Document:

Offer Letter dated March 27, 2008

 Exhibit 10.1 
 SYNNEX Corporation 
 March 27, 2008 
 Mr. Kevin Murai 
 [Address] 
 [City, State, Zip] 
 Dear Kevin: 
 SYNNEX Corporation (the “Company”) is pleased to offer you employment on the following terms: 
 1. Position.
Commencing March 31, 2008, or such earlier date as is mutually agreed between the parties (the “Employment Date”) you will be employed as Co-Chief Executive Officer, together with Robert Huang, reporting to the Board of
Directors. At such time as Mr. Huang is no longer Co-Chief Executive Officer, which is expected to occur on or before November 30, 2008, then subject to Board approval at that time, you will become the sole Chief Executive Officer.

 You will be employed at the Company’s headquarters in Fremont, California. By signing this letter, you confirm to the Company that
you have no contractual commitments or other legal obligations that would prohibit you from performing your duties for the Company. While you render services to the Company, you agree that you will not engage in any other employment, consulting or
other business activity without the prior written consent of the Company. 
 Employment with the Company is for no specific period of time.
Your employment with the Company will be “at will,” meaning that either you or the Company may terminate your employment at any time and for any reason, with or without cause. 
 2. Board Membership. You will be elected to serve as a member of the Board of Directors of the Company, concurrent with the Employment Date. All
directors are subject to election and removal by the shareholders of the Company in accordance with its by-laws and Delaware law. Upon the Company’s written request, you agree to promptly resign as a member of the Board following any
termination of your employment with the Company. 
 3. Cash Compensation. The Company will pay you a starting base salary at the rate
of U.S. $400,000 per year (U.S. $33,333.33 per month). In addition, you will be eligible to be considered for an incentive bonus for each fiscal year of the Company, including the initial fiscal year of your employment with the Company. Bonuses will
be determined by the Company’s Compensation Committee (the “Compensation Committee”), in its sole discretion. Your target bonus for the fiscal year ending November 30, 2008 will be $950,000 on an annualized basis (and will
be pro-rated for the portion of the fiscal year that you are employed); provided, however, that you will earn a bonus for the fiscal year ending November 30, 2008, in an amount no less than $600,000 on an annualized basis (pro-rated for the
portion of the fiscal year that you are employed), provided you remain employed through November 30, 2008. The bonus for a fiscal year will be paid within 2-1/2 months after the last day of the fiscal year. The determinations of the
Compensation Committee with respect to your bonus will be final 

 
and binding. Following fiscal year 2008, your base salary and bonus will be determined by the Compensation Committee in its sole discretion. Your base salary
will next be reviewed as of the earlier of (i) such date as you become the sole Chief Executive Officer of the Company and (ii) May 1, 2009. Any increase in base salary approved pursuant to such review, if it is completed after such
date, shall be made effective retroactive to such date. In determining total compensation, the Company has stressed a compensation philosophy that is performance-driven with a high degree of variability achieved through the Company’s profit
sharing program. Bonuses granted to executive officers under this profit sharing program are determined by the Compensation Committee, based upon both qualitative and quantitative considerations, and in past years has been based upon the achievement
of certain threshold net income per share target performance percentages. 
 4. Employee Benefits; Relocation Assistance. As a regular
employee of the Company, you will also be eligible to receive all employee benefits consistent with that provided to other senior executive officers; provided, however, that the Company will subsidize the cost of an appropriate health insurance
indemnity policy for you that will cover your dependents in Canada such that your share of the cost will be no more than that charged to other senior executive officers for family indemnity coverage. You should note that the Company reserves the
right to modify compensation and benefits from time to time, as it deems necessary. The Company will reimburse you for ordinary and necessary business expenses you incur in connection with the performance of your duties on behalf of the Company in
accordance with the Company’s normal procedures, as they may be amended from time to time. The Company will also reimburse you for reasonable relocation expenses of up to $40,000. Relocation expenses eligible for reimbursement (subject to the
foregoing aggregate limitation of $40,000) include, without limitation, temporary living expenses, expenses for house-hunting trips, expenses of moving household goods and cars and travel to new location, temporary storage, and normal closing costs
for new home purchase plus a buydown of up to 2 points on a mortgage not to exceed $600,000. Reimbursement will be made as soon as administratively practicable but in any event no later than the year following the year in which the expense was
incurred. 
 5. Equity Compensation. You will be granted an option to purchase 150,000 shares of the Company’s Common Stock
(“Stock Option”) pursuant to the Company’s 2003 Stock Incentive Plan, as amended and restated (the “Plan”). The date of grant will be the Employment Date; provided, however, that if the Company’s trading
window is not open on that date, the date of grant will be upon the expiration of three trading days after the Company’s trading window is open, in accordance with the Company’s equity grant making policy. The exercise price per share of
the Stock Option will be equal to the closing price per share of the Company’s Common Stock on the date of grant. The Stock Option will be subject to the terms and conditions applicable to options granted under Plan and the applicable stock
option agreement. The Stock Option will be subject to vesting over the five year period following the date of grant, with 20% of the option shares vesting on the one year anniversary of the Employment Date, and monthly vesting over the next
succeeding 48 months, conditioned on your continuous common law employment, as described in the applicable stock option agreement. 
 You will also be granted a restricted stock award for 50,000 shares of the Company’s Common Stock (“Restricted Stock”) pursuant to the Plan. The date of grant will be the 

  

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Employment Date; provided, however, that if the Company’s trading window is not open on that date, the date of grant will be upon the expiration of
three trading days after the Company’s trading window is open, in accordance with the Company’s equity grant making policy. The Restricted Stock will be subject to the terms and conditions applicable to restricted stock awards granted
under Plan and the applicable restricted stock award agreement. The Restricted Stock will be subject to vesting over the five year period following the Employment Date, with 20% of the shares vesting on each one year anniversary of the date of
grant, conditioned on your continuous common law employment, as described in the applicable restricted stock award agreement. 
 You will be
eligible to receive additional equity compensation awards as determined by the Compensation Committee in its sole discretion from time to time. 
 6. Stock Ownership Guidelines. You will be expected not to sell your vested equity compensation from the Company (with the exception of shares sold or withheld by the Company to cover your exercise price or taxes on such
compensation) until you achieve ownership of an amount of the Company’s Common Stock having a fair market value of at least two times the sum of your annual base salary plus target bonus as in effect from time to time. You will be expected to
maintain this minimum level of ownership thereafter. Stock ownership for this purpose includes common stock owned personally or in trust for your benefit, and does not include unvested restricted stock or stock units, or unexercised stock options.

 7. Severance Pay. If the Company terminates your employment with the Company after the Employment Date for a reason other than
Cause, Disability or death, as such terms are defined below (“Involuntary Termination”), then subject to Section 8, you will receive the following severance benefits from the Company: 
 (a) Severance Payments. You will be paid severance for twelve (12) months following the employment termination date at a monthly rate equal
to your annual base salary rate plus target incentive bonus, as then in effect, divided by twelve (12) months. Such payments shall be paid periodically in accordance with the Company’s normal payroll policies. 
 (b) Continued Health Benefits. You will receive reimbursement from the Company of the group health continuation coverage premiums for you and your
eligible dependents under Section 4980B of the Internal Revenue Code of 1986, as amended (the “Code”) or corresponding provisions of state law (“COBRA”) through the earliest of (x) the twelve-month
anniversary of the date of termination of employment, (y) the date upon which you and your eligible dependents become covered under similar plans or (z) the date you no longer qualify as a “Qualified Beneficiary” (as such term is
defined in Section 4980B(g) of the Code); provided, however, that you are solely responsible for timely electing COBRA coverage. 
 8.
Conditions to Receipt of Severance. 
 (a) Release of Claims. The receipt of any severance benefits pursuant to Section 7
will be subject to your signing and not revoking a release of claims in a form acceptable to the Company within such period of time as the Company may require, but not to exceed 21 days following your termination of employment. 
  

