Document:

Ceryanec Employment Agreement

Exhibit 10.2

EMPLOYMENT AGREEMENT
AGREEMENT entered into as of May 13, 2015, by and between MEREDITH CORPORATION, an Iowa corporation (the “Company” or “Meredith”), and Joseph H. Ceryanec (“Ceryanec”), to become effective June 1, 2015 (“Effective Date”). 

WITNESSETH: 
WHEREAS, Ceryanec has been employed by the Company as Chief Financial Officer of Meredith Corporation; and 
WHEREAS, the Company wishes to continue to employ Ceryanec pursuant to the terms and conditions hereof, and in order to induce Ceryanec to enter into this agreement (the “Agreement”) and to secure the benefits to accrue from his performance hereunder is willing to undertake the obligations assigned to it herein; and 
WHEREAS, Ceryanec is willing to continue his employment with the Company under the terms hereof and to enter into the Agreement; 
NOW THEREFORE, in consideration of the premises and mutual covenants contained herein and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto agree as follows: 
		
	1.
	Position. 

Meredith will continue to employ Ceryanec as Chief Financial Officer of Meredith Corporation. While employed hereunder, Ceryanec shall continue to have at least the same level of responsibility and authority associated with being Chief Financial Officer as he has on date this Agreement is executed. 
		
	2.
	Base Salary. 

Ceryanec’s minimum base salary under this Agreement will be Five Hundred Ninety Thousand Dollars ($590,000) (“Base Salary”). Ceryanec will be eligible to be considered for merit increase pursuant to company policy and as determined by the Compensation Committee of the Board of Directors ("Compensation Committee") at its regular August meeting. Base Salary shall include all such increased amounts, and if increased, Base Salary shall not thereafter be decreased. 
		
	3.
	Incentive Plans. 

3.1    While employed under this Agreement, Ceryanec will be eligible to participate in Meredith’s Annual Management Incentive Plan (or any successor or replacement annual incentive plan of Meredith) for such periods as it continues in effect, subject to the terms of the Plan and to the discretion vested in the Compensation Committee of the Board of Directors by the Plan, provided, however, that the percentage of Base Salary payable as a target bonus under the Plan shall not be less than seventy percent (70%) (actual Company financial results may eventuate in an actual bonus paid to Ceryanec equal to, less than, or more than seventy percent (70%) of Base Salary). 

3.2     Ceryanec will continue to participate in his existing Long-Term Incentive Programs for such periods as they continue to be in effect subject to the terms of the Programs and to the discretion vested in the Compensation Committee of the Board of the Directors by the Programs.
3.3    While employed under this Agreement, Ceryanec will be eligible to participate in Meredith’s non-qualified stock incentive plan in accordance with the terms of the plan and subject to the discretion and approval of the Compensation Committee of the Board of Directors. 
		
	4.
	Perquisites. 

During his employment under this Agreement, Ceryanec shall receive or be eligible to participate in, to the extent permitted by law, the various perquisites and plans generally available to officers of Meredith, in accordance with the provisions thereof as in effect from time to time, including, without limitation, professional fee reimbursement for tax preparation and financial planning, supplemental life insurance, executive long term disability insurance, Meredith Replacement Benefit Plan, Meredith Supplemental Benefit Plan, the Amended and Restated Severance Agreement Between Meredith Corporation and Executive Officers, and a minimum of four (4) weeks of vacation per year. Ceryanec will similarly be provided with an automobile allowance of $11,050/year under Meredith’s executive automobile allowance policy and reimbursement for the regular dues in a country club pursuant to Meredith’s policy, subject to applicable withholding and deductions. Furthermore, Ceryanec will be entitled to reimbursement, in accordance with Meredith Policy, for reasonable expenses incurred in connection with the performance of his duties with Meredith. In addition, the terms and conditions of the Amended and Restated Severance Agreement between Meredith Corporation and Executive Officers dated as of November 2, 2010, between Ceryanec and the Company (the Severance Agreement) are incorporated herein and will continue through the Term and extended terms of this Agreement. 
		
