Document:

SOUTHWEST GEORGIA FINANCIAL CORPORATION

RESTRICTED STOCK AWARD AGREEMENT 

THIS RESTRICTED STOCK AWARD AGREEMENT,
(this “Agreement”), dated as of             
(the “Date of Grant”), is made by and between Southwest Georgia Financial Corporation (the “Company”),
and                     
(the “Grantee”).

WHEREAS, the Company has adopted the
2013 Omnibus Incentive Plan (the “Plan”), pursuant to which the Company may grant Restricted Stock Awards;

WHEREAS, the Company desires to grant
to the Grantee a Restricted Stock Award with respect to the number of shares of Common Stock provided for herein;

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

Section 1. Grant of Restricted Stock Award

(a) Grant of Restricted Stock Award.
The Company hereby grants to the Grantee                     
shares of the Common Stock of the Company (the “Shares”) on the terms and conditions set forth in this Agreement and
as otherwise provided in the Plan. The Shares shall be nontransferable and forfeitable until the time they vest and become non-forfeitable
as set forth in Section 2(e) below.

(b) Incorporation of Plan; Capitalized
Terms. The provisions of the Plan are hereby incorporated herein by reference. Except as otherwise expressly set forth herein,
this Agreement shall be construed in accordance with the provisions of the Plan and any capitalized terms not otherwise defined
in this Agreement shall have the definitions set forth in the Plan. The Administrator shall have final authority to interpret and
construe the Plan and this Agreement and to make any and all determinations thereunder, and its decision shall be binding and conclusive
upon the Grantee and his/her legal representative in respect of any questions arising under the Plan or this Agreement.

Section 2. Terms and Conditions of Award

The Restricted Stock Award (the “Award)
provided in Section 1(a) shall be subject to the following terms, conditions and restrictions:

(a) Ownership of Shares. Subject
to the restrictions set forth in the Plan and Section 2(c) of this Agreement, while the Shares remain subject to forfeiture in
accordance with the terms of this Agreement, the Grantee shall possess all incidents of ownership of the Shares subject to the
Restricted Stock Award granted hereunder, including, without limitation, (i) the right to vote such Shares, and (ii) subject
to Section 2(b) of this Agreement, the right to receive dividends with respect to such Shares of Restricted Stock (but only
to the extent declared and paid to holders of Common Stock by the Company in its sole discretion), provided, however, that
any such dividends shall be treated, to the extent required by applicable law, as additional compensation, subject to required
withholdings, for tax purposes if paid on the Shares.

(b) Dividends. Any dividends payable
with respect to the Shares (whether such dividends are paid in cash, stock or other property) (i) shall be subject to the
same restrictions (including the risk of forfeiture) as the Shares with regard to which they are issued; (ii) shall herein
be encompassed within the term “Restricted Stock Award”; (iii) shall be held by the Company for the Grantee prior
to vesting; and (iv)  shall be paid or otherwise released to the Grantee, without interest, promptly (and no later than thirty
(30) days) after the vesting of the Shares with regard to which they were issued. Notwithstanding the foregoing, however, no such
dividends will be paid with respect to any Shares that do not become vested and non-forfeitable.

 

(c) Restrictions. The Shares subject
to this Restricted Stock Award and any rights and interests therein, may not be sold, assigned, transferred, pledged, exchanged,
hypothecated or otherwise disposed of, except by will or the laws of descent and distribution, during the Restricted Period while
they remain subject to forfeiture. Notwithstanding the foregoing, however, Grantee, with the approval of the Compensation Committee,
may transfer such Shares for no consideration to or for the benefit of Grantee’s immediate family members or trusts or other
entities on behalf of Grantee and/or immediate family members, subject to such limits as the Committee may establish, and the transferee(s)
shall remain subject to all the terms and conditions applicable to the Shares prior to transfer (including, without limitation,
the provisions regarding vesting and forfeiture), except such transferee may not transfer the Shares except by will or the laws
of descent and distribution while they remain subject to forfeiture. No right or interest of Grantee or any transferee in the Shares
shall be subject to any lien or any obligation or liability of the Grantee or any transferee. Any attempt to dispose of any Shares
subject to the Restricted Stock Award in contravention of the above restriction shall be null and void and without effect.

