Document:

exv10w3

 

Exhibit 10.3

SUBLEASE AGREEMENT

for commercial space

	 	 	 	 	 
	between
	 	Micromet AG
	 	- Sublessor -
	 
	 	Staffelseestrasse 2	 	 
	 
	 	81477 München	 	 
	 
	and
	 	Roche Diagnostics GmbH
	 	- Sublessee -
	 
	 	Sandhofer Strasse 116	 	 
	 
	 	68305 Mannheim	 	 

hereby enter into the following Sublease Agreement:

Preamble

Commercial space, particularly for users in the biotechnology and life sciences industries, shall
be leased at Staffelseestrasse 2-8 in 81477 Munich. In the Lease Agreement of December 12, 2002,
Micromet AG leased a portion of the commercial space from GEK Grundstücksverwaltungsgesellschaft
mbH & Co. Objekt Eins KG.

Roche would now like to use a portion of this space as laboratories and offices within the context
of a sublease arrangement. GEK Grundstücksverwaltungsgesellschaft mbH & Co. Objekt Eins KG has
declared its consent in principle to this arrangement.

This having been stated at the outset, the Parties hereby agree to the following:

§ 1

Leased Property

par. 1

Within the commercial property, space shall be leased for use as office, service, and laboratory
areas, with a leased area of approximately 1,724 m 2 as well as storage areas and parking spaces,
for the operation of a commercial enterprise (hereinafter “Leased Property”).

The leased area of approximately 1,724 m 2, including prorated common areas in the building, which
is distributed over the 1st floor of Building A and Building B at Staffelseestrasse 2 – 4, is
calculated pursuant to DIN 277 2.3, with the proviso that the interior structural components are
not considered in the overall measurement, although the plumbing stacks are subtracted, and is
marked in color in the Leased Space Allocation Plan attached as Annex 1.

Upon handover of the Leased Property or portions thereof, Lessor shall prepare a site survey
pursuant to DIN 277 2.3 for the transferred portion of the Leased Property, with the proviso that
the interior structural components are not considered in the overall measurement, although the
plumbing stacks are subtracted. This site survey shall serve as the basis for the rent payment
obligation.

The leased area marked in color in the Leased Area Allocation Plan attached as Annex 1 must
include, among other things, the following basic furnishings:

	•	 	Air-conditioning for all areas, air exchange rate 3.5 times/hour,
including cooling with split units (no dehumidification),
	 
	•	 	Laboratory finishing in accordance with S1 Standard: includes
flooring characteristics, troughs, floor tanks, wall
characteristics, setup for CO2 and N2 supply
lines. Ventilation will be prepared for an air exchange rate

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	•	 	of 6-8. The actual expansion of the ventilation system for an air
exchange rate of 6-8 is not included in the base rent, however.
	 
	•	 	Comprehensive wiring/cablework in all areas (wiring/cable
installation, distribution cabinets, sockets for IT, electricity,
etc.)
	 
	•	 	normal area lighting

par. 2

The Sublessee may use the lobby, ramp, and staircase belonging to Building B (Staffelseestrasse 4).
The Sublessee shall also have access in Building B, Staffelseestr. 4 to the areas that it has
leased. The areas leased by the Sublessee shall be segregated in relation to the Sublessor’s areas.
The Sublessor and/or its authorized agent may enter the leased areas during business hours and
following timely notification/agreement for the purpose of inspecting/maintaining the condition of
these areas or for other important reasons. The Sublessor shall provide an appropriate number of
access cards (1 card per employee, but not more than 60 cards) for the building and the underground
parking garage. Replacement cards or additional cards shall be provided to the Sublessee at a
charge of €1.50 per card.

par. 3

The undeveloped area of the property is not included in the lease; Lessee shall nevertheless have
the right to use of the common areas (driveway, service road, delivery area). The wall surfaces on
or in the building outside of the Leased Property are also not included in the lease.

par. 4

The Sublessee shall rent a total of 25 parking spaces in the underground parking garage (basement
level 2). The leased parking spaces shall be assigned to the Sublessee as shown in Annex 2.

