Document:

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EXHIBIT 10.26

                  EMPLOYMENT TERMINATION AND RELEASE AGREEMENT

               This EMPLOYMENT  TERMINATION AND RELEASE  AGREEMENT  (hereinafter
referred to as the  "Agreement")  is made and entered  into by and among JOHN J.
CONEFRY, JR. (referred to below as "You" or "Your"), ASTORIA FEDERAL SAVINGS AND
LOAN  ASSOCIATION  (referred to below as the  "Company")  and ASTORIA  FINANCIAL
CORPORATION (referred to below as the "Holding Company").

                              PRELIMINARY STATEMENT

               Your  employment  with the Holding  Company and/or the Company is
being terminated. The Holding Company is prepared to pay You severance benefits,
but  will do so only if You give up Your  rights  to  bring  or  participate  in
certain  types of lawsuits.  By signing this  Agreement,  You will give up those
rights, and the Holding Company will agree to pay You severance  benefits.  This
Agreement was given to You on November 21, 2000.  This  Agreement  will be of no
force or effect  unless it is  properly  signed and  returned  to the Company no
later than December 29, 2000.

YOU SHOULD THOROUGHLY REVIEW AND UNDERSTAND THE TERMS,  CONDITIONS AND EFFECT OF
THIS AGREEMENT. THEREFORE, YOU HAVE A MINIMUM OF TWENTY-ONE (21) DAYS AFTER THIS
AGREEMENT  IS GIVEN TO YOU TO CONSIDER IT BEFORE  SIGNING IT. YOU ARE ADVISED TO
CONSULT WITH AN ATTORNEY BEFORE YOU SIGN.

                                    AGREEMENT

               1. You shall resign from your  position as an operating  officer,
as well as from any and all other positions that You hold in Your capacity as an
employee  of the  Holding  Company,  the  Company  and their  direct or indirect
subsidiaries and affiliates,  effective at the close of business on December 29,
2000 (the  "Termination  Date").  Your resignation  shall have no effect on Your
status as a  non-employee  Vice  Chairman  and  director  of the  Company or the
Holding  Company  and  shall  result in the  commencement,  on the day after the
Termination  Date,  of the  Consulting  Period  under  the  Litigation  Advisory
Committee  Consulting  Agreement  between You and the Holding  Company  made and
entered into as of April 2, 1998 (the "Litigation Committee Agreement").

               2. Your  compensation  and fringe  benefits as an  employee  will
continue  through  the  Termination  Date in  accordance  with  Your  Employment
Agreement  dated April 2, 1998 by and between You and the Holding  Company.  You
acknowledge that, because Your Termination Date is prior to January 1, 2001, You
will  not be  eligible  for a bonus  under  the  Astoria  Financial  Corporation
Executive  Officer Annual Incentive Plan for the fiscal year ending December 31,
2000. In recognition of this fact, the Company will pay You on or before January
26, 2001 (or, if later,  the date on which this Agreement  becomes  irrevocable)
such sum as would have been due and payable

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to you pursuant to the Astoria  Financial  Corporation  Executive Officer Annual
Incentive Plan had Your employment not terminated  until after December 31, 2000
based  upon the  terms  and  conditions  of the  Astoria  Financial  Corporation
Executive  Officer  Annual  Incentive  Plan  consistently  applied to all of the
Astoria  Financial   Corporation   Executive  Officer  Annual  Incentive  Plan's
participants  for the 2000 Plan year.  In addition,  the Company will provide to
you a continuation of Your life, health and medical insurance coverages upon the
same  terms  and  conditions  that  would  apply  to you as an  active  employee
(including,  but not limited to, premium sharing  arrangements,  deductibles and
co-payments)  for a period of 3 years  beginning  on the  Termination  Date (the
"Continued  Benefits").  Any  period  for  which  You may be  entitled  to elect
"continuation  coverage" under any applicable federal,  state or local law shall
not commence  running  until the  expiration  of the period for which  Continued
Benefits are provided hereunder.  You acknowledge that, because Your Termination
Date is prior to December  31,  2000,  You will not be  eligible  for a year end
allocation under the Astoria Federal Savings and Loan Association Employee Stock
Ownership  Plan (the "ESOP") for the fiscal year ending  December  31, 2000.  In
recognition  of this  fact,  the  Company  will  pay You as soon as  practicable
following the determination of what such allocation would have been had You been
employed by the Company  through  December  31, 2000 (or, if later,  the date on
which this Agreement  becomes  irrevocable)  such sum in cash as would have been
due and payable to you pursuant to the ESOP had Your  employment  not terminated
until after  December 31, 2000 based upon the terms and  conditions  of the ESOP
consistently  applied to all of the ESOP's  participants for the 2000 Plan year.
Such payments shall be subject to deductions for applicable  federal,  state and
local withholding taxes.

               3. The Company will  provide You with all of the  post-employment
benefits for which You are eligible under the Company's  post-employment benefit
plans,  in  accordance  with the plans'  prevailing  terms and  conditions.  You
acknowledge  that such  benefits do not  include  benefits  under any  severance
benefits or plans, however denominated, maintained by the Company or the Holding
Company. In addition, the Company will pay You $5,426,127.08 on January 12, 2001
(or,  if  later,  the  date  on  which  the  Agreement   becomes   irrevocable),
representing  the aggregate  amount  potentially due to You pursuant to sections
9(b)(iv),  (v), (vi) and (vii) of the Employment  Agreement  between You and the
Holding  Company  dated  April 2, 1998 (the  "Employment  Agreement").  All such
compensation and benefits shall be subject to deductions for applicable federal,
state and  local  withholding  taxes.  You will be  deemed  fully  vested in all
restricted stock awards and unexercised  stock options  outstanding to You as of
December 29, 2000 under any stock option or  restricted  stock plan,  program or
arrangement of the Company or the Holding  Company.  For purposes of determining
any  post-termination  exercise period for Your outstanding  stock options,  the
Termination Date shall be considered the date of termination of Your employment,
notwithstanding Your continued performance of service as a non-employee director
or pursuant to the Litigation Advisor Committee Consulting Agreement.  In making
these payments,  neither the Company nor the Holding Company concedes that it is
contractually liable for them under the Employment Agreement.

               4. You hereby  agree that You, on behalf of Yourself  and also on
behalf of any other  person or persons  claiming  or  deriving a right from You,
unconditionally and irrevocably  forever release and discharge the Company,  the
Holding Company and their respective shareholders,

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agents,   servants,   employees,    directors,   officers,   affiliates   and/or
subsidiaries,  and any  shareholders,  agents,  servants,  employees,  directors
and/or officers of all such affiliates and/or  subsidiaries and their respective
heirs,  successors  and  assigns  ("the  Releasees")  from any and all  charges,
complaints,    claims,   liabilities,    obligations,    promises,   agreements,
controversies,  actions,  demands, debts, costs, expenses,  damages, injuries or
causes of action ("Claims") which You now have, or ever have had, arising out of
Your  employment by, or termination of employment by, the Holding Company and/or
the  Company,  up to and  including  the date on which You sign this  Agreement,
whether arising in equity or pursuant to any law, rule or regulation,  including
any Claims of which You are not aware or do not  suspect to exist as of the date
on which  You sign this  Agreement,  and  specifically  including  claims  under
section 9 of the Employment Agreement; provided, however, that nothing contained
herein shall be deemed a release or waiver of Your rights  pursuant to Section 6
of Your  Employment  Agreement  dated  April 2, 1998 by and  between You and the
Holding Company.

               5.  The  release  contained  in  Paragraph  4 of  this  Agreement
includes,  but is not  limited to, any Claims that You (or any person or persons
claiming or deriving a right from You) may have based on  discrimination  due to
age, race, sex, religion or national origin, or any other claims pursuant to the
Worker  Adjustment and Retraining  Notification  Act, the Age  Discrimination in
Employment Act of 1967, as amended,  the National Labor Relations Act, Title VII
of the Civil Rights Act of 1964,  the Civil  Rights Act of 1866,  the Family and
Medical  Leave  Act,  the   Rehabilitation  Act  of  1973,  the  Americans  with
Disabilities  Act, the Equal Pay Act, the Fair Labor Standards Act, the Employee
Retirement Income Security Act of 1974, as amended, the Internal Revenue Code of
1986,  as amended,  Executive  Orders Nos.  11246 and 11141,  the New York Human
Rights Law,  the New York Equal Pay Law,  the New York Equal Rights Law, and any
other  federal,  state  or  local  statute,  rule,   constitutional   provision,
regulation,  ordinance or common law,  including,  but not limited to, those for
wrongful  discharge,  fraud,  intentional  or negligent  infliction of emotional
distress and breach of any expressed or implied  covenant of good faith and fair
dealing, and including but not limited to, any Claims for recovery of attorney's
fees. YOU UNDERSTAND THAT BY SIGNING THIS RELEASE,  YOU ARE GIVING UP ALL RIGHTS
THAT YOU HAVE UNDER THESE AND OTHER LAWS.

