Document:

osw-ex41_531.htm

Exhibit 4.1

Description of Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934

 

As of March 5, 2021, OneSpaWorld Holdings Limited, a company incorporated under the laws of the Commonwealth of The Bahamas (“we,” “our,” “OneSpaWorld” or the “Company”), has two classes of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: our common shares and our warrants.  

 

The following is a brief summary of the material terms of our common shares and does not purport to be complete. For a complete description of the terms of our common shares, you should refer to our Third Amended and Restated Memorandum of Association and Second Amended and Restated Articles of Association (our “Articles”) and applicable provisions of law. Our Articles are incorporated by reference as exhibit to our Annual Report on Form 10-K to which this exhibit is a part. You should read our Articles for provisions that may be important to you. 

 

Authorized and Issued Common Shares

 

Our Articles authorize the issuance of up to 250,000,000 of our common shares, $0.0001 par value per share. As of March 5, 2021, 86,857,418 common shares were issued and outstanding.

 

Issuance and Form

 

Subject to the provisions of our Articles and to any resolution of shareholders, unissued shares will be at the disposal of our Board of Directors (our “Board”), who may without prejudice to any rights previously conferred on the holders of any existing shares or class or series of shares offer, allot, grant options over or otherwise dispose of shares to such persons, at such times and upon such terms and conditions as we may by resolution of directors determine. Pursuant to our Articles, our common shares are registered shares and may not be exchanged for bearer share certificates.

 

Voting Rights and Quorum

 

Each holder of a share of our common shares is entitled to one vote for each share held of record on the applicable record date on each matter submitted to a vote of shareholders. Our Articles do not provide for cumulative rights. 

 

Directors shall be elected by a plurality of votes of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors, unless a different vote is required by our Articles or under applicable law, in which case such express provision shall govern and control the decision of such question. Shareholders may act only at meetings duly called and shareholders may not act by written consent or otherwise outside of such meeting. A meeting of shareholders is duly constituted if, at the commencement of the meeting, there are present, in person or by proxy, shareholders representing not less than 50% of the votes of the shares or class or series of shares entitled to vote on resolutions of shareholders to be considered at the meeting. If there is a quorum, notwithstanding the fact that such quorum may be represented by only one person, then such person may resolve any matter, and a certificate signed by such person accompanied where such person be a proxy by the proxy form, or a copy thereof, shall constitute a valid resolution of shareholders. Once established, a quorum will not be broken by the subsequent withdrawal of enough votes to leave less than a quorum.

 

If shareholder approval is required (a) for the adoption of any agreement for merger of us with or into any other entity or for the consolidation of us with or into any other entity or (b) to authorize any sale, lease, exchange or other transfer of all or substantially all of the assets of us to any person, the affirmative vote of at least 66 2/3% of the shares entitled to vote thereon is required to approve such transaction; provided, however, that if such transaction is approved in advance by the directors, such transaction may be approved by the affirmative vote of a majority of the shares entitled to vote thereon.

 

Dividends

 

Our Board, by resolution, may declare and pay dividends in money, shares, or other property. No dividend shall be declared and paid unless the directors determine that immediately after the payment of the dividend the Company will be able to satisfy its liabilities as they become due in the ordinary course of its business and the 

1

 

realizable value of the assets of the Company will not be less than the sum of its total liabilities, other than deferred taxes, as shown in its books of account, and its issued and outstanding share capital. Our Board adopted an annual dividend program in November 2019, which program was temporarily suspended until further notice by our Board in response to the impact of the COVID-19 outbreak on our business.

 

Liquidation, Redemption and Preemptive Rights

 

In the event of any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, after payment or provision for the payment of the debts and other liabilities of the Company and the payment or setting aside for payment of any preferential amount due to the holders of any series of preferred shares, the holders of common shares, subject to the rights of the holders of any class or series of shares ranking on a parity with the common shares as to the payments or distributions in such event, shall be entitled to receive ratably any and all assets of the Company remaining to be paid or distributed.

 

We may purchase, redeem or otherwise acquire and hold our common shares, but no purchase, redemption or other acquisition shall be made unless the directors determined that immediately after the purchase, redemption or other acquisitions, we will be able to satisfy our liabilities as they become due in the ordinary course of our business and the realizable value of our assets will not be less than the sum of our total liabilities, other than deferred taxes, as shown in the books of account. A determination by our Board is not required where our common shares are purchased, redeemed or otherwise acquired:

 

	
 
	
a)
	
pursuant to a shareholder’s right to have our common shares redeemed or exchanged for money or other property of OneSpaWorld;

 

	
 
	
b)
	
in exchange for newly issued our common shares;

 

	
 
	
c)
	
by virtue of Section 81 of the International Business Companies Act, 2000 (No. 45 of 2000) (the “Act”) of the Commonwealth of The Bahamas; or

 

	
 
	
d)
	
pursuant to an order of the Supreme Court of the Commonwealth of The Bahamas.

 

Our common shares that are purchased, redeemed or otherwise acquired by us in accordance with our Articles may be cancelled or held as treasury shares unless our common shares are purchased, redeemed or otherwise acquired out of capital pursuant to Section 34 of the Act, in which case they shall be cancelled. Holders of our common shares have no preemptive rights.

 

Anti-Takeover Provisions and Other Provisions of Our Articles

 

Our Articles include certain provisions which may have the effect of delaying or preventing a future takeover or change in control of us that shareholders may consider to be in their best interests. Among other things, our Articles provide for a classified Board serving staggered terms of three years, super majority voting requirements with respect to certain significant transactions and restrictions on the acquisition of greater than 9.99% ownership without our Board’s approval. 

Classification of our Board of Directors 

 

Our Board is divided into three classes, having staggered terms of office of three years each. The effect of the classified Board may be to make it more difficult to acquire control over OneSpaWorld. 

 

Annual Meeting of Shareholders

 

Annual meetings of shareholders shall be held during each of our fiscal years and convened by a notice, which shall specify the place and time of the meeting as determined by resolution of the directors. Our Board may convene special meetings of the shareholders at such times and in such manner and places within or outside the Commonwealth of The Bahamas, or by means of remote communication, as the directors consider necessary or desirable. 

 

 

 

At an annual meeting of the shareholders, only such business shall be conducted as shall have been properly brought before the meeting. In addition to any other applicable requirements, to be properly brought before an annual meeting, business must be (a) specified in the notice of meeting given by or at the direction of the directors, (b) brought before the meeting by or at the direction of the directors or (c) otherwise properly brought before the meeting by a shareholder. Only those matters set forth in the notice of a special meeting may be considered or acted upon at that meeting, unless otherwise required by law. At every meeting of shareholders, the chairman of the board shall preside as chairman of the meeting. If there is no chairman of the board or if the chairman of the board is not present, the shareholders present shall choose someone of their number to be the chairman.

 

Special Meeting of Shareholders

 

A special meeting of the shareholders may be convened by our Board. Upon the written request of shareholders holding not less than majority of the outstanding voting shares, the directors shall convene a meeting of shareholders. If a special meeting is requested by such shareholders, a written request, specifying the business proposed to be transacted, shall be delivered personally or sent by first class mail, by express delivery or electronic transmission, to the Secretary of the Company. Upon receipt by our Secretary of such a request, the Secretary shall send notice of such meeting to shareholders entitled to vote within 45 days after the date the request was delivered to the Secretary. If such notice is not given by the Secretary within 45 days, the person or persons requesting the meeting may specify the time and place of the meeting and give noticed thereof; provided, however, that at least 10 days’ notice of such meeting is required to be given to the shareholders.

 

Advance Notice of Proposals

 

A shareholder may submit a proposal to present other items of business at the annual meeting of shareholder. The shareholder must give written notice of their intention to do. Notice for the presentation of other items of business submitted, must be received not less than 75 days nor more than 120 days prior to the first anniversary of the preceding year’s annual meeting of shareholders. Our Articles set forth the form and content of the notice, as well as additional information regarding shareholders proposals and nominations.  

