Document:

Exhibit 10.3

 

EXECUTION COPY

 

EMPLOYMENT
AGREEMENT

 

This Employment Agreement
(the “Agreement”) is made and entered into, effective as of April 6, 2017 (the “Effective Date”),
by and between Seneca Federal Savings and Loan Association (the “Bank”) and George J. Sageer (“Executive”).
Any reference to the “Company” shall mean any newly-formed stock holding company of the Bank, or any successor
thereto.

 

WHEREAS, the Bank
wishes to assure itself of the continued services of Executive for the period provided in this Agreement; and

 

WHEREAS, in order
to induce Executive to remain in the employ of the Bank and to provide further incentive for Executive to achieve the financial
and performance objectives of the Bank, the parties desire to enter into this Agreement; 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.

 

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 term of this
Agreement, Executive agrees to serve as Executive Vice President of Retail Banking of the Bank (the “Executive Position”),
and will perform the duties and will have all powers associated with such position as set forth in any job description provided
to Executive by the Bank, and as may be set forth in the bylaws of the Bank. During the period provided in this Agreement, Executive
also agrees to serve, if elected, as an officer or director of any subsidiary or affiliate of the Bank and in such capacity carry
out such duties and responsibilities reasonably appropriate to that office.

 

		2.	TERM AND DUTIES.

 

(a)          Term
and Annual Renewal. The initial term of this Agreement and the period of Executive’s employment hereunder shall begin
as of the Effective Date and shall continue through December 31, 2017. Commencing on January 1, 2018 and continuing on each January
1st thereafter (the “Renewal Date”), this Agreement shall renew for an additional year such that
the remaining term shall be one (1) year, provided, however, that in order for this Agreement to renew, the disinterested members
of the Board of Directors of the Bank (the “Board”) must take the following actions within the time frames set
forth below prior to each Renewal Date: (1) at least 30 days prior to each Renewal Date, conduct a comprehensive performance evaluation
and review of Executive for purposes of determining whether to extend this Agreement; and (2) affirmatively approve the renewal
or non-renewal of this Agreement, which such decision shall be included in the minutes of the Board’s meeting. If the decision
of the disinterested members of the Board is not to renew this Agreement, then the Board shall provide Executive with a written
notice of non-renewal (the “Non-Renewal Notice”) at least 15 days prior to any Renewal Date, such that this
Agreement shall terminate immediately following such Renewal Date. The failure of the disinterested members of the Board to take
the actions set forth herein before any Renewal Date

 

     

     

    

 

will result in the automatic non-renewal of
this Agreement, even if the Board fails to affirmatively issue the Non-Renewal Notice to Executive. If the Board fails to inform
Executive of its determination regarding the renewal or non-renewal of this Agreement, Executive may request, in writing, the results
of the Board’s action (or non-action) and the Board shall, within 10 days of the receipt of such request, provide a written
response to Executive. Reference herein to the term of this Agreement shall refer to both such initial term and such extended terms.

 

(b)          Change
in Control. Notwithstanding the foregoing, in the event the Bank or the Company has entered into an agreement to effect
a transaction that would be considered a Change in Control as defined under Section 5 hereof, the term of this Agreement shall
be extended automatically so that it is scheduled to expire no less than one (1) year beyond the effective date of the Change in
Control, subject to extensions as set forth above.

 

(c)          Membership
on Other Boards or Organizations. During the period of his employment hereunder, except for periods of absence occasioned
by illness, reasonable vacation periods, and reasonable leaves of absence, Executive will devote all of his business time, attention,
skill and efforts to the faithful performance of his duties under this Agreement, including activities and duties related to the
Executive Position. Notwithstanding the preceding sentence, subject to the approval of the Board, Executive may serve as a member
of the board of directors of business, community and charitable organizations, provided that in each case such service shall not
materially interfere with the performance of his duties under this Agreement, adversely affect the reputation of the Bank or any
other affiliates of the Bank (as determined by the Board), or present any conflict of interest.

 

(d)          Continued
Employment Following Expiration of Term. Nothing in this Agreement shall mandate or prohibit a continuation of Executive’s
employment following the expiration of the term of this Agreement.

 

		3.	COMPENSATION, BENEFITS AND REIMBURSEMENT.

 

(a)          Base
Salary. In consideration of Executive’s performance of the responsibilities and duties set forth in this Agreement,
the Bank will provide Executive the compensation specified in this Agreement. The Bank will pay Executive a salary of $102,850.02
per year (“Base Salary”). Such Base Salary will be payable in accordance with the customary payroll practices
of the Bank. During the term of this Agreement, the Board may consider increasing, but not decreasing (other than a decrease which
is applicable to all senior officers of the Bank and in a percentage not in excess of the percentage decrease for other senior
officers), Executive’s Base Salary as the Board deems appropriate. Any change in Base Salary will become the “Base
Salary” for purposes of this Agreement.

 

(b)          Bonus.
Executive shall be eligible to participate in any bonus plan or arrangement of the Bank or the Company in which senior management
is eligible to participate. Nothing paid to Executive under any such plan or arrangement will be deemed to be in lieu of the other
compensation to which Executive is entitled under this Agreement.

 

(c)          Benefit
Plans. Executive will be entitled to participate in all employee benefit plans, arrangements and perquisites offered to
employees and officers of the Bank, on the same

 

    	 	2	 

     

    

 

terms and conditions as such plans are available
to other employees and officers of the Bank. Without limiting the generality of the foregoing provisions of this Section 3(c),
Executive also will be entitled to participate in any employee benefit plans including but not limited to retirement plans, pension
plans, profit-sharing plans, health-and-accident plans, or any other employee benefit plan or arrangement made available by the
Bank in the future to management employees, subject to and on a basis consistent with the terms, conditions and overall administration
of such plans and arrangements as applicable to other management employees.

 

(d)          Vacation.
Executive will be entitled to paid vacation time each year during the term of this Agreement measured on a calendar year basis,
in accordance with the Bank’s customary practices, as well as sick leave, holidays and other paid absences in accordance
with the Bank’s policies and procedures for officers. Any unused paid time off during an annual period will be treated in
accordance with the Bank’s personnel policies as in effect from time to time.

 

(e)          Expense
Reimbursements. The Bank will reimburse Executive for all reasonable travel, entertainment
and other reasonable expenses incurred by Executive during the course of performing his obligations under this Agreement, including,
without limitation, fees for memberships in such organizations as Executive and the Board mutually agree are necessary and appropriate
in connection with the performance of his duties under this Agreement, upon substantiation of such expenses in accordance with
applicable policies and procedures of the Bank. All reimbursements pursuant
to this Section 3(e) shall be paid promptly by the Bank and in any event no later than 30 days following the date on which the
expense was incurred. 

