Document:

Exhibit 10.5

 

Hanover
COmmunity Bank

 

2015 RESTRICTED STOCK PLAN 

 

Section 1. Purpose

 

The
Hanover Community Bank 2015 Restricted Stock Plan (the "Plan") is hereby established to foster and promote the long-term
success of Hanover Community Bank (the “Bank”), and its shareholders by providing members of management, including
employees and management officials, with an equity interest in the Bank. The Plan will assist the Bank in attracting and retaining
the highest quality of experienced persons to serve as employees and Directors and in aligning the interests of such persons more
closely with the interests of the Bank's shareholders by encouraging such parties to maintain an equity interest in the Bank.

 

Section 2. Definitions

 

Capitalized terms not
specifically defined elsewhere herein shall have the following meaning:

 

"Act" means
the Securities Exchange Act of 1934, as amended from time to time, and any rules and regulations promulgated thereunder.

 

“Award” means
a grant of shares of Common Stock pursuant to Section 6 hereof.

 

"Bank" means
Hanover Community Bank and any present or future subsidiary or parent corporations of Hanover Community Bank (as defined in Section
424 of the Code) or any successor to such corporations.

 

"Board" means
the Board of Directors of the Bank.

 

"Code" means
the Internal Revenue Code of 1986, as amended from time to time, and the regulations promulgated thereunder.

 

"Common Stock"
or "Stock" means the common stock of the Bank.

 

"Disability"
shall mean (i) the inability of a Participant 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) if the Participant 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. The determination of whether a Disability exists will be made by the Board.

 

"Management Official"
means an employee of the Bank, a non-employee member of the Board, a member of any advisory Board or any other service provider
to the Bank.

 

"Participant"
means a Management Official selected by the Board to receive an Award under the Plan.

 

"Plan"
means the Hanover Community Bank 2015 Restricted Stock Plan.

 

“State” means
the State of New York.

 

“Unforeseeable
Emergency” shall mean a severe financial hardship to the Participant resulting from an illness or accident of the Participant,
the Participant’s spouse, or a dependent (as defined in Code section 152(a)) of the Participant, loss of the Participant’s
property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the
control of the Participant.

 

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Section 3. Administration

 

(a)        The
Plan shall be administered by the Board. Among other things, the Board shall have authority, subject to the terms of the Plan,
to grant Awards, to determine the individuals to whom and the time or times at which Awards may be granted, to determine the terms
and conditions of any Award granted hereunder, including whether to impose any vesting period, subject to the requirements of this
Plan.

 

(b)       Subject
to the other provisions of the Plan, the Board shall have authority to adopt, amend, alter and repeal such administrative rules,
guidelines and practices governing the operation of the Plan as it shall from time to time consider advisable, to interpret the
provisions of the Plan and any Award and to decide all disputes arising in connection with the Plan. The Board may correct any
defect or supply any omission or reconcile any inconsistency in the Plan or in any grant agreement in the manner and to the extent
it shall deem appropriate to carry the Plan into effect, in its sole and absolute discretion. The Board's decision and interpretations
shall be final and binding. Any action of the Board with respect to the administration of the Plan shall be taken pursuant to a
majority vote or by the unanimous written consent of its members.

 

(c)       The
Board may employ such legal counsel, consultants and agents as it may deem desirable for the administration of the Plan and may
rely upon any opinion received from any such counsel or consultant and any computation received from any such consultant or agent.

 

Section 4. Eligibility and Participation

 

Management Officials
of the Bank shall be eligible to participate in the Plan. The Participants under the Plan shall be selected from time to time by
the Board, in its sole discretion, from among those eligible, and the Board shall determine in its sole discretion the numbers
of shares to be covered by the Award or Awards granted to each Participant.

 

Section 5. Shares of Stock Available
for Awards

 

The maximum number of
shares of Common Stock which may be issued under the Plan is 500,000 subject to the adjustments in the event of any stock dividend,
stock split or similar change to the outstanding Common Stock. If an Award granted under this Plan expires or terminates or is
forfeited for any reason, the shares of Common Stock subject to such Award, to the extent of such termination or forfeiture, shall
again be available for subsequent Award grant under the Plan.

