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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, 5 [and 6]




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TABLE OF CONTENTS
 PageArticle IDefinitionsSection 1.1.
    
    Account
    
    
    1Section 1.2.
    
    Affiliated Employer
    
    
    1Section 1.3.
    
    Allocation Compensation
    
    
    1Section 1.4.
    
    Bank
    
    
    2Section 1.5.
    
    Board
    
    
    2Section 1.6.
    
    Beneficiary
    
    
    2Section 1.7.
    
    Break in Service
    
    
    2Section 1.8.
    
    Change in Control
    
    
    2Section 1.9.
    
    Code
    
    
    2Section 1.10.
    
    Committee
    
    
    2Section 1.11.
    
    Designated Beneficiary
    
    
    2Section 1.12.
    
    Disability
    
    
    3Section 1.13.
    
    Discretionary Contribution
    
    
    3Section 1.14.
    
    Domestic Relations Order
    
    
    3Section 1.15.
    
    Eligibility Computation Period
    
    
    4Section 1.16.
    
    Effective Date
    
    
    4Section 1.17.
    
    Eligible Employee
    
    
    4Section 1.18.
    
    Eligible Member
    
    
    4Section 1.19.
    
    Employee
    
    
    4Section 1.20.
    
    Employment Commencement Date
    
    
    4Section 1.21.
    
    Employment Recommencement Date
    
    
    4Section 1.22.
    
    ERISA
    
    
    4Section 1.23.
    
    Exchange Act
    
    
    4Section 1.24.
    
    Fair Market Value
    
    
    4Section 1.25.
    
    Financed Share
    
    
    5Section 1.26.
    
    Five Percent Owner
    
    
    5Section 1.27.
    
    Forfeitures
    
    
    5Section 1.28.
    
    Former Member
    
    
    5Section 1.29.
    
    General Investment
    
    
    5Section 1.30.
    
    Highly Compensated Employee
    
    
    5Section 1.31.
    
    Hour of Service
    
    
    6Section 1.32.
    
    Investment Account
    
    
    6Section 1.33.
    
    Investment Fund
    
    
    7Section 1.34.
    
    Loan Repayment Account
    
    
    7Section 1.35.
    
    Loan Repayment Contribution
    
    
    7Section 1.36.
    
    Maternity or Paternity Leave
    
    
    7Section 1.37.
    
    Member
    
    
    7Section 1.38.
    
    Military Service
    
    
    7
 (i)




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PageSection 1.39.
    
    Named Fiduciary
    
    
    7Section 1.40.
    
    Officer
    
    
    7Section 1.41.
    
    One-Year Break in Service
    
    
    7Section 1.42.
    
    Participating Employer
    
    
    7Section 1.43.
    
    Period of Service
    
    
    7Section 1.44.
    
    Period of Severance
    
    
    8Section 1.45.
    
    Plan
    
    
    8Section 1.46.
    
    Plan Administrator
    
    
    8Section 1.47.
    
    Plan Year
    
    
    8Section 1.48.
    
    Qualified Domestic Relations Order
    
    
    8Section 1.49.
    
    Qualified Military Service
    
    
    8Section 1.50.
    
    Qualified Participant
    
    
    9Section 1.51.
    
    Retirement
    
    
    9Section 1.52.
    
    Retroactive Contribution
    
    
    9Section 1.53.
    
    Share
    
    
    9Section 1.54.
    
    Share Acquisition Loan
    
    
    9Section 1.55.
    
    Share Investment Account
    
    
    9Section 1.56.
    
    Tender Offer
    
    
    9Section 1.57.
    
    Total Compensation
    
    
    9Section 1.58.
    
    Trust
    
    
    9Section 1.59.
    
    Trust Agreement
    
    
    10Section 1.60.
    
    Trust Fund
    
    
    10Section 1.61.
    
    Trustee
    
    
    10Section 1.62.
    