 

		4.	TERMINATION AND TERMINATION PAY.

 

Subject to Section 5 of
this Agreement which governs the occurrence of a Change in Control, Executive’s employment under this Agreement may be terminated
in the following circumstances:

 

(a)          Death.
Executive’s employment under this Agreement will terminate upon his death during the term of this Agreement, in which event
Executive’s estate or beneficiary shall be paid Executive’s Base Salary at the rate in effect at the time of Executive’s
death for a period of one (1) year following Executive’s death (payable in accordance with the regular payroll practices
of the Bank). In addition, for one (1) year following Executive’s death, the Bank will continue to provide non-taxable medical
and dental coverage substantially comparable to the coverage maintained by the Bank for Executive and his family immediately prior
to Executive’s death. Such continued benefits will be fully paid for by the Bank.

 

(b)          Disability.
This Agreement shall terminate in the event of Executive’s “Disability” as determined by the Board in its sole
discretion, in which event Executive shall be entitled to receive the compensation and vested benefits due to Executive as of the
date of Executive’s Disability, and Executive shall have no right to receive any other compensation or benefits under this
Agreement. “Disability” shall mean Executive’s permanent and totally physical or mental impairment that
restricts Executive from performing all the essential functions of normal employment.

 

(c)          Termination
for Cause. The Board may immediately terminate Executive’s

 

    	 	3	 

     

    

 

employment at any time for
“Cause.” Executive shall have no right to receive compensation or other benefits for any period after termination for
Cause, except for benefits that have vested prior to the date of termination for Cause. Termination for “Cause”
shall mean termination because of, in the good faith determination of the Board, Executive’s:

 

(i)           material
act of dishonesty or fraud in performing Executive’s duties on behalf of the Bank;

 

(ii)          willful
misconduct that in the judgment of the Board will likely cause economic damage to the Bank or injury to the business reputation
of the Bank;

 

(iii)         incompetence
(in determining incompetence, the acts or omissions shall be measured against standards generally prevailing in the banking industry);

 

(iv)        breach
of fiduciary duty involving personal profit;

 

(v)         intentional
failure to perform stated duties under this Agreement after written notice thereof from the Board;

 

(vi)        willful
violation of any law, rule or regulation (other than traffic violations or similar offenses which results only in a fine or other
non-custodial penalty) that reflect adversely on the reputation of the Bank, any felony conviction, any violation of law involving
moral turpitude, or any violation of a final cease-and-desist order; or any violation of the policies and procedures of the Bank
as outlined in the Bank’s employee handbook, which would result in termination of the Bank employees, as from time to time
amended and incorporated herein by reference; or

 

(vii)        material
breach by Executive of any provision of this Agreement.

 

(d)          Voluntary
Termination by Executive. Executive may voluntarily terminate employment during the term of this Agreement upon at least
30 days prior written notice to the Board. Except upon Executive’s voluntary termination “With Good Reason” (as
defined below), Executive shall have no right to receive any compensation or benefits under this Agreement or otherwise upon his
voluntary termination of employment, except for the compensation or benefits that have already been earned or vested. The Bank
may accelerate the date of termination upon receipt of written notice of Executive’s voluntary termination.

 

(e)          Termination
Without Cause or With Good Reason.

 

		(i)	The Board may immediately terminate Executive’s employment at any time for a reason other
than Cause (a termination “Without Cause”), and Executive may, by written notice to the Board, terminate this
Agreement at any time within 90 days following an event constituting “Good Reason,” as defined below (a termination
“With Good Reason”); provided, however, that the Bank shall have 30 days to cure the “Good Reason”
condition, but the Bank may waive its right to cure. Any termination of Executive’s employment shall have no effect on or
prejudice the vested rights of Executive under the Bank’s qualified or non-qualified retirement, pension,

 

    	 	4	 

     

    

 

savings, thrift,
profit-sharing or bonus plans, group life, health (including hospitalization, medical and major medical), dental, accident and
long term disability insurance plans or other employee benefit plans or programs, or compensation plans or programs in which Executive
was a participant.

 

		(ii)	In the event of termination as described under Section 4(e)(i) and subject to the requirements
of Section 4(e)(v), the Bank shall pay Executive, or in the event of Executive’s subsequent death, Executive’s beneficiary
or estate, as the case may be, as severance pay, a cash lump sum payment equal to the amount of Base Salary that would have been
earned by Executive had he remained employed with the Bank for the greater of: (A) 12 months; or (B) the remaining term of this
Agreement (the “Benefit Period”). Such payment shall be made to Executive within 30 days following Executive’s
date of termination, and will be subject to applicable withholding taxes.

 

		(iii)	In addition, the Bank will continue to provide to Executive life insurance coverage and non-taxable
medical and dental insurance coverage substantially comparable (and on substantially the same terms and conditions) to the coverage
maintained by the Bank for Executive immediately prior to his termination under the same cost-sharing arrangements that apply for
active employees of the Bank as of Executive’s date of termination. Such continued coverage shall cease upon the earlier
of: (A) the completion of the Benefit Period; or (B) the date on which Executive becomes a full-time employee of another employer,
provided Executive is entitled to benefits that are substantially similar to the health and welfare benefits provided by the Bank.
The period of continued health coverage required by Section 4980B(f) of the Internal Revenue Code of 1986, as amended (the “Code”),
shall run concurrently with the coverage period provided herein.

 

		(iv)	“Good Reason” exists if, without Executive’s express written consent,
any of the following occurs:

 

		(A)	a material reduction in Executive’s Base Salary;

 

		(B)	a material reduction in Executive’s authority, duties or responsibilities from the position
and attributes associated with the Executive Position;

 

		(C)	a relocation of Executive’s principal place of employment by more than 50 miles from the
Bank’s main office location as of the date of this Agreement; or

 

		(D)	a material breach of this Agreement by the Bank.

 

		(v)	Executive shall not be entitled to any payments or benefits under this Section 4(e) unless and
until Executive executes a release of claims (the “Release”) against the Bank and any affiliate, and their officers,
directors,

 

    	 	5	 

     

    

 

successors and
assigns, releasing said persons from any and all claims, rights, demands, causes of action, suits, arbitrations or grievances relating
to the employment relationship, including claims under the Age Discrimination in Employment Act, but not including claims for benefits
under tax-qualified plans or other benefit plans in which Executive is vested, claims for benefits required by applicable law or
claims with respect to obligations set forth in this Agreement that survive the termination of this Agreement. The Release must
be executed and become irrevocable by the 60th day following the date of Executive’s termination of employment,
provided that if the 60 day period spans two (2) calendar years, then, to the extent necessary to comply with Code Section 409A,
the payments and benefits described in this Section 4(e) will be paid, or commence, in the second calendar year.

