Document:

Employment Agreement

 Exhibit 10.9 
  
 EMPLOYMENT AGREEMENT 
  
 THIS EMPLOYMENT AGREEMENT (the “Agreement”) is made as of the 22nd day of October, 2003 between Newton Trust Company, a commercial bank formed under the laws of the State of New Jersey (the “bank”) and Donald E.
Hinkel, Jr., (the “Executive”). 
  
 WHEREAS, the company
has asked the Executive to serve and the Executive wishes to serve, as the President & CEO of the Bank; and 
  
 WHEREAS, to retain the Executive’s services, the Bank and the Executive have agreed to enter into the Employment Agreement; 
  
 NOW, THEREFORE, in consideration of the mutual covenants and undertakings
made herein, the Bank and the Executive, each intending to be legally bound, hereby agree as follows: 
  
 1. Employment. The Bank hereby agrees to employ the Executive, and the Executive hereby accepts employment with the Bank, upon the terms and
conditions set forth herein. 
  
 2. Term of Employment.
Subject to the terms hereof the term of this agreement shall commence on the date hereof and shall continue until January 28, 2009 (the “Initial Term”). After the Initial Term, this Agreement shall continue for successive two (2) year
periods (each period hereafter referred to as the “Extended Term”), unless the Bank or the Executive shall provide the other party with written notice of an election not to extend the Agreement beyond the Initial Term or any Extended Term
at sixty (60) days prior to the 

 
last day of the Initial Term or Extended Term, as the case may be. (As used herein, the phrase “Term of Employment shall mean the Executive’s
employment with the Bank pursuant to this Agreement during the “Initial Term” and any “Extended Term”) 
  
 3. Position.  
  
 (a) The Executive shall be employed as the President & CEO of the bank, and shall perform such duties as may be assigned to the Executive from time to
time by the Board of Directors of the Bank or as may be set forth in the bylaws of the Bank (“Bylaws”), as the same may be amended from time to time. The Executive’s employment will be on a full time basis at the Bank’s offices
located in Newton, New Jersey, subject to such travel as may be required from time to time to perform Executive’s duties. The Executive further agrees to devote his full time and attention to the business of the Bank and to perform such duties
as may be required of him to the best of his abilities, and will not accept any other employment without the prior written consent of the Bank. 
  
 (b) The Board of Directors of the Bank shall nominate the Executive for election as director of the Bank at each annual meeting of stockholders of the
Bank during the Term of Employment. 
  
 4. Compensation.
The bank shall pay to the Executive compensation for his services during the Term of Employment as follows: 
  
 (a) The Executive shall be paid a salary of $125,000 per annum, which salary shall increase at the discretion of the Board of Directors of the
Bank. The salary shall be paid in accordance with the payroll policies of the Bank. 

 (b) The Executive shall be entitled to reimbursement for all proper business expenses incurred by him
with respect to the business of the Bank in the same manner and to the same extent as such expenses are reimbursed to other officers of the Bank. 
  
 (c) The Executive shall be eligible to receive discretionary annual cash incentive/bonus payments as authorized by the Board of Directors. 
  
 (d) Any other expenses related to his duties as President & CEO, such as
attendance at various seminars, conventions and /or similar functions, as found to be appropriate and necessary by the Executive Compensation Committee. 
  
 (e) The expenses incurred by the Executive shall be reviewed from time to time by the Executive Compensation Committee and reports, if required, will be
submitted to the Board of Directors. 
  
 5. Benefits. The
Executive shall be entitled to twenty (20) vacation days per annum. Personal and sick days will be in accordance with the policies of the Bank. Executive shall be entitled to any hospital, health, disability, medical, pension plans, 401K, Employment
Stock ownership plan (ESOP), etc. and any other benefits which are provided to other officers of the Bank from time to time. 
  
