agreements, Debentures and
Warrants.  Notwithstanding the foregoing, this Agreement shall be deemed
for all purposes as an amendment to any and all of the Prior Agreements,
Debentures and Warrants as required to serve the purposes hereof, and in the
event of any conflict between the terms and provisions of any other of the Prior
Agreements, Debentures or Warrants, on the one hand, and the terms and
provisions of this Agreement, on the other hand, the terms and provisions of
this Agreement shall prevail.

    

    8. Amendments and
Waivers. The provisions of this Agreement, including the provisions of
this sentence, may not be amended, modified or supplemented, and waivers or
consents to departures from the provisions hereof may not be given, unless the
same shall be in writing and signed by the Company and the Holders.

    

    9. Notices. Any and all
notices or other communications or deliveries required or permitted to be
provided hereunder shall be delivered as set forth in the Exchange
Agreement.

     

    10. Successors and
Assigns. This Agreement shall inure to the benefit of and be binding upon
the successors and permitted assigns of each of the parties; provided, however, that no
party may assign this Agreement or the obligations and rights of such party
hereunder without the prior written consent of the other parties
hereto.

     

    11. Execution. This
Agreement may be executed in two or more counterparts, all of which when taken
together shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered to the
other party, it being understood that both parties need not sign the same
counterpart.  In the event that any signature is delivered by
facsimile transmission or by e-mail delivery of a ".pdf" format data file, such
signature shall create a valid and binding obligation of the party executing (or
on whose behalf such signature is executed) with the same force and effect as if
such facsimile or ".pdf" signature page were an original thereof.

     

    12. Fees and
Expenses.  Except as expressly set forth herein, each party
shall pay the fees and expenses of its advisers, counsel, accountants and other
experts, if any, and all other expenses incurred by such party incident to the
negotiation, preparation, execution, delivery and performance of this
Agreement.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    13. Governing
Law.  All questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be determined pursuant to
the Governing Law provision of the Exchange Agreement.

     

    14. Severability. If any
term, provision, covenant or restriction of this Agreement is held by a court of
competent jurisdiction to be invalid, illegal, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected, impaired
or invalidated, and the parties hereto shall use their commercially reasonable
efforts to find and employ an alternative means to achieve the same or
substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the
intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

     

    15. Construction. The
parties agree that each of them and/or their respective counsel has reviewed and
had an opportunity to revise this Agreement and, therefore, the normal rule of
construction to the effect that any ambiguities are to be resolved against the
drafting party shall not be employed in the interpretation of this Agreement or
any amendments hereto.

     

    16. Entire
Agreement.  This Agreement contains the entire understanding of
the parties with respect to the subject matter hereof and supersedes all prior
agreements and understandings, oral or written, with respect to such matters,
which the parties acknowledge have been merged into this Agreement.

     

    17. Headings.  The
headings herein are for convenience only, do not constitute a part of this
Agreement and shall not be deemed to limit or affect any of the provisions
hereof

     

    18. Independent Nature of
Holders' Obligations and Rights.  The obligations of each
Holder hereunder are several and not joint with the obligations of any other
Holders hereunder, and no Holder shall be responsible in any way for the
performance of the obligations of any other Holder hereunder. Nothing contained
herein or in any other agreement or document delivered at any closing, and no
action taken by any Holder pursuant hereto, shall be deemed to constitute the
Holders as a partnership, an association, a joint venture or any other kind of
entity, or create a presumption that the Holders are in any way acting in
concert with respect to such obligations or the transactions contemplated by
this Agreement. Each Holder shall be entitled to protect and enforce its rights,
including without limitation the rights arising out of this Agreement, and it
shall not be necessary for any other Holder to be joined as an additional party
in any proceeding for such purpose.

     

    19. Re-Issuance of Debentures
and Warrants. Upon the written request of either any of the Holders or
the Company, each party shall use commercially reasonable efforts to deliver the
instruments representing the original Debentures and Warrants to the Company in
exchange for replacement instruments that reflect the revised terms of such
securities as set forth in this Agreement.

     

    20. Default Under
Debentures. Each of the Holders hereby waives any default or breach that
may have resulted by way of the Company's failure to make the interest payment
due on October 1, 2008, November 1, 2008 and December 1, 2008 when due and in
accordance with the terms of the Debentures, and acknowledges that such payment
obligations are extinguished in all respects as a result of the adjustment to
the interest rate payable in respect of the Debentures as set forth in Section
3.

     

    [SIGNATURE
PAGE FOLLOWS]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    IN
WITNESS WHEREOF, the parties hereto have caused this Amendment Agreement to be
duly executed by their respective authorized signatories as of the date first
indicated above.

     

    TELANETIX,
INC.

    By:/s/ Douglas N.
Johnson                               

         Name:
Douglas N. Johnson

         Title:  Chief
Executive Officer

    

    

    

    

    

    ********************

    

    [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
PAGE FOR HOLDERS FOLLOW]

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [HOLDER'S
SIGNATURE PAGE TO TNXI AMENDMENT AGREEMENT]

     

     

    IN
WITNESS WHEREOF, the undersigned have caused this Amendment Agreement to be duly
executed by their respective authorized signatories as of the date first
indicated above.

