Document:

Exhibit 10.2

 

TWO-YEAR CHANGE IN CONTROL AGREEMENT

 

This Change in Control
Agreement (the “Agreement”) is made effective as of the 17th day of July 2019 (the “Effective Date”),
by and between Pioneer Bank, a New York-chartered stock savings bank (the “Bank”) and Frank C. Sarratori (“Executive”).
Any reference to the “Company” shall mean Pioneer Bancorp, Inc., the newly-formed the stock holding company
of the Bank, or any successor thereto.

 

RECITALS

 

WHEREAS, Executive
is currently employed as an executive officer of the Bank;

 

WHEREAS, the
Bank desires to assure itself of the Executive’s continued active participation in the business of the Bank; and

 

WHEREAS, in
order to induce Executive to remain in the employ of the Bank and in consideration of Executive’s agreeing to remain in the
employ of the Bank, the parties desire to specify the severance benefits which shall be due Executive in the event that his employment
with the Bank is terminated under specified circumstances.

 

NOW THEREFORE,
in consideration of the mutual agreements herein contained, and upon the other terms and conditions hereinafter provided, the parties
hereby agree as follows:

 

1.           TERM
OF AGREEMENT.

 

(a)          Two
Year Contract; Annual Renewal. The term of this Agreement will begin as of the Effective Date and will continue through
December 31, 2020 (the “Term”). Commencing on January 1, 2020 and continuing on each January 1st
thereafter (the “Renewal Date”), the Term will extend automatically for one additional year, so that the Term
will be two (2) years from such Renewal Date, unless either the Bank or Executive by written notice to the other given at least
60 days prior to such Renewal Date notifies the other of its intent not to extend the same. In the event that notice not to extend
is given by either the Bank or the Executive, this Agreement will terminate as of the last day of the then current Term. For avoidance
of doubt, any extension to the Term will become the “Term” for purposes of this Agreement.

 

At least 30 days prior
to the Renewal Date, the disinterested members of the Board of Directors of the Bank (the “Board”) will conduct
a comprehensive performance evaluation and review of Executive for purposes of determining whether to take action regarding non-renewal
of the Agreement, and the results thereof will be included in the minutes of the Board’s meeting.

 

(b)          Change
in Control. Notwithstanding the foregoing, in the event the Bank or the Company has entered into an agreement to effect
a transaction that would be considered a Change in Control as defined under Section 2(b) hereof, the Term of this Agreement will
be extended automatically so that it is scheduled to expire no less than two (2) years beyond the effective date of the Change
in Control, subject to extensions as set forth above.

 

    	 	 	 

     

    

 

2.           DEFINITIONS.

 

(a)          Base
Salary. Executive’s “Base Salary” for purposes of this Agreement shall mean the annual rate of base
salary paid to Executive by the Bank.

 

(b)          Change
in Control. For purposes of this Agreement, the term “Change in Control” means: (i) a change in the ownership
of the Corporation; (ii) a change in the effective control of the Corporation; or (iii) a change in the ownership of a substantial
portion of the assets of the Corporation as defined in accordance with Code Section 409A. For purposes of this Section 2(b), the
term “Corporation” is defined to include the Bank, the Company or any of their successors, as applicable.

 

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

 

		(ii)	A change in the effective control of the Corporation occurs
on the date that either (A) any one person, or more than one person acting as a group (as defined in Treasury Regulation 1.409A-3(i)(5)(vi)(D))
acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons)
ownership of stock of the Corporation possessing 30 percent or more of the total voting power of the stock of the Corporation,
or (B) a majority of the members of the 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 election, provided that this
subsection “(B)” is inapplicable where a majority stockholder of the Corporation is another corporation.

