Document:

Exhibit 10.1

 

Metropolitan
Bank Holding Corporation

 

AND
MetropOLitan commercial bank

 

EMPLOYMENT
AGREEMENT

 

THIS EMPLOYMENT
AGREEMENT (“Agreement”) is made effective as of April 25, 2018 (the “Commencement
Date”), by and between Metropolitan Commercial Bank, a commercial bank with its main office at 99 Park Avenue,
New York, New York 10016 (the “Bank”) and a wholly owned subsidiary of Metropolitan Bank Holding
Corp., a New York corporation with its principal place of business also located at 99 Park Avenue, New York, New York 10016
(the “Company”), and Scott Lublin, a natural person residing in East Brunswick, New Jersey
(“Executive”). The Company is a signatory to this Agreement for the sole purpose of guaranteeing
the payments hereunder.

 

WHEREAS, Executive
has accepted a position with the Bank as Executive Vice President and Chief Lending Officer of the Bank; and

 

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

 

WHEREAS, the Board
of Directors of the Bank (the “Bank’s Board”) has determined that it is in the best interests of
the Bank that Executive serve as the Bank’s Executive Vice President and Chief Lending Officer, pursuant to this Agreement,
which will supersede in its entirety any and all other agreements and understandings between Executive and the Bank or the Company
regarding Executive’s employment by the Bank; and

 

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

 

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

 

1.            POSITION AND RESPONSIBILITIES.

 

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

 

    	 

    	 

    

  

(b)          Responsibilities.
As Executive Vice President and Chief Lending Officer of the Bank, Executive shall perform all duties and have all powers that
are commonly incident to such offices or which, consistent with such offices, may be delegated to Executive by the President and
Chief Executive Officer of the Bank, including but not limited to the day to day lending operations of the Bank. During the period
of Executive’s employment under this Agreement, except for periods of absence occasioned by illness, vacation, or other reasonable
leaves of absence, Executive shall devote substantially all of his business time, attention, skill and efforts to the faithful
performance of his duties under this Agreement, including activities and services related to the organization, operation and management
of the the Bank and its affiliates, as well as participation in community, professional and civic organizations; provided,
however, that, with the approval of the Bank’s Board, as evidenced by a resolution thereof, Executive may serve, or
continue to serve, on the boards of directors of, and hold any other offices or positions in, any such other companies or organizations
that, in the judgment of the Bank’s Board, will not present any conflict of interest with the Bank or its affiliates, or
materially negatively impact or interfere with Executive’s performance of his duties pursuant to this Agreement.

 

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

 

2.            TERM
OF EMPLOYMENT.

 

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

 

(b)          Extension
of Term. The Term of Executive’s employment under this Agreement shall be automatically extended by one day upon completion
of each day of Executive’s employment hereunder, such that a constantly extending twenty-four (24) calendar month Term shall
remain in effect hereunder, provided, however, that the Bank may elect at any time, for any reason or no reason,
to discontinue such automatic extension, by delivery of a written notice of such discontinuation to Executive, prepared and delivered
in accordance with the provisions of Section 8(a) below (any such notice, a “Non-renewal Notice”), in
which event the Term of Executive’s employment under this Agreement shall no longer be automatically extended for each day
of employment hereunder, but rather shall expire on a fixed Expiration Date, such being the third anniversary of the date of the
Non-renewal Notice, as specified in such notice. During the period commencing not more than sixty (60) and not less than thirty
(30) days prior to each anniversary of the Commencement Date of this Agreement (each, an “Anniversary Date”),
assuming no prior Non-renewal Notice has been delivered by the Bank to Executive, the Bank’s Board will conduct a review
of Executive’s performance, and in connection therewith, will make a determination as to whether the automatic extension
of the Term of Executive’s employment, as described in the preceding sentence, will be permitted to continue, or alternatively,
whether such automatic extension of the Term will be discontinued, such that a fixed Expiration Date will be established.

 

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

 

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 3.           COMPENSATION
AND BENEFITS.

