Document:

REGISTRATION
RIGHTS AGREEMENT

 

This
Registration Rights Agreement (this “Agreement”) is made as of February 24, 2016 by and among BONE BIOLOGICS
CORPORATION, a Delaware corporation (the “Company”) and HANKEY CAPITAL, LLC, a California limited liability
company (the “Stockholder”).

 

RECITALS

 

A.
The Company and Stockholder has entered into that certain Convertible Secured Term Note, dated February 24, 2016 (the “Note”)
and that certain Common Stock Purchase Warrant, dated February 24, 2016 (the “Warrant”).

 

B.
Under the terms of the Note, the Stockholder has the option to convert all or a portion of the outstanding principal under the
Note into shares of $0.001 par value common stock of the Company (the “Common Stock”) (each such share of Common
Stock, a “Conversion Share”). Additionally, the Company is required to issue certain Securities Collateral
as defined in the Note.

 

C.
Under the terms of the Warrant, the Stockholder has the option at any time on or before the expiration date of the Warrant, exercise
the Warrant and purchase Common Stock of Company (each a “Warrant Share” and together with the Conversion Shares
and the Securities Collateral, the “Shares”).

 

D.
In order to induce the Stockholder to enter into the Note and Warrant, the Company has agreed to provide the registration rights
for the Shares as set forth in this Agreement.

 

AGREEMENTS

 

In
consideration of the premises and the mutual covenants herein contained and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

1.
Definitions. In addition to terms defined elsewhere herein, as used in this Agreement, the terms:

 

“Affiliate”
of any particular person or entity means any other person or entity controlling, controlled by or under common control with such
particular person or entity and, for any person that is a partnership, will also include any general or limited partner of such
partnership.

 

“Business
Day” means any day other than Saturday, Sunday, or a day on which commercial banks in California or New York are obligated
by any legal requirement to close.

 

“Commission”
means the Securities and Exchange Commission.

 

    	 		 

    	 		 

    

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“Initial
Public Offering” means the Company’s first underwritten Public Offering.

 

“Public
Offering” means any offering by the Company of its equity securities to the public pursuant to an effective registration
statement under the Securities Act or any comparable statement under any comparable federal statute then in effect.

 

“Registrable
Shares” means at any time (i) any Shares beneficially held, directly or indirectly, by Stockholder; and (ii) any shares
of Common Stock then issuable directly or indirectly upon the conversion or exercise of other securities or which were issued
as a dividend or other distribution with respect to or in replacement of such Shares referred to in (i); provided, however, that
Registrable Shares shall not include any shares which have been sold pursuant to an effective registration statement under the
Securities Act or which have been sold to the public or maybe sold pursuant to Rule 144 under the Securities Act or any other
available exemption to the Securities Act. For purposes of this Agreement, a person will be deemed to be a holder of Registrable
Shares whenever such person has the then existing right to acquire such Registrable Shares (by conversion or otherwise), whether
or not such acquisition actually has been effected (it being understood, however, that any Registrable Shares which are not shares
of Common Stock shall be converted into or exercised for shares of Common Stock immediately prior to the filing of any registration
pursuant to which such Common Stock is to be registered).

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

2.
Demand Registration.

 

2.1
Requests for Registration. Subject to the terms of this Agreement, Stockholder may, at any time, request registration under
the Securities Act of all or part of their Registrable Shares on Form S-1 or any similar long-form registration (“Long-Form
Registration”) or, if available, on Form S-2 or S-3 or any similar short-form registration (“Short-Form Registration”)
(either of such registrations, a “Demand Registration”). Within thirty (30) days after receipt of any request
pursuant to this Section 2.1, subject to Section 2.2 below, the Company shall give written notice of the Demand Registration to
all other holders of Registrable Shares and will include in such registration all Registrable Shares with respect to which the
Company has received written requests for inclusion within twenty-five (25) days after delivery of the Company’s notice.
Stockholder will be entitled to request three (3) Long-Form Registrations or Short-Form Registrations, in which the Company will
pay, in each case, all Registration Expenses (as defined in Section 6 below). A registration will not constitute one of the permitted
Demand Registrations until it has become effective and the holders of the Registrable Shares, as applicable, have been able to
register and sell at least fifty percent (50%) of its Registrable Shares, respectively, requested to be included in such registration.
The Company shall be entitled to include in any Demand Registration shares to be sold by the Company for its own account, provided
that in the event that the number of shares included by the Company exceeds fifty percent (50%) of the shares registered in such
registration, such registration will not count as a Demand Registration hereunder.

 

    	 	2	 

    	 		 

    

 

2.2
Priority. The Company will include in any Demand Registration any Registrable Shares, or any other securities; provided,
however, if the Demand Registration is an underwritten offering and the managing underwriter(s) advise the Company in writing
that in their opinion the number of securities requested to be included exceeds the number of securities which can reasonably
be sold in such offering, the Company will include in such registration, first, the Registrable Shares requested to be
included in such Demand Registration pro rata among the holders of such Registrable Shares on the basis of the number
of shares which such holders requested to be included in such registration, and second, the other securities to be included
in such Demand Registration pro rata among the holders of such shares on the basis of the number of shares which
such holders requested to be included in such registration.

 

2.3
Selection of Underwriters. In connection with any Demand Registration in which Stockholder elected to include Registrable
Shares, the Company shall have the right to select the managing underwriters.

 

3.1
Right to Piggyback. Whenever the Company proposes to register any of its securities under the Securities Act (other than
pursuant to a Demand Registration hereunder) and the registration form to be used may be used for the registration of any Registrable
Shares (a “Piggyback Registration”), the Company will give prompt written notice to all holders of the Registrable
Shares of its intention to effect such a registration and will include in such registration all Registrable Shares (in accordance
with the priorities set forth in Sections 3.2 and 3.3 below) with respect to which the Company has received written requests
for inclusion within fifteen (15) days after the delivery of the Company’s notice.

 

3.2
Priority on Primary Registrations. If a Piggyback Registration is an underwritten primary registration on behalf of the
Company and the managing underwriters advise the Company in writing that in their opinion the number of securities requested to
be included in such registration exceeds the number which can reasonably be sold in such offering, the Company will include in
such registration first, the securities that the Company proposes to sell, second, the Registrable Shares requested
to be included in such registration, pro rata among the holders of such Registrable Shares on the basis of the number
of shares which such holders requested to be included in such registration, and third, other securities requested to be
included in such registration.

 

3.3
Priority on Secondary Registrations. If a Piggyback Registration is an underwritten secondary registration on behalf of
holders of the Company’s securities other than a Demand Registration and the managing underwriters advise the Company in
writing that in their opinion the number of securities requested to be included in such registration exceeds the number which
can reasonably be sold in such offering, the Company will include in such registration first, the securities requested
to be included therein by the holders requesting such registration, second, the Registrable Shares requested to be included
in such registration, pro rata among the holders of such securities on the basis of the number of shares which by
such holders requested to be included in such registration, and, third, other securities requested to be included in such
registration.

 

    	 	3	 

    	 		 

    

 

3.4
Selection of Underwriters. In connection with any Piggyback Registration in which Stockholder elected to include Registrable
Shares, the Company shall have the right to select the managing underwriters.

 

4.
Holdback Agreements.

 

4.1
Holders’ Agreements. Each holder of Registrable Shares agrees not to effect any public sale or distribution of equity
securities of the Company, or any securities convertible into or exchangeable or exercisable for such securities, during the six
(6) months following, the effective date of this Agreement.

 

5.
Registration Procedures. Whenever the holders of Registrable Shares have requested that any Registrable Shares be registered
pursuant to this Agreement, the Company will use its commercially reasonable best efforts to effect the registration of such Registrable
Shares in accordance with the terms of this Agreement.

 

(a)
prepare and file with the Commission a registration statement with respect to such Registrable Shares and use its best efforts
to cause such registration statement to become effective (provided that before filing a registration statement or prospectus,
or any amendments or supplements thereto, the Company will furnish copies of all such documents proposed to be filed to the counsel
or counsels for the sellers of the Registrable Shares covered by such registration statement);

 

(b)
prepare and file with the Commission such amendments and supplements to such registration statement and the prospectus(es) used
in connection therewith as may be necessary to keep such registration statement effective for a period of not less than twelve
months or until all Registrable Securities registered pursuant to such registration statement have been sold.