 

		(iii)	A change in a substantial portion of the Corporation’s
assets occurs on the date that any one person or more than one person acting as a group (as defined in Treasury Regulation 1.409A-3(i)(5)(vii)(C))
acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons)
assets from the Corporation that have a total gross fair market value equal to or more than 40 percent of the total gross fair
market value of (A) all of the assets of the Corporation, or (B) the value of the assets being disposed of, either of which is
determined without regard to any liabilities associated with such assets. For all purposes hereunder, the definition of Change
in Control shall be construed to be consistent with the requirements of Treasury Regulation 1.409A-3(i)(5), except to the extent
that such regulations are superseded by subsequent guidance.

 

    	 	2	 

     

    

 

Notwithstanding anything
herein to the contrary, a Change in Control will not be deemed to have occurred for purposes of this Agreement in connection with
the Bank’s mutual holding company reorganization and/or minority stock offering of the Company. Similarly, a Change in Control
for purposes of this Agreement will not be deemed to have occurred in the event of a second-step conversion of the Bank’s
mutual holding company from mutual-to-stock form and/or contemporaneous stock offering of a newly-formed stock holding company.

 

(c)          Code.
 “Code” shall mean the Internal Revenue Code of 1986, as amended.

 

(d)          Good
Reason. “Good Reason” shall mean a termination by Executive following a Change in Control if, without Executive’s
express written consent, any of the following occurs:

 

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

 

		(ii)	a material reduction in Executive’s authority, duties
or responsibilities from the position and attributes associated with Executive’s executive position with the Bank in effect
as of the Effective Date or any successor executive position, as mutually agreed to by the Bank and Executive;

 

		(iii)	the Bank requiring Executive to be based at any office
or location resulting in an increase in Executive’s commute of 35 miles or more; or

 

		(iv)	a material breach of this Agreement by the Bank;

 

provided, however, that prior to any termination
of employment for Good Reason, Executive must first provide written notice to the Bank (or its successor) within 90) days following
the initial existence of the condition, describing the existence of such condition, and the Bank shall thereafter have the right
to remedy the condition within 30 days of the date the Bank received the written notice from Executive. If the Bank remedies the
condition within such 30 day cure period, then no Good Reason shall be deemed to exist with respect to such condition. If the Bank
does not remedy the condition within such 30-day cure period, then Executive may deliver a Notice of Termination for Good Reason
at any time within 60 days following the expiration of such cure period.

 

(e)          Termination
for Cause shall mean termination because of, in the good faith determination of the Board, Executive’s:

 

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

 

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

 

(iii)        breach
of fiduciary duty involving personal profit;

 

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

 

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

 

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

 

3.           BENEFITS
UPON TERMINATION.

 

Upon the termination
of Executive’s employment by the Bank (or any successor) without Cause or by Executive with Good Reason during the Term on
or after the effective time of a Change in Control, the Bank (or any successor) will pay or provide Executive, or Executive’s
estate in the event of Executive’s subsequent death, with the following:

 

(i)          a
cash lump sum payment equal to two (2) times the sum of Executive’s: (A) Base Salary (or Executive’s Base Salary in
effect immediately prior to the Change in Control, if higher); and (B) the highest annual cash bonus earned by Executive for the
three (3) most recently completed annual performance periods prior to the Change in Control, payable within 30 days following Executive’s
Date of Termination; and

 

(ii)         life
insurance coverage and non-taxable medical and dental insurance coverage substantially comparable to the coverage maintained by
the Bank for Executive immediately prior to the Date of Termination at no cost to Executive. Such continued coverage will cease
upon the earlier of: (A) the date which is 24 months following from Executive’s Date of Termination; or (B) the date on which
Executive becomes a full-time employee of another employer, provided Executive is entitled to benefits that are substantially similar
to the health and welfare benefits provided by the Bank. The period of continued health coverage required by Section 4980B(f) of
the Code shall not run concurrently with the coverage period provided herein.

