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                                                                    EXHIBIT 10.1

                          EMPLOYEE STOCK OWNERSHIP PLAN

                                       OF

                            HUDSON CITY SAVINGS BANK

                            ADOPTED ON MARCH 4, 1999
                         EFFECTIVE AS OF OCTOBER 1, 1998
                  INCORPORATING AMENDMENTS NO. 1, 2, 3, 4 AND 5

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                              TABLE OF CONTENTS

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                                         ARTICLE I

                                        DEFINITIONS
SECTION 1.1.   ACCOUNT ...........................................................     -1-
SECTION 1.2.   AFFILIATED EMPLOYER ...............................................     -1-
SECTION 1.3.   ALLOCATION COMPENSATION............................................     -1-
SECTION 1.4.   BANK...............................................................     -2-
SECTION 1.5.   BOARD .............................................................     -2-
SECTION 1.6.   BENEFICIARY .......................................................     -2-
SECTION 1.7.   BREAK IN SERVICE............... ...................................     -2-
SECTION 1.8.   CHANGE IN CONTROL .................................................     -2-
SECTION 1.9.   CODE ..............................................................     -2-
SECTION 1.10.  COMMITTEE .........................................................     -2-
SECTION 1.11.  DESIGNATED BENEFICIARY ............................................     -2-
SECTION 1.12.  DISABILITY ........................................................     -3-
SECTION 1.13.  DISCRETIONARY CONTRIBUTION ........................................     -3-
SECTION 1.14.  DOMESTIC RELATIONS ORDER ..........................................     -3-
SECTION 1.15.  ELIGIBILITY COMPUTATION PERIOD ....................................     -3-
SECTION 1.16.  EFFECTIVE .........................................................     -4-
SECTION 1.17.  ELIGIBLE EMPLOYEE..................................................     -4-
SECTION 1.18.  ELIGIBLE MEMBER....................................................     -4-
SECTION 1.19.  EMPLOYEE ..........................................................     -4-
SECTION 1.20.  EMPLOYMENT COMMENCEMENT DATE.......................................     -4-
SECTION 1.21.  EMPLOYMENT RECOMMENCEMENT DATE ....................................     -4-
SECTION 1.22.  ERISA..............................................................     -4-
SECTION 1.23.  EXCHANGE ACT ......................................................     -4-
SECTION 1.24.  FAIR MARKET VALUE .................................................     -4-
SECTION 1.25.  FINANCED SHARE ....................................................     -5-
SECTION 1.26.  FIVE PERCENT OWNER ................................................     -5-
SECTION 1.27.  FORFEITURES .......................................................     -5-
SECTION 1.28.  FORMER MEMBER .....................................................     -5-
SECTION 1.29.  GENERAL INVESTMENT ................................................     -5-
SECTION 1.30.  HIGHLY COMPENSATED EMPLOYEE .......................................     -5-
SECTION 1.31.  HOUR OF SERVICE ...................................................     -6-
SECTION 1.32.  INVESTMENT ACCOUNT.................................................     -6-
SECTION 1.33.  INVESTMENT FUND ...................................................     -6-
SECTION 1.34.  LOAN REPAYMENT ACCOUNT.............................................     -6-
SECTION 1.35.  LOAN REPAYMENT CONTRIBUTION .......................................     -6-
SECTION 1.36.  MATERNITY OR PATERNITY LEAVE.......................................     -6-
SECTION 1.37.  MEMBER.............................................................     -7-
SECTION 1.38.  MILITARY SERVICE...................................................     -7-
SECTION 1.39.  NAMED FIDUCIARY....................................................     -7-
SECTION 1.40.  OFFICER............................................................     -7-
SECTION 1.41.  ONE-YEAR BREAK IN SERVICE .........................................     -7-
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SECTION 1.42.  PARTICIPATING EMPLOYER.............................................     -7-
SECTION 1.43.  PERIOD OF SERVICE .................................................     -7-
SECTION 1.44.  PERIOD OF SEVERANCE................................................     -7-
SECTION 1.45.  PLAN...............................................................     -8-
SECTION 1.46.  PLAN ADMINISTRATOR.................................................     -8-
SECTION 1.47.  PLAN YEAR..........................................................     -8-
SECTION 1.48.  QUALIFIED DOMESTIC RELATIONS ORDER.................................     -8-
SECTION 1.49.  QUALIFIED MILITARY SERVICE.........................................     -8-
SECTION 1.50.  QUALIFIED PARTICIPANT..............................................     -8-
SECTION 1.51.  RETIREMENT.........................................................     -8-
SECTION 1.52.  RETROACTIVE CONTRIBUTION...........................................     -8-
SECTION 1.53.  SHARE..............................................................     -8-
SECTION 1.54.  SHARE ACQUISITION LOAN.............................................     -8-
SECTION 1.55.  SHARE INVESTMENT ACCOUNT...........................................     -8-
SECTION 1.56.  TENDER OFFER.......................................................     -9-
SECTION 1.57.  TOTAL COMPENSATION.................................................     -9-
SECTION 1.58.  TRUST..............................................................     -9-
SECTION 1.59.  TRUST AGREEMENT....................................................     -9-
SECTION 1.60.  TRUST FUND.........................................................     -9-
SECTION 1.61.  TRUSTEE............................................................     -9-
SECTION 1.62.  VALUATION DATE.....................................................     -9-
SECTION 1.63.  YEAR OF ELIGIBILITY SERVICE........................................     -9-
SECTION 1.64.  YEAR OF VESTING SERVICE............................................     -9-

                                        ARTICLE II

                                        MEMBERSHIP

SECTION 2.1.  ELIGIBILITY FOR MEMBERSHIP..........................................     -10-
SECTION 2.2.  COMMENCEMENT OF MEMBERSHIP..........................................     -10-
SECTION 2.3.  TERMINATION OF MEMBERSHIP...........................................     -11-
SECTION 2.4.  ADJUSTMENTS TO PERIOD OF SERVICE....................................     -11-

                                       ARTICLE III

                                    SPECIAL PROVISIONS

SECTION 3.1.  MILITARY SERVICE ...................................................     -12-
SECTION 3.2.  MATERNITY OR PATERNITY LEAVE .......................................     -12-
SECTION 3.3.  LEAVE OF ABSENCE ...................................................     -13-
SECTION 3.4.  TRANSFER BETWEEN FULL-TIME STATUS AND PART-TIME STATUS .............     -13-

                                        ARTICLE IV

                          CONTRIBUTIONS BY MEMBERS NOT PERMITTED

SECTION 4.1.  CONTRIBUTIONS BY MEMBERS NOT PERMITTED .............................     -14-
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                                         ARTICLE V

                               CONTRIBUTIONS BY THE EMPLOYER

SECTION 5.1.   IN GENERAL..........................................................    -15-
SECTION 5.2.   LOAN REPAYMENT CONTRIBUTIONS........................................    -15-
SECTION 5.3.   DISCRETIONARY CONTRIBUTIONS.........................................    -15-
SECTION 5.4.   RETROACTIVE CONTRIBUTIONS...........................................    -15-
SECTION 5.5.   TIME AND MANNER OF PAYMENT..........................................    -16-

                                        ARTICLE VI

                                  SHARE ACQUISITION LOANS

SECTION 6.1.   IN GENERAL .........................................................    -17-
SECTION 6.2.   COLLATERAL; LIABILITY FOR REPAYMENT ................................    -17-
SECTION 6.3.   LOAN REPAYMENT ACCOUNT .............................................    -18-
SECTION 6.4.   RELEASE OF FINANCED SHARES .........................................    -18-
SECTION 6.5.   RESTRICTIONS ON FINANCED SHARES ....................................    -19-

                                        ARTICLE VII

                                ALLOCATION OF CONTRIBUTIONS

SECTION 7.1.   ALLOCATION AMONG ELIGIBLE MEMBERS ..................................    -20-
SECTION 7.2.   ALLOCATION OF RELEASED SHARES OR OTHER PROPERTY ....................    -20-
SECTION 7.3.   ALLOCATION OF DISCRETIONARY CONTRIBUTIONS ..........................    -20-


                                       ARTICLE VIII

                                LIMITATIONS ON ALLOCATIONS

SECTION 8.1.   OPTIONAL LIMITATIONS ON ALLOCATIONS ................................    -21-
SECTION 8.2.   GENERAL LIMITATIONS ON CONTRIBUTIONS ...............................    -21-

                                        ARTICLE IX

                                          VESTING

SECTION 9.1.   VESTING ............................................................    -25-
SECTION 9.2.   VESTING ON DEATH, DISABILITY, RETIREMENT OR CHANGE IN CONTROL.......    -25-
SECTION 9.3.   FORFEITURES ON TERMINATION OF EMPLOYMENT............................    -25-
SECTION 9.4.   AMOUNTS CREDITED UPON RE-EMPLOYMENT ................................    -25-
SECTION 9.5.   ALLOCATION OF FORFEITURES ..........................................    -26-
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                                         ARTICLE X

                                      THE TRUST FUND
SECTION 10.1.   THE TRUST FUND ....................................................    -27-
SECTION 10.2.   INVESTMENTS .......................................................    -27-
SECTION 10.3.   DISTRIBUTIONS FOR DIVERSIFICATION OF INVESTMENTS ..................    -27-
SECTION 10.4.   USE OF COMMINGLED TRUST FUNDS .....................................    -28-
SECTION 10.5.   MANAGEMENT AND CONTROL OF ASSETS ..................................    -29-

                                        ARTICLE XI

                          VALUATION OF INTERESTS IN THE TRUST FUND

SECTION 11.1.   ESTABLISHMENT OF INVESTMENT ACCOUNTS ..............................    -30-
SECTION 11.3.   GENERAL INVESTMENT ACCOUNTS .......................................    -30-
SECTION 11.4.   VALUATION OF INVESTMENT ACCOUNTS ..................................    -30-
SECTION 11.5.   ANNUAL STATEMENTS .................................................    -31-

                                        ARTICLE XII

                                           SHARES

SECTION 12.1.   SPECIFIC ALLOCATION OF SHARES .....................................    -32-
SECTION 12.2.   DIVIDENDS .........................................................    -32-
SECTION 12.3.   VOTING RIGHTS .....................................................    -32-
SECTION 12.4.   TENDER OFFERS .....................................................    -34-

                                       ARTICLE XIII

                                    PAYMENT OF BENEFITS

SECTION 13.1.   IN GENERAL ........................................................    -36-
SECTION 13.2.   DESIGNATION OF BENEFICIARIES ......................................    -36-
SECTION 13.3.   DISTRIBUTIONS TO MEMBERS ..........................................    -37-
SECTION 13.4.   MANNER OF PAYMENT .................................................    -37-
SECTION 13.5.   MINIMUM REQUIRED DISTRIBUTIONS ....................................    -38-
SECTION 13.6.   DIRECT ROLLOVER OF ELIGIBLE ROLLOVER DISTRIBUTIONS ................    -39-
SECTION 13.7.   VALUATION OF SHARES UPON DISTRIBUTION .............................    -41-
SECTION 13.8.   PUT OPTIONS .......................................................    -41-
SECTION 13.9.   RIGHT OF FIRST REFUSAL ............................................    -41-
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                                       ARTICLE XIV

                                    CHANGE IN CONTROL

SECTION 14.1.  DEFINITION OF CHANGE IN CONTROL;
               PENDING CHANGE IN CONTROL..........................................     -43-
SECTION 14.2.  VESTING ON CHANGE OF CONTROL ......................................     -45-
SECTION 14.3.  REPAYMENT OF SHARE ACQUISITION LOAN ...............................     -45-
SECTION 14.4.  PLAN TERMINATION AFTER CHANGE IN CONTROL ..........................     -45-
SECTION 14.5.  AMENDMENT OF SECTION XIV ..........................................     -45-

                                        ARTICLE XV

                                      ADMINISTRATION

SECTION 15.1.  NAMED FIDUCIARIES .................................................     -46-
SECTION 15.2.  PLAN ADMINISTRATOR ................................................     -46-
SECTION 15.3.  COMMITTEE RESPONSIBILITIES ........................................     -47-
SECTION 15.4.  CLAIMS PROCEDURE ..................................................     -48-
SECTION 15.5.  CLAIMS REVIEW PROCEDURE ...........................................     -49-
SECTION 15.6.  ALLOCATION OF FIDUCIARY RESPONSIBILITIES AND
               EMPLOYMENT OF ADVISORS.............................................     -49-
SECTION 15.7.  OTHER ADMINISTRATIVE PROVISIONS ...................................     -50-

                                        ARTICLE XVI

                       AMENDMENT, TERMINATION AND TAX QUALIFICATION

SECTION 16.1.  AMENDMENT AND TERMINATION BY
               HUDSON CITY SAVINGS BANK...........................................     -51-
SECTION 16.2.  AMENDMENT OR TERMINATION OTHER THAN BY
               HUDSON CITY SAVINGS BANK...........................................     -51-
SECTION 16.3.  CONFORMITY TO INTERNAL REVENUE CODE ...............................     -51-
SECTION 16.4.  CONTINGENT NATURE OF CONTRIBUTIONS ................................     -52-

                                       ARTICLE XVII

                          SPECIAL RULES FOR TOP HEAVY PLAN YEARS

SECTION 17.1.  IN GENERAL ........................................................     -53-
SECTION 17.2.  DEFINITION OF TOP HEAVY PLAN ......................................     -53-
SECTION 17.3.  DETERMINATION DATE ................................................     -54-
SECTION 17.4.  CUMULATIVE ACCRUED BENEFITS .......................................     -54-
SECTION 17.5.  KEY EMPLOYEES .....................................................     -54-
SECTION 17.6.  REQUIRED AGGREGATION GROUP ........................................     -55-
SECTION 17.7.  PERMISSIBLE AGGREGATION GROUP .....................................     -56-
SECTION 17.8.  SPECIAL REQUIREMENTS DURING TOP HEAVY PLAN YEARS...................     -56-
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                                      ARTICLE XVIII

                                 MISCELLANEOUS PROVISIONS

SECTION 18.1.   GOVERNING LAW .....................................................    -57-
SECTION 18.2.   NO RIGHT TO CONTINUED EMPLOYMENT ..................................    -57-
SECTION 18.3.   CONSTRUCTION OF LANGUAGE ..........................................    -57-
SECTION 18.4.   HEADINGS ..........................................................    -57-
SECTION 18.5.   MERGER WITH OTHER PLANS ...........................................    -57-
SECTION 18.6.   NON-ALIENATION OF BENEFITS ........................................    -57-
SECTION 18.7.   PROCEDURES INVOLVING DOMESTIC RELATIONS ORDERS ....................    -58-
SECTION 18.8.   LEASED EMPLOYEES ..................................................    -59-
SECTION 18.9.   STATUS AS AN EMPLOYEE STOCK OWNERSHIP PLAN ........................    -59-
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                          EMPLOYEE STOCK OWNERSHIP PLAN

                                       OF

                            HUDSON CITY SAVINGS BANK

                                    ARTICLE I

                                   DEFINITIONS

                  The following definitions shall apply for the purposes of the
Plan, unless a different meaning is clearly indicated by the context:

                  SECTION 1.1. ACCOUNT means an account established for each
Member to which is allocated such Member's share, if any, of all Financed Shares
and other property that are released from the Loan Repayment Account in
accordance with section 6.4, together with his share, if any, of any
Discretionary Contributions that may be made by a Participating Employer.

                  SECTION 1.2. AFFILIATED EMPLOYER means the Bank; any
corporation which is a member of a controlled group of corporations (as defined
in section 414(b) of the Code) that includes the Bank; any trade or business
(whether or not incorporated) that is under common control (as defined in
section 414(c) of the Code) with the Bank; any organization (whether or not
incorporated) that is a member of an affiliated service group (as defined in
section 414(m) of the Code) that includes the Bank; any leasing organization (as
defined in section 414(n) of the Code) to the extent that any of its employees
are required pursuant to section 414(n) of the Code to be treated as employees
of the Bank; and any other entity that is required to be aggregated with the
Bank pursuant to regulations under section 414(o) of the Code.

                  SECTION 1.3. ALLOCATION COMPENSATION during any period means
the compensation taken into account in determining the allocation of benefits
and contributions among Eligible Members and consists of the aggregate base
compensation paid to an Employee by all Participating Employers during such
period, including the amount by which such Employee's compensation with respect
to such period has been reduced pursuant to a compensation reduction agreement
under the terms of any of the following plans which may be maintained by a
Participating Employer:

                  (a) a qualified cash or deferred arrangement described in
         section 401(k) of the Code;

                  (b) a salary reduction simplified employee pension plan
         described in section 408(k) of the Code;

                  (c) a tax deferred annuity plan described in section 403(b) of
         the Code;

                  (d) a cafeteria plan described in section 125 of the Code; or

                  (e) a qualified transportation fringe benefit program
         described in section 132(f) of the Code.

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and excluding overtime, bonuses, employer contributions (other than pursuant to
a compensation reduction agreement) to any public or private pension,
retirement, savings, welfare or other benefit plan benefits received under any
such plan, and any other special form of payment. In no event, however, shall an
Employee's Allocation Compensation for any Plan Year include any compensation in
excess of the limitation set forth in section 401(a)(17) of the Code. If there
are less than twelve (12) months in the Plan Year, the section 401(a)(17)
limitation shall be prorated by multiplying such limitation by a fraction, the
numerator of which is the number of months in the Plan Year and the denominator
of which is twelve (12).

                  SECTION 1.4. BANK means Hudson City Savings Bank and any
successor thereto.

                  SECTION 1.5. BOARD means the Board of Directors of Hudson City
Savings Bank.

                  SECTION 1.6. BENEFICIARY means the person or persons
designated by a Member or Former Member or other person entitled to a benefit
under the Plan, or otherwise determined to be entitled to a benefit under the
Plan. If more than one person is designated, each shall have an equal share
unless the person making the designation directed otherwise. The word "person"
includes an individual, a trust, an estate or any other person that is permitted
to be named as a Beneficiary.

                  SECTION 1.7. BREAK IN SERVICE means a Period of Severance of
at least 365 consecutive days.

                  SECTION 1.8. CHANGE IN CONTROL means an event described in
section 14.1.

                  SECTION 1.9. CODE means the Internal Revenue Code of 1986
(including the corresponding provisions of any succeeding law).

