Document:

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

     This Agreement was originally  effective as of March 1, 2006 by and between
Fairport Savings Bank (the "Bank"), a  federally-chartered  savings  association
with its principal executive office at 45 South Main Street,  Fairport, New York
14450,  and Dana  Gavenda  ("Executive").  The  Agreement  has been  amended and
restated on September  24, 2008 and  effective as of March 1, 2006,  in order to
comply  with  certain  changes in the law made by Section  409A of the  Internal
Revenue Code of 1986, as amended (the "Code").

     WHEREAS,  the Bank  wishes to assure  itself of the  continued  services of
Executive for the period provided in this Agreement; and

     WHEREAS,  Executive  is willing to  continue  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.   POSITION AND RESPONSIBILITIES

     (a) During  the period of his  employment  hereunder,  Executive  agrees to
serve as President and Chief Executive Officer,  and as a member of the Board of
Directors (the "Board"), of the Bank. During said period,  Executive also agrees
to serve, if elected,  as an officer and director of any subsidiary or affiliate
of the Bank.  Failure to reelect  Executive as the President and Chief Executive
Officer of the Bank  without  the consent of  Executive  during the term of this
Agreement shall constitute a breach of this Agreement.

     (b) During the period of his  employment  hereunder,  except for periods of
absence  occasioned by illness,  reasonable  vacation  periods,  and  reasonable
leaves of absence,  Executive shall devote  substantially all his business time,
attention,  skill,  and  efforts to the  faithful  performance  of his duties as
President and Chief  Executive  Officer of the Bank,  including  overseeing  and
directing  the  day-to-day   operations  and  management  of  the  Bank;  making
recommendations to the Board regarding  asset/liability  management,  long-range
planning and  compensation of officers;  promoting the business of the Bank; and
such  other  duties  as the  Board  may  from  time to time  reasonably  direct.
Provided,  however,  that with the  approval  of the Board,  as  evidenced  by a
resolution  of the Board,  Executive  may serve,  or continue  to serve,  on the
boards of directors  of, and hold other  offices or positions  with  business or
not-for-profit  organizations,  which, in the Board's  judgment,  do not compete
with the Bank or will not present any  conflict  of interest  with the Bank,  or
materially  affect  the  performance  of  Executive's  duties  pursuant  to this
Agreement  (for purposes of this Section 1(b),  Board  approval  shall be deemed
provided  as to  service  with any such  business  or other  organizations  that
Executive was serving as of the date of this Agreement).

2.   TERM

     The period of Executive's employment under this Agreement shall begin as of
the date first above written and shall continue for a period of thirty-six  (36)
full calendar months  thereafter.  Commencing on the first  anniversary  date of
this  Agreement  and  continuing  at  each  anniversary  date  thereafter,  this

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Agreement  shall renew for an additional year such that the remaining term shall
be three (3) years;  provided,  however,  that after the initial thirty-six (36)
month term of this  Agreement,  if written  notice of  nonrenewal is provided to
Executive  at least ten (10) days and not more than sixty (60) days prior to any
anniversary  date, the employment of Executive  hereunder shall cease at the end
of twelve (12) months  following  such  anniversary  date.  Prior to each notice
period for non-renewal,  the  disinterested  members of the Board will conduct a
performance  evaluation  and review of  Executive  for  purposes of  determining
whether to extend the  Agreement,  and the results  thereof shall be included in
the minutes of the Board's meeting and communicated to Executive.

3.   COMPENSATION AND REIMBURSEMENT

     (a) The  compensation  specified under this Agreement shall  constitute the
salary and  benefits  paid for the duties  described in Section  1(b).  The Bank
shall pay Executive as  compensation a salary of not less than $140,000 per year
("Base  Salary"),  which Base  Salary  shall be payable in  accordance  with the
normal  and  customary  payroll  practices  of the  Bank,  but in no event  less
frequently than monthly.  During the period of this Agreement,  Executive's Base
Salary  shall be reviewed at least  annually  and such Base Salary  shall not be
less than $147,500 for the twelve (12) months  beginning  March 1, 2007, and not
less than  $155,000  for the twelve (12) months  beginning  March 1, 2008.  Such
review shall be conducted by a Committee  designated by the Board, and the Board
may increase,  but not decrease,  Executive's  Base Salary (any increase in Base
Salary  shall  become the "Base  Salary"  for  purposes of this  Agreement).  In
addition  to the Base  Salary  provided  in this  Section  3(a),  the Bank shall
provide Executive, at no cost to Executive,  with all such other benefits as are
provided  uniformly to permanent  full-time  employees of the Bank.  Base Salary
shall  include  any  amounts  of   compensation   deferred  by  Executive  under
tax-qualified and nontax-qualified plans maintained by the Bank.

     (b)  The  Bank  will  provide   Executive  with  employee   benefit  plans,
arrangements  and  perquisites   substantially  equivalent  to  those  in  which
Executive was participating or otherwise deriving benefit from immediately prior
to the beginning of the term of this Agreement,  and the Bank will not,  without
Executive's prior written consent, make any changes in such plans,  arrangements
or  perquisites  which would  adversely  affect  Executive's  rights or benefits
thereunder, unless such change is part of a change in benefits applicable to all
employees  of the Bank in  connection  with a bank-wide  benefit  plan.  Without
limiting the  generality of the foregoing  provisions  of this  Subsection  (b),
Executive  will be  entitled to  participate  in or receive  benefits  under any
employee  benefit  plans  including  but  not  limited  to,   retirement  plans,
supplemental  retirement  plans,  pension  plans,  profit-sharing  plans,  stock
benefit  plans,  health-and-accident  plans,  medical  coverage  and  any  other
employee benefit plan or arrangement made available by the Bank in the future to
its senior  executives and key management  employees,  subject to and on a basis
consistent with the terms,  conditions and overall  administration of such plans
and arrangements.  Executive will be entitled to incentive  compensation  and/or
bonuses as  provided in any plan of the Bank in which  Executive  is eligible to
participate  (and he shall be  entitled  to a pro rata  distribution  under  any
incentive  compensation  or bonus plan as to any year in which a termination  of
employment   occurs,   other  than   termination  for  Cause).   Such  incentive
compensation  and/or bonuses shall be based on Executive's  performance  and the
performance and financial condition of the Bank. Nothing paid to Executive under

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any such plan or arrangement will be deemed to be in lieu of other  compensation
to which Executive is entitled under this Agreement.

     (c) In addition to the Base Salary  provided for by  paragraph  (a) of this
Section 3, the Bank shall pay or reimburse  Executive for all reasonable  travel
and  other  reasonable   expenses   incurred  by  Executive  in  performing  his
obligations under this Agreement and may provide such additional compensation in
such form and such amounts as the Board may from time to time determine.

     (d)  Executive  shall be  entitled to five (5) weeks of paid  vacation  per
calendar  year,  or such greater  period as may be approved from time to time by
the Board of Directors.  In the event that the full vacation is not taken in any
year due to the work commitments of Executive, Executive may carry over any such
unused  vacation  time from year to year unless such  carryover is prohibited by
law or regulation. Upon any termination of Executive, Executive will be entitled
to be paid the value of any accrued or  accumulated  vacation  time and shall be
required to reimburse  the Bank for the value of any vacation time taken but not
yet accrued.

     (e)  Executive  shall  also be  entitled  to an  automobile  of the  Bank's
selection  to be used by  Executive  in  rendering  services to the Bank and for
limited personal use, together with reimbursement for all gas, oil, maintenance,
insurance and repairs  required by reason of the use of such vehicle.  Executive
shall be  required  to account  for all costs of use of such  automobile  in the
manner prescribed by the Board.

