Document:

EX-10.34

 

EXHIBIT 10.34

PLEDGE AGREEMENT

by and between

EMPLOYEE STOCK OWNERSHIP PLAN TRUST

of

HUDSON CITY SAVINGS BANK

and

HUDSON CITY BANCORP, INC.

Made and Entered Into as of

June 21, 2005

 

 

Exhibit 10.34

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	PAGE
	Section 1. Definitions

	 	 	1	 
	Section 2. Pledge

	 	 	1	 
	Section 3. Representations and Warranties of the Pledgor

	 	 	2	 
	Section 4. Eligible Collateral

	 	 	2	 
	Section 5. Delivery

	 	 	3	 
	Section 6. Events of Default

	 	 	3	 
	Section 7. Payment in Full

	 	 	4	 
	Section 8. No Waiver

	 	 	4	 
	Section 9. Binding Effect; No Assignment or Delegation

	 	 	4	 
	Section 10. Governing Law

	 	 	4	 
	Section 11. Notices

	 	 	4	 
	Section 12. Interpretation

	 	 	5	 
	Section 13. Construction

	 	 	6	 

 

 

PLEDGE AGREEMENT

          This PLEDGE AGREEMENT (“Pledge Agreement”) is made as of the 21st day of June,
2005, by and between the EMPLOYEE STOCK OWNERSHIP PLAN TRUST OF HUDSON CITY SAVINGS BANK, acting by
and through its Trustee, GreatBanc Trust Company, a trust corporation organized under the laws of
the State of Illinois and having an office at 45 Rockefeller Plaza, Suite 2055, New York, New York
10111-2000 (“Pledgor”), and Hudson City Bancorp, Inc., a corporation organized and existing under
the laws of the State of Delaware, having an office at West 80 Century Road, Paramus, New Jersey
07652-1473 (“Pledgee”).

W I T N E S S E T H:

          Whereas, this Pledge Agreement is being executed and delivered to the Pledgee
pursuant to the terms of a Loan Agreement of even date herewith (“Loan Agreement”), by and between
the Pledgor and the Pledgee;

          Now, Therefore, in consideration of the mutual agreements contained herein and in the
Loan Agreement, the parties hereto do hereby covenant and agree as follows:

          Section 1. Definitions. The following definitions shall apply for purposes of this
Pledge Agreement, except to the extent that a different meaning is plainly indicated by the
context; all capitalized terms used but not defined herein shall have the respective meanings
assigned to them in the Loan Agreement:

     (a) Collateral shall mean the Pledged Shares and, subject to section 5
hereof, and to the extent permitted by applicable law, all rights with respect thereto,
and all proceeds of such Pledged Shares and rights.

     (b) Event of Default shall mean an event so defined in the Loan Agreement.

     (c) Liabilities shall mean all the obligations of the Pledgor to the Pledgee,
howsoever created, arising or evidenced, whether direct or indirect, absolute or
contingent, now or hereafter existing, or due or to become due, under the Loan Agreement
and the Promissory Note.

     (d) Pledged Shares shall mean all the shares of Common Stock of Hudson City
Bancorp, Inc. purchased by the Pledgor with the proceeds of the loan made by the Pledgee
to the Pledgor pursuant to the Loan Agreement, but excluding any such shares previously
released pursuant to section 4.

          Section 2. Pledge. To secure the payment of and performance of all the Liabilities,
the Pledgor hereby pledges to the Pledgee, and grants to the Pledgee a security interest in and
lien upon, the Collateral.

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          Section 3. Representations and Warranties of the Pledgor. The Pledgor represents,
warrants, and covenants to the Pledgee as follows:

     (a) to the actual knowledge of the Trustee, the execution, delivery and performance
of this Pledge Agreement and the pledging of the Collateral hereunder do not and will not
conflict with, result in a violation of, or constitute a default under any agreement
binding upon the Pledgor;

     (b) the Pledged Shares are and will continue to be owned by the Pledgor free and
clear of any liens or rights of any other person except the lien hereunder and under the
Loan Agreement in favor of the Pledgee, and the security interest of the Pledgee in the
Pledged Shares and the proceeds thereof is and will continue to be prior to and senior to
the rights of all others;

     (c) to the actual knowledge of the Trustee, this Pledge Agreement is the legal,
valid, binding and enforceable obligation of the Pledgor in accordance with its terms;

     (d) the Pledgor shall, from time to time, upon request of the Pledgee, promptly
deliver to the Pledgee such stock powers, proxies, and similar documents, satisfactory in
form and substance to the Pledgee, with respect to the Collateral as the Pledgee may
reasonably request; and

     (e) subject to the first sentence of section 4(b), the Pledgor shall not, so long as
any Liabilities are outstanding, sell, assign, exchange, pledge or otherwise transfer or
encumber any of its rights in and to any of the Collateral.

          Section 4. Eligible Collateral.

