Document:

Exhibit 10.2

 

GENERATIONS BANK

 

AMENDED AND RESTATED
EMPLOYMENT AGREEMENT

 

This
Amended and Restated Employment Agreement (the “Agreement”)
is dated this 31st day of August, 2020, to be effective as of the Effective Date (as such term is defined in Section 23
below), by and between Generations Bank, a federally chartered
savings bank with its principal office in Seneca Falls, New
York (the “Bank”),
and Shelley Tafel (“Executive”).
References to the “Company” mean Generations
Bancorp NY, Inc. a Maryland corporation that owns
100% of the common stock of the Bank. The Company shall
be a signatory to this Agreement for the sole purpose of guaranteeing the Bank’s
performance hereunder.

 

WITNESSETH

 

WHEREAS, the
Executive is currently employed as Chief Financial Officer of the Bank and is a party to an employment agreement effective as
of July 29, 2019 (the “Original Agreement”); and

 

WHEREAS, in
connection with the conversion of The Seneca Falls Savings Bank, MHC (the “MHC”) from the mutual holding company
to the stock holding company form of organization and the related offering of shares of common stock (the “Offering”)
by Generations Bancorp NY, Inc., a newly formed Maryland-chartered stock holding company which will serve as the new holding
company of the Bank upon completion of the second-step conversion (the “Company”), the Bank desires to amend
and restate the Original Agreement in order to remove any reference to the MHC structure and to make certain other changes (collectively
the “Second-Step Conversion”); and

 

WHEREAS, the
Original Agreement may be amended in accordance with Section 14 of the Original Agreement and Executive has agreed to such
amendment and restatement of the Original Agreement; and

 

WHEREAS, in
connection with the Second-Step Conversion, the parties desire to enter into this Agreement in order to induce Executive to continue
his employment with the Bank, and to provide further incentive for Executive to achieve the financial and performance objectives
of the Bank; and

 

WHEREAS, the
Bank desires to set forth the rights and responsibilities of Executive and the compensation payable to Executive, as modified
from time to time, after the Second-Step Conversion; and

 

WHEREAS, this
Agreement shall take effect, and supersede and replace the Original Agreement, as of the Effective Date.

 

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

 

1.            POSITION
AND RESPONSIBILITIES.

 

During
the period of her employment hereunder, Executive agrees to continue to serve as Chief Financial Officer of the Bank (the “Executive
Position”). During said period, Executive also
agrees to continue to serve, if elected,
as an officer and director of any subsidiary or affiliate of the Bank. Failure to reelect
Executive to Executive Position without the consent of
Executive during the term of this Agreement (except for any termination for Cause, as defined herein) shall constitute a breach
of this Agreement.

    

     

    

  

2.            TERM
AND DUTIES.

 

(a)            The
period of Executive’s employment
under this Agreement shall begin as of the date first above written and shall continue for a period of 36 full calendar months
thereafter. Commencing on the first anniversary date of this Agreement, and continuing at each anniversary date thereafter,
the Agreement shall renew for an additional year such that the remaining term shall be 36
full calendar months; provided,
however, if written notice of nonrenewal is provided to Executive at least ten days and not
more than 30 days prior to any anniversary date, the term
of this Agreement shall not so renew. On an annual basis prior to the deadline for the notice period referenced above,
the board of directors of the Company (the “Board
of Directors”) shall conduct a performance review of Executive for purposes of determining whether to provide notice
of nonrenewal.

 

(b)            During
the period of her employment hereunder, except for periods of absence occasioned by illness,
reasonable vacation periods, and reasonable leaves of absence approved by the board of directors
of the Bank (“Board”),
Executive shall devote substantially all her business time,
attention, skill, and efforts to the faithful performance of her duties hereunder including activities and services related to
the organization, operation and management of the Bank; provided, however, that, with the approval of the Board of the Bank, as
evidenced by a resolution of such Board, from time to time, Executive may serve, or continue to serve, on the boards of directors
of, and hold any other offices or positions in, business companies or business organizations, which, in such Board’s judgment,
will not present any conflict of interest with the Bank, or materially affect the performance of Executive’s duties pursuant
to this Agreement it being understood that membership in and service on boards or committees of social, religious, charitable
or similar organizations does not require Board approval pursuant to this Section 2(b). For purposes of this Section 2(b),
Board approval shall be deemed to have been granted as to service with any such business company or organization that Executive
was serving as of the date of this Agreement.

 

3.            COMPENSATION,
BENEFITS AND REIMBURSEMENT.

 

(a)            The
compensation specified under this Agreement shall constitute the salary and benefits paid for the duties described in
Section 2(b). The Bank shall pay Executive as compensation a salary of not less than $167,582 per
year (“Base Salary”). Such Base
Salary shall be payable biweekly, or with such other frequency as officers and employees are generally paid. During the
period of this Agreement, Executive’s Base Salary shall be reviewed at least annually. Such review may be conducted by
a Committee designated by the Board, and the Bank may increase, but not decrease (except a decrease that is generally
applicable to all employees) Executive’s Base Salary (with any increase in Base Salary to become “Base Salary”
for purposes of this Agreement). In addition to the Base Salary provided in this Section 3(a), the Bank shall provide
Executive at no cost to Executive with all such other benefits as are provided uniformly to permanent full-time employees of
the Bank. Base Salary shall include any amounts of compensation deferred by Executive under qualified and nonqualified plans
maintained by the Bank.

 

(b)            The
Bank will provide Executive with employee benefit plans, arrangements and perquisites substantially equivalent to those in which
Executive was participating or otherwise deriving benefit from immediately prior to the beginning of the term of this Agreement,
and the Bank will not, without Executive’s prior written consent, make any changes in such plans,
arrangements or perquisites which would adversely
affect Executive’s rights or benefits thereunder, except as to any changes that are
applicable to all participating employees or as reasonably or customarily available. Without limiting the generality of the foregoing
provisions of this Subsection (b), Executive will be entitled to participate in or receive benefits under any employee benefit
plans including, but not limited to, retirement plans, supplemental retirement plans, pension plans, profit-sharing plans, health-and-accident
insurance plans, medical coverage or any other employee benefit plan or arrangement made available by the Bank or the Company
in the future to its senior executives and key management employees, subject to and on a basis consistent with the terms, conditions
and overall administration of such plans and arrangements. Executive will be entitled to incentive compensation and bonuses as
provided in any plan of the Bank or the Company in which Executive is eligible to participate.
Nothing paid to Executive under any such plan or arrangement will be deemed to be in lieu
of other compensation to which Executive is entitled under this Agreement.

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(c)            In
addition to the Base Salary provided for by paragraph (a) of this Section 3, the Bank or the Company shall pay or reimburse
Executive for all reasonable travel and other reasonable expenses incurred by Executive performing her obligations under this
Agreement and may provide such additional compensation in such form and such amounts as the Board may from time to time determine.
The Bank shall reimburse Executive for her ordinary and necessary business expenses, including, without limitation,
fees for memberships in such clubs and organizations as Executive and the Board shall mutually
agree are necessary and appropriate for business purposes, and
travel and entertainment expenses, incurred in connection with the performance of her duties under this Agreement, upon presentation
to the Bank of an itemized account of such expenses in such form as the Bank may reasonably require. All reimbursements shall
be paid promptly by the Bank and in any event no later
than March 15 of the year immediately following the year in which the expense was incurred.