 

4.           NOTICE
OF TERMINATION.

 

Any purported termination
by the Bank or by Executive in connection with or following a Change in Control shall be communicated by Notice of Termination
to the other party hereto. For purposes of this Agreement, a “Notice of Termination” shall mean a written notice
which shall indicate the Date of Termination and, in the event of termination by Executive, the specific termination provision
in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for
termination of Executive’s employment under the provision so indicated. “Date of Termination” shall mean
the date specified in the Notice of Termination (which, in the case of a termination for Cause, shall be immediate). In no event
shall the Date of Termination exceed 30 days from the date the Notice of Termination is given.

 

5.           SOURCE
OF PAYMENTS.

 

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

 

    	 	4	 

     

    

 

6.           NO
ATTACHMENT.

 

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

 

7.           ENTIRE
AGREEMENT; MODIFICATION AND WAIVER.

 

(a)          This
Agreement contains the entire understanding between the parties hereto and supersedes any prior employment agreement between the
Bank or any predecessor of the Bank and Executive, except that this Agreement shall not affect or operate to reduce any benefit
or compensation inuring to Executive under another plan, program or agreement (other than an employment agreement) between the
Bank and Executive.

 

(b)          This
Agreement may not be modified or amended except by an instrument in writing signed by the parties hereto.

 

(c)          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 or as to any act other
than that specifically waived.

 

8.           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.

 

9.           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.

 

10.         GOVERNING
LAW.

 

This Agreement shall
be governed by the laws of the State of New York but only to the extent not superseded by federal law.

 

11.         ARBITRATION.

 

Any
dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration, conducted
within 50 miles of Albany, New York, in accordance with the Commercial Rules of the American Arbitration Association then in effect. 
Judgment may be entered on the arbitrators’ award in any court having jurisdiction.  The above notwithstanding, the
Bank may seek injunctive relief in a court of competent jurisdiction in New York to restrain any breach or threatened breach of
any provision of this Agreement, without prejudice to any other rights or remedies that may otherwise be available to the Bank.

 

    	 	5	 

     

    

 

12.         PAYMENT
OF LEGAL FEES.

 

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

 

13.         OBLIGATIONS
OF BANK.

 

The termination of
Executive’s employment, other than following a Change in Control, shall not result in any obligation of the Bank under this
Agreement.

 

14.         SUCCESSORS
AND ASSIGNS.

 

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.

 

15.         CERTAIN
APPLICABLE LAW.

 

(a)          The
Bank may terminate Executive’s employment at any time, but any termination by the Bank other than termination for Cause shall
not prejudice Executive’s right to compensation or other benefits under this Agreement. Executive shall have no right to
receive compensation or other benefits under this Agreement for any period after Executive’s termination for Cause.

 

(b)          In
no event shall the Bank (nor any affiliate) be obligated to make any payment pursuant to this Agreement that is prohibited by Section
18(k) of the Federal Deposit Insurance Act (codified at 12 U.S.C. sec. 1828(k)), 12 C.F.R. Part 359, or any other applicable law.

 

(c)          Notwithstanding
anything in this Agreement to the contrary, to the extent that a payment or benefit described in this Agreement constitutes “non-qualified
deferred compensation” under Section 409A of the Code, and to the extent that such payment or benefit is payable upon the
Executive’s termination of employment, then such payments or benefits will be payable only upon the Executive’s “Separation
from Service.” For purposes of this Agreement, a “Separation from Service” will have occurred if the Bank
and Executive reasonably anticipate that either no further services will be performed by Executive after the Date of Termination
(whether as an employee or as an independent contractor) or the level of further services performed is less than 50 percent of
the average level of bona fide services in the 36 months immediately preceding the termination. For all purposes hereunder, the
definition of Separation from Service shall be interpreted consistent with Treasury Regulation Section 1.409A-1(h)(ii).

