Document:

EX-10.25

 

Exhibit 10.25

INDEPENDENCE COMMUNITY BANK

Executive Management

Incentive Compensation Plan

for the Fiscal Year of January 1, 2004 — December 31, 2004

I.      INTRODUCTION

     The Boards of Directors of Independence Community Bank Corp. (“ICBC” or “the Company”) and
Independence Community Bank (“the Bank”) have approved a strategy designed to drive the business of
ICBC to operating and profit levels that will make ICBC a top performer in its industry. The
Compensation Committee (“Committee”) and the Board of Directors of ICBC and the Bank have
considered and approved this Plan to assist in attaining that objective. Accordingly, this Plan
will focus on those critical performance measures that the Board believes are very significant to
the success of the institution, namely diluted earnings per share (EPS) and return on average
assets (ROAA).

     The Committee and the Board acknowledge that the evolution of ICBC into a top performer
relative to its peers is a multi-year process. As a result, the Committee and the Board have
indicated that they expect to continue the Plan or adopt new incentive compensation plans in future
years with revised and updated goals and targets as to EPS and ROAA or other measurements adopted
annually to assess the progress management is making towards achieving the performance of the top
performing institutions in the industry — for example return on equity, efficiency ratio and net
interest margin. In particular, an annual evaluation will consider progress made in comparison to
the performance of a peer group of top-performing financial institutions. Accordingly, Plan
performance goals and targets approved in future years will be based on this long-term objective.

     This Plan will be known as the Independence Community Bank Executive Management Incentive
Compensation Plan for January 1, 2004 — December 31,
2004 (“the FY2004 Plan”). The January 1,
2004 — December 31, 2004 period is the “Plan Year”.

II.      GENERAL

	A.  	Participants in the FY2004 Plan will be the members of the Bank’s Management Committee,
namely the following officers:

Alan H. Fishman, President and Chief Executive Officer

Brendan J. Dugan, Executive Vice President — Business Banking

Gary M. Honstedt, Executive Vice President — Commercial Real Estate Lending

Harold A. McCleery, Executive Vice President — Chief Credit Officer

Terence J. Mitchell, Executive Vice President — Consumer Banking

Frank W. Baier, Executive Vice President — Chief Financial Officer and

                                                   Treasurer

Stephen J. Glass, Senior Vice President — Chief Information Officer

Frank S. Muzio, Senior Vice President and Controller

Santiago Patino, Senior Vice President — Corporate Operations

Ellen K. Rogoff, Senior Vice President — Director of Human Resources

Janice Schillig, Senior Vice President — Director of Marketing

John K. Schnock, Senior Vice President, Secretary and Counsel

Nicholas Tsoumpariotis, Senior vice President and Auditor (as of 8/1/2004)

	B.  	Awards granted under the FY2004 Plan will be made by the Committee upon consideration of the
various factors set forth herein. However, awards will be made in the sole discretion of the
Committee. The Committee shall have the sole

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	   	authority, subject to the Board of Directors, to interpret and implement the provisions of the
FY2004 Plan. No Participant shall be entitled to any award unless and until the Committee
notifies a FY2004 Plan Participant of his or her specific award under the FY2004 Plan. Neither
the terms of the FY2004 Plan nor any award granted hereunder shall create any right of a FY2004
Plan Participant to continued employment with ICBC, the Bank or any affiliate thereof.
	 
	C.  	The FY2004 Plan is designed to provide FY2004 Plan Participants with awards equal in value to
a specified percentage (the “Target Bonus”) of his or her annual base salary at the end of the
Plan Year based upon his or her executive rank (President, Executive Vice President or Senior
Vice President). The award may be increased or decreased above or below the Target Bonus
depending on actual performance during the Plan Year relative to the target thresholds
described herein.
	 
	   	          Awards granted under the FY2004 Plan will be made by the Committee upon consideration of
the following factors:

	 	(1)  	Executive level of each Participant as provided herein;
	 
	 	(2)  	Corporate Performance Component: the achievement of EPS and ROAA targets, with
the weighting of this component for awards granted with respect to the Plan Year
determined by executive level as follows, President and Chief Executive Officer — 100%,
Executive Vice Presidents and Senior Vice President  — 75%; and
	 
	 	(3)  	Business Unit/Function Performance Component: based upon recommendation of the
President and CEO, with the weighting of this component for the Plan Year determined by
executive level as follows, Executive Vice Presidents and Senior Vice Presidents — 25%.