 

4.            PAYMENTS
TO EXECUTIVE UPON AN EVENT OF TERMINATION.

 

(a)            Upon
the occurrence of an Event of Termination (as herein defined) during Executive’s
term of employment under this Agreement, the provisions of this section shall apply. As used in this Agreement, an “Event
of Termination” shall mean and include any one or
more of the following: (i) the termination by the Bank of Executive’s
full-time employment hereunder for any reason other than a termination for Cause, as
defined in Section 8 hereof, or a termination upon
Retirement as defined in Section 7 hereof, or a termination
for Disability as set forth in Section 6(a) hereof; and
(ii) to the extent permitted under Code Section 409A, Executive’s resignation from the Bank’s
employ for “Good Reason.”
Good Reason shall mean any of the following: (A) failure to elect or reelect or to appoint
or reappoint Executive to Executive Position, unless consented
to by Executive, (B) a material change in Executive’s
function, duties, or responsibilities, which change would
cause Executive’s position to become one of lesser responsibility, importance,
or scope from the position and attributes thereof described in Sections 1 and 2 above, to
which Executive has not agreed in writing (and any such material change shall be deemed a continuing breach of this Agreement),
(C) a relocation of Executive’s
principal place of employment to a location that is more
than 25 miles from the location of the Bank’s principal executive offices as of the date of this Agreement,
or a material reduction in Base Salary (except for any reduction that is part of an employee-wide
reduction in pay or benefits), or (D) material breach
of this Agreement by the Bank. Upon the occurrence of any event described in clauses (ii) (A),
(B), (C), or (D) above,
Executive shall have the right to elect to terminate her employment under this Agreement by resignation within ninety (90) days)
after the event giving rise to said right to elect, which
termination by Executive shall be an Event of Termination. The Bank shall have at least (30) days to remedy any condition set
forth in clause (ii) (A) through (D), provided, however,
that the Bank shall be entitled to waive such period and make an immediate payment hereunder. If the Bank remedies the condition
within such thirty (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 thirty (30) day cure period, then
Executive may deliver a Notice of Termination, as defined
in Section 9(c) below, for Good Reason at any
time within sixty (60) days following the expiration of such cure period. No payments or benefits shall be due to Executive under
this Agreement upon the termination of Executive’s
employment except as provided in Section 4 or 5 hereof.

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(b)            Upon
the occurrence of an Event of Termination, the Bank shall pay Executive, or,
in the event of her subsequent death, her beneficiary or beneficiaries, or her estate,
as the case may be, as severance pay or liquidated damages,
or both, a lump sum cash amount equal to one and one-half times the sum of (A) the highest
annual rate of Base Salary paid to Executive at any time under the Agreement, and (B) the greater of (x) the
average annual cash bonus paid to Executive with respect to the three completed fiscal years prior to the Event of Termination,
or (y) the cash bonus paid to Executive with respect to the fiscal year
ended prior to the Event of Termination. Such payments shall not be reduced in the event Executive obtains other employment following
termination of employment, and shall be payable within
thirty (30) days following the Executive’s Event
of Termination. Notwithstanding the foregoing, in the
event the Executive is a Specified Employee (as defined herein), then,
solely, to the extent required to avoid penalties under Code Section 409A,
the Executive’s
payment under this Section 4(b) shall be delayed
until the first day of the seventh month following the Executive’s
Event of Termination. A “Specified
Employee” shall be interpreted to comply with Code
section 409A and shall mean a key employee within the meaning of Code Section 416(i) (without regard to paragraph 5
thereof) but an individual shall be a “Specified
Employee” only if the Bank or Company is or becomes
a publicly traded company.

 

(c)            Upon
the occurrence of an Event of Termination, the Bank will provide at the Bank’s
expense, life insurance and non-taxable medical and dental
coverage substantially comparable, as reasonably or customarily
available, to the coverage maintained by the Bank for
Executive prior to her termination, except to the extent
such coverage may be changed in its application to all Bank employees. Such coverage shall cease 18 months following the Event
of Termination. Notwithstanding the foregoing, if applicable law (including, but not limited to, laws prohibiting discriminating
in favor of highly compensated employees), or, if participation by the Executive is not permitted under the terms of the applicable
health plans, or if providing such benefits would subject the Bank to penalties, then the Bank shall pay the Executive a cash
lump sum payment reasonably estimated to be equal to the cost of such non-taxable life, medical and dental insurance, with such
payment to be made by lump sum within thirty (30) business days of the Event of Termination, or if later, the date on which the
Bank determines that such insurance coverage (or the remainder of such insurance coverage) cannot be provided for the foregoing
reasons.

 

(d)            Upon
the occurrence of
an Event of Termination,
any non-vested
stock options granted to Executive under any stock option plan or restricted stock plan of the Bank will fully vest.

 

(e)            For
purposes of this Agreement, “Event of Termination”
as used herein shall mean
“Separation from Service”
as defined in Code Section 409A and the Treasury Regulations promulgated there under,
such that the Bank and Executive
reasonably anticipate that the level of bona fide services
Executive would perform after termination would permanently
decrease to a level that is less than 50% of the average level of bona fide services performed
(whether as an employee or an independent contractor) over
the immediately preceding 36-month period.

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5.            CHANGE
IN CONTROL.

 

(a)           “Change
in Control” shall mean any of the following:

 

(1)            “Change
in Control” shall mean (i) a change in the
ownership of the Bank or Company, (ii) a change in
the effective control of the Bank or Company, or (iii) a change in the ownership of a substantial portion of the assets of
the Bank or Company, as described below.

 

(2)            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 Final Regulations section 1.409A- 3(i)(5)(v)(B)),
acquires ownership of stock of the Bank or Company 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.
For these purposes, a
change in ownership will not be deemed to have occurred if no stock of the Bank or Company is outstanding.

 

(3)            A
change in the effective control of the Bank or Company occurs on the date that either (i) any one person,
or more than one person acting as a group (as defined in Final Regulations section 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 Bank or Company possessing 30 percent or more of the total voting power of the stock of such Bank or
Company, or (ii) a majority of the members of the
Bank’s or Company’s board of directors is
replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of
the Bank’s or Company’s
board of directors prior to the date of the appointment
or election, provided that this subsection
“(ii)”
is inapplicable where
a majority shareholder of the Bank or Company is another corporation.

 

(4)            A
change in a substantial portion of the Bank’s or Company’s
assets occurs on the date that any one person or more than one person acting as a group (as defined in Final Regulations
section 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 Bank
or Company that have a total gross fair market value equal to or more than 40 percent of the total gross fair market value of
(i) all of the assets of the Bank or Company, or
(ii) 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 Final Regulations section 1.409A-3(i)(5), except
to the extent that such final regulations are superseded by subsequent guidance.

 

(b)           If
any of the events described in Section 5(a) hereof constituting a Change in Control shall have occurred
or the Board has determined that a Change in Control has occurred,
Executive shall be
entitled to the benefits provided in paragraphs (c) and (d) of this Section 5 regardless of whether he has terminated
employment in connection with the Change in Control.

 

(c)           Upon
the occurrence of a Change in Control, Executive, or,
in the event of her death following a Change in Control, her
beneficiary or beneficiaries, or her estate, as the case
may be, shall receive as severance pay or liquidated damages,
or both, an amount equal to three times the highest annual
rate of Base Salary paid to Executive at any time under the Agreement or Prior Agreement,
and three times the highest rate of cash bonus awarded to Executive
during the prior three years, which shall be paid in a
lump sum distribution on the effective date of the Change in Control. In addition, upon the occurrence of a termination
of employment (which must constitute a “Separation from Service” as defined in Code Section 409A and the Treasury
Regulations promulgated thereunder) on or after a Change in Control, the Bank will provide at the Bank’s expense, life insurance
and non-taxable medical and dental coverage substantially comparable, as reasonably or customarily available, to the coverage
maintained by the Bank for Executive prior to his termination, except to the extent such coverage may be changed in its application
to all Bank employees. Such coverage shall cease 36 months after the date of such termination of employment. Notwithstanding the
foregoing, if applicable law (including, but not limited to, laws prohibiting discriminating in favor of highly compensated employees),
or, if participation by the Executive is not permitted under the terms of the applicable health plans, or if providing such benefits
would subject the Bank to penalties, then the Bank shall pay the Executive a cash lump sum payment reasonably estimated to be
equal to the cost of such non-taxable life, medical and dental insurance, with such payment to be made by lump sum on the date
of termination of employment, or if later, the date on which the Bank determines that such insurance coverage (or the remainder
of such insurance coverage) cannot be provided for the foregoing reasons.

