Document:

Exhibit 10.4 Employment Agreement McGurk

Exhibit
10.4

 

 

ROCKVILLE
BANK

 

Employment
Agreement for William J. McGurk

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ROCKVILLE
BANK

 

Employment
Agreement for William J. McGurk 

 

	
      1.
	 Employment	
      1

	
      2.
	
      Term
	
      1

	
      3.
	Offices
      and Duties	
      2

	
       
	
      (a) 
	
      Generally
	
      2

	
       
	
      (b) 
	
      Place
      of Employment
	
      2

	
      4.
	
      Salary
      and Annual Incentive Compensation
	
      2

	
       
	
      (a) 
	
      Base
      Salary
	
      2

	
       
	
      (b) 
	
      Annual
      Incentive Compensation
	
      2

	
      5. 
	 Long-Term Compensation,
      Including Stock Options, Benefits, Deferred Compensation, and Expense
      Reimbursement 	3 
	
       
	
      (a) 
	
      Executive
      Compensation Plans
	
      3

	
       
	
      (b) 
	
      Employee
      and Executive Benefit Plans
	
      3

	
       
	
      (c) 
	
      Acceleration
      of Awards Upon a Change in Control
	
      3

	
       
	
      (d) 
	
      Deferral
      of Compensation
	
      3

	
       
	
      (e) 
	
      Company
      Registration Obligations
	
      4

	
       
	
      (f) 
	
      Reimbursement
      of Expenses
	
      4

	
       
	
      (g) 
	
      Automobile
	
      4

	
       
	
      (h) 
	
      Club
      Dues
	
      4

	
       
	
      (i) 
	
      Tax
      Service Fees
	
      4

	
      6.
	Termination
      Due to Retirement, Death, or Disability	
      4

	
       
	
      (a) 
	
      Retirement
	
      4

	
       
	
      (b) 
	
      Death
	
      6

	
       
	
      (c) 
	
      Disability
	
      7

	
       
	
      (d) 
	
      Other
      Terms of Payment Following Retirement, Death, or
Disability
	
      9

	
      7.
	Termination
      of Employment For Reasons Other Than Retirement, Death or
    Disability	
      9

	
       
	
      (a) 
	
      Termination
      by the Bank for Cause
	
      9

	
       
	
      (b) 
	
      Termination
      by Executive Other Than For Good Reason
	
      9

	
       
	
      (c) 
	
      Termination
      by the Bank Without Cause Prior to or More than Two Years After a Change
      in Control
	
      10

	 	
      (d)
	
      Termination
      by Executive for Good Reason Prior to or More than Two Years After a
      Change in Control 
	
      12 

 

 

	
       
	
      (e) 
	
      Termination
      by the Bank Without Cause Within Two Years After a Change in
      Control
	
      14

	
       
	
      (f) 
	
      Termination
      by Executive for Good Reason Within Two Years After a Change in
      Control
	
      17

	
       
	
      (g) 
	
      Other
      Terms Relating to Certain Terminations of Employment
	
      19

	
      8.
	Definitions
      Relating to Termination Events	
      19

	
       
	
      (a) 
	
      "Cause"
	
      19

	
       
	
      (b) 
	
      "Change
      in Control "
	
      20

	
       
	
      (c) 
	
      "Compensation
      Accrued at Termination"
	
      21

	
       
	
      (d) 
	
      "Disability"
	
      21

	
       
	
      (e) 
	
      "Good
      Reason"
	
      21

	
       
	
      (f) 
	
      "Potential
      Change in Control"
	
      22

	
      9.
	Rabbi
      Trust Obligation Upon Potential Change in Control; Excise Tax-Related
      Provisions	
      23

	
       
	
      (a) 
	
      Rabbi
      Trust Funded Upon Potential Change in Control
	
      23

	
       
	
      (b) 
	
      Gross-up
      If Excise Tax Would Apply
	
      23

	
      10.
	Non-Competition
      and Non-Disclosure; Executive Cooperation; Non-Disparagement; Certain
      Forfeitures	
      25

	
       
	
      (a) 
	
      Non-Competition
	
      25

	
       
	
      (b) 
	
      Non-Disclosure;
      Ownership of Work
	
      25

	
       
	
      (c) 
	
      Cooperation
      With Regard to Litigation
	
      25

	
       
	
      (d) 
	
      Non-Disparagement
	
      26

	
       
	
      (e) 
	
      Release
      of Employment Claims
	
      26

	
       
	
      (f) 
	
      Forfeiture
      of Outstanding Options
	
      26

	
       
	
      (g) 
	
      Forfeiture
      of Certain Bonuses and Profits
	
      26

	
       
	
      (h) 
	
      Forfeiture
      Due to Regulatory Restrictions
	
      26

	
       
	
      (i) 
	
      Survival
	
      27

	
      11.
	Governing
      Law; Disputes; Arbitration	
      27

	
       
	
      (a) 
	
      Governing
      Law
	
      27

	
       
	
      (b) 
	
      Reimbursement
      of Expenses in Enforcing Rights
	
      27

	
       
	
      (c) 
	
      Dispute
      Resolution
	
      27

	
       
	
      (d) 
	
      Interest
      on Unpaid Amounts
	
      28

	
      12.
	Miscellaneous	
      28

	
       
	
      (a) 
	
      Integration
	
      28

	
       
	
      (b) 
	
      Successors;
      Transferability
	
      28

	
       
	
      (c) 
	
      Beneficiaries
	
      29

	
       
	
      (d) 
	
      Notices
	
      29

	
       
	
      (e) 
	
      Reformation
	
      29

	
       
	
      (f) 
	
      Headings
	
      29

 

-ii-

 

	
       
	
      (g) 
	
      No
      General Waivers
	
      29

	
       
	
      (h) 
	
      No
      Obligation To Mitigate
	
      29

	
       
	
      (i) 
	
      Offsets;
      Withholding
	
      30

	
       
	
      (j) 
	
      Successors
      and Assigns
	
      30

	
       
	
      (k) 
	
      Counterparts
	
      30

	
      13.
	Indemnification	
      30

	 	 	 	 
	
      Attachment
      A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-iii-

ROCKVILLE
BANK

 

Employment
Agreement for William J. McGurk 

 

 

THIS
EMPLOYMENT AGREEMENT (the “Agreement”) by and among ROCKVILLE FINANCIAL, INC., a
Connecticut corporation (the “Company”), ROCKVILLE BANK, a Connecticut savings
bank and a wholly-owned subsidiary of the Company (the "Bank"), and William J.
McGurk ("Executive") shall become effective as of the consummation of the
reorganization and the minority stock issuance as contemplated in the Plan of
Reorganization and Minority Stock Issuance adopted by the Boards of Directors of
the Bank and Charter Oak Community Bank Corp. (the "Effective Date").

 

W
I T N E S S E T H

 

WHEREAS,
the Bank has become a wholly-owned subsidiary of the Company; and

 

WHEREAS,
Executive is currently employed as President and Chief Executive Officer of the
Bank; and

 

WHEREAS,
the Company and the Bank desire to ensure that the Company and the Bank are
assured of the continued availability of Executive’s services as provided in
this Agreement; and

 

WHEREAS,
Executive is willing to serve the Company and the Bank on the terms and
conditions hereinafter set forth..

 

NOW,
THEREFORE, in consideration of the foregoing, the mutual covenants contained
herein, and other good and valuable consideration the receipt and adequacy of
which the Company, the Bank and Executive each hereby acknowledge, the Company,
the Bank and Executive hereby agree as follows:

 

1.  Employment.

 

The Bank
hereby agrees to employ Executive as its President and Chief Executive Officer
(with the principal executive duties set forth below in Section 3), and
Executive hereby agrees to accept such employment and serve in such capacities,
during the Term as defined in Section 2 (subject to Section 7(c) and 7(e)) and
upon the terms and conditions set forth in this Agreement. 

 

2.  Term.

 

The term
of employment of Executive under this Agreement (the "Term") shall be the period
commencing on the Effective Date and ending on December 31, 2009 and any period
of extension thereof in accordance with this Section 2, except that the Term
will end at a date, prior to the end of such period or extension thereof,
specified in Section 6 or 7 in the event of termination of Executive's
employment. The Term, if not previously ended, shall be extended by one
additional year (added to the end of the Term) on December 31, 2009 (extending
the Term to December 31, 2010) upon written agreement of the parties. If either
party shall desire to so extend the Term, such party shall serve written notice
in accordance with Section 12(d) upon the other party on or before June 30, 2009
requesting an extension of the Term to December 31, 2010. The parties agree to
negotiate in good faith any such requested extension but neither party shall be
obligated to agree to so extend the Term. Any such agreement to extend the Term
to December 31, 2010 shall be memorialized in writing on or before December 31,
2009; otherwise, Executive’s employment shall terminate on December 31, 2009 and
the Term shall end at that date, subject to earlier termination of employment
and earlier termination of the Term in accordance with Section 6 or 7. The
foregoing 

notwithstanding,
in the event there occurs a Potential Change in Control at any time on or after
July 1, 2009, the Term shall not end until the 180th day following such
Potential Change in Control.

 

3.  Offices
and Duties.

 

The
provisions of this Section 3 will apply during the Term, except as otherwise
provided in Section 7(c) or 7(e):

 

    (a)  Generally.
Executive shall serve as the President and Chief Executive Officer of the Bank.
Executive shall have and perform such duties, responsibilities, and authorities
as are prescribed by or under the Bylaws of the Bank and as are customarily
associated with such position or, irrespective of the office, title or other
designation, if any, a position with responsibilities and powers substantially
identical to such position with the Bank. Executive shall devote his full
business time and attention, and his best efforts, abilities, experience, and
talent, to the position of President and Chief Executive Officer and other
assignments hereunder, and for the business of the Bank, without commitment to
other business endeavors, except that Executive (i) may make personal
investments which are not in conflict with his duties to the Bank and manage
personal and family financial and legal affairs, (ii) may undertake public
speaking engagements, and (iii) may serve as a director of (or similar position
with) any other business or an educational, charitable, community, civic,
religious, or similar type of organization, so long as such activities (i.e.,
those listed in clauses (i) through (iii)) do not preclude or render unlawful
Executive's employment or service to the Bank or otherwise materially inhibit
the performance of Executive's duties under this Agreement or materially impair
the business of the Bank or its affiliates.

 

    (b)  Place
of Employment.
Executive's principal place of employment shall be at the administrative offices
of the Bank. 

 

4.  Salary
and Annual Incentive Compensation.

 

As
partial compensation for the services to be rendered hereunder by Executive, the
Bank agrees to pay to Executive during the Term the compensation set forth in
this Section 4.

 

    (a)  Base
Salary. The
Bank will pay to Executive during the Term a base salary, the annual rate of
which shall be $360,000, payable in cash in substantially equal semi-monthly
installments commencing at the beginning of the Term, and otherwise in
accordance with the Bank's usual payroll practices with respect to senior
executives (except to the extent deferred under Section 5(d)). Executive's
annual base salary shall be reviewed by the Human Resources Committee (the
"Committee") of the Board of Directors of the Bank (the "Board") at least once
in each calendar year, and may be increased above, but may not be reduced below,
the then-current rate of such base salary. For purposes of this Agreement, "Base
Salary" means Executive's then-current base salary.

 

    (b)  Annual
Incentive Compensation. The
Bank will pay to Executive during the Term annual incentive compensation which
shall offer to Executive an opportunity to earn additional compensation based
upon performance in amounts determined by the Committee in accordance with the
applicable plan and consistent with past practices of the Bank, with the nature
of the performance and the levels of performance triggering payments of such
annual target incentive compensation for each year to be established and
communicated to Executive during the first quarter of such year by the
Committee. In addition, the Committee (or the Board) may determine, in its
discretion, to increase Executive's annual target incentive opportunity or
provide an additional annual incentive opportunity, in excess of the annual
target incentive opportunity, payable for performance in excess of or in
addition to the performance required for payment of the annual target incentive
amount. Any annual incentive compensation payable to Executive shall be paid in
accordance with the Bank's usual practices with respect to payment of incentive
compensation to senior executives (except to the extent deferred under Section
5(d)). 

2

5.  Long-Term
Compensation, Including Stock Options, Benefits, Deferred Compensation, and
Expense Reimbursement 

 

    (a)  Executive
Compensation Plans.
Executive shall be entitled during the Term to participate, without
discrimination or duplication, in executive compensation plans and programs
intended for general participation by senior executives of the Bank, as
presently in effect or as they may be modified or added to by the Bank from time
to time, subject to the eligibility and other requirements of such plans and
programs, including without limitation any stock option plans, plans under which
restricted stock/restricted stock units, performance-based restricted
stock/restricted stock units or performance-accelerated restricted
stock/restricted stock units (collectively, “stock plans”) may be awarded, other
annual and long-term cash and/or equity incentive plans, and deferred
compensation plans. 

 

    (b)  Employee
and Executive Benefit Plans.
Executive shall be entitled during the Term to participate, without
discrimination or duplication, in employee and executive benefit plans and
programs of the Bank, as presently in effect or as they may be modified or added
to by the Bank from time to time, subject to the eligibility and other
requirements of such plans and programs, including without limitation plans
providing pensions, supplemental pensions, supplemental and other retirement
benefits, medical insurance, life insurance, disability insurance, and
accidental death or dismemberment insurance, as well as savings, profit-sharing,
and stock ownership plans. 

 

In
furtherance of and not in limitation of the foregoing, during the
Term:

 

	
      (i) 
	
      Executive
      will participate as President and Chief Executive Officer in all executive
      and employee vacation and time-off programs;

       

	
      (ii) 
	
      The
      Bank will provide Executive with coverage as President and Chief Executive
      Officer with respect to long-term disability insurance;

       

	
      (iii) 
	
      Executive
      will be covered by Bank-paid group term life insurance and a Bank-paid
      individual term life insurance policy in the face amount of $1,400,000 for
      so long as Executive shall remain actively employed by the
      Bank;

       

	
      (iv) 
	
      Upon
      Executive’s termination of employment with the Bank for any reason,
      Executive will be entitled to participate in such retiree medical, dental
      and life insurance plans as the Bank may, from time to time, offer in
      accordance with the terms of such plans; and

       

	
      (v) 
	
      Executive
      will be entitled to benefits under the Supplemental Savings and Retirement
      Plan and the Supplemental Executive Retirement Plan (collectively, the
      “SERPS”) in accordance with the terms thereof, with the effective date of
      Executive's participation therein to be not later than the Effective
      Date. 

       

    (c)  Acceleration
of Awards Upon a Change in Control. In the
event of a Change in Control (as defined in Section 8(b)), all outstanding stock
options, restricted stock, and other equity-based awards then held by Executive
shall become vested and exercisable.

 

    (d)  Deferral
of Compensation. If the
Bank has in effect or adopts any deferral program or arrangement permitting
executives to elect to defer any compensation, Executive will be eligible to
participate in such program. Any plan or program of the Bank which provides
benefits based on the level of salary, annual incentive, or other compensation
of Executive shall, in determining Executive's benefits, take into account the
amount of salary, annual incentive, or other compensation prior to any reduction
for voluntary contributions made 

3

by
Executive under any deferral or similar contributory plan or program of the Bank
(excluding compensation that would not be taken into account even if not
deferred), but shall not treat any payout or settlement under such a deferral or
similar contributory plan or program to be additional salary, annual incentive,
or other compensation for purposes of determining such benefits, unless
otherwise expressly provided under such plan or program.

 

    (e)  Company
Registration Obligations. The
Company will use its best efforts to file with the Securities and Exchange
Commission and thereafter maintain the effectiveness of one or more registration
statements registering under the Securities Act of 1933, as amended (the "1933
Act"), the offer and sale of shares by the Company to Executive pursuant to
stock options or other equity-based awards granted to Executive under Company
plans or otherwise or, if shares are acquired by Executive in a transaction not
involving an offer or sale to Executive but resulting in the acquired shares
being "restricted securities" for purposes of the 1933 Act, registering the
reoffer and resale of such shares by Executive.

 

    (f)  Reimbursement
of Expenses. The
Bank will promptly reimburse Executive for all reasonable business expenses and
disbursements incurred by Executive in the performance of Executive's duties
during the Term in accordance with the Bank's reimbursement policies as in
effect from time to time.

 

    (g)  Automobile. The
Bank shall provide Executive with, and Executive shall have the primary use of,
an automobile owned or leased by the Bank and the Bank shall pay (or reimburse
Executive) for all expenses of insurance, registration, operation and
maintenance of the automobile. Executive shall comply with reasonable reporting
and expense limitations on the use of such automobile, as the Committee may
establish from time to time, and the Bank shall annually include on Executive’s
Form W-2 any amount attributable to Executive’s personal use of such automobile.

 

    (h)  Club
Dues. The
Bank shall reimburse or pay for the costs of either a corporate or individual
membership at a country club determined by the Bank in its discretion for use by
Executive, including all membership bonds or surety, initiation or membership
fees, annual dues, capital assessments and all business-related expense incurred
at such club (“Club Expenses”). Executive shall be reimbursed on an after-tax
basis for the cost of Club Expenses expended by Executive. 

 

    (i)  Tax
Service Fees. The
Bank shall provide for Executive to receive, at the Bank’s expense, the services
of a tax professional and a personal financial planning professional (which may
be the same person or entity for both services) (the “Tax Service Professional”)
selected by the Bank and reasonably satisfactory to Executive. The services to
be provided shall include: (A) the preparation of all required federal, state
and local personal income tax returns, (B) advice with respect to federal, state
and local income tax treatment of cash and other forms of compensation paid to
Executive by the Bank and (C) investment and retirement counseling and estate
planning. Executive shall be reimbursed on an after-tax basis for the cost of
such Tax Service Professional fees. 

 

6.  Termination
Due to Retirement, Death, or Disability.

 

    (a)  Retirement.
Executive may elect to terminate employment hereunder by retirement at or after
age 60 ("Retirement"). Executive’s termination of employment upon expiration of
the Term on December 31, 2009 (or December 31, 2010 in the event of an extension
of the Term as provided in Section 2) shall be deemed a Retirement hereunder. At
the time Executive's employment terminates due to Retirement, the Term will
terminate, all obligations of the Bank and Executive under Sections 1 through 5
of this Agreement will immediately cease except for obligations which expressly
continue after termination of employment due to Retirement, and the Bank will
pay Executive, and Executive will be entitled to receive, the following:

 

	
      (i) 
	
      Executive's
      Compensation Accrued at Termination (as defined in Section
      8(c));

       

 

4

 

	
      (ii) 
	
      In
      lieu of any annual incentive compensation under Section 4(b) for the year
      in which Executive's employment terminated, an amount equal to the portion
      of annual incentive compensation that would have become payable in cash to
      Executive (i.e., excluding the portion payable in stock or in other
      non-cash awards) for that year if his employment had not terminated, based
      on performance actually achieved in that year (determined by the Committee
      following completion of the performance year), multiplied by a fraction
      the numerator of which is the number of days Executive was employed in the
      year of termination and the denominator of which is the total number of
      days in the year of termination;

       

	
      (iii) 
	
      The
      vesting and exercisability of stock options held by Executive at
      termination and all other terms of such options shall be governed by the
      plans and programs and the agreements and other documents pursuant to
      which such options were granted (subject to Section 10(f)
      hereof);

       

	
      (iv) 
	
      All
      restricted stock and deferred stock awards, including outstanding stock
      plan awards, all other long-term incentive awards, and all deferral
      arrangements under Section 5(d), shall be governed by the plans and
      programs under which the awards were granted or governing the deferral,
      and all rights under the SERPS and any other benefit plan shall be
      governed by such plans; and

       

	
      (v) 
	
      If
      Executive shall not be eligible upon Retirement for retiree coverage under
      the Bank’s health plan (the “Health Plan”) and Executive elects in
      accordance with the applicable provisions of the Consolidated Omnibus
      Budget Reconciliation Act of 1986, as amended (“COBRA”) continued coverage
      under the Health Plan in accordance with the applicable provisions of
      COBRA, the Bank shall pay to Executive on a monthly basis during such
      COBRA continuation period an amount equal on an after-tax basis to the
      total cost of such coverage. Prior to the expiration of the maximum COBRA
      continuation period available to Executive, provided that Executive
      theretofore shall have complied with the conditions set forth in Section
      10, the Bank shall make a good faith effort to obtain insured coverage for
      Executive (and his spouse and eligible dependents, if any, for whom
      coverage had been provided during the COBRA continuation period) that is
      substantially comparable to such COBRA continuation coverage, which
      insured coverage shall begin on the date of expiration of Executive’s
      COBRA continuation period and continue until the earliest of: (1)
      Executive’s eligibility for medical coverage under the Bank’s Health Plan,
      as a retiree or active employee, (2) Executive’s eligibility for medical
      coverage under a plan maintained by a subsequent employer or other entity
      to which Executive provides services, (3) Executive’s eligibility for
      Medicare, or (4) Executive’s attainment of Social Security retirement age,
      within the meaning of Section 216(l) of the Social Security Act, as the
      same may be amended (“Social Security Retirement Age”). In the event that
      the Bank determines, in its sole discretion, that it is unable to obtain
      such insured coverage for Executive (and his spouse and eligible
      dependents, if any, for whom coverage had been provided during the COBRA
      continuation period) or in the event that Executive determines, in his
      sole discretion, that any such insured coverage offered by the Bank is not
      substantially comparable to such COBRA continuation coverage, the Bank
      shall pay to Executive, provided that Executive shall not have become
      eligible for medical coverage under (1) the Bank’s Health Plan, as a
      retiree or active 

 

5

	
       
	
      employee,
      (2) a plan maintained by a subsequent employer or other entity to which
      Executive provides services, or (3) Medicare and, provided further, that
      Executive theretofore shall have complied with the conditions set forth in
      Section 10, a lump sum amount equal on an after-tax basis to the present
      value of the total cost of retiree medical coverage under the Health Plan
      that would have been incurred by both Executive and the Bank on behalf of
      Executive (and his spouse and eligible dependents, if any, for whom
      coverage had been provided during the COBRA continuation period) if
      Executive (and such spouse and dependents, if any) had been eligible for
      such retiree medical coverage from the end of Executive’s COBRA
      continuation period until Executive’s attainment of Social Security
      retirement age, calculated on the assumption that the cost of such
      coverage would remain unchanged from that in effect for the year in which
      such lump sum is paid. Such lump sum amount shall be calculated by an
      actuary selected by the Bank and paid in cash as soon as administratively
      practicable following the expiration of Executive’s COBRA continuation
      period and shall not be subject to reduction or forfeiture by reason of
      any coverage for which Executive may thereafter become eligible by reason
      of subsequent employment or otherwise. For purposes of this Section,
      present value shall be calculated on the basis of the discount rate set
      forth in the Bank’s qualified retirement plan for the determination of
      lump sum payments.

 

    (b)  Death. In the
event of Executive's death which results in the termination of Executive's
employment, the Term will terminate, all obligations of the Bank and Executive
under Sections 1 through 5 of this Agreement will immediately cease except for
obligations which expressly continue after death, and the Bank will pay
Executive's beneficiary or estate, and Executive's beneficiary or estate will be
entitled to receive, the following: 

 

	
      (i) 
	
      Executive's
      Compensation Accrued at Termination;

       

	
      (ii) 
	
      In
      lieu of any annual incentive compensation under Section 4(b) for the year
      in which Executive's death occurred, an amount equal to the portion of
      annual incentive compensation that would have become payable in cash to
      Executive (i.e., excluding the portion payable in stock or in other
      non-cash awards) for that year if his employment had not terminated, based
      on performance actually achieved in that year (determined by the Committee
      following completion of the performance year), multiplied by a fraction
      the numerator of which is the number of days Executive was employed in the
      year of his death and the denominator of which is the total number of days
      in the year of death;

       

	
      (iii) 
	
      The
      vesting and exercisability of stock options held by Executive at death and
      all other terms of such options shall be governed by the plans and
      programs and the agreements and other documents pursuant to which such
      options were granted;

       

	
      (iv) 
	
      All
      restricted stock and deferred stock awards, including outstanding stock
      plan awards, all other long-term incentive awards, and all deferral
      arrangements under Section 5(d), shall be governed by the plans and
      programs under which the awards were granted or governing the deferral,
      and all rights under the SERPS and any other benefit plan shall be
      governed by such plans;

       

 

6

 

	
      (v) 
	
      If
      Executive’s surviving spouse (and eligible dependents, if any) elects
      continued coverage under the Bank’s Health Plan in accordance with the
      applicable provisions of COBRA, the Bank shall pay to Executive’s
      surviving spouse on a monthly basis during such COBRA continuation period
      an amount equal on an after-tax basis to the total cost of such coverage.
      No further benefits shall be paid under this Section after the expiration
      of the maximum COBRA continuation period available to Executive’s
      surviving spouse and eligible dependents, if any.

