Document:

exhibit10-7.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    AMENDED
AND RESTATED

    

    

    EMPLOYEE
RETENTION AGREEMENT

    

    

    

    

    by
and among

    

    

    

    

    THE
DIME SAVINGS BANK OF WILLIAMSBURGH,

    

    

    

    

    DIME
COMMUNITY BANCSHARES, INC.

    

    

    

    

    and

    

    

    

    TIMOTHY
B. KING / MICHAEL PUCELLA

    

    

    

    made and
entered into as of

    _________________,
2008

    
      
        
          

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    AMENDED
AND RESTATED

    EMPLOYEE
RETENTION AGREEMENT

     

    This
AMENDED AND RESTATED
EMPLOYEE RETENTION
AGREEMENT (“Agreement”)
is made and entered into as of ________, 2008 by and among THE DIME SAVINGS BANK of
WILLIAMSBURGH, a savings bank organized and operating under the federal
laws of the United States and having its executive offices at 209 Havemeyer
Street, Brooklyn, New York 11211 (“Bank”); DIME COMMUNITY BANCSHARES,
INC., a business corporation organized and existing under the laws of the
State of Delaware and having its executive offices at 209 Havemeyer Street,
Brooklyn, New York 11211 (“Holding Company”); and Timothy B. King, an individual
residing at __________________ (“Officer”)

     

    W I T N E S S E T H:

     

    WHEREAS, the Officer and the
Bank are parties to an Employee Retention Agreement (“Prior Agreement”) made and
entered into as of June 26, 1999 (“Initial Effective Date”), pursuant to which
the Bank has agreed to provide certain payments to the Officer in the event that
his employment is terminated under certain circumstances as a result of a Change
of Control; and

     

    WHEREAS, the parties desire to
amend and restate the Prior Agreement for the purpose, among others, of
compliance with the applicable requirements of section 409A of the Internal
Revenue Code of 1986 (“the Code”); and

     

    WHEREAS, the Bank desires to
assure for itself the continued availability of the Officer’s services and the
ability of the Officer to perform such services with a minimum of personal
distraction in the event of a pending or threatened Change of Control,
and

     

    WHEREAS, the Officer is
willing to continue to serve 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, the Holding Company and the Officer hereby
agree as follows:

     

    
      	
               
      

            	
              Section
      1.

            	
              Effective
      Date

            

    

     

    (a)           This
Agreement shall be effective as of the Initial Effective Date and shall remain
in effect during the term of this Agreement which shall be for a period of three
(3) years commencing on the Initial Effective Date, plus such extensions as are
provided pursuant to section 1(b); provided, however, that if
the term of this Agreement has not otherwise terminated, the term of this
Agreement will terminate on the date of the Officer’s termination of employment
with the Bank; and provided,
further, that the obligations under section 8 of this Agreement shall
survive the term of this Agreement if payments become due
hereunder.

     

    (b)           Prior
to each anniversary date of this Agreement, the Board shall consider the
advisability of an extension of the term in light of the circumstances then
prevailing and may, in its discretion, approve an extension to take effect as of
the upcoming anniversary date. If an extension is approved, the term of this
Agreement shall be extended so that it will expire three (3) years after such
anniversary date.

     

    (c)           Notwithstanding
anything herein contained to the contrary: (i) the Officer’s employment with the
Bank may be terminated at any time, subject to the terms and conditions of this
Agreement; and (ii) nothing in this Agreement shall mandate or prohibit a
continuation of the Officer’s employment following the expiration of the
Assurance Period upon such terms and conditions as the Bank and the Officer may
mutually agree upon.

     

    
      	
               
      

            	
              Section
      2.

            	
              Assurance
      Period.

            

    

     

    (a)           The
assurance period (“Assurance Period”) shall be for a period commencing on the
date of a Change of Control, as defined in section 10 of this Agreement, and
ending on the third anniversary of the date on which the Assurance Period
commences, plus such extensions as are provided pursuant to the following
sentence. The Assurance Period shall be automatically extended for one (1)
additional day each day, unless either the Bank or the Officer elects not to
extend the Assurance Period further by giving written notice to the other party,
in which case the Assurance Period shall become fixed and shall end on the third
anniversary of the date on which such written notice is given; provided, however, that if
following a Change of Control, the Office of Thrift Supervision (or its
successor) is the Bank’s primary federal regulator, the Agreement shall be
subject to extension not more frequently than annually and only upon review and
approval of the Board.

     

    (b)           Upon
termination of the Officer’s employment with the Bank, any daily extensions
provided pursuant to the preceding sentence, if not theretofore discontinued,
shall cease and the remaining unexpired Assurance Period under this Agreement
shall be a fixed period ending on the later of the third anniversary of the date
of the Change of Control, as defined in section 10 of this Agreement, or the
third anniversary of the date on which the daily extensions were
discontinued.

     

    
      	
               
      

            	
              Section
      3.

            	
              Duties.

            

    

     

    During
the period of the Officer’s employment that falls within the Assurance Period,
the Officer shall: (a) except to the extent allowed under section 6 of this
Agreement, devote his full business time and attention (other than during
weekends, holidays, vacation per­iods, and periods of illness, disability or
approved leave of absence) to the business and affairs of the Bank and use his
best efforts to advance the Bank’s interests; (b) serve in the position to which
the Officer is appointed by the Bank, which, during the Assurance Period, shall
be the position that the Officer held on the day before the Assurance Period
commenced or any higher office at the Bank to which he may subsequently be
appointed; and (c) subject to the direction of the Board and the By-laws of the
Bank, have such functions, duties, responsibilities and authority commonly
associated with such position.

     

    
      	
               
      

            	
              Section
      4.

            	
              Compensation.

            

    

     

    In
consideration for the services rendered by the Officer during the Assurance
Period, the Bank shall pay to the Officer during the Assurance Period a salary
at an annual rate equal to the greater of:

     

    (a)           the
annual rate of salary in effect for the Officer on the day before the Assurance
Period commenced; or

     

    (b)           such
higher annual rate as may be prescribed by or under the authority of the
Board;

     

    provided, however, that in no
event shall the Officer’s annual rate of salary under this Agreement in effect
at a particular time during the Assurance Period be reduced without the
Officer’s prior written consent. The annual salary payable under this section 4
shall be subject to review at least once annually and shall be paid in
approximately equal installments in accordance with the Bank’s customary payroll
practices. Nothing in this section 4 shall be deemed to prevent the Officer from
receiving additional compensation other than salary for his services to the
Bank, or additional compensation for his services to the Holding Company, upon
such terms and conditions as may be prescribed by or under the authority of the
Board or the Board of Directors of the Holding Company.

     

    
      	
               
      

            	
              Section
      5.

            	
              Employee Benefit Plans
      and Programs

            

    

     

    Except as
otherwise provided in this Agreement, the Officer shall, during the Assurance
Period, be treated as an employee of the Bank and be eligible to participate in
and receive benefits under any qualified or non-qualified defined benefit or
defined contribution retirement plan, group life, health (including
hospitalization, medical and major medical), dental, accident and long term
disability insurance plans, and such other employee benefit plans and programs,
including, but not limited to, any incentive compensation plans or programs
(whether or not employee benefit plans or programs), any stock option and
appreciation rights plan, em­ployee stock ownership plan and restricted
stock plan, as may from time to time be maintained by, or cover employees of,
the Bank, 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.

     

    
      	
               
      

            	
              Section
      6.

            	
              Board
      Memberships.

            

    

     

    The
Officer may serve as a member of the boards of directors of such business,
community and charitable organizations as he may disclose to and as may be
approved by the Board (which approval shall not be unreasonably withheld), and
he may engage in personal business and investment activities for his own
account; provided, however,
that such service and personal business and investment activities shall
not materially interfere with the performance of his duties under this
Agreement.

     

    
      	
               
      

            	
              Section
      7.

            	
              Working Facilities and
      Expenses.

            

    

     

    During
the Assurance Period, the Officer’s principal place of employment shall be at
the Bank’s executive offices at the address first above written, or at such
other location within the City of New York at which the Bank shall maintain its
principal executive offices, or at such other location as the Bank and the
Officer may mutually agree upon. The Bank shall provide the Officer, at his
principal place of employment, with a private office and support services and
facilities suitable to his position with the Bank and necessary or appropriate
in connection with the performance of his assigned duties under this Agreement.
The Bank shall reimburse the Officer for his ordinary and necessary business
expenses, including, without limi­tation, the Officer’s travel and
entertainment expenses, incurred in connection with the perfor­mance of the
Officer’s 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, each such reimbursement payment to be made promptly following receipt
of the itemized account and in any event not later than the last year in which
the expense was incurred.

     

    
      	
               
      

            	
              Section
      8.

            	
              Termination of
      Employment with Severance
Benefits.

            

    

     

    (a)           In
the event that the Officer’s employment with the Bank shall terminate during the
Assurance Period, or prior to the commencement of the Assurance Period but
within three (3) months of and in connection with a Change of Control as defined
in section 10 of this Agreement on account of:

     

    (i)           The
Officer’s voluntary resignation from employment with the Bank within ninety (90)
days following:

     

    (A)           the
failure of the Bank’s Board to appoint or re-appoint or elect or re-elect the
Officer to serve in the same position in which the Officer was serving, on the
day before the Assurance Period commenced or a more senior office;

     

    (B)           the
failure of the stockholders of the Holding Company to elect or re-elect the
Officer as a member of the Board, if he was a member of the Board on the day
before the Assurance Period commenced;

     

    (C)           the
expiration of a thirty (30) day period following the date on which the Officer
gives written notice to the Bank of its material failure, whether by amendment
of the Bank’s Organization Certificate or By-laws, action of the Board or the
Holding Company’s stockholders or otherwise, to vest in the Officer the
functions, duties, or responsibilities vested in the Officer on the day before
the Assurance Period commenced (or the functions, duties and responsibilities of
a more senior office to which the Officer may be appointed), unless during such
thirty (30) day period, the Bank fully cures such failure;

     

    (D)           the
failure of the Bank to cure a material breach of this Agreement by the Bank,
within thirty (30) days following written notice from the Officer of such
material breach;

     

    (E)           a
reduction in the compensation provided to the Officer, or a material reduction
in the benefits provided to the Officer under the Bank’s program of employee
benefits, compared with the compensation and benefits that were provided to the
Officer on the day before the Assurance Period commenced;

     

    (F)           a
change in the Officer’s principal place of employment that would result in a
one-way commuting time in excess of the greater of (I) 30 minutes or (II) the
Officer’s commuting time immediately prior to such change; or

     

    (ii)           the
discharge of the Officer by the Bank for any reason other than for “cause” as
provided in section 9(a);

     

    then,
subject to section 21, the Bank shall provide the benefits and pay to the
Officer the amounts provided for under section 8(b) of this Agreement; provided, however, that if
benefits or payments become due hereunder as a result of the Officer’s
termination of employment prior to the commencement of the Assurance Period, the
benefits and payments provided for under section 8(b) of this Agreement shall be
determined as though the Officer had remained in the service of the Bank (upon
the terms and conditions in effect at the time of his actual termination of
service) and had not terminated employment with the Bank until the date on which
the Officer’s Assurance Period would have commenced.

