Document:

First Amendment to Second Amended and Restated Credit Agreement

 EXHIBIT 10.6 
  
 FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT 
 AGREEMENT 
  
 THIS FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”), dated as of March 21, 2005, is entered into among Familymeds, Inc., a Connecticut corporation (“Familymeds”);
Valley Drug Company, an Ohio corporation (“Valley North”); Valley Drug Company South, a Louisiana corporation (“Valley South”) (Familymeds, Valley North and Valley South are sometimes collectively referred to herein
as the “Borrowers” and individually each as a “Borrower”); DrugMax, Inc., a Nevada corporation; the other Credit Parties signatory hereto; General Electric Capital Corporation, a Delaware corporation (in its
individual capacity, “GE Capital”), for itself, as Lender, and as Agent for Lenders, and the other Lenders signatory hereto from time to time. 
  

W I T N E S S E T H: 
  
 WHEREAS, Borrowers, the other Credit Parties signatory thereto,
Lenders and the Agent have entered into certain financing arrangements pursuant to that certain Second Amended and Restated Credit Agreement dated as of December 9, 2004 (as further amended, modified, supplemented, extended, renewed, restated or
replaced from time to time, the “Credit Agreement”; all capitalized terms used herein shall have the respective meanings assigned thereto in the Credit Agreement unless otherwise defined herein); 
  
 WHEREAS, the Borrowers, the other Credit Parties, Lenders and the
Agent desire to modify and make certain amendments to the Credit Agreement in accordance with, and subject to the terms and conditions set forth in, this Amendment. 
  
 NOW, THEREFORE, in consideration of the foregoing, the respective agreements, warranties and covenants
contained herein, for $10 and other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  
 SECTION 1. AMENDMENTS TO CREDIT AGREEMENT 
  

1.1 Subject to the terms and conditions of this Amendment, including without limitation Section 3 hereof, the Credit Agreement is amended
as follows: 
  
 (a) Annex A of the Credit Agreement is
hereby amended by inserting the following new defined term in its appropriate alphabetical order: 
  
 “Bank Products” means any one or more of the following types of services or facilities extended to any Borrower by a Lender or any
Affiliate of a Lender: (i) credit cards, stored value cards and purchasing cards; and (ii) treasury management services, including controlled disbursement services, automated clearinghouse transactions, return items, overdraft and interstate
depository network services. 
  

 1 

 (b) The definition of the term “Availability Block” set forth in Annex A to the
Credit Agreement is hereby deleted in its entirety, and the following new definition of the term “Availability Block” is inserted in lieu thereof: 
  
 “Availability Block” means the sum of $7,000,000, which sum may be adjusted hereafter upon written consent
of all the Requisite Lenders. 
  
 (c) The definition of the term
“Obligations” set forth in Annex A to the Credit Agreement is hereby deleted in its entirety, and the following new definition of the term “Obligations” is inserted in lieu thereof: 
  
 “Obligations” means all loans, advances, debts, liabilities
and obligations, for the performance of covenants, tasks or duties or for payment of monetary amounts (whether or not such performance is then required or contingent, or such amounts are liquidated or determinable) owing by any Credit Party to Agent
or any Lender, and all covenants and duties regarding such amounts, of any kind or nature, present or future, whether or not evidenced by any note, agreement, letter of credit agreement or other instrument, arising under the Agreement or any of the
other Loan Documents. This term includes all principal, interest (including all interest that accrues after the commencement of any case or proceeding by or against any Credit Party in bankruptcy, whether or not allowed in such case or proceeding),
Fees, obligations of any Credit Party with respect to Bank Products, hedging obligations under swaps, caps and collar arrangements provided by any Lender, expenses, attorneys’ fees and any other sum chargeable to any Credit Party under the
Agreement or any of the other Loan Documents. 
  
 (d) The
definition of the terms “Requisite Lenders” and “Requisite Revolving Lenders” set forth in Annex A to the Credit Agreement are hereby amended by inserting the following proviso at the end of each of the
existing definitions: 
  
 ; provided, however, in no event will
Obligations with respect to Bank Products be included for purposes of determining outstanding Commitments or Loans of the Lenders. 
  
 (e) Section 1.3(a) of the Credit Agreement is hereby amended by deleting the proviso clause in the first sentence thereof and restating such proviso as
follows: 
  
 ; provided that upon such termination all
Loans and other Obligations (other than Obligations with respect to Bank Products) shall be immediately due and payable in full and all Letter of Credit Obligations shall be cash collateralized or otherwise satisfied in accordance with Annex
B hereto. 
  

 2 

 (f) Section 1.11(a) of the Credit Agreement is hereby deleted in its entirety, and the following
new paragraph is inserted in lieu thereof: 
  
 So long as no
Default or Event of Default has occurred and is continuing, (i) payments consisting of proceeds of Accounts received in the ordinary course of business shall be applied to the Revolving Loan; (ii) voluntary prepayments shall be applied in accordance
with the provisions of Section 1.3(a); and (iii) mandatory prepayments shall be applied as set forth in Sections 1.3(c). All payments and prepayments applied to a particular Loan shall be applied ratably to the portion thereof held by
each Lender as determined by its Pro Rata Share. As to any other payment, and as to all payments made when a Default or Event of Default has occurred and is continuing or following the Commitment Termination Date, each Borrower hereby irrevocably
waives the right to direct the application of any and all payments received from or on behalf of such Borrower, and each Borrower hereby irrevocably agrees that Agent shall have the continuing exclusive right to apply any and all such payments
against the Obligations as Agent may deem advisable notwithstanding any previous entry by Agent in the Loan Account or any other books and records. In the absence of a specific determination by Agent with respect thereto, payments shall be applied
to amounts then due and payable in the following order: (1) to Fees and Agent’s expenses reimbursable hereunder; (2) to interest on the Loans, ratably in proportion to the interest accrued as to each Loan; (3) to principal payments on the Loans
and to provide cash collateral for Letter of Credit Obligations in the manner described in Annex B; (4) to all other Obligations (other than those with respect to Bank Products), including expenses of Lenders to the extent reimbursable under
Section 11.3, and (5) to all Obligations with respect to Bank Products. Notwithstanding any other provision of this Agreement to the contrary, no payment or proceeds of Collateral shall be applied to Obligations with respect to Bank Products
until all other Obligations not relating to Bank Products have been paid in full. 
  
 (g) Section 1.3(c) of the Credit Agreement is hereby deleted in its entirety, and the following new paragraph is inserted in lieu thereof: 
  
 Any prepayments made by Borrowers pursuant to Sections 1.3(b)(ii) or (b)(iii) above shall be applied in the
following order: first, to Fees and reimbursable expenses of Agent then due and payable pursuant to any of the Loan Documents; second, to interest 
  

 3 

 then due and payable on the Revolving Credit Advances; third, to the outstanding principal balance
of Revolving Credit Advances until the same has been paid in full; fourth, to any Letter of Credit Obligations, to provide cash collateral therefor in the manner set forth in Annex B, until all such Letter of Credit Obligations have
been fully cash collateralized in the manner set forth in Annex B; fifth, to pay any other Obligations (other than those with respect to Bank Products) that may be then due and owing; and sixth, to pay any Obligations with
respect to Bank Products. The Revolving Loan Commitment shall not be permanently reduced by the amount of any such prepayments. 
  
