Document:

EXHIBIT 10.5

 Exhibit 10.5 
 NEWPORT FEDERAL SAVINGS BANK 
 CHANGE IN CONTROL SEVERANCE COMPENSATION PLAN 
  

	A.	Purpose. 

 The purpose of the Newport Federal
Savings Bank Change in Control Severance Compensation Plan (the “Plan”) is to ensure the successful continuation of the business of Newport Federal Savings Bank (the “Bank”) and the fair and equitable treatment of the Bank’s
employees following a Change in Control (as defined below). 
  

	B.	Covered Employees. 

 Subject to paragraph C
below, any employee of the Bank with at least one year of service as of his or her termination date shall be eligible to receive a Change in Control Severance Benefit (as defined below) if, within the period beginning on the effective date of a
Change in Control and ending on the first anniversary of such date, (i) the employee’s employment with the Bank is involuntarily terminated or (ii) the employee terminates employment with the Bank voluntarily after being offered
continued employment in a position that is not a Comparable Position (as defined below). 
  

	C.	Limitations on Eligibility for Change in Control Severance Benefits. 

 1. No employee shall be eligible for a Change in Control Severance Benefit if (a) his or her employment is terminated for “Cause”, (b) he or she is offered a Comparable Position within the Bank and
declines to accept such position or (c) the employee is, at the time of termination of employment, a party to an individual employment agreement or change in control agreement with the Bank. 
 2. For purposes of this Plan, a termination of employment for “Cause” shall include termination because of the employee’s personal
dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, willful violation of any law, rule or regulation (other than traffic violations or similar offenses) or
violation of any final cease-and- desist order, or material breach of any provision of the plan. 
 3. For purposes of this Plan, a
“Comparable Position” shall mean a position that would (i) provide the employee with base compensation and benefits that are comparable in the aggregate to those provided to the employee prior to the Change in Control,
(ii) provide the employee with an opportunity for variable bonus compensation that is comparable to the opportunity provided to the employee prior to the Change in Control, (iii) be in a location that would not require the employee to
increase his or her daily one way commuting distance by more than twenty-five (25) miles as compared to the employee’s commuting distance immediately prior to the Change in Control and (iv) have job skill requirements and duties that
are comparable to the requirements and duties of the position held by the employee prior to the Change in Control. 
  

	D.	Definition of Change in Control. 

 For
purposes of this Plan, “Change in Control” means the occurrence of any one of the following events: 
  

	 	i.	 Merger: The Bank merges into or consolidates with another entity, or merges another entity into the Bank, and as a result less than a majority of the
combined voting power of 

	 	 
the resulting entity immediately after the merger or consolidation is held by persons who were members of the Bank immediately before the merger or
consolidation; 

  

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

  

	 	iii.	Sale of Assets: The Bank sells to a third party all or substantially all of its assets. 

 Notwithstanding anything in this Section D, a “Change in Control” for purposes of this Plan shall not include any corporate restructuring
transaction by the Bank in mutual or stock form, including but not limited to a mutual to stock conversion or mutual holding company reorganization or minority stock offering, provided that the Board of Directors of the Bank immediately preceding
such transaction constitutes at least a majority of the Board of Directors of the Bank after such transaction. 
  

	E.	Determination of the Change in Control Severance Benefit. 

 The Change in Control Severance Benefit payable to an eligible employee under this Plan shall be determined as follows: 
  

	 	(1)	An eligible employee who become entitled to receive a Change in Control Severance Payment under the Plan shall receive a benefit determined under the following schedule:

  

	 	(a)	The basic benefit under the Plan shall be determined as the product of (i) the employee’s years of service from his or her hire date (including partial years) through the
termination date and (ii) one (1) month of the employee’s Base Compensation (as defined below). A “year of service” shall mean each 12-month period of service following an employee’s hire date determined without regard
the number of hours worked during such period(s). 

