Document:

Exhibit 10.1

 

Execution Version

 

GUARANTEE

 

THIS GUARANTEE (this “Guarantee”) is made as of February 9, 2016, by Algonquin Power & Utilities Corp., a corporation organized under the Laws of Canada (“Guarantor”), in favor of The Empire District Electric Company, a Kansas corporation (the “Company”). Capitalized terms used but not defined herein have the meanings given to such terms in the Merger Agreement (defined below).

 

WHEREAS, contemporaneously with the execution and delivery of this Guarantee, Liberty Utilities (Central) Co., a Delaware corporation (“Parent”), and its wholly owned subsidiary Liberty Sub Corp., a Kansas corporation (“Merger Sub”), are entering into that certain Agreement and Plan of Merger, dated as of the date hereof, by and among the Company, Parent, and Merger Sub (as amended, supplemented or otherwise modified from time to time, the “Merger Agreement”); and

 

WHEREAS, Parent is an indirect wholly owned subsidiary of Guarantor, and Guarantor shall derive substantial benefit from the transactions contemplated by the Merger Agreement and is executing and delivering this Guarantee to induce the Company to enter into the Merger Agreement.

 

NOW, THEREFORE, in consideration of the execution of the Merger Agreement by the Company and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Guarantor agrees as follows:

 

1.                                      Guarantee.  Guarantor hereby unconditionally and irrevocably guarantees to the Company the full and prompt payment and performance, when due, of all obligations of Parent under the Merger Agreement (collectively, the “Obligations”).

 

2.                                      Nature of Guarantee. This is an unconditional guarantee of payment and performance and not merely of collection, and a separate action or actions may be brought against Guarantor to enforce this Guarantee, irrespective of whether any action is brought against Parent or whether Parent is joined in any such action or actions. The Company shall not be obligated to file any claim relating to the Obligations in the event that Parent or Merger Sub becomes subject to any bankruptcy, reorganization or similar proceeding, and the failure of the Company to so file shall not affect Guarantor’s obligations hereunder.

 

3.                                      Payment or Performance.  In the event of any failure by Parent to pay or perform any Obligation when due in accordance with the terms of the Merger Agreement, Guarantor hereby agrees that, upon receipt of written notice from the Company of such failure, Guarantor shall promptly (but in any event within five (5) Business Days following such notice) pay or perform such Obligation in accordance with the terms of the Merger Agreement; provided, however, that Guarantor shall not be required to pay or perform any Obligation while the validity or existence of such Obligation is being disputed in good faith by Parent in accordance with the terms of the Merger Agreement. All sums payable by Guarantor hereunder shall be paid in United States currency in immediately available funds. In furtherance of the foregoing, the Guarantor acknowledges that the Company may, in its sole discretion, bring and prosecute a separate action or actions against the Guarantor to enforce this Guarantee for such amount, regardless of whether any action is brought against Parent or Merger Sub or whether Parent or Merger Sub is joined in any such action.

 

 

4.                                      Reinstatement. This Guarantee shall continue to be effective or shall be reinstated, as the case may be, if at any time any of the amounts paid to the Company, in whole or in part, are rescinded, required to be repaid or otherwise must be returned for any reason whatsoever, all as if such payments had not been made.

 

5.                                      Certain Waivers.

 

(a)                                 Guarantor agrees that the obligations of Guarantor hereunder shall not be released, modified or discharged, in whole or in part, by: (i) any change in the time, manner or place of payment or performance of any of the Obligations, or any other amendment or waiver of, or any consent to departure from, any of the terms of the Obligations or of the Merger Agreement; (ii) any release or amendment or waiver of, or consent to departure from, any other guarantee or other credit support document, or any exchange, release or non-perfection of any collateral, security or other credit support for the Obligations; (iii) the failure or delay of the Company to enforce any right or remedy against Parent, Merger Sub Guarantor, or any other Person; (iv) the adequacy of any other means the Company may have of obtaining payment or performance of the Obligations; (v) any change in the corporate existence, structure or ownership of Parent or Guarantor; (vi) any voluntary or involuntary insolvency, bankruptcy, reorganization, liquidation, dissolution, receivership, marshaling of assets, assignment for the benefit of creditors or other similar proceeding affecting Parent or Merger Sub or any other Person now or hereafter liable with respect to the Obligations (vii) any change in the applicable Law of any jurisdiction; or (viii) any other act or omission that may vary the risk of or to Guarantor or otherwise operate as a discharge of Guarantor as a matter of law or equity, other than the indefeasible payment or performance of the Obligations in accordance with their terms.

 

(b)                                 Guarantor hereby expressly waives (i) any and all rights or defenses arising by reason of any Law that would otherwise require any election of remedies by the Company; (ii) promptness, diligence, notice of the acceptance of this Guarantee and of the Obligations, presentment, demand for payment, notice of non-performance, default, dishonor and protest, notice of any Obligations incurred and all other notices of any kind, other than notices expressly required to be given under the Merger Agreement or this Guarantee; (iii) any and all defenses which may be available by virtue of any valuation, stay, moratorium Law or other similar Law now or hereafter in effect; (iv) any right to require the marshaling of assets of Parent, Merger Sub or of any other Person; (v) all rights of subrogation, indemnification, reimbursement, exoneration or contribution (whether arising by contract or operation of law or in equity, including, without limitation, any such right under bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights) arising prior to the satisfaction in full of the Obligations; and (vi) all suretyship defenses generally.

