Document:

exv10w2

Exhibit 10.2

Execution Copy

EMPLOYMENT AGREEMENT

          This Employment Agreement, dated as of June 23, 2010, (the “Effective Date”) entered
into by and between CA, Inc. (the “Company”) and David Dobson (the “Employee”).

     1. Employment, Duties, Authority and Work Standards. The Company hereby agrees to employ the
Employee on the Effective Date as Executive Vice President, Group Executive-Customer Solutions
Group, with such duties and responsibilities to be determined by the Company from time to time and
the Employee hereby accepts such positions and agrees to serve the Company in such capacities
during the Employment Period (as defined below). The Employee shall report directly to the
Company’s Chief Executive Officer. The Employee’s duties, responsibilities and authority shall be
such duties, responsibilities and authority as are consistent with the above job title and such
other duties, responsibilities and authority as the Chief Executive Officer shall from time to time
specify. The Employee will (a) serve the Company (and such of its subsidiary companies as the
Company may designate) faithfully, diligently and to the best of the Employee’s ability under the
direction of the Chief Executive Officer and (b) devote his full working time and best efforts,
attention and energy to the performance of his duties to the Company.

     2. Laws; Other Agreements. The Employee represents that his employment hereunder will not
violate any law or duty by which he is bound, and will not conflict with or violate any agreement
or instrument to which the Employee is a party or by which he is bound.

     3. Compensation.

          (a) In consideration of services that the Employee will render to the Company, the Company
agrees to pay the Employee, during the Employment Period, the sum of $700,000 per annum (the
“Base Salary”), payable semi-monthly concurrent with the Company’s normal payroll cycle,
subject to annual review by the Compensation and Human Resources Committee of the Board of
Directors (the “Compensation Committee”).

          (b) In addition to the Base Salary, during the Employment Period, the Employee shall have an
opportunity to earn an annual cash bonus (“Annual Bonus”) under the Company’s Annual
Performance Bonus program in accordance with Section 4.4 of the Company’s 2007 Incentive Plan, as
amended and restated, or any successor thereto (the “Incentive Plan”). The Employee’s
Annual Bonus target for the fiscal year commencing on April 1, 2010 shall equal $700,000, to be
pro-rated based on the number days the Employee served the Company during the fiscal year
commencing on April 1, 2010. The Employee’s Annual Bonus targeted amount and the other terms and
conditions of such Annual Performance Bonus shall be subject to determination and approval of the
Compensation Committee. For each fiscal year thereafter the Employee’s Annual Bonus target will be
subject to the review and approval of the Compensation Committee.

          (c) In addition, the Employee shall also be eligible to receive a targeted Long-Term
Performance Bonus of $2,400,000 for the performance period commencing on April 1, 2010

 

 

under the
Company’s Long-Term Performance Bonus program as set forth in Section 4.5 of the
Incentive Plan, provided that such targeted amount and the other terms and conditions of such
Long-Term Performance Bonus shall be subject to determination and approval of the Compensation
Committee in accordance with the terms of the Incentive Plan. For the fiscal year commencing on
April 1, 2010 the Employee’s Long Term Performance Bonus shall be pro-rated based on the number
days the Employee served the Company during the fiscal year commencing on April 1, 2010. For each
fiscal year thereafter the Employee’s Long-Term Performance Bonus target will be subject to the
review and approval of the Compensation Committee.

          (d) All payments to the Employee shall be subject to applicable tax withholding.

     4. Cash Equalization Payment. The Employee shall be entitled to a cash equalization payment
equal to $250,000 (the “Cash Equalization Payment”) in lieu of forfeited benefits
associated with the Employee’s previous employment. The Cash Equalization Payment will be paid to
the Employee in two equal installments. The first installment shall be paid to the Employee on
the first available payroll following his first month of employment and the second installment will
be paid to the Employee on the first available payroll after 6 months of employment with the
Company.

     5. Equity Awards.

(a) As of the Effective Date the Company will grant the Employee 70,000 restricted shares of
CA, Inc. common stock (the “Restricted Stock Award”) which shall vest in
approximately three equal installments on the first, second and third anniversaries of the
Effective Date. The Restricted Stock Award is subject to the terms of the Incentive Plan
and shall be subject to the approval of the Compensation Committee.

(b) As of the Effective Date the Company will grant the Employee 75,000 options to purchase
shares of CA, Inc. common stock with an exercise price equal to fair market value of CA,
Inc. common stock on the Effective Date (the “Option Award”). The Option Award is
an award of non-qualified options which shall vest in approximately three equal installments
on the first, second and third anniversaries of the Effective Date. The Option Award is
subject to the terms of the Incentive Plan and shall be subject to the approval of the
Compensation Committee.

     6. Termination; Termination Payments. Unless the Employee’s employment shall sooner terminate
for any reason pursuant to Section 6 of this Agreement, the “Employment Period” shall
commence on the Effective Date and shall initially terminate on the three-year anniversary from the
Effective Date, except that beginning June 30, 2013 and each anniversary thereafter, the Employment
Period will automatically extend for one year unless either the Employee or the Company gives at
least 90 days’ advanced written notice of non-extension (a “Notice of Non-Extension”). For
purposes of this Agreement, “Employment Period” refers to the period of the Employee’s employment
that is governed by the terms of this Agreement. Upon either party giving the other a Notice of
Non-Extension, the Employment Period will end on June 30th of such year in which notice was given
and the Employee’s employment will no longer be subject to the terms of this Agreement.

          (a) In the event that the Employee’s employment is terminated during the Employment Period
either (i) by the Employee for Good Reason (as defined in Appendix A) or (ii) by the Company
without Cause (as defined in Appendix A), other than as a result of the Employee’s death or
disability (within the meaning of the Company’s long-term disability program then in effect),
subject to the Employee’s execution, delivery and non-revocation, within fifty-five (55) days
following the Termination Date, of a valid and effective release and

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waiver in a form satisfactory
to the Company, the Company shall pay the Employee a lump sum
cash amount equal to $1,400,000, such lump sum payment to be made no later than the sixtieth
(60th) day (or the next following business day if the sixtieth day is not a business day) following
the Termination Date. Additionally, the Employee shall be eligible to receive a portion of any
outstanding Annual Bonus, provided that such payment (i) shall be made only after the end of the
applicable performance cycle, (ii) shall be based upon the actual performance of the Company
achieved as determined in the sole discretion of the Company (provided, however, that negative
discretion shall only be applied if, and to the extent, it is applied generally to the executive
management team) and (iii) shall be pro-rated for the portion of the performance period that has
been completed by the Employee through the Termination Date (provided, however, that nothing herein
shall be construed to accelerate the vesting of any Performance Share Award). The Employee’s
unvested Equity Awards granted pursuant to Sections 5(a) and 5(b) of this Agreement shall
accelerate and vest immediately upon the Termination Date. Notwithstanding the foregoing, in
accordance with the terms of the Incentive Plan, the Employee will have ninety (90) days from the
Termination Date to exercise any vested but unexercised Stock Option Awards as of such date.