       

    (c)  Disability. The
Bank may terminate the employment of Executive hereunder due to the Disability
(as defined in Section 8(d)) of Executive. Upon termination of employment, the
Term will terminate, all obligations of the Bank and Executive under Sections 1
through 5 of this Agreement will immediately cease except for obligations which
expressly continue after termination of employment due to Disability, and the
Bank will pay Executive, and Executive will be entitled to receive, the
following: 

 

	
      (i) 
	
      Executive's
      Compensation Accrued at Termination;

       

	
      (ii) 
	
      In
      lieu of any annual incentive compensation under Section 4(b) for the year
      in which Executive's employment terminated, an amount equal to the portion
      of annual incentive compensation that would have become payable in cash to
      Executive (i.e., excluding the portion payable in stock or in other
      non-cash awards) for that year if his employment had not terminated, based
      on performance actually achieved in that year (determined by the Committee
      following completion of the performance year), multiplied by a fraction
      the numerator of which is the number of days Executive was employed in the
      year of termination and the denominator of which is the total number of
      days in the year of termination;

       

	
      (iii) 
	
      Stock
      options held by Executive at termination shall be governed by the plans
      and programs and the agreements and other documents pursuant to which such
      options were granted;

       

	
      (iv) 
	
      Any
      performance objectives upon which the earning of performance-based
      restricted stock and deferred stock awards, including outstanding stock
      plan awards, and other long-term incentive awards is conditioned shall be
      deemed to have been met at target level at the date of termination, and
      restricted stock and deferred stock awards, including outstanding stock
      plan awards, and other long-term incentive awards (to the extent then or
      previously earned, in the case of performance-based awards) shall become
      fully vested and non-forfeitable at the date of such termination, and, in
      other respects, such awards shall be governed by the plans and programs
      and the agreements and other documents pursuant to which such awards were
      granted;

       

	
      (v) 
	
      Disability
      benefits shall be payable in accordance with the Bank's plans, programs
      and policies, including the SERPS, and all deferral arrangements under
      Section 5(d) will be settled in accordance with the plans and programs
      governing the deferral;

       

	
      (vi) 
	
      If
      Executive elects after termination of employment continued coverage under
      the Health Plan in accordance with the applicable provisions of COBRA, the
      Bank shall pay to Executive on a monthly basis during such COBRA
      continuation period an amount equal on an after-tax basis to the total
      cost of 

       

 

7

 

	 	such coverage. Prior to
      the expiration of the maximum COBRA continuation period available to
      Executive, provided that Executive theretofore shall have complied with
      the conditions set forth in Section 10, the Bank shall make a good faith
      effort to obtain insured coverage for Executive (and his spouse and
      eligible dependents, if any, for whom coverage had been provided during
      the COBRA continuation period) that is substantially comparable to such
      COBRA continuation coverage, which insured coverage shall begin on the
      date of expiration of Executive’s COBRA continuation period and continue
      until the earliest of: (1) Executive’s eligibility for medical coverage
      under the Bank’s Health Plan, as a retiree or active employee, (2)
      Executive’s eligibility for medical coverage under a plan maintained by a
      subsequent employer or other entity to which Executive provides services,
      (3) Executive’s eligibility for Medicare, or (4) Executive’s attainment of
      Social Security retirement age. In the event that the Bank determines, in
      its sole discretion, that it is unable to obtain such insured coverage for
      Executive (and his spouse and eligible dependents, if any, for whom
      coverage had been provided during the COBRA continuation period) or in the
      event that Executive determines, in his sole discretion, that any such
      insured coverage offered by the Bank is not substantially comparable to
      such COBRA continuation coverage, the Bank shall pay to Executive,
      provided that Executive shall not have become eligible for medical
      coverage under (1) the Bank’s Health Plan, as a retiree or active
      employee, (2) a plan maintained by a subsequent employer or other entity
      to which Executive provides services, or (3) Medicare and, provided
      further, that Executive theretofore shall have complied with the
      conditions set forth in Section 10, a lump sum amount equal on an
      after-tax basis to the present value of the total cost of retiree medical
      coverage under the Health Plan that would have been incurred by both
      Executive and the Bank on behalf of Executive (and his spouse and eligible
      dependents, if any, for whom coverage had been provided during the COBRA
      continuation period) if Executive (and such spouse and dependents, if any)
      had been eligible for such retiree medical coverage from the end of
      Executive’s COBRA continuation period until Executive’s attainment of
      Social Security retirement age, calculated on the assumption that the cost
      of such coverage would remain unchanged from that in effect for the year
      in which such lump sum is paid. Such lump sum amount shall be calculated
      by an actuary selected by the Bank and paid in cash as soon as
      administratively practicable following the expiration of Executive’s COBRA
      continuation period and shall not be subject to reduction or forfeiture by
      reason of any coverage for which Executive may thereafter become eligible
      by reason of subsequent employment or otherwise. In addition, as soon as
      administratively practicable following Executive’s termination of
      employment, provided that Executive shall have complied with the
      conditions set forth in Section 10, the Bank shall pay to Executive a lump
      sum amount equal on an after-tax basis to the present value of the sum of
      (1) the amount that Executive and the Bank would have been paid for
      coverage under the Bank’s group long-term disability policy from
      Executive’s termination of employment until Executive’s attainment of
      Social Security retirement age, calculated on the assumption that the cost
      of such coverage would remain unchanged from that in effect for the year
      in which Executive’s termination occurred; and (2) the amount that
      Executive and the Bank would have paid to continue Executive’s group life
      insurance coverage from Executive’s termination of employment until
      Executive’s attainment of Social Security retirement age, calculated on
      the assumption that the cost of such coverage would remain unchanged from
      that in effect for the year in which Executive’s termination occurred. For
      purposes of this Section, present value shall be calculated on the basis
      of the discount rate set forth in the Bank’s qualified retirement plan for
      the determination of lump sum
payments. 

 

8

    (d)  Other
Terms of Payment Following Retirement, Death, or Disability. Nothing
in this Section 6 shall limit the benefits payable or provided in the event
Executive's employment terminates due to Retirement, death, or Disability under
the terms of plans or programs of the Bank more favorable to Executive (or his
beneficiaries) than the benefits payable or provided under this Section 6
(except in the case of annual incentives in lieu of which amounts are paid
hereunder), including plans and programs adopted after the date of this
Agreement. Amounts payable under this Section 6 following Executive's
termination of employment, other than those expressly payable following
determination of performance for the year of termination for purposes of annual
incentive compensation or otherwise expressly payable on a deferred basis, will
be paid as promptly as practicable after such termination of
employment.

 

7.  Termination
of Employment For Reasons Other Than Retirement, Death or
Disability.

 

    (a)  Termination
by the Bank for Cause. The
Bank may terminate the employment of Executive hereunder for Cause (as defined
in Section 8(a)) at any time. At the time Executive's employment is terminated
for Cause, the Term will terminate, all obligations of the Bank and Executive
under Sections 1 through 5 of this Agreement will immediately cease except for
obligations which expressly continue after termination of employment by the Bank
for Cause, and the Bank will pay Executive, and Executive will be entitled to
receive, the following: 

 

	
      (i) 
	
      Executive's
      Compensation Accrued at Termination (as defined in Section
      8(c));

       

	
      (ii)
	
      All
      stock options, restricted stock and deferred stock awards, including
      outstanding stock plan awards, and all other long-term incentive awards
      will be governed by the terms of the plans and programs under which the
      awards were granted; and

       

	
      (iii)
	
      All
      deferral arrangements under Section 5(d) will be settled in accordance
      with the plans and programs governing the deferral, and all rights, if
      any, under the SERPS and any other benefit plan shall be governed by such
      plans.

       

    (b)  Termination
by Executive Other Than For Good Reason. Executive may terminate his
employment hereunder voluntarily for reasons other than Good Reason (as defined
in Section 8(e)) at any time upon 90 days' written notice to the Bank. At the
time Executive's employment is terminated by Executive other than for Good
Reason the Term will terminate, all obligations of the Bank and Executive under
Sections 1 through 5 of this Agreement will immediately cease, and the Bank will
pay Executive, and Executive will be entitled to receive, the following:

 

	
      (i) 
	
      Executive's
      Compensation Accrued at Termination;

       

	
      (ii) 
	
      All
      stock options, restricted stock and deferred stock awards, including
      outstanding stock plan awards, and all other long-term incentive awards
      will be governed by the terms of the plans and programs under which the
      awards were granted;

       

	
      (iii) 
	
      All
      deferral arrangements under Section 5(d) will be settled in accordance
      with the plans and programs governing the deferral, and all rights under
      the SERPS and any other benefit plan shall be governed by such
      plans.

 

9

    (c)  Termination
by the Bank Without Cause Prior to or More than Two Years After a Change in
Control. The
Bank may terminate the employment of Executive hereunder without Cause, if at
the date of termination no Change in Control has occurred or such date of
termination is at least two years after the most recent Change in Control, upon
at least 90 days' written notice to Executive. The foregoing notwithstanding,
the Bank may elect, by written notice to Executive, to terminate Executive's
positions specified in Sections 1 and 3 and all other obligations of Executive
and the Bank under Section 3 at a date earlier than the expiration of such
90-day period, if so specified by the Bank in the written notice, provided that
Executive shall be treated as an employee of the Bank (without any assigned
duties) for all other purposes of this Agreement, including for purposes of
Sections 4 and 5, from such specified date until the expiration of such 90-day
period. At the time Executive's employment is terminated by the Bank (i.e., at
the expiration of such notice period), the Term will terminate, all remaining
obligations of the Bank and Executive under Sections 1 through 5 of this
Agreement will immediately cease (except for obligations which continue after
termination of employment as expressly provided herein), and the Bank will pay
Executive, and Executive will be entitled to receive, the following:

 

	
      (i) 
	
      Executive's
      Compensation Accrued at Termination;

       

	
      (ii) 
	
      Cash
      in an aggregate amount equal to three times the sum of (A) Executive's
      Base Salary under Section 4(a) immediately prior to termination plus (B)
      an amount equal to the greater of (x) the portion of Executive's annual
      target incentive compensation potentially payable in cash to Executive
      (i.e., excluding the portion payable in stock or in other non-cash awards)
      for the year of termination or (y) the portion of Executive's annual
      incentive compensation that became payable in cash to Executive (i.e.,
      excluding the portion payable in stock or in other non-cash awards) for
      the latest year preceding the year of termination based on performance
      actually achieved in that latest year. The amount determined to be payable
      under this Section 7(c)(ii) shall be payable in monthly installments over
      the thirty-six months following termination, without interest, except the
      Bank may elect to accelerate payment of the remaining balance of such
      amount and to pay it as a lump sum, without discount;

       

	
      (iii) 
	
      In
      lieu of any annual incentive compensation under Section 4(b) for the year
      in which Executive's employment terminated, an amount equal to the portion
      of Executive's annual target incentive compensation potentially payable in
      cash to Executive (i.e., excluding the portion payable in stock or in
      other non-cash awards) for the year of termination, multiplied by a
      fraction the numerator of which is the number of days Executive was
      employed in the year of termination and the denominator of which is the
      total number of days in the year of termination;

       

	
      (iv) 
	
      Stock
      options held by Executive at termination, if not then vested and
      exercisable, will become fully vested and exercisable at the date of such
      termination, and, in other respects (including the period following
      termination during which such options may be exercised), such options
      shall be governed by the plans and programs and the agreements and other
      documents pursuant to which such options were granted;

       

	
      (v) 
	
      Any
      performance objectives upon which the earning of performance-based
      restricted stock and deferred stock awards, including outstanding stock
      plan awards, and other long-term incentive awards is conditioned shall be
      deemed to have been met at target level at the date of termination, and
      restricted stock and deferred stock awards, including outstanding stock
      plan awards, and other long-term incentive awards (to the extent then or
      previously earned, in the case of performance-based awards) shall become
      fully vested and non-forfeitable at the date of such termination, and, in
      other respects, such awards shall be governed by the plans and programs
      and the agreements and other documents pursuant to which such awards were
      granted;

       

 

10

 

	
      (vi) 
	
      All
      deferral arrangements under Section 5(d) will be settled in accordance
      with the plans and programs governing the deferral;

       

	
      (vii) 
	
      All
      rights under the SERPS shall be governed by such plans;

       

	
      (viii)
	
      If
      Executive elects after termination of employment continued coverage under
      the Health Plan in accordance with the applicable provisions of COBRA, the
      Bank shall pay to Executive on a monthly basis during such COBRA
      continuation period an amount equal on an after-tax basis to the total
      cost of such coverage. If the maximum COBRA continuation period available
      to Executive shall be less than three years, prior to the expiration of
      the maximum COBRA continuation period available to Executive, provided
      that Executive theretofore shall have complied with the conditions set
      forth in Section 10, the Bank shall make a good faith effort to obtain
      insured coverage for Executive (and his spouse and eligible dependents, if
      any, for whom coverage had been provided during the COBRA continuation
      period) that is substantially comparable to such COBRA continuation
      coverage, which insured coverage shall begin on the date of expiration of
      Executive’s COBRA continuation period and continue until the third
      anniversary of Executive’s termination of employment. In the event that
      the Bank determines, in its sole discretion, that it is unable to obtain
      such insured coverage for Executive (and his spouse and eligible
      dependents, if any, for whom coverage had been provided during the COBRA
      continuation period) or in the event that Executive determines, in his
      sole discretion, that any such insured coverage offered by the Bank is not
      substantially comparable to such COBRA continuation coverage, the Bank
      shall pay to Executive, provided that Executive shall not have become
      eligible for medical coverage under (1) the Bank’s Health Plan, as a
      retiree or active employee, (2) a plan maintained by a subsequent employer
      or other entity to which Executive provides services, or (3) Medicare and,
      provided further, that Executive theretofore shall have complied with the
      conditions set forth in Section 10, a lump sum amount equal on an
      after-tax basis to the present value of the total cost of retiree medical
      coverage under the Health Plan that would have been incurred by both
      Executive and the Bank on behalf of Executive (and his spouse and eligible
      dependents, if any, for whom coverage had been provided during the COBRA
      continuation period) if Executive (and such spouse and dependents, if any)
      had been eligible for such retiree medical coverage from the end of
      Executive’s COBRA continuation period until the third anniversary of
      Executive’s termination of employment, calculated on the assumption that
      the cost of such coverage would remain unchanged from that in effect for
      the year in which such lump sum is paid. Such lump sum amount shall be
      calculated by an actuary selected by the Bank and paid in cash as soon as
      administratively practicable following the expiration of Executive’s COBRA
      continuation period and shall not be subject to reduction or forfeiture by
      reason of any coverage for which Executive may thereafter become eligible
      by reason of subsequent employment or otherwise. In addition, as soon as
      administratively practicable following Executive’s termination of
      employment, provided that 

 

11

 

	 	Executive shall have
      complied with the conditions set forth in Section 10, the Bank shall pay
      to Executive a lump sum amount equal on an after-tax basis to the present
      value of the sum of (1) the amount that Executive and the Bank would have
      paid, had he remained employed, for coverage under the Bank’s group
      long-term disability policy from the date of Executive’s termination of
      employment until the third anniversary of Executive’s termination of
      employment, calculated on the assumption that the cost of such coverage
      would remain unchanged from that in effect for the year in which
      Executive’s termination occurred; and (2) the amount that Executive and
      the Bank would have paid to continue Executive’s group life insurance
      coverage, had he remained employed, from the date of Executive’s
      termination of employment until the third anniversary of Executive’s
      termination of employment, calculated on the assumption that the cost of
      such coverage would remain unchanged from that in effect for the year in
      which Executive’s termination occurred. For purposes of this Section,
      present value shall be calculated on the basis of the discount rate set
      forth in the Bank’s qualified retirement plan for the determination of
      lump sum payments. 

 

    (d)  Termination
by Executive for Good Reason Prior to or More than Two Years After a Change in
Control.
Executive may terminate his employment hereunder for Good Reason, prior to a
Change in Control or after the second anniversary of the most recent Change in
Control, upon 90 days' written notice to the Bank; provided, however, that, if
the Bank has corrected the basis for such Good Reason within 30 days after
receipt of such notice, Executive may not terminate his employment for Good
Reason, and therefore Executive's notice of termination will automatically
become null and void. At the time Executive's employment is terminated by
Executive for Good Reason (i.e., at the expiration of such notice period), the
Term will terminate, all obligations of the Bank and Executive under Sections 1
through 5 of this Agreement will immediately cease (except for obligations which
continue after termination of employment as expressly provided herein), and the
Bank will pay Executive, and Executive will be entitled to receive, the
following: 

 

	
      (i) 
	
      Executive's
      Compensation Accrued at Termination;

       

	
      (ii) 
	
      Cash
      in an aggregate amount equal to three times the sum of (A) Executive's
      Base Salary under Section 4(a) immediately prior to termination plus (B)
      an amount equal to the greater of (x) the portion of Executive's annual
      target incentive compensation potentially payable in cash to Executive
      (i.e., excluding the portion payable in stock or in other non-cash awards)
      for the year of termination or (y) the portion of Executive's annual
      incentive compensation that became payable in cash to Executive (i.e.,
      excluding the portion payable in stock or in other non-cash awards) for
      the latest year preceding the year of termination based on performance
      actually achieved in that latest year. The amount determined to be payable
      under this Section 7(d)(ii) shall be payable in monthly installments over
      the 36 months following termination, without interest, except the Bank may
      elect to accelerate payment of the remaining balance of such amount and to
      pay it as a lump sum, without discount;

       

	
      (iii) 
	
      In
      lieu of any annual incentive compensation under Section 4(b) for the year
      in which Executive's employment terminated, an amount equal to the portion
      of Executive's annual target incentive compensation potentially payable in
      cash to Executive (i.e., excluding the portion payable in stock or in
      other non-cash awards) for the year of termination, multiplied by a
      fraction the numerator of which is the number of days Executive was
      employed in the year of termination and the denominator of which is the
      total number of days in the year of termination;

       

 

12

 

	
      (iv) 
	
      Stock
      options held by Executive at termination, if not then vested and
      exercisable, will become fully vested and exercisable at the date of such
      termination, and, in other respects (including the period following
      termination during which such options may be exercised), such options
      shall be governed by the plans and programs and the agreements and other
      documents pursuant to which such options were granted;

       

	
      (v) 
	
      Any
      performance objectives upon which the earning of performance-based
      restricted stock and deferred stock awards, including outstanding stock
      plan awards, and other long-term incentive awards is conditioned shall be
      deemed to have been met at target level at the date of termination, and
      restricted stock and deferred stock awards, including outstanding stock
      plan awards, and other long-term incentive awards (to the extent then or
      previously earned, in the case of performance-based awards) shall become
      fully vested and non-forfeitable at the date of such termination, and, in
      other respects, such awards shall be governed by the plans and programs
      and the agreements and other documents pursuant to which such awards were
      granted;

       

	
      (vi) 
	
      All
      deferral arrangements under Section 5(d) will be settled in accordance
      with the plans and programs governing the deferral;

       

	
      (vii) 
	
      All
      rights under the SERPS shall be governed by such plans;
      and

       

	
      (viii) 
	
      If
      Executive elects after termination of employment continued coverage under
      the Health Plan in accordance with the applicable provisions of COBRA, the
      Bank shall pay to Executive on a monthly basis during such COBRA
      continuation period an amount equal on an after-tax basis to the total
      cost of such coverage. If the maximum COBRA continuation period available
      to Executive shall be less than three years, prior to the expiration of
      the maximum COBRA continuation period available to Executive, provided
      that Executive theretofore shall have complied with the conditions set
      forth in Section 10, the Bank shall make a good faith effort to obtain
      insured coverage for Executive (and his spouse and eligible dependents, if
      any, for whom coverage had been provided during the COBRA continuation
      period) that is substantially comparable to such COBRA continuation
      coverage, which insured coverage shall begin on the date of expiration of
      Executive’s COBRA continuation period and continue until the third
      anniversary of Executive’s termination of employment. In the event that
      the Bank determines, in its sole discretion, that it is unable to obtain
      such insured coverage for Executive (and his spouse and eligible
      dependents, if any, for whom coverage had been provided during the COBRA
      continuation period) or in the event that Executive determines, in his
      sole discretion, that any such insured coverage offered by the Bank is not
      substantially comparable to such COBRA continuation coverage, the Bank
      shall pay to Executive, provided that Executive shall not have become
      eligible for medical coverage under (1) the Bank’s Health Plan, as a
      retiree or active employee, (2) a plan maintained by a subsequent employer
      or other entity to which Executive provides services, or (3) Medicare and,
      provided further, that Executive theretofore shall have complied with the
      conditions set forth in Section 10, a lump sum amount equal on an
      after-tax basis to the present value of the total cost of retiree
      medical

 

13

 

	 	coverage under the
      Health Plan that would have been incurred by both Executive and the Bank
      on behalf of Executive (and his spouse and eligible dependents, if any,
      for whom coverage had been provided during the COBRA continuation period)
      if Executive (and such spouse and dependents, if any) had been eligible
      for such retiree medical coverage from the end of Executive’s COBRA
      continuation period until the third anniversary of Executive’s termination
      of employment, calculated on the assumption that the cost of such coverage
      would remain unchanged from that in effect for the year in which such lump
      sum is paid. Such lump sum amount shall be calculated by an actuary
      selected by the Bank and paid in cash as soon as administratively
      practicable following the expiration of Executive’s COBRA continuation
      period and shall not be subject to reduction or forfeiture by reason of
      any coverage for which Executive may thereafter become eligible by reason
      of subsequent employment or otherwise. In addition, as soon as
      administratively practicable following Executive’s termination of
      employment, provided that Executive shall have complied with the
      conditions set forth in Section 10, the Bank shall pay to Executive a lump
      sum amount equal on an after-tax basis to the present value of the sum of
      (1) the amount that Executive and the Bank would have paid, had he
      remained employed, for coverage under the Bank’s group long-term
      disability policy from the date of Executive’s termination of employment
      until the third anniversary of Executive’s termination of employment,
      calculated on the assumption that the cost of such coverage would remain
      unchanged from that in effect for the year in which Executive’s
      termination occurred; and (2) the amount that Executive and the Bank would
      have paid to continue Executive’s group life insurance coverage, had he
      remained employed, from the date of Executive’s termination of employment
      until the third anniversary of Executive’s termination of employment,
      calculated on the assumption that the cost of such coverage would remain
      unchanged from that in effect for the year in which Executive’s
      termination occurred. For purposes of this Section, present value shall be
      calculated on the basis of the discount rate set forth in the Bank’s
      qualified retirement plan for the determination of lump sum
      payments. 

 

If any
payment or benefit under this Section 7(d) is based on Base Salary or other
level of compensation or benefits at the time of Executive's termination and if
a reduction in such Base Salary or other level of compensation or benefit was
the basis for Executive's termination for Good Reason, then the Base Salary or
other level of compensation in effect before such reduction shall be used to
calculate payments or benefits under this Section 7(d)

 

    (e)  Termination
by the Bank Without Cause Within Two Years After a Change in
Control. The
Bank may terminate the employment of Executive hereunder without Cause,
simultaneously with or within two years after a Change in Control, upon at least
90 days' written notice to Executive. The foregoing notwithstanding, the Bank
may elect, by written notice to Executive, to terminate Executive's positions
specified in Sections 1 and 3 and all other obligations of Executive and the
Bank under Section 3 at a date earlier than the expiration of such 90-day notice
period, if so specified by the Bank in the written notice, provided that
Executive shall be treated as an employee of the Bank (without any assigned
duties) for all other purposes of this Agreement, including for purposes of
Sections 4 and 5, from such specified date until the expiration of such 90-day
period. At the time Executive's employment is terminated by the Bank (i.e., at
the expiration of such notice period), the Term will terminate, all remaining
obligations of the Bank and Executive under Sections 1 through 5 of this
Agreement will immediately cease (except for obligations which continue after
termination of employment as expressly provided herein), and the Bank will pay
Executive, and Executive will be entitled to receive, the following:

 

	
      (i) 
	
      Executive's
      Compensation Accrued at Termination;

 

14

 

	
      (ii) 
	
      Cash
      in an aggregate amount equal to three times the sum of (A) Executive's
      Base Salary under Section 4(a) immediately prior to termination plus (B)
      an amount equal to the greater of (x) the portion of Executive's annual
      target incentive compensation potentially payable in cash to Executive
      (i.e., excluding the portion payable in stock or in other non-cash awards)
      for the year of termination or (y) the portion of Executive's annual
      incentive compensation that became payable in cash to Executive (i.e.,
      excluding the portion payable in stock or in other non-cash awards) for
      the latest year preceding the year of termination based on performance
      actually achieved in that latest year. The amount determined to be payable
      under this Section 7(e)(ii) shall be paid by the Bank not later than 15
      days after Executive's termination;

       

	
      (iii) 
	
      In
      lieu of any annual incentive compensation under Section 4(b) for the year
      in which Executive's employment terminated, an amount equal to the portion
      of Executive's annual target incentive compensation potentially payable in
      cash to Executive (i.e., excluding the portion payable in stock or in
      other non-cash awards) for the year of termination, multiplied by a
      fraction the numerator of which is the number of days Executive was
      employed in the year of termination and the denominator of which is the
      total number of days in the year of termination;

       

	
      (iv) 
	
      Stock
      options held by Executive at termination, if not then vested and
      exercisable, will become fully vested and exercisable at the date of such
      termination, and any such options granted on or after the date hereof
      shall remain outstanding and exercisable until the stated expiration date
      of the Option as though Executive's employment did not terminate, and, in
      other respects, such options shall be governed by the plans and programs
      and the agreements and other documents pursuant to which such options were
      granted;

       

	
      (v) 
	
      Any
      performance objectives upon which the earning of performance-based
      restricted stock and deferred stock awards, including outstanding stock
      plan awards, and other long-term incentive awards is conditioned shall be
      deemed to have been met at target level at the date of termination, and
      restricted stock and deferred stock awards, including outstanding stock
      plan awards, and other long-term incentive awards (to the extent then or
      previously earned, in the case of performance-based awards) shall become
      fully vested and non-forfeitable at the date of such termination, and, in
      other respects, such awards shall be governed by the plans and programs
      and the agreements and other documents pursuant to which such awards were
      granted;

       

	
      (vi) 
	
      All
      deferral arrangements under Section 5(d) will be settled in accordance
      with the plans and programs governing the deferral;

       

	
      (vii) 
	
      All
      rights under the SERPS shall be governed by such plans;
      and

       

 

15

 

	
      (viii) 
	
      If
      Executive elects after termination of employment continued coverage under
      the Health Plan in accordance with the applicable provisions of COBRA, the
      Bank shall pay to Executive on a monthly basis during such COBRA
      continuation period an amount equal on an after-tax basis to the total
      cost of such coverage. If the maximum COBRA continuation period available
      to Executive shall be less than three years, prior to the expiration of
      the maximum COBRA continuation period available to Executive, provided
      that Executive theretofore shall have complied with the conditions set
      forth in Section 10, the Bank shall make a good faith effort to obtain
      insured coverage for Executive (and his spouse and eligible dependents, if
      any, for whom coverage had been provided during the COBRA continuation
      period) that is substantially comparable to such COBRA continuation
      coverage, which insured coverage shall begin on the date of expiration of
      Executive’s COBRA continuation period and continue until the third
      anniversary of Executive’s termination of employment. In the event that
      the Bank determines, in its sole discretion, that it is unable to obtain
      such insured coverage for Executive (and his spouse and eligible
      dependents, if any, for whom coverage had been provided during the COBRA
      continuation period) or in the event that Executive determines, in his
      sole discretion, that any such insured coverage offered by the Bank is not
      substantially comparable to such COBRA continuation coverage, the Bank
      shall pay to Executive, provided that Executive shall not have become
      eligible for medical coverage under (1) the Bank’s Health Plan, as a
      retiree or active employee, (2) a plan maintained by a subsequent employer
      or other entity to which Executive provides services, or (3) Medicare and,
      provided further, that Executive theretofore shall have complied with the
      conditions set forth in Section 10, a lump sum amount equal on an
      after-tax basis to the present value of the total cost of retiree medical
      coverage under the Health Plan that would have been incurred by both
      Executive and the Bank on behalf of Executive (and his spouse and eligible
      dependents, if any, for whom coverage had been provided during the COBRA
      continuation period) if Executive (and such spouse and dependents, if any)
      had been eligible for such retiree medical coverage from the end of
      Executive’s COBRA continuation period until the third anniversary of
      Executive’s termination of employment, calculated on the assumption that
      the cost of such coverage would remain unchanged from that in effect for
      the year in which such lump sum is paid. Such lump sum amount shall be
      calculated by an actuary selected by the Bank and paid in cash as soon as
      administratively practicable following the expiration of Executive’s COBRA
      continuation period and shall not be subject to reduction or forfeiture by
      reason of any coverage for which Executive may thereafter become eligible
      by reason of subsequent employment or otherwise. In addition, as soon as
      administratively practicable following Executive’s termination of
      employment, provided that Executive shall have complied with the
      conditions set forth in Section 10, the Bank shall pay to Executive a lump
      sum amount equal on an after-tax basis to the present value of the sum of
      (1) the amount that Executive and the Bank would have paid, had he
      remained employed, for coverage under the Bank’s group long-term
      disability policy from the date of Executive’s termination of employment
      until the third anniversary of Executive’s termination of employment,
      calculated on the assumption that the cost of such coverage would remain
      unchanged from that in effect for the year in which Executive’s
      termination occurred; and (2) the amount that Executive and the Bank would
      have paid to continue Executive’s group life insurance coverage, had he
      remained employed, from the date of Executive’s termination of employment
      until the third anniversary of Executive’s termination of employment,
      calculated on the assumption that the cost of such coverage would remain
      unchanged from that in effect for the year in which Executive’s
      termination occurred. For purposes of this Section, present value shall be
      calculated on the basis of the discount rate set forth in the Bank’s
      qualified retirement plan for the determination of lump sum
      payments.

