Document:

First Amendment to Loan Agreement

 Exhibit 4.2 
 FIRST AMENDMENT TO LOAN AGREEMENT 
 This FIRST AMENDMENT TO LOAN
AGREEMENT (this “Amendment”) dated as of March 12, 2012, by and among GREAT WOLF LODGE OF THE CAROLINAS, LLC, a Delaware limited liability company, having an office at c/o Great Wolf Resorts, Inc., 525 Junction Road,
Suite 6000 South, Madison, Wisconsin 53717 (“Borrower”), CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK, a banking corporation organized under the laws of the Republic of France, having an office at 1301 Avenue of the
Americas, New York, New York 10019 (“CA-CIB”), and DEUTSCHE BANK TRUST COMPANY AMERICAS, having an office at NYC 60-1008, 60 Wall Street, 10th Floor, New York, New York 10025 (“DBTCA”; CA-CIB and DBTCA, each,
together with its successors and assigns in its capacity as a lender, including any Assignees, a “Lender” and collectively “Lenders”), and CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK, a banking
corporation organized under the laws of the Republic of France, having an office at 1301 Avenue of the Americas, New York, New York 10019, in its capacity as agent for Lenders (together with its successors and assigns in such capacity as agent for
Lenders, “Agent”). 
 W I T N E
S S E T H : 
 WHEREAS, Borrower, Agent and Lenders are parties to that certain
Loan Agreement dated as of July 15, 2011 (as the same may from time to time be amended, restated, supplemented, extended or otherwise modified, the “Loan Agreement”; all capitalized terms used but not defined herein shall have
the meaning ascribed to them in the Loan Agreement), pursuant to which Lenders agreed to make, and Agent agreed to administer, a loan to Borrower in the original principal amount of $56,000,000 (the “Loan”), upon the terms and
conditions contained in the Loan Agreement; 
 WHEREAS, Borrower has advised Agent that it anticipates that (a) K-9
Acquisition, Inc. (“Merger Sub”), a Delaware corporation and a wholly-owned and controlled subsidiary of K-9 Holdings, Inc. (“Holdings”), a Delaware corporation and a wholly-owned and controlled affiliate of Apollo
Management VII, L.P. and/or funds or investment vehicles managed thereby (collectively, “Fund VII”), intends to launch a tender offer (the “Equity Tender Offer”) for all of the common equity interests of GWRI,
(b) following the consummation of the Equity Tender Offer, Merger Sub intends to consummate a merger (the “Merger”) with and into GWRI, with GWRI being the surviving entity and a wholly-owned subsidiary of Holdings upon
completion of the Merger, and (c) upon the completion of the Merger, GWRI will cease to be a Public Company (the foregoing (a), (b) and (c), collectively, the “Transaction”; the Transaction will be deemed to include any
acquisition of common equity interests in GWRI in connection with the Equity Tender Offer but prior to consummation of the Merger); 
 WHEREAS, Borrower has requested that Agent and Lenders consent to the Transaction; and 

 WHEREAS, in connection with the Transaction, Borrower, Agent and Lenders desire to
amend the Loan Agreement as set forth herein; 
 NOW, THEREFORE, in consideration of the premises and of the mutual
covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, Borrower, Agent and Lenders hereby agree as follows: 

SECTION 1. Amendments. 
 (a) Additional Definitions. The following definitions are added to Section 1.1 of the Loan Agreement: 

“Continuing Directors” means, as of any date of determination, any member of the Board of Directors of
GWRI who: 
 (a) was a member of such Board of Directors on the Transaction Closing Date; or 

(b) was nominated for election or elected to such Board of Directors with the approval of a majority of the Continuing
Directors who were members of such Board of Directors at the time of such nomination or election. 

“Equity Tender Offer” has the meaning set forth in the recitals of the First Amendment. 

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

“First Amendment” means that certain First Amendment to Loan Agreement, dated as of the First Amendment
Date, among Borrower, Agent and Lenders. 
 “First Amendment Date” means March 12, 2012.

 “First Amendment Fee Letter” means that certain letter agreement, dated as of the First
Amendment Date, between Borrower and Agent regarding the payment of certain fees by Borrower. 