par. 5

The Sublessee desires to have sublessee-specific remodeling of the Leased Property, which shall be
organized by the Sublessor and at least partially performed prior to the beginning of the term of
lease stipulated in this Agreement. The additional remodeling is summarized in Annex 3 and shall be
performed in accordance with the Sublessor’s space planning, in accordance with the structural
requirements (such as statics, support grids, etc.), as well as the remodeling specifications
agreed upon between the Sublessor and the Sublessee. The external costs of the remodeling in
relation to the areas leased by the Sublessee shall be borne by the Sublessor and calculated into
the rent accordingly. Details on the costs are regulated in §3 of this Agreement. The Parties agree
that the internal costs of the Sublessor incurred in conjunction with the additional remodeling
shall be borne by the Sublessor personally and shall therefore not be calculated into the rent.

par. 6

The additional remodeling in Building A shall be completed by August 1, 2007, and the additional
remodeling in Building B shall be completed by September 7, 2007. The respective areas shall be
handed over to the Sublessee in a clean-swept condition on these dates. If completion of the work
is delayed, the Sublessee shall have the right to a reduction of rent for the not yet usable areas.
Delays for which the Sublessee is responsible after the signing of this Sublease Agreement,
however, shall not constitute grounds for reduction of rent. The Sublessee shall have no rights to
claim compensatory damages. Outstanding residual work on the additional remodeling and defects
caused thereby that do not substantially impair the usability of the Lease Property’s shall not
entitle the Sublessee to refuse acceptance or reduce the rent. Any residual work and defects shall
be recorded in the move-in inspection form, which must be signed by both Parties and is an
essential component of the Sublease Agreement as Annex 4, and must be immediately completed and
eliminated, respectively, by the Sublessor.

par. 7

Following the Sublessee’s move-out of the leased premises, the Sublessor shall assume possession of
the additional remodeling. The Sublessor shall not be required to pay any compensation to the
Sublessee in this regard. As counterperformance, the Sublessor is merely required to undertake at
its own expense any removal of such additional work that may be necessary or demanded by Lessor and
indemnify the Sublessee against any claims by Lessor.

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§ 2

Term of Lease

par. 1

The Term of Lease shall be a fixed term of three years. August 1, 2007, shall be established as the
uniform start date of the Term of Lease for all areas leased to Lessee.

par. 2

The Sublessee shall be granted an option to extend the Term of Lease twice, for six months in each
instance, under the conditions of this Sublease Agreement. The Sublessee must notify the Sublessor
in writing regarding the exercise of said option; the first exercise of the option must occur no
later than six months prior to the termination of the fixed Term of Lease stipulated in par. 1, and
the second exercise of the extension option must occur no later than three months prior to the
expiration of the first extension of the Term of Lease.

par. 3

The Sublessee must accept possession of the Leased Property on the date stipulated by agreement
between the Sublessor and the Sublessee, provided that the property is ready for move-in.
The Leased Property shall be deemed accepted by the Sublessee if the Sublessee either fails to
appear on the handover date or wrongfully refuses to accept possession. The Sublessee shall bear
the burden of proof if it claims that the Leased Property does not conform to the acceptance
criteria or would not have conformed to said criteria on the handover date. The Parties shall
prepare a move-in inspection form at the time of handover of the premises.

§ 3

Leased Space, Rent

par. 1

The Leased Space and the rent are stipulated as follows:

	 	 	 	 	 	 	 	 	 
	approx. 1,724 m 2

	 	Office, service
areas and
laboratory areas,
1st floor, Building
A and Building B
	 	currently €36.86 /m 2

Including €6.39/m2
prepayments for operating costs

(Base rent: €19.48 per m2)
	 	 	63,546.64	 
	75.82 m 2

	 	Storage areas in

the basement

(BU201, BU207)
	 	€11.67/m 2
	 	 	884.82	 
	25 spaces

	 	Parking spaces

underground garage

basement level 2
	 	€64.86/space
	 	 	1,621.50	 
	 
	 	 	 	 	 	 	 	 
	Subtotal:
	 	 	 	 	 	 	 	 
	Plus statutory sales tax, currently 19%	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Total:

	 	 	 	 	 	 	66,052.96	 

The obligation to pay rent shall begin on August 1, 2007. The calculation of the rent, particularly
the additional costs allocated to the rent in connection with the additional remodeling, is shown
in detail in Annex 5. The cost estimate used as a basis for the additional costs is likewise part
of this Agreement as Annex 6. Following completion of the additional remodeling, the Sublessor
shall document the additional costs for the Sublessee and adjust the rent accordingly. If the
Sublessee exercises the option granted to it in §2 par. 2, the rent for said lease extension period
shall be reduced to the base rent adjusted pursuant to par. 4.

par. 2

The operating cost prepayment shall include all of the operating costs listed in Annex 3 to §27
par. 1 of the Second Regulation on Operating Costs [Zweiten Berechnungsverordnung] (Annex 7 to this
Sublease Agreement), as well as prorated administrative, maintenance and repair costs.

