Document:

ThermoEnergy
Corporation

 

Executive
Employment Agreement

 

AGREEMENT, dated the
10th day of December 2012, by and between ThermoEnergy Corporation, a Delaware corporation (together with all of its
subsidiaries, the “Company”) and James F. Wood (the “Executive”).

 

WHEREAS, the Company
desires to engage the services of the Executive as President and Chief Executive Officer of the Company on the terms herein set
forth and the Executive is willing to be employed by the Company in such capacities on such terms;

 

NOW, THEREFORE, in
consideration of the mutual covenants contained herein, the parties agree as follows:

 

ARTICLE
I

EMPLOYMENT
DUTIES AND BENEFITS

 

Section 1.1
Employment. The Company hereby employs the Executive as President and Chief Executive Officer as of January 2, 2013
(the “Commencement Date”). The Executive accepts such employment and agrees to perform the duties and responsibilities
assigned to him pursuant to this Agreement.

 

Section 1.2
Duties and Responsibilities. The Executive shall perform such lawful duties and have such responsibilities as are customarily
associated with the office in which he is employed. In addition thereto, the Executive shall undertake such duties as may reasonably
be assigned to him from time to time by the Board of Directors of the Company (the “Board of Directors”). The Executive
will serve as a member of the Board of Directors. The Executive shall devote his full professional time and attention to the business
of the Company and shall not be engaged in any other business activity; provided, however, that the Executive may serve as a Trustee
of Clarkson University and, with the prior consent of the Board of Directors (which consent shall not be unreasonably withheld),
engage in other activities, so long as such activities do not materially interfere with the Executive’s performance of his
responsibilities as Chief Executive Officer of the Company. The Executive’s service on governmental commissions and advisory
boards and his testimony before Congressional committees or regulatory bodies shall not require the consent of the Board of Directors.

 

Section 1.3
Office Facilities. The Company will provide to the Executive an appropriate office, which shall be located at the Company’s
principal executive offices in Worcester, Massachusetts.

 

ARTICLE
II

COMPENSATION
and benefits

 

Section 2.1
Base Salary. The Company shall pay to the Executive a salary of $230,000 (the “Base Salary”) payable in
equal installments in accordance with the Company’s payroll and withholding policies. The Base Salary shall be reviewed annually
and shall be subject to adjustment from time to time to reflect the Executive’s performance of his responsibilities hereunder,
employment market conditions, the Company’s financial condition and such other factors as the Compensation Committee of the
Board of Directors (the “Compensation Committee”) deems relevant. The Base Salary shall not be decreased without the
consent of the Executive.

 

    	-1-

    	 

    
 

Section 2.2
Relocation Expenses. The Company will reimburse the Executive (i) for up to $5,000 for moving and other reasonable relocation
expenses and (ii) for up to $3,000 per week for temporary lodging expenses reasonably incurred by the Executive during the six-week
period commencing on the Commencement Date.

 

Section 2.3
Performance Bonus. In addition to the Base Salary, the Executive shall be eligible to receive performance bonuses, from
time to time, in accordance with incentive compensation arrangements to be established by the Compensation Committee in consultation
with the Executive. Such performance bonuses shall be payable in cash, in shares of the Company’s Common Stock, in options
to purchase shares of the Company’s Common Stock, or in a combination thereof, at the discretion of the Compensation Committee;
provided, however, that, except under extraordinary circumstances, the Company will not pay performance bonuses in cash until such
time as the Company’s business operations are cash flow positive.

 

Section 2.4 
Expense Reimbursement. The Company will, in accordance with the Company’s general policies with respect to business
expenses, reimburse the Executive for all expenses (including travel and lodging) reasonably incurred by the Executive in the performance
of this duties under this Agreement.

 

Section 2.5
Benefit Plans. From and after the date of this Agreement, the Executive shall be entitled to receive, during the term
of the Executive’s employment and at the expense of the Company, health insurance for himself and his family and to participate
in any and all other benefit plans (including life and disability insurance plans and retirement programs) provided generally to
executive employees of the Company.

 