4.   PAYMENTS TO EXECUTIVE UPON AN EVENT OF TERMINATION

     (a) Upon the  occurrence  of an Event of  Termination  (as herein  defined)
during  Executive's term of employment  under this Agreement,  the provisions of
this Section shall apply. As used in this  Agreement,  an "Event of Termination"
shall mean and include any one or more of the following:

     (i)  the  termination  by the  Bank  of  Executive's  full-time  employment
          hereunder for any reason other than following a Change in Control,  as
          defined in Section 5(a) hereof,  or termination  for Cause, as defined
          in  Section 8 hereof,  or upon  Retirement  as  defined  in  Section 7
          hereof, or for Disability as set forth in Section 6 hereof; and

     (ii) Executive's  resignation from the Bank's employ,  upon any (A) failure
          to elect or reelect or to appoint or reappoint  Executive as President
          and Chief  Executive  Officer  of the  Bank,  unless  consented  to by
          Executive,  (B) material change in Executive's  function,  duties,  or
          responsibilities,  which  change would cause  Executive's  position to
          become  one of lesser  responsibility,  importance,  or scope from the
          position and attributes thereof described in Section 1 above, to which
          Executive  has not agreed in  writing  (and any such  material  change
          shall be deemed a continuing breach of this Agreement), (C) relocation
          of  Executive's  principal  place of  employment by more than 30 miles
          from  its  location  at the  effective  date  of the  Agreement,  or a
          material  reduction in the benefits and  perquisites to Executive from
          those  being  provided  as of the  effective  date of  this  Agreement

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          (unless  such  reduction  is part of a  reduction  in  benefits to all
          employees of the Bank in connection with a bank-wide benefit plan), or
          (D) material breach of this Agreement by the Bank.

     Upon the  occurrence of any event  described in clauses (ii) (A), (B), (C),
or (D)  above,  Executive  shall  have  the  right to  elect  to  terminate  his
employment  under this Agreement by  resignation  upon not less than thirty (30)
days prior  written  notice  given  within a  reasonable  period of time (not to
exceed90  days)  after  the event  giving  rise to said  right to  elect,  which
termination by Executive  shall be an Event of Termination;  provided,  however,
that the Bank shall have 30 days following its receipt of such written notice to
cure the  situation  identified  by  Executive  as the  basis  for the  Event of
Termination.   Notwithstanding  the  preceding  sentence,  in  the  event  of  a
continuing  breach of this  Agreement by the Bank,  Executive,  after giving due
notice within the  prescribed  time frame of an initial event  specified  above,
shall not waive any rights  solely  under  this  Agreement  and this  Section by
virtue of the fact that Executive has submitted his resignation but has remained
in the  employment  of the Bank and is  engaged  in good  faith  discussions  to
resolve any  occurrence  of an event  described in clauses (A), (B), (C), or (D)
above.

     (b) Upon the  occurrence  of an Event of  Termination,  the Bank  shall pay
Executive,  or,  in the  event  of his  subsequent  death,  his  beneficiary  or
beneficiaries, or his estate, as the case may be, as severance pay or liquidated
damages, or both, a cash amount equal to the greater of the payments due for the
remaining term of the Agreement,  or three (3) times the sum of: (i) the highest
annual rate of Base Salary paid to Executive  at any time under this  Agreement,
and (ii) the greater of (x) the average annual cash bonus paid to Executive with
respect  to  the  three  (3)  completed  fiscal  years  prior  to the  Event  of
Termination,  or (y) the cash bonus paid to Executive with respect to the fiscal
year ended prior to the Event of Termination; provided however, that if the Bank
is not in compliance with its minimum  capital  requirements or if such payments
would  cause  the  Bank's  capital  to be  reduced  below  its  minimum  capital
requirements,  such payments shall be deferred until such time as the Bank is in
capital compliance; and provided further, that in no event shall total severance
compensation from all sources exceed three (3) times Executive's  average annual
compensation  over the five (5) fiscal years  preceding the fiscal year in which
the  termination  of employment  occurs (for purposes of this provision and only
for purposes of this provision,  compensation shall mean any payment of money or
provision of any other thing of value in consideration of employment, including,
without  limitation,  base  salary,  commissions,  bonuses,  pension  and profit
sharing  plans,  severance  payments,  retirement,  director or committee  fees,
fringe  benefits,  and the payment of expense  items without  accountability  or
business  purpose  or that do not  meet the  Internal  Revenue  Service  ("IRS")
requirement  for  deductibility  by the Bank).  The present value of the payment
required hereunder shall be made in a lump sum within thirty (30) days following
Executive's  "Separation  from  Service,"  as  defined  in  Code  Section  409A,
provided,  however,  if Executive is a "Specified  Employee," as defined in Code
Section 409A, then,  solely to the extent required to avoid penalties under Code
Section  409A,  such payment shall be delayed until the first day of the seventh
full month following  Executive's  Separation from Service.  For these purposes,
present value shall be determined  using the applicable  federal rate under Code
Section  1274(d).  Such  payments  shall not be reduced  in the event  Executive
obtains other employment following termination of employment.

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     (c) Upon the occurrence of an Event of Termination,  the Bank will cause to
be continued at the Bank's  expense,  life,  insurance  coverage and non-taxable
medical and dental  insurance  that is  substantially  identical to the coverage
maintained by the Bank for  Executive  prior to his  termination,  except to the
extent such coverage may be changed in its  application  to all Bank  employees.
Such  coverage  shall  cease  thirty-six  (36)  months  following  the  Event of
Termination.

5.   CHANGE IN CONTROL

     (a) No benefit  shall be payable  under this  Section 5 unless  there shall
have  been a Change  in  Control,  as set  forth  below.  For  purposes  of this
Agreement,  a "Change in Control"  shall mean a change in control of the Bank or
the Bank's  mid-tier  holding  company (the "Company") or mutual holding company
(the "MHC"),  of a nature that: (i) would be required to be reported in response
to Item 1(a) of the current report on Form 8-K, as in effect on the date hereof,
pursuant  to Section  13 or 15(d) of the  Securities  Exchange  Act of 1934 (the
"Exchange  Act");  or (ii) without  limitation such a Change in Control shall be
deemed to have occurred at such time as (a) any "person" (as the term is used in
Sections  13(d) and 14(d) of the  Exchange  Act) is or becomes  the  "beneficial
owner"  (as  defined  in  Rule  13d-3  under  the  Exchange  Act),  directly  or
indirectly, of securities of the Bank or the Company representing 25% or more of
the combined  voting  power of Bank's or the  Company's  outstanding  securities
except for any securities  purchased by the Bank's employee stock ownership plan
or trust;  or (b)  individuals  who constitute the Board on the date hereof (the
"Incumbent  Board")  cease for any  reason  to  constitute  at least a  majority
thereof,  provided  that any person  becoming a director  subsequent to the date
hereof whose election was approved by a vote of at least  three-quarters  of the
members of the entire Board of Directors then in office shall be considered, for
purposes of this clause (b), as though he were a member of the Incumbent  Board;
or  (c) a  plan  of  reorganization,  merger,  consolidation,  sale  of  all  or
substantially  all the assets of the Bank or the Company or similar  transaction
in which the Bank or Company is not the surviving  institution  occurs; or (d) a
proxy statement soliciting proxies from stockholders of the Bank or the Company,
by someone other than the current management of the Company, seeking stockholder
approval of a plan of reorganization, merger or consolidation of the Bank or the
Company  or similar  transaction  with one or more  corporations  as a result of
which the outstanding shares of the class of securities then subject to the plan
are exchanged for or converted into cash or property or securities not issued by
the  Company;  or (e) a  tender  offer  is made  for  25% or more of the  voting
securities of the Bank or the Company,  and the shareholders owning beneficially
or of  record  25% or  more of the  outstanding  securities  of the  Bank or the
Company have  tendered or offered to sell their  shares  pursuant to such tender
offer  and such  tendered  shares  have been  accepted  by the  tender  offeror.
Notwithstanding  anything  in this  sub-section  to the  contrary,  a Change  in
Control  shall not be deemed to have  occurred upon the issuance of common stock
by the Company in a minority stock offering, or upon conversion of the Company's
mutual  holding  company  parent  to  stock  form,  or in  connection  with  any
reorganization used to effect such a conversion.

