Document:

ADDENDUM TO
                              EMPLOYMENT AGREEMENT
                                 BY AND BETWEEN
                         ATLANTIC LIBERTY SAVINGS, F.A.
                                       AND
                              WILLIAM M. GILFILLAN

     This Addendum (the  "Addendum") to that certain  employment  agreement (the
"Association  Employment  Agreement") by and between  Atlantic  Liberty Savings,
F.A., a federally  chartered savings association (the  "Association"),  with its
principal  administrative  office at 186  Montague  Street,  Brooklyn,  New York
11201-3001,  and William M. Gilfillan ("Executive") is made effective as of this
20th day of December, 2005.

     WHEREAS, Executive is currently employed as Executive Vice President, Chief
Financial  Officer and Corporate  Secretary of the  Association,  a wholly-owned
subsidiary of Atlantic  Liberty  Financial  Corp., a Delaware  corporation  (the
"Company"); and

     WHEREAS,  new Section 409A of the Internal Revenue Code of 1986, as amended
("Code"),  which is initially  effective in 2005, has deemed certain  employment
agreements to be deferred compensation, subject to its provisions; and

     WHEREAS,  the  Association  and Executive  desire to update the Association
Employment  Agreement  to conform to the  provisions  and  requirements  of Code
Section 409A.

     NOW,  THEREFORE,  in consideration of the premises and the mutual covenants
and conditions hereinafter set forth, the Association and Executive hereby agree
to the following amendments to the Association  Employment  Agreement,  it being
understood  and agreed that except to the amendments  specifically  provided for
herein, the remaining terms of the Association Employment Agreement shall remain
in full force and effect:

     1. Section 6 of the Association Employment Agreement is hereby renamed:

     "PAYMENTS TO EXECUTIVE UPON AN EVENT OF TERMINATION OR CHANGE IN CONTROL."

     2. Section  6(a)(iii)  of the  Association  Employment  Agreement is hereby
        replaced in its entirety with the following:

         "(iii)   Upon the occurrence of an Event of Termination,  as defined in
                  Section  6(a)(i)  or  (ii),  on the  Date of  Termination,  as
                  defined in Section 9(b), the Association  shall pay Executive,
                  or, in the event of his subsequent  death,  his beneficiary or
                  beneficiaries, or his estate, as the case may be, as severance
                  pay or liquidated  damages,  or both, a sum equal to three (3)
                  times the sum of (x) the  average  annual  rate of Base Salary
                  paid  in the  last  three  (3)  years  ending  in the  year of
                  termination  and (y) the  average  rate of  bonus  awarded  to
                  Executive during the prior three years.  Payment of the amount
                  required hereunder shall be made on the first

<PAGE>

                  day of the seventh month following Executive's Separation from
                  Service if Executive is a Specified Employee and such delay is
                  required by Code Section 409A. For these  purposes,  the terms
                  `Specified  Employee' and `Separation from Service' shall have
                  the meaning required by Code Section 409A. Such payments shall
                  not be reduced in the event Executive obtains other employment
                  following termination of employment."

     3. Section 6(b) of the Association  Employment Agreement is hereby replaced
        in its entirety with the following:

     "(b) The  provisions  of Section 6(b) shall apply upon the  occurrence of a
Change in Control during the term of this Agreement. In the event of a Change in
Control of the  Association  or  Company,  Executive  shall be entitled to a sum
equal to three (3) times the sum of (x) the  highest  annual rate of Base Salary
and (y) the highest  annual bonus  awarded to  Executive  during the prior three
years.  Payment of the amount required  hereunder shall be made on the effective
date of the Change in Control.  Notwithstanding anything to the contrary herein,
only  if  required  by Code  Section  409A,  if the  Executive  is a  "Specified
Employee"  within  the  meaning  of Code  Section  409A,  the  payment  required
hereunder  shall be made no  earlier  than the  first day of the  seventh  month
following Executive's  Separation from Service, as defined in Code Section 409A.
For the  purposes of this  Agreement,  a Change in Control of the Company or the
Association  shall mean a change in ownership of the Company or the  Association
under  paragraph (i) below, a change in effective  control of the Company or the
Association  under  paragraph  (ii)  below,  or a change in the  ownership  of a
substantial  portion  of the  assets of the  Company  or the  Association  under
paragraph (iii) below:

