Document:

EXHIBIT 10.27 Form of
2006 Equity Compensation Plan Restricted Stock Award

Agreement, as amended (effective date December 21, 2010)

Not
to be used for Performance-Based Awards

STATE BANCORP, INC.

2006
Equity Compensation Plan Restricted Stock Award Agreement

(effective as of December 21, 2010)

This agreement
(the “Award Agreement”) dated as of _________ ___, ____ (the “Award Date”), is
entered into by and between State Bancorp, Inc., a New York corporation (the
“Company”) and ___________________________________ (the “Grantee”). All
capitalized terms used and not otherwise defined herein shall have the meanings
ascribed to them by the State Bancorp, Inc. 2006 Equity Compensation Plan (the
“Plan”).

1. General. The Restricted Stock granted under this Award Agreement (the
“Restricted Stock Award”) is granted as of the Award Date pursuant to and
subject to all of the provisions of the Plan applicable to Restricted Stock
granted pursuant to Section 8 of the Plan, which provisions are, unless
otherwise provided herein, incorporated by reference and made a part hereof to
the same extent as if set forth in their entirety herein, and to such other
terms necessary or appropriate to the grant hereof having been made. A copy of
the Plan is on file in the offices of the Company.

2.  Grant. In consideration of the Grantee’s
past service to the Company or its Subsidiaries, the Company hereby awards to
Grantee a total of __________ shares of Restricted Stock (the “Restricted
Stock”), subject to the restrictions set forth in Section 3 hereof and in the
Plan.

3. Restrictions.

	
 

	
 

	
 

	
 

	
a.

	
During the
period commencing as of the Award Date and until such time as the Restricted
Stock shall have fully vested in accordance with Section 3d (the “Restricted
Period”), the Restricted Stock shall remain subject to forfeiture and other
restrictions set forth below.

	
 

	
 

	
 

	
 

	
b.

	
During the
Restricted Period and during the additional period (if any) commencing at the
expiration of the Restricted Period and ending on the later of the first
anniversary of the date on which the Restricted Stock fully vests or the
first anniversary of the Grantee’s termination of employment with the Company
and its Subsidiaries and affiliates for any reason (the “Supplemental
Period”), the Restricted Stock shall remain subject to the provisions of
Section 17 hereof. If the Grantee violates the restrictions of Section 17
hereof during the Restricted Period or the Supplemental Period, the Company
shall have the right, but not the obligation, to declare the Restricted Stock
forfeited; in such event, the Company shall repurchase the Restricted Stock
from the Grantee in consideration for a cash payment equal to the monetary
payment (if any) made by the Grantee to the Company to acquire the Restricted
Stock or $.01 per share. Such right shall be exercised no later than thirty 

	
 

	
 

	
 

	
 

	
 

	
days after
the expiration of the Restricted Period and the Supplemental Period.

	
 

	
 

	
 

	
 

	
c.

	
None of the
shares of Restricted Stock may be sold, exchanged, transferred, pledged,
hypothecated, assigned or otherwise encumbered or disposed of until they
shall have fully vested in accordance with Section 3d and, if applicable,
have become transferable in accordance with Section 3j (whichever occurs
last).

	
 

	
 

	
 

	
 

	
d.

	
Subject to
the Grantee’s continued employment with the Company (or a Subsidiary
thereof), and except as provided below, the Restricted Stock shall vest one
third after the expiration of the third year after the Award Date, one third
after the expiration of the fourth year after the Award Date and the remainder
to vest after the expiration of the fifth year after the Award Date (each a
“Vesting Date”).

	
 

	
 

	
 

	
 

	
e.

	
In the event
of the Grantee’s death or Disability while the Grantee remains employed by
the Company (or a Subsidiary thereof), the Restricted Stock shall become
vested on a pro rated basis based upon the number of months of the Grantee’s
employment since the Award Date. In the event the Grantee’s employment with
the Company (or a Subsidiary thereof) terminates for any reason other than by
death or Disability prior to the Vesting Date, the Restricted Stock shall be
forfeited immediately.

	
 

	
 

	
 

	
 

	
f.

	
Notwithstanding
anything to the contrary herein but subject to Section 3j, if applicable, if
the Company is not the surviving corporation following a Change in Control,
and the Acquiror does not assume the Restricted Stock or does not substitute
equivalent equity awards relating to the securities of such Acquiror or its
affiliates for the Restricted Stock, then the Restricted Stock shall become
fully vested and all restrictions (other than transfer restrictions imposed
by Section 3j, if applicable) will immediately lapse For all purposes of this
Agreement, “Change in Control” shall mean (a) on or prior to the second
anniversary of the Award Date an event described in 26 C.F.R. section
1.280G-1 (Q/A 27 through 29) or 26 C.F.R. section 1.409A-3(i)(5)(i) and (b)
after the second anniversary of the Award Date, an event described in 26
C.F.R. section 1.280G-1 (Q/A 27 through 29) or 26 C.F.R. section
1.409A-3(i)(5)(i) or a transaction meeting the definition of Change in
Control contained in the Plan.

	
 

	
 

	
 

	
 

	
g.

	
Notwithstanding
anything to the contrary herein but subject to Section 3j, if applicable, if
the Company is the surviving corporation following a Change in Control, or
the Acquiror assumes the Restricted Stock or substitutes equivalent equity
awards relating to the securities of such Acquiror or its affiliates for the
Restricted Stock, then the Restricted Stock or such substitute therefore
shall remain outstanding and be governed by their respective terms and the
provisions of the Plan, except, however, if the Grantee’s employment with the
Company (and its Subsidiaries) is terminated for any reason other than
“cause” within eighteen (18) months following a Change in Control, then the
Restricted Stock shall immediately become fully vested and all restrictions
(other than transfer restrictions imposed by Section 3j, if applicable) will
immediately lapse. For this purpose, “cause” shall have the meaning assigned
to such term under an employment agreement or change 

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in control
agreement between the Company and the Grantee in effect on the date of this
Award Agreement and, in the absence of such an employment agreement or change
in control agreement, shall mean:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(i)

	
fraud,
misappropriation or intentional material damage to the property or business
of the Company or any Subsidiary, or

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(ii)

	
commission
of a felony whose determination is final and non-appealable, or entry of a
plea of guilty or no contest to the commission of a felony, or

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(iii)

	
material
violation of any material law, rule or regulation applicable to the Company
or any Subsidiary or its respective business.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
For purposes
of this provision, no act or failure to act, on the part of the Grantee,
shall be considered “intentional” unless it is done, or omitted to be done,
by the Grantee in bad faith or without reasonable belief that the grantee’s
action or omission was in the best interests of the Company. Any act, or failure
to act, based upon authority given pursuant to a resolution duly adopted by
the Board or upon the instructions of the Chief Executive Officer or a senior
officer of the Company or based upon the advice of counsel for the Company
shall be conclusively presumed to be done, or omitted to be done, by the
Grantee in good faith and in the best interests of the Company.

	
 

	
 

	
 

	
 

	
 

	
 

	
h.

	
Intentionally
omitted

	
 

	
 

	
 

	
 

	
 

	
 

	
i.

	
During the
Restricted Period and the Supplemental Period, the Restricted Stock shall be
recorded in a book entry account in the name of the Grantee.

	
 

	
 

	
 

	
 

	
 

	
 

	
j.

	
If the
Grantee is subject to the executive compensation requirements of section 111
(b) (3) (D) of the Emergency Economic Stabilization Act of 2008, as amended,
for the year that includes the Award Date, on each Vesting Date, a number of
vested shares of Restricted Stock with an aggregate fair market value equal
to the aggregate amount of federal, state and local taxes required to be
withheld and remitted directly to taxing authorities in connection with such
Vesting Date (as determined by the Committee) (the “Tax Withholding Shares”)
shall be transferable by the Grantee. The balance of the restricted Stock
shall become transferable as follows: an aggregate twenty-five percent (25%)
of the Restricted Stock (or if less, the entire number of vested shares of
Restricted Stock) shall be transferable when the Company has repaid at least
twenty-five percent (25%) of the aggregate financial assistance it received
pursuant to the United States Treasury’s Capital Purchase Program (the
“CPP”); an aggregate of fifty percent (50%) of the Restricted Stock (or if
less, the entire number of vested shares of Restricted Stock) shall be
transferable when the Company has repaid at least at least fifty percent (50%)
of the aggregate financial assistance received under the CPP; an aggregate of
seventy-five percent (75%) of the Restricted Stock (or if less, the entire
number of vested shares of Restricted Stock) shall be transferable when the
Company has repaid at least at least seventy-five percent (75%) of the
aggregate financial assistance received under the CPP; and all of the
Restricted Stock (or if less, the entire number of vested shares of 

3

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Restricted
Stock) shall be transferable when the Company has repaid all of the financial
assistance received under the CPP. For purposes of applying the percentages
immediately preceding sentence, the Tax Withholding Shares shall not be
counted.

	
 

	
 

	
 

	
 

	
 

	
 

	
k.

	
If the
Grantee is subject to the executive compensation requirements of section 111
(b)(3)(D) of the Emergency Economic Stabilization Act of 2008, as amended,
for the year that includes the Award Date (the “Award Year”) at December 31
of the Award Year, the grant-date value of the Restricted Stock shall be
compared to the limits imposed by 31 C.F.R. § 30.10. In the event the Company
awards Restricted Stock to the Grantee in excess of one third of the
Grantee’s Award Year annual compensation (or pro rate portion thereof), as
that term is defined in 31 C.F.R. Part 30, the Restricted Stock Award shall
be automatically reduced, without the consent of the Grantee or any other
party, to the extent necessary to limit the amount of the Restricted Stock by
a fraction, the numerator of which is the limit set forth in 31 C.F.R. §
30.10 and the denominator of which is the grant-date value of the Restricted
Stock.