     (b) If any of the events  described in Section 5(a) hereof  constituting  a
Change in Control  shall  have  occurred,  Executive  shall be  entitled  to the
benefits  provided  in  paragraphs  (c)  and  (d) of  this  Section  5 upon  his
subsequent  termination  of  employment  at any  time  during  the  term of this
Agreement  (regardless of whether such termination  results from his resignation
or his dismissal).

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     (c) Upon the occurrence of a Change in Control, Executive, or, in the event
of his subsequent  death  (subsequent to such  termination),  his beneficiary or
beneficiaries, or his estate, as the case may be, shall receive as severance pay
or liquidated  damages,  or both, an amount equal to three times the sum of: (i)
the highest  annual rate of Base Salary paid to Executive at any time under this
Agreement,  and (ii) the  greater of (x) the  average  annual cash bonus paid to
Executive  with  respect  to the  three  completed  fiscal  years  prior  to the
termination,  or (y) the cash bonus paid to Executive with respect to the fiscal
year ended prior to the termination;  provided however,  that if the Bank is not
in compliance  with its minimum  capital  requirements or if such payments would
cause the Bank's capital to be reduced below its minimum  capital  requirements,
such  payments  shall be  deferred  until  such  time as the Bank is in  capital
compliance;  and  provided  further  that  in no  event  shall  total  severance
compensation  from all sources  exceed three times  Executive's  average  annual
compensation  over the five fiscal years  preceding the fiscal year in which the
termination  of employment  occurs (for purposes of this  provision and only for
purposes  of this  provision,  compensation  shall mean any  payment of money or
provision of any other thing of value in consideration of employment, including,
without  limitation,  base  salary,  commissions,  bonuses,  pension  and profit
sharing  plans,  severance  payments,  retirement,  director or committee  fees,
fringe  benefits,  and the payment of expense  items without  accountability  or
business  purpose or that do not meet the IRS requirement for  deductibility  by
the Bank). The foregoing severance/liquidated damages payment(s), as well as all
other  benefits  described in this Agreement that would be payable upon a Change
in Control,  shall be made to Executive's  surviving  spouse, or if no surviving
spouse,  to his estate, in the event that the Company or the Bank enters into an
agreement  that would cause a Change in Control of the Bank,  and Executive dies
after such  agreement  is executed  but prior to  consummation  of the Change in
Control,  which payments shall commence upon, and shall be contingent  upon, the
actual  consummation of the Change in Control.  The present value of the payment
required hereunder shall be made in a lump sum within thirty (30) days following
Executive's "Separation from Service," as defined in Code Section 409A; provided
however,  if  Executive is a  "Specified  Employee,"  as defined in Code Section
409A, then,  solely to the extent required to avoid penalties under Code Section
409A,  such  payment  shall be delayed  until the first day of the seventh  full
month following Executive's Separation from Service. For these purposes, present
value shall be determined  using the applicable  federal rate under Code Section
1274(d).

     (d) Upon the occurrence of a Change in Control  followed by the termination
of  Executive's  employment,  the Bank will cause to be  continued at the Bank's
expense life, health and disability insurance coverage  substantially  identical
to the  coverage  maintained  by the Bank for  Executive  prior to the Change in
Control, except to the extent such coverage is changed in its application to all
employees of the Bank. Such coverage shall cease thirty-six (36) months from the
date of Executive's termination of employment.

     (e) Notwithstanding the preceding paragraphs of this Section 5, in no event
shall the aggregate payments or benefits to be made or afforded to the Executive
under  said  paragraphs  (the  "Termination  Benefits")  constitute  an  "excess
parachute payment" under Section 280G of the Code or any successor thereto,  and
in order to avoid  such a  result,  Termination  Benefits  will be  reduced,  if
necessary, to an amount (the "Non-Triggering Amount"), the value of which is one
dollar  ($1.00)  less  than an amount  equal to three (3) times the  Executive's
"base  amount," as  determined in  accordance  with said Code Section 280G.  The
allocation of the reduction required hereby among Termination  Benefits provided
by the  preceding  paragraphs  of this  Section  5 shall  be  determined  by the

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Executive,  provided,  however,  that if it is determined  that such election by
Executive  shall be in violation of Code Section  409A,  the  allocation  of the
required reduction shall be pro-rata.

6.   DISABILITY OR DEATH

     (a) If  Executive  is unable to perform his duties  hereunder  by reason of
Disability,  the Bank may  terminate  Executive's  employment.  Termination  for
Disability shall be determined by a majority of the  disinterested  directors of
the Board,  and shall be effective thirty (30) days after written notice of such
termination is given to Executive.

     (b) For purposes of this Agreement,  "Disability" or being "Disabled" shall
be  deemed  to have  occurred  if:  (i)  Executive  is  unable  to engage in any
substantial gainful activity by reason of any medically determinable physical or
mental  impairment  that can be  expected  to  result  in  death,  or last for a
continuous  period of not less than 12 months;  (ii) by reason of any  medically
determinable  physical  or mental  impairment  that can be expected to result in
death,  or last for continuous  period of not less than 12 months,  Executive is
receiving income replacement benefits for a period of not less than three months
under an  accident  and health plan  covering  employees  of the Bank;  or (iii)
Executive  is  determined  to  be  totally   disabled  by  the  Social  Security
Administration.  If any controversy  arises as to whether Executive is Disabled,
the Board may require  that  Executive  be examined by a physician  and, in such
case,  the decision of such  physician  shall be  conclusive  and binding on all
parties. The examining physician shall be selected by the Board.

     (c)  In  the  event  the  Bank  terminates  Executive's  employment  due to
Disability, the Bank will:

                  (1) Pay  Executive,  or  cause  Executive  to be paid  under a
          disability  insurance  plan,  as disability  pay, a bi-weekly  payment
          equal to the 65% of  Executive's  monthly  rate of Base  Salary on the
          effective date of such  termination.  These disability  payments shall
          commence on the effective date of Executive's termination and will end
          on the  earlier  (i)  the  date  Executive  returns  to the  full-time
          employment of the Bank in the same  capacity as he was employed  prior
          to  his  termination  for  Disability;   (ii)  Executive's   full-time
          employment  by  another  employer;  (iii)  three  (3)  years  from the
          effective date of Executive's  termination;  (iv) Executive  attaining
          the age of 65; or (v) Executive's  death. If Executive is covered by a
          disability  insurance  policy  purchased  by the Bank for  Executive's
          benefit,  any  payments  required by this Section 6 shall be satisfied
          first  through the benefits paid to Executive  under said policy,  and
          the Bank will be responsible only for payments required hereunder that
          are in excess of the policy payments.

                  (2)  Cause to be  continued  life  and  health  care  coverage
          substantially  identical  to the coverage  maintained  by the Bank for
          Executive  prior to his  termination  for  Disability,  except  to the
          extent such  coverage  may be changed in its  application  to all Bank
          employees.  This coverage shall cease upon the termination of payments
          to Executive under Section 6(c)(1) above.

