Document:

ex10-4.htm

     

    Exhibit
      10.4

    
      EMPLOYMENT
        AGREEMENT

    

    
      

    

    
      AGREEMENT,
        dated this 27th day of September, 2007, among First Defiance Financial Corp.
        ("First Defiance") an Ohio-chartered corporation and savings and loan holding
        company, First Federal Bank of the Midwest ("First Federal"), a federally
        chartered stock savings bank, both of which are located in Defiance, Ohio,
        and
        Gregory R. Allen (the "Executive"). First Defiance and First Federal are
        referred to jointly herein as the "Companies."

    

    
      

    

    
      WITNESSETH:

    

    
      

    

    
      WHEREAS,
        the Executive is presently Executive Vice President of First Defiance and
        Market
        Area President of First Federal;

    

    
      

    

    
      WHEREAS,
        the Companies desire to continue to retain the Executive's services in such
        capacities; and

    

    
      

    

    
      WHEREAS,
        the Executive is serving the Companies pursuant to the terms of a previous
        Agreement dated December 30, 1998 (the “Prior Agreement”);

    

    
      

    

    
      WHEREAS,
        parties desire to amend and restate the Prior Agreement;

    

    
      

    

    
      NOW
        THEREFORE, in consideration of the premises and the mutual agreements herein
        contained, the parties hereby agree as follows:

    

    
      

    

    
      1.           Definitions.
        The following words and terms shall have the meanings set forth below for
        the
        purposes of this Agreement:

    

    
      

    

    
      (a)           Annual
        Compensation. The Executive's "Annual Compensation" for purposes of this
        Agreement shall be deemed to mean the average annual Compensation paid to
        the
        Executive by the Companies during the five most recent taxable years ending
        prior to the date of termination.

    

    
      

    

    
      (b)           Base
        Salary.  "Base Salary" shall have the meaning set forth in Section
        3(a) hereof.

    

    
      

    

    
      (c)           Bonus.  "Bonus"
        shall have the meaning set forth in Section 3(a) hereof.

    

    
      

    

    
      (d)           Cause.  "Cause"
        shall mean personal dishonesty, incompetence, willful misconduct, breach
        of
        fiduciary duty involving personal profit, intentional failure to perform
        stated
        duties, willful violation of any law, rule or regulation (other than traffic
        violations or similar offenses) or final cease-and-desist order or material
        breach of any provision of this  Agreement.  For purposes of
        this paragraph, no act or failure to act on the Executive's part shall be
        considered "willful" unless done, or omitted to be done, by the Executive
        not in
        good faith and without reasonable belief that the Executive's action or omission
        was in the best interest of the Companies.

    

    
      
         

      

      
        1

        
          

        

      

      
         

        Exhibit
          10.4

      

    

    
      (e)           Change
        in Control of First Defiance. "Change in Control" of First Defiance shall
        have
        the meaning set forth in Section 409A(a)(2)(A)(v) of the
        Code.

    

    
      

    

    
      (f)           Code.  "Code"
        shall mean the Internal Revenue Code of 1986, as amended.

    

    
      

    

    
      (g)           Compensation.  "Compensation"
        shall have the meaning set forth in Section 3(a) hereof.

    

    
      

    

    
      (h)           Date
        of Termination.  "Date of Termination" shall mean (i) if the
        Executive's employment is terminated by the Companies for any reason, the
        date
        on which a Notice of Termination is given or such later date as may be specified
        by the Companies in such Notice, or (ii) if the Executive's employment is
        terminated by the Executive, the date of termination shall be a date not
        less
        than 30 days from the date the Notice of Termination is delivered by the
        Executive to the Companies, unless the Companies, in their sole discretion,
        designate an earlier date.

    

    
      

    

    
      (i)           Disability.
        "Disability" shall mean any physical or mental impairment that qualifies
        the
        Executive for disability benefits under the applicable long-term disability
        plan
        maintained by the Companies or any subsidiary or, if no such plan applies,
        which
        would qualify the Executive for disability benefits under the Federal Social
        Security System.

    

    
      

    

    
      (j)           Good
        Reason.  "Good Reason" shall mean:

    

    
      

    

    
      (i)           Without
        the Executive's express written consent:

    

    
      

    

    
      (a)           the
        assignment by the Companies to the Executive of any duties that, in the
        Executive's good faith determination, are materially inconsistent with the
        Executive's positions, duties, responsibilities and status with the Companies
        immediately prior to such assignment, or in the event of a Change in Control,
        immediately prior to such a Change in Control of First
        Defiance;

    

    
      

    

    
      (b)           in
        the Executive's good faith determination, a material change in the Executive's
        reporting responsibilities, titles or offices as an employee and as in effect
        immediately prior to such change or, in the event of a Change in Control,
        immediately prior to such a Change in Control of First Defiance;
        or

    

    
      

    

    
      (c)           any
        removal of the Executive from or any failure to re-elect the Executive to
        the
        offices of Executive Vice President of First Defiance and Market Area President
        of First Federal, except in connection with cause, Disability, Retirement,
        or
        the Executive's death;

    

    
      

    

    
      (ii)           Without
        the Executive's express written consent, a reduction by the Companies in
        the
        Executive's Base Salary, as the same may be increased

    

    
      
         

      

      
        2

        
          

        

      

      
         

        Exhibit
          10.4

      

    

    
      from
        time
        to time, or fringe benefits;

    

    
      

    

    
      (iii)           The
        principal executive office of the Companies is relocated outside of the
        Defiance, Ohio area or, without the Executive's express written consent,
        the
        Companies require the Executive to be based anywhere other than an area in
        which
        the Companies' principal executive office is located, except for required
        travel
        on business of the Companies to an extent substantially consistent with the
        Executive's present business travel obligations;

    

    
      

    

    
      (iv)           Without
        the Executive's express written consent, the Companies fail to provide the
        Executive with the same fringe benefits that were provided to the Executive
        immediately prior to a Change in Control of First Defiance, or with a package
        of
        fringe benefits (including paid vacations) that, though one or more of such
        benefits may vary from those in effect immediately prior to such Change in
        Control, is substantially comparable in all material respects to such fringe
        benefits taken as a whole;

    

    
      

    

    
      (v)           Any
        purported termination of the Executive's employment for Cause, Disability
        or
        Retirement that is not effected pursuant to a Notice of Termination satisfying
        the requirements of paragraph (1) below; or

    

    
      

    

    
      (vi)           The
        failure by First Defiance to obtain the assumption of and agreement to perform
        this Agreement by any successor as contemplated in Section 10
        hereof.

    

    
      

    

    
      (k)           IRS.  “IRS”
        shall mean the Internal Revenue Service.

    

    

    
      (l)           Notice
        of Termination.  "Notice of Termination" shall mean a dated notice
        that (i) indicates the specific termination provision in this Agreement relied
        upon, (ii) sets forth in reasonable detail the facts and circumstances claimed
        to provide a basis for termination of Executive's employment under the provision
        so indicated, (iii) specifies a Date of Termination, and (iv) is given in
        the
        manner specified in Section 11 hereof.

    

    
      

    

    
      (m)           Retirement.  "Retirement"
        shall mean voluntary termination by the Employee in accordance with the
        Companies' retirement policies, including early retirement, generally applicable
        to their salaried employees.

    

    
      

    

    
      2.           Term
        of Employment.

    

    
      

    

    
      (a)           The
        Companies hereby employ the Executive as Executive Vice President of First
        Defiance and Market Area President of First Federal.  Executive hereby
        accepts said employment and agrees to render such services to the Companies
        on
        the terms and conditions set forth in this Agreement. The term of employment
        under this Agreement shall be a three-year term, which shall be deemed to
        have
        commenced on January 1, 2007. However, at a meeting of the Companies' Board
        of
        Directors no later than 30 days prior to the first anniversary of the
        date

    

    
      
         

      

      
        3

        
          

        

      

      
         

        Exhibit
          10.4

      

    

    
      of
        this
        Agreement and each anniversary thereafter, the Board of Directors of the
        Companies shall consider and review (with appropriate corporate documentation
        thereof, and after taking into account all relevant factors including the
        Executive's performance and the merits of a three-year agreement) a one-year
        extension of the term under this Agreement, and the term shall continue to
        extend, unless either the Board of Directors does not approve such extension
        and
        provides written notice to the Executive of such event or the Executive gives
        written notice to the Companies of the Executive's election not to extend
        the
        term, in each case, with such written notice to be given not less than thirty
        (30) days prior to any such anniversary date. References herein to the term
        of
        this Agreement shall refer both to the initial term and successive
        terms.

    

    
      

    

    
      (b)           During
        the term of this Agreement, the Executive shall perform such executive services
        for the Companies as may be consistent with his titles and from time to time
        assigned to him by the Companies' Board of Directors; provided, however,
        that
        the Executive shall not be precluded from (i) vacations and other leave time
        in
        accordance with section 3(c) below; (ii) reasonable participation in community,
        civic, charitable, or similar organizations; (iii) reasonable participation
        in
        industry-related activities; or (iv) pursuing personal investments that do
        not
        interfere or conflict with the performance of Executive's duties to the
        Companies.

