Document:

TERMINATION AGREEMENT AND RELEASE
                        ---------------------------------

     This  Termination  Agreement  and Release (the  "Agreement  and  Release"),
entered into on  ________________  2006,  and effective as of the Effective Date
(defined  below),  by and  between  William  Gilfillan  ("Executive"),  Atlantic
Liberty  Financial Corp.  ("ALFC"),  Atlantic  Liberty  Savings,  F.A.  ("ALS"),
Flushing  Financial   Corporation   ("FFC"),  and  Flushing  Savings  Bank,  FSB
("Flushing Savings Bank").

     WHEREAS,  pursuant to the  Agreement  and Plan of Merger by and between FFC
and ALFC,  dated as of December  __, 2005 (the  "Merger  Agreement"),  ALFC will
merge with FFC (the "FFC  Merger")  (the date of closing of the FFC Merger being
the "Effective Date"); and

     WHEREAS,  Executive is a party to an employment  agreement  with ALFC dated
December 15, 2004 (the "2004  Agreement"),  and is also a party to an employment
agreement with ALS dated October 16, 2002 (the "2002 Agreement"); and

     WHEREAS,  each of the  2002  Agreement  and the  2004  Agreement  has  been
modified by an Addendum,  each  executed as of December 20, 2005  (collectively,
the 2002  Agreement,  the 2004 Agreement and the Addenda shall be referred to as
the "Agreements"); and

     WHEREAS, ALFC, ALS, and Flushing have executed a Settlement Agreement dated
as of December __, 2005 (the  "Settlement  Agreement"),  pursuant to which on or
before  December 31,  2005,  ALFC or ALS will make a payment to Executive in the
amount of $525,000 in consideration of Executive's execution and delivery of the
Letter Agreement; and

     WHEREAS, FFC and Executive have agreed that in exchange for the payments to
Executive set forth herein,  the Agreements  will  terminate in their  entirety,
effective as of the Effective Date, and FFC, Flushing Savings Bank, ALFC and ALS
will no longer have any obligation to Executive under the Agreements, other than
as set forth herein.

     NOW  THEREFORE,  in  consideration  of the  foregoing  and  other  good and
valuable   consideration   the  receipt  and  sufficiency  of  which  is  hereby
acknowledged, it is agreed as follows:

     1. Acknowledgement of Payment,  Release and Waiver. In consideration of the
payment by ALFC or ALS to the Executive of six-hundred,  seventy-nine  thousand,
five-hundred and fifty-eight and 00/100 Dollars  ($679,558.00)  (less applicable
withholding  taxes) (the  "Termination  Payment")  on the  Effective  Date,  the
Executive,  ALFC,  ALS,  FFC and  Flushing  Savings  Bank hereby  agree that the
Agreements  shall be terminated  without any further action of any party hereto.
Except as provided below, upon and as a condition of the receipt by Executive of
the Termination Payment,  Executive,  for himself and for his heirs,  successors
and assigns,  hereby releases  completely and forever  discharges ALFC, ALS, FFC
and Flushing  Savings Bank, and each of their  successors and assigns,  from any
obligation  under the Agreements  and paragraph 4 of the  Settlement  Agreement.
Notwithstanding  the  foregoing,  this  Agreement  and Release  shall not affect
Executive's rights or benefits under any tax-qualified  employee benefit plan of
ALFC or ALS or any split dollar insurance  arrangement  however  contemplated or
provided for in the Settlement Agreement.

<PAGE>n

     2. Waiver of Tax Gross-Up.  The  Executive,  ALFC and ALS hereby agree that
this  Agreement  and  Release  shall  apply to  release,  waive,  discharge  and
otherwise  extinguish any  obligations of ALFC and ALS (or their  successors and
assigns) to indemnify  the  Executive or otherwise  provide the  Executive  with
reimbursement for any excise taxes under Section 4999 of the Code and any income
and related  employment  taxes (including  penalties and interest),  and to hold
ALFC and ALS (or their successors and assigns) harmless with respect to any such
amounts as  contemplated by the provisions of Section 11,  "Additional  Payments
Related to a Change in Control," of the 2004 Agreement,  provided, however, that
the provisions of this Section 2 shall only become  effective upon the Effective
Date.  Notwithstanding anything herein to the contrary, the Executive,  ALFC and
ALS (or their  successors and assigns)  understand and agree that this Agreement
and Release shall not apply to release,  discharge or otherwise  extinguish  any
obligations  of ALFC or ALS (or their  successors  and  assigns) to indemnify or
otherwise reimburse the Executive for any excise taxes under Section 4999 of the
Code in the event that the transactions contemplated by the Merger Agreement are
not consummated in accordance with the express terms of the Merger Agreement. In
the  event  that  the  transactions  contemplated  by the  terms  of the  Merger
Agreement  are not  consummated,  the  Executive,  ALFC and ALS  agree  that the
provisions  of this  Section 2 shall  have no further  effect  and shall  become
inoperative,  but the  provisions of Section 1 hereof shall remain  operative as
written above.