  

	 	(b)	Notwithstanding anything in this Plan to the contrary, the minimum payment to an eligible employee under this Plan shall be one (1) month of Base Compensation and the maximum
payment to an eligible employee shall not exceed 199% of the employee’s Base Compensation. 

  

	 	(2)	The Change in Control Severance payment shall be made in a lump sum not later than five (5) business days after the date of the employee’s termination of employment.

  

	 	(3)	For purpose of determinations under this Section E, “Base Compensation” shall mean: 

  

	 	(a)	for salaried employees, the employee’s annual base salary at the rate in effect on his or her termination date or, if greater, the rate in effect on the date immediately
preceding the Change in Control. 

  

	 	(b)	 for employees whose compensation is determined in whole or in part on the basis of commission income, the employee’s base salary at termination (or, if
greater, the base salary on date immediately preceding the effective date of the Change in 

  

 2 

	 	 
Control), if any, plus the commissions earned by the employee in the twelve (12) full calendar months preceding his or her termination date (or, if
greater, the commissions earned in the twelve (12) full calendar months immediately preceding the effective date of the Change in Control). 

  

	 	(c)	for hourly employees, the employee’s total hourly wages for the twelve (12) full calendar months preceding his or her termination date or, if greater, the twelve
(12) full calendar months preceding the effective date of the Change in Control. 

  

	F.	Withholding. 

 All payments will be subject
to customary withholding for federal, state and local tax purposes. 
  

	G.	Parachute Payment. 

 Notwithstanding anything
in this Plan to the contrary, if a benefit to a employee who is a “Disqualified Individual” shall be in an amount which includes an “Excess Parachute Payment” taking into account payments under this Plan and otherwise, the
benefit under this Plan to that employee shall be reduced to the maximum amount which does not include an Excess Parachute Payment. The terms “Disqualified Individual” and “Excess Parachute Payment” shall have the same meanings
as under Section 280G of the Internal Revenue Code of 1986, as amended, or any successor provision thereto. 
  

	H.	Adoption by Subsidiaries. 

 Upon approval by
the Board of Directors of the Bank, this Plan may be adopted by any “Subsidiary” of the Bank. Upon such adoption, the Subsidiary shall become an Employer hereunder and the provisions of the Plan shall be fully applicable to the Employees
of that Subsidiary. The term “Subsidiary” means any corporation in which the Bank, directly or indirectly, holds a majority of the voting power of its outstanding shares of capital stock. 
  

	I.	Administration. 

 The Plan is administered by
the Board of Directors of the Bank, which shall have the discretion to interpret the terms of the Plan and to make all determinations about eligibility and payment of benefits. All decisions of the Board, any action taken by the Board with respect
to the Plan and within the powers granted to the Board under the Plan, and any interpretation by the Board of any term or condition of the Plan, are conclusive and binding on all persons, and will be given the maximum possible deference allowed by
law. The Board may delegate and reallocate any authority and responsibility with respect to the Plan. 
  

	J.	Source of Payments. 

 All amounts payable
under the Plan will be paid in cash from the general funds of the Bank; no separate fund will be established under the Plan; and the Plan will have no assets. 
  

	K.	Inalienability. 

 In no event may any
Employee sell, transfer, anticipate, assign or otherwise dispose of any right or interest under the Plan. At no time will any such right or interest be subject to the claims of creditors, nor liable to attachment, execution or other legal process.

  

 3 

	L.	Governing Law. 

 The provisions of the Plan
will be construed, administered and enforced in accordance with the laws of the State of Rhode Island, except to the extent that federal law applies. 
  

	M.	Severability. 

 If any provision of the Plan
is held invalid or unenforceable, its invalidity or unenforceability will not affect any other provision of the Plan, and the Plan will be construed and enforced as if such provision had not been included. 
  

