Document:

<PAGE>

                                  EXHIBIT 10.1
<PAGE>

                           DEFERRED COMPENSATION PLAN

                                   RESOLUTION

     WHEREAS, Anthony J. Monteverdi, President and CEO has contributed
substantially to the success of the Flatbush Federal Savings & Loan Association
of Brooklyn; (Association) and

     WHEREAS, the Board of Directors of the Association desires that Anthony J.
Monteverdi continue in the employ of the Bank for an additional 5 years; and

     WHEREAS, to retain the services of Anthony J. Monteverdi the Board of
Directors of the Association desires to establish a Supplement Executive
Retirement Plan (SERP) for him in which he would receive, commencing at the end
of 5 years his actual retirement date, $93,000 a year payable monthly for a 10
year period.

     Resolved, therefore, that the Board of Directors of the Bank hereby
authorizes and directs the Bank's Counsel Robert Carrano, together with such
other counsel as he deems necessary, and as approved by the Board, to prepare a
Deferred Compensation Agreement between the Association and Mr. Monteverdi for
the Board Approval.

                       SALARY CONTINUATION PLAN AGREEMENT
                       ----------------------------------

     THIS AGREEMENT, made and entered into this 25th day of March 1999 by and
between Flatbush Federal Savings & Loan Association of Brooklyn, a Mutual
Association, chartered under the laws of the United States of America, with
principal offices and place of business in Brooklyn, New York (herein referred
to as the "Association" and Anthony J. Monteverdi, an individual residing in the
State New York (herein after referred to as the "Employee").

     WITNESSETH THAT:

     WHEREAS, the Employee is employed by the Association, and

     WHEREAS, the Association recognizes the value of the services performed by
this Employee and wishes to encourage his continued employment, and

     WHEREAS, the Employee wishes to be assured that he will be entitled to a
certain amount of additional compensation for some definite period of time from
and after his retirement from active service with the Association and that his
spouse will be entitled to a death benefit from and after the Employee's death,
either while in the employ of the Association or within 10 years of his
retirement from the service of the Association, and

     WHEREAS, the parties hereto wish to provide the terms and conditions upon
which the Association shall pay such additional compensation to the Employee
after his retirement or death benefit to his spouse after the Employee's death,
and

     WHEREAS, the parties hereto intend that this Agreement be considered an
unfunded arrangement maintained primarily to provide deferred compensation
benefits for the Employee,

<PAGE>

solely as a member of a select group of management employees of the Association,
for purposes of the Employee Retirement Security Act of 1974, as amended,

     NOW, THEREFORE, in consideration of the promises and of the mutual promises
herein contained, the parties hereto agree as follows:

1.   RETIREMENT BENEFIT
     ------------------

     a.   From and after the Employee's retirement from the service of the
Association at the end of 5 years from the date of this agreement, having
attained the age of seventy and one half (70 1/2) years, the Association shall
thereafter pay the Employee the sum of $93,000 per annum for a period of ten
(10) years from and after his retirement, payable in equal monthly installments,
commencing with the first day of the month following his retirement.

     b.   In the event of the Employee's death after termination of his
employment, but prior to the expiration of said ten (10)] year period, the
Association shall continue to make said payments, not to exceed five (5) years,
during the remainder of said ten (10)] year period to the Employee's spouse.

2.   DEATH BENEFIT
     -------------

     In the event of the death of the Employee while employed by the
Association, the Association shall thereafter pay to his spouse, an annual sum
payable monthly, for a period of five (5) years in accordance with the following
schedule;

     If death occurs:
          During the 1st year.................  $  18,000
          During the 2nd year.................     37,200
          During the 3rd year.................     55,800
          During the 4th year.................     74,400
          During the 5th year.................     93,000

3.   NON-COMPETITION DURING EMPLOYMENT
     ---------------------------------

     In consideration of the foregoing agreements of the Association and of the
payments to be made by the Association pursuant hereto, the Employee hereby
agrees that, so long as he remains employed by the Association, he will devote
substantially all of his time, skill, diligence and attention to the business of
the Association, and will not actively engage, either directly or indirectly, in
any business or other activity which is or may be deemed to be in any way
competitive with or adverse to the best interests of the business of the
Association.