    Valuation Date
    
    
    10Section 1.63.
    
    Year of Eligibility Service
    
    
    10Section 1.64.
    
    Year of Vesting Service
    
    
    10Article IIMembershipSection 2.1.
    
    Eligibility for Membership
    
    
    11Section 2.2.
    
    Commencement of Membership
    
    
    11Section 2.3.
    
    Termination of Membership
    
    
    12Section 2.4.
    
    Adjustments to Period of Service
    
    
    12Article IIISpecial ProvisionsSection 3.1.
    
    Military Service
    
    
    13Section 3.2.
    
    Maternity or Paternity Leave
    
    
    13Section 3.3.
    
    Leave of Absence
    
    
    14Section 3.4.
    
    Transfer Between Full-time Status and Part-time Status
    
    
    14
 (ii)




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PageArticle IVContributions by Members Not PermittedSection 4.1.
    
    Contributions by Members Not Permitted
    
    
    15Article VContributions by the EmployerSection 5.1.
    
    In General
    
    
    16Section 5.2.
    
    Loan Repayment Contributions
    
    
    16Section 5.3.
    
    Discretionary Contributions
    
    
    16Section 5.4.
    
    Retroactive Contributions
    
    
    17Section 5.5.
    
    Time and Manner of Payment
    
    
    17Article VIShare Acquisition LoansSection 6.1.
    
    In General
    
    
    19Section 6.2.
    
    Collateral; Liability for Repayment
    
    
    19Section 6.3.
    
    Loan Repayment Account
    
    
    20Section 6.4.
    
    Release of Financed Shares
    
    
    20Section 6.5.
    
    Restrictions on Financed Shares
    
    
    21Article VIIAllocation of ContributionsSection 7.1.
    
    Allocation Among Eligible Members
    
    
    22Section 7.2.
    
    Allocation of Released Shares or Other Property
    
    
    22Section 7.3.
    
    Allocation of Discretionary Contributions
    
    
    22Article VIIILimitations on AllocationsSection 8.1.
    
    Optional Limitations on Allocations
    
    
    23Section 8.2.
    
    General Limitations on Contributions
    
    
    23Article IXVestingSection 9.1.
    
    Vesting
    
    
    28Section 9.2.
    
    Vesting on Death, Disability, Retirement or Change in Control
    
    
    28Section 9.3.
    
    Forfeitures on Termination of Employment
    
    
    28
 (iii)




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PageSection 9.4.
    
    Amounts Credited Upon Re-employment
    
    
    29Section 9.5.
    
    Allocation of Forfeitures
    
    
    29Article Xthe Trust FundSection 10.1.
    
    The Trust Fund
    
    
    30Section 10.2.
    
    Investments
    
    
    30Section 10.3.
    
    Distributions For Diversification of Investments
    
    
    30Section 10.4.
    
    Use of Commingled Trust Funds
    
    
    31Section 10.5.
    
    Management And Control of Assets
    
    
    32Article XIValuation of Interests in the Trust FundSection 11.1.
    
    Establishment of Investment Accounts
    
    
    33Section 11.2.
    
    Share Investment Accounts
    
    
    33Section 11.3.
    
    General Investment Accounts
    
    
    33Section 11.4.
    
    Valuation of Investment Accounts
    
    
    33Section 11.5.
    
    Annual Statements
    
    
    34Article XIISharesSection 12.1.
    
    Specific Allocation of Shares
    
    
    35Section 12.2.
    
    Dividends
    
    
    35Section 12.3.
    
    Voting Rights
    
    
    35Section 12.4.
    
    Tender Offers
    
    
    37Article XIIIPayment of BenefitsSection 13.1.
    
    In General
    
    
    39Section 13.2.
    
    Designation of Beneficiaries
    
    
    39Section 13.3.
    
    Distributions to Members
    
    
    40Section 13.4.
    
    Manner of Payment
    
    
    41Section 13.5.
    
