Document:

Exhibit 10.5

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [*****], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND IS THE TYPE
THAT THE REGISTRANT TREATS AS PRIVATE AND CONFIDENTIAL

 

SERVICES AGREEMENT

 

THIS SERVICES AGREEMENT
(the “Agreement”) made and entered into as of the 10th day of January, 2022, by and among Pedro Arnt
(“Arnt”), with an email of [*****], and Aleph Group, Inc, a Cayman
company (“Aleph”), with an email of [*****]
(and copy to [*****]  ).

 

W I T N E S S E T H:

 

WHEREAS, Aleph
wishes to engage the services of Arnt as Director of its Board of Directors and Arnt desires to provide such services, upon the terms
and conditions set forth in this Agreement.

 

NOW, THEREFORE, in
consideration of the foregoing and the mutual covenants hereinafter contained, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.            RECITALS.
The above recitals are true and correct and incorporated herein by this reference.

 

2.            TERM;
DUTIES/RESPONSIBILITIES.

 

(a)            From
January 10, 2022 through January 10, 2026 (the “Term”), Arnt shall be member of the Board of Directors and Audit
Committee of Aleph, at which time the Term shall end unless the parties extend or renew this Agreement prior to the expiration of the
Term, subject to earlier termination under Paragraph 6 hereof; provided however, the Term may be extended, in which case the parties
shall sign an amendment to this Agreement or a new agreement.

 

(b)            Arnt
agrees that throughout the Term hereof he will devote his skill and attention to his duties hereunder, and that he will faithfully and
to the best of his ability perform his duties hereunder and use his best efforts to promote the interests of Aleph and its group of companies.

 

(c)            Arnt
shall not serve in any officer position in Aleph or in any director or officer position of Aleph’s subsidiaries unless he shall be specifically
elected to any such position. Arnt may not bind Aleph or execute any documentation on behalf of Aleph. Arnt shall be entitled to reimbursement
of reasonable business expenses only if pre-approved in writing by Aleph CEO, [*****].

 

3.            ARNT
PARTICIPATION. As compensation for the above-referenced services, Arnt shall receive the following:

 

(a)            Arnt
shall receive the following equity participation in Aleph:

 

(i)            Equity
interest in the issued and outstanding capital stock of Aleph equivalent to $1,500,000.00 (the “Equity Interest”), subject
to clause (ii) below. Arnt shall not be entitled to any equity interest in any Aleph subsidiary. Following Arnt’s receipt of
his Equity Interest in accordance with clause (ii) below, Arnt’s Equity Interest shall thereupon be subject to dilution along
with the other shareholders of Aleph. Arnt’s Equity Interest percentage and resulting restricted stock shall be subject to possible
change as set forth in this clause (a) or in the Shareholders’ Agreement (as defined below). Arnt shall execute a joinder to
the Shareholders’ Agreement as a pre-condition to receiving or having any interest in any capital stock of Aleph.

 

     

     

    

 

(ii)           Arnt’s
Equity Interest shall be in the form of restricted capital stock of Aleph (as fully paid and non-assessable) earned, vested, and payable
to him in four installments as follows: (1) one-quarter of the Equity Interest (being equity of Aleph equivalent to $375,000 at
a Company Valuation of $2.5 billion, to be represented by newly issued restricted capital shares of Aleph) on January 10, 2023,
(2) one-quarter of the Equity Interest (being equity of Aleph equivalent to $375,000 at a Company Valuation of $2.5 billion, to
be represented by newly issued restricted capital shares of Aleph) on January 10, 2024, (3) one-quarter of the Equity Interest
(being equity of Aleph equivalent to $375,000 at a Company Valuation of $2.5 billion, to be represented by newly issued restricted capital
shares of Aleph) on January 10, 2025, and (4) one-quarter of the Equity Interest (being equity of Aleph equivalent to $375,000
at a Company Valuation of $2.5 billion, to be represented by newly issued restricted capital shares of Aleph) on January 10, 2026.
Arnt shall be entitled to each restricted stock installment on each of the above-indicated dates unless the Term ends prior to January 10,
2026, (y) by Arnt terminating this Agreement pursuant to Paragraph 6(c)(iii), then he shall not be entitled to any restricted stock
of Aleph still to be due to him (but he, or his estate, shall retain any prior restricted stock already vested and given to him under
clauses (1), (2) and/or (3) above, if applicable), or (z) by Aleph terminating this Agreement for reasons other than Arnt’s
breach, as defined in Paragraph 6(a), in which case Arnt shall be entitled to restricted capital stock as follows: Arnt shall receive
a pro-rata percentage (based on the number of months of service provided prior to the termination date). Any restricted stock not fully
vested, issued, and paid to Arnt under this clause (ii) shall lapse and be null and void. All restricted capital stock to be issued
to Arnt shall be free and clear of encumbrances and liens, but subject to the Shareholders’ Agreement of Aleph, as may be amended from
time to time (the “Shareholders’ Agreement”).

 

(iii)          The
shareholders of Aleph shall appropriately as to be agreed dilute their equity interests on a pro-rata basis at the relevant time(s) based
on the calculations set forth in clause (ii) above to accommodate and recognize Arnt’s vested and issued Equity Interest.

 

(iv)          If
Arnt is subject to federal income tax on his restricted capital stock vesting and being issued to him based on either or both of the
2 above installment dates under clause (ii)(1), (2), (3) and/or (4) above, then upon Arnt presenting supporting documentation
to Aleph of his federal tax liability solely relating to each such vesting and issuance, Aleph, if satisfied with such documentation,
shall cause itself (or any Aleph subsidiary), as applicable, to loan him the amount of such federal tax liability and his restricted
stock shall be pledged to or as directed by Aleph as security for the repayment, in accordance with such loan documentation as shall
be agreed to in advance between the parties at the relevant time(s). The loan(s) shall accrue interest at 2% per annum from the
date(s) of any such advance(s) until such loan proceeds shall be paid in full, and such loan amount(s) shall be repaid
at any time from Arnt from any dividends he may receive, but no later than full repayment with interest by July 1, 2026 (the “Loan
Extension Date”) by him personally, if there is no earlier event in which Arnt receives dividend payment(s) subject to earlier
termination and accelerated repayment of the loan due to any default or termination under any provision of Paragraph 6. In the event
Arnt does not repay the loan in full by the Loan Extension Date pursuant to the loan documentation then he shall lose a number of Aleph
shares for the total loan amount, based on the LTM EBITDA for year 4 (ending at January 10, 2026) times 11 as the enterprise value,
and any remaining Aleph shares, if applicable, shall be released to him but still subject the Shareholders’ Agreement.

 

    	 	2	 

     

    

 

(b)            There
shall be no employer-employee, joint venture, or partnership relationship between the parties by virtue of this Agreement. Arnt, as a
non-employee, shall not be entitled to salary compensation or other payments, nor to participate in any benefits and benefit programs
or plans which Aleph may establish from time to time during the Term hereof.

 

(c)            This
Paragraph 3 shall survive any expiration or earlier termination of this Agreement.