     

    (b)           Upon
the termination of the Officer’s employment with the Bank under circumstances
described in section 8(a) of this Agreement, the Bank shall pay and provide to
the Officer (or, in the event of the Officer’s death, to the Officer’s estate)
on his termination of employment, subject to section 24 :

     

    (i)           the
Officer’s earned but unpaid compensation (including, without limitation, all
items which constitute wages under section 190.1 of the New York Labor Law and
the payment of which is not otherwise provided for under this section 8(b)) as
of the date of the termination of the Officer’s employment with the Bank, such
payment to be made at the time and in the manner prescribed by law applicable to
the payment of wages but in no event later than thirty (30) days after
termination of employment;

     

    (ii)           the
benefits, if any, to which the Officer is entitled as a former employee under
the employee benefit plans and programs and compensation plans and programs
maintained for the benefit of the Bank’s officers and employees;

     

    (iii)           continued
group life, health (including hospitalization, medical and major medical),
accident and long term disability insurance benefits, in addition to that
provided pursuant to section 8(b)(ii) and after taking into account the coverage
provided by any subsequent employer, if and to the extent necessary to provide
for the Officer, for the remaining unexpired Assurance Period, coverage
equivalent to the coverage to which the Officer would have been entitled under
such plans (as in effect on the date of his termination of employment, or, if
his termination of employment occurs after a Change of Control, on the date of
such Change of Control, whichever benefits are greater) if the Officer had
continued working for the Bank during the remaining unexpired Assurance Period
at the highest annual rate of compensation achieved during the Officer’s period
of actual employment with the Bank;

     

    (iv)           
a lump sum payment, in an amount equal to the pre­sent value of the salary
that the Officer would have earned if the Officer had continued working for the
Bank during the remaining unexpired Assurance Period at the highest annual rate
of salary achieved during the Officer’s period of actual employment with the
Bank, where such present value is to be determined using a discount rate equal
to the applicable short-term federal rate prescribed under section 1274(d) of
the Internal Revenue Code of 1986 (“Code”) (“Applicable Short-Term Rate”),
compounded using the compounding periods corresponding to the Bank’s regular
payroll periods for its officers, such lump sum to be paid in lieu of all other
payments of salary provided for under this Agreement in respect of the period
following any such termination;

     

    (v)           
a lump sum payment in an amount equal to the excess, if any, of:

     

    (A)           the
present value of the aggregate benefits to which the Officer would be entitled
under any and all qualified and non-qualified defined benefit pension plans
maintained by, or covering employees of, the Bank if the Officer were 100%
vested thereunder and had continued working for the Bank during the remaining
unexpired Assurance Period, such benefits to be determined as of the date of
termination of employment by adding to the service actually recognized under
such plans an additional period equal to the remaining unexpired Assurance
Period and by adding to the compensation recognized under such plans for the
year in which termination of employment occurs all amounts payable under
sections 8(b)(I), (iv) and (vii);

     

    (B)           the
present value of the benefits to which the Officer is actually entitled under
such defined benefit pension plans as of the date of his
termination;

     

    where
such present values are to be determined using the mortality tables prescribed
under section 415(b)(2)(E)(v) of the Code and a discount rate, compounded
monthly, equal to the applicable long-term federal rate prescribed under section
1274(d) of the Code for the month in which his employment terminates; provided,
however, that if payments are made under this section 8(b)(v) as a result of
this section deeming otherwise unvested amounts under such defined benefit plans
to be vested, the payments, if any, attributable to such deemed vesting shall be
paid in the same form, and paid at the same time, and in the same manner, as
benefits under the corresponding non-qualified plan;

     

    (vi)           a
lump sum payment in an amount equal to the present value of the additional
employer contributions (or if greater in the case of a leveraged employee stock
ownership plan or similar arrangement, the additional assets allocable to him
through debt service, based on the fair market value of such assets at
termination of employment) to which he would have been entitled under any and
all qualified and non-qualified defined contribution plans maintained by, or
covering employees of, the Bank, if he were 100% vested thereunder and had
continued working for the Bank during the remaining unexpired Assurance Period
at the highest annual rate of compensation achieved during the Officer’s period
of actual employment with the Bank, and making the maximum amount of employee
contributions, if any, required under such plan or plans, such present value to
be determined on the basis of the discount rate, compounded using the
compounding period that corresponds to the frequency with which employer
contributions are made to the relevant plan, equal to the Applicable Short-Term
Rate; provided,
however, that if payments are made under this section 8(b)(vi) as a
result of this section deeming otherwise unvested amounts under such defined
contribution plans to be vested, the payments, if any, attributable to such
deemed vesting shall be paid in the same form, and paid at the same time, and in
the same manner, as benefits under the corresponding non-qualified
plan;

     

    (vii)           the
payments that would have been made to the Officer under any cash bonus or
long-term or short-term cash incentive compensation plan maintained by, or
covering employees of, the Bank, if he had continued working for the Bank
during  the remaining unexpired Assurance Period and had earned the
maximum bonus or incentive award in each calendar year that ends during the
remaining unexpired Assurance Period, such payments to be equal to the product
of:

     

    (A)           the
maximum percentage rate at which an award was ever available to the Officer
under such incentive compensation plan; multiplied by

     

    (B)           the
salary that would have been paid to the Officer during each such calendar year
at the highest annual rate of salary achieved during the remaining unexpired
Assurance Period, such payments to be made without discounting for early payment
..

     

    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 contemplated by this section 8(b) constitute a reasonable estimate
under the circumstances of all damages sustained as a consequence of any such
termination of employment, other than damages arising under or out of any stock
option, restricted stock or other non-qualified stock acquisition or investment
plan or program, it being understood and agreed that this Agreement shall not
determine the measurement of damages under any such plan or program in respect
of any termination of employment. Such damages shall be payable without any
requirement of proof of actual damage and without regard to the Officer’s
efforts, if any, to mitigate damages. The Bank and the Officer further agree
that the Bank may condition the payments and benefits (if any) due under
sections 8(b)(iii), (iv), (v), (vi) and (vii) on the receipt of the Officer’s
resignation from any and all positions which he holds as an officer, director or
committee member with respect to the Bank, the Company or any subsidiary or
affiliate of either of them.

     

    
      	
               
      

            	
              Section
      9.

            	
              Termination without
      Severance Benefits.

            

    

     

    In the
event that the Officer’s employment with the Bank shall terminate during the
Assurance Period on account of:

     

    (a)           the
discharge of the Officer for “cause,” which, for purposes of this Agreement
shall mean 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 any material
breach of this Agreement, in each case as measured against standards generally
prevailing at the relevant time in the savings and community banking industry;
provided, however, that
the Officer shall not be deemed to have been discharged for cause unless and
until he shall have received a written notice of termination from the Board,
accompanied by a resolution duly adopted by affirmative vote of a majority of
the entire Board at a meeting called and held for such purpose (after reasonable
notice to the Officer and a reasonable opportunity for the Officer to make oral
and written presentations to the members of the Board, on his own behalf, or
through a representative, who may be his legal counsel, to refute the grounds
for the proposed determination) finding that in the good faith opinion of the
Board grounds exist for discharging the Officer for cause; or

     

    (b)           the
Officer’s voluntary resignation from employment with the Bank for reasons other
than those specified in section 8(a)(I); or

     

    (c)           the
Officer’s death; or

     

    (d)           a
determination that the Officer is eligible for long-term disability benefits
under the Bank’s long-term disability insurance program or, if there is no such
program, under the federal Social Security Act; then the Bank shall have no
further obligations under this Agreement, other than the payment to the Officer
(or, in the event of his death, to his estate) of his earned but unpaid salary
as of the date of the termination of his employment, and the provision of such
other benefits, if any, to which the Officer is entitled as a former employee
under the employee benefit plans and pro­grams and compensation plans and
programs maintained by, or covering employees of, the Bank.

     

    
      	
              Section
      10.

            	
              Change of
      Control.

            

    

     

    (a)           A
Change of Control of the Bank (“Change of Control”) shall be deemed to have
occurred upon the happening of any of the following events:

     

    (i)           the
reorganization, merger or consolidation of the Bank, respectively, with one or
more other persons, other than a transaction following which:

     

    (A)           at
least 51% of the equity ownership interests of the entity resulting from such
transaction are beneficially owned (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) in substantially the same relative proportions by
persons who, immediately prior to such transaction, beneficially owned (within
the meaning of Rule 13d-3 promulgated under the Exchange Act) at least 51% of
the outstanding equity ownership interests in the Bank; and

     

    (B)           at
least 51% of the securities entitled to vote generally in the election of
directors of the entity resulting from such transaction are beneficially owned
(within the meaning of Rule 13d-3 promulgated under the Exchange Act) in
substantially the same relative proportions by persons who, immediately prior to
such transaction, beneficially owned (within the meaning of Rule 13d-3
promulgated under the Exchange Act) at least 51% of the securities entitled to
vote generally in the election of directors of the Bank;

     

    (ii)           the
acquisition of substantially all of the assets of the Bank or beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act)
of 20% or more of the outstanding securities of the Bank entitled to vote
generally in the election of directors by any person or by any persons acting in
concert;

     

    (iii)           a
complete liquidation or dissolution of the Bank, or approval by the stockholders
of the Bank of a plan for such liquidation or dissolution;

     

    (iv)           the
occurrence of any event if, immediately following such event, at least fifty
percent (50%) of the members of the Board do not belong to any of the following
groups:

     

    (A)           individuals
who were members of the Board on the date of this Agreement; or

     

    (B)           individuals
who first became members of the Board after the date of this Agreement
either:

     

    (1)           upon
election to serve as a member of the Board by affirmative vote of three-quarters
(3/4) of the members of such Board, or a nominating committee thereof, in office
at the time of such first election; or

     

    (2)           upon
election by the stockholders of the Board to serve as a member of the Board, but
only if nominated for election by affirmative vote of three quarters(3/4) of the
members of the Board, or of a nominating committee thereof, in office at the
time of such first nomination;

     

    provided, however, that such
individual’s election or nomination did not result from an actual or threatened
election contest (within the meaning of Rule 14a-11 of Regulation 14A
promulgated under the Exchange Act) or other actual or threatened solicitation
of proxies or consents (within the meaning of Rule 14a-11 of Regulation 14A
promulgated under the Exchange Act) other than by or on behalf of the Board of
the Bank; or

     

    (v)           any
event which would be described in section 10(a)(i), (ii), (iii) or (iv) if the
term “Holding Company” were substituted for the term “Bank”
therein.

     

    (b)           In
no event, however, shall a Change of Control be deemed to have occurred as a
result of any acquisition of securities or assets of the Holding Company, the
Bank or any subsidiary of either of them, by the Holding Company, the Bank or
any subsidiary of either of them, or by any employee benefit plan maintained by
any of them.

     

    
      	
              Section
      11.

            	
              Excise Tax
      Indemnification.

            

    

     

    (a)           This
section 11 shall apply if the Officer’s employment is terminated in
circumstances giving rise to liability for excise taxes under section 4999 of
the Code. If this Section 11 applies, then, if for any taxable year, the Officer
shall be liable for the payment of an excise tax under section 4999 of the Code
with respect to any payment in the nature of compensation made by the Company or
any direct or indirect subsidiary or affiliate of the Holding Company to (or for
the benefit of) the Officer, the Holding Company shall pay to the Officer an
amount equal to X deter­mined under the following formula:

     

    
      	
              X

            	
              =

            	
              E x
      P

            
	
              1 -
      [(FI x (1 - SLI)) + SLI + E + M]

            

    

    where

     

    
      	
               
      

            	
              E
      =

            	
              the
      rate at which the excise tax is assessed under section 4999 of the
      Code;

            

    

     

    
      	
               
      

            	
              P
      =

            	
              the
      amount with respect to which such excise tax is assessed, determined
      without regard to this section 11;

            

    

     

    
      	
               
      

            	
              FI
      =

            	
              the
      highest marginal rate of income tax applicable to the Officer under the
      Code for the taxable year in
question;

            

    

     

    
      	
               
      

            	
              SLI
      =

            	
              the
      sum of the highest marginal rates of income tax applicable to the Officer
      under all appli­cable state and local laws for the taxable year in
      ques­tion; and

            

    

     

    
      	
               
      

            	
              M
      =

            	
              the
      highest marginal rate of Medicare tax applicable to the Officer under the
      Code for the taxable year in
question.

            

    

     

    With
respect to any payment in the nature of compensation that is made to (or for the
benefit of) the Officer under the terms of this Agree­ment, or otherwise,
and on which an excise tax under sec­tion 4999 of the Code will be assessed,
the payment determined under this section 11(a) shall be made to the
Officer on the earlier of (i) the date the Holding Company or any direct or
indirect subsidiary or affiliate of the Holding Company is required to withhold
such tax, or (ii) the date the tax is required to be paid by the
Officer.

