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EX-10.3 

RETIREMENT
PLAN

ATLANTIC
LIBERTY SAVINGS, F.A.  
Brooklyn, New York

January 1,
2004

DIRECTORS’
RETIREMENT PLAN

          This
Directors’ Retirement Plan (the Plan), effective as of the 1st
day of January 2004, formalizes the understanding by and between Atlantic
Liberty Savings, F.A. (the Bank), a federal stock savings bank, and its
non-employee directors, hereinafter referred to as Director(s).

          This
Plan is intended to comply with Internal Revenue Code (Code) Section 409A and
any regulatory or other guidance issued under such Section. At the effective
date of the Plan additional guidance was being promulgated by the Department of
Treasury. Any terms of this Plan that conflict with such future guidance shall
be null and void as of the effective date of the Plan. After such guidance is
issued, the intent is to amend the Plan to delete any conflicting provisions and
to add such other provisions as are required to fully comply with Section 409A
and any other legislative or regulatory requirement applicable to the Plan. This
Plan shall be effective as of January 1, 2005.

W
I T N E S S E T H :

          WHEREAS,
the Directors serve the Bank as members of the Board of Directors; and 

          WHEREAS,
the Bank desires to honor, reward and recognize the Directors who have provided
long and faithful service to the Bank and to ensure the continued service on the
Board by such Directors until retirement age; and

          WHEREAS,
the Directors wish to be assured that they will be entitled to a certain amount
of additional compensation for some definite period of time from and after
retirement from active service with the Bank or other termination of service and
wish to provide their beneficiaries with benefits from and after death; and

          WHEREAS,
the Bank and the Directors wish to provide the terms and conditions upon which
the Bank shall pay such additional compensation to the Directors after
retirement or other termination of service and/or death benefits to their
beneficiaries after death; and

          WHEREAS,
the Bank and the Directors intend this Plan to be considered an unfunded
arrangement, maintained primarily to provide supplemental retirement income for
such Directors; and

          WHEREAS,
the Bank has adopted this Directors Retirement Plan which controls all issues
relating to Retirement Benefits as described herein;

          NOW,
THEREFORE, in consideration of the premises and of the mutual promises
herein contained, the Bank and the Directors agree as follows:

SECTION
I

DEFINITIONS

           When
used herein, the following words and phrases shall have the meanings below
unless the context clearly indicates otherwise:

	1.1	 	
Accrued Benefit means that portion of the Retirement Benefit which is required
to be expensed and accrued under generally accepted accounting principles (GAAP)
by any appropriate method which the Bank’s Board of Directors may require
in the exercise of its sole discretion.

	1.2	 	
Act means the Employee Retirement Income Security Act of 1974, as amended from
time to time.

	1.3	 	
Administrator means the Bank.

	1.4	 	 Bank
means Atlantic Liberty Savings, F.A. and any successor thereto.

	1.5	 	
Beneficiary means the person or persons (and their heirs) that the Director has
designated as his Beneficiary in a Beneficiary Designation Form, in the form
attached hereto as Exhibit A) filed with the Administrator. If no Beneficiary is
so designated, then the

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	 	 	Directors Spouse, if living, will be deemed the
Beneficiary. If the Directors Spouse is not living, then the Children of the
Director will be deemed the Beneficiaries and will take on a per stirpes basis.
If there are no living Children, then the Estate of the Director will be deemed
the Beneficiary.

	1.6	 	
Benefit Eligibility Date shall be the date on which an eligible Director is
entitled to receive his Retirement Benefit. A Director’s Benefit
Eligibility Date shall occur on the 1st day of the month next following the
Directors Separation from Service.

	1.7	 	
Cause means personal dishonesty, incompetence willful misconduct, willful
malfeasance, breach of fiduciary duty involving personal profit, intentional
failure to perform stated duties, willful violation of any law, rule, regulation
(other than traffic violations or similar offenses), or final cease-and-desist
order, material breach of any provision of this Plan, or gross negligence in
matters of material importance to the Bank.

	1.8	 	
Change in Control shall mean a change in the ownership or effective control of
the Company, or in the ownership of a substantial portion of the assets of the
Company, as defined by the Secretary of the Treasury in regulations to be issued
under Section 409A of the Code.

	1.9	 	
Children means the Directors children, or the issue of any deceased Children,
then living at the time payments are due the Children under this Plan. The term
Children shall include both natural and adopted Children.

	1.10	 	
Disabled For purposes of this Plan, a Participant shall be considered disabled
if the Participant:

	(a) 	 	is
unable to engage in any substantial gainful activity by reason of any medically
determinable  physical  or mental  impairment  which can be  expected to result in death
or can be expected to last for a  continuous period of not less than 12 months, or

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	(b) 	 	is,
by reason of any  medically  determinable  physical  or mental  impairment  which can be
expected  to  result in death or can be  expected to last for a  continuous  period of
not less than 12 months,  receiving income  replacement  benefits for a period of not
less than 3 months under and accident  and health plan covering employees of the
Participant's employer.

	1.11	 	
Disability Benefit means the monthly benefit payable to the Director following a
determination, in accordance with Subsection 3.6, that the Director is Disabled.

	1.12	 	
Effective Date of this Plan shall be January 1, 2005.

	1.13	 	 Estate
means the estate of the Director.

	1.14	 	
Final Years Fees shall mean the rate of Regular Board Fees to which a Director
is entitled in his final Year of Service on the Board.