    

    
      

    

    
      3.           Compensation
        and Benefits.

    

    
      

    

    
      (a)           The
        Companies shall compensate and pay Executive for his services during the
        term of
        this Agreement at a minimum base annual salary of $150,100.00 ("Base Salary"),
        which may be increased from time to time in such amounts as may be determined
        by
        the Companies' Board of Directors and may not be decreased without the
        Executive's express written consent. In addition to his Base Salary, the
        Executive shall be entitled to receive during the term of this Agreement
        a bonus
        based on such terms and conditions as are set forth from time to time in
        the
        Companies' incentive bonus program (the "Bonus"). The Executive's Base Salary
        and Bonus are referred to herein as his "Compensation."

    

    
      

    

    
      (b)           During
        the term of the Agreement, Executive shall be entitled to participate in
        and
        receive the benefits of any pension or other retirement benefit plan, deferred
        compensation, profit sharing, stock option, management recognition, employee
        stock ownership, or other plans, benefits and privileges given to employees
        and
        executives of the Companies, to the extent commensurate with his then duties
        and
        responsibilities, as fixed by the Board of Directors of the Companies including,
        but not limited to, the following: (i) the Companies shall pay membership
        dues
        for the Executive for membership in such organizations, including country
        clubs
        and professional organizations, as are approved by the Companies from time
        to
        time; and (ii) the Companies shall, at their discretion, provide the use
        of an
        automobile (the terms and conditions for the Executive's use and possession
        of
        the automobile and the quality of the automobile provided for the Executive's
        use shall be consistent with, or not less favorable than, the past practices
        of
        the Companies) or an automobile expense reimbursement. The Companies shall
        not
        make any changes in such plans, benefits or privileges that would adversely
        affect Executive's rights or benefits thereunder, unless such change occurs
        pursuant to a program applicable to all executive officers of the Companies
        and
        does not result in a proportionately greater adverse change in the rights
        of or
        benefits to Executive as compared with any other

    

    
      
         

      

      
        4

        
          

        

      

      
         

        Exhibit
          10.4

      

    

    
      executive
        officer of the Companies. Nothing paid to Executive under any plan or
        arrangement presently in effect or made available in the future shall be
        deemed
        to be in lieu of the salary payable to Executive pursuant to Section 3(a)
        hereof.

    

    
      

    

    
      (c)           During
        the term of this Agreement, Executive shall be entitled to paid annual vacation
        in accordance with the policies as established from time to time by the Board
        of
        Directors of the Companies, which shall in no event be less than four weeks
        per
        annum. Executive shall not be entitled to receive any additional compensation
        from the Companies for failure to take a vacation, nor shall Executive be
        able
        to accumulate unused vacation time from one year to the next, except to the
        extent authorized by the Board of Directors of the Companies.

    

    
      

    

    
      4.           Expenses.  The
        Companies shall reimburse Executive or otherwise provide for or pay for all
        reasonable expenses incurred by Executive in furtherance or in connection
        with
        the business of the Companies, including, but not by way of limitation,
        traveling expenses and all reasonable entertainment expenses (whether incurred
        at the Executive's residence, while traveling or otherwise), subject to such
        reasonable documentation and other limitations as may be established by the
        Board of Directors of the Companies. If such expenses are paid in the first
        instance by Executive, the Companies shall reimburse the Executive
        therefor.

    

    
      

    

    
      5.           Termination.

    

    
      

    

    
      (a)           The
        Companies shall have the right, at any time upon prior Notice of Termination,
        to
        terminate the Executive's employment hereunder for any reason, including
        without
        limitation termination for Cause, Disability or Retirement.

    

    
      

    

    
      (b)           Executive
        shall have the right, upon prior Notice of Termination, to terminate his
        employment hereunder for any reason.

    

    
      

    

    
      (c)           In
        the event that (i) Executive's employment is terminated by the Companies
        for
        Cause, Disability or Retirement or in the event of the Executive's death,
        or
        (ii) Executive terminates his employment hereunder other than for Good Reason,
        Executive shall have no right pursuant to this Agreement to compensation
        or
        other benefits for any period after the applicable Date of
        Termination.

    

    
      

    

    
      (d)           In
        the event that Executive's employment is terminated by the Companies for
        other
        than Cause, Disability, Retirement or the Executive's death or such employment
        is terminated by the Executive (i) due to failure by the Companies to comply
        with any material provision of this Agreement, or (ii) for Good Reason, in
        either case which failure or Good Reason has not been cured within a period
        of
        thirty (30) days after a written notice of non-compliance has been given
        by
        Executive to the Companies, then the Companies shall, subject to the provisions
        of Section 6 hereof, if applicable;

    

    
      

    

    
      
        	
              	
                (1)

              	
                pay
                  to the Executive, in a lump sum payment on the first business day
                  of the
                  month following the Date of Termination, an amount equal to 2.00
                  times the
                  Annual Compensation but not more than twice the annual compensation
                  limitation in effect under Section 401(a)(17) for the year which
                  includes
                  the Date of Termination;
                  and

              

      

    

    
      
         

      

      
        5

        
          

        

      

      
         

        Exhibit
          10.4

      

    

    
      

    

    
      
        	
              	
                (2)

              	
                pay
                  to the Executive, in a lump sum payment on the first business day
                  of the
                  seventh month following the Date of Termination, an amount equal
                  to the
                  excess of 2.99 times the Annual Compensation over the amount of
                  the
                  payment made to the Executive under subparagraph (d)(i);
                  and

              

      

    

    
      

    

    
      
        	
              	
                (3)

              	
                maintain
                  and provide for a period ending at the earlier of (i) the expiration
                  of
                  the remaining term of employment pursuant hereto prior to the Notice
                  of
                  Termination, (ii) the end of the second full calendar year following
                  the
                  year which includes the date of termination, or (iii) the date
                  of the
                  Executive's full-time employment by another employer (provided
                  that the
                  Executive is entitled under the terms of such employment to benefits
                  substantially similar to those described in this subparagraph (3)),
                  at no
                  cost to the Executive, the Executive's continued participation
                  in all
                  group insurance, life insurance, health and accident, disability
                  and other
                  employee benefit plans, programs and arrangements in which the
                  Executive
                  was entitled to participate  immediately prior to the Date of
                  Termination (other than retirement plans or stock compensation
                  plans of
                  the Companies), provided that in the event that the Executive's
                  participation in any plan, program or arrangement as provided in
                  this
                  subparagraph (3) is barred, or during such period any such plan,
                  program
                  or arrangement is discontinued or the benefits thereunder are materially
                  reduced, the Companies shall arrange to provide the Executive with
                  benefits substantially similar to those that the Executive was
                  entitled to
                  receive under such plans, programs and arrangements immediately
                  prior to
                  the Date of Termination.  Notwithstanding the forgoing, the
                  Companies may in lieu of providing for continuation of the forgoing
                  benefits, pay to the Executive in a lump sum cash payment an amount
                  equal
                  to the Companies’ cost of providing such benefits to Executive during the
                  month immediately prior to the Executive’s termination of employment,
                  times the number of months that were remaining in the term of Executive’s
                  employment prior to the Notice of
                  Termination.

              

      

    

    
      

    

    
      6.           Limitation
        of Benefits under Certain Circumstances.  If the payments and benefits
        pursuant to Section 5 hereof, either alone or together with other payments
        and
        benefits that Executive has the right to receive from the Companies, would
        constitute a "parachute payment" under Section 280G of the Code, the payments
        and benefits pursuant to Section 5 hereof shall be reduced, in the manner
        determined by the Executive, by the amount, if any, that is the minimum
        necessary to result in no portion of the payments and benefits under Section
        5
        being non-deductible to either of the Companies pursuant to Section 280G
        of the
        Code and subject to the excise tax imposed under Section 4999 of the Code.
        The
        determination of any reduction in the payments and benefits to be made pursuant
        to Section 5 shall be based upon the opinion of independent tax counsel selected
        by the Companies' independent public accountants and paid by the
        Companies.  Such counsel shall be reasonably acceptable to the
        Companies and

    

    
      
         

      

      
        6

        
          

        

      

      
         

        Exhibit
          10.4

      

    

    
      Executive;
        shall promptly prepare the foregoing opinion, but in no event later than
        thirty
        (30) days from the Date of Termination; and may use such actuaries as such
        counsel deems necessary or advisable for the purpose. In the event that the
        Companies and/or the Executive do not agree with the opinion of such counsel,
        (i) the Companies shall pay to the Executive the maximum amount of payments
        and
        benefits pursuant to Section 5, as selected by the Executive, which such
        opinion
        indicates that there is a high probability do not result in any payments
        and
        benefits being non-deductible to the Companies and subject to the imposition
        of
        the excise tax imposed under Section 4999 of the Code (the “Permitted Amount”),
        and (ii) the Companies may request, and provided that the amount not paid
        to the
        Executive because it was above the Permitted Amount exceeds 5% of the total
        amount of payments and benefits owed to Executive by the Companies pursuant
        to
        the terms of this Agreement, Executive shall have the right to demand that
        the
        Companies request, a ruling from the IRS as to whether the disputed payments
        and
        benefits pursuant to Section 5 hereof have such consequences. Any such request
        for a ruling from the IRS shall be promptly prepared and filed by the Companies,
        but in no event later than thirty (30) days from the date of the opinion
        of
        counsel referred to above, and shall be subject to the Executive's approval
        prior to filing, which shall not be unreasonably withheld. The Companies
        and
        Executive agree to be bound by any ruling received from the IRS and to make
        appropriate payments to each other to reflect any such rulings, together
        with
        interest at the applicable federal rate provided for in Section 7872(f)(2)
        of
        the Code. Nothing contained herein shall result in a reduction of any payments
        or benefits to which the Executive may be entitled upon termination of
        employment under any circumstances other than as specified in this Section
        6, or
        a reduction in the payments and benefits specified in Section 5 below
        zero.