 

(c)
notify each seller of such Registrable Shares, at any time when a prospectus relating thereto is required to be delivered under
the Securities Act, of the happening of any event as a result of which the prospectus included in such registration statement
contains an untrue statement of a material fact or omits any fact necessary to make the statements therein not misleading and,
at the request of any such seller, the Company will use commercially reasonable efforts to prepare a supplement or amendment to
such prospectus so that, as thereafter delivered to the sellers of such Registrable Shares, such prospectus will not contain any
untrue statement of a material fact or omit to state any fact necessary to make the statements therein not misleading.

 

(d)
use commercially reasonable efforts to cause all such Registrable Shares to be listed on each securities exchange or national
quotation system on which similar securities issued by the Company are then listed or quoted;

 

(e)
enter into an underwriting agreement in customary form if requested by the holders of a majority of the Registrable Shares being
sold or the underwriters, if any, reasonably request in order to facilitate the disposition of such Registrable Shares;

 

    	 	4	 

    	 		 

    

 

(f)
advise each stockholder of such Registrable Shares, promptly after it shall receive notice or obtain knowledge thereof, of the
issuance of any stop order by the Commission suspending the effectiveness of such registration statement or preventing the use
of any related prospectus or suspending the qualification of any Common Stock included in such registration statement for sale
in any jurisdiction or the initiation or threatening of any proceeding for such purpose and promptly use all reasonable efforts
to prevent the issuance of any stop order or to obtain its withdrawal if such stop order should be issued;

 

(g)
at least forty eight (48) hours prior to the filing of any registration statement or prospectus, or any amendment or supplement
to such registration statement or prospectus, furnish a copy thereof to each seller of such Registrable Shares; and

 

(h)
at the request of any seller of such Registrable Shares in connection with an underwritten offering, furnish on the date or dates
provided for in the underwriting agreement: (i) an opinion of counsel, addressed to the underwriters and the sellers of Registrable
Shares, covering such matters as such underwriters and sellers may reasonably request, including such matters as are customarily
furnished in connection with an underwritten offering; (ii) a letter or letters from the independent certified public accountants
of the Company addressed to the underwriters and the sellers of Registrable Shares, covering such matters as such underwriters
and sellers may reasonably request, in which letter(s) such accountants shall state, without limiting the generality of the foregoing,
that they are independent certified public accountants within the meaning of the Securities Act and that in their opinion the
financial statements and other financial data of the Company included in the registration statement, the prospectus(es), or any
amendment or supplement thereto, comply in all material respects with the applicable accounting requirements of the Securities
Act; and (iii) officers or employees for participation in the “road shows” for such underwritten offering provided
that the Stockholder shall be required to pay the costs of such items.

 

6.
Registration Expenses.

 

6.1
Company’s Expenses. All expenses incident to the Company’s performance of or compliance with this Agreement,
including without limitation all registration and filing fees, fees and expenses of compliance with securities laws, printing
expenses, messenger and delivery expenses, and fees and disbursements of counsel for the Company and all independent certified
public accountants (including all special audit and financial statement costs), and other persons retained by the Company (all
such expenses being herein called “Registration Expenses”), will be borne by the Company.

 

6.2
Holder’s Expenses. Notwithstanding anything to the contrary contained herein, each holder of Registrable Shares will
pay all discounts and commissions attributable to their respective shares and all attorney fees and disbursements for counsel
they retain in connection with the registration of Registrable Shares, as the case may be.

 

    	 	5	 

    	 		 

    

 

7.
Indemnification.

 

7.1
By the Company. The Company agrees to indemnify, to the extent permitted by law, each holder of Registrable Shares, its
officers, directors and trustees and each person who controls such holder (within the meaning of the Securities Act) against all
losses, claims, damages, liabilities and expenses (including without limitation, attorney’s fees) caused by or relating
to any action or proceeding arising out of or based upon any untrue or alleged untrue statement of material fact contained in
any registration statement, prospectus or preliminary prospectus, or any amendment thereof or supplement thereto, or any omission
or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading,
except such indemnification shall not be available to a holder, its officers and directors or controlling person insofar as the
same are caused by or contained in any information furnished in writing to the Company by such holder expressly for use therein
or by such holder’s failure to deliver a copy of the registration statement or prospectus or any amendments or supplements
thereto. In connection with an underwritten offering, the Company will indemnify such underwriters, their officers and directors
and each person who controls such underwriters (within the meaning of the Securities Act) to the same extent as provided above
with respect to the indemnification of the holders of Registrable Shares. The payments required by this Section 7.1 will be made
periodically during the course of the investigation or defense, as and when bills are received or expenses incurred.

 

7.2
By Each Holder. In connection with any registration statement in which a holder of Registrable Shares is participating,
each such holder will furnish to the Company in writing such information and affidavits as the Company reasonably requests for
use in connection with any such registration statement or prospectus and, to the extent permitted by law, will indemnify the Company,
its directors and officers and each person who controls the Company (within the meaning of the Securities Act) against any losses,
claims, damages, liabilities and expenses resulting from any untrue or alleged untrue statement of material fact contained in
the registration statement, prospectus or preliminary prospectus, or any amendment thereof or supplement thereto, or any omission
or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading,
but only to the extent that such untrue statement or omission is contained in any information or affidavit so furnished in writing
by such holder; provided that the obligation to indemnify will be several, not joint and several, among such holders of Registrable
Shares and the liability of each such holder of Registrable Shares will be limited to and in proportion to the net amount received
by such holder from the sale of Registrable Shares, as the case may be, pursuant to such registration statement.

 

7.3
Procedure. Any person entitled to indemnification hereunder will (a) give prompt written notice to the indemnifying party
of any claim with respect to which it seeks indemnification (failure of any indemnified party to give notice as provided herein
shall not relieve the indemnifying party of its obligations hereunder, except to the extent that the indemnifying party is prejudiced
by the failure to give such notice), and (b) unless in such indemnified party’s reasonable judgment a conflict of interest
between such indemnified and indemnifying parties may exist with respect to such claim, permit such indemnifying party to assume
the defense of such claim with counsel reasonably satisfactory to the indemnified party. After notice from the indemnifying party
to such indemnified party of its election so to assume the defense thereof, the indemnifying party will not be subject to any
liability for any settlement made by the indemnified party without its consent (but such consent will not be unreasonably withheld).
An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim will not be obligated to pay the
fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim,
unless in the reasonable judgment of any indemnified party a conflict of interest may exist between such indemnified party and
any other of such indemnified parties with respect to such claim. No indemnifying party shall, without the consent of the indemnified
party, consent to the entry of any judgment or enter into any settlement which cannot be settled in all respects by the payment
of money (and such money is so paid by the indemnifying party pursuant to the terms of such settlement) and which settlement does
not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from
all liability in respect to such claim or litigation.

 

    	 	6	 

    	 		 

    

 

7.4
Contribution. If the indemnification provided for in this Section 7 from the indemnifying party is unavailable to an indemnified
party hereunder in respect of any losses, claims, damages, liabilities or expenses to which such indemnified party would be otherwise
entitled under Section 7, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the
amount paid or payable by such indemnified party as a result of such losses, claims, damages, liabilities or expenses in such
proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified parties in connection with
the actions which resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations.
The relative fault of such indemnifying party and indemnified parties shall be determined by reference to, among other things,
whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission
to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified parties,
and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The
amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall
be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with any investigation
or proceeding. In no event shall any person be required to contribute an amount greater than the dollar amount of the proceeds
received by such person with respect to the sale of any Registrable Shares.

 

The
parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 7.4 were determined by pro
rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in
the immediately preceding paragraph. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.
The contribution provided for in this Section 7.4 shall remain in full force and effect regardless of any investigation made by
or on behalf of any indemnified party.

 

7.5
Survival. The indemnification provided for under this Agreement will remain in full force and effect regardless of any
investigation made by or on behalf of the indemnified party or any officer, director, trustee or controlling person of such indemnified
party and will survive the transfer of securities. The Company also agrees to make such provisions as are reasonably requested
by any indemnified party for contribution to such party in the event the Company’s indemnification is unavailable for any
reason.

 

    	 	7	 

    	 		 

    

 

8.
Compliance with Rule 144. The Company shall make available to the public and such holders and file with the Commission
such information and reports as will enable the holders to make sales pursuant to Rule 144.

