exv10w34






Exhibit 10.34




Hudson City Bancorp, Inc.

2006 Stock Incentive Plan




Performance Stock Option Agreement



Name:

Employee No.:

Address:



This Performance Stock Option Agreement is intended to set forth the terms and conditions on which
a Performance Stock Option (an “Option”) has been granted under the Hudson City Bancorp, Inc. 2006
Stock Incentive Plan (the “Plan”). Set forth below are the specific terms and conditions
applicable to this Performance Stock Option. Attached as Exhibit A are its general terms and
conditions.




	 	 	 	 	 
	Option Grant	 	(A)
	Grant Date:
	 	 	1/22/2010	 
	Option Expiration Date*
	 	 	1/21/2020	 
	Class of Optioned Shares*
	 	Common
	No. of Optioned Shares*
	 	 	 	 
	Exercise Price per Share*
	 	 	 	 
	Option Type (ISO or NQSO)
	 	NQSO
	VESTING:
	 	 	 	 
	Earliest Exercise Date*
	 	 	1/22/2013	 
	Performance Condition(s)
	 	See Appendix B to Exhibit A








 




			
	*	 	Subject to adjustment as provided in the Hudson City Bancorp, Inc. 2006 Stock Incentive Plan
and Exhibit A attached hereto.




By signing where indicated below, Hudson City Bancorp, Inc. (the “Company”) grants this Performance
Stock Option on the specified terms and conditions, and the Recipient acknowledges receipt of this
Performance Stock Option Agreement, including Exhibit A, and agrees to observe and be bound by the
terms and conditions set forth herein.




	 	 	 	 	 	 	 	 	 

	Hudson City Bancorp, Inc.	 	 	 	Recipient	 	 
	 
	By
	 	 	 	 	 	 	 	 
	 

	 	 

Name:
	 	 
	 	 

Name:
	 	 
	 

	 	Title:	 	 	 	 	 	 





Instructions: This Performance-Based Stock Option Agreement should be completed by or on
behalf of the Compensation Committee. Any blank space intentionally left blank should be crossed
out. An option grant consists of a number of optioned shares with uniform terms and conditions.
Where options are granted on the same date with varying terms and conditions (for example, varying
exercise prices or earliest exercise dates), the options should be recorded as a series of grants
each with its own uniform terms and conditions.








 









 








EXHIBIT A




Hudson City Bancorp, Inc. 2006 Stock Incentive Plan




Performance Stock Option Agreement



General Terms and Conditions



     Section 1. Option Size and Type. The number of shares of Common Stock, par
value $.01 per share (“Shares”), that have been optioned to you is specified in this Performance
Stock Option Agreement. If the “Option Type” shown for your Options is “ISO”, then your Options
have been designed with the intent that they qualify to the maximum permissible extent for the
special tax benefits applicable to incentive stock options under the Internal Revenue Code of 1986.
If the “Option Type” shown for your Options is “NQSO” or is blank, incentive stock option tax
treatment is not applicable.



     Section 2. Exercise Price. The Exercise Price for your Options is the price per
Share at which you may acquire the Shares that have been optioned to you and is specified in this
Performance Stock Option Agreement. As a general rule, the Exercise Price for your Option will not
change unless there is a stock split, stock dividend, merger or other major corporate event that
justifies an adjustment under section 15.3 of the Plan.



     Section 3. Vesting.



     (a) Vesting Conditions. You may not exercise your Options until they are vested.
Your Options will be vested if and when you have satisfied BOTH of the following conditions:




	 	•	 	You must remain in the continuous service of the Company, Hudson City
Savings Bank or an affiliate of the Company by which you are employed (your
“Employer”) through the Earliest Exercise Date shown in this Performance Stock
Option Agreement (“Service Conditions”).
	 
	 	•	 	You must satisfy any Performance Condition(s) specified in this
Performance Stock Option Agreement (“Performance Conditions”).