     3. General Provisions.

     (a) Heirs,  Successors and Assigns. The terms of this Agreement and Release
shall be binding  upon the parties  hereto and each of their  respective  heirs,
successors and assigns.

     (b) Final Agreement.  This Agreement and Release,  the Settlement Agreement
and the  Non-Competition  Agreement  referred to therein and attached thereto as
Exhibit A represent the entire  understanding of the parties with respect to the
subject matter hereof and supersedes all prior understandings,  written or oral.
The terms of this  Agreement and Release may be changed,  modified or discharged
only by an instrument in writing signed by the parties  hereto.  Notwithstanding
anything herein to the contrary,  the provisions of the Settlement Agreement and
the  Non-Competition  Agreement  referred  to therein  and  attached  thereto as
Exhibit A shall  survive  the  execution  and  delivery  of this  Agreement  and
Release.

     (c) Governing Law. This Agreement and Release shall be construed,  enforced
and  interpreted in accordance with and governed by the laws of the State of New
York, without reference to its principles of conflicts of law.

     (d) Counterparts. This Agreement and Release may be executed in one or more
counterparts,  each of which counterpart,  when so executed and delivered, shall
be deemed an  original  and all of which  counterparts,  taken  together,  shall
constitute but one and the same agreement.

     (e) Severability. Any term or provision of this Agreement and Release which
is held to be invalid or  unenforceable  shall be  ineffective  to the extent of
such invalidity or  unenforceability  without rendering invalid or unenforceable
the remaining terms and provisions of this Agreement and Release.

                                       2
<PAGE>

     (f) Binding  Agreement.  The  Executive  acknowledges  that by his free and
voluntary act of signing  below,  the Executive  agrees to all the terms of this
Agreement and Release and intends to be legally bound thereby.

     (g) Arbitration.  Any dispute or controversy arising under or in connection
with this  Agreement  shall be settled  exclusively  by  arbitration,  conducted
before a panel of three  arbitrators,  one of whom shall be selected by FFC, one
of whom shall be selected by  Executive  and the third of whom shall be selected
by the other two  arbitrators.  The panel shall sit in a location  within  fifty
(50) miles from the location of the Company, in accordance with the rules of the
Judicial Mediation and Arbitration System (JAMS) then in effect. Judgment may be
entered on the  arbitrators  award in any court having  jurisdiction;  provided,
however,  that Executive  shall be entitled to seek specific  performance of his
right to be paid until the Effective  Date during the pendency of any dispute or
controversy arising under or in connection with this Agreement and Release.

     (h) Legal Fees. If FFC does not pay the second  installment  of the payment
due  under  the  Non-competition  Agreement  on  the  first  anniversary  of the
effective  date of the  merger of ALFC into FFC other than  pursuant  to any cut
back as provided in  paragraph 8 of the  Settlement  Agreement,  all  reasonable
legal fees paid or incurred by Executive  in order to compel such payment  shall
be  reimbursed  by FFC,  provided that the dispute has been settled by Executive
and FFC or resolved in Executive's favor.

                            [signature page follows]

                                       3
<PAGE>

     IN WITNESS  WHEREOF,  the parties  hereto have  signed this  Agreement  and
Release.

EXECUTIVE                                   DATE

-------------------------------             ---------------------------------

ATLANTIC LIBERTY FINANCIAL CORP.            DATE

-------------------------------             ---------------------------------
By:

ATLANTIC LIBERTY SAVINGS, F.A.              DATE

-------------------------------             ---------------------------------
By:

FLUSHING FINANCIAL CORPORATION              DATE

-------------------------------             ---------------------------------
By:

FLUSHING SAVINGS BANK, FSB                  DATE

-------------------------------             ---------------------------------
By:

                                       4ADDENDUM TO
                              EMPLOYMENT AGREEMENT
                                 BY AND BETWEEN
                        ATLANTIC LIBERTY FINANCIAL CORP.
                                       AND
                                BARRY M. DONOHUE

     This Addendum (the  "Addendum") to that certain  employment  agreement (the
"Company Employment Agreement") by and between Atlantic Liberty Financial Corp.,
a Delaware corporation (the "Company"), with its principal administrative office
at 186 Montague  Street,  Brooklyn,  New York  11201-3001,  and Barry M. Donohue
("Executive") is made effective as of this 20th day of December, 2005.

     WHEREAS,  Executive is currently  employed as President and Chief Executive
Officer of the Company,  which owns 100% of the common stock of Atlantic Liberty
Savings, F.A., a federal stock savings association (the "Association"); and

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

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

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

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

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

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

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

<PAGE>

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

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

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

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

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

                                       2
<PAGE>

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

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

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

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

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

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

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

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

                                       3
<PAGE>

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

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

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

     "POST-PAYMENT OBLIGATIONS."

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

                                            EXECUTIVE

Dated: December 20, 2005                    By: /s/ Barry M. Donohue
      ---------------------------               ---------------------------
                                                 Barry M. Donohue

                                            ATLANTIC LIBERTY FINANCIAL CORP.

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

                                       4

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