Document:

Exhibit 4.1

                              SPARTECH CORPORATION
                          2004 EQUITY COMPENSATION PLAN

                                    Article I
                             Purpose And Definitions

    1.1   Purpose.  This Spartech Corporation 2004 Equity Compensation Plan (the
"Plan") has been established by Spartech Corporation (the "Company") to promote
the long-term financial interest of the Company and its shareholders by (i)
enhancing the Company's ability to attract and retain persons eligible to
participate in the Plan, through incentive compensation opportunities that are
competitive with those of other similar companies, and (ii) providing an
incentive for the participants in the Plan to identify their interests with
those of the Company's other shareholders, through compensation based on the
value of the Company's Common Stock.

    1.2   Definitions.

    "Award" means a right granted to an Eligible Person to receive Options,
Restricted Stock or Restricted Stock Units pursuant to the Plan.

    "Board" means the Board of Directors of the Company.

    "Committee" means (i) the Governance Committee of the Board with respect to
Awards to members of the Board in their capacity as directors of the Company, or
(ii) the Compensation Committee of the Board with respect to all other Awards.

    "Common Stock" means the authorized common stock of the Company, subject to
any adjustments under Section 2.3.

    "Company" has the meaning stated in Section 1.1.

    "Eligible Person" means:

    (i) An employee of the Company or any of its Subsidiaries, with respect to
        Awards of Options or Restricted Stock; or

    (ii)     A management or highly compensated employee of the Company or any
        of its Subsidiaries, with respect to Awards of Restricted Stock Units;
        or

    (iii)    A non-employee member of the Board, with respect to Awards of
        Options (other than Incentive Stock Options), Restricted Stock, or
        Restricted Stock Units.

    "Incentive Stock Option" means an Option which is intended to satisfy the
requirements applicable to an "incentive stock option" described in Section
422(b) of the Internal Revenue Code.

    "Option" means a right granted to an Eligible Person to purchase Common
Stock under this Plan, at a price, for a period of time, and on such other terms
and conditions as are established by the Committee consistent with this Plan.

    "Participant" means an Eligible Person who has received an Award under the
Plan.

    "Plan" has the meaning stated in Section 1.1.

    "Restricted Stock" and "Restricted Stock Units" have the meanings stated in
Section 3.1.

    "Subsidiary" means a corporation, limited liability company, partnership,
joint venture or other business entity of which at least a 50% voting or profits
interest is owned, directly or indirectly, by the Company, and any other
business venture designated by the Committee in which the Company has a
significant interest as determined in the discretion of the Committee.

                                   Article II
                               Granting of Awards

    2.1   Participation.  Subject to the other terms and conditions of the Plan,
the Committee shall determine and designate, from time to time in its sole
discretion, from among the Eligible Persons, those persons who will be granted
one or more Awards under the Plan and who will thereby become Participants in
the Plan.  The Committee shall also approve the names of all persons to whom
Awards are proposed to be made, and shall determine, within the limits set forth
in the Plan, the type of Award, the maximum number of shares to be issued
pursuant to the Award, the exercise price (if any) to be paid by the
Participant, the vesting schedule (if any), and the other terms and conditions
of any Award to be granted hereunder.  The Committee may receive the
recommendations of the officers and managers of the Company with respect
thereto.

    2.2   Shares Available for Awards.  The maximum amount of Common Stock for
which Awards may be granted under the Plan is Three Million (3,000,000) shares.
Award shares may be issued either from authorized but unissued shares or from
shares reacquired by the Company, whether purchased in the open market or in
private transactions.  Shares subject to issuance under Awards which expire or
are cancelled without delivery of shares shall again become available for Awards
under the Plan; but shares subject to issuance under Awards which are settled in
cash, and shares which are withheld to pay the exercise price or tax withholding
with respect to an Award, shall not be available for new Awards.

    2.3   Adjustments to Shares.  Upon any stock split, reverse stock split or
stock dividend in excess of 5%, or any other recapitalization, combination or
exchange affecting the Common Stock generally, the number and kind of shares of
Common Stock available for issuance under the Plan shall be appropriately and
automatically adjusted.  The Committee may in its discretion provide for similar
adjustments of outstanding Awards upon any of such events or in the event of any
other combination or exchange of shares, spin-off, split-up, merger or
consolidation or similar event affecting the Common Stock generally, in order to
preserve the benefits or potential benefits of the Awards.

    2.4   Limitation on Individual Grants.  No Participant may receive Awards
under the Plan during any fiscal year of the Company for more than 2% of the
shares of Common Stock outstanding (i.e. excluding treasury shares) as of the
end of the Company's previous fiscal year.

    2.5   Limited Delegation of Authority.  Notwithstanding Section 2.1 or any
other provision of the Plan, the Board may, from time to time by express
resolution, pursuant to section 157(c) of the Delaware General Corporation Law
and subject to such limitations as are set out in such section or included in
such Board resolution, authorize one or more officers of the Company to do one
or both of the following:  (i) designate Eligible Persons other than the
Company's executive officers and directors to be recipients of Awards and (ii)
determine the type and size of Awards to be received by such Eligible Persons.

                                   Article III
                                 Terms Of Awards

    3.1   Types Of Awards.  Subject to the provisions of the Plan and applicable
laws and regulations, Awards may be made in the form of (i) Options, (ii) shares
of Common Stock subject to certain terms and conditions ("Restricted Stock") or
(iii) the right to receive shares of Common Stock in the future subject to
certain terms and conditions ("Restricted Stock Units").  The terms and
conditions of each Award shall be determined by the Committee in its sole
discretion and may include, by way of example, continued service with the
Company for a stated period of time and/or the attainment of stated performance
goals by the Participant, the Company or any business unit thereof.

    3.2   Terms of Options.  With respect to each Option, the Committee shall
determine in its discretion the terms of the Option, including without
limitation:

    (i) The exercise price per share, provided that the exercise price shall not
        be less than the fair market value of the shares subject to the Option
        on the date the Option is granted, or if greater, the par value of the
        shares.  Except as incidental to adjustments under Section 2.3, the
        exercise price of an outstanding Option may not be decreased after the
        date of grant, nor may an outstanding Option be surrendered to the
        Company as consideration for the grant of a new Option with a lower
        exercise price.

    (ii)     The times at which any Option granted hereunder may be exercised,
        including the times at which, and/or the conditions subject to which,
        the Option will first become exercisable in whole or in part, which may
        include, by way of example and not limitation, continued service with
        the Company for a stated period of time and/or the attainment of stated
        performance goals by the Participant, the Company or any business unit
        thereof.

    (iii)    Such other terms as the Committee may deem appropriate, including
        without limitation the procedures for exercising the Option, the manner
        of payment of the exercise price and any tax withholding obligations,
        and any restrictions on the exercise or transfer of the Option or on the
        transfer of the underlying Shares.

    (iv)     No Option granted under the Plan shall contain any "reload"
        provision entitling the optionee to the automatic grant of additional
        options in connection with any exercise of the original option.

    3.3   Terms of Incentive Stock Options.  In addition to the other provisions
of the Plan, Incentive Stock Options shall be subject to all laws and
regulations from time to time applicable to "incentive stock options," and shall
be subject to the following specific provisions:

    (i) Members of the Board who are not also employees may not receive
        Incentive Stock Options.

    (ii)     No Incentive Stock Option shall be exercisable in whole or in part
        later than the day preceding the 10th anniversary of the grant date.

    (iii)    Incentive Stock Options may not be transferred other than by will
        or the laws of descent and distribution, and may be exercised during the
        lifetime of the Participant to whom it is granted only by such
        Participant.

    (iv)     An Incentive Stock Option granted to a person who at the time of
        the grant owns stock possessing more than 10% of the total combined
        voting power of all classes of stock of the Company or any subsidiary or
        parent company (A) shall have an exercise price at least 110% of the
        fair market value of the Shares subject to the Option on the date the
        Option is granted and (B) shall not be exercisable after the expiration
        of five years from the date the Option is granted.

To the extent that an Incentive Stock Option does not meet the requirements of
Section 422(b) of the Internal Revenue Code the Option shall not be void but
shall be treated as an Option other than an Incentive Stock Option.  No
Participant shall have any claim for damages or any other recourse against the
Company, the Board or the Committee because of the failure of any Option to be
an "incentive stock option."

    3.4   Rights of Holders of Restricted Stock.  Except as otherwise provided
in an individual Award, a Participant who receives Restricted Stock shall have
all rights as a stockholder with respect to such shares, including the right to
vote the shares and receive dividends and other distributions.

    3.5   Rights of Holders of Restricted Stock Units.  Subject to the
restrictions set forth in an individual Award, a Participant who receives
Restricted Stock Units shall be eligible to receive, at the expiration of the
applicable restricted period, one share of Common Stock for each Restricted
Stock Unit awarded, at which time the Company shall issue to each such
Participant that number of shares of Common Stock.  Except as otherwise provided
in an individual Award, a Participant who receives Restricted Stock Units shall
have no rights as a stockholder with respect to such Restricted Stock Units
until such time as shares for such Common Stock are issued to the Participant.

    3.6   Vesting.  Awards to employees of the Company or a Subsidiary may not
vest earlier than at a rate of 25% per year from the date of grant, except upon
the death, disability or retirement of the employee or a change in control of
the Company.

    3.7   Awards to Be in Writing.  The grant, terms and conditions of each
Award shall be evidenced by a written agreement or other written documentation,
a copy of which shall be provided to the Participant.  The Committee may require
the Participant to execute such agreement or otherwise accept the grant and
terms as a condition of the Award.  In the event of any irreconcilable
inconsistency between the provisions of the Plan and the terms or conditions of
an Award, the provisions of the Plan shall govern.

    3.8   Limitation of Implied Rights.  Neither a Participant nor any other
person shall acquire any right in or title to any assets, funds or property of
the Company or any Subsidiary by reason of participation in the Plan or the
grant of any Award.  Neither the Plan nor any Award will constitute a contract
of employment or give any Eligible Person any right to be retained in the employ
of the Company or a Subsidiary.  No Eligible Person or Participant will have any
right under the Plan or any Award or as a shareholder of the Company except to
the extent such right has accrued under the terms of the Plan and the Award.

                                   Article IV
                       Administration; Term And Amendment

    4.1   Administration.  The Plan shall be administered by the Committee,
which may in its discretion interpret the Plan; establish, amend and rescind
rules and regulations, forms, notices and agreements relating to the Plan; and
make all determinations necessary or advisable for the operation of the Plan.
Subject to the provisions of the Plan, the charter and bylaws of the Company and
applicable laws, all ultimate powers of approval shall be vested in the
Committee as a body, and the Committee shall have absolute and final discretion
with respect to all determinations under the Plan.

    4.2   Approval; Duration.  Subject to the approval of the shareholders of
the Company at the Company's 2004 annual meeting of its shareholders, the Plan
shall become effective as of the date of such meeting.  Awards may be made from
time to time thereafter in the discretion of the Committee, but no Awards shall
be made hereunder after December 31, 2010.  The Plan shall continue until all
shares of Common Stock subject to outstanding Awards have been issued and no
Awards remain outstanding.

    4.3   Amendments and Termination.  The Board may at any time amend or
terminate the Plan; provided that no amendment may, without the further approval
of the Company's shareholders, (i) materially increase the maximum amount of
Common Stock that may be issued pursuant to Awards hereunder (except for
adjustments under Section 2.3), or (ii) expand the types of Awards that may be
granted, or (iii) materially extend the term of the Plan, or (iv) permit the
granting of Options at less than fair market value, or (v) permit the repricing
of outstanding Options (except for adjustments under Section 2.3), or
(vi) increase the maximum number of shares which may be granted to any single
Participant.  Any amendment shall comply with all applicable rules and
regulations of the New York Stock Exchange and the Securities and Exchange
Commission.  No amendment or termination may adversely affect the rights of any
Participant which exist on the date the amendment or termination becomes
effective, without the written consent of the Participant.ASTORIA FEDERAL SAVINGS & LOAN ASSOCIATION

                             INCENTIVE SAVINGS PLAN

                            Adopted December 29, 1983
                          Effective as of June 14, 1983
             As Amended and Restated Effective as of January 1, 1994
          Incorporating Amendments No. 1, 2 , 3, 4, 5, 6, 6A, 7, 8 & 9

     The favorable determination letter dated February 26, 2004 only covers
   amendments 1 through 6A. The favorable determination letter does not cover
                             amendments 7, 8 and 9.

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                                                 TABLE OF CONTENTS

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                                                     Article I

                                                    DEFINITIONS

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Section 1.1       Accounts........................................................................................1
Section 1.2       Actual Deferral Percentage......................................................................1
Section 1.3       Affiliated Employer.............................................................................1
Section 1.4       After-Tax Contributions.........................................................................1
Section 1.5       After-Tax Account ..............................................................................1
Section 1.6       Average Actual Deferral Percentage..............................................................2
Section 1.7       Average Contribution Percentage.................................................................2
Section 1.8       Basic Deferred Contribution Limit...............................................................2
Section 1.9       Beneficiary.....................................................................................2
Section 1.10      Board...........................................................................................2
Section 1.11      Break in Service................................................................................2
Section 1.12      Catch-up Deferred Contribution .................................................................2
Section 1.13      Catch-up Deferred Contribution Limit............................................................3
Section 1.14      Code............................................................................................3
Section 1.15      Company.........................................................................................3
Section 1.16      Company Contribution............................................................................3
Section 1.17      Company Contribution  Account...................................................................3
Section 1.18      Compensation....................................................................................3
Section 1.19      Computation Period..............................................................................4
Section 1.20      Contribution Percentage.........................................................................4
Section 1.21      Corporate Insider...............................................................................4
Section 1.22      Deferred Contribution ..........................................................................4
Section 1.23      Deferred Contribution Account...................................................................4
Section 1.24      Designated Beneficiary..........................................................................4
Section 1.25      Disability......................................................................................5
Section 1.26      Discretionary Transaction ......................................................................5
Section 1.27      Domestic Relations Order........................................................................5
Section 1.28      Effective Date..................................................................................6
Section 1.29      Eligible Employee...............................................................................6
Section 1.30      Eligibility Computation Period..................................................................6
Section 1.31      Employee........................................................................................6
Section 1.32      Employer Stock Fund.............................................................................6
Section 1.33      Employment Commencement Date....................................................................6
Section 1.34      Employment Recommencement Date..................................................................6
Section 1.35      Entry Date......................................................................................6
Section 1.36      ERISA...........................................................................................6
Section 1.39      Family Member...................................................................................7
Section 1.40      Fiduciaries.....................................................................................7

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Section 1.41      Five Percent Owner..............................................................................7
Section 1.42      Forfeitures.....................................................................................7
Section 1.43      Former Member...................................................................................7
Section 1.44      Hardship........................................................................................7
Section 1.45      Highly Compensated Employee.....................................................................7
Section 1.46      Hour of Service ................................................................................9
Section 1.47      Investment Fund ................................................................................9
Section 1.48      Maternity and Paternity Leave...................................................................9
Section 1.49      Member..........................................................................................9
Section 1.50      Normal Retirement Date.........................................................................10
Section 1.51      Officer........................................................................................10
Section 1.52      Plan...........................................................................................10
Section 1.53      Plan Administrator.............................................................................10
Section 1.54      Plan Year......................................................................................10
Section 1.55      Profits........................................................................................10
Section 1.56      Qualified Domestic Relations Order.............................................................10
Section 1.57      Qualified Military Leave.......................................................................11
Section 1.58      Retroactive Company Contribution...............................................................11
Section 1.59      Retroactive Deferred Contribution..............................................................11
Section 1.60      Retroactive Safe Harbor Contribution...........................................................11
Section 1.61      Rollover Account...............................................................................11
Section 1.62      Rollover Contribution..........................................................................11
Section 1.63      Safe Harbor Account............................................................................11
Section 1.64      Safe Harbor Contribution.......................................................................12
Section 1.65      Share..........................................................................................12
Section 1.66      Total Compensation.............................................................................12
Section 1.67      Trust..........................................................................................12
Section 1.68      Trust Agreement................................................................................12
Section 1.69      Trust Fund.....................................................................................13
Section 1.70      Trustee........................................................................................13
Section 1.71      Valuation Date.................................................................................13
Section 1.72      Vesting Computation Period.....................................................................13
Section 1.73      Year of Eligibility Service....................................................................13
Section 1.74      Year of Vesting Service........................................................................13

                                                    ARTICLE II

                                                SPECIAL SITUATIONS

Section 2.1       Military Service...............................................................................14
Section 2.2       Maternity and Paternity Leave..................................................................14
Section 2.3       Leave of Absence...............................................................................15
Section 2.4       Family and Medical Leave.......................................................................15

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                                                    ARTICLE III

                                              MEMBERSHIP IN THE PLAN

Section 3.1       Eligibility for Participation..................................................................15
Section 3.2       Commencement of Membership.....................................................................17
Section 3.3       Termination of Membership......................................................................17
Section 3.4       Membership After a Break in Service............................................................17

                                                    ARTICLE IV

                                          ELECTIVE DEFERRED CONTRIBUTIONS

Section 4.1       Deferred Contributions.........................................................................18
Section 4.2       Changes in Rate of Deferred Contributions......................................................18
Section 4.3       Rollover Contributions.........................................................................18
Section 4.4       Retroactive Deferred Contributions.............................................................18
Section 4.5       Catch-up Deferred Contributions................................................................19
Section 4.6       ESOP Transfer Contributions....................................................................20
Section 4.7       Delivery of Contributions for Investment.......................................................20
Section 4.8       Suspension of Contributions....................................................................20

                                                     ARTICLE V

                                           CONTRIBUTIONS BY THE COMPANY

Section 5.1       Company Contributions..........................................................................21
Section 5.2       Safe Harbor Contributions......................................................................21
Section 5.3       Retroactive Company Contributions..............................................................22
Section 5.4       Delivery of Contributions for Investment.......................................................22

                                                    ARTICLE VI

                                           LIMITATIONS ON CONTRIBUTIONS

Section 6.1       Limitations on Deferred Contributions Credited
                  to Members' Deferred Contribution Accounts.....................................................22
Section 6.2       Limitations on Contributions and Forfeitures...................................................24
Section 6.3       Limitations on Deferred Contributions by Highly
                  Compensated Employees..........................................................................27
Section 6.4       Limitations on Company Contributions...........................................................29
Section 6.5       Aggregate Limitation on Actual Deferral Percentage
                  and Contribution Percentage....................................................................31

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                                                    ARTICLE VII

                                             SAFE HARBOR CONTRIBUTIONS

Section 7.1       Allocation of Safe Harbor Contributions........................................................32

                                                   ARTICLE VIII

                                                      VESTING

Section 8.1       Vesting Schedule...............................................................................32
Section 8.2       Vesting Upon Death or Attaining Age 65.........................................................33
Section 8.3       Forfeitures....................................................................................33
Section 8.4       Vesting of an Excluded Employee................................................................35

