Document:

exv10w1

Exhibit 10.1

Employee Stock Ownership Plan

Of

Hudson City Savings Bank

Adopted on March 4, 1999

Effective as of October 1, 1998

Incorporating Amendments No. 1, 2, 3, 4, 5, 6 and 7

 

 

TABLE OF CONTENTS

					

	 	 	 	Page
	Article I Definitions	 	 	 	 
	 
	Section 1.1. Account
	 	 	1	 
	Section 1.2. Affiliated Employer
	 	 	1	 
	Section 1.3. Allocation Compensation
	 	 	1	 
	Section 1.4. Bank
	 	 	2	 
	Section 1.5. Board
	 	 	2	 
	Section 1.6. Beneficiary
	 	 	2	 
	Section 1.7. Break in Service
	 	 	2	 
	Section 1.8. Change in Control
	 	 	2	 
	Section 1.9. Code
	 	 	2	 
	Section 1.10. Committee
	 	 	2	 
	Section 1.11. Designated Beneficiary
	 	 	2	 
	Section 1.12. Disability
	 	 	3	 
	Section 1.13. Discretionary Contribution
	 	 	3	 
	Section 1.14. Domestic Relations Order
	 	 	3	 
	Section 1.15. Eligibility Computation Period
	 	 	4	 
	Section 1.16. Effective Date
	 	 	4	 
	Section 1.17. Eligible Employee
	 	 	4	 
	Section 1.18. Eligible Member
	 	 	4	 
	Section 1.19. Employee
	 	 	4	 
	Section 1.20. Employment Commencement Date
	 	 	4	 
	Section 1.21. Employment Recommencement Date
	 	 	4	 
	Section 1.22. ERISA
	 	 	4	 
	Section 1.23. Exchange Act
	 	 	4	 
	Section 1.24. Fair Market Value
	 	 	4	 
	Section 1.25. Financed Share
	 	 	5	 
	Section 1.26. Five Percent Owner
	 	 	5	 
	Section 1.27. Forfeitures
	 	 	5	 
	Section 1.28. Former Member
	 	 	5	 
	Section 1.29. General Investment
	 	 	5	 
	Section 1.30. Highly Compensated Employee
	 	 	5	 
	Section 1.31. Hour of Service
	 	 	6	 
	Section 1.32. Investment Account
	 	 	6	 
	Section 1.33. Investment Fund
	 	 	6	 
	Section 1.34. Loan Repayment Account
	 	 	7	 
	Section 1.35. Loan Repayment Contribution
	 	 	7	 
	Section 1.36. Maternity or Paternity Leave
	 	 	7	 
	Section 1.37. Member
	 	 	7	 
	Section 1.38. Military Service
	 	 	7	 
	Section 1.39. Named Fiduciary
	 	 	7	 
	Section 1.40. Officer
	 	 	7	 

(i)

 

	 	 	 	 	 

	 	 	 	Page
	Section 1.41. One-Year Break in Service
	 	 	7	 
	Section 1.42. Participating Employer
	 	 	7	 
	Section 1.43. Period of Service
	 	 	7	 
	Section 1.44. Period of Severance
	 	 	8	 
	Section 1.45. Plan
	 	 	8	 
	Section 1.46. Plan Administrator
	 	 	8	 
	Section 1.47. Plan Year
	 	 	8	 
	Section 1.48. Qualified Domestic Relations Order
	 	 	8	 
	Section 1.49. Qualified Military Service
	 	 	8	 
	Section 1.50. Qualified Participant
	 	 	8	 
	Section 1.51. Retirement
	 	 	8	 
	Section 1.52. Retroactive Contribution
	 	 	9	 
	Section 1.53. Share
	 	 	9	 
	Section 1.54. Share Acquisition Loan
	 	 	9	 
	Section 1.55. Share Investment Account
	 	 	9	 
	Section 1.56. Tender Offer
	 	 	9	 
	Section 1.57. Total Compensation
	 	 	9	 
	Section 1.58. Trust
	 	 	9	 
	Section 1.59. Trust Agreement
	 	 	9	 
	Section 1.60. Trust Fund
	 	 	10	 
	Section 1.61. Trustee
	 	 	10	 
	Section 1.62. Valuation Date
	 	 	10	 
	Section 1.63. Year of Eligibility Service
	 	 	10	 
	Section 1.64. Year of Vesting Service
	 	 	10	 
	Article II Membership	 	 	 	 
	 
	Section 2.1. Eligibility for Membership
	 	 	11	 
	Section 2.2. Commencement of Membership
	 	 	11	 
	Section 2.3. Termination of Membership
	 	 	12	 
	Section 2.4. Adjustments to Period of Service
	 	 	12	 
	Article III Special Provisions	 	 	 	 
	 
	Section 3.1. Military Service
	 	 	13	 
	Section 3.2. Maternity or Paternity Leave
	 	 	13	 
	Section 3.3. Leave of Absence
	 	 	14	 
	Section 3.4. Transfer Between Full-time Status and Part-time Status
	 	 	14	 
	Section 3.5. Special Provisions Applicable to Employees in the Uniformed Services
	 	 	15	 
	 
	Article IV Contributions by Members Not Permitted	 	 	 	 
	 
	Section 4.1. Contributions by Members Not Permitted
	 	 	16	 
	 
	Article V Contributions by the Employer	 	 	 	 
	 
	Section 5.1. In General
	 	 	17	 
	Section 5.2. Loan Repayment Contributions
	 	 	17	 

(ii)

 

	 	 	 	 	 

	 	 	 	Page
	Section 5.3. Discretionary Contributions
	 	 	17	 
	Section 5.4. Retroactive Contributions
	 	 	18	 
	Section 5.5. Time and Manner of Payment
	 	 	18	 
	 
	Article VI Share Acquisition Loans	 	 	 	 
	 
	Section 6.1. In General
	 	 	20	 
	Section 6.2. Collateral; Liability for Repayment
	 	 	20	 
	Section 6.3. Loan Repayment Account
	 	 	21	 
	Section 6.4. Release of Financed Shares
	 	 	21	 
	Section 6.5. Restrictions on Financed Shares
	 	 	22	 
	 
	Article VII Allocation of Contributions	 	 	 	 
	 
	Section 7.1. Allocation Among Eligible Members
	 	 	23	 
	Section 7.2. Allocation of Released Shares or Other Property
	 	 	23	 
	Section 7.3. Allocation of Discretionary Contributions
	 	 	23	 
	 
	Article VIII Limitations on Allocations	 	 	 	 
	 
	Section 8.1. Optional Limitations on Allocations
	 	 	24	 
	Section 8.2. General Limitations on Contributions
	 	 	24	 
	 
	Article IX Vesting	 	 	 	 
	 
	Section 9.1. Vesting
	 	 	29	 
	Section 9.2. Vesting on Death, Disability, Retirement or Change in Control
	 	 	29	 
	Section 9.3. Forfeitures on Termination of Employment
	 	 	30	 
	Section 9.4. Amounts Credited Upon Re-employment
	 	 	30	 
	Section 9.5. Allocation of Forfeitures
	 	 	30	 
	 
	Article X the Trust Fund	 	 	 	 
	 
	Section 10.1. The Trust Fund
	 	 	31	 
	Section 10.2. Investments
	 	 	31	 
	Section 10.3. Distributions For Diversification of Investments
	 	 	31	 
	Section 10.4. Use of Commingled Trust Funds
	 	 	32	 
	Section 10.5. Management And Control of Assets
	 	 	33	 
	 
	Article XI Valuation of Interests in the Trust Fund	 	 	 	 
	 
	Section 11.1. Establishment of Investment Accounts
	 	 	34	 
	Section 11.2. Share Investment Accounts
	 	 	34	 
	Section 11.3. General Investment Accounts
	 	 	34	 
	Section 11.4. Valuation of Investment Accounts
	 	 	34	 
	Section 11.5. Annual Statements
	 	 	35	 

(iii)

 

	 	 	 	 	 

	 	 	 	Page
	 
	Article XII Shares	 	 	 	 
	 
	Section 12.1. Specific Allocation of Shares
	 	 	36	 
	Section 12.2. Dividends
	 	 	36	 
	Section 12.3. Voting Rights
	 	 	36	 
	Section 12.4. Tender Offers
	 	 	38	 
	Article XIII
Payment of Benefits
	 	 	 	 
	Section 13.1. In General
	 	 	40	 
	Section 13.2. Designation of Beneficiaries
	 	 	40	 
	Section 13.3. Distributions to Members
	 	 	41	 
	Section 13.4. Manner of Payment
	 	 	42	 
	Section 13.5. Minimum Required Distributions
	 	 	42	 
	Section 13.6. Direct Rollover of Eligible Rollover Distributions
	 	 	44	 
	Section 13.7. Valuation of Shares Upon Distribution
	 	 	45	 
	Section 13.8. Put Options
	 	 	45	 
	Section 13.9. Right of First Refusal
	 	 	46	 
	 
	Article XIV Change in Control	 	 	 	 
	 
	Section 14.1. Definition of Change in Control; Pending Change in Control
	 	 	50	 
	Section 14.2. Vesting on Change of Control
	 	 	52	 
	Section 14.3. Repayment of Share Acquisition Loan
	 	 	52	 
	Section 14.4. Plan Termination After Change in Control
	 	 	52	 
	Section 14.5. Amendment of Section XIV
	 	 	52	 
	 
	Article XV Administration	 	 	 	 
	 
	Section 15.1. Named Fiduciaries
	 	 	53	 
	Section 15.2. Plan Administrator
	 	 	53	 
	Section 15.3. Committee Responsibilities
	 	 	54	 
	Section 15.4. Claims Procedure
	 	 	55	 
	Section 15.5. Claims Review Procedure
	 	 	56	 
	Section 15.6. Allocation of Fiduciary Responsibilities and Employment of Advisors
	 	 	56	 
	Section 15.7. Other Administrative Provisions
	 	 	57	 
	 
	Article XVI Amendment, Termination and Tax Qualification	 	 	 	 
	 
	Section 16.1. Amendment and Termination by Hudson City Savings Bank
	 	 	58	 
	Section 16.2. Amendment or Termination Other Than by Hudson City Savings Bank
	 	 	58	 
	Section 16.3. Conformity to Internal Revenue Code
	 	 	58	 
	Section 16.4. Contingent Nature of Contributions
	 	 	59	 
	 
	Article XVII Special Rules for Top Heavy Plan Years	 	 	 	 
	 
	Section 17.1. In General
	 	 	60	 
	Section 17.2. Definition of Top Heavy Plan
	 	 	60	 

(iv)

 

	 	 	 	 	 

	 	 	 	Page
	Section 17.3. Determination Date
	 	 	61	 
	Section 17.4. Cumulative Accrued Benefits
	 	 	61	 
	Section 17.5. Key Employees
	 	 	62	 
	Section 17.6. Required Aggregation Group
	 	 	63	 
	Section 17.7. Permissible Aggregation Group
	 	 	63	 
	Section 17.8. Special Requirements During Top Heavy Plan Years
	 	 	63	 
	 
	Article XVIII Miscellaneous Provisions	 	 	 	 
	 
	Section 18.1. Governing Law
	 	 	65	 
	Section 18.2. No Right to Continued Employment
	 	 	65	 
	Section 18.3. Construction of Language
	 	 	65	 
	Section 18.4. Headings
	 	 	65	 
	Section 18.5. Merger With Other Plans
	 	 	65	 
	Section 18.6. Non-alienation of Benefits
	 	 	65	 
	Section 18.7. Procedures Involving Domestic Relations Orders
	 	 	66	 
	Section 18.8. Leased Employees
	 	 	67	 
	Section 18.9. Status as an Employee Stock Ownership Plan
	 	 	68	 

(v)

 

Employee Stock Ownership Plan

Of

Hudson City Savings Bank

Article I

Definitions

          The following definitions shall apply for the purposes of the Plan, unless a different meaning
is clearly indicated by the context:

          Section 1.1. Account means an account established for each Member to which is allocated
such Member’s share, if any, of all Financed Shares and other property that are released from the
Loan Repayment Account in accordance with section 6.4, together with his share, if any, of any
Discretionary Contributions that may be made by a Participating Employer.

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

          Section 1.3. Allocation Compensation during any period means the compensation taken into
account in determining the allocation of benefits and contributions among Eligible Members and
consists of the aggregate base compensation paid to an Employee by all Participating Employers
during such period, including the amount by which such Employee’s compensation with respect to such
period has been reduced pursuant to a compensation reduction agreement under the terms of any of
the following plans which may be maintained by a Participating Employer:

     (a) a qualified cash or deferred arrangement described in section 401(k) of
the Code;

     (b) a salary reduction simplified employee pension plan described in
section 408(k) of the Code;

     (c) a tax deferred annuity plan described in section 403(b) of the Code;

     (d) a cafeteria plan described in section 125 of the Code; or

 

 

     (e) a qualified transportation fringe benefit program described in section
132(f) of the Code.

and excluding overtime, bonuses, employer contributions (other than pursuant to a compensation
reduction agreement) to any public or private pension, retirement, savings, welfare or other
benefit plan benefits received under any such plan, and any other special form of payment. In no
event, however, shall an Employee’s Allocation Compensation for any Plan Year include any
compensation in excess of the limitation set forth in section 401(a)(17) of the Code. Such
limitation shall be $200,000 for the Plan Year beginning January 1, 2002 and shall be adjusted in
subsequent Plan Years in the manner provided in section 401(a)(17)(B) of the Code. If there are
less than twelve (12) months in the Plan Year, the section 401(a)(17) limitation shall be prorated
by multiplying such limitation by a fraction, the numerator of which is the number of months in the
Plan Year and the denominator of which is twelve (12).

          Section 1.4. Bank means Hudson City Savings Bank and any successor thereto.

          Section 1.5. Board means the Board of Directors of Hudson City Savings Bank.

          Section 1.6. Beneficiary means the person or persons designated by a Member or Former
Member or other person entitled to a benefit under the Plan, or otherwise determined to be entitled
to a benefit under the Plan. If more than one person is designated, each shall have an equal share
unless the person making the designation directed otherwise. The word “person” includes an
individual, a trust, an estate or any other person that is permitted to be named as a Beneficiary.

          Section 1.7. Break in Service means a Period of Severance of at least 365 consecutive
days.

          Section 1.8. Change in Control means an event described in section 14.1.

          Section 1.9. Code means the Internal Revenue Code of 1986 (including the corresponding
provisions of any succeeding law).

          Section 1.10. Committee means the Employee Benefit Plans Committee described in section
15.3.

          Section 1.11. Designated Beneficiary means a natural person designated by a Member or
Former Member as a Beneficiary and shall not include any Beneficiary designated by a person other
than a Member or Former Member or any Beneficiary other than a natural person. If a natural person
is the beneficiary of a trust which a Member or Former Member has named as his Beneficiary, such
natural person shall be treated as a Designated Beneficiary if: (a) the trust is a valid trust
under applicable state law (or would be a valid trust except for the fact that it does not have a
corpus); (b) the trust is irrevocable or will, by its terms, become irrevocable upon the death of the
Member or Former Member; (c) the beneficiaries of the trust who are beneficiaries

2

 

with respect to
the trust’s interest as a Beneficiary are identifiable from the terms of the trust instrument; and
(d) the following information is furnished to the Committee:

     (i) by the Member or Former Member, if any distributions are required to
be made pursuant to section 13.5 prior to the death of the Member or Former Member
and (in the case of distributions after December 31, 2002 only) the Member’s or
Former Member’s spouse is his sole primary Beneficiary, either: (A) a copy of the
trust instrument, together with a written undertaking by the Member or Former Member
to furnish to the Committee a copy of any subsequent amendment within a reasonable
time after such amendment is made; or (B)(I) a list of all of the beneficiaries of
the trust (including contingent and remainderman beneficiaries with a description of
the conditions on their entitlement); (II) a certification of the Member or Former
Member to the effect that, to the best of his knowledge, such list is correct and
complete and that the conditions of section 1.11(a), (b) and (c) are satisfied;
(III) a written undertaking to provide a new certification to the extent that an
amendment changes any information previously certified; and (IV) a written
undertaking to furnish a copy of the trust instrument to the Committee on demand;
and

     (ii) by the trustee of the trust within nine months after the death of the
Member or Former Member (prior to January 1, 2003), or by October 31st of the first
calendar year that begins after the death of the Member or Former Member (subsequent
to December 31, 2002), if any distributions are required to be made pursuant to
section 13.5 after the death of the Member or Former Member, either: (A) a copy of
the actual trust instrument for the trust; or (B)(I) a final list of all of the
beneficiaries of the trust (including contingent and remainderman beneficiaries with
a description of the conditions on their entitlement) as of the date of death (prior
to January 1, 2003) or as of September 30th of the first calendar year that begins
after the date of death (subsequent to December 31, 2002); (II) a certification of
the trustee to the effect that, to the best of his knowledge, such list is correct
and complete and that the conditions of section 1.11(a), (b) and (c) are satisfied;
and (III) a written undertaking to furnish a copy of the trust instrument to the
Committee on demand.

          Section 1.12. Disability means a condition of total incapacity, mental or physical, for
further performance of duty with all Participating Employers, which the Committee shall have
determined, on the basis of competent medical evidence, is likely to be permanent.

          Section 1.13. Discretionary Contribution means Shares or amounts of money contributed to
the Plan by the Participating Employers in accordance with section 5.3.

          Section 1.14. Domestic Relations Order means a judgment, decree or order (including the
approval of a property settlement) that is made pursuant to a state domestic relations or community
property law and relates to the provision of child support, alimony payments, or marital property
rights to a spouse, child or other dependent of a Member or Former Member.

3

 

          Section 1.15. Eligibility Computation Period with respect to any Employee means: (a) the
12-consecutive-month period beginning on such Employee’s Employment Commencement Date or Employment
Recommencement Date; and (b) each Plan year beginning after such Employee’s Employment Commencement
Date or Employment Recommencement Date and before a Break in Service.

          Section 1.16. Effective Date means October 1, 1998.

          Section 1.17. Eligible Employee means an Employee who is eligible for membership in the
Plan in accordance with Article II.