               6.   You acknowledge that:

               (a)  the payments and benefits  provided in Paragraphs 2 and 3 of
                    this Agreement ("Additional  Benefits") are in consideration
                    for the release contained herein and are in addition to what
                    You are otherwise entitled to receive from the Company;

               (b)  You have been advised to consult an attorney  before signing
                    this Agreement and have been afforded the  opportunity to do
                    so;

               (c)  You have had the  opportunity to consider this Agreement for
                    at least 21 days;

               (d)  You have read this Agreement in its entirety, understand its
                    terms,  and knowingly and  voluntarily  consent to its terms
                    and conditions;

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               (e)  the  releases  made  by You in  Paragraphs  4 and 5 of  this
        Agreement are made knowingly and  voluntarily,  and without  coercion by
        the Company, the Holding Company or any of the Releasees; and

               (f) the  filing  of a Claim  against  the  Company,  the  Holding
        Company  or any of the  Releasees  by You  (or  any  person  or  persons
        claiming  or  deriving a right from You)  shall be a  violation  of this
        Agreement  resulting  in Your  obligation  to repay to the  Company  the
        Additional  Benefits You have received in  consideration of the releases
        made by You in Paragraphs 4 and 5 of this  Agreement  and  forfeiture of
        Your rights to any future Additional Benefits,  in addition to any costs
        or liabilities  that may be imposed on You by a court for a violation of
        this Agreement.

               7. The  Holding  Company  and the  Company  agree  that upon Your
execution of this  Agreement,  the Holding  Company shall cause to be released a
press  release  which  shall  contain a  statement  as the  termination  of Your
employment  from the Holding  Company and the reason(s) for such  termination as
set forth in Exhibit A to this  Agreement.  Neither the  Holding  Company or the
Company will make any other  disclosures  concerning  Your  employment  or other
information regarding You except for confirming employment,  job title, dates of
service and rate of pay, plus  additional  information as, and only as, required
pursuant to subpoena or otherwise  required by law. You agree  hereafter  not to
disclose  or make  reference  to the  terms  of this  Agreement  except  to Your
attorney  and Your  immediate  family or as  required  by law  without the prior
written consent of the Company.  You further understand and agree that You shall
not hereafter  contact or  communicate  with  employees of the Company or former
employees of the Company regarding the subject matter of this Agreement and will
not join in,  facilitate or otherwise  participate in any action,  proceeding or
investigation  against the Company.  To the extent provided by law, You will not
be prohibited from filing claims,  or  participating  in claims filed by others,
with the Equal Employment Opportunity Commission.

               8. Neither Your  termination  of employment  nor the execution of
this Agreement  shall affect our  respective  rights and  obligations  under the
Litigation  Committee  Agreement  or sections 6, 13, 14 or 15 of the  Employment
Agreement,  all of which shall  continue in effect.  For purposes of determining
the period during which sections 6, 13 and 15 of the Employment  Agreement shall
apply, the Termination Date shall be deemed to be the last day of the Employment
Period and the date of termination of your employment.

               9. This Agreement  constitutes the entire understanding between
the parties, and supersedes any and all prior understandings and agreements
between the parties.

               10.The parties  acknowledge that no  representations,  promises,
consideration  or  inducements  have been made by the  Company  or by any of the
Releasees to You other than what is contained in this Agreement.

               11.This Agreement may not be modified except by a writing
 signed by all parties.

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               12.The  parties   acknowledge  that  this  Agreement  does  not
constitute or imply any admission of liability by the Company,  or by any of the
Releasees,  to You or to anyone  deriving or claiming a right  through You or on
Your behalf.

               13.If any provision in this  Agreement is declared or determined
by  any  court  to  be  illegal,  void,  or  unenforceable,  the  illegality  or
unenforceability  of such  provision  shall have no effect  upon,  and shall not
impair,  the  enforceability  or  validity  of  any  other  provisions  in  this
Agreement.

               14.You agree and understand  that any action by You in violation
of this  Agreement  shall void the Company's  payments to You of all  Additional
Benefits  provided for herein and shall require Your immediate  repayment of the
value of all  consideration  paid to You pursuant to this  Agreement,  and shall
further require You to pay all reasonable costs and attorneys' fees in defending
any  action  You  bring  plus any other  damages  to which  the  Company  may be
entitled.  You further consent to the issuance of a temporary  restraining order
and/or  injunction as an appropriate  remedy for violation of this Agreement and
will not contest the entry of same if a violation is shown.

               15.This Agreement may be executed in any number of counterparts,
each of which  shall be  deemed  an  original  and all of which  together  shall
constitute one and the same instrument.

               16.The parties  acknowledge that this Agreement will only become
effective  and  irrevocable  on the eighth day following the day it is signed by
You and  delivered  by You to the Company and only if it is  delivered by You to
the Company no later than  December 29, 2000.  You may revoke this  Agreement at
any time prior to its effective  date by giving  written notice of revocation to
the Company by  registered  or certified  mailed  addressed as follows:  Astoria
Federal Savings and Loan  Association,  One Astoria Federal Plaza, Lake Success,
New York 11042-1085,  Attention:  General  Counsel.  No payments will be made or
benefits provided until this Agreement has become irrevocable.

               IN  WITNESS  WHEREOF,  the  parties  hereto  have  executed  this
Agreement on the day and year first herein written.

                                                ASTORIA FEDERAL SAVINGS AND LOAN
                                                ASSOCIATION

/s/ John J. Conefry, Jr.                 By:/s/ George L. Engelke, Jr.
----------------------------                --------------------------
Employee Signature                          Name:George L. Engelke, Jr.
                                            Title: Chairman, President and
                                                   Chief Executive Officer

November 21, 2000                           November 21, 2000
----------------------------------          -----------------------------------
Date of Signature                           Date of Delivery of Signed Agreement

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ASTORIA FINANCIAL CORPORATION

By:    /s/ George L. Engelke, Jr.
       ------------------------------
       Name:   George L. Engelke, Jr.
       Title:  Chairman, President and
               Chief Executive Officer

Exhibit A

                                                Contact:    Peter J. Cunningham
                                                            First Vice President
                                                            Investor Relations
                                                            516-327-7877

FOR IMMEDIATE RELEASE

     JOHN J. CONEFRY, JR., VICE CHAIRMAN, TO RESIGN AS AN OPERATING OFFICER
                        OF ASTORIA FINANCIAL CORPORATION

Lake Success,  New York,  November 22, 2000 -- George L. Engelke,  Jr. Chairman,
President and Chief Executive Officer of Astoria Financial  Corporation (Nasdaq:
ASFC), announced today that Astoria Financial Corporation has agreed,  effective
December 29, 2000, to accept the resignation of John J. ("Jay") Conefry,  Jr. as
an operating  officer of Astoria Financial  Corporation.  No replacement will be
named for Mr.  Conefry,  who will  continue  to serve as a Vice  Chairman of the
Board of Directors of Astoria Financial  Corporation and Astoria Federal Savings
and  Loan  Association.   Mr.  Engelke  commented,  "We  are  grateful  for  the
significant  contribution  Jay  Conefry  made to Astoria in  assisting  with the
seamless  integration of The Long Island Savings Bank, FSB into Astoria  Federal
Savings and Loan  Association  following its  acquisition  by Astoria  Financial
Corporation.  We are also  very  pleased  that Jay will  continue  to serve as a
director." In accordance with his employment contract,  Mr. Conefry will receive
a severance  payment  which will result in an after-tax  charge to operations in
the fourth quarter ending December 31, 2000 of  approximately  $3.5 million,  or
$0.07 per diluted common share.