     As a general rule, if you have satisfied BOTH the Service Conditions and the Performance
Conditions, you may acquire the Shares that have been optioned to you by exercising your Options.
Otherwise, you may not. You exercise your Options by following exercise procedures prescribed by
the Compensation Committee of the Company and available on request through the Company’s Human
Resources Department.



     (b) Continued and Accelerated Vesting. If your service terminates with your Employer
due to your Retirement (as defined in the Plan), any Options for which you have met the Service
Conditions on or before the date of such Retirement, but which have not yet vested, will become
vested on or following their Earliest Exercise Date, on satisfaction of their respective
Performance Conditions, subject to your agreement to and continued compliance with the retirement
agreement in section 14 of this Performance Stock Option Agreement. If your service terminates
with your Employer due to your death or Disability (as defined in the Plan), all Service Conditions
on your Options will be deemed fully satisfied, and the vesting of your Options will depend only on
satisfaction of the Performance Conditions, without any further action on your part. In addition,
in the event of Change in Control (as defined in the Plan) followed by your discharge without
Cause (as defined in the Plan) or your resignation with Good Reason, your Options will be fully and
immediately vested on the date your employment with your Employer terminates. You will be
considered to have Good Reason for a voluntary resignation if: the effective date of resignation
occurs within ninety (90) days after any of the following: (a) the failure of your Employer
(whether by act or omission of its Board of Directors, or otherwise) to appoint or re-appoint or
elect or re-elect you to the position(s) which you held immediately prior to the Change in Control
(other than to any such position as an officer of its Board of Directors), or to a more senior
office; (b) if you are or become a member of the Board of Directors of your Employer, the failure
of the shareholders (whether in an election in which you stand as a nominee or in an election where
you are not a nominee) to elect or re-elect you to membership at the expiration of your term of
membership, unless such failure is a result of your refusal to stand for election; (c) a material
failure by your Employer, whether by amendment of its certificate of incorporation or organization,
by-laws, action of its Board of Directors or otherwise, to vest in you the functions, duties, or
responsibilities prescribed in an employment or retention agreement (other than such functions,
duties or responsibilities associated with a position as an officer of the Board of Directors);
provided that you shall have given notice of such failure to the Company and your Employer and your
Employer has not fully cured such failure within thirty (30) days after such notice is deemed
given; (d) any reduction of your rate of base salary in effect from time to time, whether or not
material, or any failure (other than due to reasonable administrative error that is cured promptly
upon notice) to pay any portion of your compensation as and when due; (e) any change in the terms
and conditions of any compensation or benefit program in which you participate which, either
individually or together with other changes, has a material adverse effect on the aggregate value
of your total compensation package, disregarding for this purpose any change that results from an
across-the-board reduction that affects all similarly situated employees in a similar manner;
provided that you shall have given notice of such material adverse effect to the Company and your
Employer, and your Employer has not fully cured such failure within thirty (30) days after such
notice is deemed given; (f) any material breach by your Employer of any material term, condition or
covenant contained in an employment or retention agreement; provided that you shall have given
notice of such material breach to the Company and your
Employer, and your Employer has not fully cured such failure within thirty (30) days after
such notice is



 









 




deemed given; or (g) a change in your principal place of employment, without your
consent, to a place that is not the principal executive office of your Employer or a relocation of
your Employer’s principal executive office to a location that is both more than twenty-five
(25) miles away from your principal residence and more than twenty-five (25) miles away from the
location of your Employer’s principal executive office on the date of the Change in Control; or
(h) if you are the Chief Executive Officer of the Company immediately prior to the Change in
Control, any event or series of events that results in your ceasing to be the Chief Executive
Officer (or most senior executive officer, however denominated) of a successor company (I) whose
common equity securities are traded on a national securities exchange and (II) is the owner of 100%
of the outstanding common stock of Hudson City Savings Bank or its successor and (III) is not
controlled (within the meaning of the federal Change in Bank Control Act) by any other person or
entity. You do not have to satisfy any Performance Conditions to qualify for accelerated vesting
upon discharge without Cause or resignation with Good Reason following a Change in Control.
Options that vest on an accelerated basis will, in general be exercisable as soon as they are
vested.