	1.15	 	
Interest Factor means monthly compounding or discounting, as applicable, at
seven percent (7%) per annum.

	1.16	 	
Payout Period means the time frame during which certain benefits payable
hereunder shall be distributed. Payments shall be made in equal monthly
installments commencing within thirty (30) days following the occurrence of the
event which triggers distribution and continuing for sixty (60) consecutive
months.

	1.17	 	
Plan Year shall mean the calendar year.

	1.18	 	 Regular
Board Fees means the annual fee to which a Director is entitled for service on
the Board and attendance at regularly scheduled meetings of the full Board, and
excludes additional fees to which a Director becomes entitled by serving on
additional Committees or attendance at special meetings of the Board.

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	1.19	 	
Retirement Benefit means an annual amount payable to an eligible Director
pursuant to the Plan. Directors shall first become eligible to participate in
the Plan and may receive a Retirement Benefit upon completion of five (5) years
of service with the Bank. For this purpose, credit shall not be granted for
service to the Bank prior to the Effective Date of the Plan. The minimum
Retirement Benefit to which a Director will become entitled upon the
satisfaction of the foregoing applicable conditions shall be equal to fifty
percent (50%) of the highest rate of Regular Board Fees to which such Director
was entitled immediately prior to his termination of service on the Board (Final
Years’ Fees) plus an additional 10% of Final Years’ Fees for each year
of credited service on the Board after five (5) years of service, up to a
maximum of one hundred percent (100%) of Final Years’ Fees.

	1.20	 	
Separation from Service shall mean the termination of the Directors service on
the board, as such term is defined in Section 409A of the Code and Treasury
Regulations.

	1.21	 	
Spouse means the individual to whom the Director is legally married at the time
of the Directors death.

	1.22	 	
Survivor’s Benefit means an annual amount payable to the Beneficiary in
monthly installments throughout the Payout Period, as designated in the
Directors Beneficiary Designation Form. The Survivors Benefit shall be equal to
the Retirement Benefit, calculated as if the Director had completed five (5)
years of service with the Bank after adoption of the Plan, or if the Director
has more than five (5) years of service with the Bank after adoption of the
Plan, such Director’s actual number of years of service with the Bank.

	1.23	 	
Treasury Regulations means the regulations issued by the Treasury Department
and/or other guidance issued by the Treasury Department or Internal Revenue
Service under Code Section 409A.

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	1.24	 	
Years of Service shall mean all calendar years of service beginning with the
year in which the Plan is adopted.

SECTION
II

ESTABLISHMENT
OF RABBI TRUST

          The
Bank intends to establish a rabbi trust into which the Bank intends to
contribute assets which shall be held therein, subject to the claims of the
Banks creditors in the event of the Bank’s Insolvency as defined in the
plan which establishes such rabbi trust, until the contributed assets are paid
to the Directors and their Beneficiaries in such manner and at such times as
specified in this Plan. It is the intention of the Bank to make contributions to
the rabbi trust to provide the Bank with a source of funds to assist it in
meeting the liabilities of this Plan. The rabbi trust and any assets held
therein shall conform to the terms of the rabbi trust agreement which has been
established in conjunction with this Plan. To the extent the language in this
Plan is modified by the language in the rabbi trust agreement, the rabbi trust
agreement shall supersede this Plan. Any contributions to the rabbi trust shall
be made during each Plan Year in accordance with the rabbi trust agreement. The
amount of such contribution(s) shall be equal to the Directors Accrued Benefit,
if any, less: (i) previous contributions made on behalf of the Director to the
rabbi trust, and (ii) earnings to date on all such previous contributions.

SECTION
III

BENEFITS

	3.1	 	
Retirement Benefit. If a Director has five (5) Years of Service after
adoption of the Plan, the Director shall be entitled to the Retirement Benefit.
Such Retirement Benefit shall commence on the 1st day of the month following the
Directors actual retirement or other Separation from Service on the Board, and
shall be payable in monthly installments throughout the Payout Period. In the
event a Director dies after commencement of the Retirement Benefit payments but
before completion of all such payments due and owing hereunder, the Bank shall
pay to the Directors Beneficiary a continuation of the monthly installments for
the remainder of the Payout Period.

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	3.2	 	
Death Prior to Benefit Age. If the Director dies while in the service of
the Bank, the Directors Beneficiary shall be entitled to the Survivors Benefit
whether or not the Director has five (5) Years of Service after adoption of the
Plan. The Survivor Benefit shall equal the Retirement Benefit that the Director
is entitled to receive at the time of death, provided however, that if the
Director does not have five (5) Years of Service at the time of death, the
Director shall be credited with additional Years of Service so that the Director
will receive the minimum Retirement Benefit under the Plan. The Survivors
Benefit shall commence within thirty (30) days of the Directors death and shall
be payable in monthly installments throughout the Payout Period.

	3.3	 	
Termination of Service Related to a Change in Control.

	(a)	 	If
a Change in Control occurs at the Bank, and thereafter the Director has a  Separation
from Service, the Director shall be entitled to his Retirement  Benefit. Such benefit
shall commence on the 1st day of the month following his  termination of service and
shall be payable in monthly installments throughout  the Payout Period. In the event of a
Change in Control, any Director with less  than five (5) Years of Service with the Bank
shall be deemed to have five (5)  years of credited service for purposes of determining
benefits hereunder. In the  event that the Director dies at any time after commencement
of the payments, but  prior to completion of all such payments due and owing hereunder,
the Bank, or  its successor, shall pay to the Directors Beneficiary a continuation of the
monthly installments for the remainder of the Payout Period.