 

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

 

(e)          If
the Bank cannot provide Executive or Executive’s dependents any continued health insurance or other welfare benefits as required
by this Agreement because Executive is no longer an employee, applicable rules and regulations prohibit such benefits or the payment
of such benefits in the manner contemplated, or it would subject the Bank to penalties, then the Bank will pay Executive a cash
lump sum payment reasonably estimated to be equal to the value of such benefits or the value of the remaining benefits at the time
of such determination. Such cash payment will be made in a lump sum within 30 days after the later of Executive’s Date of
Termination or the effective date of the rules or regulations prohibiting such benefits or subjecting the Bank to penalties. Notwithstanding
the foregoing, if such cash payment would violate the requirements of Treasury Regulation Section 1.409A-3(j), the Executive’s
cash payment in lieu of the continued health insurance or welfare benefits as required by this Agreement will be payable at the
same time the related premium payments would have been paid by the Bank and for the duration of the applicable coverage period.

 

16.         TAX
WITHHOLDING.

 

The Bank may withhold
from any amounts payable to Executive hereunder all federal, state, local or other taxes that the Bank may reasonably determine
are required to be withheld pursuant to any applicable law or regulation (it being understood that Executive is responsible for
payment of all taxes in respect of the payments and benefits provided herein).

 

17.         NOTICE.

 

For the purposes of
this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to
have been duly given when delivered or mailed by certified or registered mail, return receipt requested, postage prepaid, addressed
to the respective addresses set forth below or if sent by facsimile or email, on the date it is actually received.

 

	To the Bank:	
        Pioneer Bank

        652 Albany-Shaker Road

        Albany, New York 12211

        Attention: Corporate Secretary

         

	To Executive:	Most recent address on file with the Bank

 

[Signature Page Follows]

 

    	 	7	 

     

    

 

SIGNATURES

 

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

 

	 	PIONEER BANK
	 	 
	 	By:	/s/ Thomas L. Amell
	 	Name: Thomas L. Amell
	 	Title:  President and Chief Executive Officer

 

	 	EXECUTIVE
	 	 
	 	/s/ Frank C. Sarratori
	 	Frank C. Sarratori

 

    	 	8Exhibit 10.3

 

TWO-YEAR CHANGE IN CONTROL AGREEMENT

 

This Change in Control
Agreement (the “Agreement”) is made effective as of the 17th day of July 2019 (the “Effective Date”),
by and between Pioneer Bank, a New York-chartered stock savings bank (the “Bank”) and Jesse Tomczak (“Executive”).
Any reference to the “Company” shall mean Pioneer Bancorp, Inc., the newly-formed the stock holding company
of the Bank, or any successor thereto.

 

RECITALS

 

WHEREAS, Executive
is currently employed as an executive officer of the Bank;

 

WHEREAS, the Bank
desires to assure itself of the Executive’s continued active participation in the business of the Bank; and

 

WHEREAS, in order
to induce Executive to remain in the employ of the Bank and in consideration of Executive’s agreeing to remain in the employ
of the Bank, the parties desire to specify the severance benefits which shall be due Executive in the event that his employment
with the Bank is terminated under specified circumstances.

 

NOW THEREFORE, in
consideration of the mutual agreements herein contained, and upon the other terms and conditions hereinafter provided, the parties
hereby agree as follows:

 

		1.	TERM OF AGREEMENT.

 

(a)          Two
Year Contract; Annual Renewal. The term of this Agreement will begin as of the Effective Date and will continue through
December 31, 2020 (the “Term”). Commencing on January 1, 2020 and continuing on each January 1st
thereafter (the “Renewal Date”), the Term will extend automatically for one additional year, so that the Term
will be two (2) years from such Renewal Date, unless either the Bank or Executive by written notice to the other given at least
60 days prior to such Renewal Date notifies the other of its intent not to extend the same. In the event that notice not to extend
is given by either the Bank or the Executive, this Agreement will terminate as of the last day of the then current Term. For avoidance
of doubt, any extension to the Term will become the “Term” for purposes of this Agreement.