     (c) Forfeitures. When you terminate service, you will forfeit all Options that have
not vested, and do not vest on an accelerated basis on, or continue to vest following, your
termination date due to the circumstances of your termination. When you forfeit Options, you
relinquish any and all rights that you have to acquire the Shares underlying the Options.



     (d) Definition of Service. For purposes of determining the vesting of your Options,
you will be deemed to be in the service of your Employer for so long as you serve in any capacity
as a common-law employee, non-employee director or consultant of your Employer.



     Section 4. Exercise Period.



     (a) General. You will have the right to purchase all or any portion of your Option
at any time during the period (“Exercise Period”) beginning on the applicable Earliest Exercise
Date (or any earlier date when the Option has vested on an accelerated basis) and ending on the
earliest to occur of the following dates:




     (i) the Option Expiration Date specified in this Performance Stock Option
Agreement;




     (ii) the date and time of your Termination for Cause (as defined in the Plan)
or voluntary resignation in anticipation of Termination for Cause;




     (iii) the last day of the three-month period that begins on the date and time
you terminate Service, other than on, or in anticipation of, Termination for Cause,
for any reason other than Retirement, death or Disability (each capitalized term as
defined in the Plan);




     (iv) the last day of the five-year period that begins on the date and time you
terminate Service, for death or Disability, or for Retirement subject to your
agreement to and continued compliance with the retirement agreement in section 14 of
this Performance Stock Option Agreement (each capitalized term as defined in the
Plan); and




     (v) the last day of the ten-year period commencing on the date on which the
Option was granted.


This paragraph (a) shall apply to each and every option to purchase Common Stock that has been
granted to you under the Hudson City Bancorp., Inc. 2006 Stock Incentive Plan and is outstanding to
you on January 22, 2010, The written agreement evidencing each such option is hereby amended to the
extent necessary to give effect to the preceding sentence.




     (b) Special Circumstances in which the Exercise Period Will Be Extended.




     (i) If you hold vested Options and there is a Change in Control (as defined in
the Plan) on or before the Option Expiration Date, the date on which the Exercise
Period expires will be extended to the earliest of (A) the third (3rd)
anniversary of the date of the Change in Control; and (B) the tenth
(10th) anniversary of the Grant Date; or (C) any later date determined
under section 4(b)(ii) of this Performance Stock Option Agreement.




     (ii) If on the date the vested Options are scheduled to expire, you are unable
to exercise the Options or sell the Shares on a national securities exchange without
violating applicable federal, state or local securities laws or the terms of a
securities trading blackout or other trading suspension described in section
5.4(b)(iii) of the Plan, the Exercise Period will be extended to the earliest of (A)
ninety (90) days after the last day of the trading suspension; and (B) the tenth
(10th) anniversary of the Grant Date; or (C) any later date determined
under section 4(b)(i) of this Performance Stock Option Agreement.



     (c) ISOs. To qualify for the favorable tax treatment accorded to incentive stock
options, you must exercise any Options that are designated as ISOs within three months after you
terminate service as a common-law employee of the Company and its subsidiaries for any reason other
than disability and within one year after you terminate service as a common-law employee due to
your death or disability. If they are exercised later, they will be subject to tax as if
they were designated as NQSOs. If you die while you are a
common-law employee of the Company and
its subsidiaries, within three months after termination of service as a



 









 




 common-law employee for any
reason other than your disability or within one year after your termination due to your disability,
your estate or designated beneficiaries may be eligible for the favorable tax treatment accorded
to Options designated as incentive stock options upon their exercise at any time during the
remaining unexpired Exercise Period. Please refer to your Prospectus for a more detailed summary
of tax consequences.




