Document:

Exhibit 10.3

        

       

        

       
        Execution Version

         

        

      

      Warrant Exchange Agreement

       

      This Warrant Exchange Agreement (the
        “Agreement”) is made and entered into as of September 10, 2020, by and between Rexahn Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and the undersigned holder of the
        Existing Warrants (as defined below) (the “Holder”).

       

      Recitals

       

      A.            The Holder previously acquired those certain Common Stock Purchase Warrants currently
        exercisable into such aggregate number of shares of common stock, par value $0.0001 per share, of the Company (the “Common Stock”), as set forth on Schedule A attached hereto (the “Existing Warrants”).

       

      B.             The Company has duly authorized the issuance to the Holder, in exchange for the Existing Warrants, of such aggregate number of shares of
        Common Stock as are set forth on Schedule A attached hereto (the “Exchange Shares”).

       

      C.             Each of the Company and the Holder desire to effectuate such exchange on the basis and subject to the terms and conditions set forth in this
        Agreement.

       

      D.             The exchange of the Existing Warrants for the Exchange Shares is being made in reliance upon the exemption from registration provided by
        Section 3(a)(9) of the Securities Act of 1933, as amended (the “Securities Act”).

       

      Agreement

       

      The parties to this Agreement, intending to be legally bound, agree as follows:

       

      1.              Exchange of Existing
          Warrants. The Holder hereby conveys, assigns, transfers and surrenders the Existing Warrants to the Company and, in exchange, the Company shall cancel the Existing Warrants and issue the Exchange Shares
        to the Holder, which Exchange Shares shall be issued without a restrictive legend and shall be freely tradable by the Holder (the “Exchange”). In connection with the Exchange, the Holder hereby relinquishes all rights, title and interest in
        the Existing Warrants (including any claims the Holder may have against the Company related thereto) and assigns the same to the Company.  The Holder shall use commercially reasonable efforts to promptly surrender to the Company at the address set
        forth on the Company’s signature page hereto the original versions of the Existing Warrants or, if the original versions of the Existing Warrants have been lost, mutilated or destroyed, an affidavit to such effect and indemnity reasonably
        acceptable to the Company. The Existing Warrants are hereby deemed cancelled and of no further force and effect, effective immediately, and shall hereafter represent only the right to receive the Exchange Shares set forth next to such Existing
        Warrant on Schedule A.

       

      2.           Issuance of Exchange Shares. Immediately following the execution and delivery of this Agreement, the
        Company shall instruct its transfer agent to credit the Exchange Shares to the Holder’s account balance with the Depository Trust Company via the Deposit/Withdrawal at Custodian system, pursuant to the instructions set forth on the Holder’s
        signature page hereto.

       

      3.              Representations and Warranties of the Holder.

       

      

      (a)          The Holder is duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is
        organized.

       

      
        
          

      

      
      (b)        The Holder has all requisite power, authority and capacity to enter into this Agreement and consummate the transactions
        contemplated hereby. The execution, delivery and performance of this Agreement, and the consummation of the transactions contemplated hereby by the Holder, have been duly authorized by all necessary action on the part of the Holder, and no other
        proceedings on the part of the Holder are necessary to authorize the execution, delivery or performance of this Agreement or the consummation of any of the transactions contemplated hereby.

       

      (c)          This Agreement has been duly executed and delivered by the Holder, and, assuming due execution and delivery by the Company,
        constitutes or will constitute the legal, valid and binding obligation of the Holder, enforceable against the Holder in accordance with its terms, subject to limitations on enforcement by general principles of equity and by bankruptcy or other laws
        affecting the enforcement of creditors’ rights generally.

       

      (d)         The Holder understands that the Exchange Shares are being offered and sold in reliance on specific provisions of federal and
        state securities laws, specifically Section 3(a)(9) of the Securities Act, and that the Company is relying upon the truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings of the Holder set forth herein
        for purposes of qualifying for exemptions from registration under the Securities Act and applicable state securities laws.

       

      (e)          The Holder owns and holds, beneficially and of record, the entire right, title, and interest in and to the Existing
        Warrants free and clear of all Liens (as defined below). The Holder has the full power and authority to transfer and dispose of the Existing Warrants free and clear of any Lien other than restrictions under the Securities Act and applicable state
        securities laws. Other than the transactions contemplated by this Agreement, there is no outstanding vote, plan, pending proposal, or other right of any person to acquire all or any portion of the Existing Warrants. As used herein, “Liens”
        shall mean any security or other property interest or right, claim, lien, pledge, option, charge, security interest, contingent or conditional sale, or other title claim or retention agreement, interest or other right or claim of third parties,
        whether perfected or not perfected, voluntarily incurred or arising by operation of law, and including any agreement (other than this Agreement) to grant or submit to any of the foregoing in the future.

       

      (f)          The execution, delivery and performance by the Holder of this Agreement, and the consummation by the Holder of the
        transactions contemplated hereby, will not (i) result in a violation of the organizational documents of the Holder, (ii) conflict with or result in a breach of or default (or an event which with notice or lapse of time or both would become a
        default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Holder is a party, or (iii) result in a violation of any law, rule, regulation, order,
        judgment or decree (including federal and state securities laws) applicable to the Holder, except in the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations which would not, individually or in the aggregate,
        reasonably be expected to have a material adverse effect on the ability of the Holder to perform its obligations hereunder.

       

      (g)         The Holder is acquiring the Exchange Shares in the ordinary course of its business. The Holder has such knowledge,
        sophistication, and experience in business and financial matters so as to be capable of evaluation of the merits and risks of the prospective investment in the Exchange Shares, and has so evaluated the merits and risk of such investment. The Holder
        is an “accredited investor” as defined in Regulation D under the Securities Act.

       

      
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      (h)         The Holder is not (i) an “affiliate” of the Company (as defined in Rule 144 under the Securities Act (“Rule 144”)) or
        (ii) the “beneficial owner” (as that term is defined under the Exchange Act) of more than 10% of the Company’s outstanding Common Stock assuming that the Company’s outstanding shares of common stock are as set forth on the cover page of its most
        recent Quarterly Report on Form 10-Q.

       

      (i)           The Holder has been given full and adequate access to information relating to the Company, including its business,
        finances and operations as the Holder has deemed necessary or advisable in connection with the Holder’s evaluation of the Exchange. The Holder has not relied upon any representations or statements made by the Company or its agents, officers,
        directors, employees or stockholders in regard to this Agreement or the basis thereof. The Holder has had the opportunity to review the Company’s filings with the Securities and Exchange Commission. The Holder and its advisors, if any, have been
        afforded the opportunity to ask questions of the Company. The Holder understands that its investment in the Exchange Shares involves a high degree of risk. The Holder has sought such accounting, legal and tax advice as it has considered necessary
        to make an informed investment decision with respect to its acquisition of the Exchange Shares. The Holder is relying solely on its own accounting, legal and tax advisors, and not on any statements of the Company or any of its agents or
        representatives, for such accounting, legal and tax advice with respect to its acquisition of the Exchange Shares and the transactions contemplated by this Agreement.

