Document:

Exhibit 10.7

 Exhibit 10.7 
  
 OCEAN CITY HOME BANK 
 DIRECTORS’ DEFERRED COMPENSATION PLAN 
  
 ARTICLE I 
 PURPOSE 
  
 The purpose of the Ocean City Home Bank Directors’ Deferred Compensation Plan (hereinafter referred to as the
“Plan”) is to provide funds at termination of service for Directors (and their beneficiaries) of Ocean City Home Bank. It is intended that the Plan will aid in retaining and attracting Directors of exceptional ability. 
  
 ARTICLE II 
 DEFINITIONS 
  
 For the purpose of this Plan, the following words and phrases shall have the meanings indicated, unless the context clearly indicates otherwise: 
  
 “Bank” means Ocean City Home Bank, Ocean City, New Jersey. 
  
 “Beneficiary” means the person, persons or entity designated by the Participant, or as provided in Article
VII, to receive any benefits payable under the Plan. 
  
 “Board” means the Board of Directors of the Bank. 
  
 “Declared Rate” means with respect to any calendar month two (2) percentage points over the prime rate as published in the Wall Street Journal. The Board shall establish the Declared Rate
effective as of January 1 of each Plan Year. Such Declared Rate, once established, shall be used for all interest determinations during such Plan Year. 
  
 “Deferral Benefit” means the benefit payable to a Participant or his Beneficiary on his death or termination of service as a Director.

  
 “Deferred Benefit Account” means the account
maintained on the books of the Bank for each Participant pursuant to Article V. A Participant’s Deferred Benefit Account shall be utilized solely as a device for the measurement and determination of the amounts to be paid to the Participant
pursuant to this Plan. A Participant’s Deferred Benefit Account shall not constitute or be treated as a trust fund of any kind. 
  
 “Designation of Form for Payment” means the agreement filed by a Participant designating the manner in which the Participant’s
Deferred Benefit Account balance shall be paid to the Participant or his beneficiary. 
  
 “Determination Date” means the date on which the amount of a Participant’s Deferred Benefit Account is determined as provided in Article V hereof. The last day of each calendar month shall be the
Determination Date. 
  
 “Director” means an
active member of the Board of Directors of the Bank. 
  
 “Fee” or “Fees” means any cash compensation paid to a Director for his services as a Director. 
  
 “Participant” means a Director designated as a Participant in Appendix A to the Plan. 
  

 “Participation Agreement” means the agreement filed by a Participant prior to the
beginning of the first period for which the Participant’s Fees are to be deferred pursuant to the Plan and the Participation Agreement. 
  
 “Plan Year” means a twelve month period commencing January 1st and ending the following December 31st. The first Plan Year shall commence
April 1, 2003 and end December 31, 2003. 
  
 ARTICLE III

 PARTICIPATION 
  
 3.1 PARTICIPATION. Except as otherwise provided in Article X, participation in the Plan shall be limited to Directors who are designated
Participants on Appendix A. A Participant’s Participation Agreement must be filed prior to the December 15th immediately preceding the Plan Year in which the Participant’s participation under the agreement will commence, and the election
to participate shall be effective on the first day of the Plan Year following receipt by the Bank of a properly completed and executed Participation Agreement (including the Designation of Form of Payment). In the event that an individual first
becomes eligible to participate during the course of a Plan Year or in connection with the first Plan Year, a Participation Agreement must be filed no later than 30 days following notification of the individual by the Board of eligibility to
participate or the Plan effective date, and such Participation Agreement shall be effective only with regard to Fees earned or payable following the filing of the Participation Agreement with the Board. 
  
 3.2 AMOUNT OF DEFERRAL. A Participant may elect in any
Participation Agreement to defer all, or any percentage (in increments of five (5%) percent), of his Fees. A Participant’s election to defer his Fees shall be irrevocable for the applicable Plan Year upon the filing of the respective
Participation Agreement; provided, however, that the deferral of Fees under any Participation Agreement may be suspended or amended as provided in Sections 10.1 or 10.2. 
  
 ARTICLE IV 
 DEFERRED FEES 
  
 4.1 ELECTIVE DEFERRED
FEES. The amount of Fees that a Participant elects to defer under this Plan shall be credited by the Bank to the Participant’s Deferred Benefit Account as the Participant’s Fees are payable. 
  
 4.2 VESTING OF DEFERRED BENEFIT ACCOUNT. A Participant shall be
100% vested in the Deferred Benefit Account at all times. 
  
