Document:

Exhibit 4.27

 

Execution Copy

 

[Note: Translation from the original agreement
written in Chinese]

 

Seventh Amended and Restated Exclusive
Purchase Right Agreement 

 

Party A: eLong, Inc.

Registered Address: 4th Floor, Hutchence
David Century Garden, George Town, Grand Cayman, Cayman Islands.

 

Party B (collectively): Guangfu Cui

ID No.:

Address: No.1, Xiang Hongqi Street,
Haidian District, Beijing

 

Ding Haochuan

Address: No. 19 Dongjing Road, Xuanwu
District, Beijing

ID No.:

 

Party C: Beijing eLong Information Technology
Co., Ltd. 

Registered Address: 2nd
Floor, Xingke Plaza-C, 10 Jiuxianqiao Street, Chaoyang District, Beijing

Legal Representative: Guangfu Cui

 

Party D: eLongNet Information Technology
(Beijing) Co., Ltd. 

Registered Address: 10 Jiuxianqiao
Road, Chaoyang District, Beijing

Legal Representative: Guangfu Cui

 

Each party hereto shall be referred to as
a “Party”, and collectively as the “Parties”.

 

WHEREAS: 

 

		1.	Party A is a company registered and established in Cayman Islands; Party B is two citizens of the
PRC; Party C is a limited liability company established and validly existing in accordance with PRC laws; Party D is a wholly foreign-owned
enterprise established and validly existing in accordance with PRC laws, and is wholly owned by Party A.

 

		2.	Party A, Guangfu Cui, Party C, party D and Xie Zhen, the former shareholder who then held 12.5% of
Party C, previously entered into a Sixth Amended and Restated Exclusive Purchase Right Agreement on December 26, 2012, pursuant
to which Guangfu Cui and Xie Zhen granted Party A an exclusive, irrevocable right to purchase their respective interests in Party
C.

 

		3.	Pursuant to the Share and Debt Transfer Agreement entered into by Party A, Party B, Party C and Xie
Zhen on November 10, 2014, the 12.5% interest in Beijing eLong formerly held by Xie Zhen, and all rights and obligations pertaining
thereto, have been transferred to Ding Haochuan. 

 

		4.	In order to reflect the transfer of equity interest in Beijing eLong, and all corresponding
                                                         rights and obligations, from Xie Zhen to Ding Haochuan, Party A, Party   B, Party C and Party D now enter into this
                                                         agreement                                                          to
                                                         amend                                                                                                                   and
                                                         restate the terms of the Sixth Amended and Restated                                                          Exclusive
                                                         Purchase Right Agreement dated December 26, 2012.

 

    	 

    	 

    

 

NOW, THEREFORE, the parties to this agreement
hereby agree as follows:

 

Chapter One. Purchase and Sale of Equity
Interest 

 

1.1 Authorization

Party B hereby irrevocably grants Party A,
under the laws of the PRC, the right to, following the steps decided by Party A, and the price specified in 1.3 of this agreement,
purchase by Party A or by one or more persons designated by Party A (“Designated Persons”) at any time from Party B
all or part of Party B’s equity interest in Party C (“Equity Interest Purchase Right”) and, at the time of exercise
of the Equity Interest Purchase Right, shall unconditionally provide all necessary cooperation to complete such exercise. Besides
Party A and the Designated Persons, no third party has any Equity Interest Purchase Right. Party C hereby agrees to the grant by
Party B of the Equity Interest Purchase Right to Party A. As specified in this agreement, “person” has the meaning
of a natural person, corporation, joint venture, partnership, enterprise, trust or non-corporate organization.

 

1.2 Exercise Procedure

 Upon and subject
to the laws and regulations of PRC, Party A may send a written notice (the “Notice of Purchase of Equity Interest”)
to Party B (or either person of Party B) for performance of the purchase right to explain in detail the number of shares purchased
and the purchase method.

 

1.3 Purchase Price

 Unless a valuation
is required by PRC law on the date of exercise, the price of the Purchased Equity Interest (“Purchase Price”) shall
be equivalent to the actual amount of paid-in capital paid by Party B for the Purchased Equity Interest.

 

1.4 Exercise of Purchase Right (and Transfer
of Purchased Equity)

 Each time Party
A exercises the Equity Interest Purchase Right:

 (a) Party B shall
supervise and cause Party C to convene a shareholders’ meeting, and during such meeting, to pass the decision or resolution
to transfer the equity interest from Party B to Party A and/or the Designated Persons;

 

(b) Party B shall, upon the terms and conditions
of this agreement and the Notice of Purchase of Equity Interest, enter into an equity interest transfer agreement with Party A
(or, as applicable, the Designated Person); and

 

(c) Party B and Party C shall execute all
other necessary contracts, agreements or documents, acquire all requisite approvals and consents of the government, and, without
any security interest, perform all requisite actions to transfer the valid ownership of the Purchased Equity Interest to Party
A and/or the Designated Person, and to cause Party A and/or the Designated Person to become the registered owner of the Purchased
Equity Interest. For this agreement, “Security Interest” has the meaning of security, mortgage, right or interest of
the third party, any purchase right of equity interest, right of acquisition, prior purchase right, right of set-off, ownership
detainment or other security arrangements. To further clarify, security interest does not include any security interest under this
agreement or the equity interest pledge agreement of Party B. As described in this agreement, “the Equity Interest Pledge
Agreement of Party B” has the meaning of the Equity Interest Pledge Agreement entered into by Party D and Party B dated as
of the execution date of this agreement, according to which in order to secure Party C’s performance of the obligations under
the Exclusive Technology Service Agreement and other agreements (see details in the Equity Pledge Agreement), Party B pledges all
its equity interest in Party C to Party D.

 

1.5 Payment

 As contemplated
in the Loan Agreement, any proceeds received by Party B from the transfer of its equity interest in Party C shall be used, according
to the Loan Agreement, as payment for the loan and to terminate the loan agreement. Therefore, except as required by applicable
law, upon the performance of the Equity Interest Purchase Right by Party A, the Purchase Price shall be used as the payment for
the principal as well as interest from Party B to Party A. Party A is not required to pay the Purchase Price to Party B.