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(d)           If
the Executive is entitled to payments and benefits under this Section 5(c), the Executive will not be entitled to payments
and benefits under Section 4 of this Agreement.

 

(e)           Upon
the occurrence of a Change in Control, any non-vested
stock options granted to Executive under any stock option plan or restricted stock plan of the Bank will fully vest.

 

6.            TERMINATION
FOR DISABILITY OR DEATH.

 

(a)            Termination
of Executive’s employment based on “Disability”
shall be construed to comply with Code section 409A and shall be deemed to have occurred if
(i) the Executive is unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death,
or last for a continuous period of not less than 12 months; (ii) by reason of any medically
determinable physical or mental impairment which can be expected to result in death, or
last for a continuous period of not less than 12 months, the
Executive is receiving income replacement benefits for
a period of not less than three months under an accident and health plan covering employees of the Bank or Company;
or (iii) the Executive is determined to be totally disabled by the Social Security Administration.
The provisions of paragraph 6(b) and (c) shall apply upon the termination of the Executive’s
employment for Disability.

 

(b)            The
Bank will pay Executive, as Disability pay, a bi-weekly
payment equal to seventy-five percent (75%) of Executive’s
bi-weekly rate of Base Salary commencing on the date the Executive is determined to be Disabled.
These Disability payments will be paid bi-weekly and will end on the earlier (i) the
date Executive returns to the full-time employment of the Bank in the same capacity as he
was employed prior to her termination for Disability; (ii) Executive’s
full-time employment by another employer; (iii) Executive
attains the age of 65; or (iv) Executive’s
death. The Disability pay shall be reduced by the amount, if any, paid
to Executive under any plan of the Bank or the Company providing disability benefits to Executive.

 

(c)            The
Bank will cause to be continued life insurance and non-taxable medical and dental coverage
substantially comparable,
as reasonable or customarily available, to
the coverage maintained by the Bank for Executive prior to her termination for Disability, except to the extent
such coverage may be changed in its application to all Bank employees or not available on an individual basis to an employee terminated
for Disability. This coverage shall cease upon the earlier
of (i) the date Executive returns to the full-time employment of the Bank in the same capacity as he was employed prior to
her termination for Disability; (ii) Executive’s
full-time employment by another employer; (iii) Executive attaining the age of 65; or (iv) Executive’s death.

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

 

7.            TERMINATION
UPON RETIREMENT.

 

Termination of Executive’s
employment based on “Retirement” shall mean termination of Executive’s employment at age 65 or in accordance
with any retirement policy established by the Board with Executive’s consent with respect to him. Upon termination of Executive
based on Retirement, no amounts or benefits shall be due to the Executive under this Agreement, and Executive shall be entitled
to all benefits under any retirement plan of the Bank and other plans to which Executive is a party.

 

8.            TERMINATION
FOR CAUSE.

 

The
term “Termination for Cause”
shall mean termination because of Executive’s
personal dishonesty, incompetence,
willful misconduct, any breach of fiduciary duty involving personal profit,
intentional failure to perform stated duties, willful violation of any law,
rule, or regulation (other than traffic violations or similar offenses) or final cease-and-desist
order, or material breach of any provision of this Agreement. Executive’s
employment shall not be terminated in accordance with this paragraph for any act or action or failure to act which is undertaken
or omitted in accordance with a resolution of the Board or upon advice of the Bank’s counsel. Notwithstanding the foregoing,
Executive shall not be deemed to have been Terminated for Cause unless and until there shall
have been delivered to him a copy of a resolution duly adopted by the affirmative vote of not less than a majority of the members
of the Board at a meeting of the Board called and held for that purpose (after reasonable notice to Executive and an opportunity
for him, together with counsel,
to be heard before the Board), finding
that in the good faith opinion of the Board, Executive
was guilty of conduct justifying
Termination for Cause and specifying the particulars
thereof in detail. Executive shall not have the right to receive compensation or other benefits for any period after Termination
for Cause. Any non-vested stock options granted to Executive under any stock option plan of the Bank, the Company or any subsidiary
or affiliate thereof, shall become null and void effective
upon Executive’s receipt of Notice of Termination
for Cause pursuant to Section 9 hereof, and shall
not be exercisable by Executive at any time subsequent to such Termination for Cause (unless it is determined in arbitration that
grounds for Termination for Cause did not exist, in which event all terms of the options as of the date of termination shall apply,
and any time periods for exercising such options shall commence from the date of resolution in arbitration).

 

9.            NOTICE.

 

(a)            Any
purported termination by the Bank for Cause shall be communicated by Notice of Termination to Executive. If,
within 30 days after any Notice of Termination for Cause is given, Executive notifies the
Bank that a dispute exists concerning the termination, the parties shall promptly proceed to arbitration. Notwithstanding the
pendency of any such dispute, the Bank may discontinue to pay Executive compensation until the dispute is finally resolved in
accordance with this Agreement. If it is determined that Executive is entitled to compensation and benefits under Section 4
or 5 of this Agreement, the payment of such compensation and benefits by the Bank shall commence immediately following the date
of resolution by arbitration, with interest due Executive on the cash amount that would have been paid pending arbitration (at
the prime rate as published in The Wall Street Journal from time to time).

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(b)            Any
other purported termination by the Bank or by Executive shall be communicated by a Notice of Termination to the other party. If,
within 30 days after any Notice of Termination is given, the
party receiving such Notice of Termination notifies the other party that a dispute exists concerning the termination, the parties
shall promptly proceed to arbitration as provided in Section 19 of this Agreement. Notwithstanding the pendency of any such
dispute, the Bank shall continue to pay Executive her Base
Salary, and other compensation and benefits in effect
when the notice giving rise to the dispute was given (except as to termination of Executive for Cause). In the event the voluntary
termination by Executive of her employment is disputed by the Bank, and
if it is determined in arbitration that Executive is not entitled to termination benefits pursuant to this Agreement, he shall
return all cash payments made to him pending resolution by arbitration, with
interest thereon at the prime rate as published in The Wall Street
Journal from time
to time if it is determined in arbitration that Executive ‘s
voluntary termination of employment was not taken in good faith and not in the reasonable belief that grounds existed for her
voluntary termination.

 

(c)            For
purposes of this Agreement, a “Notice of Termination” shall mean a written notice which shall indicate the specific
termination provision in this Agreement relied upon 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 and “Date of Termination”
shall mean the date of the Notice of Termination.

 

10.          NON-COMPETITION
AND POST-TERMINATION OBLIGATIONS.

 

(a)            All
payments and benefits to Executive under this Agreement shall be subject to Executive’s
compliance with paragraph (b), (c) and (d) of
this Section 10.

 

(b)            Executive
shall, upon reasonable notice, furnish such information
and assistance to the Bank as may reasonably be required by the Bank in connection with any litigation in which it or any of its
subsidiaries or affiliates is, or may become, a party; provided, however, that Executive shall not be required to provide information
or assistance with respect to any litigation between the Executive and the Bank or any of its subsidiaries or affiliates.