 

16

    (f)  Termination
by Executive for Good Reason Within Two Years After a Change in
Control.
Executive may terminate his employment hereunder for Good Reason, simultaneously
with or within two years after a Change in Control, upon 90 days' written notice
to the Bank; provided, however, that, if the Bank has corrected the basis for
such Good Reason within 30 days after receipt of such notice, Executive may not
terminate his employment for Good Reason, and therefore Executive's notice of
termination will automatically become null and void. At the time Executive's
employment is terminated by Executive for Good Reason (i.e., at the expiration
of such notice period), the Term will terminate, all obligations of the Bank and
Executive under Sections 1 through 5 of this Agreement will immediately cease
(except for obligations which continue after termination of employment as
expressly provided herein), and the Bank will pay Executive, and Executive will
be entitled to receive, the following: 

 

	
      (i) 
	
      Executive's
      Compensation Accrued at Termination;

       

	
      (ii) 
	
      Cash
      in an aggregate amount equal to three times the sum of (A) Executive's
      Base Salary under Section 4(a) immediately prior to termination plus (B)
      an amount equal to the greater of (x) the portion of Executive's annual
      target incentive compensation potentially payable in cash to Executive
      (i.e., excluding the portion payable in stock or in other non-cash awards)
      for the year of termination or (y) the portion of Executive's annual
      incentive compensation that became payable in cash to Executive (i.e.,
      excluding the portion payable in stock or in other non-cash awards) for
      the latest year preceding the year of termination based on performance
      actually achieved in that latest year. The amount determined to be payable
      under this Section 7(f)(ii) shall be paid by the Bank not later than 15
      days after Executive's termination;

       

	
      (iii) 
	
      In
      lieu of any annual incentive compensation under Section 4(b) for the year
      in which Executive's employment terminated, an amount equal to the portion
      of Executive's annual target incentive compensation potentially payable in
      cash to Executive (i.e., excluding the portion payable in stock or in
      other non-cash awards) for the year of termination, multiplied by a
      fraction the numerator of which is the number of days Executive was
      employed in the year of termination and the denominator of which is the
      total number of days in the year of termination;

       

	
      (iv) 
	
      Stock
      options held by Executive at termination, if not then vested and
      exercisable, will become fully vested and exercisable at the date of such
      termination, and any such options granted on or after the date hereof
      shall remain outstanding and exercisable until the stated expiration date
      of the Option as though Executive's employment did not terminate, and, in
      other respects, such options shall be governed by the plans and programs
      and the agreements and other documents pursuant to which such options were
      granted;

       

	
      (v) 
	
      Any
      performance objectives upon which the earning of performance-based
      restricted stock and deferred stock awards, including outstanding stock
      plan awards, and other long-term incentive awards is conditioned shall be
      deemed to have been met at target level at the date of termination, and
      restricted stock and deferred stock awards, including outstanding stock
      plan awards, and other long-term incentive awards (to the extent then or
      previously earned, in the case of performance-based awards) shall become
      fully vested and non-forfeitable at the date of such termination, and, in
      other respects, such awards shall be governed by the plans and programs
      and the agreements and other documents pursuant to which such awards were
      granted;

       

 

17

 

	
      (vi) 
	
      All
      deferral arrangements under Section 5(d) will be settled in accordance
      with the plans and programs governing the deferral;

       

	
      (vii) 
	
      All
      rights under the SERPS shall be governed by such plans; and

       

	
      (viii) 
	
      If
      Executive elects after termination of employment continued coverage under
      the Health Plan in accordance with the applicable provisions of COBRA, the
      Bank shall pay to Executive on a monthly basis during such COBRA
      continuation period an amount equal on an after-tax basis to the total
      cost of such coverage. If the maximum COBRA continuation period available
      to Executive shall be less than three years, prior to the expiration of
      the maximum COBRA continuation period available to Executive, provided
      that Executive theretofore shall have complied with the conditions set
      forth in Section 10, the Bank shall make a good faith effort to obtain
      insured coverage for Executive (and his spouse and eligible dependents, if
      any, for whom coverage had been provided during the COBRA continuation
      period) that is substantially comparable to such COBRA continuation
      coverage, which insured coverage shall begin on the date of expiration of
      Executive’s COBRA continuation period and continue until the third
      anniversary of Executive’s termination of employment. In the event that
      the Bank determines, in its sole discretion, that it is unable to obtain
      such insured coverage for Executive (and his spouse and eligible
      dependents, if any, for whom coverage had been provided during the COBRA
      continuation period) or in the event that Executive determines, in his
      sole discretion, that any such insured coverage offered by the Bank is not
      substantially comparable to such COBRA continuation coverage, the Bank
      shall pay to Executive, provided that Executive shall not have become
      eligible for medical coverage under (1) the Bank’s Health Plan, as a
      retiree or active employee, (2) a plan maintained by a subsequent employer
      or other entity to which Executive provides services, or (3) Medicare and,
      provided further, that Executive theretofore shall have complied with the
      conditions set forth in Section 10, a lump sum amount equal on an
      after-tax basis to the present value of the total cost of retiree medical
      coverage under the Health Plan that would have been incurred by both
      Executive and the Bank on behalf of Executive (and his spouse and eligible
      dependents, if any, for whom coverage had been provided during the COBRA
      continuation period) if Executive (and such spouse and dependents, if any)
      had been eligible for such retiree medical coverage from the end of
      Executive’s COBRA continuation period until the third anniversary of
      Executive’s termination of employment, calculated on the assumption that
      the cost of such coverage would remain unchanged from that in effect for
      the year in which such lump sum is paid. Such lump sum amount shall be
      calculated by an actuary selected by the Bank and paid in cash as soon as
      administratively practicable following the expiration of Executive’s COBRA
      continuation period and shall not be subject to reduction or forfeiture by
      reason of any coverage for which Executive may thereafter become eligible
      by reason of subsequent employment or otherwise. In addition, as soon as
      administratively practicable following Executive’s termination of
      employment, provided that Executive shall have complied with the
      conditions set forth in Section 10, the Bank shall pay to Executive a lump
      sum amount equal on an after-tax basis to the present value of the sum of
      (1) the amount that Executive and the Bank 

 

18

 

	 	would have paid, had he
      remained employed, for coverage under the Bank’s group long-term
      disability policy from the date of Executive’s termination of employment
      until the third anniversary of Executive’s termination of employment,
      calculated on the assumption that the cost of such coverage would remain
      unchanged from that in effect for the year in which Executive’s
      termination occurred; and (2) the amount that Executive and the Bank would
      have paid to continue Executive’s group life insurance coverage, had he
      remained employed, from the date of Executive’s termination of employment
      until the third anniversary of Executive’s termination of employment,
      calculated on the assumption that the cost of such coverage would remain
      unchanged from that in effect for the year in which Executive’s
      termination occurred. For purposes of this Section, present value shall be
      calculated on the basis of the discount rate set forth in the Bank’s
      qualified retirement plan for the determination of lump sum
      payments. 

 

If any
payment or benefit under this Section 7(f) is based on Base Salary or other
level of compensation or benefits at the time of Executive's termination and if
a reduction in such Base Salary or other level of compensation or benefit was
the basis for Executive's termination for Good Reason, then the Base Salary or
other level of compensation in effect before such reduction shall be used to
calculate payments or benefits under this Section 7(f).

 

    (g)  Other
Terms Relating to Certain Terminations of Employment. Whether
a termination is deemed to be at or within two years after a Change in Control
for purposes of Sections 7(c), (d), (e), or (f) is determined at the date of
termination, regardless of whether the Change in Control had occurred at the
time a notice of termination was given. In the event Executive's employment
terminates for any reason set forth in Section 7(b) through (f), Executive will
be entitled to the benefit of any terms of plans or agreements applicable to
Executive which are more favorable than those specified in this Section 7
(except in the case of annual incentives in lieu of which amounts are paid
hereunder). Amounts payable under this Section 7 following Executive's
termination of employment, other than those expressly payable on a deferred
basis, will be paid as promptly as practicable after such a termination of
employment, and such amounts payable under Section 7(e) or 7(f) will be paid in
no event later than 15 days after Executive's termination of employment unless
not determinable within such period. 

 

8.  Definitions
Relating to Termination Events.

 

(a)  "Cause." For
purposes of this Agreement, "Cause" shall mean: 

 

	
      (i) 
	
      Executive’s
      willful and continued failure to substantially perform his duties
      hereunder (other than any such failure resulting from incapacity due to
      physical or mental illness or Disability or any failure after the issuance
      of a notice of termination by Executive for Good Reason) which failure is
      demonstrably and materially damaging to the financial condition or
      reputation of the Company, the Bank and/or their affiliates, and which
      failure continues more than 48 hours after a written demand for
      substantial performance is delivered to Executive by the Board, which
      demand specifically identifies the manner in which the Board believes that
      Executive has not substantially performed his duties hereunder and the
      demonstrable and material damage caused thereby; or

       

	
      (ii) 
	
      the
      willful engaging by Executive in conduct which is demonstrably and
      materially injurious to the Company, the Bank or their affiliates,
      monetarily or otherwise.

       

 

19

No act,
or failure to act, on the part of Executive shall be deemed "willful" unless
done, or omitted to be done, by Executive not in good faith and without
reasonable belief that his action or omission was in the best interest of the
Bank and the Company. Notwithstanding the foregoing, Executive shall not be
deemed to have been terminated for Cause unless and until there shall have been
delivered to Executive a copy of the resolution duly adopted by the affirmative
vote of not less than three-quarters (3/4) of the entire membership of the Board
at a meeting of the Board (after reasonable notice to Executive and an
opportunity for Executive, together with Executive's counsel, to be heard before
the Board) finding that, in the good faith opinion of the Board, Executive was
guilty of conduct set forth above in this definition and specifying the
particulars thereof in detail.

 

(b)  "Change
in Control." For
purposes of this Agreement, a "Change in Control" shall be deemed to have
occurred if, during the term of this Agreement: 

 

	
      (i) 
	
      the
      Company, or the mutual holding company parent of the Company, whether it
      remains a mutual holding company or converts to the stock form of
      organization (the "Mutual Holding Company"), merges into or consolidates
      with another corporation, or merges another corporation into the Company
      or the Mutual Holding Company, and as a result, with respect to the
      Company, less than a majority of the combined voting power of the
      resulting corporation immediately after the merger or consolidation is
      held by "Persons" as such term is used for purposes of Section 13(d) or
      14(d) of the Securities Exchange Act of 1934, as amended (the "Exchange
      Act") who were stockholders of the Company immediately before the merger
      or consolidation or, with respect to the Mutual Holding Company, less than
      a majority of the directors of the resulting corporation immediately after
      the merger or consolidation were directors of the Mutual Holding Company
      immediately before the merger or consolidation;

       

	
      (ii) 
	
      following
      a conversion of the Mutual Holding Company to the stock form of
      organization, any Person (other than any trustee or other fiduciary
      holding securities under an employee benefit plan of the Bank or the
      Company), becomes the "Beneficial Owner" (as defined in Rule 13d-3 under
      the Exchange Act), directly or indirectly, of securities of the resulting
      corporation representing 25% or more of the combined voting power of the
      resulting corporation's then-outstanding securities;

       

	
      (iii) 
	
      during
      any period of twenty-four months (not including any period prior to the
      Effective Date of this Agreement), individuals who at the beginning of
      such period constitute the board of directors of the Company, and any new
      director (other than (A) a director nominated by a Person who has entered
      into an agreement with the Company to effect a transaction described in
      Sections (8)(b)(i), (ii) or (iv) hereof, (B) a director nominated by any
      Person (including the Company) who publicly announces an intention to take
      or to consider taking actions (including, but not limited to, an actual or
      threatened proxy contest) which if consummated would constitute a Change
      in Control or (C) a director nominated by any Person who is the Beneficial
      Owner, directly or indirectly, of securities of the Company representing
      25% or more of the combined voting power of the Company's securities)
      whose election by the board of directors of the Company or nomination for
      election by the Company's stockholders was approved in advance by a vote
      of at least two-thirds (2/3) of the directors then still in office who
      either were directors at the beginning of the period or whose election or
      nomination for election was previously so approved, cease for any reason
      to constitute at least a majority thereof;

       

 

20

 

	
      (iv) 
	
      the
      stockholders of the Company approve a plan of complete liquidation of the
      Company or an agreement for the sale or disposition by the Company of all
      or substantially all of the Company's assets; or

       

	
      (v) 
	
      the
      board of directors of the Company adopts a resolution to the effect that,
      for purposes of this Agreement, a Change in Control has
      occurred.

       

    (c)  "Compensation
Accrued at Termination." For
purposes of this Agreement, "Compensation Accrued at Termination" means the
following: 

 

	
      (i) 
	
      The
      unpaid portion of annual base salary at the rate payable, in accordance
      with Section 4(a) hereof, at the date of Executive's termination of
      employment, pro rated through such date of termination, payable in
      accordance with the Company's regular pay schedule;

       

	
      (ii) 
	
      All
      vested, nonforfeitable amounts owing or accrued at the date of Executive's
      termination of employment under any compensation and benefit plans,
      programs, and arrangements set forth or referred to in Sections 4(b) and
      5(a) and 5(b) hereof (including any earned and vested annual incentive
      compensation and long-term incentive award) in which Executive theretofore
      participated, payable in accordance with the terms and conditions of the
      plans, programs, and arrangements (and agreements and documents
      thereunder) pursuant to which such compensation and benefits were granted
      or accrued; and

       

	
      (iii) 
	
      Expenses
      and disbursements incurred by Executive prior to Executive's termination
      of employment, to be reimbursed to Executive, as authorized under Sections
      5(f), (g), (h) and (i), in accordance the Company's reimbursement policies
      as in effect at the date of such termination.

       

    (d)  "Disability." For
purposes of this Agreement, "Disability" shall have the meaning ascribed to it
by Section 409A of the Code and the regulations thereunder.

 

    (e)  "Good
Reason." For
purposes of this Agreement, "Good Reason" shall mean, without Executive's
express written consent, the occurrence of any of the following circumstances
unless, in the case of subsections (i), (iv), (vi) or (viii) hereof, such
circumstances are fully corrected prior to the date of termination specified in
the notice of termination given in respect thereof:

 

	
      (i) 
	
      the
      assignment to Executive of duties inconsistent with Executive's position
      and status as President and Chief Executive Officer, or an alteration,
      adverse to Executive, in Executive's position and status as President and
      Chief Executive Officer or in the nature of Executive's duties,
      responsibilities, and authorities or conditions of Executive's employment
      from those relating to Executive position and status as President and
      Chief Executive Officer (excluding inadvertent actions which are promptly
      remedied); except the foregoing shall not constitute Good Reason if
      occurring in connection with the termination of Executive's employment for
      Cause, Disability, Retirement, as a result of Executive's death, or as a
      result of action by or with the consent of Executive; for purposes of this
      Section 8(e), references to the Bank or the Company (and to the Board of
      the Bank or the Company and to the stockholders of the Company) refer to
      the ultimate parent company (and its board and stockholders) succeeding
      the Company (or the Mutual Holding Company) following an acquisition in
      which the corporate existence of the Company (or the Mutual Holding
      Company) continues, in accordance with Section 12(b);

       

 

21

 

	
      (ii) 
	
      (A)
      a reduction by the Bank in Executive's Base Salary, (B) the setting of
      Executive's annual target incentive opportunity or payment of earned
      annual incentive not in conformity with Section 4 hereof, (C) a change in
      compensation or benefits not in conformity with Section 5, or (D) a
      reduction, after a Change in Control, in perquisites from the level of
      such perquisites as in effect immediately prior to the Change in Control
      or as the same may have been increased from time to time after the Change
      in Control, except for across-the-board perquisite reductions similarly
      affecting all senior executives of the Bank and all senior executives of
      any Person in control of the Company;

       

	
      (iii) 
	
      the
      relocation of the principal place of Executive's employment to a site that
      is outside of a fifty mile radius of his principal place of employment
      prior to such relocation; for this purpose, required travel on the Bank's
      business will not constitute a relocation so long as the extent of such
      travel is substantially consistent with Executive's customary business
      travel obligations in periods prior to the Effective Date;

       

	
      (iv) 
	
      the
      failure by the Bank to pay to Executive any portion of Executive's
      compensation or to pay to Executive any portion of an installment of
      deferred compensation under any deferred compensation program of the Bank
      within seven days of the date such compensation is due;

       

	
      (v) 
	
      the
      failure by the Bank to continue in effect any material compensation or
      benefit plan in which Executive participated immediately prior to a Change
      in Control, unless an equitable arrangement (embodied in an ongoing
      substitute or alternative plan) has been made with respect to such plan,
      or the failure by the Bank to continue Executive's participation therein
      (or in such substitute or alternative plan) on a basis not materially less
      favorable, both in terms of the amounts of compensation or benefits
      provided and the level of Executive's participation relative to other
      participants, as existed at the time of the Change in
Control;

       

	
      (vi) 
	
      the
      failure of the Bank to obtain a satisfactory agreement from any successor
      to the Bank, the Company or the Mutual Holding Company to fully assume the
      Bank’s and the Company's obligations and to perform under this Agreement,
      as contemplated in Section 12(b) hereof, in a form reasonably acceptable
      to Executive; or

       

	
      (vii) 
	
      any
      other failure by the Bank or the Company to perform any material
      obligation under, or breach by the Bank or the Company of any material
      provision of, this Agreement;

       

provided,
however, that a forfeiture under Section 10(f), (g) or (h) shall not constitute
"Good Reason." 

 

    (f)  "Potential
Change in Control" For
purposes of this Agreement, a "Potential Change in Control" shall be deemed to
have occurred if, during the term of this Agreement:

22

 

	
      (i) 
	
      the
      Company enters into an agreement, the consummation of which would result
      in the occurrence of a Change in Control;

       

	
      (ii) 
	
      any
      Person (including the Company) publicly announces an intention to take or
      to consider taking actions which if consummated would constitute a Change
      in Control; or

       

	
      (iii) 
	
      the
      board of directors of the Bank adopts a resolution to the effect that, for
      purposes of this Agreement, a Potential Change in Control has
      occurred.

       

9.  Rabbi
Trust Obligation Upon Potential Change in Control; Excise Tax-Related
Provisions.

 

    (a)  Rabbi
Trust Funded Upon Potential Change in Control. In the
event of a Potential Change in Control or Change in Control, the Bank or the
Company shall, not later than 15 days thereafter, have established one or more
rabbi trusts and shall deposit therein cash, in an amount determined by the
actuary for the Bank’s qualified Retirement Plan on the basis of the interest
rate and mortality assumptions set forth in said qualified Retirement Plan,
which is sufficient to provide for full payment of all potential obligations of
the Bank and the Company that would arise assuming consummation of a Change in
Control, or has arisen in the case of an actual Change in Control, and a
subsequent termination of Executive's employment under Section 7(e) or (f). Such
rabbi trust(s) shall be irrevocable and shall provide that neither the Bank nor
the Company may, directly or indirectly, use or recover any assets of the
trust(s) until such time as all obligations which potentially could arise
hereunder have been settled and paid in full, subject only to the claims of
creditors of the Bank and the Company in the event of insolvency or bankruptcy
of the Bank or the Company; provided, however, that if no Change in Control has
occurred within two years after such Potential Change in Control, such rabbi
trust(s) shall at the end of such two-year period become revocable and may
thereafter be revoked by the Bank.

 

    (b)  Gross-up
If Excise Tax Would Apply. In the
event Executive becomes entitled to any amounts or benefits payable in
connection with a Change in Control or other change in control (whether or not
such amounts are payable pursuant to this Agreement) (the "Severance Payments"),
if any of such Severance Payments are subject to the tax (the "Excise Tax")
imposed by Section 4999 of the Internal Revenue Code (or any similar federal,
state or local tax that may hereafter be imposed) (the "Code"), the Bank shall
pay to Executive at the time specified in Section 9(b)(iii) hereof an additional
amount (the "Gross-Up Payment") such that the net amount retained by Executive,
after deduction of any Excise Tax on the Total Payments (as hereinafter defined)
and any federal, state and local income tax and Excise Tax upon the payment
provided for by Section 9(b)(i), shall be equal to the Total Payments.

 

	
      (i) 
	
      For
      purposes of determining whether any of the Severance Payments will be
      subject to the Excise Tax and the amount of such Excise Tax:

       

 

	 	
      (A)    any
      other payments or benefits received or to be received by Executive in
      connection with a Change in Control or Executive's termination of
      employment (whether pursuant to the terms of this Agreement or any other
      plan, arrangement or agreement with the Bank, any Person whose actions
      result in a Change in Control or any Person affiliated with the Bank or
      such Person) (which, together with the Severance Payments, constitute the
      "Total Payments") shall be treated as "parachute payments" within the
      meaning of Section 280G(b)(2) of the Code, and all "excess parachute
      payments" within the meaning of Section 280G(b)(1) of the Code shall be
      treated as subject to the Excise Tax, unless in the opinion of
      nationally-recognized tax counsel selected by Executive such other
      payments or benefits (in whole or in part) do not constitute parachute
      payments, or such excess parachute payments (in whole or in part)
      represent reasonable compensation for services actually rendered within
      the meaning of Section 280G(b)(4) of the Code in excess of the base amount
      within the meaning of Section 280G(b)(3) of the Code, or are otherwise not
      subject to the Excise Tax;

 

23

 

	 	
      (B)    the
      amount of the Total Payments which shall be treated as subject to the
      Excise Tax shall be equal to the lesser of (x) the total amount of the
      Total Payments and (y) the amount of excess parachute payments within the
      meaning of Section 280G(b)(1) of the Code (after applying Section
      9(b)(i)(A) hereof); and

       

	 	
      (C)    the
      value of any non-cash benefits or any deferred payments or benefit shall
      be determined by a nationally-recognized accounting firm selected by
      Executive in accordance with the principles of Sections 280G(d)(3) and (4)
      of the Code.

