Document:

Exhibit 108

		
			Exhibit 10.8
		

		
			EMPLOYMENT AGREEMENT 
		

		
			This Employment Agreement (the “Agreement”) is made effective as of January 1, 2017 (the “Effective Date”), by and between The First of Long Island Corporation (the “Company”), The First National Bank of Long Island (the “Bank”; and together with the Company, “FLIC”) and Paul J. Daley (“Executive”).  
		

		
			WHEREAS,  FLIC wishes to assure itself of the continued services of Executive for the period and in accordance with the terms provided in this Agreement; and
		

		
			WHEREAS, in order to induce Executive to remain in the employ of FLIC and to provide further incentive for Executive to achieve the financial and performance objectives of FLIC, the parties desire to enter into this Agreement; and
		

		
			WHEREAS, the parties previously entered into an Employment Agreement dated March 1, 2014 (the “Prior Agreement”) and the parties have agreed that as of the Effective Date the terms and conditions set forth in this Agreement shall supersede any and all provisions of the Prior Agreement, and that such Prior Agreement shall be null and void and of no further force.  
		

		
			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.         Term.
		

		
			(a)        Term.    The term of this Agreement and the period of Executive’s employment hereunder shall begin as of the Effective Date and shall continue for twenty-four (24) full calendar months thereafter (the “Employment Period,” which shall include any periods covered by renewals hereunder).  Subject to Section 4(d), commencing on January 1, 2018, and continuing on January 1 of each year thereafter (the “Anniversary Date”), this Agreement shall renew for an additional twelve months such that the remaining term shall be twenty-four months (24) months unless written notice of non-renewal is provided to Executive at least thirty (30) days prior to any such Anniversary Date.  
		

		
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			2.         EMPLOYMENT; Capacity; Duties.
		

		
			(a)        Employment.  During the Employment Period Executive shall be employed in the capacity of Executive Vice President and Senior Commercial Banking Officer of FLIC (the “Executive Position”) and shall have such other senior executive title as may from time to time be determined by the Boards of Directors.  Executive shall have such duties and responsibilities as usually appertain to the Executive Position, as well as those as shall be assigned by the Chief Executive Officer or by the Board of Directors.  The Executive shall report to the Chief Executive Officer.  
		

		 

 

		
			(b)        Service on Other Boards.   Executive agrees to devote his full time and attention and best efforts to the faithful and diligent performance of Executive’s duties to FLIC, and Executive shall serve and further the best interests and enhance the reputation of FLIC to the best of Executive’s ability. Nothing herein shall be construed as preventing Executive from serving as a member of the board of directors of any non-profit organization (of which the Board shall be notified prior to the commencement of service) or, with the consent of the Board of Directors, of any for-profit organization, in either case subject to and consistent with applicable laws.  Executive’s service on boards of non-profits and for-profit organizations in effect as of the date of this Agreement and as to which the Board has been previously notified, may be continued.
		

		
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			3.         COMPENSATION, BENEFITS AND REIMBURSEMENT.
		

		
			(a)        Base Salary.  In consideration of Executive’s performance of the responsibilities and duties set forth in this Agreement, Executive shall receive an annual base salary of $261,500 per year (“Base Salary”).    Such Base Salary will be payable in accordance with the customary payroll practices of the Bank.    During the term of this Agreement, the Board may increase, but not decrease, Executive’s Base Salary.  Any increase in Base Salary will become the “Base Salary” for purposes of this Agreement. 
		

		
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			(b)        Bonus.  Executive shall be entitled to participate in any bonus plan or arrangement of FLIC (including both any short-term and long-term incentive program) in which senior management is eligible to participate.  Nothing paid to Executive under any such plan or arrangement will be deemed to be in lieu of the other compensation to which Executive is entitled under this Agreement.  The terms of FLIC’s short-term and long-term incentive plans or programs shall determine the bonuses payable thereunder, if any, to Executive following Executive’s termination of employment.  
		

		
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			(c)        Benefit Plans.  Executive will be entitled to participate in all employee benefit plans, arrangements and perquisites offered to employees and officers of FLIC, on the same terms and conditions as such plans are available to other employees and officers of FLIC.  Without limiting the generality of the foregoing provisions of this Section 3(c), Executive also will be entitled to participate in any employee benefit plans including but not limited to retirement plans, pension plans, profit-sharing plans, health-and-accident plans, or any other employee benefit plan or arrangement made available by the Bank in the future to management employees, subject to and on a basis consistent with the terms, conditions and overall administration of such plans and arrangements as applicable to other management employees.    Except as otherwise provided herein, the terms of FLIC’s benefit plans or arrangements shall determine the benefits payable thereunder, if any, to Executive following Executive’s termination of employment or retirement.  
		

		
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			(d)        Vacation.  Executive will be entitled to paid vacation, as well as sick leave, holidays and other paid absences, in accordance with the Bank’s policies and procedures for officers.  Any unused paid time off during an annual period will be treated in accordance with the Bank’s personnel policies as in effect from time to time.  
		

		
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		(e)        Expense Reimbursements.  FLIC will reimburse Executive for all reasonable travel, entertainment and other reasonable expenses incurred by Executive during the course of performing Executive’s obligations under this Agreement, including, without limitation, fees for memberships in such organizations as Executive and the Board mutually agree are necessary and appropriate in connection with the performance of Executive’s duties under this Agreement.  Furthermore, the Bank shall pay or reimburse Executive for the full cost of the use of an automobile that is mutually agreeable to the Bank and Executive.  Executive shall comply with the reasonable reporting and expense limitations on the use of such automobile as the Bank may establish from time to time.  All reimbursements shall be made as soon as practicable upon substantiation of such expenses by Executive in accordance with the applicable policies and procedures of the Bank.  
		

		
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			4.         TERMINATION AND COMPENSATION PAYABLE FOLLOWING TERMINATION.    
		

		
			Executive’s employment under this Agreement may be terminated in the following circumstances:
		

		
			(a)        Death.  This Agreement shall terminate upon Executive’s death, in which event Executive’s estate or beneficiary shall be entitled to receive the compensation and vested benefits due Executive as of the date of Executive’s death, and neither Executive, nor Executive’s estate or beneficiary, shall have a right to receive any compensation or benefits under this Agreement thereafter.
		