 6. Termination for Cause The Bank may terminate the Executive’s employment for Cause, upon written notice to the Executive which notice shall
specify the reasons for the termination. In the event of termination for Cause, the Executive shall not be entitled to any further payment of benefits under the Agreement other than salary accruing up to 

 
the date of termination. For purposes of the Agreement, “Cause” shall mean; (i) the willful or repeated failure by the Executive to perform his
duties hereunder or failure to abide by the policies set forth in the Employee Handbook, after at least one warning in writing from the Bank identifying any such failure occurring not less than forty-five (45) days prior to the date notice of
termination is given by the Bank pursuant to this section; (ii) the willful misconduct of the Executive in the performance of his duties hereunder; (iii) conviction of a crime (other than a minor traffic violation); (iv) habitual drunkenness and/or
drug abuse; (v) excessive absenteeism, other than for illness, after at least one warning in writing from the Bank; (vi) the unauthorized disclosure or use of any confidential information or proprietary data of the Bank, its parent, or its
subsidiaries; or (vii) the happening of any event or existence of any circumstances which would prevent the Executive from serving as a director of the Bank under Section 104 of the New Jersey Banking Act of 1948 (the Act), as the same may be
amended or modified, or any successor statutory or regulatory provision. For purposes of this section, no act or omission shall be deemed willfull if made in good faith and with a reasonable belief that the act or omission was in the best interests
of the Bank. 
  
 7. Disability. If during the Term of
Employment, the Executive shall become permanently disabled or is otherwise unable to perform his essential job functions hereunder with or without reasonable accommodation for six consecutive months, or for shorter periods aggregating six months,
in any twelve month period, the Bank may terminate the employment of the Executive hereunder upon written notice to the Executive. In such event, the Executive shall not be entitled to any further payments or 

 
benefits under this Agreement other than payments under any disability policy which the Bank may obtain for the benefit of its officers generally and salary
accruing up to the date of termination. 
  
 8. Death Benefits.
Upon the Executive’s death during the Term of Employment, the Executive’s estate shall be entitled to the proceeds of any life insurance policy then maintained by the Bank pursuant to Section 5; the Executive’s estate shall not be
entitled to any further payment or benefits other than salary and other benefits accrued up to the date of death. 
  
 9. Termination Without Cause. The Bank may terminate the Executive’s employment without Cause upon written notice to the Executive. If the
Bank terminates the Executive’s employment without Cause, the Bank shall, within 30 days following his termination pay the Executive a lump sum termination benefit (the “Severance Payment”) equal to two times the annual salary of the
Executive in effect at the time notice of termination was given. The “Severance Payment” shall be in addition to any salary accruing up to the date of termination. The Bank also shall continue to provide to the Executive the hospital,
health, disability and medical benefits which may be available from time to time to officers of the Bank, for a period of not less than 24 months from the date the Executive is terminated without Cause by the Bank. 
  
 The payment of the “Severance Payment” by the Bank is conditioned
upon the Executive resigning from all positions held as a director, officer and employee of Newton Financial Corporation, Newton Trust Company, and all their subsidiaries. 

 In the event the Executive’s employment hereunder shall be terminated by the Bank without Cause, the
Executive shall be obligated to promptly inform the Bank of any new employment. If the Executive’s new employment provides the Executive with hospital, health, disability and medical benefits which are equivalent to the benefits payable by the
Bank hereunder, the Bank may permanently reduce or terminate the duplicative benefits it is obligated to provide hereunder. The Executive shall not have a duty to mitigate the damages suffered by the Executive in connection with the termination by
the Bank of his employment without Cause. Except as set forth in this Section 9, the Executive shall not be entitled to any other payments or benefits following a termination without Cause. 
  
 10. Resignation. The Executive may resign from his employment with the
Bank hereunder at any time during the Term of Employment for any reason upon ten (10) days prior written notice. Except as provided in. Section 11 of the Agreement, upon resignation the executive shall not be entitled to any additional compensation
for the time after which he ceases to be employed by the Bank, and shall not be entitled to any of the other benefits provided hereunder. 
  