 

Restrictions on Ownership

 

Our Articles provide that shareholders will be prohibited from beneficially owning more than 9.99% of our issued and outstanding common shares without the consent of our Board. This restriction does not apply to Steiner Leisure Limited.

 

Indemnification 

 

Our Articles provide that OneSpaWorld shall indemnify and hold harmless to the extent permitted by applicable law any person (other than any Auditor) who was or is a party or witness to (or is threatened to be made a party or witness to) any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of the Company) directly or indirectly by reason of the fact that he or she is or was a director, officer, employee or agent of the Company, or, while serving as a director, officer, employee or agent of the Company, against all liabilities, damages, costs, expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such action, suit or proceeding if he or she acted in good faith and in a manner he or she reasonably believed to be in (or not opposed to) the best interests of the Company, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful; and in actions by or in the right of the Company except that no such indemnification shall be made in respect of any claim, issue or matter as to which such person shall have been adjudged to be liable to the Company, unless and only to the extent that the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which such other court shall deem proper. 

 

 

 

Transfer Agent 

 

OneSpaWorld has appointed Continental Stock Transfer & Trust Company as its agent in New York to maintain our shareholders’ register on behalf of our Board and to act as transfer agent and registrar for our common shares.

 

Listing

 

Our common shares trade on The Nasdaq Capital Market under the symbol “OSW.”

 

Warrants

2019 Warrants

Each 2019 Warrant entitles the registered holder to purchase one of our common shares at a price of $11.50 per share, subject to adjustment, at any time. The 2019 Warrants will expire five years after the completion of the business combination, consummated on March 19, 2019 (the “Business Combination”), at 5:00 p.m., New York City time, or earlier upon redemption.

If the common shares issuable upon exercise of the 2019 Warrants are not registered under the Securities Act within 60 business days following the Business Combination, we will be required to permit holders to exercise their 2019 Warrants on a cashless basis. However, no 2019 Warrant will be exercisable for cash or on a cashless basis, and we will not be obligated to issue any common shares to holders seeking to exercise their 2019 Warrants, unless the issuance of the common shares upon such exercise is registered or qualified under the securities laws of the state of the exercising holder, unless an exemption is available. In the event that the conditions in the immediately preceding sentence are not satisfied with respect to a 2019 Warrant, the holder of such 2019 Warrant will not be entitled to exercise such 2019 Warrant and such 2019 Warrant may have no value and expire worthless. In no event will we be required to net cash settle any 2019 Warrant.

If our common shares are at the time of any exercise of a 2019 Warrant not listed on a national securities exchange such that it satisfies the definition of a “covered security” under Section 18(b)(1) of the Securities Act, we may, at our option, require holders of warrants who exercise their warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event we so elect, we will not be required to file or maintain in effect a registration statement, but we will be required to use our best efforts to register or qualify the common shares under applicable blue sky laws to the extent an exemption is not available.

We may call the 2019 Warrants for redemption:

	
 
	
•
	
in whole and not in part;

	
 
	
•
	
at a price of $0.01 per warrant;

	
 
	
•
	
upon not less than 30 days’ prior written notice of redemption (the “30-day redemption period”) to each warrant holder; and

	
 
	
•
	
if, and only if, the reported last sale price of the common shares equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day period ending three business days before we send the notice of redemption to the warrant holders.

If and when the 2019 Warrants become redeemable by us, we may not exercise our redemption right if the issuance of the common shares upon exercise of the 2019 Warrants is not exempt from registration or qualification under applicable state blue sky laws or we are unable to effect such registration or qualification. We will use our best efforts to register or qualify such common shares under the blue sky laws of the state of residence in those states in which the 2019 Warrants were offered in this offering.

We have established the last of the redemption criterion discussed above to prevent a redemption call unless there is at the time of the call a significant premium to the warrant exercise price. If the foregoing conditions are satisfied and we issue a notice of redemption of the 2019 Warrants, each warrant holder will be entitled to exercise its 

 

 

2019 Warrant prior to the scheduled redemption date. However, the price of the common shares may fall below the $18.00 redemption trigger price as well as the $11.50 warrant exercise price after the redemption notice is issued.

If we call the 2019 Warrants for redemption as described above, our management will have the option to require any holder that wishes to exercise its 2019 Warrants to do so on a “cashless basis.” In determining whether to require all holders to exercise their 2019 Warrants on a “cashless basis,” our management will consider, among other factors, our cash position, the number of 2019 Warrants that are outstanding and the dilutive effect on our shareholders of issuing the maximum number of common shares issuable upon the exercise of the 2019 Warrants. If our management takes advantage of this option, all holders of 2019 Warrants would pay the exercise price by surrendering their 2019 Warrants for that number of common shares equal to the quotient obtained by dividing (x) the product of the number of common shares underlying the 2019 Warrants, multiplied by the difference between the exercise price of the 2019 Warrants and the “fair market value” (defined below) by (y) the fair market value. The “fair market value” shall mean the average reported last sale price of the common shares for the 10 trading days ending on the third trading day prior to the date on which the notice of redemption is sent to the holders of 2019 Warrants. If our management takes advantage of this option, the notice of redemption will contain the information necessary to calculate the number of common shares to be received upon exercise of the 2019 Warrants, including the “fair market value” in such case. Requiring a cashless exercise in this manner will reduce the number of common shares to be issued and thereby lessen the dilutive effect of a warrant redemption. We believe this feature is an attractive option to us if we do not need the cash from the exercise of the 2019 Warrants. If we call the 2019 Warrants for redemption and our management does not take advantage of this option, the Selling Shareholders and their permitted transferees would still be entitled to exercise their 2019 Warrants for cash or on a cashless basis using the same formula described above that other warrant holders would have been required to use had all warrant holders been required to exercise their 2019 Warrants on a cashless basis, as described in more detail below.

A holder of a 2019 Warrant may notify us in writing in the event it elects to be subject to a requirement that such holder will not have the right to exercise such 2019 Warrant, to the extent that after giving effect to such exercise, such person (together with such person’s affiliates), to the warrant agent’s actual knowledge, would beneficially own in excess of 4.9% or 9.8% (or such other amount as a holder may specify) of the common shares outstanding immediately after giving effect to such exercise.

If the number of outstanding common shares is increased by a share dividend payable in common shares, or by a split-up of common shares or other similar event, then, on the effective date of such share dividend, split-up or similar event, the number of common shares issuable on exercise of each 2019 Warrant will be increased in proportion to such increase in the outstanding common shares. A rights offering to holders of common shares entitling holders to purchase common shares at a price less than the fair market value will be deemed a share dividend of a number of common shares equal to the product of (i) the number of common shares actually sold in such rights offering (or issuable under any other equity securities sold in such rights offering that are convertible into or exercisable for common shares) and (ii) one (1) minus the quotient of (x) the price per common share paid in such rights offering divided by (y) the fair market value. For these purposes (i) if the rights offering is for securities convertible into or exercisable for common shares, in determining the price payable for common shares, there will be taken into account any consideration received for such rights, as well as any additional amount payable upon exercise or conversion and (ii) fair market value means the volume weighted average price of common shares as reported during the ten (10) trading day period ending on the trading day prior to the first date on which the common shares trade on the applicable exchange or in the applicable market, regular way, without the right to receive such rights.

In addition, if we, at any time while the 2019 Warrants are outstanding and unexpired, pay a dividend or make a distribution in cash, securities or other assets to the holders of common shares on account of such common shares (or other shares of our share capital into which the warrants are convertible), other than (a) as described above or (b) certain ordinary cash dividends, then the warrant exercise price will be decreased, effective immediately after the effective date of such event, by the amount of cash and/or the fair market value of any securities or other assets paid on each common share in respect of such event.