 

(c)            Executive
recognizes and acknowledges that the knowledge of the business activities and plans for business activities of the Bank, the Company
and affiliates thereof, as it may exist from time to time,
is a valuable, special and unique asset of the business
of the Employers. Executive will not, during or after
the term of her employment, disclose any knowledge of the past, present,
planned or considered business activities of the Employers or affiliates thereof to any person,
firm, corporation, or other entity for any reason or purpose whatsoever (except for such disclosure as may be required to be provided
to either the Office of the Comptroller of the Currency (“OCC”)
or the Board of Governors of the Federal Reserve System (together, the “Regulator”).
Notwithstanding the foregoing, Executive
may disclose any knowledge of banking, financial and/or
economic principles, concepts or ideas which are not solely and exclusively derived from the business plans and activities of
the Bank, and Executive may disclose any information regarding the Bank which is otherwise publicly available or which Executive
is otherwise legally required to disclose. In the event of a breach or threatened breach by Executive of the provisions of this
Section 10, the Bank and the Company will be entitled
to an injunction restraining Executive from disclosing, in whole or in part, her
knowledge of the past, present, planned or considered
business activities of the Bank or the Company or any of their affiliates, or from rendering any services to any person,
firm, corporation,
other entity to whom such knowledge, in whole or in part,
has been disclosed or is threatened to be disclosed. Nothing herein will be construed as prohibiting
the Bank and the Company from pursuing any other remedies available to them for such breach or threatened breach,
including the recovery of damages from Executive.

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(d)            Upon
any termination of Executive’s employment hereunder pursuant to Section 4 of this Agreement, Executive agrees not to
compete with the Bank and the Company and any of their subsidiaries for a period of one year following such termination in any
city, town or county
in which the Bank has an office or has filed an application for regulatory approval to establish
an office, determined as of the effective date of such
termination, except as agreed to pursuant to a resolution duly adopted by the Board. Executive agrees that during such period
and within said cities, towns and counties, Executive shall not work for or advise, consult or otherwise serve with,
directly or indirectly, any entity whose business materially competes with the depository,
lending or other business activities of the Bank. The
parties hereto, recognizing that irreparable injury will result to the Bank, its
business and property in the event of Executive’s breach of this Section 10(d) agree that in the event of any
such breach by Executive, the Bank will be entitled,
in addition to any other remedies and damages available,
to an injunction to restrain the violation hereof by Executive,
Executive’s
partners, agents, servants,
employers, employees and all persons acting for or with Executive. Executive represents and
admits that Executive’s experience and capabilities
are such that Executive can obtain employment in a business engaged in other lines and/or
of a different nature than the Bank, and that the enforcement of a remedy by way of injunction will not prevent Executive from
earning a livelihood. Nothing herein will be construed as prohibiting the Bank and the Company from pursuing any other remedies
available to them for such breach or threatened breach, including the recovery of damages from Executive.

 

11.          SOURCE
OF PAYMENTS.

 

All
payments provided in this Agreement shall be timely paid in cash or check from the general funds of the Bank. The Company,
however, guarantees payment and provision of all amounts and benefits due hereunder to Executive,
and if such amounts and benefits due from the Bank are not timely paid or provided by the Bank,
such amounts and benefits shall be paid or provided by the Company.

 

12.          EFFECT
ON PRIOR AGREEMENTS AND EXISTING BENEFITS PLANS.

 

This
Agreement contains the entire understanding between the parties hereto and supersedes any prior employment agreement between the
Bank or any predecessor of the Bank and Executive, including the Prior Agreement, except that this Agreement shall not affect
or operate to reduce any benefit or compensation inuring to Executive of a kind elsewhere provided. No provision of this Agreement
shall be interpreted to mean that Executive is subject to receiving fewer benefits than those available to him without reference
to this Agreement.

 

13.         NO
ATTACHMENT; BINDING ON SUCCESSORS.

 

(a)            Except
as required by law, no right to receive payments under this Agreement shall be subject to anticipation, commutation,
alienation, sale, assignment, encumbrance,
charge, pledge, or
hypothecation, or to execution, attachment, levy, or similar
process or assignment by operation of law, and any attempt, voluntary or involuntary, to effect any such action shall be null,
void, and of no effect.

 

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

    9

     

    

 

14.         MODIFICATION
AND WAIVER.

 

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

 

(b)            No
term or condition of this Agreement shall be deemed to have been waived, nor shall there be any estoppel against the enforcement
of any provision of this Agreement, except by written instrument of the party charged with such waiver or estoppel. No such written
waiver shall be deemed a continuing waiver unless specifically stated therein, and
each such waiver shall operate only as to the specific term or condition waived and shall not constitute a waiver of such term
or condition for the future as to any act other than that specifically waived.

 

15.         REQUIRED
PROVISIONS.

 

(a)            The
Bank may terminate Executive’s employment at any
time, but any termination by the Bank’s Board other
than Termination for Cause as defined in Section 8 hereof 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
for any period after Termination for Cause.

 

(b)            If
Executive is suspended from office and/or temporarily prohibited from participating in the conduct of the Bank’s
affairs by a
notice served under Section 8(e)(3) [12 USC §1818(e)(3)] or 8(g)(l) [12 USC §1818(g)(l)] of the Federal
Deposit Insurance Act, the Bank’s
obligations under this Agreement shall be suspended as of the date of service, unless
stayed by appropriate proceedings. If the charges in the notice are dismissed, the Bank may in its discretion (i) pay Executive
all or part of the compensation withheld while its contract obligations were suspended and (ii) reinstate (in whole or in
part) any of its obligations which were suspended.

 

(c)            If
Executive is removed and/or permanently prohibited from
participating in the conduct of the Bank’s affairs
by an order issued under Section 8(e)(4) [12 USC §1818(e)(4)] or 8(g)(l) [12 USC §1818(g)(l)] of the
Federal Deposit Insurance Act, all obligations of the Bank under this Agreement shall terminate as of the effective date of the
order, but vested
rights of the contracting parties shall not be affected.

 

(d)            If
the Bank is in default as defined in Section 3(x)(l) [12 USC §1813(x)(l)] of the Federal Deposit Insurance Act,
all obligations of the Bank under this Agreement shall terminate as of the date of default,
but this paragraph shall not affect any vested rights of the contracting parties.

 

(e)            All
obligations under this Agreement shall be terminated, except
to the extent determined that continuation of the contract is necessary for the continued operation of the Bank,
(i) by the Regulator,
at the time the FDIC enters into an agreement to provide assistance to or on behalf of the Bank under the authority contained
in Section 13(c) [12 USC §1823(c)] of the Federal Deposit Insurance Act; or
(ii) by the Director or her or her designee at the time the Director or her or her designee approves a supervisory merger
to resolve problems related to operation of the Bank or when the Bank is determined by the
Director to be in an unsafe or unsound condition.
Any rights of the parties that have already vested, however,
shall not be affected by such action.

 

(f)            Notwithstanding
anything herein contained to the contrary, any payments
to 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, 12 U.S.C.
Section 1828(k), and the regulations promulgated
thereunder in 12 C.F.R. Part 359.

    10

     

    

 

16.         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.

 

17.         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.

 

18.         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.

 

19.         ARBITRATION.

 

Any
dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration, conducted
before a panel of three arbitrators sitting in a location selected by the Executive within twenty-five miles of Seneca Falls,
New York in accordance with the rules of the American Arbitration Association then in effect. Judgment may be entered on
the arbitrator’s award in any court having jurisdiction; provided, however, that Executive shall be entitled to seek specific
performance of her right to be paid until the Date of Termination during the pendency of any dispute or controversy arising under
or in connection with this Agreement.