 

4.            CONFIDENTIAL
INFORMATION. Arnt understands and agrees that all proprietary information relating to Aleph (including its subsidiaries
and affiliates), shall be treated by Arnt as confidential (the “Confidential Information”); therefore, Arnt has entered
into and executed the Non-Disclosure and Confidentiality Agreement with Aleph (the “NDA”) attached hereto as Exhibit “A”
and made a part hereof by this reference as if set forth verbatim herein. The parties agree that the provisions of the NDA shall
apply to Arnt with Aleph thereunder. Any breach by Arnt of the covenants in this Paragraph 4 or the NDA will cause irreparable
injury and incalculable damage to Aleph, and Aleph shall be entitled to apply for injunctive relief for same in any court of
competent jurisdiction in addition to all other remedies which may be available to it on a cumulative basis at law and/or in equity.
This Paragraph 4 shall survive any expiration or earlier termination of this Agreement.

 

5.            NOTICES.
Any notice or other communication required or desired to be given shall be in writing and shall be sent by certified mail,
return receipt requested; and each such notice shall be deemed given upon deposit in any depository therefor maintained by the
United States. Notice may also be given by hand delivery/courier delivery, by email, or by facsimile, to the appropriate addresses
for Aleph and Arnt as set forth at the outset of this Agreement or on file with the parties, which any party may change as to such
party upon 10 days’ prior notice to the other party. Neither party shall frustrate receipt of any notice.

 

6.            BREACH,
DEFAULT, AND TERMINATION.

 

(a)            Any
of the following events shall constitute a breach of this Agreement by either party:

 

(i)            An
affirmative act of insolvency or the filing of a petition under any bankruptcy reorganization, insolvency, or any law for the relief
of, or relating to debt, or the appointment of a receiver or trustee to take possession of any property of such party; or

 

(ii)           A
breach of any representation or warranty, or non-fulfillment of any covenant or obligation by such party.

 

(b)            Upon
any breach by either party of this Agreement, the non-breaching party shall give the breaching party notice of such breach pursuant to
the notice provisions of Paragraph 5 hereof and the non-breaching party shall have five business days once notice has been so given thereunder
to cure such breach and if not cured (or be diligently attempting such cure) within such period of time, the non-breaching party shall
have the right to declare this Agreement in default and immediately terminate this Agreement upon notice to the breaching party pursuant
to said notice provisions. Upon such default, the non-breaching party shall be entitled to pursue whatever remedies may be available
to it/him on a cumulative basis at law and/or in equity.

 

    	 	3	 

     

    

 

(c)             This
Agreement may be terminated: (i) upon the death or permanent disability of Arnt, (ii) upon mutual agreement of the
parties, (iii) by either party without cause upon 30 days’ prior written notice to the other party, or (iv) upon default
by either party of this Agreement pursuant to Paragraph 6(b). Upon any termination, all sums or other interests, which shall
otherwise be due to either party shall be promptly paid, and all Confidential Information shall be returned to or as directed by
Aleph.

 

7.            INDEMNIFICATION. Aleph shall indemnify Arnt (whether through its insurance or otherwise) in connection with him acting as
Director of Aleph or in any other capacity under this Agreement to be effective as of January 10, 2022 pursuant to the
Indemnification Agreement attached hereto as Exhibit “B” and/or the D&O Insurance Policy attached hereto
as Exhibit “C”, as applicable, and made a part hereof by this reference as if set forth verbatim herein. This
Paragraph 7 shall survive any expiration or earlier termination of this Agreement.

 

8.            MISCELLANEOUS
PROVISIONS. This Agreement embodies the entire understanding and agreement of the parties hereto in relation to the
subject matter hereof, and no promise, condition, representation, or warranty, express or implied, not herein set forth shall bind
any party hereto. None of the terms and conditions of this Agreement may be changed, modified, waived, or cancelled orally or
otherwise except in a writing signed by the parties hereto, specifying such change, modification, waiver, or cancellation. A waiver
at any time of compliance with any of the terms or conditions of this Agreement shall not be considered a modification,
cancellation, or waiver of such terms and conditions of any preceding or succeeding breach thereof unless expressly so stated. This
Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, personal
representatives, legal representatives, successors, and permitted assigns. This Agreement shall not be assigned by Arnt as it is
personal between him and Aleph but may be assigned by Aleph to an affiliate if applicable. There shall be no third-party
beneficiaries to this Agreement. The invalidity or unenforceability of any particular provision of this Agreement or portions
thereof shall not affect the other provisions or portions thereof, and this Agreement shall be construed in all respects as if any
such invalid or unenforceable provisions or portions thereof were omitted. This Agreement may be executed in multiple counterparts,
each of which shall constitute an original and all of which shall constitute one and the same agreement. This Agreement shall be
governed by and construed under the internal laws of the State of Florida without regard to any conflicts of law principles thereof.
In the event of a dispute arising out of, or any action is brought to enforce, this Agreement which shall result in litigation, the
prevailing party in such litigation shall be entitled to promptly receive reimbursement of its or his reasonable legal fees, costs,
and expenses from the other party, at trial and through any applicable appeal, and venue for such litigation shall be the state or
federal courts located in Miami-Dade County, Florida, which by this reference the parties hereto irrevocably and unconditionally
agree to submit to such venue. Each party, at no additional cost to it or him, shall, upon the reasonable request of the other
party, execute and deliver or cause to be executed and delivered such agreements, documents, certificates, and instruments and
perform such other acts as may be necessary or desirable in order to fully effectuate the purposes, terms and conditions of this
Agreement, whether at or after the date hereof. Each party hereto has the authority and capacity to enter into, deliver, and perform
under this Agreement. All headings in this Agreement are only for convenience and do not interpret this Agreement. Both parties
shall be deemed to have drafted this Agreement and any ambiguities shall not be construed against either party as a drafter. This
Paragraph 8, and any other provisions hereof which by their nature should survive, shall survive expiration or any earlier
termination of this Agreement.

 

[Signature Page Next Following]

 

    	 	4	 

     

    

 

IN WITNESS WHEREOF, the parties
have caused this Agreement to be duly executed as of the day and year first above written.

 

	 	Aleph Group, Inc
	 	 
	 	By: 	[*****]
	 	[*****], CEO
 
	 	[*****]
	 	[*****]

 

    	 	5a101amalgamatedbank-sean

    EMPLOYMENT AGREEMENT   This EMPLOYMENT AGREEMENT (“Agreement”) dated August 24, 2022, is entered  into by and between Amalgamated Financial Corp. (the “Company”) and Sean Searby  (the “Executive”) (each a “Party” and together, the “Parties”). References to the Company in this  Agreement also include Amalgamated Bank (the “Bank”) and all other subsidiaries of the  Company and of the Bank.  RECITALS  WHEREAS, the Company desires to employ the Executive as EVP, Chief Operations  Officer of Amalgamated Financial Corp. and of the Bank, and the Parties wish to establish the  terms of such employment effective August 24, 2022, or such earlier date as to which the Parties  may mutually agree (the “Effective Date”).  AGREEMENT  NOW, THEREFORE, in consideration of the mutual promises and conditions herein set  forth, the Parties agree as follows:   1. Employment and Acceptance. The Company shall agree to continue to employ the  Executive, and the Executive accepts such continued employment, subject to the terms of this  Agreement. By executing this Agreement, Executive acknowledges and agrees that he is an “at- will” employee, and accordingly that his employment may be terminated at any time, with or  without cause, and with or without reason (subject to the termination provisions of Section 5  below).    2. Term. Subject to earlier termination pursuant to Section 5 of this Agreement, the  term of this Agreement and the period of Executive’s employment hereunder shall begin as of the  Effective Date and shall continue for thirty-six (36) full calendar months thereafter (the “Term,”  which shall include any periods covered by renewals hereunder). Commencing on January 1, 2023,  and continuing on January 1 of each year thereafter (the “Anniversary Date”), this Agreement shall  renew for an additional twelve months such that the remaining term shall be thirty-six months (36)  months, unless written notice of nonrenewal is provided to Executive at least sixty (60) days prior  to any such Anniversary Date, and such end date, as it may prior thereto be extended by mutual  written agreement of the Parties, being the “Term Date”. As used in this Agreement,  the “Term” shall refer to the period beginning on the Effective Date and ending on the Term Date,  or, if earlier, on the date the Executive’s employment terminates in accordance with Section 5  below.  3. Title and Duties.    3.1 Title.  The Executive shall serve in the capacity of EVP, Chief Operations  Officer of Amalgamated Financial Corp. and of the Bank and shall report directly to the President  and Chief Executive Officer of Amalgamated Financial Corp. and of the Bank (the “CEO”). The  Executive shall be classified as an employee exempt from overtime pay pursuant to the executive  exemption under federal and state overtime laws.    

