Document:

BankFinancial FSB Employment Agreement with John G. Manos

 Exhibit 10.31 

BANKFINANCIAL, F.S.B. 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT 

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) is made effective as of May 6, 2008 (the
“Effective Date”), by and between BankFinancial, F.S.B. (the “Bank”), a federally chartered stock savings bank having its principal office at 21110 South Western Avenue, Olympia Fields, Illinois, and John
Manos (“Executive”). 
 WHEREAS, the Bank and the Executive have previously entered into an
Employment Agreement dated March 23, 2003 (the “Initial Agreement”); 
 WHEREAS, the Board of
Directors of the Bank (the “Board”) considers the continued availability of Executive’s services to be important to the successful management and conduct of the Bank’s business, and wishes to assure the continued
availability of Executive’s full-time services to the Bank as provided in this Agreement; and 
 WHEREAS, Executive
is willing to continue to serve in the employ of the Bank on a full-time basis on the terms and conditions set forth herein. 

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

	1.	POSITION AND RESPONSIBILITIES. 

(a) Position. During the period of employment established by Section 2(a) of this Agreement (the “Employment
Period”), Executive agrees to serve, if appointed to serve, as a Regional President of the Bank. 
 (b) Duties
and Responsibilities. Executive shall have and exercise the duties, responsibilities, privileges, powers and authority commensurate with such position as the Board or the Chief Executive Officer of the Bank has assigned and may hereafter
assign to Executive. 
 (c) Faithful Performance. Except for periods of paid time off taken in accordance with
Section 3(f) hereof or following a Disability Determination made in accordance with Section 4(b) hereof, or for services performed for the Bank’s Affiliates (as defined below), Executive shall devote substantially all of his business
time, attention, skill and efforts during the Employment Period to the faithful performance of his duties hereunder, and shall not engage in any business or activity that interferes with the performance of such duties or conflicts with the business,
affairs or interests of the Bank or BankFinancial Corporation (“BFC”); provided that, notwithstanding the foregoing, Executive may hold directorships, offices or other positions in one or more other organizations to the extent
permitted by the Bank’s Professional Responsibility Policy, as amended from time to time, or as otherwise approved by the Board or the Chairman and Chief Executive Officer. 

(d) Performance Standards. During the Employment Period, Executive shall perform his duties in accordance with the policies
and procedures of the Bank, as amended from time to time, such reasonable performance standards as the Board or the Chief Executive Officer 

 
of the Bank has established or may hereafter establish in the exercise of good faith business judgment, including those set forth in the Bank’s Personnel Manual, as amended from time to
time, and such Business Plans as the Board or the Chief Executive Officer of the Bank has established or may hereafter establish in the exercise of good faith business judgment. 

 

	2.	TERM OF EMPLOYMENT. 

(a) Term. The Employment Period shall commence as of the Effective Date and shall thereafter continue for a period of
thirty-six (36) months unless extended as provided herein. On or before each anniversary of the Effective Date during the Employment Period (each an “Anniversary Date”), the Board, subject to the review process set forth in
Section 2(b) hereof, may extend the Employment Period for an additional one (1) year so that the remaining term of the Employment Period shall then be thirty-six (36) months. All references herein to the Employment Period shall mean,
for all purposes of this Agreement, Executive’s Employment Period as initially established by, and as may subsequently be extended pursuant to, this Section 2(a). 

(b) Annual Review. The Board or the Board’s Human Resources Committee (the “Human Resources Committee”)
shall review this Agreement and the compensation arrangements provided for herein at least annually on, before or within a reasonable time (not to exceed forty-five (45) days) after each Anniversary Date. As part of each annual review, the
Board or the Human Resources Committee shall determine whether or not to increase Executive’s Base Salary as provided in Section 3(a) hereof and to extend the Employment Period for an additional one (1) year as provided in
Section 2(a) hereof. The rationale and results of such review, and the justification for any such increase or extension, shall be documented in the minutes of the meeting at which the Board or the Human Resources Committee conducted such
review, or in any written performance reviews referenced in such minutes. The Board, the Human Resources Committee or a person designated by either of them shall notify Executive in writing as soon as practicable, and not later than forty-five
(45) days, after each applicable Anniversary Date, of the results of such review, including its decision whether or not to increase Executive’s Base Salary and to extend the Employment Period. A decision by or the failure of the Board or
the Human Resources Committee to increase Executive’s Base Salary shall not constitute a breach of this Agreement or a “Good Reason” under Section 5(b) hereof. All decisions and actions of the Human Resources Committee pursuant
to this Section 2(b) shall be subject to ratification by the Board only to the extent, if any, that ratification may be required by applicable laws and regulations. 

 

	3.	COMPENSATION AND OTHER BENEFITS. 

(a) Base Salary. During the Employment Period, the Bank shall pay Executive the annual base salary that is reflected in the
payroll records of the Bank on the Effective Date (“Base Salary”), subject to any discretionary increases that the Board may hereafter elect to make pursuant to this Section 3(a). Any portion of annual Base Salary that
Executive elects to defer under any deferred compensation arrangement that is now or hereafter maintained by the Bank shall be considered part of Base Salary for the purposes of this Agreement. Executive’s Base Salary shall be payable in
accordance with the regular payroll practices of the Bank. The Board or the Human Resources Committee may increase Executive’s Base Salary at any time, 

 

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but shall not reduce Executive’s Base Salary during the Employment Period without the Executive’s express prior written consent. All references herein to Base Salary shall mean, for all
purposes of this Agreement, Executive’s Base Salary as initially established in, and as may subsequently be increased pursuant to, this Section 3(a). 

(b) Bonuses; Incentive Compensation. In addition to Executive’s Base Salary, Executive shall be entitled to any cash
or equity-based incentive compensation and bonuses to the extent earned pursuant to any plan or arrangement of the Bank or BFC in which Executive is eligible to participate during the Employment Period, or to such other extent as the Board or its
Human Resources Committee may determine in its discretion to award to Executive. 
 (c) Other Compensation. The
Bank may provide such additional compensation to Executive in such form and in such amounts as may be approved by the Board or the Human Resources Committee in its sole discretion. 

(d) Special Allowances. The Bank shall provide Executive with either the use of an automobile or an automobile allowance
and either the use of a cellular telephone or a cellular telephone allowance during the Employment Period in accordance with the standard policies and practices of the Bank and consistent with that provided to Executive as of the Effective Date;
provided that the allowance for a given year must be paid to the Executive not later than 2.5 months after the end of such year. 

(e) Reimbursement of Expenses. The Bank shall pay or reimburse Executive in accordance with the standard policies and
practices of the Bank for all reasonable expenses incurred by Executive during the Employment Period in connection with his employment hereunder or the business of the Bank; provided that such payment or reimbursement must occur not later than 2.5
months after the end of the year in which such expense was incurred. 
 (f) Paid Time Off. Executive shall be
entitled to receive not less than 176 hours of paid time off (“PTO”) per calendar year during the Employment Period in accordance with the PTO policies of the Bank as then applicable to senior executive officers of the Bank.
Executive shall also be entitled to take time off during all legal holidays approved by the Board for Bank employees generally. Executive shall receive his Base Salary and the other amounts and benefits provided for in Section 3 hereof during
all PTO periods and legal holidays. Except as permitted by the PTO policies of the Bank, Executive shall not be entitled to receive any additional compensation for his failure to take PTO or accumulate unused PTO from one year to the next.

 (g) Other Benefits. The Bank shall provide Executive with all other benefits that are now or hereafter provided
uniformly to non-probationary full-time employees of the Bank during the Employment Period, including, without limitation, benefits under any Section 125 Cafeteria Plan, any group medical, dental, vision, disability and life insurance plans
that are now or hereafter maintained by the Bank (collectively, the “Core Plans”), and under any 401(k) plan (“401(k) Plan”) and Employee Stock Ownership Plan (“ESOP”) that is now or hereafter
sponsored by the Bank, in each case subject to the Bank’s policies concerning employee payments and contributions under such plans. The Bank shall not make any changes to any Core Plan that would materially and adversely affect Executive’s
rights or benefits under such plan unless such changes are made applicable to all non-probationary full-time employees of the Bank 

 

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on a non-discriminatory basis. Nothing paid to Executive under any Core Plan or any 401(k) Plan or ESOP shall be deemed to be in lieu of any other compensation that Executive is entitled to
receive under this Agreement. 
 (h) Disability Insurance. During the Employment Period, the Bank may provide
Executive with a disability insurance policy with coverage sufficient to provide Executive with annual disability insurance payments in an amount up to sixty percent (60%) of Executive’s Base Salary for a period at least equal to the then
remaining term of the Employment Period (the “Disability Policy”) in the event that Executive’s employment is terminated by reason of a Disability Determination (as defined below). If a Disability Policy is so provided,
Executive shall be responsible for the payment of all premiums on the Disability Policy and shall cooperate with the Bank in all respects as necessary or appropriate to enable the Bank to procure the Disability Policy, and the Bank shall provide
Executive with an annual allowance in an amount sufficient, on an after-tax basis, to equal the annual premiums for the Disability Policy; provided that the allowance for a given year must be paid to the Executive not later than 2.5 months after the
end of the year in which such premiums are paid. 
 (i) Disability Insurance Adjustment. If Executive receives
disability benefits under the Disability Policy or any Core Plan or receives federal Social Security disability benefits (collectively, “Disability Payments”), the Bank’s obligation under Section 3(a) and 6(b) hereof to
pay Executive his Base Salary shall be reduced, as of the date the Disability Payments are first received by Executive, to an amount equal to the difference between Executive’s Base Salary and the Disability Payments that Executive received
during each applicable payroll period. The Executive shall make reasonable good faith efforts to notify the Bank of the receipt of Disability Payments. 

(j) Limit on Perquisites. Notwithstanding the foregoing or anything to the contrary in this Agreement, the amounts payable
to Executive pursuant to Section 3(d) of this Agreement in a given year shall not in the aggregate exceed ten percent (10%) of the cash compensation (defined as payments under Sections 3(a), 3(b) and 3(c), including the value of annual
incentive compensation or bonuses to the extent paid in equity awards under BFC’s 2006 Equity Incentive Plan, as amended from time to time (the “2006 EIP”)) paid to Executive during such year. 