     

    

    Name of
Holder: Crescent
International
Ltd.                                                                                                

    Signature of Authorized Signatory of
Holder: /s/
Maxi
Brezzi                                                                                                                                

    Name of
Authorized Signatory: Maxi
Brezzi                                                                                                

    Title of
Authorized Signatory: Authorized
Signatory

    

    

    

    

    [SIGNATURE
PAGES CONTINUE]

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    [HOLDER'S
SIGNATURE PAGE TO TNXI AMENDMENT AGREEMENT]

     

     

    IN
WITNESS WHEREOF, the undersigned have caused this Amendment Agreement to be duly
executed by their respective authorized signatories as of the date first
indicated above.

     

    

    Name of
Holder: Enable Growth
Partners LP

    Signature of Authorized Signatory of
Holder: /s/
Brendan
O'Neil                                                                                                                                          

    Name of
Authorized Signatory: Brendan
O'Neil                                                                                                

    Title of
Authorized Signatory: President and Chief
Investment Officer

    

    

    

    

    [SIGNATURE
PAGES CONTINUE]

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    [HOLDER'S
SIGNATURE PAGE TO TNXI AMENDMENT AGREEMENT]

     

     

    IN
WITNESS WHEREOF, the undersigned have caused this Amendment Agreement to be duly
executed by their respective authorized signatories as of the date first
indicated above.

     

    

    Name of
Holder: Enable
Opportunity Partners LP

    Signature of Authorized Signatory of
Holder: /s/
Brendan
O'Neil                                                                                                                                          

    Name of
Authorized Signatory: Brendan
O'Neil                                                                                                

    Title of
Authorized Signatory: President and Chief
Investment Officer

    

    

    

    

    [SIGNATURE
PAGES CONTINUE]

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     [HOLDER'S
SIGNATURE PAGE TO TNXI AMENDMENT AGREEMENT]

     

     

    IN
WITNESS WHEREOF, the undersigned have caused this Amendment Agreement to be duly
executed by their respective authorized signatories as of the date first
indicated above.

     

    

    Name of
Holder: Pierce
Diversified Strategy Maser Fund LLC, ena

    Signature of Authorized Signatory of
Holder: /s/
Brendan
O'Neil                                                                                                                                          

    Name of
Authorized Signatory: Brendan
O'Neil                                                                                                

    Title of
Authorized Signatory: President and Chief
Investment OfficerEXHIBIT 10.2

 Exhibit 10.2 
 EMPLOYMENT AGREEMENT WITH GEORGE STRAYTON 
 AMENDED AND RESTATED 
 EMPLOYMENT AGREEMENT 
 This Amended and Restated Employment Agreement (“Agreement”) is made and entered into as of the 8th day of December, 2008
(“Effective Date”), by and between Provident Bank, a savings bank organized and existing under the laws of the United States of America and having its executive offices at 400 Rella Boulevard, Montebello, New York 10901 (“Bank”),
and George Strayton (“Executive”). The Bank is a wholly-owned subsidiary of Provident New York Bancorp (“Company”). 
 WITNESSETH: 
 WHEREAS, Executive currently serves as an executive officer of the Bank pursuant to the Amended and
Restated Employment Agreement entered into as of October 31, 2006 (the “Prior Agreement”); and 
 WHEREAS, in order to
comply with new Internal Revenue Code Section 409A, the Prior Agreement is being restated and is superseded in its entirety by this Agreement. 
 NOW, THEREFORE, in consideration of the premises and the mutual covenants and obligations hereinafter set forth, the Bank and Executive hereby agree as follows: 
 1. Employment. The Bank hereby agrees to continue the employment of the Executive and the Executive hereby agrees to continue such
employment, during the period and upon the terms and conditions set forth in this Agreement. All actions that may be undertaken by the Bank with respect to the Executive’s employment with the Bank pursuant to this Agreement shall be undertaken
by the Board of Directors of the Bank. 
 2. Employment Period. 
 (a) Three Year Contract; Daily Renewal. The Executive’s period of employment with the Bank (“Employment Period”) shall begin on the
Effective Date and shall renew daily, such that the remaining unexpired term of the Agreement shall always be thirty-six (36) months, until the date that the Bank gives the Executive written notice of non-renewal (“Non-Renewal
Notice”). The Employment Period shall end on the date that is thirty-six (36) months after the date of the Non-Renewal Notice, unless the parties agree that the Employment Period shall end on an earlier date. Notwithstanding the preceding
provisions of this Section 2(a), the Employment Period under this Agreement shall automatically terminate on the last day of the calendar month in which the Executive attains age 68. 
 (b) Annual Performance Evaluation. On either a fiscal year or calendar year basis, (consistently applied from year to year), the Bank shall
conduct an annual evaluation of the Executive’s performance. The annual performance evaluation proceedings shall be included in the minutes of the Board meeting that next follows such annual performance review. 