 

(f)           Effect
on Status as a Director. In the event of Executive’s termination of employment under this Agreement for any reason,
such termination shall also constitute Executive’s resignation as a director of the Bank or the Company, or any subsidiary
or affiliate thereof, to the extent Executive is acting as a director of any of the aforementioned entities.

 

		5.	CHANGE IN CONTROL.

 

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

 

		(i)	Merger: The Bank or the Company merges into or consolidates with another entity whereby
the Bank or the Company is not the surviving entity, or the Bank or the Company merges another bank or corporation into the Bank
or the Company, and as a result, less than a majority of the combined voting power of the resulting corporation immediately after
the merger or consolidation is held by persons who were stockholders of the Company or the Bank immediately before the merger or
consolidation;

 

		(ii)	Acquisition of Significant Share Ownership: There is filed, or is required to be filed,
a report on Schedule 13D or another form or schedule (other than Schedule 13G) required under Sections 13(d) or 14(d) of the Securities
Exchange Act of 1934, as amended, if the schedule discloses that the filing person or persons acting in concert has or have become
the beneficial owner of 25% or more of a class of the Company’s or the Bank’s voting securities; provided, however,
this clause (ii) shall not apply to beneficial ownership of the Company’s or the Bank’s voting shares held in a fiduciary
capacity by an entity of which the Company directly or indirectly beneficially owns 50% or more of its outstanding voting securities;

 

		(iii)	Change in Board Composition: During any period of two (2) consecutive years, individuals
who constitute the Company’s or the Bank’s Board of Directors at the beginning of the two-year period cease for any
reason to constitute at least a majority of the Company’s or the Bank’s Board of

 

    	 	6	 

     

    

 

Directors; provided,
however, that for purposes of this clause (iii), each director who is first elected to the board (or first nominated by the board
for election by the stockholders) by a vote of at least two-thirds (2/3) of the directors who were directors at the beginning of
the two-year period or who is appointed to the Board as the result of a directive, supervisory agreement or order issued by the
primary federal regulator of the Company or the Bank shall be deemed to have also been a director at the beginning of such period;
or

 

		(iv)	Sale of Assets: The Company or the Bank sells to a third party all or substantially all
of its assets.

 

Notwithstanding anything
herein to the contrary, a Change in Control shall not be deemed to have occurred either: (i) upon the conversion of the Bank to
stock form (as a stand alone stock bank or as the subsidiary of a mutual or stock holding company); or (ii) following the conversion
of the Bank to a subsidiary of a mutual holding company, upon the subsequent conversion of any mutual holding company to stock
form, or in connection with any reorganization used to effect such a conversion.

 

(b)          Change
in Control Benefits. Upon the termination of Executive’s employment by the Bank (or any successor) Without Cause
or by Executive With Good Reason on or after the effective time of a Change in Control, the Bank (or any successor) shall pay Executive,
or in the event of Executive’s subsequent death, Executive’s beneficiary or estate, as severance pay an amount equal
to one (1) times the sum of Executive’s: (i) highest annual rate of Base Salary; and (ii) highest annual cash bonus paid
to, or earned by, Executive during the calendar year of the Change in Control or either of the two (2) calendar years immediately
preceding the Change in Control. Such payments shall be made in a lump sum within 30 days following Executive’s date of termination,
and will be subject to applicable withholding taxes. In addition, the Bank will continue to provide Executive with life insurance
coverage and non-taxable medical and dental insurance coverage substantially comparable to the coverage maintained by the Bank
for Executive immediately prior to his date of termination at no cost to Executive. Such continued coverage shall cease upon the
earlier of: (i) the date which is one (1) year from Executive’s date of termination or (ii) the date on which Executive becomes
a full-time employee of another employer, provided Executive is entitled to the benefits that are substantially similar to the
health and welfare benefits provided by the Bank. The period of continued health coverage required by Section 4980B(f) of the Code
shall not run concurrently with the coverage period provided herein. Notwithstanding the foregoing, the payments and benefits provided
in this Section 5(b) shall be payable to Executive in lieu of any payments or benefits that are payable under Section 4(e).

 

		6.	COVENANTS OF EXECUTIVE.

 

(a)          Non-Solicitation/Non-Compete.
Executive hereby covenants and agrees that, for a period of one (1) year following Executive’s termination of employment
with the Bank, and except as provided in (iv), Executive shall not, without the written consent of the Bank, either directly or
indirectly:

 

    	 	7	 

     

    

 

		(i)	solicit, offer employment to, or take any other action intended (or that a reasonable person acting
in like circumstances would expect) to have the effect of causing any officer or employee of the Bank, or any of its respective
subsidiaries or affiliates, to terminate his or her employment and accept employment or become affiliated with, or provide services
for compensation in any capacity whatsoever to, any business whatsoever that competes with the business of the Bank, or any of
their direct or indirect subsidiaries or affiliates, that has headquarters or offices within 25 miles of any location(s) in which
the Bank has business operations or has filed an application for regulatory approval to establish an office;

 

		(ii)	become an officer, employee, consultant, director, independent contractor, agent, joint venturer,
partner or trustee of any savings bank, savings and loan association, savings and loan holding company, credit union, bank or bank
holding company, insurance company or agency, any mortgage or loan broker or any other entity that competes with the business of
the Bank or any of their direct or indirect subsidiaries or affiliates, that: (A) has a headquarters within 25 miles of the Bank’s
headquarters (the “Restricted Territory”), or (B) has one or more offices, but is not headquartered, within
the Restricted Territory, but in the latter case, only if Executive would be employed, conduct business or have other responsibilities
or duties within the Restricted Territory; or

 

		(iii)	solicit, provide any information, advice or recommendation or take any other action intended (or
that a reasonable person acting in like circumstances would expect) to have the effect of causing any customer of the Bank to terminate
an existing business or commercial relationship with the Bank.

 

		(iv)	The restrictions contained in this Section 6(a) shall not apply in the event of Executive’s
termination of employment on or after the effective time of a Change in Control.

 

(b)          Confidentiality.
Executive recognizes and acknowledges that the knowledge of the business activities, plans for business activities, and all other
proprietary information of the Bank, as it may exist from time to time, are valuable, special and unique assets of the business
of the Bank. Executive will not, during or after the term of Executive’s employment, disclose any knowledge of the past,
present, planned or considered business activities or any other similar proprietary information of the Bank to any person, firm,
corporation, or other entity for any reason or purpose whatsoever unless expressly authorized by the Board or required by law.
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. Further, Executive may
disclose information regarding the business activities of the Bank to any bank regulator having regulatory jurisdiction over the
activities of the Bank pursuant to a formal regulatory request. In the event of a breach or threatened breach by Executive of the
provisions of this Section, the Bank will be entitled to an injunction restraining Executive from disclosing, in whole or in part,
the knowledge of the past,

 

    	 	8	 

     

    

 

present, planned or considered
business activities of the Bank or any other similar proprietary information, or from rendering any services to any person, firm,
corporation, or 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 from pursuing any other remedies available to the Bank for such breach
or threatened breach, including the recovery of damages from Executive.

