|   | (a) | The      term of this Agreement shall include: (i) the initial term, consisting of      the period commencing on the Effective Date and ending on January 11,      2010, plus (ii) any and all extensions of the initial term made pursuant      to Section 3 of this Agreement. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Commencing      on the first anniversary of the Effective Date and continuing on each      anniversary of the Effective Date thereafter, the disinterested members of      the Board may extend the Agreement term for an additional year, so that      the remaining term of the Agreement again becomes thirty-six (36) months,      unless Executive elects not to extend the term of this Agreement by giving      written notice in accordance with Section 19 of this      Agreement.  The Board will review the Agreement and Executive’s      performance annually for purposes of determining whether to extend the      Agreement term and will include the rationale and results of its review in      the minutes of the meeting.  The Board will notify Executive as      soon as possible after its annual review whether the Board has determined      to extend the Agreement. |
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|   | 4. | Base      Compensation. |
|--------|----|-------------------------|

|   | (a) | The      Bank agrees to pay Executive during the term of this Agreement a base      salary at the rate of $164,500 per year, payable in accordance with      customary payroll practices. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Each      year, the Board will review the level of Executive’s base salary, based      upon factors they deem relevant, in order to determine whether to maintain      or increase his base salary. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Executive      may take vacations and other leave in accordance with the Bank’s policy      for senior executives, or otherwise as approved by the    Board. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | In      addition to paid vacations and other leave, the Board may grant Executive      a leave or leaves of absence, with or without pay, at such time or times      and upon such terms and conditions as the Board, in its discretion, may      determine. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | During      the term of this Agreement, Executive will devote all his business time,      attention, skill, and efforts to the faithful performance of his duties      under this Agreement; provided, however, that from time to time, Executive      may serve on the boards of directors of, and hold any other offices or      positions in, companies or organizations that will not present any      conflict of interest with the Bank or any of its subsidiaries or      affiliates, unfavorably affect the performance of Executive’s duties      pursuant to this Agreement, or violate any applicable statute or      regulation.  Executive will not engage in any business or      activity contrary to the business affairs or interests of the Bank or any      of its subsidiaries oraffiliates. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (b) | Nothing      contained in this Agreement will prevent or limit Executive’s right to      invest in the capital stock or other securities or interests of any      business dissimilar from that of the Bank, or, solely as a passive,      minority investor, in any business. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Executive      agrees to maintain the confidentiality of any and all information      concerning the operation or financial status of the Bank; the names or      addresses of any of its borrowers, depositors and other customers; any      information concerning or obtained from such customers; and any other      information concerning the Bank or its subsidiaries or affiliates to which      he may be exposed during the course of his      employment.  Executive further agrees that, unless required by      law or specifically permitted by the Board in writing, he will not      disclose to any person or entity, either during or subsequent to his      employment, any of the above-mentioned information which is not generally      known to the public, nor will he use the information in any way other than      for the benefit of the Bank. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Death.  Executive’s      employment under this Agreement will terminate upon his death during the      term of this Agreement, in which event Executive’s estate will receive the      compensation due to Executive through the last day of the calendar month      in which his death occurred. |
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|   | (b) | Retirement.  This      Agreement will terminate upon Executive’s retirement under the retirement      benefit plan or plans in which he participates pursuant to Section 6 of      this Agreement or otherwise. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | The      Board or Executive may terminate Executive’s employment after having      determined Executive has a Disability.  For purposes of this      Agreement, “Disability” means a physical or mental infirmity that impairs      Executive’s ability to substantially perform his duties under this      Agreement and results in Executive becoming eligible for long-term      disability benefits under any long-term disability plans of the Bank (or,      if no such plans exists, that impairs Executive’s ability to substantially      perform his duties under this Agreement for a period of one hundred eighty      (180) consecutive days).  The Board will determine whether or      not Executive is and continues to be permanently disabled for purposes of      this Agreement in good faith, based upon competent medical advice and      other factors that the Board reasonably believes to be      relevant.  As a condition to any benefits, the Board may require      Executive to submit to physical or mental evaluations and tests as the      Board or its medical experts deem reasonably  appropriate. |
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|   | (ii) | In      the event of his Disability, Executive will no longer be obligated to      perform services under this Agreement.  The Bank will pay      Executive, as Disability pay, an amount equal to seventy-five percent      (75%) of Executive’s rate of base salary in effect as of the date of his      termination of employment due to Disability. The Bank will make Disability      payments on a monthly basis commencing on the first day of the month      following the effective date of Executive’s termination of employment due      to Disability and ending on the earlier of: (A) the date he returns to      full-time employment at the Bank in the same capacity as he was employed      prior to his termination for Disability; (B) his death; (C) his attainment      of age 65; or (D) the date this Agreement would have expired had      Executive’s employment not terminated by reason of      Disability.  The Bank will reduce Disability payments by the      amount of any short- or long-term disability benefits payable to Executive      under any other disability programs sponsored by the Bank.  In      addition, during any period of Executive’s Disability, the Bank will      continue to provide Executive and his dependents, to the greatest extent      possible, with continued coverage under all benefit plans (including,      without limitation, retirement plans and medical, dental and life      insurance plans) in which Executive and/or his dependent participated      prior to his Disability on the same terms as if he remained actively      employed by the Bank. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | The      Board may, by written notice to Executive in the form and manner specified      in this paragraph, immediately terminate his employment at any time for      “Cause.”  Executive shall have no right to receive compensation      or other benefits for any period after termination for      Cause.  Termination for Cause shall mean termination because of      Executive’s: |
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|   | (1) | Personal      dishonesty; |
|--------|-----|---------------------------|

