Newport Bancorp Inc
EXHIBIT 10.9
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<DESCRIPTION>EXHIBIT 10.9
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>Exhibit 10.9 </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>AMENDMENT TO THE </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>NEWPORT FEDERAL SAVINGS BANK </B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>CHANGE IN CONTROL AGREEMENT </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%" ALIGN="justify"><FONT FACE="Times New Roman"
SIZE="2"><B>WHEREAS, Paul Nardone </B>(the &#147;Executive&#148;) entered into a change in control </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">agreement with <B>Newport Federal
Savings Bank</B> (the &#147;Bank&#148;) effective October&nbsp;15, 2005 (the </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">&#147;Agreement&#148;); and </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2"><B>WHEREAS,</B> in connection with the mutual to stock conversion of the Bank, the Bank </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">and the Executive desire to amend the Agreement to include Newport Bancorp, Inc. as a </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"
ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">guarantor of the payments under the Agreement and to facilitate some ministerial changes; and </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%" ALIGN="justify"><FONT
FACE="Times New Roman" SIZE="2"><B>WHEREAS,</B> the Agreement provides that the Agreement may be amended or modified </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">at any time prior to a
Change in Control by means of a written instrument signed by the parties. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2"><B>NOW, THEREFORE, </B>the Bank and the
Executive hereby agree to amend the </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">Agreement as follows: </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>FIRST CHANGE </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">Effective as of the closing of the Company&#146;s initial public
offering, the first </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">paragraph of the Agreement shall be amended to add the following sentence to the end of </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">the paragraph: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">&#147;Newport
Bancorp, Inc., the holding company of the Bank (the &#147;Holding </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">Company&#148;) will serve as guarantor under this Agreement.&#148;
</FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>SECOND CHANGE </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%" ALIGN="justify"><FONT FACE="Times New Roman"
SIZE="2">Effective as of the closing of the Company&#146;s initial public offering, Section&nbsp;2(c) </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">shall be deleted in its entirety and
replaced with the following new Section&nbsp;2(c): </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">&#147;For purposes of this Agreement, a &#147;Change in Control&#148;
means the occurrence of </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">any one of the following events: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"
ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">(1) <U>Merger</U>: The Company or the Bank merges into or consolidates with another </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT FACE="Times New Roman"
SIZE="2">corporation, or merges another corporation into the Company or the Bank, and as a result less </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">than a majority of the combined
voting power of the resulting corporation immediately after the </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">merger or consolidation is held by persons who were stockholders of the
Company or the Bank </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">immediately before the merger or consolidation. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">(2) <U>Acquisition of Significant Share Ownership</U>: The Company files, or is required to </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">file, a report on Schedule 13D or another form or schedule (other than Schedule 13G) required </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"
ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">under Sections 13(d) or 14(d) of the Securities Exchange Act of 1934, if the schedule discloses </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT
FACE="Times New Roman" SIZE="2">that the filing person or persons acting in concert has or have become the beneficial owner of </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">25% or more
of a class of the Company&#146;s voting securities, but this clause (b)&nbsp;shall not apply to </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">beneficial ownership of Company voting shares held in a fiduciary capacity by an entity of </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">which the Company directly or indirectly beneficially owns 50% or more of its outstanding </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"
ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">voting securities. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">(3) <U>Change in Board Composition</U>: During
any period of two consecutive years, </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">individuals who constitute the Company&#146;s or the Bank&#146;s Board of Directors at the beginning
of </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">the two-year period cease for any reason to constitute at least a majority of the Company&#146;s or the </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">Bank&#146;s Board of Directors; provided, however, that for purposes of this clause (iii), each director </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">who is first elected by the board (or first nominated by the board for election by the </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"
ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">stockholders) by a vote of at least two-thirds of the directors who were directors at the beginning </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT
FACE="Times New Roman" SIZE="2">of the two-year period shall be deemed to have also been a director at the beginning of such </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">period;
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">(4) <U>Sale of Assets</U>: The Company or the Bank sells to a third party all or substantially </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">all of its assets. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>THIRD CHANGE
</B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">Effective as of the closing of the Company&#146;s initial public offering, Section&nbsp;5 of </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">the Agreement shall be deleted in its entirety and replaced with the following new </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"
ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">Section&nbsp;5: </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2"><B>&#147;5. <U>Source of Payments</U>.
</B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">All payments provided in this Agreement shall be timely paid in cash or check </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">from the general funds of the Bank. The Company, however, unconditionally guarantees </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"
ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">payment and provision of all amounts and benefits due hereunder to Executive and, if </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT FACE="Times New Roman"
SIZE="2">such amounts and benefits due from the Bank are not timely paid or provided by the </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">Bank, such amounts and benefits shall be paid
or provided by the Company.&#148; </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">2 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2"><B>IN WITNESS WHEREOF, </B>the Bank has caused this Amendment to the Agreement to
</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">be executed by its duly authorized officer, and Executive has signed this Amendment, on the 18</FONT><FONT FACE="Times New Roman" SIZE="1"
COLOR="#000000"><SUP>th</SUP></FONT><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"> </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">day of July 2006. </FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top"> <P ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">ATTEST:</FONT></P></TD>
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<TD VALIGN="bottom"> <P ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2"><B>NEWPORT FEDERAL SAVINGS BANK</B></FONT></P></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-bottom:1px;border-bottom:1px solid #000000" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">/s/ Judy Tucker</FONT></P></TD>
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<TD VALIGN="top"> <P STYLE="margin-bottom:1px;border-bottom:1px solid #000000" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">/s/ Kevin M. McCarthy</FONT></P></TD></TR>
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<TD VALIGN="top"> <P ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">For the Board of Directors</FONT></P></TD></TR>
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<TD VALIGN="top"> <P ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2"><B>NEWPORT BANCORP, INC.</B></FONT></P></TD></TR>
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<TD VALIGN="top"> <P ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2"><I>(as guarantor)</I></FONT></P></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-bottom:1px;border-bottom:1px solid #000000" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">/s/ Kevin M. McCarthy</FONT></P></TD></TR>
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<TD VALIGN="top"> <P ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">For the Board of Directors</FONT></P></TD></TR>
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<TD VALIGN="top"> <P ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2"><B>EXECUTIVE</B></FONT></P></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-bottom:1px;border-bottom:1px solid #000000" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">/s/ Judy Tucker</FONT></P></TD>
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<TD VALIGN="top"> <P STYLE="margin-bottom:1px;border-bottom:1px solid #000000" ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">/s/ Paul Nardone</FONT></P></TD></TR>
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<TD VALIGN="top"> <P ALIGN="justify"><FONT FACE="Times New Roman" SIZE="2">Paul Nardone</FONT></P></TD></TR>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">3 </FONT></P>

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