         (i)      Change in the ownership of the Company or the  Association.  A
                  change in the  ownership  of the  Company  or the  Association
                  shall occur on the date that any one person,  or more than one
                  person  acting as a group (as  defined  in  Proposed  Treasury
                  Regulation   Section    1.409A-3(g)(5)(v)(B)   or   subsequent
                  guidance),  acquires  ownership  of stock  of the  corporation
                  that,  together  with  stock  held by such  person  or  group,
                  constitutes  more than 50  percent  of the total  fair  market
                  value or total voting power of the stock of such corporation.

         (ii)     Change  in  the  effective  control  of  the  Company  or  the
                  Association.  A change in the effective control of the Company
                  or the Association shall occur on the date that either (i) any
                  one  person,  or more  than one  person  acting as a group (as
                  defined    in    Proposed    Treasury    Regulation    Section
                  1.409A-3(g)(5)(v)(B) or subsequent guidance), acquires (or has
                  acquired  during the 12-month period ending on the date of the
                  most recent  acquisition by such person or persons)  ownership
                  of stock of the  corporation  possessing 35 percent or more of
                  the total  voting power of the stock of such  corporation;  or
                  (ii) a  majority  of  members  of the  corporation's  Board of
                  Directors is replaced  during any 12-month period by directors
                  whose appointment or election is not endorsed by a majority of
                  the members of the  corporation's  Board of Directors prior to
                  the date of the  appointment  or election,  provided that this
                  sub-section (ii) is inapplicable where a majority  shareholder
                  of the Company or the Association is another corporation.

                                       2
<PAGE>

         (iii)    Change  in  the  ownership  of a  substantial  portion  of the
                  Company's  or  the  Association's  assets.  A  change  in  the
                  ownership  of a  substantial  portion of the  Company's or the
                  Association's  assets  shall  occur on the  date  that any one
                  person,  or more than one person acting as a group (as defined
                  in Proposed Treasury  Regulation Section  1.409A-3(g)(5)(v)(B)
                  or subsequent guidance),  acquires (or has acquired during the
                  12-month  period  ending  on  the  date  of  the  most  recent
                  acquisition  by  such  person  or  persons)  assets  from  the
                  corporation that have a total gross fair market value equal to
                  or more than 40 percent of the total gross fair  market  value
                  of (i) all of the assets of the Company or the Association, or
                  (ii) the value of the  assets  being  disposed  of,  either of
                  which  is  determined   without  regard  to  any   liabilities
                  associated with such assets.

         (iv)     For all  purposes  hereunder,  the  definition  of  Change  in
                  Control  shall  be  construed  to  be   consistent   with  the
                  requirements   of   Proposed   Treasury   Regulation   Section
                  1.409A-3(g) or subsequent guidance."

     4. Section 6(c) of the Association  Employment  Agreement shall be replaced
        in its entirety with the following:

     "(c) Upon the occurrence of an Event of Termination under Section 6(a) or a
Change in Control under Section 6(b), the Association will cause to be continued
life,  medical,  dental and disability coverage  substantially  identical to the
coverage  maintained by the  Association  for  Executive  prior to such event or
Change in Control. Such coverage, or in lieu thereof, a payment of not less than
$12,000  per annum,  shall  continue  until  thirty-six  (36)  months  following
Executive's termination of employment."

     5. Section 6(d) of the Association Employment Agreement shall be amended by
        replacing  the  introductory   clause  "Upon  the  occurrence  of  an
        Event  of Termination," with the following clause:

     "Upon the occurrence of an Event of Termination or a Change in Control,"

     6. Sections 6(e) and 6(f) of the Association  Employment Agreement shall be
        amended by replacing the introductory clause "Upon the occurrence of an
        Event of Termination, within sixty (60) days (or within such shorter
        period to the extent that information can reasonably be obtained)
        following  Executive's  termination of employment with the Association,"
        with the following clause:

