Document:

EXHIBIT 10.6

                         FLUSHING FINANCIAL CORPORATION
                              EMPLOYMENT AGREEMENT

     This EMPLOYMENT AGREEMENT  ("Agreement") is made and entered into as of the
22nd day of January,  2001, by and between  Flushing  Financial  Corporation,  a
Delaware  corporation having its executive offices at 144=51 Northern Boulevard,
Flushing, New York 11354 (the "Holding Company"), and John R. Buran residing at
[ADDRESS ON FILE] ("Officer").

                                   WITNESSETH:

     WHEREAS,  the Holding Company  considers the  availability of the Officer's
services to be important to the successful management and conduct of the Holding
Company's  business  and  desires to secure for itself the  availability  of his
services; and

     WHEREAS,  for  purposes of securing for the Holding  Company the  Officer's
continued services,  the Board of Directors of the Holding Company ("Board") has
authorized  the  proper  officers  of the  Holding  Company  to  enter  into  an
employment  agreement  with the  Officer on the terms and  conditions  set forth
herein; and

     WHEREAS,  the  Officer  is willing to make his  services  available  to the
Holding Company on the terms and conditions set forth herein;

     NOW,  THEREFORE,  in consideration of the premises and the mutual covenants
and  obligations  hereinafter  set forth,  the  Holding  Company and the Officer
hereby agree as follows:

     Section 1. Employment.

     The Holding  Company  hereby agrees to employ the Officer,  and the Officer
hereby  agrees to accept such  employment,  during the period and upon the terms
and conditions set forth in this Agreement.

     Section 2. Employment Period.

     (a) Except as otherwise  provided in this  Agreement to the  contrary,  the
terms and conditions of this Agreement  shall be and remain in effect during the
period of employment ("Employment Period") established under this section 2. The
Employment Period under this Amended and Restated Employment  Agreement shall be
for a term  commencing on January 22, 2001 and ending on November 21, 2002, plus
such extensions as are provided pursuant to section 2(b) of this Agreement.

     (b) On or as of July 1, 2001,  and on or as of each July 1 thereafter,  the
Employment  Period shall be extended for one additional  year if and only if the
Board shall have authorized the extension of the Employment Period prior to July
1 of such year and the Officer shall not have notified the Holding Company prior
to July 1 of such year that the Employment  Period shall not be so extended.  If
the Board shall not have authorized the extension of the Employment Period prior
to July 1 of any such  year,  or if the  Officer  shall  have  given  notice  of
nonextension  to the  Holding  Company  prior to July 1 of such  year,  then the
Employment  Period  shall not be extended  pursuant to this  section 2(b) at any
time thereafter and shall end on the last day of its term as then in effect.

     (c) Upon the  termination  of the  Officer's  employment  with the  Holding
Company,  the extensions  provided pursuant to section 2(b) shall cease (if such
extensions have not previously ceased).

<PAGE>

     Section 3. Title and Duties.

     On the date on which the  Employment  Period  commences,  the Officer shall
hold the position of Executive  Vice  President/Chief  Operating  Officer of the
Holding  Company  with all of the powers and duties  incident  to such  position
under law and under the by-laws of the Holding  Company.  During the  Employment
Period,  the Officer  shall:  (a) devote his full  business  time and  attention
(other than during weekends,  holidays,  vacation periods and periods of illness
or  approved  leaves of  absence)  to the  business  and  affairs of the Holding
Company and its  subsidiaries  and use his best efforts to advance the interests
of the Holding Company and its  subsidiaries,  including  reasonable  periods of
service as an officer and/or board member of trade  associations,  their related
entities  and  charitable   organizations;   and  (b)  perform  such  reasonable
additional  duties as may be  assigned to him by or under the  authority  of the
Board.  The Officer shall also serve as an officer of Flushing Savings Bank, FSB
(the "Bank") pursuant to the Amended and Restated  Employment  Agreement between
the  Officer  and  the  Bank  dated  as of the  date  hereof  ("Bank  Employment
Agreement").  The Holding Company hereby acknowledges that the Officer's service
under  this  Agreement  shall  not be deemed to  materially  interfere  with the
Officer's performance under the Bank Employment Agreement or otherwise result in
a breach of the Bank Employment Agreement. The Officer shall have such authority
as is necessary or appropriate to carry out his duties under this Agreement.

     Section 4. Compensation.

     In consideration for services rendered by the Officer under this Agreement:

     (a) The Holding Company shall pay to the Officer a salary at an annual rate
equal to the greater of (i)  $210,000 or (ii) such higher  annual rate as may be
prescribed by or under the authority of the Board (the  "Current  Salary").  The
Officer will undergo an annual salary and performance review on or about June 30
of each year commencing in 2001. The Current Salary payable under this section 4
shall be paid in approximately equal installments in accordance with the Holding
Company's customary payroll practices.

     (b) The  Officer  shall  be  eligible  to  participate  in any  bonus  plan
maintained by the Holding Company for its officers and employees. If the Officer
shall earn any bonus  under any bonus plan of the Bank but such bonus  shall not
be paid by the Bank, the Holding Company shall pay such bonus to the Officer.

     Section 5. Employee Benefits and Other Compensation.

     (a) Except as  otherwise  provided in this  Agreement,  the Officer  shall,
during the Employment  Period,  be treated as an employee of the Holding Company
and be  entitled  to  participate  in and  receive  benefits  under the  Holding
Company's   employee  benefit  plans  and  programs,   as  well  as  such  other
compensation  plans  or  programs  (whether  or not  employee  benefit  plans or
programs),  as the Holding Company may maintain from time to time, in accordance
with the terms and  conditions of such  employee  benefit plans and programs and
compensation  plans  and  programs  and with  the  Holding  Company's  customary
practices.

     (b)  The  Holding  Company  shall  provide  the  Officer  with  a  suitable
automobile  for use in the  performance  of the Officer's  duties  hereunder and
shall reimburse the Officer for all expenses incurred in connection therewith.

     (c) The Officer shall be entitled, without loss of pay, to vacation time in
accordance  with the policies  periodically  established by the Board for senior
management  officials  of the Holding  Company,  which shall in no event be less
than four weeks in each calendar  year.  Except as provided in section 7(b), the
Officer shall not be entitled to receive any  additional  compensation  from the
Holding  Company on account of his failure to take a  vacation,  nor shall he be
entitled to accumulate unused vacation from one calendar year to the next except
to the extent  authorized  by the Board for senior  management  officials of the
Holding Company.

<PAGE>

     Section 6. Working Facilities and Expenses.