 

20.         PAYMENT
OF LEGAL FEES.

 

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 settled by Executive and the Bank
or resolved in Executive’s favor, and that such reimbursement shall occur as soon as practicable but not later than two
and one-half months after the dispute is settled or resolved in Executive’s favor.

 

21.         INDEMNIFICATION.

 

The
Bank shall provide Executive (including her heirs, executors and administrators) with coverage under a standard directors’
and officers’ liability insurance policy at its
expense, and shall indemnify Executive (and her heirs, executors and administrators) for the term of the Agreement and for a period
of six years thereafter to the fullest extent permitted under applicable law against all expenses and liabilities reasonably incurred
by him in connection with or arising out of any action, suit or proceeding in which he may be involved by reason
of her having been a director or officer of the Bank (whether or not he continues to be a
director or officer at the time of incurring such expenses or liabilities), such expenses and liabilities to include, but not
be limited to, judgments, court costs and attorneys’
fees and the cost of reasonable settlements (such settlements must be approved by the Board),
provided, however, the Bank shall not be required to indemnify or reimburse Executive for
legal expenses or liabilities incurred in connection with an action, suit or proceeding arising from any illegal or fraudulent
act committed by Executive. Any such indemnification shall be made consistent with Section 18(k) of the Federal Deposit
Insurance Act, 12 U.S.C. §l
828(k), and the regulations issued thereunder in 12 C.F.R.
Part 359.

    11

     

    

  

22.         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:

 

	To the Company:	Generations
        Bancorp NY, Inc.

        20 East Bayard
        St

        Seneca Falls,
        New York 13148

	 	 
	To the Bank:

         
	Generations Bank

        20 East Bayard
        St

        Seneca Falls,
        New York 13148

	 	 
	To Executive:

         
	Shelley Tafel

        At the address
        last appearing on

        the personnel
        records of the Bank

 

23.         EFFECTIVENESS
AND TERMINATION OF PRIOR AGREEMENT.

 

(a)            Effectiveness.
Notwithstanding anything to the contrary contained herein, this Agreement shall be subject to the consummation of the
Second-Step Conversion, and shall become effective as of the date of the consummation of the Second-Step Conversion and
related Offering. In the event the Second-Step Conversion and/or Offering does not occur for any reason, or in the event
Executive is not an employee of the Bank as of the Effective Date, this Agreement shall automatically terminate and become
null and void.

 

(b)            Termination
of Original Agreement. The Original Agreement shall remain in full force and effect until the Effective Date. Thereafter,
on the Effective Date, Executive and the Bank hereby agree that the Original Agreement shall be terminated without any further
action of any of the parties thereto. Executive hereby acknowledges and agrees that Executive has no contractual rights to any
payments or benefits under the Original Agreement as of the Effective Date.

    12

     

    

 

SIGNATURES

 

IN
WITNESS WHEREOF, the Company and the Bank have caused this Agreement to be executed by their duly authorized representatives,
and Executive has signed this Agreement, on the day and
date first above written. The Company has become a party
to this Agreement for the sole purpose of binding itself to the duties and obligations set forth in Section 11 hereof.

 

		 	GENERATIONS BANCORP NY, INC. 
	 	 	 
	 	 	 
	August 31, 2020	 	 	By:	/s/
    James Tarantino
	Date	 	 
	 	 	 
		 	GENERATIONS BANK 
	 	 	 
	 	 	 
	August 31, 2020	 	 	By:	/s/
    James Tarantino
	Date	 	 
	 	 	 
		 	EXECUTIVE 
	 	 	 
	 	 	 
	August 31, 2020	 	 	/s/
    Shelley Tafel
	Date	 	Shelley Tafel
		 	Chief Financial OfficerExhibit 10.3

 

GENERATIONS BANK

AMENDED AND RESTATED

DIRECTORS RETIREMENT PLAN

 

Generations Bank hereby
adopts this Generations Bank Amended and Restated Directors Retirement Plan (the “Plan”), originally adopted effective
January 1, 2012, for the benefit of its non-employee members of the Board of Directors of Generations Bank.

 

This Plan is an unfunded
arrangement maintained for the purpose of providing deferred compensation and is intended to be exempt from the participation,
vesting, funding, and fiduciary requirements set forth in Title I of the Employee Retirement Income Security Act of 1974, as amended.

 

Article 1 - Definitions

 

1.1          Account

 

The sum of all the
bookkeeping sub-accounts as may be established for each Participant as provided in Section 5.1 hereof.

 

1.2          Administrator

 

The individual acting
as chief financial officer of the Bank or such other individual as may be appointed by the Bank. The Administrator shall serve
as the agent for the Bank with respect to the Trust.

 

1.3          Bank

 

Generations Bank and its affiliates or subsidiaries.

 

1.4          Bank
Supplemental Contribution

 

A contribution made
by the Bank that is credited to one or more Participant’s Accounts in accordance with the terms of Section 3.4 hereof.

 

1.5          Board

 

The Board of Directors of the Bank.

 

1.6          Change-in-Control

 

Provided that such
term shall be interpreted within the meaning of regulations promulgated under Code Section 409A, a “Change-in-Control”
of the Bank (which, for purpose of this Section 1.6, Bank shall mean Generations Bank but not any of its affiliates or subsidiaries)
shall mean the first to occur of any of the following:

 

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

 

(b)            the
date that any one person or persons acting as a group acquires (or has acquired during the 12-month period ending on the date of
the most recent acquisition by such person or persons) ownership of the stock of the Bank possessing thirty percent (30%) or more
of the total voting power of the stock of the Bank;

 

    1 

     

    

 

(c)            the
date that any one person or persons acting as a group acquires (or has acquired during the 12-month period ending on the date of
the most recent acquisition by such person or persons) assets from the Bank that have a total gross fair market value equal to
or more than forty percent (40%) of the total gross fair market value of all of the assets of the Bank immediately prior to such
acquisition; or

 

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

 

(e)            Notwithstanding
anything herein to the contrary, a minority stock offering or mutual to stock conversion of the Bank’s mid-tier mutual holding
company to fully converted stock holding company shall not be considered a “Change in Control” of the Bank or the mid-tier
mutual holding company.

 

1.7          Change-in-Control
Contribution

 

A contribution made by the Bank that is
credited to one or more Participant’s Accounts in accordance with the terms of Section 3.5 hereof.

 

1.8          Code

 

The Internal Revenue Code of 1986, as amended.

 

1.9          Compensation

 

The Participant’s Directors’
fees including but not limited to annual retainers and meeting fees and other remuneration from the Bank as may be included by
the Administrator.

 

1.10        Deferrals

 

The portion of Compensation
that a Participant elects to defer in accordance with Section 3.1 hereof.

 

1.11        Deferral
Election

 

The separate agreement,
submitted to the Administrator, by which an Eligible Director agrees to participate in the Plan and make Deferrals thereto.

 

1.12        Disability

 

Provided that such
term shall be interpreted within the meaning of regulations promulgated under Code Section 409A, a Participant shall be considered
to have incurred a Disability if: (i) the Participant is unable to engage in any substantial gainful activity by reason of
any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for
a continuous period of not less than 12 months; (ii) the Participant is, by reason of any medically determinable physical
or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than
12 months, receiving income replacement benefits for a period of not less than 3 months under an accident and health plan covering
Directors of the Participant’s Bank; or (iii) determined to be totally disabled by the Social Security Administration.

