EXHIBIT 10.18
                                                                   -------------





                                 TRUST AGREEMENT




                                     BETWEEN




                            THE WARWICK SAVINGS BANK




                                       AND




                               MARINE MIDLAND BANK




                                     FOR THE




                            THE WARWICK SAVINGS BANK
                     401(K) SAVINGS PLAN EMPLOYER STOCK FUND




                   -------------------------------------------


                      Entered into as of November 21, 1997



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                                                 TABLE OF CONTENTS
                                                 -----------------

                                                                                                               PAGE

                                                     Article I

                                                    DEFINITIONS

<S>                        <C>                                                                                 <C>
         Section 1.01      Specific Definitions.................................................................-1-


                                                     Article II

                                             ESTABLISHMENT OF THE TRUST

         Section 2.01      Establishment of Trust...............................................................-2-
         Section 2.02      Purposes of Trust....................................................................-2-


                                                    Article III

                                                   ADMINISTRATION

         Section 3.01      Appointment of Committee.............................................................-3-
         Section 3.02      Action of the Committee..............................................................-3-
         Section 3.03      Plan Administrator...................................................................-3-
         Section 3.04      Duties of the Trustee................................................................-4-
         Section 3.05      Trustee as Agent.....................................................................-4-


                                                     Article IV

                                                    INVESTMENTS

         Section 4.01      General Investment Operations........................................................-4-
         Section 4.02      Investment Funds.....................................................................-5-
         Section 4.03      Appointment of Investment Manager....................................................-5-
         Section 4.04      Investment Decisions.................................................................-6-
         Section 4.05      Brokerage............................................................................-7-
         Section 4.06      Investment in Collective Funds.......................................................-7-
         Section 4.07      Liquidity............................................................................-7-







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                                                                                                               PAGE


                                                     Article V

                                                 POWERS OF TRUSTEE

         Section 5.01      Specific Powers......................................................................-8-
         Section 5.02      Discretionary Powers.................................................................-9-


                                                     Article VI

                                         PAYMENTS OF BENEFITS AND EXPENSES

         Section 6.01      Authorization by Plan Administrator.................................................-10-
         Section 6.02      Representations by the Plan Administrator...........................................-11-
         Section 6.03      Form of Payment.....................................................................-11-
         Section 6.04      Fees and Expenses of Trustee........................................................-11-
         Section 6.05      Taxes...............................................................................-11-


                                                    Article VII

                                          VOTING RIGHTS AND TENDER OFFERS

         Section 7.01      Exercise of Voting Rights...........................................................-12-
         Section 7.02      Response to Tender Offers and Similar Events........................................-13-
         Section 7.03      Dissent and Appraisal Rights........................................................-14-

                                                    Article VIII

                                              LIABILITY OF THE TRUSTEE

         Section 8.01      Contributions.......................................................................-15-
         Section 8.02      Claims Limited to the Trust Fund....................................................-15-
         Section 8.03      Retention of Advisors...............................................................-16-
         Section 8.04      Qualification of Plan and Trust.....................................................-16-
         Section 8.05      General Duties of Trustee...........................................................-16-
         Section 8.06      No Liability for Acts of Others.....................................................-16-
         Section 8.07      Indemnification.....................................................................-17-
         Section 8.08      Communications......................................................................-19-
         Section 8.09      Proof of Matters....................................................................-19-
         Section 8.10      Party in Interest Information.......................................................-20-
         Section 8.11      Disputes............................................................................-20-


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                                                                                                               PAGE



                                                     Article IX

                                             ACCOUNTING OF THE TRUSTEE

         Section 9.01      Keeping of Accounts.................................................................-20-
         Section 9.02      Rendering of Accounts...............................................................-20-
         Section 9.03      Discharge of Trustee................................................................-21-
         Section 9.04      Right to Judicial Settlement........................................................-21-


                                                     Article X

                                       REMOVAL AND RESIGNATION OF THE TRUSTEE

         Section 10.01     Removal or Resignation..............................................................-21-
         Section 10.02     Successor Trustee...................................................................-22-
         Section 10.03     Delivery of Trust Fund..............................................................-22-


                                                     Article XI

                                             AMENDMENT AND TERMINATION

         Section 11.01     Amendment...........................................................................-22-
         Section 11.02     Termination.........................................................................-22-


                                                    Article XII

                                                   MISCELLANEOUS

         Section 12.01     Merger of Trustee...................................................................-23-
         Section 12.02     Affiliated Companies................................................................-23-
         Section 12.03     Alienation of Trust Fund............................................................-24-
         Section 12.04     Applicable Law......................................................................-24-
         Section 12.05     Headings Not Part of the Agreement..................................................-24-
         Section 12.06     Multiple Copies.....................................................................-24-



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                                 TRUST AGREEMENT

                                     FOR THE

                            THE WARWICK SAVINGS BANK

                     401(K) SAVINGS PLAN EMPLOYER STOCK FUND


                  This AGREEMENT ("Agreement") has been made as of the 21st day
of November, 1997 between THE WARWICK SAVINGS BANK, a savings bank organized
under the laws of the State of New York with its principal place of business at
18 Oakland Avenue, Warwick, New York 10990 ("Bank") and MARINE MIDLAND BANK, a
bank organized under the laws of the State of New York, with a principal place
of business at 140 Broadway, New York, New York 10005 ("Trustee").


                              W I T N E S S E T H :

                  WHEREAS, the Bank maintains The Warwick Savings Bank 401(k)
Savings Plan ("Plan") for the exclusive benefit of certain of its employees and
their beneficiaries; and

                  WHEREAS, the Plan contemplates the establishment of one or
more trusts to hold, invest and administer amounts contributed under the Plan,
and the Bank desires to establish an investment fund that will invest primarily
in shares of common stock of Warwick Community Bancorp, Inc. ("Shares"); and

                  WHEREAS, the Trustee has agreed to hold, invest and administer
the assets of the Plan that are held under this Trust Fund (as defined in
Section 1.01(g)) on the terms set forth in this
Agreement.

                  NOW, THEREFORE, in consideration of the premises and the
mutual covenants contained herein, the Bank and the Trustee hereby agree as
follows:


                                    ARTICLE I

                                   DEFINITIONS

                  SECTION 1.01      SPECIFIC DEFINITIONS.

                  The following terms as used in this Agreement have the
meanings indicated unless the context requires otherwise:

                  (a) "Board" means the Board of Trustees of the Bank prior to
the conversion of the Bank from mutual to stock form and the Board Directors of
the Bank thereafter.




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                  (b) "Committee" means the committee appointed by the Bank
under Section 3.01 of this Agreement.

                  (c) "ERISA" means the Employee Retirement Income Security Act
of 1974, as it has been and may be amended, and corresponding provisions of
future laws, as they may be amended.

                  (d) "Internal Revenue Code" means the Internal Revenue Code of
1986, as it has been and may be amended, and corresponding provisions of future
laws, as they may be
amended.

                  (e) "Participant" means a person for whose benefit
contributions have been made to the Trust Fund under the Plan.

                  (f) "Prohibited Transaction" has the meaning of that term
under ERISA and the Internal Revenue Code.

                  (g) "Trust Fund" means the assets held under this Trust by the
Trustee, including contributions made under the Plan which are transferred to
the Trustee by the Bank, a predecessor or co-trustee and any income and
appreciation, and reinvestments attributable thereto.


                                   ARTICLE II

                           ESTABLISHMENT OF THE TRUST

                  SECTION 2.01      ESTABLISHMENT OF TRUST.

                  The Bank hereby establishes with the Trustee a Trust for the
purpose of holding and administering the Trust Fund in accordance with this
Agreement. Such Trust shall continue for such time as may be necessary to
accomplish the purpose for which it was created, subject to the
provisions of Section 10.02.

                  SECTION 2.02      PURPOSES OF TRUST.

                  The Bank and the Trustee shall discharge their duties with
respect to the Trust Fund for, and the Trust Fund shall be used solely for and
not diverted from, the exclusive purpose of providing benefits to Participants
and their beneficiaries who are entitled to benefits under the Plan, other than
such part as is required to pay taxes and reasonable expenses of administering
the Plan. Notwithstanding the preceding sentence, however, contributions may be
returned to the Bank by the Trustee at the direction of the Committee as
hereinafter provided, if the Committee certifies in writing to the Trustee that
one or both of the following circumstances exist and that the Plan permits such
repayments:

                  (a) If a contribution is made by the Bank by a mistake of
fact, the contribution may be returned to the Bank within one year after it was
paid to the Trustee;


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                  (b) If a contribution is conditioned upon its deductibility
under Section 404 of the Internal Revenue Code, the contribution, to the extent
the deduction is disallowed by the Internal Revenue Service, may be returned to
the Bank within one year after the disallowance or, if such disallowance is
appealed to the courts, within one year after the date a court decision
upholding such disallowance becomes final.