Section 2.6 
Equity Incentive. Effective as of the date of this Agreement, the Executive shall be granted a stock option for the
purchase of 13,750,000 shares of the Company’s common stock at an exercise price per share equal to the closing price of
a share of such common stock in the over-the-counter market on the trading day immediately preceding the Commencement Date (the
“Stock Option”). The Stock Option shall have a term of ten years, subject to the Executive’s continued employment
by the Company, and will include a net surrender cashless exercise provision. To the extent that the Stock Option may be treated
as an Incentive Stock Option (an “ISO”) under the Internal Revenue Code and the Treasury Regulations promulgated thereunder
(the “ISO Rules”), the Stock Option shall be granted under the Company’s 2008 Incentive Stock Plan (the “Plan”).
The right to exercise the Stock Option shall vest, with respect to 859,375 shares, on March 31, 2013 and thereafter, with respect
to an additional 859,375 shares on the last day of each subsequent calendar quarter through and including December 31, 2016, subject
to the Executive’s continued employment by the Company; provided, however, that if, prior to December 31, 2016, the Executive’s
employment is terminated other than by the Company for Cause (as such term is defined in Section 3.2 below) or by the Executive
without Good Reason (as such term is defined in Section 3.2 below) within ninety days after a Change of Control, then, effective
as of the date on which the Executive’s employment is terminated, the Stock Option shall vest with respect to fifty percent
(50%) of the shares that were unvested on the date of the Change of Control. Except to the extent that the Plan or the ISO Rules
limit the right to exercise the ISO portion of the Stock Option following termination of the Executive’s employment, the
vested portion of the Stock Option may be exercised at any time prior to the tenth anniversary of the date of this Agreement, notwithstanding
the earlier termination of the Executive’s employment. As used herein, the term “Change of Control” shall mean
any of the following: (i) the completion by the Company of a reorganization, merger, consolidation, share exchange, or a sale,
lease, exchange or other disposition of all or substantially all of the Company’s assets, unless immediately following
such transaction the holders of the Company’s voting stock immediately prior to the transaction own voting securities representing
a majority of the votes entitled to be cast for the election of directors of the successor entity; (ii) the acquisition, after
the date of this Agreement, by any person or “group” (as defined under the federal securities laws) of “beneficial
ownership” (as defined under the federal securities laws) of a majority of (a) the outstanding shares of the Company’s
common stock or (b) the combined voting power of the then outstanding voting securities of the Company which are entitled to elect
a majority of the members of the Board of Directors; or (iii) the approval by the Company’s shareholders of a complete liquidation
or dissolution of the Company; provided, however, that if an event that otherwise would constitute a Change of Control results
from or arises out of a purchase or other acquisition of the Company, directly or indirectly, by a corporation or other entity
in which the Executive has a greater than five percent (5%) direct or indirect equity interest (other than Babcock Power Inc.,
so long as, at the time of such purchase or other acquisition, the Executive is not an officer or director of Babcock Power Inc.
or any of its affiliates), such event shall not constitute a Change of Control.

 

    	-2-

    	 

    
 

Section 2.7 
Vacation. The Executive shall be entitled to four weeks of paid vacation per calendar year. The Executive may not roll
over unused vacation time from year to year.

 

ARTICLE
III

TERM OF
EMPLOYMENT AND TERMINATION

 

Section 3.1
Term. The term of the Executive’s employment hereunder shall commence on the Commencement Date and shall continue
indefinitely.

  

Section 3.2
Termination of Employment. The Executive’s employment hereunder may be terminated, at any time, by either party
upon thirty days’ written notice; provided, however, that the Company may terminate the Executive’s employment immediately
for Cause and the Executive may terminate his employment immediately with Good Reason. As used herein, the term “Cause”
for termination of the Executive’s employment by the Company shall mean any of the following: (a) willful or gross misconduct
(including fraud) that is materially harmful to the Company; (b) willful neglect of duties and responsibilities consistent with
the terms of this Agreement that have been reasonably assigned to the Executive by the Board of Directors, which continues for
a period of at least ten days after the Executive receives written notice thereof from the Board of Directors; or (c) conviction
of the Executive of, or a plea of nolo contendere by the Executive to, a crime punishable by imprisonment; provided, however, that
any action taken by the Executive in his capacity as an officer of the Company will not be deemed to constitute Cause even if subsequently
determined to be criminal if, prior to taking such action, the executive consulted with the Board of Directors or the Company’s
legal counsel and was advised that such action was permissable. As used herein, the term “Good Reason” for the Executive’s
voluntary termination of his employment shall mean either of the following: (a) the Company’s failure to perform the terms
of this Agreement, other than an isolated, insubstantial and inadvertent failure not occurring in bad faith and remedied by the
Company promptly (but not later than ten days) after receiving written notice thereof from the Executive; (b) a material reduction
in the Executive’s duties or responsibilities, including, without limitation, if the Executive is removed from, or not elected
or re-elected, to the Board of Directors; or (c) a material reduction of the Base Salary.

  

In the event the Executive’s
employment is terminated for any reason other than (i) by the Company for Cause or (ii) voluntarily by the Executive without Good
Reason, the Executive shall be entitled to receive, in addition to any unpaid salary and accrued and unused vacation pay through
the last day of the month in which such termination occurs, as the Executive’s sole and exclusive entitlement upon termination
of his employment under such circumstances, (i) severance payments in the amount of $19,167 per month for a period of six months
commencing on the first day of the month immediately following the date of termination, payable in accordance with the Company’s
standard payroll and withholding policies and (ii) continuation of health insurance benefits as set forth in the following sentence.
For a period of six months commencing on the first day of the month immediately following the date of termination of the Executive’s
employment (other than termination (i) by the Company for Cause or (ii) voluntarily by the Executive without Good Reason) the Company
shall keep in full force and effect all health insurance benefits afforded to the Executive at the time of the termination of his
employment, which benefits shall be provided on terms identical to those provided to full time employees of the Company who are
in good standing; provided, however, that the Company’s obligation to provide continuing health insurance benefits to the
Executive shall terminate at such time as the Executive becomes eligible to receive from any other employer, at a cost to the Executive
no greater than the cost that would have been borne by the Executive had he remained a full time employee of the Company, health
insurance benefits with equivalent or better coverage.