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     (d) In the event of Executive's death during the term of the Agreement, his
estate,  legal  representatives or named beneficiaries (as directed by executive
in writing) shall be paid  Executive's  Base Salary as defined in paragraph 3(a)
at the rate in effect at the time of  Executive's  death for a period of one (1)
year from the date of Executive's  death,  and the Bank will continue to provide
medical,  dental and other insurance  benefits normally provided for Executive's
family for one (1) year after Executive's death.

7.   TERMINATION UPON RETIREMENT

     Termination  by the Bank of  Executive  based on  "Retirement"  shall  mean
termination  for any reason of  Executive's  employment on or after age 65 or in
accordance with any retirement policy established with Executive's  consent with
respect to him. Upon termination of Executive upon  Retirement,  Executive shall
be  entitled to all  benefits  under any  retirement  plan of the Bank and other
plans to which Executive is a party,  but Executive shall not be entitled to any
payments  or benefits  that would be due as a result of an Event of  Termination
under Section 4 hereof.

8.   TERMINATION FOR CAUSE

     The term  "Termination  for Cause" shall mean  termination  by a vote of at
least a majority of the entire  membership of the Board  because of  Executive's
personal dishonesty,  incompetence,  willful misconduct, any breach of fiduciary
duty involving  personal profit,  intentional  failure to perform stated duties,
willful violation of any law, rule, or regulation (other than traffic violations
or similar offenses) or final cease-and-desist  order, the willful commission of
any act  that in the  judgment  of the  Board  would  likely  cause  substantial
economic damage to the Bank or the Company or substantial injury to the business
reputation  of the Bank or the Company,  or material  breach of any provision of
this Agreement.  Executive  shall not have the right to receive  compensation or
other benefits for any period after Termination for Cause

9.   NOTICE

     (a) Any  termination by the Bank or the Executive  shall be communicated by
Notice of  Termination  to the other party.  For purposes of this  Agreement,  a
"Notice of  Termination"  shall mean a written notice which shall:  indicate the
specific  termination  provision in this  Agreement  relied upon; in the case of
Termination  for  Cause,  include a copy of a  resolution  duly  adopted  by the
affirmative  vote of not less than a majority  of the entire  membership  of the
Board; and, set forth in reasonable  detail the facts and circumstances  claimed
to  provide  a basis for  termination  of  employment  under  the  provision  so
indicated.  "Date  of  Termination"  shall  mean  the  date  of  the  Notice  if
Termination.  If,  within thirty (30) days after any Notice of  Termination  for
Cause is given, the party receiving the Notice of Termination notifies the other
party that a dispute  exists  concerning  the  termination,  the  parties  shall
promptly  proceed to  arbitration.  Executive's  services with the Bank shall be
suspended pending resolution of such dispute by arbitration,  and the Bank shall
discontinue to pay Executive  compensation until the dispute is finally resolved
in  accordance  with this  Agreement.  If it is  determined  that  Executive  is
entitled to  compensation  and benefits under Sections 4 or 5 of this Agreement,
the  payment  of such  compensation  and  benefits  by the Bank  shall  commence
immediately  following the date of resolution by arbitration,  with interest due

                                       8
<PAGE>
Executive on the cash amount that would have been paid pending  arbitration  (at
the prime rate as published in The Wall Street Journal from time to time).

10.  POST-TERMINATION OBLIGATIONS

     (a) As a material  inducement  for the Bank to enter  into this  Agreement,
upon  termination of this  Agreement for any reason,  other than the reasons set
forth in Sections 5 or 6 of this  Agreement,  for a period of two (2) years from
the Date of  Termination  (one year from the  termination  of the Agreement as a
result of a Change in Control) Executive shall not at any time or place,  either
directly or indirectly,  engage in any business or activity in competition  with
the business of the Bank, or be a director, officer or employee or consultant to
any bank, savings bank, savings association or credit union, operating in Monroe
County, if such entity has assets of less than $1.0 billion.

     (b) All payments and benefits to Executive  under this  Agreement  shall be
subject to Executive's  compliance  with paragraph (c) of this Section 10 during
the term of this  Agreement  and for one (1) full year after the  expiration  or
termination hereof.

     (c) Executive shall, upon reasonable  notice,  furnish such information and
assistance  to the Bank as may  reasonably be required by the Bank in connection
with any litigation in which it or any of its  subsidiaries or affiliates is, or
may become, a party.

     (d)  Executive  recognizes  and  acknowledges  that  the  knowledge  of the
business activities and plans for business activities of the Bank and affiliates
thereof,  as it may exist from time to time,  is a valuable,  special and unique
asset of the business of the Bank.  Executive will not, during or after the term
of his  employment,  disclose  any  knowledge of the past,  present,  planned or
considered  business activities of the Bank or affiliates thereof to any person,
firm, corporation,  or other entity for any reason or purpose whatsoever (except
for such  disclosure  as may be  required to be provided to the Office of Thrift
Supervision  ("OTS"),  the Federal Deposit Insurance  Corporation  ("FDIC"),  or
other federal  banking  agency with  jurisdiction  over the Bank or  Executive).
Notwithstanding the foregoing,  Executive may disclose any knowledge of banking,
financial and/or economic principles, concepts or ideas which are not solely and
exclusively  derived from the business  plans and  activities  of the Bank,  and
Executive  may disclose any  information  regarding  the Bank which is otherwise
publicly  available.  In the event of a breach or threatened breach by Executive
of the provisions of this Section 10, the Bank will be entitled to an injunction
restraining Executive from disclosing, in whole or in part, the knowledge of the
past,  present,  planned  or  considered  business  activities  of the  Bank  or
affiliates  thereof,  or  from  rendering  any  services  to any  person,  firm,
corporation,  other entity to whom such knowledge, in whole or in part, has been
disclosed or is threatened to be disclosed.  Nothing herein will be construed as
prohibiting the Bank from pursuing any other remedies  available to the Bank for
such  breach or  threatened  breach,  including  the  recovery  of damages  from
Executive.

11.  EFFECT ON PRIOR AGREEMENTS AND EXISTING BENEFITS PLANS

     This Agreement contains the entire understanding between the parties hereto
and  supersedes  any  prior  employment   agreement  between  the  Bank  or  any
predecessor  of the Bank and  Executive,  except that this  Agreement  shall not

                                       9
<PAGE>
affect or operate to reduce any benefit or compensation  inuring to Executive of
a kind elsewhere  provided.  No provision of this Agreement shall be interpreted
to mean that  Executive  is  subject  to  receiving  fewer  benefits  than those
available to him without reference to this Agreement.

12.  NO ATTACHMENT

     (a) Except as  required  by law,  no right to receive  payments  under this
Agreement  shall be  subject to  anticipation,  commutation,  alienation,  sale,
assignment,  encumbrance,  charge,  pledge, or  hypothecation,  or to execution,
attachment,  levy, or similar process or assignment by operation of law, and any
attempt,  voluntary  or  involuntary,  to affect any such action  shall be null,
void, and of no effect.

     (b) This  Agreement  shall be binding  upon,  and inure to the  benefit of,
Executive and the Bank and their respective successors and assigns.

13.  MODIFICATION AND WAIVER

     (a) This  Agreement may not be modified or amended  except by an instrument
in writing signed by the parties hereto.