                  For purposes of this Section, the word "contribution" has the
same meaning as it does in Section 403(c) of ERISA.


                                   ARTICLE III

                                 ADMINISTRATION

                  SECTION 3.01      APPOINTMENT OF COMMITTEE.

                  The Bank shall appoint a Committee of one or more persons to
represent it in dealing with the Trustee under this Agreement. The Secretary or
assistant Secretary of the Bank shall promptly give the Trustee a certified copy
of each Board resolution appointing or removing a member of the Committee or
approving any action with respect to this Agreement. Until it receives such
written notice that a person is no longer a member of the Committee, the Trustee
shall be fully protected in assuming that the person is still a member of the
Committee. When the Secretary or Assistant Secretary delivers to the Trustee a
certified copy of a resolution of the Board appointing a member of the
Committee, he shall also deliver a specimen signature of that member. The
members of the Committee shall be "named fiduciaries" within the meaning of
Section 402(a) of ERISA with respect to the Plan and the Trust. If at any time
no members are currently serving as the Committee, or if no Committee is
appointed, the Board shall be deemed to be the Committee.

                  SECTION 3.02      ACTION OF THE COMMITTEE.

                  The Bank shall certify to the Trustee the names and specimen
signatures of the members of the Committee appointed by the Bank to give
directions to the Trustee. Such certification shall include directions as to the
number of signatures required for any communication or direction to the Trustee.
The Bank shall promptly give notice to the Trustee of changes in the membership
of the Committee. The Committee may also certify to the Trustee the name of any
person, together with a specimen signature of any such person, authorized to act
for it in relation to the Trustee. The Committee shall promptly give notice to
the Trustee of any change in any person authorized to act on behalf of it. For
all purposes under this Agreement, until any such notice is received by the
Trustee, the Trustee shall be fully protected in assuming that the membership of
the Committee and the authority of any person certified to act in its behalf
remain unchanged.

                  SECTION 3.03      PLAN ADMINISTRATOR.

                  The Bank shall certify to the Trustee the name and specimen
signature of the Plan Administrator appointed by the Bank to administer the Plan
and give directions to the Trustee. Such


                                       -3-

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certification shall include directions as to the number of signatures required
for any communication or direction to the Trustee. The Bank shall promptly give
notice to the Trustee of changes in the identity of the Plan Administrator. The
Plan Administrator may also certify to the Trustee the name of any person,
together with a specimen signature of any such person, authorized to act for the
Plan Administrator in relation to the Trustee. The Plan Administrator shall
promptly give notice to the Trustee of any change in any person authorized to
act on behalf of the Plan Administrator. For all purposes under this Agreement,
until any such notice is received by the Trustee, the Trustee shall be fully
protected in assuming that the identity of the Plan Administrator and the
authority of any person certified to act on the Plan Administrator's behalf
remain unchanged.

                  SECTION 3.04      DUTIES OF THE TRUSTEE.

                  The Trustee shall have only those duties specifically assumed
by it in this Agreement. The Trustee shall have no responsibility to administer
or interpret the Plan, to enforce payment of any contributions to the Trust
Fund, or to see that the Trust Fund is adequate to meet liabilities under the
Plan. The Trustee shall be fully protected in acting upon any instrument,
certificate or paper reasonably believed by it to be genuine and to be signed or
presented by the proper person or persons, and the Trustee shall be under no
duty to make any investigation or inquiry as to any statement contained in any
such writing but may accept the same as conclusive evidence of the truth and
accuracy of the statements therein contained. The Trustee shall not be liable
for the proper application of any part of the Trust Fund if payments are made in
accordance with the written directions of the Committee or the Plan
Administrator as herein provided. All persons dealing with the Trustee are
released from inquiry into the decision or authority of the Trustee and from
seeing to the application of any monies, securities or other property paid or
delivered to the Trustee.

                  SECTION 3.05      TRUSTEE AS AGENT.

                  The Bank or anyone acting on its behalf may at any time employ
the Trustee in its corporate (and not its fiduciary) capacity, in addition to
its duties provided hereunder, as agent to perform any act, keep any records or
accounts, or make any computations required by the Bank or the Committee. Any
such agency relationship shall be established by a separate agreement between
the Bank and the Trustee and the existence of such arrangement shall not affect
its responsibilities as Trustee under this Agreement.


                                   ARTICLE IV

                                   INVESTMENTS

                  SECTION 4.01      GENERAL INVESTMENT OPERATIONS.

                  The Trust Fund shall be held by the Trustee and shall be
invested and reinvested as hereinafter provided in this Article IV, without
distinction between principal and income and without regard to the restrictions
of the laws of the State of New York, or of any other jurisdiction, relating to
the investment of trust funds.


                                       -4-

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                  SECTION 4.02      INVESTMENT FUNDS.

                  (a) The Trustee shall establish and maintain an investment
fund, to be known as the Employer Stock Fund, which fund shall be invested in
Shares and, only to the extent provided in Section 4.07 or pending investment in
Shares, in cash and short-term investments.

                  (b) The Trustee shall establish and maintain, for the
investment of the Trust Fund, such separate investment funds in addition to the
Employer Stock Fund established pursuant to Section 4.02(a), (individually, the
Employer Stock Fund and such other investment funds are referred to herein as an
"Investment Fund"), as the Bank may request by written notice to the Trustee.

                  (c) To the extent directed to do so pursuant to Section 4.04,
the Trustee shall hold and invest amounts paid over to it pursuant to this
Agreement in such Investment Funds as shall have been established in accordance
with Section 4.02(a) and 4.02(b), and shall allocate amounts paid over to it
among the Investment Funds in the manner and in the proportion designated by the
Committee or such other person or entity selected by the Committee. The Trustee
shall also credit to each Investment Fund all earnings and appreciation
allocable thereto and shall charge against each such fund any depreciation,
losses, expenses, payments and distributions allocable thereto.

                  (d) The Trustee shall invest and reinvest amounts allocated to
each Investment Fund in accordance with such written investment criteria as
shall be established by the Committee and communicated in writing to the
Trustee. Notwithstanding any such investment criteria, the Trustee is authorized
to retain in an Investment Fund, for as long as it is deemed advisable by the
person responsible for directing the investment of the particular Investment
Fund, (i) any securities or other property received by means of a dividend,
distribution, exchange, conversion, liquidation or otherwise than by initial
purchase; and (ii) any investments which were authorized hereunder when made by
the Trustee.

                  SECTION 4.03      APPOINTMENT OF INVESTMENT MANAGER.

                  (a) The Committee may, in its discretion, appoint an
investment manager ("Investment Manager") to direct the investment and
reinvestment of all or any portion of the Trust Fund. Any such Investment
Manager shall either: (i) be registered as an investment adviser under the
Investment Advisers Act of 1940, as amended ("Investment Advisers Act"); (ii) be
a bank, as defined in the Investment Advisers Act; or (iii) be an insurance
company qualified to perform investment services under the laws of more than one
state.

                  (b) The Committee shall give written notice to the Trustee of
the appointment of an Investment Manager pursuant to Section 4.03(a). Such
notice shall include: (i) a specification of the portion of the Trust Fund to
which the appointment applies; (ii) a certification by the Committee that the
Investment Manager satisfies the requirements of Section 4.03(a)(i), (ii) or
(iii); (iii) a copy of the instruments appointing the Investment Manager and
evidencing the Investment Manager's acceptance of the appointment; (iv)
directions as to the manner in which the Investment Manager is authorized to
give instructions to the Trustee, including the persons authorized to give


                                       -5-

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instructions and the number of signatures required for any written instruction;
(v) an acknowledgment by the Investment Manager that it is a fiduciary of the
Plan; and (vi) if applicable, a certificate evidencing the Investment Manager's
current registration under the Investment Advisers Act. For purposes of this
Agreement, the appointment of an Investment Manager pursuant to this Section
4.03 shall become effective as of the effective date specified in such notice,
or, if later, as of the date on which the Trustee receives proper notice of such
appointment.