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 (b) Noncompetition; Nonsolicitation. The receipt of any severance benefits pursuant to
Section 7 will be subject to your not violating the provisions of Section 11. In the event you breach the provisions of Section 11, or if you elect not to comply with the terms of Section 11(a) on noncompetition or
Section 11(b)(ii) on nonsolicitation of business, all continuing payments and benefits to which you would have been entitled pursuant to Section 7 will immediately cease. 
 (c) Section 409A. Any cash severance to be paid pursuant to Section 7 will not be paid during the six-month period following your
termination of employment if the Company determines that you are a “specified employee” within the meaning of Section 409A of the Code and that such amounts are not exempt from Section 409A. In such event, the Company will pay
you a lump-sum amount equal to the cumulative amounts that would have otherwise been paid to you during such six-month period on the first day following such six-month period (or, if earlier, your death). Thereafter, you will receive your cash
severance payments pursuant to Section 7 in accordance with the Company’s normal payroll practices. The provisions of this agreement which require commencement of payments or benefits subject to Section 409A upon a termination of
employment shall be interpreted to require that you have a “separation from service” with the Company (as defined for purposes of Section 409A). Any series of severance payments or benefits provided under this agreement shall for all
purposes of Section 409A be treated as a series of separate payments and not as a single payment. 
 9. Proprietary Information and
Inventions Agreement. As a Company employee, you will be expected to abide by the Company’s rules and regulations. You will be expected to sign and comply with a Proprietary Information and Inventions Agreement (the “Employee
NDA”), a copy of which is attached hereto as Appendix A. 
 10. Definition of Terms. The following terms referred
to in this agreement will have the following meanings: 
 (a) Cause. “Cause” means (i) commission of a felony, an act
involving moral turpitude, or an act constituting common law fraud, and which has a material adverse effect on the business or affairs of the Company or its affiliates or stockholders, (ii) intentional or willful misconduct or refusal to follow
the lawful instructions of the Board or (iii) intentional breach of Company confidential information obligations which has an adverse effect on the Company or its affiliates or stockholders. For these purposes, no act or failure to act shall be
considered “intentional or willful” unless it is done, or omitted to be done, in bad faith without a reasonable belief that the action or omission is in the best interests of the Company. 
 (b) Disability. “Disability” means that you have been unable to perform the principal functions of his duties due to a physical or
mental impairment, but only if such inability has lasted or is reasonably expected to last for at least six (6) months. Whether you have a Disability will be determined by the Board based on evidence provided by one or more physicians selected
by the Board. 
 11. Restrictive Covenants. 
  

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 (a) Noncompete. For a period beginning on the Employment Date and ending on the date you cease to
provide services to the Company or any parent or subsidiary of the Company (excluding services provided pursuant to Section 12 following your termination of employment) or, if later, the date through which severance is payable pursuant to
Section 7, you agree to not, directly or indirectly, engage in (whether as an employee, consultant, agent, proprietor, principal, partner, stockholder, corporate officer, director or otherwise), nor have any ownership interest in or participate
in the financing, operation, management or control of, any person, firm, corporation or business that competes with Company (or any parent or subsidiary of the Company); provided, however, that you shall not be prohibited from owning, solely as an
investment, up to 1% of the stock of a publicly traded corporation or up to 5% of the equity of a non-publicly traded company. You may elect not to comply with the provisions of this Section 11(a) following your termination of employment.
However, all continuing payments and benefits to which you would have been entitled pursuant to Section 7 will immediately cease. 
 (b)
Nonsolicit. 
 (i) For a period beginning on the Employment Date and ending on the date twelve (12) months after you cease to
provide services to the Company or any parent or subsidiary of the Company (excluding services provided pursuant to Section 12 following your termination of employment), you, directly or indirectly, whether as employee, owner, sole proprietor,
partner, director, member, consultant, agent, founder, co-venturer or otherwise, will not solicit, induce or influence any person to leave employment with the Company (or any parent or subsidiary of the Company). 
 (ii) For a period beginning on the Employment Date and ending the date you cease to provide services to the Company or any parent or subsidiary of
the Company (excluding services provided pursuant to Section 12 following your termination of employment) or, if later, the date through which severance is payable pursuant to Section 7, you, directly or indirectly, whether as employee,
owner, sole proprietor, partner, director, member, consultant, agent, founder, co-venturer or otherwise, will not directly or indirectly solicit business from any of the Company’s customers and users on behalf of any business that directly
competes with the principal business of the Company (or any parent or subsidiary of the Company). You may elect not to comply with the provisions of this Section 11(b)(ii) following your termination of employment. However, all continuing
payments and benefits to which you would have been entitled pursuant to Section 7 will immediately cease. 
 (c) Understanding of
Covenants. You represent that you (i) are familiar with the foregoing covenants not to compete and not to solicit, and (ii) are fully aware of your obligations hereunder, including, without limitation, the reasonableness of the length
of time, scope and geographic coverage of these covenants. 
 12. Litigation. You agree to cooperate with the Company beginning on the
Employment Date and thereafter (including following your termination of employment for any reason) by making yourself reasonably available to testify on behalf of the Company or any of its affiliates in any action, suit, or proceeding, whether
civil, criminal, administrative, or investigative, and to assist the Company, or any affiliate, in any such action, suit, or proceeding, by providing information and meeting and consulting with the Board or its representatives or 

  

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counsel, or representatives or counsel to the Company, or any affiliate as reasonably requested. The Company agrees to reimburse you for all expenses
actually incurred in connection with your provision of testimony or assistance, and if you provide testimony or assistance after the one year anniversary of your termination as an employee and Board member (or during the first year after your
termination as an employee and Board member if no severance is being paid with respect to such time), $200 per hour for your time. 
 13.
Successors. For all purposes under this agreement, the term “Company” will include any successor to the Company’s business and/or assets which expressly assumes this agreement or which becomes bound by the terms of this
agreement by operation of law. The terms of this agreement and all of your rights hereunder will inure to the benefit of, and be enforceable by, your personal or legal representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees. 
 14. Arbitration. Any controversy involving the construction or application of any terms, covenants or
conditions of this agreement, or any claims arising out of any alleged breach of this agreement, will be governed by the rules of the American Arbitration Association and submitted to and settled by final and binding arbitration in Santa Clara
County, California, except that any alleged breach of the Company’s Confidentiality and Assignment of Inventions Agreement shall not be submitted to arbitration and instead the Company may seek all legal and equitable remedies, including
without limitation, injunctive relief. 
 15. Miscellaneous Provisions. 
 (a) Waiver. No provision of this agreement will be modified, waived or discharged unless the modification, waiver or discharge is agreed to in
writing and signed by you and by an authorized officer of the Company (other than you). No waiver by either party of any breach of, or of compliance with, any condition or provision of this agreement by the other party will be considered a waiver of
any other condition or provision or of the same condition or provision at another time. 
 (b) Entire Agreement. This agreement,
together with your Employee NDA, constitutes the entire agreement of the parties hereto and supersedes in their entirety all prior representations, understandings, undertakings or agreements (whether oral or written and whether expressed or implied)
of the parties with respect to the subject matter hereof. In the event of any inconsistency between this agreement and the Employee NDA, this agreement will control. This agreement may only be modified by a signed writing between the parties.

 (c) Choice of Law. The laws of the State of California (without reference to its choice of laws provisions) will govern the
validity, interpretation, construction and performance of this agreement. 
 (d) Severability. The invalidity or unenforceability of
any provision or provisions of this agreement will not affect the validity or enforceability of any other provision hereof, which will remain in full force and effect. 
 (e) Withholding. All payments made pursuant to this agreement will be subject to withholding of applicable income and employment taxes. 
  

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 * * * * * 
 We hope that you will accept our offer to join the Company. You may indicate your agreement with these terms and accept this offer by signing and dating both the enclosed duplicate original of this agreement and the
enclosed Employee NDA and returning them to me. This offer, if not accepted, will expire at the close of business on March 28, 2008, and is contingent on your starting work with the Company on or before March 31, 2008. 
 Prior to the Employment Date, either party may terminate this agreement for any reason without thereby incurring any liability to the other. Without
limiting the generality of the foregoing, the Company will have no severance obligations under Section 7 in the event that it terminates this agreement prior to the Employment Date. 
 As required by law, your employment with the Company is contingent upon your providing legal proof of your identity and authorization to work in the
United States. Our offer is also contingent upon satisfactory completion of a background investigation relating to your ability to perform satisfactorily the duties of your position. You agree to release the Company, its employees, agents, and any
individuals who may provide the Company with information regarding your background, from any liability in connection with providing such information. 
  