|   | (2) | Incompetence; |
|--------|-----|---------------|

|   | (3) | Willful      misconduct; |
|--------|-----|--------------------------|

|   | (4) | Breach      of fiduciary duty involving personalprofit; |
|--------|-----|---------------------------------------------------------|

|   | (5) | Intentional      failure to perform stated duties; |
|--------|-----|----------------------------------------------------|

|   | (6) | Willful      violation of any law, rule or regulation (other than traffic violations or      similar offenses) or final cease and desist order;  or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (7) | Material      breach by Executive of any provision of this  Agreement. |
|--------|-----|------------------------------------------------------------------------|

|   | (ii) | Notwithstanding      the foregoing, Executive’s termination for Cause will not become effective      unless the Bank has delivered to Executive a copy of a resolution duly      adopted by the affirmative vote of a majority of the entire membership of      the Board, at a meeting of the Board called and held for the purpose of      finding (after reasonable notice to Executive and an opportunity for      Executive to be heard before the Board with counsel) that Executive was      guilty of the conduct described above and specifying the particulars of      this conduct. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Voluntary Termination      by Executive.  In addition to his other rights to      terminate under this Agreement, Executive may voluntarily terminate      employment during the term of this Agreement upon at least sixty (60) days      prior written notice to the Board.  Upon Executive’s voluntary      termination, he will receive only his compensation and vested rights and      benefits to the date of his termination.  Following his      voluntary termination of employment under this Section 11(e), Executive      will be subject to the restrictions set forth in Sections 11(g)(i) and      11(g)(ii) of this Agreement for a period of one (1) year from his      termination date. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (f) | Without Cause or With      Good Reason. |
|--------|-----|-----------------------------------------|

|   | (i) | In      addition to termination pursuant to Sections 11(a) through 11(e), the      Board may, by written notice to Executive, immediately terminate his      employment at any time for a reason other than Cause (a termination      “Without  Cause”) and Executive may, by written notice to the      Board, terminate his employment under this Agreement for “Good Reason,” as      defined below (a termination “With Good  Reason”). |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Subject      to Section 12 of this Agreement, in the event of termination under this      Section 11(f), Executive will receive his base salary and the value of      employer contributions to benefit plans in which the Executive      participated upon termination for the remaining term of the Agreement,      paid in one lump sum within ten (10) calendar days of his      termination.  Executive will also continue to participate in any      benefit plans of the Bank that provide medical, dental and life insurance      coverage for the remaining term of the Agreement, under terms and      conditions no less favorable than the most favorable terms and conditions      provided to senior executives of the Bank during the same      period.  If the Bank cannot provide such coverage because      Executive is no longer an employee, the Bank will provide Executive with      comparable coverage on an individual policy basis or the cash      equivalent. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | For      purposes of this Agreement “Good Reason” shall mean the occurrence of any      of the following events without the Executive’s  consent: |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | The      assignment to Executive of duties that constitute a material diminution of      Executive’s authority, duties, or responsibilities (including reporting      requirements); |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | A      material diminution in Executive’s basesalary; |
|--------|-----|-------------------------------------------------------------|

|   | (3) | Relocation      of Executive to a location outside a radius of twenty-five (25) miles from      the Company’s corporate office; or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Any      other action or inaction by the Bank or the Company that constitutes a      material breach of this Agreement; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------|

|   | (g) | Continuing Covenant      Not to Compete or Interfere with      Relationships.  Regardless of anything herein to the      contrary, following a termination by the Bank or Executive pursuant to      Section 11(e) or 11(f): |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Executive’s      obligations under Section 10(c) of this Agreement will continue in effect;      and |
|--------|-----|------------------------------------------------------------------------------------------------------------|