       Astoria  Financial  Corporation,  the holding company for Astoria Federal
Savings and Loan Association with assets of $22.2 billion, is the second largest
thrift  institution in New York and sixth largest in the United States.  Astoria
Federal,  through its 87 banking  offices,  provides retail  banking,  mortgage,
consumer and small business loan services to 700,000 customers. Astoria commands
the third largest  deposit  market share in the  attractive  Long Island market,
which includes Brooklyn,  Queens,  Nassau and Suffolk counties with a population
exceeding  that of 39  individual  states.  Astoria  originates  mortgage  loans
through an extensive  broker network and/or loan production  offices in fourteen
states: New York, New Jersey,  Connecticut,  Pennsylvania,  Ohio, Massachusetts,
Delaware,  Maryland, Illinois, Virginia, North Carolina, South Carolina, Georgia
and Florida.

                                      # # #

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EXHIBIT 10.43

                      CHANGE OF CONTROL SEVERANCE AGREEMENT

         This CHANGE OF CONTROL  SEVERANCE  AGREEMENT (the  "Agreement") is made
and entered into as of December 20, 2000 by and among  ASTORIA  FEDERAL  SAVINGS
AND LOAN  ASSOCIATION,  a savings and loan  association  organized  and existing
under the laws of the  United  States  of  America  and  having an office at One
Astoria  Federal  Plaza,  Lake  Success,  New York 11042 (the  "Bank"),  ASTORIA
FINANCIAL  CORPORATION,  a business corporation organized and existing under the
laws of the State of Delaware and having an office at One Astoria Federal Plaza,
Lake  Success,  New York  11042 (the  "Company")  and  Harold R.  Leistmann,  an
individual  residing  at 29  Shenandoah  Boulevard,  Coram,  New York 11727 (the
"Officer").

                             INTRODUCTORY STATEMENT

                  WHEREAS,  the Boards of  Directors of the Bank and the Company
have approved the Bank and the Company entering into Change of Control Severance
Agreements with certain key officers of the Bank,

         WHEREAS, the Officer is a key officer of the Bank;

         WHEREAS,  should  the  possibility  of a Pending  Change of  Control or
Change of Control of the Bank or the Company  arise,  the Boards of Directors of
the Bank and the Company believe it is imperative that the Bank, the Company and
the Boards of Directors of the Bank and the Company  should be able to rely upon
the  Officer  to  continue  in his or her  position,  and  that the Bank and the
Company  should  be able to  receive  and rely  upon the  Officer's  advice,  if
requested,  as to the  best  interests  of the Bank and the  Company  and  their
respective  shareholders without concern that the Officer might be distracted by
the personal  uncertainties  and risks created by the  possibility  of a Pending
Change of Control or Change of Control;

         WHEREAS,  should  the  possibility  of a Pending  Change of  Control or
Change of Control arise, in addition to his or her regular  duties,  the Officer
may be called upon to assist in the  assessment of such possible  Pending Change
of Control or Change of Control,  advise  management and the Board as to whether
such  Pending  Change  of  Control  or Change  of  Control  would be in the best
interests of the Bank,  the Company and their  respective  shareholders,  and to
take such other  actions as the Boards of  Directors of the Bank and the Company
might determine to be appropriate; and

         NOW, THEREFORE,  to assure the Bank and the Company that they will have
the  continued  dedication  of the  Officer and the  availability  of his or her
advice and counsel  notwithstanding the possibility,  threat, or occurrence of a
Pending  Change of Control or Change of Control of the Bank or the Company,  and
to induce the Officer to remain in the employ of the Bank, in  consideration  of
the  mutual  premises  and  agreements  set forth  herein and for other good and
valuable consideration, the Bank, the Company and the Officer agree as follows:

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                                    AGREEMENT

         Section 1.  Effective Date; Term; Pending Change of Control and Change
                     of Control Defined.

         (a)      This  Agreement  shall take effect on  December  20, 2000 (the
                  "Effective Date") and shall remain in effect during the period
                  (the "Term") beginning on the Effective Date and ending on the
                  earlier of :

                  (i)      the date, prior to the occurrence of a Pending Change
                           of Control or a Change of Control,  as defined below,
                           respectively,  on which the  Officer's  employment by
                           the   Bank    terminates    whether   by   discharge,
                           resignation, death, disability or retirement, or

                  (ii)     the later of:

                           (A)      the first  anniversary  of the date on which
                                    the  Bank  notifies  the  Executive  of  its
                                    intent to  discontinue  the  Agreement  (the
                                    "Initial Expiration Date") or,

                           (B)      the second  anniversary of the latest Change
                                    of Control,  as defined  below,  that occurs
                                    after  the  Effective  Date and  before  the
                                    Initial Expiration Date, or

         (b)      For purposes of this Agreement, a "Change of Control" shall be
                  deemed  to have  occurred  upon  the  happening  of any of the
                  following events:

                  (i)      the  consummation  of  a  reorganization,  merger  or
                           consolidation  of the Company  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 Securities Exchange Act of 1934, as
                                    amended ("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 Company; and

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                           (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 Company;

                  (ii)     the  acquisition of all or  substantially  all of the
                           assets of the Company 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 Company  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 Company;

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

                           (A)      individuals who were members of the Board of
                                    Directors of the Company on the Effective
                                    Date of this Agreement; or

                           (B)      individuals  who first became members of the
                                    Board of Directors of the Company  after the
                                    Effective Date of this Agreement either:

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

                                    (2)     upon election by the shareholders of
                                            the  Board  of   Directors   of  the
                                            Company to serve as a member of such
                                            Board,  but  only if  nominated  for
                                            election  by  affirmative   vote  of
                                            three-quarters of the members of the
                                            Board of  Directors  of the Company,
                                            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

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                                    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 Directors of the Company; or

                  (v)      any  event  which  would  be   described  in  section
                           1(b)(i),  (ii), (iii) or (iv) if the term "Bank" were
                           substituted for the term "Company" therein.

                  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 Company,  the Bank, or a subsidiary of either of
                  them, by the Company, the Bank, or any subsidiary of either of
                  them,  or by any employee  benefit plan  maintained  by any of
                  them.  For purposes of this section  1(b),  the term  "person"
                  shall have the meaning assigned to it under sections  13(d)(3)
                  or 14(d)(2) of the Exchange Act.

         (c)      For purposes of this Agreement, a "Pending Change of Control"
                  shall mean:

                  (i)      the approval by the shareholders of the Bank or the
                           Company of a definitive agreement for a transaction
                           which, if consummated, would result in a Change of
                           Control; or

                  (ii)     the approval by the shareholders of the Bank or the
                           Company of a transaction which, if consummated, would
                           result in a Change of Control.

         Section 2.  Discharge Prior to a Pending Change of Control.

         The Bank may discharge the Officer at any time prior to the  occurrence
of a Pending Change of Control or, if no Pending Change of Control has occurred,
a Change of Control, for any reason or for no reason. In such event:

         (a)      The Bank shall pay to the Officer or the Officer's  estate his
                  or her  earned  but unpaid  compensation,  including,  without
                  limitation,  salary and all other items which constitute wages
                  under  applicable  law,  as  of  the  date  of  the  Officer's
                  termination of  employment.  This payment shall be made at the
                  time and in the manner  prescribed  by law  applicable  to the
                  payment of wages but in no event  later than 30 days after the
                  date of the Officer's termination of employment.

         (b)      The Bank  shall  provide  the  benefits  due,  if any,  to the
                  Officer  or the  Officer's  estate,  surviving  dependents  or
                  designated  beneficiaries,  as applicable,  under the employee
                  benefit plans and programs and compensation plans and programs
                  maintained  for the benefit of the officers  and  employees of
                  the Bank.  The time and manner of payment or other delivery of
                  these  benefits and the  recipients of such benefits  shall be
                  determined  according  to  the  terms  and  conditions  of the
                  applicable plans and programs.

                                    Page -4-
<PAGE>   5

The payments and benefits  described in sections  2(a) and (b) shall be referred
to in this Agreement as the "Standard Termination Entitlements."

         Section 3.   Termination of Employment Due to Death.

         The Officer's  employment with the Bank shall terminate  automatically,
and without any further  action on the part of any party to this  Agreement,  on
the date of the Officer's  death. In such event,  the Bank shall pay and deliver
to the Officer's estate and surviving  dependents and designated  beneficiaries,
as applicable, the Standard Termination Entitlements.

         Section 4.    Termination Due to Disability after a Pending Change of
                       Control or a Change of Control.

