Document:

Exhibit 10.5

 Exhibit 10.5 
  
 PROPOSED FORM OF 
 EMPLOYMENT AGREEMENT 
  
 THIS AGREEMENT
(the “Agreement”), made this              day of
                    , 2004, by and between OCEAN SHORE HOLDING CO., a federally chartered corporation (the “Company”),
OCEAN CITY HOME BANK, a federally chartered savings association (the “Bank”), and STEVEN E. BRADY (the “Executive”). 
  
 WHEREAS, Executive serves in a position of substantial responsibility; 
  
 WHEREAS, the Company and the Bank wish to assure the services of Executive for the period provided in this Agreement;
and 
  
 WHEREAS, Executive is willing to serve in the
employ of the Bank on a full-time basis for said period. 
  
 NOW, THEREFORE, in consideration of the mutual covenants herein contained, and upon the other terms and conditions hereinafter provided, the parties hereby agree as follows: 
  
 1. Employment. Executive is employed as the President and Chief
Executive Officer of the Company and the Bank. Executive shall perform all duties and shall have all powers which are commonly incident to the offices of President and Chief Executive Officer or which, consistent with those offices, are delegated to
him by the Board of Directors of the Bank or the Company. During the term of this Agreement, Executive also agrees to serve, if elected, as an officer and/or director of any subsidiary of the Company and the Bank and in such capacity will carry out
such duties and responsibilities reasonably appropriate to that office. 
  
 2. Location and Facilities. Executive will be furnished with the working facilities and staff customary for executive officers with the title 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 Company and the Bank, or at such other site or sites customary for such offices. 
  
 3. Term. 
  

	 	a.	The term of this Agreement shall be (i) the initial term, consisting of the period commencing on the date of this Agreement (the “Effective Date”) and ending on the third
anniversary of the Effective Date, plus (ii) any and all extensions of the initial term made pursuant to this Section 3. 

  

	 	b.	Commencing on the first year anniversary date of this Agreement, and continuing on each anniversary thereafter, the disinterested members of the boards of directors of the Bank and
the Company may extend the Agreement an additional year such that the remaining term of the Agreement shall be thirty-six (36) months, unless Executive elects not to extend the term of this Agreement by giving written notice in accordance with
Section 19 of this Agreement. The Board of Directors of the Bank (the “Board”) will review the Agreement and Executive’s performance annually for purposes of determining whether to extend the Agreement and the rationale and results
thereof shall be included in the minutes of the Board’s meeting. The Board of Directors of the Bank shall give notice to Executive as soon as possible after such review as to whether the Agreement is to be extended. 

  
 4. Base Compensation. 
  

	 	a.	The Company and the Bank agree to pay Executive during the term of this Agreement a base salary at the rate of
$                     per year, payable in accordance with customary payroll practices. 

  

	 	b.	The Board shall review annually the rate of Executive’s base salary based upon factors they deem relevant, and may maintain or increase his salary, provided that no such action
shall reduce the rate of salary below the rate in effect on the Effective Date. 

  

	 	c.	In the absence of action by the Board, Executive shall continue to receive salary at the annual rate specified on the Effective Date or, if another rate has been established under
the provisions of this Section 4, the rate last properly established by action of the Board under the provisions of this Section 4. 

  
 5. Bonuses. Executive shall be entitled to participate in discretionary bonuses or other incentive compensation programs that the Company
and the Bank may award from time to time to senior management employees pursuant to bonus plans or otherwise. 
  
 6. Benefit Plans. Executive shall be entitled to participate in such life insurance, medical, dental, pension, profit sharing, retirement
and stock-based compensation plans and other programs and arrangements as may be approved from time to time by the Company and the Bank for the benefit of their employees. 
  
 7. Vacation and Leave. 
  

	 	a.	Executive shall be entitled to 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, Executive shall be entitled, without loss of pay, to absent himself voluntarily from the performance of his
employment for such 

  

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additional periods of time and for such valid and legitimate reasons as the Board may, in its discretion, determine. Further, the Board may grant to
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. 

  
 8. Expense Payments, Reimbursements and Memberships. 
  

	 	a.	Executive shall be reimbursed for all reasonable out-of-pocket business expenses that he shall incur in connection with his services under this Agreement upon substantiation of such
expenses in accordance with applicable policies of the Company and the Bank. 