 

9.
Participation in Underwritten Registrations. No person may participate in any registration hereunder which is underwritten
unless such person (a) agrees to sell its securities on the basis provided in any underwriting arrangements approved by such person
or persons entitled hereunder to approve such arrangements, (b) completes and executes all customary questionnaires, powers of
attorney, custody agreements, indemnities, underwriting agreements and other documents reasonably required under the terms of
such underwriting arrangements, (c) provides all customary information reasonably requested by the Company or underwriter in connection
with such registration, including copies of customary documents, instruments and agreements and (d) complies with all applicable
federal and state securities laws in connection with such registration.

 

10.
Miscellaneous.

 

10.1
Successors and Assigns. This Agreement is not assignable by any Stockholder without the express written consent of the
Company. Except as otherwise expressly provided herein, all covenants and agreements contained in this Agreement by or on behalf
of any of the parties hereto will bind and inure to the benefit of the respective successors and assigns of the parties hereto,
whether so expressed or not. In addition, and whether or not any express assignment has been made, the provisions of this Agreement
which are for the benefit of holders of Registrable Shares are also for the benefit of, and enforceable by, any subsequent holders
of such Shares.

 

10.2
Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective
and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable
law, such provision will be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder
of this Agreement.

 

10.3
Descriptive Headings. The descriptive headings of this Agreement are inserted for convenience of reference only and do
not constitute a part of and shall not be utilized in interpreting this Agreement.

 

    	 	8	 

    	 		 

    

 

10.4
Notices. Any notices and other communications hereunder shall be in writing and shall be deemed given and received (i)
on the date of delivery if delivered personally, (ii) on the date of confirmation of receipt (or, the first Business Day following
such receipt if the date is not a Business Day) if delivered by a nationally recognized overnight courier service (providing written
proof of delivery), such as Federal Express, (iii) on the date of confirmation of receipt (or, the first Business Day following
receipt if the date is not a Business Day) if sent via facsimile to the parties hereto at the following address, or at such other
address for a party as shall be specified by like notice, provided that a notice of change in address shall not be deemed to have
been given until received by the addressee:

 

If
to the Company, to:

 

Bone
Biologics Corporation

321
Columbus Ave

Boston,
MA 02116

Attention:
Stephen R. LaNeve

Telephone
No.: (732) 661-2224

 

with
a copy (which shall not constitute notice) to:

 

TroyGould
PC

1801
Century Park East, Suite 1600

Los
Angeles, CA 90067-23672

Attention:
David L. Ficksman

Facsimile
No.: (310) 789-1490

Telephone
No.: (310) 789-1290

 

If
to the Hankey Capital, to:

 

Hankey
Capital, LLC

4751
Wilshire Blvd., Suite 110

Los
Angeles, CA 90010

Attention:
Eugene M. Leydiker

Facsimile
No.: (323) 692-4126

Telephone
No.: (323) 692-4026

 

10.5
Governing Law. All questions concerning the construction, validity and interpretation of this Agreement, and the performance
of the obligations imposed by this Agreement, shall be governed by the laws of the State of Delaware applicable to contracts made
and wholly to be performed in that state.

 

10.6
Final Agreement. This Agreement, together with the Merger and all other agreements entered into by the parties hereto,
constitutes the complete and final agreement of the parties concerning the matters referred to herein, and supersedes all prior
agreements and understandings.

 

10.7
Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed
and delivered shall be deemed an original, and such counterparts together shall constitute one instrument.

 

    	 	9	 

    	 		 

    

 

10.8
No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties hereto
to express their mutual intent, regardless of which party drafted this Agreement.

 

10.9
Amendment. Except as otherwise expressly provided herein, the provisions of this Agreement may be amended or waived at
any time only by the written agreement of the Company and Stockholder. Any waiver, permit, consent or approval of any kind or
character on the part of any such holder of any provisions or conditions of this Agreement must be made in writing and shall be
effective only to the extent specifically set forth in such writing.

 

10.10
Waiver of Jury Trial. Each of the parties hereto hereby irrevocably waives any and all right to trial by jury of any claim
or cause of action in any legal proceeding arising out of or related to this Agreement or the transactions or events contemplated
hereby or any course of conduct, course of dealing, statements (whether verbal or written) or actions of any party hereto. The
parties hereto each agree that any and all such claims and causes of action shall be tried by a court trial without a jury. Each
of the parties hereto further waives any right to seek to consolidate any such legal proceeding in which a jury trial has been
waived with any other legal proceeding in which a jury trial cannot or has not been waived.

 

[The
Rest of this Page Intentionally Left Blank]

 

    	 	10	 

    	 		 

    

 

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

 

	 	BONE
    BIOLOGICS CORPORATION
	 	 	 
	 	By:	/s/
    Stephen R. LaNeve
	 	Name:	Stephen
    R. LaNeve
	 	Title:	Chief
    Executive Officer 
	 	 	 
	 	HANKEY
    CAPITAL, LLC
	 	 	 
	 	By:	/s/
    Don R. Hankey
	 	Name:	Don
    R. Hankey
	 	Its:	Manager

 

    	 	11Exhibit 10.1

 

AMENDED
AND RESTATED

 

EMPLOYMENT AGREEMENT

 

BETWEEN

 

PEOPLES
BANK SB

 

AND

 

NORTHWEST
INDIANA BANCORP

 

AND

 

DAVID A.
BOCHNOWSKI

 

     

     

    

 

table of
contents

 

	 	 	 	Page
	1.	Employment and Term.	1
	 	(a)	Employment.	1
	 	(b)	Term.	1
	2.	Duties.	1
	3.	Salary.	2
	 	(a)	Base Salary.	2
	 	(b)	Salary Increases or Decreases.	2
	 	(c)	Expenses, Automobile and Clubs.	2
	4.	Annual Bonuses.	2
	5.	Equity Incentive Compensation.	2
	6.	Other Benefits.	3
	 	(a)	Insurance Plans.	3
	 	(b)	Vacation.	3
	 	(c)	Other.	3
	7.	Termination.	4
	 	(a)	Death or Disability.	4
	 	(b)	Discharge for Cause.	4
	 	(c)	Termination for Other Reasons.	5
	8.	Definitions.	5
	9.	Obligations of the Bank Upon Termination.	8
	 	(a)	Death.	8
	 	(b)	Discharge for Cause or Resignation Without Good Reason.	8
	 	(c)	Discharge Without Cause or Resignation with Good Reason.	8
	 	(d)	Disability.	9
	 	(e)	Level of Bonus and Welfare Benefits after a Change of Control.	10
	 	(f)	Continuing Obligations After Termination.	10
	 	(g)	Six Month Delay.	10
	10.	Certain Additional Payments by the Bank.	11
	11.	No Set-Off or Mitigation.	13
	12.	Payment of Certain Expenses.	13
	13.	Indemnification and Joint Obligation.	14
	14.	Binding Effect.	14
	15.	Notices.	14
	16.	Tax Withholding.	14
	17.	Arbitration.	15
	18.	No Assignment.	15
	19.	Nonsolicitation.	15
	20.	Execution in Counterparts.	15
	21.	Jurisdiction and Governing Law.	15
	22.	Severability.	15
	23.	Prior Understandings.	16
	24.	Payments upon Income Inclusion under Section 409A of the Code.	16

 

     

     

    

 

amended
and restated

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT is made
and entered into as of February 26, 2016, by and between NorthWest Indiana Bancorp (the “Company”) and Peoples Bank
SB (together, the “Bank” unless otherwise noted) and David A. Bochnowski (the “Executive”), but effective
as of April 28, 2016 (the “Effective Date”).

 

This Agreement amends
and restates the prior Employment Agreement between the Company, the Bank and the Executive dated December 29, 2008 (the “Prior
Agreement”).

 

W I T N E S S E T H THAT:

 

WHEREAS, the Bank acting
through its Board of Directors (“Board”) desires to employ the Executive as its Executive Chairman from and after the
Effective Date, and the Executive desires to be employed in such capacity;

 

NOW, THEREFORE, the
Bank and the Executive, each intending to be legally bound, hereby mutually covenant and agree as follows:

 

1.                 
Employment and Term.

 

(a)               
Employment. The Bank shall employ the Executive as its Executive Chairman, and the Executive shall so serve, for
the term set forth in Paragraph 1(b).