 

(c)          Information/Cooperation.
Executive shall, upon reasonable notice, furnish such information and assistance to the Bank as may be reasonably 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 Executive
and the Bank or any other subsidiaries or affiliates.

 

(d)          Reliance.
Except as otherwise provided, all payments and benefits to Executive under this Agreement shall be subject to Executive’s
compliance with this Section 6, to the extent applicable. 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 6, 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 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
of business 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 from pursuing any other remedies available to them for such
breach or threatened breach, including the recovery of damages from Executive.

 

		7.	SOURCE OF PAYMENTS.

 

All payments provided in
this Agreement shall be timely paid by check or direct deposit from the general funds of the Bank (or any successor of the Bank).

 

		8.	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, except that this Agreement shall not affect or operate to reduce any benefit or compensation inuring
to Executive under another plan, program or agreement (other than an employment agreement) between the Bank and Executive.

 

		9.	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 affect any such action shall be null, void, and of no effect.

 

    	 	9	 

     

    

 

(b)          The
Bank shall require any successor or assignee, whether direct or indirect, by purchase, merger, consolidation or otherwise, to all
or substantially all the business or assets of the Bank, expressly and unconditionally to assume and agree to perform the Bank’s
obligations under this Agreement, in the same manner and to the same extent that the Bank would be required to perform if no such
succession or assignment had taken place.

 

		10.	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.

 

		11.	REQUIRED PROVISIONS.

 

Notwithstanding anything
herein contained to the contrary, the following provisions shall apply:

 

(a)          The
Board may terminate Executive’s employment at any time, but any termination by the Bank’s Board other than termination
for Cause 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 under this Agreement for any period after Executive’s termination for
Cause.

 

(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 U.S.C. §1818(e)(3)] or 8(g)(1) [12 U.S.C. §1818(g)(1)] of the Federal
Deposit Insurance Act (the “FDI 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 U.S.C. §1818(e)(4)] or 8(g)(1) [12 U.S.C. §1818(g)(1)] of the FDI 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)(1) [12 U.S.C. §1813(x)(1)] of the FDI 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.

 

    	 	10	 

     

    

 

(e)          All
obligations under this Agreement shall be terminated, except to the extent determined that continuation of this Agreement is necessary
for the continued operation of the Bank, (i) by the Comptroller of the Office of the Comptroller of the Currency or his or her
designee, 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 U.S.C. §1823(c)] of the FDI Act; or (ii) by the Comptroller or his or her designee at the time the
Comptroller 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 Comptroller 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.

 

(g)          Notwithstanding
anything else in this Agreement to the contrary (with the exception of Section 4(c)(i)), Executive’s employment shall not
be deemed to have been terminated unless and until Executive has a Separation from Service within the meaning of Code Section 409A.
For purposes of this Agreement, a “Separation from Service” shall have occurred if the Bank and Executive reasonably
anticipate that either no further services will be performed by Executive after the date of termination (whether as an employee
or as an independent contractor) or the level of further services performed is less than 50 percent of the average level of bona
fide services in the 36 months immediately preceding the termination. For all purposes hereunder, the definition of Separation
from Service shall be interpreted consistent with Treasury Regulation Section 1.409A-1(h)(ii). Notwithstanding the foregoing, this
Section 11(g) shall not apply in the event of the Executive’s termination for Cause.

 

(h)          Notwithstanding
the foregoing, if Executive is a “specified employee” (i.e., a “key employee” of a publicly traded
company within the meaning of Section 409A of the Code and the final regulations issued thereunder) and any payment under this
Agreement is triggered due to Executive’s Separation from Service, then solely to the extent necessary to avoid penalties
under Section 409A of the Code, no payment shall be made during the first six (6) months following Executive’s Separation
from Service. Rather, any payment which would otherwise be paid to Executive during such period shall be accumulated and paid to
Executive in a lump sum on the first day of the seventh month following such Separation from Service. All subsequent payments shall
be paid in the manner specified in this Agreement.

 

(i)           If
the Bank cannot provide Executive or Executive’s dependents any continued health insurance or other welfare benefits as required
by this Agreement because Executive is no longer an employee, applicable rules and regulations prohibit such benefits or the payment
of such benefits in the manner contemplated, or it would subject the Bank to penalties, then the Bank shall pay Executive or Executive’s
beneficiary or estate in the event of death a cash lump sum payment reasonably estimated to be equal to the value of such benefits
or the value of the remaining benefits at the time of such determination. Such cash payment shall be made in a lump sum within
30 days after the later of Executive’s date of termination or the effective date of the rules or regulations prohibiting
such benefits or subjecting the Bank to penalties.

 

    	 	11	 

     

    

 

(j)           To
the extent not specifically provided in this Agreement, any compensation or reimbursements payable to Executive shall be paid or
provided no later than two and one-half (2.5) months after the calendar year in which such compensation is no longer subject to
a substantial risk of forfeiture within the meaning of Treasury Regulation Section 1.409A-1(d).

 

(k)          Notwithstanding
anything in this Agreement to the contrary, Executive understands that nothing contained in this Agreement limits Executive’s
ability to file a charge or complaint with the Securities and Exchange Commission or any other federal, state or local governmental
agency or commission (“Government Agencies”) about a possible securities law violation without approval of the
Bank (or any affiliate). Executive further understands that this Agreement does not limit Executive’s ability to communicate
with any Government Agency 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 Bank (or any affiliate) related to the possible
securities law violation. This Agreement does not limit Executive’s right to receive any resulting monetary award for information
provided to any Government Agency.

 

		12.	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.

 

		13.	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.

 

		14.	ARBITRATION.

 

Any dispute or controversy
arising under or in connection with this Agreement shall be settled exclusively by binding arbitration, as an alternative to civil
litigation and without any trial by jury to resolve such claims, conducted by a single arbitrator mutually acceptable to the Bank
and Executive, sitting in a location selected by the Bank within 50 miles from the main office of the Bank, in accordance with
the rules of the American Arbitration Association’s National Rules for the Resolution of Employment Disputes then in effect.
Judgment may be entered on the arbitrator’s award in any court having jurisdiction. The cost of the arbitrator shall be paid
by the Bank; all other costs of arbitration shall be borne by the respective parties, except as otherwise provided in Section 14.

 

		15.	PAYMENT OF LEGAL FEES.

 

To the extent that such
payment(s) may be made without triggering penalty under Code Section 409A, all reasonable legal fees paid or incurred by Executive
pursuant to any dispute relating to this Agreement shall be paid or reimbursed by the Bank provided that the dispute is resolved
in Executive’s favor, and such reimbursement shall occur no later than 60 days after the end of the year in which the dispute
is settled or resolved in Executive’s favor.

