Document:

Exhibit

INDEMNIFICATION AGREEMENT
This Indemnification Agreement (“Agreement”) is made as of May 25, 2016, by and between Spark Energy, Inc., a Delaware corporation (the “Corporation”), and Jason Garrett (“Indemnitee”).
RECITALS:
WHEREAS, directors, officers and other persons in service to corporations or business enterprises are subjected to expensive and time-consuming litigation relating to, among other things, matters that traditionally would have been brought only against the Corporation or business enterprise itself;
WHEREAS, highly competent persons have become more reluctant to serve as directors, officers or in other capacities unless they are provided with adequate protection through insurance and adequate indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the corporation;
WHEREAS, the Board of Directors of the Corporation (the “Board”) has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best interests of the Corporation and its stockholders and that the Corporation should act to assure such persons that there will be increased certainty of such protection in the future;
WHEREAS, (i) the Amended and Restated Bylaws of the Corporation (as may be amended, the “Bylaws”) require indemnification of the officers and directors of the Corporation, (ii) Indemnitee may also be entitled to indemnification pursuant to the General Corporation Law of the State of Delaware (“DGCL”) and (iii) the Bylaws and the DGCL expressly provide that the indemnification provisions set forth therein are not exclusive and thereby contemplate that contracts may be entered into between the Corporation and members of the Board, officers and other persons with respect to indemnification;
WHEREAS, this Agreement is a supplement to and in furtherance of the Bylaws and the Amended and Restated Certificate of Incorporation of the Corporation (as may be amended, the “Certificate of Incorporation”) and any resolutions adopted pursuant thereto, and shall not be deemed a substitute therefore, nor to diminish or abrogate any rights of Indemnitee thereunder; and
WHEREAS, (i) Indemnitee does not regard the protection available under the Bylaws and insurance as adequate in the present circumstances, (ii) Indemnitee may not be willing to serve or continue to serve as a director or officer of the Corporation without adequate protection, (iii) the Corporation desires Indemnitee to serve in such capacity, and (iv) Indemnitee is willing to serve, continue to serve and to take on additional service for or on behalf of the Corporation on the condition that he be so indemnified.
AGREEMENT:
NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Corporation and Indemnitee do hereby covenant and agree as follows:
Section 1.    Definitions. (a) As used in this Agreement:
“Affiliate” of any specified Person shall mean any other Person controlling, controlled by or under common control with such specified Person.
“Corporate Status” describes the status of a person who is or was a director, officer, employee or agent of (i) the Corporation or (ii) any other corporation, limited liability company, partnership or joint venture, trust, employee benefit plan or other enterprise which such person is or was serving at the request of the Corporation.
“Disinterested Director” shall mean a director of the Corporation who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.

“Enterprise” shall mean the Corporation and any other corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise of which Indemnitee is or was serving at the request of the Corporation as a director, officer, employee, agent or fiduciary.
“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.
“Expenses” shall mean all reasonable costs, expenses, fees and charges, including, without limitation, attorneys’ fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, or otherwise participating in, a Proceeding. Expenses also shall include, without limitation, (i) expenses incurred in connection with any appeal resulting from, incurred by Indemnitee in connection with, arising out of, or in respect of or relating to, any Proceeding, including, without limitation, the premium, security for, and other costs relating to any cost bond, supersedes bond, or other appeal bond or its equivalent, (ii) for purposes of Section 12(d) hereof only, expenses incurred by Indemnitee in connection with the interpretation, enforcement or defense of Indemnitee’s rights under this Agreement, by litigation or otherwise, (iii) any federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement, and (iv) any interest, assessments or other charges in respect of the foregoing. “Expenses” shall not include “Liabilities.”
“Indemnity Obligations” shall mean all obligations of the Corporation to Indemnitee under this Agreement, including the Corporation’s obligations to provide indemnification to Indemnitee and advance Expenses to Indemnitee under this Agreement.
“Independent Counsel” shall mean a law firm of fifty (50) or more attorneys, or a member of a law firm of fifty (50) or more attorneys, that is experienced in matters of corporation law and neither presently is, nor in the past five (5) years has been, retained to represent: (i) the Corporation or Indemnitee in any matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder; provided, however, that the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Corporation or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.
“Liabilities” shall mean all claims, liabilities, damages, losses, judgments, orders, fines, penalties and other amounts payable in connection with, arising out of, or in respect of or relating to any Proceeding, including, without limitation, amounts paid in settlement in any Proceeding and all costs and expenses in complying with any judgment, order or decree issued or entered in connection with any Proceeding or any settlement agreement, stipulation or consent decree entered into or issued in settlement of any Proceeding.
“Person” shall mean any individual, corporation, partnership, limited partnership, limited liability company, trust, governmental agency or body or any other legal entity.
“Proceeding” shall mean any threatened, pending or completed action, claim, suit, arbitration, alternate dispute resolution mechanism, formal or informal hearing, inquiry or investigation, litigation, inquiry, administrative hearing or any other actual, threatened or completed judicial, administrative or arbitration proceeding (including, without limitation, any such proceeding under the Securities Act of 1933, as amended, or the Exchange Act or any other federal law, state law, statute or regulation), whether brought in the right of the Corporation or otherwise, and whether of a civil, criminal, administrative or investigative nature, in each case, in which Indemnitee was, is or will be, or is threatened to be, involved as a party, witness or otherwise by reason of the fact that Indemnitee is or was a director or officer of the Corporation, by reason of any actual or alleged action taken by Indemnitee or of any action on Indemnitee’s part while acting as director or officer of the Corporation, or by reason of the fact that he is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, limited liability company, partnership, joint venture, trust or other enterprise, in each case whether or not serving in such 