4.   BENEFITS CONTINGENT ON CONTINUED EMPLOYMENT; NO CONTRACT OF EMPLOYMENT
     ----------------------------------------------------------------------

     a.   In the event that the employment of the Employee is terminated for any
reason other than his death, retirement from the service of the Association, or
disability, this Agreement shall thereupon automatically terminate, and the
Association shall have no further obligation hereunder.

                                       2
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     b.   Notwithstanding the provisions of Paragraph 4.a., in the event that
the Employee shall be totally and permanently disabled, the Employee shall be
entitled to benefits for a period of 10 years in accordance with the following
schedule;

     If total and permanent disability occurs:
            During the 1st year.........................  $  18,000
            During the 2nd year.........................     37,200
            During the 3rd year.........................     55,800
            During the 4th year.........................     74,400
            During the 5th year.........................     93,000

Total and permanent disability shall be substantiated by a doctor's examination
in the event the Employee shall be temporarily disabled but ultimately returns
to full time employment with the Association, he shall be entitled to the full
benefits of the deferred compensation program upon retirement if employed by the
Association at such date. If the Employee shall become temporarily disabled but
upon recovery determines not to return to full time employment with the
Association, he shall be entitled to benefits under the deferred compensation
program in accordance with the following schedule:

     If recovery occurs:
            During the 1st year.........................  $  18,000
            During the 2nd year.........................     37,200
            During the 3rd year.........................     55,800
            During the 4th year.........................     74,400
            During the 5th year.........................     93,000

     c.   Nothing contained in this Agreement shall be construed to be a
contract of employment for any term of years, nor as conferring upon the
Employee the right to continue to be employed by the Association in his present
capacity, or in any other capacity. It is expressly understood by the parties
hereto that this Agreement relates exclusively to additional compensation for
the Employee's services, which compensation is payable after his retirement from
active service of the Association or his death, or disability and is not
intended to be an employment contract.

5.   CHANGE OF CONTROL
     -----------------

     All Benefits payable, or that would become payable if the Employee were to
retire prior to such Change of Control, shall remain payable thereafter. Upon
termination of service following a Change of Control all benefits shall be
payable immediately in full.

     Change of Control means:

     1.   Sale of all or a material portion of the assets of the Association.

     2.   Merger of the Association with another financial institution whereby
          the Association is not the surviving entity.

                                       3
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     3.   An action by a Supervisory Governmental Agency causing a change in the
          Ownership, Corporation Structure, or organization of the Association
          without consent of the Association's Board of Directors.

     4.   It is hereby established that change of corporation structure by means
          of a change from a mutual to a stock corporation does not constitute a
          change of control.

     6.   NO TRUST CREATED

     Nothing contained in this Agreement, and no action taken pursuant to its
provisions by either party hereto, shall create, nor be construed to create, a
trust of any kind or a fiduciary relationship between the Association and the
Employee, his spouse or any other person.

7.   BENEFITS PAYABLE ONLY FROM GENERAL ASSOCIATION ASSETS
     -----------------------------------------------------

     a.   The payments to the Employee, or his spouse shall be made from assets
which shall continue, for all purposes, to be a part of the general,
unrestricted assets of the Association; no person shall have nor acquire any
interest in any such assets by virtue of the provisions of this Agreement. The
Association's obligation hereunder shall be an unfunded and unsecured promise to
pay money in the future. To the extent that the Employee or any person acquires
a right to receive payments from the Association under the provisions hereof,
such right shall be no greater than the right of any unsecured general creditor
of the Association: no such person shall have nor acquire any legal or equitable
right, interest or claim in or to any property or assets of the Association.

     b.   In the event that, in its discretion, the Association purchases an
insurance policy or policies insuring the life of the Employee (or any other
property) to allow the Association to recover the cost of providing the
benefits, in whole, or in part, hereunder, neither the Employee, nor his spouse
nor any other person shall have nor acquire any rights whatsoever therein or in
the proceeds therefrom. The Association shall be the sole owner and beneficiary
of any such policy or policies and, as such, shall possess and, may exercise all
incidents of ownership therein. No such policy, policies or other property shall
be held in any trust for the Employee or any other person nor as collateral
security for any obligation of the Association hereunder.