 

(c)                                  Notwithstanding any other provision hereof, Guarantor hereby reserves to itself all rights, defenses and counterclaims to which Parent is entitled under the Merger Agreement, other than (i) defenses arising out of any bankruptcy, insolvency, or similar proceedings affecting Parent or its assets, and (ii) defenses arising from any lack of authority of Parent to enter into or perform its obligations under the Merger Agreement or any other agreement or instrument referred to therein. All limitations on the liability of Parent expressly set forth in the Merger Agreement shall apply equally to limit the liability of Guarantor hereunder, and shall constitute a single limitation on the combined liability of Parent under the Merger Agreement and of Guarantor under this Guarantee.

 

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6.                                      Representations and Warranties. Guarantor hereby represents and warrants to the Company that:

 

(a)                                 Guarantor is a corporation, duly organized, validly existing and in good standing under the Laws of Canada and has all necessary corporate power and authority to enter into and carry out its obligations hereunder.

 

(b)                                 The execution, delivery and performance of this Guarantee by Guarantor have been duly authorized by all necessary action of Guarantor, and Guarantor has duly executed and delivered this Guarantee. This Guarantee constitutes the legal, valid and binding obligation of Guarantor enforceable against Guarantor in accordance with its terms, except as such enforcement may be affected by applicable bankruptcy, insolvency, moratorium, reorganization, fraudulent conveyance, and other similar laws affecting creditors’ rights generally.

 

(c)                                  The execution, delivery and performance of this Guarantee do not (i) conflict with, or result in any violation of any provision of, the Organizational Documents of Guarantor, (ii) conflict with, result in any violation of or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of any material obligation or to the loss of a material benefit under any material Contract to which Guarantor is a party or by which any of its properties or assets is bound or under any material Permit applicable to the business of Guarantor, or (iii) conflict with, or result in any violation of any provision of, any Judgment or Law, in each case, applicable to Guarantor or its properties or assets.

 

(d)                                 All Consents required to be obtained from, and all Filings required to be made with, any Governmental Entity necessary for the due execution, delivery and performance of this Guarantee by Guarantor have been obtained or made and all conditions thereof have been duly complied with, and no other action by, and no notice to or filing with, any Governmental Entity is required in connection with the execution, delivery or performance of this Guarantee.

 

7.                                      Notices. All notices and other communications under this Guarantee shall be in writing and shall be deemed given (a) when delivered personally by hand (with written confirmation of receipt by other than automatic means, whether electronic or otherwise), (b) when sent by facsimile or email (with written confirmation of transmission) or (c) one (1) Business Day following the day sent by an internationally recognized overnight courier (with written confirmation of receipt), in each case, at the following addresses or facsimile numbers (or to such other address or facsimile number as Guarantor or the Company, as the case may be, may have specified by notice given to the other pursuant to this provision):

 

If to Guarantor:

 

Algonquin Power & Utilities Corp. 
 354 Davis Rd, Suite 100
 Oakville, Ontario, Canada L6J 2X1 
 Attention: Chief Executive Officer 
 Fax: (905) 465-4514

 

with a copy to:

 

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Algonquin Power & Utilities Corp. 
 354 Davis Rd, Suite 100
 Oakville, Ontario, Canada L6J 2X1 
 Attention: Chief General Counsel 
 Fax: (905) 465-4540

 

and with a copy (which shall not constitute notice) to:

 

Husch Blackwell LLP
 4801 Main Street, Suite 1000 
 Kansas City, Missouri 64112 
 Attention: James G. Goettsch 
 Fax: (816) 983-8080

 

If to the Company:

 

The Empire District Electric Company

602 S. Joplin Avenue

Joplin, Missouri 64801

Attn: Chief Executive Officer

Facsimile: (417) 625-5169

 

with a copy (which shall not constitute notice) to:

 

Cahill Gordon & Reindel LLP 
 80 Pine Street
 New York, New York 10005 
 Attn: Michael Sherman
 Facsimile: (212) 378-2598

 

8.                                      Cumulative Rights. Each right, remedy and power hereby granted to the Company or allowed it by Law or other agreement shall be cumulative and not exclusive of any other, and may be exercised by the Company at any time or from time to time.

 

9.                                      Waiver and Amendment. No failure on the part of the Company to exercise, and no delay by the Company in exercising, any right, remedy or power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise by the Company of any right, remedy or power hereunder preclude any other or future exercise of any right, remedy or power hereunder. This Guarantee may be amended only by an instrument in writing executed by Guarantor and the Company.

 

10.                               Assignment. Neither this Guarantee nor any of the rights, interests or obligations under this Guarantee shall be assigned, in whole or in part, by operation of law or otherwise, by Guarantor without the prior written consent of the Company, or by the Company without the prior written consent of Guarantor. Any purported assignment without such consent shall be void. Subject to the preceding sentences, this Guarantee shall be binding on Guarantor, its successors and permitted assigns, and shall inure to the benefit of, and be enforceable by, the Company and its successors and permitted assigns.