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capacity at the time any liability or expense is incurred for which indemnification, reimbursement, or advancement can be provided under this Agreement.
(b)    For the purpose hereof, references to “fines” shall include any excise tax assessed with respect to any employee benefit plan; references to “serving at the request of the Corporation” shall include any service as a director, officer, employee or agent of the Corporation which imposes duties on, or involves services by, such director, officer, employee or agent with respect to an employee benefit plan, its participants or beneficiaries; and a Person who acted in good faith and in a manner he reasonably believed to be in the best interests of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner “not opposed to the best interests of the Corporation” as referred to in this Agreement.
Section 2.    Indemnity in Third-Party Proceedings. The Corporation shall indemnify and hold harmless Indemnitee, to the fullest extent permitted by applicable law, from and against all Liabilities and Expenses suffered or reasonably incurred (and, in the case of retainers, reasonably expected to be incurred) by Indemnitee or on Indemnitee’s behalf in connection with any Proceeding (other than any Proceeding brought by or in the right of the Corporation to procure a judgment in its favor), or any claim, issue or matter therein.
Section 3.    Indemnity in Proceedings by or in the Right of the  Corporation. The Corporation shall indemnify and hold harmless Indemnitee, to the fullest extent permitted by applicable law, from and against all Liabilities and Expenses suffered or incurred by Indemnitee or on Indemnitee’s behalf in connection with any Proceeding brought by or in the right of the Corporation to procure a judgment in its favor, or any claim, issue or matter therein. No indemnification for Liabilities and Expenses shall be made under this Section 3 in respect of any claim, issue or matter as to which Indemnitee shall have been finally adjudged by a court to be liable to the Corporation, unless and only to the extent that the Delaware Court of Chancery or any court in which the Proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to such indemnification.
Section 4.    Indemnification for Expenses of a Party Who is Wholly or Partly Successful. Notwithstanding any other provisions of this Agreement, and without limiting the rights of Indemnitee under any other provision hereof, including any rights to indemnification pursuant to Sections 2 or 3 hereof, to the fullest extent permitted by applicable law, to the extent that Indemnitee is successful, on the merits or otherwise, in any Proceeding or in defense of any claim, issue or matter therein, in whole or in part, the Corporation shall indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with each successfully resolved Proceeding, claim, issue or matter. For purposes of this Section 4 and without limitation, the termination of any Proceeding or claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.
Section 5.    Indemnification For Expenses of a Witness. Notwithstanding any other provision of this Agreement, to the fullest extent permitted by applicable law and to the extent that Indemnitee is, by reason of Indemnitee’s Corporate Status, a witness or otherwise a participant in any Proceeding to which Indemnitee is not a party, Indemnitee shall be indemnified against all Expenses suffered or incurred (or, in the case of retainers, reasonably expected to be incurred) by Indemnitee or on Indemnitee’s behalf in connection therewith.
Section 6.    Additional Indemnification. Notwithstanding any limitation in Sections 2, 3 or 4 hereof, the Corporation shall indemnify Indemnitee to the fullest extent permitted by applicable law if Indemnitee is a party to or threatened to be made a party to any Proceeding (including a Proceeding by or in the right of the Corporation to procure a judgment in its favor) against all Liabilities and Expenses suffered or reasonably incurred by Indemnitee in connection with such Proceeding, including but not limited to:
(a)    the fullest extent permitted by the provision of the DGCL that authorizes or contemplates additional indemnification by agreement, or the corresponding provision of any amendment to or replacement of the DGCL; and
(b)    the fullest extent authorized or permitted by any amendments to or replacements of the DGCL adopted after the date of this Agreement that increase the extent to which a corporation may indemnify its officers and directors.

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Section 7.    Exclusions. Notwithstanding any provision in this Agreement, the Corporation shall not be obligated under this Agreement to indemnify or hold harmless Indemnitee:
(a)    for which payment has actually been made to or on behalf of Indemnitee under any insurance policy obtained by the Corporation except with respect to any excess beyond the amount paid under such insurance policy;
(b)    for an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Corporation within the meaning of Section 16(b) of the Exchange Act or similar provisions of state statutory law or common law;
(c)    except as provided in Section 12(d) of this Agreement, in connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Corporation or its directors, officers, employees or other indemnitees, unless (i) the Board authorized the Proceeding (or any part of any Proceeding) prior to its initiation or (ii) the Corporation provides the indemnification, in its sole discretion, pursuant to the powers vested in the Corporation under applicable law; or
(d)    if a final decision by a court having jurisdiction in the matter shall determine that such indemnification is not lawful.
Section 8.    Advancement. In accordance with the pre-existing requirements of the Bylaws, and notwithstanding any provision of this Agreement to the contrary, the Corporation shall advance, to the extent not prohibited by applicable law, the Expenses reasonably incurred by Indemnitee in connection with any Proceeding, and such advancement shall be made within thirty (30) days after the receipt by the Corporation of a statement or statements requesting such advances from time to time, whether prior to or after final disposition of any Proceeding. Advances shall be unsecured and interest free. Advances shall be made without regard to Indemnitee’s ability to repay the Expenses and without regard to Indemnitee’s ultimate entitlement to indemnification under the other provisions of this Agreement. Advances shall include any and all Expenses reasonably incurred pursuing an action to enforce this right of advancement, including Expenses incurred preparing and forwarding statements to the Corporation to support the advances claimed. Indemnitee shall qualify for advances upon the execution and delivery to the Corporation of this Agreement, which shall constitute an undertaking providing that Indemnitee undertakes to repay the amounts advanced to the extent that it is ultimately determined that Indemnitee is not entitled to be indemnified by the Corporation. This Section 8 shall not apply to any claim made by Indemnitee for which indemnity is excluded pursuant to Section 7 hereof.
Section 9.    Procedure for Notification and Defense of Claim.
(a)    Indemnitee shall promptly notify the Corporation in writing of any Proceeding with respect to which Indemnitee intends to seek indemnification or advancement hereunder following the receipt by Indemnitee of written notice thereof. The written notification to the Corporation shall include a description of the nature of the Proceeding and the facts underlying the Proceeding. To obtain indemnification under this Agreement, Indemnitee shall submit to the Corporation a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification following the final disposition of such Proceeding. Any delay or failure by Indemnitee to notify the Corporation hereunder will not relieve the Corporation from any liability which it may have to Indemnitee hereunder or otherwise than under this Agreement, and any delay or failure in so notifying the Corporation shall not constitute a waiver by Indemnitee of any rights under this Agreement. The Corporate Secretary of the Corporation shall, promptly upon receipt of such a request for indemnification, advise the Board in writing that Indemnitee has requested indemnification.
(b)    In the event Indemnitee is entitled to indemnification and/or advancement with respect to any Proceeding, Indemnitee may, at Indemnitee’s option, (i) retain counsel selected by Indemnitee and approved by the Corporation to defend Indemnitee in such Proceeding, at the sole expense of the Corporation (which approval shall not be unreasonably withheld, conditioned or delayed), or (ii) have the Corporation assume the defense of Indemnitee in such Proceeding, in which case the Corporation shall assume the defense of such Proceeding with counsel selected by the Corporation and approved by Indemnitee (which approval shall not be unreasonably withheld, conditioned or 