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

14.  REQUIRED PROVISIONS

     (a) The Bank's Board of Directors may terminate  Executive's  employment at
any time,  but any  termination  by the Bank's  Board of  Directors,  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 8 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) (12 U.S.C. ss.ss. 1818(e)(3)) or 8(g) (12 U.S.C. ss. 1818(g)) of
the Federal  Deposit  Insurance  Act, as amended by the  Financial  Institutions
Reform,  Recovery  and  Enforcement  Act of 1989 (the  "FDI  Act"),  the  Bank's
obligations  under this Agreement  shall be suspended as of the date of service,
unless  stayed by  appropriate  proceedings.  If the  charges  in the notice are
dismissed,  the Bank may in its  discretion (i) pay 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) (12 U.S.C.  ss.ss.  1818(e)) or 8(g) (12 U.S.C. ss. 1818(g)) of the

                                       10
<PAGE>
FDI Act, all  obligations of the Bank under this Agreement shall terminate as of
the effective date of the order,  but vested rights of the  contracting  parties
shall not be affected.

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

     (e) All  obligations of the Bank under this Agreement  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, at the time
the FDIC or the Resolution Trust Corporation enters into an agreement to provide
assistance  to or on behalf of the Bank;  or (ii) by the OTS at the time the OTS
or its  Regional  Director  approves a  supervisory  merger to resolve  problems
related to the  operations of the Bank or when the Bank is determined by the OTS
or FDIC 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 their compliance with 12 USC
Section 1828(k) and any regulations promulgated thereunder.

15.  SEVERABILITY

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

16.  HEADINGS FOR REFERENCE ONLY

     The headings of sections  and  paragraphs  herein are  included  solely for
convenience of reference and shall not control the meaning or  interpretation of
any of the provisions of this Agreement.

17.  GOVERNING LAW

     This  Agreement  shall be governed  in all  respects,  including  validity,
construction,  capacity and  performance,  by the laws of the State of New York,
but only to the extent not superseded by federal law.

18.  ARBITRATION

     Any  dispute  or  controversy  arising  under or in  connection  with  this
Agreement shall be settled exclusively by arbitration,  conducted before a panel
of three  arbitrators  sitting in a location  selected by the Bank within  fifty
(50) miles of Fairport,  New York, in accordance  with the rules of the American
Arbitration  Association  then in effect.  In the event the need for arbitration
arises the Bank shall select one arbitrator  and the Executive  shall select one
arbitrator.  The  arbitrators  selected  by the  parties  shall  select  a third
arbitrator. The arbitrators shall not have any authority to add to or modify the

                                       11
<PAGE>
provisions  of  this  Agreement  in any  way.  Judgment  may be  entered  on the
arbitrators' award in any court having jurisdiction.

19.  PAYMENT OF FEES AND EXPENSES

     In the event of any dispute  between the Executive  and the Bank  regarding
this  Agreement,  whether  instituted by formal legal  proceedings or otherwise,
including any action taken by Executive in defending against any action taken by
the Bank, the  prevailing  party shall be reimbursed for all costs and expenses,
including reasonable attorney's fees, arising from such dispute,  proceedings or
actions. In the event of a settlement of such dispute, each party shall bear its
own costs and expenses.  Any  reimbursement  owed under this Section 19 shall be
paid  within  ten (10) days of the  furnishing  to the  non-prevailing  party of
written evidence of any costs or expenses incurred by the prevailing party.

20.  INDEMNIFICATION

     The Bank  shall  provide  Executive  (including  his heirs,  executors  and
administrators)   with  coverage  under  a  standard  directors'  and  officers'
liability  insurance policy at its expense,  and shall indemnify  Executive (and
his heirs,  executors and  administrators) to the fullest extent permitted under
federal law against 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 officer of the Bank
(whether  or not he  continues  to be a  director  or  officer  at the  time  of
incurring  such  expenses or  liabilities),  such  expenses and  liabilities  to
include,  but not be limited to, judgments,  court costs and attorneys' fees and
the cost of reasonable  settlements  (such  settlements  must be approved by the
Board of Directors of the Bank).  The obligations of the Bank under this Section
20 shall be subject to 12 C.F.R. ss. 545.121.

21.  SUCCESSOR TO THE BANK

     The Bank  shall  require  any  successor  or  assignee,  whether  direct or
indirect,  by  purchase,   merger,   consolidation  or  otherwise,   to  all  or
substantially   all  the  business  or  assets  of  the  Bank,   expressly   and
unconditionally to assume and agree to perform the Bank's obligations under this
Agreement,  in the same  manner  and to the same  extent  that the Bank would be
required to perform if no such succession or assignment had taken place.

                                       12
<PAGE>

                                   SIGNATURES

     IN WITNESS  WHEREOF,  the Bank has caused this  Agreement to be executed by
its duly authorized officer, and Executive has signed this Agreement, on the day
and date first above written.

ATTEST:                                     FAIRPORT SAVINGS BANK

/s/ Leslie J. Zornow                    By: /s/ Thomas J. Hanss
-------------------------------             -------------------------------
Secretary                                   Chairman of the Board

WITNESS:                                    EXECUTIVE:

/s/ Kathleen Tuff                       By: /s/ Dana C. Gavenda
---------------------------                 --------------------------------
                                            Dana Gavenda

                                       13EX-10.L

Exhibit 10(l)

INDEMNIFICATION AGREEMENT

     This Indemnification Agreement (this “Agreement”) is made as of the ___day of                     , 200_,
by and between Magellan Petroleum Corporation, a Delaware corporation (the “Company”), and
                 
                
       , an individual residing at     
                 
                
   ,             
                
            ,     
                 (the
“Indemnitee”).

Recitals

     A. The Indemnitee is a director, officer, employee or agent of the Company and in such
capacity is performing a valuable service for the Company.

     B. The Delaware General Corporation Law, as amended from time to time (the “DGCL”), permits
the Company to indemnify the officers, directors, employees and agents of the Company.

     C. The Company desires to hold harmless and indemnify the Indemnitee to the fullest extent
authorized or permitted by the provisions of the DGCL, or by any amendment thereof or other
statutory provisions authorizing or permitting such indemnification which hereafter may be adopted.

     D. The Company has entered into this Agreement and has assumed the obligations imposed on the
Company hereby in order to induce the Indemnitee to serve or to continue to serve as a director,
officer, employee or agent of the Company, and acknowledges that the Indemnitee is relying upon
this Agreement in serving or continuing to serve in such capacity.

Agreement

     Accordingly, in consideration of the Indemnitee’s agreement to serve or continue to serve as a
director and/or officer of the Company, the Company and the Indemnitee agree as follows:

          1. Initial Indemnification.

               (a) General. From and after the date hereof, the Company shall indemnify the
Indemnitee whenever he was or is a party or is threatened to be made a party to any threatened,
pending or completed action, suit or proceeding, whether civil, criminal, administrative or
investigative (other than an action by or in the right of the Company to procure a judgment in its
favor), by reason of the fact that he is or was a director, officer, employee or agent of the
Company, or is or was serving at the request of the Company as a director, officer, employee or
agent of another corporation, partnership, joint venture, trust or other enterprise, or by reason
of any action alleged to have been taken or omitted in any such capacity, against any and all
expenses (including, without limitation, attorneys’ fees and expenses), judgments, fines,
settlements and other amounts actually and reasonably incurred by the Indemnitee in connection with
such action, suit or proceeding and any appeal therefrom if the Indemnitee acted in good faith and
in a manner which he reasonably believed to be in or not opposed to the best interests of the
Company and, with respect to any criminal action or proceeding, had no reasonable cause

 

 

to believe his conduct was unlawful. The termination of any action, suit or proceeding by
judgment, order, settlement, conviction or upon a plea of nolo contendere or its equivalent shall
not, of itself, create a presumption that the Indemnitee did not satisfy the foregoing standard of
conduct to the extent applicable thereto.