 

	4.	TERMINATION BY THE BANK. 

(a) Termination For Cause. The Board may terminate Executive’s employment with the Bank “For Cause” at any
time during the Employment Period, subject to the requirements set forth in this Section 4(a) and in Section 7 of this Agreement. A termination “For Cause” shall mean the Bank’s termination of Executive’s
full-time employment hereunder because of Executive’s 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, a repeated and material failure to achieve minimum objectives under a Business Plan established in accordance with Section 1(d) of this Agreement,
a repeated and material failure of Executive to meet reasonable performance standards established in accordance with Section 1(d) of this Agreement, or a material breach of any provision of this Agreement. Notwithstanding the foregoing,
Executive shall not be deemed to have been 
  

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terminated For Cause unless and until (i) there shall have been delivered to Executive a written notice of the Board’s intention to terminate Executive’s employment For Cause,
specifying the alleged grounds for such termination; (ii) if the alleged grounds for such termination are a material breach of this Agreement, a repeated and material failure to achieve minimum objectives under a Business Plan established in
accordance with Section 1(d) of this Agreement, or a repeated and material failure of Executive to meet reasonable performance standards established in accordance with Section 1(d) of this Agreement, providing Executive with a reasonable
opportunity to cure, if curable, any conduct or acts alleged to be such; (iii) following delivery of such written notice, Executive (together with any counsel selected by him) shall have been given a reasonable opportunity to present to the
Board, at a meeting called and held for or including that purpose, Executive’s position regarding any dispute that exists regarding the alleged grounds for termination For Cause; and (iv) the Board shall adopt a resolution by the
affirmative vote of not less than a majority of its members, finding in good faith and on the basis of reasonable evidence that Executive was guilty of conduct justifying a termination For Cause. The Notice of Termination (as defined in
Section 7 below) issued in connection with the termination of Executive’s employment For Cause shall be accompanied by a copy of such resolution. Should a dispute arise concerning the Executive’s termination For Cause, any review of
the For Cause termination in any judicial or arbitration proceeding will be limited to a determination of whether the Board acted in good faith and on the basis of reasonable evidence. 

(b) Termination for Disability. Upon a determination (a “Disability Determination”) of Disability (as
defined below), the Board, in its discretion, may terminate Executive’s employment with the Bank at any time from and after the date of such Disability Determination. Following a Disability Determination, the Board may, in lieu of terminating
Executive’s employment by reason of the Disability Determination, appoint one or more other persons to serve as an Acting Regional President of the Bank to fulfill, on a temporary basis, the duties and responsibilities of Executive. Any such
temporary appointment shall be without prejudice to the Board’s right to thereafter terminate Executive’s employment based on a Disability Determination made pursuant to this Section 4(b) or as otherwise provided herein. The term
“Disability” shall mean that (i) the Executive is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be
expected to last for a continuous period of not less than twelve (12) months, or (ii) the Executive is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to
last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Bank. 

(c) Termination Without Cause. The Board, in its discretion, may terminate Executive’s employment with the Bank
“Without Cause” at any time, subject to the notification requirements set forth in Section 7 hereof. A termination “Without Cause” shall mean the Board’s termination of Executive’s employment for any reason
other than a termination For Cause or a termination based on a Disability Determination or death. 
 (d) Termination under
Code Section 409A. Any termination described in this Section 4 will only be deemed to have occurred if such termination constitutes a “separation from service” as defined under Section 409A of the Internal Revenue
Code of 1986, as amended, or any successor thereto (the “Code”). 
  

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	5.	TERMINATION BY EXECUTIVE OR BY REASON OF DEATH. 

(a) Termination By Resignation. Executive may, in his discretion, terminate his employment with the Bank “By
Resignation” at any time during the Employment Period, subject to the notification requirements set forth in Section 7 hereof. A termination “By Resignation” shall mean Executive’s termination of his employment for
any reason other than a “Good Reason” as such term is defined in Section 5(b) hereof. 
 (b) Termination
For Good Reason. Executive may terminate Executive’s employment with the Bank for “Good Reason,” subject to the requirements set forth in this Section 5(b) and the notification requirements set forth in Section 7
hereof. A termination for “Good Reason” shall mean Executive’s resignation from the Bank’s employ during the Employment Period based upon any of the following reasons, but only if taken or occurring during the Employment
Period without Executive’s prior written express consent: (i) a decision by the Board not to elect or re-elect or to appoint or re-appoint Executive to the office of Regional President of the of the Bank, or a decision by the Board to
remove Executive from any such position; (ii) a failure by the Board to elect or re-elect or to appoint or re-appoint Executive to the office of Regional President of the of the Bank; (iii) the failure of the Board to extend the Employment
Period in accordance with Section 2(a) for an additional one (1) year so that the remaining term thereof will be thirty six (36) months; (iv) the Board’s relocation of Executive’s principal place of employment to a
place that is more than fifteen (15) miles from the city limits of Chicago, Illinois; (v) a reduction in Executive’s Base Salary, or a material reduction in the benefits to which Executive is entitled to receive under
Section 3(d) through Section 3(i) of this Agreement; (vi) a liquidation or dissolution of the Bank; (vii) a material uncured breach of this Agreement by the Bank; or (viii) the occurrence of a “Change in
Control” as such term is defined in the 2006 EIP. Executive shall have the right to elect to terminate his employment for Good Reason only by giving the Chairman and Chief Executive Officer of the Bank a Notice of Termination (as defined
below) within sixty (60) days after the act, omission or event giving rise to said right to elect. Notwithstanding the foregoing, Executive shall not have a right to elect to terminate his employment (i) based on the events set forth in
this Section 5(b) solely on the basis of the Board’s appointment of an Acting Regional President of the Bank following a Disability Determination made in accordance with Section 4(b) of this Agreement, or (ii) if the Bank fully
rescinds or cures, within ten (10) days after its receipt of Executive’s Notice of Termination, the act, omission or event giving rise to Executive’s right to elect to terminate his employment for Good Reason. 

(c) Termination Upon Death. Executive’s employment with the Bank shall terminate immediately upon Executive’s
death, without regard to the notification requirements set forth in Section 7 hereof. 
 (d) Termination under Code
Section 409A. Any termination described in this Section 5 will only be deemed to have occurred if such termination constitutes a “separation from service” as defined under Code Section 409A. 

 

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	6.	FINANCIAL CONSEQUENCES OF TERMINATION. 

(a) Termination For Cause. In the event that Executive’s employment is terminated For Cause during the Employment
Period, the Bank shall pay Executive the unpaid balance of Executive’s Base Salary through the effective date of the termination of Executive’s employment (“Earned Salary”), but Executive shall receive no bonus or
incentive compensation for the current year (all such amounts shall remain unearned and unvested), and shall receive no compensation or other benefits (including the compensation and benefits set forth in Section 3(a) through Section 3(i)
and Section 6 hereof) for any period after the effective date of the termination of Executive’s employment; provided, however, that any rights of Executive under any applicable state and federal laws, including ERISA and COBRA, and
any rights of Executive that have vested, whether by application of any state or federal law, the provisions of any contract, employee benefits plan or otherwise, shall not be terminated or prejudiced by a termination For Cause. Upon
Executive’s death, any payments due under this Section 6(a) shall be paid, as applicable, to Executive’s estate, trust or as otherwise required by law. 

(b) Termination for Disability. In the event that Executive’s employment is terminated during the Employment Period
based on a Disability Determination, the Bank shall: (i) pay Executive his Earned Salary (as defined above); (ii) pay Executive an amount equal to the annual average of any cash incentive compensation and bonus that Executive received
during the immediately preceding two (2) fiscal years, prorated based on the number of days during such year that elapsed prior to the effective date of the termination of Executive’s employment (“Prorated Incentive
Compensation”); (iii) make, for the benefit of Executive, the matching 401(k) plan contribution that Executive is entitled to receive for the current year, prorated based on the number of days during such year that elapsed prior to the
effective date of the termination of Executive’s employment (“Accrued Plan Contribution”); (iv) subject to the disability insurance adjustment set forth in Section 3(i) hereof, pay Executive the Base Salary that
Executive would have been paid pursuant to Section 3(a) hereof from the effective date of termination through the date the Employment Period would have expired if Executive’s employment had not been sooner terminated based on a Disability
Determination; (v) provide Executive ( and upon his death his surviving spouse and minor children, if any) with the same coverage under the Core Plans that Executive (and his surviving spouse and minor children, if any) would have been provided
pursuant to Section 3(g) hereof from the effective date of termination through the date the Employment Period would have expired if Executive’s employment had not been sooner terminated based on a Disability Determination (subject to
payment of the costs and contributions that such plans provide are the responsibility of the insured employee); and (vi) provide Executive (and his surviving spouse and minor children, if any) with the health insurance continuation benefits set
forth in Section 6(i), beginning on the date of the expiration of the health insurance coverage provided under the Core Plans pursuant to Section 6(b)(v) (subject to the payment of the costs specified therein). Amounts payable under
Subsections (ii) and (iv) of this Section 6(b) shall be paid in a single lump sum on the Bank’s second regular payroll date after the effective date of termination unless deferral of such payment is required under Section 24
of this Agreement. If deferral is required, Section 24 shall control the timing of such payments. 
 (c) Termination
Without Cause. In the event that Executive’s employment is terminated Without Cause during the Employment Period, the Bank shall: (i) pay Executive his 

 

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Earned Salary (as defined above); (ii) pay Executive his Prorated Incentive Compensation (as defined above); (iii) make, for the benefit of Executive, the Accrued Plan Contribution (as
defined above); (iv) pay Executive an amount equal to three (3) times Executive’s Average Annual Compensation (defined below); (v) provide Executive (and upon his death his surviving spouse and minor children, if any) with
coverage under the Core Plans for a period of 36 months from the effective date of the termination of Executive’s employment (subject to payment of the costs and contributions that such plans provide are the responsibility of the insured
employee); and (vi) provide Executive (and his spouse and minor children, if any) with the health insurance continuation benefits set forth in Section 6(i) beginning on the expiration date of the health insurance coverage provided under
the Core Plans pursuant to Section 6(c)(v) (subject to the payment of the costs specified therein). The term “Average Annual Compensation,” as used in this Section 6(c), shall mean the average of Executive’s annual
Compensation based on the most recent three (3) taxable years, or if Executive was employed by the Bank for less than three (3) full taxable years, based on such lesser number of taxable years or portions thereof as Executive was employed
by the Bank. The term “Compensation” shall mean, for the purposes of the foregoing definition as it relates to any tax year, all Base Salary paid pursuant to Section 3(a), incentive compensation or bonuses paid pursuant to
Section 3(b) (whether paid in cash or through equity awards made pursuant to the 2006 EIP), and any other compensation paid pursuant to Section 3(c). For purposes of clarity and not limitation, if all or a portion of Executive’s
annual incentive compensation or bonus is paid in the form of equity awards or is paid in cash and converted after-tax into equity awards, then such amounts, on a gross basis, shall be included in the term Compensation; provided, however,
that the term “Compensation” shall not include the initial equity awards that were made to Executive in 2006 under the 2006 EIP. Amounts payable under Subsections (ii) and (iv) of this Section 6(c) shall be paid in a single
lump sum on the Bank’s second regular payroll date after the effective date of termination unless deferral of such payment is required under Section 24 of this Agreement. If deferral is required, Section 24 shall control the timing of
such payments. 
 (d) Termination By Resignation. In the event that Executive’s full-time employment is
terminated By Resignation during the Employment Period, the Bank shall pay Executive his Earned Salary (as defined above), but Executive shall receive no compensation or other benefits (including the compensation and benefits set forth in
Section 3(a) through Section 3(i) hereof) for any period after the effective date of the termination of Executive’s employment; provided, however, that any rights of Executive under any applicable state and federal laws,
including ERISA and COBRA, and any rights of Executive that have vested, whether by application of any applicable state or federal law, the provisions of any contract, employee benefits plan or otherwise, shall not be terminated or prejudiced by a
termination By Resignation. 
 (e) Termination for Good Reason. In the event that Executive’s employment is
terminated by Executive for Good Reason during the Employment Period, the Bank shall pay Executive the same amounts that Executive would have been paid pursuant to Sections 6(c) (i), (ii), (iii) and (iv), and shall provide Executive (and upon
his death his surviving spouse and minor children, if any) with the same coverages under the Core Plans coverage that Executive (and his spouse and minor children, if any) would have been provided pursuant to Section 6(c)(v) (subject to the
payment of the costs and contributions that such plans provide are the responsibility of the insured employee) and the same health insurance continuation benefits that 

 

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Executive (and his spouse and minor children, if any) would have been provided pursuant Section 6(c)(vi) (subject to the payment of the costs specified therein) if Executive’s
employment had been terminated by the Bank Without Cause on the effective date of the termination of Executive’s employment. Amounts payable under this Section 6(e) shall be paid in a single lump sum on the Bank’s second regular
payroll date after the effective date of termination unless deferral of such payment is required under Section 24 of this Agreement. If deferral is required, Section 24 shall control the timing of such payments. 