 

(a)           Base Salary.
During the Term of Executive’s employment under this Agreement, the Bank shall pay to Executive for all services rendered
by Executive under this Agreement a base salary (“Base Salary”) at the initial rate of $400,000 per annum,
subject to possible increases from time to time as provided in the ensuing sentence of this paragraph (a), which Base Salary will
be payable in accordance with the customary payroll practices of the Bank. The Bank’s Board shall review not less often than
annually the then current per annum rate of Executive’s Base Salary, based upon such factors as each board deems relevant,
and in connection with any such review, may enter into negotiations with Executive to increase Executive’s Base Salary above
its then current per annum rate (in which event the new base salary shall become Executive’s “Base Salary” under
this Agreement), or to maintain Executive’s Base Salary at its then current per annum rate. Under no circumstances, however,
may the Bank’s Board decrease Executive’s Base Salary to a per annum rate below the per annum rate then in effect,
unless Executive shall have expressly consented in advance in writing to such decrease, or based upon a Bank-wide decrease to most
executive officers compensation due to the economic performance of the Company or the Bank, and provided that the percentage decrease
to Executive’s Base Salary shall not be in excess of the average decrease to the other executive officer’s base salaries.
In the absence of any review or other action by the Bank’s Board, Executive shall continue to receive his Base Salary at
the per annum rate then in effect, as last approved by the Bank’s Board or as set forth in this Section 3. The parties agree
that the negotiations regarding Executive’s Base Salary shall be concluded no later than February 28 of the year, retroactive
to January 1 of such year (with any amounts owed from January 1 to the date of determination of the new Base Salary paid in the
next payroll immediately following such determination).

 

(b)          Bonus.
Executive shall be entitled to an annual cash bonus payment (the “Bonus Payment”) under the Bank’s
Executive Annual Incentive Plan, or any successor thereto, to be determined by the Bank’s Board after discussion with President
and Chief Executive Officer and with the Executive. The Bonus Payment will be based upon the achievement of certain performance
targets for such year established by the Compensation Committee of the Bank’s Board, subject to the other terms and conditions
of the bonus plan and applicable law and regulation. Any such Bonus Payment shall be made not later than March 15th of the calendar
year following the calendar year in which the services are performed to which the Bonus Payment relates (so that the Bonus Payment
constitutes a short-term deferral exempt from Code Section 409A, as defined herein). Payment to Executive for any calendar year
of a Bonus Payment, if any, shall not be construed as an increase in Executive’s Base Salary. Any payment to Executive of
a Bonus Payment in any year shall not be offset against, and shall not preclude payment to Executive of, any other special cash
incentive compensation or cash bonus under any other incentive compensation plan, program or arrangement of the Bank that may be
applicable to Executive from time to time.

 

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 (c)         Vacation
and Holidays. Executive shall be entitled to twenty-five (25) paid vacation days each year in accordance with the terms of
the Bank’s vacation policy, to be taken at times selected by him and which are, to the maximum extent possible, at a time
mutually agreed upon by the parties or in accordance with the Bank’s policies. Executive shall also be entitled to paid
legal holidays in accordance with the policies of the Bank. After three (3) months of employment with the Bank, five (5) days
of annual sick leave and five (5) days of annual personal leave accrue.

 

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

 

(e)          Other Employee
Benefits. In addition to any other compensation or benefits provided for under this Agreement, Executive shall be entitled
to participate in any employee benefit plans, arrangements and perquisites of the Bank that is generally available to senior officers
of the Bank in accordance with such plans, arrangements or perquisites standard eligibility requirements. Executive shall also
be entitled to participate in any employee benefits or perquisites the Bank offers to senior officers or employees from time to
time during the Term of his employment. The Bank will not, without Executive’s prior written consent, make any changes in
such plans, arrangements or perquisites which would adversely affect Executive’s rights or benefits thereunder (other than
a reduction or elimination of benefits under one or more benefit plans maintained by the Bank as part of a good faith, overall
reduction or elimination of such plans or benefits applicable to all participants in a manner that does not discriminate against
Executive (except as such discrimination may be necessary to comply with applicable law)) without separately providing for an arrangement
that both ensures Executive receives or will receive the economic value that Executive would otherwise lose as a result of such
adverse changes, and which does not give rise to a violation of Code Section 409A. Without limiting the generality of the foregoing
provisions of this paragraph (e), Executive shall be entitled to participate in or receive benefits under all plans relating to
stock options, restricted stock awards or restricted stock units, stock purchases, pension, profit sharing, employee stock ownership,
supplemental retirement, directors’ retirement, group life insurance, medical and other health and welfare coverage that
are made available by the Bank currently or at any time in the future during the Term of this Agreement, subject to and on a basis
consistent with, the terms, conditions and overall administration of such plans and arrangements.