	D.  	Once the total award is determined, the award will be due and payable in cash and ICBC stock
as described herein (unless deferred by the Fiscal Year 2004 Plan Participant).
	 
	E.  	The Committee and the Board may also adjust the amounts of awards granted hereunder upon
consideration of unusual factors or unanticipated extraordinary events which have a
significant impact on the goals and targets established hereunder.

Newly hired employees and others promoted to or made a member of the Bank’s Management
Committee during the Plan Year may be considered for participation in the FY2004 Plan. If
any such person is selected by action of the Committee to be included within the list of
FY2004 Plan Participants, he or she shall be eligible to receive a pro-rated award based on
his or her period of service with the Bank during the Plan Year. In addition, Participants
whose employment terminates prior to payment of an award may be entitled to receive a
pro-rated award payable entirely in cash if recommended by the President and CEO and
approved by the Committee.

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III.     SPECIFIC FY 2004 PLAN STRUCTURE

A. Executive Level Target Bonus Component Allocation

												 
	 
	 	Executive Level	 	 	Target	 	 	Corporate	 	 	BU/Functional	 
	 	 	 	 	Bonus %	 	 	Performance	 	 	Component	 
	 	 	 	 	Base Salary	 	 	Component Weighting	 	 	Weighting	 
	 	President & CEO
	 	 	100%	 	 	100%	 	 	—	 
	 	Executive Vice

Presidents
	 	 	65%	 	 	75%	 	 	25%	 
	 	Senior Vice

Presidents
	 	 	45%	 	 	75%	 	 	25%	 
	 

B. Corporate Performance Component

														
	 	 	 	EPS	 	 	Payout	 	 	ROAA	 	 	 	 
	 	 	 	 	 	 	Percentage	 	 	 	 	 	 	 
	 

	Maximum
	 	 	$3.14 and Above	 	 	150%	 	 	1.512% and Above	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	3.13	 	 	145%	 	 	1.507	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	3.12	 	 	140%	 	 	1.502	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	3.11	 	 	135%	 	 	1.497	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	3.10	 	 	130%	 	 	1.493	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	3.09	 	 	125%	 	 	1.488	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	3.08	 	 	122%	 	 	1.483	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	3.07	 	 	119%	 	 	1.478	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	3.06	 	 	116%	 	 	1.474	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	3.05	 	 	113%	 	 	1.469	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	3.04	 	 	110%	 	 	1.464	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	3.03	 	 	108%	 	 	1.459	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	3.02	 	 	106%	 	 	1.455	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	3.01	 	 	104%	 	 	1.450	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	3.00	 	 	102%	 	 	1.445	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	Target
	 	 	$2.99	 	 	100%	 	 	1.440%	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	2.98	 	 	98%	 	 	1.435	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	2.97	 	 	96%	 	 	1.430	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	2.96	 	 	94%	 	 	1.425	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	2.95	 	 	92%	 	 	1.421	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	2.94	 	 	90%	 	 	1.416	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	2.93	 	 	87%	 	 	1.411	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	2.92	 	 	84%	 	 	1.407	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	2.91	 	 	81%	 	 	1.402	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	2.90	 	 	78%	 	 	1.397	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	2.89	 	 	75%	 	 	1.392	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	2.88	 	 	70%	 	 	1.388	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	2.87	 	 	65%	 	 	1.383	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	2.86	 	 	60%	 	 	1.378	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	2.85	 	 	55%	 	 	1.373	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	2.84	 	 	50%	 	 	1.368%	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	Threshold
	 	 	Below $2.84	 	 	0%	 	 	Below 1.368%	 	 	 	 

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     EPS and ROAA are each weighted 50% in calculating the portion of the award earned for
corporate performance. The above scale is not subject to interpolation (i.e., an EPS of $2.978 is
counted as $2.97 and is paid out at the 96% rate. Each $.01 increment in EPS is treated as a
hurdle. The same principle applies for ROAA, i.e., an ROAA of 1.463% is counted as 1.459% and is
paid out at the 108% rate. The EPS and ROAA thresholds must both be achieved before any award is
paid.