     

    (b)           Notwithstanding
anything in this section 11 to the contrary, in the event that the Officer’s
liability for the excise tax under section 4999 of the Code for a taxable year
is subse­quently determined to be different than the amount deter­mined
by the formula (X + P) x E, where X, P and E have the
meanings provided in section 11(a), the Officer or the Holding Company, as the
case may be, shall pay to the other party at the time that the amount of such
ex­cise tax is final­ly determined, an appropriate amount, plus
interest, such that the payment made under section 11(a), when increased by the
amount of the payment made to the Officer under this section 11(b) by the
Holding Company, or when reduced by the amount of the payment made to the
Company under this section 11(b) by the Officer, equals the amount that should
have properly been paid to the Officer under section 11(a). The interest paid
under this section 11(b) shall be determined at the rate provided under section
1274(b)(2)(B) of the Code. To confirm that the proper amount, if any, was paid
to the Officer under this section 11, the Officer shall furnish to the Holding
Company a copy of each tax return which reflects a liability for an excise tax
payment made by the Holding Company, at least 20 days before the date on which
such return is required to be filed with the Internal Revenue Service. Any
payment pursuant to this Section 11(b) shall in any case be made no later than
the last day of the calendar year following the calendar year in which any
additional taxes for which the payment is to be made are remitted to the
Internal Revenue Service.

     

    (c)           The
provisions of this section 11 are designed to reflect the provisions of
applicable federal, state and local tax laws in effect on the date of this
Agreement. If, after the date hereof, there shall be any change in any such
laws, this section 11 shall be modified in such manner as the Officer and the
Holding Company may mutually agree upon if and to the extent necessary to assure
that the Officer is fully indemnified against the economic effects of the tax
imposed under section 4999 of the Code or any similar federal, state or local
tax.

     

    
      	
              Section
      12.

            	
              No Effect on Employee
      Benefit Plans or Programs.

            

    

     

    The
termination of the Officer’s employment during the Assurance Period 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 qualified and
non-qualified defined benefit or defined contribution retirement plans, group
life, health (including hospitalization, medical and major medical), dental,
accident and long term disability insurance plans or such other employee benefit
plans or programs, or compensation plans or programs (whether or not employee
benefit plans or programs) and any defined contribution plan, employee stock
ownership plan, stock option and appreciation rights plan, and restricted stock
plan, as may be maintained by, or cover employees of, the Bank from time to
time; provided, however,
that nothing in this Agreement shall be deemed to duplicate any
compensation or benefits provided under any agreement, plan or program covering
the Officer to which the Bank or the Holding Company is a party and any
duplicative amount payable under any such agreement, plan or program shall be
applied as an offset to reduce the amounts otherwise payable
hereunder.

     

    
      	
              Section
      13.

            	
              Successors and
      Assigns.

            

    

     

    This
Agreement will inure to the benefit of and be binding upon the Officer, his
legal representatives and testate or intestate distributes, and the Bank and the
Holding Company, their respective 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 respective
assets and business of the Bank or the Holding Company may be sold or otherwise
transferred.

     

    
      	
              Section
      14.

            	
              Notices.

            

    

     

    Any
communication required or permitted to be given 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 (5) 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:

     

    If to the
Officer:

     

    Mr.
Timothy B. King

    ___________

    ______________

     

    If to the
Bank:

     

    The Dime
Savings Bank of Williamsburgh

    209
Havemeyer Street

    Brooklyn,
New York 11211

    Attention:  Corporate
Secretary

     

    If to the
Holding Company:

     

    Dime
Community Bancshares, Inc.

    209
Havemeyer Street

    Brooklyn,
New York 11211

    Attention:  Corporate
Secretary

     

    
      	
              Section
      15.

            	
              Indemnification and
      Attorneys’ Fees.

            

    

     

    The Bank
shall indemnify, hold harmless and defend the Officer against rea­sonable costs,
including legal fees, incurred by the Officer in connection with or arising out
of any action, suit or proceeding in which the Officer may be involved, as a
result of the Officer’s efforts, in good faith, to defend or enforce the terms
of this Agreement; provided, however, that the Officer shall have substantially
prevailed on the merits pursuant to a judgment, decree or order of a court of
competent jurisdiction or of an arbitrator in an arbitration proceeding, or in a
settlement; provided, further,
that this section 15 shall not obligate the Bank to pay costs and legal
fees on behalf of the Officer under this Agreement in excess of $20,000. For
purposes of this Agreement, any settlement agreement which provides for payment
of any amounts in settlement of the Bank’s obligations hereunder shall be
conclusive evidence of the Officer’s entitlement to indemnification hereunder,
and any such indemnification payments shall be in addition to amounts payable
pursuant to such settlement agreement, unless such settlement agreement
expressly provides otherwise. Any payment or reimbursement to effect such
indemnification shall be made no later than the last day of the calendar year
following the calendar year in which the Officer incurs the expense or, if
later, within sixty (60) days after the settlement or resolution that gives rise
to the Officer’s right to reimbursement; provided, however, that the Officer
shall have submitted to the Bank documentation supporting such expenses at such
time and in such manner as the Bank may reasonably require.

     

    
      	
              Section
      16.

            	
              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
      17.

            	
              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
      18.

            	
              Counterparts.

            

    

     

    This
Agreement may be executed in two (2) or more counterparts, each of which shall
be deemed an original, and all of which shall constitute one and the same
Agreement.

     

    
      	
              Section
      19.

            	
              Governing
      Law.

            

    

     

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

     

    
      	
              Section
      20.

            	
              Headings and
      Construction.

            

    

     

    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
      21.

            	
              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
including the Employee Retention Agreement made and entered into as of June 26,
1996. No modifications of this Agreement shall be valid unless made in writing
and signed by the parties hereto; provided, however, that this
Agreement shall be subject to amendment in the future in such manner as the Bank
and the Holding Company shall reasonably deem necessary or appropriate to effect
compliance with section 409A of the Code and the regulations thereunder, and to
avoid the imposition of penalties and additional taxes under section 409A of the
Code, it being the express intent of the parties that any such amendment shall
not diminish the economic benefit of the Agreement to the Officer on a present
value basis.

     

    
      	
              Section
      22.

            	
              Required Regulatory
      Provisions.

            

    

     

    The
following provisions are included for the purposes of complying with various
laws, rules and regulations applicable to the Bank:

     

    (a)           Notwithstanding
anything herein contained to the contrary, in no event shall the aggregate
amount of compensation payable to the Officer by the Bank under section 8(b)
hereof (exclusive of amounts described in section 8(b) (i)) exceed the three
times the Officer’s average annual total compensation for the last five
consecutive calendar years to end prior to his termination of employment with
the Bank (or for his entire period of employment with the Bank if less than five
calendar years). This section 22(a) shall not affect or limit payments made by
the Holding Company hereunder pursuant to sections 8(b), 11 or otherwise. The
Holding Company agrees that, if this section 22(a) would limit payments by the
Bank to the Officer pursuant to section 8(b) or otherwise, the Holding Company
shall make such payments to the Officer.

     

    (b)           Notwithstanding
anything herein contained to the contrary, any payments to the Officer by the
Bank, whether pursuant to this agreement or otherwise, are subject to and
conditioned upon their compliance with section 18(k) of the Federal Deposit
Insurance Act (“FDI Act”),
12 U.S.C. Sec. 1828(k), and any regulations promulgated thereunder.

     

    (c)           Notwithstanding
anything herein contained to the contrary, if the Officer is suspended from
office and/or temporarily prohibited from participating in the conduct of the
affairs of the Bank pursuant to a notice served under section 8(e)(3) or 8(g)(1)
of the FDI Act, 12 U.S.C. Sec. 1818(e)(3) or 1818(g)(1), the Bank’s obligations
under this Agreement shall be suspended as of the date of Service of such
notice, unless stayed by appropriate proceedings. If the charges in such notice
are dismissed, the Bank, in its discretion, may (i) pay to the Officer all or
part of the compensation withheld while the Bank’s obligations hereunder were
suspended and (ii) reinstate, in whole or in part, any of the obligations which
were suspended.

     

    (d)           Notwithstanding
anything herein contained to the contrary, if the Officer is removed and/or
permanently prohibited from participating in the conduct of the Bank’s affairs
by an order issued under section 8(e)(4) or 8(g)(1) of the FDI Act, 12 U.S.C.
sec. 1818(e)(4) or (g)(1), all prospective obligations of the order, but vested
rights and obligations of the Bank and the Officer shall not be
effected.

     

    (e)           Notwithstanding
anything herein contained to the contrary, if the Bank is in default (within the
meaning of section 3(x)(1) of the FDI Act, 12 U.S.C. Sec. 1813(x)(1), all
prospective obligations of the Bank under this Agreement shall terminate as of
the date of default, but vested rights and obligations of the Bank and the
Officer shall not be effected.

     

    (f)           Notwithstanding
anything herein contained to the contrary, all prospective obligations of the
Bank hereunder shall be terminated, except to the extent that a continuation of
this Agreement is necessary for the continued operation of the Bank: (i) by the
Director of the Office of Thrift Supervision (“OTS”) or his designee or the
Federal Deposit Insurance Corporation (“FDIC”), at the time the FDIC enters into
an agreement to provide assistance to or on behalf of the Bank under the
authority contained in section 13(c) of the FDI Act, 12 U.S.C. sec. 1823(c);
(ii) by the Director of the OTS or his designee at the time such Director or
designee approves a supervisory merger to resolve problems related to the
operation of the Bank or when the Bank is determined by such Director to be in
an unsafe or unsound condition. The vested rights and obligations of the parties
shall not be affected.

     

    If and to
the extent any of the foregoing provisions shall cease to be required by
applicable law, rule or regulation, the same shall become inoperative as though
eliminated by formal amendment of this Agreement.

     

    
      	
              Section
      23.

            	
              Guaranty.

            

    

     

    The
Holding Company hereby irrevocably and unconditionally guarantees to the Officer
the payment of all amounts, and the performance of all other obligations, due
from the Bank in accordance with the terms of this Agreement as and when due
without any requirement of presentment, demand of payment, protest or notice of
dishonor or nonpayment. For purposes of this section 23, the application of
sections 21(a), (c), (d), (e) or (f) to the Bank shall have no effect on the
Holding Company’s obligations hereunder.

     

    Section
24.Compliance with
Section 409A of the Code.

     

    The
Officer, the Bank and the Holding Company acknowledge that each of the payments
and benefits promised to the Officer under this Agreement must either comply
with the requirements of section 409A of the Code ("Section 409A") and the
regulations thereunder or qualify for an exception from compliance. To that end,
the Officer, the Bank and the Holding Company agree that:

     

    (a)           the
expense reimbursements described in section 7 and legal fee reimbursements
described in section 15 are intended to satisfy the requirements for a
"reimbursement plan" described in Treasury Regulation section
1.409A-3(i)(1)(iv)(A) and shall be administered to satisfy such
requirements;

     

    (b)           the
payment described in section 8(b)(i) is intended to be excepted from compliance
with Section 409A pursuant to Treasury Regulation section 1.409A-1(b)(3) as
payment made pursuant to the Bank’s customary payment timing
arrangement;

     

    (c)           the
benefits and payments described in section 8(b)(ii) are expected to comply with
or be excepted from compliance with Section 409A on their own
terms;

     

    (d)           the
welfare benefits provided in kind under section 8(b)(iii) are intended to be
excepted from compliance with Section 409A as welfare benefits pursuant to
Treasury Regulation section 1.409A-1(a)(5) and/or as benefits not includible in
gross income; and

     

    (e)           the
tax indemnity payment provided under section 11 is intended to satisfy the
requirements for a “tax gross-up payment” described in Treasury Regulation
section 1.409A-3(i)(1)(v).