  

	 	b.	The Bank shall continue to pay the annual dues for a golf membership for Executive (in his own name) at Hidden Creek Golf Club in Egg Harbor Township, New Jersey (“Golf
Membership”). Executive shall use the membership to further the best interests of the Bank. The Membership Deposit, in the amount of $31,000, has been paid by the Bank and Executive vests in one-eighth of the refundable portion of the
Membership Deposit over a period of eight (8) years ending in 2009. In the event Executive ceases being a member of Hidden Creek Golf Club prior to the end of 2009, the refundable portion of the Membership Deposit shall be apportioned between the
Bank and Executive with Executive’s share calculated at $3,100 per year for each year that has elapsed since 2002. In the event of termination of Executive by the Bank prior to the end of 2009, Executive shall have the option of terminating his
Golf Membership or continuing this Golf Membership. In the event Executive opts to terminate his Golf Membership, the refundable Membership Deposit shall be apportioned between the Bank and Executive with Executive’s share calculated at $3,100
per year for each year that has elapsed since 2002. In the event Executive opts to continue his Golf Membership, Executive shall be entitled to the entire Membership Deposit. Executive shall reimburse the Bank $3,100 per year for each post-2001 year
between the year of termination and 2009. In addition, the Bank shall provide Executive with a health club membership. 

  
 9. Automobile Allowance. During the term of this Agreement, Executive shall be entitled to an automobile allowance on terms no
less favorable that those in effect immediately prior to the execution of this Agreement. Executive shall comply with reasonable reporting and expense limitations on the use of such automobile as may be established by the Company or the Bank from
time to time, and the Company or the Bank shall annually include on Executive’s Form W-2 any amount of income attributable to Executive’s personal use of such automobile. 
  
 10. Loyalty and Confidentiality. 
  

	 	a.	 During the term of this Agreement Executive: (i) shall devote all his time, attention, skill, and efforts to the faithful performance of his duties hereunder;
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 which will not 

  

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present any conflict of interest with the Company and the Bank or any of their subsidiaries or affiliates, unfavorably affect the performance of
Executive’s duties pursuant to this Agreement, or violate any applicable statute or regulation and (ii) shall not engage in any business or activity contrary to the business affairs or interests of the Company and the Bank.

  

	 	b.	Nothing contained in this Agreement shall prevent or limit Executive’s right to invest in the capital stock or other securities of any business dissimilar from that of the
Company and 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 Company and the Bank; the names or addresses of any
of its borrowers, depositors and other customers; any information concerning or obtained from such customers; and any other information concerning the Company and the Bank 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 shall he employ such information in any way other than for the benefit of the Company and 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 shall terminate upon his death during the term of this Agreement, in which event Executive’s estate shall be
entitled to receive the compensation due to Executive through the last day of the calendar month in which his death occurred. 

  

	 	b.	Retirement. This Agreement shall be terminated 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 that results in Executive becoming eligible for long-term disability benefits under any
long-term disability plans of the Company and the Bank (or, if there are no such plans in effect, 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 shall determine whether or not Executive is and continues to be permanently disabled for purposes of this Agreement in 

  

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good faith, based upon competent medical advice and other factors that they reasonably believe to be relevant. As a condition to any benefits, the Board may
require Executive to submit to such physical or mental evaluations and tests as it deems reasonably appropriate. 

  

	 	ii.	In the event of such Disability, Executive’s obligation to perform services under this Agreement will terminate. The Bank will pay Executive, as Disability pay, an amount equal
to one hundred percent (100%) of Executive’s bi-weekly rate of base salary in effect as of the date of his termination of employment due to Disability. Disability payments will be made on a monthly basis and will commence on the first day of
the month following the effective date of Executive’s termination of employment for Disability and end on the earlier of: (A) the date he returns to full-time employment at the Bank in the same capacity as he was employed prior to his
termination for Disability; (B) his death; or (C) upon his attainment of age 65 or (D) the date this Agreement would have expired had Executive’s employment not terminated by reason of disability. Such payments shall be reduced by the amount of
any short- or long-term disability benefits payable to Executive under any other disability programs sponsored by the Company and the Bank. In addition, during any period of Executive’s Disability, Executive and his dependents shall, to the
greatest extent possible, continue to be covered under all benefit plans (including, without limitation, retirement plans and medical, dental and life insurance plans) of the Company and the Bank, in which Executive participated prior to his
Disability on the same terms as if Executive were actively employed by the Company and 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 except for vested benefits. Termination for Cause shall mean termination because of, in the good faith determination of the Board,
Executive’s: 

  

	 	(1)	Personal dishonesty; 

  

	 	(2)	Incompetence; 

  

	 	(3)	Willful misconduct; 

  

	 	(4)	Breach of fiduciary duty involving personal profit; 

  

	 	(5)	Intentional failure to perform stated duties under this Agreement; 

  

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	 	(6)	Willful violation of any law, rule or regulation (other than traffic violations or similar offenses) that reflects adversely on the reputation of the Company and the Bank, any
felony conviction, any violation of law involving moral turpitude, or any violation of a final cease-and-desist order; or 

  

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

  

	 	ii.	Notwithstanding the foregoing, Executive shall not be deemed to have been terminated for Cause by the Company and the Bank unless there shall have been 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 such Board called and held for the purpose (after reasonable notice to Executive and an opportunity for Executive to be heard
before the Board with counsel), of finding that, in the good faith opinion of the Board, Executive was guilty of the conduct described above and specifying the particulars thereof. 