“Management Group” means the group consisting of the directors, executive officers and other management
personnel of GWRI or any direct or indirect parent of GWRI, as the case may be, on the date of consummation of the Merger together with (a) any new directors whose election by such boards of directors or whose nomination for election by the
shareholders of GWRI or any direct or indirect parent of GWRI, as applicable, was approved by a vote of a majority of the directors of GWRI or any direct or indirect parent of GWRI, as applicable, then still in office who were either directors on
the date of consummation of the Merger or whose election or nomination was previously so approved and (b) executive officers and other management personnel of GWRI or 

  
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any direct or indirect parent of GWRI, as applicable, hired at a time when the directors on the date of consummation of the Merger together with the directors so approved constituted a majority
of the directors of GWRI or any direct or indirect parent of GWRI, as applicable. 
 “Merger”
has the meaning set forth in the recitals of the First Amendment. 
 “Merger Agreement” means
the written merger agreement or agreements effecting the Merger, as amended, supplemented, amended and restated or otherwise modified in a manner not materially adverse to Agent and Lenders. 

“Merger Agreement Signing Date” means the date the Merger Agreement is executed by all parties.

 “Permitted Holders” means, at any time, each of (i) Sponsor, (ii) the Management
Group (with respect to not more than ten percent (10%) of the voting stock of GWRI, in aggregate directly or indirectly), (iii) any Person that has no material assets other than the capital stock of GWRI or any direct or indirect parent of
GWRI, and, directly or indirectly, holds or acquires one hundred percent (100%) of the total voting power of the voting stock of GWRI, and of which the other Permitted Holders specified in clauses (i) and (ii) above hold
in aggregate more than fifty percent (50%) of the total voting power of the voting stock thereof and (iv) any group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, or any successor provision) the
members of which include any of the Permitted Holders specified in clauses (i) and (ii) above and that, directly or indirectly, hold or acquire beneficial ownership of the voting stock of GWRI or any direct or indirect parent
of GWRI (a “Permitted Holder Group”), so long as (1) each member of the Permitted Holder Group has voting rights proportional to the percentage of ownership interests held or acquired by such member and (2) Permitted
Holders specified in clauses (i) and (ii) above beneficially own in aggregate more than fifty percent (50%) on a fully diluted basis of the voting stock held by the Permitted Holder Group. 

“Sponsor” means the Apollo Management, L.P. and any of its Affiliates. 

“Transaction” has the meaning set forth in the recitals of the First Amendment. 

“Transaction Closing Date” means the earlier of the date of occurrence of the “Acceptance Time”
(as defined in the Merger Agreement) pursuant to the Equity Tender Offer or the date of consummation of the Merger. 
 (b)
Deleted Definitions. The definitions of the terms “Extension Fee” and “Extension Term” are deleted from Section 1.1 of the Loan Agreement. 

(c) Assumed Debt Service. The proviso at the end of the definition of the term “Assumed Debt Service” in
Section 1.1 of the Loan Agreement is deleted. 

  
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 (d) GWRI Change of Control. The definition of the term “GWRI Change of
Control” in Section 1.1 of the Loan Agreement is amended and restated in its entirety to read as follows: 
 “GWRI Change of Control” means the occurrence of any of the following: 
 (a) the direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of
the properties or assets of GWRI and its subsidiaries taken as a whole to any Person (including any “person” (as that term is used in Section 13(d)(3) of the Exchange Act)) other than any of the Permitted Holders; 

(b) the adoption of a plan relating to the liquidation or dissolution of GWRI; 

(c) the consummation of any transaction (including, without limitation, any merger or consolidation), the result of which
is that the Permitted Holders are not the beneficial owner, directly or indirectly, in aggregate, of more than fifty percent (50%) of the voting stock of GWRI, measured by voting power rather than number of shares; or 

(d) the first day on which a majority of the members of the Board of Directors of GWRI are not Continuing Directors.

 Notwithstanding the foregoing: (A) the term “GWRI Change of Control” shall not include a merger or
consolidation of GWRI with or the sale, assignment, conveyance, transfer, lease or other disposition of all or substantially all of GWRI’s assets to, an Affiliate incorporated or organized solely for the purpose of reincorporating or
reorganizing GWRI in another jurisdiction and/or for the sole purpose of forming or collapsing a holding company structure; and (B) a “Person” or “group” shall not be deemed to have beneficial ownership of securities subject
to a stock purchase agreement, merger agreement or similar agreement (or voting or option agreement related thereto) until the consummation of the transactions contemplated by such agreement. 

(e) Loan Fee Letter. The definition of the term “Loan Fee Letter” in Section 1.1 of the Loan Agreement is
amended to include the First Amendment Fee Letter. 
 (f) Maturity Date. The definition of the term “Maturity
Date” in Section 1.1 of the Loan Agreement is amended and restated in its entirety to read as follows: 
 “Maturity Date” means December 31, 2016, or such earlier date as the entire principal amount of the Loan shall become due and payable by acceleration or otherwise. 