These costs shall be borne by the Parties to the Agreement on a prorated basis according to the
relationship between the space in the leased rooms and the overall lease space, unless they can be
directly allocated to the individual lessee.

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The Sublessee shall make an installment payment toward the ancillary costs, as specified under §3.
An accounting of these costs shall be performed once per year using, among other things, a
uniformly applied formula for the allocation of heating costs that takes into account the actual
consumption of the individual lessees and/or sublessees. The billing period shall be established by
the building management/billing firm in accordance with the usual modalities. The Sublessee shall
make a monthly installment payment toward the heating costs, as specified under §3.
Consumption-dependent costs that can be allocated directly to the Sublessee shall be paid directly
by the Sublessee (particularly electricity, water, gas).

The aforementioned rents and ancillary costs do not include statutory sales tax. The account with
respect to ancillary costs shall be settled on a calendar-year basis. The accounting of operating
costs and/or heating costs shall be deemed approved by the Sublessee unless a written objection has
been submitted to the Sublessor within four weeks after receipt of the accounting.

par. 3

With the presentation of the annual accounting, the Sublessor may demand a reasonable increase of
the prepayment for operating and heating costs, retroactively for the current fiscal year, if it is
foreseeable that the annual amount of the ancillary costs will exceed the sum of the prepayments.
Similarly, if there is a fundamental change during the current fiscal year in the cost factors used
as a basis for the calculation of the lump-sum prepayments, the Sublessor may demand an adjustment
of the prepayment for operating and heating costs based upon an interim accounting, which must be
presented at that time.

par. 4

The following index clause shall apply for the stipulated fixed Term of Lease and any further lease
extensions.

The base rent of €19.48 shall be adjusted on January 1 of each year, with the adjustment being made
in proportion to the change in the cost-of-living price index established by the German Federal
Office of Statistics for all private households in Germany (Basis: 1995 = 100) compared to its
status at the time of the handover of the Leased Property or compared to the most recent rent
adjustment. The claim for adjustment shall be valid no sooner than January 1, 2008, and shall be
independent of assertion.

par. 5

The rent shall be payable as follows:

	 	–	 	Rent for the remaining months of 2007: no later than the third business day of August 2007
	 
	 	–	 	Rent for 2008: paid for six (6) months in advance on the third business day of the
respective calendar half-year
	 
	 	–	 	Rent beginning in 2009: paid for three (3) months in advance on the third business day
of the respective calendar half-year

§ 5

Additional Provisions

     In all other respects, reference is hereby made to §§ 5 – 8, § 9 par. 1, 2, 4, and 5, § 12, §§ 14 –
16, § 17 par. 1, 2, 5, 6, 7, 9, 10, 11 of the lease agreement of December 12, 2002 between GEK
Grundstücksverwaltungsgesellschaft mbH & Co. Objekt Eins KG and the Sublessee, which shall apply
mutatis mutandis to this Sublease Agreement and which are attached to this Sublease Agreement as
Annex 8.
In addition, § 13 of said Lease Agreement with GEK Grundstücksverwaltungsgesellschaft mbH & Co.
Objekt Eins KG shall apply mutatis mutandis, although not with respect to any removal of the
additional remodeling; in this regard the Parties have entered into a different arrangement in this
Agreement.

The Parties are in agreement with the content of the letter from GEK dated June 6, 2007, which is
attached to this Agreement as Annex 9.

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	München, ...............2007

	 	 	 	Penzberg, ...............2007
	Micromet AG

	 	 	 	Roche
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	- Sublessor -

	 	 	 	- Sublessee -

Annex 1: Leased Area Allocation Plan

Annex 2: Parking Space Assignment

Annex 3: Remodeling and Renovation Measures in UL 1

Annex 4: Move-in Inspection Form

Annex 5: Schedule of Rent and Additional Costs

Annex 6: Cost Estimate by Dr. Heinekamp dated May 29, 2007

Annex 7: Annex 3 to § 27 par. 1 of the Second Regulation on Operating Costs

Annex 8: §§5 et seq. of the Lease Agreement between GEK Grundstücksverwaltungsgesellschaft mbH &
Co. Objekt Eins KG and Micromet AG dated December 12, 2002.