 ARTICLE V 
 DEFERRED BENEFIT ACCOUNT 
  
 5.1 DETERMINATION OF ACCOUNT. Each Participant’s Deferred Benefit Account as of each Determination Date
shall consist of the balance of the Participant’s Deferred Benefit Account as of the immediately preceding Determination Date plus the Participant’s elective deferred Fees withheld since the immediately preceding Determination Date
pursuant to Section 4.1. The Deferred Benefit Account of each Participant shall be reduced by the amount of all distributions, if any, made from such Deferred Benefit Account since the preceding Determination Date. 
  
 5.2 CREDITING OF ACCOUNT. As of each Determination Date, the
Participant’s Deferred Benefit Account shall be increased by the amount of interest earned since the preceding 

  

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Determination Date. Interest shall be based upon the applicable Declared Rate. Interest shall be based upon the average daily balance of the
Participant’s Deferred Benefit Account since the last preceding Determination Date, but after the Deferred Benefit Account has been adjusted for any contributions or distributions to be credited or deducted for such day. 
  
 5.3 STATEMENT OF ACCOUNTS. The Board shall submit to each
Participant, within 120 days after the close of each Plan Year, a statement in such form as the Board deems desirable, setting forth the balance to the credit of such Participant in his Deferred Benefit Account as of the last day of the preceding
Plan Year. 
  
 ARTICLE VI 
 BENEFITS 
  
 6.1 TERMINATION OF SERVICE AS DIRECTOR. Upon any termination of service of the Participant with the Bank, the Bank shall pay to the
Participant a Deferral Benefit equal to the amount of his Deferred Benefit Account. 
  
 6.2 FORM OF BENEFIT PAYMENT. 
  

	 	a)	Upon the occurrence of an event described in Section 6.1, the Bank shall pay the Participant’s Deferred Benefit Account in the form of (i) a lump sum or (ii) an annual payment
of a fixed amount which shall amortize the Deferred Benefit Account balance in equal installments of principal and interest over a period of five (5), ten (10) or fifteen (15) years as designated by the Participant on his or her Designation of Form
for Payment. For purposes of determining the amount of the annual payment, the rate of interest shall be the average of the Declared Rate credited to the Participant’s Deferred Benefit Account for the three (3) years preceding the initial
payment (or such lesser number of years in which the Participant participated in the Plan). 

  

	 	b)	A Participant who is actively serving as a Director may change the form in which his benefits shall be paid by filing a revised Designation of Form for Payment indicating such
change at least one (1) calendar year prior to the date payments are to commence. Such Designation of Form for Payment shall be irrevocable beginning one (1) calendar year prior to the date payments are to commence. No changes in the form of benefit
payment shall be permitted following a Participant’s termination of service. 

  
 6.3 COMMENCEMENT OF PAYMENTS. 
  

	 	a)	Payments due under Section 6.1 shall commence not later than ninety (90) days following the date the Participant terminates service as a Director and continue in accordance with the
Participant’s election under Section 6.2. 

  

	 	b)	All installment payments made pursuant to this Section 6.3 shall be payable annually beginning with a single payment on the date specified in Section 6.3(a) and continuing each
anniversary of such date until fully paid in accordance with the Participant’s election. 

  

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 ARTICLE VII 
 BENEFICIARY DESIGNATION 
  
 7.1 BENEFICIARY DESIGNATION. Each Participant shall have the right, at any time, to designate any person or persons as his Beneficiary or Beneficiaries (both principal as well as contingent) to wham payment under this Plan
shall be paid in the event of his death prior to complete distribution to Participant of the benefits due him under the Plan. Any Participant Beneficiary Designation shall be made in a written instrument filed with the Board and shall be effective
only when received in writing by the Board. 
  
 7.2
AMENDMENTS. Any Beneficiary designation may be changed by a Participant by the written filing of such change on a form prescribed by the Board. The filing of a new Beneficiary designation form will cancel all Beneficiary designations
previously filed. 
  
 7.3 NO PARTICIPANT
DESIGNATION. If a Participant fails to designate a Beneficiary as provided above, or if all designated Beneficiaries predecease the Participant, then Participant’s designated Beneficiary shall be deemed to be the person or persons
surviving him in the first of the following classes in which there is a survivor, share and share alike: 
  

	 	a)	The surviving spouse; 

  

	 	b)	The Participant’s children, except that if any of the children predecease the Participant but leave issue surviving, then such issue shall take by right of representation the
share their parent would have taken if living; 

  

	 	c)	The Participant’s Estate. 