 11. Resignation Upon Change in Control. 
  
 (a) For purposes of this Section 11, a “Change in Control” shall mean any of the following: 
  
 (i) Any tender offer or merger (including any triangular merger),
consolidation, plan of exchange or other business combination (each of the following being referred to herein as a “Transaction”), as a result of the persons who were 

 
shareholders of the Bank immediately prior to the Transaction do not immediately thereafter own, in the aggregate, at least sixty (60%) of the outstanding
voting securities of the Bank, the acquiring entity, or the resulting or surviving entity (or of the parent of Bank) or such entity in the case of a triangular merger, as the case may be; 
  
 (ii) Any sale or other disposition of all or substantially all of the assets of the Bank to any entity of which less than
sixty percent (60%) of its outstanding voting securities is owned by persons who were shareholders of the Bank, or of which less than a majority of its Board of Directors consist of persons who were directors of the Bank immediately prior to the
disposition. 
  
 (b) The Executive may resign from his employment
with the Bank (or any successor bank) if, at any time after a Change in Control any of the following shall occur without the prior consent of the Executive: 
  
 (i) the assignment to the Executive of any duties inconsistent with, or the reduction of the powers or functions associated with, the Executive’s
position, duties and responsibilities with the Bank immediately prior to the Change in Control as set forth in the Bylaws; 
  
 (ii) the assignment to the Executive by the Bank or any successor to the Bank of a principal office for the performance of this duties hereunder which is
more than Forty (40) miles from the principal office of Executive immediately prior to the Change in Control; 
  
 (iii) the failure by the Bank or any successor to the Bank to continue in effect any employee benefit or bonus plan or arrangement in which the 

 
Executive was eligible to participate immediately prior to the Change in Control (except that the Bank or any successor to the bank may establish plans or
arrangement providing equivalent benefits), or the taking of any action which prevents the Executive’s participation in or reduces the Executive’s benefits under, any of the foregoing; 
  
 (iv) the failure by the Bank or any successor to the Bank to provide the
Executive the same number of paid vacation, sick and personal days to which the Executive was entitled immediately prior to the Change in Control; 
  
 (v) in the event of Change in Control due to the disposition of all or substantially all the assets of the Bank, the failure by the Bank to obtain an
assumption of the obligations of the Bank under this Agreement by the purchaser of such assets; or 
  
 (c) In the event the Executive shall resign from his employment, and all positions as an officer and director of Newton Financial Corporation, Newton
Trust Company and all their subsidiaries pursuant to this Section 11, the Executive shall be entitled to salary accruing up to the date of termination/resignation and a Severance Payment Equal to 2 Years annual salary at the Executive’s then
current annual salary at the time of Resignation. Such Severance Payment shall be paid within thirty (30) business days after the effective date of the Executive’s resignation and the Bank or successor Bank shall continue, for twenty four (24)
months, to provide to the Executive the hospital, health, disability and medical benefits which may be available from time to time to officers of the Bank in accordance with and subject to the limitations set forth in Section 9 hereof. 

 (d) Executive shall have no duty to mitigate the damages suffered by him in connection with his
resignation pursuant to the Section 11. Except as set forth in this Section 11, Executive shall be entitled to no other payments or benefits following his resignation. 
  
 12. Non-Disclosure; Non-Competition.  
  
 (a) Except as may be required in the course of his employment with the Bank and in pursuit of the business of the Bank or
any of its subsidiaries, the Executive shall not, at any time during or following the Term of Employment, disclose to any person or use any confidential information or proprietary data of the Bank, its parent, or any of its subsidiaries. The
Executive agrees that all information concerning the Bank’s relations with its customers is confidential information. The obligations of the Executive under this Section 12(a) shall survive the termination of the Executive’s employment
hereunder and the expiration of this Agreement. 
  
 (b) The
Executive agrees that in the event that this Agreement is terminated and the Executive shall be entitled to receive the Severance Payment as a result of such termination, the Executive will not, for a period of two years within a fifteen (15) mile
radius of any branch office of the Bank, engage in, or own, manage, operate, control, be employed by or participate in the ownership, management, operation or control of or otherwise be connected in any manner with any business which engages in, any
activity which is competitive with the business of the Bank or any of its subsidiaries as conducted on the date of such termination. 