     The Officer's  principal place of employment shall be at the offices of the
Holding Company in Queens County,  New York or at such other location upon which
the Holding  Company and the Officer may  mutually  agree.  The Holding  Company
shall provide the Officer, at his principal place of employment,  with a private
office,   stenographic  services  and  other  support  services  and  facilities
consistent  with  his  position  with  the  Holding  Company  and  necessary  or
appropriate  in  connection  with  the  performance  of his  duties  under  this
Agreement.  The Holding Company shall reimburse the Officer for his ordinary and
necessary  business  expenses,   including,   without  limitation,   travel  and
entertainment  expenses,  incurred in  connection  with the  performance  of his
duties under this  Agreement,  upon  presentation  to the Holding  Company of an
itemized  account  of such  expenses  in such form as the  Holding  Company  may
reasonably require.

     Section 7. Termination with Holding Company Liability.

     (a) In the event that the  Officer's  employment  with the Bank  and/or the
Holding Company shall terminate during the Employment Period on account of:

                    (i) the Officer's voluntary resignation from employment with
               the Bank and the Holding  Company  within one year  following  an
               event that constitutes "Good Reason," which is defined as:

                         (A) the  failure of the Bank to elect or to reelect the
                    Officer  to  serve  as its  Executive  Vice  President/Chief
                    Operating  Officer or such  other  position  as the  Officer
                    consents to hold,  or the failure of the Holding  Company to
                    elect or reelect the Officer to serve as its Executive  Vice
                    President/Chief  Operating Officer or such other position as
                    the Officer consents to hold;

                         (B) the failure of the Bank or the  Holding  Company to
                    cure a material  adverse  change made by it in the Officer's
                    functions,  duties, or responsibilities in his position with
                    the Bank or the Holding Company, respectively,  within sixty
                    days following written notice thereof from the Officer;

                         (C) the failure of the Bank or the  Holding  Company to
                    maintain the Officer's  principal place of employment at its
                    offices in Queens County, New York or at such other location
                    upon which the Bank or the  Holding  Company and the Officer
                    may mutually agree;

                         (D) the  failure of the Board to extend the  Employment
                    Period  within the times  provided  in  section  2(b) or the
                    failure  of the  Bank's  board of  directors  to extend  the
                    Employment Period under the Bank Employment Agreement within
                    the  times  provided  in  section  2(b) of  such  Agreement;
                    provided,  however,  that such failure shall not  constitute
                    Good  Reason   until  the  earlier  of  30  days  after  any
                    determination  by the Board or the Bank's board of directors
                    that the  Employment  Period  shall  not be so  extended  or
                    August 1 of such year;

                         (E) the failure of the Bank or the  Holding  Company to
                    cure a material breach of the Bank  Employment  Agreement or
                    this   Agreement  by  the  Bank  or  the  Holding   Company,
                    respectively,  within sixty days  following  written  notice
                    thereof from the Officer; or

                         (F) after a Change of  Control  (as  defined in section
                    10),  the  failure of any  successor  company to the Bank to
                    assume the Bank  Employment  Agreement  or of any  successor
                    company to the Holding Company to assume this Agreement.

<PAGE>

                    (ii) the discharge of the Officer by the Bank or the Holding
               Company  for any reason  other than (A) for "Cause" as defined in
               section  8(b) of this  Agreement  or (B) the  Officer's  death or
               "Disability" as defined in section 9(a) of this Agreement; or

                    (iii) the Officer's  voluntary  resignation  from employment
               with the Bank and the Holding  Company for any reason  within the
               sixty-day  period  commencing  six months  following  a Change of
               Control as defined in section 10;

then the Holding  Company  shall  provide the benefits and pay to the Officer as
liquidated damages the amounts provided for under section 7(b).

     (b) Upon the  termination of the Officer's  employment with the Bank and/or
the Holding Company under  circumstances  described in section 7(a), the Holding
Company shall pay and provide to the Officer:

                    (i) his earned but unpaid  Current  Salary as of the date of
               termination,  plus an amount  representing any accrued but unpaid
               vacation time and floating holidays;

                    (ii) if the Officer's termination of employment occurs after
               a Change of Control, a pro rata portion of his bonus for the year
               of termination, determined by multiplying the amount of the bonus
               earned by the  Officer  for the  preceding  calendar  year by the
               number  of  full  months  of   employment   during  the  year  of
               termination,  and dividing by 12. If the Officer's termination of
               employment occurs prior to a Change of Control,  the Compensation
               Committee of the Bank or of the Holding  Company may, in its sole
               discretion,   award   the   Officer  a  bonus  for  the  year  of
               termination,  in an amount determined by such Committee either at
               the time of  termination  of employment or at the time bonuses to
               active employees are awarded, which the Holding Company shall pay
               to the Officer promptly after it has been awarded;

                    (iii) the  benefits,  if any,  to which he is  entitled as a
               former  employee  under  the  Bank's  and the  Holding  Company's
               employee  benefit plans and programs and  compensation  plans and
               programs;

                    (iv) continued health and welfare benefits  (including group
               life,  disability,  medical and dental benefits),  in addition to
               that  provided  pursuant  to  section  7(b)(iii),  to the  extent
               necessary to provide  coverage for the Officer for the  Severance
               Period (as  defined  in section  7(c)).  Such  benefits  shall be
               provided  through  the  purchase  of  insurance,   and  shall  be
               equivalent  to  the  health  and  welfare   benefits   (including
               cost-sharing  percentages)  provided to active  employees  of the
               Bank and the Holding  Company (or any successor  thereof) as from
               time to time in effect  during the  Severance  Period.  Where the
               amount  of such  benefits  is  based  on  salary,  they  shall be
               provided  to the  Officer  based on the  highest  annual  rate of
               Current  Salary  achieved  by the Officer  during the  Employment
               Period.  If the Officer had  dependent  coverage in effect at the
               time of his termination of employment, he shall have the right to
               elect to  continue  such  dependent  coverage  for the  Severance
               Period.  The benefits to be provided  under this  paragraph  (iv)
               shall cease to the extent that substantially  equivalent benefits
               are  provided  to  the  Officer  (and/or  his  dependents)  by  a
               subsequent employer of the Officer;

                    (v) if the  Officer  is age 55 or  older  at the  end of the
               Severance  Period,  he shall be  entitled to elect  coverage  for
               himself  and his  dependents  under the  Bank's  and the  Holding
               Company's  retiree  medical and retiree life insurance  programs.
               Such coverage, if elected,  shall commence upon the expiration of
               the  Severance  Period,  without  regard to whether  the  Officer
               commences his pension  benefit at such time,  and shall  continue
               for the life of each of the  Officer  and his  spouse  and for so
               long as any other of his covered dependents remain eligible.  The
               coverage  and  cost-sharing  percentage  of the  Officer  and his
               dependents  under such  programs  shall be those in effect  under
               such  programs  on the  date  of  the  Officer's  termination  of
               employment with the Bank or the Holding Company, and shall not be
               adversely modified without the Officer's written consent; and

<PAGE>

                    (vi)  within  thirty  days  following  his   termination  of
               employment with the Bank or the Holding Company,  a cash lump sum
               payment in an amount  equal to the Current  Salary and bonus that
               the Officer would have earned pursuant to sections 4(a) and 4(b),
               respectively, if he had continued working for the Holding Company
               and the Bank for the Severance  Period  (basing such bonus on the
               highest  bonus,  if any,  paid to the  Officer by the Bank or the
               Holding  Company  under  section  4(b)  of  the  Bank  Employment
               Agreement or this Agreement within the three-year period prior to
               the date of termination).

