Document:

EXECUTION COPY

 

 

Exhibit 10.32

 

SETTLEMENT AGREEMENT AND MUTUAL RELEASE

 

This Settlement Agreement and Mutual Release (this “Agreement”) is entered into as of March 12, 2007 (the “Effective Date”), by and among Sprint Nextel Corporation, a Kansas corporation, Sprint Spectrum L.P., a Delaware limited partnership, WirelessCo, L.P., a Delaware limited partnership, Sprint Communications Company L.P., a Delaware limited partnership, APC PCS, LLC, a Delaware limited liability company, PhillieCo, L.P. a Delaware limited partnership (the “Sprint Parties”), and Shenandoah Personal Communications Company, a Virginia corporation (“Shentel”), and Shenandoah Telecommunications Company, a Virginia corporation, (together with Shentel, the “Shentel Parties” and together with the Sprint Parties collectively, the “Parties”).  Capitalized terms used but not defined in this Agreement have the meanings assigned to them in
the “Schedule of Definitions” to the Management Agreement (as defined herein).

WHEREAS, Shentel entered into a Management Agreement, a Services Agreement and two Trademark and Service Mark License Agreements with certain of the Sprint Parties, dated and effective as of November 5, 1999, and a Forbearance Agreement between the Sprint Parties and Shentel, dated August 9, 2005 (each agreement, together with all addenda and amendments, being the “Management Agreement,” the “Services Agreement,” two “Trademark and Service Mark License Agreements” and the “Forbearance Agreement” and collectively, the “Sprint Agreements”); and

WHEREAS, without admitting there is a legitimate basis for any such claims, the Parties desire to resolve and release claims specified in this Agreement, whether known or unknown, that any Party might have against any of the other Parties that arose on or before the Effective Date under or with respect to the Sprint Agreements, including certain claims that arise out of any actual or claimed actions or inactions of any Party on or before the Effective Date under or with respect to the Sprint Agreements, except as provided in this Agreement.  The Parties have agreed to take the actions set forth in this Agreement to avoid the expense and delay inherent in further negotiations and possible litigation concerning their business relationship.

NOW, THEREFORE, in consideration of the mutual promises set forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Parties agree as follows:

1.        Addendum.  Certain of the Parties will execute and deliver an Addendum VII to the Management Agreement in the form attached to this Agreement as Exhibit A (the “Addendum”) contemporaneously with the Parties’ execution and delivery of this Agreement.

 

 

	
             
  	
            2.
 	
            General Releases.
 

(a)          Sprint Release of the Shentel Parties.  Except as provided in Section 3, each of the Sprint Parties releases and forever discharges the Shentel Parties and their respective officers, directors, shareholders, partners, members, subsidiaries, affiliates, predecessors, successors, employees, agents and representatives (the “Shentel Released Parties”) from all liabilities, claims, demands, suits, judgments, attorneys’ fees, damages, injuries, causes of action, and losses of any kind, known or unknown, fixed or contingent, whether at law or at equity that any of the Sprint Parties ever had, now has, may assert or may in the future claim to have against any of the Shentel Released Parties by reason of any act, failure to act,
cause or matter occurring or existing on or before the Effective Date, concerning or related to the Sprint Agreements (“Sprint’s Claims”).  For avoidance of doubt but not for purposes of limitation, this provision releases and forever discharges each of the Shentel Released Parties of and from any and all liabilities, claims, demands, suits, judgments, attorneys’ fees, damages, injuries, causes of action, and losses of any kind, known or unknown, fixed or contingent, whether at law or at equity that any of the Sprint Parties ever had, now has, may assert or may in the future claim to have against any of the Shentel Released Parties concerning or related to the Sprint Agreements or the Sprint Nextel Merger (as defined in Exhibit B) with respect to any of the matters set forth on Exhibit B to this Agreement, and waives any and all rights that any of the Sprint Parties may
have with respect to those matters (“Sprint’s Specific Claims”).