         The Bank may  terminate the  Officer's  employment  during the Term and
after the  occurrence of a Pending Change of Control or a Change of Control upon
a determination  by the Board of Directors of the Bank, by the affirmative  vote
of 75% of its entire  membership,  acting in reliance on the written advice of a
medical  professional  acceptable  to it, that the Officer is  suffering  from a
physical  or mental  impairment  which,  at the date of the  determination,  has
prevented  the  Officer  from  performing  the  Officer's  assigned  duties on a
substantially  full-time  basis for a period of at least one  hundred and eighty
(180)  days  during  the  period  of one (1)  year  ending  with the date of the
determination  or is  likely  to result in death or  prevent  the  Officer  from
performing the Officer's assigned duties on a substantially  full-time basis for
a period of at least one hundred and eighty  (180) days during the period of one
(1) year beginning with the date of the determination. In such event:

         (a)      The  Bank  shall  pay and  deliver  the  Standard  Termination
                  Entitlements  to the Officer or, in the event of the Officer's
                  death following such  termination  but before payment,  to the
                  Officer's   estate,   surviving   dependents   or   designated
                  beneficiaries, as applicable.

         (b)      In addition to the Standard Termination Entitlements, the Bank
                  shall continue to pay the Officer his or her base salary, at
                  the annual rate in effect for the Officer immediately prior to
                  the termination of the Officer's employment, during a period
                  ending on the earliest of: (i) the expiration of one hundred
                  and eighty (180) days after the date of termination of the
                  Officer's employment; (ii) the date on which long-term
                  disability insurance benefits are first payable to the Officer
                  under any long-term disability insurance plan covering
                  employees of the Bank; or (iii) the date of the Officer's
                  death.

A  termination  of employment  due to  disability  under this section 4 shall be
effected by a notice of  termination  given to the Officer by the Bank and shall
take effect on the later of the effective date of termination  specified in such
notice  or,  if no such  date is  specified,  the date on which  the  notice  of
termination is deemed given to the Officer.

                                    Page -5-
<PAGE>   6

         Section 5.   Discharge with Cause after a Pending Change of
                      Control or Change of Control.

         (a)      The Bank may terminate the Officer's  employment  with "Cause"
                  during the Term and after the  occurrence of a Pending  Change
                  of Control or a Change of Control,  but a termination shall be
                  deemed to have occurred with "Cause" only if:

                  (i)      (A)      the Board of Directors of the Bank, by the
                                    affirmative vote of 75% of its entire
                                    membership, determines that the Officer is
                                    guilty of personal dishonesty, incompetence,
                                    wilful misconduct, breach of fiduciary duty
                                    involving personal profit, intentional
                                    failure to perform stated duties, wilful
                                    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 measured against standards
                                    generally prevailing at the relevant time in
                                    the savings and community banking industry;

                           (B)      prior to the vote  contemplated  by  section
                                    5(a)(i)(A),  the Board of  Directors  of the
                                    Bank shall  provide the Officer  with notice
                                    of  the  Bank's   intent  to  discharge  the
                                    Officer    for   Cause,    detailing    with
                                    particularity  the facts  and  circumstances
                                    which are alleged to  constitute  Cause (the
                                    "Notice of Intent to Discharge"); and

                           (C)      after the  giving of the Notice of Intent to
                                    Discharge  and before the taking of the vote
                                    contemplated  by  section  5(a)(i)(A),   the
                                    Officer,  together with the Officer's  legal
                                    counsel,  if he so desires,  are  afforded a
                                    reasonable  opportunity to make both written
                                    and oral  presentations  before the Board of
                                    Directors  of the  Bank for the  purpose  of
                                    refuting  the alleged  grounds for Cause for
                                    the Officer's discharge; and

                           (D)      after the vote contemplated by section
                                    5(a)(i)(A), the Bank has furnished to the
                                    Officer a notice of termination which shall
                                    specify the effective date of the Officer's
                                    termination of employment (which shall in no
                                    event be earlier than the date on which such
                                    notice is deemed given) and include a copy
                                    of a resolution or resolutions adopted by
                                    the Board of Directors of the Bank,
                                    certified by its corporate secretary,
                                    authorizing the termination of the Officer's
                                    employment with Cause and stating with
                                    particularity the facts and circumstances
                                    found to constitute Cause for the Officer's
                                    discharge (the "Final Discharge Notice"); or

                  (ii)     the Officer, during the 90 day period commencing on
                           the delivery to the

                                    Page -6-
<PAGE>   7

                           Officer  by the  Bank  of the  Notice  of  Intent  to
                           Discharge  specified in section  5(a)(i)(B),  resigns
                           his or her  employment  with  the  Bank  prior to the
                           delivery  to the  Officer  by the  Bank of the  Final
                           Discharge Notice specified in section 5(a)(i)(D).

                  For  purposes of this  section 5, no act or failure to act, on
                  the part of the Officer,  shall be considered "willful" unless
                  it is done, or omitted to be done, by the Officer in bad faith
                  or without  reasonable  belief  that the  Officer's  action or
                  omission was in the best interests of the Bank or the Company,
                  respectively.  Any act or failure to act based upon  authority
                  given  pursuant to a  resolution  duly adopted by the Board of
                  Directors of the Bank or the Company or based upon the written
                  advice  of  counsel  for the  Bank  or the  Company  shall  be
                  conclusively  presumed to be done or omitted to be done by the
                  Officer in good faith and in the best interests of the Bank or
                  the Company, respectively.

         (b)      If the Officer is  discharged  with Cause  during the Term and
                  after a Pending Change of Control or a Change of Control,  the
                  Bank  shall  pay and  provide  to him or,  in the event of the
                  Officer's  death following such discharge but prior to payment
                  and providing,  to the Officer's estate,  surviving dependents
                  or  designated  beneficiaries,  as  applicable,  the  Standard
                  Termination Entitlements only.

         (c)      Following the giving of a Notice of Intent to Discharge, the
                  Bank  may  temporarily  suspend  the  Officer's  duties  and
                  authority  and, in such event,  may also suspend the payment
                  of salary and other cash compensation, but not the Officer's
                  participation  in  retirement,  insurance and other employee
                  benefit  plans.  If  the  Officer  is not  discharged  or is
                  discharged  without Cause within  forty-five (45) days after
                  the giving of a Notice of Intent to  Discharge,  payments of
                  salary and cash compensation  shall resume, and all payments
                  withheld  during the period of suspension  shall be promptly
                  restored.  If the Officer is discharged with Cause not later
                  than  forty-five (45) days after the giving of the Notice of
                  Intent to Discharge, all payments withheld during the period
                  of  suspension  shall be deemed  forfeited  and shall not be
                  included  in the  Standard  Termination  Entitlements.  If a
                  Final  Discharge  Notice is given later than forty-five (45)
                  days, but sooner than ninety (90) days,  after the giving of
                  the Notice of Intent to Discharge,  all payments made to the
                  Officer  during the period  beginning with the giving of the
                  Notice of Intent to Discharge  and ending with the Officer's
                  discharge  with Cause  shall be  retained by the Officer and
                  shall not be  applied  to offset  the  Standard  Termination
                  Entitlements.  If the Bank  does not give a Final  Discharge
                  Notice to the Officer within ninety (90) days after giving a
                  Notice  of  Intent  to  Discharge,  the  Notice of Intent to
                  Discharge shall be deemed withdrawn and any future action to
                  discharge the Officer with Cause shall require the giving of
                  a new Notice of Intent to Discharge.  If the Officer resigns
                  pursuant to Section 5(a)(ii),  the Officer shall forfeit his
                  or her  right  to  suspended  amounts  that  have  not  been
                  restored  as of the  date of the  Officer's  resignation  or
                  notice of resignation, whichever is

                                    Page -7-
<PAGE>   8

                  earlier.

         Section 6.   Discharge Without Cause after a Pending Change of Control
                      or Change of Control.

         The Bank may discharge the Officer  without Cause at any time after the
occurrence  of a Pending  Change of Control or a Change of Control,  and in such
event:

         (a)      The  Bank  shall  pay and  deliver  the  Standard  Termination
                  Entitlements  to the Officer or, in the event of the Officer's
                  death following the Officer's discharge but before payment, to
                  the  Officer's  estate,  surviving  dependents  or  designated
                  beneficiaries, as applicable.