 

    2 

     

    

 

1.13        Effective
Date

 

The Plan, originally
adopted effective January 1, 2012, is hereby amended and restated effective July 29, 2019.

 

1.14        Eligible
Director

 

A Director shall be
considered an Eligible Director if such Director is a member of the Board and is listed as eligible on Exhibit A.

 

1.15        Investment
Fund

 

Each investment(s) which
serves as a means to measure value, increases or decreases with respect to a Participant’s Accounts.

 

1.16        Participant

 

An Eligible Director who is a Participant
as provided in Article 2.

 

1.17        Plan
Year

 

The Plan Year is January 1
through December 31.

 

1.18        Separation
from Service

 

A Participant shall
incur a Separation from Service if the Participant incurs a separation from the Bank in such a manner as to constitute a “separation
from service” as defined under Code section 409A.

 

1.19        Service
Recipient

 

Provided that such
term shall be interpreted within the meaning of regulations promulgated under Code Section 409A, Service Recipient shall mean
the Bank.

 

1.20        Trust

 

The agreement between
the Bank and the Trustee under which the assets of the Plan are held, administered and managed, which shall conform to the terms
of Rev. Proc. 92-64.

 

1.21        Trustee

 

First County Bank,
or such other successor, that shall become trustee at the discretion of the Bank. The Trustee may not be changed after the date
of a Change-in-Control.

 

Article 2 - Participation

 

2.1          Commencement
of Participation

 

Each Eligible Director
shall become a Participant at the earlier of the date on which his or her Deferral Election first becomes effective or the date
on which a Bank Supplemental or Bank Discretionary Contribution is first credited to his or her Account which is listed for Eligible
Directors on Exhibit A.

 

    3 

     

    

 

2.2           Loss
of Eligible Director Status

 

A Participant who is
no longer an Eligible Director shall not be permitted to submit a Deferral Election and all Deferrals for such Participant shall
cease as of the end of the Plan Year in which such Participant is determined to no longer be an Eligible Director. Amounts credited
to the Account of a Participant who is no longer an Eligible Director shall continue to be held pursuant to the terms of the Plan
and shall be distributed as provided in Article 6.

 

Article 3 - Contributions

 

3.1           Deferral
Elections - General

 

The Administrator,
in its sole and absolute discretion, shall determine on a Plan Year to Plan Year basis, whether a Deferral Election may be submitted
by a Participant. A Participant's Deferral Election submission in one Plan Year shall not require the Administrator to provide
for the submission of a Deferral Election in any other Plan Year. In the event the Administrator provides for the submission of
a Deferral Election by a Participant, such Deferral Election will allow a Participant to elect to defer a portion of his or her
Compensation subject to the restrictions as provided for within the Plan, as contained herein. A Deferral Election for a Plan Year
is irrevocable for that applicable Plan Year. Such amounts deferred under the Plan shall not be made available to such Participant,
except as provided in Article 6, and shall reduce such Participant’s Compensation from the Bank in accordance with the
provisions of the applicable Deferral Election; provided, however, that all such amounts shall be subject to the rights of the
general creditors of the Bank as provided in Article 8. The Deferral Election, in addition to the requirements set forth below,
must designate: (i) the amount of Compensation to be deferred, and (ii) the form of the distribution.

 

3.2           Time
of Election

 

A Deferral Election shall be void if it
is not made in a timely manner as follows:

 

(a)            A
Deferral Election with respect to any Compensation must be submitted to the Administrator before the beginning of the calendar
year during which the amount to be deferred will be earned. As of December 31 of each calendar year, said Deferral Election
is irrevocable for the calendar year.

 

(b)            Notwithstanding
the foregoing and in the discretion of the Bank, in a year in which an Director is first eligible to participate, and provided
that such Director is not eligible to participate in any other similar account balance arrangement subject to Code Section 409A,
such Deferral Election shall be submitted within thirty (30) days after the date on which an Director is first eligible to participate,
and such Deferral Election shall apply to Compensation to be earned during the remainder of the calendar year after such election
is made.

 

    4 

     

    

 

3.3          Additional
Requirements

 

The Deferral Election,
subject to the limitations set forth in Sections 3.1 and 3.2 hereof, shall comply with the following additional requirements, or
as otherwise required by the Administrator in its sole discretion:

 

(a)            Deferrals
may be made in whole percentages or stated dollar amounts with such limitations as determined by the Administrator.

 

(b)            The
maximum amount that may be deferred each Plan Year is one-hundred percent (100%) of the Participant’s Compensation.

 

3.4          Bank
Supplemental Contribution

 

The Bank shall make
a Bank Supplemental Contribution to the Account of some or all of the Participants. The amount of the Bank Supplemental Contribution
shall be determined by the Bank based on the amounts stated on the attached Exhibit B. Such Bank Supplemental Contribution
shall be credited to the Participant’s Account.

 

3.5          Change-in-Control
Contribution

 

Upon a Change-in-Control,
the Bank shall make a Change-in-Control Contribution to the Plan in an amount equal to the present value of any remaining Bank
Supplemental Contribution stated on Exhibit B that have not yet been made to the Plan. The discount rate for the present value
calculation shall be determined by using an interest rate equal to 120% of the applicable federal rate, determined under Code Section 1274(d) and
compounded semiannually, for the month in which a Change-in-Control occurs.

 

3.6          Crediting
of Contribution

 

The Bank Supplemental
Contribution shall be credited to a Participant’s Account, and if applicable transferred to the Trust, at such time as the
Bank shall determine but no less frequently than annually. The Change-in-Control Contribution shall be credited to a Participant’s
Account no later than the date of the Change-in-Control.

 

Article 4 - Vesting

 

4.1          Vesting
of Deferrals

 

Each Participant is
one-hundred percent (100%) vested in all amounts credited to his or her Account, including amounts attributable to Deferrals and
any earning or losses on the investment of such Deferrals.

 

4.2          Vesting
of Bank Supplemental Contributions

 

Each Participant is
one-hundred percent (100%) vested in all amounts credited to his or her Account, including amounts attributable to Bank Supplemental
Contributions.

 

4.3         [Reserved]

 

4.4         [Reserved]

 

4.5         [Reserved]

 

    5 

     

    

 

Article 5 - Accounts

 

5.1          Accounts

 

The Administrator shall
establish and maintain a bookkeeping account in the name of each Participant. Each Participant’s Account shall be reduced
by any distributions made plus any federal and state tax withholding, and any social security withholding tax as may be required
by law.

 

5.2          Investments,
Gains and Losses

 

(a)            A
Participant may direct that his or her Account be valued as if they were invested in one or more Investment Funds as selected by
the Bank in multiples of one percent (1%). The Bank may from time to time, at the discretion of the Administrator, change the Investment
Funds for purposes of this Plan.

 

(b)            The
Administrator shall adjust the amounts credited to each Participant’s Account to reflect Deferrals, Bank Supplemental Contributions,
investment experience, distributions and any other appropriate adjustments. Such adjustments shall be made as frequently as is
administratively feasible.

 

(c)            A
Participant may change his or her selection of Investment Funds no more than four (4) times each Plan Year with respect to
his or her Account by filing a new election in accordance with procedures established by the Administrator. An election shall be
effective as soon as administratively feasible following the date the change is submitted on a form prescribed by the Administrator.

 

(d)            Notwithstanding
the Participant’s ability to designate the Investment Fund in which his or her Account shall be deemed invested, the Bank
shall have no obligation to invest any funds in accordance with the Participant’s election. Participants’ Accounts
shall merely be bookkeeping entries on the Bank’s books, and no Participant shall obtain any property right or interest in
any Investment Fund.