	(b)	 	If,
after such termination, the Director dies prior to commencement of the  benefits
hereunder, the Directors Beneficiary shall be entitled to the Survivors  Benefit which
shall commence within thirty (30) days of the Director’s  death. The Survivor’s
Benefit shall be payable in monthly installments over  the Payout Period.

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	3.4	 	
Termination for Cause. If the Director is terminated for Cause, all
benefits under this Plan shall be forfeited and this Plan shall become null and
void as to the Director.

	3.5	 	
Disability Benefit.

	(a)	 	Notwithstanding
any other provision hereof, if a Director becomes Disabled, the  Director shall be
entitled to receive the Disability Benefit hereunder. In the  event the Director does not
have five (5) Years of Service after adoption of the  Plan, the Director shall be deemed
to have five (5) Years of Service for  purposes of determining his Disability Benefit. In
the event the Director dies  while receiving payments pursuant to this Subsection, but
prior to the  completion of all payments due and owing hereunder, the Bank shall pay to
the  Directors Beneficiary a continuation of the monthly installments for the  remainder
of the Payout Period.

	(b)	 	If
the Director dies after approval of the Disability Benefit by the Board of  Directors but
before the commencement of such payments, the Directors  Beneficiary shall be entitled to
the Directors Accrued Benefit annuitized (using  the Interest Factor) over the Payout
Period. Such benefit shall be payable to  the Beneficiary in monthly installments over
the Payout Period commencing within  thirty (30) days of the Director’s death.

	3.6	 	
Non-Competition During and After Service on the Board.

	(a)	 	In
consideration of the agreements of the Bank contained herein and of the  payments to be
made by the Bank pursuant hereto, the Director hereby agrees  that, so long as he remains
in the service of the Bank, he will not actively  engage, either directly or indirectly,
in any business or other activity which  is or may be deemed to be in any way competitive
with or adverse to the best  interests of the business of the Bank unless the Directors
participation therein  has been consented to, in writing, by the Board of Directors.

	(b)	 	The
Director expressly agrees that, as consideration for the covenants of the  Bank contained
herein and as a condition to the performance by the Bank of its

8

	 	 	obligations hereunder,
from and after any voluntary or involuntary termination  of service, other than a
termination of service pursuant to Subsection 3.4, and  continuing throughout the entire
Payout Period, as provided herein, he will not,  without the prior written consent of the
Bank, become associated with, in the  capacity of an employee, director, officer,
principal, agent, trustee or in any  other capacity whatsoever, any enterprise conducted
in the trading area of the  business of the Bank which enterprise is, or may be deemed to
be, competitive  with any business carried on by the Bank as of the date of the
termination of  the Directors service or his retirement.

	(c)	 	In
the event of a termination of the Directors service related to a Change in  Control
pursuant to Subsection 3.4, paragraph (b) of this Subsection 3.7 shall  cease to be a
condition to the performance by the Bank of its obligations under  this Plan.

	3.7	 	
Breach. In the event of any material breach by the Director of the
agreements and covenants contained herein, the Board of Directors of the Bank
shall direct that any unpaid balance of any payments to the Director under this
Plan be suspended, and shall thereupon notify the Director of such suspensions,
in writing. Thereupon, if the Board of Directors of the Bank shall determine
that said breach by the Director has continued for a period of one (1) month
following notification of such suspension, all rights of the Director and his
Beneficiaries under this Plan, including rights to further payments hereunder,
shall thereupon terminate.

SECTION
IV

BENEFICIARY
DESIGNATION

          The
Director shall make an initial designation of primary and secondary
Beneficiaries in a Beneficiary Designation Form (attached hereto as Exhibit A)
and shall have the right to change such designation, at any subsequent time, by
submitting a new Beneficiary Designation Form to

9 

the
Administrator. Any  subsequent Beneficiary designation shall become effective only when
receipt  thereof is acknowledged in writing by the Administrator.

SECTION
V

DIRECTOR’S
RIGHT TO ASSETS

          The
rights of the Director, any Beneficiary, or any other person claiming through
the Director under this Plan, shall be solely those of an unsecured general
creditor of the Bank. The Director, the Beneficiary, or any other person
claiming through the Director, shall only have the right to receive from the
Bank those payments so specified under this Plan. The Director agrees that he,
his Beneficiary, or any other person claiming through him shall have no rights
or interests whatsoever in any asset of the Bank, including any insurance
policies or contracts which the Bank may possess or obtain to informally fund
this Plan. Any asset used or acquired by the Bank in connection with the
liabilities it has assumed under this Plan, unless expressly provided herein,
shall not be deemed to be held under any trust for the benefit of the Director
or his Beneficiaries, nor shall any asset be considered security for the
performance of the obligations of the Bank. Any such asset shall be and remain,
a general, unpledged, and unrestricted asset of the Bank.