                                                    ARTICLE IX

                                                    PLAN ASSETS

Section 9.1       Control of Assets..............................................................................35
Section 9.2       The Investment Funds...........................................................................35
Section 9.3       Investment Directions..........................................................................35
Section 9.4       Change of Investment Directions................................................................36
Section 9.5       Transfers Among Investment Funds...............................................................36
Section 9.6       Transfer of Assets in Merger with The Long
                  Island Savings Bank 401(k) Savings Plan........................................................36
Section 9.7       Valuation of Accounts..........................................................................36
Section 9.8       Statements of Account..........................................................................37
Section 9.9       Administration to Comply with Section 404(c)...................................................37
Section 9.10      Pass-through Rights............................................................................37
Section 9.11      Fiduciary Obligation to Implement Instructions.................................................37

                                                     ARTICLE X

                                        INVESTMENTS IN EMPLOYER STOCK FUND
Section 10.1      In General.....................................................................................37
Section 10.2      Restrictions on Investments by Corporate Insiders..............................................37
Section 10.3      Compliance with Securities Laws................................................................39
Section 10.4      Voting Rights..................................................................................39
Section 10.5      Tender  Rights.................................................................................40
Section 10.6      Appraisal Rights...............................................................................40

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                                                    ARTICLE XI

                                              DISTRIBUTIONS AND LOANS
Section 11.1      In General.....................................................................................41
Section 11.2      Loans..........................................................................................41
Section 11.3      Withdrawals During Employment..................................................................45
Section 11.4      Distributions on Termination of Employment.....................................................47
Section 11.5      Payments to Beneficiaries......................................................................48
Section 11.6      Distribution in Shares.........................................................................49
Section 11.7      Direct Rollovers...............................................................................50
Section 11.8      Minimum Distribution Requirements..............................................................51

                                                    ARTICLE XII

                                                  ADMINISTRATION

Section 12.1      Plan Administrator.............................................................................53
Section 12.2      Plan Administrator's Powers and Responsibilities...............................................53
Section 12.3      Claims Procedure...............................................................................54
Section 12.4      Claims Review Procedure........................................................................55
Section 12.5      Allocation of Fiduciary Responsibilities and
                  Employment of Advisors.........................................................................55
Section 12.6      Other Administrative Provisions................................................................56

                                                   ARTICLE XIII

                                             AMENDMENT AND TERMINATION

Section 13.1      Amendment and Termination......................................................................57
Section 13.2      Amendment or Termination Other Than by Astoria
                  Federal Savings and Loan Association...........................................................57
Section 13.3      Conformity to U.S. Internal Revenue Code.......................................................57
Section 13.4      Contingent Nature of Contributions.............................................................58

                                                    ARTICLE XIV

                                      SPECIAL RULES FOR TOP HEAVY PLAN YEARS

Section 14.1      In General.....................................................................................58
Section 14.2      Determination of Top Heavy Plan................................................................58
Section 14.3      Determination Date.............................................................................59
Section 14.4      Cumulative Accrued Benefits....................................................................59
Section 14.5      Key Employees..................................................................................60
Section 14.6      Required Aggregation Group.....................................................................60

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Section 14.7      Permissible Aggregation Group..................................................................61
Section 14.8      Special Requirements During Top Heavy Plan Years...............................................61

                                                    ARTICLE XV

                                             MISCELLANEOUS PROVISIONS

Section 15.1      Governing Law..................................................................................62
Section 15.2      Headings.......................................................................................62
Section 15.3      No Right to Continued Employment...............................................................62
Section 15.4      Construction of Language.......................................................................62
Section 15.5      Merger with Other Plans........................................................................62
Section 15.6      Non-alienation of Benefits.....................................................................63
Section 15.7      Procedures Involving Domestic Relations Orders.................................................63
Section 15.8      Enforceability.................................................................................64
Section 15.9      Effect of Restatement..........................................................................64

                                                    ARTICLE XVI

                                     SPECIAL RULES FOR FORMER PARTICIPANTS IN
                                 THE LONG ISLAND SAVINGS BANK 401(K) SAVINGS PLAN

Section 16.1      Merger with LISB Plan..........................................................................64
Section 16.2      Accounts of LISB Participants..................................................................64
Section 16.3      Status as Member...............................................................................65
Section 16.4      Distribution Provisions........................................................................65

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                   ASTORIA FEDERAL SAVINGS & LOAN ASSOCIATION
                             INCENTIVE SAVINGS PLAN

                                    ARTICLE I

                                   DEFINITIONS

                  For purposes of the Plan, the following words and phrases
shall have the following meanings, unless a different meaning is plainly
required by the context:

                  SECTION 1.1 ACCOUNTS means, with respect to any person, the
aggregate of such of the Company Contribution Account, Safe Harbor Account,
Deferred Contribution Account, Rollover Account and ESOP Transfer Account as
shall be established under the Plan for such person.

                  SECTION 1.2 ACTUAL DEFERRAL PERCENTAGE means, for any Eligible
Employee, the ratio (expressed as a percentage) of: (a) the amount for each Plan
Year of (i) such Eligible Employee's Deferred Contributions not included in
computing his Contribution Percentage, plus (ii) if necessary to comply with the
limitations of section 6.3(a) (and, for Plan Years beginning after December 31,
1996, subject to such conditions as may be imposed by or under the authority of
the Secretary of the Treasury), any Safe Harbor Contributions made under section
5.2 not included in computing his Contribution Percentage; to (b) his Total
Compensation for such Plan Year. For purposes of this section 1.2, Retroactive
Deferred Contributions shall be treated as Deferred Contributions for the Plan
Year included in a period of Qualified Military Service for which they are made,
and not for the Plan Year during which they are made. For Plan Years beginning
after December 31, 2001, Catch-up Deferred Contributions, if any, shall be not
taken into account in computing the Actual Deferral Percentage of any Eligible
Employee.

                  SECTION 1.3 AFFILIATED EMPLOYER means any corporation which is
a member of a controlled group of corporations (as defined in section 414(b) of
the Code) that includes the Company; any trade or business (whether or not
incorporated) that is under common control (as defined in section 414(c) of the
Code) with the Company; any organization (whether or not incorporated) that is a
member of an affiliated service group (as defined in section 414(m) of the Code)
that includes the Company; any leasing organization (as defined in section
414(n) of the Code) to the extent that any of its employees are required
pursuant to section 414(n) of the Code to be treated as employees of the
Company; and any other entity that is required to be aggregated with the Company
pursuant to regulations under section 414(o) of the Code. An entity shall be
considered an Affiliated Employer only for such period of time as it is
described in this section 1.3.

                  SECTION 1.4 AFTER-TAX CONTRIBUTIONS shall mean contributions
made by participants under the Long Island Savings Bank 401(k) Savings Plan
prior to its merger into this Plan that were not treated as "elective deferrals"
under section 402(g) of the Code.

                  SECTION 1.5 AFTER-TAX ACCOUNT means an account established for
each Member to which are credited all of such Member's After-Tax Contributions,
together with all earnings and appreciation thereon, and against which are
charged any withdrawals that may be permitted and any losses, depreciation or
expenses allocable to amounts credited to such account.

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                  SECTION 1.6 AVERAGE ACTUAL DEFERRAL PERCENTAGE means, for any
group of Eligible Employees, the arithmetic average (expressed as a percentage)
of the Actual Deferral Percentages of all Eligible Employees in the specified
group. An Eligible Employee in the specified group whose Actual Deferral
Percentage is zero shall be included in determining such average.

                  SECTION 1.7 AVERAGE CONTRIBUTION PERCENTAGE means, for any
group of Eligible Employees, the arithmetic average (expressed as a percentage)
of the Contribution Percentages for all Eligible Employees in the specified
group. An Eligible Employee in the specified group whose Contribution Percentage
is zero shall be included in determining such average.

                  SECTION 1.8 BASIC DEFERRED CONTRIBUTION LIMIT means, for any
Member for any Plan Year the maximum dollar amount of Deferred Contributions
which such Member is permitted to make for such Plan Year, after taking into
account any limitation on Deferred Contributions otherwise imposed under the
Plan or the Code, including but not limited to: (a) the maximum percentage
limitation on Basic Deferred Contributions imposed under section 4.1; (b) the
maximum dollar limit on Deferred Contributions imposed under section 6.1; (c)
the limitation on Annual Additions under section 6..2; and (d) in the case of a
Member who is a Highly Compensated Employee, the effects of the limitations on
the Average Deferral Percentage for Highly Compensated Employees under section
6.3.

                  SECTION 1.9 BENEFICIARY means the person or persons designated
by a Member or Former Member, or otherwise determined to be entitled to a
benefit under the Plan, under Article XI. If more than one person is designated,
each shall have an equal share unless the person making the designation directed
otherwise. The word "person" includes an individual, a trust, an estate or any
other person that is permitted under applicable law to be named as a
Beneficiary.

                  SECTION 1.10 BOARD means the Board of Directors of the
Company.

                  SECTION 1.11 BREAK IN SERVICE means any Vesting Computation
Period in which an Employee does not receive credit for more than five hundred
(500) Hours of Service. A "Break-in- Service" shall not be deemed to have
occurred during the first twelve (12) calendar months of an Employee's service
if the Employee completes at least five hundred (500) Hours of Service during
such twelve-month period. A "Break-in-Service" shall not be deemed to have
occurred during an authorized leave of absence unless the Employee fails to
return to service at the end of his leave of absence. A "Break-in-Service" shall
not be deemed to occur because an Employee fails to complete more than five
hundred (500) Hours of Service during a Vesting Computation Period solely
because of his retirement, Disability or death during the Vesting Computation
Period.

                  SECTION 1.12 CATCH-UP DEFERRED CONTRIBUTION means for any
Member for any Plan Year that begins after December 31, 2001 means that portion
of the Member's Deferred Contributions for the Plan Year that are in excess of
the Basic Deferred Contribution Limit for such Member for such Plan Year but not
in excess of the Catch-up Deferred Contribution Limit for such Member for such
Plan Year.

                                       -2-

<PAGE>

                  SECTION 1.13 CATCH-UP DEFERRED CONTRIBUTION LIMIT means, for
any member for any Plan Year that begins after December 31, 2001, the maximum
dollar amount of Catch-up Deferred Contributions which such Member is permitted
to make, as determined in accordance with section 4.5(b).

                  SECTION 1.14 CODE means the Internal Revenue Code of 1986
(including the corresponding provision of any succeeding law).

                  SECTION 1.15 COMPANY means Astoria Federal Savings and Loan
Association, and any other corporation or trade or business which, with the
approval of the Board of Directors of Astoria Federal Savings and Loan
Association and subject to such conditions as may be imposed by the Board of
Directors of Astoria Federal Savings and Loan Association, adopts this Plan.

                  SECTION 1.16 COMPANY CONTRIBUTION means the amount contributed
by the Company out of its current or accumulated profits in accordance with
section 5.1.

                  SECTION 1.17 COMPANY CONTRIBUTION ACCOUNT means an account
established for each Member to which are credited Company Contributions under
section 5.1, together with all earnings and appreciation thereon, and against
which are charged any withdrawals of amounts credited to such account, and
losses, depreciation and expenses allocable to amounts credited to such account.

                  SECTION 1.18 COMPENSATION during any period means the basic
remuneration paid to an Employee by the Company during such period, including
salary, wages, commissions and continuation payments to an Employee who is
absent for sickness or disability, plus the amount by which such Employee's
remuneration with respect to such period has been reduced pursuant to a
compensation reduction agreement under any qualified cash or deferred
arrangement described in section 401(k) of the Code and maintained by the
Company, any tax-deferred annuity described in section 403(b) of the Code and
maintained by the Company, any salary reduction simplified employee pension plan
described in section 125 of the Code and maintained by the Company or any
cafeteria plan described in section 125 of the Code and maintained by the
Company, any salary reduction qualified transportation fringe benefits program
described in section 132(f) of the Code and maintained by the Company or any
Affiliated Employer, and, beginning January 1, 2004, amounts paid under the PEAK
Incentive Program, but excluding bonuses, fees, overtime pay, expenses, meal
allowances, accrued vacation upon termination of employment, and receipts from,
or contributions by the Company to, this Plan, or any public or private pension,
insurance, welfare or other employee benefit plan. In no event shall an
Employee's Compensation (a) for any calendar year beginning after December 31,
1988 and before January 1, 1994 include any compensation in excess of $200,000
(or such other amount as may be permitted under section 401(a)(17) of the Code)
and (b) for any calendar year beginning after December 31, 1993 and before
January 1, 2002 include any compensation in excess of $150,000 (or such other
amount as may be permitted under section 401(a)(17) of the Code) and (c) for any
calendar year beginning after December 31, 2001 include any compensation in
excess of $200,000 (or such other amount as may be permitted under section
401(a)(17) of the Code). For purposes of applying the foregoing limitation in
any Plan Year beginning before January 1, 1997 to any person who is a Five
Percent Owner or who is one of the 10 Highly Compensated Employees with the
highest Total Compensation (determined prior to the

                                       -3-

<PAGE>

application of this sentence), any Compensation paid to the spouse of such
person or to any lineal descendant of such person who has not attained age 19 on
or before the last day of such calendar year shall be deemed to have been paid
to such person.

                  SECTION 1.19 COMPUTATION PERIOD means an Eligibility
Computation Period or a Vesting Computation Period.

                  SECTION 1.20 CONTRIBUTION PERCENTAGE means, for any Eligible
Employee, the ratio (expressed as a percentage) of: (a) the amount for each Plan
Year of (i) the Company Contributions under Article V, plus (ii) if and to the
extent that the Plan Administrator so elects (and, for Plan Years beginning
after December 31, 1996, subject to such conditions as may be imposed by or
under the authority of the Secretary of the Treasury), the Deferred
Contributions and Safe Harbor Contributions not included in computing his Actual
Deferral Percentage; to (b) his Total Compensation for such Plan Year. For
purposes of this section 1.18, any Company Contributions related to Retroactive
Deferred Contributions shall be treated as Company Contributions for the Plan
Year included in the period of Qualified Military Service for which they are
made, and not for the Plan Year during which they are made.

                  SECTION 1.21 CORPORATE INSIDER means any person who is
required to file reports with the Securities and Exchange Commission with
respect to Shares of Astoria Financial Corporation pursuant to section 16 of the
Securities Exchange Act of 1934, as amended.

                  SECTION 1.22 DEFERRED CONTRIBUTION means, for any Member for
any payroll period, amounts which are contributed to the Plan by the Company for
such payroll period pursuant to section 4.1 and which are treated as "elective
deferrals" for purposes of section 402(g) of the Code.

                  SECTION 1.23 DEFERRED CONTRIBUTION ACCOUNT means an account
established for each Member to which are credited all of such Member's Deferred
Contributions, together with all earnings and appreciation thereon, and against
which are charged any withdrawals that may be permitted and any losses,
depreciation or expenses allocable to amounts credited to such account.

                  SECTION 1.24 DESIGNATED BENEFICIARY means a natural person
designated by a Member or Former Member as a Beneficiary under section 11.5 and
shall not include any Beneficiary designated by a person other than a Member or
Former Member or any Beneficiary other than a natural person. If a natural
person is the beneficiary of a trust which a Member or Former Member has named
as his Beneficiary, such natural person shall be treated as a Designated
Beneficiary if: (a) the trust is a valid trust under applicable state law (or
would be a valid trust except for the fact that it does not have a corpus); (b)
the trust is irrevocable or will, by its terms, become irrevocable upon the
death of the Member or Former Member; (c) the beneficiaries of the trust who are
beneficiaries with respect to the trust's interest as a Beneficiary are
identifiable from the terms of the trust investment; and (d) the following
information is furnished to the Plan Administrator:

                           (i) by the Member or Former Member, if any
                  distributions are required to be made pursuant to section 11.8
                  prior to the death of the Member or Former Member and (in the
                  case of distributions after December 31, 2002 only) the
                  Member's or Former Member's spouse is his sole primary

                                       -4-

<PAGE>

                  Beneficiary, either (A) a copy of the trust instrument,
                  together with a written undertaking by the Member or Former
                  Member to furnish a copy of any subsequent amendment to the
                  Plan Administrator within a reasonable time after such
                  amendment is made; or (B)(I) a list of all of the
                  beneficiaries of the trust (including contingent and
                  remainderman beneficiaries with a description of the
                  conditions on their entitlement); (II) a certification of the
                  Member or Former Member to the effect that, to the best of his
                  knowledge, such list is correct and complete and that the
                  conditions of paragraphs (a), (b) and (c) of this section are
                  satisfied; (III) a written undertaking to provide a new
                  certification to the extent that an amendment changes any
                  information previously certified; and (IV) a written
                  undertaking to furnish a copy of the trust instrument to the
                  Plan Administrator on demand; and

                           (ii) by the trustee of the trust within nine months
                  after the death of the Member or Former Member (prior to
                  January 1, 2003) or by October 31st of the first calendar year
                  that begins after the death of the Member or Former Member
                  (subsequent to December 31, 2002), if any distributions are
                  required to be made pursuant to section 11.8 after the death
                  of the Member or Former Member, either (A) a copy of the
                  actual trust instrument for the trust; or (B)(I) a final list
                  of all of the beneficiaries of the trust (including contingent
                  and remainderman beneficiaries with a description of the
                  conditions on their entitlement) as of the date of death
                  (prior to January 1, 2003) or as of September 30th of the
                  first calendar year that begins after the date of death
                  (subsequent to December 31, 2002); (II) a certification of the
                  trustee to the effect that, to the best of his knowledge, such
                  list is correct and complete and that the conditions of
                  paragraphs (a), (b) and (c) of this section are satisfied; and
                  (III) a written undertaking to furnish a copy of the trust
                  instrument to the Plan Administrator on demand.

                  SECTION 1.25 DISABILITY means, with respect to any person, a
determination that upon application by such person that he is qualified for
disability benefits under the Company's Long Term Disability Plan due to an
injury or illness which prevents him from performing the duties of his
occupation, so as to be considered totally and permanently disabled as certified
by a physician agreed upon by both such person and the Company.

                  SECTION 1.26 DISCRETIONARY TRANSACTION means a transaction
pursuant to this Plan or any other employee benefit plan maintained by the
Company or any affiliated of the Company that: (a) is effected at the volition
of a Corporate Insider; (b) results, directly or indirectly, in the acquisition
or disposition of beneficial ownership of Shares by the Corporate Insider; (c)
is not made in connection with the death, disability, retirement or termination
of employment of the Corporate Insider; (d) is not required to be made available
to the Corporate Insider pursuant to any provision of the Code applicable to the
plan; and (e) results in either an intra-plan transfer involving Shares or
investment fund which invests in Shares or a cash distribution funded by a
volitional disposition of Shares or a beneficial interest in Shares.

                                       -5-

<PAGE>

                  SECTION 1.27 DOMESTIC RELATIONS ORDER means a judgment, decree
or order (including the approval of a property settlement) that is made pursuant
to a state domestic relations or community property law and relates to the
provision of child support, alimony payments, or marital property rights to a
spouse, child or other dependent of a Member or Former Member.

