Document:

Exhibit 10.1

    
      
        

      

    

    Exhibit
      10.1

     

     

     

     

    DELANCO
      BANCORP, INC.

    

    PLAN
      OF STOCK ISSUANCE

    

    DATED
      AS OF NOVEMBER 20, 2006

    

     

     

     

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF CONTENTS

    

    
      	 	 	
              PAGE

            
	 	 	 
	
              1.

            	
              Introduction

            	
              1

            
	 	 	 
	
              2.

            	
              Definitions

            	
              1

            
	 	 	 
	
              3.

            	
              General
                Procedure for the Stock Issuance

            	
              5

            
	 	 	 
	
              4.

            	
              Total
                Number of Shares and Purchase Price of Common
                Stock

            	
              5

            
	 	 	 
	
              5.

            	
              Subscription
                Rights of Eligible Account Holders (First
                Priority)

            	
              6

            
	 	 	 
	
              6.

            	
              Subscription
                Rights of Tax-Qualified Employee Stock Benefit
                Plans (Second Priority)

            	
              7

            
	 	 	 
	
              7.

            	
              Subscription
                Rights of Supplemental Eligible Account Holders
                (Third Priority)

            	
              7

            
	 	 	 
	
              8.

            	
              Subscription
                Rights of Other Members (Fourth
                Priority)

            	
              8

            
	 	 	 
	
              9.

            	
              Community
                Offering, Syndicated Community Offering, Public
                Offering and Other Offerings

            	
              8

            
	 	 	 
	
              10.

            	
              Limitations
                on Subscriptions and Purchases of Common
                Stock

            	
              10

            
	 	 	 
	
              11.

            	
              Timing
                of Subscription Offering; Manner of Exercising
                Subscription Rights

            	 
	 	
              and
                Order Forms

            	
              11

            
	 	 	 
	
              12.

            	
              Payment
                for Common Stock

            	
              13

            
	 	 	 
	
              13.

            	
              Account
                Holders in Nonqualified States or Foreign
                Countries

            	
              14

            
	 	 	 
	
              14.

            	
              Requirements
                Following the Stock Issuance for Registration,
                Market Making and Stock Exchange Listing

            	
              14

            
	 	 	 
	
              15.

            	
              Completion
                of the Stock Offering

            	
              14

            
	 	 	 
	
              16.

            	
              Requirements
                for Stock Purchases by Directors and Officers
                Following the Stock Issuance

            	
              14

            
	 	 	 
	
              17.

            	
              Restrictions
                on Transfer of Stock

            	
              15

            
	 	 	 
	
              18.

            	
              Stock
                Compensation Plans

            	
              15

            
	 	 	 
	
              19.

            	
              Dividend
                and Repurchase Restrictions on
                Stock

            	
              16

            
	 	 	 
	
              20.

            	
              Amendment
                or Termination of the Plan

            	
              16

            
	 	 	 
	
              21.

            	
              Interpretation
                of the Plan

            	
              16

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              1.

            	
              INTRODUCTION.

            

    

    

    For
      purposes of this section, all capitalized terms have the meanings ascribed
      to
      them in Section 2. 

    

    On
      November 15, 2002, Delanco Federal Savings Bank (the “Bank”) reorganized into
      the mutual holding company form of organization whereby the Bank became a wholly
      owned subsidiary of Delanco Bancorp, Inc. (the “Holding Company”) and the
      Holding Company became a wholly owned subsidiary of Delanco MHC (the “MHC”).
      This Plan of Stock Issuance provides for a stock offering, in compliance with
      OTS regulations, of up to 49.9% of the aggregate total voting stock of the
      Holding Company. This Plan of Stock Issuance provides that non-transferable
      subscription rights to purchase up to 49.9% of the Common Stock of the Holding
      Company shall be granted to certain Members of the MHC pursuant to the Plan
      and
      in accordance with the rules and regulations of the OTS. The Stock Issuance
      will
      permit the Bank to control the amount of capital being raised, while at the
      same
      time enabling the Bank to: (1) support future lending and operational growth,
      including branching activities and acquisitions of other financial institutions
      or financial services companies; (2) increase its ability to render services
      to
      the communities it serves; (3) compete more effectively with commercial banks
      and other financial institutions for new business opportunities; and (4)
      increase its equity capital base and access the capital markets when needed.
      Upon completion of the Stock Issuance, the MHC will continue to own at least
      a
      majority of the Common Stock of the Holding Company.

    

    
      	
              2.
                

            	
              DEFINITIONS. 

            

    

    

    As
      used
      in this Plan, the terms set forth below have the following meaning:

    

    ACTING
      IN CONCERT
      means
      (i) knowing participation in a joint activity or interdependent conscious
      parallel action towards a common goal whether or not pursuant to an express
      agreement or understanding; or (ii) a combination or pooling of voting or other
      interests in the securities of an issuer for a common purpose pursuant to any
      contract, understanding, relationship, agreement or other arrangement, whether
      written or otherwise. A Person or company which acts in concert with another
      Person or company (“other party”) shall also be deemed to be acting in concert
      with any Person or company who is also acting in concert with that other party,
      except that any Tax-Qualified Employee Stock Benefit Plan will not be deemed
      to
      be acting in concert with its trustee or a person who serves in a similar
      capacity solely for the purpose of determining whether stock held by the trustee
      and stock held by the plan will be aggregated and participants or beneficiaries
      of any such Tax- Qualified Employee Stock Benefit Plan will not be deemed to
      be
      acting in concert solely as a result of their common interests as participants
      or beneficiaries. When Persons act together for such purpose, their group is
      deemed to have acquired their stock. The determination of whether a group is
      Acting in Concert shall be made solely by the Board of Directors of the Holding
      Company or Officers delegated by such Board and may be based on any evidence
      upon which the Board or such delegatee chooses to rely, including, without
      limitation, joint account relationships or the fact that such Persons have
      filed
      joint Schedules 13D or Schedules 13G with the SEC with respect to other
      companies. Directors of the Holding Company, the Bank and the MHC shall not
      be
      deemed to be Acting in Concert solely as a result of their membership on any
      such board or boards.

    

    AFFILIATE
      means a
      Person who, directly or indirectly, through one or more intermediaries, controls
      or is controlled by or is under common control with the Person specified.

    
      
        
        

      

      
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    ASSOCIATE
      of a
      Person means (i) a corporation or organization (other than the MHC, the Holding
      Company, the Bank or a majority-owned subsidiary of the MHC, the Holding Company
      or the Bank), if the Person is a senior officer or partner or beneficially
      owns,
      directly or indirectly, 10% or more of any class of equity securities of the
      corporation or organization, (ii) a trust or other estate, if the Person has
      a
      substantial beneficial interest in the trust or estate or is a trustee or
      fiduciary of the trust or estate, provided, however, that such term shall not
      include any Tax-Qualified Employee Stock Benefit Plan of the MHC, the Holding
      Company or the Bank in which such Person has a substantial beneficial interest
      or serves as a trustee or in a similar fiduciary capacity, and (iii) any person
      who is related by blood or marriage to such Person and who lives in the same
      home as the Person or who is a director or senior officer of the MHC, the
      Holding Company or the Bank or any of their subsidiaries.

    

    BANK
      means
      Delanco Federal Savings Bank.

    

    BANK
      BENEFIT PLAN(S) includes,
      but is not limited to, Tax Qualified Employee Stock Benefit Plans and Non-Tax
      Qualified Employee Stock Benefit Plans.

    

    CODE
      means
      the Internal Revenue Code of 1986, as amended. 

    

    COMMON
      STOCK
      means
      the shares of common stock, par value $0.01 per share, to be issued by the
      Holding Company to the MHC and to be issued and sold by the Holding Company
      in
      the Offerings, all pursuant to the Plan. The Common Stock will not be insured
      by
      the Federal Deposit Insurance Corporation.

    

    COMMUNITY
      OFFERING
      means
      the offering for sale by the Holding Company of any shares of Common Stock
      not
      subscribed for in the Subscription Offering to such Persons as may be selected
      by the Holding Company in its sole discretion and to whom a copy of the
      Prospectus is delivered by or on behalf of the Holding Company. 

    

    CONTROL
      (including the terms “controlling,” “controlled by,” and “under common control
      with”) means the possession, directly or indirectly, of the power to direct or
      cause the direction of the management and policies of a Person, whether through
      the ownership of voting securities, by contract or otherwise. 

    

    DEPOSIT
      ACCOUNT
      means
      any withdrawable account as defined in Section 561.42 of the Rules and
      Regulations of the OTS, including a demand account as defined in Section 561.16
      of the Rules and Regulations of the OTS. 

    

    ELIGIBLE
      ACCOUNT HOLDER
      means
      any Person holding a Qualifying Deposit on the Eligibility Record Date for
      purposes of determining Subscription Rights. 

    

    ELIGIBILITY
      RECORD DATE
      means
      the date for determining Qualifying Deposits of Eligible Account Holders and
      is
      the close of business on October 31, 2005.

    

    ESOP
      means a
      Tax Qualified Employee Stock Benefit Plan adopted by the MHC, the Holding
      Company or the Bank in connection with the Stock Issuance, the purpose of which
      shall be to acquire the Common Stock.

    

    ESTIMATED
      PRICE RANGE
      means
      the range of the estimated aggregate pro forma market value of the total number
      of shares of Common Stock to be issued in the Offerings, as determined by the
      Independent Appraiser in accordance with Section 4 hereof. 

    

    FDIC
      means
      the Federal Deposit Insurance Corporation or any successor thereto.

    
      
        
        

      

      
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    HOLDING
      COMPANY
      means
      Delanco Bancorp, Inc., the federal stock corporation that holds all of the
      outstanding capital stock of the Bank. 

    

    INDEPENDENT
      APPRAISER
      means
      the independent investment banking or financial consulting firm retained by
      the
      Holding Company and the Bank to prepare an appraisal of the estimated pro forma
      market value of the Common Stock.

    

    MANAGEMENT
      PERSON
      means
      any Officer or director of the Bank or the Holding Company or any Affiliate
      of
      the Bank or the Holding Company and any person Acting in Concert with such
      Officer or director.

    

    MEMBER
      means
      any Person qualifying as a member of the MHC in accordance with its mutual
      charter and bylaws and the laws of the United States. 

    

    MHC
      means
      Delanco MHC, the federal mutual holding company, that, upon completion of the
      Stock Issuance, shall hold at least 50.1% of the Common Stock.

    

    MINORITY
      STOCKHOLDER
      means
      any owner of the Common Stock other than the MHC.

    

    OFFERINGS
      mean the
      offering of Common Stock to Persons other than the MHC in the Subscription
      Offering, the Community Offering and the Syndicated Community or Public
      Offering. 

    

    OFFICER
      means
      the president, chief executive officer, vice-president, secretary, treasurer
      or
      principal financial officer, comptroller or principal accounting officer and
      any
      other person performing similar functions with respect to any organization
      whether incorporated or unincorporated. 

    

    ORDER
      FORM
      means
      the form or forms to be provided by the Holding Company, containing all such
      terms and provisions as set forth in Section 11 hereof, to a Participant or
      other Person by which Common Stock may be ordered in the Subscription Offering
      and in the Community Offering.

    

    OTHER
      MEMBER
      means a
      means a Person who, at the close of business on the last business day of the
      month prior to the month in which the Plan is approved by the OTS, is entitled
      to vote as a Member of the Mutual Holding Company in accordance with its charter
      and bylaws and who is not an Eligible Account Holder or a Supplemental Eligible
      Account Holder.

    

    OTS
      means
      the Office of Thrift Supervision or any successor thereto.

    

    PARTICIPANT
      means
      any Eligible Account Holder, Tax-Qualified Employee Stock Benefit Plan,
      Supplemental Eligible Account Holder or Other Member, but does not include
      the
      MHC.

    

    PERSON
      means an
      individual, a corporation, a partnership, an association, a joint-stock company,
      a limited liability company, a trust, an unincorporated organization or a
      government or political subdivision of a government.

    

    PLAN
      and
PLAN
      OF STOCK ISSUANCE
      mean
      this Plan of Stock Issuance as adopted by the Board of Directors of the Holding
      Company and any amendment hereto approved as provided herein.

    

    PROSPECTUS
      means
      the one or more documents to be used in offering the Common Stock in the
      Offerings. 

    
      
        
        

      

      
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    PUBLIC
      OFFERING
      means an
      underwritten firm commitment offering to the public through one or more
      underwriters. 

    

    PURCHASE
      PRICE
      means
      the price per share at which the Common Stock is sold by the Holding Company
      in
      the Offerings in accordance with the terms hereof. 

    

    QUALIFYING
      DEPOSIT
      means
      the aggregate balance of all Deposit Accounts in the Bank of (i) an Eligible
      Account Holder at the close of business on the Eligibility Record Date, provided
      such aggregate balance is not less than $50, and (ii) a Supplemental Eligible
      Account Holder at the close of business on the Supplemental Eligibility Record
      Date, provided such aggregate balance is not less than $50. 

    

    SEC
      means
      the United States Securities and Exchange Commission. 

    

    STOCK
      ISSUANCE
      means
      the shares of Common Stock sold in the Offerings and the shares of Common Stock
      issued to the MHC.

    

    SUBSCRIPTION
      OFFERING
      means
      the offering of the Common Stock to Participants. 

    

    SUBSCRIPTION
      RIGHTS
      mean
      nontransferable rights to subscribe for Common Stock granted to Participants
      pursuant to the terms of this Plan. 

    

    SUPPLEMENTAL
      ELIGIBLE ACCOUNT HOLDER
      means
      any Person, except directors and Officers of the Bank, the Holding Company
      or
      the MHC and their Associates, holding a Qualifying Deposit at the close of
      business on the Supplemental Eligibility Record Date. 

    

    SUPPLEMENTAL
      ELIGIBILITY RECORD DATE,
      if
      applicable, means the date for determining Supplemental Eligible Account Holders
      and shall be required if the Eligibility Record Date is more than 15 months
      prior to the date of the approval of the Stock Issuance by the OTS. If
      applicable, the Supplemental Eligibility Record Date shall be the last day
      of
      the calendar quarter preceding OTS approval of the Stock Issuance.

    

    SYNDICATED
      COMMUNITY OFFERING
      means
      the offering for sale by a syndicate of broker-dealers to the general public
      of
      shares of Common Stock not purchased in the Subscription Offering and the
      Community Offering. 

    

    TAX-QUALIFIED
      EMPLOYEE STOCK BENEFIT PLAN
      means
      any defined benefit plan or defined contribution plan, such as an employee
      stock
      ownership plan, stock bonus plan, profit-sharing plan or other plan, which
      is
      established for the benefit of the employees of the Holding Company and/or
      the
      Bank and any Affiliate thereof and which, with its related trust, meets the
      requirements to be “qualified” under Section 401 of the Code as from time to
      time in effect. A “Non-Tax-Qualified Employee Stock Benefit Plan” is any defined
      benefit plan or defined contribution stock benefit plan that is not so
      qualified. 

     

    
      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

    

     

    
      	
              3.
                

            	
              GENERAL
                PROCEDURE FOR THE STOCK
                ISSUANCE.

            

    

    

    (a)     Stock
      Issuance

     

    The
      Holding Company will offer for sale in the Offerings shares of Common Stock
      representing up to 49.9% of the pro forma market value of the Holding Company
      and the Bank. The Holding Company will apply to the OTS to allow it to retain
      up
      to 50% of the net proceeds of the Offerings, or such other amount as may be
      determined by the Board of Directors. The Bank may distribute additional capital
      to the Holding Company following the Stock Issuance, subject to the OTS
      regulations governing capital distributions.

    

    
      (b)    Applications
        and Regulatory Approval

    

     

    The
      Holding Company will take the necessary steps to prepare and file the
      Application for Approval of a Minority Stock Issuance, including the Plan,
      together with all requisite material, with the OTS for approval.

    

    The
      Holding Company shall cause to be filed with the SEC a Registration Statement
      to
      register the Common Stock under the Securities Act of 1933, as amended. The
      Holding Company shall also register or qualify the Common Stock under any
      applicable state securities laws, subject to Section 13 hereof. 

    

    
      (c)    Expenses

    

    

    The
      Holding Company and the Bank may retain and pay for the services of financial
      and other advisors and investment bankers to assist in connection with any
      or
      all aspects of the Stock Issuance, including the payment of fees to brokers
      for
      assisting Persons in completing and/or submitting Order Forms. The Holding
      Company shall use its best efforts to ensure that all fees, expenses, retainers
      and similar items shall be reasonable.

    

    
      	
              4.
                

            	
              TOTAL
                NUMBER OF SHARES AND PURCHASE PRICE OF COMMON
                STOCK.

            

    

    

    (a)    The
      aggregate price at which shares of Common Stock shall be sold in the Offerings
      shall be based on a pro forma valuation of the aggregate market value of the
      Common Stock prepared by the Independent Appraiser. The valuation shall be
      based
      on financial information relating to the Holding Company and the Bank, market,
      financial and economic conditions, a comparison of the Holding Company and
      the
      Bank with selected publicly-held financial institutions and holding companies
      and with comparable financial institutions and holding companies and such other
      factors as the Independent Appraiser may deem to be important, including, but
      not limited to, the projected operating results and financial condition of
      the
      Holding Company and Bank. The valuation shall be stated in terms of an Estimated
      Price Range, the maximum of which shall be no more than 15% above the average
      of
      the minimum and maximum of such price range and the minimum of which shall
      be no
      more than 15% below such average. The valuation shall be updated during the
      Stock Issuance as market and financial conditions warrant and as may be required
      by the OTS. 

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (b)    Based
      upon the independent valuation, the Board of Directors of the Holding Company
      shall fix the Purchase Price and the number of shares of Common Stock to be
      offered in the Offerings. The Purchase Price for the Common Stock shall be
      a
      uniform price determined in accordance with applicable OTS rules and
      regulations. The total number of shares of Common Stock to be issued in the
      Offerings shall be determined by the Board of Directors of the Holding Company
      upon conclusion of the Offerings in consultation with the Independent Appraiser
      and any financial advisor or investment banker retained by the Holding Company
      in connection with the Offerings.

    

    (c)    Subject
      to the approval of the OTS, the Estimated Price Range may be increased or
      decreased to reflect market, financial and economic conditions prior to
      completion of the Stock Issuance or to fill the Order of the Tax-Qualified
      Employee Stock Benefit Plans, and under such circumstances the Holding Company
      may increase or decrease the total number of shares of Common Stock to be issued
      in the Stock Issuance to reflect any such change. Notwithstanding anything
      to
      the contrary contained in this Plan, no resolicitation of subscribers shall
      be
      required and subscribers shall not be permitted to modify or cancel their
      subscriptions unless the gross proceeds from the sale of the Common Stock in
      the
      Offerings are less than the minimum or more than 15% above the maximum of the
      Estimated Price Range set forth in the Prospectus. In the event of an increase
      in the total number of shares offered in the Offerings due to an increase in
      the
      Estimated Price Range, the priority of share allocation shall be as set forth
      in
      this Plan. 

    

    
      	
              5.
                

            	
              SUBSCRIPTION
                RIGHTS OF ELIGIBLE ACCOUNT HOLDERS (FIRST
                PRIORITY).

            

    

    

    (a)    Each
      Eligible Account Holder shall receive, as first priority and without payment,
      Subscription Rights to purchase up to the greater of (i) $100,000 of Common
      Stock (or such maximum purchase limitation as may be established for the
      Community Offering and/or Syndicated Community Offering), (ii) one-tenth of
      1%
      of the total offering of shares in the Subscription Offering, or (iii) 15
      times the product (rounded down to the next whole number) obtained by
      multiplying the total number of shares of Common Stock offered in the
      Subscription Offering by a fraction, of which the numerator is the amount of
      the
      Qualifying Deposits of the Eligible Account Holder and the denominator is the
      total amount of all Qualifying Deposits of all Eligible Account Holders, in
      each
      case subject to Section 10 hereof. 