 

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11.                               Parties in Interest. This Guarantee is solely for the benefit of the Company and its successors and permitted assigns, and is not intended to, and shall not, confer any rights or remedies upon any other Person.

 

12.                               Severability. Any term or provision of this Guarantee that is invalid or unenforceable in any situation in any jurisdiction will not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction.

 

13.                               Governing Law. This Guarantee, and all Claims or causes of action (whether in contract or in tort or otherwise, or whether at law (including at common law or by statute) or in equity) that may be based on, arise out of or relate to this Guarantee or the negotiation, execution, performance or subject matter hereof, shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to principles of conflict of laws.

 

14.                               Submission to Jurisdiction. All Claims arising from, under or in connection with this Guarantee shall be raised to and exclusively determined by the Court of Chancery of the State of Delaware or, if such court disclaims (or does not have) jurisdiction, the U.S. District Court for the District of Delaware, to whose jurisdiction and venue Guarantor and (by acceptance of this Guarantee) the Company unconditionally consent and submit. Guarantor and (by acceptance of this Guarantee) the Company hereby irrevocably and unconditionally waives any objection to the laying of venue of Claim arising out of this Guarantee in such courts and hereby further irrevocably and unconditionally waives and agree not to plead or claim in any such court that any such Claim brought in any such court has been brought in an inconvenient forum. Guarantor further agrees that service of any process, summons, notice or document by U.S. registered mail to the respective addresses set forth in Section 7 hereof shall be effective service of process for any Claim brought against it in any such court.

 

15.                               Waiver of Jury Trial. GUARANTOR AND (BY ACCEPTANCE OF THIS GUARANTEE) THE COMPANY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF THIS GUARANTEE.

 

16.                               Counterparts. This Guarantee may be executed in one or more counterparts (including by means of facsimile or email in.pdf format), all of which shall be considered one and the same instrument, and shall become effective when one or more counterparts have been signed by Guarantor and delivered to the Company, and by the Company and delivered to Guarantor.

 

[Signature pages follow]

 

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IN WITNESS WHEREOF, Guarantor has caused this Guarantee to be executed and delivered as of the date first written above by its officers thereunto duly authorized.

 

	
 
    	
ALGONQUIN POWER &   UTILITIES CORP.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ian Robertson
    
	
 
    	
 
    	
Name:
    	
Ian Robertson
    
	
 
    	
 
    	
Title:
    	
Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David Bronicheski
    
	
 
    	
 
    	
Name:
    	
David Bronicheski
    
	
 
    	
 
    	
Title:
    	
Chief Financial Officer
    

 

Signature Page to Guarantee

 

 

	
ACCEPTED BY:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
THE EMPIRE DISTRICT   ELECTRIC COMPANY
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Brad Beecher
    	
 
    
	
Name: Brad Beecher
    	
 
    
	
Title: President and   Chief Executive Officer
    	
 
    
			

 

Signature Page to GuaranteeExhibit 10.1

PRUDENTIAL BANCORP, INC.

PRUDENTIAL SAVINGS BANK

RETIREMENT AGREEMENT

 

This Retirement Agreement
(the “Agreement”) by and among Prudential Bancorp, Inc. (the “Company”), Prudential Savings Bank (the “Bank”
and collectively with the Company, “Prudential”), and Thomas A. Vento is entered into as of December 22, 2015.

 

WHEREAS, Mr. Vento
currently serves as a member of the Board and as Chairman of the Board of Directors of each of the Company and the Bank;

 

WHEREAS, Prudential
and Mr. Vento previously entered into a retirement and transition agreement dated as of May 13, 2015 (the “Transition Agreement”);

 

WHEREAS, Mr. Vento
also has previously entered into an Endorsement Split-Dollar Agreement with the Bank dated January 1, 2006 (the “Split-Dollar
Agreement”), providing for certain benefits with respect to split-dollar insurance maintained by the Bank for his benefit;

 

WHEREAS, Mr. Vento
has provided valuable services to the Bank for more than fifty years and to the Company since its formation in 2013 (and to its
predecessor from its formation in 2004);

 

WHEREAS, Mr. Vento
desires to resign his position as Chairman of the Board of Directors of each of the Company and the Bank as well as retire as a
member of the Board of each of the Company and the Bank; and

 

WHEREAS, Mr. Vento
is willing to relinquish his rights under the Transition Agreement and to have it superseded by this Agreement.

 

NOW, THEREFORE,
in consideration of the mutual covenants set forth herein and other good and valuable consideration, the parties hereto agree as
follows:

 

1.           Effective
Date. The “Effective Date” of the Agreement is December 22, 2015.

 

2.           Service
on the Boards; Retirement.

 

(a)          As
of the Effective Date, Mr. Vento shall resign from his position as Chairman of the Board of the Board of Directors of each of the
Company and the Bank.

 

(b)          As
of the Effective Date, Mr. Vento will retire from his position as a member of the Board of Directors of each of the Company and
the Bank.