  
 7.4 EFFECT OF PAYMENT. The payment to the deemed Beneficiary shall completely discharge Bank’s obligations under this Plan. 

 
 ARTICLE VIII 
 ADMINISTRATION AND CLAIM 
  
 8.1 ADMINISTRATION. 
  
 The administration of the Plan, the exclusive power to interpret it, and the responsibility for carrying out its provisions are vested in the Board. The Board shall have the authority to resolve any question under the Plan. The
determination of the Board as to the interpretation of the Plan or any disputed question shall be conclusive and final to the extent permitted by applicable law. 
  
 8.2 CLAIMS PROCEDURES. 
  

	 	a)	Claims for benefits under the Plan shall be submitted in writing to the Chairman of the Board. 

  

	 	b)	If any claim for benefits is wholly or partially denied, the claimant shall be given written notice within a reasonable period following the date on which the claim is filed, which
notice shall set forth: 

  

	 	i)	the specific reason or reasons for the denial; 

  

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	 	ii)	specific reference to pertinent Plan provisions on which the denial is based; 

  

	 	iii)	a description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary; and

  

	 	iv)	an explanation of the Plan’s claim review procedure. 

  
 If the claim has not been granted and written notice of the denial of the claim is not furnished in a timely manner following the date on which the claim
is filed, the claim shall be deemed denied for the purpose of proceeding to the claim review procedure. 
  

	 	c)	The claimant or his authorized representative shall have 30 days after receipt of written notification of denial of a claim to request a review of the denial by making written
request to the Chairman of the Board, and may review pertinent documents and submit issues and comments in writing within such 30-day period. 

  
 After receipt of the request for review, the Board shall, in a timely manner, render and furnish to the claimant a written decision, which shall include
specific reasons for the decision and shall make specific references to pertinent Plan provisions on which it is based. Such decision by the Board shall not be subject to further review. If a decision on review is not furnished to a claimant, the
claim shall be deemed to have been denied on review. 
  

	 	d)	No claimant shall institute any action or proceeding in any state or federal court of law or equity or before any administrative tribunal or arbitrator for a claim for benefits
under the Plan until the claimant has first exhausted the provisions set forth in this section. 

  
 ARTICLE IX 
 AMENDMENT AND TERMINATION OF PLAN 
  
 9.1 AMENDMENT. The Board may at any time amend the Plan in
whole or in part, provided, however, that no amendment shall be effective to decrease or restrict any Deferred Benefit Account maintained pursuant to any existing deferral commitment under the Plan. Any change in the Declared Pate shall be
prospective only and shall not become effective until the first day of the calendar year which follows the adoption of the amendment. 
  
 9.2 TERMINATION OF PLAN. The Board may at any time terminate the Plan if, in its judgment, the tax, accounting, or other effects of the
continuance of the Plan, or potential payments thereunder would not be in the best interests of the Bank. 
  
 ARTICLE X 
 SPECIAL TRANSITION RULES 
  
 Notwithstanding anything in this Plan to the contrary, the following shall
apply with respect to Participants who previously executed a “Joinder Agreement(s)” with respect to their participation in the predecessor to this Plan, the Ocean City Home Savings and Loan Savings Association Deferred Compensation Master
Agreement, as amended (the “Prior Plan”) and to certain other persons in pay status under the Prior Plan who are identified in Appendix A: 
  
 Effective as of the effective date of this Plan, the Board has frozen the crediting of deferrals and interest creditable thereon under the Prior Plan.
Each Participant in this Plan who maintained an account 

  

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balance under the Prior Plan shall be credited with their account balance under the Prior Plan as of March 31, 2003 as the opening balance of their Deferred
Benefit Account under this Plan. In addition, there shall be transferred to Deferred Benefit Accounts under this Plan the account balances under the Prior Plan of each person (whether a participant or a beneficiary) who, as of the effective date of
this Plan, was in pay status with respect to any deferrals made under the Prior Plan. The execution of a Participation Agreement by a person referenced in the preceding two sentences shall be deemed, for all purposes, their consent to the actions
contemplated by this paragraph. Upon the execution of a Participation Agreement by such person, the rights of a Participant or other person maintaining an account balance under this Plan and the obligations of the Bank with respect to such account
balance shall be determined solely by reference to the provisions of this Plan; provided, however, that (i) an election made in a “Joinder Agreement” executed under the Prior Plan with respect to the form of distribution, of benefits
attributable to an account balance transferred from the Prior Plan shall continue in effect and be deemed an election under this Plan unless modified in accordance with the provisions of this Plan and (ii) and interest credited to such balances
pending distribution shall reflect the Declared Rate in effect under this Plan. 
  