		
			(b)        Disability.  FLIC may terminate Executive’s employment upon his becoming “Totally Disabled,” in which event Executive shall be entitled to receive the compensation and vested benefits due Executive as of the date of Executive’s termination, and Executive shall have no right to receive any other compensation or benefits under this Agreement.  For purposes of this Agreement, Executive shall be “Totally Disabled” if Executive is physically or mentally incapacitated so as to render Executive incapable of performing the essential functions of his position under this Agreement even with reasonable accommodation. Executive’s receipt of disability benefits under the Bank’s long-term disability plan, if any, or receipt of Social Security disability benefits shall be deemed conclusive evidence of Total Disability for purpose of this Agreement; provided, however, that in the absence of Executive’s receipt of such long-term disability benefits or Social Security benefits, the Board may, in its reasonable discretion but based upon appropriate medical evidence, determine that Executive is Totally Disabled.  
		

		
			(c)        Termination for Cause.    The Board may immediately terminate Executive’s employment for “Cause” at any time upon written notice to Executive.  Executive shall have no right to receive compensation or other benefits under this Agreement or otherwise from FLIC for any period after termination for Cause, except for compensation or benefits that have already been earned or vested as of the date of termination.  For purposes of this Agreement, “Termination for Cause” shall mean termination because of, in the good faith determination of the Board: (i) Executive’s conviction (including conviction on a nolo contendere plea) of a felony or of any lesser criminal offense involving moral turpitude, fraud or dishonesty; (ii) the willful commission by Executive of a criminal or other act that, in the reasonable judgment of the Board will likely cause substantial economic damage to the Company or the Bank or substantial injury to the business reputation of the Company or Bank; (iii) the commission by Executive of an act of fraud in the 
		

		 

		

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		performance of his duties on behalf of the Company or Bank; (iv) the continuing willful failure of Executive to perform his employment duties to the Company or Bank after thirty (30) days’ written notice thereof (specifying the particulars thereof in reasonable detail) and a reasonable opportunity to be heard and cure such failure are given to Executive by the Board; (v) an order of a federal or state regulatory agency or a court of competent jurisdiction requiring the termination of Executive’s employment by the Company or the Bank; or (vi) a material breach by Executive of any provision of this Agreement.
		

		
			(d)        Retirement.  This Agreement and the obligations hereunder shall expire on December 31 of the calendar year in which Executive attains Normal Retirement Age (“Retirement Age Termination Date”). For purposes of this Agreement,  “Normal Retirement Age” shall mean age 65.  Nothing in this Agreement shall mandate or prohibit a continuation of Executive’s employment following the Retirement Age Termination Date, provided that Executive shall not be entitled to any benefits or payments under this Agreement upon termination of Executive’s employment following Retirement Age Termination Date (unless the Extended Employment Period is in effect ).  Notwithstanding the foregoing, upon written notice to Executive, FLIC may extend the term of this Agreement for an additional two year period beyond the Retirement Age Termination Date (the “Extended Employment Period”).
		

		
			(e)        Voluntary Termination by Executive.  Executive may voluntarily terminate employment during the term of this Agreement upon 30 days’ prior written notice to the Board.  FLIC may accelerate the date of termination upon receipt of written notice of Executive’s voluntary termination.
		

		
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			(f)        Termination Without Cause or With Good Reason.
		

		
			(A)      The Board may terminate Executive’s employment at any time for any reason upon no less than 30 days’ written notice (a termination “Without Cause”), and Executive may, by written notice to the Board, terminate his employment at any time within 90 days following an event constituting “Good Reason,” as defined below (a termination “With Good Reason”); provided, however, that FLIC shall have 30 days to cure the “Good Reason” condition, but FLIC may waive its right to cure.  Executive’s notice of termination With Good Reason shall notify the Company of the event that constitutes Good Reason.
		

		
			(B)      “Good Reason” exists if, without Executive’s express written consent, any of the following occurs:
		

		
			(A)       the failure to appoint Executive during the Employment Period to the Executive Position;
		

		
			(B)       a reduction in Executive’s Base Salary;   
		

		
			(C)       the failure of the Bank to maintain Executive’s participation under the Bank’s employee benefit, retirement, or material fringe benefit plans, policies, practices, or arrangements in which Executive participates. For this purpose, the Bank may eliminate and/or 
		

		 

		

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		modify existing employee benefit, retirement, or fringe benefit plans and coverage levels on a consistent and non-discriminatory basis applicable to all such executives; or
		

		
			(D)       a relocation of Executive’s principal place of employment by more than 50 miles from Executive’s principal place of employment as of the initial Effective Date of this Agreement.
		

		
			(g)        Compensation Payable Following Termination of Employment.  Upon termination of Executive’s employment under this Agreement, Executive (or, if applicable, his beneficiary) shall be entitled to receive the following compensation:
		

		
			(i)        Earned but Unpaid Compensation.  FLIC shall pay Executive any accrued but unpaid Base Salary for services rendered to the date of termination, any accrued but unpaid expenses required to be reimbursed under this Agreement, and any vacation accrued to the date of termination in accordance with the Bank’s personnel policies.
		

		
			(ii)       Other Compensation and Benefits.  Except as may be provided under this Agreement,
		

		
			(A)      any benefits to which Executive may be entitled pursuant to the plans, policies and arrangements referred to in Section 3(b) and (c) above shall be determined and paid in accordance with the terms of such plans, policies and arrangements, and
		

		
			(B)      Executive shall have no right to receive any other compensation, or to participate in any other plan, arrangement or benefit, with respect to future periods after such termination or resignation.
		

		
			(h)        Additional Compensation Payable Following Termination Without Cause or Termination with Good Reason.  
		

		
			(i)        In addition to the compensation set forth in Section 4(g) above, Executive will receive the additional compensation and benefits set forth in this paragraph (h), if the following requirements are met:
		

		
			(A)      Executive’s employment is terminated pursuant to Section 4(f) above (Termination Without Cause or Termination for Good Reason), including a termination following a Change in Control; and
		

		
			(B)      Executive executes a release of his claims against the Bank, the Company and any affiliate, and their officers, directors, successors and assigns (the “Release”), the form of which release is attached to this Agreement. The Release must be executed and become irrevocable by the 60th day following the date of Executive’s termination of employment; provided that if the 60 day period spans two (2) calendar years, then, to the extent necessary to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), the payments and benefits described in this Section 4(h) will be paid, or commence, in the second calendar year.
		