       

      (j)          The Holder acknowledges that the terms of the Exchange have been established by negotiation between the Company and the
        Holder. The Holder acknowledges that the Company has not made any representation to the Holder about the advisability of this decision or the potential future value of any of the Existing Warrants. THE HOLDER ACKNOWLEDGES THAT, BY EXCHANGING THE
        EXISTING WARRANTS FOR SHARES OF COMMON STOCK PURSUANT TO THIS AGREEMENT, THE HOLDER WILL NOT BENEFIT FROM (I) ANY FUTURE APPRECIATION IN THE MARKET VALUE OF THE EXISTING WARRANTS OR (II) ANY RIGHTS AS A HOLDER OF THE EXISTING WARRANTS IN CONNECTION
        WITH ANY BUSINESS COMBINATION TRANSACTIONS, INCLUDING THE COMPANY’S PROPOSED BUSINESS COMBINATION TRANSACTION WITH OCUPHIRE PHARMA, INC. (“OCUPHIRE”) PURSUANT TO THAT CERTAIN AGREEMENT AND PLAN OF MERGER AND REORGANIZATION, DATED JUNE 17, 2020, BY
        AND AMONG THE COMPANY, RAZOR MERGER SUB, INC. AND OCUPHIRE, AS AMENDED BY THAT CERTAIN FIRST AMENDMENT TO AGREEMENT AND PLAN OF MERGER AND REORGANIZATION DATED JUNE 29, 2020, INCLUDING WITHOUT LIMITATION, ANY RIGHTS TO RECEIVE CASH PAYMENTS
        PURSUANT TO SECTION 3(E) OF THE EXISTING WARRANTS.

       

      (k)          Neither the Holder nor anyone acting on the Holder’s behalf has paid or given any person a commission or other remuneration
        directly or indirectly in connection with or in order to solicit or facilitate the Exchange.

       

      4.              Representations and Warranties of the Company.

       

      (a)            The Company is duly incorporated, validly existing and in good standing under the laws of
        the State of Delaware.

       

      (b)         The Company has all requisite power, authority and capacity to enter into this Agreement and
        consummate the transactions contemplated hereby. The execution, delivery and performance of this Agreement, and the consummation of the transactions contemplated hereby by the Company, have been duly authorized by all necessary action on the part
        of the Company and its board of directors (or a duly authorized committee thereof), and no other proceedings on the part of the Company are necessary to authorize the execution, delivery or performance of this Agreement or the consummation of any
        of the transactions contemplated hereby.

       

      
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      (c)         This Agreement has been duly executed and delivered by the Company, and, assuming due execution and delivery by the Holder,
        constitutes or will constitute the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, subject to limitations on enforcement by general principles of equity and by bankruptcy or other
        laws affecting the enforcement of creditors’ rights generally.

       

      (d)          The issuance of the Exchange Shares is duly authorized and, upon issuance in accordance with the terms hereof, the Exchange
        Shares shall be validly issued, fully paid and non-assessable.

       

      (e)          The execution, delivery and performance by the Company of this Agreement, and the consummation by the Company of the
        transactions contemplated hereby, will not (i) result in a violation of the organizational documents of the Company, (ii) conflict with or result in a breach of or default (or an event which with notice or lapse of time or both would become a
        default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company is a party, or (iii) result in a violation of any law, rule, regulation, order,
        judgment or decree (including federal and state securities laws) applicable to the Company, except in the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations which would not, individually or in the aggregate,
        reasonably be expected to have a material adverse effect on the ability of the Company to perform its obligations hereunder.

       

      (f)          Neither the Company nor anyone acting on the Company’s behalf has paid or given any commission or other remuneration to any
        person directly or indirectly in connection with or in order to solicit or facilitate the Exchange.

       

      (g)          Neither the Company nor any subsidiary is required to obtain any consent from, authorization or order of, or make any
        filing or registration with any court, governmental agency or any regulatory or self-regulatory agency or any other person, in order for the Company to execute, deliver or perform any of its respective obligations under or contemplated by this
        Agreement. All consents, authorizations, orders, filings and registrations which the Company or any subsidiary is required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to the date hereof, and neither the
        Company nor any of its subsidiaries are aware of any facts or circumstances which might prevent the Company or any of its subsidiaries from obtaining or effecting any of the registration, application or filings contemplated by this Agreement.

       

      (h)          The Company hereby represents and warrants that the Existing Warrrants were issued by the Company pursuant to one or more
        of the following registration statements (registration numbers 333-196255 and 333-218285) that were effective at the time of issuance of the applicable Existing Warrants.  The Company acknowledges that the issuance of the Exchange Shares in
        accordance with this Agreement will be exempt from registration by virtue of Section 3(a)(9) of the Securities Act. The Company has not taken any action that would cause such exemption not to be available.

       

      (i)          The Company is not, nor has it been at any time in the previous twelve (12) months, a “Shell Company” as such type of
        “issuer” is described in Rule 144(i)(1) of the Securities Act.

       

      5.            Section 3(a)(9) Exchange. The parties acknowledge and agree that the Exchange is being completed in accordance with
        Section 3(a)(9) of the Securities Act. The Company acknowledges that, effective upon consummation of the Exchange, the Exchange Shares will take on the registered characteristics of the Existing Warrants and that accordingly will be issued by the
        Company without any restrictive legends.  The Company agrees not to take a position contrary to this Section 5. The Company shall not require the Holder to obtain an opinion of its counsel in connection with the Company’s issuance of the
        Exchange Shares as contemplated hereby.

       

      
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      6.           Issuance of Form 8-K. On or before 9:00 a.m. (New York City time) on September 11, 2020, the Company shall file a
        Current Report on Form 8-K with the Securities and Exchange Commission disclosing all material terms of the transaction contemplated hereunder (“8-K Filing”).  From and after the issuance of the 8-K Filing, the Company represents to the
        Holder that it shall not be in possession of any material, nonpublic information received from the Company or any of its officers, directors, employees or agents, that is not disclosed in the 8-K Filing. In addition, effective upon the filing of
        the 8-K Filing, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement, whether written or oral, between the Company or any of its officers, directors, employees or agents, on the one hand,
        and the Holder or any of its affiliates, on the other hand, related to the transactions contemplated hereby or with respect to information shared in connection herewith shall terminate.