                  SECTION 1.10. COMMITTEE means the Employee Benefit Plans
Committee described in section 15.3.

                  SECTION 1.11. DESIGNATED BENEFICIARY means a natural person
designated by a Member or Former Member as a Beneficiary and shall not include
any Beneficiary designated by a person other than a Member or Former Member or
any Beneficiary other than a natural person. If a natural person is the
beneficiary of a trust which a Member or Former Member has named as his
Beneficiary, such natural person shall be treated as a Designated Beneficiary
if: (a) the trust is a valid trust under applicable state law (or would be a
valid trust except for the fact that it does not have a corpus); (b) the trust
is irrevocable or will, by its terms, become irrevocable upon the death of the
Member or Former Member; (c) the beneficiaries of the trust who are
beneficiaries with respect to the trust's interest as a Beneficiary are
identifiable from the terms of the trust instrument; and (d) the following
information is furnished to the Committee:

                  (i) by the Member or Former Member, if any distributions are
         required to be made pursuant to section 13.5 prior to the death of the
         Member or Former Member and (in the case of distributions after
         December 31, 2002 only) the Member's or Former Member's spouse is his
         sole primary Beneficiary, either: (A)

                                      -2-
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         a copy of the trust instrument, together with a written undertaking by
         the Member or Former Member to furnish to the Committee a copy of any
         subsequent amendment within a reasonable time after such amendment is
         made; or (B)(I) a list of all of the beneficiaries of the trust
         (including contingent and remainderman beneficiaries with a description
         of the conditions on their entitlement); (II) a certification of the
         Member or Former Member to the effect that, to the best of his
         knowledge, such list is correct and complete and that the conditions of
         section 1.11(a), (b) and (c) are satisfied; (III) a written undertaking
         to provide a new certification to the extent that an amendment changes
         any information previously certified; and (IV) a written undertaking to
         furnish a copy of the trust instrument to the Committee on demand; and

                  (ii) by the trustee of the trust within nine months after the
         death of the Member or Former Member (prior to January 1, 2003), or by
         October 31st of the first calendar year that begins after the death of
         the Member or Former Member (subsequent to December 31, 2002), if any
         distributions are required to be made pursuant to section 13.5 after
         the death of the Member or Former Member, either: (A) a copy of the
         actual trust instrument for the trust; or (B)(I) a final list of all of
         the beneficiaries of the trust (including contingent and remainderman
         beneficiaries with a description of the conditions on their
         entitlement) as of the date of death (prior to January 1, 2003) or as
         of September 30th of the first calendar year that begins after the date
         of death (subsequent to December 31, 2002); (II) a certification of the
         trustee to the effect that, to the best of his knowledge, such list is
         correct and complete and that the conditions of section 1.11(a), (b)
         and (c) are satisfied; and (III) a written undertaking to furnish a
         copy of the trust instrument to the Committee on demand.

                  SECTION 1.12. DISABILITY means a condition of total
incapacity, mental or physical, for further performance of duty with all
Participating Employers, which the Committee shall have determined, on the basis
of competent medical evidence, is likely to be permanent.

                  SECTION 1.13. DISCRETIONARY CONTRIBUTION means Shares or
amounts of money contributed to the Plan by the Participating Employers in
accordance with section 5.3.

                  SECTION 1.14. DOMESTIC RELATIONS ORDER means a judgment,
decree or order (including the approval of a property settlement) that is made
pursuant to a state domestic relations or community property law and relates to
the provision of child support, alimony payments, or marital property rights to
a spouse, child or other dependent of a Member or Former Member.

                  SECTION 1.15. ELIGIBILITY COMPUTATION PERIOD with respect to
any Employee means: (a) the 12-consecutive-month period beginning on such
Employee's Employment Commencement Date or Employment Recommencement Date; and
(b) each Plan year beginning after such Employee's Employment Commencement Date
or Employment Recommencement Date and before a Break in Service.

                  SECTION 1.16. EFFECTIVE DATE means October 1, 1998.

                  SECTION 1.17. ELIGIBLE EMPLOYEE means an Employee who is
eligible for membership in the Plan in accordance with Article II.

                                      -3-
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                  SECTION 1.18. ELIGIBLE MEMBER means, for any Plan Year, an
Employee who is a Member during all or any part of such Plan Year and either
remains a Member on the last day of such Plan Year or terminated membership
during such Plan Year on account of termination of employment due to death,
Disability or Retirement; provided, however, that no Employee shall be an
Eligible Member for the Plan Year that includes the effective date of the
transaction pursuant to which the Bank becomes a wholly owned subsidiary of
Hudson City Bancorp, Inc. if he terminates employment for any reason with all
Participating Employers prior to such effective date.

                  SECTION 1.19. EMPLOYEE means any person, including an officer,
who is employed by any Affiliated Employer.

                  SECTION 1.20. EMPLOYMENT COMMENCEMENT DATE means the date on
which a person first performs an Hour of Service, except that if an Employee
separates from service with all Affiliated Employers, incurs a Break in Service
and subsequently returns to service with any Affiliated Employer, his Employment
Commencement Date shall be the date on which he first performs an Hour of
Service following the Break in Service.

                  SECTION 1.21. EMPLOYMENT RECOMMENCEMENT Date means the date
upon which an Employee is first credited with an Hour of Service after a Break
in Service.

                  SECTION 1.22. ERISA means the Employee Retirement Income
Security Act of 1974, as amended from time to time (including the corresponding
provisions of any succeeding law).

                  SECTION 1.23. EXCHANGE ACT means the Securities Exchange Act
of 1934, as amended from time to time (including the corresponding provisions of
any succeeding law).

                  SECTION 1.24. FAIR MARKET VALUE on any date means:

                  (a) with respect to a Share:

                           (i) the final quoted sale price on the date in
                  question (or, if there is no reported sale on such date, on
                  the last preceding date on which any reported sale occurred)
                  as reported in the principal consolidated reporting system
                  with respect to securities listed or admitted to trading on
                  the principal United States securities exchange on which like
                  Shares are listed or admitted to trading; or

                           (ii) if like Shares are not listed or admitted to
                  trading on any such exchange, the closing bid quotation with
                  respect to a Share on such date on the National Association of
                  Securities Dealers Automated Quotation System, or, if no such
                  quotation is provided, on another similar system, selected by
                  the Committee, then in use; or

                           (iii) if sections 1.24(a)(i) and (ii) are not
                  applicable, the fair market value of a Share as determined by
                  an appraiser independent of the Employer and experienced and
                  expert in the field of corporate appraisal.

                                      -4-
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                  (b) with respect to property other than Shares, the fair
         market value determined in the manner determined by the Trustee.

                  SECTION 1.25. FINANCED SHARE means: (a) a Share that has been
purchased with the proceeds of a Share Acquisition Loan, that has been allocated
to the Loan Repayment Account in accordance with section 6.3 and that has not
been released in accordance with section 6.4; or (b) a Share that constitutes a
dividend paid with respect to a Share described in section 1.26(a), that has
been allocated to the Loan Repayment Account in accordance with section 6.3 and
that has not been released in accordance with section 6.4.

                  SECTION 1.26. FIVE PERCENT OWNER means, for any Plan Year, a
person who, during such Plan Year, owned (or was considered as owning for
purposes of section 318 of the Code): (a) more than 5% of the value of all
classes of outstanding stock of any Affiliated Employer; or (b) stock possessing
more than 5% of the combined voting power of all classes of outstanding stock of
any Affiliated Employer.

                  SECTION 1.27. FORFEITURES means the amounts forfeited by
Members and Former Members on termination of employment prior to full vesting,
pursuant to section 9.3, less amounts credited because of re-employment,
pursuant to section 9.4.

                  SECTION 1.28. FORMER MEMBER means a Member whose participation
in the Plan has terminated pursuant to section 2.3.

                  SECTION 1.29. GENERAL INVESTMENT Account means an Investment
Account established and maintained in accordance with Article XI.

                  SECTION 1.30. HIGHLY COMPENSATED EMPLOYEE means, for any Plan
Year, an Employee who:

                           (i) was a Five Percent Owner at any time during such
                  Plan Year or any prior Plan Year; or

                           (ii) received Total Compensation during the
                  immediately preceding Plan Year (A) in excess of $80,000 (or
                  such other amount as may be prescribed by the Secretary of the
                  Treasury pursuant to section 401(a)(17) of the Code); and (B)
                  if elected by the Plan Administrator in such form and manner
                  as the Secretary of the Treasury may prescribe, in excess of
                  the Total Compensation received for such preceding Plan Year
                  by at least 80% of the Employees.

The determination of who is a Highly Compensated Employee will be made in
accordance with section 414(q) of the Code and the regulations thereunder.

                  SECTION 1.31. HOUR OF SERVICE means each hour for which a
person is paid, or entitled to payment, for the performance of duties for any
Affiliated Employer, plus, solely for the purpose of computing the Years of
Eligibility Service of an Employee who is classified as a part-time Employee:

                                      -5-
<PAGE>

                  (a) each hour for which such person is paid, or entitled to
         payments by an Affiliated Employer on account of a period during which
         no duties are performed due to vacation, holiday, illness, incapacity
         (including disability), layoff, jury duty, military duty, or leave of
         absence. Hours under this section 1.31(a) shall be calculated and
         credited pursuant to section 2530.200b-2 of the Department of Labor's
         regulations (or any successor regulation), which are incorporated
         herein by reference; and

                  (b) each hour for which back pay, irrespective of mitigation
         of damages, is either awarded or agreed to by any Affiliated Employer;
         provided, however, that such hours have not previously been credited
         under other provisions of this section 1.31; and provided, further,
         that not more than 501 Hours of Service shall be credited under section
         1.31(a) to such person on account of a single continuous period during
         which such person performs no duties for an Affiliated Employer whether
         or not such period occurs in a single Plan Year. Hours under this
         section 1.31(b) shall be credited to the person for the Eligibility
         Computation Period or Eligibility Computation Periods to which the
         award or agreement pertains, rather than the Eligibility Computation
         Period in which the award, agreement or payment is made.

Anything in this section 1.31 to the contrary notwithstanding, no Hours of
Service shall be credited for a payment made or due under a plan maintained
solely for the purpose of complying with applicable workmen's compensation or
disability insurance laws, or a payment which solely reimburses any person for
medical or medically-related expenses incurred by such person.

                  SECTION 1.32. INVESTMENT ACCOUNT means either a General
Investment Account or a Share Investment Account.

                  SECTION 1.33. INVESTMENT FUND means any one of the three or
more funds as may be established from time to time by the Committee which,
together with any and all Shares and other investments held under the Plan,
constitute the Trust Fund.

                  SECTION 1.34. LOAN REPAYMENT ACCOUNT means an account
established and maintained in accordance with section 6.3.

                  SECTION 1.35. LOAN REPAYMENT CONTRIBUTION means amounts of
money contributed to the Plan by the Participating Employers in accordance with
section 5.2.

                  SECTION 1.36. MATERNITY OR PATERNITY LEAVE means a person's
absence from work for all Affiliated Employers: (a) by reason of the pregnancy
of such person; (b) by reason of the birth of a child of such person; (c) by
reason of the placement of a child with the person in connection with the
adoption of such child by such person; or (d) for purposes of caring for a child
of such person immediately following the birth of the child or the placement of
the child with such person.

                  SECTION 1.37. MEMBER means any person who has satisfied the
eligibility requirements set forth in section 2.1, who has become a Member in
accordance with section 2.2, and whose membership has not terminated under
section 2.3.

                                      -6-
<PAGE>

                  SECTION 1.38. MILITARY SERVICE means service in the armed
forces of the United States, including but not limited to Qualified Military
Service. It may also include, if and to the extent that the Board so provides
and if all Members and Former Members in like circumstances are similarly
treated, special service for the government of the United States and other
public service.

                  SECTION 1.39. NAMED FIDUCIARY means any person, committee,
corporation or organization as described in section 15.1.

                  SECTION 1.40. OFFICER means an Employee who is an
administrative executive in regular and continued service with any Affiliated
Employer; provided, however, that at no time shall more than the lesser of (a)
50 Employees or (b) the greater of (i) 3 Employees or (ii) 10% of all Employees
be treated as Officers. The determination of whether an Employee is to be
considered an Officer shall be made in accordance with section 416(i) of the
Code.

                  SECTION 1.41. ONE-YEAR BREAK IN SERVICE means an Eligibility
Computation Period during which an Employee fails to complete more than 500
Hours of Service.

                  SECTION 1.42. PARTICIPATING EMPLOYER means the Bank, and any
successor thereto and any other Affiliated Employer which, with the prior
written approval of the Board of Directors of Hudson City Savings Bank and
subject to such terms and conditions as may be imposed by the Board of Directors
of Hudson City Savings Bank, shall adopt this Plan.

                  SECTION 1.43. PERIOD OF SERVICE means a period of consecutive
days commencing on a person's Employment Commencement Date and ending on the
date a Period of Severance begins, with any adjustments required under section
2.4. Except as otherwise provided in the Plan, a Period of Service "of year(s)"
means the quotient of the Period of Service divided by 365, and any fractional
part of a year shall for such purposes be disregarded.

                  SECTION 1.44. PERIOD OF SEVERANCE means a period of
consecutive days commencing with the earlier of:

                  (a) the date on which a person terminates service with all
         Affiliated Employers by reason of resignation, retirement, discharge or
         death; or

                  (b) the first anniversary of the date on which a person
         terminates service with the Bank and all Affiliated Employers for any
         other reason, including layoff, disability, leave of absence or any
         other cessation of service not otherwise included as service under the
         Plan;

and ending on the first date following such separation from service on which
such person performs an Hour of Service.

                  SECTION 1.45. PLAN means the Employee Stock Ownership Plan of
Hudson City Savings Bank, as amended from time to time.

                                      -7-
<PAGE>

                  SECTION 1.46. PLAN ADMINISTRATOR means the Committee or any
person, committee, corporation or organization designated in section 15.2, or
appointed pursuant to section 15.2, to perform the responsibilities of that
office.

                  SECTION 1.47. PLAN YEAR means (a) for periods commencing on or
after October 1, 1998 and ending prior to October 1, 2002, the period commencing
on October 1 and ending on the next following September 30, (b) the period
commencing on October 1, 2002 and ending on December 31, 2002 and (c)
thereafter, the period commencing on January 1 and ending on the next following
December 31.

                  SECTION 1.48. QUALIFIED DOMESTIC RELATIONS ORDER means a
Domestic Relations Order that: (a) clearly specifies (i) the name and last known
mailing address of the Member or Former Member and of each person given rights
under such Domestic Relations Order, (ii) the amount or percentages of the
Member's or Former Member's benefits under this Plan to be paid to each person
covered by such Domestic Relations Order, (iii) the number of payments or the
period to which such Domestic Relations Order applies, and (iv) the name of this
Plan; and (b) does not require the payment of a benefit in a form or amount that
is (i) not otherwise provided for under the Plan, or (ii) inconsistent with a
previous Qualified Domestic Relations Order.

                  SECTION 1.49. QUALIFIED MILITARY SERVICE means with respect to
any person on any date, any service in the uniformed services of the United
States (as defined in chapter 43 of Title 38 of the United States Code)
completed prior to such date, but only if, on such date, such person is entitled
to re-employment rights with respect to an Affiliated Employer on account of
such service.

                  SECTION 1.50. QUALIFIED PARTICIPANT means a Member who has
attained age 55 and who has been a Member of the Plan for at least 10 years.

                  SECTION 1.51. RETIREMENT means: (a) any termination of
membership in the Plan at or after attainment of age 65; and (b) any retirement
under an applicable qualified defined benefit plan of the Employer as in effect
from time to time with entitlement to a normal or early (but not vested, whether
immediate or deferred) retirement allowance.

                  SECTION 1.52. RETROACTIVE CONTRIBUTION means a contribution
made on a retroactive basis in respect of a period of Qualified Military Service
in accordance with section 5.4.

                  SECTION 1.53. SHARE means a share of any class of stock issued
by any Affiliated Employer; provided that such share is a "qualifying employer
security" within the meaning of section 409(l) of the Code and section 407(d)(5)
of ERISA.

                  SECTION 1.54. SHARE ACQUISITION LOAN means a loan obtained by
the Trustee in accordance with Article VI.

                  SECTION 1.55. SHARE INVESTMENT ACCOUNT means an Investment
Account established and maintained in accordance with Article XI.

                                      -8-
<PAGE>

                  SECTION 1.56. TENDER OFFER means a tender offer made to
holders of any one or more classes of Shares generally, or any other offer made
to holders of any one or more classes of Shares generally to purchase, exchange,
redeem or otherwise transfer Shares, whether for cash or other consideration
whether or not such offer constitutes a tender offer or an exchange offer for
purposes of the Exchange Act.

                  SECTION 1.57. TOTAL COMPENSATION for any person during any
period means the total compensation paid to such person during such period by
all Affiliated Employers which is required to be reported to such person on a
written statement under section 6041(d), 6051(a)(3) and 6052 of the Code, plus
any elective deferrals (within the meaning of section 402(g) of the Code) under
any qualified cash or deferred arrangement described in section 401(k) of the
Code and maintained by any Affiliated Employer, any tax-deferred annuity
described in section 403(b) of the Code and maintained by any Affiliated
Employer, any salary reduction simplified employee pension plan described in
section 408(k) of the Code and maintained by any Affiliated Employer, any salary
reduction contributions under any cafeteria plan described in section 125 of the
Code and maintained by any Affiliated Employer, and any salary reduction
contributions under any qualified transportation filing benefits plan described
in section 132(f) of the Code and maintained by any Affiliated Employer. In no
event shall a person's Total Compensation for any Plan Year include any
compensation in excess the amount permitted under section 401(a)(17) of the
Code.

                  SECTION 1.58. TRUST means the legal relationship created by
the Trust Agreement pursuant to which the Trustee holds the Trust Fund in trust.

                  SECTION 1.59. TRUST AGREEMENT means the agreement between the
Bank and the Trustee therein named or its successors pursuant to which the Trust
Fund shall be held in trust.

                  SECTION 1.60. TRUST FUND means the corpus (consisting of
contributions paid over to the Trustee and investments thereof), and all
earnings, appreciation or additions thereof and thereto, held by the Trustee
under the Trust Agreement in accordance with the Plan, less any depreciation
thereof and any payments made therefrom pursuant to the Plan.