 ARTICLE XI 
 MISCELLANEOUS 
  
 11.1 UNSECURED GENERAL CREDITOR. Participants and their Beneficiaries, heirs, successors and assigns shall
have no secured interest or claim in any property or assets of the Bank, nor shall they be beneficiaries of, or have any rights, claims or interests in any life insurance policies, annuity contracts or the proceeds therefrom owned or which may be
acquired by the Bank (“Policies”). Such Policies or other assets of the Bank shall not be held under any trust for the benefit of Participants, their Beneficiaries, heirs, successors or assigns, or held in any way as collateral security
for the fulfilling of the obligations of Bank under this Plan. Any and all of the Bank’s assets and Policies shall be, and remain, the general, unpledged, unrestricted assets of the Bank. The Bank’s obligation under the Plan shall be
merely that of an unfunded and unsecured promise of the Bank to pay money in the future. The Bank shall have no obligation under this Plan with respect to individuals other than that Bank’s employees, directors or consultants. 
  
 11.2 NON-ASSIGNABILITY. Neither a Participant nor any other
person shall have any right to commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber, transfer, hypothecate or convey in advance of actual receipt the amounts, if any, payable hereunder, or any part thereof, which are,
and all rights to which are, expressly declared to be unassignable and non-transferable. No part of the amounts payable shall, prior to actual payment, be subject to seizure or sequestration for the payment of any debts, judgments, alimony or
separate maintenance owed by a Participant or any other person, nor be transferable by operation of law in the event of a Participant’s or any other person’s bankruptcy or insolvency. 
  
 11.3 NOT A CONTRACT OF EMPLOYMENT. The terms and conditions of
this Plan shall not be deemed to constitute a contract of employment between the Bank and the Participant, and the Participant (or his Beneficiary) shall have no rights against the Bank except as may otherwise be specifically provided herein.
Moreover, nothing in this Plan shall be deemed to give a Participant the right to be retained in the service of the Bank or to interfere with the right of the Bank to discipline or discharge him at any time. 
  
 11.4 TERMS. Whenever any words are used herein in the
masculine, they shall be construed as though they were used in the feminine in all cases where they would so apply; and wherever any words are used herein in the singular or in the plural, they shall be construed as though they were used in the
plural or the singular, as the case may be, in all cases where they would so apply. 
  

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 11.5 CAPTIONS. The captions of the articles, sections and paragraphs of this Plan are for
convenience only and shall not control or affect the meaning or construction of any of its provisions. 
  
 11.6 GOVERNING LAW. The provisions of this Plan shall be construed and interpreted according to the laws of the State of New Jersey.

  
 11.7 VALIDITY. In case any provision of this
Plan shall be held illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but this Plan shall be construed and enforced as if such illegal and invalid provision had never been inserted herein.

  
 11.8 NOTICE. Any notice or filing required or
permitted to be given to the Board under the Plan shall be sufficient if in writing and hand delivered, or sent by registered or certified mail, to any member of the Board, the President of the Bank or the Bank’s Statutory Agent. Such notice
shall be deemed given as of the date of delivery or, if delivery is made by mail as of three (3) days following the date shown on the postmark or on the receipt for registration or certification. 
  
 11.9 SUCCESSORS. The provisions of this Plan shall bind and
inure to the benefit of the Bank and its successors and assigns. The term successors as used herein shall include any corporate or other business entity which shall, whether by merger, consolidation, purchase or otherwise acquire all or
substantially all of the business and assets of the Bank and successors of any such corporation or other business entity. 
  
 11.10 EFFECTIVE DATE. The effective date of this Plan is April 1, 2003. 
  

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 Appendix A 
  

	I.	Participants 

  
 [INSERT] 
  

	II.	Other persons Described in Article X 

  
 [INSERT] 
  

 8Exhibit 10.8

 Exhibit 10.8 
  
 OCEAN CITY HOME BANK 
 SALARY CONTINUATION AGREEMENT 
  
 THIS AGREEMENT (“Agreement”) is made this 18th day of December, 2002, by and between OCEAN CITY HOME BANK, a federal mutual savings bank located in Ocean City, New Jersey (the “Bank”), and STEVEN E.
BRADY (the “Executive”). 
  