               (b) Derivative Actions. From and after the date hereof, the Company shall indemnify
the Indemnitee when he was or is a party or is threatened to be made a party to any threatened,
pending or completed action, suit or proceeding by or in the right of the Company to procure a
judgment in its favor by reason of the fact that he is or was or had agreed to become a director,
officer, employee or agent of the Company, or is or was serving at the request of the Company as a
director, officer, employee, or agent of another corporation, partnership, joint venture, trust or
other enterprise, against expenses (including, without limitation, attorneys’ fees and expenses)
actually and reasonably incurred by him in connection with the defense or settlement of such
action, suit or proceeding or any appeal therefrom if he acted in good faith and in a manner he
reasonably believed to be in or not opposed to the best interests of the Company, except that no
indemnification shall be made in respect of any claim, issue or matter as to which the Indemnitee
shall have been adjudged to be liable to the Company unless and only to the extent that the
Delaware Court of Chancery, or the court in which such action, suit or proceeding is or was
brought, shall determine upon application that, despite the adjudication of liability, but in view
of all the circumstances of the case, the Indemnitee is fairly and reasonably entitled to indemnity
for such expenses and then only to the extent that the Delaware Court of Chancery or such other
court shall determine.

               (c) Determination of Entitlement. Any indemnification under Section 1(a) or 1(b)
hereof (unless ordered by a court) shall be made by the Company only if authorized in the specific
case upon a determination, in accordance with Section 4 hereof or any applicable provision of the
Company’s Restated Certificate of Incorporation, as then amended (the “Charter”), its By-laws as
then amended (the “By-laws”), any other agreement, any resolution or otherwise, that
indemnification of the Indemnitee is proper in the circumstances because he has met the applicable
standard of conduct set forth in Section 1(a) or (b) above. Such determination shall be made (i)
by the Company’s Board of Directors (the “Board”) by a majority vote of a quorum consisting of
directors who are not parties to such action, suit or proceeding, (ii) by a committee of such
directors designate by majority vote of such directors, even though less than a quorum, (iii) if
such a quorum of disinterested directors is not available, or if such directors so direct, by
independent legal counsel in a written opinion or (iv) by the stockholders of the Company (the
"Stockholders”).

               (d) Expenses. To the extent that the Indemnitee has been successful on the merits or
otherwise in defense of any action, suit or proceeding referred to in Section 1(a) or 1(b) hereof,
or in defense of any claim, issue or matter therein, he shall be indemnified against expenses
(including, without limitation, attorneys’ fees and expenses) actually and reasonably incurred by
him in connection therewith. Expenses (including, without limitation, attorneys’ fees and
expenses) incurred by the Indemnitee in defending a civil, criminal, administrative or
investigative action, suit or proceeding shall be paid by the Company in advance of the final
disposition of such action, suit or proceeding as authorized in accordance with Section 4 hereof
or any applicable provision of the Charter, the By-laws, any other agreement, any resolution
or otherwise.

2

 

               (e) Benefit Plan Matters. For purposes of this Agreement, references to “other
enterprises” shall include employee benefit plans; references to “fines” shall include any excise
taxes assessed on the Indemnitee with respect to any employee benefit plan; references to “serving
at the request of the Company” shall include any service as a director, officer, employee or agent
of the Company which imposes duties on, or involves services by, the Indemnitee with respect to an
employee benefit plan, its participants or beneficiaries; and a person who acted in good faith and
in a manner he reasonably believed to be in the interest of the participants and the beneficiaries
of an employee benefit plan shall be deemed to have acted in a manner “not opposed to the best
interests of the Company” as referred to in this Section 1.

          2. Additional Indemnification.

               (a) General. If and to the extent that (i) the DGCL is amended hereafter to require
or permit indemnification, expense advancement or exculpation that is or may be more favorable to
the Indemnitee than the maximum permissible indemnification, expense advancement and exculpation
now permitted thereunder and provided in this Agreement, or (ii) the Company reincorporates in or
merges, consolidates or combines into or with any other corporation or entity by virtue of which
transaction the Company is not the surviving, resulting or acquiring corporation and the surviving,
resulting or acquiring corporation is incorporated in a different jurisdiction which at such time
requires or permits indemnification, expense advancement or exculpation that is or may be more
favorable to the Indemnitee than the maximum permissible indemnification, expense advancement and
exculpation now permitted under the DGCL and provided in this Agreement, then pursuant to this
Agreement the Indemnitee shall be entitled to, and this Agreement shall be deemed to be amended to
provide for the Indemnitee’s contractual entitlement to, indemnification, expense advancement and
exculpation to the maximum extent that may be permitted or required under such applicable law at
the time of any initial or subsequent request for indemnity hereunder (determined as contemplated
by Section 4 hereof), whether or not the Company has adopted any Charter or By-law provisions
adopting, effecting or implementing any provisions thereof which are permissive and not mandatory
in nature. Nothing contained herein shall be deemed to detract from, diminish, impair, limit or
adversely affect any right which the Indemnitee may have under this Agreement, and to the extent
that any terms, conditions or provisions of this Agreement (including, without limitation, those in
Section 1 hereof) are more favorable to the Indemnitee than the maximum indemnification, expense
advancement and exculpation then permitted or required under such applicable law (determined as
aforesaid), then such terms, conditions and provisions of this Agreement shall be preserved and
integrated with such more favorable terms from then applicable law and shall continue to apply to
the Indemnitee’s rights by virtue of this Agreement. The same expansion of the Indemnitee’s rights
and deemed inclusion herein and integration herewith of any terms, conditions or provisions more
favorable to the Indemnitee shall occur upon and with respect to any amendment of the provisions
relating to indemnification, expense advancement and exculpation in the Company’s Charter or
By-laws and any provision by the Company to any other officer or director of the Company of any
other different form of indemnification contract or agreement.

3

 

               (b) Examples and Limitations. Without limiting the generality of Section 2(a) hereof,
the Indemnitee hereby may become entitled to indemnification of any and all amounts which he
becomes legally obligated to pay (including, without limitation, damages, judgments, fines,
settlements, expenses of investigation and defense of legal actions, proceedings or claims and
appeals therefrom, and expenses of appeal, attachment or similar bonds) relating to or arising out
of any claim made against him because of any act, failure to act or neglect or breach of duty,
including any actual or alleged error, misstatement or misleading statement, which he commits,
suffers, permits or acquiesces in while acting in his capacity as an officer, director, employee or
agent of the Company, subject only to any limitations on the maximum permissible, expense
advancement or indemnification which may exist under applicable law (determined as provided in
Section 2(a) hereof). In no event, however, shall the Company be obligated under this Section 2 to
make any payment in connection with any claim against the Indemnitee:

               (i) for which payment actually has been made to the Indemnitee under a valid and
collectible insurance policy, except in respect of any retention or excess beyond the amount
of payment under such insurance;

               (ii) which results in a final, nonappealable order for the Indemnitee to pay a fine or
similar governmental imposition which the Company is prohibited by applicable law from
paying; or

               (iii) which is based upon or attributable to the Indemnitee gaining in fact a personal
profit to which he was not legally entitled, including, without limitation, any profits made
from the purchase and sale by the Indemnitee of equity securities of the Company which are
recoverable by the Company pursuant to Section 16(b) of the Securities Exchange Act of 1934
and any profits arising from transactions in any publicly traded securities of the Company
which were effected by the Indemnitee in violation of Section 10(b) of the Securities
Exchange Act of 1934 or Rule 10b-5 promulgated thereunder.