    

    
      

    

    
      7.           Mitigation;
        Exclusivity of Benefits.

    

    
      

    

    
      (a)           The
        Executive shall not be required to mitigate the amount of any benefits hereunder
        by seeking other employment or otherwise, nor shall the amount of any such
        benefits be reduced by any compensation earned by the Executive as a result
        of
        employment by another employer after the Date of Termination or
        otherwise.

    

    
      

    

    
      (b)           The
        specific arrangements referred to herein are not intended to exclude any
        other
        benefits that may be available to the Executive upon a termination of employment
        with the Companies pursuant to employee benefit plans of the Companies or
        otherwise.

    

    
      

    

    
      8.           Withholding.
        All payments required to be made by the Companies hereunder to the Executive
        shall be subject to the withholding of such amounts, if any, relating to
        tax and
        other payroll deductions as the Companies may reasonably determine should
        be
        withheld pursuant to any applicable law or regulation.

    

    
      

    

    
      9.           Covenant
        Not to Compete and Confidential Information

    

    

    (a)           Throughout
      the employment of Executive under this Agreement and for a period of one year
      after termination of employment for any reason, Executive agrees that he will
      not, except on behalf of the Companies or with the written consent of the
      Companies:

    

    
      	
               

            	
              (1)

            	
              engage
                in any business activity, directly or indirectly, on his
                own

            

    

    
      
         

      

      
        7

        
          

        

      

      
         

        Exhibit
          10.4

      

    

    behalf
      or
      as a partner, stockholder (except by ownership of less than 1% of the
      outstanding stock of a publicly held corporation), director, trustee, principal,
      agent, employee, consultant or otherwise of any person, firm or corporation,
      which is engaged in any activity in which the Companies or any parent,
      subsidiary or affiliate of the Companies is engaged at the time;

    

    
      	
               

            	
              (2)

            	
              allow
                the use of his name by or in connection with any business that is
                competitive with any activity in which the Companies or any parent,
                subsidiary or affiliate of the Companies is engaged,
                or

            

    

    

    
      	
               

            	
              (3)

            	
              offer
                employment to or employ, for himself or on behalf of any competitor
                of the
                Companies or any parent, subsidiary or affiliate, any person who
                at any
                time within the prior three years shall have been employed by the
                Companies or any parent, subsidiary or affiliate of the
                Companies.

            

    

    

    (b)           The
      parties acknowledge that this Section 9 is fair and reasonable under the
      circumstances.  It is the desire and intent of the parties that the
      provisions of this Section 9 shall be enforced to the fullest extent permitted
      by law.  Accordingly, if any particular portion of this Section 9
      shall be adjudicated to be invalid or unenforceable, this Section 9 shall be
      deemed amended to:

    

    
      	
               

            	
              (1)

            	
              reform
                the particular portion to provide for such maximum restrictions as
                will be
                valid and enforceable, or if that is not
                possible,

            

    

    

    
      	
               

            	
              (2)

            	
              delete
                the portion found invalid or unenforceable, such reformation or deletion
                to apply only with respect to the operation of this Section 9 in
                the
                particular jurisdiction in which such adjudication is
                made.

            

    

    

    (c)           During
      the term of Executive’s employment, the covenants contained in this Section 9
      shall apply without regard to geographic location.  Upon the
      termination of Executive’s employment, the covenants contained in this Section 9
      shall be limited to a twenty-five (25) mile radius of any office of the
      Companies.

    

    (d)           Notwithstanding
      any other provision of this Agreement to the contrary, in the event Executive
      violates the above restrictive covenants, all amounts otherwise owing to
      Executive by the Companies shall be forfeited by Executive and the Companies,
      in
      addition to any other remedy, shall be under no further obligation to
      Executive.

    

    (e)           Executive
      shall not at any time, in any manner, while employed by the Companies or
      thereafter, either directly or indirectly, except in the course of carrying
      out
      the Companies business or as previously authorized in writing on behalf of
      the
      Companies, disclose or communicate to any person, firm, or corporation, any
      information of any kind concerning any matters affecting or relating to the
      Companies’ business or any of its data, figures, projections, estimates,
      customer lists, tax records, personnel histories, and accounting procedures,
      without

    
      
         

      

      
        8

        
          

        

      

      
         

        Exhibit
          10.4

      

    

    regard
      to
      whether any or all of such information would otherwise be deemed confidential
      or
      material.

    

    
      10.           Assignability.
        The Companies may assign this Agreement and their rights hereunder in whole,
        but
        not in part, to any corporation, bank or other entity with or into which
        either
        of the Companies may hereafter merge or consolidate or to which either of
        the
        Companies may transfer all or substantially all of their respective assets,
        if
        in any such case said corporation, bank or other entity shall by operation
        of
        law or expressly in writing assume all obligations of the Companies hereunder
        as
        fully as if it had been originally made a party hereto, but may not otherwise
        assign this Agreement or its rights hereunder. The Executive may not assign
        or
        transfer this Agreement or any rights or obligations
        hereunder.

    

    
      

    

    
      11.           Notice.  For
        the purposes of this Agreement, notices and all other communications provided
        for in this Agreement shall be in writing and shall be deemed to have been
        duly
        given when delivered or mailed by certified or registered mail, return receipt
        requested, postage prepaid, addressed to the respective address set forth
        below:

    

    
      

    

    
      	
              To
                First Defiance:

            	
              First
                Federal Financial Corp.

            
	 	
              601
                Clinton Street

            
	 	
              Defiance,
                Ohio 43512

            
	 	 
	
              To
                First Federal:

            	
              First
                Federal Bank of the Midwest

            
	 	
              601
                Clinton Street

            
	 	
              Defiance,
                Ohio 43512

            
	 	 
	
              To
                the Executive:

            	
              Gregory
                R. Allen

            
	 	
              1801
                Firestone Dr.

            
	 	
              Findlay,
                OH 45840

            

    

    
      

    

    
      12.           Supersedes
        Prior Agreement; Amendment; Waiver.  This Agreement supersedes the
        Prior Agreement.  No provisions of this Agreement may be modified,
        waived or discharged unless such waiver, modification or discharge is agreed
        to
        in writing signed by the Executive and such officer or officers as may be
        specifically designated by the Board of Directors of the Companies to sign
        on
        their behalf. No waiver by any party hereto at any time of any breach by
        any
        other party hereto of, or compliance with, any condition or provision of
        this
        Agreement to be performed by such other party shall be deemed a waiver of
        similar or dissimilar provisions or conditions at the same or at any prior
        or
        subsequent time.

    

    
      

    

    
      13.           Governing
        Law.  The validity, interpretation, construction and performance of
        this Agreement shall be governed by the laws of the United States where
        applicable and otherwise by the substantive laws of the State of
        Ohio.

    

    
      

    

    
      14.           Nature
        of Obligations.  Nothing contained herein shall create or require the
        Companies to create a trust of any kind to fund any benefits that may be
        payable
        hereunder, and to the extent that the Executive acquires a right to receive
        benefits from the Companies hereunder, such right shall be no greater than
        the
        right of any unsecured general creditor of the Companies.

    

    
      
         

      

      
        9

        
          

        

      

      
         

        Exhibit
          10.4

      

    

    
      

    

    
      15.           Headings.  The
        section headings contained in this Agreement are for reference purposes only
        and
        shall not affect in any way the meaning or interpretation of this
        Agreement.

    

    
      

    

    
      16.           Validity.  The
        invalidity or unenforceability of any provision of this Agreement shall not
        affect the validity or enforceability of any other provisions of this Agreement,
        which shall remain in full force and effect.

    

    
      

    

    
      17.           Counterparts.  This
        Agreement may be executed in one or more counterparts, each of which shall
        be
        deemed to be an original but all of which together will constitute one and
        the
        same instrument.

    

    
      

    

    
      18.           Regulatory
        Actions.  The following provisions shall be applicable to the parties
        to the extent that they are required to be included in the employment agreements
        between a savings association and its employees pursuant to Section 563.39
        (b)
        of the Regulations Applicable to All Savings Associations, 12 C.F.R. 563.39(b),
        or any successor thereto, and shall be controlling in the event of a conflict
        with any other provision of this Agreement, including without limitation
        Section
        5 hereof.