  
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 (g) Minimum Debt Service Coverage Ratio. The definition of the term “Minimum
Debt Service Coverage Ratio” in Section 1.1 of the Loan Agreement is amended and restated in its entirety to read as follows: 
 “Minimum Debt Service Coverage Ratio” shall be satisfied, with respect to any Testing Determination Date (a) on or before the first anniversary of the Closing Date, if the Debt
Service Coverage Ratio as of such Testing Determination Date is not less than 1.15:1.00, (b) on or before the second anniversary of the Closing Date but after the first anniversary of the Closing Date, if the Debt Service Coverage Ratio as of
such Testing Determination Date is not less than 1.25:1.00 and the Assumed Debt Service Coverage Ratio as of such Testing Determination Date is not less than 1.20:1.00 or (c) after the second anniversary of the Closing Date, if the Assumed Debt
Service Coverage Ratio is not less than 1.30:1.00. 
 (h) Spread Maintenance.
Section 2.4(c) of the Loan Agreement is amended as follows: (i) in the 4th and 5th
lines thereof, the phrase “twenty-four (24) months after the Closing Date” is amended to “twenty-four (24) months after the Transaction Closing Date”; and (ii) in the 13th, 14th and 15th lines thereof, the phrase “Closing Date” is amended to “Transaction Closing Date” in each of the
three (3) places where it appears. 
 (i) Interest Rate Protection Agreement. The preamble to
Section 2.6(a) of the Loan Agreement is amended and restated in its entirety to read as follows: 

(a) Interest Rate Protection Agreement. On or before the fifth Business Day following the Transaction Closing Date,
Borrower shall enter into and satisfy all conditions precedent to the effectiveness of either (i) an amendment to the then-existing Interest Rate Protection Agreement or (ii) an additional Interest Rate Protection Agreement, such that the
existing Interest Rate Protection Agreement, as amended, or the combination of the existing Interest Rate Protection Agreement and the additional Interest Rate Protection Agreement, shall have a term for the balance of the Term (i.e., from the
Transaction Closing Date through December 31, 2016) and shall otherwise satisfy the requirements of clauses (i) through (vi) below, and shall thereafter maintain such Interest Rate Protection Agreement(s) in full force
and effect for the balance of the Term. 
 (j) Extension Option. Section 2.20 of the Loan
Agreement is deleted in its entirety. The reference in the 4th line of Section 10.3 of the Loan Agreement to “Extension Fee” is deleted and replaced with “fees pursuant to the First Amendment Fee Letter”. 

(k) Appraisals. In the 5th line of Section 7.5 of the Loan Agreement, the phrase “single time” is amended to “two
(2) times”. 
 (l) Transfers. Section 7.16 of the Loan Agreement is amended as follows: 

(i) Clause (ii)(E) of Section 7.16(e) of the Loan Agreement is amended and restated in its entirety to
read as follows: 
 “(E) GWRI shall be the surviving entity and no GWRI Change of Control shall
occur;”. 

  
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 (ii) In the third line of clause (iv) of
Section 7.16(e), the phrase “GWRI Change in Control” is amended to “GWRI Change of Control”. 
 (iii) In the second line of Section 7.16(f) of the Loan Agreement, the word “control” is amended to “wholly own and control”. 

(m) Continued Patriot Act Compliance. Section 11.25 of the Loan Agreement is amended by adding immediately after the
first sentence thereof the following sentence: 
 “Thereafter, Borrower shall, and shall cause each of its Affiliates to,
provide, to the extent commercially reasonable, such information and take such actions as are reasonably requested by Agent or any Lender in order to assist Agent and Lenders in maintaining compliance with the Patriot Act.” 