Annex 9: Letter from GEK dated June 6, 2007

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Exhibit 10.10

NORTHFIELD BANK

NON-QUALIFIED SUPPLEMENTAL

EMPLOYEE STOCK OWNERSHIP PLAN

                                        , 2007

 

 

NORTHFIELD BANK

NON-QUALIFIED SUPPLEMENTAL

EMPLOYEE STOCK OWNERSHIP PLAN

     1. Purpose

          This Non-Qualified Supplemental Employee Stock Ownership Plan (“Plan”) is intended to provide
Participants (as defined herein) or their Beneficiaries with the full dollar amount of
Employer-provided pension benefits obtainable under The Northfield Bank Employee Stock Ownership
Plan (“ESOP”) which may not be accrued under said ESOP due to the limitations imposed by Section
415 of the Internal Revenue Code (the “Code”) and the limitation on includible compensation imposed
by Section 401(a)(17) of the Code. The benefits provided under this Plan (as described below) are
intended to constitute a deferred compensation plan for “a select group of management or highly
compensated employees” for purposes of the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”). This Plan is intended to comply with Section 409A of the Internal Revenue Code
(“Code”) and the regulatory guidance and other guidance issued thereunder.

     2. Definitions

          Where the following words and phrases appear in the Plan, they shall have the respective
meaning as set forth below unless the context clearly indicates the contrary. Except to the extent
otherwise indicated herein, and to the extent inconsistent with the definitions provided below, the
definitions contained in the ESOP are applicable under the Plan.

          2.1 “Bank” means Northfield Bank.

          2.2 “Beneficiary” means the person designated by the Participant under the ESOP to
receive benefits in the event of the Participant’s death.

          2.3 “Board of Directors” means the Board of Directors of Northfield Bank.

          2.4
“Change in Control” shall mean (1) a change in ownership of the Company or the Bank under
paragraph (i) below, or (2) a change in effective control of the Company or the Bank under
paragraph (ii) below, or (3) a change in the ownership of a substantial portion of the assets of
the Company or the Bank under paragraph (iii) below:

	 	i.	 	Change in the ownership of the Bank. A change in
the ownership of the Bank shall occur on the date that any one person, or
more than one person acting as a group (as defined in Treasury Regulation
Section 1.409A-3(i)(5)(v)(B)), acquires ownership of stock of the
corporation that, together with stock held by such person or group,
constitutes more than 50% of the total fair market value or total voting
power of the stock of such corporation; or

 

 

	 	ii.	 	Change in the effective control of the Bank. A
change in the effective control of the Bank shall occur on the date that
either (i) any one
person, or more than one person acting as a group (as defined in Treasury
Regulation Section 1.409A-3(i)(5)(vi)(D)), acquires (or has acquired during
the 12-month period ending on the date of the most recent acquisition by
such person or persons) ownership of stock of the Bank possessing 30% or
more of the total voting power of the stock of the Bank; or (ii) a majority
of members of the Bank’s board of Directors is replaced during any 12-month
period by Directors whose appointment or election is not endorsed by a
majority of the members of the corporation’s board of Directors prior to the
date of the appointment or election, provided that this sub-section (ii) is
inapplicable where a majority shareholder of the Bank is another
corporation; or
	 
	 	iii.	 	Change in the ownership of a substantial portion of
the Bank’s assets. A change in the ownership of a substantial portion of
the Bank’s assets shall occur on the date that any one person, or more
than one person acting as a group (as defined in Treasury Regulation
Section 1.409A-3(i)(5)(vii)(C)), acquires (or has acquired during the
12-month period ending on the date of the most recent acquisition by such
person or persons) assets from the Bank that have a total gross fair
market value equal to or more than 40% of the total gross fair market
value of all of the assets of the corporation immediately prior to such
acquisition or acquisitions. For this purpose, gross fair market value
means the value of the assets of the corporation, or the value of the
assets being disposed of, determined without regard to any liabilities
associated with such assets. There is no Change in Control event under
this paragraph (iii) when there is a transfer to an entity that is
controlled by the shareholders of the transferring corporation
immediately after the transfer; or
	 
	 	iv.	 	For all purposes hereunder, the definition of
Change in Control shall be construed to be consistent with the
requirements of Treasury Regulation Section 1.409A-3(i)(5), except to the
extent modified herein. Notwithstanding anything herein to the
contrary, a Change in Control shall not be deemed to occur as the result
of the reorganization and second step conversion of the Company to a
fully converted stock holding company.