    

    
      

    

    
      (a)           If
        Executive is suspended from office and/or temporarily prohibited from
        participating in the conduct of the Companies' affairs pursuant to notice
        served
        under Section 8(e)(3) or Section 8(g)(1) of the Federal Deposit Insurance
        Act
        ("FDIA")(12 U.S.C. 1818 (e)(3) and 1818(g)(1)), the Companies' obligations
        under
        this Agreement shall be suspended as of the date of service,
        unless  stayed by appropriate proceedings.  If the charges
        in the notice are dismissed, the Companies may, in their discretion: (i)
        pay
        Executive all or part of the compensation withheld while its obligations
        under
        this Agreement were suspended, and (ii) reinstate (in whole or in part) any
        of
        its obligations which were suspended.

    

    
      

    

    
      (b)           If
        Executive is removed from office and/or permanently prohibited from
        participating in the conduct of the Companies' affairs by an order issued
        under
        Section 8(e)(4) or Section  8(g)(1) of the FDIA (12 U.S.C. 1818(e)(4)
        and (g)(1)), all obligations of the Companies under this Agreement shall
        terminate as of the effective date of the order, but vested rights of Executive
        and the Companies as of the date of termination shall not be
        affected.

    

    
      

    

    
      (c)           If
        the Companies are in default, as defined in Section 3(x)(1) of the FDIA (12
        U.S.C. 1813(x)(l)), all obligations under this Agreement shall terminate
        as of
        the date of default, but vested rights of Executive and the Companies as
        of the
        date of termination shall not be affected.

    

    
      

    

    
      (d)           All
        obligations under this Agreement shall be terminated pursuant to 12 C.F.R.
        563.39(b)(5) (except to the extent that it is determined that continuation
        of
        the Agreement for the continued operation of the Companies is
        necessary):  (i) by the Director of the Office of Thrift Supervision
        ("OTS"),

    

    
      
         

      

      
        10

        
          

        

      

      
         

        Exhibit
          10.4

      

    

    
      or
        his/her designee, at the time the Federal Deposit Insurance Corporation ("FDIC")
        or Resolution Trust Corporation enters into an agreement to provide assistance
        to or on behalf of First Federal under the authority contained in Section
        13 (c)
        of the FDIA (12 U.S.C. 1823(c)); or (ii) by the Director of the OTS, or his/her
        designee, at the time the Director or his/her designee approves a supervisory
        merger to resolve problems related to operation of the Companies or when
        the
        Companies are determined by the Director of the OTS to be in an unsafe or
        unsound condition, but vested rights of Executive and the Companies as of
        the
        date of termination shall not be affected.

    

    
      

    

    
      19.           Regulatory
        Prohibition.  Notwithstanding any other provision of this Agreement to
        the contrary, any payment made to the Executive pursuant to this Agreement,
        or
        otherwise, are subject to and conditioned upon their compliance with 12 U.S.C.
        Section 1828(K) and any regulations promulgated thereunder.

    

    
      

    

    
      20.           Additional
        Restriction on Distributions to Key Employees.

    

    
      

    

    
      (a)           Notwithstanding
        the provisions of this Agreement providing for payment of benefits upon
        termination of employment, if at the time a benefit would otherwise be payable,
        Executive is a “specified employee” [as defined below], and the payment provided
        for would be deferred compensation with the meaning of Code section 409A,
        the
        distribution of the Executive’s benefit may not be made until six months after
        the date of the Executive’s separation from service with the Company [as that
        term may be defined in Section 409A(a)(2)(A)(i) of the Code and relevant
        regulations], or, if earlier the date of death of the Executive. This
        requirement shall remain in effect only for periods in which the stock of
        the
        Company is publicly traded on an established securities
        market.

    

    

    (b)           For
      purposes of this Section 20 a “specified employee” shall mean any Executive of
      the Company who is a “key employee” of the Company within the meaning of Code
      section 416(i) as of the last day of the calendar year preceding the date
      of the termination of employment. This shall include any Executive who is
      (i) a 5-percent owner of the Company’s common stock, or (ii) an
      officer of the Company with annual compensation from the Company of $130,000.00
      or more, or (iii) a 1-percent owner of Company’s common stock with annual
      compensation from the Company of $150,000.00 or more (or such higher annual
      limit as may be in effect for years subsequent to 2005 pursuant to indexing
      section 416(i) of the Code).

    

    (c)           The
      provisions of this Section 20 have been adopted only in order to comply with
      the
      requirements added by Code section 409A. These provisions shall be
      interpreted and administered in a manner consistent with the requirements of
      Code section 409A, together with any regulations or other guidance which
      may be published by the Treasury Department or Internal Revenue Service
      interpreting such Code section 409A.

    
      

    

    
      
         

      

      
        11

        
          

        

      

      
         

        Exhibit
          10.4

      

    

    
      IN
        WITNESS WHEREOF, this Agreement has been executed as of the date first above
        written.

    

    
      

    

    
      	
              Attest:

            	
               

            	
              FIRST
                DEFIANCE FINANCIAL CORP.

            
	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            
	
              /s/
                John W. Boesling

            	
               

            	
              By:

            	
              /s/
                William J. Small

            
	
               John
                W. Boesling, Secretary

            	
               

            	
               

            	
              Name:
                William J. Small

            
	
               

            	
               

            	
               

            	
              Title:  Chairman,
                President and C.E.O.

            
	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            
	
              Attest:

            	
               

            	
              FIRST
                FEDERAL BANK

            
	
               

            	
               

            	
              OF
                THE MIDWEST

            
	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            
	
              /s/
                John W. Boesling

            	
               

            	
              By:

            	
              /s/
                William J. Small

            
	
               John
                W. Boesling, Secretary

            	
               

            	
               

            	
              Name:
                William J. Small

            
	
               

            	
               

            	
               

            	
              Title:  Chairman
                and C.E.O.

            
	
               

            	
               

            	
               

            	
               

            
	
              Witness:

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            
	
              /s/
                Danielle Norden

            	
               

            	
               

            	
              /s/
                Gregory R. Allen

            
	
               

            	
               

            	
               

            	
              Gregory
                R. Allen

            

    

    

    12ex10-3.htm

    
      
        

      

    

    Exhibit
      10.3

    
       

    

    NEWALLIANCE
      BANCSHARES, INC. EMPLOYEE STOCK OWNERSHIP PLAN

    AMENDED
      AND RESTATED SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

    

    

    PREAMBLE

    

    This
      Employee Stock Ownership Plan Amended and Restated Supplemental Executive
      Retirement Plan (“Plan”) of NewAlliance Bancshares, Inc. (the “Company”) and
      NewAlliance Bank (the “Bank”) is adopted effective as of September 25,
      2007.  The Plan was initially adopted effective as of May 1,
      2004.  The Plan as amended and restated shall in all respects be
      subject to the provisions set forth herein.

    

    This
      Plan is being amended and restated
      to comply with the requirements of Section 409A of the Code and the regulations
      issued thereunder.  No benefits payable under this Plan shall be
      deemed to be grandfathered for purposes of Section 409A of the
      Code.

    

    The
      Plan shall at all times be
      characterized as a “top hat” plan of deferred compensation maintained for a
      select group of management or highly compensated employees, as described under
      Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA and any regulations relating
      thereto.  The Plan has been and shall continue to be operated in
      compliance with Section 409A of the Code.  The Plan is an unfunded
      plan for tax purposes.  The provisions of the Plan shall be construed
      to effectuate such intentions.

    

    PURPOSE

    

    The
      Plan
      is established and maintained by the Company and the Bank for the purpose of
      permitting one or more of its officers listed in Appendix A attached hereto
      who
      participate in the ESOP to receive allocations representing shares of common
      stock of the Company pursuant to Section 3.1 of this Plan in excess of the
      number of shares of Company Common Stock which are allocable to their Company
      Stock Account and Other Investments Account pursuant to Section 4.1(b) of the
      ESOP under the limitations imposed by Sections 401(a)(17) and 415 of the
      Code.

    

    Accordingly,
      the Company and the Bank hereby adopt this amended and restated Plan pursuant
      to
      the terms and provisions set forth below:

    

    

    ARTICLE
      I

    

    DEFINITIONS

    

    In
      addition to those terms defined above, the following terms shall have the
      meanings hereinafter set forth whenever used herein:

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    1.1.
“Accumulation
      Account” means the
      account maintained on the books of the Bank for each Participant with respect
      to
      the Plan.  Each Participant’s Accumulation Amount shall consist of the
      following sub-Accounts: (i) a Stock Units Account, a sub-account that is
      credited with Stock Units; and (ii) such other sub-accounts as may be necessary
      to reflect allocations under the Plan and such further sub-Accounts as the
      Committee may deem necessary.  The Stock Units Account (i) may not be
      diversified; (ii) must remain at all times credited with units that represent
      Company Common Stock; and (iii) must be distributed solely in the form of
      Company Common Stock.  A Participant’s Accumulation Account shall be
      utilized solely as a device for the measurement and determination of any
      benefits payable to the Participant pursuant to this Plan.  A
      Participant shall have no interest in his Accumulation Account, nor shall it
      constitute or be treated as a trust fund of any kind.

    

    1.2.           “Board”
      means the Board of Directors of the Company and the Bank.

    

    1.3.           “Change
      in Control” means a change in the ownership of the Company or the Bank, a change
      in the effective control of the Company or the Bank or a change in the ownership
      of a substantial portion of the assets of the Company or the Bank, in each
      case
      as provided under Section 409A of the Code and the regulations
      thereunder.