 

    	 	12	 

     

    

 

		16.	INDEMNIFICATION.

 

The Bank shall provide
Executive (including Executive’s heirs, executors and administrators) with coverage under a standard directors’ and
officers’ liability insurance policy at its expense, and shall indemnify Executive (and Executive’s heirs, executors
and administrators) in accordance with the charter and bylaws of the Bank and to the fullest extent permitted under applicable
law against all expenses and liabilities reasonably incurred by Executive in connection with or arising out of any action, suit
or proceeding in which he may be involved by reason of Executive having been a director or officer of the Bank or any subsidiary
or affiliate of the Bank.

 

		17.	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 Bank	
        Seneca Federal Savings and Loan Association

        35 Oswego St.

        Baldwinsville, NY 13027

        Attention: Chairman of the Board

         

	To Executive:	Most recent address on file with the Bank

 

[Signature Page Follows]

 

    	 	13	 

     

    

 

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

 

	 	SENECA FEDERAL SAVINGS AND LOAN ASSOCIATION
	 	 	 
	 	 	 
	 	By:	/s/ William M. Le Beau
	 	Name:	 William M. Le Beau
	 	Title:	Chairman
	 	 	 
	 	EXECUTIVE
	 	 	 
	 	/s/ George J. Sageer
	 	George J. Sageer

 

    	 	14Exhibit
10.4

 

SUPPLEMENTAL
EXECUTIVE RETIREMENT AGREEMENT

 

THIS
AGREEMENT, made and entered into this 20 day of June, 2016 (hereinafter the “Effective Date”), by Seneca Federal
Savings and Loan Association, (hereinafter referred to as the “Bank”), a bank organized and existing under the laws
of New York, and Joseph Vitale (hereinafter referred to as the “Executive”).

 

WHEREAS,
the Executive has performed his duties as President and CEO of the Bank in an efficient and capable manner; and

 

WHEREAS,
the Bank is desirous of retaining the services of the Executive and rewarding him for his performance and his career with the
Bank; and

 

WHEREAS,
to retain the services of the Executive and to reward him for his performance and career with the Bank, the Board of Directors
(“Board”) has agreed to provide the Executive with a supplemental retirement benefit as described in this Agreement.

 

NOW,
THEREFORE, for the value received and in consideration of the mutual covenants contained herein, the parties agree as follows:

 

1.          Normal
Retirement Benefit

 

Upon
the Executive’s retirement or other Separation from Service (as defined in Section 12.e. below) on or after attaining age
65 (hereafter “Normal Retirement Age”), the Bank shall pay the Executive a supplemental annual pension equal to $25,000,
payable in equal monthly installments, commencing with the first month after such retirement or Separation from Service, and continuing
for a period of fifteen (15) years (the “Normal Retirement Benefit”).

 

2.          Early
Retirement Benefit

 

If
the Executive voluntarily terminates employment or has an Involuntary Termination (as defined below) on or after attaining age
50 (the “Early Retirement Age”) but prior to attaining the Normal Retirement Age and other than as a result of death
or Disability (which is addressed in Section 3 hereof) or in connection with a Change in Control (which is addressed in Section
7 hereof), then the Bank will pay the Executive an annual pension in an amount as indicated on the schedule immediately below,
payable in equal monthly installments (the “Early Retirement Benefit”), commencing with the first month after such
early retirement or Separation from Service, and continuing for a period of fifteen (15) years.

 

	Early
    Retirement Age	 	Early
    Retirement Benefit	 
	50	 	 	4,000	 
	51	 	 	5,000	 
	52	 	 	6,000	 

 

     

     

    

 

	Early
    Retirement Age	 	Early
    Retirement Benefit	 
	53	 	 	7,000	 
	54	 	 	8,000	 
	55	 	 	9,250	 
	56	 	 	10,500	 
	57	 	 	11,750	 
	58	 	 	13,000	 
	59	 	 	14,500	 
	60	 	 	16,000	 
	61	 	 	17,500	 
	62	 	 	19,250	 
	63	 	 	21,000	 
	64	 	 	22,750	 

 

Termination
for Cause shall include termination because of the Executive’s personal dishonesty, incompetence, willful misconduct, breach
of fiduciary duty involving personal profit, material breach of the Bank’s Code of Ethics, willfully engaging in actions
that in the reasonable opinion of the Board will likely cause substantial financial harm or substantial injury to the business
reputation of the Employer, intentional failure to perform stated duties, or willful violation of any law, rule or regulation (other
than routine traffic violations or similar offenses) or final cease-and-desist order. Termination for Cause shall occur after written
notice given to the Executive pursuant to two-thirds vote of all of the non-employee members of the Board, that Executive is being
terminated for Cause and setting forth the details thereof. Upon termination for Cause, the Executive shall forfeit any benefit
to which he may otherwise be entitled hereunder.

 

Involuntary
Termination shall mean the Executive’s involuntary termination by the Bank without Cause or voluntary termination for “Good
Reason.” The Executive will have Good Reason to terminate if the following occurs without the Executive’s consent:

 

		(i)	a material change
in Executives function, duties or responsibilities, which change would cause Executive’s position to become one of lesser
responsibility, importance, or scope from the position held and attributes of such position in effect as of the date of this Agreement
or any successor executive position;

 

		(ii)	a relocation
of Executive’s principal place of employment by more than thirty (30) miles from its location at the effective date of this
Agreement; or

 

		(iii)	a material reduction
in Executive’s base compensation.

 

Within
ninety (90) days of the initial occurrence of any Good Reason event described above, Executive must provide written notice to the
Bank of the existence of such condition. The Bank shall have at least thirty (30) days to remedy such event; provided, however,
that the Bank may waive such opportunity to cure and commence payment hereunder. If the Bank remedies the event within the thirty
(30)-day cure period, then no Good Reason shall be deemed to exist with respect to such event. If the Bank does not remedy the
event within such thirty (30)-day cure

 

     

     

    

 

period,
then the Executive may voluntarily resign for Good Reason at any time within sixty (60) days following the expiration of such cure
period. Notwithstanding the preceding, in the event of a continuing breach by the Bank, Executive, after giving due notice within
the prescribed time frame of an initial event specified above, shall not waive any of his rights solely under this Agreement and
this Section by virtue of the fact that Executive has submitted his resignation but has remained in the employment of the Bank
and is engaged in good faith discussions to resolve any occurrence of such Good Reason event.

 

In
the event of the Executive’s Involuntary Termination prior to Executive’s attainment of Early Retirement Age, Executive
will be entitled to his Accrued Benefit. For purposes of this Agreement, Executive’s “Accrued Benefit” shall
mean the amounts accrued under the Agreement for financial statement purposes in accordance with generally accepted accounting
principles (GAAP). Executive’s Accrued Benefit shall be paid in a cash lump sum within sixty (60) days following Executive’s
Separation from Service.