4. Rights as Stockholder. The Grantee shall be entitled to
receive dividends and shall have the right to vote the Restricted Stock granted
hereunder and shall have all other shareholders’ rights with respect to the
Restricted Stock, with the exception that (i) the Grantee will not be entitled
to delivery of the stock certificate representing the Restricted Stock during
the Restricted Period and the Supplemental Period, (ii) the Company will retain
custody of the Restricted Stock during the Restricted Period and the
Supplemental Period, (iii) failure to attain any vesting conditions established
by the Committee and set forth in this Award Agreement shall cause the forfeiture
of the Restricted Stock in exchange for the payment of the cash purchase price,
if any, paid by the Grantee and (iv) if any dividends are paid in shares of
Stock or any other adjustment is made upon a change in the capital structure of
the Company, any new, substituted or additional securities or other property
(other than normal cash dividends) to which the Grantee is entitled by reason
of his or her Restricted Stock Award will be immediately subject to the same
restrictions as the Restricted Stock with respect to which they were issued.

5. Other Terms and Conditions. The Committee
shall have the discretion to determine such other terms and provisions hereof
as stated in the Plan. Without limiting the foregoing, the Restricted Stock
awarded hereunder is intended to constitute “long-term restricted stock” within
the meaning of 31 C.F.R. Part 30, and this Agreement, and the terms and
conditions of the Restricted Stock awarded hereunder, shall be subject to
amendment by the Committee, without the consent of the Grantee or any other
party, to the extent necessary to give effect to such intent and to comply in
all other respects with 31 C.F.R. Part 30 applicable to awards of long-term
restricted stock to which the bonus accrual and payment prohibitions of 31 C.F.R.
§30.10 do not apply. This Award Agreement shall be subject to further
unilateral amendment by the Company, if and to the extent the Company
determines, with the advice of counsel or on the basis of advice from a
national securities exchange on which the Company has listed or applied to list
its shares for trading, that such amendment is necessary to permit its shares
to be listed, or continue to be listed, due to the imposition of a listing
requirement pursuant to section 10D of the Securities Exchange Act of 1934, as
amended.

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6. No Right to Employment. Nothing herein
shall be deemed to (a) create any obligation on the part of the Company or any
Subsidiary to retain the Grantee in the employ of, or continue the provision of
services to, the Company or any Subsidiary or (b) be evidence of any agreement
or understanding, express or implied, that the Grantee has a right to continue
as an employee for any period of time or at any particular rate of
compensation.

7. Governing Law. The validity, construction,
interpretation and enforceability of this Award Agreement shall be determined
and governed by the laws of the State of New York without regard to any
conflicts or choice of law rules or principles that might otherwise refer
construction or interpretation of this Award Agreement to the substantive law
of another jurisdiction.

8. Waiver. The waiver by the Company of a breach
of any provision of this Award Agreement by Grantee shall not operate or be
construed as a waiver of any subsequent breach by Grantee.

9. Binding Effect. The
provisions of this Award Agreement shall be binding upon the parties hereto,
their successors and assigns, including, without limitation, the Company, its
successors or assigns, the estate of the Grantee and the executors, administrators
or trustees of such estate and any receiver, trustee in bankruptcy or
representative of the creditors of the Grantee.

10. Severability.
The provisions of this Award Agreement are severable and if any one or more
provisions may be determined to be illegal or otherwise unenforceable, in whole
or in part, the remaining provisions, and any partially unenforceable provision
to the extent enforceable in any jurisdiction, shall nevertheless be binding
and enforceable.

11. No Impact on Benefits.
Restricted Stock Awards are not compensation for purposes of calculating a
Grantee’s rights under any employee benefit plan that does not specifically
require the inclusion of Restricted Stock Awards in calculating benefits.

12. Beneficiary Designation. Each Grantee may name a beneficiary or beneficiaries to receive any Restricted Stock
that is vested at the Grantee’s death by executing and delivering to the
Company a Beneficiary Designation Form in the form attached hereto. Each
designation will revoke all prior designations made by the same Grantee and
will be effective only when filed in writing with the Committee. If a Grantee
has not made an effective beneficiary designation, the deceased Grantee’s
beneficiary will be the Grantee’s surviving spouse or, if none, the deceased
Grantee’s estate. The identity of a Grantee’s designated beneficiary will be
based only on the information included in the latest Beneficiary Designation
Form completed by the Grantee and delivered to the Company and will not be
inferred from any other evidence.

13. Tax Withholding. The
grant of the Restricted Stock Award hereunder does not result in any immediate
tax liability for the Grantee. However, the Grantee will have taxable income at
the time the Restricted Stock Award becomes vested. If the Company determines
that any federal, state, local or foreign tax or withholding payment is
required relating to the vesting of shares arising from this grant, the Company
shall have the right to require such payments from Grantee. If Grantee does not
make the required payment or direct the Company to withhold shares to satisfy
such withholding obligation, the Company may withhold from such Restricted
Stock Award, that number of shares of Stock equal to the minimum statutory
amount necessary to satisfy federal, state and local taxes required by law or
regulation to be withheld as a result of 

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the vesting of
the Restricted Stock acquired under this grant divided by the Fair Market Value
of a share of Stock at the close of business on the day before the day on which
withholding is required to be effected, rounded down to the nearest share, or
to withhold such amounts from other payments due Grantee from the Company or
any Subsidiary. If the Grantee is subject to blackout periods under the
Company’s Insider Trading Policy any choice on the Grantee’s part to pay the
required withholding amount or have shares withheld must be irrevocably made no
later than the last trading date on which the Grantee would be permitted to
sell shares in the market; thereafter, the method of withholding will be at the
Company’s discretion.

14. Compliance with
Securities Laws.

	
 

	
 

	
 

	
 

	
 

	
a.

	
No
Restricted Stock Award may be exercised or shares of Stock issued pursuant to
a Restricted Stock Award unless (1) a registration statement under the
Securities Act of 1933, as amended (the “Securities Act”), shall at the time
of exercise or issuance be in effect with respect to the shares issuable
pursuant to such award or (2) in the opinion of legal counsel to the Company,
the shares issuable pursuant to such award may be issued in accordance with
the terms of an applicable exemption from the registration requirements of
the Securities Act.

	
 

	
 

	
 

	
 

	
b.

	
The Company
may place upon any stock certificate for shares of Stock issued pursuant to a
Restricted Stock Award the following legend or such other legend as the Board
may prescribe to prevent disposition of the shares in violation of the
Securities Act or other applicable law:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
“THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933 (‘ACT’) AND MAY NOT BE SOLD, PLEDGED,
HYPOTHECATED, OR OTHERWISE TRANSFERRED OR OFFERED FOR SALE IN THE ABSENCE OF
AN EFFECTIVE REGISTRATION STATEMENT WITH RESPECT TO THEM UNDER THE ACT,
AND/OR COMPLIANCE WITH RULE 144 OF THE ACT OR A WRITTEN OPINION OF COUNSEL
FOR STATE BANCORP, INC. THAT SUCH REGISTRATION OR COMPLIANCE IS NOT
REQUIRED.”

	
 

	
 

	
 

	
 

	
 

	
c.

	
The inability of the Company to obtain from any regulatory body
having jurisdiction the authority, if any, deemed by the Company’s legal
counsel to be necessary to the lawful issuance and sale of any shares
hereunder shall relieve the Company of any liability with respect to the
failure to issue or sell such shares as to which the requisite authority
shall not have been obtained. As a condition to the issuance of any Stock,
the Company may require the Grantee to satisfy any qualifications that may be
necessary or appropriate to evidence compliance with any applicable law or
regulation or to make any representation or warranty with respect thereto as
may be requested by the Company.

15. Gender and Number. Except where otherwise indicated by the context, any masculine
term used herein also shall include the feminine, the plural shall include the
singular, and the singular shall include the plural.

16. Severability. In the event any provision of this
Award Agreement shall be held illegal or 

6

invalid for any reason, the illegality or invalidity shall not affect
the remaining parts hereof, and this Award Agreement shall be construed and
enforced as if the illegal or invalid provision had not been included.

17. Restrictive Covenants.
The Company and its Subsidiaries conduct a consumer and business banking
business (the “Company’s Business”). For all purposes of this Section 17, the
Company’s Geographic Market shall be any town, county, village or other
municipal unit by which the Company or any Subsidiary maintains an office, and
any contiguous town, county, village or municipal unit (the “Company’s
Geographic Market”). 

	
 

	
 

	
 

	
 

	
(a)

	
Covenants. The
Grantee agrees to the following covenants:

	
 

	
 

	
 

	
 

	
 

	
 

	
(i)

	
Confidential
Information. Unless he obtains the prior written
consent of the Company, the Grantee shall keep confidential and shall refrain
from using for the benefit of himself, or any person or entity other than the
Company and its Subsidiaries (the Company and such Subsidiaries collectively,
the “Company’s Affiliated Group”), any material document or information
obtained from a member of the Company’s Affiliated Group in the course of his
employment with any of them concerning their current or planned future
properties, operations or business, including but not limited to information
concerning the Company’s customers (the “Confidential Information”) unless
and until such document or information is readily ascertainable from public
or published information or trade sources or has otherwise been made
available to the public through no fault of his own; provided, however, that
nothing in this Section 17(a)(i) shall prevent the Grantee, with or without
the Company’s consent, from participating in or disclosing documents or
information in connection with any judicial or administrative investigation,
inquiry or proceeding to the extent that such participation or disclosure is
compelled under applicable law; in such event, the Grantee shall, to the
extent practicable under the circumstances, notify the Company in advance of
and afford the Company an opportunity, at its own expense, to take action to
prevent or limit the scope of such participation or disclosure.