                  SECTION 1.28 EFFECTIVE DATE means March 1, 1986.

                  SECTION 1.29 ELIGIBLE EMPLOYEE means an Employee who satisfies
the eligibility requirements to be a Member, whether or not he has elected to
become a Member.

                  SECTION 1.30 ELIGIBILITY COMPUTATION PERIOD with respect to
any Employee means: (a) the 12-consecutive-month period beginning on such
Employee's Employment Commencement Date or Employment Recommencement Date; and
(b) each Plan Year beginning after such Employee's Employment Commencement Date
or Employment Recommencement Date and before a Break in Service.

                  SECTION 1.31 EMPLOYEE means any person who is employed by the
Company.

                  SECTION 1.32 EMPLOYER STOCK FUND means an Investment Fund the
purpose of which is to invest primarily in Shares.

                  SECTION 1.33 EMPLOYMENT COMMENCEMENT DATE means the date upon
which an Employee is first credited with an Hour of Service.

                  SECTION 1.34 EMPLOYMENT RECOMMENCEMENT DATE means the date
upon which Employee is first credited with an Hour of Service after a Break in
Service.

                  SECTION 1.35 ENTRY DATE means: (a) prior to June 30, 1990, the
Effective Date and each March 1st and September 1st thereafter; (b) on and after
June 30, 1990, and prior to September 30, 1994, July 1, 1990 and each January
1st and July 1st thereafter; (c) on and after September 30, 1994, and prior to
January 1, 2001, October 1, 1994 and each January 1st, April 1st, July 1st and
October 1st thereafter; and (d) on and after January 1, 2001, the first day of
each pay period.

                  SECTION 1.36 ERISA means the Employee Retirement Income
Security Act of 1974, as amended from time to time (including the corresponding
provisions of any succeeding law).

                  SECTION 1.37 ESOP TRANSFER ACCOUNT means, for any Member who
has made an ESOP Transfer Contribution, an account established for such Member
to which are credited all of such Member's ESOP Transfer Contributions, together
with all earnings and appreciation thereon, and against which are charged any
withdrawals that may be permitted and any losses, depreciation or expenses
allocable to amounts credited to such account.

                  SECTION 1.38 ESOP TRANSFER CONTRIBUTION means, for any Member,
a direct transfer of all or any portion of such Member's account balance under
the Astoria Federal Savings and Loan Association Employee Stock Ownership Plan
that is transferred to this Plan at the election

                                       -6-

<PAGE>

of the Member pursuant to the investment diversification provisions of the
Astoria Federal Savings and Loan Association Employee Stock Ownership Plan.

                  SECTION 1.39 FAMILY MEMBER means, with respect to any person,
such person's spouse and lineal ascendants or descendants and the spouses of
such lineal ascendants or descendants.

                  SECTION 1.40 FIDUCIARIES means the Company, the Plan
Administrator, and the Trustee, but only with respect to the specific
responsibilities of each for Plan and Trust administration, all as described in
this Plan and the Trust Agreement.

                  SECTION 1.41 FIVE PERCENT OWNER means, for any Plan Year, a
person who, during such Plan Year, owned (or was considered as owning for
purposes of section 318 of the Code): (a) more than 5% of the value of all
classes of outstanding stock of the Company; or (b) stock possessing more than
5% of the combined voting power of all classes of outstanding stock of the
Company.

                  SECTION 1.42 FORFEITURES means the portion of a Member's
Company Contribution Account which is forfeited because of a Break-in-Service in
accordance with the Plan's vesting schedule.

                  SECTION 1.43 FORMER MEMBER means a person who was a Member and
whose membership in the Plan has terminated, pursuant to section 3.3.

                  SECTION 1.44 HARDSHIP means a condition described in section
11.3(b)(i).

                  SECTION 1.45      HIGHLY COMPENSATED EMPLOYEE means:

                  (a) with respect to a Plan Year beginning after December 31,
         1985 and before January 1, 1997, any Employee or person employed by an
         Affiliated Employer who:

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

                           (ii) is a member of the group consisting of the 100
                  Employees and persons employed by any Affiliated Employer who
                  receive the greatest Total Compensation for such Plan Year and
                  during such Plan Year:

                                    (A) received Total Compensation for such
                           Plan Year in excess of $75,000 (or such greater
                           amount as may be permitted under section 414(q) of
                           the Code); or

                                    (B) received Total Compensation for such
                           Plan Year in excess of both (I) $50,000 (or such
                           greater amount as may be permitted under section
                           414(q) of the Code) and (II)

                                       -7-

<PAGE>

                           the Total Compensation for such Plan Year of at least
                           80% of the Employees and persons employed by any
                           Affiliated Employer for such Plan Year; or

                                    (C) was an Officer and received Total
                           Compensation for such Plan Year in excess of 50% of
                           the amount in effect under section 415(b)(1)(A) of
                           the Code for such Plan Year; or

                           (iii) during the immediately preceding Plan Year:

                                    (A) received Total Compensation for such
                           Plan Year in excess of $75,000 (or such greater
                           amount as may be permitted under section 414(q) of
                           the Code);

                                    (B) received Total Compensation for such
                           Plan Year in excess of both (I) $50,000 (or such
                           greater amount as may be permitted under section
                           414(q) of the Code) and (II) the Total Compensation
                           for such Plan Year of at least 80% of the Employees
                           and persons employed by any Affiliated Employers for
                           such Plan Year; or

                                    (C) was an Officer and received Total
                           Compensation for such Plan Year in excess of 50% of
                           the amount in effect under section 415(b)(1)(A) of
                           the Code for such Plan Year; and

                  (b) with respect to a Plan Year beginning after December 31,
         1996, any Employee or person employed by an Affiliated Employer who:

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

                           (ii) received Total Compensation from the Employer
                  and all Affiliated Employers during the immediately preceding
                  Plan Year (A) in excess of $80,000 (or such other amount as
                  may be prescribed by the Secretary of the Treasury pursuant to
                  section 415(d) of the Code); and (B) if elected by the Plan
                  Administrator in such form and manner as the Secretary of the
                  Treasury may prescribe in excess of the Total Compensation
                  received for such preceding Plan Year by at least 80% of the
                  Employees and persons employed by Affiliated Employers.

The determination of who is a Highly Compensated Employee will be made in
accordance with section 414(q) of the Code and the regulations thereunder. For
purposes of applying any provisions of the Plan applicable to Highly Compensated
Employees, in the case of any person who is a Family Member of a Five Percent
Owner or of one of the 10 Highly Compensated Employees with the highest Total
Compensation for a Plan Year, any Total Compensation or Compensation paid to
such

                                       -8-

<PAGE>

person, as well as any contributions made by or for such person under this Plan,
shall be attributed to the Five Percent Owner or Highly Compensated Employee.

                  SECTION 1.46 HOUR OF SERVICE means, with respect to any
person:

                  (a) each hour for which such person is paid, or entitled to
         payment for the performance of duties for the Company or an Affiliated
         Employer;

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

                  (c) each hour for which back pay, irrespective of mitigation
         of damages, is either awarded or agreed to by the Company or an
         Affiliated Employer; PROVIDED, HOWEVER, that such hours have not
         previously been credited under either paragraph (a) or (b) of this
         section; and, provided, further, that not more than 501 Hours of
         Service shall be credited under paragraph (b) of this section to such
         person on account of a single continuous period during which such
         person performs no duties for the Company or an Affiliated Employer
         whether or not such period occurs in a single Plan Year. Hours under
         this paragraph (c) shall be credited to the person for the Computation
         Period or Computation Periods to which the award or agreement pertains,
         rather than the Computation Period in which the award, agreement or
         payment is made.

Anything in this section to the contrary notwithstanding, no Hours of Service
shall be credited for a payment made or due under a plan maintained solely for
the purpose of complying with applicable workmen's compensation or disability
insurance laws, or a payment which solely reimburses any person for medical or
medically-related expenses incurred by such person. With respect to an
individual employed by Long Island Bancorp, Inc. or The Long Island Savings
Bank, F.S.B. (or any of their respective subsidiaries) as of September 30, 1998
who becomes an Employee on October 1, 1998, Hours of Service recognized under
The Long Island Savings Bank, F.S.B. 401(k) Savings Plan as of September 30,
1998 for any Computation Period that includes September 30, 1998 shall be
recognized as Hours of Service for such Computation Period under the Plan.

                  SECTION 1.47 INVESTMENT FUND means such investment funds as
may be established from time to time by the Plan Administrator for the
investment of Accounts.

                  SECTION 1.48 MATERNITY AND PATERNITY LEAVE means a person's
absence from work for the Company and all Affiliated Employers: (a) by reason of
the pregnancy of such person; (b) by reason of the birth of a child of such
person; (c) by reason of the adoption of a child by such person; or (d) for
purposes of caring for a child of such person immediately following the birth of
the child or the adoption of the child by such person.

                                       -9-

<PAGE>

                  SECTION 1.49 MEMBER means any person who has satisfied the
eligibility requirements set forth in section 3.1, who has become a Member in
accordance with section 3.2, and whose membership has not terminated under
section 3.3. An Employee who has made a Rollover Contribution shall also be
deemed to be a Member, except that no contributions (other than a Rollover
Contribution) shall be made for and no Forfeitures shall be allocated to such
Employee until he has satisfied the eligibility requirements set forth in
section 3.1 and become a Member in accordance with section 3.2.

                  SECTION 1.50 NORMAL RETIREMENT DATE means the first day of the
calendar month coincident with or immediately following the Member's 65th
birthday.

                  SECTION 1.51 OFFICER means an employee who is an
administrative executive in regular and continued service with the Company or
any Affiliated Employer; PROVIDED, HOWEVER, that at no time shall more than the
lesser of (a) 50 employees of the Company and all Affiliated Employers or (b)
the greater of (i) 3 employees of the Company and all Affiliated Employers or
(ii) 10% of all employees of the Company and all Affiliated Employers be treated
as Officers. The determination of whether an employee is to be considered an
Officer shall be made in accordance with section 416(i) of the Code.

                  SECTION 1.52 PLAN means the Astoria Federal Savings and Loan
Association Incentive Savings Plan, as from time to time amended and revised.

                  SECTION 1.53 PLAN ADMINISTRATOR means the Company or any
person, committee, corporation or organization appointed pursuant to section
12.1 to perform the responsibilities of that office.

                  SECTION 1.54 PLAN YEAR means: (a) prior to March 1, 1989, the
twelve-month period beginning on March 1, 1986 and each March 1st thereafter;
(b) the period beginning on March 1, 1989 and ending December 31, 1989; and (c)
after December 31, 1989, the twelve-month period beginning on January 1, 1990
and each January 1st thereafter.

                  SECTION 1.55 PROFITS means the net income of the Company as
determined by its accountants in accordance with usual accounting practices, but
before deductions for contributions to this Plan or any other pension or
profit-sharing plan which qualifies under the requirements of the Internal
Revenue Code and before provision for state and federal income taxes. Any such
determination of Profits shall be conclusive, final and binding upon all
persons, and no inquiry shall be made into the books and records of the Company
by any person for the purpose of ascertaining the Profits.

                  SECTION 1.56 QUALIFIED DOMESTIC RELATIONS ORDER means a
Domestic Relations Order that: (a) clearly specifies (i) the name and last known
mailing address of the Member or Former Member and of each person given rights
under such Domestic Relations Order, (ii) the amount or percentages of the
Member's or Former Member's benefits under this Plan to be paid to each person
covered by such Domestic Relations Order, (iii) the number of payments or the
period to which such Domestic Relations Order applies, and (iv) the name of this
Plan; and (b) does not

                                      -10-

<PAGE>

require the payment of a benefit in a form or amount that is (i) not otherwise
provided for under the Plan, or (ii) inconsistent with a previous Qualified
Domestic Relations Order.

                  SECTION 1.57 QUALIFIED MILITARY LEAVE means with respect to
any person on any date, any service in the uniformed services of the United
States (as defined in chapter 43 of Title 38 of the United States Code)
completed prior to such date, but only if, on such date, such person is entitled
to re-employment rights with respect to the Company or any Affiliated Employer
on account of such service.

                  SECTION 1.58 RETROACTIVE COMPANY CONTRIBUTION means a Company
Contribution made with respect to a Retroactive Deferred Contribution in
accordance with section 5.3.

                  SECTION 1.59 RETROACTIVE DEFERRED CONTRIBUTION means a
Deferred Contribution made on a retroactive basis in respect of a period of
Qualified Military Service in accordance with section 4.4.

                  SECTION 1.60 RETROACTIVE SAFE HARBOR CONTRIBUTION means a Safe
Harbor Contribution made on a retroactive basis in respect of a period of
Qualified Military Service in accordance with section 5.2(b).

                  SECTION 1.61 ROLLOVER ACCOUNT means an account established for
each Employee making a Rollover Contribution to which are credited all Rollover
Contributions made by such Employee and all earnings or appreciation thereon,
and against which are charged any withdrawals that may be permitted and any
losses, depreciation or expenses allocable to amounts credited to such account.

                  SECTION 1.62 ROLLOVER CONTRIBUTION means a contribution to an
Employee's Rollover Account in the Plan of amounts of money or property received
by an Employee

                  (a) from another qualified plan or individual retirement
         account or annuity (but only to the extent that the amounts of such
         individual retirement account or annuity represent distributions from a
         qualified retirement plan, plus any earnings thereon); or

                  (b) after December 31, 2001, from any eligible state deferred
         compensation plan described in section 457 of the Code which is
         maintained by an eligible employer described in section 457(e)(1)(A) of
         the Code, or from any tax- deferred annuity described in section 403(b)
         of the Code; or

                  (c) an individual retirement account or annuity (but only to
         the extent that the amounts of such individual retirement account or
         annuity represent distributions described in section 1.59(a) or (b),
         plus any earnings thereon);

that would otherwise be included in the Employee's income for federal income tax
purposes and that may be rolled over into this Plan under the Code without
adversely affecting the qualification of this Plan.

                                      -11-

<PAGE>

                  SECTION 1.63 SAFE HARBOR ACCOUNT means an account established
for each Member to which are credited Safe Harbor Contributions, together with
all earnings and appreciation thereon, and against which are charged any
withdrawals of amounts credited to such account and losses, depreciation and
expenses allocable to amounts credited to such account.

                  SECTION 1.64 SAFE HARBOR CONTRIBUTION means an amount
contributed by the Company pursuant to section 5.2.

                  SECTION  1.65 SHARE means a share of common  stock,  par value
$.01, of Astoria Financial Corporation.

                  SECTION 1.66 TOTAL COMPENSATION with respect to any person for
any period means the total remuneration paid to such person during such period
by the Company and all Affiliated Employers which is required to be reported to
such person on a written statement under section 6041(d), 6051(a)(3) and 6052 of
the Code. In addition:

                  (a) for purposes of applying section 6.2 in Limitation Years
         beginning after December 31, 1997 and identifying those persons who are
         Highly Compensated Employees, each person's Total Compensation shall
         include; and

                  (b) for purposes of computing the Actual Deferral Percentage
         and Contribution Percentage of an Employee, each person's Total
         Compensation may, in the Plan Administrator's discretion, include;

any Deferred Contributions to this Plan, any elective deferrals (within the
meaning of section 402(g) of the Code) under any other qualified cash or
deferred arrangement described in section 401(k) of the Code and maintained by
the Company or any Affiliated Employer, any tax-deferred annuity described in
section 403(b) of the Code and maintained by the Company or any Affiliated
Employer, any salary reduction simplified employee pension plan described in
section 408(k) of the Code and maintained by the Company or any Affiliated
Employer, any salary reduction contributions under any cafeteria plan described
in section 125 of the Code and maintained by the Company or any Affiliated
Employer, for any Plan Year beginning on or after January 1, 2001, and any
salary reduction qualified transportation fringe benefits program described in
section 132(f) of the Code and maintained by the Company or any Affiliated
Employer. In no event shall a person's Total Compensation for any Plan Year
beginning after December 31, 1988 and before January 1, 1994 include any
compensation in excess of $200,000 (or such other amount as may be permitted
under section 401(a)(17) of the Code) and for any Plan Year beginning after
December 31, 1993 include any compensation in excess of $150,000 (or such other
amount as may be permitted under section 401(a)(17) of the Code). For purposes
of applying the foregoing limitation in any Plan Year beginning before January
1, 1997 to any person who is a Five Percent Owner or who is one of the 10 Highly
Compensated Employees with the highest Total Compensation (determined prior to
the application of this sentence), any Total Compensation paid to the spouse of
such person or to any lineal descendant of such person who has not attained age
19 on or before the last day of such calendar year shall be deemed to have been
paid to such person.

                  SECTION 1.67 TRUST means the legal entity created by the Trust
Agreement.

                                      -12-

<PAGE>

                  SECTION 1.68 TRUST AGREEMENT means the agreement between the
Company and the Trustee therein named or their successor(s) pursuant to which
the Trust Fund shall be held in trust.

                  SECTION 1.69 TRUST FUND means the corpus (consisting of
contributions paid over to the Trustee, and investments thereof), and all
earnings, appreciations or additions thereof and thereto, held by the Trustee(s)
under the Trust Agreement in accordance with the Plan, less any depreciation
thereof and any payments made therefrom pursuant to the Plan.

                  SECTION 1.70 TRUSTEE means the trustee(s) or any successor
trustee or trustees named in the Trust Agreement or any amendment thereto.

                  SECTION 1.71 VALUATION DATE means the last day of each
calendar month and such other dates as may, in the judgment of the Plan
Administrator, be necessary for proper administration of the Plan.

                  SECTION 1.72 VESTING COMPUTATION PERIOD with respect to any
Member means: (a) for purposes of determining the vested percentage of a Member
prior to January 1, 2001, the Plan Year; and (b) for all other purposes (i) the
12-consecutive-month period beginning on a Member's Employment Commencement Date
or Employment Recommencement.

                  SECTION 1.73 YEAR OF ELIGIBILITY SERVICE means an Eligibility
Computation Period in which an Employee completes at least 1,000 Hours of
Service. An Employee who completes at least 1,000 Hours of Service in both his
initial Eligibility Computation Period and the Eligibility Computation Period
which includes the first anniversary of his Employment Commencement Date shall
be credited with two Years of Eligibility Service. In the case of individuals
formerly employed by Oneonta Federal Savings and Loan Association, Years of
Eligibility Service shall include years of service recognized for eligibility
purposes under the Oneonta Federal Savings and Loan Association Incentive
Savings Plan as of February 28, 1988. In the case of an individual employed by
Fidelity New York F.S.B. on January 31, 1995 who becomes an employee of the
Company on February 1, 1995, Years of Eligibility Service shall include years of
service recognized for eligibility purposes under the Fidelity New York 401(k)
Flexible Retirement Plan as of January 31, 1995. In the case of an individual
employed by The Greater New York Savings Bank on September 30, 1997 who becomes
an employee of the Company on October 1, 1997, Years of Eligibility Service
shall include Years of Service recognized for eligibility purposes under The
Greater New York Savings Bank Incentive Savings Plan as of September 30, 1997.
In the case of an individual employed by Long Island Bancorp, Inc. or The Long
Island Savings Bank, F.S.B. (or any of their respective subsidiaries) on
September 30, 1998 who becomes an Employee on October 1, 1998, Years of
Eligibility Service shall include Years of Service recognized for eligibility
purposes under The Long Island Savings Bank, F.S.B. 401(k) Savings Plan.