(b)          Shentel Release of the Sprint Parties.  Except as provided in Section 3, each of the Shentel Parties releases and forever discharges the Sprint Parties and their respective officers, directors, shareholders, partners, members, subsidiaries, affiliates, predecessors, successors, employees, agents and representatives (the “Sprint Released Parties”) from all liabilities, claims, demands, suits, judgments, attorneys’ fees, damages, injuries, causes of action, and losses of any kind, known or unknown, fixed or contingent, whether at law or equity that any of the Shentel Parties ever had, now has, may assert or may in the future claim to have against any of the Sprint Released Parties by reason of any act, failure to act, cause
or matter occurring or existing on or before the Effective Date concerning or related to the Sprint Agreements (“Shentel’s Claims” and together with Sprint’s Claims, the “Claims”).  For avoidance of doubt but not for purposes of limitation, this provision releases and forever discharges each of the Sprint Released Parties of and from any and all liabilities, claims, demands, suits, judgments, attorneys’ fees, damages, injuries, causes of action, and losses of any kind, known or unknown, fixed or contingent, whether at law or at equity that any of the Shentel Parties ever had, now has, may assert or may in the future claim to have against any of the Sprint Released Parties concerning or related to the Sprint Agreements or the Sprint Nextel Merger with respect to any of the matters set forth on Exhibit B to this Agreement, and waives any and all rights that any of the Shentel Parties may have with respect
to those matters (“Shentel’s Specific Claims” and together with Sprint’s Specific Claims, the “Specific Claims”).

(c)          Complete Release.  Except as provided in Sections 3 and 11(a), this Agreement constitutes the complete compromise, settlement, accord and satisfaction of all of the Claims with no reservation of any rights or claims, whether stated or implied.

 

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            3.
 	
            Exceptions to Released Claims.
 

(a)          Settlements Activity.    Neither Party is releasing its right to claims (including its right to dispute amounts) related to:

(i)           third-party invoices or other charges for which the Sprint Parties have not received invoices, which will be billed in the normal course of business, provided no such invoices or other charges will be for services or costs incurred prior to three (3) calendar months prior to execution; and 

(ii)          any costs or fees that have accrued or are otherwise due and owing and which have been properly invoiced as of December 31, 2006 or will be properly invoiced in accordance with normal practices for the period prior to December 31, 2006 from the Shentel Parties to the Sprint Parties or any Sprint PCS Related Party or from the Sprint Parties to the Shentel Parties or any Related Party of the Shentel Parties under Article 10 or Section 17.20 of the Management Agreement or Article 3 or Section 9.17 of the Services Agreement.

(b)          Future Claims.  Nothing in this Agreement constitutes a release by any Party of claims arising after the Effective Date, including without limitation future claims arising under the Management Agreement after giving effect to the Addendum.

(c)          Indemnification.  This Agreement does not modify, waive or release the parties’ rights and responsibilities under Section 13 of the Management Agreement with respect to indemnification for claims brought by third parties arising prior to the Effective Date.

4.            Representations and Warranties.  Each of the Parties represents and warrants to the other Parties that:

(a)          it has not commenced any action or proceeding against any other Party concerning any of the Claims or Specific Claims, before any agency or other governmental authority, at law, in equity, in arbitration, or otherwise;

(b)          it has the full right, power and authority to enter into this Agreement, and to perform according to the terms of this Agreement;

(c)          the Party is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization;

(d)          neither the execution, delivery and performance of this Agreement, nor the consummation by the Party of the transactions contemplated by this Agreement, will conflict with, violate or result in a breach of:

(i)           any law, regulation, order, writ, injunction, decree, determination or award of any governmental authority or any arbitrator, applicable to the Party, or

 

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(ii)          any of the terms, conditions or provisions of the certificate of limited partnership or certificate or articles of incorporation or bylaws (or other governing documents) of the Party, or

	
             
  	
            (iii)
 	
            any material agreement of the Party, or
 

(iv)         any material instrument to which the Party is or may be bound or to which any of its material properties or assets is subject;

(e)          it has obtained all necessary consents and approvals required to enter into this Agreement;

(f)           there are no actions, suits, proceedings or investigations pending or, to the knowledge of the Party, threatened against or affecting the Party or any of its properties, assets or businesses in any court or before or by any governmental agency that could, if adversely determined, reasonably be expected to have a material adverse effect on the Party’s ability to perform its obligations under this Agreement and the Addendum;

(g)          it has negotiated the terms of this Agreement, and this Agreement is the result of arms-length negotiations between the Parties and their respective attorneys; and

(h)          it has not assigned or otherwise transferred any interest in any of the Claims or Specific Claims.