 

    	-3-

    	 

    
 

Section 3.3Section
409A. Notwithstanding anything herein to the contrary, (i) if at the time of the termination of the Executive’s employment
the Executive is a “specified employee” (as such term is defined in Section 409A of the Internal revenue Code of 1986,
as amended (the “Code”)) and the deferral of the commencement of any payments or benefits otherwise payable hereunder
as a result of such termination of employment is necessary in order to prevent any accelerated or additional tax under Section
409A of the Code, then the company will defer the commencement of the payment of any such payments or benefits hereunder (without
any reduction in such payments or benefits ultimately paid or provided to the executive) until the date that is six months following
the date of termination of the Executive’s employment (or the earliest date as is permitted under Section 409A of the Code
without any accelerated or additional tax) and (ii) if any other payments of money or other benefits due to the Executive hereunder
could cause the application of an accelerated or additional tax under Section 409A of the Code, such payments or other benefits
shall be restructured, to the extent possible, in a manner, determined by the Compensation Committee, that is reasonably expected
not to cause such accelerated or additional tax. Any payments deferred pursuant to the preceding sentence (other than deferred
amounts that will continue to accrue earnings under the terms of the applicable deferral arrangement) shall be paid together with
interest thereon at a rate equal to the applicable Federal rate for short-term instruments. For purposes of Section 409A of the
Code, each payment made under this Agreement shall be designated as a “separate payment” within the meaning of Section
409A of the Code and references herein to the “termination of the Executive/s Employment” shall refer to the Executive’s
separation from service with the Company within the meaning of Section 409A of the Code. To the extent any reimbursements or in-kind
benefits due to the Executive under this Agreement constitute “deferred compensation” under Section 409A of the Code,
any such reimbursements or in-kind benefits shall be paid to the Executive in a manner consistent with Treas. Reg. 1.409A-3(i)(1)(iv).
Additionally, to the extent that the Executive’s receipt of any in-kind benefits from the Company or its affiliates must
be delayed pursuant to this Section 3.3 due to the Executive’s status as a “specified employee,” the Executive
may elect to instead purchase and receive such benefits during the period in which the provision of benefits would otherwise be
delayed by paying the Company (or its affiliates) for the fair market value of such benefits (as determined by the Company in good
faith) during such period. Any amounts paid by the Executive pursuant to the preceding sentence shall be reimbursed to the Executive
(with interest thereon) as described above on the date that is six months following the Executive’s separation from service.
The company shall consult with the Executive in good faith regarding the implementation of the provisions of this Section 3.3;
provided that neither the Company nor any of its employees or representatives shall have any liability to the Executive with respect
thereto.

 

    	-4-

    	 

    

 

ARTICLE
IV

COVENANTS

 

Section 4.1Confidentiality
and Non-Use of Proprietary Information. To protect the Company’s proprietary interest in the Company’s intellectual
property and proprietary information and to protect the goodwill and value of the Company, the Executive hereby agrees that the
Executive will preserve as confidential all Confidential Information pertaining to the Company’s business that has been
or may be obtained or learned by him by reason of his employment or otherwise. The Executive will not, without the written consent
of the Company either use for his own benefit or for the benefit of any third parties, either during the term of his employment
hereunder or thereafter (except as required in fulfilling the duties of his employment), any Confidential Information pertaining
to the business of the Company. As used herein, the term “Confidential Information” shall include without limitation
any and all financial, cost and pricing information and any and all information contained in any drawings, designs, plans, proposals,
customer lists, records of any kind, data, formulas, specifications, concepts or ideas related to the business of the Company.
Confidential Information shall not include information which (a) is disclosed in a publication available to the public, is otherwise
in the public domain at the time of disclosure, or becomes publicly known through no wrongful act on the part of the Executive,
(b) is obtained by the Executive lawfully from a third party who is not under an obligation of secrecy to the Company and is not
under any similar restrictions as to use, or (c) is generally disclosed to third parties by the Company without similar restrictions
on such third parties. The Executive acknowledges that all documents, reports, files, analyses, drawings, designs tools, equipment,
plans (including, without limitation, marketing and sales plans), proposals, customer lists, computer software or hardware, patents,
license agreements, and similar materials that are made by him or come into his possession by reason of his employment by the
Company are the property of the Company and shall not be used by him in any way adverse to the Company’s interests. The
Executive will not cause any such documents or other things, or any copies, reproductions or summaries thereof, to by delivered
to or used by any third party without the specific consent of the Company. The Executive will deliver to the Chairman of the Board
of Directors, or his designee, upon demand, and in any event upon the termination of the Executive’s employment, all such
documents and other things which are in the Executive’s possession or under his control. Notwithstanding anything to the
contrary set forth in this Section 4.1, to the extent the Executive received Confidential Information of the Company’s subsidiary,
ThermoEnergy Power Systems, LLC, a Delaware limited liability company (“TEPS”) or of its affiliate Babcock-Thermo
Clean Carbon LLC (“BTCC”) pursuant to the Master Non-Disclosure Agreement dated as of February 25, 2009 by and among
BTCC, the Company and certain other parties including Babcock Power, Inc. (“Babcock”), as supplemented by the written
confidentiality agreement the Executive and Babcock (the “BTCC Confidentiality Agreements”), the terms of the BTCC
Confidentiality Agreements shall govern the Executive’s possession and use of such Confidential Information.