	
 

	
 

	
 

	
 

	
 

	
 

	
(ii)

	
Proprietary
Information. The Grantee acknowledges that, during
the course of his employment, he will, alone or jointly with others, develop
or have access to information (whether in written, oral, electronic or other
form) concerning the Company’s Affiliated Group’s business plans, marketing
plans, methods and surveys, product and service design, development and
pricing plans and methods, customer lists, prospect lists, customer
relationship information and need assessments, profitability assessments,
technology, service marks, trademarks and other intellectual property, trade
secrets, know-how and other proprietary information concerning the Company’s
Affiliated Group (the “Proprietary Information”). The Grantee acknowledges
that all such Proprietary Information is, as between the Grantee and the
Company’s Affiliated Group, the sole property of the Company’s Affiliated
Group and that the Grantee has no right, title or interest therein. During
his employment with the Company and at all times thereafter, the Grantee
shall refrain from using any Proprietary Information for the benefit of any
person or entity other than 

7

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
the Company’s Affiliated Group. At any time upon the Company’s
request, and in any event upon his termination of employment with the
Company, the Grantee shall promptly return to the Company all Proprietary
Information in his possession in any form or media and all laptop computers,
cell phones and other property of the Company’s Affiliated Group in his possession
and shall, if requested to do so by the Company, certify in writing that any
Proprietary Information not so returned has been destroyed.

	
 

	
 

	
 

	
 

	
 

	
 

	
(iii)

	
Non-derogation.
While employed by the Company or any Subsidiary and at all times thereafter,
the Grantee shall refrain from making any statement (whether or not in
writing) concerning the Company’s Affiliated Group or its business,
operations, customers, directors, officers, employees or owners that he
intends, or that a reasonable person acting in like circumstances would
expect, to impair in any respect the Company’s Affiliated Group’s business,
operations or reputation.

	
 

	
 

	
 

	
 

	
 

	
 

	
(iv)

	
Solicitation.
The Grantee, for a period of one (1) year following his termination of
employment with the Company or any Subsidiary, shall not, without the written
consent of the Company, either directly or indirectly:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(a)

	
solicit, offer employment to, or take any other action intended, or
that a reasonable person acting in like circumstances would expect, to have
the effect of causing any officer or employee of the Company’s Affiliated
Group to terminate his or her employment and accept employment or become
affiliated with, or provide services with or without compensation in any
capacity whatsoever to, any person or entity engaged in a business or line of
business or providing a product or service in direct or indirect competition
with the Company’s Business in the Company’s Geographic Market;

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(b)

	
provide any information, advice or recommendation with respect to any
such officer or employee to any person or entity that is intended, or that a
reasonable person acting in like circumstances would expect, to have the
effect of causing, encouraging or enabling any officer or employee of the
Company’s Affiliated Group to terminate his employment and accept employment
or become affiliated with, or provide services with or without compensation
in any capacity whatsoever to, any person or entity engaged in a business or
line of business or providing a product or service in direct or indirect
competition with the Company’s Business in the Company’s Geographic Market;
or

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(c)

	
directly or indirectly solicit, or facilitate in any manner any other
person’s or entity’s solicitation of, business in competition with the
Company’s Business in the Company’s Geographic market from (I) any of the
Company’s customers with whom the Grantee served as a relationship manager,
or whom the Grantee was assigned to solicit on behalf of the Company, at any
time during the period of one (1) year ending on the date of his termination
of employment; (II) any other person or entity which the Grantee knows to be
one of the Company’s customers, or (III) any other person or entity which the
Grantee knows is 

8

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
being actively solicited by the Company on, or had been identified
for active solicitation by the Company at any time during the period of one
(1) year ending on the date of his termination of employment with the
Company.

	
 

	
 

	
(b)

	
Reasonableness of Covenants.
The Grantee acknowledges that: (i) the Company has a legitimate business
interest in preserving its investment in its Confidential Information and
Proprietary Information, and the Company’s customers; (ii) the restrictions
set forth in this Section 17 constitute reasonable restrictions to protect
the Company’s legitimate business interests; (iii) such restrictions are
reasonable in duration, geographic scope and scope of business protected;
(iv) observing such restrictions will not unreasonably impair the Employee’s
ability to seek or secure employment following his termination of employment
with the Company; and (v) his employment by the Company constitute adequate
consideration for his adherence to such restrictions. The Grantee hereby
waives his right, in any action or proceeding relating to the enforcement or
enforceability of the provisions of this Section 17, to make any argument or
assertion to the contrary.

	
 

	
 

	
(c)

	
Reasonableness of Damages.
The Grantee hereby acknowledges that the forfeiture of the Restricted Stock
as provided herein constitutes reasonable but non-exclusive damages and
waives his right, in any action or proceeding relating to the enforcement or
enforceability of the provisions of this Section 17, to make any argument or
assertion to the contrary.

	
 

	
 

	
(d)

	
Specific Performance.
The Grantee acknowledges that money damages will not be an adequate remedy
for his failure to observe or perform any of the covenants set forth in
Section 17(a). Therefore, the Company shall have the right to apply to any
court of competent jurisdiction for equitable relief, including but not
limited to a temporary restraining order or injunction ordering specific
performance. The Grantee hereby waives his right, in any action or proceeding
relating to any application for equitable relief, to make any argument or
assertion to the contrary.

	
 

	
 

	
(e)

	
Notification to Subsequent Employers and
Potential Employers. Prior to accepting employment
with any person or entity other than a member of the Company’s Affiliated
Group, the Grantee shall disclose to such person or entity the existence of
this Agreement and furnish such person or entity with a copy hereof. The
Company reserves the right, and the Grantee hereby authorizes the Company (i)
to notify any person or entity making a pre-hire or post-hire inquiry of the
Company concerning the Grantee of the existence of this Agreement and to
furnish to such person or entity a copy hereof and (ii) to notify any person
or entity engaged in a business or line of business or providing products or
services in direct or indirect competition with the Company’s Business in the
Company’s Geographic Market by whom the Grantee is subsequently employed, or
with whom the Grantee is subsequently affiliated as an owner, investor,
financier, director, officer, employee, independent contractor, vendor or
service provider, whether for or without compensation, of the existence of
this Agreement and to furnish to such person or entity a copy hereof.

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(f)

	
Reformation or Modification.
In the event that this Section 17 or any portion hereof shall be found by an
arbitrator or court of competent jurisdiction to be unenforceable as written,
such court or arbitrator shall, and is hereby authorized to, modify this
Section 17 or any portion hereof in such manner as he or it determines to be
necessary to render this Section 17 enforceable to the maximum possible
extent and to enforce this Section 17 as so modified.

18. Effective Date; Conditions of
Effectiveness. This Agreement and the Restricted Stock
Award evidenced hereby shall take effect on the Award Date; provided that the
following conditions are met: (a) the Grantee is an employee in good standing
of the Company or a Subsidiary of the Company on the Award Date and (b) the
Grantee has executed this Agreement and delivered the executed Agreement to the
Company prior to the close of business on the Award Date. If either of the
foregoing conditions is not met, this Agreement shall not take effect and the
Restricted Stock Award evidenced hereby shall be null and void.

          IN WITNESS
WHEREOF, the parties hereto have caused this Award Agreement to be executed to
be effective as of the date written above.

	
 

	
 

	
 

	
 

	
 

	
State
Bancorp, Inc.

	
Grantee:

	
 

	
 

	
 

	
 

	
By: 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	
 

	
[Name]

	
 

	
 

	
 

	
 

	
[Title]

	
 

	
 

	
 

10

State Bancorp. Inc.

2006 Equity Compensation Plan Restricted Stock Award Agreement

Beneficiary Designation Form

Please
complete this form to designate a beneficiary to receive any Restricted Stock
that has been awarded to you pursuant to the Award Agreement dated _________
____, ____ under the State Bancorp, Inc. 2006 Equity Compensation Plan and that
has become vested as of the time of your death or to change a current
beneficiary designation. In the future, you may revoke this form and designate
a different beneficiary by completing and delivering another Beneficiary
Designation Form to the Company.

Grantee Information

	
 

	
 

	
Name:

	
________________________________________________________________________________________________

	
 

	
 

	
Social
Security Number: 

	
__________________________________________________________________________________

	
 

	
 

	
Street
Address: 

	
___________________________________________________________________________________________

	
 

	
 

	
City, State, Zip: 

	
___________________________________________________________________________________________

	
 

	
 

	
Phone Number: 

	
___________________________________________________________________________________________

You are not limited to three (3) primary
beneficiaries and three (3) contingent beneficiaries.
To designate additional beneficiaries, please attach, date and sign a separate
piece of paper.

When designating
beneficiaries please use whole percentages and be sure that the percentages for
each group of beneficiaries (primary and contingent) total 100%. Your primary beneficiary cannot be
your contingent beneficiary. If you designate a trust as a beneficiary, please
include the trust’s name and trust date.

Primary Beneficiar
(ies)

I hereby
designate the person(s) named below as primary beneficiar (ies) to receive any
Restricted Stock that has become vested as of the date of my death:

	
 

	
 

	
 

	
 

	
1.

	
Individual
or Trust Name:

	
 

	
________________________________________

	
 

	
Percentage:

	
 

	
________________________________________%

	
 

	
Date of
Birth or Trust Date:

	
 

	
________________________________________

	
 

	
Relationship
to Grantee:

	
 

	
________________________________________

	
 

	
 

	
 

	
 

	
2.

	
Individual
or Trust Name:

	
 

	
________________________________________

	
 

	
Percentage:

	
 

	
________________________________________%

	
 

	
Date of
Birth or Trust Date 

	
 

	
________________________________________

	
 

	
Relationship
to Grantee: 

	
 

	
________________________________________

	
 

	
 

	
 

	
 

	
3.

	
Individual
or Trust Name:

	
 

	
________________________________________

	
 

	
Percentage:

	
 

	
________________________________________%

	
 

	
Date of
Birth or Trust Date: 

	
 

	
________________________________________

	
 

	
Relationship
to Grantee:

	
 

	
________________________________________

11

If more than one person is
named and no percentages are indicated, payment will be made in equal share to
my primary beneficiar (ies) who survive(s) me. If a percentage is indicated and
a primary beneficiar (ies) does not survive me, the percentage of that primary
beneficiary’s designated share shall be divided equally among the surviving
primary beneficiar (ies).

Contingent Beneficiar
(ies)

If there is no
primary beneficiar(ies) living a the time of my death, I hereby specify the
following contingent beneficiar(ies) to receive any Restricted Stock that has
become vested as of the date of my death:

	
 

	
 

	
 

	
 

	
1.