     Section 5. No Right to Continued Service. Nothing in this Performance Stock Option
Agreement or any action of the Board or Committee with respect to this Performance Stock Option
Agreement shall be held or construed to confer upon you any right to a continuation of service by
your Employer. You may be dismissed or otherwise dealt with as though this Performance Stock
Option Agreement had not been entered into.



     Section 6. Taxes. Where any person is entitled to receive Shares pursuant to the
exercise of the Option granted hereunder, the Company shall have the right to require such person
to pay to the Company the amount of any tax which the Company is required to withhold with respect
to such shares, or, in lieu thereof, to retain, or to sell without notice, a sufficient number of
Shares to cover the amount required to be withheld.



     Section 7. Notices. Any communication required or permitted to be given under the
Plan, including any notice, direction, designation, comment, instruction, objection or waiver,
shall be in writing and shall be deemed to have been given at such time as it is delivered
personally or five (5) days after mailing if mailed, postage prepaid, by registered or certified
mail, return receipt requested, addressed to such party at the address listed below, or at such
other address as one such party may by written notice specify to the other party:


     If to the Company:



Hudson City Bancorp, Inc.

West 80 Century Road

Paramus, New Jersey 07652

Attention: Corporate Secretary





     If to your Employer, to the Employer in care of Hudson City Bancorp, Inc., at
the Company’s address specified for notices under this Performance Stock Option
Agreement




     If to the Recipient, to the Recipient’s address as shown in the Company’s records.



     Section 8. Restrictions on Transfer. The Options granted hereunder shall not be
transferable by the Recipient other than by will or by the laws of descent and distribution, to a
Family Member (as defined in the Plan) or as otherwise permitted by the Plan. To designate a
Beneficiary to receive any Options that remain outstanding at the time of your death, you must
complete and file the Beneficiary Designation attached to this Performance Stock Option Agreement
as Appendix A or another form provided by the Human Resource Department.



     Section 9. Successors and Assigns. This Performance Stock Option Agreement shall
inure to the benefit of and shall be binding upon the Company and you and the Company’s successors
and assigns and your respective heirs, successors and assigns.



     Section 10. Construction of Language. Whenever appropriate in the Performance Stock
Option Agreement, words used in the singular may be read in the plural, words used in the plural
may be read in the singular, and words importing the masculine gender may be read as referring
equally to the feminine or the neuter. Any reference to a section shall be a reference to a
section of this Performance Stock Option Agreement, unless the context clearly indicates otherwise.
Capitalized terms not specifically defined herein shall have the meanings assigned to them under
the Plan, as amended from time to time.



     Section 11. Governing Law. This Performance Stock Option Agreement shall be
construed, administered and enforced according to the laws of the State of New Jersey without
giving effect to the conflict of laws principles thereof, except to the extent that such laws are
preempted by the federal law. The federal and state courts located in the Counties of New Jersey
shall have exclusive jurisdiction over any claim, action, complaint or lawsuit brought under the
terms of this Performance Stock Option Agreement. By accepting this Performance Stock Option
Agreement, you agree to submit yourself, and any such legal action as you shall bring under the
Plan, to the sole jurisdiction of such courts for the adjudication and resolution of any such
disputes.



     Section 12. Amendment. This Performance Stock Option Agreement may be amended, in
whole or in part and in any manner not inconsistent with the provisions of the Plan, at any time
and from time to time, by written agreement between the Company and you.



     Section 13. Plan Provisions Control. This Performance Stock Option Agreement and the
rights and obligations created hereunder shall be subject to all of the terms and conditions of the
Plan. In the event of any conflict between the provisions of the Plan and the provisions of this
Performance Stock Option Agreement, the terms of the Plan, which are incorporated herein by
reference, shall control. By signing this Performance Stock Option Agreement, you acknowledge
receipt of a copy of the Plan. You acknowledge that you may not and will not rely on any statement
of account or other communication or document issued in connection with the Plan other than the
Plan, this Performance Stock Option Agreement, and any document signed by an



 









 




authorized
representative of the Company that is designated as an amendment of the Plan or this Performance
Stock Option Agreement.