                  SECTION 1.61. TRUSTEE means the Trustee of the Trust Fund from
time to time in office. The Trustee shall serve as Trustee until it is removed
or resigns from office and is replaced by a successor Trustee appointed in
accordance with the terms of the Trust Agreement.

                  SECTION 1.62. VALUATION DATE means the last business day of
each Plan Year and such other dates as the Plan Administrator may prescribe.

                  SECTION 1.63. YEAR OF ELIGIBILITY SERVICE means (a) in the
case of an Employee classified as a full-time employee, a Period of Service of
one year, and (b) in all other cases, an Eligibility Computation Period during
which the Employee completed at least 1,000 Hours of Service.

                  SECTION 1.64. YEAR OF VESTING SERVICE means a Period of
Service of one year.

                                      -9-
<PAGE>

                                   ARTICLE II

                                   MEMBERSHIP

                  SECTION 2.1. ELIGIBILITY FOR MEMBERSHIP.

                  (a) Only Eligible Employees may be or become Members of the
Plan. An Employee shall be an Eligible Employee if he (i) is employed by one or
more Participating Employers; (ii) is compensated primarily on a salaried basis
or hourly wage basis; (iii) has attained age 21; (iv) has completed at least one
Year of Eligibility Service; and (v) is not excluded under section 2.1(b).

                  (b) An Employee is not an Eligible Employee if he:

                  (ii) does not receive Allocation Compensation from at least
         one Participating Employer;

                  (iii) is an Employee who has waived any claim to participation
         in the Plan;

                  (iv) is an Employee or in a unit of Employees covered by a
         collective bargaining agreement with the Employer where retirement
         benefits were the subject of good faith bargaining, unless such
         agreement expressly provides that Employees such as he be covered under
         the Plan;

                  (v) is a "leased employee" as defined in section 18.8(a);

                  (vi) is compensated primarily on a daily, commission, fee or
         retainer basis;

                  (vii) is a building service Employee who is regularly required
         to spend more than 50% of his working time servicing real estate other
         than the offices of Affiliated Employers;

                  (viii) is classified as an "independant contractor" by the
         Employer, even if considered an employee under applicable law; or

                  (ix) is a mortgage field originator.

                  SECTION 2.2. COMMENCEMENT OF MEMBERSHIP.

                  Every Employee who is an Eligible Employee on the effective
date of the transaction whereby the Bank becomes a wholly owned subsidiary of
Hudson City Bancorp, Inc. shall automatically become a Member as of the
Effective Date. An Employee who becomes an Eligible Employee after the Effective
Date shall automatically become a Participant on the first day of the calendar
month coincident with or next following the date on which he becomes an Eligible
Employee.

                                      -10-
<PAGE>

                  SECTION 2.3. TERMINATION OF MEMBERSHIP.

                  Membership in the Plan shall cease, and a Member shall become
a Former Member, upon termination of employment with all Participating
Employers, death, Disability or Retirement, failure to return to work upon the
expiration of a leave of absence granted pursuant to section 3.3, becoming an
Employee who is excluded under section 2.1(b) or distribution of the entire
vested interest in his Account.

                  SECTION 2.4. ADJUSTMENTS TO PERIOD OF SERVICE.

                  (a) The Period of Service of an Employee shall include any
period during which the Employee is separated from the service of all Affiliated
Employers if such period is less than 365 consecutive days measured from the
date on which such Employee terminates service and ending with the first date
following such termination for which the Employee is credited with an Hour of
Service.

                  (b) The Period of Service of an Employee who returns to the
service of the Bank or any Affiliated Employer following a separation from
service shall commence with the first date following such separation from
service for which the Employee is credited with an Hour of Service. The Employee
shall be given credit for any Period of Service prior to such separation.

                  (c) The Period of Service of an Employee who is absent on
Maternity or Paternity Leave shall exclude any period of such absence that
occurs after the first anniversary of the commencement of such absence except to
the extent that such period constitutes an approved leave of absence under
section 3.3.

                  (d) An Employee's Period of Service shall also be adjusted to
the extent required by the Family and Medical Leave Act or any regulations
promulgated thereunder.

                  (e) Each Employee's Period of Service shall take into account
periods of employment with any Affiliated Employer prior to the Effective Date.

                  (f) Each Employee's Period of Service shall exclude periods of
employment prior to the attainment of age 18.

                                      -11-
<PAGE>

                                   ARTICLE III

                               SPECIAL PROVISIONS

                  SECTION 3.1. MILITARY SERVICE.

                  In the case of a termination of employment of any Employee to
enter directly into Military Service, the entire period of his absence shall be
treated, for purposes of vesting and eligibility for membership (but not, except
as required by law, for purposes of eligibility to share in allocations of
contributions in accordance with Article VII), as if he had continued employment
during the period of his absence. In the event of the re-employment of such
person by any Affiliated Employer within a period of not more than six months:

                  (a) after he becomes entitled to release or discharge, if he
         has entered into the uniformed services of the United States;

                  (b) release from hospitalization continuing after discharge
         from the uniformed services of the United States for a period of not
         more than one year; or

                  (c) after such service terminates, if he has entered into
         other service defined as Military Service;

such period, also, shall be deemed to be Military Service.

                  SECTION 3.2. MATERNITY OR PATERNITY LEAVE.

                  (a) Subject to this section 3.2, in the event of an Employee's
absence from work in the service of all Affiliated Employers for a period in
excess of one year that commences on or after October 1, 1985 and that
constitutes Maternity or Paternity Leave for which the person is not paid or
entitled to payment by the Employer or any Affiliated Employer then solely for
purposes of determining when a Break in Service has occurred or when a Period of
Severance of five years has occurred, the period of such an absence commencing
on the first anniversary of such absence and ending on the second anniversary of
the commencement of such absence (or, if earlier, on the last day of such
absence) shall not be treated as a Period of Severance. In addition, solely for
purposes of determining whether a One-Year Break in Service has occurred, the
Employee shall be credited for the period of absence with the number of Hours of
Service equal to the lesser of:

                  (a) (i) the number of Hours of Service that would have been
         credited to the Employee if he had continued working for an Affiliated
         Employer during the period of such absence, or (ii) if the number of
         Hours of Service prescribed under section 3.2(a)(i) cannot be
         determined, 8 Hours of Service for each working day during the period
         of absence, or

                  (b) 501 Hours of Service.

                                      -12-
<PAGE>

Such credit shall be given during the Eligibility Computation Period in which
such absence began, if necessary to prevent a One-Year Break in Service from
occurring during such Eligibility Computation Period, and in all other cases,
such credit shall be given during the immediately following Eligibility
Computation Period.

                  (c) Notwithstanding anything in the Plan to the contrary, this
section 3.2 shall not apply unless the person furnishes to the Plan
Administrator such information as the Plan Administrator may reasonably require
in order to establish: (i) that the person's absence is one described in section
3.2(a); (ii) the number of working days during such absence and (iii) the number
of Hours of Service ordinarily credited on each such working day.

                  SECTION 3.3. LEAVE OF ABSENCE.

                  In the event of temporary absence from work in the service of
all Affiliated Employers for any period of two years or less for which an
Employee shall have been granted a leave of absence by a Participating Employer,
the entire period of his absence shall be treated for purposes of vesting and
eligibility for membership (but not for purposes of eligibility to share in the
allocation of contributions in accordance with Article VII), as if he had
continued employment during the period of his absence. Absence from work for a
period greater than, or failure to return to work upon the expiration of, the
period of leave of absence granted by the Employer shall terminate membership in
the Plan as of the date on which such period ended. In granting leaves of
absence for purposes of the Plan, all Employees in like circumstances shall be
similarly treated.

                  SECTION 3.4. TRANSFER BETWEEN FULL-TIME STATUS AND PART-TIME
                               STATUS.

                  (a) In the event an Employee who is classified as a part-time
Employee is reclassified as a full-time Employee, his years of Eligibility
Service shall include (i) his Years of Eligibility Service determined as of the
last day of the last Eligibility Computation Period to end before the date of
the reclassification; plus (ii) if he completes at least 1,000 Hours of Service
during the Eligibility Period in which the reclassification occurs, one Year of
Eligibility Service for such Eligibility Computation Period and if he does not
complete at least 1,000 Hours of Service during such Eligibility Computation
Period, his Period of Service completed during such Eligibility Computation
Period; plus (iii) his Period of Service completed following the last day of the
Eligibility Computation Period in which the reclassification occurs.

                  (b) In the event an Employee who is classified as a full-time
Employee is reclassified as a part-time Employee, his Years of Eligibility
Service shall include (i) his Period of Service determined as of the last day of
the last Eligibility Computation Period to end before the date of the
reclassification; plus (ii) if he completes at least 1,000 Hours of Service
during the Eligibility Computation Period in which the reclassification occurs,
one Year of Eligibility Service for such Eligibility Computation Period and if
he does not complete at least 1,000 Hours of Service during such Eligibility
Computation Period, his Period of Service completed during such Eligibility
Computation Period; plus (c) his Years of Eligibility Service completed
following the last day of the Eligibility Computation Period in which the
reclassification occurs.

                                      -13-
<PAGE>

                                   ARTICLE IV

                     CONTRIBUTIONS BY MEMBERS NOT PERMITTED

                  SECTION 4.1. CONTRIBUTIONS BY MEMBERS NOT PERMITTED.

                  Members shall not be required, nor shall they be permitted, to
make contributions to the Plan.

                                      -14-
<PAGE>

                                    ARTICLE V

                          CONTRIBUTIONS BY THE EMPLOYER

                  SECTION 5.1. IN GENERAL.

                  Subject to the limitations of Article VIII, for each Plan
Year, the Participating Employers shall contribute to the Plan the amount, if
any, determined by the Board of Directors of Hudson City Savings Bank, but in no
event less than the amount described in section 5.2(a). The amount contributed
for any Plan Year shall be treated as a Loan Repayment Contribution, a
Discretionary Contribution, or a combination thereof, in accordance with the
provisions of this Article V.

                  SECTION 5.2. LOAN REPAYMENT CONTRIBUTIONS.

                  For each Plan Year, a portion of the Participating Employers'
contributions, if any, to the Plan equal to the sum of:

                  (a) the minimum amount required to be added to the Loan
         Repayment Account in order to provide adequate funds for the payment of
         the principal and interest then required to be repaid under the terms
         of any outstanding Share Acquisition Loan obtained by the Trustee; plus

                  (b) the additional amount, if any, designated by the Committee
         to be applied to the prepayment of principal or interest under the
         terms of any outstanding Share Acquisition Loan obtained by the
         Trustee;

shall be treated as a Loan Repayment Contribution for such Plan Year. A Loan
Repayment Contribution for a Plan Year shall be allocated to the Loan Repayment
Account and shall be applied by the Trustee, in the manner directed by the
Committee, to the payment of accrued interest and to the reduction of the
principal balance of any Share Acquisition Loan obtained by the Trustee that is
outstanding on the date on which the Loan Repayment Contribution is made. To the
extent that a Loan Repayment Contribution for a Plan Year results in a release
of Financed Shares in accordance with section 6.4, such Shares shall be
allocated among the Accounts of Eligible Members for such Plan Year in
accordance with section 7.2.

                  SECTION 5.3. DISCRETIONARY CONTRIBUTIONS.

                  In the event that the amount of the Participating Employers'
contributions to the Plan for a Plan Year exceeds the amount of the Loan
Repayment Contributions for such Plan Year, such excess shall be treated as a
Discretionary Contribution and shall be allocated among the Accounts of the
Eligible Members for such Plan Year in accordance with section 7.3.

                  SECTION 5.4. RETROACTIVE CONTRIBUTIONS.

                  A Participating Employer shall make a Retroactive Contribution
in respect of any individual previously employed by it who is re-employed by any
Affiliated Employer after December

                                      -15-
<PAGE>

12, 1994 following the completion of a period of Qualified Military Service.
Such Retroactive Contribution shall be made in the following manner for each
Plan Year that includes any part of the period of Qualified Military Service:

                  (a) An allocation percentage shall be computed by dividing (i)
         the sum of the Fair Market Value of all Financed Shares allocated to
         Eligible Members for such Plan Year plus the dollar amount of all
         Discretionary Contributions made in cash for such Plan Year plus the
         Fair Market Value of all Discretionary Contributions made in Shares for
         such Plan Year, divided by (ii) the aggregate amount of Allocation
         Compensation used in the allocation for such Plan Year. Fair Market
         Value for such purposes shall be determined as of the last day of the
         Plan Year.

                  (b) A notional allocation shall be determined by multiplying
         (A) the percentage determined under section 5.4(a) by (B) the
         Allocation Compensation which the individual would have had for such
         Plan Year if he had remained in the service of his Participating
         Employer in the same capacity and earning Allocation Compensation and
         Total Compensation at the annual rates in effect immediately prior to
         the commencement of the Qualified Military Leave (or, if such rates are
         not reasonably certain, at an annual rate equal to the actual
         Allocation Compensation and Total Compensation, respectively, paid to
         him for the 12-month period immediately preceding the Qualified
         Military Service).

                  (c) An actual Retroactive Contribution for the Plan Year shall
         be determined by computing the excess of (A) the notional allocation
         determined under section 5.4(b) over (B) the sum of the dollar amount
         of any Discretionary Contribution in cash, the Fair Market Value of any
         Discretionary Contribution in Shares and the Fair Market Value of any
         Financed Shares actually allocated to such individual for such Plan
         Year.

                  SECTION 5.5. TIME AND MANNER OF PAYMENT.

                  (a) Payment of contributions made pursuant to this Article V
shall be made: (i) in cash, in the case of a Loan Repayment Contribution; and
(ii) in cash, in Shares or in a combination of cash and Shares, in the case of a
Discretionary Contribution or a Retroactive Contribution.

                  (b) Contributions made pursuant to this Article V for a Plan
Year shall be paid to the Trust Fund on or before the due date (including any
extensions thereof) of the Employer's federal income tax return for its taxable
year during which such Plan Year ends. All such contributions shall be allocated
to the Accounts of the Eligible Members in the case of a Discretionary
Contribution, to the Account of the Member for whom it is made in the case of a
Retroactive Contribution, and to the Loan Repayment Account in the case of a
Loan Repayment Contribution, as soon as is practicable following the payment
thereof to the Trust Fund.

                                      -16-
<PAGE>

                                   ARTICLE VI

                             SHARE ACQUISITION LOANS

                  SECTION 6.1. IN GENERAL.

                  The Committee may, with the prior approval of the Board of
Directors of Hudson City Savings Bank, direct the Trustee to obtain a Share
Acquisition Loan on behalf of the Plan, the proceeds of which shall be applied
on the earliest practicable date:

                  (a) to purchase Shares; or

                  (b) to make payments of principal or interest, or a
         combination of principal and interest, with respect to such Share
         Acquisition Loan; or

                  (c) to make payments of principal and interest, or a
         combination of principal and interest, with respect to a previously
         obtained Share Acquisition Loan that is then outstanding.

Any such Share Acquisition Loan shall be obtained on such terms and conditions
as the Committee may approve; provided, however, that such terms and conditions
shall provide for the payment of interest at no more than a reasonable rate and
shall permit such Share Acquisition Loan to satisfy the requirements of section
4975(d)(3) of the Code and section 408(b)(3) of ERISA.

                  SECTION 6.2. COLLATERAL; LIABILITY FOR REPAYMENT.

                  (a) The Committee may direct the Trustee to pledge, at the
         time a Share Acquisition Loan is obtained, the following assets of the
         Plan as collateral for such Share Acquisition Loan:

                  (i) any Shares purchased with the proceeds of such Share
         Acquisition Loan and any earnings attributable thereto;

                  (ii) any Financed Shares then pledged as collateral for a
         prior Share Acquisition Loan which is repaid with the proceeds of such
         Share Acquisition Loan and any earnings attributable thereto; and

                  (iii) pending the application thereof to purchase Shares or
         repay a prior Share Acquisition Loan, the proceeds of such Share
         Acquisition Loan and any earnings attributable thereto.

Except as specifically provided in this section 6.2(a), no assets of the Plan
shall be pledged as collateral for the repayment of any Share Acquisition Loan.

                  (b) No person entitled to payment under a Share Acquisition
Loan shall have any right to the assets of the Plan except for:

                                      -17-
<PAGE>

                  (i) Financed Shares that have been pledged as collateral for
         such Share Acquisition Loan pursuant to section 6.2(a);

                  (ii) Loan Repayment Contributions made pursuant to section
         5.2; and

                  (iii) earnings attributable to Financed Shares described in
         section 6.2(b)(i) and to Loan Repayment Contributions described in
         section 6.2(b)(ii).

Except in the event of a default or a refinancing pursuant to which an existing
Share Acquisition Loan is repaid or as provided in section 14.3, the aggregate
amount of all payments of principal and interest made by the Trustee with
respect to all Share Acquisition Loans obtained on behalf of the Plan shall at
no time exceed the aggregate amount of all Loan Repayment Contributions
theretofore made plus the aggregate amount of all earnings (other than dividends
paid in the form of Shares) attributable to Financed Shares and to such Loan
Repayment Contributions.

                  (c) Any Share Acquisition Loan shall be without recourse
against the Plan and Trust.

                  SECTION 6.3. LOAN REPAYMENT ACCOUNT.

                  In the event that one or more Share Acquisition Loans shall be
obtained, a Loan Repayment Account shall be established under the Plan. The Loan
Repayment Account shall be credited with all Shares acquired with the proceeds
of a Share Acquisition Loan, all Loan Repayment Contributions and all earnings
(including dividends paid in the form of Shares) or appreciation attributable to
such Shares and Loan Repayment Contributions. The Loan Repayment Account shall
be charged with all payments of principal and interest made by the Trustee with
respect to any Share Acquisition Loan, all Shares released in accordance with
section 6.4 and all losses, depreciation or expenses attributable to Shares or
to other property credited thereto. The Financed Shares, as well as any earnings
thereon, shall be allocated to such Loan Repayment Account and shall be
accounted for separately from all other amounts or property contributed under
the Plan.

                  SECTION 6.4. RELEASE OF FINANCED SHARES.