    

    (b)    In
      the
      event of an oversubscription for shares of Common Stock pursuant to Section
      5(a), available shares shall be allocated among subscribing Eligible Account
      Holders so as to permit each such Eligible Account Holder, to the extent
      possible, to purchase a number of shares which will make his or her total
      allocation equal to the lesser of the number of shares subscribed for or 100
      shares. Any available shares remaining after each subscribing Eligible Account
      Holder has been allocated the lesser of the number of shares subscribed for
      or
      100 shares shall be allocated among the subscribing Eligible Account Holders
      whose subscriptions remain unsatisfied in the proportion that the Qualifying
      Deposit of each such subscribing Eligible Account Holder bears to the total
      Qualifying Deposits of all such subscribing Eligible Account Holders whose
      orders are unfilled, provided that no fractional shares shall be issued.

    

    Subscription
      Rights of Eligible Account Holders who are also directors or Officers of the
      Holding Company or the Bank and their Associates shall be subordinated to those
      of other Eligible Account Holders to the extent that they are attributable
      to
      increased deposits during the one-year period preceding the Eligibility Record
      Date. 

     

    
      
        
        

      

      
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              6.
                

            	
              SUBSCRIPTION
                RIGHTS OF TAX-QUALIFIED EMPLOYEE STOCK BENEFIT
                PLANS (SECOND PRIORITY). 

            

    

    

    Tax-Qualified
      Employee Stock Benefit Plans shall receive, without payment, Subscription Rights
      to purchase in the aggregate up to 10% of the Common Stock. The subscription
      rights granted to Tax-Qualified Employee Stock Benefit Plans shall be subject
      to
      the availability of shares of Common Stock after taking into account the shares
      of Common Stock purchased by Eligible Account Holders; provided, however, that
      if the total number of shares of Common Stock is increased to any amount greater
      than the number of shares representing the maximum of the Estimated Price Range
      as set forth in the Prospectus (“Maximum Shares”), the ESOP shall have a first
      priority right to purchase any such shares exceeding the Maximum Shares. Shares
      of Common Stock purchased by any individual participant (“Plan Participant”) in
      a Tax-Qualified Employee Stock Benefit Plan using funds therein pursuant to
      the
      exercise of subscription rights granted to such Participant in his individual
      capacity as an Eligible Account Holder and/or supplemental Eligible Account
      Holder and/or purchases by such Plan Participant in the Community Offering
      shall
      not be deemed to be purchases by a Tax-Qualified Employee Stock Benefit Plan
      for
      purposes of calculating the maximum amount of Common Stock that Tax-Qualified
      Employee Stock Benefit Plans may purchase pursuant to the first sentence of
      this
      Section 6 if the individual Plan Participant controls or directs the investment
      authority with respect to such account or subaccount. Consistent with applicable
      laws and regulations and policies and practices of the OTS, the Tax-Qualified
      Employee Stock Benefit Plans may use funds contributed by the Holding Company
      or
      the Bank and/or borrowed from an independent financial institution to exercise
      such Subscription Rights, and the Holding Company and the Bank may make
      scheduled discretionary contributions thereto, provided that such contributions
      do not cause the Bank to fail to meet any applicable regulatory capital
      requirement. The Tax-Qualified Employee Stock Benefit Plans may, in whole or
      in
      part, fill their orders through open market purchases subsequent to the closing
      of the Offerings.

    

    The
      Tax-Qualified Employee Stock Benefit Plans shall not be deemed to be an
      Associate or Affiliate of or Person Acting in Concert with any Management
      Person.

    

    
      	
              7.
                

            	
              SUBSCRIPTION
                RIGHTS OF SUPPLEMENTAL ELIGIBLE ACCOUNT HOLDERS
                (THIRD PRIORITY). 

            

    

    

    (a)    In
      the
      event that the Eligibility Record Date is more than 15 months prior to the
      date
      of OTS approval of the Plan, then, and only in that event, a Supplemental
      Eligibility Record Date shall be set and each Supplemental Eligible Account
      Holder shall receive, without payment, Subscription Rights to purchase up to
      the
      greater of (i) $100,000 of
      Common
      Stock (or such maximum purchase limitation as may be established for the
      Community Offering and/or Syndicated Community Offering), (ii) one-tenth of
      1%
      of the total offering of shares in the Subscription Offering and (iii) 15 times
      the product (rounded down to the next whole number) obtained by multiplying
      the
      total number of shares of Common Stock offered in the Subscription Offering
      by a
      fraction, of which the numerator is the amount of the Qualifying Deposits of
      the
      Supplemental Eligible Account Holder and the denominator is the total amount
      of
      all Qualifying Deposits of all Supplemental Eligible Account Holders, in each
      case subject to Section 10 hereof and the availability of shares of Common
      Stock
      for purchase after taking into account the shares of Common Stock purchased
      by
      Eligible Account Holders and Tax-Qualified Employee Stock Benefit Plans through
      the exercise of Subscription Rights under Sections 5 and 6 hereof. 

    

    (b)    In
      the
      event of an oversubscription for shares of Common Stock pursuant to Section
      7(a), available shares shall be allocated among subscribing Supplemental
      Eligible Account Holders so as to permit each such Supplemental Eligible Account
      Holder, to the extent possible, to purchase a number of shares sufficient to
      make his or her total allocation (including the number of shares, if any,
      allocated in accordance with Section 5(a)) equal to the lesser of the number
      of
      shares subscribed for or 100 shares. Any remaining available shares shall be
      allocated among subscribing Supplemental Eligible Account Holders whose
      subscriptions remain unsatisfied in the proportion that the amount of their
      respective Qualifying Deposits bears to the total amount of the Qualifying
      Deposits of all such subscribing Supplemental Eligible Account Holders whose
      orders are unfilled, provided that no fractional shares shall be issued.

    
      
        
        

      

      
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              8.
                

            	
              SUBSCRIPTION
                RIGHTS OF OTHER MEMBERS (FOURTH PRIORITY).
                

            

    

    

    (a)    Each
      Other Member shall receive, without payment, Subscription Rights to purchase
      up
      to the greater of (i) $100,000 of
      Common
      Stock (or such maximum purchase limitation as may be established for the
      Community Offering and/or Syndicated Community Offering) and (ii) one-tenth
      of
      1% of the total offering of shares in the Subscription Offering, subject to
      Section 10 hereof and the availability of shares of Common Stock for purchase
      after taking into account the shares of Common Stock purchased by Eligible
      Account Holders, Tax-Qualified Employee Stock Benefit Plans and Supplemental
      Eligible Account Holders, if any, through the exercise of Subscription Rights
      under Sections 5, 6 and 7 hereof. 

    

    (b)    If,
      pursuant to this Section 8, Other Members subscribe for a number of shares
      of
      Common Stock in excess of the total number of shares of Common Stock remaining,
      available shares shall be allocated among subscribing Other Members so as to
      permit each such Other Member, to the extent possible, to purchase a number
      of
      shares which will make his or her total allocation equal to the lesser of the
      number of shares subscribed for or 100 shares. Any remaining available shares
      shall be allocated among subscribing Other Members whose subscriptions remain
      unsatisfied on a pro rata basis in the same proportion as each such Other
      Member’s subscription bears to the total subscriptions of all such subscribing
      Other Members, provided that no fractional shares shall be issued. 

    

    

    
      	
              9.

            	
              COMMUNITY
                OFFERING, SYNDICATED COMMUNITY OFFERING, PUBLIC
                OFFERING AND OTHER OFFERINGS. 

            

    

    

    (a)    If
      less
      than the total number of shares of Common Stock offered by the Holding Company
      are sold in the Subscription Offering, it is anticipated that all remaining
      shares of Common Stock shall, if practicable, be sold in a Community Offering.
      Subject to the requirements set forth herein, the manner in which the Common
      Stock is sold in the Community Offering shall have as the objective the
      achievement of the widest possible distribution of such stock. The Holding
      Company may commence the Community Offering concurrently with, at any time
      during, or as soon as practicable after the end of, the Subscription Offering,
      and the Community Offering must be completed within 45 days after the completion
      of the Subscription Offering, unless extended by the Holding Company with any
      required regulatory approval.

    

    (b)    In
      the
      event of a Community Offering, all shares of Common Stock that are not
      subscribed for in the Subscription Offering shall be offered for sale by means
      of a direct community marketing program, which may provide for the use of
      brokers, dealers or investment banking firms experienced in the sale of
      financial institution securities. Any available shares in excess of those not
      subscribed for in the Subscription Offering will be available for purchase
      by
      members of the general public to whom a Prospectus is delivered by the Holding
      Company or on its behalf, with preference given first to natural persons and
      trusts of natural persons residing in Burlington County, New Jersey (“Preferred
      Subscribers”).

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (c)    A
      Prospectus and Order Form shall be furnished to such Persons as the Holding
      Company may select in connection with the Community Offering, and each order
      for
      Common Stock in the Community Offering shall be subject to the absolute right
      of
      the Holding Company to accept or reject any such order in whole or in part
      either at the time of receipt of an order or as soon as practicable following
      completion of the Community Offering. In the event of an oversubscription for
      shares in the Community Offering, available shares will be allocated first
      to
      each Preferred Subscriber whose order is accepted in an amount equal to the
      lesser of 100 shares or the number of shares subscribed for by each such
      Preferred Subscriber, if possible. Thereafter, unallocated shares shall be
      allocated among the Preferred Subscribers whose accepted orders remain
      unsatisfied on an equal number of shares basis per order until all available
      shares have been allocated, provided that no fractional shares shall be issued.
      If there are any shares remaining after all accepted orders by Preferred
      Subscribers have been satisfied, such remaining shares shall be allocated to
      other members of the general public who purchase in the Community Offering,
      applying the same allocation described above for Preferred
      Subscribers.

    

    (d)    No
      Person
      may purchase more than $100,000 of
      Common
      Stock in the Community Offering; provided, however, that this amount may be
      increased to up to 5% of the total offering of shares of Common Stock or
      decreased to less than $100,000, subject to any required regulatory approval
      but
      without the resolicitation of subscribers.

    

    (e)    Subject
      to such terms, conditions and procedures as may be determined by the Holding
      Company, all shares of Common Stock not subscribed for in the Subscription
      Offering or ordered in the Community Offering may be sold by a syndicate of
      broker-dealers to the general public in a Syndicated Community Offering. Each
      order for Common Stock in the Syndicated Community Offering shall be subject
      to
      the absolute right of the Holding Company to accept or reject any such order
      in
      whole or in part either at the time of receipt of an order or as soon as
      practicable after completion of the Syndicated Community Offering. The amount
      of
      Common Stock that any Person may purchase in the Syndicated Community Offering
      shall not exceed $100,000 of
      Common
      Stock, provided, however, that this amount may be increased to up to 5% of
      the
      total offering of shares of Common Stock or decreased to less than $100,000,
      subject to any required regulatory approval but without the resolicitation
      of
      subscribers; and provided further that, to the extent applicable, and subject
      to
      the limitations on purchases of Common Stock set forth in this Section 9(e)
      and
      Section 10 of this Plan, in the event of an oversubscription for shares in
      the
      Syndicated Community Offering, orders for Common Stock in the Syndicated
      Community Offering shall first be filled to a maximum of 2% of the total number
      of shares of Common Stock sold in the Offerings and thereafter any remaining
      shares shall be allocated on an equal number of shares basis per order until
      all
      available shares have been allocated, provided no fractional shares shall be
      issued. The Holding Company may commence the Syndicated Community Offering
      concurrently with, at any time during, or as soon as practicable after the
      end
      of, the Subscription Offering and/or Community Offering, and the Syndicated
      Community Offering must be completed within 45 days after the completion of
      the
      Subscription Offering, unless extended by the Holding Company with any required
      regulatory approval.

    

    (f)    The
      Holding Company may sell any shares of Common Stock remaining following the
      Subscription Offering and Community Offering in a Public Offering instead of
      a
      Syndicated Community Offering. The provisions of Section 10 hereof shall not
      be
      applicable to the sales to underwriters for purposes of the Public Offering
      but
      shall be applicable to sales by the underwriters to the public. The price to
      be
      paid by the underwriters in such an offering shall be equal to the Purchase
      Price less an underwriting discount to be negotiated among such underwriters
      and
      the Holding Company, subject to any required regulatory approval or consent.
      

    

    (g)    If
      for
      any reason a Syndicated Community Offering or Public Offering of shares of
      Common Stock not sold in the Subscription Offering and the Community Offering
      cannot be effected, or if any insignificant residue of shares of Common Stock
      is
      not sold in the Offerings, the Holding Company shall use its best efforts to
      obtain other purchasers for such shares in such manner and upon such conditions
      as may be satisfactory to the OTS.

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	
              10.
                

            	
              LIMITATIONS
                ON SUBSCRIPTIONS AND PURCHASES OF COMMON STOCK.
                

            

    

    

    The
      following limitations shall apply to all purchases of Common Stock in the
      Offerings:

     

    (a)    The
      aggregate amount of outstanding Common Stock owned or controlled by persons
      other than the MHC at the close of the Offerings shall be less than 50% of
      the
      Holding Company’s total outstanding Common Stock.

     

    (b)    Except
      in
      the case of Tax-Qualified Employee Stock Benefit Plans in the aggregate, as
      set
      forth in Section 10(e) hereof, and in addition to the other restrictions and
      limitations set forth herein, no Person may subscribe for or purchase more
      than
      $100,000 of Common Stock in the Offerings and no Person together with any
      Associates or Persons otherwise Acting in Concert may, directly or indirectly,
      subscribe for or purchase more than $150,000 of Common Stock in the
      Offerings.

    

    (c)    No
      Person
      may purchase fewer than 25 shares of Common Stock in the Offerings, to the
      extent such shares are available; provided, however, that if the Purchase Price
      is greater than $20.00 per share, such minimum number of shares shall be
      adjusted so that the aggregate Purchase Price for such minimum shares will
      not
      exceed $500.00. 

     

    (d)    The
      aggregate amount of Common Stock acquired in the Offerings by any
      Non-Tax-Qualified Employee Stock Benefit Plan or any Management Person and
      his
      or her Associates, exclusive of any Common Stock acquired by such plan or
      Management Person and his or her Associates in the secondary market, shall
      not
      exceed 4.9% of (i) the outstanding shares of Common Stock at the conclusion
      of
      the Stock Issuance or (ii) the stockholders’ equity of the Holding Company at
      the conclusion of the Stock Issuance. In calculating the number of shares held
      by any Management Person and his or her Associates under this paragraph, shares
      held by any Tax-Qualified Employee Stock Benefit Plan or Non-Tax-Qualified
      Employee Stock Benefit Plan of the Holding Company or the Bank that are
      attributable to such Person shall not be counted.

    

    (e)    The
      aggregate amount of Common Stock acquired in the Offerings by any one or more
      Tax-Qualified Employee Stock Benefit Plans, exclusive of any shares of Common
      Stock acquired by such plans in the secondary market, shall not exceed 4.9%
      of
      (i) the outstanding shares of Common Stock at the conclusion of the Stock
      Issuance or (ii) the stockholders’ equity of the Holding Company at the
      conclusion of the Stock Issuance.

    

    (f)    The
      aggregate amount of Common Stock acquired in the Offerings by all stock benefit
      plans of the Holding Company or the Bank, other than employee stock ownership
      plans, shall not exceed 25% of the outstanding common stock of the Holding
      Company held by persons other than the MHC.

    

    (g)    The
      aggregate amount of Common Stock acquired in the Offerings by all
      Non-Tax-Qualified Employee Stock Benefit Plans or Management Persons and their
      Associates, exclusive of any Common Stock acquired by such plans or Management
      Persons and their Associates in the secondary market, shall not exceed 34%
      of
      (i) the outstanding shares of Common Stock held by persons other than the MHC
      at
      the conclusion of the Offerings or (ii) of the stockholders’ equity of the
      Holding Company held by persons other than the MHC at the conclusion of the
      Offerings. In calculating the number of shares held by Management Persons and
      their Associates under this paragraph, shares held by any Tax-Qualified Employee
      Stock Benefit Plan or Non-Tax-Qualified Employee Stock Benefit Plan that are
      attributable to such persons shall not be counted.

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    (h)    For
      purposes of the foregoing limitations and the determination of Subscription
      Rights, (i) directors, Officers and employees of the MHC, the Holding Company,
      the Bank or their subsidiaries shall not be deemed to be Associates or a group
      Acting in Concert solely as a result of their capacities as such, (ii) shares
      purchased by Tax-Qualified Employee Stock Benefit Plans shall not be
      attributable to the individual trustees or beneficiaries of any such plan for
      purposes of determining compliance with the limitations set forth in Section
      10(b) hereof, and (iii) shares purchased by a Tax-Qualified Employee Stock
      Benefit Plan pursuant to instructions of an individual in an account in such
      plan in which the individual has the right to direct the investment, including
      any plan of the Bank qualified under Section 401(k) of the Code, shall be
      aggregated and included in that individual’s purchases and not attributed to the
      Tax-Qualified Employee Stock Benefit Plan. 

    

    (i)    Subject
      to any required regulatory approval and the requirements of applicable laws
      and
      regulations, but without the resolicitation of subscribers, the Holding Company
      may increase or decrease any of the individual or aggregate purchase limitations
      set forth herein to a percentage which does not exceed 5% of the total offering
      of shares of Common Stock in the Offerings whether prior to, during or after
      the
      Subscription Offering, Community Offering and/or Syndicated Community Offering.
      If an individual purchase limitation is increased after commencement of the
      Subscription Offering or any other offering, the Holding Company shall permit
      any Person who subscribed for the maximum number of shares of Common Stock
      to
      purchase an additional number of shares, so that such Person shall be permitted
      to subscribe for the then maximum number of shares permitted to be subscribed
      for by such Person, subject to the rights and preferences of any Person who
      has
      priority Subscription Rights. If any of the individual or aggregate purchase
      limitations are decreased after commencement of the Subscription Offering or
      any
      other offering, the orders of any Person who subscribed for more than the new
      purchase limitation shall be decreased by the minimum amount necessary so that
      such Person shall be in compliance with the then maximum number of shares
      permitted to be subscribed for by such Person. In the event that the maximum
      purchase limitation is increased to 5% of the shares sold in the Offerings,
      such
      limitation may be further increased to 9.99%, provided that orders for Common
      Stock exceeding 5% of the shares of Common Stock sold in the Offerings shall
      not
      exceed in the aggregate 10% of the total shares of Common Stock sold in the
      Offerings.

    

    (j)    The
      Holding Company shall have the right to take all such action as it may, in
      its
      sole discretion, deem necessary, appropriate or advisable to monitor and enforce
      the terms, conditions, limitations and restrictions contained in this Section
      10
      and elsewhere in this Plan and the terms, conditions and representations
      contained in the Order Form, including, but not limited to, the absolute right
      (subject only to any necessary regulatory approvals or concurrences) to reject,
      limit or revoke acceptance of any subscription or order and to delay, terminate
      or refuse to consummate any sale of Common Stock that it believes might violate,
      or is designed to, or is any part of a plan to, evade or circumvent such terms,
      conditions, limitations, restrictions and representations. Any such action
      shall
      be final, conclusive and binding on all persons, and the MHC, the Holding
      Company, the Bank and their respective Boards shall be free from any liability
      to any Person on account of any such action. 

    

    
      	
              11.
                

            	
              TIMING
                OF SUBSCRIPTION OFFERING; MANNER OF EXERCISING
                SUBSCRIPTION RIGHTS AND ORDER FORMS.

            

    

    

    (a)    The
      Offerings shall be conducted in compliance with 12 C.F.R. part 563g and, to
      the
      extent applicable, Form OC.

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    (b)    The
      exact
      timing of the commencement of the Subscription Offering shall be determined
      by
      the Holding Company in consultation with the Independent Appraiser and any
      financial or advisory or investment banking firm retained by it in connection
      with the Stock Issuance. The Holding Company may consider a number of factors,
      including, but not limited to, its current and projected future earnings, local
      and national economic conditions, and the prevailing market for stocks in
      general and stocks of financial institutions in particular. The Holding Company
      shall have the right to withdraw, terminate, suspend, delay, revoke or modify
      any such Subscription Offering, at any time and from time to time, as it in
      its
      sole discretion may determine, without liability to any Person, subject to
      compliance with applicable securities laws and any necessary regulatory approval
      or concurrence. 