The lump sum payable  pursuant to clause (vi) of this section 7(b) is to be paid
in lieu of all other  payments of Current  Salary and bonus  provided  for under
this Agreement  relating to the period  following any such termination and shall
be payable without proof of damages and without regard to the Officer's efforts,
if any,  to  mitigate  damages.  The  Holding  Company  and the  Officer  hereby
stipulate  that the damages  which may be incurred by the Officer  following any
such termination of employment are not capable of accurate measurement as of the
date first above written and that the payments and benefits  provided under this
section  7(b)  are  reasonable  under  the  circumstances  as a  combination  of
liquidated damages and severance benefits.

     (c) For purposes of section 7, the Severance Period means:

                    (i) in the case of termination  of employment  prior to July
               22, 2001, a period of 6 months;

                    (ii) in the case of  termination  of  employment on or after
               July 22,  2001,  but  prior  to the  second  anniversary  of this
               Agreement, a period of 12 months;

                    (iii) in the case of  termination  of employment on or after
               the second anniversary of this Agreement,  a period of 24 months;
               and

                    (iv)  notwithstanding  clauses (i),  (ii), and (iii) of this
               section 7(c), in the case of  termination  of employment  after a
               Change of Control,  a period of 24 months,  without regard to the
               date of such termination of employment.

     Section 8.  Termination  for Cause or  Voluntary  Resignation  Without Good
Reason.

     (a) In the event that the  Officer's  employment  with the Holding  Company
shall terminate during the Employment Period on account of:

                    (i) the discharge of the Officer by the Holding  Company for
               Cause; or

                    (ii) the Officer's  voluntary  resignation  from  employment
               with  the  Holding   Company   for   reasons   other  than  those
               constituting a Good Reason;

then the Holding Company shall have no further obligations under this Agreement,
other  than (A) the  payment to the  Officer  of his  earned but unpaid  Current
Salary  as of the  date  of the  termination  of his  employment;  and  (B)  the
provision  of such other  benefits,  if any, to which he is entitled as a former
employee under the Bank's and the Holding  Company's  employee benefit plans and
programs and compensation plans and programs.

     (b) For purposes of this  Agreement,  the term "Cause"  means the Officer's
(i) willful failure to perform his duties under this Agreement or under the Bank
Employment  Agreement  and  failure  to cure  such  failure  within  sixty  days
following  written notice thereof from the Holding  Company or the Bank, or (ii)
intentional  engagement in dishonest  conduct in connection with his performance
of services for the Holding Company or the Bank or conviction of a felony.

<PAGE>

     Section 9. Disability or Death.

     (a) The Officer's employment with the Holding Company may be terminated for
"Disability"  if the Officer shall become disabled or  incapacitated  during the
Employment Period to the extent that he has been unable to perform the essential
functions of his employment for 270 consecutive  days,  subject to the Officer's
right to receive  from the Holding  Company  following  his  termination  due to
Disability  the following  percentages  of his Current Salary under section 4 of
this Agreement:  100% for the first six months,  75% for the next six months and
60% thereafter  for the remaining  term of the  Employment  Period (less in each
case any benefits  which may be payable to the Officer  under the  provisions of
disability  insurance  coverage  in  effect  for  Bank  and/or  Holding  Company
employees).

     (b) In the event that the  Officer's  employment  with the Holding  Company
shall terminate  during the Employment  Period on account of death,  the Holding
Company shall promptly pay the Officer's  designated  beneficiaries  or, failing
any  designation,  his  estate a cash lump sum  payment  equal to his earned but
unpaid Current Salary.

     (c) In the event of the Officer's  termination  of employment on account of
death or Disability prior to a Change of Control, the Compensation  Committee of
the Bank or of the  Holding  Company  may,  in its sole  discretion,  award  the
Officer a bonus for the year of  termination,  in an amount  determined  by such
Committee either at the time of termination of employment or at the time bonuses
to active  employees  are awarded,  in which case the Holding  Company shall pay
such  bonus  to  the  Officer  or,  in  the  event  of  death,   his  designated
beneficiaries  or estate,  as the case may be, promptly after it is awarded.  In
the event of the  Officer's  termination  of  employment  on account of death or
Disability after a Change of Control, the Holding Company shall promptly pay the
Officer,  or in the event of death, his designated  beneficiaries or estate,  as
the case may be, a pro rata  portion  of his bonus for the year of  termination,
determined by multiplying  the amount of the bonus earned by the Officer for the
preceding  calendar year by the number of full months of  employment  during the
year of termination, and dividing by 12.

     Section 10. Change of Control.

     For purposes of this Agreement, the term "Change of Control" means:

     (a) the acquisition of all or  substantially  all of the assets of the Bank
or the  Holding  Company by any person or entity,  or by any persons or entities
acting in concert;

     (b) the  occurrence of any event if,  immediately  following  such event, a
majority  of the  members of the Board of  Directors  of the Bank or the Holding
Company or of any  successor  corporation  shall  consist of persons  other than
Current Members (for these purposes, a "Current Member" shall mean any member of
the Board of  Directors  of the Bank or the Holding  Company as of July 18, 2000
and any  successor  of a Current  Member whose  nomination  or election has been
approved by a majority of the Current Members then on the Board of Directors);

     (c) the  acquisition  of beneficial  ownership,  directly or indirectly (as
provided in Rule 13d-3 of the  Securities  Exchange Act of 1934 (the "Act"),  or
any successor  rule),  of 25% or more of the total combined  voting power of all
classes  of stock of the Bank or the  Holding  Company  by any  person  or group
deemed a person under Section 13(d)(3) of the Act; or

     (d) approval by the  stockholders  of the Bank or the Holding Company of an
agreement  providing for the merger or  consolidation of the Bank or the Holding
Company  with  another  corporation  where the  stockholders  of the Bank or the
Holding Company,  immediately  prior to the merger or  consolidation,  would not
beneficially  own,  directly  or  indirectly,  immediately  after the  merger or
consolidation,  shares  entitling such  stockholders to 50% or more of the total
combined voting power of all classes of stock of the surviving corporation.

<PAGE>

     Section 11. Excise Tax Gross-up.