                  (c) The Committee shall give written notice to the Trustee of
the resignation or removal of an Investment Manager previously appointed
pursuant to this Section 4.03. From and after the date on which the Trustee
receives such notice, or, if later, the effective date of the resignation or
removal specified in such notice, the Committee shall be responsible, in
accordance with this Section 4.03, for the investment and reinvestment of the
portion of the Trust Fund theretofore managed by such Investment Manager, until
such time as a successor Investment Manager has been duly appointed pursuant to
this Section 4.03.

                  SECTION 4.04      INVESTMENT DECISIONS.

                  (a) The Trustee shall invest and reinvest the Trust Fund as
follows:

                           (i)      To the extent that any portion of the Trust
                                    Fund shall be allocated to an Investment
                                    Fund other than the Employer Stock Fund,
                                    such portion of the Trust fund shall be
                                    invested and reinvested:

                                    (A)     by the Trustee, in its discretion;
                                            or

                                    (B)     if an Investment Manager is
                                            appointed to direct the investment
                                            of amounts allocated to such
                                            Investment Fund, in accordance with
                                            the directions of such Investment
                                            Manager;
                                            and

                           (ii)     to the extent that any portion of the Trust
                                    Fund is allocated to the Employer Stock
                                    Fund, such portion of the Trust Fund shall
                                    be invested and reinvested in Shares at such
                                    prices and at such times as the Trustee, in
                                    its discretion, may determine.

The Trustee shall be under no duty or obligation to review any investment to be
acquired, held or disposed of pursuant to directions of the Committee, any
Investment Manager nor to make any recommendation with respect to the
disposition or continued retention of any such investment. To the extent that
the Trustee is subject to direction by the Committee or an Investment Manager,
or the Trustee is acting pursuant to Section 4.04(c), the Bank hereby agrees to
indemnify the Trustee and hold it harmless from and defend it against any claim
or liability which may be asserted against the Trustee by reason of any action
or inaction by it pursuant to a direction by the Committee or by an Investment
Manager or failing to act in the absence of any such direction.



                                       -6-

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                  (b) The Committee or an Investment Manager appointed pursuant
to Section 4.03 may, from time to time, issue orders for the purchase or sale of
securities directly to a broker. Written notification of the issuance of each
such order shall be given promptly to the Trustee by the Committee or the
Investment Manager, and the execution of each such order shall be confirmed by
written advice to the Trustee by the broker. Such notification shall be
authority for the Trustee to pay for securities purchased against receipt
thereof and to deliver securities sold against payment therefor, as the case may
be.

                  (c) To the extent that neither the Committee nor an Investment
Manager furnishes directions as to the investment of any portion of the Trust
Fund that is subject to its direction, to the extent provided by ERISA, the
Trustee shall invest and reinvest the Trust Fund in any savings account, time or
other interest bearing deposit or in any other interest bearing obligation of
any one or more banks, savings banks, savings and loan associations and other
financial institutions, or any of them, including any subsidiary of the Bank,
or, subject to Section 4.06, in any commingled, collective, common or group
trust fund at least 75 % of the assets of which are invested in such savings
accounts, time or other interest bearing deposits or other interest bearing
obligations.

                  SECTION 4.05      BROKERAGE.

                  The Trustee shall have the power and authority to be exercised
in its sole discretion at any time and from time to time to issue and place
orders for the purchase or sale of securities directly with qualified brokers or
dealers. Such orders may be placed with such qualified brokers and/or dealers
who also provide investment information or other research or statistical
services to the Trustee in its capacity as a fiduciary or investment manager for
other clients.

                  SECTION 4.06      INVESTMENT IN COLLECTIVE FUNDS.

                  The Trustee may from time to time temporarily transfer any
assets of the Trust Fund to, or withdraw the same from, any pooled investment
fund or group or collective trusts maintained by a bank or trust company (which
may be the Trustee or an affiliate of the Trustee) supervised by a state or
federal agency, which has been determined by the Internal Revenue Service to be
a qualified trust or fund exempt from federal income tax under Section 501(a) of
the Internal Revenue Code, and which has been established to permit separate
pension and profit sharing trusts qualified under Section 401(a) of the Internal
Revenue Code to pool some or all of their funds for investment purposes. To the
extent the Trust Fund is invested in such a pooled fund or group or collective
trust, the terms of the instrument establishing such pooled fund or group or
collective trust are made a part of this Agreement as fully as if set forth at
length herein. The commingling of assets of this Trust with assets of other
qualified participating trusts in such pooled funds or group or collective
trusts is specifically authorized.

                  SECTION 4.07      LIQUIDITY.

                  Notwithstanding any provision of this Article IV to the
contrary, the Trustee, in its sole discretion or as the Committee may request,
may retain uninvested cash or cash balances, and sell, to provide cash or cash
balances, such investments in whatever portion of the Trust Fund that


                                       -7-

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it may deem advisable without being required to pay interest thereon. Pending
investment, the Trustee, in its sole discretion, may temporarily invest any
funds held or received by it for investment in an investment fund established
hereunder in commercial paper or in obligations or, or guaranteed
by, the United States government or any of its agencies.


                                    ARTICLE V

                                POWERS OF TRUSTEE

                  SECTION 5.01      SPECIFIC POWERS.

                  In addition to, and not in limitation of, the powers now, or
which may later become, vested in it by law or by other provisions of this
Agreement, but subject to Section 2.02, Section 4.04 and this Article V, the
Trustee is authorized and empowered:

                  (a) to purchase, receive or subscribe for Shares (for which
the Trustee shall pay no more than "adequate consideration," as defined in
Section 3(18) of ERISA and shall pay no commission), other securities or other
property and to retain in trust such Shares, other securities or other property;

                  (b) to sell, exchange, redeem, transfer, and otherwise dispose
of, by private agreement or public auction, any property held in the Trust Fund;
and no person dealing with the Trustee need see to the application of the
consideration paid therefor or inquire into the validity, expediency, or
propriety of any such transaction;

                  (c) subject to the provisions of Article VII, to exercise
voting rights either in person, by limited or general power of attorney, or by
proxy, with respect to Shares and other stocks, securities or other property,
and generally to exercise with respect to Trust Fund assets all rights, powers,
and privileges that may be lawfully exercised by any person owning similar
property in his own right;

                  (d) subject to the provisions of Article VII, to exercise any
options, conversion rights, or rights to subscribe for additional Shares,
stocks, bonds or other securities appurtenant to any Shares, stocks, bonds or
other securities held by it, and to make any necessary payments in connection
with such exercise; to join in, dissent from, and oppose the reorganization,
consolidation, recapitalization, liquidation, merger, or sale, mortgage, pledge
or lease, of corporate property with respect to any corporations or property in
which it may be interested as Trustee; to deposit any property with any
protective, reorganization or similar committee, and to pay or agree to pay part
of the expenses and compensation of any committee and any assessments levied
with respect to property so deposited; and

                  (e) to compromise, compound, submit to arbitration or settle
any debt or obligation owing to or from it as Trustee; to reduce or increase the
rate of interest on extension, or otherwise modify, foreclose upon default, or
otherwise enforce any such obligation.


                                       -8-

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ln exercising such powers with respect to any portion of the Trust Fund that is
invested in the discretion of the Trustee or pursuant to Section 4.04(c), the
Trustee shall act in its discretion. In exercising such powers with respect to
directions of the Committee or of an Investment Manager, the Trustee shall act
in accordance with directions provided by the Committee or Investment Manager.
The Trustee shall be under no duty or obligation to review any action to be
taken, nor to recommend any action, pursuant to this Section 5.01 with respect
to any portion of the Trust Fund that is under the direction of the Committee or
an Investment Manager. The Trustee shall have no liability of responsibility
for, and the Bank agrees to indemnify the Trustee and hold it harmless from and
defend it against any claim or liability which may be asserted against the
Trustee by reason of, its actions or inaction pursuant to the direction of, or
its failure to act in the absence of directions from, the Committee, the Plan
Administrator or an Investment Manager, except to the extent provided in Section
8.06.

                  SECTION 5.02      DISCRETIONARY POWERS.