 13. Waiver of Breach. The waiver by any party hereto of a breach of any provision of this
Agreement shall not operate nor be construed as a waiver of any subsequent breach, nor shall any waiver of any provision of this Agreement in any instance shall be deemed to be a waiver of any other provision in any other instance. 
  
 14. Arbitration. Any controversy or claim arising out of or relating
to the Agreement, or the breach thereof, except for a right to specific performance or injunctive relief to enforce the covenants contained in Paragraph 12, shall be settled by arbitration in accordance with the rules then in effect of the district
office of the American Arbitration Association (“AAA”) nearest to the main office of the Bank, and judgment upon the award rendered may be entered in any court having jurisdiction thereof, except to the extent that the parties may
otherwise reach a mutual settlement of such issue. Each party shall bear his or its own costs and expenses, including attorneys’ fees, incurred in connection with such dispute, proceedings or actions. 
  
 15. Representation. by Counsel. The Executive represents and warrants
to the Bank that he has been represented by legal counsel in connection with the preparation, negotiation and execution of the Agreement, and acknowledges and agrees with the Bank that Christopher D. Quinn has acted solely as counsel to the Bank in
connection with the preparation, negotiation and execution of this Agreement and not as counsel to the Executive. 
  
 16. Governing Law. The term of this Agreement shall be governed by, and interpreted and construed in accordance with, the laws of New Jersey
applicable to agreements made and fully to be performed in such state. 

 17. Entire Agreement:Amendment. This Agreement sets forth the entire understanding of the parties
hereto with respect to its subject matter and supersedes all prior agreements, negotiations and understandings, written or oral, with respect to matters covered hereby. The amendments or termination of this Agreement may be made only in a writing
executed by the Bank and the Executive, and no amendment or termination of this Agreement shall be effective unless and until made in such a writing. 
  
 18. Assignment. This Agreement is personal to the Executive and the Executive may not assign any of his rights or duties hereunder, but this
Agreement shall be enforceable by the Executive’s legal representatives, executors or administrators. This Agreement may be assigned by the Bank to any entity which acquires all or substantially all of the assets of the Bank existing at the
time of such acquisition, or with or into which the Bank is consolidated or merged. 
  
 19. Binding Effect. It is the expectation and intent of the parties hereto that this Agreement shall be binding upon, enforceable against, and inure to the benefit of, the Bank and its permitted successors and
assigns, and the Executive. In furtherance thereof, the Bank and the Executive expect and intend that the “Act”, including but not limited to Section 112 of the “Act”, does not limit or impair the obligation of the Bank (or any
successor or assign of the Bank) to make, or the right of the Executive to receive, any Severance Payment pursuant to this Agreement, and that pursuant to Section 24a of the “Act”, and the regulations promulgated pursuant thereto, the
obligation of the Bank to make any Severance Payment hereunder shall be binding upon and enforceable against the Bank and its successors and assigns to the same extent that such obligation would be enforceable against a national bank under federal
law. 

 20. Severability. The invalidity or unenforceability of any provision or provisions of this
Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. 
  
 21. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, and together shall
constitute one and the same instrument. 
  
 22. Guaranty.
Newton Financial Corporation executes this Agreement to Guaranty the performance of the Bank’s obligations under this Agreement. 
  
 IN WITNESS WEREOF, the Bank has caused this Agreement to be signed by its duly authorized officer, and the Executive has executed this Agreement, as of
the day and year first written above. 
  

					
	 Attest:
	 	 Newton Trust Company

			
	  

	 	 By:
	 	 /s/ Thomas J. Bain

	 	 	 	 	 Thomas J. Bain, Chairman

		
	 	 	 Newton Financial Corporation

			
	  

	 	 By:
	 	 /s/ Thomas J. Bain

	 	 	 	 	 Thomas J. Bain, Chairman

		
	  

	 	 /s/ Donald E. Hinkel, Jr.