     In the event that the  Officer  becomes  entitled  to one or more  payments
(with a "payment"  including,  without  limitation,  the vesting of an option or
other  non-cash  benefit  or  property,  whether  pursuant  to the terms of this
Agreement  or any other  plan,  arrangement  or  agreement  with the Bank or the
Holding  Company or any  affiliated  company or from or pursuant to the terms of
the  Flushing  Financial   Corporation   Employee  Benefit  Trust)  (the  "Total
Payments"),  which are or become  subject to the tax imposed by Section  4999 of
the Internal  Revenue Code of 1986,  as amended (the "Code") (or any similar tax
that may hereafter be imposed) (the "Excise Tax"), the Holding Company shall pay
to the Officer at the time specified  below an additional  amount (the "Gross-up
Payment")  (which  shall  include,  without  limitation,  reimbursement  for any
penalties  and interest that may accrue in respect of such Excise Tax) such that
the net amount  retained  by the  Officer,  after  reduction  for any Excise Tax
(including  any  penalties  or interest  thereon) on the Total  Payments and any
federal, state and local income or employment tax and Excise Tax on the Gross-up
Payment  provided for by this section 11, but before  reduction for any federal,
state or local income or employment tax on the Total Payments, shall be equal to
the sum of (a) the Total Payments, and (b) an amount equal to the product of any
deductions disallowed for federal, state or local income tax purposes because of
the  inclusion of the Gross-up  Payment in the Officer's  adjusted  gross income
multiplied by the highest  applicable  marginal rate of federal,  state or local
income  taxation,  respectively,  for the  calendar  year in which the  Gross-up
Payment is to be made.

     For  purposes  of  determining  whether any of the Total  Payments  will be
subject to the Excise Tax and the amount of such Excise Tax,

                    (i) 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,  and  except to the  extent  that,  in the  written
               opinion of  independent  compensation  consultants or auditors of
               nationally  recognized  standing  selected by the Holding Company
               and   reasonably   acceptable   to  the   Officer   ("Independent
               Auditors"),  the  Total  Payments  (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,

                    (ii) the amount of the Total Payments which shall be treated
               as  subject to the Excise Tax shall be equal to the lesser of (A)
               the  total  amount  of the Total  Payments  or (B) the  amount of
               excess   parachute   payments   within  the  meaning  of  Section
               280G(b)(1) of the Code (after applying clause (i) above), and

                    (iii) the value of any  non-cash  benefits  or any  deferred
               payment or benefit shall be  determined by the Holding  Company's
               Independent  Auditors  appointed  pursuant to clause (i) above in
               accordance with the principles of Sections  280G(d)(3) and (4) of
               the Code.

     For purposes of determining the amount of the Gross-up Payment, the Officer
shall be deemed (A) to pay federal income taxes at the highest  marginal rate of
federal income  taxation for the calendar year in which the Gross-up  Payment is
to be made;  (B) to pay any  applicable  state  and  local  income  taxes at the
highest  marginal  rate of taxation for the calendar  year in which the Gross-up
Payment is to be made,  net of the maximum  reduction  in federal  income  taxes
which could be obtained from  deduction of such state and local taxes if paid in
such year (determined without regard to limitations on deductions based upon the
amount  of the  Officer's  adjusted  gross  income);  and (C) to have  otherwise
allowable  deductions for federal,  state and local income tax purposes at least
equal to those  disallowed  because of the inclusion of the Gross-up  Payment in
the  Officer's  adjusted  gross  income.  In the event  that the  Excise  Tax is
subsequently  determined to be less than the amount taken into account hereunder
at the time the Gross-up Payment is made, the Officer shall repay to the Holding
Company at the time that the amount of such  reduction  in Excise Tax is finally
determined (but, if previously paid to the taxing authorities,  not prior to the
time the amount of such  reduction  is  refunded  to the  Officer  or  otherwise
realized as a benefit by the Officer)  the portion of the Gross-up  Payment that
would not have been paid if such Excise Tax had been applied in

<PAGE>

initially  calculating the Gross-up Payment, 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 the Gross-up  Payment is made  (including by reason of any
payment the existence or amount of which cannot be determined at the time of the
Gross-up Payment), the Holding Company shall make an additional Gross-up Payment
in respect of such excess (plus any interest and penalties  payable with respect
to such  excess)  at the  time  that  the  amount  of  such  excess  is  finally
determined.

     The Gross-up  Payment provided for above shall be paid on the thirtieth day
(or such  earlier  date as the Excise Tax  becomes due and payable to the taxing
authorities)  after  it has been  determined  that the  Total  Payments  (or any
portion thereof) are subject to the Excise Tax; provided,  however,  that if the
amount of such Gross-up Payment or portion thereof cannot be finally  determined
on or before such day, the Holding  Company shall pay to the Officer on such day
an  estimate,  as  determined  by the  Holding  Company's  Independent  Auditors
appointed  pursuant to clause (i) above,  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.  In the  event  that the  amount of the  estimated  payments
exceeds the amount  subsequently  determined to have been due, such excess shall
constitute a loan by the Holding  Company to the  Officer,  payable on the fifth
day after  demand by the Holding  Company  (together  with  interest at the rate
provided  in  Section  1274(b)(2)(B)  of the  Code).  If more than one  Gross-up
Payment is made, the amount of each Gross-up Payment shall be computed so as not
to duplicate  any prior  Gross-up  Payment.  The Holding  Company shall have the
right to control all  proceedings  with the  Internal  Revenue  Service that may
arise in connection with the determination and assessment of any Excise Tax and,
at its sole  option,  the  Holding  Company  may  pursue or  forego  any and all
administrative  appeals,  proceedings,  hearings and conferences with any taxing
authority  in respect of such Excise Tax  (including  any  interest or penalties
thereon);  provided,  however,  that the Holding Company's control over any such
proceedings  shall be limited to issues with respect to which a Gross-up Payment
would be  payable  hereunder  and the  Officer  shall be  entitled  to settle or
contest  any other issue  raised by the  Internal  Revenue  Service or any other
taxing  authority.  The Officer shall  cooperate with the Holding Company in any
proceedings  relating to the  determination and assessment of any Excise Tax and
shall not take any position or action that would materially  increase the amount
of any Gross-up Payment hereunder.

     Section 12. No Effect on Employee Benefit Plans or Compensation Programs

     Except as expressly  provided in this  Agreement,  the  termination  of the
Officer's employment during the term of this Agreement or thereafter, whether by
the Holding  Company or by the  Officer,  shall have no effect on the rights and
obligations of the parties hereto under the Holding  Company's  employee benefit
plans or programs or  compensation  plans or programs  (whether or not  employee
benefit  plans or programs)  that the Holding  Company may maintain from time to
time.

     Section 13. Successors and Assigns.

     This  Agreement  will  inure  to the  benefit  of and be  binding  upon the
Officer, his legal representatives and estate or intestate distributees, and the
Holding  Company and its  successors  and assigns,  including  any  successor by
merger or consolidation  or a statutory  receiver or any other person or firm or
corporation to which all or substantially  all of the assets and business of the
Holding Company may be sold or otherwise transferred.