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delayed) within ten (10) days of the Corporation’s receipt of written notice of Indemnitee’s election to cause the Corporation to do so. If the Corporation is required to assume the defense of any such Proceeding, it shall engage legal counsel for such defense, and the Corporation shall be solely responsible for all fees and expenses of such legal counsel and otherwise of such defense. Such legal counsel may represent both Indemnitee and the Corporation (and any other party or parties entitled to be indemnified by the Corporation with respect to such matter) unless, in the reasonable opinion of legal counsel to Indemnitee, there is a conflict of interest between Indemnitee and the Corporation (or any other such party or parties) or there are legal defenses available to Indemnitee that are not available to the Corporation (or any such other party or parties). Notwithstanding either party’s assumption of responsibility for defense of a Proceeding, each party shall have the right to engage separate counsel at its own expense. The party having responsibility for defense of a Proceeding shall provide the other party and its counsel with all copies of pleadings and material correspondence relating to the Proceeding. Indemnitee and the Corporation shall reasonably cooperate in the defense of any Proceeding with respect to which indemnification is sought hereunder, regardless of whether the Corporation or Indemnitee assumes the defense thereof. Indemnitee may not settle or compromise any Proceeding without the prior written consent of the Corporation, which consent shall not be unreasonably withheld, conditioned or delayed. The Corporation may not settle or compromise any Proceeding without the prior written consent of Indemnitee.
Section 10.    Procedure Upon Application for Indemnification.
(a)    Upon written request by Indemnitee for indemnification pursuant to Section 9(a) hereof, if any determination by the Corporation is required by applicable law with respect to Indemnitee’s entitlement thereto, such determination shall be made (i) if Indemnitee shall request such determination be made by Independent Counsel, by Independent Counsel, and (ii) in all other circumstances, (A) by a majority vote of the Disinterested Directors, even though less than a quorum of the Board, (B) by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than a quorum of the Board, (C) if there are no such Disinterested Directors or, if such Disinterested Directors so direct, by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee, or (D) if so directed by the Board, by the stockholders of the Corporation; and, if it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten (10) days after such determination. Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination. Any Expenses incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Corporation (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Corporation hereby indemnifies and agrees to hold Indemnitee harmless therefrom. The Corporation will not deny any written request for indemnification hereunder made in good faith by Indemnitee unless a determination as to Indemnitee’s entitlement to such indemnification described in this Section 10(a) has been made. The Corporation agrees to pay the reasonable fees and expenses of the Independent Counsel referred to above and to fully indemnify such counsel against any and all Liabilities and Expenses arising out of or relating to this Agreement or its engagement pursuant hereto.
(b)    In the event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 10(a) hereof, (i) the Independent Counsel shall be selected by the Corporation within ten (10) days of the Submission Date (the cost of such Independent Counsel to be paid by the Corporation), (ii) the Corporation shall give written notice to Indemnitee advising it of the identity of the Independent Counsel so selected and (iii) Indemnitee may, within ten (10) days after such written notice of selection shall have been given, deliver to the Corporation Indemnitee’s written objection to such selection. Such objection by Indemnitee may be asserted only on the ground that the Independent Counsel selected does not meet the requirements of “Independent Counsel” as defined in this Agreement. If such written objection is made and substantiated, the Independent Counsel selected shall not serve as Independent Counsel unless and until Indemnitee withdraws the objection or a court has determined that such objection is without merit. Absent a timely objection, the person so selected shall act as Independent Counsel. If no Independent Counsel shall have been selected and not objected to before the later of (i) thirty (30) days after the later of submission by Indemnitee of a written request for indemnification pursuant to Section 10(a) hereof (the “Submission Date”) and (ii) ten (10) days after the final disposition of the Proceeding, each 

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of the Corporation and Indemnitee shall select a law firm or member of a law firm meeting the qualifications to serve as Independent Counsel, and such law firms or members of law firms shall select the Independent Counsel. Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 12(a) of this Agreement, Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).
Section 11.    Presumptions and Effect of Certain Proceedings.
(a)    In making a determination with respect to entitlement to indemnification hereunder, the person, persons or entity making such determination shall, to the fullest extent not prohibited by applicable law, presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 9(a) of this Agreement, and the Corporation shall, to the fullest extent not prohibited by applicable law, have the burden of proof to overcome that presumption in connection with the making by any person, persons or entity of any determination contrary to that presumption. Neither the failure of the Corporation (including by its directors or independent legal counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Corporation (including by its directors or independent legal counsel) that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.
(b)    Subject to Section 12(e) hereof, if the person, persons or entity empowered or selected under Section 10 of this Agreement to determine whether Indemnitee is entitled to indemnification shall not have made a determination within sixty (60) days after receipt by the Corporation of the request therefore, the requisite determination of entitlement to indemnification shall, to the fullest extent not prohibited by applicable law, be deemed to have been made and Indemnitee shall be entitled to such indemnification, absent a prohibition of such indemnification under applicable law; provided, however, that such 60-day period may be extended for a reasonable time, not to exceed an additional thirty (30) days, if (i) the determination is to be made by Independent Counsel and Indemnitee objects to the Corporation’s selection of Independent Counsel and (ii) the Independent Counsel ultimately selected requires such additional time for the obtaining or evaluating of documentation or information relating thereto; provided further, however, that such 60-day period may also be extended for a reasonable time, not to exceed an additional sixty (60) days, if the determination of entitlement to indemnification is to be made by the stockholders of the Corporation.
(c)    The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Corporation or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that Indemnitee’s conduct was unlawful.
(d)    Reliance as Safe Harbor. For purposes of any determination of good faith, Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is based on the records or books of account of the Enterprise, including financial statements, or on information supplied to Indemnitee by the officers of the Enterprise in the course of their duties, or on the advice of legal counsel for the Enterprise or on information or records given or reports made to the Enterprise by an independent certified public accountant or by an appraiser or other expert selected with the reasonable care by the Enterprise. The provisions of this Section 11(d) shall not be deemed to be exclusive or to limit in any way the other circumstances in which Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement.
(e)    Actions of Others. The knowledge or actions, or failure to act, of any director, officer, agent or employee of the Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.
Section 12.    Remedies of Indemnitee.

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(a)    Subject to Section 12(e) hereof, in the event that (i) a determination is made pursuant to Section 10 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement is not timely made pursuant to Section 8 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 10(a) of this Agreement within ninety (90) days after receipt by the Corporation of the request for indemnification, (iv) payment of indemnification is not made pursuant to Sections 4 or 5 or the last sentence of Section 10(a) of this Agreement within ten (10) days after receipt by the Corporation of a written request therefor, (v) payment of indemnification pursuant to Sections 2, 3 or 6 of this Agreement is not made within ten (10) days after a determination has been made that Indemnitee is entitled to indemnification, or (vi) in the event that the Corporation or any other Person takes or threatens to take any action to declare this Agreement void or unenforceable, or institutes any litigation or other action or proceeding designed to deny, or to recover from, Indemnitee the benefits provided or intended to be provided to Indemnitee hereunder, Indemnitee shall be entitled to an adjudication by a court of Indemnitee’s entitlement to such indemnification or advancement. Alternatively, Indemnitee, at Indemnitee’s option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association. The Corporation shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration.
(b)    In the event that a determination shall have been made pursuant to Section 10(a) of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 12 shall be conducted in all respects as a de novo trial, or arbitration, on the merits and Indemnitee shall not be prejudiced by reason of that adverse determination. In any judicial proceeding or arbitration commenced pursuant to this Section 12 the Corporation shall have the burden of proving Indemnitee is not entitled to indemnification or advancement, as the case may be.
(c)    If a determination shall have been made pursuant to Section 10(a) of this Agreement that Indemnitee is entitled to indemnification, the Corporation shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 12, absent a prohibition of such indemnification under applicable law.
(d)    The Corporation shall, to the fullest extent not prohibited by applicable law, be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 12 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Corporation is bound by all the provisions of this Agreement. It is the intent of the Corporation that Indemnitee not be required to incur Expenses associated with the interpretation, enforcement or defense of Indemnitee’s rights under this Agreement by litigation or otherwise because the cost and expense thereof would substantially detract from the benefits intended to be extended to Indemnitee hereunder. The Corporation shall indemnify Indemnitee against any and all such Expenses and, if requested by Indemnitee, shall (within ten (10) days after receipt by the Corporation of a written request therefore) advance, to the extent not prohibited by applicable law, such Expenses to Indemnitee, which are incurred by Indemnitee in connection with any action brought by Indemnitee for indemnification or advancement from the Corporation under this Agreement or under any directors’ and officers’ liability insurance policies maintained by the Corporation, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification, advancement or insurance recovery, as the case may be.
(e)    Notwithstanding anything in this Agreement to the contrary, no determination as to entitlement to indemnification under this Agreement shall be required to be made prior to the final disposition of the Proceeding; provided that, in absence of any such determination with respect to such Proceeding, the Corporation shall advance Expenses with respect to such Proceeding.
Section 13.    Non-Exclusivity; Survival of Rights; Insurance; Subrogation.
(a)    The rights of indemnification and to receive advancement as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Certificate of Incorporation, the Bylaws, any agreement, a vote of stockholders or a resolution of directors, or otherwise. No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in Indemnitee’s Corporate Status prior to such amendment, alteration or repeal. To the extent that a change in Delaware law, whether 