    

    (c)    Promptly
      after the SEC has declared the Registration Statement, which includes the
      Prospectus, effective and all required regulatory approvals have been obtained,
      the Holding Company shall, distribute or make available the Prospectus, together
      with Order Forms for the purchase of Common Stock, to all Participants for
      the
      purpose of enabling them to exercise their respective Subscription Rights,
      subject to Section 13 hereof.

    

    (d)    A
      single
      Order Form for all Deposit Accounts maintained with the Bank by any Eligible
      Account Holder, Supplemental Eligible Account Holder or Other Member may be
      furnished, irrespective of the number of Deposit Accounts maintained with the
      Bank on the Eligibility Record Date, the Supplemental Eligibility Record Date
      or
      the date for determining Other Members, respectively. No person holding a
      Subscription Right may exceed any otherwise applicable purchase limitation
      by
      submitting multiple orders for Common Stock. Multiple orders are subject to
      adjustment, as appropriate, on a pro rata basis and deposit balances will be
      divided equally among such orders in allocating shares in the event of an
      oversubscription.

    

    (e)    The
      recipient of an Order Form shall have no less than 20 days and no more than
      45
      days from the date of mailing of the Order Form (with the exact termination
      date
      to be set forth on the Order Form) to properly complete and execute the Order
      Form and deliver it to the Holding Company. The Holding Company may extend
      such
      period by such amount of time as it determines is appropriate. Failure of any
      Participant to deliver a properly executed Order Form to the Holding Company,
      along with full payment (or authorization for full payment by withdrawal) for
      the shares of Common Stock subscribed for, within the time limits prescribed,
      shall be deemed a waiver and release by such person of any rights to subscribe
      for shares of Common Stock. Each Participant shall be required to confirm to
      the
      Holding Company by executing an Order Form that such Person has fully complied
      with all of the terms, conditions, limitations and restrictions in the Plan.
      

    

    (f)    The
      Holding Company shall have the absolute right, in its sole discretion and
      without liability to any Participant or other Person, to reject any Order Form,
      including, but not limited to, any Order Form that is (i) improperly completed
      or executed; (ii) not timely received; (iii) not accompanied by the proper
      and
      full payment (or authorization of withdrawal for full payment) or, in the case
      of institutional investors in the Community Offering, not accompanied by an
      irrevocable order together with a legally binding commitment to pay the full
      amount of the purchase price prior to 48 hours before the completion of the
      Offerings; or (iv) submitted by a Person whose representations the Holding
      Company believes to be false or who it otherwise believes, either alone, or
      Acting in Concert with others, is violating, evading or circumventing, or
      intends to violate, evade or circumvent, the terms and conditions of the Plan.
      Furthermore, in the event Order Forms (i) are not delivered and are returned
      to
      the Holding Company by the United States Postal Service or the Holding Company
      is unable to locate the addressee, or (ii) are not mailed pursuant to a “no
      mail” order placed in effect by the account holder, the Subscription Rights of
      the Person to which such rights have been granted will lapse as though such
      Person failed to return the contemplated Order Form within the time period
      specified thereon. The Holding Company may, but will not be required to, waive
      any irregularity on any Order Form or may require the submission of corrected
      Order Forms or the remittance of full payment for shares of Common Stock by
      such
      date as it may specify. The interpretation of the Holding Company of the terms
      and conditions of the Order Forms shall be final and conclusive.

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    
      	
              12.
                

            	
              PAYMENT
                FOR COMMON STOCK.

            

    

    

    (a)    Payment
      for shares of Common Stock subscribed for by Participants in the Subscription
      Offering and payment for shares of Common Stock ordered by Persons in the
      Community Offering shall be equal to the Purchase Price multiplied by the number
      of shares that are being subscribed for or ordered, respectively. Such payment
      may be made in cash, if delivered in person, or by check, bank draft or money
      order at the time the Order Form is delivered to the Holding Company, provided
      that checks will only be accepted subject to collection. The Holding Company,
      in
      its sole and absolute discretion, may also elect to receive payment for shares
      of Common Stock by wire transfer. In addition, the Holding Company may elect
      to
      provide Participants and/or other Persons who have a Deposit Account with the
      Bank the opportunity to pay for shares of Common Stock by authorizing the Bank
      to withdraw from such Deposit Account an amount equal to the aggregate Purchase
      Price of such shares. Payment may also be made by a Participant using funds
      held
      for such Participant’s benefit by a Bank Benefit Plan to the extent that such
      plan allows participants or any related trust established for the benefit of
      such participants to direct that some or all of their individual accounts or
      sub-accounts be invested in Common Stock.

    

    (b)    Notwithstanding
      the above, if the Tax-Qualified Employee Stock Benefit Plans subscribe for
      shares during the Subscription Offering, such plans will not be required to
      pay
      for the shares at the time they subscribe but rather may pay for such shares
      of
      Common Stock subscribed for by such plans upon consummation of the Offerings,
      provided that, in the case of the employee stock ownership plan, there is in
      force from the time of its subscription until the consummation of the Offerings,
      a loan commitment to lend to the employee stock ownership plan, at such time,
      the aggregate price of the shares for which it subscribed.

    

    (c)    If
      a
      Participant or other Person authorizes the Bank to withdraw the amount of the
      aggregate Purchase Price from his or her Deposit Account, the Bank shall have
      the right to make such withdrawal or to freeze funds equal to the aggregate
      Purchase Price upon receipt of the Order Form. Notwithstanding any regulatory
      provisions regarding penalties for early withdrawals from certificate accounts,
      the Bank may allow payment by means of withdrawal from certificate accounts
      without the assessment of such penalties. In the case of an early withdrawal
      of
      only a portion of such account, the certificate evidencing such account shall
      be
      canceled if any applicable minimum balance requirement ceases to be met. In
      such
      case, the remaining balance will earn interest at the regular passbook rate.
      However, where any applicable minimum balance is maintained in such certificate
      account, the rate of return on the balance of the certificate account shall
      remain the same as prior to such early withdrawal. This waiver of the early
      withdrawal penalty applies only to withdrawals made in connection with the
      purchase of Common Stock and is entirely within the discretion of the Holding
      Company and the Bank. 

    

    (d)    The
      subscription funds will be held by the Bank or, in the Bank’s discretion, in an
      escrow account at an unaffiliated financial institution. The Holding Company
      shall pay interest, at not less than the Bank’s passbook rate, for all amounts
      paid in cash, by check, bank draft or money order to purchase shares of Common
      Stock in the Subscription Offering and the Community Offering from the date
      payment is received until the date the Offerings are completed or terminated.
      

    

    (e)    The
      Holding Company will not offer or sell any of the Common Stock proposed to
      be
      issued to any Person whose purchase would be financed by funds loaned, directly
      or indirectly, to the Person by the Bank. 

    

    (f)    Each
      share of Common Stock shall be non-assessable upon payment in full of the
      Purchase Price. 

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    
      	
              13.
                

            	
              ACCOUNT
HOLDERS
                IN NONQUALIFIED STATES OR FOREIGN
                COUNTRIES. 

            

    

    

    The
      Holding Company shall make reasonable efforts to comply with the securities
      laws
      of all jurisdictions in the United States in which Participants reside. However,
      the Holding Company may elect that no Participant will be offered or receive
      any
      Common Stock under the Plan if such Participant resides in a foreign country
      or
      resides in a jurisdiction of the United States with respect to which any of
      the
      following apply: (a) there are few Participants otherwise eligible to subscribe
      for shares under this Plan who reside in such jurisdiction; (b) the granting
      of
      Subscription Rights or the offer or sale of shares of Common Stock to such
      Participants would require any of the Holding Company or the Bank or their
      respective directors and Officers, under the laws of such jurisdiction, to
      register as a broker-dealer, salesman or selling agent or to register or
      otherwise qualify the Common Stock for sale in such jurisdiction, or any of
      the
      Holding Company or the Bank would be required to qualify as a foreign
      corporation or file a consent to service of process in such jurisdiction; or
      (c)
      such registration, qualification or filing in the judgment of the Holding
      Company would be impracticable or unduly burdensome for reasons of cost or
      otherwise. 

    

    
      	
              14.
                

            	
              REQUIREMENTS
                FOLLOWING THE STOCK ISSUANCE FOR REGISTRATION,
                MARKET MAKING AND STOCK EXCHANGE LISTING.
                

            

    

    

    In
      connection with the Stock Issuance, the Holding Company shall register the
      Common Stock pursuant to Section 12 of the Securities Exchange Act of 1934,
      as
      amended, and shall undertake not to deregister such stock for a period of three
      years thereafter. The Holding Company also shall use its best efforts to (i)
      encourage and assist a market maker to establish and maintain a market for
      the
      Common Stock, and (ii) list the Common Stock on a national or regional
      securities exchange or to have quotations for such stock disseminated on the
      Nasdaq Stock Market. 

     

    
      	15.	
              COMPLETION
                OF THE STOCK
                OFFERING.

            

    

    

    The
      Offerings will be terminated if not completed within 90 days of the date of
      approval of the Plan by the OTS, unless an extension is approved by the
      OTS.

    

    
      	
              16.

            	
              REQUIREMENTS
                FOR STOCK PURCHASES BY DIRECTORS AND OFFICERS
                FOLLOWING THE STOCK
                ISSUANCE.

            

    

    

    For
      a
      period of three years following the Stock Issuance, the directors and Officers
      of the Holding Company and the Bank and their Associates may not purchase Common
      Stock without the prior written approval of the OTS except from a broker-dealer
      registered with the SEC. This prohibition shall not apply, however, to (i)
      a
      negotiated transaction involving more than 1% of the outstanding Common Stock,
      and (ii) purchases of stock made by and held by any Tax-Qualified Employee
      Stock
      Benefit Plan (and purchases of stock made by and held by any Non-Tax-Qualified
      Employee Stock Benefit Plan following the receipt of shareholder approval of
      such plan) even if such Common Stock may be attributable to individual Officers
      or directors and their Associates. The foregoing restriction on purchases of
      Common Stock shall be in addition to any restrictions that may be imposed by
      federal and state securities laws.

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

    
      	
              17.
                

            	
              RESTRICTIONS
                ON TRANSFER OF STOCK.
                

            

    

    

    All
      shares of Common Stock that are purchased by Persons other than directors and
      Officers of the Holding Company or the Bank shall be transferable without
      restriction. Shares of Common Stock purchased by directors and Officers of
      the
      Holding Company or the Bank or their Associates on original issue from the
      Holding Company (by subscription or otherwise) shall be subject to the
      restriction that such shares shall not be sold or otherwise disposed of for
      value for a period of one year following the date of purchase, except for any
      disposition of such shares following the death of the original purchaser. The
      shares of Common Stock issued by the Holding Company to such directors and
      Officers shall bear the following legend giving appropriate notice of such
      one-year restriction: 

    

    
      	 	 	
              “The
                shares of stock evidenced by this Certificate are restricted as to
                transfer for a period of one year from the date of this Certificate
                pursuant to Part 575 of the Rules and Regulations of the Office of
                Thrift
                Supervision. These shares may not be sold during such one-year period
                without a legal opinion of counsel for the Company that said transfer
                is
                permissible under the provisions of applicable law and regulation.
                This
                restrictive legend shall be deemed null and void after one year from
                the
                date of this Certificate.” 

            

    

    

    In
      addition, the Holding Company shall give appropriate instructions to the
      transfer agent for the Holding Company with respect to the applicable
      restrictions relating to the transfer of restricted stock. Any shares issued
      at
      a later date as a stock dividend, stock split or otherwise with respect to
      any
      such restricted stock shall be subject to the same holding period restrictions
      as may then be applicable to such restricted stock. The foregoing restriction
      on
      transfer shall be in addition to any restrictions on transfer that may be
      imposed by federal and state securities laws. 

    

    
      	
              18.
                

            	
              STOCK
                COMPENSATION
                PLANS.

            

    

    

    (a)    The
      Holding Company and the Bank are authorized to adopt Tax-Qualified Employee
      Stock Benefit Plans in connection with the Stock Issuance, including without
      limitation an employee stock ownership plan. 

    

    (b)    Subsequent
      to the Stock Issuance, the Holding Company and the Bank are authorized to adopt
      Non-Tax Qualified Employee Stock Benefit Plans, including without limitation,
      stock option plans and restricted stock plans, provided however that, with
      respect to any such plan, the total number of shares of common stock for which
      options may be granted and the total amount of common stock granted as
      restricted stock must not exceed the limitations set forth in Section 10 hereof.
      In addition, any such plan implemented during the one-year period subsequent
      to
      the date of consummation of the Stock Issuance: (i) shall be disclosed in
      the Prospectus; (ii) in the case of stock option plans and employee
      recognition or grant plans, shall be submitted for approval by the holders
      of
      the Common Stock no earlier than six months following consummation of the Stock
      Issuance; and (iii) shall comply with all other applicable requirements of
      the OTS.

    

    (c)    Existing,
      as well as any newly-created, Tax-Qualified Employee Stock Benefit Plans may
      purchase shares of Common Stock in the Offerings, to the extent permitted by
      the
      terms of such benefit plans and this Plan. 

    

    (d)    The
      Holding Company and the Bank are authorized to enter into employment or
      severance agreements with their executive officers. 

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    
      	
              19.
                

            	
              DIVIDEND
                AND REPURCHASE RESTRICTIONS ON STOCK.
                

            

    

    

    The
      Holding Company may not declare or pay a cash dividend on its Common Stock
      if
      the effect thereof would cause the regulatory capital of the Bank to be reduced
      below the amount required under § 567.2 of the OTS rules and regulations.
      Otherwise, the Holding Company may declare dividends or make other capital
      distributions in accordance with § 563b.520 of the OTS rules and
      regulations. Following completion of the Stock Offering, the Holding Company
      may
      repurchase its Common Stock consistent with § 563b.510 and § 563b.515
      of the OTS rules and regulations relating to stock repurchases, as long as
      such
      repurchases do not cause the regulatory capital of the Bank to be reduced below
      the amount required under the OTS rules and regulations. The MHC may from time
      to time purchase Common Stock of the Holding Company. Subject to any notice
      or
      approval requirements of the OTS under the OTS rules and regulations, the MHC
      may waive its right to receive dividends declared by the Holding
      Company.

    

    
      	20.	
              AMENDMENT
OR
                TERMINATION OF THE PLAN.
                

            

    

    

    If
      deemed
      necessary or desirable by the Board of Directors of the Holding Company, this
      Plan may be substantively amended, as a result of comments from regulatory
      authorities or otherwise, at any time prior to the approval of the Plan by
      the
      OTS and at any time thereafter with the concurrence of the OTS. Prior to the
      approval of the Plan by the OTS, this Plan may be terminated by the Board of
      Directors of the Holding Company without approval of the OTS; after approval
      of
      the Plan by the OTS, the Board of Directors may terminate this Plan only with
      the concurrence of the OTS.

    

    
      	
              21.
                

            	
              INTERPRETATION
                OF THE PLAN.
                

            

    

    

    All
      interpretations of this Plan and application of its provisions to particular
      circumstances by a majority of the Board of Directors of the Holding Company
      shall be final, subject to the authority of the OTS.

    

    
      
        
        

      

      
        16Exhibit 10.2

    
      
        

      

    

    Exhibit
      10.2

     

     

     

     

    FORM
      OF

    

    DELANCO
      FEDERAL SAVINGS BANK

    EMPLOYEE
      STOCK OWNERSHIP PLAN

    

    Effective
      as of January 1, 2007

     

     

     

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    DELANCO
      FEDERAL SAVINGS BANK

    EMPLOYEE
      STOCK OWNERSHIP PLAN

    CERTIFICATION

    

    I,
      Robert
      M. Notigan, President and Chief Executive Officer of Delanco Federal Savings
      Bank, hereby certify that the attached Delanco Federal Savings Bank Employee
      Stock Ownership Plan, effective January 1, 2007, was adopted at a duly held
      meeting of the Board of Directors of Delanco Federal Savings Bank.

    

    
      	 	 	 
	 	
              DELANCO
                FEDERAL SAVINGS BANK

            
	 
 	 
 	 
 
	
            	By:  	 
	 	
              
Robert
              M. Notigan
	 	President
              and
              Chief Executive Officer
	 	 
	
            	Date:	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Delanco
      Federal Savings Bank

    Employee
      Stock Ownership Plan

    

    Table
      of Contents

     

    
      	
              Section
                1 - Introduction

            	
              1

            
	 	 
	
              Section
                2 - Definitions

            	
              1

            
	 	 
	
              Section
                3 - Eligibility and Participation

            	
              8

            
	 	 
	
              Section
                4 - Contributions

            	
              10

            
	 	 
	
              Section
                5 - Plan Accounting

            	
              12

            
	 	 
	
              Section
                6 - Vesting and Forfeitures

            	
              18

            
	 	 
	
              Section
                7 - Distributions

            	
              20

            
	 	 
	
              Section
                8 - Voting of Company Stock and Tender
                Offers

            	
              25

            
	 	 
	
              Section
                9 - The Committee and Plan
                Administration

            	
              26

            
	 	 
	
              Section
                10 - Rules Governing Benefit Claims
                

            	
              29

            
	 	 
	
              Section
                11 - The Trust

            	
              30

            
	 	 
	
              Section
                12 - Adoption, Amendment and
                Termination

            	
              31

            
	 	 
	
              Section
                13 - General Provisions

            	
              33

            
	 	 
	
              Section
                14 - Top-Heavy Provisions

            	
              35

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SECTION
      1

    Introduction

    

    Section
      1.01    Nature
      of the Plan.

    

    Effective
      as of January 1, 2007 (the “Effective Date”), Delanco Federal Savings Bank (the
“Bank”) hereby establishes the Delanco Federal Savings Bank Employee Stock
      Ownership Plan (the “Plan”) to enable Eligible Employees (as defined in Section
      2.01(o) of the Plan) to acquire stock ownership interests in Delanco Bancorp,
      Inc. (the “Company”), the holding company of the Bank. The Bank intends this
      Plan to be a tax-qualified stock bonus plan under Section 401(a) of the Internal
      Revenue Code of 1986, as amended (the “Code”), and an employee stock ownership
      plan within the meaning of Section 407(d)(6) of the Employee Retirement Income
      Security Act of 1974, as amended (“ERISA”), and Sections 409 and 4975(e)(7) of
      the Code. The Plan is designed to invest primarily in the common stock of the
      Company, which stock constitutes “qualifying employer securities” within the
      meaning of Section 407(d)(5) of ERISA and Sections 409(l) and 4975(e)(8) of
      the
      Code. Accordingly, the Plan and Trust Agreement (as defined in Section 2.01(mm)
      of the Plan) shall be interpreted and applied in a manner consistent with the
      Bank’s intent for it to be a tax-qualified plan designed to invest primarily in
      qualifying employer securities.

    

    The
      Plan
      reflects certain provisions of the Economic Growth and Tax Relief Reconciliation
      Act of 2001 (“EGTRRA”). The provisions related to EGTRRA are intended as good
      faith compliance with EGTRRA and the guidance issued thereunder. To the extent
      any provision of the Plan was operated according to an effective date earlier
      than as required by law, then such date shall be the effective date with respect
      to that provision of the Plan.

    

    Section
      1.02    Employers
      and Affiliates.

    

    The
      Bank
      and each of its Affiliates (as defined in Section 2.01(c) of the Plan) that,
      with the consent of the Bank, adopt the Plan pursuant to the provisions of
      Section 12.01 of the Plan are collectively referred to as the “Employers” and
      individually as an “Employer.” The Plan shall be treated as a single plan with
      respect to all participating Employers.

    

    SECTION
      2

    Definitions

    

    Section
      2.01    Definitions. 

    

    In
      this
      Plan, whenever the context so indicates, the singular or the plural number
      and
      the masculine or feminine gender shall be deemed to include the other, the
      terms
“he,” “his,” and “him,” shall refer to a Participant or Beneficiary, as the case
      may be, and, except as otherwise provided, or unless the context otherwise
      requires, the capitalized terms shall have the following meanings:

    

    
      
        	(a)	
              	
                “Account”
                  or “Accounts”
                  mean a Participant’s or Beneficiary’s Company Stock Account and/or his
                  Other Investments Account, as the context so
                  requires.