 

Section 6. Awards

 

6.1 – Grant
of Awards

 

(a)       Grants.
The Board may grant Awards, subject to the right of the Bank to require forfeiture of such shares from the Participant in the event
that conditions specified by the Board in the applicable Award are not satisfied prior to the end of the applicable restriction
period or periods established by the Board for such Award. During the restricted period, shares constituting an Award may not be
transferred, although a Participant shall be entitled to exercise other indicia of ownership, including the right to vote such
shares and receive any dividends declared on such shares. 

 

(b)      Terms
and Conditions. Subject to Section 6.2, the Board shall determine the terms and conditions of any such Award, including the
conditions for forfeiture. 

 

(c)       Stock
Certificates. The Bank may cause shares issued as part of an Award to be issued in either book entry form or certificated form.
Shares issued in book entry form will be maintained in an account at the Bank’s transfer agent, and only released to a Participant
upon satisfaction of any required restrictions. Any stock certificates issued in respect of an Award shall be registered in the
name of the Participant and, unless otherwise determined by the Board, deposited by the Participant, together with a stock power
endorsed in blank, with the Bank (or its designee). At the expiration of the applicable restriction periods, the Bank (or such
designee) shall deliver the certificates no longer subject to such restrictions to the Participant or if the Participant has died,
to the beneficiary designated, in a manner determined by the Board, by a Participant to receive amounts due or exercise rights
of the Participant in the event of the Participant’s death (the “Designated Beneficiary”). In the absence of
an effective designation by a Participant, Designated Beneficiary shall mean the Participant’s estate.

 

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6.2     Distribution
of Awards

 

(a)       Awards shall not be distributed and the restrictions pertaining to such award shall not expire earlier than –

 

(1)    upon the completion or satisfaction of the conditions specified by the Board in the Award;

 

(2)    a Participant’s separation from service;

 

(3)    the date a Participant becomes Disabled;

 

(4)    upon the death of a Participant;

 

(5)    a change in the ownership or effective control of the Bank, or in the ownership of a substantial portion of the assets
of the Bank, as described in Section 7(c) or, if in conflict therewith, to the extent necessary, by the Secretary of Treasury under
regulations issued under Code section 409A; or

 

(6)    upon the occurrence of an unforeseeable emergency.

 

(b)       A payment of a Participant’s vested interest in an Award may, in the discretion of the Board, be made in the event
of a Participant’s Disability, upon the occurrence of a Change-in-Control (as defined in the Grant Agreement evidencing any
Award) or Unforeseeable Emergency (as defined above). Payments in settlement of a Participant’s vested interest in an Award
shall be made as soon as practicable after such occurrence or after the Participant otherwise vests in such award. For the purposes
of section 409A of the Code, the entitlement to a series of installment payments will be treated as the entitlement to a single
payment.

 

(c)       Other provisions of the Plan
notwithstanding, if, upon the written application of a Participant, the Board determines that the Participant has an Unforeseeable
Emergency, the Board may, in its sole discretion, direct the payment to the Participant of all or a portion of the balance of his
or her vested interest in an Award in a lump sum payment, provided that any such withdrawal shall be limited by the Board to the
amount reasonably necessary to meet the emergency, including amounts needed to pay any income taxes or penalties reasonably anticipated
to result from the payment. No payment may be made to the extent that such emergency is or may be relieved through reimbursement
or compensation from insurance or otherwise, by liquidation of the Participant’s assets or to the extent the liquidation
of such assets would not cause severe financial hardship.

 

(d)       The Board may not otherwise permit the acceleration of the time or schedule of any vesting of a Restricted Stock award
scheduled to be paid pursuant to the Plan, unless such acceleration of the time or schedule is (i) necessary to fulfill a domestic
relations order (as defined in section 414(p)(1)(B) of the Code) or to comply with a certificate of divestiture (as defined in
section 1043(b)(2) of the Code), (ii) de minimis in nature (as defined in regulations promulgated under section 409A of the Code),
(iii) to be used for the payment of FICA taxes on amounts deferred under the Plan, or (iv) equal to amounts included in the federal
personal taxable income of the Participant under section 409A of the Code.

 

Section 7. General Provisions Applicable
to Awards 

 

(a)       Each
Award under the Plan shall be evidenced by a writing delivered to the Participant specifying the terms and conditions thereof and
containing such other terms and conditions not inconsistent with the provisions of the Plan as the Board considers necessary or
advisable to achieve the purposes of the Plan or comply with applicable tax and regulatory laws and accounting principles.