(n) Indemnity for Transaction. In the 12th line of Section 11.1 of the Loan Agreement, after the phrase “any Interest Rate Protection
Agreement,” the phrase “or the Transaction” is inserted. 
 SECTION 2. Notices Regarding Transaction.
Borrower shall promptly notify Agent of the occurrence of the Merger Agreement Signing Date (and deliver to Agent a copy, certified by Borrower to be true and complete, of the executed Merger Agreement) and of the occurrence of the Transaction
Closing Date. 
 SECTION 3. Consent to Transaction. Agent and the Lenders hereby consent to the Transaction, provided
that (a) the representations and warranties set forth in Section 7 hereof and all representations and warranties of Borrower and Guarantor in the Loan Documents as amended by this Amendment (as if remade as of the Transaction
Closing Date except to the extent such representations and warranties relate solely to an earlier date) shall be true and correct in all material respects as of the Transaction Closing Date, (b) no Event of Default shall have occurred and be
continuing as of the Transaction Closing Date, (c) as of the Transaction Closing Date, there shall not have occurred a “Company Material Adverse Effect”, as defined in the Merger Agreement since December 31, 2011,
(d) Borrower shall have paid the fee required by the First Amendment Fee Letter on the Transaction Closing Date and shall have performed all its obligations under this Amendment, (e) on or before the Transaction Closing Date, Borrower
shall have delivered to Agent a due authorization, execution and delivery and enforceability legal opinion with respect to this Amendment and the First Amendment Fee Letter, substantially in the form of the due authorization, execution and delivery
and enforceability opinion delivered to Agent at Closing with respect to the Loan (but with such changes as are necessary for the particulars of the transaction), (f) on or before the Transaction Closing Date, Borrower shall have delivered to
Agent evidence, reasonably satisfactory to Agent, of the due authorization by Borrower and GWRI of this Amendment and the First Amendment Fee Letter, current good-standing certificates from all relevant jurisdictions of organization with respect to
Borrower, GWROP and GWRI, and photo identification, certified by an officer of Borrower, of the 

  
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individuals executing this Amendment and the First Amendment Fee Letter on behalf of Borrower and GWRI; (g) on or before the Transaction Closing Date, Borrower shall have delivered to Agent
such items as Agent may reasonably request to satisfy the Patriot Act and other “know your customer” Legal Requirements, and (h) on or before the Transaction Closing Date, Borrower shall have paid all of the costs and expenses of
Agent and Lenders as more particularly described in Section 15 hereof. 
 SECTION 4. Termination of Provisions.

 (a) If (i) the Transaction Closing Date does not occur on or before July 12, 2012 or (ii) the Merger
Agreement is terminated pursuant to any of Sections 8.1 through 8.4 of the Merger Agreement, then Sections 1(a) through 1(m) and 3 hereof shall be void and of no force and effect, and the Loan Agreement shall not be amended
thereby. 
 (b) If on or before the fifth Business Day following the Transaction Closing Date, Borrower shall not have procured
the Interest Rate Protection Agreement(s) or amendments thereto as required by Section 2.6(a) of the Loan Agreement, as amended by this Amendment, and satisfied all requirements with respect thereto set forth in said
Section 2.6(a), including delivery to Agent of an Interest Rate Protection Agreement Consent, then Sections 1(f) and 1(i) hereof shall be void and of no force and effect (such that the “Maturity Date” shall become
the Initial Maturity Date, or such earlier date as the entire principal amount of the Loan shall become due and payable by acceleration or otherwise), and the Loan Agreement shall not be amended thereby, but this Amendment shall otherwise remain in
full force and effect. 
 SECTION 5. Ratification. Borrower hereby ratifies and reaffirms its obligations, waivers,
indemnities and covenants under the Loan Agreement, as amended hereby, and under the other Loan Documents. 
 SECTION 6.
Outstanding Amount. The parties acknowledge that, as of the date hereof, the outstanding principal balance of the Loan is $53,007,393. 
 SECTION 7. Representations and Warranties. Borrower hereby represents and warrants to Agent and Lenders as follows (which representations and warranties shall be given as of the date hereof and
shall survive the execution and delivery of this Amendment): 
 (a) Due Execution. This Amendment has been duly executed
and delivered by Borrower, and all necessary actions have been taken to authorize Borrower to perform its obligations under the Loan Agreement, as amended hereby, and the other Loan Documents. 

(b) Enforceability. The Loan Agreement, as amended hereby, and the other Loan Documents, constitute legal, valid and binding
obligations of Borrower. 
 (c) No Violation. The consummation of the transactions contemplated herein, the execution and
delivery of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended hereby, and the other Loan Documents, do not (i) violate any Legal Requirement, (ii) result in a breach of any of the terms,
conditions or provisions of, or constitute a default under any mortgage, deed of trust, indenture, agreement, 

  
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permit, franchise, license, note or instrument to which Borrower, GWRI or any Affiliate of either is a party or by which it or any of its properties is bound, (iii) result in the creation or
imposition of any lien, charge or encumbrance of any nature whatsoever upon any of the assets of Borrower, GWRI or any Affiliate of either (except as contemplated by the Loan Agreement and by the other Loan Documents) or (iv) violate any
provision of the operating agreement or other organizational documents of Borrower or GWRI. 
 (d) Consents. All
consents, approvals, orders or authorizations of, or registrations, declarations or filings with, all Governmental Authorities or any party to any Permitted Encumbrance that are required in connection with the valid execution and delivery of this
Amendment and the performance by Borrower of the Loan Agreement, as amended hereby, and the other Loan Documents, have been obtained and are in full force and effect. 
 (e) Transaction. Upon the consummation of the Merger, Fund VII shall directly or indirectly own a majority of the equity interests in GWRI. Giving effect to and after the Transaction, Borrower
shall continue to comply with the terms of Section 5.39 of the Loan Agreement. The consummation of the Transaction shall not violate any applicable Legal Requirement in any material respect. 