       

      7.              Miscellaneous.

       

      (a)          Entire Agreement. This Agreement sets forth the entire understanding of the parties hereto relating to the subject matter hereof and supersedes all prior agreements and understandings among
        or between any of the parties relating to the subject matter hereof.

       

      (b)          Survival of Warranties. The representations and warranties of the parties contained in or made pursuant to this
        Agreement shall survive the execution and delivery of this Agreement.

       

      (c)          Governing Law; Consent to Jurisdiction. This Agreement, and any action, arbitration, suit or other legal proceeding
        arising out of or relating to this Agreement (including the enforcement of any provision of this Agreement), any of the transactions contemplated by this Agreement or the legal relationship of the parties to this Agreement (whether at law or in
        equity, whether in contract or in tort or otherwise), shall be governed by and construed and interpreted in accordance with the laws of the State of Delaware irrespective of the choice of laws principles of the State of Delaware, as to all matters,
        including matters of validity, construction, effect, enforceability, performance and remedies and in respect of the statute of limitations or any other limitations period applicable to any claim, controversy or dispute. Each of the parties hereto
        irrevocably consents to the exclusive jurisdiction and venue of the Delaware Court of Chancery in connection with any matter based upon or arising out of this Agreement.

       

      (d)         Amendments. This Agreement may not be amended, modified,
        altered or supplemented other than by means of a written instrument duly executed and delivered on behalf of the Company and the Holder.

       

      (e)           Waiver. No failure on the part of any person to exercise any power, right, privilege or remedy under this
        Agreement, and no delay on the part of any person in exercising any power, right, privilege or remedy under this Agreement, shall operate as a waiver of such power, right, privilege or remedy; and no single or partial exercise of any such power,
        right, privilege or remedy shall preclude any other or further exercise thereof or of any other power, right, privilege or remedy. No person shall be deemed to have waived any claim arising out of this Agreement, or any power, right, privilege or
        remedy under this Agreement, unless the waiver of such claim, power, right, privilege or remedy is expressly set forth in a written instrument duly executed and delivered on behalf of such person; and any such waiver shall not be applicable or have
        any effect except in the specific instance in which it is given.

       

      (f)          Counterparts and Exchanges by Electronic Transmission or Facsimile. This Agreement may be executed in several
        counterparts, each of which shall constitute an original and all of which, when taken together, shall constitute one agreement. The exchange of a fully executed Agreement (in counterparts or otherwise) by electronic transmission in .PDF format
        shall be sufficient to bind the parties to the terms of this Agreement.

       

      
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      (g)          Severability. In the event that any provision of this
        Agreement, or the application of any such provision to any person or set of circumstances, shall be determined to be invalid, unlawful, void or unenforceable to any extent, the remainder of this Agreement, and the application of such provision to
        persons or circumstances other than those as to which it is determined to be invalid, unlawful, void or unenforceable, shall not be impaired or otherwise affected and shall continue to be valid and enforceable to the fullest extent permitted by
        applicable law.

       

      (h)       Successors and Assigns. This Agreement shall be binding upon
        each of the parties hereto and each of their respective heirs, executors, personal representatives, successors and permitted assigns, if any. This Agreement shall inure to the benefit of the Company and the Holder and the respective successors and
        permitted assigns of the foregoing (if any). Neither party shall be permitted to assign any of such party’s rights or delegate any of such party’s obligations under this Agreement without the other party’s prior written consent. Any attempted
        assignment or delegation by a party in violation of this Section 7(h) shall be null and void.

       

      (i)            No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto
        and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

       

      (j)            Further Assurances. Each party shall do and perform, or cause to be done and performed, all
        such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement
        and the consummation of the transactions contemplated hereby.

       

      (k)          Fees and Expenses. Each party shall pay the fees and expenses of its advisers, counsel, accountants and other
        experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement.

       

      [Remainder of page intentionally left blank.]

       

      

      
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      The parties hereto have caused this Agreement to be executed and delivered as of the date first written above.

       

      	 	
              REXAHN PHARMACEUTICALS, INC.

            

      

      

      	 	
              By:

            	
              /s/ Douglas J. Swirsky

            	 

      	 	
              Name: 

              

            	Douglas J. Swirsky
	 	
              Title:  

              

            	President and Chief Executive Officer

      

      

      	 	
              Address for Return of Existing Warrants:

            
	 	 
	 	
              Rexahn Pharmaceuticals, Inc.

            
	 	
              15245 Shady Grove Road, Suite 455

            
	 	
              Rockville, MD 20850

            
	 	
              Attention: President and Chief Executive Officer

            

      

      

      [Signature Page to Warrant Exchange Agreement]

      

      

      
        
          

      

      The parties hereto have caused this Agreement to be executed and delivered as of the date first written above.

       

      	 	
              EMPERY TAX EFFICIENT II, LP

            
	 	
              By: EMPERY ASSET MANAGEMENT, LP

            
	 	 	 
	 	
              By:

            	
              /s/ Brett Director

            	 

      	 	
              Name: 

              

            	Brett Director
	 	
              Title: 

              

            	General Counsel

      

      

      	 	
              DWAC Instructions for Exchange Shares

            
	 	 
	 	
              [•]

            	 
	 	
              [•]

            	 
	 	
              [•]

            	 
	 	
              [•]

            	 

      

      

      
        [Signature Page to Warrant Exchange Agreement]

         

        

      

      
        
          

      

      SCHEDULE A

       

      
        	
                EXISTING WARRANTS

              	 
	
                Warrant Nos.

              	
                Date of

                Original

                Issuance

              	
                Shares of

                Common

                Stock

                Issuable Upon 

                Exercise

              	
                Exercise Price

              	
                Expiration

                Date

              	
                Number of 

                Exchange

                Shares to be

                Issued

              
	
                __

              	
                November 12,

                2015

              	
                39,728

              	
                $63.60

              	
                May 13, 2021

              	
                [•]

              
	
                __

              	
                October 17,

                2017

              	
                12,866

              	
                $34.20

              	
                April 17, 2023

              	
                [•]

              
	
                8

              	
                January 25,

                2019

              	
                46,806

              	
                $9.60

              	
                January 25, 2024

              	
                [•]

              
	 	 	 	 	 	
                Total: 30,774Exhibit 10.1

 

GENERATIONS BANK

 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

This Amended and Restated
Employment Agreement (the “Agreement”) is dated this 31st day of August, 2020, to be effective as
of the Effective Date (as such term is defined in Section 23 below), by and between Generations Bank, a federally chartered
savings bank with its principal office in Seneca Falls, New York (the “Bank”), and Menzo D. Case (“Executive”).
References to the “Company” mean Generations Bancorp NY, Inc., a Maryland corporation that owns 100% of the common
stock of the Bank. The Company shall be a signatory to this Agreement for the sole purpose of guaranteeing the Bank’s performance
hereunder.