8.   NON-COMPETITION AFTER TERMINATION OF EMPLOYMENT AND CONSULTING AFTER
     RETIREMENT
     --------------------------------------------------------------------

     a.   The Employee expressly agrees that, as consideration for the
agreements of the Association contained herein and as a condition to the
performance by the Association of its obligations hereunder, throughout the
entire ten (10) year period following his retirement from the active service of
the Association during which the Association is obligated to make payments to
him, as provided herein, he will not, without the prior written consent of the
Association, engage in, become interested, directly or indirectly, as a sole
proprietor, as a partner in a partnership, or as a substantial shareholder in a
corporation, nor become associated with, in the capacity of an employee,
director, officer, principal, agent, trustee or in any other capacity
whatsoever, any enterprise conducted in the trading area of the business of the
Association which enterprise is, or may deemed to be, competitive with any
business carried on by the Association as of the date of the Employee's
retirement.

                                       4
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     b.   As further consideration for the agreements of the Association
contained herein and as a condition to the performance by the Association of its
obligations hereunder, throughout the entire ten (10) year period following his
retirement during which the Association is obligated to make payments to him, as
provided hereunder, the Employee expressly agrees to make himself available to
the Association for such advisory and consulting services on a part-time basis
as may, from time to time, be requested by the Board of Directors of the
Association. The provision of such services shall be subject to the following
conditions (i) in rendering such services, the Employee shall not be considered
an employee of the Association, but shall act in the capacity of an independent
contractor, and as such shall not be subject to control and direction by the
Board of Directors of the Association, but shall be subject to his own control
and direction in the performance of such services, (ii) such services shall be
performed in such place or places as the Employee may, from time to time
designate, (iii) the Employee shall not be required to devote a major part of
his time to such services, and (iv) the Employee shall not be required to render
such services during vacation periods or during any periods of illness or other
incapacity.

     c.   In the event of any breach by the Employee of the agreements and
covenants contained herein, the Board of Directors of the Association shall
direct that any unpaid balance of any payments to the Employee under this
Agreement be suspended, and shall thereupon notify the Employee of such
suspension, in writing. Thereupon, if the Board of Directors of the Association
shall determine that said breach by the Employee has continued for a period of
ninety days following notification of such suspension, all rights of the
Employee under this Agreement, including rights to further payments hereunder,
shall thereupon terminate.

9.   DETERMINATION OF BENEFITS CLAIMS PROCEDURE AND ADMINISTRATION
     -------------------------------------------------------------

     a.   Claim.

     A person who believes that he is being denied a benefit to which he is
entitled under the Plan (hereinafter referred to as a "Claimant") may file a
written request for such benefit with the Association, setting forth his claim.
The request must be addressed to the President of the Association at its then
principal place of business.

     b.   Claim Decision.

     Upon receipt of a claim, the Association shall advise the Claimant that a
reply will be forthcoming within ninety (90) days and shall, in fact, deliver
such reply within such period. The Association may, however, extend the reply
period for an additional ninety (90) days for reasonable cause.

     If the claim is denied in whole or in part, the Association shall adopt a
written opinion, using language calculated to be understood by the Claimant,
setting forth:

          a.   The specific reason or reasons for such denial;

          b.   The specific reference to pertinent provisions of this Agreement
               on which such denial is based;

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          c.   A description of any additional material or information necessary
               for the Claimant to perfect his claim and an explanation why such
               material or such information is necessary;

          d.   Appropriate information as to the steps to be taken if the
               Claimant wishes to submit the claim for review; and

          e.   The time limits for requesting a review under subsection c. and
               for review under subsection d. hereof.

     c.   Request for Review.