  

	 	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. Following a 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 four months from his termination date. Executive will be entitled to receive his vested rights and employee benefits up to his date of termination and his base salary through the last day of the four-month period.

  

	 	f.	Without Cause or With Good Reason. 

  

	 	i.	In addition to termination pursuant to Sections 11a. through 11e., 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, immediately terminate this Agreement at any time within ninety (90) days following an event constituting “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 shall be entitled to receive his base salary for the
remaining term of the Agreement paid in one lump sum within ten (10) calendar days of such termination. Also, in such event, Executive shall, for the remaining term of the Agreement, receive the benefits he would have received during the remaining
term of the Agreement under any retirement programs (whether tax-qualified or non-qualified) in which Executive participated prior to his termination (with the amount of the benefits determined by reference to the benefits received by Executive or
accrued on his behalf under such programs during the twelve (12) months preceding his termination) and continue to participate in any benefit plans of the Company and the Bank that provide health (including medical and dental), life or 

  

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disability insurance, or similar coverage, upon terms no less favorable than the most favorable terms provided to senior executives of the Company and the
Bank during such period. In the event that the Company and the Bank are unable to provide such coverage by reason of Executive no longer being an employee, the Company and the Bank shall provide Executive with comparable coverage on an individual
policy basis. 

  

	 	iii.	“Good Reason” shall exist if, without Executive’s express written consent, the Company and the Bank materially breach any of their respective obligations under this
Agreement. Without limitation, such a material breach shall be deemed to occur upon any of the following: 

  

	 	(1)	A material reduction in Executive’s responsibilities or authority in connection with his employment with the Company or the Bank; 

  

	 	(2)	Assignment to Executive of duties of a non-executive nature or duties for which he is not reasonably equipped by his skills and experience; 

  

	 	(3)	Failure of Executive to be nominated or renominated to the Board; 

  

	 	(4)	A reduction in salary or benefits contrary to the terms of this Agreement, or, following a Change in Control as defined in Section 12 of this Agreement, any reduction in salary or
material reduction in benefits below the amounts to which Executive was entitled prior to the Change in Control; 

  

	 	(5)	Termination of incentive and benefit plans, programs or arrangements, or reduction of Executive’s participation to such an extent as to materially reduce their aggregate value
below their aggregate value as of the Effective Date; 

  

	 	(6)	A requirement that Executive relocate his principal business office or his principal place of residence outside of the area consisting of a twenty-five (25) mile radius from the
current main office and any branch of the Bank, or the assignment to Executive of duties that would reasonably require such a relocation; or 

  

	 	(7)	Liquidation or dissolution of the Company or the Bank. 

  

	 	iv.	 Notwithstanding the foregoing, a reduction or elimination of Executive’s benefits under one or more benefit plans maintained by the Company and the Bank as
part of a good faith, overall reduction or elimination of such plans or plans or benefits thereunder applicable to all participants in a manner that does not discriminate against Executive (except as such discrimination may be necessary to comply
with law) shall not constitute an event of Good Reason 

  

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or a material breach of this Agreement, provided that benefits of the type or to the general extent as those offered under such plans prior to such reduction
or elimination are not available to other officers of the Company and the Bank or any company that controls either of them under a plan or plans in or under which Executive is not entitled to participate. 

  

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

  

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

  

	 	ii.	During the period ending on the first anniversary of such termination, Executive shall not serve as an officer, director or employee of any bank holding company, bank, savings
association, savings and loan holding company, or mortgage company (any of which, a “Financial Institution”) which Financial Institution offers products or services competing with those offered by the Bank from any office within fifty (50)
miles from the main office or any branch of the Bank and shall not interfere with the relationship of the Company and the Bank and any of its employees, agents, or representatives. 

  
 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: The Company merges into or consolidates with another corporation, 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. 

  

	 	ii.	Acquisition of Significant Share Ownership: The Company files, or is required to file, 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 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 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. 

  
 A Change in Control shall not occur as a result of a mutual holding company reorganization or second-step conversion of the
Bank from the mutual to the stock form of ownership. 
  

	 	b.	 Termination. If within the period ending two (2) years after a Change in Control, (i) the Company and the Bank shall terminate Executive’s employment
Without Cause, or (ii) Executive voluntarily terminates his employment With Good Reason, the Company and the Bank shall, within ten calendar days of the termination of Executive’s employment, make a lump-sum cash payment to him equal to 2.99
times Executive’s average Annual Compensation over the five (5) most recently completed calendar years ending with the year immediately preceding the effective date of the Change in Control. In determining Executive’s average Annual
Compensation, Annual Compensation shall include base salary and any other taxable income, including, but not limited to, amounts related to the granting, vesting or exercise of restricted stock or stock option awards, commissions, bonuses (whether
paid or accrued for the applicable period), as well as, retirement benefits, director or committee fees and fringe benefits paid or to be paid to Executive or paid for Executive’s benefit during any such year, profit sharing, employee stock
ownership plan and other retirement contributions or benefits, including to any tax-qualified plan or arrangement (whether or not taxable) made or accrued on behalf of Executive of such year. The cash payment made under this Section 12b shall
be made in lieu of any payment also required under Section 11f. of this Agreement because of a termination in such period. Executive’s rights under Section 11f are not otherwise affected by this Section 12. Also, in such event, Executive shall,
for a thirty-six (36) month period following his termination of employment, receive the benefits he would have received over such period under any retirement programs (whether tax-qualified or nonqualified) in which Executive participated prior to
his termination (with the amount of the benefits determined by reference to the benefits received by Executive or accrued on his behalf under such programs during the twelve (12) months preceding the Change in Control) and continue to participate in
any benefit plans of the Company and the Bank that provide health (including medical and dental), life or disability insurance, or similar coverage upon terms no less favorable than the most 