          3. Effect of Future Adverse Changes in Charter, By-laws or Applicable Law.

     Nothing herein shall prevent the adoption by the Board or Stockholders of the Company of any
amendment to the Charter or By-laws of the Company, the effect of which would be to detract from,
diminish, impair, limit or adversely affect the Indemnitee’s rights to indemnification, expense
advancement or exculpation that otherwise exist as of the date hereof pursuant to such Charter or
By-laws as applied to any act or failure to act occurring in whole or in part after the date
hereof. In the event that the Company shall adopt any such amendment to its Charter or By-laws,
however, or in the event that the indemnification, expense advancement or exculpation provisions of
the DGCL (or any other then applicable law) hereafter shall be amended in a manner which may be
deemed to detract from, diminish, impair, limit or adversely affect the Indemnitee’s rights with
respect thereto, such events and changes shall not in any manner or to any extent detract from,
diminish, impair, limit or adversely affect in any manner the contractual indemnification rights
and procedures granted to and benefiting the Indemnitee

4

 

under this Agreement, unless and then except only to the extent that any of such rights or any
of the terms, conditions and provisions of this Agreement shall thereby be made illegal or
otherwise violative of applicable law, in which case the provisions of Section 10(c) hereof shall
apply. For purposes only of determining the Indemnitee’s rights to indemnification pursuant to the
Company’s Charter or By-laws as so amended, and not for purposes of the continuing applicability of
this Agreement in accordance with its terms, any such amendment to the Company’s Charter or By-laws
shall apply to acts or failures to act occurring entirely after the date on which such amendment
was approved and adopted by the Board or the Stockholders, as the case may be, unless the
Indemnitee shall have voted in favor of such approval and adoption as a director or holder of
record of the Company’s voting stock, as the case may be.

          4. Certain Procedures.

               (a) Indemnification Procedures. For purposes of pursuing his rights to
indemnification under Section 1 (other than the second sentence of Section 1(d) hereof, which shall
be governed by Section 4(b) hereof) or Section 2 hereof, as the case may be, the Indemnitee shall
be required to submit to the Board a sworn statement of request for indemnification substantially
in the form of Exhibit 1 hereto (the “Indemnification Statement”) averring that he is entitled to
indemnification hereunder. Submission of an Indemnification Statement to the Board shall create a
presumption that the Indemnitee is entitled to indemnification under Section 1 (other than the
second sentence of Section 1(d) hereof, which shall be governed by Section 4(b) hereof) or Section
2 hereof, as the case may be, and, except as set forth below, the Board shall within 30 calendar
days after submission of the Indemnification Statement specifically determine that the Indemnitee
is so entitled, unless within such 30-calendar day period it shall determine by Board action, based
upon clear and convincing evidence (sufficient to rebut the foregoing presumption) that the
Indemnitee is not entitled to indemnification under Sections 1 or 2 hereof. The Company shall
notify the Indemnitee promptly in writing following such determination. Any evidence rebutting the
Indemnitee’s presumption, to which the Board gave weight in arriving at its determination, shall be
disclosed to the Indemnitee with particularity in such written notice. Notwithstanding anything to
the contrary contained in the three preceding sentences, if the Board determines that it cannot act
on the request for indemnification submitted by the Indemnitee because a determination of
entitlement can not be made in the manner required by Section 1(c) hereof, the Board will act
promptly to retain independent legal counsel or convene a meeting of Stockholders to act on the
request.

               (b) Expense Advancement Procedures. For purposes of determining whether to authorize
advancement of expenses pursuant to the second sentence of Section 1(d) hereof or Section 2(b)
hereof, the Indemnitee shall be required to submit to the Board a sworn statement of request for
advancement of expenses substantially in the form of Exhibit 2 hereto (the “Undertaking”), averring
that (i) he has incurred or will incur actual expenses in defending a civil, criminal,
administrative or investigative action, suit or proceeding and (ii) he undertakes to repay such
amount if it shall be determined ultimately that he is not entitled to be indemnified by the
Company under this Agreement or otherwise. Within 30 calendar days after receipt of the
Undertaking, the Board shall authorize payment of the expenses described in the Undertaking,
whereupon such payments shall be made promptly by the Company. No security shall be

5

 

required in connection with any Undertaking, and any Undertaking shall be accepted without
reference to the Indemnitee’s ability to make repayment.

               (c) Selection of Counsel. In the event the Company shall be obligated under this
Section 4 to pay the expenses of any action, suit or proceeding against the Indemnitee, the Company
shall be entitled to assume the defense of such proceeding, with counsel acceptable to and approved
by the Indemnitee, upon the delivery to the Indemnitee of written notice of the Company’s election
to do so. After delivery of such notice, approval of such counsel by the Indemnitee and the
retention of such counsel by the Company, the Company will not be liable to the Indemnitee under
this Agreement for any fees of separate counsel subsequently incurred by the Indemnitee with
respect to the same action, suit or proceeding; provided, however, that if (i) the
employment of counsel by the Indemnitee has been previously authorized by the Company, (ii) the
Indemnitee shall have reasonably concluded that there may be a conflict of interest between the
Company and the Indemnitee in the conduct of any such defense, or (iii) the Company shall not, in
fact, have employed counsel to assume the defense of such proceeding, then the Indemnitee may
select and employ his own counsel to direct the defense thereof and the fees and expenses of such
counsel shall be paid by the Company. Notwithstanding any assumption of the defense of any such
action, suit or proceeding and employment of counsel with respect thereto by the Company in
accordance with the foregoing, the Indemnitee shall have the right to employ his own separate
counsel to participate in any such action, suit or proceeding at the Indemnitee’s expense.

          5. Corporate Approval. The Company represents and warrants to the Indemnitee that:
(i) the Company has all requisite power and authority to enter into this Agreement and to perform
its obligations hereunder; (ii) this Agreement and the performance of all of the Company’s
obligations hereunder have been approved by all corporate action required on the part of the
Company under the Charter, the By-laws or applicable law or contract; and (iii) this Agreement,
when executed, will constitute the valid and legally binding obligation of the Company, enforceable
against the Company in accordance with its terms, subject to any applicable bankruptcy law and
equitable limitations.

          6. Fees and Expenses of Enforcement. It is the intent of the Company that the
Indemnitee not be required to incur the expenses associated with the enforcement of his rights
under this Agreement by litigation or other legal action because the cost and expense thereof would
substantially detract from the benefits intended to be extended to the Indemnitee hereunder.
Accordingly, if it should appear to the Indemnitee that the Company has failed to comply with any
of its obligations under this Agreement or in the event that the Company or any other person takes
any action to declare this Agreement void or unenforceable, or institutes any action, suit or
proceeding designed (or having the effect of being designed) to deny, or to recover from, the
Indemnitee the benefits intended to be provided to the Indemnitee hereunder, the Company
irrevocably authorizes the Indemnitee from time to time to retain counsel of his choice, at the
expense of the Company as hereafter provided, to represent the Indemnitee in connection with the
initiation or defense of any litigation or other legal action, whether by or against the Company or
any director, officer, stockholder or other person affiliated with the Company, in any
jurisdiction. Regardless of the outcome thereof, the Company shall pay and be solely responsible
for any and all expenses, including without limitation attorneys’ fees and

6

 

expenses, actually and reasonably incurred by the Indemnitee (i) as a result of the Company’s
failure to perform this Agreement or any provision hereof or (ii) as a result of the Company or any
person contesting the validity or enforceability of this Agreement or any provision hereof as
aforesaid.

          7. Maintenance of Insurance and Self Insurance.

               (a) The Company represents that it presently has in force and effect policies of D & O
Insurance in insurance companies and amounts as follows (the “Insurance Policies”).