         (b)      In addition to the Standard Termination Entitlements:

                  (i)    the  Bank  shall  provide  for a  period  of two  years
                         following  the  date of the  Officer's  discharge  (the
                         "Assurance  Period") for the benefit of the Officer and
                         the Officer's  spouse and  dependents  continued  group
                         life,  health (including  hospitalization,  medical and
                         major   medical),   dental,   accident  and   long-term
                         disability insurance benefits on substantially the same
                         terms and  conditions  (including any  co-payments  and
                         deductibles,   but   excluding   any  premium   sharing
                         arrangements,  it being the intention of the parties to
                         this  Agreement  that the premiums  for such  insurance
                         benefits  shall be the sole  cost  and  expense  of the
                         Bank)  in  effect  for  them  immediately  prior to the
                         Officer's  discharge.  The coverage provided under this
                         section  6(b)(i) may, at the  election of the Bank,  be
                         secondary  to the  coverage  provided  as  part  of the
                         Standard   Termination    Entitlements   and   to   any
                         employer-paid   coverage   provided  by  a   subsequent
                         employer  or through  Medicare,  with the  result  that
                         benefits  under the other  coverages  will  offset  the
                         coverage  required by this section  6(b)(i),  provided,
                         however,  that for  purposes  of this  section  6(b)(i)
                         benefits  provided  at the cost of the  Officer  or the
                         Officer's   spouse  or   dependants   pursuant  to  the
                         Comprehensive  Omnibus  Budget  Reconciliation  Act, as
                         amended,  shall not be considered Standard  Termination
                         Entitlements.

                  (ii)   The Bank shall make a lump sum  payment to the  Officer
                         or, in the event of the Officer's  death  following the
                         Officer's   discharge  but  before   payment,   to  the
                         Officer's  estate in an amount equal to the salary that
                         the  Officer  would  have  earned  if he had  continued
                         working for the Bank during the Assurance Period at the
                         highest  annual  rate of  salary  achieved  during  the
                         period of three (3) years ending  immediately  prior to
                         the  date  of   termination   (the  "Salary   Severance
                         Payment").   The  Salary  Severance  Payment  shall  be
                         computed using the following formula:

                                    Page -8-
<PAGE>   9

                         SSP      =    BS x NY

                         where:

                         "SSP" is the amount of the Salary Severance  Payment,
                         before the deduction of applicable federal, state and
                         local withholding taxes;

                         "BS" is the highest annual rate of salary achieved by
                         the  Officer  during  the  period  of three (3) years
                         ending  immediately prior to the date of termination;
                         and

                         "NY" is the Assurance Period expressed as a number of
                         years (rounded, if such period is not a whole number,
                         to the next highest whole number).

                         The Salary  Severance  Payment  shall be made  within
                         thirty (30) days after the Officer's  termination  of
                         employment  and  shall  be in lieu of any  claim to a
                         continuation  of base salary which the Officer  might
                         otherwise have and in lieu of cash severance benefits
                         under any severance  benefits program which may be in
                         effect for officers or employees of the Bank.

                  (iii)  The Bank shall make a lump sum  payment to the  Officer
                         or, in the event of the Officer's  death  following the
                         Officer's   discharge  but  before   payment,   to  the
                         Officer's  estate in an amount  equal to the  potential
                         annual  bonuses  that the Officer  would have earned if
                         the Officer had  continued  working for the Bank during
                         the  Assurance  Period at the  highest  annual  rate of
                         salary  achieved  during  the period of three (3) years
                         ending  immediately  prior to the  date of  termination
                         (the "Bonus  Severance  Payment").  The Bonus Severance
                         Payment shall be computed using the following formula:

                         BSP   =  ((BS x TIO x IP) + ( BS x TIO x FP x AP)) x NY

                         where:

                         "BSP" is the amount of the Bonus  Severance  Payment,
                         before the deduction of applicable federal, state and
                         local withholding taxes;

                         "BS" is the highest annual rate of salary achieved by
                         the  Officer  during  the  period  of three (3) years
                         ending immediately prior to the date of termination;

                         "TIO" is the  target  incentive  opportunity  for the
                         Officer  expressed as a percentage as  established by
                         the Compensation  Committee of the Board of Directors
                         of the Bank pursuant to the Bank's  Annual  Incentive
                         Plan for Select  Executives for the year in which the
                         employment of the Officer by the Bank

                                    Page -9-
<PAGE>   10

                           terminates or, if no target incentive  opportunity is
                           established  by  the  Compensation  Committee  of the
                           Board of  Directors  of the Bank for such  year  with
                           respect  to the  Officer,  then  the  highest  target
                           incentive opportunity established by the Compensation
                           Committee  of the Board of  Directors of the Bank for
                           the Officer pursuant to the Annual Incentive Plan for
                           Select  Executives  during  the  period  of three (3)
                           years  ending   immediately  prior  to  the  date  of
                           termination;

                           "IP" is either (i) the percentage of the TIO which is
                           to be determined by the individual performance of the
                           Officer as established by the Compensation  Committee
                           of the Board of Directors of the Bank pursuant to the
                           Bank's Annual  Incentive  Plan for Select  Executives
                           for the year in which the  employment  of the Officer
                           by  the  Bank   terminates  or,  (ii)  if  no  target
                           incentive   opportunity  has  been  established  with
                           respect to the Officer by the Compensation  Committee
                           of the Board of Directors of the Bank for the year in
                           which  the  employment  of the  Officer  by the  Bank
                           terminates,  then the lowest percentage of the target
                           incentive   opportunity   to  be  determined  by  the
                           individual  performance of the Officer established by
                           the Compensation  Committee of the Board of Directors
                           of the Bank for the  Officer  pursuant  to the Annual
                           Incentive  Plan  for  Select  Executives  during  the
                           period of three (3) years ending immediately prior to
                           the date of termination;

                           "FP" is  either  (i) the  percentage  of the TIO with
                           respect to the Officer  which is to be  determined by
                           the   financial   performance   of  the   Company  as
                           established  by  the  Compensation  Committee  of the
                           Board of Directors of the Bank pursuant to the Bank's
                           Annual  Incentive Plan for Select  Executives for the
                           year in which the  employment  of the  Officer by the
                           Bank  terminates  or,  (ii)  if no  target  incentive
                           opportunity has been  established with respect to the
                           Officer by the Compensation Committee of the Board of
                           Directors  of the  Bank  for the  year in  which  the
                           employment  of the  Officer  by the Bank  terminates,
                           then a percentage equal to 100% minus the IP;

                           "AP" is the highest award percentage available to the
                           Officer with respect to the financial  performance of
                           the  Company  as  established  by  the   Compensation
                           Committee  of the  Board  of  Directors  of the  Bank
                           pursuant  to the  Bank's  Annual  Incentive  Plan for
                           Select   Executives   for  the  year  in  which   the
                           employment of the Officer by the Bank  terminates or,
                           (ii) if no  target  incentive  opportunity  has  been
                           established  with  respect  to  the  Officer  by  the
                           Compensation  Committee  of the Board of Directors of
                           the Bank for the year in which the  employment of the
                           Officer  by the Bank  terminates,  then  the  highest
                           award  percentage   available  to  the  Officer  with
                           respect to the financial  performance  of the Company
                           established  by  the  Compensation  Committee  of the
                           Board  of  Directors  of the  Bank  for  the  Officer
                           pursuant to the Annual

                                   Page -10-
<PAGE>   11

                           Incentive  Plan  for  Select  Executives  during  the
                           period of three (3) years ending immediately prior to
                           the date of termination;

                           "NY" is the Assurance Period expressed as a number of
                           years (rounded, if such period is not a whole number,
                           to the next highest whole number).

                           The  Bonus  Severance  Payment  shall be made  within
                           thirty (30) days after the Officer's  termination  of
                           employment  and  shall  be in lieu of any  claim to a
                           continuation of  participation  in annual bonus plans
                           of the Bank which the Officer might otherwise have.

         The payments and benefits  described in section 6(b) are referred to in
         this  Agreement  as  the  "Additional  Termination  Entitlements".  The
         payments  described in section  6(b)(ii) and (iii) shall be computed at
         the  expense  of the  Company  by an  attorney  of the firm of  Thacher
         Proffitt & Wood,  Two World Trade Center,  New York, New York 10048 or,
         if such firm is unavailable  or unwilling to perform such  calculation,
         by a firm of independent  certified public accountants  selected by the
         Officer and reasonably  satisfactory  to the Company (the  "Computation
         Advisor").  The  determination  of the  Computation  Advisor  as to the
         amount of such  payments  shall be final and  binding in the absence of
         manifest error.

         Section 7.   Tax Indemnification.