5.            Covenant Not To Sue or Assist Third Parties.  Except for claims for indemnification and contribution described in Section 3(c), no Party will (a) commence or in any manner seek relief against another Party through any suit or proceeding arising, based upon, or relating to any of the Claims or Specific Claims, or (b) voluntarily become a party to any suit or proceeding arising from or in connection with an attempt by or on behalf of any third party to enforce or collect an amount based on a Claim or Specific Claim.  Nor will any Party assist the efforts of any third party attempting to enforce or collect an amount based on a Claim or Specific Claim, unless required to do so by a court of competent jurisdiction.

6.            Contract.  The Parties understand that the terms in this Agreement are binding contractual commitments and not mere recitals, and that the Parties are not relying upon any statement or representation made by any Party released, any such Party’s agents or attorneys, or any other person, concerning the nature, extent or duration of any injuries or damages, or concerning any other thing or matter, but are relying solely and exclusively upon the express terms of this Agreement and their own knowledge, belief and judgment.

7.            Expenses.  The Parties will pay their own expenses and attorneys’ fees incurred in connection with the negotiation and execution of this Agreement and the Addendum.

8.            Additional Facts.  The Parties are aware that they may discover claims or facts in addition to or different from those they now know or believe to be true with respect to Claims and Specific Claims.  Nevertheless, except as set forth in Section 3 of this Agreement, it is the intention of the Parties to fully, finally and forever settle and release all such claims, including claims for damages and losses that are presently unknown or unanticipated.  In furtherance of 

 

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this intention, the releases given in this Agreement are and will remain in effect as full and complete mutual releases of Claims and Specific Claims, except as set forth in Section 3 of this Agreement, notwithstanding the discovery or existence of any additional or different facts relative to them.  Each Party assumes the risk of any mistake in executing this Agreement and furnishing the releases set forth in this Agreement.  Without limiting the generality of the previous sentences in this Section 8, each Party waives and relinquishes any right or benefit that such Party has or may have under any provision of statutory or non-statutory law that may provide that a release does not extend to claims that a person does not know or suspect to exist at the time of execution of the release that, if known, would or may have materially affected the decision to give the release.

9.            Termination of Forbearance Agreement.  The Parties hereby agree that the Forbearance Agreement shall be terminated in all respects as of the Effective Date.

10.         Waivers.  No waiver by a Party of any breach of or default under this Agreement will be deemed to be a waiver of any other breach or default of any kind or nature of this Agreement.  No acceptance of payment or performance by a Party after any such breach or default will be deemed to be a waiver of any breach or default of this Agreement, whether or not such Party knows of such breach or default at the time it accepts such payment or performance.  No failure or delay on the part of a Party to exercise any right it may have will prevent the exercise of that right by that Party at any time the other Party continues to be in default, and no such failure or delay will operate as a waiver of any default.

	
             
  	
            11.
 	
            Enforcement of Agreement; Injunctive Relief.
 

(a)          The releases given in this Agreement do not include a release of any liabilities, claims, damages, injuries or losses that may arise under this Agreement.

(b)          Each Party waives, to the fullest extent permitted by law, the right to trial by jury in any legal proceeding arising out of or relating to the enforcement of this Agreement.

(c)          The prevailing Party will be entitled to recover from the opposing Party its expenses (including reasonable attorneys’ fees and costs) incurred in connection with any claim, action or lawsuit brought to enforce this Agreement.

12.          Assignment.  No Party may assign any of its rights under this Agreement or delegate its duties under it to any person or entity not a Party unless it obtains the prior written consent of the other Parties to this Agreement, which consent may be withheld at such other Party’s absolute discretion. 