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by statute or judicial decision, permits greater indemnification or advancement than would be afforded currently under the Bylaws or this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.
(b)    The Corporation hereby acknowledges that Indemnitee may have certain rights to indemnification, advancement and insurance provided by one or more Persons with whom or which Indemnitee may be associated. The Corporation hereby acknowledges and agrees that (i) the Corporation shall be the indemnitor of first resort with respect to any Proceeding, Expense, Liability or matter that is the subject of the Indemnity Obligations, (ii) the Corporation shall be primarily liable for all Indemnity Obligations and any indemnification afforded to Indemnitee in respect of any Proceeding, Expense, Liability or matter that is the subject of Indemnity Obligations, whether created by applicable law, organizational or constituent documents, contract (including this Agreement) or otherwise, (iii) any obligation of any other Persons with whom or which Indemnitee may be associated to indemnify Indemnitee or advance Expenses or Liabilities to Indemnitee in respect of any Proceeding shall be secondary to the obligations of the Corporation hereunder, (iv) the Corporation shall be required to indemnify Indemnitee and advance Expenses or Liabilities to Indemnitee hereunder to the fullest extent provided herein without regard to any rights Indemnitee may have against any other Person with whom or which Indemnitee may be associated or insurer of any such Person and (v) the Corporation irrevocably waives, relinquishes and releases any other Person with whom or which Indemnitee may be associated from any claim of contribution, subrogation or any other recovery of any kind in respect of amounts paid by the Corporation hereunder. In the event any other Person with whom or which Indemnitee may be associated or their insurers advances or extinguishes any liability or loss which is the subject of any Indemnity Obligation owed by the Corporation or payable under any Corporation insurance policy, the payor shall have a right of subrogation against the Corporation or its insurer or insurers for all amounts so paid which would otherwise be payable by the Corporation or its insurer or insurers under this Agreement. In no event will payment of an Indemnity Obligation by any other Person with whom or which Indemnitee may be associated or their insurers affect the obligations of the Corporation hereunder or shift primary liability for any Indemnity Obligation to any other Person with whom or which Indemnitee may be associated. Any indemnification, insurance or advancement provided by any other Person with whom or which Indemnitee may be associated with respect to any Liability arising as a result of Indemnitee’s Corporate Status or capacity as an officer or director of any Person is specifically in excess over any Indemnity Obligation of the Corporation or any collectible insurance (including but not limited to any malpractice insurance or professional errors and omissions insurance) provided by the Corporation under this Agreement.
(c)    To the extent that the Corporation maintains an insurance policy or policies providing liability insurance for directors, officers, employees, or agents of the Corporation or of any other Enterprise, Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any such director, officer, employee or agent under such policy or policies and such policies shall provide for and recognize that the insurance policies are primary to any rights to indemnification, advancement or insurance proceeds to which Indemnitee may be entitled from one or more Persons with whom or which Indemnitee may be associated to the same extent as the Corporation’s indemnification and advancement obligations set forth in this Agreement. If, at the time of the receipt of a notice of a claim pursuant to the terms hereof, the Corporation has director and officer liability insurance in effect, the Corporation shall give prompt notice of the commencement of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Corporation shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies.
(d)    In the event of any payment under this Agreement, the Corporation shall not be subrogated to the rights of recovery of Indemnitee, including rights of indemnification provided to Indemnitee from any other person or entity with whom Indemnitee may be associated; provided, however, that the Corporation shall be subrogated to the extent of any such payment of all rights of recovery of Indemnitee under insurance policies of the Corporation or any of its subsidiaries.

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(e)    The indemnification and contribution provided for in this Agreement will remain in full force and effect regardless of any investigation made by or on behalf of Indemnitee.
Section 14.    Duration of Agreement; Not Employment Contract. This Agreement shall continue until and terminate upon the latest of: (i) ten (10) years after the date that Indemnitee shall have ceased to serve as a director, officer, employee or agent of the Corporation or any other Enterprise and (ii) the date of final termination of any Proceeding then pending in respect of which Indemnitee is granted rights of indemnification or advancement hereunder and of any proceeding commenced by Indemnitee pursuant to Section 12 of this Agreement relating thereto. This Agreement shall be binding upon the Corporation and its successors and assigns and shall inure to the benefit of Indemnitee and Indemnitee’s heirs, executors and administrators. This Agreement shall not be deemed an employment contract between the Corporation (or any of its subsidiaries or any other Enterprise) and Indemnitee. Indemnitee specifically acknowledges that Indemnitee’s employment with the Corporation (or any of its subsidiaries or any other Enterprise), if any, is at will, and Indemnitee may be discharged at any time for any reason, with or without cause, except as may be otherwise provided in any written employment contract between Indemnitee and the Corporation (or any of its subsidiaries or any other Enterprise), other applicable formal severance policies duly adopted by the Board, or, with respect to service as a director of the Corporation, by the Certificate of Incorporation, the Bylaws or the DGCL.
Section 15.    Severability. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by applicable law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.
Section 16.    Enforcement.
(a)    The Corporation expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce Indemnitee to serve as a director, officer, employee or agent of the Corporation, and the Corporation acknowledges that Indemnitee is relying upon this Agreement in serving as a director, officer, employee or agent of the Corporation.
(b)    This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof; provided, however, that this Agreement is a supplement to and in furtherance of the Certificate of Incorporation, the Bylaws and applicable law, and shall not be deemed a substitute therefore, nor diminish or abrogate any rights of Indemnitee thereunder.
Section 17.    Modification and Waiver. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by the parties thereto. No waiver of any of the provisions of this Agreement shall be deemed to be or shall constitute a waiver of any other provision of this Agreement nor shall any waiver constitute a continuing waiver.
Section 18.    Notices. All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been duly given if (a) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, (b) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed, (c) mailed by reputable overnight courier and receipted for by the party to whom said notice or other communication shall have been directed or (d) sent by facsimile transmission, with receipt of oral confirmation that such transmission has been received:
(a)    If to Indemnitee, at such address as Indemnitee shall provide to the Corporation.