  

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

 

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

 

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

 

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

 

(ii)      Possible
Cure. If Executive has elected to terminate his own employment under this Section 4(b) and has delivered a Notice of Termination
to such effect, the Bank, if it has the ability to cure the actions or conditions constituting the Good Reason cited by Executive
in his notice before the proposed Termination Date identified in Executive’s notice (or such later Termination Date as may
be agreed upon by the parties), may elect to effect such a cure. If the Bank succeeds in such cure, then: (A) the proposed Termination
for Good Reason by Executive of his own employment under this paragraph (b) will be deemed ineffective, (B) the mutual obligations,
duties and rights of the parties under this Agreement will continue in effect as though Executive had never attempted to terminate
his employment for Good Reason, and (C) the Bank not shall take any adverse or retaliatory action against Executive solely as a
result of his initial election to terminate his employment under this Section 4(b).

 

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

 

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 (c)         Cash
Payment. In the event of any Termination without Cause of Executive’s employment under Section 4(a) above, or any Termination
for Good Reason by Executive of his own employment under Section 4(b) above, the Bank shall pay to Executive (or, if Executive
dies after such termination of employment but before such payment, to his beneficiary(ies) or his estate, as the case may be),
within the period following the Termination Date specified below, a amount in cash equal to two (2) times Executive’s Base
Salary. The parties hereto further agree that all payments received by Executive hereunder will not be subject to diminution if
Executive, subsequent to such Termination Not for Cause or Termination for Good Reason, becomes employed elsewhere.

 

The total amount paid to Executive under this
Section 4(c) shall be paid in a single lump sum cash distribution made within ten (10) days following the Termination Date; provided
however, if, at the Termination Date, Executive is a “Specified Employee,” as defined in Treasury Regulation
1.409-1(i), then, solely to the extent required to avoid penalties under Section 409A of the Internal Revenue Code (the “Code”),
such payment shall be delayed until the first day of the seventh full month following the Termination Date, or ten (10) days following
his earlier death.

 

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

 

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

 

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

 

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

 

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6.         
PAYMENT TO EXECUTIVE UPON TERMINATION WITHOUT CAUSE OR FOR GOOD REASON IN CONNECTION WITH THE A CHANGE IN CONTROL.

 

(a)         Payment
Upon a Change in Control. In the event Executive has a Termination without Cause or Termination for Good Reason in connection
with or following a Change in Control, as defined in Section 25, below, the Bank shall, within ten (10) days following the termination
of employment, pay and provide to Executive (or if Executive dies prior to such payment, to his beneficiary or beneficiaries or
his estate, as the case may be), in lieu of any cash payments under Section 4(c) above which are payable only in the event of a
termination of employment prior to a Change in Control, a lump sum cash payment equal to two (2) times Executive’s Base Salary.
, In addition, in the event Executive has a Termination without Cause or Termination for Good Reason in connection with or following
a Change in Control, Executive shall be entitled to the Post-Termination Benefits set forth in Section 6(b) below.

 

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

 

7.           
TERMINATION OF EXECUTIVE’S EMPLOYMENT FOR CAUSE.

 

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

 

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

 

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

 

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

		 	 

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

 

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

 

8.           
CERTAIN NOTICES

 

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

 

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

 

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

 

9.           
REDUCTION OF PAYMENTS TO AVOID EXCESS PARACHUTE PAYMENT.

 

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

 

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10.         
POST-TERMINATION OBLIGATIONS.

 

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

 

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

 

(a)          Non-Solicitation.
Executive recognizes that the business of the Company and the Bank is highly competitive, and therefore acknowledges and agrees
that at all times while employed by the Bank and for a period of one (1) year following the termination of Executive’s employment
with the Bank, Executive shall not, directly or indirectly, individually or together with any other person, as owner, shareholder,
investor, member, partner, proprietor, principal, director, officer, executive, manager, agent, representative, independent contractor,
consultant or otherwise:

 

		(i)	solicit in any manner or seek to obtain the business
of any person who is or was a customer or an active prospective customer of the Company or the Bank during the one-year period
prior to the termination of Executive’s employment; or

		 	 

		(ii)	request or advise any customer, supplier, vendor or others
who were doing business with the Company or the Bank during the one-year period prior to the termination of Executive’s
employment, or any other person, to terminate, reduce, limit or change their business or relationship with the Company or the
Bank; or

		 	 

		(iii)	induce, request or attempt to influence any officer of
the Company or the Bank to terminate his or her employment with the Company or the Bank;

 

provided, however,
this Section 11(a) shall not apply to hiring or recruitment efforts that
are initially directed to the public without the direct or indirect involvement by Executive (e.g., through a recruiter or a recruiting
website).

