UNI I'I'I) S'I A'I'I's BI vent('I MI,N'I')I- 'I'ill. 1 Rl A iUR")'

&()() Vcnnsylv;ini;I Avenue. 'NW

%V;Ishingion„D.C. 2()22(l

I;idlcs iu)d (.)Cntlcn)cn:

RctL(LHCC Is n);)dc to those ceil'iin I.elicr Agicc»1cnlsli'icorf∨)ting ihc SccUI I(ics

V U I'c h i)sL'g I'L cI»c n t. —SIa H d a rd I cr H1s (

Ihe .)('(' I

E' II(',v i III'('(I 1(',f,'r('('I»( VI I

'i', LI 11Icd IIs 0I

Scplcnihc) 2), 2()1(). hctwvccn UHIHB Settle(»cnt hcderal Credit UHIon (thc 3('EJBII('(/ ( I c(l»

(l)IiwI');U)d thc United St;itcs Dcp;Irttncnt ol I rc;Isury ("I)II:(.)»».');II)dd;)ted;is ol Scptci»her

2-(, 2() li) hctvvccn I.ovvcr I;1st Side Vcopfe's feeder;11 Credit Union (ihc "«kcqI(i)(» C.'I cdir (,'»i()»')

Iu)d tf'ic IBvesn)1'. (. af)(tal)/cd lcri»sUscd l)ut Hot defi»cd f)cfcIH shi)11 hiivc ihc I»cai'«1)gs Iissigncrf

io them in thc Securities Vurch;isc Aflrccn)cnts.

'I'hc An)crican Rccovcry;«)d Rcinvcstmcnt A(.t ol'2()()9,;Is it n);iy hc;)mended fron) time

to tinic (the "/&( I"), incfudLspn)visions ref;)ting to executive compcns;)lion iind other m;ittcrs

lhiil. H)iiy hL Inconsistent wvith thc Securities Purchase Agrccmcnts. According) y, Investor;ind

thc Ac(iuiror Credit. Union desirc to conf'irn) their undcrst'«)ding as fL)lfovvs:

I . N~ot)vtthsiiinding 'IBythin« in thc SccU)'Ilies I Ui'chase Agrccnienlsto I hc coHti'i«y,

IH ll'Ic event th'il lhL Aci 01 Iinv IUIcs or I'cgUIat10ns pi'on)uf gated iflcicUHdci'UL InconsisteHt vvitl'I

;in) of ihc lcrms ok thc Securities I'urch;isc Agrecmcnts. thc Act and such rules 'ind rcguf (lions

sh II I cont n) I,

I-or thc;)void;-incc of douht (and ~vithout lin)iting thc gener ility of' ir;igr;iph I'):

(;I) thc piovisioHs ol Scc(IOH 111 of. (he I n)cigcBcy I con(H)) lc Sii(htfl/at)of 1

Act of'2(N)S;Is in)pfcn)cntcd hy thc In(erin) I'in(11 Rufc on 'I"ARV St;indiirds for

Compcns;(lion;ind (.orpor;Itc ()over»i)ncc, 31 (.'.I'.k. Part 3(). Iis;(mended hy thc Act or

other)vise from time to time ("i:/.',A ")„sl)ail;ippfy to thc Ac(fuiror Credit Union;

(h) the vvaivci to hc dclivcl cd hy c(ich of thc Ac(IUII'01 CI'edit Union s Senior

I:xccut)vc Officers pursu'ini to Section,3(«) of the Sccurilies Vurch;isL Agrccn)cnts

shalf, In addition. hc dc) ivcfcd as pr()n'iptly as pi'iclicahl('v 'Iny cui'rent. OI'utuI'c »10st

highly compLns;i(cd cmplr)yecs )vho;Irc Love(cd or;If'1'Lctcd hy Iny;Ippfic;Ihfc rufcs ()r

leg«I()lions Undcl f'f SA; IIHd

(c) thc Ac(fuiror (.."Icdit Union's chic('executive officer;«)d chief'fin;in('i;il

off'iccr sh'ill pn)vide the xvrittcn ccrtific;Ition of'comp(i;Incc hy the Acrfuirol Credit Union

)vith thc rc(fuiren)cuts of Section 111 of' I-'.SA in thc I»;inner speLif'icd hy Section