 

(c)          Mr.
Vento is hereby appointed, as of the Effective Date, as a director emeritus of the Bank to serve in that capacity, which Mr. Vento
accepts, through February 29, 2020 (“Service Period”). Mr. Vento will have no specified duties except as may be mutually
agreed to by the Bank and Mr. Vento.

 

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3.           Compensation;
Benefits.

 

(a)          Compensation.
Mr. Vento shall not be entitled to any cash compensation for his service as a director emeritus during the Service Period. The
Chairman’s fee, as such term is defined in the Transition Agreement, shall cease as of the Effective Date.

 

(b)          Split-Dollar
Agreement. The Split-Dollar Agreement shall remain in full force and effect and Mr. Vento’s rights and privileges thereunder
shall not be affected by or be subject to the provisions of this Agreement. The Bank agrees during the period this Agreement is
in effect to not terminate the Split-Dollar Agreement. In addition, the Bank agrees to maintain during the period this Agreement
is in effect the bank owned life insurance owned by the Bank that provides the life insurance benefits covered by the Split-Dollar
Agreement.

 

(c)          Medical,
Dental and Other Insurance Benefits. Effective as of the Effective Date, the Bank and/or the Company shall cease to provide
medical and dental insurance for the benefit of Mr. Vento and his spouse at no cost to Mr. Vento and his spouse. Notwithstanding
the forgoing, Mr. Vento may elect continued medical and dental coverage at his expense pursuant to COBRA to the extent and for
the amount of time it is permissible to maintain continued COBRA coverage. In addition to the life insurance coverage provided
pursuant to the Split-Dollar Agreement as set forth in Section 3(b), the Bank will promptly assign to Mr. Vento, effective as of
the Effective Date, the supplemental life insurance policy issued by Lincoln National Insurance Company, Policy No. JF5434389 (the
“Policy”), covering Mr. Vento; Mr. Vento will be responsible for payment of any and all premiums due and payable after
the Effective Date with respect to the Policy.

 

(d)          Existing
Stock Options and Restricted Stock Awards. The 114,456 vested stock options held by Mr. Vento as of the Effective Date of this
Agreement to purchase shares of common stock of the Company shall remain outstanding and exercisable in accordance with their terms.
The options covering 121,511 shares of common stock of the Company and the restricted stock awards covering 63,583 shares which
remain unvested as of the Effective Date will continue to vest in accordance with the terms of their grant so long as Mr. Vento
continues to serve as a director emeritus of the Bank.

 

(e)          Employee
Benefit Plans. Mr. Vento shall be entitled to receive his vested benefits under the Bank’s Employee Stock Ownership Plan,
the Bank’s 401(k) profit sharing plan and the Bank’s multiple employer defined benefit pension plan in accordance with
the terms of such plans. As of October 1, 2015, Mr. Vento was no longer entitled to participate in any of the employee benefit
plans or programs offered by the Company, the Bank or any of their subsidiaries (except to the extent permitted by the terms of
such plans), and no additional benefits accrued or vested or shall accrue or vest on behalf of Mr. Vento under such employee benefit
plans or programs subsequent to October 1, 2015, except as set forth in Sections 3(b), 3(c) and 3(d) hereof or as otherwise provided
under the terms of such plans.

 

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(f)           Expenses.
The Company and/or the Bank shall reimburse Mr. Vento or otherwise provide for or pay for all reasonable expenses, if any, incurred
by Mr. Vento at the specific request of the Company or the Bank, subject to such reasonable documentation as may be requested by
the Company or the Bank. If such expenses are paid in the first instance by Mr. Vento, the Company and/or the Bank shall reimburse
Mr. Vento therefor upon receipt of such reasonable documentation as may be requested by the Company. Such reimbursements or payments
shall be made promptly by the Company or the Bank, as applicable, and, in any event, no later than March 15th of the
year immediately following the year in which such expenses were incurred.

 

(g)          Transfer
of Automobile. The Bank shall transfer to the Executive the title on the company-provided automobile currently used by the
Executive. Such title transfer shall occur within ten (10) business days following the Effective Date, without the payment of any
consideration by the Executive; provided, however, Mr. Vento will be responsible for the expenses incurred in connection
with the transfer thereof.

 

4.            Termination.

 

(a)          Cause.
The Company and the Bank may terminate Mr. Vento’s service as a director emeritus during the Service Period for Cause. For
purposes of this Agreement, “Cause” shall mean removal of Mr. Vento as a director emeritus because of personal dishonesty,
incompetence, willful misconduct, 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, willful conduct which is materially detrimental (monetarily or otherwise) to the Company and/or the Bank or material breach
of any provision of this Agreement, in each case with respect to matters that occurred, arose or were discovered during the Service
Period. Notwithstanding the foregoing, for purposes hereof, a determination by regulatory authorities that Mr. Vento has willfully
violated any applicable law, rule or regulation or final cease-and-desist order shall constitute Cause.