	5.
	Termination of Employment. 

5.1    Termination for Cause.        This Agreement and Ceryanec’s employment hereunder may be terminated by Meredith at any time for “Cause”, in which case Ceryanec will receive only his Base Salary through the date of such termination. Upon such termination, Ceryanec shall be entitled to no further benefits under this Agreement, except that any rights and benefits Ceryanec have under the employee benefit plans and programs of the Company, in which Ceryanec is a participant, shall be determined in accordance with the terms and provisions of such plans and programs. Ceryanec understands and agrees that in the event of the termination of employment and termination of this Agreement pursuant to this Section 5.1, all awards of restricted stock, restricted stock units, stock options and any other benefits under the Incentive Plans shall be handled in accordance with the terms of the relevant plan and agreements entered into between Ceryanec and the Company with respect to such awards. “Cause” is defined as (i) continued failure of Ceryanec to perform substantially his duties with the Company (other than any such failure resulting from Disability), after a demand for substantial performance is delivered to Ceryanec, which specifically identifies the manner in which Ceryanec has not attempted to substantially perform his duties and for those matters which are subject to cure, a ten (10) day notice to cure is provided or (ii) the engaging by Ceryanec in willful misconduct which is materially injurious to the Company, monetarily or otherwise. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or based upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by Ceryanec in good faith and in the best interests of the Company. Under no circumstances will Ceryanec be entitled to more than three (3) ten (10) day notice to cure periods during Ceryanec’s employment with Meredith. 
5.2    Termination Without Cause.    This Agreement and Ceryanec’s employment hereunder may be terminated by Meredith at any time without Cause. In the event Ceryanec’s employment is terminated without Cause by Meredith, then in return for a signed full release of all employment-related claims, Ceryanec will receive his base salary through the date on which notice is 

given and Ceryanec will then receive separation payments equivalent to his regular biweekly Base Salary, minus applicable withholding and deductions, for a period of eighteen (18) months following the date of notice to him and Ceryanec will receive a lump sum payment equal to his Annual Management Incentive Plan target bonus, minus applicable withholding and deductions, pro-rated for the year in which such termination occurs through the date on which notice of termination is given. If Ceryanec does not execute the above mentioned release, Ceryanec will receive only his Base Salary through the date on which notice of termination is given. It is understood that if as a result of Ceryanec’s termination without Cause hereunder Ceryanec could qualify for a severance payment (a Change in Control Severance Payment) and, or payment under the Meredith Corporation Severance Pay Plan, Ceryanec may elect to receive the consideration provided for under either this Agreement or one of the above referenced plans. Ceryanec is not entitled to receive the consideration provided for under this Agreement and either of the above referenced Plans under any circumstances. 
Upon such termination, Ceryanec shall be entitled to no further benefits under this Agreement, except that any rights and benefits Ceryanec may have under the employee benefit plans and programs of the Company, in which Ceryanec is a participant, shall be determined in accordance with the terms and provisions of such plans and programs, and except Ceryanec shall be presumed to have met eligibility requirements specified in Section 2.4 of the Meredith Replacement Benefit Plan and the Meredith Supplemental Benefit Plan or any successor thereto and he shall be entitled to the amounts that would have accrued under such plans through the date of his termination without Cause. All awards of restricted stock, restricted stock units, and stock options shall automatically vest, and stock options shall be exercisable for the full unexpired term of the option. 

The parties intend this Agreement to be in compliance with Section 409A of the Internal Revenue Code and its accompanying regulations and it should be interpreted accordingly. Therefore, if Ceryanec’s Base Salary at the time of termination without Cause exceeds the separation pay safe harbor rule under section 409A of the Internal Revenue Code, then the excess over the safe harbor will be paid within 60 days of the date of Ceryanec’s termination without Cause. 
5.3    Employee Voluntary.    In the event Ceryanec terminates his employment of his own volition,  such termination shall constitute a voluntary termination and in such event Meredith’s only obligation to Ceryanec shall be to make Base Salary payments provided for in this Agreement through the date of such voluntary termination. Any rights and benefits Ceryanec may have under the employee benefit plans and programs of the Company, in which he is a participant, shall be determined in accordance with the terms and provisions of such plans and programs. All awards of restricted stock, stock options and any other benefits under the Incentive Plans shall be handled in accordance with the terms of the relevant plan and agreements entered into between Ceryanec and the Company with respect to such awards. 
5.4    Employee Death or Disability.    In the event Ceryanec’s employment ends due to his death or disability, all awards of restricted stock, restricted stock units, stock options and any other benefits under the Incentive Plans shall be handled in accordance with terms of the relevant plan and agreements entered into between Ceryanec and the Company with respect such awards. 
5.5    Change in Title, Duties or Location.    If at any time prior to the end of the Term of this Agreement (a) a change is made to Ceryanec’s title as Chief Financial Officer of Meredith Corporation, (b) there is a material change in Ceryanec having at least the same level of responsibility and authority associated with being Chief Financial Officer as he has on date this Agreement is executed, (c) a change is made in Ceryanec’s reporting relationship such that he reports to any person with any title other than Chief Executive Officer of Meredith; or (d) an involuntary change is made to the location of Ceryanec’s principal office more than twenty-five (25) miles from its current location, Ceryanec shall have the right to terminate his employment with the Company by giving written notice 