11!(h)( I) l hcrcrindcr 01'ri;«1) IUIcs OI rcgllltil ion i Under LLSA, )ncluding 31 C..I-.R.ss

3().1&.
I'roln 'llld «tftci Apl il I, 014, cttch I'clcicncc Iil thc Recut Itlcs I LII«ch:lsc Aglcctl)eilts to

"this Agrcemcnt" or 'this Secul3tics I urch;lsc Agree»)ent'* or (vol(js of ltj c import shall nlc«ln

tlnd l)e ll I cfet ence to thc Agl ccnlcl)ts (as dcf1tlcd it'I thc Sec(It'ilies I lll chtlse Agl ccn)cuts) «ls

amended by this fetter agrect))cnt.

This I tt r ll r ment xvijj hc o)«crncjby and con.tru 'd in a ord;In c Lilith thc fcd ral

Ia(«,'f thc I ) nlted States I I (Uld k) thc cxtcilt sUch lith«,'s «tppllcaj3lc, «Ii)d otj)et"6'Isc nl «lccor(lal'lcc

LL'Ith tllc Ia(vs of tl)c St'ttc of Ne()'ot'j; apj)1lcabjc to conti';lets »3«tdc al)d to bc pcl'fol 1Tlcd etltn cly

LL ithin such!3tatc.

'I'his letter 'tgrccn)c»t. the Securities purchase Agtcemcnts, the post-Merger Side I.etter,

«lnd «113y othci d('tclllrieHts exccUtc(f 13y the p«lilies at thc (, losing constitute thc entire agreetnent of

tl1L I)'ll ties LL'I lh I csl3cct to thc sllb lect nlat tet'ei c()f.

Niothi»g tn this letter t)green)ct)t sh;ill bc deemed;ln adnltssion by Investor as to the

Ilcccssl ty of ol3t«»lit ng tile co11scllt of the (, I'edit L '»ion ill or(fci to elf eel the cj)«1I)gcs to thc

,)ccut tttes Vut«ch«lsc Agrcctncnts contemplated by this letter;lgrecment, nor shall at3ythtng ttl thts

letter 1««rccmcnt bc deemed to re(juirc l»vcstor to ohtliin thc consent of any other "I'ARI'eeipiet)t

I'ts defined in thc Act) participatin„ itl thc L'ommunity Dc) cloplncnt (.''Ipit;tj Initiative (the

"O'I)6'I") in order to effect ch;mgcs to thetr doeuincnt«ltlon under thc ('DPI.

This letter 'Lgl'eel)lent I))it% 13c cxccutcd il'I ally nltl))bet'f scj)artitc coUI)tct pints, ellch sucll

COLllltct p«ll t being deCmed to l)C an (3I igl i)ill Instl Luncnt, «lnd «111 SUCh Coll»tel 1)UI IS Wtl I k)t«ctl ICI

constltlttc the sill)lc agt cetnct)t. f'xceuted sign(it(ll'c pages to this lcttcl aglcclrlcnt nl«ly 13c

delivered by f;lcsinlilc and such facsimiles )vijj bc deci»cd sufficient «ls it actu;11 signltturc p;tgcs

hlid been deli) cred.

jRC)»(ti)td&) ()/'Ilti» l)«tt«« i»tc»ti()»(IIII l(li /)l(»tl«j
LO~R EAST SIBEPEOPLE'S FEDERAL

CREDIT ~ION
ln u:itncss ~vhcrcnf; tltc p;tr tie~ have ~Iuiy cxccutcd

titian

Ict tcl ah~I'cctncnt nli 01 thc «late

Iieet vvtittcn ah~&ac.

I,'Nl I'I:D S I'A I [S DI':I'ARTMI'N'I'ITHI: I REASY.!ICY

jg v.

Name:

Title:

I.OA'I-;I& I;AS I'l DI; I'I.:OI'I I."'*S I'I.'DI.I&AI..