     

    In the
case of a payment that is not excepted from compliance with Section 409A, and
that is not otherwise designated to be paid immediately upon a permissible
payment event within the meaning of Treasury Regulation section 1.409A-3(a), the
payment shall not be made prior to, and shall, if necessary, be deferred (with
interest at the annual rate of 6%, compounded monthly from the date of the
Officer’s termination of employment to the date of actual payment) to and paid
on the later of the date sixty (60) days after the Officer’s earliest separation
from service (within the meaning of Treasury Regulation section 1.409A-1(h))
and, if the Officer is a specified employee (within the meaning of Treasury
Regulation section 1.409A-1(i)) on the date of his separation from service, the
first day of the seventh month following the Officer’s separation from service.
Each amount payable under this plan that is required to be deferred beyond the
Officer’s separation from service, shall be deposited on the date on which, but
for such deferral, the Holding Company would have paid such amount to the
Officer, in a grantor trust which meets the requirements of Revenue Procedure
92-65 (as amended or superseded from time to time), the trustee of which shall
be a financial institution selected by the Holding Company with the approval of
the Officer (which approval shall not be unreasonably withheld or delayed),
pursuant to a trust agreement the terms of which are approved by the Officer
(which approval shall not be unreasonably withheld or delayed) (the “Rabbi
Trust”), and payments made shall include earnings on the investments made with
the assets of the Rabbi Trust, which investments shall consist of short-term
investment grade fixed income securities or units of interest in mutual funds or
other pooled investment vehicles designed to invest primarily in such
securities. Furthermore, this Agreement shall be construed and administered in
such manner as shall be necessary to effect compliance with Section
409A.

     

    
      	
              Section
    25.

            	
              Compliance with the Emergency
      Economic Stabilization Act of
2008.

            

    

     

    In the
event the Holding Company issues any debt or equity to the United States
Treasury ("UST") pursuant to the Capital Purchase Program (the "CPP")
implemented under the Emergency Economic Stabilization Act of 2008 ("EESA"), the
following provisions shall take precedence over any contrary provisions of this
Agreement or any other compensation or benefit plan, program, agreement or
arrangement in which the Officer participates:

     

    (a)           The
Officer shall repay to the Holding Company any bonus or incentive compensation
paid to the Officer while (i) the Officer is a senior executive officer (within
the meaning of 31 C.F.R. Part 30) ("Senior Executive Officer") and (ii) the UST
holds any debt or equity interest in the Holding Company acquired under the CPP
(such period, the "CPP Compliance Period"), if and to the extent that such bonus
or incentive compensation was paid on the basis of a statement of earnings,
gains, or other criteria (each, a "Performance Criterion," and in the aggregate,
"Performance Criteria") that are later proven to be materially
inaccurate.  A Performance Criterion shall be proven to be materially
inaccurate if so determined by a court of competent jurisdiction or in the
written opinion of an independent attorney or firm of certified public
accountants selected by the Holding Company and approved by the Officer (which
approval shall not be unreasonably withheld or delayed), which determination
shall both state the accurate Performance Criterion and that the difference
between the accurate Performance Criterion and the Performance Criterion on
which the payment was based is material (a "Determination").  Upon
receipt of a Determination, the Holding Company may supply to the Officer a copy
of the Determination, a computation of the bonus or other incentive compensation
that would have been payable on the basis of the accurate Performance Criterion
set forth in the Determination (the "Determination Amount") and a written demand
for repayment of the amount (if any) by which the bonus or incentive
compensation actually paid exceeded the Determination Amount.

     

    (b)           (i)           If
the Officer's employment terminates in an “applicable severance from employment”
(within the meaning of 31 C.F.R. Part 30) while (A) the Officer is a Senior
Executive Officer, and (B) the UST holds a debt or equity interest in the
Holding Company issued under the CPP, then payments to the Officer that are
contingent on such applicable severance from employment and designated to be
paid during the CPP Compliance Period shall be limited, if necessary, to the
maximum amount which may be paid without causing any amount paid to be an
"excess parachute payment" within the meaning of section 280G(b)(1) of the Code,
as modified by section 280G(e) of the Code, referred to as a "golden parachute
payment" under 31 C.F.R. Part 30 (the "Maximum Payment Amount").  Any
reduction in payments required to achieve such limit shall be applied to all
payments otherwise due hereunder in the reverse chronological order of their
payment dates, and where multiple payments are due on the same date, the
reduction shall be apportioned ratably among the affected
payments.  The required reduction (if any) shall be determined in
writing by an independent attorney or firm of certified public accountants
selected by the Holding Company and approved by the Officer (which approval
shall not be unreasonably withheld or delayed).

     

    (ii)           To
the extent not prohibited by law, the aggregate amount by which payments
designated to be paid during the CPP Compliance Period are reduced pursuant to
section 25(b)(i) (the "Unpaid Amount") shall be delayed to and shall be paid on
the first business day following the last day of the CPP Compliance
Period.  Pending payment, the Unpaid Amount shall be deposited in a
Rabbi Trust.  Payment of the Unpaid Amount shall include any
investment earnings on the assets of the Rabbi Trust attributable to the Unpaid
Amount.

     

    This
section 25 shall be operated, administered and construed to comply with section
111(b) of EESA as implemented by guidance or regulation thereunder that has been
issued and is in effect as of the closing date of the agreement, if any, by and
between the UST and the Holding Company, under which the UST acquires equity or
debt securities of the Holding Company under the CPP (such date, if any, the
"Closing Date," and such implementation, the "Relevant
Implementation").  If after the Closing Date the clawback requirement
of section 25(a) shall not be required by the Relevant Implementation of section
111(b) of EESA, such requirement shall have no further effect.  If
after the Closing Date the limitation on golden parachute payments under section
25(b)(i) shall not be required by the Relevant Implementation of section 111(b)
of EESA, such limitation shall have no further effect and any Unpaid Amount
delayed under section 25(b)(ii) shall be paid on the earliest date on which the
Holding Company reasonably anticipates that such amount may be paid without
violating such limitation.

    

    IN WITNESS WHEREOF, the Bank
and the Holding Company have caused this Agreement to be executed and the
Officer has hereunto set his hand, all as of the day and year first above
written.

     

    _______________________________________

    TIMOTHY
B. KING / MICHAEL PUCELLA

    

    

    
      	
              ATTEST:

            	
              THE
      DIME SAVINGS BANK of WILLIAMSBURGH

            

    

     

    By:
________________________

    Secretary

    [Seal]                                                                           By:
___________________________________

    Name : Vincent F.
Palagiano

    Title : Chairman of the Board &
CEO

     

    ATTEST:                                                                           DIME
COMMUNITY BANCSHARES, INC.

     

    By:
________________________

    Secretary                                                            By:
___________________________________

    [Seal]                                                                                Name : Vincent F.
Palagiano

    Title : Chairman of the Board &
CEO

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    STATE OF
NEW YORK   )

    :ss.:

    COUNTY OF
KINGS     )

    

    On this ____day of ______, 2008 before
me personally came Timothy B. King, to me known, and known to me to be the
individual described in the foregoing instrument, who, being by me duly sworn,
did depose and say that he resides at the address set forth in said instrument,
and that he signed his name to the foregoing instrument.

     

    

    Notary Public

     

    STATE OF
NEW YORK   )

    :ss.:

    COUNTY OF
KINGS     )

    

    On this___ day of ______, 2008 before
me personally came Vincent F. Palagiano to me known, who, being by me duly
sworn, did depose and say that he resides at 44 Direnzo Court, Staten Island,
N.Y., that he is a member of the Board of Directors of THE DIME SAVINGS BANK OF
WILLIAMSBURGH, the savings bank described in and which executed the foregoing
instrument; that he knows the seal of said mutual savings bank; that the seal
affixed to said instrument is such seal; that it was so affixed by authority of
the Board of Directors of said savings bank; and that he signed his name thereto
by like authority.

     

    

    Notary Public

     

    STATE OF
NEW YORK   )

    :ss.:

    COUNTY OF
KINGS     )

    

    On this ____day of _______, 2008 before
me personally came Vincent F. Palagiano, to me known, who, being by me duly
sworn, did depose and say that he resides at 44 Direnzo Court, Staten Island, N.
Y., that he is a member of the Board of Directors of DIME COMMUNITY BANCSHARES,
INC., the corporation described in and which executed the foregoing instrument;
that he knows the seal of said corporation; that the seal affixed to said
instrument is such seal; that it was so affixed by order of the Board of
Directors of said corporation; and that he signed his name thereto by like
order.

     

    

    Notary Publicexhibit10-8.htm

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      

       

      

       

      

       

      

       

      

       

      

       

      

       

      

       

      

       

      

       

      BENEFIT
MAINTENANCE PLAN

       

      OF

       

      DIME
COMMUNITY BANCSHARES, INC.

       

      

       

      

       

      

       

      

       

      _________________________________

      

      

      

      

      

      

      

      Adopted
Effective as of November 1, 1992

       Amended
and Restated Effective as of December 31, 2008

      
        
          
          

           

        

        
           

          
            

          

        

        
           

        

      

      

      TABLE OF
CONTENTS

       

      

      
        
          	 
      	 
      	
                  Page

                
	
                  ARTICLE
      I -DEFINITIONS

                	 
      
	
                  Section
      1.1

                	
                  Actuarial
      Equivalent

                	
                  1

                
	
                  Section
      1.2

                	
                  Affiliated
      Employer

                	
                  1

                
	
                  Section
      1.3

                	
                  Applicable
      Limitation

                	
                  1

                
	
                  Section
      1.4

                	
                  Bank

                	
                  2

                
	
                  Section
      1.5

                	
                  Beneficiary

                	
                  2

                
	
                  Section
      1.6

                	
                  Board

                	
                  2

                
	
                  Section
      1.7

                	
                  Change
      in Control

                	
                  2

                
	
                  Section
      1.8

                	
                  Code

                	
                  2

                
	
                  Section
      1.9

                	
                  Committee

                	
                  2

                
	
                  Section
      1.10

                	
                  Company

                	
                  2

                
	
                  Section
      1.11

                	
                  Disability

                	
                  2

                
	
                  Section
      1.12

                	
                  Eligible
      Employee

                	
                  2

                
	
                  Section
      1.13

                	
                  Employee

                	
                  3

                
	
                  Section
      1.14

                	
                  Employer

                	
                  3

                
	
                  Section
      1.15

                	
                  Employer
      Contributions

                	
                  3

                
	
                  Section
      1.16

                	
                  ERISA

                	
                  3

                
	
                  Section
      1.17

                	
                  ESOP

                	
                  3

                
	
                  Section
      1.18

                	
                  Exchange
      Act

                	
                  3

                
	
                  Section
      1.19

                	
                  Fair
      Market Value of a Share

                	
                  3

                
	
                  Section
      1.20

                	
                  Former
      Participant

                	
                  3

                
	
                  Section
      1.21

                	
                  Savings
      Plan

                	
                  3

                
	
                  Section
      1.22

                	
                  Memorandum
      Account

                	
                  4

                
	
                  Section
      1.23

                	
                  Participant
      Account

                	
                  4

                
	
                  Section
      1.24

                	
                  Plan

                	
                  4

                
	
                  Section
      1.25

                	
                  Retirement
      Plan

                	
                  4

                
	
                  Section
      1.26

                	
                  Specified
      Employee

                	
                  4

                
	
                  Section
      1.27

                	
                  Share

                	
                  4

                
	
                  Section
      1.28

                	
                  Stock
      Unit

                	
                  4

                
	
                  Section
      1.29

                	
                  Termination
      of Service

                	
                  4

                
	
                  Section
      1.30

                	
                  Unforeseeable
      Emergency

                	
                  4

                
	
                  ARTICLE
      II -PARTICIPATION

                	
                  5

                
	
                  Section
      2.1

                	
                  Eligibility
      for Participation

                	
                  5

                
	
                  Section
      2.2

                	
                  Commencement
      of Participation

                	
                  5

                
	
                  Section
      2.3

                	
                  Termination
      of Participation

                	
                  5

                
	
                  ARTICLE
      III -BENEFITS TO PARTICIPANTS

                	
                  5

                
	
                  Section
      3.1

                	
                  Supplemental
      Retirement Benefit

                	
                  5

                
	
                  Section
      3.2

                	
                  Supplemental
      Savings Benefiit

                	
                  6

                
	
                  Section
      3.3

                	
                  Supplemental
      ESOP Benefits

                	
                  8

                
	
                  ARTICLE
      IV -DEATH BENEFITS

                	
                  11

                
	
                  Section
      4.1

                	
                  Supplemental
      Retirement Plan Death Benefits

                	
                  11

                
	