     "Upon the  occurrence  of an Event of  Termination  or a Change in Control,
within  sixty  (60) days (or  within  such  shorter  period to the  extent  that
information   can  reasonably  be  obtained)  of  the  event  which  triggers  a
distribution hereunder,"

                                       3
<PAGE>

     7.  A new  Section  6(i)  shall  be  added  to the  Association  Employment
         Agreement which shall read as follows:

     "(i) Payments made under Section 6(b) above shall be made  irrespective  of
     whether  termination of employment has occurred.  Notwithstanding  anything
     herein to the contrary, Executive shall only be entitled to a payment under
     the first to occur of an Event of  Termination  under  Section  6(a),  or a
     Change  in  Control  under  Section  6(b).  Payments  under  one  of  these
     alternatives shall preclude payments under the other."

     8. Section 10 of the Association Employment Agreement is hereby renamed:

     "POST-PAYMENT OBLIGATIONS."

     IN WITNESS  WHEREOF,  the  Association  and the  Company  have  caused this
Addendum to be executed on their behalf by their duly authorized  officers,  and
Executive has set his hand as of the date first written above.

                                            ATLANTIC LIBERTY SAVINGS, F.A.

Dated:   December 20, 2005                  By: /s/ Richard T. Arkwright
         ---------------------------            -------------------------------

                                            ATLANTIC LIBERTY FINANCIAL CORP.

Dated:   December 20, 2005                  By: /s/ Richard T. Arkwright
         ---------------------------            -------------------------------

                                            EXECUTIVE

Dated:   December 20, 2005                  By: /s/ William M. Gilfillan
         ---------------------------            -------------------------------
                                                William M. Gilfillan

                                       4NON-COMPETlTION AGREEMENT

     This  Non-competition  Agreement  (this  "Agreement") is entered into as of
December 20, 2005 by and between William M. Gilfillan, residing at 25 Sunnywoods
Drive,  Huntington  Station,  New York,  11746 (the  "Executive")  and  Flushing
Financial Corporation,  a Delaware corporation ("FFC"). Terms not defined herein
shall have the meanings ascribed to them in the Merger Agreement.

                              W I T N E S S E T H:

     WHEREAS,  pursuant to an Agreement and Plan of Merger, dated as of December
20, 2005 (the  "Merger  Agreement"),  by and between FFC and Breezy,  a Delaware
corporation ("Breezy"), Breezy will merge with and into FFC (the "Merger");

     WHEREAS,  the Merger Agreement  provides that subsequent to consummation of
the Merger, Breezy Bank shall be merged with and into FFC Savings Bank, FSB;

     WHEREAS,   Section   6.11  of  the  Merger   Agreement   requires   that  a
Non-competition agreement be executed and delivered by each of the Executive and
FFC as a condition precedent to the consummation of the Merger;

     WHEREAS,  the parties hereto  recognize and acknowledge that this Agreement
is necessary to protect the business and goodwill  acquired by FFC in connection
with the Merger,

     WHEREAS,  Breezy and the Executive are parties to an Employment  Agreement,
dated as of December  15, 2004 (the  "Employment  Agreement")  pursuant to which
Executive  has agreed not to  compete  within a 25-mile  radius of any office of
Breezy and Breezy Bank; and

     WHEREAS,  in connection with the Merger, the Employment  Agreement shall be
amended and the Executive,  FFC and Breezy shall enter into a Settlement Letter,
which among other things, shall provide for the execution of this Agreement.

     NOW, THEREFORE,  in consideration of the mutual covenants contained herein,
and for other good and valuable consideration, including the payments to be made
to the  Executive  pursuant  to Section 6 of this  Agreement,  the  receipt  and
sufficiency  of which are  hereby  acknowledged,  the  parties  hereto  agree as
follows:

     1.  Non-competition.  For a period of two years after the Effective Time of
the Merger (the "Effective  Date"),  the Executive shall not,  without the prior
written consent of FFC, directly or indirectly, whether or not for compensation,
engage or invest in, own, manage, operate,  finance,  control, or participate in
the ownership, management,  operation, financing, or control of, be employed by,
associated  with, or in any manner  connected with, lend Executive's name or any
similar name to, lend  Executive's  credit to, or render  services or advice to,
any business,  including a savings bank,  savings and loan association,  savings
and loan holding  company,  bank,  bank  holding  company,  mortgage  company or
similar type  financial  institution,  or any direct or indirect  subsidiary  or
affiliate of such entity,  whose  products or activities  compete in whole or in
part  with  the  products  or  activities  of FFC or its  subsidiaries  within a