	N.	No Employment Rights. 

 Neither the
establishment nor the terms of this Plan shall be held or construed to confer upon any employee the right to a continuation of employment by the Bank, nor constitute a contract of employment, express or implied. The Bank reserves the right to
dismiss or otherwise deal with any employee to the same extent and on the same basis as though this Plan had not been adopted. Nothing in this Plan is intended to alter the at-will status of the Bank’s employees, it being understood that,
except to the extent otherwise expressly set forth to the contrary in an individual employment-related agreement, the employment of any employee may be terminated at any time by either the Bank or the employee with or without cause. 
  

	O.	Amendment and Termination. 

 The Plan may be
terminated or amended in any respect by resolution adopted by a majority of the Board of Directors of the Bank, unless a Change in Control has previously occurred. If a Change in Control occurs, the Plan no longer shall be subject to amendment,
change, substitution, deletion, revocation or termination in any respect whatsoever. The form of any proper amendment or termination of the Plan shall be a written instrument signed by a duly authorized officer or officers of the Bank, certifying
that the amendment or termination has been approved by the Board of Directors. A proper amendment of the Plan automatically shall effect a corresponding amendment to each Participant’s rights hereunder. A proper termination of the Plan
automatically shall effect a termination of all employees’ rights and benefits hereunder. 
 Having been adopted by its Board of
Directors, this Plan is executed by its duly authorized officer and effective October 14, 2005. 
  

 4 

 Proposed 
 Amendment to the 
 Newport Federal Savings Bank 
 Change in Control Severance Compensation Plan 
 WHEREAS, in connection with the merger of Newport Federal Savings Bank (the “Bank”) and Westerly Savings Bank, the Board of Directors of the Bank adopted the Newport Federal Savings Bank Change in Control Severance
Compensation Plan (the “Severance Plan”); and 
 WHEREAS, in connection with the mutual to stock conversion of the Bank, the
Board of Directors of the Bank wishes to amend the Severance Plan to make certain ministerial changes and to include eligible employees of Newport Bancorp, Inc., the holding company formed in connection with the conversion, as participants in the
Severance Plan; and 
 WHEREAS, Paragraph O of the Severance Plan provides that the plan may be amended by a majority of the Board of
Directors prior to a change in control. 
 NOW, THEREFORE, the Severance Plan is amended as follows: 
 FIRST CHANGE 
 Effective
                        , 2006, the Plan is hereby amended by adding the following new Section P. 
  

	“P.	Required Provisions. 

  

	 	(1)	In the event any of the foregoing provisions of this Section P are in conflict with the terms of this Plan, this Section P shall prevail. 

  

	 	(2)	The Bank’s board of directors may terminate an employee’s employment at any time, but any termination by the Bank, other than Termination for Cause, shall not prejudice
employee’s right to compensation or other benefits under this Plan. An employee shall not have the right to receive compensation or other benefits for any period after Termination for Cause. 

  

	 	(3)	If an employee is suspended from office and/or temporarily prohibited from participating in the conduct of the Bank’s affairs by a notice served under Section 8(e)(3) or
8(g)(1) of the Federal Deposit Insurance Act, 12 U.S.C. §1818(e)(3) or (g)(1); the Bank’s obligations under this Plan shall be suspended as of the date of service, unless stayed by appropriate proceedings. If the charges in the notice are
dismissed, the Bank may in its discretion: (i) pay the employee 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.

  

	 	(4)	If an employee is removed and/or permanently prohibited from participating in the conduct of the Bank’s affairs by an order issued under Section 8(e)(4) or 8(g)(1) of the
Federal Deposit Insurance Act, 12 U.S.C. §1818(e)(4) or (g)(1), all obligations of the Bank under this Plan shall terminate as of the effective date of the order, but vested rights of the contracting parties shall not be affected.

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

  

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

  

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

 SECOND CHANGE 
 Effective
                        , 2006, the Plan shall be amended to include employees of Newport Bancorp, Inc. 
 THIRD CHANGE 
 Effective
                        , 2006, the Section D of the Plan shall be deleted in its entirety and replaced with the following
new Section D. 
  