 INTRODUCTION

  
 To encourage the Executive to remain an employee of the
Bank, the Bank is willing to provide salary continuation benefits to the Executive. The Bank will pay the benefits from its general assets. 
  
 AGREEMENT 
  
 The Executive and the Bank agree as follows: 
  
 Article 1 
 Definitions

  
 1. 1 Definitions. Whenever used in this Agreement,
the following words and phrases shall have the meanings specified: 
  
 “Benefit Amount” means $221,831. 
  
 “Cause” shall mean termination because of the 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 infractions) or a final cease-and-desist order. 
  
 “Change in Control” means any of the following: 
  

	 	(i)	there occurs a “change in control” of the Bank, as defined or determined either by the Bank’s primary banking regulator or under regulations promulgated by it.

  

	 	(ii)	as a result of, or in connection with, any merger or other business combination, sale of assets or contested election, wherein the persons who were Directors of the Bank before such
transaction or event cease to constitute a majority of the Board of Directors of the Bank or any successor to the Bank. 

  

	 	(iii)	the Bank transfers substantially all of its assets to another corporation or entity which is not an affiliate of the Bank. 

  

	 	(iv)	the Bank is merged or consolidated with another corporation or entity and, as a result of such merger or consolidation, less than 60% of the equity interest in the surviving or
resulting corporation is owned by the former shareholders or depositors of the Bank. 

  
 A Change of Control shall not occur solely as a result of a conversion of the Bank from the mutual stock form of organization (“Conversion”) or
reorganization of the Bank into the mutual holding company form of ownership (“Reorganization”). 
  
 “Code” means the Internal Revenue Code of 1986, as amended. 
  
 “Disability” means a physical or mental condition which constitutes a disability within the meaning of
Section 22(e)(3) of the Internal Revenue Code of 1986, as amended. 
  
 “Normal Retirement Age” means the Executive’s 60th birthday. 
  
 “Normal Retirement Date” means the later of the Normal Retirement Age or the date of the Executive’s termination of employment. 
  
 “Plan Year” means the calendar year. 
  
 “Year of Service” means each twelve (12) month period after the effective date of this Plan during which
the Executive is employed on a full-time basis by the Bank, with a minimum of 1,000 hours of service, inclusive of any approved leaves of absence. 
  
 Article 2 
 Lifetime Benefits

  
 2.1 Normal Retirement Benefit. If the Executive
terminates employment on or after the Normal Retirement Age for reasons other than death, the Bank shall pay to the Executive the benefit described in this Section 2. 1. 
  
 2.1.1 Amount of Benefit. The monthly benefit under this Section 2.1 is one-twelfth of the Benefit
Amount. 
  
 2.1.2 Payment of Benefit. The
Bank shall pay the benefit to the Executive on the first day of each month commencing with the month following the Normal Retirement Date and continuing for 179 additional monthly payments. 
  
 2.2 Early Termination Benefit. Upon the Executive’s termination
of employment before the Normal Retirement Date for reasons other than Cause, death or Disability, the Bank shall pay to the Executive the benefit described in this Section 2.2. 
  
 2.2.1 Amount of Benefit. The benefit under this Section 2.2 is the benefit calculated under Section
2.1.1 as if the date of the Executive’s termination of employment were the Normal Retirement Date, multiplied by a fraction. The numerator of the fraction is the Executive’s actual Years of Service from and after the effective date 

  

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of this Agreement and the denominator is the Executive’s Years of Service determined as if the Executive had continued employment to the anniversary of
the effective date occurring in the Plan Year in which the Executive will attain age 60. 
  
 2.2.2 Payment of Benefit. The Bank shall pay the benefit to the Executive on the first day of each month commencing with the month
following the Executive’s Termination of Employment and continuing for 179 additional monthly payments. 
  
 2.3 Disability Benefit. Upon the Executive’s termination of employment before the Normal Retirement Age due to the Executive’s
Disability, the Bank shall pay to the Executive the benefit described, in this Section 2.3. 
  
 2.3.1 Amount of Benefit. The benefit under this Section 2.3 is the benefit calculated under Section 2.1.1 as if the date of the
Executive’s termination of employment were the Normal Retirement Date. 
  
 2.3.2 Payment of Benefit. The Bank shall pay the benefit to the Executive on the first day of each month commencing with the month following the month in which Executive attains his Normal Retirement Age and
continuing for 179 additional monthly payments. [TO BE COORDINATED WITH SUPPLEMENTAL DISABILITY COVERAGE.] 
  