 (c) Continued Employment Following Termination of Employment Period. Nothing in this Agreement
shall mandate or prohibit a continuation of the Executive’s employment following the expiration of the Employment Period upon such terms and conditions as the Bank and the Executive may mutually agree. 
 3. Duties. 
 (a) Title; Reporting Responsibility. The Executive shall serve as the President and Chief Executive Officer of the Bank, with power, authority and responsibility commensurate with those of a senior officer. As Chief Executive
Officer, the Executive shall directly report to the Board. The Executive shall also be nominated as a member of the Board of Directors of the Bank, subject to election by shareholders. 
 (b) Time Commitment. The Executive shall devote his full business time and attention to the business and affairs of the Bank and shall use his
best efforts to advance the interests of the Bank. 
 4. Annual Compensation. 
 (a) Base Salary. 
 (i) Annual
Salary. In consideration for the services performed by the Executive under this Agreement, the Bank shall pay to the Executive an annual salary (“Base Salary”). The Base Salary shall be paid in approximately equal installments in
accordance with the Bank’s customary payroll practices. The Bank shall review the Executive’s Base Salary at least annually for possible upward adjustment, but, the Executive’s Base Salary shall not be reduced without the
Executive’s consent. For the fiscal year that began on October 1, 2005, the Executive’s Base Salary is $450,000. 
 (ii)
Automatic Adjustment Following a Change in Control. For each calendar year that begins on or after the date on which a Change in Control (as defined in Section 9) occurs, and continuing through the remainder of the Employment Period, the
Executive’s Base Salary shall automatically increase by the greater of (1) six percent (6%) or (2) the average annual rate of base salary increases provided for the immediately preceding calendar year to individuals employed by
the Bank at the level of assistant vice president or above (but excluding the Executive from the determination of such average). 
 (b)
Incentive Compensation. The Executive shall be eligible to participate in any bonus and incentive compensation programs (not including equity compensation programs, which are covered by Section 4(c) of this Agreement) established by the
Bank from time to time for senior executive officers, including the Bank’s Executive Officer Management Incentive Program. Compensation payable pursuant to such programs shall be referred to herein as “Incentive Compensation.” For the
fiscal year that ended on September 30, 2005, the Executive received Incentive Compensation of $100,800. 
  

 2 

 (c) Equity Compensation. The Executive shall be eligible to participate in any equity compensation
programs established by the Bank from time to time for senior executive officers, including, but not limited to, the 2004 Stock Incentive Plan. 
 (d) Employee Benefit Plans; Paid Time Off 
 (i) Benefit Plans. During the Employment Period, the
Executive shall be an employee of the Bank and shall be entitled to participate in the Bank’s (i) tax-qualified retirement plans (i.e., the Bank’s Defined Benefit Pension Plan, 401(k) Plan and Employee Stock Ownership Plan (including,
for purposes of this Agreement, any successor plans thereto)); (ii) nonqualified retirement plans (i.e., the Bank’s 2005 Supplemental Executive Retirement Plan (including any predecessor or successor plan thereto, the “SERP”));
(iii) group life, health and disability insurance plans; and (iv) any other employee benefit plans and programs in accordance with the Bank’s customary practices, provided he is a member of the class of employees authorized to
participate in such plans or programs. 
 (ii) Paid Time Off. The Executive shall be entitled to a minimum of five (5) weeks of
paid vacation time each year during the Employment Period (measured on a fiscal or calendar year basis, in accordance with the Bank’s usual practices), as well as sick leave, holidays and other paid absences in accordance with the Bank’s
policies and procedures for senior executives. Any unused paid time off during an annual period shall be treated in accordance with the Bank’s personnel policies as in effect from time to time. 
 5. Outside Activities and Board Memberships 
 During the term of this Agreement, the Executive shall not, directly or indirectly, provide services on behalf of any competitive financial institutions, any insurance company or agency, any mortgage or loan broker or
any other competitive entity or on behalf of any subsidiary or affiliate of any such competitive entity, as an employee, consultant, independent contractor, agent, sole proprietor, partner, joint venturer, corporate officer or director; nor shall
the Executive acquire by reason of purchase during the term of this Agreement the ownership of more than 5% of the outstanding equity interest in any such competitive entity. In addition, during the term of this Agreement, the Executive shall not,
directly or indirectly, acquire a beneficial interest, or engage in any joint venture in real estate with the Bank. Subject to the foregoing, and to the Executive’s right to continue to serve as an officer and/or director or trustee of any
business organization as to which he was so serving on the Effective Date of this Agreement, the Executive may serve on boards of directors of unaffiliated corporations, subject to Board approval, which shall not be unreasonably withheld, and such
services shall be presumed for these purposes to be for the benefit of the Bank. Except as specifically set forth herein, the Executive may engage in personal business and investment activities, including real estate investments and personal
investments in the stocks, securities and obligations of other financial institutions (or their holding companies). Notwithstanding the foregoing, in no event shall the Executive’s outside activities, services, personal business and investments
materially interfere with the performance of his duties under this Agreement. 
  

