Document:

Exhibit
          10.1

      

    

     

    EMPLOYMENT
      AGREEMENT

     

    This
      Agreement is made effective as of March 1, 2006 by and between Fairport Savings
      Bank (the “Bank”), a federally-chartered savings association with its principal
      executive office at 45 South Main Street, Fairport, New York 14450, and Dana
      Gavenda (“Executive”).

     

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

     

    WHEREAS,
      Executive is willing to continue to serve in the employ of the Bank on a
      full-time basis for said period.

     

    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

            

    

     

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

     

    (b)          
      During
      the period of his employment hereunder, except for periods of absence occasioned
      by illness, reasonable vacation periods, and reasonable leaves of absence,
      Executive shall devote substantially all his business time, attention, skill,
      and efforts to the faithful performance of his duties as President and Chief
      Executive Officer of the Bank, including overseeing and directing the day-to-day
      operations and management of the Bank; making recommendations to the Board
      regarding asset/liability management, long-range planning and compensation
      of
      officers; promoting the business of the Bank; and such other duties as the
      Board
      may from time to time reasonably direct. Provided, however, that with the
      approval of the Board, as evidenced by a resolution of the Board, Executive
      may
      serve, or continue to serve, on the boards of directors of, and hold other
      offices or positions with business or not-for-profit organizations, which,
      in
      the Board’s judgment, do not compete with the Bank or will not present any
      conflict of interest with the Bank, or materially affect the performance of
      Executive’s duties pursuant to this Agreement (for purposes of this Section
      1(b), Board approval shall be deemed provided as to service with any such
      business or other organizations that Executive was serving as of the date of
      this Agreement).

     

    
      	
              2.

            	
              TERM

            

    

     

    The
      period of Executive’s employment under this Agreement shall begin as of the date
      first above written and shall continue for a period of thirty-six (36) full
      calendar months thereafter. Commencing on the first anniversary date of this
      Agreement and continuing at each anniversary date thereafter, this Agreement
      shall renew for an additional year such that the remaining term shall be three
      (3) years; provided, however, that after the initial thirty-six (36) month
      term
      of this Agreement, if written notice of nonrenewal is provided to Executive
      at
      least ten (10) days and not more than sixty (60) days prior to any anniversary
      date, the employment of Executive hereunder shall cease at the end of twelve
      (12) months following such anniversary date. Prior to each notice period for
      non-renewal, the disinterested members of the Board will conduct a performance
      evaluation and review of Executive for purposes of determining whether to extend
      the Agreement, and the results thereof shall be included in the minutes of
      the
      Board’s meeting and communicated to Executive.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    
      	
              3.

            	
              COMPENSATION
                AND REIMBURSEMENT

            

    

     

    (a)          
      The
      compensation specified under this Agreement shall constitute the salary and
      benefits paid for the duties described in Section 1(b). The Bank shall pay
      Executive as compensation a salary of $140,000 per year (“Base Salary”), which
      Base Salary shall be payable in accordance with the normal and customary payroll
      practices of the Bank, but in no event less frequently than monthly. During
      the
      period of this Agreement, Executive’s Base Salary shall be reviewed at least
      annually and such Base Salary shall be $147,500 for the twelve (12) months
      beginning March 1, 2007, and 155,000 for the twelve (12) months beginning March
      1, 2008, subject to annual approval by the Board. Such review shall be conducted
      by a Committee designated by the Board, and the Board may increase or decrease,
      Executive’s Base Salary (any increase in Base Salary shall become the “Base
      Salary” for purposes of this Agreement). In addition to the Base Salary provided
      in this Section 3(a), the Bank shall provide Executive, at no cost to Executive,
      with all such other benefits as are provided uniformly to permanent full-time
      employees of the Bank. Base Salary shall include any amounts of compensation
      deferred by Executive under tax-qualified and nontax-qualified plans maintained
      by the Bank.

     

    (b)          
      The
      Bank
      will provide Executive with employee benefit plans, arrangements and perquisites
      substantially equivalent to those in which Executive was participating or
      otherwise deriving benefit from immediately prior to the beginning of the term
      of this Agreement, and the Bank will not, without Executive’s prior written
      consent, make any changes in such plans, arrangements or perquisites which
      would
      adversely affect Executive’s rights or benefits thereunder, unless such change
      is part of a change in benefits applicable to all employees of the Bank in
      connection with a bank-wide benefit plan. Without limiting the generality of
      the
      foregoing provisions of this Subsection (b), Executive will be entitled to
      participate in or receive benefits under any employee benefit plans including
      but not limited to, retirement plans, supplemental retirement plans, pension
      plans, profit-sharing plans, stock benefit plans, health-and-accident plans,
      medical coverage and any other employee benefit plan or arrangement made
      available by the Bank in the future to its senior executives and key management
      employees, subject to and on a basis consistent with the terms, conditions
      and
      overall administration of such plans and arrangements. Executive will be
      entitled to incentive compensation and/or bonuses as provided in any plan of
      the
      Bank in which Executive is eligible to participate (and he shall be entitled
      to
      a pro rata distribution under any incentive compensation or bonus plan as to
      any
      year in which a termination of employment occurs, other than termination for
      Cause). Such incentive compensation and/or bonuses shall be based on Executive’s
      performance and the performance and financial condition of the Bank. Nothing
      paid to Executive under any such plan or arrangement will be deemed to be in
      lieu of other compensation to which Executive is entitled under this
      Agreement.

     

    
      
        
        

      

      
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    (c)          
      In
      addition to the Base Salary provided for by paragraph (a) of this Section 3,
      the
      Bank shall pay or reimburse Executive for all reasonable travel and other
      reasonable expenses incurred by Executive in performing his obligations under
      this Agreement and may provide such additional compensation in such form and
      such amounts as the Board may from time to time determine.

     

    (d)          
      Executive
      shall be entitled to five (5) weeks of paid vacation per calendar year, or
      such
      greater period as may be approved from time to time by the Board of Directors.
      In the event that the full vacation is not taken in any year due to the work
      commitments of Executive, Executive may carry over any such unused vacation
      time
      from year to year unless such carryover is prohibited by law or regulation.
      Upon
      any termination of Executive, Executive will be entitled to be paid the value
      of
      any accrued or accumulated vacation time and shall be required to reimburse
      the
      Bank for the value of any vacation time taken but not yet accrued.

     

    (e)          
      Executive
      shall also be entitled to an automobile of the Bank’s selection to be used by
      Executive in rendering services to the Bank and for limited personal use,
      together with reimbursement for all gas, oil, maintenance, insurance and repairs
      required by reason of the use of such vehicle. Executive shall be required
      to
      account for all costs of use of such automobile in the manner prescribed by
      the
      Board.

     

    
      	
              4.

            	
              PAYMENTS
                TO EXECUTIVE UPON AN EVENT OF
                TERMINATION

            

    

     

    (a)          
      Upon
      the
      occurrence of an Event of Termination (as herein defined) during Executive’s
      term of employment under this Agreement, the provisions of this Section shall
      apply. As used in this Agreement, an “Event of Termination” shall mean and
      include any one or more of the following: 

     

    
      	 	
              (i)

            	
              the
                termination by the Bank of Executive’s full-time employment hereunder for
                any reason other than following a Change in Control, as defined in
                Section
                5(a) hereof, or termination for Cause, as defined in Section 8 hereof,
                or
                upon Retirement as defined in Section 7 hereof, or for Disability
                as set
                forth in Section 6 hereof; and 

            

    

     

    
      	 	
              (ii)

            	
              Executive’s
                resignation from the Bank’s employ, upon any (A) failure to elect or
                reelect or to appoint or reappoint Executive as President and Chief
                Executive Officer of the Bank, unless consented to by Executive,
                (B)
                material change in Executive’s function, duties, or responsibilities,
                which change would cause Executive’s position to become one of lesser
                responsibility, importance, or scope from the position and attributes
                thereof described in Section 1 above, to which Executive has not
                agreed in
                writing (and any such material change shall be deemed a continuing
                breach
                of this Agreement), (C) relocation of Executive’s principal place of
                employment by more than 30 miles from its location at the effective
                date
                of the Agreement, or a material reduction in the benefits and perquisites
                to Executive from those being provided as of the effective date of
                this
                Agreement (unless such reduction is part of a reduction in benefits
                to all
                employees of the Bank in connection with a bankwide benefit plan),
                (D) liquidation or dissolution of the Bank, or (E) material breach of
                this Agreement by the Bank. 