 

(b)              
Term. The initial term of the Executive’s employment under this Agreement shall commence as of the Effective
Date and end sixty (60) calendar months thereafter, subject to earlier termination as provided in Paragraph 7, below. The
term of this Agreement shall be hereinafter referred to as the “Term.”

 

2.                 
Duties. During the period of employment as provided in Paragraph 1(b) hereof, the Executive shall serve as Executive
Chairman of the Bank and have all powers and duties consistent with such position, subject to the reasonable direction of the Board.
In particular, the Executive Chairman shall (1) assist Executive’s successor in connection with his transition into the role
of Chief Executive Officer of the Company and the Bank, (2) assist the Company and the Bank with their strategic goals and budgeting
process, and (3) engage in community and banking activities supporting the mission of the Company and the Bank. The Executive shall
also continue to serve and be nominated to serve during the Term as Chairman of the Board of the Company and the Bank, subject
to the election of the applicable shareholders. The Executive shall devote his best efforts to fulfill faithfully, responsibly
and to the best of his ability his duties hereunder; provided, however, that with the approval of the Board, the Executive may
serve, or continue to serve, on the boards of directors of, and hold any other offices or positions in, companies or organizations,
which, in the Board’s judgment, will not present any material conflict of interest with the Bank or any of its subsidiaries
or affiliates or divisions, or unfavorably affect the performance of the Executive’s duties, or will not violate any applicable
statute or regulation. The Executive shall keep track of his time and expenses spent on the affairs of the Company and shall so
advise the Bank so as to allow for a proper allocation of the Executive’s salary and expenses between the Company and the
Bank.

 

    	 	 1	 

     

    

 

3.                 
Salary.

 

(a)                Base
Salary. For services performed by the Executive for the Bank pursuant to this Agreement during the period of employment
as provided in Paragraph 1(b) hereof, the Bank shall pay the Executive a base salary at the rate of Two Hundred Forty
Thousand Dollars ($240,000.00) per year, payable in substantially equal installments in accordance with the
Bank’s regular payroll practices. The Executive’s base salary (with any increases under paragraph (b),
below) shall not be subject to reduction, except that prior to a Change of Control, the Bank may decrease the
Executive’s base salary if the consolidated operating results of the Company are significantly less favorable than
those achieved for the fiscal year ended December 31, 2015, and the Bank makes similar decreases in the base salaries it pays
to the executive officers of the Bank. Any compensation which may be paid to the Executive under any additional compensation
or incentive plan of the Bank (including those under Paragraphs 4, 5 and 6) or which may be otherwise authorized from
time to time by the Board (or an appropriate committee thereof) shall be in addition to the base salary to which the
Executive shall be entitled under this Agreement.

 

(b)              
Salary Increases or Decreases. During the period of employment as provided in Paragraph 1(b) hereof, the base
salary of the Executive shall be reviewed no less frequently than annually by the Board to determine whether or not the same should
be increased in light of the duties and responsibilities of the Executive and the performance of the Bank or decreased under the
circumstances permitted in Section 3(a). If it is determined that an increase or decrease is merited, such increase or decrease
shall be promptly put into effect and the base salary of the Executive as so increased or decreased shall constitute the base salary
of the Executive for purposes of Paragraph 3(a).

 

(c)               
Expenses, Automobile and Clubs. The Bank shall pay or reimburse the Executive for all reasonable travel and other
expenses incurred by the Executive in the performance of his services under this Agreement. The Bank further agrees to provide
the Executive with the full time use of an automobile of a make and model selected by the Executive, not more than two years old,
commensurate with his position and as approved by the Compensation Committee of the Board of Directors. Subject to the approval
of the Board of Directors of the Bank, the Bank shall reimburse the Executive for all initiation fees and dues associated with
membership in professional, social, civic and service organizations which the Executive joins or has joined and which membership,
in whole or in part, furthers the interests of or promotes the interests of the Bank or assists the Executive in business relationships
on behalf of the Bank.

 

4.                 
Annual Bonuses. For each calendar year during the term of employment, the Executive shall be eligible to receive
in cash an annual performance bonus as may be set by Board.

 

5.                 
Equity Incentive Compensation. During the term of employment hereunder the Executive shall be eligible to participate,
in an appropriate manner relative to other senior executives of the Bank, in any equity-based incentive compensation plan or program
approved by the Board from time to time, including (but not by way of limitation) the Company’s 2015 Stock Option and Incentive
Plan.

 

    	 	 2	 

     

    

 

6.                 
Other Benefits.

 

(a)               
Insurance Plans. The Bank agrees to continue funding all premiums as they become due pursuant to the following insurance
policies, and any other insurance policies that may in the future be purchased, under which the Executive is an insured until the
end of the Term.

 

	Company/Policy No.	Type	Benefit Amount
	 	 	 
	Lincoln Financial Group

Group Policy No. 000010201792 00000	Group Life and AD&D	$250,000
	Principal Financial Group

Group Policy No. N2437-9	Group Life and AD&D	$214,000
	Mass. Mutual Life Insurance.

New York Life Insurance and American General

Policy Nos. 0064748/56608619/CM0005294L	Endorsement Split Dollar Plan	$200,000
	Symetra Universal Life Insurance

Policy No. 0100432728	Individual Life Insurance	$500,000
	Jackson National Life Insurance Co.

Policy No. 84040058	Universal Life Insurance	$631,680*
	New York Life

Policy No. 56612175	Endorsement Split Dollar Plan	$100,000
	*Death Benefit Value as of Feb. 8, 2016

 

Notwithstanding the above, in the event
of a Change in Control (as defined in paragraph 8(c)) of the Company or the Bank, the Bank agrees to pay the Executive the amount
of all such future premiums on the above policies as shall be reasonably expected to become due, plus any amount as may be necessary
under paragraph 10, prior to the end of the Term. In the event such payment is made, the Bank shall be relieved of its obligation
to continue funding premiums as they become due.

 

(b)              
Vacation. Notwithstanding anything herein to the contrary, the Executive shall be entitled to vacation and time off
subject to Bank policies that may be in effect from time to time with respect to senior executives employed by the Bank.

 

(c)               
Other. The Executive shall be entitled to participate in all of the various retirement, welfare, fringe benefit and
executive perquisite plans, programs and arrangements of the Bank as they may exist from time to time. Notwithstanding the limitations
of any health benefit plan maintained by the Bank, the Bank agrees to pay the costs of any necessary physical examinations and
the costs of all diagnostic testing and treatment incurred by the Executive on his own behalf.

 

    	 	 3	 

     

    

 

7.                 
Termination. Unless this Agreement is earlier terminated in accordance with the following provisions of this Paragraph 7,
the Bank shall continue to employ the Executive and the Executive shall remain employed by the Bank during the entire Term of this
Agreement as set forth in Paragraph 1(b). Paragraph 9 hereof sets forth certain obligations of the Bank in the event
that the Executive’s employment hereunder is terminated. Certain capitalized terms used in this Agreement are defined in
Paragraph 8, below.

 

(a)               
Death or Disability. Except to the extent otherwise provided in Paragraph 9, this Agreement shall terminate
immediately (a Date of Termination) in the event of the Executive’s death or in the event that the Executive becomes disabled.
The Executive will be deemed to be disabled if he (i) is unable to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a
continuous period of not less than twelve (12) months; or (ii) is, by reason of any medically determinable physical or mental impairment
which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months,
receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering
employees of the Bank. If any question arises as to whether the Executive is disabled, upon reasonable request therefor by the
Board, the Executive shall submit to reasonable medical examination for the purpose of determining the existence, nature and extent
of any such disability. In accordance with Paragraph 15, the Bank shall promptly give the Executive written notice of any
such determination of the Executive’s disability and of any decision of the Bank to terminate the Executive’s employment
by reason thereof. In the event of disability, until the Date of Termination, the base salary payable to the Executive under Paragraph 3(a)
hereof shall be reduced dollar-for-dollar by the amount of disability benefits paid to the Executive in accordance with any disability
policy or program of the Bank.

