Document:

Exhibit 10.60

                              SETTLEMENT AGREEMENT

      This Agreement, having an effective date of May 15, 2002, is between (a)
Medtronic, Inc., a Minnesota Corporation having its principal place of business
at 710 Medtronic Parkway, N.E., Minneapolis, Minnesota 55432, on behalf of
itself and as owner, directly or indirectly, of Medtronic Sofamor Danek, Inc.
(formerly known as Sofamor Danek Group, Inc.), Sofamor Danek Holdings, Inc.,
Medtronic Sofamor Danek USA, Inc., SDGI Holdings, Inc., and Sofamor Danek L.P.
(hereinafter referred to collectively as "Medtronic"); and (b) Osteotech, Inc.,
a Delaware corporation having its principal place of business at 51 James Way,
Eatontown, New Jersey 07724 (hereinafter referred to as "Osteotech").

      WHEREAS United States Patent No. 5,741,253 ("the '253 patent") issued to
Dr. Gary Karlin Michelson with claims covering certain methods for performing
spinal surgery; United States Patent No. 5,484,437 ("the '437 patent") issued to
Dr. Michelson with claims covering certain methods for performing spinal
surgery; and United States Patent No. 6,096,038 ("the '038 patent") issued to
Dr. Michelson with claims covering certain instruments for performing spinal
surgery;

      WHEREAS the '253, '437, and '038 patents are assigned to Medtronic;

      WHEREAS the '253, '437, and '038 patents are the subject of an action
entitled Medtronic Sofamor Danek, Inc., Sofamor Danek Holdings, Inc., Medtronic
Sofamor Danek USA, Inc., SDGI Holdings, Inc., and Sofamor Danek L.P. v.
Osteotech, Inc., Civ. No. 99-2656 GV (W.D. Tennessee), in which Medtronic has
asserted that Osteotech infringes certain claims of the '253, '437, and '038
patents and Osteotech has counterclaimed for a declaration that the '253, '437,
and '038 patents are invalid, unenforceable and not infringed (hereinafter
referred to as "the Tennessee Action");

      WHEREAS United States Patent Nos. 5,814,084, 4,950,296, and 6,096,081
("the '084, '296, and '081 patents," collectively) are the subject of an action
entitled University of Florida Tissue Bank, Inc., Regeneration Technologies,
Inc., Sofamor Danek Group, Inc., and Sofamor Danek L.P. v. Osteotech, Inc.,
Civil Action No. 99CV33 MMP, pending in the United States District Court for the
Northern District of Florida, in which Medtronic has asserted that Osteotech
infringes certain claims of the '084, '296, and '081 patents (hereinafter
referred to as "the Florida Action"); and

      WHEREAS the parties hereto, to avoid further expenditure of financial,
managerial and other resources, wish to resolve their disputes with finality;
and

      NOW, THEREFORE, in consideration of the foregoing and the mutual covenants
and undertakings set forth herein, the parties to this Settlement Agreement
agree as follows:

I.    DEFINITIONS

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      A.    "Patents-in-Suit in Tennessee" means the '253, '437, and '038
            patents, which are at issue in the Tennessee Action, and all United
            States and foreign counterpart patents (including divisions,
            continuations, continuations-in-part, reissues, reexaminations and
            all other variations) and all other patents issuing anywhere in the
            world that claim the benefit of priority to either of the '253,
            '437, and '038 patents.

      B.    "Patents-in-Suit in Florida" means the '084, '296, and '081 patents,
            which are at issue in the Florida Action, and all United States and
            foreign counterpart patents (including divisions, continuations,
            continuations-in-part, reissues, reexaminations and all other
            variations) and all other patents issuing anywhere in the world that
            claim the benefit of priority to either of the '084, '296, and '081
            patents.

      C.    "Off the Market" means that Osteotech is not, after the designated
            date, taking or filling orders, selling or otherwise receiving
            revenue for (other than revenue for product delivered prior to
            February 1, 2003 on standard payment terms per account as of the
            date of this agreement, with all new accounts established after
            April 24, 2002, not to exceed thirty (30) days net terms, provided
            that nothing herein shall affect Osteotech's right to later collect
            on any account), loaning, consigning, promoting, advertising,
            marketing, distributing or processing the product or the related
            instruments and methods.