     There will be no awards earned under the FY2004 Plan unless EPS for the Plan Year is at least
$2.84 and ROAA is at least 1.368%; at achievement of EPS of $3.14 or higher and ROAA of
1.512% or Higher, the corporate performance component payout percentage would be 150% of target,
the maximum.

C. Business Unit/Functional Performance Component

     Each business unit will be evaluated by the President and CEO on its overall performance
during the Plan Year as well as the attainment of specific operating initiatives assigned to the
Business Unit at the start of the Plan Year. There will be no awards under this component unless
the threshold corporate performance levels of at least $2.84 EPS and 1.368% ROAA are achieved. The
Business Unit/Functional Performance Component payout percentage will be based on the following
performance ratings:

	 	 	 	 	 	 	 	 
	 
	 	BU/Functional	 	 	Percentage of	 
	 	Performance Rating	 	 	Award Earned	 
	 	Outstanding

Performance

	 	 	125% - 150%
	 
	 	Exceeded Expectations

	 	 	110% - 125%
	 
	 	Fully Met Expectations

	 	 	 	100	%	 
	 	Met Minimum

Expectations

	 	 	50% - 80%
	 
	 	Did Not Meet

Expectations

	 	 	 	0	%	 
	 

     The Business Unit/Functional Performance Component percentage payout can range from 0% for Did
Not Meet minimum performance criteria to a maximum of 150% for Outstanding Performance. The
President and CEO will provide a written report to the Committee with respect to his recommendation
of both the Business Unit/Functional Performance Component rating and the percentage of award
earned with respect to each FY2004 Plan Participant. The President and CEO’s award will not
include the Business Unit/Functional Performance Component. The Committee will determine the final
Business Unit/Functional Performance Component and percentage of award earned using the President
and CEO’s recommendation and such other information as it deems appropriate.

IV.  PAYMENT OF AWARDS

	A.  	Once awards have been calculated in accordance with the foregoing process and submitted to
and approved by the Committee, the Committee shall notify each of the FY2004 Plan participants
in writing of the amount, if any, of his or her award. Thereafter, payment of any such awards
will be made as follows:

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	 	(1)  	Subject to the provisions of subsection (3) hereof, a cash payment equal to
such percentage of the award as shown in the following table (unless the Participant
has made a timely election to defer all or part of the award or is required to defer
receipt of such payment due to the applicability of Section 162(m) of the Internal
Revenue Code) will be made within 15 days of the date of the award notice:

President and CEO — 60%

Executive Vice President — 65%

Senior Vice President — 70%

	 	(2)  	In the discretion of the Committee (the “Compensation Committee”)
administering the 1998 Recognition and Retention Plan (the “RRP”) or the 2002 Stock
Incentive Plan (“SIP”) a grant of shares of ICBC common stock pursuant to the RRP or
SIP (unless the FY2004 Plan Participant has made a timely election to defer receipt of
all or a portion of such shares or is required to defer receipt of such shares due to
the applicability of Section 162(m) of the Internal Revenue Code) shall be made with
respect to the remaining portion of the award. It is expected that such grant shall
vest over a three year period, with one-third of such shares vesting on each
anniversary date of the granting of such award for a three-year period. The number of
            shares awarded shall be determined by discounting the closing price of ICBC common
stock on the date the award is approved by 15% and dividing the adjusted price into
the dollar amount of the applicable percentage of the award. A Participant’s unvested
portion will become fully vested upon his or her death, “disability”, “retirement” or
a “change in control” only as provided in the RRP or the SIP. However, the award of a
Participant whose employment terminates prior to payment of the award shall be paid
entirely in cash.
	 
	 	(3)  	In the event the Compensation Committee determines not to grant restricted
stock awards with respect to any portion of an award, then such remaining amount shall
be paid in cash within 15 days of the date of the Compensation committee’s
determination not to make such restricted stock awards.

	B.  	(1) 	In the event that a FY2004 Plan Participant is a “covered employee” for purposes of
Section 162(m) of the Internal Revenue Code and such FY2004 Plan Participant’s applicable
employee remuneration in a particular tax year exceeds or is likely to exceed the limitation
as specified in Section 162(m) of the Code, the Committee may request that such FY2004 Plan
Participant defer the payment of all or a portion of the FY2004 Plan Participant’s award to be
received under the FY2004 Plan or such other plans and programs, employment agreements and
arrangements of the Company to the extent necessary to avoid the payment of employee
remuneration for such tax year in excess of the Section 162(m) limit.