  

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favorable terms provided to senior executives during such period. In the event that the Company and the Bank are unable to provide such coverage by reason of
Executive no longer being an employee, the Company and the Bank shall provide Executive with comparable coverage on an individual policy. 

  

	 	c.	The provisions of Section 12 and Sections 14 through 25, including the defined terms used in such sections, shall continue in effect until the later of the expiration of this
Agreement or two years following a Change in Control. 

  
 13. Indemnification and Liability Insurance. 
  

	 	a.	Indemnification. The Company and the Bank agree to indemnify Executive (and his heirs, executors, and administrators), and to advance expenses related thereto, to the fullest
extent permitted under applicable law and regulations against any and all expenses and liabilities reasonably incurred by him in connection with or arising out of any action, suit, or proceeding in which he may be involved by reason of his having
been a director or Executive of the Company, the Bank or any of their subsidiaries (whether or not he continues to be a director or Executive at the time of incurring any such expenses or liabilities) such expenses and liabilities to include, but
not be limited to, judgments, court cost, and attorney’s fees and the costs of reasonable settlements, such settlements to be approved by the Board, if such action is brought against Executive in his capacity as an Executive or director of the
Company and the Bank or any of their subsidiaries. Indemnification for expenses shall not extend to matters for which Executive has been terminated for Cause. Nothing contained herein shall be deemed to provide indemnification prohibited by
applicable law or regulation. Notwithstanding anything herein to the contrary, the obligations of this Section 13 shall survive the term of this Agreement by a period of six (6) years. 

  

	 	b.	Insurance. During the period in which indemnification of Executive is required under this Section, the Company and the Bank shall provide Executive (and his heirs, executors,
and administrators) with coverage under a directors’ and officers’ liability policy at the expense of the Company and the Bank, at least equivalent to such coverage provided to directors and senior executives of the Company and the Bank.

  
 14. Reimbursement of Executive’s
Expenses to Enforce this Agreement. The Company and the Bank shall reimburse Executive for all out-of-pocket expenses, including, without limitation, reasonable attorney’s fees, incurred by Executive in connection with successful
enforcement by Executive of the obligations of the Company and the Bank to Executive under this Agreement. Successful enforcement shall mean the grant of an award of money or the requirement that the Company and the Bank take some action specified
by this Agreement: (i) as a result of court order; or (ii) otherwise by the Company and the Bank following an initial failure of the Company and the Bank to pay such money or take such action promptly after written demand therefor from Executive
stating the reason that such money or action was due under this Agreement at or prior to the time of such demand. 
  

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 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 which Executive has the right to receive from the Company and the Bank, would constitute a a “parachute payment” under Section 280G of 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 Company and the Bank pursuant to Section 280G of the Code and subject to the excise tax imposed under Section 4999 of the Code. The determination of any reduction in the payments and benefits to be made pursuant to
Section 12 shall be based upon the opinion of the Company and the Bank’s independent public accountants and paid for by the Company and the Bank. In the event that the Company, the Bank and/or Executive do not agree with the opinion of such
counsel, (i) the Company and the Bank shall pay to Executive the maximum amount of payments and benefits pursuant to Section 12, as selected by Executive, which such opinion indicates there is a high probability do not result in any of such payments
and benefits being non-deductible to the Company and the Bank and subject to the imposition of the excise tax imposed under Section 4999 of the Code and (ii) the Company and the Bank may request, and Executive shall have the right to demand that
they request, a ruling from the IRS as to whether the disputed payments and benefits pursuant to Section 12 have such consequences. Any such request for a ruling from the IRS shall be promptly prepared and filed by the Company and the Bank, but in
no event later than thirty (30) days from the date of the opinion of counsel referred to above, and shall be subject to Executive’s approval prior to filing, which shall not be unreasonably withheld. The Company, 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 such rulings, together with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code. Nothing contained herein
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.

  
 16. Injunctive Relief. If there is a breach or
threatened breach of Section 11g. of this Agreement or the prohibitions upon disclosure contained in Section 10c. of this Agreement, the parties agree that there is no adequate remedy at law for such breach, and that the Company 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 hereunder for such breach. The parties hereto likewise agree that Executive, without limitation, shall be
entitled to injunctive relief to enforce the obligations of the Company and the Bank under this Agreement. 
  