within ninety (90) days after the date of Ceryanec receiving written notice of such action, and such termination shall be deemed to be Termination Without Cause by the Company and such termination shall be treated in accordance with the terms of Section 5.2 
5.6    Officers and Directors Insurance.    The Company agrees to maintain Ceryanec’s coverage under such directors’ and officers’ liability insurance policies as shall from time to time be in effect for active officers and employees for not less than six years following Ceryanec's termination of employment. 
		
	6.
	Covenants of Ceryanec. 

6.1    Ceryanec agrees that during his employment with Meredith and, provided applicable termination payments, if any, are being paid pursuant to Section 5, for a period of eighteen (18) months after his employment ends (whether his employment is ended voluntarily or involuntarily by Ceryanec or Meredith), Ceryanec will not, directly or indirectly, whether as a sole proprietor, partner, venture, stockholder, director, officer, employee, consultant, or in any other capacity as a principal or agent or through any person, subsidiary, affiliate, or employee acting as nominee or agent, engage in any of the following activities: 
		
	a)
	Render services to, conduct or engage in any activities for the benefit of, or be interested in or associated with, any person or other entity that is a competitor of Meredith (“Competitor”). 

		
	b)
	Take any action to finance or guarantee or knowingly to provide other material assistance to any Competitor. 

		
	c)
	Influence or attempt to influence any person or entity that is a contracting party with Meredith to terminate any written or oral agreement with Meredith; 

		
	d)
	Hire or attempt to hire any person who is employed by Meredith or attempt to influence any such person to terminate employment with Meredith. 

6.2    Ceryanec will not use, divulge, sell or deliver to or for himself or any other person, firm or corporation other than Meredith any confidential information of Meredith in any form or memoranda, reports, computer software and data banks, customer lists, employee lists, contracts, strategic plans and any and all other documents containing trade secrets concerning Meredith and its business operations (“Confidential Information”). Confidential Information does not include information available from or which can be ascertained through public means (e.g., phone books, published materials or industry publications). Ceryanec will destroy or surrender to Meredith all Confidential Information and all other property belonging to Meredith at the conclusion of his employment. 
6.3    Ceryanec agrees to cooperate with Meredith in the truthful and honest prosecution and/or defense of any claim in which Meredith may have an interest (with the right of reimbursement for reasonable expenses actually incurred) which may include, without limitation, being available to participate in any proceeding involving Meredith, permitting interviews with representatives of Meredith, appearing for depositions and trial testimony, and producing and/or providing any documents or names of other persons with relevant information in Ceryanec’s possession or control arising out of his employment in a reasonable time, place and manner. 
		
	7.
	Arbitration.

7.1    The parties shall use their best efforts and good will to settle all disputes by amicable negotiations. The Company and Ceryanec agree that, with the express exception of any dispute or controversy arising under Section 3(g) of the Severance Agreement, any controversy or claim arising out of or in any way relating to Ceryanec’s employment with the Company, including, without limitation, any and all disputes concerning this Agreement and the termination of this Agreement that are not amicably resolved by negotiation, shall be settled by arbitration in Des Moines, Iowa, or such other place agreed to by the parties, as follows: 
		
	a)
	An arbitration may be commenced by any party to this Agreement by the service of a written Request for Arbitration upon the other affected party. Such Request for Arbitration shall summarize the controversy or claim to be arbitrated. No Request for Arbitration shall be valid if it relates to a claim, dispute, disagreement or controversy that would have been time barred under the applicable statute of limitations had such claim, dispute, disagreement or controversy been submitted to the courts of Iowa. 

		
	b)
	The arbitration will be conducted before an impartial arbitrator appointed as follows. Within sixty (60) days of the Request for Arbitration the parties shall mutually agree to an arbitrator. If the parties fail to mutually agree to an arbitrator within sixty (60) days, then within seventy-five (75) days following Request for Arbitration, each party shall produce to the other a list of three (3) potential arbitrators. Within ninety (90) days of the Request for Arbitration the parties will meet in person or by conference call to select an arbitrator from the combined list. Each party will first strike two (2) names from the other party's list. The arbitrator will then be selected by lot from the two potential arbitrators whose names have not been stricken. The parties will evenly split the costs of the arbitrator. Legal fees and costs may be awarded by the arbitrator in accordance with applicable law. 