                  Section
      4.2

                	
                  Supplemental
      Savings Plan Death Benefits

                	
                  11

                
	
                  Section
      4.3

                	
                  Supplemental
      ESOP Death Benefits

                	
                  11

                
	
                  Section
      4.4

                	
                  Beneficiaries

                	
                  11

                
	
                  ARTICLE
      V -DISTRIBUTIONS

                	
                  12

                
	
                  Section
      5.1

                	
                  Scheduled
      Distributions to Participant

                	
                  12

                
	
                  Section
      5.2

                	
                  Mandatory
      Cashout of Small Balances

                	
                  13

                
	
                  Section
      5.3

                	
                  Restrictions
      on Payments to Specified Employees

                	
                  13

                
	
                  Section
      5.4

                	
                  One-Time
      Election During

                	
                  13

                
	
                  ARTICLE
      VI -TRUST FUND

                	
                  14

                
	
                  Section
      6.1

                	
                   Establishment
      of Trust

                	
                  14

                
	
                  Section
      6.2

                	
                   Contributions
      to Trust

                	
                  14

                
	
                  Section
      6.3

                	
                   Unfunded
      Character of Plan

                	
                  14

                
	
                  Section
      6.4

                	
                  Payments
      in the Event of a Change in Control

                	
                  14

                
	
                  ARTICLE
      VII -ADMINISTRATION

                	
                  15

                
	
                  Section
      7.1

                	
                  The
      Committee

                	
                  15

                
	
                  Section
      7.2

                	
                  Liability
      of Committee Members and their Delegates

                	
                  16

                
	
                  Section
      7.3

                	
                  Plan
      Expenses

                	
                  16

                
	
                  Section
      7.3

                	
                  Facility
      of Payment

                	
                  16

                
	
                  ARTICLE
      VIII -AMENDMENT AND TERMINATION

                	
                  16

                
	
                  Section
      8.1

                	
                  Amendment
      by the Company

                	
                  16

                
	
                  Section
      8.2

                	
                  Termination

                	
                  17

                
	
                  Section
      8.3

                	
                  Amendment
      or Termination by Other Employers

                	
                  17

                
	
                  ARTICLE
      IX -MISCELLANEOUS PROVISIONS

                	
                  17

                
	
                  Section
      9.1

                	
                  Construction
      and Language

                	
                  17

                
	
                  Section
      9.2

                	
                  Headings

                	
                  17

                
	
                  Section
      9.3

                	
                  Non-Alienation
      of Benefits

                	
                  18

                
	
                  Section
      9.4

                	
                   Indemnification

                	
                  18

                
	
                  Section
      9.5

                	
                  Severability

                	
                  18

                
	
                  Section
      9.6

                	
                  Waiver

                	
                  18

                
	
                  Section
      9.7

                	
                  Governing
      Law

                	
                  18

                
	
                  Section
      9.8

                	
                  Taxes

                	
                  19

                
	
                  Section
      9.9

                	
                  No
      Deposit Account

                	
                  19

                
	
                  Section
      9.10

                	
                  No
      Right to Continued Employment

                	
                  19

                
	
                  Section
      9.11

                	
                  Status
      of Plan Under ERISA

                	
                  19

                
	
                  Section
      9.12

                	
                  Compliance
      with Section 409A of the Code

                	
                  19

                
	
                  ARTICLE
      X -EFFECTIVE DATE OF THE AMENDED AND RESTATED PLAN

                	
                  20

                

        

      

      

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

        

      

      Benefit Maintenance
Plan

       

      Of

       

      Dime Community Bancshares,
Inc.

       

      

       

      ARTICLE I

       

      DEFINITIONS

       

      Wherever
appropriate to the purposes of the Plan, capitalized terms shall have the
meanings assigned to them under the Retirement Plan, Savings Plan or ESOP, as
applicable; provided,
however, that the following special definitions shall apply for purposes
of the Plan, unless a different meaning is clearly indicated by the
context:

       

      Section
1.1                                Actuarial
Equivalent means
a benefit of equivalent value determined on the basis of interest rate and
mortality assumptions prescribed under the Retirement Plan.  If it
shall be necessary to determine an Actuarial Equivalent in any case for which
interest rate and mortality assumptions shall not have been prescribed under the
Retirement Plan, the Actuarial Equivalent shall be determined using the interest
rate and mortality assumptions prescribed by the Commissioner of Internal
Revenue pursuant to section 417(e) of the Code for the month in which the
determination is being made.

       

      Section
1.2                                Affiliated
Employer means any corporation which is a member of a controlled group of
corporations (as defined in section 414(b) of the Code) that includes the
Company; any trade or business (whether or not incorporated) that is under
common control (as defined in section 414(c) of the Code) with the Company; any
organization (whether or not incorporated) that is a member of an affiliated
service group (as defined in section 414(m) of the Code) that includes the
Company; any leasing organization (as defined in section 414(n) of the Code) to
the extent that any of its employees are required pursuant to section 414(n) of
the Code to be treated as employees of the Company; and any other entity that is
required to be aggregated with the Company pursuant to regulations under section
414(o) of the Code.

       

      Section
1.3                                Applicable
Limitation means any of the following: (a) the limitation on annual
compensation that may be recognized under a tax-qualified plan for benefit
computation purposes pursuance to section 401(a)(17) of the Code; (b) the
maximum limitation on annual benefits payable by a tax-qualified defined benefit
plan pursuant to section 415(b) of the Code; (c) the maximum limitation on
annual additions to a tax-qualified defined contribution plan pursuant to
section 415(c) of the Code; (d) the maximum limitation on aggregate annual
benefits and annual additions under a combination of tax-qualified defined
benefit and defined contribution plans maintained by a single employer pursuant
to section 415(e) of the Code; (e) the maximum limitation on annual elective
deferrals to a qualified cash or deferred arrangement pursuant to section 402(g)
of the Code; (f) the annual limitation on elective deferrals under a qualified
cash or deferred arrangement by highly compensated employees pursuant to section
401(k) of the Code; and (g) the annual limitation on voluntary employee
contributions by, and employer matching contributions for, highly compensated
employees pursuant to section 401(m) of the Code.

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      Section
1.4                                Bank
means The Dime Savings Bank of Williamsburgh, a federal stock savings bank, and
its successors or assigns.

       

      Section
1.5                                Beneficiary means any person, other
than a Participant or Former Participant, who is determined to be entitled to
benefits under the terms of the Plan.

       

      Section
1.6                                Board means the Board of
Directors of the Company.

       

      Section
1.7                                Change
in Control means, with respect to a Participant:  (a) a change
in ownership of the Participant’s Relevant Corporation (as defined below); (b) a
change in effective control of the Participant’s Relevant Corporation; or (c) a
change in the ownership of a substantial portion of the assets of the
Participant’s Relevant Corporation.  The existence of a Change in
Control shall be determined by the Committee in accordance with section 409A of
the Code and the regulations thereunder.  For purposes of this
section, Relevant Corporation means, with respect to a Participant on any
date:  (w) the corporation for which the Participant is performing
services on such date; (x) all corporations that are liable to the Participant
for the benefits due to him under the Plan; (y) a corporation that is a majority
shareholder of a corporation described in section 1.7(w) or (x); or (z) any
corporation in a chain of corporations each of which is a majority shareholder
of another corporation in the chain, ending in a corporation described in
section 1.7(w) or (x).

       

      Section
1.8                                Code
means the Internal Revenue Code of 1986 (including the corresponding provisions
of any prior law or succeeding law).

       

      Section
1.9                                Committee means the Compensation
Committee of the Board of Directors of the Company, or such other person,
committee or other entity as shall be designated by or on behalf of the Board to
perform the duties set forth in Article VII.

       

      Section
1.10                                Company
means, Dime Community Bancshares, Inc., a Delaware corporation, any successor
thereto.

       

      Section
1.11                                Disability means,
with respect to a Participant, any medically determinable physical or mental
impairment which can be expected to result in death or to last for a continuous
period of at least twelve (12) months and as a result of which either: (a) the
Participant is unable to engage in any substantial gainful activity or (b) the
Participant has been receiving income replacement benefits for a period of at
least three (3) months under an accident and health plan covering employees of
the Participant’s employer; provided, however, that a Participant will be deemed
disabled and a Disability will be deemed to exist under the Plan if such
Participant is determined to be totally disabled by the Social Security
Administration or Railroad Retirement Board.  The existence of a
Disability shall be determined by the Committee in accordance with section 409A
and the regulations thereunder.

       

      Section
1.12                                Eligible
Employee means an Employee who is eligible for participation in the Plan
in accordance with the provisions of Article II.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      Section
1.13                                Employee
means any person, including an officer, who is employed by the
Employer.

       

      Section
1.14                                Employer
means Dime Community Bancshares, Inc., and any successor thereto and The Dime
Savings Bank of Williamsburgh and any successor thereto and any Affiliated
Employer which, with the prior written approval of the Board of Directors of
Dime Community Bancshares, Inc. and subject to such terms and conditions as may
be imposed by the Board of Directors of Dime Community Bancshares, Inc., shall
adopt this Plan.

       

      Section
1.15                                Employer
Contributions means contributions by any Employer to the Savings Plan or
the ESOP.

       

      Section
1.16                                ERISA
means the Employee Retirement Income Security Act of 1974, as amended from time
to time (including the corresponding provisions of any succeeding
law).

       

      Section
1.17                                ESOP
means the Employee Stock Ownership Plan of Dime Community Bancshares, Inc. and
Certain Affiliates, as amended from time to time (including the corresponding
provisions of any successor qualified employee stock ownership plan adopted by
the Company).

       

      Section
1.18                                Exchange
Act  means
the Securities Exchange Act of 1934, as amended from time to time (including the
corresponding provisions of any succeeding law).

       

      Section
1.19                                Fair
Market Value of a Share means, with respect to a Share on a specified
date:

       

      (a)           the
final reported sales price on the date in question (or if there is no reported
sale on such date, on the last preceding date on which any reported sale
occurred) as reported in the principal consolidated reporting system with
respect to securities listed or admitted to trading on the principal United
States securities exchange on which the Shares are listed or admitted to
trading; or

       

      (b)           if
the Shares are not listed or admitted to trading on any such exchange, the
closing bid quotation with respect to a Share on such date on the National
Association of Securities Dealers Automated Quotations System, or, if no such
quotation is provided, on another similar system, selected by the Committee,
then in use; or

       

      (c)           if
sections 1.19(a) and (b) are not applicable, the fair market value of a Share as
the Committee may determine.

       

      Section
1.20                                Former
Participant means a person whose participation in the Plan has terminated
as provided under section 1.30.

       

      Section
1.21                                Savings
Plan means the 401(k) Savings Plan of The Dime Savings Bank of
Williamsburgh, as amended from time to time (including the provisions of any
successor qualified defined contribution plan adopted by the
Company).

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      Section
1.22                                Memorandum
Account means,
collectively, all of the accounts that hold all of the deferred compensation
credited to a Participant under Article III reduced to reflect
distributions.

       

      Section
1.23                                Participant Account means
any person who is participating in the Plan in accordance with its
terms.

       

      Section
1.24                                Plan
means the Benefit Maintenance Plan of Dime Community Bancshares, Inc., as
amended from time to time (including the corresponding provisions of any
successor plan adopted by the Company).

       

      Section
1.25                                Retirement
Plan means the Retirement Plan of The Dime Savings Bank of Williamsburgh,
as amended from time to time (including the corresponding provisions of any
successor qualified defined benefit plan adopted by the Bank).

       

      Section
1.26                                Specified
Employee has
the meaning set forth in section 409A of the Code.

       

      Section
1.27                                Share means a share of common
stock, par value $.01 per share, of Dime Community Bancshares.,
Inc.

       

      Section
1.28                                Stock
Unit means a right to receive a payment under the Plan in an amount
equal, on the date as of which such Payment is made, to the Fair Market Value of
a Share.