	 	 	 Donald E. Hinkel, Jr., ExecutiveDirectors' Deferred Compensation Plan

 Exhibit 10.10 
  
 APPROVED BY THE BOARD OF DIRECTORS — MARCH 13, 1996 
  
 AMENDED AND APPROVED BY THE BOARD OF DIRECTORS – 
 October 6, 1999 
  
 AMENDED AND APPROVED BY THE BOARD OF DIRECTORS– 
 October 10, 2001 
  
 AMENDED AND APPROVED BY THE BOARD OF DIRECTORS – 
 June 9, 2004 
 (For directors retiring after June 9, 2004) 
  
 Lakeland Bancorp, Inc. 
  
 Directors’ Deferred Compensation Plan 

 TABLE OF CONTENTS 
  

							
	 ARTICLE I — PURPOSE AND SCOPE
	  	1
	 	  	1.1.	  	ESTABLISHMENT	  	1
	 	  	1.2.	  	PURPOSE	  	1
	 	  	1.3.	  	APPLICATION	  	1
	 	  	1.4.	  	SCOPE	  	1
		
	ARTICLE II – PARTICIPATION	  	2
	 	  	2.1.	  	ELIGIBILITY FOR PARTICIPATION	  	2
	 	  	2.2.	  	DURATION OF PARTICIPATION	  	2
		
	ARTICLE III – BENEFITS	  	3
	 	  	3.1.	  	ELIGIBILITY TO RECEIVE BENEFITS	  	3
	 	  	3.2.	  	AMOUNT OF BENEFIT	  	3
	 	  	3.3.	  	NORMAL RETIREMENT DATE	  	4
	 	  	3.4.	  	VESTING	  	4
		
	ARTICLE IV — PAYMENT OF BENEFITS	  	5
	 	  	4.1.	  	COMMENCEMENT OF BENEFITS	  	5
	 	  	4.2.	  	ALIENATION OF BENEFITS PROHIBITED	  	5
	 	  	4.3.	  	INCAPACITY	  	5
		
	ARTICLE V — GENERAL PROVISIONS	  	6
	 	  	5.1.	  	FUNDING	  	6
	 	  	5.2.	  	RIGHT TO AMEND, SUSPEND OR TERMINATE	  	6
	 	  	5.3.	  	EFFECT OF TERMINATION	  	6
	 	  	5.4.	  	RIGHTS TO BENEFITS	  	6
	 	  	5.5.	  	ADMINISTRATION OF THE PLAN	  	6
	 	  	5.6.	  	CONSTRUCTION	  	7
	 	  	5.7.	  	TITLES	  	7
	 	  	5.8.	  	IMPOSSIBILITY OF ACTION	  	7
	 	  	5.9.	  	SEPARABILITY	  	7
	 	  	5.10.	  	AUTHORIZED OFFICERS	  	7
	 	  	5.11.	  	CERTAIN RIGHTS AND LIMITATIONS	  	7
	 	  	5.12	  	CHANGE OF CONTROL	  	8&9

  

 ii 

 Directors’ Deferred Compensation Plan 
 As Amended June 9, 2004 
  
 ARTICLE I — PURPOSE AND SCOPE 
  

	1.1.	ESTABLISHMENT 

  
 Lakeland Bancorp, Inc. (hereinafter referred to as the (“Bancorp”)hereby establishes effective as of January 1, 1996, an unfunded Deferred
Compensation Plan for its eligible Directors and their beneficiaries as described herein which shall be known as the “Lakeland Bancorp Director Deferred Compensation Plan” (hereinafter referred to as the “Plan”).

  

	1.2.	PURPOSE 

  
 The purpose of this Plan is to defer compensation of the Directors of the Bancorp. All capitalized terms in the Plan shall have meaning ascribed to them
under the Plan, as the context of the Plan may require. 
  

	1.3.	APPLICATION OF THE PLAN 

  
 The terms of the Plan are applicable only to eligible Directors who are in the employ of the Bancorp on or after January 1, 1996. Any Director who retired
or whose relationship as director with the Bancorp was otherwise terminated prior to such date shall not be eligible to participate in the Plan. 
  