 

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(b)       Each
Award may be granted alone, in addition to or in relation to any other Award. The terms of each Award need not be identical, and
the Board need not treat Participants uniformly. Except as otherwise provided by the Plan or a particular Award, any determination
with respect to an Award may be made by the Board at the time of grant or at any time thereafter.

 

(c)       For
purposes of the Plan, the following events shall not be deemed a termination of service of a Participant:

 

(i)       a
transfer to the employment of the Bank from a subsidiary or from the Bank to a subsidiary, or from one subsidiary to another, or

 

(ii)     an
approved leave of absence for military service or sickness, or for any other purpose approved by the Bank, if the Participant's
right to reemployment is guaranteed either by a statute or by contract or under the policy pursuant to which the leave of absence
was granted or if the Board otherwise so provides in writing.

 

(e)       The
Board may at any time, and from time to time, amend, modify or terminate the Plan or any outstanding Award held by a Participant,
including substituting therefore another Award of the same or a different type or changing the date of realization, provided that
the Participant's consent to each action shall be required unless the Board determines that the action, taking into account any
related action, would not materially and adversely affect the Participant, and further provided that no amendment increasing the
number of shares subject to the Plan may be effectuated without the approval of the shareholders of the Bank; provided, however,
that no such amendment or modification will be effective if such amendment or modification would cause the Plan to fail to comply
with the requirements of Rule 16b-3 under the Act or any successor or replacement regulation.

 

(f)       The
Board may, in its sole discretion, terminate the Plan (in whole or in part) with respect to one or more Participants and distribute
to such affected Participants their vested interest in any Award in a lump sum as soon as reasonably practicable following such
termination, but if, and only if, (i) all nonqualified defined contribution deferred compensation plans maintained by the Bank
and its Affiliates are terminated, (ii) no payments other than payments that would be payable under the terms of the Plan if the
termination had not occurred are made within twelve (12) months of the termination of the Plan, (iii) all payments of the vested
interest in Awards are made within twenty-four (24) months of the termination of the Plan, and (iv) the Bank acknowledges to the
Participants that it will not adopt any new nonqualified defined contribution deferred compensation plans at any time within five
(5) years following the date of the termination of the Plan.

 

Section 8. Miscellaneous

 

(a)       No
person shall have any claim or right to be granted an Award, and the grant of an Award shall not be construed as giving a Participant
the right to continued employment or service on the Bank's Board. The Bank expressly reserves the right at any time to dismiss
a Participant free from any liability or claim under the Plan, except as expressly provided in the applicable Award.

 

(b)       Nothing
contained in the Plan shall prevent the Bank from adopting other or additional compensation arrangements.

 

(c)       Notwithstanding
anything to the contrary expressed in this Plan, any provisions hereof that vary from or conflict with any applicable Federal or
State securities laws (including any regulations promulgated thereunder) shall be deemed to be modified to conform to and comply
with such laws.

 

(d)       No
member of the Board shall be liable for any action or determination taken or granted in good faith with respect to this Plan nor
shall any member of the Board be liable for any agreement issued pursuant to this Plan or any grants under it. Each member of the
Board shall be indemnified by the Bank against any losses incurred in such administration of the Plan, unless his action constitutes
serious and willful misconduct.

 

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(f)       This
Plan shall become effective upon its approval by the affirmative vote of a majority of the votes cast at the annual meeting. Prior
to such approval, Awards may be granted under the Plan expressly subject to such approval.

 

(g)       Awards
may not be granted under the Plan more than ten (10) years after approval of the Plan by the Bank's Shareholders, but then outstanding
Awards may extend beyond such date.

 

(h)       To
the extent that State laws shall not have been preempted by any laws of the United States, the Plan shall be construed, regulated,
interpreted and administered according to the other laws of the State of New York.

 

(i)       A
Participant in the Plan shall have no right to receive payment (in any form) with respect to his or her restricted Stock award
until legal and contractual obligations of the Bank relating to establishment of the Plan and the making of such payments shall
have been complied with in full. In addition, the Bank shall impose such restrictions on stock delivered to a Participant hereunder
and any other interest constituting a security as it may deem advisable in order to comply with the Securities Act of 1933, as
amended, the requirements of any stock exchange or automated quotation system upon which the stock is then listed or quoted, any
applicable state securities laws, any provision of the Bank’s certificate of incorporation or bylaws, or any other law, regulation,
or binding contract to which the Bank is a party.