<page>

twenty-five  (25) mile radius of the  offices of FFC or any of its  subsidiaries
(the "Noncompete Area"),  provided,  however, that the Executive may purchase or
otherwise  acquire  up to (but not  more  than)  five  percent  of any  class of
securities  of  any  enterprise  (but  without  otherwise  participating  in the
activities of such  enterprise) if such securities are listed on any national or
regional  securities exchange or have been registered under Section 12(g) of the
Securities  Exchange Act of 1934.  The  Executive  agrees that this  covenant is
reasonable  with respect to its duration,  geographical  area, and scope. In the
event of a breach by the  Executive  of any covenant set forth in this Section 1
of this  Agreement,  the term of such covenant will be extended by the period of
the duration of such breach;

     2. Nonsolicitation.  The Executive will not, directly or indirectly, either
for himself or any other Person, (i) induce or attempt to induce any employee of
FFC to leave the employ of FFC, (ii) in any way interfere with the  relationship
between FFC and any employee of FFC,  (iii)  employ,  or otherwise  engage as an
employee,  independent  contractor,  or otherwise,  any employee of FFC, or (iv)
induce or  attempt to induce  any  customer,  supplier,  licensee,  or  business
relation of FFC to cease doing  business with FFC, or in any way interfere  with
the relationship between any customer,  supplier, licensee, or business relation
of FFC. The Executive will not,  directly or  indirectly,  either for himself or
any other  Person  (which  term shall  include  an  individual,  trust,  estate,
corporation,   limited  liability  company,   savings  bank,  savings  and  loan
association,  savings and loan holding  company,  bank,  bank  holding  company,
mortgage company or similar type financial  institution) solicit the business of
any Person known to the  Executive  to be a customer of FFC,  whether or not the
Executive  had personal  contact  with such Person,  with respect to products or
activities  which compete in whole or in part with the products or activities of
FFC.

     3.  Nondisparagement.  The Executive  will not, at any time during or after
the  two-year  period,  disparage  FFC  or  its  subsidiaries,  or  any  of  its
shareholders, directors, officers, employees, or agents.

     4.  Notification  of Employment.  Executive will, for a period of two years
after the Effective Date, within ten days after accepting any employment, advise
FFC of the identity of any employer of the Executive.  FFC may serve notice upon
each such  employer  that the  Executive is bound by this  Agreement and furnish
each such employer with a copy of this Agreement or relevant portions thereof.

     5.  Confidentiality.  The  Executive  acknowledges  and  agrees to treat as
confidential all information known or obtained by the Executive,  whether before
or after  the date  hereof,  concerning  Breezy's  or FFC's or their  respective
subsidiaries' records,  properties,  books, contracts,  commitments and affairs,
including  but not limited to,  information  regarding  accounts,  shareholders,
finances,  strategies,  marketing,  customers and potential  customers and other
information of a similar nature (such information,  "Confidential Information").
The Executive agrees that he will not, at any time, disclose to any unauthorized
Persons,  or use for his own  account or for the  benefit of any third party any
Confidential  Information,  whether  or  not  the  Confidential  Information  is
embodied  in writing or other  physical  form,  without  FFC's  express  written
consent,  unless  and to the extent  that such  Confidential  Information  is or
becomes  generally  known to and available for use by the public other than as a
result of Executive's  fault or the fault of any other Person bound by a duty of
confidentiality to FFC.

<page>

     6.  Compensation.  In  consideration  of the  covenants  contained  in this
Agreement,  FFC shall pay the Executive  the sum of five hundred fifty  thousand
Dollars  ($525,000),  which  shall  be paid in  accordance  with  the  following
schedule:  On the Effective Date, FFC shall pay the sum of two hundred sixty two
thousand and five hundred Dollars ($262,500), less applicable withholding taxes,
to the Executive.  Thereafter,  on the first  anniversary of the Effective Date,
FFC shall pay the  remaining  two hundred  sixty two  thousand  and five hundred
Dollars ($262,500),  less applicable  withholding taxes, to the Executive or his
estate.