       

 

	
      (ii) 
	
      For
      purposes of determining the amount of the Gross-Up Payment, Executive
      shall be deemed to pay federal income taxes at the highest marginal rate
      of federal income taxation in the calendar year in which the Gross-Up
      Payment is to be made and state and local income taxes at the highest
      marginal rate of taxation in the state and locality of Executive's
      residence on the Date of Termination, net of the maximum reduction in
      federal income taxes which could be obtained from deduction of such state
      and local taxes. In the event that the Excise Tax is subsequently
      determined to be less than the amount taken into account hereunder at the
      time of termination of Executive's employment, Executive shall repay to
      the Bank within ten days after the time that the amount of such reduction
      in Excise Tax is finally determined the portion of the Gross-Up Payment
      attributable to such reduction (plus the portion of the Gross-Up Payment
      attributable to the Excise Tax and federal and state and local income tax
      imposed on the Gross-Up Payment being repaid by Executive if such
      repayment results in a reduction in Excise Tax and/or federal and state
      and local income tax deduction) plus interest on the amount of such
      repayment at the rate provided in Section 1274(b)(2)(B) of the Code. In
      the event that the Excise Tax is determined to exceed the amount taken
      into account hereunder at the time of the termination of Executive's
      employment (including by reason of any payment the existence or amount of
      which cannot be determined at the time of the Gross-Up Payment), the Bank
      shall make an additional gross-up payment in respect of such excess within
      ten days after the time that the amount of such excess is finally
      determined.

       

	
      (iii) 
	
      The
      payments provided for in this Section 9(b) shall be made not later than
      the fifteenth day following the date of Executive's termination of
      employment; provided, however, that if the amount of such payments cannot
      be finally determined on or before such day, the Bank shall pay to
      Executive on such day an estimate, as determined in good faith by the
      Bank, of the minimum amount of such payments and shall pay the remainder
      of such payments (together with interest at the rate provided in Section
      1274(b)(2)(B) of the Code) as soon as the amount thereof can be determined
      but in no event later than the thirtieth day after the date of Executive's
      termination of employment. In the event that the amount of the estimated
      payments exceeds the amount subsequently determined to have been due, such
      excess shall be payable by Executive on the fifteenth day after the demand
      by the Bank.

       

 

24

 

	
      (iv) 
	
      All
      determinations under this Section 9(b) shall be made at the expense of the
      Bank by a nationally recognized public accounting firm selected by
      Executive, and such determination shall be binding upon Executive and the
      Bank.

       

	
      (v) 
	
      Executive
      hereby agrees with the Bank and the Company and any successor thereto to
      in good faith consider and take steps commonly used to minimize or
      eliminate any tax liability or costs that would otherwise be created by
      the tax indemnification provisions set forth in this Section 9(b) if
      requested to do so by the Company or the Bank or any successor thereto;
      provided, however, that the foregoing language shall neither require
      Executive to take or not take any specific action in furtherance thereof
      nor contravene, limit or remove any right or privilege provided thereto
      under this Agreement.

       

10.  Non-Competition
and Non-Disclosure; Executive Cooperation; Non-Disparagement; Certain
Forfeitures.

 

    (a)  Non-Competition. In
consideration for the compensation and benefits provided under this Agreement,
including without limitation, the compensation and benefits provided under
Sections 7(e) and (f), without the consent in writing of the Board, Executive
will not, at any time during the Term and for a period of two years following
termination of Executive's employment for any reason, acting alone or in
conjunction with others, directly or indirectly (i) engage (either as owner,
investor, partner, stockholder, employer, employee, consultant, advisor, or
director) in any business of any savings bank, savings and loan association,
savings and loan holding company, bank, bank holding company, or other
institution engaged in the business of accepting deposits or making loans, or
any direct or indirect subsidiary or affiliate of any such entity, that conducts
business in any county in which the Company or the Bank maintains an office as
of Executive’s date of termination or in any county in which the Company or the
Bank had plans to open an office within six months after Executive’s date of
termination ; (ii) induce any customers of the Bank or any of its affiliates
with whom Executive has had contacts or relationships, directly or indirectly,
during and within the scope of his employment with the Bank, to curtail or
cancel their business with the Bank or any such affiliate; (iii) induce, or
attempt to influence, any employee of the Bank or any of its affiliates to
terminate employment; or (iv) solicit, hire or retain as an employee or
independent contractor, or assist any third party in the solicitation, hire, or
retention as an employee or independent contractor, any person who during the
previous twelve months was an employee of the Bank or any affiliate; provided,
however, that activities engaged in by or on behalf of the Bank are not
restricted by this covenant. The provisions of subparagraphs (i), (ii), (iii),
and (iv) above are separate and distinct commitments independent of each of the
other subparagraphs. It is agreed that the ownership of not more than one
percent of the equity securities of any company having securities listed on an
exchange or regularly traded in the over-the-counter market shall not, of
itself, be deemed inconsistent with clause (i) of this Section
10(a).

 

    (b)  Non-Disclosure;
Ownership of Work.
Executive shall not, at any time during the Term and thereafter (including
following Executive's termination of employment for any reason), disclose, use,
transfer, or sell, except in the course of employment with or other service to
the Bank or the Company, any proprietary information, secrets, organizational or
employee information, or other confidential information belonging or relating to
the Bank or the Company and its affiliates and customers so long as such
information has not otherwise been disclosed or is not otherwise in the public
domain, except as required by law or pursuant to legal process. In addition,
upon termination of employment for any reason, Executive will return to the
Company or its affiliates all documents and other media containing information
belonging or relating to the Bank and the Company or its affiliates.

 

    (c)  Cooperation
With Regard to Litigation.
Executive agrees to cooperate with the Bank and the Company, during the Term and
thereafter (including following Executive's termination of employment for any
reason), by making himself available to testify on behalf of the Bank or the
Company or any subsidiary or affiliate of the Bank or the Company, in any
action, suit, or proceeding, whether civil, criminal, administrative, or
investigative, and to assist the Bank and the Company, or any subsidiary or
affiliate of the Company, in any such action, suit, or proceeding, by providing
information and meeting and consulting with the Board or its representatives or
counsel, or representatives or counsel to the Bank or the Company, or any
subsidiary or affiliate of the Company, as requested. The Bank agrees to
reimburse the Executive, on an after tax basis, for all expenses actually
incurred in connection with his provision of testimony or
assistance.

25

    (d)  Non-Disparagement.
Executive shall not, at any time during the Term and thereafter, make statements
or representations, or otherwise communicate, directly or indirectly, in
writing, orally, or otherwise, or take any action which may, directly or
indirectly, disparage the Bank or the Company or any of its subsidiaries or
affiliates or their respective officers, directors, employees, advisors,
businesses or reputations. Notwithstanding the foregoing, nothing in this
Agreement shall preclude Executive from making truthful statements that are
required by applicable law, regulation or legal process.

 

    (e)  Release
of Employment Claims.
Executive agrees, as a condition to receipt of any termination payments and
benefits provided for in Sections 6 and 7 herein (other than Compensation
Accrued at Termination), that he will execute a general release agreement, in
substantially the form set forth in Attachment A to this Agreement, releasing
any and all claims arising out of Executive's employment other than enforcement
of this Agreement and rights to indemnification under any agreement, law, Bank
or Company organizational document or policy, or otherwise.

 

    (f)  Forfeiture
of Outstanding Options. The
provisions of Sections 6 and 7 notwithstanding, if Executive willfully and
materially fails to substantially comply with any restrictive covenant under
this Section 10 or willfully and materially fails to substantially comply with
any material obligation under this Agreement, all options to purchase common
stock granted by the Company and then held by Executive or a transferee of
Executive shall be immediately forfeited and thereupon such options shall be
cancelled. Notwithstanding the foregoing, Executive shall not forfeit any option
unless and until there shall have been delivered to him, within six months after
the Board (i) had knowledge of conduct or an event allegedly constituting
grounds for such forfeiture and (ii) had reason to believe that such conduct or
event could be grounds for such forfeiture, a copy of a resolution duly adopted
by a majority affirmative vote of the membership of the Board (excluding
Executive) at a meeting of the Board called and held for such purpose (after
giving Executive reasonable notice specifying the nature of the grounds for such
forfeiture and not less than 30 days to correct the acts or omissions complained
of, if correctable, and affording Executive the opportunity, together with his
counsel, to be heard before the Board) finding that, in the good faith opinion
of the Board, Executive has engaged and continues to engage in conduct set forth
in this Section 10(f) which constitutes grounds for forfeiture of Executive's
options; provided, however, that if any option is exercised after delivery of
such notice and the Board subsequently makes the determination described in this
sentence, Executive shall be required to pay to the Company an amount equal to
the difference between the aggregate value of the shares acquired upon such
exercise at the date of the Board determination and the aggregate exercise price
paid by Executive. Any such forfeiture shall apply to such options
notwithstanding any term or provision of any option agreement. In addition,
options granted to Executive on or after the Effective Date, and gains resulting
from the exercise of such options, shall be subject to forfeiture in accordance
with the Company's standard policies relating to such forfeitures and clawbacks,
as such policies are in effect at the time of grant of such
options.

 

    (g)  Forfeiture
of Certain Bonuses and Profits. If the
Company is required to prepare an accounting restatement due to the material
noncompliance of the Company, as a result of misconduct, with any financial
reporting requirement under the securities laws, and if Executive, knowingly or
through gross negligence, caused or failed to prevent such misconduct, Executive
shall reimburse the Bank for (i) any bonus or other incentive based or
equity-based compensation received by Executive during the 12-month period
following the first public issuance or filing with the Securities and Exchange
Commission (whichever first occurs) of the financial document embodying such
financial reporting requirement; and (ii) any profits realized from the sale of
securities of the Company during that 12-month period.

 

    (h)  Forfeiture
Due to Regulatory Restrictions.
Anything in this Agreement or the SERPS to the contrary notwithstanding, (i) any
payments made pursuant to this Agreement or the SERPS shall be subject to and
conditioned upon compliance with 12 U.S.C. §1828(k) and any regulations
promulgated thereunder; and (ii) payments contemplated to be made by the Bank
pursuant to this Agreement or the SERPS shall not be immediately payable to the
extent such payments are barred or prohibited by an action or order issued by
the Connecticut Banking Commissioner or the Federal Deposit Insurance
Corporation.

26

    (i)  Survival. The
provisions of this Section 10 shall survive the termination of the Term and any
termination or expiration of this Agreement.

 

11.  Governing
Law; Disputes.

 

    (a)  Governing
Law. This
Agreement and the rights and obligations of the Company, the Bank and Executive
are governed by and are to be construed, administered, and enforced in
accordance with the laws of the State of Connecticut, without regard to
conflicts of law principles. If under the governing law, any portion of this
Agreement is at any time deemed to be in conflict with any applicable statute,
rule, regulation, ordinance, or other principle of law, such portion shall be
deemed to be modified or altered to the extent necessary to conform thereto or,
if that is not possible, to be omitted therefrom . The invalidity of any such
portion shall not affect the force, effect, and validity of the remaining
portion thereof. If any court determines that any provision of Section 10 of
this Agreement is unenforceable because of the duration or geographic scope of
such provision, it is the parties' intent that such court shall have the power
to modify the duration or geographic scope of such provision, as the case may
be, to the extent necessary to render the provision enforceable and, in its
modified form, such provision shall be enforced.

 

    (b)  Reimbursement
of Expenses in Enforcing Rights. Upon
submission of invoices, the Bank shall promptly pay or reimburse all reasonable
costs and expenses (including fees and disbursements of counsel and pension
experts) incurred by Executive or Executive’s surviving spouse in seeking to
interpret this Agreement or enforce rights pursuant to this Agreement or in any
proceeding in connection therewith brought by Executive or Executive’s surviving
spouse, whether or not Executive or Executive’s surviving spouse is ultimately
successful in enforcing such rights or in such proceeding; provided, however,
that no reimbursement shall be owed with respect to expenses relating to any
unsuccessful assertion of rights or proceeding if and to the extent that such
assertion or proceeding was initiated or maintained in bad faith or was
frivolous, as determined in accordance with Section 11(c) or a court having
jurisdiction over the matter, in which case any amounts previously paid by the
Bank shall be promptly repaid. 

 

    (c)  Dispute
Resolution 

 

	
      (i)

       
	
      Negotiation.
      The Bank and the Company (collectively, the “Employer”) and Executive
      shall attempt in good faith to resolve any dispute arising out of or
      relating to this Agreement promptly by negotiation between the Chairman of
      the Board of Directors of the Bank and Executive. Any party may give the
      other party written notice of any dispute in accordance with the notice
      procedures set forth in Section 12(d). Within 15 days after delivery of
      the notice, the receiving party shall submit to the other, in accordance
      with the notice procedures set forth in Section 12(d), a written response.
      The notice and response shall include a statement of that party’s position
      and summary of arguments supporting that position. Within 30 days after
      delivery of the initial notice, the parties shall meet at a mutually
      acceptable time and place, and thereafter as often as they reasonably deem
      necessary, to attempt to resolve the dispute. All negotiations pursuant to
      this clause (i) are confidential and shall be treated as compromise and
      settlement negotiations for purposes of applicable rules of
      evidence.

       

	
      (ii)

       
	
       Mediation.
      If the dispute has not been resolved by negotiation as provided herein
      within 45 days after delivery of the initial notice of negotiation, or if
      the parties failed to meet within 30 days after delivery, the parties
      shall endeavor to settle the dispute by mediation under the CPR Mediation
      Procedure then currently in effect; provided, however, that if one party
      fails to participate in the negotiation as provided herein, the other
      party can initiate mediation prior to the expiration of the 45 days.
      Unless otherwise agreed, the parties will select a mediator from the CPR
      Panels of Distinguished Neutrals.

       

 

27

 

	
      (iii)

       
	
      Arbitration.
      Any dispute arising under or in connection with this Agreement which has
      not been resolved by mediation as provided herein within 45 days after
      initiation of the mediation procedure, shall be finally resolved by
      arbitration in accordance with the CPR Rules for Non-Administered
      Arbitration then currently in effect, by three independent and impartial
      arbitrators, of whom each party shall designate one; provided, however,
      that if one party fails to participate in either the negotiation or
      mediation as agreed herein, the other party can commence arbitration prior
      to the expiration of the time periods set forth above. The arbitration
      shall be governed by the Federal Arbitration Act, 9 U.S.C. §§1-16, and
      judgment upon the award rendered by the arbitrators may be entered by any
      court having jurisdiction thereof. The place of arbitration shall be
      Hartford, Connecticut. For purposes of entering any judgment upon an award
      rendered by the arbitrators, the Company, the Bank and Executive hereby
      consent to the jurisdiction of any or all of the following courts: (i) the
      United States District Court for the District of Connecticut, (ii) any of
      the courts of the State of Connecticut, or (iii) any other court having
      jurisdiction. The Company, the Bank and Executive hereby agree that a
      judgment upon an award rendered by the arbitrators may be enforced in
      other jurisdictions by suit on the judgment or in any other manner
      provided by law. Subject to Section 11(b) of this Agreement, the Bank
      shall bear all costs and expenses arising in connection with any
      arbitration proceeding pursuant to this Section 11(c). Notwithstanding any
      provision in this Section 11(c), Executive shall be entitled to seek
      specific performance of Executive's right to be paid during the pendency
      of any dispute or controversy arising under or in connection with this
      Agreement.

       

    (d)  Interest
on Unpaid Amounts. Any
amount which has become payable pursuant to the terms of this Agreement or any
decision by arbitrators or judgment by a court of law pursuant to this Section
11 but which has not been timely paid shall bear interest at the prime rate in
effect at the time such amount first becomes payable, as quoted by the
Bank.

 

12.  Miscellaneous.

 

    (a)  Integration. This
Agreement cancels and supersedes any and all prior employment agreements and
understandings between the parties hereto with respect to the employment of
Executive by the Bank, any parent or predecessor company, and the Company's
subsidiaries during the Term, except for contracts relating to compensation
under executive compensation and employee benefit plans of the Bank. This
Agreement constitutes the entire agreement among the parties with respect to the
matters herein provided, and no modification or waiver of any provision hereof
shall be effective unless in writing and signed by the parties hereto. Executive
shall not be entitled to any payment or benefit under this Agreement which
duplicates a payment or benefit received or receivable by Executive under any
prior agreements and understandings or under any benefit or compensation plan of
the Bank which are in effect.

 

    (b)  Successors;
Transferability. The
Bank and the Company shall require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of the Bank or the Company to expressly assume and agree
to perform this Agreement in the same manner and to the same extent that the
Bank and the Company would be required to perform it if no such succession had
taken place. 

 

As used
in this Agreement, “Bank “and "Company" shall mean the Bank and the Company
respectively as hereinbefore defined and any successor to its or their business
and/or assets as aforesaid which assumes and agrees to perform this Agreement by
operation of law, or otherwise and, in the case of an acquisition of the Bank or
the Company in which the corporate existence of the Bank or the Company, as the
case may be, continues, the ultimate parent company following such acquisition.
Subject to the foregoing, the Bank and the Company may transfer and assign this
Agreement and the Bank’s and the Company's rights and obligations hereunder.
Neither this Agreement 

28

nor the
rights or obligations hereunder of the parties hereto shall be transferable or
assignable by Executive, except in accordance with the laws of descent and
distribution or as specified in Section 12(c).

 

    (c)  Beneficiaries.
Executive shall be entitled to designate (and change, to the extent permitted
under applicable law) a beneficiary or beneficiaries to receive any compensation
or benefits provided hereunder following Executive's death.

 

    (d)  Notices.
Whenever under this Agreement it becomes necessary to give notice, such notice
shall be in writing, signed by the party or parties giving or making the same,
and shall be served on the person or persons for whom it is intended or who
should be advised or notified, by Federal Express or other similar overnight
service or by certified or registered mail, return receipt requested, postage
prepaid and addressed to such party at the address set forth below or at such
other address as may be designated by such party by like notice:

 

	 	
      If
      to the Bank or the Company:

       

	 	
      ROCKVILLE
      BANK

	 	
      1645
      Ellington Road

	 	
      South
      Windsor, CT 06074

	 	
      Att:
      Chairman, Human Resources Committee

	 	 
	 	
      If
      to Executive:

       

	 	
      William
      J. McGurk

	 	
      c/o
      Ira Goldman, Esq.

	 	
      Shipman
      & Goodwin LLP

	 	
      One
      Constitution Plaza

	 	
      Hartford,
      CT 06103-1919

       

If the
parties by mutual agreement supply each other with telecopier numbers for the
purposes of providing notice by facsimile, such notice shall also be proper
notice under this Agreement. In the case of Federal Express or other similar
overnight service, such notice or advice shall be effective when sent, and, in
the cases of certified or registered mail, shall be effective two days after
deposit into the mails by delivery to the U.S. Post Office.

 

    (e)  Reformation. The
invalidity of any portion of this Agreement shall not be deemed to render the
remainder of this Agreement invalid.

 

    (f)  Headings. The
headings of this Agreement are for convenience of reference only and do not
constitute a part hereof.

 

    (g)  No
General Waivers. The
failure of any party at any time to require performance by any other party of
any provision hereof or to resort to any remedy provided herein or at law or in
equity shall in no way affect the right of such party to require such
performance or to resort to such remedy at any time thereafter, nor shall the
waiver by any party of a breach of any of the provisions hereof be deemed to be
a waiver of any subsequent breach of such provisions. No such waiver shall be
effective unless in writing and signed by the party against whom such waiver is
sought to be enforced. 

 

    (h)  No
Obligation To Mitigate.
Executive shall not be required to seek other employment or otherwise to
mitigate Executive's damages upon any termination of employment, and any
compensation or benefits received from any other employment of Executive shall
not mitigate or reduce the obligations of the Bank and the Company or the rights
of Executive hereunder, except that, to the extent Executive receives from a
subsequent employer health or other insurance benefits that are similar to the
benefits referred to in Section 5(b) 

29

hereof,
any such benefits to be provided by the Bank to Executive following the Term
shall be correspondingly reduced.

 

    (i)  Offsets;
Withholding. The
amounts required to be paid by the Bank to Executive pursuant to this Agreement
shall not be subject to offset other than with respect to any amounts that are
owed to the Bank by Executive due to his receipt of funds as a result of his
fraudulent activity. The foregoing and other provisions of this Agreement
notwithstanding, all payments to be made to Executive under this Agreement,
including under Sections 6 and 7, or otherwise by the Bank, will be subject to
withholding to satisfy required withholding taxes and other required
deductions.

 

    (j)  Successors
and Assigns. This
Agreement shall be binding upon and shall inure to the benefit of Executive, his
heirs, executors, administrators and beneficiaries, and shall be binding upon
and inure to the benefit of the Bank and the Company and their successors and
assigns.

 

    (k)  Counterparts. This
Agreement may be executed in counterparts, each of which shall be deemed to be
an original but all of which together will constitute one and the same
instrument.

 

13.  Indemnification.

 

All
rights to indemnification by the Bank or the Company now existing in favor of
Executive as provided in the Bank’s and the Company's Certificate of
Incorporation or By-laws or pursuant to other agreements in effect on or
immediately prior to the Effective Date shall continue in full force and effect
from the Effective Date (including all periods after the expiration of the
Term), and the Bank and the Company shall also advance expenses for which
indemnification may be ultimately claimed as such expenses are incurred to the
fullest extent permitted under applicable law, subject to any requirement that
Executive provide an undertaking to repay such advances if it is ultimately
determined that Executive is not entitled to indemnification; provided, however,
that any determination required to be made with respect to whether Executive's
conduct complies with the standards required to be met as a condition of
indemnification or advancement of expenses under applicable law and the Bank’s
or the Company's Certificate of Incorporation, By-laws, or other agreement shall
be made by independent counsel mutually acceptable to Executive and the Company
(except to the extent otherwise required by law). After the date hereof, the
Bank and the Company shall not amend its Certificate of Incorporation or By-laws
or any agreement in any manner which adversely affects the rights of Executive
to indemnification thereunder. Any provision contained herein notwithstanding,
this Agreement shall not limit or reduce any rights of Executive to
indemnification pursuant to applicable law. In addition, the Company will
maintain directors' and officers' liability insurance in effect and covering
acts and omissions of Executive during the Term and for a period of six years
thereafter on terms substantially no less favorable than those in effect on the
Effective Date.

30

IN
WITNESS WHEREOF, Executive has hereunto set his hand and the Bank and the
Company have each caused this instrument to be duly executed as of the Effective
Date.

 

	 	
      ROCKVILLE
      BANK

	 	 
	 	
      By:       
      /s/ Kristen A. Johnson

	 	
      Name:  
      Kristen A. Johnson

	 	
      Title:    
      Senior Vice President, HR

	
       
	 
	 	
      ROCKVILLE
      FINANCIAL, INC. 

	 	
      By:       
      /s/ Joseph F. Jeamel

	 	
      Name:  
      Joseph F. Jeamel

	 	
      Title:    
      Executive Vice President

	 	 
	 	 
	 	/s/
      William J. McGurk 
	 	
      William
      J. McGurk

 

31

ATTACHMENT
A

 

RELEASE

 

We advise
you to consult an attorney before you sign this Release. You have until the date
which is seven (7) days after the Release is signed and returned to Rockville
Bank to change your mind and revoke your Release. Your Release shall not become
effective or enforceable until after that date.

 

In
consideration for the benefits provided under your Employment Agreement with
Rockville Bank (the “Employment Agreement”), and more specifically enumerated in
Exhibit 1 hereto, by your signature below, you, for yourself and on behalf of
your heirs, executors, agents, representatives, successors and assigns, hereby
release and forever discharge the Rockville Financial, Inc., its past and
present parent corporations, subsidiaries, divisions, subdivisions, affiliates
and related companies (collectively, the “Company”) and the Company’s past,
present and future agents, directors, officers, employees, representatives,
successors and assigns (hereinafter “those associated with the Company”) with
respect to any and all claims, demands, actions and liabilities, whether in law
or equity, which you may have against the Company or those associated with the
Company of whatever kind, including but not limited to those arising out of your
employment with the Company or the termination of that employment. You agree
that this release covers, but is not limited to, claims arising under the Age
Discrimination in Employment Act of 1967, 29 U.S.C. § 621 et seq., Title VII of
the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq., the Americans with
Disabilities Act of 1990, 42 U.S.C. § 12101 et seq., the Fair Labor Standards
Act, 29 U.S.C. § 201 et seq., the Employee Retirement Income Security Act of
1974, 29 U.S.C. § 1001 et seq., the Connecticut Fair Employment Practices Act,
C.G.S. § 46a-51 et seq., and any other local, state or federal law, regulation
or order dealing with discrimination in employment on the basis of sex, race,
color, national origin, veteran status, marital status, religion, disability,
handicap, or age. You also agree that this release includes claims based on
wrongful termination of employment, breach of contract (express or implied),
tort, or claims otherwise related to your employment or termination of
employment with the Company and any claim for attorneys’ fees, expenses or costs
of litigation. 

 

This
Release covers all claims based on any facts or events, whether known or unknown
by you, that occurred on or before the date of this Release. Except to enforce
this Release, you agree that you will never commence, prosecute, or cause to be
commenced or prosecuted any lawsuit or proceeding of any kind against the
Company or those associated with the Company in any forum and agree to withdraw
with prejudice all complaints or charges, if any, that you have filed against
the Company or those associated with the Company.

 

Anything
in this Release to the contrary notwithstanding, this Release does not include a
release of: (i) your rights under the Employment Agreement or your right to
enforce the Employment Agreement; (ii) any rights you may have to
indemnification under any agreement, law, Company organizational document or
policy, or otherwise; (iii) any rights you may have to benefits under the
Company’s benefit plans; or (iii) your right to enforce this Release.

 

By
signing this Release, you further agree as follows:

 

	
      i.

       
	
      You
      have read this Release carefully and fully understand its
      terms;

       

	
      ii.

       
	
      You
      have had at least twenty-one (21) days to consider the terms of the
      Release;

       

	
      iii.

       
	
      You
      have seven (7) days from the date you sign this Release to revoke it by
      written notification to the Company. After this seven (7) day period, this
      Release is final and binding and may not be revoked;

       

	
      iv.

       
	
      You
      have been advised to seek legal counsel and have had an opportunity to do
      so;

       

	
      v.

       
	
      You
      would not otherwise be entitled to the benefits provided under your
      Employment Agreement had you not agreed to execute this Release;
      and

       

	
      vi.