	 	(2)  	Notwithstanding any other provision of the FY2004 Plan, any FY2004 Plan
Participant may elect, consistent with any rules and regulations established by the
Committee, to defer the receipt of all or any portion of an award granted hereunder.
The election to defer the receipt of the award must be made no later than two months
before the end of the calendar year preceding the calendar year in which the FY2004
Plan Participant would otherwise have an unrestricted right to receive such award.
Any election to defer the receipt of an award, in whole or in part, shall be
irrevocable as long as the FY2004 Plan Participant remains an employee of the Company,
the Bank or one of their subsidiaries.
	 
	 	(3)  	The Committee may, at its sole discretion, allow for the early payment of a
FY2004 Plan Participant’s deferred award account in the event of an

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	 	   	“unforeseeable emergency” or in the event of the death or disability of the FY2004 Plan
Participant. An “unforeseeable emergency” means an unanticipated emergency caused by
an event beyond the control of the FY2004 Plan Participant that would result in severe
financial hardship if the distribution were not permitted. Such distributions shall be
limited to the amount necessary to sufficiently address the financial hardship. Any
distributions under this provision shall be consistent with the Internal Revenue Code
and the regulations promulgated thereunder. Additionally, the Committee may use its
discretion to cause award accounts to be distributed when continuing the program is no
longer in the best interest of the Company or the Bank.

	 	(4)  	No FY2004 Plan Participant or other person shall have any interest in any
fund or in any specific asset of the Company or the Bank by reason of any amount
credited pursuant to the provisions hereof. Any amounts payable pursuant to the
provisions hereof shall be paid from the general assets of the Company or the Bank or
a subsidiary thereof and no FY2004 Plan Participant or other person shall have any
rights to such assets beyond the rights afforded general creditors of the Company or
the Bank. However, the Company or the Bank or a subsidiary thereof shall have the
right to establish a reserve, trust or make any investment for the purpose of
satisfying the obligations created under the FY2004 Plan; provided, however, that no
FY2004 Plan Participant or other person shall have any interest in such reserve, trust
or investment.
	 
	 	(5)  	To the extent not otherwise inconsistent with the provisions of the FY2004
Plan, FY2004 Plan Participants may defer awards hereunder in accordance with the
provisions of the Independence Community Bank Corp. Deferred Compensation Plan.

V. PROVISIONS RELATING TO SECTION 162(m)

OF THE INTERNAL REVENUE CODE.

It is the intent of the Company that any compensation (including any award) deferred under the
FY2004 Plan by a person who is, with respect to any year of settlement, deemed by the Committee to
be a “covered employee” within the meaning of Section 162(m) of the Internal Revenue Code and the
regulations thereunder, which compensation constitutes either “qualified performance-based
compensation” within the meaning of Section 162(m) and the regulations thereunder or compensation
not otherwise subject to the limitation on deductibility under Section 162(m) and the regulations
thereunder, shall not, as a result of deferral hereunder, become compensation with respect to which
the Company in fact would not be entitled to a tax deduction under Section 162(m) and the
regulations thereunder. Accordingly, unless otherwise determined by the Committee, if any
compensation would become so disqualified under Section 162(m) and the regulations thereunder as a
result of deferral hereunder, the terms of such deferral shall be automatically modified to the
extent necessary to ensure that the compensation would not, at the time of settlement, be so
disqualified.

6EX-10.26

 

Exhibit 10.26

Independence Community Bank 

Severance Benefit Plan

1. Introduction.

     The purpose of this Plan is to provide specified severance benefits on a uniform basis to
eligible employees whose employment is involuntarily terminated (other than for Cause). This
document constitutes the written instrument under which this Plan is maintained and supersedes any
prior plan, program or practice of the Company that provides severance benefits to Covered
Employees.

2. Definitions.

     2.1 “Administrator” means the Director of Human Resources of the Company or any person to whom
the Administrator has delegated any authority or responsibility pursuant to Section 8(c), but only
to the extent of such delegation.

     2.2 “Cause” means a Covered Employee’s personal dishonesty, incompetence, willful misconduct,
breach of fiduciary duty, intentional failure to perform stated duties, excessive absences from
work or willful violation of any law, rule or regulation (other than traffic violations or similar
offenses).