                  As of the last day of each Plan Year during which a Share
Acquisition Loan is outstanding, a portion of the Financed Shares purchased with
the proceeds of such Share Acquisition Loan and allocated to the Loan Repayment
Account shall be released. The number of Financed Shares released in any such
Plan Year shall be equal to the amount determined according to one of the
following methods:

                  (a) by computing the product of: (i) the number of Financed
         Shares purchased with the proceeds of such Share Acquisition Loan and
         allocated to the Loan Repayment Account immediately before the release
         is effected; multiplied by (ii) a fraction, the numerator of which is
         the aggregate amount of the principal and interest payments (other than
         payments made upon the refinancing of a Share Acquisition Loan as
         contemplated by section 6.1(c)) made with respect to such Share

                                      -18-
<PAGE>

         Acquisition Loan during such Plan Year, and the denominator of which is
         the aggregate amount of all principal and interest remaining to be paid
         with respect to such Share Acquisition Loan as of the first day of such
         Plan Year; or

                  (b) by computing the product of: (i) the number of Financed
         Shares purchased with the proceeds of such Share Acquisition Loan and
         allocated to the Loan Repayment Account immediately before the release
         is effected; multiplied by (ii) a fraction, the numerator of which is
         the aggregate amount of the principal payments (other than payments
         made upon the refinancing of a Share Acquisition Loan as contemplated
         by section 6.1(c)) made with respect to such Share Acquisition Loan
         during such Plan Year, and the denominator of which is the aggregate
         amount of all of principal remaining to be paid with respect to such
         Share Acquisition Loan as of the first day of such Plan Year; provided,
         however, that the method described in this section 6.4(b) may be used
         only if the Share Acquisition Loan does not extend for a period in
         excess of 10 years after the date of origination and only to the extent
         that principal payments on such Share Acquisition Loan are made at
         least as rapidly as under a loan of like principal amount with a like
         interest rate and term requiring level amortization of principal and
         interest.

The method to be used shall be specified in the documents governing the Share
Acquisition Loan or, if not specified therein, prescribed by the Committee, in
its discretion. In the event that property other than, or in addition to,
Financed Shares shall be held in the Loan Repayment Account and pledged as
collateral for a Share Acquisition Loan, then the property to be released
pursuant to this section 6.4 shall be property having a Fair Market Value
determined by applying the method to be used to the Fair Market Value of all
property pledged as collateral for such Share Acquisition Loan; provided,
however, that no property other than Financed Shares shall be released pursuant
to this section 6.4 unless all Financed Shares have previously been released.

                  SECTION 6.5. RESTRICTIONS ON FINANCED SHARES.

                  Except to the extent required under any applicable law, rule
or regulation, no Shares purchased with the proceeds of a Share Acquisition Loan
shall be subject to a put, call or other option, or to any buy-sell or similar
arrangement, while held by the Trustee or when distributed from the Plan. The
provisions of this section 6.5 shall continue to apply in the event that this
Plan shall cease to be an employee stock ownership plan, within the meaning of
section 4975(e)(7) of the Code.

                                      -19-
<PAGE>

                                   ARTICLE VII

                           ALLOCATION OF CONTRIBUTIONS

                  SECTION 7.1. ALLOCATION AMONG ELIGIBLE MEMBERS.

                  Subject to the limitations of Article VIII, Discretionary
Contributions for a Plan Year made in accordance with section 5.3 and Financed
Shares and other property that are released from the Loan Repayment Account for
a Plan Year in accordance with section 6.4 shall be allocated among the Eligible
Members for such Plan Year, in the manner provided in this Article VII.

                  SECTION 7.2. ALLOCATION OF RELEASED SHARES OR OTHER PROPERTY.

                  Subject to the limitations of Article VIII, in the event that
Financed Shares or other property are released from the Loan Repayment Account
for a Plan Year in accordance with section 6.4, such released Shares or other
property shall be allocated among the Accounts of the Eligible Members in the
proportion that each such Eligible Member's Allocation Compensation (for the
portion of the Plan Year during which he was a Member) for the Plan Year in
which such release occurs bears to the aggregate of such Allocation Compensation
of all Eligible Members (during the portion of the Plan Year during which they
were Members) for the Plan Year. Such allocation shall be made as of the last
day of the Plan Year in which such release occurs.

                  SECTION 7.3. ALLOCATION OF DISCRETIONARY CONTRIBUTIONS.

                  Subject to the limitations of Article VIII, in the event that
Participating Employers make Discretionary Contributions for a Plan Year, such
Discretionary Contribution shall be allocated among the Accounts of the Eligible
Members for such Plan Year in the proportion that each such Eligible Member's
Allocation Compensation (for the portion of such year during which he was a
Member) for the Plan Year in which the Discretionary Contribution is made bears
to the aggregate of such Allocation Compensation of all Eligible Members (during
the portion of the Plan Year during which they were Members) for such Plan Year
in which the Discretionary Contribution is made. Such allocation shall be made
as of the last day of the Plan Year in which such Discretionary Contribution is
made.

                                      -20-
<PAGE>

                                  ARTICLE VIII

                           LIMITATIONS ON ALLOCATIONS

                  SECTION 8.1. OPTIONAL LIMITATIONS ON ALLOCATIONS.

                  If, for any Plan Year, the application of sections 7.2 and 7.3
would result in more than one-third of the number of Shares or of the amount of
money or property to be allocated thereunder being allocated to the Accounts of
Eligible Members for such Plan Year who are also Highly Compensated Employees
for such Plan Year, then the Committee may, but shall not be required to, direct
that this section 8.1 shall apply in lieu of sections 7.2 and 7.3. If the
Committee gives such a direction, then the Committee shall impose a maximum
dollar limitation on the amount of Allocation Compensation that may be taken
into account for each Eligible Member. The dollar limitation which shall be
imposed shall be the limitation which produces the result that the aggregate
Allocation Compensation taken into account for Eligible Member who are Highly
Compensated Employees, constitutes exactly one-third of the aggregate Allocation
Compensation taken into account for all Eligible Members.

                  SECTION 8.2. GENERAL LIMITATIONS ON CONTRIBUTIONS.

                  (a) No amount shall be allocated to a Member's Account under
this Plan for any Limitation Year to the extent that such an allocation would
result in an Annual Addition of an amount greater than the lesser of (i) $30,000
(or such other amount as is permissible under section 415(c)(1)(A) of the Code),
or (ii) 25% of the Member's Total Compensation for such Limitation Year.

                  (b) In the case of a Member who may be entitled to benefits
under any qualified defined benefit plan (whether or not terminated) now in
effect or ever maintained by the Employer, such Member's Annual Additions under
this Plan shall, in addition to the limitations provided under section 8.2(a),
be further limited so that the sum of the Member's Defined Contribution Plan
Fraction plus his Defined Benefit Plan Fraction does not exceed 1.0 for any
Limitation Year beginning prior to January 1, 2000; provided, however, that this
limitation shall only apply if and to the extent that the benefits under the
Employer's qualified defined benefit plan or any other qualified defined
contribution plan of the Employer are not limited so that such sum is not
exceeded.

                  (c) For purposes of this section 8.2, the following special
definitions shall apply:

                           (i) Annual Addition means the sum of the following
                  amounts allocated on behalf of a Member for a Limitation Year:

                                    (A) all contributions by the Employer
                           (including contributions made under a salary
                           reduction agreement pursuant to sections 401(k),
                           408(k) or 403(b) of the Code) under any qualified
                           defined contribution plan (other than this Plan)
                           maintained by the Employer, as well as the Member's
                           allocable share, if any, of any forfeitures under
                           such plans; plus

                                      -21-
<PAGE>

                                    (B) (I) for Limitation Years that begin
                           prior to January 1, 1987, the lesser of (1) one-half
                           of all nondeductible voluntary contributions under
                           any other qualified defined contribution plan
                           (whether or not terminated) maintained by the
                           Employer, or (2) the amount of the nondeductible
                           voluntary contributions under qualified defined
                           contribution plan (whether or not terminated)
                           maintained by the Employer in excess of 6% of such
                           Member's Total Compensation; and (II) for Limitation
                           Years that begin after December 31, 1986, the sum of
                           all of the nondeductible voluntary contributions
                           under any other qualified defined contribution plan
                           (whether or not terminated) maintained by the
                           Employer;

                                    (C) all Discretionary Contributions under
                           this Plan;

                                    (D) except as hereinafter provided in this
                           section 8.2(c)(i), a portion of the Employer's Loan
                           Repayment Contributions to the Plan for such
                           Limitation Year which bears the same proportion to
                           the total amount of the Employer's Loan Repayment
                           Contributions for the Limitation Year that the number
                           of Shares (or the Fair Market Value of property other
                           than Shares) allocated to the Member's Account
                           pursuant to section 7.2 or 8.1, whichever is
                           applicable, bears to the aggregate number of Shares
                           (or Fair Market Value of property other than Shares)
                           so allocated to all Members for such Limitation Year;
                           plus

                                    (E) amounts allocated after March 31, 1984
                           to an individual medical account (within the meaning
                           of section 415(1) of the Code) which is part of a
                           pension or annuity plan maintained by the Employer
                           and amounts derived from contributions paid or
                           accrued after, and in a taxable year ending after,
                           December 31, 1985 which are attributable to
                           post-retirement medical benefits and allocated to a
                           separate account of a key employee (within the
                           meaning of section 419A(d)(3) of the Code) under a
                           welfare benefit fund (within the meaning of section
                           419(e) of the Code).

                  Notwithstanding section 8.2(c)(i)(D), if, for any Limitation
                  Year, the aggregate amount of Discretionary Contributions
                  allocated to the Accounts of the individuals who are Highly
                  Compensated Employees for such Limitation Year, when added to
                  such Highly Compensated Employees' allocable share of any Loan
                  Repayment Contributions for such Limitation Year, does not
                  exceed one-third of the total of all Discretionary
                  Contributions and Loan Repayment Contributions for such
                  Limitation Year, then that portion, if any, of the Loan
                  Repayment Contributions for such Limitation Year that is
                  applied to the payment of interest on a Share Acquisition Loan
                  shall not be included as an Annual Addition. In no event shall
                  any Financed Shares, any dividends or other earnings thereon,
                  any proceeds of the sale thereof or any portion of the value
                  of the foregoing be included as an Annual Addition.

                           (ii) Employer means Hudson City Savings Bank, and all
                  members of a controlled group of corporations, as defined in
                  section 414(b) of the Code, as modified by section 415(h) of
                  the Code, all commonly controlled trades or

                                      -22-
<PAGE>

                  businesses, as defined in section 414(c) of the Code, as
                  modified by section 415(h) of the Code, all affiliated service
                  groups, as defined in section 414(m) of the Code, of which
                  Hudson City Savings Bank is a member, as well as any leasing
                  organization, as defined in section 18.8, that employs any
                  person who is considered an employee under section 18.8 and
                  any other entity that is required to be aggregated with the
                  Employer pursuant to regulations under section 414(o) of the
                  Code.

                           (iii) Defined Benefit Plan Fraction means, for any
                  individual for any Limitation Year, a fraction, the numerator
                  of which is the Projected Annual Benefit (determined as of the
                  end of such Limitation Year) of the Member under any qualified
                  defined benefit plans (whether or not terminated) maintained
                  by the Employer for the current and all prior Limitation
                  Years, and the denominator of which is as follows: (A) for
                  Limitation Years ending prior to January 1, 1983, the lesser
                  of (I) the dollar limitation in effect under section 415(b)(1)
                  (A) of the Code for such Limitation Year, or (II) the amount
                  which may be taken into account under section 415(b)(1)(B) of
                  the Code with respect to such Member for such Limitation Year;
                  and (B) in all other cases, the lesser of (I) (except as
                  provided in section 16.8(b) for a Top Heavy Plan Year) the
                  product of 1.25 multiplied by the dollar limitation in effect
                  under section 415(b)(1)(A) of the Code for such Limitation
                  Year, or (II) the product of 1.4 multiplied by the amount
                  which may be taken into account under section 415(b)(1)(B) of
                  the Code with respect to such Member for such Limitation Year.

                           (iv) Defined Contribution Plan Fraction means, for
                  any individual for any Limitation Year, a fraction (A) the
                  numerator of which is the sum of such individual's Annual
                  Additions (determined as of the end of such Limitation Year)
                  under this Plan and any other qualified defined contribution
                  plans (whether or not terminated) maintained by the Employer
                  for the current and all prior Limitation Years, and (B) the
                  denominator of which is as follows: (I) for Limitation Years
                  ending prior to January 1, 1983, the sum of the lesser of the
                  following amounts for such Limitation Year and for each prior
                  Limitation Year during which such individual was employed by
                  the Employer: (1) the Maximum Permissible Amount for such
                  Limitation Year (without regard to section 415(c)(6) of the
                  Code), or (2) the amount which may be taken into account under
                  section 415(c)(1)(B) of the Code with respect to such
                  individual for such Limitation Year; and (II) in all other
                  cases, the sum of the lesser of the following amounts for such
                  Limitation Year and for each prior Limitation Year during
                  which such individual was employed by the Employer: (1)
                  (except as provided in section 17.8(b) for a Top Heavy Plan
                  Year) the product of 1.25 multiplied by the Maximum
                  Permissible Amount for such Limitation Year (determined
                  without regard to section 415(c)(6) of the Code), or (2) the
                  product of 1.4 multiplied by the amount which may be taken
                  into account under section 415(c)(1)(B) of the Code (or
                  section 415(c)(7) of the Code, if applicable) with respect to
                  such individual for such Limitation Year; provided, however,
                  that the Plan Administrator may, at his election, adopt the
                  transition rule set forth in section 415(e)(6) of the Code in
                  making the computation set forth in this section 8.2(c)(iv).
                  If the sum of an individual's Defined Benefit Plan Fraction
                  and Defined Contribution

                                      -23-
<PAGE>

                  Plan Fraction exceeded 1.0 as of September 30, 1983, then such
                  individual's Defined Contribution Plan Fraction shall be
                  determined under regulations to be prescribed by the Secretary
                  of the Treasury so that the sum of the fractions does not
                  exceed 1.0.

                           (v) Limitation Year means the Plan Year.

                           (vi) Maximum Permissible Amount means (A) $25,000 (or
                  such higher amount as may be permitted under section 415(d) of
                  the Code because of cost of living increases) for Limitation
                  Years beginning prior to January 1, 1983, and (B) the greater
                  of (I) $30,000, or (II) 25% of the dollar limitation in effect
                  under section 415(b)(1)(A) of the Code for Limitation Years
                  beginning on or after January 1, 1983 and prior to January 1,
                  1994, and (C) the lesser of (I) $30,000 (or such higher amount
                  as may be permitted under section 415(d) of the Code because
                  of cost of living increases) or (II) the percentage limitation
                  in effect under section 415(c)(1)(B) of the Code for
                  Limitation Years beginning on or after January 1, 1995.

                           (vii) Projected Annual Benefit means an individual's
                  annual retirement benefit (adjusted to the actuarial
                  equivalent of a straight life annuity if expressed in a form
                  other than a straight life or qualified joint and survivor
                  annuity) under any qualified defined benefit plan maintained
                  by the Employer, whether or not terminated, assuming that the
                  individual will continue employment until the later of such
                  individual's current age or normal retirement age under such
                  plan, and that the individual's Total Compensation for the
                  Limitation Year and all other relevant factors used to
                  determine benefits under such plan will remain constant for
                  all future Limitation Years.

                           (d) When an individual's Annual Addition to this Plan
                  must be reduced to satisfy the limitations of section 8.2(a)
                  or (b), such reduction shall be applied to Discretionary
                  Contributions and to Shares allocated as a result of a Loan
                  Repayment Contribution which are included as an Annual
                  Addition in such order as shall result in the smallest
                  reduction in the number of Shares allocable to the Member's
                  Account. The amount by which any Member's Annual Addition to
                  this Plan is reduced shall be allocated in accordance with
                  Articles V and VII as a contribution by the Participating
                  Employers in the next succeeding Limitation Year.

                           (e) Prior to determining an individual's actual Total
                  Compensation for a Limitation Year, the Participating Employer
                  may determine the limitations under this section 8.2 for an
                  individual on the basis of a reasonable estimation of the
                  individual's Total Compensation for the Limitation Year that
                  is uniformly determined for all individuals who are similarly
                  situated. As soon as it is administratively feasible after the
                  end of the Limitation Year, the limitations of this section
                  8.2 shall be determined on the basis of the individual's
                  actual Total Compensation for the Limitation Year.

                                      -24-
<PAGE>

                                   ARTICLE IX

                                     VESTING

                  SECTION 9.1. VESTING.

                  Subject to the provisions of sections 9.2 and 14.1(a), the
balance credited to each Member's Account shall become vested in accordance with
the following schedule:

<TABLE>
<CAPTION>
      Years of Vesting                          Vested
           Service                            Percentage
<S>                                           <C>
less than 1 year                                   0%
1 year but less than 2 years                      20%
2 years but less than 3 years                     40%
3 years but less than 4 years                     60%
4 years but less than 5 years                     80%
5 or more years                                  100%
</TABLE>

                  SECTION 9.2. VESTING ON DEATH, DISABILITY, RETIREMENT OR
                               CHANGE IN CONTROL.

                  Any previously unvested portion of the remainder of the
balance credited to the Account of a Member or of a person who is a Former
Member solely because he is excluded from membership under section 2.1(b) shall
become fully vested in him immediately upon attainment of age 65, or, if
earlier, upon the termination of his employment with all Affiliated Employers by
reason of death, Disability, Retirement or upon the occurrence of a Change in
Control.

                  SECTION 9.3. FORFEITURES ON TERMINATION OF EMPLOYMENT.

                  Upon the termination of employment of a Member or Former
Member for any reason other than death, Disability or Retirement, that portion
of the balance credited to his Account which is not vested at the date of such
termination shall be forfeited as of the last Valuation Date for the Plan Year
in which such termination of employment occurs. The proceeds of such
forfeitures, less amounts, if any, required to be credited because of
re-employment pursuant to section 9.4, shall be treated as Forfeitures and shall
be disposed of as provided in section 9.5.

                  SECTION 9.4. AMOUNTS CREDITED UPON RE-EMPLOYMENT.