 

Article 6 - Distributions

 

6.1          Distributions
upon Separation from Service

 

Upon the Participant’s
Separation from Service, the Participant’s vested Account shall be distributed as soon as administratively feasible but no
later than thirty (30) days following the Participant’s Separation from Service. Distribution shall be made either in a lump-sum
payment or in substantially equal annual installments, as defined in Section 6.2 below, over a period of up to ten (10) years
as elected by the Participant at the time of his or her initial eligibility. If the Participant fails to properly designate the
form of the distribution, the Account shall be paid in ten (10) annual installments. A distribution will be delayed by six
months and one day only if required by Code Section 409A and the regulations thereunder.

 

    6 

     

    

 

6.2          Substantially
Equal Annual Installments

 

(a)            The
amount of the substantially equal payments shall be determined by multiplying the Participant’s Account or sub-account by
a fraction, the denominator of which in the first year of payment equals the number of years over which benefits are to be paid,
and the numerator of which is one (1). The amounts of the payments for each succeeding year shall be determined by multiplying
the Participant’s Account or sub-account as of the applicable anniversary of the payout by a fraction, the denominator of
which equals the number of remaining years over which benefits are to be paid, and the numerator of which is one (1). Installment
payments made pursuant to this Section 6.2 shall be made as soon as administratively feasible but no later than thirty (30)
days following the anniversary of the distribution event.

 

(b)            For
purposes of the Plan and pursuant to Code Section 409A and regulations thereunder, a series of annual installments from a
particular subaccount shall be considered a single payment.

 

6.3          Distributions
due to Disability

 

Upon a Participant’s
Disability, all amounts credited to his or her Account shall be paid to the Participant in a lump sum as soon as administratively
feasible but no later than sixty (60) days following the date of Disability.

 

6.4          Distributions
upon Death

 

Upon the death of a
Participant, all amounts credited to his or her Account shall be paid, as soon as administratively feasible but no later than thirty
(30) days following Participant’s date of death, to his or her beneficiary or beneficiaries, as determined under Article 7
hereof, in a lump sum.

 

6.5          Changes
to Distribution Elections

 

A Participant will
be permitted to elect to change the form or timing of the distribution of the balance of his or her one or more sub-accounts within
his or her Account to the extent permitted and in accordance with the requirements of Code Section 409A(a)(4)(C), including
the requirement that (i) a redeferral election may not take effect until at least twelve (12) months after such election is
filed with the Bank, (ii) an election to further defer a distribution must result in the first distribution subject to the
election being made at least five (5) years after the previously elected date of distribution, and (iii) any redeferral
election affecting a distribution at a fixed date must be filed with the Bank at least twelve (12) months before the first scheduled
payment under the previous fixed date distribution election. Once an Account begins distribution, no such changes to distributions
shall be permitted.

 

6.6          Separation
from Service for Cause

 

Notwithstanding anything
to the contrary contained herein, in the event the Participant has an involuntary Separation from Service for Cause, Participant
shall only receive the return of his or her Deferrals including the Participant’s share of any earnings or losses credited
on those Deferrals pursuant to Section 5.2. Upon a Participant’s Separation from Service for Cause, all amounts credited
to Participant’s Account amounts relating to Bank Supplemental Contributions and including the Participant’s share
of any earnings or losses credited on the foregoing pursuant to Section 5.2, above, shall be forfeited back to the Bank. For
purposes of this Plan, “Cause” shall mean (i) engaging in willful or grossly negligent misconduct that is materially
injurious to the Bank and/or affiliate, (ii) embezzlement or misappropriation of funds or property of the Bank and/or affiliate,
(iii) conviction of a felony (other than a traffic offense) or the entrance of a plea of guilty or nolo contendere to a felony,
(iv) conviction of any crime involving fraud, dishonesty or breach of trust or the entrance of a plea of guilty or nolo contendere
to such a crime, or (v) failure or refusal by the Participant to devote full business time and attention to the performance
of his or her duties and responsibilities if such breach has not been cured within fifteen (15) days after notice is given to the
Participant.

 

    7 

     

    

 

6.7          Distributions
upon a Change-in-Control

 

Notwithstanding any
distribution election to the contrary, if a Change-in-Control as defined in Section 1.6 occurs, then the remaining amount
of the Participant’s Account shall be paid to the Participant or his or her beneficiary in a single lump-sum payment as of
the date of the Change-in-Control.

 

Article 7 - Beneficiaries

 

7.1          Beneficiaries

 

Each Participant may
from time to time designate one or more persons (who may be any one or more members of such person’s family or other persons,
administrators, trusts, foundations or other entities) as his or her beneficiary under the Plan. Such designation shall be made
in a form prescribed by the Administrator. Each Participant may at any time and from time to time, change any previous beneficiary
designation, without notice to or consent of any previously designated beneficiary, by amending his or her previous designation
in a form prescribed by the Administrator. If the beneficiary does not survive the Participant (or is otherwise unavailable to
receive payment) or if no beneficiary is validly designated, then the amounts payable under this Plan shall be paid to the Participant’s
surviving spouse, or if no surviving spouse to the Participant’s estate. If more than one person is the beneficiary of a
deceased Participant, each such person shall receive a pro rata share of any death benefit payable unless otherwise designated
in the applicable form. If a beneficiary who is receiving benefits dies, all benefits that were payable to such beneficiary shall
then be payable to the estate of that beneficiary.

 

7.2          Lost
Beneficiary

 

All Participants and
beneficiaries shall have the obligation to keep the Administrator informed of their current address until such time as all benefits
due have been paid. If a Participant or beneficiary cannot be located by the Administrator exercising due diligence, then, in its
sole discretion, the Administrator may presume that the Participant or beneficiary is deceased for purposes of the Plan and all
unpaid amounts (net of due diligence expenses) owed to the Participant or beneficiary shall be paid accordingly or, if a beneficiary
cannot be so located, then such amounts may be forfeited. Any such presumption of death shall be final, conclusive and binding
on all parties.

 

    8 

     

    

 

Article 8 - Funding

 

8.1          Prohibition
against Funding

 

Should any investment
be acquired in connection with the liabilities assumed under this Plan, it is expressly understood and agreed that the Participants
and beneficiaries shall not have any right with respect to, or claim against, such assets nor shall any such purchase be construed
to create a trust of any kind or a fiduciary relationship between the Bank and the Participants, their beneficiaries or any other
person. Any such assets shall be and remain a part of the general, unpledged, unrestricted assets of the Bank, subject to the claims
of its general creditors. It is the express intention of the parties hereto that this arrangement shall be unfunded for tax purposes.
Each Participant and beneficiary shall be required to look to the provisions of this Plan and to the Bank itself for enforcement
of any and all benefits due under this Plan, and to the extent any such person acquires a right to receive payment under this Plan,
such right shall be no greater than the right of any unsecured general creditor of the Bank. The Bank or the Trust shall be designated
the owner and beneficiary of any investment acquired in connection with its obligation under this Plan.

 

8.2          Deposits
in Trust

 

Notwithstanding Section 8.1,
or any other provision of this Plan to the contrary, the Bank may deposit into the Trust any amounts it deems appropriate to pay
the benefits under this Plan. The amounts so deposited may include all contributions made pursuant to a Deferral Election by a
Participant and Bank Supplemental Contributions.

 

8.3          Withholding
of Director Compensation

 

The Administrator is
authorized to make any and all necessary arrangements with the Bank in order to withhold the Participant’s Deferrals under
Section 3.1 hereof from his or her Compensation. The Administrator shall determine the amount and timing of such withholding.