 

Chapter Two. Covenants Relating to Equity
Interest 

 2.1 Covenants
of Party C

(a) Without prior written consent by Party
A, not to amend, change or alter the articles of the association of Party C in any form, to increase or decrease registered capital
of the corporation, or to change the structure of the registered capital by any other means;

 

    	 

    	 

    

 

(b) Apply good finance and business practices
in order to maintain the existence of the company, prudently and effectively operate the business and manage its affairs;

 

(c) Beginning on the date of this Agreement,
without prior written consent by Party A, not to sell, transfer, mortgage or dispose in any other form any assets, interests of
business or income of Party C, or to approve any other security interest relating thereto;

 

(d) Beginning on the date of this Agreement,
without prior written consent from Party A, no debt shall be incurred, inherited, guaranteed, or allowed to exist, with the exception
of: (i) debt from normal or daily business but not from borrowing; and (ii) debt having been disclosed to Party A or for which
Party A has provided written consent;

 

(e) To operate the business normally in order
to maintain the asset value of Party C, without taking any action or inaction that may adversely affect the operation and asset
value;

 

(f) Without prior written consent by Party
A, not to enter into any material contract, with the exception of contracts entered into in the ordinary course (for this paragraph,
a contract with a value more than RMB100,000 shall be deemed a material contract);

 

(g) Without prior written consent by Party
A, not to provide loan or credit to anyone;

 

(h) Upon the request of Party A, to provide
all operation and finance information of Party C to Party A;

 

(i) Without prior written consent by Party
A, not to merge or affiliate with any person, or purchase any person or invest in any person;

 

(j) To notify Party A immediately upon the
occurrence or the probable occurrence of litigation, arbitration or administrative procedures related to the assets, business and
income of Party C;

 

(k) In order to maintain the ownership by
Party C of all its assets, to execute all requisite or appropriate documents, do all requisite or appropriate actions, and advance
all requisite or appropriate accusations, or make requisite or appropriate defenses to all claims;

 

(l) Without prior written notice by Party
A, not to assign stock interests to shareholders in any form, but upon the request of Party A, to assign all its assignable profits
to their own shareholders;

 

2.2 Covenants of Party B

(a) Beginning from the date of entry into
this agreement, without prior written consent from Party A, not to sell, transfer, mortgage or dispose in any other form any legitimate
or beneficial interest of equity interest in Party C held by Party B, or to approve any security interest related thereto, except
the equity interest pledge of Party B set forth in the Equity Interest Pledge Agreement of Party B;

 

(b) Without prior written consent from Party
A, not to cause the shareholders meeting of Party C to approve or execute any shareholders’ resolution (i) to amend the articles
of association, increase or decrease the registered capital or in any other way alter the capital structure of Party C, or (ii)
to sell, transfer, mortgage or dispose in any other form any beneficial interest of equity interest, or to approve any other security
interest relating thereto, except such actions requested by Party A or a Designated Person;

 

(c) Without the prior consent of Party A,
to cause the shareholders’ meeting not to approve or execute any shareholders’ resolution of Party C to merge or affiliate
with any person, or purchase any person or invest in any person;

 

(d) To notify Party A of the occurrence or
the probable occurrence of any litigation, arbitration or administrative procedure related to the equity interest;

 

(e) To cause the shareholders’ meeting
to vote to approve the transfer of the Purchased Equity Interest in accordance with this agreement;

 

    	 

    	 

    

 

(f) In order to keep its ownership of the
equity interest, to execute all requisite or appropriate documents, take all requisite or appropriate actions, and advance all
requisite or appropriate accusations or appropriate defenses to claims;

 

(g) Upon request of Party A, to appoint any
person designated by Party D to be a member of the board of directors of Party C;

 

(h) Upon the request of Party A at any time,
to unconditionally and immediately transfer Party B’s equity interest to Party A or the representatives designated by Party
A at any time, and abandon the right of first purchase with respect to such transfer of equity interest to another shareholder;

 

(i) To strictly comply with the terms and
conditions of this agreement and other agreements entered into jointly or separately by Party B, Party C and Party A, to fully
perform all obligations under these agreements, without taking any action or inaction that may affect the validity and enforceability
of these agreements.

 

2.3 Covenants
of Party D

 Considering Party
B has pledged the equity interests of Party C, which are held by Party B, to Party D, Party D agrees that in case Party A exercises
the right of Equity Interest Purchase Right during the term of the Equity Interest Pledge Agreement, Party B shall transfer the
equity interests to Party A (or other appointed person) in accordance with the agreement, the aforesaid transfer shall not be bound
by the restrictions on transfer of Party B’s equity interest set forth in the Equity Interest Pledge Agreement.

 

3. Representations and Warranties

 

Representations and Warranties of Party
B and Party C 

 As of the execution
date of this agreement, and every subsequent transfer date, Party B and Party C hereby represent and warrant to Party A as follows:

 

(a) Party B and Party C each have the power
and ability to enter into and deliver this agreement, and any equity interest transfer agreement (“Transfer Agreement”),
for every single transfer of the purchased equity interest according to this Agreement, and to perform its obligations under this
agreement and any Transfer Agreement. Upon execution, this agreement and the Transfer Agreements having it as a party shall constitute
legal, valid and binding obligations enforceable against Party B and Party C in accordance with its terms;

 

(b) The execution, delivery of this agreement
and any Transfer Agreements and performance of the obligations under this agreement and any Transfer Agreements do not: (i) violate
PRC law; (ii) conflict with Party B or Party C’s articles of association or other organizational documents; (iii) cause the
breach, or constitute breach, of any contract or instruments to which Party B or Party C is a party or has a binding obligation;
(iv) cause Party B or Party C to violate any relevant authorization, consent or approval and/or valid condition; or (v) cause any
consent or approval of Party B or Party C to be suspended, removed, or made subject to conditions.

 

(c) Party C holds clean and saleable ownership
of all assets. Party C has not placed any security interest on the said assets;

 

(d) Party C does not have any undischarged
debt, with the exception of (i) debt from its normal business; and (ii) debt which was previously disclosed to Party A or for which
Party A has provided written consent;

 

(e) Party C abides by all PRC law and regulations
applicable to the purchase, transfer and disposal of assets;

 

(f) No litigation, arbitration or administrative
procedure relating to equity interest, assets of Party C or Party B’s shareholding of Party C is underway, pending or probable;
and

 

(g) Party B holds clean and saleable ownership
of its equity interest, and has not placed any security interest on such assets, other than as set forth in the Equity Interest
Pledge Agreement.

 

    	 

    	 

    

 

4. Effective Date, Term and Termination

 This agreement shall
come into effect from the date of execution date by the Parties, and shall have a term of 20 years, with automatic renewal at the
end of such term, and with no limit on such renewals. Party A may unilaterally terminate this agreement at any time. Party B, Party
C, and Party D do not have an early termination right.

 

5. Applicable Law and Dispute Resolution

 5.1 Applicable
Law

 The execution, validity,
construing and performance of this agreement, and resolution of the disputes under this agreement, shall be in accordance with
officially published and publicly attainable laws of PRC (“PRC laws”). Issues not regulated by the PRC laws shall apply
international legal rules and conventions.