 3 

 6. Working Facilities and Expenses 
 (a) Working Facilities. The Executive’s principal place of employment shall be at the Bank’s principal executive office or at such other
location upon which the Bank and the Executive may mutually agree. 
 (b) Expenses. 
 (i) Ordinary Expenses. The Bank shall reimburse the Executive for his ordinary and necessary business expenses, incurred in connection with the
performance of his duties under this Agreement, upon presentation to the Bank of an itemized account of such expenses in such form as the Bank may reasonably require and subject to the following conditions: (A) the expenses reimbursed by the
Bank in one calendar year shall not affect the expenses paid or reimbursed by the Bank in another calendar year, (B) reimbursement for an expense shall be made within a reasonable period of time following the date on which the Bank receives the
Executive’s documentation of the expense, provided that no reimbursement for an expense shall be made after the last day of the calendar year following the calendar year in which the expense was incurred. 
 (ii) Automobile. The Bank shall provide the Executive with an automobile suitable to the Executive’s position and such automobile may be used
by the Executive in carrying out his duties under this Agreement, including commuting between his residence and his principal place of employment and other personal use. The Bank shall be responsible for the cost of maintenance and servicing such
automobile and for insurance, gasoline and oil for such automobile. The Executive shall be responsible for the payment of any taxes on account of his personal use of such automobile. 
 7. Termination of Employment with Bank Liability 
 (a) Reasons for Termination. In the event that the Executive’s employment with the Bank shall terminate during the Employment Period on account of: 
 (i) The Executive’s voluntary resignation from employment with the Bank within one year after any event constituting “Good Reason”, where
“Good Reason” means any of the following events (provided that, in the case of (A), (B), (D) and (F), no such event shall constitute “Good Reason” unless the Executive shall have given written notice of such event to the
Bank within ninety (90) days after the initial occurrence thereof 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)): 
  

	 	(A)	the failure to re-appoint the Executive to the officer position set forth under Section 3 and, with respect to the Executive’s service as a director, the failure to
re-nominate the Executive for election to the Board; 

  

 4 

	 	(B)	a material change in Executive’s functions, duties, or responsibilities, including those with respect to the Company, which change would cause Executive’s position to
become one of lesser responsibility, importance, or scope; 

  

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

  

	 	(D)	a material breach of this Agreement by the Bank; or 

  

	 	(E)	a Change in Control Date of the Bank as defined in Section 9, except to the extent that Section 7(c) hereof would apply to the Executive’s termination of employment,
in which event Executive will be deemed to have terminated his employment pursuant to the provisions of Section 7(c) instead; 

  

	 	(F)	the effective date of a Non-Renewal Notice, delivered by the Bank to the Executive pursuant to Section 2(a); or 

  

	 	(ii)	the discharge of the Executive by the Bank for any reason other than for “Cause” as defined in Section 8(a); or 

  

	 	(iii)	the termination of the Executive’s employment with the Bank as a result of the Executive’s “total and permanent disability” which, for purposes of this
Agreement, shall be determined by the Bank, based upon competent and independent medical evidence that the Executive’s physical or mental condition is such that he is totally and permanently incapable of performing the essential tasks of his
position hereunder, and, to the extent that any payments hereunder on account of disability are subject to Section 409A of the Internal Revenue Code of 1986 (“Code”), “disability” shall have the meaning set forth in Code
Section 409A and the regulations thereunder; 

 then the Bank shall provide the benefits and pay to the Executive the amounts provided for
under Section 7(b). 
 (b) Severance Pay. Subject to the limitations set forth in Sections 7(e) and (f) below, upon the
termination of the Executive’s employment with the Bank under circumstances described in Section 7(a) of this Agreement, the Bank shall pay to the Executive (or, in the event of the Executive’s death after the event described in
Section 7(a) has occurred, the Bank shall pay to the Executive’s surviving spouse, beneficiary or estate) an amount equal to the following, provided that, in each case where an amount to be paid below is the “present value” of an
amount, such “present value” shall be determined using a discount rate that is equal to the short-term “applicable federal rate” with monthly compounding published by the Internal Revenue Service for the month preceding the
Executive’s termination of employment: 
  

	 	(i)	within 60 days following his termination of employment, his earned but unpaid Base Salary as of the date of his termination of employment with the Bank; 

  

 5 

	 	(ii)	the benefits, if any, to which he is entitled as a former employee under the Bank’s employee benefit plans, payable in accordance with the terms of such plans;

  

	 	(iii)	continued life insurance coverage and non-taxable health insurance benefits which will provide the Executive with coverage for the remaining unexpired Employment Period equivalent
to the coverage to which he would have been entitled if he had continued working for the Bank during the remaining unexpired Employment Period with the same Base Salary as was in effect on the date of his termination of employment
and life insurance coverage and non-taxable health insurance benefits for the remainder of the Executive’s lifetime and the lifetime of the Executive’s spouse, equal to the greater of (A) the insurance coverage
provided to retirees of the Bank as of the Effective Date of this Agreement or (B) the insurance coverage provided to retirees of the Bank as of the effective date of the Executive’s termination of employment with the Bank;

  

	 	(iv)	within 60 days following his termination of employment, a lump sum payment, as liquidated damages, in an amount equal to the present value of the Base Salary that the Executive
would have earned (but offset by any payments made under any short-term or long-term disability plan or program maintained by the Bank) if he had continued working for the Bank and serving as a director for the remaining unexpired Employment Period
at his final rate of Base Salary; 

  