13.          Limitation on Rights of Others.  Nothing in this Agreement, whether express or implied, will be construed to give any person other than the Parties any legal or equitable right, remedy or claim under or in respect of this Agreement.

 

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            14.
 	
            Other Provisions.
 

(a)          Governing Law.  All issues and questions concerning the construction, validity, enforcement and interpretation of this Agreement will be governed by and construed under Virginia law, without giving effect to any choice of law or conflict of law rules or provisions (whether of Virginia or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than Virginia.

	
             
  	
            (b)
 	
            Jurisdiction.
 

(i)           Each Party hereby irrevocably and unconditionally submits, for itself and its property, to the sole and exclusive jurisdiction of any state or federal court of the Commonwealth of Virginia and any appellate court from any such court, in any suit, action or proceeding arising out of or relating to this Agreement, or for recognition or enforcement of any judgment relating to this Agreement.  Each Party hereby irrevocably and unconditionally agrees that all claims in respect of any such suit, action or proceeding may be heard and determined in such Virginia court.  With respect to such suit, action or proceeding, each Party irrevocably waives, to the fullest extent permitted by law, the right to object that such court does not have jurisdiction over such party.

(ii)          Each Party hereby irrevocably and unconditionally waives, to the fullest extent it may legally do so, any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement in any state or federal court in the State of Kansas.  Each Party hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such suit, action or proceeding in any such court and further waives the right to object, with respect to such suit, action or proceeding, that such court does not have jurisdiction over such Party.

(iii)        Each Party irrevocably consents to service of process in the manner provided for the giving of notices pursuant to this Agreement, provided that such service will be deemed to have been given only when actually received by such party.  Nothing in this Agreement will affect the right of a Party to serve process in another manner permitted by law.

	
             
  	
            (c)
 	
            Notices.
 

(i)           Any notice, demand or communication required or permitted to be given by any provision of this Agreement must be in writing and mailed (certified or registered mail, postage prepaid, return receipt requested), sent by hand or overnight courier, charges prepaid or sent by facsimile (with acknowledgement received), and addressed as described below, or to any other address or number as the person or entity may from time to time specify by written notice to the other parties. All notices and other communications given to a party in accordance with the provisions of this Agreement will be deemed to have been given when received.

 

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            (ii)
 	
            For all entities comprising the Sprint Parties:  
 

	
             
 	
            Sprint PCS
 

	
             
 	
            KSOPHF0402-4B101
 

	
             
 	
            6200 Sprint Parkway
 

	
             
 	
            Overland Park, KS  66251
 

	
             
 	
            Telecopier:  913-523-2759
 

	
             
 	
            Attention: Vice President – Wireless Alliances Group
 

 

	
             
 	
            with a copy to:
 

 

	
             
 	
            Sprint Law Department
 

	
             
 	
            KSOPHT0101-Z2020
 

	
             
 	
            6391 Sprint Parkway
 

	
             
 	
            Overland Park, KS  66251
 

	
             
 	
            Telecopier:  913-523-9823
 

	
             
 	
            Email: john.w.chapman@mail.sprint.com
 

 

	
             
  	
            (iii)
 	
            For Shentel:
 

Shenandoah Personal Communications Company

500 Shentel Way

Post Office Box 459

Edinburg, Virginia  22824-0459

Telecopier:  (540) 984-8192

Attention:  Mr. Christopher E. French

	
             
 	
            Mr. Jonathan Spencer
 

 

(d)          Entire Agreement; Binding Effect.  This Agreement constitutes the entire agreement between the Parties with respect to the subject matter it covers and supersedes all prior agreements, negotiations, representations and discussions between the Parties with respect to the subject matter it covers.  This Agreement is binding on and inures to the benefit of the Parties and their respective successors and assigns.

(e)          Construction.  The Parties participated in the negotiation and drafting of this Agreement.  If any ambiguity or question of intent or interpretation arises, the Parties intend that (i) this Agreement be construed as if they had drafted it together, and (ii) no presumption or burden of proof arises favoring or disfavoring any Party by virtue of its role in drafting any provision of this Agreement.  All pronouns and any variations of pronouns used in this Agreement refer to the masculine, feminine or neuter, singular or plural as the identity of the person or persons require.