         (a)   If the Officer's  employment  terminates under  circumstances
               entitling  the  Officer or, in the event of the  Officer's  death
               following such termination but before payment,  his or her estate
               to the Additional Termination Entitlements, the Company shall pay
               to the Officer or, in the event of the  Officer's  death,  his or
               her estate an additional amount intended to indemnify the Officer
               against the financial effects of the excise tax imposed on excess
               parachute  payments  under  section  28OG of the Code  (the  "Tax
               Indemnity   Payment").   The  Tax  Indemnity   Payment  shall  be
               determined under the following formula:

                                                    E x P
                  TIP      =      --------------------------------------------

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

                where:

               "TIP" is the Tax  Indemnity  Payment,  before the deduction of
                applicable federal, state and local withholding taxes;

               "E" is the percentage rate at which an excise tax is assessed
               under section 4999 of the Code;

                                    Page -11-
<PAGE>   12

                  "P" is the amount  with  respect  to which such  excise tax is
                  assessed, determined without regard to this section 16;

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

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

                  Such  computation  shall be made at the expense of the Company
                  by the Computation Advisor and shall be based on the following
                  assumptions:

                  (i)      that a change in  ownership,  a change  in  effective
                           ownership or control or a change in the  ownership of
                           a  substantial  portion  of the assets of the Bank or
                           the  Company  has  occurred  within  the  meaning  of
                           section   28OG  of  the  Code  (a  "28OG   Change  of
                           Control");

                  (ii)     that  all  direct  or  indirect  payments  made to or
                           benefits conferred upon the Officer on account of the
                           Officer's  termination  of employment  are "parachute
                           payments"  within the meaning of section  28OG of the
                           Code; and

                  (iii)    that  no  portion  of  such  payments  is  reasonable
                           compensation  for  services  rendered  prior  to  the
                           Officer's termination of employment.

         (b)   With  respect  to  any  payment  that  is  presumed  to be a
               parachute  payment for purposes of section 28OG of the Code,  the
               Tax Indemnity Payment shall be made to the Officer on the earlier
               of the  date the  Company,  the Bank or any  direct  or  indirect
               subsidiary or affiliate of the Company or the Bank is required to
               withhold  such tax or the date the tax is  required to be paid by
               the Officer,  unless, prior to such date, the Company delivers to
               the Officer the written opinion (the "Opinion  Letter"),  in form
               and  substance  reasonably  satisfactory  to the Officer,  of the
               Computation  Advisor or, if the Computation  Advisor is unable to
               provide  such  opinion,  of an  attorney  or firm of  independent
               certified  public   accountants   selected  by  the  Company  and
               reasonably  satisfactory  to the Officer,  to the effect that the
               Officer has a reasonable basis on which to conclude that:

                  (i)      no 28OG Change in Control has occurred, or

                  (ii)     all or part of the payment or benefit in question is
                           not a parachute payment for purposes of section 28OG
                           of the Code, or

                                    Page -12-
<PAGE>   13

                  (iii)    all or a part of such payment or benefit  constitutes
                           reasonable  compensation for services  rendered prior
                           to the 28OG Change of Control, or

                  (iv)     for some  other  reason  which  shall be set forth in
                           detail in such  letter,  no  excise  tax is due under
                           section 4999 of the Code with respect to such payment
                           or benefit.

                  If the Company  delivers an Opinion  Letter,  the  Computation
                  Advisor shall re- compute, and the Company shall make, the Tax
                  Indemnity Payment in reliance on the information  contained in
                  the Opinion Letter.

         (c)   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  with
               respect to which the Tax Indemnity  Payment is made,  the Officer
               or the 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 pursuant to sections 7(a) or 7(b), when increased by
               the amount of the payment  made to the  Officer  pursuant to this
               section  7(c),  or when reduced by the amount of the payment made
               to the Company  pursuant to this section 7(c),  equals the amount
               that should have  properly been paid to the Officer under section
               7(a).  The interest  paid to the Company  under this section 7(c)
               shall  be  determined   at  the  rate   provided   under  section
               1274(b)(2)(B)  of the Code. The payment made to the Officer shall
               include  such amount of interest as is  necessary  to satisfy any
               interest  assessment made by the Internal  Revenue Service and an
               additional amount equal to any monetary penalties assessed by the
               Internal  Revenue  Service on account of an  underpayment  of the
               excise tax. To confirm that the proper  amount,  if any, was paid
               to the Officer under this section 7, the Officer shall furnish to
               the Company a copy of each tax return which  reflects a liability
               for an excise tax, at least 20 days before the date on which such
               return is required to be filed with the Internal Revenue Service.
               Nothing in this  Agreement  shall give the  Company  any right to
               control  or  otherwise   participate  in  any  action,   suit  or
               proceeding  to  which  the  Officer  is a party  as a  result  of
               positions  taken on the Officer's  federal income tax return with
               respect to the Officer's liability for excise taxes under section
               4999 of the Code.

         Section 8.   Indemnification upon and following a Change of Control.

         (a)   From and  after  the  effective  date of a Change  of  Control
               through the sixth anniversary of such effective date, the Bank
               and the  Company  agree to  indemnify  and hold  harmless  the
               Officer,  against any costs or expenses (including  reasonable
               attorneys' fees), judgments, fines, losses, claims, damages or
               liabilities  (collectively,  "Costs")  incurred in  connection
               with any claim,  action,  suit,  proceeding or  investigation,
               whether  civil,  criminal,  administrative  or  investigative,
               arising out of

                                    Page -13-

<PAGE>   14

                  matters  existing  or  occurring  at or  prior to the time the
                  Change of Control became effective whether asserted or claimed
                  prior  to,  at or after the  effective  date of the  Change of
                  Control,  and to advance any such Costs to the Officer as they
                  are from time to time  incurred,  in each case to the  fullest
                  extent the Officer would have been  indemnified  as a director
                  or officer of the Bank or the Company,  as applicable,  and as
                  then permitted under applicable law.

         (b)      The Officer,  seeking to claim  indemnification  under section
                  8(a) of this  Agreement  and upon  learning of any such claim,
                  action,  suit,  proceeding or  investigation,  shall  promptly
                  notify the Bank  thereof,  but the failure to so notify  shall
                  not relieve the Bank or the  Company of any  liability  it may
                  have pursuant to this Agreement to the Officer if such failure
                  does not  materially and  substantially  prejudice the Bank or
                  the  Company.  In the event of any such claim,  action,  suit,
                  proceeding or investigation,

                  (i)    the Bank and the Company shall have the right to assume
                         the defense thereof with counsel reasonably  acceptable
                         to the Officer,  and the Bank and the Company shall not
                         be liable to the  Officer  for any  legal  expenses  of
                         other counsel  subsequently  incurred by the Officer in
                         connection with the defense thereof, except that if the
                         Bank  and the  Company  do not  elect  to  assume  such
                         defense  within a  reasonable  time or counsel  for the
                         Officer at any time advises that there are issues which
                         raise  conflicts  of  interest  between the Bank or the
                         Company  and the Officer  (and  counsel for the Bank or
                         the Company does not disagree),  the Officer may retain
                         counsel  satisfactory to the Officer,  and the Bank and
                         the Company shall remain responsible for the reasonable
                         fees and  expenses of such  counsel as set forth above,
                         to  be  paid  promptly  as   statements   therefor  are
                         received;  provided,  however,  that  the  Bank and the
                         Company shall be obligated  pursuant to this  paragraph
                         (b)(i)  to pay for  only one  firm of  counsel  for all
                         indemnified   parties  in  any  one  jurisdiction  with
                         respect to any given claim, action, suit, proceeding or
                         investigation  unless the use of one  counsel  for such
                         indemnified  parties,   including  the  Officer,  would
                         present such counsel with a conflict of interest;

                  (ii)   the Officer will reasonably cooperate in the defense
                         of any such matter; and

                  (iii)  the Bank and the Company  shall not be liable for any
                         settlement  effected  by the  Officer  without  their
                         prior   written   consent,   which   shall   not   be
                         unreasonably withheld.

         Section 9.   Resignation.