     Section 14. Notices.

     Any  communication  to a party required or permitted  under this Agreement,
including any notice, direction, designation, consent, instruction, objection or
waiver,  shall be in writing and shall be deemed to have been given at such time
as it is delivered  personally,  or five days after  mailing if mailed,  postage
prepaid, by registered or certified mail, return receipt requested, addressed to
such party at the  address  listed  below or at such  other  address as one such
party may by written notice specify to the other party:

<PAGE>

          If to the Officer:

               John R. Buran
               [ADDRESS ON FILE]

          If to the Holding Company:

               Flushing Financial Corporation
               144-51 Northern Boulevard
               Flushing, New York 11354
               Attention: Secretary

     Section 15. Severability.

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

     Section 16. Waiver.

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

     Section 17. Counterparts.

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

     Section 18. Governing Law.

     This  Agreement  shall  be  governed  by  and  construed  and  enforced  in
accordance  with  the  laws of the  State  of New  York,  without  reference  to
conflicts of law principles.

     Section 19. Headings.

     The headings of sections in this Agreement are for convenience of reference
only and are not intended to qualify the meaning of any section.  Any  reference
to a section number shall refer to a section of this Agreement, unless otherwise
stated.

     Section 20. Entire Agreement; Modifications.

     This instrument  contains the entire  agreement of the parties  relating to
the subject  matter  hereof and  supersedes  in its  entirety  any and all prior
agreements,  understandings  or  representations  relating to the subject matter
hereof,  other than the Bank  Employment  Agreement.  No  modifications  of this
Agreement  shall be valid  unless  made in  writing  and  signed by the  parties
hereto.

     Section 21. Funding.

     The Holding Company may elect in its sole discretion to fund all or part of
its obligations to the Officer under this  Agreement;  provided,  however,  that
should it elect to do so, all assets acquired by the Holding Company to fund its
obligations shall be part of the general assets of the Holding Company and shall
be subject to all claims of the Holding Company's creditors.

<PAGE>

     Section 22. Guarantee.

     The  Holding  Company  guarantees  the  payment  by the Bank of any and all
benefits  and  compensation  to which the  Officer  is  entitled  under the Bank
Employment Agreement.

     Section 23. Non-duplication.

     In the event that the Officer  shall  perform  services for the Bank or any
other direct or indirect subsidiary of the Holding Company,  any compensation or
benefits  provided  to the  Officer by such other  employer  shall be applied to
offset the obligations of the Holding Company hereunder,  it being intended that
this Agreement set forth the aggregate  compensation and benefits payable to the
Officer  for all  services  to the  Holding  Company  and all of its  direct  or
indirect subsidiaries.  The Officer hereby acknowledges that if any payment made
or benefit provided by the Holding Company under this Agreement is also required
to be made or provided  by the Bank under the Bank  Employment  Agreement,  such
payment or benefit by the Holding  Company under this Agreement shall offset the
payment required to be made or benefit required to be provided by the Bank under
the Bank Employment Agreement.

     Section 24. Required Regulatory Provisions.

     Notwithstanding any other provision of this Agreement to the contrary,  any
payments made to the Officer pursuant to this Agreement or otherwise are subject
to and conditioned upon their compliance with 12 U.S.C.  section 1828(k) and any
regulations promulgated thereunder.

     IN WITNESS  WHEREOF,  the parties have signed this  Agreement as of the day
and year first above written.

                                           FLUSHING FINANCIAL CORPORATION

                                           By: /S/ MICHAEL J. HEGARTY
                                              --------------------------------
                                           Name:  Michael J. Hegarty
                                           Title:  President and CEO

                                           /S/ JOHN R. BURAN
                                           -----------------------------------
                                           John R. BuranEXHIBIT 10.7

                           FLUSHING SAVINGS BANK, FSB
                              EMPLOYMENT AGREEMENT

     This EMPLOYMENT AGREEMENT  ("Agreement") is made and entered into as of the
22nd day of January,  2001, by and between Flushing Savings Bank, FSB, a savings
bank organized and existing  under Federal law and having its executive  offices
at 144-51 Northern Boulevard, Flushing, New York 11354 (the "Bank"), and John R.
Buran residing at [ADDRESS ON FILE] ("Officer").

                                   WITNESSETH:

     WHEREAS,  the Bank considers the availability of the Officer's  services to
be important to the successful management and conduct of the Bank's business and
desires to secure for itself the availability of his services; and

     WHEREAS, for purposes of securing for the Bank the Officer's services,  the
Board of Directors of the Bank ("Board") has  authorized the proper  officers of
the Bank to enter into an employment agreement with the Officer on the terms and
conditions set forth herein; and

     WHEREAS,  the Officer is willing to make his services available to the Bank
on the terms and conditions set forth herein;

     NOW,  THEREFORE,  in consideration of the premises and the mutual covenants
and obligations  hereinafter set forth, the Bank and the Officer hereby agree as
follows:

     Section 1. Employment.

     The Bank hereby agrees to employ the Officer, and the Officer hereby agrees
to accept such  employment,  during the period and upon the terms and conditions
set forth in this Agreement.

     Section 2. Employment Period.

     (a) Except as otherwise  provided in this  Agreement to the  contrary,  the
terms and conditions of this Agreement  shall be and remain in effect during the
period of employment ("Employment Period") established under this section 2. The
Employment Period under this Amended and Restated Employment  Agreement shall be
for a term  commencing on January 22, 2001 and ending on November 21, 2002, plus
such extensions as are provided pursuant to section 2(b) of this Agreement.

     (b) On or as of July 1, 2001,  and on or as of each July 1 thereafter,  the
Employment  Period shall be extended for one additional  year if and only if the
Board shall have authorized the extension of the Employment Period prior to July
1 of such year and the Officer  shall not have notified the Bank prior to July 1
of such year that the Employment  Period shall not be so extended.  If the Board
shall not have authorized the extension of the Employment Period prior to July 1
of any such year, or if the Officer shall have given notice of  nonextension  to
the Bank prior to July 1 of such year,  then the Employment  Period shall not be
extended  pursuant to this section 2(b) at any time  thereafter and shall end on
the last day of its term as then in effect.

     (c) Upon the  termination  of the Officer's  employment  with the Bank, the
extensions  provided  pursuant to section  2(b) shall cease (if such  extensions
have not previously ceased).

<PAGE>

     Section 3. Title and Duties.