            

    

     

    
      
        
        

      

      
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    Upon
      the
      occurrence of any event described in clauses (ii) (A), (B), (C), (D) or (E)
      above, Executive shall have the right to elect to terminate his employment
      under
      this Agreement by resignation upon not less than thirty (30) days prior written
      notice given within a reasonable period of time (not to exceed, except in case
      of a continuing breach, four calendar months) after the event giving rise to
      said right to elect, which termination by Executive shall be an Event of
      Termination. Notwithstanding the preceding sentence, in the event of a
      continuing breach of this Agreement by the Bank, Executive, after giving due
      notice within the prescribed time frame of an initial event specified above,
      shall not waive any 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 an event described in clauses (A), (B), (C), (D)
      or
      (E) above.

     

    (b)          
      Upon
      the
      occurrence of an Event of Termination, the Bank shall pay Executive, or, in
      the
      event of his subsequent death, his beneficiary or beneficiaries, or his estate,
      as the case may be, as severance pay or liquidated damages, or both, a cash
      amount equal to the greater of the payments due for the remaining term of the
      Agreement, or one (1) times the sum of: (i) the highest annual rate of Base
      Salary paid to Executive at any time under this Agreement, and (ii) the
      greater of (x) the average annual cash bonus paid to Executive with respect
      to
      the three (3) completed fiscal years prior to the Event of Termination, or
      (y)
      the cash bonus paid to Executive with respect to the fiscal year ended prior
      to
      the Event of Termination; provided
      however, that
      if
      the Bank is not in compliance with its minimum capital requirements or if such
      payments would cause the Bank’s capital to be reduced below its minimum capital
      requirements, such payments shall be deferred until such time as the Bank is
      in
      capital compliance; and provided
      further,
      that in
      no event shall total severance compensation from all sources exceed ne (1)
      times
      Executive’s average annual compensation over the five (5) fiscal years preceding
      the fiscal year in which the termination of employment occurs (for purposes
      of
      this provision and only for purposes of this provision, compensation shall
      mean
      any payment of money or provision of any other thing of value in consideration
      of employment, including, without limitation, base salary, commissions, bonuses,
      pension and profit sharing plans, severance payments, retirement, director
      or
      committee fees, fringe benefits, and the payment of expense items without
      accountability or business purpose or that do not meet the Internal Revenue
      Service (“IRS”) requirement for deductibility by the Bank). The present value of
      the payment required hereunder shall be made in a lump sum within thirty (30)
      days following Executive’s termination of employment, or, if Code Section 409A
      is applicable, on the first day of the seventh full month following Executive’s
      termination of employment. For these purposes, present value shall be determined
      using the applicable federal rate under Section 1274(d) of the Internal Revenue
      Code (“Code”). Such payments shall not be reduced in the event Executive obtains
      other employment following termination of employment.

     

    (c)          
      Upon
      the
      occurrence of an Event of Termination, the Bank will cause to be continued
      at
      the Bank’s expense, life, medical, dental and disability insurance coverage
      substantially identical to the coverage maintained by the Bank for Executive
      prior to his termination, except to the extent such coverage may be changed
      in
      its application to all Bank employees. Such coverage shall cease thirty-six
      (36)
      months following the Event of Termination.

     

    
      
        
        

      

      
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              5.

            	
              CHANGE
                IN CONTROL

            

    

     

    (a)          
      No
      benefit shall be payable under this Section 5 unless there shall have been
      a
      Change in Control, as set forth below. For purposes of this Agreement, a “Change
      in Control” shall mean a change in control of the Bank or the Bank’s mid-tier
      holding company (the “Company”) or mutual holding company (the “MHC”), of a
      nature that: (i) would be required to be reported in response to Item 1(a)
      of
      the current report on Form 8-K, as in effect on the date hereof, pursuant to
      Section 13 or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”);
      or (ii) without limitation such a Change in Control shall be deemed to have
      occurred at such time as (a) any “person” (as the term is used in Sections 13(d)
      and 14(d) of the Exchange Act) is or becomes the “beneficial owner” (as defined
      in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities
      of
      the Bank or the Company representing 25% or more of the combined voting power
      of
      Bank’s or the Company’s outstanding securities except for any securities
      purchased by the Bank’s employee stock ownership plan or trust; or (b)
      individuals who constitute the Board on the date hereof (the “Incumbent Board”)
      cease for any reason to constitute at least a majority thereof, provided
      that any
      person becoming a director subsequent to the date hereof whose election was
      approved by a vote of at least three-quarters of the members of the entire
      Board
      of Directors then in office shall be considered, for purposes of this
      clause (b), as though he were a member of the Incumbent Board; or (c) a
      plan of reorganization, merger, consolidation, sale of all or substantially
      all
      the assets of the Bank or the Company or similar transaction in which the Bank
      or Company is not the surviving institution occurs; or (d) a proxy statement
      soliciting proxies from stockholders of the Bank or the Company, by someone
      other than the current management of the Company, seeking stockholder approval
      of a plan of reorganization, merger or consolidation of the Bank or the Company
      or similar transaction with one or more corporations as a result of which the
      outstanding shares of the class of securities then subject to the plan are
      exchanged for or converted into cash or property or securities not issued by
      the
      Company; or (e) a tender offer is made for 25% or more of the voting securities
      of the Bank or the Company, and the shareholders owning beneficially or of
      record 25% or more of the outstanding securities of the Bank or the Company
      have
      tendered or offered to sell their shares pursuant to such tender offer and
      such
      tendered shares have been accepted by the tender offeror. Notwithstanding
      anything in this sub-section to the contrary, a Change in Control shall not
      be
      deemed to have occurred upon the issuance of common stock by the Company in
      a
      minority stock offering, or upon conversion of the Company’s mutual holding
      company parent to stock form, or in connection with any reorganization used
      to
      effect such a conversion.

     

    (b)          
      If
      any of
      the events described in Section 5(a) hereof constituting a Change in Control
      shall have occurred, Executive shall be entitled to the benefits provided in
      paragraphs (c) and (d) of this Section 5 upon his subsequent termination of
      employment at any time during the term of this Agreement (regardless of whether
      such termination results from his resignation or his dismissal).