		
	c)
	Judgment on the award rendered by the arbitrators may be entered in any court having jurisdiction thereof. 

		
	d)
	It is intended that controversies or claims submitted to arbitration under this Section 7 shall remain confidential, and to that end it is agreed by the parties that neither the facts disclosed in the arbitration, the issues arbitrated, nor the views or opinions of any persons concerning them, shall be disclosed by third persons at any time, except to the extent necessary to enforce an award or judgment or as required by law or in response to legal process or in connection with such arbitration. In addition, Ceryanec and the Company shall be entitled to disclose the facts disclosed in arbitration, the issues arbitrated, and the views or opinions of any persons concerning them to legal and tax advisors so long as such advisors agree to be bound by the terms of this Agreement. 

		
	8.
	Governing Law. 

This Agreement shall be deemed a contract made under, and for all purposes shall be construed in accordance with, the laws of the State of Iowa without reference to the principles of conflict of laws. 

		
	9.
	Benefit and Assignment.

Ceryanec’s obligations and rights under this Agreement shall insure to the benefit of and shall be binding upon his heirs and legal representatives.  This Agreement may not be assigned by either party except that if Meredith is sold or otherwise transferred, this Agreement may be assigned by Meredith to the transferee, provided that the transferee expressly assumes the obligations of Meredith under this Agreement.

		
	10.
	Notices.

Any notices required or permitted to be given under the provisions of this Agreement shall be in writing and delivered personally or by certified or registered mail, return receipt requested, postage prepaid, to the following persons at the following addresses:

To Ceryanec:

Mr. Joseph Ceryanec
5670 Glen Oaks Pointe
West Des Moines, Iowa 50266-0000

To Meredith:

Meredith Corporation 
% Scott Rundall, Senior Vice President, Human Resources
1716 Locust Street
Des Moines, Iowa 50309-3023

Copy to:

Meredith Corporation
% Legal Department
1716 Locust Street
Des Moines, Iowa 50309-3023

		
	11.
	Entire Agreement. 

This Agreement, and those plans and agreements referenced herein contain all the understandings and representations between Ceryanec and Meredith pertaining to Ceryanec’s employment with Meredith and supersede all agreements the parties have previously entered into, including, but not limited to the employment letter Ceryanec dated September 30, 2008. This Agreement may be modified only in writing signed by Ceryanec and an authorized representative of Meredith. 
		
	12.
	Deferred Payments. 

If any provision in this Agreement is deemed to potentially preclude a tax deduction for compensation in a taxable year because it does not meet the definition of performance-based compensation pursuant to Section 162(m) of the Internal Revenue Code of 1986, as amended, then such compensation shall be reduced accordingly. The reduction shall be in sufficient amount to conform to the appropriate provisions of Internal Revenue Code and the Treasury regulations thereunder. It is Meredith’s intention to ensure that all of its incentive plans are performance-based in conformance with Section 162(m) of the Internal Revenue Code of 1986, as amended. To the extent that any amounts shall be withheld under this paragraph, such amounts shall be deposited in a deferral account for Ceryanec’s benefit and be paid as soon as practicable to Ceryanec in accordance with applicable tax regulations. 
		
	13.
	Headings. 

Headings of the sections of this Agreement are intended solely for convenience and no provision of this Agreement is to be construed by reference to the title of any section. 

		
	14.
	Knowledge and Representation. 

Ceryanec acknowledges that the terms of this Agreement have been fully explained to him, that Ceryanec understands the nature and extent of the rights and obligations provided under this Agreement, and that Ceryanec has been afforded an adequate opportunity to be represented by legal counsel in the negotiation and preparation of this Agreement. 
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first set forth above. 
MEREDITH CORPORATION                                                 

/s/ Scott Rundall                        /s/ Joseph Ceryanec                
By: Scott Rundall                         Joseph H. Ceryanec
Dated:     5/22/2015                        Dated:     6/2/2015EX-10.9

 Exhibit 10.9 

CHANGE IN CONTROL AGREEMENT 

THIS AGREEMENT is entered into as of April 1, 2014, by and between Clifton Savings Bank (the “Bank”) and Patricia Hrotko
( the “Executive”). 
 WHEREAS, the Bank will employ Executive in a position of importance to the Bank’s operations
and wishes to protect her position with the Bank in the event of a change in control (as defined in this Agreement); 
 NOW
THEREFORE, in consideration of these premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows. 