 2.4 Change in Control Benefit. Upon the Executive’s termination of employment before the Normal Retirement Age following a Change in Control,
the Bank shall pay to the Executive the benefit described, in this Section 2.3. 
  
 2.4.1 Amount of Benefit. The benefit under this Section 2.3 is the benefit calculated under Section 2.1.1 as if the date of the
Executive’s termination of employment were the Normal Retirement Date. 
  
 2.4.2 Payment of Benefit. The Bank shall pay the benefit to the Executive on the first day of each month commencing with the month following the date of the Executive’s termination of employment and
continuing for 179 additional monthly payments. 
  
 2.5
Notwithstanding any provision of this Agreement to the contrary, the Bank shall not pay any benefit under this Agreement if the Bank terminates the Executive’s employment for Cause. 
  
 Article 3 
 Death Benefits 
  
 3.1 Death During Active
Service. If the Executive dies while in the active service of the Bank, the Bank shall pay to the Executive’s beneficiary the benefit described in this Section 3. 1. 
  

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 3. 1. 1 Amount of Benefit. The annual benefit under Section 3.1 is the lifetime
benefit that, would have been paid to the Executive under Section 2.1 calculated as if the date of the Executive’s death were the Normal Retirement Date: 
  

3.1.2 Payment of Benefit. The Bank shall pay the benefit to the Beneficiary on the first of each month commencing with the month
following the Executive’s death and continuing for 179 additional monthly payments. 
  
 3.2 Death During Benefit Period. If the Executive dies after benefit payments have commenced under this Agreement but before receiving all such payments or if the Executive had terminated employment due to
Disability prior to his death and before Normal Retirement Age, the Bank shall pay the remaining benefits to the Executive’s designated beneficiary at the same time they would have been paid to the Executive had the Executive survived;
provided, however, that if the Executive was entitled to a benefit under Section 2.3 of this Agreement, such benefit shall be payable to the Executive’s designated beneficiary on the first day of the month commencing with the month following
the Executive’s death. 
  
 3.3 Coordination of
Benefits. Notwithstanding anything in this Agreement to the contrary, no benefit shall be payable under this Article 3 or otherwise if, on the date of the Executive’s death, Executive is eligible to receive benefits under a split dollar
life insurance agreement between the Executive and the Bank which is in effect on such date. 
  
 Article 4 
 Beneficiaries 
  
 4.1 Beneficiary Designations. The Executive shall designate a beneficiary by filing a written designation with the
Bank. The Executive may revoke or modify the designation at any time by filing a new designation. However, designations will only be effective if signed by the Executive and accepted by the Bank during the Executive’s lifetime. The
Executive’s beneficiary designation shall be deemed automatically revoked if the beneficiary predeceases the Executive, or if the Executive names a spouse as beneficiary and the marriage is subsequently dissolved. If the Executive dies without
a valid beneficiary designation, all payments shall be made to the Executive’s estate. 
  
 4.2 Facility of Payment. If a benefit is payable to a minor, to a person declared incompetent, or to a person incapable of handling the disposition of his or her property, the Bank may pay such benefit to the
guardian, legal representative or person having the care or custody of such minor, incompetent person or incapable person. The Bank may require proof of incompetence, minority or guardianship as it may deem appropriate prior to distribution of the
benefit. Such distribution shall completely discharge the Bank from all liability with respect to such benefit. 
  
 Article 5 
 Claims and Review Procedures 
  
 5.1 Claims Procedure. The Bank shall notify the Executive or
Executive’s beneficiary in writing, within ninety (90) days of his or her written application for benefits, of his 

  

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or her eligibility or ineligibility for benefits under the Agreement. If the Bank determines that, the Executive or Executive’s beneficiary is not
eligible for benefits or full benefits, the notice shall set forth (1) the specific reasons for such denial, (2) a specific reference to the provisions of the Agreement on which the denial is based, (3) a description of any additional information or
material necessary for the claimant to perfect his or her claim, and a description of why it is needed, and (4) an explanation of the Agreement’s claims review procedure and other appropriate information as to the steps to be taken if the
Executive or Executive’s beneficiary wishes to have the claim reviewed. If the Bank determines that there are special circumstances requiring additional time to make a decision, the Bank shall notify the Executive or Executive’s
beneficiary of the special circumstances and the date by which a decision is expected to be made, and may extend the time for up to an additional ninety-day period. 
  