			
	 Very truly yours,
  
 SYNNEX Corporation

		
	By:	 	/Robert T. Huang/
		 	 Member of Board of Directors
 March 27,
2008

 I have read and accept this employment offer: 
  

	
	
	/Kevin Murai/
	Signature of Kevin Murai

 Dated: March 27/08 
 Attachments 
 Appendix A: Proprietary Information and Inventions Agreement 
  

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 Appendix A 
 PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT 
 The following Agreement confirms certain terms of
my employment with SYNNEX Corporation, (hereafter referred to as “SYNNEX” or “the Company”), which is a material part of the consideration for my employment by the Company and the compensation received by me from the Company from
time to time. The headings contained in this Agreement are for convenience only, have no legal significance, and are not intended to change or limit this Agreement in any matter whatsoever. 
 A. Definitions 
 1. The “Company”

 As issued in this Agreement, the “Company” refers to SYNNEX and each of its subsidiaries or affiliated companies. I recognize and
agree that my obligations under this Agreement and all term of this Agreement apply to me regardless of whether I am employed by or work for SYNNEX or any other subsidiary or affiliated company of SYNNEX. Furthermore, I understand and agree that the
terms of this Agreement will continue to apply to me even if I transfer at some time from one subsidiary or affiliate of the Company to another. 
 2. “Proprietary Information” 
 I understand that the Company possesses and will possess Proprietary Information
which is important to its business. For purposes of this Agreement, “Proprietary Information” is information that was or will be developed, created, or discovered by or on behalf of the Company, or which became or will become known by, or
was or is conveyed to the Company, which has commercial value in the Company’s business. 
 “Proprietary Information”
includes, but is not limited to information about software programs and subroutines, source and object code, algorithms, trade secrets, designs, technology, know-how, processes, data, ideas, techniques, inventions (whether patentable or not), works
or authorship, formulas, business and product development plans, customer lists, terms of compensation and performance levels of Company employees, Company customers and other information concerning the Company’s actual or anticipated business,
research or development, or which is received in confidence by or for the Company from any other person. Notwithstanding the foregoing, Proprietary Information shall not include information that (i) is or becomes generally known to the public
not as a result of a disclosure by me, or (ii) is received by me in good faith and without restriction from a third party, not under a confidentiality obligation to the Company and having the right to make such disclosure. 
 I understand that my employment creates a relationship of confidence and trust between the Company and me with respect to Proprietary Information.

 3. “Company Documents and Materials” 
 I understand that the Company possesses or will posses “Company Documents and Materials” which are important to its business. For purposes of this Agreement, “Company Documents and Materials” are
documents or other media or tangible items that contain or embody Proprietary Information of any other information concerning the business, operations or plan of the Company, whether such documents, media or items have been prepared by me or by
others. 
 “Company Documents and Material” include, but are not limited to, blueprints, drawing, photographs, charts, graphs,
notebook, customer lists, computer disks, tapes or printouts, sound recordings and other printed, typewritten or handwritten documents, sample products, prototypes and models. 
  

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 B. Assignment of Rights 
 All Proprietary Information, and all patents, patent rights, copyrights, trade secret rights, trademark rights and other rights (including, without limitation; intellectual property rights) anywhere in the world in
connection with Proprietary Information, is and shall be the sole property of the Company. I hereby assign to the Company any and all rights, title and interest I may have or acquire in such Proprietary Information. 
 At all times, both during my employment by the Company and after its termination, I will keep in confidence and trust and will not use or disclose any
Proprietary Information without the prior written consent of an officer of the Company (other than me), except as may be necessary in the ordinary course of performing my duties to the Company. 
 C. Maintenance and Return of Company Documents and Materials 
 I agree to make and maintain adequate and current written records, in a form specified by the Company, of all inventions, trade secrets and works of authorship assigned or to be assigned to the Company pursuant to this Agreement. All
Company Documents and Material are and shall be the sole property of the Company. 
 I agree that during my employment by the Company, I will
not remove any Company Documents and Material from the business premises of the Company or deliver any Company Document and Materials to any person or entity outside the Company, except as I am required to do in connection with performing the duties
of my employment. I further agree that, immediately upon the termination of my employment by me or by the Company for any reason, or during my employment if so requested by the Company, I will return all Company Documents and Material, apparatus,
equipment and other physical property, or any reproduction of such property, excepting only (i) my personal copies of records relating to my compensation; (ii) my personal copies of any material previously distributed generally to
stockholders of the Company; and (iii) my copy of this Agreement or any other agreement between the Company and me relating to my employment. 
 D.
Disclosure of Inventions to the Company 
 I will promptly disclose in writing to my immediate supervisor or to such other person
designated by the Company all “Inventions,” which means all software programs or subroutines, source or object code, algorithms, improvements, inventions, works of authorship, trade secrets, technology, designs, formulas, ideas, processes,
techniques, improvements, discoveries, works of authorship, know-how and data, whether or not patentable or copyrightable, made or discovered or conceived or reduced to practice or developed by me in whole or in part, either alone or jointly with
others, during the term of my employment, except as excluded by Section 2870 of the California Labor Code cited below. 
 I will also
disclose to the then-President of the Company all Inventions made, discovered, conceived, reduced to practice, or developed by me within six (6) months after the termination of my employment with the Company which resulted, in whole or in part,
from my prior employment by the Company. Such disclosures shall be received by the Company in confidence (to the extent such Inventions are not assigned to the Company pursuant to Section (E) below) and do not extend the assignment made in
Section (E) below. 
 E. Rights to New Ideas 
  

	 	1.	Assignment of Inventions to the Company 

 I agree to, and
hereby do, assign all Inventions to Company, and agree that all Inventions shall be the sole property of the Company, to the maximum extent permitted by Section 2870 of the California Labor Code or any like statute of any other state.
Section 2870 provides as follows: 
  

	 	a.	 Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her
employer shall not apply to an 

  

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invention that the employee developed entirely on his or her own time without using the employer’s equipment, supplies, facilities, or trade secret
information except for those inventions that either: 
 (1) Relate at the time of conception or reduction to practice of the
invention to the employer’s business, or actual or demonstrably anticipated research or development of the employer. 
 (2) Result from any work performed by the employee for his employer. 
  

	 	b.	To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to be assigned under subdivision
(a), the provision is against the public policy of this state and is unenforceable. 

 The assignment shall not extend to any
Invention, the assignment of which is prohibited by Labor Code Section 2870. 
 2. Works Made for Hire 
 The Company shall be the sole owner of all patents, patent rights, copyrights, trade secret rights, trademark rights and all other intellectual property
or other rights in connection with Inventions assigned hereunder. I further acknowledge and agree that such Inventions, including, without limitation, any computer programs, programming documentation, and other works of authorship, are “works
made for hire” for purposes of the Company’s rights under copyright laws. I hereby assign to the Company any and all rights, title and interest I may have or acquire in such Inventions. If in the course of my employment with the Company, I
incorporate into a Company product, process or machine a prior Invention owned by me or in which I have interest, the Company is hereby granted and shall have a nonexclusive, royalty-free, irrevocable, perpetual, sublicensable, worldwide license to
make, have made, modify, use, market, sell, and distribute such prior Invention as part of or in connection with such product, process or machine. 
 3. Cooperation 
 I agree to perform, during and after my employment, all acts deemed necessary or desirable by the Company to
permit and assist it, at the Company’s expense, in further evidencing and perfecting the assignments made to the Company under this Agreement and in obtaining, maintaining, defending and enforcing patents, patent rights, copyrights, trademark
rights, trade secret rights or any other rights in connection with such Inventions and improvements thereto in any and all countries. Such acts may include, but are not limited to, execution of documents and assistance of cooperation in legal and
proceedings. I hereby irrevocably designate and appoint the Company and its duly authorized officers and agents, as my agents and attorney-in-fact to act for and on my behalf and instead of me, to execute and file any documents, applications or
related finding and to do all other lawfully permitted acts to further the purposes set forth above in the Subsection 3, including, without limitation, the perfection of assignment and the prosecution and issuance of patents, patent applications,
copyright applications and registrations, trademark applications and registrations or other rights in connection with such Inventions and improvements thereto with the same legal force and effect as if executed by me. 
 4. Assignment or Waiver of Moral Rights 
 Any assignment of copyright hereunder (and any ownership of a copyright as a work made for hire) include all rights of paternity, integrity, disclosure and withdrawal and any other rights that may be known as or referred to as “moral
rights” (collectively “Moral Rights”). To the extent such Moral Rights cannot be assigned under applicable law and to the extent the following is allowed by the laws in the various countries where Moral Rights exist, I hereby waive
such Moral Rights and consent to any action of the Company that would violate such Moral Rights in the absence of such consent. 
 5. List
of Inventions 
  