 

WITNESSETH

 

WHEREAS, the
Executive is currently employed as President and Chief Executive Officer of the Bank and is a party to an employment agreement
effective as of July 29, 2019 (the “Original Agreement”); and

 

WHEREAS, in
connection with the conversion of The Seneca Falls Savings Bank, MHC (the “MHC”) from the mutual holding company
to the stock holding company form of organization and the related offering of shares of common stock (the “Offering”)
by Generations Bancorp NY, Inc., a newly formed Maryland-chartered stock holding company which will serve as the new holding
company of the Bank upon completion of the second-step conversion (the “Company”), the Bank desires to amend
and restate the Original Agreement in order to remove any reference to the MHC structure and to make certain other changes (collectively
the “Second-Step Conversion”); and

 

WHEREAS, the
Original Agreement may be amended in accordance with Section 14 of the Original Agreement and Executive has agreed to such
amendment and restatement of the Original Agreement; and

 

WHEREAS, in
connection with the Second-Step Conversion, the parties desire to enter into this Agreement in order to induce Executive to continue
his employment with the Bank, and to provide further incentive for Executive to achieve the financial and performance objectives
of the Bank; and

 

WHEREAS, the
Bank desires to set forth the rights and responsibilities of Executive and the compensation payable to Executive, as modified from
time to time, after the Second-Step Conversion; and

 

WHEREAS, this
Agreement shall take effect, and supersede and replace the Original Agreement, as of the Effective Date.

 

NOW, THEREFORE,
in consideration of the mutual covenants herein contained, and upon the other terms and conditions hereinafter provided, the parties
hereby agree as follows:

 

1.            POSITION
AND RESPONSIBILITIES.

 

During the period of
his employment hereunder, Executive agrees to continue to serve as President and Chief Executive Officer of the Bank (the “Executive
Position”). During said period, Executive also agrees to continue to serve, if elected, as an officer and director of
any subsidiary or affiliate of the Bank. Failure to reelect Executive to Executive Position without the consent of Executive during
the term of this Agreement (except for any termination for Cause, as defined herein) shall constitute a breach of this Agreement.

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2.            TERM
AND DUTIES.

 

(a)            The
period of Executive’s employment under this Agreement shall begin as of the date first above written and shall continue for
a period of 36 full calendar months thereafter. Commencing on the first anniversary date of this Agreement, and continuing at each
anniversary date thereafter, the Agreement shall renew for an additional year such that the remaining term shall be 36 full calendar
months; provided, however, if written notice of nonrenewal is provided to Executive at least ten days and not more than 30 days
prior to any anniversary date, the term of this Agreement shall not so renew. On an annual basis prior to the deadline for the
notice period referenced above, the board of directors of the Company (the “Board of Directors”) shall conduct
a performance review of Executive for purposes of determining whether to provide notice of nonrenewal.

 

(b)            During
the period of his employment hereunder, except for periods of absence occasioned by illness, reasonable vacation periods, and reasonable
leaves of absence approved by the board of directors of the Bank (“Board”), Executive shall devote substantially
all his business time, attention, skill, and efforts to the faithful performance of his duties hereunder including activities and
services related to the organization, operation and management of the Bank; provided, however, that, with the approval of the Board
of the Bank, as evidenced by a resolution of such Board, from time to time, Executive may serve, or continue to serve, on the boards
of directors of, and hold any other offices or positions in, business companies or business organizations, which, in such Board’s
judgment, will not present any conflict of interest with the Bank, or materially affect the performance of Executive’s duties
pursuant to this Agreement it being understood that membership in and service on boards or committees of social, religious, charitable
or similar organizations does not require Board approval pursuant to this Section 2(b). For purposes of this Section 2(b),
Board approval shall be deemed to have been granted as to service with any such business company or organization that Executive
was serving as of the date of this Agreement.

 

3.            COMPENSATION,
BENEFITS AND REIMBURSEMENT.

 

(a)            The
compensation specified under this Agreement shall constitute the salary and benefits paid for the duties described in
Section 2(b). The Bank shall pay Executive as compensation a salary of not less than $277,560 per year (“Base
Salary”). Such Base Salary shall be payable biweekly, or with such other frequency as officers and employees are
generally paid. During the period of this Agreement, Executive’s Base Salary shall be reviewed at least annually. Such
review may be conducted by a Committee designated by the Board, and the Bank may increase, but not decrease (except a
decrease that is generally applicable to all employees) Executive’s Base Salary (with any increase in Base Salary to
become “Base Salary” for purposes of this Agreement). In addition to the Base Salary provided in this
Section 3(a), the Bank shall provide Executive at no cost to Executive with all such other benefits as are provided
uniformly to permanent full-time employees of the Bank. Base Salary shall include any amounts of compensation deferred by
Executive under qualified and nonqualified plans maintained by the Bank.

 

(b)            The
Bank will provide Executive with employee benefit plans, arrangements and perquisites substantially equivalent to those in which
Executive was participating or otherwise deriving benefit from immediately prior to the beginning of the term of this Agreement,
and the Bank will not, without Executive’s prior written consent, make any changes in such plans, arrangements or perquisites
which would adversely affect Executive’s rights or benefits thereunder, except as to any changes that are applicable to all
participating employees or as reasonably or customarily available. Without limiting the generality of the foregoing provisions
of this Subsection (b), Executive will be entitled to participate in or receive benefits under any employee benefit plans including,
but not limited to, retirement plans, supplemental retirement plans, pension plans, profit-sharing plans, health-and-accident insurance
plans, medical coverage or any other employee benefit plan or arrangement made available by the Bank or the Company in the future
to its senior executives and key management employees, subject to and on a basis consistent with the terms, conditions and overall
administration of such plans and arrangements. Executive will be entitled to incentive compensation and bonuses as provided in
any plan of the Bank or the Company in which Executive is eligible to participate. Nothing paid to Executive under any such plan
or arrangement will be deemed to be in lieu of other compensation to which Executive is entitled under this Agreement.