     2.3 “Company” means the Independence Community Bank and any successor, by merger, acquisition,
consolidation or otherwise to the business formerly carried on by the Company, without regard to
whether or not such successor affirmatively adopts or formally continues this Plan.

     2.4 “Covered Employee” means any full- time employee who has completed one (1) full year of
service with the Company as of the date of the termination of his/her employment. Provided,
however, the Chief Executive Officer of the Company may -

	 	(a)  	Designate in writing as Covered Employees other limited
classifications of individuals who provide services to the Company and
determine other terms and conditions governing their participation in this
Plan, and
	 
	 	(b)  	Enter into an individual written agreement with any Covered
Employee which provides for the payment under this Plan of a Severance Benefit
on terms and conditions that differ from those applicable to otherwise
similarly situated Covered Employees.

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

     2.6 “Full-Time Employee” means any employee who averaged at least 20 hours of work for the
company each week within year preceding the termination of his/her employment.

 

 

     2.7 “Incompetence” means a Covered Employee’s failure to competently perform his or her
duties, on a sustained basis while actively employed by the Company.

     2.8
“Payment Amount” or “Severance Benefit” means the number of weeks of regular straight time
pay, excluding any commissions, bonuses or differentials in pay of any kind, multiplied by each
full year of the Covered Employee’s length of continuous service specified below, up to a maximum
payment of the number of weeks of regular straight time pay specified below (unless otherwise
specified in a written agreement with the Covered Employee under Section 4.2) less any amount
received by the Covered Employee under any other Plan, Program, Policy or Agreement providing for
the payment of benefits by the Company upon termination, except retention bonuses or accrued
vacation pay. Provided, however, that a Covered Employee’s Payment Amount shall be no less than
four (4) weeks of regular straight time pay. Provided further, that the Payment Amount shall be
reduced by any amounts owed by the Covered Employee to the Company at the time of termination.

	 	 	 	 	 
	 	 	Weeks of Pay Per Full Year of Service	 	Maximum Payment
	 
	 	 	 	 
	Officers:

	 	Two Weeks
	 	Fifty-Two Weeks
	 
	 	 	 	 
	Non Officers:

	 	Two Weeks
	 	Twenty-Six Weeks

     2.9 “Plan” means the Independence Community Bank Severance Benefit Plan as set forth in this
document, as amended from time to time.

     2.10 “Service” means the continuous period beginning with a Covered Employee’s most recent
date of hire by the Company or its subsidiaries or predecessors, or a company that was acquired by
the Company by merger, acquisition, consolidation or otherwise, and ending on the date the Covered
Employee’s employment is terminated by the Company or its subsidiaries or successors.

3. Eligibility for Severance Benefit.

     3.1 General Eligibility Rules. An individual is eligible for a Severance Benefit under this
Plan, only if -

	 	(a)  	His or her employment is involuntarily terminated (other than
for Cause),
	 
	 	(b)  	He or she is a Covered Employee on the date his or her
employment is terminated, whether or not he or she was on an approved leave of
absence on that date, and.
	 
	 	(c)  	He or she releases the Company from any claim he or she may
have arising out of his or her employment or the termination of such
employment, in a form acceptable to the Company and, if appropriate, in the
Company’s

 

 

	 	   	sole discretion, agrees to refrain from soliciting the Company’s employees
and engaging in competitive activities for a reasonable period of time.

3.2 Rules Regarding Terminations.

     3.2.1 A Covered Employee shall not be treated as having been involuntarily terminated for
purposes of Section 3.1 and is not eligible for a Severance Benefit if the Administrator determines
that he or she -

	 	(a)  	Voluntarily resigned, or retired, even if after he or she
received advance notice of his or her involuntary termination;
	 
	 	(b)  	Accepts an offer of a position with the Company or one of its
subsidiaries or another company which acquires, is acquired by or merges with
the Company;
	 
	 	(c)  	Resigned or was terminated after declining to accept, an offer
of, or a transfer to, a comparable position with the Company or one of its
subsidiaries or affiliates or another company which acquires, is acquired by or
merges with the Company, or a company which is providing services to the
Company, pursuant to an independent contract, with no significant reduction in
his or her relative employment status or rate of compensation, unless the
location of the job is substantially different from the Covered Employee’s then
current job and creates an undue hardship on the employee, as determined by the
Administrator.
	 