    

    1.4.           “Code”
      means the Internal Revenue Code of 1986, as amended from time to time, and
      any
      regulations relating thereto.

    

    1.5           “Committee”
      means the Compensation Committee of the Board.

    

    1.6.           “Company
      Common Stock” means shares of common stock of the Company.

    

    1.7.           “Disability” means
      in the case of any Participant that the Participant: (i) is unable to engage
      in
      any substantial gainful activity by reason of any medically determinable
      physical or mental impairment which can be expected to result in death or can
      be
      expected to last for a continuous period of not less than 12 months, or (ii)
      is,
      by reason of any medically determinable physical or mental impairment which
      can
      be expected to result in death or can be expected to last for a continuous
      period of not less than 12 months, receiving income replacement benefits for
      a
      period of not less than three months under an accident and health plan covering
      employees of the Company or the Bank.

    

    1.8.           “ERISA”
      means the Employee Retirement Income Security Act of 1974, as amended, and
      any
      regulations relating thereto.

    

    1.9.           “ESOP
      Allocation” means the number of shares allocable to the individual account of a
      participant in the ESOP pursuant to Section 4.1(b) of the ESOP.

    

    1.10.          “Participant”
      means a salaried employee of the Company and/or the Bank who is a participant
      in
      the ESOP, who is a member of a select group of management or highly compensated
      employees within the meaning of Section 201(2) of ERISA and who is selected
      by
      the Board to participate in the Plan in accordance with Article II
      hereof.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    1.11           “Plan
      Year” means the 12-consecutive-month period ending December 31 of each year,
      except that the initial Plan Year shall commence on April 1, 2004 and end on
      December 31, 2004.

    

    1.12.            “Separation
      from Service” means a termination of a Participant’s services (whether as an
      employee or as an independent contractor) to the Company and the
      Bank.  Whether a Separation from Service has occurred shall be
      determined in
      accordance with the requirements of Section 409A of the Code based on
      whether the facts and circumstances indicate that the Company, the Bank and
      the
      Participant reasonably anticipated that no further services would be performed
      after a certain date or that the level of bona fide services the Participant
      would perform after such date (whether as an employee or as an independent
      contractor) would permanently decrease to no more than twenty percent (20%)
      of
      the average level of bona fide services performed (whether as an employee or
      an
      independent contractor) over the immediately preceding thirty-six (36) month
      period.

    

    1.13.             “Stock
      Unit” means a bookkeeping unit used for the purpose of crediting amounts to the
      account of a Participant, with each such Stock Unit being equivalent to one
      share of Company Common Stock.

    

    1.14.            “Supplemental
      ESOP Allocation” shall mean the number of Stock Units allocated to a
      Participant’s account pursuant to Section 3.1 of the Plan.

    

    

    ARTICLE
      II

    

    ELIGIBILITY

    

    A
      salaried employee of the Company and/or the Bank who is eligible to receive
      the
      benefit of an ESOP Allocation, the total amount of which is reduced by reason
      of
      the limitation on compensation or annual additions for the purpose of
      calculating allocations pursuant to Sections 401(a)(17) and 415 of the Code,
      shall be eligible to be selected by the Board of Directors of the Company and
      the Bank to participate in the Plan.

    

    

    ARTICLE
      III

    

    SUPPLEMENTAL
      CONTRIBUTIONS

    

    3.1.           Supplemental
      ESOP Allocation.

    

    A
      Participant in the Plan shall receive a Supplemental ESOP Allocation of Stock
      Units each year effective as of the last day of the Plan Year.  The
      number of Stock Units allocable to a Participant with respect to a given Plan
      Year shall be calculated as set forth below:

    

    (a)           The
      ESOP Allocation which would have been allocated to the Participant for the
      Plan
      Year, as determined by Section 4.1(b) of the ESOP and the definition of
“Compensation” in Section 1.10 of the ESOP without giving effect to the
      limitations imposed by Sections 401(a)(17) and 415 of the Code on the maximum
      amount of compensation which may be taken into consideration for the purposes
      of
      the ESOP; less

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (b)           The
      ESOP Allocation actually allocated to the account of the Participant in the
      ESOP
      for the Plan Year.

    

    Supplemental
      ESOP Allocations made for the benefit of a Participant for any Plan Year shall
      be credited to a Stock Units account maintained under the Plan in the name
      of
      each Participant.

    

    

    ARTICLE
      IV

    

    ACCUMULATION
      ACCOUNT

    

    4.1.           Determination
      of Accumulation Account.  Amounts credited under this
      Plan will be credited to a Stock Units Account for each
      Participant.  The Participant's ultimate deferred compensation
      payments shall be based on the aggregate value of the Stock Units accrued in
      the
      Stock Units Account (and any other sub-accounts) determined as hereinafter
      set
      forth:

    

    (a)           All
      amounts credited to the Stock Units Account shall be applied to the crediting
      of
      Stock Units.  The number of Stock Units credited to a Participant's
      Stock Units Account shall equal the dollar amount credited to such account
      (as
      determined in Section 3.1 of the Plan) for a given Plan Year divided by the
      closing sales price of the Company Common Stock as of December 31 of that
      Plan Year (or if the Company Common Stock is not traded on such date, as of
      the
      nearest immediately preceding trading date).  The number of Stock
      Units shall be rounded to the nearest one-thousandth.  Each Stock Unit
      shall be deemed to pay cash dividends as if it were one share of Company Stock,
      and any such deemed dividends will result in the crediting of additional Stock
      Units to the Stock Units Account on a date selected by the Bank, with the number
      of Stock Units so credited to be calculated by dividing the amount of the deemed
      dividend by the closing sales price of the Company Common Stock on the dividend
      payment date set by the Company.  After the crediting of Stock Units
      to the Stock Units Account, subsequent fluctuations in the fair market value
      of
      the Company Stock shall not result in any change in the number of such Stock
      Units then credited to the Stock Units Account.

    

    (b)           In
      the event of any change in the outstanding shares of the Company by reason
      of
      any stock dividend or split, recapitalization, merger, consolidation, spin-off,
      reorganization, combination or exchange of shares or other similar corporate
      change, then the Stock Units Account of each Participant shall be adjusted
      by
      the Committee in a reasonable manner to compensate for the change, and any
      such
      adjustment by the Committee shall be conclusive and binding for all purposes
      of
      the Plan.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    ARTICLE
      V

    

    INVESTMENT
      OF SUPPLEMENTAL ESOP ALLOCATIONS

    

    Amounts
      credited hereunder to the account of a Participant shall be converted into
      Stock
      Units and shall be treated as if they were actually invested in the Company
      Common Stock.  If  any Company Common Stock is held in a
      rabbi trust to fund the Company and the Bank's obligations under the Plan,
      the
      Company Common Stock (i) may not be diversified; (ii) must remain at all times
      invested in the form of Company Common Stock or common stock units of the
      Company, as applicable; and (iii) must be distributed solely in the form of
      whole shares of Common Stock.  A change by a Participant in the
      investment election applicable to amounts in his or her ESOP account shall
      not
      affect the number of Stock Units held in the Plan.

    

    

    ARTICLE
      VI

    

    VESTING;
      DISTRIBUTIONS

    

    6.1.           Vesting.  The
      vested portion of a Participant’s account shall be a percentage of the total
      amount credited to the account determined on the basis of the Participant’s
      number of “Years of Service” (as defined in Section 1.56 (or any successor
      thereto) of the ESOP) according to the following schedule:

    

    
      	
              Years
                of Service

            	
              Vested
                Percentage

            
	
              Less
                than 3 years

            	
                  0%

            
	
              3
                but less than 4 years

            	
                20%

            
	
              4
                but less than 5 years

            	
                40%

            
	
              5
                but less than 6 years

            	
                60%

            
	
              6
                but less than 7 years

            	
                80%

            
	
              7
                or more years

            	
              100%

            

    

    

    In
      determining Years of Service for purposes of vesting under the Plan, Years
      of
      Service with the Bank (including its predecessor, New Haven Savings Bank) prior
      to the effective date of the ESOP shall be included.

    

    Notwithstanding
      the above vesting schedule, a Participant shall be 100% vested in his account
      upon (1) attainment of “Early Retirement Age” or “Normal Retirement Age” (as
      defined in Sections 1.13 and 1.35, respectively, (or any successors thereto)
      of
      the ESOP); (2) Disability; (3) termination or partial termination of this
      Plan; or (4) a Change in Control.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    6.2           Distribution.