    2

     

    

  

(c)            In
addition to the Base Salary provided for by paragraph (a) of this Section 3, the Bank or the Company shall pay or reimburse
Executive for all reasonable travel and other reasonable expenses incurred by Executive performing his obligations under this Agreement
and may provide such additional compensation in such form and such amounts as the Board may from time to time determine. The Bank
shall reimburse Executive for his ordinary and necessary business expenses, including, without limitation, fees for memberships
in such clubs and organizations as Executive and the Board shall mutually agree are necessary and appropriate for business purposes,
and travel and entertainment expenses, including in connection with the performance of his duties under this Agreement, upon presentation
to the Bank of an itemized account of such expenses in such form as the Bank may reasonably require. All reimbursements shall be
paid promptly by the Bank and in any event no later than March 15 of the year immediately following the year in which the
expense was incurred.

 

4.            PAYMENTS
TO EXECUTIVE UPON AN EVENT OF TERMINATION.

 

(a)            Upon
the occurrence of an Event of Termination (as herein defined) during Executive’s term of employment under this Agreement,
the provisions of this section shall apply. As used in this Agreement, an “Event of Termination” shall mean and include
any one or more of the following: (i) the termination by the Bank of Executive’s full-time employment hereunder for
any reason other than a termination for Cause, as defined in Section 8 hereof, or a termination upon Retirement as defined
in Section 7 hereof, or a termination for Disability as set forth in Section 6(a) hereof; and (ii) to the extent
permitted under Code Section 409A, Executive’s resignation from the Bank’s employ for “Good Reason.”
Good Reason shall mean any of the following: (A) failure to elect or reelect or to appoint or reappoint Executive to Executive
Position, unless consented to by Executive, (B) a material change in Executive’s function, duties, or responsibilities,
which change would cause Executive’s position to become one of lesser responsibility, importance, or scope from the position
and attributes thereof described in Sections 1 and 2 above, to which Executive has not agreed in writing (and any such material
change shall be deemed a continuing breach of this Agreement), (C) a relocation of Executive’s principal place of employment
to a location that is more than 25 miles from the location of the Bank’s principal executive offices as of the date of this
Agreement, or a material reduction in Base Salary (except for any reduction that is part of an employee-wide reduction in pay or
benefits), or (D) material breach of this Agreement by the Bank. Upon the occurrence of any event described in clauses (ii) (A),
(B), (C), or (D) above, Executive shall have the right to elect to terminate his employment under this Agreement by resignation
within ninety (90) days) after the event giving rise to said right to elect, which termination by Executive shall be an Event of
Termination. The Bank shall have at least (30) days to remedy any condition set forth in clause (ii) (A) through (D),
provided, however, that the Bank shall be entitled to waive such period and make an immediate payment hereunder. If the Bank remedies
the condition within such thirty (30) day cure period, then no Good Reason shall be deemed to exist with respect to such condition.
If the Bank does not remedy the condition within such thirty (30) day cure period, then Executive may deliver a Notice of Termination,
as defined in Section 9(c) below, for Good Reason at any time within sixty (60) days following the expiration of such
cure period. No payments or benefits shall be due to Executive under this Agreement upon the termination of Executive’s employment
except as provided in Section 4 or 5 hereof.

    3

     

    

 

(b)            Upon
the occurrence of an Event of Termination, the Bank shall pay Executive, or, in the event of his subsequent death, his beneficiary
or beneficiaries, or his estate, as the case may be, as severance pay or liquidated damages, or both, a lump sum cash amount equal
to one and one-half times the sum of (A) the highest annual rate of Base Salary paid to Executive at any time under the Agreement,
and (B) the greater of (x) the average annual cash bonus paid to Executive with respect to the three completed fiscal
years prior to the Event of Termination, or (y) the cash bonus paid to Executive with respect to the fiscal year ended prior
to the Event of Termination. Such payments shall not be reduced in the event Executive obtains other employment following termination
of employment, and shall be payable within thirty (30) days following the Executive’s Event of Termination. Notwithstanding
the foregoing, in the event the Executive is a Specified Employee (as defined herein), then, solely, to the extent required to
avoid penalties under Code Section 409A, the Executive’s payment under this Section 4(b) shall be delayed
until the first day of the seventh month following the Executive’s Event of Termination. A “Specified Employee”
shall be interpreted to comply with Code section 409A and shall mean a key employee within the meaning of Code Section 416(i) (without
regard to paragraph 5 thereof) but an individual shall be a “Specified Employee” only if the Bank or Company is or
becomes a publicly traded company.

 

(c)            Upon
the occurrence of an Event of Termination, the Bank will provide at the Bank’s expense, life insurance and non-taxable medical
and dental coverage substantially comparable, as reasonably or customarily available, to the coverage maintained by the Bank for
Executive prior to his termination, except to the extent such coverage may be changed in its application to all Bank employees.
Such coverage shall cease 18 months following the Event of Termination. Notwithstanding the foregoing, if applicable law (including,
but not limited to, laws prohibiting discriminating in favor of highly compensated employees), or, if participation by the Executive
is not permitted under the terms of the applicable health plans, or if providing such benefits would subject the Bank to penalties,
then the Bank shall pay the Executive a cash lump sum payment reasonably estimated to be equal to the cost of such non-taxable
life, medical and dental insurance, with such payment to be made by lump sum within thirty (30) business days of the Event of Termination,
or if later, the date on which the Bank determines that such insurance coverage (or the remainder of such insurance coverage) cannot
be provided for the foregoing reasons.

 

(d)            Upon
the occurrence of an Event of Termination, any non-vested stock options granted to Executive under any stock option plan or restricted
stock plan of the Bank will fully vest.

 

(e)            For
purposes of this Agreement, “Event of Termination” as used herein shall mean “Separation from Service”
as defined in Code Section 409A and the Treasury Regulations promulgated thereunder, such that the Bank and Executive reasonably
anticipate that the level of bona fide services Executive would perform after termination would permanently decrease to a level
that is less than 50% of the average level of bona fide services performed (whether as an employee or an independent contractor)
over the immediately preceding 36-month period.

 

5.            CHANGE
IN CONTROL.

 

(a)           “Change
in Control” shall mean any of the following:

 

(1)            “Change
in Control” shall mean (i) a change in the ownership of the Bank or Company, (ii) a change in the effective control
of the Bank or Company, or (iii) a change in the ownership of a substantial portion of the assets of the Bank or Company,
as described below.

 

(2)            A
change in the ownership of a corporation occurs on the date that any one person, or more than one person acting as a group (as
defined in Final Regulations section 1.409A-3(i)(5)(v)(B)), acquires ownership of stock of the Bank or Company that, together with
stock held by such person or group, constitutes more than 50 percent of the total fair market value or total voting power of the
stock of such corporation. For these purposes, a change in ownership will not be deemed to have occurred if no stock of the Bank
or Company is outstanding.