	 	(v)	within 60 days following his termination of employment with the Bank, a lump sum payment in an amount equal to the excess, if any, of: (A) the present value of the benefits to
which the Executive would be entitled under the Bank’s Defined Benefit Pension Plan if he had the additional years of service that he would have had accrued if he had continued working for the Bank during the remaining unexpired Employment
Period earning his final rate of Base Salary during that period, over (B) the present value of the benefits to which he is actually entitled under the Bank’s Defined Benefit Pension Plan as of the date of his termination;

  

	 	(vi)	 within 60 days following his termination of employment with the Bank, a lump sum payment in an amount equal to the present value of the Bank’s contributions
that would have been made on his behalf under the Bank’s 401(k) Plan and Employee Stock Ownership Plan if the Executive had continued working for the Bank for the remaining unexpired Employment 

  

 6 

	 	 
Period assuming (A) the Executive earned his final rate of Base Salary during that period; (B) the Executive made the maximum amount of employee
contributions permitted, if any, under such plans; and (C) the Bank’s contributions are at least equal to the rate of contributions made to the Plan during the plan year immediately preceding his termination of employment;

  

	 	(vii)	within 60 days following his termination of employment with the Bank, a lump sum payment in an amount equal to the excess, if any, of (A) the present value of the benefits to
which he would be entitled under the SERP (and any other deferred compensation plan for management or highly compensated employees that are maintained by the Bank), if he had continued working for the Bank for the remaining unexpired Employment
Period following his termination of employment earning his final rate of Base Salary during the remaining unexpired Employment Period, over (B) the present value of the benefits to which he is actually entitled under any such plan, as of the
date of his termination of employment with the Bank; 

  

	 	(viii)	within 60 days following his termination of employment with the Bank, a lump sum payment in an amount equal to three (3) times the average of the prior three (3) years
Incentive Compensation earned or received by him under all incentive compensation plans or programs adopted and maintained by the Bank; and 

  

	 	(ix)	stock options shall vest in accordance with the terms of the stock plan under which they were granted. 

 (c) Change in Control. Notwithstanding the foregoing, upon the termination of the Executive’s employment with the Bank following a Change in
Control, the Bank: (1) shall provide the employee benefits described in Section 7(b)(iii) for a period of thirty-six (36) months following the termination of employment date; (2) shall pay the Executive (or in the event of his
death, to his surviving spouse or such other beneficiary as the Executive may designate in writing, or if there is neither, to his estate), the amounts described in Sections 7(b)(iv) through 7(b)(viii) above as if the “remaining unexpired
Employment Period” under the Agreement is thirty-six (36) months from the termination of employment date; and (3) shall credit the Executive with full vesting of all stock or stock-based awards granted to the Executive under any plan
adopted by the Bank or the Company. The Company and the Executive have entered into a separate agreement with respect to reimbursing the Executive for any additional income or excise taxes that may apply, on a grossed up basis, with respect to any
“excess parachute payment” under Code Section 280G. Notwithstanding anything to the contrary herein, to the extent that payments and benefits are payable pursuant to this Section 7(c), no payments or benefits shall be paid to
Executive under Sections 7(b)(iii) through 7(b)(viii). 
 (d) Damages. The Bank and the Executive hereby stipulate that the damages
which may be incurred by the Executive following any such termination of employment are not capable of accurate measurement as of the Effective Date of this Agreement and that such liquidated damages constitute reasonable damages under the
circumstances. 
  

 7 

 (e) OTS Limitation on Severance Pay. Notwithstanding the foregoing, to the extent required by
regulations or interpretations of the Office of Thrift Supervision, all severance payments under the Agreement shall be reduced not to exceed three (3) times the Executive’s average annual compensation (as defined in such regulations or
interpretations) over the most recent five (5) taxable years. 
 (f) Section 409A Delay in Payment. 
  

	 	(i)	Notwithstanding the foregoing provisions of this Agreement, if a payment under this Agreement is due to a “separation from service” for purposes of the rules under Title
26 of the Code of Federal Regulations (the “Treasury Regulations”) Section 1.409A-3(i)(2) (the “Six Month Delay Rule”) and the Executive is determined to be a “specified employee” (as determined under Treasury
Regulation Section 1.409A-1(i) and related Company procedures), such payment shall, to the extent necessary to comply with the requirements of Code Section 409A, be made on the later of the date specified by the foregoing provisions of
this Section 7 or the date that is six months after the date of the Executive’s separation from service. If any cash payment is delayed pursuant to this Section 7(f)(i), interest on such delayed payment (determined using the
short-term “applicable federal rate” compounded monthly as published by the Internal Revenue Service for the month preceding the Executive’s separation from service) shall accrue and be paid at the same time as the delayed payment.

  

	 	(ii)	To the extent that the Six Month Delay Rule applies to the provision of life insurance coverage to the Executive as described in Section 7(b)(iii) (the “Life Insurance
Coverage”), such Life Insurance Coverage shall nonetheless be provided to the Executive during the first six months following his separation from service (the “Six Month Period”), provided that, during such Six-Month Period, the
Executive pays to the Bank, on a monthly basis in advance, an amount equal to the monthly cost of such Life Insurance Coverage. The Bank shall reimburse the Executive for any such payments made by the Executive in a lump sum not later than 60
days following the sixth month anniversary of the Executive’s separation from service. For purposes of this Section 7(f)(ii), “monthly cost” means the minimum dollar amount which, if paid by the Executive on a monthly basis in
advance, results in the Executive not being required to recognize any federal income tax on receipt of the Life Insurance Coverage during the Six Month Period. 