If the number of outstanding common shares is decreased by a consolidation, combination, reverse share split or reclassification of common shares or other similar event, then, on the effective date of such consolidation, combination, reverse share split, reclassification or similar event, the number of common shares issuable on exercise of each 2019 Warrant will be decreased in proportion to such decrease in outstanding common shares.

 

 

Whenever the number of common shares purchasable upon the exercise of the 2019 Warrants is adjusted, as described above, the warrant exercise price will be adjusted by multiplying the warrant exercise price immediately prior to such adjustment by a fraction (x) the numerator of which will be the number of common shares purchasable upon the exercise of the 2019 Warrants immediately prior to such adjustment, and (y) the denominator of which will be the number of common shares so purchasable immediately thereafter.

 

In case of any reclassification or reorganization of the outstanding common shares (other than those described above or that solely affects the par value of such common shares), or in the case of any merger or consolidation of us with or into another corporation (other than a consolidation or merger in which we are the continuing corporation and that does not result in any reclassification or reorganization of our outstanding common shares), or in the case of any sale or conveyance to another corporation or entity of the assets or other property of us as an entirety or substantially as an entirety in connection with which we are dissolved, the holders of the warrants will thereafter have the right to purchase and receive, upon the basis and upon the terms and conditions specified in the 2019 Warrants and in lieu of the common shares immediately theretofore purchasable and receivable upon the exercise of the rights represented thereby, the kind and amount of shares of stock or other securities or property (including cash) receivable upon such reclassification, reorganization, merger or consolidation, or upon a dissolution following any such sale or transfer, that the holder of the 2019 Warrants would have received if such holder had exercised their 2019 Warrants immediately prior to such event. If less than 70% of the consideration receivable by the holders of common shares in such a transaction is payable in the form of common stock in the successor entity that is listed for trading on a national securities exchange or is quoted in an established over-the-counter market, or is to be so listed for trading or quoted immediately following such event, and if the registered holder of the 2019 Warrant properly exercises the 2019 Warrant within thirty days following public disclosure of such transaction, the warrant exercise price will be reduced as specified in the Warrant Agreement based on the Black-Scholes value (as defined in the Warrant Agreement) of the 2019 Warrant in order to determine and realize the option value component of the 2019 Warrant. This formula is to compensate the warrant holder for the loss of the option value portion of the 2019 Warrant due to the requirement that the warrant holder exercise the 2019 Warrant within 30 days of the event. The Black-Scholes model is an accepted pricing model for estimating fair market value where no quoted market price for an instrument is available.

The 2019 Warrants have been issued in registered form under the Warrant Agreement between Continental Stock Transfer & Trust Company, as warrant agent, and us. You should review a copy of the Warrant Agreement, which is filed as an exhibit to the registration statement of which this prospectus is a part, for a complete description of the terms and conditions applicable to the 2019 Warrants. The Warrant Agreement provides that the terms of the 2019 Warrants may be amended without the consent of any holder to cure any ambiguity or correct any defective provision, but requires the approval by the holders of at least 50% of the then outstanding 2019 Warrants held by holders other than the Selling Shareholders to make any change that adversely affects the interests of the registered holders of 2019 Warrants other than the Selling Shareholders.

The 2019 Warrants may be exercised upon surrender of the warrant certificate on or prior to the expiration date at the offices of the warrant agent, with the exercise form on the reverse side of the warrant certificate completed and executed as indicated, accompanied by full payment of the exercise price (or on a cashless basis, if applicable), by certified or official bank check payable to us, for the number of 2019 Warrants being exercised. The warrant holders do not have the rights or privileges of holders of common shares and any voting rights until they exercise their 2019 Warrants and receive common shares. After the issuance of common shares upon exercise of the 2019 Warrants, each holder will be entitled to one vote for each common share held of record on all matters to be voted on by shareholders.

The 2019 Warrants held by the Selling Shareholders are not redeemable by us so long as they are held by the Selling Shareholders or their permitted transferees and may be exercised on a cashless basis at any time. If the 2019 Warrants held by the Selling Shareholders cease to be held by them or their permitted transferees, such warrants will be redeemable by us and exercisable by the holders on the same basis as the warrants described above.

If the Selling Shareholders elect to exercise their 2019 Warrants on a cashless basis, they would pay the exercise price by surrendering their warrants for that number of common shares equal to the quotient obtained by dividing (x) the product of the number of common shares underlying the 2019 Warrants, multiplied by the difference 

 

 

between the exercise price of the 2019 Warrants and the “fair market value” (defined below) by (y) the fair market value. The “fair market value” shall mean the average reported last sale price of the common shares for the 10 trading days ending on the third trading day prior to the date on which the notice of warrant exercise is sent to the warrant agent.

2020 Warrants

The 2020 Warrants issued pursuant to the Investment Agreement (as defined below) will expire on the earlier of (i) the fifth anniversary of the closing of the 2020 Private Placement or (ii) the Redemption Date (as defined below). The 2020 Warrants may be exercised on a “cashless” basis, in accordance with a specified formula. In addition, the Company may, at any time prior to their expiration, elect to redeem not less than all of such then-outstanding 2020 Warrants at a price of $0.01 per warrant, provided that the last sales price of the common shares reported has been at least $14.50 per share (subject to adjustment in accordance with certain specified events), on each of twenty trading days within the thirty-trading day period ending on the third business day prior to the date on which notice of the redemption is given (the “Redemption Date”), and provided that the common shares issuable upon exercise of such 2020 Warrants have been registered, qualified or are exempt from registration or qualification under the Securities Act and under the securities laws of the state of residence of the registered holder of the 2020 Warrant.EX-10.1

 Exhibit 10.1 

FORM OF EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT (“Agreement”) is made between Blue Foundry Bank (the “Bank”), a New Jersey savings
bank and James Nesci, an individual (the “Executive”) (hereinafter, collectively referred to as the “Parties”). Any reference in this Agreement to the “Company” means Blue Foundry Bancorp, a Delaware
corporation and the holding company of the Bank. 
 WITNESSETH: 

WHEREAS, the Bank desires to continue to retain the services of the Executive as President and Chief Executive Officer of the Bank; and 

WHEREAS, the Bank and the Executive desire to enter into this Agreement to set forth and define the terms and conditions of the employment
relationship between the Bank and the Executive. 
 NOW THEREFORE, in consideration of the mutual covenants and agreements contained herein,
and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, agree as follows: 

AGREEMENT: 
 1. Term. The Executive
is hereby employed as President and Chief Executive Officer of the Bank on the terms and conditions set forth in this Agreement. For purposes of this Agreement, the “Effective Date” shall be January 1, 2021. The initial term of
this Agreement will begin as of the Effective Date and continue for a period of three (3) years. The term of this Agreement shall automatically renew annually, effective as of each January 1 after the Effective Date (the “Annual
Renewal Date”) for an additional one (1) year period such that the term of employment under this Agreement immediately after each such renewal is three (3) years thereafter, unless the Bank’s Board of Directors (the
“Board of Directors”) or the Executive gives written notice of its or his intent not to renew the Term of this Agreement at least sixty (60) days prior to such Annual Renewal Date. The period during which the Executive is employed by
the Bank pursuant to this Agreement, including all extensions thereof, is hereinafter referred to as the “Term.” Notwithstanding the foregoing, in the event the Bank or the Company has entered into an agreement to effect a
transaction that would be considered a Change in Control as defined under Section 4(c) hereof, the Term of this Agreement shall be extended automatically at such time so that the Term as of the effective date of the Change in Control shall be
for three (3) years thereafter. Nothing in this Agreement shall mandate or prohibit a continuation of the Executive’s employment following the expiration of the Term. 