    4

     

    

 

(3)            A
change in the effective control of the Bank or Company occurs on the date that either (i) any one person, or more than one
person acting as a group (as defined in Final Regulations section 1.409A-3(i)(5)(vi)(D)) acquires (or has acquired during the 12-month
period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the Bank or Company possessing
30 percent or more of the total voting power of the stock of such Bank or Company, or (ii) a majority of the members of the
Bank’s or Company’s board of directors is replaced during any 12-month period by directors whose appointment or election
is not endorsed by a majority of the members of the Bank’s or Company’s board of directors prior to the date of the
appointment or election, provided that this subsection “(ii)” is inapplicable where a majority shareholder of the Bank
or Company is another corporation.

 

(4)            A
change in a substantial portion of the Bank’s or Company’s assets occurs on the date that any one person or more than
one person acting as a group (as defined in Final Regulations section 1.409A-3(i)(5)(vii)(C)) acquires (or has acquired during
the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the Bank or Company
that have a total gross fair market value equal to or more than 40 percent of the total gross fair market value of (i) all
of the assets of the Bank or Company, or (ii) the value of the assets being disposed of, either of which is determined without
regard to any liabilities associated with such assets. For all purposes hereunder, the definition of Change in Control shall be
construed to be consistent with the requirements of Final Regulations section 1.409A-3(i)(5), except to the extent that such final
regulations are superseded by subsequent guidance.

 

(b)           If
any of the events described in Section 5(a) hereof constituting a Change in Control shall have occurred or the Board
has determined that a Change in Control has occurred, Executive shall be entitled to the benefits provided in paragraphs (c) and
(d) of this Section 5 regardless of whether he has terminated employment in connection with the Change in Control.

 

(c)           Upon
the occurrence of a Change in Control, Executive, or, in the event of his death following a Change in Control, his beneficiary
or beneficiaries, or his estate, as the case may be, shall receive as severance pay or liquidated damages, or both, an amount equal
to three times the highest annual rate of Base Salary paid to Executive at any time under the Agreement or Prior Agreement, and
three times the highest rate of cash bonus awarded to Executive during the prior three years, which shall be paid in a lump sum
distribution on the effective date of the Change in Control. In addition, upon the occurrence of a termination of employment (which
must constitute a “Separation from Service” as defined in Code Section 409A and the Treasury Regulations promulgated
thereunder) on or after a Change in Control, the Bank will provide at the Bank’s expense, life insurance and non-taxable
medical and dental coverage substantially comparable, as reasonably or customarily available, to the coverage maintained by the
Bank for Executive prior to his termination, except to the extent such coverage may be changed in its application to all Bank employees.
Such coverage shall cease 36 months after the date of such termination of employment. Notwithstanding the foregoing, if applicable
law (including, but not limited to, laws prohibiting discriminating in favor of highly compensated employees), or, if participation
by the Executive is not permitted under the terms of the applicable health plans, or if providing such benefits would subject the
Bank to penalties, then the Bank shall pay the Executive a cash lump sum payment reasonably estimated to be equal to the cost of
such non-taxable life, medical and dental insurance, with such payment to be made by lump sum on the date of termination of employment,
or if later, the date on which the Bank determines that such insurance coverage (or the remainder of such insurance coverage) cannot
be provided for the foregoing reasons.

    5

     

    

 

(d)            If
the Executive is entitled to payments and benefits under this Section 5(c), the Executive will not be entitled to payments
and benefits under Section 4 of this Agreement.

 

(e)            Upon
the occurrence of a Change in Control, any non-vested stock options granted to Executive under any stock option plan or restricted
stock plan of the Bank will fully vest.

 

6.            TERMINATION
FOR DISABILITY OR DEATH.

 

(a)            Termination
of Executive’s employment based on “Disability” shall be construed to comply with Code section 409A and shall
be deemed to have occurred if (i) the Executive is unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in death, or last for a continuous period of not less
than 12 months; (ii) by reason of any medically determinable physical or mental impairment which can be expected to result
in death, or last for a continuous period of not less than 12 months, the Executive is receiving income replacement benefits for
a period of not less than three months under an accident and health plan covering employees of the Bank or Company; or (iii) the
Executive is determined to be totally disabled by the Social Security Administration. The provisions of paragraph 6(b) and
(c) shall apply upon the termination of the Executive’s employment for Disability.

 

(b)            The
Bank will pay Executive, as Disability pay, a bi-weekly payment equal to seventy-five percent (75%) of Executive’s bi-weekly
rate of Base Salary commencing on the date the Executive is determined to be Disabled. These Disability payments will be paid bi-weekly
and will end on the earlier (i) the date Executive returns to the full-time employment of the Bank in the same capacity as
he was employed prior to his termination for Disability; (ii) Executive’s full-time employment by another employer;
(iii) Executive attains the age of 65; or (iv) Executive’s death. The Disability pay shall be reduced by the amount,
if any, paid to Executive under any plan of the Bank or the Company providing disability benefits to Executive.

 

(c)            The
Bank will cause to be continued life insurance and non-taxable medical and dental coverage substantially comparable, as reasonable
or customarily available, to the coverage maintained by the Bank for Executive prior to his termination for Disability, except
to the extent such coverage may be changed in its application to all Bank employees or not available on an individual basis to
an employee termination for Disability. This coverage shall cease upon the earlier of (i) the date Executive returns to the
full-time employment of the Bank in the same capacity as he was employed prior to his termination for Disability; (ii) Executive’s
full-time employment by another employer; (iii) Executive attaining the age of 65; or (iv) Executive’s death.

 

(d)            In
the event of Executive’s death during the term of the Agreement, his estate, legal representatives or named beneficiaries
(as directed by executive in writing) shall be paid Executive’s Base Salary as defined in paragraph 3(a) at the rate
in effect at the time of Executive’s death for a period of one (1) year from the date of Executive’s death in
accordance with regular payroll practices, and the Bank will continue to provide medical, dental and other insurance benefits normally
provided for Executive’s family (in accordance with its customary co-pay percentages) for one year after Executive’s
death.

 

7.            TERMINATION
UPON RETIREMENT.

 

Termination of Executive’s
employment based on “Retirement” shall mean termination of Executive’s employment at age 65 or in accordance
with any retirement policy established by the Board with Executive’s consent with respect to him. Upon termination of Executive
based on Retirement, no amounts or benefits shall be due to the Executive under this Agreement, and Executive shall be entitled
to all benefits under any retirement plan of the Bank and other plans to which Executive is a party.