	1.4.	SCOPE 

  
 This Plan is designed to provide Directors of the Bancorp deferred compensation. Nothing herein contained, and no action taken pursuant to the provisions
of this Plan, shall create or be construed to create a fiduciary relationship between the Bancorp and any Director of the Bancorp, their surviving spouse or dependents, their estate or their beneficiaries or any other person. 
  
 Any reserves or liabilities set up on the Bancorp’s books of account
with respect to any benefits to be paid under this Plan shall continue for all purposes to be a part of the general funds or assets of the Bancorp. To the extent that any person acquires right to receive payments from the Bancorp under this Plan,
such right shall be no greater than the right of any unsecured general creditor of the Bancorp. 
  

 1 

 ARTICLE II — PARTICIPATION 
  

	2.1.	ELIGIBILITY FOR PARTICIPATION 

  
 Directors of the Bancorp who have five or more years of service including the years of service on the Lakeland Bank Board prior to the formation of
Lakeland Bancorp shall be eligible to participate in the Plan. The Board of Directors of the Bancorp shall, in its sole and absolute discretion, determine who is eligible to participate in the Plan. Decisions of the Board of Directors shall be
conclusive and binding on all persons. 
  

	2.2.	DURATION OF PARTICIPATION 

  
 A Director who becomes a Participant shall continue to be a Participant until the later of termination as a Director with the Bancorp or the date he or
she is no longer entitled to benefits under the Plan. 
  

 2 

 ARTICLE III — DEFERRED COMPENSATION 
  

	3.1	ELIGIBILITY TO RECEIVE DEFERRED COMPENSATION 

  
 The Bancorp shall pay deferred compensation with respect to each: 
  

	 	(a)	Retired Participant (including Participants who terminated for reasons other than retirement and who have qualified for his/her Vested benefit in the Deferred Compensation Plan);

  

	 	(b)	Surviving spouse receiving a Pre-Retirement Survivor deferred compensation under this Plan; 

  

	 	(c)	Spouse of a deceased Retired Participant receiving deferred compensation under this Plan in accordance with the form of payment in effect for such Participant;

  
 whose amount of deferred compensation,
determined in accordance with Section 3.2, is greater than $0. Such deferred compensation shall be paid directly to such Participant, or to the Participant’s Surviving Spouse from the general assets of the Bancorp. 
  

	3.2.	AMOUNT OF DEFERRED COMPENSATION 

  
 The amount of the deferred compensation shall be as follows: 
  
 A participant entitled to payment in accordance with Section 3.1(a) shall receive his deferred compensation in monthly, quarterly, or annual payments at
the discretion of the Director, payable for ten (10) years. Should death occur prior to ten (10) years of payments, the balance of payments shall be payable to the Director’s spouse. 
  

	 	•	 	$17,500 per year for 30 or more years of service as a Director 

  

	 	•	 	$15,000 per year for 25 but less than 30 years of service as a Director 

  

	 	•	 	$12,500 per year for 20 but less than 25 years of service as a Director. 

  

	 	•	 	$10,000 per year for 15, but less than 20, years of service as a Director. 

  

	 	•	 	$ 7,500 per year for 10, but less than 15, years of service as a Director. 

  

	 	•	 	$ 5,000 per year for 5 but less than 10, years of service as a Director. 

  

	 	•	 	$ 0 for less than 5 years of service. 

	

	

  

 3 

	3.3.	NORMAL RETIREMENT DATE 

  
 The Normal Retirement Date for a Director shall be the first of the month following the date at which the director shall have reached the age of 75 for
directors as of March 13, 1996 and 72 for subsequent directors. 
  

	3.4.	VESTING 

  
 Each Director shall, upon the completion of 5 or more years of service, be vested in deferred compensation as outlined in Section 3.2, payable beginning
the month following his/her termination as a Director. In the event of the death of a Vested Director prior to the commencement of payment of deferred compensation, such deferred compensation shall be payable to the Director’s spouse as if he
retired on the date of his death. 
  

 4 

 ARTICLE IV — PAYMENT OF DEFERRED COMPENSATION 
  

	4.1.	COMMENCEMENT OF PAYMENTS 

  
 The Deferred Compensation shall become payable to an eligible Director as of his/her termination as a Director. 
  