 

For purposes of this provision,
no act or failure to act, on the part of Mr. Vento, shall be considered “willful” unless it is done, or omitted to
be done, by him in bad faith or without reasonable belief that his action or omission was in the best interests of the Company
and/or the Bank. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board of Directors
of either the Company or the Bank or based upon the advice of counsel for the Company and/or the Bank shall be conclusively presumed
to be done, or omitted to be done, by Mr. Vento in good faith and in the best interests of the Company and the Bank. The removal
of Mr. Vento as a director emeritus for conduct described the paragraph above shall not be deemed to be for Cause unless and until
there shall have been delivered to him a copy of a resolution duly adopted by the affirmative vote of a majority of the entire
membership of the Board of Directors of the Company and/or the Bank (excluding Mr. Vento) at a meeting of the Board of Directors
called and held for such purpose (after not less than ten (10) days advance notice is provided to Mr. Vento and he is given an
opportunity, together with counsel chosen by him, to be heard before the Board of Directors), finding that, in the good faith opinion
of the Board, Mr. Vento is guilty of the conduct described above, and specifying the particulars thereof in detail.

 

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As of the date hereof,
neither Mr. Vento nor the Company is aware of facts that would constitute “Cause” as defined under this Agreement.

 

(b)          Notice
of Termination. Any termination by the Company and/or the Bank for Cause shall be communicated by a written Notice of Termination
to the other party hereto given in accordance with Section 12 of this Agreement. For purposes of this Agreement, a “Notice
of Termination” means a written notice which (i) indicates the specific termination provision in this Agreement relied upon,
(ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for removal
of Mr. Vento as a director emeritus under the provision so indicated and (iii) if the Date of Termination (as defined below) is
other than the date of receipt of such notice, specifies the termination date (which date shall be not more than thirty (30) days
after the giving of such notice). The failure by the Company and/or the Bank to set forth in the Notice of Termination any fact
or circumstance which contributes to a showing of Cause shall not waive any right of the Company and/or the Bank, hereunder or
preclude the Company and/or the Bank, respectively, from asserting such fact or circumstance in enforcing his or the Company’s
or the Bank’s rights hereunder.

 

(e)          Date
of Termination. “Date of Termination” means if Mr. Vento’s service as a director emeritus is terminated by
the Company and/or the Bank for Cause, the date on which the Notice of Termination is given, or any later date specified therein
within thirty (30) days of delivery of such notice, as the case may be.

 

5.           Covenants.

 

(a)          Mr.
Vento agrees that he shall not make, or cause to be made, any disparaging or critical remarks, comments or statements about or
against the Company or its subsidiaries (including the Bank) or affiliates or any director, officer, employee or customer of any
such entities at any time in the future, except for any statements by him made pursuant to lawful subpoena or legal process. The
Bank will advise the members of its Board of Directors (and those of the Company’s Board of directors) and all executive
officers of the Bank and the Company (collectively, the “Persons to be Advised”) that they should not make public statements
that are in any way disparaging or negative towards Mr. Vento. The Bank will advise the Persons to be Advised that a non-disparagement
agreement is in effect, and will use reasonable efforts to enforce compliance with this Agreement. Notwithstanding the foregoing
agreement, the parties hereto recognize and acknowledge that the Bank and the Company will not be liable for statements between
the Bank and/or the Company and its independent auditors, state and federal banking regulators, the Securities and Exchange Commission
or statements necessary to comply with applicable law or regulation. In addition, nothing contained herein shall prevent any of
the parties hereto from making any truthful statement in connection with any legal proceeding or investigation by the Company or
any governmental authority.

 

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(b)          Except
as required by law or regulation (including without limitation in connection with any judicial or administrative process or proceeding),
Mr. Vento shall keep secret and confidential and shall not disclose to any third party (other than the Bank or any of its subsidiaries
or affiliates or any persons employed or engaged by such entities) in any fashion or for any purpose whatsoever any information
regarding the Bank or any of its subsidiaries or affiliates which is not available to the general public to which Mr. Vento was
granted access at any time prior to the Effective Date or during the Service Period, including, without limitation, any of the
following information relating to the Bank or any Bank subsidiary or affiliate: business or operations; plans, strategies, prospects
or objectives; products, technology, processes or specifications; research and development operations or plans; the names and addresses
of customers or prospective customers, including any customer lists; work performed or services rendered for any customer; any
method and/or procedures relating to projects or other work developed for the Bank or any subsidiary or affiliate; distribution,
sales, service, support and marketing practices and operations; financial condition, results of operations and prospects; operational
strengths and weaknesses; and personnel and compensation policies and procedures.

 

(c)          Mr.
Vento agrees that damages at law will be an insufficient remedy to the Company and the Bank in the event that Mr. Vento violates
any of the provisions of subsections (a) or (b) of this Section 5, and that the Company or the Bank may apply for and, upon the
requisite showing, have injunctive relief in any court of competent jurisdiction to restrain the breach or threatened or attempted
breach of or otherwise to specifically enforce any of the covenants contained in subsections (a) or (b) of this Section 5. Mr.
Vento hereby consents to the right of the Company and the Bank to seek (i) any injunction (temporary or otherwise) and (ii) to
any other court order which may be issued against Mr. Vento from violating, or directing Mr. Vento to comply with, any of the covenants
in subsections (a) or (b) of this Section 5. Mr. Vento also agrees that such remedies that may be obtained shall be in addition
to any and all remedies, including damages, available to the Company or the Bank against Mr. Vento for such breaches or threatened
or attempted breaches.

