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| ARTICLE      I    | Introduction                       | 1      |
|-------------------|------------------------------------|--------|
|              |                               |   |
| ARTICLE      II   | Definitions                        | 1      |
|              |                               |   |
| ARTICLE      III  | Eligibility      and Participation | 3      |
|              |                               |   |
| ARTICLE      IV   | Benefits                           | 3      |
|              |                               |   |
| ARTICLE      V    | Accounts                           | 4      |
|              |                               |   |
| ARTICLE      VI   | Supplemental      Benefit Payments | 5      |
|              |                               |   |
| ARTICLE      VII  | Claims      Procedures             | 5      |
|              |                               |   |
| ARTICLE      VIII | Amendment      and Termination     | 6      |
|              |                               |   |
| ARTICLE      IX   | General      Provisions            | 7      |

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| Section      1.01 | Purpose, Design and      Intent. |
|-------------------|----------------------------------|

| (a) | The      purpose of the Polonia Bank Supplemental Executive Retirement Plan (the      “Plan”) is to assist Polonia Bank (the “Bank”) and its affiliates in      retaining the services of key employees until their retirement, to induce      such employees to use their best efforts to enhance the business of the      Bank and its affiliates, and to provide certain supplemental retirement      benefits to such employees. |
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| (b) | The      Plan, in relevant part, is intended to constitute an unfunded “excess      benefit plan” as defined in Section 3(36) of the Employee Retirement      Income Security Act of 1974, as amended.  In this respect, the      Plan is specifically designed to provide certain key employees with      retirement benefits that would have been provided under various      tax-qualified retirement plans sponsored by the Bank but for the      applicable limitations placed on benefits and contributions under such      plans by various provisions of the Internal Revenue Code of 1986, as      amended. |
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| (c) | The      Bank is amending and restating the Plan in its entirety effective as of      January 1, 2005 to comply with Section 409A of the  Code. |
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|   |  (i) | the      maximum limitations on annual additions to a tax-qualified defined      contribution plan under Section 415(c) of the  Code; |
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|   |  (ii) | the      maximum limitation on the annual amount of compensation that may, under      Section 401(a)(17) of the Code, be taken into account in determining      contributions to and benefits under tax-qualified plans;    and |
|--------|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (iii) | the      maximum limitations, under Sections 401(k), 401(m), or 402(g) of the Code,      on pre-tax contributions that may be made to a qualified defined      contribution plan. |
|--------|-------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Section      3.01 | Eligibility and      Participation. |
|-------------------|-------------------------------------|

| (a) | Each      Eligible Employee may participate in the Plan.  An Eligible      Employee shall become a Participant in the Plan upon designation as such      by the Board of Directors.  An Eligible Employee whom the Board      of Directors designates as a Participant in the Plan shall commence      participation as of the date established by the Board of      Directors.  The Board of Directors shall establish an Eligible      Employee’s date of participation at the same time it designates the      Eligible Employee as a Participant in thePlan. |
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| (b) | The      Board of Directors may, at any time, designate an Eligible Employee as a      Participant for any or all supplemental benefits provided for under      Article IV of the Plan. |
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| Section      4.01 | Supplemental ESOP      Benefit. |
|-------------------|---------------------------------|

| (a) | Equals      the annual contributions made by the Employer and/or the number of shares      of Common Stock released for allocation in connection with the repayment      of an ESOP Acquisition Loan that would otherwise be allocated to the      accounts of the Participant under the ESOP for the applicable plan year,      if the provisions of the ESOP were administered without regard to any of      the Applicable Limitations; and |
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| (b) | Equals      the annual contributions made by the Employer and/or the number of shares      of common stock released for allocation in connection with the repayment      of an ESOP Acquisition Loan that are actually allocated to the accounts of      the Participant under the provisions of the ESOP for that particular plan      year, after giving effect to any reduction of such allocation required by      any of the Applicable Limitations. |
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| Section      4.02 | Supplemental Stock      Ownership Benefit. |
|-------------------|--------------------------------------------|