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(d) Certificate; Book Entry Form;
Legend. The Company shall issue the Shares subject to this Restricted Stock Award either (i) in certificate form, in which
event the Company shall retain custody of any such certificates evidencing the Shares, or (iii) in book entry form, registered
in the name of the Grantee, with legends, or notations, as applicable, referring to the terms, conditions and restrictions applicable
to the Award, until the Shares vest and become non-forfeitable. The Grantee agrees that any certificate issued for Restricted Stock
prior to the lapse of any outstanding restrictions relating thereto shall be inscribed with the following legend:

This certificate and the shares of stock represented
hereby are subject to the terms and conditions, including forfeiture provisions and restrictions against transfer (the “Restrictions”),
contained in the 2013 Omnibus Incentive Plan, as amended, and an agreement entered into between the registered owner and the Company.
Any attempt to dispose of these shares in contravention of the Restrictions, including by way of sale, assignment, transfer, pledge,
hypothecation or otherwise, shall be null and void and without effect.

With respect to any Shares forfeited under this Agreement,
Grantee does hereby irrevocably constitute and appoint the Secretary of the Company or any successor Secretary of the Company (the
“Secretary”) as his attorney to transfer the forfeited Shares on the books of the Company with full power of substitution
in the premises. The Secretary shall use such authority to cancel any Shares that are forfeited under this Agreement.

(e) Lapse of Restrictions. Subject
to Section 2(f) below, one-fifth (1/5) of the number of Shares subject to this Restricted Stock Award issued hereunder (rounded
down to the nearest whole Share, if necessary) shall vest and become non-forfeitable, and the restrictions with respect to such
portion of the Restricted Stock Award shall lapse, on each of the first four (4) anniversaries of the Date of Grant and the remaining
Shares shall vest and become non-forfeitable, and the restrictions with respect to such remaining portion of the Restricted Stock
Award shall lapse, on the fifth (5TH) anniversary of the Date of Grant, provided Grantee remains in the continuous employ
of the Company or an Affiliate from the Date of Grant through such date(s).

Upon the lapse of restrictions relating
to any Shares subject to this Restricted Stock Award, the Company shall, as applicable, either remove the notations on any such
Shares of Common Stock issued in book-entry form or deliver to the Grantee or the Grantee’s personal representative a stock
certificate representing such Shares of Common Stock, free of the restrictive legend described in Section 2(d), equal to the
number of Shares of Common Stock with respect to which such restrictions have lapsed.

(f) Termination of Employment.
Notwithstanding Section 2(c) and (e), in the event of the termination of the Grantee’s employment or service with the
Company and its Affiliates for any reason prior to the lapsing of restrictions in accordance with Section 2(e) with respect
to any portion of the Shares subject to this Restricted Stock Award granted hereunder, such portion of the Shares subject to this
Restricted Stock Award held by the Grantee shall be automatically forfeited by the Grantee as of the date of termination.

Any Shares forfeited pursuant to this
Agreement shall be transferred to, and reacquired by, the Company without payment of any consideration by the Company, and neither
the Grantee nor any of the Grantee’s successors, heirs, assigns or personal representatives shall thereafter have any further
rights or interests in such Shares.

(g) Corporate Transactions. The
following provisions shall apply to the corporate transactions described below:

(i) If the outstanding shares
of Common Stock are changed into or exchanged for a different number or kind of shares or other securities of the Company by reason
of any recapitalization, reclassification, stock split, stock dividend, combination, subdivision or similar transaction, then,
subject to any required action by the Company’s shareholders, the number of Shares and the kind of shares or other securities
of the Company that are subject to this Agreement are to be proportionately adjusted; except that no fractional shares are to be
issued or made subject to this Agreement in making the foregoing adjustments.

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(ii) If, while all or any portion
of the Shares remain non-transferable and forfeitable, the Company proposes to merge or consolidate with another corporation, whether
or not the Company is to be the surviving corporation, or if the Company proposes to liquidate or sell or otherwise dispose of
substantially all of its assets or substantially all of the outstanding shares of Common Stock are to be sold, or a Change in Control
(within the meaning of the Plan) occurs, then the Committee may, in its sole discretion, either (i) make appropriate provision
for the protection of the Shares by the substitution on an equitable basis of (A) appropriate stock of the surviving corporation
or its parent in the merger or consolidation or other reorganized corporation that will be issuable in respect to the Shares when
they vest, or (B) any alternative consideration as the Committee, in good faith, may determine to be equitable in the circumstances;
and, in either case, require in connection therewith the surrender of the Shares so replaced; or (ii) provide that the unvested
and forfeitable portion of the Shares become vested and non-forfeitable within a specified number of days of the date of such notice
or immediately prior to the consummation of such transaction or event (to the extent the Shares will not otherwise vest and become
non-forfeitable on the consummation of such transaction or event).