 

    3.2 Duties.  The Executive shall have such authority and responsibilities  and shall perform such executive duties customarily performed by the EVP, Chief Operations  Officer of a commercial bank and shall have such other powers and duties as may from time to  time be prescribed by the CEO, provided that such duties are consistent with the Executive’s  position or other positions that he may hold from time to time. Without limiting the generality of  the foregoing, Executive shall be charged with the administration of the operations of the  Company, including general supervision of the policies of the Company and general and active  management of the business of the Company, in accordance with Executive’s accountability  statement. The Executive agrees that during the Term he shall devote his entire working time to  the performance of his duties under this Agreement and shall not work for anyone else; provided,  however, that the Company acknowledges that the Executive may serve on such corporate, civic  or charitable boards or committees as have been or in the future are disclosed to, and not objected  to by, the CEO, such approval not to be unreasonably withheld, and manage the Executive’s  personal investments, so long as any such activities do not, individually or in the aggregate,  materially interfere with the performance of the Executive’s duties hereunder.  3.3 Location. The Executive’s principal place of work shall be at the  Company’s principal office located in New York, New York, subject to reasonable travel  requirements on behalf of the Company.  4. Compensation and Benefits.  4.1 Base Salary. During the Term, the Company shall pay the Executive a base  salary (“Base Salary”) initially at an annual rate equal to U.S. $342,000, to be paid in accordance  with the Company’s payroll practice for all employees, which payroll practices the Company  reserves the right to modify at any time. During the Term, the Company may, at the discretion of  the Board, at any time and from time to time prospectively (i) increase the Executive’s Base Salary,  or (ii) decrease the Executive’s Base Salary as part of an across-the-board percentage  reduction, provided such reduction shall be pari passu with the CEO.     4.2  Bonuses and Incentive Compensation. During the Term, subject to Section  7.15 of this Agreement, the Executive shall be eligible for incentive compensation to be paid to  him by the Company as follows:  (a) The Executive shall be eligible to receive an annual bonus (“Annual  Bonus”) for each fiscal year of the Company during the Term, targeted at forty percent (40%) of  Base Salary (as determined on July 1 of each fiscal year in accordance with Section 4.1)  (the “Annual Bonus Target”), based on the achievement of multiple specific annual quantitative  and qualitative performance metrics established by the CEO, in consultation with the Executive,  for such fiscal year, and subject to the terms and conditions of the Company’s annual incentive  plan, as it may be amended from time to time.  (b) The Executive also shall be entitled to incentive compensation  pursuant to the Company’s equity incentive plans (each an “Equity Plan”) adopted by the Board  of Directors of Amalgamated Financial Corp. (the “Board”) for each fiscal year of the Term. The  aggregate potential value of any annual Equity Plan awards granted to the Executive shall be an  amount equal to forty percent (40%) of Base Salary in effect at the commencement of the  

 

    applicable fiscal year (the “Target Grant”). However, at the discretion of the Compensation  Committee, the Target Grant for any fiscal year may be increased. Notwithstanding anything to  the contrary set forth herein, the Executive’s participation in any such Equity Plan shall be  governed by the terms of such plan, specifically including its vesting and exercise  provisions, provided that such terms of the Executive’s awards shall be not less favorable to his  than those granted at such time to the Company’s other executive officers.  (c) On the Effective Date, the Executive shall be eligible to, and subject  to the terms and conditions herein, shall receive a retention award of Restricted Stock Units, in the  form attached hereto as Exhibit A, with respect to shares of the Company’s common stock that  have a value on the Effective Date equal to U.S. $342,000.00 (based upon the closing price on the  immediately preceding day).  4.3 Participation in Employee Benefit Plans. During the Term, the  Executive shall be entitled to participate in all of the applicable employee benefit plans and  perquisite programs of the Company generally made available to other senior executives of  Amalgamated Financial Corp., on the same terms as such other senior executives. The Company  may at any time or from time to time amend, modify, suspend or terminate any employee benefit  plan, program or arrangement for any reason without the Executive’s consent if such amendment,  modification, suspension or termination is consistent with the amendment, modification,  suspension or termination for other active senior executives of the Company.  4.4 Expense Reimbursement. During the Term, the Executive shall be  entitled to receive reimbursement for all appropriate business expenses incurred by his in  connection with his duties under this Agreement, in accordance with the policies of the Company  as in effect from time to time, and subject to the Company’s requirements with respect to reporting  and documentation of such expenses.    5. Termination of Employment.    5.1 Termination upon the Term Date by Executive’s Non-Renewal, By the  Company for Cause, by the Executive without Good Reason, or Due to Executive’s Death or  Disability. If the Executive’s employment terminates upon the Term Date, as applicable, due to  the Executive’s election of non-renewal or if during the Term: (i) the Company terminates the  Executive’s employment with the Company for Cause upon written notice; (ii) the Executive  terminates employment without Good Reason; (iii) the Company terminates the Executive’s  employment with the Company by reason of the Executive’s Disability upon written notice, or (iv)  the Executive’s employment terminates upon the Executive’s death, the Executive (or following  the Executive’s death, his estate) shall be entitled to receive the following:  (a) the Executive’s accrued but unpaid Base Salary through the date of  termination and any employee benefits, including accrued but unused vacation pay, that the  Executive is entitled to receive pursuant to the employee benefit plans of the Company (other than  any severance plans) in accordance with the terms of such employee benefit plans; and  

 