          (b) Except as expressly provided herein, upon the termination of the Employee’s employment for
any reason, the rights of the Employee with respect to any shares of restricted stock or options to
purchase shares of CA, Inc. common stock held by the Employee as of the Termination Date, shall be
subject to the applicable rules of the plan or agreement under which such restricted stock or
options were granted as they exist from time to time. In addition, upon the termination of the
Employee’s employment for any reason, the Company shall pay to the Employee his Base Salary through
the Termination Date. Any vested benefits and other amounts that the Employee is otherwise
entitled to receive under any employee benefit plan, policy, practice or program of the Company or
any of its affiliates shall be payable in accordance with such employee benefit plan, policy,
practice or program as the case may be, provided that the Employee shall not be entitled to receive
any other payments or benefits in the nature of severance or termination pay.

          (c) In the event that the Employee resigns other than for Good Reason, is terminated for
Cause, dies or becomes disabled (within the meaning of the Company’s long-term disability program
then in effect) during the Employment Period, no benefits shall be payable to the Employee under
Section 6(a) of this Agreement, but the terms and conditions of Section 6(b) shall remain in
effect.

          (d) If the Employee is a participant in the Company’s Change in Control Severance Policy (the
“CIC Severance Policy”) and a “Change in Control” occurs (as defined therein), any payments
and benefits provided in the CIC Severance Policy that the Employee is entitled to will reduce (but
not below zero) the corresponding payment or benefit provided under this Agreement. It is the
intent of this provision to pay or to provide to the Employee the greater of the two payments or
benefits but not to duplicate them.

     7. Benefits and Perquisites. During the term of the Employee’s employment, the Employee shall
be eligible to participate in all retirement, welfare and benefit plans and perquisites generally
made available to other senior employees of the Company. For the term of this Agreement, the
Company shall provide the Employee with a Company car and driver for the Employee’ commute from
home to work in order to help maintain the confidentiality of business matters and to increase
productivity when traveling.

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     8. No Duration of Employment. Notwithstanding anything else contained in this Agreement to the
contrary, the Company and the Employee each acknowledge and agree that the
Employee’s employment with the Company may be terminated by either the Company upon 60 days’
written notice to the Employee (subject to the provisions of Section 6 of this Agreement) or by the
Employee upon 60 days’ written notice to the Company (subject to the provisions of Section 6 of
this Agreement), at any time and for any reason, with or without cause; provided that this
Agreement may be terminated for Cause immediately upon written notice from the Company to the
Employee; and provided further that the Company may determine to waive all or part of the
Employee’s 60 days’ notice period at its discretion. In addition, this Agreement shall
automatically terminate upon the Employee’s death or disability (determined in accordance with the
Company’s practices and policies). Upon termination of the Employee’s employment for any reason
whatsoever, the Company shall have no further obligations to the Employee other than those set
forth in Section 6 of this Agreement. The effective date of the Employee’s termination of
employment shall be referred to herein as the “Termination Date.”

     9. General.

          (a) Any notice required or permitted to be given under this Agreement shall be made either:

               (i) by personal delivery to the Employee or, in the case of the Company, to the Company’s
principal office (the “Principal Office”) located at One CA Plaza, Islandia, New York
11749, Attention: Executive Vice President — Global Human Resources, or

               (ii) in writing and sent by registered mail, postage prepaid, to the Employee’s residence,
or, in the case of the Company, to the Company’s Principal Office.

          (b) This Agreement shall be binding upon the Employee and his heirs, executors, assigns, and
administrators and shall inure to the benefit of the Company, its successors and assigns and any
subsidiary or parent of the Company.

          (c) This Agreement shall be governed by and construed in accordance with the laws of the State
of New York, without regard to conflict of law principles. Any action relating to this Agreement
shall be brought exclusively in the state or federal courts of the State of New York, County of
Suffolk.

          (d) This Agreement, the Employment and Confidentiality Agreement to be executed by the
Employee on or about the Effective Date and the other documents referred to herein represent the
entire agreement between the Employee and the Company related to the Employee’s employment and
supersede any and all previous oral or written communications, representations or agreements
related thereto. This Agreement may only be modified in writing jointly executed by the Employee
and a duly authorized representative of the Company. This Agreement may be executed in several
counterparts, each of which shall be deemed an original, but all of which shall constitute one and
the same instrument. However, this Agreement will not be effective until the date it has been
executed by both parties.

          (e) The provisions of this Agreement shall be severable in the event that any of the
provisions hereof (including any provision within a single paragraph or sentence) are held by a
court of competent jurisdiction to be invalid, void or otherwise unenforceable in any respect, and
the validity and enforceability of any such provision in every other respect and of the remaining
provisions hereof shall not in any way be impaired and shall remain enforceable to the fullest
extent permitted by law. In addition, waiver by any party hereto of any breach or default by the

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other party of any of the terms of this Agreement shall not operate as a waiver of any other breach
or default, whether similar to or different from the breach or default waived. No waiver
of any provision of this Agreement shall be implied from any course of dealing between the
parties hereto or from any failure by either party hereto to assert its or his rights hereunder on
any occasion or series of occasions.

          (f) The parties agree that this Agreement is intended to comply with the requirements of
Section 409A of the Code and the regulations promulgated thereunder (“Section 409A”) or an
exemption from Section 409A. In the event that after execution of this Agreement either party
makes a determination inconsistent with the preceding sentence, it shall promptly notify the other
party of the basis for its determination. The parties agree to renegotiate in good faith the terms
of this Agreement at no additional cost to the Company, if the Employee determines that this
Agreement as structured would have adverse tax consequences to him under applicable law. To extent
that the Employee would otherwise be entitled to any payment under this Agreement or any plan or
arrangement of the Company or its affiliates, that constitutes “deferred compensation” subject to
Section 409A and that if paid during the six months beginning on the Termination Date would be
subject to the Section 409A additional tax because the Employee is a “specified employee” (within
the meaning of Section 409A and as determined by the Company), the payment will be paid to the
Employee on the earlier of the six-month anniversary of the Termination Date, a change in ownership
or effective control of the Company (within the meaning of Section 409A) or the Employee’s death.
Similarly, to the extent that the Employee would otherwise be entitled to any benefit (other than a
payment) during the six months beginning on the Termination Date that would be subject to the
Section 409A additional tax, the benefit will be delayed and will begin being provided on the
earlier of the six-month anniversary of the Termination Date, a change in ownership or effective
control of the Company (within the meaning of Section 409A) or the Employee’s death. In addition,
any payment or benefit due upon a termination of employment that represents a “deferral of
compensation” within the meaning of Section 409A shall be paid or provided to the Employee only
upon a “separation from service” as defined in Treas. Reg. 1.409A-1(h). To the extent applicable,
each severance payment made under this Agreement shall be deemed to be separate payments, amounts
payable under Section 6 of this Agreement shall be deemed not to be a “deferral of compensation”
subject to Section 409A to the extent provided in the exceptions in Treas. Reg. 1.409A-1(b)(4)
(“short-term deferrals”) and (b)(9) (“separation pay plans,” including the exception under
subparagraph (iii)) and other applicable provisions of Treas. Reg. 1.409A-1 through 1.409A-6.