	“D.	Definition of a Change in Control. 

 For
purposes of this Plan, “Change in Control” means the occurrence of any one of the following events: 
  

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

  

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

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

  

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

 Notwithstanding anything in this Section D, a “Change in Control” for purposes of this Plan shall not include any corporate restructuring transaction by the Bank in mutual or stock form, including but not
limited to a mutual to stock conversion. 
 FOURTH CHANGE 
 Effective
                        , 2006, Section J will be deleted in its entirety and replaced with the following new Section J:

  

	“J.	Source of Payments. 

 Unless otherwise determined by the
Board of Directors of the Bank, all payments and benefits provided in this Plan shall be paid or provided solely by the Bank. Notwithstanding anything in this Plan to the contrary, no provision of this Plan shall be construed so as to result in the
duplication of any payment or benefit. Unless otherwise determined by the Board of Directors of the Bank, the Company’s sole obligation under this Plan shall be to unconditionally guarantee the payment and provision of all amounts and benefits
due hereunder, if such amounts and benefits due from the Bank are not timely paid or provided by the Bank, such amounts and benefits shall be paid or provided by the Company.” 
 IN WITNESS WHEREOF, the Bank has caused this amendment to the Plan to be executed by its duly authorized officer on
     day of                     , 2006. 
  

			
	NEWPORT FEDERAL SAVINGS BANK
		
	 By:
	 	  

		 	On behalf of the Board of DirectorsEXHIBIT 10.6

 Exhibit 10.6: Form of Supplemental Executive Retirement Agreements between Newport Federal Savings Bank and Carol R.
Silven, Ray D. Gilmore, II, Kevin M. McCarthy and Bruce A. Walsh 
 Newport Federal Savings Bank entered into supplemental executive retirement agreements
with Messrs. Gilmore, McCarthy and Walsh and Ms. Silven which are substantially identical in all material respects (except as noted below) as the attached Form of Supplemental Executive Retirement Agreement. 
 Parties to Supplemental Executive Retirement Agreement: 
 Newport Federal Savings Bank and Carol R. Silven (1) 
 Newport Federal Savings Bank and Ray D. Gilmore, II (2) 
 Newport Federal Savings Bank and Kevin M. McCarthy (3) 
 Newport Federal Savings Bank and Bruce A. Walsh (4) 
  

	 	(1)	Ms. Silven’s Supplemental Executive Retirement Agreement is substantially identical to Exhibit 10.6 except as to the amount of the Supplemental Annual Pension Benefit,
which is $16,150.00. 

  

	 	(2)	Mr. Gilmore’s Supplemental Executive Retirement Agreement is substantially identical to Exhibit 10.6 except as to the amount of the Supplemental Annual Pension Benefit,
which is $21,000.00. 

  

	 	(3)	Mr. McCarthy’s Supplemental Executive Retirement Agreement is substantially identical to Exhibit 10.6 except as to the amount of the Supplemental Annual Pension Benefit,
which is $30,500.00. 

  

	 	(4)	Mr. Walsh’s Supplemental Executive Retirement Agreement is substantially identical to Exhibit 10.6 except as to the amount of the Supplemental Annual Pension Benefit,
which is $17,500.00. 

 Exhibit 10.6 
 FORM OF 
 SUPPLEMENTAL EXECUTIVE RETIREMENT AGREEMENT 
 THIS AGREEMENT, made and entered into this ___ day of _____________, 200_ (hereinafter the “Effective Date”), by Newport Federal Savings
Bank, (hereinafter referred to as the “Bank”), a bank organized and existing under the laws of Rhode Island, and _______________________ (hereinafter referred to as the “Employee”). 
 WHEREAS, the Employee has performed his/her duties as President and Chief Executive Officer of the Bank in an efficient and capable manner; and