              

      

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      
        
          	(b)	
                	
                  
                    “Acquisition
                      Loan”
                      means a loan or other extension of credit, including an installment
                      obligation to a “party in interest” (as defined in Section 3(14) of ERISA)
                      incurred by the Trustee in connection with the purchase of
                      Company
                      Stock.

                  

                

        

      

       

      
        
          
            	(c)	
                  	
                    
                      
                        “Affiliate”
                          means
                          any corporation, trade or business, which, at the time
                          of reference, is
                          together with the Bank, a member of a controlled group
                          of corporations, a
                          group of trades or businesses (whether or not incorporated)
                          under common
                          control, or an affiliated service group, as described in
                          Sections 414(b),
                          414(c), and 414(m) of the Code, respectively, or any other
                          organization
                          treated as a single employer with the Bank under Section
                          414(o) of the
                          Code; provided, however, that, where the context so requires,
                          the term
                          “Affiliate” shall be construed to give full effect to the provisions
                          of
                          Sections 409(l)(4) and 415(h) of the
                          Code.

                      

                    

                  

          

        

         

        
          
            
              
                	(d)	
                      	
                        
                          
                            “Bank”
                              means Delanco Federal Savings Bank, and any entity
                              that succeeds to the
                              business of Delanco Federal Savings Bank and adopts
                              this Plan in
                              accordance with the provisions of Section 12.02 of
                              the Plan, or by written
                              agreement assumes the obligations of the
                              Plan.

                          

                        

                      

              

            

          

        

        
           

          
            
              
                
                  	(e)	
                        	
                          
                            
                              
                                “Beneficiary”
                                  means
                                  the person(s) entitled to receive benefits under
                                  the Plan following a
                                  Participant’s death, pursuant to Section 7.03 of the
                                  Plan.

                              

                            

                          

                        

                

              

            

          

          
            
               

              
                
                  
                    
                      	(f)	
                            	
                              
                                
                                  
                                    
                                      “Change
                                        in Control” means
                                        any one of the following events occurs:
                                        

                                    

                                  

                                

                              

                            

                    

                  

                

              

               

            

          

        

      

    

    
      	 	
              i.

            	
              Merger:
                The Company merges into or consolidates with another entity, or merges
                another corporation into the Company, and as a result, less than
                a
                majority of the combined voting power of the resulting corporation
                immediately after the merger or consolidation is held by persons
                who were
                stockholders of the Company immediately before the merger or
                consolidation;

            

    

    

    
      	 	
              ii.

            	
              Acquisition
                of Significant Share Ownership:
                There is filed, or is required to be filed, a report on Schedule
                13D or
                another form or schedule (other than Schedule 13G) required under
                Sections
                13(d) or 14(d) of the Securities Exchange Act of 1934, as amended,
                if the
                schedule discloses that the filing person or persons acting in concert
                has
                or have become the beneficial owner of 25% or more of a class of
                the
                Company’s voting securities, but this clause (ii) shall not apply to
                beneficial ownership of Company voting shares held in a fiduciary
                capacity
                by an entity of which the Company directly or indirectly beneficially
                owns
                50% or more of its outstanding voting
                securities;

            

    

    

    
      	 	
              iii.

            	
              Change
                in Board Composition:
                During any period of two consecutive years, individuals who constitute
                the
                Company’s Board of Directors at the beginning of the two-year period cease
                for any reason to constitute at least a majority of the Company’s Board of
                Directors; provided, however, that for purposes of this clause (iii),
                each
                director who is first elected by the board (or first nominated by
                the
                board for election by the members) by a vote of at least two-thirds
                (2/3)
                of the directors who were directors at the beginning of the two-year
                period shall be deemed to have also been a director at the beginning
                of
                such period; or

            

    

     

    
      
        	 	
                iv.

              	
                Sale
                  of Assets:
                  The Company or the Bank sells to a third party all or substantially
                  all of
                  its assets. 

              

      

       

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    Notwithstanding
      anything in this Agreement to the contrary, in no event shall the conversion
      of
      the Bank’s mutual holding company parent, Delanco MHC, from mutual to stock
      form, i.e., a “second step conversion,” constitute a “Change in Control” for
      purposes of this Agreement.

    

    
      
        
          
            	(g)	
                    “Code”
                      means
                      the Internal Revenue Code of 1986, as
                      amended.

                  

          

        

      

    

     

    
      	
              (h)

            	
              “Committee”
                means
                the individual(s) responsible for the administration of the Plan
                in
                accordance with Section 9 of the
                Plan.

            

    

    

    
      	(i)	
              “Company”
                means Delanco
                Bancorp, Inc. and any entity which succeeds to the business of Delanco
                Bancorp, Inc. 

            

    

    

    
      	(j)	
              “Company
                Stock” means
                shares of the voting common stock or preferred stock, meeting the
                requirements of Section 409 of the Code and Section 407(d)(5) of
                ERISA,
                issued by the Company or its
                Affiliates.

            

    

    

    
      	(k)	
              “Company
                Stock Account” means
                the account established and maintained in the name of each Participant
                or
                Beneficiary to reflect his share of the Trust Fund invested in Company
                Stock.

            

    

    

    
      	(l)	
              “Compensation”
                means
                an Employee’s compensation as reported on Form W-2, as defined under
                Section 3401(a) of the Code and subject to income tax withholding
                at the
                source. Compensation shall also include the amounts of any Employer
                contributions made pursuant to a salary reduction agreement entered
                into
                by the Participant and not includible in the gross income of the
                employee
                under Sections 125, 132(f), 402(e)(3), 402(h), 403(b), 414(h) or
                457 of
                the Code. Compensation shall exclude bonuses, commissions and severance
                pay. A Participant’s Compensation shall not exceed $220,000 (as
                periodically adjusted pursuant to Section 401(a)(17) of the Code).
                If the
                Plan Year for which a Participant’s Compensation is measured is less than
                twelve (12) calendar months, then the amount of Compensation taken
                into
                account for such Plan Year shall be the adjusted amount for such
                Plan
                Year, as prescribed by the Secretary of the Treasury under Section
                401(a)(17) of the Code, multiplied by a fraction, the numerator of
                which
                is the number of months taken into account for such Plan Year and
                the
                denominator of which is twelve (12). In determining the dollar limitation
                hereunder, Compensation received from an Affiliate shall be recognized
                as
                Compensation. 

            

    

    

    
      	(m)	
              “Disability”
                means a physical or mental condition of a Participant resulting from
                bodily injury, disease, or mental disorder which renders the Participant
                incapable of continuing any gainful occupation and which condition
                constitutes total disability under the federal Social Security Act.
                The
                Disability of a Participant shall be determined by the Plan Administrator,
                in its sole discretion.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    
      	
              (n)

            	
              “Effective
                Date”
                means January 1, 2007.

            

    

    

    
      	(o)	
              “Eligible
                Employee”
                means any Employee who is not precluded from participating in the
                Plan by
                reason of the provisions of Section 3.02 of the
                Plan.

            

    

    

    
      	(p)	
              “Employee”
                means
                any person who is actually performing services for the Employer or
                an
                Affiliate in a common-law, employer-employee relationship as determined
                under Sections 31.3121(d)-1, 31.3306(i)-1, or 31.3401(c)-1 of the
                Treasury
                Regulations and any “Leased Employee” as defined in Section 3.02(b) of
                this Plan. 

            

    

    

    
      	(q)	
              “Employer”
                or
                “Employers”
                means
                the Bank and any of its Affiliates that adopt the Plan in accordance
                with
                the provisions of Section 12.01 of the Plan, and any entity which
                succeeds
                to the business of the Bank or its Affiliates and which adopts the
                Plan in
                accordance with the provisions of Section 12.02 of the Plan, or by
                written
                agreement assumes the obligations under the
                Plan.

            

    

    

    
      	(r)	
              “Entry
                Date” means
                the January 1st
                or
                July 1st
                coinciding with or next following the date the Employee satisfies
                the
                requirements for participation under Section 3.01 of the
                Plan.

            

    

    

    
      	(s)	
              “ERISA”
                means
                the Employee Retirement Income Security Act of 1974, as
                amended.

            

    

    

    
      	(t)	
              “Exchange
                Act” means
                the Securities Exchange Act of 1934, as
                amended.

            

    

    

    
      	(u)	
              “Financed
                Shares” means
                shares of Company Stock acquired by the Trustee with the proceeds
                of an
                Acquisition Loan, which shall constitute “qualifying employer securities”
                under Section 409(l) of the Code and any shares of Company Stock
                received
                upon conversion or exchange of such
                shares.

            

    

    

    
      	(v)	
              “Highly
                Compensated Employee” means
                an Employee who, for a particular Plan Year, satisfies one of the
                following conditions:

            

    

    

    
      	
            	(i)	
              was
                a “5-percent owner” (as defined in Section 414(q)(2) of the Code) during
                the year or the preceding year, or

            

    

     

    
      
        	
              	(ii)	
                
                  for
                    the preceding year, had “compensation” (as defined in Section 414(q)(4) of
                    the Code) from the Bank and its Affiliates exceeding the limit
                    in Section
                    414(q)(1) of the Code ($95,000 for Plan Years beginning January
                    1,
                    2006).

                

              

      

       

    

    
      
        
          	
                  (w)

                	
                  “Hours
                    of Service” means:

                

        

      

    

     

    
      
        	
              	(i)	
                
                  Each
                    hour for which an Employee is paid, or entitled to payment, for
                    performing
                    duties for the Employer during the applicable computation
                    period.

                

              

      

      
         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

           

          
            
              
                	
                      	(ii)	
                        
                          
                            Each
                              hour for which an Employee is paid, or entitled to
                              payment, for a period
                              during which no duties are performed (irrespective
                              of whether the
                              employment relationship has terminated) due to vacation,
                              holiday, illness,
                              incapacity (including disability), layoff, jury duty,
                              military duty or
                              leave of absence. Notwithstanding the preceding sentence,
                              no credit shall
                              be given to the Employee
                              for:

                          

                        

                      

              

              
                 

              

            

          

        

      

    

    
      	
            	
              (A)

            	
              more
                than 501 hours under this clause (ii) because of any single continuous
                period in which the Employee performs no duties (whether or not such
                period occurs in a single computation
                period);

            

    

    

    
      	
            	(B)	
              an
                hour for which the Employee is directly or indirectly paid, or entitled
                to
                payment, because of a period in which no duties are performed if
                such
                payment is made or due under a plan maintained solely for the purpose
                of
                complying with applicable worker’s or workmen’s compensation,
                unemployment, or disability insurance laws; or

            

    

    

    
      	
            	(C)	
              an
                hour or a payment which solely reimburses the Employee for medical
                or
                medically-related expenses incurred by the
                Employee.

            

    

     

    
      
        
          
            	
                  	(iii)	
                    
                      
                        
                          Each
                            hour for which back pay, irrespective of mitigation of
                            damages, is either
                            awarded or agreed to by the Employer; provided, however,
                            that hours
                            credited under either clause (i) or (ii) above shall
                            not also be credited
                            under this clause (iii). Crediting of hours for back
                            pay awarded or agreed
                            to with respect to periods described in clause (ii) above
                            will be subject
                            to the limitations set forth in that
                            clause.

                        

                      

                    

                  

          

           

        

      

    

    The
      crediting of Hours of Service shall be determined by the Committee in accordance
      with the rules set forth in Section 2530.200b-2 of the regulations prescribed
      by
      the Department of Labor, which rules shall be consistently applied with respect
      to all Employees within the same job classification. If an Employer finds it
      impracticable to count actual Hours of Service for any class or group of
      non-hourly Employees, each Employee in that class or group shall be credited
      with 45 Hours of Service for each weekly period in which he has at least one
      Hour of Service. However, an Employee shall be credited with Hours of Service
      only for his normal working hours during a paid absence. Hours of Service shall
      be credited for employment with an Affiliate.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    For
      purposes of determining whether an Employee has
      incurred a One Year Break in Service and for vesting and participation purposes,
      if an Employee begins a maternity/paternity leave of absence described in
      Section 411(a)(6)(E)(i) of the Code, his Hours of Service shall include the
      Hours of Service that would have been credited to him if he had not been so
      absent (or 45 Hours of Service for each week of such absence if the actual
      Hours
      of Service cannot be determined). An Employee shall be credited for such Hours
      of Service (up to a maximum of 501 Hours of Service) in the Plan Year in which
      his absence begins (if such crediting will prevent him from incurring a One
      Year
      Break in Service in such Plan Year) or, in all other cases, in the following
      Plan Year. An absence from employment for maternity or paternity reasons means
      an absence:

     

    
      	
            	(i)	
              by
                reason of pregnancy of the
                Employee,

            

    

     

    
      
        	
              	(ii)	
                by
                  reason of the birth of a child of the
                  Employee,

              

      

      
         

        
          
            	
                  	(iii)	
                    by
                      reason of the placement of a child with the Employee in connection
                      with
                      the adoption of such child by such Employee,
                      or

                  

          

          
             

            
              
                	
                      	(iv)	
                        for
                          purposes of caring for such child for a period beginning
                          immediately
                          following such birth or
                          placement.

                      

              

            

          

        

      

    

    

    
      
        
          	(y)	
                  “Loan
                    Suspense Account”
                    means that portion of the Trust Fund consisting of Company Stock
                    acquired
                    with an Acquisition Loan which has not yet been allocated to
                    the
                    Participants’ Accounts.

                

        

      

    

    

    
      
        
          	(z)	
                  “Normal
                    Retirement Age” means
                    attainment of age 65.

                

        

      

    

     

    
      	(aa)	
              “Normal
                Retirement Date”
                means the first day of the month coincident with or next following
                the
                Participant’s attainment of Normal Retirement
                Age.

            

    

    

    
      	
              (bb)

            	
              “One
                Year Break in Service”
                means a twelve (12) consecutive month period during which the Participant
                does not complete more than 1,000 Hours of
                Service.

            

    

    

    
      
        
          	(cc)	
                  “Other
                    Investments Account”
                    means the account established and maintained in the name of each
                    Participant or Beneficiary to reflect his share of the Trust
                    Fund, other
                    than Company Stock.

                

        

      

    

    

    
      
        
          	(dd)	
                  “Participant”
                    means any Eligible Employee who has become a Participant in accordance
                    with Section 3.01 of the Plan or any other person with an Account
                    balance
                    under the Plan. 

                

        

      

    

    

    
      
        
          	(ee)	
                  “Plan”
                    means
                    the Delanco Federal Savings Bank Employee Stock Ownership Plan,
                    as amended
                    from time to time.

                

        

      

    

    

    
      
        
          	(ff)	
                  “Plan
                    Year” means
                    the calendar year.

                

        

      

    

    

    
      
        
          	(gg)	
                  “Recognized
                    Absence” means
                    a period for which:

                

        

      

    

    

    
      
        	
              	(i)	
                an
                  Employer grants an Employee a leave of absence for a limited period
                  of
                  time, but only if an Employer grants such leaves of absence on
                  a
                  nondiscriminatory basis to all Eligible Employees;
                  or

              

      

    

    

    
      
        	
              	(ii)	
                an
                  Employee is temporarily laid off by an Employer because of a change
                  in the
                  business conditions of the Employer;
                  or

              

      

    

    
       

      
        	 	
                (iii)

              	
                an
                  Employee is on active military duty, but only to the extent that
                  his
                  employment rights are protected by the Military Selective Service
                  Act of
                  1967 and the Uniformed Services Employment and Reemployment Rights
                  Act of
                  1994. 

              

      

       

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      
        
          	(hh)	
                  “Retirement
                    Date” means
                    a Participant’s Normal Retirement
                    Date.

                

        

      

    

    

    
      
        
          	(ii)	
                  “Service” means
                    employment with the Bank or an
                    Affiliate.

                

        

      

    

    

    
      
        
          	(jj)	
                  “Termination
                    of Service” means
                    the earlier of (a) the date on which an Employee’s Service is terminated
                    by reason of his resignation, retirement, discharge, death or
                    Disability
                    or (b) the first anniversary of the date on which such Employee’s service
                    is terminated for disability of a short-term nature or any other
                    reason.
                    Service in the Armed Forces of the United States shall not constitute
                    a
                    Termination of Service but shall be considered to be a period
                    of
                    employment by the Employer provided (i) such military service
                    is caused by
                    war or other emergency or the Employee is required to serve under
                    the laws
                    of conscription in time of peace, (ii) the Employee returns to
                    employment
                    with the Employer within six (6) months following discharge from
                    such
                    military service and (iii) such Employee is reemployed by the
                    Employer at
                    a time when the Employee had a right to reemployment at his former
                    position or substantially similar position upon separation from
                    such
                    military duty in accordance with seniority rights as protected
                    under the
                    laws of the United States. A leave of absence granted to an Employee
                    by
                    the Employer shall not constitute a Termination of Service provided
                    that
                    the Participant returns to the active service of the Employer
                    at the
                    expiration of any such period for which leave has been granted.
                    Notwithstanding the foregoing, an Employee who is absent from
                    service with
                    the Employer beyond the first anniversary of the first date of
                    his absence
                    for maternity or paternity reasons set forth in Section 2.01
                    of the Plan
                    shall incur a Termination of Service for purposes of the Plan
                    on the
                    second anniversary of the date of such
                    absence.

                

        

      

    

    

    
      
        
          	(kk)	
                  “Treasury
                    Regulations” mean
                    the regulations promulgated by the Department of the Treasury
                    under the
                    Code. 

                

        

      

    

    

    
      
        
          	(ll)	
                  “Trust”
                    means
                    the Delanco Federal Savings Bank Employee Stock Ownership Plan
                    Trust
                    created in connection with the establishment of the
                    Plan.

                

        

      

    

    

    
      
        
          	(mm)	
                  “Trust
                    Agreement” means
                    the trust agreement establishing the
                    Trust.

                

        

      

    

    

    
      
        
          	(nn)	
                  “Trust
                    Fund” means
                    the assets held in the Trust for the benefit of Participants
                    and their
                    Beneficiaries.

                

        

      

    

    

    
      
        
          	(oo)	
                  “Trustee”
                    means
                    the trustee or trustees from time to time in office under the
                    Trust
                    Agreement.

                

        

      

    

    

    
      
        
          	(pp)	
                  “Valuation
                    Date” means
                    the last day of the Plan Year and each other date as of which
                    the
                    Committee shall determine the investment experience of the Trust
                    Fund and
                    adjust Participants’ Accounts
                    accordingly.

                

        

      

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      
        
          	(qq)	
                  “Valuation
                    Period” means
                    the period following a Valuation Date and ending with the next
                    Valuation
                    Date.

                

        

      

    

    

    
      	(rr)	
              “Year
                of Service”
                shall mean a Plan Year in which an Employee is credited with at least
                1,000 Hours of Service. 

            

    

    

    SECTION
      3

    Eligibility
      and Participation

    

    Section
      3.01    
Participation.

    

    
      	(a)	
              All
                Eligible Employees who participate in the Delanco Federal Savings
                Bank
                Cash/Deferred Profit Sharing Plan as of the close of the Company’s stock
                offering (the “Offering Closing Date”) shall enter the Plan and become
                Participants as of the later of the Effective Date or their date
                of
                hire.

            

    

    

    
      	(b)	
              An
                Eligible Employee who is first employed by an Employer after the
                Offering
                Closing Date shall become a Participant in the Plan upon satisfying
                the
                following requirements:

            

    

    

    
      	
            	(i)	
              The
                Eligible Employee is at least 21 years of age;
                and

            

    

    

    
      	
            	(ii)	
              completes
                one Year of Service.

            

    

    

    
      	(c)	
              An
                Eligible Employee who has satisfied the eligibility requirements
                of
                Section 3.01(b) shall enter the Plan and become a Participant on
                the Entry
                Date coincident with or next following the date he satisfies such
                requirements.

            

    

    

    Section
      3.02    
Certain
      Employees Ineligible.