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|   | (ii) | During      the period ending on the first anniversary of such termination, Executive      will not serve as an officer, director or employee of any bank holding      company, bank, savings association, savings and loan holding company,      mortgage company or other financial institution that offers products or      services competing with those offered by the Bank from any office within      thirty-five (35) miles from the main office or any branch of the Bank and,      further, Executive will not interfere with the relationship of the Bank,      its subsidiaries or affiliates and any of their employees, agents, or      representatives. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | To      the extent Executive is a member of the Board on the date of termination      of employment with the Bank, Executive will resign from the Board      immediately following such termination of employment with the      Bank.  Executive will be obligated to tender this resignation      regardless of the method or manner of termination, and such resignation      will not be conditioned upon any event or  payment. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | For      purposes of this Agreement, a “Change in Control” means any of the      following events: |
|--------|-----|----------------------------------------------------------------------------------------------------------------|

|   | (i) | Merger: Polonia      Bancorp (the “Company”) merges into or consolidates with another entity,      or merges another corporation into the Company, and as a result, less than      a majority of the combined voting power of the resulting corporation      immediately after the merger or consolidation is held by persons who were      stockholders of the Company immediately before the merger or      consolidation; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Acquisition of      Significant Share Ownership:  There is filed, or is      required to be filed, a report on Schedule 13D or another form or schedule      (other than Schedule 13G) required under Sections 13(d) or 14(d) of the      Securities Exchange Act of 1934, as amended, if the schedule discloses      that the filing person or persons acting in concert  has or have      become the beneficial owner of 25% or more of a class of the Company’s      voting securities, but this clause (ii) shall not apply to beneficial      ownership of Company voting shares held in a fiduciary capacity by an      entity of which the Company directly or indirectly beneficially owns 50%      or more of its outstanding votingsecurities; |
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|   | (iii) | Change in Board      Composition:  During any period of two consecutive years,      individuals who constitute the Company’s Board of Directors at the      beginning of the two-year period cease for any reason to constitute at      least a majority of the Company’s Board of Directors; provided, however,      that for purposes of this clause (iii), each director who is first elected      by the board (or first nominated by the board for election by the members)      by a vote of at least two-thirds (2/3) of the directors who were directors      at the beginning of the two-year period shall be deemed to have also been      a director at the beginning of such period;or |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | Sale of      Assets:  The Company sells to a third party all or      substantially all of its assets. |
|--------|------|-----------------------------------------------------------------------------------------------------------------|