 17. Successors and Assigns. 
  

	 	a.	This Agreement shall inure to the benefit of and be binding upon any corporate or other successor of the Company and 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 Company and the Bank. 

  

	 	b.	 Since the Company and the Bank are contracting for the unique and personal skills of Executive, Executive shall be precluded from assigning or delegating his rights
or 

  

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duties hereunder without first obtaining the written consent of the Company and the Bank. 

  
 18. 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.

  
 19. 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 Company and/or the Bank at their principal business offices and to Executive at his home address as maintained in the records of the Company and the Bank. 
  
 20. No Plan Created by this Agreement. Executive, the Company
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 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 such a plan was so created by this Agreement shall be
deemed a material breach of this Agreement by the party making such an assertion. 
  
 21. 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. 
  
 22. Applicable Law. Except to the extent preempted by Federal
law, the laws of the State of New Jersey shall govern this Agreement in all respects, whether as to its validity, construction, capacity, performance or otherwise. 
  
 23. Severability. The provisions of this Agreement shall be deemed severable and the invalidity or
unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof. 
  
 24. Headings. Headings contained herein are for convenience of reference only. 
  
 25. Entire Agreement. This Agreement, together with any understanding or modifications thereof as agreed to in
writing by the parties, shall constitute the entire agreement among the parties hereto with respect to the subject matter hereof, other than written agreements with respect to specific plans, programs or arrangements described in Sections 5 and 6.

  

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 26. Required Provisions. In the event any of the foregoing provisions of this Section 26
are in conflict with the terms of this Agreement, this Section 26 shall prevail. 
  

	 	a.	The Bank may terminate Executive’s employment at any time, but any termination by the Bank, other than Termination for 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 as defined in Section 7 hereinabove. 

  

	 	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. Section 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 their 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. Section 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. Section 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 of the Bank under this contract shall be terminated, except to the extent determined that continuation of the contract is necessary for the continued operation of
the institution: (i) by the Director of the OTS (or his designee), the FDIC or the Resolution Trust Corporation, at the time the FDIC enters into an agreement to provide assistance to or on behalf of the Bank under the authority contained in Section
13(c) of the Federal Deposit Insurance Act, 12 U.S.C. Section 1823(c); or (ii) by the Director of the OTS (or his designee) at the time the Director (or his designee) approves a supervisory merger to resolve problems related to the operations of the
Bank or when the Bank is determined by the Director to be in an unsafe or unsound condition. Any rights of the parties that have already vested, however, shall not be affected by such action. 

  

	 	f.	Any payments made to Executive pursuant to this Agreement, or otherwise, are subject to and conditioned upon compliance with 12 U.S.C. Section 1828(k) and 12 C.F.R. Section 545.121
and any rules and regulations promulgated thereunder. 

  

 13 

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

							
	 ATTEST:
	 	 	 	OCEAN SHORE HOLDING CO.
				
	 	 	 	 	By:	 	 
	 Corporate Secretary
	 	 	 	 	 	 For the Entire Board of Directors

			
	 ATTEST:
	 	 	 	OCEAN CITY HOME BANK
				
	 	 	 	 	By:	 	 
	 Corporate Secretary
	 	 	 	 	 	 For the Entire Board of Directors

			
	 WITNESS:
	 	 	 	EXECUTIVE
				
	 	 	 	 	By:	 	 
	 Corporate Secretary
	 	 	 	 	 	 

  

 14Exhibit 10.6

 Exhibit 10.6 
  
 OCEAN CITY HOME BANK 
 EXECUTIVE INCENTIVE RETIREMENT PLAN 
  
 Article I 
 Purpose 
  
 The purpose of the Ocean City Home Bank Executive Incentive Retirement Plan is to assist the Bank in retaining and
attracting officers of exceptional ability. 
  
 Article II

 Definitions 
  
 For the purposes of this Plan, the following words and phrases shall have the meanings indicated, unless the context clearly indicates otherwise:

  
 “Bank” means Ocean City Home Bank, Ocean City, New
Jersey. 
  
 “Beneficiary” means the person, persons or
entity designated by the Participant to receive benefits payable under the Plan. 
  
 “Board” means the Board of Directors of the Bank. 
  
 “Cause” shall mean termination because of the Employee’s personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated
duties, willful violation of any law, rule or regulation (other than traffic violations or similar infractions) or a final cease-and-desist order. 
  
 “Change in Control” means any of the following: 
  

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

  

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

  

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

  

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

  

 A Change of Control shall not occur solely as a result of a conversion of the Bank from the mutual stock
form of organization (“Conversion”) or reorganization of the Bank into the mutual holding company form of ownership (“reorganization”). 
  