 (h) Section 7.1 of the Credit Agreement is hereby deleted in its entirety and the following new Section 7.1 is substituted in lieu thereof: 
  
 7.1 Termination. The financing arrangements contemplated hereby shall
be in effect until the Commitment Termination Date, and the Loans and all other Obligations (other than Obligations with respect to Bank Products) shall be automatically due and payable in full on such date. 
  
 (i) Section 8.1 of the Credit Agreement is hereby amended by inserting
the following new subpart (r): 
  
 A “Condition” (as
such term is defined in that certain Subordinated Security Agreement (the “Subordinated Security Agreement”), dated as of March 21, 2005, by and among the Credit Parties and AmerisourceBergen Drug Corporation (“Amerisource”))
shall occur, (b) a Lien under the Subordinated Security Agreement attaches at any time on any assets of any Credit Party or (c) Amerisource files any UCC financing statement naming any Credit Party as debtor. 
  
 1.2 Except for the amendments set forth in Section 1.1 of this
Amendment, the Credit Agreement shall remain unchanged and in full force and effect. Nothing in this Amendment is intended, or shall be construed, to constitute a novation or an accord and satisfaction of any Borrower’s or any other Credit
Party’s Obligations under or in connection with the Credit Agreement or the other Loan Documents or to modify, affect or impair the perfection or continuity of Agent and Lenders’ security interests in, security titles to or other liens on
any Collateral for the Obligations. 
  
 SECTION 2. RESERVES 
  
 Without limiting or modifying in any manner the right of the Agent and
Lenders to establish Reserves in their discretion in accordance with the terms and conditions of the Credit Agreement, the parties hereto agree that (a) the Reserve in the amount of 
  

 4 

 $2,000,000 set forth in that certain letter agreement, dated as of February 4, 2005, by and among the parties hereto,
shall terminate upon the effectives of this Amendment in accordance with Section 3, and (b) the Reserve in the amount of $4,500,000 set forth in the Post-Closing Obligations Letter shall be released upon the termination of the Amerisource
Lien (as such term is defined in the Post-Closing Obligations Letter). 
  
 SECTION 3. CONDITIONS TO EFFECTIVENESS 
  
 This
Amendment shall become effective as of the date on which the Agent shall notify the Borrowers in writing that all of the conditions specified below have been satisfied as determined in the Agent’s sole discretion: 
  
 (a) Agent shall have received an original or facsimile copies of this
Amendment, duly authorized, executed and delivered by the Borrowers and each other Credit Party; 
  
 (b) Agent shall have received payment of all fees, costs and expenses (including the fees, costs and expenses of counsel or other advisors) requested by
it and incurred by or on behalf of Agent in connection with this Amendment and any of the other Loan Documents; 
  
 (c) No Default or Event of Default shall have occurred and be continuing; and 
  
 (d) Agent shall have received such other documents, information, certificates and instruments as it shall reasonably request
in connection with the Loan Documents and this Amendment. 
  
 SECTION 4.
REPRESENTATIONS AND WARRANTIES 
  
 Each Credit Party hereby
further represents and warrants with and to Agent as follows: 
  
 4.1 Representations and Warranties. After giving effect to the amendments set forth in Section 1 of this Amendment (provided that such waivers have not by their terms become void), the Credit Parties hereby represent
and warrant that each of the representations and warranties contained in the Loan Documents is true and correct on and as of the date hereof, except for any representation and warranty that relates by its terms only to a specified date (in which
case, it shall be true on and as of such date). 
  
 4.2
Binding Effect of Documents. This Amendment and the other Loan Documents have been duly executed and delivered to Agent by such Credit Party and are in full force and effect, as modified hereby. 
  
 4.3 No Conflict, Etc. The execution and delivery and
performance of this Amendment by such Credit Party will not violate any law, rule, regulation or order or contractual obligation or organizational document of such Credit Party and will not result in, or require, the creation or imposition of
any Lien on any of its properties or revenues. 
  

 5 

 SECTION 5. COVENANT 
  
 Each Credit Party hereby covenants and agrees with Agent and Lenders that any misrepresentation by any Credit Party in, or any failure of any Credit Party
to fully and timely comply with the covenants, conditions and agreements contained in, this Amendment shall constitute an immediate Event of Default under the Credit Agreement, without further action or notice by Agent. 
  
 SECTION 6. PROVISIONS OF GENERAL APPLICATION 
  
 6.1 Effect of this Amendment. Except as specifically modified
pursuant to Section 1 of this Amendment, no other changes or modifications to the Loan Documents are intended or implied and in all other respects the Loan Documents are hereby specifically ratified, restated and confirmed by all parties
hereto as of the effective date hereof. To the extent of conflict between the terms of this Amendment and the other Loan Documents, the terms of this Amendment shall control. The Credit Agreement and this Amendment shall be read and construed as one
agreement. 
  
 6.2 Strict Compliance. Agent
hereby notifies the Credit Parties that, effective from and after the date of this Amendment, Agent and Lenders intend to enforce all of the provisions of the Loan Documents and that Agent and Lenders expect that the Credit Parties will strictly
comply with the terms of the Loan Documents from and after this date. 
  
 6.3 Costs and Expenses. In addition to, and not in limitation of, any other provision contained in the Loan Documents with respect thereto, each Credit Party, jointly and severally, absolutely and
unconditionally agrees to pay to Agent, on demand by Agent, at any time and as often as the occasion therefore may require, whether or not all or any of the transactions contemplated by this Amendment are consummated, all fees and disbursements of
any counsel to Agent and allocated costs of internal counsel in connection with the preparation, negotiation, execution, or delivery of this Amendment and any agreements delivered in connection with the transactions contemplated hereby and expenses
which shall at any time be incurred or sustained by Agent or any of their respective directors, officers, employees, agents or assigns as a consequence of or in any way in connection with the preparation, negotiation, execution, or delivery of this
Amendment and any agreements prepared, negotiated, executed or delivered in connection with the transactions contemplated hereby. 
  
 6.4 Binding Effect. This Amendment shall be binding upon and inure to the benefit of each of the parties hereto and their respective
successors and assigns. 
  
 6.5 Survival of
Representations and Warranties. All representations and warranties made in this Amendment or any other document furnished in connection with this Amendment shall survive the execution and delivery of this Amendment and the other
documents, and no investigation by Agent or any Lenders shall affect the representations and warranties or the right of Agent or any Lenders to rely upon them. 
  

 6 

 6.6 Release. 
  
 (a) In consideration of the agreements of Agent and Lenders contained herein and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, each Credit Party, on behalf of itself and each of their respective successors, assigns, and other legal representatives, hereby absolutely, unconditionally and irrevocably releases,
remises and forever discharges the Agent and Lenders and its successors and assigns, and their present and former shareholders, affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees, agents and other
representatives (Agent and Lenders and all such other Persons being hereinafter referred to collectively as the “Releasees” and individually as a “Releasee”), of and from all demands, actions, causes of action,
suits, covenants, contracts, controversies, agreements, promises, sums of money, accounts, bills, reckonings, damages and any and all other claims, counterclaims, defenses, rights of set-off, demands and liabilities whatsoever (individually, a
“Claim” and collectively, “Claims”) of every name and nature, known or unknown, suspected or unsuspected, both at law and in equity, which such Credit Party or any of its successors, assigns, or other legal
representatives may now or hereafter own, hold, have or claim to have against the Releasees or any of them for, upon, or by reason of any circumstance, action, cause or thing whatsoever which arises at any time on or prior to the day and date of
this Amendment, including, without limitation, for or on account of, or in relation to, or in any way in connection with the Credit Agreement or any of the other Loan Documents or transactions thereunder or related thereto. 
  