(iii)  All adjustments
made or actions taken by the Committee under this Section 2(g) will be final, conclusive and binding upon Grantee and made in accordance
with the Plan.

(h) Taxes. The Company’s
obligation to deliver the certificates for the Shares upon vesting is subject to Grantee’s satisfaction of any applicable
federal, state and local income and employment tax and withholding requirements in a manner and form satisfactory to the Company.
In accordance with procedures that the Committee may establish, the Committee, to the extent applicable law permits, may allow
Grantee or Grantee’s transferee(s) to pay such amounts (but only for the minimum required withholdings unless additional
withholdings will not result in adverse financial accounting consequences to the Company) (i) by surrendering (actually or by attestation)
shares of Common Stock that Grantee already owns, (ii) by a cashless exercise through a broker, (iii) by means of a "net settlement"
procedure or (iv) by such other medium of payment as the Committee in its discretion shall authorize.

(i) Section 83(b) Election.
The Grantee hereby acknowledges that he or she may file an election pursuant to Section 83(b) of the Code to be taxed currently
on the fair market value of the Shares (less any purchase price paid for the Shares), provided that such election must be filed
with the Internal Revenue Service no later than thirty (30) days after the Date of Grant of such Restricted Stock Award.
The Grantee will seek the advice of his or her own tax advisors as to the advisability of making such a Section 83(b) election,
the potential consequences of making such an election, the requirements for making such an election, and the other tax consequences
of the Restricted Stock Award under federal, state, and any other laws that may be applicable. The Company and its affiliates and
agents have not and are not providing any tax advice to the Grantee. Notwithstanding any other provision of this Agreement, Grantee
shall be responsible for satisfying in cash or cash equivalent any applicable federal, state and local income and employment tax
and withholding requirements attributable to the making of any election pursuant to Section 83(b) of the Code with respect to the
Restricted Stock Award.

Section 3. Miscellaneous

(a) Notices. Any and all notices,
designations, consents, offers, acceptances and any other communications provided for herein shall be given in writing and shall
be delivered either personally or by registered or certified mail, postage prepaid, which shall be addressed, in the case of the
Company to both the Chief Financial Officer and the General Counsel of the Company at the principal office of the Company and,
in the case of the Grantee, to the Grantee’s address appearing on the books of the Company or to the Grantee’s residence
or to such other address as may be designated in writing by the Grantee. Notices may also be delivered to the Grantee, during his
or her employment, through the Company’s inter-office or electronic mail systems.

(b) No Right to Continued Employment.
Nothing in the Plan or in this Agreement shall confer upon the Grantee any right to continue in the employ of the Company or any
Affiliate or shall interfere with or restrict in any way the right of the Company or any Affiliate, which is hereby expressly reserved,
to remove, terminate or discharge the Grantee at any time for any reason whatsoever, with or without Cause and with or without
advance notice.

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(c) Bound by Plan. By signing
this Agreement, the Grantee acknowledges that he/she has received a copy of the Plan and has had an opportunity to review the
Plan and agrees to be bound by all the terms and provisions of the Plan.

(d) Other Employee Benefits. The
amount of any compensation deemed to be received by Grantee as a result of the vesting of the Shares or the payment of any dividends
hereunder will not constitute "earnings" with respect to which any other benefits of the Grantee are determined, including,
without limitation, benefits under any pension, profit sharing, life insurance or salary continuation plan.

(e) Imposition of Other Requirements.
If the Grantee relocates to another country after the Date of Grant, the Company reserves the right to impose other requirements
on the Grantee’s participation in the Plan, to the extent the Company determines it is necessary or advisable in order to
comply with local law or facilitate the administration of the Plan, and to require the Grantee to sign any additional agreements
or undertakings that may be necessary to accomplish the foregoing.

 

(f) Successors. The terms of this Agreement
shall be binding upon and inure to the benefit of the Company, its successors and assigns, and of the Grantee and the beneficiaries,
executors, administrators, heirs and successors of the Grantee.