	4.2.	ALIENATION OF DEFERRED COMPENSATION PROHIBITED 

  
 No deferred compensation payable at any time under the Plan shall be subject in any manner to alienation, anticipation, sale, transfer, assignment,
pledge, attachment or encumbrance of any kind, except as required by law. Neither shall any deferred compensation payable at any time under the Plan be subject in any manner to the debts or liabilities of any person entitled to such benefit, nor
shall the Bancorp be required to make any payments toward such debts or liabilities. 
  

	4.3.	INCAPACITY 

  
 In the event that any deferred compensation hereunder is, or becomes, payable to a minor or to a person under legal disability, or to a person not
judicially declared incompetent but who by reason of illness or mental or physical disability is, in the opinion of the Bank, incapable of personally receiving and giving valid receipt of such payment, then, unless and until claim therefor shall
have been made by a duly appointed guardian or other legal representative of such person, the Bancorp may provide for such payment or any part thereof be made to any person or institution then contributing toward or providing for the care and
maintenance of such person. Any such payment shall be a payment for such person and a complete discharge of the liability of the Bancorp therefor. 
  

 5 

 ARTICLE V — GENERAL PROVISIONS 
  

	5.1.	FUNDING 

  
 The Deferred Compensation Plan is intended as an unfunded plan. The Bancorp intends to establish appropriate reserves on its books of account in
accordance with generally accepted accounting principles. In addition, the Bancorp may establish a Trust to hold assets of the Bancorp as a reserve for the discharge of the Bancorp’s obligation to Participants. In that event, such reserves
shall be, for all purposes, part of the general funds of the Bancorp and no Participant, eligible spouse or other person claiming a right under the Deferred Compensation Plan shall have any interest, right or title to such reserves. 
  

	5.2.	RIGHT TO AMEND, SUSPEND OR TERMINATE 

  
 The Bancorp reserves the right at any time and from time to time to amend, suspend or terminate the Deferred Compensation Plan by action of the Board of
Directors without the consent of any Participant, eligible beneficiary or other person claiming a right under the Plan. No amendment of the Plan shall reduce the benefits of any Participant below the amount which he or she has accrued as of the date
of termination. 
  

	5.3.	EFFECT OF TERMINATION 

  
 In the event that the Plan is terminated, benefits accrued by eligible Participants shall vest. There shall be no further accrual of benefits after the
date of Plan termination. 
  

	5.4.	RIGHTS TO BENEFITS 

  
 No person shall have any right to a benefit under the Plan except as such benefit has accrued to him or her in accordance with the terms of the Plan, and
then such right shall be no greater than the rights of any unsecured general creditor of the Bancorp. Notwithstanding any other provisions of this Plan, if a Director shall be terminated for reason of acts of fraud, dishonesty, larceny,
misappropriation or embezzlement committed against the Bancorp, all of such Director’s rights to benefits under this Deferred Compensation Plan shall be forfeited. 
  

	5.5.	ADMINISTRATION OF THE DEFERRED COMPENSATION PLAN 

  
 The Bancorp may establish a Committee to administer the Plan. Except as otherwise specifically provided in the Plan, the Committee shall be the
administrator of the Plan. The Committee shall have full authority to determine all questions arising in connection with the Plan including its interpretation may adopt procedural rules and may employ and rely on such legal counsel, consultants,
accountants and agents, as it may deem advisable to assist in the administration of the Plan. Decisions of the Committee shall be conclusive and binding on all persons. 
  

 6 

	5.6.	CONSTRUCTION 

  
 The provisions of the Plan shall be construed, administered and enforced according to the laws of the State of New Jersey. 
  

	5.7.	TITLES 

  
 The titles of the Articles and Sections herein are included for convenience of reference only and shall not be construed as a part of the Plan, or have
any effect on the meaning of the provisions hereof. Unless the context requires otherwise, the singular shall include the plural; the masculine gender shall include the feminine and vice versa; and such words as “herein”,
“hereinafter”, “hereof” and “hereunder” shall refer to this instrument as a whole and not merely to the subdivision in which such words appear. 
  