 (b) Each Credit Party understands, acknowledges and agrees that its release
set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release.

  
 (c) Each Credit Party agrees that no fact, event,
circumstance, evidence or transaction which could now be asserted or which may hereafter be discovered shall affect in any manner the final, absolute and unconditional nature of the release set forth above. 
  
 6.7 Covenant Not to Sue. Each Credit Party, on behalf of itself and
its successors, assigns, and other legal representatives, hereby absolutely, unconditionally and irrevocably, covenants and agrees with and in favor of each Releasee that it will not sue (at law, in equity, in any regulatory proceeding or otherwise)
any Releasee on the basis of any Claim released, remised and discharged by such Credit Party pursuant to Section 6.6 above. If any Credit Party or any of their respective successors, assigns or other legal representations violates the
foregoing covenant, each Credit Party, for themselves and their successors, assigns and legal representatives, jointly and severally agree to pay, in addition to such other damages as any Releasee may sustain as a result of such violation, all
attorneys’ fees and costs incurred by any Releasee as a result of such violation. 
  

 7 

 6.8 Severability. Any provision of this Amendment held by a court of competent jurisdiction
to be invalid or unenforceable shall not impair or invalidate the remainder of this Amendment. 
  
 6.9 Reviewed by Attorneys. Each Credit Party represents and warrants to Agent and the Lenders that it (a) understands fully the terms of
this Amendment and the consequences of the execution and delivery of this Amendment, (b) has been afforded an opportunity to have this Amendment reviewed by, and to discuss this Amendment and document executed in connection herewith with, such
attorneys and other persons as such Credit Party may wish, and (c) has entered into this Amendment and executed and delivered all documents in connection herewith of its own free will and accord and without threat, duress or other coercion of any
kind by any Person. The parties hereto acknowledge and agree that neither this Amendment nor the other documents executed pursuant hereto shall be construed more favorably in favor of one than the other based upon which party drafted the same, it
being acknowledged that all parties hereto contributed substantially to the negotiation and preparation of this Amendment and the other documents executed pursuant hereto or in connection herewith. 
  
 6.10 Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND
SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES. 
  
 6.11 Counterparts. This Amendment may be executed in any number of counterparts, but all of such counterparts shall together constitute but
one and the same agreement. 
  
 (Signature Pages to Follow)

  

 8 

 IN WITNESS WHEREOF, this Amendment is executed and delivered as of the day and year first
above written. 
  

			
	 BORROWERS:
 FAMILYMEDS,
INC.,
 VALLEY DRUG COMPANY, and
 VALLEY DRUG COMPANY SOUTH

		
	By:	 	 /s/ Edgardo A. Mercadante

	Name:	 	Edgardo A. Mercadante
	Title:	 	 President & Chief Executive Officer of each
 of the
above-named entities

	 	 	 
	
	 GENERAL ELECTRIC CAPITAL
 CORPORATION, as Agent and Lender

	 	 	 
		
	By:	 	 /s/ Steven Wagnblas

	Name:	 	Steven Wagnblas
	Title:	 	Its Duly Authorized Signatory
	
	 BANK OF AMERICA, N,A., as Lender

		
	By:	 	 /s/ Robert Scalzitti

	Name:	 	Robert Scalzitti
	Title:	 	Vice President

  

 9 

 The following Persons are signatories to this Amendment in their capacities as Credit Parties and not as
Borrowers. The undersigned Credit Parties hereby acknowledge and consent to, and agree to the terms of, the foregoing Amendment and Waiver, and ratify and confirm their respective obligations under each of the Loan Documents. 
  
 This March 22, 2005. 
  

			
	DRUGMAX, INC.
		
	 By:
	 	 /s/ Edgardo A. Mercadante

	 Name:
	 	Edgardo A. Mercadante
	 Title:
	 	President & Chief Executive Officer
	
	FAMILYMEDS HOLDINGS, INC.
		
	 By:
	 	 /s/ Edgardo A. Mercadante

	 Name:
	 	Edgardo A. Mercadante
	 Title:
	 	President
	
	ARROW PRESCRIPTION LEASING CORP.
		
	 By:
	 	 /s/ Edgardo A. Mercadante

	 Name:
	 	Edgardo A. Mercadante
	 Title:
	 	President & Chief Executive Officer

  

 10Retention Agreement dated as of April 12, 2005 / Merrill J. Forgotson

 Exhibit 10.1 
  
 NEWALLIANCE BANK 
  
 RETENTION AGREEMENT 
  
 This Retention Agreement (this “Agreement”) is made and entered into as of the 12th of April 2005, by and between Cornerstone Bancorp, Inc., a
Connecticut corporation (“Cornerstone”), Cornerstone Bank, a Connecticut bank and a wholly owned subsidiary of Cornerstone, NewAlliance Bank, a Connecticut savings bank (the “Bank”), and Merrill J. Forgotson (the
“Executive”). 
  
 W I T N E S S E T H: 
  
 WHEREAS, NewAlliance Bancshares, Inc., a Delaware corporation and the parent
company of the Bank (the “Company”), the Bank, Cornerstone and Cornerstone Bank have entered into an Agreement and Plan of Merger dated as of April 12, 2005, whereby, among other things, Cornerstone will merge with and into the Company
(the “Merger”); 
  
 WHEREAS, the Executive is currently
the President and Chief Executive Officer of Cornerstone and the Chairman of the Board and Chief Operating Officer of Cornerstone Bank; 
  
 WHEREAS, Cornerstone, Cornerstone Bank and the Executive entered into an employment agreement dated as of November 27, 2000 (the “Cornerstone
Employment Agreement”), which is being superseded by this Agreement; 
  
 WHEREAS, the Bank desires to retain the services of the Executive after the Effective Date of the Merger; and 
  
 WHEREAS, the Executive is willing to serve the Bank (referred to herein as the “Employer”) on the terms and conditions hereinafter set forth;

  
 NOW, THEREFORE, in consideration of the foregoing, the mutual
covenants and agreements herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Bank and the Executive hereby agree as follows: 
  
 1. Definitions. 
  
 (a) Accrued Benefits means: 
  

(i) all salary earned or accrued through the date the Executive’s employment is terminated based on the Executive’s base
salary as in effect as of the date of this Agreement; 
  
 (ii) reimbursement for any and all monies advanced in connection with the Executive’s employment for documented, reasonable and necessary expenses incurred in the ordinary course of business, by the Executive through the date the
Executive’s employment is terminated; 

 (iii) any and all other compensation previously earned by the Executive and deferred
under or pursuant to any deferred compensation plan or plans of the Bank then in effect together with any interest or deemed earnings thereon pursuant to, and to the extent consistent with, the terms of such plan or plans; and 
  
 (iv) to the extent not previously paid or provided to the
Executive, all other payments and benefits to which the Executive may be entitled under the terms of any applicable compensation or benefit plan, program or arrangement of the Employer in which the Executive is a participant, except for any
severance plan, and except for any plan, program or arrangement that would result in any duplication of benefits. 
  