 

Section 4.2Non-Competition
and Non-Solicitation. To protect the Company’s proprietary interest in the Company’s intellectual property
and proprietary information and to protect the goodwill and value of the Company, the Executive hereby agrees that during his
employment by the Company and, following the date on which his employment is terminated, for a period of (i) one year if the Executive’s
employment is terminated by the Company for Cause or voluntarily by the Executive without Good Reason or (ii) six months if the
Executive’s employment is terminated for any other reason (in either case, the “Non-Compete Term”), the Executive
will not, individually, or in association or in combination with any other person or entity, directly or indirectly, as proprietor
or owner, or officer, director or shareholder of any corporation, or as an employee, agent, independent contractor, consultant,
advisor, joint venturer, partner or otherwise, whether or not for monetary benefit, except on behalf of the Company, solicit,
sell to, provide services to, or assist the solicitation of, sale to, or providing to, or encourage, induce or entice any other
person or entity to solicit, sell to or provide services to, any person or entity who is a customer of the Company or who, at
any time within 18 months prior to the date of termination of the Executive’s employment, or whom the Company has, within
six months prior to the date of such termination, solicited to become a customer of Company, for the purpose of (a) providing
such customer with any product or service which directly competes with the products or services provided by the Company to such
customer or is in substitution for or in replacement of such products or services; (b) altering, modifying or precluding
the development of such customer’s business relationship with the Company; or (c) reducing the volume of business which
such customer transacts with the Company. To further protect the Company’s proprietary interest in the Company’s intellectual
property and proprietary information and to protect the goodwill of the Company (including the Company’s beneficial business
relationships with the Company’s employees), the Executive hereby agrees that, during the Non-Compete Term, the Executive
will not, individually or in association or in combination with any other person or entity, directly or indirectly, encourage,
induce or entice any employee or independent contractor of the Company to terminate or modify such person’s or entity’s
employment, engagement or business relationship with the Company or, without the prior written consent of the Company, hire or
retain any employee or independent contractor then performing services for the Company to perform the same or substantially similar
services.

 

    	-5-

    	 

    
 

Section 4.3Scope
of Covenants. The Executive agrees that the products and services of the Company can be, and are being designed and developed
to be, manufactured, distributed and/or sold throughout the world. Consequently, the Executive and the Company agree that it is
not possible to limit the geographic scope of the non-competition covenant contained in this Article IV to particular countries,
states, cities or other geographic subdivisions. Further, the Executive agrees that the length of the Non-Compete Term is reasonable,
in light of the position in which the Executive is being employed by the Company and the amount and duration of severance payments
payable to him under this Agreement.

 

article
v

 

GENERAL
MATTERS

 

Section 5.1
Governing Law. This Agreement shall be governed by the laws of the Commonwealth of Massachusetts and shall be construed
in accordance therewith.

 

Section 5.2
No Waiver. No provision of this Agreement may be waived except by an agreement in writing signed by the waiving party.
A waiver of any term or provision shall not be construed as a waiver of any other term or provision.

 

Section 5.3
Amendment. This Agreement may be amended, altered or revoked at any time, in whole or in part, only by a written instrument
setting forth such changes, signed by each of the parties.

 

Section 5.4
Benefit. This Agreement shall be binding upon the Executive and the Company, and shall not be assignable by either party
without the other party’s written consent.

 

Section 5.5
Text to Control. The headings of articles and sections are included solely for convenience in reference. If any conflict
between any heading and the text of this Agreement exists, the text shall control.

 

Section 5.6
Severability. If any provision of this Agreement is declared by any court of competent jurisdiction to be invalid for
any reason, such invalidity shall not affect the remaining provisions. On the contrary, such remaining provisions shall be fully
severable, and this Agreement shall be construed and enforced as if such invalid provisions had not been included in the Agreement.