	5.8.	IMPOSSIBILITY OF ACTION 

  
 In case it becomes impossible for any fiduciary to perform any act under this Plan, that act shall be performed which in the judgment of such fiduciary
will most nearly carry out the intent and purposes of this Plan. All parties concerned shall be bound by any such acts performed under such conditions. 
  

	5.9.	SEPARABILITY 

  
 If any term or provision of this Plan as presently in effect or as amended from time to time, or the application thereof to any payments or circumstances,
shall to any extent be invalid or unenforceable, the remainder of the Plan, and the application of such term or provision to payments or circumstances other than those as to which it is invalid or unenforceable, shall not be affected thereby, and
each term or provision of the Plan shall be valid and enforced to the fullest extent permitted by law. 
  

	5.10.	AUTHORIZED OFFICERS 

  
 Whenever the Bancorp under the terms of the Plan is permitted or required to do or to perform any act or matter or thing, it shall be done and performed
by the duly authorized officer of the Bancorp or his designee. 
  

	5.11.	CERTAIN RIGHTS AND LIMITATIONS 

  
 The establishment of the Plan shall not be construed as conferring any legal rights upon any Director or other person for a continuation of employment,
nor shall it interfere with the rights of the Bancorp to terminate any Director and to treat him or her without regard to the effect that such treatment might have upon that Director’s participation in the Plan. 
  

 7 

	5.12.	CHANGE OF CONTROL 

  
 In the event of a “change of control” of the Bancorp as defined below, the director will be paid according to the schedule in paragraph 3.2 as
if the director had turned 75 on the date of change of control if he is no longer a director under the new control. If he or she remains as a director following “change of control” the deferred compensation will remain in effect and
continue as if there had been no change of control. 
  
 A
“Change in Control” shall mean any of the following: 
  

	 	(1)	a reorganization, merger, consolidation or sale of all or substantially all of the assets of the Bancorp, or a similar transaction in which the Bancorp is not the resulting entity;
or 

  

	 	(2)	individuals who constitute the new Board of the Bancorp cease for any reason to constitute a majority thereof; or 

  

	 	(3)	a change in control within the meaning of 12 C.F.R. § 225.2 (e) (1), as determined by the Board of Directors of the Bancorp; or 

  

	 	(4)	an event occurs of a nature that (i) would be required to be reported in response to Item I of the current report on Form 8-K, as in effect on the date hereof, pursuant to Section
13 or 15 (d) of the Securities Exchange Act of 1934 (the “Exchange Act”), or (ii) results in a change in control of the Bank within the meaning of the Rules and Regulations promulgated by the Board of Governors of the Federal Reserve
System or the Office of the Comptroller of the Currency, as in effect on the date hereof; or 

  

	 	(5)	without limitation, a change in control shall be deemed to have occurred at such time as any “person” (as the term is used in Section 13(d) and 14(d) of the Exchange Act)
other than the Bancorp is or becomes a “beneficial owner” (as defined in Rule 13(d) under the Exchange Act) directly or indirectly, of securities of the Bancorp representing 25% or more of the Bancorp’s outstanding securities
ordinarily having the right to vote at the election of directors (excluding any securities purchased by the Bancorp’s employee stock ownership plan and trust or any other employee benefit plan of the Bancorp established from time to time); or

  

	 	(6)	a proxy statement soliciting proxies from stockholders of the Bank is distributed by someone other than the current management of the Bancorp, seeking stockholder approval of a plan
of reorganization, merger or consolidation of the Bancorp or similar transaction with one or more corporations as a result of which the outstanding shares of the class of securities then subject to the plan or transaction are exchanged or converted
into cash or property or securities not issued by the Bancorp; or 

  

 8 

	 	(7)	a tender offer is made for 25% or more of the voting securities of the Bancorp and the shareholders owning beneficially or of record 25% or more of the outstanding securities of the
Bancorp have tendered or offered to sell their shares pursuant to such tender offer and such tendered shares have been accepted by the tender offeror. 

  

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