	 	(d)  	Resigned or was terminated in circumstances that would have
justified his or her discharge for Cause; or
	 
	 	(e)  	Failed to return to active employment with the Company on or
before the last day of an approved leave of absence ending prior to his or her
involuntary termination date.

     3.2.2 Notwithstanding Section 3.1 or 3.2.1, a Covered Employee is eligible for a Severance
Benefit if the Administrator determines that he or she resigned or was terminated after being
transferred, or declining to accept a transfer, to a comparable
position with the Company or one of
its subsidiaries or affiliates, or another company that acquires the Company, or an independent
contractor which is providing services to the Company, which would have resulted in (a) a
significant reduction (unless justified by Incompetence) in his or her relative employment status
or rate of compensation as of the date of such offer or transfer, or (b) as determined by the
Administrator, an involuntary change in the location of his or her principal place of employment
to a new location that would create an undue hardship on the employee, provided the Covered
Employee releases the Company, as described in Section 3.1.

4. Payment of Severance Benefit.

     4.1 General Payment Rules. On the date a Covered Employee becomes eligible to

 

 

receive a Severance Benefit under and subject to the terms of Section 3, he or she will be entitled
to receive a Severance Benefit in a single lump sum payment equal to the applicable Payment Amount
determined under Section 2.8. Payment of the lump sum Payment Amount will be made on or as soon
as administratively practicable after the date a Covered Employee becomes entitled to receive the
Benefit.

     4.2 Alternate Arrangements. The amount and time for payment of the Severance Benefit payable
to any Covered Employee who is, in accordance with Section 2.4, (a) employed in an employment
classification designated by the Chief Executive Officer of the Company as eligible to participate
in this Plan or (b) a party to an agreement with the Company which provides for Severance Benefit
payments on terms and conditions that differ from those applicable to similarly situated Covered
Employees, shall be determined by reference to the written document that provides for the coverage
of his or her employment classification and/or sets forth the terms of his or her individual
arrangement.

5. Confidentiality Rules.

     No Covered Employee shall have any right to receive, and the Company shall have no obligation
to pay, any Severance Benefit that would otherwise be payable under this Plan if the Administrator
determines that the Covered Employee has violated any confidentiality, non-competition,
non-solicitation, or other similar rule or agreement governing the Covered Employee’s employment by
or provision of services to the Company or any of its affiliates.

6. Nonpayment Events.

     No Severance Benefit is payable under Section 3 to a Covered Employee nor shall the time for
payment of any Severance Benefit be accelerated, solely by reason of a change in the ownership of
the Company.

     No Severance Benefit is payable under this Plan to the estate or other survivor of any Covered
Employee by reason of his or her death on or before the date on which the event triggering the
right to receive the Benefit occurs.

7. Withholding.

     The Company will withhold from any Severance Benefit payment all federal, state and local
income or other taxes required to be withheld therefrom and any other required payroll deductions.

8. Administration.

     This Plan is administered and interpreted by the Administrator, in his or her sole discretion.

	 	(a)  	The Administrator is the “named fiduciary” of this Plan for
purposes of ERISA and, when acting in such capacity, shall be subject to the
fiduciary responsibility standards of ERISA.

 

 

	 	(b)  	All decisions of, and any other action taken by, the
Administrator with respect to this Plan, and any interpretation by the
Administrator of any term or condition of this Plan or any related document,
shall be conclusive and binding on all persons, and shall be given the maximum
possible deference allowed by law.
	 
	 	(c)  	The Administrator has the authority and responsibility to act
for the Company as to all matters pertaining to this Plan; provided that any
action which could significantly increase the cost of this Plan (other than
individual benefit determinations) shall be subject to the prior approval of
the Chief Executive Officer of the Company.
	 
	 	(d)  	The Administrator may delegate in writing to any other person
any of his or her authority or responsibilities with respect to this Plan.

9. Amendment or Termination.

     The Company reserves the right, by action of its Chief Executive Officer, in his or her sole
discretion, to amend, modify, revoke, rescind or terminate this Plan by a written instrument at any
time, without advance notice to any Covered Employee; provided, however, that with regard to
benefits available to any Covered Employee, any amendment, termination or other change in this Plan
on or after the Covered Employee’s termination of employment, shall to the extent that the effect
of such action would be to eliminate or reduce the value of any benefit the Covered Employee would
have been or become entitled to receive under this Plan but for the amendment, termination or other
change, be null and void and shall have no effect with regard to such Covered Employee.