| (a) | Upon      a Change in Control, the Employer shall credit to the Participant’s      Supplemental Stock Ownership Account a Supplemental Stock Ownership      Benefit equal to (i) less (ii), the result of which is multiplied by      (iii), where: |
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|   | (i) | Equals      the total number of shares of Common Stock acquired with the proceeds of      all ESOP Acquisition Loans (together with any dividends, cash proceeds, or      other medium related to such ESOP Acquisition Loans) that would have been      allocated or credited for the benefit of the Participant under the ESOP      and/or this Plan, as the case may be, had the Participant continued in the      employ of the Employer through the first ESOP Valuation Date following the      last scheduled payment of principal and interest on all ESOP Acquisition      Loans outstanding at the time of the Change in Control;  and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Equals      the total number of shares of Common Stock acquired with the proceeds of      all ESOP Acquisition Loans (together with any dividends, cash proceeds, or      other medium related to such ESOP Acquisition Loans) and allocated for the      benefit of the Participant under the ESOP and/or this Plan, as the case      may be, as of the first ESOP Valuation Date following the Change in      Control; and |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (iii) | Equals      the fair market value of the Common Stock immediately preceding the Change      in Control. |
|--------|-------------|---------------------------------------------------------------------------------------------------------|

| (b) | For      purposes of clause (i) of subsection (a) of this Section 4.02, the total      number of shares of Common Stock shall be determined by multiplying the      sum of (i) and (ii) by (iii),where: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Equals      the average of the total shares of Common Stock acquired with the proceeds      of an ESOP Acquisition Loan and allocated for the benefit of the      Participant under the ESOP as of the three most recent ESOP Valuation      Dates preceding the Change in Control (or lesser number if the Participant      has not participated in the ESOP for three full  years); |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Equals      the average number of shares of Common Stock credited to the Participant’s      Supplemental ESOP Account for the three most recent plan years of the ESOP      (such that the three most recent plan years coincide with the three most      recent ESOP Valuation Dates referred to in (i) above);  and |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Equals      the original number of scheduled annual payments on the ESOP Acquisition      Loan. |
|--------|-------|-------------------------------------------------------------------------------------------------|

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| Section      5.02 | Supplemental Stock      Ownership Account. |
|-------------------|--------------------------------------------|

| (a) | A      Participant’s Supplemental ESOP Benefit shall be paid to the Participant      or, in the event of the Participant’s death, to his beneficiary (as      designated on a form acceptable to the Employer), in a single lump sum      payment as soon as administratively practicable (but no later than 60      days) following the Participant’s Separation from Service.  The      form of the payment shall match the form (i.e., cash, stock or other      medium) in which the Employer credited the benefit pursuant to Article V      of the Plan. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | A      Participant shall have a non-forfeitable right to the Supplemental ESOP      Benefit credited to him under this Plan in the same percentage as he has      benefits allocated to him under the ESOP at the time the benefits become      distributable to him under theESOP. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | A      Participant’s Supplemental Stock Ownership Benefit shall be paid to the      Participant or, in the event of the Participant’s death, to his      beneficiary (as designated on a form acceptable to the Employer), in a      single lump sum payment as soon as administratively practicable (but no      later than 60 days) following the Participant’s Separation from      Service.  The form of the payment shall match the form (i.e.,      cash, stock or other medium) in which the Employer credited the benefit      pursuant to Article V of the Plan. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | A      Participant shall always have a fully non-forfeitable right to the      Supplemental Stock Ownership Benefit credited to him under this      Plan. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| Section      7.01 | Claims      Reviewer. |
|-------------------|-----------------------|

| Section      7.02 | Claims      Procedure. |
|-------------------|------------------------|

| (a) | An      initial claim for benefits under the Plan must be made by the Participant      or his beneficiary or beneficiaries in accordance with the terms of this      Section 7.02. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (b) | Not      later than ninety (90) days after receipt of such a claim, the Claims      Reviewer will render a written decision on the claim to the claimant,      unless special circumstances require the extension of such 90-day      period.  If such extension is necessary, the Claims Reviewer      shall provide the Participant or the Participant’s beneficiary or      beneficiaries with written notification of such extension before the      expiration of the initial 90-day period.  Such notice shall      specify the reason or reasons for the extension and the date by which a      final decision can be expected.  In no event shall such      extension exceed a period of ninety (90) days from the end of the initial      90-day period. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | In      the event the Claims Reviewer denies the claim of a Participant or any      beneficiary in whole or in part, the Claims Reviewer’s written      notification shall specify, in a manner calculated to be understood by the      claimant, the reason for the denial; a reference to the Plan or other      document or form that is the basis for the denial; a description of any      additional material or information necessary for the claimant to perfect      the claim; an explanation as to why such information or material is      necessary; and an explanation of the applicable claims      procedure. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | Should      the claim be denied in whole or in part and should the claimant be      dissatisfied with the Claims Reviewer’s disposition of the claimant’s      claim, the claimant may have a full and fair review of the claim by the      Committee upon written request submitted by the claimant or the claimant’s      duly authorized representative and received by the Committee within sixty      (60) days after the claimant receives written notification that the      claimant’s claim has been denied.  In connection with such      review, the claimant or the claimant’s duly authorized representative      shall be entitled to review pertinent documents and submit the claimant’s      views as to the issues, in writing.  The Committee shall act to      deny or accept the claim within sixty (60) days after receipt of the      claimant’s written request for review unless special circumstances require      the extension of such 60-day period.  If such extension is      necessary, the Committee shall provide the claimant with written      notification of such extension before the expiration of such initial      60-day period.  In all events, the Committee shall act to deny      or accept the claim within 120 days of the receipt of the claimant’s      written request for review.  The action of the Committee shall      be in the form of a written notice to the claimant and its contents shall      include all of the requirements for action on the original      claim. |
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| (e) | In      no event may a claimant commence legal action for benefits the claimant      believes are due the claimant until the claimant has exhausted all of the      remedies and procedures afforded the claimant by this Article      VII. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Section      8.01 | Amendment of the      Plan. |
|-------------------|-----------------------------|

