Document:

Exhibit 10.9

 

WAYNE FARMS, INC. 

MANAGEMENT INCENTIVE PLAN  

EMPLOYEE NONQUALIFIED

OPTION AWARD AGREEMENT

 

THIS NONQUALIFIED OPTION AWARD AGREEMENT
(the “Agreement”), is entered into as of [   ], 2015 (the “Date of Grant”), by
and between Wayne Farms, Inc., a Delaware corporation (the “Company”), and [Insert Name] (the
“Participant”).

 

WHEREAS, the Company has adopted the Wayne
Farms, Inc. Management Incentive Plan (the “Plan”), pursuant to which Options may be granted; and

 

WHEREAS, the Compensation Committee of the
Board of Directors of the Company (the “Committee”) has determined that it is in the best interests of the Company
and its stockholders to grant the Option provided for herein to the Participant subject to the terms set forth herein.

 

NOW, THEREFORE, for and in consideration
of the premises and the covenants of the parties contained in this Agreement, and for other good and valuable consideration, the
receipt of which is hereby acknowledged, the parties hereto, for themselves, their successors and assigns, hereby agree as follows:

 

 1.            Grant of Option.

 

(a)               
Grant. The Company hereby grants to the Participant an Option (the “Option”) to purchase [Insert
Number] shares of Class A Common Stock (such shares, the “Option Shares”), on the terms and conditions
set forth in this Agreement and as otherwise provided in the Plan. The Option is not intended to qualify as an Incentive Stock
Option. The Options shall vest in accordance with Section 2. The Exercise Price shall be $[____] per Option Share.

 

(b)              
Incorporation by Reference. The provisions of the Plan are incorporated herein by reference. Except as otherwise
expressly set forth herein, this Agreement shall be construed in accordance with the provisions of the Plan and any interpretations,
amendments, rules and regulations promulgated by the Committee from time to time pursuant to the Plan. Any capitalized terms not
otherwise defined in this Agreement shall have the definitions set forth in the Plan. The Committee shall have final authority
to interpret and construe the Plan and this Agreement and to make any and all determinations under them, and its decision shall
be binding and conclusive upon the Participant and his legal representative in respect of any questions arising under the Plan
or this Agreement. The Participant acknowledges that he has received a copy of the Plan and has had an opportunity to review the
Plan and agrees to be bound by all the terms and provisions of the Plan.

 

2.           Vesting. Except as may otherwise be provided herein, subject to the Participant’s continued employment with the
Company or an Affiliate, the Options shall become vested and exercisable in equal installments on each of the first [ ] anniversaries
of the Date of Grant (each such date, a “Vesting Date”). Any fractional Option Shares resulting from the application
of the vesting schedule shall be aggregated and the Option Shares resulting from such aggregation shall vest on the final Vesting
Date.

 

3.           Termination of Employment.

 

If the Participant’s employment with
the Company and its Affiliates terminates for any reason, the unvested portion of the Option shall be cancelled immediately and
the Participant shall immediately forfeit any rights to the Option Shares subject to such unvested portion.

 

    	 

    	 

    

 4.            Expiration. 

 

(a)               
In no event shall all or any portion of the Option be exercisable after the tenth annual anniversary of the Date of Grant
(such ten-year period, the “Option Period”); provided, that if the Option Period would expire at a time
when trading in the shares of Class A Common Stock is prohibited by the Company’s securities trading policy (or Company-imposed
“blackout period”), the Option Period shall be automatically extended until the 30th day following the expiration
of such prohibition (but not to the extent any such extension would otherwise violate Section 409A of the Code).

 

(b)              
If, prior to the end of the Option Period, the Participant’s employment with the Company and all Affiliates is terminated
without Cause or by the Participant for any reason, the Option shall expire on the earlier of the last day of the Option Period
or the date that is 90 days after the date of such termination; provided, however, that if the Participant’s
employment with the Company and its Affiliates is terminated and the Participant is subsequently rehired or reengaged by the Company
or any Affiliate within 90 days following such termination and prior to the expiration of the Option, the Participant shall not
be considered to have undergone a termination of employment. In the event of a termination described in this subsection (b), the
Option shall remain exercisable by the Participant until its expiration only to the extent the Option was exercisable at the time
of such termination.

 

(c)               
If (x) the Participant’s employment is terminated prior to the end of the Option Period on account of his Disability,
(y) the Participant dies while still in the employ of the Company or an Affiliate or (z) the Participant dies following a termination
described in subsection (b) above but prior to the expiration of an Option, the Option shall expire on the earlier of the last
day of the Option Period or the date that is one year after the date of death or termination on account of Disability of
the Participant, as applicable. In such event, the Option shall remain exercisable by the Participant or his beneficiary, as applicable,
until its expiration only to the extent the Option was exercisable by the Participant at the time of such event.

 

(d)              
If the Participant ceases employment with the Company or any Affiliates due to a termination for Cause, the Option shall
expire immediately upon such termination.