    Minimum Required Distributions
    
    
    41Section 13.6.
    
    Direct Rollover of Eligible Rollover Distributions
    
    
    43Section 13.7.
    
    Valuation of Shares Upon Distribution
    
    
    44Section 13.8.
    
    Put Options
    
    
    44Section 13.9.
    
    Right of First Refusal
    
    
    45
 (iv)




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PageArticle XIVChange in ControlSection 14.1.
    
    Definition of Change in Control; Pending Change in Control
    
    
    50Section 14.2.
    
    Vesting on Change of Control
    
    
    52Section 14.3.
    
    Repayment of Share Acquisition Loan
    
    
    52Section 14.4.
    
    Plan Termination After Change in Control
    
    
    52Section 14.5.
    
    Amendment of Section XIV
    
    
    52Article XVAdministrationSection 15.1.
    
    Named Fiduciaries
    
    
    53Section 15.2.
    
    Plan Administrator
    
    
    53Section 15.3.
    
    Committee Responsibilities
    
    
    54Section 15.4.
    
    Claims Procedure
    
    
    56Section 15.5.
    
    Claims Review Procedure
    
    
    56Section 15.6.
    
    Allocation of Fiduciary Responsibilities and Employment of Advisors
    
    
    57Section 15.7.
    
    Other Administrative Provisions
    
    
    57Article XVIAmendment, Termination and Tax QualificationSection 16.1.
    
    Amendment and Termination by Hudson City Savings Bank
    
    
    59Section 16.2.
    
    Amendment or Termination Other Than by Hudson City Savings Bank
    
    
    59Section 16.3.
    
    Conformity to Internal Revenue Code
    
    
    59Section 16.4.
    
    Contingent Nature of Contributions
    
    
    60Article XVIISpecial Rules for Top Heavy Plan YearsSection 17.1.
    
    In General
    
    
    61Section 17.2.
    
    Definition of Top Heavy Plan
    
    
    61Section 17.3.
    
    Determination Date
    
    
    62Section 17.4.
    
    Cumulative Accrued Benefits
    
    
    62Section 17.5.
    
    Key Employees
    
    
    63Section 17.6.
    
    Required Aggregation Group
    
    
    64Section 17.7.
    
    Permissible Aggregation Group
    
    
    64Section 17.8.
    
    Special Requirements During Top Heavy Plan Years
    
    
    64
 (v)




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PageArticle XVIIIMiscellaneous ProvisionsSection 18.1.
    
    Governing Law
    
    
    66Section 18.2.
    
    No Right to Continued Employment
    
    
    66Section 18.3.
    
    Construction of Language
    
    
    66Section 18.4.
    
    Headings
    
    
    66Section 18.5.
    
    Merger With Other Plans
    
    
    66Section 18.6.
    
    Non-alienation of Benefits
    
    
    66Section 18.7.
    
    Procedures Involving Domestic Relations Orders
    
    
    67Section 18.8.
    
    Leased Employees
    
    
    68Section 18.9.
    
    Status as an Employee Stock Ownership Plan
    
    
    69
 (vi)




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Employee Stock Ownership Plan
 Of
 Hudson City Savings Bank
 Article I
 Definitions
  Section 1.1. Account
 Section 1.2. Affiliated Employer
 Section 1.3. Allocation Compensation




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Section 1.4. Bank
 Section 1.5. Board
 Section 1.6. Beneficiary
 Section 1.7. Break in Service
 Section 1.8. Change in Control
 Section 1.9. Code
 Section 1.10. Committee
 Section 1.11. Designated Beneficiary
 2




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Section 1.12. Disability
 Section 1.13. Discretionary Contribution
 Section 1.14. Domestic Relations Order
 3




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Section 1.15. Eligibility Computation Period
 Section 1.16. Effective Date
 Section 1.17. Eligible Employee
 Section 1.18. Eligible Member provided however
 Section 1.19. Employee
 Section 1.20. Employment Commencement Date
 Section 1.21. Employment Recommencement Date
 Section 1.22. ERISA
 Section 1.23. Exchange Act
 Section 1.24. Fair Market Value
   4