          Section 1.18. Eligible Member means, for any Plan Year, an Employee who is a Member during
all or any part of such Plan Year and either remains a Member on the last day of such Plan Year or
terminated membership during such Plan Year on account of termination of employment due to death,
Disability or Retirement; provided, however, that no Employee shall be an Eligible Member for the
Plan Year that includes the effective date of the transaction pursuant to which the Bank becomes a
wholly owned subsidiary of Hudson City Bancorp, Inc. if he terminates employment for any reason
with all Participating Employers prior to such effective date.

          Section 1.19. Employee means any person, including an officer, who is employed by any
Affiliated Employer.

          Section 1.20. Employment Commencement Date means the date on which a person first performs
an Hour of Service, except that if an Employee separates from service with all Affiliated
Employers, incurs a Break in Service and subsequently returns to service with any Affiliated
Employer, his Employment Commencement Date shall be the date on which he first performs an Hour of
Service following the Break in Service.

          Section 1.21. Employment Recommencement Date means the date upon which an Employee is
first credited with an Hour of Service after a Break in Service.

          Section 1.22. ERISA means the Employee Retirement Income Security Act of 1974, as amended
from time to time (including the corresponding provisions of any succeeding law).

          Section 1.23. Exchange Act means the Securities Exchange Act of 1934, as amended from time
to time (including the corresponding provisions of any succeeding law).

          Section 1.24. Fair Market Value on any date means:

     (a) with respect to a Share:

     (i) the final quoted sale price on the date in question (or, if
there is no reported sale on such date, on the last preceding date on which
any reported sale occurred) as reported in the principal consolidated
reporting system with respect to securities listed or admitted to trading on

4

 

the principal United States securities exchange on which like Shares are
listed or admitted to trading; or

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

     (iii) if sections 1.24(a)(i) and (ii) are not applicable, the fair
market value of a Share as determined by an appraiser independent of the
Employer and experienced and expert in the field of corporate appraisal.

     (b) with respect to property other than Shares, the fair market value
determined in the manner determined by the Trustee.

          Section 1.25. Financed Share means: (a) a Share that has been purchased with the proceeds
of a Share Acquisition Loan, that has been allocated to the Loan Repayment Account in accordance
with section 6.3 and that has not been released in accordance with section 6.4; or (b) a Share that
constitutes a dividend paid with respect to a Share described in section 1.25(a), that has been
allocated to the Loan Repayment Account in accordance with section 6.3 and that has not been
released in accordance with section 6.4.

          Section 1.26. Five Percent Owner means, for any Plan Year, a person who, during such Plan
Year, owned (or was considered as owning for purposes of section 318 of the Code): (a) more than 5%
of the value of all classes of outstanding stock of any Affiliated Employer; or (b) stock
possessing more than 5% of the combined voting power of all classes of outstanding stock of any
Affiliated Employer.

          Section 1.27. Forfeitures means the amounts forfeited by Members and Former Members on
termination of employment prior to full vesting, pursuant to section 9.3, less amounts credited because of
re-employment, pursuant to section 9.4.

          Section 1.28. Former Member means a Member whose participation in the Plan has terminated
pursuant to section 2.3.

          Section 1.29. General Investment Account means an Investment Account established and
maintained in accordance with Article XI.

          Section 1.30. Highly Compensated Employee means, for any Plan Year, an Employee who:

     (i) was a Five Percent Owner at any time during such Plan Year or
any prior Plan Year; or

     (ii) received Total Compensation during the immediately preceding
Plan Year (A) in excess of $80,000 (or such other amount as

5

 

may be
prescribed by the Secretary of the Treasury pursuant to section 401(a)(17)
of the Code); and (B) if elected by the Plan Administrator in such form and
manner as the Secretary of the Treasury may prescribe, in excess of the
Total Compensation received for such preceding Plan Year by at least 80% of
the Employees.

The determination of who is a Highly Compensated Employee will be made in accordance with section
414(q) of the Code and the regulations thereunder.

          Section 1.31. Hour of Service means each hour for which a person is paid, or entitled to
payment, for the performance of duties for any Affiliated Employer, plus, solely for the purpose of
computing the Years of Eligibility Service of an Employee who is classified as a part-time
Employee:

     (a) each hour for which such person is paid, or entitled to payments by an
Affiliated Employer on account of a period during which no duties are performed due
to vacation, holiday, illness, incapacity (including disability), layoff, jury duty,
military duty, or leave of absence. Hours under this section 1.31(a) shall be
calculated and credited pursuant to section 2530.200b-2 of the Department of Labor’s
regulations (or any successor regulation), which are incorporated herein by
reference; and

     (b) each hour for which back pay, irrespective of mitigation of damages, is
either awarded or agreed to by any Affiliated Employer; provided, however, that such
hours have not previously been credited under other provisions of this section 1.31;
and provided, further, that not more than 501 Hours of Service shall be credited
under section 1.31(a) to such person on account of a single continuous period during
which such person performs no duties for an

Affiliated Employer whether or not such period occurs in a single Plan Year.
Hours under this section 1.31(b) shall be credited to the person for the Eligibility
Computation Period or Eligibility Computation Periods to which the award or
agreement pertains, rather than the Eligibility Computation Period in which the
award, agreement or payment is made. Anything in this section 1.31 to the contrary notwithstanding, no Hours of Service shall be
credited for a payment made or due under a plan maintained solely for the purpose of complying with
applicable workmen’s compensation or disability insurance laws, or a payment which solely
reimburses any person for medical or medically-related expenses incurred by such person.

          Section 1.32. Investment Account means either a General Investment Account or a Share
Investment Account.

          Section 1.33. Investment Fund means any one of the three or more funds as may be
established from time to time by the Committee which, together with any and all Shares and other
investments held under the Plan, constitute the Trust Fund.

6

 

          Section 1.34. Loan Repayment Account means an account established and maintained in
accordance with section 6.3.

          Section 1.35. Loan Repayment Contribution means amounts of money contributed to the Plan
by the Participating Employers in accordance with section 5.2.

          Section 1.36. Maternity or Paternity Leave means a person’s absence from work for all
Affiliated Employers: (a) by reason of the pregnancy of such person; (b) by reason of the birth of
a child of such person; (c) by reason of the placement of a child with the person in connection
with the adoption of such child by such person; or (d) for purposes of caring for a child of such
person immediately following the birth of the child or the placement of the child with such person.

          Section 1.37. Member means any person who has satisfied the eligibility requirements set
forth in section 2.1, who has become a Member in accordance with section 2.2, and whose membership
has not terminated under section 2.3.

          Section 1.38. Military Service means service in the armed forces of the United States,
including but not limited to Qualified Military Service. It may also include, if and to the extent
that the Board so provides and if all Members and Former Members in like circumstances are
similarly treated, special service for the government of the United States and other public
service.

          Section 1.39. Named Fiduciary means any person, committee, corporation or organization as
described in section 15.1.

          Section 1.40. Officer means an Employee who is an administrative executive in regular and
continued service with any Affiliated Employer; provided, however, that at no time shall more than
the lesser of (a) 50 Employees or (b) the greater of (i) 3 Employees or (ii) 10% of all Employees
be treated as Officers. The determination of whether an Employee is to be considered an Officer
shall be made in accordance with section 416(i) of the Code.

          Section 1.41. One-Year Break in Service means an Eligibility Computation Period during
which an Employee fails to complete more than 500 Hours of Service.

          Section 1.42. Participating Employer means the Bank, and any successor thereto and any
other Affiliated Employer which, with the prior written approval of the Board of Directors of
Hudson City Savings Bank and subject to such terms and conditions as may be imposed by the Board of
Directors of Hudson City Savings Bank, shall adopt this Plan.

          Section 1.43. Period of Service means a period of consecutive days commencing on a
person’s Employment Commencement Date and ending on the date a Period of Severance begins, with any
adjustments required under section 2.4. Except as otherwise provided in the Plan, a Period of
Service “of year(s)” means the quotient of the Period of Service divided by 365, and any fractional
part of a year shall for such purposes be disregarded.

7

 

          Section 1.44. Period of Severance means a period of consecutive days commencing with the
earlier of:

     (a) the date on which a person terminates service with all Affiliated
Employers by reason of resignation, retirement, discharge or death; or

     (b) the first anniversary of the date on which a person terminates service
with the Bank and all Affiliated Employers for any other reason, including layoff,
disability, leave of absence or any other cessation of service not otherwise
included as service under the Plan;

and ending on the first date following such separation from service on which such person performs
an Hour of Service.

          Section 1.45. Plan means the Employee Stock Ownership Plan of Hudson City Savings Bank, as
amended from time to time.

          Section 1.46. Plan Administrator means the Committee or any person, committee, corporation
or organization
designated in section 15.2, or appointed pursuant to section 15.2, to perform the
responsibilities of that office.

          Section 1.47. Plan Year means (a) for periods commencing on or after October 1, 1998 and
ending prior to October 1, 2002, the period commencing on October 1 and ending on the next
following September 30, (b) the period commencing on October 1, 2002 and ending on December 31,
2002 and (c) thereafter, the period commencing on January 1 and ending on the next following
December 31.

          Section 1.48. Qualified Domestic Relations Order means a Domestic Relations Order that:
(a) clearly specifies (i) the name and last known mailing address of the Member or Former Member
and of each person given rights under such Domestic Relations Order, (ii) the amount or percentages
of the Member’s or Former Member’s benefits under this Plan to be paid to each person covered by
such Domestic Relations Order, (iii) the number of payments or the period to which such Domestic
Relations Order applies, and (iv) the name of this Plan; and (b) does not require the payment of a
benefit in a form or amount that is (i) not otherwise provided for under the Plan, or (ii)
inconsistent with a previous Qualified Domestic Relations Order.

          Section 1.49. Qualified Military Service means with respect to any person on any date, any
service in the uniformed services of the United States (as defined in chapter 43 of Title 38 of the
United States Code) completed prior to such date, but only if, on such date, such person is
entitled to re-employment rights with respect to an Affiliated Employer on account of such service.

          Section 1.50. Qualified Participant means a Member who has attained age 55 and who has
been a Member of the Plan for at least 10 years.

          Section 1.51. Retirement means: (a) any termination of membership in the Plan at or after
attainment of age 65; and (b) any retirement under an applicable qualified defined

8

 

benefit plan of
the Employer as in effect from time to time with entitlement to a normal or early (but not vested,
whether immediate or deferred) retirement allowance.

          Section 1.52. Retroactive Contribution means a contribution made on a retroactive basis in
respect of a period of Qualified Military Service in accordance with section 5.4.

          Section 1.53. Share means a share of any class of stock issued by any Affiliated Employer;
provided that such share is a “qualifying employer security” within the meaning of section 409(l)
of the Code and section 407(d)(5) of ERISA.

          Section 1.54. Share Acquisition Loan means a loan obtained by the Trustee in accordance
with Article VI.

          Section 1.55. Share Investment Account means an Investment Account established and
maintained in accordance with Article XI.

          Section 1.56. Tender Offer means a tender offer made to holders of any one or more classes
of Shares generally, or any other offer made to holders of any one or more classes of Shares
generally to purchase, exchange, redeem or otherwise transfer Shares, whether for cash or other
consideration whether or not such offer constitutes a tender offer or an exchange offer for
purposes of the Exchange Act.

          Section 1.57. Total Compensation for any person during any period means the total
compensation paid to such person during such period by all Affiliated Employers which is required
to be reported to such person on a written statement under section 6041(d), 6051(a)(3) and 6052 of
the Code, plus any elective deferrals (within the meaning of section 402(g) of the Code) under any
qualified cash or deferred arrangement described in section 401(k) of the Code and maintained by
any Affiliated Employer, any tax-deferred annuity described in section 403(b) of the Code and
maintained by any Affiliated Employer, any salary reduction simplified employee pension plan
described in section 408(k) of the Code and maintained by any Affiliated Employer, any salary
reduction contributions under any cafeteria plan described in section 125 of the Code and
maintained by any Affiliated Employer, and any salary reduction contributions under any qualified
transportation filing benefits plan described in section 132(f) of the Code and maintained by any
Affiliated Employer. In no event shall a person’s Total Compensation for any Plan Year include any
compensation in excess the amount permitted under section 401(a)(17) of the Code. Total
Compensation shall not include any compensation paid after termination of service other than
amounts paid within 2-1/2 months thereafter that represent compensation for services performed
prior to termination of employment and would have been payable whether or not employment had
terminated.

          Section 1.58. Trust means the legal relationship created by the Trust Agreement pursuant
to which the Trustee holds the Trust Fund in trust.

          Section 1.59. Trust Agreement means the agreement between the Bank and the Trustee therein
named or its successors pursuant to which the Trust Fund shall be held in trust.

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          Section 1.60. Trust Fund means the corpus (consisting of contributions paid over to the
Trustee and investments thereof), and all earnings, appreciation or additions thereof and thereto,
held by the Trustee under the Trust Agreement in accordance with the Plan, less any depreciation
thereof and any payments made therefrom pursuant to the Plan.

          Section 1.61. Trustee means the Trustee of the Trust Fund from time to time in office. The
Trustee shall serve as Trustee until it is removed or resigns from office and is replaced by a successor Trustee appointed in
accordance with the terms of the Trust Agreement.

          Section 1.62. Valuation Date means the last business day of each Plan Year and such other
dates as the Plan Administrator may prescribe.

          Section 1.63. Year of Eligibility Service means (a) in the case of an Employee classified
as a full-time employee, a Period of Service of one year, and (b) in all other cases, an
Eligibility Computation Period during which the Employee completed at least 1,000 Hours of Service.

          Section 1.64. Year of Vesting Service means a Period of Service of one year.

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Article II

Membership

	 	 	 	Section 2.1. Eligibility for Membership.

          (a) Only Eligible Employees may be or become Members of the Plan. An Employee shall be an
Eligible Employee if he (i) is employed by one or more Participating Employers; (ii) is compensated
primarily on a salaried basis or hourly wage basis; (iii) has attained age 21; (iv) has completed
at least one Year of Eligibility Service; and (v) is not excluded under section 2.1(b).

          (b) An Employee is not an Eligible Employee if he:

     (ii) does not receive Allocation Compensation from at least one
Participating Employer;

     (iii) is an Employee who has waived any claim to participation in the Plan;

     (iv) is an Employee or in a unit of Employees covered by a collective
bargaining agreement with the Employer where retirement benefits were the subject of
good faith bargaining, unless such agreement expressly provides that Employees such
as he be covered under the Plan;

     (v) is a “leased employee” as defined in section 18.8(a);

     (vi) is compensated primarily on a daily, commission, fee or retainer
basis;

     (vii) is a building service Employee who is regularly required to spend
more than 50% of his working time servicing real estate other than the offices of
Affiliated Employers;

     (viii) is classified as an “independant contractor” by the Employer, even
if considered an employee under applicable law; or

     (ix) is a mortgage field originator.

	 	 	 	Section 2.2. Commencement of Membership.

          Every Employee who is an Eligible Employee on the effective date of the transaction whereby
the Bank becomes a wholly owned subsidiary of Hudson City Bancorp, Inc. shall automatically become
a Member as of the Effective Date. An Employee who becomes an Eligible Employee after the Effective
Date shall automatically become a Participant on the first
day of the calendar month coincident with or next following the date on which he becomes an
Eligible Employee.

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	 	 	 	Section 2.3. Termination of Membership.

          Membership in the Plan shall cease, and a Member shall become a Former Member, upon
termination of employment with all Participating Employers, death, Disability or Retirement,
failure to return to work upon the expiration of a leave of absence granted pursuant to section
3.3, becoming an Employee who is excluded under section 2.1(b) or distribution of the entire vested
interest in his Account.

	 	 	 	Section 2.4. Adjustments to Period of Service.

          (a) The Period of Service of an Employee shall include any period during which the
Employee is separated from the service of all Affiliated Employers if such period is less than 365
consecutive days measured from the date on which such Employee terminates service and ending with
the first date following such termination for which the Employee is credited with an Hour of
Service.

          (b) The Period of Service of an Employee who returns to the service of the Bank or any
Affiliated Employer following a separation from service shall commence with the first date
following such separation from service for which the Employee is credited with an Hour of Service.
The Employee shall be given credit for any Period of Service prior to such separation.

          (c) The Period of Service of an Employee who is absent on Maternity or Paternity Leave
shall exclude any period of such absence that occurs after the first anniversary of the
commencement of such absence except to the extent that such period constitutes an approved leave of
absence under section 3.3.

          (d) An Employee’s Period of Service shall also be adjusted to the extent required by the
Family and Medical Leave Act or any regulations promulgated thereunder.

          (e) Each Employee’s Period of Service shall take into account periods of employment with
any Affiliated Employer prior to the Effective Date.

          (f) Each Employee’s Period of Service shall exclude periods of employment prior to the
attainment of age 18.

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Article III

Special Provisions

	 	 	 	Section 3.1. Military Service.

          In the case of a termination of employment of any Employee to enter directly into Military
Service, the entire period of his absence shall be treated, for purposes of vesting and eligibility
for membership (but not, except as required by law, for purposes of eligibility to share in
allocations of contributions in accordance with Article VII), as if he had continued employment
during the period of his absence. In the event of the re-employment of such person by any
Affiliated Employer within a period of not more than six months:

     (a) after he becomes entitled to release or discharge, if he has entered
into the uniformed services of the United States;

     (b) release from hospitalization continuing after discharge from the
uniformed services of the United States for a period of not more than one year; or

     (c) after such service terminates, if he has entered into other service
defined as Military Service;

     such period, also, shall be deemed to be Military Service.

     Section 3.2. Maternity or Paternity Leave.

          (a) Subject to this section 3.2, in the event of an Employee’s absence from work in the
service of all Affiliated Employers for a period in excess of one year that commences on or after
October 1, 1985 and that constitutes Maternity or Paternity Leave for which the person is not paid
or entitled to payment by the Employer or any Affiliated Employer then solely for purposes of
determining when a Break in Service has occurred or when a Period of Severance of five years has
occurred, the period of such an absence commencing on the first anniversary of such absence and
ending on the second anniversary of the commencement of such absence (or, if earlier, on the last
day of such absence) shall not be treated as a Period of Severance. In addition, solely for
purposes of determining whether a One-Year Break in Service has occurred, the Employee shall be
credited for the period of absence with the number of Hours of Service equal to the lesser of:

     (a) (i) the number of Hours of Service that would have been credited to the
Employee if he had continued working for an Affiliated Employer during the period of such
absence, or (ii) if the number of Hours of Service prescribed under section 3.2(a)(i) cannot
be determined, 8 Hours of Service for each working day during the period of absence, or

     (b) 501 Hours of Service.