                  If an Employee forfeited any amount of the balance credited to
his Account upon his termination of employment, and is re-employed by any
Affiliated Employer prior to the occurrence of a Period of Severance of five
years, then:

                  (i) an amount equal to the Fair Market Value of the Shares
         forfeited, determined as of the date of forfeiture; and

                                      -25-
<PAGE>

                  (ii) the amount credited to his General Investment Account
         that was forfeited, determined as of the date of forfeiture; shall be
         credited back to his Account from the proceeds of Forfeitures which are
         redeemed pursuant to section 9.3 during the Plan Year in which he is
         re-employed, unless such proceeds are insufficient, in which case his
         Participating Employer shall make an additional contribution in the
         amount of such deficiency.

                  SECTION 9.5. ALLOCATION OF FORFEITURES.

                  Any Forfeitures that occur during a Plan Year shall be used to
reduce the contributions required of the Employer under the Plan and shall be
treated as Loan Repayment Contributions and Discretionary Contributions in the
proportions designated by the Committee in accordance with Article V.

                                      -26-
<PAGE>

                                    ARTICLE X

                                 THE TRUST FUND

                  SECTION 10.1. THE TRUST FUND.

                  The Trust Fund shall be held and invested under the Trust
Agreement with the Trustee. The provisions of the Trust Agreement shall vest
such powers in the Trustee as to investment, control and disbursement of the
Trust Fund, and such other provisions not inconsistent with the Plan, including
provision for the appointment of one or more investment managers within the
meaning of section 3(38) of ERISA to manage and control (including acquiring and
disposing of) all or any of the assets of the Trust Fund, as the Board may from
time to time authorize. Except as required by ERISA, no bond or other security
shall be required of any Trustee at any time in office.

                  SECTION 10.2. INVESTMENTS.

                  Except to the extent provided to the contrary in section 10.3,
the Trust Fund shall be invested in:

                           (i) Shares;

                           (ii) such Investment Funds as may be established from
                  time to time by the Committee; and

                           (iii) such other investments as may be permitted
                  under the Trust Agreement;

in such proportions as shall be determined by the Committee or, if so provided
under the Trust Agreement, as directed by one or more investment managers or by
the Trustee, in its discretion; provided, however, that the investments of the
Trust Fund shall consist primarily of Shares. Notwithstanding the immediately
preceding sentence, the Trustee may temporarily invest the Trust Fund in
short-term obligations of, or guaranteed by, the United States Government or an
agency thereof, or may retain uninvested, or sell investments to provide,
amounts of cash required for purposes of the Plan.

                  SECTION 10.3. DISTRIBUTIONS FOR DIVERSIFICATION OF
                                INVESTMENTS.

                  (a) Notwithstanding section 10.2, each Qualified Member may:

                  (i) during the first 90 days of each of the first five Plan
         Years to begin after the Plan Year in which he first becomes a
         Qualified Member, elect that such percentage of the balance credited to
         his Account as he may specify, but in no event more than 25% of the
         balance credited to his Account, be either distributed to him pursuant
         to this section 10.3(a)(i) or transferred to the Profit Incentive Bonus
         Plan of Hudson City Savings Bank to the extent permitted by such plan,
         no later than 90 days after the last day that such election may be
         made; and

                                      -27-
<PAGE>

                  (ii) during the first 90 days of the sixth Plan Year to begin
         after the Plan Year in which he first becomes a Qualified Member or of
         any Plan Year thereafter, elect that such percentage of the balance
         credited to his Account as he may specify, but in no event more than
         50% of the balance credited to his Account, be either distributed to
         him pursuant to this section 10.3(a)(ii) or transferred to the Profit
         Incentive Bonus Plan of Hudson City Savings Bank to the extent
         permitted by such plan, no later than 90 days after the last day that
         such election may be made.

For purposes of an election under this section 10.3, the balance credited to a
Member's Account shall be the balance credited to his Account determined as of
the last Valuation Date to occur in the Plan Year immediately preceding the Plan
Year in which such election is made and the 25% and 50% limitations shall apply
to such balance after the balance has been reduced by the amount of all amounts
distributed or transferred to the Profit Incentive Bonus Plan of Hudson City
Savings Bank under this section 10.3.

                  (b) An election made under section 10.3(a) shall be made in
         writing, in the form and manner prescribed by the Plan Administrator,
         and shall be filed with the Plan Administrator during the election
         period specified in section 10.3(a). As soon as is practicable, and in
         no case later than 90 days following the end of the election period
         during which such election is made, the Plan Administrator shall take
         such actions as are necessary to cause the specified percentage of the
         balance credited to the Account of the Qualified Member making the
         election to be distributed to such Qualified Member.

                  (c) An election made under section 10.3(a) may be changed or
         revoked at any time during the election period described in section
         10.3(a) during which it is initially made. In no event, however, shall
         any election under this section 10.3 result in more than 25% of the
         balance credited to the Member's Account being distributed to the
         Member or transferred to the Profit Incentive Bonus Plan of Hudson City
         Savings Bank, if such election is made during a Plan Year to which
         section 10.3(a)(i) applies, or result in more than 50% of the balance
         distributed to the Member or transferred to the Profit Incentive Bonus
         Plan of Hudson City Savings Bank, if such election is made during the
         Plan Year to which section 10.3(a)(ii) applies or thereafter.

                  SECTION 10.4. USE OF COMMINGLED TRUST FUNDS.

                  Subject to the provisions of the Trust Agreement, amounts held
in the Trust Fund may be invested in:

                  (a) any commingled or group trust fund described in section
         401(a) of the Code and exempt under section 501(a) of the Code; or

                  (b) any common trust fund exempt under section 584 of the Code
         maintained exclusively for the collective investment of the assets of
         trusts that are exempt under section 501(a) of the Code;

                                      -28-
<PAGE>

provided that the trustee of such commingled, group or common trust fund is a
bank or trust company.

                  SECTION 10.5. MANAGEMENT AND CONTROL OF ASSETS.

                  All assets of the Plan shall be held by the Trustee in trust
for the exclusive benefit of Members, Former Members and their Beneficiaries. No
part of the corpus or income of the Trust Fund shall be used for, or diverted
to, purposes other than for the exclusive benefit of Members, Former Members and
their Beneficiaries, and for defraying reasonable administrative expenses of the
Plan and Trust Fund. No person shall have any interest in or right to any part
of the earnings of the Trust Fund, or any rights in, to or under the Trust Fund
or any part of its assets, except to the extent expressly provided in the Plan.

                                      -29-
<PAGE>

                                   ARTICLE XI

                    VALUATION OF INTERESTS IN THE TRUST FUND

                  SECTION 11.1. ESTABLISHMENT OF INVESTMENT ACCOUNTS.

                  The Plan Administrator shall establish, or cause to be
established, for each person for whom an Account is maintained a Share
Investment Account and a General Investment Account. Such Share Investment
Accounts and General Investment Accounts shall be maintained in accordance with
this Article XI.

                  SECTION 11.2. SHARE INVESTMENT ACCOUNTS.

                  The Share Investment Account established for a person in
accordance with section 11.1 shall be credited with: (a) all Shares allocated to
such person's Account; (b) all Shares purchased with amounts of money or
property allocated to such person's Account; (c) all dividends paid in the form
of Shares with respect to Shares credited to his Account; and (d) all Shares
purchased with amounts credited to such person's General Investment Account.
Such Share Investment Account shall be charged with all Shares that are sold or
exchanged to acquire other investments or to provide cash and with all Shares
that are distributed in kind.

                  SECTION 11.3. GENERAL INVESTMENT ACCOUNTS.

                  The General Investment Account that is established for a
person in accordance with section 11.1 shall be credited with: (a) all amounts,
other than Shares, allocated to such person's Account; (b) all dividends paid in
a form other than Shares with respect to Shares credited to such person's Share
Investment Account; (c) the proceeds of any sale of Shares credited to such
person's Share Investment Account; and (d) any earnings attributable to amounts
credited to such person's General Investment Account. Such General Investment
Account shall be charged with all amounts credited thereto that are applied to
the purchase of Shares, any losses or depreciation attributable to amounts
credited thereto, any expenses allocable thereto and any distributions of
amounts credited thereto.

                  SECTION 11.4. VALUATION OF INVESTMENT ACCOUNTS.

                  (a) The Plan Administrator shall determine, or cause to be
         determined, the aggregate value of each person's Share Investment
         Account as of each Valuation Date by multiplying the number of Shares
         credited to such Share Investment Account on such Valuation Date by the
         Fair Market Value of a Share on such Valuation Date.

                  (b) As of each Valuation Date, the Accounts of each Member
         shall be separately adjusted to reflect their proportionate share of
         any appreciation or depreciation in the fair market value of the
         Investment Funds, any income earned by the Investment Funds and any
         expenses incurred by the Investment Funds, as well as any
         contributions, withdrawals or distributions and investment transfers
         not posted as of the last Valuation Date.

                                      -30-
<PAGE>

                  SECTION 11.5. ANNUAL STATEMENTS.

                  There shall be furnished, by mail or otherwise, at least once
in each Plan Year to each person who would then be entitled to receive all or
part of the balance credited to any Account if the Plan were then terminated, a
statement of his interest in the Plan as of such date as shall be selected by
the Plan Administrator, which statement shall be deemed to have been accepted as
correct and be binding on such person unless the Plan Administrator receives
written notice to the contrary within 30 days after the statement is mailed or
furnished to such person.

                                      -31-
<PAGE>

                                   ARTICLE XII

                                     SHARES

                  SECTION 12.1. SPECIFIC ALLOCATION OF SHARES.

                  All Shares purchased under the Plan shall be specifically
allocated to the Share Investment Accounts of Members, Former Members and their
Beneficiaries in accordance with section 11.2, with the exception of Financed
Shares, which shall be allocated to the Loan Repayment Account.

                  SECTION 12.2. DIVIDENDS.

                  (a) Dividends paid with respect to Shares held under the Plan
         shall be credited to the Loan Repayment Account, if paid with respect
         to Financed Shares. Such dividends shall be: (i) applied to the payment
         of principal and accrued interest with respect to any Share Acquisition
         Loan, if paid in cash; or (ii) held in the Loan Repayment Account as
         Financed Shares for release in accordance with section 6.4, if paid in
         the form of Shares.

                  (b) Dividends paid with respect to Shares allocated to a
         person's Share Investment Account shall be credited to such person's
         Share Investment Account. Cash dividends credited to a person's General
         Investment Account shall be, at the direction of the Committee, either:
         (i) held in such General Investment Account and invested in accordance
         with sections 10.2 and 11.3; (ii) distributed immediately to such
         person; (iii) distributed to such person within 90 days of the close of
         the Plan Year in which such dividends were paid; or (iv) used to make
         payments of principal or interest on a Share Acquisition Loan;
         provided, however, that the Fair Market Value of Financed Shares
         released from the Loan Repayment Account as a result of such payment
         equals or exceeds the amount of the dividend.

                  SECTION 12.3. VOTING RIGHTS.

                  (a) Each person shall direct the manner in which all voting
         rights appurtenant to Shares allocated to his Share Investment Account
         will be exercised, provided that such Shares were allocated to his
         Share Investment Account as of the applicable record date. Such person
         shall, for such purpose, be deemed a named fiduciary within the meaning
         of section 402(a)(2) of ERISA. Such a direction shall be given by
         completing and filing with the inspector of elections, the Trustee or
         such other person who shall be independent of the Participating
         Employers as the Committee shall designate, at least 10 days prior to
         the date of the meeting of holders of Shares at which such voting
         rights will be exercised, a written direction in the form and manner
         prescribed by the Committee. The inspector of elections, the Trustee or
         such other person designated by the Committee shall tabulate the
         directions given on a strictly confidential basis, and shall provide
         the Committee with only the final results of the tabulation. The final
         results of the tabulation shall be followed by the Committee in
         directing the Trustee as to the manner in which such

                                      -32-
<PAGE>

         voting rights shall be exercised. The Plan Administrator shall make a
         reasonable effort to furnish, or cause to be furnished, to each person
         for whom a Share Investment Account is maintained all annual reports,
         proxy materials and other information known by the Plan Administrator
         to have been furnished by the issuer of the Shares, or by any solicitor
         of proxies, to the holders of Shares.

                  (b) To the extent that any person shall fail to give
         instructions with respect to the exercise of voting rights appurtenant
         to Shares allocated to his Share Investment Account:

                  (i) the Trustee shall, with respect to each matter to be voted
         upon: (A) cast a number of affirmative votes equal to the product of
         (I) the number of allocated Shares for which no written instructions
         have been given, multiplied by (II) a fraction, the numerator of which
         is the number of allocated Shares for which affirmative votes will be
         cast in accordance with written instructions given as provided in
         section 12.3(a) and the denominator of which is the aggregate number of
         affirmative and negative votes which will be cast in accordance with
         written instructions given as aforesaid, and (B) cast a number of
         negative votes equal to the excess (if any) of (I) the number of
         allocated Shares for which no written instructions have been given over
         (II) the number of affirmative votes being cast with respect to such
         allocated Shares pursuant to section 12.3(b)(i)(A); or

                  (ii) if the Trustee shall determine that it may not,
         consistent with its fiduciary duties, vote the allocated Shares for
         which no written instructions have been given in the manner described
         in section 12.3(b)(i), it shall vote such Shares in such manner as it,
         in its discretion, may determine to be in the best interests of the
         persons to whose Share Investment Accounts such Shares have been
         allocated.

                  (c) (i) The voting rights appurtenant to Financed Shares shall
         be exercised as follows with respect to each matter as to which holders
         of Shares may vote:

                           (A) a number of votes equal to the product of (I) the
                  total number of votes appurtenant to Financed Shares allocated
                  to the Loan Repayment Account on the applicable record date;
                  multiplied by (II) a fraction, the numerator of which is the
                  total number of affirmative votes cast by Members, Former
                  Members and the Beneficiaries of deceased Former Members with
                  respect to such matter pursuant to section 12.3(a) and the
                  denominator of which is the total number of affirmative and
                  negative votes cast by Members, Former Members and the
                  Beneficiaries of deceased Former Participants, shall be cast
                  in the affirmative; and

                           (B) a number of votes equal to the excess of (I) the
                  total number of votes appurtenant to Financed Shares allocated
                  to the Loan Repayment Account on the applicable record date,
                  over (II) the number of affirmative votes cast pursuant to
                  section 12.3(c)(i)(A) shall be cast in the negative.

To the extent that the Financed Shares consist of more than one class of Shares,
this section 12.3(c)(i) shall be applied separately with respect to each class
of Shares.

                                      -33-
<PAGE>

                  SECTION 12.4. TENDER OFFERS.

                  (a) Each person shall direct whether Shares allocated to his
         Share Investment Account will be delivered in response to any Tender
         Offer. Such person shall, for such purpose, be deemed a "named
         fiduciary" within the meaning of section 402(a)(2) of ERISA. Such a
         direction shall be given by completing and filing with the Trustee or
         such other person who shall be independent of the Participating
         Employers as the Committee shall designate, at least 10 days prior to
         the latest date for exercising a right to deliver Shares pursuant to
         such Tender Offer, a written direction in the form and manner
         prescribed by the Committee. The Trustee or other person designated by
         the Committee shall tabulate the directions given on a strictly
         confidential basis, and shall provide the Committee with only the final
         results of the tabulation. The final results of the tabulation shall be
         followed by the Committee in directing the number of Shares to be
         delivered. The Plan Administrator shall make a reasonable effort to
         furnish, or cause to be furnished, to each person for whom a Share
         Investment Account is maintained, all information known by the Plan
         Administrator to have been furnished by the issuer or by or on behalf
         of any person making such Tender Offer, to the holders of Shares in
         connection with such Tender Offer.

                  (b) To the extent that any person shall fail to give
         instructions with respect to Shares allocated to his Share Investment
         Account:

                  (i) the Trustee shall (A) tender or otherwise offer for
         purchase, exchange or redemption a number of such Shares equal to the
         product of (I) the number of allocated Shares for which no written
         instructions have been given, multiplied by (II) a fraction, the
         numerator of which is the number of allocated Shares tendered or
         otherwise offered for purchase, exchange or redemption in accordance
         with written instructions given as provided in section 12.4(a) and the
         denominator of which is the aggregate number of allocated Shares for
         which written instructions have been given as aforesaid, and (B)
         withhold a number of Shares equal to the excess (if any) of (I) the
         number of allocated Shares for which no written instructions have been
         given over (II) the number of Shares being tendered or otherwise
         offered pursuant to section 12.4(b)(i)(A); or

                  (ii) if the Trustee shall determine that it may not,
         consistent with its fiduciary duties, exercise the tender or other
         rights appurtenant to allocated Shares for which no written
         instructions have been given in the manner described in section
         12.4(b)(i), it shall tender, or otherwise offer, or withhold such
         Shares in such manner as it, in its discretion, may determine to be in
         the best interests of the persons to whose Share Investment Accounts
         such Shares have been allocated.

                  (c) In the case of any Tender Offer, any Financed Shares held
         in the Loan Repayment Account shall be dealt with as follows:

                  (i) on the last day for delivering Shares or otherwise
         responding to such Tender Offer, a number of Financed Shares equal to
         the product of (A) the total

                                      -34-
<PAGE>

         number of Financed Shares allocated to the Loan Repayment Account on
         the last day of the effective period of such Tender Offer; multiplied
         by (B) a fraction, the numerator of which is the total number of Shares
         delivered from the Share Investment Accounts of Members, Former Members
         and the Beneficiaries of deceased Former Participants in response to
         such Tender Offer pursuant to section 12.4(a), and the denominator of
         which is the total number of Shares allocated to the Share Investment
         Accounts of Members, Former Members and Beneficiaries of deceased
         Former Members immediately prior to the last day for delivering Shares
         or otherwise responding to such Tender Offer, shall be delivered; and

                  (ii) a number of Financed Shares equal to the excess of (A)
         the total number of Financed Shares allocated to the Loan Repayment
         Account on the last day for delivering Shares or otherwise responding
         to such Tender Offer; over (B) the number of Financed Shares to be
         delivered pursuant to section 12.4(c)(i), shall be withheld from
         delivery.

To the extent that the Financed Shares consist of more than one class of Shares,
this section 12.4(c) shall be applied separately with respect to each class of
Shares.

                                      -35-
<PAGE>

                                  ARTICLE XIII

                               PAYMENT OF BENEFITS

                  SECTION 13.1. IN GENERAL.