SECTION
VI

RESTRICTIONS
UPON FUNDING

          The
Bank shall have no obligation to set aside, earmark or entrust any fund or money
with which to pay its obligations under this Plan. The Director, his
Beneficiaries or any successor in interest to him shall be and remain simply a
general unsecured creditor of the Bank in the same manner as any other creditor
having a general claim for matured and unpaid compensation. The Bank reserves
the absolute right in its sole discretion to either purchase assets to meet its
obligations undertaken by this Plan or to refrain from the same and to determine
the extent, nature, and method of such asset purchases. Should the Bank decide
to purchase assets such as life insurance, mutual funds, disability policies or
annuities, the Bank reserves the absolute right, in its sole discretion, to
terminate such assets at any time, in whole or

10

in part. At no
time shall the  Director be deemed to have any lien, right, title or interest in or to
any  specific investment or to any assets of the Bank. If the Bank elects to invest  in a
life insurance, disability or annuity policy upon the life of the Director,  then the
Director shall assist the Bank by freely submitting to a physical  examination and by
supplying such additional information necessary to obtain  such insurance or annuities.

SECTION
VII

ALIENABILITY
AND ASSIGNMENT PROHIBITION

          Neither
the Director nor any Beneficiary under this Plan shall have any power or right
to transfer, assign, anticipate, hypothecate, mortgage, commute, modify or
otherwise encumber in advance any of the benefits payable hereunder, nor shall
any of said benefits be subject to seizure for the payment of any debts,
judgments, alimony or separate maintenance owed by the Director or his
Beneficiary, nor be transferable by operation of law in the event of bankruptcy,
insolvency or otherwise. In the event the Director or any Beneficiary attempts
assignment, communication, hypothecation, transfer or disposal of the benefits
hereunder, the Bank’s liabilities shall forthwith cease and terminate.

SECTION
VIII

ACT
PROVISIONS

	8.1	 	
Named Fiduciary and Administrator. The Bank, as Administrator, shall be
the Named Fiduciary of this Plan. As Administrator, the Bank shall be
responsible for the management, control and administration of the Plan as
established herein. The Administrator may delegate to others certain aspects of
the management and operational responsibilities of the Plan, including the
employment of advisors and the delegation of ministerial duties to qualified
individuals.

	8.2	 	
Claims Procedure and Arbitration. In the event that benefits under this
Plan are not paid to the Director (or to his Beneficiary in the case of the
Directors death) and such claimants feel they are entitled to receive such
benefits, then a written claim must be

11

	 	 	made to the Administrator within sixty
(60) days from the date payments are refused. The Bank and its Board of
Directors shall review the written claim and, if the claim is denied, in whole
or in part, they shall provide in writing, within ninety (90) days of receipt of
such claim, their specific reasons for such denial, reference to the provisions
of this Plan upon which the denial is based, and any additional material or
information necessary to perfect the claim. Such writing by the Bank and its
Board of Directors shall further indicate the additional steps which must be
undertaken by claimants if an additional review of the claim denial is desired.

	 	 	If
claimants desire a second review, they shall notify the Administrator in writing
within sixty (60) days of the first claim denial. Claimants may review this Plan
or any documents relating thereto and submit any issues and comments, in
writing, they may feel appropriate. In its sole discretion, the Administrator
shall then review the second claim and provide a written decision within sixty
(60) days of receipt of such claim. This decision shall state the specific
reasons for the decision and shall include reference to specific provisions of
this Plan upon which the decision is based.

	 	 	If
claimants continue to dispute the benefit denial based upon completed
performance of this Plan or the meaning and effect of the terms and conditions
thereof, then claimants may submit the dispute to mediation, administered by a
legally recognized arbitration /mediation association in accordance with its
rules. If mediation is not successful in resolving the dispute, it shall be
settled by binding arbitration administered by a legally recognized arbitration
association in accordance with its’ rules, and the judgment on the award
rendered by the arbitrator(s) may be entered in any court having jurisdiction
thereof.

SECTION
IX

MISCELLANEOUS

	9.1	 	
No Effect on Directors Rights. Nothing contained herein will confer upon
the Director the right to be retained in the service of the Bank nor limit the
right of the Bank to deal with the Director without regard to the existence of
the Plan.

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	9.2	 	
State Law. The Plan is established under, and will be construed according
to, the laws of the State of New York, to the extent such laws are not preempted
by the Act and valid regulations published thereunder.

	9.3	 	
Severability. In the event that any of the provisions of this Plan or
portion thereof, are held to be inoperative or invalid by any court of competent
jurisdiction, then: (1) insofar as is reasonable, effect will be given to the
intent manifested in the provisions held invalid or inoperative, and (2) the
validity and enforceability of the remaining provisions will not be affected
thereby.

	9.4	 	
Incapacity of Recipient. In the event the Director is declared
incompetent and a conservator or other person legally charged with the care of
his person or Estate is appointed, any benefits under the Plan to which such
Director is entitled shall be paid to such conservator or other person legally
charged with the care of his person or Estate.

	9.5	 	
Unclaimed Benefit. The Director shall keep the Bank informed of his
current address and the current address of his Beneficiaries. The Bank shall not
be obligated to search for the whereabouts of any person. If the location of the
Director is not made known to the Bank as of the date upon which any payment of
any benefits may first be made, the Bank shall delay payment of the Directors
benefit payment(s) until the location of the Director is made known to the Bank;
however, the Bank shall only be obligated to hold such benefit payment(s) for
the Director until the expiration of thirty-six (36) months. Upon expiration of
the thirty-six (36) month period, the Bank may discharge its obligation by
payment to the Directors Beneficiary. If the location of the Directors
Beneficiary is not made known to the Bank by the end of an additional two (2)
month period following expiration of the thirty-six (36) month period, the Bank
may discharge its obligation by payment to the Directors Estate. If there is no
Estate in existence at such time or if such fact cannot be determined by the
Bank, the Director and his Beneficiary(ies) shall thereupon forfeit any rights
to the balance, if any, of any benefits provided for such Director and/or
Beneficiary under this Plan.