      D.    "The Litigation" means the Tennessee and Florida Actions
            collectively.

II.   JUDGMENT

      A.    Simultaneously with the execution of this Settlement Agreement, the
            parties to this Settlement Agreement shall enter into a Consent
            Judgment with respect to the Tennessee Action, in the form of
            Exhibit A annexed hereto (which may be modified only if necessary to
            accord with local practice or requirements of the Court), by which
            Osteotech stipulates to an injunction against infringement,
            including direct infringement, active inducement of infringement and
            contributory infringement of any of the claims of the '253, '437, or
            '038 patents for the duration of the term of each such patent, with
            each party to the Settlement Agreement to pay its own costs and
            attorney fees.

      B.    Simultaneously with the execution of this Settlement Agreement, the
            parties to this Settlement Agreement shall enter into a Consent
            Judgment with respect to the Florida Action, in the form of Exhibit
            B annexed hereto (which may be modified only if necessary to accord
            with local practice or requirements of the Court), with each party
            to this Settlement Agreement to pay its own costs and attorney fees.

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<PAGE>

III.  PAYMENT

      A.    Osteotech will pay Medtronic $1,900,000 in 24 equal monthly payments
            of $79,166.67 each, commencing May 15, 2002, and payable on the 15th
            day of each month, or if not a business day then on the next
            business day thereafter, without interest except as hereinafter
            provided (each a "Monthly Payment"). Osteotech shall have the right
            to prepay the amounts owing hereunder to Medtronic in whole or in
            part from time to time without premium or penalty.

      B.    In the event Osteotech fails to make a Monthly Payment when due and
            such failure continues for 10 days after Medtronic has given
            Osteotech written notice of such failure, interest shall be due on
            the then outstanding balance, accruing from May 15, 2002, including
            each overdue payment, calculated at a rate equal to 5% per annum,
            based on the number of days elapsed in a 365-day year.

      C.    In the event Osteotech fails to make a Monthly Payment when due and
            such failure continues for 10 days after Medtronic has given
            Osteotech written notice of such failure, Medtronic shall have the
            right, without further notice, to declare the entire aggregate
            amount of all remaining Monthly Payments, and all interest due
            thereon, immediately due and payable, and to present a drawing on
            the Letter of Credit described below in paragraph D in the aggregate
            accelerated amount.

      D.    Osteotech's obligation to make the Monthly Payments (whether on the
            stated due date or if the maturity has been declared due and
            accelerated), and any interest due thereon, will be backed by an
            irrevocable letter of credit issued by Fleet National Bank ("the
            Issuer") for the account of Osteotech and for the benefit of
            Medtronic Inc. in the form of Exhibit C annexed hereto (the "Letter
            of Credit").

      E.    If Medtronic presents an affidavit to Osteotech and Fleet National
            Bank testifying that the Letter of Credit has been lost, stolen, or
            destroyed and that Medtronic has exercised due diligence searching
            for the Letter of Credit, and Medtronic indemnifies or provides
            objectively satisfactory security to Osteotech and the Issuer,
            Osteotech will request that the Issuer issue a replacement Letter of
            Credit (marked as a Replacement Letter of Credit) to Medtronic. If
            Medtronic presents an affidavit to Osteotech and Fleet National Bank
            testifying that the Letter of Credit has been mutilated, accompanied
            by the mutilated Letter of Credit, Osteotech will request that the
            Issuer issue a replacement Letter of Credit (marked as a Replacement
            Letter of Credit) to Medtronic.

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<PAGE>

      F.    If, for any reason, the Letter of Credit or Replacement Letter of
            Credit is found void by any court, or fails to fully compensate
            Medtronic as intended by this settlement, Osteotech may, within 10
            days of written notice of such event, pay in full any remaining
            unpaid amounts under this Agreement. If Osteotech fails to pay in
            full any remaining unpaid amounts under this Agreement within 10
            days of written notice of such event, Medtronic may, at its sole
            option, void this settlement and any covenant not to sue, release or
            other obligation on its part under this settlement.