     

    (c)          
      Upon
      the
      occurrence of a Change in Control, Executive, or, in the event of his subsequent
      death (subsequent to such termination), his beneficiary or beneficiaries, or
      his
      estate, as the case may be, shall receive as severance pay or liquidated
      damages, or both, an amount equal to three times the sum of: (i) the highest
      annual rate of Base Salary paid to Executive at any time under this Agreement,
      and (ii) the greater of (x) the average annual cash bonus paid to Executive
      with respect to the three completed fiscal years prior to the termination,
      or
      (y) the cash bonus paid to Executive with respect to the fiscal year ended
      prior
      to the termination; provided
      however, that
      if
      the Bank is not in compliance with its minimum capital requirements or if such
      payments would cause the Bank’s capital to be reduced below its minimum capital
      requirements, such payments shall be deferred until such time as the Bank is
      in
      capital compliance; and provided
      further
      that in
      no event shall total severance compensation from all sources exceed three times
      Executive’s average annual compensation over the five fiscal years preceding the
      fiscal year in which the termination of employment occurs (for purposes of
      this
      provision and only for purposes of this provision, compensation shall mean
      any
      payment of money or provision of any other thing of value in consideration
      of
      employment, including, without limitation, base salary, commissions, bonuses,
      pension and profit sharing plans, severance payments, retirement, director
      or
      committee fees, fringe benefits, and the payment of expense items without
      accountability or business purpose or that do not meet the IRS requirement
      for
      deductibility by the Bank). The foregoing severance/liquidated damages
      payment(s), as well as all other benefits described in this Agreement that
      would
      be payable upon a Change in Control, shall be made to Executive’s surviving
      spouse, or if no surviving spouse, to his estate, in the event that the Company
      or the Bank enters into an agreement that would cause a Change in Control of
      the
      Bank, and Executive dies after such agreement is executed but prior to
      consummation of the Change in Control, which payments shall commence upon,
      and
      shall be contingent upon, the actual consummation of the Change in Control.
      The
      present value of the payment required hereunder shall be made in a lump sum
      within thirty (30) days following Executive’s termination of employment, or, if
      Code Section 409A is applicable, on the first day of the seventh full month
      following Executive’s termination of employment. For these purposes, present
      value shall be determined using the applicable federal rate under Section
      1274(d) of the Internal Revenue Code (“Code”).

     

    
      
        
        

      

      
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    (d)          
      Upon
      the
      occurrence of a Change in Control followed by the termination of Executive’s
      employment, the Bank will cause to be continued at the Bank’s expense life,
      health and disability insurance coverage substantially identical to the coverage
      maintained by the Bank for Executive prior to the Change in Control, except
      to
      the extent such coverage is changed in its application to all employees of
      the
      Bank. Such coverage shall cease thirty-six (36) months from the date of
      Executive’s termination of employment.

     

    (e)          
      Notwithstanding
      the preceding paragraphs of this Section 5, in no event shall the aggregate
      payments or benefits to be made or afforded to the Executive under said
      paragraphs (the “Termination Benefits”) constitute an “excess parachute payment”
under Section 280G of the Code or any successor thereto, and in order to avoid
      such a result, Termination Benefits will be reduced, if necessary, to an amount
      (the “Non-Triggering Amount”), the value of which is one dollar ($1.00) less
      than an amount equal to three (3) times the Executive’s “base amount,” as
      determined in accordance with said Code Section 280G. The allocation of the
      reduction required hereby among Termination Benefits provided by the preceding
      paragraphs of this Section 5 shall be determined by the Executive.

     

    
      
        
        

      

      
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              6.

            	
              DISABILITY
                OR DEATH

            

    

     

    (a)          
      If
      (A)
      Executive is unable to perform his duties hereunder by reason of incapacity
      or
      illness and Executive shall have been absent from his duties with the Bank
      on a
      full-time basis for six (6) months within any twelve (12) month period, or
      (B)
      Executive becomes “Totally Disabled,” the Bank may terminate Executive’s
      employment for “Disability.” Termination for Disability shall be determined by a
      majority of the disinterested directors of the Board, and shall be effective
      thirty (30) days after written notice of such termination is given to Executive.
      If Executive resumes his duties on a full-time basis within thirty (30) days
      after the Bank gives notice of termination pursuant to this Section 6(a) and
      Executive continues to perform such duties on a full-time basis for four (4)
      consecutive weeks thereafter, this Agreement shall continue in full force and
      effect without a reduction in Base Salary and other benefits, and the notice
      of
      termination shall be considered to be null and void and of no
      effect.

     

    (b)          
      “Totally
      Disabled” shall mean a mental or physical condition which in the reasonable
      opinion of the disinterested members of the Board renders Executive unable
      or
      incompetent to properly carryout the job responsibilities attendant to
      Executive’s position and office under this Agreement. If any controversy arises
      as to whether Executive is Totally Disabled, the Board may require that
      Executive be examined by a physician and, in such case, the decision of such
      physician shall be conclusive and binding on all parties. The examining
      physician shall be selected by the Board. Notwithstanding anything to the
      contrary herein, if at the time that the Executive is determined to be “Totally
      Disabled,” counsel to the Bank determines that Section 409A of the Internal
      Revenue Code (“Code”) applies to the disability benefit paid to the Executive,
      then the term “Totally Disabled” shall mean “disability” within the meaning of
      Code Section 409A.

     

    (c)          
      In
      the
      event the Bank terminates Executive’s employment due to Disability, the Bank
      will:

     

    (1)          
      Pay
      Executive, or cause Executive to be paid under a disability insurance plan,
      as
      disability pay, a bi-weekly payment equal to the 65% of Executive’s monthly rate
      of Base Salary on the effective date of such termination. These disability
      payments shall commence on the effective date of Executive’s termination and
      will end on the earlier (1) the date Executive returns to the full-time
      employment of the Bank in the same capacity as he was employed prior to his
      termination for Disability; (ii) Executive’s full-time employment by another
      employer; (iii) three (3) years from the effective date of Executive’s
      termination; (iv) Executive attaining the age of 65; or (v) Executive’s death.
      If Executive is covered by a disability insurance policy purchased by the Bank
      for Executive’s benefit, any payments required by this Section 6 shall be
      satisfied first through the benefits paid to Executive under said policy, and
      the Bank will be responsible only for payments required hereunder that are
      in
      excess of the policy limits.

     

    (2)          
      Cause
      to
      be continued life and health care coverage substantially identical to the
      coverage maintained by the Bank for Executive prior to his termination for
      Disability, except to the extent such coverage may be changed in its application
      to all Bank employees. This coverage shall cease upon the termination of
      payments to Executive under Section 6(c)(1) above.

     

    
      
        
        

      

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

     

    
      	
              7.

            	
              TERMINATION
                UPON RETIREMENT

            

    

     

    Termination
      by the Bank of Executive based on “Retirement” shall mean termination for any
      reason of Executive’s employment on or after age 65 or in accordance with any
      retirement policy established with Executive’s consent with respect to him. Upon
      termination of Executive upon Retirement, Executive shall be entitled to all
      benefits under any retirement plan of the Bank and other plans to which
      Executive is a party, but Executive shall not be entitled to any payments or
      benefits that would be due as a result of an Event of Termination under Section
      4 hereof.

     

    
      	
              8.

            	
              TERMINATION
                FOR CAUSE

            

    

     

    The
      term
“Termination for Cause” shall mean termination by a vote of at least a majority
      of the entire membership of the Board because of Executive’s personal
      dishonesty, incompetence, willful misconduct, any breach of fiduciary duty
      involving personal profit, intentional failure to perform stated duties, willful
      violation of any law, rule, or regulation (other than traffic violations or
      similar offenses) or final cease-and-desist order, the willful commission of
      any
      act that in the judgment of the Board would likely cause substantial economic
      damage to the Bank or the Company or substantial injury to the business
      reputation of the Bank or the Company, or material breach of any provision
      of
      this Agreement. Executive shall not have the right to receive compensation
      or
      other benefits for any period after Termination for Cause

     

    
      	
              9.

            	
              NOTICE

            

    

     

    (a)          
      Any
      termination by the Bank or the Executive shall be communicated by Notice of
      Termination to the other party. For purposes of this Agreement, a “Notice of
      Termination” shall mean a written notice which shall: indicate the specific
      termination provision in this Agreement relied upon; in the case of Termination
      for Cause, include a copy of a resolution duly adopted by the affirmative vote
      of not less than a majority of the entire membership of the Board; and, set
      forth in reasonable detail the facts and circumstances claimed to provide a
      basis for termination of employment under the provision so indicated. “Date of
      Termination” shall mean the date of the Notice if Termination. If, within thirty
      (30) days after any Notice of Termination for Cause is given, the party
      receiving the Notice of Termination notifies the other party that a dispute
      exists concerning the termination, the parties shall promptly proceed to
      arbitration. Executive’s services with the Bank shall be suspended pending
      resolution of such dispute by arbitration, and the Bank shall discontinue to
      pay
      Executive compensation until the dispute is finally resolved in accordance
      with
      this Agreement. If it is determined that Executive is entitled to compensation
      and benefits under Sections 4 or 5 of this Agreement, the payment of such
      compensation and benefits by the Bank shall commence immediately following
      the
      date of resolution by arbitration, with interest due Executive on the cash
      amount that would have been paid pending arbitration (at the prime rate as
      published in The
      Wall Street Journal from
      time
      to time).