 8. Termination without Additional Bank Liability 
 (a) Termination for Cause. 
 (i) The Bank may terminate the Executive’s employment at any time,
but any 

  

 8 

 
termination other than termination for “cause,” as defined herein, shall not prejudice the Executive’s right to compensation or other benefits
under the Agreement. The Executive shall have no right to receive compensation or other benefits for any period after termination for “cause.” Termination for “cause” shall include termination because of the Executive’s
personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving personal profit, breach of the Bank’s Code of Ethics, material violation of the Sarbanes-Oxley requirements for officers of public companies that in the
reasonable opinion of the Board will likely cause substantial financial harm or substantial injury to the reputation of the Company or the Bank, willfully engaging in actions that in the reasonable opinion of the Board will likely cause substantial
financial harm or substantial injury to the business reputation of the Company or Bank, intentional failure to perform stated duties, willful violation of any law, rule or regulation (other than routine traffic violations or similar offenses) or
final cease-and-desist order, or material breach of any provision of the contract. 
 (ii) For purposes of this Section, no act
or failure to act, on the part of the Executive, shall be considered “willful” unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive’s action or omission was in the
best interests of the Bank. Any act, or failure to act, based upon the direction of the Board or based upon the advice of counsel for the Bank shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in
the best interests of the Bank. 
 (iii) If the Bank wishes to terminate the Executive’s employment for “cause,” such
determination shall require the affirmative vote of three-fourths of the members of the Board and such vote shall not be made prior to the expiration of the 60-day period following the date on which the Board shall, by written notice to the
Executive, furnish him a statement of its grounds for proposing to make such determination, during which period the Executive shall be afforded a reasonable opportunity to make oral and written presentations to the members of the Board, and to be
represented by his legal counsel at such presentations, to refute the grounds for proposed termination. 
 (b) Death; Voluntary
Resignation Without Good Reason; Retirement. In the event that the Executive’s employment with the Bank shall terminate during the Employment Period on account of any of the reasons set forth in this Section 8(b), then the Bank shall
have no further obligations under this Agreement, other than the payment to the Executive, within sixty (60) days after the termination of his employment, of his earned but unpaid salary as of the date of the termination of his employment, and
the provision of such benefits, if any, to which he is entitled as a former employee under the Bank’s employee benefit plans and programs and compensation plans and programs in accordance with the terms of such plans and programs. Termination
of employment under this Section 8(b) shall mean termination of employment due to the following events: 
  

	 	(i)	The Executive’s death; 

  

	 	(ii)	The Executive’s voluntary resignation from employment with the Bank for any reason other than the “Good Reasons” specified in Section 7(a)(i); or

  

 9 

	 	(iii)	The automatic termination of the Employment Period as of the last day of the calendar month following the Executive’s attainment of age 68, which shall be treated as his
“retirement date” (i.e., “retirement” is not a “Good Reason” termination as described in Section 7(a)(i) that would entitle the Executive to severance benefits under Section 7(b)). 

 9. Change in Control 
 (a) For purposes of this Agreement, the term “Change in Control” shall mean: 
  

	 	(i)	a change in control of a nature that would be required to be reported in response to Item 5.01(a) of the current report on Form 8-K, as in effect on the date hereof, pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”); or 

  

	 	(ii)	a change in control of the Bank or the Company within the meaning of the Home Owners Loan Act, as amended (“HOLA”), and applicable rules and regulations promulgated
thereunder, as in effect at the time of the Change in Control; or 

  

	 	(iii)	any of the following events, upon which a Change in Control shall be deemed to have occurred: 

 (A) any “person” (as the term is used in Sections 13(d) and 14(d) of the Exchange Act) 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 except for any securities purchased by
the Bank’s employee stock ownership plan or trust; or 
 (B) 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 same Nominating Committee serving under an Incumbent Board, shall be, for purposes of this subsection (B),
considered as though he were a member of the Incumbent Board; or 
 (C) a plan of reorganization, merger, consolidation, sale
of all or substantially all the assets of the Bank or the Company or similar transaction occurs in which the Bank or Company is not the surviving institution; or 
  