 (b) Affiliate of any specified person means any other person that, directly or indirectly, through one or more intermediaries, controls, or is
controlled by, or is under direct or indirect common control with such specified person. For the purposes of this definition, “control” means the possession, direct or indirect, of the power to direct or cause the direction of the
management and policies of a person, whether through the ownership of voting securities, by contract or otherwise, and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
  
 (c) Bank Board means the Board of Directors of the Bank. 

 
 (d) Base Amount means an amount equal to the Executive’s
Annualized Includable Compensation for the Base Period as defined in Sections 280G(d)(1) and (2) of the Code (as hereinafter defined). 
  
 (e) Bonus (whether or not capitalized) means any bonus to which the Executive is entitled pursuant to the terms of this Agreement. 
  
 (f) Cause means a discharge because the Bank Board determines that the
Executive has: (A) willfully failed to perform his assigned duties under this Agreement, other than any failure resulting from the Executive’s incapacity due to physical or mental injury or illness; (B) committed an act involving moral
turpitude in the course of his employment with the Employer and its subsidiaries, affiliates or predecessors; (C) engaged in willful misconduct; (D) breached his fiduciary duties for personal profit; (E) willfully violated, in any material respect,
any law, rule or regulation (other than traffic violations or similar offenses), written agreement or final cease-and-desist order with respect to his performance of services for the Bank, as determined by the Bank Board in good faith; or (F)
materially breached the terms of this Agreement and failed to cure such material breach during a 15-day period following the date on which the Bank Board gives written notice to the Executive of the material breach. For purposes of the definition of
Cause, no act or failure to act, on the part of the Executive, shall be considered “willful” unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive’s action or omission
was in the best interests of the Employer. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Bank Board or based upon the written advice of 
  

 2 

 counsel for the Employer shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith
and in the best interests of the Employer. The cessation of employment of the Executive shall not be deemed to be for “Cause” within the meaning of this Section 1(f) unless and until there shall have been delivered to the Executive a copy
of a resolution duly adopted by the affirmative vote of three-fourths of the members of the Bank Board at a meeting of such Board called and held for such purpose (after reasonable notice is provided to the Executive and the Executive is given an
opportunity, together with counsel, to be heard before such Board), finding that, in the good faith opinion of such Board, the Executive is guilty of the conduct described in this Section 1(f), and specifying the particulars thereof in detail.

  
 (g) Code means the Internal Revenue Code of 1986, as
amended. 
  
 (h) Disability means that the Executive (i) is
unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or
(ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period
of not less than three months under an accident and health plan covering employees of the Bank. 
  
 (i) Effective Date means the date on which the Effective Time (as defined in the Merger Agreement) occurs, except that Section 4(a) hereof shall be
effective immediately. 
  
 (j) Good Reason shall mean the
occurrence of any of the following events during the Retention Period: 
  
 (i) the failure of the Bank Board to appoint or re-appoint the Executive to the positions with the Bank stated in Section 3 of this Agreement; 
  
 (ii) the expiration of a 30-day period following the date on which the Executive gives written notice to the
Employer of its material failure, whether by amendment of the Certificate of Incorporation or Bylaws of the Bank, or by action of the Bank Board, the Bank’s shareholder(s), or otherwise, to vest in the Executive the functions, duties or
responsibilities prescribed in Section 3 of this Agreement, unless, during such 30-day period, the Employer cures such failure; 
  
 (iii) the expiration of a 30-day period following the date on which the Executive gives written notice to the Employer of its material
breach of any term, condition or covenant contained in this Agreement (including, without limitation, any reduction of the Executive’s rate of Base Salary in effect from time to time), unless, during such 30-day period, the Employer cures such
failure; 
  
 (iv) a Board approved change in the
Executive’s principal place of employment by a distance in excess of 50 miles from the Executive’s primary office location at the time of the Effective Date; 
  

 3 

 (v) an adverse change in the Executive’s title and position from that set forth in
Section 3; 
  
 (vi) an adverse material change in
the Executive’s duties, responsibilities and authorities as prescribed in Section 3; or 
  
 (vii) the liquidation, dissolution, bankruptcy or insolvency of the Company or the Bank. 
  
 (k) Merger Agreement means the Agreement and Plan of Merger, dated as
of April 12, 2005, among the Company, the Bank, Cornerstone and Cornerstone Bank. 
  
 (l) Merger Agreement Date means the date upon which the Merger Agreement was executed by the parties thereto. 
  
 (m) Notice of Termination means a notice which shall indicate the specific termination provision relied upon in this Agreement and shall set forth
in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive’s employment under the provision so indicated. 
  
 (n) Retention Period means a period commencing on the Effective Date and ending on the 12-month anniversary of the date on which the Effective Time
(as defined in the Merger Agreement) occurs, provided that if the Executive’s employment is terminated in accordance with the terms of this Agreement prior to such anniversary date, the Retention Period shall end concurrently with the
termination of the Executive’s employment. 
  
 (o)
Retirement means a termination of the Executive’s employment on account of resignation by the Executive at or after age sixty-five (65), other than a resignation for Good Reason. 
  
 (p) SERP Agreement means the Salary Continuation Agreement between the
Executive and Cornerstone Bank, adopted on or about June 6, 2002 and effective as of April 1, 2002. 
  
 (q) 401(k) Plan means the NewAlliance Bank 401(k) Plan as amended, or any successor plan. 
  
 2. Term of Agreement. 
  
 The term of this Agreement shall begin on the Effective Date and shall terminate on the 12-month anniversary of such date,
unless sooner terminated in accordance with the terms of this Agreement. If the Effective Date does not occur, this Agreement shall be null and void ab initio, except for Section 4(a) hereof unless this Agreement is terminated prior to the time the
payment pursuant to Section 4(a) hereof is made. Nothing in this Agreement shall be deemed to prohibit the Employer at any time from terminating the Executive’s employment during the Retention Period with or without notice for any reason,
provided, however, that the relative rights and obligations of the Employer and the Executive in the event of any such termination, including any requirements with respect to prior notice of such termination, shall be determined under this
Agreement. 
  

 4 

 3. Positions and Duties. 
  

Throughout the Retention Period, the Executive shall serve as the Senior Vice President of the Employer in charge of business banking in the Fairfield
Region, and shall report directly to the Executive Vice President - Business Banking of the Employer. His duties and responsibilities shall include such duties as are customarily associated with such position. The Executive shall devote his full
business time, attention, skills and efforts (other than during holidays, vacation periods, and periods of illness or approved leaves of absence) to the business and affairs of the Employer and shall use his best efforts to advance the interests of
the Employer. 
  
 4. Compensation. 
  
 (a) On December 30, 2005 and in consideration for the Executive executing
the General Release attached hereto as Exhibit A in a timely manner so that it is effective and irrevocable prior to the date of such payment, Cornerstone or Cornerstone Bank shall pay to the Executive a lump sum cash amount equal to $1,084,891,
minus applicable withholding, so that the full amount of such payment is included in the Executive’s taxable income for 2005. 
  