 WHEREAS, the Bank is desirous of retaining the services of the Employee and rewarding him/her for his/her performance and his/her
career with the Bank; and 
 WHEREAS, to retain the services of the Employee and to reward him/her for his/her performance and career
with the Bank, the Board of Directors has agreed to provide the Employee with a supplemental retirement benefit as described in this Agreement. 
 NOW, THEREFORE, for the value received and in consideration of the mutual covenants contained herein, the parties agree as follows: 
  

	1.	Normal Retirement Supplemental Pension 

 Upon
the Employee’s retirement on or after attaining age sixty-five (65) (hereafter “Normal Retirement Age”), the Bank shall pay the Employee a supplemental annual pension benefit equal to $______ payable in equal monthly
installments, commencing with the first month after the Employee’s retirement, and continuing for a period of
fifteen (15) years. 

	2.	Early Retirement or Termination 

 If the
Employee retires or his/her employment with the Bank is otherwise terminated without cause after attaining age 60 and prior to attaining Normal Retirement Age, and the Employee has completed at least ten (10) years of service, then the Bank
will pay the Employee a supplemental pension payable in equal monthly installments, commencing with the first month after such early retirement or termination, and continuing for 15 years, in an amount as indicated on the following schedule:

  

				
	 Age at Early Retirement or
 Termination
	  	 % of Normal Retirement
 Pension
	 
	 Less than 60
	  	0	%
	 60
	  	10	%
	 61
	  	15	%
	 62
	  	30	%
	 63
	  	50	%
	 64
	  	75	%

 Should the Employee be terminated for cause or should be engaged in competitive activity, all supplemental annual
pension benefits under the Agreement shall be forfeited. 
 Termination for cause shall mean the Employee’s deliberate dishonesty with
respect to the Bank or any subsidiary or affiliate thereof; conviction of a crime involving moral turpitude; or gross and willful failure to perform [other than on account of a medically determinable disability which renders the Employee incapable
of performing such services] a substantial portion of the Employee’s duties and responsibilities as an officer
of the Bank, which failure continues for more than thirty days after written notice given to the Employee pursuant to a two-thirds vote of all of the members of the Board then in office, such vote to set forth in reasonable detail the nature of such
failure. 
  

 2 

 Competitive activity by the employee shall mean that during the Employee’s employment by the Bank or
within two (2) years following his or her termination from service, the Employee directly or indirectly: 
  

	 	(i)	engages, as an individual proprietor, partner, stockholder, officer, employee, director, consultant, joint venturer, investor, lender, or in any other capacity whatsoever (except as
the holder of less than two percent (2%) of the total outstanding stock of a publicly-held Bank), in any business concurrently being carried out by the Bank anywhere within the Bank’s primary market areas at the time of such activity by
the Employee; or 

  

	 	(ii)	recruits, solicits, or induces, or attempts to induce, any employee or employees of the Bank to terminate their employment with, or otherwise cease any relationship with the Bank;
or solicits, diverts, takes away, or attempts to divert or take away, any business of any of the clients, customers or accounts, or prospective clients, customers or accounts, of the Bank which were contacted, solicited or served by the Employee, or
were directly or indirectly under the Employee’s responsibility, while the Employee was employed by the Bank. 

  

	 	(iii)	solicits, diverts, takes away, or attempts to divert or take away, any business of any of the clients, customers or accounts, or prospective clients, customers or accounts of the
Bank which were contacted, solicited or served by the Employee or were directly or indirectly under the Employee’s responsibility, while the Employee was employed by the Bank. 

  

	3.	Death or Disability 

 a. Upon the death of
the Employee while still actively employed, the Employee’s designated beneficiary shall receive an annual survivor benefit equal to the benefits as outlined in Sections 1 or 2, payable in equal monthly installments, commencing with the first
month after such death, and continuing for a period of fifteen (15) years. 
  