9

(b)    If to the Corporation to:
Spark Energy, Inc.
12140 Wickchester Lane, Suite 100
Houston, Texas 77079
Attention: Board of Directors

or to any other address as may have been furnished to Indemnitee by the Corporation.

10

Section 19.    Contribution. To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Corporation, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for Liabilities or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received by the Corporation and Indemnitee as a result of the event(s) and transaction(s) giving cause to such Proceeding; and (ii) the relative fault of the Corporation (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) and transaction(s).
Section 20.    Applicable Law and Consent to Jurisdiction. This Agreement and the legal relations among the parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules. Except with respect to any arbitration commenced by Indemnitee pursuant to Section 12(a) of this Agreement, the Corporation and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Chancery Court of the State of Delaware (the “Delaware Court”), and not in any other state or federal court in the United States of America or any court in any other country, (ii) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising out of or in connection with this Agreement, (iii) waive any objection to the laying of venue of any such action or proceeding in the Delaware Court, and (iv) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum.
Section 21.    Counterparts. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. Only one such counterpart signed by the party against whom enforceability is sought needs to be produced to evidence the existence of this Agreement.
Section 22.    Miscellaneous. Use of the masculine pronoun shall be deemed to include usage of the feminine pronoun where appropriate. The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof

10

IN WITNESS WHEREOF, the parties have caused this Agreement to be signed as of the day and year first above written.
SPARK ENERGY, INC.            INDEMNITEE

By:    /s/ NATHAN KROEKER              By:    /s/ JASON GARRETT    
Name:      Nathan Kroeker            Name:      Jason Garrett    
		
	Title:
	President and Chief Executive Officer            Title:    Executive Vice President, Retail    

Signature Page to Indemnification AgreementExhibit
10.1

Change of
Control AGREEMENT

 

THIS CHANGE OF CONTROL AGREEMENT (this “Agreement”),
is made on this 23rd day of May, 2016, by and between Malvern Federal Savings Bank (the “Company”) and Joseph
Gangemi (the “Employee”).

 

WHEREAS, the Employee serves as an employee
of the Company; and

 

WHEREAS, the Company and the Employee desire
to enter into this Agreement to establish certain protections for the Employee in the event of Employee’s termination of
employment under the circumstances described herein; and

 

NOW, THEREFORE, in consideration of the foregoing
and the mutual covenants and promises contained herein, and intending to be bound hereby, the parties agree as follows:

 

SECTION
1          Definitions. As used herein:

 

1.1.       “Affiliate”
means, with respect to any specified Person, any other Person that directly or indirectly, through one or more intermediaries,
Controls, is Controlled by, or is under common Control with, such specified Person, provided that, in any event, any business in
which the Company has any direct ownership interest shall be treated as an Affiliate of the Company.

 

1.2.       “Base
Salary” means, as of any given date, the annual base rate of salary payable to the Employee by the Company, as then in
effect; provided, however, that in the case of a resignation by the Employee for the Good Reason described in Section 1.9.3,
“Base Salary” will mean the annual base rate of salary payable to the Employee by the Company, as in effect immediately
prior to the reduction giving rise to the Good Reason.

 

1.3.       “Board”
means the Board of Directors of the Company.

 

1.4.       “Cause”
means (i) indictment, commission of, or the entry of a plea of guilty or no contest to, (A) a felony or (B) any crime (other
than a felony) that causes the Company or its Affiliates public disgrace or disrepute, or adversely affects the Company’s
or its Affiliates’ operations or financial performance or the relationship the Company has with its Affiliates, (ii) gross
negligence or willful misconduct with respect to the Company or any of its Affiliates, including, without limitation fraud, embezzlement,
theft or proven dishonesty in the course of his employment; (iii) alcohol abuse or use of controlled substances (other than
prescription drugs taken in accordance with a physician’s prescription); (iv) refusal or failure to perform any material
obligation or fulfill any duty (other than any duty or obligation of the type described in clause (vi) below) to the Company or
any of its Affiliates, which failure or refusal is not cured within 10 days after delivery of written notice thereof; (v) material
breach of any agreement with or duty owed to the Company or any of its Affiliates; or (vi) any breach of any obligation or
duty to the Company or any of its Affiliates (whether arising by statute, common law, contract or otherwise) relating to confidentiality,
noncompetition, nonsolicitation or proprietary rights.

 

     

     

    

 

1.5.       “Change
of Control” means, with respect to the Company: (i) any entity, person or group (within the meaning of Section 13(d)(3)
or Section 14(d)(2) of the Securities Exchange Act of 1934, as amended), other than (1) the Company, (2) any of its Affiliates,
(3) any employee benefit plan (or related trust) sponsored or maintained by the Company or any of its Affiliates or (4) any shareholder
of the Company as of the effective date of this agreement, shall have acquired beneficial ownership of, or shall have acquired
voting control over, 50% or more of the outstanding capital stock entitled to vote in the election of directors of the Company
(on a fully diluted basis), unless the transaction pursuant to which such person, entity or group acquired such beneficial ownership
or control resulted from the original issuance by the Company of shares of its voting capital stock; (ii) a consolidation,
share exchange, reorganization or merger of the Company resulting in the stockholders of the Company immediately prior to such
event not owning at least a majority of the voting power of the resulting entity’s securities outstanding immediately following
such event or, if the resulting entity is a direct or indirect subsidiary of the entity whose securities are issued in such transaction(s),
the voting power of such issuing entity’s securities outstanding immediately following such event; or (iii) the sale or other
disposition of all or substantially all the assets of the Company (other than a transfer of financial assets made in the ordinary
course of business for the purpose of securitization or any similar purpose). For the avoidance of doubt, a transaction or a series
of related transactions will not constitute a Change of Control if such transaction(s) result(s) in the Company, any successor
to the Company, or any successor to the Company’s business, being controlled, directly or indirectly, by the same Person
or Persons who controlled the Company, directly or indirectly, immediately before such transaction(s).

 

1.6.       “Code”
means Internal Revenue Code of 1986, as amended.

 

1.7.       “Control”
(including, with correlative meanings, the terms “Controlled by” and “under common Control with”), as used
with respect to any Person, means the direct or indirect possession of the power to direct or cause the direction of the management
or policies of such Person, whether through the ownership of voting securities, by contract or otherwise.