                  SECTION 1.74 YEAR OF VESTING SERVICE means a Vesting
Computation Period in which an Employee completes at least 1,000 Hours of
Service. In the case of individuals formerly employed by Oneonta Federal Savings
and Loan Association, Years of Vesting Service shall include years of service
recognized for vesting purposes under the Oneonta Federal Savings and Loan
Association Incentive Savings Plan as of February 28, 1988. In the case of an
individual employed by Fidelity New York F.S.B. on January 31, 1995 who becomes
an employee of the Company on

                                      -13-

<PAGE>

February 1, 1995, Years of Vesting Service shall include years of service
recognized for vesting purposes under the Fidelity New York 401(k) Flexible
Retirement Plan as of January 31, 1995. In the case of an individual employed by
The Greater New York Savings Bank on September 30, 1997 who becomes an employee
of the Company on October 1, 1997: (a) Years of Vesting Service shall include
all whole years of service recognized for vesting purposes under The Greater New
York Savings Bank Incentive Savings Plan as of October 1, 1997; and (b) for the
Plan Year ending December 31, 1997, such individual shall be credited with an
additional Year of Vesting Service if he completed 1,000 or more Hours of
Service in the aggregate in such Plan Year with The Greater New York Savings
Bank, the Company and any Affiliated Employer. In the case of an individual
employed by Long Island Bancorp, Inc. or The Lang Island Savings Bank, F.S.B.
(or any of their respective subsidiaries) as of September 30, 1998 who becomes
an Employee on October 1, 1998, Years of Vesting Service shall also include
Years of Credited Service recognized for vesting purposes under The Long Island
Savings Bank, F.S.B. 401(k) Savings Plan as of September 30, 1998.

                                   ARTICLE II

                               SPECIAL SITUATIONS

                  SECTION 2.1       MILITARY SERVICE.

                  In the case of a termination of employment of any Employee for
the purpose of entering directly into Military Service, the entire period of his
absence shall be treated, for purposes of vesting and eligibility for
participation (but, except as expressly provided in this Plan to the contrary,
not for purposes of making Deferred Contributions or receiving Company
Contributions or Safe Harbor Contributions under Article V or Forfeitures under
section 8.3), as if he had worked for the Company during the period of his
absence. In the event of the re-employment of such person by the Company or any
Affiliated Employer upon application made within a period of 6 months:

                  (a) after he becomes entitled to release or discharge, if he
         has entered the armed forces, or

                  (b) after such service terminates, if he has entered other
         service defined as Military Service, or

                  (c) release from hospitalization continuing after discharge
         from the uniformed services of the United States for a period of not
         more than two years;

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

                  SECTION 2.2       MATERNITY AND PATERNITY LEAVE.

                  In the event of an Employee's absence from work in the service
of the Company and all Affiliated Employers for a period that commences on or
after the Effective Date for which the Employee is not paid or entitled to
payment by the Company and that constitutes Maternity or

                                      -14-

<PAGE>

Paternity leave, then solely for purposes of determining whether a Break in
Service has occurred, the Employee shall be credited for the period of absence
with the number of Hours of Service equal to the lesser of:

                  (a) (i) the number of Hours of Service that would have been
         credited to the Employee if he had continued working for the Company
         during the period of such absence, or (ii) if the number of Hours of
         Service prescribed under section 2.2(a)(i) cannot be determined, 8
         Hours of Service for each working day during the period of absence, or

                  (b) 501 Hours of Service.

Such credit shall be given during the Computation Period in which such absence
began, if necessary to prevent a Break in Service from occurring during such
Computation Period, and in all other cases, such credit shall be given during
the immediately following Computation Period. This section 2.2 shall not apply
unless the Employee furnishes to the Plan Administrator such information as the
Plan Administrator may reasonably require in order to establish that the
Employee's absence is one described herein and the number of working days during
such absence.

                  SECTION 2.3       LEAVE OF ABSENCE.

                  In the event of temporary absence from work in the service of
the Company for any period of two years or less for which a Member shall have
been granted a leave of absence by the Company, the entire period of his absence
shall be treated for purposes of vesting and eligibility for participation (but
not for purposes of Company Contributions or Safe Harbor Contributions under
Article V or Forfeitures under section 8.3), as if he had worked for the Company
during the period of his absence. Absence from work for a period greater than,
or failure to return to work upon the expiration of, the period of leave of
absence granted by the Company shall terminate participation in the Plan as of
the date on which such period ended. In granting leaves of absence for purposes
of the Plan, all Employees in like circumstances shall be similarly treated.

                  SECTION 2.4       FAMILY AND MEDICAL LEAVE.

                  For purposes of eligibility, vesting, Company Contributions,
Safe Harbor Contributions, Forfeitures and loans, periods of absence recognized
as family or medical leave under the federal Family and Medical Leave Act of
1993 shall be treated in the manner required by such law and the regulations
promulgated thereunder.

                                      -15-

<PAGE>

                                   ARTICLE III

                             MEMBERSHIP IN THE PLAN

                  SECTION 3.1       ELIGIBILITY FOR PARTICIPATION.

                  (a) Only Eligible Employees may be or become Members of the
Plan. An Employee shall be an Eligible Employee if he:

                  (i) has completed one Year of Eligibility Service;

                  (ii) is at least twenty-one (21) years of age; and

                  (iii) is not an Employee excluded under section 3.1(b);

PROVIDED, HOWEVER, that each person who participates in the Oneonta Federal
Savings and Loan Association Incentive Savings Plan on February 28, 1988 shall
be an Eligible Employee on March 1, 1988 if he is an Employee on such date.

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

                  (i) is an Employee who is compensated principally on a daily,
         fee or retainer basis; or

                  (ii) is employed on a temporary, seasonal or other basis that
         does not contemplate regular, continued employment; or

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

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

                  (v) is a "leased employee" within the meaning of section
         414(n) of the Code; or

                  (vi) is a non-resident alien; or

                  (vii) is eligible to participate in the Fidelity New York
         F.S.B. 401(k) Flexible Retirement Plan; or

                  (viii) is eligible to participate in The Greater New York
         Savings Bank Incentive Savings Plan; or

                                      -16-

<PAGE>

                  (ix) is eligible to participate in The Long Island Savings
         Bank 401(k) Savings Plan at any time after September 30, 1998 and
         before the effective date of the merger of The Long Island Savings Bank
         401(k) Savings Plan into this Plan, provided that this exclusion shall
         apply only during the period of such eligibility, or

                  (x) is eligible to participate in the Infoserve Corporation
         401(k) Savings Plan at any time after September 30, 1997 and before the
         effective date of the merger of the Infoserve Corporation 401(k)
         Savings Plan into this Plan, provided that this exclusion shall apply
         only during the period of such eligibility.

                  SECTION 3.2       COMMENCEMENT OF MEMBERSHIP.

                  An Employee who is an Eligible Employee may become a Member:

                  (a) on any Entry Date which occurs while he is an Eligible
         Employee;

                  (b) in the case of an Employee who was an Eligible Employee on
         September 1, 1990, on September 1, 1990;

by completing and filing a form prescribed by the Plan Administrator at such
time and in such manner as the Plan Administrator may establish; PROVIDED,
HOWEVER, that any individual who participated in the Oneonta Federal Savings and
Loan Association Incentive Savings Plan on February, 28, 1988 and who is an
Eligible Employee on March 1, 1988 may become a Member on March 1, 1988 or any
later Entry Date which occurs while he is an Eligible Employer, PROVIDED,
FURTHER, that each person who participates in The Long Island Savings Bank
401(k) Savings Plan immediately prior to the effective date of the merger of The
Long Island Savings Bank 401(k) Savings Plan into this Plan shall become a
Member automatically on such effective date.

                  SECTION 3.3       TERMINATION OF MEMBERSHIP.

                  Membership in the Plan shall cease upon termination of
employment with the Company, death or Disability, or becoming an Employee who is
excluded under section 3.1(b), or the occurrence of a Break in Service.

                  SECTION 3.4       MEMBERSHIP AFTER A BREAK IN SERVICE.

                  If any person who was a Member ceases to be a Member, he may
again become a Member as of:

                  (a) in cases of termination of employment followed by
         re-employment: (i) his Employment Recommencement Date, if he is then an
         Eligible Employee and if he was a Member at the time if his termination
         of employment; and (ii) any Entry Date coincident with or following his
         Employment Recommencement Date on which he is an Eligible Employee.

                                      -17-

<PAGE>

                  (b) in all other cases: (i) the earliest date on which he
         again becomes an Eligible Employee, if he was a Member when he ceased
         to be an Eligible Employee, and (ii) any Entry Date coincident with or
         following the date on which he again becomes an Eligible Employee.

                                   ARTICLE IV

                         ELECTIVE DEFERRED CONTRIBUTIONS

                  SECTION 4.1       DEFERRED CONTRIBUTIONS.

                  Subject to the limitations of Article VI, upon enrollment, a
Member shall elect to make Deferred Contributions at a rate not to exceed 10%
(before January 1, 2002) and 15% (after December 31, 2002) of his Compensation.
Deferred Contributions shall be made by payroll deductions. The first such
Deferred Contribution shall be withheld for the first full payroll period which
begins after membership commences. A Member's Deferred Contributions shall be
transferred and paid by the Company to the Trustee and credited to the Member's
Deferred Contribution Account.

                  SECTION 4.2       CHANGES IN RATE OF DEFERRED CONTRIBUTIONS.

                  A Member may, subject to the limitations of section 4.1, make
an election to increase, decrease or discontinue the rate of his Deferred
Contributions by notice given in such form and manner as may be prescribed by
the Plan Administrator. The Plan Administrator shall establish, as a matter of
policy, any limitations which may apply to the frequency at which changes in the
rate of deferral may be made.

                  SECTION 4.3       ROLLOVER CONTRIBUTIONS.

                  An Employee (other than a "leased employee" within the meaning
of section 414(n) of the Code), defined as any person who is not an employee of
the Company and who provides services to the Company pursuant to an agreement
between the Company and any other person, has performed services for the Company
(or for the Company and related persons) on a substantially full time basis for
a period fo at least one year, and such services are performed under the
Company's primary direction and control), whether or not he is a Member, may
contribute a Rollover Contribution to the Plan by delivery of such contribution
to the Plan Administrator; PROVIDED, HOWEVER, that such Employee shall submit a
written certification, in form and substance satisfactory to the Plan
Administrator that the contribution qualifies as a Rollover Contribution. The
Plan Administrator shall be entitled to rely on such certification and shall
accept the contribution on behalf of the Plan. An Employee's Rollover
Contributions shall be credited to such Employee's Rollover Account.

                  SECTION 4.4       RETROACTIVE DEFERRED CONTRIBUTIONS.

                  An individual who is re-employed by the Company after December
12, 1994, and following completion of a period of Military Service shall have
the right to elect to make Retroactive Deferred Contributions if such Military
Service constituted Qualifying Military Service. Such an election shall be made
in such form and manner as the Plan Administrator may prescribe. Such
Retroactive Deferred Contributions shall be made during the period beginning on
the date of re- employment and extending for a period that is three times as
long as the individual's period of

                                      -18-

<PAGE>

Qualified Military Service (or until the fifth anniversary of the date of
re-employment if earlier) and shall not exceed the excess of:

                  (a) the maximum amount of Deferred Contributions which the
         individual could have made during the period of Qualified Military
         Service if he had remained in the service of the Company earning
         Compensation and Total Compensation at the annual rates in effect
         immediately prior to the commencement of the Qualified Military Leave
         (or, if such rates are not reasonably certain, at an annual rate equal
         to the actual Compensation and Total Compensation, respectively, paid
         to him for the 12-month period immediately preceding the Qualified
         Military Service), over

                  (b) the aggregate elective deferrals (within the meaning of
         section 402(g) of the Code) actually made by such individual during the
         period of Qualified Military Service.

Such Deferred Contributions shall be deemed made with respect to the earliest
portion of the period of Qualified Military Service possible consistent with the
limitations on the amount of Deferred Contributions that could have been made
during such period by such individual. No adjustment shall be made for any
earnings that would have accrued between the date such Retroactive Deferred
Contributions are actually delivered to the Trustee for investment and the date
when such Retroactive Deferred Contributions are deemed made.

                  SECTION 4.5       CATCH-UP DEFERRED CONTRIBUTIONS.

                  (a) Beginning on such date after December 31, 2001 as the
         Company's Director of Human Resources shall specify, a Member whose
         50th birthday has occurred before the first day of a calendar year, or
         whose 50th birthday is scheduled to occur during such calendar year,
         shall be eligible to make Catch-up Deferred Contributions at any time
         while a Member during such calendar year in an amount not to exceed the
         lesser of:

                  (i) the applicable Catch-up Contribution Limit determined
         under section 4.6(b); and

                  (ii) the excess (if any) of the Member's Total Compensation
         for such Plan Year over the aggregate of all other Deferred
         Contributions (not including Catch-up Deferred Contributions and
         Retroactive Deferred Contributions) made by the Member for such Plan
         Year.

Such Catch-up Deferred Contributions shall be made by payroll deduction
authorized by the Member at such times and in such manner as the Plan
Administrator may prescribe.

                  (b) The Catch-up Deferred Contribution Limit for any Plan Year
that begins after December 31, 2001 shall be (i) $0, in the case of a Member who
will not attain age 50 on or before the last day of the calendar year in
question and (ii) in all other cases, the amount determined in accordance with
the following Table:

                                      -19-

<PAGE>

      CALENDAR              CATCH-UP DEFERRED
        YEAR                CONTRIBUTION LIMIT
      --------              ------------------
        2002                      $1,000
        2003                      $2,000
        2004                      $3,000
        2005                      $4,000
        2006                      $5,000
     after 2006                   $5,000

In the case of any calendar year beginning after December 31, 2006, the Catch-up
Contribution Limit shall be adjusted to account for changes in the cost of
living, relative to a base period consisting of the calendar quarter that begins
on July 1, 2005, in the manner prescribed by section 415(d) of the Code, and the
adjusted limit resulting therefrom, if not a multiple of $500, shall be rounded
down to the nearest $500.

                  SECTION 4.6       ESOP TRANSFER CONTRIBUTIONS.

                  An Employee (whether or not he is a Member) may make one or
more ESOP Transfer Contributions to the Plan. An Employee's ESOP Transfer
Contributions shall be credited to the Employee's ESOP Transfer Account.

                  SECTION 4.7       DELIVERY OF CONTRIBUTIONS FOR INVESTMENT.

                  Any Deferred Contributions or Rollover Contributions made by
or on behalf of an Employee during any month shall be delivered to the Trustee
for investment as soon as practicable after they are made, and in any event
within fifteen (15) business days after the end of the calendar month in which
delivered to the Plan Administrator (in the case of Rollover Contributions) or
withheld from payroll checks (in the case of Deferred Contributions).

                  SECTION 4.8       SUSPENSION OF CONTRIBUTIONS.

                  A Member's Deferred Contributions will automatically be
suspended during an authorized leave of absence (including military leave other
than a training period of 15 days or less, or during a period of temporary
layoff, or while a Member is on Disability) during which an Employee does not
earn Compensation. A Member may voluntarily suspend Deferred Contributions as of
any date. Any such voluntary suspension of Deferred Contributions must be
submitted in such form and manner prescribed by the Plan Administrator, prior to
the date of suspension. In order to resume Deferred Contributions, a Member must
file a notice in such form and manner prescribed by the Plan Administrator, as
of any date. Notwithstanding the foregoing, a Member whose Deferred
Contributions are suspended shall nevertheless be permitted to make Catch-up
Deferred Contributions during the suspension period.

                                      -20-

<PAGE>

                                    ARTICLE V

                          CONTRIBUTIONS BY THE COMPANY

                  SECTION 5.1       COMPANY CONTRIBUTIONS.

                  Subject to the limitations of Article VI, the Company shall
contribute to the Plan, for each Member for each payroll period, in an amount
equal to:

                  (a) before January 1, 1994, 50% of the Member's Deferred
         Contributions not in excess of 6 % of the Member's Compensation for
         such payroll period; and

                  (b) after December 31, 1994, such percentage (if any) of the
         Member's Deferred Contributions not in excess of 6% of the Member's
         Deferred Contributions as the Company, in its discretion, may
         determine. Company Contributions shall be credited to the Company
         Contribution Accounts of the Members for whom they are made.

                  SECTION 5.2       SAFE HARBOR CONTRIBUTIONS.

                  (a) The Company may, in its discretion, and subject to the
limitations of Article VI, make Safe Harbor Contributions for a Plan Year to the
Safe Harbor Accounts of those Members who are (a) not Highly Compensated
Employees, and (b) Members on the last day of the Plan Year, in an amount
sufficient to comply with the requirements of sections 6.2, 6.3. and 6.4. Such
Safe Harbor Contributions shall be allocated in the proportion that the
Compensation of each Member who is entitled to such contributions for such Plan
Year bears to the Compensation of all such Members for such Plan Year. Safe
Harbor Contributions shall be credited to the Safe Harbor Accounts of the
Members for whom they are made.

                  (b) Upon the re-employment by the Company or any Affiliated
Employer of any individual following a period of Qualified Military Service, the
Company shall make a Retroactive Safe Harbor Contribution for the Account of
such individual for any Plan Year ending during such period of Qualified
Military Service for which (i) the individual would have been considered an
Employee other than a Highly Compensated Employee; (ii) the individual would
have been a Member; and (iii) the Company made Safe Harbor Contributions for
other Members who were not Highly Compensated Employees. The amount of such
Retroactive Safe Harbor Contribution for any Plan Year shall be the same
percentage of such individual's Compensation for such Plan Year as the Safe
Harbor Contributions actually made for other Members for such Plan Year. For
this purpose it shall be assumed that the individual remained employed by the
Company during his period of Qualified Military Service earning Compensation and
Total Compensation at the annual rates in effect immediately prior to the
commencement of the Qualified Military Leave (or, if such rates are not
reasonably certain, at an annual rate equal to the actual Compensation and Total
Compensation, respectively, paid to him for the 12-month period immediately
preceding the Qualified Military Service). No adjustments shall be made for
earnings that would have accrued if Safe Harbor Contributions had actually been
made during the period of Qualified Military Service.

                                      -21-

<PAGE>

                  SECTION 5.3       RETROACTIVE COMPANY CONTRIBUTIONS.