                  In addition to and not by way of limitation of any other
powers conferred upon the Trustee by law or other provisions of this Agreement,
but subject to Section 2.02 and this Article V, the Trustee is authorized and
empowered, in its discretion:

                  (a) to sue or defend suits or legal proceedings to protect or
enforce any interest in the Trust and to represent the Trust in all suits or
legal proceedings in any court or before any other administrative agency, body
or tribunal, where it is advised by counsel that such action is required by
applicable law;

                  (b) to organize corporations and/or partnerships or
established ancillary or subsidiary trusts under the laws of any jurisdiction
for the purpose of holding title to any property
held in the Trust Fund;

                  (c) to borrow, subject to the provisions of Article VI and
ERISA, for the purpose of the Trust from any person or persons, and for any sums
so borrowed to issue its promissory note as Trustee and to secure the repayment
thereof by pledging all or any part of the assets of the Trust fund; no person
lending money to the Trustee shall be required to see to the application of the
money lent or to inquire into the validity, expediency, or propriety of any such
borrowing;

                  (d) to hold part of the Trust Fund uninvested in cash or cash
balances for liquidity purposes and not be required to pay interest thereon;

                  (e) to hold any property at any place, except that it shall
not maintain the indicia of ownership of any assets of the Trust Fund outside
the jurisdiction of the district courts of the United States except as permitted
by regulations issued by the Secretary of Labor of the United
States under Section 404(b) or ERISA.

                  (f) to make, sign, acknowledge, and deliver deeds, leases,
assignments, and other instruments;



                                       -9-

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                  (g) to cause any property to be registered in the name of its
nominee, or to hold any such property in such form that it will pass by delivery
and, in accordance with Sections
11-1.8
and 11-1.9 of the Estates, Powers and Trusts Law of the State of New York, to
deposit or arrange for the deposit of any securities held by it with the Federal
Reserve Bank of New York or in a clearing corporation (as defined in the New
York State Uniform Commercial Code); provided, however, that the records of the
Trustee shall at all times show that any such property held or registered in the
name of another is part of the Trust Fund;

                  (h) to employ legal counsel, brothers, and other advisors,
agents, or employees to perform services for the Trust Fund or to advise it with
respect to its duties and obligations under this Agreement and in connection
with the Trust, and to pay to them from the Trust Fund such compensation as it
deems appropriate; and

                  (i) generally to do all acts, whether or not expressly
authorized, which the Trustee may deem necessary or desirable for the protection
of the Trust Fund.


                                   ARTICLE VI

                        PAYMENTS OF BENEFITS AND EXPENSES

                  SECTION 6.01      AUTHORIZATION BY PLAN ADMINISTRATOR.

                  The Trustee shall pay benefits and administrative expenses
under the Plan, transfer funds to any other trust fund established under the
Plan or make direct transfers to other tax-qualified plans, only when it
receives (and in accordance with) written instructions of the Plan Administrator
indicating the amount of the payment and the name and address of the recipient.
The Trustee need not inquire into whether any payment the Plan Administrator
instructs it to make is consistent with the terms of the Plan or applicable law
or otherwise proper. Any payment made by the Trustee in accordance with such
instructions shall be a complete discharge and acquittance to the Trustee. If
the Plan Administrator advises the Trustee that benefits have become payable
with respect to a Participant's interest in the Trust Fund but does not instruct
the Trustee as to the manner of payment, the Trustee shall hold the
Participant's interest in the Trust until it receives written instructions from
the Plan Administrator as to the manner of payment. The Trustee shall not pay
benefits from the Trust Fund without such instructions, even though it may be
informed from other sources, including, without limitation, a Participant or
beneficiary, that benefits are payable under the Plan. The Trustee shall have no
responsibility to determine when, to whom, or in what amount benefits and
expenses are payable under the Plan. If the Plan Administrator so directs, the
Trustee shall segregate amounts payable with respect to the interest in the Plan
of any Participant and administer them separately from the rest of the Trust
Fund in accordance with the Plan Administrator's instructions. The Plan
Administrator shall certify to the Trustee that any such instructions are
consistent with the Plan.



                                      -10-

<PAGE>



                  SECTION 6.02      REPRESENTATIONS BY THE PLAN ADMINISTRATOR.

                  The Trustee may require the Plan Administrator to certify in
writing that any payment of benefits or expenses it instructs the Trustee to
make pursuant to Section 6.01 is: (a) in accordance with the terms of the Plan,
and/or (b) one which the Plan Administrator is authorized by the Plan and any
other applicable instruments to direct, and/or (c) made for the exclusive
purpose of providing benefits to Participants and their beneficiaries, or
defraying reasonable expenses of Plan administration, and/or (d) not made to a
party in interest, within the meaning of Section 3(14) of ERISA or a
disqualified person, within the meaning of Section 4975 of the Internal Revenue
Code, and/or (e) not a Prohibited Transaction. If the Trustee requests,
instructions to pay benefits shall be made by the Plan Administrator on forms
prepared by the Trustee that include any or all of the above representations.
The Trustee shall be fully protected in relying on the truth of any such
representation by the Plan Administrator and shall have no duty to investigate
whether such representations are correct or to see to the application of any
amounts paid to the recipient. The Bank shall indemnify the Trustee and hold it
harmless from any liability resulting from acts or omissions taken in reliance
on such representations.

                  SECTION 6.03      FORM OF PAYMENT.

                  Payments of money by the Trustee for any benefit or expense
under the Plan may be made by, when applicable, mailing its check for the amount
thereof to the person designated by the Committee as entitled to receive such
payment to such address as may have been last furnished to the Trustee by the
Committee. If no such address has been furnished, benefits or expenses may be
mailed by the Trustee to such person in care of the Committee or the Bank. To
the extent permitted under the Plan, distributions of Shares shall be made by
causing Warwick Community Bancorp, Inc., or its transfer agent, to issue to the
distributee a stock certificate evidencing ownership of the designated number of
Shares. To the extent that any distribution of Shares to any person requires the
registration of such Shares under the securities or blue sky laws of the United
States or any state, or otherwise requires any governmental approvals, the Bank
shall undertake to complete such registration or obtain such approvals at its
sole expense.

                  SECTION 6.04      FEES AND EXPENSES OF TRUSTEE.

                  The Trustee shall receive as reasonable compensation for its
services as Trustee such amounts as may, from time to time, be agreed upon in
writing between the Bank and the
Trustee.
Such fees and expenses may be charged directly to the Trust Fund unless paid by
the Bank. The Trustee shall have a lien against the Trust Fund for the unpaid
amount of any fees and disbursements due it and, in its discretion, may withdraw
the same from the Trust Fund.

                  SECTION 6.05      TAXES.

                  All taxes that may be levied or assessed upon or in respect of
the Trust Fund shall be paid from the Trust Fund. The Trustee shall notify the
Committee of any proposed or final assessments of taxes and may assume that any
such taxes are lawfully levied or assessed unless the Committee advises it in
writing to the contrary within fifteen (15) days after receiving the above


                                      -11-

<PAGE>



notice from the Trustee. In such case, the Trustee, if requested by the
Committee in writing, shall contest the validity of such taxes in any manner
deemed appropriate by the Committee; the Bank may itself contest the validity of
any such taxes, in which case the Committee shall so notify the Trustee and the
Trustee shall have no responsibility or liability respecting such contest. If
either party to this Agreement contests any such proposed levy or assessments,
the other party shall provide such information and cooperation as the party
conducting the contest shall reasonably request.


                                   ARTICLE VII

                         VOTING RIGHTS AND TENDER OFFERS

                  SECTION 7.01      EXERCISE OF VOTING RIGHTS.

                  (a) Each person with amounts invested in the Employer Stock
Fund shall have the right to confidentially direct the exercise of voting rights
appurtenant to Shares attributable to the portion of such person's account
invested in the Employer Stock Fund; PROVIDED, however, that such person had
investments in the Employer Stock Fund as of the most recent valuation date
coincident with or immediately preceding the applicable record date for
exercising such voting rights. Such person shall, for this purpose, be deemed a
"named fiduciary" within the meaning of section 402(a)(2) of ERISA. Such
direction shall be made by completing and filing with the inspector of
elections, Trustee, or such other person who shall be independent of the issuer
of Shares as the Committee shall designate, at least 10 days prior to the date
of the meeting of holders of Shares at which such voting rights will be
exercised, a written direction in the form and manner prescribed by the
Committee. The inspector of elections, Trustee or such other person designated
by the Committee shall tabulate the directions given on a strictly confidential
basis and shall provide the Committee with only the final results of such
tabulation. The final results of the tabulation shall be followed by the
Committee or the Board in directing the Trustee as to the manner in which such
voting rights shall be exercised. The Committee shall furnish, or cause to be
furnished, to each person whose account is invested in the Employer Stock Fund
all annual reports, proxy materials and other information known by the Committee
to have been furnished by the issuer of the Shares or by any proxy solicitor to
the holders of Shares.