       
	
      Your
      agreement to the terms set forth above is voluntary.

       

 

	
      Name:
	 
	 	 
	
      Signature:
	
      Date:

	
      Received
      by:
	
      Date:

2Exhibit 10.4.1 Employment Agreement Jeamel

Exhibit
10.4.1

ROCKVILLE
BANK

Employment
Agreement for Joseph F. Jeamel, Jr.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ROCKVILLE
BANK

Employment
Agreement for Joseph F. Jeamel, Jr. 

 

	
      1.
	Employment	
      1

	
      2.
	Term	
      1

	
      3.
	Offices
      and Duties	
      2

	
       
	
      (a) 
	
      Generally
	
      2

	
       
	
      (b) 
	
      Place
      of Employment
	
      2

	
      4.
	
      Salary
      and Annual Incentive Compensation
	
      2

	
       
	
      (a) 
	
      Base
      Salary
	
      2

	
       
	
      (b) 
	
      Annual
      Incentive Compensation
	
      2

	
       
	
      (b) 
	
      Annual
      Bonus
	
      2

	
      5.
	Long-Term
      Compensation, Including Stock Options, Benefits, Deferred Compensation,
      and Expense Reimbursement	
      3

	
       
	
      (a) 
	
      Executive
      Compensation Plans
	
      3

	
       
	
      (b) 
	
      Employee
      and Executive Benefit Plans
	
      3

	
       
	
      (c) 
	
      Acceleration
      of Awards Upon a Change in Control
	
      3

	
       
	
      (d) 
	
      Deferral
      of Compensation
	
      3

	
       
	
      (e) 
	
      Company
      Registration Obligations
	
      4

	
       
	
      (f) 
	
      Reimbursement
      of Expenses
	
      4

	
      6.
	Termination
      Due to Retirement, Death, or Disability	
      4

	
       
	
      (a) 
	
      Retirement
	
      4

	
       
	
      (b) 
	
      Death
	
      5

	
       
	
      (c) 
	
      Disability
	
      6

	
       
	
      (d) 
	
      Other
      Terms of Payment Following Retirement, Death, or
Disability
	
      7

	
      7.
	Termination
      of Employment For Reasons Other Than Retirement, Death or
    Disability	
      7

	
       
	
      (a) 
	
      Termination
      by the Bank for Cause
	
      7

	
       
	
      (b) 
	
      Termination
      by Executive Other Than For Good Reason
	
      8

	
       
	
      (c) 
	
      Termination
      by the Bank Without Cause Prior to or More than Two Years After a Change
      in Control
	
      8

	
       
	
      (d) 
	
      Termination
      by Executive for Good Reason Prior to or More than Two Years After a
      Change in Control
	
      10 

	
       
	
      (e) 
	
      Termination
      by the Bank Without Cause Within Two Years After a Change in
      Control
	
      12

	
       
	
      (f) 
	
      Termination
      by Executive for Good Reason Within Two Years After a Change in
      Control
	
      14

	
       
	
      (g) 
	
      Other
      Terms Relating to Certain Terminations of Employment
	
      16

	
      8.
	Definitions
      Relating to Termination Events	
      16

 

i

 

	
       
	
      (a) 
	
      “Cause
	
      16

	
       
	
      (b) 
	
      “Change
      in Control
	
      16

	
       
	
      (c) 
	
      “Compensation
      Accrued at Termination
	
      17

	
       
	
      (d) 
	
      “Disability
	
      17

	
       
	
      (d) 
	
      “Good
      Reason
	
      17

	
       
	
      (f) 
	
      “Potential
      Change in Control
	
      19

	
      9.
	Rabbi
      Trust Obligation Upon Potential Change in Control; Excise Tax-Related
      Provisions	
      19

	
       
	
      (a) 
	
      Rabbi
      Trust Funded Upon Potential Change in Control
	
      19

	
       
	
      (b) 
	
      Gross-up
      If Excise Tax Would Apply
	
      19

	
      10.
	Non-Competition
      and Non-Disclosure; Executive Cooperation; Non-Disparagement; Certain
      Forfeitures	
      20

	
       
	
      (a) 
	
      Non-Competition
	
      21

	
       
	
      (b) 
	
      Non-Disclosure;
      Ownership of Work
	
      21

	
       
	
      (c) 
	
      Cooperation
      With Regard to Litigation
	
      21

	
       
	
      (d) 
	
      Non-Disparagement
	
      21

	
       
	
      (e) 
	
      Release
      of Employment Claims
	
      21

	
       
	
      (f) 
	
      Forfeiture
      of Outstanding Options
	
      22

	
       
	
      (g) 
	
      Forfeiture
      of Certain Bonuses and Profits
	
      22

	
       
	
      (h) 
	
      Forfeiture
      Due to Regulatory Restrictions
	
      22

	
       
	
      (i)
	
      Survival
	
      22

	
      11.
	
      Governing
      Law; Disputes
	
      22

	
       
	
      (a) 
	
      Governing
      Law
	
      22

	
       
	
      (b) 
	
      Reimbursement
      of Expenses in Enforcing Rights
	
      23

	
       
	
      (c) 
	
      Dispute
      Resolution
	
      23

	
       
	
      (d) 
	
      Interest
      on Unpaid Amounts
	
      24

	
      12.
	Miscellaneous	
      24

	
       
	
      (a) 
	
      Integration
	
      24

	
       
	
      (b) 
	
      Successors;
      Transferability
	
      24

	
       
	
      (c) 
	
      Beneficiaries
	
      24

	
       
	
      (d) 
	
      Notices
	
      24

	
       
	
      (e) 
	
      Reformation
	
      25

	
       
	
      (f) 
	
      Headings
	
      25

	
       
	
      (g) 
	
      No
      General Waivers
	
      25

	
       
	
      (h) 
	
      No
      Obligation To Mitigate
	
      25

	
       
	
      (i) 
	
      Offsets;
      Withholding
	
      25

	
       
	
      (j) 
	
      Successors
      and Assigns
	
      25

	
       
	
      (k) 
	
      Counterparts
	
      25

 

ii

 

	
      13.
	Indemnification	
      25

	
      Attachment
      A 
	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

iii

ROCKVILLE
BANK

Employment
Agreement for Joseph F. Jeamel, Jr.

 

THIS
EMPLOYMENT AGREEMENT (the “Agreement”) by and among ROCKVILLE FINANCIAL, INC., a
Connecticut corporation (the “Company”), ROCKVILLE BANK, a Connecticut savings
bank and a wholly-owned subsidiary of the Company (the “Bank”), and Joseph F.
Jeamel, Jr. (“Executive”) shall become effective as of the consummation of the
reorganization and the minority stock issuance as contemplated in the Plan of
Reorganization and Minority Stock Issuance adopted by the Boards of Directors of
the Bank and Charter Oak Community Bank Corp. (the “Effective Date”).

W I T N E
S S E T H

WHEREAS,
the Bank has become a wholly-owned subsidiary of the Company; and

WHEREAS,
Executive is currently employed as Executive Vice President of the Bank;
and

WHEREAS,
the Company and the Bank desire to ensure that the Company and the Bank are
assured of the continued availability of Executive’s services as provided in
this Agreement; and

WHEREAS,
Executive is willing to serve the Company and the Bank on the terms and
conditions hereinafter set forth.

NOW,
THEREFORE, in consideration of the foregoing, the mutual covenants contained
herein, and other good and valuable consideration the receipt and adequacy of
which the Employer and Executive each hereby acknowledge, the Employer and
Executive hereby agree as follows:

1. Employment.

The Bank
hereby agrees to employ Executive as its Executive Vice President (with the
principal executive duties set forth below in Section 3), and Executive hereby
agrees to accept such employment and serve in such capacities, during the Term
as defined in Section 2 (subject to Section 7(c) and 7(e)) and upon the terms
and conditions set forth in this Agreement. 

2. Term.

The term
of employment of Executive under this Agreement (the "Term") shall be the period
commencing on the Effective Date and ending on December 31, 2006 and any period
of extension thereof in accordance with this Section 2, except that the Term
will end at a date, prior to the end of such period or extension thereof,
specified in Section 6 or 7 in the event of termination of Executive's
employment. The Term, if not previously ended, shall be extended by one
additional year (added to the end of the Term) on December 31, 2006 (extending
the Term to December 31, 2007) upon written agreement of the parties. If either
party shall desire to so extend the Term, such party shall serve written notice
in accordance with Section 12(d) upon the other party on or before June 30, 2006
requesting an extension of the Term to December 31, 2007. The parties agree to
negotiate in good faith any such requested extension but neither party shall be
obligated to agree to so extend the Term. Any such agreement to extend the Term
to December 31, 2007 shall be memorialized in writing on or before December 31,
2006; otherwise, Executive’s employment shall terminate on December 31, 2006 and
the Term shall end at that date, subject to earlier termination of employment
and earlier termination of the Term in accordance with Section 6 or 7. The
foregoing notwithstanding, in the event there occurs a Potential Change in
Control at any time on or after July 1, 2006, the Term shall not end until the
180th day following such Potential Change in Control.

3. Offices
and Duties.

The
provisions of this Section 3 will apply during the Term, except as otherwise
provided in Section 7(c) or 7(e):

(a) Generally.
Executive shall serve as the Executive Vice President of the Bank. Executive
shall have and perform such duties, responsibilities, and authorities as are
prescribed by or under the Bylaws of the Bank and as are customarily associated
with such position or, irrespective of the office, title or other designation,
if any, a position with responsibilities and powers substantially identical to
such position with the Bank. In addition, Executive shall have and perform such
additional duties, responsibilities, and authorities as may be from time to time
assigned by the President and Chief Executive Officer based on his assessment of
the business needs of the Bank, and the Bank reserves the right to change or
modify these assignments and any positions and titles associated therewith.
Executive shall devote his full business time and attention, and his best
efforts, abilities, experience, and talent, to the position of Executive Vice
President and other assignments hereunder, and for the business of the Bank,
without commitment to other business endeavors, except that Executive (i) may
make personal investments which are not in conflict with his duties to the Bank
and manage personal and family financial and legal affairs, (ii) may undertake
public speaking engagements, and (iii) may serve as a director of (or similar
position with) any other business or an educational, charitable, community,
civic, religious, or similar type of organization with the approval of the
President and Chief Executive Officer, so long as such activities (i.e., those
listed in clauses (i) through (iii)) do not preclude or render unlawful
Executive’s employment or service to the Bank or otherwise materially inhibit
the performance of Executive’s duties under this Agreement or materially impair
the business of the Bank or its affiliates.

(b) Place
of Employment.
Executive’s principal place of employment shall be at the administrative offices
of the Bank. 

4. Salary
and Annual Incentive Compensation.

As
partial compensation for the services to be rendered hereunder by Executive, the
Bank agrees to pay to Executive during the Term the compensation set forth in
this Section 4.

(a) Base
Salary. The
Bank will pay to Executive during the Term a base salary, the annual rate of
which shall be $185,000, payable in cash in substantially equal semi-monthly
installments commencing at the beginning of the Term, and otherwise in
accordance with the Bank’s usual payroll practices with respect to senior
executives (except to the extent deferred under Section 5(d)). Executive’s
annual base salary shall be reviewed by the Human Resources Committee (the
“Committee”) of the Board of Directors of the Bank (the “Board”) at least once
in each calendar year, and may be increased above, but may not be reduced below,
the then-current rate of such base salary. For purposes of this Agreement, “Base
Salary” means Executive’s then-current base salary.

(b) Annual
Incentive Compensation. The
Bank will pay to Executive during the Term annual incentive compensation which
shall offer to Executive an opportunity to earn additional compensation based
upon performance in amounts determined by the Committee in accordance with the
applicable plan and consistent with past practices of the Bank, with the nature
of the performance and the levels of performance triggering payments of such
annual target incentive compensation for each year to be established and
communicated to Executive during the first quarter of such year by the
Committee. In addition, the Committee (or the Board) may determine, in its
discretion, to increase Executive’s annual target incentive opportunity or
provide an additional annual incentive opportunity, in excess of the annual
target incentive opportunity, payable for performance in excess of or in
addition to the performance required for payment of the annual target incentive
amount. Any annual incentive compensation payable to Executive shall be paid in
accordance with the Bank’s usual practices with respect to payment of incentive
compensation to senior executives (except to the extent deferred under Section
5(d)). 

(c) Annual
Bonus. The Bank
will pay to Executive during the Term an annual bonus in an amount equal on an
after-tax basis to the annual premium cost to maintain the whole life insurance
policy referenced in Section 5(b)(iii), such bonus to be paid as soon as
administratively practicable following Executive’s delivery to the Bank of the
insurance company’s written annual notification of the amount of such annual
premium. 

2

5. Long-Term
Compensation, Including Stock Options, Benefits, Deferred Compensation, and
Expense Reimbursement.

(a) Executive
Compensation Plans.
Executive shall be entitled during the Term to participate, without
discrimination or duplication, in executive compensation plans and programs
intended for general participation by senior executives of the Bank, as
presently in effect or as they may be modified or added to by the Bank from time
to time, subject to the eligibility and other requirements of such plans and
programs, including without limitation any stock option plans, plans under which
restricted stock/restricted stock units, performance-based restricted
stock/restricted stock units or performance-accelerated restricted
stock/restricted stock units (collectively, “stock plans”) may be awarded, other
annual and long-term cash and/or equity incentive plans, and deferred
compensation plans. The Bank makes no commitment under this Section 5(a) to
provide participation opportunities to Executive in all plans and programs or at
levels equal to (or otherwise comparable to) the participation opportunity of
any other executive.

(b) Employee
and Executive Benefit Plans.
Executive shall be entitled during the Term to participate, without
discrimination or duplication, in employee and executive benefit plans and
programs of the Bank, as presently in effect or as they may be modified or added
to by the Bank from time to time, subject to the eligibility and other
requirements of such plans and programs, including without limitation plans
providing pensions, supplemental pensions, supplemental and other retirement
benefits, medical insurance, life insurance, disability insurance, and
accidental death or dismemberment insurance, as well as savings, profit-sharing,
and stock ownership plans. The Bank makes no commitment under this Section 5(b)
to provide participation opportunities to Executive in all benefit plans and
programs or at levels equal to (or otherwise comparable to) the participation
opportunity of any other executive. 

In
furtherance of and not in limitation of the foregoing, during the
Term:

	
       

      (i)
	
       

      Executive
      will participate as Executive Vice President in all executive and employee
      vacation and time-off programs;

	
       

      (ii)
	
       

      The
      Bank will provide Executive with coverage as Executive Vice President with
      respect to long-term disability insurance;

	
       

      (iii)
	
       

      Executive
      will be covered by Bank-paid group term life insurance and Executive shall
      have the right to continue to maintain, at his expense, the Guardian whole
      life insurance policy purchased by the Bank having an effective date of
      October 18, 1993;

	
       

      (iv)
	
       

      Upon
      Executive’s termination of employment with the Bank for any reason,
      Executive will be entitled to participate in such retiree medical, dental
      and life insurance plans as the Bank may, from time to time, offer in
      accordance with the terms of such plans; and

	
       

      (v)
	
       

      Executive
      will be entitled to benefits under the Supplemental Savings and Retirement
      Plan, the Supplemental Executive Retirement Plan and the Supplemental
      Executive Retirement Agreement dated January 27, 2004 (collectively, the
      “SERPS”) in accordance with the terms thereof, with the effective date of
      Executive's participation therein to be not later than the Effective
      Date.

       

(c) Acceleration
of Awards Upon a Change in Control. In the
event of a Change in Control (as defined in Section 8(b)), all outstanding stock
options, restricted stock, and other equity-based awards then held by Executive
shall become vested and exercisable.

(d) Deferral
of Compensation. If the
Bank has in effect or adopts any deferral program or arrangement permitting
executives to elect to defer any compensation, Executive will be eligible to
participate in such program. Any plan or program of the Bank which provides
benefits based on the level of salary, annual incentive, or other compensation
of Executive shall, in determining Executive’s benefits, take into account the
amount of salary, annual incentive, or other compensation prior to any reduction
for voluntary contributions made by

3

 Executive
under any deferral or similar contributory plan or program of the Bank
(excluding compensation that would not be taken into account even if not
deferred), but shall not treat any payout or settlement under such a deferral or
similar contributory plan or program to be additional salary, annual incentive,
or other compensation for purposes of determining such benefits, unless
otherwise expressly provided under such plan or program.

(e) Company
Registration Obligations. The
Company will use its best efforts to file with the Securities and Exchange
Commission and thereafter maintain the effectiveness of one or more registration
statements registering under the Securities Act of 1933, as amended (the “1933
Act”), the offer and sale of shares by the Company to Executive pursuant to
stock options or other equity-based awards granted to Executive under Company
plans or otherwise or, if shares are acquired by Executive in a transaction not
involving an offer or sale to Executive but resulting in the acquired shares
being “restricted securities” for purposes of the 1933 Act, registering the
reoffer and resale of such shares by Executive.

(f) Reimbursement
of Expenses. The
Bank will promptly reimburse Executive for all reasonable business expenses and
disbursements incurred by Executive in the performance of Executive’s duties
during the Term in accordance with the Bank’s reimbursement policies as in
effect from time to time. 

6. Termination
Due to Retirement, Death, or Disability.

(a) Retirement.
Executive may elect to terminate employment hereunder by retirement at or after
age 60 (“Retirement”). Executive’s termination of employment upon expiration of
the Term on December 31, 2006 (or December 31, 2007 in the event of an extension
of the Term as provided in Section 2) shall be deemed a Retirement hereunder. At
the time Executive’s employment terminates due to Retirement, the Term will
terminate, all obligations of the Bank and Executive under Sections 1 through 5
of this Agreement will immediately cease except for obligations which expressly
continue after termination of employment due to Retirement, and the Bank will
pay Executive, and Executive will be entitled to receive, the following:

	
       

      (i) 
	
       

      Executive’s
      Compensation Accrued at Termination (as defined in Section
      8(c));

	
       

      (ii) 
	
       

      In
      lieu of any annual incentive compensation under Section 4(b) for the year
      in which Executive’s employment terminated, an amount equal to the portion
      of annual incentive compensation that would have become payable in cash to
      Executive (i.e., excluding the portion payable in stock or in other
      non-cash awards) for that year if his employment had not terminated, based
      on performance actually achieved in that year (determined by the Committee
      following completion of the performance year), multiplied by a fraction
      the numerator of which is the number of days Executive was employed in the
      year of termination and the denominator of which is the total number of
      days in the year of termination;

	
       

      (iii) 
	
       

      The
      vesting and exercisability of stock options held by Executive at
      termination and all other terms of such options shall be governed by the
      plans and programs and the agreements and other documents pursuant to
      which such options were granted (subject to Section 10(f)
      hereof);

	
       

      (iv) 
	
      

       

      All
      restricted stock and deferred stock awards, including outstanding stock
      plan awards, all other long-term incentive awards, and all deferral
      arrangements under Section 5(d), shall be governed by the plans and
      programs under which the awards were granted or governing the deferral,
      and all rights under the SERPS and any other benefit plan shall be
      governed by such plans; and

	
       

      (v) 
	
       

      If
      Executive shall not be eligible upon Retirement for retiree coverage under
      the Bank’s health plan (the “Health Plan”) and Executive elects in
      accordance with the applicable provisions of the Consolidated Omnibus
      Budget Reconciliation Act of 1986, as amended (“COBRA”) continued coverage
      under the Health Plan in accordance with the applicable provisions of
      COBRA, the Bank shall pay to Executive on a monthly basis during such
      COBRA continuation period an amount equal on an after-tax basis to the
      total cost of such coverage. Prior to the expiration of the maximum COBRA
      continuation period available to Executive, provided that Executive
      theretofore 

 

4

 

	 	
      shall
      have complied with the conditions set forth in Section 10, the Bank shall
      make a good faith effort to obtain insured coverage for Executive (and his
      spouse and eligible dependents, if any, for whom coverage had been
      provided during the COBRA continuation period) that is substantially
      comparable to such COBRA continuation coverage, which insured coverage
      shall begin on the date of expiration of Executive’s COBRA continuation
      period and continue until the earliest of: (1) Executive’s eligibility for
      medical coverage under the Bank’s Health Plan, as a retiree or active
      employee, (2) Executive’s eligibility for medical coverage under a plan
      maintained by a subsequent employer or other entity to which Executive
      provides services, (3) Executive’s eligibility for Medicare, or (4)
      Executive’s attainment of Social Security retirement age, within the
      meaning of Section 216(l) of the Social Security Act, as the same may be
      amended (“Social Security Retirement Age”). In the event that the Bank
      determines, in its sole discretion, that it is unable to obtain such
      insured coverage for Executive (and his spouse and eligible dependents, if
      any, for whom coverage had been provided during the COBRA continuation
      period) or in the event that Executive determines, in his sole discretion,
      that any such insured coverage offered by the Bank is not substantially
      comparable to such COBRA continuation coverage, the Bank shall pay to
      Executive, provided that Executive shall not have become eligible for
      medical coverage under (1) the Bank’s Health Plan, as a retiree or active
      employee, (2) a plan maintained by a subsequent employer or other entity
      to which Executive provides services, or (3) Medicare and, provided
      further, that Executive theretofore shall have complied with the
      conditions set forth in Section 10, a lump sum amount equal on an
      after-tax basis to the present value of the total cost of retiree medical
      coverage under the Health Plan that would have been incurred by both
      Executive and the Bank on behalf of Executive (and his spouse and eligible
      dependents, if any, for whom coverage had been provided during the COBRA
      continuation period) if Executive (and such spouse and dependents, if any)
      had been eligible for such retiree medical coverage from the end of
      Executive’s COBRA continuation period until Executive’s attainment of
      Social Security retirement age, calculated on the assumption that the cost
      of such coverage would remain unchanged from that in effect for the year
      in which such lump sum is paid. Such lump sum amount shall be calculated
      by an actuary selected by the Bank and paid in cash as soon as
      administratively practicable following the expiration of Executive’s COBRA
      continuation period and shall not be subject to reduction or forfeiture by
      reason of any coverage for which Executive may thereafter become eligible
      by reason of subsequent employment or otherwise. For purposes of this
      Section, present value shall be calculated on the basis of the discount
      rate set forth in the Bank’s qualified retirement plan for the
      determination of lump sum
payments.
 

(b) Death. In the
event of Executive’s death which results in the termination of Executive’s
employment, the Term will terminate, all obligations of the Bank and Executive
under Sections 1 through 5 of this Agreement will immediately cease except for
obligations which expressly continue after death, and the Bank will pay
Executive’s beneficiary or estate, and Executive’s beneficiary or estate will be
entitled to receive, the following: 

	
       

      (i) 
	
       

      Executive’s
      Compensation Accrued at Termination;

	
       

      (ii) 
	
       

      In
      lieu of any annual incentive compensation under Section 4(b) for the year
      in which Executive’s death occurred, an amount equal to the portion of
      annual incentive compensation that would have become payable in cash to
      Executive (i.e., excluding the portion payable in stock or in other
      non-cash awards) for that year if his employment had not terminated, based
      on performance actually achieved in that year (determined by the Committee
      following completion of the performance year), multiplied by a fraction
      the numerator of which is the number of days Executive was employed in the
      year of his death and the denominator of which is the total number of days
      in the year of death;

	
       

      (iii) 
	
       

      The
      vesting and exercisability of stock options held by Executive at death and
      all other terms of such options shall be governed by the plans and
      programs and the agreements and other documents pursuant to which such
      options were granted;

 

5

 

	
       

      (iv) 
	
      

      All
      restricted stock and deferred stock awards, including outstanding stock
      plan awards, all other long-term incentive awards, and all deferral
      arrangements under Section 5(d), shall be governed by the plans and
      programs under which the awards were granted or governing the deferral,
      and all rights under the SERPS and any other benefit plan shall be
      governed by such plans;

	
       

      (v) 
	
       

      If
      Executive’s surviving spouse (and eligible dependents, if any) elects
      continued coverage under the Bank’s Health Plan in accordance with the
      applicable provisions of COBRA, the Bank shall pay to Executive’s
      surviving spouse on a monthly basis during such COBRA continuation period
      an amount equal on an after-tax basis to the total cost of such coverage.
      No further benefits shall be paid under this Section after the expiration
      of the maximum COBRA continuation period available to Executive’s
      surviving spouse and eligible dependents, if
any.