 5.2 Review Procedure. If the Executive or Executive’s beneficiary is determined by the Bank entitled to greater
or different benefits, the Executive or Executive’s beneficiary shall have the opportunity to have such claim reviewed by the Bank by filing a petition for review with the Bank within sixty (60) days after receipt of the notice issued by the
Bank. Said petition shall state the specific reasons which the Executive or Executive’s beneficiary believes entitle him or her to benefits or to greater or different benefits. Within sixty (60) days after receipt by the Bank of the petition,
the Bank shall afford the Executive or Executive’s beneficiary (and counsel, if any) an opportunity to present his or her position to the Bank orally or in writing, and the Executive or Executive’s beneficiary (or counsel) shall have the
right to review the pertinent documents. The Bank shall notify the Executive or Executive’s beneficiary of its decision in writing within the sixty-day period, stating, specifically the basis of its decision, written in a manner calculated to
be understood by the Executive or Executive’s beneficiary and the specific provisions of the Agreement on which the decision is based. If, because of the need for a hearing, the sixty-day period is not sufficient, the decision may be deferred
for up to another sixty-day period at the election of the Bank, but notice of this deferral shall be given to the Executive or Executive’s beneficiary. 
  
 Article 6 
 Amendments and Termination

  
 This Agreement may be amended or terminated only by a
written agreement signed by the Bank and the Executive. 
  
 Article 7 
 Miscellaneous 
  
 7.1 Binding Effect. This Agreement shall bind the Executive and the Bank, and beneficiaries, survivors, executors, administrators and transferees.
The Bank or any parent of the Bank, acting on behalf of the Bank, shall require any successor or assignee, whether direct or indirect, by purchase, merger, consolidation or otherwise, to all or substantially all the business or assets of the Bank,
expressly and unconditionally to assume and agree to perform the Bank’s obligations under this Agreement, in the same manner and to the same extent that the Bank would be required to perform if no such succession or assignment had taken place.

  

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 7.2 No Guarantee of Employment. This Agreement is not an employment policy or contract. It does
not give the Executive the right to remain an employee of the Bank, nor does it interfere with the Bank’s right to discharge the Executive. It also does not require the Executive to remain an employee nor interfere with the Executive’s
right to terminate employment at any time. 
  
 7.3
Non-Transferability. Benefits under this Agreement cannot be sold, transferred, assigned, pledged, attached or encumbered in any, manner. 
  
 7.4 Tax Withholding. The Bank shall withhold any taxes that are required to be withheld from the benefits provided under this Agreement.

  
 7.5 Applicable Law. The Agreement and all rights
hereunder shall be governed by the law the State of New Jersey, except to the extent preempted by the laws of the United States of America. 
  
 7.6 Unfunded Arrangement. The Executive and beneficiary are general unsecured creditors of the Bank for the payment of benefits under this
Agreement. The benefits represent the mere promise by the Bank to pay such benefits. The rights to benefits are not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by
creditors. Any insurance on the Executive’s life is a general asset of the Bank to which the Executive and beneficiary have no preferred or secured claim. 
  

7.7 Entire Agreement. This Agreement constitutes the entire agreement between the Bank and the Executive as to the subject matter hereof. No
rights are granted to the Executive by virtue of this Agreement other than those specifically set forth herein. Executive acknowledges and agrees that this Agreement supercedes and replaces in its entirety the Restated Executive Supplemental
Retirement Income Agreement, between the Executive and the Bank and the related Joinder Agreement, which Executive acknowledges is terminated as of the date of this Agreement. 
  
 7.8 Administration. The Bank shall have powers which are necessary to administer this Agreement, including but not
limited to: 
  
 7.7.1 Interpreting the
provisions, of the Agreement; 
  
 7.7.2
Establishing and revising the method of accounting for the Agreement; 
  
 7.7.3 Maintaining a record of benefit payments; and 
  
 7.7.4 Establishing rules and prescribing any forms necessary or desirable to administer Agreement. 
  

 6 

 7.9 Payment of Legal Fees. All reasonable legal fees paid or incurred by the Executive pursuant to
any dispute or question of interpretation relating to this Agreement shall be paid or reimbursed by the Bank, if the Executive is successful pursuant to a legal judgment, arbitration or settlement. 
  