 

(b)              
Discharge for Cause. In accordance with the procedures hereinafter set forth, the Board may discharge the Executive
from his employment hereunder for Cause. Except to the extent otherwise provided in Paragraph 9, this Agreement shall terminate
immediately as of the Date of Termination in the event the Executive is discharged for Cause. Any discharge of the Executive for
Cause shall be communicated by a Notice of Termination to the Executive given in accordance with Paragraph 15 of this Agreement.
For purposes of this Agreement, a “Notice of Termination” means a written notice which (i) indicates the specific
termination provision in this Agreement relied upon, (ii) sets forth in reasonable detail the facts and circumstances claimed
to provide a basis for termination of the Executive’s employment under the provision so indicated and (iii) specifies
the termination date, which may be as early as the date of the giving of such notice. In the case of a discharge of the Executive
for Cause, the Notice of Termination shall include a copy of a resolution duly adopted by the Board at a meeting called and held
for such purpose (after reasonable notice to the Executive and reasonable opportunity for the Executive, together with the Executive’s
counsel, to be heard before the Board prior to such vote), finding that, in the reasonable and good faith opinion of the Board,
the Executive was guilty of conduct constituting Cause. No purported termination of the Executive’s employment for Cause
shall be effective without a Notice of Termination.

 

    	 	 4	 

     

    

 

(c)               
Termination for Other Reasons. The Bank may discharge the Executive for reason other than Cause by giving written
notice to the Executive in accordance with Paragraph 15 at least thirty (30) days prior to the Date of Termination. The
Executive may resign from his employment, without liability to the Bank, by giving written notice to the Bank in accordance with
Paragraph 15 at least thirty (30) days prior to the Date of Termination. Except to the extent otherwise provided in Paragraph 9,
this Agreement shall terminate immediately as of the Date of Termination in the event the Executive is discharged for reasons other
than Cause or resigns.

 

8.                 
Definitions. For purposes of this Agreement, the following capitalized terms shall have the meanings set forth below:

 

(a)               
“Accrued Obligations” shall mean, as of the Date of Termination, the sum of (A) the Executive’s base
salary under Paragraph 3(a) through the Date of Termination to the extent not theretofore paid, (B) the amount of any
bonus, incentive compensation, deferred compensation and other cash compensation accrued by the Executive as of the Date of Termination
to the extent not theretofore paid and (C) any unused vacation, expense reimbursements (regardless of whether a claim for
such has yet been filed) and other cash entitlements due the Executive as of the Date of Termination. For the purpose of this Paragraph 8(a),
dollar amounts shall be deemed to accrue ratably over the period during which they are earned, but no discretionary compensation
shall be deemed earned or accrued unless it has been specifically approved by the Board in accordance with the applicable plan,
program or policy.

 

(b)              
“Cause” shall mean: (A) the Executive’s commission of an act materially and demonstrably detrimental
to the goodwill of the Bank or any of its subsidiaries, which act constitutes gross negligence or willful misconduct by the Executive
in the performance of his material duties to the Bank or (B) the Executive’s conviction of a felony involving moral
turpitude, but specifically excluding any conviction based entirely on vicarious liability. No act or failure to act will be considered
“willful” unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that
his action or omission was in the best interests of the Bank. In addition, no act or omission will constitute Cause unless the
Bank has given detailed written notice thereof to the Executive and, where remedial action is feasible, he then fails to remedy
the act or omission within a reasonable time after receiving such notice.

 

(c)               
“Change of Control” shall mean any of the following:

 

(i)                
a change in the ownership of the Bank or the Company, which shall occur on the date that any one person, or more than one
person acting as a group, acquires ownership of stock of the Bank or the Company that, together with stock held by such person
or group, constitutes more than fifty percent (50%) of the total fair market value or total voting power of the stock of the Bank
or the Company. Such acquisition may occur as a result of a merger of the Company or the Bank into another entity which pays consideration
for the shares of capital stock of the merging Company or Bank. However, if any one person, or more than one person acting as a
group, is considered to own more than fifty percent (50%) of the total fair market value or total voting power of the stock of
the Bank or the Company, the acquisition of additional stock by the same person or persons is not considered to cause a change
in the ownership of the Bank or the Company (or to cause a change in the effective control of the Bank or the Company within the
meaning of subsection (ii)). An increase in the percentage of stock owned by any one person, or persons acting as a group, as a
result of a transaction in which the Bank or the Company acquires its stock in exchange for property will be treated as an acquisition
of stock for purposes of this subsection. This subsection applies only when there is a transfer of stock of the Bank or the Company
(or issuance of stock of the Bank or the Company) and stock in the Bank or the Company remains outstanding after the transaction.

 

    	 	 5	 

     

    

 

(ii)              
a change in the effective control of the Bank or the Company, which shall occur only on either of the following dates:

 

1)                 
the date any one person, or more than one person acting as a group acquires (or has acquired during the 12 month period
ending on the date of the most recent acquisition by such person or persons) ownership of stock of the Bank or the Company possessing
thirty percent (30%) or more of the total voting power of the stock of the Bank or the Company.

 

2)                 
the date a majority of members of the Company’s board of directors is replaced during any 12 month period by directors
whose appointment or election is not endorsed by a majority of the members of the Company’s board of directors before the
date of the appointment or election; provided, however, that this provision shall not apply if another corporation is a majority
shareholder of the Company.

 

If any one person, or more than
one person acting as a group, is considered to effectively control the Bank or the Company, the acquisition of additional control
of the Bank or the Company by the same person or persons is not considered to cause a change in the effective control of the Bank
or the Company (or to cause a change in the ownership of the Bank or the Company within the meaning of subsection (i) of this section).

 

(iii)            
a change in the ownership of a substantial portion of the Bank’s assets, which shall occur on the date that any one
person, or more than one person acting as a group, acquires (or has acquired during the 12 month period ending on the date of the
most recent acquisition by such person or persons) assets from the Bank that have a total gross fair market value equal to or more
than forty percent (40%) of the total gross fair market value of all of the assets of the Bank immediately before such acquisition
or acquisitions. For this purpose, gross fair market value means the value of the assets of the Bank, or the value of the assets
being disposed of, determined without regard to any liabilities associated with such assets. No change in control occurs under
this subsection (iii) when there is a transfer to an entity that is controlled by the shareholders of the Bank immediately after
the transfer. A transfer of assets by the Bank is not treated as a change in the ownership of such assets if the assets are transferred
to –

 

1)                 
a shareholder of the Bank (immediately before the asset transfer) in exchange for or with respect to its stock;

 

2)                 
an entity, 50 percent or more of the total value or voting power of which is owned, directly or indirectly, by the Bank.

 

3)                 
a person, or more than one person acting as a group, that owns, directly or indirectly, 50 percent or more of the total
value or voting power of all the outstanding stock of the Bank; or

 

4)                 
an entity, at least 50 percent of the total value or voting power of which is owned, directly or indirectly, by a person
described in paragraph (iii).

 

For purposes of this subsection
(iii) and except as otherwise provided in paragraph 1) above, a person’s status is determined immediately after the transfer
of the assets.

 

(iv)            
For purposes of this section, persons will not be considered to be acting as a group solely because they purchase or own
stock of the same corporation at the same time, or as a result of the same public offering. Persons will be considered to be acting
as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar
business transaction with the Bank or the Company; provided, however, that they will not be considered to be acting as a group
if they are owners of an entity that merges into the Bank or the Company where the Bank or the Company is the surviving corporation.

 

(d)              
“Date of Termination” shall mean (A) in the event of a discharge of the Executive by the Board for Cause,
the date specified in such Notice of Termination, (B) in the event of a discharge of the Executive without Cause or a resignation
by the Executive, the date specified in the written notice to the Executive (in the case of discharge) or the Bank (in the case
of resignation), which date shall be no less than thirty (30) days from the date of such written notice, (C) in
the event of the Executive’s death, the date of the Executive’s death, (D) in the event of termination of the
Executive’s employment by reason of disability pursuant to Paragraph 7(a), the date the Executive receives written notice
of such termination, and (E) upon termination of this Agreement due to a Change in Control, the date of such Change in Control.