(f) Defaults. No Event of Default exists as of the date hereof. 

(g) Claims by Borrower. As of the date hereof, there are no claims, counterclaims, offsets or defenses with respect to
Borrower’s obligations under any of the Loan Documents and Borrower otherwise has no claims or counterclaims against Agent or Lenders or any of their present or past respective affiliates, officers, directors, employees and agents. In
confirmation of the foregoing, Borrower hereby releases the foregoing Persons from any liability to Borrower, with respect to any such claims or counterclaims or any related liabilities (whether or not the factual matters giving rise to the same are
known as of the date hereof). 
 SECTION 8. Successors and Assigns. This Amendment shall be binding upon and inure to the
benefit of Agent and Lenders and their respective successors and assigns and shall be binding upon Borrower and its permitted successors and assigns. 
 SECTION 9. Applicable Law. This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York. 

SECTION 10. No Other Amendments. The Loan Agreement and the other Loan Documents remain in full force and effect and, except as
the Loan Agreement has been amended herein, remain unchanged. 
 SECTION 11. Severability of Provisions. Any provision of
this Amendment which is prohibited or unenforceable in the State of New York or in any jurisdiction in the United States shall, as to the State of New York or such jurisdiction in the United States, be ineffective to the extent of such prohibition
or unenforceability without invalidating the remaining provisions hereof or affecting the validity or unenforceability of such provision in any other jurisdiction. 

  
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 SECTION 12. Headings. The headings of the various sections, sub-sections and
paragraphs hereof are for convenience of reference only and shall not define, modify, limit or amplify any of the terms or provisions hereof. 
 SECTION 13. Counterparts. This Amendment may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, and it shall not be necessary in making proof of this
Amendment to produce or account for more than one such counterpart. 
 SECTION 14. WAIVER OF TRIAL BY JURY. BORROWER,
AGENT AND LENDERS HEREBY EXPRESSLY AND UNCONDITIONALLY WAIVE ANY AND EVERY RIGHT IT MAY HAVE TO A TRIAL BY JURY, IN ANY SUIT, ACTION OR PROCEEDING BROUGHT UNDER OR WITH RESPECT TO THIS AMENDMENT. 

SECTION 15. Costs and Expenses. Borrower shall pay all costs and expenses incurred by Agent and Lenders in connection with this
Amendment, including Agent’s Counsel Fees and reasonable fees and disbursements of Lenders’ counsel. 
 [SIGNATURES
FOLLOW] 

  
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 IN WITNESS WHEREOF, Borrower, Agent and Lenders have executed this Amendment as of
the date first above written. 
  

			
	BORROWER:
	
	GREAT WOLF LODGE OF THE CAROLINAS, LLC, a Delaware limited liability company
		
	By:	 	 /s/ Kimberly Schaefer

		 	Name: Kimberly Schaefer
		 	Title: President

 [Signatures continue on following page] 

 
			
	AGENT:
	
	CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK, as agent
		
	By:	 	 /s/ Thomas W. Boylan

		 	Name: Thomas W. Boylan
		 	Title: Director
		
	By:	 	 /s/ Ted Vandermel

		 	Name: Ted Vandermel
		 	Title: Director

  

			
	LENDERS:
	
	CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK
		
	By:	 	 /s/ David Bowers

		 	Name: David Bowers
		 	Title: Managing Director
		
	By:	 	 /s/ Jason Chrein

		 	Name: Jason Chrein
		 	Title: Director

  