 

    5Exhibit 10.6

 

HANOVER COMMUNITY BANK

 

2016 STOCK OPTION PLAN

 

Section 1. Purpose

 

The Hanover Community
Bank 2016 Stock Option Plan (the "Plan") is hereby established to foster and promote the long-term success of Hanover
Community Bank (the "Bank") and its shareholders by providing members of management, including employees and management
officials, with an equity interest in the Bank. The Plan will assist the Bank in attracting and retaining the highest quality of
experienced persons to serve as Directors and in aligning the interests of such persons more closely with the interests of the
Bank's shareholders by encouraging such parties to maintain an equity interest in the Bank.

 

Section 2. Definitions

 

Capitalized terms not
specifically defined elsewhere herein shall have the following meaning:

 

"Act" means
the Securities Exchange Act of 1934, as amended from time to time, and any rules and regulations promulgated thereunder.

 

"Bank" means
Hanover Community Bank and any present or future subsidiary or parent corporations of Hanover Community Bank (as defined in Section
424 of the Code) or any successor to such corporations.

 

"Board" means the Board of Directors
of the Bank.

 

"Code" means
the Internal Revenue Code of 1986, as amended from time to time, and the regulations promulgated thereunder.

 

"Committee" shall mean the committee
provided for under Section 3(a) hereof.

 

 

"Common Stock" or "Stock"
means the common stock, $0.01 per share par value, of the Bank.

 

"Disability"
shall mean, with respect to a Management Official who is an employee, a permanent disability which qualifies as total disability
under the terms of the Bank's Long-Term Disability Plans and, with respect to a Management Official who is a non-employee member
of the Board, permanent and total disability which if the Management Official were an employee of the Bank would be treated as
a total disability under the terms of the Bank's long-term disability plan for employees as in effect from time to time; provided,
however, with respect to a Participant who has been granted an Incentive Stock Option such term shall have the meaning set forth
in Section 422(c)(6) of the Code.

 

"Fair Market Value"
means, with respect to shares of Common Stock, (i) for so long as the Common Stock is traded on a national exchange or established
inter-dealer market, the fair market value shall be equal to the closing price, or if there is no such sales price, the average
of the last reported bid and asked prices, as reported by such inter-dealer market for the day prior to the date of grant, and
(ii) if the stock is not so listed or traded, the fair market value as determined by the Board in good faith and in a manner established
by the Board from time to time, taking into account such factors as the Board shall deem relevant, including the book value of
the Common Stock, the market value of the shares of comparable banks, and the trend of the Bank's earnings in accordance with Section
26.11 of the General Regulations of Superintendent.

 

     

     

    

 

"Incentive Stock
Option" means an option to purchase shares of Common Stock granted to a Participant under the Plan which is intended to meet
the requirements of Section 422 of the Code.

 

"Management Official"
means the Bank’s employees, officers and a non-employee member of the Board.

 

"Non-Qualified Stock
Option" means an option to purchase shares of Common Stock granted to a Participant under the Plan which is not intended to
be an Incentive Stock Option.

 

"Option" means an Incentive Stock
Option or a Non-Qualified Stock Option granted hereunder.

 

"Participant" means a Management
Official selected by the Board to receive an Option under the Plan.

 

"Plan" means the Hanover Community
Bank 2016 Stock Option Plan.

 

“Superintendent” means the Superintendent
of Financial Services of the State of New York.

 

"Termination for
Cause" means termination because of Participant's intentional failure to perform stated duties, personal dishonesty, willful
violation of any law, rule regulation (other than traffic violations or similar offenses) or final cease and desist order issued
by any regulatory agency having jurisdiction over the Participant or the Bank.