                  For any month during which any Member makes Retroactive
Deferred Contributions, the Company shall make a Retroactive Company
Contribution if and to the extent required by this section 5.3. A Retroactive
Company Contribution shall be required with respect to a Retroactive Deferred
Contribution to the extent that Company Contributions were actually made with
respect to Deferred Contributions made during the period of Qualified Military
Service to which the Retroactive Deferred Contribution relates. The Retroactive
Company Contribution shall be in the same amount as the Company Contribution
that would have been made if the Retroactive Deferred Contribution had actually
been made during the period of Qualified Military Service. No adjustments shall
be made for earnings that would have accrued if Retroactive Deferred
Contributions and related Company Contributions had actually been made during
the period of Qualified Military Service.

                  SECTION 5.4       DELIVERY OF CONTRIBUTIONS FOR INVESTMENT.

                  Company Contributions will be delivered to the Trustee with
reasonable promptness after the total of the Deferred Contributions made by the
Members has been accurately and finally determined, and in any event will be so
paid by the end of the succeeding month. Safe Harbor Contributions for a Plan
Year will be delivered to the Trustee no later than the last day of the Plan
Year immediately following the Plan Year for which they are made.

                                   ARTICLE VI

                          LIMITATIONS ON CONTRIBUTIONS

                  SECTION 6.1     LIMITATIONS ON DEFERRED CONTRIBUTIONS CREDITED
                                  TO MEMBERS' DEFERRED CONTRIBUTION ACCOUNTS.

                  (a) The Deferred Contributions credited to the Deferred
         Contribution Account of a Member for a calendar year that begins after
         December 31, 1986 shall not exceed:

                  (i) for calendar years beginning before January 1, 2002,
         $7,000 (or such higher amount as may be permitted under section
         402(g)(5) of the Code); and

                  (ii) for calendar years beginning after December 31, 2001, the
         amount determined under the following Table:

      CALENDAR                   DEFERRED
        YEAR                CONTRIBUTION LIMIT
        ----                ------------------
        2002                     $11,000
        2003                     $12,000

                                      -22-

<PAGE>

      Calendar                   Deferred
        2004                     $13,000
        2005                     $14,000
        2006                     $15,000
     after 2006                  $15,000

         In the case of any calendar year beginning after December 31, 2006, the
         limit shall be adjusted to account for changes in the cost of living,
         relative to a base period consisting of the calendar quarter that
         begins on July 1, 2005, in the manner prescribed by section 415(d) of
         the Code, and the adjusted limit resulting therefrom, if not a multiple
         of $500, shall be rounded down to the nearest $500.

         In the event that the Deferred Contributions credited to the Deferred
         Contribution Account of a Member for a calendar year exceed the
         applicable limit determined under section 6.1(a), the amount of such
         excess Deferred Contributions, plus the amount of any income (and minus
         the amount of any losses) attributable thereto, shall be distributed to
         such Member no later than April 15th of the calendar year following the
         calendar year in which such Deferred Contributions were made.

                  (b) In addition to the limitations of section 6.1(a), the sum
of the Deferred Contributions credited to the Deferred Contribution Account of a
Member for a calendar year, when added to the amount of any other elective
deferrals by such Member for such calendar year under any other qualified cash
or deferred arrangement under section 401(k) of the Code, any qualified annuity
plan under section 403 of the Code or any simplified employee pension plan under
section 408(k) of the Code, shall not exceed the applicable limit determined
under section 6.1(a). If and to the extent necessary to comply with the
limitations of this section 6.1(b) for a calendar year, an Employee may, by
notice to the Plan Administrator given in such form and manner as the Plan
Administrator may prescribe, direct that all or a portion of his Deferred
Contributions credited to his Deferred Contribution Account for such calendar
year, plus the amount of any income (and minus the amount of any losses)
attributable thereto, be distributed to him. Such a notice shall be given not
later than March 1st of the calendar year following the calendar year to which
the notice relates, and the distribution pursuant to such notice shall be made
not later than April 15th of such following calendar year.

                  (c) For purposes of this section 6.1, any Retroactive Deferred
Contributions shall be treated as Deferred Contributions for the calendar year
included in the period of Qualified Military Service for which they are made,
and not for the calendar year during which they are made, and Catch-up Deferred
Contributions shall not be taken into account.

                                      -23-

<PAGE>

                  SECTION 6.2      LIMITATIONS ON CONTRIBUTIONS AND FORFEITURES.

                  (a) Notwithstanding any other provisions of the Plan, no
         amount shall be allocated to a Member's Accounts for any Limitation
         Year to the extent that such allocation would result in an Annual
         Addition of an amount exceeding:

                  (i) for Limitation Years beginning before January 1, 2002, the
         lesser of: (A) $30,000 (or such other amount as is permissible under
         section 415(c)(1)(A) of the Code ), or (B) twenty-five percent (25%) of
         the Member's Total Compensation paid during such Limitation Year; and

                  (ii) for Limitation Years beginning after December 31, 2001,
         the lesser of : (A) $40,000 (or such other amount as is permissible
         under section 415(c)(1)(A) of the Code ), or (B) one hundred percent
         (100%) of the Member's Total Compensation paid during such Limitation
         Year.

                  (b) For Limitation Years ending prior to January 1, 2000, in
         the case of a Participant who may be entitled to benefits under the
         Bank's Retirement Plan for Employees or any other qualified defined
         benefit plan maintained by the Bank or any Related Employer, such
         Participant's Annual Additions under this Plan shall, in addition to
         the limitations provided in section 6.1(a), be further limited so that
         the sum of the Participant's Defined Contribution Plan Fraction and his
         Defined Benefit Plan Fraction does not exceed 1.0; PROVIDED, HOWEVER,
         that for any Limitation Year ending prior to January 1, 1983, the sum
         of his Defined Contribution Plan Fraction and his Defined Benefit Plan
         Fraction shall not exceed 1.4; and PROVIDED, FURTHER, that the
         limitations of this section 6.1 (b) shall apply only if and to the
         extent that benefits under the Bank's Retirement Plan for Employees or
         any other qualified defined benefit plan maintained by the Bank or any
         Related Employer are not limited so that such sum is not exceeded.

                  (c) For purposes of this section 6.1, the following special
         definitions shall apply:

                  (i) ANNUAL ADDITIONS mean, with respect to this Plan, the sum
         of the following amounts allocated on behalf of a Participant for a
         Limitation Year:

                           (A) all Employer Contributions under this Plan and
                  all employer contributions under any other qualified defined
                  contribution plan maintained by the Company or any Related
                  Employer; plus

                           (B) all of a Member's Deferred Contributions under
                  this Plan and elective deferrals within the meaning of
                  sections 401(k), 408(k) and 403(b) of the Code made under any
                  qualified defined contribution plan, salary reduction
                  simplified employee pension plan or tax-deferred annuity
                  maintained by the Company or any Related Employer; plus

                           (C) solely for the purpose of the limitations imposed
                  under sections 6.1(a)(i)(B) and (ii) (B), contributions
                  allocated in Limitation Years beginning after March 31, 1984
                  to an individual medical benefit account

                                      -24-

<PAGE>

                  under a pension or annuity plan, excluding contributions
                  allocated after separation from service (within the meaning of
                  section 401(h) or 419(A)(f)(2))

         PROVIDED, HOWEVER, that Retroactive Deferred Contributions, Retroactive
         Company Contributions and Retroactive Safe Harbor Contributions shall
         be treated as Annual Additions for the Limitation Year for which they
         are made and not for the Limitation Year during which they are made,
         and Catch-up Deferred Contributions shall not be counted as Annual
         Additions.

                  (ii) DEFINED BENEFIT PLAN FRACTION means, for any Member for
         any Limitation Year, a fraction (A) the numerator of which is the
         Projected Annual Benefit of the Member (determined as of the end of
         such Limitation Year) under any qualified defined benefit plan
         maintained by the Company or any Related Employer (whether or not
         terminated), and (B) the denominator of which is as follows: (I) for
         Limitation Years ending prior to January 1, 1983, the lesser of (1) the
         dollar limitation in effect under section 415(b)(1)(A) of the Code for
         such Limitation Year, or (2) the amount which may be taken into account
         under section 415(b)(1)(B) of the Code with respect to such Member for
         such Limitation Year; and (II) in all other cases, the lesser of (1)
         (except as provided in section 14.8 for a Top Heavy Plan Year) the
         product of 1.25 multiplied by the dollar limitation in effect under
         section 415(b)(1)(A) of the Code for such Limitation Year, or (2) the
         product of 1.4 multiplied by the amount which may be taken into account
         under section 415(b)(1)(B) of the Code with respect to such Member for
         such Limitation Year.

                  (iii) DEFINED CONTRIBUTION PLAN FRACTION means, for any Member
         for any Limitation Year, a fraction (A) the numerator of which is the
         sum of such Member's Annual Additions (determined as of the end of such
         Limitation Year) under this Plan and any other qualified defined
         contribution plan maintained by the Company or any Related Employer for
         the current and all prior Limitation Years (whether or not terminated),
         and (B) the denominator of which is as follows: (I) for Limitation
         Years ending prior to January 1, 1983, the sum of the lesser of the
         following amounts for such Limitation Year and for each prior
         Limitation Year during which such Member was employed by the Company or
         any Related Employer: (1) the dollar limitation in effect under section
         415(c)(1)(A) of the Code for such Limitation Year (without regard to
         section 415(c)(6) of the Code) or (2) the amount which may be taken
         into account under section 415(c)(1)(B) of the Code with respect to
         such Member for such Limitation Year; and (II) in all other cases, the
         sum of the lesser of the following amounts for such Limitation Year and
         for each prior Limitation Year during which such Member was employed by
         the Company or any Related Employer: (1) (except as provided in section
         14.8 for a Top Heavy Plan Year) the product of 1.25 multiplied by the
         dollar limitation in effect under section 415(c)(1)(A) of the Code for
         such Limitation Year (determined without regard to section 415(c)(6) of
         the Code) or (2) the product of 1.4 multiplied by the amount which may
         be taken into account under section 415(c)(1)(B) of the Code (or
         section 415(c)(7) of the Code, if applicable) with respect to such
         Member for such Limitation Year; PROVIDED, HOWEVER, that the

                                      -25-

<PAGE>

         Plan Administrator may, at his election, adopt the transition rule set
         forth in section 415(e)(6) of the Code in making the computation set
         forth in this section 6.2(c)(iii). If the sum of a Member's Defined
         Benefit Plan Fraction and Defined Contribution Plan Fraction exceeded
         1.0 as of December 31, 1982, then such Member's Defined Contribution
         Plan Fraction shall be determined under regulations to be prescribed by
         the Secretary of the Treasury so that the sum of the fractions does not
         exceed 1.0.

                  (iv) LIMITATION YEAR means the calendar year; PROVIDED,
         HOWEVER, that if the Company changes the Limitation Year, the new
         Limitation Year shall begin on a date within the Limitation Year in
         which the amendment is made.

                  (v) PROJECTED ANNUAL BENEFIT means a Member's annual
         retirement benefit (adjusted to the actuarial equivalent of a straight
         life annuity if expressed in a form other than a straight life or
         qualified joint and survivor annuity) under any and all qualified
         defined benefit plans maintained by the Company or any Related
         Employer, assuming that the Member will continue employment until the
         later of current age or normal retirement age under such plans and that
         the Member's compensation for the Limitation Year and all other
         relevant factors used to determine benefits under such plans will
         remain constant for all future Limitation Years.

                  (vi) RELATED EMPLOYER means all members of a controlled group
         of corporations, as defined in section 414(b) of the Code, as modified
         by section 415(h) of the Code, all commonly controlled trades or
         businesses, as defined in section 414(c) of the Code, as modified by
         section 415(h) of the Code, all affiliated service groups, as defined
         in section 414(m) of the Code, of which the Company is a member, as
         well as any leasing organization (as defined in section 414(n) of the
         Code) to the extent that any of its employees are required pursuant to
         section 414(n) of the Code to be treated as employees of the Company;
         and any other entity that is required to be aggregated with the Company
         pursuant to regulations under section 414(o) of the Code.

                  (d) (i) For purposes of satisfying the limitations of sections
         6.2(a) and (b), a Member's Annual Additions to this Plan shall be
         reduced prior to reducing his Annual Additions under the Company's
         Employee Stock Ownership Plan. For purposes of satisfying the
         limitations of section 6.2(b), a Member's Projected Annual Benefit
         shall be reduced before reducing his Annual Additions.

                  (ii) To the extent that a Member's Annual Additions to this
         Plan must be reduced, such reduction shall be applied first to
         Forfeitures (by reallocating such Forfeitures among other Members);
         second, if necessary, to Company Contributions (which shall be used to
         reduce future contributions by the Company); third, if necessary, to
         Safe Harbor Contributions (which shall be used to reduce future
         contributions by the Company); and fourth, if necessary, to Deferred
         Contributions (which shall be returned to the Member).

                  (iii) In the event that any Forfeitures to be reallocated
         pursuant to this section 6.2(d) cannot be allocated to any of the other
         Members in the Plan without exceeding the limitations

                                      -26-

<PAGE>

of this section 6.2 for the Limitation Year, such Forfeitures shall be held in a
suspense account and reallocated in the following Limitation Year. Any
contributions by the Company removed from a Member's Annual Additions pursuant
to this section 6.2(d) shall be held in a suspense account until they are used
to reduce contributions by the Company in the following Limitation Year. Amounts
held in a suspense account shall not share in the earnings and losses of the
Trust Fund.

                  (e) Prior to determining a Member's actual Total Compensation
for a Limitation Year, the Plan Administrator may determine the limitations
under this section 6.2 for a Member on the basis of a reasonable estimation of
the Member's Total Compensation for the Limitation Year that is uniformly
determined for all Members who are similarly situated. As soon as it is
administratively feasible after the end of the Limitation Year, the limitations
of this section 6.2 shall be determined on the basis of the Member's actual
Total Compensation for the Limitation Year.

                  SECTION 6.3    LIMITATIONS ON DEFERRED CONTRIBUTIONS BY HIGHLY
                                 COMPENSATED EMPLOYEES.

         (a) No Deferred Contributions shall be credited to a Member's Deferred
Contribution Account if and to the extent that the crediting of such a
contribution would, for any Plan Year, result in an Actual Deferral Percentage
for the Company's Eligible Employees who are Highly Compensated Employees which
would exceed:

                  (i) for Plan Years, that begin before January 1, 1997:

                           (A) if the excess of the Average Actual Deferral
                  Percentage of such Highly Compensated Employees over that of
                  all other Eligible Employees is two percentage points or less,
                  the Average Actual Deferral Percentage of such other Eligible
                  Employees multiplied by 2; or

                           (B) in all other cases, the Average Actual Deferral
                  Percentage of those Eligible Employees who are not Highly
                  Compensated Employees multiplied by 1.25, and

                  (ii) for Plan Years that begin after December 31, 1996, except
         to the extent that the Plan Administrator elects, in such form and
         manner and subject to such terms and conditions as the Secretary of the
         Treasury may prescribe, to apply section 6.3(a)(i):

                           (A) if the Average Actual Deferral Percentage for the
                  Eligible Employees who are not Highly Compensated Employees is
                  less than two percent (2%) for the immediately preceding Plan
                  Year, the product of such Average Actual Deferral Percentage
                  multiplied by 2; and

                           (B) if the Average Actual Deferral Percentage for the
                  Eligible Employees who are not Highly Compensated Employees is
                  eight percent (8%) or less but two percent (2%) or more for
                  the immediately preceding

                                      -27-

<PAGE>

                  Plan  Year,  the  sum  of  such  Average   Actual   Deferral
                  Percentage plus two (2) percentage points; and

                           (C) in all other cases, the product of 1.25
                  multiplied by the Average Actual Deferral Percentage for the
                  Eligible Employees who were not Highly Compensated Employees,
                  all as determined for the immediately preceding Plan Year.

                  (b) If the amount of Deferred Contributions made to the Plan
causes the limitations of section 6.3(a) to be exceeded, the Company may make
Safe Harbor Contributions pursuant to section 5.2 in an amount sufficient to
produce compliance with such limitations. If the Company does not make Safe
Harbor Contributions, an amount of Deferred Contributions equal to the amount
necessary to produce compliance with such limitations, plus the amount of any
income (and minus the amount of any losses) attributable thereto, shall be
removed from the Deferred Contribution Accounts of the Highly Compensated
Employees and disposed of as hereinafter provided. The amount necessary to
comply with such limitations shall be derived by establishing the highest Actual
Deferral Percentage for each Highly Compensated Employee that would present
compliance with such limitations. For this purpose, the Actual Deferral
Percentage of Highly Compensated Employees with the highest Actual Deferral
Percentage shall be reduced, until such Actual Deferral Percentage is reduced to
be equal to the next highest Actual Deferral Percentage of a Highly Compensated
Employee. The procedure described in the preceding sentence shall then be
repeated until the Actual Deferral Percentages have been reduced to the minimum
extent necessary. The aggregate dollar amount of Deferred Contributions that
would have to be removed from the Deferral Accounts of Highly Compensated
Employees to achieve these reductions shall be the amount which shall be removed
and disposed of as provided in section 6.2(c).

                  (c) (i) For Plan Years beginning before January 1, 1997, the
amount determined under section 6.3(b) and the amount of Company Contributions
made under Article V to the Company Contribution Accounts of such Highly
Compensated Employees with respect to such Deferred Contributions, shall be
removed from the Accounts of such Highly Compensated Employees not later than
the last day of the immediately following Plan Year. The amount removed shall be
applied first to the Deferred Contribution Account or Deferred Contribution
Accounts of the Highly Compensated Employee or Highly Compensated Employees with
the highest Actual Deferral Percentage for the Plan Year, until such Actual
Deferral Percentage is reduced to be equal to the next highest Actual Deferral
Percentage of a Highly Compensated Employee. The procedure described in the
preceding sentence shall then be repeated until the entire required amount has
been removed. The entire amount removed from the Deferred Contribution Account
and the vested amount removed from the Company Contribution Account of any
Highly Compensated Employee pursuant to this section 6.3(c) shall be distributed
to the Highly Compensated Employee. Any amount removed from the Company
Contribution Account which is not vested shall be treated as a Forfeiture.

                  (ii) For Plan Years beginning after December 31, 1996, the
amount determined under section 63(b) and the amount of Company Contributions
made under Article V to the Company Contribution Accounts of such Highly
Compensated Employees with respect to such Deferred Contributions, shall be
removed from the Accounts of such Highly Compensated Employees not later than
the last day of the immediately following Plan Year. The amount removed

                                      -28-

<PAGE>

shall be applied first to the Deferred Contribution Account or Deferred
Contribution Accounts of Highly Compensated Employee or Highly Compensated
Employees with the highest dollar amount of Deferred Contributions for the Plan
Year, until such dollar amount is reduced to be equal to the next highest dollar
amount of a Highly Compensated Employee. The procedure described in the
preceding sentence shall then be repeated until the entire required amount has
been removed. The entire amount removed from the Deferred Contribution Account
and the vested amount removed from the Company Contribution Account of any
Highly Compensated Employee pursuant to this section 6.3(c) shall be distributed
to the Highly Compensated Employee. Any amount removed from the Company
Contribution Account which is not vested shall be treated as a Forfeiture.