('Rl'.DIT I iN ION
UMTED STATES Dl'PAYMENT Ol'11E Tlu".'ASURY

1 500 Pennsylvania Avenue, N%

lshlngion, D C 20-20

October 31, 2014

Lacllcs Qnd

Gent.cn'ken'eference

is made lo both (i) that certNn 1 etter. Agreement incorporating the Securities

Purchase Agreement -- Standard '1 erms dated as of September 29, 2010 (thc "«fcqitired C/:eo'it

U/77«3/7 Scci/7'/f/c'5 J Io'«".Iw«l/'jg/"88777877/ ) by Bnd Nl'Iong tl'lc Unltcd States DcpQFlnlent oftl'le

Treasury (the '"I77V~&sto/"") and Union Settlement 1"ederal Credit Union (the "~fcql/7'/ E7d C/ edit

U777077 )

Q!'Id (I!)thBI cert«ill'I Lcttcl Agl'cclncnt Incorpol'Qtlng tl'!c Sccul'ltlcs Purchase Agreen'lcl'll-

- Standard 'I"crms dated Bs ot September 24, 2010 (the "~it.'qlt 7/ o/'/'ed/ t u./7077 Recit/'/ttes

17777'chAic'..~lg/'6':c/77e/7t, Qnd togctl'Ici'ith thc Acqllll'cd Cl cell!, Ul'Uon SccUI'ltles Purchase

Agrccnlcnt, the R'CI//'lt/cs J 17/"I.'/Mse Ag/'%877/er/ts ) by Enid Eunong lnvcstoF Nld LowcF l,ast Side

Pcoplc'8 I'cdcral. CFedi't Union ('thc «'~fc(JI/7/"07''"86At UI77077 '„collectively, Acquiror CI'edit

Union and Acquired Credit Union N*c referred to as the "Credit Unions" ), Further detEIil

regardmg both Secuntlcs Purchase Agreements are set forth on Schedule A hereto investor Bnd

Credit Unions desll'c to sct fol'th 1'lcfeln certain additional Eigreclnents «ls B I'csult of tlic

consulrilHBtlon of B nlel'gci'ransactlorl pul'sUNlt to Qn Agrccnlcl'lt NK1 PlNI of Mei'gcl'«ated Bs of

MN'cl'I 14, 2014 by Bild EUTIong AcqUlror Crccht Ul'Uo!'I Nld Acquired Credit Unlol'I, cffcctive on

April 1, 2014 I the '5'fe/ge/ "I'/.a/7~a/."Iio/7'"). This letter shall be referred to as thc "Post-Merger

Side Letter." Capitalized telms used but not defmed herein shall have the meanings assigned to

/heir! 113 tl'Ic Sccul'!ties PLlrclrasc Agl'ccITIcnts,

As Q, result of thc Mcrgcl'rallsaction, the Acqull'ol'lccllt Union has assumed the

013llgatlorls N'icl Fcsponslbilltlcs OI Acquil'cd Credit Union with I'cspcct to lnvcstol', In add!tlon to

its owl'1. Spec if leal ly',

1, Concurrently herewith, the Acquiror Credit Union is paying all accrued and

UllpNd Intel.cst on thc Acquired Credit Unlol'I 8 Scl'i!or Sul30rdlnatcd Sccurltlcs B«nil Is

lssUlng ncw senior sul30rdnlatcd secUI'I!les ln cxcllangc lol'hc Acquired CI'edit Ui'lion s

Scnlol Subordinated Securities', Bnd

2, Pursuant to SectIOI3 4,2(Q) of the Securities 1 Ui«chase Agrccnlcnts BIKl effective Bs

Of April 1, 2014, Acqulror Credit Union hereby expressly Bssuirles the due Bncl punctual

pel'fornlN'lcc BBd 013sci.vai'lcc OI each Nld cvcrv covenant~ Elgl'ecnlcnt~ EInd condition of thc

Secuntlcs Purchase Agreements and all ancillary documents lo be perf:ormcd and

observed by Acquired Cl'edit Ul'lion,

ln connection with the foregoiilg„with the exception OI'the Sccurilies Purchase

Agrcelncnts, AcquIFOF ("Fedil Union 18 Issuing new docunlentallon to 1nves! 01 to reflect thc

n'Ivcstn'lent thBt Investor initially llladc ln the Acquired Credit Union. Including thc following (Qll

section l«cfcrenccs below Qrc to thc Seoul'ltics PUI'chase Agrcen'1CBts. Unless 0111CFwlsc provided)'.
Umtcd States L)epN'tnlent 01 tl'1c Ireasury