      G.    In the event Osteotech prepays the amount due Medtronic under this
            Section III, Medtronic shall cause the original Letter of Credit,
            together with any amendments, to be delivered promptly to Osteotech,
            together with a written statement that Osteotech has fully satisfied
            the payment terms of the Settlement Agreement and that the Letter of
            Credit may be terminated.

IV.   RELEASES, COVENANTS, AND OBLIGATIONS

      In consideration for the Consent Judgments and payments set forth above,
the parties to this Agreement agree to the following releases, covenants, and
obligations:

      A.    Medtronic does hereby release, acquit and discharge Osteotech, its
            affiliates, predecessors, successors, assigns, directors, officers,
            employees, and agents from any claims, demands, actions or causes of
            action that Medtronic made or may have made under the
            Patents-in-Suit in Tennessee and Florida relating to any Osteotech
            product, instrument, or method accused of infringement in the
            Litigation through April 24, 2002.

      B.    Medtronic hereby grants Osteotech a conditional covenant not to sue
            Osteotech for infringement under any patent relating to spinal
            interbody implants until January 31, 2003, provided that Osteotech
            complies with all other terms and conditions of this Settlement
            Agreement. If Osteotech fails to comply with all terms and
            conditions herein, the covenant is null and void from the outset.

      C.    If Osteotech complies with all the terms and conditions of this
            Settlement Agreement that Osteotech is obliged to comply with or
            fulfill on or before February 15, 2003, Medtronic will deliver to
            Osteotech by February 28, 2003, a release through January 31, 2003
            for all claims of patent infringement by the products, instruments
            and methods accused of infringement in the Tennessee and/or Florida
            Actions under any patent owned by or licensed to Medtronic. The
            release to be delivered by Medtronic shall be in the form of Exhibit
            D annexed hereto.

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<PAGE>

      D.    Medtronic will not voluntarily join with any other person or entity
            pursuing an action against Osteotech that is covenanted against or
            released by the terms of this Settlement Agreement. An action is
            covenanted against hereunder if the covenant is in full force and
            effect and has not become void as provided herein. An action is
            released hereunder if such release has been delivered to Osteotech
            and has not become void as provided herein.

      E.    Osteotech acknowledges that Medtronic cannot control the action of
            any other person or entity (except those persons and entities
            controlled or directly or indirectly owned by Medtronic) nor can it
            preclude the possibility that it may be involuntarily joined into
            such action, which would not be contrary to the terms of this
            Settlement Agreement. Enforcement of this Settlement Agreement,
            whether undertaken by Medtronic alone or in conjunction with any
            other person or entity, would not be contrary to this Settlement
            Agreement.

      F.    Medtronic agrees: (a) to discontinue its participation in the
            Florida Action; (b) neither to fund nor to voluntarily assist
            Regeneration Technologies Inc. ("RTI") or any other party to
            continue to pursue the Florida Action against Osteotech (provided
            that any purchase or sale by Medtronic of securities of RTI or other
            commercial transactions between Medtronic and RTI shall not
            constitute funding or assistance); and (c) to contact RTI, inform it
            of the terms of this settlement and give it Medtronic's
            recommendation to accept these terms in complete resolution of the
            Florida Action. Osteotech acknowledges that Medtronic has already
            completed Step (c).

      G.    Osteotech acknowledges that Medtronic has no control over what
            actions RTI or any other person (except those persons and entities
            controlled or directly or indirectly owned by Medtronic) may take,
            nor can Medtronic preclude the possibility that it may be required
            to provide involuntary assistance to RTI or another person by court
            order or subpoena.

      H.    Osteotech further acknowledges that the continuance by Medtronic's
            counsel of any representation of RTI or any other party in pursuing
            the Florida Action, without funding or voluntary assistance by
            Medtronic, would not be contrary to the terms of this Settlement
            Agreement.

      I.    Osteotech does hereby release, acquit and discharge Medtronic, its
            affiliates, predecessors, successors, assigns, directors, officers,
            employees and agents from any claims, demands, actions, or causes of
            action that Osteotech made or may have made related to the
            Patents-in-suit in the Tennessee or Florida Actions or relating to
            the products, instruments and methods accused of infringement in the
            Tennessee or Florida Actions through April 24, 2002.