 

1.8.        “Disability”
means a condition entitling the Employee to benefits under the Company’s long term disability plan, policy or arrangement;
provided, however, that if no such plan, policy or arrangement is then maintained by the Company and applicable to the Employee,
“Disability” will mean the Employee’s inability, by reason of any physical or mental impairment, to substantially
perform Employee’s regular duties to the Company, as determined by the Board in its sole discretion (after affording the
Employee the opportunity to present Employee’s case), which inability is reasonably contemplated to continue for at least
one year from its commencement and at least 90 days from the date of such determination.

 

1.9.       “Good
Reason” means, without the Employee’s prior written consent, any of the following:

 

1.9.1.          a
material diminution in the Employee’s authorities, duties, titles or responsibilities;

 

1.9.2.          a
relocation of the Employee’s principal worksite of more than 50 miles unless such relocation reduces the Employee’s
commute to such worksite;

 

    -2- 

     

    

 

1.9.3.          a
reduction of the Employee’s Base Salary of ten percent (10%) or more; or

 

1.9.4.          any
material breach by the Company of this Agreement.

 

However, the foregoing events or conditions will constitute
Good Reason only if (A) such event or condition occurs during the period beginning ninety (90) days immediately preceding a Change
of Control and ending twelve (12) months thereafter and (B) the Employee provides the Company with written objection to the event
or condition within 60 days following the occurrence thereof, the Company does not reverse or otherwise cure the event or condition
within 30 days of receiving that written objection and the Employee resigns Employee’s employment within 30 days following
the expiration of that cure period.

 

1.10.      “Person”
means any individual, firm, corporation, partnership, limited liability company, trust, joint venture, association, governmental
entity, unincorporated entity or other entity.

 

1.11.      “Release”
means a release substantially identical to the one attached hereto as Exhibit A.

 

SECTION
2Certain Terminations Following a Change of Control.

 

2.1.        Severance
Events Following a Change of Control. If the Employee’s employment with the Company ceases within the twelve (12) month
period following the date of a Change of Control as a result of a termination by the Company without Cause or a resignation by
the Employee for Good Reason, then the Employee will be entitled to the following:

 

2.1.1.        (i)
any Base Salary earned through the effective date of termination that remains unpaid, with any such amounts paid on the first regularly
scheduled payroll date following the effective date of termination; (ii) any bonus payable with respect to any fiscal year which
ended prior to the effective date of the Employee’s termination of employment, which remains unpaid, with such amount paid
in the first regularly scheduled payroll date following the effective date of termination or, if later, at the same time the bonus
would have otherwise been payable to the Employee; and (iii) any expense reimbursement due to the Employee on or prior to the date
of such termination which remains unpaid to the Employee, with any such reimbursement being made promptly following the effective
date of termination (collectively, the “Accrued Obligations”);

 

2.1.2.        a
lump sum cash payment equal to 100% of the Employee’s Base Salary as in effect on such date (without taking into effect any
reduction described in Section 1.9.3 above); and

 

2.1.3.        if
the Employee validly elects to receive continuation coverage under the Company’s group health plan pursuant to the Consolidated
Omnibus Budget Reconciliation Act of 1985 (“COBRA”), reimbursement of the applicable premium otherwise payable
for COBRA continuation coverage for the twelve (12) month period immediately following the effective date of termination to the
extent such premium exceeds the monthly amount charged to active similarly-situated employees of the Company for the same coverage].

 

    -3- 

     

    

 

2.2.        Severance
Events Preceding a Change of Control. If the Employee’s employment with the Company ceases during the ninety (90) days
immediately preceding the date of a Change of Control as a result of a termination by the Company without Cause or a resignation
by the Employee for Good Reason, then the Employee will be entitled to the following:

 

2.2.1.          the
Accrued Obligations;

 

2.2.2.          a
lump sum cash payment to the Employee equal to 100% of the Employee’s Base Salary as in effect on such date (without taking
into effect any reduction described in Section 1.9.3 above); and

 

2.2.3.          if
the Employee validly elects to receive continuation coverage under the Company’s group health plan pursuant to COBRA, reimbursement
of the applicable premium otherwise payable for COBRA continuation coverage for the twelve (12) month period immediately following
the effective date of termination to the extent such premium exceeds the monthly amount charged to active similarly-situated employees
of the Company for the same coverage.

 

Except as otherwise provided in this Section
2, all compensation and benefits will cease at the time of the Employee’s cessation of employment and the Company will have
no further liability or obligation by reason of such cessation of employment. The payments and benefits described in this Section
2 are in lieu of (and not in addition to) any other severance plan, fund, agreement or other arrangement maintained by the Company.
Notwithstanding any provision of this Agreement, the payments and benefits described in Section 2.1.2 and 2.1.3 or 2.2.2 and 2.2.3
(as applicable) are conditioned on the Employee’s execution and delivery to the Company and the expiration of all applicable
statutory revocation periods, by the 60th day following the effective date of his cessation of employment, of the Release.
Subject to Section 2.4, below, the benefits described in Section 2.1.2 and 2.1.3 or 2.2.2 and 2.2.3 (as applicable) will begin
to be paid or provided as soon as administratively practicable after the Release becomes irrevocable,
provided that if the 60 day period described above begins in one taxable year and ends in a second taxable year such payments
or benefits shall not commence until the second taxable year.

 

2.3.       Other
Terminations. If the Employee’s employment with the Company ceases for any reason other than as described in Section
2.1 or 2.2 above (including but not limited to (a) termination by the Company for Cause, (b) resignation by the Employee without
Good Reason, (c) termination as a result of the Employee’s Disability, or (d) the Employee’s death), then the Company’s
obligation to the Employee will be limited solely to the payment of accrued and unpaid Base Salary through the date of such cessation
of employment. All compensation and benefits will cease at the time of such cessation of employment and, except as otherwise provided
by COBRA, the Company will have no further liability or obligation by reason of such termination.

 

    -4- 

     

    

 

2.4.       Compliance
with Section 409A. Notwithstanding anything to the contrary in this Agreement, no portion of the benefits or payments to be
made under Section 2.1.2 and 2.1.3 or 2.2.2 and 2.2.3 (as applicable) hereof will be payable until the Employee has a “separation
from service” from the Company within the meaning of Section 409A of the Code. In addition, to the extent compliance with
the requirements of Treas. Reg. § 1.409A-3(i)(2) (or any successor provision) is necessary to avoid the application of an
additional tax under Section 409A of the Code to payments due to the Employee upon or following his “separation from service”,
then notwithstanding any other provision of this Agreement (or any otherwise applicable plan, policy, agreement or arrangement),
any such payments that are otherwise due within six months following the Employee’s “separation from service”
(taking into account the preceding sentence of this paragraph) will be deferred without interest and paid to the Employee in a
lump sum immediately following that six month period. This paragraph should not be construed to prevent the application of Treas.
Reg. § 1.409A-1(b)(9)(iii) (or any successor provision) to amounts payable hereunder. For purposes of the application of Section
409A of the Code, each payment in a series of payments will be deemed a separate payment.

 

SECTION
3         Parachute Payments.