 

Section 5.6
Entire Agreement. This Agreement constitutes the entire agreement between the Company and the Executive with respect
to the Executive’s employment by the Company and supersedes any and all prior agreements and understandings (whether written
or oral) between the parties with respect to such employment.

 

    	-6-

    	 

    
 

In Witness Whereof,
the Company and the Executive have executed this Agreement as of the date first above written.

 

	 	 	ThermoEnergy Corporation	 
	 	 	 	 
	 	 	 	 
	  /s/  James F. Wood                                    	 	By:   /s/ Cary G. Bullock                 	 
	        James F. Wood	 	       Cary G. Bullock	 
	 	 	       Chairman of the Board of Directors	 

 

    	-7-OCEAN CITY HOME BANK

THREE-YEAR CHANGE IN CONTROL AGREEMENT

 

This
AGREEMENT (the “Agreement”), by and between
Ocean City Home Bank (the
“Bank”), a federally-chartered savings bank with its principal offices at 1001 Asbury Avenue,
Ocean City, New Jersey 08226-3392 and Janet Bossi (“Executive”) and Ocean Shore Holding Co.
(the “Company”), a New Jersey corporation and the holding company of the Bank, as guarantor is entered into as of December
19, 2012.

 

WHEREAS, the
Bank recognizes the importance of Executive to the Bank’s operations and wishes to protect her position with the Bank in
the event of a change in control of the Bank or the Company for the period provided for in this Agreement; and

 

WHEREAS, Executive
and the Board of Directors of the Bank desire to enter into an agreement setting forth the terms and conditions of payments due
to Executive in the event of a change in control and the related rights and obligations of each of the parties.

 

NOW, THEREFORE,
in consideration of the promises and mutual covenants herein contained, it is hereby agreed as follows:

 

		1.	Term of Agreement.

 

(a)The term of
this Agreement shall be (i) the initial term, consisting of the period commencing on December 19, 2012 (the “Effective Date”)
and ending on December 19, 2015, plus (ii) any and all extensions of the initial term made pursuant to Section 1(b) of this Agreement.

 

(b)Commencing on
the first anniversary of the Effective Date and continuing each anniversary date thereafter, the Board of Directors of the Bank
(the “Board of Directors”) may extend the term of this Agreement for an additional one (1) year period beyond the then
effective expiration date, provided that Executive shall not have given at least sixty (60) days’ written notice of her desire
that the term not be extended.

 

(c)Notwithstanding
anything in this Section to the contrary, this Agreement shall terminate if Executive or the Bank terminates Executive’s
employment prior to a Change in Control.

 

		2.	Change in Control.

 

(a)Upon the occurrence
of a Change in Control of the Bank or the Company followed at any time during the term of this Agreement by the termination of
Executive’s employment in accordance with the terms of this Agreement, other than for Just Cause, as defined in Section 2(c)
of this Agreement, the provisions of Section 3 of this Agreement shall apply. Upon the occurrence of a Change in Control, Executive
shall have the right to elect to voluntarily terminate her employment for “Good Reason.”

 

For purposes of this
Agreement, “Good Reason” shall mean the occurrence of any of the following events without the Executive’s consent:

 

		(i)	The assignment to Executive of duties that constitute a material diminution
of Executive’s authority, duties, or responsibilities (including reporting requirements);

 

		(ii)	A material diminution in Executive’s base salary;

 

    	 

    	 

    
 

 

		(iii)	Relocation of Executive to a location outside a radius of thirty-five (35) miles of the Company’s
Ocean City, New Jersey office; or

 

		(iv)	Any other action or inaction by the Bank or the Company that constitutes a material breach of this
Agreement;

 

provided, that within
ninety (90) days after the initial existence of such event, the Bank shall be given notice and an opportunity, not less than thirty
(30) days, to effectuate a cure for such asserted “Good Reason” by Executive. Executive’s resignation hereunder
for Good Reason shall not occur later than one hundred fifty (150) days following the initial date on which the event Executive
claims constitutes Good Reason occurred.

 

(b)For purposes
of this Agreement, a “Change in Control” shall be deemed to occur on the earliest of any of the following events:

 

(i)Merger:
The Company merges into or consolidates with another corporation, or merges another corporation into 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 immediately before the merger or consolidation.

 

(ii)Acquisition
of Significant Share Ownership: The Company files, or is required to file, 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, if the schedule discloses
that the filing person or persons acting in concert has or have become the beneficial owner of 25% or more of a class of the Company’s
voting securities, but this clause (b) shall not apply to beneficial ownership of Company 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.