	
Individual
or Trust Name:

	
 

	
________________________________________

	
 

	
Percentage:

	
 

	
________________________________________%

	
 

	
Date of
Birth or Trust Date:

	
 

	
________________________________________

	
 

	
Relationship
to Grantee:

	
 

	
________________________________________

	
 

	
 

	
 

	
 

	
2.

	
Individual
or Trust Name: 

	
 

	
________________________________________

	
 

	
Percentage:

	
 

	
________________________________________%

	
 

	
Date of
Birth or Trust Date: 

	
 

	
________________________________________

	
 

	
Relationship
to Grantee:

	
 

	
________________________________________

	
 

	
 

	
 

	
 

	
3.

	
Individual
or Trust Name: 

	
 

	
________________________________________

	
 

	
Percentage:

	
 

	
________________________________________%

	
 

	
Date of
Birth or Trust Date:

	
 

	
________________________________________

	
 

	
Relationship
to Grantee:

	
 

	
________________________________________

Payment to
contingent beneficiar (ies) will be made according to the rules of succession
described under Primary Beneficiar (ies).

          By
executing this form:

	
 

	
 

	
 

	
 

	
•

	
I am aware
that the beneficiary information in this form becomes effective when
delivered to the Company and will remain in effect until I deliver to the
Company another completed and signed Beneficiary Designation Form with a
later date.

	
 

	
 

	
 

	
 

	
•

	
I understand
that I may designate a beneficiary for my Restricted Stock and that if I
choose not to designate a beneficiary, my beneficiary will be my surviving
spouse or, if I do not have a surviving spouse, my estate.

	
 

	
 

	
 

	

	
 

	

	
Date

	
 

	
Grantee

12EXHIBIT 10.31 Officers’ Deferred Compensation
Plan of State Bancorp, Inc.

	
  

 	
  

 	
  

 
	
 Officers’ Deferred Compensation Plan

 
	
  

 	
  

 	
  

 
	
  

 	
 of

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 State Bancorp, Inc.

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	

 

 	
  

 

Adopted on January 29, 2008
Effective as of December 31, 2007

1

Officers’ Deferred Compensation Plan

of

State Bancorp, Inc.

Article I

Definitions

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

          Section
1.1 Acceleration Event means,
with respect to a Participant, any of the events described in section 6.1 on
the basis of which the Administrator may permit acceleration of the payment of
the balance credited to the Participant’s Memorandum Account.

          Section 1.2 Administrator means
any person, committee, corporation or organization appointed by the Committee
to perform the responsibilities assigned to the Administrator hereunder. If no
designation is made the Committee will serve as the Administrator.

          Section
1.3 Applicable Limitation means any of the
following: (a) the limitation on annual compensation that may be recognized
under a tax-qualified plan for benefit computation purposes pursuant to section
401(a)(17) of the Code; (b) the maximum limitation on annual additions to a
tax-qualified defined contribution plan pursuant to section 415(c) of the Code
and any other limitations under section 415 of the Code; (c) the maximum
limitation on annual elective deferrals to a qualified cash or deferred
arrangement pursuant to section 402(g) of the Code; (d) the annual limitation
on elective deferrals under a qualified cash or deferred arrangement by highly
compensated employees pursuant to section 401(k) of the Code; and (e) the
annual limitation on voluntary employee contributions by, and employer matching
contributions for, highly compensated employees pursuant to section 401(m) of
the Code.

          Section
1.4 Beneficiary means the person or persons
designated by a Participant under section 6.3 of the Plan.

          Section
1.5 Board means the Board of Directors of
the Company.

          Section 1.6 Code  means
the Internal Revenue Code of 1986 (including the corresponding provisions of
any succeeding law).

          Section
1.7 Company means State Bancorp, Inc. or
any successor thereto.

          Section
1.8 Change in Control Event means,
with respect to a Participant: (a) a change in ownership of the Participant’s
Service Recipient; (b) a change in effective control of the Participant’s Service
Recipient; or (c) a change in the ownership of a substantial portion of the
assets of the Participant’s Service Recipient. The existence of a Change in
Control Event 

2

shall be determined by the Administrator in accordance with section
409A of the Code and the regulations thereunder.

          Section
1.9 Cash Compensation means the monetary
compensation payable to an Officer for service as an employee of a
Participating Company, including salary, bonus and incentive compensation. 

          Section 1.10 Committee means
the Compensation Committee of the Board.

          Section 1.11 Compensation means,
during any period, the compensation payable to an Officer by any Participating
Company that is reportable to the Internal Revenue Service as compensation for
such period on Form W-2 or 1099 in the absence of an election to defer receipt
thereof under the terms of this Plan. Compensation shall include Cash
Compensation, and Equity Compensation. Compensation shall not include amounts
that become payable under this Plan.

          Section 1.12 Disability means,
with respect to a Participant, any medically determinable physical or mental
impairment which can be expected to result in death or to last for a continuous
period of at least twelve (12) months and as a result of which either: (a) the
Participant is unable to engage in any substantial gainful activity; or (b) the
Participant has been receiving income replacement benefits for a period of at
least three (3) months under an accident and health plan covering employees of
the Participant’s employer; or (c) any condition as a result of which such
Participant is determined to be totally disabled by the Social Security
Administration or Railroad Retirement Board. The existence of a Disability
shall be determined by the Administrator in accordance with section 409A and
the regulations thereunder.

          Section
1.13 Effective Date means December 31,
2007.

          Section 1.14 Equity Compensation means,
with respect to any Participant, that portion of the Participant’s
compensation, for service as an employee of a Participating Company that is
paid to him in Shares or the amount of which is based upon the value of a
Share. In no event shall Compensation include any amount of compensation
attributable to the grant or exercise of a stock option or stock appreciation
right.

          Section 1.15 ESOP means
the State Bancorp, Inc. Employee Stock Ownership Plan.

          Section 1.16 Fair Market Value means,
with respect to a Share on a specified date:

	
  

 	
  

 	
  

 
	
  

 	
           (a)
 the final reported sales price for a Share 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 the Shares are
 listed or admitted to trading; or

 
	
  

 	
  

 	
  

 
	
  

 	
           (b)
 if the 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 Quotations System, or, if 

 

3

	
  

 	
  

 	
  

 
	
  

 	
 no such
 quotation is provided, on another similar system, selected by the Committee,
 then in use; or

 
	
  

 	
  

 	
  

 
	
  

 	
           (c)
 if sections 1.16(a) and (b) are not applicable, the fair market value of a
 Share as the Administrator may determine.

 

          Section 1.17 Investment Benchmark means
a hypothetical investment classification in which a Participant’s Memorandum
Account shall be deemed to be invested for purposes of crediting or charging
earnings, losses, appreciation or depreciation in accordance with section 4.2.

          Section 1.18 Memorandum Account means,
with respect to a Participant, a bookkeeping account maintained by the Company
to which is credited the amount of the Participant’s deferred Compensation and
SERP Credits, together with any earnings and appreciation thereon, and against
which are charged any losses, depreciation or distributions thereof, pursuant
to Article IV.

          Section 1.19 Memorandum Subaccount means,
with respect to a Participant, a portion of the Participant’s Memorandum
Account that is separately accounted for by the Company due to the application
of unique provisions relating to the applicable distribution schedule or
Investment Benchmark(s).

          Section
1.20 Officer means an officer of a
Participating Company whose compensation is reportable in whole or in part on
Form W-2 not an officer or employee of any Participating Company; provided
however, that no person whose participation in the Plan would cause
the Plan to be subject to be subject to the vesting, funding, and/or minimum
participation requirements of the Employee Retirement Income Security Act of
1974, as amended, shall be regarded as an Officer under the Plan. 

          Section 1.21 Participant
means an Officer or former Officer who has a Memorandum Account under the Plan.

          Section 1.22 Participating Company
 means the Company, State Bank of Long Island and any other company which, with
the prior approval of the Board, may adopt this Plan.

          Section 1.23 Phantom Share means
a unit of value that, at any relevant date, corresponds to the Fair Market
Value of a Share.

          Section 1.24 Plan
 means the Officers’ Deferred Compensation Plan of State Bancorp, Inc.

          Section 1.25 Schedule A
 means a schedule attached hereto, and updated pursuant to section 3.1, which
lists the names of the Participants who are selected by the Committee to
receive benefits under Article III.

          Section
1.26 SERP Subaccount means the Memorandum
Subaccount described in section 4.1(d).

4

          Section
1.27 SERP Credits means the credits to a
SERP Subaccount provided for under Article III.

          Section
1.28 Share means a share of Common Stock,
par value Five Dollars ($5) per share, of State Bancorp, Inc. In the event of any business consolidation,
exchange or conversion, recapitalization, reclassification or other event
pursuant to which Shares are exchanged for or converted into other securities
or property any reference to Shares will be deemed to be a reference to such
other securities or property.

          Section
1.29 Service Recipient means with respect
to a Participant on any date: (a) the
corporation for which the Participant is performing services on such date; (b)
all corporations that are liable to the Participant for the benefits due to him
under the Plan; (c) a corporation that is a majority shareholder of a
corporation described in section 1.29(a) or (b); or (d) any corporation in a
chain of corporations each of which is a majority shareholder of another
corporation in the chain, ending in a corporation described in section 1.29 (a)
or (b).

          Section
1.30 Termination of Service means cessation
of all services to all Service Recipients in all capacities other than as a
director of such Service Recipient’s board of directors. The occurrence of a Termination of Service
shall be determined by the Administrator in accordance with section 409A of the
Code and the regulations thereunder.

          Section
1.31 Unforeseeable Emergency means, with
respect to a Participant, a severe financial hardship to the Participant
resulting from an illness or accident of the Participant, the Participant’s
spouse, beneficiary or dependent (within the meaning of section 152 of the
Code, without regard to sections 152(b)(1), (b)(2), and (d)(1)(B) of the Code),
loss of the Participant’s property due to casualty, or other similar
extraordinary and unforeseeable circumstances arising as a result of events
beyond the control of the Participant.
The existence of an Unforeseeable Emergency shall be determined by the
Administrator in accordance with section 409A of the Code and the regulations
thereunder.