       

      Section
1.29                                Termination
of Service means cessation of all services to all Relevant Employers (as
defined below) in all capacities other than as a director of such Relevant
Employer’s board of directors.  The occurrence of a Termination of
Service shall be determined by the Committee in accordance with the rules for
determining whether a "separation from service" has occurred under section 409A
of the Code and the regulations thereunder.  For purposes of this
section, Relevant Employer means, with respect to a Participant on any date: any
Employer for whom the Participant performs services and with respect to whom the
Participant's rights under this Plan arise, and any corporation, or trade or
business whether or not incorporated, that is considered a "single employer"
with such Employer within the meaning of section 414(b) or section 414(c) of the
Code; provided that when applying sections 1563(a)(1), (2) and (3) of the Code
or Treasury Regulation section 1.414(c)-2 pursuant to section 414(b) or section
414(c) of the Code, the phrase "at least 50 percent" shall be used instead of
the phrase "at least 80 percent" in each place it appears therein.

       

      Section
1.30                                Unforeseeable
Emergency means,
with respect to a Participant, a severe financial hardship to the Participant
resulting from an illness or accident of the Participant, the Participant’s
spouse, beneficiary or dependent (within the meaning of section 152 of the Code,
without regard to sections 152(b)(1), (b)(2), and (d)(1)(B) of the Code), loss
of the Participant’s property due to casualty, or other similar extraordinary
and unforeseeable circumstances arising as a result of events beyond the control
of the Participant.  The existence of an Unforeseeable Emergency shall
be determined by the Committee in accordance with section 409A of the Code and
the regulations thereunder.

       

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      

       

      ARTICLE
II

      PARTICIPATION

       

      Section
2.1                                Eligibility for
Participation.

       

      Only
Eligible Employees may be or become Participants. An Employee shall become an
Eligible Employee if:

       

      (a)           he
has been designated an Eligible Employee by resolution of the Committee;
and

       

      (b)           he
is a Participant in the Retirement Plan, the Savings Plan or the ESOP, or any
combination thereof, and the benefits to which he is entitled thereunder are
limited by one or more of the Applicable Limitations;

       

      provided, however, that no
person shall be named an Eligible Employee, nor shall any person who has been an
Eligible Employee continue as an Eligible Employee, to the extent that such
person's participation, or continued participation, in the Plan would cause the
Plan to fail to be considered maintained for the primary purpose of providing
deferred compensation for a select group of management or highly compensated
employees for purposes of ERISA.

       

      Section
2.2                                Commencement of
Participation

       

      An
Employee shall become a Participant on the date when he first becomes an
Eligible Employee, unless the Committee shall, by resolution, establish an
earlier or later effective date of participation for a Participant.

       

       Termination of
Participation

       

      Participation
in the Plan shall cease on the earlier of (a) the date of the Participant's
Termination of Service or (b) the date on which he ceases to be an Eligible
Employee.

       

      

       

      

       

      ARTICLE
III

      BENEFITS TO
PARTICIPANTS

       

      Section
3.1                                Supplemental Retirement
Benefit

       

      (a)           A
Participant whose benefits under the Retirement Plan are limited by one or more
of the Applicable Limitations shall be eligible for a supplemental retirement
benefit under this Plan in an amount equal to the excess of:

       

      (i)           the
retirement benefit to which he would be entitled under the Retirement Plan in
the absence of the Applicable Limitations; over

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      (ii)           the
actual retirement benefit to which he is entitled under the Retirement
Plan;

       

      in each
case computed as of the date on which his benefit under the Retirement Plan is
scheduled to commence and on the basis of the benefit form selected by him under
the Retirement Plan; provided,
however, that if the Participant dies before the payment of such
supplemental retirement benefit begins, no benefit shall be payable under this
section 3.1 and the survivor benefit, if any, which may be payable shall be
determined under section 4.1.

       

      (b)           The
supplemental retirement benefit provided for in this section 3.1 shall be paid
in the form of a single life annuity commencing on the first day of the month
coincident with or next following the Participant's Termination of Service or,
if later, the first day of the month coincident with or next following
Participant's 65th birthday. Notwithstanding the foregoing, a Participant may,
subject to the restrictions in section 5.1, within thirty (30) days after first
becoming eligible to participate in the Plan for purpose of receiving a
supplemental retirement benefit, elect that such supplemental retirement benefit
(to the extent that such benefit is attributable to compensation for services
performed after such election) be paid in a different form or commencing at a
different time by filing a written election, in such form and manner as the
Committee may provide, within such thirty (30) day period, and the amount of
such benefit shall be the Actuarial Equivalent of the benefit payable in the
absence of such an election.

       

      (c)           Notwithstanding
section 3.1(b), subject to the consent of the Committee in its sole and absolute
discretion, each Participant may, by written election given in such form and
manner as the Committee may prescribe, elect to change the time and manner of
distribution of the balance credited to the supplemental retirement benefit;
provided, however,
that:

       

      (i)           any
such election shall not take effect until twelve (12) months after it is
received by the Committee;

       

      (ii)           in
the case of an election to defer a payment to be made on account of an event
other than the Participant’s death, Disability or Unforeseeable Emergency, the
first payment made under such election shall not occur until at least five (5)
years later than such payment would otherwise have been made (or begin to be
made); and

       

      (iii)           any
such election is subject to the restrictions in section 5.1.

       

      Section
3.2                                Supplemental Savings
Benefit.

       

      (a)           A
Participant whose benefits under the Savings Plan are limited by one or more of
the Applicable Limitations shall be eligible for a supplemental savings benefit
under this Plan in an amount equal to:

       

      (i)           the
aggregate amount of Employer Contributions (including any reallocation of
amounts forfeited upon the termination of employment of others participating in
the Savings Plan) that would have been credited to the Participant's account
under the Savings Plan in the absence of the Applicable Limitations if for all
relevant periods he had made the maximum amount of elective deferrals under
section 402(g) of the Code or voluntary employee contributions under section
401(a) of the Code required to qualify for the maximum possible allocation of
Employer Contributions (and without regard to the amount of elective deferrals
or voluntary employee contributions actually made); over

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      (ii)           the
aggregate amount of Employer Contributions (including any reallocation of
amounts forfeited upon the termination of employment of others participating in
the Savings Plan) actually credited to the Participant's account under the
Savings Plan for such periods;

       

      adjusted
for earnings and losses as provided in section 3.2(b); provided, however, that if
the Participant dies before the payment of such supplemental savings benefit
begins, no benefit shall be payable under this section 3.2 and the survivor
benefit, if any, which may be payable shall be determined under section
4.2.

       

      (b)           The
Committee shall cause to be maintained a bookkeeping account to reflect all
Employer Contributions (including any reallocation of amounts forfeited upon the
termination of employment of others participating in the Savings Plan) that
cannot be made to a Participant's account under the Savings Plan due to the
Applicable Limitations and amounts under section 3.2(c), and shall cause such
bookkeeping account to be credited with all such Employer Contributions as of
the date on which such Employer Contributions would have been credited to the
Participant's account in the Savings Plan in the absence of the Applicable
Limitations. The balance credited to such bookkeeping account shall be adjusted
for distributions, withdrawals, earnings or losses as follows:

       

      (i)           except
as provided in section 3.2(b)(ii), the balance credited to such bookkeeping
account shall be credited with interest as of the last day of each calendar
month at a rate for such month equal to one-twelfth of the annualized yield on
30-year Treasury Securities, Constant Maturities, prescribed by the Commissioner
of Internal Revenue for such month pursuant to section 417(e) of the Code;
or

       

      (ii)           if
and to the extent permitted by the Committee, as though such Employer
Contributions had been contributed to a trust fund and invested, for the benefit
of the Participant, in such investments at such time or times as the Participant
shall have designated in such form and manner as the Committee shall
prescribe.

       

      (iii)           The
balance credited to the bookkeeping account shall be reduced for any
distributions or withdrawals.

       

      (c)           Effective
June 15, 2008, the balance credited to the bookkeeping accounts of Messrs.
Timothy King and Michael Pucella under this section 3.2 shall be adjusted as
follows:

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      (i)           in
the case of Mr. King, the balance credited to his a bookkeeping account shall be
credited with an additional Seven Thousand Seven Hundred Sixty-Eight Dollars
($7,768); and

       

      (ii)           in
the case of Mr. Pucella, the balance credited to his bookkeeping account shall
be credited with an additional Six Thousand One Hundred Ninety-One Dollars
($6,191).

       

      (d)           The
supplemental savings benefit payable to a Participant hereunder shall be paid in
a single lump sum within the first thirty days of the calendar year following
the calendar year in which the Participant's Termination of Service occurs and
shall be equal to the balance credited to his bookkeeping account as of the last
day of the last calendar month to end prior to the date of payment.
Notwithstanding the foregoing, a Participant may, subject to the restrictions in
section 5.1, within thirty (30) days after first becoming eligible to
participate in the Plan for purposes of receiving a supplemental savings
benefit, elect that such supplemental savings benefit (to the extent that such
benefit is attributable to compensation for services performed after such
election) be paid in a different form or commencing at a different time by
filing a written election, in such form and manner as the Committee may
prescribe, within such thirty (30) day period.

       

      (e)           Notwithstanding
section 3.2(d), subject to the consent of the Committee in its sole and absolute
discretion, each Participant may, by written election given in such form and
manner as the Committee may prescribe, elect to change the time and manner of
distribution of the balance credited to the supplemental savings benefit;
provided, however, that:

       

      (i)           any
such election shall not take effect until twelve (12) months after it is
received by the Committee;

       

      (ii)           in
the case of an election to defer a payment to be made on account of an event
other than the Participant’s death, Disability or Unforeseeable Emergency, the
first payment made under such election shall not occur until at least five (5)
years later than such payment would otherwise have been made (or begin to be
made); and

       

      (iii)           any
such election is subject to the restrictions in section 5.1.

       

      Section
3.3                                Supplemental ESOP
Benefits

       

      (a)           A
Participant whose benefits under the ESOP are limited by one of more of the
Applicable Limitations shall be eligible for a supplemental ESOP benefit under
this Plan in an amount equal to the sum of:

       

      (i)           for
each period for which an allocation of Shares is made under the ESOP, a number
of Stock Units the excess of (A) the number of Shares that bears the same
relationship to such Participant's compensation taken into account in
determining allocations under the ESOP (without regard to any limit on such
compensation pursuant to any Applicable Limitation) as the number of Shares
allocated for such period under the ESOP to an individual whose allocation is
not limited by any Applicable Limitation bears to such person's compensation
taken into account in determining allocations under the ESOP over (b) the actual
number of Shares allocated to such Participant under the ESOP for such period,
taking into account in both cases Shares allocated as a result of forfeitures;
and

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      (ii)           if
and to the extent that Employer Contributions to the ESOP result in allocations
to the Participant's account of assets other than Shares for any period, an
amount for each period equal to the excess (if any) of (A) the dollar amount
that bears the same relationship to such Participant's compensation taken into
account in allocating Employer Contributions under the ESOP (without regard to
any limit on such compensation pursuant to any Applicable Limitation) as the
dollar amount of Employer Contributions allocated for such period under the ESOP
to an individual whose allocation is not limited by any Applicable Limitation
bears to such person's compensation taken into account in determining
allocations under the ESOP over (b) the actual dollar amount of Employer
Contributions allocated to such Participant under the ESOP for such period,
taking into account in both cases dollar amounts allocated as a result of
forfeitures.

       

      adjusted
for earnings and losses as provided in section 3.3(b); provided, however, that if
the Participant dies before the payment of such supplemental ESOP benefit
begins, no benefit shall be payable under this section 3.3 and the survivor
benefit, if any, which may be payable shall be determined under section
4.3.