    

    (a)           General.  The
      vested portion of a Participant’s Accumulation Account may not be distributed
      prior to (a) the Participant’s Disability or death, (b) the first day of the
      month following the lapse of six months following the Participant’s Separation
      from Service for reasons other than Disability or death, (c) the time specified
      in the Participant’s payment election form, or (d) a Change in
      Control.  The vested portion of amounts credited to a Participant’s
      Accumulation Account shall be distributed to a Participant at the time and
      in
      the manner indicated on the Participant’s payment election form (a copy of which
      is attached as Appendix B), except that any distribution must be solely in
      the
      form of whole shares of Company Common Stock.  Cash will not be
      distributed in lieu of fractional shares.  The form of benefit payment
      may be in a single lump sum payment or annual installment payments not in excess
      of ten years, as specified on a Participant’s payment election
      form.  If the benefits are to be paid in annual installments, the
      first annual installment shall be paid on or as soon as practicable following
      the payment event selected by the Participant (subject to the six-month delay
      required above if the payment event is a Separation from Service), and all
      subsequent annual payments shall be paid on the annual anniversary date of
      the
      first payment.  Any new payment elections made by a Participant on or
      after January 1, 2005 shall be made in accordance with this Article
      VI.  If a Participant elects a form of payment upon more than one
      payment event, then the first payment event that occurs shall govern how the
      payment is made.

    

    (b)           Amount
      of Each Annual Installment.  The dollar
      amount of each annual installment paid to a Participant or his or her
      beneficiaries shall be determined by multiplying the value of the Participant’s
      Accumulation Account as of the close of business on the day preceding such
      payment by a fraction.  The numerator of the fraction shall in all
      cases be one, and the denominator of the fraction shall be the number of annual
      installments remaining to be paid to the Participant or his or her
      beneficiaries, including the annual installment for which the calculation is
      being made. For example, if a Participant elected to receive 10 annual
      installments, the amount of the first annual installment shall be 1/10th of the
      Participant’s Accumulation Account, the second annual installment shall be
      1/9th of the
      then remaining Accumulation Account, and so on.

    

    (c)           Prior
      Elections.  Any payment elections made
      by a Participant before January 1, 2005 shall continue in effect until such
      time
      as the Participant makes a subsequent payment election pursuant to Section
      6.2(d) or 6.2(e) below and such payment election becomes effective as set forth
      below.  If no payment election was previously made, then the current
      payment election shall be deemed to be a single lump sum payment as of the
      first
      day of the month following the lapse of six months after a Separation of
      Service.

    

    (d)           Transitional
      Elections Prior to 2008.  On or before December 31, 2007,
      if a Participant wishes to change his payment election as to either the time
      or
      form of payment or both, the Participant may do so by completing a payment
      election form approved by the Committee, provided that any such election (i)
      must be made prior to the Participant’s Separation from Service, (ii) shall
      not take effect before the date that is 12 months after the date the election
      is
      made and accepted by the Committee, (iii) made in 2006 cannot apply to amounts
      that would otherwise be payable in 2006 and may not cause an amount to be paid
      in 2006 that would otherwise be paid in a later year, and (iv) made in 2007
      cannot apply to amounts that would otherwise be payable in 2007 and may not
      cause an amount to be paid in 2007 that would otherwise be paid in a later
      year.

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (e)           Changes
      in Payment Elections after 2007.  On or
      after January 1, 2008, if a Participant wishes to change his or her payment
      election as to either the time or form of payment or both, the Participant
      may
      do so by completing a payment election form approved by the Committee, provided
      that any such election (i) must be made prior to the Participant’s Separation
      from Service, (ii) must be made at least 12 months before the date on which
      any
      benefit payments as of a fixed date or pursuant to a fixed schedule are
      scheduled to commence, (iii) shall not take effect until at least 12 months
      after the date the election is made and accepted by the Committee, and (iv)
      for
      payments to be made other than upon death or Disability, must provide an
      additional deferral period of at least five years from the date such payment
      would otherwise have been made (or in the case of any installment payments
      treated as a single payment, five years from the date the first amount was
      scheduled to be paid).  For purposes of this Plan and clause (iv)
      above, all installment payments under this Plan shall be treated as a single
      payment.

    

    6.3           Withholding;
      Payroll Taxes.  The Bank shall withhold
      from payments made hereunder any taxes required to be withheld from a
      Participant’s wages under applicable federal, state or local tax
      laws.

    

    6.4           Payment
      to Guardian.  If a Plan benefit is
      payable to a minor or a person declared to be incompetent or to a person
      incapable of handling the disposition of his property, the Committee may direct
      payment of such Plan benefit to the guardian, legal representative or person
      having the care and custody of such minor or other person.  The
      Committee may require proof of incompetence, minority, incapacity or
      guardianship, as it may deem appropriate prior to distribution of the Plan
      benefit.  Such distribution shall completely discharge the Committee,
      the Company and the Bank from all liability with respect to such
      benefit.

    

    6.5.           Survivor
      Benefit.  If a Participant should die before distribution
      of the vested portion of his or her account pursuant to the Plan has been made
      to him or her, any remaining vested amounts shall be distributed to his or
      her
      beneficiary in the method designated by the Participant in writing delivered
      to
      the Bank prior to the Participant’s death.  If a Participant has not
      designated a beneficiary, or if no designated beneficiary is living on the
      date
      of distribution, such vested amounts shall be distributed to those persons
      entitled to receive distributions of the Participant’s account under the
      ESOP.  If a Participant has not designated a method of distribution,
      then the vested portion of the Participant’s account shall be paid in a lump sum
      as soon as practicable following the date of his death.  The payment
      to a beneficiary or a deemed beneficiary shall completely discharge the Company
      and the Bank’s obligations under this Plan.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    ARTICLE
      VII

    

    7.1           Scope
      of Claims Procedures.  This Article is based on final
      regulations issued by the Department of Labor and published in the Federal
      Register on November 21, 2000 and codified at 29 C.F.R. Section
      2560.503-1.  If any provision of this Article conflicts with the
      requirements of those regulations, the requirements of those regulations will
      prevail.

    

    7.2           Initial
      Claim.  The Participant or any beneficiary who believes
      he or she is entitled to any benefit under the Plan (a “Claimant”) may file a
      claim with the Company within one hundred eighty (180) days of the date on
      which
      the event that caused the claim to arise occurred.  The Company shall
      review the claim itself or appoint an individual or an entity to review the
      claim.

    

    
      	
               

            	
              (a)

            	
              Initial
                Decision.  The Claimant shall be notified within
                ninety (90) days after the claim is filed whether the claim is allowed
                or
                denied, unless the Claimant receives written notice from the Company
                or
                appointee of the Company prior to the end of the ninety (90) day
                period
                stating that special circumstances require an extension of the time
                for
                decision, with such extension not to extend beyond the day which
                is one
                hundred eighty (180) days after the day the claim is
                filed.

            

    

    

    
      	
               

            	
              (b)

            	
              Manner
                and Content of Denial of Initial Claims.  If the
                Company denies a claim, it must provide to the Claimant, in writing
                or by
                electronic communication:

            

    

    

    
      	
               

            	
              (i)

            	
              The
                specific reasons for the denial;

            

    

    

    
      	
               

            	
              (ii)

            	
              A
                reference to the provision of the Plan upon which the denial is
                based;

            

    

    

    
      	
               

            	
              (iii)

            	
              A
                description of any additional information or material that the Claimant
                must provide in order to perfect the
                claim;

            

    

    

    
      	
               

            	
              (iv)

            	
              An
                explanation of why such additional material or information is
                necessary;

            

    

    

    
      	
               

            	
              (v)

            	
              Notice
                that the Claimant has a right to request a review of the claim denial
                and
                information on the steps to be taken if the Claimant wishes to request
                a
                review of the claim denial; and

            

    

    

    
      	
               

            	
              (vi)

            	
              A
                statement of the Claimant’s right to bring a civil action under Section
                502(a) of ERISA, following a denial on review of the initial
                denial.

            

    

    

    7.3           Review
      Procedures.

    

    
      	
               

            	
              (a)

            	
              Request
                For Review.  A request for review of a denied claim
                must be made in writing to the Company within sixty (60) days after
                receiving notice of denial.  The decision upon review will be
                made within sixty (60) days after the Company’s receipt of a request for
                review, unless special circumstances require an extension of time
                for
                processing, in which case a decision will be rendered not later than
                one
                hundred twenty (120) days after receipt of a request for
                review.  A notice of such an extension must be provided to the
                Claimant within the initial sixty (60) day period and must explain
                the
                special circumstances and provide an expected date of
                decision.

            

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    The
      reviewer shall afford the Claimant an opportunity to review and receive, without
      charge, all relevant documents, information and records and to submit issues
      and
      comments in writing to the Company.  The reviewer shall take into
      account all comments, documents, records and other information submitted by
      the
      Claimant relating to the claim regardless of whether the information was
      submitted or considered in the initial benefit determination.

    

    
      	
               

            	
              (b)

            	
              Manner
                and Content of Notice of Decision on Review.  Upon
                completion of its review of an adverse claim determination, the Company
                will give the Claimant, in writing or by electronic notification,
                a notice
                containing:

            

    

    

    
      	
               

            	
              (i)

            	
              its
                decision;

            

    

    

    
      	
               

            	
              (ii)

            	
              the
                specific reasons for the decision;

            

    

    

    
      	
               

            	
              (iii)

            	
              the
                relevant provisions of this Plan on which its decision is
                based;

            

    

    

    
      	
               

            	
              (iv)

            	
              a
                statement that the Claimant is entitled to receive, upon request
                and
                without charge, reasonable access to, and copies of, all documents,
                records and other information in the Company’s files which is relevant (as
                defined in applicable ERISA regulations) to the Claimant’s claim for
                benefits;

            

    

    

    
      	
               

            	
              (v)

            	
              a
                statement describing the Claimant’s right to bring an action for judicial
                review under Section 502(a) of ERISA;
                and

            

    

    

    
      	
               

            	
              (vi)

            	
              if
                an internal rule, guideline, protocol or other similar criterion
                was
                relied upon in making the adverse determination on review, a statement
                that a copy of the rule, guideline, protocol or other similar criterion
                will be provided without charge to the Claimant upon
                request.