 

At least 30 days prior
to the Renewal Date, the disinterested members of the Board of Directors of the Bank (the “Board”) will conduct
a comprehensive performance evaluation and review of Executive for purposes of determining whether to take action regarding non-renewal
of the Agreement, and the results thereof will be included in the minutes of the Board’s meeting.

 

(b)          Change
in Control. Notwithstanding the foregoing, in the event the Bank or the Company has entered into an agreement to effect
a transaction that would be considered a Change in Control as defined under Section 2(b) hereof, the Term of this Agreement will
be extended automatically so that it is scheduled to expire no less than two (2) years beyond the effective date of the Change
in Control, subject to extensions as set forth above.

 

     

     

    

  

		2.	DEFINITIONS.

 

(a)          Base
Salary. Executive’s “Base Salary” for purposes of this Agreement shall mean the annual rate of base
salary paid to Executive by the Bank.

 

(b)          Change
in Control. For purposes of this Agreement, the term “Change in Control” means: (i) a change in the ownership
of the Corporation; (ii) a change in the effective control of the Corporation; or (iii) a change in the ownership of a substantial
portion of the assets of the Corporation as defined in accordance with Code Section 409A. For purposes of this Section 2(b), the
term “Corporation” is defined to include the Bank, the Company or any of their successors, as applicable.

 

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

 

		(ii)	A change in the effective control of the Corporation
occurs on the date that either (A) any one person, or more than one person acting as a group (as defined in Treasury Regulation
1.409A-3(i)(5)(vi)(D)) acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition
by such person or persons) ownership of stock of the Corporation possessing 30 percent or more of the total voting power of the
stock of the Corporation, or (B) a majority of the members of the 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 election,
provided that this subsection “(B)” is inapplicable where a majority stockholder of the Corporation is another corporation.

 

		(iii)	A change in a substantial portion of the Corporation’s
assets occurs on the date that any one person or more than one person acting as a group (as defined in Treasury Regulation 1.409A-3(i)(5)(vii)(C))
acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons)
assets from the Corporation that have a total gross fair market value equal to or more than 40 percent of the total gross fair
market value of (A) all of the assets of the Corporation, or (B) the value of the assets being disposed of, either of which is
determined without regard to any liabilities associated with such assets. For all purposes hereunder, the definition of Change
in Control shall be construed to be consistent with the requirements of Treasury Regulation 1.409A-3(i)(5), except to the extent
that such regulations are superseded by subsequent guidance.

 

    	 	2	 

     

    

 

Notwithstanding anything
herein to the contrary, a Change in Control will not be deemed to have occurred for purposes of this Agreement in connection with
the Bank’s mutual holding company reorganization and/or minority stock offering of the Company. Similarly, a Change in Control
for purposes of this Agreement will not be deemed to have occurred in the event of a second-step conversion of the Bank’s
mutual holding company from mutual-to-stock form and/or contemporaneous stock offering of a newly-formed stock holding company.

 

(c)          Code.
 “Code” shall mean the Internal Revenue Code of 1986, as amended.

 

(d)          Good
Reason. “Good Reason” shall mean a termination by Executive following a Change in Control if, without Executive’s
express written consent, any of the following occurs:

 

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

 

		(ii)	a material reduction in Executive’s authority,
duties or responsibilities from the position and attributes associated with Executive’s executive position with the Bank
in effect as of the Effective Date or any successor executive position, as mutually agreed to by the Bank and Executive;

 

		(iii)	the Bank requiring Executive to be based at any office
or location resulting in an increase in Executive’s commute of 35 miles or more; or

 

		(iv)	a material breach of this Agreement by the Bank;

 

provided, however, that prior to any termination
of employment for Good Reason, Executive must first provide written notice to the Bank (or its successor) within 90) days following
the initial existence of the condition, describing the existence of such condition, and the Bank shall thereafter have the right
to remedy the condition within 30 days of the date the Bank received the written notice from Executive. If the Bank remedies the
condition within such 30 day cure period, then no Good Reason shall be deemed to exist with respect to such condition. If the Bank
does not remedy the condition within such 30-day cure period, then Executive may deliver a Notice of Termination for Good Reason
at any time within 60 days following the expiration of such cure period.