     Section 14. Retirement Agreement. The following terms apply subject to your
termination of employment with your Employer due to your Retirement (as defined in the Plan), while
unexercised Options remain under this Restricted Stock Option Agreement.



          (a) Covenants.





     (i) Confidential Information. Unless you obtain the prior
written consent of your Employer, you shall keep confidential and shall
refrain from using for the benefit of yourself, or any person or entity other
than your Employer and its parents and subsidiaries and any subsidiary of any
of your Employer’s parents (your Employer and such entities collectively,
your “Employer’s Affiliated Group”), any material document or information
obtained from a member of your Employer’s Affiliated Group in the course of
your service with any of them concerning their current or planned future
properties, operations or business, including but not limited to information
concerning your Employer’s current and future customers (the “Confidential
Information”) unless and until such document or information is readily
ascertainable from public or published information or trade sources or has
otherwise been made available to the public through no fault of your own;
provided, however, that nothing in this section 14(a)(i) shall prevent you,
with or without your Employer’s consent, from participating in or disclosing
documents or information in connection with any judicial or administrative
investigation, inquiry or proceeding to the extent that such participation or
disclosure is compelled under applicable law; in such event, you shall, to
the extent practicable under the circumstances, notify your Employer in
advance of and afford your Employer an opportunity, at its own expense, to
take action to prevent or limit the scope of such participation or
disclosure.




     (ii) Proprietary Information. You acknowledge that, during the
course of your service to your Employer, you have, alone or jointly with
others, developed or had access to information (whether in written, oral,
electronic or other form) concerning your Employer’s Affiliated Group’s
business plans, marketing plans, methods and surveys, product and service
design, development and pricing plans and methods, customer lists, prospect
lists, customer relationship information and need assessments, profitability
assessments, technology, service marks, trademarks and other intellectual
property, trade secrets, know-how and other proprietary information
concerning the Employer’s Affiliated Group (the “Proprietary Information”).
You acknowledge that all such Proprietary Information is, as between you and
the Employer’s Affiliated Group, the sole property of the Employer’s
Affiliated Group and that you have no right, title or interest therein.
During your service to the Employer and at all times thereafter, you shall
refrain from using any Proprietary Information for the benefit of any person
or entity other than the Employer’s Affiliated Group. At any time upon the
Employer’s request, and in any event upon your termination of service with
the Employer, you shall promptly return to the Employer all Proprietary
Information in your possession in any form or media and all laptop computers,
cell phones and other property of the Employer’s Affiliated Group in your
possession and shall, if requested to do so by the Employer, certify in
writing that any Proprietary Information not so returned has been destroyed.




     (iii) Non-disturbance. The Employer’s Affiliated Group conducts
a commercial banking business at branch locations in New York, New Jersey and
Connecticut (such states, together with any other city or county in which
Hudson City Savings Bank subsequently maintains or establishes a plan to open
a branch office, the “Employer’s Geographic Market”). You shall not, without
the written consent of the Employer, either directly or indirectly: (1)
solicit, offer employment to, or take any other action intended to cause, any
officer or employee of the Employer’s Affiliated Group to terminate his or
her employment and accept employment or become affiliated with, or provide
services for compensation in any capacity whatsoever to, any entity that
directly or indirectly competes with the Employer’s Affiliated Group in the
Employer’s Geographic Market; (2) other than in a manner consistent with
Employer policy, solicit, provide any information, advice or recommendation
or take any other action intended to have the effect of causing any customer
of the Employer’s Affiliated Group to terminate an existing business or
commercial relationship with the Employer’s Affiliated Group.