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<PAGE>

      J.    Osteotech reserves all claims and defenses it may have in the
            Florida Action against any person or entity other than Medtronic.

      K.    Osteotech shall take the bio-d(R)Threaded Cortical Bone Dowel
            ("bio-d(R)") product line Off the Market no later than January 31,
            2003. After January 31, 2003, any products and related instruments
            and method-directed material related to the bio-d(R)product line
            which have previously been delivered to an end-user customer
            (physician or hospital) such that the end-user customer has taken
            legal title, on standard payment terms as described above, may
            remain in place; any other products and related instruments and
            method-directed material shall be recalled and withdrawn from the
            market completely, including without limitation any such items in
            the possession, custody or control of Osteotech or its employees,
            sales representatives, distributors, or stocking facilities, and
            including any such items which such persons or entities have loaned
            or consigned to another.

      L.    Osteotech agrees that it will not replace the bio-d(R) product line
            or its related surgical instruments with any products which infringe
            any of the `253, `437, `038, `081, `084, and `296 Patents, nor will
            it promote the practice of any methods covered by any of those
            patents after the withdrawal of the bio-d(R) product line from the
            market by January 31, 2003 or such earlier date as it completes such
            withdrawal.

      M.    Osteotech, Inc. and each of its officers, agents, employees,
            successors and assigns, as well as any person who, acting in concert
            or participating with the defendant, has actual notice of the
            Consent Judgment, consent to being permanently enjoined from
            infringement, active inducement of infringement, or contributory
            infringement of any claim of United States Patent Nos. 5,471,253,
            5,484,437, and 6,096,038 (collectively "the '253, '437, and '038
            patents.") for the remainders of their prospective terms, except
            that Osteotech shall be permitted to continue sales of products in
            the existing bio-d(R)product line as it existed on April 24, 2002
            (including related instruments and methods) only until such products
            are fully withdrawn from the market not later than January 31, 2003,
            as provided herein.

V.    TRANSFER OF THIS AGREEMENT

      A.    This Agreement and the rights and obligations set forth herein shall
            be transferable only to a purchaser who acquires substantially all
            of the rights and assets of a party, or of the business unit of a
            party that includes the spinal interbody implant business. The
            rights and obligations of the transferee shall be the same as the
            transferor's rights and obligations immediately preceding the
            transfer, and the transferee shall not acquire any rights or incur
            any obligations apart from or severable from the transferred
            business. Nothing in this

                                                                           E-215
<PAGE>

            provision shall prevent any party from transferring this Agreement
            or the rights or obligations set forth herein to an affiliate,
            provided that doing so does not relieve that party of its
            obligations hereunder.

VI.   MISCELLANEOUS

      A.    This Agreement may not be modified except in writing signed by
            authorized representatives of the parties.

      B.    The parties to this Agreement represent and warrant that they have
            the authority to enter into this Agreement, including the releases
            and covenants contained herein, and that they and their counsel have
            the authority to execute and file the Consent Judgment. Medtronic,
            Inc. represents and warrants that it has the right to bind the
            entities included within the definition of "Medtronic" in this
            Settlement Agreement to the terms and conditions of this Settlement
            Agreement and to cause such entities to comply with their
            obligations under this Settlement Agreement.

      C.    Any party to this Agreement who believes that another party has
            breached this Agreement shall give written notice to the other
            party. If the party asserted to have breached determines that it has
            breached this Agreement, it may cure the breach within 10 days of
            receiving notification of the breach without incurring any penalty,
            except as provided in Paragraphs III B and C supra.

      D.    This Agreement shall be governed by, and construed and enforced in
            accordance with, the substantive and procedural laws of the State of
            Tennessee.

      E.    The United States District Court for the Western District of
            Tennessee shall retain jurisdiction over the implementation of or
            disputes arising out of the settlement of this litigation. The
            parties retain their rights to petition the United States District
            Court for the Western District of Tennessee regarding any breach or
            violation of this Agreement, to seek enforcement of this Agreement
            and seek equitable relief and damages.