 

5.           Method of Exercise and Form of Payment. No Option Shares shall be delivered pursuant to any exercise of the Option until
payment in full to the Company of the Exercise Price and an amount equal to any U.S. federal, state, local and non-U.S. income
and employment taxes required to be withheld. The Option may be exercised by delivery of written or electronic notice of exercise
to the Company or its designee (including a third party administrator) in accordance with the terms hereof. The Exercise Price
and all applicable required withholding taxes shall be payable (i) in cash, check, cash equivalent and/or in shares of Class A
Common Stock valued at the Fair Market Value at the time the Option is exercised (including, pursuant to procedures approved by
the Committee, by means of attestation of ownership of a sufficient number of shares of Class A Common Stock in lieu of actual
delivery of such shares to the Company); provided that such shares of Class A Common Stock are not subject to any pledge
or other security interest; or (ii) by such other method as the Committee may permit, including without limitation: (A) in other
property having a fair market value equal to the Exercise Price and all applicable required withholding taxes or (B) if there is
a public market for the shares of Class A Common Stock at such time, by means of a broker-assisted “cashless exercise”
pursuant to which the Company is delivered a copy of irrevocable instructions to a stockbroker to sell the shares of Class A Common
Stock otherwise deliverable upon the exercise of the Option and to deliver promptly to the Company an amount equal to the Exercise
Price and all applicable required withholding taxes; or (C) by means of a “net exercise” procedure effected by withholding
the minimum number of shares of Class A Common Stock otherwise deliverable in respect of an Option that are needed to pay for the
Exercise Price and all applicable required withholding taxes. Any fractional shares of Class A Common Stock shall be settled in
cash.

 

6.           Rights as a Stockholder. The Participant shall not be deemed for any purpose to be the owner of any shares of Class
A Common Stock subject to this Option unless, until and to the extent that (i) this Option shall have been exercised pursuant
to its terms, (ii) the Company shall have issued and delivered to the Participant the Option Shares and (iii) the Participant’s
name shall have been entered as a stockholder of record with respect to such Option Shares on the books of the Company. The Company
shall cause the actions described in clauses (ii) and (iii) of the preceding sentence to occur promptly following settlement as
contemplated by this Agreement, subject to compliance with applicable laws.

 

    	2

    	 

    

7.           Compliance with Legal Requirements.

 

(a)               
Generally. The granting and exercising of the Option, and any other obligations of the Company under this Agreement,
shall be subject to all applicable U.S. federal, state and local laws, rules and regulations, all applicable non-U.S. laws, rules
and regulations and to such approvals by any regulatory or governmental agency as may be required. The Participant agrees to take
all steps the Committee or the Company determines are reasonably necessary to comply with all applicable provisions of U.S. federal
and state securities law and non-U.S. securities law in exercising his rights under this Agreement.

 

(b)              
Tax Withholding. Any exercise of the Option shall be subject to the Participant satisfying any applicable U.S. federal,
state and local tax withholding obligations and non-U.S. tax withholding obligations. The Company shall have the right and is hereby
authorized to withhold from any amounts payable to the Participant in connection with the Option or otherwise the amount of any
required withholding taxes in respect of the Option, its exercise or any payment or transfer of the Option or under the Plan and
to take any such other action as the Committee or the Company deem necessary to satisfy all obligations for the payment of such
withholding taxes. The Participant may elect to satisfy, and the Company may require the Participant to satisfy, in whole or in
part, the tax obligations by withholding shares of Class A Common Stock that would otherwise be received upon exercise of the Option
with a Fair Market Value equal to such withholding liability. For exercises of the Option occurring during a blackout period under
the Company’s insider trading policy, the Company shall arrange for the sale of a number of shares of Class A Common
Stock to be delivered to the Participant to satisfy the applicable withholding obligations. Such shares of Class A Common
Stock shall be sold on behalf of the Participant through the Company’s transfer agent on the facilities of NASDAQ or through
the facilities of any other exchange on which the Class A Common Stock is listed at the time of such sale.

 

8.           Clawback. Notwithstanding anything to the contrary contained herein, the Committee may cancel the Option award if the
Participant, without the consent of the Company, has engaged in or engages in activity that is in conflict with or adverse to the
interest of the Company or any Affiliate while employed by or providing services to the Company or any Affiliate, including fraud
or conduct contributing to any financial restatements or irregularities, or violates a non-competition, non-solicitation, non-disparagement
or non-disclosure covenant or agreement with the Company or any Affiliate, as determined by the Committee. In such event, the Participant
will forfeit any compensation, gain or other value realized thereafter on the vesting or exercise of the Option, the sale or other
transfer of the Option, or the sale of shares of Class A Common Stock acquired in respect of the Option, and must promptly repay
such amounts to the Company. If the Participant receives any amount in excess of what the Participant should have received under
the terms of the Option for any reason (including without limitation by reason of a financial restatement, mistake in calculations
or other administrative error), all as determined by the Committee, then the Participant shall be required to promptly repay any
such excess amount to the Company. To the extent required by applicable law and/or the rules and regulations of NASDAQ or any other
securities exchange or inter-dealer quotation system on which the Class A Common Stock is listed or quoted, or if so required pursuant
to a written policy adopted by the Company, the Option shall be subject (including on a retroactive basis) to clawback, forfeiture
or similar requirements (and such requirements shall be deemed incorporated by reference into this Agreement).

 

9.           Restrictive Covenants. In the event that the Participant violates any restrictive covenants applicable to the Participant,
in addition to any other remedy which may be available at law or in equity, the Option shall be automatically forfeited effective
as of the date on which such violation first occurs. The foregoing rights and remedies are in addition to any other rights and
remedies that may be available to the Company and shall not prevent (and the Participant shall not assert that they shall prevent)
the Company from bringing one or more actions in any applicable jurisdiction to recover damages as a result of the Participant’s
breach of such restrictive covenants.

 

    	3

    	 

    

 10.         Miscellaneous.

 

(a)               
Transferability. The Option may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered
(a “Transfer”) by the Participant other than by will or by the laws of descent and distribution, pursuant to
a qualified domestic relations order or as otherwise permitted under Section 15(b) of the Plan. Any attempted Transfer of the Option
contrary to the provisions hereof, and the levy of any execution, attachment or similar process upon the Option, shall be null
and void and without effect.