     On the date on which the  Employment  Period  commences,  the Officer shall
hold the position of Executive  Vice  President/Chief  Operating  Officer of the
Bank.  During the  Employment  Period,  the Officer  shall:  (a) devote his full
business  time and attention  (other than during  weekends,  holidays,  vacation
periods and periods of illness or  approved  leaves of absence) to the  business
and  affairs  of the  Bank  and use his  best  efforts  to  advance  the  Bank's
interests,  including  reasonable  periods of service as an officer and/or board
member  of  trade   associations,   their   related   entities  and   charitable
organizations;  and (b)  perform  such  reasonable  additional  duties as may be
assigned to him by or under the  authority of the Board.  The Officer shall have
such authority as is necessary or appropriate to carry out his duties under this
Agreement.

     Section 4. Compensation.

     In consideration for services rendered by the Officer under this Agreement:

     (a) The Bank shall pay to the  Officer a salary at an annual  rate equal to
the greater of (i) $210,000 or (ii) such higher annual rate as may be prescribed
by or under the authority of the Board (the "Current Salary").  The Officer will
undergo an annual salary and performance review on or about June 30 of each year
commencing  in 2001.  The Current  Salary  payable under this section 4 shall be
paid in approximately equal installments in accordance with the Bank's customary
payroll practices.

     (b) The  Officer  shall  be  eligible  to  participate  in any  bonus  plan
maintained by the Bank for its officers and employees.

     Section 5. Employee Benefits and Other Compensation.

     (a) Except as  otherwise  provided in this  Agreement,  the Officer  shall,
during the  Employment  Period,  be treated  as an  employee  of the Bank and be
entitled  to  participate  in and  receive  benefits  under the Bank's  employee
benefit plans and programs, as well as such other compensation plans or programs
(whether or not employee  benefit plans or  programs),  as the Bank may maintain
from time to time, in accordance  with the terms and conditions of such employee
benefit  plans and  programs  and  compensation  plans and programs and with the
Bank's customary practices.

     (b) The Bank shall provide the Officer with a suitable  automobile  for use
in the  performance of the Officer's  duties  hereunder and shall  reimburse the
Officer for all expenses incurred in connection therewith.

     (c) The Officer shall be entitled, without loss of pay, to vacation time in
accordance  with the policies  periodically  established by the Board for senior
management  officials  of the  Bank,  which  shall in no event be less than four
weeks in each calendar  year.  Except as provided in section  7(b),  the Officer
shall not be entitled to receive any  additional  compensation  from the Bank on
account  of his  failure  to  take a  vacation,  nor  shall  he be  entitled  to
accumulate  unused  vacation  from one  calendar  year to the next except to the
extent authorized by the Board for senior management officials of the Bank.

     Section 6. Working Facilities and Expenses.

     The Officer's  principal place of employment shall be at the offices of the
Bank in Queens  County,  New York or at such other  location upon which the Bank
and the Officer may mutually agree.  The Bank shall provide the Officer,  at his
principal place of employment,  with a private office, stenographic services and
other support services and facilities consistent with his position with the Bank
and necessary or  appropriate in connection  with the  performance of his duties
under this Agreement.  The Bank shall reimburse the Officer for his ordinary and
necessary  business  expenses,   including,   without  limitation,   travel  and
entertainment  expenses,  incurred in  connection  with the  performance  of his
duties  under  this  Agreement,  upon  presentation  to the Bank of an  itemized
account of such expenses in such form as the Bank may reasonably require.

<PAGE>

     Section 7. Termination with Bank Liability.

     (a) In the  event  that  the  Officer's  employment  with  the  Bank  shall
terminate during the Employment Period on account of:

               (i) the Officer's voluntary  resignation from employment with the
          Bank  within  one year  following  an  event  that  constitutes  "Good
          Reason," which is defined as:

                    (A) the  failure  of the  Bank to elect  or to  reelect  the
               Officer to serve as its Executive Vice President/Chief  Operating
               Officer or such other position as the Officer consents to hold;

                    (B) the  failure  of the  Bank to  cure a  material  adverse
               change made by the Bank in the Officer's  functions,  duties,  or
               responsibilities  in his position with the Bank within sixty days
               following written notice thereof from the Officer;

                    (C) the  failure  of the  Bank  to  maintain  the  Officer's
               principal  place of employment  at its offices in Queens  County,
               New York or at such  other  location  upon which the Bank and the
               Officer may mutually agree;

                    (D) the failure of the Board to extend the Employment Period
               within the times  provided in section  2(b);  provided,  however,
               that such  failure  shall not  constitute  Good Reason  until the
               earlier of 30 days after any  determination by the Board that the
               Employment  Period  shall not be so  extended or August 1 of such
               year;

                    (E) the  failure  of the Bank to cure a  material  breach of
               this  Agreement by the Bank within sixty days  following  written
               notice thereof from the Officer; or

                    (F) after a Change of Control  (as  defined in Section  10),
               the failure of any  successor  company to the Bank to assume this
               Agreement.

               (ii) the  discharge  of the  Officer  by the Bank for any  reason
          other than (A) for  "Cause"  as  defined  in  section  8(b) or (B) the
          Officer's death or "Disability" as defined in section 9(a); or

               (iii) the Officer's  voluntary  resignation  from employment with
          the Bank for any reason within the  sixty-day  period  commencing  six
          months following a Change of Control as defined in section 10;

then the Bank shall  provide the benefits  and pay to the Officer as  liquidated
damages the amounts provided for under section 7(b).

     (b) Upon the  termination of the Officer's  employment  with the Bank under
circumstances  described in section 7(a),  the Bank shall pay and provide to the
Officer:

               (i) his  earned  but  unpaid  Current  Salary  as of the  date of
          termination,  plus an  amount  representing  any  accrued  but  unpaid
          vacation time and floating holidays;

               (ii) if the Officer's  termination  of employment  occurs after a
          Change of  Control,  a pro rata  portion  of his bonus for the year of
          termination,  determined by multiplying the amount of the bonus earned
          by the Officer for the  preceding  calendar year by the number of full
          months of employment  during the year of termination,  and dividing by
          12. If the  Officer's  termination  of  employment  occurs  prior to a
          Change of Control, the Compensation  Committee of the Bank may, in its
          sole   discretion,   award  the  Officer  a  bonus  for  the  year  of
          termination,  in an amount  determined by such Committee either at the
          time of

<PAGE>

          termination  of employment or at the time bonuses to active  employees
          are awarded, which the Bank shall pay to the Officer promptly after it
          has been awarded;

               (iii) the  benefits,  if any, to which he is entitled as a former
          employee  under the Bank's  employee  benefit  plans and  programs and
          compensation plans and programs;