 

(c) Disability. The
Bank may terminate the employment of Executive hereunder due to the Disability
(as defined in Section 8(d)) of Executive. Upon termination of employment, the
Term will terminate, all obligations of the Bank and Executive under Sections 1
through 5 of this Agreement will immediately cease except for obligations which
expressly continue after termination of employment due to Disability, and the
Bank will pay Executive, and Executive will be entitled to receive, the
following: 

	
       

      (i) 
	
       

      Executive’s
      Compensation Accrued at Termination;

	
       

      (ii) 
	
       

      In
      lieu of any annual incentive compensation under Section 4(b) for the year
      in which Executive’s employment terminated, an amount equal to the portion
      of annual incentive compensation that would have become payable in cash to
      Executive (i.e., excluding the portion payable in stock or in other
      non-cash awards) for that year if his employment had not terminated, based
      on performance actually achieved in that year (determined by the Committee
      following completion of the performance year), multiplied by a fraction
      the numerator of which is the number of days Executive was employed in the
      year of termination and the denominator of which is the total number of
      days in the year of termination;

	
       

      (iii) 
	
       

      Stock
      options held by Executive at termination shall be governed by the plans
      and programs and the agreements and other documents pursuant to which such
      options were granted;

	
       

      (iv) 
	
       

      Any
      performance objectives upon which the earning of performance-based
      restricted stock and deferred stock awards, including outstanding stock
      plan awards, and other long-term incentive awards is conditioned shall be
      deemed to have been met at target level at the date of termination, and
      restricted stock and deferred stock awards, including outstanding stock
      plan awards, and other long-term incentive awards (to the extent then or
      previously earned, in the case of performance-based awards) shall become
      fully vested and non-forfeitable at the date of such termination, and, in
      other respects, such awards shall be governed by the plans and programs
      and the agreements and other documents pursuant to which such awards were
      granted;

	
       

      (v) 
	
       

      Disability
      benefits shall be payable in accordance with the Bank's plans, programs
      and policies, including the SERPS, and all deferral arrangements under
      Section 5(d) will be settled in accordance with the plans and programs
      governing the deferral;

	
       

      (vi) 
	
       

      If
      Executive elects after termination of employment continued coverage under
      the Health Plan in accordance with the applicable provisions of COBRA, the
      Bank shall pay to Executive on a monthly basis during such COBRA
      continuation period an amount equal on an after-tax basis to the total
      cost of such coverage. Prior to the expiration of the maximum COBRA
      continuation period available to Executive, provided that Executive
      theretofore shall have complied with the conditions set forth in Section
      10, the Bank shall make a good faith effort to obtain insured coverage for
      Executive (and his spouse and eligible dependents, if any, for whom
      coverage had been provided during the COBRA continuation period) that is
      substantially comparable to such COBRA continuation coverage, which
      insured coverage shall begin on the date of expiration of
  

 

6

 

	 	
      Executive’s
      COBRA continuation period and continue until the earliest of: (1)
      Executive’s eligibility for medical coverage under the Bank’s Health Plan,
      as a retiree or active employee, (2) Executive’s eligibility for medical
      coverage under a plan maintained by a subsequent employer or other entity
      to which Executive provides services, (3) Executive’s eligibility for
      Medicare, or (4) Executive’s attainment of Social Security retirement age.
      In the event that the Bank determines, in its sole discretion, that it is
      unable to obtain such insured coverage for Executive (and his spouse and
      eligible dependents, if any, for whom coverage had been provided during
      the COBRA continuation period) or in the event that Executive determines,
      in his sole discretion, that any such insured coverage offered by the Bank
      is not substantially comparable to such COBRA continuation coverage, the
      Bank shall pay to Executive, provided that Executive shall not have become
      eligible for medical coverage under (1) the Bank’s Health Plan, as a
      retiree or active employee, (2) a plan maintained by a subsequent employer
      or other entity to which Executive provides services, or (3) Medicare and,
      provided further, that Executive theretofore shall have complied with the
      conditions set forth in Section 10, a lump sum amount equal on an
      after-tax basis to the present value of the total cost of retiree medical
      coverage under the Health Plan that would have been incurred by both
      Executive and the Bank on behalf of Executive (and his spouse and eligible
      dependents, if any, for whom coverage had been provided during the COBRA
      continuation period) if Executive (and such spouse and dependents, if any)
      had been eligible for such retiree medical coverage from the end of
      Executive’s COBRA continuation period until Executive’s attainment of
      Social Security retirement age, calculated on the assumption that the cost
      of such coverage would remain unchanged from that in effect for the year
      in which such lump sum is paid. Such lump sum amount shall be calculated
      by an actuary selected by the Bank and paid in cash as soon as
      administratively practicable following the expiration of Executive’s COBRA
      continuation period and shall not be subject to reduction or forfeiture by
      reason of any coverage for which Executive may thereafter become eligible
      by reason of subsequent employment or otherwise. In addition, as soon as
      administratively practicable following Executive’s termination of
      employment, provided that Executive shall have complied with the
      conditions set forth in Section 10, the Bank shall pay to Executive a lump
      sum amount equal on an after-tax basis to the present value of the sum of
      (1) the amount that Executive and the Bank would have been paid for
      coverage under the Bank’s group long-term disability policy from
      Executive’s termination of employment until Executive’s attainment of
      Social Security retirement age, calculated on the assumption that the cost
      of such coverage would remain unchanged from that in effect for the year
      in which Executive’s termination occurred; and (2) the amount that
      Executive and the Bank would have paid to continue Executive’s group life
      insurance coverage from Executive’s termination of employment until
      Executive’s attainment of Social Security retirement age, calculated on
      the assumption that the cost of such coverage would remain unchanged from
      that in effect for the year in which Executive’s termination occurred. For
      purposes of this Section, present value shall be calculated on the basis
      of the discount rate set forth in the Bank’s qualified retirement plan for
      the determination of lump sum
payments. 

 

(d) Other
Terms of Payment Following Retirement, Death, or Disability. Nothing
in this Section 6 shall limit the benefits payable or provided in the event
Executive’s employment terminates due to Retirement, death, or Disability under
the terms of plans or programs of the Bank more favorable to Executive (or his
beneficiaries) than the benefits payable or provided under this Section 6
(except in the case of annual incentives in lieu of which amounts are paid
hereunder), including plans and programs adopted after the date of this
Agreement. Amounts payable under this Section 6 following Executive’s
termination of employment, other than those expressly payable following
determination of performance for the year of termination for purposes of annual
incentive compensation or otherwise expressly payable on a deferred basis, will
be paid as promptly as practicable after such termination of
employment.

7. Termination
of Employment For Reasons Other Than Retirement, Death or
Disability.

(a) Termination
by the Bank for Cause. The
Bank may terminate the employment of Executive hereunder for Cause (as defined
in Section 8(a)) at any time. At the time Executive’s employment is terminated
for Cause, the Term will terminate, all obligations of the Bank and Executive
under Sections 1 through 5 of this 

7

Agreement
will immediately cease except for obligations which expressly continue after
termination of employment by the Bank for Cause, and the Bank will pay
Executive, and Executive will be entitled to receive, the following:

	
       

      (i) 
	
       

      Executive’s
      Compensation Accrued at Termination (as defined in Section
      8(c));

	
       

      (ii) 
	
       

      All
      stock options, restricted stock and deferred stock awards, including
      outstanding stock plan awards, and all other long-term incentive awards
      will be governed by the terms of the plans and programs under which the
      awards were granted; and

	
       

      (iii) 
	
       

      All
      deferral arrangements under Section 5(d) will be settled in accordance
      with the plans and programs governing the deferral, and all rights, if
      any, under the SERPS and any other benefit plan shall be governed by such
      plans.

 

(b) Termination
by Executive Other Than For Good Reason.
Executive may terminate his employment hereunder voluntarily for reasons other
than Good Reason (as defined in Section 8(e)) at any time upon 90 days’ written
notice to the Bank. At the time Executive’s employment is terminated by
Executive other than for Good Reason the Term will terminate, all obligations of
the Bank and Executive under Sections 1 through 5 of this Agreement will
immediately cease, and the Bank will pay Executive, and Executive will be
entitled to receive, the following: 

	
       

      (i) 
	
       

      Executive’s
      Compensation Accrued at Termination;

	
       

      (ii) 
	
       

      All
      stock options, restricted stock and deferred stock awards, including
      outstanding stock plan awards, and all other long-term incentive awards
      will be governed by the terms of the plans and programs under which the
      awards were granted;

	
       

      (iii) 
	
       

      All
      deferral arrangements under Section 5(d) will be settled in accordance
      with the plans and programs governing the deferral, and all rights under
      the SERPS and any other benefit plan shall be governed by such
      plans.

 

(c) Termination
by the Bank Without Cause Prior to or More than Two Years After a Change in
Control. The
Bank may terminate the employment of Executive hereunder without Cause, if at
the date of termination no Change in Control has occurred or such date of
termination is at least two years after the most recent Change in Control, upon
at least 90 days’ written notice to Executive. The foregoing notwithstanding,
the Bank may elect, by written notice to Executive, to terminate Executive’s
positions specified in Sections 1 and 3 and all other obligations of Executive
and the Bank under Section 3 at a date earlier than the expiration of such
90-day period, if so specified by the Bank in the written notice, provided that
Executive shall be treated as an employee of the Bank (without any assigned
duties) for all other purposes of this Agreement, including for purposes of
Sections 4 and 5, from such specified date until the expiration of such 90-day
period. At the time Executive’s employment is terminated by the Bank (i.e., at
the expiration of such notice period), the Term will terminate, all remaining
obligations of the Bank and Executive under Sections 1 through 5 of this
Agreement will immediately cease (except for obligations which continue after
termination of employment as expressly provided herein), and the Bank will pay
Executive, and Executive will be entitled to receive, the following:

	
       

      (i) 
	
       

      Executive’s
      Compensation Accrued at Termination;

	
       

      (ii) 
	
       

      Cash
      in an aggregate amount equal to three times the sum of (A) Executive’s
      Base Salary under Section 4(a) immediately prior to termination plus (B)
      an amount equal to the greater of (x) the portion of Executive’s annual
      target incentive compensation potentially payable in cash to Executive
      (i.e., excluding the portion payable in stock or in other non-cash awards)
      for the year of termination or (y) the portion of Executive’s annual
      incentive compensation that became payable in cash to Executive (i.e.,
      excluding the portion payable in stock or in other non-cash awards) for
      the latest year preceding the year of termination based on performance
      actually achieved in that latest year. The amount determined to be payable
      under this Section 7(c)(ii) shall be payable in monthly installments over
      the 36 months following termination, without interest, except the Bank may
      elect to accelerate payment of the remaining balance of such amount and to
      pay it as a lump sum, without discount;

 

8

 

	
       

      (iii) 
	
       

      In
      lieu of any annual incentive compensation under Section 4(b) for the year
      in which Executive’s employment terminated, an amount equal to the portion
      of Executive’s annual target incentive compensation potentially payable in
      cash to Executive (i.e., excluding the portion payable in stock or in
      other non-cash awards) for the year of termination, multiplied by a
      fraction the numerator of which is the number of days Executive was
      employed in the year of termination and the denominator of which is the
      total number of days in the year of termination;

	
       

      (iv) 
	
       

      Stock
      options held by Executive at termination, if not then vested and
      exercisable, will become fully vested and exercisable at the date of such
      termination, and, in other respects (including the period following
      termination during which such options may be exercised), such options
      shall be governed by the plans and programs and the agreements and other
      documents pursuant to which such options were granted;

	
       

      (v) 
	
       

      Any
      performance objectives upon which the earning of performance-based
      restricted stock and deferred stock awards, including outstanding stock
      plan awards, and other long-term incentive awards is conditioned shall be
      deemed to have been met at target level at the date of termination, and
      restricted stock and deferred stock awards, including outstanding stock
      plan awards, and other long-term incentive awards (to the extent then or
      previously earned, in the case of performance-based awards) shall become
      fully vested and non-forfeitable at the date of such termination, and, in
      other respects, such awards shall be governed by the plans and programs
      and the agreements and other documents pursuant to which such awards were
      granted;

	
       

      (vi) 
	
       

      All
      deferral arrangements under Section 5(d) will be settled in accordance
      with the plans and programs governing the deferral;

	
       

      (vii) 
	
       

      All
      rights under the SERPS shall be governed by such plans;

	
       

      (viii) 
	
      

       

      If
      Executive elects after termination of employment continued coverage under
      the Health Plan in accordance with the applicable provisions of COBRA, the
      Bank shall pay to Executive on a monthly basis during such COBRA
      continuation period an amount equal on an after-tax basis to the total
      cost of such coverage. If the maximum COBRA continuation period available
      to Executive shall be less than three years, prior to the expiration of
      the maximum COBRA continuation period available to Executive, provided
      that Executive theretofore shall have complied with the conditions set
      forth in Section 10, the Bank shall make a good faith effort to obtain
      insured coverage for Executive (and his spouse and eligible dependents, if
      any, for whom coverage had been provided during the COBRA continuation
      period) that is substantially comparable to such COBRA continuation
      coverage, which insured coverage shall begin on the date of expiration of
      Executive’s COBRA continuation period and continue until the third
      anniversary of Executive’s termination of employment. In the event that
      the Bank determines, in its sole discretion, that it is unable to obtain
      such insured coverage for Executive (and his spouse and eligible
      dependents, if any, for whom coverage had been provided during the COBRA
      continuation period) or in the event that Executive determines, in his
      sole discretion, that any such insured coverage offered by the Bank is not
      substantially comparable to such COBRA continuation coverage, the Bank
      shall pay to Executive, provided that Executive shall not have become
      eligible for medical coverage under (1) the Bank’s Health Plan, as a
      retiree or active employee, (2) a plan maintained by a subsequent employer
      or other entity to which Executive provides services, or (3) Medicare and,
      provided further, that Executive theretofore shall have complied with the
      conditions set forth in Section 10, a lump sum amount equal on an
      after-tax basis to the present value of the total cost of retiree medical
      coverage under the Health Plan that would have been incurred by both
      Executive and the Bank on behalf of Executive (and his spouse and eligible
      dependents, if any, for whom coverage had been provided during the COBRA
      continuation period) if Executive (and such

 

9

 

	 	
      spouse
      and dependents, if any) had been eligible for such retiree medical
      coverage from the end of Executive’s COBRA continuation period until the
      third anniversary of Executive’s termination of employment, calculated on
      the assumption that the cost of such coverage would remain unchanged from
      that in effect for the year in which such lump sum is paid. Such lump sum
      amount shall be calculated by an actuary selected by the Bank and paid in
      cash as soon as administratively practicable following the expiration of
      Executive’s COBRA continuation period and shall not be subject to
      reduction or forfeiture by reason of any coverage for which Executive may
      thereafter become eligible by reason of subsequent employment or
      otherwise. In addition, as soon as administratively practicable following
      Executive’s termination of employment, provided that Executive shall have
      complied with the conditions set forth in Section 10, the Bank shall pay
      to Executive a lump sum amount equal on an after-tax basis to the present
      value of the sum of (1) the amount that Executive and the Bank would have
      paid, had he remained employed, for coverage under the Bank’s group
      long-term disability policy from the date of Executive’s termination of
      employment until the third anniversary of Executive’s termination of
      employment, calculated on the assumption that the cost of such coverage
      would remain unchanged from that in effect for the year in which
      Executive’s termination occurred; and (2) the amount that Executive and
      the Bank would have paid to continue Executive’s group life insurance
      coverage, had he remained employed, from the date of Executive’s
      termination of employment until the third anniversary of Executive’s
      termination of employment, calculated on the assumption that the cost of
      such coverage would remain unchanged from that in effect for the year in
      which Executive’s termination occurred. For purposes of this Section,
      present value shall be calculated on the basis of the discount rate set
      forth in the Bank’s qualified retirement plan for the determination of
      lump sum payments.

 

(d) Termination
by Executive for Good Reason Prior to or More than Two Years After a Change in
Control.
Executive may terminate his employment hereunder for Good Reason, prior to a
Change in Control or after the second anniversary of the most recent Change in
Control, upon 90 days’ written notice to the Bank; provided, however, that, if
the Bank has corrected the basis for such Good Reason within 30 days after
receipt of such notice, Executive may not terminate his employment for Good
Reason, and therefore Executive’s notice of termination will automatically
become null and void. At the time Executive’s employment is terminated by
Executive for Good Reason (i.e., at the expiration of such notice period), the
Term will terminate, all obligations of the Bank and Executive under Sections 1
through 5 of this Agreement will immediately cease (except for obligations which
continue after termination of employment as expressly provided herein), and the
Bank will pay Executive, and Executive will be entitled to receive, the
following: 

	
       

      (i) 
	
       

      Executive’s
      Compensation Accrued at Termination;

	
       

      (ii) 
	
       

      Cash
      in an aggregate amount equal to three times the sum of (A) Executive’s
      Base Salary under Section 4(a) immediately prior to termination plus (B)
      an amount equal to the greater of (x) the portion of Executive’s annual
      target incentive compensation potentially payable in cash to Executive
      (i.e., excluding the portion payable in stock or in other non-cash awards)
      for the year of termination or (y) the portion of Executive’s annual
      incentive compensation that became payable in cash to Executive (i.e.,
      excluding the portion payable in stock or in other non-cash awards) for
      the latest year preceding the year of termination based on performance
      actually achieved in that latest year. The amount determined to be payable
      under this Section 7(d)(ii) shall be payable in monthly installments over
      the 36 months following termination, without interest, except the Bank may
      elect to accelerate payment of the remaining balance of such amount and to
      pay it as a lump sum, without discount;

	
       

      (iii) 
	
       

      In
      lieu of any annual incentive compensation under Section 4(b) for the year
      in which Executive’s employment terminated, an amount equal to the portion
      of Executive’s annual target incentive compensation potentially payable in
      cash to Executive (i.e., excluding the portion payable in stock or in
      other non-cash awards) for the year of termination, multiplied by a
      fraction the numerator of which is the number of days Executive was
      employed in the year of termination and the denominator of which is the
      total number of days in the year of
termination;

 

10

 

	
       

      (iv) 
	
       

      Stock
      options held by Executive at termination, if not then vested and
      exercisable, will become fully vested and exercisable at the date of such
      termination, and, in other respects (including the period following
      termination during which such options may be exercised), such options
      shall be governed by the plans and programs and the agreements and other
      documents pursuant to which such options were granted;

	
       

      (v) 
	
       

      Any
      performance objectives upon which the earning of performance-based
      restricted stock and deferred stock awards, including outstanding stock
      plan awards, and other long-term incentive awards is conditioned shall be
      deemed to have been met at target level at the date of termination, and
      restricted stock and deferred stock awards, including outstanding stock
      plan awards, and other long-term incentive awards (to the extent then or
      previously earned, in the case of performance-based awards) shall become
      fully vested and non-forfeitable at the date of such termination, and, in
      other respects, such awards shall be governed by the plans and programs
      and the agreements and other documents pursuant to which such awards were
      granted;

	
       

      (vi) 
	
       

      All
      deferral arrangements under Section 5(d) will be settled in accordance
      with the plans and programs governing the deferral;

	
       

      (vii) 
	
       

      All
      rights under the SERPS shall be governed by such plans;
  and

	
       

      (viii) 
	
       

      If
      Executive elects after termination of employment continued coverage under
      the Health Plan in accordance with the applicable provisions of COBRA, the
      Bank shall pay to Executive on a monthly basis during such COBRA
      continuation period an amount equal on an after-tax basis to the total
      cost of such coverage. If the maximum COBRA continuation period available
      to Executive shall be less than three years, prior to the expiration of
      the maximum COBRA continuation period available to Executive, provided
      that Executive theretofore shall have complied with the conditions set
      forth in Section 10, the Bank shall make a good faith effort to obtain
      insured coverage for Executive (and his spouse and eligible dependents, if
      any, for whom coverage had been provided during the COBRA continuation
      period) that is substantially comparable to such COBRA continuation
      coverage, which insured coverage shall begin on the date of expiration of
      Executive’s COBRA continuation period and continue until the third
      anniversary of Executive’s termination of employment. In the event that
      the Bank determines, in its sole discretion, that it is unable to obtain
      such insured coverage for Executive (and his spouse and eligible
      dependents, if any, for whom coverage had been provided during the COBRA
      continuation period) or in the event that Executive determines, in his
      sole discretion, that any such insured coverage offered by the Bank is not
      substantially comparable to such COBRA continuation coverage, the Bank
      shall pay to Executive, provided that Executive shall not have become
      eligible for medical coverage under (1) the Bank’s Health Plan, as a
      retiree or active employee, (2) a plan maintained by a subsequent employer
      or other entity to which Executive provides services, or (3) Medicare and,
      provided further, that Executive theretofore shall have complied with the
      conditions set forth in Section 10, a lump sum amount equal on an
      after-tax basis to the present value of the total cost of retiree medical
      coverage under the Health Plan that would have been incurred by both
      Executive and the Bank on behalf of Executive (and his spouse and eligible
      dependents, if any, for whom coverage had been provided during the COBRA
      continuation period) if Executive (and such spouse and dependents, if any)
      had been eligible for such retiree medical coverage from the end of
      Executive’s COBRA continuation period until the third anniversary of
      Executive’s termination of employment, calculated on the assumption that
      the cost of such coverage would remain unchanged from that in effect for
      the year in which such lump sum is paid. Such lump sum amount shall be
      calculated by an actuary selected by the Bank and paid in cash as soon as
      administratively practicable following the expiration of Executive’s COBRA
      continuation period and shall not be subject to reduction or forfeiture by
      reason of any coverage for which Executive may thereafter become eligible
      by reason of subsequent employment or otherwise. In addition, as soon as
      administratively practicable following Executive’s termination of
      employment, provided that Executive shall have complied with the
      conditions set forth in Section 10, the Bank shall pay to Executive a lump
      sum amount equal on an after-tax basis to the present value of the sum of
      (1) the 

 

11

 

	 	
      amount
      that Executive and the Bank would have paid, had he remained employed, for
      coverage under the Bank’s group long-term disability policy from the date
      of Executive’s termination of employment until the third anniversary of
      Executive’s termination of employment, calculated on the assumption that
      the cost of such coverage would remain unchanged from that in effect for
      the year in which Executive’s termination occurred; and (2) the amount
      that Executive and the Bank would have paid to continue Executive’s group
      life insurance coverage, had he remained employed, from the date of
      Executive’s termination of employment until the third anniversary of
      Executive’s termination of employment, calculated on the assumption that
      the cost of such coverage would remain unchanged from that in effect for
      the year in which Executive’s termination occurred. For purposes of this
      Section, present value shall be calculated on the basis of the discount
      rate set forth in the Bank’s qualified retirement plan for the
      determination of lump sum
payments. 

 

If any
payment or benefit under this Section 7(d) is based on Base Salary or other
level of compensation or benefits at the time of Executive’s termination and if
a reduction in such Base Salary or other level of compensation or benefit was
the basis for Executive’s termination for Good Reason, then the Base Salary or
other level of compensation in effect before such reduction shall be used to
calculate payments or benefits under this Section 7(d).

(e) Termination
by the Bank Without Cause Within Two Years After a Change in
Control. The
Bank may terminate the employment of Executive hereunder without Cause,
simultaneously with or within two years after a Change in Control, upon at least
90 days’ written notice to Executive. The foregoing notwithstanding, the Bank
may elect, by written notice to Executive, to terminate Executive’s positions
specified in Sections 1 and 3 and all other obligations of Executive and the
Bank under Section 3 at a date earlier than the expiration of such 90-day notice
period, if so specified by the Bank in the written notice, provided that
Executive shall be treated as an employee of the Bank (without any assigned
duties) for all other purposes of this Agreement, including for purposes of
Sections 4 and 5, from such specified date until the expiration of such 90-day
period. At the time Executive’s employment is terminated by the Bank (i.e., at
the expiration of such notice period), the Term will terminate, all remaining
obligations of the Bank and Executive under Sections 1 through 5 of this
Agreement will immediately cease (except for obligations which continue after
termination of employment as expressly provided herein), and the Bank will pay
Executive, and Executive will be entitled to receive, the following:

 

	
      (i) 
	
      Executive’s
      Compensation Accrued at Termination;

	
       

      (ii) 
	
       

      Cash
      in an aggregate amount equal to three times the sum of (A) Executive’s
      Base Salary under Section 4(a) immediately prior to termination plus (B)
      an amount equal to the greater of (x) the portion of Executive’s annual
      target incentive compensation potentially payable in cash to Executive
      (i.e., excluding the portion payable in stock or in other non-cash awards)
      for the year of termination or (y) the portion of Executive’s annual
      incentive compensation that became payable in cash to Executive (i.e.,
      excluding the portion payable in stock or in other non-cash awards) for
      the latest year preceding the year of termination based on performance
      actually achieved in that latest year. The amount determined to be payable
      under this Section 7(e)(ii) shall be paid by the Bank not later than 15
      days after Executive’s termination;

	
       

      (iii) 
	
       

      In
      lieu of any annual incentive compensation under Section 4(b) for the year
      in which Executive’s employment terminated, an amount equal to the portion
      of Executive’s annual target incentive compensation potentially payable in
      cash to Executive (i.e., excluding the portion payable in stock or in
      other non-cash awards) for the year of termination, multiplied by a
      fraction the numerator of which is the number of days Executive was
      employed in the year of termination and the denominator of which is the
      total number of days in the year of termination;

	
       

      (iv) 
	
       

      Stock
      options held by Executive at termination, if not then vested and
      exercisable, will become fully vested and exercisable at the date of such
      termination, and any such options granted on or after the date hereof
      shall remain outstanding and exercisable until the stated expiration date
      of the Option as though Executive’s employment did not terminate, and, in
      other respects, such options shall be governed by the plans and programs
      and the agreements and other documents pursuant to which such options were
      granted;

 

12

 

	
       

      (v) 
	
       

      Any
      performance objectives upon which the earning of performance-based
      restricted stock and deferred stock awards, including outstanding stock
      plan awards, and other long-term incentive awards is conditioned shall be
      deemed to have been met at target level at the date of termination, and
      restricted stock and deferred stock awards, including outstanding stock
      plan awards, and other long-term incentive awards (to the extent then or
      previously earned, in the case of performance-based awards) shall become
      fully vested and non-forfeitable at the date of such termination, and, in
      other respects, such awards shall be governed by the plans and programs
      and the agreements and other documents pursuant to which such awards were
      granted;

	
       

      (vi) 
	
       

      All
      deferral arrangements under Section 5(d) will be settled in accordance
      with the plans and programs governing the deferral;

	
       

      (vii) 
	
       

      All
      rights under the SERPS shall be governed by such plans;
  and

	
       

      (viii) 
	
       

      If
      Executive elects after termination of employment continued coverage under
      the Health Plan in accordance with the applicable provisions of COBRA, the
      Bank shall pay to Executive on a monthly basis during such COBRA
      continuation period an amount equal on an after-tax basis to the total
      cost of such coverage. If the maximum COBRA continuation period available
      to Executive shall be less than three years, prior to the expiration of
      the maximum COBRA continuation period available to Executive, provided
      that Executive theretofore shall have complied with the conditions set
      forth in Section 10, the Bank shall make a good faith effort to obtain
      insured coverage for Executive (and his spouse and eligible dependents, if
      any, for whom coverage had been provided during the COBRA continuation
      period) that is substantially comparable to such COBRA continuation
      coverage, which insured coverage shall begin on the date of expiration of
      Executive’s COBRA continuation period and continue until the third
      anniversary of Executive’s termination of employment. In the event that
      the Bank determines, in its sole discretion, that it is unable to obtain
      such insured coverage for Executive (and his spouse and eligible
      dependents, if any, for whom coverage had been provided during the COBRA
      continuation period) or in the event that Executive determines, in his
      sole discretion, that any such insured coverage offered by the Bank is not
      substantially comparable to such COBRA continuation coverage, the Bank
      shall pay to Executive, provided that Executive shall not have become
      eligible for medical coverage under (1) the Bank’s Health Plan, as a
      retiree or active employee, (2) a plan maintained by a subsequent employer
      or other entity to which Executive provides services, or (3) Medicare and,
      provided further, that Executive theretofore shall have complied with the
      conditions set forth in Section 10, a lump sum amount equal on an
      after-tax basis to the present value of the total cost of retiree medical
      coverage under the Health Plan that would have been incurred by both
      Executive and the Bank on behalf of Executive (and his spouse and eligible
      dependents, if any, for whom coverage had been provided during the COBRA
      continuation period) if Executive (and such spouse and dependents, if any)
      had been eligible for such retiree medical coverage from the end of
      Executive’s COBRA continuation period until the third anniversary of
      Executive’s termination of employment, calculated on the assumption that
      the cost of such coverage would remain unchanged from that in effect for
      the year in which such lump sum is paid. Such lump sum amount shall be
      calculated by an actuary selected by the Bank and paid in cash as soon as
      administratively practicable following the expiration of Executive’s COBRA
      continuation period and shall not be subject to reduction or forfeiture by
      reason of any coverage for which Executive may thereafter become eligible
      by reason of subsequent employment or otherwise. In addition, as soon as
      administratively practicable following Executive’s termination of
      employment, provided that Executive shall have complied with the
      conditions set forth in Section 10, the Bank shall pay to Executive a lump
      sum amount equal on an after-tax basis to the present value of the sum of
      (1) the amount that Executive and the Bank would have paid, had he
      remained employed, for coverage under the Bank’s group long-term
      disability policy from the date of Executive’s termination of employment
      until the third anniversary of Executive’s termination of employment,
      calculated on 

 

13

 

	 	
      the
      assumption that the cost of such coverage would remain unchanged from that
      in effect for the year in which Executive’s termination occurred; and (2)
      the amount that Executive and the Bank would have paid to continue
      Executive’s group life insurance coverage, had he remained employed, from
      the date of Executive’s termination of employment until the third
      anniversary of Executive’s termination of employment, calculated on the
      assumption that the cost of such coverage would remain unchanged from that
      in effect for the year in which Executive’s termination occurred. For
      purposes of this Section, present value shall be calculated on the basis
      of the discount rate set forth in the Bank’s qualified retirement plan for
      the determination of lump sum
payments. 