     

    
      
        
        

      

      
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              10.

            	
              POST-TERMINATION
                OBLIGATIONS

            

    

     

    (a)          
      As
      a
      material inducement for the Bank to enter into this Agreement, upon termination
      of this Agreement for any reason, other than the reasons set forth in Sections
      5
      or 6 of this Agreement, for a period of two (2) years from the Date of
      Termination (one year from the termination of the Agreement as a result of
      a
      Change in Control) Executive shall not at any time or place, either directly
      or
      indirectly, engage in any business or activity in competition with the business
      of the Bank, or be a director, officer or employee or consultant to any bank,
      savings bank, savings association or credit union, operating in Monroe County,
      if such entity has assets of less than $1.0 billion.

     

    (b)          
      All
      payments and benefits to Executive under this Agreement shall be subject to
      Executive’s compliance with paragraph (c) of this Section 10 during the term of
      this Agreement and for one (1) full year after the expiration or termination
      hereof.

     

    (c)          
      Executive
      shall, upon reasonable notice, furnish such information and assistance to the
      Bank as may reasonably be required by the Bank in connection with any litigation
      in which it or any of its subsidiaries or affiliates is, or may become, a
      party.

     

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

     

    
      	
              11.

            	
              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 of a kind elsewhere
      provided. No provision of this Agreement shall be interpreted to mean that
      Executive is subject to receiving fewer benefits than those available to him
      without reference to this Agreement.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

       

    

    
      	
              12.

            	
              NO
                ATTACHMENT

            

    

     

    (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.

     

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

     

    
      	
              13.

            	
              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.

     

    
      	
              14.

            	
              REQUIRED
                PROVISIONS

            

    

     

    (a)          
      The
      Bank’s Board of Directors may terminate Executive’s employment at any time, but
      any termination by the Bank’s Board of Directors, other than Termination for
      Cause, shall not prejudice Executive’s right to compensation or other benefits
      under this Agreement. Executive shall not have the right to receive compensation
      or other benefits for any period after Termination for Cause as defined in
      Section 8 hereinabove. 

     

    (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) (12 U.S.C. § 1818(g)) of the
      Federal Deposit Insurance Act, as amended by the Financial Institutions Reform,
      Recovery and Enforcement Act of 1989 (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 their contract obligations were suspended and (ii) reinstate (in whole
      or
      in part) any of the 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) (12 U.S.C.
§§ 1818(e)) or 8(g) (12 U.S.C. § 1818(g)) 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.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

       

    

    (d)          
      If
      the
      Bank is in default as defined in Section 3(x) (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.

     

    (e)          
      All
      obligations of the Bank under this Agreement shall be terminated, except to
      the
      extent determined that continuation of the contract is necessary for the
      continued operation of the institution, (i) by the Director, at the time the
      FDIC or the Resolution Trust Corporation enters into an agreement to provide
      assistance to or on behalf of the Bank; or (ii) by the OTS at the time the
      OTS
      or its Regional Director approves a supervisory merger to resolve problems
      related to the operations of the Bank or when the Bank is determined by the
      OTS
      or FDIC 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)          
      Any
      payments made to Executive pursuant to this Agreement, or otherwise, are subject
      to and conditioned upon their compliance with 12 USC Section 1828(k) and any
      regulations promulgated thereunder.

     

    
      	
              15.

            	
              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.

     

    
      	
              16.

            	
              HEADINGS
                FOR REFERENCE ONLY

            

    

     

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

     

    
      	
              17.

            	
              GOVERNING
                LAW

            

    

     

    This
      Agreement shall be governed in all respects, including validity, construction,
      capacity and performance, by the laws of the State of New York, but only to
      the
      extent not superseded by federal law.

     

    
      	
              18.

            	
              ARBITRATION

            

    

     

    Any
      dispute or controversy arising under or in connection with this Agreement shall
      be settled exclusively by arbitration, conducted before a panel of three
      arbitrators sitting in a location selected by the Bank within fifty (50) miles
      of Fairport, New York, in accordance with the rules of the American Arbitration
      Association then in effect. In the event the need for arbitration arises the
      Bank shall select one arbitrator and the Executive shall select one arbitrator.
      The arbitrators selected by the parties shall select a third arbitrator. The
      arbitrators shall not have any authority to add to or modify the provisions
      of
      this Agreement in any way. Judgment may be entered on the arbitrators’ award in
      any court having jurisdiction.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

       

    

    
      	
              19.

            	
              PAYMENT
                OF FEES AND EXPENSES

            

    

     

    In
      the
      event of any dispute between the Executive and the Bank regarding this
      Agreement, whether instituted by formal legal proceedings or otherwise,
      including any action taken by Executive in defending against any action taken
      by
      the Bank, the prevailing party shall be reimbursed for all costs and expenses,
      including reasonable attorney’s fees, arising from such dispute, proceedings or
      actions. In the event of a settlement of such dispute, each party shall bear
      its
      own costs and expenses. Any reimbursement owed under this Section 19 shall
      be
      paid within ten (10) days of the furnishing to the non-prevailing party of
      written evidence of any costs or expenses incurred by the prevailing
      party.

     

    
      	
              20.

            	
              INDEMNIFICATION

            

    

     

    The
      Bank
      shall provide Executive (including his heirs, executors and administrators)
      with
      coverage under a standard directors’ and officers’ liability insurance policy at
      its expense, and shall indemnify Executive (and his heirs, executors and
      administrators) to the fullest extent permitted under federal law against all
      expenses and liabilities reasonably incurred by him in connection with or
      arising out of any action, suit or proceeding in which he may be involved by
      reason of his having been a director or officer of the Bank (whether or not
      he
      continues to be a director or officer at the time of incurring such expenses
      or
      liabilities), such expenses and liabilities to include, but not be limited
      to,
      judgments, court costs and attorneys’ fees and the cost of reasonable
      settlements (such settlements must be approved by the Board of Directors of
      the
      Bank). The obligations of the Bank under this Section 20 shall be subject to
      12
      C.F.R. § 545.121.

     

    
      	
              21.

            	
              SUCCESSOR
                TO THE BANK

            

    

     

    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.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    SIGNATURES

     

    IN
      WITNESS WHEREOF, the Bank has caused this Agreement to be executed by its duly
      authorized officer, and Executive has signed this Agreement, on the day and
      date
      first above written.

     

    
      	 	 	 
	ATTEST:	
              FAIRPORT
                SAVINGS BANK

            
	 
 	 
 	 
 
	/s/
              Leslie J. Zornow	By:  	/s/ D.
              Lawrence Keef
	
              

              Secretary

            	
              

              Chairman
                of the Board

            

    

     

    
      	 	 	 
	WITNESS:	
              EXECUTIVE:

            
	 
 	 
 	 
 
	/s/
              Kathy Tuff	By:  	/s/ Dana
              C.
              Gavenda
	
              

            	
              

              Dana
                Gavenda

            

    

        

    
      
        
        

      

      
        13Exhibit
      10.2

    

      FAIRPORT
        SAVINGS
        BANK

      SUPPLEMENTAL
        EXECUTIVE
        RETIREMENT
        PLAN

       

    

    The
      Fairport Savings Bank (the “Employer”) hereby establishes this Fairport Savings
      Bank Supplemental Executive Retirement Plan (the “SERP” or the “Plan”)
      effective February 15, 2006. This
      Plan
      is intended to qualify as a “top hat” plan maintained primarily for purposes of
      providing benefits for a select group of management and highly compensated
      employees within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of
      the
      Employee Retirement Income Security Act of 1974, as amended (and
      all
      rulings and regulations thereunder (“ERISA”)). It is intended to comply with
      Internal Revenue Code Section 409A and the regulation promulgated
      thereto.