 (b) During the Retention Period, the Executive shall be compensated by the Bank as follows: 
  
 (i) The Executive shall receive, at such intervals and in accordance with the Employer’s customary payroll practices
from time to time, a base salary at a rate of $180,000 per annum (“Base Salary”). The Bank Board may, in its sole discretion, increase the Base Salary, but in no event may the Base Salary be decreased without the Executive’s prior
written consent; 
  
 (ii) During the Retention Period, the
Executive shall not be entitled to participate in the Bank’s Executive Short Term Incentive Plan or any other incentive compensation or bonus plans, except that the Bank may elect in its sole discretion to pay a bonus to the Executive; and

  
 (iii) The Executive shall be entitled to participate in the
medical, dental, short-term and long-term disability, life, and accidental death and dismemberment policies offered by the Bank to its employees. In addition, the Executive shall be eligible to participate in the Bank’s 401(k) Profit Sharing
Plan, the Bank’s defined benefit pension plan and the Company’s Employee Stock Ownership Plan (“ESOP”) in accordance with the plan documents. The Executive shall not receive credit for service with Cornerstone or any of its
subsidiaries (or any predecessors to such entities) under any existing employee benefit plan of the Company or the Bank for any purposes, except as set forth below. With respect to the Bank’s defined benefit pension plan and the Company’s
ESOP, the Executive shall be credited with service as a Cornerstone Bank employee for purposes of determining eligibility 
  

 5 

 to participate under such plan (but not for purposes of benefit accrual or vesting). With respect to any Bank plan which
is a health, life or disability insurance plan, the Executive shall be credited with service as a Cornerstone Bank employee for purposes of determining eligibility under such plans and shall not be subject to any pre-existing condition limitation
for conditions under such plans, and each such plan which provides health insurance benefits shall honor any deductible and out-of-pocket expenses incurred by the Executive under any comparable Cornerstone Bank plan for the plan year in which the
Effective Time occurs. 
  
 (c) The Executive shall be entitled to
paid holidays and sick leave consistent with the Bank’s policy for officers as in effect from time to time. The Executive may not carry over vacation days from one fiscal year to another, or be paid extra for unused vacation days, except with
the approval of the Bank Board. 
  
 (d) The Executive shall not be
entitled to receive any specific level of grants under any stock option plan or restricted stock plan to be adopted by the Company. Any grants that may be made to the Executive under any of such plans will be subject to the sole discretion of the
Board of Directors of the Company or the committee administering such plans. 
  
 (e) During the Retention Period, the Employer shall reimburse the Executive for his ordinary and necessary business expenses attributable to the Employer’s business, including, without limitation, the
Executive’s travel expenses incurred in connection with the performance of his duties for the Employer under this Agreement, in each case upon presentation to the Employer of an itemized account of such expenses in such form as the Employer may
reasonably require and subject to the approval of the Employer. In addition, during the Retention Period, the Employer shall (i) reimburse the Executive or directly pay on behalf of the Executive the club membership dues and assessments for those
clubs paid for by Cornerstone Bank as of the date of this Agreement, provided that the aggregate amount of such payments shall not exceed $15,000 per year, and (ii) provide the Executive with the continued use of an automobile of the same make, year
and model as provided by Cornerstone Bank to the Executive as of the date of this Agreement, with the Bank paying the costs for fuel, insurance, maintenance and repairs of the automobile during the Retention Period. In addition, at the end of the
Retention Period, the Executive may - in his sole discretion - purchase such automobile from NewAlliance Bank at the then dealer blue book value of such automobile. 
  
 5. Non-Competition Provisions. 
  
 The Executive agrees that during the 18-month period immediately following the Effective Date of the Merger (the “Non-Competition Period”), the
Executive will not (i) without the prior written consent of the Bank, engage in, become interested in, directly or indirectly, as a sole proprietor, as a partner in a partnership, or as a shareholder in a corporation, or become associated with, in
the capacity of employee, director, officer, principal, agent, trustee or in any other capacity whatsoever, any enterprise or entity located in any of Fairfield, Hartford, Litchfield, Middlesex, New Haven, New London, Tolland or Windham Counties in
the State of Connecticut or Kent, Providence or Washington Counties in the State of Rhode Island (collectively, the “Counties” and individually a “County”) or in the New York, New York Primary Metropolitan Statistical Area
(“PMSA”), which proprietorship, 
  

 6 

 partnership, corporation, enterprise or other entity is, or may be deemed to be by the Bank, competitive with any
business carried on by the Company, the Bank or any of their subsidiaries, including, but not limited to entities which lend money and take deposits (in each case, a “Competing Business”), provided, however, that this provision shall not
prohibit the Executive from owning bonds, non-voting preferred stock or up to five percent (5%) of the outstanding common stock of any Competing Business if such common stock is publicly traded, (ii) solicit or induce, or cause others to solicit or
induce, any employee of NewAlliance or any of its subsidiaries to leave the employment of such entities, or (iii) solicit (whether by mail, telephone, personal meeting or any other means, excluding general solicitations of the public that are not
based in whole or in part on any list of customers of the Company or any of its subsidiaries) any customer of NewAlliance or any of its subsidiaries to transact business with any other entity, whether or not a Competing Business, or to reduce or
refrain from doing any business with NewAlliance or its subsidiaries, or interfere with or damage (or attempt to interfere with or damage) any relationship between NewAlliance or its subsidiaries and any such customers. In the event the Executive
desires to join a Competing Business and requests the written consent of the Bank to permit him to do so during the Non-Competition Period, the Executive shall provide the President and Chief Executive Officer of the Bank with the identity of the
Competing Business, the nature of his proposed position, duties and responsibilities with such entity, and such other information as may be reasonably requested by the Bank within fifteen (15) days of receiving such request. The Bank agrees to
consider and review any such request (provided that no more than one request may be submitted within any 45 day period), and to notify the Executive of its determination within thirty (30) days of receiving the information requested pursuant to the
preceding sentence. 
  
 6. Termination of Employment. 
  
 Any termination by the Employer or the Executive of the Executive’s
employment during the Retention Period shall be communicated by written Notice of Termination to the Executive if such notice is delivered by the Employer, and to the Employer if such notice is delivered by the Executive. Any payments made under
this Section 6, other than due to death, shall be contingent on the Executive’s prior execution and non-revocation of a mutual release substantially in the form attached hereto as Exhibit A (with Cornerstone and Cornerstone Bank deleted as
parties thereto and with the December 29, 2005 dates in Section 1(a) and 3(a) thereof changed to the date of termination); provided, however, that if the Employer refuses to execute such mutual release, the Executive’s obligation to execute and
not revoke the release as a precondition to receiving severance benefits shall terminate. The Notice of Termination shall comply with the requirements of Section 16 below and shall specify which section of this agreement is the basis for such
termination, including a listing of any relevant facts in support thereof. 
  