               (iv) continued health and welfare benefits (including group life,
          disability, medical and dental benefits), in addition to that provided
          pursuant  to section  7(b)(iii),  to the extent  necessary  to provide
          coverage  for the  Officer  for the  Severance  Period (as  defined in
          section 7(c)). Such benefits shall be provided through the purchase of
          insurance,  and shall be equivalent to the health and welfare benefits
          (including  cost-sharing  percentages) provided to active employees of
          the Bank (or any  successor  thereof)  as from  time to time in effect
          during the  Severance  Period.  Where the amount of such  benefits  is
          based on salary,  they shall be provided  to the Officer  based on the
          highest annual rate of Current  Salary  achieved by the Officer during
          the Employment Period. If the Officer had dependent coverage in effect
          at the time of his termination of employment,  he shall have the right
          to elect to continue such dependent coverage for the Severance Period.
          The benefits to be provided  under this  paragraph (iv) shall cease to
          the extent that substantially  equivalent benefits are provided to the
          Officer  (and/or  his  dependents)  by a  subsequent  employer  of the
          Officer;

               (v) if the Officer is age 55 or older at the end of the Severance
          Period,  he shall be  entitled to elect  coverage  for himself and his
          dependents under the Bank's retiree medical and retiree life insurance
          programs.   Such  coverage,  if  elected,   shall  commence  upon  the
          expiration  of the  Severance  Period,  without  regard to whether the
          Officer commences his pension benefit at such time, and shall continue
          for the life of each of the  Officer and his spouse and for so long as
          any of his other covered dependents remain eligible.  The coverage and
          cost-sharing  percentage of the Officer and his dependents  under such
          programs  shall be those in effect under such  programs on the date of
          the Officer's  termination of employment  with the Bank, and shall not
          be adversely modified without the Officer's written consent; and

               (vi) within thirty days  following his  termination of employment
          with the Bank,  a cash  lump sum  payment  in an  amount  equal to the
          Current  Salary and bonus that the Officer would have earned  pursuant
          to sections 4(a) and 4(b),  respectively,  if he had continued working
          for the  Bank  for the  Severance  Period  (basing  such  bonus on the
          highest  bonus,  if any, paid to the Officer by the Bank under section
          4(b) within the three-year  period prior to the date of  termination),
          provided,  however,  that the lump sum payable pursuant to this clause
          (vi) of this section  7(b) shall not exceed three times the  Officer's
          average  annual  compensation  based on the most recent  five  taxable
          years (or such lesser number of taxable years the Officer was employed
          by the Bank).

The lump sum payable  pursuant to clause (vi) of this section 7(b) is to be paid
in lieu of all other  payments of Current  Salary and bonus  provided  for under
this Agreement  relating to the period  following any such termination and shall
be payable without proof of damages and without regard to the Officer's efforts,
if any, to mitigate damages.  The Bank and the Officer hereby stipulate that the
damages which may be incurred by the Officer  following any such  termination of
employment  are not capable of accurate  measurement  as of the date first above
written and that the payments and benefits  provided under this section 7(b) are
reasonable under the  circumstances  as a combination of liquidated  damages and
severance benefits.

     (c) For purposes of section 7, the Severance Period means:

               (i) in the case of  termination  of employment  prior to July 22,
          2001, period of 6 months;

               (ii) in the case of  termination  of  employment on or after July
          22, 2001,  but prior to the second  anniversary of this  Agreement,  a
          period of 12 months;

<PAGE>

               (iii) in the case of  termination  of  employment on or after the
          second anniversary of this Agreement, a period of 24 months; and

               (iv) notwithstanding clauses (i), (ii), and (iii) of this section
          7(c),  in the case of  termination  of  employment  after a Change  of
          Control,  a period of 24  months,  without  regard to the date of such
          termination of employment.

     Section 8.  Termination  for Cause or  Voluntary  Resignation  Without Good
Reason.

     (a) In the  event  that  the  Officer's  employment  with  the  Bank  shall
terminate during the Employment Period on account of:

               (i) the discharge of the Officer by the Bank for Cause; or

               (ii) the Officer's voluntary resignation from employment with the
          Bank for reasons other than those constituting a Good Reason;

then the Bank shall have no further obligations under this Agreement, other than
(A) the payment to the Officer of his earned but unpaid Current Salary as of the
date of the termination of his  employment;  and (B) the provision of such other
benefits,  if any, to which he is entitled as a former employee under the Bank's
employee benefit plans and programs and compensation plans and programs.

     (b) For purposes of this  Agreement,  the term "Cause"  means the Officer's
personal dishonesty,  incompetence, willful misconduct, breach of fiduciary duty
involving personal profit, intentional failure to perform stated duties, willful
violation of any law,  rule,  or  regulation  (other than traffic  violations or
similar  offenses) or final  cease-and-desist  order,  or material breach of any
provision of this Agreement.

     Section 9. Disability or Death.

     (a)  The  Officer's   employment  with  the  Bank  may  be  terminated  for
"Disability"  if the Officer shall become disabled or  incapacitated  during the
Employment Period to the extent that he has been unable to perform the essential
functions of his employment for 270 consecutive  days,  subject to the Officer's
right to receive from the Bank following his  termination  due to Disability the
following  percentages of his Current Salary under section 4 of this  Agreement:
100% for the first six  months,  75% for the next six months and 60%  thereafter
for the remaining term of the Employment  Period (less in each case any benefits
which may be payable to the Officer under the provisions of disability insurance
coverage in effect for Bank employees).

     (b) In the  event  that  the  Officer's  employment  with  the  Bank  shall
terminate  during the  Employment  Period on  account  of death,  the Bank shall
promptly pay the Officer's designated beneficiaries or, failing any designation,
his  estate a cash lump sum  payment  equal to his  earned  but  unpaid  Current
Salary.

     (c) In the event of the Officer's  termination  of employment on account of
death or Disability prior to a Change of Control, the Compensation  Committee of
the Bank may, in its sole discretion,  award the Officer a bonus for the year of
termination,  in an amount  determined by such  Committee  either at the time of
termination  of  employment  or at the time  bonuses  to  active  employees  are
awarded,  in which case the Bank shall pay such bonus to the  Officer or, in the
event of death,  his  designated  beneficiaries  or estate,  as the case may be,
promptly  after it is  awarded.  In the event of the  Officer's  termination  of
employment on account of death or Disability after a Change of Control, the Bank
shall  promptly  pay the  Officer  or,  in the event of  death,  his  designated
beneficiaries or estate, as the case may be, a pro rata portion of his bonus for
the year of  termination,  determined  by  multiplying  the  amount of the bonus
earned by the  Officer  for the  preceding  calendar  year by the number of full
months of employment during the year of termination, and dividing by 12.

<PAGE>

     Section 10. Change of Control.