 

(b)              
Waiver. Any right of the Company contained in this Agreement may be waived in writing by the Committee. No waiver
of any right hereunder by any party shall operate as a waiver of any other right, or as a waiver of the same right with respect
to any subsequent occasion for its exercise, or as a waiver of any right to damages. No waiver by any party of any breach of this
Agreement shall be held to constitute a waiver of any other breach or a waiver of the continuation of the same breach.

 

(c)               
Section 409A. The Option is not intended to be subject to Section 409A of the Code. Notwithstanding the foregoing
or any provision of the Plan or this Agreement, if any provision of the Plan or this Agreement contravenes Section 409A of the
Code or could cause the Participant to incur any tax, interest or penalties under Section 409A of the Code, the Committee may,
in its sole discretion and without the Participant’s consent, modify such provision to (i) comply with, or avoid being subject
to, Section 409A of the Code, or to avoid the incurrence of taxes, interest and penalties under Section 409A of the Code, and/or
(ii) maintain, to the maximum extent practicable, the original intent and economic benefit to the Participant of the applicable
provision without materially increasing the cost to the Company or contravening the provisions of Section 409A of the Code. This
Section 10(c) does not create an obligation on the part of the Company to modify the Plan or this Agreement and does not guarantee
that the Option or the Option Shares will not be subject to interest and penalties under Section 409A.

 

(d)              
Notices. Any notices provided for in this Agreement or the Plan shall be in writing and shall be deemed sufficiently
given if either hand delivered or if sent by fax, pdf/email or overnight courier, or by postage paid first class mail. Notices
sent by mail shall be deemed received three business days after mailing but in no event later than the date of actual receipt.
Notices shall be directed, if to the Participant, at the Participant’s address indicated by the Company’s records,
or if to the Company, to the attention of the General Counsel at the Company’s principal executive office.

 

(e)               
Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity
or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable
to the extent permitted by law.

 

(f)               
No Rights to Employment or Service. Nothing contained in this Agreement shall be construed as giving the Participant
any right to be retained, in any position, as an employee, consultant or director of the Company or its Affiliates or shall interfere
with or restrict in any way the rights of the Company or its Affiliates, which are hereby expressly reserved, to remove, terminate
or discharge the Participant at any time for any reason whatsoever.

 

(g)               
Fractional Shares. In lieu of issuing a fraction of a share of Class A Common Stock resulting from any exercise of
the Option or an adjustment of the Option pursuant to Section 12 of the Plan or otherwise, the Company shall be entitled to
pay to the Participant an amount in cash equal to the Fair Market Value of such fractional share.

 

(h)              
Beneficiary. The Participant may file with the Committee a written designation of a beneficiary on such form as may
be prescribed by the Committee and may, from time to time, amend or revoke such designation.

 

    	4

    	 

    

(i)                
Successors. The terms of this Agreement shall be binding upon and inure to the benefit of the Company and its successors
and assigns, and of the Participant and the beneficiaries, executors, administrators, heirs and successors of the Participant.

 

(j)                
Entire Agreement. This Agreement and the Plan contain the entire agreement and understanding of the parties hereto
with respect to the subject matter contained herein and supersede all prior communications, representations and negotiations in
respect thereto. No change, modification or waiver of any provision of this Agreement shall be valid unless the same be in writing
and signed by the parties hereto, except for any changes permitted without consent under Section 12 or 14 of the Plan.

 

(k)              
Governing Law and Venue. This Agreement shall be construed and interpreted in accordance with the laws of the State
of Delaware, without regard to principles of conflicts of laws thereof, or principles of conflicts of laws of any other jurisdiction
which could cause the application of the laws of any jurisdiction other than the State of Delaware.

 

   (i)                
Dispute Resolution; Consent to Jurisdiction. All disputes between or among any Persons arising out of or in any way
connected with the Plan, this Agreement or the Option shall be solely and finally settled by the Committee, acting in good faith,
the determination of which shall be final. Any matters not covered by the preceding sentence shall be solely and finally settled
in accordance with the Plan, and the Participant and the Company consent to the personal jurisdiction of the United States Federal
and state courts sitting in Wilmington, Delaware as the exclusive jurisdiction with respect to matters arising out of or related
to the enforcement of the Committee’s determinations and resolution of matters, if any, related to the Plan or this Agreement
not required to be resolved by the Committee. Each such Person hereby irrevocably consents to the service of process of any of
the aforementioned courts in any such suit, action or proceeding by the mailing of copies thereof by registered or certified mail,
postage prepaid, to the last known address of such Person, such service to become effective ten (10) days after such mailing.

 

   (ii)              
Waiver of Jury Trial. Each party hereto hereby waives, to the fullest extent permitted by applicable law, any right
it may have to a trial by jury in any legal proceeding directly or indirectly arising out of or relating to this Agreement or the
transactions contemplated (whether based on contract, tort or any other theory). Each party hereto (A) certifies that no representative,
agent or attorney of any other party has represented, expressly or otherwise, that such other party would not, in the event of
litigation, seek to enforce the foregoing waiver and (B) acknowledges that it and the other parties hereto have been induced to
enter into this Agreement by, among other things, the mutual waivers and certifications in this section.