     7. Remedies.  The parties hereto,  recognizing that irreparable injury will
result to FFC, its business and property in the event of the Executive's  breach
of this  Agreement,  hereby  consent,  in the  event of any such  breach  by the
Executive,  to an injunction in favor of FFC, in addition to any other  remedies
and damages  available,  to restrain the violation hereof by the Executive,  the
Executive's partners,  agents,  servants,  employers,  employees and all persons
acting for or with the Executive.  The Executive  represents and admits that the
Executive's  experience and  capabilities are such that the Executive can obtain
employment  in a business  engaged  in other  industries  and/or of a  different
nature than FFC, and that the  enforcement of a remedy by way of injunction will
not prevent the  Executive  from earning a  livelihood.  Nothing  herein will be
construed as prohibiting  FFC from pursuing any other remedies  available to FFC
for such breach or threatened breach, including the recovery of damages from the
Executive.

     8.  Waiver.  The rights and remedies of the parties to this  Agreement  are
cumulative and not  alternative.  Neither the failure nor any delay by any party
in exercising any right,  power,  or privilege under this Agreement will operate
as a waiver of such  right,  power,  or  privilege,  and no  single  or  partial
exercise of any such right,  power,  or  privilege  will  preclude  any other or
further exercise of such right, power, or privilege or the exercise of any other
right,  power, or privilege.  To the maximum extent permitted by applicable law,
(a) no claim or right  arising out of this  Agreement  can be  discharged by one
party,  in whole or in part, by a waiver or  renunciation  of the claim or right
unless in writing signed by the other party;  (b) no waiver that may be given by
a party  will be  applicable  except in the  specific  instance  for which it is
given; and (c) no notice to or demand on one party will be deemed to be a waiver
of any  obligation of such party or of the right of the party giving such notice
or demand to take further  action  without  notice or demand as provided in this
Agreement.

     9.  Successors  and  Assigns.  This  Agreement  shall be  binding  upon the
Executive  and FFC and will  inure  to the  benefit  of FFC and its  affiliates,
successors and assigns and the Executive and the Executive's assigns,  heirs and
legal representatives.

     10.  Governing  Law.  This  Agreement  shall be  construed  and enforced in
accordance with the laws of the State of New York without regard to conflicts of
laws principles.

     11.  Severability.  If any  provision  in this  Agreement  is  declared  or
determined by any court to be illegal, void, or unenforceable, the illegality or
unenforceability  of such  provision  shall have no effect  upon,  and shall not
impair,  the  enforceability  or  validity  of  any  other  provisions  in  this
Agreement.  If any of the covenants  set forth in this  Agreement are held to be
unreasonable,  arbitrary,  or against  public  policy,  such  covenants  will be
considered  divisible with respect to scope,  time, and geographic  area, and in

<Page>

such lesser scope,  time and  geographic  area,  will be effective,  binding and
enforceable against the Executive.

     12. Arbitration.  Any dispute or controversy arising under or in connection
with this  Agreement  shall be settled  exclusively  by  arbitration,  conducted
before  a  single  arbitrator  selected  mutually  by FFC and  Executive,  which
arbitration  shall be conducted  within the State of New York in accordance with
the rules of the American Arbitration Association then in effect.

     13.   Counterparts.   This  Agreement  may  be  executed  in  one  or  more
counterparts,  each of  which  shall be  deemed  an  original,  but all of which
together shall constitute one and the same agreement.

     14.  Termination.  This  Agreement  shall be  terminated  and shall have no
further  force or  effect  if,  and at such time as,  the  Merger  Agreement  is
terminated.

     IN WITNESS  WHEREOF,  the parties  hereto have executed and delivered  this
Agreement as of the date first written above.

EXECUTIVE                                     FLUSHING FINANCIAL CORPORATION

/s/ William M. Gilfillan                      By: /s/ John R. Buran
---------------------------                   ---------------------------------
                                              Name:  John R. Buran
                                              Title: President and
                                                     Chief Executive Officer

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