(f) Termination Upon Death. In the event Executive’s employment with the Bank is terminated during the Employment
Period by reason of Executive’s death, the Bank shall pay Executive’s estate or trust, as applicable, the same amounts Executive would have been paid pursuant to Sections 6(b)(i), (ii), (iii) and (iv), and shall provide his surviving
spouse and minor children, if any, with the same coverages under the Core Plans that they would have been provided pursuant to Section 6(b)(v) (subject to the payment of the costs and contributions that such plans provide are the responsibility
of the insured employee) and the same health insurance continuation coverages they would have been provided pursuant to Section 6(b)(vi) (subject to the payment of the costs specified therein) if Executive’s employment had been terminated
by the Bank based on a Disability Determination on the date of Executive’s death. Amounts payable under this Section 6(f) shall be paid in a single lump sum on the Bank’s second regular payroll date after the date of Executive’s
death. 
 (g) Capital Limitations. Notwithstanding any other provisions of this Agreement and to the extent
permitted under Code Section 409A: (i) in the event the Bank is not in compliance with its minimum capital requirements as established by applicable federal laws and regulations at the time any payment becomes due to Executive pursuant to
Section 6 hereof, the Bank shall be entitled to defer such payment until such time as the Bank is in compliance with such minimum capital requirements; and (ii) if the Bank is in compliance with such minimum capital requirements at the
time any such payment becomes due, but the making of any such payment would cause the Bank’s capital to fall below such minimum capital requirements, the Bank shall be entitled to reduce the amount of such payment as necessary to enable the
Bank to remain in compliance with such minimum capital requirements, subject to the Bank’s obligation to pay the amount of any such reductions (or any portion thereof) as soon as such amount can be paid without causing the Bank’s capital
to fall below such minimum capital requirements. 
 (h) Section 280G Limitation. Notwithstanding any other
provisions of this Agreement, in no event shall the aggregate payments or benefits to be made or afforded to Executive pursuant to Section 6 of this Agreement constitute an “excess parachute payment” under Section 280G of the
Code. In order to avoid such a result, such aggregate payments or benefits will be reduced, if necessary, to a lesser amount, the value of which is one dollar ($1.00) less than an amount equal to three (3) times Executive’s “base
amount” as determined in accordance with said Section 280G. The reduction shall be allocated among the components of such payments and benefits in the manner designated by Executive. 

(i) Post-Employment Health Insurance. In the event of Executive’s termination of employment pursuant to Sections
4(b), 4(c), 5(b) or 5(c), beginning on the expiration date of any health insurance coverage under the Core Plans provided pursuant to Section 6 hereof and continuing through the earlier of (i) the date on which Executive becomes
eligible for 
  

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comparable coverage under another group health insurance plan with no pre-existing condition limitation or exclusion or (ii) the date on which Executive becomes entitled to benefits under
Medicare (and the date on which the Executive’s spouse becomes entitled to benefits under Medicare with respect to the right to continued coverage for such spouse), Executive (and any qualified dependents, including Executive’s spouse)
shall be entitled to group health insurance coverage. Such coverage shall be provided under the group health insurance plan in which the employees and senior executives of BFC and the Bank (including the employees and senior executives of any
successors of BFC and the Bank) participate (as such plan is then in effect and as it may be modified, replaced or substituted at any time and from time to time during the period of coverage contemplated in this Section 6(i)), to the same
extent as Executive was participating immediately prior to termination, at the Executive’s cost, which cost shall be an amount equal to the cost of such benefits as if such benefits were being provided pursuant to COBRA. Executive shall
promptly notify BFC if Executive becomes eligible for coverage under another group health plan with no pre-existing condition limitation or exclusion or Executive becomes entitled to full benefits under Medicare. Nothing contained in this section is
intended to limit or otherwise modify benefits that the Executive may otherwise be entitled to under this Agreement with respect to the Core Plans. 

(j) General Release. In consideration of the Bank’s agreements with respect to the monetary payments and other
benefits provided for in Section 6 of this Agreement (which payments and benefits exceed the nature and scope of that to which Executive would have been legally entitled to receive absent this Agreement), and as a condition precedent to
Executive’s receipt of such payments and other benefits, Executive (or in the event of Executive’s death, Executive’s executor, trustee, administrator or personal representative, as applicable), shall, at the time the first of any
such payments and other benefits is tendered, execute and deliver to the Bank a general release in favor of the Bank and its Affiliates (as defined below), releasing all claims, demands, causes of actions and liabilities arising out of this
Agreement, Executive’s employment or the termination thereof, including, but not limited to, claims, demands, causes of action and liabilities for wages, back pay, front pay, attorney’s fees, other sums of money, insurance, benefits, or
contracts; and all claims, demands, causes of actions and liabilities arising out of or under the statutory, common law or other rules, orders or regulations of the United States or any State or political subdivision thereof, whether now existed or
hereinafter enacted or adopted, including the Age Discrimination in Employment Act and the Older Workers Benefit Protection Act, and no further payments shall be due Executive until such time as all applicable waiting or rescission periods
thereunder shall have expired or shall have been waived. Notwithstanding the foregoing or anything to the contrary herein, the general release shall not release, and shall expressly reserve, any unperformed obligations of the Bank under this
Agreement, or of BFC under the 2006 EIP, to Executive. 
  

	7.	NOTICE OF TERMINATION. 

Any termination or purported termination by the Bank or Executive of Executive’s employment with the Bank shall be communicated by a
Notice of Termination to the other party. A “Notice of Termination” shall mean a written notice that shall set forth the effective date of the termination of Executive’s employment, identify the specific termination
provision(s) in this Agreement relied upon, and set forth in reasonable detail the facts and circumstances claimed to provide a basis for the termination of Executive’s employment under the provision so identified.

  

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The party issuing the Notice of Termination shall cause it to be delivered to the other party either in person, by United States mail or via a reputable commercial delivery service (i) not
less than thirty (30) days prior to the effective date of termination in the case of a termination Without Cause or By Resignation or based on a Disability Determination; (ii) not less than thirty (30) days prior to the effective date
of termination and as otherwise provided in Section 4(a) hereof in the case of a termination For Cause; and (iii) as provided in Section 5(b) hereof in the case of a termination for Good Reason. Notices to the Bank shall be addressed
and delivered to the principal headquarters office of the Bank, Attention: Chief Executive Officer and General Counsel, with a copy concurrently so delivered to General Corporate Counsel to the Bank, Barack Ferrazzano Kirschbaum & Nagelberg
LLP, 200 West Madison Street, Suite 3900, Chicago, Illinois 60606, to the joint attention of Edwin S. del Hierro and Donald L. Norman, Jr. Notices to the Executive shall be sent to the address set forth below the Executive’s signature on this
Agreement, or to such other address as Executive may hereafter designate in a written notice given to the Bank and its counsel. 
  

	8.	NON-COMPETITION AND OTHER AGREEMENTS. 

(a) Non-Competition. Executive shall not, during the Non-Competition Period (as hereinafter defined), directly or
indirectly, and in any capacity, including as an individual for Executive’s own account, or as an employee, agent, independent contractor, consultant, officer, director, stockholder, owner or member of any association, corporation (whether for
profit or not for profit), partnership (whether general or limited), limited liability company, trust, firm, any federal, state or local government, agency, commission, board, district or body politic, any other registered or legal entity of any
type (each a “Legal Entity”), or as an employee, agent, independent contractor or consultant of or for any person, compete with the Bank in any of the following lines of business: the business of originating or purchasing loans,
leases and payment streams thereunder, accepting deposits, selling or providing insurance, securities, financial planning, and asset management products and services, accepting referrals of any of the foregoing, and other business contracts,
relationships or activities of the Bank and any Affiliate (as defined below) of the Bank (collectively, “Banking Business”) from a place that is located within five (5) miles of a place where the Bank or any Affiliate maintains
a branch, office or other place of business, or has filed a regulatory notice or application to establish a branch, office or other place of business (collectively, the “Restricted Area”). The term “Non-Competition
Period” shall mean: (i) the greater of (A) six (6) months after the effective date of the termination of Executive’s employment, and (B) any period of time during which Executive is entitled to receive payments or
benefits pursuant to Section 6(b), 6(c) or 6(e) of this Agreement on account of a termination based on a Disability Determination, Without Cause or for Good Reason, respectively; and (ii) six (6) months from the effective date of the
termination of Executive’s employment if such employment is terminated By Resignation or With Cause. The term “Affiliate” means, for all purposes of this Agreement, any Legal Entity that directly or indirectly, through one or
more intermediaries, controls, or is controlled by, or is under common control with, the Bank. The following Legal Entities are Affiliates of the Bank as of the date of this Agreement: BFC; Financial Assurance Services, Inc.; SXNB Corporation (an
Illinois corporation in dissolution); Success Bancshares, Inc. (a Delaware corporation in dissolution); and BF Asset Recovery Corporation. 
  