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 I have attached hereto as Exhibit A a complete list of all inventions or improvements to which I
claim ownership and that I desire to remove from the operation of this Agreement, and I acknowledge and agree that such list is complete as of the date hereof. If no such list is attached to this Agreement, I represent that I have no such inventions
or improvements at the time of signing this Agreement. If I incorporate any invention covered by Exhibit A or otherwise not required to be assigned by me to Company pursuant to Section (E)(1) above (an “Excluded Invention”) into any
Company product or service or otherwise use an Excluded Invention for Company’s benefit as part of my Company employment activities, Company is hereby granted and shall have a fully paid, nonexclusive, royalty-free, irrevocable, perpetual,
worldwide, transferable and sublicensable license to make, have made, modify, create derivative works, reproduce, use, offer to sell, sell, import and distribute such Excluded Invention (as may be improved or enhanced by or for Company) and any
Company product or Company service incorporating such Excluded Invention. 
 F. Non-Solicitation of Company Employees 
 During the term of my employment and for one (1) year thereafter, I will not encourage or solicit any employee of the Company to leave the Company
for any reason or to accept employment with any other company. As part of this restriction, I will not interview or provide any input to any third party regarding any such person during the period in question. However, this obligation shall not
affect any responsibility I may have as an employee of the Company with respect to the bona fide hiring and firing of Company personnel. 
 G. Company
Authorization for Publication 
 Prior to submitting or disclosing for possible publication or dissemination outside the Company any
material prepared by me that incorporates information that concerns the Company’s business (except as I am required to do in connection with performing the duties of my employment in the ordinary course of business), I agree to deliver a copy
of such material to an officer of the Company (other than me) for his or her review. Within twenty (20) days following such submission, the Company agrees to notify me in writing whether the Company believes such material contains any
Proprietary Information or Inventions, and I agree to make such deletions and revisions as are reasonably requested by the Company to protect its Proprietary Information and Inventions. I further agree to obtain the written consent of the Company
prior to any review of such material by persons outside the Company. 
 H. Duty of Loyalty 
 I agree that, during my employment with the Company, I will not provide consulting services to or become an employee of, any other firm or person engaged
in a business in any way competitive with the Company, without first informing the Company of the existence of such proposed relationship and obtaining the prior written consent of my manager and the Human Resource Manager responsible for the
organization in which I work. 
 I. Former Employer Information 
 I represent that my performance of all the terms of this Agreement and as an employee of the Company does not and will not breach any agreement to keep in confidence proprietary information, knowledge or data acquired
by me in confidence or in trust prior to my employment by the Company, and I will not disclose to the Company or induce the Company to use any confidential or proprietary information or material belonging to any previous employer or others. I have
not entered into and I agree I will not enter into any agreement, either written or oral, in conflict herewith or in conflict with my employment with the Company. I further agree to conform to the rules and regulation of the Company. 
 J. At-Will Employment 
 I agree and understand that
employment with the Company is “at-will,” meaning that it is not for any specified period of time and can be terminated by me or by the Company at any time, with or without advance notice, and for any or no particular reason or cause. I
agree and understand that it also means that job duties, title and responsibility and reporting level, compensation and benefits, as well as the Company’s personnel policies and procedures, may be changed at any time at-will by the Company. I
understand and agree that nothing about the fact 

  

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or the content of this Agreement is intended to, nor should be construed to, alter the at-will nature of my employment with the Company. 
 I also understand and agree that the at-will nature of employment with the Company can only be changed by an authorized officer of the Company (other
than me) in an express writing signed and dated by him or her and by me. 
 K. Severability 
 I agree that if one or more provisions of this Agreement are held to be unenforceable under applicable law, such provisions shall be excluded from this
Agreement and the balance of the Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms. 
 L. Authorization to Notify New Employer 
 I hereby authorize the Company to notify my new employer about my rights and
obligations under this Agreement following the termination of my employment with the Company. 
 M. Entire Agreement 
 This Agreement and the offer letter from the Company set forth the entire agreement and understanding between the Company and my relating to the subject
matter herein and merges all prior discussions between us, including but not limited to any and all statements made by any officer, employee or representative of the Company regarding the Company’s financial condition or future prospects. I
understand and acknowledge that, except as set forth in this Agreement and in the offer letter from the Company to me, (i) no other representation or inducement has been made to me, (ii) I have relied on my own judgement and investigation
in accepting my employment with the Company, and (iii) I have not relied on any representation or inducement made by any officer, employee or representative of the Company. No modification of or amendment to this Agreement nor any waiver of any
rights under this Agreement will be effective unless in a writing signed by an authorized officer of the Company (other than me) and me. I understand and agree that any subsequent change or changes in my duties, salary or compensation will not
affect the validity or scope of this Agreement. 
 N. Effective Date 
 This Agreement shall be effective as of the first day of my employment with the Company and shall be binding upon me, my heirs, executor, assigns and administrators and shall inure to the benefit of the Company, its
subsidiaries, successors and assigns. 
 O. Governing Law 
 Although I may work for the Company outside of California or the United States, I understand and agree that this Agreement shall be interpreted and enforced in accordance with the laws of the State of California.

 I HAVE READ THIS AGREEMENT CAREFULLY AND I UNDERSTAND AND ACCEPT THE OBLIGATIONS WHICH IT IMPOSES UPON ME WITH OUT RESERVATION. NO PROMISES OR
REPRESENTATIONS HAVE BEEN MADE TO ME TO INDUCE ME TO SIGN THIS AGREEMENT. I SIGN THIS AGREEMENT VOLUNTARILY AND FREELY. 
  

					
		 		 	
			
	March 27/08	 		 	/Kevin Murai/
	Date	 		 	 Employee Signature
  
 Kevin Murai
 Employee Name (Please Print)

  

 12 

 EXHIBIT A 
  

	1.	The following is a complete list of all inventions or improvement relevant to the subject matter of my employment by the Company that have been made or discovered or conceived or
first reduced to practice by me or jointly with others prior to my employment by the Company that I desire to remove from the operation of the Company’s Proprietary Information and Inventions Agreement: 

  

	__	No Inventions or improvements. 

  

	__	See below: Any and all inventions regarding: 

  

	__	Additional sheets attached. 

  

	2.	I propose to bring to my employment the following material and documents that I obtained during the period of my prior employment. These materials and documents are not the property
of any third party and are not subject to any restrictions under any non-disclosure agreement or other agreement limiting their use. 

  

	__	No materials or documents 

  

	__	See below: 

  

					
			
	  	 		 	  
	Date	 		 	Employee Signature

  

 13Amended and Restated Employment Agreement

 Exhibit 10.1 
 AMENDED AND RESTATED EMPLOYMENT AGREEMENT 
 This AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the Agreement”) is made and entered into as of April 2, 2008
(the “Effective Date”) by and between LAKE SHORE BANCORP INC., a federally-chartered corporation having an office at 125 East 4th Street, Dunkirk, New York 14048 (the
“Company”) and DAVID C. MANCUSO, an individual residing at 50 Lafayette Avenue, Dunkirk, New York 14048 (the “Executive”). 
 INTRODUCTORY STATEMENT 
 LAKE
SHORE SAVINGS BANK, a federally-chartered savings bank having an office at 128 East 4th Street, Dunkirk, New York 14048 (the “Bank) has reorganized from a New York-chartered mutual savings and
loan association to a federally-chartered stock savings bank and has become a wholly-owned subsidiary of the Company, a mid-tier stock holding company, which is majority owned by LAKE SHORE, MHC, a mutual holding
company (the “Reorganization”). In connection with the Reorganization, certain shares of the Company’s common stock were sold in an initial public stock offering. The Executive has served the Bank in an executive capacity for many
years and is familiar with the Bank’s operations. 
 The Board of Directors of the Company has concluded that it is in the best
interests of the Company and their prospective shareholders to secure a continuity in management following the Reorganization. They also consider it desirable to establish a working environment for the Executive which minimizes the personal
distractions that might result from possible business combinations in which the Company might be involved. For these reasons, the Board of Directors of the Company has decided to offer to enter into a contract with the Executive for his future
services. The Executive has accepted this offer. 
 The terms and conditions which the Company and the Executive have agreed to are as
follows. 
 AGREEMENT 
 Section 1. Employment. 
 The Company hereby continues to employ the Executive, and
the Executive hereby accepts such continued employment, during the period and upon the terms and conditions set forth in this Agreement. 
 Section 2. Employment Period; Remaining Unexpired Employment Period. 
 (a) The Company shall employ the
Executive during an initial period of three (3) years beginning on April 2, 2008 (the “Employment Commencement Date”) and ending on the day before the third (3rd) anniversary of the Employment Commencement Date, and during the
period of any additional extensions described in section 2(b) (the “Employment Period). 
 (b) The Board of Directors of the Company
shall conduct an annual review of the Executive’s performance on or about each anniversary of the Employment Commencement Date (each, an “Anniversary Date”) and may, on the basis of such review and by written notice to 