 3 

 b. Upon the death of the Employee while receiving any supplemental pension benefit payments as provided
in this Agreement, the Employee’s designated beneficiary shall receive the remaining equal monthly payments which would have been due the Employee. 
 c. If the Employee ceases employment because of permanent disability, the Employee will be treated as actively employed, for purposes of this Agreement, while such disability continues. In such event, payments
hereunder will commence upon the Employee’s attainment of Normal Retirement Age in accordance with Section 1 of this Agreement, or as described under Section 2 of the Agreement. The Employee will be considered permanently disabled
when the Employee is no longer capable of performing the material aspects of his or her employment duties for the Bank as a result of physical and/or mental impairment. The Employee shall be considered to be no longer permanently disabled at such
time as he or she returns to work in a position with responsibilities comparable to those inherent in the position in which he or she was employed on the date he or she became permanently disabled. 
 In the event there is a disagreement as to whether the Employee is permanently disabled, the Bank and the Employee (or his or her physical
representative) each shall select a physician. If the physicians are in disagreement, they shall select a third physician. A majority opinion of the three physicians as to disability shall be binding on all of the parties hereto. 
 d. If the Employee shall have failed to make an effective designation of beneficiary in writing, or if the individual or individuals so designated shall
die prior to receiving all payments required to be made to them hereunder and there is no designated alternate beneficiary, then in such event the remaining payments shall be made first to the Employee’s surviving spouse, second the
Employee’s surviving children, equally per stirpes if there is no surviving spouse, and finally to the estate of the Employee if there are neither a surviving spouse nor surviving children. The Employee shall have the right at all times to
revoke or change his/her beneficiary designation by completing a new designation in writing. 
  

 4 

	4.	Assignment 

 Except as otherwise provided
herein, it is understood that neither the Employee, nor any person designated by him/her pursuant to this Agreement, shall have any right to commute, sell, assign, transfer or otherwise convey the right to receive payments to be made hereunder,
which payments and the right thereto are expressly declared to be non-assignable and non-transferable. If such assignment or transfer is attempted, the Bank may disregard it and continue to discharge its obligations hereunder as though such
assignment or transfer were not attempted. 
  

	5.	Independent Arrangement 

 The benefits
payable under this Agreement shall be independent of, and in addition to, any other agreement which may exist from time to time between the parties hereto, or any other compensation payable by the Bank to the Employee. This Agreement shall not be
deemed to constitute a contract of employment between the parties hereto, nor shall any provisions hereof restrict the right of the Bank to discharge the Employee or restrict the right of the Employee to terminate his/her employment. 
  

	6.	Non-Trust or Fiduciary Obligation 

 The
rights of the Employee under this Agreement (including the right to payment from the Bank) and of any beneficiary of the Employee or of any other person who may acquire such rights shall be solely those of an unsecured creditor of the Bank. The
Bank’s obligation to pay the supplemental pension provided for under this Agreement is an unfunded promise by the Bank. 
 The Bank may,
but need not, set aside or invest funds, to meet its liability under this Agreement. Title to and beneficiary ownership of any assets, whether cash, investments, life insurance, or otherwise, which the Bank may purchase or designate to pay the
benefits described hereunder shall at all times remain in the Bank, and the Employee shall have no property interest whatsoever in any of these assets or any other assets of the Bank. 
  

 5 

 Any insurance policy on the life of the Employee or any other asset acquired by the Bank in connection
with the obligations assumed by it hereunder shall not be deemed to be held under any trust for the benefit of the Employee or his/her beneficiaries or to be security for the performance of the obligations of the Bank, but shall be, and remain, a
general, unpledged, unrestricted asset of the Bank. 
 Nothing contained in the Agreement and no action taken pursuant to the provisions of
the Agreement shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Bank and the Employee or his/her beneficiaries. Any funds which may be invested under this Agreement shall continue for all purposes to
be a part of the general funds of the Bank, and no person, other than the Bank, shall, by virtue of the provisions of this Agreement, have any interest in such funds. 
  