Prtge

1, 811 OffiCCi S CC1'tilieatC reg«trdiBg (8}8 bring clowii OI lhc reprcseAtatiolis 11'1 both

Securit1cs PurclMse Agi'cemcnts Bs of Api'1l 1, 2014, pcf. Section 2,3(c)„withBny exceptions to

sUcl'1 I'cpi'cscntations noted OII 8 disc]osure schedule «ittachcd hereto Ql'Kl (b) coniplla11cc with

section 111(b)ofthe Emergency Economic Stabilization Act of 2008, «is amended by the

Ainci'lean RecovcFy Bnd Rcitivcstmcnt Act OI 2009 (* AI RA ), as ol Apl'll 1, 2014, pci'ection

2,3(f)(ii),',

~vaivers I'rom Scnioi Executive OIIicers Nicl Others 1n Bccot'dance with tlic ARV~,

releasing Investor from certain claims, dated as of the date hercot„ 13er Section 2.3(g);

3, a legal opinion regarding thc Ncw Senior Subordinated Securities (Bs defined

below), per Section 2.3(h);

4. certificated securities representing Ni amount ol nevi~ Senior Subordinated

Securities issued by the Acquiror Creclit Union to replace the Acquired Credit Union's Senior

iSU130FdiisatcE1 Sccurit1cs (the Xeiv 88/2/(3/'2/Ao/d//20/PEt i5(."(",///'2/ll'-s

8 s1dc lcttel'egarding coiiipli«ulcc with ARF~,'ncl

6. 8 copy of the articles Bnd bylaws ofthe Acquiror Credit Union,

Ac(iuii'or Credit Ui'110n hereby aclitlowlcdgcs 1cccipt of cacli oftl'ic closing doctmlenls in

connect1013 with coch ot tl'1c 1miial liivcstol closings f(31'cquired Cl edit U/1101i Nid Acquiior

Credit Union, with the except).on 01'he Se(;uritics Purchase Agreemcnls,

Tliis side lctlc1'gI'ccincnt, the SccUi"1lics PUicl'iasc Agrcclncl'its Bnd thc «il30vc" hstccl

docUirlc1'itation constttUtcs lhc entil'c agreement) an('1 supersedes Qll Olhcr pi'101'greelnents,,

understandings, rcpi'esenlat1013s Nid wart'Qnticb, 130tl'1 written and Oral, betwect3 llle pal'ties vvill'1

1'cspcct to thc subject niattef hereof',

This side lctler QgrccITlel'il n3ay be execulcd 1n coutlterparts, cticli of xvhlch shall bc

deemed Qn original and all of vvhich shall together constitute one and thc same instrument. '1 his

side lett(;I Bgiccllicnt sl'iall 13c govciTied bv Bnd construed 1n accordNlcc willi thc I'edcral Iaiv 01

the United States if Qnd to the extent such law is applicable, and othci vvise in accordance with the

laws ofthe Slate of New Yorl& applicable to contracts made and to be peri'ormecl entirely within

Si,lel'1 StatC,

t8('.Pir//22ik'/'f /!2/S ~E/gE', I/2/C//ll(3YIClllV tej/ t/tE(lltEL
United States Department of the Treasury

Signature Page

ln witness whereof, this side letter agreement has been duly executed by thc authorized

representatives of the pm ties hereto as of the date hrst above written.

LOWER EAST SIDE PEOPLE'

FEDIERAL CREDIT UNION

By:

NRITI(; fI('fl6&"+gg I

Title: 1

UNION SETTLEMENT FEDERAL

CRXD1T UNION

Name: g~~-„'~p Pc;~& ~-»',4 L.U YI

Ti

tie'NITED

STATES DEPARTMENT OF

THE TREASURY

By:

Name:

Title:

$1CfVA 1'llRE PACETO RfERCER Tfl flVSJCJ'f0'IOEf.E1TER:LCRf EMEIVT
United States Department ofthe Treasury

Signature Page

In witness whereof, this side letter agreement has been. duly executed by the authorized

representatives ofthe parties hereto as ofthe date first above written.

Name;

Title:

~TED STATES 9KPART~NT OF

THK TRKASURV

a,

Nam

Title:

SIGNA TIIREPAGE TO MERGER

TRANSDUCTION

SIDE LETTER AGREE%Eh'T