			
	DEUTSCHE BANK TRUST COMPANY AMERICAS
		
	By:	 	 /s/ George R. Reynolds

		 	Name: George R. Reynolds
		 	Title: Director
		
	By:	 	 /s/ J.T. Johnston Coe

		 	Name: J.T. Johnston Coe
		 	Title: Managing Director

 By its execution below, Guarantor (i) acknowledges the foregoing Amendment; (ii) ratifies and
reaffirms its obligations under the Guaranty of Payment, the Environmental Indemnity and the Recourse Liability Agreement; (iii) agrees that the Guaranty of Payment, the Environmental Indemnity and the Recourse Liability Agreement remain
unmodified and in full force and effect, notwithstanding the execution of the foregoing Amendment; (iv) represents and warrants that all representations and warranties set forth in the Guaranty of Payment, the Environmental Indemnity and the
Recourse Liability Agreement are true and correct in all material respects as of the date hereof and shall have the same force and effect as if made on and as of the date hereof except to the extent such representations and warranties relate solely
to an earlier date; and (v) represents and warrants that there are no claims, defenses, offsets or counterclaims with respect to any of its obligations under the Guaranty of Payment, the Environmental Indemnity and the Recourse Liability
Agreement, and to the extent any such claims, defenses, offsets or counterclaims have arisen, they are hereby waived. In confirmation of the foregoing clause (v), Guarantor hereby releases Agent and Lenders and each of their present or past
respective affiliates, officers, directors, employees and agents from any liability to Guarantor, with respect to any such claims or counterclaims or any related liabilities (whether or not the factual matters giving rise to the same are known as of
the date hereof). 
 [Signature on following page] 

 
					
	GREAT WOLF RESORTS, INC., a Delaware corporation
		
	 By:
	 	 /s/ Kimberly Schaefer

		 	 Name:
	 	 Kimberly Schaefer

		 	 Title:
	 	 PresidentOption Award Agreement

 Exhibit 10.1 
 Option Award Agreement with Michael R. Orsino, Executive Vice President and Chief Lending Officer 
 SUFFOLK BANCORP 
 2009 STOCK INCENTIVE PLAN 

NONQUALIFIED STOCK OPTION AGREEMENT 
 THIS OPTION AGREEMENT (this “Agreement”), dated as of March 9, 2012 (the “Grant Date”), is made by and between Suffolk Bancorp, a New York corporation (the
“Company”), and Michael R. Orsino (“Participant”). 
 WHEREAS, the Company has adopted
and maintains the Suffolk Bancorp 2009 Stock Incentive Plan (the “Plan”), pursuant to which nonqualified stock options may be granted to purchase shares of the Company’s Common Stock; and 

WHEREAS, the Committee has determined that it would be in the best interests of the Company and its stockholders to grant
Participant nonqualified stock options on the terms and subject to the conditions set forth in this Agreement and the Plan. 

NOW, THEREFORE, for and in consideration of the premises and the covenants of the parties contained in this Agreement and for
other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto, for themselves, their successors and assigns, hereby agree as follows: 
 1. Grant of Option. 
 (a) Grant. The Company hereby grants to
Participant a nonqualified stock option (the “Option” and any portion thereof, the “Options”) to purchase 20,000 shares of Common Stock (such shares of Common Stock, the “Shares”), on the terms and
conditions set forth in this Agreement and as otherwise provided in the Plan. The Option is not intended to qualify as an incentive stock option within the meaning of Section 422 of the Internal Revenue Code (the “Code”).

 (b) Incorporation by Reference, Etc. The provisions of the Plan are hereby incorporated herein by reference. Except
as otherwise expressly set forth herein, this Agreement shall be construed in accordance with the provisions of the Plan and any capitalized terms not otherwise defined in this Agreement shall have the definitions set forth in the Plan. 

2. Exercise Price. The Exercise Price for each Share subject to the Option shall be the closing price of the stock as of the date
of this agreement. 
 3. Vesting. Except as may otherwise be provided herein, the Option shall become non-forfeitable
(any Options that shall have become nonforfeitable pursuant to this Section 3, the “Vested Options”) and shall become exercisable according to the following provisions: 

(a) General Vesting. Subject to Participant’s continued employment with the Company as of any such date (i) Options in
respect of 6,667 Shares shall become Vested Options and shall become exercisable on the first anniversary of the Grant Date; (ii) Options in respect of 6,667 Shares shall become Vested Options and shall become exercisable on the second
anniversary of the Grant Date; and (iii) Options in respect of 6,666 Shares shall become Vested Options and shall become exercisable on the third anniversary of the Grant Date. 