     For purposes of this Agreement, the term "Change of Control" means:

     (a) the acquisition of all or  substantially  all of the assets of the Bank
or Flushing Financial  Corporation  ("Holding Company") by any person or entity,
or by any persons or entities acting in concert;

     (b) the  occurrence of any event if,  immediately  following  such event, a
majority  of the  members of the Board of  Directors  of the Bank or the Holding
Company or of any  successor  corporation  shall  consist of persons  other than
Current Members (for these purposes, a "Current Member" shall mean any member of
the Board of  Directors  of the Bank or the Holding  Company as of July 18, 2000
and any  successor  of a Current  Member whose  nomination  or election has been
approved by a majority of the Current Members then on the Board of Directors);

     (c) the  acquisition  of beneficial  ownership,  directly or indirectly (as
provided in Rule 13d-3 of the  Securities  Exchange Act of 1934 (the "Act"),  or
any successor  rule),  of 25% or more of the total combined  voting power of all
classes  of stock of the Bank or the  Holding  Company  by any  person  or group
deemed a person under Section 13(d)(3) of the Act; or

     (d) approval by the  stockholders  of the Bank or the Holding Company of an
agreement  providing for the merger or  consolidation of the Bank or the Holding
Company  with  another  corporation  where the  stockholders  of the Bank or the
Holding Company,  immediately  prior to the merger or  consolidation,  would not
beneficially  own,  directly  or  indirectly,  immediately  after the  merger or
consolidation,  shares  entitling such  stockholders to 50% or more of the total
combined voting power of all classes of stock of the surviving corporation.

     Section 11. No Effect on Employee Benefit Plans or Compensation Programs.

     Except as expressly  provided in this  Agreement,  the  termination  of the
Officer's employment during the term of this Agreement or thereafter, whether by
the Bank or by the Officer,  shall have no effect on the rights and  obligations
of the parties  hereto under the Bank's  employee  benefit  plans or programs or
compensation  plans  or  programs  (whether  or not  employee  benefit  plans or
programs) that the Bank may maintain from time to time.

     Section 12. Successors and Assigns.

     This  Agreement  will  inure  to the  benefit  of and be  binding  upon the
Officer, his legal representatives and estate or intestate distributees, and the
Bank and its  successors  and  assigns,  including  any  successor  by merger or
consolidation or a statutory receiver or any other person or firm or corporation
to which all or substantially  all of the assets and business of the Bank may be
sold or otherwise transferred.

     Section 13. Notices.

     Any  communication  to a party required or permitted  under this Agreement,
including any notice, direction, designation, consent, instruction, objection or
waiver,  shall be in writing and shall be deemed to have been given at such time
as it is delivered  personally,  or five days after  mailing if mailed,  postage
prepaid, by registered or certified mail, return receipt requested, addressed to
such party at the  address  listed  below or at such  other  address as one such
party may by written notice specify to the to the other party:

     If to the Officer:

          John R. Buran

          [ADDRESS ON FILE]

<PAGE>

     If to the Bank:
          Flushing Savings Bank, FSB
          144-51 Northern Boulevard
          Flushing, New York 11354
          Attention:  Secretary of the Bank

     Section 14. Severability.

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

     Section 15. Waiver.

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

     Section 16. Counterparts.

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

     Section 17. Governing Law.

     This  Agreement  shall  be  governed  by  and  construed  and  enforced  in
accordance  with (i) the laws of the State of New  York,  without  reference  to
conflicts  of law  principles,  and (ii)  Federal  law,  to the extent  such law
preempts New York law.

     Section 18. Headings.

     The headings of sections in this Agreement are for convenience of reference
only and are not intended to qualify the meaning of any section.  Any  reference
to a section number shall refer to a section of this Agreement, unless otherwise
stated.

     Section 19. Entire Agreement; Modifications.

     This instrument  contains the entire  agreement of the parties  relating to
the subject  matter  hereof and  supersedes  in its  entirety  any and all prior
agreements,  understandings  or  representations  relating to the subject matter
hereof. No modifications of this Agreement shall be valid unless made in writing
and signed by the parties hereto.

     Section 20. Funding.

     The  Bank  may  elect  in its  sole  discretion  to fund all or part of its
obligations to the Officer under this Agreement;  provided, however, that should
it elect to do so, all assets acquired by the Bank to fund its obligations shall
be part of the general  assets of the Bank and shall be subject to all claims of
the Bank's creditors.

     Section 21. Regulatory Action.

     (a)  Notwithstanding any other provision of this Agreement to the contrary,
this Section 21 shall apply at all times during the Employment Period.

<PAGE>

     (b)  If  the  Officer  is  suspended  and/or  temporarily  prohibited  from
participating in the conduct of the affairs of the Bank by a notice served under
12 U.S.C.  1818(e)(3)  and (g)(1),  the Bank's  obligations to the Officer under
this  Agreement  shall be suspended  as of the date of such service  unless such
service is stayed by appropriate proceedings.  If the charges in such notice are
dismissed,  the Bank shall (i) pay the Officer all of the compensation  withheld
while the Bank's  obligations  under this Agreement were so suspended,  and (ii)
reinstate in whole any of its obligations to the Officer which were suspended.

     (c)  If  the  Officer  is  removed  and/or   permanently   prohibited  from
participating  in the conduct of the Bank's  affairs by an order issued under 12
U.S.C.  1818(e)(4) or (g)(1),  all  obligations of the Bank to the Officer under
this Agreement shall terminate as of the effective date of the order, other than
vested rights of the parties accrued as of such effective date,  which shall not
be affected.

     (d) If the Bank is in default (as defined in section 3(x)(1) of the Federal
Deposit  Insurance  Act), all obligations of the Bank under this Agreement shall
terminate  as of the date of such  default,  but this  Section  21(d)  shall not
affect any vested rights of the Officer accrued as of such date of default.

     (e) All  obligations of the Bank under this Agreement  shall be terminated,
except to the extent it is  determined  that  continuation  of the  Agreement is
necessary to the continued  operation of the Bank, (i) by the Regional  Director
of the Office of Thrift  Supervision or his or her designee  ("Director") at the
time the Federal Deposit  Insurance  Corporation or Resolution Trust Corporation
enters into an agreement to provide assistance to or on behalf of the Bank under
the authority  contained in Section 13(c) of the Federal Deposit  Insurance Act;
or (ii) by the Director at the time the Director  approves a supervisory  merger
to  resolve  problems  related  to  operation  of the  Bank or when  the Bank is
determined  by the Director to be in an unsafe or unsound  condition;  provided,
however,  that this  Section  21(e)  shall not affect  any vested  rights of the
Officer accrued as of such date of termination.

     (f) Any  payments  made  to the  Officer  pursuant  to  this  Agreement  or
otherwise  are  subject  to  and  conditioned  upon  their  compliance  with  12
U.S.C.ss.1828(k) and any regulations promulgated thereunder.

<PAGE>

     IN WITNESS  WHEREOF,  the parties have signed this  Agreement as of the day
and year first above written.

                                          FLUSHING SAVINGS BANK, FSB

                                          By: /S/ MICHAEL J. HEGARTY
                                             -------------------------------
                                          Name:  Michael J. Hegarty
                                          Title:  President & C.E.O.

                                          /S/ JOHN R. BURAN
                                          ----------------------------------
                                          John R. Buran

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