10. Claims Procedure.

     Any employee who believes he or she is entitled to any payment under this Plan may submit a
claim in writing to the Administrator. If the claim is denied (either in full or in part), the
employee will receive a written notice explaining the specific reasons for the denial and referring
to the provisions of this Plan on which the denial is based. The notice will describe any
additional information needed to support the claim. The denial notice will be provided within 90
days after the claim is received. If special circumstances require an extension of time (up to 90
days), written notice of the extension will be given to the employee within the initial 90-day
period.

11. Appeals Procedure.

     If an employee’s claim is denied, the employee (or his or her duly authorized representative)
may apply in writing to the Administrator for a review of the decision denying the claim. The
employee (or representative) then will have the right to review pertinent documents and to submit
issues and comments in writing. The Administrator will provide written notice of his or her
decision on review within 60 days after he or she receives a review request. If special
circumstances require an extension of time (up to 60 days), written notice of the extension will

 

 

be given to the employee within the initial 60-day period.

12. Arbitration of Disputes.

     Any controversy, claim or other dispute arising out of or relating to this Plan may be settled
by binding arbitration in New York, New York, in accordance with the Commercial Arbitration Rules
of the American Arbitration Association (“AAA”), as they now exist. Notwithstanding the AAA rules,
(a) either party may strike from a list of prospective arbitrators any individual who is regarded
by that party as not appropriate for the dispute; and (b) if the arbitrator appointment cannot be
made from the initial list circulated by the AAA, a second list and, if necessary, a third list
shall be circulated and exhausted before the AAA is empowered to make the appointment. Judgment on
an arbitration award may be entered in any court having jurisdiction over the parties. The parties
shall keep confidential from third parties (other than the arbitrator) the existence of any
disputes and their outcome unless otherwise required by law. In the resolution of disputes under
this Plan, any arbitrator, judge or other person shall interpret this Plan in a manner which gives
effect to the purposes and terms of this document, as in effect on the date of the covered
employee’s termination of employment, and without regard to any change to the document that is
thereafter adopted insofar as such change might otherwise support a benefit determination which is
adverse to any Covered Employee. Provided, that nothing contained herein shall deprive a Covered
Employee of his or her right to commence a Civil Action under Section 502(a) of ERISA, after
exhausting the Claims and Appeal Procedures, in lieu of arbitration.

13. Plan Binding on Successors.

     This Plan shall be binding upon the Company and any person who (a) is a successor by
acquisition or otherwise to the business formerly carried on by Independence Community Bank or an
affiliate of any such person, and (b) becomes the employer of any Covered Employee by reason of (or
as the direct result of) a merger or acquisition, without regard to whether or not such person
affirmatively adopts or formally continues this Plan. The Covered Employees, to the extent they
are otherwise eligible for benefits under this Plan, are intended third-party beneficiaries of this
provision.

14. Inalienability.

     In no event may any current or former employee sell, transfer, anticipate, assign or otherwise
dispose of any right or interest under this Plan. At no time will any such right or interest under
this Plan be subject to the claims of creditors nor liable to attachment, execution or other legal
process.

15. Applicable Law.

     The provisions of this Plan will be construed, administered and enforced in accordance with
ERISA and, to the extent applicable, the laws of the State of New York.

 

 

16. Severability.

     If any provision of this Plan is held invalid or unenforceable, its invalidity or
unenforceability will not affect any other provision of this Plan, and this Plan will be construed
and enforced as if such provision had not been included.

17. Execution

     In Witness Whereof, Independence Community Bank, by its duly authorized officers, has executed
this Plan on the date indicated below.

	 	 	 	 	 
	 	INDEPENDENCE COMMUNITY BANK 

 	 
	Dated December 17, 2004 	By  	Alan H. Fishman
 	 
	 	 	Title:  President and Chief Executive Officer 	 
	 	 	 	 
	 
	 	 	 
	Dated December 17, 2004 	By  	Ellen K. Rogoff
 	 
	 	 	Title:   Senior Vice President - 	 
	 	 	Director
of Human Resources

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