 11 

 (b) Non-Solicitation. Executive shall not, during the Non-Solicitation Period
(as hereinafter defined), directly or indirectly, either as an individual for Executive’s own account, or as an employee, agent, independent contractor or consultant of or for any person or Legal Entity, or as an officer, director, stockholder,
owner or member of any Legal Entity: (i) call upon or solicit for the purpose of obtaining Banking Business from, or do any Banking Business with, any person or Legal Entity that was or is a customer of the Bank or any Affiliate at any time
between the Effective Date of this Agreement and the last day of the Non-Solicitation Period, and with which Executive had dealings on behalf of the Bank (a “Protected Customer”); (ii) divert or take away from the Bank or an
Affiliate any existing Banking Business between the Bank or an Affiliate and a Protected Customer; (iii) call upon or solicit for the purpose of obtaining Banking Business from, or do any Banking Business with, any person or Legal Entity from
which the Bank or an Affiliate purchased loans or personal property leases (or any payment streams thereunder), or that referred or originated loans or personal property leases (or any payment streams thereunder) to, for or on behalf of the Bank or
an Affiliate at any time between the Effective Date of this Agreement and the last day of the Non-Solicitation Period (a “Protected Referral Source”); (iv) divert or take away from the Bank or an Affiliate any existing Banking
Business between the Bank or an Affiliate and a Protected Referral Source; (v) solicit or induce any Protected Customer or Protected Referral Source to terminate or not renew or continue any Banking Business with the Bank or any Affiliate, or
to terminate or not renew or continue any contractual relationship with the Bank or any Affiliate; (vi) hire, or assist or cause any person or Legal Entity with which Executive is affiliated or associated in hiring, any person who was or is an
employee of the Bank or any Affiliate between the Effective Date of this Agreement and the last day of the Non-Solicitation Period (a “Protected Employee”); (vii) solicit or induce any Protected Employee to terminate his or her
employment with the Bank or any Affiliate; or (viii) attempt to do, or conspire with or aid and abet others in doing or attempting to do, any of the foregoing. The term “Non-Solicitation Period” shall mean, except as provided
in Section 8(f) below, a period of eighteen (18) months commencing on the effective date of the termination of Executive’s employment. 

(c) Confidentiality. Executive recognizes and acknowledges that personal information and knowledge thereof regarding the
customers of the Bank and its Affiliates are protected by state and federal law and the Privacy Principles of the Bank and its Affiliates, as amended from time to time (collectively, “Protected Customer Information”), and that
customer lists, trade secrets, nonpublic financial information, and nonpublic past, present, planned or considered business activities of the Bank and its Affiliates and any plans for such business activities (collectively, “Proprietary
Information”) are valuable, special and unique assets of the Bank. Executive will not, during or after the Employment Period, disclose any Protected Customer Information or Proprietary Information or his knowledge thereof to any person or
Legal Entity other than the Bank of any Affiliate, or use any Protected Customer Information or Proprietary Information to the detriment of the Bank, any Affiliate or any of their respective customers or employees, or for the benefit of himself, any
person or any Legal Entity, for any reason or purpose whatsoever. Notwithstanding the foregoing, Executive may (i) disclose and use information that becomes publicly known through no wrongful act or omission of Executive, but only if the
disclosure of such information is not restricted by any applicable state or federal laws or regulations and the information is not received from a person who was or is bound by an obligation not to disclose such information; (ii) disclose and
use any financial, banking, business or economic principles, concepts or ideas that do not constitute 
  

 12 

 
Protected Customer Information or Proprietary Information; (iii) disclose any information regarding the business activities of the Bank or its Affiliates to a governmental authority pursuant
to a formal written request made by such governmental authority; and (iv) disclose any information required to be disclosed by Executive pursuant to an order or judicial process issued by a court of competent jurisdiction; provided,
however, that to the extent not prohibited by applicable state or federal law, Executive shall provide the Bank or the applicable Affiliate with at least ten (10) days’ prior written notice of his intention to disclose information
pursuant to subparagraph (iii) or (iv) of this Section 8(c). 
 (d) Cooperation in Legal
Proceedings. During the Employment Period and for a period equal to three (3) years from the effective date of the termination of Executive’s employment, Executive shall, upon reasonable notice, furnish such cooperation,
information and assistance to the Bank as may reasonably be required by the Bank or any Affiliate of the Bank in connection with any pending or threatened judicial, administrative or arbitration proceeding or any investigation that is based on
events or circumstances in which Executive had personal knowledge or involvement and in which the Bank or any of its Affiliates is or may become a party or target, except for proceedings instituted against Executive by the Bank or any governmental
or regulatory authority, or proceedings instituted by Executive against the Bank to enforce the terms of this Agreement or any other duties or obligations of the Bank to Executive. The Bank, or if applicable, its Affiliate, shall reimburse Executive
for all reasonable costs and expenses incurred by Executive in providing such cooperation, information and assistance. Unless Executive’s appearance is compelled by a court order or other legal process, Executive shall not be obligated to
devote more than two (2) days per calendar month in fulfilling his obligations under this Section 8(d), and the Bank or its Affiliate shall make reasonable accommodations to avoid interfering with any duties that Executive may then have to
any client or other employer. Notwithstanding anything to the contrary in this Section 8(d) or this Agreement, while Executive will be encouraged to voluntarily provide sworn testimony where appropriate, Executive shall have no duty to provide
sworn testimony in any judicial, arbitration or discovery proceeding except as may be required by any rule of procedure, subpoena or judicial process applicable to or enforceable against Executive, and in no case shall Executive be required to
provide any testimony that, in the judgment of Executive, might or could expose him to civil liability or compromise his privilege against self incrimination. Any testimony given by Executive in such a proceeding shall be truthful, but in no event
shall the content of any testimony given by Executive in such a proceeding constitute a breach of this Section 8(d) or any other provision of this Agreement. Executive may condition his providing of assistance and testimony hereunder on his
receipt of an undertaking from the Bank that it will indemnify him for such actions to the fullest extent permitted by applicable law. 

(e) Remedies. Executive and the Bank stipulate that irreparable injury will result to the Bank and its Affiliates and their
business and property in the event of Executive’s violation of any provision of this Section 8, and agree that, in the event of any such violation by Executive, the Bank, and if applicable, its Affiliates, will be entitled, in addition to
any other rights, remedies and money damages that may then be available, to injunctive relief to restrain the violation hereof by Executive, Executive’s partners, agents, servants, employees and all persons acting for, under the direction or
control of or in concert with Executive, and to such other equitable remedies as may then be available. Nothing herein will be construed as prohibiting the Bank or any Affiliate from pursuing any other remedies available to the Bank or such
Affiliate for such breach or threatened breach, including the recovery of money damages from Executive. 
  

 13 

 (f) Adjustment of Non-Solicitation Period. The Non-Solicitation Period shall
be reduced from eighteen (18) months to ninety (90) days, but only with respect to the restrictions set forth in Subsection (b)(i) and Subsection (b)(iii) of Section 8 of this Agreement (and the prohibitions in Subsection (b)(viii) of
Section 8 against aiding, abetting, inducing or conspiring with others to violate those restrictions), in the event that the Bank terminates Executive’s employment For Cause based on a repeated and material failure to achieve minimum
objectives under a Business Plan established in accordance with Section 1(d) of this Agreement, or a repeated and material failure of Executive to meet reasonable performance standards established in accordance with Section 1(d) of this
Agreement. The Non-Solicitation Period shall be reduced from eighteen (18) months to six (6) months, but only with respect to the restrictions set forth in Subsection (b)(i) and Subsection (b)(iii) of Section 8 of this Agreement (and
the prohibitions in Subsection (b)(viii) of Section 8 against, aiding, abetting, inducing or conspiring with others to violate those restrictions), in the event that the Bank terminates this Agreement Without Cause or Executive terminates this
Agreement for Good Reason, provided that, in either case, Executive executes and delivers to the Bank a writing, acceptable in form and substance to the Bank, that releases and waives any and all obligations that the Bank may have under
Section 6(c) or 6(e) of this Agreement to pay Executive any Base Salary after the expiration of such six-month period, or to provide Executive (or upon his death, his surviving spouse and minor children, if any) with coverage under the Core
Plans after the expiration of such six-month Non-Solicitation Period. 
  

	9.	SOURCE OF FUNDS; ALLOCATION. 

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

 

	10.	EFFECT ON PRIOR AGREEMENTS AND EXISTING PLANS. 

This Agreement contains the entire understanding between the parties hereto with respect to Executive’s employment with the Bank, and
supersedes the Initial Agreement, any prior offer of employment, employment letter or other agreements or understandings between the Bank and Executive, whether oral or written, with respect thereto, except that this Agreement shall not affect or
operate to reduce any benefit or compensation inuring to Executive of a kind provided for in any Core Plan or any separate plan or program established for the benefit of Bank employees generally, or any separate plan or program established after the
date of this Agreement for the specific benefit of Executive. 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.

  

	11.	MODIFICATION AND WAIVER. 

This Agreement may not be modified or amended except by an instrument in writing signed by the parties hereto and approved by the Board;
provided that in no circumstances may this Agreement be modified or amended if such modification or amendment would not be 
  

 14 

 
permitted under Code Section 409A. 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. Notwithstanding the foregoing, in the event that any provision or the implementation of any
provision of this Agreement is finally determined to violate any applicable law, regulation or other regulatory requirement that is binding on the Bank, or to constitute an unsafe and unsound banking practice, Executive and the Bank agree to amend
such provision to the extent necessary to remove or eliminate such violation or unsafe and unsound banking practice, and such provision shall then be applicable in the amended form. 

 

	12.	NO ATTACHMENT. 

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

	13.	REQUIRED PROVISIONS. 

In the event any of the foregoing provisions of this Agreement are in conflict with the provisions of this Section 13, this
Section 13 shall prevail. 
 (a) Rights Not Prejudiced. The Bank may terminate Executive’s employment at
any time, but any termination by the Bank, other than For Cause, shall not prejudice any right of Executive to compensation or other benefits under this Agreement. Executive shall not have the right to receive compensation or other benefits for any
period after a termination For Cause as provided in Section 6(a) hereof. 
 (b) Suspension; Temporary
Removal. To the extent permitted by Code Section 409A, if Executive is suspended and/or temporarily prohibited from participating in the conduct of the affairs of the Bank or an Affiliate by a notice served under Section 8(e)(3) or
8(g)(1) of the Federal Deposit Insurance Act, 12 U.S.C. Section 1818(e)(3) or (g)(1), 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 the contract obligations were suspended; and (ii) reinstate (in whole or in part) any of the obligations which were
suspended. 
 (c) Removal; Prohibition. If Executive is removed and/or permanently prohibited from participating
in the conduct of the affairs of the Bank or an Affiliate by an order issued under Section 8(e)(4) or 8(g)(1) of the Federal Deposit Insurance Act, 12 U.S.C. Section 181 8(e)(4) or (g)(1), 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. 
  

 15 

 (d) Bank in Default. If the Bank is in default as defined in
Section 3(x)(1) of the Federal Deposit Insurance Act, 12 U.S.C. Section 1813(x)(1), 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) Regulatory Termination. All obligations under this Agreement shall be terminated,
except to the extent determined that continuation of this Agreement is necessary for the continued operation of the institution: (i) by the Director of the OTS (or his designee) 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) of the Federal Deposit Insurance Act, 12 U.S.C. Section 1823(c); or (ii) by the Director of the OTS (or his designee) at the time the Director (or
his designee) approves a supervisory merger to resolve problems related to the operations 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) Certain Payments. Any payments made to Executive pursuant to
this Agreement, or otherwise, are subject to and conditioned upon compliance with 12 U.S.C. Section 1828(k) and 12 C.F.R. Section 545.121 and any rules and regulations promulgated thereunder. 