                  (d) For Plan Years beginning before January 1, 1997, the
Actual Deferral Percentage of an Eligible Employee who is a Five Percent Owner
or who is one of the ten Highly Compensated Employees receiving the highest
Total Compensation shall be the greater of the Actual Deferral Percentage
determined by combining (i) the Deferred Contributions and Total Compensation of
such Eligible Employee and all of his Family Members who are both Eligible
Employees and Highly Compensated Employees, or (ii) the Deferred Contributions
and Total Compensation of such Eligible Employee and all of his Family Members
who are Eligible Employees. The Family Members of such Eligible Employees shall
be disregarded as separate Employees in determining the Actual Deferral
Percentage both for Eligible Employees who are not Highly Compensated Employees
and for Eligible Employees who are Highly Compensated Employees.

                  SECTION 6.4       LIMITATIONS ON COMPANY CONTRIBUTIONS.

                  (a) For Plan Years that begin after December 31, 1986, the
Average Contribution Percentage of the Highly Compensated Employees who are
Eligible Employees shall not exceed:

                  (i) for Plan Years that begin before January 1, 1997:

                           (A) if the excess of the Average Contribution
                  Percentage of such Highly Compensated Employees over that of
                  all other Eligible Employees is 2 percentage points or less,
                  the Average Contribution Percentage of such other Eligible
                  Employees multiplied by 2; or

                           (B) in all other cases, the Average Contribution
                  Percentage of those Eligible Employees who are not Highly
                  Compensated Employees multiplied by 1.25; and

                  (ii) for Plan Years that begin after December 31, 1996, unless
the Plan Administrator elects, in such form and manner and subject to such terms
and conditions as the Secretary of the Treasury may prescribe, to apply section
6.4(a)(i):

                           (A) if the Average Contribution Percentage for
                  Eligible Employees who were not Highly Compensated Employees
                  was less than two percent (2%) for the immediately preceding
                  Plan year, the product of such Average Contribution Percentage
                  multiplied by 2; and

                                      -29-

<PAGE>

                           (B) if the Average Contribution Percentage for
                  Eligible Employees who were not Highly Compensated Employees
                  was at least two percent (2%) but not more than eight percent
                  (8%) for the immediately preceding Plan Year, the sum of such
                  Average Contribution Percentage plus two (2) percentage
                  points; and

                           (C) in all other cases, the product of 1.25
                  multiplied by the Average Contribution Percentage for Eligible
                  Employees who were not Highly Compensated Employees for the
                  immediately preceding Plan Year.

                  (b) (i) If the amount of Company Contributions causes the
limitations of section 6.4(a) to be exceeded, the Company, in its discretion,
may make Safe Harbor Contributions for the benefit of Members who are not Highly
Compensated Employees in an amount sufficient to produce compliance with such
limitations. If the Company does not choose to make Safe Harbor Contributions,
an amount of Company Contributions equal to the amount necessary to produce
compliance with such limitations, plus the amount of any income (and minus the
amount of any losses) attributable thereto, shall be removed from the Company
Contribution Accounts of such Highly Compensated Employees not later than the
last day of the immediately following Plan Year in the order of priority
prescribed in section 6.4(b)(ii). The amount necessary to comply with such
limitations shall be derived by establishing the highest Contribution Percentage
for each Highly Compensated Employee that would permit compliance with such
limitations. For this purpose the Contribution Percentages of Highly Compensated
Employees with the highest Contribution Percentages shall be reduced until such
Contribution Percentage is reduced to equal to the next highest Contribution
Percentage of a Highly Compensated Employee. The procedure described in the
preceding sentence shall then be repeated until the Contribution Percentages
have been reduced to the minimum extent necessary. The aggregate dollar amount
of Company Contributions that would have to be removed from the Company
Contribution Accounts of Highly Compensated Employees to achieve these
reductions shall be the amount which shall be removed and disposed of as
provided in section 6.3(b)(ii).

                  (ii) (A) For Plan Years beginning before January 1, 1997, the
amount determined under section 6.4(b)(i) shall be applied first to the Account
of the Highly Compensated Employee or Highly Compensated Employees with the
highest Contribution Percentage for the Plan Year until such Contribution
Percentage is reduced to be equal to the next highest Contribution Percentage of
a Highly Compensated Employee. The procedure described in the preceding sentence
shall then be repeated until the entire required amount has been removed. The
entire vested amount removed from the Accounts of a Highly Compensated Employee
shall be returned to the Highly Compensated Employee. Any amount removed which
is not vested shall be treated as a Forfeiture.

                  (B) For Plan Years beginning after December 31, 1996, the
amount determined under section 6.4(b)(i) shall be applied first to the Account
of Highly Compensated Employee or Highly Compensated Employees with the highest
dollar amount of Company Contributions for the Plan Year until such Contribution
Percentage is reduced to be equal to the next highest dollar amount of a Highly
Compensated Employee. The procedure described in the preceding sentence shall
then be repeated until the entire required amount has been removed. The entire
vested amount removed

                                      -30-

<PAGE>

from the Accounts of a Highly Compensated Employee shall be returned to the
Highly Compensated Employee. Any amount removed which is not vested shall be
treated as a Forfeiture.

                  (c) For Plan Years beginning before January 1, 1997, the
Contribution Percentage of an Eligible Employee who is a Five Percent Owner or
who is one of the 10 Highly Compensated Employees receiving the highest Total
Compensation shall be the greater of the Contribution Percentage determined by
combining (i) the Company Contributions and Total Compensation of such Eligible
Employee and all of his Family Members who are both Eligible Employees and
Highly Compensated Employees, or (ii) the Company Contributions and Total
Compensation of such Eligible Employee and all of his Family Members who are
Eligible Employees. The Family Members of such Eligible Employees shall be
disregarded as separate Employees in determining the Contribution Percentage
both for Eligible Employees who are not Highly Compensated Employees and for
Eligible Employees who are Highly Compensated Employees.

                  (d) In determining the Contribution Percentage of a Member who
is a Highly Compensated Employee, the Company Contributions and Compensation of
such Member shall include Company Contributions made on behalf of, and the
Compensation of any individual who is a Family Member, and Family Members shall
be disregarded as separate Employees in determining the Contribution Percentage
both for Members who are Highly Compensated Employees and for all other Eligible
Employees.

                  SECTION 6.5       AGGREGATE LIMITATION ON ACTUAL DEFERRAL
                                    PERCENTAGE AND CONTRIBUTION PERCENTAGE.

                  (a) In addition to the limitations of sections 6.3 (a) and
         6.4(a), for any Plan Year beginning after December 31, 1988 and before
         January 1, 1992 (or, if later, the date which is 60 days after the
         publication by the Internal Revenue Service of final regulations under
         section 401(m)(9)(A) of the Code), the sum of the Average Actual
         Deferral Percentage of the Highly Compensated Employees who are
         Eligible Employees and the Actual Average Contribution Percentage of
         such Highly Compensated Employees, determined after any distributions
         made pursuant to sections 6.3(b) or 6.4(b) for such Plan Year, shall
         not exceed the greater of:

                  (i)(A) 1.25 multiplied by the greater of (1) the Average
         Actual Deferral Percentage of those Eligible Employees who are not
         Highly Compensated Employees, or (B) the Actual Average Contribution
         Percentage of such Eligible Employees; plus

                  (ii) 2 percentage points above the lesser of (I) the Average
         Actual Deferral Percentage of those Eligible Employees who are not
         Highly Compensated Employees or (II) the Actual Average Contribution
         Percentage of such Eligible Employees; PROVIDED, HOWEVER, that the
         amount determined in this section 6.5(a)(i)(B) shall not exceed the
         lesser of the amount under section 6.3(c)(i)(A)(I) or (II) multiplied
         by 2.

For any Plan Year beginning after December 31, 1991 (or, if later, the date
which is 59 days after the publication by the Internal Revenue Service of final
regulations under section 401(m)(9)(A) of the Code) and before January 1, 2002,
the sum of the Average Actual Deferral Percentage of the

                                      -31-

<PAGE>

Highly Compensated Employees who are Eligible Employees and the Actual Average
Contribution Percentage of such Highly Compensated Employees, determined after
any distributions made pursuant to sections 6.3(b) or 6.4(b) for such Plan Year,
shall not exceed the sum of the amounts determined under sections 6.5(a)(i)(A)
and (B).

                  (b) If, for any Plan Year to which section 6.5(a) is
applicable, the limitations of section 6.5(a) are exceeded, an amount of the
Company Contributions credited to such Highly Compensated Employees plus the
amount of income (and minus the amount of any losses) attributable thereto shall
be removed from the appropriate Accounts of such Highly Compensated Employees no
later than the last day of the immediately following Plan Year. The amount to be
so removed shall be determined and distributed in the manner set forth in
section 6.4(b), except that references to section 6.4(a) therein shall be read
as references to section 6.5(b).

                                   ARTICLE VII

                            SAFE HARBOR CONTRIBUTIONS

                  SECTION 7.1       ALLOCATION OF SAFE HARBOR CONTRIBUTIONS.

                  Safe Harbor Contributions, if any, for the Plan Year shall be
allocated as of the last day of such Plan Year to the appropriate Accounts of
each Member entitled thereto in the proportion that his Compensation for such
Plan Year (or portion thereof during which he was a Member) bears to the
aggregate Compensation of all such Members entitled thereto for such Plan Year.
The Members who shall be entitled to an allocation of Safe Harbor Contributions
and Forfeitures for a Plan Year shall be those Employees who are not Highly
Compensated Employees and who are Members on the last day of the Plan Year. No
amount of Safe Harbor Contributions shall be allocated to the Accounts of a
Former Member even though he had been a Member during part of the Plan Year for
which the allocation of such Safe Harbor Contributions is made.

                                  ARTICLE VIII

                                     VESTING

                  SECTION 8.1       VESTING SCHEDULE.

                  A Member shall always be fully vested in the balance to his
credit, if any, in his Deferred Contribution Account, his Safe Harbor Account
and his Rollover Account. Except as otherwise provided in this Article VIII, a
Member shall become vested in the balance to his credit, if any, in his Company
Contribution Account determined in accordance with the following schedule:

         (i) in the case of Members with credit for three or more Years of
Vesting Service on December 31, 2000.

                                      -32-

<PAGE>

           YEARS OF                   VESTING
       VESTING SERVICE              PERCENTAGE
       ---------------              ----------

Less than 2                           0%
2 but less than 3                     20%
3 but less than 4                     40%
4 but less than 5                     60%
5 or more                             100%

           (ii) in the case of Members with credit for less than three Years of
Vesting Service on December 31, 2000

           YEARS OF                   VESTING
       VESTING SERVICE              PERCENTAGE
       ---------------              ----------

Less than 5                             0.5
5 or more                              100%

For purposes of this section 8.1, an individual's Years of Vesting Service shall
not include any Years of Vesting Service completed prior to a Break in Service
unless he completes one Year of Eligibility Service following the Break in
Service and one or more of the following conditions are satisfied:

                  (a) before the Break in Service the Member had a vested
         interest in his Company Contribution Account which was not distributed
         to him; or

                  (b) the number of consecutive Breaks in Service is less than
         or equal to the greater of five (5) or the number of Years of Vesting
         Service prior to the Breaks in Service; or

                  (c) the Break in Service is due solely to a period of
         temporary layoff.

                  SECTION 8.2       VESTING UPON DEATH OR ATTAINING AGE 65.

         The entire balance credited to a Member's Accounts, to the extent not
otherwise vested, shall become fully vested upon his attaining age 65 while an
Employee or, if earlier, on the date he terminates employment with the Company
by reason of death.

                  SECTION 8.3       FORFEITURES.

                  (a) Upon the termination of employment of a Member or Former
Member, that portion, if any, of his Company Contribution Account that is not
vested shall be held in his Company Contribution Account until five (5)
consecutive Breaks in Service occur, at which time such non- vested portion
shall be forfeited and disposed of as a Forfeiture.

                                      -33-

<PAGE>

                  (b) Any amounts forfeited by reason of failure to vest
pursuant to this Article VIII shall be used by the Company to reduce Plan
expenses.

                  (c) If a Former Member receives a distribution from his
Company Contribution Account after his termination of employment but before he
incurs five (5) consecutive Breaks in Service, then immediately prior to the
first such distribution, the balances credited to his Company Contribution
Account, if any, shall be placed in separate accounts, and the vested interest
of such Former Member in each such separate account at any relevant time shall
be an amount "X" determined by applying the formula:

                          X = P [AB +(Rx D)] -(Rx D)

where "P" is the vested percentage at the relevant time, "AB" is the separate
account balance at the relevant time, "R" is the ratio of the separate account
balance at the relevant time to the separate account balance immediately after
the distribution, and "D" is the amount of the distribution. If such Former
Member later incurs five (5) consecutive Breaks in Service, he shall be entitled
to the amount X, in each such separate account, and the balance shall be
forfeited and disposed of as a Forfeiture, as of the end of the Plan Year in
which the five (5) consecutive Breaks in Service occur. If such Former Member
again performs an Hour of Service before incurring five (5) consecutive Breaks
in Service, his separate account or accounts shall be maintained; if his Company
Contribution Account and separate accounts subsequently become 100% vested, the
separate account attributable to his Company Contribution Account shall be
merged into the Employee's Company Contribution Account. An Employee's Years of
Vesting Service subsequent to five (5) consecutive Breaks in Service shall be
disregarded for purposes of determining his vested interest in his Company
Contribution Account (or separate accounts) attributable to Company
Contributions that accrued prior to such five (5) consecutive Breaks in Service.

                  (d) If a Former Member receives a distribution of all or any
portion of the balance credited to his Company Contribution Account on or before
the last day of the second Plan Year to end following the member's termination
of employment with the Company, the portion (if any) of the balance credited to
his Company Contribution Account which is not vested shall thereupon be
forfeited. Such Former Member may not thereafter become vested in such forfeited
amount unless he resumes employment with the Company prior to the occurrence of
five (5) consecutive Breaks in Service and repays the full amount distributed to
him (without adjustment for earnings or losses) before the later of:

                           (i) the fifth anniversary of the date on which he
                  resumes employment with the Company; and

                           (ii) the earliest date on which five (5) consecutive
                  Breaks in Service occur after the distribution.

Upon such repayment, the entire amount forfeited (without adjustment for
earnings or losses) shall be restored to the Member's Company Contribution
Account.

                                      -34-

<PAGE>

                  SECTION 8.4       VESTING OF AN EXCLUDED EMPLOYEE.

                  In the event of a termination of membership of a Member for
becoming an Employee excluded under section 3.1(b), his Accounts shall be
retained in the Plan, shall continue to vest in accordance with section 8.1 and
shall be paid to him pursuant to the provisions of Article XI.

                                   ARTICLE IX

                                   PLAN ASSETS

                  SECTION 9.1       CONTROL OF ASSETS.

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

                  SECTION 9.2       THE INVESTMENT FUNDS.

                  The investments of the Plan shall consist of promissory notes
evidencing loans obtained pursuant to section 11.2 and such Investment Funds as
the Plan Administrator may, from time to time, establish and maintain. The
investments of any Investment Funds may include or consist of, without
limitation: units of interest in an investment company registered under the
Investment Company Act of 1940, as amended; participation interests in a
commingled, collective or common trust fund, provided that participation in such
trust fund is restricted to trusts which are exempt from federal income taxation
under section 501 (a) of the Code; participation interests in a pooled separate
account maintained by an insurance company authorized to do business in more
than one state; or a portfolio of investments selected by the Plan Administrator
or by a professional investment manager selected by the Plan Administrator.
Notwithstanding anything in this Plan or the investment guidelines or criteria
established for an Investment Fund, to provide for liquidity requirements and
the temporary management of funds pending investment or disbursement, all or
part of the investments of any Investment Fund may consist of short-term
obligations of, or guaranteed by, the United States Government, short-term
commercial obligations, and bank deposit accounts, whether or not
interest-bearing.

                  SECTION 9.3       INVESTMENT DIRECTIONS.

                  Each Member shall elect, in increments of 20% (before November
1, 2000) or 1% (after October 31, 2000), the manner in which the Deferred
Contributions, Company Contributions, Safe Harbor Contributions and Rollover
Contributions credited to his Accounts shall be invested by completing and
filing an investment direction form with his initial election to participate. To
the extent that a Member shall fail to make such an election or shall make an
election which is

                                      -35-

<PAGE>

ineffective, investments shall be made in such uniform and nondiscriminatory
manner as the Plan Administrator may prescribe.

                  SECTION 9.4       CHANGE OF INVESTMENT DIRECTIONS.

                  A Member may elect, at anytime and in such manner as the Plan
Administrator may prescribe, to change his investment directions, in increments
of 20% (before November 1, 2000) or 1% (after October 31, 2000), with respect to
Deferred Contributions, Company Contributions, Safe Harbor Contributions and
Rollover Contributions to be made thereafter. Elections made under this section
9.4 shall be given effect as soon as practicable; PROVIDED, HOWEVER, that the
Plan Administrator may require that such an election be made up to ten (10)
calendar days prior to the date on which it will take effect and may defer
giving effect to such an election until the first day of the first calendar
month to begin at least (10) calendar days after the election is filed.

                  SECTION 9.5       TRANSFERS AMONG INVESTMENT FUNDS.

                  A Member or Former Member, as well as the Beneficiary of a
deceased Former Member, may elect, at anytime, in such manner as the Plan
Administrator may prescribe, that any portion of his Accounts invested in one
Investment Fund be liquidated and the proceeds reinvested for him in one or more
of the other Investment Funds in increments of 20% (before November 1, 2000) or
1% (after October 31, 2000). Elections under this section 9.5 shall be given
effect as soon as practicable; PROVIDED, HOWEVER, that the Plan Administrator
may require that such an election be made up to ten (10) calendar days prior to
the date on which it will take effect and may defer giving effect to such an
election until the first day of the first calendar month to begin at least (10)
calendar days after the election is filed. Investment transfers by a Corporate
Insider shall be subject to the limitations of section 10.2.

                  SECTION 9.6       TRANSFER OF ASSETS IN MERGER WITH THE LONG
                                    ISLAND SAVINGS BANK 401(K) SAVINGS PLAN.

                  Effective as of effective date of the appointment of CG Trust
Company as successor trustee for the Plan, the merger of The Long Island Savings
Bank 401(k) Savings Plan into the Plan, Member or Beneficiary whose Accounts are
transferred to CG Trust Company may elect, in increments of 1%, the manner in
which his Accounts initially shall be invested by following such procedures as
may be prescribed by the Plan Administrator. To the extent that a Member or
Beneficiary shall fail to make such an election or shall make an election which
is ineffective, his account shall be automatically invested in the options made
available by CG Trust Company for the Plan that most closely correspond to the
manner in which the Accounts were invested immediately prior to such transfer.

                  SECTION 9.7       VALUATION OF ACCOUNTS.

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

                                      -36-

<PAGE>

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

                  SECTION 9.8       STATEMENTS OF ACCOUNT.