 

5.2 Dispute Resolution

 (a) Any
dispute, controversy or claim arising from the agreement or relating with the agreement (including any issue relating with the
existence, validity or termination of the agreement) should be submitted to China International Economic and Trade Arbitration
Commission (the “Arbitration Commission”). Arbitration Commission shall conduct arbitration in accordance with the
rules of arbitration in effect on the date of application. The arbitration award shall be final and binding upon all parties.

 (b) Arbitration
place shall be Beijing, PRC.

 (c) Arbitration
language shall be Chinese.

(d) The arbitral panel shall be composed
of three arbitrators. Each party should respectively appoint an arbitrator, the chairman of the arbitral panel shall be appointed
by both parties through consultation. In case both parties do not agree on the person selected for the chief arbitrator within
twenty days from the date of their respective arbitral appointments, the director of the Arbitration Commission shall have the
right to appoint the chief arbitrator. The chief arbitrator shall not be a Chinese citizen or United States citizen.

(e) Both parties agree that the court
of arbitration established according to the regulation shall have the right to provide specific performance in accordance with
PRC law (including but not being limited to Law of Contract of the People’s Republic of China). For the avoidance of doubt,
both parties confirm that any court having jurisdiction (including PRC courts) may carry out specific performance of the arbitral
award.

(f) Both parties agree to conduct
arbitration in accordance with this Section, and irrevocably waive the right to appeal, reexamine or prosecute to national court
or other judicial body in any form, subject to the effectiveness of this waiver. However the waiver of both parties does not include
any post-arbitration injunction, post-arbitration distress warrant or other command issued by any court having jurisdiction (including
PRC Court) for terminating the arbitration procedure or carrying out any arbitral award.

 

6. Taxes
and Expenses

 Each Party shall,
according to PRC law, bear any and all transfer and registration taxes, costs and expenses for the preparation and execution of
this Agreement and all Transfer Agreements, and those arising from or imposed on the Party, to complete the transactions of this
Agreement and all Transfer Agreements.

 

7. Notices

 This agreement requires
that notices or other communications sent by any party or corporation shall be written in Chinese or English, and be delivered
in person, by mail or telecopy to other parties at the following addresses or other specified addresses noticed by other parties
to the party. The date deemed to be duly given or made shall be confirmed as follows: (a) for notices delivered in person, the
date of delivery shall be deemed as having been duly given or made; (b) for notices delivered by mail, the tenth day of the delivery
date of air certified mail with postage prepaid (as shown on stamp) or the fourth day of the delivery date to an internationally
certified delivery institution shall be deemed as having been duly given or made; and (c) for notices by telecopy, the receipt
date showed on the delivery confirming paper of the relevant document shall be deemed as having been duly given or made.

 

Party A: eLong, Inc.

Address: Third Floor, Tower C, Xingke
Plaza, 10 Jiuxianqiao Road, Chaoyang District, Beijing

Fax: 8610-64366019

Tel: 8610-58602288

Addressee: Sami Farhad

 

    	 

    	 

    

 

Party B: Guangfu Cui

Address: No.1, XiangHongqi Street,
Haidian District, Beijing

Fax: 8610-64366019

Tel: 8610-58602288

Ding Haochuan

Address: No. 19 Dongjing Road, Xuanwu
District, Beijing

Fax: 8610-64366019

Tel: 8610-58602288

 

Party C: Beijing eLong Information
Technology Co., Ltd.

Registered Address: 2nd
Floor, Xingke Plaza-C, 10 Jiuxianqiao Street, Chaoyang District Beijing

Fax: 8610-64366019

Tel: 8610-5860228

Addressee: Guangfu Cui

 

Party D: eLongNet Information Technology
(Beijing) Co., Ltd.

Address: 10 Jiuxianqiao Road, Chaoyang
District, Beijing

Fax: 8610-64366019

Tel: 8610-5860228

Addressee: Guangfu Cui

 

8. Confidentiality

 All parties admit
and confirm any oral or written materials exchanged by the parties relating to this agreement are confidential. All parties shall
maintain the secrecy and confidentiality of all such materials. Without written approval by the disclosing party, the party receiving
the confidential information shall not disclose to any third party any relevant materials, but with the exception of the following:
(a) the public know or may know such materials (but not disclosed by the party accepting the materials); (b) materials needed to
be disclosed subject to ordinance or listing rules or precedents of stock exchange; or (c) any party necessarily discloses materials
to its legal or financial consultant relating the transaction of this agreement, and this legal or financial consultant shall have
the obligation of confidentiality similar to that set forth in this. The breach of the obligation of confidentiality by staff or
employed institution of any party shall be deemed as the breach of such obligation by that party, and by whom the liabilities for
breach shall be bored. This obligation shall continue in force and effect after termination of the agreement.

 

9. Further
Assurances

The Parties to the agreement agree to promptly
execute documents reasonably necessary to the performance of the provisions and the aim of this agreement or beneficial thereto,
and to take actions reasonably necessary for the performance of the provisions and the aim of this agreement or actions beneficial
thereto.

 

10. Other

 10.1 Amendment,
Modification and Supplement

 Amendment, modification
and supplement of this agreement shall be subject to the written agreement executed by each party. Party A may unilaterally amend
this agreement; Party B and Party C shall promptly and unconditionally cooperate to sign any additional amendment or supplements
requested by Party A.

 

10.2 Observance
of Laws and Regulations

 The parties of the
contract shall observe in operation of business all PRC laws and regulations.

 

10.3 Entire
Contract

 Except the written
amendment, supplement and modification of this agreement upon the date of execution, this agreement shall constitute the entire
contract of the parties hereto with respect to the object hereof and supersedes all prior oral or written agreements, representation
and contracts with respect to the object hereof.

 

    	 

    	 

    

 

10.4 This Agreement amends and restates the
Sixth Amended and Restated Exclusive Purchase Agreement, dated December 26, 2012. In the event of any conflict between the terms
of this Agreement and the prior agreement, the terms of this Agreement shall prevail.

 

10.5 Headings

 The headings contained
in this agreement are for convenience of reading only and shall not affect the interpretation, explanation or in any other way
the meaning of the provisions of this agreement.

 

10.6 Language

 This agreement is
executed in Chinese in quadruplicate.