    (b) expenses reimbursable under Section 4.4 above incurred but not yet  reimbursed to the Executive to the date of termination (the items under Sections 5.1(a) and 5.1(b)  collectively, the “Accrued Benefits”).  (c) The Executive may only terminate his employment without Good  Reason by providing forty-five (45) days’ advance written notice (which notice period the  Company may shorten in its sole discretion and which shall not be deemed a termination without  Cause).  (d) As used in this Agreement, the following terms shall have the  meanings set forth below:  (1) “Cause” means, (A) the Executive’s conviction of a felony or any  crime involving dishonesty or theft; (B) the Executive’s conduct in connection with his  employment duties or responsibilities that is fraudulent, unlawful or grossly negligent; (C) the  Executive’s misconduct; (D) the Executive’s contravention of specific lawful directions of the  Board related to a material duty or responsibility; (E) the Executive’s material breach of the  Executive’s obligations under this Agreement; (F) any acts of dishonesty by the Executive  resulting or intending to result in personal gain or enrichment at the expense of the Company; or  (G) the Executive’s failure to comply with a material policy of the Company, including, but not  limited to, any policies prohibiting harassment or discrimination and any Code of Business  Conduct and Ethics, as in effect from time to time; provided, that the Company shall have ninety  (90) days from the occurrence of the event that constitutes Cause to provide notice to the Executive  that the Company intends to terminate the Executive’s employment for Cause. In the event the  Company determines facts exist to justify a Cause termination, the Executive shall be given at least  fifteen (15) days’ notice of such determination and a written explanation of the facts used by the  Board to justify Cause. The Executive shall then be given ten (10) days to cure same, if there is a  reasonably feasible way to cure, to the reasonable determination of the Board prior to any  termination.    (2) “Change in Control” means the occurrence of any one or more of  the following events:  (i) the consummation of a transaction, or a series of  related transactions undertaken with a common purpose, in which any individual, entity or group  (a “Person”), acquires ownership of stock of the Company that, together with stock held by such  Person, constitutes more than fifty percent (50%) of the total fair market value or total voting  power of the Company’s stock; or  (ii) a sale, lease, exchange or other transfer, in one  transaction or a series of related transactions undertaken with a common purpose, of the  Company’s assets having a total gross fair market value of forty percent (40%) or more of the total  gross fair market value of all of the assets of the Company. For this purpose, “gross fair market  value” means the value of the assets of the Company, or the value of the assets being disposed of,  determined without regard to any liabilities associated with such assets.  

 

    For purposes of this Agreement, a Change In Control will not include (1) a transaction in  which the holders of the outstanding voting securities of the Company immediately prior to the  transaction hold at least fifty percent (50%) of the outstanding voting securities of the successor  Company immediately after the transaction; (2) any transaction or series of transactions approved  by the Board principally for bona fide equity financing purposes in which cash is received by the  Company or any successor thereto or indebtedness of the Company is cancelled or converted or a  combination thereof; (3) a sale, lease, exchange or other transfer of all or substantially all of the  Company’s assets to a majority-owned Subsidiary; or (4) a transaction undertaken for the principal  purpose of restructuring the capital of the Company, including, but not limited to, reincorporating  the Company in a different jurisdiction.  Notwithstanding the foregoing, a “Change in Control” will only be deemed to occur if the  consummation of the corporate transaction meets the requirements of Treas. Reg. Section 1.409A- 3(a)(5).  (3) “Disability” means that, as a result of a permanent physical or  mental injury or illness, the Executive has been unable to perform the essential functions of his  job, with or without reasonable accommodation, for (a) 60 consecutive days or (b) a period of 150  days in any 12-month period. The Company shall make its determination in a reasonable manner  and shall take into consideration the opinion of Executive’s personal physician, if reasonably  available, and any other physician deemed appropriate by the Company, but such determination  by the Company shall be final and binding on the parties hereto.  This provision shall be interpreted  and applied in a manner consistent with all applicable laws, including laws regarding workers’  compensation, disability, and family and medical leave laws.  (4)   “Good Reason” means, without the Executive’s written consent:  (A) a reduction in the Executive’s Base Salary; (B) subject to Section 5.3 of this Agreement, a  substantial diminution in the Executive’s title, duties or responsibilities; (C) the Company’s breach  of any material covenant or obligation under this Agreement; or (D) relocation of the Executive’s  principal work location to a location outside of New York county; provided that the Company shall  have thirty (30) days after receipt of notice from the Executive in writing specifying the deficiency  to cure the deficiency that would result in Good Reason, to the extent curable; provided,  further, that the Executive delivered such written notice within 90 days after the first occurrence  of the action alleged to be Good Reason; and provided, further, that, if the Company has not cured  the deficiency before expiration of such 30-day period, Executive shall have resigned within ninety  (90) days thereafter.  5.2 By the Company Without Cause, by the Company’s Non-renewal of the  Term, or by the Executive with Good Reason. If at any time during the Term, the Company  terminates the Executive’s employment without Cause other than due to Disability, the Executive’s  employment terminates on the Term Date due to the Company non-renewal of the then-current  Term, or the Executive terminates his employment upon notice (except as described in the  definition of Good Reason) with Good Reason, other than following the occurrence of an event  that could reasonably be expected to result in a termination of his employment by the Company  for Cause, the Executive shall be entitled to receive:    (a) the Accrued Benefits; and  

 

    (b) beginning on the 60th day after such termination of employment, but  only if the Executive has executed and not revoked within the revocation period a valid release  agreement in a form reasonably acceptable to the Company (but which shall not release any right  to indemnification nor impose any further restrictive covenants), a severance payment in an  amount equal to the sum of (i) twelve (12) months of the Executive’s Base Salary in effect on the  date of such termination, (ii) an amount equal to the Annual Target Bonus in effect for the fiscal  year in which the date of such termination occurs, and (iii) an amount equal to the Annual Target  Bonus in effect for the fiscal year in which Executive’s employment terminates, pro-rated based  on the portion of such fiscal year prior to his termination date during which the Executive was  employed, which sum shall be payable in equal monthly installments for a period of twelve (12)  months; provided that, if (A) such termination occurs within twelve (12) months following a  Change in Control or (B) the Company terminates the Executive’s employment without Cause  other than due to Disability within ninety (90) days’ prior to a Change in Control and the Executive  reasonably demonstrates that such termination was at the request of the eventual acquirer in  connection with such Change in Control, such severance payment shall be in an amount equal to  the sum of (i) twenty-one (21) months of the Executive’s Base Salary in effect on the date of such  termination, and (ii) an amount equal to one hundred seventy-five percent (175%) of the Annual  Target Bonus in effect for the fiscal year in which the date of such termination occurs, payable in  equal monthly installments for a period of twenty-one (21) months. If not yet paid, Executive will  also receive in full any prior year’s Annual Bonus not yet paid as of the termination date, payable  on the normal payment date provided under the plan and paid entirely in cash. Payments that would  otherwise have been owed to the Executive prior to the 60th day after termination of employment  shall be made to the Executive on the 60th day after such termination of employment.  (c) In addition, if the Executive satisfies the release condition set forth  in the preceding paragraph, then from the date of his termination of employment until twelve (12)  months following the end of the month in which such termination occurs, the Company shall pay  the premiums for any “COBRA” continuation health coverage for which the Executive is eligible  during such 12-month period under Section 4980B of the Internal Revenue Code of 1986, as  amended (the “Code”) (or any successor provision); provided, however, COBRA payments that  would otherwise have been paid on behalf of the Executive prior to the 60th day after termination  of employment shall be paid by the Executive and reimbursed by the Company to the Executive  on the 60th day after such termination of employment.  5.3 Duties prior to Termination. Following a notice of termination of the  Executive’s employment hereunder from either Party and prior to the applicable date of  termination, the Company may (a) require the Executive to continue to perform the Executive’s  duties hereunder on the Company’s behalf, (b) limit or impose reasonable restrictions on the  Executive’s activities as it deems necessary, or (c) modify the Executive’s authorities,  responsibilities and/or duties (including as provided in Section 3.2 of this Agreement) without such  action constituting a violation of this Agreement or Good Reason.    5.4 Continued Employment Beyond the Expiration of the Term. Unless  the Parties otherwise agree in writing and except for those Accrued Benefits or severance  obligations owed under Section 5.1 or 5.2 above, in connection with any termination due to non- renewal, continuation of the Executive’s employment with the Company beyond the expiration of  the Term shall only occur if mutually agreed to by the Parties in writing, in which event his  