 

	1.	Term of Agreement. 

 (a) The term of this Agreement shall commence as of April 1,
2014 (the “Effective Date”) and expire on the first anniversary of such date, unless otherwise extended as noted under Section 1(b) of this Agreement. 

(b) On or before the first anniversary of the Effective Date, and each anniversary of such date thereafter, the Compensation Committee of the
Board of Directors of the Bank may extend the term of the Agreement for an additional year, so that the remaining term of the Agreement again becomes twelve (12) months from the applicable anniversary date, unless Executive elects not to extend
the term of this Agreement by giving written notice at least thirty (30) days prior to the applicable anniversary date. The Board of Directors will notify Executive at least thirty (30) days prior to the applicable anniversary date whether
it has determined to extend the Agreement. 
 (c) Notwithstanding anything in this Section 1 to the contrary, this Agreement shall
terminate immediately if Executive or the Bank terminates Executive’s employment prior to a Change in Control (as defined in this Agreement). 
  

	2.	Change in Control. 

 (a) Upon the occurrence of a Change in Control (as defined in this
Agreement) followed at any time during the term of this Agreement by the termination of Executive’s employment in accordance with the terms of this Agreement, other than for Just Cause, as defined in Section 2(c) of this Agreement, the
provisions of Section 3 of this Agreement shall apply. Upon the occurrence of a Change in Control, Executive shall have the right to elect to voluntarily terminate her employment at any time during the term of this Agreement following an event
constituting “Good Reason.” Good Reason” means, unless Executive has consented in writing thereto, the occurrence following a Change in Control, of any of the following: 

 

	 	(i)	 the assignment to Executive of any duties materially inconsistent with Executive’s position, including any material change in status, title,
authority, duties or responsibilities or any other action that results in a 

	 	
material diminution in such status, title, authority, duties or responsibilities, excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith and that is
remedied by the Bank or Executive’s employer reasonably promptly after receipt of notice thereof given by the Executive; 

  

	 	(ii)	a reduction by the Bank of the Executive’s base salary in effect immediately prior to the Change in Control; 

  

	 	(iii)	the relocation of the Executive’s office to a location more than thirty-five (35) miles from its location as of the date of this Agreement; 

 

	 	(iv)	the taking of any action by the Bank or successors that would materially adversely affect the Executive’s overall compensation and benefits package, unless such changes to the compensation and benefits package are
made on a non-discriminatory basis to all employees; or 

  

	 	(v)	the failure of the Bank to obtain the assumption in writing of the Bank’s obligation to perform this Agreement by any successor to all or substantially all of the assets of the Bank within thirty (30) days
after a reorganization, merger, consolidation, sale or other disposition of assets of the Bank. 

 (b) For purposes of this
Agreement, a “Change in Control” shall be deemed to occur on the earliest of any of the following events: 
  

	 	(i)	Merger: The Company or the Bank merges into or consolidates with another corporation, or merges another corporation into the Company or the Bank, and as a result less than a majority of the combined voting power
of the resulting corporation immediately after the merger or consolidation is held by persons who were stockholders of the Company or the Bank immediately before the merger or consolidation. 

 

	 	(ii)	Acquisition of Significant Share Ownership: There is filed or required to be filed a report on Schedule 13D or another form or schedule (other than Schedule 13G) required under Sections 13(d) or 14(d) of the
Securities Exchange Act of 1934, if the schedule discloses that the filing person or persons acting in concert has or have become the beneficial owner of 25% or more of a class of the Company’s voting securities, but this clause (b) shall
not apply to beneficial ownership of Company voting shares held in a fiduciary capacity by an entity of which the Company directly or indirectly beneficially owns 50% or more of its outstanding voting securities. 

  
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	 	(iii)	Change in Board Composition: During any period of two consecutive years, individuals who constitute the Company’s or the Bank’s Board of Directors at the beginning of the two-year period cease for any
reason to constitute at least a majority of the Company’s or the Bank’s Board of Directors; provided, however, that for purposes of this clause (iii), each director who is first elected by the board (or first nominated by the board for
election by the stockholders) by a vote of at least two-thirds (2/3) of the directors who were directors at the beginning of the two-year period shall be deemed to have also been a director at the beginning of such period; or 

 

	 	(iv)	Sale of Assets: The Company sells to a third party all or substantially all of its assets. 