 

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

 

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

 

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

 

12.          DEATH,
DISABILITY OR RETIREMENT.

 

(a)          Death.
This Agreement shall terminate upon Executive’s death, and within thirty days of Executive’s death, the Bank shall
pay to Executive’s estate (at the direction of his executor or administrator), as the case may be, the sum of: (a) the amount
of any earned but unpaid Base Salary and benefits; plus (b) one (1) times Executive’s Base Salary. In addition, Executive
shall become immediately vested in any outstanding unvested equity or equity-related awards granted to Executive (including any
performance restricted share unit awards).

 

    	 	11	 

     

    

  

(b)          Disability.
In the event of a determination of Disability, Executive’s obligation to perform services under this Agreement will terminate.
In the event of a determination of Disability in accordance, Executive shall receive benefits under any disability program sponsored
by the Bank. In addition, Executive shall become immediately vested in any outstanding unvested equity or equity-related awards
granted to Executive (including any performance restricted share unit awards).

 

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

 

13.          EFFECT
ON PRIOR AGREEMENTS AND EXISTING BENEFIT PLANS.

 

This Agreement contains the entire understanding
between the parties hereto regarding the issues addressed herein, and supersedes any prior agreement or other understanding (whether
or not in writing) between the Bank and Executive, except that this Agreement shall not affect or operate to reduce any benefit
or compensation inuring to Executive of a kind elsewhere provided. No provision of this Agreement shall be interpreted to mean
that Executive is subject to receiving fewer benefits than those available to him without reference to this Agreement.

 

14.          NO
ATTACHMENT.

 

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

 

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

 

15.         

MODIFICATION AND WAIVER.

 

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

 

(b)          Waivers.
No term or condition of this Agreement shall be deemed to have been waived, nor shall there be any estoppel against the enforcement
of any provision of this Agreement, except by written instrument of the party charged with such waiver or estoppel. No such written
waiver shall be deemed a continuing waiver unless specifically stated therein, and each such waiver shall operate only as to the
specific term or condition waived and shall not constitute a waiver of such term or condition for the future as to any act other
than that specifically waived.

 

    	 	12	 

     

    

  

16.          SEVERABILITY.

 

If, for any reason, any provision of this Agreement,
or any part of any provision, is held invalid, such invalidity shall not affect any other provision of this Agreement or any remaining
part of such provision not held so invalid, and each such other provision and part thereof shall to the full extent consistent
with law continue in full force and effect.

 

17.          HEADINGS
FOR REFERENCE ONLY.

 

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

 

18.        
GOVERNING LAW; JURISDICTION AND VENUE.

 

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

 

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

 

THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY
WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT THAT THEY MAY HAVE TO TRIAL BY JURY OF ANY CLAIM OR CAUSE OF
ACTION, OR IN ANY LEGAL PROCEEDING, DIRECTLY OR INDIRECTLY BASED UPON OR ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
BY THIS AGREEMENT (WHETHER BASED ON CONTRACT, TORT, OR ANY OTHER THEORY).  EACH PARTY (i) CERTIFIES THAT NO REPRESENTATIVE,
AGENT, OR ATTORNEY OF ANY OF THE OTHER PARTIES HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT ANY SUCH OTHER PARTY WOULD NOT, IN
THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (ii) ACKNOWLEDGES THAT THEY HAVE BEEN INDUCED TO ENTER INTO THIS
AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS STATED ABOVE.

 

19.         
ATTORNEY’S FEES.

 

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

 

    	 	13	 

     

    

  

20.          NO
WAIVERS.

 

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

 

21.         
INDEMNIFICATION.

 

The Bank shall provide Executive (including
his heirs, executors and administrators) with coverage under a standard directors’ and officers’ liability insurance
policy at the expense of the Bank, and the Bank shall indemnify Executive (and his heirs, executors and administrators) to the
fullest extent permitted under applicable law against all expenses and liabilities reasonably incurred by him in connection with
or arising out of any action, suit or proceeding in which he may be involved by reason of his having been a director or officer
of the Bank (whether or not he continues to be a director or officer at the time of incurring such expenses or liabilities), such
expenses and liabilities to include, but not be limited to, judgments, court costs, attorneys’ fees and the costs of reasonable
settlements.