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Section 1.25. Financed Share
 Section 1.26. Five Percent Owner
 Section 1.27. Forfeitures
 Section 1.28. Former Member
 Section 1.29. General Investment
 Section 1.30. Highly Compensated Employee
  5




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Section 1.31. Hour of Service
  provided, however provided, further
  Section 1.32. Investment Account
 6




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Section 1.33. Investment Fund
 Section 1.34. Loan Repayment Account
 Section 1.35. Loan Repayment Contribution
 Section 1.36. Maternity or Paternity Leave
 Section 1.37. Member
 Section 1.38. Military Service
 Section 1.39. Named Fiduciary
 Section 1.40. Officer provided however
 Section 1.41. One-Year Break in Service
 Section 1.42. Participating Employer
 Section 1.43. Period of Service
 7




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Section 1.44. Period of Severance
    Section 1.45. Plan
 Section 1.46. Plan Administrator
 Section 1.47. Plan Year
 Section 1.48. Qualified Domestic Relations Order
 Section 1.49. Qualified Military Service
 8




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Section 1.50. Qualified Participant
 Section 1.51. Retirement
 Section 1.52. Retroactive Contribution
 Section 1.53. Share
 Section 1.54. Share Acquisition Loan
 Section 1.55. Share Investment Account
 Section 1.56. Tender Offer
 Section 1.57. Total Compensation
 Section 1.58. Trust
 9




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Section 1.59. Trust Agreement
 Section 1.60. Trust Fund
 Section 1.61. Trustee
 Section 1.62. Valuation Date
 Section 1.63. Year of Eligibility Service
 Section 1.64. Year of Vesting Service
 10




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Article II
 Membership
 Section 2.1. Eligibility for Membership.
           Section 2.2. Commencement of Membership.
  11




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Section 2.3. Termination of Membership.
  Section 2.4. Adjustments to Period of Service.
       12




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Article III
 Special Provisions
 Section 3.1. Military Service.
      Section 3.2. Maternity or Paternity Leave.
    13




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Section 3.3. Leave of Absence.
  Section 3.4. Transfer Between Full-time Status and Part-time Status.
   14




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Article IV
 Contributions by Members Not Permitted
 Section 4.1. Contributions by Members Not Permitted.
  15




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Article V
 Contributions by the Employer
 Section 5.1. In General.
  Section 5.2. Loan Repayment Contributions.
     Section 5.3. Discretionary Contributions.
  16




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Section 5.4. Retroactive Contributions.
     Section 5.5. Time and Manner of Payment.
   17




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18




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Article VI
 Share Acquisition Loans
 Section 6.1. In General.
     provided however
 Section 6.2. Collateral; Liability for Repayment.
      19




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Section 6.3. Loan Repayment Account.
  Section 6.4. Release of Financed Shares.
   20




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provided however
 provided however
 Section 6.5. Restrictions on Financed Shares.
  21




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Article VII
 Allocation of Contributions
 Section 7.1. Allocation Among Eligible Members.
  Section 7.2. Allocation of Released Shares or Other Property.
  Section 7.3. Allocation of Discretionary Contributions.
  22




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Article VIII
 Limitations on Allocations
 Section 8.1. Optional Limitations on Allocations.
  Section 8.2. General Limitations on Contributions.
    provided however
 23




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24




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25




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provided however
    26




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27




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Article IX
 Vesting
 Section 9.1. Vesting.
  Years of
    
    VestedVesting Service
    
    Percentageless 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
    %
 Section 9.2. Vesting on Death, Disability, Retirement or Change in Control.
  Section 9.3. Forfeitures on Termination of Employment.
  28




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Section 9.4. Amounts Credited Upon Re-employment.
    Section 9.5. Allocation of Forfeitures.
  29