2. Duties of Executive. The Executive shall serve as President and Chief Executive Officer of the Bank and, in such capacity, shall
perform such duties and have such responsibilities as is typical for such positions, as well as any other reasonable duties as may be assigned to him from time to time by the Board of Directors. The Executive shall diligently devote substantially
all of his business time, energy and ability to his duties and the business of the Bank. During the Term, the Executive will not engage in consulting work or any trade or business for his own account or for or on behalf of any other person, firm or
corporation, as an employee or otherwise; provided 

 
that the Executive may sit on one paid board of directors, with the prior approval of the Board of Directors, which approval shall not be unreasonably withheld, and may engage in non-competitive charitable and other non-profit activities (including volunteer service on boards) for reasonable periods of time each month so long as such activities do not
interfere with the Executive’s responsibilities under this Agreement and are not otherwise contrary to the interests of the Bank, as determined by the Bank’s Board of Directors in good faith. 

3. Compensation, Benefits and Expenses. 

(a) Base Salary. For services performed by the Executive under this Agreement, the Bank shall pay the Executive an annual base salary
during the Term at the rate of Seven Hundred Thousand Dollars ($700,000) (partial years prorated) in substantially equal installments in accordance with the Bank’s customary payroll practices. The Base Salary shall be reviewed no less than
annually by the Board of Directors or the Compensation Committee of the Board of Directors (the “Compensation Committee”) and may be increased but not be decreased during the Term. The Executive’s annual base salary, as in effect from
time to time, is hereinafter referred to as “Base Salary.” 
 (b) Annual Incentive Bonus. The Executive shall be
eligible to participate in the Bank’s annual incentive bonus plan, or any successor thereto, with [a target amount determined annually that is no less than [●]%] of the Executive’s Base Salary, subject to the terms and conditions of
any such plan or plans. The Executive’s actual annual bonus shall be determined based on the level of achievement of performance goals established by the Bank in its discretion (exercised in good faith) during the annual planning process, and
may be more or less than the target amount (depending on level of achievement of the applicable goals). 
 (c) Long-Term Incentives.
The Executive shall be eligible to participate in the Bank’s long-term incentive plan, and any successor thereto. 
 (d) Business
Expenses. During the Term of this Agreement, the Executive shall be entitled to receive prompt reimbursement of all reasonable and necessary out-of-pocket business,
entertainment, and travel expenses incurred by the Executive in performing his duties services this Agreement, with any such reimbursement in accordance with the expense reimbursement policies and procedures of the Bank for senior executive
officers. 
 (e) Employee Benefits. 

(i) Benefit Plans. During the Term, the Executive will be eligible to participate in and receive benefits under all employee benefit
plans, programs, arrangements and practices which are applicable to the Bank’s senior executive officers including but not limited to the Bank’s tax-qualified pension plan, tax-qualified 401(k) plan, medical plan, dental plan, vision plan, short-term and long-term disability plans, fringe benefit arrangements, a supplemental executive retirement plan (“SERP”) for the
Executive, and executive perquisite arrangements (collectively, the “Benefit Plans”), subject to and on a basis consistent with the terms, conditions and overall administration of such plans and arrangements, as they may be amended
from time to time (to the extent permitted by their terms). 

  
 2 

 (ii) Paid Time Off. The Executive shall be entitled to annual paid time off of six
(6) weeks in accordance with the standard policies or practices of the Bank for senior executive officers, as in effect from time to time and as set forth in the Bank’s Employee Handbook. 

(iii) Automobile Allowance. The Bank will provide the Executive with a monthly automobile allowance. For 2021, such allowance shall be
$1,100 per month, which would approximate the expense of a Bank-provided automobile and related insurance, maintenance and fuel costs. For each subsequent calendar year of the Executive’s employment, the Bank will increase the monthly amount of
the automobile allowance by 5%. Such allowance shall be subject to withholding for taxes and reporting on the Executive’s Form W-2 to the extent required by law. 

(iv) Country Club Membership. The Bank shall provide the Executive an allowance for the costs of maintaining membership in a country
club to be selected by the Executive with approval by the Bank, to be used for the purposes of business relations and development and otherwise furthering the performance of the Executive’s duties and responsibilities under this Agreement. For
2021, such allowance shall be $22,050. For each subsequent calendar year of the Executive’s employment, the Bank will increase the allowance by 5%. 

4. Termination of Employment. 

(a) Termination “Without Cause.” The Executive’s employment shall immediately cease and terminate upon the occurrence of
any one of the following events during the Term of this Agreement: 
 (i) the death of the Executive; or 

(ii) the involuntary termination of employment of the Executive by the Board of Directors without Cause. 

Upon termination of the Executive’s employment pursuant to Section 4(a)(i) the Bank shall be obligated to compensate the Executive or
the Executive’s estate as provided in Section 4(e)(i), and, upon termination pursuant to Section 4(a)(ii), the Bank shall be obligated to compensate the Executive as provided in Sections 4(e)(ii) or (iii) (as applicable) and 4(e)(iv).

 (b) Termination “For Cause.” The Executive’s employment shall immediately cease and terminate upon notice to the
Executive from the Bank that the Executive’s employment is terminated “For Cause,” and upon such termination “For Cause,” the Bank shall be obligated to compensate the Executive as provided in Section 4(e)(i). For
purposes of this Agreement, termination “For Cause” shall be defined as termination due to: 
 (i) the Executive’s
indictment or conviction (including by a plea of guilty, no contest, or nolo contendere) of any crime or disorderly persons offense as defined by N.J.S.A. 2C:1-4, felony, or misdemeanor, provided that
in the case of a crime that is not punishable by imprisonment in excess of 12 months, a misdemeanor, or a disorderly offense, the crime, misdemeanor, or disorderly persons offense involves any federal, state, or, local law (A) applicable to the
business of the Bank or (B) involving fraud, dishonesty, breach of trust or moral turpitude; 

  
 3 

 (ii) the Executive’s willful failure to perform his duties and responsibilities to the
Bank, which failure continues ten (10) days after the Bank has provided to the Executive written notice of the failure; 
 (iii) the
Executive’s failure to adequately perform his duties and responsibilities to the Bank, which performance deficiencies continue thirty (30) days after the Bank has provided to the Executive written notice setting forth the nature of the
performance deficiencies, all as reasonably determined by the Board of Directors; 
 (iv) any misconduct by the Executive, that constitutes
fraud, embezzlement or material dishonesty with respect to the Bank or the Company; 
 (v) any government banking regulatory agency’s
formal recommendation or order that the Bank terminate the employment of the Executive or relieve him of his duties; 
 (vi) the
Executive’s willful failure to comply with any valid and legal directive of the Board of Directors which (A) has a material adverse impact on the Bank’s operations or causes substantial harm to the Bank or the Company or
(B) continues thirty (30) days after the Bank has provided to the Executive written notice of the failure; or 
 (vii) any gross
negligence in the performance of his duties hereunder or material breach of this Agreement by the Executive which (A) has a material adverse impact on the Bank’s operations or causes substantial harm to the Bank or the Company, or
(B) continues thirty (30) days after the Bank has provided to the Executive written notice of the gross negligence or breach. 

(c) Termination Following a “Change in Control.” If, within a twenty-four-month period following a Change in Control,
either (i) the Bank or its successor terminates the Executive’s employment, other than For Cause, or (ii) the Executive terminates his employment for Good Reason, the Bank shall be obligated to compensate the Executive as provided in
Section 4(e)(iii) and 4(e)(iv) below. 
 For purposes of this Agreement, “Change in Control” means a change in the
effective ownership or effective control of the Bank or the Company or a change in the ownership of a substantial portion of the assets of the Bank or the Company, in each case within the meaning of Treasury Regulation section 1.409A-3(i)(5); provided, however, that for the purposes of this Agreement, a transaction by which Blue Foundry Bancorp, a New Jersey corporation or Blue Foundry MHC undertakes a full stock conversion or
minority stock offering shall not be deemed to constitute a Change in Control. The term “Change of Control Date” means the date on which a Change of Control occurs. 