(f)           Severability.  Every provision of this Agreement is intended to be severable.  If any term or provision of this Agreement is illegal, invalid or unenforceable for any reason whatsoever, that term or provision will be enforced to the maximum extent 

 

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permissible so as to effect the intent of the Parties, and such illegality, invalidity or unenforceability will not affect the validity, legality or enforceability of the remainder of this Agreement.

(g)          Amendment.  Any amendment to this Agreement must be in a written document signed by the Parties and must state the intent of the Parties to amend this Agreement.

(h)          No Admission of Liability.  It is expressly understood and agreed that this Agreement is a compromise of disputed claims and that execution of, making of payments under, and performing of obligations under this Agreement are not to be construed as an admission of liability on the part of any Party.

(i)           Counterparts.  This Agreement may be signed in counterpart or duplicate copy and by facsimile signature, and any signed counterpart, duplicate or facsimile copy is the equivalent to a signed original for all purposes.

(j)           Reliance Upon Legal Counsel.  Each Party warrants and represents that each has relied upon its own legal counsel regarding the proper, complete, and agreed-upon consideration for, or the terms and provisions of, this Agreement, and that no statements or representations made by any other Party or any of its agents, employees, or legal counsel (other than as set forth in this Agreement) have influenced or induced it to execute this Agreement.

 

(k)          Officers Authorized To Execute The Agreement.  The Sprint Parties and Shentel Parties each warrant that its undersigned corporate officers are fully authorized to execute this Agreement in the name and on behalf of such Party and to give the Releases and make the promises contained herein.

 

[The remainder of this page is left blank intentionally.]

 

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Each Party has completely read the terms of this Agreement, fully understands them and voluntarily accepts them for the purpose of making full and final compromise, adjustment and settlement of all claims, disputed or otherwise, in accordance with the terms of this Agreement.

 

The Parties have executed this Agreement on the date first above written.

 

	  
	 

        SPRINT NEXTEL CORPORATION

        

        By: /s/ Steven M. Nielsen                              
  

      Name: Steven M. Nielsen

      Title:   Vice President 

 

 

	  
	 

        SPRINT SPECTRUM L.P.

        

        By: /s/ Steven M. Nielsen                              
  

      Name: Steven M. Nielsen

      Title:   Vice President 

 

 

	  
	 

        WIRELESSCO, L.P.

        

        By: /s/ Steven M. Nielsen                              
  

      Name: Steven M. Nielsen

      Title:   Vice President 

 

 

	  
	 

        APC PCS, LLC

        

        By: /s/ Steven M. Nielsen                              
  

      Name: Steven M. Nielsen

      Title:   Vice President 

 

 

	  
	 

        PHILLIECO, L.P.

        

        By: /s/ Steven M. Nielsen                              
  

      Name: Steven M. Nielsen

      Title:   Vice President 

 

 

 

 

	  
	 

        SPRINT COMMUNICATIONS COMPANY L.P.

        

        By: /s/ Steven M. Nielsen                              
  

      Name: Steven M. Nielsen

      Title:   Vice President 

 

 

	  
	 

        SHENANDOAH PERSONAL 
COMMUNICATIONS COMPANY

        

        By: /s/ Christopher E. French                              
  

      Name: Christopher E. French

      Title:   President 

 

 

	  
	 

        SHENANDOAH TELECOMMUNICATIONS COMPANY

        

        By: /s/ Christopher E. French                              
  

      Name: Christopher E. French

      Title:   PresidentEXHIBIT 10.11 – EMPLOYMENT AGREEMENT BETWEEN
REGISTRANT AND JOHN GRASSO

13

[THE FIRST NATIONAL BANK OF LONG ISLAND
LETTERHEAD]

January 1, 2007

Mr. John Grasso

Dear Mr. Grasso:

         This letter
employment agreement (the “Agreement”) will serve to set forth the terms and
conditions of your employment by The First of Long Island Corporation (“FLIC”),
and its subsidiary, The First National Bank of Long Island (the “Bank”), as
follows:

	
   

  	
   

  
	
  1.