		

		

		 

		

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		(ii)       If Executive meets the requirements described in clause (i) above, 
		

		
			(A)      FLIC shall pay Executive, or in the event of Executive’s subsequent death, Executive’s beneficiary or estate, a cash lump sum payment equal to the sum of:
		

		
			(i)        two times Base Salary at the rate in effect immediately prior to his date of termination, plus 
		

		
			(ii)       an amount equal to the product of: (I) the reasonably estimated monthly cost of the medical, dental and vision insurance coverage maintained by the Bank for Executive immediately prior to Executive’s date of termination; multiplied by (II) twenty-four  (24). 
		

		
			Such amount shall be paid to Executive in a lump sum within ten (10) days following Executive’s date of termination, or if later, following the seventh (7th) day after Executive’s execution of the Release required under Section 4(h)(i)(B) hereof.
		

		
			5.         CHANGE IN CONTROL.
		

		
			(a)        Change in Control Defined.  For purposes of this Agreement, the term “Change in Control” shall mean the occurrence of any of the following events:
		

		
			(A)      Merger:  The Bank or the Company merges into or consolidates with another entity whereby the Bank or the Company is not the surviving entity, or the Bank or the Company merges another bank or corporation into the Bank or the Company, and as a result, less than a majority of the combined voting power of the resulting corporation immediately after the merger or consolidation is held by persons who were stockholders of the Company or the Bank immediately before the merger or consolidation;
		

		
			(B)      Acquisition of Significant Share Ownership:  There is filed, or is required to be filed, a report on Schedule 13D or another form or schedule (other than Schedule 13G) required under Sections 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended, if the schedule discloses that the filing person or persons acting in concert has or have become the beneficial owner of 50% or more of a class of the Company’s or the Bank’s voting securities; provided, however, this clause (B) shall not apply to beneficial ownership of the Company’s or the Bank’s voting shares held in a fiduciary capacity by an entity of which the Company directly or indirectly beneficially owns 50% or more of its outstanding voting securities;
		

		
			(C)      Change in Board Composition:  During any period of two (2) consecutive years, individuals who constitute the Company’s or the Bank’s Board of Directors at the beginning of the two-year period cease for any reason to constitute at least a majority of the Company’s or the Bank’s Board of Directors; provided, however, that for purposes of this clause (C), each director who is first elected by the board (or first nominated by the board 
		

		 

		

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		for election by the stockholders) by a vote of at least two-thirds (2/3) of the directors who were directors at the beginning of the two-year period or who is appointed to the Board as the result of a directive, supervisory agreement or order issued by the primary federal regulator of the Company or the Bank or by the Federal Deposit Insurance Corporation (“FDIC”) shall be deemed to have also been a director at the beginning of such period; or
		

		
			(D)      Sale of Assets:  The Company or the Bank sells to a third party all or substantially all of its assets.
		

		
			(b)        280G Net-Best Benefit.   Notwithstanding the preceding Sections of this Agreement, if the payments and benefits to be afforded to Executive under Section 4(h) hereof (the “Severance Benefits”) either alone or together with other payments and benefits which Executive has the right to receive from FLIC (or any affiliate) would constitute a “parachute payment” under Section 280G of the Code, and but for this Section 5(b), would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the Severance Benefits shall be reduced (the “Benefit Reduction”) by the minimum amount necessary to result in no portion of the Severance Benefits being subject to the Excise Tax, provided, however, that the Benefit Reduction shall only occur if such reduction would result in Executive’s “Net After-Tax Amount” attributable to the Severance Benefits being greater than it would be if no Benefit Reduction was effected.  For this purpose, “Net After-Tax Amount” shall mean the net amount of Severance Benefits Executive is entitled to under this Agreement after giving effect to all federal, state and local taxes which would be applicable to such payments and benefits, including but not limited to, the Excise Tax.  Nothing contained herein 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 5(b), or a reduction in the Severance Benefits below zero.    
		

		
			(c)        Extension of Employment Period.   In the event FLIC has entered into an agreement to effect a transaction that would be considered a Change in Control during the Employment Period, the Employment Period shall be extended automatically for a period ending on, and including, the 30th day following the effective date of the Change in Control (to the extent the Employment Period would otherwise expire, without regard to the foregoing, prior to the completion of such period).   
		

		
			6.         COVENANTS OF EXECUTIVE.
		

		
			(a)        Non-Solicitation/Non-Compete.
		

		
			(i)        Executive hereby covenants and agrees that, during the “Restricted Period” and except as provided in clause (ii) below, Executive shall not, without the written consent of FLIC, either directly or indirectly:
		

		
			(A)      solicit, offer employment to, or take any other action intended (or that a reasonable person acting in like circumstances would expect) to have the effect of causing any officer or employee of FLIC, or any of its respective 
		

		 

		

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		subsidiaries or affiliates, to terminate his or her employment with FLIC and/or accept employment with another employer; or
		

		
			(B)      become an officer, employee, consultant, director, independent contractor, agent, joint venturer, partner or trustee of any savings bank, savings and loan association, savings and loan holding company, commercial bank, credit union, bank or bank holding company, any mortgage or loan broker or any other entity (excluding not-for-profit entities other than credit unions) that competes with the business of FLIC or any of their direct or indirect subsidiaries or affiliates, or that has a headquarters, or one or more offices, within New York City or in the Counties of Nassau or Suffolk, New York (the “Restricted Territory”); or
		

		
			(C)      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 FLIC to terminate an existing business or commercial relationship with FLIC. 
		

		
			(ii)       The restrictions contained in Section 6(a)(i)(B) above shall not apply in the event of a Termination for Cause, or in the event of a termination of employment following a Change in Control.
		

		
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			(iii)       For purposes of this paragraph (a), the “Restricted Period” shall be a period of one  (1) year following Executive’s termination of employment with FLIC.
		

		
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			(b)        Confidentiality.  Executive recognizes and acknowledges that the knowledge of the business activities, plans for business activities, and all other proprietary information of FLIC, as it may exist from time to time, is valuable, special and unique assets of the business of FLIC.  Executive will not, during or after the term of Executive’s employment, disclose any knowledge of the past, present, planned or considered business activities or any other similar proprietary information of FLIC to any person, firm, corporation, or other entity for any reason or purpose whatsoever unless expressly authorized by the Board or required by law.  Notwithstanding the foregoing, Executive may disclose any knowledge of banking, financial and/or economic principles, concepts or ideas which are not solely and exclusively derived from the business plans and activities of FLIC.  Further, Executive may disclose information regarding the business activities of FLIC to any bank regulator having regulatory jurisdiction over the activities of FLIC pursuant to a formal regulatory request.  In the event of a breach or threatened breach by Executive of the provisions of this Section, FLIC will be entitled to an injunction restraining Executive from disclosing, in whole or in part, the knowledge of the past, present, planned or considered business activities of FLIC or any other similar proprietary information, 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 FLIC from pursuing any other remedies available to FLIC for such breach or threatened breach, including the recovery of damages from Executive.
		