 

(f) Termination
by Executive for Good Reason Within Two Years After a Change in
Control.
Executive may terminate his employment hereunder for Good Reason, simultaneously
with or within two years after a Change in Control, upon 90 days’ written notice
to the Bank; provided, however, that, if the Bank has corrected the basis for
such Good Reason within 30 days after receipt of such notice, Executive may not
terminate his employment for Good Reason, and therefore Executive’s notice of
termination will automatically become null and void. At the time Executive’s
employment is terminated by Executive for Good Reason (i.e., at the expiration
of such notice period), the Term will terminate, all obligations of the Bank and
Executive under Sections 1 through 5 of this Agreement will immediately cease
(except for obligations which continue after termination of employment as
expressly provided herein), and the Bank will pay Executive, and Executive will
be entitled to receive, the following: 

 

	
      (i) 
	
      Executive’s
      Compensation Accrued at Termination;

	
       

      (ii) 
	
       

      Cash
      in an aggregate amount equal to three times the sum of (A) Executive’s
      Base Salary under Section 4(a) immediately prior to termination plus (B)
      an amount equal to the greater of (x) the portion of Executive’s annual
      target incentive compensation potentially payable in cash to Executive
      (i.e., excluding the portion payable in stock or in other non-cash awards)
      for the year of termination or (y) the portion of Executive’s annual
      incentive compensation that became payable in cash to Executive (i.e.,
      excluding the portion payable in stock or in other non-cash awards) for
      the latest year preceding the year of termination based on performance
      actually achieved in that latest year. The amount determined to be payable
      under this Section 7(f)(ii) shall be paid by the Bank not later than 15
      days after Executive’s termination;

	
       

      (iii) 
	
       

      In
      lieu of any annual incentive compensation under Section 4(b) for the year
      in which Executive’s employment terminated, an amount equal to the portion
      of Executive’s annual target incentive compensation potentially payable in
      cash to Executive (i.e., excluding the portion payable in stock or in
      other non-cash awards) for the year of termination, multiplied by a
      fraction the numerator of which is the number of days Executive was
      employed in the year of termination and the denominator of which is the
      total number of days in the year of termination;

	
       

      (iv) 
	
       

      Stock
      options held by Executive at termination, if not then vested and
      exercisable, will become fully vested and exercisable at the date of such
      termination, and any such options granted on or after the date hereof
      shall remain outstanding and exercisable until the stated expiration date
      of the Option as though Executive’s employment did not terminate, and, in
      other respects, such options shall be governed by the plans and programs
      and the agreements and other documents pursuant to which such options were
      granted;

	
       

      (v) 
	
       

      Any
      performance objectives upon which the earning of performance-based
      restricted stock and deferred stock awards, including outstanding stock
      plan awards, and other long-term incentive awards is conditioned shall be
      deemed to have been met at target level at the date of termination, and
      restricted stock and deferred stock awards, including outstanding stock
      plan awards, and other long-term incentive awards (to the extent then or
      previously earned, in the case of performance-based awards) shall become
      fully vested and non-forfeitable at the date of such termination, and, in
      other respects, such awards shall be governed by the plans and programs
      and the agreements and other documents pursuant to which such awards were
      granted;

 

14

 

	
       

      (vi) 
	
       

      All
      deferral arrangements under Section 5(d) will be settled in accordance
      with the plans and programs governing the deferral;

	
       

      (vii) 
	
       

      All
      rights under the SERPS shall be governed by such plans;
  and

	
       

      (viii) 
	
       

      If
      Executive elects after termination of employment continued coverage under
      the Health Plan in accordance with the applicable provisions of COBRA, the
      Bank shall pay to Executive on a monthly basis during such COBRA
      continuation period an amount equal on an after-tax basis to the total
      cost of such coverage. If the maximum COBRA continuation period available
      to Executive shall be less than three years, prior to the expiration of
      the maximum COBRA continuation period available to Executive, provided
      that Executive theretofore shall have complied with the conditions set
      forth in Section 10, the Bank shall make a good faith effort to obtain
      insured coverage for Executive (and his spouse and eligible dependents, if
      any, for whom coverage had been provided during the COBRA continuation
      period) that is substantially comparable to such COBRA continuation
      coverage, which insured coverage shall begin on the date of expiration of
      Executive’s COBRA continuation period and continue until the third
      anniversary of Executive’s termination of employment. In the event that
      the Bank determines, in its sole discretion, that it is unable to obtain
      such insured coverage for Executive (and his spouse and eligible
      dependents, if any, for whom coverage had been provided during the COBRA
      continuation period) or in the event that Executive determines, in his
      sole discretion, that any such insured coverage offered by the Bank is not
      substantially comparable to such COBRA continuation coverage, the Bank
      shall pay to Executive, provided that Executive shall not have become
      eligible for medical coverage under (1) the Bank’s Health Plan, as a
      retiree or active employee, (2) a plan maintained by a subsequent employer
      or other entity to which Executive provides services, or (3) Medicare and,
      provided further, that Executive theretofore shall have complied with the
      conditions set forth in Section 10, a lump sum amount equal on an
      after-tax basis to the present value of the total cost of retiree medical
      coverage under the Health Plan that would have been incurred by both
      Executive and the Bank on behalf of Executive (and his spouse and eligible
      dependents, if any, for whom coverage had been provided during the COBRA
      continuation period) if Executive (and such spouse and dependents, if any)
      had been eligible for such retiree medical coverage from the end of
      Executive’s COBRA continuation period until the third anniversary of
      Executive’s termination of employment, calculated on the assumption that
      the cost of such coverage would remain unchanged from that in effect for
      the year in which such lump sum is paid. Such lump sum amount shall be
      calculated by an actuary selected by the Bank and paid in cash as soon as
      administratively practicable following the expiration of Executive’s COBRA
      continuation period and shall not be subject to reduction or forfeiture by
      reason of any coverage for which Executive may thereafter become eligible
      by reason of subsequent employment or otherwise. In addition, as soon as
      administratively practicable following Executive’s termination of
      employment, provided that Executive shall have complied with the
      conditions set forth in Section 10, the Bank shall pay to Executive a lump
      sum amount equal on an after-tax basis to the present value of the sum of
      (1) the amount that Executive and the Bank would have paid, had he
      remained employed, for coverage under the Bank’s group long-term
      disability policy from the date of Executive’s termination of employment
      until the third anniversary of Executive’s termination of employment,
      calculated on the assumption that the cost of such coverage would remain
      unchanged from that in effect for the year in which Executive’s
      termination occurred; and (2) the amount that Executive and the Bank would
      have paid to continue Executive’s group life insurance coverage, had he
      remained employed, from the date of Executive’s termination of employment
      until the third anniversary of Executive’s termination of employment,
      calculated on the assumption that the cost of such coverage would remain
      unchanged from that in effect for the year in which Executive’s
      termination occurred. For purposes of this Section, present value shall be
      calculated on the basis of the discount rate set forth in the Bank’s
      qualified retirement plan for the determination of lump sum
      payments.

 

15

If any
payment or benefit under this Section 7(f) is based on Base Salary or other
level of compensation or benefits at the time of Executive’s termination and if
a reduction in such Base Salary or other level of compensation or benefit was
the basis for Executive’s termination for Good Reason, then the Base Salary or
other level of compensation in effect before such reduction shall be used to
calculate payments or benefits under this Section 7(f).

(g) Other
Terms Relating to Certain Terminations of Employment. Whether
a termination is deemed to be at or within two years after a Change in Control
for purposes of Sections 7(c), (d), (e), or (f) is determined at the date of
termination, regardless of whether the Change in Control had occurred at the
time a notice of termination was given. In the event Executive’s employment
terminates for any reason set forth in Section 7(b) through (f), Executive will
be entitled to the benefit of any terms of plans or agreements applicable to
Executive which are more favorable than those specified in this Section 7
(except in the case of annual incentives in lieu of which amounts are paid
hereunder). Amounts payable under this Section 7 following Executive’s
termination of employment, other than those expressly payable on a deferred
basis, will be paid as promptly as practicable after such a termination of
employment, and such amounts payable under Section 7(e) or 7(f) will be paid in
no event later than 15 days after Executive’s termination of employment unless
not determinable within such period. 

8. Definitions
Relating to Termination Events.

	
       

      (a)
	
       

      “Cause.”
      For purposes of this Agreement, “Cause” shall mean:

	
       

      (i) 
	
       

      Executive’s
      willful and continued failure to substantially perform his duties
      hereunder (other than any such failure resulting from incapacity due to
      physical or mental illness or Disability or any failure after the issuance
      of a notice of termination by Executive for Good Reason) which failure is
      demonstrably and materially damaging to the financial condition or
      reputation of the Company, the Bank and/or their affiliates, and which
      failure continues more than 48 hours after a written demand for
      substantial performance is delivered to Executive by the Board, which
      demand specifically identifies the manner in which the Board believes that
      Executive has not substantially performed his duties hereunder and the
      demonstrable and material damage caused thereby; or

	
       

      (ii) 
	
       

      the
      willful engaging by Executive in conduct which is demonstrably and
      materially injurious to the Company, the Bank or their affiliates,
      monetarily or otherwise.

 

No act,
or failure to act, on the part of Executive shall be deemed “willful” unless
done, or omitted to be done, by Executive not in good faith and without
reasonable belief that his action or omission was in the best interest of the
Bank and the Company. Notwithstanding the foregoing, Executive shall not be
deemed to have been terminated for Cause unless and until there shall have been
delivered to Executive a copy of the resolution duly adopted by the affirmative
vote of not less than three-quarters (3/4) of the entire membership of the Board
at a meeting of the Board (after reasonable notice to Executive and an
opportunity for Executive, together with Executive’s counsel, to be heard before
the Board) finding that, in the good faith opinion of the Board, Executive was
guilty of conduct set forth above in this definition and specifying the
particulars thereof in detail.

(b) “Change
in Control.” For
purposes of this Agreement, a “Change in Control” shall be deemed to have
occurred if, during the term of this Agreement: 

 

	
      (i) 
	
      

      the
      Company, or the mutual holding company parent of the Company, whether it
      remains a mutual holding company or converts to the stock form of
      organization (the "Mutual Holding Company"), merges into or consolidates
      with another corporation, or merges another corporation into the Company
      or the Mutual Holding Company, and as a result, with respect to the
      Company, less than a majority of the combined voting power of the
      resulting corporation immediately after the merger or consolidation is
      held by "Persons" as such term is used for purposes of Section 13(d) or
      14(d) of the Securities Exchange Act of 1934, as amended (the "Exchange
      Act") who were stockholders of the Company immediately before the merger
      or consolidation or, with respect to the Mutual Holding Company, less than
      a majority of the directors of the resulting corporation immediately after
      the merger or consolidation were directors of the Mutual Holding Company
      immediately before the merger or
consolidation;

 

16

 

	
      (ii) 
	
      

      following
      a conversion of the Mutual Holding Company to the stock form of
      organization, any Person (other than any trustee or other fiduciary
      holding securities under an employee benefit plan of the Bank or the
      Company), becomes the "Beneficial Owner" (as defined in Rule 13d-3 under
      the Exchange Act), directly or indirectly, of securities of the resulting
      corporation representing 25% or more of the combined voting power of the
      resulting corporation's then-outstanding securities;

       

	
      (iii) 
	
      

      during
      any period of twenty-four months (not including any period prior to the
      Effective Date of this Agreement), individuals who at the beginning of
      such period constitute the board of directors of the Company, and any new
      director (other than (A) a director nominated by a Person who has entered
      into an agreement with the Company to effect a transaction described in
      Sections (8)(b)(i), (ii) or (iv) hereof, (B) a director nominated by any
      Person (including the Company) who publicly announces an intention to take
      or to consider taking actions (including, but not limited to, an actual or
      threatened proxy contest) which if consummated would constitute a Change
      in Control or (C) a director nominated by any Person who is the Beneficial
      Owner, directly or indirectly, of securities of the Company representing
      25% or more of the combined voting power of the Company's securities)
      whose election by the board of directors of the Company or nomination for
      election by the Company's stockholders was approved in advance by a vote
      of at least two-thirds (2/3) of the directors then still in office who
      either were directors at the beginning of the period or whose election or
      nomination for election was previously so approved, cease for any reason
      to constitute at least a majority thereof;

       

	
      (iv) 
	
      

      the
      stockholders of the Company approve a plan of complete liquidation of the
      Company or an agreement for the sale or disposition by the Company of all
      or substantially all of the Company's assets; or

       

	
      (v) 
	
      

      the
      board of directors of the Company adopts a resolution to the effect that,
      for purposes of this Agreement, a Change in Control has
      occurred.

 

(c) “Compensation
Accrued at Termination.” For
purposes of this Agreement, “Compensation Accrued at Termination” means the
following: 

 

	
       

      (i) 
	
       

      The
      unpaid portion of annual base salary at the rate payable, in accordance
      with Section 4(a) hereof, at the date of Executive’s termination of
      employment, pro rated through such date of termination, payable in
      accordance with the Company’s regular pay schedule;

	
       

      (ii) 
	
       

      All
      vested, nonforfeitable amounts owing or accrued at the date of Executive’s
      termination of employment under any compensation and benefit plans,
      programs, and arrangements set forth or referred to in Sections 4(b) and
      5(a) and 5(b) hereof (including any earned and vested annual incentive
      compensation and long-term incentive award) in which Executive theretofore
      participated, payable in accordance with the terms and conditions of the
      plans, programs, and arrangements (and agreements and documents
      thereunder) pursuant to which such compensation and benefits were granted
      or accrued; and

	
       

      (iii) 
	
       

      Reasonable
      business expenses and disbursements incurred by Executive prior to
      Executive’s termination of employment, to be reimbursed to Executive, as
      authorized under Section 5(f), in accordance the Company’s reimbursement
      policies as in effect at the date of such
termination.

 

(d) “Disability.” For
purposes of this Agreement, “Disability” shall have the meaning ascribed to it
by Section 409A of the Code and the regulations thereunder.

(e) “Good
Reason.” For
purposes of this Agreement, “Good Reason” shall mean, without Executive’s
express written consent, the occurrence of any of the following circumstances
unless, in the case of subsections (i), (iv), (vi) or (viii) hereof, such
circumstances are fully corrected prior to the date of termination specified in
the notice of termination given in respect thereof:

17

	
      (i) 
	
      the
      assignment to Executive of duties inconsistent with Executive’s position
      and status as Executive Vice President, or an alteration, adverse to
      Executive, in Executive’s position and status as Executive Vice President
      or in the nature of Executive’s duties, responsibilities, and authorities
      or conditions of Executive’s employment from those relating to Executive
      position and status as Executive Vice President (excluding changes in
      assignments permitted under Section 3 and excluding inadvertent actions
      which are promptly remedied); except the foregoing shall not constitute
      Good Reason if occurring in connection with the termination of Executive’s
      employment for Cause, Disability, Retirement, as a result of Executive’s
      death, or as a result of action by or with the consent of Executive; for
      purposes of this Section 8(e), references to the Bank or the Company (and
      to the Board of the Bank or the Company and to the stockholders of the
      Company) refer to the ultimate parent company (and its board and
      stockholders) succeeding the Company (or the Mutual Holding Company)
      following an acquisition in which the corporate existence of the Company
      (or the Mutual Holding Company) continues, in accordance with Section
      12(b);

	
       

      (ii) 
	
       

      (A)
      a reduction by the Bank in Executive’s Base Salary, (B) the setting of
      Executive’s annual target incentive opportunity or payment of earned
      annual incentive not in conformity with Section 4 hereof, (C) a change in
      compensation or benefits not in conformity with Section 5, or (D) a
      reduction, after a Change in Control, in perquisites from the level of
      such perquisites as in effect immediately prior to the Change in Control
      or as the same may have been increased from time to time after the Change
      in Control, except for across-the-board perquisite reductions similarly
      affecting all senior executives of the Bank and all senior executives of
      any Person in control of the Company;

	
       

      (iii) 
	
       

      the
      relocation of the principal place of Executive’s employment to a site that
      is outside of a fifty mile radius of his principal place of employment
      prior to such relocation; for this purpose, required travel on the Bank’s
      business will not constitute a relocation so long as the extent of such
      travel is substantially consistent with Executive’s customary business
      travel obligations in periods prior to the Effective
  Date;

	
       

      (iv) 
	
       

      the
      failure by the Bank to pay to Executive any portion of Executive’s
      compensation or to pay to Executive any portion of an installment of
      deferred compensation under any deferred compensation program of the Bank
      within seven days of the date such compensation is due;

	
       

      (v) 
	
       

      the
      failure by the Bank to continue in effect any material compensation or
      benefit plan in which Executive participated immediately prior to a Change
      in Control, unless an equitable arrangement (embodied in an ongoing
      substitute or alternative plan) has been made with respect to such plan,
      or the failure by the Bank to continue Executive’s participation therein
      (or in such substitute or alternative plan) on a basis not materially less
      favorable, both in terms of the amounts of compensation or benefits
      provided and the level of Executive’s participation relative to other
      participants, as existed at the time of the Change in
    Control;

	
       

      (vi) 
	
       

      the
      failure of the Bank to obtain a satisfactory agreement from any successor
      to the Bank, the Company or the Mutual Holding Company to fully assume the
      Bank’s and the Company’s obligations and to perform under this Agreement,
      as contemplated in Section 12(b) hereof, in a form reasonably acceptable
      to Executive; or

	
       

      (vii) 
	
       

      any
      other failure by the Bank or the Company to perform any material
      obligation under, or breach by the Bank or the Company of any material
      provision of, this Agreement;

 

provided,
however, that a forfeiture under Section 10(f), (g), or (h) shall not constitute
“Good Reason.” 

18

(f) “Potential
Change in Control.” For
purposes of this Agreement, a “Potential Change in Control” shall be deemed to
have occurred if, during the term of this Agreement:

 

	
      (i) 
	
      the
      Company enters into an agreement, the consummation of which would result
      in the occurrence of a Change in Control;

	
       

      (ii) 
	
       

      any
      Person (including the Company) publicly announces an intention to take or
      to consider taking actions which if consummated would constitute a Change
      in Control; or

	
       

      (iii) 
	
       

      the
      Board adopts a resolution to the effect that, for purposes of this
      Agreement, a Potential Change in Control has
occurred.

 

9. Rabbi
Trust Obligation Upon Potential Change in Control; Excise Tax-Related
Provisions.

 

(a) Rabbi
Trust Funded Upon Potential Change in Control. In the
event of a Potential Change in Control or Change in Control, the Bank or the
Company shall, not later than 15 days thereafter, have established one or more
rabbi trusts and shall deposit therein cash in an amount determined by the
actuary for the Bank’s qualified Retirement Plan on the basis of the interest
rate and mortality assumptions set forth in said qualified Retirement Plan,
which is sufficient to provide for full payment of all potential obligations of
the Bank and the Company that would arise assuming consummation of a Change in
Control, or has arisen in the case of an actual Change in Control, and a
subsequent termination of Executive's employment under Section 7(e) or (f). Such
rabbi trust(s) shall be irrevocable and shall provide that neither the Bank nor
the Company may, directly or indirectly, use or recover any assets of the
trust(s) until such time as all obligations which potentially could arise
hereunder have been settled and paid in full, subject only to the claims of
creditors of the Bank and the Company in the event of insolvency or bankruptcy
of the Bank or the Company; provided, however, that if no Change in Control has
occurred within two years after such Potential Change in Control, such rabbi
trust(s) shall at the end of such two-year period become revocable and may
thereafter be revoked by the Bank.

(b) Gross-up
If Excise Tax Would Apply. In the
event Executive becomes entitled to any amounts or benefits payable in
connection with a Change in Control or other change in control (whether or not
such amounts are payable pursuant to this Agreement) (the “Severance Payments”),
if any of such Severance Payments are subject to the tax (the “Excise Tax”)
imposed by Section 4999 of the Internal Revenue Code (or any similar federal,
state or local tax that may hereafter be imposed) (the “Code”), the Bank shall
pay to Executive at the time specified in Section 9(b)(iii) hereof an additional
amount (the “Gross-Up Payment”) such that the net amount retained by Executive,
after deduction of any Excise Tax on the Total Payments (as hereinafter defined)
and any federal, state and local income tax and Excise Tax upon the payment
provided for by Section 9(b)(i), shall be equal to the Total Payments.

 

	
      (i) 
	
      For
      purposes of determining whether any of the Severance Payments will be
      subject to the Excise Tax and the amount of such Excise
    Tax:

	
       
	
      (A)    any
      other payments or benefits received or to be received by Executive in
      connection with a Change in Control or Executive’s termination of
      employment (whether pursuant to the terms of this Agreement or any other
      plan, arrangement or agreement with the Bank, any Person whose actions
      result in a Change in Control or any Person affiliated with the Bank or
      such Person) (which, together with the Severance Payments, constitute the
      “Total Payments”) shall be treated as “parachute payments” within the
      meaning of Section 280G(b)(2) of the Code, and all “excess parachute
      payments” within the meaning of Section 280G(b)(1) of the Code shall be
      treated as subject to the Excise Tax, unless in the opinion of
      nationally-recognized tax counsel selected by Executive such other
      payments or benefits (in whole or in part) do not constitute parachute
      payments, or such excess parachute payments (in whole or in part)
      represent reasonable compensation for services actually rendered within
      the meaning of Section 280G(b)(4) of the Code in excess of the base amount
      within the meaning of Section 280G(b)(3) of the Code, or are otherwise not
      subject to the Excise Tax;

       

 

19

 

	
       
	
      (B)    the
      amount of the Total Payments which shall be treated as subject to the
      Excise Tax shall be equal to the lesser of (x) the total amount of the
      Total Payments and (y) the amount of excess parachute payments within the
      meaning of Section 280G(b)(1) of the Code (after applying Section
      9(b)(i)(A) hereof); and

       

	
       
	
      (C)    the
      value of any non-cash benefits or any deferred payments or benefit shall
      be determined by a nationally-recognized accounting firm selected by
      Executive in accordance with the principles of Sections 280G(d)(3) and (4)
      of the Code.