 

(l)                
Headings; Gender. The headings of the Sections hereof are provided for convenience only and are not to serve as a
basis for interpretation or construction, and shall not constitute a part, of this Agreement. Masculine pronouns and other words
of masculine gender shall refer to both men and women as appropriate.

 

(m)            
Counterparts. This Agreement may be executed in one or more counterparts (including via facsimile and electronic
image scan (pdf)), each of which shall be deemed to be an original, but all of which together shall constitute one and the same
instrument and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the
other parties.

 

(n)              
Electronic Signature and Delivery. This Agreement may be accepted by return signature or by electronic confirmation.
By accepting this Agreement, the Participant consents to the electronic delivery of prospectuses, annual reports and other information
required to be delivered by U.S. Securities and Exchange Commission rules (which consent may be revoked in writing by the Participant
at any time upon three business days’ notice to the Company, in which case subsequent prospectuses, annual reports and other
information will be delivered in hard copy to the Participant).

 

(o)              
Electronic Participation in Plan. The Company may, in its sole discretion, decide to deliver any documents
related to current or future participation in the Plan by electronic means. The Participant hereby consents to receive such documents
by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained
by the Company or a third party designated by the Company.

 

[Remainder of page intentionally blank]

    	5

    	 

    

 

IN WITNESS WHEREOF, this Agreement has
been executed by the Company and the Participant as of the day first written above.

 

	 	WAYNE FARMS, INC.
	 	 	 
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	 	 
	 	 	 
	 	 
	 	[PARTICIPANT]

 

[signature page to [last name]
option agreement]

 

    	6Exhibit 10.1

 

 

JOSEPH T. SVETIK

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT is entered into on
the 19th day of May, 2015 (the “Agreement”), by and between POLONIA BANK, a federally chartered savings association
(“Bank”), and JOSEPH T. SVETIK (the “Executive”).

 

WHEREAS, the Bank wishes to employ
Executive’s services for the term of this Agreement; and

 

WHEREAS, Executive is willing to
serve in the employ of the Bank during the term of this Agreement.

 

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

 

1.             Employment. The Bank will employ Executive as President and Chief Executive Officer.  Executive
will perform all duties and shall have all powers commonly incident to the offices of President and Chief Executive Officer or
which, consistent with those offices, the Board of Directors of the Bank (the “Board”) delegates to Executive.  The
Bank shall appoint Executive as a director of the Bank. During the term of this Agreement, Executive also agrees to serve, if elected,
as an officer and/or director of any subsidiary or affiliate of the Bank and to carry out the duties and responsibilities reasonably
appropriate to those offices.

 

2.             Location and Facilities.  The Bank will furnish Executive with the working facilities and
staff customary for executive officers with the titles and duties set forth in Section 1 and as are necessary for him to perform
his duties.  The location of such facilities and staff shall be at the principal administrative offices of the Bank and
the Bank, or at such other site or sites customary for such offices.

 

3.             Term.

 

(a)    The term of this Agreement shall include: (i) the initial term, consisting of the period commencing on the date of
this Agreement (the “Effective Date”) and continuing for thirty-six (36) full months thereafter, plus (ii) any and
all extensions of the initial term made pursuant to Section 3(b) of this Agreement.

 

(b)    Commencing as of the first anniversary of the Effective Date and continuing as of each anniversary of the Effective
Date thereafter, the disinterested members of the board of directors of the Bank may extend the Agreement term for an additional
year (or such longer period of time as the parties may mutually agree), so that the remaining term of the Agreement again becomes
thirty-six (36) full months from the applicable anniversary of the Effective Date, unless the 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.

 

(c)   The disinterested members of the board
of directors of the Bank will review the Agreement and the Executive’s performance annually for purposes of determining whether
to extend the Agreement term and will include the rationale and results of its review in the minutes of the meetings. The board
of directors will notify the Executive no earlier than sixty (60) days and no later than thirty (30) days prior to the applicable
anniversary date whether it has determined to extend the Agreement.

 

    	 

    	 

    

 

(d)   Nothing in this Agreement shall mandate
or prohibit a continuation of the Executive’s employment following the expiration of the term of this Agreement, upon such
terms and conditions as the Bank and the Executive may mutually agree.

 

4.             Base Compensation.

 

(a)    The Bank agrees to pay Executive during the term of this Agreement a base salary at the rate of $300,000 per year,
payable in accordance with customary payroll practices.

 

(b)    Each year, the Board will review the level of Executive’s base salary, based upon factors they deem relevant,
in order to determine whether to maintain or increase his base salary.

 

5.             Bonuses.

 

(a)  As a signing bonus and an inducement
for Executive to become an employee of the Bank, the Bank will pay Executive $25,000 in a lump sum, minus deductions or withholdings
authorized or required by law or process, upon execution of this Agreement and $25,000 in a lump sum, minus deductions or withholdings,
on December 31, 2015, provided however Executive remains employed by the Bank on the payment dates. The signing bonus will
be paid on the Bank’s regular payroll date following the respective dates the bonuses are earned.

 

(b)  Executive will also have the opportunity
to receive a retention bonus on December 31, 2016, in the amount of $50,000, minus deductions or withholdings authorized or required
by law or process. Executive will only receive the retention bonus if he is employed by the Bank on the date of distribution of
the retention bonus. The retention bonus will be paid on the Bank’s regular payroll date following December 31, 2016.

 

6.             Benefit Plans.  Executive will be eligible to participate in life insurance, medical, dental,
pension, profit sharing, retirement and stock-based compensation plans and other programs and arrangements that the Bank may sponsor
or maintain.