		 

		

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			(c)        Information/Cooperation.  Executive shall, upon reasonable notice, furnish such information and assistance to FLIC as may be reasonably required by FLIC, in connection with any litigation in which it or any of its subsidiaries or affiliates is, or may become, a party, and he shall be reimbursed for any expenses incurred in providing such information and assistance; provided, however, that Executive shall not be required to provide information or assistance with respect to any litigation between Executive and FLIC or any other subsidiaries or affiliates.
		

		
			(d)        Reliance.  Except as otherwise provided, all payments and benefits to Executive under this Agreement shall be subject to Executive’s compliance with this Section 6, to the extent applicable.   
		

		
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			7.         EFFECT ON PRIOR AGREEMENTS AND EXISTING BENEFITS PLANS.
		

		
			This Agreement contains the entire understanding between the parties hereto and supersedes any prior employment agreement between FLIC or any predecessor of FLIC and Executive, except that this Agreement shall not affect or operate to reduce any benefit or compensation inuring to Executive of a kind expressly provided elsewhere.  
		

		
			8.         NO ATTACHMENT; BINDING ON SUCCESSORS.
		

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

		
			(b)        FLIC’s obligations under this Agreement shall be binding on any and all successors or assigns, whether direct or indirect, by purchase, merger, consolidation or otherwise, to all or substantially all the business or assets of FLIC, in the same manner and to the same extent that FLIC would be required to perform if no such succession or assignment had taken place.
		

		
			9.         MODIFICATION AND WAIVER.
		

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

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

		
			10.        MISCELLANEOUS PROVISIONS.
		

		
			Notwithstanding anything herein contained to the contrary, the following provisions shall apply:
		

		

		

		 

		

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		(a)        FLIC may terminate Executive’s employment at any time, but any termination by the Board other than termination for Cause shall not prejudice Executive’s right to compensation or other benefits under this Agreement.  Executive shall have no right to receive compensation or other benefits for any period after Executive’s termination for Cause. 
		

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

		
			(c)        In the event that FLIC provides written notice of non-renewal of the Agreement to the Executive in accordance with Section 1 hereof, and Executive’s employment is terminated subsequent to the expiration of the Employment Period, the provisions and obligations of the parties under this Agreement shall have expired and be of no force and effect, and therefore FLIC shall have no obligations to make payments to Executive under Section 4 of this Agreement.
		

		
			(d)        The parties intend that this Agreement and any payments and benefits payable hereunder shall either comply with, or be exempt from, the requirements of Code Section 409A, and this Agreement shall be maintained, administered, and interpreted consistent with that intention.  Notwithstanding any provision herein to the contrary, FLIC makes no representations concerning Executive’s tax consequences under this Agreement under Code Section 409A, or any other federal, state, or local tax law.  Executive’s tax consequences will depend, in part, upon the application of relevant tax law, including Code Section 409A, to the relevant facts and circumstances.  Notwithstanding anything else in this Agreement to the contrary (with the exception of Section 4(c)), Executive’s employment shall not be deemed to have been terminated unless and until Executive has a Separation from Service within the meaning of Code Section 409A.  For purposes of this Agreement, a “Separation from Service” shall have occurred if FLIC and Executive reasonably anticipate that either no further services will be performed by Executive after the date of termination (whether as an employee or as an independent contractor) or the level of further services performed is less than 50 percent of the average level of bona fide services in the 36 months immediately preceding the termination.  For all purposes hereunder, the definition of Separation from Service shall be interpreted consistent with Treasury Regulation Section 1.409A-1(h)(ii). Each payment under this Agreement is intended to be a “separate payment” and not of a series of payments for purposes of Code Section 409A.  
		

		
			(e)        Notwithstanding the foregoing, if Executive is a “specified employee” (i.e., a “key employee” of a publicly traded company within the meaning of Section 409A of the Code and the final regulations issued thereunder) and any payment under this Agreement is triggered due to Executive’s Separation from Service (other than due to disability or death), then solely to the extent necessary to avoid penalties under Section 409A of the Code, no payment shall be made during the first six (6) months following Executive’s Separation from Service.  Rather, any payment which would otherwise be paid to Executive during such period shall be accumulated and paid to Executive in a lump sum on the first day of the seventh month following such Separation from Service.  All subsequent payments shall be paid in the manner specified in this Agreement.    
		

		
			(f)        Notwithstanding anything in this Agreement to the contrary, Executive understands that nothing contained in this Agreement limits Executive’s ability to file a charge or complaint 
		

		 

		

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		with the Securities and Exchange Commission or any other federal, state or local governmental agency or commission (“Government Agencies”) about a possible securities law violation without approval of FLIC.  Executive further understands that this Agreement does not limit Executive’s ability to communicate with any Government Agency or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to FLIC related to the possible securities law violation.  This Agreement does not limit Executive’s right to receive any resulting monetary award for information provided to any Government Agency.
		

		
			(g)        In the event of Executive’s death, his beneficiary shall be his surviving spouse.  Alternatively, Executive may designate other beneficiaries.  If Executive’s spouse does not survive him, or if no beneficiary designation is in effect at the time of Executive’s death, then payments due thereafter shall be made to the Executive’s estate.
		

		
			11.        SEVERABILITY.
		

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

		
			12.        GOVERNING LAW.
		

		
			This Agreement shall be governed by the laws of State of New York, but only to the extent not superseded by federal law.
		

		
			13.        ARBITRATION.
		

		
			(a)        Any dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by binding arbitration, as an alternative to civil litigation and without any trial by jury to resolve such claims, conducted by a single arbitrator mutually acceptable to FLIC and Executive, sitting in a location selected by the Bank within 50 miles from the main office of the Bank, in accordance with the rules of the American Arbitration Association’s National Rules for the Resolution of Employment Disputes then in effect.  Judgment may be entered on the arbitrator’s award in any court having jurisdiction.  The cost of the arbitrator shall be paid by FLIC; all other costs  of arbitration shall be borne by the respective parties.
		