     

    ARTICLE
      I

    GENERAL

    

    
      	
              1.1

            	
              Purpose
                of the Plan.
                The purpose of this Plan is to reward certain management and highly
                compensated employees of the Employer who have contributed to the
                Employer’s success and are expected to continue to contribute to such
                success in the future.

            

    

    

    
      	
              1.2

            	
              Plan
                Benefits Generally.
                Pursuant to the Plan, the Employer may provide to each Participant
                such
                benefit as provided on the terms and conditions contained in the
                Plan and
                the Participant’s individual Participation
                Agreement.

            

    

     

    
      	
              1.3

            	
              Effective
                Date.
                The effective date of the Plan is January 1,
                2006.

            

    

     

    ARTICLE
      II

    DEFINITIONS

    

    
      	
              2.1

            	
              Accrued
                SERP Benefit.
                Accrued SERP Benefit means, with respect to each Participant, the
                amount
                of accrued benefit for the Participant at the time of
                termination.

            

    

    

    
      	
              2.2

            	
              Accrued
                SERP Obligation.
                Accrued SERP Obligation means, with respect to each Participant,
                the
                amount of the Employer’s contingent liability to pay the Accrued SERP
                Benefit to such Participant. 

            

    

     

    
      	
              2.3

            	
              Administrator.
                Administrator means the Employer as defined
                herein.

            

    

     

    
      	
              2.4

            	
              Beneficiary.
                Beneficiary means the person or persons designated by a Participant
                as his
                beneficiary in accordance with the provisions of Article V and subject
                to
                the Participation Agreement.

            

    

     

    
      	2.5	
              Board.
                Board means the Board of Directors of the
                Employer.

            

    

     

    
      	2.6	
              Cause.
                Cause shall have the meaning set forth in Section
                4.2.

            

    

     

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

     

    
      	2.7	
              Change
                in Control.
                Provided
                that such definition shall be interpreted in a manner that is consistent
                with
                Code Section 409A and Treasury regulations thereunder, a “Change of
                Control” of the Employer shall mean the first to occur of any of the
                following:

            

    

    

    
      	 	
              (a)

            	
              the
                date that any one person or persons acting as a group acquires ownership
                of Employee stock constituting more than fifty percent (50%) of the
                total
                fair market value or total voting power of the
                Employer;

            

    

    

    
      	 	
              (b)

            	
              the
                date that any one person or persons acting as a group 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 the stock of
                the
                Employer possessing thirty-five percent (35%) or more of the total
                voting
                power of the stock of the Employer;

            

    

    

    
      	 	
              (c)

            	
              the
                date that any one person or persons acting as a group acquires assets
                from
                the Employer that have a total gross fair market value equal to or
                more
                than forty percent (40%) of the total gross fair market value of
                all of
                the assets of the Employer immediately prior to such acquisition;
                or

            

    

    

    
      	 	
              (d)

            	
              the
                date that a majority of members of the Employer’s Board is replaced during
                any 12-month period by directors whose appointment or election is
                not
                endorsed by a majority of the members of the Board prior to the date
                of
                the appointment or elections.

            

    

    

    
      	2.8	
              Employer.
                Employer means Fairport Savings
                Bank.

            

    

    

    
      	
              2.9

            	
              ERISA.
                ERISA means the Employee Retirement Income Security Act of 1974,
                as
                amended from time to time.

            

    

    

    
      	
              2.10

            	
              Executive.
                Executive means a management or highly compensated employee of the
                Employer designated by the Administrator as eligible to participate
                in the
                Plan.

            

    

    

    
      	
              2.11

            	
              Normal
                Retirement.
                Normal Retirement means separation from service by a Participant’s for any
                reason other than for Cause after such Participant has reached his
                Normal
                Retirement Age. A
                separation from service with the Employer shall be a Participant
                termination within the meaning of Code Section 409A(a)(2)(A)(i) and
                regulations thereunder.

            

    

    

    
      	
              2.12

            	
              Normal
                Retirement Age.
                Normal Retirement Age means the normal retirement age set forth in
                the
                Participant’s Participation Agreement.

            

    

    

    
      	
              2.13

            	
              Participant.
                Participant means any Executive who elects to participate in the
                Plan by
                entering into a Participation Agreement in accordance herewith. The
                Administrator may, from time to time in its sole discretion, with
                Cause,
                revoke a Participant’s participation in the Plan upon ninety (90) days’
                written notice. The Administrator may from time to time, in its sole
                discretion without Cause, revoke a Participant’s participation. A
                revocation without Cause shall not reduce any benefits to which the
                Participant and the Administrator have agreed the Participant is
                entitled
                to at the time of such without Cause
                revocation

            

    

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    
      	
              2.14

            	
              Participation
                Agreement.
                Participation Agreement means a written agreement between the Employer
                and
                a Participant, pursuant to which the Employer agrees to make SERP
                Benefit
                payments in accordance with the Plan and the Participation Agreement.
                Each
                Participation Agreement shall contain such information, terms and
                conditions as the Administrator in its discretion may specify, including
                without limitation, the following:

            

    

    

    
      	 	
              (a)

            	
              the
                effective date of the Participant’s participation in the
                Plan;

            

    

    

    
      	
            	(b)	
              the
                Participant’s Normal Retirement
                Age;

            

    

    

    
      	 	
              (c)

            	
              the
                SERP Benefits to which the Participant is entitled under the Plan
                and, the
                form such benefits are to be paid in (i.e. installments or lump
                sum);

            

    

    

    
      	 	
              (d)

            	
              the
                identity of the Participant’s Beneficiary;
                and

            

    

    

    
      	 	
              (e)

            	
              any
                other provisions which supplement the terms and conditions contained
                in
                the Plan and which are not inconsistent with the terms and conditions
                of
                the Plan.

            

    

    

    
      	
              2.15

            	
              Plan.
                Plan means this Fairport Savings Bank Supplemental Executive Retirement
                Plan, as the same may be amended from time to
                time.

            

    

    

    
      	
              2.16

            	
              SERP
                Benefit.
                SERP Benefit means, with respect to each Participant, an annual cash
                benefit in the amount determined pursuant to the Participant’s
                Participation Agreement, minus any offset amounts specified therein.
                

            

    

    

    
      	
              2.17

            	
              Vesting.
                The Participant’s ownership rights in the SERP Benefit shall arise, or
                vest, solely with the occurrence of those conditions precedent to
                Vesting
                as contained in the Participation
                Agreement.

            

    

    

    
      	
              2.18

            	
              Year
                of Service.
                Year of Service shall have the meaning as set forth in the Participant’s
                Participation Agreement. 

            

    

    

    ARTICLE
      III

    ELIGIBILITY
      AND PARTICIPATION

    

    
      	
              3.1

            	
              Eligibility.
                The Administrator, in its sole discretion, shall from time to time
                determine those Executive(s) who shall be eligible to participate
                in the
                Plan.

            

    

    

    
      	
              3.2

            	
              Participation.
                Each Executive who is eligible to participate in the Plan shall enroll
                in
                the Plan by entering into a Participation Agreement and completing
                such
                other forms and furnishing such other information as the Administrator
                may
                request. An Executive’s participation in the Plan shall commence as of the
                date specified in the Participation
                Agreement.