 

7.             Vacations and Leave.

 

(a)    Executive may take vacations and other leave in accordance with policy for senior executives, or otherwise as approved
by the Board.

 

(b)    In addition to paid vacations and other leave, the Board may grant Executive a leave or leaves of absence, with or
without pay, at such time or times and upon such terms and conditions as the Board, in its discretion, may determine.

 

    	2

    	 

    

 

8.             Expense Payments and Reimbursements.  The Bank will reimburse Executive for all reasonable
out-of-pocket business expenses incurred in connection with his services under this Agreement upon substantiation of such expenses
in accordance with applicable policies of the Bank.

 

9.             Options. The Bank agrees to grant Executive an option to purchase 59,759 shares of common stock of
the Company in accordance with the Polonia Bancorp, Inc. 2013 Equity Incentive Plan.

 

10.           Loyalty and Confidentiality.

 

(a)    During the term of this Agreement, Executive will devote all his business time, attention, skill, and efforts to
the faithful performance of his duties under this Agreement; provided, however, that from time to time, Executive may serve on
the boards of directors of, and hold any other offices or positions in, companies or organizations that will not present any conflict
of interest with the Bank or any of its subsidiaries or affiliates, unfavorably affect the performance of Executive’s duties
pursuant to this Agreement, or violate any applicable statute or regulation.  Executive will not engage in any business
or activity contrary to the business affairs or interests of the Bank or any of its subsidiaries or affiliates. Notwithstanding,
the provisions of this Section 10(a), the Bank agrees that Executive may continue to serve as a director of Jim Thorpe Neighborhood
Bank.

 

(b)    Nothing contained in this Agreement will prevent or limit Executive’s right to invest in the capital stock
or other securities or interests of any business dissimilar from that of the Bank, or, solely as a passive, minority investor,
in any business.

 

(c)    Executive agrees to maintain the confidentiality of any and all information concerning the operation or financial
status of the Bank and its affiliates; the names or addresses of any borrowers, depositors and other customers; any information
concerning or obtained from such customers; and any other information concerning the Bank or its affiliates to which he may be
exposed during the course of his employment.  Executive further agrees that, unless required by law or specifically permitted
by the Board in writing, he will not disclose to any person or entity, either during or subsequent to his employment, any of the
above-mentioned information which is not generally known to the public, nor will he use the information in any way other than for
the benefit of the Bank.

 

11.           Termination and Termination Pay.  Subject to Section 12 of this Agreement, Executive’s
employment under this Agreement may be terminated in the following circumstances:

 

(a)    Death.  Executive’s employment under this Agreement will terminate upon his death during the
term of this Agreement, in which event Executive’s estate will receive the compensation due to Executive through the last
day of the calendar month in which his death occurred.

 

    	3

    	 

    

 

(b)    Retirement.  This Agreement will terminate upon Executive’s retirement under the retirement
benefit plan or plans in which he participates pursuant to Section 6 of this Agreement or otherwise.

 

(c)    Disability.

 

(i)       The Board or Executive may terminate Executive’s employment after having determined Executive has a Disability.
For purposes of this Agreement, “Disability” means a physical or mental infirmity that impairs Executive’s ability
to substantially perform his duties under this Agreement and results in Executive becoming eligible for long-term disability benefits
under any long-term disability plans of the Bank (or, if no such plans exists, that impairs Executive’s ability to substantially
perform his duties under this Agreement for a period of one hundred eighty (180) consecutive days). The Board will determine whether
or not Executive is and continues to be permanently disabled for purposes of this Agreement in good faith, based upon competent
medical advice and other factors that the Board reasonably believes to be relevant. As a condition to any benefits, the Board may
require Executive to submit to physical or mental evaluations and tests as the Board or its medical experts deem reasonably appropriate.

 

(ii)      In the event of his Disability, Executive will no longer be obligated to perform services under this Agreement. The
Bank will pay Executive, as Disability pay, an amount equal to seventy-five percent (75%) of Executive’s rate of base salary
in effect as of the date of his termination of employment due to Disability. The Bank will make Disability payments on a monthly
basis commencing on the first day of the month following the effective date of Executive’s termination of employment due
to Disability and ending on the earlier of: (A) the date he returns to full-time employment in the same capacity as he was employed
prior to his termination for Disability; (B) his death; (C) his attainment of age 70; or (D) the date this Agreement would have
expired had Executive’s employment not terminated by reason of Disability. The Bank will reduce Disability payments by the
amount of any short- or long-term disability benefits payable to Executive under any other disability programs sponsored by the
Bank. In addition, during any period of Executive’s Disability, the Bank will continue to provide Executive and his dependents,
to the greatest extent possible, with continued coverage under all benefit plans (including, without limitation, retirement plans
and medical, dental and life insurance plans) in which Executive and/or his dependents participated prior to Executive’s
Disability on the same terms as if he remained actively employed by the Bank.

 

(d)          Termination for Cause.

 

(i)      The Board may, by written notice to Executive in the form and manner specified in this paragraph, immediately terminate
his employment at any time for “Cause.”  Executive shall have no right to receive compensation or other benefits
for any period after termination for Cause.  Termination for Cause shall include termination because of Executive’s:

 

(A)      Personal dishonesty;

 

(B)       Incompetence;

 

    	4

    	 

    

 

(C)       Willful misconduct;

 

(D)       Breach of fiduciary duty involving personal profit;

 

(E)        Intentional failure to perform stated duties;

 

(F)        Willful violation of any law, rule or regulation (other than traffic violations or similar offenses) or final cease
and desist order; or

 

(G)        Material breach by Executive of any provision of this Agreement.