13

	9.6	 	
Limitations on Liability. Notwithstanding any of the preceding provisions
of the Plan, no individual acting as an employee or agent of the Bank, or as a
member of the Board of Directors shall be personally liable to the Director or
any other person for any claim, loss, liability or expense incurred in
connection with the Plan.

	9.7	 	
Gender. Whenever in this Plan words are used in the masculine or neuter
gender, they shall be read and construed as in the masculine, feminine or neuter
gender, whenever they should so apply.

	9.8	 	
Effect on Other Corporate Benefit Plans. Nothing contained in this Plan
shall affect the right of the Director to participate in or be covered by any
other corporate benefit available to Directors of the Bank constituting a part
of the Bank’s existing or future compensation structure.

	9.9	 	
Inurement. This Plan shall be binding upon and shall inure to the benefit
of the Bank, its successors and assigns, and the Director, his successors,
heirs, executors, administrators, and Beneficiaries.

	9.10	 	
Headings. Headings and sub-headings in this Plan are inserted for
reference and convenience only and shall not be deemed a part of this Plan.

SECTION
X

AMENDMENT/REVOCATION

          This
Plan shall not be amended, modified or revoked at any time, in whole or part, as
to any Director, without the mutual written consent of the Director and the
Bank, and such mutual consent shall be required even if the Director is no
longer in the service of the Bank. In the event that any of the provisions of
this Plan or portion hereof, are held to be inoperative or invalid by any court
of competent jurisdiction, or in the event that any legislation adopted by any
governmental body having jurisdiction over the Bank would be retroactively
applied to

14

invalidate this
Plan or any provision hereof or cause the benefits  hereunder to be taxable, then: (1)
insofar as is reasonable, effect will be  given to the intent manifested in the
provisions held invalid or inoperative,  and (2) the validity and enforceability of the
remaining provisions will not be  affected thereby. In the event that the intent of any
provision shall need to be  construed in a manner to avoid taxability, such construction
shall be made by  the Bank, as administrator of the Plan, in a manner that would manifest
to the  maximum extent possible the original meaning of such provisions.

SECTION
XI

EXECUTION

	11.1	 	
This Plan sets forth the entire understanding of the parties hereto with respect
to the transactions contemplated hereby, and any previous agreements or
understandings between the parties hereto regarding the subject matter hereof
are merged into and superseded by this Plan.

	11.2	 	
This Plan shall be executed in triplicate, each copy of which, when so executed
and delivered, shall be an original, but all three copies shall together
constitute one and the same instrument.

          IN
WITNESS WHEREOF, the Bank has caused this Plan to be executed on the day and
date first above written.

		
	ATTEST:
 
 	 	ATLANTIC LIBERTY SAVINGS, F.A.
 
 	 
	/s/ Michelle A. Rizzotto
	 	/s/ Barry M. Donohue
	 
	Secretary	 	By: Barry M. Donohue	 
		 	Title: President and Chief Executive Officer	 
		 

15EXHIBIT 10.1

                                ESCROW AGREEMENT

     This Escrow Agreement (the "Agreement") is made by and between the
Manufacturers and Traders Trust Company, a New York banking corporation., with
its principal office located at One M & T Plaza, Buffalo New York 14203 (the
"Escrow Agent"), and M.E.R. Corporation, a Nevada corporation, with its
principal office located at 2400, 10303 Jasper Avenue, Edmonton, Alberta, Canada
T5J 3T8 (the "Issuer").

                            W I T N E S S E T H:

     WHEREAS, the Issuer has filed with the Securities and Exchange Commission
(the "Commission"), Washington, D.C., an SB-2 Registration Statement (the
"Registration Statement"), and related Prospectus, File No. __________, in
connection with an initial public offering of the Issuer's securities,
comprising 500,000 shares of the Issuer's common stock to be sold at a price of
$0.10 per share (the "Securities"), which shall not exceed 50 subscribers;

     WHEREAS, the Issuer proposes to offer the Securities to the public on a
"best efforts, all or none" basis as set forth in the Registration Statement;

     WHEREAS, the Issuer proposes to establish an escrow account (the "Escrow
Account"), to which subscription funds and securities which are received by the
Escrow Agent in connection with such public offering are to be credited, and the
Escrow Agent is willing to establish the Escrow Account on the terms and subject
to the conditions hereinafter set forth; and

     WHEREAS, the Escrow Agent will establish an Escrow Account into which the
subscription funds and securities which are received by the Escrow Agent and
credited to the Escrow Account, are to be deposited.

     NOW, THEREFORE, for and in consideration of the promises and mutual
covenants herein contained, and other valuable consideration, the parties hereto
hereby agree as follows:

     1.0  THE REGISTRATION STATEMENT.

     1.1 The Issuer has filed the Registration Statement with the Commission and
is included herein as Exhibit A to this Agreement, and is made a part hereof.