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|   | (b) | Termination.  If      within the period ending one year after a Change in Control, (i) the Bank      terminates Executive’s employment Without Cause, or (ii) Executive      voluntarily terminates his employment With Good Reason, the Bank will,      within ten calendar days of the termination of Executive’s employment,      make a lump-sum cash payment to him equal to three times Executive’s      average “Annual Compensation” over the five (5) most recently completed      calendar years, ending with the year immediately preceding the effective      date of the Change in Control.  “Annual Compensation” will      include base salary and any other taxable income, including, but not      limited to, amounts related to the granting, vesting or exercise of      restricted stock or stock option awards, commissions, bonuses, retirement      benefits, director or committee fees and fringe benefits paid to Executive      or accrued for Executive’s benefit.  Annual Compensation will      also include, profit sharing, employee stock ownership plan and other      retirement contributions or benefits, including to any tax-qualified plan      or arrangement (whether or not taxable) made or accrued on behalf of      Executive for such year.  The cash payment made under this      Section 12(b) shall be made in lieu of any payment also required under      Section 11(f) of this Agreement because of Executive’s termination of      employment, however, Executive’s rights under Section 11(f) are not      otherwise affected by this Section 12. Following termination of      employment, executive will also continue to participate in any benefit      plans of the Bank that provide medical, dental and life insurance coverage      upon terms no less favorable than the most favorable terms provided to      senior executives.  If the Bank cannot provide such coverage      because Executive is no longer an employee, the Bank will provide      Executive with comparable coverage on an individual basis or the cash      equivalent.  The medical, dental and life insurance coverage      provided under this Section 12(b) shall cease upon the earlier      of:  (i) the Executive’s death; (ii) Executive’s employment by      another employer other than one of which he is the majority owner; or      (iii) thirty-six (36) months after his termination of      employment. |
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|   | (c) | The      provisions of Section 12 and Sections 14 through 26, including the defined      terms used in such sections, shall continue in effect until the later of      the expiration of this Agreement or one year following a Change in      Control. |
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|   | (d) | Notwithstanding      anything in this Section 12 to the contrary, a “Change in Control” for      purposes of this Agreement shall not include any corporate restructuring      transaction by the Bank, including, but not limited to, a mutual to stock      conversion, provided that the Board of Directors of the Bank immediately      preceding such transaction constitutes at least a majority of the Board of      Directors of the Bank after suchtransaction. |
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|   | (a) | Indemnification.  The      Bank agrees to indemnify Executive (and his heirs, executors, and      administrators), and to advance expenses related to this indemnification,      to the fullest extent permitted under applicable law and regulations      against any and all expenses and liabilities that Executive reasonably      incurs in connection with or arising out of any action, suit, or      proceeding in which he may be involved by reason of his service as a      director or Executive of the Bank or any of its affiliates (whether or not      he continues to be a director or Executive at the time of incurring any      such expenses or liabilities).  Covered expenses and liabilities      include, but are not limited to, judgments, court costs, and attorneys’      fees and the costs of reasonable settlements, subject to Board approval,      if the action is brought against Executive in his capacity as an Executive      or director of the Bank or any of its      affiliates.  Indemnification for expenses will not extend to      matters related to Executive’s termination for      Cause.  Notwithstanding anything in this Section 13(a) to the      contrary, the Bank will not be required to provide indemnification      prohibited by applicable law or regulation.  The obligations of      this Section 13 will survive the term of this Agreement by a period of six      (6) years. |
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|   | (b) | Insurance.  During      the period for which the Bank must indemnify Executive, the Bank will      provide Executive (and his heirs, executors, and administrators) with      coverage under a directors’ and officers’ liability policy at the Bank’s      expense, that is at least equivalent to the coverage provided to directors      and senior executives of the Bank. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (a) | This      Agreement shall inure to the benefit of and be binding upon any corporate      or other successor of the Bank which shall acquire, directly or      indirectly, by merger, consolidation, purchase or otherwise, all or      substantially all of the assets or stock of the  Bank. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Since      the Bank is contracting for the unique and personal skills of Executive,      Executive shall not assign or delegate his rights or duties under this      Agreement without first obtaining the written consent of the      Bank. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (a) | The      Bank’s Board of Directors may terminate Executive’s employment at any      time, but any termination by the Bank’s Board of Directors, other than      termination for Cause, shall not prejudice Executive’s right to      compensation or other benefits under this Agreement.  Executive      shall have no  right to receive compensation or other benefits      for any period after termination for Cause as defined in Section 11(d) of      this Agreement. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | If      Executive is suspended from office and/or temporarily prohibited from      participating in the conduct of the Bank’s affairs by a notice served      under Section 8(e)(3) or 8(g)(1) of the Federal Deposit Insurance Act, 12      U.S.C. Section 1818(e)(3) or (g)(1), the Bank’s obligations under this      contract shall be suspended as of the date of service, unless stayed by      appropriate proceedings.  If the charges in the notice are      dismissed, the Bank may, in its discretion:  (i) pay Executive      all or part of the compensation withheld while its contract obligations      were suspended; and (ii) reinstate (in whole or in part) any of its      obligations which were suspended. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | If      Executive is removed and/or permanently prohibited from participating in      the conduct of the Bank’s affairs by an order issued under Section 8(e)(4)      or 8(g)(1) of the Federal Deposit Insurance Act, 12 U.S.C. Section      1818(e)(4) or (g)(1), all obligations of the Bank under this contract      shall terminate as of the effective date of the order, but vested rights      of the contracting parties shall not be  affected. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | If      the Bank is in default as defined in Section 3(x)(1) of the Federal      Deposit Insurance Act, 12 U.S.C. Section 1813(x)(1), all obligations of      the Bank under this contract shall terminate as of the date of default,      but this paragraph shall not affect any vested rights of the contracting      parties. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | All      obligations of the Bank under this contract shall be terminated, except to      the extent determined that continuation of the contract is necessary for      the continued operation of the Bank:  (i) by the Director of the      OTS (or his designee), at the time the FDIC enters into an agreement to      provide assistance to or on behalf of the Bank under the authority      contained in Section 13(c) of the Federal Deposit Insurance Act, 12 U.S.C.      Section 1823(c), or (ii) by the Director of the OTS (or his designee) at      the time the Director (or his designee) approves a supervisory merger to      resolve problems related to the operations of the Bank or when the Bank is      determined by the Director to be in an unsafe or unsound      condition.  Any rights of the parties that have already vested,      however, shall not be affected by suchaction. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Any      payments made to Executive pursuant to this Agreement, or otherwise, are      subject to and conditioned upon compliance with 12 U.S.C. Section 1828(k)      and 12 C.F.R. Section 545.121 and any rules and regulations promulgated      thereunder. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (a) | This      Agreement is intended to comply with the requirements of Section 409A of      the Code, and specifically, with the “short-term deferral exception” under      Treasury Regulation Section 1.409A-1(b)(4) and the “separation pay      exception” under Treasury Regulation Section 1.409A-1(b)(9)(iii), and      shall in all respects be administered in accordance with Section 409A of      the Code.  If any payment or benefit hereunder cannot be      provided or made at the time specified herein without incurring sanctions      on Executive under Section 409A of the Code, then such payment or benefit      shall be provided in full at the earliest time thereafter when such      sanctions will not be imposed.  For purposes of Section 409A of      the Code, all payments to be made upon a termination of employment under      this Agreement may only be made upon a “separation from service” (within      the meaning of such term under Section 409A of the Code), each payment      made under this Agreement shall be treated as a separate payment, the      right to a series of installment payments under this Agreement (if any) is      to be treated as a right to a series of separate payments, and if a      payment is not made by the designated payment date under this Agreement,      the payment shall be made by December 31 of the calendar year in which the      designated date occurs.  To the extent that any payment provided      for hereunder would be subject to additional tax under Section 409A of the      Code, or would cause the administration of this Agreement to fail to      satisfy the requirements of Section 409A of the Code, such provision shall      be deemed null and void to the extent permitted by applicable law, and any      such amount shall be payable in accordance with subsection (b)      below.  In no event shall Executive, directly or indirectly,      designate the calendar year ofpayment. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | If      when separation from service occurs Executive is a “specified employee”      within the meaning of Section 409A of the Code, and if the cash severance      payment under Section 11(f)(ii) or 12(b) of this Agreement would be      considered deferred compensation under Section 409A of the Code, and,      finally, if an exemption from the six-month delay requirement of Section      409A(a)(2)(B)(i) of the Code is not available (i.e., the “short-term      deferral exception” under Treasury Regulations Section 1.409A-1(b)(4) or      the “separation pay exception” under Treasury Section      1.409A-1(b)(9)(iii)), the Bank or the Company will make the maximum      severance payment possible in order to comply with an exception from the      six month requirement and make any remaining severance payment under      Section 11(f)(ii) or 12(b) of this Agreement to Executive in a single lump      sum without interest on the first payroll date that occurs after the date      that is six (6) months after the date on which Executive separates from      service. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | If      (x) under the terms of the applicable policy or policies for the insurance      or other benefits specified in Section 11(f)(ii) or 12(b) of this      Agreement it is not possible to continue coverage for Executive and his      dependents, or (y) when a separation from service occurs Executive is a      “specified employee” within the meaning of Section 409A of the Code, and      if any of the continued insurance coverage or other benefits specified in      Section 11(f)(ii) or 12(b) of this Agreement would be considered deferred      compensation under Section 409A of the Code, and, finally, if an exemption      from the six-month delay requirement of Section 409A(a)(2)(B)(i) of the      Code is not available for that particular insurance or other benefit, the      Bank or the Company shall pay to Executive in a single lump sum an amount      in cash equal to the present value of the Bank’s projected cost to      maintain that particular insurance benefit (and associated income tax      gross-up benefit, if applicable) had Executive’s employment not      terminated, assuming continued coverage for 36 months.  The      lump-sum payment shall be made thirty (30) days after employment      termination or, if Section 27(b) of this Agreement applies, on the first      payroll date that occurs after the date that is six (6) months after the      date on which Executive separates fromservice. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | References      in this Agreement to Section 409A of the Code include rules, regulations,      and guidance of general application issued by the Department of the      Treasury under Internal Revenue Section 409A of the  Code. |
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| ATTEST:        |   | POLONIA      BANK              |
|----------------|--------|--------------------------------|
|           |   |                           |
| /s/ Lynn Lucia |   | By:/s/ Paul D. Rutkowski       |
| Witness        |   |                           | For      the Entire Board of Directors |
|           |   |                           |
| WITNESS:       |   | EXECUTIVE                      |
|           |   |                           |
| /s/ Lynn Lucia |   | By:/s/ Kenneth J.  Maliszewski |
|           |   |                           | Kenneth      J. Maliszewski |

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