	7.	Change in Control 

 a. If the Employee’s
employment with the Bank is involuntarily terminated within two years after a change in control of the Bank, payment hereunder will commence immediately in monthly amounts equal to the amount which would have been payable as if the Employee were
employed until Normal Retirement Age. 
 b. Change in control shall be deemed to have occurred at such time as (1) the Bank is converted
from a mutual savings bank to an entity which issues stock and is owned by its shareholders, (2) individuals who, as of the beginning of any twenty-four (24) month period, constitute Board of Directors (“Incumbent Board”) cease
for any reason to constitute at least a majority of the Board of Directors, provided that any individual becoming a Director subsequent to the beginning of such period whose election or nomination for election was approved by a vote of at least a
majority of the Directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, (3) a merger, consolidation, acquisition or other corporate transaction occurs that has the

  

 6 

 
effect of transferring a controlling influence over management of the Bank to a natural person, corporate or other business entity other than its current
management or Directors, or (4) a completed liquidation or dissolution of the Bank or sale or other disposition of all or substantially all of the assets of the Bank is consummated, other than to individuals or entities who were the beneficial
owners of the Bank immediately prior to such sale or disposition. 
  

	8.	Arbitration 

 Any controversy or claim
arising out of or relating to the Agreement, or the breach thereof, or any failure to agree where agreement of the parties is necessary pursuant hereto, including the determination of the scope of this agreement to arbitrate, shall be resolved by
the following procedures: 
  

	 	(a)	The parties agree to submit any dispute to final and binding arbitration administered by the American Arbitration Association (the “AAA”), pursuant to the Commercial
Arbitration Rules of the AAA as in effect at the time of submission. The arbitration shall be held in Providence, Rhode Island before a single neutral, independent, and impartial arbitrator (the “Arbitrator”). 

  

	 	(b)	 Unless the parties have agreed upon the selection of the Arbitrator before then, the AAA shall appoint the Arbitrator within thirty (30) days after the
submission to AAA for binding arbitration. The arbitration hearings shall commence within fifteen (15) days after the selection of the Arbitrator. Each party shall be limited to two pre-hearing depositions each lasting no longer than two
(2) hours. The parties shall exchange documents to be used at the hearing no later than ten (10) days prior to the hearing date. Each party shall have no longer than three (3) hours to present its position, and the entire proceedings
before the Arbitrator shall be on no more than two (2) hearing days within a two week period. The award shall be made no more than ten (10) days following the close of the proceeding. The Arbitrator’s award shall not include
consequential, exemplary, or punitive damages. The Arbitrator’s award shall be a final and binding determination of the dispute and shall be fully enforceable in 

  

 7 

	 	 
any court of competent jurisdiction. Except in a proceeding to enforce the results of the arbitration, neither party nor the Arbitrator may disclose the
existence, content, or results of any arbitration hereunder without the prior written consent of both parties. 

  

	9.	Taxes 

 a. The Bank shall have the right to
deduct from all amounts to be paid by the Bank to the Employee under the Agreement any taxes required by law to be withheld. 
 b. The
Employee should consult his/her own legal and tax advisors concerning personal tax consequences of being eligible for, and receiving benefit payments under, the Agreement. 
  

	10.	Miscellaneous Provisions 

 a. This Agreement
shall be binding upon and inure to the benefit of any successor of the Bank and any such successor shall be deemed substituted for the Bank under the terms of this Agreement. 
 b. This instrument contains the entire Agreement of the parties. It may be amended only by a writing signed by both of the parties hereto. 
 c. This Agreement shall be governed and construed in accordance with the law of the State of Rhode Island. 
 d. The benefits provided by the Bank to the Employee pursuant to this Agreement are in the nature of a fringe benefit and shall in no event be construed
to affect or limit the Employee’s current or prospective salary increases, cash bonuses or profit-sharing distributions or credits or his right to participate in or be covered by any qualified or 

  