 (a) Termination for Disability Prior to the End of the Retention Period. If during the Retention Period, the Executive’s employment is terminated on account of the Executive’s Disability, the
Executive shall receive (i) any Accrued Benefits, with any payments pursuant to a deferred compensation plan or other benefit plan, program or arrangement covered by Sections 1(a)(iii) or (iv) of this Agreement (the “Accrued Plan
Benefits”) to be made in such amounts and at such times as provided by the applicable plan, and (ii) the benefits payable to him under the SERP Agreement in the amounts and at the times set forth therein, provided that none of the events
specified in Article 5 of the SERP Agreement have occurred (the 
  

 7 

 “SERP Benefits”). In addition, the Executive shall continue to be covered under the Employer’s medical,
dental, accident, and life insurance coverage, with the Executive responsible for paying the employee share of any premiums, copayments or deductibles and with the accident and life insurance coverage subject to the maximum coverage limits in the
current policies of Cornerstone Bank, until the earlier of (I) thirty-six (36) months following termination of employment, or (II) the date the Executive has commenced new employment and has thereby become eligible for comparable benefits; provided
that, with respect to any of the coverages described above, if such coverage is provided through an insurance policy with an insurance company unaffiliated with the Employer and if under the terms of the applicable policy, it is not possible to
provide continued coverage, the Employer shall pay the Executive a lump sum cash amount, no later than thirty (30) days following termination of employment, equal to the Employer’s then estimated share of the cost of such coverage as applicable
immediately prior to termination of employment, with such payment to be discounted to present value using the discount rates that would be applicable under Section 280G of the Code (the “Medical Benefits”). 
  
 (b) Termination due to the Executive’s Death or Retirement Prior to
the End of the Retention Period. If, during the Retention Period, the Executive’s employment is terminated on account of the Executive’s death or Retirement, the Executive (or the Executive’s estate or designated beneficiary (or
beneficiaries), as applicable) shall receive (i) any Accrued Benefits, with any Accrued Plan Benefits to be made in such amounts and at such times as provided by the applicable plan, and (ii) the SERP Benefits. In addition, medical and dental
coverage shall be provided to the Executive’s spouse and dependents, to the extent covered at the time of the Executive’s death, for a period ending with the last day of the calendar month in which occurs the second anniversary of the
Executive’s death. 
  
 (c) Voluntary Termination or
Termination for Cause Prior to the End of the Retention Period. If, during the Retention Period, (i) the Executive shall terminate employment with the Employer other than for Good Reason, or (ii) the Executive’s employment is terminated for
Cause, the Executive shall receive from the Employer only (A) the Accrued Benefits, with any Accrued Plan Benefits to be made in such amounts and at such times as provided by the applicable plan, and (B) the SERP Benefits. 
  
 (d) Termination by the Employer Without Cause or by the Executive for Good
Reason Prior to the End of the Retention Period. If, during the Retention Period, the Executive’s employment with the Employer is terminated by the Employer other than for Cause, or by the Executive for Good Reason, then the Executive shall
receive from the Employer (i) the Accrued Benefits, with any Accrued Plan Benefits to be made in such amounts and at such times as provided by the applicable plan, (ii) the SERP Benefits, (iii) the Medical Benefits, and (iv) the salary and bonus
that would have been paid to the Executive if he had remained employed through the original expiration date of the Retention Period. 
  
 (e) Termination After the Retention Period. In the event that the Executive ceases to be employed by the Employer for any reason at or following
the end of the Retention Period (other than by reason of a termination of the Executive’s employment by the Employer for Cause), the Executive shall be entitled to the SERP Benefits and the Medical Benefits; provided, however, that with respect
to the definition of Medical Benefits in Section 6(a) hereof, the reference to “thirty-six (36) months” in clause (I) of Section 6(a) shall be reduced for purposes of this Section 6(e) by one month for each full month that the Executive
remains employed by the Employer following the end of the Retention Period. 
  

 8 

 (f) The Employer agrees that Cornerstone Bank and the Executive may amend the SERP to (i) change the
phrase “Termination of Employment” in Section 5.3 of the SERP to “the effective time of the merger between Cornerstone Bancorp, Inc. and NewAlliance Bancshares, Inc. pursuant to the Agreement and Plan of Merger dated April 12,
2005” so that the 18-month noncompetition period in Section 5.3 of the SERP shall run concurrently with the Non-Competition Period, and (ii) bring it into compliance with Section 409A of the Code, provided that the Employer and its counsel
shall have an appropriate opportunity to review and comment on such amendment prior to its adoption. Provided that the Executive consents to any amendment to the SERP Agreement that may be deemed necessary or appropriate by the Employer to comply
with Section 409A of the Code, the Employer agrees not to take any action, without the prior written consent of the Executive, that would result in any penalty tax or interest being owed by the Executive under Section 409A(a)(1)(B) of the Code with
respect to the Executive’s benefits under the SERP Agreement. 
  
 7.
Certain Supplemental Payments by the Employer. 
  
 (a) In
the event that it is determined that part or all of the compensation and benefits to be paid to the Executive, whether or not payable hereunder, (i) constitute “parachute payments” under Section 280G of the Code (the “Payments”),
and (ii) equal or exceed three (3) times the Executive’s Base Amount, the Employer, on or before the date for payment of the excise tax imposed under Section 4999 of the Code, shall pay to or on behalf of the Executive, in a single lump sum, an
amount (the “Gross-Up Amount”) such that, after payment of all federal, state and local income tax and any additional excise tax under Section 4999 of the Code in respect of the Gross-Up Amount payment, the Executive will be fully
reimbursed for the amount of such excise tax. 
  
 (b) The
determination of the Payments, the Base Amount and the Gross-Up Amount, as well as any other calculations necessary to implement this Section 7 shall be made by counsel to the Employer, with such counsel’s fee to be paid by the Employer.

  
 (c) As promptly as practicable following the above
determinations, the Employer shall pay to or distribute to or for the benefit of the Executive such amounts as are then due to the Executive under this Agreement and shall promptly pay to or distribute for the benefit of the Executive in the future
such amounts as become due to the Executive under this Agreement. 
  
 (d) As a result of the uncertainty in the application of Section 280G of the Code at the time of an initial determination hereunder, it is possible that payments will not have been made by the Employer which should have been made under
clause (a) of this Section 7 (“Underpayment”). In the event that there is a final determination by the Internal Revenue Service, or a final determination by a court of competent jurisdiction, that an Underpayment has been made and the
Executive thereafter is required to make any payment of an excise tax, income tax, any interest or penalty, the firm selected under clause (b) above shall determine the amount of the Underpayment that has occurred and any such Underpayment shall

  

 9 

 be promptly paid by the Employer to or for the benefit of the Executive. If and to the extent that the Executive receives
any tax refund from the Internal Revenue Service that is attributable to payments by the Employer pursuant to this Section 7 of amounts in excess of the actual Gross-Up Amount as finally determined by the Internal Revenue Service or a court of
competent jurisdiction (“Overpayment”), the Executive shall promptly pay to the Employer the amount of such refund that is attributable to the Overpayment (together with any interest paid or credited thereon after taxes applicable
thereto); provided, however, the Executive shall not have any obligation to pay the Employer any amount pursuant to this Section 7(d) if and to the extent that any such obligation would cause the arrangement to be treated as a loan or extension of
credit prohibited by applicable law. 
  