      F.    All disputes, controversies or differences that may arise between
            the parties out of, or in relation to, or in connection with this
            Agreement, or for the breach thereof, shall be submitted to the
            United States District Court for the Western District of Tennessee
            for resolution, or if, and only if, such court shall not have
            jurisdiction over such dispute, then in State Court in Shelby
            County, Tennessee.

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<PAGE>

      G.    Enforcement of the terms of this settlement, whether undertaken by
            Medtronic alone or in conjunction with any other person or entity,
            is not contrary to the terms of this settlement.

      H.    This settlement between Medtronic and Osteotech is complete and
            final as to both the Tennessee and Florida actions, and is not
            contingent on any action RTI, the University of Florida Tissue Bank
            ("UFTB"), or any other person may take.

      I.    No right or license is granted herein by implication or otherwise
            under any patent, patent application or patent claim.

      J.    All notices to, demands, consents or other communications which any
            party to this Agreement may desire or may be required to give to any
            other party must be in writing, shall be sent by overnight courier
            or registered United States Mail, or by facsimile transmission with
            electronically confirmed transmission, and shall be effective as of
            the date of confirmed receipt at the address of the party set forth
            below:

      for Medtronic:                         for Osteotech:

      General Counsel                        Chief Executive Officer
      Medtronic, Inc.                        Osteotech, Inc.
      710 Medtronic Parkway, N.E.            51 James Way
      Minneapolis, Minnesota 55432           Eatontown, New Jersey 07724
      Facsimile: (763) 572-5459              Facsimile: (732) 935-0626

      With a copy to:                        With a copy to:

      Chief Counsel                          Craig D. Diviney, Esq.
      Medtronic Sofamor Danek, Inc.          Dorsey & Whitney L.L.P.
      1800 Pyramid Place                     50 South Sixth Street
      Memphis, Tennessee 38132               Minneapolis, MN  55432
      Facsimile: (901) 344-1583              Facsimile: (612) 340-8856

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<PAGE>

      In witness whereof, the parties have caused this Agreement to be executed
by their respective duly authorized representatives on the dates and places
indicated below.

                                          MEDTRONIC, INC.,

                                          By: /s/ David J. Scott
                                             -----------------------------------
ATTEST:
                                          Title:  Senior Vice President General
                                                  Counsel and Secretary
                                                  ------------------------------
By: /s/ Jonathan L. Eisenberg             Dated:  June 21, 2002
   --------------------------                     ------------------------------

ATTEST:                                   OSTEOTECH, INC.,

By: /s/ Mark H. Burroughs                 By:  /s/ Michael J. Jeffries
   --------------------------                  ---------------------------------
                                          Title:  Executive Vice President, CFO
                                                  ------------------------------
                                          Dated:  June 28, 2002
                                                  ------------------------------

                                                                           E-218EXHIBIT 10.1

                      [THE FIRST OF LONG ISLAND LETTERHEAD]

                                                                   June 22, 2002

Mr. Michael N. Vittorio

Dear Mr. Vittorio:

      This letter employment agreement (the "Agreement") will serve to set forth
the terms and conditions of your employment by The First of Long Island
Corporation ("FLIC"), and its subsidiary, The First National Bank of Long Island
(the "Bank"), as follows:

1. TERM; RENEWAL

      The Initial Term of the Agreement shall run from the date on which you
commence rendering services to FLIC and the Bank hereunder, which date shall be
no later than August 15, 2002, through and including December 31, 2003. If not
terminated as described below, the Agreement shall, on July 1 of each year
(beginning July 1, 2003), automatically be extended for an additional year,
resulting in a new one and one-half year term (a "Renewal Term"), with such
modifications hereto as the parties shall agree in writing; provided, however,
that the Agreement shall not be so extended in the event that you or FLIC
provides written notice of non-extension to the other party no later than April
30 of any such year. Notwithstanding the foregoing, FLIC may not provide such
notice of non-extension during any period of time in which the Board of
Directors of FLIC is actively negotiating a transaction the consummation of
which would constitute a Change of Control Event (as hereinafter defined).