    6

     

    

 

8.            TERMINATION
FOR CAUSE.

 

The term “Termination
for Cause” shall mean termination because of Executive’s personal dishonesty, incompetence, willful misconduct, any
breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, willful violation of any law,
rule, or regulation (other than traffic violations or similar offenses) or final cease-and-desist order, or material breach of
any provision of this Agreement. Executive’s employment shall not be terminated in accordance with this paragraph for any
act or action or failure to act which is undertaken or omitted in accordance with a resolution of the Board or upon advice of the
Bank’s counsel. Notwithstanding the foregoing, Executive shall not be deemed to have been Terminated for Cause unless and
until there shall have been delivered to him a copy of a resolution duly adopted by the affirmative vote of not less than a majority
of the members of the Board at a meeting of the Board called and held for that purpose (after reasonable notice to Executive and
an opportunity for him, together with counsel, to be heard before the Board), finding that in the good faith opinion of the Board,
Executive was guilty of conduct justifying Termination for Cause and specifying the particulars thereof in detail. Executive shall
not have the right to receive compensation or other benefits for any period after Termination for Cause. Any non-vested stock options
granted to Executive under any stock option plan of the Bank, the Company or any subsidiary or affiliate thereof, shall become
null and void effective upon Executive’s receipt of Notice of Termination for Cause pursuant to Section 9 hereof, and
shall not be exercisable by Executive at any time subsequent to such Termination for Cause (unless it is determined in arbitration
that grounds for Termination for Cause did not exist, in which event all terms of the options as of the date of termination shall
apply, and any time periods for exercising such options shall commence from the date of resolution in arbitration).

 

9.            NOTICE.

 

Any purported termination
by the Bank for Cause shall be communicated by Notice of Termination to Executive. If, within 30 days after any Notice of Termination
for Cause is given, Executive notifies the Bank that a dispute exists concerning the termination, the parties shall promptly proceed
to arbitration. Notwithstanding the pendency of any such dispute, the Bank may discontinue to pay Executive compensation until
the dispute is finally resolved in accordance with this Agreement. If it is determined that Executive is entitled to compensation
and benefits under Section 4 or 5 of this Agreement, the payment of such compensation and benefits by the Bank shall commence
immediately following the date of resolution by arbitration, with interest due Executive on the cash amount that would have been
paid pending arbitration (at the prime rate as published in The Wall Street Journal from time to time).

 

(b)            Any
other purported termination by the Bank or by Executive shall be communicated by a Notice of Termination to the other party. If,
within 30 days after any Notice of Termination is given, the party receiving such Notice of Termination notifies the other party
that a dispute exists concerning the termination, the parties shall promptly proceed to arbitration as provided in Section 19
of this Agreement. Notwithstanding the pendency of any such dispute, the Bank shall continue to pay Executive his Base Salary,
and other compensation and benefits in effect when the notice giving rise to the dispute was given (except as to termination of
Executive for Cause). In the event the voluntary termination by Executive of his employment is disputed by the Bank, and if it
is determined in arbitration that Executive is not entitled to termination benefits pursuant to this Agreement, he shall return
all cash payments made to him pending resolution by arbitration, with interest thereon at the prime rate as published in The
Wall Street Journal from time to time if it is determined in arbitration that Executive’s voluntary termination of employment
was not taken in good faith and not in the reasonable belief that grounds existed for his voluntary termination.

    7

     

    

 

(c)            For
purposes of this Agreement, a “Notice of Termination” shall mean a written notice which shall indicate the specific
termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed
to provide a basis for termination of Executive’s employment under the provision so indicated and “Date of Termination”
shall mean the date of the Notice of termination.

 

10.          NON-COMPETITION
AND POST-TERMINATION OBLIGATIONS.

 

(a)            All
payments and benefits to Executive under this Agreement shall be subject to Executive’s compliance with paragraph (b), (c) and
(d) of this Section 10.

 

(b)            Executive
shall, upon reasonable notice, furnish such information and assistance to the Bank as may reasonably be required by the Bank in
connection with any litigation in which it or any of its subsidiaries or affiliates is, or may become, a party; provided, however,
that Executive shall not be required to provide information or assistance with respect to any litigation between the Executive
and the Bank or any of its subsidiaries or affiliates.

 

(c)            Executive
recognizes and acknowledges that the knowledge of the business activities and plans for business activities of the Bank, the Company
and affiliates thereof, as it may exist from time to time, is a valuable, special and unique asset of the business of the Employers.
Executive will not, during or after the term of his employment, disclose any knowledge of the past, present, planned or considered
business activities of the Employers or affiliates thereof to any person, film, corporation, or other entity for any reason or
purpose whatsoever (except for such disclosure as may be required to be provided to either the Office of the Comptroller of the
Currency or the Board of Governors of the Federal Reserve System (together, the “Regulator”), the Federal Deposit
Insurance Corporation (“FDIC”), or other regulatory agency with jurisdiction over the Bank, the Company, or
Executive). Notwithstanding the foregoing, Executive may disclose any knowledge of banking, financial and/or economic principles,
concepts or ideas which are not solely and exclusively derived from the business plans and activities of the Bank, and Executive
may disclose any information regarding the Bank which is otherwise publicly available or which Executive is otherwise legally required
to disclose. In the event of a breach or threatened breach by Executive of the provisions of this Section 10, the Bank and
the Company will be entitled to an injunction restraining Executive from disclosing, in whole or in part, his knowledge of the
past, present, planned or considered business activities of the Bank or the Company or any of their affiliates, or from rendering
any services to any person, firm, corporation, other entity to whom such knowledge, in whole or in part, has been disclosed or
is threatened to be disclosed. Nothing herein will be construed as prohibiting the Bank and the Company from pursuing any other
remedies available to them for such breach or threatened breach, including the recovery of damages from Executive.

 

(d)            Upon
any termination of Executive’s employment hereunder pursuant to Section 4 of this Agreement, Executive agrees not to
compete with the Bank and the Company and any of their subsidiaries for a period of one year following such termination in any
city, town or county in which the Bank has an office or has filed an application for regulatory approval to establish an office,
determined as of the effective date of such termination, except as agreed to pursuant to a resolution duly adopted by the Board.
Executive agrees that during such period and within said cities, towns and counties, Executive shall not work for or advise, consult
or otherwise serve with, directly or indirectly, any entity whose business materially competes with the depository, lending or
other business activities of the Bank. The parties hereto, recognizing that irreparable injury will result to the Bank, its business
and property in the event of Executive’s breach of this Section l0(d) agree that in the event of any such breach
by Executive, the Bank will be entitled, in addition to any other remedies and damages available, to an injunction to restrain
the violation hereof by Executive, Executive’s partners, agents, servants, employers, employees and all persons acting for
or with Executive. Executive represents and admits that Executive’s experience and capabilities are such that Executive can
obtain employment in a business engaged in other lines and/or of a different nature than the Bank, and that the enforcement of
a remedy by way of injunction will not prevent Executive from earning a livelihood. Nothing herein will be construed as prohibiting
the Bank and the Company from pursuing any other remedies available to them for such breach or threatened breach, including the
recovery of damages from Executive.