 

Section 3. Administration

 

(a)        The
Plan shall be administered as follows: the Bank’s Board of Directors shall appoint a committee made up entirely of non-employee
directors (the “Committee”). No then current member of the Committee shall be under consideration for a grant under
this Plan at the time the Committee acts on such a grant. Among other things, the Committee shall, subject to the terms of the
Plan, make recommendations to the Board of Directors with regard to granting Options, determining the individuals to whom and the
time or times at which Options may be granted, determining whether such Options are to be Incentive Options or Non-Qualified Stock
Options (subject to the requirements of the Code, which provide that only employees may receive Incentive Options), determining
the terms and conditions of any Option granted hereunder, including whether to impose any vesting period, and the exercise price
thereof, subject to the requirements of this Plan. All such Committee recommendations shall then be presented to the Board of Directors
for review and approval; provided, however, that the Board may not determine to make a grant of options unless recommended by the
Committee.

 

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(b)       Subject
to the other provisions of the Plan, to the Superintendent's approval and to final approval of the Board of Directors, the Committee
shall have authority to adopt, amend, alter and repeal such administrative rules, guidelines and practices governing the operation
of the Plan as it shall from time to time consider advisable to interpret the provisions of the Plan and any Option and to decide
all disputes arising in connection with the Plan. The Board may correct any defect or supply any omission or reconcile any inconsistency
in the Plan or in any option agreement in the manner and to the extent it shall deem appropriate to carry the Plan into effect,
in its sole and absolute discretion. The Board's decision and interpretations shall be final and binding. Notwithstanding the foregoing,
the approval of the holders of a majority of the Bank's outstanding capital stock shall be required for any amendment (other than
an adjustment made pursuant to Section 5(b) hereof) which would: (i) increase the number of shares as to which options may be granted;
(ii) change the number of shares which may be optioned to any single individual; (iii) decrease an option price; (iv) extend the
term of the plan or of an option; or (v) change the persons or category of persons eligible to be granted options.

 

(c)       The
Committee may employ such legal counsel, consultants and agents as it may deem desirable for the administration of the Plan and
may rely upon any opinion received from any such counsel or consultant and any computation received from any such consultant or
agent.

 

Section 4. Eligibility and Participation

 

Management Officials
of the Bank shall be eligible to participate in the Plan. The Participants under the Plan shall be selected from time to time from
among those eligible, and the Board, on the basis of the recommendation of the Committee shall determine in its sole discretion
the numbers of shares to be covered by the Option or Options granted to each Participant. Options intended to qualify as Incentive
Stock Options shall be granted only to persons who are eligible to receive such options under Section 422 of the Code; i.e., employees
of the Bank.

 

Section 5. Shares of Stock Available for Options

 

(a)       The
maximum number of shares of Common Stock which may be issued and purchased pursuant to Options granted under the Plan is 500,000
subject to the adjustments as provided in Section 5, to the extent applicable. If an Option granted under this Plan expires or
terminates before exercise or is forfeited for any reason, without a payment in the form of Common Stock being granted to the Participant,
the shares of Common Stock subject to such Option, to the extent of such expiration, termination or forfeiture, shall again be
available for subsequent Option grant under Plan.

 

(b)       In
the event that any stock dividend, stock split, reverse stock split or combination, or other similar transaction affects the Common
Stock such that an adjustment is required in order to preserve the benefits or potential benefits intended to be granted or made
available under the Plan to Participants, the Board shall, subject to the Superintendent’s approval, proportionately and
appropriately adjust equitably any or all of (i) the maximum number and kind of shares of Common Stock in respect of which Options
may be granted under the Plan to Participants, (ii) the number and kind of shares of Common Stock subject to outstanding Options
held by Participants, and (iii) the exercise price with respect to any Options held by Participants, without changing the aggregate
purchase price as to which such Options remain exercisable, and if considered appropriate, the Board, may make provision for a
cash payment with respect to any outstanding Options held by a Participant, provided that no adjustment shall be made pursuant
to this Section if such adjustment would cause the Plan to fail to comply with Section 422 of the Code with regard to any Incentive
Stock Options granted hereunder or fail to comply with the requirements of Rule 16b-3 under the Act or any successor or replacement
regulation. No fractional Shares shall be issued on account of any such adjustment.

 

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(c)       Any
adjustments under this Section will be made by the Committee whose determination as to what adjustments, will be made and the extent
thereof will be (subject only to the Superintendent’s approval) final, binding and conclusive.