    

    The
      following Employees are ineligible to participate in the Plan:

    

    
      	
              (a)

            	
              Employees
                covered by a collective bargaining agreement between the Employer
                and the
                Employee’s collective bargaining representative
                if:

            

    

    

    
      	
            	
              (i)

            	
              retirement
                benefits have been the subject of good faith bargaining between the
                Employer and the representative,
                and

            

    

    

    
      	 	
              (ii)

            	
              the
                collective bargaining agreement does not expressly provide that Employees
                of such unit be covered under the Plan;

            

    

    

    
      	
              (b)

            	
              Employees
                who are nonresident aliens and who receive no earned income from
                an
                Employer which constitutes income from sources within the United
                States;
                and

            

    

    
       

      
        	(c)	
                Employees
                  of an Affiliate of the Bank that has not adopted the Plan pursuant
                  to
                  Sections 12.01 or 12.02 of the
                  Plan.

              

      

       

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    Section
      3.03    
Transfer
      to and from Eligible Employment.

    

    
      	(a)	
              If
                an Employee ineligible to participate in the Plan by reason of Section
                3.02 of the Plan transfers to employment as an Eligible Employee,
                he shall
                enter the Plan as of the later of:

            

    

    

    
      	
            	(i)	
              the
                first Entry Date after the date of transfer, or

            

    

    

    
      	 	
              (ii)

            	
              the
                first Entry Date on which he could have become a Participant pursuant
                to
                Section 3.01 of the Plan.

            

    

    

    
      	
              (b)
                

            	
              If
                a Participant transfers to an employment position that makes him
                ineligible to participate in the Plan as of the date of such transfer,
                he
                shall cease active participation in the Plan as of such date and
                his
                transfer shall be treated for all purposes under the Plan in the
                same
                manner as any other termination of
                Service.

            

    

    

    Section
      3.04    
Participation
      after Reemployment.

    

    
      	
              (a)

            	
              If
                an Employee incurs a One Year Break in Service prior to satisfying
                the
                eligibility requirements of Section 3.01 of the Plan, Service prior
                to
                such One Year Break in Service shall be disregarded and the Employee
                must
                satisfy the eligibility requirements of Section 3.01 as a new
                Employee.

            

    

    

    
      	
              (b)

            	
              If
                an Employee incurs a One Year Break in Service after satisfying the
                eligibility requirements of Section 3.01 of the Plan and again performs
                an
                Hour of Service, the Employee shall receive credit for Service prior
                to
                his One Year Break in Service and shall be eligible to participate
                in the
                Plan immediately upon reemployment, provided the Employee is not
                excluded
                from participation under the provisions of Section 3.02 of the
                Plan.

            

    

    

    Section
      3.05    
Participation
      Not Guarantee of Employment.

    

    Participation
      in the Plan does not constitute a guarantee or contract of employment and will
      not give any Employee the right to be retained in the employ of the Bank or
      any
      of its Affiliates nor any right or claim to any benefit under the terms of
      the
      Plan unless such right or claim has specifically accrued under the
      Plan.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    SECTION
      4

    Contributions

    

    Section
      4.01    
Employer
      Contributions.

    

    
      	
              (a)

            	
              Discretionary
                Contributions.
                Each Plan Year, each Employer, in its discretion, may make a contribution
                to the Trust. Each Employer making a contribution for any Plan Year
                under
                this Section 4.01(a) will contribute to the Trustee cash equal to,
                or
                Company Stock or other property having an aggregate fair market value
                equal to, such amount as the Board of Directors of the Employer shall
                determine by resolution. Notwithstanding the Employer’s discretion with
                respect to the medium of contribution, an Employer shall not make
                a
                contribution in any medium which would make such contribution a prohibited
                transaction (for which no exemption is provided) under Section 406
                of
                ERISA or Section 4975 of the Code.

            

    

    

    
      	
              (b)

            	
              Employer
                Contributions for Acquisition Loans. Each
                Plan Year, the Employers shall, subject to any regulatory prohibitions,
                contribute an amount of cash sufficient to enable the Trustee to
                discharge
                any indebtedness incurred with respect to an Acquisition Loan pursuant
                to
                the terms of the Acquisition Loan. The Employers’ obligation to make
                contributions under this Section 4.01(b) shall be reduced to the
                extent of
                any investment earnings attributable to such contributions, any cash
                dividends paid with respect to Company Stock held by the Trustee
                in the
                Loan Suspense Account and earnings on said dividends. If there is
                more
                than one Acquisition Loan, the Employers shall designate the one
                to which
                any contribution pursuant to this Section 4.01(b) is to be applied.
                

            

    

    

    Section
      4.02    
Limitations
      on Contributions.

    

    In
      no
      event shall an Employer’s contribution(s) made under Section 4.01 of the Plan
      for any Plan Year exceed the lesser of:

    

    
      	
              (a)

            	
              The
                maximum amount deductible under Section 404 of the Code by that Employer
                as an expense for Federal income tax purposes;
                and

            

    

    

    
      	
              (b)

            	
              The
                maximum amount which can be credited for that Plan Year in accordance
                with
                the allocation limitation provisions of Section 5.05 of the Plan.
                

            

    

    

    Section
      4.03     Acquisition
      Loans.

    

    The
      Trustee may incur Acquisition Loans from time to time to finance the acquisition
      of Company Stock for the Trust or to repay a prior Acquisition Loan. An
      Acquisition Loan shall be for a specific term, shall bear a reasonable rate
      of
      interest, shall not be payable in demand, except in the event of default, and
      shall be primarily for the benefit of Participants and Beneficiaries of the
      Plan. An Acquisition Loan may be secured by a collateral pledge of the Financed
      Shares so acquired and any other Plan assets which are permissible securities
      within the provisions of Section 54.4975-7(b) of the Treasury Regulations.
      No
      other assets of the Plan or Trust may be pledged as collateral for an
      Acquisition Loan, and no lender shall have recourse against any other Trust
      assets. Any pledge of Financed Shares must provide for the release of shares
      so
      pledged on a basis equal to the principal and interest (or if the requirements
      of Section 54.4975-7(b)(8)(ii) of the Treasury Regulations are met and the
      Employer so elects, principal payments only), paid by the Trustee on the
      Acquisition Loan. The released Financed Shares shall be allocated to
      Participants’ Accounts in accordance with the provisions of Sections 5.04 or
      5.08 of the Plan, whichever is applicable. Payment of principal and interest
      on
      any Acquisition Loan shall be made by the Trustee only from the Employer
      contributions paid in cash to enable the Trustee to repay such loan in
      accordance with Section 4.01(b) of the Plan, from earnings attributable to
      such
      contributions, and any cash dividends received by the Trustee on Financed Shares
      acquired with the proceeds of the Acquisition Loan (including contributions,
      earnings and dividends received during or prior to the year of repayment less
      such payments in prior years), whether or not allocated. Financed Shares shall
      initially be credited to the Loan Suspense Account and shall be transferred
      for
      allocation to the Company Stock Accounts of Participants only as payments of
      principal and interest (or, if the requirements of Section 54.4975-7(b)(8)(ii)
      of the Treasury Regulations are met and the Employer so elects, principal
      payments only), on the Acquisition Loan are made by the Trustee. The number
      of
      Financed Shares to be released from the Loan Suspense Account for allocation
      to
      Participants’ Company Stock Accounts for each Plan Year shall be based on the
      ratio that the payments of principal and interest (or, if the requirements
      of
      Section 54.4975-7(b)(8)(ii) of the Treasury Regulations are met and the Employer
      so elects, principal payments only), on the Acquisition Loan for that Plan
      Year
      bears to the sum of the payments of principal and interest on the Acquisition
      Loan for that Plan Year plus the total remaining payment of principal and
      interest projected (or, if the requirements of Section 54.4975-7(b)(8)(ii)
      of
      the Treasury Regulations are met and the Employer so elects, principal payments
      only), on the Acquisition Loan over the duration of the Acquisition Loan
      repayment period, subject to the provisions of Section 5.05 of the
      Plan.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    Section
      4.04    
Conditions
      as to Contributions.

    

    In
      addition to the provisions of Section 12.03 of the Plan for the return of an
      Employer’s contributions in connection with a failure of the Plan to qualify
      initially under the Code, any amount contributed by an Employer due to a good
      faith mistake of fact, or based upon a good faith but erroneous determination
      of
      its deductibility under Section 404 of the Code, shall be returned to the
      Employer within one year after the date on which the Employer originally made
      such contribution, or within one year after its nondeductibility has been
      finally determined. However, the amount to be returned shall be reduced to
      take
      account of any adverse investment experience within the Trust in order that
      the
      balance credited to each Participant Account is not less than it would have
      been
      if the contribution had never been made by the Employer.

    

    Section
      4.05    
Employee
      Contributions.

    

    Employee
      contributions are neither required nor permitted under the Plan.

    

    Section
      4.06    
Rollover
      Contributions.

    

    Rollover
      contributions to the Plan of assets from other tax-qualified retirement plans
      are not permitted under the Plan.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    Section
      4.07    
Trustee-to-Trustee
      Transfers.

    

    Trustee-to-trustee
      transfers of assets from other tax-qualified retirement plans are not permitted
      under the Plan.

    

    SECTION
      5

    Plan
      Accounting

    

    Section
      5.01    
Accounting
      for Allocations.

    

    The
      Committee shall establish the Accounts (and sub-accounts, if deemed necessary)
      for each Participant, and the accounting procedures for the purpose of making
      allocations to Participants’ Accounts as provided for in this Section 5. The
      Committee shall maintain adequate records of the cost basis of shares of Company
      Stock allocated to each Participant’s Company Stock Account. The Committee also
      shall keep separate records of Financed Shares attributable to each Acquisition
      Loan and of contributions made by the Employers (and any earnings thereon)
      made
      for the purpose of enabling the Trustee to repay any Acquisition Loan. From
      time
      to time, the Committee may modify its accounting procedures for the purpose
      of
      achieving equitable and nondiscriminatory allocations among the Accounts of
      Participants, in accordance with the provisions of this Section 5 and the
      applicable requirements of the Code and ERISA. In accordance with Section 9
      of
      the Plan, the Committee may delegate the responsibility for maintaining Accounts
      and records.

    

    Section
      5.02    
Maintenance
      of Participants’ Company Stock Accounts.

    

    As
      of
      each Valuation Date, the Committee shall adjust the Company Stock Account of
      each Participant to reflect activity during the Valuation Period as
      follows:

    

    
      	
              (a)

            	
              First,
                charge to each Participant’s Company Stock Account all distributions and
                payments made to the Participant that have not been previously
                charged;

            

    

    

    
      	
              (b)

            	
              Next,
                credit to each Participant’s Company Stock Account the shares of Company
                Stock, if any, that have been purchased with amounts from the
                Participant’s Other Investments Account, and adjust such Other Investments
                Account in accordance with the provisions of Section 5.03 of the
                Plan;

            

    

    

    
      	
              (c)

            	
              Next,
                credit to each Participant’s Company Stock Account the shares of Company
                Stock representing contributions made by the Employers in the form
                of
                Company Stock and the number of Financed Shares released from the
                Loan
                Suspense Account under Section 4.03 of the Plan that are to be allocated
                and credited as of that date in accordance with the provisions of
                Section
                5.04 of the Plan; and

            

    

    

    
      	
              (d)

            	
              Finally,
                credit to each Participant’s Company Stock Account the shares of Company
                Stock released from the Loan Suspense Account that are to be allocated
                in
                accordance with the provisions of Section 5.09 of the
                Plan.

            

    

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    Section
      5.03    
Maintenance
      of Participants’ Other Investments Accounts.

    

    Except
      as
      otherwise provided for under Section 5.08 of the Plan, as of each Valuation
      Date, the Committee shall adjust the Other Investments Account of each
      Participant to reflect activity during the Valuation Period as
      follows:

    

    
      	
              (a)

            	
              First,
                charge to each Participant’s Other Investments Account all distributions
                and payments made to the Participant that have not previously been
                charged;

            

    

    

    
      	
              (b)

            	
              Next,
                if Company Stock is purchased with assets from a Participant’s Other
                Investments Account, charge the Participant’s Other Investments Account
                accordingly;

            

    

    

    
      	
              (c)

            	
              Next,
                subject to the dividend provisions of Section 5.09 of the Plan, credit
                to
                the Other Investments Account of each Participant any cash dividends
                paid
                to the Trustee on shares of Company Stock held in that Participant’s
                Company Stock Account (as of the record date for such cash dividends)
                and
                dividends paid on shares of Company Stock held in the Loan Suspense
                Account that have not been used to repay any Acquisition Loan. Subject
                to
                the provisions of Section 5.09 of the Plan, cash dividends that have
                not
                been used to repay any Acquisition Loan and have been credited to
                a
                Participant’s Other Investments Account shall be applied by the Trustee to
                purchase shares of Company Stock, which shares shall then be credited
                to
                the Company Stock Account of such Participant. The Participant’s Other
                Investments Account shall then be charged by the amount of cash used
                to
                purchase such Company Stock. In addition, any earnings
                on:

            

    

    

    
      	 	
              (i)

            	
              Participants’
                Other Investments Accounts will be allocated to those Accounts, pro
                rata,
                based on Participants’ Other Investments Account balances as of the first
                day of the Valuation Period, and 

            

    

    

    
      	 	
              (ii)

            	
              the
                Loan Suspense Account, other than dividends used to repay the Acquisition
                Loan, will be allocated to Participants’ Other Investments Accounts, pro
                rata, based on their Other Investments Account balances as of the
                first
                day of the Valuation Period;

            

    

    

    
      	
              (d)

            	
              Next,
                allocate and credit the Employer contributions made pursuant to Section
                4.01(b) of the Plan for the purpose of repaying any Acquisition Loan,
                in
                accordance with Section 5.04 of the Plan. Such amount shall then
                be used
                to repay any Acquisition Loan and such Participant’s Other Investments
                Account shall be charged accordingly; and

            

    

    

    
      	
              (e)

            	
              Finally,
                allocate and credit the Employer contributions (other than amounts
                contributed to repay an Acquisition Loan) that are made in cash (or
                property other than Company Stock) for the Plan Year to the Other
                Investments Account of each Participant in accordance with Section
                5.04 of
                the Plan.

            

    

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    Section
      5.04    
Allocation
      and Crediting of Employer Contributions.

    

    
      	
              (a)

            	
              Except
                as otherwise provided for in Sections 5.08 and 5.09 of the Plan,
                as of the
                Valuation Date for each Plan Year:

            

    

    

    
      	 	
              (i)

            	
              Company
                Stock released from the Loan Suspense Account for that year and shares
                of
                Company Stock contributed directly to the Plan shall be allocated
                and
                credited to each Active Participant’s (as defined in paragraph (b) of this
                Section 5.04) Company Stock Account based on the ratio that each
                Active
                Participant’s Compensation for the Plan Year bears to the aggregate
                Compensation of all Active Participants for the Plan Year, and
                then

            

    

    

    
      	 	
              (ii)

            	
              The
                cash contributions not used to repay an Acquisition Loan and any
                other
                property contributed for that year shall be allocated and credited
                to each
                Active Participant’s Other Investments Account based on the ratio
                determined by comparing each Active Participant’s Compensation for the
                Plan Year to the aggregate Compensation of all Active Participants
                for the
                Plan Year.

            

    

    

    
      	
              (b)

            	
              For
                purposes of this Section 5.04, the term “Active Participant” means those
                Eligible Employees who:

            

    

    

    
      	
            	(i)	
              are
                employed on the last day of the Plan Year and have completed 1,000
                Hours
                of Service during the Plan Year; or

            

    

    

    
      	
            	(ii)	
              terminated
                employment during the Plan Year by reason of death, Disability, or
                attainment of their Normal Retirement Date.

            

    

    

    Section
      5.05    
Limitations
      on Allocations.

    

    
      	
              (a)

            	
              In
                General. Subject
                to the provisions of this Section 5.05, Section 415 of the Code shall
                be
                incorporated by reference into the terms of the Plan. No allocation
                shall
                be made under Section 5.04 of the Plan that would result in a violation
                of
                Section 415 of the Code.

            

    

    

    
      	
              (b)

            	
              Code
                Section 415 Compensation. For
                purposes of this Section 5.05, Compensation shall be adjusted to
                reflect
                the general rule of Section 1.415-2(d) of the Treasury
                Regulations.

            

    

    

    
      	
              (c)

            	
              Limitation
                Year. The
                “limitation year” (within the meaning of Section 415 of the Code) shall be
                the calendar year.

            

    

    

    
      	
              (d)

            	
              Multiple
                Defined Contribution Plans. In
                any case where a Participant also participates in another defined
                contribution plan of the Bank or its Affiliates, the appropriate
                committee
                of such other plan shall first reduce the after-tax contributions
                under
                any such plan, shall then reduce any elective deferrals under any
                such
                plan subject to Section 401(k) of the Code, shall then reduce all
                other
                contributions under any other such plan and, if necessary, shall
                then
                reduce contributions under this
                Plan.

            

    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

       

    

    
      	
              (e)

            	
              Excess
                Allocations. If,
                after applying the allocation provisions under Section 5.04 of the
                Plan,
                allocations under Section 5.04 of the Plan would otherwise result
                in a
                violation of Section 415 of the Code, the Committee shall allocate
                and
                reallocate employer contributions to other Participants in the Plan
                for
                the limitation year or, if such allocation and reallocation causes
                the
                limitations of Section 415 of the Code to be exceeded, shall hold
                excess
                amounts in an unallocated suspense account for allocation in a subsequent
                Plan Year in accordance with Section 1.415-6(b)(6)(i) of the Treasury
                Regulations. Such suspense account, if permitted, will be credited
                before
                any allocation of contributions for subsequent limitation
                years.

            

    

    

    
      	
              (f)
                

            	
              Allocations
                Pursuant to Section 5.08.
                For purposes of this Section 5.05, no amount credited to any Participant’s
                Account pursuant to Section 5.08 of the Plan shall be counted as
                an
                “annual addition” for purposes of Section 415 of the Code. In the event
                any amount cannot be allocated to Affected Participants (as defined
                in
                Section 5.08 of the Plan) under the Plan pursuant to Section 5.08
                of the
                Plan in the year of a Change in Control, the amount which may not
                be so
                allocated in the year of the Change in Control shall be treated in
                accordance with paragraph (e) of this Section 5.05.
                

            

    

    

    Section
      5.06    
Other
      Limitations.

    

    Aside
      from the limitations set forth in Section 5.05 of the Plan, in no event shall
      more than one-third of the Employer contributions to the Plan be allocated
      to
      the Accounts of Highly Compensated Employees. In order to ensure that such
      allocations are not made, the Committee shall, beginning with the Participants
      whose Compensation exceeds the limit then in effect under Section 401(a)(17)
      of
      the Code, reduce the amount of Compensation of such Highly Compensated Employees
      on a pro-rata basis per individual that would otherwise be taken into account
      for purposes of allocating benefits under Section 5.04 of the Plan. If, in
      order
      to satisfy this Section 5.06, any such Participant’s Compensation must be
      reduced to an amount that is lower than the Compensation amount of the next
      highest paid (based on such Participant’s Compensation) Highly Compensated
      Employee (the “breakpoint amount”), then, for purposes of allocating benefits
      under Section 5.04 of the Plan, the Compensation of all concerned Participants
      shall be reduced to an amount not to exceed such breakpoint amount.

    
      

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

    

    Section
      5.07    
Limitations
      as to Certain Section 1042 Transactions.

    

    To
      the
      extent that a shareholder of Company Stock sells qualifying Company Stock to
      the
      Plan and elects (with the consent of the Bank) nonrecognition of gain under
      Section 1042 of the Code, no portion of the Company Stock purchased in such
      nonrecognition transaction (or other dividends or other income attributable
      thereto) may accrue or be allocated during the nonallocation period (the ten
      (10) year period beginning on the later of the date of the sale of the qualified
      Company Stock, or the date of the Plan allocation attributable to the final
      payment of an Acquisition Loan incurred in connection with such sale) for the
      benefit of:

     

    
      	
              (a)

            	
              the
                selling shareholder;

            

    

    

    
      	
              (b)

            	
              the
                spouse, brothers or sisters (whether by the whole or half blood),
                ancestors or lineal descendants of the selling shareholder or descendant
                referred to in (a) above; or

            

    

    

    
      	
              (c)

            	
              any
                other person who owns, after application of Section 318(a) of the
                Code,
                more than twenty-five percent (25%)
                of:

            

    

    

    
      	 	
              (i)

            	
              any
                class of outstanding stock of the Company or any Affiliate,
                or

            

    

    

    
      	 	
              (ii)

            	
              the
                total value of any class of outstanding stock of the Company or any
                Affiliate.