| Section      8.02 | Termination in the      Discretion of the Bank. |
|-------------------|-------------------------------------------------|

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| (a) | All      arrangements sponsored by the Bank that would be aggregated with the Plan      under Section 1.409A-1(c) of the Treasury Regulations are      terminated. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | No      payments other than payments that would be payable under the terms of the      Plan if the termination had not occurred are made within 12 months of the      termination date. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | All      benefits under the Plan are paid within 24 months of the termination      date. |
|-----|------------------------------------------------------------------------------------------|

| (d) | The      Bank does not adopt a new arrangement that would be aggregated with the      Plan under Section 1.409A-1(c) of the Treasury Regulations providing for      the deferral of compensation at any time within 3 years following the date      of termination of the Plan. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | The      termination does not occur proximate to a downturn in the financial health      of the Bank. |
|-----|-------------------------------------------------------------------------------------------------------|

| Section      9.01 | Unfunded, Unsecured      Promise to Make Payments in theFuture. |
|-------------------|-----------------------------------------------------------------|

| Section      9.02 | Committee as Plan      Administrator. |
|-------------------|---------------------------------------|

| (a) | The      Plan shall be administered by the Committee designated by the Board of      Directors of the Bank. |
|-----|-------------------------------------------------------------------------------------------------------------|

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| (b) | The      Committee shall have the authority, duty and power to interpret and      construe the provisions of the Plan as it deems      appropriate.  The Committee shall have the duty and      responsibility of maintaining records, making the requisite calculations      and disbursing the payments hereunder.  In addition, the      Committee shall have the authority and power to delegate any of its      administrative duties to employees of the Bank or an Affiliate, as they      may deem appropriate.  The Committee shall be entitled to rely      on all tables, valuations, certificates, opinions, data and reports      furnished by any actuary, accountant, controller, counsel or other person      employed or retained by the Bank with respect to the Plan. The      interpretations, determinations, regulations and calculations of the      Committee shall be final and binding on all persons and parties      concerned. |
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| Section      9.03 | Expenses. |
|-------------------|-----------|

| Section      9.05 | Rights of Participants      and Beneficiaries. |
|-------------------|------------------------------------------------|

| (a) | The      sole rights of a Participant or beneficiary under this Plan shall be to      have this Plan administered according to its provisions and to receive      whatever benefits he or she may be entitled to  hereunder. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Nothing      in the Plan shall be interpreted as a guaranty that any funds in any trust      which may be established in connection with the Plan or assets of the Bank      or an Affiliate will be sufficient to pay any benefit      hereunder. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | The      adoption and maintenance of this Plan shall not be construed as creating      any contract of employment or service between the Bank or an Affiliate and      any Participant or other individual.  The Plan shall not affect      the right of the Bank or an Affiliate to deal with any Participants in      employment or service respects, including their hiring, discharge,      compensation, and other conditions of employment or    service. |
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| Section      9.06 | Incompetent      Individuals. |
|-------------------|-------------------------------|

| Section      9.07 | Sale, Merger or      Consolidation of the Bank. |
|-------------------|-------------------------------------------------|

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| Section      9.09 | Liability of the Bank      and its Affiliates. |
|-------------------|------------------------------------------------|

| Section      9.10 | Governing      Law. |
|-------------------|---------------------|

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| Attest:               |   | POLONIA      BANK |
|-----------------------|--------|-------------------|
|                  |   |              |   |   |
| /s/ Paul D. Rutkowski |   |              | By: | /s/ Anthony J.  Szuszczewicz |
|                  |   |              |   | Anthony      J. Szuszczewicz |
|                  |   |              |   | President      and Chief ExecutiveOfficer |

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