Notwithstanding anything in this Agreement to the contrary, a “Change in Control” shall not result from the consummation of any
transaction or series of transactions constituting a “second step conversion” of the Company and Bank resulting in the ownership of the Bank by an entity wholly controlled by public shareholders. 

(c) Executive shall not have the right to receive termination benefits pursuant to Section 3 hereof upon termination for Just Cause. The
term “Just Cause” shall mean termination because of Executive’s personal dishonesty, incompetence, willful misconduct, any breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, willful
violation of any law, rule, regulation (other than traffic violations or similar offenses), final cease and desist order, or any material breach of any provision of this Agreement. Notwithstanding the foregoing, Executive shall not be deemed to have
been terminated for Just Cause unless and until there shall have been delivered to her a copy of a resolution duly adopted by the affirmative vote of a majority of the entire membership of the Board of Directors at a meeting of the Board of
Directors called and held for that purpose (after reasonable notice to Executive and an opportunity for him, together with counsel, to be heard before the Board of Directors), finding that in the good faith opinion of the Board of Directors,
Executive was guilty of conduct justifying termination for Just Cause and specifying the particulars thereof in detail. Executive shall not have the right to receive compensation or other benefits for any period after termination for Just Cause.

  

	3.	Termination Benefits. 

 (a) If Executive’s employment is voluntarily (in accordance
with Section 2(a) of this Agreement) or involuntarily terminated within one (1) year of a Change in Control, Executive shall receive: 
  

	 	(i)	a lump sum cash payment equal to one (1) times her annual base salary as of his termination date. Such payment shall be made not later than five (5) days following Executive’s termination of employment
under this Section 3. 

  
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	 	(ii)	Continued benefit coverage under all Bank health and welfare plans which Executive participated in as of the date of the Change in Control (collectively, the “Employee Benefit Plans”) for a period of twelve
(12) months following Executive’s termination of employment. Said coverage shall be provided under the same terms and conditions in effect on the date of Executive’s termination of employment. Solely for purposes of benefits
continuation under the Employee Benefit Plans, Executive shall be deemed to be an active employee. To the extent that benefits required under this Section 3(a) cannot be provided under the terms of any Employee Benefit Plan, the Bank shall
enter into alternative arrangements that will provide Executive with comparable benefits. 

 (b) Notwithstanding the preceding
provisions of this Section 3, in no event shall the aggregate payments or benefits to be made or afforded to Executive under said paragraphs (the “Termination Benefits”) or otherwise by the Company or the Bank constitute an
“excess parachute payment” under Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), or any successor thereto, and to avoid such a result, Termination Benefits will be reduced, if necessary, to an
amount (the “Non-Triggering 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 required hereby among the Termination Benefits provided by this Section 3 shall be made to the payments and benefits provided under this Agreement. 
  

	4.	Notice of Termination. 

 (a) Any purported termination by the Bank or by Executive shall
be communicated by Notice of Termination to the other party hereto. For purposes of this Agreement, a “Notice of Termination” shall mean a written notice which shall indicate the specific termination provision in this Agreement relied upon
and shall set forth in detail the facts and circumstances claimed to provide a basis for termination of Executive’s employment under the provision so indicated. 

(b) “Date of Termination” shall mean the date specified in the Notice of Termination (which, in the case of a termination for Just
Cause, shall not be less than thirty (30) days from the date such Notice of Termination is given). 
  

	5.	Source of Payments. 

 All payments provided in this Agreement shall be timely paid in
cash or check from the general funds of the Bank. 
 6. Effect on Prior Agreements and Existing Benefit Plans. This Agreement contains the entire
understanding between the parties hereto and supersedes any prior agreement or understanding between the Bank and Executive, except that this Agreement shall not affect or operate to reduce any benefit or compensation inuring to Executive of a kind
elsewhere provided. No provision of this Agreement shall be interpreted to mean that Executive is subject to receiving fewer benefits than those available to her without reference to this Agreement. 

  
 4 

 
Nothing in this Agreement shall confer upon Executive the right to continue in the employ of the Bank or shall impose on the Bank any obligation to employ or retain Executive in its employ for
any period. 
  

	7.	No Attachment; Binding Effect. 

 (a) Except as required by law, no right to receive
payments under this Agreement shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge, or hypothecation or to execution, attachment, levy or similar process or assignment by operation of law, and any
attempt, voluntary or involuntary, to affect any such action shall be null, void and of no effect. 
 (b) This Agreement shall be binding
upon, and inure to the benefit of, Executive, the Bank and their respective successors and assigns. 
  