13

 

Such credit shall be given during the Eligibility Computation Period in which such absence began,
if necessary to prevent a One-Year Break in Service from occurring during such Eligibility
Computation Period, and in all other cases, such credit shall be given during the immediately
following Eligibility Computation Period.

          (c) Notwithstanding anything in the Plan to the contrary, this section 3.2 shall not apply
unless the person furnishes to the Plan Administrator such information as the Plan Administrator
may reasonably require in order to establish: (i) that the person’s absence is one described in
section 3.2(a); (ii) the number of working days during such absence and (iii) the number of Hours
of Service ordinarily credited on each such working day.

          Section 3.3. Leave of Absence.

          In the event of temporary absence from work in the service of all Affiliated Employers for any
period of two years or less for which an Employee shall have been granted a leave of absence by a
Participating Employer, the entire period of his absence shall be treated for purposes of vesting
and eligibility for membership (but not for purposes of eligibility to share in the allocation of
contributions in accordance with Article VII), as if he had continued employment during the period
of his absence. Absence from work for a period greater than, or failure to return to work upon the
expiration of, the period of leave of absence granted by the Employer shall terminate membership in
the Plan as of the date on which such period ended. In granting leaves of absence for purposes of
the Plan, all Employees in like circumstances shall be similarly treated.

          Section 3.4. Transfer Between Full-time Status and Part-time Status.

          (a) In the event an Employee who is classified as a part-time Employee is reclassified as
a full-time Employee, his years of Eligibility Service shall include (i) his Years of Eligibility
Service determined as of the last day of the last Eligibility Computation Period to end before the
date of the reclassification; plus (ii) if he completes at least 1,000 Hours of Service during the
Eligibility Period in which the reclassification occurs, one Year of Eligibility Service for such
Eligibility Computation Period and if he does not complete at least 1,000 Hours of Service during
such Eligibility Computation Period, his Period of Service completed during such Eligibility
Computation Period; plus (iii) his Period of Service completed following the last day of the
Eligibility Computation Period in which the reclassification occurs.

          (b) In the event an Employee who is classified as a full-time Employee is reclassified as
a part-time Employee, his Years of Eligibility Service shall include (i) his Period of Service
determined as of the last day of the last Eligibility Computation Period to end before the date of
the reclassification; plus (ii) if he completes at least 1,000 Hours of Service during the
Eligibility Computation Period in which the reclassification occurs, one Year of Eligibility
Service for such Eligibility Computation Period and if he does not complete at least 1,000 Hours of
Service during such Eligibility Computation Period, his Period of Service completed during
such Eligibility Computation Period; plus (c) his Years of Eligibility Service completed
following the last day of the Eligibility Computation Period in which the reclassification occurs.

14

 

          Section 3.5. Special Provisions Applicable to Employees in the Uniformed Services.

          (a) In the case of an Employee who terminates employment to enter into qualified military
service and is re-employed pursuant to his re-employment rights under chapter 38 of Title 38 of the
United States Code: (i) the Employee shall not be treated as having incurred a break in service by
reason of the qualified military service; and (ii) the period of qualified military service shall
be treated as a period of employment with for purposes of vesting and benefit accrual.

          (b) In the case of an Employee who terminates employment with to enter into qualified
military service and who, after December 31, 2007, dies while performing such qualified military
service, for purposes of determining the benefits due to the Employee’s Beneficiary, the Employee
shall be regarded as having resumed employment pursuant to his re-employment rights under chapter
38 of Title 38 of the United States Code on the day before his death and as having terminated
employment with the Employer on the date of his actual death.

          (c) In the case of an Employee who terminates employment to enter into qualified military
service and who, after December 31, 2007, suffers a Disability while performing such qualified
military service, for purposes of determining the benefits due to the Employee or the Employee’s
Beneficiary, the Employee shall be regarded as having resumed employment pursuant to his
re-employment rights under chapter 38 of Title 38 of the United States Code on the day before his
Disability arises and as having terminated employment with the Employer on the date of his actual
Disability.

          (d) This section 3.5 shall be interpreted, administered and enforced in accordance with
sections 401(a)(37) and 414(u) of the Code and regulations thereunder.

15

 

Article IV

Contributions by Members Not Permitted

          Section 4.1. Contributions by Members Not Permitted.

          Members shall not be required, nor shall they be permitted, to make contributions to the Plan.

16

 

Article V

Contributions by the Employer

          Section 5.1. In General.

          Subject to the limitations of Article VIII, for each Plan Year, the Participating Employers
shall contribute to the Plan the amount, if any, determined by the Board of Directors of Hudson
City Savings Bank, but in no event less than the amount described in section 5.2(a). The amount
contributed for any Plan Year shall be treated as a Loan Repayment Contribution, a Discretionary
Contribution, or a combination thereof, in accordance with the provisions of this Article V.

          Section 5.2. Loan Repayment Contributions.

          For each Plan Year, a portion of the Participating Employers’ contributions, if any, to the
Plan equal to the sum of:

     (a) the minimum amount required to be added to the Loan Repayment Account
in order to provide adequate funds for the payment of the principal and interest
then required to be repaid under the terms of any outstanding Share Acquisition Loan
obtained by the Trustee; plus

     (b) the additional amount, if any, designated by the Committee to be
applied to the prepayment of principal or interest under the terms of any
outstanding Share Acquisition Loan obtained by the Trustee;

shall be treated as a Loan Repayment Contribution for such Plan Year. A Loan Repayment Contribution
for a Plan Year shall be allocated to the Loan Repayment Account and shall be applied by the
Trustee, in the manner directed by the Committee, to the payment of accrued interest and to the
reduction of the principal balance of any Share Acquisition Loan obtained by the Trustee that is
outstanding on the date on which the Loan Repayment Contribution is made. To the extent that a Loan
Repayment Contribution for a Plan Year results in a release of Financed Shares in accordance with
section 6.4, such Shares shall be allocated among the Accounts of Eligible Members for such Plan
Year in accordance with section 7.2.

          Section 5.3. Discretionary Contributions.

          In the event that the amount of the Participating Employers’ contributions to the Plan for a
Plan Year exceeds the amount of the Loan Repayment Contributions for such Plan Year, such excess
shall be treated as a Discretionary Contribution and shall be allocated among the Accounts of the
Eligible Members for such Plan Year in accordance with section 7.3.

17

 

          Section 5.4. Retroactive Contributions.

          A Participating Employer shall make a Retroactive Contribution in respect of any individual
previously employed by it who is re-employed by any Affiliated Employer after December 12, 1994
following the completion of a period of Qualified Military Service. Such Retroactive Contribution
shall be made in the following manner for each Plan Year that includes any part of the period of
Qualified Military Service:

     (a) An allocation percentage shall be computed by dividing (i) the sum of
the Fair Market Value of all Financed Shares allocated to Eligible Members for such
Plan Year plus the dollar amount of all Discretionary Contributions made in cash for
such Plan Year plus the Fair Market Value of all Discretionary Contributions made in
Shares for such Plan Year, divided by (ii) the aggregate amount of Allocation
Compensation used in the allocation for such Plan Year. Fair Market Value for such
purposes shall be determined as of the last day of the Plan Year.

     (b) A notional allocation shall be determined by multiplying (A) the
percentage determined under section 5.4(a) by (B) the Allocation Compensation which
the individual would have had for such Plan Year if he had remained in the service
of his Participating Employer in the same capacity and earning Allocation
Compensation and Total Compensation at the annual rates in effect immediately prior
to the commencement of the Qualified Military Leave (or, if such rates are not
reasonably certain, at an annual rate equal to the actual Allocation Compensation
and Total Compensation, respectively, paid to him for the 12-month period
immediately preceding the Qualified Military Service).

     (c) An actual Retroactive Contribution for the Plan Year shall be
determined by computing the excess of (A) the notional allocation determined under
section 5.4(b) over (B) the sum of the dollar amount of any Discretionary
Contribution in cash, the Fair Market Value of any Discretionary Contribution in
Shares and the Fair Market Value of any Financed Shares actually allocated to such
individual for such Plan Year.

          Section 5.5. Time and Manner of Payment.

          (a) Payment of contributions made pursuant to this Article V shall be made: (i) in cash,
in the case of a Loan Repayment Contribution; and (ii) in cash, in Shares or in a combination of
cash and Shares, in the case of a Discretionary Contribution or a Retroactive Contribution.

          (b) Contributions made pursuant to this Article V for a Plan Year shall be paid to the
Trust Fund on or before the due date (including any extensions thereof) of the Employer’s federal
income tax return for its taxable year during which such Plan Year ends. All such
contributions shall be allocated to the Accounts of the Eligible Members in the case of a
Discretionary Contribution, to the Account of the Member for whom it is made in the case of a
Retroactive Contribution, and to the Loan Repayment Account in the case of a Loan Repayment
Contribution, as soon as is practicable following the payment thereof to the Trust Fund.

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Article VI

Share Acquisition Loans

          Section 6.1. In General.

          The Committee may, with the prior approval of the Board of Directors of Hudson City Savings
Bank, direct the Trustee to obtain a Share Acquisition Loan on behalf of the Plan, the proceeds of
which shall be applied on the earliest practicable date:

     (a) to purchase Shares; or

     (b) to make payments of principal or interest, or a combination of
principal and interest, with respect to such Share Acquisition Loan; or

     (c) to make payments of principal and interest, or a combination of
principal and interest, with respect to a previously obtained Share Acquisition Loan
that is then outstanding.

Any such Share Acquisition Loan shall be obtained on such terms and conditions as the Committee may
approve; provided, however, that such terms and conditions shall provide for the payment of
interest at no more than a reasonable rate and shall permit such Share Acquisition Loan to satisfy
the requirements of section 4975(d)(3) of the Code and section 408(b)(3) of ERISA.

          Section 6.2. Collateral; Liability for Repayment.

          (a) The Committee may direct the Trustee to pledge, at the time a Share Acquisition Loan
is obtained, the following assets of the Plan as collateral for such Share Acquisition Loan:

     (i) any Shares purchased with the proceeds of such Share Acquisition Loan
and any earnings attributable thereto;

     (ii) any Financed Shares then pledged as collateral for a prior Share
Acquisition Loan which is repaid with the proceeds of such Share Acquisition Loan
and any earnings attributable thereto; and

     (iii) pending the application thereof to purchase Shares or repay a prior
Share Acquisition Loan, the proceeds of such Share Acquisition Loan and any earnings
attributable thereto.

Except as specifically provided in this section 6.2(a), no assets of the Plan shall be pledged as
collateral for the repayment of any Share Acquisition Loan.

          (b) No person entitled to payment under a Share Acquisition Loan shall have any right to
the assets of the Plan except for:

19

 

     (i) Financed Shares that have been pledged as collateral for such Share
Acquisition Loan pursuant to section 6.2(a);

     (ii) Loan Repayment Contributions made pursuant to section 5.2; and

     (iii) earnings attributable to Financed Shares described in section
6.2(b)(i) and to Loan Repayment Contributions described in section 6.2(b)(ii).

Except in the event of a default or a refinancing pursuant to which an existing Share Acquisition
Loan is repaid or as provided in section 14.3, the aggregate amount of all payments of principal
and interest made by the Trustee with respect to all Share Acquisition Loans obtained on behalf of
the Plan shall at no time exceed the aggregate amount of all Loan Repayment Contributions
theretofore made plus the aggregate amount of all earnings (other than dividends paid in the form
of Shares) attributable to Financed Shares and to such Loan Repayment Contributions.

          (c) Any Share Acquisition Loan shall be without recourse against the Plan and Trust.

          Section 6.3. Loan Repayment Account.

          In the event that one or more Share Acquisition Loans shall be obtained, a Loan Repayment
Account shall be established under the Plan. The Loan Repayment Account shall be credited with all
Shares acquired with the proceeds of a Share Acquisition Loan, all Loan Repayment Contributions and
all earnings (including dividends paid in the form of Shares) or appreciation attributable to such
Shares and Loan Repayment Contributions. The Loan Repayment Account shall be charged with all
payments of principal and interest made by the Trustee with respect to any Share Acquisition Loan,
all Shares released in accordance with section 6.4 and all losses, depreciation or expenses
attributable to Shares or to other property credited thereto. The Financed Shares, as well as any
earnings thereon, shall be allocated to such Loan Repayment Account and shall be accounted for
separately from all other amounts or property contributed under the Plan.

          Section 6.4. Release of Financed Shares.

          As of the last day of each Plan Year during which a Share Acquisition Loan is outstanding, a
portion of the Financed Shares purchased with the proceeds of such Share Acquisition Loan and
allocated to the Loan Repayment Account shall be released. The number of Financed Shares released
in any such Plan Year shall be equal to the amount determined according to one of the following
methods:

     (a) by computing the product of: (i) the number of Financed Shares
purchased with the proceeds of such Share Acquisition Loan and allocated to the
Loan Repayment Account immediately before the release is effected; multiplied
by (ii) a fraction, the numerator of which is the aggregate amount of the principal
and interest payments (other than payments made upon the refinancing of a Share
Acquisition Loan as contemplated by section 6.1(c)) made with respect to such

20

 

          Share
Acquisition Loan during such Plan Year, and the denominator of which is the
aggregate amount of all principal and interest remaining to be paid with respect to
such Share Acquisition Loan as of the first day of such Plan Year; or

     (b) by computing the product of: (i) the number of Financed Shares
purchased with the proceeds of such Share Acquisition Loan and allocated to the Loan
Repayment Account immediately before the release is effected; multiplied by (ii) a
fraction, the numerator of which is the aggregate amount of the principal payments
(other than payments made upon the refinancing of a Share Acquisition Loan as
contemplated by section 6.1(c)) made with respect to such Share Acquisition Loan
during such Plan Year, and the denominator of which is the aggregate amount of all
of principal remaining to be paid with respect to such Share Acquisition Loan as of
the first day of such Plan Year; provided, however, that the method described in
this section 6.4(b) may be used only if the Share Acquisition Loan does not extend
for a period in excess of 10 years after the date of origination and only to the
extent that principal payments on such Share Acquisition Loan are made at least as
rapidly as under a loan of like principal amount with a like interest rate and term
requiring level amortization of principal and interest.

The method to be used shall be specified in the documents governing the Share Acquisition Loan or,
if not specified therein, prescribed by the Committee, in its discretion. In the event that
property other than, or in addition to, Financed Shares shall be held in the Loan Repayment Account
and pledged as collateral for a Share Acquisition Loan, then the property to be released pursuant
to this section 6.4 shall be property having a Fair Market Value determined by applying the method
to be used to the Fair Market Value of all property pledged as collateral for such Share
Acquisition Loan; provided, however, that no property other than Financed Shares shall be released
pursuant to this section 6.4 unless all Financed Shares have previously been released.

          Section 6.5. Restrictions on Financed Shares.

          Except to the extent required under any applicable law, rule or regulation, no Shares
purchased with the proceeds of a Share Acquisition Loan shall be subject to a put, call or other
option, or to any buy-sell or similar arrangement, while held by the Trustee or when distributed
from the Plan. The provisions of this section 6.5 shall continue to apply in the event that this
Plan shall cease to be an employee stock ownership plan, within the meaning of section 4975(e)(7)
of the Code.

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Article VII

Allocation of Contributions

          Section 7.1. Allocation Among Eligible Members.

          Subject to the limitations of Article VIII, Discretionary Contributions for a Plan Year made
in accordance with section 5.3 and Financed Shares and other property that are released from the
Loan Repayment Account for a Plan Year in accordance with section 6.4 shall be allocated among the
Eligible Members for such Plan Year, in the manner provided in this Article VII.

          Section 7.2. Allocation of Released Shares or Other Property.

          Subject to the limitations of Article VIII, in the event that Financed Shares or other
property are released from the Loan Repayment Account for a Plan Year in accordance with section
6.4, such released Shares or other property shall be allocated among the Accounts of the Eligible
Members in the proportion that each such Eligible Member’s Allocation Compensation (for the portion
of the Plan Year during which he was a Member) for the Plan Year in which such release occurs bears
to the aggregate of such Allocation Compensation of all Eligible Members (during the portion of the
Plan Year during which they were Members) for the Plan Year. Such allocation shall be made as of
the last day of the Plan Year in which such release occurs.

          Section 7.3. Allocation of Discretionary Contributions.

          Subject to the limitations of Article VIII, in the event that Participating Employers make
Discretionary Contributions for a Plan Year, such Discretionary Contribution shall be allocated
among the Accounts of the Eligible Members for such Plan Year in the proportion that each such
Eligible Member’s Allocation Compensation (for the portion of such year during which he was a
Member) for the Plan Year in which the Discretionary Contribution is made bears to the aggregate of
such Allocation Compensation of all Eligible Members (during the portion of the Plan Year during
which they were Members) for such Plan Year in which the Discretionary Contribution is made. Such
allocation shall be made as of the last day of the Plan Year in which such Discretionary
Contribution is made.

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Article VIII

Limitations on Allocations

          Section 8.1. Optional Limitations on Allocations.

          If, for any Plan Year, the application of sections 7.2 and 7.3 would result in more than
one-third of the number of Shares or of the amount of money or property to be allocated thereunder
being allocated to the Accounts of Eligible Members for such Plan Year who are also Highly
Compensated Employees for such Plan Year, then the Committee may, but shall not be required to,
direct that this section 8.1 shall apply in lieu of sections 7.2 and 7.3. If the Committee gives
such a direction, then the Committee shall impose a maximum dollar limitation on the amount of
Allocation Compensation that may be taken into account for each Eligible Member. The dollar
limitation which shall be imposed shall be the limitation which produces the result that the
aggregate Allocation Compensation taken into account for Eligible Member who are Highly Compensated
Employees, constitutes exactly one-third of the aggregate Allocation Compensation taken into
account for all Eligible Members.

          Section 8.2. General Limitations on Contributions.