2. CAPACITY

      A. You shall be employed in the capacity of Executive Vice President of
the Bank and such other senior executive title or titles of FLIC or the Bank as
may from time to time be determined by the Boards of Directors of the Bank and
FLIC. You shall have such duties and responsibilities as shall be assigned to
you by the Chief Executive Officer or by the Board of Directors of the Bank. You
shall be responsible to the Chief Executive Officer of FLIC and the Bank.

      B. You agree to devote your full time and attention and best efforts to
the faithful and diligent performance of your duties to FLIC and the Bank and
shall serve and further the best interests and enhance the reputation of FLIC
and the Bank to the best of your ability. Nothing herein shall be construed as
preventing you from serving as a member of the board of directors of any
non-profit organization.

                                       18

<PAGE>

3. COMPENSATION

      As full compensation for your services, you shall receive the following
from FLIC or, in the discretion of FLIC, it shall cause the following to be paid
or provided by the Bank:

      A. A Base Annual Salary, payable bi-weekly, of not less than (i) Two
Hundred Fifty Thousand Dollars ($250,000.00) during the period July 1, 2002
through June 30, 2003 and (ii) Two Hundred Seventy Five Thousand Dollars
($275,000.00) thereafter; provided, however, that no later than January 15 of
each year that this Agreement shall remain in effect, beginning in the year
2004, the Chief Executive Officer and the Board of Directors of FLIC shall
review your compensation, without any commitment, to determine whether to
increase your Base Annual Salary hereunder. In the event that the Board of
Directors of FLIC does, from time to time, increase your Base Annual Salary, the
increased amount shall be your Base Annual Salary for all purposes of this
Agreement, and such increased amount shall be the minimum amount payable
hereunder.

      B. The use of an appropriate new automobile furnished by the Bank.

      C. Reimbursement for country club dues and for expenses incurred by you at
the club that are necessary and proper in the conduct of the business of FLIC or
the Bank.

      D. Such other benefits as are consistent with the personnel benefits
provided by the Bank and FLIC to its officers and employees.

4. TERMINATION PAYMENT.

      A. Entitlement. FLIC shall make a payment to you, in the amount provided
for in Paragraph "B" of this Section (the "Termination Payment"), in the event
of, and within ten (10) days after, the occurrence of either of the following:

            (i) Your employment is terminated by the Bank, provided, however,
that you shall not be entitled to receive such payment if such termination is
due to gross and substantial dishonesty on your part; or

            (ii) You resign your employment with the Bank for Good Reason within
twenty-four months after a Change of Control Event (as such terms are
hereinafter defined).

      B. Amount. The Termination Payment shall be equal to (i) One Hundred Per
Cent (100%) of your then current Base Annual Salary in the event of termination
of your employment pursuant to the foregoing Section 4(A)(i) (regardless of the
length of the then remaining portion of the Initial Term or Renewal Term, as the
case may be), or (ii) Two Hundred Per Cent (200%) of such Base Annual Salary in
the event of your resignation pursuant to the foregoing Section 4(A)(ii).

                                       19
<PAGE>

      C. Supplemental Termination Payments. Notwithstanding the foregoing, in
the event that (A) you fail to become employed at any time within one (1) year
after termination of your employment pursuant to the foregoing Section 4(A)(i)
in a capacity reasonably comparable to either your position with the Bank as
contemplated hereunder or your most recent position with JP Morgan Chase
("Comparable Employment") and (B) your failure to secure Comparable Employment
continues at the expiration of such one (1) year period, then you will be
entitled to receive further payments (the "Supplemental Termination Payments"),
subject to the following terms and conditions:

      (i)   Each Supplemental Termination Payment shall be in an amount equal to
            (x) the Termination Payment otherwise due you pursuant to Section
            4(B)(i) by reason of such termination, divided by twenty-six (26),
            less (y) your gross earnings from employment or self-employment, if
            any, during the two week period immediately preceding the date on
            which such payment becomes due under the terms hereof;

      (ii)  The Supplemental Termination Payments shall be payable to you in
            consecutive bi-weekly installments, beginning two weeks after the
            expiration of such one (1) year period; and

      (iii) Your entitlement to Supplemental Termination Payments shall cease
            immediately upon the earlier of (A) your securing of Comparable
            Employment or (B) the expiration of a period of twenty-six (26)
            weeks measured from the expiration of such one (1) year period.