 (b) Termination of Service. Except as provided in the immediately following
sentence, in the event that Participant incurs a Termination of Service, any Options that have not theretofore become Vested Options (such Options, the “Unvested Options”) shall be forfeited without consideration by Participant.
Notwithstanding the foregoing, in the event Participant incurs a Termination of Employment (i) by the Company without “Cause” (as defined in the Change of Control Agreement by and among Participant, The Suffolk County National
Bank and the Company dated as of March 8, 2012 (the “Change of Control Agreement”), (ii) by Participant for “Good Reason” (as defined in the Change of Control Agreement), or (iii) due to Participant’s
death or “Disability” (as defined in the Company’s long-term disability plan applicable to Participant as in effect from time to time), any Unvested Option that is outstanding as of immediately prior to such Termination of Employment
shall vest and become exercisable in full effective as of the date of Termination of Employment. 
 (c) Change in
Control. Any Unvested Options that are outstanding as of immediately prior to a Change in Control shall vest and become exercisable in full effective as of the date of such Change in Control. 

4. Termination. 
 (a) The Option, if still outstanding, shall automatically terminate and become null and void on the first to occur of the following dates: 

(i) the tenth anniversary of the Grant Date, including for the avoidance of doubt, following Participant’s Termination of
Employment by the Company without Cause or by Participant for Good Reason whether prior to or after a Change in Control; 

(ii) the second anniversary following Participant’s Termination of Employment, in the case of a Termination of Employment due to
death; 
 (iii) the first anniversary following Participant’s Termination of Employment, in the case of a Termination of
Employment due to Disability; 
 (iv) 90 days following Participant’s Termination of Employment, in the case of a
Termination of Employment by Participant due to “Retirement” (as such term is used in the Plan); 
 (v) 90 days
following Participant’s Termination of Employment, in the case of a Termination of Employment by Participant without Good Reason and other than due to Retirement; and 

  
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 (vi) the date of Participant’s Termination of Employment, in the case of a Termination
of Employment by the Company for Cause. 
 (b) Notwithstanding the provisions of Section 4(a) to the contrary and unless a
longer period is provided under Section 4(a), in the event of Participant’s Termination of Employment for any reason (other than due to a Termination of Employment for Cause) during the two-year period following a Change in Control, the
Option shall remain outstanding and exercisable until the earlier of (i) the tenth anniversary of the Grant Date and (ii) the one year anniversary of such Termination of Employment. 

(c) Except as otherwise provided in the Plan and Section 3(b) of this Agreement, upon a Termination of Employment for any reason,
any Unvested Options shall immediately terminate and be forfeited on the date the Termination of Employment occurs. 
 5.
Exercise Procedures. Subject to the terms of this Agreement, including the provisions of Sections 2, 3 and 4 above and Section 10 below, Participant may exercise part or all of the Vested Option by giving the Company a signed written
notice of intent to exercise in accordance with Section 11(b), which shall state Participant’s election to exercise the Option and the number of Shares in respect of which the Option is being exercised (which must be a whole number).
Payment of the Exercise Price shall be by any of the following, or a combination of the following, at the election of Participant: (a) cash, (b) check or (c) reduction of the Shares issuable upon exercise, surrender of previously
owned Shares, or to the extent permitted by law, broker-assisted cashless exercise. The Board may impose from time to time such limitations as it deems appropriate on the use of Shares of the Company to satisfy the Exercise Price of the Option.

 6. Compliance with Legal Requirements. The grant and exercise of the Option, and any other obligations of the Company
under this Agreement shall be subject to all applicable federal and state laws, rules and regulations and to such approvals by any regulatory or governmental agency as may be required. The Committee, in its sole discretion, may postpone the issuance
or delivery of Shares as the Committee may consider appropriate and may require Participant to make such representations and furnish such information as it may consider appropriate in connection with the issuance or delivery of the Shares in
compliance with applicable laws, rules and regulations. 
 7. Transferability. The Option may not be assigned, alienated,
pledged, attached, sold or otherwise transferred or encumbered by Participant other than by will or by the laws of descent and distribution and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be
void and unenforceable against the Company, its Subsidiaries or Affiliates; provided that the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance. 

8. Adjustment. In the event of any event described in Section 3 of the Plan occurring after the Grant Date, the adjustment
provisions as provided for under Section 3 of the Plan shall apply to the Option. 