 “Declared Rate” the greater of (i) five (5) percent or (ii) the prime rate as published in the Wall Street Journal plus two (2) percentage
points. Notwithstanding anything in this Plan to the contrary, the Declared Rate shall not exceed ten (10) percent. The formula used to establish the Declared Rate may be amended by a resolution of the Board on a prospective basis. 
  
 “Deferral Bonus” means an award pursuant to Section 3.2 of the
Plan. 
  
 “Deferred Benefit Account” means the account
maintained on the books of the Bank for each Participant pursuant to Article IV. A Participant’s Deferred Benefit Account shall be utilized solely as a device for the measurement and determination of the amounts to be paid to the Participant
pursuant to this Plan. A Participant’s Deferred Benefit Account shall not constitute or be treated as a trust fund of any kind. 
  
 “Designation of Form for Payment” means the agreement filed by a Participant designating the manner in which the Participant’s Deferred
Benefit Account balance shall be paid to the Participant or his beneficiary. 
  
 “Determination Date” means the date on which the amount of a Participant’s Deferred Benefit Account is determined as provided in Article IV hereof. The last day of each Plan Year shall be the
Determination Date. 
  
 “Disability” means a physical or
mental condition which constitutes a disability within the meaning of Section 22(e)(3) of the Internal Revenue Code of 1986, as amended. 
  
 “Participant” means any officer of the Bank who is designated as a Participant by the Board. 
  
 “Plan Year” means a twelve month period commencing January 1st and
ending the following December 31st. The first Plan Year shall commence on January 1, 2002 and end on December 31, 2002. 
  
 Article III 
 Participation and
Benefits 
  
 Section 3.1 Participation. 
  
 Participation in the Plan shall be limited to those officers of the Bank
designated as Participants by resolution of the Board. The Board may, upon designation of an officer as a Participant, establish such terms and conditions of participation as it deems appropriate, including, but not limited to, the rate at which
Deferral Bonus Awards shall vest with respect to such Participant. The initial Participants, and the period over which Deferred Benefit Accounts of such initial Participants shall vest, are identified in Appendix A to this Plan. Notwithstanding
anything herein to the contrary, designation as a Participant shall not entitle a Participant to the award of a Deferral Bonus in a specific Plan Year. The Board may terminate an officer’s status as a Participant on a prospective basis,
provided, however, that such termination shall not affect a Participant’s previously accrued benefits. 
  

 2 

 Section 3.2 Amount of Deferral Bonus. 
  
 For any Plan Year, a Participant’s Deferral Bonus, if any, shall be determined by reference to the attainment of
criteria established by the Board on an annual basis. Such criteria shall relate to the financial performance of the Bank and shall be subject to adjustment for extraordinary items to the extent deemed appropriate by the Board. For any Plan year
after the initial Plan Year, the Board shall, by resolution, establish such criteria not later than March 31 of such year. For the initial Plan Year, the criteria and related awards for the initial Participants are set forth in Appendix B of this
Plan. A Deferral Bonus may be expressed as a percentage of the Participant’s cash compensation or as otherwise determined by the Board. The Deferral Bonus, if any, shall be credited to a Participant’s Deferred Benefit Account as of the
last day of the Plan Year to which the award relates. 
  
 Section 3.3
Accelerated Vesting of Deferral Bonus Award. 
  
 Unless otherwise determined by the Board at the time an officer is designated as a Participant, a Participant’s Deferral Bonus Awards shall automatically vest upon (i) the Participant’s death or Disability or (ii) upon the
occurrence of a Change in Control. 
  
 Article IV

 Deferred Benefit Account 
  
 Section 4.1 Determination of Account. 
  
 Each Participant’s Deferred Benefit Account as of each Determination Date shall consist of the balance of the Participant’s Deferred Benefit
Account as of the immediately preceding Determination Date plus the Participant’s Deferral Bonus, if any, awarded since the immediately preceding Determination Date. The Deferred Benefit Account of each Participant shall be reduced by the
amount of all distributions, if any, made from such Deferred Benefit Account since the preceding Determination Date. 
  
 Section 4.2 Crediting of Account. 
  
 As of each Determination Date, the Participant’s Deferred Benefit Account shall be increased by the amount of interest earned since the preceding
Determination Date. Interest shall be based upon the Declared Rate, which shall be adjusted annually on the first business day of the Plan Year to apply during such Plan Year. Interest shall be based upon the average daily balance of the
Participant’s Deferred Benefit Account since the last preceding Determination Date, but after the Deferred Benefit Account has been adjusted for any contributions to be credited as of such day. 
  
 Section 4.3 Statement of Accounts. 
  
 The Bank shall provide each Participant, within 120 days after the close of
each Plan Year, a statement in such form as the Bank deems desirable, setting forth the balance to the credit of such Participant in his Deferred Benefit Account as of the last day of the preceding Plan Year. 
  

 3 

 Article V 
 Benefits 
  
 Section 5.1 Termination
of Service. 
  