          2.5 “Code” means the Internal Revenue Code of 1986, as amended from time to time.
Reference to a specific provision of the Code shall include such provision, any valid regulation
or ruling promulgated thereunder and any comparable provision of future law that amends,
supplements or supersedes such provision.

          2.6 “Committee” means the Compensation Committee of the Board of Directors.

          2.7 “Company” means NSB Holdings, Inc.

          2.8 “Effective Date” means                                         , 2007.

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          2.9 “Employee” means an employee of the Employer on whose behalf benefits are payable
under the ESOP.

          2.10 “Employer” means the Bank or the Company, as applicable, and any successors by
merger, purchase, reorganization or otherwise. If a subsidiary or affiliate of the Employer adopts
the Plan, it shall be deemed the Employer with respect to its employees.

          2.11 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended
from time to time. Reference to a specific provision of ERISA shall include such provision, any
valid regulation or ruling promulgated thereunder and any comparable provision of future law that
amends, supplements or supersedes such provision.

          2.12 “ESOP” means Northfield Bank Employee Stock Ownership Plan, and any successor
thereto.

          2.13 “Participant” means an Employee who has been designated for participation in this
Plan pursuant to Section 3.1.

          2.14 “Phantom Stock” means the unit of measurement of a Participant’s account
hereunder denominated in hypothetical shares of the Company’s Stock. On any measurement date, the
Phantom Stock shall have a value equal to the fair market value of the Company’s Stock on such
date.

          2.15 “Plan” means Northfield Bank Non-Qualified Supplemental Employee Stock Ownership
Plan, as set forth herein and as may be amended from time to time.

          2.16 Plan Year” means the period from January 1 to December 31.

          2.17 “Separation from Service” means the Employee’s death, Retirement or other
termination of employment with the Bank within the meaning of Code Section 409A. No Separation
from Service shall be deemed to occur due to military leave, sick leave or other bona fide leave of
absence if the period of such leave does not exceed six months or, if longer, so long as the
Employee’s right to reemployment is provided by law or contract. If the leave exceeds six months
and the Employee’s right to reemployment is not provided by law or by contract, then the Employee
shall have a Separation from Service on the first date immediately following such six-month period.

          Whether a termination of employment has occurred is determined based on whether the facts and
circumstances indicate that the Employer and Employee reasonably anticipated that no further
services would be performed after a certain date or that the level of bona fide services the
employee would perform after such date (whether as an employee or as an independent contractor)
would permanently decrease to no more than 20% of the average level of bona fide services performed
over the immediately preceding 36 months (or such lesser period of time in which the Participant
performed services for the Bank). The determination of whether a Participant has had a Separation
from Service shall be made by applying the presumptions set forth in the Treasury Regulations under
Code Section 409A.

3

 

          2.18 “Specified Employee” means any Participant who also satisfies the definition of
“key employee” as such term is defined in Code Section 416(i). In the event a Participant is a
Specified Employee, no distribution shall be made to such Participant upon Separation from Service
prior to the date which is six (6) months following Separation from Service.

          2.19 “Stock” means the common stock of the Company, par value $.01 per share.

          2.20 “Surviving Spouse” means the legal spouse of a Participant, living at the time of
the death of the Participant.

     3. Participation

          3.1 Designation to Participate. Upon the designation of the Committee, and subject to
the approval of the Board of Directors, Employees may become Participants at any time during the
Plan Year. Each Employee initially selected by the Committee to participate in the Plan shall be
set forth on Exhibit A attached hereto and made a part hereof.

          3.2 Continuation of Participation. An Employee who has become a Participant shall
remain a Participant so long as benefits are payable to or with respect to such Participant under
the Plan.

     4. Benefit Requirements and Payments

          4.1 Supplemental ESOP Benefits. A Participant shall be entitled to receive as a
benefit from this Plan the supplemental ESOP benefit set forth below. In the event of the death of
a Participant prior to the commencement of payment of benefits hereunder, the Surviving Spouse of
the Participant shall be entitled to receive as a benefit from this Plan an amount equal to 100% of
the supplemental ESOP benefit that would have been payable to the Participant at the time of his
death. The supplemental ESOP benefit is denominated in shares of Phantom Stock equal to the sum of
the difference between “(a)” and “(b),” plus “(c)”, where:

	 	(a)	 	is the number of shares of Stock that would
have been allocated to the account of the Participant for a Plan Year
and the earnings thereon, had the limitations of Sections 401(a)(17)
and 415(c)(1)(A) and 415(c)(6) of the Code not been applicable;
	 
	 	(b)	 	is the number of shares of Stock actually
allocated to the account of the Participant for the relevant ESOP Plan
Year, and the earnings thereon; and
	 
	 	(c)	 	is the number of shares of Phantom Stock into
which the dividends and interest properly allocable to the
Participant’s account under the Plan can be converted, based on the
following: each Plan Year, a determination shall be made as to the
dividends and interest that would be allocated to such Participant’s
account hereunder for such year, based on the shares of Phantom Stock
allocated thereto.