(g) OTS Limitation. Notwithstanding anything to the contrary in this Agreement, in no case shall the total Departure
Compensation (defined below) paid to Executive upon the termination of his employment with the Bank, regardless of the reason, exceed three (3) times Executive’s Average Annual Regulatory Compensation (defined below). The term
“Departure Compensation” shall mean any payments and other things of value that the Bank makes or provides to Executive upon the termination of Executive’s employment with the Bank, but shall not mean or include any Prorated
Incentive Compensation (defined above) that the Board determines was earned by Executive prior to the Effective Date of termination, any Earned Salary (defined above) or any Accrued Plan Contributions (defined above). The term “Average
Annual Regulatory Compensation” shall mean the average of Executive’s annual Regulatory Compensation (defined below) based on the most recent three (3) tax years, or if Executive was employed by the Bank for less than three
(3) full tax years, based on such lesser number of tax years or portions thereof as Executive was employed by the Bank. The term “Regulatory Compensation” shall mean, for the purposes of the foregoing definition as it relates
to any tax year, any payment of money or provision of any other thing of value by the Bank to Executive in consideration of Executive’s employment, including, without limitation, Base Salary, commissions, bonuses, pension and profit-sharing
plans, severance payments, retirement, director or committee fees, fringe benefits, payment of expense items without accountability or business purpose or that do not meet Internal Revenue Service requirements for deductibility by the association.
In the event that the total Departure Compensation that becomes due to Executive under this Agreement exceeds three (3) times Executive’s Average Annual Regulatory Compensation, the aggregate payments or other things of value constituting
Departure Compensation shall be reduced to a lesser amount, the value of which shall be one dollar ($1.00) less than three (3) times Executive’s Average Annual Regulatory Compensation. In such a case, the reduction shall be allocated among
the components of such payments and other things of value in the manner designated by Executive. 
  

 16 

	14.	WITHHOLDING. 

 All
payments required to be made to Executive under this Agreement shall be subject to the withholding of such amounts, if any, relating to tax and other payroll deductions as the Bank reasonably determines should be withheld pursuant to any applicable
state or federal law or regulation. 
  

	15.	SEVERABILITY. 

 If,
for any reason, any provision of this Agreement, or any part of any provision, is held invalid, such invalidity shall not affect any other provision of this Agreement or any part of such provision that is not held invalid, and each such other
provision and part thereof shall to the full extent consistent with law continue in full force and effect. Without limiting the foregoing, if any provisions of Section 8 of this Agreement are held to be unenforceable because of the scope,
duration or area of applicability, the court making such determination shall have the power to modify such scope, duration or area of applicability, or all of them, and such provision shall then be applicable in the modified form. 

 

	16.	HEADINGS FOR REFERENCE ONLY. 

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

	17.	GOVERNING LAW. 

The validity, interpretation, performance and enforcement of this Agreement shall be governed by the internal laws of the State of
Illinois, without regard or reference to any principles of conflicts of law of the State of Illinois, except to the extent that such internal laws are preempted by the laws of the United States or the regulations of the OTS or any other agency of
the United States. 
  

	18.	DISPUTE RESOLUTION. 

(a) Arbitration. Except for claims, cases or controversies based on or arising out of Section 8 of this Agreement
(“Section 8 Claims”), all claims, cases or controversies arising out of or in connection with either this Agreement, Executive’s employment with the Bank or the termination or cessation of such employment (collectively,
“Employment Claims”), whether asserted against the Bank, an Affiliate (as defined below), and/or an officer, director or employee of the Bank or an Affiliate, and whether based on this Agreement or existing or subsequently enacted
or adopted statutory or common law doctrines, shall be finally settled by arbitration conducted by JAMS Endispute or a successor entity (“JAMS”) in Chicago, Illinois, in accordance with the then applicable Employment Arbitration
Rules and Procedures of JAMS, or in the event JAMS or a successor in interest of JAMS no longer provides arbitration services, by the American Arbitration Association or a successor entity (the “AAA”) in accordance with its then
applicable National Rules for the Resolution of Employment Disputes. The costs and fees imposed by JAMS or the AAA for conducting such arbitration shall be borne equally by Executive and the Bank unless the arbitrator determines otherwise. The award
rendered by the 
  

 17 

 
arbitrator(s) shall be final and binding upon Executive, the Bank and any other parties to such proceeding, and may be entered and enforced as a judgment in any court of competent jurisdiction.
The Employment Claims subject to arbitration hereunder shall include, but shall not be limited to, those arising under the Age Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964, as amended, including the amendments of the
Civil Rights Act of 1991, the Older Workers Benefit Protection Act, the Americans with Disabilities Act, the law of contract, the law of tort, and other claims under federal, state or local statutes, ordinances and rules or the common law. Executive
and the Bank acknowledge that by agreeing to arbitration they are relinquishing all rights they have to sue each other for Employment Claims that do not constitute Section 8 Claims and any rights that they may have to a jury trial on Employment
Claims that do not constitute Section 8 Claims. 
 (b) Section 8 Claims. All Section 8 Claims shall
be brought, commenced and maintained only in a state or federal court of competent jurisdiction situated in the County of Cook or the County of DuPage, State of Illinois. Executive and the Bank each hereby (i) consents to the exercise of
jurisdiction over his or its person and property by any court of competent jurisdiction situated in the County of Cook or the County of DuPage, State of Illinois for the enforcement of any claim, case or controversy based on or arising under
Section 8 of this Agreement; (ii) waives any and all personal or other rights to object to such jurisdiction for such purposes; and (iii) waives any objection which it may have to the laying of venue of any such action, suit or
proceeding in any such court. 
  

	19.	INDEMNIFICATION AND INSURANCE. 

(a) Indemnification, Advancement and Insurance. The Bank shall, subject to the conditions and findings set forth in 12
C.F.R. Section 545.121: (i) provide Executive (including his heirs, executors and administrators), at the Bank’s expense, with insurance under a directors’ and officers’ liability insurance policy that reasonably and
adequately insures Executive for his acts and omissions as a director, officer or employee of the Bank and its subsidiaries; (ii) indemnify Executive (and his heirs, executors and administrators) against all judgments entered and settlements
made in any pending or threatened action and any appeal or other proceeding for review of such action, regardless of whether such action is a judicial or administrative proceeding, if such action was brought or threatened because Executive is or was
a director, officer or employee of the Bank or any of its subsidiaries; (iii) indemnify Executive (and his heirs, executors and administrators) against all and reasonable costs and expenses, including reasonable attorney’s fees, actually
paid or incurred by Executive in defending or settling any such action, or in enforcing Executive’s rights to indemnification under this Section 19; and (iv) to the extent that the Bank is not then authorized by applicable law to
provide such indemnification, advance Executive his reasonable costs and expenses, including reasonable attorney’s fees, arising from the settlement or defense of any such action, subject to the Bank’s receipt of a written undertaking from
Executive to repay all costs and expenses so advanced if Executive is later determined not to be entitled to indemnification. In the event that 12 C.F.R. Section 545.121 or the provisions of the Bank’s bylaws or charter that relate to
indemnification and the advancement of expenses are hereafter amended, such amendment shall apply to the Bank’s obligations under this Section 19, but only to the extent that it increases the Bank’s authority to indemnify or advance
expenses to Executive beyond the authority that was provided, or reduces any limitations on such authority that were imposed, by 12 C.F.R. Section 545.121 

 

 18 

 
and the provisions of the Bank’s bylaws or charter on the Effective Date. Notwithstanding the foregoing and anything to the contrary in this Agreement, the Bank shall have no obligations
under this Section 19 or under any provision of its charter or bylaws to provide indemnification or advance expenses to Executive in connection with any pending or threatened action, and any appeal or other proceeding for review of such action,
regardless of whether such action is a judicial or administrative proceeding, if such action was brought or threatened because Executive is or was a director, officer or employee of a person or Legal Entity that is not or was not an Affiliate of the
Bank, or because of any duty or alleged duty arising out of a past or present employment, contractual or other legal relationship between Executive and a Legal Entity that is or was not an Affiliate of the Bank. Any payments made to Executive
pursuant to this Section 19 shall be subject to and conditioned upon compliance with the applicable provisions of 12 U.S.C. 1828(k), as amended, and 12 C.F.R. Section 545.121, as amended, and any rules or regulations promulgated in
connection with therewith. 
 (b) Procedures. Any request for indemnity or the advancement of expenses shall be
made in a written notice delivered by Executive to the General Counsel of the Bank. The notice shall describe with reasonable particularity the claim that has been made or threatened against Executive and the reasons why Executive believes that it
is lawful and appropriate for the Bank to indemnify or advance expenses to him in connection with such claim. Following the delivery of such written notice, the Board shall, as soon as practicable and by no later than its next regularly scheduled
Board meeting, adopt a resolution by the affirmative vote of not less than a majority of its members (i) determining in good faith and on the basis of reasonable evidence or other information whether or not Executive, in connection with such
claim, was acting in good faith within the scope of his employment or authority as he perceived it under the circumstances and for a purpose he could reasonably have believed under the circumstances was in the best interests of the Bank, and
(ii) determining whether or not the Bank will approve or deny Executive’s request subject to any regulatory notification requirements; provided, however, that if the Board lacks sufficient evidence or other information at the time
of such meeting to make the determination set forth in Subsection (i) of this Section 19(b), the Board shall adopt a resolution at such meeting by the affirmative vote of not less than a majority of its members determining whether or not
the Bank will advance Executive the reasonable costs of defending or settling such claim, subject to such undertakings by Executive as may be required by applicable law. The Board shall provide Executive with a copy of each such resolution promptly
after its adoption. 
  

	20.	COSTS AND LEGAL FEES. 

(a) Payment to Executive. Except as provided in Section 18(a) hereof, in the event any dispute or controversy arising
under or in connection with any provision of this Agreement other than Section 8 hereof is resolved on the merits in favor of Executive pursuant to an arbitration award or final judgment, order or decree of a court of competent jurisdiction
(the time for appeal therefrom having expired and no appeal having been perfected), the Bank shall be obligated to pay Executive, within thirty (30) days after the date on which such judgment becomes final and not subject to further appeal, all
reasonable costs and legal fees paid or incurred by Executive in connection with such dispute or controversy. 
  

 19 

 (b) Payment to Bank. Except as provided in Section 18(a) hereof, in the
event any dispute or controversy arising under or in connection with Section 8 of this Agreement is resolved on the merits in favor of the Bank pursuant to an arbitration award or final judgment, order or decree of a court of competent
jurisdiction (the time for appeal therefrom having expired and no appeal having been perfected), Executive shall be obligated to pay the Bank, within thirty (30) days after the date on which such judgment becomes final and not subject to
further appeal, all reasonable costs and legal fees paid or incurred by the Bank in connection with such dispute or controversy. 
  