 

10.7 Severability

 If any one or more
provisions of this agreement are judged as invalid, illegal or non-enforceable according to any laws or regulations, the validity,
legality and enforceability of other provisions hereof shall not be affected or impaired. The Parties shall, through sincere consultation,
seek to replace those invalid, illegal or non-enforceable provisions with valid ones, and from such valid provisions, similar economic
effects shall be tried to reach as from those invalid, illegal or non-enforceable provisions.

 

10.8 Successors

 This Agreement shall
be binding on, and benefit, the successor and permitted assigns of each Party.

 

10.9 Survival

 (a) Any obligation
taking place or at term hereof prior to the end or termination ahead of the end of this agreement shall continue in force and effect
notwithstanding the occurrence of the end or termination ahead of the end of the agreement.

 

(b) Item 5, Item 7, Item 8 and Item 10.9 hereof
shall continue in force and effect after the termination of this agreement.

 

10.10 Waiver

 Any party to this
agreement may waive the terms and conditions of this agreement. Such waiver shall be valid only if set forth in an instrument in
writing signed by the party or parties to be bound thereby. Any waiver by a party to the breach hereof by other parties in a certain
situation shall not be construed as a waiver to any similar breach by other parties in any other situation.

 

[No text hereunder]

  

    	 

    	 

    

 

[signature page of Amended and Restated
Exclusive Purchase Right Agreement]

 

	Party A:	eLong, Inc. 	 

 

	Signature of Authorized Representative:	/s/ Sami Farhad 	 

 

	Party B: Guangfu Cui	 
	Signature:	/s/ Guangfu Cui 	 
	 	Ding Haochuan	 
	Signature:	/s/ Ding Haochuan 	 

 

Party C: Beijing eLong Information
Technology Co., Ltd.

Signature of Authorized Representative:
/s/ [seal of Beijing eLong Information Technology Co., Ltd.]

	Signature:	/s/ Guangfu Cui 	 

 

Party D: eLongNet Information Technology
(Beijing) Co., Ltd.

Signature of Authorized Representative:
/s/ Mike Doyle

Official Seal: /s/ [seal of eLongNet
Information Technology (Beijing) Co., Ltd.]

	Signature:	/s/ Guangfu CuiExhibit 10.5 

 

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (this “Agreement”), is entered into this 30th day of April, 2010 (“Effective Date”) by and between The Home Savings and Loan Company of Youngstown, Ohio, a state chartered savings bank incorporated under Ohio law (the “Company”) and Matthew T. Garrity, an individual (hereinafter referred to as the “Executive”).

WITNESSETH:

WHEREAS, the Executive is currently employed as the Senior Vice President and Chief Credit Officer of the Company;

WHEREAS, the Board of Directors of the Company desires to continue to retain the services of the Executive in those capacities and the Executive desires to continue to so serve; and

WHEREAS, the Executive and the Company desire to enter into this Agreement to set forth the terms and conditions of the employment relationship between the Company and the Executive.

NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained, the Company and the Executive, each party intending to be legally bound, hereby agree as follows:

	
1.
	
Employment and Term.

(a)Term.  Upon the terms and subject to the conditions of this Agreement, the Company hereby employs the Executive for a term beginning on Apri1 ___ , 2010 and continuing for a period of 12 months (together with any renewal period described in Section 1(b), the “Term”).

(b)Renewal.  The Term of this Agreement shall be extended for one day each day so that the Term is always 12 months.  The Term shall continue until the Company’s Board of Directors or the Executive provides written notice of non-renewal to the other, in which case renewals will cease and the Term will become fixed, ending 12 months after the date of receipt of any such written notice.

2.Duties of the Executive.

(a)General Duties and Responsibilities.  The Executive shall serve as the Senior Vice President and Chief Credit Officer of the Company.  In such capacity(ies), the Executive shall have the authority commensurate with such position and such duties as shall be determined from time to time by the Board of Directors and Chief Executive Officer of the Company.  The Executive shall report directly to the CEO.  The Executive will further perform such other duties and hold such other positions related to the business of the Company and its Affiliates as may from time to time be reasonably requested of the Executive by the CEO.  For purposes of this Agreement, an “Affiliate” shall mean any corporation (including any non-profit corporation), general or limited partnership, limited liability company, joint venture, trust, association or organization which, directly or indirectly, controls, is controlled by, or is under common control with, the Company.

(b)Devotion of Entire Time to the Business of the Company.  The Executive shall devote the Executive’s entire productive time, ability and attention during normal business hours throughout the Term to the faithful performance of the Executive’s duties under this Agreement.  The Executive shall not directly or indirectly render any services of a business, commercial or professional nature to any person or organization other than the Company or its Affiliates without the prior written consent of the Board of Directors of the Company; provided, however, that the Executive shall not be precluded from taking such vacation or sick leave as is applicable to the Executive, pursuing personal investments that do not interfere or conflict with the performance of the Executive’s duties to the Company, reasonable participation in community, civic, charitable or similar organizations, or in industry-related activities, including, but not limited to, attending state and national trade association meetings and serving as an officer, director, trustee or committee member of a state or national trade association or Federal Home Loan Bank, or such other regulatory governing body.

(c)Standards.  During the Term, the Executive shall perform the Executive’s duties in accordance with such reasonable standards expected of executives with comparable positions in comparable organizations and as may be established from time to time by the CEO.

3.Compensation and Review.

(a)Base Salary.  During the Term, the Executive will receive an annual base salary of $165,000.  In the event that the Company increases the Executive’s annual base salary, the amount of the initial annual base salary, together with any increase(s) will be the Executive’s base salary (the “Base Salary”).  The Base Salary will be payable in accordance with the Company’s regular payroll payment practices, but not less frequently than monthly.

 

 

(b)Annual Review.  On or about December 31 of each year, the compensation of the Executive shall be reviewed in accordance with the Company’s charter documents and applicable laws, rules or regulations, including those of any listing agency applicable to the Company or UCFC (as defined below), by either of (i) the Board of Directors or Compensation Committee or (ii) the CEO and, based upon the Executive’s individual performance and such other factors as the Board of Directors, Compensation Committee or CEO (as applicable) of the Company may deem appropriate, the Board of Directors, Compensation Committee or CEO of the Company may, in its sole discretion, increase the Executive’s Base Salary.

(c)Bonus.  Executive shall be eligible to participate during the Term in the Executive Incentive Plan and in any other executive incentive bonus plan that the Company may adopt and implement from time to time.  Nothing contained in this Section shall obligate the Company to institute, maintain or refrain from changing, amending or discontinuing any incentive bonus plan, so long as such changes are similarly applicable to other employees under such plan.