            

    

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      IV

    BENEFITS

    

    
      	
              4.1

            	
              SERP
                Benefit.
                Each Participant, subject to the terms and conditions of his Participation
                Agreement, shall become entitled to receive such benefits as set
                forth in
                the executed Participation
                Agreement.

            

    

    

    
      	
              4.2

            	
              Establishment
                of SERP Accounts.
                The Employer shall keep on its books, an Accrued SERP Obligation
                Account
                in the name of each Participant which account shall reflect the Accrued
                SERP Obligation payable to each Participant. Commensurate with any
                increase Accrued SERP Obligation under the terms of any Participation
                Agreement, the Employer shall credit to the Accrued SERP Obligation
                Account of each Participant an amount equal to the such increase
                in the
                Employer’s Accrued SERP Obligation with respect to such Participant. In no
                event shall a Participant’s Accrued SERP Obligation Account be credited
                with income, gain or appreciation in any form, nor debited with any
                loss,
                depreciation or expense. Title to and beneficial interest of any
                assets,
                whether in cash or investments, which the Employer may set aside
                or
                earmark to meet its Accrued SERP Obligation hereunder shall at all
                times
                remain in the Employer and no Participant or beneficiary shall under
                any
                circumstances acquire any property interest in any specific asset
                of the
                Employer.

            

    

    

    
      	
              4.3

            	
              No
                Benefits Payable Upon Termination for Cause.
                Notwithstanding anything herein or in the Participation Agreement
                to the
                contrary, no benefits shall be payable, at the discretion of the
                Employer,
                to any Participant who is terminated from his or her employment with
                the
                Employer for Cause. For purposes hereof, a Participant whose employment
                is
                terminated for any of the following reasons shall be regarded as
                having
                been terminated for Cause: 

            

    

    

    
      	 	
              (a)

            	
              engaging
                in willful or grossly negligent misconduct that is materially injurious
                to
                the Employer; 

            

    

    

    
      	 	
              (b)

            	
              embezzlement
                or misappropriation of funds or property of the
                Employer;

            

    

    

    
      	 	
              (c)

            	
              conviction
                of a felony or the entrance of a plea of guilty or nolo contendere
                to a
                felony;

            

    

    

    
      	 	
              (d)

            	
              conviction
                of any crime involving fraud, dishonesty, moral turpitude or breach
                of
                trust or the entrance of a plea of guilty to such a crime;
                

            

    

    

    
      	 	
              (e)

            	
              failure
                or refusal by the Participant to devote full business time and attention
                to the performance of his or her duties and responsibilities if such
                breach has not been cured within fifteen (15) days after notice is
                given
                to the Participant; 

            

    

     

    
      	 	(f)	issuance
              of a final non-appealable order or other direction by a Federal or
              state
              regulatory agency  prohibiting the Participant’s employment in the
              business of banking; or

    

     

    
      	 	
              (g)

            	
              violation
                of an non-compete or non-solicitation
                agreements.

            

    

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    
      	
              4.4

            	
              Distributions
                to Specified Employee.

            

    

    

    
      	 	
              (a)

            	
              If
                any employee is a “Specified Employee,” as defined in subsection (b)
                below, upon a termination of employment for any reason other than
                Disability or death, a distribution may not be made before the date
                which
                is 6 (six) months after the date of separation from service (or,
                if
                earlier, the date of death of the
                employee).

            

    

    

    
      	 	
              (b)

            	
              A
                “Specified Employee” means a key employee (as defined in Code Section
                416(i) without regard to paragraph (5) thereof) of a corporation
                any stock
                in which is publicly traded on an established securities market or
                otherwise.

            

    

    

    ARTICLE
      V

    BENEFICIARY

    

    
      	
              5.1

            	
              Beneficiary.
                For purposes of this section, the Participant’s executed Participation
                Agreement shall dictate the Participant’s rights and responsibilities
                regarding the Participant’s
                Beneficiary.

            

    

    

    ARTICLE
      VI

    PLAN
      ADMINISTRATION

    

    
      	
              6.1

            	
              Administration.
                

            

    

    

    
      	 	
              (a)

            	
              General.
                The Plan shall be administered by the Administrator. The Administrator
                shall have sole and absolute discretion to interpret where necessary
                all
                provisions of the Plan and each Participation Agreement (including,
                without limitation, by supplying omissions from, correcting deficiencies
                in, or resolving inconsistencies or ambiguities in, the language
                of the
                Plan, a Participation Agreement, or between the Plan and a Participation
                Agreement), to determine the rights and status under the Plan of
                Participants or other persons, to resolve questions or disputes arising
                under the Plan and to make any determinations with respect to the
                benefits
                payable under the Plan and the persons entitled thereto as may be
                necessary for the purposes of the Plan. The Administrator’s determination
                of the rights of any Executive or former Executive hereunder shall
                be
                final and binding on all persons, subject only to the claims procedures
                outlined in Article 7 hereof.

            

    

    

    
      	 	
              (b)

            	
              Delegation
                of Duties.
                The Administrator may delegate any of its administrative duties,
                including, without limitation, duties with respect to the processing,
                review, investigation, approval and payment of benefits payable hereunder,
                to a named administrator or
                administrators.

            

    

    

    
      	
              6.2

            	
              Regulations.
                The Administrator may promulgate any rules and regulations it deems
                necessary in order to carry out the purposes of the Plan or to interpret
                the provisions of the Plan; provided, however, that no rule, regulation
                or
                interpretation shall be contrary to the provisions of the Plan. The
                rules,
                regulations and interpretations made by the Administrator shall,
                subject
                only to the claims procedure outlined in Article 7 hereof, be final
                and
                binding on all persons.

            

    

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    
      	
              6.3

            	
              Revocability
                of Administrator/Employer Action.
                Any action taken by the Administrator with respect to the rights
                or
                benefits under the Plan of any Executive or former Executive shall
                be
                revocable by the Administrator as to payments not yet made to such
                person
                in order to correct any incorrect payment to a Participant or a
                Beneficiary, and then only to the extent necessary to correct such
                error.
                Acceptance of any benefits under the Plan constitutes acceptance
                of, and
                agreement to, the Administrator’s making any appropriate adjustments in
                future payments to such person (or to recover from such person) any
                excess
                payment or underpayment previously made to such person.
                

            

    

    

    
      	6.4	
              Amendment.
                

            

    

    

    (a)     
      Right
      to
      Amend. The Employer, by written instrument, shall have the right to amend the
      Plan at any time and with respect to any provisions hereof, and all parties
      hereto or claiming any interest hereunder shall be bound by such amendment;
      provided, however, that no such amendment shall deprive the Participant or
      any
      Beneficiary(ies) of a rights accrued hereunder prior to the date of the
      amendment, including the right to receive the payment of his or her benefit
      upon
      a benefit entitlement event, or earlier as provided herein.

    

    (b)     
      Amendment
      Required by Law. Notwithstanding the provisions of Section 6.4(a), the Plan
      may
      be amended at any time, retroactively if required, if found necessary, in the
      opinion of the Board of the Employer, in order to ensure that the Plan is
      characterized as a non-tax-qualified plan of deferred supplemental retirement
      compensation maintained for members of a select group of Executives and thus
      exempt from ERISA and incompliance with all other provisions under the Internal
      Revenue Code of 1986, as amended from time to time, (“Code”) as such provisions
      relate to the original purpose of this Plan, supplemental retirement income
      to
      the Participant(s) and/or other related Plan and Employer objectives.