 
the Executive, offer to extend the Employment Period through the day before the third (3rd) anniversary of the relevant Anniversary Date. In such event,
the Employment Period shall be deemed extended in the absence of objection from the Executive by written notice to the Company given within ten (10) business days after his receipt of the Company’s offer of extension. 
 (c) Except as otherwise expressly provided in this Agreement, any reference in this Agreement to the term “Remaining Unexpired Employment Period as
of any date shall mean the period beginning on such date and ending on the day before the third (3rd) anniversary of the Employment Commencement Date or, if later, on the day before the third (3rd) anniversary of the last Anniversary Date
as of which the Employment Period was extended pursuant to section 2(b). 
 (d) Nothing in this Agreement shall be deemed to prohibit the
Company from terminating the Executive’s employment before the end of the Employment Period with or without notice for any reason. This Agreement shall determine the relative rights and obligations of the Company and the Executive in the event
of any such termination. In addition, nothing in this Agreement shall require the termination of the Executive’s employment at the expiration of the Employment Period. Any continuation of the Executive’s employment beyond the expiration of
the Employment Period shall be on an “at-will” basis unless the Company and the Executive agree otherwise. 
 Section 3.
Duties. 
 The Executive shall serve as Chief Executive Officer and President of the Company, having such power, authority and
responsibility and performing such duties as are prescribed by or under the Company’s By-Laws and as are customarily associated with such positions. The Executive shall devote his full business time and attention (other than during weekends,
holidays, approved vacation periods, and periods of illness or approved leaves of absence) to the business and affairs of the Company and shall use his best efforts to advance their respective best interests. 
 Section 4. Cash Compensation. 
 In consideration for the services to be rendered by the Executive hereunder, the Company shall pay to him a salary at an initial annual rate of TWO HUNDRED FIFTY FIVE THOUSAND DOLLARS ($255,000), payable in
approximately equal installments in accordance with their respective customary payroll practices for senior officers. The Company’s Board of Directors shall review the Executive’s annual rate of salary at such times during the Employment
Period as it deems appropriate, but not less frequently than once every twelve (12) months, and may, at its discretion, approve a salary increase. In addition to salary, the Executive may receive other cash compensation from the Company for
services hereunder at such times, in such amounts and on such terms and conditions as the Board of Directors of the Company may determine. 
  

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 Section 5. Employee Benefit Plans and Programs. 
 During the Employment Period, the Executive shall be treated as an employee of the Company and shall be entitled to participate in and receive benefits
under any and all qualified or non-qualified retirement, pension, savings, profit-sharing or stock bonus plans, any and all group life, health (including hospitalization, medical and major medical), dental, accident and long-term disability
insurance plans, and any other employee benefit and compensation plans (including, but not limited to, any incentive compensation plans or programs, stock option and appreciation rights plans and restricted stock plans) as may from time to time be
maintained by, or cover employees of, the Company, in accordance with the terms and conditions of such employee benefit plans and programs and compensation plans and programs and consistent with the Company’s customary practices. 
 Section 6. Indemnification and Insurance. 
 (a) To the maximum extent permitted under applicable law, during the Employment Period and for a period of six (6) years thereafter, the Company shall cause the Executive to be covered by and named as an insured
under any policy or contract of insurance obtained by them to insure their directors and officers against personal liability for acts or omissions in connection with service as an officer or director of the Company or the Bank or service in other
capacities at their request, provided, however, that any indemnification provided under this Agreement shall be subject to any applicable Office of Thrift Supervision (“OTS”) indemnification rules. The coverage provided to the Executive
pursuant to this section 6 shall be of the same scope and on the same terms and conditions as the coverage (if any) provided to other officers or directors of the Company. 
 (b) To the maximum extent permitted under applicable law, during the Employment Period and for a period of six (6) years thereafter, the Company
shall indemnify the Executive against and hold him harmless from any costs, damages, losses and exposures arising out of a bona fide action, suit or proceeding in which he may be involved by reason of his having been a director or officer of the
Company to the fullest extent and on the most favorable terms and conditions that similar indemnification is offered to any director or officer of the Company or any subsidiary or affiliate thereof, provided, however, that any indemnification
provided under this Agreement shall be subject to any applicable OTS indemnification rules. 
 (c) The Executive, the Company and the Bank
agree that the termination benefits described in this Section 6 are intended to be exempt from Section 409A (“Section 409A”) of the Internal Revenue Code of 1986, as amended (the “Code”) pursuant to Treasury Regulation
Section 1.409A-l(b)(10) as certain indemnification and liability insurance plans. 
 Section 7. Outside Activities.

 The Executive may serve as a member of the boards of directors of such business, community and charitable organizations as he may
disclose to and as may be approved by the Board of Directors of the Company (which approval shall not be unseasonably withheld); provided, however, that such service shall not materially interfere with the performance of his duties under this
Agreement nor shall it violate any applicable laws or regulations. The Executive may also engage in personal business and investment activities which do not materially interfere with the performance of his duties hereunder; provided, however, that
such 

  

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activities are not prohibited under any code of conduct or investment or securities trading policy established by the Company and generally applicable to all
similarly situated executives and that such activities are not prohibited by any applicable laws or regulations. 
 Section 8.
Working Facilities and Expenses. 
 The Executive’s principal place of employment shall be at the Company’s executive
offices at the address first above written, or at such other location as the Company and the Executive may mutually agree upon. The Company shall provide the Executive at his principal place of employment with a private office, secretarial services
and other support services and facilities suitable to his positions with the Company and necessary or appropriate in connection with the performance of his assigned duties under this Agreement. The Company shall reimburse the Executive for his
ordinary and necessary business expenses, including, without limitation, fees for memberships in such clubs and organizations that are necessary and appropriate for business purposes as mutually agreed by the Company and the Executive, and his
travel and entertainment expenses incurred in connection with the performance of his duties under this Agreement, in each case only if such expenses are presented and approved in accordance with the Company’s business reimbursement policy then
in effect. 
 Section 9. Termination Due to Death. 
 The Executive’s employment with the Company shall terminate, automatically and without any further action on the part of any party to this Agreement,
on the date of the Executive’s death. In such event: 
 (a) The Company shall pay to the Executive’s estate his earned but unpaid
compensation (including, without limitation, salary and all other items which constitute wages under applicable law) as of the date of his termination of employment as defined in Treasury Regulation Section 1.409A-l(h)(l)(ii). This payment
shall be made at the time and in the manner prescribed by law applicable to the payment of wages but in no event later than thirty (30) days after the date of the Executive’s termination of employment. 
 (b) The Company shall provide the benefits, if any, due to the Executive’s estate, surviving dependents or his designated beneficiaries under the
employee benefit plans and programs and compensation plans and programs maintained for the benefit of the officers and employees of the Company. The time and manner of payment or other delivery of these benefits and the recipients of such benefits
shall be determined according to the terms and conditions of the applicable plans and programs. 
 The payments and benefits described in sections 9(a) and
(b) shall be referred to in this Agreement as the “Standard Termination Entitlements.” 
 Section 10.
Termination Due to Disability. 
 The Company may terminate the Executive’s employment upon a determination, by vote of a
majority of the members of the Board of Directors of the Company, acting in reliance on the written advice of a medical professional acceptable to them, that the Executive is suffering from a physical or mental impairment which, at the date of the
determination, has prevented the Executive from performing his assigned duties on a substantially full-time basis for a period of at least one hundred and eighty (180) days during the period of one (1) year 

  

 -4- 

 
ending with the date of the determination or is likely to result in death or prevent the Executive from performing his assigned duties on a substantially
full-time basis for a period of at least one hundred and eighty (180) days during the period of one (1) year beginning with the date of the determination. In such event: 
 (a) The Company shall pay and deliver to the Executive (or in the event of his death before payment, to his estate and surviving dependents and
beneficiaries, as applicable) the Standard Termination Entitlements within the timeframes contained in section 9. 
 (b) In addition to the
Standard Termination Entitlements, the Company shall continue to pay the Executive his base salary, at the annual rate in effect for him immediately prior to the termination of his employment, during a period ending on the earliest of: (i) the
expiration of one hundred and eighty (180) days after the date of termination of his employment; (ii) the date on which long-term disability insurance benefits are first payable to him under any long-term disability insurance plan covering
employees of the Company (the “LTD Eligibility Date”); (iii) the date of his death; and (iv) the expiration of the Remaining Unexpired Employment Period (the “Initial Continuation Period). If the end of the Initial
Continuation Period is neither the LTD Eligibility Date nor the date of his death, the Company shall continue to pay the Executive his base salary, at an annual rate equal to sixty percent (60%) of the annual rate in effect for him immediately
prior to the termination of his employment, during an additional period ending on the earliest of the LTD Eligibility Date, the date of his death and the expiration of the Remaining Unexpired Employment Period. 
 A termination of employment due to disability under this section 10 shall be effected by notice of termination given to the Executive by the Company and shall take
effect on the later of the effective date of termination specified in such notice or the date on which the notice of termination is deemed given to the Executive. 
 Section 11. Discharge with Cause. 
 (a) The Company may terminate the
Executive’s employment during the Employment Period, and such termination shall be deemed to have occurred with “Cause”, only if: 
 (i) The Board of Directors of the Company, by majority vote of their entire membership, determine that the Executive should be discharged 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, or any material breach of
this Agreement; and 
 (ii) at least forty-five (45) days prior to the votes contemplated by section 1 l(a)(i), the
Company has provided the Executive with notice of its intent to discharge the Executive for Cause, detailing with particularity the facts and circumstances which are alleged to constitute Cause (the “Notice of Intent to Discharge”); and