 8. Confidentiality. 
  
 Unless he obtains the prior written consent of the Employer, the Executive
shall at all times, both during and following the Retention Period, keep confidential and shall refrain from using for the benefit of himself, or any person or entity other than the Employer or its subsidiaries or affiliates, any material document
or information obtained from the Employer or its subsidiaries, affiliates or predecessors, in the course of his employment with any of them concerning their properties, operations or business (unless such document or information is readily
ascertainable from public or published information or trade sources or has otherwise been made available to the public through no fault of his own) until the same ceases to be material (or becomes so ascertainable or available); provided, however,
that nothing in this Section 8(a) shall prevent the Executive, with or without the Employer’s consent, from participating in or disclosing documents or information in connection with any judicial or administrative investigation, inquiry or
proceeding or the Company’s public reporting requirements to the extent that such participation or disclosure is required under applicable law. 
  
 9. Equitable Relief. 
  
 The Executive acknowledges and agrees that in the event of a breach by Executive of any of the provisions of Section 8 hereof, the Employer may suffer
irreparable harm for which monetary damages alone will constitute an insufficient remedy. Consequently, in the event of any such breach, the Employer may, in addition to other rights and remedies existing in its favor, apply to any court of law or
equity of competent jurisdiction for specific performance and/or injunctive or other relief in order to enforce or prevent any violations of the provisions hereof, in each case without the requirement of posting a bond or proving actual damages.

  
 10. Payment Obligations Absolute. 
  
 The Employer’s obligation during and after the Retention Period to pay
the Executive the compensation and to make the arrangements provided herein shall be absolute and unconditional and shall not be affected by any circumstances, including, without limitation, any setoff, counterclaim, recoupment, defense or other
right which the Employer may have against the Executive or anyone else. All amounts payable by the Employer hereunder shall be paid without notice or demand. Each and every payment made hereunder by the 
  

 10 

 Employer shall be final and the Employer will not seek to recover all or any part of such payment from the Executive or
from whomsoever may be entitled thereto, for any reason whatever except as provided in Section 7(d) above. In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to
the Executive under any of the provisions of this Agreement, and such amounts (other than the Medical Benefits) shall not be reduced whether or not the Executive obtains other employment. 
  
 11. Successors. 
  
 (a) The Employer will require any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Employer, by agreement in form and substance satisfactory to the Executive, expressly, absolutely and unconditionally to assume and agree to perform this Agreement in the same manner and to the
same extent that the Employer would be required to perform it if no such succession or assignment had taken place. Any failure of the Employer to obtain such agreement prior to the effectiveness of any such succession or assignment shall be a
material breach of this Agreement and shall entitle the Executive to terminate the Executive’s employment for Good Reason. 
  
 (b) This Agreement and all rights of the Executive shall inure to the benefit of and be enforceable by the Executive’s personal or legal
representatives, estates, executors, administrators, heirs and beneficiaries. All amounts payable to the Executive hereunder shall be paid, in the event of the Executive’s death, to the Executive’s estate, heirs and representatives. Except
as provided in this Section 11, no party may assign this Agreement or any rights, interests, or obligations hereunder without the prior written approval of the other party. Subject to the preceding sentence, this Agreement shall be binding upon and
shall inure to the benefit of the parties hereto and their respective successors and permitted assigns pursuant to Section 11(a). This Agreement shall not be terminated by the voluntary or involuntary dissolution of the Employer. In addition,
Sections 1, 5, 6, 7, 8, 9, 10, 12, 13, 15, 16, 19 and 21 shall survive the termination of this Agreement to the extent necessary to give effect to the terms thereof. 
  
 12. Severability and Enforcement. 
  
 (a) It is the intention of the parties hereto that the provisions of this Agreement shall be enforced to the fullest extent permissible under all
applicable laws and public policies, but that the unenforceability or the modification to conform with such laws or public policies of any provision hereof shall not render unenforceable or impair the remainder of the Agreement. The covenants in
Section 5 of this Agreement with respect to the Counties and the PMSA shall be deemed to be separate covenants with respect to each County and PMSA, and should any court of competent jurisdiction conclude or find that this Agreement or any portion
is not enforceable with respect to any of the Counties or PMSA, such conclusion or finding shall in no way render invalid or unenforceable the covenants herein with respect to any other County or PMSA. Accordingly, if any provision shall be
determined to be invalid or unenforceable either in whole or in part, this Agreement shall be deemed amended to delete or modify as necessary the invalid or unenforceable provisions to alter the balance of this Agreement in order to render the same
valid and enforceable. 
  

 11 

 (b) The Executive acknowledges that NewAlliance and NewAlliance Bank would not have entered into the
Merger Agreement or intend to consummate the Merger unless the Executive had, among other things, entered into this Agreement. Any breach of Sections 5 or 8 of this Agreement will result in irreparable damage to NewAlliance and NewAlliance Bank for
which NewAlliance and NewAlliance Bank will not have an adequate remedy at law. In addition to any other remedies and damages available to NewAlliance and NewAlliance Bank, the Executive further acknowledges that NewAlliance and NewAlliance Bank
shall be entitled to seek injunctive relief hereunder to enjoin any breach of Sections 5 or 8 of this Agreement, and the parties hereby consent to any injunction issued in favor of NewAlliance and NewAlliance Bank by any court of competent
jurisdiction, without prejudice to any other right or remedy to which NewAlliance and NewAlliance Bank may be entitled. The Executive represents and acknowledges that, in light of his experience and capabilities, the Executive can obtain employment
with other than a Competing Business or in a business engaged in other lines and/or of a different nature than those engaged in by NewAlliance or its subsidiaries or affiliates, and that the enforcement of a remedy by way of injunction will not
prevent the Executive from earning a livelihood. In the event of a breach of this Agreement by the Executive, the Executive acknowledges that in addition to or in lieu of NewAlliance or NewAlliance Bank seeking injunctive relief, NewAlliance or
NewAlliance Bank may also seek to recoup any or all amounts paid by NewAlliance or NewAlliance Bank to the Executive pursuant to Section 4 hereof. Each of the remedies available to NewAlliance and NewAlliance Bank in the event of a breach by the
Executive shall be cumulative and not mutually exclusive. 
  
 13.
Amendment. 
  
 This Agreement may not be amended or
modified at any time except by a written instrument executed by the parties prior to the Effective Time of the Merger and thereafter by the Employer and the Executive; provided, however, that if the Bank Board determines, after a review of Section
409A of the Code and all applicable Internal Revenue Service guidance, that this Agreement should be amended to comply with Section 409A of the Code, the Bank Board may amend this Agreement to make any changes required to comply with Section 409A of
the Code. 
  
 14. Withholding. 
  
 The Employer shall be entitled to withhold from amounts to be paid to the
Executive hereunder any federal, state or local withholding or other taxes, or charge which it is from time to time required to withhold. The Employer shall be entitled to rely on an opinion of counsel if any question as to the amount or requirement
of any such withholding shall arise. 
  
 15. Dispute Resolution.

  
 (a) In the event of any dispute, claim, question or
disagreement arising out of or relating to this Agreement or the breach hereof, the parties hereto shall use their best efforts to settle such dispute, claim, question or disagreement. To this effect, they shall consult and negotiate with each
other, in good faith, and, recognizing their mutual interests, attempt to reach a just and equitable solution satisfactory to both parties. 
  