 

(iii)Change
in Board Composition: During any period of two consecutive years, individuals who constitute the Company’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 Board of
Directors; provided, however, that for purposes of this clause (iii), each director who is first elected by the board (or first
nominated by the board 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 shall be deemed to have also been a director at the beginning of such period; or

 

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

 

Notwithstanding anything
in this Agreement to the contrary, in no event shall the conversion of OC Financial MHC, the Bank and the Company from mutual holding
company form to stock holding company form (including without limitation, through the formation of a stock holding company) constitute
a “Change in Control” for purposes of this Agreement.

 

(c)Executive shall
not have the right to receive termination benefits pursuant to Section 3 hereof upon termination for Just Cause. The term “Just
Cause” shall mean termination because of Executive’s personal dishonesty, incompetence, willful misconduct, any breach
of fiduciary duty involving personal profit, intentional failure to perform stated duties, willful violation of any law, rule,
regulation (other than traffic violations or similar offenses), final cease and desist order, or any material breach of any provision
of this Agreement. Notwithstanding the foregoing, Executive shall not be deemed to have been terminated for Just Cause unless and
until there shall have been delivered to her a copy of a resolution duly adopted by the affirmative vote of a majority of the entire
membership of the Board of Directors at a meeting of the Board of Directors called and held for that purpose (after reasonable
notice to Executive and an opportunity for her, together with counsel, to be heard before the Board of Directors), finding that
in the good faith opinion of the Board of Directors, Executive was guilty of conduct justifying termination for Just Cause and
specifying the particulars thereof in detail. Executive shall not have the right to receive compensation or other benefits for
any period after termination for Just Cause. During the period beginning on the date of the Notice of Termination for Just Cause
pursuant to Section 4 hereof through the Date of Termination, stock options granted to Executive under any stock option plan shall
not be exercisable nor shall any unvested stock awards granted to Executive under any stock benefit plan of the Bank, the Company
or any subsidiary or affiliate thereof, vest. At the Date of Termination, such stock options and any such unvested stock awards
shall become null and void and shall not be exercisable by or delivered to Executive at any time subsequent to such termination
for Just Cause.

 

    	2

    	 

    
 

 

		3.	Termination Benefits.

 

(a)If, within one
(1) year of a Change in Control, Executive voluntarily terminates her employment with the Bank or the Company or if the Bank or
the Company involuntarily terminates her employment, Executive shall receive:

 

		(i)	a lump sum cash payment equal to three (3) times the Executive’s “base amount,”
within the meaning of Section 280G(b)(3) of the Internal Revenue Code of 1986, as amended (the “Code”). Such payment
shall be made not later than five (5) days following Executive’s termination of employment under this Section 3.

 

		(ii)	Continued benefit coverage under all Bank health and welfare plans which Executive participated
in as of the date of the Change in Control (collectively, the “Employee Benefit Plans”) for a period of thirty-six
(36) months following Executive’s termination of employment. Said coverage shall be provided under the same terms and conditions
in effect on the date of Executive’s termination of employment. Solely for purposes of benefits continuation under the Employee
Benefit Plans, Executive shall be deemed to be an active employee.

 

(b)Notwithstanding
the preceding provisions of this Section 3, in no event shall the aggregate payments or benefits to be made or afforded to Executive
under said paragraphs (the “Termination Benefits”) constitute an “excess parachute payment” under Section
280G of the Code or any successor thereto, and to avoid such a result, Termination Benefits will be reduced, if necessary, to an
amount (the “Non-Triggering Amount”), the value of which is one dollar ($1.00) less than an amount equal to three (3)
times Executive’s “base amount,” as determined in accordance with said Section 280G. The allocation of the reduction
required hereby among the Termination Benefits provided by this Section 3 shall be determined by Executive.

 

		4.	Notice of Termination.

 

(a)Any purported
termination by the Bank or by Executive shall be communicated by Notice of Termination to the other party hereto. For purposes
of this Agreement, a “Notice of Termination” shall mean a written notice which shall indicate the specific termination
provision in this Agreement relied upon and shall set forth in detail the facts and circumstances claimed to provide a basis for
termination of Executive’s employment under the provision so indicated.

 

    	3

    	 

    
 

 

(b)“Date
of Termination” shall mean the date specified in the Notice of Termination (which, in the case of a termination for Just
Cause, shall not be less than thirty (30) days from the date such Notice of Termination is given).

 

		5.	Source of Payments.

 

Unless otherwise determined
by the Board of Directors of the Company, all payments and benefits provided in this Agreement shall be paid or provided solely
by the Bank. Notwithstanding anything in this Agreement to the contrary, no provision of this Agreement shall be construed so as
to result in the duplication of any payment or benefit. Unless otherwise determined by the Board of Directors of the Company, the
Company’s sole obligation under this Agreement shall be to unconditionally guarantee the payment and provision of all amounts
and benefits due hereunder to Executive and, if such amounts and benefits due from the Bank are not timely paid or provided by
the Bank, such amounts and benefits shall be paid or provided by the Company.