	
      (ii) 
	
      For
      purposes of determining the amount of the Gross-Up Payment, Executive
      shall be deemed to pay federal income taxes at the highest marginal rate
      of federal income taxation in the calendar year in which the Gross-Up
      Payment is to be made and state and local income taxes at the highest
      marginal rate of taxation in the state and locality of Executive’s
      residence on the Date of Termination, net of the maximum reduction in
      federal income taxes which could be obtained from deduction of such state
      and local taxes. In the event that the Excise Tax is subsequently
      determined to be less than the amount taken into account hereunder at the
      time of termination of Executive’s employment, Executive shall repay to
      the Bank within ten days after the time that the amount of such reduction
      in Excise Tax is finally determined the portion of the Gross-Up Payment
      attributable to such reduction (plus the portion of the Gross-Up Payment
      attributable to the Excise Tax and federal and state and local income tax
      imposed on the Gross-Up Payment being repaid by Executive if such
      repayment results in a reduction in Excise Tax and/or federal and state
      and local income tax deduction) plus interest on the amount of such
      repayment at the rate provided in Section 1274(b)(2)(B) of the Code. In
      the event that the Excise Tax is determined to exceed the amount taken
      into account hereunder at the time of the termination of Executive’s
      employment (including by reason of any payment the existence or amount of
      which cannot be determined at the time of the Gross-Up Payment), the Bank
      shall make an additional gross-up payment in respect of such excess within
      ten days after the time that the amount of such excess is finally
      determined.

       

	
      (iii) 
	
      The
      payments provided for in this Section 9(b) shall be made not later than
      the fifteenth day following the date of Executive’s termination of
      employment; provided, however, that if the amount of such payments cannot
      be finally determined on or before such day, the Bank shall pay to
      Executive on such day an estimate, as determined in good faith by the
      Bank, of the minimum amount of such payments and shall pay the remainder
      of such payments (together with interest at the rate provided in Section
      1274(b)(2)(B) of the Code) as soon as the amount thereof can be determined
      but in no event later than the thirtieth day after the date of Executive’s
      termination of employment. In the event that the amount of the estimated
      payments exceeds the amount subsequently determined to have been due, such
      excess shall be payable by Executive on the fifteenth day after the demand
      by the Bank.

       

	
      (iv) 
	
      All
      determinations under this Section 9(b) shall be made at the expense of the
      Bank by a nationally recognized public accounting firm selected by
      Executive, and such determination shall be binding upon Executive and the
      Bank.

       

	
      (v) 
	
      Executive
      hereby agrees with the Bank and the Company and any successor thereto to
      in good faith consider and take steps commonly used to minimize or
      eliminate any tax liability or costs that would otherwise be created by
      the tax indemnification provisions set forth in this Section 9(b) if
      requested to do so by the Company or the Bank or any successor thereto;
      provided, however, that the foregoing language shall neither require
      Executive to take or not take any specific action in furtherance thereof
      nor contravene, limit or remove any right or privilege provided thereto
      under this Agreement.

 

10. Non-Competition
and Non-Disclosure; Executive Cooperation; Non-Disparagement; Certain
Forfeitures.

20

(a) Non-Competition. In
consideration for the compensation and benefits provided under this Agreement,
including without limitation, the compensation and benefits provided under
Sections 7(e) and (f), without the consent in writing of the Board, Executive
will not, at any time during the Term and for a period of two years following
termination of Executive’s employment for any reason, acting alone or in
conjunction with others, directly or indirectly (i) engage (either as owner,
investor, partner, stockholder, employer, employee, consultant, advisor, or
director) in any business of any savings bank, savings and loan association,
savings and loan holding company, bank, bank holding company, or other
institution engaged in the business of accepting deposits or making loans, or
any direct or indirect subsidiary or affiliate of any such entity, that conducts
business in any county in which the Company or the Bank maintains an office as
of Executive’s date of termination or had plans to open an office within six
months after Executive’s date of termination ; (ii) induce any customers of the
Bank or any of its affiliates with whom Executive has had contacts or
relationships, directly or indirectly, during and within the scope of his
employment with the Bank, to curtail or cancel their business with the Bank or
any such affiliate; (iii) induce, or attempt to influence, any employee of the
Bank or any of its affiliates to terminate employment; or (iv) solicit, hire or
retain as an employee or independent contractor, or assist any third party in
the solicitation, hire, or retention as an employee or independent contractor,
any person who during the previous twelve months was an employee of the Bank or
any affiliate; provided, however, that the limitation contained in clause (i)
above shall not apply if Executive’s employment is terminated as a result of a
termination by the Company without Cause within two years following a Change in
Control or is terminated by Executive for Good Reason within two years following
a Change in Control and, provided further, that activities engaged in by or on
behalf of the Bank are not restricted by this covenant. The provisions of
subparagraphs (i), (ii), (iii), and (iv) above are separate and distinct
commitments independent of each of the other subparagraphs. It is agreed that
the ownership of not more than one percent of the equity securities of any
company having securities listed on an exchange or regularly traded in the
over-the-counter market shall not, of itself, be deemed inconsistent with clause
(i) of this Section 10(a).

(b) Non-Disclosure;
Ownership of Work.
Executive shall not, at any time during the Term and thereafter (including
following Executive’s termination of employment for any reason), disclose, use,
transfer, or sell, except in the course of employment with or other service to
the Bank or the Company, any proprietary information, secrets, organizational or
employee information, or other confidential information belonging or relating to
the Bank or the Company and its affiliates and customers so long as such
information has not otherwise been disclosed or is not otherwise in the public
domain, except as required by law or pursuant to legal process. In addition,
upon termination of employment for any reason, Executive will return to the
Company or its affiliates all documents and other media containing information
belonging or relating to the Bank and the Company or its affiliates.

(c) Cooperation
With Regard to Litigation.
Executive agrees to cooperate with the Bank and the Company, during the Term and
thereafter (including following Executive’s termination of employment for any
reason), by making himself available to testify on behalf of the Bank or the
Company or any subsidiary or affiliate of the Bank or the Company, in any
action, suit, or proceeding, whether civil, criminal, administrative, or
investigative, and to assist the Bank and the Company, or any subsidiary or
affiliate of the Company, in any such action, suit, or proceeding, by providing
information and meeting and consulting with the Board or its representatives or
counsel, or representatives or counsel to the Bank or the Company, or any
subsidiary or affiliate of the Company, as requested. The Bank agrees to
reimburse the Executive, on an after tax basis, for all expenses actually
incurred in connection with his provision of testimony or
assistance.

(d) Non-Disparagement.
Executive shall not, at any time during the Term and thereafter, make statements
or representations, or otherwise communicate, directly or indirectly, in
writing, orally, or otherwise, or take any action which may, directly or
indirectly, disparage the Bank or the Company or any of its subsidiaries or
affiliates or their respective officers, directors, employees, advisors,
businesses or reputations. Notwithstanding the foregoing, nothing in this
Agreement shall preclude Executive from making truthful statements that are
required by applicable law, regulation or legal process.

(e) Release
of Employment Claims.
Executive agrees, as a condition to receipt of any termination payments and
benefits provided for in Sections 6 and 7 herein (other than Compensation
Accrued at Termination), that he will execute a general release agreement, in
substantially the form set forth in Attachment A to this Agreement, releasing
any and all claims arising out of Executive’s employment other than enforcement
of this Agreement and rights to indemnification under any agreement, law, Bank
or Company organizational document or policy, or otherwise.

21

(f) Forfeiture
of Outstanding Options. The
provisions of Sections 6 and 7 notwithstanding, if Executive willfully and
materially fails to substantially comply with any restrictive covenant under
this Section 10 or willfully and materially fails to substantially comply with
any material obligation under this Agreement, all options to purchase common
stock granted by the Company and then held by Executive or a transferee of
Executive shall be immediately forfeited and thereupon such options shall be
cancelled. Notwithstanding the foregoing, Executive shall not forfeit any option
unless and until there shall have been delivered to him, within six months after
the Board (i) had knowledge of conduct or an event allegedly constituting
grounds for such forfeiture and (ii) had reason to believe that such conduct or
event could be grounds for such forfeiture, a copy of a resolution duly adopted
by a majority affirmative vote of the membership of the Board (excluding
Executive) at a meeting of the Board called and held for such purpose (after
giving Executive reasonable notice specifying the nature of the grounds for such
forfeiture and not less than 30 days to correct the acts or omissions complained
of, if correctable, and affording Executive the opportunity, together with his
counsel, to be heard before the Board) finding that, in the good faith opinion
of the Board, Executive has engaged and continues to engage in conduct set forth
in this Section 10(f) which constitutes grounds for forfeiture of Executive’s
options; provided, however, that if any option is exercised after delivery of
such notice and the Board subsequently makes the determination described in this
sentence, Executive shall be required to pay to the Company an amount equal to
the difference between the aggregate value of the shares acquired upon such
exercise at the date of the Board determination and the aggregate exercise price
paid by Executive. Any such forfeiture shall apply to such options
notwithstanding any term or provision of any option agreement. In addition,
options granted to Executive on or after the Effective Date, and gains resulting
from the exercise of such options, shall be subject to forfeiture in accordance
with the Company’s standard policies relating to such forfeitures and clawbacks,
as such policies are in effect at the time of grant of such
options.

(g) Forfeiture
of Certain Bonuses and Profits. If the
Company is required to prepare an accounting restatement due to the material
noncompliance of the Company, as a result of misconduct, with any financial
reporting requirement under the securities laws, and if Executive, knowingly or
through gross negligence, caused or failed to prevent such misconduct, Executive
shall reimburse the Bank for (i) any bonus or other incentive based or
equity-based compensation received by Executive during the 12-month period
following the first public issuance or filing with the Securities and Exchange
Commission (whichever first occurs) of the financial document embodying such
financial reporting requirement; and (ii) any profits realized from the sale of
securities of the Company during that 12-month period.

(h) Forfeiture
Due to Regulatory Restrictions.
Anything in this Agreement or the SERPS to the contrary notwithstanding, (i) any
payments made pursuant to this Agreement or the SERPS shall be subject to and
conditioned upon compliance with 12 U.S.C. §1828(k) and any regulations
promulgated thereunder; and (ii) payments contemplated to be made by the Bank
pursuant to this Agreement or the SERPS shall not be immediately payable to the
extent such payments are barred or prohibited by an action or order issued by
the Connecticut Banking Commissioner or the Federal Deposit Insurance
Corporation.

(i) Survival. The
provisions of this Section 10 shall survive the termination of the Term and any
termination or expiration of this Agreement.

11. Governing
Law; Disputes.

(a) Governing
Law. This
Agreement and the rights and obligations of the Company, the Bank and Executive
are governed by and are to be construed, administered, and enforced in
accordance with the laws of the State of Connecticut, without regard to
conflicts of law principles. If under the governing law, any portion of this
Agreement is at any time deemed to be in conflict with any applicable statute,
rule, regulation, ordinance, or other principle of law, such portion shall be
deemed to be modified or altered to the extent necessary to conform thereto or,
if that is not possible, to be omitted therefrom. The invalidity of any such
portion shall not affect the force, effect, and validity of the remaining
portion thereof. If any court determines that any provision of Section 10 of
this Agreement is unenforceable because of the duration or geographic scope of
such provision, it is the parties’ intent that such court shall have the power
to modify the duration or geographic scope of such provision, as the case may
be, to the extent necessary to render the provision enforceable and, in its
modified form, such provision shall be enforced.

22

(b) Reimbursement
of Expenses in Enforcing Rights. Upon
submission of invoices, the Bank shall promptly pay or reimburse all reasonable
costs and expenses (including fees and disbursements of counsel and pension
experts) incurred by Executive or Executive’s surviving spouse in seeking to
interpret this Agreement or enforce rights pursuant to this Agreement or in any
proceeding in connection therewith brought by Executive or Executive’s surviving
spouse, whether or not Executive or Executive’s surviving spouse is ultimately
successful in enforcing such rights or in such proceeding; provided, however,
that no reimbursement shall be owed with respect to expenses relating to any
unsuccessful assertion of rights or proceeding if and to the extent that such
assertion or proceeding was initiated or maintained in bad faith or was
frivolous, as determined in accordance with Section 11(c) or a court having
jurisdiction over the matter, in which case any amounts previously paid by the
Bank shall be promptly repaid. 

(c) Dispute
Resolution.

 

	
       
	
      (i)    Negotiation.
      The Bank and the Company (collectively, the “Employer”) and Executive
      shall attempt in good faith to resolve any dispute arising out of or
      relating to this Agreement promptly by negotiation between the Chief
      Executive Officer of the Bank and Executive. Any party may give the other
      party written notice of any dispute in accordance with the notice
      procedures set forth in Section 12(d). Within 15 days after delivery of
      the notice, the receiving party shall submit to the other, in accordance
      with the notice procedures set forth in Section 12(d), a written response.
      The notice and response shall include a statement of that party’s position
      and summary of arguments supporting that position. Within 30 days after
      delivery of the initial notice, the parties shall meet at a mutually
      acceptable time and place, and thereafter as often as they reasonably deem
      necessary, to attempt to resolve the dispute. All negotiations pursuant to
      this clause (i) are confidential and shall be treated as compromise and
      settlement negotiations for purposes of applicable rules of
      evidence.

       

	
       
	
      (ii)    Mediation.
      If the dispute has not been resolved by negotiation as provided herein
      within 45 days after delivery of the initial notice of negotiation, or if
      the parties failed to meet within 30 days after delivery, the parties
      shall endeavor to settle the dispute by mediation under the CPR Mediation
      Procedure then currently in effect; provided, however, that if one party
      fails to participate in the negotiation as provided herein, the other
      party can initiate mediation prior to the expiration of the 45 days.
      Unless otherwise agreed, the parties will select a mediator from the CPR
      Panels of Distinguished Neutrals.

       

	
       
	
      (iii)    Arbitration.
      Any dispute arising under or in connection with this Agreement which has
      not been resolved by mediation as provided herein within 45 days after
      initiation of the mediation procedure, shall be finally resolved by
      arbitration in accordance with the CPR Rules for Non-Administered
      Arbitration then currently in effect, by three independent and impartial
      arbitrators, of whom each party shall designate one; provided, however,
      that if one party fails to participate in either the negotiation or
      mediation as agreed herein, the other party can commence arbitration prior
      to the expiration of the time periods set forth above. The arbitration
      shall be governed by the Federal Arbitration Act, 9 U.S.C. §§1-16, and
      judgment upon the award rendered by the arbitrators may be entered by any
      court having jurisdiction thereof. The place of arbitration shall be
      Hartford, Connecticut. For purposes of entering any judgment upon an award
      rendered by the arbitrators, the Company, the Bank and Executive hereby
      consent to the jurisdiction of any or all of the following courts: (i) the
      United States District Court for the District of Connecticut, (ii) any of
      the courts of the State of Connecticut, or (iii) any other court having
      jurisdiction. The Company, the Bank and Executive hereby agree that a
      judgment upon an award 

 

23

 

	 	
      rendered
      by the arbitrators may be enforced in other jurisdictions by suit on the
      judgment or in any other manner provided by law. Subject to Section 11(b)
      of this Agreement, the Bank shall bear all costs and expenses arising in
      connection with any arbitration proceeding pursuant to this Section 11(c).
      Notwithstanding any provision in this Section 11(c), Executive shall be
      entitled to seek specific performance of Executive's right to be paid
      during the pendency of any dispute or controversy arising under or in
      connection with this Agreement. 

(d) Interest
on Unpaid Amounts. Any
amount which has become payable pursuant to the terms of this Agreement or any
decision by arbitrators or judgment by a court of law pursuant to this Section
11 but which has not been timely paid shall bear interest at the prime rate in
effect at the time such amount first becomes payable, as quoted by the
Bank.

12. Miscellaneous.

(a) Integration. This
Agreement cancels and supersedes any and all prior employment agreements and
understandings between the parties hereto with respect to the employment of
Executive by the Bank, any parent or predecessor company, and the Company’s
subsidiaries during the Term, except for contracts relating to compensation
under executive compensation and employee benefit plans of the Bank. This
Agreement constitutes the entire agreement among the parties with respect to the
matters herein provided, and no modification or waiver of any provision hereof
shall be effective unless in writing and signed by the parties hereto. Executive
shall not be entitled to any payment or benefit under this Agreement which
duplicates a payment or benefit received or receivable by Executive under any
prior agreements and understandings or under any benefit or compensation plan of
the Bank which are in effect.

(b) Successors;
Transferability. The
Bank and the Company shall require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of the Bank or the Company to expressly assume and agree
to perform this Agreement in the same manner and to the same extent that the
Bank and the Company would be required to perform it if no such succession had
taken place. 

As used
in this Agreement, “Bank “and “Company” shall mean the Bank and the Company
respectively as hereinbefore defined and any successor to its or their business
and/or assets as aforesaid which assumes and agrees to perform this Agreement by
operation of law, or otherwise and, in the case of an acquisition of the Bank or
the Company in which the corporate existence of the Bank or the Company, as the
case may be, continues, the ultimate parent company following such acquisition.
Subject to the foregoing, the Bank and the Company may transfer and assign this
Agreement and the Bank’s and the Company’s rights and obligations hereunder.
Neither this Agreement nor the rights or obligations hereunder of the parties
hereto shall be transferable or assignable by Executive, except in accordance
with the laws of descent and distribution or as specified in Section
12(c).

(c) Beneficiaries.
Executive shall be entitled to designate (and change, to the extent permitted
under applicable law) a beneficiary or beneficiaries to receive any compensation
or benefits provided hereunder following Executive’s death.

(d) Notices.
Whenever under this Agreement it becomes necessary to give notice, such notice
shall be in writing, signed by the party or parties giving or making the same,
and shall be served on the person or persons for whom it is intended or who
should be advised or notified, by Federal Express or other similar overnight
service or by certified or registered mail, return receipt requested, postage
prepaid and addressed to such party at the address set forth below or at such
other address as may be designated by such party by like notice:

 

	
      If
      to the Bank or the Company:

	
      ROCKVILLE
      BANK

      1645
      Ellington Road

      South
      Windsor, CT 06074

      Att:
      Chief Executive Officer

 

24

	
      If
      to Executive:

      Joseph
      F. Jeamel, Jr.

	
      c/o
      Ira Goldman, Esq.

      Shipman
      & Goodwin LLP

      One
      Constitution Plaza

      Hartford,
      CT 06103-1919

If the
parties by mutual agreement supply each other with telecopier numbers for the
purposes of providing notice by facsimile, such notice shall also be proper
notice under this Agreement. In the case of Federal Express or other similar
overnight service, such notice or advice shall be effective when sent, and, in
the cases of certified or registered mail, shall be effective two days after
deposit into the mails by delivery to the U.S. Post Office.

(e) Reformation. The
invalidity of any portion of this Agreement shall not be deemed to render the
remainder of this Agreement invalid.

(f) Headings. The
headings of this Agreement are for convenience of reference only and do not
constitute a part hereof.

(g) No
General Waivers. The
failure of any party at any time to require performance by any other party of
any provision hereof or to resort to any remedy provided herein or at law or in
equity shall in no way affect the right of such party to require such
performance or to resort to such remedy at any time thereafter, nor shall the
waiver by any party of a breach of any of the provisions hereof be deemed to be
a waiver of any subsequent breach of such provisions. No such waiver shall be
effective unless in writing and signed by the party against whom such waiver is
sought to be enforced. 

(h) No
Obligation To Mitigate.
Executive shall not be required to seek other employment or otherwise to
mitigate Executive’s damages upon any termination of employment, and any
compensation or benefits received from any other employment of Executive shall
not mitigate or reduce the obligations of the Bank and the Company or the rights
of Executive hereunder, except that, to the extent Executive receives from a
subsequent employer health or other insurance benefits that are similar to the
benefits referred to in Section 5(b) hereof, any such benefits to be provided by
the Bank to Executive following the Term shall be correspondingly
reduced.

(i) Offsets;
Withholding. The
amounts required to be paid by the Bank to Executive pursuant to this Agreement
shall not be subject to offset other than with respect to any amounts that are
owed to the Bank by Executive due to his receipt of funds as a result of his
fraudulent activity. The foregoing and other provisions of this Agreement
notwithstanding, all payments to be made to Executive under this Agreement,
including under Sections 6 and 7, or otherwise by the Bank, will be subject to
withholding to satisfy required withholding taxes and other required
deductions.

(j) Successors
and Assigns. This
Agreement shall be binding upon and shall inure to the benefit of Executive, his
heirs, executors, administrators and beneficiaries, and shall be binding upon
and inure to the benefit of the Bank and the Company and their successors and
assigns.

(k) Counterparts. This
Agreement may be executed in counterparts, each of which shall be deemed to be
an original but all of which together will constitute one and the same
instrument.

13. Indemnification.

All
rights to indemnification by the Bank or the Company now existing in favor of
Executive as provided in the Bank’s and the Company’s Certificate of
Incorporation or By-laws or pursuant to other agreements in effect on

25

or
immediately prior to the Effective Date shall continue in full force and effect
from the Effective Date (including all periods after the expiration of the
Term), and the Bank and the Company shall also advance expenses for which
indemnification may be ultimately claimed as such expenses are incurred to the
fullest extent permitted under applicable law, subject to any requirement that
Executive provide an undertaking to repay such advances if it is ultimately
determined that Executive is not entitled to indemnification; provided, however,
that any determination required to be made with respect to whether Executive’s
conduct complies with the standards required to be met as a condition of
indemnification or advancement of expenses under applicable law and the Bank’s
or the Company’s Certificate of Incorporation, By-laws, or other agreement shall
be made by independent counsel mutually acceptable to Executive and the Company
(except to the extent otherwise required by law). After the date hereof, the
Bank and the Company shall not amend its Certificate of Incorporation or By-laws
or any agreement in any manner which adversely affects the rights of Executive
to indemnification thereunder. Any provision contained herein notwithstanding,
this Agreement shall not limit or reduce any rights of Executive to
indemnification pursuant to applicable law. In addition, the Company will
maintain directors’ and officers’ liability insurance in effect and covering
acts and omissions of Executive during the Term and for a period of six years
thereafter on terms substantially no less favorable than those in effect on the
Effective Date.

IN
WITNESS WHEREOF, Executive has hereunto set his hand and the Bank and the
Company have each caused this instrument to be duly executed as of the Effective
Date.

 

	 	
      ROCKVILLE
      BANK

	 	 
	 	
      By:       
      /s/ Kristen A. Johnson 

	 	
      Name:  
      Kristen A. Johnson

	 	
      Title:    
      Senior Vice President, HR

	 	 
	 	
      ROCKVILLE
      FINANCIAL, INC. 

	 	
      By:       
      /s/ William J. McGurk 

	 	
      Name:  
      William J. McGurk

	 	
      Title:
      

	 	 
	 	 
	 	/s/
      Joseph F. Jeamel, Jr. 
	 	
      Joseph
      F. Jeamel, Jr.

 

26

 

ATTACHMENT
A

RELEASE

We advise
you to consult an attorney before you sign this Release. You have until the date
which is seven (7) days after the Release is signed and returned to Rockville
Bank to change your mind and revoke your Release. Your Release shall not become
effective or enforceable until after that date.

In
consideration for the benefits provided under your Employment Agreement with
Rockville Bank (the “Employment Agreement”), and more specifically enumerated in
Exhibit 1 hereto, by your signature below, you, for yourself and on behalf of
your heirs, executors, agents, representatives, successors and assigns, hereby
release and forever discharge the Rockville Financial, Inc., its past and
present parent corporations, subsidiaries, divisions, subdivisions, affiliates
and related companies (collectively, the “Company”) and the Company’s past,
present and future agents, directors, officers, employees, representatives,
successors and assigns (hereinafter “those associated with the Company”) with
respect to any and all claims, demands, actions and liabilities, whether in law
or equity, which you may have against the Company or those associated with the
Company of whatever kind, including but not limited to those arising out of your
employment with the Company or the termination of that employment. You agree
that this release covers, but is not limited to, claims arising under the Age
Discrimination in Employment Act of 1967, 29 U.S.C. § 621 et
seq., Title
VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et
seq., the
Americans with Disabilities Act of 1990, 42 U.S.C. § 12101 et
seq., the
Fair Labor Standards Act, 29 U.S.C. § 201 et
seq., the
Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1001 et
seq., the
Connecticut Fair Employment Practices Act, C.G.S. § 46a-51 et
seq., and any
other local, state or federal law, regulation or order dealing with
discrimination in employment on the basis of sex, race, color, national origin,
veteran status, marital status, religion, disability, handicap, or age. You also
agree that this release includes claims based on wrongful termination of
employment, breach of contract (express or implied), tort, or claims otherwise
related to your employment or termination of employment with the Company and any
claim for attorneys’ fees, expenses or costs of litigation. 

This
Release covers all claims based on any facts or events, whether known or unknown
by you, that occurred on or before the date of this Release. Except to enforce
this Release, you agree that you will never commence, prosecute, or cause to be
commenced or prosecuted any lawsuit or proceeding of any kind against the
Company or those associated with the Company in any forum and agree to withdraw
with prejudice all complaints or charges, if any, that you have filed against
the Company or those associated with the Company.

Anything
in this Release to the contrary notwithstanding, this Release does not include a
release of: (i) your rights under the Employment Agreement or your right to
enforce the Employment Agreement; (ii) any rights you may have to
indemnification under any agreement, law, Company organizational document or
policy, or otherwise; (iii) any rights you may have to benefits under the
Company’s benefit plans; or (iii) your right to enforce this Release.

By
signing this Release, you further agree as follows:

 

	
      i.
	
      You
      have read this Release carefully and fully understand its
      terms;

	
       

      ii.
	
       

      You
      have had at least twenty-one (21) days to consider the terms of the
      Release;

	
       

      iii.

       
	
       

      You
      have seven (7) days from the date you sign this Release to revoke it by
      written notification to the Company. After this seven (7) day period, this
      Release is final and binding and may not be revoked;

	
       

      iv.
	
       

      You
      have been advised to seek legal counsel and have had an opportunity to do
      so;

	
       

      v.
	
       

      You
      would not otherwise be entitled to the benefits provided under your
      Employment Agreement had you not agreed to execute this Release;
      and

	
       

      vi.
	
       

      Your
      agreement to the terms set forth above is
voluntary

 

 

	
       

      Name:
	 
	
      Signature:
	
      Date:

	
      Received
      By:
	
      Date:

 

 

 

 

 

 

 

 

 

 

 

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