 (iii) after the giving of the Notice of Intent to Discharge and before the taking of the votes contemplated by section
11(a)(i), the Executive (together with his legal counsel, if he so desires) is afforded a reasonable opportunity to make both written and oral presentations before the Board of Directors of the Company for the purpose of refuting the alleged grounds
for Cause for his discharge; and 
  

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 (iv) after the votes contemplated by section 11(a)(i), the Company have furnished to the
Executive a notice of termination which shall specify the effective date of his termination of employment (which shall in no event be earlier than the date on which such notice is deemed given) and include a copy of a resolution or resolutions
adopted by the Board of Directors of the Company, certified by its corporate secretary and signed by each member of the Board of Directors voting in favor of adoption of the resolution(s), authorizing the termination of the Executive’s
employment with Cause and stating with particularity the facts and circumstances found to constitute Cause for his discharge (the “Final Discharge Notice”). 
 (b) If the Executive is discharged during the Employment Period with Cause, the Company shall pay and provide to him (or, in the event of his death, to his estate, his surviving beneficiaries and his dependents) the
Standard Termination Entitlements only, within the timeframes contained in section 9. Following the giving of a Notice of Intent to Discharge, the Company shall temporarily suspend the Executive’s duties and authority and, in such event, shall
also suspend the payment of salary and other cash compensation, but not the Executive’s participation in retirement, insurance and other employee benefit plans. If the Executive is not discharged, or is discharged without Cause, within
forty-five (45) days after the giving of a Notice of Intent to Discharge, payments of salary and cash compensation shall resume, and all payments withheld during the period of suspension shall be promptly restored. If the Executive is
discharged with Cause not later than forty-five (45) days after the giving of the Notice of Intent to Discharge, all payments withheld during the period of suspension shall be deemed forfeited and shall not be included in the Standard
Termination Entitlements. If the Company does not give a Final Discharge Notice to the Executive within ninety (90) days after giving a Notice of Intent to Discharge, the Notice of Intent to Discharge shall be deemed withdrawn and any future
action to discharge the Executive with Cause shall require the giving of a new Notice of Intent to Discharge. 
 Section 12.
Discharge without Cause. 
 The Company may discharge the Executive at any time during the Employment Period and, unless such
discharge constitutes a discharge with Cause: 
 (a) The Company shall pay and deliver to the Executive (or in the event of his death before
payment, to his estate and surviving dependents and beneficiaries, as applicable) the Standard Termination Entitlements within the timeframes contained in section 9. 
 (b) During the Remaining Unexpired Employment Period, the Company shall provide for the Executive and his dependents continued group life, health (including hospitalization, medical and major medical), dental,
accident and long-term disability insurance benefits on substantially the same terms and conditions (including any required premium-sharing arrangements, co-payments and deductibles) in effect for similarly situated employees of the Company. The
coverage provided under this section 12(b) may, at the election of the Company, be secondary to the coverage provided as part of the Standard Termination Entitlements and to any employer-paid coverage provided by a subsequent employer or through
Medicare, with the result that benefits under the other coverages will offset the coverage required by this section 12(b). 
  

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 (c) The Company shall make a lump sum payment to the Executive (or, in the event of his death before
payment, to his estate), in an amount equal to the value of the salary, bonus, short-term and long-term cash compensation that the Executive received in the calendar year preceding that in which the termination of employment with the Company occurs
divided by twelve (12) and then multiplied by the number of months remaining in the Remaining Unexpired Employment Period to compensate the Executive for the payments the Executive would have received during the Remaining Unexpired Employment
Period. Such lump sum shall be paid in lieu of all other payments of salary, bonus, short-term and long-term cash compensation provided for under this Agreement in respect of the period following any such termination. Such payment shall be made
(without discounting for early payment) within thirty (30) days following the Executive’s termination of employment. 
 The
payments and benefits described in sections 12(b) and 12(c) are referred to in this Agreement as the “Additional Termination Entitlements”. 
 Section 13. Resignation. 
 (a) The Executive may resign from his employment with
the Company at any time. A resignation under this section 13 shall be effected by notice of resignation given by the Executive to the Company and shall take effect on the later of the effective date of termination specified in such notice or the
date on which the notice of termination is deemed given by the Executive. The Executive’s resignation of any of the positions within the Bank or the Company to which he has been assigned shall be deemed a resignation from all such positions.

 (b) The Executive’s resignation shall be deemed to be for “Good Reason” if the effective date of resignation occurs within
ninety (90) days after any of the following: 
 (i) the failure of the Company (whether by act or omission of its Board
of Directors, or otherwise) to appoint or re-appoint or elect or re-elect the Executive to the position(s) with the Company, specified in section 3 of this Agreement; 
 (ii) any reduction of the Executive’s rate of base salary in effect from time to time, whether or not material, or any failure (other
than due to reasonable administrative error that is cured promptly upon notice) to pay any portion of the Executive’s compensation as and when due; 
 (iii) any material breach by the Company of any material term, condition or covenant contained in this Agreement; provided that the Executive shall have given notice of such material adverse effect to the Company, and
the Company has not fully cured such failure within thirty (30) days after such notice is deemed given; or 
 (iv) a
change in the Executive’s principal place of employment to a place that is not the principal executive office of the Company, or a relocation of the Company’s principal executive office to a location that is both more than one-hundred
(100) miles away from the Executive’s principal residence and more than one-hundred (100) miles away from the location of the Company’s principal executive office on the date of this Agreement. 
  

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 In all other cases, a resignation by the Executive shall be deemed to be without Good Reason. 

(c) In the event of the Executive’s resignation before the expiration of the Employment Period, the Company shall pay and deliver the Standard
Termination Entitlements within the timeframes contained in section 9. In addition, if the Executive’s resignation is deemed to be a resignation with Good Reason, the Company shall also pay and deliver the Additional Termination Entitlements
within the timeframes contained in section 12. 
 Section 14. Terms and Conditions of the Additional Termination
Entitlements. 
 The Company and the Executive hereby stipulate that the damages which may be incurred by the Executive following
any termination of employment are not capable of accurate measurement as of the date first above written and that the Additional Termination Entitlements constitute reasonable damages under the circumstances and shall be payable without any
requirement of proof of actual damage and without regard to the Executive’s efforts, if any, to mitigate damages. The Company and the Executive further agree that the Company may condition the payment and delivery of the Additional Termination
Entitlements on (i) the receipt of the Executive’s resignation from any and all positions which he holds as an officer, director or committee member with respect to the Company, the Bank or any subsidiary or affiliate of either of them and
(ii) a release of the Company and its officers, directors, shareholders, subsidiaries and affiliates, in form and substance satisfactory to the Company, of any liability to the Executive, whether for compensation or damages, in connection with
his employment with the Company and the termination of such employment except for the Standard Termination Entitlements and the Additional Termination Entitlements. 
 Section 15. Termination Upon or Following a Change of Control. 
 (a) A “Change
of Control” shall be deemed to have occurred upon the happening of any of the following events: 
 (i) the consummation
of a reorganization, merger or consolidation of the Company with one (1) or more other persons, other than a transaction following which: 
 (A) at least 51% of the equity ownership interests of the entity resulting from such transaction are beneficially owned (within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended (“Exchange
Act”)) in substantially the same relative proportions by persons who, immediately prior to such transaction, beneficially owned (within the meaning of Rule 13d-3 promulgated under the Exchange Act) at least 51% of the outstanding equity
ownership interests in the Company; and 
 (B) at least 51% of the securities entitled to vote generally in the election of directors of the
entity resulting from such transaction are beneficially owned (within the meaning of Rule 13d-3 promulgated 

  