	8.	Modification and Waiver. 

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

 

	9.	Severability. 

 If, for any reason, any provision of this Agreement, or any part
of any provision, is held invalid, such invalidity shall not affect any other provision of this Agreement or any part of such provision not held so invalid, and each such other provision and part thereof shall to the full extent consistent with law
continue in full force and effect. 
  

	10.	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. In addition, references herein to the masculine shall apply to both the masculine and the feminine. 

  
 5 

	11.	Governing Law. 

 Except to the extent preempted by federal law, the validity,
interpretation, performance, and enforcement of this Agreement shall be governed by the laws of the State of New Jersey, without regard to principles of conflicts of law of that State. 

 

	12.	Arbitration. 

 Any dispute or controversy arising under or in connection with this
Agreement shall be settled exclusively by arbitration, conducted before a panel of three arbitrators sitting in a location selected by Executive within fifty (50) miles from the location of the Bank, in accordance with the rules of the American
Arbitration Association then in effect. Judgment may be entered on the arbitrator’s award in any court having jurisdiction; provided, however, that Executive shall be entitled to seek specific performance of her right to be paid until the Date
of Termination during the pendency of any dispute or controversy arising under or in connection with this Agreement. 
  

	13.	Payment of Legal Fees. 

 All reasonable legal fees paid or incurred by Executive pursuant
to any dispute or question of interpretation relating to this Agreement shall be paid or reimbursed by the Bank, only if Executive is successful pursuant to a legal judgment, arbitration or settlement. 

 

	14.	Indemnification. 

 The Bank shall provide Executive (including her heirs, executors and
administrators) with coverage under a standard directors’ and officers’ liability insurance policy at its expense and shall indemnify Executive (and her heirs, executors and administrators) to the fullest extent permitted under applicable
law against all expenses and liabilities reasonably incurred by her in connection with or arising out of any action, suit or proceeding in which she may be involved by reason of her having been a director or officer of the Company or the Bank
(whether or not she continues to be a director or officer at the time of incurring such expenses or liabilities), such expenses and liabilities to include, but not be limited to, judgments, court costs, attorneys’ fees and the cost of
reasonable settlements. 
  

	15.	Successors to the Bank and the Company. 

 The Bank and the Company shall require any
successor or assignee, whether direct or indirect, by purchase, merger, consolidation or otherwise, to all or substantially all of the business or assets of the Bank or the Company, 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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	16.	Required Provisions. 

 In the event any of the provisions of this Section 16 are in
conflict with the terms of this Agreement, this Section 16 shall prevail. 
 (a) The Board of Directors may terminate Executive’s
employment at any time, but any termination by the Bank, other than termination for Just Cause, shall not prejudice Executive’s right to compensation or other benefits under this Agreement. Executive shall not have the right to receive
compensation or other benefits for any period after termination for Cause. 
 (b) If Executive is suspended from office and/or temporarily
prohibited from participating in the conduct of the Bank’s affairs by a notice served under Section 8(e)(3) or 8(g)(1) of the Federal Deposit Insurance Act, 12 U.S.C. §1818(e)(3) or (g)(1); the Bank’s obligations under this
contract shall be suspended as of the date of service, unless stayed by appropriate proceedings. If the charges in the notice are dismissed, the Bank may in its discretion: (i) pay Executive all or part of the compensation withheld while its
contract obligations were suspended; and (ii) reinstate (in whole or in part) any of the obligations which were suspended. 
 (c) If
Executive is removed and/or permanently prohibited from participating in the conduct of the Bank’s affairs by an order issued under Section 8(e)(4) or 8(g)(1) of the Federal Deposit Insurance Act, 12 U.S.C. §1818(e)(4) or (g)(1), all
obligations of the Bank under this contract shall terminate as of the effective date of the order, but vested rights of the contracting parties shall not be affected. 

(d) If the Bank is in default as defined in Section 3(x)(1) of the Federal Deposit Insurance Act, 12 U.S.C. §1813(x)(1) all
obligations of the Bank under this contract shall terminate as of the date of default, but this paragraph shall not affect any vested rights of the contracting parties. 

(e) All obligations under this Agreement shall be terminated, except to the extent a determination is made that continuation of the contract
is necessary for the continued operation of the Bank (i) by the director of the Office of the Comptroller of the Currency (the “OCC”) or her or her designee (the “Director”), at the time the OCC 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; or (ii) by the Director, at the time the Director 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 Executive that have already vested, however, shall not be affected by such action. 