     (a) As used herein the term “Eligible Collateral” shall mean that amount of
Collateral which has an aggregate fair market value equal to the amount by which the
Pledgor is in default (without regard to any amounts owing solely as the result of an
acceleration of the Loan Agreement) or such lesser amount of Collateral as may be required
pursuant to section 12 of this Pledge Agreement.

     (b) The Pledged Shares shall be released from this Pledge Agreement in a manner
conforming to the requirements of Treasury Regulations Section 54.4975-7(b)(8), as the
same may be from time to time amended or supplemented, and section 6.4(a) of the ESOP.
Subject to such Regulations, the Pledgee may from time to time, after any Default or Event
of Default, and without prior notice to the Pledgor, transfer all or any part of the
Eligible Collateral into the name of the Pledgee or its nominee, with or without
disclosing that such Eligible Collateral is subject to any rights of the Pledgor and may
from time to time, whether before or after any of the Liabilities shall become due and
payable, without notice to the Pledgor, take all or any of the following actions: (i)
notify the parties obligated on any of the Eligible Collateral to make payment to the
Pledgee of any amounts due or to become due thereunder, (ii) release or exchange all or
any part of the Eligible Collateral, or compromise or extend or renew for any period
(whether or not longer than the original period) any obligations of any

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nature of any party with respect thereto, and (iii) take control of any proceeds of
the Eligible Collateral.

          Section 5. Delivery.

     (a) The Pledgor shall deliver to the Pledgee upon execution of this Pledge Agreement
an assignment by the Pledgor of all the Pledgor’s rights to and interest in the Pledged
Shares.

     (b) So long as no Default or Event of Default shall have occurred and be continuing,
(i) the Pledgor shall be entitled to exercise any and all voting and other rights
pertaining to the Collateral or any part thereof for any purpose not inconsistent with the
terms of this Pledge Agreement, and (ii) the Pledgor shall be entitled to receive any and
all cash dividends or other distributions paid in respect of the Collateral.

          Section 6. Events of Default.

     (a) If a Default or an Event of Default shall be existing, in addition to the rights
it may have under the Loan Agreement, the Promissory Note, and this Pledge Agreement, or
by virtue of any other instrument, (i) the Pledgee may exercise, with respect to the
Eligible Collateral, from time to time any rights and remedies available to it under the
Uniform Commercial Code as in effect from time to time in the State of New Jersey or
otherwise available to it and (ii) the Pledgee shall have the right, for and in the name,
place and stead of the Pledgor, to execute endorsements, assignments, stock powers and
other instruments of conveyance or transfer with respect to all or any of the Eligible
Collateral. Written notification of intended disposition of any of the Eligible Collateral
shall be given by the Pledgee to the Pledgor at least three (3) Business Days before such
disposition. Subject to section 13 below, any proceeds of any disposition of Eligible
Collateral may be applied by the Pledgee to the payment of expenses in connection with the
Eligible Collateral, including, without limitation, reasonable attorneys’ fees and legal
expenses, and any balance of such proceeds may be applied by the Pledgee toward the
payment of such of the Liabilities as are in Default, and in such order of application, as
the Pledgee may from time to time elect. No action of the Pledgee permitted hereunder
shall impair or affect its rights in and to the Eligible Collateral. All rights and
remedies of the Pledgee expressed hereunder are in addition to all other rights and
remedies possessed by it, including, without limitation, those contained in the documents
referred to in the definition of Liabilities in section 1 hereof.

     (b) In any sale of any of the Eligible Collateral after a Default or an Event of
Default shall have occurred, the Pledgee is hereby authorized to comply with any
limitation or restriction in connection with such sale as it may be advised by counsel is
necessary in order to avoid any violation of applicable law (including, without
limitation, compliance with such procedures as may restrict the number of prospective
bidders and purchasers or further restrict such prospective bidders or purchasers to
persons who will represent and agree that they are purchasing for their own account for
investment and not with a view to the distribution or resale of such Eligible Collateral),

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or in order to obtain such required approval of the sale or of the purchase by any
governmental regulatory authority or official, and the Pledgor further agrees that such
compliance shall not result in such sale’s being considered or deemed not to have been
made in a commercially reasonable manner, nor shall the Pledgee be liable or accountable
to the Pledgor for any discount allowed by reason of the fact that such Eligible
Collateral is sold in compliance with any such limitation or restriction.

          Section 7. Payment in Full. Upon the payment in full of all outstanding
Liabilities, this Pledge Agreement shall terminate and the Pledgee shall forthwith assign,
transfer and deliver to the Pledgor, against receipt and without recourse to the Pledgee, all
Collateral then held by the Pledgee pursuant to this Pledge Agreement.

          Section 8. No Waiver. No failure or delay on the part of the Pledgee in exercising
any right or remedy hereunder or under any other document which confers or grants any rights in the
Pledgee in respect of the Liabilities shall operate as a waiver thereof nor shall any single or
partial exercise of any such right or remedy preclude any other or further exercise thereof or the
exercise of any other right or remedy of the Pledgee.