     Within sixty (60) days after the receipt by the Claimant of the written
opinion described above, the Claimant may request in writing that the Secretary
of the Association review the determination of the Association. Such request
must be addressed to the Secretary of the Association, at its then principal
place of business. The Claimant or his duly authorized representative may, but
need not, review the pertinent documents and submit issues and comments in
writing for consideration by the Association. If the Claimant does not request a
review of the Association's determination by the Secretary of the Association
within such sixty (60) day period, he shall be barred and estopped from
challenging the Association's determination.

     d.   Review of Decision.

     Within sixty (60) days after the Secretary's receipt of a request for
review, he will review the Association's determination. After considering all
materials presented by the Claimant, the Secretary will render a written
opinion, written in a manner calculated to be understood by the Claimant,
setting forth the specific reasons for the decision and containing specific
references to the pertinent provisions of this Agreement on which the decision
is based. If special circumstances require that the sixty (60) day time period
be extended, the Secretary will so notify the Claimant and will render the
decision as soon as possible, but no later than one hundred twenty (120) days
after receipt of the request for review.

10.  NON-ASSIGNABILITY OF BENEFITS
     -----------------------------

     Neither the Employee nor his spouse shall have any power or right to
transfer, assign, anticipate, hypothecate or otherwise encumber any part or all
of the amounts payable hereunder, which are expressly declared to be
unassignable and non-transferable. Any such attempted assignment or transfer
shall be void and shall terminate this Agreement; the Association shall
thereupon have no further liability hereunder. No amount payable hereunder
shall, prior to actual payment thereof, be subject to seizure by any creditor of
any such beneficiary for the payment of any debt, judgment or other obligation,
by a proceeding at law or in equity, nor transferable by operation of law in the
event of the bankruptcy, insolvency or death of the Employee or his spouse.

                                       6
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11.  AMENDMENT
     ---------

     This Agreement may not be amended, altered or modified, except by a written
instrument signed by the parties hereto, or their respective successors and may
not be otherwise terminated except as provided herein.

12.  INUREMENT
     ---------

     This Agreement shall be binding upon and inure to the benefit of the
Association and its successors and assigns, and the Employee, his successors,
heirs, executors, administrators and beneficiaries.

13.  NOTICES
     -------

     Any notice, consent or demand required or permitted to be given under the
provisions of this Agreement shall be in writing, and shall be signed by the
party giving or making the same. If such notice, consent or demand is mailed to
a party hereto, it shall be sent by United States certified mail, postage
prepaid, addressed to such party's last known address as shown on the records of
the Association. The date of such mailing shall be deemed the date of notice,
consent or demand.

14.  GOVERNING LAW
     -------------

     This Agreement, and the rights of the parties hereunder, shall be governed
by and construed in accordance with the laws of the State of New York.

                                       7
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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement,
duplicate, as of the day and year first above written.

                                           FLATBUSH FEDERAL SAVINGS & LOAN
                                           ASSOCIATION

By:  /s/ Anthony J. Monteverdi             By: /s/ Harold  G. McKinley
    --------------------------------           ---------------------------------
         Anthony J. Monteverdi                 Harold G. McKinley Vice-Chairman
                                               of the Board of Directors

ATTEST:  /s/ Robert Carrano
         -------------------------------
         Robert Carrano, Secretary

                                       8<PAGE>

                                  EXHIBIT 10.2

<PAGE>

                                  PLAN SUMMARY

Plan commencement date is June 1, 1999

     1.   PLAN ELIGIBILITY

          o    Directors who have attained the age of 65 years and a minimum of
               five years of service as an outside Director.

     2.   PLAN BENEFITS

          o    A monthly payment at the time of retirement of $600 per month for
               60 months.

          o    Benefits will be paid over a five year certain schedule, with
               spouse only entitled to any remaining payments in the event of a
               director's demise during this period.

          o    If an eligible Director dies prior to actual retirement, the
               spouse will receive the benefit for a 5 year period.

DISCLAIMER:

This is a brief summary of benefits and does not cover definitions or Articles
III through VI, for which you are required to consult the actual plan. This
summary is provided as a convenience and will not change any of the plan
provisions as set forth in the Directors Retirement Plan.