 7.10 Special Change of Control Requirements. In the event of a Change
in Control of the Bank or a parent of the Bank, the Bank shall make contributions to an irrevocable trust established with respect to this Agreement in an amount sufficient to fund the Executive’s benefits under this Agreement (as determined by
the Bank’s independent accountants), and, thereafter, the trustee of such trust shall be responsible for the payment to the Executive of any benefits to which the Executive is or becomes entitled to receive under this Agreement; provided,
however, that to the extent the assets of the trust are at anytime insufficient to fund the Executive’s benefits, the payment of such benefits shall remain an obligation of the Bank (or any successor thereto). 
  
 IN WITNESS WHEREOF, the Executive and a duly authorized Bank officer have
signed this Agreement, all as of the date written above. 
  

			
	OCEAN CITY HOME BANK
		
	 By:
	 	 /s/ Roy Gillian

		
	 Title:
	 	 Chairperson of the Board

	
	 /s/ Steven E. Brady

	Steven E. Brady

  

 7 

 FIRST AMENDMENT 
 TO THE 
 OCEAN CITY HOME BANK 
 SALARY CONTINUATION AGREEMENT 
  
 The Ocean City Home Bank Salary Continuation Agreement (the “Agreement”) with Steven E. Brady is hereby amended as follows, effective as of November 26, 2003. 
  
 First Change 
  
 The following new definition is hereby added to Section 1.1: 
  
 “Contingent Disability Trust” means a trust created for the
benefit of the Executive for the purposes stated in Section 2.3. 
  
 Second Change 
  
 Section 2.3 of the
Agreement, the Disability Benefit, is hereby deleted in its entirety and replaced with the following new Section 2.3: 
  
 2.3. Disability. Notwithstanding any provision of this Agreement to the contrary, in the event the Executive terminates employment
with the Bank due to a Disability, the following shall apply with respect to benefits payable to the Executive under this Agreement: 
  

	 	2.3.1	Disability Benefit Upon Termination of Employment Prior to Normal Retirement Age. Upon the Executive’s termination of employment due to a Disability before Normal
Retirement Age, the Bank shall deposit into the Contingent Disability Trust the greater of the amount which has been or should have been accrued on the Bank’s financial statements, pursuant to generally accepted accounting principles, from the
effective date of the Agreement through the Executive’s termination date (with appropriate adjustment for the year in which termination occurs for accruals during the period since the date of the Bank’s last audited financial statements)
to reflect the liability associated with the Bank’s obligation to the Executive under the Agreement. Except as provided in Section 2.3.3, no further benefits shall be payable to the Executive under this Agreement during the period of
Disability. 

  

	 	2.3.2	Disability Continuing After Normal Retirement Age. If the Executive remains disabled on the date he attains Normal Retirement Age, then except as provided in Section
2.3.4, this Agreement shall automatically terminate and the Executive shall not be entitled to further benefits under this Agreement. 

  

	 	2.3.3	Return to Employment Following Disability. In the event the Executive returns to employment following a period of Disability, the Executive shall be entitled to
receive a retirement benefit pursuant to Section 2.1 or 2.2 hereof that is reduced by amounts payable from the Contingent Disability Trust in accordance with its terms. 

  

	 	2.3.4	Benefit Restoration Obligation. In the event that the Executive is Disabled as of his Normal Retirement Date and the assets of the Contingent Disability Trust are
insufficient to provide the Executive with an annual benefit equal to the Benefit Amount for the period specified in Section 2.1.2, the Bank shall deposit in the Contingent Disability Trust an additional amount (the “Additional Deposit”)
which, when added to the existing assets of the Trust, will be sufficient to provide the Executive with an annual pre-tax benefit equal to the Benefit Amount for the applicable period. For purposes of this Section 2.3.4, (i) the sufficiency of the
assets of the Contingent Disability Trust and the amount of the Additional Deposit, if any, shall be determined by an independent actuary retained by the Bank, using the interest rate factor in effect for calculations under Section 417(e) of the
Code (or any successor provision of the Code) for the month in which the Executive attains his Normal Retirement Age and (ii) the Additional Deposit, if any, shall be calculated by assuming that the Executive is subject to the highest marginal
federal, state and local tax rates then in effect. The Additional Deposit, if any, shall be made to the Contingent Disability Trust not later than thirty (30) days after the date the Executive attains his Normal Retirement Age.

  

 2 

 IN WITNESS WHEREOF, the parties to the Agreement have executed this First Amendment, effective as
of the date hereof. 
  

			
	OCEAN CITY HOME BANK
		
	 By:
	 	 /s/ Emily J. Walker

	
	 /s/ Steven E. Brady

	Steven E. Brady

  

 3

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