 

If
Executive voluntarily terminates his employment (other than for Good Reason) prior to Early Retirement Age, Executive shall be
entitled to no benefit hereunder.

 

3.         Death or Disability

 

a.           Upon
the death of the Executive while still actively employed, a death benefit shall be paid to the Executive’s beneficiary. If
the Executive’s death occurs prior to Early Retirement Age, Executive’s beneficiary shall be entitled to Executive’s
Accrued Benefit under the Agreement. If Executive has attained Early Retirement Age but has not attained Normal Retirement Age,
Executive’s beneficiary shall be entitled to the Early Retirement Benefit under Section 2 above, as if Executive had terminated
employment on the day prior to his death. If Executive has attained Normal Retirement Age, his beneficiary shall be entitled to
the Normal Retirement Benefit under Section 1 above. The Normal Retirement Benefit, the Early Retirement Benefit or Accrued Benefit,
as applicable, shall be payable in equal monthly installments for a period of fifteen (15) years, commencing within sixty (60)
days following the Executive’s death.

 

b.           Upon
the death of the Executive while receiving any supplemental pension benefit payments as provided in this Agreement, the Executive’s
designated beneficiary shall continue to receive the remaining equal monthly payments which would have been due the Executive payable
at the time and in the same manner as if paid to Executive.

 

c.           If
the Executive incurs a Disability, the Executive will be eligible for a benefit payable pursuant to this Section 3.c. If the Executive’s
Disability occurs prior to the Early Retirement Age, Executive shall be entitled to the Accrued Benefit under the Agreement. If
Executive has attained Early Retirement Age but has not attained Normal Retirement Age, Executive shall be entitled to the Early
Retirement Benefit under Section 2 above. If Executive has attained Normal Retirement Age, the Executive shall be entitled to the
Normal Retirement Benefit under Section 1 above. The Normal Retirement Benefit, the Early Retirement Benefit or Accrued Benefit,
as applicable, shall be payable in equal monthly installments for a period of fifteen (15) years, commencing within sixty (60)
days following the Executive’s Disability.

 

     

     

    

 

For
these purposes, Disability means that the Executive is (i) unable to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous
period of not less than twelve (12) months, or (ii) by reason of any medically determinable physical or mental impairment that
can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving
income replacement benefits for a period of not less than three months under an accident and health plan covering employees of
the Bank, or (iii) determined to be totally disabled by the Social Security Administration.

 

d.           The Executive shall designate a beneficiary to whom his benefits would be paid under this Agreement in the event of death. If the
Executive shall have failed to make an effective designation of beneficiary in writing, or if the individual or individuals so
designated shall die prior to receiving all payments required to be made to them hereunder and there is no designated alternate
beneficiary, then in such event the remaining payments shall be made first to the Executive’s surviving spouse, second to
the Executive’s surviving children, equally per stirpes if there is no surviving spouse, and finally to the estate of the
Executive if there are neither a surviving spouse nor surviving children. The Executive shall have the right at all times to revoke
or change his beneficiary designation by completing a new designation in writing.

 

4.          Assignment

 

Except
as otherwise provided herein, it is understood that neither the Executive, nor any person designated by him pursuant to this Agreement,
shall have any right to commute, sell, assign, transfer or otherwise convey the right to receive payments to be made hereunder,
which payments and the right thereto are expressly declared to be non-assignable and non-transferable. If such assignment or transfer
is attempted, the Bank may disregard it and continue to discharge its obligations hereunder as though such assignment or transfer
were not attempted.

 

5.          Independent
Arrangement

 

The
benefits payable under this Agreement shall be independent of, and in addition to, any other agreement which may exist from time
to time between the parties hereto, or any other compensation payable by the Bank to the Executive. This Agreement shall not be
deemed to constitute a contract of employment between the parties hereto, nor shall any provisions hereof restrict the right of
the Bank to discharge the Executive or restrict the right of the Executive to terminate his employment.

 

6.          Non-Trust
or Fiduciary Obligation

 

The
rights of the Executive under this Agreement (including the right to payment from the Bank) and of any beneficiary of the Executive
or of any other person who may acquire such rights shall be solely those of an unsecured creditor of the Bank. The Bank’s
obligation to pay the supplemental pension provided for under this Agreement is an unfunded promise by the Bank.

 

The
Bank may, but need not, set aside or invest funds, to meet its liability under this Agreement. Title to and beneficiary ownership
of any assets, whether cash, investments, life insurance, or otherwise, which the Bank may purchase or designate to pay the benefits
described

 

     

     

    

 

hereunder
shall at all times remain in the Bank, and the Executive shall have no property interest whatsoever in any of these assets or any
other assets of the Bank.

 

Any
insurance policy on the life of the Executive or any other asset acquired by the Bank in connection with the obligations assumed
by it hereunder shall not be deemed to be held under any trust for the benefit of the Executive or his beneficiaries or to be security
for the performance of the obligations of the Bank, but shall be, and remain, a general, unpledged, unrestricted asset of the Bank.
If the Bank purchases a life insurance or annuity policy on the life of the Executive, the Executive agrees to sign any papers
that may be required for that purpose and to undergo any medical examination or tests which may be necessary. If the Executive
is asked to submit information to an insurance company and if the Executive makes a material misrepresentation in an application
for any insurance that may be used by the Corporation to insure any or all of its obligations under this Agreement, and if as a
result of that material misrepresentation the insurance company is not required to pay all or any part of the benefits provided
under that insurance, the Executive shall forfeit all rights and benefits payable under this Agreement.

 

Nothing
contained in the Agreement and no action taken pursuant to the provisions of the Agreement shall create or be construed to create
a trust of any kind, or a fiduciary relationship between the Bank and the Executive or his beneficiaries. Any funds which may be
invested under this Agreement shall continue for all purposes to be a part of the general funds of the Bank, and no person, other
than the Bank, shall, by virtue of the provisions of this Agreement, have any interest in such funds.

 

7.          Change of Control

 

a.          In
the event of the Executive’s Separation from Service (for any reason other than for Cause) within two years after a “Change
in Control” of the Bank, Executive shall be entitled to the Normal Retirement Benefit, which shall be payable in equal monthly
installments, commencing on the first month following such Separation from Service, and continuing for a period of fifteen (15)
years.

 

b.          As
used herein, the term “Change of Control” shall mean: (1) a change in ownership of the Bank under paragraph (i) below,
or (2) a change in effective control of the Bank under paragraph (ii) below, or (3) a change in the ownership of a substantial
portion of the assets of the Bank under paragraph (iii) below.