(d)Fringe Benefits.  During the Term, the Company will provide the Executive with all health and life insurance coverages, disability programs, tax-qualified retirement plans, equity compensation programs, and similar fringe benefit plans, paid holidays, paid vacation, perquisites, and such other fringe benefits of employment as the Company may provide from time to time to actively employed similar situated employees of the Company.  Notwithstanding any provision contained in this Agreement, the Company may discontinue or terminate at any time any employee benefit plan, policy or program described in this Section 3(d), now existing or hereafter adopted, to the extent permitted by the terms of such plan, policy or program and will not be required to compensate the Executive for such discontinuance or termination.

(e)Expenses.  The Company shall reimburse the Executive for reasonable travel, industry, entertainment and miscellaneous expenses incurred in connection with the performance of Executive’s duties under this Agreement, including participation in industry-related activities, in accordance with the existing policies and procedures of the Company pertaining to reimbursement of such expenses to executives.

4.Termination of Employment.  For purposes of this Agreement, any reference to the Executive’s “termination of employment” (or any form thereof) shall mean the Executive’s “separation from service” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and Treasury Regulation §l.409A-1(h).

(a)Death of Executive.  The Term and the Executive’s employment will terminate upon the Executive’s death and the Executive’s beneficiary (as designated by the Executive in writing with the Company prior to the Executive’s death) will be entitled to the following payments and benefits:

	
(i)
	
any Base Salary that is accrued but unpaid and any business expenses that are unreimbursed – all, as of the date of termination of employment;

	
(ii)
	
any rights and benefits (if any) provided under plans and programs of the Company, determined in accordance with the applicable terms and provisions of such plans and programs (the payments described in Sections 4(a)(i) and (ii) are hereinafter collectively referred to as the “Accrued Obligations”); and

	
(iii)
	
the Executive’s monthly base salary for 90 days following the day death occurred.

In the absence of a beneficiary designation by the Executive, or, if the Executive’s designated beneficiary does not survive the Executive, payments and benefits described in this Section 4(a) will be paid to the Executive’s estate.  Any payments due under Section 4(a)(i) shall be made within 30 days after the date of the Executive’s death.

(b)Disability.  The Term and the Executive’s employment may be terminated by the Company upon written notice from the Company following the determination, as set forth immediately below, that the Executive suffers from a Permanent Disability.  For purposes of this Agreement, “Permanent Disability” means a physical or mental impairment that renders the Executive incapable of performing the essential functions of the Executive’s job, on a full-time basis, even taking into account reasonable accommodation required by law, as determined by a physician who is selected by the agreement of the Executive and the Company, for a period of greater than 150 days.  During any period that the Executive fails to perform the Executive’s duties hereunder as a result of a Permanent Disability (“Disability Period”), the Executive will continue to receive the Executive’s Base Salary at the rate then in effect for such period until the Executive’s employment is terminated pursuant to this Section 4(b); provided, however, that payments of Base Salary so made to the Executive will be reduced by the sum of the amounts, if any, that were payable to the Executive at or before the time of any such salary payment under any disability benefit plan or plans of the Company and that were not previously applied to reduce any payment of Base Salary.  In the event that the Company elects to terminate the Executive’s employment due to Disability, the Executive will be entitled to payment of the Accrued Obligations.  In addition to the foregoing, provided that the Executive elects COBRA coverage, the Company shall pay the Executive’s COBRA premium payments consistent with the group health, dental and vision coverage in existence on the date of termination beginning on the date of termination and continuing until the earlier of:  (A) the 12th consecutive month following the Executive’s termination or (B) the Executive becoming eligible as a full-time employee to participate in the group health plan of any other employer.

2

 

(c)For Cause Termination.  The Company may terminate the Term and the Executive’s employment upon notice at any time for “Cause.”

	
(i)
	
For purposes of this Agreement, “Cause” means (A) the Executive’s continued intentional failure or refusal to perform substantially the Executive’s assigned duties (other than as a result of total or partial incapacity due to physical or mental illness) for a period of ten days following written notice by the Company to the Executive of such failure; (B) the Executive’s engagement in willful misconduct, including without limitation, fraud, embezzlement, theft or dishonesty in the course of the Executive’s employment with the Company; (C) the Executive’s conviction of, or plea of guilty or nolo contendere to a felony or a crime other than a felony, which felony or crime involves moral turpitude or a breach of trust or fiduciary duty owed to the Company or any of its Affiliates; or (D) the Executive’s disclosure of trade secrets or material, non-public confidential information of the Company or any of its Affiliates in violation of the Company’s or its Affiliates’ policies that applies to the Executive or any agreement with the Company or any of its Affiliates in respect of confidentiality, nondisclosure, non-competition or otherwise.

	
(ii)
	
In the event that the Company terminates the Executive’s employment for Cause, the Executive will only be entitled to payment of the Accrued Obligations in accordance with the schedule described in Section 4(a).

(d)Termination Without Cause.  The Company may terminate the Term and the Executive’s employment for any reason at any time.  If the Executive’s employment is terminated by the Company for any reason other than the reasons set forth in subsections (a), (b), (c), (e) or (f) of this Section 4, the Executive will be entitled to the following payments and benefits:

	
(i)
	
Payment of the Accrued Obligations in accordance with the schedule described in Section 4(a);

	
(ii)
	
Continuation of the Executive’s Base Salary in effect on the date of the Executive’s termination of employment for 12 months following the date of the Executive’s termination.  Except as otherwise prohibited by applicable Federal or state law or regulation, the payments due under this Section 4(d)(ii) shall begin immediately following the date of termination and be made in accordance with the Company’s normal payroll practices over such period;

	
(iii)
	
Payment of any accrued but unpaid bonus, which shall be paid pursuant to the terms of the applicable bonus plan; and

	
(iv)
	
Provided that the Executive elects COBRA coverage, the Company shall pay the Executive’s COBRA premium payments consistent with the group health, dental and vision coverage in existence on the date of termination beginning on the date of termination and continuing until the earlier of:  (A) the 12th consecutive month following the Executive’s termination; or (B) the Executive’s becoming eligible as a full-time employee to participate in the group health plan of any other employer.

(e)Good Reason Termination.  The Executive may resign and terminate the Term and the Executive’s employment with the Company for “Good Reason” upon not less than 30 days prior written notice to the Company if the Company fails to fully cure the effect of such condition within 30 days following receipt of Executive’s written notice.