          Notwithstanding anything to the contrary in this Agreement or elsewhere, any payment or
benefit under this Agreement or otherwise that is exempt from Section 409A pursuant to Treas. Reg.
1.409A-1(b)(9)(v)(A) or (C) shall be paid or provided to the Employee only to the extent that the
expenses are not incurred, or the benefits are not provided, beyond the last day of the Employee’s
second taxable year following the Employee’s taxable year in which the “separation from service”
occurs; and provided further that such expenses shall be reimbursed no later than the last day of
the Employee’s third taxable year following the taxable year in which the Employee’s “separation
from service” occurs. Except as otherwise expressly provided herein, to the extent any expense
reimbursement or the provision of any in-kind benefit under this Agreement is determined to be
subject to Section 409A of the Code, the amount of any such expenses eligible for reimbursement, or
the provision of any in-kind benefit, in one calendar year shall not affect the expenses eligible
for reimbursement in any other calendar year (except for any life-time or other aggregate
limitation applicable to medical expenses), in no event shall any expenses be reimbursed after the
last day of the calendar year following the calendar year in which the Employee incurred such
expenses, and in no event shall any right to reimbursement or

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the provision of any in-kind benefit
be subject to liquidation or exchange for another benefit.

CAUTION TO EXECUTIVE: This Agreement affects important rights. DO NOT sign it unless you have read
it carefully and are satisfied that you understand it completely.

	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	CA, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ David Dobson	 	 	 	By:	 	/s/ Andrew Goodman
	 	 	 	 	 	 	 
	Name:

	 	David Dobson
	 	 	 	 	 	Name:
	 	Andrew Goodman
	 

	 	 	 	 	 	 	 	Title:
	 	 Executive Vice President,
	 

	 	 	 	 	 	 	 	 	 	Global Human Resources
	Date:

	 	June 23, 2010
	 	 	 	 	 	Date:
	 	June 23, 2010

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Appendix A

          For purposes of this Agreement, “Cause” means any of the following:

          (1) The Employee’s continued failure, either due to willful action or as a result of gross
neglect, to substantially perform his duties and responsibilities to the Company and its affiliates
(the “Group”) under this Agreement (other than any such failure resulting from the
Employee’s incapacity due to physical or mental illness) that, if capable of being cured, has not
been cured within thirty (30) days after written notice is delivered to the Employee, which notice
specifies in reasonable detail the manner in which the Company believes the Employee has not
substantially performed his duties and responsibilities.

          (2) The Employee’s engagement in conduct which is demonstrably and materially injurious to the
Group, or that materially harms the reputation or financial position of the Group, unless the
conduct in question was undertaken in good faith on an informed basis with due care and with a
rational business purpose and based upon the honest belief that such conduct was in the best
interest of the Group.

          (3) The Employee’s indictment or conviction of, or plea of guilty or nolo contendere to, a
felony or any other crime involving dishonesty, fraud or moral turpitude.

          (4) The Employee’s being found liable in any SEC or other civil or criminal securities law
action or entering any cease and desist order with respect to such action (regardless of whether or
not he admits or denies liability).

          (5) The Employee’s breach of his fiduciary duties to the Group which may reasonably be
expected to have a material adverse effect on the Group. However, to the extent the breach is
curable, the Company must give the Employee notice and a reasonable opportunity to cure.

          (6) The Employee’s (i) obstructing or impeding, (ii) endeavoring to influence, obstruct or
impede or (iii) failing to materially cooperate with, any investigation authorized by the Board or
any governmental or self-regulatory entity (an “Investigation”). However, the Employee’s
failure to waive attorney-client privilege relating to communications with his own attorney in
connection with an Investigation shall not constitute “Cause”.

          (7) The Employee’s purposely withholding, removing, concealing, destroying, altering or by any
other means falsifying any material which is requested in connection with an Investigation.

          (8) The Employee’s disqualification or bar by any governmental or self-regulatory authority
from serving in the capacity contemplated by this Agreement or his loss of any governmental or
self-regulatory license that is reasonably necessary for him to perform his responsibilities to the
Group under this Agreement, if (a) the disqualification, bar or loss continues for more than 30
days and (b) during that period the Group uses its good faith efforts to cause the disqualification
or bar to be lifted or the license replaced. While any disqualification, bar or loss continues
during the Employee’s employment, he will serve in the capacity contemplated by this Agreement to
whatever extent legally permissible and, if his employment is not permissible, he will be placed on
leave (which will be paid to the extent legally permissible).

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          (9) The Employee’s unauthorized use or disclosure of confidential or proprietary information,
or related materials, or the violation of any of the terms of the Employment and Confidentiality
Agreement executed by the Employee or any Company standard confidentiality policies and procedures,
which may reasonably be expected to have a material adverse effect on the Group and that, if
capable of being cured, has not been cured within thirty (30) days after written notice is
delivered to the Employee by the Company, which notice specifies in reasonable detail the alleged
unauthorized use or disclosure or violation.

          (10) The Employee’s violation of the Group’s (i) Workplace Violence Policy or (ii) policies on
discrimination, unlawful harassment or substance abuse.

          For this definition, no act or omission by the Employee will be “willful” unless it is made by
the Employee in bad faith or without a reasonable belief that his act or omission was in the best
interests of the Group.

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          For purposes of this Agreement, “Good Reason” shall mean any of the following:

          (1) Any material and adverse change in the Employee’s level or Executive Vice President title;

          (2) Any material and adverse reduction in the Employee’s authorities or responsibilities other
than any isolated, insubstantial and inadvertent failure by the Company that is not in bad faith
and is cured promptly on the Employee’s giving the Company notice (and for purposes of
clarification, a change in the number of direct reports will not constitute a material and adverse
reduction in the Employee’s authorities or responsibilities);

          (3) Any material reduction by the Company in the Employee’s Base Salary or target level of
Annual Bonus as set forth in Sections 3(a) and (b), respectively, other than any such reduction
that is (i) part of a broad-based salary reduction program for executive officers of the Company
that does not exceed 10% or (ii) agreed to by the Employee in writing; or

          (4) The Company’s material breach of this Agreement;

          provided that (A) no alleged action, reduction or breach set forth in (1) through (4) above
shall be deemed to constitute “Good Reason” unless such action, reduction or breach remains
uncured, as the case may be, after the expiration of thirty (30) days following delivery to the
Company from the Employee of a written notice, setting forth such course of conduct deemed by the
Employee to constitute “Good Reason”; (B) such written notice must be delivered to the Company
within ninety (90) days after the Employee obtains knowledge of such breach constituting “Good
Reason”; and (C) the Employee must terminate employment within two years after the Employee obtains
knowledge of such breach constituting “Good Reason”. The Company’s placing the Employee on paid
leave for up to ninety (90) consecutive days while it is determining whether there is a basis to
terminate the Employee’s employment for Cause will not constitute “Good Reason”.