 

22.         
SUCCESSORS AND ASSIGNS.

 

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

 

23.          SUBJECT
TO APPLICABLE LAW.

 

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

 

    	 	14	 

     

    

  

24.          SECTION
409A COMPLIANCE.

 

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

 

25.          CERTAIN
DEFINED TERMS.

 

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

 

(a)           “Cause.”
For purposes of this Agreement, “Cause” shall mean, the Executive’s (i) consistent failure to comply with the
rules, procedures or policies of the Bank and its affiliates including, without limitation, any failure to timely report to work
at expected work hours, such determination to be made by the Bank in its sole and absolute discretion, (ii) failure to perform
the duties assigned by the President of the Bank or the Board in a manner that fully meets expected performance standards, as determined
by the Bank in its sole and absolute discretion, (iii) perpetrate an act that constitutes a crime, including without limitation,
a felony, misdemeanor, fraud, larceny, embezzlement, misappropriation of funds or other misconduct, which results in pecuniary
loss to the Bank or any of its affiliates or that brings the Bank or any of its affiliates into public disrepute, (iv) failure
or refusal to perform any of his duties or responsibilities, or breach of his duties or obligations under this Agreement, any such
failure, refusal or breach to be determined by the Bank in its sole and absolute discretion, (v) disqualification of the Executive
to serve as a senior officer of the Bank by any regulatory agency, (vi) willful malfeasance, misconduct, negligence, or incompetence,
(vii) engaging in any material transaction which constitutes self-dealing or a conflict of interest between the Executive and the
Bank without prior disclosure of such transaction to the Bank by the Executive and receipt of prior written approval from the Bank,
or (viii) use of alcohol or drugs that interferes with the performance of the Executive’s duties or other obligations to
the Bank and its affiliates.

 

    	 	15	 

     

    

  

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

  

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

 

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

 

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

 

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

 

    	 	16	 

     

    

  

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

 

26.           PERFORMANCE GUARANTEE; SOURCE
OF PAYMENTS.

 

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

 

27.          
EXECUTIVE REPRESENTATIONS AND WARRANTIES.

 

Executive expressly represents and warranties
that he: (i) is not a party to any non-competition and/or non-solicitation agreement or employment agreement containing non-compete
and/or non-solicitation provisions with any other employer or former employer which would in any way restrict Executive’s
performance of the duties set forth in this Agreement; (ii) is not subject to any other obligation which would in any way restrict
the performance of his duties hereunder; and (iii) will not bring to the Bank during his employment or use in connection with his
employment any confidential or proprietary information that he used or had access to by reason of any previous employment that
is the property of another employer.

 

[Signature Page Follows]

 

    	 	17	 

     

    

  

SIGNATURES

 

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

  

	ATTEST:	 	
        METROPOLITAN BANK HOLDING CORPORATION

        (as guarantor of payments under the Agreement) 
	 
	 	 	 	 
	 	 	/s/ Mark R. DeFazio	 
	Secretary	 	
        Mark R. DeFazio

        President and Chief Executive Officer
	 
	 	 	 	 
	 	 	METROPOLITAN COMMERICAL 	 
	 	 	 	 
	 	 	/s/ Mark R. DeFazio	 
	Secretary	 	
        Mark R. DeFazio

        President and Chief Executive Officer
	 
	 	 	 	 
	WITNESS:	 	EXECUTIVE:	 
	 	 	 	 
	 	 	/s/Scott Lublin	 
	Secretary	 	Scott Lublin	 

 

    	 	18EXHIBIT 10.1

EXHIBIT 10.1

FIRST AMENDMENT TO

LOAN AGREEMENT

THIS FIRST AMENDMENT TO LOAN AGREEMENT (this "Amendment") is entered into as of August 9, 2018 by and among SCHOOL SPECIALTY, INC., a Delaware corporation ("Borrower"), each Guarantor (as defined in the Loan Agreement) party hereto, the Lenders identified on the signature pages hereof and TCW ASSET MANAGEMENT COMPANY, as agent for the Lenders ("Agent").

WHEREAS, Borrower, the Guarantors from time to time party thereto, Agent, and the Lenders from time to time party thereto are parties to that certain Loan Agreement dated as of April 7, 2017 (as amended, restated, supplemented or otherwise modified from time to time, the "Loan Agreement"); and

WHEREAS, Borrower has requested that Agent and the Lenders amend the Loan Agreement in certain respects as set forth herein, and Agent and the Lenders have agreed to the foregoing, on the terms and conditions set forth herein. 

NOW THEREFORE, in consideration of the premises and mutual agreements herein contained, the parties hereto agree as follows:

1.

Defined Terms.  Unless otherwise defined herein, capitalized terms used herein and not otherwise defined shall have the meanings ascribed to such terms in the Loan Agreement.

2. 