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

                  SECTION 9.9      ADMINISTRATION TO COMPLY WITH SECTION 404(C).

                  This Plan is intended to be a plan described in section 404(c)
of ERISA and the Plan Administrator shall interpret and administer the Plan
consistent with this intent.

                  SECTION 9.10      PASS-THROUGH RIGHTS.

                  No Member, Former Member or Beneficiary of a deceased Former
Member shall have the right to exercise the voting rights, tender rights or any
other incidents of ownership associated with the investments held in his
Account, except to the extent provided in Article X with respect to the Employer
Stock Fund.

                  SECTION 9.11      FIDUCIARY OBLIGATION TO IMPLEMENT
                                    INSTRUCTIONS.

                  The Plan Administrator shall not be obligated to implement
investment instructions by Members, Former Members and Beneficiaries of deceased
Former Members which the Plan Administrator believes would (a) result in a
prohibited transaction described in section 406 of ERISA or section 4975 of the
Code; or (b) generate income that would be taxable to the Plan.

                                   ARTICLE X

                       INVESTMENTS IN EMPLOYER STOCK FUND

                  SECTION 10.1      IN GENERAL.

                  The provisions of this Article X shall apply to the Employer
Stock Fund and to any Member, Former Member or Beneficiary who has an interest
in the Employer Stock Fund.

                  SECTION 10.2      RESTRICTIONS ON INVESTMENTS BY CORPORATE
                                    INSIDERS.

                  Investment directions pursuant to section 9.3, investment
direction changes pursuant to section 9.4, transfers among investment funds
pursuant to section 9.5, withdrawals during

                                      -37-

<PAGE>

employment pursuant to section 11.3, distributions pursuant to section 11.4 and
loans pursuant to section 11.2 shall be subject to the following restrictions:

                  (a) Any transfer among investment funds that results in an
         increase in the portion of a Corporate Insider's Accounts that is
         invested in the Employer Stock Fund shall be given effect only if
         effected pursuant to an election made at least six months after the
         most recent prior election under this Plan or any other employee
         benefit plan of the Company or any affiliate of the Company that
         resulted in a Discretionary Transaction that constituted a disposition
         beneficial ownership of Shares;

                  (b) Any transfer among investment funds that results in a
         decrease in the portion of a Corporate Insider's Accounts that is
         invested in the Employer Stock Fund shall be given effect only if
         effected pursuant to an election made at least six months after the
         most recent prior election under this Plan or any other employee
         benefit plan of the Company or any affiliate of the Company that
         resulted in a Discretionary Transaction that constituted an acquisition
         of beneficial ownership of Shares;

                  (c) Any loan pursuant to section 11.2 that is funded in whole
         or in part through a disposition of any portion of the Corporate
         Insider's interest in the Employer Stock Fund shall be made only if
         effected pursuant to an election made at least six months after the
         most recent prior election under this Plan or any other employee
         benefit plan of the Company or any affiliate of the Company that
         resulted in a Discretionary Transaction that constituted an acquisition
         of beneficial ownership Shares; and

                  (d) Any cash distribution from a Corporate Insider's Accounts
         under the Plan (whether a withdrawal during service, a distribution
         following termination of service or other type of distributions that
         does not constitute a loan pursuant to section 11.4) shall be made only
         if: (i) effected pursuant to an election made at least six months after
         the most recent prior election under this Plan or any other employee
         benefit plan of the Company or any affiliate of the Company that
         resulted in a Discretionary Transaction that constituted an acquisition
         of Shares, or (ii) (A) not effected at the volition of the Corporate
         Insider's, or (B) effected in connection with the Corporate Insider's
         death, disability, retirement or termination of employment, or (C)
         required to be made available to the Corporate Insider pursuant to any
         applicable requirement of the Code, or (D) effected pursuant to a
         Domestic Relations Order.

The restrictions set forth in this section 10.2 are intended to comply with the
requirements of Rule l6b-3 promulgated by the Securities and Exchange Commission
and shall be interpreted, applied and modified, in the discretion of the Plan
Administrator, to give effect to such intention.

                                      -38-

<PAGE>

                  SECTION 10.3      COMPLIANCE WITH SECURITIES LAWS.

                  To the extent that the Plan Administrator may determine
necessary, appropriate or advisable for the purpose of securing compliance with
applicable federal, state or local laws, rules or regulations applicable to
trading in Shares, the Plan Administrator may restrict the making or
implementation of investment or transfer directions by any individual with
respect to the Employer Stock Fund to those periods of time when such individual
would, under the Company's securities trading policy, be permitted to buy or
sell Shares directly for his own account. The Plan Administrator may refuse to
implement any such direction that would result in a transaction that would be
prohibited under such policy if engaged in outside of the Plan.

                  SECTION 10.4      VOTING RIGHTS

                  Each person with an interest in the Employer Stock Fund shall
have the right to participate confidentially in the exercise of voting rights
appurtenant to Shares held in the Employer Stock Fund; PROVIDED, HOWEVER, that
such person has an interest in the Employer Stock Fund as of the most recent
Valuation Date coincident with or preceding the applicable record date for which
records are available. Such participation shall be achieved by completing and
filing a direction in the form and manner prescribed by the Plan Administrator.
The inspector of elections, the Trustee or such other person designated by the
Plan Administrator shall tabulate the directions given on a strictly
confidential basis, and shall provide the Plan Administrator with only the final
results of the tabulation. The final results of the tabulation shall be followed
by the Plan Administrator in directing the Trustee as to the manner in which
such voting rights shall be exercised. As to each matter in which the holders of
Shares are entitled to vote, a number of affirmative votes equal to the product
of:

                  (a) the total number of Shares then held in the Employer Stock
         Fund as of the applicable record date; and

                  (b) a fraction, the numerator of which is the aggregate value
         (as of the Valuation Date coincident with or immediately preceding the
         applicable record date) of the interests in the Employer Stock Fund of
         all persons directing that an affirmative vote be cast, and the
         denominator of which is the aggregate value (as of the Valuation Date
         coincident with or immediately preceding the applicable record date) of
         the interests in the Employer Stock Fund of all persons directing that
         an affirmative vote or a negative vote be cast;

shall be cast. A number of negative votes equal to the excess of the total
number of Shares held in the Employer Stock Fund as of the applicable record
date, over the designated number of affirmative votes, shall be cast. The Plan
Administrator shall furnish, or cause to be furnished, to each person with an
interest in the Employer Stock Fund, all annual reports, proxy materials and
other information known to have been furnished by the issuer of Shares or by any
proxy solicitor, to the holders of Shares.

                                      -39-

<PAGE>

                  SECTION 10.5      TENDER  RIGHTS.

                  Each person with an interest in the Employer Stock Fund shall
have the right to participate confidentially in the response to a tender offer,
or to any other offer, made to the holders of Shares generally, to purchase,
exchange, redeem or otherwise transfer Shares; PROVIDED, HOWEVER, that such
person had an interest in the Employer Stock Fund as of the Valuation Date
coincident with or immediately preceding the first day for delivering Shares or
otherwise responding to such tender or other offer. Such participation shall be
achieved by completing and filing a direction in the form and manner prescribed
by the Plan Administrator. The inspector of elections, the Trustee or such other
person designated by the Plan Administrator shall tabulate the directions given
on a strictly confidential basis, and shall provide the Plan Administrator with
only the final results of the tabulation. The final results of the tabulation
shall be followed by the Plan Administrator in directing the Trustee as to the
number of Shares to be delivered. On the last day for delivering Shares or
otherwise responding to such a tender or other offer, a number of Shares equal
to the product of:

                  (a) the total number of Shares then held in the Employer Stock
         Fund; and

                  (b) a fraction, the numerator of which is the aggregate value
         (as of the Valuation Date coincident with or immediately preceding the
         first day of delivering Shares or otherwise responding to such tender
         or other offer) of the interests in the Employer Stock Fund of all
         persons directing that Shares be delivered in response to such tender
         or other offer, and the denominator of which is the aggregate value (as
         of the Valuation Date coincident with or immediately preceding the
         first day for delivering Shares or otherwise responding to such tender
         or other offer) of the interests in the Employer Stock Fund of all
         persons directing that Shares be delivered or that the delivery of
         Shares be withheld;

shall be delivered in response to such tender or other offer. Delivery of the
remaining Shares then held in the Employer Stock Fund shall be withheld. The
Plan Administrator shall furnish, or cause to be furnished, to each Member whose
Account is invested in whole or in part in the Employer Stock Fund, all
information concerning such tender or other offer furnished by the issuer of
Shares, or information furnished by or on behalf of the person making such
tender or other offer.

                  SECTION 10.6      APPRAISAL RIGHTS.

                  Each person with an interest in the Employer Stock Fund shall
have the right to participate confidentially in the exercise of dissent and
appraisal rights appurtenant to Shares held in the Employer Stock Fund;
PROVIDED, HOWEVER, that such person has an interest in the Employer Stock Fund
as of the most recent Valuation Date coincident with or preceding the applicable
record date for which records are available. Such participation shall be
achieved by completing and filing a direction in the form and manner prescribed
by the Plan Administrator. The inspector of elections, the Trustee or such other
person designated by the Plan Administrator shall tabulate the directions given
on a strictly confidential basis, and shall provide the Plan Administrator with
only the final results of the tabulation. The final results of the tabulation
shall be followed by the Plan Administrator in directing the Trustee as to the
manner in which such dissent and appraisal rights

                                      -40-

<PAGE>

shall be exercised. As to each matter giving rise to dissent and appraisal
rights, the Plan Administrator shall direct the Trustee to exercise such rights
as to a number of Shares equal to:

                  (a) the total number of Shares then held in the Employer Stock
         Fund as of the applicable record date; and

                  (b) a fraction, the numerator of which is the aggregate value
         (as of the Valuation Date coincident with or immediately preceding the
         applicable record date) of the interests in the Employer Stock Fund of
         all persons directing that dissent and appraisal rights be exercised be
         cast, and the denominator of which is the aggregate value (as of the
         Valuation Date coincident with or immediately preceding the applicable
         record date) of the entirety of the Employer Stock Fund.

The Trustee shall not exercise dissent and appraisal rights with respect to the
remainder of the Shares held in the Employer Stock Fund. The Plan Administrator
shall furnish, or cause to be furnished, to each person with an interest in the
Employer Stock Fund, all annual reports, proxy materials and other information
known to have been furnished by the issuer of Shares or by any proxy solicitor,
to the holders of Shares with respect to availability, and consequences of
exercise, of dissent and appraisal rights.

                                   ARTICLE XI

                             DISTRIBUTIONS AND LOANS

                  SECTION 11.1      IN GENERAL.

                  A Member's vested interest in his Accounts shall be paid only
at the times, to the extent, in the manner and to the persons provided in this
Article XI.

                  SECTION 11.2      LOANS.

                  (a) To the extent permitted under and subject to the terms and
conditions of this section 11.2, an individual may borrow from his Accounts;
PROVIDED, HOWEVER, that the individual is a Member at the time the loan is made.

                  (b) The maximum loan permitted shall be:

                                    (i) if no loan has been outstanding during
                           the one year period ending on the day before the date
                           of the loan, the lesser of (A) 50% of the vested
                           portion of the Member's Accounts, or (B) $50,000; and

                                    (ii) if another loan has been outstanding
                           during the one year period ending on the day before
                           the date of the loan, the amount of any second loan,
                           when added to the outstanding balance of all other

                                      -41-

<PAGE>

                           loans from the plan, shall not exceed the lesser of
                           (A) 50% of the vested portion of the Member's
                           Accounts or (B) $50,000, reduced by the excess of the
                           highest outstanding balance of loans to such
                           individual under the Plan on any day during the one
                           year period ending on the day before the date of the
                           loan over the outstanding balance of loans from the
                           Plan on the day the second loan is made. Beginning
                           January 1, 2004, if the Member has a loan outstanding
                           under the Plan, he shall be permitted to refinance
                           that loan. A refinancing shall involve the
                           replacement of an existing loan with a new
                           replacement loan. A loan refinancing shall be subject
                           to the following terms and conditions:

                                            (I) If the replacement loan provides
                                    for a repayment schedule with respect to the
                                    outstanding principal balance of the
                                    existing loan that is being refinanced that
                                    is less rapid than the loan it replaces,
                                    then (1) the entire replacement loan must be
                                    repaid no less rapidly than in equal
                                    quarterly installments of principal and
                                    interest over a maximum period of five (5)
                                    or fifteen (15) years, as applicable and (2)
                                    the sum of the replacement loan plus the
                                    unpaid balance of all loans outstanding
                                    under the Plan on the date of the
                                    transaction (including the existing loan
                                    that is being replaced) shall not exceed the
                                    lesser of (a) 50% of the vested portion of
                                    the Member's Accounts, or (b) $50,000,
                                    reduced by the highest aggregate outstanding
                                    principal balance on all other loans to such
                                    individual under the Plan on any day during
                                    the one year period ending on the day before
                                    the date of the loan;

                                            (II) In all other cases, (1) the
                                    amount by which the principal balance of the
                                    replacement loan exceeds the outstanding
                                    principal balance of the existing loan that
                                    is being replaced must be repaid no less
                                    rapidly than in equal quarterly installments
                                    of principal and interest over a maximum
                                    period of five (5) or fifteen (15) years, as
                                    applicable and (2)the sum of the replacement
                                    loan plus the unpaid balance of all loans
                                    outstanding under the Plan on the date of
                                    the transaction (excluding the existing loan
                                    is being replaced) shall not exceed the
                                    lesser of (a) 50% of the vested portion of
                                    the Member's Accounts, or (b) $50,000,
                                    reduced by the highest aggregate outstanding
                                    principal balance on all other loans to such
                                    individual under the Plan on any day during
                                    the one year period ending on the day before
                                    the date of the loan.

         The minimum loan permitted shall be $1,000, unless the Plan
         Administrator shall establish a lesser minimum amount in a particular
         case or as a matter of policy;

                                      -42-

<PAGE>

         provided that all similarly situated individuals shall be treated
         similarly. No more than 2 loans shall be outstanding to any individual
         at any time.

                  (c) In addition to such rules and regulations as the Company
         adopts, all loans shall comply with the following terms and conditions:

                  (i) The period of repayment for any loan shall be arrived at
         by mutual agreement between the Company and the borrower, but such
         period in no event shall exceed 5 years (except if the loan is used to
         acquire any dwelling unit that within a reasonable time is to be used
         as the principal residence of the borrower, in which case a Member may
         have a term of up to 15 years). On or after January 1, 2004, an
         outstanding loan may not be repaid and a subsequent loan obtained in
         such a way as to effectively allow for a period of repayment of more
         than 5 years (15 years if the loan is used to acquire any dwelling unit
         that within a reasonable time is to be used as the principal residence
         of the borrower).

                  (ii) The borrower shall execute a promissory note for the
         amount of the loan (including interest), payable to the order of the
         Trustee and, as collateral security therefor, shall pledge to the
         Trustee and grant the Trustee a security interest in his vested Account
         balance.

                  (iii) Each loan shall bear interest at the prevailing
         commercial rate, which shall be determined by the Plan Administrator
         based upon market conditions for loans of similar duration and quality.

                  (iv) To the extent permitted by applicable law, the Plan
         Administrator may require, as a condition of approving a loan, that the
         borrower make payments thereon by payroll deduction.

                  (d) Funds to extend a loan shall be obtained by liquidating
         all or a portion of the borrower's interest in such Investment Funds as
         the borrower may specify. In exchange therefor, the borrower's
         promissory note shall be held as a special investment of his Accounts.
         All payments of principal and interest shall be reinvested in the
         Investment Funds for the borrower's Accounts.

                  (e) Payments of interest and principal on a loan shall be made
         in substantially level installments, at least quarterly, in such
         amounts that the loan will be repaid over the term of the loan;
         PROVIDED, HOWEVER, that the Plan Administrator may, at the request of
         the borrower, suspend all payments of principal and interest otherwise
         due during a period of service in the uniformed services of the United
         States (within the meaning of chapter 43 of Title 38 of the United
         States Code). In such event, except as may be required by applicable
         law, the period of repayment of the loan shall be extended to the
         maximum period of repayment as permitted by section 11.2(c)(i) plus a
         period equal in length to the period of the suspension, and loan
         payments shall be resumed promptly at the conclusion of the suspension
         period with the loan repaid thereafter by amortization in substantially
         level installments over the extended period. During the period of
         suspension, interest shall accrue at the lesser of (i) the prevailing
         commercial rate as determined under section

                                      -43-

<PAGE>

11.2(c)(iii), or (ii) 6% compounded annually or such other rate specified under
the Soldiers' and Sailors' Civil Relief Act of 1942, or its successor acts.

                  (f) A borrower may prepay his loan on any Valuation Date,
provided he pays the full amount of the loan plus all interest accrued and
unpaid thereon. Subject to such other terms and conditions as may be established
from time to time by the Plan Administrator, a borrower may prepay a portion of
his loan on any Valuation Date. The minimum prepayment will be equal to one
installment payment or the remainder of the loan, whichever is less, unless the
Plan Administrator shall establish a different amount in a particular case, or
as a matter of policy.

                  (g) Upon default by a borrower in any of the terms of a loan
under this section 11.2, or if the employment of a Member terminates when a loan
is outstanding to him under this section 11.2, the loan will, at the option of
the Plan Administrator, become immediately due and payable. In such case, if the
Member's employment has been terminated or if the Plan Administrator has tried
unsuccessfully to collect the debt through judicial proceedings, then the Plan
Administrator may charge the unpaid balance thereon against the borrower's
vested interest in his Accounts; PROVIDED, HOWEVER, that the Plan Administrator
shall not charge such unpaid loan against a borrower's Accounts until, and then
only to the extent that, a borrower is entitled to elect a distribution under
this Article XI. Notwithstanding the foregoing, in the event that a borrower
fails to make a payment of principal or interest when due, unless the terms of
the documents governing the loan provide otherwise, the entire principal amount
of the loan plus accrued interest shall, for federal income tax purposes, be
deemed distributed to the borrower on the last business day of the calendar
quarter that includes the earlier of (i) the last day of any grace period
established under the documents governing the loan or (ii) the last day of- the
calendar quarter following the calendar quarter in which the required payment
was due. Such deemed distribution shall not relieve the borrower of his
repayment obligation unless the amount thereof is charged against the borrower's
vested interest in his Accounts. The interest that accrues after the date of the
deemed distribution shall not give rise to a further deemed distribution. During
the period following a deemed distribution in which all or any portion of the
deemed distribution has not been charged against the borrower's vested interest
in his Accounts, the Plan Administrator, as a condition of approving a
subsequent loan, may require either (i) that the borrower provide adequate
collateral security in addition to his vested Account balance, or (ii) that the
borrower enter into an enforceable agreement providing for repayment of the loan
by payroll withholding. If the Plan Administrator determines at any time prior
to repayment of the subsequent loan that the borrower has failed to provide
adequate collateral security at the request of the Plan Administrator pursuant
to this section 11.2(g) and has failed to make payments on the loan by payroll
deduction, the amount then outstanding under the subsequent loan shall be deemed
distributed to the borrower in accordance with the terms of this section
11.2(g).