            

    

    

    For
      purposes of this Section 5.07, Section 318(a) of the Code shall be applied
      without regard to the employee trust exception of Section 318(a)(2)(B)(i) of
      the
      Code.

    

    Section
      5.08     Allocations
      Upon Termination Prior to Satisfaction of Acquisition
      Loan.

    

    
      	
              (a)

            	
              Notwithstanding
                any other provision of the Plan, in the event of a Change in Control,
                the
                Plan shall terminate as of the effective date of the Change in Control
                and, as soon as practicable thereafter, the Trustee shall repay in
                full
                any outstanding Acquisition Loan. In connection with such repayment,
                the
                Trustee shall: (i) apply cash, if any, received by the Plan in connection
                with the transaction constituting a Change in Control, with respect
                to the
                unallocated shares of Company Stock acquired with the proceeds of
                the
                Acquisition Loan, and (ii) to the extent additionally required to
                effect
                the repayment of the Acquisition Loan, obtain cash through the sale
                of any
                stock or security received by the Plan in connection with such
                transaction, with respect to such unallocated shares of Company Stock.
                After repayment of the Acquisition Loan, all remaining shares of
                Company
                Stock held in the Loan Suspense Account, all other stock or securities,
                and any cash proceeds from the sale or other disposition of any shares
                of
                Company Stock held in the Loan Suspense Account, shall be allocated
                among
                the Accounts of all Participants who were employed by an Employer
                on the
                date immediately preceding the effective date of the Change in Control.
                Such allocations of shares or cash proceeds shall be credited as
                earnings
                for purposes of Section 5.05 of the Plan and Section 415 of the Code,
                as
                of the effective date of the Change in Control, to the Account of
                each
                Participant who is either in active Service with an Employer, or
                is on a
                Recognized Absence, on the date immediately preceding the effective
                date
                of the Change of Control (each an “Affected Participant”), in proportion
                to the opening balances in their Company Stock Accounts as of the
                first
                day of the current Valuation Period. As of the effective date of
                a Change
                in Control, all Participant Accounts shall be fully vested and
                nonforfeitable.

            

    

    

    
      	
              (b)

            	
              In
                the event of a termination of the Plan in connection with a Change
                in
                Control, this Section 5.08 shall have no force and effect unless
                the price
                paid for the Company Stock in connection with a Change in Control
                is
                greater than the average basis of the unallocated Company Stock held
                in
                the Loan Suspense Account as of the date of the Change in Control.
                

            

    

    

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    Section
      5.09    
Dividends.

    

    
      	
              (a)

            	
              Stock
                Dividends. Dividends
                on Company Stock which are received by the Trustee in the form of
                additional Company Stock shall be retained in the portion of the
                Trust
                Fund consisting of Company Stock, and shall be allocated among the
                Participants’ Accounts and the Loan Suspense Account in accordance with
                their holdings of the Company Stock on which the dividends have been
                paid.

            

    

    

    
      	
              (b)

            	
              Cash
                Dividends on Allocated Shares.
                Dividends on Company Stock credited to Participants’ Accounts which are
                received by the Trustee in the form of cash shall, at the direction
                of the
                Bank, either:

            

    

    

    
      	 	
              (i)

            	
              be
                credited to Participants’ Accounts in accordance with Section 5.03 of the
                Plan and invested as part of the Trust
                Fund;

            

    

    

    
      	 	
              (ii)

            	
              be
                distributed immediately to the
                Participants;

            

    

    

    
      	 	
              (iii)

            	
              be
                distributed to the Participants within ninety (90) days of the close
                of
                the Plan Year in which paid; or

            

    

    

    
      	 	
              (iv)

            	
              be
                used to repay principal and interest on the Acquisition Loan used
                to
                acquire Company Stock on which the dividends were
                paid.

            

    

    

    In
      addition to the alternatives specified in the preceding paragraph regarding
      the
      treatment of cash dividends paid with respect to shares of Company Stock
      credited to Participants’ Accounts, if authorized by the Committee for the Plan
      Year, a Participant may elect that cash dividends paid on Company Stock credited
      to the Participant’s Account shall either be:

    

    
      	 	
              (i)

            	
              paid
                to the Plan, reinvested in Company Stock and credited to the Participant’s
                Account;

            

    

     

    
      	 	
              (ii)

            	
              distributed
                in cash to the Participant; or

            

    

    

    
      	 	
              (iii)

            	
              distributed
                to the Participant within ninety (90) days of the close of the Plan
                Year
                in which paid.

            

    

    

    Dividends
      subject to an election under this paragraph (and any Company Stock acquired
      therewith pursuant to a Participant’s election) shall at all times be fully
      vested. To the extent the Committee authorizes dividend elections pursuant
      to
      this paragraph, the Committee shall establish policies and procedures relating
      to Participant elections and, if applicable, the reinvestment of cash dividends
      in Company Stock, which are consistent with guidance issued under Section 404(k)
      of the Code.

    

    
      	
              (c)

            	
              Cash
                Dividends on Unallocated Shares. Dividends
                on Company Stock held in the Loan Suspense Account received by the
                Trustee
                in the form of cash shall be applied as soon as practicable to payments
                of
                principal and interest under the Acquisition Loan incurred with the
                purchase of Company Stock.

            

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    
      	
              (d)
                

            	
              Financed
                Shares.
                Financed Shares released from the Loan Suspense Account by reason
                of
                dividends paid with respect to Company Stock shall be allocated under
                Sections 5.03 and 5.04 of the Plan as
                follows:

            

    

    

    
      	 	
              (i)

            	
              First,
                Financed Shares with a fair market value at least equal to the dividends
                paid with respect to the Company Stock allocated to Participants’ Accounts
                shall be allocated among and credited to the Accounts of such
                Participants, pro rata, according to the number of shares of Company
                Stock
                held in such accounts on the date the dividend is declared by the
                Company;
                and

            

    

    

    
      	 	
              (ii)

            	
              Next,
                any remaining Financed Shares released from the Loan Suspense Account
                by
                reason of dividends paid with respect to Company Stock held in the
                Loan
                Suspense Account shall be allocated among and credited to the Accounts
                of
                all Participants, pro rata, according to each Participant’s
                Compensation.

            

    

    

    SECTION
      6

    Vesting
      and Forfeitures

    

    Section
      6.01    
Deferred
      Vesting in Accounts.

    

    
      	
              (a)

            	
              A
                Participant shall vest in his Accounts in accordance with the following
                schedule: 

            

    

     

    
      
        	
                 Years
                  of Service

              	 	
                Vested
                  Percentage

              
	 	 	 	 	 
	 	
                0-2

              	 	
                10%

              	 
	 	
                2

              	 	
                20%

              	 
	 	
                3

              	 	
                40%

              	 
	 	
                4

              	 	
                60%

              	 
	 	
                5

              	 	
                80%

              	 
	 	
                6
                  or more years

              	
              	
                100%

              	 

      

    

      

    
      	
              (b)

            	
              For
                purposes of determining a Participant’s Years of Service under this
                Section 6.01, employment with the Bank or an Affiliate shall be deemed
                employment with the Employer. For purposes of determining a Participant’s
                vested percentage in his Accounts, all Years of Service shall be
                included,
                beginning with the Employee’s initial service with the
                Employer.

            

    

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    
      

      Section
        6.02    
Immediate
        Vesting in Certain Situations.

      

      
        	
                (a)

              	
                Notwithstanding
                  Section 6.01(a) of the Plan, a Participant shall become fully vested
                  in
                  his Accounts upon the earlier of:

              

      

       

    

    
      	 	
              (i)

            	
              termination
                of the Plan or upon the permanent and complete discontinuance of
                contributions by the Employer to the Plan; provided, however, that
                in the
                event of a partial termination of the Plan, the interest of each
                Participant shall fully vest only with respect to that part of the
                Plan
                which is terminated; 

            

    

    

    
      	 	
              (ii)

            	
              Termination
                of Service on or after the Participant’s Normal Retirement
                Date;

            

    

    

    
      	 	
              (iii)

            	
              a
                Change in Control; or

            

    

     

    
      	 	
              (iv)

            	
              Termination
                of Service by reason of death or
                Disability.

            

    

    

    Section
      6.03    
Treatment
      of Forfeitures.

    

    
      	
              (a)

            	
              If
                a Participant who is not fully vested in his Accounts terminates
                employment, that portion of his Accounts in which he is not vested
                shall
                be forfeited upon the earlier of:

            

    

    

    
      	 	
              (i)

            	
              the
                date the Participant receives a distribution of his entire vested
                benefits
                under the Plan, or 

            

    

    

    
      	 	
              (ii)

            	
              the
                date at which the Participant incurs five (5) consecutive One Year
                Breaks
                in Service.

            

    

    

    
      	
              (b)

            	
              If
                a Participant who has terminated employment and has received a
                distribution of his entire vested benefits under the Plan is subsequently
                reemployed by an Employer prior to incurring five (5) consecutive
                One Year
                Breaks in Service, he shall have the portion of his Accounts which
                was
                previously forfeited restored to his Accounts, provided he repays
                to the
                Trustee within five (5) years of his subsequent employment date an
                amount
                equal to the previous distribution. The amount restored to the
                Participant’s Account shall be credited to his Account as of the last day
                of the Plan Year in which the Participant repays the distributed
                amount to
                the Trustee and the restored amount shall come from other Employees’
                forfeitures and, if such forfeitures are insufficient, from a special
                contribution by the Employer for that year. If a Participant’s employment
                terminates prior to his Account having become vested, such Participant
                shall be deemed to have received a distribution of his entire vested
                interest as of the Valuation Date next following his termination
                of
                employment.

            

    

    

    
      	
              (c)

            	
              If
                a Participant who has terminated employment but has not received
                a
                distribution of his entire vested benefits under the Plan is subsequently
                reemployed by an Employer subsequent to incurring five (5) consecutive
                One
                Year Breaks in Service, any undistributed balance of his Accounts
                from his
                prior participation which was not forfeited shall be maintained as
                a fully
                vested subaccount within his
                Account.

            

    

    

    
      	
              (d)

            	
              If
                a portion of a Participant’s Account is forfeited, assets other than
                Company Stock must be forfeited before any Company Stock may be
                forfeited.

            

    

    

    
      	
              (e)

            	
              Forfeitures
                shall be reallocated among the other Participants in the
                Plan.

            

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    Section
      6.04    
Accounting
      for Forfeitures.

    

    A
      forfeiture shall be charged to the Participant’s Account as of the first day of
      the first Valuation Period in which the forfeiture becomes certain pursuant
      to
      Section 6.03 of the Plan. Except as otherwise provided in Section 6.03 of the
      Plan, a forfeiture shall be added to the contributions of the terminated
      Participant’s Employer which are to be credited to other Participants pursuant
      to Section 5 as of the last day of the Plan Year in which the forfeiture becomes
      certain.

    

    Section
      6.05     Vesting
      Upon Reemployment.

    

    If
      a
      Participant incurs a One Year Break in Service and again performs an Hour of
      Service, such Participant shall receive credit, for purposes of Section 6.01
      of
      the Plan, for his Years of Service prior to his One Year Break in
      Service.

    

    SECTION
      7

    Distributions

    

    Section
      7.01     Distribution
      of Benefit Upon a Termination of Employment. 

    

    
      	(a)	
              A
                Participant whose employment terminates for any reason shall receive
                the
                entire vested portion of his Accounts in a single payment on a date
                selected by the Committee; provided, however, that such date shall
                be on
                or before the 60th day after the end of the Plan Year in which the
                Participant’s employment terminated. The benefits from that portion of the
                Participant’s Other Investments Account shall be calculated on the basis
                of the most recent Valuation Date before the date of payment. Subject
                to
                the provisions of Section 7.05 of the Plan, if the Committee so provides,
                a Participant may elect that his benefits be distributed to him in
                the
                form of Company Stock, cash, or some combination
                thereof.

            

    

    

    
      	(b)	
              Notwithstanding
                paragraph (a) of this Section 7.01, if the balance credited to a
                Participant’s Accounts exceeds, at the time such benefit was
                distributable, $1,000, his benefits shall not be paid before the
                latest of
                his 65th birthday or the tenth anniversary of the year in which he
                commenced participation in the Plan, unless he elects an early pay-ment
                date in a written election filed with the Committee. Such an election
                is
                not valid unless it is made after the Participant has received the
                required notice under Section 1.411(a)-11(c) of the Treasury Regulations
                that provides a general description of the material features of a
                lump sum
                distribution and the Participant’s right to defer receipt of his benefits
                under the Plan. The notice shall be provided no less than 30 days
                and no
                more than 90 days before the first day on which all events have occurred
                which entitle the Participant to such benefit. Written consent of
                the
                Participant to the distribution generally may not be made within
                30 days
                of the date the Participant receives the notice and shall not be
                made more
                than 90 days from the date the Participant receives the notice. However,
                a
                distribution may be made less than 30 days after the notice provided
                under
                Section 1.411(a)-11(c) of the Treasury Regulations is given,
                if:

            

    

    
       

      
        	
              	
                (i)

              	
                the
                  Committee clearly informs the Participant that he has a right to
                  a period
                  of at least 30 days after receiving the notice to consider the
                  decision of
                  whether or not to elect a distribution (and if applicable, a particular
                  distribution option), and

              

      

       

      
        
          	
                	(ii)	
                  the
                    Participant, after receiving the notice, affirmatively elects
                    a
                    distribution.

                

        

         

      

    

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

       

    

    A
      Participant may modify such an election at any time, provided any new benefit
      payment date is at least 30 days after a modified election is delivered to
      the
      Committee. 

    

    Section
      7.02     Minimum
      Distribution Requirements.

    

    The
      Plan
      shall be administered in accordance with Section 401(a)(9) of the Internal
      Revenue Code and all regulations promulgated thereunder. With respect to all
      Participants, other than those who are “5% owners” (as defined in Section 416 of
      the Code), benefits shall be paid on the required beginning date which is no
      later than the April 1st of the later of:

    

    
      	
            	(i)	
              the
                calendar year following the calendar year in which the Participant
                attains
                age 70 1/2, or

            

    

    

    
      	
            	(ii)	
              the
                calendar year in which the Participant retires.

            

    

    

    With
      respect to all Participants who are 5% owners within the meaning of Section
      416
      of the Code, such Participants’ benefits shall be paid no later than the April
      1st of the calendar year following the calendar year in which the Participant
      attains age 70 1/2.

    

    Section
      7.03     Benefits
      on a Participant’s Death.

    

    
      	(a)	
              If
                a Participant dies before his benefits are paid pursuant to Section
                7.01
                of the Plan, the balance credited to his Accounts shall be paid to
                his
                Beneficiary in a single distribution on or before the 60th day after
                the
                end of the Plan Year in which the Participant died. If the Participant
                has
                not named a Beneficiary or his named Beneficiary should not survive
                him,
                then the balance in his Accounts shall be paid to his estate. The
                benefits
                from that portion of the Participant’s Other Investments Account shall be
                calculated on the basis of the most recent Valuation Date before
                the date
                of payment.

            

    

    

    
      	(b)	
              If
                a married Participant dies before his benefit payments begin, then,
                unless
                he has specifically elected otherwise, the Committee shall cause
                the
                balance in his Accounts to be paid to his spouse, as Beneficiary.
                A
                married Participant may name an individual other than his spouse
                as
                Beneficiary provided that such election is accompanied by the spouse’s
                written consent which must:

            

    

    

    
      	
            	(i)	
              acknowledge
                the effect of the election;

            

    

    

    
      	
            	(ii)	
              explicitly
                provide either that the designated Beneficiary may not subsequently
                be
                changed by the Participant without the spouse’s further consent or that it
                may be changed without such consent; and

            

    

     

    
      
        	
              	(iii)	
                must
                  be witnessed by the Committee, its representative, or a notary
                  public.

              

      

       

    

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

       

    

    This
      requirement shall not apply if the Participant establishes to the Committee’s
      satisfaction that the spouse may not be located.

    

    
      	(c)	
              The
                Committee shall, from time to time, take whatever steps it deems
                appropriate to keep informed of each Participant’s marital status. Each
                Employer shall provide the Committee with the most reliable information
                in
                the Employer’s possession regarding its Participants’ marital status, and
                the Committee may, in its discretion, require a notarized affidavit
                from
                any Participant as to his marital status. The Committee, the Plan,
                the
                Trustee, and the Employers shall be fully protected and discharged
                from
                any liability to the extent of any benefit payments made as a result
                of
                the Committee’s good faith and reasonable reliance upon information
                obtained from a Participant as to the Participant’s marital
                status.

            

    

    

    Section
      7.04     Delay
      in Benefit Determination.

    

    If
      the
      Committee is unable to determine the benefits payable to a Participant or
      Beneficiary on or before the latest date prescribed for payment pursuant to
      this
      Section 7, the benefits shall in any event be paid within 60 days after they
      can
      first be determined.

    

    Section
      7.05    
Options
      to Receive and Sell Company Stock.

    

    
      	(a)	
              Unless
                ownership of virtually all Company Stock is restricted to active
                Employees
                and qualified retirement plans for the benefit of Employees pursuant
                to
                the certificates of incorporation or by-laws of the Employers issuing
                Company Stock, a terminated Participant or the Beneficiary of a deceased
                Participant may instruct the Committee to distribute the Participant’s
                entire vested interest in his Accounts in the form of Company Stock.
                In
                that event, the Committee shall apply the Participant’s vested interest in
                his Other Investments Account to purchase sufficient Company Stock
                to make
                the required distribution. 

            

    

    

    
      	(b)	
              Any
                Participant who receives Company Stock pursuant to this Section 7.05,
                and
                any person who has received Company Stock from the Plan or from such
                a
                Participant by reason of the Participant’s death or incompetency, by
                reason of divorce or separation from the Participant, or by reason
                of a
                rollover distribution described in Section 402(c) of the Code, shall
                have
                the right to require the Employer which issued the Company Stock
                to
                purchase the Company Stock for its current fair market value (hereinafter
                referred to as the “put right”). The put right shall be exercisable by
                written notice to the Committee during the first 60 days after the
                Company
                Stock is distributed by the Plan, and, if not exercised in that period,
                during the first 60 days in the following Plan Year after the Committee
                has communicated to the Participant its determination as to the Company
                Stock’s current fair market value. If the put right is exercised, the
                Trustee may, if so directed by the Committee in its sole discretion,
                assume the Employer’s rights and obligations with respect to purchasing
                the Company Stock. However, the put right shall not apply to the
                extent
                that the Company Stock, at the time the put right would otherwise
                be
                exercisable, may be sold on an established market in accordance with
                federal and state securities laws and
                regulations.

            

    

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

       

    

    
      	
              (c)

            	
              With
                respect to a put right, the Employer or the Trustee, as the case
                may be,
                may elect to pay for the Company Stock in equal periodic installments,
                not
                less frequently than annually, over a period not longer than five
                (5)
                years from the 30th day after the put right is exercised pursuant
                to
                paragraph (b) of this Section 7.05, with adequate security and interest
                at
                a reasonable rate on the unpaid balance, all such terms to be set
                forth in
                a promissory note delivered to the seller with normal terms as to
                acceleration upon any uncured
                default.

            

    

    

    
      	(d)	
              Nothing
                contained in this Section 7.05 shall be deemed to obligate any Employer
                to
                register any Company Stock under any federal or state securities
                law or to
                create or maintain a public market to facilitate the transfer or
                disposition of any Company Stock. The put right described in this
                Section
                7.05 may only be exercised by a person described in paragraph (b)
                of this
                Section 7.05, and may not be transferred with any Company Stock to
                any
                other person. As to all Company Stock purchased by the Plan in exchange
                for any Acquisition Loan, the put right must be nonterminable. The
                put
                right for Company Stock acquired through an Acquisition Loan shall
                continue with respect to such Company Stock after the Acquisition
                Loan is
                repaid or the Plan ceases to be an employee stock ownership plan.
                Except
                as provided above, in accordance with the provisions of Sections
                54.4975-7(b)(4) of the Treasury Regulations, no Company Stock acquired
                with the proceeds of an Acquisition Loan may be subject to any put,
                call
                or other option or buy-sell or similar arrangement while held by,
                and when
                distributed from, the Plan, whether or not the Plan is then an employee
                stock ownership plan.