  
 -3-

 9. Rights as a Stockholder. 

Participant or a transferee of the Option shall have no rights as a stockholder with respect to any shares covered by such Option until
the date when his purchase is entered upon the records of the duly authorized transfer agent of the Company. 
 10. Tax
Withholding. As a condition to exercising the Option, in whole or in part, Participant will pay to the Company, or, pursuant to the withholding provisions of Section 10 of the Plan, make provisions satisfactory to the Company for payment
of, any federal, state or local tax laws in respect of the exercise of the Option. Participant may elect to have any withholding obligation satisfied by surrendering to the Company a portion of the Shares that are issued or transferred to
Participant upon the exercise of any Options (but only to the extent of the minimum withholding required by law) and the Shares so surrendered by Participant shall be credited against any such withholding obligation at the Fair Market Value of such
Shares on the date of such surrender (and the amount equal to the Fair Market Value of such Shares shall be remitted to the appropriate tax authorities). 
 11. Miscellaneous. 
 (a) Waiver and Amendment. The Committee may
waive any conditions or rights under, or amend any terms of, this Agreement and the Option granted thereunder; provided that any such waiver or amendment that would materially impair the rights of Participant or any holder or beneficiary of
any Option theretofore granted shall not to that extent be effective without the consent of Participant. No waiver of any right hereunder by any party shall operate as a waiver of any other right, or as a waiver of the same right with respect to any
subsequent occasion for its exercise, or as a waiver of any right to damages. No waiver by any party of any breach of this Agreement shall be held to constitute a waiver of any other breach or a waiver of the continuation of the same breach.

 (b) Notices. All notices, demands and other communications provided for or permitted hereunder shall be made in
writing and shall be by registered or certified first-class mail, return receipt requested, facsimile, courier service or personal delivery: 
  

			
	if to the Company:	 	 Suffolk Bancorp
 4 West Second
Street

		 	 P. O. Box 9000
 Riverhead, New
York 11901
 Attention: Corporate Secretary]

 if to Participant: at the address last on the records of the Company. 

All such notices, demands and other communications shall be deemed to have been duly given when delivered by hand, if personally delivered; when
delivered by courier, if delivered by commercial courier service; five business days after being deposited in the mail, postage prepaid, if mailed; and when receipt is mechanically acknowledged, if by facsimile. 

  
 -4-

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

(d) No Rights to Service. Nothing contained in this Agreement shall be construed as giving Participant any right to be retained,
in any position, as an employee, consultant or director of the Company or any of its Subsidiaries or Affiliates or shall interfere with or restrict in any way the right of the Company or any of its Subsidiaries or Affiliates, which is hereby
expressly reserved, to remove, terminate or discharge Participant at any time for any reason whatsoever. 
 (e)
Beneficiary. Participant may file with the Company a written designation of a beneficiary on such form as may be prescribed by the Committee and may, from time to time, change or revoke such designation by filing a new designation with the
Company. The last such designation received by the Company shall be controlling; provided, however, that no designation, or change or revocation thereof, shall be effective unless received by the Company prior to Participant’s
death, and in no event shall it be effective as of a date prior to such receipt. If no beneficiary designation is filed by Participant, the beneficiary shall be deemed to be his spouse or, if Participant is unmarried at the time of death, his
estate. 
 (f) Successors. The terms of this Agreement shall be binding upon and inure to the benefit of the Company,
its successors and assigns, and of Participant and the beneficiaries, executors, administrators, heirs and successors of Participant. 
 (g) Entire Agreement. This Agreement and the Plan contain the entire agreement and understanding of the parties hereto with respect to the subject matter contained herein and supersede all prior
communications, representations and negotiations with respect thereto, including without limitation the Letter Agreement. Notwithstanding anything to the contrary in the Letter Agreement, Participant acknowledges and agrees that the terms of the
Option shall be governed by this Agreement, rather than the provisions of the Letter Agreement and, in the event of a conflict between those provisions of the Letter Agreement and this Agreement, this Agreement shall control. 

(h) Bound by the Plan. By signing this Agreement, Participant acknowledges that he has received a copy of the Plan and has had an
opportunity to review the Plan and agrees to be bound by all the terms and provisions of the Plan. 
 (i) Governing Law.
This Agreement shall be construed and interpreted in accordance with the internal laws of the State of New York without regard to principles of conflicts of law thereof, or principles of conflicts of laws of any other jurisdiction that could cause
the application of the laws of any jurisdiction other than the State of New York. 
 (j) Headings. The headings of the
Sections hereof are provided for convenience only and are not to serve as a basis for interpretation or construction and shall not constitute a part of this Agreement. 

  
 -5-

 (k) Signature in Counterparts. This Agreement may be signed in counterparts, each of
which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. 

[Remainder of page intentionally left blank; signature page to follow] 

  
 -6-

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement. 

 

	
	SUFFOLK BANCORP
	
	 /s/ Howard C. Bluver

	HOWARD C. BLUVER
	Title: President and Chief Executive Officer
	
	MICHAEL R. ORSINO
	
	 /s/ Michael R. Orsino

 [Signature Page to Nonqualified Stock Option Agreement under the Plan]

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