          Section
1.32 401(k) Plan means the State Bank of
Long Island 401(k) Retirement Plan and Trust.

Article II

Participation

          Section
2.1 Election to Participate.

                    Any
Officer may elect to become a Participant in the Plan by submitting to the
Administrator a written election, on a form prescribed by the Administrator, to
defer the receipt of all or any portion of his Compensation; provided,
however, that no Officer shall be permitted to defer receipt of
Compensation that is required to be withheld and remitted to any federal, state
or local taxing authority pursuant to any requirement for the collection of tax
at the source or that is required to fund any contribution or premium payment
or co-payment required of the Officer as a condition of participation in any
benefit plan maintained by the Company or any other 

5

Participating Company at the time the election is made; provided,
further, that only the Participants who are listed in Schedule A are
eligible to receive the benefits under Article III. A Officer who elects to become a Participant may make separate
deferral elections with respect to Cash Compensation and Equity
Compensation. The Administrator may
deny participation to any Officer whose initial election to become a
Participant does not contemplate the deferral of a minimum of $2,000 on an
annualized basis.

          Section
2.2 Election to Defer Cash Compensation.

                    An
election to defer Cash Compensation shall specify the amount or percentage of
each payment of Cash Compensation to be deferred, shall be made on or before
the last day of any calendar year and shall be effective for the calendar year
following the calendar year in which such election is made and all subsequent
calendar years unless status as a Officer ceases or a change in the rate of
deferral is elected pursuant to section 2.4; provided, however, that an
initial election to defer Cash Compensation made by a Officer and filed with
the Administrator during the thirty (30) day period immediately following the
date the Officer first becomes eligible to participate in the Plan shall take
effect with the first payment of Cash Compensation that relates to a period of
service that begins after such election is made, or such later date as the
Officer shall specify in his election; and provided, further, that an election to
defer Cash Compensation that constitutes performance based compensation within
the meaning of section 409A of the Code and the regulations thereunder may be
made at any time that is more than six months prior to the last day of the applicable performance measurement period.

          Section
2.3 Election to Defer Equity Compensation.

                    An
election to defer Equity Compensation
shall specify the number of shares or percentage of each payment of Equity
Compensation that is to be deferred, shall be made on or before the first day
of the calendar year in which such Equity Compensation will be paid and prior
to the first day of the period of service for which such Equity Compensation is
earned, and shall be effective for all subsequent calendar years and service
periods, unless status as a Officer ceases or a change in the rate of deferral
is elected pursuant to section 2.4; provided, however, that an initial
election to defer Equity Compensation made by a Officer and filed with the
Administrator during the thirty (30) day period immediately following the date
the Officer first becomes eligible to participate in the Plan shall take effect
with the first payment of Equity Compensation that relates to a period of
service that begins after such election is made, or such later date as the
Officer shall specify in his election.
Acceptance of an election to defer Equity Compensation shall not be held
or construed as a guarantee that any conditions precedent to the payment
thereof (including but not limited to continued employment) will be met or the
amount to be deferred will in fact be earned.

          Section
2.4 Changes in Participation.

                    (a)
An election by a Participant pursuant to section 2.2 shall continue in effect
until termination of status as a Participant; provided, however, that the
Participant may, by written election filed with the Administrator, increase or
decrease the portion of his Cash Compensation to be deferred, or discontinue
such deferral altogether. Such election
shall be effective with respect to Cash Compensation payable for services
rendered after the end of the

6

calendar year in which such election is filed with the Administrator; provided,
however, that if an election provides for the decrease or
discontinuance of the Participant’s deferral of Cash Compensation and is made
on account of Disability or an Unforeseeable Emergency or an Acceleration
Event, such election shall, to the extent permitted under section 409A of the
Code, be effective with respect to Cash Compensation payable after the filing
of such election.

                    (b)
An election by a Participant pursuant to section 2.3 shall continue in effect
until termination of status as a Participant; provided, however, that the
Participant may, by written election filed with the Administrator, increase or
decrease the portion of his Equity Compensation to be deferred, or discontinue
such deferral altogether. Such election
shall be effective with respect to Equity Compensation payable after the
calendar year in which, and on account of a period of service that begins
after, such election is filed with the Administrator; provided, however, that if
an election provides for the decrease or discontinuance of the Participant’s
deferral of Equity Compensation and is made on account of Disability or an
Unforeseeable Emergency or an Acceleration Event, such election shall, to the
extent permitted by section 409A and the regulations thereunder, be effective
with respect to Equity Compensation, payable after the filing of such election.

                    (c)
In the event that a Participant ceases to be an Officer or in the event that an
Officer ceases to defer receipt of his Compensation, the balance in his
Memorandum Account shall continue to be adjusted in accordance with Article
III. An Officer who has filed a written
election to cease deferring receipt of any portion of his Compensation may
thereafter again file an election to defer receipt of his Compensation in the
manner described in sections 2.2 through 2.4.

Article III

Supplemental Employee Retirement Plan
(“SERP”)

          Section
3.1 Eligibility.

                    Participants
who are listed in Schedule A are eligible to receive the SERP Benefits under
sections 3.2 and/or 3.3. The Committee
shall, in its sole and absolute discretion, select the Participants who are
eligible for each calendar year on or before the last day of the preceding
calendar year by naming them in Schedule A and specifying the effective date of
their participation. Once granted by
the Committee, participation in the Plan for purposes of SERP Credits under
this Article III shall continue until the earliest of (a) withdrawal by the
Committee of its grant of participation, (b) termination of the Participant’s
employment with the Company and all Participating Companies, or (c) suspension
or termination of the Plan or this Article III.

          Section
3.2 ESOP SERP Credits.

                    In
the case of each Participant, the Company will credit to a SERP Subaccount, on
or before the last day of each calendar year in which such Participant: (i) has been employed by a Participating
Company; (ii) has been a participant in the ESOP; and (iii) is eligible under
section 3.1, an amount equal to the difference, if any, between: (iv) the amount which would

7

have been contributed to the ESOP as an employer contribution for such
Participant pursuant to its respective terms, conditions and employer
contribution limits in the absence of any Applicable Limitations; and (v) the
actual amount contributed.

          Section
3.3 401(k) SERP Credits.

                    In
the case of each Participant, the Company will credit to a SERP Subaccount, on
or before the last day of each calendar year in which such Participant: (i) has been employed by a Participating
Company; (ii) has been a participant in the 401(k) Plan; and (iii) is eligible
under section 3.1, an amount equal to the difference, if any, between: (iv) the amount which would have been
contributed to the 401(k) as an employer matching or profit sharing
contribution for such Participant pursuant to its respective terms, conditions
and employer contribution limits in the absence of any Applicable Limitations;
and (v) the actual amount contributed.

Article IV

Accounting For Deferred Amounts

          Section
4.1 In General.

	
  

 	
  

 
	
                     The
 Administrator shall maintain a separate Memorandum Account for each
 Participant and may establish within such Memorandum Account two (2) or more
 Memorandum Subaccounts as may be necessary or appropriate to properly
 administer the Plan, including, but not limited to:

 
	
  

 	
  

 
	
  

 	
           (a) a
 separate Memorandum Subaccount for each portion of a Participant’s Memorandum
 Account to which a unique distribution schedule is applicable;

 
	
  

 	
  

 
	
  

 	
           (b) a
 separate Memorandum Subaccount for that portion of a Participant’s Memorandum
 Account that is attributable to Equity Compensation that has been deferred; 

 
	
  

 	
  

 
	
  

 	
           (c) a
 separate Memorandum Subaccount for that portion of a Participant’s Memorandum
 Account that is required to be adjusted for earnings and losses on the basis
 of an Investment Benchmark that is different from the Investment Benchmark(s)
 applicable to other portions of the Memorandum Account; and

 
	
  

 	
  

 
	
  

 	
           (d) a
 separate Memorandum Subaccount for that portion of a Participant’s Memorandum
 Account that is attributable to SERP Credits under Article III.

 
	
  

 	
  

 
	
 Credits, charges, and other adjustments to each Participant’s
 Memorandum Account and any Memorandum Subaccounts shall be made in accordance
 with this Article IV. Neither the
 Company nor any Participating Company shall fund its liability for the
 balances credited to a

 

8

Memorandum Account or Memorandum Subaccount, but each shall reflect its
liability for such balances on its books.

          Section
4.2 Adjustments to Memorandum Accounts.

                    (a)
Each Participant’s Memorandum Account and applicable Memorandum Subaccount(s)
shall be credited with amounts of Compensation deferred by the Participant as
of the date on which such Compensation would have been paid to the Participant
in the absence of a deferral election and SERP Credits, if any, under Article
III. For purposes of this section
4.2(a), Equity Compensation consisting of Shares or other property which would
be taxable for federal income tax purposes pursuant to section 83 of the Code
that is being deferred shall be credited as of the date on which such Shares or
other property become vested or, if earlier, the date on which such Shares or
other property are contractually required to be transferred to the Participant,
as determined by the Administrator, whose determination shall be conclusive and
binding in the absence of manifest error.

                    (b)
Each Participant’s Memorandum Account shall be adjusted to reflect the amount
of earnings, losses, appreciation or depreciation, as appropriate that would
result if the balances credited to the Participant’s Memorandum Account, were
actually invested in Investment Benchmarks according to the following
guidelines:

	
  

 	
  

 
	
  

 	
                     (i)
 That portion of a Participant’s Memorandum Account that is attributable to
 the deferral of Equity Compensation shall be deemed to be invested in Phantom
 Shares for so long as the Administrator may require.

 
	
  

 	
  

 
	
  

 	
                     (ii)
 Any portion of the Participant’s Memorandum Account that is not subject to
 section 4.2(b)(i) shall be deemed to be invested in such Investment
 Benchmarks as the Participant, by notice given in such form and manner and
 subject to such terms, conditions and procedures as the Administrator may
 prescribe, shall designate from time to time. If one of the Investment Benchmarks is Phantom Shares, such
 terms, conditions and procedures shall be designed to prevent the occurrence
 of non-exempt short-swing transactions described in section 16 of the Securities
 Exchange Act of 1934, as amended, to assure compliance with the Company’s
 securities trading policy and applicable federal and state securities laws,
 and unless otherwise determined by the Administrator, to permit the Company
 to account for its liability with respect to such portion of the Memorandum
 Account on the basis of EITF 94-6 or corresponding guidance in subsequent
 accounting standards.