     2.0 ESTABLISHMENT OF THE ESCROW ACCOUNT.

     2.1 The Issuer shall establish a non-interest-bearing Escrow Account at the
Escrow Agent. The purpose of the Escrow Account is for (a) the deposit of all
subscription funds (checks or wire transfers) which are received by the Issuer
from prospective purchasers of the Securities and are delivered by the Issuer to
the Escrow Agent; (b) the holding of amounts of subscription funds which are
collected through the banking system, and (c) the disbursement of collected
funds, all as described herein.
<PAGE>
     2.2 On or before the date of the initial deposit in the Escrow Account
pursuant to this Agreement, the Issuer shall notify the Escrow Agent in writing
of the effective date (the "Effective Date") of the Registration Statement, and
the Escrow Agent shall not be required to accept any amounts for credit to the
Escrow Account or for deposit in the Escrow Account prior to its receipt of such
notification.

     2.3 The offering period (the "Offering Period"), which shall be deemed to
commence on the Effective Date, shall consist of the number of calendar days or
business days as set forth in the Registration Statement. The Offering Period
shall be extended by an extension period only if the Escrow Agent shall have
received written notice thereof at least five business days prior to the
expiration of the Offering Period. The extension period, which shall be deemed
to commence the next calendar day following the expiration of the Offering
Period, shall consist of the number of calendar days or business days set forth
in the Registration Statement. The last day of the Offering Period, or the last
day of the extension period, is referred to herein as the "Termination Date."
Except as provided in Section 4.3 hereof, after the Termination Date, the Issuer
shall not deposit, and the Escrow Agent shall not accept, any additional amounts
representing payments by prospective purchasers.

     3.0  DEPOSITS TO THE ESCROW ACCOUNT.

     3.1 The Issuer shall promptly deliver to the Escrow Agent all funds which
it receives from prospective purchasers of the Securities, which funds shall be
in the form of checks or wire transfers. Upon the Escrow Agent's receipt of such
funds, they shall be credited to the Escrow Account. All checks delivered to the
Escrow Agent shall be made payable to the " Manufacturers and Traders Trust
Company / M.E.R. Corporation Escrow Account." Any checks payable other than to
the Escrow Agent as required hereby shall be returned to the prospective
purchaser.

     3.2 Promptly after receiving subscription funds as described in Section
3.1, the Escrow Agent shall deposit the same into the Escrow Account. Amounts of
funds so deposited are hereinafter referred to as "Escrow Amounts." The Escrow
Agent shall cause to process all Escrow Amounts for collection through the
banking system. Simultaneously with each deposit to the Escrow Account, the
Issuer shall inform the Escrow Agent in writing of the name, address and social
security number of the prospective purchaser, the amount of Securities
subscribed for by such purchaser, and the aggregate dollar amount of such
subscription (collectively, the "Subscription Information").

     3.3 The Escrow Agent shall not be required to accept for credit to the
Escrow Account checks which are not accompanied by the appropriate Subscription
Information. Wire transfers and cash representing payments by prospective
purchasers shall not be deemed deposited in the Escrow Account until the Escrow
Agent has received in writing the Subscription Information required with respect
to such payments.

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<PAGE>
     3.4 The Escrow Agent shall not be required to accept in the Escrow Account
any amounts representing payments by prospective purchasers, whether by check,
or wire, except during the Escrow Agent's regular business hours.

     3.5 Only those Escrow Amounts, which have been deposited in the Escrow
Account and which have cleared the banking system and have been collected by the
Escrow Agent, are herein referred to as the "Fund."

     3.6 If the proposed offering is terminated before the Termination Date, the
Escrow Agent shall refund any portion of the Fund prior to disbursement of the
Fund in accordance with Article 4 hereof upon instructions in from the Issuer.

     4.0  DISBURSEMENT FROM THE ESCROW ACCOUNT.

     4.1 Subject to Section 4.3 below, if by the close of regular banking hours
on the Termination Date the Escrow Agent determines that the amount in the Fund
is less than the minimum amount of the offering, then the Escrow Agent shall
promptly refund to each prospective purchaser the amount of payment received
from such purchaser which is then held in the Fund or which thereafter clears
the banking system, without interest thereon or deduction therefrom, by drawing
checks on the Escrow Account for the amounts of such payments and mail them to
the purchasers. In such event, the Escrow Agent shall promptly notify the Issuer
of its distribution of the Fund.

     4.2 The terms of the offering must provide, and the Issuer must satisfy,
the following conditions:

        within five business days after the effective date of the post-effective
        amendment, the Issuer shall send by first class mail to each purchaser
        of securities held in escrow, a copy of the prospectus contained in the
        post-effective amendment and any amendment or supplement thereto;

        each purchaser shall have no fewer than 20 business days and no more
        than 45 business days from the effective date of the post-effective
        amendment to notify the Issuer in writing that the purchaser elects to
        remain an investor. If the Issuer has not received such written
        notification by the 45th business day following the effective date of
        the post-effective amendment, funds and interest or dividends, if any
        held in escrow shall be sent by first class mail or other equally prompt
        means to the purchaser within five business days; the acquisition
        meeting the criteria set forth above will be consummated if a sufficient
        number of purchasers confirm their investment with the Issuer; and if a
        consummated acquisition meeting the requirements above has not occurred
        by a date 6 months after the effective date of the Issuer's initial
        registration statement, funds held in escrow shall be returned by first
        class mail to the purchasers with five business days following that
        date. Issuer shall promptly notify Escrow Agent if any of the above
        conditions are not timely satisfied.