(g) Invalid Provision. The invalidity
or unenforceability of any particular provision thereof shall not affect the other provisions hereof, and this Agreement shall
be construed in all respects as if such invalid or unenforceable provision had been omitted. (h) Section 409A. It is intended
that the Shares granted hereunder, and the rights to receive any dividends with respect to the Shares, be exempt from the requirements
applicable to nonqualified deferred compensation requirements subject to Section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”). For purposes of this Agreement, any action taken hereunder shall be undertaken in a manner that
will not negatively affect the status of the Shares as exempt from treatment as deferred compensation subject to Section 409A of
the Code unless such action otherwise complies with Section 409A of the Code to the extent necessary to avoid noncompliance. Notwithstanding
the foregoing, neither the Company, any Affiliate nor their employees, officers, directors or agents will have any liability to
the Grantee or any transferee if the Shares otherwise fail to be exempt from, or comply with, Section 409A of the Code.

(i) Modifications. No change,
modification or waiver of any provision of this Agreement shall be valid unless the same is in writing and signed by the parties
hereto.

(j) Entire Agreement. This Agreement
and the Plan contain the entire agreement and understanding of the parties hereto with respect to the subject matter contained
herein and therein and supersede all prior communications, representations and negotiations in respect thereto.

(k) Governing Law. This Agreement
and the rights of the Grantee hereunder shall be construed and determined in accordance with the laws of the State of Georgia.

(l) Headings. The headings of
the Sections hereof are provided for convenience only and are not to serve as a basis for interpretation or construction, and shall
not constitute a part, of this Agreement.

(m) Counterparts. This Agreement
may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and
the same instrument.

[Signature Page
to Follow]

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By Grantee’s signature and the
signature of the Company’s representative below, or by Grantee’s acceptance of this Award through the Company’s
online acceptance procedure, this Agreement shall be deemed to have been executed and delivered by the parties hereto as of the
Date of Grant.

 

      

 

	 	SOUTHWEST GEORGIA FINANCIAL CORPORATION
	 	
        By:

        

	 	
        Its:

        

	 	Printed Name:
	 	 
	 	Grantee
	 	
        By: 

        

	 	
        Printed Name:Exhibit 10.1

PRUDENTIAL BANK

SEVERANCE AGREEMENT

This Severance Agreement (the "Agreement") dated as of March 26, 2018 is between Prudential Bank, a Pennsylvania‐chartered, stock-form savings bank (the "Bank" or the "Employer"), and Kevin Gallagher (the "Executive").

WHEREAS, the Executive is presently employed as Senior Vice President, Chief Lending Officer of the Bank;

WHEREAS, the Employer desires to be ensured of the Executive's continued active participation in the business of the Employer;

WHEREAS, in order to induce the Executive to remain in the employ of the Employer and in consideration of the Executive's agreeing to remain in the employ of the Employer, the parties desire to specify the severance benefits which shall be due the Executive in the event that his employment with the Employer is terminated under specified circumstances; and

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

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

1. Definitions.  The following words and terms shall have the meanings set forth below for the purposes of this Agreement:

(a) Average Annual Compensation.  The Executive's "Average Annual Compensation" for purposes of this Agreement shall be deemed to mean the average amount of Base Salary and cash bonus received by the Executive from the Employer or any subsidiary thereof (excluding any deferred amounts) during the most recent five calendar years immediately preceding the Date of Termination (or such shorter period as the Executive was employed).

(b) Base Salary.  "Base Salary" shall mean the amount per calendar year that the Bank pays Executive for his services, which amount may be adjusted from time to time as determined by the Board of Directors, subject to the provisions hereof.

(c) Cause. Termination of the Executive's employment for "Cause" shall mean termination because of personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, willful violation of any law, rule or regulation (other than traffic violations or similar offenses) or final cease-and-desist order, willful conduct which is materially detrimental (monetarily or otherwise) to the Employer or material breach of any provision of this Agreement.

(d) Change in Control.  "Change in Control" shall mean a change in the ownership of the Corporation or the Bank, a change in the effective control of the Corporation or the Bank or a change in the ownership of a substantial portion of the assets of the Corporation or the Bank, in each case as provided under Section 409A of the Code and the regulations thereunder.

(e) Code.  "Code" shall mean the Internal Revenue Code of 1986, as amended.

(f) Corporation.  "Corporation" shall mean Prudential Bancorp, Inc., the holding company for the Bank, or any successor thereto.