 Upon any termination of service of the
Participant with the Bank, other than for Cause, the Bank shall pay to the Participant a Deferral Benefit equal to the amount of his vested Deferred Benefit Account. Payment of the Participant’s vested Deferred Benefit Account following an
event described in this Section 5.1 shall commence on a date determined in accordance with Section 5.3. Notwithstanding anything in this Plan to the contrary, no benefit shall be payable to a Participant under this Plan if a Participant’s
termination of service is for Cause. 
  
 Section 5.2 Form of Benefit
Payment. 
  

	 	(a)	Upon the occurrence of an event described in Section 5.1, the Bank shall pay the Participant’s Deferred Benefit Account in the form of (i) a lump sum or, (ii) an annual payment
of a fixed amount which shall amortize the Deferred Benefit Account balance in equal installments of principal and interest over a period of not more than fifteen (15) years as designated by the Participant on his or her Designation of Form for
Payment. For purposes of determining the amount of the annual payment, the rate of interest shall be the average of the Declared Rate credited to the Participant’s Deferred Benefit Account for the three (3) years preceding the initial payment
(or such lesser number of years in which the Participant participated in the Plan). 

  

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

  
 Section 5.3 Commencement of Payments. 
  

	 	(a)	Payments due under Section 5.1 shall commence not later than ninety (90) days following the date the Participant terminates service and continue in accordance with the
Participant’s election under Section 5.2. 

  

	 	(b)	A Participant may elect on his or her Designation of Form of Payment to defer the commencement of benefit payments otherwise payable at the time specified in Section 5.3(a) to a
later date but in any event not beyond the first business day of the January occurring after the year in which the Participant attains age 70. Such election must be made prior to a Participant’s termination of employment in accordance with
Section 5.2(a) and (b). 

  

 4 

	 	(c)	All installment payments made pursuant to this Section 5.3 shall be payable annually beginning with a single payment on the date specified in Section 5.3(a) and continuing each
anniversary of such date until fully paid in accordance with the Participant’s election. 

  
 Article VI 
 Beneficiary Designation 
  
 Section 6.1 Beneficiary Designation. 
  
 Each Participant shall have the right, at any time, to designate any person
or persons as his Beneficiary or Beneficiaries (both primary as well as contingent) to whom payment under this Plan shall be paid in the event of his death prior to complete distribution to the Participant of the benefits due him under the Plan. Any
Participant Beneficiary designation shall be made in a written instrument filed with the Board and shall be effective only when received in writing by the Board. 
  
 Section 6.2 Amendments. 
  
 Any Beneficiary designation may be changed by a Participant by the written filing of such change on a form prescribed by the Board. The
filing of a new Beneficiary designation form will cancel all Beneficiary designations previously filed. 
  
 Section 6.3 No Participant Designation. 
  
 If a Participant fails to designate a Beneficiary as provided above, or if all designated Beneficiaries predecease the Participant, then Participant’s designated Beneficiary shall be deemed to be the person or
persons surviving him in the first of the following classes in which there is a survivor, share and share alike: 
  

	 	(a)	The surviving spouse; 

  

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

  

	 	(c)	The Participant’s estate. 

  
 Section 6.4 Effect of Payment. 
  
 The payment to the deemed Beneficiary shall completely discharge Bank’s obligations under this Plan. 
  

 5 

 Article VII 
 Administration and Claim 
  
 Section 7.1
Administration. 
  
 The administration of the Plan,
the exclusive power to interpret it, and the responsibility for carrying out its provisions are vested in the Board. The Board shall have the authority to resolve any question under the Plan. The determination of the Board as to the interpretation
of the Plan or any disputed question shall be conclusive and final to the extent permitted by applicable law. 
  
 Section 7.2 Claims Procedures. 
  

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

  

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

  

	 	(i)	the specific reason or reasons for the denial; 

  

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

  

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

  

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

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

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

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

 6 

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

  
 Article VIII 
 Amendment and Termination of Plan 
  
 Section 8.1 Amendment. 
  
 The Board may at any time amend the Plan in whole or in part, provided,
however, that no amendment shall be effective to decrease or restrict any Deferred Benefit Account maintained pursuant to any existing award under the Plan. Any change in the formula used to determine the Declared Rate shall be prospective only and
shall not become effective until the first day of the calendar year which follows the adoption of the amendment. 
  
 Section 8.2 Termination of Plan. 
  
 The Board may at any time terminate the Plan if, in its judgment, the tax, accounting, or other effects of the continuance of the Plan, or potential
payments thereunder would not be in the best interests of the Bank, but such termination shall not affect the accrued benefits of Participants as of the date of termination and Participants shall continue to vest in awards made prior to termination
based on their service after the date of termination. Such awards shall otherwise remain subject to the terms of this Plan. 
  
 Article IX 
 Miscellaneous

  
 Section 9.1 Unsecured General Creditor. 
  