     (iv) Non-derogation. You shall refrain from making any
statement (whether or not in writing) concerning the Employer’s Affiliated
Group or its business, operations, customers, directors, officers, employees
or owners that you intend, or that a reasonable person acting in like
circumstances
would expect, to impair in any respect the Employer’s Affiliated Group’s
business, operations or reputation.



 









 






     (b) Reasonableness of Covenants. You acknowledge that: (i) the
Employer has a legitimate business interest in preserving its investment in its
Confidential Information and Proprietary Information, and its relationships with its
officers, employees, and customers; (ii) the restrictions set forth in this section
14 constitute reasonable restrictions to protect the Employer’s legitimate business
interests; (iii) such restrictions are reasonable in duration, geographic scope and
scope of business protected; (iv) observing such restrictions will not unreasonably
impair your ability to seek or secure employment following your Retirement (as
defined in the Plan) from your Employer; and (v) the continued vesting provided
under section 3(b) of this Performance Stock Option Agreement and the extended
Exercise Period provided under section 4(a)(iv) of this Performance Stock Option
Agreement, constitute adequate consideration for his adherence to such restrictions.
If you have any unexercised Options under this Performance Stock Option Agreement
on the date of your Retirement (as defined in the Plan), you waive your right, as of
your Retirement (as defined in the Plan), in any action or proceeding relating to
the enforcement or enforceability of the provisions of this section 14, to make any
argument or assertion to the contrary.




     (c) Specific Performance. You acknowledge that money damages will not
be an adequate remedy for your failure to observe or perform any of the covenants
set forth in section 14(a). Therefore, your Employer shall have the right to apply
to any court of competent jurisdiction for equitable relief, including but not
limited to a temporary restraining order or injunction ordering specific
performance. You hereby waive your right, in any action or proceeding relating to
any application for equitable relief, to make any argument or assertion to the
contrary.




     (d) Reformation or Modification. In the event that this section 14 or
any portion hereof shall be found by an arbitrator or court of competent jurisdiction
to be unenforceable as written, such court or arbitrator shall, and is hereby
authorized, to modify this section 14 or any portion thereof in such manner as it
determines to be necessary to render this section 14 enforceable to the maximum
possible extent and to enforce this section 14 as so modified.













Appendix A to Performance Stock Option Agreement

Hudson City Bancorp, Inc. 2006 Stock Incentive Plan





 









 








Performance Stock Option – Beneficiary Designation Form









			

	GENERAL 

INFORMATION

	 	Use this form to designate the Beneficiary(ies) who will receive vested Performance Stock Options outstanding to you at the time of your death.






	 	 	 	 	 	 	 	 	 

	Name of Person
	 	 	 	 	 	 	 	 
	Making Designation

	 	 	 	Employee No.	 	 	 	 
	 

	 	 

	 	 	 	 

	 	 






	 	 	 

	BENEFICIARY 

DESIGNATION

	 	Complete sections A and B. If no percentage shares are specified, each Beneficiary in the same class (primary or contingent) shall have an equal share. If
any designated Beneficiary predeceases you, the shares of each remaining Beneficiary in the same class (primary or contingent) shall be increased
proportionately.





A. PRIMARY BENEFICIARY(IES). I hereby designate the following person(s) as my primary Beneficiary(ies), reserving the right to change or revoke this designation at any time prior to my death:




	 	 	 	 	 	 	 	 	 	 	 
	Name	 	Address	 	Relationship	 	Birth Date	 	Share
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	%
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	%
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	%
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Total = 100%






B. CONTINGENT BENEFICIARY(IES). I hereby designate the following person(s) as my contingent Beneficiary(ies) to receive benefits only if all of my primary Beneficiaries should predecease me, reserving the right to change or revoke this
designation at any time prior to my death with respect to all outstanding Performance Stock Options:




	 	 	 	 	 	 	 	 	 	 	 
	Name	 	Address	 	Relationship	 	Birth Date	 	Share
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	%
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	%
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	%
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Total = 100%







I understand that this Beneficiary Designation shall be effective only if properly completed and received by the Corporate Secretary of Hudson City Bancorp, Inc. prior to my death. I
also understand that an effective Beneficiary Designation revokes my prior designation(s) with respect to all stock options outstanding to me under the 2006 Stock Incentive Plan and any
other prior or subsequent stock option plan, program or arrangement of Hudson City Bancorp, Inc.