          (a) No amount shall be allocated to a Member’s Account under this Plan for any
Limitation Year to the extent that such an allocation would result in an Annual Addition of
an amount greater than the lesser of:

     (i) For Limitation Years beginning before January 1, 2002,
(A) $30,000 (or such other amount as is permissible under section
415(c)(1)(A) of the Code) or (B) 25% of the Member’s Total
Compensation for such Limitation Year; and

     (ii) For Limitation Years beginning after December 31,
2001, (A) $40,000 (or such other amount as is permissible under
section 415(c)(1)(A) of the Code), or (B) 100% of the Member’s Total
Compensation for such Limitation Year. For purposes of subsection
(ii)(B), any contribution for medical benefits after separation from
service (within the meaning of section 401(h) or section 419A(f)(2)
of the Code) which is otherwise treated as an Annual Addition shall
not be considered part of a Member’s Total Compensation.

          (b) In the case of a Member who may be entitled to benefits under any qualified defined
benefit plan (whether or not terminated) now in effect or ever maintained by the Employer, such
Member’s Annual Additions under this Plan shall, in addition to the limitations provided under
section 8.2(a), be further limited so that the sum of the Member’s
Defined Contribution Plan Fraction plus his Defined Benefit Plan Fraction does not exceed 1.0
for any Limitation Year beginning prior to January 1, 2000; provided, however, that this

23

 

limitation
shall only apply if and to the extent that the benefits under the Employer’s qualified defined
benefit plan or any other qualified defined contribution plan of the Employer are not limited so
that such sum is not exceeded.

          (c) For purposes of this section 8.2, the following special definitions shall apply:

     (i) Annual Addition means the sum of the following amounts allocated on
behalf of a Member for a Limitation Year:

     (A) all contributions by the Employer (including contributions made
under a salary reduction agreement pursuant to sections 401(k), 408(k) or
403(b) of the Code) under any qualified defined contribution plan (other
than this Plan) maintained by the Employer, as well as the Member’s
allocable share, if any, of any forfeitures under such plans; plus

     (B) (I) for Limitation Years that begin prior to January 1, 1987,
the lesser of (1) one-half of all nondeductible voluntary contributions
under any other qualified defined contribution plan (whether or not
terminated) maintained by the Employer, or (2) the amount of the
nondeductible voluntary contributions under qualified defined contribution
plan (whether or not terminated) maintained by the Employer in excess of 6%
of such Member’s Total Compensation; and (II) for Limitation Years that
begin after December 31, 1986, the sum of all of the nondeductible voluntary
contributions under any other qualified defined contribution plan (whether
or not terminated) maintained by the Employer;

     (C) all Discretionary Contributions under this Plan;

     (D) except as hereinafter provided in this section 8.2(c)(i), a
portion of the Employer’s Loan Repayment Contributions to the Plan for such
Limitation Year which bears the same proportion to the total amount of the
Employer’s Loan Repayment Contributions for the Limitation Year that the
number of Shares (or the Fair Market Value of property other than Shares)
allocated to the Member’s Account pursuant to section 7.2 or 8.1, whichever
is applicable, bears to the aggregate number of Shares (or Fair Market Value
of property other than Shares) so allocated to all Members for such
Limitation Year; plus

     (E) amounts allocated after March 31, 1984 to an individual medical
account (within the meaning of section 415(1) of the Code) which is part of
a pension or annuity plan maintained by the Employer and amounts derived
from contributions paid or accrued after, and in a taxable year ending
after, December 31, 1985 which are attributable to post-
retirement medical benefits and allocated to a separate account of a key

24

 

employee (within the meaning of section 419A(d)(3) of the Code) under a
welfare benefit fund (within the meaning of section 419(e) of the Code).

Notwithstanding section 8.2(c)(i)(D), if, for any Limitation Year, the aggregate
amount of Discretionary Contributions allocated to the Accounts of the individuals
who are Highly Compensated Employees for such Limitation Year, when added to such
Highly Compensated Employees’ allocable share of any Loan Repayment Contributions
for such Limitation Year, does not exceed one-third of the total of all
Discretionary Contributions and Loan Repayment Contributions for such Limitation
Year, then that portion, if any, of the Loan Repayment Contributions for such
Limitation Year that is applied to the payment of interest on a Share Acquisition
Loan shall not be included as an Annual Addition. In no event shall any Financed
Shares, any dividends or other earnings thereon, any proceeds of the sale thereof or
any portion of the value of the foregoing be included as an Annual Addition.

     (ii) Employer means Hudson City Savings Bank, and all members of a
controlled group of corporations, as defined in section 414(b) of the Code, as
modified by section 415(h) of the Code, all commonly controlled trades or
businesses, as defined in section 414(c) of the Code, as modified by section 415(h)
of the Code, all affiliated service groups, as defined in section 414(m) of the
Code, of which Hudson City Savings Bank is a member, as well as any leasing
organization, as defined in section 18.8, that employs any person who is considered
an employee under section 18.8 and any other entity that is required to be
aggregated with the Employer pursuant to regulations under section 414(o) of the
Code.

     (iii) Defined Benefit Plan Fraction means, for any individual for any
Limitation Year, a fraction, the numerator of which is the Projected Annual Benefit
(determined as of the end of such Limitation Year) of the Member under any qualified
defined benefit plans (whether or not terminated) maintained by the Employer for the
current and all prior Limitation Years, and the denominator of which is as follows:
(A) for Limitation Years ending prior to January 1, 1983, the lesser of (I) the
dollar limitation in effect under section 415(b)(1) (A) of the Code for such
Limitation Year, or (II) the amount which may be taken into account under section
415(b)(1)(B) of the Code with respect to such Member for such Limitation Year; and
(B) in all other cases, the lesser of (I) (except as provided in section 16.8(b) for
a Top Heavy Plan Year) the product of 1.25 multiplied by the dollar limitation in
effect under section 415(b)(1)(A) of the Code for such Limitation Year, or (II) the
product of 1.4 multiplied by the amount which may be taken into account under
section 415(b)(1)(B) of the Code with respect to such Member for such Limitation
Year.

     (iv) Defined Contribution Plan Fraction means, for any individual for any
Limitation Year, a fraction (A) the numerator of which is the sum of such
individual’s Annual Additions (determined as of the end of such Limitation
Year)

25

 

under this Plan and any other qualified defined contribution plans (whether or
not terminated) maintained by the Employer for the current and all prior Limitation
Years, and (B) the denominator of which is as follows: (I) for Limitation Years
ending prior to January 1, 1983, the sum of the lesser of the following amounts for
such Limitation Year and for each prior Limitation Year during which such individual
was employed by the Employer: (1) the Maximum Permissible Amount for such Limitation
Year (without regard to section 415(c)(6) of the Code), or (2) the amount which may
be taken into account under section 415(c)(1)(B) of the Code with respect to such
individual for such Limitation Year; and (II) in all other cases, the sum of the
lesser of the following amounts for such Limitation Year and for each prior
Limitation Year during which such individual was employed by the Employer: (1)
(except as provided in section 17.8(b) for a Top Heavy Plan Year) the product of
1.25 multiplied by the Maximum Permissible Amount for such Limitation Year
(determined without regard to section 415(c)(6) of the Code), or (2) the product of
1.4 multiplied by the amount which may be taken into account under section
415(c)(1)(B) of the Code (or section 415(c)(7) of the Code, if applicable) with
respect to such individual for such Limitation Year; provided, however, that the
Plan Administrator may, at his election, adopt the transition rule set forth in
section 415(e)(6) of the Code in making the computation set forth in this section
8.2(c)(iv). If the sum of an individual’s Defined Benefit Plan Fraction and Defined
Contribution Plan Fraction exceeded 1.0 as of September 30, 1983, then such
individual’s Defined Contribution Plan Fraction shall be determined under
regulations to be prescribed by the Secretary of the Treasury so that the sum of
the fractions does not exceed 1.0.

     (v) Limitation Year means the Plan Year.

     (vi) Maximum Permissible Amount means (A) $25,000 (or such higher amount as
may be permitted under section 415(d) of the Code because of cost of living
increases) for Limitation Years beginning prior to January 1, 1983, and (B) the
greater of (I) $30,000, or (II) 25% of the dollar limitation in effect under section
415(b)(1)(A) of the Code for Limitation Years beginning on or after January 1, 1983
and prior to January 1, 1994, and (C) the lesser of (I) $30,000 (or such higher
amount as may be permitted under section 415(d) of the Code because of cost of
living increases) or (II) the percentage limitation in effect under section
415(c)(1)(B) of the Code for Limitation Years beginning on or after January 1, 1995.

     (vii) Projected Annual Benefit means an individual’s annual retirement
benefit (adjusted to the actuarial equivalent of a straight life annuity if
expressed in a form other than a straight life or qualified joint and survivor
annuity) under any qualified defined benefit plan maintained by the Employer,
whether or not terminated, assuming that the individual will continue employment
until the later of such individual’s current age or normal retirement age under such
plan, and that the individual’s Total Compensation for the Limitation Year and all
other

26

 

relevant factors used to determine benefits under such plan will remain
constant for all future Limitation Years.

     (d) When an individual’s Annual Addition to this Plan must be reduced to
satisfy the limitations of section 8.2(a) or (b), such reduction shall be applied to
Discretionary Contributions and to Shares allocated as a result of a Loan Repayment
Contribution which are included as an Annual Addition in such order as shall result
in the smallest reduction in the number of Shares allocable to the Member’s Account.
The amount by which any Member’s Annual Addition to this Plan is reduced shall be
allocated in accordance with Articles V and VII as a contribution by the
Participating Employers in the next succeeding Limitation Year.

     (e) Prior to determining an individual’s actual Total Compensation for a
Limitation Year, the Participating Employer may determine the limitations under this
section 8.2 for an individual on the basis of a reasonable estimation of the
individual’s Total Compensation for the Limitation Year that is uniformly determined
for all individuals who are similarly situated. As soon as it is administratively
feasible after the end of the Limitation Year, the limitations of this section 8.2
shall be determined on the basis of the individual’s actual Total Compensation for
the Limitation Year.

27

 

Article IX

Vesting

          Section 9.1. Vesting.

          Subject to the provisions of sections 9.2 and 14.1(a), the balance credited to each Member’s
Account shall become vested in accordance with the following schedule:

          (a) Except as provided in section 9.1(a):

	 	 	 	 	 
	      Years of	 	 	 
	Vesting Service	 	Vested Percentage	 
	less than 1 year
	 	 	0	%
	1 year but less than 2 years
	 	 	20	%
	2 years but less than 3 years
	 	 	40	%
	3 years but less than 4 years
	 	 	60	%
	4 years but less than 5 years
	 	 	80	%
	5 or more years
	 	 	100	%

          (b) With respect to account balances attributable to contributions made for
Plan Years after the Plan Year in which any Share Acquisition Loan outstanding on
September 26, 2005 is repaid in full or, if earlier, was scheduled to be repaid in
full under its terms as in effect on September 26, 2005:

	 	 	 	 	 
	      Years of	 	 	 
	Vesting Service	 	Vested Percentage	 
	Less than 3
	 	 	0	%
	3 or more
	 	 	100	%

          Section 9.2. Vesting on Death, Disability, Retirement or Change in Control.

          Any previously unvested portion of the remainder of the balance credited to the Account of a
Member or of a person who is a Former Member solely because he is excluded from membership under
section 2.1(b) shall become fully vested in him immediately upon attainment of age 65, or, if
earlier, upon the termination of his employment with all Affiliated

28

 

Employers by reason of death, Disability, Retirement or upon the occurrence of a Change in
Control.

          Section 9.3. Forfeitures on Termination of Employment.

          Upon the termination of employment of a Member or Former Member for any reason other than
death, Disability or Retirement, that portion of the balance credited to his Account which is not
vested at the date of such termination shall be forfeited as of the last Valuation Date for the
Plan Year in which such termination of employment occurs. The proceeds of such forfeitures, less
amounts, if any, required to be credited because of re-employment pursuant to section 9.4, shall be
treated as Forfeitures and shall be disposed of as provided in section 9.5.

          Section 9.4. Amounts Credited Upon Re-employment.

          If an Employee forfeited any amount of the balance credited to his Account upon his
termination of employment, and is re-employed by any Affiliated Employer prior to the occurrence of
a Period of Severance of five years, then:

     (i) an amount equal to the Fair Market Value of the Shares forfeited,
determined as of the date of forfeiture; and

     (ii) the amount credited to his General Investment Account that was forfeited,
determined as of the date of forfeiture; shall be credited back to his Account from
the proceeds of Forfeitures which are redeemed pursuant to section 9.3 during the
Plan Year in which he is re-employed, unless such proceeds are insufficient, in
which case his Participating Employer shall make an additional contribution in the
amount of such deficiency.

          Section 9.5. Allocation of Forfeitures.

          Any Forfeitures that occur during a Plan Year shall be used to reduce the contributions
required of the Employer under the Plan and shall be treated as Loan Repayment Contributions and
Discretionary Contributions in the proportions designated by the Committee in accordance with
Article V.

29

 

Article X

the Trust Fund

          Section 10.1. The Trust Fund.

          The Trust Fund shall be held and invested under the Trust Agreement with the Trustee. The
provisions of the Trust Agreement shall vest such powers in the Trustee as to investment, control
and disbursement of the Trust Fund, and such other provisions not inconsistent with the Plan,
including provision for the appointment of one or more investment managers within the meaning of
section 3(38) of ERISA to manage and control (including acquiring and disposing of) all or any of
the assets of the Trust Fund, as the Board may from time to time authorize. Except as required by
ERISA, no bond or other security shall be required of any Trustee at any time in office.

          Section 10.2. Investments.

          Except to the extent provided to the contrary in section 10.3, the Trust Fund shall be
invested in:

     (i) Shares;

     (ii) such Investment Funds as may be established from time to time by
the Committee; and

     (iii) such other investments as may be permitted under the Trust
Agreement;

in such proportions as shall be determined by the Committee or, if so provided under the Trust
Agreement, as directed by one or more investment managers or by the Trustee, in its discretion;
provided, however, that the investments of the Trust Fund shall consist primarily of Shares.
Notwithstanding the immediately preceding sentence, the Trustee may temporarily invest the Trust
Fund in short-term obligations of, or guaranteed by, the United States Government or an agency
thereof, or may retain uninvested, or sell investments to provide, amounts of cash required for
purposes of the Plan.

          Section 10.3. Distributions For Diversification of Investments.

     (a) Notwithstanding section 10.2, each Qualified Member may:

     (i) during the first 90 days of each of the first five Plan Years to begin
after the Plan Year in which he first becomes a Qualified Member, elect that such
percentage of the balance credited to his Account as he may specify, but in no event
more than 25% of the balance credited to his Account, be either distributed to him
pursuant to this section 10.3(a)(i) or transferred to the Profit Incentive

30

 

Bonus Plan of Hudson City Savings Bank to the extent permitted by such plan,
no later than 90 days after the last day that such election may be made; and

     (ii) during the first 90 days of the sixth Plan Year to begin after the Plan
Year in which he first becomes a Qualified Member or of any Plan Year thereafter,
elect that such percentage of the balance credited to his Account as he may specify,
but in no event more than 50% of the balance credited to his Account, be either
distributed to him pursuant to this section 10.3(a)(ii) or transferred to the Profit
Incentive Bonus Plan of Hudson City Savings Bank to the extent permitted by such
plan, no later than 90 days after the last day that such election may be made.

For purposes of an election under this section 10.3, the balance credited to a Member’s Account
shall be the balance credited to his Account determined as of the last Valuation Date to occur in
the Plan Year immediately preceding the Plan Year in which such election is made and the 25% and
50% limitations shall apply to such balance after the balance has been reduced by the amount of all
amounts distributed or transferred to the Profit Incentive Bonus Plan of Hudson City Savings Bank
under this section 10.3.

     (b) An election made under section 10.3(a) shall be made in writing, in the
form and manner prescribed by the Plan Administrator, and shall be filed with the
Plan Administrator during the election period specified in section 10.3(a). As soon
as is practicable, and in no case later than 90 days following the end of the
election period during which such election is made, the Plan Administrator shall
take such actions as are necessary to cause the specified percentage of the balance
credited to the Account of the Qualified Member making the election to be
distributed to such Qualified Member.

     (c) An election made under section 10.3(a) may be changed or revoked at any
time during the election period described in section 10.3(a) during which it is
initially made. In no event, however, shall any election under this section 10.3
result in more than 25% of the balance credited to the Member’s Account being
distributed to the Member or transferred to the Profit Incentive Bonus Plan of
Hudson City Savings Bank, if such election is made during a Plan Year to which
section 10.3(a)(i) applies, or result in more than 50% of the balance distributed to
the Member or transferred to the Profit Incentive Bonus Plan of Hudson City Savings
Bank, if such election is made during the Plan Year to which section 10.3(a)(ii)
applies or thereafter.

          Section 10.4. Use of Commingled Trust Funds.

          Subject to the provisions of the Trust Agreement, amounts held in the Trust Fund may be
invested in:

     (a) any commingled or group trust fund described in section 401(a) of the Code
and exempt under section 501(a) of the Code; or

31

 

     (b) any common trust fund exempt under section 584 of the Code maintained
exclusively for the collective investment of the assets of trusts that are exempt
under section 501(a) of the Code;

provided that the trustee of such commingled, group or common trust fund is a bank or trust
company.

          Section 10.5. Management And Control of Assets.

          All assets of the Plan shall be held by the Trustee in trust for the exclusive benefit of
Members, Former Members and their Beneficiaries. No part of the corpus or income of the Trust Fund
shall be used for, or diverted to, purposes other than for the exclusive benefit of Members, Former
Members and their Beneficiaries, and for defraying reasonable administrative expenses of the Plan
and Trust Fund. No person shall have any interest in or right to any part of the earnings of the
Trust Fund, or any rights in, to or under the Trust Fund or any part of its assets, except to the
extent expressly provided in the Plan.

32

 

Article XI

Valuation of Interests in the Trust Fund 

          Section 11.1. Establishment of Investment Accounts.

          The Plan Administrator shall establish, or cause to be established, for each person for whom
an Account is maintained a Share Investment Account and a General Investment Account. Such Share
Investment Accounts and General Investment Accounts shall be maintained in accordance with this
Article XI.

          Section 11.2. Share Investment Accounts.