 

    employment shall be deemed an employment at-will and shall not be deemed to extend any of the  provisions of this Agreement and the Executive’s employment may thereafter be terminated at- will by either the Executive or the Company; provided that any provisions of this Agreement that  contemplate performance following the expiration of the Term shall survive not only any  termination of this Agreement but also the termination of the Executive’s employment hereunder,  including, without limitation, Sections 6, 7 and 8.12 of this Agreement.  5.5 Removal from Boards and Positions. If Executive’s employment terminates  for any reason, the Executive shall be deemed to resign (a) if a member, from the Board or boards  of directors to which he has been appointed or nominated by or on behalf of the Company and (b)  from any position with the Company and its subsidiaries and affiliates or any fiduciary positions  that he holds as a result thereof.  5.6 Remedies.  The rights and remedies set forth in this Section 5 are  Executive’s sole rights and remedies in the event of the termination of his employment, except for  any rights and remedies that are not waivable.    6. Restrictions and Obligations of the Executive.  6.1 Confidentiality.  (a) During the course of the Executive’s employment by the Company,  the Executive will have access to certain trade secrets and confidential information relating to the  Company, its subsidiaries and affiliates (the “Protected Parties”) which is not readily available  from sources outside the Company. The confidential and proprietary information and, in any  material respect, trade secrets of the Protected Parties are among their most valuable assets,  including but not limited to, their customer, supplier and vendor lists, databases, competitive  strategies, computer programs, frameworks, or models, their marketing programs, their sales,  financial, marketing, training and technical information, and any other information, whether  communicated orally, electronically, in writing or in other tangible forms concerning how the  Protected Parties create, develop, acquire or maintain their products and marketing plans, target  their potential customers and operate their businesses. The Protected Parties invested, and continue  to invest, considerable amounts of time and money in their process, technology, know-how,  obtaining and developing the goodwill of their customers, their other external relationships, their  data systems and data bases, and all the information described above (hereinafter collectively  referred to as “Confidential Information”), and any misappropriation or unauthorized disclosure  of Confidential Information in any form would irreparably harm the Protected Parties. The  Executive acknowledges that such Confidential Information constitutes valuable, highly  confidential, special and unique property of the Protected Parties. The Executive shall hold in a  fiduciary capacity for the benefit of the Protected Parties all Confidential Information relating to  the Protected Parties and their businesses, which shall have been obtained by the Executive during  the Executive’s employment by the Company and which shall not be or become public knowledge  (other than by acts by the Executive or representatives of the Executive in violation of this  Agreement). During the period the Executive is employed by the Company and at any time  thereafter, the Executive shall not disclose any Confidential Information, directly or indirectly, to  any person or entity for any reason or purpose whatsoever, nor shall the Executive use it in any  way, except (i) in the course of the Executive’s employment with, and for the benefit of, the  

 

    Protected Parties, (ii) to enforce any rights or defend any claims hereunder or under any other  agreement to which the Executive is a party with any Protected Party, provided that such  disclosure is relevant to the enforcement of such rights or defense of such claims and is only  disclosed in the formal proceedings related thereto, (iii) when required to do so by a court of law,  by any governmental agency having supervisory authority over the business of any of the Protected  Parties or by any administrative or legislative body (including a committee thereof) with  jurisdiction to order him to divulge, disclose or make accessible such information, provided that,  to the extent permitted by law, the Executive shall give prompt written notice to the Company of  such requirement, disclose no more information than is so required, and cooperate with any  attempts by any Protected Party (coordinated in all events through the Company) to obtain a  protective order or similar treatment, (iv) as to such Confidential Information that becomes  generally known to the public without his violation of this Section 6.1(a), or (v) to the Executive’s  spouse, attorney, and/or his personal tax and financial advisors as reasonably necessary or  appropriate to advance the Executive’s tax, financial and other personal planning (each  an “Exempt Person”), provided, however, that any disclosure or use of Confidential Information  by an Exempt Person other than the exceptions set forth in (i)-(iv) above shall be deemed to be a  breach of this Section 6.1(a) by the Executive. The Executive shall take all reasonable steps to  safeguard the Confidential Information and to protect it against disclosure, misuse, espionage, loss  and theft. The Executive understands and agrees that the Executive shall acquire no rights to any  such Confidential Information. For the sake of clarity, the Executive may retain documentation  concerning his employment terms and compensation without violation of any section herein.  (b) All files, records, documents, drawings, specifications, data,  computer programs, evaluation mechanisms and analytics and similar items relating thereto or to  the Business (for the purposes of this Agreement, “Business” shall be as defined in Section 6.4  hereof), as well as all customer lists, specific customer information, compilations of product  research and marketing techniques of any of the Protected Parties, whether prepared by the  Executive or otherwise coming into the Executive’s possession, shall remain the exclusive  property of the Protected Parties.  (c) It is understood that while employed by the Company, the Executive  shall promptly disclose to it, and assign to it the Executive’s interest in any invention, improvement  or discovery made or conceived by the Executive, either alone or jointly with others, which arises  out of the Executive’s employment. At the Company’s request and expense, the Executive shall  assist any Protected Party during the period of the Executive’s employment by the Company and  thereafter (but subject to reasonable notice and taking into account the Executive’s schedule) in  connection with any controversy or legal proceeding relating to such invention, improvement or  discovery and in obtaining domestic and foreign patent or other protection covering the same.  (d) The Executive understands that nothing contained in this Agreement  limits the Executive’s ability to file a charge or complaint with the Equal Employment Opportunity  Commission, the National Labor Relations Board, the Securities and Exchange Commission or  any other federal, state or local governmental agency or commission (each, a “Government  Agency”). The Executive further understands that this Agreement does not limit the Executive’s  ability to communicate with any Government Agency, including to report possible violations of  federal law or regulation or making other disclosures that are protected under the whistleblower  provisions of applicable federal, state or local law or regulation, or otherwise participate in any  