9exv10w2

Exhibit 10.2

FORM OF

TRUST AGREEMENT

BETWEEN

MADISON SQUARE FEDERAL SAVINGS BANK

AND

[TRUSTEE]

FOR THE

MADISON SQUARE FEDERAL SAVINGS BANK

EMPLOYEE STOCK OWNERSHIP PLAN TRUST

Effective as of January 1, 2010

 

 

CONTENTS

	 	 	 	 	 
	 	 	Page No.
	Section 1 Creation of Trust 
	 	 	1	 
	 
	 	 	 	 
	Section 2 Investment of Trust Fund and Administrative Powers
of the Trustee 
	 	 	2	 
	 
	 	 	 	 
	Section 3 Compensation and Indemnification of Trustee and
Payment of Expenses and Taxes 
	 	 	7	 
	 
	 	 	 	 
	Section 4 Records and Valuation 
	 	 	8	 
	 
	 	 	 	 
	Section 5 Instructions from Committee 
	 	 	9	 
	 
	 	 	 	 
	Section 6 Change of Trustee 
	 	 	10	 
	 
	 	 	 	 
	Section 7 Miscellaneous 
	 	 	10	 

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     This TRUST AGREEMENT dated as of [date], between MADISON SQUARE FEDERAL SAVINGS BANK, with its
administrative office at 9649 Belair Road, Suite 300, Baltimore, Maryland 21236 (hereinafter called
the “Bank”), and [TRUSTEE], with its administrative office at [address] (hereinafter called the
“Trustee”).

WITNESSETH THAT:

     WHEREAS, the Bank has approved and adopted an employee stock ownership plan for the benefit of
its employees, the Madison Square Federal Savings Bank Employee Stock Ownership Plan (hereinafter
called the “Plan”); and

     WHEREAS, the Bank has authorized the execution of this Trust Agreement and has appointed
[Trustee] as Trustee of the Trust Fund created pursuant to the Plan; and

     WHEREAS, [Trustee] has agreed to act as Trustee and to hold and administer the assets of the
Plan in accordance with the terms of this Trust Agreement.

     NOW, THEREFORE, the Bank and the Trustee agree as follows:

     Section 1. Creation of Trust.

     1.1 Trustee. [Trustee] shall serve as Trustee of the Trust Fund created in accordance
with and in furtherance of the Plan, and shall serve as Trustee until its removal or resignation in
accordance with Section 6.

     1.2 Trust Fund. The Trustee hereby agrees to accept contributions from the Employer,
as defined in the Plan, and amounts transferred from other qualified retirement plans from time to
time in accordance with the terms of the Plan. All such property and contributions, together with
income thereon and increments thereto, shall constitute the “Trust Fund” to be held in accordance
with the terms of the Trust Agreement.

     1.3 Incorporation of Plan. An instrument entitled “Madison Square Federal Savings
Bank Employee Stock Ownership Plan” is incorporated herein by reference, and this Trust Agreement
shall be interpreted consistently with that Plan. All words and phrases defined in that Plan shall
have the same meanings when used in this Trust Agreement, unless otherwise defined in this
Agreement.

     1.4 Name. The name of this trust shall be “Madison Square Federal Savings Bank
Employee Stock Ownership Plan Trust.”

     1.5 Nondiversion of Assets. In no event shall any part of the corpus or income of the
Trust Fund be used for, or diverted to, purposes other than for the exclusive benefit of the
Participants and their Beneficiaries prior to the satisfaction of all liabilities under the Plan,
except to the extent that assets may be returned to the Employer in accordance with the Plan where
the Plan fails to qualify initially under Section 401(a) of the Internal Revenue Code of 1986, as

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amended (the “Code”), or where they are attributable to contributions made by mistake of fact or in
excess of the deductibility allowed under the Code.

     Section 2. Investment of Trust Fund and Administrative Powers of the Trustee.

     2.1 Stock and Other Investments. The basic investment policy of the Plan shall be to
invest primarily in Stock of the Employer for the exclusive benefit of the Participants and their
Beneficiaries. The Committee shall have full and complete investment authority and responsibility
with respect to the purchase, retention, sale, exchange, and pledge of Stock and the payment of
Stock Obligations, and the Trustee shall not deal in any way with Stock except in accordance with
its obligations pursuant to this Trust Agreement and the written instructions of the Committee.
The Trustee shall invest, or keep invested, all or a portion of the Trust Fund in Stock, and shall
pay Stock Obligations out of assets of the Trust Fund, as instructed from time to time by the
Committee. The Trustee shall invest any balance of the Trust Fund (the “Investment Fund”) in such
other property as the Committee, in its sole discretion, shall deem advisable, subject to any
delegation of such investment responsibility pursuant to Section 2.2 of this Agreement. Nothing
contained herein shall provide investment discretion authority or any like responsibility in regard
to the assets of the Trust Fund.

     In connection with instructions to acquire Stock, the Trustee may purchase newly issued or
outstanding Stock from the Employer or any other holders of Stock, including Participants,
Beneficiaries, and Plan fiduciaries. All purchases and sales of Stock shall be made by the Trustee
at fair market value as determined by the Committee in good faith and in accordance with any
applicable requirements under the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”). Such purchases may be made with assets of the Trust Fund, with funds borrowed for this
purpose (with or without guarantees of repayment to the lender by the Employer), or by any
combination of the foregoing.

     Notwithstanding any other provision of this Trust Agreement or the Plan, neither the Committee
nor the Trustee shall make any purchase, sale, exchange, investment, pledge, valuation, or loan, or
take any other action involving those assets for which they are responsible which (i) is
inconsistent with the policy of the Plan and Trust, (ii) is inconsistent with the prudence and
diversification requirements set forth in Sections 404(a)(1)(B) and (C) of ERISA (to the extent
such requirements apply to an employee stock ownership plan and trust), (iii) is prohibited by
Section 406 or 407 of ERISA, or (iv) would impair the qualification of the Plan or the exemption of
the Trust under Sections 401 and 501, respectively, of the Code.

     2.2 Delegation of Investment Responsibility. The Committee may, by written notice and
in accordance with the Plan, direct the Trustee to segregate any portion or all of the Investment
Fund into one or more separate accounts for each of which full investment responsibility will be
delegated to an investment manager appointed in such notice pursuant to Section 402(c)(3) of ERISA
(hereinafter a “Manager”). For any separate account where the Trustee is to maintain custody of
the assets, the Trustee and the Manager shall agree upon procedures for the transmittal of
investment instructions from the Manager to the Trustee, and the Trustee may provide the Manager
with such documents as may be necessary to authorize the Manager to effect transactions directly on
behalf of the segregated account.