          The Share Investment Account established for a person in accordance with section 11.1 shall be
credited with: (a) all Shares allocated to such person’s Account; (b) all Shares purchased with
amounts of money or property allocated to such person’s Account; (c) all dividends paid in the form
of Shares with respect to Shares credited to his Account; and (d) all Shares purchased with amounts
credited to such person’s General Investment Account. Such Share Investment Account shall be
charged with all Shares that are sold or exchanged to acquire other investments or to provide cash
and with all Shares that are distributed in kind.

          Section 11.3. General Investment Accounts.

          The General Investment Account that is established for a person in accordance with section
11.1 shall be credited with: (a) all amounts, other than Shares, allocated to such person’s
Account; (b) all dividends paid in a form other than Shares with respect to Shares credited to such
person’s Share Investment Account; (c) the proceeds of any sale of Shares credited to such person’s
Share Investment Account; and (d) any earnings attributable to amounts credited to such person’s
General Investment Account. Such General Investment Account shall be charged with all amounts
credited thereto that are applied to the purchase of Shares, any losses or depreciation
attributable to amounts credited thereto, any expenses allocable thereto and any distributions of
amounts credited thereto.

          Section 11.4. Valuation of Investment Accounts.

     (a) The Plan Administrator shall determine, or cause to be determined, the
aggregate value of each person’s Share Investment Account as of each Valuation Date
by multiplying the number of Shares credited to such Share Investment Account on
such Valuation Date by the Fair Market Value of a Share on such Valuation Date.

     (b) As of each Valuation Date, the Accounts of each Member shall be separately
adjusted to reflect their proportionate share of any appreciation or depreciation in
the fair market value of the Investment Funds, any income earned by the Investment
Funds and any expenses incurred by the Investment Funds, as

33

 

well as any
contributions, withdrawals or distributions and investment transfers not posted as
of the last Valuation Date.

          Section 11.5. Annual Statements.

          There shall be furnished, by mail or otherwise, at least once in each Plan Year to each person
who would then be entitled to receive all or part of the balance credited to any Account if the
Plan were then terminated, a statement of his interest in the Plan as of such date as shall be
selected by the Plan Administrator, which statement shall be deemed to have been accepted as
correct and be binding on such person unless the Plan Administrator receives written notice to the
contrary within 30 days after the statement is mailed or furnished to such person.

34

 

Article XII

Shares

          Section 12.1. Specific Allocation of Shares.

          All Shares purchased under the Plan shall be specifically allocated to the Share Investment
Accounts of Members, Former Members and their Beneficiaries in accordance with section 11.2, with
the exception of Financed Shares, which shall be allocated to the Loan Repayment Account.

          Section 12.2. Dividends.

     (a) Dividends paid with respect to Shares held under the Plan shall be credited
to the Loan Repayment Account, if paid with respect to Financed Shares. Such
dividends shall be: (i) applied to the payment of principal and accrued interest
with respect to any Share Acquisition Loan or allocated to the Accounts of Members,
if paid in cash; or (ii) held in the Loan Repayment Account as Financed Shares for
release in accordance with section 6.4, if paid in the form of Shares.

     (b) Dividends paid with respect to Shares allocated to a person’s Share
Investment Account shall be credited to such person’s Share Investment Account. Cash
dividends credited to a person’s General Investment Account shall be, at the
direction of the Committee, either: (i) held in such General Investment Account and
invested in accordance with sections 10.2 and 11.3; (ii) distributed immediately to
such person; (iii) distributed to such person within 90 days of the close of the
Plan Year in which such) in the case of cash dividends paid after December 31, 2001
to the extent permitted by the Committee, at the election of Participants and
Beneficiaries, either paid in accordance with (ii) or (iii) above or paid to the
Plan and reinvested in additional Stock. dividends were paid; or (iv) used to make
payments of principal or interest on a Share Acquisition Loan; provided, however,
that the Fair Market Value of Financed Shares released from the Loan Repayment
Account as a result of such payment equals or exceeds the amount of the dividend.

          Section 12.3. Voting Rights.

     (a) Each person shall direct the manner in which all voting rights appurtenant
to Shares allocated to his Share Investment Account will be exercised, provided that
such Shares were allocated to his Share Investment Account as of the applicable
record date. Such person shall, for such purpose, be deemed a named fiduciary within
the meaning of section 402(a)(2) of ERISA. Such a direction shall be given by
completing and filing with the inspector of elections, the Trustee or such other
person who shall be independent of the Participating Employers as the Committee
shall designate, at least 10 days prior to

35

 

the date of the meeting of holders of Shares at which such voting rights will
be exercised, a written direction in the form and manner prescribed by the
Committee. The inspector of elections, the Trustee or such other person designated
by the Committee shall tabulate the directions given on a strictly confidential
basis, and shall provide the Committee with only the final results of the
tabulation. The final results of the tabulation shall be followed by the Committee
in directing the Trustee as to the manner in which such voting rights shall be
exercised. The Plan Administrator shall make a reasonable effort to furnish, or
cause to be furnished, to each person for whom a Share Investment Account is
maintained all annual reports, proxy materials and other information known by the
Plan Administrator to have been furnished by the issuer of the Shares, or by any
solicitor of proxies, to the holders of Shares.

     (b) To the extent that any person shall fail to give instructions with respect
to the exercise of voting rights appurtenant to Shares allocated to his Share
Investment Account:

     (i) the Trustee shall, with respect to each matter to be voted upon: (A) cast
a number of affirmative votes equal to the product of (I) the number of allocated
Shares for which no written instructions have been given, multiplied by (II) a
fraction, the numerator of which is the number of allocated Shares for which
affirmative votes will be cast in accordance with written instructions given as
provided in section 12.3(a) and the denominator of which is the aggregate number of
affirmative and negative votes which will be cast in accordance with written
instructions given as aforesaid, and (B) cast a number of negative votes equal to
the excess (if any) of (I) the number of allocated Shares for which no written
instructions have been given over (II) the number of affirmative votes being cast
with respect to such allocated Shares pursuant to section 12.3(b)(i)(A); or

     (ii) if the Trustee shall determine that it may not, consistent with its
fiduciary duties, vote the allocated Shares for which no written instructions have
been given in the manner described in section 12.3(b)(i), it shall vote such Shares
in such manner as it, in its discretion, may determine to be in the best interests
of the persons to whose Share Investment Accounts such Shares have been allocated.

     (c) (i) The voting rights appurtenant to Financed Shares shall be exercised as
follows with respect to each matter as to which holders of Shares may vote:

     (A) a number of votes equal to the product of (I) the total number of votes
appurtenant to Financed Shares allocated to the Loan Repayment Account on the
applicable record date; multiplied by (II) a fraction, the numerator of which is
the total number of affirmative votes cast by Members, Former Members and the
Beneficiaries of deceased Former Members with respect to

36

 

such matter pursuant to
section 12.3(a) and the denominator of which is the total
number of affirmative and negative votes cast by Members, Former Members and
the Beneficiaries of deceased Former Participants, shall be cast in the
affirmative; and

     (B) a number of votes equal to the excess of (I) the total number of votes
appurtenant to Financed Shares allocated to the Loan Repayment Account on the
applicable record date, over (II) the number of affirmative votes cast pursuant to
section 12.3(c)(i)(A) shall be cast in the negative.

To the extent that the Financed Shares consist of more than one class of Shares, this section
12.3(c)(i) shall be applied separately with respect to each class of Shares.

          Section 12.4. Tender Offers.

     (a) Each person shall direct whether Shares allocated to his Share Investment
Account will be delivered in response to any Tender Offer. Such person shall, for
such purpose, be deemed a “named fiduciary” within the meaning of section 402(a)(2)
of ERISA. Such a direction shall be given by completing and filing with the Trustee
or such other person who shall be independent of the Participating Employers as the
Committee shall designate, at least 10 days prior to the latest date for exercising
a right to deliver Shares pursuant to such Tender Offer, a written direction in the
form and manner prescribed by the Committee. The Trustee or other person designated
by the Committee shall tabulate the directions given on a strictly confidential
basis, and shall provide the Committee with only the final results of the
tabulation. The final results of the tabulation shall be followed by the Committee
in directing the number of Shares to be delivered. The Plan Administrator shall make
a reasonable effort to furnish, or cause to be furnished, to each person for whom a
Share Investment Account is maintained, all information known by the Plan
Administrator to have been furnished by the issuer or by or on behalf of any person
making such Tender Offer, to the holders of Shares in connection with such Tender
Offer.

     (b) To the extent that any person shall fail to give instructions with respect
to Shares allocated to his Share Investment Account:

     (i) the Trustee shall (A) tender or otherwise offer for purchase, exchange or
redemption a number of such Shares equal to the product of (I) the number of
allocated Shares for which no written instructions have been given, multiplied by
(II) a fraction, the numerator of which is the number of allocated Shares tendered
or otherwise offered for purchase, exchange or redemption in accordance with
written instructions given as provided in section 12.4(a) and the denominator of
which is the aggregate number of allocated Shares for which written instructions
have been given as aforesaid, and (B) withhold a number of Shares equal to the
excess (if any) of (I) the number of allocated Shares for which

37

 

no written
instructions have been given over (II) the number of Shares being tendered or
otherwise offered pursuant to section 12.4(b)(i)(A); or

     (ii) if the Trustee shall determine that it may not, consistent with its
fiduciary duties, exercise the tender or other rights appurtenant to allocated
Shares for which no written instructions have been given in the manner described in
section 12.4(b)(i), it shall tender, or otherwise offer, or withhold such Shares
in such manner as it, in its discretion, may determine to be in the best interests
of the persons to whose Share Investment Accounts such Shares have been allocated.

     (c) In the case of any Tender Offer, any Financed Shares held in the Loan
Repayment Account shall be dealt with as follows:

     (i) on the last day for delivering Shares or otherwise responding to such
Tender Offer, a number of Financed Shares equal to the product of (A) the total
number of Financed Shares allocated to the Loan Repayment Account on the last day
of the effective period of such Tender Offer; multiplied by (B) a fraction, the
numerator of which is the total number of Shares delivered from the Share
Investment Accounts of Members, Former Members and the Beneficiaries of deceased
Former Participants in response to such Tender Offer pursuant to section 12.4(a),
and the denominator of which is the total number of Shares allocated to the Share
Investment Accounts of Members, Former Members and Beneficiaries of deceased Former
Members immediately prior to the last day for delivering Shares or otherwise
responding to such Tender Offer, shall be delivered; and

     (ii) a number of Financed Shares equal to the excess of (A) the total number
of Financed Shares allocated to the Loan Repayment Account on the last day for
delivering Shares or otherwise responding to such Tender Offer; over (B) the number
of Financed Shares to be delivered pursuant to section 12.4(c)(i), shall be
withheld from delivery.

To the extent that the Financed Shares consist of more than one class of Shares, this section
12.4(c) shall be applied separately with respect to each class of Shares.

38

 

Article XIII 

Payment of Benefits

          Section 13.1. In General.

          The balance credited to a Member’s or Former Member’s Account under the Plan shall be paid
only at the times, to the extent, in the manner and to the persons provided in this Article XIII.

          Section 13.2. Designation of Beneficiaries.

     (a) Subject to section 13.2(b), any person entitled to a benefit under the Plan
may designate a Beneficiary to receive any amount to which he is entitled that
remains undistributed on the date of his death. Such person shall designate his
Beneficiary (and may change or revoke any such designation) in writing in the form
and manner prescribed by the Plan Administrator. Such designation, and any change or
revocation thereof, shall be effective only if received by the Plan Administrator
prior to such person’s death and shall become irrevocable upon such person’s death.

     (b) A Member or Former Member who is married shall automatically be deemed to
have designated his spouse as his Beneficiary, unless, prior to the time such
designation would, under section 13.2(a), become irrevocable:

     (i) the Member or Former Member designates an additional or a different
Beneficiary in accordance with this section 13.2; and

     (ii) (A) the spouse of such Member or Former Member consents to such
designation in a writing that acknowledges the effect of such consent and is
witnessed by a Plan representative or a notary public; or (B) the spouse of such
Member or Former Member has previously consented to such designation by signing a
written waiver of any right to consent to any designation made by the Member or
Former Member, and such waiver acknowledged the effect of the waiver and was
witnessed by a Plan representative or a notary public; or (C) it is established to
the satisfaction of a Plan representative that the consent required under section
13.2(b)(ii)(A) may not be obtained because such spouse cannot be located or because
of other circumstances permitted under regulations issued by the Secretary of the
Treasury.

     (c) In the event that a Beneficiary entitled to payments hereunder shall die
after the death of the person who designated him but prior to receiving payment of
his entire interest in the Account of the person who designated him, then such
Beneficiary’s interest in the Account of such person, or any unpaid balance thereof,
shall be paid as provided in section 13.3 to the Beneficiary who has been designated
by the deceased Beneficiary, or if there is none, to the

39

 

executor or administrator of the estate of such deceased Beneficiary, or if no
such executor or administrator is appointed within such time as the Plan
Administrator, in his sole discretion, shall deem reasonable, to such one or more of
the spouse and descendants and blood relatives of such deceased Beneficiary as the
Plan Administrator may select. If a person entitled to a benefit under the Plan and
any of the Beneficiaries designated by him shall die in such circumstances that
there shall be substantial doubt as to which of them shall have been the first to
die, for all purposes of the Plan, the person who made the Beneficiary designation
shall be deemed to have survived such Beneficiary.

     (d) If no Beneficiary survives the person entitled to the benefit under the
Plan or if no Beneficiary has been designated by such person, such benefit shall be
paid to the executor or administrator of the estate of such person, or if no such
executor or administrator is appointed within such time as the Plan Administrator,
in his sole discretion, shall deem reasonable, to such one or more of the spouse and
descendants and blood relatives of such deceased person as the Plan Administrator
may select.

     (e) For taxable years beginning after December 31, 2002, the determination of
whether a Beneficiary is a Designated Beneficiary and whether a Designated
Beneficiary is a surviving spouse shall be made not later than September 30th of the
calendar year following the calendar year in which the Member dies.

          Section 13.3. Distributions to Members.

     (a) Except as provided in section 13.5, the vested portion of the balance
credited to a Former Member’s Account shall be distributed to him in a single
distribution as of the last Valuation Date to occur in the Plan Year in which he
terminates employment with all Affiliated Employers or the Plan Year in which he
attains age 65, whichever is later; provided, however, that if the Former Member
elects, at such time and in such manner as the Plan Administrator may prescribe,
that distribution be made as of an earlier Valuation Date that coincides with or
follows his termination of employment with all Affiliated Employers, distribution
shall be made as of such earlier Valuation Date. The actual distribution shall be
made within sixty days after the applicable Valuation Date.

     (b) In the event of the death of a Member or Former Member before the date of
actual distribution of the vested portion of the balance credited to his Account,
such vested portion shall be distributed to his Beneficiary in a single distribution
as of the first Valuation Date to occur following the latest of (i) the date on
which the Plan Administrator is notified of the Member’s or Former Member’s death;
and (ii) the date on which the Plan Administrator determines the identity and
location of the Member’s or Former Member’s Beneficiary or Beneficiaries. The actual
distribution shall be made within sixty days after the applicable Valuation Date.

40

 

     (c) Notwithstanding anything to the contrary in section 13.3(a), in the event that a
Former Member has not attained age 65 as of the last Valuation Date to occur in the Plan
Year in which he terminates employment with all Affiliated Employers and the entire vested
portion of the balance credited to such Former Member’s Account is not more than $5,000 (or
such greater amount as may be prescribed pursuant to section 417(e) of the Code) as of the
last Valuation Date to occur in the Plan Year in which he terminates employment with all
Affiliated Employers, then such vested portion shall be distributed to him in a single
distribution within sixty days after the applicable Valuation Date.

          Section 13.4. Manner of Payment.

          Distributions made pursuant to section 13.3 or section 13.5 shall be made in the maximum
number of whole Shares that are available, plus, if necessary, an amount of money equal to any
remaining amount of the distribution that is less than the Fair Market Value of a whole Share.

          Section 13.5. Minimum Required Distributions.

     (a) Required minimum distributions of a Member’s or Former Member’s Account shall commence no
later than:

     (i) If the Member or Former Member was not a Five Percent Owner at any time
during the Plan Year ending in the calendar year in which he attained age 70 1/2,
during any of the four preceding Plan Years or during any subsequent years, the
later of (A) the calendar year in which he attains or attained age 70 1/2 or (B) the
calendar year in which he terminates employment with all Affiliated Employers; or

     (ii) if the Member or Former Member attains age 70 1/2 after December 31, 1998
and is or was a Five Percent Owner at any time during the Plan Year ending in the
calendar year in which he attained age 70 1/2, during any of the four preceding Plan
Years or during any subsequent years, the later of (A) the calendar year in which
he attains age 70 1/2 or (B) the calendar year in which he first becomes a Five
Percent Owner.

     (b) The required minimum distributions contemplated by section 13.5(a) shall be made as
follows:

     (i) The minimum required distribution to be made for the calendar year for
which the first minimum distribution is required shall be no later than April 1st
of the immediately following calendar year and shall be equal to the quotient
obtained by dividing (A) the vested balance credited to the Member’s or Former
Member’s Account as of the last Valuation Date to occur in the calendar year
immediately preceding the calendar year in which the first minimum
distribution is required (adjusted to account for any additions thereto or

41

 

subtractions therefrom after such Valuation Date but on or before December 31st of
such calendar year); by (B) the Member’s or Former Member’s life expectancy (or, if
his Beneficiary is a Designated Beneficiary, the joint life and last survivor
expectancy of him and his Beneficiary); and

     (ii) the minimum required distribution to be made for each calendar year
following the calendar year for which the first minimum distribution is required
shall be made no later than December 31st of the calendar year for which the
distribution is required and shall be equal to the quotient obtained by dividing
(A) the vested balance credited to the Member’s or Former Member’s Account as of
the last Valuation Date to occur in the calendar year prior to the calendar year
for which the distribution is required (adjusted to account for any additions
thereto or subtractions therefrom after such Valuation Date but on or before
December 31st of such calendar year and, in the case of the distribution for the
calendar year immediately following the calendar year for which the first minimum
distribution is required, reduced by any distribution for the prior calendar year
that is made in the current calendar year); by (B) the Member’s or Former Member’s
life expectancy (or, if his Beneficiary is a Designated Beneficiary, the joint
life and last survivor expectancy of him and his Beneficiary).