(g) Date of Termination.  "Date of Termination" shall mean (i) if the Executive's employment is terminated for Cause, the date on which the Notice of Termination is given, and (ii) if the Executive's employment is terminated for any other reason, the date specified in such Notice of Termination.

(h) Disability. "Disability" shall mean the Executive (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, or (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees of the Bank.

(j) Good Reason.  "Good Reason" means the occurrence of any of the following events:

	
 

	
          (i)   any material breach of this Agreement by the Employer, including without limitation any of the following: (A) a material diminution in the Executive's base compensation, (B) a material diminution in the Executive's authority, duties or responsibilities, or (C) a material diminution in the authority, duties or responsibilities of the supervisor to whom the Executive is required to report, or

	
 

	
          (ii)   any material change in the geographic location at which the Executive must perform his services under this Agreement;

provided, however, that prior to any termination of employment for Good Reason, the Executive must first provide written notice to the Employer within ninety (90) days of the initial existence of the condition, describing the existence of such condition, and the Employer shall thereafter have the right to remedy the condition within thirty (30) days of the date the Employer received the written notice from the Executive.  If the Employer remedies the condition within such thirty (30) day cure period, then no Good Reason shall be deemed to exist with respect to such condition.  If the Employer does not remedy the condition within such thirty (30) day cure period, then the Executive may deliver a Notice of Termination for Good Reason at any time within sixty (60) days following the expiration of such cure period.

(k) Notice of Termination.  Any purported termination of the Executive's employment by the Employer for any reason, including without limitation for Cause, Disability or Retirement, or by the Executive for any reason, including without limitation for Good Reason, shall be communicated by a written "Notice of Termination" to the other party hereto.  For purposes of this Agreement, a "Notice of Termination" shall mean a dated notice which (i) indicates the specific termination provision in this Agreement relied upon, (ii) sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive's employment under the provision so indicated, (iii) specifies a Date of Termination, which shall be not less than thirty (30) nor more than ninety (90) days after such Notice of Termination is given, except in the case of the Employer's termination of the Executive's employment for Cause, which shall be effective immediately; and (iv) is given in the manner specified in Section 8 hereof.

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(l) Retirement.  "Retirement" shall mean voluntary termination by the Executive in accordance with the Employer's retirement policies, including early retirement, generally applicable to the Employer's salaried employees.

2. Term of Agreement.

Subject to the terms hereof, the term of this Agreement shall commence on the date hereof and terminate on December 31, 2019. Beginning on December 31, 2019 and on each December 31st thereafter, the term of this Agreement shall be extended for a period of one additional year, provided that the Employer has not given notice to the Executive in writing at least 30 days prior to such day that the term of this Agreement shall not be extended further and/or the Executive has not given notice to the Employer of his election not to extend the term at least thirty (30) days prior to any such December 31st; provided, however, notwithstanding the foregoing to the contrary, if a Change in Control occurs during the term of this Agreement, then the remaining term of this Agreement shall be automatically extended until the one-year anniversary of the completion of the Change in Control. If any party gives timely notice that the term will not be extended as of any such December 31st, then this Agreement shall terminate at the conclusion of its remaining term.  References herein to the term of this Agreement shall refer both to the initial term and successive terms.

3. Benefits Upon Termination in Connection with or Following a Change in Control.

(a) If the Executive's employment is terminated by the Employer in connection with or subsequent to a Change in Control by (i) the Employer other than for Cause, Disability, Retirement or as a result of Executive's death or (ii) such employment is terminated by the Executive for Good Reason, then the Employer shall, subject to the provisions of Section 4 hereof, if applicable:

        (A)             pay to the Executive, in a lump sum within five (5) business days following the Date of Termination, a cash severance amount equal to one (1) times the Executive's Average Annual Compensation;

    (B) maintain and provide for a period ending at the earlier of (i) one (1) year subsequent to the Date of Termination or (ii) the date of the Executive's full-time employment by another employer (provided that the Executive is entitled under the terms of such employment to benefits substantially similar to those described in this subparagraph (B)), at no cost to the Executive, the Executive's continued participation in all group insurance, life insurance, health, dental and accident insurance, and disability insurance plans offered by the Employer in which the Executive was participating immediately prior to the Date of Termination; in each case subject to clauses (C) and (D) of this Section 3(a);