	
(i)
	
For purposes of this Agreement, the Executive will have “Good Reason” to terminate the Executive’s employment with the Company if any of the following events occur without the Executive’s consent:

	
(A)
	
A material diminution in the Executive’s Base Salary;

	
(B)
	
A material diminution in the Executive’s authority, duties or responsibilities as set forth in Section 2;

	
(C)
	
To the extent applicable, a requirement that the Executive report to a corporate officer or employee instead of reporting directly to the Board of Directors of the Company or its Affiliates or any of their successors, survivors or assigns;

	
(D)
	
A material diminution in title;

	
(E)
	
A material change in the geographic location in which the Executive must perform services under this Agreement; or

	
(F)
	
Any other action or inaction that constitutes a material breach of this Agreement.

Notwithstanding the foregoing, Good Reason shall cease to exist for an event on the 90th day following the later of its occurrence or the Executive’s knowledge thereof, unless the Executive has given the Company written notice of Executive’s intent to terminate prior to such date.

The mere occurrence of a Change in Control shall not constitute “Good Reason” for the Executive to voluntarily terminate the Term and the Executive’s employment.

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(ii)
	
In the event that the Executive terminates the Term and the Executive’s employment with the Company for Good Reason pursuant to this Section 4(e), the Executive will be entitled to:

	
(A)
	
Payment of the Accrued Obligations in accordance with the schedule described in Section 4(a);

	
(B)
	
Continuation of the Executive’s Base Salary in effect on the date of the Executive’s termination of employment or, if greater, the Executive’s Base Salary in effect immediately prior to any event described in Section 4(e)(i)(A) for one year following the date of the Executive’s termination, which payments shall begin immediately following the date of termination (subject to applicable Federal and state law and regulation) and be payable in accordance with the Company’s normal payroll practices, over such period;

	
(C)
	
Any accrued but unpaid annual bonus, which shall be paid pursuant to the terms of the applicable bonus plan; and

	
(D)
	
Provided that the Executive elects COBRA coverage, the Company shall pay the Executive’s COBRA premium payments consistent with the group health, dental and vision coverage in existence on the date of termination beginning on the date of termination and continuing until the earlier of:  (A) the 12th consecutive month following the Executive’s termination; or (B) the Executive’s becoming eligible as a full-time employee to participate in the group health plan of any other employer.

(f)Termination in Connection with Change In Control.  In the event that during the Term, a Change in Control of the Company occurs and, within 9 months prior or 12 months following such Change in Control, this Agreement and the Executive’s employment is terminated by the Company or its successor without Cause as described in Section 4(d) or is terminated for Good Reason by the Executive as described in Section 4(e), then in lieu of any payment that might be provided under Section 4 of this Agreement, the Executive will be entitled to the following payments and benefits from the Company or its successors:

	
(i)
	
Payment of the Accrued Obligations in accordance with the schedule described in Section 4(a);

	
(ii)
	
A single lump sum payment equal to two (2) times the greater of:  (A) the total annual Base Salary paid or payable to the Executive with respect to the most recently completed fiscal year of the Company or (B) the Base Salary in effect immediately prior to the Change in Control or immediately prior to any event described in Section 4(e)(i)(A), which such payment shall be made within 60 days after the date of the Executive’s termination or the occurrence of the Change in Control, as applicable;

	
(iii)
	
Any accrued but unpaid annual bonus, which shall be paid pursuant to the terms of the applicable bonus plan; and

	
(iv)
	
Provided that the Executive elects COBRA coverage, the Company shall pay the Executive’s COBRA premium payments consistent with the group health, dental and vision coverage in existence on the date of termination beginning on the date of termination and continuing until the earlier of:  (A) the 12th consecutive month following the Executive’s termination; or (B) the Executive’s becoming eligible as a full-time employee to participate in the group health plan of any other employer; or, if Executive’s termination occurred prior to the Change in Control, a single lump sum payment equal to the value of the benefits described in this Section 4(f)(iv), payable within 60 days following the Change in Control.

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

	
(i)
	
The date any one person, or more than one person acting as a group acquires ownership of shares of the Company or United Community Financial Corp. (“UCFC”) possessing 25% or more of the total voting power of the shares of the Company or UCFC;

	
(ii)
	
The date that any one person, or more than one person acting as a group, acquires the ability to control the election of a majority of the directors of the Company or UCFC;

	
(iii)
	
The date a majority of the members of the Board of the Company or Bank is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of such Board before the date of the appointment or election; or

	
(iv)
	
The acquisition by any person, or more than one person acting as a group, of “control” of the Company within the meaning of 12 C.F.R. Section 303.81(c).

For purposes of this subsection (g), the term “person” refers to an individual or corporation, partnership, trust, association, limited liability company or other organization, but does not include the Executive and any person or persons with whom the Executive is “acting in concert” within the meaning of 12 C.F.R. Section 303.81 (b).

(h)Treatment of Taxes.  If payments provided under this Agreement, when combined with payments and benefits under all other plans and programs maintained by the Company, constitute “parachute payments” within the meaning of Section 280G of the Code, the Company or its successor will reduce the Executive’s payments and benefits under this Agreement and/or the other plans 

4

 

and programs maintained by the Company so that the Executive’s total payments and benefits under this Agreement and all other plans and programs will be $1.00 less than the amount that would be considered a “parachute payment.”  Any reduction pursuant to this Section 4(h) shall be applied consistent with the requirements of Section 409A of the Code.  In addition, in the event of any subsequent inquiries regarding the treatment of tax payments under this Section 4(i), the parties will agree to the procedures to be followed in order to deal with such inquiries.

(i)Expiration of Term of Agreement.  If the Term expires and it is not extended by the parties, the Executive’s employment will terminate at the end of such term and the Executive will be entitled to Payment of the Accrued Obligations in accordance with the schedule described in Section 4(a).

(j)Release.  As a condition to receiving any payments, other than payment of the Accrued Obligations and accrued but unpaid bonus (if any), pursuant to this Agreement, the Executive agrees to release the Company and all of its Affiliates, employees and directors from any and all claims that the Executive may have against the Company and all of its Affiliates, employees and directors up to and including the date the Executive signs a Waiver and Release of Claims (“Release”) in the form provided by the Company, which form shall provide for such waivers and/or revocation periods as are required by, or advisable under, applicable Federal law and/or regulation.  Notwithstanding anything to the contrary in this Agreement, the Executive acknowledges that the Executive is not entitled to receive, and will not receive, any payments pursuant to this Agreement unless and until the Executive provides the Company with said Release prior to the first date that payment is to be made or is to commence.

(k)Coordination of Benefits.  If the Executive’s employment is terminated for any reason described in Sections 4(d) or (e) and, after such termination, Executive becomes entitled to payments under Section 4(f), the Executive shall receive the payments described in Section 4(f), at the time and in the form described in Section 4(f), less the amount of any payments previously paid that are described in Sections 4(d) or (e).