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under the Exchange Act) in substantially the same relative proportions by persons who, immediately prior to such transaction, beneficially owned (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) at least 51% of the securities entitled to vote generally in the election of directors of the Company; 
 (ii) the acquisition of all or substantially all of the assets of the Company or beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 25% or more of the outstanding securities of the Company entitled to vote generally in the election of directors by any person or by any persons acting in concert; 
 (iii) a complete liquidation or dissolution of the Company; 
 (iv) the occurrence of any event if, immediately following such event, at least 50% of the members of the Board of Directors of the
Company do not belong to any of the following groups: 
 (A) individuals who were members of the Board of Directors of the Company on the
date of this Agreement; or 
 (B) individuals who first became members of the Board of Directors of the Company after the date of this
Agreement either: 
 (1) upon election to serve as a member of the Board of Directors of the Company by affirmative vote of
three-quarters of the members of such board, or of a nominating committee thereof, in office at the time of such first election; or 
 (2) upon election by the shareholders of the Board of Directors of the Company to serve as a member of such board, but only if nominated for election by affirmative vote of three-quarters of the members of the Board of Directors of the
Company, or of a nominating committee thereof, in office at the time of such first nomination; 
 provided, however, that such
individual’s election or nomination did not result from an actual or threatened election contest or other actual or threatened solicitation of proxies or consents other than by or on behalf of the Board of Directors of the Company; provided,
however, that this section 15(a)(iv) shall only apply if the Company is not majority owned by Lake Shore, MHC; or 
 (v) any
event which would be described in section 15(a)(i), (ii), (iii) or (iv) if the term “Bank were substituted for the term “Company” therein. 
 In no event, however, shall a Change of Control be deemed to have occurred as a result of (i) any acquisition of securities or assets of the Company, the Bank, or a subsidiary of either of them, by the Company, the Bank, or any
subsidiary of either of them, or by any employee benefit plan maintained by any of them or (ii) the conversion of Lake Shore, MHC to a stock form company 

  

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and the issuance of additional shares of the Company in connection therewith. For purposes of this section 15(a), the term “person” shall have the
meaning assigned to it under Sections 13(d)(3) or 14(d)(2) of the Exchange Act. 
 (b) For purposes of this Agreement, a “Pending Change
of Control” shall mean: (i) the signing of a definitive agreement for a transaction which, if consummated, would result in a Change of Control; (ii) the commencement of a tender offer which, if successful, would result in a Change of
Control; or (iii) the circulation of a proxy statement seeking proxies in opposition to management in an election contest which, if successful, would result in a Change of Control. 
 (c) Notwithstanding anything in this Agreement to the contrary, for purposes of computing the Additional Termination Entitlements due upon a termination
of employment that occurs, or is deemed to have occurred, after a Change of Control, the Remaining Unexpired Employment Period shall be deemed to be three (3) full years. 
 Section 16. Covenant Not To Compete. 
 The Executive hereby covenants and agrees that, in the event of his termination of employment with the Company prior to the expiration of the Employment Period, for a period of three (3) years following the date
of his termination of employment with the Company, he shall not, without the written consent of the Company, become an officer, employee, consultant, director or trustee of any savings bank, savings and loan association, savings and loan holding
company, bank or bank holding company, any other entity engaged in the business of accepting deposits or making loans or any direct or indirect subsidiary or affiliate of any such entity, that entails working within the State of New York or any city
or county in any other state in which the Company or the Bank maintains an office; provided, however, that this section 16 shall not apply if the Executive is entitled to the Additional Termination Entitlements due to a Change of Control or after a
Pending Change of Control. 
 Section 17. Confidentiality. 
 Unless he obtains the prior written consent of the Company, the Executive shall keep confidential and shall refrain from using for the benefit of himself,
or any person or entity other than the Company or any entity which is a subsidiary of the Company or of which the Company is a subsidiary, any material document or information obtained from the Company, or from its parent or subsidiaries, in the
course of his employment with any of them concerning their properties, operations or business (unless such document or information is readily ascertainable from public or published information or trade sources or has otherwise been made available to
the public through no fault of his own) until the same ceases to be material (or becomes so ascertainable or available); provided, however, that nothing in this section 17 shall prevent the Executive, with or without the Company’s consent, from
participating in or disclosing documents or information in connection with any judicial or administrative investigation, inquiry or proceeding to the extent that such participation or disclosure is required under applicable law. 
  

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 Section 18. Solicitation. 
 The Executive hereby covenants and agrees that, for a period of three (3) years following his termination of employment with the Company or the Bank,
he shall not, without the written consent of the Company, either directly or indirectly: 
 (a) solicit, offer employment to, or take any
other action intended, or that a reasonable person acting in like circumstances would expect, to have the effect of causing any officer or employee of the Company, the Bank or any of their respective subsidiaries or affiliates to terminate his or
her employment and accept employment or become affiliated with, or provide services for compensation in any capacity whatsoever to, any savings bank, savings and loan association, bank, bank holding company, savings and loan holding company, or
other institution engaged in the business of accepting deposits, making loans or doing business within the counties specified in section 16; 
 (b) provide any information, advice or recommendation with respect to any such officer or employee of any savings bank, savings and loan association, bank, bank holding company, savings and loan holding company, or other institution engaged
in the business of accepting deposits, making loans or doing business within the counties specified in section 16; that is intended, or that a reasonable person acting in like circumstances would expect, to have the effect of causing any officer or
employee of the Company, the Bank, or any of their respective subsidiaries or affiliates to terminate his employment and accept employment or become affiliated with, or provide services for compensation in any capacity whatsoever to, any savings
bank, savings and loan association, bank, bank holding company, savings and loan holding company, or other institution engaged in the business of accepting deposits, making loans or doing business within the counties specified in section 16;

 (c) solicit, provide any information, advice or recommendation or take any other action intended, or that a reasonable person acting in
like circumstances would expect, to have the effect of causing any customer of the Company or the Bank to terminate an existing business or commercial relationship with the Company or the Bank; 
 provided however, that this section 18 shall not apply if the Executive is entitled to the Additional Termination Entitlements due to a Change of Control or after
a Pending Change of Control. 
 Section 19. No Effect on Employee Benefit Plans or Programs. 
 The termination of the Executive’s employment during the term of this Agreement or thereafter, whether by the Company or by the Executive, shall have
no effect on the rights and obligations of the parties hereto under the Company’s or the Bank’s qualified or non-qualified retirement, pension, savings, thrift, profit-sharing or stock bonus plans, group life, health (including
hospitalization, medical and major medical), dental, accident and long term disability insurance plans or such other employee benefit plans or programs, or compensation plans or programs, as may be maintained by, or cover employees of, the Company
or the Bank from time to time; provided, however, that nothing in this Agreement shall be deemed to duplicate any compensation or benefits provided under any agreement, plan or program covering the Executive to which the Company is a pasty and any
duplicative amount payable under any such agreement, plan or program shall be applied as an offset to reduce the amounts otherwise payable hereunder. 
  

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 Section 20. Successors and Assigns. 
 This Agreement will inure to the benefit of and be binding upon the Executive, his legal representatives and testate or intestate distributees, and the
Company and their respective successors and assigns, including any successor by merger or consolidation or a statutory receiver or any other person or firm or corporation to which all or substantially all of the assets and business of the Company
may be sold or otherwise transferred. Failure of the Company to obtain from any successor its express written assumption of the Company’s obligations hereunder at least sixty (60) days in advance of the scheduled effective date of any such
succession shall be deemed a material breach of this Agreement. 
 Section 21. Notices. 
 Any communication required or permitted to be given 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 (5) 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 (I) such party may by written notice specify to the other party: 
 If to the Executive: 
 David C. Mancuso 
 50 Lafayette Avenue 
 Dunkirk, New York 14048 
 If to the Company: 
 Lake Shore Bancorp,
Inc. 
 125 East 4th Street 
 Dunkirk, New York 14048 
  

			
	Attention:	  	Chairman, Compensation Committee
		  	of the Board of Directors

 Section 22. Waiver. 
 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
(I) or more times shall not be deemed a waiver or relinquishment of such right or power at any other time or times. 
 Section 23. Counterparts. 
 This Agreement may be executed in two (2) or more counterparts, each of
which shall be deemed an original, and all of which shall constitute one and the same Agreement. 
  