  
 4 

 (d) Resignation. The Executive may terminate his employment and this Agreement
(I) for “Good Reason” by giving written notice to the Bank as set forth below, or (II) without Good Reason, by providing to the Bank at least thirty (30) days’ advance written notice (during which period, the
Executive shall assist the Bank with transition of the Executive’s responsibilities) provided, however, that the Bank may accelerate the date of termination upon receipt of written notice of the Executive’s resignation and, provided,
further, that if the Bank accelerates the date of termination to a date sooner than 30 days from the notice of resignation, the Bank shall pay the Executive through the end of the thirty (30) day period. For purposes of this Agreement,
“Good Reason” shall mean the occurrence of any of the following during the Term of the Agreement without the express written consent of the Executive: 

(i) a material reduction in the Executive’s Base Salary or target bonus opportunity in effect immediately prior to such reduction; 

(ii) a material adverse change in the Executive’s position, authority and responsibilities relative to his position, authority and
responsibilities at the Effective Date; 
 (iii) a change in the primary location at which the Executive is required to perform the duties
of his employment with the Bank to a location that is not located in one of the following New Jersey Counties: Bergen County, Hudson County, Passaic County, Union County, Morris County, Sussex County, Middlesex County, Somerset County or Hunterdon
County; or 
 (iv) a material breach by the Bank of this Agreement or a material breach of any other written agreement between the
Executive, on the one hand, and the Bank, on the other hand unless arising from the Executive’s inability to materially perform his duties contemplated hereunder. 

Before terminating this Agreement for Good Reason, the Executive must give the Bank at least sixty (60) days prior written notice
indicating his intent to terminate for Good Reason if corrective action is not taken during the 60-day notice period to remedy the event or condition that constitutes Good Reason and stating the reasons why he
believes there are grounds to terminate for Good Reason. The Executive’s written notice to the Bank of his intent to voluntarily terminate for Good Reason must be received within sixty (60) days following the Executive’s discovery of
the event or condition constituting such Good Reason. In the event the termination for Good Reason occurs within one year following the Executive’s discovery of the event or condition constituting such Good Reason, the Executive shall be
entitled to severance pay in accordance with Section 4(e)(ii) and 4(e)(iv). In the event of the termination for Good Reason following a Change in Control, the Executive shall be entitled to severance pay in accordance with
Section 4(e)(iii) and 4(e)(iv). 
 (e) Compensation Upon Termination. 

(i) In the event the Executive is terminated “For Cause” as set forth in Section 4(b) above, the Executive shall be entitled to
receive only his Base Salary and, subject to the terms of the applicable plan, program or policy, the benefits and expense reimbursements as have been earned by him through the date of his termination. In the event the Executive’s employment
terminates due to the Executive’s death as set forth in Section 4(a)(i) above, the Executive’s estate shall be entitled to receive only his Base Salary as has been earned by him through the date of his termination, any Annual
Incentive Bonus for the prior calendar year that was not paid at the date of termination and, subject to the terms of the applicable plan, program or policy, the benefits and expense reimbursements as have been earned by him through the date of his
termination. 

  
 5 

 (ii) In the event the Executive’s employment is terminated (A) “Without
Cause” as set forth in Section 4(a)(ii), above, or (B) for “Good Reason” as set forth in Section 4(d), above, the Executive shall be entitled to his Base Salary and, subject to the terms of the applicable plan, program
or policy, the benefits and expense reimbursements as have been earned by him through the date of his termination, plus any Annual Incentive Bonus for the prior calendar year that was not paid at the date of termination and severance pay in an
amount equal to the greater of (I) the sum of one times the Executive’s annual Base Salary (at the rate then in effect) plus the target amount of the Annual Incentive Bonus (as set by the Board of Directors or the Compensation Committee
for the calendar year in which the Executive’s termination occurs) or (II) the sum of the Executive’s annual Base Salary (at the rate then in effect) that would have been payable for the remaining Term, plus the target amount of the
Annual Incentive Bonus (as set by the Board of Directors or the Compensation Committee for the calendar year in which the Executive’s termination occurs) for the year of termination and each subsequent year of the remaining Term, with such
aggregate amount paid as salary continuation in substantially equal installments over the twelve (12) month period following the date of termination in accordance with the Bank’s customary payroll practices regarding the payment of base
salary to executives but no less frequently than monthly (i.e., as if the Executive were still employed and receiving Base Salary pursuant to Section 3(a) of this Agreement). Payments under this section are subject to the Executive’s
compliance with Section 9 of the Agreement. Subject to any delay required by Section 8 below (“Section 409A”), the first payment shall be made on the next pay date that is at least 7 days following the later of the
expiration of the revocation period under the Release or the Bank’s receipt of the signed Release and shall include all installments that would have been paid earlier had the installment stream commenced immediately following the termination
date. 
 (iii) In the event the Executive’s employment is terminated (A) “Without Cause” in accordance with
Section 4(a)(ii) following a Change in Control (as set forth in Section 4(c) above) or (B) for “Good Reason” following such Change in Control, the Executive shall be entitled to his Base Salary and, subject to the terms of
the applicable plan, program or policy, the benefits and expense reimbursements as have been earned by him through the date of his termination, plus any Annual Incentive Bonus for the prior calendar year that was not paid at the date of termination
and severance pay in an amount equal to three (3) times the sum of (I) his Base Salary, as in effect at the time of termination of employment (without regard to a reduction that would be grounds for Good Reason), plus (II) the greater
of Executive’s highest actual Annual Incentive Bonus for the three calendar years immediately preceding his termination or the target amount of the Annual Incentive Bonus set by the Board of Directors or the Compensation Committee for the
calendar year in which the Executive’s termination occurs. If the Executive’s termination occurs within two years after the Change in Control, the amount shall be paid to the Executive in one
lump-sum payment on the next pay date that is at least 7 days following the Executive’s termination (unless a delay is required by Section 8 below (“Section 409A”)). 

  
 6 

 (iv) Following the effective date of termination of employment, either Without Cause in
accordance with Section 4(a)(ii), or 4(c), or by the Executive for “Good Reason” in accordance with Section 4(c) or 4(d), if the Executive timely and properly elects continued Bank-provided group health plan coverage pursuant to
the Consolidated Omnibus Reconciliation Act of 1985, as amended (“COBRA”), the Bank shall reimburse the Executive an amount each month equal to the monthly COBRA premium paid by the Executive for such coverage less the active employee
premium for such coverage; provided that if such reimbursement would violate applicable law (including nondiscrimination rules that apply for the plan), the Bank shall pay an allowance in lieu of a reimbursement. The Executive shall be eligible to
receive such reimbursement for each month that starts before the earlier of: (i) the date the Executive is no longer eligible to receive COBRA continuation coverage or (ii) the date on which the Executive either receives or becomes
eligible to receive substantially similar coverage from another employer. Payments under this Section 4, other than under Section 4(c)), are subject to the Executive’s compliance with Section 9 of the Agreement. Subject to any
delay required by Section 8 below (“Section 409A”), the first payment shall be made on the next pay date following the expiration of the revocation period under the Release, or the next pay date following the termination of
employment if a Release is not required, and shall include all installments that would have been paid earlier had the installment stream commenced immediately following the termination date. 

(v) In the event the Executive resigns without “Good Reason,” the Executive shall be entitled to his Base Salary and, subject to the
terms of the applicable plan, program, or policy, the benefits, incentives, and expenses as have been earned by him through the date of his termination. 

5. Post-Employment Covenants. 

(a) Trade Secrets and Confidential Information. During the course of the Executive’s employment with the Bank, certain business
records and information which the Parties hereto acknowledge as “Trade Secrets” and “Confidential Information” were and shall be made available by the Bank to the Executive. 