       

      (b)           The
Committee shall cause to be maintained a bookkeeping account to reflect all
Shares and Employer Contributions (including any reallocation of amounts
forfeited upon the termination of employment of others participating in the
ESOP) that cannot be allocated to a Participant's account under the ESOP due to
the Applicable Limitations and amounts under section 3.3(c), and shall cause
such bookkeeping account to be credited with such Employer Contributions and
Stock Units reflecting such Shares as of the date on which such Employer
Contributions and Shares, respectively, would have been credited to the
Participant's account in the ESOP in the absence of the Applicable Limitations.
The balance credited to such bookkeeping account shall be adjusted for
distributions, withdrawals, earnings or losses as follows:

       

      (i)           all
Stock Units shall be adjusted from time to time so that the value of a Stock
Unit on any date is equal to the Fair Market Value of Share on such date and the
number of Stock Units shall be adjusted as and when appropriate to reflect any
stock dividend, stock split, reverse stock split, exchange, conversion, or other
event generally affecting the number of Shares held by all holders of Shares;
and

       

      (ii)           (A)           except
as provided in section 3.3(b)(ii)(B), the balance credited to such bookkeeping
account that does not consist of Stock Units shall be credited with interest as
of the last day of each calendar month at a rate for such month
equal  to one twelfth of the annualized yield on 30-year Treasury
Securities, Constant Maturities, prescribed by the Commissioner of Internal
Revenue for such month pursuant to section 417(e) of the Code; or

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      (B)           if
and to the extent permitted by the Committee, the balance credited to such
bookkeeping account that does not consist of Stock Units shall be adjusted as
though such Employer Contributions had been contributed to a trust find and
invested, for the benefit of the Participant, in such investments at such time
or times as the Participant shall have designated in such form and manner as the
Committee shall prescribe;

       

      (iii)           The
balance credited to the bookkeeping account shall be reduced for any
distributions or withdrawals.

       

      provided, however, that to
the extent that the Participant shall receive on a current basis any dividend
paid with respect to Shares credited to his account under the ESOP, the
bookkeeping account established for him under this Plan shall not be adjusted to
reflect such dividend and, instead, the Participant shall be paid an amount per
Stock Unit equal to the dividend par Share received by the Participant under the
ESOP, at substantially the same time as such dividend is paid under the
ESOP.

       

      (c)           Effective
June 15, 2008, the balance credited to the bookkeeping accounts of Messrs.
Timothy King and Michael Pucella under this section 3.3 shall be adjusted as
follows:

       

      (i)           in
the case of Mr. King, the balance credited to his a bookkeeping account shall be
credited with an additional Twenty-Seven Thousand Sixty-Nine Dollars ($27,069);
and

       

      (ii)           in
the case of Mr. Pucella, the balance credited to his bookkeeping account shall
be credited with an additional Twenty-Two Thousand Five Hundred Seventy-Three
Dollars ($22,573).

       

      (d)           The
supplemental ESOP benefit payable to a Participant hereunder shall be paid in a
single lump sum within the first thirty days of the calendar year in which the
Participant's Termination of Service occurs and shall be in an amount equal to
the balance credited to his bookkeeping account. Notwithstanding the foregoing,
a Participant may, subject to the restrictions in section 5.1, within thirty
(30) days after first becoming eligible to participate in the Plan for purposes
of receiving a supplemental ESOP benefit, elect that such supplemental ESOP
benefit (to the extent that such benefit is attributable to compensation for
services performed after such election) be paid in a different form or
commencing at a different time by filing a written election, in such form and
manner as the Committee may prescribe, within such thirty (30) day
period.

       

      (e)           Notwithstanding
section 3.3(d), subject to the consent of the Committee in its sole and absolute
discretion, each Participant may, by written election given in such form and
manner as the Committee may prescribe, elect to change the time and manner of
distribution of the balance credited to the supplemental retirement benefit;
provided, however, that:

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      (i)           any
such election shall not take effect until twelve (12) months after it is
received by the Committee;

       

      (ii)           in
the case of an election to defer a payment to be made on account of an event
other than the Participant’s death, Disability or Unforeseeable Emergency, the
first payment made under such election shall not occur until at least five (5)
years later than such payment would otherwise have been made (or begin to be
made); and

       

      (iii)           any
such election is subject to the restrictions in section 5.1.

       

      

       

      

       

      ARTICLE
IV

      DEATH
BENEFITS

       

      Section
4.1                                Supplemental Retirement Plan
Death Benefits.

       

      If a
Participant who is eligible for a supplemental retirement benefit under section
3.1 dies before the payment of such benefit begins, a supplemental survivor's
retirement benefit shall be payable to the Participant's Beneficiary under this
Plan in amount equal to the excess (if any) of (a) the survivor's benefit that
would have been payable under the Retirement Plan commencing at the earliest
permissible date in the absence of the Applicable Limitations if the Participant
had effectively designated such Beneficiary as his beneficiary under the
Retirement Plan, over (b) the survivor's benefit would have been payable under
the Retirement Plan commencing at the earliest permissible date after giving
effect too the Applicable Limitations if the Participate had effectively
designated such Beneficiary as his beneficiary under the Retirement
Plan.  Such benefit shall be paid in a single lump sum which is the
Actuarial Equivalent of the benefit described in the preceding sentence within
the first thirty days of the calendar year following the death of the
Participant.

       

      Section
4.2                                Supplemental Savings Plan
Death Benefits.

       

      If a
Participant who is eligible for a supplemental savings benefit under section 3.2
dies before the payment of such benefit begins, a supplemental survivor's
savings benefit shall be payable to the Participant's Beneficiary under this
Plan in amount equal to the balance credited to the bookkeeping account
established for the Participant under section 3.2(b). Such benefit shall be paid
in a single lump within the first thirty days of the calendar year following the
death of the Participant and the bookkeeping account established for such
Participant pursuant to section 3.2(b) shall continue to be adjusted as provided
therein through the last day of the last calendar month to end prior to the date
of payment.

       

      Section
4.3                                Supplement ESOP Death
Benefits.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      If a
Participant who is eligible for a supplemental ESOP benefit under section 3.3
dies before the payment of such benefit begins, a supplemental ESOP benefit
shall be payable to the Participant's Beneficiary under this Plan in amount
equal to the balance credited to the bookkeeping account established for the
Participant under section 3.3(b). Such benefit shall be paid in a single lump
within the first thirty days of the calendar year following the death of the
Participant, and the bookkeeping account established for such Participant
pursuant to section 3.3(b) shall continue to be adjusted as provided therein
through the last day of the last calendar month to end prior to the date of
payment.

       

      Section
4.4                                Beneficiaries

       

      A
Participant or Former Participant may designate a Beneficiary or Beneficiaries
to receive any survivor benefits payable under the Plan upon his death. Any such
designation, or change therein or revocation thereof, shall be made in writing
in the form and manner prescribed by the Committee, shall be revocable until the
death of the Participant, and shall thereafter be irrevocable; provided, however, that any
change or revocation shall be effective only if received by the Committee prior
to the Participant's or Former Participant's death.  If a Participant
or Former Participant shall die without having effectively named a Beneficiary,
he shall be deemed to have named his estate as his sole Beneficiary. If a
Participant or Former Participant and his designated Beneficiary shall die in
circumstances which give rise to doubt as to which of them shall have been the
first to die, the Participant or Former Participant shall be deemed to have
survived the Beneficiary.  If a Participant or Former Participant
designates more than one Beneficiary, all shall be deemed to have equal shares
unless the Participant or Former Participant shall expressly provide
otherwise.

       

      

       

      

       

      ARTICLE
V

      DISTRIBUTIONS

       

      Section
5.1                                Scheduled Distributions to
Participant.

       

      If a
Participant so elects in his initial election to participate or in any
subsequent deferral election, payment of balances attributable to amounts
deferred pursuant to such election may be made:

       

      (a)           in
a single payment as of a designated date (not earlier than the first date such
balances are otherwise payable) specified by the Participant in his
election;

       

      (b)           in
the case of benefits under section 3.1 of this Plan, in a single life annuity or
such different form of payment provided for benefits under the Retirement Plan
as the Committee may provide; or

       

      (c)           in
the case of benefits under sections 3.2 or 3.3 of this Plan, in monthly,
quarterly or annual installments over such number of years (not to exceed
fifteen (15)) and payable beginning on such date (not earlier than the first
date such balances are otherwise payable) specified by the Participant in his
election.  In the event that payment is to be made in installments,
each installment shall be equal to the balance credited to the Participant’s
Memorandum Account (or, if applicable, the portion of such Participant’s
Memorandum Account attributable to sections 3.2 or 3.3 of this Plan) as of the
last day of the quarter ending immediately prior to the date on which payment is
to be made, divided by the number of installment payments remaining to be paid
(including the payment then being computed).

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      Section
5.2                                Mandatory Cashout of Small
Balances

       

      Notwithstanding
anything in the Plan to the contrary, if, as of December 31 of any calendar year
following a Participant’s Termination of Service, the balance credited to his
Memorandum Account is less than or equal to the applicable dollar amount under
section 402(g)(1)(B) of the Code, the entire balance credited to his Memorandum
Account shall be distributed in a single lump sum payment as soon as practicable
during the immediately following calendar year; provided, however that if the
Participant has deferrals of compensation under any other account balance plan
that would be aggregated with this plan for purposes of section 409A of the Code
pursuant to Treasury Regulation section 1.409A-1(c)(2)(i)(B), no distribution
shall be allowed under this section unless (a) the sum of (i) the balance
credited to the Participant's Memorandum Account and (ii) all amounts deferred
under such other plan or plans is less than or equal to the applicable dollar
amount under 402(g)(1)(B) of the Code, (b) all such other plans provide for such
a mandatory cashout distribution, and (c) all amounts deferred under all such
plans are distributed at the same time.

       

      Section
5.3                                Restrictions on Payments to
Specified Employees

       

      Notwithstanding
anything in the Plan to the contrary, to the extent required under section 409A
of the Code, any payment under this Plan that is made to a Specified Employee on
account of his Termination of Service shall be delayed and shall be paid on the
first day of the seventh month following such Participant’s Termination of
Service.

       

      Section
5.4                                One-Time Election During
2008

       

      Notwithstanding
anything in the Plan to the contrary, subject to the consent of the Committee in
its sole and absolute discretion, a Participant may, at any time prior to
January 1, 2009, elect a new time and form of payment for the balance credited
to his Memorandum Account (or, if applicable, the portion of such Participant’s
Memorandum Account attributable to section 3.1, 3.2 or 3.3 of this Plan) as of
December 31, 2008; provided,
however, that the payment (or the first payment in a series of payments)
(a) shall be made no earlier than January 1, 2009, (b) shall be made, in the
case of amounts attributable to section 3.1 of this Plan, in a single lump sum,
a single life annuity, or such different form of payment provided for benefits
under the Retirement Plan as of December 31, 2008 as the Committee may provide,
(c) shall be made, in the case of amounts attributable to section 3.2 or 3.3 of
this Plan, in a single lump sum or by monthly, quarterly or annual installments
for a period not to exceed fifteen (15) years, and (c) shall be made no earlier
than January 1 of the year immediately following the year of such Participant’s
Termination of Service.  Such an election shall be made in the form
and manner to be determined by the Committee.

       

      

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      ARTICLE
VI

      TRUST
FUND

       

      Section
6.1                                Establishment of
Trust

       

      The
Company may establish a trust fund which may be used to accumulate funds to
satisfy benefit liabilities to Participants, Former Participants and their
Beneficiaries under the Plan; provided, however, that the
assets of such trust shall be subject to the claims of the creditors of the
Company in the event that it is determined that the Company is insolvent; and
provided, further, that
the trust agreement shall contain such terms, conditions and provisions as shall
be necessary to cause the Company to be considered the owner of the trust fund
for federal, state or local income tax purposes with respect to all amounts
contributed to the trust fund or any income attributable to the investments of
the trust fund. The Company shall pay all costs and expenses incurred in
establishing and maintaining such trust. Any payments made to a Participant,
Former Participant or Beneficiary from a trust established under this section
6.1 shall offset payments which would otherwise be payable by the Company in the
absence of the establishment of such trust. Any such trust will conform to the
terms of the model trust described in Revenue Procedure 92-64, as the same may
be modified from time to time.

       

      Section
6.2                                Contributions to
Trus

       

      If a
trust is established in accordance with section 6.1, the Company shall make
contributions to such trust in such amounts and at such times as may be
specified by the Committee or as may be required pursuant to the terms of the
agreement governing the establishment and operation of such trust.

       

      Section
6.3                                Unfunded Character of
Plan.