      You agree (i) to make your best efforts to seek Comparable Employment
promptly upon termination of your employment by the Bank and (ii) to furnish
FLIC with information regarding your earned income sufficient to enable FLIC to
calculate the Supplemental Termination Payments.

      D. Resignation Without "Good Reason" Following Change of Control. You will
be entitled to a payment equal to Sixty-Six and Two-Thirds Per Cent (66 2/3%) of
the Termination Payment provided for in Section 4(B)(ii) hereof in the event
that you resign your employment with the Bank for any reason during the period
beginning on the thirty-first day after a Change of Control Event and ending on
the sixtieth day after such event.

      E. Other Resignation. You will not be entitled to any payment in the event
of your resignation, except to the extent provided in the foregoing Sections
4(A)(ii) and 4(D).

      F. Payor. FLIC may elect to discharge its obligation to make any or all of
the foregoing payments by causing the Bank, its wholly owned subsidiary, to do
so.

5. NON-WAIVER.

      Your failure to resign upon the occurrence of a particular event
constituting Good Reason hereunder shall not bar you from resigning upon the
subsequent occurrence of any other or further event constituting Good Reason,
and thereby becoming eligible to receive the Termination Payment, provided that
such resignation occurs within twenty-four months after a Change of Control
Event.

6. INELIGIBILITY FOR TERMINATION PAYMENT.

      Regardless of whether a Change of Control Event shall have occurred, you
shall not be entitled to any Termination Payment in the event that your
employment is terminated by reason of your death, normal retirement or
disability.

                                       20
<PAGE>

7. DEFINITIONS.

      A. "Good Reason" for resignation by you of your employment shall mean the
occurrence (without your express written consent) of any one of the following
acts or omissions to act by FLIC or the Bank:

            (i) The assignment to you of any duties materially inconsistent with
the nature and status of your responsibilities immediately prior to a Change of
Control Event, or a substantial adverse alteration in the nature or status of
your responsibilities from those in effect immediately prior to the Change of
Control Event; provided, however, that a redesignation of your title shall not
in and of itself constitute Good Reason if your overall duties and status within
FLIC and the Bank are not substantially adversely affected.

            (ii) The failure by FLIC or the Bank to pay you any portion of your
current compensation, or to pay you any portion of an installment of a deferred
compensation amount under any deferred compensation program, within fourteen
(14) days of the date such compensation is due.

      B. "Change of Control Event" shall mean the occurrence of any one of the
following:

            (i) Continuing Outside Directors (as hereinafter defined) no longer
constitute at least two-thirds (2/3) of Outside Directors (as hereinafter
defined) of FLIC;

            (ii) There shall be consummated a merger or consolidation of FLIC,
unless at least two-thirds (2/3) of Continuing Outside Directors are to continue
to constitute at least two-thirds (2/3) of Continuing Directors;

            (iii) At least two-thirds (2/3) of Continuing Outside Directors
determine that action taken by stockholders constitutes a Change of Control
Event; or

            (iv) The Bank shall cease to be a wholly-owned subsidiary of FLIC.

      C. "Continuing Outside Director" shall mean any individual who is not an
employee of FLIC or the Bank and who (i) is a director of FLIC as of the date
hereof, (ii) prior to election as a director is nominated by at least two-thirds
(2/3) of the Continuing Outside Directors, or (iii) following election as a
director is designated a Continuing Outside Director by at least two-thirds
(2/3) of Continuing Outside Directors.

      D. "Outside Director" shall mean an individual who is not an employee of
FLIC or the Bank who is a director of FLIC.

8. HEALTH INSURANCE.

      8.1 In the event that you shall cease to be employed by the Bank under
circumstances entitling you to receive a Termination Payment hereunder, FLIC
shall, at no cost to you, continue to cover you under, or provide you with,
family medical and dental coverage subsequent to the date of termination of your
employment. Such coverage shall be continued for a period ending on the date
which is eighteen (18) months after the termination date and shall be no less
favorable than your medical and dental coverage in effect on such termination
date; provided, however, that if such termination date is subsequent to the
occurrence of a Change of Control Event, the coverage to be

                                       21
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provided hereunder shall be no less favorable than the coverage in effect
immediately prior to the occurrence of such Change of Control Event.