 

Section 6. Non-Qualified Stock Options

 

6.1       Grant
of Non-Qualified Stock Options.

 

Subject to the provisions
hereof, the Board may, from time to time, grant Non-Qualified Stock Options to Participants upon such terms and conditions as the
Committee may determine, and may grant Non-Qualified Stock Options in exchange for and upon surrender of previously granted Options
under this Plan. Non-Qualified Stock Options granted under this Plan are subject to the following terms and conditions:

 

(a)       Price.
The purchase price per share of Common Stock deliverable upon the exercise of each Non-Qualified Stock Option shall be determined
by the Board on the date the option is granted. The purchase price shall not be less than one hundred percent (100%) of the Fair
Market Value of the Common Stock on the date of grant or the par value of the Common Stock, whichever is greater. Shares may be
purchased only upon full payment of the purchase price.

 

(b)       Terms
of Options. The term during which each Non-Qualified Stock Option may be exercised shall be determined by the Board, but in
no event shall a Non-Qualified Stock Option be exercisable in whole or in part more than ten (10) years from the date of grant.

 

(c)       Termination
of Service. Except as provided herein, unless otherwise determined by the Board, upon the termination of the service of a Participant
for any reason other than death or Termination for Cause, the Participant's Non-Qualified Stock Options shall be exercisable only
as to those shares which were immediately exercisable by the Participant at the date of termination and only for one (1) year from
the date of such termination. In the event of death of any such Participant, all Non-Qualified Stock Options held by such Participant,
whether or not exercisable at such time, shall be exercisable by the Participant or his legal representatives or beneficiaries
of the Participant for one year or such longer period as is determined by the Board following the date of the Participant's death,
provided and in no event shall the period extend beyond the expiration of the Non-Qualified Stock Option term. Notwithstanding
any other provisions set forth herein to the contrary nor any provision contained in any agreement relating to the award of an
option, in the event of a Termination for Cause, all of the Participant's Non-Qualified Stock Options shall immediately expire
upon such Termination for Cause and shall not be exercisable, regardless of whether such Non-Qualified Stock Options were vested.

 

(d)       
Transferability. Except as provided for hereunder, no Option granted under the Plan shall be assignable or transferable
by a Participant, and any attempted disposition thereof shall be null and void and of no effect. Non-qualified Options granted
hereunder may only be transferred by will or by the applicable laws of descent and distribution.

 

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Section 7. Incentive Stock Options

 

7.1       Grant
of Incentive Stock Options.

 

The Board may, from time
to time, grant Incentive Stock Options to Management Officials who are employees of the Bank. Incentive Stock Options granted pursuant
to the Plan shall be subject to the following terms and conditions:

 

(a)       Price.
The purchase price per share of Common Stock deliverable upon the exercise of each Incentive Stock Option shall be not less than
one hundred percent (100%) of the Fair Market Value of the Common Stock on the date of grant or the par value of the Common Stock,
whichever is higher. However, if a Participant owns stock possessing more than ten percent (10%) of the total combined voting power
of all classes of Common Stock, the purchase price per share of Common Stock deliverable upon the exercise of each Incentive Stock
Option shall not be less than one hundred ten percent (110%) of the Fair Market Value of the Common Stock on the date of grant
or the par value of the Common Stock, whichever is greater. Shares may be purchased only upon payment of the full purchase price.

 

(b)       Amounts
of Options. Incentive Stock Options may be granted to any Management Official who is an employee of the Bank in such amounts
as determined by the Board. In the case of an option intended to qualify as an Incentive Stock Option, the aggregate Fair Market
Value (determined as of the time the option first becomes exercisable) of the Common Stock with respect to which Incentive Stock
Options granted are exercisable for the first time by the Participant during any calendar year shall not exceed $100,000. The provisions
of this Section 7.1(b) shall be construed and applied in accordance with Section 422(d) of the Code and the regulations, if any,
promulgated thereunder. To the extent an award is in excess of such limit, it shall be deemed a Non-Qualified Stock Option. The
Board shall have discretion to redesignate options granted as Incentive Stock Options as Non-Qualified Options.