 10 

 (D) a proxy statement is issued soliciting proxies from stockholders of the Company by
someone other than the current management of the Company, seeking stockholder approval of a plan of reorganization, merger or consolidation of the Company or similar transaction with one or more corporations as a result of which the outstanding
shares of the class of securities then subject to the plan are to be exchanged for or converted into cash or property or securities not issued by the Company; or 
 (E) a tender offer is made for 25% or more of the voting securities of the Company and the shareholders owning beneficially or of record
25% or more of the outstanding securities of the Company have tendered or offered to sell their shares pursuant to such tender offer and such tendered shares have been accepted by the tender offeror. 
 (b) For purposes of this Agreement, the term “Change in Control Date” shall mean the first date during the Employment Period on which a Change
in Control occurs. Anything in this Agreement to the contrary notwithstanding, if the Executive’s employment with the Bank is terminated and if it is reasonably demonstrated by the Executive that such termination of Employment (i) was at
the request of a third party who has taken steps reasonably calculated to effect a Change in Control or (ii) otherwise arose in connection with or anticipation of a Change in Control, then for all purposes of this Agreement the “Change in
Control Date” shall mean the date immediately prior to the date of such termination of employment. 
 10.
Confidentiality. Unless he obtains prior written consent from the Bank, the Executive shall keep confidential and shall refrain from using for the benefit of himself, or any person or entity other than the Bank, the
Company or any entity which is a subsidiary or affiliate of the Bank or the Company or of which the Bank or the Company is a subsidiary or affiliate, any material document or information obtained from the Bank, the Company or from any of their
respective parents, subsidiaries or affiliates, in the course of his 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 his own) until the same ceases to be material (or becomes so ascertainable or available); provided, however, that nothing in this Section shall prevent the
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. 
 11. Non-Solicitation; Non-Competition; Post-Termination
Cooperation. 
 (a) The Executive hereby covenants and agrees that, for a period of one year following his termination of
employment with the Bank, he shall not, without the written consent of the Bank, 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 

  

 11 

 
officer or employee of the Bank, the Company 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 business whatsoever that competes with the business of the Bank or the Company or any of their direct or indirect subsidiaries or affiliates or has
headquarters or offices within the counties in which the Bank or the Company has business operations or has filed an application for regulatory approval to establish an office; 
 (ii) become an officer, employee, consultant, director, independent contractor, agent, sole proprietor, joint venturer, greater than 5% equity-owner or
stockholder, partner or trustee of any savings bank, savings and loan association, savings and loan holding company, credit union, bank or bank holding company, insurance company or agency, any mortgage or loan broker or any other entity competing
with the Bank or its affiliates in the same geographic locations where Provident Bank or its affiliates has material business interests; provided, however, that this restriction shall not apply if the Executive’s employment is terminated
following a Change in Control; or 
 (iii) solicit, provide any information, advice or recommendation or take any other action intended (or
that a reasonable person acting in like circumstances would expect) to have the effect of causing any customer of the Bank or the Company to terminate an existing business or commercial relationship with the Bank or the Company. 
 (b) Executive shall, upon reasonable notice, furnish such information and assistance to the Bank and/or the Company, as may reasonably be required by the
Bank and/or the Company, in connection with any litigation in which it or any of its subsidiaries or affiliates is, or may become, a party; provided, however, that Executive shall not be required to provide information or assistance with respect to
any litigation between the Executive and the Bank, the Company or any of its subsidiaries or affiliates. 
 (c) All payments and benefits to
the Executive under this Agreement shall be subject to the Executive’s compliance with this Section. The parties hereto, recognizing that irreparable injury will result to the Bank, its business and property in the event of the Executive’s
breach of this Section, agree that, in the event of any such breach by the Executive, the Bank will be entitled, in addition to any other remedies and damages available, to an injunction to restrain the violation hereof by the Executive and all
persons acting for or with the Executive. The Executive represents and admits that the Executive’s experience and capabilities are such that the Executive can obtain employment in a business engaged in other lines and/or of a different nature
than the Bank, and that the enforcement of a remedy by way of injunction will not prevent the Executive from earning a livelihood. Nothing herein will be construed as prohibiting the Bank and the Company from pursuing any other remedies available to
them for such breach or threatened breach, including the recovery of damages from the Executive. 
 12. Additional Termination and
Suspension Provisions 
 (a) If the 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 

  

 12 

 
Deposit Insurance Act, as amended (12 U.S.C. 1818(e)(3) and (g)(1)), all obligations of 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 Bank may, in its discretion (but subject in all events to the requirements of Code Section 409A), (i) pay the Executive all of the compensation
withheld while the Bank’s obligations under this Agreement were suspended and (ii) reinstate (in whole) any of the Bank’s obligations which were suspended, and in exercising such discretion, 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 the Executive and to reinstate any suspended obligations of the Bank. 
 (b) If the 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 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 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 Director of the OTS
(the “Director”) or his designee, 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 Director or his designee, at the time the Director or his designee approves a supervisory merger to resolve problems related to operation of the Bank or when the Bank is determined by the Director to be in an unsafe or unsound condition. Any
rights of the parties that have already vested, however, shall not be affected by such action. 
 (e) If any regulation applicable to the
Bank shall hereafter be adopted, amended or modified or if any new regulation applicable to 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 the 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.

  