	21.	NO CONFLICTS. 

Executive has heretofore advised the Bank and hereby represents that the execution and delivery of this Agreement and the performance of
the obligations hereunder do not and will not conflict with, or result in any default, violation or breach of any contract or agreement to which Executive is a party, or of any legal duty of Executive. 

 

	22.	SURVIVAL. 

 The
rights and obligations of Executive and the Bank under Sections 6, 8, 13, 17, 18, 19 and 20 of this Agreement shall survive the termination of Executive’s employment and the termination or expiration of this Agreement. All other rights and
obligations of Executive and the Bank shall survive the termination or expiration of this Agreement shall survive such termination only to the extent that they expressly contemplate future performance and remain unperformed. 

 

	23.	SUCCESSORS AND ASSIGNS. 

(a) Continuing Rights and Obligations. This Agreement shall be binding upon, and inure to the benefit of, Executive and his
heirs, executors, administrators and assigns, and the Bank and its successors and assigns. The Bank shall require any of its successors or assigns, whether resulting from a purchase, merger, consolidation, reorganization, conversion or a transfer of
all or substantially all of its business or assets, to expressly and unconditionally to assume and agree to perform its obligations under this Agreement, in the same manner and to the same extent that it would be required to perform such obligations
if no such succession or assignment had occurred. 
 (b) Payments to Estate or Trust. Any amounts due Executive
hereunder shall be paid to Executive’s estate in the event of Executive’s death except as expressly provided herein; provided that, notwithstanding the foregoing, Executive may, in his discretion, provide for the payment of some or all of
such amounts to a trust established by Executive. In the event that Executive desires that such amounts be paid to a trust, Executive shall notify the Bank of such intention in writing and comply with any requirements of applicable law. 

 

	24.	CODE SECTION 409A 

(a) To the extent that any of the terms and conditions contained herein which were modified by this amended and restated agreement
constitute an amendment or modification of the time or manner of payment under a non-qualified deferred compensation plan (as defined 

 

 20 

 
under Code Section 409A), then to the extent necessary under the transitional guidance under Internal Revenue Service Notice 2007-86, this Agreement constitutes an amendment to, and a new
election under, such deferred compensation plan, in order to properly modify the time or manner of payment consistent with such guidance. 

(b) It is intended that the Agreement shall comply with the provisions of Code Section 409A and the Treasury regulations
relating thereto so as not to subject Executive to the payment of additional taxes and interest under Code Section 409A. In furtherance of this intent, this Agreement shall be interpreted, operated and administered in a manner consistent with
these intentions, and to the extent that any regulations or other guidance issued under Code Section 409A would result in the Executive being subject to payment of additional income taxes or interest under Code Section 409A, the parties
agree to amend the Agreement to maintain to the maximum extent practicable the original intent of the Agreement while avoiding the application of such taxes or interest under Code Section 409A. 

(c) Notwithstanding any provision in the Agreement to the contrary if, as of the effective date of Executive’s termination of
employment, he is a “Specified Employee,” then, only to the extent required pursuant to Section 409A(a)(2)(B)(i), payments due under this Agreement which are deemed to be deferred compensation shall be subject to a six (6) month
delay following the Executive’s separation from service. For purposes of Code Section 409A, all installment payments of deferred compensation made hereunder, or pursuant to another plan or arrangement, shall be deemed to be separate
payments and, accordingly, the aforementioned deferral shall only apply to separate payments which would occur during the six (6) month deferral period and all other payments shall be unaffected. All delayed payments shall be accumulated and
paid in a lump-sum catch-up payment as of the first day of the seventh-month following separation from service (or, if earlier, the date of death of the Executive) with all such delayed payments being credited with interest (compounded monthly) for
this period of delay equal to the prime rate in effect on the first day of such six-month period. Any portion of the benefits hereunder that were not otherwise due to be paid during the six-month period following the termination shall be paid to the
Executive in accordance with the payment schedule established herein. 
 (d) The term
“Specified Employee” shall mean any person who is a “key employee” (as defined in Code Section 416(i) without regard to paragraph (5) thereof), as determined by the Bank based upon the 12-month period ending on
each December 31st (such 12-month period is referred
to below as the “identification period”). If Executive is determined to be a key employee under Code Section 416(i) (without regard to paragraph (5) thereof) during the identification period he shall be treated as a Specified
Employee for purposes of this Agreement during the 12-month period that begins on the April 1 following the close of such identification period. For purposes of determining whether Executive is a key employee under Code Section 416(i),
“compensation” shall mean Executive’s W-2 compensation as reported by the Bank for a particular calendar year. 

[Remainder of the page intentionally left blank] 

 

 21 

 IN WITNESS WHEREOF, BankFinancial, F.S.B. has caused this
Agreement to be executed by its duly authorized officers and directors, and Executive has signed this Agreement as of this
6th day of May, 2008. 

 

							
	BANKFINANCIAL, F.S.B.	 		 	EXECUTIVE
				
	By:	 	 /s/ F. Morgan Gasior
	 		 	 /s/ John Manos

		 		 		 	John Manos
	Its:	 	 Chief Executive Officer
	 		 	

  

 22Employment Agreement dated May 5, 2009

 Exhibit 10.1 

 

 

 A Cancer Therapeutics & Diagnostics Company 

445 Northern Blvd. Suite 24, Great Neck NY 11021 

phone: (516) 482 1200 fax: (516) 482 3848 

www.neogenixoncology.com 

Dr. Myron Arlen 
 81 Wensley Drive

 Great Neck, NY 11021 
  

	 	Re:	Employment Agreement 

 Dear Myron:

 This letter dated May 5, 2009 is to confirm our understanding with respect to your employment by Neogenix Oncology, Inc.
or any present or future parent, subsidiary or affiliate thereof (collectively, the “Company”). The terms and conditions agreed to in this letter are hereinafter referred to as the “Agreement.” In consideration of the mutual
promises and covenants contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby mutually acknowledged, we have agreed as follows: 

1. Employment. 
 (a)
Subject to the terms and conditions of this Agreement, the Company will employ you, and you will be employed by the Company, as Chief Executive Officer (“CEO”), reporting only to the Board of Directors (the “Board”); provided you
will transition from the position of CEO to the position of Executive Chairman of the Board and Director of Scientific and Medical Affairs by no later than April 30, 2010. You will have the responsibilities, duties and authority commensurate
with the position of CEO, and perform such other services of an executive nature as may be assigned to you by the Board from time to time. The principal location at which you will perform such services will be the Company’s facility located in
New York. 
 (b) Devotion to Duties. For so long as you are employed hereunder, you will devote substantially all of your
business time and energies to the business and affairs of the Company, provided that nothing contained in this Section 1(b) will be deemed to prevent or limit your right to manage your personal investments on your own personal time, including,
without limitation, the right to make passive investments in the securities of (i) any entity which you do not control, directly or indirectly, and which does not compete with the Company, or (ii) any publicly held entity so long as your
aggregate direct and indirect interest does not exceed three percent (3%) of the issued and outstanding securities of any class of securities of such publicly held entity, and provided, further that nothing contained in this Agreement will be
deemed to prohibit you from continuing to serve in the Surgical Oncology Division of North Shore Hospital so long as such activity does not violate Sections 5, 6 and 7 of this Agreement. 

 2. Term of Employment. 

(a) Term; Termination. Subject to the terms hereof, your employment hereunder will commence on May 5, 2009 (the
“Commencement Date”) and will continue until April 30, 2012; provided that if neither you nor the Company provides the other with written notice of intent to terminate the employment relationship during the period beginning
February 1, 2012 and ending March 31, 2012, your employment hereunder shall continue for one (1) additional year. The same notice arrangement and schedule shall apply in any subsequent years. 

Your employment hereunder will terminate upon the first to occur of the following: 

 

	 	(i)	Immediately upon your death; 

  

	 	(ii)	By the Company: 

(A) By written notice to you effective the date of such notice, following your failure, due to illness, accident or any
other physical or mental incapacity, to perform the essential functions of your position for an aggregate of ninety (90) business days within any period of one hundred eighty (180) consecutive business days during the term hereof as
determined by a physician selected by you (“Disability”), provided that if applicable law provides any provision regarding disability that is more favorable to you than that set forth herein, such more favorable provision will govern;

 (B) By written notice to you effective the date of such notice, for Cause (as defined below); or 

(C) By written notice to you effective thirty (30) days after the date of such notice and subject to Section 4
hereof, without Cause; or 
  

	 	(iii)	By you: 

 (A) At
any time by written notice to the Company effective thirty (30) days after the date of such notice; or 

(B) By written notice to the Company for Good Reason (as defined below) effective the date of such notice. 

(b) Definition of “Cause”. For purposes of this Agreement, “Cause” means (i) your commission of a felony,
(ii) your willful disloyalty or deliberate dishonesty to the Company, (iii) the commission by you of an act of fraud or embezzlement against the Company, or (iv) a material breach by you of any material provision of this Agreement
which breach is not cured within thirty (30) days after delivery to you by the Company of written notice of such breach, provided that if such breach is not capable of being cured within such thirty (30) day period, you will have a
reasonable additional period to cure such breach but only if you promptly commence and continue good faith efforts to cure such breach. Cause shall not exist unless at least two thirds of the Board has voted in support of such determination. With
respect to any such determination, the Board will act fairly and in utmost good faith and will give you and your counsel an opportunity to appear and be heard at a meeting of the Board before the Board’s determination becomes final. 