 

(c)       Terms
of Options. The term during which each Incentive Stock Option may be exercised shall be determined by the Board, but in no
event shall an Incentive Stock Option be exercisable in whole or in part more than ten (10) years from the date of grant. If at
the time an Incentive Stock Option is granted to an employee, the employee owns Common Stock representing more than ten percent
(10%) of the total combined voting power of the Bank (or, under Section 422(d) of the Code, is deemed to own Common Stock representing
more than ten percent (10%) of the total combined voting power of all such classes of Common Stock, by reason of the ownership
of such classes of Common Stock, directly or indirectly, by or for any brother, sister, spouse, ancestor or lineal descendent of
such employee, or by or for any corporation, partnership, estate or trust of which such employee is a shareholder, partner or beneficiary),
the Incentive Stock Option granted to such employee shall not be exercisable after the expiration of five years from the date of
grant.

 

(d)       Termination
of Service. Upon the termination of a Participant's service for any reason other than Disability, death or Termination for
Cause, the Participant's Incentive Stock Options which are then exercisable at the date of termination may only be exercised by
the Participant for a period of three months following termination. Notwithstanding any provisions set forth herein nor contained
in any Agreement relating to an award of an Option, in the event of Termination for Cause all rights under the Participant's Incentive
Stock Options shall expire immediately upon termination, and such Incentive Stock Options shall not be exercisable.

 

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Unless otherwise determined
by the Board, in the event of death or termination of service as a result of Disability of any Participant, all Incentive Stock
Options held by such Participant, whether or not exercisable at such time, shall be exercisable by the Participant or the Participant's
legal representatives or beneficiaries of the Participant for one year following the date of the participant's death or termination
of employment as a result of Disability. In no event shall the exercise period extend beyond the expiration of the Incentive Stock
Option term.

 

(e)       Transferability.
No Incentive Option granted under the Plan shall be assignable or transferable by a Participant, except by will or pursuant to
the laws of descent and distribution, and any attempted distribution shall be null and void and of no effect.

 

(f)       Compliance
with Code. The options granted under this Section 7 of the Plan are intended to qualify as incentive stock options within the
meaning of Section 422 of the Code, but the Bank makes no warranty as to the qualification of any option as an incentive stock
option within the meaning of Section 422 of the Code. A Participant shall notify the Board in writing in the event that he disposes
of Common Stock acquired upon exercise of an Incentive Stock Option within the two-year period following the date the Incentive
Stock Option was granted or within the one-year period following the date he received Common Stock upon the exercise of an Incentive
Stock Option and shall comply with any other requirements imposed by the Bank in order to enable the Bank to secure the related
income tax deduction to which it will be entitled in such event under the Code.

 

Section 8. General Provisions Applicable to Options 

 

(a)       Pursuant
to Section 26.12(h) of the General Regulations of the Superintendent, each Option under the Plan shall be evidenced by a writing
delivered to the Participant specifying the terms and conditions thereof and containing such other terms and conditions not inconsistent
with the provisions of the Plan as the Board considers necessary or advisable to achieve the purposes of the Plan or comply with
applicable tax and regulatory laws and accounting principles, and incorporating the terms of this Plan.

 

(b)       Each
Option may be granted alone, in addition to or in relation to any other Option. The terms of each Option need not be identical,
and the Board need not treat Participants uniformly. Except as otherwise provided by the Plan or a particular Option, any determination
with respect to an Option may be made by the Board at the time of grant or at any time thereafter. At the discretion of the Board
upon the request of a Participant, any Option granted hereunder may, to the extent exercisable, be settled by a cash payment equal
to the difference between the exercise price and the then current Fair Market Value of the Common Stock.

 

(c)       In
the event of a consolidation, reorganization, merger or sale of all or substantially all of the assets of the Bank, in each case
in which outstanding shares of Common Stock are exchanged for securities, cash or other property of any other corporation or business
entity or in the event of a liquidation of the Bank, the Board will provide for any one or more of the following actions, as to
outstanding options: (i) provide that such options shall be assumed, or equivalent options shall be substituted, by the acquiring
or succeeding corporation (or an affiliate thereof), provided that any such options substituted for Incentive Stock Options shall
meet the requirements of Section 424(a) of the Code, (ii) upon written notice to the Participants, provide that all unexercised
options will terminate immediately prior to the consummation of such transaction unless exercised (to the extent then exercisable)
by the Participant within a specified period following the date of such notice, (iii) make or provide for a cash payment to the
Participants equal to the difference between (A) the value of the consideration received by shareholders of the Bank for each share
surrendered in the merger (the "Merger Price") times the number of shares of Common Stock subject to such outstanding
Options (to the extent then exercisable at prices not in excess of the Merger Price) and (B) the aggregate exercise price of all
such outstanding Options, in exchange for the termination of such Options, and (iv) provide that all or any outstanding Options
shall become exercisable in full immediately prior to such event.