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     Further, the Committee may, by written notice and in accordance with the Plan, direct the
Trustee to segregate any portion or all of the Investment Fund into one or more separate accounts
for each of which full investment responsibility will be delegated to an insurance company through
one or more group annuity contracts, deposit administration contracts, or similar contracts, which
may provide for investments in any commingled separate accounts established under such contracts.
An insurance company shall be a Manager with respect to any amounts held under such a contract
except to the extent the insurer’s assets are not deemed assets of the Plan and Trust Fund pursuant
to Section 401(b)(2) of ERISA. The allocation of amounts held under such a contract among the
insurer’s general account and one or more individual or commingled separate accounts shall be
determined by the Committee except as otherwise agreed by the Committee and the insurer.

     Any Manager shall have all of the powers given to the Trustee pursuant to Section 2.3 of this
Agreement with respect to the portion of the Trust Fund committed to its investment discretion and
control. The Trustee shall be responsible for the safekeeping of any assets which remain in their
custody, but in no event shall the Trustee be under any duty to question or make any inquiry or
suggestion regarding the action or inaction of a Manager or an insurer or the advisability of
acquiring, retaining, or disposing of any asset of a segregated account. The Employer shall
indemnify and hold the Trustee harmless from any and all costs, damages, expenses, and liabilities
which the Trustee may incur by reason of any action taken or omitted to be taken by the Trustee
upon directions from the Committee, a Manager, or an insurer pursuant to this Section 2.2.

     2.3 Trustee Powers. In addition to and not by way of limitation upon the fiduciary
powers granted to it by law, the Trustee shall have the following specific powers, subject to the
limitations set forth in Section 2.1 of this Agreement:

     2.3-1 to receive, hold, manage, invest and reinvest the money or other property which
constitutes the Trust Fund, without distinction between principal and income;

     2.3-2 to hold funds uninvested temporarily, provided it is a period of time that is not
unreasonable, without liability for interest thereon, and to deposit funds in one or more savings
or similar accounts with any banks and savings and loan associations which are insured by an
instrumentality of the federal government, including the Trustee if it is such an institution;

     2.3-3 at the direction of the Committee, to invest or reinvest the whole or any portion of
the money or other property which constitutes the Trust Fund in such common or preferred stocks,
investment trust shares, mutual funds, commingled trust funds, partnership interests, bonds, notes,
or other evidences of indebtedness, and real and personal property as the Trustee in their absolute
judgment and discretion may deem to be for the best interests of the Trust Fund, regardless of
nondiversification to the extent that such nondiversification is clearly prudent, and regardless of
whether any such investment or property is authorized by law regarding the investment of trust
funds, of a wasting asset nature, temporarily non-income producing, or within or without the United
States;

3

 

     2.3-4 to invest in common and preferred stocks, bonds, notes, or other obligations of any
corporation or business enterprise in which an Employer or its owners may own an interest;

     2.3-5 at the direction of the Committee, to exchange any investment or property, real or
personal, for other investments or properties at such time and upon such terms as the Trustee shall
deem proper;

     2.3-6 at the direction of the Committee, to sell, transfer, convey or otherwise dispose of
any investment or property, real or personal, for cash or on credit, in such manner and upon such
terms and conditions as the Trustee shall deem advisable, and no person dealing with the Trustee
shall be under any duty to inquire as to the validity, expediency, or propriety of any such sale or
as to the application of the purchase money paid to the Trustee;

     2.3-7 to hold any investment or property in the name of the Trustee, with or without the
designation of any fiduciary capacity, or in the name of a nominee, or unregistered, or in such
other form that title may pass by delivery; provided, however, that the Trustee’s records always
show that such investment or property belongs to the Trust Fund and the Trustee shall not be
relieved hereby of its responsibility to maintain safe custody of such investment or property;

     2.3-8 to organize one or more corporations to hold, manage, or liquidate any property,
including real estate, owned or acquired by the Trust Fund if in the sole discretion of the Trustee
the organization of such corporation or corporations is for the best interests of the Trust and the
Plan Participants and Beneficiaries;

     2.3-9 to extend the time for payment of, to modify, to renew, or to release security from any
mortgage, note or other evidence of indebtedness, or to take advantage of or waive any default; to
foreclose mortgages and bid on property under foreclosure or to take title to property by
conveyance in lieu of foreclosure, either with or without the payment of additional consideration;

     2.3-10 to vote in person or by proxy all stocks and other securities having voting
privileges; to exercise or refrain from exercising any option or privilege with respect to stocks
and other securities, including any right or privilege to subscribe for or otherwise to acquire
stocks and other securities; or to sell any such right or privilege; to assent to and join in any
plan of refinance, merger, consolidation, reorganization or liquidation of any corporation or other
enterprise in which this Trust may have an interest, to deposit stocks and other securities with
any committee formed to effectuate the same, to pay any expense incidental thereto, to exchange
stocks and other securities for those which may be issued pursuant to any such plan, and to retain
as an investment the stocks and other securities received by the Trustee; and to deposit any
investment in a voting trust; notwithstanding the preceding, Participants and Beneficiaries shall
be entitled to direct the manner in which stock allocated to their respective accounts are to be
voted on all matters. All stock which has been allocated to Participants’ Accounts for which the
Trustee has received no written direction and all unallocated Employer securities will be voted by
the Trustee in direct proportion to any Participant’s directions received and solely in the
interest of the Participants and Beneficiaries. Whenever such voting rights are to be exercised,
the Employer, the Committee and the Trustee shall see that all Participants and Beneficiaries are

4

 

provided with adequate opportunity to deliver their instructions to the Trustee regarding voting of
stock allocated to their accounts. The instructions of the Participants with respect to the voting
of allocated shares hereunder shall be confidential;

     2.3-11 to abandon any property, real or personal, which the Trustee shall consider to be
worthless or not of sufficient value to warrant its keeping or protecting; to abstain from the
payment of taxes, water rents, assessments, repairs, maintenance, and upkeep of any such property;
to permit any such property to be lost by tax sale or other proceedings, and to convey any such
property for a nominal consideration or without consideration;

     2.3-12 to borrow money from the Employer or from others (including the Trustee), and to enter
into installment contracts, for the purchase of Stock upon such terms and conditions and at such
reasonable rates of interest as the Committee may deem to be advisable, to issue its promissory
notes as Trustee to evidence such debt, to secure the payment of such notes by pledging any
property of the Trust Fund, and to authorize the holders of any such notes to pledge them to secure
obligations of the holders and in connection therewith to repledge any assets of the Trust as
security therefor; provided that, with respect to any extension of credit to the Trust involving,
as a lender or guarantor, the Employer or other “disqualified person” within the meaning of Section
4975(e)(2) of the Code —

	 	(a)	 	each loan or installment contract is primarily for the benefit of Participants
and Beneficiaries of the Plan;
	 
	 	(b)	 	any interest on a loan or installment contract does not exceed a reasonable
rate;
	 