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

6.Indemnification; Insurance.

(a)Indemnification.  The Company agrees to indemnify the Executive and his heirs, executors, and administrators to the fullest extent permitted under applicable law and regulations, including, without limitation 12 U.S.C. Section 1828(k), against any and all expenses and liabilities reasonably incurred by the Executive in connection with or arising out of any action, suit or proceeding in which the Executive may be involved by reason of having been a director or officer of the Company, or any Affiliate, whether or not the Executive is a director or officer at the time of incurring any such expenses or liabilities.  Such expenses and liabilities shall include, but shall not be limited to, judgments, court costs and attorneys’ fees and the cost of reasonable settlements.  The Executive shall be entitled to indemnification in respect of a settlement only if the Board of Directors of the Company has approved such settlement.  Notwithstanding anything herein to the contrary, (i) indemnification for expenses shall not extend to matters for which the Executive has been terminated, and (ii) the obligations of this Section shall survive the termination of this Agreement.  Nothing contained herein shall be deemed to provide indemnification prohibited by applicable law or regulation.

(b)Insurance.  During the Term of the Agreement, the Company shall provide the Executive (and his heirs, executors, and administrators) with coverage under a directors’ and officers’ liability policy at the Company’s expense, at least equivalent to such coverage otherwise provided to the other directors and senior executives of the Company.

7.Special Regulatory Events.  Notwithstanding the provisions of Section 4 of this Agreement, the obligations of the Company to the Executive shall be as follows in the event of the following circumstances:

(a)If the Executive is suspended and/or temporarily prohibited from participating in the conduct of the Company’s affairs by a notice served under section 8(e)(3) or 8(g)(1) of the Federal Deposit Insurance Act (hereinafter referred to as the “FDIA”), the Company’s obligations under this Agreement shall be suspended as of the date of service of such notice, unless stayed by appropriate proceedings.  If the charges in the notice are dismissed, the Company shall pay the Executive all of the compensation withheld while the obligations in this Agreement were suspended and reinstate any of the obligations that were suspended.

(b)If the Executive is removed and/or permanently prohibited from participating in the conduct of the Company’s affairs by an order issued under Section 8(e)(4) or 8(g)(1) of the FDIA, all obligations of the Company under this Agreement shall terminate as of the effective date of such order; provided, however, that vested rights of the Executive shall not be affected by such termination.

(c)If the Company is in default, as defined in section 3(x)(1) of the FDIA, all obligations under this Agreement shall terminate as of the date of default; provided, however, that vested rights of the Executive shall not be affected.

(d)In the event and to the extent the terms and conditions of this Agreement are subject to regulatory approval and/or may be nullified or rendered inoperative or inapplicable by operation of applicable law, the Agreement shall be effective only to the extent permissible under such regulatory and/or other legal requirements, but to the fullest extent as may be permissible thereunder.

5

 

8.Consolidation, Merger or Sale of Assets.  Nothing in this Agreement shall preclude the Company from consolidating with, merging into, or transferring all, or substantially all, of their assets to another corporation that assumes all their obligations and undertakings hereunder.  Upon such a consolidation, merger or transfer of assets, the term “Company” as used herein, shall mean such other corporation or entity, and this Agreement shall continue in full force and effect.

9.Noncompetition Covenant.  The Executive agrees that, during the Term, including any extension thereof, and for a period of one year following the Executive’s termination of employment, other than a termination pursuant to Section 4, the Executive shall not, without the express written consent of the Company:

(a)Be engaged, directly or indirectly, in any county where the Company has an office at the time of Executive’s termination, as a partner, officer, director, employee, consultant, independent contractor, security holder, or owner of any entity engaged in any business activity competitive with that of the Company or its Affiliates; provided, however, nothing in this Agreement shall prevent the Executive from owning or acquiring an interest in any entity engaged in any competitive business activity if such interest does not constitute “control” as defined in 12 C.F.R. Section 303.81(c);

(b)Call upon or solicit, either for the Executive or for any other person or firm that engages in competition with any business operation actively conducted by the Company or any Affiliate during the Term, any customer with whom the Company or any Affiliate directly conducts business during the Term; or interfere with any relationship, contractual or otherwise, between the Company or any Affiliate and any customer with whom the Company or any Affiliate directly conducts business during the Term; or

(c)Induce or solicit any person who is at the date of termination or was during the 12 months preceding termination an employee, officer or agent of the Company or any Affiliate to terminate said relationship.

In the event of a breach by the Executive of any covenant set forth in this Section 9, the term of such covenant will be extended by the period of the duration of such breach and such covenant will survive any termination of this Agreement but only for the limited period of such extension.

The restrictions on competition provided herein shall be in addition to any restrictions on competition contained in any other agreement between the Company and the Executive and may be enforced by the Company and/or any successor thereto, by an action to recover payments made under this Agreement, an action for injunction, and/or an action for damages.  The provisions of this Section 9 constitute an essential element of this Agreement, without which the Company would not have entered into this Agreement.  Notwithstanding any other remedy available to the Company at law or at equity, the parties hereto agree that the Company or any successor thereto, will have the right, at any and all times, to seek injunctive relief in order to enforce the terms and conditions of this Section 9.

If the scope of any restriction contained in this Section 9 is too broad to permit enforcement of such restriction to its fullest extent, then such restriction will be enforced to the maximum extent permitted by law, and the Executive hereby consents and agrees that such scope may be judicially modified accordingly in any proceeding brought to enforce such restriction.

10.Confidential Information.  The Executive will hold in a fiduciary capacity, for the benefit of the Company, all secret or confidential information, knowledge, and data relating to the Company and its Affiliates (“Confidential Information”), that shall have been obtained by the Executive in connection the Executive’s employment with the Company and that is not public knowledge (other than by acts by the Executive or the Executive’s representatives in violation of this Agreement).  During the Term and after termination of the Executive’s employment with the Company, the Executive will not, without the prior written consent of the Company, communicate or divulge any material non-public Confidential Information to anyone other than the Company or those designated by it, unless the communication of such information, knowledge or data is required pursuant to a compulsory proceeding in which the Executive’s failure to provide such information, knowledge, or data would subject the Executive to criminal or civil sanctions and then only if the Executive provides prior notice to the Company prior to disclosure.

The restrictions imposed on the release of information described in this Section 10 may be enforced by the Company and/or any successor thereto, by an action for injunction or an action for damages.  The provisions of this Section 10 constitute an essential element of this Agreement, without which the Company would not have entered into this Agreement.  Notwithstanding any other remedy available to the Company at law or at equity, the parties hereto agree that the Company or any successor thereto, will have the right, at any and all times, to seek injunctive relief in order to enforce the terms and conditions of this Section 10.