 

(e)          Termination
for Cause shall mean termination because of, in the good faith determination of the Board, Executive’s:

 

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

 

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

 

(iii)         breach
of fiduciary duty involving personal profit;

 

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

 

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

 

    	 	3	 

     

    

 

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

 

		3.	BENEFITS UPON TERMINATION.

 

Upon the termination of
Executive’s employment by the Bank (or any successor) without Cause or by Executive with Good Reason during the Term on or
after the effective time of a Change in Control, the Bank (or any successor) will pay or provide Executive, or Executive’s
estate in the event of Executive’s subsequent death, with the following:

 

(i)           a
cash lump sum payment equal to two (2) times the sum of Executive’s: (A) Base Salary (or Executive’s Base Salary in
effect immediately prior to the Change in Control, if higher); and (B) the highest annual cash bonus earned by Executive for the
three (3) most recently completed annual performance periods prior to the Change in Control, payable within 30 days following Executive’s
Date of Termination; and

 

(ii)          life
insurance coverage and non-taxable medical and dental insurance coverage substantially comparable to the coverage maintained by
the Bank for Executive immediately prior to the Date of Termination at no cost to Executive. Such continued coverage will cease
upon the earlier of: (A) the date which is 24 months following from Executive’s Date of Termination; or (B) the date on which
Executive becomes a full-time employee of another employer, provided Executive is entitled to benefits that are substantially similar
to the health and welfare benefits provided by the Bank. The period of continued health coverage required by Section 4980B(f) of
the Code shall not run concurrently with the coverage period provided herein.

 

		4.	NOTICE OF TERMINATION.

 

Any purported termination
by the Bank or by Executive in connection with or following a Change in Control shall be communicated by Notice of Termination
to the other party hereto. For purposes of this Agreement, a “Notice of Termination” shall mean a written notice
which shall indicate the Date of Termination and, in the event of termination by Executive, the specific termination provision
in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for
termination of Executive’s employment under the provision so indicated. “Date of Termination” shall mean
the date specified in the Notice of Termination (which, in the case of a termination for Cause, shall be immediate). In no event
shall the Date of Termination exceed 30 days from the date the Notice of Termination is given.

 

		5.	SOURCE OF PAYMENTS.

 

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

 

    	 	4	 

     

    

 

		6.	NO ATTACHMENT.

 

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

 

		7.	ENTIRE AGREEMENT; MODIFICATION AND WAIVER.

 

(a)          This
Agreement contains the entire understanding between the parties hereto and supersedes any prior employment agreement between the
Bank or any predecessor of the Bank and Executive, except that this Agreement shall not affect or operate to reduce any benefit
or compensation inuring to Executive under another plan, program or agreement (other than an employment agreement) between the
Bank and Executive.

 

(b)          This
Agreement may not be modified or amended except by an instrument in writing signed by the parties hereto.

 

(c)          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 or as to any act other
than that specifically waived.

 

		8.	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.

 

		9.	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.

 

		10.	GOVERNING LAW.

 

This Agreement shall be
governed by the laws of the State of New York but only to the extent not superseded by federal law.

 

		11.	ARBITRATION.

 

Any
dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration, conducted
within 50 miles of Albany, New York, in accordance with the Commercial Rules of the American Arbitration Association then in effect. 
Judgment may be entered on the arbitrators’ award in any court having jurisdiction.  The above notwithstanding, the
Bank may seek injunctive relief in a court of competent jurisdiction in New York to restrain any breach or threatened breach of
any provision of this Agreement, without prejudice to any other rights or remedies that may otherwise be available to the Bank.