<PAGE>

             FLATBUSH FEDERAL SAVINGS & LOAN ASSOCIATION OF BROOKLYN

                            DIRECTORS RETIREMENT PLAN

WHEREAS: FLATBUSH FEDERAL SAVINGS AND LOAN ASSOCIATION OF BROOKLYN, (the
"Association") wishes to reward the years of extensive service provided by the
current members of the Board of Directors and to continue to attract and to
retain the best talent available to serve on its Board of Directors; and

WHEREAS, it is deemed advisable and in the best interest of the Association to
offer to its members of the Board of Directors additional financial incentives
in the form of deferred compensation, to encourage such participation and
service to the Association, as Directors; and

WHEREAS, at its meeting held on April 27, 1999, the Board of Directors of the
Association has authorized and adopted the Flatbush Federal Savings & Loan
Association Directors Retirement Plan (the "Plan"), effective June 1, 1999.

NOW THERERFORE, BE IT RESOLVED that the Plan shall be implemented effective June
1, 1999 as follows:

                                    ARTICLE I

                                   DEFINITIONS

The following words and phrases as used herein shall, for the purpose of the
Plan and any subsequent amendment thereof, have the following meanings unless a
different meaning is required by the content:

1.1  "BENEFICIARY" means the surviving spouse of the Participant (if any) as of
     the date of death of such Participant. The term Beneficiary shall not
     include the estate of the Participant or the estate of a Participant's
     spouse.

1.2  "BOARD" means the Board of Directors of the Association, as constituted
     from time to time, and successors thereto.

1.3  "CHANGE IN CONTROL" shall mean:

     Sale of all or a material portion of the assets of the Association.

     Merger of the Association with another financial institution whereby the
     Association is not the surviving entity.

     An action by a Supervisory Governmental Agency causing a change in the
     Ownership, Corporation Structure, or Organization of the Association
     without consent of the Association's Board of Directors.

     It is hereby established that change of corporation structure by means of a
     change from a mutual to a stock corporation does not constitute a change of
     control.

<PAGE>

1.4   "COMMITTEE" means the Board or the administrative committee as appointed
      by the Board pursuant to Section 6.11 herein.

1.5   "REGULATOR" means Department of Banking and/or the Office of Thrift
      Supervision or any successor (s) thereto.

1.6   "DIRECTOR" means an outside member of the Board of Directors of the
      Association.

1.7   "DISABILITY" means a mental or physical disability which prevents the
      Director from performing the normal duties of his or her position with the
      Association. The disability must have prevented the Director from
      performing his or her duties for a least three months, and a physician
      satisfactory to both the Director and the Association must certify that
      the Director is disabled from performing his or her normal duties with the
      Association thereafter.

1.8   "EFFECTIVE DATE" means June 1, 1999

1.9   "PARTICIPANT" means a Director serving on or after the Effective Date and
      electing to participate in the Plan. A Director's participation in the
      Plan shall continue as long as he or she fulfills all the requirements for
      participation subject to the right of termination, amendment, and
      modifications of the Plan set forth herein.

1.10  "PLAN" means the Flatbush Federal Savings & Loan Association of Brooklyn
      Director Retirement Plan as set forth herein, and as may be amended from
      time to time by the Board.

1.11  "RETIREMENT BENEFIT AMOUNT" means the benefit payable under the Plan in
      accordance Section 2.4 herein.

1.12  "RETIREMENT DATE" means the date of termination of service as a Director
      following a Participant's completion of not less than five (5) years of
      service as a Director and attainment of not less than age 65 while serving
      as a Director. Upon death or Disability, a Director shall be deemed to
      have terminated service as of such date.

1.13  "ASSOCIATION" means Flatbush Federal Savings & Loan Association of
      Brooklyn, or any successor thereto.

1.14  "SERVICE" means all years of service as a Director of the Association and
      all predecessor (or successor) entities of the Association, Years if
      service as a Director need not be continuous.