4

 

	 	 	 	As of the last day of such Plan Year, the cash dividends and interest
so determined shall be converted to shares of Phantom Stock, based on
the fair market value of the Company’s Stock on such date.

          4.2 Incidents of Supplemental ESOP Payments. Benefits under this Section 4 shall be
payable to the Participant in a lump sum within 90 days of the first to occur of:

	 	(a)	 	the Participant’s “Separation from Service,”
other than due to death or Disability;
	 
	 	(b)	 	the Participant’s Disability;
	 
	 	(c)	 	the Participant’s death; or
	 
	 	(d)	 	a Change in Control of the Bank or the Company.

          Notwithstanding anything herein to the contrary, if the Participant is a Specified Employee
and the distribution under this Section is due to the Participants Separation from Service, the
distribution should occur on the first day of the seventh month following Separation from Service.

          4.3 Form of Supplemental ESOP Payments. A Participant’s supplemental ESOP benefits
under Section 4.1 of this Plan shall be a benefit paid in cash.

     5. Administration of the Plan

          5.1 Committee; Duties. This Plan shall be administered by the Committee which shall
consist of not less than three (3) persons appointed by the Board of Directors. The Committee shall
have the authority to make, amend, interpret and enforce all appropriate rules and regulations for
the administration of the Plan and decide or resolve any and all questions, including
interpretations of this Plan, that may arise in connection with the administration of the Plan;
provided, however, that any such interpretations, rules and/or regulations shall be consistent with
the requirements of Code Section 409A and any Treasury Regulations or other guidance issued
thereunder. A majority vote of the Committee members shall control any decision. Members of the
Committee may be Participants under the Plan.

          5.2 Agents. The Committee may, from time to time, employ other agents and delegate to
them such administrative duties as it sees fit, and may from time to time consult with counsel who
may be counsel to the Employer.

          5.3 Binding Effect of Decisions. The decision or action of the Committee regarding of
any question arising out of or in connection with the administration, interpretation and
application of the Plan and the rules and regulations promulgated hereunder shall be final and
conclusive and binding upon all persons having any interest in the Plan.

5

 

          5.4 Indemnity of Committee. The Employer shall indemnify and hold harmless the members
of the Committee against any and all claims, loss, damage, expense or liability arising from any
action or failure to act with respect to this Plan, except in the case of gross negligence or
willful misconduct.

     6. Claims Procedure

          6.1 Claim. Any person claiming a benefit, requesting an interpretation or ruling under
the Plan, or requesting information under the Plan shall present the request in writing to the
Committee which shall respond in writing within thirty (30) days.

          6.2 Denial of Claim. If the claim or request is denied, the written notice of denial
shall state:

	 	(a)	 	the reason for denial, with specific reference
to the Plan provisions on which the denial is based.
	 
	 	(b)	 	a description of any additional material or
information required and an explanation of why it is necessary.
	 
	 	(c)	 	an explanation of the Plan‘s claim review
procedure.

          6.3 Review of Claim. Any person whose claim or request is denied or who has not
received a response within thirty (30) days may request review by notice given in writing to the
Committee. The claim or request shall be reviewed by the Committee who may, but shall not be
required to, grant the claimant a hearing. On review, the claimant may have representation, examine
pertinent documents, and submit issues and comments in writing.

          6.4 Final Decision. The decision on review shall normally be made within sixty (60)
days. If an extension of time is required for a hearing or other special circumstances, the
claimant shall be notified and the time limit shall be one hundred twenty (120) days. The decision
shall be in writing and shall state the reason and the relevant plan provisions. All decisions on
review shall be final and bind all parties concerned.

     7. Amendment or Termination

          7.1 Amendment of Plan. A majority of the Board of Directors may amend this Plan at any
time or from time to time. However, no such amendment shall adversely affect the benefits of the
Participant which have accrued prior to such action.