 

                    (c)
The Memorandum Account established for each Participant shall be adjusted from
time to time, but in no event less frequently than quarterly, to reflect:

	
  

 	
  

 
	
  

 	
                     (i)
 credits of deferred Compensation and SERP Credits;

 
	
  

 	
  

 
	
  

 	
                     (ii)
 credits reflecting income, dividends and appreciation attributable to the
 applicable Investment Benchmarks;

 

9

	
  

 	
  

 
	
  

 	
                     (iii)
 charges for losses or depreciation attributable to the applicable Investment
 Benchmarks; and

 
	
  

 	
  

 
	
  

 	
                     (iv)
 charges for payments to the Participant or his Beneficiary.

 
	
  

 	
  

 
	
 Except to the extent otherwise provided by the Administrator, all
 such adjustments in respect of activity during a quarter shall be made as of
 the last day of each quarter.

 

          Section
4.3 Vesting.

                    Subject
to section 6.3, all amounts credited to a Participant’s Memorandum Account
shall be 100% vested at all times.

Article V

Trust

          Section
5.1 Establishment of Trust.

                    The
Company may establish a trust fund which may be used to accumulate funds to
satisfy benefit liabilities to Participants, former Participants and their
Beneficiaries under the Plan; provided, however, that the assets of such
trust shall be subject to the claims of the creditors of the Company in the
event that it is determined that the Company is insolvent; and provided,
further, that the trust agreement shall contain such terms, conditions and
provisions as shall be necessary to cause the Company to be considered the
owner of the trust fund for federal, state and local income tax purposes with
respect to all amounts contributed to the trust fund or any income attributable
to the investments of the trust fund.
The Company shall pay all costs and expenses incurred in establishing
and maintaining such trust. Any
payments made to a Participant, former Participant or Beneficiary from a trust
established under this section 5.1 shall offset payments which would otherwise
be payable by the Company in the absence of the establishment of such
trust. Any such trust will conform to
the terms of the model trust prescribed by Revenue Procedure 92-64, as the same
may be modified from time to time.

          Section
5.2 Contributions to Trust; Investments.

                    If
a trust is established in accordance with section 5.1, each Participating Company
shall make contributions to such trust in such amounts and at such times as may
be specified by the Committee or required pursuant to the terms of any trust
agreement between the Company and the trustee that has been authorized by the
Committee.

          Section
5.3 Unfunded Character of Plan.

                    Notwithstanding
the establishment of a trust pursuant to section 5.1, the Plan shall be
unfunded. Any liability of the Company
or another Participating Company to any person with respect to benefits payable
under the Plan shall be based solely upon such contractual obligations, if any,
as shall be created by the Plan, and shall give rise only to a claim against
the general assets of the Company or such Participating Company. No such liability shall be deemed

10

to be secured by any pledge or any other encumbrance on any specific
property of the Company or a Participating Company.

	
  

 
	
 Article VI

 
	
  

 
	
 Life Insurance

 

          Section
6.1 Authority to Purchase Life Insurance.

                    To
assist it in meeting its financial obligations under the Plan, the Company may
purchase and hold, or may cause the trustee of a trust described in Article V
to purchase and hold, insurance on the life or lives of such Participant or
Participants in such amounts as the Committee may determine. By electing to
defer Compensation under the Plan, a Participant shall be deemed to have
authorized and consented to such purchase.

          Section
6.2 Cooperation to Effect Purchases.

                    Each
Participant shall take such actions (including but not limited to submitting to
such physical examinations, providing such medical information and executing
such applications, consents to the purchase of insurance and other documents
and instruments) as the Administrator may reasonably request to facilitate the
purchase of insurance authorized by the Committee. Any person who fails or
refuses to cooperate in the purchase of such insurance may, in the discretion
of the Committee, be denied the right of future participation in the Plan, such
denial to be effected in a manner that complies with the requirements of
section 409A of the Code. No person shall be denied eligibility to participate
in the Plan solely because he is deemed uninsurable by the carrier or carriers
designated by the Committee.

          Section
6.3 Ownership of Policies.

                    The
Company (or, if applicable, a trust described Article VI) shall be the legal
owner of any life insurance policies purchased under the Plan and shall have
and enjoy all of the incidents of ownership, including, but not limited to, the
right to cancel, surrender, extend or assign the policy in whole or in part,
the right to exercise borrowing privileges against the cash value of the
policy, the right designate the beneficiary of any death benefit proceeds that
may become payable thereunder, the right to receive policy dividends, the right
exercise voting rights with respect to all matters on which the holder of the
policy may vote, and, in the case of a mutual insurance company, the right to
participate in and receive and hold any proceeds distributed in relation to the
policy in connection with any demutualization transaction. In no event shall
the Participant, his Beneficiary or his heirs, successors or assigns have any
rights in, to or under any such policy, including but not limited to the right
to receive any portion of any death benefit proceeds that may be payable upon
the death of the Participant. In the event that the Participant, his designated
Beneficiary or any of his heirs, successors or assigns attempts to challenge
the rights of the Company (or, if applicable, a trust described Article VI),
then, in addition to any other rights and remedies that may be available, any
balance credited to the Participant’s Memorandum Account that is then unpaid
shall be forfeited.

          Section
6.4 Effect of Termination of Participation.

11

                    Neither
the cessation of a Participant’s performance of services for the Company or any
Participating Employer, nor the cessation of a Participant’s deferrals of
Compensation under the Plan, nor the complete distribution of the balance
credited to the Participant’s Memorandum Account shall have any effect on the
authority of the Company (or, if applicable, a trust described Article V) to
continue any life insurance policy then in effect on the life of such
Participants for such future period as the Committee may determine, including
but limited to the period extending through the date of the Participant’s death.

	
  

 
	
 Article VII

 
	
  

 
	
 Distributions

 

          Section 7.1 Early Distributions.

                    (a)
In the event that a Participant has suffered an Unforeseeable Emergency, the
Administrator may, in its sole discretion and to the extent permitted under
section 409A of the Code, allow such Participant to obtain a lump sum
withdrawal of an amount credited to his Memorandum Account that does not exceed
the amount necessary to alleviate the Unforeseeable Emergency.

                    (b)
In the event of a Participant’s Disability, the Administrator may, in its sole
discretion and to the extent permitted under section 409A of the Code, allow
the Participant to obtain a lump sum withdrawal of the entire balance credited
to his Memorandum Account.

                    (c)
To the extent required to comply with the terms of a domestic relations order
(within the meaning of section 414(p) of the Code) directed to and served upon
the Plan, the Administrator may direct the payment of all or any portion of the
balance credited to a Participant’s Memorandum Account at any time or in
accordance with any payment schedule set forth in said order.

                    (d)
To the extent necessary to effect compliance with a certificate of divestiture
(within the meaning of section 1043(b)(2) of the Code), the Administrator may
permit the distribution of all or a portion of the balance credited to a
Participant’s Memorandum Account earlier than the times determined under
section 7.2 

                    (e)
Unless otherwise provided in an election that complies with section 7.2(a) or
(b), the entire balance credited to a Participant’s Memorandum Account shall be
paid in a single lump sum upon the occurrence, after December 31, 2008, of a
Change in Control Event.

          Section
7.2 Scheduled Distributions to Participants.

                    (a)
Upon a Participant’s Termination of Service and in the event that such
Participant has not made an election for payment of deferred balances, an
amount equal to the balance credited to such Participant’s Memorandum Account
shall be paid to the Participant in a single payment on the first day of the
calendar year after the calendar year in which such Termination of Service
occurs; provided,
however, that if a Participant so elects in his initial election to
participate or in any subsequent deferral election, payment of balances
attributable to amounts deferred pursuant to such election may be made:

12

	
  

 	
  

 
	
  

 	
                     
 (i) in a single payment as of some other date (not earlier than the first day
 of the calendar year following the calendar year that includes the third
 anniversary of the effective date of the election) specified by the
 Participant in his election; or

 
	
  

 	
  

 
	
  

 	
                     
 (ii) in monthly, quarterly or annual installments over such number of years
 (not to exceed fifteen (15)) and payable beginning on such date (not earlier
 than the first day of the calendar year following the calendar year that
 includes the third anniversary of the effective date of the election)
 specified by the Participant in his election. In the event that payment is to
 be made in installments, each installment shall be equal to the balance
 credited to the Participant’s Memorandum Account (or, if applicable,
 Memorandum Subaccount) as of the last day of the quarter ending immediately
 prior to the date on which payment is to be made, divided by the number of
 installment payments remaining to be paid (including the payment then being
 computed). Any portion of the balance credited to the Participant’s
 Memorandum Account that has not been paid shall continue to be adjusted
 pursuant to Article V, in accordance with the Investment Benchmarks in which
 the Participant’s Memorandum Account is deemed to be invested, until a
 distribution with respect to such amount has been made.

 

                    (b)
Notwithstanding section 7.2(a), each Participant may, by written election given
in such form and manner as the Administrator may prescribe, elect to change the
time and manner of distribution of the balance credited to any Memorandum
Subaccount; provided,
however, that:

	
  

 	
  

 
	
  

 	
                     
 (i) any such election shall not take effect until twelve (12) months after it
 is received by the Administrator; and

 
	
  

 	
  

 
	
  

 	
                     
 (ii) in the case of an election to defer a payment to be made on account of
 an event other than the Participant’s death, Disability or Unforeseeable
 Emergency, the first payment made under such election shall not occur until
 at least five (5) years later than such payment would otherwise have been made;
 and

 
	
  

 	
  

 
	
  

 	
                     
 (iii) in the case of an election to defer a payment to be made at a specified
 time or pursuant to a specified payment schedule, such election shall be made
 at least twelve (12) months prior to the date of the first payment scheduled
 to be made.