(i) These “Trade Secrets” include, but are not limited to the following, in each case to the extent not publicly available:

 (A) Customer lists (including address, phone number and contact person); mailing lists; customer information; referral sources;
advertising, solicitation, communications, public relations, and marketing plans/strategies/systems/techniques; banking products, pricing and discounting formulas, financial information and forecasts, schedules, lists, forms or calculations;
invoices; and customer preferences or history. 
 (B) Computer programs, and software; product design concepts, details and specifications;
logos and trademarks; website, networking, and Internet forms and procedures; business or technical processes, systems, methods, machines, inventions or discoveries; policy & procedure manuals; training manuals; forms; methods or procedures
of operation; financing, research and/or development strategies and technologies; and all written or oral confidential or proprietary information of the Bank, whether originated, used, implemented, modified, developed, or disseminated by the Bank in
the course of its business operations. 

  
 7 

 (ii) The Bank’s “Confidential Information” includes, but is not
limited to, the information set forth in subsections (i) (A) and (B) above. 
 (iii) During the Term of this Agreement and thereafter,
the Executive shall refrain from using or disclosing any Confidential Information or Trade Secrets of the Bank except in furtherance of the Bank’s business and shall not use, copy or disclose such information for his own behalf, or for the
benefit of any person or entity other than the Bank. In addition, following the Term of this Agreement, Executive will not use or disclose Confidential Information or Trade Secrets of the Bank except if expressly authorized in writing to do so by
the Board of Directors. 
 (iv) Nothing in this Agreement prohibits the Executive from reporting an event that he reasonably and in good
faith believes is a violation of law to the relevant law-enforcement agency including but not limited to the Department of Justice, the Securities and Exchange Commission, the Congress, and any agency
Inspector General, or from cooperating in an investigation conducted by such a government agency. This may include disclosure of trade secret or confidential information within the limitations permitted by the Defend Trade Secrets Act (DTSA). Under
the DTSA, no individual will be held criminally or civilly liable under federal or state trade secret law for disclosure of a trade secret (as defined in the Economic Espionage Act) that is: (A) made in confidence to a federal, state, or local
government official, either directly or indirectly, or to an attorney, and made solely for the purpose of reporting or investigating a suspected violation of law; or, (B) made in a complaint or other document filed in a lawsuit or other
proceeding, if such filing is made under seal so that it is not made public. Further, an individual who pursues a lawsuit for retaliation by an employer for reporting a suspected violation of the law may disclose the trade secret to the attorney of
the individual and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal, and does not disclose the trade secret, except as permitted by court order. 

(b) Employee Solicitation. The Executive agrees that during the Term of this Agreement and for the one (1) year period following
the termination of his employment with the Bank, regardless of the reason for said termination or the party instituting the termination (other than a termination under Section 4(c)), he shall not, whether directly or indirectly, in any way for
his own account or for the account of any other person, venture, firm, business, corporation or enterprise, offer employment to any employee of the Bank or attempt to induce or entice any regular or temporary employee of the Bank to terminate his or
her employment with the Bank; provided that nothing in this Agreement shall prohibit hiring of an individual who was not an officer of the Bank if the Executive is not involved in recruiting the individual or in the hiring decision. For the
avoidance of doubt, this Section 5(b) shall not apply following the Executive’s termination of employment following a Change in Control. 

(c) Non-solicitation and Non-competition Covenant. The
Executive agrees, that during the Term of this Agreement and for a period of one (1) year after the termination of the Executive’s employment, regardless of the reason for said termination or the party instituting the termination
(other than a termination under Section 4(c)), the Executive will not, directly or indirectly, individually, or as partner or as agent, independent contractor, employee or stockholder of any corporation, or for any business entity of any
nature: 

  
 8 

 (i) Call upon, solicit, or otherwise contact, any Customer or Prospective Customer,
for the purpose of selling a product or service that the Bank or any of its affiliates then provides or to encourage the Customer or Prospective Customer to cease doing business, in whole or in part, with the Bank, or any of its affiliates. 

For purposes of this Agreement, “Customer” means a person or entity who is a customer of the Bank at the time of the
Executive’s termination of employment or with whom the Executive had material direct contact on behalf of the Bank during the six month period preceding the termination of the Executive’s employment with the Bank and “Prospective
Customer” means a person or entity who was the direct target of sales or marketing activity by the Executive or whom the Executive knew was a target of the Bank’s sales or marketing activities during the one year period preceding the
termination of the Executive’s employment with the Bank. 
 (ii) Directly or indirectly own, manage, operate, control, be employed by,
participate in, render services to, or be connected in any manner with the ownership, management, operation or control of another financial institution that offers products or services similar or equivalent to those offered by the Bank (hereinafter
referred to as “Financial Institution”) in the Restricted Area. The Executive acknowledges that it shall be a violation of this subsection for the Executive to conduct any business referred to herein within the Restricted Area
referred to above, including but not limited to advertising or soliciting or otherwise servicing in any way Customers or Prospective Customers within said area, even though the Executive, or its affiliated business, may be located outside the
Restricted Area. 
 (iii) Except as agreed otherwise by Executive and the Board of Directors, the restrictions on the activities of the
Executive contained in this Section 5(c)(iii) shall be limited to the following geographical areas: 1) all counties in New Jersey in which the Bank or an affiliate of the Bank maintains an office or branch or has filed an application for
regulatory approval to establish an office or branch as of date of termination, and 2) if the Financial Institution is headquartered within ten (10) miles of the Bank’s New Jersey office or any New Jersey branch of the Bank, any county in
the State of New Jersey adjacent to a county in which the Bank maintains an office or a branch(“Restricted Area”). The Executive acknowledges that these restrictions will not render him unable to find or undertake gainful employment
appropriate to his skills and experience. 
 For the avoidance of doubt, this Section 5(c) shall not apply following the Executive’s termination
of employment following a Change in Control. 
 (d) Severability. The Parties acknowledge that subsections (a), (b) and (c) above
are severable, and the invalidity or unenforceability of any subsection or portion thereof will not impair the enforceability of the remaining subsections or portions. 

(e) Remedies. The Executive agrees that the Bank will suffer irreparable damage and injury and will not have an adequate remedy at law
if the Executive breaches any provision of the restrictions contained in Section 5 (the “Restrictive Covenants”). Accordingly, if the Executive breaches or threatens or attempts to breach the Restrictive Covenants, in addition
to all other available remedies, the Bank shall be entitled to seek injunctive relief, and no or minimal bond or other security shall be required in connection therewith. The Executive 

  
 9 

 
acknowledges and agrees that in the event of termination of this Agreement for any reason whatsoever, the Executive can obtain employment not competitive with the Bank’s Business (or, if
competitive, outside of the geographic and customer-specific scope described herein) and that the issuance of an injunction to enforce the provisions of the Restrictive Covenants shall not prevent the Executive from earning a. livelihood. The
Restrictive Covenants are essential terms and conditions to the Bank entering into this Agreement, and they shall be construed as independent of any other provision in this Agreement or of any other agreement between the Executive and the Bank. The
existence of any claim or cause of action that the Executive has against the Bank, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Bank of the Restrictive Covenants. 