 

Article 9 - General Provisions

 

9.1          Administrator

 

(a)            The
Administrator is expressly empowered to limit the amount of Compensation that may be deferred; to deposit amounts into the Trust
in accordance with Section 8.2 hereof; to interpret the Plan, and to determine all questions arising in the administration,
interpretation and application of the Plan; to employ actuaries, accountants, counsel, and other persons it deems necessary in
connection with the administration of the Plan; to request any information from the Bank it deems necessary to determine whether
the Bank would be considered insolvent or subject to a proceeding in bankruptcy; and to take all other necessary and proper actions
to fulfill its duties as Administrator.

 

(b)            The
Administrator shall not be liable for any actions by it hereunder, unless due to its own negligence, willful misconduct or lack
of good faith.

 

(c)            The
Administrator shall be indemnified and saved harmless by the Bank from and against all personal liability to which it may be subject
by reason of any act done or omitted to be done in its official capacity as Administrator in good faith in the administration of
the Plan and Trust, including all expenses reasonably incurred in its defense in the event the Bank fails to provide such defense
upon the request of the Administrator. The Administrator is relieved of all responsibility in connection with its duties hereunder
to the fullest extent permitted by law, short of breach of duty to the beneficiaries.

 

    9 

     

    

 

9.2          No
Assignment

 

Benefits or payments
under this Plan shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance,
attachment, or garnishment by creditors of the Participant or the Participant’s beneficiary, whether voluntary or involuntary,
and any attempt to so anticipate, alienate, sell, transfer, assign, pledge, encumber, attach or garnish the same shall not be valid,
nor shall any such benefit or payment be in any way liable for or subject to the debts, contracts, liabilities, engagement or torts
of any Participant or beneficiary, or any other person entitled to such benefit or payment pursuant to the terms of this Plan,
except to such extent as may be required by law. If any Participant or beneficiary or any other person entitled to a benefit or
payment pursuant to the terms of this Plan becomes bankrupt or attempts to anticipate, alienate, sell, transfer, assign, pledge,
encumber, attach or garnish any benefit or payment under this Plan, in whole or in part, or if any attempt is made to subject any
such benefit or payment, in whole or in part, to the debts, contracts, liabilities, engagements or torts of the Participant or
beneficiary or any other person entitled to any such benefit or payment pursuant to the terms of this Plan, then such benefit or
payment, in the discretion of the Administrator, shall cease and terminate with respect to such Participant or beneficiary, or
any other such person.

 

9.3          Incompetence

 

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

 

9.4          Identity

 

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

 

9.5          Expenses

 

All expenses incurred
in the administration of the Plan, whether incurred by the Bank or the Plan, shall be paid by the Bank.

 

9.6          Insolvency

 

Should the Bank be
considered insolvent (as defined by the Trust), the Bank, through its Board and chief executive officer, shall give immediate written
notice of such to the Administrator of the Plan and the Trustee. Upon receipt of such notice, the Administrator or Trustee shall
cease to make any payments to Participants who were Directors of the Bank or their beneficiaries and shall hold any and all assets
attributable to the Bank for the benefit of the general creditors of the Bank.

 

    10 

     

    

 

9.7          Amendment
or Modification

 

The Bank may, at any
time, in its sole discretion, amend or modify the Plan in whole or in part, except that no such amendment or modification shall
have any retroactive effect to reduce any amounts allocated to a Participant’s Account, and provided that such amendment
or modification complies with Code Section 409A and related regulations thereunder. The Plan may not be amended or modified
after the date of a Change-in-Control except to comply with applicable law and Code Section 409A.

 

9.8          Plan
Termination

 

The Bank further reserves
the right to terminate the Plan in whole or in part, in the following manner, except that no such termination shall have any retroactive
effect to reduce any amounts allocated to a Participant’s Account, and provided that such amendment or modification complies
with Code Section 409A and related regulations thereunder:

 

(a)            The
Bank, in its sole discretion, may terminate the Plan and distribute all vested Participants’ Accounts no earlier than twelve
(12) calendar months from the date of the Plan termination and no later than twenty-four (24) calendar months from the date of
the Plan termination, provided however that all other similar arrangements are also terminated by the Bank for any affected Participant
and no other similar arrangements are adopted by the Bank for any affected Participant within a three (3) year period from
the date of termination; or

 

(b)            The
Bank may decide, in its sole discretion, to terminate the Plan in the event of a corporate dissolution taxed under Code Section 331,
or with the approval of a bankruptcy court, provided that the Participants vested Account balances are distributed to Participants
and are included in the Participants’ gross income in the latest of: (i) the calendar year in which the termination
occurs; (ii) the calendar year in which the amounts deferred are no longer subject to a substantial risk of forfeiture; or
(iii) the first calendar year in which payment is administratively practicable.

 

9.9          Construction

 

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

 

9.10        Governing
Law

 

This Plan shall be
governed by, construed and administered in accordance with Code Section 409A, and any other applicable federal law, provided,
however, that to the extent not preempted by federal law this Plan shall be governed by, construed and administered under the laws
of the State of New York, other than its laws respecting choice of law.

 

9.11        Severability

 

If any provision of
this Plan is held invalid or unenforceable, its invalidity or unenforceability shall not affect any other provision of this Plan
and this Plan shall be construed and enforced as if such provision had not been included therein. The Plan will be operated and
administered in accordance with Code Section 409A and the regulations thereunder notwithstanding anything in the Plan to the
contrary.

 

    11 

     

    

 

9.12        Headings

 

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

 

9.13        Terms

 

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

 

IN WITNESS WHEREOF,
Generations Bank has caused this instrument to be executed by its duly authorized officer, effective as of this 29th
day of July, 2019.

 

	 	Generations Bank
	 	 
	 	By:	/s/ Menzo D. Case
  
	 	 
	 	Title: President & CEO

 

    12 

     

    

 

Exhibit A — Eligible Directors

 

	Name	 	Date of Eligibility
	Dr. Herbert R. Holden	 	January 1, 2012
	Bradford M. Jones	 	January 1, 2012
	Robert E. Kernan, Jr.	 	January 1, 2012
	Gerald Macaluso	 	January 1, 2012
	Dr. Frank Nicchi	 	January 1, 2012
	August P. Sinicropi	 	January 1, 2012
	Vincent P. Sinicropi	 	January 1, 2012
	David Swenson	 	January 1, 2012
	Dr. Jose Acevedo	 	January 1, 2017
	Cynthia Aikman	 	January 1, 2018

 

    

     

    

 

Exhibit B — Contributions

 

The amount of the Bank Supplemental Contribution
for each Participant is stated below. This Bank Supplemental Contribution shall be made each year beginning the date shown in Exhibit A
for each Participant and end in the calendar year in which the Participant attains age seventy-five (75) as set forth below, assuming
the Participant has not had a Separation from Service with the Bank.

 

	Name	 	Annual Contribution	 	 	Year of Final Contribution
	Bradford M Jones	 	$	3,038.41	 	 	2026
	GeraldMacaluso	 	$	2,874.17	 	 	2026
	Dr. Frank Nicchi	 	$	2,874.17	 	 	2026
	August P. Sinicropi	 	$	2,780.44	 	 	2022
	Vincent P. Sinicropi	 	$	3,787.38	 	 	2029
	David Swenson	 	$	2,687.58	 	 	2020
	Dr. Jose Acevedo	 	$	3,952.62	 	 	2038
	Cynthia Aikman	 	$	4,026.93	 	 	2037

 

Eligible Directors, as shown on Exhibit A, who are not
a member of the Board as of the January 1, 2018, are excluded from Exhibit B.

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