 

Any such election shall conform to the requirements of section 409A of
the Code and the regulations thereunder.

                    (c)
Distributions shall be made on the date the Participant becomes entitled to
payment pursuant to this section 7.2. Distributions of balances deemed to be
invested in Phantom Shares shall, unless the Administrator determines
otherwise, be made in whole Shares (with cash paid in lieu of fractional
Shares); and all other distributions shall be made in cash unless the
Administrator, in its sole and absolute discretion, permits other forms of
distribution. 

13

          Section
7.3 Distributions to Beneficiaries.

                    (a)
A Participant may designate a Beneficiary or Beneficiaries by filing a written
notice with the Administrator prior to the Participant’s death, in such form
and manner as the Administrator may prescribe. A Participant who has designated
a Beneficiary or Beneficiaries may change or revoke such designation prior to the
Participant’s death by means of a similar written instrument.

                    (b)
In the event that a Participant dies before receiving payment of his entire
Memorandum Account, payment of the value of the deceased Participant’s
Memorandum Account shall be made in a lump sum to his Beneficiary or
Beneficiaries ninety (90) days after the Participant’s death. If no Beneficiary
shall have been designated or if any such designation shall be ineffective, or
in the event that no designated Beneficiary survives the Participant, payment
of the value of the Participant’s Memorandum Account shall be made to the
Participant’s personal representative, or if no personal representative is
appointed within ninety (90) days after the Participant’s death or such longer period
as the Administrator deems reasonable in its discretion exercised in a manner
that conforms to section 409A of the Code, to his surviving spouse, or if he
has no surviving spouse, to his then living descendants, per stirpes, in the
same manner and at the same time as the Participant’s Memorandum Account would
have been paid to a Beneficiary. If any Participant and any one or more of his
designated Beneficiary(ies) shall die in circumstances that leave substantial
doubt as to who shall have been the first to die, the Participant shall be
deemed to have survived the deceased Beneficiary(ies). The presence of
substantial doubt for such purposes shall be determined by the Administrator in
its sole and absolute discretion. 

          Section
7.4 Mandatory Cashout of Small Balances.

                    Notwithstanding
anything in the Plan to the contrary, except as provided in section 7.5, if, as
of December 31 of any calendar year following a Participant’s termination of
service with all Participating Companies, the balance credited to his
Memorandum Account is $10,000 or less, the entire balance credited to his
Memorandum Account shall be distributed in a single lump sum payment as soon as
practicable during the immediately following calendar year.

          Section
7.5 Restrictions on Payments to Specified Employees.

                    Notwithstanding anything in the Plan to the contrary, to the extent
required under section 409A of the Code: (a) no payment to be made to a
specified employee (within the meaning of section 409A of the Code) on account
of his Termination of Service shall be made sooner than, and shall be deferred
to, six (6) months after such Termination of Service; and (b) no such payment
shall be accelerated to a date that is sooner than six (6) months after Termination
of Service on account of Disability, Unforeseeable Emergency or a Change in
Control Event that occurs after Termination of Service; provided, however, that this
section 7.5 shall only be effective if at the time of such Termination of
Service the Company is a corporation any stock in which is publicly traded on
an established securities market or otherwise (within the meaning of section
409A(a)(2)(B)(i) of the Code).

          Section
7.6 One-Time
Election During 2007 and 2008 

14

                    (a)
Notwithstanding anything in the Plan to the contrary, a Participant may, at any
time prior to January 1, 2008, elect a new time and form of payment for the
balance credited to his Memorandum Account as of December 31, 2007; provided,
however, that the payment (or the first payment in a series of
payments) (a) shall be made no earlier than January 1, 2008 and (b) shall be
made in a single lump sum or by monthly, quarterly or annual installments for a
period not to exceed fifteen (15) years. Such an election shall be made in the
form and manner to be determined by the Administrator.

                    (b)
Notwithstanding anything in the Plan to the contrary, a Participant may, at any
time prior to January 1, 2009, elect a new time and form of payment for the
balance credited to his Memorandum Account as of December 31, 2008; provided,
however, that the payment (or the first payment in a series of
payments) (a) shall be made no earlier than January 1, 2009 and (b) shall be
made in a single lump sum or by monthly, quarterly or annual installments for a
period not to exceed fifteen (15) years. Such an election shall be made in the
form and manner to be determined by the Administrator.

	
  

 
	
 Article VIII

 
	
  

 
	
 Administration

 

          Section 8.1 Administrator.

                    The
Administrator 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. The 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 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 or evidence of any matter from any person as may be necessary or
 appropriate in the administration of the Plan;

 
	
  

 	
  

 
	
  

 	
           (e) to determine any question arising in
 connection with the Plan, including any question of Plan interpretation, and
 the Administrator’s decision or action in respect thereof shall be final and
 conclusive and binding upon all persons having an interest under the Plan;
 provided however, that any question relating to inconsistency or omission in
 the Plan, or interpretation of the 

 

15

	
  

 	
  

 
	
  

 	
 provisions of the Plan, shall be referred to the Committee by the
 Administrator and the decision of the Committee in respect thereof shall be
 final;

 
	
  

 	
  

 
	
  

 	
            (f) to
 review and dispose of claims under the Plan filed pursuant to section 8.3 and
 appeals of claims decisions pursuant to section 8.4;

 
	
  

 	
  

 
	
  

 	
            (g) if
 the Administrator shall determine that by reason of illness, senility,
 insanity, or for any other reason, it is undesirable to make any payment to
 the person entitled thereto, to direct the application of any amount so
 payable to the use or benefit of such person in any manner that the
 Administrator may deem advisable or to direct in the Administrator’s
 discretion, exercised in a manner that conforms to section 409A of the Code,
 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;

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 

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

          Section
8.2 Committee Responsibilities.

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

	
  

 	
  

 
	
  

 	
           (a) to
 review the performance of the Administrator;

 
	
  

 	
  

 
	
  

 	
           (b) to
 hear and decide appeals, pursuant to the claims procedure contained in
 section 8.4 of the Plan, taken from the decisions of the Administrator;

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
           (d) to
 report and make recommendations to the Board regarding changes in the Plan,
 including changes in the operation and management of the Plan;

 
	
  

 	
  

 
	
  

 	
           (e) to
 designate an alternate Administrator to serve in the event that the
 Administrator is absent or otherwise unable to discharge his
 responsibilities;

 

16

	
  

 	
  

 
	
  

 	
            (f) to
 remove and replace the Administrator or alternate, or both of them, and to
 fill a vacancy in either office;

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
            (h) to
 perform any duty or to 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. The Committee may take action
under the Plan by vote of a majority of the members present at any meeting of the
Committee at which a quorum is present or by unanimous written consent in lieu
of meeting. No member of the Committee shall participate in any action or
decision in which he has a personal interest unless all members of the
Committee voting on such matter are similarly interested. The Committee may
delegate to one of its members, to the Administrator or to any Officer of the
Company or any other Participating Company the power and responsibility, to the
extent not expressly allocated under the Plan to the Administrator, to sign
instruments and other communications in its behalf and to take appropriate
action to implement the Committee’s decisions.

          Section
8.3 Claims Procedure.

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

	
  

 	
  

 
	
  

 	
            (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 8.4 Claims Review Procedure.

                    Any
person whose claim filed pursuant to section 8.3 has been denied in whole or in
part by the Administrator may request review of the claim by the Committee,
upon a form prescribed by the Administrator. The claimant shall file such form
(including a statement of his position) with the Committee no later than sixty
(60) days after the mailing or delivery of the written notice of denial
provided for in section 8.3, or, if such notice is not provided, within sixty

17

(60) days after such claim is
deemed denied pursuant to section 8.3. 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 thirty (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
one hundred twenty (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 Participating Company, and the Administrator shall take appropriate
action to carry out such decision.

          Section
8.5 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 8.4 prior to initiating
any claim for judicial review.

                    (b)
neither the members of the Committee, the Administrator, nor any Officer or
employee of a Participating Company to whom responsibilities are assigned under
the Plan 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.

                    (c)
The Administrator or the Committee may, shorten, extend or waive the time (but
not beyond sixty (60) days) required by the Plan for filing any notice or other
form with the Administrator or Committee, or taking any other action under the
Plan; provided,
however, that no such shortening, extension or waiver shall be done
that would cause any Participant to be in constructive receipt of the balance
credited his Memorandum Account prior to the date on which such balance is
scheduled to be paid or otherwise violate section 409A of the Code.

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

                    (e)
Any action taken or omitted by the Administrator or the Committee or any
delegate of the Committee with respect to the Plan, including any decision,
interpretation, claim denial or review on appeal, shall be conclusive and
binding on and 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.

	
  

 
	
 Article IX

 
	
  

 
	
 Amendment And Termination

 

18

          Section
9.1 Amendment by the Company.

                    The
Company reserves the right, in its sole and absolute discretion, at any time
and from time to time, by action of the Board, to amend the Plan in whole or in
part. In no event, however, shall any such amendment adversely affect the right
of any Participant, former Participant or Beneficiary to receive any benefits under
the Plan in respect of participation for any period ending on or before the
later of the date on which such amendment is adopted or the date on which it is
made effective.

          Section
9.2 Termination.

                    (a)
The Company reserves the right, in its sole and absolute discretion, by action
of the Board, to terminate the Plan, but only in the following circumstances:

	
  

 	
  

 
	
  

 	
                     (i)
 within thirty (30) days before or twelve (12) months after any Change in
 Control Event; provided, however, that in such event, all agreements,
 methods, programs, and other arrangements sponsored by the Company
 immediately after the time of the Change in Control Event with respect to
 which deferrals of compensation are treated as having been deferred under a
 single plan (under section 409A of the Code and the regulations thereunder)
 are terminated and liquidated with respect to each Participant that
 experienced the Change in Control Event, so that under the terms of the
 termination and liquidation all such Participants are required to receive all
 amounts of compensation deferred under the terminated agreements, methods,
 programs, and other arrangements within twelve (12) months of the date the
 Company irrevocably takes all necessary action to terminate and liquidate the
 agreements, methods, programs, and other arrangements.