 

 2 

 (c) Definition of “Good Reason”. For purposes of this Agreement, a
“Good Reason” means any of the following, provided you inform the Company in writing of such and state your intent to end your relationship with the Company for such reason and the Company shall not within thirty (30) days of such
notice remedy the condition: 
 (i) A change in the principal location at which you provide services to the Company to a
location more than twenty-five (25) miles from the prior location, without your prior written consent; 
 (ii) A material
adverse change by the Company in your duties, authority or responsibilities as CEO of the Company or, following the transition set forth in 1(a) above, as Executive Chairman of the Board and Director of Scientific and Medical Affairs, which
causes your position with the Company to become of less responsibility or authority than your position as of immediately following the Commencement Date or immediately following said transition, as the case may be, provided that such change is not
in connection with a termination of your employment hereunder by the Company; 
 (iii) A change in the lines of reporting such
that you no longer report to the Board; 
 (iv) The assignment to you of duties not commensurate or consistent with your
position as CEO of the Company, or, following the transition set forth in 1(a) above, as Executive Chairman of the Board and Director of Scientific and Medical Affairs, without your prior written consent; 

(v) A material reduction in your compensation or other benefits except such a reduction in connection with a general reduction in
compensation or other benefits of all senior executives of the Company; 
 (vi) A material breach of this Agreement by the
Company that has not been cured within thirty (30) days after written notice thereof by you to the Company; 
 (vii) A
Change of Control (as defined in Section 2(d) below) of the Company; or 
 (viii) Failure by the Company to obtain the
assumption of this Agreement by any successor to the Company. 
 (d) Definition of “Change of Control” For
purposes of this Agreement, a Change of Control means that any of the following events has occurred: 
 (i) Any person (as such
term is used in Section 13(d) of the Securities Exchange Act of 1934 (the “Exchange Act”)), other than the Company, any employee benefit plan of the Company or any entity organized, appointed or established by the Company for or
pursuant to the terms of any such plan, together with all “affiliates” and “associates” (as such terms are defined in Rule 12b-2 under the Exchange Act) becomes the beneficial owner or owners (as defined in Rule I 3d-3 and 13d-5
promulgated under the Exchange Act), directly or indirectly (the “Control Group”), of more than fifty percent (50%) of the outstanding equity securities of the Company, or otherwise becomes entitled, directly or indirectly, to vote
more than fifty percent (50%) of the voting power entitled to be cast at elections for directors (“Voting 

 

 3 

 
Power”) of the Company, provided that a Change of Control will not have occurred if such Control Group acquired securities or Voting Power solely by purchasing securities from the Company,
including, without limitation, acquisition of securities by one or more third party investors such as venture capital investor(s); 

(ii) A consolidation or merger (in one transaction or a series of related transactions) of the Company pursuant to which the holders of
the Company’s equity securities immediately prior to such transaction or series of related transactions would not be the holders, directly or indirectly, immediately after such transaction or series of related transactions of more than fifty
percent (50%) of the Voting Power of the entity surviving such transaction or series of related transactions; 
 (iii) The
sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all of the assets of the Company; or 

(iv) The liquidation or dissolution of the Company or the Company ceasing to do business. 

3. Compensation. 
 (a)
Base Salary. The Company will pay you a base salary at the annual rate of three hundred thousand dollars ($300,000) until July 1, 2009, at which time it shall be increased to three hundred sixty thousand dollars ($360,000) (the
“Base Salary”). The Base Salary will be reviewed no less frequently than annually and may be adjusted upward at the Company’s discretion. The Base Salary will be payable in substantially equal installments in accordance with the
Company’s payroll practices as in effect from time to time. The Company will deduct from each such installment any amounts required to be deducted or withheld under applicable law or under any employee benefit plan in which you participate.

 (b) Annual Bonus. In the Company’s sole discretion, assuming you are employed by the Company as of the last day
of the relevant calendar year, you shall be eligible for an annual bonus of up to fifty percent (50%) of your Base Salary for the year that is ending (the “Annual Bonus”). Any Annual bonus awarded shall be paid no later than sixty
(60) days following the last day of the calendar year in which it was earned. 
 (c) Vacation. You will be entitled
to paid vacation in each calendar year and paid holidays and personal days in accordance with the Company’s policies for its senior executives as in effect from time to time, but not less than twenty (20) days paid vacation in each
calendar year. Accrued unused vacation may be carried over from year to year. 
 (d) Fringe Benefits; Perquisites. You
will be entitled to participate in the same manner as other senior executives of the Company in any and all employee benefit plans which the Company provides or may establish for the benefit of its senior executives generally (including, without
limitation, group life, disability, medical, dental and other insurance, tax benefit and planning services, 401(k), retirement, pension, profit-sharing and similar plans) (collectively, the “Fringe Benefits”). In addition, throughout your
employment, the Company shall provide you with a luxury car for which the monthly payments (not including any business travel expenses reimbursed pursuant to subparagraph (e), below) would be up to one thousand five hundred dollars ($1,500) per
month if on a sixty (60) month lease. The Company shall pay such amounts directly to the lessor of the car. 
  

 4 

 (e) Reimbursement of Expenses. The Company will reimburse you for all ordinary and
reasonable out-of-pocket business expenses that are incurred by you in furtherance of the Company’s business in accordance with the Company’s policies with respect thereto as in effect from time to time. 

(f) Stock Options. In the sole discretion of the Board, you shall be eligible for a stock option grant each year you are employed
by the Company (each an “Annual Stock Option Grant”). Any Annual Stock Option Grant shall be subject to Board approval, the execution of a formal option agreement provided by the Company and the terms and conditions of the relevant stock
plan. 
 4. Severance Compensation. 

(a) Definition of Accrued Obligations. For purposes of this Agreement, “Accrued Obligations,” means (i) the portion
of your Base Salary as has accrued prior to any termination of your employment with the Company and has not yet been paid, (ii) an amount equal to the value of your accrued unused vacation days, (iii) the amount of any Annual Bonus earned
and accrued but not yet paid and (iv) the amount of any expenses properly incurred by you on behalf of the Company prior to any such termination and not yet reimbursed. 

(b) Death or Disability. If your employment hereunder is terminated as a result of your death or Disability: 

(i) The Company will pay the Accrued Obligations to you (or your estate) promptly following such termination. 

(ii) The Company will continue to pay you (or your estate) an amount equal to the Base Salary at the rate in effect at
the date of such termination in accordance with Section 3(a) of this Agreement for the period commencing on the date of such termination and ending on the three (3) month anniversary of the termination date. 

(iii) The Company will continue to provide you or your covered beneficiaries with health insurance for so long as it is obligated to
continue payments equal to the Base Salary pursuant to Section 4(b)(ii) above, subject to applicable law and the terms of the respective policies. 

(c) Termination for Cause or in the Absence of a Good Reason. If your employment hereunder is terminated either by the Company for
Cause or by you in the absence of a Good Reason, the Company will pay the Accrued Obligations to you promptly following such termination. 

(d) Termination Without Cause or Due to Non-Renewal by the Company, or for Good Reason by You. If your employment hereunder is
terminated either by the Company without Cause or by you for a Good Reason and subject to your execution in form satisfactory to the Company (and submitted so as to be effective no later than seventy (70) days following such termination) of a
general release of claims against the Company, its officers, directors, employees, agents, subsidiaries and affiliates in a form provided by the Company: 

(i) The Company will pay the Accrued Obligations to you promptly following such termination. 

 

 5 

 (ii) The Company will pay you an amount equal to the greater of the Base Salary at the rate
in effect at such termination in accordance with Section 3(a) of this Agreement for a twelve (12) period or the period remaining prior to April 30, 2012, with such amount payable in accordance with the Company’s normal payroll
schedule over the course of such period. 
 (iii) The Company will continue to provide you with health insurance for so long as
it is obligated to continue payments equal to the Base Salary pursuant to Section 4(d)(ii) above if you make an effective COBRA election, and provided if the duration of the base salary payments exceeds eighteen (18) months, the Company
will make monthly payments in lieu of paying such premiums for the remainder of the applicable period, subject to applicable law and the terms of the respective policies. 

(e) Payment in Lieu of Notice. In its sole discretion, the Company may, during any period of notice relating to termination,
require you to: (i) be transferred to alternative duties to be performed either at your principal office location or your residence, at the Company’s discretion; (ii) not attend your usual place of work or any other Company premises;
and/or (iii) not make contact with any employees, agents, vendors or clients of the Company, except as directed by the Company. 

(f) No Duty to Mitigate. Notwithstanding any other provision of this Agreement, (i) you will have no obligation to mitigate
your damages for any breach of this Agreement by the Company or for any termination of this Agreement, whether by seeking employment or otherwise and (ii) the amount of any benefit due to you after the date of such termination pursuant to this
Agreement will not be reduced or offset by any payment or benefit that you may receive from any other source. 
 5. Prohibited Competition
and Solicitation. 
 (a) Certain Acknowledgements and Agreements. 

(i) You recognize and acknowledge the competitive and proprietary nature of the business of the Company. 

(ii) You acknowledge and agree that a business will be deemed competitive with the Company if it engages in a line of business in which
it performs any of the services, researches, develops or manufactures or sells any products provided or offered by the Company or under development by the Company, or any similar products or products fulfilling the same function, whether or not
similar, in the Company’s Field of Interest (such businesses to be referred to as “Competitive Businesses”). The phrase, “Field of Interest,” currently means the use of monoclonal antibody products for the diagnosis and
therapy of types of cancer related to the Hollinshead antigens. In the event the Company adopts a new definition of Field of Interest, such new definition shall be binding upon you ten (10) days after written notice to you of such change unless
you notify the Company in writing that you do not agree to such change. 
 (iii) You further acknowledge that, while you are
employed hereunder, the Company will furnish, disclose or make available to you Confidential Information (as defined below) related to the Company’s business and that the Company may provide you with unique and specialized training. You also
acknowledge that such Confidential Information and such training have been developed and will be developed by the Company through the expenditure by the Company of substantial time, effort and money and that all such Confidential Information and
training could be used by you to compete with the Company. 
  

 6 

 (iv) For purposes of this Agreement, “Confidential Information,” means
confidential and proprietary information of the Company, whether in written, oral, electronic or other form, including but not limited to, information and facts concerning business plans, research, trials, advisers, customers, future customers,
suppliers, licensors, licensees, partners, investors, affiliates or others, training methods and materials, financial information, sales prospects, client lists, inventions, or any other scientific, technical or trade secrets of the Company or of
any third party provided to you or the Company under a condition of confidentiality, provided that Confidential Information will not include information that is (1) in the public domain other than through any fault or act by you, (2) known
to you prior to its disclosure to you in the course of your employment hereunder, or (3) lawfully disclosed to you by a source other than the Company which source has a legal right to disclose such information. 

(b) Non-Competition; Non-Solicitation. During the period while you are employed hereunder and for a period of one (1) year
following the termination of your employment hereunder for any reason you will not, without the prior written consent of the Company: 

(i) For yourself or on behalf of any other, directly or indirectly, either as principal, agent, stockholder, employee, consultant,
representative or in any other capacity, own manage, operate or control, or be concerned, connected or employed by, or otherwise associate in any manner with, engage in or have a financial interest in any business whose primary line of business is
in the Field of Interest, or in any other business in which you have any direct operating or scientific responsibility in the Field of Interest anywhere in the world (the “Restricted Territory”), except that nothing contained herein shall
preclude you from purchasing or owning stock in any such competitive business if such stock is publicly traded, and provided that your holdings do not exceed three (3%) percent of the issued and outstanding capital stock of such business; or

 (ii) Either individually or on behalf of or through any third party, solicit, divert or appropriate or attempt to solicit,
divert or appropriate, for the purpose of competing in the Field of Interest with the Company or any present or future parent, subsidiary or other affiliate of the Company which is engaged in the Field of Interest, any joint venture or collaborative
research partners, customers or patrons of the Company, or any prospective customers or patrons with respect to which the Company has developed or made a presentation for the use or exploitation of products or processes in the Field of Interest (or
similar offering of services), located within the Restricted Territory; or 
 (iii) Either individually or on behalf of or
through any third party to (A) hire any person who is or has been in the three (3) months prior to such activity employed or otherwise engaged by the Company, (B) solicit, entice or persuade or attempt to solicit, entice or persuade
any person who is or has been in the three (3) months prior to such activity employed or otherwise engaged by the Company to leave the service of the Company or (C) solicit, entice or persuade or attempt to solicit, entice or persuade any
person who is or has been in the three (3) months prior to such activity employed or otherwise engaged by the Company become employed or otherwise engaged by you or any entity other than the Company. 