 8 

 
non-qualified pension, profit-sharing, group, bonus or other supplemental compensation or fringe benefit plan. 
 e. The Plan Administrator shall be the Chairman of the Board or his/her designee. In the event a dispute arises over benefits payable under this
Agreement and benefits are not paid to the Employee (or to his estate in the case of the Employee’s death) and such claimants feel they are entitled to receive such benefits, then a written claim must be made to the Plan Administrator within
sixty (60) days from the date payments are refused. The Plan Administrator shall review the written claim and if the claim is denied, in whole or in part, it shall provide in writing within sixty (60) days of receipt of such claim its
specific reasons for such denial, reference to the provisions of the Agreement upon which the denial is based and any additional material or information necessary to perfect the claim. Such written notice shall further indicate the additional steps
to be taken by claimants if a further review of the claim denial is desired. A claim shall be deemed to have been denied if the Plan Administrator fails to take any action within the aforesaid sixty-day period. 
 If claimants desire a second review they shall notify the Plan Administrator in writing within ninety (90) days of the first claim denial. Claimants
may review this Agreement or any documents relating thereto and submit any written issues and comments they may feel appropriate. In its sole discretion, the Plan Administrator shall then review the second claim and provide a written decision within
sixty (60) days of receipt of such claim. This decision shall likewise state the specific reasons for the decision and shall include reference to specific provisions of this Agreement upon which the decision is based. 
 IN WITNESS WHEREOF, the parties have hereunto set their hands and seals, the Bank by it duly authorized representative, on the day and year first
above written. 
  

			
	______________________________________	 	(L.S.)
	Employee	 	
		
	______________________________________	 	(L.S.)
	[Chairman, Board of Directors]	 	

  

 9 

 BENEFICIARY STATEMENT 
 I, _______________________, hereby name as a beneficiary under the Supplemental Executive Retirement Agreement dated _______________________, 200_ as
follows: 
  

					
	Primary:	  	_____________________________________________	  	
			
	 Secondary:
	  	_____________________________________________	  	

  

			
		
	Signed:	 	________________________________
		
	 Dated:
	 	________________________________

 RESOLUTION OF THE 
 PERSONNEL COMMITTEE BOARD OF DIRECTORS OF 
 NEWPORT FEDERAL SAVINGS BANK 
 WHEREAS, the Board of Directors of Newport Federal Savings Bank (the “Bank”) maintains the Supplemental Executive Retirement Agreements
and the Supplemental Director Retirement Agreements for certain executives and outside directors of the Bank (collectively the “Agreements”) for the purpose of providing these individuals with a supplemental retirement benefit upon
attainment of Normal Retirement Age (as such term is defined in each of the Agreements); and 
 WHEREAS, this Committee wishes to
amend the Agreement to revise the definition of a Change in Control. 
 NOW, THEREFORE, BE IT RESOLVED, that the Agreements shall be,
and hereby are, amended as follows: 
 First Change 
 Effective January 1, 2006, Section 7(b) of the Supplemental Executive Retirement Agreement and Section 7(b) of the Supplemental Director Retirement Agreement shall each be deleted and replaced with the
following new Section 7(b): 
 a. A Change in Control shall be deemed to have occurred upon the earlier of the following events:

  

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

  

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

  

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

 For purposes of this provision “Company” shall mean any holding company of the Bank.
Notwithstanding anything in this Agreement, in no event shall a mutual to stock conversion of the Bank constitute a “Change in Control” for purposes of this Agreement. 
 Second Change 
 Effective January 1, 2006, the first sentence in
Section 7(a) of the Agreement shall be amended to refer to a Change in Control of the Company instead of a Change in Control of the Bank. 
 CERTIFICATION 
 I, William R. Harvey, Corporate Secretary of Newport Federal Savings Bank certify that the above resolution
was unanimously adopted by the Personnel Committee of the Board of Directors of Newport Federal Savings Bank at a duly held meeting of the Committee on February 15, 2006. 
  

	
	
	 /s/ William R. Harvey

	Corporate Secretary

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}]]