 

(ii)      Notwithstanding the foregoing, Executive’s termination for Cause will not become effective unless the Bank
has delivered to Executive a copy of a resolution duly adopted by the affirmative vote of a majority of the entire membership of
the Board at a meeting of the Board called and held for the purpose of finding (after reasonable notice to Executive as an opportunity
for Executive to be heard before the Board with counsel), that Executive was guilty of the conduct described above and specifying
the particulars of his conduct.

 

(e)           Voluntary Termination by Executive.  In addition to his other rights to terminate under this Agreement,
Executive may voluntarily terminate employment during the term of this Agreement upon at least sixty (60) days prior written notice
to the Board.  Upon Executive’s voluntary termination, he will receive only his compensation and vested rights
and benefits up to the date of his termination.  Following his voluntary termination of employment under this Section
11(e), Executive will be subject to the restrictions set forth in Sections 11(g)(i) and 11(g)(ii) of this Agreement for a period
of one (1) year from his termination date.

 

(f)            Without Cause or With Good Reason.

 

(i)            In addition to termination pursuant to Sections 11(a) through 11(e), the Board may, by written notice to Executive,
immediately terminate his employment at any time for a reason other than Cause (a termination “Without  Cause”)
and Executive may, by written notice to the Board, terminate his employment under this Agreement for “Good Reason,”
as defined below (a termination “With Good Reason”).

 

(ii)           Subject to Section 12 of this Agreement, in the event of termination under this Section 11(f), Executive will receive
a cash payment equal to the lesser of his base salary due for the remaining term of the Agreement or 12 month’s base salary.
Said payment will be made in a lump sum (less applicable deductions and withholdings) within ten (10) calendar days of his termination.

 

(iii)          For purposes of this Agreement “Good Reason” shall mean the occurrence of any of the following events
without the Executive’s consent:

 

(A)       The assignment to Executive of duties that constitute a material diminution of Executive’s authority, duties,
or responsibilities (including reporting requirements);

 

    	5

    	 

    

 

 

(B)        A material diminution in Executive’s base salary;

 

(C)        Relocation of Executive to a location outside a radius of twenty-five (25) miles from the Bank’s corporate
office; or

 

(D)        Any other action or inaction by the Bank or the Bank that constitutes a material breach of this Agreement;

 

provided, that within ninety (90) days after the initial existence
of such event, the Bank shall be given notice and an opportunity, not less than thirty (30) days, to effectuate a cure for such
asserted “Good Reason” by Executive.  Executive’s resignation hereunder for Good Reason shall not occur
later than one hundred fifty (150) days following the initial date on which the event Executive claims constitutes Good Reason
occurred.

 

(g)           Continuing Covenant Not to Compete or Interfere with Relationships.  Regardless of anything herein
to the contrary, following a termination by the Bank or Executive pursuant to Section 11(e) or 11(f):

 

(i)            Executive’s obligations under Section 10(c) of this Agreement will continue in effect; and

 

(ii)           During the period ending on the first anniversary of such termination, Executive will not serve as an officer, director
or employee of any bank holding company, bank, savings association, savings and loan holding company, mortgage company or other
financial institution that offers products or services competing with those offered by the Bank or its subsidiaries or affiliates
from any office within twenty-five (25) miles from the main office of the Bank or any branch of the Bank and, further, Executive
will not interfere with the relationship of the Bank, its subsidiaries or affiliates and any of their employees, agents, or representatives.

 

(h)           To the extent Executive is a member of the Board on the date of termination of employment, Executive will resign
from the Board immediately following such termination of employment. Executive will be obligated to tender this resignation regardless
of the method or manner of termination, and such resignation will not be conditioned upon any event or payment.

 

12.           Termination in Connection with a Change in Control.

 

(a)           For purposes of this Agreement, a “Change in Control” means any of the following events:

 

(i)            Merger: Polonia Bancorp, Inc. (the “Company”) merges into or consolidates with another entity,
or merges another corporation into the Company, 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 immediately before
the merger or consolidation;

 

    	6

    	 

    

 

(ii)           Acquisition of Significant Share Ownership: There is filed, or is 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, as amended, 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 Bank’s voting securities, but this clause (ii) shall not apply to beneficial ownership
of Company voting shares held in a fiduciary capacity by an entity of which the Bank directly or indirectly beneficially owns 50%
or more of its outstanding voting securities;

 

(iii)          Change in Board Composition: During any period of two consecutive years, individuals who constitute 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 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 members) 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 Bank sells to a third party all or substantially all of its assets.

 

(b)           Termination. If within the period ending one year after a Change in Control, (i) the Bank terminates Executive’s
employment Without Cause, or (ii) Executive voluntarily terminates his employment With Good Reason, then (A) all of Executive’s
stock options (granted by Section 9 of this Agreement) which are unvested shall automatically vest and shall become non-forfeitable,
and (B) the Bank will, within ten calendar days of the termination of Executive’s employment, make a lump-sum cash payment
to him equal to one year’s base salary, less applicable deductions and withholdings.

 

(c)           The provisions of Section 12 and Sections 14 through 27, including the defined terms used in such sections, shall
continue in effect until the later of the expiration of this Agreement or one year following a Change in Control.

 

(d)           Notwithstanding anything herein to the contrary, the obligations of Executive pursuant to Section 11(g)(ii) shall
become null and void effective immediately upon a Change in Control.