        Funds held in the escrow account may be released to the Issuer and
        securities may be delivered to the purchaser only at the same time as or
        after:

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<PAGE>
        the escrow agent has received a signed representation from the Issuer,
        together with other evidence acceptable to the escrow agent, that the
        requirements of paragraphs (e)(1) and (e)(2) of Rule 419 have been met;
        and

        the escrow agent has received a signed representation from the Issuer,
        together with other evidence acceptable to the escrow agent, that the
        requirements of paragraph (e)(2)(iii) of Rule 419 have been met.

     4.3 If the Escrow Agent has on hand at the close of business on the
Termination Date any uncollected amounts which when added to the Fund would
raise the amount in the Fund to the minimum offering amount, and result in the
Fund representing the sale of the minimum offering amount, the Collection
Period, consisting of the number of business days set forth in the Registration
Statement, shall be utilized to allow such uncollected funds to clear the
banking system.

     4.4 Upon disbursement of the Fund pursuant to the terms of this Article 4,
the Escrow Agent shall be relieved of all further obligations and released from
all liability under this Agreement. It is expressly agreed and understood that
in no event shall the aggregate amount of payments made by the Escrow Agent
exceed the amount of the Fund.

     5.0 RIGHTS, DUTIES AND RESPONSIBILITIES OF THE ESCROW AGENT;
         INDEMNIFICATION.

     5.1 The Escrow Agent shall notify the Issuer on a regular basis of the
escrow amounts which have been deposited in the Escrow Account and of the
amounts, constituting the Fund, which have cleared the banking system and have
been collected by the Escrow Agent.

     5.2 The Escrow Agent shall not be responsible for or be required to enforce
any of the terms or conditions of the Agreement with respect to the Issuer.

     5.3 The Escrow Agent shall not be required to accept from the Issuer any
subscription information pertaining to prospective purchasers unless such
Subscription Information is accompanied by checks or wire transfers meeting the
requirement of Section 3.1, nor shall the Escrow Agent be required to keep
records of any information with respect to payments deposited by the Issuer,
except as to the amount of such payments; however, the Escrow Agent shall notify
the Issuer within a reasonable time of any discrepancy between the amount set
forth in any subscription information and the amount delivered to the Escrow
Agent therewith. Such amount need not be accepted for deposit in the Escrow
Agent until such discrepancy has been resolved.

     5.4 The Escrow Agent shall be under no duty or responsibility to enforce
collection of any check delivered to it hereunder. The Escrow Agent, within a
reasonable time, shall return to the Issuer any check received which is
dishonored, together with the Subscription Information which accompanied such
check.

     5.5 The Escrow Agent shall be entitled to rely upon the accuracy, act in
reliance upon the contents, and assume the genuineness of any notice,
instruction, certificate, signature, instrument or other document which is given
to the Escrow Agent by the Issuer pursuant to this Agreement without the
necessity of the Escrow Agent verifying the truth or accuracy thereof. The

                                       4
<PAGE>
Escrow Agent shall not be obligated to make any inquiry as to the authority,
capacity, existence or identity of any person purporting to give any such notice
or instructions or to execute any such certificate, instrument or other
document.

     5.6 If the Escrow Agent is uncertain as to its duties or rights hereunder
or shall receive instructions with respect to the Escrow Account, the escrow
amounts of the Fund which, in its sole determination, are in conflict either
with other instructions received by it or with any provision of this Agreement,
it shall be entitled to hold the escrow amounts, the Fund or a portion thereof,
in the Escrow Account pending the resolution of such uncertainty to the Escrow
Agent's sole satisfaction, by final judgment of a court of competent
jurisdiction or otherwise; or the Escrow Agent, at its sole option, may deposit
with the Clerk of a court of competent jurisdiction in a proceeding to which all
parties in interest are joined. Upon the deposit by the Escrow Agent of the Fund
with the Clerk of any court, the Escrow Agent shall be relieved of all further
obligations and released from all liability hereunder.

     5.7 The Escrow Agent shall not be liable for any action taken or omitted
hereunder, or for the misconduct of any employee, agent or attorney appointed by
it, except in the case of willful misconduct or gross negligence. The Escrow
Agent shall be entitled to consult with counsel of its own choosing and shall
not be liable for any action taken, suffered or omitted by it in accordance with
the advice of such counsel.

     5.8 The Escrow Agent shall have no responsibility at any time to ascertain
whether or not any security interest exists in the escrow amounts, the Fund or
any part thereof or to file any financing statement under the Uniform Commercial
Code with respect to the Fund or any part thereof.

     5.9 The Corporation agrees to indemnify the Escrow Agent and its officers,
directors, employees, agents, and shareholders (jointly and severally, the
"Indemnitees") against, and hold them harmless of and from, any and all losses,
liabilities, costs, damages, and expenses, including, but not limited to,
reasonable fees and disbursements for counsel of its own choosing (collectively,
"Liabilities"), that the Indemnitees may suffer or incur and which arise out of
or relate to this Agreement or any transaction to which this Agreement relates,
unless such Liability is the result of the willful misconduct or gross
negligence of the Indemnitees.