  	
  TERM; RENEWAL

  

         The Initial
Term of the Agreement shall run from January 22, 2007 through and including
January 21, 2008 and, if not terminated as described below, the Agreement
shall, on January 1 of each year, automatically be extended for an additional
year, resulting in a new one-year term (the “Renewal Terms”), with such
modifications hereto as the parties shall agree in writing; provided, however,
that the Agreement shall not be so extended in the event that you or FLIC
provides written notice of non-extension to the other party no later than
October 31 of the preceding year. Notwithstanding the foregoing, FLIC may not
provide such notice of non-extension during any period of time in which the
Board of Directors of FLIC is actively negotiating a transaction the
consummation of which would constitute a Change of Control Event (as
hereinafter defined).

	
   

  	
   

  
	
  2.

  	
  CAPACITY

  

         A.      You
shall be employed in the capacity of Executive Vice President of the Bank and
such other senior executive title or titles of FLIC or the Bank as may from
time to time be determined by the Board of Directors of the Bank and FLIC. You
shall be the officer in charge of all operations of the branch system of the
Bank, with such specific duties and responsibilities as shall be assigned to
you by the Chief Executive Officer or by the Board of Directors of the Bank.
You shall be responsible to the Chief Executive Officer of FLIC and the Bank.

         B.      You
agree to devote your full time and attention and best efforts to the faithful
and diligent performance of your duties to FLIC and the Bank and shall serve
and further the best interests and enhance the reputation of FLIC and the Bank
to the best of your ability. Nothing herein shall be construed as preventing
you from serving as a member of the board of directors of any non-profit
organization. 

	
   

  	
   

  
	
  3.

  	
  COMPENSATION
  

  

         As
full compensation for your services, you shall receive the following from FLIC
or, in the discretion of FLIC, it shall cause the following to be paid or
provided by the Bank:

         A.      A
Base Annual Salary of not less than One Hundred Sixty Thousand Dollars
($160,000.00), payable bi-weekly; provided, however, that no
later than January 15 of each year that this Agreement shall remain in effect,
the Chief Executive Officer and the Board of Directors of FLIC shall review
your compensation, without any commitment, to determine whether to increase
your Base Annual Salary hereunder. In the event that the Board of Directors of
FLIC does, from time to time, increase your Base Annual Salary, the increased
amount shall be your Base Annual Salary for all purposes of this Agreement, and
such increased amount shall be the minimum amount payable hereunder.

         B.      Such
other benefits as are consistent with the personnel benefits provided by the
Bank and FLIC to its officers and employees.

         C.      The
use of an appropriate automobile furnished by the Bank.

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  4.

  	
  TERMINATION PAYMENT

  

         A.      You
will be entitled to a payment (the “Termination Payment”) equal to One Hundred
Per Cent (100%) of your then current Base Annual Salary (the dollar amount so
calculated being hereafter referred to as the “Full Severance”) and FLIC shall
make such Termination Payment to you, in the event of, and within ten (10) days
after, the occurrence of any of the following: 

                   (i)
Your employment is terminated by the Bank, provided, however, that you shall
not be entitled to receive such payment if such termination is due to gross and
substantial dishonesty on your part; or

                   (ii)
You resign your employment with the Bank for Good Reason (as hereinafter
defined) within twenty-four months after a Change of Control Event.

         B.      You
will be entitled to a Termination Payment equal to Sixty Six and Two-Thirds Per
Cent (66 2/3%) of the Full Severance in the event that you resign your
employment with the Bank for any reason during the period beginning on the
thirty-first day after a Change of Control Event (as hereinafter defined) and
ending on the sixtieth day after such event.

         C.      FLIC
may elect to discharge its obligation to make the Termination Payment by
causing the Bank, its wholly owned subsidiary, to do so.

	
   

  	
   

  
	
  5.