 

13.             
Indemnification and Liability Insurance.

 

(a)           Indemnification. The Bank agrees to indemnify Executive (and his heirs, executors, and administrators), and
to advance expenses related to this indemnification, to the fullest extent permitted under applicable law and regulations against
any and all expenses and liabilities that Executive reasonably incurs in connection with or arising out of any action, suit, or
proceeding in which he may be involved by reason of his service as a director or Executive of the Bank or any of its affiliates
(whether or not he continues to be a director or Executive at the time of incurring any such expenses or liabilities). Covered
expenses and liabilities include, but are not limited to, judgments, court costs, and attorneys’ fees and the costs of reasonable
settlements, subject to Board approval, if the action is brought against Executive in his capacity as an Executive or director
of the Bank or any of its affiliates. Indemnification for expenses will not extend to matters related to Executive’s termination
for Cause. Notwithstanding anything in this Section 13(a) to the contrary, the Bank will not be required to provide indemnification
prohibited by applicable law or regulation. The obligations of this Section 13 shall survive the term of this Agreement by a period
of six (6) years.

 

    	7

    	 

    

 

(b)           Insurance. During the period for which the Bank must indemnify Executive under this Section, the Bank will
provide Executive (and his heirs, executors, and administrators) with coverage under a directors’ and officers’ liability
policy at the Bank’s expense, that is at least equivalent to the coverage provided to directors and senior executives of
the Bank.

 

14.           Reimbursement of Executive’s Expenses 

 

(a)           To Enforce this Agreement.  The Bank will reimburse Executive for all out-of-pocket expenses,
including, without limitation, reasonable attorney fees, incurred by Executive in connection with his successful enforcement of
the Bank’s obligations under this Agreement.  Successful enforcement means the grant of an award of money or the
requirement that the Bank take some specified action: (i) as a result of court order; or (ii) otherwise following an initial failure
of the Bank to pay money or take action promptly following receipt of a written demand from Executive stating the reason that the
Bank must pay money or take action under this Agreement.

 

(b)           For Attorney’s Fees Relating to the Drafting and Negotiation of this Agreement. The Bank shall reimburse
Executive for attorney’s fees incurred in connection with the drafting, review and negotiation of this Agreement in an amount
not to exceed $7,500. Executive shall provide the Bank with an invoice for such legal services indicating (i) the name of counsel,
(ii) the date range of legal services, (iii) the amount of time expended by counsel, (iv) the hourly rate of counsel, and (v) the
total cost of services; but Executive shall not be required to provide the Bank with specific descriptions or specific dates of
services provided.

 

15.           Limitation of Benefits under Certain Circumstances.  If the payments and benefits pursuant
to Section 12 of this Agreement, either alone or together with other payments and benefits Executive has the right to receive from
the Bank, would constitute a “parachute payment” under Section 280G of the Internal Revenue Code of 1986, as amended
(the “Code”), the payments and benefits pursuant to Section 12 shall be reduced or revised, in the manner determined
by Executive, by the amount, if any, which is the minimum necessary to result in no portion of the payments and benefits under
Section 12 being non-deductible to the Bank pursuant to Section 280G of the Code and subject to the excise tax imposed under Section
4999 of the Code.  The Bank’s independent public accountants will determine any reduction in the payments and benefits
to be made pursuant to Section 12; the Bank will pay for the accountant’s opinion.  If the Bank and/or Executive
do not agree with the accountant’s opinion, the Bank will pay to Executive the maximum amount of payments and benefits pursuant
to Section 12, as selected by Executive, that the opinion indicates have a high probability of not causing any payments and benefits
to be non-deductible to the Bank and subject to the imposition of the excise tax imposed under Section 4999 of the Code.  The
Bank may also request, and Executive has the right to demand that the Bank request, a ruling from the IRS as to whether the disputed
payments and benefits pursuant to Section 12 have such tax consequences.   The Bank will promptly prepare and file
the request for a ruling from the IRS, but in no event later than thirty (30) days from the date of the accountant’s opinion
referred to above.  The request will be subject to Executive’s approval prior to filing; Executive shall not unreasonably
withhold his approval.  The Bank and Executive agree to be bound by any ruling received from the IRS and to make appropriate
payments to each other to reflect any IRS rulings, together with interest at the applicable federal rate provided for in Section
7872(f)(2) of the Code.  Nothing contained in this Agreement shall result in a reduction of any payments or benefits
to which Executive may be entitled upon termination of employment other than pursuant to Section 12 hereof, or a reduction in the
payments and benefits specified in Section 12, below zero.

 

    	8

    	 

    

 

16.           Required Provisions. In the event any of the foregoing provisions of this Agreement conflict with the
terms of this Section 16, this Section 16 shall prevail.

 

(a)           The board of directors of the Bank
may terminate the Executive’s employment at any time, but any termination by the Bank, other than termination for Cause,
shall not prejudice the Executive’s right to compensation or other benefits under this Agreement. The Executive shall not
have the right to receive compensation or other benefits for any period after termination for Cause as defined in Section 3.2 of
this Agreement.

 

(b)           If the 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. Section 1818(e)(3) or (g)(1), the Bank’s obligations under
this Agreement shall be suspended as of the date of service, unless stayed by appropriate proceedings. If the charges in the notice
are dismissed, the Bank may, in its discretion: (i) pay the 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 the 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. Section 1818(e)(4) or (g)(1), all obligations of the Bank under this Agreement
shall terminate as of the effective date of the order, but vested rights of the contracting parties shall not be affected.