     5.10 If the indemnification provided for in this Section 5 is applicable
but is held to be unavailable, the Corporation shall contribute such amounts as
are just and equitable to pay or to reimburse the Indemnitees for the aggregate
of any and all Liabilities actually incurred by the Indemnitees as a result of
or in connection with any amount paid in settlement of any action, claim, or
proceeding arising out of or relating in any way to any actions or omissions of
the Corporation.

     5.11 The provisions of this Section 5 shall survive any termination of this
Agreement, whether by disbursement of the Fund, resignation of the Escrow Agent,
or otherwise.

     6.0  AMENDMENT; RESIGNATION.

     6.1 This Agreement may be altered or amended only with the written consent
of the parties hereto. The Escrow Agent may resign for any reason upon five
business days' written notice to the Issuer. Should the Escrow Agent resign as
herein provided, it shall not be required to accept any deposit, make any

                                       5
<PAGE>
disbursement or otherwise dispose of the escrow amounts, but its only duty shall
be to hold the escrow accounts until they clear the banking system and the Fund
for a period of not more than five business days following the effective date of
such resignation, at which time (a) if a successor escrow agent shall have been
appointed and written notice thereof shall have been given to the resigning
escrow agent by the Issuer and such successor escrow agent, then the resigning
escrow agent shall pay over to the successor escrow agent the Fund, less any
portion thereof previously paid out in accordance with this Agreement; or (b) if
the resigning escrow agent shall not have received written notice signed by the
Issuer and a successor escrow agent, then the resigning escrow agent shall
promptly refund the amount in the Fund to each prospective purchaser, without
interest thereon or deduction therefrom, and the resigning Escrow Agent shall
promptly notify the Issuer of its liquidation and distribution of the Fund;
whereupon, in either case, the Escrow Agent shall be relieved of all further
obligations and released from all liability under this Agreement. Without
limiting the provisions of Section 8 hereof, the resigning Escrow Agent shall be
entitled to be reimbursed by the Issuer for any expenses incurred in connection
with its resignation, transfer of the Fund to a successor escrow agent or
distribution of the Fund pursuant to this Section 6.

     7.0  REPRESENTATIONS AND WARRANTIES.

     7.1 The Issuer represents and warrants to the Escrow Agent that no party
other than the parties hereto and the prospective purchasers have, or shall
have, any claim or security interest in the Fund or any part thereof.

     7.2 No financing statement under the Uniform Commercial Code is on file in
any jurisdiction claiming a security interest in or describing the Fund or any
part thereof.

     7.3 The Subscription Information submitted with each deposit shall, at the
time of submission and at the time of the disbursement of the Fund, be deemed a
representation and warranty that such deposit represents a bona fide payment by
the purchaser described therein for the amount of Securities set forth in such
Subscription Information.

     7.4 All of the information contained in the Registration Statement is, as
of the date hereof, and will be, at the time of any disbursement of the Fund,
true and correct.

     8.0  FEES AND EXPENSES.

     8.1 The Escrow Agent shall be entitled to an acceptance fee of $1,000 and
an annual administrative fee of $2,000, payable upon the execution of this
Agreement. In addition, the Issuer agrees to reimburse the Escrow Agent for any
reasonable fees and expenses incurred in connection with this Agreement,
including, but not limited to, disbursement fees not to exceed $50 per
subscriber in excess of 15 subscribers.

     9.0  GOVERNING LAW AND ASSIGNMENT.

     9.1 This Agreement shall be construed in accordance with and governed by
the laws of the STATE OF NEW YORK and shall be binding upon the parties hereto
and their respective successors and assigns; provided, however, that any
assignment or transfer by any party of its rights under this Agreement or with
respect to the Fund shall be void as against the Escrow Agent unless (a) written

                                       6
<PAGE>
notice thereof shall be given to the Escrow Agent; and (b) the Escrow Agent
shall have consented in writing to such assignment or transfer.

     10.0  NOTICES.

     10.1 All notices required to be given in connection with this Agreement
shall be sent by registered or certified mail, return receipt requested, or by
hand delivery with receipt acknowledged, or by Express Mail service offered by
the United States Post Office to the addresses set forth in the beginning of
this Agreement or such other address as the parties hereto may designate.

     11.0  SEVERABILITY.

     11.1 If any provision of this Agreement or the application thereof to any
person or circumstance shall be determined to be invalid or unenforceable, the
remaining provisions of this Agreement or the application of such provision to
persons of circumstances other than those to which it is held invalid or
unenforceable shall not be affected thereby and shall be valid and enforceable
to the fullest extent permitted by law.

     12.0  EXECUTION IN SEVERAL COUNTERPARTS; ENTIRE AGREEMENT.

     12.1 This Agreement may be executed in several counterparts or by separate
instruments, all of such counterparts and instruments shall constitute one
agreement, binding on all of the parties hereto.

     12.2 This Agreement constitutes the entire agreement between the parties
hereto with respect to the subject matter hereof and supersedes all prior
agreements and understandings, written or oral, of the parties in connection
therewith.

     IN WITNESS WHEREOF, the undersigned parties have executed this Agreement
upon proper legal authority as of the 30th day of August, 2004.

                              MANUFACTURERS AND TRADERS TRUST COMPANY, a
                              New York banking corporation

                              By: /s/ Leslie Boynton
                                 Leslie Boynton, its VicePresident

                              M.E.R. CORPORATION, a Nevada corporation

                              By: /s/ Ronald Mercier
                                 Ronald Mercier, its President

                                       7

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