 

(d)          In
addition to the rights of the Bank set forth in subsection (c) of this Section 5, in the event that Mr. Vento shall violate the
terms and conditions of subsections (a) or (b) of this Section 5, the Company and its subsidiaries and affiliates may terminate
any payments or benefits of any type and regardless of source payable by the Company or its subsidiaries or affiliates, if applicable,
to Mr. Vento, other than with respect to payments or benefits to Mr. Vento under plans or arrangements that are covered by the
Employee Retirement Income Security Act of 1974, as amended (“ERISA”).

 

6.            Designation
of Beneficiary. Mr. Vento may from time to time, by providing a written notification to the Bank and/or the Company, designate
any person or persons (who may be designated concurrently, contingently or successively), his estate or any trust or trusts created
by him to receive benefits which are provided under the terms of this Agreement. Each beneficiary designation shall revoke all
prior designations and will be effective only when filed in writing with the Compensation Committee of the Board of Directors of
the Bank (the “Committee”). If Mr. Vento fails to designate a beneficiary or if a beneficiary dies before the date
of Mr. Vento’s death and no contingent beneficiary has been designated, then the benefits which are payable as aforesaid
shall be paid to his estate. If benefits commence to be paid to a beneficiary and such beneficiary dies before all benefits to
which such beneficiary is entitled have been paid, the remaining benefits shall be paid to the successive beneficiary or beneficiaries
designated by Mr. Vento, if any, and if none to the estate of such beneficiary.

 

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7.           Unsecured
Promise. Nothing contained in this Agreement shall create or require the Company or the Bank to create a trust of any kind
to fund the benefits provided hereunder. Any insurance policy or other asset acquired or held by, or on behalf of, the Bank or
funds allocated by the Bank in connection with the liabilities assumed by the Bank pursuant to this Agreement shall not be deemed
to be held under any trust for the benefit of Mr. Vento or his beneficiaries or to be a security for the performance of the obligations
of the Bank pursuant hereto but shall be and remain a general asset of the Bank. To the extent that Mr. Vento or any other person
acquires a right to receive payments from the Bank hereunder, such right shall be no greater than the right of any unsecured general
creditor of the Bank.

 

8.           Release
of the Company and Related Parties.

 

(a)          In
consideration of the payments and the benefits to be provided to Mr. Vento pursuant to this Agreement, the sufficiency of which
is acknowledged hereby, Mr. Vento, with the intention of binding himself and his heirs, executors, administrators and assigns,
does hereby release, remise, acquit and forever discharge the Company, the Bank and each of their subsidiaries and affiliates (the
“Company Affiliated Group”), their present and former officers, directors, executives, agents, attorneys and employees,
and the successors, predecessors and assigns of each of the foregoing (collectively, the “Company Released Parties”),
of and from any and all claims, actions, causes of action, complaints, charges, demands, rights, damages, debts, sums of money,
accounts, financial obligations, suits, expenses, attorneys’ fees and liabilities of whatever kind or nature in law, equity
or otherwise, whether accrued, absolute, contingent, unliquidated or otherwise and whether now known or unknown, suspected or unsuspected,
which Mr. Vento, individually or as a member of a class, now has, owns or holds, or has at any time heretofore had, owned or held,
against any Company Released Party in any capacity, including, without limitation, any and all claims (i) arising out of or in
any way connected with Mr. Vento’s service to any member of the Company Affiliated Group (or the predecessors thereof) through
and including the Effective Date in any capacity, or the termination of such service in any such capacity as of the Effective Date,
(ii) for severance or vacation benefits, unpaid wages, salary or incentive payments, (iii) for breach of contract, wrongful discharge,
impairment of economic opportunity, defamation, intentional infliction of emotional harm or other tort, (iv) for any violation
of applicable state and local labor and employment laws (including, without limitation, the Pennsylvania Human Relations Act, the
Pennsylvania Minimum Wage Act, the Pennsylvania Wage Payment and Collection Law and all other laws concerning unlawful and unfair
labor and employment practices), (v) for employment discrimination under any applicable federal, state or local statute, provision,
order or regulation, and including, without limitation, any claim under Title VII of the Civil Rights Act of 1964 (“Title
VII”), the Civil Rights Act of 1988, the Fair Labor Standards Act, the Americans with Disabilities Act (“ADA”),
ERISA, the Age Discrimination in Employment Act (“ADEA”), the Older Workers Benefit Protection Act, the Family and
Medical Leave Act and any similar or analogous state statute, and (vi) under the Employment Agreement, excepting only:

 

(A)         the
rights of Mr. Vento as a shareholder of the Company, including his stock options and restricted stock awards as described in Section
3(d);

 

    	 	6	 

     

    

 

(B)         the
right of Mr. Vento to receive COBRA continuation coverage in accordance with applicable law;

 

(C)         rights
to indemnification Mr. Vento may have under (i) applicable corporate law, (ii) the articles of incorporation, charter or bylaws
of any entities included in the Company Affiliated Group, (iii) any other agreement between Mr. Vento and a Company Released Party,
or (iv) as an insured under any director’s and officer’s liability insurance policy now or previously in force;

 

(D)         claims
for vested benefits under any health, disability, retirement, life insurance or other similar “employee benefit plan”
(within the meaning of Section 3(3) of ERISA) of the Company Affiliated Group existing as of the Effective Date (the “Company
Benefit Plans”); and

 

(E)          the
rights of Mr. Vento under this Agreement.