 

		6.	Effect on Prior Agreements and Existing Benefit Plans.

 

This Agreement contains
the entire understanding between the parties hereto and supersedes any prior agreement 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 her without reference to this Agreement. Nothing in this Agreement shall confer upon Executive the right to continue in the
employ of the Bank or shall impose on the Bank any obligation to employ or retain Executive in its employ for any period.

 

		7.	No Attachment.

 

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

 

		8.	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 or as to any act other than that
specifically waived.

 

 

    	4

    	 

    

 

		9.	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.

 

		10.	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. In addition, references herein to the masculine shall apply to both the masculine and the
feminine.

 

		11.	Governing Law.

 

Except to the extent
preempted by federal law, the validity, interpretation, performance, and enforcement of this Agreement shall be governed by the
laws of the State of New Jersey, without regard to principles of conflicts of law of that State.

 

		12.	Arbitration.

 

Any dispute or controversy
arising under or in connection with this Agreement shall be settled exclusively by arbitration, conducted before a panel of three
arbitrators sitting in a location selected by Executive within fifty (50) miles from the location of the Bank, in accordance with
the rules of the American Arbitration Association then in effect. Judgment may be entered on the arbitrator’s award in any
court having jurisdiction; provided, however, that Executive shall be entitled to seek specific performance of her right to be
paid until the Date of Termination during the pendency of any dispute or controversy arising under or in connection with this Agreement.

 

		13.	Payment of Legal 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 Bank, only if Executive is successful pursuant to a legal judgment, arbitration or settlement.

 

		14.	Indemnification.

 

The Company or the
Bank shall provide Executive (including her heirs, executors and administrators) with coverage under a standard directors’
and officers’ liability insurance policy at its expense and shall indemnify Executive (and her heirs, executors and administrators)
to the fullest extent permitted under applicable law against all expenses and liabilities reasonably incurred by her in connection
with or arising out of any action, suit or proceeding in which she may be involved by reason of her having been a director or officer
of the Company or the Bank (whether or not she 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 cost of reasonable settlements.

 

    	5

    	 

    
 

 

		15.	Successors to the Bank and the Company.

 

The Bank and the Company
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 Bank or the Company, expressly and unconditionally to assume and agree to perform
the Bank’s and the Company’s obligations under this Agreement, in the same manner and to the same extent that the Bank
and the Company would be required to perform if no such succession or assignment had taken place.

 

		16.	Required
Provisions.

 

			In the event any of the foregoing provisions of this Section 16 are in conflict with the terms
of this Agreement, this Section 16 shall prevail.

 

		(a)	The Bank’s board of directors may terminate Executive’s employment at any time, but
any termination by the Bank, other than Termination for Cause, shall not prejudice Executive’s right to compensation or other
benefits under this Agreement. Executive shall not have the right to receive compensation or other benefits for any period after
Termination for Cause.

 

		(b)	If Executive is suspended from office and/or temporarily
prohibited from participating in the conduct of the Bank’s affairs by a notice served under Section 8(e)(3) or 8(g)(1) of
the Federal Deposit Insurance Act, 12 U.S.C. §1818(e)(3) or (g)(1); the Bank’s obligations under this contract shall
be suspended as of the date of service, unless stayed by appropriate proceedings. If the charges in the notice are dismissed,
the Bank may in its discretion: (i) pay Executive all or part of the compensation withheld while their contract obligations were
suspended; and (ii) reinstate (in whole or in part) any of the obligations which were suspended.

 

		(c)	If Executive is removed and/or permanently prohibited
from participating in the conduct of the Bank’s affairs by an order issued under Section 8(e)(4) or 8(g)(1) of the Federal
Deposit Insurance Act, 12 U.S.C. §1818(e)(4) or (g)(1), all obligations of the Bank under this contract shall terminate as
of the effective date of the order, but vested rights of the contracting parties shall not be affected.

 

		(d)	If the Bank is in default as defined in Section 3(x)(1)
of the Federal Deposit Insurance Act, 12 U.S.C. §1813(x)(1) all obligations of the Bank under this contract shall terminate
as of the date of default, but this paragraph shall not affect any vested rights of the contracting parties.

 

		(e)	All obligations under this contract shall be terminated, except to the extent determined that continuation
of the contract is necessary for the continued operation of the Bank: (i) by the Director of the OCC (or his designee), at the
time the FDIC or the Resolution Trust Corporation, at the time the FDIC enters into an agreement to provide assistance to or on
behalf of the Bank under the authority contained in Section 13(c) of the Federal Deposit Insurance Act, 12 U.S.C. §1823(c);
or (ii) by the Director of the OCC (or his designee) at the time the Director (or his designee) approves a supervisory merger to
resolve problems related to the operations of the Bank or when the Bank is determined by the Director to be in an unsafe or unsound
condition. Any rights of the parties that have already vested, however, shall not be affected by such action.