            

    

    

    Section
      7.06     Restrictions
      on Disposition of Company Stock.

    

    Except
      in
      the case of Company Stock which is traded on an established market, a
      Participant who receives Company Stock pursuant to this Section 7, and any
      person who has received Company Stock from the Plan or from such a Participant
      by reason of the Participant’s death or incompetency, divorce or separation from
      the Participant, or a rollover distribution described in Section 402(c) of
      the
      Code, shall, prior to any sale or other transfer of the Company Stock to any
      other person, first offer the Company Stock to the issuing Employer and to
      the
      Plan at its current fair market value. This restriction shall apply to any
      transfer, whether voluntary, involuntary, or by operation of law, and whether
      for consideration or gratuitous. Either the Employer or the Trustee may accept
      the offer within 14 days after it is delivered. Any Company Stock distributed
      by
      the Plan shall bear a conspicuous legend describing the right of first refusal
      under this Section 7.06, as applicable, as well as any other restrictions upon
      the transfer of the Company Stock imposed by federal and state securities laws
      and regulations.

    

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    Section
      7.07    
Direct
      Transfer of Eligible Plan Distributions.
      

    

    
      	(a)	
              Notwithstanding
                any provision of the Plan to the contrary that would otherwise limit
                a
                distributee’s election under this Section, a distributee (as defined
                below) may elect to have any portion of an eligible rollover distribution
                (as defined below) paid directly to an eligible retirement plan (as
                defined below) specified by the distributee in a direct rollover
                (as
                defined below). A “distributee” includes a Participant or former
                Participant. In addition, the Participant’s or former Participant’s
                surviving spouse and the Participant’s or former Participant’s spouse or
                former spouse who is the alternate payee under a qualified domestic
                relations order, as defined in Section 414(p) of the Code, are
                distributees with regard to the interest of the spouse or former
                spouse.
                For purposes of this Section 7.07 a “direct rollover” is a payment by the
                Plan to the eligible retirement plan specified by the
                distributee.

            

    

    

    
      	(b)	
              To
                effect such a direct transfer, the distributee must notify the Committee
                that a direct rollover is desired and provide to the Committee sufficient
                information regarding the eligible retirement plan to which the payment
                is
                to be made. Such notice shall be made in such form and at such time
                as the
                Committee may prescribe. Upon receipt of such notice, the Committee
                shall
                direct the Trustee to make a trustee-to-trustee transfer of the eligible
                rollover distribution to the eligible retirement plan so specified.
                

            

    

    

    
      	(c)	
              For
                purposes of this Section 7.07, an “eligible rollover distribution” shall
                have the meaning set forth in Section 402(c)(4) of the Code and any
                Treasury Regulations promulgated thereunder. To the extent such meaning
                is
                not inconsistent with the above references, an eligible rollover
                distribution shall mean any distribution of all or any portion of
                the
                Participant’s Account, except that such term shall not include any
                distribution which is one of a series of substantially equal periodic
                payments (not less frequently than annually) made (i) for the life
                (or
                life expectancy) of the Participant or the joint lives (or joint
                life
                expectancies) of the Participant and a designated Beneficiary, or
                (ii) for
                a period of ten years or more. Further, the term “eligible rollover
                distribution” shall not include any distribution required to be made under
                Section 401(a)(9) of the Code or, the portion of any distribution
                that is
                not includible in gross income (determined without regard to the
                exclusions for net unrealized appreciation with respect to Company
                Stock).
                To the extent applicable under the Plan, “eligible rollover distributions”
                shall also not include any hardship distribution described in Section
                401(k)(2)(B)(i)(IV) of the Code.

            

    

    

    
      	(d)	
              For
                purposes of this Section 7.07, an “eligible retirement plan” shall have
                the meaning set forth in Section 402(c)(8) of the Code and any Treasury
                Regulations promulgated thereunder. To the extent such meaning is
                not
                consistent with the above references, an eligible retirement plan
                shall
                mean: (i) an individual retirement account described in Section 408(a)
                of
                the Code, (ii) an individual retirement annuity described in Section
                408(b) of the Code, (iii) an annuity or annuity plan described in
                Section
                403(a) or Section 403(b) of the Code, (iv) a qualified trust described
                in
                Section 401(a) of the Code, or (v) a governmental plan under Section
                457
                of the Code that accepts the distributee’s eligible rollover distribution.
                However, in the case of an eligible rollover distribution to a surviving
                spouse, an eligible retirement plan means an individual retirement
                account
                or individual retirement annuity.

            

    

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    
      	
              (e)

            	
              An
                eligible retirement plan shall also mean an annuity contract described
                in
                Section 403(b) of the Code and an eligible plan under
                Section 457(b) of the Code which is maintained by a state, political
                subdivision of a state, or any agency or instrumentality of a state
                or
                political subdivision of a state which agrees to separately account
                for
                amounts transferred into such plan from this Plan. The definition
                of
                eligible retirement plan shall also apply in the case of a distribution
                to
                a surviving spouse, or to a spouse or former spouse who is the alternate
                payee under a qualified domestic relation order as defined in
                Section 414(p) of the Code.

            

    

    

    SECTION
      8

    Voting
      of Company Stock and Tender Offers

    

    Section
      8.01    
Voting
      of Company Stock.

    

    
      	(a)	
              In
                General.
                The Trustee shall generally vote all shares of Company Stock held
                in the
                Trust in accordance with the provisions of this Section
                8.01.

            

    

    

    
      	(b)	
              Allocated
                Shares.
                Shares of Company Stock which have been allocated to Participants’
                Accounts shall be voted by the Trustee in accordance with the
                Participants’ written instructions.

            

    

    

    
      	(c)	
              Uninstructed
                and Unallocated Shares. Shares
                of Company Stock which have been allocated to Participants’ Accounts but
                for which no written instructions have been received by the Trustee
                regarding voting shall be voted by the Trustee in a manner calculated
                to
                most accurately reflect the instructions the Trustee has received
                from
                Participants regarding voting shares of allocated Company Stock.
                Shares of
                unallocated Company Stock shall also be voted by the Trustee in a
                manner
                calculated to most accurately reflect the instructions the Trustee
                has
                received from Participants regarding voting shares of allocated Company
                Stock. Notwithstanding the preceding two sentences, all shares of
                Company
                Stock which have been allocated to Participants’ Accounts and for which
                the Trustee has not timely received written instructions regarding
                voting
                and all unallocated shares of Company Stock must be voted by the
                Trustee
                in a manner determined by the Trustee to be solely in the best interests
                of the Participants and
                Beneficiaries.

            

    

    

    
      	(d)	
              Voting
                Prior to Allocation.
                In
                the event no shares of Company Stock have been allocated to Participants’
                Accounts at the time Company Stock is to be voted, each Participant
                shall
                be deemed to have one share of Company Stock allocated to his Accounts
                for
                the sole purpose of providing the Trustee with voting
                instructions.

            

    

    

    
      	(e)	
              Procedure
                and Confidentiality. Whenever
                such voting rights are to be exercised, the Employers, the Committee,
                and
                the Trustee shall see that all Participants and Beneficiaries are
                provided
                with the same notices and other materials as are provided to other
                holders
                of the Company Stock, and are provided with adequate opportunity
                to
                deliver their instructions to the Trustee regarding the voting of
                Company
                Stock allocated to their Accounts or deemed allocated to their Accounts
                for purposes of voting. The instructions of the Participants with
                respect
                to the voting of shares of Company Stock shall be
                confidential.

            

    

    

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    Section
      8.02     Tender
      Offers.

    

    In
      the
      event of a tender offer, Company Stock shall be tendered by the Trustee in
      the
      same manner set forth in Section 8.01 of the Plan regarding the voting of
      Company Stock.

    

    SECTION
      9

    The
      Committee and Plan Administration

    

    Section
      9.01     Identity
      of the Committee.

    

    The
      Committee shall consist of three or more individuals selected by the Bank.
      Any
      individual, including a director, trustee, shareholder, officer, or Employee
      of
      an Employer, shall be eligible to serve as a member of the Committee. The Bank
      shall have the power to remove any individual serving on the Committee at any
      time without cause upon ten (10) days’ written notice to such individual and any
      individual may resign from the Committee at any time without reason upon ten
      (10) days’ written notice to the Bank. The Bank shall notify the Trustee of any
      change in membership of the Committee.

    

    Section
      9.02     Authority
      of Committee.

     

    
      	(a)	
              The
                Committee shall be the “plan administrator” within the meaning of ERISA
                and shall have exclusive responsibility and authority to control
                and
                manage the operation and administration of the Plan, including the
                interpretation and application of its provisions, except to the extent
                such responsibility and authority are otherwise
                specifically:

            

    

    

    
      	
            	(i)	
              allocated
                to the Bank, the Employers, or the Trustee under the Plan and Trust
                Agreement; 

            

    

    

    
      	
            	(ii)	
              delegated
                in writing to other persons by the Bank, the Employers, the Committee,
                or
                the Trustee; or 

            

    

    

    
      	
            	(iii)	
              allocated
                to other parties by operation of law.

            

    

    

    
      	(b)	
              The
                Committee shall have exclusive responsibility regarding decisions
                concerning the payment of benefits under the Plan.
                

            

    

    

    
      	(c)	
              The
                Committee shall have full investment responsibility with respect
                to the
                Investment Fund except to the extent, if any, specifically provided
                for in
                the Trust Agreement.

            

    

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    
      	(d)	
              In
                the discharge of its duties, the Committee may employ accountants,
                actuaries, legal counsel, and other agents (who also may be employed
                by an
                Employer or the Trustee in the same or some other capacity) and may
                pay
                such individuals reasonable compensation and expenses for their services
                rendered with respect to the operation or administration of the Plan,
                to
                the extent such payments are not otherwise prohibited by
                law.

            

    

    

    Section
      9.03    
Duties
      of Committee.

    

    
      	(a)	
              The
                Committee shall keep whatever records may be necessary in connection
                with
                the maintenance of the Plan and shall furnish to the Employers whatever
                reports may be required from time to time by the Employers. The Committee
                shall furnish to the Trustee whatever information may be necessary
                to
                properly administer the Trust. The Committee shall see to the filing
                with
                the appropriate government agencies of all reports and returns required
                with respect to the Plan under ERISA, the Code and other applicable
                laws
                and regulations.

            

    

    

    
      	(b)	
              The
                Committee shall have exclusive responsibility and authority with
                respect
                to the Plan’s holdings of Company Stock and shall direct the Trustee in
                all respects regarding the purchase, retention, sale, exchange, and
                pledge
                of Company Stock and the creation and satisfaction of any Acquisition
                Loan
                to the extent such responsibilities are not set forth in the Trust
                Agreement.

            

    

    

    
      	(c)	
              The
                Committee shall at all times act consistently with the Bank’s long-term
                intention that the Plan, as an employee stock ownership plan, be
                invested
                primarily in Company Stock. Subject to the direction of the Committee
                with
                respect to any Acquisition Loan pursuant to the provisions of Section
                4.03
                of the Plan, and subject to the provisions of Sections 7.05 and 11.04
                of
                the Plan as to Participants’ rights under certain circumstances to have
                their Accounts invested in Company Stock or in assets other than
                Company
                Stock, the Committee shall determine, in its sole discretion, the
                extent
                to which assets of the Trust shall be used to repay any Acquisition
                Loan,
                to purchase Company Stock, or to invest in other assets selected
                by the
                Committee or an investment manager. No provision of the Plan relating
                to
                the allocation or vesting of any interests in Company Stock or investments
                other than Company Stock shall restrict the Committee from changing
                any
                holdings of the Trust Fund, whether the changes involve an increase
                or a
                decrease in the Company Stock or other assets credited to Participants’
                Accounts. In determining the proper extent of the Trust Fund’s investment
                in Company Stock, the Committee shall be authorized to employ investment
                counsel, legal counsel, appraisers, and other agents and to pay their
                reasonable compensation and expenses to the extent such payments
                are not
                prohibited by law.

            

    

    

    
      	(d)	
              If
                the valuation of any Company Stock is not established by reported
                trading
                on a generally recognized public market, then the Committee shall
                have the
                exclusive authority and responsibility to determine the value of
                the
                Company Stock for all purposes under the Plan. Such value shall be
                determined as of each Valuation Date and on any other date as of
                which the
                Trustee purchases or sells Company Stock in a manner consistent with
                Section 4975 of the Code and the Treasury Regulations issued thereunder.
                The Committee shall use generally accepted methods of valuing stock
                of
                similar corporations for purposes of arm’s length business and investment
                transactions, and in this connection the Committee shall obtain,
                and shall
                be protected in relying upon, the valuation of Company Stock as determined
                by an independent appraiser (as defined in Section 401(a)(28)(c)
                of the
                Code).

            

    

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    Section
      9.04     Compliance
      with ERISA and the Code.

    

    The
      Committee shall perform all acts necessary to ensure the Plan’s compliance with
      ERISA and the Code. Each individual member of the Committee shall discharge
      his
      duties in good faith and in accordance with the applicable requirements of
      ERISA
      and the Code.

    

    Section
      9.05     Action
      by Committee.

    

    All
      actions of the Committee shall be governed by the affirmative vote of a majority
      of the total number of Committee members. The members of the Committee may
      meet
      informally and may take any action without meeting as a group.

    

    Section
      9.06     Execution
      of Documents.

    

    Any
      instrument to be executed by the Committee may be signed by any member of the
      Committee.

    

    Section
      9.07    
Adoption
      of Rules. 

    

    The
      Committee shall adopt such rules and regulations of uniform applicability as
      it
      deems necessary or appropriate for the proper operation, administration and
      interpretation of the Plan.

    

    Section
      9.08    
Responsibilities
      to Participants.

    

    The
      Committee shall determine which Employees qualify to participate in the Plan.
      The Committee shall furnish to each Eligible Employee whatever summary plan
      descriptions, summary annual reports, and other notices and information that
      may
      be required under ERISA. The Committee also shall determine when a Participant
      or his Beneficiary qualifies for the payment of benefits under the Plan. The
      Committee shall furnish to each such Participant or Beneficiary whatever
      information is required under ERISA or the Code (or is otherwise appropriate)
      to
      enable the Participant or Beneficiary to make whatever elections may be
      available pursuant to Section 7, and the Committee shall provide for the payment
      of benefits in the proper form and amount from the Trust. The Committee may
      decide in its sole discretion to permit modifications of elections and to defer
      or accelerate benefits to the extent consistent with the terms of the Plan,
      applicable law, and the best interests of the individuals
      concerned.

    

    Section
      9.09    
Alternative
      Payees in Event of Incapacity.

    

    If
      the
      Committee finds at any time that an individual qualifying for benefits under
      this Plan is a minor or is incompetent, the Committee may direct the benefits
      to
      be paid, in the case of a minor, to his parents, his legal guardian, a custodian
      for him under the Uniform Transfers to Minors Act, or the person having actual
      custody of him, or, in the case of an incompetent, to his spouse, his legal
      guardian, or the person having actual custody of him. The Committee and the
      Trustee shall not be obligated to inquire as to the actual use of the funds
      by
      the person receiving them under this Section 9.09, and any such payment shall
      completely discharge the obligations of the Plan, the Trustee, the Committee,
      and the Employers to the extent of the payment.

    

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

       

    

    Section
      9.10     Indemnification
      by Employers.

    

    Except
      as
      separately agreed upon in writing, the Committee, and any member or employee
      of
      the Committee, shall be indemnified and held harmless by the Employers, jointly
      and severally, to the fullest extent permitted by law, against any and all
      costs, damages, expenses, and liabilities reasonably incurred by or imposed
      upon
      the Committee or such individual in connection with any claim made against
      the
      Committee or such individual, or in which the Committee or such individual
      may
      be involved by reason of being, or having been, the Committee, or a member
      or
      employee of the Committee, to the extent such amounts are not paid by
      insurance.

    

    Section
      9.11    
Abstention
      by Interested Member. 

    

    Any
      member of the Committee who is also a Participant in the Plan shall take no
      part
      in any determination specifically relating to his own participation or benefits
      under the Plan, unless an abstention would render the Committee incapable of
      acting on the matter.

    

    SECTION
      10

    Rules
      Governing Benefit Claims

    

    Section
      10.01  
Claim
      for Benefits.

    

    Any
      Participant or Beneficiary who qualifies for the payment of benefits shall
      file
      a claim for benefits with the Committee on a form provided by the Committee.
      The
      claim, including any election of an alternative benefit form, shall be filed
      at
      least 30 days before the date on which the benefits are to begin. If a
      Participant or Beneficiary fails to file a claim by the 30th day before the
      date
      on which benefits become payable, he shall be presumed to have filed a claim
      for
      payment for the Participant’s benefits in the standard form prescribed by
      Section 7 of
      the
      Plan.

    

    Section
      10.02   Notification
      by Committee.

    

    Within
      90
      days after receiving a claim for benefits (or within 180 days, if special
      circumstances require an extension of time and written notice of the extension
      is given to the Participant or Beneficiary within 90 days after receiving the
      claim for benefits), the Committee shall notify the Participant or Beneficiary
      whether the claim has been approved or denied. If the Committee denies a claim
      in any respect, the Committee shall set forth in a written notice to the
      Participant or Beneficiary:

    

    
      	(a)	
              each
                specific reason for the denial;

            

    

    

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

       

    

    
      	(b)	
              specific
                references to the pertinent Plan provisions on which the denial is
                based;

            

    

    

    
      	(c)	
              a
                description of any additional material or information which could
                be
                submitted by the Participant or Beneficiary to support his claim,
                with an
                explanation of the relevance of such information;
                and

            

    

    

    
      	(d)	
              an
                explanation of the claims review procedures set forth in Section
                10.03 of
                the Plan.

            

    

    

    Section
      10.03   Claims
      Review Procedure.

    

    Within
      60
      days after a Participant or Beneficiary receives notice from the Committee
      that
      his claim for benefits has been denied in any respect, he may file with the
      Committee a written notice of appeal setting forth his reasons for disputing
      the
      Committee’s determination. In connection with his appeal, the Participant or
      Beneficiary or his representative may inspect or purchase copies of pertinent
      documents and records to the extent not inconsistent with other Participants’
and Beneficiaries’ rights of privacy. Within 60 days after receiving a notice of
      appeal from a prior determination (or within 120 days, if special circumstances
      require an extension of time and written notice of the extension is given to
      the
      Participant or Beneficiary and his representative within 60 days after receiving
      the notice of appeal), the Committee shall furnish to the Participant or
      Beneficiary and his representative, if any, a written statement of the
      Committee’s final decision with respect to his claim, including the reasons for
      such decision and the particular Plan provisions upon which it is
      based.

    

    SECTION
      11

    The
      Trust

    

    Section
      11.01   Creation
      of Trust Fund. 

    

    All
      amounts received under the Plan from an Employer and investments shall be held
      in a Trust Fund pursuant to the terms of this Plan and the Trust Agreement.
      The
      benefits described in this Plan shall be payable only from the assets of the
      Trust Fund. Neither the Bank, any other Employer, its board of directors or
      trustees, its stockholders, its officers, its employees, the Committee, nor
      the
      Trustee shall be liable for payment of any benefit under this Plan except from
      the Trust Fund.

    

    Section
      11.02   Company
      Stock and Other Investments. 

    

    The
      Trust
      Fund held by the Trustee shall be divided into Company Stock and investments
      other than Company Stock. The Trustee shall have no investment responsibility
      for the portion of the Trust Fund consisting of Company Stock, but shall accept
      any Employer contributions made in the form of Company Stock, and shall acquire,
      sell, exchange, distribute, and otherwise deal with and dispose of Company
      Stock
      in accordance with the instructions of the Committee.

    

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    Section
      11.03   Acquisition
      of Company Stock.