  	
  NON-WAIVER

  

         Your
failure to resign upon the occurrence of a particular event constituting Good
Reason hereunder shall not bar you from resigning upon the subsequent
occurrence of any other or further event constituting Good Reason, and thereby
becoming eligible to receive the Termination Payment, provided that such resignation
occurs within twenty-four months after a Change of Control Event.

	
   

  	
   

  
	
  6.

  	
  INELIGIBILITY FOR TERMINATION PAYMENT

  

         Regardless
of whether a Change of Control Event shall have occurred, you shall not be
entitled to any Termination Payment in the event that your employment is
terminated by reason of your death, normal retirement or disability.

	
   

  	
   

  
	
  7.

  	
  DEFINITIONS

  

         A.      “Good
Reason” for resignation by you of your employment shall mean the occurrence
(without your express written consent) of any one of the following acts or
omissions to act by FLIC or the Bank:

                   (i)
The assignment to you of any duties materially inconsistent with the nature and
status of your responsibilities immediately prior to a Change of Control Event,
or a substantial adverse alteration in the nature or status of your
responsibilities from those in effect immediately prior to the Change of
Control Event; provided, however, that a redesignation of your title shall not
in and of itself constitute Good Reason if your overall duties and status
within FLIC and the Bank are not substantially adversely affected.

                   (ii)
The failure by FLIC or the Bank to pay you any portion of your current
compensation, or to pay you any portion of an installment of a deferred
compensation amount under any deferred compensation program, within fourteen
(14) days of the date such compensation is due.

         B.      “Change
of Control Event” shall mean the occurrence of any one of the following:

                   (i)
Continuing Outside Directors (as hereinafter defined) no longer constitute at
least two-thirds (2/3) of Outside Directors (as hereinafter defined) of FLIC;

                   (ii)
There shall be consummated a merger or consolidation of FLIC, unless at least
two-thirds (2/3) of Continuing Outside Directors are to continue to constitute
at least two-thirds (2/3) of Continuing Directors;

                   (iii)
At least two-thirds (2/3) of Continuing Outside Directors determine that action
taken by stockholders constitutes a Change of Control Event; or

                   (iv)
The Bank shall cease to be a wholly-owned subsidiary of FLIC. 

         C.      “Continuing
Outside Director” shall mean any individual who is not an employee of FLIC
or the Bank and who (i) is a director of FLIC as of the date hereof, (ii) prior
to election as a director is nominated by at least two-thirds (2/3) of 

15

the Continuing Outside Directors, or (iii) following election as a
director is designated a Continuing Outside Director by at least two-thirds
(2/3) of Continuing Outside Directors.

         D.      “Outside
Director” shall mean an individual who is not an employee of FLIC or the
Bank who is a director of FLIC.

	
   

  	
   

  
	
  8.

  	
  INSURANCE

  

         8.1     In
the event that you shall cease to be employed by the Bank under circumstances
entitling you to receive a Termination Payment hereunder, you shall be entitled
to the following insurance coverage:

         Health
Insurance. FLIC shall, at no cost to you, continue to cover you under, or
provide you with, family medical and dental coverage subsequent to the date of
termination of your employment. Such coverage shall be continued for a period
ending on the date which is twelve (12) months after the termination date and
shall be no less favorable than your medical and dental coverage in effect on
such termination date; provided, however, that if such termination date is
subsequent to the occurrence of a Change of Control Event, the coverage to be
provided hereunder shall be no less favorable than the coverage in effect
immediately prior to the occurrence of such Change of Control Event.

         8.2     Notwithstanding
the provisions of the foregoing Section 8.1, the obligation of FLIC to provide
the health insurance coverage described therein shall cease, as to each such
policy and form of coverage, on the date when another employer makes available
to you benefits which are substantially comparable to those described in such
sections, regardless of whether the benefits made available by such employer
require a contribution on your part.

	
   

  	
   

  
	
  9.

  	
  DEATH.

  

         In the
event of your death subsequent to termination of your employment, all payments
and benefits due you hereunder shall be paid to your designated beneficiary or
beneficiaries or, if you have not designated a beneficiary or beneficiaries, to
your estate.

	
   

  	
   

  
	
  10.