 

(b)          Mr.
Vento acknowledges and agrees that the release of claims set forth in this Section 7 is not to be construed in any way as an admission
of any liability whatsoever by any Company Released Party, with any such liability being expressly denied.

 

(c)          The
release of claims set forth in this Section 8 applies to any relief no matter how called, including, without limitation, wages,
back pay, front pay, compensatory damages, liquidated damages, punitive damages, damages for pain or suffering, costs, and attorney’s
fees and expenses.

 

(d)          Mr.
Vento specifically acknowledges that his acceptance of the terms of the release of claims set forth in this Section 8 is, among
other things, a specific waiver of his rights, claims and causes of action under Title VII, ADEA, ADA and any state or local law
or regulation in respect of discrimination of any kind.

 

(e)          Mr.
Vento covenants and agrees that neither he, nor any person or entity on his behalf, will file or cause or permit to be filed any
civil action, suit, arbitration or legal proceeding seeking any type of personal relief, or share in any remedy against the Bank
or any other Company Released Party, involving any matter which: (i) is the subject of this Agreement; (ii) arises from, or relates
or refers in any way to, Mr. Vento’s employment with the Bank, the termination of that employment, the Employment Agreement,
or the action or inaction of any of the Company Released Parties through and including the Effective Date; or (iii) occurred at
any time in the past up to and including the date of Mr. Vento’s execution of this Agreement, or involves any continuing
effects of any actions or practices which may have arisen or occurred on or prior to his execution of this Agreement; provided,
however, that nothing in this Agreement prevents Mr. Vento from (x) filing, cooperating with, or participating in any proceeding
before the Equal Employment Opportunity Commission or a state fair employment practices agency, except that he acknowledges that
he shall not be able to recover any monetary benefits in connection with any such claim, charge or proceeding, or (y) initiating
an action to enforce the terms of this Agreement or pursue claims pursuant to subsections (A) thorough (D) of Section 7(a).

 

    	 	7	 

     

    

 

(f)           Mr.
Vento shall have a period of 21 days to consider whether to execute this Agreement. To the extent Mr. Vento has executed this Agreement
within less than 21 days after its delivery to him, Mr. Vento hereby acknowledges that his decision to execute this Agreement prior
to the expiration of such 21-day period was entirely voluntary. If Mr. Vento accepts the terms hereof and executes this Agreement,
he may thereafter, for a period of seven days following (and not including) the date of execution (the “Revocation Period”),
revoke this Agreement. If Consultant determines to revoke this Agreement prior to the expiration of the Revocation Period, he shall
provide a written notice to the Bank in accordance with Section 12 prior to such expiration. If no such revocation occurs, this
Agreement shall become irrevocable in its entirety, and binding and enforceable against Mr. Vento, on the day next following the
day on which the foregoing Revocation Period has elapsed. Any revocation of this Agreement shall be deemed for all purposes a revocation
of this Agreement in its entirety.

 

(g)          Mr.
Vento acknowledges and agrees that he has not, with respect to any transaction or state of facts existing prior to the date hereof,
filed any complaints, charges or lawsuits against any Company Released Party with any governmental agency, court or tribunal.

 

(h)          Mr.
Vento acknowledges and agrees that he has been advised by the Company and the Bank to consult with independent legal counsel of
his choosing in connection with his review of this Agreement prior to executing this Agreement, that he has done so or had the
opportunity to do so, that he has read and had the terms of this Agreement explained to him, and that he has entered into this
Agreement voluntarily and with full knowledge of its significance, meaning and binding effect. Mr. Vento acknowledges and agrees
that neither the Company or the Bank nor its agents or representatives has made any promises, statements or representations, either
oral or written, to Mr. Vento or anyone else concerning the terms or effects of this Agreement other than those expressly contained
herein.

 

(h)          In
addition to any other remedy available to the Company or the Bank hereunder, in the event that, as a result of a challenge brought
by Mr. Vento, the release of claims set forth in Section 8 becomes null and void or is otherwise determined not to be enforceable,
then the obligation of the Bank to make any additional payments or to provide any additional benefits under this Agreement shall
immediately cease to be of any force and effect, and Mr. Vento shall promptly return to the Bank any payments or benefits the provision
of which by the Bank was conditioned on the enforceability of this Agreement.         

 

9.            Full
Settlement. The obligations of the Company and/or the Bank to perform its respective obligations hereunder shall not be affected
by any set-off, counterclaim, recoupment, defense or other claim, right or action which the Company and/or the Bank may have against
Mr. Vento or others. In no event shall Mr. Vento be obligated to seek other services or take any other action by way of mitigation
of the amounts payable to him under any of the provisions of this Agreement.