 

(e)               
“Good Reason” shall mean any of the following: (A) the failure to re-elect the Executive as Executive Chairman
and as Chairman of the Board of Directors of the Company or the Bank with full voting rights, (B) assignment of duties inconsistent
with the Executive’s position, authority, duties or responsibilities, or any other action by the Bank which results in a
substantial diminution of such position, authority, duties or responsibilities, or (C) any substantial failure by the Bank
to comply with any of the provisions of this Agreement; provided, however, that actions taken by the Board of Directors of the
Bank under subparagraphs (A) and (B) by reason of the Executive’s inability to perform the responsibilities contemplated
by those sections because of a physical or mental injury or disease shall not be deemed “Good Reason.” In addition,
resignation by the Executive for any reason during the one (1)-year period immediately after a Change of Control shall be
deemed to be a resignation for Good Reason.

 

    	 	 6	 

     

    

 

(f)               
The Executive shall have a “Termination of Employment” if there is a termination of services provided by the
Executive to the Bank, whether voluntarily or involuntarily, other than by reason of death or disability, as determined by the
Board in accordance with Treas. Reg. §1.409A-1(h). In determining whether an Executive has experienced a Termination of Employment,
the following provisions shall apply:

 

1)                 
To the extent the Executive provides services to the Bank or Company (the “Employer”) solely as an employee,
except as otherwise provided in part (3) of this subsection, a Termination of Employment shall occur when the Executive has experienced
a termination of employment with the Employer. The Executive shall be considered to have experienced a termination of employment
when the facts and circumstances indicate that the Executive and the Employer reasonably anticipate that either (i) no further
services will be performed for the Employer after a certain date, or (ii) that the level of bona fide services the Executive will
perform for the Employer after such date (whether as an employee or as an independent contractor) will permanently decrease to
less than 50% of the average level of bona fide services performed by the Executive (whether as an employee or an independent contractor)
over the immediately preceding 36-month period (or the full period of services to the Employer if the Executive has been providing
services to the Employer less than 36 months). If the Executive provides services for the Employer as both an employee and as a
director, to the extent permitted by Treas. Reg. §1.409A-1(h)(5) the services provided by the Executive as a director shall
not be taken into account in determining whether the Executive has experienced a Termination of Employment as an employee.

 

2)                 
For the purpose of determining whether the Executive has experienced a Termination of Employment, the term “Employer”
shall mean:

 

(I)               
The entity for which the Executive performs services and with respect to which the legally binding right to compensation
deferred or contributed under this Agreement arises; and

 

(II)            
All other entities with which the entity described above would be aggregated and treated as a single employer under Code
Section 414(b) (controlled group of corporations) and Code Section 414(c) (a group of trades or businesses, whether or not incorporated,
under common control), as applicable. In order to identify the group of entities described in the preceding sentence, an ownership
threshold of at least 50% shall be substituted for the 80% minimum ownership threshold that appears in, and otherwise must be used
when applying, the applicable provisions of (A) Code Section 1563 for determining a controlled group of corporations under Code
Section 414(b), and (B) Treas. Reg. §1.414(c)-2 for determining the trades or businesses that are under common control under
Code Section 414(c).

 

    	 	 7	 

     

    

 

Any reference in this Agreement to a “termination
of employment,” severance from employment, separation from employment, resignation or discharge otherwise entitling the Executive
to payment hereunder shall be deemed to mean a Termination of Employment.

 

9.                 
Obligations of the Bank Upon Termination. The following provisions describe the obligations of the Bank to the Executive
under this Agreement upon termination of his employment. However, except as explicitly provided in this Agreement, nothing in this
Agreement shall limit or otherwise adversely affect any rights which the Executive may have under applicable law, under any other
agreement with the Bank or any of its subsidiaries, or under any compensation or benefit plan, program, policy or practice of the
Bank or any of its subsidiaries:

 

(a)               
Death. In the event of the death of the Executive, the Bank shall pay to his heirs or estate all Accrued Obligations
in a lump sum in cash within thirty (30) days after the Date of Termination; provided, however, that any portion of the Accrued
Obligations which consists of bonus, deferred compensation or incentive compensation, shall be determined and paid in accordance
with the terms of the relevant plan as applicable to the Executive. In addition, within thirty (30) days of the date of death of
the Executive, the Bank shall pay to his heirs or estate in a lump sum in cash an amount equal to the sum of the Executive’s
then-current annual base salary and the amount of the most recent annual bonus of the Executive times the remaining years and fractions
thereof in the Term.

 

(b)              
Discharge for Cause or Resignation Without Good Reason. Upon the Executive’s Termination of Employment by reason
of his discharge by the Bank for Cause, or upon the Executive’s Termination of Employment by reason of his resignation other
than for Good Reason, the Bank shall pay to the Executive all Accrued Obligations in a lump sum in cash within thirty (30)
days after the Date of Termination; provided, however, that any portion of the Accrued Obligations which consists of bonus, deferred
compensation or incentive compensation, shall be determined and paid in accordance with the terms of the relevant plan as applicable
to the Executive.

 

(c)               
Discharge Without Cause or Resignation with Good Reason. In the event of the Executive’s Termination of Employment
by reason of the discharge of the Executive by the Bank without Cause, or by reason of the resignation of the Executive for Good
Reason, then the Bank shall pay to Executive, or his heirs or estate in the event of the Executive’s death, in addition to
the compensation and benefits described in paragraph (a), the following benefits:

 

(i)                
A cash bonus for the year of termination equal to the most recent annual bonus received by the Executive,

 

    	 	 8	 

     

    

 

(ii)              
Payment in a lump sum of an amount equal to three (3) times the Executive’s then-current base salary as in effect
prior to the termination,

 

(iii)            
Payment in a lump sum of an amount equal to three (3) times the most recent annual bonus received by the Executive,

 

(iv)            
Continuation, for a period of three (3) years after the Date of Termination, of welfare benefits and senior executive
perquisites at least equal to those which would have been provided if the Executive’s employment had continued for that time,
and

 

(v)              
A payment equal to that described in Paragraph 6(a) as necessary to fund the future premiums on such insurance policies
as shall be reasonably expected to become due prior to the end of the Term.

 

The amounts payable under paragraphs (c)(i),
(ii), (iii) and (v) shall be paid no later than thirty (30) days after the Date of Termination. To the extent any benefits or perquisites
provided under paragraph (c)(iv) provide for reimbursements of expenses incurred by the Executive, or in-kind benefits, the following
conditions must be satisfied:

 

(1)              
The benefit or perquisite must provide an objectively determinable nondiscretionary definition of the expenses eligible
for reimbursement or of the in-kind benefits to be provided;

 

(2)              
The benefit or perquisite must provide for the reimbursement of expenses incurred or for the provision of the in-kind benefits
during an objectively and specifically prescribed period;

 

(3)              
The benefit or perquisite must provide that the amount of expenses eligible for reimbursement, or in-kind benefits provided,
during the Executive’s taxable year may not affect the expenses eligible for reimbursement, or in-kind benefits to be provided,
in any other taxable year;

 

(4)              
The reimbursement of an eligible expense must be made on or before the last day of the Executive’s taxable year following
the taxable year in which the expense was incurred; and

 

(5)              
The right to reimbursement or in-kind benefit must not be subject to liquidation or exchange for another benefit.

 

(d)              
Disability. In the event of the disability of the Executive, then the Bank shall pay to the Executive all Accrued
Obligations in a lump sum in cash within thirty (30) days after the Date of Termination; provided, however, that any portion of
the Accrued Obligations which consists of bonus, deferred compensation, or incentive compensation, shall be determined and paid
in accordance with the terms of the relevant plan as applicable to the Executive. In addition, the Bank shall pay to the Executive
the following benefits:

 

    	 	 9	 

     

    

 

(i)                
A cash bonus for the year of termination equal to the most recent annual bonus received by the Executive, payable within
thirty (30) days after the Date of Termination;

 

(ii)              
Cash compensation during each year or fraction thereof between the Date of Termination and the expiration of the Term equal
to sixty-six percent (66%) of both the then current base salary and the most recent annual bonus received by the Executive, payable
at such time as compensation is payable to employees of the Bank generally; and

 

(iii)            
Continuation of welfare benefits and senior executive perquisites at least equal to those which would have been provided
if the Executive’s employment had continued for that time as the cash compensation in (ii) continues (payable in accordance
with the same rules as apply to those benefits payable under Section 9(c)(iv)).

 

Notwithstanding the foregoing, the payments
due under this section following the Executive’s Date of Termination due to disability shall be offset dollar-for-dollar
by the amount of disability payments paid to the Executive for periods following the Date of Termination in accordance with any
disability policy or program of the Bank.