	 	(c)	 	the proceeds of any loan shall be used only to acquire Stock, to repay the
loan, or to repay a previous loan meeting these conditions, and the subject of any
installment contract shall be only the Trust’s purchase of Stock;
	 
	 	(d)	 	any collateral pledged to a creditor by the Trustee shall consist only of
qualifying employer securities as that term is defined under Section 4975(e)(8) of the
Code and the creditor shall have no recourse against the Trust Fund except with respect
to the collateral (although the creditor may have recourse against an Employer as
guarantor);
	 
	 	(e)	 	payments with respect to a loan or installment contract shall be made only from
those amounts contributed by the Employer to the Trust Fund, from amounts earned on
such contributions, and from cash dividends received on unallocated Stock held by the
Trust as collateral for such an obligation; and
	 
	 	(f)	 	upon the payment of any portion of balance due on a loan or upon any
installment payment, a proportionate part of any qualified employer securities
originally pledged as collateral for such indebtedness shall be released from
encumbrance in accordance with Section 4.2 of the Plan and the Committee shall at least
annually advise the Trustee of the number of shares of Stock so released and the proper
allocation of such shares under the terms of the Plan;

     2.3-13 to manage and operate any real property which shall at any time constitute an asset of
the Trust Fund; to make repairs, alterations, and improvements thereto; to insure such property
against loss by fire or other casualty; to lease or grant options for the sale of such property,
which lease or option may be for a period of time which may extend beyond the life of

5

 

this Trust; and to take any other action or enter into any other contract respecting such property
which is consistent with the best interests of the Trust;

     2.3-14 to pay any and all reasonable and normal expenses incurred in connection with the
exercise of any power, right, authority or discretion granted herein, and, upon prior notice to the
Bank, to employ and compensate agents, investment counsel, custodians, actuaries, attorneys, and
accountants in such connection;

     2.3-15 to employ and consult with any legal counsel, who also may be counsel to an Employer
or the Administrator, with respect to the meaning or construction of this Trust Agreement, the
extent of the Trustee’s obligations and duties hereunder, and whether the Trustee should take or
decline to take a particular action hereunder, and the Trustee shall be fully protected with
respect to any action taken or omitted by such Trustee in good faith pursuant to such advice;

     2.3-16 to defend any action or proceeding instituted against the Trust Fund, to institute any
action on behalf of the Trust Fund, and to compromise or submit to arbitration any dispute
concerning the Trust Fund;

     2.3-17 to make, execute, acknowledge and deliver any and all documents of transfer and
conveyance and any and all other instruments that may be necessary or appropriate to carry out the
powers herein granted;

     2.3-18 to commingle the Trust Fund created pursuant hereto, in whole or in part, in a single
trust with all or any portion of any other trust fund, assigning an undivided interest to each such
commingled trust fund, provided that such commingled trust is itself exempt from taxation pursuant
to Section 501(a) of the Code, or its successor Section; and provided further that the trust
agreement governing such commingled trust shall be deemed incorporated by reference in the Plan;

     2.3-19 where two or more trusts governed by this Trust Agreement have an undivided interest
in any property, to credit the income from such property to such trusts in proportion to their
undivided interests, and when non pro rata distributions of property or money are made from such
trusts, to make appropriate adjustments to the undivided fractional interests of such trusts;

     2.3-20 to invest all or any portion of the Trust Fund in one or more group annuity contracts,
deposit administration contracts, and other such contracts with insurance companies, including any
commingled separate accounts established under such contracts;

     2.3-21 generally, with respect to all cash, stocks and other securities, and property, both
real and personal, received or held in the Trust Fund by the Trustee, to exercise all the same
rights and powers as are or may be lawfully exercised by persons owning cash, or stocks and other
securities, or such property in their own right; and to do all other acts, whether or not expressly
authorized, which it may deem necessary or proper for the protection of the Trust Fund; and

6

 

     2.3-22 whenever more than two persons shall qualify to act as co-Trustee, to exercise and
perform every power (including discretionary powers), authority or duty by the concurrence of a
majority of them the same effect as if all had joined therein, except that the unanimous vote of
such persons shall be necessary to determine the number (one or more) and identity of persons who
may sign checks, make withdrawals from financial institutions, have access to safe deposit boxes,
or direct the sale of trust assets and the disposition of the proceeds.

     2.4 Brokerage. If permitted in writing by the Committee the Trustee shall have the
power and authority, to be exercised in their sole discretion at any time and from time to time, to
issue and place orders for the purchase or sale of securities with qualified brokers and dealers.
Such orders may be placed with such qualified brokers and/or dealers who also provide investment
information or other research or statistical services to the Trustee in its capacity as a fiduciary
or investment manager for other clients.

     Section 3. Compensation and Indemnification of Trustee and Payment of Expenses and
Taxes.

     3.1 Fees and Expenses from Fund. In consideration for rendering services pursuant to
this Trust Agreement, the Trustee shall be paid fees in accordance with the Trustee’s fee schedule
as in effect from time to time. Fee changes resulting in fee increases shall be effective upon not
less than 30 days’ notice to the Bank. In addition, the Trustee shall be reimbursed for any
reasonable expenses, including reasonable attorneys’ fees, incurred in the administration of the
Trust created hereby. Fees and expenses shall be allocated to Participants’ Accounts, if any,
unless paid directly by the Employer. All compensation and expenses of the Trustee shall be paid
out of the Trust Fund or by the Employer as specified in the Plan. If and to the extent the Trust
Fund shall not be sufficient, such compensation and expenses shall be paid by the Employer upon
demand. If payment is due but not paid by the Employer, such amount shall be paid from the assets
of the Trust Fund. The Trustee is hereby empowered to withdraw all such compensation and expenses
which are 60 days past due from the Trust Fund, and, in furtherance thereof, liquidate any assets
of the Trust Fund, without further authorization or direction from or by any person.
Notwithstanding the foregoing, in the event any officer or director of Madison Square Federal
Savings Bank serves as trustee of the Plan, no compensation shall be paid to the officer or
director in exchange for his or her services as trustee.

     3.2 Indemnification. Notwithstanding any other provision of this Trust Agreement, any
individual designated as a trustee hereunder shall be indemnified and held harmless by the Employer
to the fullest extent permitted by law against any and all costs, damages, expenses and liabilities
including, but not limited to attorneys’ fees and disbursements reasonably incurred by or imposed
upon such individual in connection with any claim made against him or in which he may be involved
by reason of his being, or having been, a trustee hereunder, to the extent such amounts are not
satisfied by insurance maintained by the Employer, except liability which is adjudicated to have
resulted from the gross negligence or willful misconduct of the Trustee by reason of any action so
taken. Further, any corporate trustee and its officers, directors and agents may be indemnified
and held harmless by the Employer to the fullest extent permitted by law against any and all costs,
damages, expenses and liabilities including, but not limited to,

7

 

attorneys’ fees and disbursements reasonably incurred by or imposed upon such persons and/or
corporation in connection with any claim made against it or them or in which such persons and/or
corporation may be involved by reason of its being, or having been, a trustee hereunder as may be
agreed between the Employer and such trustee, except liability which is adjudicated to have
resulted from the gross negligence or willful misconduct of the Trustee by reason of any action so
taken.