 

    	 	8	 

     

    

 

10.         Representations
and Warranties. Each party hereto represents and warrants to each other that they have carefully read this Agreement and consulted
with respect thereto, to the extent deemed appropriate, with their respective counsel and that each of them fully understands the
content of this Agreement and its legal effect. Each party hereto also represents and warrants that this Agreement is a legal,
valid and binding obligation of such party which is enforceable against it in accordance with its terms.

 

11.         Successors
and Assigns. This Agreement will inure to the benefit of and be binding upon Mr. Vento and his assigns and upon the Company
and the Bank any successor to the Company or the Bank and by merger or consolidation or any other change in form or any other person
or firm or corporation to which all or substantially all of the assets and business of the Company and the Bank may be sold or
otherwise transferred. Any successor to the Company or the Bank by merger, consolidation or other change in form shall expressly
in writing assume all obligations of the Company or the Bank hereunder as fully as if it had been originally made a party hereto,
and this Agreement shall continue in effect following any change in control of the Company and/or the Bank. This Agreement may
not be assigned by any party hereto without the written consent of the other parties hereto.

 

12.         Notices.
Any communication to a party required or permitted under this Agreement, including any notice, direction, designation, consent,
instruction, objection or waiver, shall be in writing and shall be deemed to have been given at such time as it is delivered personally,
or five days after mailing if mailed, postage prepaid, by registered or certified mail, return receipt requested, addressed to
such party at the address listed below or at such other address as one such party may by written notice specify to the other party
or parties, as applicable:

 

If to Mr. Vento:

 

Thomas A. Vento

At the address last appearing
on the

personnel records of the
Bank

 

If to the Company and the
Bank:

 

Prudential Bancorp, Inc.

Prudential Savings Bank

1834 West Oregon Avenue

Philadelphia, Pennsylvania
19145

Attention: Corporate Secretary

 

13.         Withholding.
The Company and/or the Bank may withhold from any amounts payable under this Agreement such federal, state, local or foreign taxes
as shall be required to be withheld pursuant to any applicable law or regulation.

 

    	 	9	 

     

    

 

14.          Entire
Agreement; Severability.

 

(a)          This
Agreement incorporates the entire understanding between the parties relating to the subject matter hereof, recites the sole consideration
for the promises exchanged and supersedes any prior agreements between the Company and/or the Bank and Mr. Vento with respect to
the subject matter hereof including the Transition Agreement except as otherwise specifically provided herein. In reaching this
Agreement, no party has relied upon any representation or promise except those set forth herein.

 

(b)          Any
term or provision of this Agreement which is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective
to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions
of this Agreement or affecting the validity or enforceability of any of the terms or provisions of this Agreement in any other
jurisdiction. If any provision of this Agreement is so broad as to be unenforceable, the provision shall be interpreted to be only
so broad as is enforceable. In all such cases, the parties shall use their reasonable best efforts to substitute a valid, legal
and enforceable provision which, insofar as practicable, implements the original purposes and intents of this Agreement.

 

15.         Amendment;
Waiver.

 

(a)          This
Agreement may not be amended, supplemented or modified except by an instrument in writing signed by each party hereto; provided,
however, that notwithstanding anything in this Agreement to the contrary, the Company and the Bank may amend in good faith any
terms of this Agreement, including retroactively, in order to comply with Section 409A of the Internal Revenue Code of 1986, as
amended.

 

(b)          Failure
to insist upon strict compliance with any of the terms, covenants or conditions hereof shall not be deemed a waiver of such term,
covenant or condition. A waiver of any provision of this Agreement must be made in writing, designated as a waiver and signed by
the party against whom its enforcement is sought. Any waiver or relinquishment of any right or power hereunder at any one or more
times shall not be deemed a waiver or relinquishment of such right or power at any other time or times.

 

16.         Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, and all of which shall constitute
one and the same Agreement.

 

17.         Governing
Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the Commonwealth of Pennsylvania
applicable to agreements made and entirely to be performed within such jurisdiction.

 

18.         Headings.
The headings of sections in this Agreement are for convenience of reference only and are not intended to qualify the meaning of
any section. Any reference to a section number shall refer to a section of this Agreement, unless otherwise stated.

    	 	10	 

     

    

 

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

 

[The next page is the signature page.]

 

    	 	11	 

     

    

 

IN WITNESS WHEREOF,
Mr. Vento has hereunto set his hand, and the Company and the Bank, have caused this Agreement to be executed by their duly authorized
officers, all as of the day and year first written above.

 

	ATTEST:	 	 
	 	 	 	 
	By:	/s/Regina Wilson	 	/s/Thomas A Vento
	Name:	Regina
    Wilson	 	Name:
    Thomas A. Vento
	Title:	Corporate
    Secretary	 	 

 

	 	PRUDENTIAL BANCORP, INC.
	 	 	 
	 	By:	/s/Francis V. Mulcahy
	 	Name:	Francis
    V. Mulcahy
	 	Title:	Chairman,
    Compensation Committee

 

	 	PRUDENTIAL SAVINGS BANK
	 	 	 
	 	By:	/s/Francis
    V. Mulcahy 
	 	Name:	Francis
    V. Mulcahy
	 	Title:	Chairman,
    Compensation Committee

 

    	 	12

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