(f) Periods of Noncompliance and Reasonableness of Periods. The Bank and the Executive acknowledge and agree that the restrictions and
covenants contained in Section 5 are reasonable in view of the nature of the Bank’s Business and the Executive’s advantageous knowledge of and familiarity with the Bank’s Business, operations, affairs, and Customers.
Notwithstanding anything contained herein to the contrary, if the scope of any restriction or covenant contained in Section 5 is found by a court of competent jurisdiction to be too broad to permit enforcement of such restriction or covenant to
its full extent, then such restriction or covenant shall be enforced to the maximum extent permitted by law. The parties hereby acknowledge and agree that a court of competent jurisdiction shall invoke and exercise the blue pencil doctrine to the
fullest extent permitted by law to enforce this Agreement. 
 For purposes of this Agreement, “Bank’s Business” means,
collectively, the products and services provided by the Bank or any other affiliate of the Bank, including, but not limited to, lending activities (including individual loans consisting primarily of home equity lines of credit, residential real
estate loans, and/or consumer loans, and commercial loans, including lines of credit, real estate loans, letters of credit, and lease financing) and depository activities (including, but not limited to, noninterest-bearing demand, NOW, savings and
money market, and time deposits), debit and ATM cards, merchant cash management, internet banking, treasury services, (including investment management, wholesale funding, interest rate risk, liquidity and leverage management and capital markets
products) and other general banking services. 
 6. Intellectual Property. The Executive assigns full and absolute
right, title and interest to the Bank of any and all written designs, written inventions, and unique or improved banking products created, in each case, by the Executive for the Bank at any time during his employment with the Bank (together with any
and all works of authorship described in the following sentence, referred to as “Intellectual Property”). The Executive further agrees that any work of authorship made by the Executive for the Bank, or otherwise related in any way
to his duties, shall be deemed a “work made for hire” and the Bank shall be the sole author of such work and the owner of all of the rights comprised in the copyright of such work. To the extent the Bank is not considered to be the sole
author of any such work notwithstanding this provision, the Executive hereby assigns full and absolute right, title and interest in and to such works to the Bank and agrees to take all necessary and or prudent steps to assist the Bank in perfecting
its interests and rights thereto. 

  
 10 

 7. Withholding and Taxes. The Bank may withhold from any payment made
hereunder (i) any taxes that the Bank reasonably determines are required to be withheld under federal, state; or local tax laws or regulations, and (ii) any other amounts that the Bank is authorized to withhold. Except for employment taxes
that are the obligation of the Bank, the Executive shall pay all federal, state, local, and other taxes (including, without limitation, interest, fines, and penalties) imposed on him under applicable law by virtue of or relating to the payments
and/or benefits contemplated by this Agreement, subject to any reimbursement provisions of this Agreement. 
 8.
Section 409A. To the extent necessary to ensure compliance with Code Section 409A (“Section 409A”), the provisions of this Section 8 shall
govern in all cases over any contrary or conflicting provision in this Agreement. 
 (a) It is intended that this Agreement comply with the
requirements of Section 409A and all guidance issued thereunder by the U.S. Internal Revenue Service with respect to any nonqualified deferred compensation subject to Section 409A. This Agreement shall be interpreted and administered to
maximize the exemptions from Section 409A and, to the extent this Agreement provides for deferred compensation subject to Section 409A, to comply with Section 409A and to avoid the imposition of tax, interest and/or penalties upon the
Executive under Section 409A. Although the Bank intends to administer this Agreement to prevent taxation under Section 409A, it does not represent or warrant that the form of this Agreement complies with any provision of federal, state,
local, or non-United States law. The Bank and its affiliates, and their respective directors, officers, employees and advisers will not be liable to the Executive (or any other individual claiming a benefit
through the Executive) for any tax, interest, or penalties the Executive may owe as a result of this Agreement. 
 (b) Each installment in a
series of payments under this Agreement will be treated as a separate payment. 
 (c) To the extent necessary to comply with
Section 409A, in no event may the Executive, directly or indirectly, designate the taxable year of payment. To the extent necessary to comply with Section 409A, if any payment to the Executive under this Agreement is conditioned upon the
Executive executing and not revoking a release of claims and if the designated payment period for such payment begins in one taxable year and ends in the next taxable year, the payment will be made in the later taxable year. 

(d) To the extent necessary to comply with Section 409A, references in this Agreement to “termination of employment,”
“terminates employment,” “termination date” and similar references shall have the same meaning as “separation from service” under Section 409A(a)(2)(A)(i) and any governing Internal Revenue Service guidance and
Treasury regulations (“Separation from Service”), and no payment subject to Section 409A that is payable upon a termination of employment shall be paid unless and until (and not later than applicable in compliance with
Section 409A) the Executive incurs a Separation from Service; provided that the Bank shall in all cases pay the Executive for services performed as an employee of the Bank even if performed after the occurrence of a separation from service for
purposes of Section 409A. In addition, if the Executive is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) at the time of the Executive’s Separation from Service, any nonqualified deferred compensation
subject to Section 409A that would otherwise have been payable on account of, and within the first six months following, the Executive’s Separation from Service, and not by reason of another event under Section 409A(a)(2)(A), will
become payable on the first business day after six months following the date of the Executive’s Separation from Service or, if earlier, the date of the Executive’s death. 

  
 11 

 (e) To the extent that any payment of or reimbursement by the Bank to the Executive of
eligible expenses under this Agreement is includible in the Executive’s income and constitutes a “deferral of compensation” within the meaning of Section 409A (a “Reimbursement”) (1) the Executive must request
the Reimbursement (with substantiation of the expense incurred) no later than 90 days following the date on which the Executive incurs the corresponding eligible expense; (ii) subject to any shorter time period provided in any Bank expense
reimbursement policy or specifically provided otherwise in this Agreement, the Bank shall make the Reimbursement to the Executive on or before the last day of the calendar year following the calendar year in which the Executive incurred the eligible
expense; (iii) the Executive’s right to Reimbursement shall not be subject to liquidation or exchange for another benefit; (iv) the amount eligible for Reimbursement in one calendar year shalt not affect the amount eligible for
Reimbursement in any other calendar year; and (v) except as specifically provided otherwise in this Agreement, the period during which the Executive may incur expenses that are eligible for Reimbursement is limited to five calendar years
following the calendar year in which the termination date occurs. 
 9. Release. Except as otherwise provided in
Section 4, for and in consideration of the foregoing covenants and promises made by the Bank, and the performance of such covenants and promises, the sufficiency of which is hereby acknowledged, the Executive understands that, as a condition of
the payment of any amounts under Section 4(e)(ii) or 4(e)(iv) (as to Section 4(e)(iv), other than as to a termination under Section 4(c) of this Agreement) of this Agreement, the Executive will be required to execute a general release
of all then existing claims against the Bank, its affiliates, directors, officers, employees and agents in relation to claims relating to or arising out of the Executive’s employment with the Bank in a form substantially consistent with the
Bank’s standard form of general release used for officers and not inconsistent with the terms of this Agreement (the “Release”), and the Executive shall not receive any payments or benefits under Sections 4(e)(ii) or 4(e)(iv) of this
Agreement (as to Section 4(e)(iv), other than as to a termination under Section 4(c) of this Agreement) unless the Executive is eligible for those payments or benefits and satisfies this release requirement. The Bank shall provide the
Release to the Executive no later than five (5) days after the termination date. THE EXECUTIVE’S RIGHT TO BENEFITS UNDER SECTION 4 OF THIS AGREEMENT SHALL BE CONTINGENT ON HIS SIGNING THE RELEASE WITHIN THE PERIOD SPECIFIED IN THE
RELEASE, WHICH PERIOD WILL NOT EXCEED 45 DAYS FROM THE DATE THE BANK PROVIDES THE RELEASE TO THE EXECUTIVE, HIS PROVIDING THE SIGNED RELEASE TO THE BANK, AND HIS NOT REVOKING THE RELEASE WITHIN THE PERIOD SPECIFIED IN THE RELEASE, WHICH PERIOD WILL
BE 7 DAYS FROM THE DATE THE EXECUTIVE SIGNS THE RELEASE OR ANY LONGER PERIOD REQUIRED BY LAW FOR A VALID RELEASE. 