                  (b) To the extent that any person with amounts invested in the
Employer Stock Fund fails to give instructions with respect to the exercise of
voting rights appurtenant to Shares attributable to the portion of such person's
account invested in the Employer Stock Fund with
respect to each matter to be voted upon:

                  (i)      the Committee or the Board shall direct the Trustee
                           to: (A) cast a number of affirmative votes equal to
                           the product of (I) the number of Shares for which no
                           written instructions have been given, multiplied by
                           (II) a fraction, the numerator of which is the number
                           of Shares for which affirmative votes will be cast in
                           accordance with written instructions given as
                           provided in section 7.01(a) and the denominator of
                           which is the aggregate number of affirmative and
                           negative votes which will be cast in accordance with
                           written


                                      -12-

<PAGE>



                           instructions given as aforesaid, and (B) cast a
                           number of negative votes equal to the excess (if any)
                           of (I) the number of Shares for which no written
                           instructions have been given over (II) the number of
                           affirmative votes being cast with respect to such
                           Shares pursuant to section 7.01(b)(i)(A); or

                  (ii)     if the Committee or the Board shall determine that it
                           may not, consistent with its fiduciary duties, direct
                           the Trustee to vote the Shares for which no written
                           instructions have been given in the manner described
                           in section 7.01(b)(i), it shall direct the Trustee to
                           vote such Shares in such manner as the Compensation
                           Committee or the Board, in its discretion, may
                           determine to be in the best interests of the persons
                           to whom such Shares are attributable.

                  (c) To the extent permitted by applicable law, the Trustee
shall act in accordance with the directions that it receives from the Committee
for each matter as to which voting rights are to be exercised. If the Committee
does not provide the Trustee with directions, then to the extent permitted by
applicable law, the Trustee shall exercise the voting rights appurtenant to
Shares held in the Employer Stock Fund in its discretion. The Trustee shall have
no discretion over or responsibility or liability for its actions taken in
accordance with the Committee's directions. The Bank hereby agrees to indemnify
the Trustee and hold it harmless from and defend it against any claim asserted
against or liability imposed on the Trustee by reason of its having acted on any
direction given by the Committee in accordance with this Section 7.01 or failing
to act in the absence of such direction.

                  SECTION 7.02      RESPONSE TO TENDER OFFERS AND SIMILAR
                                    EVENTS.

                  (a) Each person with amounts invested in the Employer Stock
Fund shall have the right to confidentially direct the response to a tender
offer, or to any other offer, made to the holders of Shares generally, to
purchase, exchange, redeem or otherwise transfer Shares, with respect to the
Shares attributable to the portion of such person's account invested in the
Employer Stock Fund; PROVIDED, HOWEVER, that such person had amounts invested in
the Employer Stock Fund as of the most recent valuation date coincident with or
immediately preceding the first day for delivering Shares or otherwise
responding to such tender or other offer. Such person shall, for such purpose,
be deemed a "named fiduciary" within the meaning of section 402(a)(2) of ERISA.
Such direction shall be made by completing and filing with the Trustee, or such
other person who shall be independent of the issuer of Shares as the Committee
shall designate, at least 10 days prior to the last day for delivering Shares or
otherwise responding to such tender or other offer, a written direction in the
form and manner prescribed by the Committee. The Trustee or such other person
designated by the Committee shall tabulate the directions given on a strictly
confidential basis and shall provide the Committee with only the final results
of such tabulation. The final results of the tabulation shall be followed by the
Committee or the Board in directing the Trustee as to the number of Shares to be
delivered in response to such tender or other offer. The Committee shall furnish
or cause to be furnished, to each person whose account is invested in whole or
in part in the Employer Stock Fund, all information concerning such tender or
other offer


                                      -13-

<PAGE>



known by the Committee to have been furnished by the issuer of Shares or
furnished by or on behalf of the person making such tender or other offer.

                  (b) To the extent that any person with amounts invested in the
Employer Stock Fund fails to give instructions with respect to Shares
attributable to the portion of his account
invested in the Employer Stock Fund:

                  (i)      the Committee or the Board shall direct the Trustee
                           to: (A) tender or otherwise offer for purchase,
                           exchange or redemption a number of such Shares equal
                           to the product of (I) the number of Shares for which
                           no written instructions have been given, multiplied
                           by (II) a fraction, the numerator of which is the
                           number of Shares tendered or otherwise offered for
                           purchase, exchange or redemption in accordance with
                           written instructions given as provided in section
                           7.02(a) and the denominator of which is the aggregate
                           number of Shares for which written instructions have
                           been given as aforesaid, and (B) withhold a number of
                           Shares equal to the excess (if any) of (I) the number
                           of Shares for which no written instructions have been
                           given over (II) the number of Shares being tendered
                           or otherwise offered pursuant to section
                           7.02(b)(i)(A); or

                  (ii)     if the Committee or the Board shall determine that it
                           may not, consistent with its fiduciary duties, direct
                           the Trustee to tender or otherwise offer for
                           purchase, exchange or redemption Shares for which no
                           written instructions have been given in the manner
                           described in section 7.02(b)(i), it shall tender, or
                           otherwise offer, or withhold such Shares in such
                           manner as it, in its discretion, may determine to be
                           in the best interests of the persons to whom such
                           Shares are attributable.

                  (c) If the Committee does not provide the Trustee with
directions with respect to a tender offer or other offer described in section
7.02(a), then to the extent permitted by applicable law, the Trustee shall take
any action in response to such an offer in its discretion. The Trustee shall
have no discretion over or responsibility or liability for its actions taken in
accordance with the Committee's directions. The Bank hereby agrees to indemnify
the Trustee and hold it harmless from and defend it against any claim asserted
against or liability imposed on the Trustee by reason of its having acted on any
direction given by the Committee in accordance with this Section 7.02 or failing
to act in the absence of any such direction.

                  SECTION 7.03      DISSENT AND APPRAISAL RIGHTS.

                  (a) Each person with amounts invested in the Employer Stock
Fund shall have the right to confidentially direct the manner in which all
dissent and appraisal rights appurtenant to Shares attributable to the portion
of such person's account invested in the Employer Stock Fund will be exercised;
PROVIDED, HOWEVER, that such person had amounts invested in the Employer Stock
Fund as of the most recent valuation date coincident with or immediately
preceding the applicable date for exercising such dissent or appraisal rights.
Such individual shall, for such


                                      -14-

<PAGE>



purpose, be deemed a "named fiduciary" within the meaning of section 402(a)(2)
of ERISA. Such a direction shall be given by completing and filing with the
Trustee or such other person designated by the Committee who shall be
independent of the issuer of Shares at least 10 days prior to the latest date
for exercising such dissent and appraisal rights a written direction in the form
and manner prescribed by the Committee. The Trustee or other person designated
by the Committee shall tabulate the directions given on a strictly confidently
basis and shall provide the Committee with only the final results of such
tabulation. The final results of the tabulation shall be followed by the
Committee or the Board in directing the Trustee as to the manner in which such
dissent and appraisal rights shall be exercised. The Committee shall furnish, or
cause to be furnished, to each person whose account is invested in the Employer
Stock Fund all information known by the Committee to have been furnished by the
issuer of the Shares, or by or on behalf of any person, to the holders of Shares
in connection with such dissent and appraisal rights.

                  (b) To the extent that any person with amounts invested in the
Employer Stock Fund shall fails to give instructions with respect to dissent and
appraisal rights appurtenant to Shares attributable to his interest, the
Compensation Committee or the Board shall direct the Trustee to exercise dissent
and appraisal rights as to those Shares in such manner as the Compensation
Committee or the Board shall determine to be in the best interest of the person
to whom such Shares are attributable.