         (a)      The Officer may resign from the Officer's  employment with the
                  Bank at any time. A resignation  under this section 9 shall be
                  effected by notice of resignation  given by the Officer to the
                  Bank and shall take effect on the later of the effective  date
                  of

                                    Page -14-
<PAGE>   15

                  termination  specified in such notice or the date on which the
                  notice of  termination  is deemed  given by the  Officer.  For
                  purposes of this Agreement, retirement of the Officer from the
                  employment  of the  Bank or the  Company  under  circumstances
                  defined as "normal retirement" or "early retirement"  pursuant
                  to  any  qualified   defined  benefit  or  qualified   defined
                  contribution  pension  plan  maintained  by the Bank  shall be
                  deemed  a  resignation  by  the  Officer's  of  the  Officer's
                  employment  with the Bank.  A  resignation  by the  Officer as
                  described in section 5(a)(ii) of this Agreement,  for purposes
                  of this  Agreement  shall be  deemed  to be  termination  with
                  "Cause".  The  Officer's  resignation  of any of the positions
                  within the Bank or the  Company to which he has been  assigned
                  shall be deemed a resignation from all such positions.

         (b)      The  Officer's  resignation  shall be  deemed  to be for "Good
                  Reason" if the effective date of resignation occurs during the
                  Term,  but on or after the effective  date of a Pending Change
                  of Control or Change of Control, and is on account of:

                  (i)      the  failure of the Bank  (whether by act or omission
                           of the Board of Directors,  or otherwise) to appoint,
                           re-appoint,  elect or  re-elect  the  Officer  to the
                           office  and  position  with  the  Bank  that  he held
                           immediately prior to the Change of Control or Pending
                           Change of Control  (the  "Assigned  Office")  or to a
                           more senior office and position;

                  (ii)     if the Officer is or becomes a member of the Board of
                           Directors   of  the   Bank,   the   failure   of  the
                           shareholders  of the Bank  (whether in an election in
                           which  the  Officer  stands  as a  nominee  or  in an
                           election  where the  Officer  is not a  nominee),  to
                           elect or re-elect the Officer to such directorship at
                           the  expiration of the Officer's  term as a director,
                           unless  such  failure  is a result  of the  Officer's
                           refusal to stand for election;

                  (iii)    a material failure by the Bank,  whether by amendment
                           of the charter or  organization,  by-laws,  action of
                           the Board of Directors of the Bank or  otherwise,  to
                           vest  in  the  Officer  the  functions,   duties,  or
                           responsibilities   customarily  associated  with  the
                           Assigned Office; provided that the Officer shall have
                           given  notice of such  failure  to the Bank,  and the
                           Bank has not fully cured such failure  within  thirty
                           (30) days after such notice is deemed given;

                  (iv)     any reduction of the Officer's rate of base salary in
                           effect from time to time, whether or not material, or
                           any   failure,   other   than   due   to   reasonable
                           administrative  error  that is fully  cured  within 5
                           days  after  notice of such  administrative  error is
                           deemed  given,  to pay any  portion of the  Officer's
                           compensation as and when due;

                  (v)      any change in the terms and conditions of any
                           compensation or benefit program in which the Officer
                           participates which, either individually or

                                    Page -15-
<PAGE>   16

                           together with other changes,  has a material  adverse
                           effect on the aggregate  value of the Officer's total
                           compensation package; provided that the Officer shall
                           have given notice of such material  adverse effect to
                           the  Bank,  and the Bank  has not  fully  cured  such
                           failure  within thirty (30) days after such notice is
                           deemed given;

                  (vi)     any material breach by the Company or the Bank of any
                           material  term,  condition  or covenant  contained in
                           this Agreement;  provided that the Officer shall have
                           given  notice  to the  Company  and the  Bank of such
                           material adverse effect,  and the Company or the Bank
                           have not fully cured such failure  within thirty (30)
                           days after such notice is deemed given; or

                  (vii)    a  change  in  the  Officer's   principal   place  of
                           employment  to a  location  that is outside of Nassau
                           County or Queens County, New York.

                  In all other  cases,  a  resignation  by the Officer  shall be
                  deemed to be without Good Reason. In the event of resignation,
                  the Officer shall state in the Officer's notice of resignation
                  whether the Officer  considers his or her  resignation to be a
                  resignation  with Good Reason,  and if he does, he shall state
                  in such notice the grounds which  constitute Good Reason.  The
                  Officer's  determination of the existence of Good Reason shall
                  be conclusive  in the absence of fraud,  bad faith or manifest
                  error.

         (c)      In  the  event  of the  Officer's  resignation  for  any
                  reason,   the  Bank  shall  pay  and  deliver  the  Standard
                  Termination  Entitlements.  In the  event  of the  Officer's
                  resignation   with  Good  Reason  and  such  resignation  is
                  effective within six (6) months of the effective date of the
                  Change of Control (the  "Resignation  Window  Period"),  the
                  Bank shall also pay and deliver the  Additional  Termination
                  Entitlements.  In the event the Officer's  resignation  with
                  Good Reason is based upon section 9(b)(iii),(iv),(v) or (vi)
                  and the notice  required  by such  provision  has been given
                  within  six  months of the  effective  date of the Change of
                  Control but the applicable cure period will not expire until
                  on or after  the  date  which is six  months  following  the
                  effective  date of the Change of  Control,  the  Resignation
                  Window  Period  shall  be  extended  so as  expire  30  days
                  following the expiration of the applicable cure period.

         Section 10.  Terms and Conditions of the Additional Termination
                      Entitlements.

         The Bank and the Officer hereby stipulate that the damages which may be
incurred by the Officer  following any termination of employment are not capable
of  accurate  measurement  as of the  date  first  above  written  and  that the
Additional  Termination  Entitlements  constitute  reasonable  damages under the
circumstances  and 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 payment
and delivery of the Additional Termination Entitlements on the receipt of:

                                    Page -16-

<PAGE>   17

         (a)      the  Officer's  resignation  from any and all  positions
                  which he holds as an officer,  director or committee  member
                  with respect to the Bank or any  subsidiary  or affiliate of
                  the Bank; and

         (b)      a release  of the Bank and the  Company  and  their  officers,
                  directors, shareholders,  subsidiaries and affiliates, in form
                  and  substance  satisfactory  to the Bank, of any liability to
                  the  Officer,   whether  for   compensation  or  damages,   in
                  connection with the Officer's employment with the Bank and the
                  termination  of  such  employment,  except  for  the  Standard
                  Termination    Entitlements,    the   Additional   Termination
                  Entitlements,  the Tax Indemnity  Payment and  indemnification
                  payments  due the Officer  pursuant to section 8 or section 16
                  of this Agreement.

To the extent the Bank  conditions  the payment and  delivery of the  Additional
Termination  Entitlements  or any other amount due under this Agreement upon the
receipt of the release  provided  in section  10(b) of this  Agreement  and such
release by law may not be effective  until the  expiration  of a required  prior
notice and/or a recission  period  following its execution by the Officer,  then
any payment required to be made pursuant to this Agreement may be deferred until
the  expiration  of the period which is the sum of the period  within which such
payment was required to be made under the terms of this  Agreement  but for this
section 10 and the period of any required  prior notice and  recission  periods,
provided,  however,  that the Bank shall pay to the Officer for each day of such
deferral  interest  in  addition  to any other  amounts due and owing under this
Agreement at the rate of the federal short term rate  established  under section
1274 of the Code for the month in which the Officer's  termination of employment
occurs  calculated  on the basis of a 360 day year for the actual number of days
of such deferral on the amount so deferred.

         Section 11.  Confidentiality.

         Unless the Officer obtains the prior written consent of the Bank or the
Company,  the Officer shall keep  confidential  and shall refrain from using for
the  benefit  of  himself or  herself,  or any  person or entity  other than the
Company  or any  entity  which is a  subsidiary  of the  Company or of which the
Company is a subsidiary,  any material document or information obtained from the
Company,  or from its parent or  subsidiaries,  in the  course of the  Officer's
employment with any of them concerning their properties,  operations or business
(unless such document or  information  is readily  ascertainable  from public or
published  information  or trade sources or has otherwise been made available to
the public through no fault of the Officer) until the same ceases to be material
(or becomes so ascertainable or available);  provided,  however, that nothing in
this  section  11 shall  prevent  the  Officer,  with or without  the  Company's
consent,  from  participating  in or  disclosing  documents  or  information  in
connection  with  any  judicial  or  administrative  investigation,  inquiry  or
proceeding to the extent that such participation or disclosure is required under
applicable law.