          7.2 Plan Termination.

(a) Partial Termination. The Board may partially terminate the Plan by
freezing future accruals if, in its judgment, the tax, accounting, or other
effects of the continuance of the Plan, or potential payments thereunder,
would not be in the best interests of the Bank.

6

 

(b) Complete Termination. Subject to the requirements of Code Section 409A,
in the event of complete termination of the Plan, the Plan shall cease to
operate and the Bank shall pay out to the Participant his benefit as if the
Participant had terminated employment as of the effective date of the
complete termination. Such complete termination of the Agreement shall
occur only under the following circumstances and conditions:

	 	(i)	 	The Administrator may terminate the Plan
within 12 months of a corporate dissolution taxed under Code Section
331, or with approval of a bankruptcy court pursuant to 11 U.S.C.
§503(b)(1)(A), provided that the amounts deferred under the Plan are
included in the Participant’s gross income in the latest of (i) the
calendar year in which the Plan terminates; (ii) the calendar year
in which the amount is no longer subject to a substantial risk of
forfeiture; or (iii) the first calendar year in which the payment is
administratively practicable.
	 
	 	(ii)	 	The Board may terminate the Plan by Board
action taken within the 30 days preceding a Change in Control (but
not following a Change in Control), provided that the Plan shall
only be treated as terminated if all substantially similar
arrangements sponsored by the Bank are terminated so that the
Participant and all participants under substantially similar
arrangements are required to receive all amounts of compensation
deferred under the terminated arrangements within 12 months of the
date of the termination of the arrangements. For these purposes,
“Change in Control” shall be defined in accordance with the Treasury
Regulations under Code Section 409A.
	 
	 	(iii)	 	The Board may terminate the Plan
provided that (A) the termination and liquidation does not occur
proximate to a downturn in the financial health of the Bank or
Company, (B) all arrangements sponsored by the Bank that would be
aggregated with this Plan under Treasury Regulations Section
1.409A-1(c) if the Participant covered by this Plan was also covered
by any of those other arrangements are also terminated; (C) no
payments other than payments that would be payable under the terms
of the arrangement if the termination had not occurred are made
within 12 months of the termination of the arrangement; (D) all
payments are made within 24 months of the termination of the
arrangements; and (E) the Bank does not adopt a new arrangement that
would be aggregated with any terminated arrangement under Treasury
Regulations Section 1.409A-1(c) if the Participant participated
in both arrangements, at any time within three years following
the date of termination of the arrangement.

7

 

     8. Miscellaneous

          8.1 Unfunded Plan. This Plan is intended to be an unfunded plan maintained primarily
to provide deferred compensation benefits for a select group of management or highly compensated
employees. However, the Employer may elect to fund for the benefits of Participants as described in
Section 8.3 below. This Plan will continue to be unfunded for tax purposes and Title I of ERISA
even if benefits are funded by the Employer under Section 8.3 below.

          8.2 Unsecured General Creditor. The Participant and his Beneficiaries, heirs,
successors and assigns shall have no legal or equitable rights, interest or claims in any property
or assets of the Employer, nor shall they be beneficiaries of, or have any rights, claims or
interests in any life insurance policies, annuity contracts or the proceeds therefrom owned or
which may be acquired by the Employer. Such policies or other assets of the Employer shall not be
held under any trust for the benefit of Participants, their Beneficiaries, heirs, successors or
assigns, or held in any way as collateral security for the fulfilling of the obligations of
Employer under this Plan. Any and all of the Employer‘s assets shall be, and remain, the general,
unpledged, unrestricted assets of the Employer. The Employer‘s obligation under the Plan shall be
that of an unfunded and unsecured promise of the Employer to pay money in the future.

          8.3 Trust Fund. The Employer shall be responsible for the payment of all benefits
provided under the Plan. At its discretion, the Employer may establish one (1) or more trusts, with
such trustees as the Board may approve, for the purpose of providing for payment of such benefits.
Such trust or trusts may be irrevocable, but the assets thereof shall be subject to the claims of
the Employer‘s creditors. To the extent any benefits provided under the Plan are actually paid from
any such trust, the Employer shall have no further obligation with respect thereto, but to the
extent not so paid, such benefits shall remain the obligation of, and shall be paid by, the
Employer.