    8

     

    

 

11.          SOURCE
OF PAYMENTS.

 

All payments provided
in this Agreement shall be timely paid in cash or check from the general funds of the Bank. The Company, however, guarantees payment
and provision of all amounts and benefits due hereunder to Executive, and if such amounts and benefits due from the Bank are not
timely paid or provided by the Bank, such amounts and benefits shall be paid or provided by the Company.

 

12.          EFFECT
ON PRIOR AGREEMENTS AND EXISTING BENEFITS PLANS.

 

This Agreement contains
the entire understanding between the parties hereto and supersedes any prior employment agreement between the Bank or any predecessor
of the Bank and Executive, including the Prior Agreement, except that this Agreement shall not affect or operate to reduce any
benefit or compensation inuring to Executive of a kind elsewhere provided. No provision of this Agreement shall be interpreted
to mean that Executive is subject to receiving fewer benefits than those available to him without reference to this Agreement.

 

13.          NO
ATTACHMENT; BINDING ON SUCCESSORS.

 

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

 

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

 

14.          MODIFICATION
AND WAIVER.

 

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

 

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

 

15.          REQUIRED
PROVISIONS.

 

(a)            The
Bank may terminate Executive’s employment at any time, but any termination by the Bank’s Board other than Termination
for Cause as defined in Section 8 hereof shall not prejudice Executive’s right to compensation or other benefits under
this Agreement. Executive shall have no right to receive compensation or other benefits for any period after Termination for Cause.

    9

     

    

 

(b)            If
Executive is suspended from office and/or temporarily prohibited from participating in the conduct of the Bank’s affairs
by a notice served under Section 8(e)(3) [12 USC §1818(e)(3)] or 8(g)(l) [12 USC §l 818(g)(l )] of the
Federal Deposit Insurance Act, the Bank’s obligations under this Agreement shall be suspended as of the date of service,
unless stayed by appropriate proceedings. If the charges in the notice are dismissed, the Bank may in its discretion (i) pay
Executive all or part of the compensation withheld while its contract obligations were suspended and (ii) reinstate (in whole
or in part) any of its obligations which were suspended.

 

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

 

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

 

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

 

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

 

16.          SEVERABILITY.

 

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

 

17.          HEADINGS
FOR REFERENCE ONLY.

 

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

 

18.          GOVERNING
LAW.

 

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

    10

     

    

 

19.          ARBITRATION.

  

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

 

20.          PAYMENT
OF LEGAL FEES.

 

All reasonable legal
fees paid or incurred by Executive pursuant to any dispute or question of interpretation relating to this Agreement shall be paid
or reimbursed by the Bank, provided that the dispute or interpretation has been settled by Executive and the Bank or resolved in
Executive’s favor, and that such reimbursement shall occur as soon as practicable but not later than two and one-half months
after the dispute is settled or resolved in Executive’s favor.

 

21.          INDEMNIFICATION.

 

The Bank shall provide
Executive (including his heirs, executors and administrators) with coverage under a standard directors’ and officers’
liability insurance policy at its expense, and shall indemnify Executive (and his heirs, executors and administrators) for the
term of the Agreement and for a period of six years thereafter to the fullest extent permitted under applicable law against all
expenses and liabilities reasonably incurred by him in connection with or arising out of any action, suit or proceeding in which
he may be involved by reason of his having been a director or officer of the Bank (whether or not he continues to be a director
or officer at the time of incurring such expenses or liabilities), such expenses and liabilities to include, but not be limited
to, judgments, court costs and attorneys’ fees and the cost of reasonable settlements (such settlements must be approved
by the Board), provided, however, the Bank shall not be required to indemnify or reimburse Executive for legal expenses or liabilities
incurred in connection with an action, suit or proceeding arising from any illegal or fraudulent act committed by Executive. Any
such indemnification shall be made consistent with Section 18(k) of the Federal Deposit Insurance Act, 12 U.S.C. §1828(k),
and the regulations issued thereunder in 12 C.F.R. Part 359.

 

    11

     

    

 

22.          NOTICE.

 

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

 

	To the Company:	
        Generations
        Bancorp NY, Inc.

        20 East Bayard St

        Seneca Falls, New York
        13148

	 	 
	
        To the Bank:

         
	
        Generations Bank

        20 East Bayard St

        Seneca Falls, New York
        13148

	 	 
	
        To Executive:

         
	
        Menzo D. Case

        At the address last appearing
        on

        the personnel records of
        the Bank

        

 

23.         EFFECTIVENESS
AND TERMINATION OF PRIOR AGREEMENT.

 

(a)            Effectiveness.
Notwithstanding anything to the contrary contained herein, this Agreement shall be subject to the consummation of the
Second-Step Conversion, and shall become effective as of the date of the consummation of the Second-Step Conversion and
related Offering. In the event the Second-Step Conversion and/or Offering does not occur for any reason, or in the event
Executive is not an employee of the Bank as of the Effective Date, this Agreement shall automatically terminate and become
null and void.

 

(b)            Termination
of Original Agreement. The Original Agreement shall remain in full force and effect until the Effective Date. Thereafter,
on the Effective Date, Executive and the Bank hereby agree that the Original Agreement shall be terminated without any further
action of any of the parties thereto. Executive hereby acknowledges and agrees that Executive has no contractual rights to any
payments or benefits under the Original Agreement as of the Effective Date.

    12

     

    

  

SIGNATURES

 

IN WITNESS WHEREOF,
the Company and the Bank have caused this Agreement to be executed by their duly authorized representatives, and Executive has
signed this Agreement, on the day and date first above written. The Company has become a party to this Agreement for the sole purpose
of binding itself to the duties and obligations set forth in Section 11 hereof.

 

		 	GENERATIONS BANCORP NY, INC.
	 	 	 
	 	 	 
	August 31, 2020	 	 	By:	/s/ James Tarantino
	Date	 	 
	 	 	 
		 	GENERATIONS BANK 
	 	 	 
	 	 	 
	August 31, 2020	 	 	By:	/s/ James Tarantino
	Date	 	 
	 	 	 
		 	EXECUTIVE 
	 	 	 
	 	 	 
	August 31, 2020	 	 	/s/ Menzo D. Case
	Date	 	Menzo D. Case
		 	President and Chief Executive Officer

    13

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