      8.2 Notwithstanding the provisions of the foregoing Section 8.1, the
obligation of FLIC to provide the health insurance coverage described therein
shall cease, as to each such policy and form of coverage, on the date when
another employer makes available to you benefits which are substantially
comparable to those described in such sections, regardless of whether the
benefits made available by such employer require a contribution on your part.

9. DEATH.

      In the event of your death subsequent to termination of your employment,
all payments and benefits due you hereunder shall be paid to your designated
beneficiary or beneficiaries or, if you have not designated a beneficiary or
beneficiaries, to your estate.

10. MISCELLANEOUS.

      10.1 Legal Expenses. FLIC shall pay all costs and expenses incurred by you
or us, including attorneys' fees and disbursements (at least monthly in the case
of costs and expenses incurred by you), in connection with any legal proceedings
(including, but not limited to, arbitration), whether or not instituted by you
or us, relating to the interpretation or enforcement of any provision of this
Agreement in connection with the termination of your employment. FLIC also
agrees to pay prejudgment interest on any money judgment obtained by you as a
result of such proceedings, calculated at the prime interest rate of the Bank as
in effect from time to time from the date that payment should have been made to
you hereunder. Notwithstanding the foregoing, in the event that any legal
proceedings referred to above result in a final non-appealable determination
that your employment was terminated because of gross and substantial dishonesty
on your part, FLIC shall have no further obligation to you under this section
and you shall refund to FLIC all amounts previously paid to you pursuant to this
section.

      10.2 Binding Effect; Successors. This Agreement shall be binding upon,
inure to the benefit of and be enforceable by you and us, your heirs and your
and our respective legal representatives, successors and assigns. If FLIC shall
be merged into or consolidated with another entity, the provisions hereof shall
be binding upon and inure to the benefit of the entity surviving such merger or
resulting from such consolidation. We shall required any successor (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business or assets of FLIC, by agreement in form and
substance satisfactory to you, to expressly assume and agree to perform
hereunder in the same manner and to the same extent that we would be required to
perform hereunder if no such succession had taken place. The provisions hereof
shall continue to apply to each subsequent merger, consolidation or transfer of
assets of such subsequent employer.

      10.3 Notices. Any notices required to be given under this Agreement shall,
unless otherwise agreed to by you and us, be in writing and shall be sent by
certified mail, return receipt requested, to FLIC at 10 Glen Head Road, Glen
Head, New York 11545, Attention: Board of Directors, and to you at the home
address which you have designated in writing; or at such other address as you or
we may designate in writing, respectively.

      10.4 Waiver; Modification. No waiver or modification in whole or in part
of this Agreement, or any term or condition hereof, shall be effective against
any party unless in writing

                                       22
<PAGE>

and duly signed by the party sought to be bound. Any waiver of any breach of any
provision hereof or any right or power by any party on one occasion shall not be
construed as a waiver of, or a bar to, the exercise of such right or power on
any other occasion or as a waiver of any subsequent breach.

      10.5 Separability. Any provision of this Agreement which is unenforceable
or invalid in any respect in any jurisdiction shall be ineffective in such
jurisdiction to the extent that it is unenforceable or invalid without affecting
the remaining provisions hereof, which shall continue in full force and effect.
The enforceability or invalidity of a provision of the Agreement in one
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

      10.6 Controlling Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York applicable to contracts made
and to be performed therein.

      If this Agreement is satisfactory to you, would you kindly indicate your
acceptance by signing and returning the enclosed copy thereof to the Bank.

                                        Very truly yours,

                                        THE FIRST OF LONG ISLAND CORPORATION

                                        By: /s/ J. William Johnson
                                            ------------------------------------
                                            J. William Johnson, President

Accepted and agreed to as
of the 23rd  day of June, 2002

/s/ Michael N. Vittorio
------------------------------
Michael N. Vittorio

                                       23

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