    (C) in the event that the continued participation of the Executive in any group insurance plan as provided in clause (B) of this Section 3(a) is barred or would trigger the payment of an excise tax under Section 4980D of the Code, or during the period set forth in Section 3(a)(B) any such group insurance plan is discontinued, then the Bank shall at its election either (i) arrange to provide the Executive with alternative benefits substantially similar to those which the Executive was entitled to receive under such group insurance plans immediately prior to the Date of Termination, provided that the alternative benefits do not trigger the payment of an excise tax under Section 4980D of the Code, or (ii) pay to the Executive within 10 business days following the Date of Termination (or within 10 business days following the discontinuation of the benefits if later) a lump sum cash amount equal to the projected cost to the Bank of providing continued coverage to the Executive until the one-year anniversary of his Date of Termination, with the projected cost to be based on the costs being incurred immediately prior to the Date of Termination (or the discontinuation of the benefits if later);

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    (D) any insurance premiums payable by the Bank pursuant to Section 3(a)(B) or (C) shall be payable at such times and in such amounts (except that the Employer shall also pay any employee portion of the premiums) as if the Executive was still an employee of the Bank, subject to any increases in such amounts imposed by the insurance company or COBRA, and the amount of insurance premiums required to be paid by the Bank in any taxable year shall not affect the amount of insurance premiums required to be paid by the Bank in any other taxable year; and

    (E) pay to the Executive, in a lump sum within five (5) business days following the Date of Termination, a cash amount equal to the projected cost to the Employer of providing benefits to the Executive for a period of twelve (12) months pursuant to any other employee benefit plans, programs or arrangements offered by the Employer in which the Executive was entitled to participate immediately prior to the Date of Termination (other than stock option plans, restricted stock plans or retirement plans of the Employer or the Corporation), with the projected cost to the Employer to be based on the costs incurred for the calendar year immediately preceding the year in which the Date of Termination occurs, and with any automobile-related costs to exclude any depreciation on Bank-owned automobiles.

(b) Notwithstanding any other provision contained in this Agreement, if either (i) the time period for making any cash payment under subsections (A), (C) and (E) of Section 3(a) commences in one calendar year and ends in the succeeding calendar year or (ii) in the event any payment under this Section 3 is made contingent upon the execution of a general release and the time period that the Executive has to consider the terms of such general release (including any revocation period under such release) commences in one calendar year and ends in the succeeding calendar year, then the payment shall not be paid until the succeeding calendar year.

4. Limitation of Benefits under Certain Circumstances.  If the payments and benefits pursuant to Section 3 hereof, either alone or together with other payments and benefits which the Executive has the right to receive from the Employer and the Corporation, would constitute a "parachute payment" under Section 280G of the Code, then the payments and benefits payable by the Employer pursuant to Section 3 hereof shall be reduced by the minimum amount necessary to result in no portion of the payments and benefits payable by the Employer under Section 3 being non‐deductible to the Employer pursuant to Section 280G of the Code and subject to the excise tax imposed under Section 4999 of the Code.  If the payments and benefits under Section 3 are required to be reduced, the cash severance shall be reduced first, followed by a reduction in the fringe benefits.  The determination of any reduction in the payments and benefits to be made pursuant to Section 3 shall be based upon the opinion of independent tax counsel selected by the Employer and paid by the Employer.  Such counsel shall promptly prepare the foregoing opinion, but in no event later than thirty (30) days from the Date of Termination, and may use such actuaries as such counsel deems necessary or advisable for the purpose.  Nothing contained in this Section 4 shall result in a reduction of any payments or benefits to which the Executive may be entitled upon termination of employment under any circumstances other than as specified in this Section 4, or a reduction in the payments and benefits specified in Section 3 below zero.

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5. Mitigation; Exclusivity of Benefits.

(a) The Executive shall not be required to mitigate the amount of any benefits hereunder by seeking other employment or otherwise, nor shall the amount of any such benefits be reduced by any compensation earned by the Executive as a result of employment by another employer after the Date of Termination or otherwise, except as set forth in Section 3(a)(B)(ii) above.

(b) The specific arrangements referred to herein are not intended to exclude any other benefits which may be available to the Executive upon a termination of employment with the Employer pursuant to employee benefit plans of the Employer or otherwise.

6. Withholding.  All payments required to be made by the Employer hereunder to the Executive shall be subject to the withholding of such amounts, if any, relating to tax and other payroll deductions as the Employer may reasonably determine should be withheld pursuant to any applicable law or regulation.