          8.4 Nonassignability. Neither the Participant nor any other person shall have any
right to commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber,
transfer, hypothecate or convey in advance of actual receipt the amounts, if any, payable
hereunder, or any part thereof, which are, and all rights to which are, expressly declared to be
unassignable and nontransferable. No part of the amounts payable shall, prior to actual payment, be
subject to seizure or sequestration for the payment of any debts, judgments, alimony or separate
maintenance owed by a Participant or any other person, nor be transferable
by operation of law in the event of a Participant‘s or any other person‘s bankruptcy or
insolvency.

8

 

          8.5 Expenses of Plan. All expenses of the Plan will be paid by the Employer.

          8.6 Payment of Employment and Code Section 409A Taxes. Any distribution under this
Plan shall be reduced by the amount of any taxes required to be withheld from such distribution.
This Plan shall permit the acceleration of the time or schedule of a payment to pay employment
related taxes as permitted under Treasury regulation Section 1.409A-3(j) or to pay any taxes that
may become due at any time that the arrangement fails to meet the requirements of Code Section 409A
and the regulations and other guidance promulgated thereunder. In the latter case, such payments
shall not exceed the amount required to be included in income as the result of the failure to
comply with the requirements of Code Section 409A.

          8.7 Acceleration of Payments. Except as specifically permitted herein or in other
sections of this Plan, no acceleration of the time or schedule of any payment may be made
hereunder. Notwithstanding the foregoing, payments may be accelerated hereunder by the Bank, in
accordance with the provisions of Treasury Regulation Section 1.409A-3(j)(4) and any subsequent
guidance issued by the United States Treasury Department. Accordingly, payments may be
accelerated, in accordance with requirements and conditions of the Treasury Regulations (or
subsequent guidance) in the following circumstances: (i) as a result of certain domestic relations
orders; (ii) in compliance with ethics agreements with the Federal government; (iii) in compliance
with ethics laws or conflicts of interest laws; (iv) in limited cash-outs (but not in excess of the
limit under Code Section 402(g)(1)(B)); (v) in the case of certain distributions to avoid a
non-allocation year under Code Section 409(p); (vi) to apply certain offsets in satisfaction of a
debt of the Participant to the Bank; (vii) in satisfaction of certain bona fide disputes between
the Participant and the Bank; or (viii) for any other purpose set forth in the Treasury Regulations
and subsequent guidance.

          8.8 Participation by Subsidiaries and Affiliates. If any employer is now or hereafter
becomes a subsidiary or affiliated company of the Employer and its employees participate in the
ESOP, the Board of Directors may authorize such subsidiary or affiliated company to participate in
this Plan upon appropriate action by such employer necessary to adopt the Plan.

          8.9 Delivery of Elections to Committee. All elections, designation, requests, notices,
instructions and other communications required or permitted under the Plan from the Employer, a
Participant, Beneficiary or other person to the Committee shall be on the appropriate form, shall
be mailed by first-class mail or delivered to such address as shall be specified by such Committee,
and shall be deemed to have been given or delivered only upon actual receipt thereof by such
Committee at such location.

          8.10 Delivery of Notice to Participants. All notices, statements, reports and other
communications required or permitted under the Plan from the Employer or the Committee to any
Officer, Participant, Beneficiary or other person, shall be deemed to have been duly given when
delivered to, or when mailed by first-class mail, postage prepaid, and addressed to such person at
this address last appearing on the records of the Committee.

9

 

     9. Construction of the Plan

          9.1 Construction of the Plan. The provisions of this Plan shall be construed,
regulated, and administered according to the laws of the State of New York, to the extent not
superseded by Federal law.

          9.2 Counterparts. This Plan has been established by the Employer in accordance with
the resolutions adopted by the Board of Directors and may be executed in any number of
counterparts, each of which shall be deemed to be an original. All the counterparts shall
constitute one instrument, which may be sufficiently evidenced by any one counterpart.

          9.3 Validity. In case any provision of this Plan shall be held illegal or invalid for
any reason, said illegality or invalidity shall not affect the remaining parts hereof, but this
Plan shall be construed and enforced as if such illegal or invalid provision had never been
inserted herein.

[signature page follows]

10

 

     IN WITNESS WHEREOF, and as evidence of the adoption of the Plan by the Employer, it has caused
the same to be signed by its Officer duly authorized, and its corporate seal to be affixed this ___
day of                                        , 200___.

	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	NORTHFIELD BANK

	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	 	 	          Chairman of the Board, Chief Executive	 	 
	 

	 	 	 	 	 	          Officer and President	 	 

11

 

NORTHFIELD BANK

Exhibit A

Participant                     Date of Participation

A-1

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