                  The balance credited to a Member's or Former Member's Account
under the Plan shall be paid only at the times, to the extent, in the manner and
to the persons provided in this Article XIII.

                  SECTION 13.2. DESIGNATION OF BENEFICIARIES.

                  (a) Subject to section 13.2(b), any person entitled to a
         benefit under the Plan may designate a Beneficiary to receive any
         amount to which he is entitled that remains undistributed on the date
         of his death. Such person shall designate his Beneficiary (and may
         change or revoke any such designation) in writing in the form and
         manner prescribed by the Plan Administrator. Such designation, and any
         change or revocation thereof, shall be effective only if received by
         the Plan Administrator prior to such person's death and shall become
         irrevocable upon such person's death.

                  (b) A Member or Former Member who is married shall
         automatically be deemed to have designated his spouse as his
         Beneficiary, unless, prior to the time such designation would, under
         section 13.2(a), become irrevocable:

                  (i) the Member or Former Member designates an additional or a
         different Beneficiary in accordance with this section 13.2; and

                  (ii) (A) the spouse of such Member or Former Member consents
         to such designation in a writing that acknowledges the effect of such
         consent and is witnessed by a Plan representative or a notary public;
         or (B) the spouse of such Member or Former Member has previously
         consented to such designation by signing a written waiver of any right
         to consent to any designation made by the Member or Former Member, and
         such waiver acknowledged the effect of the waiver and was witnessed by
         a Plan representative or a notary public; or (C) it is established to
         the satisfaction of a Plan representative that the consent required
         under section 13.2(b)(ii)(A) may not be obtained because such spouse
         cannot be located or because of other circumstances permitted under
         regulations issued by the Secretary of the Treasury.

                  (c) In the event that a Beneficiary entitled to payments
         hereunder shall die after the death of the person who designated him
         but prior to receiving payment of his entire interest in the Account of
         the person who designated him, then such Beneficiary's interest in the
         Account of such person, or any unpaid balance thereof, shall be paid as
         provided in section 13.3 to the Beneficiary who has been designated by
         the deceased Beneficiary, or if there is none, to the executor or
         administrator of the estate of such deceased Beneficiary, or if no such
         executor or administrator is appointed within such time as the Plan
         Administrator, in his sole discretion, shall

                                      -36-
<PAGE>

         deem reasonable, to such one or more of the spouse and descendants and
         blood relatives of such deceased Beneficiary as the Plan Administrator
         may select. If a person entitled to a benefit under the Plan and any of
         the Beneficiaries designated by him shall die in such circumstances
         that there shall be substantial doubt as to which of them shall have
         been the first to die, for all purposes of the Plan, the person who
         made the Beneficiary designation shall be deemed to have survived such
         Beneficiary.

                  (d) If no Beneficiary survives the person entitled to the
         benefit under the Plan or if no Beneficiary has been designated by such
         person, such benefit shall be paid to the executor or administrator of
         the estate of such person, or if no such executor or administrator is
         appointed within such time as the Plan Administrator, in his sole
         discretion, shall deem reasonable, to such one or more of the spouse
         and descendants and blood relatives of such deceased person as the Plan
         Administrator may select.

                  (e) For taxable years beginning after December 31, 2002, the
         determination of whether a Beneficiary is a Designated Beneficiary and
         whether a Designated Beneficiary is a surviving spouse shall be made
         not later than September 30th of the calendar year following the
         calendar year in which the Member dies.

                  SECTION 13.3. DISTRIBUTIONS TO MEMBERS.

                  (a) Except as provided in section 13.5, the vested portion of
         the balance credited to a Former Member's Account shall be distributed
         to him in a single distribution as of the last Valuation Date to occur
         in the Plan Year in which he terminates employment with all Affiliated
         Employers or the Plan Year in which he attains age 65, whichever is
         later; provided, however, that if the Former Member elects, at such
         time and in such manner as the Plan Administrator may prescribe, that
         distribution be made as of an earlier Valuation Date that coincides
         with or follows his termination of employment with all Affiliated
         Employers, distribution shall be made as of such earlier Valuation
         Date. The actual distribution shall be made within sixty days after the
         applicable Valuation Date.

                  (b) In the event of the death of a Member or Former Member
         before the date of actual distribution of the vested portion of the
         balance credited to his Account, such vested portion shall be
         distributed to his Beneficiary in a single distribution as of the first
         Valuation Date to occur following the latest of (i) the date on which
         the Plan Administrator is notified of the Member's or Former Member's
         death; and (ii) the date on which the Plan Administrator determines the
         identity and location of the Member's or Former Member's Beneficiary or
         Beneficiaries. The actual distribution shall be made within sixty days
         after the applicable Valuation Date.

                  SECTION 13.4. MANNER OF PAYMENT.

                  Distributions made pursuant to section 13.3 or section 13.5
shall be made in the maximum number of whole Shares that are available, plus, if
necessary, an amount of money equal to any remaining amount of the distribution
that is less than the Fair Market Value of a whole Share.

                                      -37-
<PAGE>

                  SECTION 13.5. MINIMUM REQUIRED DISTRIBUTIONS.

         (a) Required minimum distributions of a Member's or Former Member's
Account shall commence no later than:

                  (i) If the Member or Former Member was not a Five Percent
         Owner at any time during the Plan Year ending in the calendar year in
         which he attained age 70 1/2, during any of the four preceding Plan
         Years or during any subsequent years, the later of (A) the calendar
         year in which he attains or attained age 70 1/2 or (B) the calendar
         year in which he terminates employment with all Affiliated Employers;
         or

                  (ii) if the Member or Former Member attains age 70 1/2 after
         December 31, 1998 and is or was a Five Percent Owner at any time during
         the Plan Year ending in the calendar year in which he attained age 70
         1/2, during any of the four preceding Plan Years or during any
         subsequent years, the later of (A) the calendar year in which he
         attains age 70 1/2 or (B) the calendar year in which he first becomes a
         Five Percent Owner.

         (b) The required minimum distributions contemplated by section 13.5(a)
shall be made as follows:

                  (i) The minimum required distribution to be made for the
         calendar year for which the first minimum distribution is required
         shall be no later than April 1st of the immediately following calendar
         year and shall be equal to the quotient obtained by dividing (A) the
         vested balance credited to the Member's or Former Member's Account as
         of the last Valuation Date to occur in the calendar year immediately
         preceding the calendar year in which the first minimum distribution is
         required (adjusted to account for any additions thereto or subtractions
         therefrom after such Valuation Date but on or before December 31st of
         such calendar year); by (B) the Member's or Former Member's life
         expectancy (or, if his Beneficiary is a Designated Beneficiary, the
         joint life and last survivor expectancy of him and his Beneficiary);
         and

                  (ii) the minimum required distribution to be made for each
         calendar year following the calendar year for which the first minimum
         distribution is required shall be made no later than December 31st of
         the calendar year for which the distribution is required and shall be
         equal to the quotient obtained by dividing (A) the vested balance
         credited to the Member's or Former Member's Account as of the last
         Valuation Date to occur in the calendar year prior to the calendar year
         for which the distribution is required (adjusted to account for any
         additions thereto or subtractions therefrom after such Valuation Date
         but on or before December 31st of such calendar year and, in the case
         of the distribution for the calendar year immediately following the
         calendar year for which the first minimum distribution is required,
         reduced by any distribution for the prior calendar year that is made in
         the current calendar year); by (B) the Member's or Former Member's life
         expectancy (or, if his Beneficiary is a Designated Beneficiary, the
         joint life and last survivor expectancy of him and his Beneficiary).

                                      -38-
<PAGE>

                  (iii) For purposes of this section 13.5:

                           (A) for taxable years beginning before January 1,
                  2003, the life expectancy of a Member or Former Member (or the
                  joint life and last survivor expectancy of a Member or Former
                  Member and his Designated Beneficiary) for the calendar year
                  in which the Member or Former Member attains age 70 1/2 shall
                  be determined on the basis of Tables V and VI, as applicable,
                  of section 1.72-9 of the Income Tax Regulations as of the
                  Member's or Former Member's and Beneficiary's birthday in such
                  year. Such life expectancy or joint life and last survivor
                  expectancy for any subsequent year shall be equal to the
                  excess of (1) the life expectancy or joint life and last
                  survivor expectancy for the year in which the Member or Former
                  Member attains age 70 1/2, over (2) the number of whole years
                  that have elapsed since the Member or Former Member attained
                  age 70 1/2.

                           (B) for taxable years beginning after December 31,
                  2002, during the Member's or Former Member's lifetime, life
                  expectancy shall be equal to:

                                    (1) the distribution period in the Uniform
                           Lifetime Table set forth in section 1.401(a)(9)-9 of
                           the Treasury regulations, using the Member's age as
                           of the Member's birthday in such calendar year; or

                                    (2) if the Member's spouse is the sole
                           Designated Beneficiary and the spouse is more than
                           ten years younger than the Member, the number in the
                           Joint and Last Survivor Table set forth in section
                           1.401(a)(9)-9 of the Treasury regulations, using the
                           Member's and spouse's attained ages as of the
                           Member's and spouse's birthdays in such calendar
                           year.

         (c) Payment of the distributions required to be made to a Member or
Former Member under this section 13.5 shall be made in accordance with section
13.4.

                  SECTION 13.6. DIRECT ROLLOVER OF ELIGIBLE ROLLOVER
                                DISTRIBUTIONS.

                  (a) A Distributee may elect, at the time and in the manner
         prescribed by the Plan Administrator, to have any portion of an
         Eligible Rollover Distribution paid directly to an Eligible Retirement
         Plan specified by the Distributee in a Direct Rollover.

                  (b) The following rules shall apply with respect to Direct
         Rollovers made pursuant to this section 13.6:

                  (i) A Member or Former Member may only elect to make a Direct
         Rollover of an Eligible Rollover Distribution if such Eligible Rollover
         Distribution (when combined with other Eligible Rollover Distributions
         made or to be made in the same calendar year) is reasonably expected to
         be at least $200;

                                      -39-
<PAGE>

                  (ii) If a Member or Former Member elects a Direct Rollover of
         a portion of an Eligible Rollover Distribution, that portion must be
         equal to at least $500; and

                  (iii) A Member or Former Member may not divide his or her
         Eligible Rollover Distribution into separate distributions to be
         transferred to two or more Eligible Retirement Plans.

                  (c) For purposes of this section 13.6 and any other applicable
         section of the Plan, the following definitions shall have the following
         meanings:

                  (i) "Direct Rollover" means a payment by the Plan to the
         Eligible Retirement Plan specified by the Distributee.

                  (ii) "Distributee" means an Employee or former Employee. In
         addition, the Employee's or former Employee's surviving spouse and the
         Employee's spouse or former spouse who is the alternate payee under a
         Qualified Domestic Relations Order are considered Distributees with
         regard to the interest of the spouse or former spouse.

                  (iii) "Eligible Retirement Plan" means an individual
         retirement account described in section 408(a) of the Code, an
         individual retirement annuity described in section 408(b) of the Code,
         an annuity plan described in section 403(a) of the Code, or a qualified
         trust described in section 401(a) of the Code, and (for distributions
         after December 31, 2001 only) an annuity contract described in section
         403(b) of the Code or an eligible deferred compensation plan under
         section 457(b) of the Code which is maintained by a state, political
         subdivision of a state, or an agency or instrumentality of a state or
         political subdivision thereof and which agrees to separately account
         for amounts transferred into such plan from this Plan, that accepts the
         distributee's eligible rollover distribution. However, in the case of
         an eligible rollover distribution made before January 1, 2002 to a
         current or former spouse who is the alternate payee under a qualified
         domestic relations order as defined in Code section 414(p) or to a
         surviving spouse, an eligible retirement plan is only an individual
         retirement account or individual retirement annuity.

                  (iv) "Eligible Rollover Distribution" means any distribution
         of all or any portion of the balance to the credit of the Distributee,
         except that an Eligible Rollover Distribution does not include: any
         distribution that is one of a series of substantially equal periodic
         payments (not less frequently than annually) made for the life (or life
         expectancy) of the Distributee or the joint lives (or joint life
         expectancies) of the Distributee's designated Beneficiary, or for a
         specified period of ten (10) years or more; any distribution to the
         extent such distribution is required under section 401(a)(9) of the
         Code; and the portion of any distribution that is not includible in
         gross income (determined without regard to the exclusion for net
         unrealized appreciation with respect to employer securities).

                                      -40-
<PAGE>

                  SECTION 13.7. VALUATION OF SHARES UPON DISTRIBUTION.

                  Notwithstanding any contrary provision in this Article XIII,
in the event that all or a portion of a payment of a distribution is to be made
in cash, the recipient shall only be entitled to receive the proceeds of the
Shares allocated to his Account that are sold in connection with such
distribution and which are valued as of the date of such sale.

                  SECTION 13.8. PUT OPTIONS.

                  (a) Subject to section 13.8(c) and except as provided
         otherwise in section 13.8(b), each Member or Former Member to whom
         Shares are distributed under the Plan, each Beneficiary of a deceased
         Member or Former Member, including the estate of a deceased Member or
         Former Member, to whom Shares are distributed under the Plan, and each
         person to whom such a Member, Former Member or Beneficiary gives Shares
         that have been distributed under the Plan shall have the right to
         require Hudson City Bancorp, Inc. to purchase from him all or any
         portion of such Shares. A person shall exercise such right by
         delivering to Hudson City Bancorp, Inc. a written notice, in such form
         and manner as Hudson City Bancorp, Inc. may by written notice to such
         person prescribe, setting forth the number of Shares to be purchased by
         Hudson City Bancorp, Inc., the number of the stock certificate
         evidencing such person's ownership of such Shares, and the effective
         date of the purchase. Such notice shall be given at least 30 days in
         advance of the effective date of purchase, and the effective date of
         purchase specified therein shall be, either within the 60 day period
         that begins on the date on which the Shares to be purchased by Hudson
         City Bancorp, Inc. were distributed from the Plan or within the 60 day
         period that begins on the first day of the Plan Year immediately
         following the Plan Year in which the Shares to be purchased by Hudson
         City Bancorp, Inc. are distributed from the Plan. As soon as
         practicable following its receipt of such a notice, Hudson City
         Bancorp, Inc. shall take such actions as are necessary to purchase the
         Shares specified in such notice at a price per Share equal to the Fair
         Market Value of a Share determined as of the Valuation Date coincident
         with or immediately preceding the effective date of the purchase.

                  (b) Hudson City Bancorp, Inc. shall have no obligation to
         purchase any Share (i) pursuant to a notice that is not timely given,
         or on an effective date of purchase that is not within the periods
         prescribed in section 13.8(a) or (ii) during a period in which Shares
         are publicly traded on an established market.

                  (c) This section 13.8 shall not apply so long as Hudson City
         Bancorp, Inc. is prohibited by law from redeeming or purchasing its own
         securities.

                  SECTION 13.9. RIGHT OF FIRST REFUSAL.

                  (a) Subject to section 13.9(d), for any period during which
         Shares are not publicly traded in any established market, no person who
         owns Shares that were distributed from the Plan, other than a person to
         whom such Shares were sold in

                                      -41-
<PAGE>

         compliance with this section 13.9, shall sell such Shares to any person
         other than Hudson City Bancorp, Inc. without first offering to sell
         such Shares to Hudson City Bancorp, Inc. in accordance with this
         section 13.9.

                  (b) In the event that a person to whom this section 13.9
         applies shall receive and desire to accept from a person other than
         Hudson City Bancorp, Inc. an offer to purchase Shares to which this
         section 13.9 applies, he shall furnish to Hudson City Bancorp, Inc. a
         written notice which shall:

                  (i) include a copy of such offer to purchase;

                  (ii) offer to sell to Hudson City Bancorp, Inc. the Shares
         subject to such offer to purchase at a price per Share that is equal to
         the greater of:

                           (A) the price per Share specified in such offer to
                  purchase; or

                           (B) the Fair Market Value of a Share as of the
                  Valuation Date coincident with or immediately preceding the
                  date of such notice;

         and otherwise upon the same terms and conditions as those specified in
         such offer to purchase; and

                  (iii) include an indication of his intention to accept such
         offer to purchase if Hudson City Bancorp, Inc. does not accept his
         offer to sell.

Such person shall refrain from accepting such offer to purchase for a period of
fourteen days following the date on which such notice is given.

                  (c) Subject to section 13.9(d), Hudson City Bancorp, Inc.
         shall have the right to purchase the Shares covered by the offer to
         sell contained in a notice given pursuant to section 13.9(b), on the
         terms and conditions specified in such notice, by written notice given
         to the party making the offer to sell not later than the fourteenth day
         after the notice described in section 13.9(b) is given. If Hudson City
         Bancorp, Inc. does not give such a notice during the prescribed
         fourteen day period, then the person owning such Shares may accept the
         offer to purchase described in the notice.

                  (d) This section 13.9 shall not apply so long as Hudson City
         Bancorp, Inc. is prohibited by law from redeeming or purchasing its own
         securities.

                                      -42-
<PAGE>

                                   ARTICLE XIV

                                CHANGE IN CONTROL

                  SECTION 14.1. DEFINITION OF CHANGE IN CONTROL; PENDING CHANGE
                                IN CONTROL.