     (iii) For purposes of this section 13.5:

     (A) for taxable years beginning before January 1, 2003, the life
expectancy of a Member or Former Member (or the joint life and last survivor
expectancy of a Member or Former Member and his Designated Beneficiary) for
the calendar year in which the Member or Former Member attains age 70 1/2
shall be determined on the basis of Tables V and VI, as applicable, of
section 1.72-9 of the Income Tax Regulations as of the Member’s or Former
Member’s and Beneficiary’s birthday in such year. Such life expectancy or
joint life and last survivor expectancy for any subsequent year shall be
equal to the excess of (1) the life expectancy or joint life and last
survivor expectancy for the year in which the Member or Former Member
attains age 70 1/2, over (2) the number of whole years that have elapsed since
the Member or Former Member attained age 70 1/2.

     (B) for taxable years beginning after December 31, 2002, during the
Member’s or Former Member’s lifetime, life expectancy shall be equal to:

     (1) the distribution period in the Uniform Lifetime Table set
forth in section 1.401(a)(9)-9 of the Treasury regulations, using
the Member’s age as of the Member’s birthday in such calendar year;
or

42

 

     (2) if the Member’s spouse is the sole Designated Beneficiary
and the spouse is more than ten years younger than the Member, the
number in the Joint and Last Survivor Table set forth in section
1.401(a)(9)-9 of the Treasury regulations, using the Member’s and
spouse’s attained ages as of the Member’s and spouse’s birthdays in
such calendar year.

     (c) Payment of the distributions required to be made to a Member or Former Member under this
section 13.5 shall be made in accordance with section 13.4.

     (d) This section 13.5 shall be interpreted and administered in accordance with section
401(a)(9) of the Code and the regulations thereunder.

          Section 13.6. Direct Rollover of Eligible Rollover Distributions.

     (a) A Distributee may elect, at the time and in the manner prescribed by the
Plan Administrator, to have any portion of an Eligible Rollover Distribution paid
directly to an Eligible Retirement Plan specified by the Distributee in a Direct
Rollover.

     (b) The following rules shall apply with respect to Direct Rollovers made
pursuant to this section 13.6:

     (i) A Member or Former Member may only elect to make a Direct Rollover of an
Eligible Rollover Distribution if such Eligible Rollover Distribution (when
combined with other Eligible Rollover Distributions made or to be made in the same
calendar year) is reasonably expected to be at least $200;

     (ii) If a Member or Former Member elects a Direct Rollover of a portion of an
Eligible Rollover Distribution, that portion must be equal to at least $500; and

     (iii) A Member or Former Member may not divide his or her Eligible Rollover
Distribution into separate distributions to be transferred to two or more Eligible
Retirement Plans.

     (c) For purposes of this section 13.6 and any other applicable section of the
Plan, the following definitions shall have the following meanings:

     (i) “Direct Rollover” means a payment by the Plan to the Eligible Retirement
Plan specified by the Distributee.

     (ii) “Distributee” means an Employee or former Employee. In addition, the
Employee’s or former Employee’s surviving spouse and the Employee’s spouse or
former spouse who is the alternate payee under a Qualified Domestic Relations Order
are considered Distributees with regard to the interest
of the spouse or former spouse. Effective for distributions after December 31,

43

 

2001, a non-spouse Beneficiary shall also be a Distributee wuth respect his or her
distributions.

     (iii) “Eligible Retirement Plan” means an individual retirement account
described in section 408(a) of the Code, an individual retirement annuity described
in section 408(b) of the Code, an annuity plan described in section 403(a) of the
Code, or a qualified trust described in section 401(a) of the Code, and (for
distributions after December 31, 2001 only) an annuity contract described in section
403(b) of the Code or an eligible deferred compensation plan under section 457(b) of
the Code which is maintained by a state, political subdivision of a state, or an
agency or instrumentality of a state or political subdivision thereof and which
agrees to separately account for amounts transferred into such plan from this Plan,
that accepts the distributee’s eligible rollover distribution. However, in the case
of an Eligible Rollover Distribution to a Distributee who is a non-spouse
Beneficiary and in the case of an eligible rollover distribution made before January
1, 2002 to a current or former spouse who is the alternate payee under a qualified
domestic relations order as defined in Code section 414(p) or to a surviving spouse,
an eligible retirement plan is only an individual retirement account or individual
retirement annuity.

     (iv) “Eligible Rollover Distribution” means any distribution of all or any
portion of the balance to the credit of the Distributee, except that an Eligible
Rollover Distribution does not include: any distribution that is one of a series of
substantially equal periodic payments (not less frequently than annually) made for
the life (or life expectancy) of the Distributee or the joint lives (or joint life
expectancies) of the Distributee’s designated Beneficiary, or for a specified period
of ten (10) years or more; any distribution to the extent such distribution is
required under section 401(a)(9) of the Code; and the portion of any distribution
that is not includible in gross income (determined without regard to the exclusion
for net unrealized appreciation with respect to employer securities).

          Section 13.7. Valuation of Shares Upon Distribution.

          Notwithstanding any contrary provision in this Article XIII, in the event that all or a
portion of a payment of a distribution is to be made in cash, the recipient shall only be entitled
to receive the proceeds of the Shares allocated to his Account that are sold in connection with
such distribution and which are valued as of the date of such sale.

          Section 13.8. Put Options.

     (a) Subject to section 13.8(c) and except as provided otherwise in section
13.8(b), each Member or Former Member to whom Shares are distributed under the Plan,
each Beneficiary of a deceased Member or Former Member, including the estate of a
deceased Member or Former Member, to whom Shares are distributed under the Plan, and
each person to whom such a Member, Former
Member or Beneficiary gives Shares that have been distributed under the Plan

44

 

shall have the right to require Hudson City Bancorp, Inc. to purchase from him all
or any portion of such Shares. A person shall exercise such right by delivering to
Hudson City Bancorp, Inc. a written notice, in such form and manner as Hudson City
Bancorp, Inc. may by written notice to such person prescribe, setting forth the
number of Shares to be purchased by Hudson City Bancorp, Inc., the number of the
stock certificate evidencing such person’s ownership of such Shares, and the
effective date of the purchase. Such notice shall be given at least 30 days in
advance of the effective date of purchase, and the effective date of purchase
specified therein shall be, either within the 60 day period that begins on the date
on which the Shares to be purchased by Hudson City Bancorp, Inc. were distributed
from the Plan or within the 60 day period that begins on the first day of the Plan
Year immediately following the Plan Year in which the Shares to be purchased by
Hudson City Bancorp, Inc. are distributed from the Plan. As soon as practicable
following its receipt of such a notice, Hudson City Bancorp, Inc. shall take such
actions as are necessary to purchase the Shares specified in such notice at a price
per Share equal to the Fair Market Value of a Share determined as of the Valuation
Date coincident with or immediately preceding the effective date of the purchase.

     (b) Hudson City Bancorp, Inc. shall have no obligation to purchase any Share
(i) pursuant to a notice that is not timely given, or on an effective date of
purchase that is not within the periods prescribed in section 13.8(a) or (ii) during
a period in which Shares are publicly traded on an established market.

     (c) This section 13.8 shall not apply so long as Hudson City Bancorp, Inc. is
prohibited by law from redeeming or purchasing its own securities.

          Section 13.9. Right of First Refusal.

     (a) Subject to section 13.9(d), for any period during which Shares are not
publicly traded in any established market, no person who owns Shares that were
distributed from the Plan, other than a person to whom such Shares were sold in
compliance with this section 13.9, shall sell such Shares to any person other than
Hudson City Bancorp, Inc. without first offering to sell such Shares to Hudson City
Bancorp, Inc. in accordance with this section 13.9.

     (b) In the event that a person to whom this section 13.9 applies shall receive
and desire to accept from a person other than Hudson City Bancorp, Inc. an offer to
purchase Shares to which this section 13.9 applies, he shall furnish to Hudson City
Bancorp, Inc. a written notice which shall:

     (i) include a copy of such offer to purchase;

     (ii) offer to sell to Hudson City Bancorp, Inc. the Shares subject to such
offer to purchase at a price per Share that is equal to the greater of:

45

 

     (A) the price per Share specified in such offer to purchase; or

     (B) the Fair Market Value of a Share as of the Valuation Date
coincident with or immediately preceding the date of such notice;

and otherwise upon the same terms and conditions as those specified in such offer to
purchase; and

     (iii) include an indication of his intention to accept such offer to purchase
if Hudson City Bancorp, Inc. does not accept his offer to sell.

Such person shall refrain from accepting such offer to purchase for a period of fourteen days
following the date on which such notice is given.

     (c) Subject to section 13.9(d), Hudson City Bancorp, Inc. shall have the right
to purchase the Shares covered by the offer to sell contained in a notice given
pursuant to section 13.9(b), on the terms and conditions specified in such notice,
by written notice given to the party making the offer to sell not later than the
fourteenth day after the notice described in section 13.9(b) is given. If Hudson
City Bancorp, Inc. does not give such a notice during the prescribed fourteen day
period, then the person owning such Shares may accept the offer to purchase
described in the notice.

     (d) This section 13.9 shall not apply so long as Hudson City Bancorp, Inc. is
prohibited by law from redeeming or purchasing its own securities.

          Section 13.10 Automatic Rollover of Certain Payments.

     (a) If a distribution is to be made to a Member or Former Member that is both an
Eligible Rollover Distribution and a Mandatory Distribution, the Plan Administrator shall
notify the Member or Former Member in writing that such person is permitted to make an
election to have such distribution paid directly to an Eligible Retirement Plan specified by
the Participant in a direct rollover or to receive the distribution directly. Such notice
shall inform the Member or Former Member that if such Member or Former Member fails to make
a timely election in the form and manner prescribed by the Plan Administrator, then the
Committee will pay the distribution in a direct rollover to an Individual Retirement Plan
designated by the Committee, identifying the trustee or issuer of such Individual Retirement
Plan.

     (b) To the extent necessary to satisfy section 401(a)(31)(B) of the Code and section
2550.404a-2 of the Department of Labor regulations, any rollover made under section 13.10(a)
to an Individual Retirement Plan shall satisfy the following conditions:

     (i) In connection with the distribution of rolled-over funds to an
Individual Retirement Plan, the Committee or other named fiduciary

46

 

enters
into a written agreement with an Individual Retirement Plan provider that
provides:

     (A) The rollover is invested in an Eligible Investment Product.

     (B) The Member or Former Member on whose behalf the Committee
or other named fiduciary makes an automatic rollover shall have the
right to enforce the terms of the contractual agreement establishing
the Individual Retirement Plan, with regard to his or her
rolled-over funds, against the Individual Retirement Plan Provider.

     (C) Fees and expenses attendant to the Individual Retirement
Plan, including the investment of the assets of such plan, (e.g.,
establishment charges, maintenance fees, investment expenses,
termination costs, and surrender charges) shall not exceed the fees
and expenses charged by the Individual Retirement Plan Provider for
comparable Individual Retirement Plans established for reasons other
than the receipt of a Mandatory Distribution or any other
distribution made in accordance with section 401(a)(31)(B) of the
Code;

     (ii) Members have been furnished a summary plan description, or a
summary of material modifications, that describes the Plan’s automatic
rollover provisions effectuating the requirements of section 401(a)(31)(B)
of the Code, including an explanation that the mandatory distribution will
be invested in an investment product designed to preserve principal and
provide a reasonable rate of return and liquidity, a statement indicating
how fees and expenses attendant to the Individual Retirement Plan will be
allocated (i.e., the extent to which expense will be borne by the account
holder alone or shared with the distributing plan or plan sponsor), and the
name, address and phone number of a plan contact (to the extent not
otherwise provided in the summary plan description or summary of material
modifications) for further information concerning the plan’s automatic
rollover provisions, the Individual Retirement Plan provider and the fees
and expenses attendant to the Individual Retirement Plan; and

     (iii) If (A) any fiduciary of the Plan is using its authority to
designate itself or an affiliate as the Individual Retirement Plan Provider
to receive a Mandatory Distribution, or (B) the initial investment of the
Mandatory Distribution by such fiduciary is in an investment product in
which the fiduciary or its affiliate has an interest, or (C) such Individual
Retirement Plan Provider receives a fee in connection with the establishment
or maintenance of the Individual Retirement Plan, or (D) such Individual
Retirement Plan Provider or an affiliate receives a fee as a

47

 

result of the
initial investment of the Mandatory Distribution in an investment product in
which such fiduciary or an affiliate has an interest, then the conditions of
Prohibited Transaction Class Exemption 2004-16 must be satisfied in addition
to those set forth in this section 10.9.

     (iv) The term “Eligible Investment Product” means an investment product
designed to preserve principal and provide a reasonable rate of return,
whether or not such return is guaranteed, consistent with liquidity. For
this purpose, the product must be offered by a Regulated Financial
Institution and shall seek to maintain, over the term of the investment, the
dollar value that is equal to the amount invested in the product by the
Individual Retirement Plan. Such term includes money market funds maintained
by registered investment companies, and interest-bearing savings accounts
and certificates of deposit of a bank or similar financial institution. In
addition, the term includes “stable value products” issued by a financial
institution that are fully benefit-responsive to the Individual Retirement
Plan account holder, i.e., that provide a liquidity guarantee by a
financially responsible third party of principal and previously accrued
interest for liquidations or transfers initiated by the Individual
Retirement Plan account holder exercising his or her right to withdraw or
transfer funds under the terms of an arrangement that does not include
substantial restrictions to the account holder’s access to the Individual
Retirement Plan’s assets.

     (v) The term “Individual Retirement Plan” means any Eligible Retirement
Plan that is an individual retirement account or individual retirement
annuity described in sections 408(a) and (b) of the Code.

     (vi) The term “Mandatory Distribution” means any distribution pursuant
to section 10.1 that is to be made on or after March 28, 2005 and before the
Participant has attained Normal Retirement Age (or age 62, if later) in
accordance with section 401(a)(31)(B) of the Code and that exceeds $1,000.
A distribution to a surviving spouse or alternate payee shall not be
considered a Mandatory Distribution.

     (vii) The term “Regulated Financial Institution” means an entity that:
(A) Is subject to state or federal regulation, and (B) is a bank or savings
association, the deposits of which are insured by the Federal Deposit
Insurance Corporation; a credit union, the member accounts of which are
insured within the meaning of section 101(7) of the Federal Credit Union
Act; an insurance company, the products of which are protected by state
guaranty associations; or an investment company registered under the
Investment Company Act of 1940.

48

 

Article XIV

Change in Control

          Section 14.1. Definition of Change in Control; Pending Change in Control.

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

     (i) any event upon which any “person” (as such term is used in sections 13(d)
and 14(d) of the Securities Exchange Act of 1934, as amended), other than (A) a
trustee or other fiduciary holding securities under any employee benefit plan
maintained for the benefit of employees of Hudson City Bancorp, Inc.; (B) a
corporation owned, directly or indirectly, by the stockholders of Hudson City
Bancorp, Inc. in substantially the same proportions as their ownership of stock of
Hudson City Bancorp, Inc.; or (C) any group constituting a person in which
employees of Hudson City Bancorp, Inc. are substantial members, becomes the
“beneficial owner” (as defined in Rule 13d-3 promulgated under the Exchange Act),
directly or indirectly, of securities issued by Hudson City Bancorp, Inc.
representing 25% or more of the combined voting power of all of Hudson City
Bancorp, Inc.’s then outstanding securities; or

     (ii) any event upon which the individuals who on the Effective Date were
members of the Board of Directors of Hudson City Bancorp, Inc. together with
individuals whose election by such Board or nomination for election by Hudson City
Bancorp, Inc.’s stockholders was approved by the affirmative vote of at least
two-thirds of the members of such Board then in office who were either members of
such Board on the Effective Date or whose nomination or election was previously so
approved, cease for any reason to constitute a majority of the members of such
Board, but excluding, for this purpose, any such individual whose initial
assumption of office is in connection with an actual or threatened election contest
relating to the election of directors of Hudson City Bancorp, Inc. (as such terms
are used in Rule 14a-11 of Regulation 14A promulgated under the Securities Exchange
Act of 1934) as amended; or

     (iii) the consummation of either:

     (A) a merger or consolidation of Hudson City Bancorp, Inc. with any other
corporation, other than a merger or consolidation following which both of the
following conditions are satisfied:

     (I) either (1) the members of the Board of Directors of Hudson City Bancorp,
Inc. immediately prior to such merger or consolidation constitute at least a
majority of the members of the governing body of the institution resulting from
such merger or consolidation; or (2) the shareholders of Hudson City
Bancorp, Inc. own securities of the institution resulting from such merger or

49

 

consolidation representing 60% or more of the combined voting power of all such
securities then outstanding in substantially the same proportions as their
ownership of voting securities of Hudson City Bancorp, Inc. before such merger or
consolidation; and

     (II) the entity which results from such merger or consolidation expressly
agrees in writing to assume and perform Hudson City Bancorp, Inc.’s obligations
under the Plan; or

     (B) a complete liquidation of Hudson City Bancorp, Inc. or an agreement for
the sale or disposition by Hudson City Bancorp, Inc. of all or substantially all of
its assets; or

     (iv) any event that would be described in section 16.1 if “Hudson City Savings
Bank” were substituted for “Hudson City Bancorp, Inc.” therein.

In no event, however, shall the transaction by which Hudson City Savings Bank converts from a
mutual institution to a stock institution, or any transaction by which a company wholly owned by
Hudson City Savings Bank becomes the parent company of Hudson City Savings Bank, be deemed a Change
in Control.