    

    
      	6.5	
              Termination.
                

            

    

    

    (a)     
      Employer’s
      Right to Terminate Plan. The Employer reserves the right, at any time, to
      terminate the Plan; provided however, that no such termination shall deprive
      the
 Participant
      or any beneficiary of a right accrued hereunder prior to the date of termination
      and provided that, upon termination, the Participant shall become fully and
      immediately vested in his or her SERP Benefit. In
      the
      event that this Plan is terminated, the distribution of the Participant’s SERP
      Benefit shall not be accelerated but shall be paid at such time and in such
      manner as determined under the terms of the Plan and Participation Agreement
      immediately prior to termination as if the Plan had not been terminated.
      Notwithstanding anything to the contrary contained herein, the Employer, in
      its
      sole discretion, may distribute all Participants’ SERP Benefit no earlier than
      twelve (12) calendar months from the date of the Plan termination and no later
      than twenty-four (24) calendar months from the date of the Plan termination,
      provided that the Employer also satisfies any additional requirements as may
      be
      imposed by Code Section 409A and regulations thereunder.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    (b)     
      Automatic
      Termination of Plan. The Plan shall terminate automatically upon the dissolution
      of the Employer; provide however, that no such termination shall deprive the
      Participant or Beneficiary of a right accrued hereunder prior to the date of
      termination and provided that, upon termination, the Participant shall become
      fully and immediately vested in his or her SERP Benefit. Distribution shall
      occur pursuant to Section 6.5(a).

    

    (c)     
      Change
      in
      Control Termination. The Employer may decide in its discretion to terminate
      the
      Plan in the event a Change in Control (as defined in Section 2.6) and distribute
       Participant’s
      SERP Benefit within twelve (12) months of the effective date of the Change
      in
      Control as allowed by law. Any corporation or other business organization that
      is a successor to the Employer by reason of a Change in Control shall have
      the
      right to become a party to the Plan by adopting the same by resolution of the
      entity’s board of directors or other appropriate governing body. If within
      thirty (30) days from the effective date of the Change in Control such new
      entity does not become a party hereto, as above provided, the full amount of
      the
      Participant’s SERP Benefit shall become immediately distributable to the
      Participant in a lump sum.

    

    
      	
              6.6

            	
              Withholding.
                The Employer shall deduct from any distributions hereunder any taxes
                or
                other amounts required by law to be withheld therefrom.
                

            

    

    

    ARTICLE
      VII

    CLAIMS
      ADMINISTRATION

    

    
      	
              7.1

            	
              General.
                If
                a Participant, Beneficiary or his or her representative is denied
                all or a
                portion of an expected Plan benefit for any reason and the Participant,
                Beneficiary or his or her representative desires to dispute the decision
                of the Administrator, he/she must file a written notification of
                his or
                her claim with the Administrator. 

            

    

    

    
      	
              7.2

            	
              Claims
                Procedure.
                Upon receipt of any written claim for benefits, the Administrator
                shall be
                notified and shall give due consideration to the claim presented.
                If any
                Participant or Beneficiary claims to be entitled to benefits under
                the
                Plan and the Administrator determines that the claim should be denied
                in
                whole or in part, the Administrator shall, in writing, notify such
                claimant within ninety (90) days of receipt of the claim that the
                claim
                has been denied. The Administrator may extend the period of time
                for
                making a determination with respect to any claim for a period of
                up to
                ninety (90) days, provided that the Administrator determines that
                such an
                extension is necessary because of special circumstances and notifies
                the
                claimant, prior to the expiration of the initial ninety (90) day
                period,
                of the circumstances requiring the extension of time and the date
                by which
                the Plan expects to render a decision. If the claim is denied to
                any
                extent by the Administrator, the Administrator shall furnish the
                claimant
                with a written notice setting
                forth:

            

    

    

    
      	
            	(a)	
              the
                specific reason or reasons for denial of the
                claim;

            

    

    

    
      	
            	(b)	
              a
                specific reference to the Plan provisions on which the denial is
                based;

            

    

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    
      	 	 	
              (c)

            	
              a
                description of any additional material or information necessary for
                the
                claimant to perfect the claim and an explanation of why such material
                or
                information is necessary; and

            

    

    

    
      	
            	(d)	
              an
                explanation of the provisions of this
                Article.

            

    

    

    
      	
              7.3

            	
              Right
                of Appeal.
                A
                claimant who has a claim denied under Section 7.2 may appeal to the
                Administrator for reconsideration of that claim. A request for
                reconsideration under this section must be filed by written notice
                within
                sixty (60) days after receipt by the claimant of the notice of denial
                under Section 7.2.

            

    

    

    
      	
              7.4

            	
              Review
                of Appeal.
                Upon receipt of an appeal the Administrator shall promptly take action
                to
                give due consideration to the appeal. Such consideration may include
                a
                hearing of the parties involved, if the Administrator feels such
                a hearing
                is necessary. In preparing for this appeal the claimant shall be
                given the
                right to review pertinent documents and the right to submit in writing
                a
                statement of issues and comments. After consideration of the merits
                of the
                appeal the Administrator shall issue a written decision which shall
                be
                binding on all parties subject to Section 7.7 below. The decision
                shall
                specifically state its reasons and pertinent Plan provisions on which
                it
                relies. The Administrator’s decision shall be issued within sixty (60)
                days after the appeal is filed, except that the Administrator may
                extend
                the period of time for making a determination with respect to any
                claim
                for a period of up to sixty (60) days, provided that the Administrator
                determines that such an extension is necessary because of special
                circumstances and notifies the claimant, prior to the expiration
                of the
                initial sixty (60) day period, of the circumstances requiring the
                extension of time and the date by which the Plan expects to render
                a
                decision. 

            

    

    

    
      	
              7.5

            	
              Designation.
                The Administrator may designate any other person of its choosing
                to make
                any determination otherwise required under this Article. Any person
                so
                designation shall have the same authority and discretion granted
                to the
                Administrator hereunder.

            

    

    

    
      	
              7.6

            	
              Litigation
                Costs.
                If a claimant brings a lawsuit for benefits hereunder, to enforce
                any
                right hereunder or for other relief arising out of the terms of the
                Plan,
                the costs and expenses of litigation by any party shall be borne
                by the
                losing party. The prevailing party shall recover as expenses all
                reasonable attorney’s fees incurred by it in connection with the
                proceedings or any appeals
                therefrom.

            

    

    

    
      	
              7.7

            	
              Arbitration.
                A
                claimant whose appeal has been denied under Section 7.4 shall have
                the
                right to submit said claim to final and binding arbitration in the
                Commonwealth of Massachusetts pursuant to the rules of the American
                Arbitration Association. Any such requests for arbitration must be
                filed
                by written demand to the American Arbitration Association within
                sixty
                (60) days after receipt of the decision regarding the appeal. The
                costs
                and expenses of arbitration, including the fees of the arbitrators,
                shall
                be borne by the losing party. The prevailing party shall recover
                as
                expenses all reasonable attorney’s fees incurred by it in connection with
                the arbitration proceeding or any appeals
                therefrom.

            

    

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      VIII

    MISCELLANEOUS

    

    
      	8.1	
              Administrator.
                The Administrator  is
                expressly empowered to interpret the Plan and to determine all questions
                arising in the administration, interpretation, and application of
                the
                Plan; to employ actuaries, accountants, counsel, and other persons
                it
                deems necessary in connection with the administration of the Plan;
                to
                request any information from the Employer it deems necessary to determine
                whether the Employer would be considered insolvent or subject to
                a
                proceeding in bankruptcy; and to take all other necessary and proper
                actions to fulfill its duties as Administrator. The Administrator
                is
                relieved of all responsibility in connection with its duties hereunder
                to
                the fullest extent permitted by law, except any breach of duty to
                the
                Participants or Beneficiaries. If any individual person shall have
                been
                delegated the duties or responsibilities as Administrator, such person
                shall not be liable for any actions by him or her hereunder unless
                due to
                his or her own gross negligence or willful misconduct and shall be
                indemnified and saved harmless by the Employer from and against all
                personal liability to which he or she may be subject by reason of
                any act
                done or omitted to be done in his or her official capacity as
                Administrator in good faith in the administration of the Plan, including
                all expenses reasonably incurred in his or her defense in the event
                the
                Employer fails to provide such defense upon the
                request.