 

    	6

    	 

    
 

 

		(f)	Any payments made to employees Executive pursuant to
this Agreement, or otherwise, are subject to and conditioned upon their compliance with 12 U.S.C. §1828(k) and FDIC regulation
12 C.F.R. Part 359, Golden Parachute and Indemnification Payments.

 

		17.	Section 409A of the Code.

 

(a)This
Agreement is intended to comply with the requirements of Section 409A of the Code, and specifically, with the “short-term
deferral exception” under Treasury Regulation Section 1.409A-1(b)(4) and the “separation pay exception” under
Treasury Regulation Section 1.409A-1(b)(9)(iii), and shall in all respects be administered in accordance with Section 409A of
the Code. If any payment or benefit hereunder cannot be provided or made at the time specified herein without incurring sanctions
on Executive under Section 409A of the Code, then such payment or benefit shall be provided in full at the earliest time thereafter
when such sanctions will not be imposed. For purposes of Section 409A of the Code, all payments to be made upon a termination
of employment under this Agreement may only be made upon a “separation from service” (within the meaning of such term
under Section 409A of the Code), each payment made under this Agreement shall be treated as a separate payment, the right to a
series of installment payments under this Agreement (if any) is to be treated as a right to a series of separate payments, and
if a payment is not made by the designated payment date under this Agreement, the payment shall be made by December 31 of the
calendar year in which the designated date occurs. To the extent that any payment provided for hereunder would be subject to additional
tax under Section 409A of the Code, or would cause the administration of this Agreement to fail to satisfy the requirements of
Section 409A of the Code, such provision shall be deemed null and void to the extent permitted by applicable law, and any such
amount shall be payable in accordance with subsection (b) below. In no event shall Executive, directly or indirectly, designate
the calendar year of payment.

 

(b)If
when separation from service occurs Executive is a “specified employee” within the meaning of Section 409A of the
Code, and if the cash severance payment under Section 3(a)(i) of this Agreement would be considered deferred compensation under
Section 409A of the Code, and, finally, if an exemption from the six-month delay requirement of Section 409A(a)(2)(B)(i) of the
Code is not available (i.e., the “short-term deferral exception” under Treasury Regulations Section 1.409A-1(b)(4)
or the “separation pay exception” under Treasury Section 1.409A-1(b)(9)(iii)), the Bank will make the maximum severance
payment possible in order to comply with an exception from the six month requirement and make any remaining severance payment
under Section 3(a)(i) of this Agreement to Executive in a single lump sum without interest on the first payroll date that occurs
after the date that is six (6) months after the date on which Executive separates from service.

 

(c)If
(x) under the terms of the applicable policy or policies for the insurance or other benefits specified in Section 3(a)(ii) of
this Agreement it is not possible to continue coverage for Executive and her dependents, or (y) when a separation from service
occurs Executive is a “specified employee” within the meaning of Section 409A of the Code, and if any of the continued
insurance coverage or other benefits specified in Section 3(a)(ii) of this Agreement would be considered deferred compensation
under Section 409A of the Code, and, finally, if an exemption from the six-month delay requirement of Section 409A(a)(2)(B)(i)
of the Code is not available for that particular insurance or other benefit, the Bank shall pay to Executive in a single lump
sum an amount in cash equal to the present value of the Bank’s projected cost to maintain that particular insurance benefit
(and associated income tax gross-up benefit, if applicable) had Executive’s employment not terminated, assuming continued
coverage for 36 months. The lump-sum payment shall be made thirty (30) days after employment termination or, if Section 17(b)
of this Agreement applies, on the first payroll date that occurs after the date that is six (6) months after the date on which
Executive separates from service.

 

(d)References
in this Agreement to Section 409A of the Code include rules, regulations, and guidance of general application issued by the Department
of the Treasury under Internal Revenue Section 409A of the Code.

    	7

    	 

    

SIGNATURES

 

IN WITNESS WHEREOF,
Ocean City Home Bank and Ocean Shore Holding Co. have caused this Agreement to be executed and their seals to be affixed hereunto
by their duly authorized officers, and Executive has signed this Agreement, on December 19, 2012.

 

	ATTEST:	OCEAN CITY HOME BANK	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	/s/Kim M. Davidson              	By:	/s/Steven E. Brady                         	 
	Corporate Secretary	 	For the Entire Board of Directors	 
	 	 	 	 
	 	 	 	 
	ATTEST:	OCEAN SHORE HOLDING CO.	 
	 	   (Guarantor)	 
	 	 	 	 
	 	 	 	 
	/s/Kim M. Davidson              	By:	/s/Steven E. Brady                        	 
	Corporate Secretary	 	For the Entire Board of Directors	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	[SEAL]	 	 
	 	 	 	 
	 	 	 	 
	WITNESS:	EXECUTIVE	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	/s/Jennifer DiTroia               	/s/Janet Bossi                                     	 
	 	Janet Bossi	 

 

    	8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00211-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00211-of-00352.parquet"}]]