                  (c) If the Committee does not provide the Trustee with
directions with respect to dissent and appraisal rights, then to the extent
permitted by applicable law, the Trustee shall take any action in response to
such rights in its discretion. The Trustee shall have no discretion over or
responsibility or liability for its actions taken in accordance with the
Committee's directions. The Bank hereby agrees to indemnify the Trustee and hold
it harmless from and defend it against any claim asserted against or liability
imposed on the Trustee by reason of its having acted on any direction given by
the Committee in accordance with this Section 7.03 or failing to act in the
absence of any such direction.


                                  ARTICLE VIII

                            LIABILITY OF THE TRUSTEE

                  SECTION 8.01      CONTRIBUTIONS.

                  The Trustee shall not be responsible for computing or
collecting contributions due under the Plan.

                  SECTION 8.02      CLAIMS LIMITED TO THE TRUST FUND.

                  The Trustee in its individual or corporate capacity shall not
be liable for claims of any persons in any manner regarding the Plan; such
claims shall be limited to the Trust Fund. The Trustee shall not be liable to
make distributions or payments of any kind unless sufficient funds are


                                      -15-

<PAGE>



available therefor in the Trust Fund. The Trustee shall be responsible only for
such money and other property as are received by it as Trustee under this
Agreement.

                  SECTION 8.03      RETENTION OF ADVISORS.

                  The Trustee may consult legal counsel and other professional
advisors who may, but need not, be its counsel or advisors or counsel or
advisors to the Bank, the Committee, or any Participant or beneficiary, with
respect to the meaning and construction of this Agreement or its
powers, obligations, and conduct hereunder.

                  The Trustee shall be entitled to reasonable reimbursement from
the Trust Fund for such legal counsel's and other professional advisors' fees.
The Trustee shall not be deemed imprudent solely by reason of its taking or
refraining from taking any action in accordance with the opinion of
counsel.

                  SECTION 8.04      QUALIFICATION OF PLAN AND TRUST.

                  The Trustee shall be fully protected in assuming that the Plan
and Trust meet the requirements of Sections 401 and 501 of the Internal Revenue
Code and all the applicable provisions of ERISA unless it is advised to the
contrary in writing by the Committee or a governmental
agency.

                  SECTION 8.05      GENERAL DUTIES OF TRUSTEE.

                  The Trustee shall discharge its duties hereunder with the
care, skill, prudence, and diligence under the circumstances then prevailing
that a prudent man acting in a like capacity and familiar with such matters
would use in the conduct of an enterprise of a like character and with like
aims. The Trustee shall not be liable for any loss sustained by the Trust Fund
by reason of the purchase, retention, sale or exchange of any investment in good
faith and in accordance with the provisions of this Agreement and any applicable
law. The Trustee's duties and obligations shall be limited to those expressly
imposed upon it by this Agreement notwithstanding any reference herein to the
Plan.

                  SECTION 8.06      NO LIABILITY FOR ACTS OF OTHERS.

                  (a) Subject to Section 8.06(b), no "fiduciary" (as such term
is defined in Section 3(21) of ERISA) under this Agreement shall be liable for
an act or omission of another person in carrying out any fiduciary
responsibility where such fiduciary responsibility is allocated to such other
person by this Agreement or pursuant to a procedure established in this
Agreement except to the extent that:

                           (i) such fiduciary participated knowingly in, or
                  knowingly undertook to conceal, an act or omission of such
                  other person, knowing such act or omission to be
                  a breach of fiduciary responsibility;



                                      -16-

<PAGE>



                           (ii) such fiduciary, by his failure to comply with
                  Section 404(a)(1) of ERISA in the administration of his
                  specific responsibilities which give rise to his status as a
                  fiduciary, has enabled such other person to commit a breach of
                  fiduciary, responsibility; or

                           (iii) such fiduciary has knowledge of a breach of
                  fiduciary responsibility by such other person, unless he makes
                  reasonable efforts under the circumstances to
                  remedy the breach.

                  (b) Except as required by applicable law, the Trustee shall
have no liability or responsibility for an act or omission of an Investment
Manager appointed pursuant to Section 4.03 in carrying out its fiduciary
responsibilities with respect to the Plan and no obligation to invest or
otherwise manage any asset of the Plan which is subject to the management of
such Investment Manager unless the Trustee: (i) by its failure to comply with
Section 404(a)(1) of ERISA in the administration of its specific
responsibilities which give rise to its status as a fiduciary, has enabled such
Investment Manager to commit a breach of fiduciary responsibility; or (ii)
participated knowingly in, or knowingly undertook to conceal, an act or omission
of such Investment Manager, knowing such act or omission to be a breach of
fiduciary responsibility.

                  SECTION 8.07      INDEMNIFICATION.

                  (a) Subject to the relevant provisions of ERISA, the Bank
hereby agrees to discharge, indemnify and hold Marine Midland Bank, ("Marine"),
and its directors, officers and employees (hereinafter collectively referred to
as the "Indemnitees") harmless from and against:

                           (i) any and all reasonable costs and expenses
                  incurred by Marine in the enforcement of this Section 8.07
                  including, but not limited to, reasonable attorneys'
                  fees and expenses and court costs; and

                           (ii) any and all losses, claims, damages, expenses,
                  or liabilities (including, but not limited to, court costs,
                  judgments, fines, excise taxes, time charged for personnel
                  time of Marine related to litigation and the aggregate amount
                  paid in reasonable settlement of any actions, suits,
                  proceedings, or claims) (hereinafter referred to as "Losses")
                  incurred by any one or more of the Indemnitees in connection
                  with actions, proceedings, or suits of any kind or nature
                  whatsoever, whether civil under any statue or common law or
                  otherwise, criminal, administrative or investigative arising
                  from or in any way related to actions taken, or omitted to be
                  taken, by one or more of the Indemnitees in connection with
                  the engagement of Marine as Trustee of the Trust, including,
                  but not limited to, any actions taken or omitted to be taken
                  pursuant to directions or requests of the Bank, the Plan
                  Administrator, the Committee, the Plan's Investment Manager,
                  or their duly authorized agent or agents (such indemnification
                  shall also include reasonable fees and expenses of Marine's
                  legal counsel and financial advisors ("Litigation Expenses")
                  which shall be paid within thirty (30) days of the date
                  billed); provided, however, that upon a written determination
                  of any court of competent jurisdiction ("Court") ,


                                      -17-

<PAGE>



                  in an action in which the Bank and Marine are parties,
                  concluding that a Loss resulted from the gross negligence or
                  willful misconduct of one or more Indemnitees, the Bank shall
                  not be obligated to pay Marine's Litigation Expenses within
                  thirty (30) days of the date billed. Notwithstanding the
                  foregoing, the provisions of this Section 8.07 (other than
                  this sentence and the last sentence of this Section 8.07(a))
                  shall not apply to the extent that any Loss is found, in a
                  final judgement ("Judgment") by a Court either (i) from which
                  no appeal can be taken or (ii) from which no appeal is taken
                  in a timely manner, to have resulted from the gross negligence
                  or willful misconduct of one or more Indemnitees, in which
                  case Marine shall reimburse the Bank for any Litigation
                  Expenses and/or Losses paid by the Bank hereunder. However, if
                  the Judgment does not indicate that the Loss resulted from the
                  gross negligence or willful misconduct of one or more
                  Indemnitees, the Bank shall pay all of Marine's outstanding
                  Litigation Expenses and/or Losses within thirty (30) days. Any
                  reimbursement or payment, as the case may be, required to be
                  made hereunder after a Judgment shall include interest
                  calculated in accordance with Marine's prime rate of interest
                  as of the date the Bank or Marine, as the case may be, paid
                  the litigation Expense or Loss.