 12 

 (b) If they do not reach such a solution within a period of thirty (30) days, then the parties agree
first to endeavor in good faith to amicably settle their dispute by mediation under the Commercial Mediation Rules of the American Arbitration Association (the “AAA”), before resorting to arbitration. 
  
 (c) Thereafter, any unresolved controversy or claim arising out of or
relating to this Agreement or the breach thereof, upon notice by any party to the other, shall be submitted to and finally settled by arbitration in accordance with the Commercial Arbitration Rules (the “Rules”) of the AAA in effect at the
time demand for arbitration is made by any such party. The parties shall mutually agree upon a single arbitrator within thirty (30) days of such demand. In the event that the parties are unable to so agree within such thirty (30) day period, then
within the following thirty (30) day period, one arbitrator shall be named by each party. A third arbitrator shall be named by the two arbitrators so chosen within ten (10) days after the appointment of the first two arbitrators. In the event that
the third arbitrator is not agreed upon, he or she shall be named by the AAA. Arbitration shall occur in New Haven, Connecticut or such other location as may be mutually agreed to by the parties. 
  
 (d) The award made by all or a majority of the panel of arbitrators shall be
final and binding, and judgment may be entered based upon such award in any court of law having competent jurisdiction. The award is subject to confirmation, modification, correction or vacation only as explicitly provided in Title 9 of the United
States Code. The prevailing party shall be entitled to receive any award of pre- and post-award interest as well as attorney’s fees incurred in connection with the arbitration and any judicial proceedings related thereto. The parties
acknowledge that this Agreement evidences a transaction involving interstate commerce. The United States Arbitration Act and the Rules shall govern the interpretation, enforcement, and proceedings pursuant to this Section. Any provisional remedy
which would be available from a court of law shall be available from the arbitrators to the parties to this Agreement pending arbitration. Either party may make an application to the arbitrators seeking injunctive relief to maintain the status quo,
or may seek from a court of competent jurisdiction any interim or provisional relief that may be necessary to protect the rights and property of that party, until such times as the arbitration award is rendered or the controversy otherwise resolved.

  
 16. Notice. 
  
 Any communication required or permitted to be given under this Agreement,
including any notice, direction, designation, consent, instruction, objection or waiver, shall be in writing and shall be deemed to have been given at such time as it is delivered personally, or five days after mailing if mailed, postage prepaid, by
registered or certified mail, return receipt requested, addressed to such party at the address listed below or at such other address as one such party may by written notice specify to the other party: 
  

	
	If to the Executive:
	
	Merrill J. Forgotson
	At the address last appearing
	on the personnel records of
	the Employer

  

 13 

	
	 If to Cornerstone and Cornerstone Bank:

	
	 Cornerstone Bancorp, Inc.

	 Cornerstone Bank

	 550 Summer Street

	 Stamford, Connecticut 06901

	
	 Attention: Chairman of the Compensation Committee of the Board

	
	 If to the Employer:

	
	 NewAlliance Bank

	 195 Church Street

	 New Haven, Connecticut 06510

	
	 (or the address of the Bank’s principal executive office, if different)

	 Attention: Chairman of the Compensation Committee of the Board

	
	 with a copy, in the case of a notice to the Employer, to:

	
	 Elias, Matz, Tiernan & Herrick L.L.P.

	 734 15th
Street, N.W.

	 Washington, D.C. 20005

	 Attention: Raymond A. Tiernan, Esq.

	                  Gerald F. Heupel, Jr.,
Esq.

  
 17. Waiver. 
  
 Failure to insist upon strict compliance with any of the terms, covenants or
conditions hereof shall not be deemed a waiver of such term, covenant or condition. A waiver of any provision of this Agreement must be made in writing, designated as a waiver, and signed by the party against whom its enforcement is sought. Any
waiver or relinquishment of any right or power hereunder at any one or more times shall not be deemed a waiver or relinquishment of such right or power at any other time or times. 
  

 14 

 18. Counterparts. 
  
 This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, and all of which shall constitute one and the same
Agreement. 
  
 19. Governing Law. 
  
 This Agreement shall be governed by and construed and enforced in accordance
with the laws of the State of Connecticut applicable to contracts entered into and to be performed entirely within the State of Connecticut, except to the extent that federal law controls. 
  
 20. Headings and Construction. 
  
 The headings of sections in this Agreement are for convenience of reference
only and are not intended to qualify the meaning of any section. Any reference to a section number shall refer to a section of this Agreement, unless otherwise stated. 
  
 21. Entire Agreement. 
  
 This instrument contains the entire agreement of the parties relating to the subject matter hereof, and supersedes in its entirety any and all prior
agreements, understandings or representations relating to the subject matter hereof including but not limited to the Cornerstone Employment Agreement. Notwithstanding anything contained herein to the contrary, this Agreement does not supersede
either (i) the SERP Agreement or (ii) the Split-Dollar Insurance Agreement between Cornerstone Bank and the Executive executed on or about December 19, 2000, as amended by the Split Dollar Insurance Amendment Agreement dated and effective as of
February 20, 2003. 
  
 22. Required Regulatory Provisions. 
  
 Notwithstanding anything herein contained to the contrary, any payments to
the Executive by the Employer, whether pursuant to this Agreement or otherwise, are subject to and conditioned upon their compliance with Section 18(k) of the Federal Deposit Insurance Act, 12 U.S.C. Section 1828(k), and the regulations promulgated
thereunder in 12 C.F.R. Part 359. 
  

 15 

 IN WITNESS WHEREOF, each of Cornerstone, Cornerstone Bank and the Bank has caused this Agreement to be
executed by it duly authorized officers and the Executive has hereunto set his hand, all as of the day and year first above written. 
  
 THIS AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE PARTIES. 
  

							
	 	 	 	 	 /s/ Merrill J. Forgotson

	 	 	 	 	Merrill J. Forgotson, Executive
		
	ATTEST:	 	NEWALLIANCE BANK
				
	By:	 	 /s/ Noel Rendell

	 	By:	 	 /s/ Merrill B. Blanksteen

	Name:	 	Noel Rendell	 	Name:	 	Merrill B. Blanksteen
	Title:	 	First Vice President and	 	Title:	 	Executive Vice President and
	 	 	Corporate Secretary	 	 	 	Chief Financial Officer
			
	[Seal]	 	 	 	 
		
	ATTEST:	 	CORNERSTONE BANCORP, INC.
				
	By:	 	 /s/ Leigh A. Hardisty

	 	By:	 	 /s/ James P. Jakubek

	Name:	 	Leigh A. Hardisty	 	Name:	 	James P. Jakubek
	Title:	 	Secretary	 	Title:	 	Executive Vice President and
	 	 	 	 	 	 	Chief Operating Officer
			
	[Seal]	 	 	 	 
		
	ATTEST:	 	CORNERSTONE BANK
				
	By:	 	 /s/ Leigh A. Hardisty

	 	By:	 	 /s/ James P. Jakubek

	Name:	 	Leigh A. Hardisty	 	Name:	 	James P. Jakubek
	Title:	 	Senior Vice President and	 	Title:	 	President and Chief Executive Officer
	 	 	Secretary	 	 	 	 
			
	[Seal]	 	 	 	 

  

 16

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]