 

    -6-

     

    

 

(d)       The
Participant shall pay to the Bank, or make provision satisfactory to the Board for payment of, any taxes required by law to be
withheld in respect of Options under the Plan no later than the date of the event creating the tax liability. In the Board's sole
discretion, a Participant may elect to have such tax obligations paid, in whole or in part, in shares of Common Stock, including
shares retained from the Option creating the tax obligation. For withholding tax purposes, the value of the shares of Common Stock
shall be the Fair Market Value on the date the withholding obligation is incurred. The Bank may, to the extent permitted by law,
deduct any such tax obligations from any payment of any kind otherwise due to the Participant.

 

(e)       For
purposes of the Plan, the following events shall not be deemed a termination of service of a Participant:

 

(i)          a
transfer to the employment of the Bank from a subsidiary or from the Bank to a subsidiary, or from one subsidiary to another, or

 

(ii)          an
approved leave of absence for military service or sickness, or for any other purpose approved by the Bank, if the Participant's
right to reemployment is guaranteed either by a statute or by contract or under the policy pursuant to which the leave of absence
was granted or if the Board otherwise so provides in writing.

 

(f)       The
Board may at any time, and from time to time, amend, modify or terminate the Plan, subject to obtaining any necessary approval
of the Superintendent, or any outstanding Option held by a Participant, including substituting therefore another Option of the
same or a different type or changing the date of exercise or realization, provided that the Participant's consent to each action
shall be required unless the Board determines that the action, taking into account any related action, would not materially and
adversely affect the Participant, and further provided that no amendment that would (i) increase the number of shares as to which
options may be granted; (ii) change the number of shares which may be optioned to any single individual; (iii) decrease an option
price; (iv) extend the term of the plan or of an option; or (v) change the persons or category of persons eligible to be granted
options may be adopted without the approval of the Bank’s shareholders and the Superintendent; provided, further however,
that no such amendment or modification will be effective if such amendment or modification would cause the Plan to fail to comply
with the requirements of Rule 16b-3 under the Act or any successor or replacement regulation.

 

Section 9. Miscellaneous

 

(a)       No
person shall have any claim or right to be granted an Option, and the grant of an Option shall not be construed as giving a Participant
the right to continued employment or service on the Bank's Board. The Bank expressly reserves the right at any time to dismiss
a Participant free from any liability or claim under the Plan, except as expressly provided in the applicable Option.

 

    -7-

     

    

 

(b)       Nothing
contained in the Plan shall prevent the Bank from adopting other or additional compensation arrangements.

 

(c)       Subject
to the provisions of the applicable Option, no Participant shall have any rights as a shareholder (including, without limitation,
any rights to receive dividends, or non-cash distributions with respect to such shares) with respect to any shares of Common Stock
to be distributed under the Plan until he or she becomes the holder thereof.

 

(d)       Notwithstanding
anything to the contrary expressed in this Plan, any provisions hereof that vary from or conflict with any applicable Federal or
State securities laws (including any regulations promulgated thereunder) shall be deemed to be modified to conform to and comply
with such laws.

 

(e)       No
member of the Board shall be liable for any action or determination taken or granted in good faith with respect to this Plan nor
shall any member of the Board be liable for any agreement issued pursuant to this Plan or any grants under it. Each member of the
Board shall be indemnified by the Bank against any losses incurred in such administration of the Plan, unless his action constitutes
serious and willful misconduct.

 

(f)       This
Plan shall become effective upon the final approval from the Superintendent in accordance with Section 26.4 of the General Regulation
of the Superintendent.

 

(g)       The
Plan shall be in effect for a period of ten (10) years after approval of the Plan by the Bank's Shareholders, but then outstanding
Options may extend beyond such date.

 

(h)       To
the extent that State laws shall not have been preempted by any laws of the United States, the Plan shall be construed, regulated,
interpreted and administered according to the other laws of the State of New York.

 

(i)       The
Plan is subject to the provisions of the New York Banking Law, section 140-a, the regulations of the Superintendent and any other
applicable law or regulation.

 

    -8-

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