 

3.1.        The
payments and benefits provided under Section 2 shall be made without regard to whether such payments and benefits, either alone
or in conjunction with any other payments or benefits made available to the Employee by the Company and its Affiliates, will result
in the Employee being subject to an excise tax under Section 4999 of the Code (the “Excise Tax”) or whether
the deductibility of such payments and benefits would be limited or precluded by Section 280G of the Code; provided, however,
that if the Total After-Tax Payments (as defined below) would be increased by limitation or elimination of payments or benefits
provided under Section 2, then the amounts and benefits payable under Section 2 will be reduced to the minimum extent necessary
to maximize the Total After-Tax Payments. For purposes of this Section 3, “Total After-Tax Payments” means the
total of all “parachute payments” (as that term is defined in Section 280G(b)(2) of the Code) made to or for the benefit
of the Employee (whether made under this Agreement or otherwise), after reduction for all applicable taxes (including, without
limitation, the Excise Tax). If a reduction to the payments or benefits provided under Section 2 is required pursuant to this Section
3, such reduction shall occur to the payments and benefits in the order that results in the greatest economic present value of
all payments and benefits actually made to the Employee.

 

3.2.        All
determinations to be made under this Section 3 shall be made by the Company in good faith.

 

3.3.        As
a result of the uncertainty in the application of Section 280G and Section 4999 of the Code at the time of the Change of Control,
it is possible that payments and benefits which will not have been made or provided by the Company should have been made (“Underpayment”)
or payments and benefits are made or provided by the Company which should not have been made (“Overpayment”),
consistent with the calculations required to be made hereunder. In the event that there is a final determination by the Internal
Revenue Service, or a final determination by a court of competent jurisdiction, that an Overpayment has been made, any such Overpayment
shall repaid to the Company by the Employee within 30 days of such determination, with interest at the applicable Federal rate
provided for in Section 7872(f)(2) of the Code. In the event that there is a final determination by the Internal Revenue Service,
or a final determination by a court of competent jurisdiction, any such Underpayment shall be promptly paid by the Company to or
for the benefit of the Employee together with interest at the applicable Federal rate provided for in Section 7872(f)(2) of the
Code, within 30 days of such determination.

 

    -5- 

     

    

 

3.4.        Employee
shall take such action (other than waiving Employee’s right to any payments or benefits) as the Company reasonably requests
under the circumstances to mitigate or challenge any tax contemplated by this Section 3.

 

SECTION
4        Miscellaneous.

 

4.1.       Section
409A.

 

4.1.1.          This
Agreement shall be interpreted to avoid any penalty sanctions under Section 409A of the Internal Revenue Code of 1986, as amended
(the “Code”). If any payment or benefit cannot be provided or made at the time specified herein without incurring sanctions
under Section 409A, then such benefit or payment shall be provided in full at the earliest time thereafter when such sanctions
will not be imposed. In no event may the Employee, directly or indirectly, designate the calendar year of payment.

 

4.1.2.          Notwithstanding
anything herein to the contrary or otherwise, except to the extent any expense, reimbursement or in-kind benefit provided to the
Employee does not constitute a “deferral of compensation” within the meaning of Section 409A of the Code, and its implementing
regulations and guidance, (i) the amount of expenses eligible for reimbursement or in-kind benefits provided to the Employee during
any calendar year will not affect the amount of expenses eligible for reimbursement or in-kind benefits provided to the Employee
in any other calendar year, (ii) the reimbursements for expenses for which the Employee is entitled to be reimbursed shall be made
on or before the last day of the calendar year following the calendar year in which the applicable expense is incurred and (iii)
the right to payment or reimbursement or in-kind benefits hereunder may not be liquidated or exchanged for any other benefit.

 

4.2.       Term
of Agreement. This Agreement shall continue in full force and effect for the duration of the Employee’s employment with
the Company; provided, however, that after the termination of the Employee’s employment, this Agreement shall remain
in effect until all of the obligations of the parties hereunder are satisfied or have expired.

 

4.3.       Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the Company and Employee and their respective
successors, executors, administrators, heirs and/or permitted assigns; provided, however, that neither Employee nor the
Company may make any assignments of this Agreement or any interest herein, by operation of law or otherwise, without the prior
written consent of the other party, except that, without such consent, the Company may assign this Agreement to any successor to
all or substantially all of its assets and business by means of liquidation, dissolution, merger, consolidation, transfer of assets,
or otherwise.

 

4.4.       Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania without
regard to the application of the principles of conflicts of laws.

 

    -6- 

     

    

 

4.5.        Waivers;
Separability. The waiver by either party hereto of any right hereunder or any failure to perform or breach by the other party
hereto shall not be deemed a waiver of any other right hereunder or any other failure or breach by the other party hereto, whether
of the same or a similar nature or otherwise. No waiver shall be deemed to have occurred unless set forth in a writing executed
by or on behalf of the waiving party. 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. Whenever possible, each provision of this
Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement
is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity,
illegality or unenforceability will not affect any other provision or the effectiveness or validity of any provision in any other
jurisdiction, and this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable
provision had never been contained herein.

 

4.6.        Notices.
All notices and communications that are required or permitted to be given hereunder shall be in writing and shall be deemed to
have been duly given when delivered personally or upon mailing by registered or certified mail, postage prepaid, return receipt
requested, as follows:

 

If to the Company, to:

 

Malvern Federal Savings Bank

42 E. Lancaster Ave,

Paoli, PA 19301

Attn: Corporate Secretary

 

If to Employee, to the address on
file with the Company,

 

or to such other address as may be specified in a notice given
by one party to the other party hereunder.

 

4.7.       Entire
Agreement; Amendments. This Agreement contains the entire agreement and understanding of the parties relating to the provision
of severance benefits upon termination in connection with a Change of Control, and merges and supersedes all prior and contemporaneous
discussions, agreements and understandings of every nature relating to that subject.

 

4.8.       Withholding.
The Company will withhold from any payments due to Employee hereunder, all taxes, FICA or other amounts required to be withheld
pursuant to any applicable law.

 

4.9.       Headings
Descriptive. The headings of sections and paragraphs of this Agreement are inserted for convenience only and shall not in any
way affect the meaning or construction of any provision of this Agreement.

 

4.10.     Counterparts
and Facsimiles. This Agreement may be executed, including execution by electronic or facsimile signature, in one or more counterparts,
each of which shall be deemed an original, and all of which together shall be deemed to be one and the same instrument.

 

[signature page follows]

 

    -7- 

     

    

 

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement on the date and year first above written.

 

	 	MALVERN FEDERAL SAVINGS BANK
	 	 
	 	/s/ Anthony C. Weagely
	 	By: Anthony C. Weagley
	 	Title: President & CEO
	 	 
	 	Joseph Gangemi
	 	 
	 	/s/ Joseph Gangemi

  

    -8- 

     

    

 

Exhibit
A

Release
and Non-Disparagement Agreement

 

THIS RELEASE AND NON-DISPARAGEMENT AGREEMENT
(this “Release”) is made as of the ___ day of _______, _____ by and between ____________________ (the “Employee”)
and Malvern Federal Savings Bank (the “Company”).