                  (b) If notice of any action, claim, investigation or
proceeding (hereinafter collectively referred to as "Proceeding") is received by
one or more Indemnitees in respect to which indemnity may be sought against the
Bank hereunder, such Indemnitee or Indemnitees shall promptly notify the Bank,
in writing in no event later than thirty (30) days of the commencement thereof,
but the omission to so notify the Bank shall not relieve the Bank from any
liability to any one or more Indemnitees hereunder, except to the extent that
such failure shall have actually prejudiced the defense of such action. The
Bank, upon written notice to the Indemnitees within fifteen (15) days after
receiving notice of commencement of the Proceeding, will be entitled to
participate in any such Proceeding and to the extent that it may wish, assume
the defense of the Proceeding with counsel satisfactory to the Indemnitees.
After notice from the Bank to the Indemnitees of its election to assume the
defense of any Proceeding, the Bank will pay all costs of defense of such
Proceeding of every kind whatsoever. The Bank shall pay the Indemnitees'
reasonable costs of investigation, of testifying in any hearing, of responding
to discovery proceedings, or of consulting with the Bank or the Bank's
attorneys. Indemnitees shall have the right to employ their own counsel in any
Proceeding and the fees and expenses of such counsel shall be paid by the Bank,
as they are incurred, if:

                           (i) Indemnitees have been advised by such counsel
                  that there may be one or more legal defenses available to them
                  which are different from or additional to defenses that are
                  available to the Bank (in which case the Bank shall not have
                  the right to assume the defense of the Proceeding on behalf of
                  Indemnitees);

                           (ii) the Bank has not assumed the defense of the
                  Proceeding and employed counsel satisfactory to Indemnitees
                  within fifteen (15) days after notice of commencement of the
                  Proceeding;



                                      -18-

<PAGE>



                           (iii) the employment of such counsel has been
                  authorized by the Bank in
                  connection with the defense of the Proceeding; or

                           (iv) Indemnitees have been reasonably informed by
                  such counsel that a conflict exists with counsel selected by
                  the Bank.

                  (c) Neither termination, nor completion of the engagement of
Marine or Indemnitees shall affect the provisions of this Section 8.07, which
shall nevertheless remain operative and in full force and effect. The Bank
hereby agrees that, in the event a Court holds that any payment or award of
indemnification under the provisions of this Section 8.07 shall be unavailable
to any one or more of the Indemnitees from the Bank for any reason, the Bank
shall contribute to the aggregate Loss such amount as shall reflect the relative
fault of the Bank.

                  (d) The provisions of this Section 8.07 shall be binding upon
and inure to the benefit of the assigns, successors and legal representatives of
the parties hereto.

                  (e) The parties agree that this Section 8.07 shall apply from
the date Marine becomes Trustee of the Trust and shall remain in full force and
effect with regard to any matters covered hereunder, irrespective of whether
Marine is then serving as Trustee of the Trust.

                  (f) The parties agree that, in the event a Court holds that
any part of this Section 8.07 is invalid or unenforceable, the remaining
provisions of this Section 8.07 shall remain in full force and effect as if the
provisions held invalid or unenforceable were never a part thereof.

                  SECTION 8.08      COMMUNICATIONS.

                  Communications to the Trustee shall be sent to the Trustee's
principal office as stated in the preamble to this Agreement, to the attention
of its Trust Department, or to such other address as the Trustee shall indicate
in a written instrument delivered to the Committee.

                  Communication to the Committee, the Plan Administrator, the
Bank or the Board shall be sent to the Bank's principal office as stated in the
preamble to this Agreement, or to such other address as the Committee shall
specify in a written instrument delivered to the Trustee. Communications shall
be deemed to have been given at the time given personally, the day sent by
facsimile transmission or by overnight courier or five (5) days after mailing
postage prepaid or by registered or certified mail.

                  SECTION 8.09      PROOF OF MATTERS.

                  Whenever the Trustee shall deem it desirable for a matter to
be proved or established before taking, permitting, or omitting any act, the
matter (unless other evidence in respect thereof is specifically prescribed in
this Agreement) may be deemed to be conclusively established by a certification
signed by any two members of the Committee (or by the member of the Committee if
the Committee has only one member) and delivered to the Trustee, and the Trustee
shall be fully protected in relying on such an instrument.


                                      -19-

<PAGE>



                  SECTION 8.10      PARTY IN INTEREST INFORMATION.

                  The Bank shall provide the Trustee with such information
concerning the relationship between any person or organization and the Plan as
the Trustee reasonably requests in order to determine whether such person or
organization is a party in interest with respect to the Plan within the meaning
of Section 3(14) of ERISA or a disqualified person with respect to the Plan
within the meaning of section 4975 of the Internal Revenue Code.

                  SECTION 8.11      DISPUTES.

                  If a dispute arises as to the payment of any funds or delivery
of any assets by the Trustee, the Trustee may withhold such payment or delivery
until the dispute is determined by a court of competent jurisdiction or finally
settled in writing by the parties concerned.


                                   ARTICLE IX

                            ACCOUNTING OF THE TRUSTEE

                  SECTION 9.01      KEEPING OF ACCOUNTS.

                  The Trustee shall keep accurate and detailed accounts of all
investments, reinvestments, receipts and disbursements and all other records of
all its transactions under this Agreement. These accounts, books and records
shall be open to inspection during regular business hours of the Trustee by the
Committee or the Plan Administrator or any person or persons designated by the
Committee or the Plan Administrator in a written instrument filed with the
Trustee. The Trustee need not keep records of the interests in the Trust Fund of
individual Participants and beneficiaries unless it agrees with the Committee or
the Bank to keep such records under a separate agreement adopted under Section
3.05 of this Agreement.

                  SECTION 9.02      RENDERING OF ACCOUNTS.

                  Within ninety (90) days after the close of each fiscal year of
the Plan, the Trustee's removal or resignation as Trustee hereunder, or the
termination of the Plan or this Agreement, the Trustee shall file with the
Committee an account setting forth all its transactions (including all receipts
and disbursements) under the Agreement during such year, or during the period
from the close of the last preceding fiscal year of the Plan to the effective
date of its removal or resignation or the termination of the Plan or this
Agreement, and showing property (including its cost and fair market value) held
by it hereunder at the end of such accounting period. The Trustee shall certify
in writing that the information in the accounting is accurate. The Committee and
the Trustee may agree in writing that similar accounts will be prepared by the
Trustee and filed with the Committee at more frequent intervals. No person or
persons (including, without limitation, the Bank, the Board, and the Committee)
shall be entitled to any further or different accounting by the Trustee, except
as may be required by law.



                                      -20-

<PAGE>



                  SECTION 9.03      DISCHARGE OF TRUSTEE.

                  Ninety (90) days after the filing of any account with the
Committee under Section 9.02, the Trustee shall be forever released and
discharged from any liability or accountability to anyone with respect to the
transactions shown or reflected on the account, except with respect to any acts
or transactions as to which the Committee, within such ninety-day period, files
written objections with the Trustee. The written approval of the Committee of
any account filed by the Trustee, or the Committee's failure to file written
objections within ninety (90) days, shall be a settlement of such account as
against all persons, and shall forever release and discharge the Trustee from
any liability or accountability to anyone with respect to the transactions shown
or reflected on such account.

                  If a statement of objections is filed by the Committee and the
Committee is satisfied that its objections should be withdrawn or if the account
is adjusted to its satisfaction, the Committee shall indicate its approval of
the account in a written statement filed with the Trustee and the Trustee shall
be forever released and discharged from all liability and accountability to
anyone in accordance with the immediately preceding sentence. If an objection is
not settled by the Committee and the Trustee, the Trustee, the Bank or the
Committee may start a proceeding for a judicial settlement of the account in any
court of competent jurisdiction; the only parties that need be joined in such a
proceeding are the Trustee, the Committee, the Bank, and any other parties whose
participation is required by law.

                  SECTION 9.04      RIGHT TO JUDICIAL SETTLEMENT.

                  Nothing in this Agreement shall prevent the Trustee, the Bank
or the Committee from having the Trustee's account settled by a Court at any
time. The only parties that need be joined in any such proceeding are the Bank,
the Committee, the Trustee, and any other parties whose
participation is required by law.


                                    ARTICLE X

                     REMOVAL AND RESIGNATION OF THE TRUSTEE

                  SECTION 10.01     REMOVAL OR RESIGNATION.

                  The Trustee may resign as Trustee under this Agreement at any
time by a written instrument delivered to the Committee giving notice of such
resignation, which shall be effective sixty (60) days after receipt or at such
other time as is agreed by the Committee and the Trustee. The Trustee may be
removed at any time by the Board by a written resolution, certified by the
Secretary or Assistant Secretary of the Bank and delivered to the Trustee, which
shall be effective sixty (60) days after receipt or at such other time as is
agreed between the Committee and the Trustee.





                                      -21-

<PAGE>



                  SECTION 10.02     SUCCESSOR TRUSTEE.

                  If a vacancy in the office of trustee of the Trust occurs, the
Board shall appoint a successor trustee and shall deliver to the Trustee copies
of (a) a written instrument executed by the Bank appointing such successor, and
(b) a written instrument executed by the successor in which it accepts such
appointment. Such instruments shall indicate their effective dates. The
instrument of appointment shall be accompanied by certified copies of
resolutions of the Board authorizing its adoption. Any such successor trustee or
trustees shall have all the powers and duties of the original trustee.