     (b) A Pending Change of Control shall be deemed to have occurred upon the
happening of any of the following events:

     (i) approval by the stockholders of Hudson City Bancorp, Inc. of a
transaction, or a plan for the consummation of a transaction, which, if
consummated, would result in a Change in Control;

     (ii) approval by the Board of Directors of Hudson City Bancorp, Inc. of a
transaction, or a plan for the consummation of a transaction, which, if
consummated, would result in a Change in Control;

     (iii) the commencement of a tender offer (within the meaning of section
14(d)(i) of the Exchange Act, as amended) for securities issued by Hudson City
Bancorp, Inc., which, if completed, would result in a Change in Control;

     (iv) the furnishing or distribution of a proxy statement or other document,
whether or not in opposition to management, soliciting proxies, consents or
authorizations (within the meaning of section 14 of the Exchange Act) in respect of
securities issued by Hudson City Bancorp, Inc. in favor of any election,
transaction or other action which, if effected, would result in a Change in
Control; or

     (v) any event which would be described in Sections 14.1(b)(i), (ii), (iii) or
(iv) if “Hudson City Savings Bank” were substituted for “Hudson City Bancorp, Inc.”
therein.

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          Section 14.2. Vesting on Change of Control.

          Notwithstanding any other provision of the Plan, upon the effective date of a Change in
Control, the Account of each person who would then, upon termination of the Plan, be entitled to a
benefit, shall be fully vested and nonforfeitable.

          Section 14.3. Repayment of Share Acquisition Loan.

          Notwithstanding any other provision of the Plan, upon the occurrence of a Change in Control,
the Committee shall direct the Trustee to sell a sufficient number of shares of Stock to repay any
outstanding Share Acquisition Loan, all remaining Shares which had been unallocated (or the
proceeds from the sale thereof, if applicable) shall be allocated among the accounts of all
individuals with undistributed Account balances on the effective date of such Change in Control.
Such allocation of Shares or proceeds shall be in proportion to the balance credited to their
Accounts immediately prior to such allocation.

          Section 14.4. Plan Termination After Change in Control.

          Notwithstanding any other provision of the Plan, after repayment of the loan and allocation of
Shares or proceeds as provided in Section 14.3, the Plan shall be terminated and all amounts shall
be distributed as soon as practicable.

          Section 14.5. Amendment of Section XIV.

          Notwithstanding any other provision of the Plan, this Section 14 of the Plan may be amended
after the earliest date on which a Change in Control or Pending Change in Control occurs, except
(i) to the extent any amendment is required by the Internal Revenue Service as a condition to the
continued treatment of the Plan as a tax-qualified plan under section 401(a) of the Code or (ii) to
the extent that the Bank, in its sole discretion, determines than any such amendment is necessary
in order to permit any transaction to which the Bank, and/or its parent or affiliate, is or
proposes to be a party to qualify for “pooling of interests” accounting treatment.

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Article XV

Administration

          Section 15.1. Named Fiduciaries.

          The term “Named Fiduciary” shall mean (but only to the extent of the responsibilities of each
of them) the Plan Administrator, the Committee, the Board and the Trustee. This Article XV is
intended to allocate to each Named Fiduciary the responsibility for the prudent execution of the
functions assigned to him or it, and none of such responsibilities or any other responsibility
shall be shared by two or more of such Named Fiduciaries. Whenever one Named Fiduciary is required
by the Plan or Trust Agreement to follow the directions of another Named Fiduciary, the two Named
Fiduciaries shall not be deemed to have been assigned a shared responsibility, but the
responsibility of the Named Fiduciary giving the directions shall be deemed his sole
responsibility, and the responsibility of the Named Fiduciary receiving those directions shall be
to follow them insofar as such instructions are on their face proper under applicable law.

          Section 15.2. Plan Administrator.

          There shall be a Plan Administrator, who shall be the Employee Benefit Plans Committee, or
such Employee or officer as may be designated by the Committee, as hereinafter provided, and who
shall, subject to the responsibilities of the Committee and the Board, have the responsibility for
the day-to-day control, management, operation and administration of the Plan (except trust duties).
The Plan Administrator shall have the following responsibilities:

     (a) To maintain records necessary or appropriate for the administration of the
Plan;

     (b) To give and receive such instructions, notices, information, materials,
reports and certifications to the Trustee as may be necessary or appropriate in the
administration of the Plan;

     (c) To prescribe forms and make rules and regulations consistent with the
terms of the Plan and with the interpretations and other actions of the Committee;

     (d) To require such proof of age or evidence of good health of an Employee,
Member or Former Member or the spouse of either, or of a Beneficiary as may be
necessary or appropriate in the administration of the Plan;

     (e) To prepare and file, distribute or furnish all reports, plan descriptions,
and other information concerning the Plan, including, without limitation, filings
with the Secretary of Labor and communications with
Members, Former Members and other persons, as shall be required of the Plan
Administrator under ERISA;

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     (f) To determine any question arising in connection with the Plan, and the
Plan Administrator’s decision or action in respect thereof shall be final and
conclusive and binding upon the Employer, the Trustee, Members, Former Members,
Beneficiaries and any other person having an interest under the Plan; provided,
however, that any question relating to inconsistency or omission in the Plan, or
interpretation of the provisions of the Plan, shall be referred to the Committee by
the Plan Administrator and the decision of the Committee in respect thereof shall
be final;

     (g) Subject to the provisions of section 15.5, to review and dispose of claims
under the Plan filed pursuant to section 15.4;

     (h) If the Plan Administrator shall determine that by reason of illness,
senility, insanity, or for any other reason, it is undesirable to make any payment
to a Member, Former Member, Beneficiary or any other person entitled thereto, to
direct the application of any amount so payable to the use or benefit of such
person in any manner that he may deem advisable or to direct in his discretion the
withholding of any payment under the Plan due to any person under legal disability
until a representative competent to receive such payment in his behalf shall be
appointed pursuant to law;

     (i) To discharge such other responsibilities or follow such directions as may
be assigned or given by the Committee or the Board; and

     (j) To perform any duty or take any action which is allocated to the Plan
Administrator under the Plan.

The Plan Administrator shall have the power and authority necessary or appropriate to carry out his
responsibilities. The Plan Administrator may resign only by giving at least 30 days’ prior written
notice of resignation to the Committee, and such resignation shall be effective on the date
specified in such notice.

          Section 15.3. Committee Responsibilities.

          The Committee shall, subject to the responsibilities of the Board, have the following
responsibilities:

     (a) To review the performance of the Plan Administrator;

     (b) To hear and decide appeals, pursuant to the claims procedure contained in
section 15.5 of the Plan, taken from the decisions of the Plan Administrator;

     (c) To hear and decide questions, including interpretation of the Plan, as may
be referred to the Committee by the Plan Administrator;

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     (d) To review the performance of the Trustee and such investment managers as
may be appointed in or pursuant to the Trust Agreement in investing, managing and
controlling the assets of the Plan;

     (e) To the extent required by ERISA, to establish a funding policy and method
consistent with the objectives of the Plan and the requirements of ERISA, and to
review such policy and method at least annually;

     (f) To report and make recommendations to the Board regarding changes in the
Plan, including changes in the operation and management of the Plan and removal and
replacement of the Trustee and such investment managers as may be appointed in or
pursuant to the Trust Agreement;

     (g) To designate an Alternate Plan Administrator to serve in the event that
the Plan Administrator is absent or otherwise unable to discharge his
responsibilities;

     (h) To remove and replace the Plan Administrator or Alternate, or both of
them, and to fill a vacancy in either office;

     (i) To the extent provided under and subject to the provisions of the Trust
Agreement, to appoint “investment managers” as defined in section 3(38) of ERISA to
manage and control (including acquiring and disposing of) all or any of the assets
of the Plan;

     (j) With the prior approval of the Board, to direct the Trustee to obtain one
or more Share Acquisition Loans;

     (k) To develop and provide procedures and forms necessary to facilitate voting
and tendering directions on a confidential basis;

     (l) To discharge such other responsibilities or follow such directions as may
be assigned or given by the Board; and

     (m) To perform any duty or take any action which is allocated to the Committee
under the Plan.

The Committee shall have the power and authority necessary or appropriate to carry out its
responsibilities.

          Section 15.4. Claims Procedure.

     Any claim relating to benefits under the Plan shall be filed with the Plan Administrator on a
form prescribed by him. If a claim is denied in whole or in part, the Plan Administrator shall give
the claimant written notice of such denial, which notice shall specifically set forth:

     (a) The reasons for the denial;

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     (b) The pertinent Plan provisions on which the denial was based;

     (c) Any additional material or information necessary for the claimant to
perfect his claim and an explanation of why such material or information is needed;
and

     (d) An explanation of the Plan’s procedure for review of the denial of the
claim.

In the event that the claim is not granted and notice of denial of a claim is not furnished by the
30th day after such claim was filed, the claim shall be deemed to have been denied on that day for
the purpose of permitting the claimant to request review of the claim.

          Section 15.5. Claims Review Procedure.

          Any person whose claim filed pursuant to section 15.4 has been denied in whole or in part by
the Plan Administrator may request review of the claim by the Committee, upon a form prescribed by
the Plan Administrator. The claimant shall file such form (including a statement of his position)
with the Committee no later than 60 days after the mailing or delivery of the written notice of
denial provided for in section 15.4, or, if such notice is not provided, within 60 days after such
claim is deemed denied pursuant to section 15.4. The claimant shall be permitted to review
pertinent documents. A decision shall be rendered by the Committee and communicated to the claimant
not later than 30 days after receipt of the claimant’s written request for review. However, if the
Committee finds it necessary, due to special circumstances (for example, the need to hold a
hearing), to extend this period and so notifies the claimant in writing, the decision shall be
rendered as soon as practicable, but in no event later than 120 days after the claimant’s request
for review. The Committee’s decision shall be in writing and shall specifically set forth:

     (a) The reasons for the decision; and

     (b) The pertinent Plan provisions on which the decision is based.

Any such decision of the Committee shall be binding upon the claimant and the Employer, and the
Plan Administrator shall take appropriate action to carry out such decision.

          Section 15.6. Allocation of Fiduciary Responsibilities and Employment of Advisors.

          Any Named Fiduciary may:

     (a) Allocate any of his or its responsibilities (other than trustee
responsibilities) under the Plan to such other person or persons as he or it may
designate, provided that such allocation and designation shall be in writing and
filed with the Plan Administrator;

55

 

     (b) Employ one or more persons to render advice to him or it with regard to
any of his or its responsibilities under the Plan; and

     (c) Consult with counsel, who may be counsel to the Employer.

          Section 15.7. Other Administrative Provisions.

     (a) Any person whose claim has been denied in whole or in part must exhaust the
administrative review procedures provided in section 15.5 prior to initiating any
claim for judicial review.

     (b) No bond or other security shall be required of a member of the Committee,
the Plan Administrator, or any officer or Employee of the Employer to whom fiduciary
responsibilities are allocated by a Named Fiduciary, except as may be required by
ERISA.

     (c) Subject to any limitation on the application of this section 15.7(c)
pursuant to ERISA, neither the Plan Administrator, nor a member of the Committee,
nor any officer or Employee of the Employer to whom fiduciary responsibilities are
allocated by a Named Fiduciary, shall be liable for any act of omission or
commission by himself or by another person, except for his own individual willful
and intentional malfeasance.

     (d) The Plan Administrator or the Committee may, except with respect to actions
under section 15.5, shorten, extend or waive the time (but not beyond 60 days)
required by the Plan for filing any notice or other form with the Plan Administrator
or the Committee, or taking any other action under the Plan.

     (e) The Plan Administrator or the Committee may direct that the costs of
services provided pursuant to section 15.6, and such other reasonable expenses as
may be incurred in the administration of the Plan, shall be paid out of the funds of
the Plan unless the Employer shall pay them.

     (f) Any person, group of persons, committee, corporation or organization may
serve in more than one fiduciary capacity with respect to the Plan.

     (g) Any action taken or omitted by any fiduciary with respect to the Plan,
including any decision, interpretation, claim denial or review on appeal, shall be
conclusive and binding on all interested parties and shall be subject to judicial
modification or reversal only to the extent it is determined by a court of competent
jurisdiction that such action or omission was arbitrary and capricious and contrary
to the terms of the Plan.

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Article XVI

Amendment, Termination and Tax Qualification 

          Section 16.1. Amendment and Termination by Hudson City Savings Bank.

          The Participating Employers expect to continue the Plan indefinitely, but specifically reserve
the right, in their sole discretion, at any time, by appropriate action of their respective boards
of directors or other authorized officials, to amend, in whole or in part, any or all of the
provisions of the Plan and to terminate the Plan at any time. Subject to the provisions of section
16.2, no such amendment or termination shall permit any part of the Trust Fund to be used for or
diverted to purposes other than for the exclusive benefit of Members, Former Members, Beneficiaries
or other persons entitled to benefits, and no such amendment or termination shall reduce the
accrued benefit of any Member, Former Member, Beneficiary or other person who may be entitled to
benefits, without his consent. In the event of a termination or partial termination of the Plan, or
in the event of a complete discontinuance of the Participating Employer’s contributions to the
Plan, the Accounts of each affected person shall forthwith become nonforfeitable and shall be
payable in accordance with the provisions of Article XIII.

          Section 16.2. Amendment or Termination Other Than by Hudson City Savings Bank.

          In the event that a corporation or trade or business other than Hudson City Savings Bank shall
adopt this Plan, such corporation or trade or business shall, by adopting the Plan, empower Hudson
City Savings Bank to amend or terminate the Plan, insofar as it shall cover employees of such
corporation or trade or business, upon the terms and conditions set forth in section 16.1;
provided, however, that any such corporation or trade or business may, by action of its board of
directors or other governing body, amend or terminate the Plan, insofar as it shall cover employees
of such corporation or trade or business, at different times and in a different manner. In the
event of any such amendment or termination by action of the board of directors or other governing
body of such a corporation or trade or business, a separate plan shall be deemed to have been
established for the employees of such corporation or trade or business, and the assets of such plan
shall be segregated from the assets of this Plan at the earliest practicable date and shall be
dealt with in accordance with the documents governing such separate plan.

          Section 16.3. Conformity to Internal Revenue Code.

          The Participating Employers have established the Plan with the intent that the Plan and Trust
will at all times be qualified under section 401(a) and exempt under section 501(a) of the Code and
with the intent that contributions under the Plan will be allowed as deductions in computing the
net income of the Participating Employers for federal income tax
purposes, and the provisions of the Plan and Trust Agreement shall be construed to effectuate
such intentions. Accordingly, notwithstanding anything to the contrary hereinbefore provided, the
Plan and the Trust Agreement may be amended at any time without prior notice to Members,

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Former
Members, Beneficiaries or any other persons entitled to benefits, if such amendment is deemed by
the Board to be necessary or appropriate to effectuate such intent.

          Section 16.4. Contingent Nature of Contributions.

     (a) All Discretionary Contributions to the Plan are conditioned upon the
issuance by the Internal Revenue Service of a determination that the Plan and Trust
are qualified under section 401(a) of the Code and exempt under section 501(a) of
the Code. If the Participating Employers apply to the Internal Revenue Service for
such a determination within 90 days after the date on which it files its federal
income tax return for its taxable year that includes the last day of the Plan Year
in which the Plan is adopted, and if the Internal Revenue Service issues a
determination that the Plan and Trust are not so qualified or exempt, all
Discretionary Contributions made by the Participating Employers prior to the date of
receipt of such a determination may, at the election of the Participating Employers,
be returned to the Participating Employers within one year after the date of such
determination.

     (b) All Discretionary Contributions and Loan Repayment Contributions to the
Plan are made upon the condition that such Discretionary Contributions and Loan
Repayment Contributions will be allowed as a deduction in computing the net income
of the Employer for federal income tax purposes. To the extent that any such
deduction is disallowed, the amount disallowed may, at the election of the
Participating Employers, be returned to the Participating Employers within one year
after the deduction is disallowed.

     (c) Any contribution to the Plan made by the Participating Employers as a
result of a mistake of fact may, at the election of the Participating Employers, be
returned to the Participating Employers within one year after such contribution is
made.

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Article XVII

Special Rules for Top Heavy Plan Years

          Section 17.1. In General.

          As of the Determination Date for each Plan Year, the Plan Administrator shall determine
whether the Plan is a Top Heavy Plan in accordance with the provisions of this Article XVII. If, as
of such Determination Date, the Plan is a Top Heavy Plan, then the Plan Year immediately following
such Determination Date shall be a Top Heavy Plan Year and the special provisions of this Article
XVII shall be in effect; provided, however, that if, as of the Determination Date for the Plan Year
in which the Effective Date occurs, the Plan is a Top Heavy Plan, such Plan Year shall be a Top
Heavy Plan Year, and the provisions of this Article XVII shall be given retroactive effect for such
Plan Year.

          Section 17.2. Definition of Top Heavy Plan.

     (a) Subject to section 17.2(c), the Plan is a Top Heavy Plan if, as of a
Determination Date: (i) it is not a member of a Required Aggregation Group, and
(ii)(A) the sum of the Cumulative Accrued Benefits of all Key Employees exceeds 60%
of (B) the sum of the Cumulative Accrued Benefits of all Employees (excluding former
Key Employees), former Employees (excluding former Key Employees and other former
Employees who have not performed any services for the Employer or any Affiliated
Employer during the immediately preceding five Plan Years if the Determination Date
is before January 1, 2002 and one Plan Year if the Determination Date is after
December 31, 2001), and their Beneficiaries.

     (b) Subject to section 17.2(c), the Plan is a Top Heavy Plan if, as of a
Determination Date: (i) the Plan is a member of a Required Aggregation Group, and
(ii)(A) the sum of the Cumulative Accrued Benefits of all Key Employees under all
plans that are members of the Required Aggregation Group exceeds 60% of (B) the sum
of the Cumulative Accrued Benefits of all Employees (excluding former Key
Employees), former Employees (excluding former Key Employees and other former
Employees who have not performed any services for the Employer or any Affiliated
Employer during the immediately preceding five Plan Years if the Determination Date
is before January 1, 2002 and one Plan Year if the Determination Date is after
December 31, 2001), and their Beneficiaries under all plans that are members of the
Required Aggregation Group.

     (c) Notwithstanding sections 17.2(a) and 17.2(b), the Plan is not a Top Heavy
Plan if, as of a Determination Date: (i) the Plan is a member of a Permissible
Aggregation Group, and (ii)(A) the sum of the Cumulative Accrued Benefits of all Key
Employees under all plans that are members of the
Permissible Aggregation Group does not exceed 60% of (B) the sum of the

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Cumulative Accrued Benefits of all Employees (excluding former Key Employees),
former Employees (excluding former Key Employees and other former Employees who have
not performed any services for the Employer or any Affiliated Employer during the
immediately preceding five Plan Years if the Determination Date is before January 1,
2002 and one Plan Year if the Determination Date is after December 31, 2001), and
their Beneficiaries under all plans that are members of the Permissible Aggregation
Group.