            

    

    

    7.4           Calculation
      of Time Periods.  For purposes of the time periods
      specified in this Article, the period of time during which a benefit
      determination is required to be made begins at the time a claim is filed in
      accordance with the procedures of this Plan without regard to whether all the
      information necessary to make a decision accompanies the claim.  If a
      period of time is extended due to a Claimant’s failure to submit all information
      necessary, the period for making the determination shall be tolled from the
      date
      the notification is sent to the Claimant until the date the Claimant
      responds.

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    7.5           Legal
      Action.  If the Company fails to follow the claims
      procedures required by this Article, a Claimant shall be deemed to have
      exhausted the administrative remedies available under the Plan and shall be
      entitled to pursue any available remedy under Section 502(a) of ERISA on the
      basis that the Plan has failed to provide a reasonable claims procedure that
      would yield a decision on the merits of the claim.  A Claimant’s
      compliance with the foregoing provisions of this Article is a mandatory
      requisite to a Claimant’s right to commence any legal action with respect to any
      claims for benefits under the Plan.

    

    7.6           Review
      by the Company.  Notwithstanding anything in this
      Agreement to the contrary, the Company may determine, in its sole and absolute
      discretion, to review any claim for benefits submitted by a Claimant under
      this
      Agreement or to delegate its review to a third party, committee or
      individual.

    

    

    ARTICLE
      VIII

    

    ADMINISTRATION
      OF THE PLAN

    

    8.1.           Administration
      by the Company and the Bank.  The Company and
      the Bank shall be responsible for the general operation and administration
      of
      the Plan and for carrying out the provisions thereof.

    

    8.2.           General
      Powers of Administration.  All provisions set
      forth in the ESOP with respect to the administrative powers and duties of the
      Company and the Bank, expenses of administration, and procedures for filing
      claims shall also be applicable with respect to the Plan.

    

    

    ARTICLE
      IX

    

    AMENDMENT
      OR TERMINATION

    

    9.1.           Amendment
      or Termination.  The Company and the Bank intend the Plan
      to be permanent but reserve the right to amend or terminate the Plan when,
      in
      the sole opinion of the Company and the Bank, such amendment or termination
      is
      advisable.  Any such amendment or termination shall be made pursuant
      to a resolution of the Board.  In addition, in the event that the Bank
      determines, after a review of Section 409A of the Code and all applicable
      Internal Revenue Service guidance, that the Plan or payment election form needs
      to be further amended to comply with Section 409A of the Code, the Bank may
      amend the Plan or the payment election form to make any changes required for
      it
      to comply with Section 409A of the Code.

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    9.2.           Effect
      of Amendment or Termination.

    

    (a)           General.          No
      amendment or termination of the Plan shall directly or indirectly reduce the
      vested portion of any account held hereunder as of the effective date of such
      amendment or termination.  A termination of the Plan will not be a
      distributable event, except in the three circumstances set forth in Section
      9.2(b) below.  No additional credits with respect to Supplemental ESOP
      Allocations shall be made to the account of a Participant and no additional
      Years of Service (within the meaning of Section 6.1) shall be credited after
      termination of the Plan, but the Company or the Bank shall continue to credit
      gains and losses pursuant to Article IV until the vested balance of the
      Participant’s account has been fully distributed to the Participant or his
      beneficiary.

    

    (b)           Termination.  Under
      no circumstances may the Plan permit the acceleration of the time or form of
      any
      payment under the Plan prior to the payment events specified herein, except
      as
      provided in this Section 9.2(b).  The Company or the Bank may, in its
      discretion, elect to terminate the Plan in any of the following three
      circumstances and accelerate the payment of the entire unpaid balance of the
      Participant’s vested benefits as of the date of such payment in accordance with
      Section 409A of the Code:

    

    
      	
               

            	
              (i)

            	
              the
                Plan is irrevocably terminated within the 30 days preceding a Change
                in
                Control and (1) all arrangements sponsored by the Company and the
                Bank
                that would be aggregated with the Plan under Treasury Regulation
                §1.409A-1(c)(2) are terminated, and (2) the Participant and all
                participants under the other aggregated arrangements receive all
                of their
                benefits under the terminated arrangements within 12 months of the
                date
                the Company and the Bank irrevocably take all necessary action to
                terminate the Plan and the other aggregated
                arrangements;

            

    

    

    
      	
               

            	
              (ii)

            	
              the
                Plan is irrevocably terminated at a time that is not proximate to
                a
                downturn in the financial health of the Company or the Bank and (1)
                all
                arrangements sponsored by the Company and the Bank that would be
                aggregated with the Plan under Treasury Regulation 1.409A-1(c) if
                the
                Participant participated in such arrangements are terminated, (2)
                no
                payments are made within 12 months of the date the Company and the
                Bank
                take all necessary action to irrevocably terminate the arrangements,
                other
                than payments that would be payable under the terms of the arrangements
                if
                the termination had not occurred; (3) all payments are made within
                24
                months of the date the Company and the Bank take all necessary action
                to
                irrevocably terminate the arrangements; and (4) neither the Company
                nor
                the Bank adopts a new arrangement that would be aggregated with the
                Plan
                under Treasury Regulation 1.409A-1(c) if the Participant participated
                in
                both arrangements, at any time within three years following the date
                the
                Company and the Bank take all necessary action to irrevocably terminate
                the Plan; or

            

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              (iii)

            	
              the
                Plan is terminated within 12 months of a corporate dissolution taxed
                under
                Section 331 of the Code, or with the approval of a bankruptcy court
                pursuant to 11 U.S.C. §503(b)(1)(A), provided that the amounts deferred by
                the Participant under the Plan are included in the Participant’s gross
                income in the later of (1) the calendar year in which the termination
                of
                the Plan occurs, or (2) the first calendar year in which the payment
                is
                administratively practicable.

            

    

    

    

    ARTICLE
      X

    

    GENERAL
      PROVISIONS

    

    10.1.                      Participant’s
      Rights Unsecured. To fund its obligations
      under the Plan, the Bank may elect to form a trust, or to utilize a pre-existing
      trust, to purchase and hold shares of Company Common Stock, subject to
      compliance with all applicable tax and securities laws. If the Bank elects
      to
      use a trust to fund its obligations under the Plan, a Participant shall have
      no
      right to demand the transfer to him of stock or other assets from the Bank
      or
      from such trust formed or utilized by the Bank. Any shares of Company Common
      Stock held in a trust may be distributed to a Participant in payment of part
      or
      all of the Company’s and the Bank’s obligations under the Plan. The right of a
      Participant or his designated beneficiary to receive a distribution hereunder
      shall be an unsecured claim against the general assets of the Company and the
      Bank, and neither the Participant nor a designated beneficiary shall have any
      rights in or against any specific assets of the Company or the
      Bank.

    

    10.2.                      General
      Conditions.  Nothing in this Plan shall operate or be
      construed in any way to modify, amend or affect the terms and provisions of
      the
      ESOP.

    

    10.3.                      No
      Guarantee of Benefits.  Nothing contained in the Plan
      shall constitute a guarantee by the Company and the Bank or any other person
      or
      entity that the assets of the Company and the Bank will be sufficient to pay
      any
      benefit hereunder.

    

    10.4.                      No
      Enlargement of Employee Rights.  No
      Participant shall have any right to receive a distribution of contributions
      made
      under the Plan except in accordance with the terms of the
      Plan.  Establishment of the Plan shall not be construed to give any
      Participant the right to be retained in the service of the Company and the
      Bank.

    

    10.5.                      Spendthrift
      Provision.  No interest of any person or
      entity in, or right to receive a distribution under, the Plan shall be subject
      in any manner to sale, transfer, assignment, pledge, attachment, garnishment,
      or
      other alienation or encumbrance of any kind; nor may such interest or right
      to
      receive a distribution be taken, either voluntarily or involuntarily, for the
      satisfaction of the debts of, or other obligations or claims against, such
      person or entity, including claims for alimony, support, separate maintenance
      and claims in bankruptcy proceedings.

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    10.6.                      Applicable
      Law.  The Plan shall be construed and
      administered under the laws of the State of Connecticut to the extent such
      laws
      are not superseded by federal law.

    

    10.7.                      Incapacity
      of Recipient.  If any person entitled to a
      distribution under the Plan is deemed by the Company and the Bank to be
      incapable of personally receiving and giving a valid receipt for such payment,
      then, unless and until claim therefor shall have been made by a duly appointed
      guardian or other legal representative of such person, the Company and the
      Bank
      may provide for such payment or any part thereof to be made to any other person
      or institution then contributing toward or providing for the care and
      maintenance of such person.  Any such payment shall be a payment for
      the account of such person and a complete discharge of any liability of the
      Company and the Bank and the Plan therefor.