		
			(b)        If Termination For Cause is disputed by Executive, and if it is determined in arbitration that Executive is entitled to compensation and benefits under Section 4(h) of this Agreement, the payment of such compensation and benefits by the Bank shall commence immediately following the date of resolution by arbitration, with interest due Executive on the cash amount that was not paid pending arbitration (at the prime rate as published in The Wall Street Journal from time to time).
		

		

		

		 

		

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			14.        Notice.  
		

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

		
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						To FLIC:

					
					
						The First of Long Island Corporation

					
						10 Glen Head Road

					
						Glen Head, New York 11545

					
						Attn: Chairman of the Board

					
						 

					
						 

				
	
					
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						To Executive:

					
					
						To the most recent address on file with the Bank.  

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

		
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						THE FIRST OF LONG ISLAND 

				
	
					
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						CORPORATION 

				
	
					
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						By: /s/ Michael N. Vittorio

				
	
					
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						Name: Michael N. Vittorio

				
	
					
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						Title: President

				
	
					
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						THE FIRST NATIONAL BANK OF 

				
	
					
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						LONG ISLAND

				
	
					
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						By: /s/ Michael N. Vittorio

				
	
					
						﻿

					
					
						Name: Michael N. Vittorio

				
	
					
						﻿

					
					
						Title: President

				
	
					
						﻿

					
					
						 

				
	
					
						﻿

					
					
						 

				
	
					
						﻿

					
					
						EXECUTIVE

					
						 

					
						By: /s/ Paul J. Daley

				
	
					
						﻿

					
					
						Paul J. Daley

					
						 

					
						 

					
						 

				
	
					
						﻿

					
					
						 

				
	
					
						﻿

					
					
						 

				

		
			﻿
		

		

		

		 

		

			13

		

 

		
		

		
			RELEASE
		

		
			﻿
		

		
			Pursuant to Section 4(g)(ii) of the Employment Agreement between The First of Long Island Corporation (the “Company”), The First National Bank of Long Island (the “Bank”) and Paul J. Daley (“Executive”), effective January 1, 2017 (herein after, the “Agreement”), Executive is entitled to a cash lump sum severance payment (the “Severance Payment”) in connection with his termination of employment. As a condition to receiving the Severance Payment, Executive shall have executed and not timely revoked this release (this “Release”) in accordance with the terms and conditions below by no later than the 60th day following Executive’s termination of employment.
		

		
			Intending to be legally bound, Executive hereby, on behalf of Executive and Executive’s heirs, executors, administrators, successors and assigns, fully, finally and forever releases and discharges the Company, the Bank,  as well as their predecessors, successors and assigns, and all of their respective parent, subsidiary, related and affiliated companies, officers, owners, directors, agents, representatives, attorneys, and employees (all of whom are referred to throughout this Release as the “Parties”), of and from all claims, charges, demands, actions, causes of action, complaints, suits, controversies, proceedings, promises, agreements, liabilities, debts, obligations, judgments, rights, fees, damages, losses, and expenses, of any and every nature whatsoever, in law or in equity, known or unknown, suspected or unsuspected (collectively, “Claims”), as a result of: (i) actions or omissions occurring through the execution date of this Release; or (ii) any agreement, arrangement or promise between Executive and any Party. Specifically included in this waiver and release are, among other things, any and all Claims related to the Agreement, Claims of alleged employment discrimination, either as a result of the separation of Executive’s employment or otherwise, under the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, Title VII of the Civil Rights Act of 1964, the Family and Medical Leave Act, the Americans with Disabilities Act, the Employee Retirement Income Security Act of 1974, the Worker Adjustment and Retraining Notification Act, as amended by applicable New York law and all of their respective implementing regulations and/or any other federal, state or local statute, rule, ordinance, or regulation, as well as any Claims for compensation of any type whatsoever, alleged wrongful discharge, negligent or intentional infliction of emotional distress, breach of express or implied contract, quasi- contract, promissory estoppel, detrimental reliance, fraud, defamation, or any other unlawful behavior, the existence of which is specifically denied by the Parties. The foregoing list is intended to be illustrative rather than inclusive. Executive waives the rights and Claims to the extent set forth above, and Executive also agrees not to institute, or have instituted, a lawsuit against the Parties based on any such waived Claims or rights.
		

		
			Nothing in this Release, however, shall be construed to prohibit Executive from filing a charge or participating in any investigation or proceeding conducted by the Equal Employment Opportunity Commission or other federal, state or local agency. Notwithstanding the foregoing, Executive waives Executive’s right to recover monetary or other damages as a result of any Claim filed by Executive or by anyone else on Executive’s behalf, including a class or collective action, whether or not Executive is named in such proceeding.
		

		

		

		 

		

			14

		

 

		Further, nothing in this Release is intended to waive Executive’s entitlement to: (i) any earned but unpaid compensation or benefits from the Bank or any affiliate of the Bank; (ii) the Severance Payment; (iii) vested or accrued benefits under any tax-qualified or nonqualified employee benefit plan sponsored by the Company or the Bank; (iv) equity awards under the Company’s stock plans, but subject to the treatment thereof set forth in the plans and underlying award agreements; (v) Executive’s right to elect health care continuation coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) at Executive’s expense (if Executive is eligible for COBRA coverage); and (vi) indemnification and directors’ and officers’ insurance coverage applicable to the fullest extent permitted under applicable law and as provided in the Bank’s or the Company’s charter, bylaws and directors’ and officers’ liability insurance policy. Moreover, this Release does not waive claims that Executive could make, if available, for unemployment or workers’ compensation.
		

		
			Finally, this Release does not limit Executive’s ability to file a charge or complaint with the Securities and Exchange Commission or any other federal, state or local governmental agency or commission (“Government Agencies”) about a possible securities law violation without approval of the Company or the Bank. Executive further understands that this Agreement does not limit Executive’s ability to communicate with any Government Agency or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Company or the Bank related to the possible securities law violation. This Agreement does not limit the Executive’s right to receive any resulting monetary award for information provided to any Government Agency.
		

		
			Executive affirms that, absent Executive’s execution of this Release, Executive would not be entitled to the Severance Payment and is therefore receiving consideration to which Executive would not otherwise be entitled to receive. Executive also affirms that the only consideration for Executive signing this Release is that set forth in Section 4(g) of the Agreement, that no other promise or agreement of any kind has been made to or with Executive by any person or entity to cause Executive to execute this Release, and that Executive fully understands the meaning and intent of this Release, including but not limited to, its final and binding effect.
		