                  (a) A Change in Control shall be deemed to have occurred upon
         the happening of any of the following events:

                  (i) any event upon which any "person" (as such term is used in
         sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as
         amended), other than (A) a trustee or other fiduciary holding
         securities under any employee benefit plan maintained for the benefit
         of employees of Hudson City Bancorp, Inc.; (B) a corporation owned,
         directly or indirectly, by the stockholders of Hudson City Bancorp,
         Inc. in substantially the same proportions as their ownership of stock
         of Hudson City Bancorp, Inc.; or (C) any group constituting a person in
         which employees of Hudson City Bancorp, Inc. are substantial members,
         becomes the "beneficial owner" (as defined in Rule 13d-3 promulgated
         under the Exchange Act), directly or indirectly, of securities issued
         by Hudson City Bancorp, Inc. representing 25% or more of the combined
         voting power of all of Hudson City Bancorp, Inc.'s then outstanding
         securities; or

                  (ii) any event upon which the individuals who on the Effective
         Date were members of the Board of Directors of Hudson City Bancorp,
         Inc. together with individuals whose election by such Board or
         nomination for election by Hudson City Bancorp, Inc.'s stockholders was
         approved by the affirmative vote of at least two-thirds of the members
         of such Board then in office who were either members of such Board on
         the Effective Date or whose nomination or election was previously so
         approved, cease for any reason to constitute a majority of the members
         of such Board, but excluding, for this purpose, any such individual
         whose initial assumption of office is in connection with an actual or
         threatened election contest relating to the election of directors of
         Hudson City Bancorp, Inc. (as such terms are used in Rule 14a-11 of
         Regulation 14A promulgated under the Securities Exchange Act of 1934)
         as amended; or

                  (iii) the consummation of either:

                           (A) a merger or consolidation of Hudson City Bancorp,
                  Inc. with any other corporation, other than a merger or
                  consolidation following which both of the following conditions
                  are satisfied:

                           (I) either (1) the members of the Board of Directors
                  of Hudson City Bancorp, Inc. immediately prior to such merger
                  or consolidation constitute at least a majority of the members
                  of the governing body of the institution resulting from such
                  merger or consolidation; or (2) the shareholders of Hudson
                  City Bancorp, Inc. own securities of the institution resulting
                  from such merger or consolidation

                                      -43-
<PAGE>

                  representing 60% or more of the combined voting power of all
                  such securities then outstanding in substantially the same
                  proportions as their ownership of voting securities of Hudson
                  City Bancorp, Inc. before such merger or consolidation; and

                           (II) the entity which results from such merger or
                  consolidation expressly agrees in writing to assume and
                  perform Hudson City Bancorp, Inc.'s obligations under the
                  Plan; or

                           (B) a complete liquidation of Hudson City Bancorp,
                  Inc. or an agreement for the sale or disposition by Hudson
                  City Bancorp, Inc. of all or substantially all of its assets;
                  or

                  (iv) any event that would be described in section 16.1 if
         "Hudson City Savings Bank" were substituted for "Hudson City Bancorp,
         Inc." therein.

In no event, however, shall the transaction by which Hudson City Savings Bank
converts from a mutual institution to a stock institution, or any transaction by
which a company wholly owned by Hudson City Savings Bank becomes the parent
company of Hudson City Savings Bank, be deemed a Change in Control.

                  (b) A Pending Change of Control shall be deemed to have
         occurred upon the happening of any of the following events:

                  (i) approval by the stockholders of Hudson City Bancorp, Inc.
         of a transaction, or a plan for the consummation of a transaction,
         which, if consummated, would result in a Change in Control;

                  (ii) approval by the Board of Directors of Hudson City
         Bancorp, Inc. of a transaction, or a plan for the consummation of a
         transaction, which, if consummated, would result in a Change in
         Control;

                  (iii) the commencement of a tender offer (within the meaning
         of section 14(d)(i) of the Exchange Act, as amended) for securities
         issued by Hudson City Bancorp, Inc., which, if completed, would result
         in a Change in Control;

                  (iv) the furnishing or distribution of a proxy statement or
         other document, whether or not in opposition to management, soliciting
         proxies, consents or authorizations (within the meaning of section 14
         of the Exchange Act) in respect of securities issued by Hudson City
         Bancorp, Inc. in favor of any election, transaction or other action
         which, if effected, would result in a Change in Control; or

                  (v) any event which would be described in Sections 14.1(b)(i),
         (ii), (iii) or (iv) if "Hudson City Savings Bank" were substituted for
         "Hudson City Bancorp, Inc." therein.

                                      -44-
<PAGE>

                  SECTION 14.2. VESTING ON CHANGE OF CONTROL.

                  Notwithstanding any other provision of the Plan, upon the
effective date of a Change in Control, the Account of each person who would
then, upon termination of the Plan, be entitled to a benefit, shall be fully
vested and nonforfeitable.

                  SECTION 14.3. REPAYMENT OF SHARE ACQUISITION LOAN.

                  Notwithstanding any other provision of the Plan, upon the
occurrence of a Change in Control, the Committee shall direct the Trustee to
sell a sufficient number of shares of Stock to repay any outstanding Share
Acquisition Loan, all remaining Shares which had been unallocated (or the
proceeds from the sale thereof, if applicable) shall be allocated among the
accounts of all individuals with undistributed Account balances on the effective
date of such Change in Control. Such allocation of Shares or proceeds shall be
in proportion to the balance credited to their Accounts immediately prior to
such allocation.

                  SECTION 14.4. PLAN TERMINATION AFTER CHANGE IN CONTROL.

                  Notwithstanding any other provision of the Plan, after
repayment of the loan and allocation of Shares or proceeds as provided in
Section 14.3, the Plan shall be terminated and all amounts shall be distributed
as soon as practicable.

                  SECTION 14.5. AMENDMENT OF SECTION XIV.

                  Notwithstanding any other provision of the Plan, this Section
14 of the Plan may be amended after the earliest date on which a Change in
Control or Pending Change in Control occurs, except (i) to the extent any
amendment is required by the Internal Revenue Service as a condition to the
continued treatment of the Plan as a tax-qualified plan under section 401(a) of
the Code or (ii) to the extent that the Bank, in its sole discretion, determines
than any such amendment is necessary in order to permit any transaction to which
the Bank, and/or its parent or affiliate, is or proposes to be a party to
qualify for "pooling of interests" accounting treatment.

                                      -45-
<PAGE>

                                   ARTICLE XV

                                 ADMINISTRATION

                  SECTION 15.1. NAMED FIDUCIARIES.

                  The term "Named Fiduciary" shall mean (but only to the extent
of the responsibilities of each of them) the Plan Administrator, the Committee,
the Board and the Trustee. This Article XV is intended to allocate to each Named
Fiduciary the responsibility for the prudent execution of the functions assigned
to him or it, and none of such responsibilities or any other responsibility
shall be shared by two or more of such Named Fiduciaries. Whenever one Named
Fiduciary is required by the Plan or Trust Agreement to follow the directions of
another Named Fiduciary, the two Named Fiduciaries shall not be deemed to have
been assigned a shared responsibility, but the responsibility of the Named
Fiduciary giving the directions shall be deemed his sole responsibility, and the
responsibility of the Named Fiduciary receiving those directions shall be to
follow them insofar as such instructions are on their face proper under
applicable law.

                  SECTION 15.2. PLAN ADMINISTRATOR.

                  There shall be a Plan Administrator, who shall be the Employee
Benefit Plans Committee, or such Employee or officer as may be designated by the
Committee, as hereinafter provided, and who shall, subject to the
responsibilities of the Committee and the Board, have the responsibility for the
day-to-day control, management, operation and administration of the Plan (except
trust duties). The Plan Administrator shall have the following responsibilities:

                  (a) To maintain records necessary or appropriate for the
         administration of the Plan;

                  (b) To give and receive such instructions, notices,
         information, materials, reports and certifications to the Trustee as
         may be necessary or appropriate in the administration of the Plan;

                  (c) To prescribe forms and make rules and regulations
         consistent with the terms of the Plan and with the interpretations and
         other actions of the Committee;

                  (d) To require such proof of age or evidence of good health of
         an Employee, Member or Former Member or the spouse of either, or of a
         Beneficiary as may be necessary or appropriate in the administration of
         the Plan;

                  (e) To prepare and file, distribute or furnish all reports,
         plan descriptions, and other information concerning the Plan,
         including, without limitation, filings with the Secretary of Labor and
         communications with Members, Former Members and other persons, as shall
         be required of the Plan Administrator under ERISA;

                                      -46-
<PAGE>

                  (f) To determine any question arising in connection with the
         Plan, and the Plan Administrator's decision or action in respect
         thereof shall be final and conclusive and binding upon the Employer,
         the Trustee, Members, Former Members, Beneficiaries and any other
         person having an interest under the Plan; provided, however, that any
         question relating to inconsistency or omission in the Plan, or
         interpretation of the provisions of the Plan, shall be referred to the
         Committee by the Plan Administrator and the decision of the Committee
         in respect thereof shall be final;

                  (g) Subject to the provisions of section 15.5, to review and
         dispose of claims under the Plan filed pursuant to section 15.4;

                  (h) If the Plan Administrator shall determine that by reason
         of illness, senility, insanity, or for any other reason, it is
         undesirable to make any payment to a Member, Former Member, Beneficiary
         or any other person entitled thereto, to direct the application of any
         amount so payable to the use or benefit of such person in any manner
         that he may deem advisable or to direct in his discretion the
         withholding of any payment under the Plan due to any person under legal
         disability until a representative competent to receive such payment in
         his behalf shall be appointed pursuant to law;

                  (i) To discharge such other responsibilities or follow such
         directions as may be assigned or given by the Committee or the Board;
         and

                  (j) To perform any duty or take any action which is allocated
         to the Plan Administrator under the Plan.

The Plan Administrator shall have the power and authority necessary or
appropriate to carry out his responsibilities. The Plan Administrator may resign
only by giving at least 30 days' prior written notice of resignation to the
Committee, and such resignation shall be effective on the date specified in such
notice.

                  SECTION 15.3. COMMITTEE RESPONSIBILITIES.

                  The Committee shall, subject to the responsibilities of the
Board, have the following responsibilities:

                  (a) To review the performance of the Plan Administrator;

                  (b) To hear and decide appeals, pursuant to the claims
         procedure contained in section 15.5 of the Plan, taken from the
         decisions of the Plan Administrator;

                  (c) To hear and decide questions, including interpretation of
         the Plan, as may be referred to the Committee by the Plan
         Administrator;

                                      -47-
<PAGE>

                  (d) To review the performance of the Trustee and such
         investment managers as may be appointed in or pursuant to the Trust
         Agreement in investing, managing and controlling the assets of the
         Plan;

                  (e) To the extent required by ERISA, to establish a funding
         policy and method consistent with the objectives of the Plan and the
         requirements of ERISA, and to review such policy and method at least
         annually;

                  (f) To report and make recommendations to the Board regarding
         changes in the Plan, including changes in the operation and management
         of the Plan and removal and replacement of the Trustee and such
         investment managers as may be appointed in or pursuant to the Trust
         Agreement;

                  (g) To designate an Alternate Plan Administrator to serve in
         the event that the Plan Administrator is absent or otherwise unable to
         discharge his responsibilities;

                  (h) To remove and replace the Plan Administrator or Alternate,
         or both of them, and to fill a vacancy in either office;

                  (i) To the extent provided under and subject to the provisions
         of the Trust Agreement, to appoint "investment managers" as defined in
         section 3(38) of ERISA to manage and control (including acquiring and
         disposing of) all or any of the assets of the Plan;

                  (j) With the prior approval of the Board, to direct the
         Trustee to obtain one or more Share Acquisition Loans;

                  (k) To develop and provide procedures and forms necessary to
         facilitate voting and tendering directions on a confidential basis;

                  (l) To discharge such other responsibilities or follow such
         directions as may be assigned or given by the Board; and

                  (m) To perform any duty or take any action which is allocated
         to the Committee under the Plan.

The Committee shall have the power and authority necessary or appropriate to
carry out its responsibilities.

                  SECTION 15.4. CLAIMS PROCEDURE.

         Any claim relating to benefits under the Plan shall be filed with the
Plan Administrator on a form prescribed by him. If a claim is denied in whole or
in part, the Plan Administrator shall give the claimant written notice of such
denial, which notice shall specifically set forth:

                                      -48-
<PAGE>

                  (a) The reasons for the denial;

                  (b) The pertinent Plan provisions on which the denial was
         based;

                  (c) Any additional material or information necessary for the
         claimant to perfect his claim and an explanation of why such material
         or information is needed; and

                  (d) An explanation of the Plan's procedure for review of the
         denial of the claim.

In the event that the claim is not granted and notice of denial of a claim is
not furnished by the 30th day after such claim was filed, the claim shall be
deemed to have been denied on that day for the purpose of permitting the
claimant to request review of the claim.

                  SECTION 15.5. CLAIMS REVIEW PROCEDURE.

                  Any person whose claim filed pursuant to section 15.4 has been
denied in whole or in part by the Plan Administrator may request review of the
claim by the Committee, upon a form prescribed by the Plan Administrator. The
claimant shall file such form (including a statement of his position) with the
Committee no later than 60 days after the mailing or delivery of the written
notice of denial provided for in section 15.4, or, if such notice is not
provided, within 60 days after such claim is deemed denied pursuant to section
15.4. The claimant shall be permitted to review pertinent documents. A decision
shall be rendered by the Committee and communicated to the claimant not later
than 30 days after receipt of the claimant's written request for review.
However, if the Committee finds it necessary, due to special circumstances (for
example, the need to hold a hearing), to extend this period and so notifies the
claimant in writing, the decision shall be rendered as soon as practicable, but
in no event later than 120 days after the claimant's request for review. The
Committee's decision shall be in writing and shall specifically set forth:

                  (a) The reasons for the decision; and

                  (b) The pertinent Plan provisions on which the decision is
         based.

Any such decision of the Committee shall be binding upon the claimant and the
Employer, and the Plan Administrator shall take appropriate action to carry out
such decision.

                  SECTION 15.6. ALLOCATION OF FIDUCIARY RESPONSIBILITIES AND
                                EMPLOYMENT OF ADVISORS.

                  Any Named Fiduciary may:

                  (a) Allocate any of his or its responsibilities (other than
         trustee responsibilities) under the Plan to such other person or
         persons as he or it may designate, provided that such allocation and
         designation shall be in writing and filed with the Plan Administrator;

                                      -49-
<PAGE>

                  (b) Employ one or more persons to render advice to him or it
         with regard to any of his or its responsibilities under the Plan; and

                  (c) Consult with counsel, who may be counsel to the Employer.

                  SECTION 15.7. OTHER ADMINISTRATIVE PROVISIONS.

                  (a) Any person whose claim has been denied in whole or in part
         must exhaust the administrative review procedures provided in section
         15.5 prior to initiating any claim for judicial review.

                  (b) No bond or other security shall be required of a member of
         the Committee, the Plan Administrator, or any officer or Employee of
         the Employer to whom fiduciary responsibilities are allocated by a
         Named Fiduciary, except as may be required by ERISA.

                  (c) Subject to any limitation on the application of this
         section 15.7(c) pursuant to ERISA, neither the Plan Administrator, nor
         a member of the Committee, nor any officer or Employee of the Employer
         to whom fiduciary responsibilities are allocated by a Named Fiduciary,
         shall be liable for any act of omission or commission by himself or by
         another person, except for his own individual willful and intentional
         malfeasance.

                  (d) The Plan Administrator or the Committee may, except with
         respect to actions under section 15.5, shorten, extend or waive the
         time (but not beyond 60 days) required by the Plan for filing any
         notice or other form with the Plan Administrator or the Committee, or
         taking any other action under the Plan.

                  (e) The Plan Administrator or the Committee may direct that
         the costs of services provided pursuant to section 15.6, and such other
         reasonable expenses as may be incurred in the administration of the
         Plan, shall be paid out of the funds of the Plan unless the Employer
         shall pay them.

                  (f) Any person, group of persons, committee, corporation or
         organization may serve in more than one fiduciary capacity with respect
         to the Plan.

                  (g) Any action taken or omitted by any fiduciary with respect
         to the Plan, including any decision, interpretation, claim denial or
         review on appeal, shall be conclusive and binding on all interested
         parties and shall be subject to judicial modification or reversal only
         to the extent it is determined by a court of competent jurisdiction
         that such action or omission was arbitrary and capricious and contrary
         to the terms of the Plan.

                                      -50-
<PAGE>

                                   ARTICLE XVI

                  AMENDMENT, TERMINATION AND TAX QUALIFICATION

                  SECTION 16.1. AMENDMENT AND TERMINATION BY HUDSON CITY SAVINGS
                                BANK

                  The Participating Employers expect to continue the Plan
indefinitely, but specifically reserve the right, in their sole discretion, at
any time, by appropriate action of their respective boards of directors or other
authorized officials, to amend, in whole or in part, any or all of the
provisions of the Plan and to terminate the Plan at any time. Subject to the
provisions of section 16.2, no such amendment or termination shall permit any
part of the Trust Fund to be used for or diverted to purposes other than for the
exclusive benefit of Members, Former Members, Beneficiaries or other persons
entitled to benefits, and no such amendment or termination shall reduce the
accrued benefit of any Member, Former Member, Beneficiary or other person who
may be entitled to benefits, without his consent. In the event of a termination
or partial termination of the Plan, or in the event of a complete discontinuance
of the Participating Employer's contributions to the Plan, the Accounts of each
affected person shall forthwith become nonforfeitable and shall be payable in
accordance with the provisions of Article XIII.

                  SECTION 16.2. AMENDMENT OR TERMINATION OTHER THAN BY HUDSON
                                CITY SAVINGS BANK

                  In the event that a corporation or trade or business other
than Hudson City Savings Bank shall adopt this Plan, such corporation or trade
or business shall, by adopting the Plan, empower Hudson City Savings Bank to
amend or terminate the Plan, insofar as it shall cover employees of such
corporation or trade or business, upon the terms and conditions set forth in
section 16.1; provided, however, that any such corporation or trade or business
may, by action of its board of directors or other governing body, amend or
terminate the Plan, insofar as it shall cover employees of such corporation or
trade or business, at different times and in a different manner. In the event of
any such amendment or termination by action of the board of directors or other
governing body of such a corporation or trade or business, a separate plan shall
be deemed to have been established for the employees of such corporation or
trade or business, and the assets of such plan shall be segregated from the
assets of this Plan at the earliest practicable date and shall be dealt with in
accordance with the documents governing such separate plan.

                  SECTION 16.3. CONFORMITY TO INTERNAL REVENUE CODE.

                  The Participating Employers have established the Plan with the
intent that the Plan and Trust will at all times be qualified under section
401(a) and exempt under section 501(a) of the Code and with the intent that
contributions under the Plan will be allowed as deductions in computing the net
income of the Participating Employers for federal income tax purposes, and the
provisions of the Plan and Trust Agreement shall be construed to effectuate such
intentions. Accordingly, notwithstanding anything to the contrary hereinbefore
provided, the Plan and the Trust Agreement may be amended at any time without
prior notice to Members, Former Members, Beneficiaries or any other persons
entitled to benefits, if such amendment is deemed by the Board to be necessary
or appropriate to effectuate such intent.

                                      -51-
<PAGE>

                  SECTION 16.4. CONTINGENT NATURE OF CONTRIBUTIONS.