 

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

 

(e)           All obligations under this Agreement
shall be terminated, except to the extent a determination is made that continuation of the contract is necessary for the continued
operation of the Employer (1) by the Comptroller of the Currency, or his or her designee (the “Comptroller”), at the
time the Federal Deposit Insurance Corporation enters into an agreement to provide assistance to or on behalf of the Employer under
the authority contained in Section 13(c) of the FDIA; or (2) by the Comptroller, at the time the Comptroller approves a supervisory
merger to resolve problems related to operation of the Employer or when the Employer is determined by the Comptroller to be in
an unsafe and unsound condition. Any rights of the Executive that have already vested, however, shall not be affected by such action.

 

    	9

    	 

    

 

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

 

(g)          The Bank retains the right to demand
the return of any severance payment made to the Executive under Section 11 or 12 of this Agreement and the value of any benefit
provided under Section 13 of this Agreement in the event the Bank obtains information indicating that the Executive has committed,
is substantially responsible for, or has violated, the respective acts or omissions, conditions, or offenses outlined under 12
C.F.R. §359.4(a)(4). In the event the Bank exercises its right to demand the return of any payment made under this Agreement,
the Executive will return the payments to the Bank within 90 days of receipt of written notice from the Bank that the Executive
has committed, is substantially responsible for, or has violated, the respective acts or omissions, conditions, or offenses outlined
under 12 C.F.R. §359.4(a)(4).

 

17.           Injunctive Relief.  Upon a breach or threatened breach of Section 11(g) of this Agreement
or the prohibitions upon disclosure contained in Section 10(c) of this Agreement, the parties agree that there is no adequate remedy
at law for such breach, and the Bank shall be entitled to injunctive relief restraining Executive from such breach or threatened
breach, but such relief shall not be the exclusive remedy for a breach of this Agreement.  The parties further agree
that Executive, without limitation, may seek injunctive relief to enforce the obligations of the Bank under this Agreement.

 

18.           Successors and Assigns.

 

(a)          This Agreement shall inure to the benefit of and be binding upon any corporate or other successor of the Bank which
shall acquire, directly or indirectly, by merger, consolidation, purchase or otherwise, all or substantially all of the assets
or stock of the Bank.

 

(b)          Since the Bank is contracting for the unique and personal skills of Executive, Executive shall not assign or delegate
his rights or duties under this Agreement without first obtaining the written consent of the Bank.

 

19.           No Mitigation.  Executive shall not be required to mitigate the amount of any payment provided
for in this Agreement by seeking other employment or otherwise and no such payment shall be offset or reduced by the amount of
any compensation or benefits provided to Executive in any subsequent employment.

 

20.           Notices.  All notices, requests, demands and other communications in connection with this
Agreement shall be made in writing and shall be deemed to have been given when delivered by hand or 48 hours after mailing at any
general or branch United States Post Office, by registered or certified mail, postage prepaid, addressed to the Bank at its principal
business offices and to Executive at his home address as maintained in the records of the Bank.

 

    	10

    	 

    

 

21.           No Plan Created by this Agreement.  Executive and the Bank expressly declare and agree that
this Agreement was negotiated among them and that no provision or provisions of this Agreement are intended to, or shall be deemed
to, create any plan for purposes of the Employee Retirement Income Security Act of 1974 (“ERISA”) or any other law
or regulation, and each party expressly waives any right to assert the contrary.  Any assertion in any judicial or administrative
filing, hearing, or process that an ERISA plan was created by this Agreement shall be deemed a material breach of this Agreement
by the party making the assertion.

 

22.           Amendments.  No amendments or additions to this Agreement shall be binding unless made in
writing and signed by all of the parties, except as herein otherwise specifically provided.

 

23.           Applicable Law.  Except to the extent preempted by federal law, the laws of the Commonwealth
of Pennsylvania shall govern this Agreement in all respects, whether as to its validity, construction, capacity, performance or
otherwise.

 

24.           Severability.  The provisions of this Agreement shall be deemed severable and the invalidity
or unenforceability of any one provision shall not affect the validity or enforceability of the other provision of this Agreement.

 

25.           Headings.  Headings contained in this Agreement are for convenience of reference only.

 

26.           Entire Agreement.  This Agreement, together with any modifications subsequently agreed to
in writing by the parties, shall constitute the entire agreement among the parties with respect to the foregoing subject matter,
other than written agreements applicable to specific plans, programs or arrangements described in Sections 5 and 6.

 

27.           Source of Payments.  All payments provided for under this Agreement shall be timely paid
in cash or check from the general funds of the Bank. Notwithstanding any provision in this Agreement to the contrary, to the extent
that payments and benefits, as provided by this Agreement, are paid or provided to the Executive by the Company, such compensation
payments and benefits paid or provided by the Company will be subtracted from any amount due simultaneously to the Executive under
similar provisions of this Agreement.

 

28.           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 subsection (b) below. In no event shall Executive, directly or indirectly, designate
the calendar year of payment.

 

    	11

    	 

    

 

(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 11(f)(ii) or 12(b) 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 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 11(f)(ii) or 12(b) 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)          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 Internal Revenue Section 409A of the Code.

 

 

[signature page follows]

 

 

 

 

 

    	12

    	 

    

 

IN WITNESS WHEREOF, the parties hereto
have executed this Agreement on the date first written above.

 

 

 

	POLONIA BANK
	 
	By:	/s/ Robert Woltjen
	 	For the Entire Board of Directors
	 
	EXECUTIVE
	 
	By:	/s/ Joseph T. Svetik
	 	Joseph T. Svetik

 

 

 

 

 

 

 

 

    	13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00245-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00245-of-00352.parquet"}]]