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 Section 24. Governing Law. 
 This Agreement shall be governed by and construed and enforced in accordance with the federal laws of the United States and, to the extent that federal
law is inapplicable, in accordance with the laws of the State of New York applicable to contracts entered into and to be performed entirely within the State of New York. 
 Section 25. Headings and Construction. 
 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. 
 Section 26. Entire Agreement; Modifications. 
 This instrument contains the entire agreement of the parties relating to the subject matter hereof, and supersedes in its entirety any and all prior agreements, understandings or representations relating to the
subject matter hereof. No modifications of this Agreement shall be valid unless made in writing and signed by the parties hereto. Notwithstanding the preceding sentence, this Agreement shall be construed and administered in such manner as shall be
necessary to effect compliance with Section 409A and shall be subject to amendment in the future, in such manner as the Company and the Bank may deem necessary or appropriate to effect such compliance; provided that any such amendment shall
preserve for the Executive the benefit originally afforded pursuant to this Agreement. 
 Section 27.
Non-duplication. 
 In the event that the Executive shall perform services for the Bank or any other direct or indirect
subsidiary or affiliate of the Company or the Bank, any compensation or benefits provided to the Executive by such other employer shall be applied to offset the obligations of the Company hereunder, it being intended that this Agreement set forth
the aggregate compensation and benefits payable to the Executive for all services to the Company and all of its respective direct or indirect subsidiaries and affiliates. 
 Section 28. Survival. 
 The provisions of sections 6, 16, 17, 18 and 19 shall
survive the expiration of the Employment Period or termination of the Agreement. 
 Section 29. Indemnification for
Attorneys’ Fees. 
 The Company shall indemnify, hold harmless and defend Executive against reasonable costs, including legal
fees, incurred by him in connection with or arising out of any action, suit or proceeding in which he may be involved, as a result of his efforts, in good faith, to defend or enforce the terms of this Agreement; provided, however, that Executive
shall have substantially prevailed on the merits pursuant to a judgment, decree or order of a court of competent jurisdiction or of an arbitrator in an arbitration proceeding, provided, however, that any indemnification provided under this Agreement
shall be subject to any applicable OTS indemnification rules. The determination whether the Executive shall have substantially prevailed on the merits and is therefore entitled to such indemnification, shall be made by the court or arbitrator, as
applicable. In the event of a settlement pursuant to a settlement agreement, any indemnification payment under this section 29 shall be made only after a determination by 

  

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the members of the Board (other than the Executive and any other member of the Board to which the Executive is related by blood or marriage) that the
Executive has acted in good faith and that such indemnification payment is in the best interests of the Company. 
 Section 30.
Required Regulatory Provisions 
 The following provisions are included for the purposes of complying with various laws, rules
and regulations applicable to the Company: 
 (a) Notwithstanding anything herein contained to the contrary, in no event shall the aggregate
amount of compensation payable to the Executive under section 12(b) hereof exceed three (3) times the Executive’s average annual compensation (within the meaning of OTS Regulatory Bulletin 27a or any successor thereto) for the last five
(5) consecutive calendar years to end prior to his termination of employment with the Company (or for his entire period of employment with the Company if less than five (5) calendar years). The compensation payable to the Executive
hereunder shall be further reduced (but not below zero) if such reduction would avoid the assessment of excise taxes on excess parachute payments (within the meaning of Section 280G of the Code). 
 (b) Notwithstanding anything herein contained to the contrary, any payments to the Executive by the Company, whether pursuant to this Agreement or
otherwise, are subject to and conditioned upon their compliance with Section 18(k) of the Federal Deposit Insurance Act (“FDI Act”), 12 U.S.C. 5 1828(k), and any regulations promulgated thereunder. 
 (c) Notwithstanding anything herein contained to the contrary, if the Executive is suspended from office and/or temporarily prohibited from participating
in the conduct of the affairs of the Company pursuant to a notice served under Section 8(e)(3) or 8(g)(l) of the FDI Act, 12 U.S.C. §1818(e)(3) or 1818(g)(l), the Company’s obligations under this Agreement shall be suspended as of the
date of service of such notice, unless stayed by appropriate proceedings. If the charges in such notice are dismissed, the Company, in its discretion, may (i) pay to the Executive all or part of the compensation withheld while the
Company’s obligations hereunder were suspended and (ii) reinstate, in whole or in part, any of the obligations which were suspended. 
 (d) Notwithstanding anything herein contained to the contrary, if the Executive is removed and/or permanently prohibited from participating in the conduct of the Company’s affairs by an order issued under Section 8(e)(4) or
8(g)(l) of the FDI Act, 12 U.S.C. §1818(e)(4) or (g)(l), all prospective obligations of the Company under this Agreement shall terminate as of the effective date of the order, but vested rights and obligations of the Company and the Executive
shall not be affected. 
 (e) Notwithstanding anything herein contained to the contrary, if the Company is in default (within the meaning of
Section 3(x)(1) of the FDI Act, 12 U.S.C. § 1813(x)(1), all prospective obligations of the Company under this Agreement shall terminate as of the date of default, but vested rights and obligations of the Company and the Executive shall not
be affected. 
 (f) Notwithstanding anything herein contained to the contrary, all prospective obligations of the Company hereunder shall be
terminated, except to the extent that a continuation of this Agreement is necessary for the continued operation of the Company: (i) by 

  

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the Director of the OTS or his designee or the Federal Deposit Insurance Corporation (“FDIC”), at the time the FDIC enters into an agreement to
provide assistance to or on behalf of the Company under the authority contained in Section 13(c) of the FDI Act, 12 U.S.C. §1823(c); (ii) by the Director of the OTS or his designee at the time such Director or designee approves a
supervisory merger to resolve problems related to the operation of the Company or when the Company is determined by such Director to be in an unsafe or unsound condition. The vested rights and obligations of the parties shall not be affected.

 If and to the extent that any of the foregoing provisions shall cease to be required or by applicable law, rule or regulation, the same shall become
inoperative as though eliminated by formal amendment of this Agreement. 
 Section 31. Guarantee; Non-Duplication.

 The Company hereby agrees to guarantee the payment by the Bank of any benefits and compensation to which the Executive is or may be
entitled to under the terms and conditions of the employment agreement of even date herewith between the Bank and the Executive. In the event that the Executive shall perform services for the Bank or any other direct or indirect subsidiary of the
Company, any compensation or benefits provided to the Executive by such other employer shall be applied to offset the obligations of the Company hereunder, it being intended that this Agreement set forth the aggregate compensation and benefits
payable to the Executive for all services to the Company and all of its direct or indirect subsidiaries. 
 Section 32.
Payments to Specified Employees. 
 Notwithstanding anything in this Agreement to the contrary, if at the time of
Executive’s “separation from service” (within the meaning of Section 409A and Treas. Reg. §1.409A-1(h)), the Executive is a “specified employee” (within the meaning of Section 409A and Treas. Reg.
§1.409A-1(i)(1)), the Bank will not pay or provide any “Specified Benefits” (as defined herein) until after the end of the sixth calendar month beginning after the Executive’s separation from service (the “409A Suspension
Period”); provided, however, that to the extent the 409A Suspension Period is imposed as a result of a Change of Control as defined in section 15(a), the resulting Specified Benefits shall be paid into a rabbi trust for the benefit of the
Executive as if the 409A Suspension Period was not imposed with such amounts then being distributed to the Executive within fourteen (14) days after the 409A Suspension Period ends. For purposes of this Agreement, “Specified Benefits”
are any amounts or benefits that would be subject to taxation under Section 409A if the Bank or the Company were to pay them, pursuant to this Agreement, on account of the Executive’s separation from service (and without the delay
contemplated by this paragraph). 
 Section 33. Involuntary Termination Payments to Employees (Safe Harbor).

 To the extent allowable under Section 409A, in the event a payment is made to an employee upon an involuntary termination of
employment, as deemed pursuant to this Agreement, such payment will not be subject to Section 409A provided that such payment does not exceed two (2) times the lesser of (i) the sum of the Executive’s annualized compensation
based on the taxable year immediately preceding the year in which termination of employment occurs or (ii) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Code for the year in
which the Executive terminates service 

  

 -15- 

 
(the “Safe Harbor Amount”). However, if such payment exceeds the Safe Harbor Amount, only the amount in excess of the Safe Harbor Amount will be
subject to Section 409A. In addition, if such Executive is considered a specified employee, such payment in excess of the Safe Harbor Amount will have its timing delayed and will be subject to the 409A Suspension Period as provided in section
32 of this Agreement. 
  

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 IN WITNESS WHEREOF the Company has
caused this Agreement to be executed and the Executive has hereunto set his hand, all as of the day and year first above written. 
  

	
	 /s/ David C. Mancuso

	 DAVID C. MANCUSO

	
	 LAKE SHORE BANCORP, INC.

 Attest: 
  

									
	 By:
	 	 /s/ Lori Danforth
	 		 	By:	 	 /s/ Rachel A. Foley

	 Name:
	 	Lori Danforth	 		 	Name:	 	Rachel A. Foley
	 Title:
	 	Assistant Corporate Secretary	 		 	Title:	 	Chief Financial Officer

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