     3.3 Expenses. All expenses of administering the Trust and the Plan, whether incurred
by the Trustee or the Committee, shall be paid by the Trustee from the Trust Fund to the extent
such expenses shall not have been assumed by the Employer.

     3.4 Taxes. All taxes that may be levied or assessed upon or in respect of the Trust
Fund shall be paid from the Trust Fund. The Trustee shall notify the Committee of any proposed or
final assessments of taxes and may assume that any such taxes are lawfully levied or assessed
unless the Committee advises it in writing to the contrary within fifteen days after receiving the
above notice from the Trustee. In such case, the Trustee, if requested by the Committee in
writing, shall contest the validity of such taxes in any manner deemed appropriate by the
Committee; the Employer may itself contest the validity of any such taxes, in which case the
Committee shall so notify the Trustee and the Trustee shall have no responsibility or liability
respecting such contest. If either party to this Agreement contests any such proposed levy or
assessments, the other party shall provide such information and cooperation as the party conducting
the contest shall reasonably request.

     Section 4. Records and Valuation.

     4.1 Records. The Trustee, and any investment manager appointed pursuant to Section
2.2 of this Agreement, shall maintain accurate and detailed records and accounts of all
investments, receipts, disbursements and other transactions made by it with respect to the Trust
Fund, and all accounts, books and records relating thereto shall be open at all reasonable time to
inspection and audit by the Committee and the Employer.

     4.2 Valuation. From time to time upon the request of the Committee, but at least
annually as of the last day of each Plan Year, the Trustee shall prepare a balance sheet of the
Investment Fund in accordance with the Plan and shall deliver copies of the balance sheet to the
Committee and the Employer.

     4.3 Discharge of Trustee. Ninety (90) days after the filing of any balance sheet
under Section 4.2 of this Agreement or any accounting under Section 6 of this Agreement, the
Trustee shall be forever released and discharged from any liability or accountability other than
for gross negligence or wilful misconduct on the part of the Trustee to anyone with respect to the
transactions shown or reflected in such balance sheet or accounting, except with respect to any
acts or transactions as to which the Committee, within such 90-day period, files written objections
with the Trustee. The written approval of the Committee of any balance sheet or accounting so
filed by the Trustee, or the Committee’s failure to file written objections within 90 days, shall
be a settlement of such balance sheet or accounting as against all persons, and shall forever
release and discharge the Trustee from any liability of accountability to anyone with

8

 

respect to the transactions shown or reflected in such balance sheet or accounting other than
liability arising out of the Trustee’s gross negligence or wilful misconduct. If a statement of
objections is filed by the Committee and the Committee is satisfied that its objections should be
withdrawn or if the balance sheet or accounting is adjusted to its satisfaction, the Committee
shall indicate its approval of the balance sheet or accounting in a written statement filed with
the Trustee and the Trustee shall be forever released and discharged from any liability of
accountability to anyone in accordance with the immediately preceding sentence. If an objection is
not settled by the Committee and the Trustee, the Trustee may start a proceeding for a judicial
settlement of the balance sheet or accounting in any court of competent jurisdictions; the only
parties that need be joined in such a proceeding are the Trustee, the Committee, the Employer and
any other parties whose participation is required by law.

     4.4 Right to Judicial Settlement. Nothing in this Agreement shall prevent the Trustee
from having its account settled by a court of competent jurisdiction at any time. The only parties
that need be joined in any such proceeding are the Employer, the Committee, the Trustee and any
other parties whose participation is required by law.

     Section 5. Instructions from Committee.

     5.1 Certification of Members of the Committee. From time to time the Bank shall
certify to the Trustee in writing the names of the individuals comprising the Committee and shall
furnish to the Trustee specimens of their signatures and the signatures of their agents, if any.
The Trustee shall be entitled to presume that the identities of such individuals and their agents
are unchanged until it receives a certification from the Bank notifying it of any changes.

     5.2 Instructions to Trustee.

     (a) The Trustee shall pay benefits and administrative expenses under the Plan only when it
receives (and in accordance with) written instructions of the Committee indicating the amount of
the payment and the name and address of the recipient in accordance with the terms of the Plan.
The Trustee need not inquire into whether any payment the Committee instructs the Trustee to make
is consistent with the terms of the Plan or applicable law or otherwise proper. Any payment made
by the Trustee in accordance with such instructions shall be a complete discharge and acquaintance
to the Trustee. If the Committee advises the Trustee that benefits have become payable with
respect to a Participant’s interest in the Trust Fund but does not instruct the Trustee as to the
manner of payment, the Trustee shall hold the Participant’s interest in the Trust until the Trustee
receives written instructions from the Committee as to the manner of payment. The Trustee shall
not pay benefits from the Trust Fund without such instructions, even though it may be informed from
other sources, including, without limitation, a Participant or Beneficiary, that benefits are
payable under the Plan. The Trustee shall have no responsibility to determine when, to whom or in
what amount benefits and expenses are payable under the Plan. Further, the Trustee shall have no
power, authority or duty to interpret the Plan or inquire into the decisions or determinations of
the Committee, or to question the instructions given to it by the Committee. If the Committee so
directs, the Trustee shall segregate amounts payable with respect to the interest in the Plan of
any Participant and administer them separately from the rest of the Trust Fund in accordance with
the Committee’s instructions.

9

 

     (b) The Trustee may require the Committee to certify in writing that any payment of benefits
or expenses it instructs the Trustee to make pursuant to Section 5.2(a) above is: (i) in
accordance with the terms of the Plan and/or (ii) one which the Committee is authorized by the Plan
and any other applicable instruments to direct and/or (iii) made for the exclusive purpose of
providing benefits to Participants and Beneficiaries, or defraying reasonable expenses of Plan
administration and/or (iv) not made to a party in interest (within the meaning of ERISA Section
3(14)), and/or (v) not a prohibited transaction (within the meaning of Code Section 4975 and ERISA
Section 406). If the Trustee requests, instructions to pay benefits shall be made by the Committee
on forms prepared by the Trustee to include any or all of the above representations. The Trustee
shall be fully protected in relying on the truth of any such representation by the Committee and
shall have no duty to investigate whether such representations are correct or to see to the
application of any amounts paid to and received by the recipient.

     5.3 Plan Change. In the event of an amendment, merger, division, or termination of
the Plan, the Trustee shall continue to disburse funds and to take other proper actions in
accordance with the instructions of the Committee.

     Section 6. Change of Trustee.