		
			Executive also affirms that Executive shall be subject to the covenants set forth in Section 6 of the Agreement.
		

		
			Executive acknowledges that Executive has carefully read and reviewed this Release and has been advised to seek the advice of an attorney, and Executive has had an opportunity to consult with and receive counsel from an attorney concerning the terms of this Release.
		

		
			Executive understands and is satisfied with the terms and contents of this Release and voluntarily has signed Executive’s name to the same as a free act and deed. Executive agrees that this Release shall be binding upon Executive and Executive’s agents, attorneys, personal representatives, heirs, and assigns. Executive acknowledges that Executive has been given a period of at least 45 days from date of receipt within which to consider and sign this Release, which shall not be signed by Executive before Executive’s last day of employment. To the 
		

		 

		

			15

		

 

		extent Executive has executed this Release less than 45 days after its delivery to Executive, Executive hereby acknowledges that Executive’s decision to execute this Release prior to the expiration of such 45-day period was entirely voluntary.
		

		
			﻿
		

		
			Executive acknowledges that Executive will be given seven (7) days from the date Executive signs this Release to change Executive’s mind and revoke this Release. If Executive does not revoke this Release within seven (7) days of Executive’s signing, this Release will become final and binding on the day following such seven (7) day period.
		

		
			In the event that any one or more of the provisions of this Release shall be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remainder of this Release shall not in any way be affected or impaired thereby. This Release shall inure to the benefit of and be binding upon the Company, the Bank, their affiliates, any successor organization which shall succeed the Company or the Bank by merger, acquisition or consolidation or operation of law and their assigns. This Release shall be binding upon the Executive and his assigns, heirs and legal representatives. This Release shall be governed by the law of the State of New York without reference to its choice of law rules.
		

		
			Any notice to revoke this Release will be deemed properly given or made if personally delivered or, if mailed, when mailed by registered or certified mail, postage prepaid to The First of Long Island Corporation at its principal business office, to the attention of______________. The principal business office of The First of Long Island Corporation is located at 10 Glen Head Road, Glen Head, New York 11545.
		

		
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			By executing this Release, Executive acknowledges that Executive has had the opportunity to consult with an attorney of Executive’s choice; that Executive has carefully reviewed and considered this Release; that Executive understands the terms of this Release; and that Executive voluntarily agrees to them.
		

		
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			EXECUTIVE
		

		
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			_____________________________
		

		
			Date:
		

		
			(On or after Executive’s last day of employment)
		

		
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			THE FIRST OF LONG ISLAND CORPORATION
		

		
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			_______________________________
		

		
			By: 
		

		
			Title:
		

		
			Date:
		

		
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			THE FIRST NATIONAL BANK OF LONG ISLAND
		

		
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			________________________________
		

		
			By: 
		

		
			Title:
		

		
			Date:
		

		
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			﻿
		

		 

		

			17Exhibit 10.1

 

 

SECOND AMENDMENT AND WAIVER TO TERM LOAN
AGREEMENT

 

THIS SECOND AMENDMENT
AND WAIVER TO TERM LOAN AGREEMENT (this “Amendment”) is entered into as of March 15, 2018, by and among the
Lenders signatory hereto, Wilmington Trust, National Association, in its capacity as administrative and collateral agent for the
Lenders (in such capacity, “Agent”), Capitala Private Credit Fund V, L.P., in its capacity as lead arranger
(the “Lead Arranger”), Vintage Stock Affiliated Holdings, LLC (“Holdings”) and Vintage Stock,
Inc. (“Target Borrower”, and together with Holdings and each other Person joined hereto as a borrower from time
to time, collectively the “Borrowers”).

 

RECITALS

 

WHEREAS, the
Lenders, Agent, Lead Arranger and the Loan Parties have previously entered into that certain Term Loan Agreement dated November
3, 2016 (as amended by that certain First Amendment and Waiver to Term Loan Agreement, dated as of October 10, 2017, and as may
be further amended, modified and supplemented from time to time, the “Credit Agreement”), pursuant to which
the Lenders have made certain loans and financial accommodations available to the Borrowers;

 

WHEREAS, Events
of Default have occurred and are continuing due to (i) the Borrowers making Capital Expenditures in excess of $200,000 in the aggregate
for the period ending December 31, 2016 as prohibited under Section 7.12, which constitutes an Event of Default under Section 8.01(b)
of the Credit Agreement; (ii) the Borrowers permitting the Consolidated Total Leverage Ratio calculated as of the fiscal quarters
of the Borrowers ending on (a) September 30, 2017 to be greater than 3.25:1.00 and (b) December 31, 2017 to be greater than 3.00:1.00,
in each case, as prohibited under Section 7.11, which constitutes an Event of Default under Section 8.01(b) of the Credit Agreement;
(iii) the occurrence of events of default under the ABL Facility Documents due to the foregoing clauses (i) and (ii), which constitutes
an Event of Default under Section 8.01(o) of the Credit Agreement; (iv) the failure of the Loan Parties to terminate the account
maintained at Arvest Bank with account #18343209 within one hundred twenty (120) calendar days of the Closing Date as required
under Section 2 of Schedule 6.18 to the Credit Agreement, which constitutes an Event of Default under Section 8.01(b) of the Credit
Agreement, and (v) failure to deliver the first amendment to the ABL Credit Agreement as required under Section 6.02(i), which
constitutes an Event of Default under Section 8.01(b) of the Credit Agreement (collectively, the “Known Existing Defaults”);

 

WHEREAS, on
the date that was no later than five (5) Business Days after financial statements were required to be delivered pursuant to Section
6.01(a) of the Credit Agreement with respect to the fiscal year ended September 30, 2017, the Borrowers failed to prepay the Loans,
as provided in Section 2.05(b)(i) and otherwise in accordance with the other provisions of Section 2.05(b), in an aggregate amount equal to $1,100,000 (together with accrued and unpaid interest thereon,
the “Unpaid ECF Payment” and the Event of Default arising therefrom, the “Unpaid ECF Default”,
and together with the Known Existing Defaults, the “Second Amendment Defaults”);

 

WHEREAS, the
Borrowers have informed the Agent and the Lenders of the potential prepayment in full by the Borrowers of the outstanding principal
balance of the Term Loans and all other outstanding Obligations, pursuant to Section 2.05(a)(i) of the Credit Agreement (the “Potential
Prepayment”), which would constitute an Applicable Premium Trigger Event under the Credit Agreement to the extent the
Potential Prepayment is made on a date prior to November 3, 2018 (the “Specific Applicable Premium Trigger Event”);