                                   ARTICLE II

                                    BENEFITS

2.1   RETIREMENT. Upon a Participant's termination from service as a Director on
      or after his or her Retirement Date whereby such Participant has completed
      not less than five (5) years of service and attained the minimum age of at
      least sixty-five (65), the Association

                                       2
<PAGE>

      shall pay to the Participant the Retirement Benefit Amount, as described
      and in the amount set forth at Article II, Section 2.4. Payment of such
      Retirement Benefit Amount shall begin on the first business day of the
      month immediately following a Participant's Retirement Date. The payments
      will continue to be paid on the first business day of each subsequent
      month until all scheduled payments are made to the Participant or the
      surviving spouse. Except as provided at Article II, Sections 2.2, 2.3 and
      2.5 herein, upon a Participant's termination from service as a Director of
      the Association prior to his or her Retirement Date, the Association shall
      have no financial obligations to the Participant under the Plan.

2.2   CHANGE OF CONTROL.

      Benefits payable to a Participant that has terminated from service as a
      Director prior to the date of a Change in Control of Association shall
      nevertheless remain payable thereafter without regard to such Change in
      Control.

2.3   TOTAL AND PERMANENT DISABILITY. In the event of the Disability of a
      Participant on or after the Retirement Date, such Participant will be paid
      the Retirement Benefit Amount specified at Article II, Section 2.4 based
      upon the presumption that such Participant shall have attained at least
      age 65. For purposes of benefits accrual, such Participant's years of
      service shall be determined based upon the date of certification of his or
      her Disability; provided that no benefits shall be payable hereunder if
      such Participant shall have completed less than five years of service as
      of the date of Disability. Payment of such benefits shall begin on the
      first business day of the month immediately following the Association's
      receipt of a certification of such Participant's Disability.

2.4   LEVEL OF BENEFIT PAYMENTS. A monthly retirement benefit for a period of a
      maximum of 60 months of $600.00 per month.

      YEARS OF SERVICE AS OF THE RETIREMENT DATE  % OF RETIREMENT BENEFIT AMOUNT
      ------------------------------------------  ------------------------------
                    Less than 5 years                             0%
                    5 or more                                   100%

2.5   DEATH OF PARTICIPANT. Upon the death of a Participant who is receiving
      benefit payments under the Plan prior to his or her death the remaining
      payments to be made under the Plan (if any) shall be paid to the surviving
      spouse, during such Spouse's lifetime after the Participant's death. Upon
      the death of a Participant who is not receiving benefit payments under the
      Plan prior to his or her death who as of the date of death otherwise meets
      the requirements of the Plan, the Association shall pay to the surviving
      spouse the retirement Benefit Amount set forth at Article II, Section 2.4,
      during such surviving spouse's lifetime. If a surviving spouse dies prior
      to receiving all payments of the Retirement Benefit Amount, then the
      remaining monthly payments will cease immediately and all obligations of
      the Association under the Plan shall cease to exist.

2.6   NOTICE OF RETIREMENT. A director electing to participate in the Plan shall
      deliver written notice ("Notice") to the Board not less than thirty (30)
      days prior to the

                                       3
<PAGE>

      actual Retirement Date that such Director elects to participate in the
      Plan. Such Notice, in a form similar to that contained at Schedule A
      hereto, shall specify the date of such retirement from the Board as a
      Director. A Participant who terminates service as a Director upon death,
      disability, or a Change in Control shall not be required to deliver such
      Notice in order to be entitled to receive benefits under the Plan.

                                   ARTICLE III

                         TRUST/NON-FUNDED STATUS OF PLAN

3.1   TRUST/NON-FUNDED STATUS OF PLAN. Except as may be specifically provided,
      nothing contained in this Plan and no action taken pursuant to the
      provisions of this Plan shall create or be construed to create a trust of
      any kind, or a fiduciary relationship between the Association and the
      Participant or any other person. Any funds which may be invested under the
      provisions of this Plan shall continue for all purposes to be a part of
      the general funds of the Association. No person other than the Association
      shall by virtue of the provisions of Plan have any interest in such funds.
      The Association shall not under any obligation to use such funds solely to
      provide benefits hereunder, and no representations have been made to any
      Participant that such funds can or will be used only to provide benefits
      hereunder. To the extent that any person acquires a right to receive
      payments from the Association under the Plan, such rights shall be no
      greater than the right of any unsecured general creditor of the
      Association.