Amendments to Loan Agreement.  Subject to the satisfaction of the conditions set forth in Section 5 below and in reliance upon the representations and warranties of Borrower and the Guarantors party hereto set forth in Section 6 below, the Loan Agreement is amended as follows: 

(A) 

The defined term "Change of Control" set forth in Section 1.1 of the Loan Agreement is hereby amended by deleting the reference to "35%" contained therein and inserting "50%" in lieu thereof.

(B) 

The defined term "Specified Unsecured Prepetition Debt" set forth in Section 1.1 of the Loan Agreement is hereby amended and restated in its entirety, as follows:

Specified Unsecured Prepetition Debt:  any payment or distribution in respect of the Allowed General Unsecured Claims or Allowed Trade Unsecured Claims (as such terms are defined in the Plan of Reorganization) that is made in accordance with Sections IV.E, IV.F and V.I of the Plan of Reorganization in an aggregate amount not to exceed the sum of (x) $24,500,000 and (y) the amount of accrued and unpaid interest thereon.

(C) 

Clause (j) of Section 10.2.1 of the Loan Agreement is hereby amended and restated in its entirety as follows: 

(j)        Specified Unsecured Prepetition Debt in an aggregate original principal amount (excluding accrued and unpaid interest thereon) not to exceed $24,500,000;

3. 

Continuing Effect.  Except as expressly set forth in Section 2 of this Amendment, nothing in this Amendment shall constitute a modification or alteration of the terms, conditions or covenants of the Loan Agreement or any other Loan Document, or a waiver of any other terms or provisions thereof, and the Loan Agreement and the other Loan Documents shall remain unchanged and shall continue in full force and effect, in each case as amended hereby.

4. 

Reaffirmation and Confirmation.  Each of Borrower and each Guarantor party hereto hereby ratifies, affirms, acknowledges and agrees that the Loan Agreement and the other Loan Documents represent the valid, enforceable and collectible obligations of Borrower and the Guarantors, and further acknowledges that there are no existing claims, defenses, personal or otherwise, or rights of setoff whatsoever with respect to the Loan Agreement or any other Loan Document.  Each of Borrower and each Guarantor party hereto hereby agrees that this Amendment in no way acts as a release or relinquishment of the Liens and rights securing payments of the Obligations.  The Liens and rights securing payment of the Obligations are hereby ratified and confirmed by Borrower and the Guarantors party hereto in all respects.

5. 

Conditions to Effectiveness of Amendment.  This Amendment shall become effective as of the date first written above upon the satisfaction of each of the following conditions precedent:

(a) 

Each party hereto shall have executed and delivered this Amendment to Agent;

(b) 

Agent shall have received a fully executed copy, in form and substance reasonably satisfactory to Agent, of a conforming amendment to the Revolving Loan Agreement;

(c) 

All proceedings taken in connection with the transactions contemplated by this Amendment and all documents, instruments and other legal matters incident thereto shall be reasonably satisfactory to Agent and its legal counsel; and

(d) 

No Default or Event of Default shall have occurred and be continuing.

6. 

Representations and Warranties.  In order to induce Agent and Lenders to enter into this Amendment, each of Borrower and each Guarantor party hereto hereby represents and warrants to Agent and Lenders that, after giving effect to this Amendment:

(a) 

All representations and warranties contained in the Loan Agreement and the other Loan Documents are true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) on and as of the date of this Amendment,

-2-

in each case as if made on and as of such date, other than representations and warranties that expressly relate solely to an earlier date (in which case such representations and warranties were true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) on and as of such earlier date);

(b) 

No Default or Event of Default has occurred and is continuing; and

(c) 

This Amendment and the Loan Agreement, as amended hereby, constitute legal, valid and binding obligations of Borrower and the Guarantors and are enforceable against Borrower and the Guarantors in accordance with their respective terms, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting creditors' rights generally.

7. 

Miscellaneous.

(a) 

Expenses.  Borrower agrees to pay on demand all expenses of Agent in connection with the preparation, negotiation, execution, delivery and administration of this Amendment in accordance with the terms of the Loan Agreement.

(b) 

Governing Law.  This Amendment shall be a contract made under and governed by, and construed in accordance with the internal laws of the State of New York.

(c) 

Counterparts.  This Amendment may be executed in any number of counterparts, and by the parties hereto on the same or separate counterparts, and each such counterpart, when executed and delivered, shall be deemed to be an original, but all such counterparts shall together constitute but one and the same Amendment.  Delivery of an executed signature page of this Amendment by facsimile transmission or electronic photocopy (i.e. "pdf") shall be effective as delivery of a manually executed counterpart hereof.