     The Bank may at any time remove any person or entity serving as a Trustee hereunder by giving
to such person or entity written notice of removal and, if applicable, the name and address of the
successor trustee. Any person or entity serving as a Trustee hereunder may resign at any time by
giving written notice to the Bank. Any such removal or resignation shall take effect within 30
days after notice has been given by the Trustee or by the Bank, as the case may be. Within those
30 days, the removed or resigned Trustee shall transfer, pay over and deliver any portion of the
Trust Fund in its possession or control (less an appropriate reserve for any unpaid fees, expenses,
and liabilities) and all pertinent records to the successor or remaining trustee; provided,
however, that any assets which are invested in a collective fund or in some other manner which
prevents their immediate transfer shall be transferred and delivered to the successor trustee as
soon as may be practicable. Thereafter, the removed or resigned Trustee shall have no liability
for the Trust Fund or for its administration by the successor or remaining trustee, but shall
render an accounting to the Committee of its administration of the Trust Fund through the date on
which its Trusteeship shall have been terminated. The Bank may also, upon 30 days’ notice to each
person currently serving as a trustee, appoint one or more persons to serve as co-Trustee
hereunder.

     Section 7. Miscellaneous.

     7.1 Right to Amend. This Trust Agreement may be amended from time to time by an
instrument executed by the Bank; provided, however, that any amendment affecting the powers, duties
or liabilities of the Trustee must be approved by the Trustee, and provided, further, that no
amendment may divert any portion of the Trust Fund to purposes other than the exclusive benefit of
the Participants and their Beneficiaries prior to the satisfaction of all liabilities for benefits.
Any amendment shall apply to the Trust Fund as constituted at the time of the amendment as well as
to that portion of the Trust Fund which is subsequently acquired.

10

 

     7.2 Compliance with ERISA. In the exercise of its powers and the performance of its
duties, the Trustee shall act in good faith and in accordance with the applicable requirements
under ERISA. Except as may be otherwise required by ERISA, the Trustee shall not be required to
furnish any bond in any jurisdiction for the performance of their duties and, if a bond is required
despite this provision, no surety shall be required on it.

     7.3 Nonresponsibility for Funding. The Trustee shall be under no duty to enforce the
payment of any contributions and shall not be responsible for the adequacy of the Trust Fund to
satisfy any obligations for benefits, expenses, and liabilities under the Plan.

     7.4 Reports. The Trustees shall file any report which they are required by law to
file with any governmental authority with respect to this Trust, and the Committee shall furnish to
the Trustee whatever information is necessary to prepare the report.

     7.5 Dealings with the Trustee. Persons dealing with the Trustee, including, but not
limited to, banks, brokers, dealers, and insurers, shall be under no obligation to inquire
concerning the validity of anything which the Trustee purports to do, nor need any person see to
the proper application of any money paid or any property transferred upon the order of the Trustee
or to inquire into the Trustee’s authority as to any transaction.

     7.6 Limitation Upon Responsibilities. The Trustee shall have no responsibilities with
respect to the Plan or Trust other than those specifically enumerated or explicitly allocated to it
under this Trust Agreement or the provisions of ERISA. All other responsibilities are retained and
shall be performed by one or more of the Employer, the Committee, and such advisors or agents as
they choose to engage.

     The Trustee may execute any of the trusts or powers hereof and perform any of its duties by or
through attorneys, agents, receivers or employees and shall not be answerable for the conduct of
the same if chosen with reasonable care and shall be entitled to advice of counsel concerning all
matters of trust hereof and the duties hereunder, and may in all cases pay such reasonable
compensation to all such attorneys, agents, receivers and employees as may reasonably be employed
in connection with the trusts hereof. The Trustee may act upon the opinion or advice of any
attorney (who may be the attorney for the Trustee or attorney for the Committee), approved by the
Trustee in the exercise of reasonable care. The Trustee shall not be responsible for any loss or
damage resulting from any action or non-action in good faith in reliance upon such opinion or
advice.

     The Trustee shall be protected in acting upon any notice, request, consent, certificate,
order, affidavit, letter, telegram or other paper or document believed to be genuine and correct
and to have been signed or sent by the proper person or persons, and the Trustee shall be under no
duty to make any investigation or inquiry as to any statement contained in any such writing but may
accept the same as conclusive evidence of the truth and accuracy of the statements therein
contained.

11

 

     The Trustee shall not be liable for other than their gross negligence or willful misconduct.
Except in the case of gross negligence or wilful misconduct on the part of the Trustee, the Trustee
in its corporate capacity shall not be liable for claims of any persons in any manner regarding the
Plan; such claims shall be limited to the Trust Fund. Unless the Trustee participates knowingly
in, or knowingly undertakes to conceal, an act or omission of the Committee or any other fiduciary,
knowing such act or omission to be a breach of fiduciary responsibility, the Trustee shall be under
no liability for any loss of any kind which may result by reason of such act or omission.

     Before taking any action hereunder at the request or direction of the Committee, the Trustee
may require that indemnity in form and amount satisfactory to the Trustee be furnished for the
reimbursement of any and all costs and expenses to which they may be put including, without
limitation, reasonable attorneys’ fees and to protect them against all liability, except liability
which is adjudicated to have resulted from the gross negligence or willful misconduct of the
Trustee by reason of any action so taken.

     No provision of this Trust Agreement shall require the Trustee to expend or risk their own
funds or otherwise incur any financial liability in the performance of any of their duties
hereunder, or in the exercise of any of their rights or powers, if they shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity against such risk or
liability is not reasonably assured to them.

     7.7 Qualification of the Plan and Trust. The Trustee shall be fully protected in
assuming that the Plan and Trust meet the requirements of Code Sections 401 and 501, respectively,
and all the applicable provisions of ERISA, unless they are advised to the contrary in writing by
the Committee or a governmental agency.

     7.8 Party in Interest Information. The Employer shall provide the Trustee with such
information concerning the relationship between any person or organization and the Plan as the
Trustee reasonably requests in order to determine whether such person or organization is a party in
interest with respect to the Plan within the meaning of ERISA Section 3(14).

     7.9 Disputes. If a dispute arises as to the payment of any funds or delivery of any
assets by the Trustee, the Trustee may withhold such payment or delivery until the dispute is
determined by a court of competent jurisdiction or finally settled in writing by the parties
concerned.

     7.10 Successor Trustee. This Trust Agreement shall apply to any person who shall be
appointed to succeed the person currently appointed as the Trustee; and any reference herein to the
Trustee shall be deemed to include any one or more individuals or corporations or any combination
thereof who or which have at any time acted as a co-trustee or as the sole trustee.

     7.11 Governing State Law. This Trust Agreement shall be interpreted in accordance
with the laws of the State of Maryland to the extent those laws may be applicable under the
provisions of ERISA.

12

 

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

	 	 	 	 	 	 	 

	ATTEST: 

BANK	 	MADISON SQUARE FEDERAL SAVINGS	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	For the Entire Board of Directors	 	 
	 
	 	 	 	 	 	 
	ATTEST:	 	[TRUSTEE]

as TRUSTEE	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 

13

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