7. Assignability.  The Employer may assign this Agreement and its rights and obligations hereunder in whole, but not in part, to any corporation, bank or other entity with or into which the Employer may hereafter merge or consolidate or to which the Employer may transfer all or substantially all of its assets, if in any such case said corporation, bank or other entity shall by operation of law or expressly in writing assume all obligations of the Employer hereunder as fully as if it had been originally made a party hereto, but may not otherwise assign this Agreement or its rights and obligations hereunder.  The Executive may not assign or transfer this Agreement or any rights or obligations hereunder.

8. 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:

		To the Employer:	
President and Chief Executive Officer

Prudential Bank

1834 West Oregon Avenue

Philadelphia, Pennsylvania 19145

To the Executive:          Kevin Gallagher

At the address last appearing on the

personnel records of the Employer

9. Amendment; Waiver.  No provisions of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by the Executive and such officer or officers as may be specifically designated by the Board of Directors of the Employer to sign on its behalf.  No waiver by any party hereto at any time of any breach by any other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.  In addition, notwithstanding anything in this Agreement to the contrary, the Employer may amend in good faith any terms of this Agreement, including retroactively, in order to comply with Section 409A of the Code.

 

  

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10. Governing Law.  The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the United States where applicable and otherwise by the substantive laws of the Commonwealth of Pennsylvania.

11. Nature of Obligations.

(a) Nothing contained herein shall be deemed to create other than a terminable at will employment relationship between the Employer and the Executive, and the Employer may terminate the Executive's employment at any time, subject to providing any payments specified herein in accordance with the terms hereof.

(b) Nothing contained herein shall create or require the Employer to create a trust of any kind to fund any benefits which may be payable hereunder, and to the extent that the Executive acquires a right to receive benefits from the Employer hereunder, such right shall be no greater than the right of any unsecured general creditor of the Employer.

12. Headings.  The section headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

13. Validity.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provisions of this Agreement, which shall remain in full force and effect.

14. Changes in Statutes or Regulations. If any statutory or regulatory provision referenced herein is subsequently changed or re-numbered, or is replaced by a separate provision, then the references in this Agreement to such statutory or regulatory provision shall be deemed to be a reference to such section as amended, re-numbered or replaced.

15. Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.

16. Regulatory Prohibition.  Notwithstanding any other provision of this Agreement to the contrary, any renewal of this Agreement and any payments made to the Executive pursuant to this Agreement, or otherwise, are subject to and conditioned upon their compliance with Section 18(k) of the FDIA (12 U.S.C. §1828(k)) and the regulations promulgated thereunder, including 12 C.F.R. Part 359.  In the event of the Executive's termination of employment with the Bank for Cause, all employment relationships and managerial duties with the Bank shall immediately cease regardless of whether the Executive is in the employ of the Corporation following such termination.  Furthermore, following such termination for Cause, the Executive will not, directly or indirectly, influence or participate in the affairs or the operations of the Bank.

17. Payment of Costs and Legal Fees and Reinstatement of Benefits.  In the event any dispute or controversy arising under or in connection with the Executive's termination is resolved in favor of the Executive, whether by judgment, arbitration or settlement, the Executive shall be entitled to the payment of (a) all legal fees incurred by the Executive in resolving such dispute or controversy, and (b) any back-pay, including Base Salary, bonuses and any other cash compensation, fringe benefits and any compensation and benefits due to the Executive under this Agreement.

 

  

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18. Entire Agreement.  This Agreement embodies the entire agreement between the Employer and the Executive with respect to the matters agreed to herein. All prior agreements, if any, between the Employer and the Executive with respect to the matters agreed to herein are hereby superseded and shall have no force or effect.

[signature page follows]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

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

 

 

	
ATTEST: 

	 	
PRUDENTIAL BANK 

	 	 	 	 	 
	 	 	 	 	 
	
By:

	
/s/Sharon Slater

	 	
By:

	
/s/Dennis Pollack

	
Name:

	
Sharon Slater

	 	
 

	
Dennis Pollack

	
Title:

	
Corporate Secretary

	 	
 

	
President and Chief Executive Officer

	 	 	 	 	 
	 	 	 	 	 
	 	 	 	
EXECUTIVE 

	 	 	 	 	 
	 	 	 	 	 
	 	 	 	
By:

	
/s/Kevin Gallagher

	 	 	 	 	
Kevin Gallagher

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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