 

WHEREAS, the Employee’s employment with
the Company has terminated; and

 

WHEREAS, pursuant to Section 2 of the Change
of Control Agreement by and between the Company and the Employee dated as of __________ ___, ____ (the “Change of Control
Agreement”), the Company has agreed to pay the Employee certain amounts and to provide Employee with certain rights and
benefits, subject to the execution of this Release.

 

NOW THEREFORE, in consideration of these premises
and the mutual promises contained herein, and intending to be legally bound hereby, the parties agree as follows:

 

SECTION
1       Consideration. The Employee acknowledges that: (a) the payments, rights
and benefits set forth in Section 2 of the Change of Control Agreement constitute full settlement of all of Employee’s rights
under the Change of Control Agreement, (b) the Employee has no entitlement under any other severance or similar arrangement maintained
by the Company, and (c) except as otherwise provided specifically in this Release, the Company does not and will not have any other
liability or obligation to the Employee. The Employee further acknowledges that, in the absence of Employee’s execution of
this Release, the payments and benefits specified in Section 2 of the Change of Control Agreement would not otherwise be due to
the Employee.

 

SECTION
2       Release and Covenant Not to Sue. The Employee hereby fully and forever
releases and discharges the Company and its parents, affiliates and subsidiaries, including all predecessors and successors, assigns,
officers, directors, trustees, employees, agents and attorneys, past and present (the Company and each such person or entity is
referred to as a “Released Person”), from any and all claims, demands, liens, agreements, contracts, covenants,
actions, suits, causes of action, obligations, controversies, debts, costs, expenses, damages, judgments, orders and liabilities,
of whatever kind or nature, direct or indirect, in law, equity or otherwise, whether known or unknown, arising through the date
of this Release, out of Employee’s employment by the Company or the termination thereof, including, but not limited to, any
claims for relief or causes of action under the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq., or any
other federal, state or local statute, ordinance or regulation regarding discrimination in employment and any claims, demands or
actions based upon alleged wrongful or retaliatory discharge or breach of contract under any state or federal law. The Employee
expressly represents that he has not filed a lawsuit or initiated any other administrative proceeding against a Released Person,
and that he has not assigned any claim against a Released Person. The Employee further promises not to initiate a lawsuit or to
bring any other claim against a Release Person arising out of or in any way related to Employee’s employment by the Company
or the termination of that employment. The forgoing will not be deemed to release the Company from (a) claims solely to enforce
this Release, (b) claims solely to enforce Section 2 of the Change of Control Agreement or (c) claims for indemnification under
the Company’s By-Laws, under any indemnification agreement between the Company and the Employee or under any similar agreement.
This Release will not prevent the Employee from filing a charge with the Equal Employment Opportunity Commission (or similar state
agency) or participating in any investigation conducted by the Equal Employment Opportunity Commission (or similar state agency);
provided, however, that any claims by the Employee for personal relief in connection with such a charge or investigation
(such as reinstatement or monetary damages) would be barred.

 

     

     

    

 

SECTION
3       Non-Disparagement. The Employee will not disparage the Company or any of its directors, officers, agents or
employees or otherwise take any action which could reasonably be expected to adversely affect the reputation of the Company or
the personal or professional reputation of any of the Company’s directors, officers, agents or employees.

 

SECTION
4       Cooperation. The Employee further agrees that, subject to reimbursement
of Employee’s reasonable expenses, he will cooperate fully with the Company and its counsel with respect to any matter (including
litigation, investigations, or governmental proceedings) which relates to matters with which the Employee was involved during Employee’s
employment with Company. The Employee shall render such cooperation in a timely manner on reasonable notice from the Company.

 

SECTION
5       Rescission Right. The Employee expressly acknowledges and recites that
he (a) has read and understands this Release in its entirety, (b) has entered into this Release knowingly and voluntarily, without
any duress or coercion; (c) has been advised orally and is hereby advised in writing to consult with an attorney with respect to
this Release before signing it; (d) was provided TWENTY-ONE (21)/FORTY-FIVE (45)]1 calendar days after receipt
of the Release to consider its terms before signing it; and (e) is provided seven (7) calendar days from the date of signing to
terminate and revoke this Release (or such longer period required by applicable state law), in which case this Release shall be
unenforceable, null and void. The Employee may revoke this Release during those seven (7) days (or such longer period required
by applicable state law) by providing written notice of revocation to the Company at the address specified in Section 4.6 of the
Change of Control Agreement.

 

SECTION
6        Challenge. If the Employee challenges the enforceability of this Release,
no further payments, rights or benefits under Section 2 of the Change of Control Agreement will be due to the Employee.

 

SECTION
7        Miscellaneous.

 

7.1.        No
Admission of Liability. This Release is not to be construed as an admission of any violation of any federal, state or local
statute, ordinance or regulation or of any duty owed by the Company to the Employee. There have been no such violations, and the
Company specifically denies any such violations.

 

7.2.       No
Reinstatement. The Employee agrees that he will not apply for reinstatement with the Company or seek in any way to be reinstated,
re-employed or hired by the Company in the future.

 

7.3.       Successors
and Assigns. This Release shall inure to the benefit of and be binding upon the Company and the Employee and their respective
successors, executors, administrators and heirs. The Company may assign this Release to any successor to all or substantially all
of its assets and business by means of liquidation, dissolution, merger, consolidation, transfer of assets, or otherwise.

 

 

1
As applicable based on the advice of counsel. If 45-day consideration period is applicable, this Release will be
revised based on advice of counsel to comply with applicable law.

  

     

     

    

 

7.4.       Severability.
Whenever possible, each provision of this Release will be interpreted in such manner as to be effective and valid under applicable
law. However, if any provision of this Release is held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability will not affect any other provision, and this Release will be reformed, construed and enforced as
though the invalid, illegal or unenforceable provision had never been herein contained.

 

7.5.        Entire
Agreement; Amendments. Except as otherwise provided herein, this Release contains the entire agreement and understanding of
the parties hereto relating to the subject matter hereof, and merges and supersedes all prior and contemporaneous discussions,
agreements and understandings of every nature relating to the subject matter hereof. This Release may not be changed or modified,
except by an Agreement in writing signed by each of the parties hereto.

 

7.6.       Governing
Law. This Release shall be governed by, and enforced in accordance with, the laws of the Commonwealth of Pennsylvania without
regard to the application of the principles of conflicts of laws.

 

7.7.        Counterparts
and Facsimiles. This Release may be executed, including execution by electronic or facsimile signature, in one or more counterparts,
each of which shall be deemed an original, and all of which together shall be deemed to be one and the same instrument.

 

IN WITNESS WHEREOF, the Company has caused
this Release to be executed by its duly authorized officer, and the Employee has executed this Release, in each case as of the
date first above written.

 

	 	MALVERN FEDERAL SAVINGS BANK
	 	 
	 	 
	 	By:
	 	Title:

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