	 	 	 	 	 	 	 

	S

	 	H	 	 	 	 
	I

	 	E	 	 	 	 
	G

	 	R
	 	 
Your Signature
	 	Date
	N

	 	E
	 	 
	 	 










	 	 	 	 	 

	 


	 	Internal Use Only
	 	 












							

	This Beneficiary Designation was received by the Corporate
Secretary of Hudson City Bancorp, Inc. on the date indicated.	 	 	 	Comments
	 
	 	 	 	 	 	 
	By
	 	 	 	 	 	 
	 

	 	 

Authorized Signature                    Date
	 	 	 	 















 









 








Appendix B to Performance Stock Option Agreement

Hudson City Bancorp, Inc.

2006 Stock Incentive Plan




Performance Conditions for Performance Stock Options Granted on January 22, 2010





	1.	 	As to one-half (1/2) of the awarded Performance Stock Options: Diluted Earnings Per Share:





	 	 	 	 	 

	 

	 	Measurement Period:
	 	the period beginning January 1, 2010 and ending December 31, 2012
	 
	 	 	 	 
	 

	 	Performance Criterion:
	 	the Company’s Diluted Earnings Per Share calculated quarterly on a
consolidated basis equal to profit for the quarter divided by the number of shares of
the common stock that would be outstanding if all convertible securities were
exercised, as reported in the Company’s Consolidated Statements of Income, determined
on the basis of generally accepted accounting principles consistently applied in the
preparation of the Company’s financial statements as of January 22, 2010, as reported
in the Company’s Selected Financial Ratios.
	 
	 	 	 	 
	 

	 	Performance Condition:
	 	the sum of the Company’s Diluted Earnings Per Share for any four
consecutive quarters in the Measurement Period must be greater than or equal to $1.18.







	2.	 	As to one-half (1/2) of the awarded Performance Stock Options: Operating Efficiency:





	 	 	 	 	 

	 

	 	Measurement Period:
	 	the period beginning January 1, 2010 and ending December 31, 2012
	 
	 	 	 	 
	 

	 	Performance Criterion:
	 	the Company’s Efficiency Ratio calculated quarterly on a consolidated
basis and equal to the ratio of (1) total non-interest expense to (2) the sum of
interest income plus total non-interest income, as reported in the Company’s Selected
Financial Ratios
	 
	 	 	 	 
	 

	 	Performance Condition:
	 	The Company’s average quarterly Efficiency Ratio for the Measurement
Period must be less than or equal to 25%





Whether or not the Performance Conditions have been satisfied will be determined by the Committee
on or as soon as practicable following the last day of the Measurement Period. The Committee shall
adjust the Performance Conditions in such manner as it, in its discretion, may determine to be
necessary or appropriate to prevent material impact on the rights of holders of Performance Stock
Options from one or more of the following events, if such event(s) would impact the Performance
Conditions:





	 	•	 	the Company’s purchase or sale of any business entity during the
Measurement Period;
	 
	 	•	 	any cost fees or assessments imposed on the Company or a subsidiary by
governmental authorities pursuant to (a) changes in law rule, regulation or
policy adopted during the Measurement Period or (b) exercise of administrative
discretion announced during the Measurement Period; or
	 
	 	•	 	unforeseen or extraordinary circumstances (including but not limited to
increases in non-performing assets that to do not result in actual losses).