                                   ARTICLE IV

                                     VESTING

4.1   VESTING. All benefits under this Plan are deemed non-vested and
      forfeitable prior to a Participant meeting the requirements set forth at
      section 2.1, 2.2, 2.3 and 2.5 herein. All benefits payable hereunder shall
      be deemed 100% vested and non-forfeitable by the Participant upon his or
      her meeting the requirements set forth at Section 2.1, 2.2, 2.3 or 2.5
      herein. No benefits shall be deemed payable hereunder for any period prior
      to the time that such benefits shall be deemed 100% vested and
      non-forfeitable.

                                    ARTICLE V

                                   TERMINATION

5.1   TERMINATION. All the rights of a Participant shall terminate immediately
      upon the participant ceasing to be in the active service of the
      Association prior to the time that benefits payable under the Plan shall
      be deemed to be 100% vested and non-forfeitable in accordance with Article
      V. A leave of absence approved by the Board shall not constitute a
      cessation of service within the meaning of this Section 5.1.

                                       4
<PAGE>

                                   ARTICLE VI

                               GENERAL PROVISIONS

6.1   OTHER BENEFITS. Nothing in this Plan shall diminish or impair a
      Participant's eligibility, participation or benefit entitlement under any
      other benefit, insurance or compensation plan or agreement of the
      Association now or hereinafter in effect.

6.2   NO EFFECT ON EMPLOYMENT OR SERVICE. This Plan shall not be deemed to give
      any Participant or other person in the employ or service of the
      Association any right to be retained in the employment or service of the
      Association, or to interfere with the right of the Association to
      terminate any Participant or such other person at any time and to treat
      him or her without regard to the effect which such treatment might have
      upon him or her as a Participant in this Plan.

6.3   LEGALLY BINDING. The rights, privileges, benefits and obligation under
      this Plan are intended to be legal obligations of the Association and
      binding upon the Association, its successors and assigns.

6.4   MODIFICATION. The Association, by action of the Board of Directors,
      reserves the exclusive right to amend, modify, or terminate this Plan. Any
      such termination, modification or amendment shall not terminate or
      diminish any rights or benefits accrued by any Participant prior thereto
      without regard to whether such rights or benefits shall be deemed vested
      as of such date. The Association shall give thirty (30) days notice in
      writing to any Participant prior to the effective date of any amendment,
      modification or termination of this Plan.

6.5   ARBITRATION. Any controversy or claim arising out of or relating to the
      Plan or the breach thereof shall be settled by arbitration in accordance
      with the Commercial Arbitration Rules of the American Arbitration
      Association, with such arbitration hearing to be held at the offices of
      the American Arbitration Association ("AAA") nearest to the home office of
      the Association, unless otherwise mutually agreed to by the Participant
      and the Association, and judgment upon the award rendered by the
      arbitrator(s) may be entered in any court having jurisdiction thereof.

6.6   LIMITATION. No rights of any Participant are assignable by any Participant
      or Beneficiary, in whole or in part, either by voluntary or involuntary
      act or by operation of law. The rights of a Participant or Beneficiary
      hereunder are not subject to anticipation, alienation, sale, transfer,
      assignment, pledge, hypothecation, encumbrance or garnishment by creditors
      of the Participant or Beneficiary. Further, a Participant's rights under
      the Plan are not subject to the debts, contracts, liabilities,
      engagements, or torts or any Participant. No Participant or Beneficiary
      shall have any right under this Plan or right against any assets held or
      acquired pursuant thereto other than the rights of a general, unsecured
      creditor of the Association pursuant to the unsecured promise of the
      Association to pay the benefits accrued hereunder in accordance with the
      terms of this Plan. The Association has no obligation under this Plan to
      fund or otherwise secure its obligations to render payments hereunder to a
      Participant or Beneficiary. No Participant

                                       5
<PAGE>

      or Beneficiary shall have any discretion in the use, disposition, or
      investment of any asset acquired or set aside by the Association to
      provide benefits under this Plan.