 

    investigation or proceeding that may be conducted by any Government Agency, including  providing documents or other information, without notice to the Company.  (e) This Agreement does not limit the Executive’s right to receive an  award for information provided to any Government Agency. The Executive will not be criminally  or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that  (i) is made (x) in confidence to a federal, state, or local government official, either directly or  indirectly, or to an attorney; and (y) solely for the purpose of reporting or investigating a suspected  violation of law; or (ii) is made in a complaint or other document filed in a lawsuit or other  proceeding, if such filing is made under seal.  6.2 Cooperation. During the period the Executive is employed by the Company  and thereafter, the Executive shall cooperate with any investigation or inquiry by the Company or  any governmental or regulatory agency or body that relates to the operations of a Protected Party  during the period of the Executive’s employment by the Company; provided that any such  cooperation shall take into account the Executive’s then current business and other obligations.  Employee shall be reimbursed all out of pocket reasonable costs incurred by way of any such  cooperation.  6.3 Non-Solicitation or Hire. During the period the Executive is employed  by the Company and for a period following the termination of the Executive’s employment for any  reason equal to the longer of either (a) one (1) year following the Executive’s termination of  employment and (b) the applicable period during which the severance payments are scheduled to  be paid pursuant to Section 5.2(b) (such longer period, the “Restricted Period”), the Executive  shall not (i) directly or indirectly solicit, attempt to solicit or induce (x) any party who is a customer  of a Protected Party, who was a customer of a Protected Party at any time during the twelve (12)  month period immediately prior to the date the Executive’s employment terminates or who was a  prospective customer that has been identified and targeted by a Protected Party immediately prior  to the date the Executive’s employment terminates, for the purpose of marketing, selling or  providing to any such party any services or products offered by or available from a Protected Party  on the date the Executive’s employment terminates, or (y) any supplier or prospective supplier to  a Protected Party as of the date the Executive’s employment terminates to terminate, reduce or  alter negatively its relationship with the Protected Party or in any manner interfere with any  agreement or contract between the Protected Party and such supplier, or (ii) directly or indirectly  solicit or induce any current employee of a Protected Party or any person who was an employee  of a Protected Party during the twelve (12) month period immediately prior to the date the  Executive’s employment terminates to terminate such employee’s employment relationship with  a Protected Party in order, in either case, to enter into a similar relationship with the Executive, or  any other person or any entity.  6.4 Non-Competition. During the Restricted Period, the Executive shall  not, without the Company’s prior written consent, whether individually, as a director, manager,  member, stockholder, partner, owner, employee, consultant or agent of any business, or in any  other capacity, other than on behalf of a Protected Party, organize, establish, own, operate, manage,  control, engage in, participate in, invest in, permit his name to be used by, act as a consultant or  advisor to, render services for (alone or in association with any person, firm, corporation or  business organization), or otherwise engage in the business of providing financial products or  

 

    services to Taft-Hartley employee benefit plans, labor unions, employee benefit plans associated  with labor unions in any manner, or other entities associated or affiliated with labor unions  (the “Business”). Notwithstanding the foregoing, nothing in this Agreement shall prevent the  Executive from (a) owning for passive investment purposes not intended to circumvent this  Agreement, less than three percent (3%) of the publicly traded common equity securities of any  company engaged in the Business (so long as the Executive has no power to manage, operate,  advise, consult with or control the competing enterprise and no power, alone or in conjunction  with other affiliated parties, to select a director, manager, general partner, or similar governing  official of the competing enterprise other than in connection with the normal and customary voting  powers afforded the Executive in connection with any permissible equity ownership) or (b) being  employed by or otherwise associated with (including as a director) an organization or entity of  which a subsidiary, division, segment, unit, etc. is engaged in the Business (a “Competing  Division”), including in a position to which employees of the Competing Division report, directly  or indirectly, provided that the Executive has no direct responsibilities with such Competing  Division other than having general responsibility for the operation of such Competing Division.  For the avoidance of doubt, the Executive may be an officer of a bank or investment advisor or a  union or related organization that engages in the Business, provided that the Executive is not  directly employed in, or working in, the Competing Division.  6.5 Property. The Executive acknowledges that all originals and copies  of materials, records and documents generated by him or coming into his possession during his  employment by the Company (prior to or during the Term) are the sole property of the Company  or its subsidiaries or affiliates (“Company Property”). During the period the Executive is employed  by the Company, and at all times thereafter, the Executive shall not remove, or cause to be  removed, from the premises of the Company or any of its subsidiaries or affiliates, copies of any  record, file, memorandum, document, computer related information or equipment, or any other  item relating to the business of the Company, except in furtherance of his duties under this  Agreement. When the Executive’s employment with the Company terminates, or upon request of  the Company at any time, the Executive shall promptly deliver to the Company all copies of  Company Property in his possession or control.  6.6 Non-disparagement. The Executive agrees that he shall not, during  the period the Executive is employed by the Company and at any time thereafter, publish or  communicate to any person or entity any Disparaging remarks, comments or statements  concerning the Company and its directors, officers, shareholders, employees, agents, attorneys,  successors and assigns and the Company agrees that during the period the Executive is employed  by the Company and at any time thereafter, it shall not, and it shall use its reasonable efforts to  cause its directors and officers not to, publish or communicate to any person or entity any  Disparaging remarks, comments or statements concerning the Executive; provided, however, that  nothing contained in this Section 6.6 shall preclude either Party from providing truthful testimony  in connection with a valid subpoena, court order, regulatory request, other legal proceeding, or as  may be required by law. “Disparaging” remarks, comments or statements are those that impugn  the character, honesty, integrity or morality of the individual or entity being disparaged.  6.7 Reasonableness of Covenants. The Parties agree that the duration and  area for which the covenants set forth in this Section 6 apply are reasonable. In the event that any  arbitrator or court of competent jurisdiction determines that the time period or the area or both are  

 

    unreasonable and any such covenant is to that extent unenforceable, the Company and the  Executive agree that such covenant shall be modified to remain in full force and effect for the  greatest time period and in the greatest area that would not render it unenforceable.  6.8 Remedies; Specific Performance. The Parties acknowledge and agree that  the Executive’s breach or threatened breach of any of the restrictions set forth in Section 6 or the  Company’s breach or threatened breach of the restrictions set forth in Section 6.6 shall result in  irreparable and continuing damage to the Protected Parties or the Executive for which there may  be no adequate remedy at law and that the Protected Parties or the Executive shall be entitled to  seek equitable relief, including specific performance and injunctive relief as remedies for any such  breach or threatened or attempted breach, without requiring the posting of a bond. The Parties  hereby consent to the grant of an injunction (temporary or otherwise) against the other Party or the  entry of any other court order against the other party prohibiting and enjoining him or it from  violating, or directing him or it to comply with any provision of Section 6. The Parties also agree  that such remedies shall be in addition to any and all remedies, including damages, available to the  Protected Parties or the Executive for such breaches or threatened or attempted breaches.  7.  Other Provisions.  7.1 Notices. Any notice or other communication required or which may  be given hereunder shall be in writing and shall be delivered personally, sent by facsimile  transmission or sent by certified, registered or express mail, postage prepaid or overnight mail and  shall be deemed given when so delivered personally, or sent by facsimile transmission or, if mailed,  four (4) business days after the date of mailing or one (1) business day after overnight mail,  addressed to such party at the address set forth below or such other address as may hereafter be  designated in writing by the addressee as follows:  (a) If the Company, to:    Amalgamated Bank   275 Seventh Avenue   New York, New York 10001   Attention: Chairman of the Board   Telephone: (212) 255-6200   Fax: (212) 895-4428  With a copy to:  Amalgamated Financial Corp.  275 Seventh Avenue  New York, New York 10001  Attention: General Counsel  Telephone: (212) 895 4431  (b) If the Executive, to the Executive’s home address reflected in the  Company’s records.  