  	
  NON-SOLICITATION; CONFIDENTIALITY

  

         10.1   In
consideration of the agreement by FLIC to make a Termination Payment to you
under the circumstances described in Section “4” hereof, and regardless of
whether you shall actually become entitled to receive a Termination Payment,
you agree that, for a period of two (2) years after the termination of your
employment by FLIC, you will not (i) on behalf of any banking organization or
lender doing business in New York City or in the Counties of Nassau or Suffolk,
directly or indirectly solicit the business of any person or entity which shall
be a customer of the Bank on the date of such termination or facilitate or
assist in the development of any business relationship between any such banking
organization or lender and any such customer or (ii) either directly or on
behalf of any such banking organization or lender, employ, retain, or solicit
the employment or retention of, any person who shall be an employee of the Bank
on the date of such termination.

         10.2   You
agree, without limitation as to time, to keep secret and retain in confidence
all confidential matters of FLIC and the Bank, whether developed by FLIC, the
Bank or you, including, without limitation, “know-how,” trade secrets, customer
lists, pricing policies, and operational methods, and not to disclose them to
anyone outside of FLIC or the Bank except in the course of performing your
duties hereunder or with the express written consent of FLIC.

         10.3   If
a court of competent jurisdiction determines that any covenant contained herein
is unreasonable because of its term or territorial scope, or for any other reason,
such court may reform the condition of such covenant so that it is reasonable
under the circumstances and this covenant, as reformed, shall be enforceable.         

	
   

  	
   

  
	
  11.

  	
  MISCELLANEOUS

  

         11.1   Binding
Effect; Successors. This Agreement shall be binding upon, inure to the
benefit of and be enforceable by you and us, your heirs and your and our
respective legal representatives, successors and assigns. If FLIC shall be
merged into or consolidated with another entity, the provisions hereof shall be
binding upon and inure to the benefit of the entity surviving such merger or
resulting from such consolidation. We shall require any successor (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business or assets of FLIC, by agreement in form and
substance satisfactory to you, to expressly assume and agree to perform
hereunder in the same manner and to the same extent that we would be required
to perform hereunder if no such succession had taken place. The provisions
hereof shall continue to apply to each subsequent merger, consolidation or
transfer of assets of such subsequent employer.

         11.2   Notices.
Any notices required to be given under this Agreement shall, unless otherwise
agreed to by you and us, be in writing and shall be sent by certified mail,
return receipt requested, to FLIC at 10 Glen Head Road, Glen Head, New 

16

York 11545, Attention: Board of Directors, and to you at the home
address which you have designated in writing; or at such other address as you
or we may designate in writing, respectively.

         11.3   Waiver;
Modification. No waiver or modification in whole or in part of this
Agreement, or any term or condition hereof, shall be effective against any
party unless in writing and duly signed by the party sought to be bound. Any
waiver of any breach of any provision hereof or any right or power by any party
on one occasion shall not be construed as a waiver of, or a bar to, the
exercise of such right or power on any other occasion or as a waiver of any
subsequent breach.

         11.4   Separability.
Any provision of this Agreement which is unenforceable or invalid in any
respect in any jurisdiction shall be ineffective in such jurisdiction to the
extent that it is unenforceable or invalid without affecting the remaining
provisions hereof, which shall continue in full force and effect. The
enforceability or invalidity of a provision of the Agreement in one
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

         11.5   Controlling
Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of New York applicable to contracts made and to be
performed therein.

         If this Agreement
is satisfactory to you, kindly indicate your acceptance by signing and
returning the enclosed copy thereof to the Bank.

	
   

  	
   

  	
   

  
	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
  THE FIRST OF LONG ISLAND CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ MICHAEL
  N. VITTORIO 

  
	
   

  	
   

  	
  

  
	
   

  	
   

  	
  Michael N. Vittorio, President

  
	
   

  	
   

  	
   

  
	
  Accepted and agreed to as 

  of the 22nd day of January, 2007 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ JOHN
  GRASSO

  	
   

  	
   

  
	
  

  	
   

  	
   

  
	
  John Grasso 

  	
   

  	
   

  

17

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