 

(e)               
Level of Bonus and Welfare Benefits after a Change of Control. If the Executive’s employment terminates for
any reason after a Change of Control, the phrase “most recent annual bonus” as used in paragraphs (a) and (c)(i)
and (iii) shall be replaced by the phrase “most recent annual bonus received by the Executive prior to the Change of Control,”
and the phrase “would have been provided if the Executive’s employment had continued for that time” as used in
paragraph (c)(iv) shall be replaced by the phrase “were provided to the Executive immediately prior to the Change of
Control;” provided, however, that this paragraph (e) shall not apply to (a), (c)(i), (c)(iii) or to (c)(iv) if the benefits
the Executive would receive under (a), (c)(i), (c)(iii) or (c)(iv) would be greater without the application of this paragraph (e).

 

(f)               
Continuing Obligations After Termination. If the Executive’s employment with the Bank terminates for any reason,
the Bank’s obligations and the Executive’s obligations under Paragraphs 9 through 19 shall continue after termination
of the employment relationship.

 

(g)              
Six Month Delay. To the extent the Executive is a “specified employee” (as defined below) as of his Termination
of Employment, payments due to the Executive as a result of his Termination of Employment shall begin no sooner than six months
after the Executive’s Termination of Employment; provided, however, that any payments not made during the six month period
described in this subsection (g) shall be made in a single lump sum as soon as administratively practicable after the expiration
of such six month period. For purposes of this Agreement, the term “specified employee” shall have the meaning set
forth in Treasury Reg. Section 1.409A-1(i) and shall include, without limitation, (1) an officer of the Bank or the Company having
annual compensation greater than $130,000 (as adjusted for inflation under the Code), (2) a five percent owner of the Bank or the
Company, or (3) a one percent owner of the Bank or the Company having annual compensation of more than $150,000. The determination
of whether the Executive is a “specified employee” shall be made by the Bank in good faith applying the applicable
Treasury regulations.

 

    	 	 10	 

     

    

 

10.             
Certain Additional Payments by the Bank. The Bank agrees that:

 

(a)               
Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined that any payment or distribution
by the Bank to or for the benefit of the Executive (whether paid or payable or distributed or distributable pursuant to the terms
of this Agreement or otherwise, but determined without regard to any additional payments required under this Paragraph 10)
(a “Payment”) would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986,
as amended (the “Code”), or if any interest or penalties are incurred by the Executive with respect to such excise
tax (such excise tax, together with any such interest and penalties, being hereinafter collectively referred to as the “Excise
Tax”), then the Executive shall be entitled to receive an additional payment (a “Gross-Up Payment”) in an amount
such that, after payment by the Executive of all taxes (including any interest or penalties imposed with respect to such taxes),
including, without limitation, any income taxes (and any interest and penalties imposed with respect thereto) and Excise Tax imposed
upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payment.

 

(b)              
Subject to the provisions of paragraph (c), below, all determinations required to be made under this Paragraph 10,
including whether and when a Gross-Up Payment is required and the amount of such Gross-Up Payment and the assumptions to be utilized
in arriving at such determination, shall be made by the accounting firm which is then serving as the tax advisor for the Bank (the
“Accounting Firm”), which shall provide detailed supporting calculations both to the Bank and the Executive within
fifteen (15) business days of the receipt of notice from the Executive that there has been a Payment, or such earlier time
as is requested by the Bank. In the event that the Accounting Firm is serving as tax advisor for the individual, entity or group
effecting the Change of Control, the Executive shall appoint a nationally recognized accounting firm to make the determinations
required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and expenses of
the Accounting Firm shall be borne solely by the Bank. Any Gross-Up Payment, as determined pursuant to this Paragraph 10,
shall be paid by the Bank to the Executive within five (5) days of the receipt of the Accounting Firm’s determination.
If the Accounting Firm determines that no Excise Tax is payable by the Executive, it shall furnish the Executive with a written
opinion that failure to report the Excise Tax on the Executive’s applicable federal income tax return would not result in
the imposition of a negligence or similar penalty. Any good faith determination by the Accounting Firm shall be binding upon the
Bank and the Executive. As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial
determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments which will not have been made by the Bank
should have been made (“Underpayment”), consistent with the calculations required to be made hereunder. In the event
that the Bank exhausts its remedies pursuant to paragraph (c), below, and the Executive thereafter is required to make a payment
of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment
shall be promptly paid by the Bank to or for the benefit of the Executive.

 

    	 	 11	 

     

    

 

(c)               
The Executive shall notify the Bank in writing of any claim by the Internal Revenue Service that, if successful, would require
the payment by the Bank of a Gross-Up Payment. Such notification shall be given as soon as practicable but no later than thirty (30)
business days after the Executive is informed in writing of such claim and shall apprise the Bank of the nature of such claim and
the date on which such claim is requested to be paid. The Executive shall not pay such claim prior to the expiration of the thirty
(30)-day period following the date on which Executive gives such notice to the Bank (or such shorter period ending on the date
that any payment of taxes with respect to such claim is due). If the Bank notifies the Executive in writing prior to the expiration
of such period that it desires to contest such claim, the Executive shall:

 

(i)                
Give the Bank any information reasonably requested by the Bank relating to such claim,

 

(ii)              
Take such action in connection with contesting such claim as the Bank shall reasonably request in writing from time to time,
including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by
the Bank,

 

(iii)            
Cooperate with the Bank in good faith in order effectively to contest such claim, and

 

(iv)            
Permit the Bank to participate in any proceedings relating to such claim;

 

provided, however, that the Bank shall
bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest
and shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or income tax (including interest
and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses. Without limiting
the foregoing provisions of this paragraph (c), the Bank shall control all proceedings taken in connection with such contest
and, at its sole option, may pursue or forgo any and all administrative appeals, proceedings, hearings and conferences with the
taxing authority in respect of such claim and may, at its sole option, either direct the Executive to pay the tax claimed and sue
for a refund or contest the claim in any permissible manner; and the Executive agrees to prosecute such contest to a determination
before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Bank shall determine;
provided, however, that if the Bank directs the Executive to pay such claim and sue for a refund, the Bank shall advance the amount
of such payment to the Executive on an interest-free basis and shall indemnify and hold the Executive harmless, on an after-tax
basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance
or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations
relating to payment of taxes for the taxable year of the Executive with respect to which such contested amount is claimed to be
due is limited solely to such contested amount. Furthermore, the Bank’s control of the contest shall be limited to issues
with respect to which a Gross-Up Payment would be payable hereunder and the Executive shall be entitled to settle or contest, as
the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority.

 

    	 	 12	 

     

    

 

(d)              
If, after the receipt by the Executive of an amount advanced by the Bank pursuant to paragraph (c), above, the Executive
receives any refund with respect to such claim, the Executive shall (subject to the Bank’s complying with the requirements
of said paragraph (c)) promptly pay to the Bank the amount of such refund (together with any interest paid or credited thereon,
after taxes applicable thereto). If, after the receipt by the Executive of an amount advanced by the Bank pursuant to said paragraph (c),
a determination is made that the Executive shall not be entitled to any refund with respect to such claim and the Bank does not
notify the Executive in writing of its intent to contest such denial of refund prior to the expiration of thirty (30) days
after such determination, then such advance shall be forgiven and shall not be required to be repaid; and the amount of such advance
shall offset, to the extent thereof, the amount of the Gross-Up Payment required to be paid.

 

(e)               
Notwithstanding anything contained in this Paragraph 10 to the contrary, if the present value of the payments made under
this Agreement, without taking into account the Gross-Up Payment, is no greater than one hundred and five percent (105%) of the
amount payable to the Executive assuming the Executive’s payments under this Agreement were limited to the maximum amount
that could be payable without application of the excise tax imposed by Section 4999 of the Code (the “Section 4999 Limit”),
the Executive’s payments shall be limited to the Section 4999 Limit.