8. 

Release.  In consideration of the agreements of Agent and Lenders contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, each of Borrower and each Guarantor party hereto, on behalf of itself and its respective successors, assigns, and other legal representatives, hereby absolutely, unconditionally and irrevocably releases, remises and forever discharges Agent and Lenders, and their successors and assigns, and their present and former shareholders, affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees, agents and other representatives (Agent, each Lender and all such other Persons being hereinafter referred to collectively as the "Releasees" and individually as a "Releasee"), of and from all demands, actions, causes of action, suits, covenants, contracts, controversies, agreements, promises, sums of money, accounts, bills, reckonings, damages and any and all other claims, counterclaims, defenses, rights of set-off, demands and liabilities whatsoever (individually, a "Claim" and collectively, "Claims") of every name and nature, known or unknown, suspected or unsuspected, as of the date of this Amendment, both at law and in equity, which Borrower or any Guarantor, or any of their respective successors, assigns, or other legal representatives may now or hereafter own, hold, have or claim to have against the Releasees or any of them for, upon, or by reason of any circumstance, action, cause or thing whatsoever which arises at any time on or prior to the

-3-

day and date of this Amendment, in each case for or on account of, or in relation to, or in any way in connection with any of the Loan Agreement, or any of the other Loan Documents or transactions thereunder or related thereto.

[Signature pages follow]

-4-

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective officers thereunto duly authorized and delivered as of the date first above written.

		
	 
	BORROWER:

SCHOOL SPECIALTY, INC.

By:  /S/ Kevin L. Baehler                                               

Name:  Kevin L. Baehler                                               

Title: CFO                                               

	 
	 

	 
	GUARANTORS:

CLASSROOMDIRECT.COM, LLC, a Delaware limited liability company

By: /s/ Kevin L. Baehler                                                

Name:  Kevin L. Baehler                                                

Title:  CFO                                               

	 
	 

	 
	SPORTIME, LLC, a Delaware limited liability company

By: /s/ Kevin L. Baehler                                                

Name:  Kevin L. Baehler                                                

Title:  CFO                                               

	 
	 

	 
	DELTA EDUCATION, LLC, a Delaware limited liability company

By: /s/ Kevin L. Baehler                                                

Name:  Kevin L. Baehler                                                

Title:  CFO                                               

Signature Page to First Amendment to Loan Agreement

		
	 
	PREMIER AGENDAS, LLC, a Delaware limited liability company

By: /s/ Kevin L. Baehler                                                

Name:  Kevin L. Baehler                                                

Title:  CFO                                               

	 
	 

	 
	CHILDCRAFT EDUCATION, LLC, a Delaware limited liability company

By: /s/ Kevin L. Baehler                                                

Name:  Kevin L. Baehler                                                

Title:  CFO                                               

	 
	 

	 
	BIRD-IN-HAND WOODWORKS, LLC, a Delaware limited liability company

By: /s/ Kevin L. Baehler                                                

Name:  Kevin L. Baehler                                                

Title:  CFO                                               

	 
	 

	 
	CALIFONE INTERNATIONAL, LLC, a Delaware limited liability company

By: /s/ Kevin L. Baehler                                                

Name:  Kevin L. Baehler                                                

Title:  CFO                                               

	 
	 

	 
	SSI GUARDIAN, LLC, a Delaware limited liability company

By: /s/ Kevin L. Baehler                                                

Name:  Kevin L. Baehler                                                

Title:  CFO                                               

Signature Page to First Amendment to Loan Agreement

		
	 
	AGENT:

TCW ASSET MANAGEMENT COMPANY LLC,

as Agent

By: /s/ Suzanne Grosso                                                

Name:  Suzanne Grosso                                                

Title:  Managing Director                                               

	 
	 

	 
	LENDERS:

TCW DIRECT LENDING LLC,

as a Lender

By TCW Asset Management Company LLC

Its Investment Advisor

By: /s/ Suzanne Grosso                                                

Name:  Suzanne Grosso                                                

Title:  Managing Director                                               

	 
	 

	 
	TCW DIRECT LENDING STRATEGIC VENTURES LLC,

as a Lender

By: /s/ Suzanne Grosso                                                

Name:  Suzanne Grosso                                                

Title:  Managing Director                                               

	 
	 

	 
	WEST VIRGINIA DIRECT LENDING LLC,

as a Lender

By: TCW Asset Management Company LLC, 

its Investment Advisor

By: /s/ Suzanne Grosso                                                

Name:  Suzanne Grosso                                                

Title:  Managing Director                                               

Signature Page to First Amendment to Loan Agreement

		
	 