       

      Notwithstanding
the establishment of a trust pursuant to section 6.1, the Plan shall be unfunded
for purposes of the Code and ERISA. Any liability of the Bank, the Company or
another Employer to any person with respect to benefits payable under the Plan
shall be based solely upon such contractual obligations, if any, as shall be
created by the Plan, and shall give rise only to a claim against the general
assets of the Bank, the Company or such Employer. No such liability shall be
deemed to be secured by any pledge or any other encumbrance on any specific
property of the Bank, the Company or any other Employer.

       

      Section
6.4                                Payments in the Event of a
Change in Control

       

      Notwithstanding
anything in the Plan to the contrary, in the event of a Change in Control of the
Company that occurs on or after January 1, 2008, all benefits under the Plan
that have not been paid prior to the occurrence of the Change in Control
(including but not limited to the remaining installment payments in a series of
installments) shall be paid in a single lump sum upon the occurrence of the
Change in Control; provided, however, to the extent such payments are regarded
as payments on account of a Termination of Service to an individual who is a
Specified Employee, payment shall, to the extent required to comply with section
409A of the Code, be deferred until the first day of the seventh calendar month
to begin after the occurrence of the individual's Termination of
Service.

       

      

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      ARTICLE
VII

      ADMINISTRATION

       

      Section
7.1                                The
Committee

       

      Except
for the functions reserved to the Company or the Board, the Administration of
the Plan shall be the responsibility of the Committee. The Committee shall have
the power and the duty to take all actions and to make all decisions necessary
or proper to carry out the Plan. The determination of the Committee as to any
question involving the general administration and interpretation of the Plan
shall be final, conclusive and binding. Any discretionary actions to be taken
under the Plan by the Committee shall be uniform in their nature and applicable
to all persons similarly situated. Without limiting the generality of the
foregoing, the Committee shall have the following powers:

       

      (a)           to
furnish to all Participants, upon request, copies of the Plan and to require any
person to furnish such information as it may request for the purpose of the
proper administration of the Plan as a condition to receiving any benefits under
the Plan;

       

      (b)           to
make and enforce such rules and regulations and prescribe the use of such forms
as it shall deem necessary for the efficient administration of the
Plan;

       

      (c)           to
interpret the Plan, and to resolve ambiguities, inconsistencies and omissions,
and the determinations of the Committee in respect thereof shall be binding,
final and conclusive upon all interested parties;

       

      (d)           to
decide on questions concerning the Plan in accordance with the provisions of the
Plan;

       

      (e)           to
determine the amount of benefits which shall be payable to any person in
accordance with the provisions of the Plan, to hear and decide claims for
benefits, and to provide a full and fair review to any Participant whose claim
for benefits has been denied in whole or in part;

       

      (f)           to
designate a person, who may or may not be a member of the Committee, as “plan
administrator” for purposes of the ERISA;

       

      (g)           to
allocate any such powers and duties to or among individual members of the
Committee; and

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

      (h)           the
power to designate persons other than Committee members to carry out any duty or
power which would otherwise be a responsibility of the Committee or
Administrator, under the terms of the Plan.

       

      Section
7.2                                Liability of Committee
Members and their Delegates

       

      To the
extent permitted by law, the Committee and any person to whom it may delegate
any duty or power in connection with administering the Plan, the Bank, the
Company, Employer, and the officers and directors thereof shall be entitled to
rely conclusively upon, and shall be fully protected in any action taken or
suffered by them in good faith In the reliance upon, any actuary, counsel,
accountant, other specialist, or other person selected by the Committee, or in
reliance upon any tables, valuations, certificates, opinions or reports which
shall be furnished by any of them. Farther, to the extent permitted by law, no
member of the Committee, nor the Bank, the Company, any Employer, nor the
officers or directors thereof, shall be liable for any neglect, omission or
wrongdoing of any other members of the Committee, agent, officer or employee of
the Bank, the Company or any Employer. Any person claiming benefits under the
Plan shall look solely to the Employer for redress.

       

      Section
7.3                                Plan
Expenses

       

      All
expenses incurred prior to the termination of the Plan that shall arise in
connection with the administration of the Plan (including, but not limited to
administrative expenses, proper charges and disbursements, compensation and
other expenses and charges of any actuary, counsel, accountant, specialist, or
other person who shall be employed by the Committee in connection with the
administration of the Plan), shall be paid by the Company.

       

      Section
7.4                                Facility of
Payment

       

      If the
Company is unable to make payment to any Participant, Former Participant
Beneficiary, or any other person to whom a payment is due under the Plan,
because it cannot ascertain the identity or whereabouts of such Participant,
Former Participant Beneficiary, or other person after reasonable efforts have
been made to identify or locate such person (including a notice of the payment
so due mailed to the last known address of such Participant, Former Participant
Beneficiary, or other person shown on the records of the Employer), such payment
and all subsequent payments otherwise due to such Participant, Former
Participant or other person shall be forfeited twenty-four (24) months after the
date such payment first became due; provided, however, that such payment and any
subsequent payments shall be reinstated, retroactively, no later than sixty (60)
days after the date on which the Participant, Former Participant, Beneficiary,
or other person is identified or located.

       

       

       ARTICLE
VIII 

      AMENDMENT
AND TERMINATION

       

       

      Section
8.1                                Amendment by the
Company

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      The
Company reserves the right, in its sole and absolute discretion, at any time and
from to time, by action of the Board, to amend the Plan in whole or in part. In
no event, however, shall any such amendment adversely affect the right of any
Participant, Former Participant or Beneficiary to receive any benefits under the
Plan in respect of participation for any period ending on or before the later of
the date on which such amendment is adopted or the date on which it is made
effective.

       

      Section
8.2                                Termination

       

      The
Company also reserves the right, in its sole and absolute discretion, by action
of the Board, to terminate the Plan. In such event, undistributed benefits
attributable to participation prior to the date of termination shall be
distributed as though each Participant terminated employment with the Bank, the
Company and all other Employers as of the effective date of termination of the
Plan.

       

      Section
8.3                                Amendment or Termination by
Other Employers

       

      In the
event that a corporation of trade or business other than the Company shall adopt
this Plan, such corporation or trade or business shall, by adopting the Plan,
empower the Company to amend or terminate the Plan, insofar as it shall cover
employees of such corporation or trade or business, upon the terms and
conditions set forth in sections 8.1 and 8.2; provided, however, that any such
corporation or trade or business may, by action of its board of directors or
other governing body, amend or terminate the Plan, insofar as it shall cover
employees of such corporation or trade or business, at different times and in a
different manner. In the event of any such amendment or termination by action of
the board of directors or either governing body of such a corporation or trade
or business, a separate plan shall be deemed to have been established for the
employees of such corporation or trade or business, and any amounts set aside to
provide for the satisfaction of benefit liabilities with respect to Employees of
such corporation or trade or business shall be segregated from the assets set
aside for the purposes of this Plan at the earliest practicable date and shall
be dealt with in accordance with the documents governing such separate
plan.

       

      

       

      

       

      ARTICLE
XIX

      MISCELLANEOUS
PROVISIONS

       

      Section
9.1                                Construction and
Language

       

      Wherever
appropriate in the Plan, words used in the singular may be read in the plural,
words in the plural may be read in the singular, and words importing the
masculine gender shall be deemed equally to refer to the feminine or the neuter.
Any reference to an Article or section shall be to an Article or section of the
Plan, unless otherwise indicated.

       

      Section
9.2                                Headings

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

      The
headings of Articles and sections are included solely for convenience of
reference. If there is any conflict between such headings and the text of the
Agreement, the text shall control.

       

      Section
9.3                                Non-Alienation of
Benefits

       

      Except as
may otherwise be required by law, no distribution or payment under the Plan to
any Participant, Former Participant or Beneficiary shall be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance or charge, whether voluntary or involuntary, and any attempt to so
anticipate, alienate, sell, transfer, assign, pledge, encumber or charge the
same shall be void; nor shall any such distribution or payment be in any way
liable for or subject to the debts, contracts, liabilities, engagements or torts
of any person entitled to such distribution or payment. If any Participant,
Former Participant or Beneficiary is adjudicated bankrupt or purports to
anticipate, alienate, sell, transfer, assign, pledge, encumber or charge any
such distribution or payment, voluntarily or involuntarily, the Committee, in
its sole discretion, may cancel such distribution or payment or may hold or
cause to be held or applied such distribution or payment, or any part thereof,
to or for the benefit of such Participant, Former Participant or Beneficiary, in
such manner as the Committee still direct; provided, however, that no
such action by the Committee shall cause the acceleration or deferral of any
benefit payments from the date on which such payments are scheduled to be
made.

       

      Section
9.4                                Indemnification

       

      The
Company shall indemnify, hold harmless and defend each Participant, Former
Participant and Beneficiary, against their reasonable costs, including legal
fees, incurred by them or arising out of any action, suit or proceeding in which
they may be involved, as a result of their efforts, in good faith, to defend or
enforce the obligation of the Bank, the Company and any other Employer under the
terms of the Plan.

       

      Section
9.5                                Severability

       

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

       

      Section
9.6                                Waiver

       

      Failure
to insist upon strict compliance with any of the terms, covenants or conditions
of the Plan shall not be deemed a waiver of such term, covenant or condition. A
waiver of any provision of the Plan 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
9.7                                Governing
Law

       

      The Plan
shall be construed, administered and enforced according to the laws of the State
of New York without giving effect to the conflict of laws principles thereof,
except to the extent that such laws are preempted by the federal laws of the
United States. Any payments made pursuant to this Plan are subject to and
conditioned upon their compliance with 12 U.S.C. § 1828(k) and any regulations
promulgated thereunder.

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

      Section
9.8                                Taxes

       

      The
Employer shall have the right to retain a sufficient portion of any payment made
under the Plan to cover the amount required to be withheld pursuant to any
applicable federal, state and local tax law.

       

      Section
9.9                                No Deposit
Account

       

      Nothing
in the Plan shall be held or construed to establish any deposit account for any
Participant or any deposit liability on the part of the Bank. Participants'
rights hereunder shall be equivalent to those of a general unsecured creditor of
each Employer.

       

      Section
9.10                                No Right to Continued
Employment

       

      Neither
the establishment of the Plan, nor any provisions of the Plan nor any action of
the Plan Administrator, the Committee or any Employer shall be held or construed
to confer upon any Employee any right to a continuation of employment by the
Employer. The Employer reserves the right to dismiss any Employee or otherwise
deal with any Employee to the same extent as though the Plan had not been
adopted.

       

      Section
9.11                                Status of Plan Under
ERISA

       

      The Plan
is intended to be (a) to the maximum extent permitted under applicable laws, an
unfunded, non-qualified excess benefit plan as contemplated by section 3(36) of
ERISA for the purpose of providing benefits in excess of the limitations imposed
under section 415 of the Code, and (b) to the extent not so permitted, an
unfunded, non-qualified  plan maintained primarily for the purpose of
providing deferred compensation for highly compensated employees, as
contemplated by sections 201(2), 301(a)(3) and 401(a)(1) of ERISA. The Plan is
not intended to comply with the requirements of section 401(a) of the Code or to
be subject to Parts 2, 3 and 4 of Title I of ERISA. The Plan shall be
administered and, construed so as to effectuate this intent.

       

      Section
9.12                                Compliance with Section 409A
of the Code

       

      The Plan
is intended to be a non-qualified deferred compensation plan described in
section 409A of the Code.  The Plan shall be operated, administered
and construed to give effect to such intent.  In addition,
notwithstanding Article VIII, the Plan shall be subject to amendment, with or
without advance notice to Participants and other interested parties, and on a
prospective or retroactive basis, including but not limited to amendment in a
manner that adversely affects the rights of participants and other interested
parties, to the extent necessary to effect such compliance.

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

      

       

      ARTICLE
X

      EFFECTIVE DATE OF THE
AMENDED AND RESTATED PLAN

       

      This
amended and restated Plan is effective from and after December 31,
2008.  Prior to December 31, 2008, the previous version of the Plan
that was amended and restated in June 1997 and incorporates amendments 1, 2, 3
& 4 shall control.

       

      

      
        
          
             

            

          

           

        

        
          20

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