 

(i)          Change
in the ownership of the Bank. A change in the ownership of the Bank shall occur on the date that any one person, or more than one
person acting as a group (as defined in Treasury Regulation 1.409A-3(i)(5)(v)(B)), acquires ownership of stock of the corporation
that, together with stock held by such person or group, constitutes more than 50% of the total fair market value or total voting
power of the stock of such corporation; or

 

(ii)         Change
in the effective control of the Bank. A change in the effective control of the Bank shall occur on the date that either (1) any
one person, or more than one person acting as a group (as defined in Treasury Regulation 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 possessing 30% or more of the total voting power of the stock of the
Bank; or (2) a majority of members of Bank’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 corporation’s board of directors prior to the
date of the appointment or election, provided that this sub-section (2) is inapplicable where a majority shareholder of the Bank
is another corporation; or

 

(iii)        Change
in the ownership of a substantial portion of the Bank’s assets. A change in the ownership of a substantial portion of the
Bank’s assets shall occur on the date that any one person, or more than one person acting as a group (as defined in Treasury
Regulation 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 that have a total gross fair market value equal to or more than 40%
of the total gross fair market value of all of the assets of the corporation immediately prior to such acquisition or acquisitions.
For this purpose, gross fair market value means the value of the assets of the corporation, or the value of the assets being disposed
of, determined without regard to any liabilities associated with such assets. There is no Change in Control event under this paragraph
(iii) when there is a transfer to an entity that is controlled by the shareholders of the transferring corporation immediately
after the transfer.

 

(iv)        For
all purposes hereunder, the definition of Change in Control shall be construed to be consistent with the requirements of Treasury
Regulation 1.409A-3(i)(5), except to the extent modified herein. Notwithstanding anything herein to the contrary, the Bank’s
reorganization and conversion as a stock bank subsidiary of a mutual holding company or stock holding company and concurrent stock
offering, if any, shall not be considered a Change in Control. However, in such event, the items above under sub-sections (i)
through (iii) shall also apply to a Change in Control of the mutual or stock holding company.

 

8.          Administration of Agreement

 

This
Agreement is administered and operated by the Board of Directors of the Bank or any committee appointed by the Board of Directors
(the “Committee”), which has the exclusive discretionary authority and power to determine eligibility for benefits
and to construe the terms and provisions of the Agreement, to determine questions of fact and law arising under the Agreement,
to direct disbursements pursuant to the Agreement and to exercise all other powers specified herein or which may be implied from
the provisions hereof. The Committee may adopt such rules for the administration of the Agreement as it may deem appropriate. All
interpretations and determinations of the Committee shall be final and binding upon all parties and persons affected thereby.

 

The
Executive claiming a benefit, requesting an interpretation or ruling under the Agreement, or requesting information under the Agreement
shall present the request in writing to the Committee, which shall respond in writing within 30 days.

 

If
the claim or request is denied, the written notice of denial shall state:

 

     

     

    

 

(a)          The
reasons for denial, with specific reference to the Agreement provisions on which the denial is based.

 

(b)          A
description of any additional material or information required and an explanation of why it is necessary.

 

(c)          An
explanation of the Agreement’s claim review procedure.

 

If
the Executive’ claim or request is denied or who has not received a response within 30 days may request review by notice
given in writing to the Committee. The claim or request shall be reviewed by the Committee who may, but shall not be required to,
grant the Executive a hearing. On review, the Executive may have representation, examine pertinent documents, and submit issues
and comments in writing.

 

The
decision on review shall normally be made within 60 days. If an extension of time is required for a hearing or other special circumstances,
the Executive shall be notified and the time limit shall be 120 days. The decision shall be in writing and shall state the reasons
and the relevant Agreement provisions.

 

9.          Arbitration

 

a.           If
the Executive continues to dispute the benefit denial, the dispute shall be settled by arbitration in accordance with rules of
the American Arbitration Association, and judgment upon the award rendered by an arbitrator may be entered in any court having
jurisdiction thereof. The arbitrators in any such controversy shall have no authority or power to modify or alter any express condition
or provision of this Agreement or to render an award which has the effect of altering or modifying any express condition or provision
hereof.

 

b.           The
parties hereby submit themselves and consent to the jurisdiction of the courts of the State of New York and further consent that
any process or notice of motion, or other application of the court, or any judge thereof, may be served outside the State of New
York by certified mail or by personal service provided that a reasonable time for appearance is allowed.

 

10.        Taxes

 

a.           The
Bank shall have the right to deduct from all amounts to be paid by the Bank to the Executive under the Agreement any taxes required
by law to be withheld.

 

b.           The
Executive should consult his own legal and tax advisors concerning personal tax consequences of being eligible for, and receiving
benefit payments under, the Agreement.

 

c.           This
Agreement shall permit the acceleration of the time or schedule of a payment to pay employment-related taxes as permitted under
Treasury regulation Section 1.409A-3(j) or to pay any taxes that may become due at any time that the arrangement fails to meet the
requirements of Code Section 409A and the regulations and other guidance promulgated thereunder. In the latter case, such payments
shall not exceed the amount required to be included in income as the result of the failure to comply with the requirements of Code
Section 409A.

 

     

     

    

 

11.       Plan Amendment or Termination

 

a.          Plan
Amendment.    This Agreement may be amended from time to time in the sole discretion of the Bank, but no such amendment shall reduce
the accrued benefit of the Executive as of the date of the amendment. In addition, no amendment shall be effective which shall
violate Code Section 409A or cause the Executive to incur an excise tax thereunder.

 

b.          Partial
Termination.  The Board may partially terminate the Agreement by freezing future accruals if, in its judgment, the tax, accounting,
or other effects of the continuance of the Agreement, or potential payments thereunder, would not be in the best interests of the
Bank. In such circumstance, the Executive’s benefit earned hereunder (i.e., his Accrued Benefit, Early Retirement Benefit
or Normal Retirement Benefit, as applicable) as of the date of such partial termination shall be payable at the time and in the
manner as set forth above in this Agreement.

 

c.          Complete
Termination.   Subject to the requirements of Code Section 409A, in the event of complete termination of the Plan (comprised of this
Agreement and other substantially similar agreements, as the term “Plan” is defined for purposes of Code Section 409A),
the Plan shall cease to operate and the Bank shall pay to the Executive the benefit set forth in item (i), (ii) or (iii) below,
as applicable. Such complete termination of the Agreement shall occur only under the following circumstances and conditions:

 

(i)          The
Bank may terminate the Plan within 12 months of a corporate dissolution taxed under Code Section 331, or with approval of a bankruptcy
court pursuant to 11 U.S.C. §503(b)(1)(A), provided that the amounts deferred under the Plan are included in the Executive’s
gross income in the latest of (A) the calendar year in which the Plan terminates; (B) the calendar year in which the amount is
no longer subject to a substantial risk of forfeiture; or (C) the first calendar year in which the payment is administratively
practicable. In such case, Executive shall be entitled to either his Accrued Benefit (if termination occurs prior to Early Retirement
Age), his Early Retirement Benefit (if complete termination occurs on or after Early Retirement Age but before Normal Retirement
Age) or his Normal Retirement Benefit (if complete termination occurs after Normal Retirement Age).