 

 7 

 6. Protected Information. You will at all times, both during the period while you are employed
hereunder and after the termination of your employment hereunder for any reason, maintain in confidence and will not, without the prior written consent of the Company, use, except in the course of performance of your duties for the Company or by
court order, disclose or give to others any Confidential Information. Upon the termination of your employment hereunder for any reason, you will return to the Company all tangible Confidential Information and copies thereof (regardless of how such
Confidential Information or copies are maintained). 
 7. Ownership of Ideas, Copyrights and Patents. 

(a) Property of the Company. All ideas, discoveries, creations, manuscripts and properties, innovations, improvements, know-how,
inventions, designs, developments, apparatus, techniques, methods, biological processes, cell lines, laboratory notebooks and formulae (collectively the “Inventions”) which may be used in the business of the Company, whether patentable,
copyrightable or not, which you may conceive (except in conjunction with permitted government activity), reduce to practice or develop while you are employed hereunder, alone or in conjunction with another or others, and whether at the request or
upon the suggestion of the Company or otherwise, will be the sole and exclusive property of the Company, and that you will not publish any of the Inventions without the prior written consent of the Company. You hereby assign to the Company all of
your right, title and interest in and to all of the foregoing. 
 (b) Cooperation. At any time during your employment
hereunder or after the termination of your employment hereunder for any reason, you will make reasonable efforts to cooperate with the Company and its attorneys and agents in the preparation and filing of all papers and other documents as may be
required to perfect the Company’s rights in and to any of such Inventions, including, but not limited to, joining in any proceeding to obtain letters patent, copyrights, trademarks or other legal rights with respect to any such Inventions in
the United States and in any and all other countries, provided that the Company will bear the expense of such proceedings, and that any patent or other legal right so issued to you personally will be assigned by you to the Company or its designee
without charge by you. The Company will reimburse you for reasonable expenses incurred by you in connection with the performance of your obligations under this Section 7 and will compensate you at a mutually agreeable rate for any substantial
time commitment that is required following the termination of your employment relationship with the Company. 
 (c) Licensing
and Use of Innovations. With respect to any Inventions, and work of any similar nature (from any source), whenever created, which you have not prepared or originated in the performance of your employment, but which you provide to the Company or
incorporate in any Company product or system, you hereby grant to the Company a royalty-free, fully paid-up, non-exclusive, perpetual and irrevocable license throughout the world to use, modify, create derivative works from, disclose, publish,
translate, reproduce, deliver, perform, dispose of, and to authorize others so to do, all such Inventions. You will not include in any Inventions you deliver to the Company or use on its behalf, without the prior written approval of the Company, any
material which is or will be patented, copyrighted or trademarked by you or others unless you provide the Company with the written permission of the holder of any patent, copyright or trademark owner for the Company to use such material in a manner
consistent with then-current Company policy. 
  

 8 

 (d) Prior Inventions. Listed on Exhibit 7(d) to this Agreement are any and all
Inventions in which you claim or intend to claim any right, title and interest (collectively, “Prior Inventions”), including, without limitation, patent, copyright and trademark interests, which to the best of your knowledge will be or may
be delivered to the Company in the course of your employment, or incorporated into any Company product or system. You acknowledge that your obligation to disclose such information is ongoing during the period that you provide services to the
Company. 
 8. Records. Upon termination of your employment hereunder for any reason or for no reason, you will deliver to the Company
promptly any property of the Company which may be in your possession, including products, materials, memoranda, notes, records, reports or other documents or photocopies of the same. 

9. General. 
 (a)
Notices. All notices, requests, consents and other communications hereunder will be in writing, will be addressed to the receiving party’s address set forth above or to such other address as a party may designate by notice hereunder, and
will be either (i) delivered by hand, (ii) sent by overnight courier, or (iii) sent by registered or certified mail, return receipt requested, postage prepaid. All notices, requests, consents and other communications hereunder will be
deemed to have been given either (i) if by hand, at the time of the delivery thereof to the receiving party at the address of such party set forth above, (ii) if sent by overnight courier, on the next business day following the day such
notice is delivered to the courier service, or (iii) if sent by registered or certified mail, on the fifth business day following the day such mailing is made. 

(b) Entire Agreement. This Agreement embodies the entire agreement and understanding between the parties hereto with respect to
the subject matter hereof and supersedes all prior oral or written agreements and understandings relating to the subject matter hereof. No statement, representation, warranty, covenant or agreement of any kind not expressly set forth in this
Agreement will affect, or be used to interpret, change or restrict, the express terms and provisions of this Agreement. 
 (c)
Modifications and Amendments. The terms and provisions of this Agreement may be modified or amended only by written agreement executed by the parties hereto. 

(d) Waivers and Consents. The terms and provisions of this Agreement may be waived, or consent for the departure therefrom
granted, only by written document executed by the party entitled to the benefits of such terms or provisions. No such waiver or consent will be deemed to be or will constitute a waiver or consent with respect to any other terms or provisions of this
Agreement, whether or not similar. Each such waiver or consent will be effective only in the specific instance and for the purpose for which it was given, and will not constitute a continuing waiver or consent. 

(e) Assignment. The Company may assign its rights and obligations hereunder to any person or entity that succeeds to all or
substantially all of the Company’s business or that aspect of the Company’s business in which you are principally involved. You may not assign your rights and obligations under this Agreement without the prior written consent of the
Company. 
  

 9 

 (f) Benefit. All statements, representations, warranties, covenants and agreements in
this Agreement will be binding on the parties hereto and will inure to the benefit of the respective successors and permitted assigns of each party hereto. Nothing in this Agreement will be construed to create any rights or obligations except among
the parties hereto, and no person or entity will be regarded as a third-party beneficiary of this Agreement. 
 (g) Governing
Law. This Agreement and the rights and obligations of the parties hereunder will be construed in accordance with and governed by the law of New York, without giving effect to the conflict of law principles thereof. 

(h) Jurisdiction, Venue and Service of Process. Any legal action or proceeding with respect to this Agreement that is not subject
to arbitration pursuant to Section 10(i) below may be brought in the courts of New York or of the United States of America for the Southern District of New York. By execution and delivery of this Agreement, each of the parties hereto accepts
for itself and in respect of its property, generally and unconditionally, the exclusive jurisdiction of the aforesaid courts. 

(i) Arbitration. Any controversy, dispute or claim arising out of or in connection with this Agreement, other than a controversy,
dispute or claim arising under Section 5, 6 or 7 hereof, will be settled by final and binding arbitration to be conducted within thirty (30) miles of your primary office location pursuant to the national rules for the resolution of
employment disputes of the American Arbitration Association then in effect. The decision or award in any such arbitration will be final and binding upon the parties and judgment upon such decision or award may be entered in any court of competent
jurisdiction or application may be made to any such court for judicial acceptance of such decision or award and an order of enforcement. In the event that any procedural matter is not covered by the aforesaid rules, the procedural law of New York
will govern. Any disagreement as to whether a particular dispute is arbitrable under this Agreement shall itself be subject to arbitration in accordance with the procedures set forth herein. 

(j) Severability. The parties intend this Agreement to be enforced as written. However, (i) if any portion or provision of
this Agreement is to any extent be declared illegal or unenforceable by a duly authorized court having jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which
it is so declared illegal or unenforceable, will not be affected thereby, and each portion and provision of this Agreement will be valid and enforceable to the fullest extent permitted by law and (ii) if any provision, or part thereof, is held
to be unenforceable because of the duration of such provision, the geographic area covered thereby, or other aspect of the scope of such provision, the court making such determination will have the power to reduce the duration, geographic area of
such provision, or other aspect of the scope of such provision, and/or to delete specific words and phrases (“blue-penciling”), and in its reduced or blue-penciled form, such provision will then be enforceable and will be enforced.

 (k) Headings and Captions. The headings and captions of the various subdivisions of this Agreement are for convenience
of reference only and will in no way modify or affect the meaning or construction of any of the terms or provisions hereof 

(l) No Waiver of Rights, Powers and Remedies. No failure or delay by a party hereto in exercising any right, power or remedy under
this Agreement, and no course of dealing between the parties hereto, will operate as a waiver of any such right, power or remedy of the 

 

 10 

 
party. No single or partial exercise of any right, power or remedy under this Agreement by a party hereto, nor any abandonment or discontinuance of steps to enforce any such right, power or
remedy, will preclude such party from any other or further exercise thereof or the exercise of any other right, power or remedy hereunder. The election of any remedy by a party hereto will not constitute a waiver of the right of such party to pursue
other available remedies. No notice to or demand on a party not expressly required under this Agreement will entitle the party receiving such notice or demand to any other or further notice or demand in similar or other circumstances or constitute a
waiver of the rights of the party giving such notice or demand to any other or further action in any circumstances without such notice or demand. 

(m) Counterparts. This Agreement may be executed in two or more counterparts, and by different parties hereto on separate
counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. 

(n) Section 409A Compliance. The provisions of this Agreement are intended and shall be interpreted and administered so as to
not result in the imposition of additional tax or interest under Section 409A of the Internal Revenue Code where applicable. Without limiting the foregoing, this Agreement shall not be amended in a manner so as to result in the imposition of
such tax or interest, any reference to “termination of employment” or similar term shall mean an event that constitutes a “separation from service” within the meaning of Section 409, any reimbursement of expenses shall occur
no later than the end of the calendar year following the calendar year in which is the expense is incurred (or such earlier date as applies under the Company’s business expense reimbursement policy), and if at separation from service you are
considered a Specified Employee within the meaning of said Section 409A, then any payments hereunder that are nonqualified deferred compensation within the meaning of said Section 409A that are to be made upon separation from service shall
not commence earlier than six (6) months after the date of such separation from service, and any such amounts that would otherwise be paid to you within the first six months following the separation from service shall be accumulated and
paid in a lump sum six months and one day following the separation from service (or if you die during such six-month period, as soon as practical following the date of death) 

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 11 

 If the foregoing accurately sets forth our agreement, please so indicate by signing and
returning to us the enclosed copy of this letter. 
  

					
	Very truly yours,
	
	Neogenix Oncology, Inc.
		
	By:	 	 /s/ Peter Gordon

	Name:	 	Peter Gordon
	Title:	 	Chief Financial Officer

  

					
	Accepted and Approved
	
	 /s/ Myron Arlen

	Dr. Myron Arlen

  

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 Exhibit 7(d)—Prior Inventions 

 

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