If the scope of any restriction contained in this Section 10 is too broad to permit enforcement of such restriction to its fullest extent, then such restriction will be enforced to the maximum extent permitted by law, and the Executive hereby consents and agrees that such scope may be judicially modified accordingly in any proceeding brought to enforce such restriction.

6

 

11.Non-Assignability.  Neither this Agreement nor any right or interest hereunder shall be assignable by the Executive, his beneficiaries or legal representatives without the Company’s prior written consent; provided, however, that nothing in this Section 11 shall preclude the Executive from designating a beneficiary to receive any benefits payable hereunder upon his death or the executors, administrators or legal representatives of the Executive or his estate from assigning any rights hereunder to the person or persons entitled thereto.

12.No Attachment.  Except as required by law, no right to receive payment 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 of assignment by operation of law, and any attempt, voluntary or involuntary, to effect any such action shall be null, void and of no effect.

13.Binding Agreement.  This Agreement shall be binding upon, and inure to the benefit of, the Executive and the Company and its successors and assigns.

14.Amendment of Agreement.  This Agreement may not be modified or amended, except by an instrument in writing signed by the parties hereto.

15.Waiver.  No term or condition of this Agreement shall be deemed to have been waived, nor shall there be an 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 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 the act specifically waived.

16.Severability.  If, for any reason, any provision of this Agreement is held invalid, such invalidity shall not affect the other provisions of this Agreement not held so invalid, and each such other provision shall, to the full extent consistent with applicable law, continue in full force and effect.  If this Agreement is held invalid or cannot be enforced, then any prior Agreement between the Company (or any predecessor thereof) and the Executive shall be deemed reinstated to the full extent permitted by law, as this Agreement had not been executed.

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

18.Governing Law.  This Agreement has been executed and delivered in the State of Ohio and its validity, interpretation, performance, and enforcement shall be governed by the laws of the State of Ohio, except to the extent that federal law is governing.

19.Effect of Prior Agreements.  This Agreement contains the entire understanding between the parties hereto and supersedes any prior employment agreement between the Company or any predecessor of the Company and the Executive.

20.Arbitration.  Any dispute concerning the interpretation or application of this Agreement that cannot be resolved by mutual agreement of the Company and Executive must be submitted for determination by an impartial arbitrator selected in accordance with the American Arbitration Association’s Employment Dispute Resolution Rules.

21.Notices.  Any notice required or permitted under this Agreement shall be in writing and either delivered personally or sent by nationally recognized overnight courier, express mail, or certified or registered mail, postage prepaid, return receipt requested, at the following respective address unless the party notifies the other party in writing of a change of address:

If to the Company:

Chief Executive Officer

The Home Savings and Loan Company of Youngstown, Ohio

275 West Federal Street

Youngstown, Ohio  44503-1203

With a copy to:

General Counsel

The Home Savings and Loan Company of Youngstown, Ohio

275 West Federal Street

Youngstown, Ohio  44503-1203

7

 

If to the Executive:

Matthew T. Garrity

370 Appleblossom Lane

Bay Village, OH  44140

A notice delivered personally shall be deemed delivered and effective as of the date of delivery.  A notice sent by overnight courier or express mail shall be deemed delivered and effective one (1) day after it is deposited with the postal authority or commercial carrier.  A notice sent by certified or registered mail shall be deemed delivered and effective two (2) days after it is deposited with the postal authority.

22.Code Section 409A Requirements.

(a)Treatment of Reimbursements and/or In-Kind Benefits.  Notwithstanding anything in this Agreement to the contrary, any reimbursements or in-kind benefits provided under this Agreement (including any reimbursement for or provision or in-kind medical benefits beyond the period of time described in Treasury Regulation §1.409A-1(b)(9)) shall be made or provided in accordance with the requirements of Section 409A of the Code, including, where applicable, the requirements that:  (1) any reimbursement is for expenses incurred during the period of time specified in this Agreement, (2) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during any taxable year of the Executive may not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year of the Executive, (3) the reimbursement of an eligible expense will be made no later than the last day of the Executive’s taxable year following the year in which the expense is incurred, and (4) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.

(b)Six-Month Distribution Delay for Specified Employees.  Notwithstanding anything in this Agreement to the contrary, in the event that the Executive is a “specified employee” (as defined in Section 409A of the Code) of the Company, or its Affiliates, as determined pursuant to the Company’s policy for identifying specified employees, on the date of the Executive’s termination of employment and the Executive is entitled to a payment and/or a benefit under this Agreement that is required to be delayed pursuant to Section 409A(a)(2)(B)(i) of the Code, then such payment or benefit, as applicable, shall not be paid or provided (or begin to be paid or provided) until the first day of the seventh month following the date of the Executive’s termination of employment (or, if earlier, the date of the Executive’s death).  The first payment that can be made to the Executive following such period shall include the cumulative amount of any payments or benefits that could not be paid or provided during such period due to the application of Section 409A(a)(2)(B)(i) of the Code.

(c)Compliance with Section 409A of the Code.  The parties intend that this Agreement comply with, or be exempt from, the requirements of Section 409A of the Code, as applicable, and, to the maximum extent permitted by law, shall administer, operate and construe this Agreement accordingly.  For purposes of the limitations on nonqualified deferred compensation under Section 409A of the Code, each payment of compensation under this Agreement shall be treated as a separate payment of compensation for purposes of applying the deferral election rules of Section 409A of the Code and the exclusion from Section 409A of the Code for certain “short-term deferrals”.  Any amounts payable solely on account of an “involuntary separation from service” within the meaning of Section 409A of the Code shall be excludible from the requirements of Section 409A of the Code, either as “separation pay” or as a “short-term deferral” to the maximum possible extent.  Nothing herein shall be construed as the guarantee of any particular tax treatment to the Executive, and none of the Company, their Boards of Directors, or any Affiliates shall have any liability with respect to any failure to comply with the requirements of Section 409A of the Code.

[REMAINDER OF PAGE INTENTIONALLY BLANK]

 

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IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer and the Executive has signed this Agreement, each as of the day and year first above written.

 

	
THE HOME SAVINGS AND LOAN COMPANY OF

	
YOUNGSTOWN, OHIO

	
 
	
 
	
 

	
By: 
	
 
	
/s/ Patrick W. Bevack

	
Name
	
 
	
:  Patrick W. Bevack

	
Title:
	
 
	
President and Chief Executive Officer

 

	
/s/ Matthew T. Garrity

	
Name:
	
 
	
Matthew T. Garrity

 

9

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