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Insurer	 	Policy No.	 	 	Amount	 	 	Deductible	 
	Chubb Group of Insurance Companies
	 	 	81691712	 	 	$	10,000,000	 	 	$	250,000	 

Subject only to the provisions of Section 7(b) hereof, the Company hereby agrees that, so long as
Indemnitee shall continue to serve as a director of officer of the Company (or shall continue at
the request of the Company to serve as a director, officer, employee or agent of another company,
partnership, joint venture, trust or other enterprise) and thereafter so long as Indemnitee shall
be subject to any possible claim or threatened, pending or completed action, suit or proceeding,
whether civil, criminal or investigative by reason of the fact that Indemnitee was a director of
the Company (or served in any of said other capacities), the Company will purchase and maintain in
effect for the benefit of Indemnitee one or more valid, binding and enforceable policy or policies
of D & O Insurance providing, in all respects, coverage at least comparable to that presently
provided pursuant to the Insurance Policies.

               (b) The Company shall not be required to maintain said policy or policies of D & O Insurance
in effect if said insurance is not reasonably available or if, in the reasonable business judgment
of the then directors of the Company, either (i) the premium cost for such insurance is
substantially disproportionate to the amount of coverage or (ii) the coverage provided by such
insurance is so limited by exclusions that there is insufficient benefit from such insurance.

          8. Reorganizations. In the event that the Company shall be a constituent corporation
(including any constituent of a constituent) in a merger, reorganization, consolidation,
combination or similar transaction, the Company, if it shall not be the surviving, resulting or
acquiring corporation therein, shall require as a condition thereto the surviving, resulting or
acquiring corporation to expressly assume and adopt this Agreement and to agree to indemnify the
Indemnitee to the full extent provided in this Agreement. Whether or not the Company is the
resulting, surviving or acquiring corporation in any such transaction, the Indemnitee shall stand
in the same position under this Agreement with respect to the resulting, surviving or acquiring
corporation as he would have with respect to the Company if its separate existence had continued.

7

 

          9. Nonexclusivity, Survival and Subrogation.

               (a) Nonexclusivity. The rights to indemnification and advancement provided by this
Agreement shall not be exclusive of any other rights to which the Indemnitee may be entitled under
the Charter, the By-laws, the DGCL, any other statute, insurance policy, agreement, vote of
shareholders or of directors or otherwise, both as to actions in his official capacity and as to
actions in another capacity while holding such office.

               (b) Survival. The provisions of this Agreement shall survive the death, disability,
or incapacity of the Indemnitee or the termination of the Indemnitee’s service as an officer,
director, employee or agent of the Company and shall inure to the benefit of, and be enforceable
by, the Indemnitee’s heirs, executors, guardians, administrators or assigns.

               (c) Subrogation. In the event of any payment by the Company under this Agreement, the
Company shall be subrogated to the extent thereof to all rights of recovery previously vested in
the Indemnitee, who shall cooperate with the Company, at the Company’s expense, in executing all
such instruments and taking all such other actions as shall be reasonably necessary for the Company
to enforce such right or as the Company may reasonably request.

          10. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware, without giving effect to the principles of conflict of laws
thereof.

          11. Miscellaneous.

               (a) This Agreement contains the entire agreement of the parties relating to the subject matter
hereof.

               (b) Any provision of this Agreement may be amended or waived only if such amendment or waiver
is in writing and signed, in the case of an amendment, by both parties hereto or, in the case of a
waiver, by the party against whom the waiver is to be effective. No failure or delay by either
party in exercising any right, power or privilege hereunder shall operate as a waiver hereof nor
shall any single or partial exercise thereof preclude any other or future exercise thereof or the
exercise of any other right, power or privilege.

               (c) If any provision of this Agreement or the application of any provision hereof to any
person or circumstance is held invalid, unenforceable or otherwise illegal, the remainder of this
Agreement and the application of such provision to other persons or circumstances shall not be
affected, and the provision so held to be invalid, unenforceable or otherwise illegal shall be
reformed to the extent (and only to the extent) necessary to make it enforceable, valid and legal.

               (d) Nothing contained in this Agreement is intended to create in the Indemnitee any separate
or independent right to continued employment by the Company.

8

 

               (e) This Agreement may be executed in counterparts, but all such counterparts taken together
shall constitute on and the same Agreement.

               (f) The descriptive headings of this Agreement are inserted for convenience only and do not
constitute a part of this Agreement. The use of the word “including” in this Agreement shall be by
way of example rather than limitation. The use of the word “or” in this Agreement is intended to
be conjunctive rather than disjunctive.

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

	 	 	 	 	 
	 	MAGELLAN PETROLEUM CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[NAME OF INDEMNITEE]	 
	 	 	 
	 	 	 
	 	 	 
	 

9

 

EXHIBIT 1

Indemnification Statement

	 	 	 	 	 	 	 
	STATE OF

	 	 	)	 	 	 
	 

	 	 	)	 	 	ss.
	COUNTY OF

	 	 	)	 	 	 

     I,                                         , being first duly sworn, do depose and state as follows:

     1. This Indemnification Statement is submitted pursuant to the Indemnification Agreement,
dated                                         , 200___between Magellan Petroleum Corporation, a Delaware corporation
(the “Company”), and the undersigned.

     2. I am requesting indemnification against expenses (including, without limitation, attorneys’
fees and expenses), costs, judgments, damages, fines and amounts paid in settlement, all of which
(collectively, “Liabilities”) have been or will be actually and reasonably incurred by me in
connection with an actual or threatened action, suit or proceeding to which I was or am a party or
am threatened to be made a party.

     3. With respect to all matters related to any such action, suit or proceeding, I am entitled
to be indemnified as herein contemplated pursuant to the aforesaid Indemnification Agreement.

     4. Without limiting any other rights which I have or may have, I am requesting indemnification
against Liabilities which have arisen or may arise out of

	 	 	 	 	 
	 
	 
	 	 	 	 
	 
	 
	 	 	 	 
	 
	 
	 	 	 	.
	 
	 

	 	 	 	 	 
	 	Indemnitee
 	 
	 	 	 
	 	 	 
	 	 	 
	 

Subscribed and sworn to before me, a Notary Public in and for said County and State, this ___day
of                                         , 20_.

[Seal]

My commission expires the ___day of                                         , 20 _.

 

 

EXHIBIT 2

Undertaking

	 	 	 	 	 	 	 
	STATE OF

	 	 	)	 	 	 
	 

	 	 	)	 	 	ss.
	COUNTY OF

	 	 	)	 	 	 

     I,                                         , being first duly sworn, do depose and state as follows:

     1. This Undertaking is submitted pursuant to the Indemnification Agreement, dated
                                         ___, 200___, between Magellan Petroleum Corporation, a Delaware corporation (the
“Company”), and the undersigned.

     2. I am requesting advancement of certain expenses (including, without limitation, attorneys’
fees and expenses) which I have incurred or will incur in defending a civil, criminal,
administrative or investigative action, suit or proceeding.

     3. I hereby undertake to repay this advancement of expenses if it shall ultimately be
determined that I am not entitled to be indemnified by the Company under the aforesaid
Indemnification Agreement or otherwise.

     4. The expenses for which advance is requested are, in general, all expenses related
to

	 	 	 	 	 
	 
	 
	 	 	 	 
	 
	 
	 	 	 	 
	 
	 
	 	 	 	.
	 
	 

	 	 	 	 	 
	 	Indemnitee
	 	 	 
	 	 	 
	 	 	 
	 

Subscribed and sworn to before me, a Notary Public in and for said County and State, this ___day
of                                         , 20_.

[Seal]

My commission expires the ___day of                                         , 20_.

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