    

    From
      time
      to time the Committee may, in its sole discretion, direct the Trustee to acquire
      Company Stock from the issuing Employer or from shareholders, including
      shareholders who are or have been Employees, Participants, or fiduciaries with
      respect to the Plan. The Trustee shall pay for such Company Stock no more than
      its fair market value, which shall be determined conclusively by the Committee
      pursuant to Section 9.03(d) of the Plan. The Committee may direct the Trustee
      to
      finance the acquisition of Company Stock through an Acquisition Loan subject
      to
      the provisions of Section 4.03 of the Plan.

    

    Section
      11.04   Participants’
      Option to Diversify.
      

    

    The
      Committee shall establish a procedure under which each Participant may, during
      the first five years of a certain six-year period, elect to have up to 25
      percent of the value of his Accounts committed to alternative investment options
      within an “Investment Fund.” For the sixth year in this period, the Participant
      may elect to have up to 50 percent of the value of his Accounts committed to
      other investments. The six-year period shall begin with the Plan Year following
      the first Plan Year in which the Participant has both reached age 55 and
      completed 10 years of participation in the Plan; a Participant’s election to
      diversify his Accounts must be made within the 90-day period immediately
      following the last day of each of the six Plan Years. The Committee shall see
      that the Investment Fund includes a sufficient number of investment options
      to
      comply with Section 401(a)(28)(B) of the Code. The Committee may, in its
      discretion, permit a transfer of a portion of the Participant’s Accounts to the
      Equitable Bank Retirement Plan in order to satisfy this Section 11.04, provided
      such investments comply with Section 401(a)(28)(B) of the Code and such transfer
      is not otherwise prohibited under the Code or ERISA. The Trustee shall comply
      with any investment directions received from Participants in accordance with
      the
      procedures adopted from time to time by the Committee under this Section
      11.04.

    

    SECTION
      12

    Adoption,
      Amendment and Termination

    

    Section
      12.01   Adoption
      of Plan by Other Employers.

    

    With
      the
      consent of the Bank, any entity may become a participating Employer under the
      Plan by:

    

    
      	(a)	
              taking
                such action as shall be necessary to adopt the
                Plan;

            

    

    

    
      	(b)	
              becoming
                a party to the Trust Agreement establishing the Trust Fund;
                and

            

    

    

    
      	(c)	
              executing
                and delivering such instruments and taking such other action as may
                be
                necessary or desirable to put the Plan into effect with respect to
                the
                entity’s Employees.

            

    

    

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    Section
      12.02   Adoption
      of Plan by Successor.

    

    In
      the
      event that any Employer shall be reorganized by way of merger, consolidation,
      transfer of assets or otherwise, so that an entity other than an Employer shall
      succeed to all or substantially all of the Employer’s business, the successor
      entity may be substituted for the Employer under the Plan by adopting the Plan
      and becoming a party to the Trust Agreement. Contributions by the Employer
      shall
      be automatically suspended from the effective date of any such reorganization
      until the date upon which the substitution of the successor entity for the
      Employer under the Plan becomes effective. If, within 90 days following the
      effective date of any such reorganization, the successor entity shall not have
      elected to become a party to the Plan, or if the Employer shall adopt a plan
      of
      complete liquidation other than in connection with a reorganization, the Plan
      shall be automatically terminated with respect to Employees of the Employer
      as
      of the close of business on the 90th day following the effective date of the
      reorganization, or as of the close of business on the date of adoption of a
      plan
      of complete liquidation, as the case may be.

    

    Section
      12.03   Plan
      Adoption Subject to Qualification.

    

    Notwithstanding
      any other provision of the Plan, the adoption of the Plan and the execution
      of
      the Trust Agreement are conditioned upon their being determined initially by
      the
      Internal Revenue Service to meet the qualification requirements of Section
      401(a) of the Code, so that the Employers may deduct currently for federal
      income tax purposes their contributions to the Trust and so that the
      Participants may exclude the contributions from their gross income and recognize
      income only when they receive benefits. In the event that this Plan is held
      by
      the Internal Revenue Service not to qualify initially under Section 401(a)
      of
      the Code, the Plan may be amended retroactively to the earliest date permitted
      by the Code and the applicable Treasury Regulations in order to secure
      qualification under Section 401(a) of the Code. If this Plan is held by the
      Internal Revenue Service not to qualify initially under Section 401(a) of the
      Code either as originally adopted or as amended, each Employer’s contributions
      to the Trust under this Plan (including any earnings thereon) shall be returned
      to it and this Plan shall be terminated. In the event that this Plan is amended
      after its initial qualification, and the Plan, as amended, is held by the
      Internal Revenue Service not to qualify under Section 401(a) of the Code, the
      amendment may be modified retroactively to the earliest date permitted by the
      Code and the applicable Treasury Regulations in order to secure approval of
      the
      amendment under Section 401(a) of the Code.

    

    Section
      12.04   Right
      to Amend or Terminate.

    

    
      	(a)	
              The
                Bank intends to continue this Plan as a permanent program. However,
                each
                participating Employer separately reserves the right to suspend,
                supersede, or terminate the Plan at any time and for any reason,
                as it
                applies to that Employer’s Employees, and the Bank reserves the right to
                amend, suspend, supersede, merge, consolidate, or terminate the Plan
                at
                any time and for any reason, as it applies to the Employees of all
                Employers. 

            

    

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

       

    

    
      	(b)	
              No
                amendment, suspension, supersession, merger, consolidation, or termination
                of the Plan shall reduce any Participant’s or Beneficiary’s proportionate
                interest in the Trust Fund, or shall divert any portion of the Trust
                Fund
                to purposes other than the exclusive benefit of the Participants
                and their
                Beneficiaries prior to the satisfaction of all liabilities under
                the Plan.
                Except as is required for purposes of compliance with the Code or
                ERISA,
                neither the provisions of Section 5.04 relating to the crediting
                of
                contributions, forfeitures and shares of Company Stock released from
                the
                Loan Suspense Account, nor any other provision of the Plan relating
                to the
                allocation of benefits to Participants, may be amended more frequently
                than once every six months. Moreover, there shall not be any transfer
                of
                assets to a successor plan or merger or consolidation with another
                plan
                unless, in the event of the termination of the successor plan or
                the
                surviving plan immediately following such transfer, merger, or
                consolidation, each participant or beneficiary would be entitled
                to a
                benefit equal to or greater than the benefit he would have been entitled
                to if the plan in which he was previously a participant or beneficiary
                had
                terminated immediately prior to such transfer, merger, or consolidation.
                Following a termination of this Plan by the Bank, the Trustee shall
                continue to administer the Trust and pay benefits in accordance with
                the
                Plan and the Committee’s
                instructions.

            

    

    

    
      	(c)	
              In
                the event of a Change in Control, the Plan shall be terminated and
                allocations made to Participants in accordance with the provisions
                of
                Section 5.08 of the Plan.

            

    

    

    SECTION
      13

    General
      Provisions

    

    Section
      13.01   Nonassignability
      of Benefits.
      

    

    The
      interests of Participants and other persons entitled to benefits under the
      Plan
      shall not be subject to the claims of their creditors and may not be voluntarily
      or involuntarily assigned, alienated, pledged, encumbered, sold, or transferred.
      The prohibitions set forth in this Section 13.01 shall also apply to any
      judgment, decree, or order (including approval of a property or settlement
      agreement) which relates to the provision of child support, alimony, or property
      rights to a present or former spouse, child, or other dependent of a Participant
      pursuant to a domestic relations order, unless such judgment, decree or order
      is
      determined to be a “qualified domestic relations order” as defined in Section
      414(p) of the Code.

    

    Section
      13.02   Limit
      of Employer Liability. 

    

    The
      liability of the Employers with respect to Participants and other persons
      entitled to benefits under the Plan shall be limited to making contributions
      to
      the Trust from time to time, in accordance with Section 4 of the
      Plan.

    

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

       

    

    Section
      13.03   Plan
      Expenses. 

    

    All
      expenses incurred by the Committee or the Trustee in connection with
      administering the Plan and Trust shall be paid by the Trustee from the Trust
      Fund to the extent the expenses have not been paid or assumed by the
      Employer.

    

    Section
      13.04   Nondiversion
      of Assets. 

    

    Except
      as
      provided in Sections 5.05 and 12.03 of the Plan, under no circumstances shall
      any portion of the Trust Fund be diverted to or used for any purpose other
      than
      the exclusive benefit of Participants and their Beneficiaries prior to the
      satisfaction of all liabilities under the Plan.

    

    Section
      13.05   Separability
      of Provisions. 

    

    If
      any
      provision of the Plan is held to be invalid or unenforceable, the other
      provisions of the Plan shall not be affected but shall be applied as if the
      invalid or unenforceable provision had not been included in the
      Plan.

    

    Section
      13.06   Service
      of Process. 

    

    The
      agent
      for the service of process upon the Plan shall be the Chairman of the Board
      of
      the Bank and the Trustee, or such other person as may be designated from time
      to
      time by the Bank.

    

    Section
      13.07   Governing
      Law.
      

    

    The
      Plan
      is established under, and its validity, construction and effect shall be
      governed by the laws of the State of New Jersey to the extent those laws are
      not
      preempted by federal law, including the provisions of ERISA.

    

    Section
      13.08   Special
      Rules for Persons Subject to Section 16(b) Requirements.
      

    

    Notwithstanding
      anything herein to the contrary, any former Participant who is subject to the
      provisions of Section 16(b) of the Securities Exchange Act of 1934, who becomes
      eligible to again participate in the Plan, may not become a Participant prior
      to
      the date that is six months from the date such former Participant terminated
      participation in the Plan. In addition, any person subject to the provisions
      of
      Section 16(b) of the Securities Exchange Act of 1934 Act receiving a
      distribution of Company Stock from the Plan must hold such Company Stock for
      a
      period of six months, commencing with the date of distribution. However, this
      restriction will not apply to Company Stock distributions made in connection
      with death, retirement, Disability or termination of employment, or made
      pursuant to the terms of a qualified domestic relations order.

    

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

    Section
      13.09   Military
      Service.

    

    Notwithstanding
      any other provision of this Plan to the contrary, contributions, benefits and
      Service credit with respect to qualified military service will be provided
      in
      accordance with Section 414(u) of the Code.

    

    SECTION
      14

    Top-Heavy
      Provisions

    

    Section
      14.01   Top-Heavy
      Provisions.

    

    
      	
              (a)

            	
              Key
                employee.
                Key employee means any employee or former employee (including any
                deceased
                employee) who at any time during the Plan Year that includes the
                Determination Date was an officer of the Employer having annual
                compensation greater than $130,000 (as adjusted under Section 416(i)(1)
                of
                the Code for Plan Years beginning after December 31, 2002), a 5%
                owner of
                the Employer or a 1% owner of the Employer having annual compensation
                of
                more than $150,000. For this purpose, annual compensation means
                compensation within the meaning of Section 415(c)(3) of the Code.
                The
                determination of who is a key employee will be made in accordance
                with
                Section 416(i)(1) of the Code and the applicable regulations and
                other
                guidance of general applicability issued
                thereunder.

            

    

    

    
      	
              (b)

            	
              Determination
                of present values and amounts.
                This subsection (b) shall apply for purposes of determining the present
                values of accrued benefits and the amounts of account balances of
                Participants as of the distribution date.

            

    

    

    
      	 	
              (i)

            	
              Distributions
                during year ending on the Determination Date.
                The present values of accrued benefits and the amounts of account
                balances
                of a Participant as of the Determination Date shall be increased
                by the
                distributions made with respect to the Participant under the Plan
                and any
                Plan aggregated with the Plan under Section 416(g)(2) of the Code
                during
                the 1-year period ending on the Determination Date. The preceding
                sentence
                shall also apply to distributions under a terminated plan which,
                had it
                not been terminated, would have been aggregated with the Plan under
                Section 416(g)(2)(A)(i) of the Code. In the case of a distribution
                made
                for a reason other than separation from service, death or disability,
                this
                provision shall be applied by substituting “5-year
                period”
                for “1-year period.” 

            

    

    

    
      	 	
              (ii)

            	
              Participants
                not performing services during the year ending on the Determination
                Date.
                The accrued benefits and accounts of any individual who has not performed
                services for the Employer during the 1-year period ending on the
                Determination Date shall not be taken into
                account.

            

    

    

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

       

    

    Section
      14.02  
Plan
      Modifications Upon Becoming Top-Heavy.

    

    
      	(a)	
              Minimum
                Accruals. Section
                5.04 of the Plan will be modified to provide that the aggregate amount
                of
                Employer contributions allocated in each Plan Year to the Accounts
                of each
                Participant who is a non-Key Employee (as defined under Section 416(i)(1)
                of the Code), and who is employed by an Employer as of the last day
                of the
                Plan Year, may not be less than the lesser
                of:

            

    

    

    
      	
            	(i)	
              three
                percent (3%) of his Compensation for the Plan Year;
                and

            

    

    

    
      	
            	(ii)	
              a
                percentage of his Compensation equal to the largest percentage obtained
                by
                dividing the sum of the amount credited to the Accounts of any Key
                Employee by that Key Employee’s
                Compensation.

            

    

    

    
      	(b)	
              The
                preceding provision will remain in effect for the period in which
                the Plan
                is top-heavy. If, for any particular year thereafter, the Plan is
                no
                longer top-heavy, the provisions contained in this Section 14.02
                shall
                cease to apply, except that any previously vested portion of any
                Account
                balance shall remain
                nonforfeitable.

            

    

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

     

    
       

       

       

       

       

       

       

       

       

       

      TRUST
        AGREEMENT

      

      BETWEEN

      

      DELANCO
        FEDERAL SAVINGS BANK

      

      AND

      

      [TRUSTEE]

      

      FOR
        THE

      

      DELANCO
        FEDERAL SAVINGS BANK

      EMPLOYEE
        STOCK OWNERSHIP PLAN TRUST

      
 

      

      Effective
        as of ________, 2007

       

       

       

       

       

       

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      CONTENTS

      

      
        	
                 

              	
                 

              	
                Page
                  No.

              
	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              
	
                Section
                  1

              	
                Creation
                  of Trust

              	
                1

              
	
                 

              	
                 

              	
                 

              
	
                Section
                  2

              	
                Investment
                  of Trust Fund and Administrative Powers of the
                  Trustee

              	
                2

              
	
                 

              	
                 

              	
                 

              
	
                Section
                  3

              	
                Compensation
                  and Indemnification of Trustee and Payment of
                  Expenses and Taxes

              	
                7
                  

              
	 	 	 
	
                Section
                  4

              	
                Records
                  and Valuation

              	
                8

              
	
                 

              	
                 

              	
                 

              
	
                Section
                  5

              	
                Instructions
                  from Committee

              	
                9

              
	
                 

              	
                 

              	
                 

              
	
                Section
                  6

              	
                Change
                  of Trustee

              	
                10

              
	
                 

              	
                 

              	
                 

              
	
                Section
                  7

              	
                Miscellaneous

              	
                10

              

      

       

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

       

      This
        TRUST
        AGREEMENT
        dated as
        of ____________, 2007 between DELANCO
        FEDERAL SAVINGS BANK, with
        its
        administrative office at 615
        Burlington Avenue, Delanco, New Jersey 08075
        (hereinafter called the “Company”), and [TRUSTEE], with
        its
        administrative office at _________________________ (hereinafter called the
        “Trustee”).

      

      W
        I T N E
        S S E T H  T H A T:

       

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

      

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

      

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

      

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

      

      Section
        1. Creation
        of Trust.

      

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

      

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

      

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

      

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

      

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

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      

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

      

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

      

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

      

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

      

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

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

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

      

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

      

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

      

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

      

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

      

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

      

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

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      

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

      

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

      

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

      

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

      

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

      

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

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      

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

      

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

      

      
        	 	
                (a)

              	
                each
                  loan or installment contract is primarily for the benefit of Participants
                  and Beneficiaries of the Plan;

              

      

      
        	 	
                (b)

              	
                any
                  interest on a loan or installment contract does not exceed a reasonable
                  rate;

              

      

      
        	 	
                (c)

              	
                the
                  proceeds of any loan shall be used only to acquire Stock, to repay
                  the
                  loan, or to repay a previous loan meeting these conditions, and the
                  subject of any installment contract shall be only the Trust’s purchase of
                  Stock;

              

      

      
        	 	
                (d)

              	
                any
                  collateral pledged to a creditor by the Trustee shall consist only
                  of
                  qualifying employer securities as that term is defined under Section
                  4975(e)(8) of the Code and the creditor shall have no recourse
                  against the
                  Trust Fund except with respect to the collateral (although the
                  creditor
                  may have recourse against an Employer as
                  guarantor);

              

      

      
        	 	
                (e)

              	
                payments
                  with respect to a loan or installment contract shall be made only
                  from
                  those amounts contributed by the Employer to the Trust Fund, from
                  amounts
                  earned on such contributions, and from cash dividends received
                  on
                  unallocated Stock held by the Trust as collateral for such an obligation;
                  and

              

      

      
        	 	
                (f)

              	
                upon
                  the payment of any portion of balance due on a loan or upon any
                  installment payment, a proportionate part of any qualified employer
                  securities originally pledged as collateral for such indebtedness
                  shall be
                  released from encumbrance in accordance with Section 4.2 of the
                  Plan and
                  the Committee shall at least annually advise the Trustee of the
                  number of
                  shares of Stock so released and the proper allocation of such shares
                  under
                  the terms of the Plan;

              

      

      

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

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

         

      

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

      

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

      

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

      

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

      

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

      

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

      

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

      

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

       

      
        
          
          

        

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

      

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

      

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

      

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

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      

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

      

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

      

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

      

      Section
        4. Records
        and Valuation.

      

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

      

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

       

       

      
        
          
          

        

        
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      4.3    Discharge
        of Trustee.
        Ninety
        (90) days after the filing of any balance sheet under Section 4.2 or any
        accounting under Section 6, the Trustee shall be forever released and discharged
        from any liability or accountability other than for gross negligence or wilful
        misconduct on the part of the Trustee to anyone with respect to the transactions
        shown or reflected in such balance sheet or accounting, except with respect
        to
        any acts or transactions as to which the Committee, within such 90-day period,
        files written objections with the Trustee. The written approval of the Committee
        of any balance sheet or accounting so filed by the Trustee, or the Committee’s
        failure to file written objections within 90 days, shall be a settlement
        of such
        balance sheet or accounting as against all persons, and shall forever release
        and discharge the Trustee from any liability of accountability to anyone
        with
        respect to the transactions shown or reflected in such balance sheet or
        accounting other than liability arising out of the Trustee’s gross negligence or
        wilful misconduct. If a statement of objections is filed by the Committee
        and
        the Committee is satisfied that its objections should be withdrawn or if
        the
        balance sheet or accounting is adjusted to its satisfaction, the Committee
        shall
        indicate its approval of the balance sheet or accounting in a written statement
        filed with the Trustee and the Trustee shall be forever released and discharged
        from any liability of accountability to anyone in accordance with the
        immediately preceding sentence. If an objection is not settled by the Committee
        and the Trustee, the Trustee may start a proceeding for a judicial settlement
        of
        the balance sheet or accounting in any court of competent jurisdictions;
        the
        only parties that need be joined in such a proceeding are the Trustee, the
        Committee, the Employer and any other parties whose participation is required
        by
        law. 

      

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

      

      Section
        5. Instructions
        from Committee.

      

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

      

      5.2    Instructions
        to Trustee.
        

      

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

       

      
        
          
          

        

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

      

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

      

      Section
        6. Change
        of Trustee.

      

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

       

      Section
        7. Miscellaneous.

      

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

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      

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

      

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

      

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

      

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

      

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

      

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

      

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

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      

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

      

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

      

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

      

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

      

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

      

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

      

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

      

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

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

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

      

      

       

      
        	
                ATTEST:

              	 	
                DELANCO
                  FEDERAL SAVINGS BANK

                 

              
	 	 	
                By: 

              	 
	 	 	 	
                For
                  the Entire Board of Directors

              

      

       

      
        	
                ATTEST:

              	 	
                [TRUSTEE]

                as
                  TRUSTEE

                 

              
	 	 	 	 
	 	 	 	 

      

      
 

       

       

       

       

       

       

       

       

       

       

      
        
          
          

        

        
          13

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