 

    7.2  Entire Agreement. This Agreement, together with the other agreements  referenced herein, contain the entire understanding of the Parties with respect to the subject matter  hereof and thereof and supersede all prior and contemporaneous oral or written agreements,  negotiations, understandings, statements or proposals with respect to the subject matter hereof and  thereof.  7.3 Representations and Warranties. The Executive represents and  warrants that he is not a party to or subject to any restrictive covenants, legal restrictions or other  agreements in favor of any entity or person which could preclude, inhibit, impair or limit the  Executive’s ability to perform his obligations under this Agreement, including, but not limited to,  non-competition agreements, non-solicitation agreements or confidentiality agreements. The  Company represents and warrants that (a) it has full corporate power and authority to execute and  deliver this Agreement and to perform its obligations contemplated hereunder, (b) it has taken all  corporate action necessary to authorize the execution and performance of this Agreement, (c) it  has obtained all required regulatory or other consents as may be necessary or appropriate to permit  it to enter into this Agreement and (d) this Agreement has been duly executed and delivered by it  and, assuming due authorization, execution, and delivery of this Agreement by the Executive, is  the legal, valid and binding obligation of the Company enforceable against the Company in  accordance with its terms.  7.4 Waiver and Amendments. This Agreement may be modified, amended,  superseded, canceled, renewed or extended, and the terms and conditions hereof may be waived,  only by a written instrument signed by the Parties or, in the case of a waiver, by the party waiving  compliance. No delay on the part of any party in exercising any right, power or privilege hereunder  shall operate as a waiver thereof, nor shall any waiver on the part of any right, power or privilege  hereunder, nor any single or partial exercise of any right, power or privilege hereunder, preclude  any other or further exercise thereof or the exercise of any other right, power or privilege  hereunder.  7.5 Governing Law, Dispute Resolution and Venue.  (a) This Agreement shall be governed and construed in accordance with  the laws of New York applicable to agreements made and to be performed entirely within such  state, without regard to conflicts of laws principles, unless superseded by federal law.  (b) Any controversy or claim arising out of or relating to this Agreement  or the breach hereof or otherwise arising out of the Executive’s employment or the termination of  that employment (including, without limitation, any claims of unlawful employment  discrimination whether based on age or otherwise) shall, to the fullest extent permitted by law, be  settled by arbitration in any forum and form agreed upon by the parties or, in the absence of such  an agreement, under the auspices of the American Arbitration Association (“AAA”) in New York,  New York in accordance with the Employment Dispute Resolution Rules of the AAA, including,  but not limited to, the rules and procedures applicable to the selection of arbitrators, except that  the arbitrator shall apply the law as established by decisions of the U.S. Supreme Court, the Court  of Appeals for the Second Circuit and the U.S. District Court for the Southern District of New  York in deciding the merits of claims and defenses under federal law (including without limitation  any federal antidiscrimination law). The Company and the Executive specifically agree that the  

 

    arbitrator may award injunctive relief. In the event that any person or entity other than the  Executive or the Company may be a party with regard to any such controversy or claim, such  controversy or claim shall be submitted to arbitration subject to such other person or entity’s  agreement. Judgment upon the award rendered by the arbitrator may be entered in any court having  jurisdiction thereof. The parties covenant that they shall participate in the arbitration in good faith.  Each party to any arbitration proceeding shall bear its or his own costs and expenses in connection  therewith, except as permitted by law or otherwise ordered by the arbitrator in such proceeding.  Notwithstanding the foregoing, this Section 7.5 shall not preclude any party hereto from pursuing  a court action pursuant to Section 6 or otherwise for the sole purpose of obtaining a temporary  restraining order or a preliminary injunction.  7.6 Assignability by the Company and the Executive. This Agreement, and the  rights and obligations hereunder, may not be assigned by the Company or the Executive without  written consent signed by the other party; provided that the Company may assign this Agreement  to any successor that continues the business of the Company, including any person or entity that  acquires all or substantially all of the assets of the Company.  7.7 Counterparts. This Agreement may be executed in counterparts, each  of which shall be deemed an original but all of which shall constitute one and the same instrument.  7.8 Headings. The headings in this Agreement are for convenience of reference  only and shall not limit or otherwise affect the meaning of terms contained herein.  7.9 Severability. If any term, provision, covenant or restriction of  this Agreement, or any part thereof, is held by a court of competent jurisdiction of any foreign,  federal, state, county or local government or any other governmental, regulatory or administrative  agency or authority to be invalid, void, unenforceable or against public policy for any reason, the  remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in  full force and effect and shall in no way be affected or impaired or invalidated. The Executive  acknowledges that the restrictive covenants contained in Section 6 are a condition of this  Agreement and are reasonable and valid in temporal scope and in all other respects.  7.10 Tax Withholding. The Company or other payor is authorized to withhold  from any benefit provided or payment due hereunder, the amount of withholding taxes due any  federal, state or local authority in respect of such benefit or payment and to take such other action  as may be necessary in the opinion of the Board to satisfy all obligations for the payment of such  withholding taxes.  7.11 Tax Advice.  Executive acknowledges that no representative or agent of the  Company has provided him with any tax advice of any nature, and Executive has had the  opportunity to consult with his own legal, tax and financial advisors as to tax and related matters  concerning the compensation to be received under this Agreement.  7.12 Indemnification and Insurance. The Executive shall be indemnified in  accordance with the Company’s certificate of incorporation, by-laws, and policies and to the fullest  extent permitted by, and in accordance with, applicable law. The Company agrees that it shall  promptly move to ensure that the Executive is insured under the Company’s Directors’ and  

 

    Officers’ liability insurance policy (including Side A coverage). Subject to the requirements of  applicable law, the Company shall indemnify the Executive on a current basis and to the extent  the Company acquires insurance to cover all or part of the Company’s indemnification obligations,  the Company shall ensure that amounts paid in respect of such insurance are paid on a current  basis.  7.13 Section 409A. This Agreement is intended to comply with Code Section  409A to the extent subject thereto and shall be interpreted and administered in compliance  therewith. Any term used in this Agreement which is defined in Code Section 409A or the  regulations promulgated thereunder (the “Regulations”) shall have the meaning set forth therein  unless otherwise specifically defined herein. For purposes of determining the timing of payment  of any obligations to pay nonqualified deferred compensation (within the meaning of Code Section  409A) under this Agreement that arise in connection with the Executive’s “termination of  employment,” “termination” or other similar references, references to termination of employment  or similar references shall mean a “separation from service” within the meaning of §1.409A-l(h)  of the Regulations. Notwithstanding any other provision of this Agreement, if at the time of such  “separation from service”, the Executive is a “specified employee,” as defined in Code Section  409A or the Regulations, and any payments upon such termination under this Agreement hereof  shall result in additional tax or interest to the Executive under Code Section 409A, Executive shall  not be entitled to receive such payments until the date which is six (6) months after the termination  of the Executive’s employment for any reason or, if earlier, the date of the Executive’s death. Each  amount to be paid or benefit to be provided to the Executive under this Agreement that constitutes  nonqualified deferred compensation subject to Code Section 409A shall be construed as a separate  identified payment for purposes of Code Section 409A. If any expense reimbursement payable to  the Executive under this Agreement is determined to be “nonqualified deferred compensation”  within the meaning of Code Section 409A, including, without limitation any reimbursement under  Section 4.4, then the reimbursement shall be made to the Executive as soon as practicable after  submission for the reimbursement, but no later than December 31 of the year following the year  during which such expense was incurred. Any offset, recoupment or clawback provided by Section  7.14 or 7.15, or otherwise permitted in this Agreement, shall be applied to the maximum extent  possible to comply with Code Section 409A. In addition, if the Parties become aware that any  provision of this Agreement could reasonably be expected to subject the Executive to any  additional tax or interest under Code Section 409A, then the Company and the Executive agree to  act in good faith to reform such provision; provided that any such reform shall (x) maintain, to the  maximum extent practicable, the original intent of the applicable provision without subjecting the  Executive to such additional tax or interest, and (y) not incur any additional compensation expense  as a result of such reformation. Notwithstanding the foregoing, the Company does not represent,  warrant or guarantee that any payments that may be made pursuant to this Agreement will not  result in inclusion in Executive’s gross income, or any penalty, pursuant to Section 409A(a)(1) of  the Code or any similar state or local statute or regulation.  7.14 Golden Parachute Provisions.  (a) Anything in this Agreement to the contrary notwithstanding, if any  payment or benefit to the Executive under this Agreement or otherwise would be a “golden  parachute payment” or “indemnification payment” within the meaning of Section 18(k) of the  Federal Deposit Insurance Act, such payment or benefit shall not be made unless permitted under  