	TCW BRAZOS FUND LLC,

as a Lender

By: TCW Asset Management Company LLC, 

its Investment Advisor

By: /s/ Suzanne Grosso                                                

Name:  Suzanne Grosso                                                

Title:  Managing Director                                               

	 
	 

	 
	TCW SKYLINE LENDING, L.P.,

as a Lender

By: TCW Asset Management Company LLC, 

its Investment Advisor

By: /s/ Suzanne Grosso                                                

Name:  Suzanne Grosso                                                

Title:  Managing Director                                              

		
	

	CERBERUS AUS LEVERED HOLDINGS III LLC,

as a Lender

By:  /s/ Daniel E. Wolf                        

Name:    Daniel E. Wolf                      

Title:      Vice President                                           

	

	

	

	CERBERUS AUS LEVERED HOLDINGS LP

as a Lender

By:  CAL I GP Holdlings LLC

Its:  General Partner

By:  /s/ Daniel E. Wolf                      

Name:    Daniel E. Wolf                    

Title:      Senior Managing Director    

	

	

	

	CERBERUS AUS LEVERED II LP,

as a Lender

By:  CAL II GP, LLC

Its:  General Partner

By:   /s/ Daniel E. Wolf                    

Name:    Daniel E. Wolf                   

Title:      Vice President                    

	

	

	

	CERBERUS ICQ OFFSHORE LEVERED LP,

as a Lender

By: Cerberus ICQ Offshore GP LLC

Its: General Partner 

By:   /s/ Daniel E. Wolf                       

Name:    Daniel E. Wolf                      

Title:     Senior Managing Director      

	

	

	

	CERBERUS ICQ OFFSHORE LOAN OPPORTUNITIES MASTER FUND, L.P.

as a Lender

By:  Cerberus ICQ Offshore Levered GP, LLC

Its:  General Partner

By:  /s/ Daniel E. Wolf                          

Name:  Daniel E. Wolf                         

Title:  Senior Managing Director

		
	

	CERBERUS LOAN FUNDING XXI L.P.,

as a Lender

By:  Cerberus LFGP XXI, LLC

Its:  General Partner

By:  /s/ Daniel E. Wolf                        

Name:    Daniel E. Wolf                      

Title:      Senior Managing Director            

	

	

	

	CERBERUS OFFSHORE LEVERED LOAN

OPPORTUNITIES MASTER FUND III, L.P.

as a Lender

By:  Cerberus Offshore Levered Opportunities III GP, LLC

Its:  General Partner

By:  /s/ Daniel E. Wolf                      

Name:    Daniel E. Wolf                    

Title:      Senior Managing Director    

	

	

	

	CERBERUS REDWOOD LEVERED A LLC,

as a Lender

By:   /s/ Daniel E. Wolf                    

Name:    Daniel E. Wolf                   

Title:      Vice President                    

	

	

	

	CERBERUS REDWOOD LEVERED B LLC,

as a Lender

By:   /s/ Daniel E. Wolf                       

Name:    Daniel E. Wolf                      

Title:     Vice President           

	

	

	

	CERBERUS REDWOOD LEVERED LOAN OPPORTUNITIES FUND A, L.P.

as a Lender

By:  Cerberus Redwood Levered Opportunities GP A, LLC

Its:  General Partner

By:  /s/ Daniel E. Wolf                          

Name:  Daniel E. Wolf                         

Title:  Senior Managing Director    

		
	

	CERBERUS REDWOOD LEVERED LOAN OPPORTUNITIES FUND B, L.P.,

as a Lender

By:  Cerberus Redwood Levered Opportunities GP B, LLC

Its:  General Partner

By:   /s/ Daniel E. Wolf                    

Name:    Daniel E. Wolf                   

Title:      Senior Managing Director        

	

	

	

	CERBERUS SWC LEVERED II LLC,

as a Lender

By:   /s/ Daniel E. Wolf                       

Name:    Daniel E. Wolf                      

Title:     Vice President           

	

	

	

	CERBERUS SWC LEVERED LOAN OPPORTUNITIES MASTER FUND, L.P.

as a Lender

By:  Cerberus SWC Levered Opportunities GP, LLC

Its:  General Partner

By:  /s/ Daniel E. Wolf                          

Name:  Daniel E. Wolf                         

Title:  Senior Managing Director    

Signature Page to First Amendment to Loan Agreement

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