 
	
  

 	
  

 
	
  

 	
                     (ii)
 at such other time and in such other circumstances as may be permitted under
 section 409A of the Code.

 
	
  

 	
  

 
	
                     (b)
 The Company reserves the right, in its sole and absolute discretion, by
 action of the Board, to suspend the operation of the Plan, but only in the
 following circumstances:

 
	
  

 	
  

 
	
  

 	
                     (i)
 With respect to Compensation to be earned and paid in calendar years beginning
 after the date of adoption of the resolution suspending the operation of the
 Plan; and

 
	
  

 	
  

 
	
  

 	
                     (ii)
 At such other time and in such other circumstances as may be permitted under
 section 409A of the Code.

 

In such event, no further Compensation shall be deferred following the
effective date of the suspension and Memorandum Accounts in existence prior to
such date shall continue to be maintained, and payments shall continue to be
made, in accordance with the provisions of the Plan.

          Section
9.3 Amendment or Termination by Other Companies.

19

                    In
the event that a corporation or trade or business other than the Company shall
adopt this Plan, such corporation or trade or business shall, by adopting the
Plan, empower the Company 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 sections 9.1 and 9.2; 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 any amounts set aside
to provide for the satisfaction of benefit liabilities with respect to
employees of such corporation or trade or business shall be segregated from the
assets set aside for the purposes of this Plan at the earliest practicable date
and shall be dealt with in accordance with the documents governing such
separate plan.

	
  

 
	
 Article X

 
	
 Miscellaneous Provisions

 

          Section
10.1 Notice and Election.

                    The Administrator shall provide a copy of this Plan and the resolutions
of adoption to each Officer who becomes eligible to participate, together with
a form on which the Officer may notify the Administrator of his election
whether to become a Participant, which form, if he so elects, he may complete,
sign and return to the Administrator. 

          Section
10.2 Construction and 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
the masculine gender may be read as referring equally to the feminine gender or
the neuter.

          Section
10.3 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
10.4 Non-Alienation of Benefits.

                    Except
as may otherwise be required by law, no distribution or payment under the Plan
to any Participant, former Participant or Beneficiary shall be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance or charge, whether voluntary or involuntary, and any attempt to so
anticipate, alienate, sell, transfer, assign, pledge, encumber or charge the
same shall be void; nor shall any such distribution or payment be in any way
liable for or subject to the debts, contracts, liabilities, engagements or
torts of any person 

20

entitled to such distribution or payment. If any Participant, former
Participant or Beneficiary is adjudicated bankrupt or purports to anticipate,
alienate, sell, transfer, assign, pledge encumber or charge any such
distribution or payment, voluntarily or involuntarily, the Committee, in its
sole discretion, may cancel such distribution or payment or may hold or cause
to be held or applied such distribution or payment, or any part thereof, to or
for the benefit of such Participant, former Participant or Beneficiary, in such
manner as the Committee shall direct; provided, however, that no such action by
the Committee shall cause the acceleration or deferral of any benefit payments
from the date on which such payments are scheduled to be made.

          Section
10.5 Severability.

                    A
determination that any provision of the Plan is invalid or unenforceable shall
not affect the validity or enforceability of any other provision hereof.

          Section
10.6 Waiver.

                    Failure
to insist upon strict compliance with any of the terms, covenants or conditions
of the Plan shall not be deemed a waiver of such term, covenant or condition. A
waiver of any provision of the Plan must be made in writing, designated as a
waiver, and signed by the party against whom its enforcement is sought. Any
waiver or relinquishment of any right or power hereunder at any one or more times
shall not be deemed a waiver or relinquishment of such right or power at any
other time or times.

          Section
10.7 Governing Law.

                    The
Plan shall be construed, administered and enforced according to the laws of the
State of New York without giving effect to the conflict of laws principles
thereof, except to the extent that such laws are preempted by federal law. The
federal and state courts having jurisdiction in New York County, New York shall
have exclusive jurisdiction over any claim, action, complaint or lawsuit
brought under the terms of the Plan or in any way relating to the rights or
obligations of any person under, or the acts or omissions of the Company, the
Board, the Administrator, the Committee on any duly authorized person acting in
their behalf in relation to, the Plan. By electing to participate in this Plan,
the Participant, for himself and any other person claiming any rights under the
Plan through him, agrees to submit himself, and any such legal action described
herein that he shall bring, to the sole jurisdiction of such courts for the
adjudication and resolution of such disputes. Any payments made pursuant to
this Plan are subject to and conditioned upon their compliance with 12 U.S.C. §
1828(k) and any regulations promulgated thereunder.

          Section
10.8 Withholding.

                    
Payments from this Plan shall be subject to all applicable federal, state and
local income withholding taxes. The Company, State Bank of Long Island, and any
other Participating Company or the Committee shall have the right to require
any person entitled to receive a distribution in Shares under this Plan to pay
the amount of any tax which is required to 

21

be withheld with respect to such Shares, or, in lieu thereof, to cancel
without notice, a sufficient number of Phantom Shares to cover the amount
required to be withheld.

          Section
10.9 No Deposit Account.

                    
Nothing in this Plan shall be held or construed to establish any deposit
account for any Participant or any deposit liability on the part of the Company
or any Participating Company. Participants’ rights hereunder shall be
equivalent to those of a general unsecured creditor of each Participating
Company.

          Section
10.10 Rights of Participants.

                    No
Participant shall have any right or claim to any benefit under the Plan except
in accordance with the provisions of the Plan. The establishment of the Plan
shall not be construed as conferring upon any Participant or other person any
legal right to a continuation of service or to any terms or conditions of
service, nor as limiting or qualifying the right of a Participating Company,
its board of directors or its stockholders to remove any Officer or to fail to
re-elect him or her or decline to nominate him or her for re-election.

          Section
10.11 Status of Plan Under ERISA.

                    The
Plan is intended to be a non-qualified deferred compensation plan
maintained exclusively for employees. The Plan is not intended to comply with
the requirements of section 401(a) of the Code or to be subject to Parts 2, 3
and 4 of Title I of ERISA. The Plan shall be administered and construed so as
to effectuate this intent.

          Section
10.12 Successors and Assigns.

                    The
provisions of the Plan will inure to the benefit of and be binding upon the
Participants and their respective legal representatives and testate or
intestate distributes, and each Participating Company and their respective
successors and assigns, including any successor by merger or consolidation or a
statutory receiver or any other person or firm or corporation to which all or
substantially all of the assets and business of any Participating Company may
be sold or otherwise transferred.

          Section
10.13 Non-dilution Provisions.

                    
In the event of any merger, consolidation, or other business reorganization
involving the Company, and in the event of any stock split, stock dividend or
other event generally affecting the number of Shares held by each person who is
then a holder of record of Shares, and in the event of any other occurrence
which, in the judgment of the Committee warrants an adjustment to avoid
unintended enhancement or dilution of the rights of one or more Participants
under the Plan, the number of Phantom Units credited to each Participant’s
Memorandum Account, and the unit value thereof, shall be adjusted to account
for such event. Such adjustment shall be effected in such manner as the
Committee shall determine to be appropriate in order to prevent the enlargement
or diminution of any Participant’s rights under the Plan.

22

          Section
10.14 Compliance with Section 409A of the Code.

                    The
Plan is intended to be a non-qualified deferred compensation plan described in
section 409A of the Code. The Plan shall be operated, administered and
construed to give effect to such intent. In addition, notwithstanding section
9.1, the Plan shall be subject to amendment, with or without advance notice to
Participants and other interested parties, and on a prospective or retroactive
basis, including but not limited to amendment in a manner that adversely
affects the rights of participants and other interested parties, to the extent
necessary to effect such compliance.

          Section
10.15 Effect on Existing deferred Compensation Arrangements.

                    The
terms and conditions of this Plan shall, effective as of December 31, 2007,
amend, restate and supersede in their entirety the terms, conditions and provisions
of any pre-existing deferred compensation arrangement between State Bancorp.,
Inc. or State Bank of Long Island and any Officer who consents thereto prior to
December 31, 2007. Such consent shall constitute authorization to transfer
accumulated balances under such pre-existing arrangements to the books and
records of this Plan.

23

SCHEDULE A

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 NAME

 	
  

 	
 EFFECTIVE DATE OF

 PARTICIPATION

 	
  

 	
 EFFECTIVE DATE OF

 TERMINATION OF

 PARTICIPATION

 
	

 

 	

 

 	

 

 	

 

 	

 

 
	

 

 	

 

 	

 

 	

 

 	

 

 
	

 

 	

 

 	

 

 	

 

 	

 

 
	

 

 	

 

 	

 

 	

 

 	

 

 
	

 

 	

 

 	

 

 	

 

 	

 

 
	

 

 	

 

 	

 

 	

 

 	

 

 
	

 

 	

 

 	

 

 	

 

 	

 

 
	

 

 	

 

 	

 

 	

 

 	

 

 
	

 

 	

 

 	

 

 	

 

 	

 

 
	

 

 	

 

 	

 

 	

 

 	

 

 
	

 

 	

 

 	

 

 	

 

 	

 

 
	

 

 	

 

 	

 

 	

 

 	

 

 
	

 

 	

 

 	

 

 	

 

 	

 

 
	

 

 	

 

 	

 

 	

 

 	

 

 
	

 

 	

 

 	

 

 	

 

 	

 

 
	

 

 	

 

 	

 

 	

 

 	

 

 
	

 

 	

 

 	

 

 	

 

 	

 

 
	

 

 	

 

 	

 

 	

 

 	

 

 
	

 

 	

 

 	

 

 	

 

 	

 

 
	

 

 	

 

 	

 

 	

 

 	

 

 
	

 

 	

 

 	

 

 	

 

 	

 

 
	

 

 	

 

 	

 

 	

 

 	

 

 
	

 

 	

 

 	

 

 	

 

 	

 

 

24

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00186-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00186-of-00352.parquet"}]]