 

(f)               
For purposes of complying with Section 409A of the code, any Gross-Up Payment will be made by the end of the Executive’s
taxable year next following Executive’s taxable year in which the Executive remits the related taxes. In addition, any reimbursement
of expenses incurred due to a tax audit or litigation addressing the existence or amount of a tax liability, whether Federal, state,
local, or foreign, must be made by the end of the Executive’s taxable year following the Executive’s taxable year in
which the taxes that are the subject of the audit or litigation are remitted to the taxing authority, or where as a result of such
audit or litigation no taxes are remitted, the end of the Executive’s taxable year following the Executive’s taxable
year in which the audit is completed or there is a final and nonappealable settlement or other resolution of the litigation.

 

11.             
No Set-Off or Mitigation. The Bank’s obligation to make the payments provided for in this Agreement and otherwise
to perform its obligations hereunder shall not be affected by any set-off, bankers right of set-off, counterclaim, recoupment,
defense or other claim, right or action which the Bank may have against the Executive or others. In no event shall the Executive
be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under
any of the provisions of this Agreement and such amounts shall not be reduced whether or not the Executive obtains other employment.

 

12.             
Payment of Certain Expenses. The Bank agrees to pay promptly as incurred, to the fullest extent permitted by law,
all legal fees and expenses which the Executive may reasonably incur as a result of any contest by the Bank, the Executive or others
of the validity or enforceability of, or liability under, any provision of this Agreement (including as a result of any contest
initiated by the Executive about the amount of any payment due pursuant to this Agreement), plus in each case interest on any delayed
payment at the applicable federal rate provided for in Section 7872(f)(2)(A) of the Code.

 

    	 	 13	 

     

    

 

13.             
Indemnification and Joint Obligation. To the fullest extent permitted by law, the Bank shall indemnify the Executive
(including the advancement of expenses) for any judgments, fines, amounts paid in settlement and reasonable expenses, including
attorneys’ and experts’ fees, incurred by the Executive in connection with the defense of any lawsuit or other claim
to which he is made a party by reason of being an officer, director or employee of the Bank or any of its subsidiaries. The Company
and the Bank are jointly and severally liable to provide the payment of all compensation, payments and/or benefits due to the Executive
or his beneficiaries under this Agreement or any of the plans, programs or arrangements referred to hereby.

 

14.             
Binding Effect. This Agreement shall be binding upon and inure to the benefit of the heirs and representatives of
the Executive and the successors and assigns of the Bank and the Company. The Bank and the Company shall require any successor
(whether direct or indirect, by purchase, merger, reorganization, consolidation, acquisition of property or stock, liquidation,
or otherwise) to all or a substantial portion of its assets, by agreement in form and substance reasonably satisfactory to the
Executive, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Bank and
the Company would be required to perform this Agreement if no such succession had taken place. Regardless of whether such an agreement
is executed, this Agreement shall be binding upon any successor of the Bank and the Company in accordance with the operation of
law, and such successor shall be deemed the “Bank” or the “Company,” as appropriate, for purposes of this
Agreement.

 

15.             
Notices. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed
to have been duly given if delivered by hand or by recognized commercial delivery service or if mailed within the continental United
States by first class certified mail, return receipt requested, postage prepaid, addressed as follows:

 

	
        If to the Board or the Bank, to:

         

        Peoples Bank SB

        9204 Columbia Avenue

        Munster, Indiana 46321

        Attention: Corporate Secretary

         

	
        If to the Executive, to:

         

        David A. Bochnowski

        10203 Cherrywood Lane

        Munster, Indiana 46321

         

 

Such addresses may be changed by written
notice sent to the other party at the last recorded address of that party.

 

16.             
Tax Withholding. The Bank shall provide for the withholding of any taxes required to be withheld by federal, state
or local law with respect to any payment in cash, shares of stock and/or other property made by or on behalf of the Bank to or
for the benefit of the Executive under this Agreement or otherwise. The Bank may, at its option: (a) withhold such taxes from
any cash payments owing from the Bank to the Executive, (b) require the Executive to pay to the Bank in cash such amount as
may be required to satisfy such withholding obligations and/or (c) make other satisfactory arrangements with the Executive
to satisfy such withholding obligations.

 

    	 	 14	 

     

    

 

17.             
Arbitration. Except as to any controversy or claim which the Executive elects, by written notice to the Bank, to
have adjudicated by a court of competent jurisdiction, any controversy or claim arising out of or relating to this Agreement or
the breach hereof shall be settled by arbitration at a mutually agreed site in accordance with the laws of the State of Indiana.
The arbitration shall be conducted in accordance with the rules of the American Arbitration Association. The costs and expenses
of the arbitrator(s) shall be borne by the Bank. The award of the arbitrator(s) shall be binding upon the parties. Judgment upon
the award rendered by the arbitrator(s) may be entered in any court having jurisdiction.

 

18.             
No Assignment. Except as otherwise expressly provided herein, this Agreement is not assignable by any party and no
payment to be made hereunder shall be subject to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or other
charge.

 

19.             
Nonsolicitation. The Executive covenants that upon his Date of Termination, he shall not, for a period of one (1)
year following the Date of Termination directly recruit any person who is an employee of the Bank; solicit, encourage or induce
any such employee to leave the Bank’s employ or solicit, encourage or induce any customer of the Bank to cease doing business
with the Bank.

 

20.             
Execution in Counterparts. This Agreement may be executed by the parties hereto in two (2) or more counterparts,
each of which shall be deemed to be an original, but all such counterparts shall constitute one and the same instrument, and all
signatures need not appear on any one counterpart.

 

21.             
Jurisdiction and Governing Law. This Agreement shall be construed and interpreted in accordance with and governed
by the laws of the State of Indiana, without regard to the conflict of laws provisions of such laws.

 

22.             
Severability. If any provision of this Agreement shall be adjudged by any court of competent jurisdiction to be invalid
or unenforceable for any reason, such judgment shall not affect, impair or invalidate the remainder of this Agreement. Furthermore,
if the scope of any restriction or requirement contained in this Agreement is too broad to permit enforcement of such restriction
or requirement to its full extent, then such restriction or requirement shall be enforced to the maximum extent permitted by law,
and the Executive consents and agrees that any court of competent jurisdiction may so modify such scope in any proceeding brought
to enforce such restriction or requirement. Nothing herein shall be construed as requiring the Bank to make any payment which would
be prohibited under 12 C.F.R. 359. In the event a payment required under the terms of this Agreement cannot lawfully be made because
of the limitations of 12 C.F.R. 359, the obligation to make such payment shall be deferred until such time as the limitations
of 12 C.F.R. 359 shall no longer apply. Upon deferring any payment required under this Agreement due to the limitations
of 12 C.F.R. 359, the Bank shall provide the Executive with a legal opinion of counsel addressing the exact provisions of 12 C.F.R.
359 which pose the barrier to payment.

 

    	 	 15	 

     

    

 

23.             
Prior Understandings. This Agreement embodies the entire understanding of the parties hereto and supersedes all other
oral or written agreements or understandings between them regarding the subject matter hereof. No change, alteration or modification
hereof may be made except in a writing, signed by each of the parties hereto. The headings in this Agreement are for convenience
of reference only and shall not be construed as part of this Agreement or to limit or otherwise affect the meaning hereof.

 

24.             
Payments upon Income Inclusion under Section 409A of the Code. Upon the inclusion of any amount into the Executive’s
income as a result of the failure of this Agreement to comply with the requirements of Section 409A of the Code, a payment not
to exceed the amount that shall be included in income shall be made as soon as is administratively practicable following the discovery
of the failure of the Agreement to comply with Section 409A of the Code and the regulations promulgated thereunder.

 

(Signature Page Follows)

 

    	 	 16	 

     

    

 

IN WITNESS WHEREOF,
each of the Company and the Bank have caused this Agreement to be executed by its duly authorized officer and the Executive has
signed this Agreement, effective as of the date first written above.

 

 

	 	PEOPLES BANK SB
	 	 	 
	 	 	 
	 	By:	/s/
Edward Furticella
	 	Name:	Edward Furticella
	 	Title:	Director
	 	 	 
	 	 	 
	 	NORTHWEST INDIANA BANCORP
	 	 	 
	 	 	 
	 	By:	/s/ Edward  Furticella
		Name:	Edward  Furticella
	 	Title:	Director
	 	 	 
	 	 	 
	 	DAVID A. BOCHNOWSKI
	 	 	 
	 	/s/ David A. Bochnowski
	 	10203 Cherrywood Lane
	 	Munster, Indiana  46321

 

    	 	 17

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