                  SECTION 10.03     DELIVERY OF TRUST FUND.

                  If the Trustee resigns or is removed, it shall deliver any
assets of the Trust Fund in its possession to a successor trustee as soon as it
reasonably practicable after the settlement of its account or at such earlier
time as shall be agreed on by the Bank, the Trustee, and the successor trustee.
The Trustee may, however, reserve such amount of cash or property as it deems
advisable for payment of its fees and expenses in connection with its
administration of the Trust or the settlement of its account or for payment of
all taxes that may be assessed on or in respect of the Trust Fund or the income
thereof for the period before its removal or resignation. The Trustee shall pay
over to the successor trustee any balance of such reserve remaining after the
payment of such fees, expenses, and taxes. The delivery of assets of the Trust
Fund to the successor trustee shall not be deemed a waiver by the Trustee of any
lien or claim it may have on the Trust Fund for its fees or expenses.


                                   ARTICLE XI

                            AMENDMENT AND TERMINATION

                  SECTION 11.01     AMENDMENT.

                  This Agreement may be amended at any time and from time to
time by a written instrument signed by the Trustee and the Bank. The instrument
of amendment must be approved by the Board and the Committee shall deliver to
the Trustee a certified copy of resolutions adopted by the Board authorizing its
adoption. The Bank shall certify to the Trustee that the amendment does not
permit any part of the Trust Fund to be used for or diverted to purposes other
than the exclusive benefit of Participants and their beneficiaries or the
payment of reasonable expenses of administering the Plan and Trust, subject to
Section 2.02. The instrument of amendment shall specify its effective date and
amendments may be made effective retroactively.

                  SECTION 11.02     TERMINATION.

                  If the Committee certifies to the Trustee that the Plan is or
has been terminated, the Trustee shall hold and/or dispose of the Trust Fund in
accordance with the Committee's written instructions, subject to the Trustee's
right to receive a written or judicial settlement of its account and


                                      -22-

<PAGE>



such evidence of governmental approval as it shall, in its sole discretion,
require. The Committee shall certify in writing to the Trustee that the
disposition directed: (a) does not result in any part of the Trust Fund being
used for or diverted to purposes other than the exclusive benefit of
Participants and their beneficiaries and the payment of reasonable expenses of
administering the Plan and Trust, subject to Section 2.02, (b) is in accordance
with ERISA and any other applicable laws, and (c) does not result in a
Prohibited Transaction. The Trustee may, however, reserve such amount of cash or
property as it deems advisable for payment of its fees and expenses in
connection with its administration of the Trust or the settlement of its account
or for payment of taxes that may be assessed on or in respect of the Trust or
the income thereof.


                                   ARTICLE XII

                                  MISCELLANEOUS

                  SECTION 12.01     MERGER OF TRUSTEE.

                  Any corporation into which the Trustee is merged or with which
it is consolidated, or any corporation resulting from a merger, reorganization,
or consolidation, to which the Trustee is a party, or any corporation to which
all or substantially all the trust business of the Trustee is transferred shall
become the successor trustee under this Agreement without the execution or
filing of any further instrument or the performance of any further act.

                  SECTION 12.02     AFFILIATED COMPANIES.

                  (a) Any other company which adopts the Plan in accordance with
its terms may, with the written consent of the Trustee and Bank, become a party
to this Agreement as an "Affiliated Company" by delivering a certified copy of a
resolution of its board of directors to the effect that it agrees to adopt the
Plan, to become a party to this Agreement and to be bound by all the terms and
conditions of the Plan and this Agreement, as then in effect and as it may
thereafter be amended. The Bank shall have the sole authority to enforce this
Agreement on behalf of any such Affiliated Bank and the Trustee need not deal
with any Affiliated Company except by dealing with the Bank or the Committee as
its agent. The Trustee shall invest and administer the Trust Fund as a single
fund for investment and accounting purposes without identification or allocation
among the Bank and any Affiliated Companies or to any employee or group of
employees or their beneficiaries, unless the Trustee, the Bank, and the
Affiliated Companies concerned agree in writing to segregate funds.

                  (b) Any Affiliated Company may cease to be a party to this
Agreement by delivering to the Trustee a certified copy of a resolution of its
board of directors terminating its participation in the Plan or this Agreement.
In such case, or in the event of the merger, consolidation, sale of property or
stock, separation, reorganization or liquidation of any Affiliated Company, the
Trustee, until directed otherwise by the Committee, shall continue to hold, in
accordance with the provisions of this Agreement, that portion of the Trust Fund
which it is advised by the Committee is attributable to the participation in the
Plan of the employees and their beneficiaries affected by such termination or by
such transaction.


                                      -23-

<PAGE>



                  SECTION 12.03     ALIENATION OF TRUST FUND.

                  No right or claim in or to the Trust Fund or any assets
thereof shall be assignable or subject to garnishment, attachment, execution, or
levy of any kind except as otherwise provided under Section 414(p) of the
Internal Revenue Code and Section 206(d)(3) of ERISA; any attempt to transfer,
assign, or pledge the same shall be void and shall not be recognized by the
Trustee except to such extent as may be legally required.

                  SECTION 12.04     APPLICABLE LAW.

                  This Agreement shall be administered, construed, and enforced
in accordance with applicable federal law (including, but not limited to, the
fiduciary requirements of Part 4 of Title I of ERISA) and, to the extent not
preempted by federal law, the laws of the State of New York.

                  SECTION 12.05     HEADINGS NOT PART OF THE AGREEMENT.

                  Headings of Articles and Sections are inserted for convenience
of reference. They are not part of this Agreement and shall not be considered in
construing it.

                  SECTION 12.06     MULTIPLE COPIES.

                  This Agreement may be executed in any number of counterparts,
each of which shall be considered an original even though no others are
produced.


                                      -24-

<PAGE>



                  IN WITNESS WHEREOF, the Bank and the Trustee have caused this
Agreement to be executed by their duly authorized officers and their respective
corporate seals to be hereunto affixed
as of the day and year first above written.


                                      THE WARWICK SAVINGS BANK



                                      By: /s/ Ronald J. Gentile
                                          ----------------------------------
                                              Ronald J. Gentile

                                      Title:   Executive Vice President
                                                 and Chief Operating Officer

                                      Date:   November 21, 1997
                                              ------------------------------
Attest:


By: Nancy L. Sobotor-Littell
    ------------------------
    Secretary

[seal]
                                      MARINE MIDLAND BANK



                                      By: /s/ Richard A. Glover
                                          ----------------------------------
                                              Richard A. Glover

                                      Title: Vice President

                                      Date:   November 20, 1997
                                              ------------------------------

Attest:


By: James Chin
    ------------------------
    Vice President

[seal]




                                      -25-

<PAGE>


STATE OF NEW YORK      )
                       : ss.:
COUNTY OF ORANGE       )


                  On this 21st day of November, 1997, before me personally came
RONALD J. GENITLE to me known, who, being by me duly sworn, did depose and say
that he resides at 30 Newport Bridge Road, Warwick, New York 10990; that he is
the Executive Vice President and Chief Operating Officer of THE WARWICK SAVINGS
BANK, the savings bank described in and which executed the foregoing instrument;
that he knows the seal of said savings bank; that the seal affixed to said
instrument is such savings bank's seal; that it was so affixed by order of the
Board of Directors of said savings bank; and that he signed his name thereto by
like order.



                                                     /s/ Mary K. Serriger
                                                     -------------------------
                                                         Notary Public



STATE OF NEW YORK      )
                       : ss.:
COUNTY OF NEW YORK     )


                  On this 20th day of November, 1997, before me personally came
RICHARD A. GLOVER, to me known, who, being by me duly sworn, did depose and say
that he resides at 5 Windward Court, Dix Hills, New York, that he is Vice
President and Trust Officer of MARINE MIDLAND BANK, the banking corporation
described in and which executed the foregoing instru ment; that he knows the
seal of said banking corporation; that the seal affixed to said instrument is
such seal; that it was so affixed by order of the Board of Directors of said
banking corporation; and that he signed his name thereto by like order.



                                                     /s/ Doris Colon
                                                     -------------------------
                                                         Notary Public



                                      -26-