 

WHEREAS, as
a result of the Specific Applicable Premium Trigger Event, the Borrowers would be required to pay to the Agent, for the ratable
account of the Lenders, an Applicable Premium in an amount equal to 1.0% of the principal amount of the Term Loan prepaid in connection
with the Potential Prepayment as of the date of the Specific Applicable Premium Trigger Event (the “Specific Applicable
Premium”);

 

WHEREAS, the Borrowers have requested
(i) certain amendments to the Credit Agreement, (ii) that the Agent and the Required Lenders waive the Second Amendment Defaults
and (iii) that the Agent and the Lenders waive the Specific Applicable Premium;

 

WHEREAS, upon the terms and conditions
set forth herein, Agent and the Lenders are willing to accommodate Borrowers’ requests and waive the Second Amendment Defaults
and the Specific Applicable Premium; and

 

 

 

    	 	1	 

     

    

 

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

 

AGREEMENT

 

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 Credit Agreement.

 

2.               
Amendments to Credit Agreement. Subject to the satisfaction of the conditions precedent set forth in Section 6
of this Amendment, the Credit Agreement is hereby amended as follows:

 

(a)             
Section 1.01 of the Credit Agreement (Defined Terms) is hereby amended and modified by adding the following definitions
in the appropriate alphabetical order:

 

““Second
Amendment” means that certain Second Amendment and Waiver to Term Loan Agreement dated as of March 15, 2018, by and among
Borrowers, Administrative Agent, Lead Arranger and the lenders identified on the signature pages thereof.”

 

““Second
Amendment Effective Date” means March 15, 2018.”

 

(b)            
Section 8.04 of the Credit Agreement (Equity Cure) is hereby amended by adding the following proviso at the end of
the first sentence thereof:

 

“; provided
further that, from and after the Second Amendment Effective Date, the Borrowers shall not be permitted to request or utilize
a Specified Equity Contribution pursuant to this Section 8.04.”

 

3.               
Waiver of Known Existing Defaults.

 

(a)       Subject
to the satisfaction of the conditions precedent set forth in Section 6 below, the Agent and the Required Lenders hereby waive the
Known Existing Defaults. For the avoidance of doubt, (i) the Lead Arranger acknowledges and agrees that the fees and disbursements
of outside counsel to Agent and Lead Arranger in connection with the Credit Agreement and this Amendment paid by the Borrowers
shall be added back to Consolidated Net Income when calculating Consolidated EBITDA, pursuant to and subject to the limits set
forth in clause (b)(vii) of the definition of “Consolidated EBITDA” in Section 1.01 of the Credit Agreement, which
fees and disbursements are hereby approved by the Lead Arranger, and (ii) a waiver under this Section 3 with respect to Capital
Expenditures shall apply only to the testing period for the period ending December 31, 2016 and does not relieve or release the
Borrowers from their obligation under Section 7.12 to maintain Capital Expenditures not exceeding the amounts set forth therein
for any other testing period.

 

(b)       Subject
to (i) the satisfaction of the conditions precedent set forth in Section 6 below, and (ii) the receipt of the Unpaid ECF Payment
on or prior to the Unpaid ECF Payment Date, the Agent and the Required Lenders hereby waive the Unpaid ECF Default.

 

4.               
Acknowledgment. Borrowers acknowledge and agree that the foregoing waiver pursuant to Section 3 relates solely to
the Second Amendment Defaults and that this Amendment shall not relieve or release Borrowers or any Loan Party in any way from
any of its respective duties, obligations, covenants or agreements under the Credit Agreement and the other Loan Documents or from
the consequences of any other Event of Default that may hereafter arise.

 

5.               
Waiver of Specific Applicable Premium. Subject to the satisfaction of the conditions precedent set forth in Section
6 below, and to the extent (i) the Agent shall receive the Unpaid ECF Payment on a date no later than March 19, 2018 (the “Unpaid
ECF Payment Date”) and (ii) the Potential Prepayment shall occur on a date no later than April 30, 2018 (or May 30, 2018
to the extent the Borrowers pay to the Agent, for the benefit of the Lenders, an extension fee in an amount equal to $25,000 on
or prior to April 30, 2018) (the “Potential Payment Date”), the Agent and the Lenders hereby waive the Specific
Applicable Premium.

 

 

 

    	 	2	 

     

    

 

6.               
Conditions Precedent to Effectiveness. The effectiveness of this Amendment is subject to the prior or concurrent
consummation of the following conditions:

 

(a)             
Other than with respect to the Second Amendment Defaults, the representations and warranties contained herein and in the
Credit Agreement are true, correct and complete in all material respects;

 

(b)            
Agent, the Lead Arranger and the Lenders shall have received a copy of this Amendment executed by the Borrowers and each
other party hereto;

 

(c)             
Other than with respect to the Second Amendment Defaults, no Default or Event of Default shall have occurred and be continuing
or shall be caused by the transactions contemplated by this Amendment (after giving effect to this Amendment and the consummation
of the transactions contemplated hereby); and

 

(d)            
The Borrowers shall have paid all of the Agent’s and Lead Arranger’s reasonable and documented out-of-pocket
expenses (including, without limitation, the reasonable fees and disbursements of outside counsel to Agent and Lead Arranger in
connection with the Credit Agreement and this Amendment), to the extent required under the Loan Documents, and all other fees required
to be paid in connection with this Amendment.

 

7.               
Representations, Warranties and Covenants; Expenses. Borrowers expressly reaffirm all of their representations and
warranties in the Credit Agreement as of the date of this Amendment (except such representations and warranties that expressly
relate to an earlier date).

 

8.               
No Fees or Side Letter. No fee has been or will be paid to the ABL Facility Lenders or any agent or lender under
the ABL Facility Documents in connection with the transactions contemplated hereby. Other than that certain Waiver Agreement dated
the date hereof between Target Borrower and Texas Capital Bank, National Association, no side letter or other agreement not disclosed
to the Agent and the Lead Arranger has been entered into with the ABL Facility Lenders or any agent or lender under the ABL Facility
Documents in connection with the transactions contemplated hereby.

 

9.               
No Waiver. Except as set forth in this Amendment, all of the terms and conditions of the Credit Agreement remain
in full force and effect and none of such terms and conditions are, or shall be construed as, otherwise amended or modified, except
as specifically set forth herein and nothing in this Amendment shall constitute a waiver by Agent, Lead Arranger and any Lender
of any Default or Event of Default, or of any right, power or remedy available to Agent, Lead Arranger and any Lender under the
Credit Agreement, whether any such defaults, rights, powers or remedies presently exist or arise in the future.