    

    10.8.                      Corporate
      Successors.  The Plan shall not be
      automatically terminated by a transfer or sale of assets of the Company and
      the
      Bank or by the merger or consolidation of the Company and the Bank into or
      with
      any other company or other entity, but the Plan shall be continued after such
      sale, merger or consolidation only if and to the extent that the transferee,
      purchaser or successor entity agrees to continue the Plan.  In the
      event that the Plan is not continued by the transferee, purchaser or successor
      entity, then the Plan shall terminate subject to the provisions of Section
      9.2
      of the Plan.

    

    10.9.                      Unclaimed
      Benefit.  Each Participant shall keep the
      Company and the Bank informed of his current address and the current address
      of
      his designated beneficiary.  The Company and the Bank shall not be
      obligated to search for the whereabouts of any person.  If the
      location of a Participant is not made known to the Company and the Bank within
      three (3) years after the date on which payment of the Participant’s account may
      first be made, payment may be made as though the Participant had died at the
      end
      of the three-year period.  If, within one additional year after such
      three-year period has elapsed, or, within three years after the actual death
      of
      a Participant, the Company and the Bank is unable to locate any designated
      beneficiary of the Participant, then the Company and the Bank shall have no
      further obligation to pay any benefit hereunder to such Participant or
      designated beneficiary and such benefit shall be irrevocably
      forfeited.

    

    10.10.                      Limitations
      on Liability.  Notwithstanding any of the
      preceding provisions of the Plan, neither the Company and the Bank nor any
      individual acting as employee or agent of the Company and the Bank shall be
      liable to any Participant, former Participant or other person for any claim,
      loss, liability or expense incurred in connection with the Plan.

    

    10.11                      Gender
      and Number.  Whenever any words are used
      herein in the masculine, feminine or neuter gender, they shall be construed
      as
      though they were also used in another gender in all cases where they would
      so
      apply, and whenever any words are used herein in the singular or plural form,
      they shall be construed as though they were also used in the other form in
      all
      cases where they would so apply.

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Company and the Bank have caused this Plan to be
      executed by their duly authorized officers on this 25th day of September
      2007.

    

    
      	 	
              NEWALLIANCE
                BANCSHARES, INC.

            
	 	 
	
              Attest:

            	 
	 	 
	 	 
	
              By: 
                ___________________

            	
              By: 
                ______________________

            
	
              Name:
                Brian S. Arsenault

            	
              Name:  Peyton
                R. Patterson

            
	
              Title:
                Executive Vice President

            	
              Title:  Chairman,
                President and Chief

            
	
                and
                Corporate Secretary

            	
                 Executive
                Officer

            
	 	 
	 	
              NEWALLIANCE
                BANK

            
	 	 
	
              Attest:

            	 
	 	 
	 	 
	
              By: 
                ____________________

            	
              By: 
                ________________________

            
	
              Name:
                Brian S. Arsenault

            	
              Name:  Peyton
                R. Patterson

            
	
              Title:
                Executive Vice President

            	
              Title:  Chairman,
                President and Chief

            
	
                and
                Corporate Secretary

            	
              Executive
                Officer

            

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    APPENDIX
      A

    

    

    The
      Board, Company and Bank have designated the following persons as Participants
      in
      the NewAlliance Bancshares, Inc. Employee Stock Ownership Plan Supplemental
      Executive Retirement Plan:

    

    1.           Peyton
      R. Patterson

    2.           Merrill
      B. Blanksteen

    3.           Gail
      E. D. Brathwaite

    4.           Brian
      S. Arsenault

    5.           Donald
      T. Chaffee

    6.           Koon-Ping
      Chan

    7.           J.
      Edward Diamond

    8.           Paul
      A. McCraven

    9.           Diane
      L. Wishnafski

    

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    APPENDIX
      B

    

    

    PAYMENT
      ELECTION FORM

    

    NEWALLIANCE
      BANCSHARES, INC. EMPLOYEE STOCK OWNERSHIP PLAN

    AMENDED
      AND RESTATED SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

    

    
_______________________

    Date

    

    

    I
      acknowledge receipt of a copy of the
      Employee Stock Ownership Plan Amended and Restated Supplemental Executive
      Retirement Plan (the “Plan”) of NewAlliance Bancshares, Inc. (the “Company”) and
      NewAlliance Bank (the “Bank”) and understand that the Plan and this Payment
      Election Form constitute a binding agreement between myself and the Company
      and
      the Bank.  I further acknowledge that I have no rights to any amounts
      deferred pursuant to the Plan until the time of distribution pursuant to the
      provisions of Article VI of the Plan.

    

    This
      Payment Election Form sets forth
      below my election as to the timing of payment of the vested portion of my
      Accumulation Account (as defined in the Plan) under the Plan. All payments
      under
      the Plan will be subject to the terms and conditions of the Plan which are
      incorporated herein by reference.  Any capitalized terms used in this
      Payment Election Form but not otherwise defined herein shall have the meanings
      set forth in the Plan.

    

    I
      acknowledge that my election will
      apply to all amounts deferred on my behalf under the Plan and can only be
      changed in a manner which complies with Section 409A of the Internal Revenue
      Code.  Please note that a distribution of your Stock Units Account
      will be solely in the form of Company Common Stock (as defined in the
      Plan).  Cash will not be paid in lieu of fractional shares in order to
      preserve preferential accounting treatment on behalf of the Plan.

    

    My
      period of deferral, with respect to
      amounts deferred under the Plan, shall expire at the earliest time specified
      below (check as many as apply to you):

     

    
      
        	
                G

              	
                1.

              	
                Upon
                  my Separation from Service, excluding termination due to death
                  or
                  Disability or in connection with a Change in Control, I elect to
                  receive
                  settlement of my Accumulation Account by (check one):

              
	 	 	 	 
	 	 	
                ____

              	
                Lump
                  sum distribution on the first day of the month following the lapse
                  of six
                  months after the Separation from Service has occurred;
                  or

              

      

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      
        	 	 	 	 
	 	 	
                ____

              	
                Commencement
                  of ____ annual installment payments on the first day of the month
                  following the lapse of six months after the Separation from Service
                  has
                  occurred (up to 10 installment payments permitted).

              
	
                and/or

              
	 	 	 	 
	 	 	 	 
	
                G

              	
                2.

              	
                Upon
                  my termination of employment due to death or Disability, I elect
                  to
                  receive settlement of my Accumulation Account by (check
                  one):

              
	 	 	 	 
	 	 	
                ____

              	
                Lump
                  sum distribution as soon as administratively feasible after the
                  occurrence
                  of such event; or

              
	 	 	 	 
	 	 	
                ____

              	
                Commencement
                  of ____ annual installment payments as soon as administratively
                  feasible
                  after the occurrence of such event (up to 10 installment payments
                  permitted).

              
	
                and/or   

              
	 	 	 	 
	
                G

              	
                3.

              	
                Upon
                  the occurrence of a Change in Control, I elect to receive settlement
                  of my
                  Accumulation Account by (check one):

              
	 	 	 	 
	 	 	
                ____

              	
                Lump
                  sum distribution as soon as administratively feasible after the
                  occurrence
                  of such event; or

              
	 	 	 	 
	 	 	
                ____

              	
                Commencement
                  of ____ annual installment payments as soon as administratively
                  feasible
                  after the occurrence of such event (up to 10 installment payments
                  permitted).

              
	
                and/or   

              
	 	 	 	 
	
                G

              	
                4.

              	
                On
                  ________ ___, 20__, I elect to receive my Accumulation Account
                  by (check
                  one):

              
	 	 	 	 
	 	 	
                _____

              	
                Lump
                  sum settlement; or

              
	 	 	 	 
	 	 	
                _____

              	
                Commencement
                  of ____ annual installment payments (up to 10 installment payments
                  permitted).

              
	 	 	 	 

      

    

    
I
      understand that any balance remaining
      in my Accumulation Account, as of the date of the last distribution to be made
      to me pursuant to my elections above, will be added to and distributed in said
      last distribution.

    

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    I
      understand that if I subsequently
      elect on or after January 1, 2008 to change my payment election to delay the
      timing of the payment from the timing that I previously elected, then (1) the
      subsequent election must be made before I have a Separation from Service, (2)
      the subsequent election cannot take effect until at least 12 months after the
      date on which the subsequent election is made and accepted by the Committee,
      (3) the first payment pursuant to the subsequent election (other than
      elections with respect to death or Disability) shall be deferred for at least
      five years from the date the payment would otherwise have been made, and (4)
      the
      subsequent election must be made at least 12 months before the date on which
      any
      benefit payments as of a fixed date or pursuant to a fixed schedule are
      scheduled to commence.

    

    
      	 	
              PARTICIPANT

            
	 	 
	 	 
	 	
              Signature:  _____________________________

            
	 	 
	 	 
	 	
              Printed
                Name:_____________________________

            
	 	 
	 	 
	
              The
                Bank hereby acknowledges the receipt of this 

            
	
              Payment
                Election Form. 

            
	 	 
	
              Name:  __________________________________ 

            
	 	 
	
              Date
                Received:_____________________________ 

            

    

    

    18

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00130-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00130-of-00352.parquet"}]]