               Section 17.3. Determination Date.

               The Determination Date for the Plan Year in which the Effective Date occurs shall be the last
day of such Plan Year, and the Determination Date for each Plan Year beginning after the Plan Year
in which the Effective Date occurs shall be the last day of the preceding Plan Year. The
Determination Date for any other qualified plan maintained by the Employer for a plan year shall be
the last day of the preceding plan year of each such plan, except that in the case of the first
plan year of such plan, it shall be the last day of such first plan year.

               Section 17.4. Cumulative Accrued Benefits.

          (a) An individual’s Cumulative Accrued Benefits under this Plan as of a
Determination Date are equal to the sum of:

     
(i) the balance credited to such individual’s Account under this
Plan as of the most recent Valuation Date preceding the Determination
Date;

     
(ii) the amount of any Discretionary Contributions or Loan
Repayment Contributions made after such Valuation Date but on or before
the Determination Date; and

     

(iii) the amount of any distributions of such individual’s
Cumulative Accrued Benefits under the Plan (including, for Plan Years
beginning after December 31, 2001, distributions under terminated plans
that would have been included in the Required Aggregation Group if not
terminated) during the five-year period (for all distributions for Plan
Years beginning before January 1, 2002 and for in-service distributions
for Plan Years beginning after December 31, 2001) or one-year period
(for all distributions other than in-service distributions for Plan
Years beginning after December 31, 2001) ending on the Determination
Date.

For purposes of this section 17.4(a), the computation of an individual’s Cumulative
Accrued Benefits, and the extent to which distributions, rollovers and
transfers are taken into account, will be made in accordance with section 416 of the
Code and the regulations thereunder.

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          (b) For purposes of this Plan, the term Cumulative Accrued Benefits with
respect to any other qualified plan, shall mean the cumulative accrued benefits
determined for purposes of section 416 of the Code under the provisions of such
plans.

          (c) For purposes of determining the top heavy status of a Required Aggregation
Group or a Permissible Aggregation Group, the Cumulative Accrued Benefits under this
Plan and the Cumulative Accrued Benefits under any other plan shall be determined as
of the Determination Date that falls within the same calendar year as the
Determination Dates for all other members of such Required Aggregation Group or
Permissible Aggregation Group.

               Section 17.5. Key Employees.

          (a) For purposes of the Plan, the term Key Employee means any employee or
former employee of the Employer or any Affiliated Employer who, at any time during
the current Plan Year or (for Plan Years beginning before January 1, 2002) any of
the immediately preceding four Plan Years, is or was:

     (i) a Five Percent Owner;

     (ii) a person who would be described in section 1.26 if the number
“1%” were substituted for the number “5%” in section 1.26 and who has an
annual Total Compensation from the Employer and any Affiliated Employer
of more than $150,000;

     (iii) an Officer of the Employer or any Affiliated Employer who has
an annual Total Compensation greater than: (A) for Plan Years beginning
before January 1, 2002, 50% of the amount in effect under section
415(b)(1)(A) of the Code for any such Plan Year; and (B) for Plan Years
beginning after December 31, 2001, $130,000 or such higher amount as may
be prescribed under section 416(i) of the Code; or

     (iv) for Plan Years beginning before January 1, 2002, one of the
ten persons owning (or considered as owning for purposes of section 318
of the Code) the largest interests in the Employer and having an annual
Total Compensation from the Employer or any Affiliated Employer in
excess of the dollar limitation in effect under section 415(c)(1)(A) of
the Code for such Plan Year.

     (b) For the purposes of section 17.5(a):

     (i) For purposes of section 17.5(a)(iii), in the event the Employer
or any Affiliated Employer has more officers than are considered
Officers, the term Key Employee shall mean those officers,

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up to the
maximum number, with the highest annual compensation in any one of the
five consecutive Plan Years ending on the Determination Date.

     (ii) For purposes of section 17.5(a)(iv), if two or more persons
have equal ownership interests in the Employer, each such person shall
be considered as having a larger ownership interest than any such person
with a lower annual compensation from the Employer or any Affiliated
Employer.

     (c) For purposes of section 17.5(a): (i) a person’s compensation from Affiliated
Employers shall be aggregated, but his ownership interests in Affiliated Employers shall not
be aggregated; (ii) an employee shall only be deemed to be an officer if he has the power
and responsibility of a person who is an officer within the meaning of section 416 of the
Code; and (iii) the term Key Employee shall also include a deceased Key Employee. 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.

          Section 17.6. Required Aggregation Group.

          For purposes of this Article XVII, a Required Aggregation Group shall consist of (a) this
Plan; (b) any other qualified plans currently maintained (or previously maintained and terminated
within the five year period ending on the Determination Date) by any Affiliated Employers that
cover Key Employees; and (c) any other qualified plans currently maintained (or previously
maintained and terminated within the five year period ending on the Determination Date) by any
Affiliated Employers that cover Key Employees that are required to be aggregated for purposes of
satisfying the requirements of sections 401(a)(4) or 410(b) of the Code.

          Section 17.7. Permissible Aggregation Group.

          For purposes of this Article XVII, a Permissible Aggregation Group shall consist of (a) the
Required Aggregation Group and (b) any other qualified plans maintained by the Employer and any
Affiliated Employers; provided, however, that the Permissible Aggregation Group must satisfy the
requirements of sections 401(a)(4) and 410(b) of the Code.

          Section 17.8. Special Requirements During Top Heavy Plan Years.

     (a) Notwithstanding any other provision of the Plan to the contrary, for each
Top Heavy Plan Year, in the case of a Participant (other than a Key
Employee) on the last day of such Top Heavy Plan Year who is not also a
participant in another qualified plan which satisfies the minimum contribution and
benefit requirements of section 416 of the Code with respect to such Participant,
the sum of the Discretionary Contributions and Loan Repayment Contributions made
with respect to such Participant, when expressed as a percentage of his Total
Compensation for such Top Heavy Plan Year, shall not be less than 3% of

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such
Participant’s Total Compensation for such Top Heavy Plan Year or, if less, the
highest combined rate, expressed as a percentage of Total Compensation at which
Discretionary Contributions and Loan Repayment Contributions were made on behalf of
a Key Employee for such Top Heavy Plan Year. The Employer shall make an additional
contribution to the Account of each Participant to the extent necessary to satisfy
the foregoing requirement.

     (b) For any Top Heavy Plan Year beginning before January 1, 2000, the number
“1.0” shall be substituted for the number “1.25” in sections 8.2(c)(iii) and
8.2(c)(iv), except that:

     (i) this section 17.8(b) shall not apply to any individual for a Top Heavy
Plan Year that is not a Super Top Heavy Plan Year if the requirements of section
17.8(a) would be satisfied for such Super Top Heavy Plan Year if the number “4%”
were substituted for the number 3% in section 17.8(a); and

     (ii) this section 17.8(b) shall not apply to an individual for a Top Heavy
Plan Year if, during such Top Heavy Plan Year, there are no ESOP Contributions or
Loan Repayment Contributions allocated to such individual under this Plan, there
are no contributions under any other qualified defined contribution plan maintained
by the Employer, and there are no accruals for such individual under any qualified
defined benefit plan maintained by the Employer.

For purposes of this section 17.8(b), the term Super Top Heavy Plan Year means a Top Heavy Plan
Year in which the Plan would meet the definitional requirements of sections 17.2(a) or 17.2(b) if
the term “90%” were substituted for the term “60%” in sections 17.2(a), 17.2(b) and 17.2(c).

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Article XVIII

Miscellaneous Provisions

          Section 18.1. Governing Law.

          The Plan shall be construed, administered and enforced according to the laws of the State of
New Jersey without giving effect to the conflict of laws principles thereof, except to the extent
that such laws are preempted by federal law.

          Section 18.2. No Right to Continued Employment.

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

          Section 18.3. Construction of Language.

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

          Section 18.4. Headings.

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

          Section 18.5. Merger With Other Plans.

          The Plan shall not be merged or consolidated with, nor transfer its assets or liabilities to,
any other plan unless each Member, Former Member, Beneficiary and other person entitled to
benefits, would (if that plan then terminated) receive a benefit immediately after the merger,
consolidation or transfer which is equal to or greater than the benefit he would have been entitled
to receive if the Plan had terminated immediately before the merger, consolidation or transfer.

          Section 18.6. Non-alienation of Benefits.

     (a) Except as provided in section 18.6(b) and (c), the right to receive a
benefit under the Plan shall not be subject in any manner to anticipation,

64

 

alienation or assignment, nor shall such right be liable for or subject to debts,
contracts, liabilities or torts. Should any Member, Former Member or other person
attempt to anticipate, alienate or assign his interest in or right to a benefit, or
should any person claiming against him seek to subject such interest or right to
legal or equitable process, all the interest or right of such Member or Former
Member or other person entitled to benefits in the Plan shall cease, and in that
event such interest or right shall be held or applied, at the direction of the Plan
Administrator, for or to the benefit of such Member or Former Member, or other
person or his spouse, children or other dependents in such manner and in such
proportions as the Plan Administrator may deem proper.

     (b) This section 18.6 shall not prohibit the Plan Administrator from
recognizing a Domestic Relations Order that is determined to be a Qualified Domestic
Relations Order in accordance with section 18.7.

     (c) Notwithstanding anything in the Plan to the contrary, a Member’s, Former
Member’s or Beneficiary’s Accounts under the Plan may be offset by any amount such
Member, Former Member or Beneficiary is required or ordered to pay to the Plan if:

     (i) the order or requirement to pay arises: (A) under a judgment issued on or
after August 5, 1997 of conviction for a crime involving the Plan; (B) under a
civil judgment (including a consent order or decree) entered by a court on or after
August 5, 1997 in an action brought in connection with a violation (or alleged
violation) of part 4 of subtitle B of title I of ERISA; or (C) pursuant to a
settlement agreement entered into on or after August 5, 1997 between the Member,
Former Member or Beneficiary and one or both of the United States Department of
Labor and the Pension Benefit Guaranty Corporation in connection with a violation
(or alleged violation) of part 4 of subtitle B of title I of ERISA by a fiduciary
or any other person; and

     (ii) the judgment, order, decree or settlement agreement expressly provides
for the offset of all or part of the amount ordered or required to be paid to the
Plan against the Member’s, Former Member’s or Beneficiary’s benefits under the
Plan.

          Section 18.7. Procedures Involving Domestic Relations Orders.

          Upon receiving a Domestic Relations Order, the Plan Administrator shall segregate in a
separate account or in an escrow account or separately account for the amounts
payable to any person pursuant to such Domestic Relations Order, pending a determination
whether such Domestic Relations Order constitutes a Qualified Domestic Relations Order, and shall
give notice of the receipt of the Domestic Relations Order to the Participant or Former Participant
and each other person affected thereby. If, within 18 months after receipt of such Domestic
Relations Order, the Plan Administrator, a court of competent jurisdiction or another appropriate
authority determines that such Domestic Relations Order constitutes a Qualified

65

 

Domestic Relations
Order, the Plan Administrator shall direct the Trustee to pay the segregated amounts (plus any
interest thereon) to the person or persons entitled thereto under the Qualified Domestic Relations
Order. If it is determined that the Domestic Relations Order is not a Qualified Domestic Relations
Order or if no determination is made within the prescribed 18-month period, the segregated amounts
shall be distributed as though the Domestic Relations Order had not been received, and any later
determination that such Domestic Relations Order constitutes a Qualified Domestic Relations Order
shall be applied only with respect to benefits that remain undistributed on the date of such
determination. The Plan Administrator shall be authorized to establish such reasonable
administrative procedures as he deems necessary or appropriate to administer this section 18.7.
This section 18.7 shall be construed and administered so as to comply with the requirements of
section 401(a)(13) of the Code.

          Section 18.8. Leased Employees.

     (a) Subject to section 18.8(b), a leased employee shall be treated as an
Employee for purposes of the Plan. For purposes of this section 18.8, the term
“leased employee” means any person (i) who would not, but for the application of
this section 18.8, be an Employee and (ii) who pursuant to an agreement between an
Affiliated Employer and any other person (“leasing organization”) has performed for
the Affiliated Employer (or for the Affiliated Employer and related persons
determined in accordance with section 414(n)(6) of the Code), on a substantially
full-time basis for a period of at least one year, services of a type historically
performed by employees in the business field of the Employer under the primary
direction or control of an Affiliated Employer.

     (b) For purposes of the Plan:

     (i) contributions or benefits provided to the leased employee by the leasing
organization which are attributable to services performed for the Employer shall be
treated as provided by the Employer; and

     (ii) section 18.8(a) shall not apply to a leased employee if:

     (A) the number of leased employees performing services for the Employer does
not exceed 20% of the number of the Employer’s Employees who are not Highly
Compensated Employees; and

     (B) such leased employee is covered by a money purchase pension plan providing
(I) a nonintegrated contribution rate of at least 10% of the leased employee’s
compensation; (II) immediate participation; (III) full and immediate
vesting; and (IV) coverage for all of the employees of the leasing
organization (other than employees who perform substantially all of their services
for the leasing organization).

66

 

          Section 18.9. Status as an Employee Stock Ownership Plan.

          It is intended that the Plan constitute an “employee stock ownership plan,” as defined in
section 4975(e)(7) of the Code and section 407(d)(6) of ERISA. The Plan shall be construed and
administered to give effect to such intent.

67

 

          In Witness Whereof, Hudson City Savings Bank has caused this Plan to be executed by
an officer thereunto duly authorized.

	 	 	 	 	 
	 	Hudson City Savings Bank

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	Date:  	 	 
	 	 	 
	 	 	 
	 	 	 
	 

68exv10w1

Exhibit 10.1

Intel Corporation

2200 Mission College Blvd.

P.O. Box 58119

Santa Clara, CA 95052-8119

(408) 765-8080

www.intel.com

November 10, 2009

Douglas Melamed

6405 Shadow Road

Chevy Chase, MD 20815

Dear Doug:

We are pleased to offer you the position of Senior Vice President and General Counsel reporting to
me. We are delighted to make this offer of employment to you with following terms and look forward
to you joining the Intel team in Santa Clara, California beginning on November 19, 2009.

The terms of your offer, contingent upon approval of the Compensation Committee of the Board of
Directors, are as follows. You will receive an annual base salary of $600,000 per annum. Also,
you will participate in two separate cash incentive plans. The first incentive program, specific to
Executive Officers and a significant part of annual compensation, is known as the ‘Executive
Officer Incentive Plan’ or ‘EOIP’. Your annual “baseline” for the bonus beginning in 2010 is
$400,000. This incentive plan is designed such that if the company hits its performance for the
year, the resulting payout would be at three times the baseline. The payout amount is based on:
1) company financial performance against pre-set annual goals; 2) financial performance relative to
a select peer group; and 3) performance against pre-set internal operational metrics. Payouts are
made in early February based on the previous year’s results, along with a modification of +/- up to
10% based on individual performance as judged by myself as CEO and the Compensation Committee of
the Board of Directors.

Intel Corporation

An Equal Opportunity Employer

Page One

 

 

The second program is a semi-annual incentive based on the company’s profits, and modified by
company-wide customer satisfaction scores. This program is known as the ‘Employee Cash Bonus
Program’ or ‘ECBP’. Payouts occur in July and January based on the company results from the
previous six months. The annual target amount for the ECBP is 6% of your base salary and EOIP
baseline combined, which is $60,000.

In addition, a one-time sign on bonus of $500,000 will be provided less withholding taxes at the
supplemental wage tax rate. This sign on bonus will be paid to you within 30 days of the
commencement of your employment with Intel or at a later date in early 2010 based on your
preference.

We want you to share in the success of the company through the Intel Stock Option Plan. Therefore,
a New Hire Grant equal to $1,500,000.00 worth of Restricted Stock Units (RSUs) to be delivered in
equal annual installments over three years will be granted. In addition to the RSUs, the New Hire
grant will also include a stock option equal in grant date value (based on the Black-Scholes
valuation formula) of $500,000, to be delivered in equal annual installments over four years.
Additionally, there will be an acceleration of the last year of stock option vesting should you
leave Intel after 3 years of employment.

Also we are offering you an additional incentive based upon your choice of participation to include
either of the following as part of the terms of your offer.

The first of these choices is participation in the current Outperforming Stock Unit (OSU) program
cycle with a target amount of $1,000,000 that is payable in May 2012 based on company performance.
The payout range for this program is 33% to 200% of target. The second choice is to receive an
additional number of Restricted Stock Units (RSUs) that would be granted with a value of $1,000,000
with the units vesting 50% on the second anniversary of grant and 50% on the third anniversary of
grant. All your equity grants will be granted in the next regular grant cycle, in January 2010

Per our discussion, we will provide relocation assistance to the Bay Area and will provide
temporary housing and storage as needed, new home closing costs and a cash allowance to cover
miscellaneous moving expenses. Additionally, we will provide a second office for you at our
Washington DC location as well.

Intel Corporation

An Equal Opportunity Employer

Page Two

 

 

We would like to highlight a few of our outstanding benefits that make Intel a great place to
work. We offer a Stock Participation Plan, which allows you to purchase Intel’s stock at below
market value and the company also provides a Sheltered Employee Retirement Plan (SERP) and the
Sheltered Employment Retirement Plan Plus (SERPLUS) to assist you in saving for the future. Also,
we will be providing four weeks of vacation eligibility upon joining the company, along with a
range of benefits coverage including medical, dental, vision and life insurance at the beginning of
your employment with Intel.

Doug, we are very excited about your joining Intel. Intel is a dynamic and fast paced environment
and we know the company will give you ample opportunity to excel. Our success has been largely due
to the creative drive, high quality and dedication of our employees. We look forward to you
joining our team and contributing to our efforts to build a successful business and to influence
the world with our technology.

We look forward to you joining us.

	 	 	 	 	 
	 	Sincerely,

 	 
	 	/s/ Paul S. Otellini
 	 
	 	Paul S. Otellini 	 
	 	President and Chief Executive Officer 	 
	 

Intel Corporation

An Equal Opportunity Employer

Page Three

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