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Article X
 the Trust Fund
 Section 10.1. The Trust Fund.
  Section 10.2. Investments.
     provided however
 Section 10.3. Distributions For Diversification of Investments.
   30




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Section 10.4. Use of Commingled Trust Funds.
  31




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Section 10.5. Management And Control of Assets.
  32




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Article XI
 Valuation of Interests in the Trust Fund
 Section 11.1. Establishment of Investment Accounts.
  Section 11.2. Share Investment Accounts.
  Section 11.3. General Investment Accounts.
  Section 11.4. Valuation of Investment Accounts.
   33




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Section 11.5. Annual Statements.
  34




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Article XII
 Shares
 Section 12.1. Specific Allocation of Shares.
  Section 12.2. Dividends.
  provided however
 Section 12.3. Voting Rights.
  35




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36




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Section 12.4. Tender Offers.
    37




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38




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Article XIII
 Payment of Benefits
 Section 13.1. In General.
  Section 13.2. Designation of Beneficiaries.
      39




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Section 13.3. Distributions to Members.
 provided however
  40




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Section 13.4. Manner of Payment.
  Section 13.5. Minimum Required Distributions.
  1 2 1 2
 1 2 1 2 1 2
   41




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1 2 1 2 1 2
  42




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Section 13.6. Direct Rollover of Eligible Rollover Distributions.
         43




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Section 13.7. Valuation of Shares Upon Distribution.
  Section 13.8. Put Options.
  44




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Section 13.9. Right of First Refusal.
    45




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Section 13.10 Automatic Rollover of Certain Payments .
   46




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i.e.
  47




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i.e.
    48




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49




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Article XIV
 Change in Control
 Section 14.1. Definition of Change in Control; Pending Change in Control.
       50




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51




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Section 14.2. Vesting on Change of Control.
  Section 14.3. Repayment of Share Acquisition Loan.
  Section 14.4. Plan Termination After Change in Control.
  Section 14.5. Amendment of Section XIV.
  52




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Article XV
 Administration
 Section 15.1. Named Fiduciaries.
  Section 15.2. Plan Administrator.
       53




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provided however
      Section 15.3. Committee Responsibilities.
    54




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55




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Section 15.4. Claims Procedure.
       Section 15.5. Claims Review Procedure.
     56




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Section 15.6. Allocation of Fiduciary Responsibilities and Employment of Advisors.
     Section 15.7. Other Administrative Provisions.
       57




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58




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Article XVI
 Amendment, Termination and Tax Qualification
 Section 16.1. Amendment and Termination by Hudson City Savings Bank.
  Section 16.2. Amendment or Termination Other Than by Hudson City Savings Bank.
 provided however
 Section 16.3. Conformity to Internal Revenue Code.
  59




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Section 16.4. Contingent Nature of Contributions.
    60




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Article XVII
 Special Rules for Top Heavy Plan Years
 Section 17.1. In General.
 provided however
 Section 17.2. Definition of Top Heavy Plan.
    61




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Section 17.3. Determination Date.
  Section 17.4. Cumulative Accrued Benefits.
      62




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Section 17.5. Key Employees.
        63




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Section 17.6. Required Aggregation Group.
  Section 17.7. Permissible Aggregation Group.
 provided however
 Section 17.8. Special Requirements During Top Heavy Plan Years.
  64




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65




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Article XVIII
 Miscellaneous Provisions
 Section 18.1. Governing Law.
  Section 18.2. No Right to Continued Employment.
  Section 18.3. Construction of Language.
  Section 18.4. Headings.
  Section 18.5. Merger With Other Plans.
  Section 18.6. Non-alienation of Benefits.
  66




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Section 18.7. Procedures Involving Domestic Relations Orders.
  67




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Section 18.8. Leased Employees.
       68




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Section 18.9. Status as an Employee Stock Ownership Plan.
  69