 

    applicable law. The Company shall use best efforts promptly to apply to the appropriate federal  banking agency for a determination that any golden parachute payment is permissible.  (b) In the event that the benefits provided for in the Agreement, when  aggregated with any other payments or benefits received by the Executive (the “Aggregate  Benefits”), would (i) constitute “parachute payments” within the meaning of Section 280G of the  Code, and (ii) would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise  Tax”), then the Executive’s Aggregate Benefits will be either: (a) delivered in full, or (b) delivered  as to such lesser extent as would result in no portion of such Aggregate Benefits being subject to  the Excise Tax, whichever of the foregoing amounts, taking into account the applicable federal,  state and local income taxes and the Excise Tax, results in the receipt by the Executive on an after- tax basis of the greatest amount of Aggregate Benefits, notwithstanding that all or some portion of  such Aggregate Benefits may be taxable under Section 4999 of the Code. Unless the Company  and the Executive otherwise agree in writing, any determination required under this paragraph will  be made in writing by an independent certified public accounting firm mutually agreeable to the  Company and the Executive (the “Accounting Firm”) whose determination will be conclusive and  binding upon Executive and the Company for all purposes. For purposes of making the calculations  required by this paragraph, the Accounting Firm may make reasonable assumptions and  approximations concerning applicable taxes and may rely on reasonable, good faith interpretations  concerning the application of Sections 280G and 4999 of the Code. The Company and the  Executive will furnish to the Accounting Firm such information and documents as the Accounting  Firm may reasonably request in order to make a determination under this paragraph. To the extent  any reduction in Aggregate Benefits is required by this paragraph, Aggregate Benefits shall be  reduced or eliminated in reverse order of time of payment (that is, Aggregate Benefits payable  later shall be reduced or eliminated before any reduction or elimination of Aggregate Benefits  payable sooner), Aggregate Benefits payable at the same time shall be reduced or eliminated in  accordance with the Executive’s instructions provided the Company has no reasonable objection  thereto, and all reductions or eliminations shall be based on the value of the Aggregate Benefits  established for purposes of the determination required under this paragraph. All fees and expenses  of the Accounting Firm shall be borne solely by the Company.  (c) The provisions of this Agreement are subject to and shall be  interpreted to be consistent with Applicable Law, which terms control over the terms of this  Agreement in the event of a conflict between Applicable Law and this Agreement.  Notwithstanding anything herein to the contrary, no payment or benefit shall be paid or provided  to the Executive or be vested or accrued if any such payment or benefit, vesting or accrual would  violate Applicable Law and, to the extent any such payment or benefit that has been paid, provided,  vested or accrued is determined to be in violation of Applicable Law, any such payment or benefit  shall be subject to recoupment or cancellation. In the event of any such violation, the Executive  and the Company shall cooperate in good faith to endeavor to meet the requirements of Applicable  Law in a manner that preserves to the greatest extent possible the intent and purposes of this  Amendment. “Applicable Law” means the laws, statutes, rules, regulations, treaties, directives,  guidelines, ordinances, codes, administrative or judicial precedents or authorities and orders of any  Governmental Authority, as well as the interpretation or administration thereof by any  Governmental Authority charged with the enforcement, interpretation or administration thereof,  and all applicable administrative orders, decisions, judgments, directed duties, requests, licenses,  authorizations, decrees and permits of, and agreements with any Governmental Authority, to which  

 

    the Company or the Executive are a party or by which the Company or the Executive are bound,  in each case whether or not having the force of law, and all orders, decisions, judgments, and  decrees of all courts or arbitrators in proceedings or actions to which the Company or the Executive  are a party or by which the Company or the Executive are bound. “Governmental  Authority” means the United States of America, any state or territory thereof and any federal, state,  provincial, city, town, municipality, county or local authority, including without limitation, the  Federal Deposit Insurance Corporation, the New York State Department of Financial Services,  and any board, bureau, instrumentality, agency or other entity exercising executive, legislative,  judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.  7.15 Claw-Back and Forfeiture. This Agreement and any Annual Bonus, Equity  Plan or other incentive or performance-based compensation paid or payable to the Executive  pursuant to this Agreement or under any other plan or arrangement adopted by the Company  (collectively, “Incentive Compensation”) shall be subject in all respects to the Company’s Policy  on Sound Executive Compensation and any other compensation claw-back or forfeiture policy  implemented by the Company from time to time and applicable to all officers of the Company on  the same terms and conditions, including without limitation, any such policy adopted to comply  with the requirements of applicable law or the rules and regulations of any stock exchange  applicable to the Company, and any revisions or amendments to any of the foregoing policies  adopted by the Company from time to time and applicable to all officers of the Company on the  same terms and conditions (collectively, the “Claw-Back Policy”). The Executive acknowledges  and agrees that, if the Company is permitted to and does affirmatively effect a claw-back or  forfeiture of Incentive Compensation pursuant to the Claw-Back Policy, the Company shall be  entitled to recover or retain any Incentive Compensation paid or payable to the Executive in  accordance with the terms and conditions of the Claw-Back Policy.  7.16 Execution.  This Agreement may be executed in several counterparts  (including counterparts by email, facsimile, portable document format (pdf) or any electronic  signature complying with the U.S. federal ESIGN Act of 2000 (including DocuSign)), each of  which shall be deemed an original and all of which shall together constitute one and the same  instrument.   7.17 Legal Representation and Independent Review. Executive acknowledges  that he was advised to consult with, and has had ample opportunity to receive the advice of,  independent legal counsel before executing this Agreement – and the Company hereby advises  Executive to do so – and that Executive has fully exercised that opportunity to the extent he desired.  Executive acknowledges that he had ample opportunity to consider this Agreement and to receive  an explanation from such legal counsel of the legal nature, effect, ramifications, and consequences  of this Agreement.  Executive warrants that he has carefully read this Agreement, that he  understands completely its contents, that he understands the significance, nature, effect, and  consequences of signing it, and that he has agreed to and signed this Agreement knowingly and  voluntarily of his own free will, act, and deed, and for full and sufficient consideration.    IN WITNESS WHEREOF, the Parties hereto, intending to be legally bound hereby, have executed  this Agreement as of the day and year first above mentioned.  

 

    EXECUTIVE:    _________________________________  Sean Searby, an individual  COMPANY:  AMALGAMATED FINANCIAL CORP.    By:__________________________________        Name:        Title:      Priscilla Sims Brown President & CEO

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