 13 

 13. Arbitration; Legal Fees. 
 (a) Arbitration. In the event that any dispute should arise between the parties as to the meaning, effect, performance, enforcement, or other issue
in connection with this Agreement, which dispute cannot be resolved by the parties, the dispute shall be decided by final and binding arbitration of a panel of three arbitrators. Proceedings in arbitration and its conduct shall be governed by the
rules of the American Arbitration Association (“AAA”) applicable to commercial arbitrations (the “Rules”) except as modified by this Section. The Executive shall appoint one arbitrator, the Bank shall appoint one arbitrator, and
the third shall be appointed by the two arbitrators appointed by the parties. The third arbitrator shall be impartial and shall serve as chairman of the panel. The parties shall appoint their arbitrators within thirty (30) days after the demand
for arbitration is served, failing which the AAA promptly shall appoint a defaulting party’s arbitrator, and the two arbitrators shall select the third arbitrator within fifteen (15) days after their appointment, or if they cannot agree or
fail to so appoint, then the AAA promptly shall appoint the third arbitrator. The arbitrators shall render their decision in writing within thirty (30) days after the close of evidence or other termination of the proceedings by the panel, and
the decision of a majority of the arbitrators shall be final and binding upon the parties, nonappealable, except in accordance with the Rules and enforceable in accordance with the applicable state law. Any hearings in the arbitration shall be held
in Rockland County, New York unless the parties shall agree upon a different venue, and shall be private and not open to the public. Each party shall bear the fees and expenses of its arbitrator, counsel, and witnesses, and the fees and expenses of
the third arbitrator shall be shared equally by the parties. The costs of the arbitration, including the fees of AAA, shall be borne as directed in the decision of the panel. 
 (b) Legal Fees. Unless it is determined that a claim made by the Executive was either
frivolous or made in bad faith, the Bank agrees to pay as incurred (but in any event such payments shall be made within 2  1/2
months after the end of the calendar year in which the amount was incurred), to the full extent permitted by law, all legal fees and expenses which the Executive may reasonably incur as a result of or in connection with his consultation with legal
counsel or arising out of any action, suit, proceeding or contest (regardless of the outcome thereof) by the Bank, the Executive or others regarding the validity or enforceability of, or liability under, any provision of this Agreement or any
guarantee of performance thereof (as a result of any contest by the Executive about the amount of any payment pursuant to this Agreement), plus in each case interest, at the applicable federal rate provided for in Code Section 7872(f)(2)(A), on
any payment delayed by more than sixty (60) days following the receipt by the Bank and/or the Company of the Executive’s request for the payment of fees or expenses under this Section 13(b). 
 14. Indemnification and Insurance. 
 (a) The Executive (including his heirs, executors and administrators) shall be provided with coverage under a standard directors’ and officers’ liability insurance policy at the Bank’s expense, and the
Executive (and his heirs, executors and administrators) shall be indemnified 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 

  

 14 

 
involved by reason of his having been an officer of the Bank (whether or not he continues to be an officer at the time of incurring such expenses or
liabilities and for a period of six years following his termination of employment with the Bank), such expenses and liabilities to include, but not be limited to, judgments, court costs and attorneys’ fees and the cost of reasonable settlements
(such settlements must be approved by the Board). Any indemnification shall be made consistent with OTS Regulations and Section 18(k) of the Federal Deposit Insurance Act, 12 U.S.C. §1828(k), and the regulations issued thereunder in 12
C.F.R. Part 359. 
 (b) Notwithstanding the foregoing, no indemnification shall be made by the Bank unless the Bank gives the OTS at least 60
days’ notice of its intention to make such indemnification. Such notice shall state the facts on which the action arose, the terms of any settlement, and any disposition of the action by a court. Such notice, a copy thereof, and a certified
copy of the resolution containing the required determination by the Board shall be sent to the Regional Director of the OTS, who shall promptly acknowledge receipt thereof. The notice period shall run from the date of such receipt. No such
indemnification shall be made if the OTS advises the Bank in writing within such notice period, of its objection thereto. 
 15.
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 (i) if sent by messenger, upon personal delivery to the party to whom the notice is directed; (ii) if sent by reputable overnight courier, one business day after delivery
to such courier; (iii) if sent by facsimile, upon electronic or telephonic confirmation of receipt from the receiving facsimile machine and (iv) 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 the Executive:	 	  
	  	
		 	  
	  	
		 	  
	  	
		 		  	
	If to the Bank:	 	Provident Bank	  	
		 	400 Rella Boulevard	  	
		 	Montebello, New York 10901	  	
		 	Attention: Chairman of the Board	  	

 16. Amendment. No modifications of this Agreement shall be valid
unless made in writing and signed by the parties hereto. 
 17. Miscellaneous. 
 (a) Successors and Assigns. This Agreement will inure to the benefit of and be binding upon the Executive, his legal representatives and estate and
intestate distributees, and the Bank, its 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

  

 15 

 
of the Bank may be sold or otherwise transferred. Any such successor of the Bank shall be deemed to have assumed this Agreement and to have become obligated
hereunder to the same extent as the Bank, and the 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 the Executive pursuant to this Agreement, or otherwise are subject to all applicable banking laws and
regulations, including, without limitation, 12 USC 1828 (i) and any regulations promulgated thereunder. 
 (f) 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. 
 (g) 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, including without limitation, the employment agreement between the Executive and the Bank and the
Company dated as of October 31, 2006. 
 (h) Source of Payments. All payments provided in this Agreement shall be timely paid in
cash or check from the general funds of the Bank. 
  

 16 

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

							
		 		 	 EXECUTIVE

			
	 December 12, 2008
	 		 	 /s/ George Strayton

	Date	 		 	George Strayton
			
		 		 	 PROVIDENT BANK

				
	 December 12, 2008
	 		 	By:	 	 /s/ William F. Helmer

	Date	 		 		 	Chairman of the Board

  

 17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00150-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00150-of-00352.parquet"}]]