(f) Any payments made to employees pursuant to this Agreement, or otherwise, are subject to and conditioned upon their compliance with 12
U.S.C. §1828(k) and FDIC regulation 12 C.F.R. Part 359, Golden Parachute and Indemnification Payments. 

  
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	17.	Section 409A of the Code. 

 (a) This Agreement is intended to comply with the
requirements of Section 409A of the Code, and specifically, with the “short-term deferral exception” under Treasury Regulation Section 1.409A-1(b)(4) and the “separation pay exception” under Treasury Regulation
Section 1.409A-1(b)(9)(iii), and shall in all respects be administered in accordance with Section 409A of the Code. If any payment or benefit hereunder cannot be provided or made at the time specified herein without incurring sanctions on
Executive under Section 409A of the Code, then such payment or benefit shall be provided in full at the earliest time thereafter when such sanctions will not be imposed. For purposes of Section 409A of the Code, all payments to be made
upon a termination of employment under this Agreement may only be made upon a “separation from service” (within the meaning of such term under Section 409A of the Code), each payment made under this Agreement shall be treated as a
separate payment, the right to a series of installment payments under this Agreement (if any) is to be treated as a right to a series of separate payments, and if a payment is not made by the designated payment date under this Agreement, the payment
shall be made by December 31 of the calendar year in which the designated date occurs. To the extent that any payment provided for hereunder would be subject to additional tax under Section 409A of the Code, or would cause the
administration of this Agreement to fail to satisfy the requirements of Section 409A of the Code, such provision shall be deemed null and void to the extent permitted by applicable law, and any such amount shall be payable in accordance with
subparagraph (b) of this Agreement below. In no event shall Executive, directly or indirectly, designate the calendar year of payment. 

(b) If, when separation from service occurs, Executive is a “specified employee” within the meaning of Section 409A of the
Code, and if the cash severance payment under Section 3(a)(i) of this Agreement would be considered deferred compensation under Section 409A of the Code, and, finally, if an exemption from the six-month delay requirement of
Section 409A(a)(2)(B)(i) of the Code is not available (i.e., the “short-term deferral exception” under Treasury Regulations Section 1.409A-1(b)(4) or the “separation pay exception” under Treasury
Section 1.409A-1(b)(9)(iii)), the Bank or the Company will make the maximum severance payment possible in order to comply with an exception from the six month requirement and make any remaining severance payment under Section 3(a)(i) of
this Agreement to Executive in a single lump sum without interest on the first payroll date that occurs after the date that is six (6) months after the date on which Executive separates from service. 

(c) If (x) under the terms of the applicable policy or policies for the insurance or other benefits specified in Section 3(a)(ii) of
this Agreement it is not possible to continue coverage for Executive and her dependents, or (y) when a separation from service occurs Executive is a “specified employee” within the meaning of Section 409A of the Code, and if any
of the continued insurance coverage or other benefits specified in Section 3(a)(ii) of this Agreement would be considered deferred compensation under Section 409A of the Code, and, finally, if an exemption from the six-month delay
requirement of Section 409A(a)(2)(B)(i) of the Code is not available for that particular insurance or other benefit, the Bank or the Company shall pay to Executive in a single lump sum an amount in cash equal to the present value of the
Bank’s projected cost to maintain that particular insurance benefit had Executive’s employment not terminated. The lump-sum payment shall be made thirty (30) days after employment termination or, if Section 17(b) of this
Agreement applies, on the first payroll date that occurs after the date that is six (6) months after the date on which Executive separates from service. 

  
 8 

 (d) References in this Agreement to Section 409A of the Code include rules, regulations, and
guidance of general application issued by the Department of the Treasury under Section 409A of the Code. 
 [Signature Page
Follows] 

  
 9 

 SIGNATURES 

IN WITNESS WHEREOF, Clifton Savings Bank has caused this Agreement to be executed and its seal to be affixed hereunto by a duly authorized
officer, and Executive has signed this Agreement on the date first written above. 
  

							
	ATTEST:				CLIFTON SAVINGS BANK
				
	 /s/ Bart D’Ambra
				By:		 /s/ Paul M. Aguggia

	Corporate Secretary						For the Entire Board of Directors
			
	WITNESS:				EXECUTIVE
			
	 /s/ Janemarie Kovarcik
				 /s/ Patricia Hrotko

					Patricia Hrotko

  
 10

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