 

(ii)         The
Bank may terminate the Plan by irrevocable action within the 30 days preceding or 12 months following a Change in Control, provided
that the Plan shall only be treated as terminated if all substantially similar arrangements sponsored by the Bank are terminated
so that the Executive and all participants under substantially similar arrangements are required to receive all amounts of compensation
deferred under the terminated arrangements within 12 months of the date of the termination of the arrangements. Any such termination
will comply with the requirements of Code Section 409A. In the event such complete termination occurs, Executive shall be entitled
to the actuarial equivalent of the benefit payable under Section 7(a) hereof, payable in the time frame set forth in this Section
11.c.(ii).

 

(iii)        The
Bank may terminate the Plan provided that (A) the termination and liquidation does not occur proximate to a downturn in the financial
health of the Bank or Company, (B) all arrangements sponsored by the Bank that would be aggregated with this

 

     

     

    

 

Agreement
under Treasury Regulations Section 1.409A-1(c) if the Executive covered by this Agreement was also covered by any of those other
arrangements are also terminated; (C) no payments other than payments that would be payable under the terms of the arrangement
if the termination had not occurred are made within 12 months of the termination of the arrangement; (D) all payments are made
within 24 months of the termination of the arrangements; and (E) the Bank does not adopt a new arrangement that would be aggregated
with any terminated arrangement under Treasury Regulations Section 1.409A-1(c) if the Executive participated in both arrangements,
at any time within three years following the date of termination of the arrangement. In the case of a termination under this Section
11.c.(iii) prior to Executive’s attainment of Early Retirement Age, the Executive shall be entitled to his Accrued Benefit.
If termination occurs after Early Retirement Age, Executive shall be entitled to the actuarial equivalent of his Early Retirement
Benefit or Normal Retirement Benefit, as applicable (depending on Executive’s age at the time of complete termination), payable
in accordance with this Section 11.c.(iii).

 

12.        Miscellaneous Provisions

 

a.          This
Agreement shall be binding upon and inure to the benefit of any successor of the Bank and any such successor shall be deemed substituted
for the Bank under the terms of this Agreement.

 

b.          This
instrument contains the entire Agreement of the parties. The Bank shall have the power to suspend or terminate this Agreement in
whole or in part at any time, and from time to time to extend, modify, amend, revise or terminate this Agreement in such respects
as the Bank may deem advisable; provided that no such extension, modification, amendment, revision or termination shall deprive
the Executive or any beneficiary designated by the Executive of the vested portion of any benefit under this Agreement.

 

c.          This
Agreement shall be governed and construed in accordance with the law of the State of New York.

 

d.          Notwithstanding
anything in this Agreement to the contrary, if Executive is a Specified Employee (as defined in Section 409A of the Internal Revenue
Code (“Code”)) of a publicly traded company at the time of retirement or other Separation from Service (other than
due to death or Disability) and is entitled to a benefit under Section 1, 2 or 7 of this Agreement, then solely to the extent necessary
to avoid penalties under Code Section 409A, the first payment shall commence on the first day of the seventh month following Executive’s
such retirement or Separation from Service. In such case the first payment shall include all payments withheld until the first
day of the seventh month. All remaining payments shall be made as previously scheduled.

 

e.           Notwithstanding
anything else in this Agreement to the contrary, Executive’s employment shall not be deemed to have been terminated unless
and until the Executive has a Separation from Service, as defined in this Section 12.e. As such, “Separation from Service”
means the Executive’s death, retirement or other Separation from Service with the Bank within the meaning of Code Section
409A. No Separation from Service shall be deemed to occur due to military leave, sick leave or other bona fide leave of absence
if the period of such leave does not exceed six months or, if longer, so long as the Executive’s right to reemployment is
provided by

 

     

     

    

 

law
or contract. If the leave exceeds six months and the Executive’s right to reemployment is not provided by law or by contract,
then the Executive shall have a Separation from Service on the first date immediately following such six-month period. Whether
a Separation from Service has occurred is determined based on whether the facts and circumstances indicate that the Bank and Executive
reasonably anticipated that no further services would be performed after a certain date or that the level of bona fide services
the employee would perform after such date (whether as an employee or as an independent contractor) would permanently decrease
to an amount less than 50% of the average level of bona fide services performed over the immediately preceding 36 months (or such
lesser period of time in which the Executive performed services for the Bank). The determination of whether the Executive has had
a Separation from Service shall be made by applying the presumptions set forth in the Treasury Regulations under Code Section 409A.

 

f.            Acceleration
of Payments. Except as specifically permitted herein or in other sections of this Agreement, no acceleration of the time or schedule
of any payment may be made hereunder. Notwithstanding the foregoing, payments may be accelerated hereunder by the Bank, in accordance
with the provisions of Treasury Regulation Section 1.409A-3(j)(4) and any subsequent guidance issued by the United States Treasury
Department. Accordingly, payments may be accelerated, in accordance with requirements and conditions of the Treasury Regulations
(or subsequent guidance) in the following circumstances: (i) as a result of certain domestic relations orders; (ii) in compliance
with ethics agreements with the Federal government; (iii) in compliance with ethics laws or conflicts of interest laws; (iv) in
limited cash-outs (but not in excess of the limit under Code Section 402(g)(1)(B)); (v) in the case of certain distributions to
avoid a non-allocation year under Code Section 409(p); (vi) to apply certain offsets in satisfaction of a debt of the Executive
to the Bank; (vii) in satisfaction of certain bona fide disputes between the Executive and the Bank; or (viii) for any other purpose
set forth in the Treasury Regulations and subsequent guidance.

 

g.           12
U.S.C. § 1828(k). Any payments made to the Executive pursuant to this Plan or otherwise are subject to and conditioned upon
compliance with 12 U.S.C. § 1828(k) and 12 C.F.R. Part 359 Golden Parachute
and Indemnification Payments or any other rules and regulations promulgated thereunder.

 

     

     

    

 

IN
WITNESS WHEREOF, the parties have hereunto set their hands and seals, the Bank by it duly authorized officer, on the day and
year first above written.

 

	 	EXECUTIVE
	 	 
	 	/s/ Joseph Vitale
	 	Joseph Vitale
	 	 
	 	SENECA FEDERAL SAVINGS AND LOAN ASSOCIATION
	 	 
	 	/s/ George Sageer
	 	Bank Signature

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00272-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00272-of-00352.parquet"}]]