                  (a) All Discretionary Contributions to the Plan are
         conditioned upon the issuance by the Internal Revenue Service of a
         determination that the Plan and Trust are qualified under section
         401(a) of the Code and exempt under section 501(a) of the Code. If the
         Participating Employers apply to the Internal Revenue Service for such
         a determination within 90 days after the date on which it files its
         federal income tax return for its taxable year that includes the last
         day of the Plan Year in which the Plan is adopted, and if the Internal
         Revenue Service issues a determination that the Plan and Trust are not
         so qualified or exempt, all Discretionary Contributions made by the
         Participating Employers prior to the date of receipt of such a
         determination may, at the election of the Participating Employers, be
         returned to the Participating Employers within one year after the date
         of such determination.

                  (b) All Discretionary Contributions and Loan Repayment
         Contributions to the Plan are made upon the condition that such
         Discretionary Contributions and Loan Repayment Contributions will be
         allowed as a deduction in computing the net income of the Employer for
         federal income tax purposes. To the extent that any such deduction is
         disallowed, the amount disallowed may, at the election of the
         Participating Employers, be returned to the Participating Employers
         within one year after the deduction is disallowed.

                  (c) Any contribution to the Plan made by the Participating
         Employers as a result of a mistake of fact may, at the election of the
         Participating Employers, be returned to the Participating Employers
         within one year after such contribution is made.

                                      -52-
<PAGE>

                                  ARTICLE XVII

                     SPECIAL RULES FOR TOP HEAVY PLAN YEARS

                  SECTION 17.1. IN GENERAL.

                  As of the Determination Date for each Plan Year, the Plan
Administrator shall determine whether the Plan is a Top Heavy Plan in accordance
with the provisions of this Article XVII. If, as of such Determination Date, the
Plan is a Top Heavy Plan, then the Plan Year immediately following such
Determination Date shall be a Top Heavy Plan Year and the special provisions of
this Article XVII shall be in effect; provided, however, that if, as of the
Determination Date for the Plan Year in which the Effective Date occurs, the
Plan is a Top Heavy Plan, such Plan Year shall be a Top Heavy Plan Year, and the
provisions of this Article XVII shall be given retroactive effect for such Plan
Year.

                  SECTION 17.2. DEFINITION OF TOP HEAVY PLAN.

                  (a) Subject to section 17.2(c), the Plan is a Top Heavy Plan
         if, as of a Determination Date: (i) it is not a member of a Required
         Aggregation Group, and (ii)(A) the sum of the Cumulative Accrued
         Benefits of all Key Employees exceeds 60% of (B) the sum of the
         Cumulative Accrued Benefits of all Employees (excluding former Key
         Employees), former Employees (excluding former Key Employees and other
         former Employees who have not performed any services for the Employer
         or any Affiliated Employer during the immediately preceding five Plan
         Years), and their Beneficiaries.

                  (b) Subject to section 17.2(c), the Plan is a Top Heavy Plan
         if, as of a Determination Date: (i) the Plan is a member of a Required
         Aggregation Group, and (ii)(A) the sum of the Cumulative Accrued
         Benefits of all Key Employees under all plans that are members of the
         Required Aggregation Group exceeds 60% of (B) the sum of the Cumulative
         Accrued Benefits of all Employees (excluding former Key Employees),
         former Employees (excluding former Key Employees and other former
         Employees who have not performed any services for the Employer or any
         Affiliated Employer during the immediately preceding five Plan Years),
         and their Beneficiaries under all plans that are members of the
         Required Aggregation Group.

                  (c) Notwithstanding sections 17.2(a) and 17.2(b), the Plan is
         not a Top Heavy Plan if, as of a Determination Date: (i) the Plan is a
         member of a Permissible Aggregation Group, and (ii)(A) the sum of the
         Cumulative Accrued Benefits of all Key Employees under all plans that
         are members of the Permissible Aggregation Group does not exceed 60% of
         (B) the sum of the Cumulative Accrued Benefits of all Employees
         (excluding former Key Employees), former Employees (excluding former
         Key Employees and other former Employees who have not performed any
         services for the Employer or any Affiliated Employer during the
         immediately preceding five Plan Years), and their Beneficiaries under
         all plans that are members of the Permissible Aggregation Group.

                                      -53-
<PAGE>

                  SECTION 17.3. DETERMINATION DATE.

                  The Determination Date for the Plan Year in which the
Effective Date occurs shall be the last day of such Plan Year, and the
Determination Date for each Plan Year beginning after the Plan Year in which the
Effective Date occurs shall be the last day of the preceding Plan Year. The
Determination Date for any other qualified plan maintained by the Employer for a
plan year shall be the last day of the preceding plan year of each such plan,
except that in the case of the first plan year of such plan, it shall be the
last day of such first plan year.

                  SECTION 17.4. CUMULATIVE ACCRUED BENEFITS.

                  (a) An individual's Cumulative Accrued Benefits under this
         Plan as of a Determination Date are equal to the sum of:

                  (i) the balance credited to such individual's Account under
         this Plan as of the most recent Valuation Date preceding the
         Determination Date;

                  (ii) the amount of any Discretionary Contributions or Loan
         Repayment Contributions made after such Valuation Date but on or before
         the Determination Date; and

                  (iii) the amount of any distributions of such individual's
         Cumulative Accrued Benefits under the Plan during the five year period
         ending on the Determination Date.

For purposes of this section 17.4(a), the computation of an individual's
Cumulative Accrued Benefits, and the extent to which distributions, rollovers
and transfers are taken into account, will be made in accordance with section
416 of the Code and the regulations thereunder.

                  (b) For purposes of this Plan, the term Cumulative Accrued
         Benefits with respect to any other qualified plan, shall mean the
         cumulative accrued benefits determined for purposes of section 416 of
         the Code under the provisions of such plans.

                  (c) For purposes of determining the top heavy status of a
         Required Aggregation Group or a Permissible Aggregation Group, the
         Cumulative Accrued Benefits under this Plan and the Cumulative Accrued
         Benefits under any other plan shall be determined as of the
         Determination Date that falls within the same calendar year as the
         Determination Dates for all other members of such Required Aggregation
         Group or Permissible Aggregation Group.

                  SECTION 17.5. KEY EMPLOYEES.

                  (a) For purposes of the Plan, the term Key Employee means any
         employee or former employee of the Employer or any Affiliated Employer
         who is at any time during the current Plan Year or was at any time
         during the immediately preceding four Plan Years:

                                      -54-
<PAGE>

                  (i) a Five Percent Owner;

                  (ii) a person who would be described in section 1.26 if the
         number "1%" were substituted for the number "5%" in section 1.26 and
         who has an annual Total Compensation from the Employer and any
         Affiliated Employer of more than $160,000;

                  (iii) an Officer of the Employer or any Affiliated Employer
         who has an annual Total Compensation greater than 50% of the amount in
         effect under section 415(b)(1)(A) of the Code for any such Plan Year;
         or

                  (iv) one of the ten persons owning the largest interests in
         the Employer and having an annual Total Compensation from the Employer
         or any Affiliated Employer in excess of the dollar limitation in effect
         under section 415(c)(1)(A) of the Code for such Plan Year.

                  (b) For purposes of section 17.5(a):

                  (i) for purposes of section 17.5(a)(iii), in the event the
         Employer or any Affiliated Employer has more officers than are
         considered Officers, the term Key Employee shall mean those officers,
         up to the maximum number, with the highest annual compensation in any
         one of the five consecutive Plan Years ending on the Determination
         Date; and

                  (ii) for purposes of section 17.5(a)(iv), if two or more
         persons have equal ownership interests in the Employer, each such
         person shall be considered as having a larger ownership interest than
         any such person with a lower annual compensation from the Employer or
         any Affiliated Employer.

                  (c) For purposes of section 17.5(a): (i) a person's
         compensation from Affiliated Employers shall be aggregated, but his
         ownership interests in Affiliated Employers shall not be aggregated;
         (ii) an employee shall only be deemed to be an officer if he has the
         power and responsibility of a person who is an officer within the
         meaning of section 416 of the Code; and (iii) the term Key Employee
         shall also include the Beneficiary of a deceased Key Employee.

                  SECTION 17.6. REQUIRED AGGREGATION GROUP.

                  For purposes of this Article XVII, a Required Aggregation
Group shall consist of (a) this Plan; (b) any other qualified plans currently
maintained (or previously maintained and terminated within the five year period
ending on the Determination Date) by any Affiliated Employers that cover Key
Employees; and (c) any other qualified plans currently maintained (or previously
maintained and terminated within the five year period ending on the
Determination Date) by any Affiliated Employers that cover Key Employees that
are required to be aggregated for purposes of satisfying the requirements of
sections 401(a)(4) or 410(b) of the Code.

                                      -55-
<PAGE>

                  SECTION 17.7. PERMISSIBLE AGGREGATION GROUP.

                  For purposes of this Article XVII, a Permissible Aggregation
Group shall consist of (a) the Required Aggregation Group and (b) any other
qualified plans maintained by the Employer and any Affiliated Employers;
provided, however, that the Permissible Aggregation Group must satisfy the
requirements of sections 401(a)(4) and 410(b) of the Code.

                  SECTION 17.8. SPECIAL REQUIREMENTS DURING TOP HEAVY PLAN
                                YEARS.

                  (a) Notwithstanding any other provision of the Plan to the
         contrary, for each Top Heavy Plan Year, in the case of a Participant
         (other than a Key Employee) on the last day of such Top Heavy Plan Year
         who is not also a participant in another qualified plan which satisfies
         the minimum contribution and benefit requirements of section 416 of the
         Code with respect to such Participant, the sum of the Discretionary
         Contributions and Loan Repayment Contributions made with respect to
         such Participant, when expressed as a percentage of his Total
         Compensation for such Top Heavy Plan Year, shall not be less than 3% of
         such Participant's Total Compensation for such Top Heavy Plan Year or,
         if less, the highest combined rate, expressed as a percentage of Total
         Compensation at which Discretionary Contributions and Loan Repayment
         Contributions were made on behalf of a Key Employee for such Top Heavy
         Plan Year. The Employer shall make an additional contribution to the
         Account of each Participant to the extent necessary to satisfy the
         foregoing requirement.

                  (b) For any Top Heavy Plan Year beginning before January 1,
         2000, the number "1.0" shall be substituted for the number "1.25" in
         sections 8.2(c)(iii) and 8.2(c)(iv), except that:

                  (i) this section 17.8(b) shall not apply to any individual for
         a Top Heavy Plan Year that is not a Super Top Heavy Plan Year if the
         requirements of section 17.8(a) would be satisfied for such Super Top
         Heavy Plan Year if the number "4%" were substituted for the number 3%
         in section 17.8(a); and

                  (ii) this section 17.8(b) shall not apply to an individual for
         a Top Heavy Plan Year if, during such Top Heavy Plan Year, there are no
         ESOP Contributions or Loan Repayment Contributions allocated to such
         individual under this Plan, there are no contributions under any other
         qualified defined contribution plan maintained by the Employer, and
         there are no accruals for such individual under any qualified defined
         benefit plan maintained by the Employer.

For purposes of this section 17.8(b), the term Super Top Heavy Plan Year means a
Top Heavy Plan Year in which the Plan would meet the definitional requirements
of sections 17.2(a) or 17.2(b) if the term "90%" were substituted for the term
"60%" in sections 17.2(a), 17.2(b) and 17.2(c).

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<PAGE>

                                  ARTICLE XVIII

                            MISCELLANEOUS PROVISIONS

                  SECTION 18.1. GOVERNING LAW.

                  The Plan 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 federal law.

                  SECTION 18.2. NO RIGHT TO CONTINUED EMPLOYMENT.

                  Neither the establishment of the Plan, nor any provisions of
the Plan or of the Trust Agreement establishing the Trust Fund nor any action of
the Plan Administrator, the Committee or the Trustee, shall be held or construed
to confer upon any Employee any right to a continuation of employment by any
Affiliated Employer. Each Affiliated Employer reserves the right to dismiss any
Employee or otherwise deal with any Employee to the same extent as though the
Plan had not been adopted.

                  SECTION 18.3. CONSTRUCTION OF LANGUAGE.

                  Wherever appropriate in the Plan, 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 and the neuter. Any reference to an Article or section number shall
refer to an Article or section of the Plan, unless otherwise indicated.

                  SECTION 18.4. HEADINGS.

                  The headings of Articles and sections are included solely for
convenience of reference. If there is any conflict between such headings and the
text of the Plan, the text shall control.

                  SECTION 18.5. MERGER WITH OTHER PLANS.

                  The Plan shall not be merged or consolidated with, nor
transfer its assets or liabilities to, any other plan unless each Member, Former
Member, Beneficiary and other person entitled to benefits, would (if that plan
then terminated) receive a benefit immediately after the merger, consolidation
or transfer which is equal to or greater than the benefit he would have been
entitled to receive if the Plan had terminated immediately before the merger,
consolidation or transfer.

                  SECTION 18.6. NON-ALIENATION OF BENEFITS.

                  (a) Except as provided in section 18.6(b) and (c), the right
         to receive a benefit under the Plan shall not be subject in any manner
         to anticipation, alienation or assignment, nor shall such right be
         liable for or subject to debts, contracts, liabilities or torts. Should
         any Member, Former Member or other person attempt to

                                      -57-
<PAGE>

      anticipate, alienate or assign his interest in or right to a benefit, or
      should any person claiming against him seek to subject such interest or
      right to legal or equitable process, all the interest or right of such
      Member or Former Member or other person entitled to benefits in the Plan
      shall cease, and in that event such interest or right shall be held or
      applied, at the direction of the Plan Administrator, for or to the benefit
      of such Member or Former Member, or other person or his spouse, children
      or other dependents in such manner and in such proportions as the Plan
      Administrator may deem proper.

            (b) This section 18.6 shall not prohibit the Plan Administrator from
      recognizing a Domestic Relations Order that is determined to be a
      Qualified Domestic Relations Order in accordance with section 18.7.

            (c) Notwithstanding anything in the Plan to the contrary, a
      Member's, Former Member's or Beneficiary's Accounts under the Plan may be
      offset by any amount such Member, Former Member or Beneficiary is required
      or ordered to pay to the Plan if:

            (i) the order or requirement to pay arises: (A) under a judgment
      issued on or after August 5, 1997 of conviction for a crime involving the
      Plan; (B) under a civil judgment (including a consent order or decree)
      entered by a court on or after August 5, 1997 in an action brought in
      connection with a violation (or alleged violation) of part 4 of subtitle B
      of title I of ERISA; or (C) pursuant to a settlement agreement entered
      into on or after August 5, 1997 between the Member, Former Member or
      Beneficiary and one or both of the United States Department of Labor and
      the Pension Benefit Guaranty Corporation in connection with a violation
      (or alleged violation) of part 4 of subtitle B of title I of ERISA by a
      fiduciary or any other person; and

            (ii) the judgment, order, decree or settlement agreement expressly
      provides for the offset of all or part of the amount ordered or required
      to be paid to the Plan against the Member's, Former Member's or
      Beneficiary's benefits under the Plan.

            SECTION 18.7. PROCEDURES INVOLVING DOMESTIC RELATIONS ORDERS.

            Upon receiving a Domestic Relations Order, the Plan Administrator
shall segregate in a separate account or in an escrow account or separately
account for the amounts payable to any person pursuant to such Domestic
Relations Order, pending a determination whether such Domestic Relations Order
constitutes a Qualified Domestic Relations Order, and shall give notice of the
receipt of the Domestic Relations Order to the Participant or Former Participant
and each other person affected thereby. If, within 18 months after receipt of
such Domestic Relations Order, the Plan Administrator, a court of competent
jurisdiction or another appropriate authority determines that such Domestic
Relations Order constitutes a Qualified Domestic Relations Order, the Plan
Administrator shall direct the Trustee to pay the segregated amounts (plus any
interest thereon) to the person or persons entitled thereto under the Qualified
Domestic Relations Order. If it is determined that the Domestic Relations Order
is not a Qualified Domestic Relations Order or  if no

                                      -58-

<PAGE>

determination is made within the prescribed 18-month period, the segregated
amounts shall be distributed as though the Domestic Relations Order had not been
received, and any later determination that such Domestic Relations Order
constitutes a Qualified Domestic Relations Order shall be applied only with
respect to benefits that remain undistributed on the date of such determination.
The Plan Administrator shall be authorized to establish such reasonable
administrative procedures as he deems necessary or appropriate to administer
this section 18.7. This section 18.7 shall be construed and administered so as
to comply with the requirements of section 401(a)(13) of the Code.

            SECTION 18.8. LEASED EMPLOYEES.

            (a) Subject to section 18.8(b), a leased employee shall be treated
      as an Employee for purposes of the Plan. For purposes of this section
      18.8, the term "leased employee" means any person (i) who would not, but
      for the application of this section 18.8, be an Employee and (ii) who
      pursuant to an agreement between an Affiliated Employer and any other
      person ("leasing organization") has performed for the Affiliated Employer
      (or for the Affiliated Employer and related persons determined in
      accordance with section 414(n)(6) of the Code), on a substantially
      full-time basis for a period of at least one year, services of a type
      historically performed by employees in the business field of the Employer
      under the primary direction or control of an Affiliated Employer.

            (b) For purposes of the Plan:

            (i) contributions or benefits provided to the leased employee by the
      leasing organization which are attributable to services performed for the
      Employer shall be treated as provided by the Employer; and

            (ii) section 18.8(a) shall not apply to a leased employee if:

                  (A) the number of leased employees performing services for the
            Employer does not exceed 20% of the number of the Employer's
            Employees who are not Highly Compensated Employees; and

                  (B) such leased employee is covered by a money purchase
            pension plan providing (I) a nonintegrated contribution rate of at
            least 10% of the leased employee's compensation; (II) immediate
            participation; (III) full and immediate vesting; and (IV) coverage
            for all of the employees of the leasing organization (other than
            employees who perform substantially all of their services for the
            leasing organization).

            SECTION 18.9. STATUS AS AN EMPLOYEE STOCK OWNERSHIP PLAN.

            It is intended that the Plan constitute an "employee stock ownership
plan," as defined in section 4975(e)(7) of the Code and section 407(d)(6) of
ERISA. The Plan shall be construed and administered to give effect to such
intent.

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