 

10.            
Ratification. The Credit Agreement shall, together with this Amendment and any related documents, instruments and
agreements shall hereafter refer to the Credit Agreement, as amended hereby.

 

11.            
Release. EACH LOAN PARTY HEREBY ACKNOWLEDGES AND AGREES THAT IT HAS NO DEFENSE, COUNTERCLAIM, OFFSET, CROSS COMPLAINT,
CLAIM OR DEMAND OF ANY KIND OR NATURE WHATSOEVER THAT CAN BE ASSERTED TO REDUCE OR ELIMINATE ALL OR ANY PART OF ITS LIABILITY TO
REPAY THE OBLIGATIONS OR TO SEEK AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR NATURE FROM AGENT, LEAD ARRANGER AND LENDERS. EACH
LOAN PARTY HEREBY VOLUNTARILY AND KNOWINGLY RELEASES AND FOREVER DISCHARGES THE AGENT, LEAD ARRANGER AND LENDERS AND EACH OF THEIR
RESPECTIVE PREDECESSORS, AGENTS, EMPLOYEES, AFFILIATES, SUCCESSORS AND ASSIGNS (COLLECTIVELY, THE “RELEASED PARTIES”)
FROM ALL POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES AND LIABILITIES WHATSOEVER, WHETHER KNOWN
OR UNKNOWN, ANTICIPATED OR UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT OR CONDITIONAL, OR AT LAW OR IN EQUITY, IN
ANY CASE ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE DATE THIS AMENDMENT IS EXECUTED THAT SUCH LOAN PARTY MAY NOW OR HEREAFTER
HAVE AGAINST THE RELEASED PARTIES, IF ANY, IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW
OR REGULATIONS, OR OTHERWISE, AND THAT ARISE FROM ANY OF THE LOANS, THE EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE AGREEMENT
OR ANY OF THE OTHER SECURITY INSTRUMENTS, AND/OR THE NEGOTIATION FOR AND EXECUTION OF THIS AMENDMENT, INCLUDING, WITHOUT LIMITATION,
ANY CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING OR RECEIVING INTEREST IN EXCESS OF THE HIGHEST LAWFUL RATE APPLICABLE.

 

 

 

    	 	3	 

     

    

 

12.            
Continuing Effect. Except as expressly set forth in Sections 2, 3 and 5 of this Amendment, nothing in this Amendment
shall constitute a modification or alteration of the terms, conditions or covenants of the Credit Agreement or any other Loan Document,
or a waiver of any other terms or provisions thereof, and the Credit Agreement and the Loan Documents shall remain unchanged and
shall continue in full force and effect, in each case as amended hereby.

 

13.            
Governing Law. This Amendment shall be governed by, and construed in accordance with, the laws of the State of New
York, without giving effect to the conflicts of laws principles thereof, but including Section 5-1401 of the New York General Obligations
Law.

 

14.            
Loan Document. This Amendment is a Loan Document.

 

15.            
Other Provisions. The provisions of the Credit Agreement that are not expressly amended in this Amendment shall remain
unchanged and in full force and effect. In the event of any conflict between the terms and provisions of this Amendment and the
Credit Agreement, the provisions of this Amendment shall control.

 

16.            
Signatures. This Amendment may be signed in counterparts. A facsimile or other electronic transmission of a signature
page will be considered an original signature page. At the request of a party, the other party will confirm a fax-transmitted or
electronically transmitted signature page by delivering an original signature page to the requesting party.

 

17.            
Waiver of Notice; Acknowledgment of No Rejection. The Agent and the Lenders hereby waive the Notice of Loan Prepayment
required under Section 2.05(b)(x) with respect to payment of the Unpaid ECF Payment, and each Lender confirms that it will
not exercise its right under Section 2.05(b)(xii) to reject its pro rata share of the Unpaid ECF Payment.

 

18.            
Execution of this Agreement. The Lenders hereby direct the Agent to execute this Amendment on behalf of all Lenders.

 

 

 

[Signature Pages
Follow]

 

 

 

 

    	 	4	 

     

    

IN WITNESS WHEREOF,
the parties have caused this Amendment to be duly executed and delivered as of the date first written above.

 

BORROWERS:

	 	
        VINTAGE STOCK, INC.

         

         

        By: /s/ Rodney Spriggs

        Name: Rodney Spriggs

        Title: CEO / President

 

 

 

	 	
        VINTAGE STOCK AFFILIATED HOLDINGS LLC

         

         

        By: /s/ Jon Isaac

        Name: Jon Isaac

        Title: President

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	5	 

     

    

 

	ADMINISTRATIVE AGENT:	WILMINGTON TRUST, NATIONAL ASSOCIATION
	 	 
	 	 
	 	By:  /s/ Joshua G. James

Name:  Joshua G. James

Title:  Vice President

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	6	 

     

    

 

	LEAD ARRANGER:	CAPITALA PRIVATE CREDIT FUND V, L.P. 
	 	
        By: CAPITALA PCF V, LLC, its General Partner

         

         

        /s/ Jack F. McGlinn

	
         

         

         

        LENDERS:
	
        Name: Jack F. McGlinn

        Title: Chief Operating Officer

         

         

        CAPITALA FINANCE CORP.

         

         

        /s/ Jack F. McGlinn

        Name: Jack F. McGlinn

	 	Title: Chief Operating Officer
	 	
         

        CAPITALSOUTH PARTNERS FUND II LIMITED PARTNERSHIP

         

        By: CAPITAL SOUTH PARTNERS F-II, LLC, its General Partner

         

         

        /s/ Jack F. McGlinn

        Name: Jack F. McGlinn

        Title: Chief Operating Officer

         

         

        CAPITALSOUTH PARTNERS SBIC FUND III, L.P.

         

        By: CAPITALSOUTH PARTNERS SBIC F-III, LLC, its General
        Partner

         

         

        /s/ Jack F. McGlinn

        Name: Jack F. McGlinn

        Title: Chief Operating Officer

         

         

        CAPITALA PRIVATE CREDIT FUND V, L.P.

         

        By: CAPITALA PCF V, LLC, its General Partner

         

         

        /s/ Jack F. McGlinn

        Name: Jack F. McGlinn

        Title: Chief Operating Officer

 

 

 

    	 	7

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