          Section 9. Binding Effect; No Assignment or Delegation. This Pledge Agreement shall
be binding upon and inure to the benefit of the Pledgor, the Pledgee and their respective
successors and assigns, except that the Pledgor may not assign or transfer its rights hereunder
without the prior written consent of the Pledgee (which consent shall not unreasonably be
withheld). Each duty or obligation of the Pledgor to the Pledgee pursuant to the provisions of this
Pledge Agreement shall be performed in favor of any person or entity designated by the Pledgee, and
any duty or obligation of the Pledgee to the Pledgor may be performed by any other person or entity
designated by the Pledgee.

          Section 10. Governing Law. This Pledge Agreement shall be governed by and construed
in accordance with the laws of the State of New Jersey applicable to agreements to be performed
wholly within the State of New Jersey.

          Section 11. Notices. All notices, requests, instructions or documents hereunder shall
be in writing and delivered by hand or commercial messenger service or sent by United States mail,
registered or certified, return receipt requested, with proper postage prepaid, or by telex or
facsimile, addressed as follows:

(a) If to the Pledgee:

Hudson City Bancorp, Inc.

West 80 Century Road

Paramus, New Jersey 07652-1473

Attention: Chief Financial Officer

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with a copy to:

Thacher Proffitt & Wood llp

Two World Financial Center,

New York, New York 10281

Attention: W. Edward Bright, Esq.

(b) If to the Pledgor:

Employee Stock Ownership Plan Trust

of Hudson City Savings Bank

c/o Hudson City Savings Bank

West 80 Century Road

Paramus, New Jersey 07652-1473

Attention: Senior Personnel Officer

with copies to:

GreatBanc Trust Company

45 Rockefeller Plaza, Suite 2055

New York, New York 10111-2000

Attention: Mr. Stephen J. Hartman, Jr.

Thacher Proffitt & Wood llp

Two World Financial Center, 28th Floor

New York, New York 10281

Attention: W. Edward Bright, Esq.

The Goldstein Law Firm, P.C.

12 Corporate Woods Boulevard

Albany, New York 12211-2350

Attention: Brian P. Goldstein, Esq.

Any notice, request or communication hereunder shall be deemed to have been given on the day on
which it is delivered by hand or by commercial messenger service, or sent by telex or facsimile, to
such party at its address specified above, or, if sent by mail, on the third Business Day after the
day deposited in the mail, postage prepaid, addressed as aforesaid. Any party may change the person
or address to whom or which notices are to be given hereunder, by notice duly given hereunder;
provided, however, that any such notice shall be deemed to have been given only when actually
received by the party to whom it is addressed.

          Section 12. Interpretation. Wherever possible each provision of this Pledge Agreement
shall be interpreted in such manner as to be effective and valid under applicable law, but if any
provision hereof shall be prohibited by or invalid under such law, such provisions shall be
ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions hereof.

-5-

 

          Section 13. Construction. All provisions hereof shall be construed so as to maintain
(a) the ESOP as a qualified leveraged employee stock ownership plan under section 401(a) and
4975(e)(7) of the Internal Revenue Code of 1986 (the “Code”), (b) the Trust as exempt from taxation
under section 501(a) of the Code and (c) the Trust Loan as an exempt loan under section
54.4975-7(b) of the Treasury Regulations and as described in Department of Labor Regulation section
2550.408b-3.

          In Witness Whereof, this Pledge Agreement has been duly executed by the parties
hereto as of the day and year first above written.

	 	 	 	 	 
	 	 	Employee Stock Ownership Plan Trust
of Hudson City Savings Bank
	 
	 	 	 	 
	 

	 	By:
	 	GreatBanc Trust Company, as Trustee
and not in any other capacity
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Stephen J. Hartman, Jr.
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	Senior Vice President
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	Hudson City Bancorp, Inc.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Ronald E. Hermance, Jr.
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	Chairman and Chief Executive Officer
	 

	 	 	 	 

-6-EX-10.35

 

EXHIBIT 10.35

FORM OF ASSIGNMENT

     In consideration of the loan made by Hudson City Bancorp, Inc. (“Lender”) to the Employee
Stock Ownership Plan Trust of Hudson City Savings Bank (“Borrower”) pursuant to the Loan Agreement
between the Lender and the Borrower of even date herewith (“Loan Agreement”) and pursuant to the
Pledge Agreement between the Lender and the Borrower of even date herewith pertaining thereto,
subject to the terms of the Loan Agreement and the Pledge Agreement, the undersigned Borrower
hereby transfers, assigns and conveys to Lender all its right, title and interest in and to those
certain shares of common stock of the Lender which it shall purchase with the proceeds of the loan
made pursuant to the Loan Agreement, and agrees to transfer and endorse to Lender the certificates
representing such shares as and when required pursuant to the Loan Agreement or Pledge Agreement.

	 	 	 	 	 
	 	 	Employee Stock Ownership Plan Trust of Hudson City Savings Bank
	 
	 	 	 	 
	 

	 	By:
	 	GreatBanc Trust Company, as Trustee and not in any other
capacity
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Stephen J. Hartman, Jr.
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	Senior Vice President

June 21, 2005

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