 Participants and their Beneficiaries, heirs, successors and assigns shall
have no secured interest or claim in any property or assets of the Bank, nor shall they be beneficiaries of, or have any rights, claims or interests in any life insurance policies, annuity contracts or the proceeds therefrom owned or which may be
acquired by the Bank (“Policies”). Such Policies or other assets of the Bank shall not be held under any trust for the benefit of Participants, their Beneficiaries, heirs, successors or assigns, or held in any way as collateral security
for the fulfilling of the obligations of Bank under this Plan. Any and all of the Bank’s assets and Policies shall be, and remain, the general, unpledged, unrestricted assets of the Bank. The Bank’s obligation under the Plan shall be
merely that of an unfunded and unsecured promise of the Bank to pay money in the future. The Bank shall have no obligation under this Plan with respect to individuals other than that Bank’s employees, directors or consultants. 
  
 Section 9.2 Non-assignability. 
  
 Neither a Participant nor any other person shall have any right to commute,
sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber, transfer, hypothecate or convey in advance of actual receipt the amounts, if any, payable hereunder, or any part thereof, which are, and all rights to which are, expressly
declared to be unassignable and non-transferable. No part of the amounts payable shall, prior to 

  

 7 

 
actual payment, be subject to seizure or sequestration for the payment of any debts, judgments, alimony or separate maintenance owed by a Participant or any
other person, nor be transferable by operation of law in the event of a Participant’s or any other person’s bankruptcy or insolvency. 
  
 Section 9.3 Not a Contract of Employment. 
  
 The terms and conditions of this Plan shall not be deemed to constitute a contract of employment between the Bank and the Participant, and the Participant
(or his Beneficiary) shall have no rights against the Bank except as may otherwise be specifically provided herein. Moreover, nothing in this Plan shall be deemed to give a Participant the right to be retained in the service of the Bank or to
interfere with the right of the Bank to discipline or discharge him at any time. 
  
 Section 9.4 Terms. 
  
 Whenever any words
are used herein in the masculine, they shall be construed as though they were used in the feminine in all cases where they would so apply; and wherever any words are used herein in the singular or in the plural, they shall be construed as though
they were used in the plural or the singular, as the case may be, in all cases where they would so apply. 
  
 Section 9.5 Captions. 
  
 The captions of the articles, sections and paragraphs of this Plan are for convenience only and shall not control or affect the meaning or construction of any of its provisions. 
  
 Section 9.6 Governing Law. 
  
 The provisions of this Plan shall be construed and interpreted according to the laws of the State of New Jersey, unless preempted by federal law.

  
 Section 9.7 Validity. 
  
 In case any provision of this Plan shall be held illegal or invalid for any
reason, said illegality or invalidity shall not affect the remaining parts hereof, but this Plan shall be construed and enforced as if such illegal and invalid provision had never been inserted herein. 
  
 Section 9.8 Notice. 
  
 Any notice or filing required or permitted to be given to the Bank under the
Plan shall be sufficient if in writing and hand delivered, or sent by registered or certified mail, to the Secretary of the Board. Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail as of three (3) days
following the date shown on the postmark or on the receipt for registration or certification. 
  
 Section 9.9 Successors. 
  
 The provisions of this Plan shall bind and inure to the benefit of the Bank and its successors and assigns. The term successors as used herein shall include any corporate or other business entity which shall, whether by merger,
consolidation, purchase or otherwise acquire all or substantially all of the business and assets of the Bank and successors of any such corporation or other business entity. 
  
 Section 9.10 Effective Date. 
  
 The effective date of the Plan is January 1, 2002. 
  

 8 

 Appendix A 
  

			
	 Initial Participants

	  	 Vesting Period*

	 Steven E. Brady
	  	100% after 5 years
	 Janet Bossi
	  	100% after 5 years
	 Francine Crudo
	  	100% after 5 years
	 Kim Davidson
	  	100% after 5 years
	 Paul Esposito
	  	100% after 5 years
	 Robert Garfi
	  	100% after 5 years
	 Theresa Killian
	  	100% after 5 years
	 Donna Mason
	  	100% after 5 years
	 Donald Morgenweck
	  	100% after 5 years
	 Anthony Rizzotte
	  	100% after 5 years
	 Robert Sobkow
	  	100% after 5 years
	 Emily Walker
	  	100% after 5 years
	 James Yensel
	  	100% after 5 years

  

	*	Reflects years of service (1,000 hours per year of service) to vesting commencing on the effective date of the Plan. Vesting applies to the Participant’s Deferred Benefit
Account Balance, as a whole, and does not apply separately to each award. 

  

 Appendix B 
  

Pursuant to Section 5.1 of the Plan, the financial performance objective for the initial Plan Year ending December 31, 2002 is the recording by the Bank of net income
of at least $2 million for such period. 
  
 For purposes of the initial Plan Year
ending December 31, 2002, if the financial performance target identified above is satisfied, each initial Participant identified in Appendix A to the Plan shall be credited with a Deferral Bonus of five (5) percent of his or her base salary
(determined by reference to the rate of base salary for such Participant in effect on December 31, 2002) as of December 31, 2002.

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