            

    

    

    
      	
              8.2

            	
              No
                Assignment.
                No
                benefit under the Plan or a Participation Agreement shall be subject
                in
                any manner to anticipation, alienation, sale, transfer, assignment,
                pledge, encumbrance, or charge, and any such action shall be void
                for all
                purposes of the Plan or a Participation Agreement. No benefit shall
                in any
                manner be subject to the debts, contracts, liabilities, engagements,
                or
                torts of any person, nor shall it be subject to attachments or other
                legal
                process for or against any person.

            

    

    

    
      	
              8.3

            	
              No
                Employment Rights.
                Participation in this Plan and execution of a Participation Agreement
                shall not be construed to confer upon any Participant the legal right
                to
                be retained in the employ of the Employer, or give a Participant
                or
                Beneficiary, or any other person, any right to any payment whatsoever,
                except to the extent of the benefits provided for hereunder. Each
                Participant shall remain subject to discharge to the same extent
                as if
                this Plan had never been adopted and the Participation Agreement
                had never
                been executed.

            

    

    

    
      	
              8.4

            	
              Incompetence.
                If
                the Administrator determines that any person to whom a benefit is
                payable
                under this Plan is incompetent by reason of physical or mental disability,
                the Administrator shall have the power to cause the payments becoming
                due
                to such person to be made to another individual for the Participant’s
                benefit without responsibility of the Administrator to see to the
                application of such payments. Any payment made pursuant to such power
                shall, as to such payment, operate as a complete discharge of the
                Employer, the Administrator, and their
                representatives.

            

    

    

    
      	
              8.5

            	
              Identity.
                If, at any time, any doubt exists as to the identity of any person
                entitled to any payment hereunder or the amount or time of such payment,
                the Administrator shall be entitled to hold such sum until such identity
                or amount or time is determined or until an order of a court of competent
                jurisdiction is obtained. The Administrator shall also be entitled
                to pay
                such sum into court in accordance with the appropriate rules of law.
                Any
                expenses incurred by the Employer or Administrator incident to such
                proceeding or litigation shall be charged against the SERP Benefit
                of the
                affected Participant. 

            

    

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    
      	
              8.6

            	
              No
                Liability.
                No
                liability shall attach to or be incurred by any employee of the Employer
                or Administrator individually under or by reason of the terms, conditions,
                and provisions contained in this Plan, or for the acts or decisions
                taken
                or made hereunder or in connection therewith; and, as a condition
                precedent to the establishment of this Plan or the receipt of benefits
                hereunder, or both, such liability, if any, is expressly waived and
                released by each Participant and by any and all persons claiming
                under or
                through any Participant or any other person. Such waiver and release
                shall
                be conclusively evidenced by any act or participation in or the acceptance
                of benefits or the making of any election under this
                Plan.

            

    

    

    
      	
              8.7

            	
              Expenses.
                Except as otherwise provided in the Plan, all
                expenses incurred in the administration of the Plan shall be paid
                by the
                Employer.

            

    

    

    
      	
              8.8

            	
              Amendment
                and Termination.
                The Employer shall have the sole authority to modify, amend, or terminate
                this Plan subject to those limitations provided
                hereinabove.

            

    

    

    
      	
              8.9

            	
              Employer
                Determinations.
                Any determinations, actions, or decisions of the Employer (including
                but
                not limited to, Plan amendments and Plan termination) shall be made
                by the
                Board in accordance with its established procedures or by such other
                individuals, groups, or organizations that have been properly delegated
                by
                the Board to make such determination or
                decision.

            

    

    

    
      	
              8.10

            	
              Construction.
                All questions of interpretation, construction or application arising
                under
                or concerning the terms of this Plan and any Participation Agreement
                shall
                be decided by the Administrator, in its sole and final discretion,
                whose
                decision shall be final, binding and conclusive upon all
                persons.

            

    

    

    
      	
              8.11

            	
              Governing
                Law.
                To
                the extent not preempted by federal law, this Plan shall be governed
                by,
                construed and administered under the laws of the State of New
                York.

            

    

    

    
      	
              8.12

            	
              Severability.
                Should any provision of the Plan or any regulations adopted hereunder
                be
                deemed or held to be unlawful or invalid for any reason, such fact
                shall
                not adversely affect the other provisions or regulations unless such
                invalidity shall render impossible or impractical the functioning
                of the
                Plan and, in such case, the appropriate parties shall immediately
                adopt a
                new provision or regulation to take the place of the one held illegal
                or
                invalid.

            

    

    

    
      	
              8.13

            	
              Headings.
                The headings contained in the Plan are inserted only as a matter
                of
                convenience and for reference and in no way define, limit, enlarge,
                or
                describe the scope or intent of this Plan nor in any way shall they
                affect
                this Plan or the construction of any provision
                thereof.

            

    

    

    
      	
              8.14

            	
              Terms.
                Capitalized terms shall have meanings as defined herein. Singular
                nouns
                shall be read as plural, masculine pronouns shall be read as feminine, and
                vice versa, as appropriate.

            

    

    

    
      	
              8.15

            	
              Ownership
                of Assets; Relationship with Employer.
                Nothing contained in the Plan, and no action taken pursuant to its
                provisions, shall create or be construed to create a trust of any
                kind or
                a fiduciary relationship between the Employer and any Participant
                or any
                other person. To the extent that any person acquires a right to receive
                payments from the Employer under this Plan, such right shall be no
                greater
                than the right of an unsecured general creditor of the
                Employer.

            

    

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    
      	
              8.16

            	
              Deposits
                in Trust. 
                The Employer may, at its sole discretion, establish with a corporate
                trustee a grantor rabbi trust under which all or a portion of the
                assets
                of the Plan are to be held, administered and managed. The trust agreement
                evidencing the trust shall conform with the terms of Revenue Procedure
                92-64 or any successor procedure. The Employer in its sole discretion
                may
                make deposits to augment the principal of such
                trust.

            

    

    

    
      	
              8.17

            	
              Right
                of Setoff.
                The Employer may, to the extent permitted by applicable law, deduct
                from
                and setoff against any amounts payable to a Participant from this
                Plan
                such amounts as may be owed by a Participant to the Employer, although
                the
                Participant shall remain liable for any part of the Participant’s payment
                obligation not satisfied through such deduction and setoff; provided,
                however, that this setoff may occur only at the date on which the
                amount
                would otherwise be distributed to the Participant as required by
                Code
                Section 409A. By electing to participate in the Plan, the Participant
                agrees to any deduction or setoff under this Section 8.17.
                

            

    

    

    
      	
              8.18
                

            	
              409A
                Compliance.
                This Plan will, at all times, be operated in good faith compliance
                with
                Code Section 409A of the Code in accordance with Internal Revenue
                Service
                Notice 2005-1 and proposed regulations thereunder (and any subsequent
                IRS
                notices or guidance).
                In
                the event that any provision of this Plan is inconsistent with Code
                Section 409A or such guidance, then the applicable provisions of
                Code
                Section 409A shall supersede such provision. Nothing herein shall
                be
                construed as an entitlement to our guarantee of any particular tax
                treatment to a Participant.

            

    

     

    
      	 	
              IN
                WITNESS WHEREOF,
                the Employer has executed this Supplemental Executive Retirement
                Plan
                this 28
                day of April, 2006.

            

    

    

    
      	 	 	 
	 	
              FAIRPORT
                SAVINGS
                BANK

            
	 
 	 
 	 
 
	 	By:  	/s/
              Dana
              C. Gavenda
	 	 	
              

            
	 	Title: 	President
              & CEO
	 	 	
              
 

    

     

    
      
        
        

      

      
        -11-

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