 

    	 	5	 

     

    

 

		12.	PAYMENT OF LEGAL FEES.

 

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

 

		13.	OBLIGATIONS OF BANK.

 

The termination of Executive’s
employment, other than following a Change in Control, shall not result in any obligation of the Bank under this Agreement.

 

		14.	SUCCESSORS AND ASSIGNS.

 

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.

 

		15.	CERTAIN APPLICABLE LAW.

 

(a)          The
Bank may terminate Executive’s employment at any time, but any termination by the Bank other than termination for Cause shall
not prejudice Executive’s right to compensation or other benefits under this Agreement. Executive shall have no right to
receive compensation or other benefits under this Agreement for any period after Executive’s termination for Cause.

 

(b)          In
no event shall the Bank (nor any affiliate) be obligated to make any payment pursuant to this Agreement that is prohibited by Section
18(k) of the Federal Deposit Insurance Act (codified at 12 U.S.C. sec. 1828(k)), 12 C.F.R. Part 359, or any other applicable law.

 

(c)          Notwithstanding
anything in this Agreement to the contrary, to the extent that a payment or benefit described in this Agreement constitutes “non-qualified
deferred compensation” under Section 409A of the Code, and to the extent that such payment or benefit is payable upon the
Executive’s termination of employment, then such payments or benefits will be payable only upon the Executive’s “Separation
from Service.” For purposes of this Agreement, a “Separation from Service” will have occurred if the Bank
and Executive reasonably anticipate that either no further services will be performed by Executive after the Date of Termination
(whether as an employee or as an independent contractor) or the level of further services performed is less than 50 percent of
the average level of bona fide services in the 36 months immediately preceding the termination. For all purposes hereunder, the
definition of Separation from Service shall be interpreted consistent with Treasury Regulation Section 1.409A-1(h)(ii).

 

    	 	6	 

     

    

 

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

 

(e)          If
the Bank cannot provide Executive or Executive’s dependents any continued health insurance or other welfare benefits as required
by this Agreement because Executive is no longer an employee, applicable rules and regulations prohibit such benefits or the payment
of such benefits in the manner contemplated, or it would subject the Bank to penalties, then the Bank will pay Executive a cash
lump sum payment reasonably estimated to be equal to the value of such benefits or the value of the remaining benefits at the time
of such determination. Such cash payment will be made in a lump sum within 30 days after the later of Executive’s Date of
Termination or the effective date of the rules or regulations prohibiting such benefits or subjecting the Bank to penalties. Notwithstanding
the foregoing, if such cash payment would violate the requirements of Treasury Regulation Section 1.409A-3(j), the Executive’s
cash payment in lieu of the continued health insurance or welfare benefits as required by this Agreement will be payable at the
same time the related premium payments would have been paid by the Bank and for the duration of the applicable coverage period.

 

		16.	TAX WITHHOLDING.

 

The Bank may withhold from
any amounts payable to Executive hereunder all federal, state, local or other taxes that the Bank may reasonably determine are
required to be withheld pursuant to any applicable law or regulation (it being understood that Executive is responsible for payment
of all taxes in respect of the payments and benefits provided herein).

 

		17.	NOTICE.

 

For the purposes of this
Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have
been duly given when delivered or mailed by certified or registered mail, return receipt requested, postage prepaid, addressed
to the respective addresses set forth below or if sent by facsimile or email, on the date it is actually received.

 

	To the Bank:	
        Pioneer Bank

        652 Albany-Shaker Road

        Albany, New York 12211

        Attention: Corporate Secretary

	 	 
	To Executive:	Most recent address on file with the Bank

 

[Signature Page Follows]

 

    	 	7	 

     

    

 

SIGNATURES

 

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

 

	 	PIONEER BANK
	 	 
	 	By:	/s/ Thomas L. Amell
	 	Name: Thomas L. Amell
	 	Title:  President and Chief Executive Officer
	 	 
	 	EXECUTIVE
	 	 
	 	/s/ Jesse Tomczak
	 	Jesse Tomczak

 

    	 	8

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