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

         Except to the extent specifically provided herein, the termination of
the Officer's employment

                                    Page -17-

<PAGE>   18

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 or non-qualified retirement, pension, savings,
thrift,  profit-sharing  or stock bonus  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,  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
severance  agreement,  plan or program covering the Officer to which the Bank or
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.  The Additional Termination  Entitlements provided hereunder,
when due and payable or provided to the Officer, or in the case of the Officer's
death, to his or her estate,  surviving dependants or designated  beneficiaries,
as  applicable,  are  acknowledged  to be in lieu  of any  benefits  that  would
otherwise be provided under such circumstances  pursuant to the Bank's Severance
Pay Plan, as amended, or Severance Compensation Plan, as amended.

         Section 13.  Successors and Assigns.

         This  Agreement  will inure to the  benefit of and be binding  upon the
Officer,   the  Officer's  legal   representatives   and  testate  or  intestate
distributees,  and the Company and the Bank and 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 assets and  business of the Company or the Bank may be
sold or  otherwise  transferred.  Failure  of the  Company  to  obtain  from any
successor its express written  assumption of the Company's or Bank's obligations
hereunder  at least 60 days in advance of the  scheduled  effective  date of any
such  succession  shall,
if
such succession constitutes a Change of Control,  constitute Good Reason for the
Officer's resignation on or at any time during the Term following the occurrence
of such succession.

         Section 14.  No Attachment.

         Except as  required  by law,  no right to receive  payments  under this
Agreement  shall be  subject to  anticipation,  commutation,  alienation,  sale,
assignment,  encumbrance,  charge,  pledge, or  hypothecation,  or to execution,
attachment,  levy, or similar process or assignment by operation of law, and any
attempt,  voluntary  or  involuntary,  to affect any such action  shall be null,
void, and of no effect.

         Section 15.  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 days after mailing if

                                    Page -18-

<PAGE>   19

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:

                  Harold R. Leistmann
                  29 Shenandoah Boulevard
                  Coram, New York 11727

         If to the Company or the Bank:

                  Astoria Financial Corporation
                  One Astoria Federal Plaza
                  Lake Success, New York 11042

                  Attention: Chairman, President and Chief Executive Officer

                  with a copy to:

                  Thacher Proffitt & Wood
                  Two World Trade Center
                  New York, New York 10048

                  Attention:  W. Edward Bright, Esq.

         Section 16.   Indemnification for Attorneys' Fees.

         (a)      The Bank shall  indemnify,  hold harmless and defend the
                  Officer  against  reasonable  costs,  including  legal fees,
                  incurred  by him in  connection  with or arising  out of any
                  action, suit or proceeding in which he 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..  For  purposes  of  this
                  Agreement,  any  settlement  agreement  which  provides  for
                  payment  of  any  amounts  in   settlement   of  the  Bank's
                  obligations   under  this  Agreement   shall  be  conclusive
                  evidence of the  Officer's  entitlement  to  indemnification
                  under this Agreement,  and any such indemnification payments
                  shall be in  addition  to amounts  payable  pursuant to such
                  settlement  agreement,   unless  such  settlement  agreement
                  expressly provides otherwise.

         (b)      The Bank's or the Company's obligation to make the payments
                  provided for in this

                                    Page -19-

<PAGE>   20

                  Agreement   and   otherwise   to  perform   their   respective
                  obligations  under this Agreement shall not be affected by any
                  set-off,  counterclaim,  recoupment,  defense or other  claim,
                  right or action which the Bank or the Company may have against
                  the  Officer  or  others.  In no event  shall the  Officer  be
                  obligated to seek other employment or take any other action by
                  way of mitigation of the amounts  payable to the Officer under
                  any of the provisions of this Agreement and such amounts shall
                  not be  reduced  whether  or not  the  Officer  obtains  other
                  employment. Unless it is determined that the Officer has acted
                  frivolously  or in bad faith,  the Bank shall pay as incurred,
                  to the  full  extent  permitted  by law,  all  legal  fees and
                  expenses which the Officer may reasonably incur as a result of
                  or in connection  with the Officer's  consultation  with legal
                  counsel or arising out of any action,  suit,  proceeding,  tax
                  controversy,  appeal or  contest  (regardless  of the  outcome
                  thereof)  by the Bank,  the  Company,  the  Officer  or others
                  regarding  the  validity or  enforceability  of, or  liability
                  under,  any  provision of this  Agreement or any  guarantee of
                  performance  thereof  (including as a result of any contest by
                  the Officer  about the amount of any payment  pursuant to this
                  Agreement),  plus in each case interest on any delayed payment
                  at  the  applicable  Federal  rate  provided  for  in  section
                  7872(f)(2)(A) of the Code.

         Section 17.  Employment Rights and Funding Obligations.

         (a)      Nothing  expressed or implied in this  Agreement  shall create
                  any right or duty on the part of the Bank,  the Company or the
                  Officer to have the Officer continue as an officer of the Bank
                  or the Company or to remain in the employment of the Bank, the
                  Company.

         (b)      Nothing  expressed or implied in this  Agreement  shall create
                  any right or duty on the part of the Bank,  the Company or the
                  Officer  to  create a trust  of any kind to fund any  benefits
                  which may be payable  pursuant to this  Agreement,  and to the
                  extent that the Officer  acquires a right to receive  benefits
                  from the Bank or the Company pursuant to this Agreement,  such
                  right  shall be no  greater  than the  right of any  unsecured
                  general creditor of the Bank or the Company, respectively.

         Section 18.  Withholding.

         The Bank or the Company, as applicable,  shall have the right to deduct
and  withhold  from any amounts paid in cash  pursuant to this  Agreement by the
Bank or the Company, respectively, any taxes or other amounts required by law to
be withheld with respect to such payment.

         Section 19.  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.

                                    Page -20-

<PAGE>   21

         Section 20.  Survival.

         The rights and  obligations  of the Bank,  the  Company and the Officer
under this Agreement,  unless  otherwise  expressly  provided in this Agreement,
shall survive the expiration of the term or other termination of this Agreement.

                                    Page -21-

<PAGE>   22

         Section 21.   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 22.  Counterparts.

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

         Section 23.   Governing Law.

         Except to the extent  preempted by federal law, this Agreement shall be
governed by and construed and enforced in accordance  with the laws of the State
of New York  applicable to contracts  entered into and to be performed  entirely
within the State of New York.

         Section 24.    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 25.    Entire Agreement; Modifications.

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

         Section 26.    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  on  account  of  the  Officer's  termination  of
                  employment  exceed three times the  Officer's  average  annual
                  total  compensation  for the last  five  consecutive  calendar
                  years to end prior to the Officer's

                                    Page -22-

<PAGE>   23

                  termination of employment  with the Bank (or for the Officer's
                  entire  period of  employment  with the Bank if less than five
                  calendar years).

         (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.  ss.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.ss.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. ss.1818(e)(4) or (g)(1), all prospective obligations of
                  the  Bank  under  this  Agreement  shall  terminate  as of the
                  effective date of the order, but vested rights and obligations
                  of the Bank and the Officer shall not be affected.

         (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.  ss.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 affected.

         (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.ss.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.

                                    Page -23-

<PAGE>   24

If and to the extent  that any of the  foregoing  provisions  shall  cease to be
required  or by  applicable  law,  rule or  regulation,  the same  shall  become
inoperative as though eliminated by formal amendment of this Agreement.  None of
the foregoing  provisions,  other than section 26(b) shall limit any obligations
of the Company under this Agreement.

         Section 27.   Guaranty.

         The 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.  Solely for  purposes of  determining  the
extent of the  Company's  guarantee,  the  obligations  of the Bank  under  this
Agreement shall be determined as though section 26(a), (c), (d), (e) and (f) did
not apply to the Bank.

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

                                                     /S/ Harold R. Leistmann
                                                     -------------------------
                                                     HAROLD R. LEISTMANN

Attest:                                    ASTORIA FEDERAL SAVINGS AND LOAN
                                           ASSOCIATION

By:      /S/ William K. Sheerin            By:    /S/ George L. Engelke, Jr.
         -----------------------------            -----------------------------
Name:    William K. Sheerin                Name:  George L. Engelke, Jr.
Title:   Executive Vice President and      Title: Chairman, President and Chief
         Secretary                                Executive Officer

Attest:                                   ASTORIA FINANCIAL CORPORATION

By:      /S/ William K. Sheerin            By:    /S/ George L. Engelke, Jr.
         ----------------------------             ----------------------------
Name:    William K. Sheerin                Name:  George L. Engelke, Jr.
Title:   Executive Vice President and      Title: Chairman, President and Chief
         Secretary                                Executive Officer

                                    Page -24-

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