  
 12 

 10. Indemnification and Insurance. The Executive shall be covered by
the Bank’s liability insurance coverage for directors and officers during his employment with the Bank. If the policy does not continue coverage post-employment for previously covered claims against the Executive that arose during his
employment with the Bank, the parties will work together in good faith to identify a policy that would continue such coverage. In the event that the Executive is made a party or threatened to be made a party to any action, suit, or other proceeding,
whether civil, criminal, administrative, or investigative (each a “Proceeding”), other than any Proceeding initiated by the Executive or the Bank related to any contest or dispute between the Executive and the Bank with respect to
this Agreement or the Executive’s employment hereunder, arising from or related to the Executive’s employment with the Bank, the Executive shall be indemnified and held harmless by the Bank to the maximum extent permitted under applicable
law from and against any and all liabilities, costs, claims, and expenses (including attorneys’ fees), including all costs and expenses in the investigation and defense of any Proceeding.    The Bank (or its insurer) shall
pay covered costs and expenses directly on behalf of the Executive, or reimburse the Executive for such costs and expenses. 
 11.
Miscellaneous Provisions. 
 (a) Notice. Any notice, request, instruction, or other document to be given hereunder to any
party shall be in writing and delivered by hand, registered or certified United States mail, return receipt requested, or other form of receipted delivery (including email), with all expenses of delivery prepaid, at the address specified for such
party below (or such other address as specified by such party by like notice): 
  

			
	If to the Executive:	  	At the address maintained in the personnel records of the Bank.
		
	If to the Bank:	  	 Blue Foundry Bank
 19 Park Avenue

Rutherford, NJ 07070
 Attention: Chairman of the
Board

 (b) Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an
original but all of which taken together shall constitute one and the same instrument. 
 (c) Waiver. No provision of this Agreement
may be modified, waived, or discharged unless such waiver, modification, or discharge is agreed to in writing and signed by the Executive and an executive officer of the Bank specifically designated by the Board of Directors. No waiver by any party
hereto at any time of any breach by any other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the
same or at any prior or subsequent time. 
 (d) Construction of Terms. The language of all parts of this Agreement shall in all cases
be construed as a whole, according to its fair meaning, and not strictly for or against any of the Parties, notwithstanding any statutory or common law provisions which would suggest otherwise. 

  
 13 

 (e) Binding Effect; Assignment. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns; provided, however, that neither party hereto may assign this Agreement without the prior written consent of the other party. Notwithstanding the foregoing, (i) the Bank
shall require any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Bank, as applicable, to expressly assume, in writing, all of the
Bank’s obligations to the Executive hereunder and the Executive hereby consents to the assignment of the Restrictive Covenants under this Agreement to any successor or assign of the Bank, and (ii) upon the Executive’s death, this
Agreement shall inure to the benefit of and be enforceable by the Executive’s executors, administrators, representatives, heirs, distributees, devisees, and legatees and all amounts payable hereunder shall be paid to such persons or the estate
of the Executive. 
 (f) Cooperation Covenant. Both during and after the Term, the Executive shall cooperate fully with the Bank and
with any legal counsel, expert or consultant it may retain to assist it in connection with any judicial proceeding, arbitration, administrative proceeding, governmental investigation or inquiry or internal audit in which the Bank, or any affiliate
thereof, may be or become involved, including full disclosure of all relevant information and truthfully testifying on the Bank’s behalf (or, at the request of the Bank, on behalf of such affiliate of the Bank) in connection with any such
proceeding or investigation; provided that the Bank shall provide reasonable advance notice to the Executive of any needs after his employment with the Bank has terminated and the Executive’s post-termination obligations shall be limited to the
extent necessary to avoid a material adverse impact on the Executive’s ability to maintain employment. The Bank shall reimburse the Executive for all reasonable
out-of-pocket expenses, including lost wages and reasonable attorneys’ fees (unless the Bank or its insurer, at their expense, provides counsel to represent the
Executive) incurred in connection with the Executive’s performance of obligations pursuant to this Section 11(f). 
 (g)
Representation of Executive. As an inducement to entering into this Agreement, the Executive represents to the Bank that his execution of and performance under this Agreement will not constitute a violation by him of any written or other
contract, understanding, arrangement, duties or other obligation pertaining to his performance of personal services, solicitation of employees or customers, or other conduct on his part contemplated by this Agreement. 

(h) Validity. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement, which shall remain in full force and effect. 
 (i) Regulatory Provisions. Notwithstanding
anything herein to the contrary, any payments made to the Executive pursuant to the Agreement, or otherwise, shall be subject to and conditioned upon compliance with 12 USC§ 1828(k) and FDIC Regulation 12 CFR Part 359, Golden Parachute and
Indemnification Payments promulgated thereunder. 
 (j) Governing Law; Jurisdiction and Venue. This Agreement shall be governed by and
construed in accordance with the laws of the State of New Jersey, without reference to the choice of law principles or rules thereof. Any action or proceeding by either of the parties to enforce this Agreement shall be brought only in state courts
in Bergen County, New Jersey and the United States District Court for the District of New Jersey. The parties hereby irrevocably submit to the exclusive jurisdiction of such courts and waive the defense of inconvenient forum to the maintenance of
any such action or proceeding in such venue. 

  
 14 

 (k) Attorneys’ Fees. The Bank shall pay directly or reimburse the Executive for
all reasonable attorneys’ fees incurred in review and negotiation of this Agreement. 
 (l) Entire Agreement. This Agreement
supersedes the employment agreement between the Bank and the Executive that was executed by the Executive on August 13, 2020 and by the Bank on August 11, 2020, and constitutes the entire and sole agreement between the Bank and the
Executive with respect to the Executive’s employment with the Bank or the termination thereof, and there are no other agreements or understandings either written or oral with respect thereto. The parties agree that any and all prior severance,
employment and/or change of control agreements between the parties have been terminated and are of no further force or effect. 
 (m)
Review and Consultation. THE EXECUTIVE HEREBY ACKNOWLEDGES AND AGREES THAT HE (I) HAS READ THIS AGREEMENT IN ITS ENTIRETY PRIOR TO EXECUTING IT, (II) UNDERSTANDS THE PROVISIONS AND EFFECTS OF THIS AGREEMENT,
(III) HAS CONSULTED WITH SUCH ADVISORS AS HE HAS DEEMED APPROPRIATE IN CONNECTION WITH HIS EXECUTION OF THIS AGREEMENT, AND (IV) HAS EXECUTED THIS AGREEMENT VOLUNTARILY. THE EXECUTIVE HEREBY UNDERSTANDS,
ACKNOWLEDGES, AND AGREES THAT THE EXECUTIVE HAS NOT RECEIVED ANY ADVICE, COUNSEL, OR RECOMMENDATION WITH RESPECT TO THIS AGREEMENT FROM THE BANK OR ITS COUNSEL. 

(n) Survival. Upon any expiration or other termination of this Agreement: (i) each of Sections 5 (Post-Employment Covenants), 8
(Section 409A), 9 (Release), 10 (Indemnification and Insurance), 11(f) (Cooperation), 11(h) (Regulatory Provisions), and 11(l) (Review and Consultation) shall survive such expiration or other termination; and (ii) all of the other respective
rights and obligations of the parties hereto shall survive such expiration or other termination to the extent necessary to carry out the intentions of the parties under this Agreement. 

  
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 IN WITNESS WHEREOF, the Bank has caused this Agreement to be executed by its duly authorized officer and
the Executive has signed this Agreement, all on the dates specified below and effective as of the Effective Date. 
  

							
		  		  		  	JAMES NESCI

							
				
	Date:	  	                                      
              	  		  	                                      
                                         
 
				
		  		  		  	BLUE FOUNDRY BANK

							
				
	Date:	  	                                      
              	  	By:	  	                                      
                                         
 

							
				
		  		  	Name:	  	                                      
                                         
 

							
				
		  		  	Title:	  	                                      
                                         
 

  
 16

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