6.7   ERISA AND IRC DISCLAIMER. It is intended that the plan be neither an
      "employee welfare benefit plan" nor an "employee pension benefit plan" for
      purposes of the Employee Retirement Income Security Act of 1974, as
      amended ("ERISA"). Further, it is intended that the Plan will not cause
      the interest of a Participant under the Plan to be includable in the gross
      income of such Participant prior to the actual receipt of a payment under
      the Plan for purposes of the Internal Revenue Code of 1986, as amended
      ("IRC").

6.8   REGULATORY MATTERS.

      (a)  The Participant of Beneficiary shall have no right to receive
compensation or other benefits in accordance with the Plan for any period after
termination of service for Just Cause. Termination for "Just Cause" shall
include termination because of the Participant's personal dishonesty,
incompetence, willful misconduct, breach of fiduciary duty involving personal
profit, intentional failure to perform stated duties, willful violation of any
law, rule or regulation (other than traffic violations or similar offenses) or
final cease-and-desist order, or material breach of any provision of the Plan.

      (b)  Notwithstanding anything herein to the contrary, any payments made to
a Participant or Beneficiary pursuant to the Plan shall be subject to and
conditioned upon compliance with 12 U.S.C. 1828(k) and any regulations
promulgated thereunder.

6.9   INCOMPETENCY. If the Association shall find any person to whom any payment
      is payable under the Plan is deemed unable to care for his or her personal
      affairs because of illness or accident, any payment due (unless a prior
      claim therefore shall have been made by a duly appointed guardian,
      committee or other legal representative) may be paid to the spouse, a
      child, a parent, or a brother or sister, or to any person deemed by the
      Association to have incurred expense for such person otherwise entitled to
      payment, in such manner and proportions as the Board may determine in its
      sole discretion. Any such payments shall constitute a complete discharge
      of the liabilities of the Association under the Plan.

6.10  CONSTRUCTION. The Committee shall have full power and authority to
      interpret, construe and administer this Plan and the Committee's
      interpretations and construction thereof, and actions thereunder shall be
      binding and conclusive on all persons for all purposes. Directors of the
      Association shall not be liable to any person for any action taken or
      omitted in connection with the interpretation and administration of this
      Plan unless attributable to his or her own willful, gross misconduct or
      lack of good faith.

6.11  PLAN ADMINISTRATION. The Board shall administer the Plan; provided,
      however, that the Board may appoint an administrative committee (i.e., the
      Committee) to provide administrative services or perform duties required
      by this Plan. The Committee shall have only the authority granted to it by
      the Board.

                                       6
<PAGE>

6.12  GOVERNING LAW. This Plan shall be construed in accordance with and
      governed by the laws of the State of New York ("State"), except to the
      extent that federal law shall be deemed to apply.

6.13  SUCCESSORS AND ASSIGNS. The Plan shall be binding upon any successor or
      successors of the Association, and unless clearly inapplicable, reference
      herein to the Association shall be deemed to include any successor or
      successors of the Association.

6.14  SOLE AGREEMENT. The Plan expresses, embodies, and supersedes all previous
      agreements, understandings, and commitments, whether written or oral,
      between the Association and any Participants hereto with respect to the
      subject matter hereof.

IN WITNESS WHEREOF, the Association has caused the Plan to be executed by its
duly authorized officers.

                                       THE ASSOCIATION

May 27, 1999                           /s/ Anthony J. Monteverdi
-------------------------              -----------------------------------------
DATE                                   By: ANTHONY J. MONTEVERDI as Chairman

May 27, 1999                           /s/ Harold G. McKinley
-------------------------              -----------------------------------------
DATE                                   By: HAROLD G. MCKINLEY as Vice-Chairman

Robert Carrano, Secretary of the Flatbush Federal Savings and Loan Association
of Brooklyn ("Flatbush") does hereby certify that the Directors Retirement Plan
("Plan") was approved by Resolution of the Board of Directors of Flatbush on May
27, 1999 and the "Plan" agreement was evidenced by the signatures of the
Association's Chairman and Vice-Chairman .

May 27, 1999                           /s/ Robert Carrano
-------------------------              -----------------------------------------
DATE                                   By: ROBERT CARRANO as Secretary

                                       7

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