                  (h) Notwithstanding the foregoing, any loan made to a
participant in The Long Island Savings Bank 401(k) Savings Plan which is
outstanding as of the effective date for the merger of The Long Island Savings
Bank 401(k) Savings Plan into the Plan and which met the terms of The Long
Island Savings Bank 401(k) Savings Plan when the loan was made shall be treated
as a loan meeting the requirements of Article XI hereof; PROVIDED, HOWEVER, that
any modification in the terms of such a loan or new loan made to such a person
must meet the requirements of Article XI at the time modified or made.

                                      -44-

<PAGE>

                  SECTION 11.3      WITHDRAWALS DURING EMPLOYMENT.

                  (a) Each Member or Former Member shall be entitled, subject to
         the restrictions of section 11.2 (applicable in the case of a loan to a
         Member or Former Member), to withdraw in cash:

                  (i) if, as of the date of the withdrawal, he will have
         attained age 59 1/2 all or any portion of the balance credited to his
         Deferred Contribution Account, plus, if applicable, his Rollover
         Account and ESOP Transfer Account and, if he is 100% vested, the
         remaining balance credited to his Account; and

                  (ii) if, as of the date of the withdrawal, section 11.3(a)(i)
         does not apply but a Hardship (as determined under section 11.3(b)(i))
         has occurred, an amount necessary to alleviate the Hardship (as
         determined under section 11.3(b)(ii)) but in no event more than the sum
         of (A) the amount of Deferred Contributions made by the Member and not
         previously distributed (or the value thereof, if less), plus (B) the
         entire balance credited to his Rollover Account and Transfer Account,
         plus (C) if he is 100% vested, the entire remaining balance credited to
         his Account.

                  (b)(i) For purposes of section 11.3(a)(ii), a Hardship shall
         have occurred with respect to a Member or Former Member if the Member
         or Former Member has a need for funds:

                  (A) to pay medical expenses (within the meaning of section
         213(d) of the Code) of the Member or Former Member or his spouse or
         dependents (within the meaning section 152 of the Code); or

                  (B) to pay tuition costs for the next year of post-secondary
         education for the Member or Former Member or his spouse or dependents
         (within the meaning of section 152 of the Code); or

                  (C) to pay the expenses (excluding mortgage payments) of
         purchasing the Member's or Former Member's principal residence; or

                  (D) to prevent the eviction of the Member or Former Member
         from his principal residence or to prevent foreclosure on the mortgage
         of the Member's or Former Member's principal residence; or

                  (E) to be used in such other circumstances as the Commissioner
         of Internal Revenue shall determine to qualify as a presumptive
         immediate and heavy financial need.

                  (ii) For purposes of section 11.3(a)(ii)(B) a withdrawal from
         a Member's or Former Member's Deferred Contribution Account or Company
         Contribution Account shall be deemed necessary to alleviate a Hardship
         if either:

                                      -45-

<PAGE>

                  (A) the Member or Former Member certifies, in a written
         certification on which the Plan Administrator may reasonably rely, that
         the Hardship cannot be relieved through another reasonable method,
         including (but not limited to):

                           (I) through reimbursement or compensation by
                  insurance or otherwise; or

                           (II) by reasonable liquidation of the assets of the
                  Member or Former Member, or assets of the Member's or Former
                  Member's spouse or dependents (within the meaning of section
                  152 of the Code) that are reasonably available to the Member
                  or Former Member, except to the extent that such liquidation
                  would itself give rise to a Hardship; or

                           (III) by cessation of Deferred Contributions to the
                  Plan or employee contributions or elective deferrals under any
                  other qualified or non- qualified plan maintained by the
                  Company or any other employer; or

                           (IV) by (1) taking payments which are then available
                  under any other qualified or non-qualified plan maintained by
                  the Company or any other employer, or (2) obtaining loans
                  under any qualified or non-qualified plan maintained by the
                  Company or any other employer that are not, at the time of
                  origination, treated as taxable distributions under section
                  72(p) of the Code, or (3) borrowing from commercial sources on
                  reasonable commercial terms; or

                  (B) all of the following requirements are met:

                           (I) the amount withdrawn does not exceed the amount
                  of the expense (including taxes due thereon) which constitutes
                  the Hardship; and

                           (II) the Member or Former Member has withdrawn (or
                  requested withdrawal of) all amounts available for withdrawal
                  on grounds other than Hardship under all qualified and
                  non-qualified plans maintained by the Company or any
                  Affiliated Employer; and

                           (III) the Member or Former Member has obtained all
                  loans available to him under all qualified and non-qualified
                  plans maintained by the Company or any Affiliated Employer
                  that are not taxable as distributions under section 72(p) of
                  the Code; and

                           (IV) the Member or Former Member waives his right to
                  make Deferred Contributions under this Plan, or elective
                  deferrals or nondeductible voluntary contributions under any
                  other qualified or non qualified plan maintained by the
                  Company or any Affiliated Employer, for a period of 12 months
                  following the date of the withdrawal (if the withdrawal is
                  made

                                      -46-

<PAGE>

                  before January 1, 2002 and 6 months following the date of the
                  withdrawal (if the withdrawal is made after December 31, 2001)
                  ; and

                           (V) the Member or Former Member waives his right, for
                  his taxable year following the taxable year in which the
                  withdrawal is made, to make Deferred Contributions under this
                  Plan and elective deferrals under any other qualified plan
                  maintained by the Company or any Affiliated Employer in an
                  aggregate amount which exceeds the excess of (a) the maximum
                  dollar limitation imposed under section 402(g) of the Code on
                  elective deferrals for the taxable year following the taxable
                  year in which the withdrawal is made, over (b) the aggregate
                  amount of the Member's or Former Member's Deferred
                  Contributions under the Plan and elective deferrals under all
                  other qualified plans maintained by the Company or any
                  Affiliated Employer for the taxable year in which the
                  withdrawal is made; or

                  (C) The Member or Former Member satisfies such other
         conditions as the Commissioner of Internal Revenue shall determine to
         be justification for a presumption that a withdrawal is necessary to
         alleviate a Hardship.

                  (c) Withdrawals made pursuant to this section 11.3 shall be
made pursuant to a written request (which request shall be irrevocable), in the
form and manner prescribed by the Plan Administrator, and shall be effected as
of the first Valuation Date to occur at least 60 days after the Plan
Administrator receives the request for withdrawal, or as of such later Valuation
Date as shall be specified in such request, by redeeming vested account balances
to the credit of the Member or Former Member in the Investment Funds in such
proportions as shall be specified in the request for withdrawal, or if no
proportions are specified in proportion to the value of his interest in each
Investment Fund.

                  (d) The minimum amount which may be withdrawn is the lesser of
$1,000 and the balance in the Member's Deferred Contribution Account (excluding
interest), plus, if applicable, the Member's Rollover Account and After-Tax
Account.

                  (e) The withdrawal shall be paid to the Member within sixty
(60) days after the Member's written request is received by the Plan
Administrator. The balance in the Member's Deferred Contribution Account and
Rollover Account shall be determined as of the Valuation Date immediately
preceding the date of payment (plus Deferred Contributions and Rollover
Contributions made since the Valuation Date).

                  SECTION 11.4      DISTRIBUTIONS ON TERMINATION OF EMPLOYMENT.

                  Subject to section 11.8, upon the termination of employment of
a Member or Former Member, the vested balance, if any, to his credit under the
Plan shall be distributed to him:

                  (a) if the Member or Former Member has attained Normal
         Retirement Age at the time of his termination of employment, in a
         single lump sum payment as of the first Valuation Date to occur
         following his termination of employment; and

                                      -47-

<PAGE>

                  (b) in all other cases:

                           (i) if the entire vested balance credited to the
                  Member's or Former Member's Accounts (exclusive of any balance
                  credited to the Member's or Former Member's Rollover Account,
                  beginning January 1, 2002) is not more than (A) $3,500 (or
                  such other amount as may be prescribed pursuant to section
                  417(e) of the Code) prior to January 1, 1998 and (B) $5,000
                  (or such other amount as may be prescribed pursuant to section
                  417(e) of the Code) after December 31, 1997, as of the first
                  Valuation Date to occur following his termination of
                  employment; and

                           (ii) if the entire vested balance credited to the
                  Member's or Former Member's Accounts (exclusive of any balance
                  credited to the Member's or Former Member's Rollover Account,
                  beginning January 1, 2002) is greater than (A) $3,500, (or
                  such other amount as may be prescribed pursuant to section
                  417(e) of the Code) prior to January 1, 1998 and (B) $5,000
                  (or such other amount as may be prescribed pursuant to section
                  417(e) of the Code) after December 31, 1997, in a single lump
                  sum payment or in one or more partial payments as of such
                  Valuation Date or Valuation Dates occurring prior to his
                  attainment of Normal Retirement Age as the Member or Former
                  Member may elect, with a final lump sum payment of the
                  remaining vested balance (if any) credited to his Accounts
                  made as of the first Valuation Date following his attainment
                  of Normal Retirement Age.

Payment shall be made as soon as practicable after the applicable Valuation
Date.

                  SECTION 11.5      PAYMENTS TO BENEFICIARIES.

                  (a) (i) Any Member or Former Member with a balance to his
         credit under the Plan may designate a primary Beneficiary or
         Beneficiaries to receive any distribution to which he may be entitled
         upon his death. A Member or Former Member who has designated a primary
         Beneficiary or Beneficiaries under this section 11.5 may also designate
         a contingent Beneficiary or Beneficiaries to receive any distribution
         to which such Member or Former Member may be entitled upon his death in
         the event that all of the primary Beneficiaries designated by such
         Member or Former Member predecease him. Any Beneficiary designation
         must be made in writing and shall not be effective unless received by
         the Plan Administrator prior to the death of the person giving it and
         may be changed or revoked by means of a similar written instrument. A
         Member or Former Member who is married shall automatically be deemed to
         have designated his spouse as his sole primary Beneficiary unless,
         prior to the time such designation would become irrevocable:

                  (i) the Member or Former Member has designated a different or
         additional primary Beneficiary in accordance with this section 11.5;
         and

                  (ii) (A) his spouse has consented to such designation in a
         writing that has acknowledged the effect of such consent and was
         witnessed by a Plan representative or a notary public; or (B) his
         spouse has previously consented to such designation by

                                      -48-

<PAGE>

         signing a written waiver of any right to consent to any designation
         made by the Member or Former Member and such waiver acknowledged the
         effect of the waiver and was witnessed by a Plan representative or a
         notary public; or (C) it is established to the satisfaction of a Plan
         representative that the consent of such spouse can not be obtained
         because such spouse cannot be located or because of other circumstances
         as the Secretary of the Treasury may by regulations prescribe.

In the event that all of the primary and contingent Beneficiaries designated
hereunder predecease the person who designated them, then payment shall be made
to the executor or administrator of the estate of the person who designated such
deceased Beneficiary or Beneficiaries or if no such executor or administrator is
appointed within such time as the Plan Administrator, in his discretion, shall
deem reasonable, to such one or more of the spouse and descendants and blood
relatives of such person as the Plan Administrator may select. If a Member or
Former Member and any Beneficiary or contingent Beneficiary designated by him
shall die in such circumstances that there shall be substantial doubt as to
which of them shall have been the first to die, for all purposes of the Plan,
the person entitled to receive the distribution prior to his death shall be
deemed to have survived such Beneficiary or contingent Beneficiary.

                  (b) If a Member or Former Member dies before the Valuation
Date as of which entire vested balance credited to his Accounts will be
distributed to him, any remaining vested balance credited to the Member's or
Former Member's Accounts as promptly as practicable following the Plan
Administrator's receipt of notice of the Member's or Former Member's death, and
the amount of such distribution shall be determined as of the first Valuation
Date to occur following receipt of such notice; provided however, that such
distribution shall, in any event, be made no later than December 31st of the
calendar year following the calendar year in which the Member or Former Member
dies.

                  (c) The determination of whether a Beneficiary is a Designated
Beneficiary and whether a Designated Beneficiary is a surviving spouse shall be
made not later than September 30th of the calendar year following the calendar
year in which the Employee dies.

                  SECTION 11.6      DISTRIBUTION IN SHARES.

                  Subject to such terms and conditions as may be established
from time to time by the Plan Administrator, the portion of any distribution
that is attributable to the interest of a Member, Former Member or Beneficiary
in the Employer Stock Fund shall, if the payment recipient so requests, be paid
wholly or partially in Shares. In such event, the maximum number of Shares to be
distributed shall be the number of whole Shares that could have been purchased
with the Member's, Former Member's or Beneficiary's interest in the Employer
Stock on the basis of the value of such interest as of the Valuation Date for
the distribution and the fair market value of a Share on such Valuation Date.
Fair market value for this purpose shall be determined in such uniform and
nondiscriminatory manner as the Plan Administrator may prescribe. Any remaining
vested balance of the Member, Former Member or Beneficiary in the Employer Stock
Fund shall be paid in cash or cash equivalents.

                                      -49-

<PAGE>

                  SECTION 11.7      DIRECT ROLLOVERS.

                  (a) This section 11.7 applies to distributions made on or
         after January 1, 1993. A Distributee may elect, at the time and in the
         manner prescribed by the Plan Administrator, to have any portion of an
         Eligible Rollover Distribution paid directly to an Eligible Retirement
         Plan specified by the Distributee in a Direct Rollover.

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

                  (c) For purposes of this section 11.7 and any other applicable
         section of the Plan, the following definitions shall have the following
         meanings:

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

                  (ii) "Distributee" means an Employee or former Employee. In
         addition, the Employee's or former Employee's surviving spouse and the
         Employee's or former Employee's spouse or former spouse who is the
         alternate payee under a qualified domestic relations order, as defined
         in section 414(p) of the Code, are considered Distributees with regard
         to the interest of the spouse or former spouse.

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

                  (iv) "Eligible Rollover Distribution" means any distribution
         of all or any portion of the balance to the credit of the Distributee,
         except that an Eligible Rollover Distribution does not include: any
         distribution that is one of a series of substantially equal periodic
         payments (not less frequently than annually) made for the life (or life
         expectancy) of the Distributee or the joint lives (or joint life
         expectancies) of the Distributee and the Distributee's designated
         Beneficiary, or for a specified period of ten (10) years or more; any
         distribution to the extent such distribution is required under section
         401(a)(9) of the Code; any distribution made after December 31, 1999 on
         account of Hardship; and in the case of a distribution made before
         January 1,

                                      -50-

<PAGE>

         2002, the portion of any distribution that is not includable in gross
         income (determined without regard to the exclusion for net unrealized
         appreciation with respect to employer securities). A portion of a
         distribution that is includible in the gross income of the Distributee
         that is treated as an Eligible Rollover Distribution may only be
         transferred in a direct rollover to an Eligible Retirement Plan that
         agrees to separately account for such portion of the distribution.

                  SECTION 11.8      MINIMUM DISTRIBUTION REQUIREMENTS.

                  (a) Notwithstanding anything contained in the Plan to the
         contrary, required minimum distributions of the vested balance credited
         to a Member's or Former Member's Accounts shall commence with:

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

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

PROVIDED, HOWEVER, that any Member who is employed by the Company as of January
1, 1997 may elect not to receive, or to discontinue receiving, such required
minimum distributions until April 1 of the year following the year in which such
Member retires from Service with the Company or becomes a Five Percent Owner,
whichever is earlier; PROVIDED, FURTHER, that such an election will not affect
the Member's right to request in-service withdrawals as provided in section 11.3
of this Plan.

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

                  (i) The minimum required distribution to be made for the
         calendar year for which the first minimum distribution is required
         shall be made no later than April 1st of the immediately following
         calendar year and shall be equal to the quotient obtained by dividing
         (A) the vested balance credited to the Member's or Former Member's
         Account as of the last Valuation Date to occur in the calendar year
         immediately preceding the calendar year for which the first minimum
         distribution is required (adjusted to account for any additions thereto
         or subtractions therefrom after such Valuation Date but on or before
         December 31st of such calendar year); by (B) the Member's or Former
         Member's life expectancy (or, if his Beneficiary is a Designated
         Beneficiary, the joint life and last survivor expectancy of him and his
         Beneficiary); and

                                      -51-

<PAGE>

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

                  (c) For purposes of section 11.8(b):

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

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

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

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

                                      -52-

<PAGE>

                                   ARTICLE XII

                                 ADMINISTRATION

                  SECTION 12.1      PLAN ADMINISTRATOR.

                  There shall be a Plan Administrator, who shall be an
individual, committee or other person appointed by the Company to perform the
duties and have the responsibilities imposed upon the Plan Administrator
pursuant to the Plan and ERISA. If the Company shall fail to appoint a Plan
Administrator, then the Company shall serve in such capacity. A Plan
Administrator appointed by the Company may resign only by giving at least thirty
(30) days prior written notice of resignation to the Company, and such
resignation shall be effective on the date specified in such notice. The Trustee
and any other person dealing with the Plan Administrator shall be fully
protected in relying upon any written notice, instruction, direction or other
communication signed by the person certified to it by the Company as the duly
appointed Plan Administrator or by any person authorized by the Plan
Administrator to sign the same on his behalf.

                  SECTION 12.2      PLAN ADMINISTRATOR'S POWERS AND
                                    RESPONSIBILITIES.

                  The Plan Administrator shall, subject to the responsibilities
of the Trustee and the Company, have the following responsibilities:

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

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

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

                  (d) To require such proof as may be necessary or appropriate
         in the administration of the Plan, including without limitation, proof
         of age, relationship or good health of a Member, Former Member or the
         spouse, children or Beneficiary of either, and if satisfactory proof is
         not submitted, the Plan Administrator may make such determination for
         purposes of the Plan, and such determination shall be conclusive and
         binding;

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

                  (f) To determine any question arising in connection with the
         Plan, and the Plan Administrator's decision or action in respect
         thereof shall be final and

                                      -53-

<PAGE>

         conclusive, and binding upon the Company, the Trustee, other
         Fiduciaries, Members, Former Members and any other person having an
         interest under the Plan;

                  (g) To review and dispose of claims filed pursuant to section
         12.3, and appeals filed pursuant to section 12.4;

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

                  (i) To review the performance of the Trustee and other Named
         Fiduciaries in investing, managing and controlling the assets of the
         Plan;

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

                  (k) To report to and make recommendations to the Board
         regarding changes in the Plan, including changes in the operation and
         management of the Plan and removal and replacement of the Trustee or
         other fiduciaries or service providers;

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

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

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

                  SECTION 12.3      CLAIMS PROCEDURE.

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

                  (a) The reasons for the denial;

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

                                      -54-

<PAGE>

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

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

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

                  SECTION 12.4      CLAIMS REVIEW PROCEDURE.

                  Any person whose claim filed pursuant to section 12.3 has been
denied in whole or in part by the Plan Administrator may request review of the
claim by the Trustees, upon a form prescribed by the Plan Administrator. The
claimant shall file such form (including a statement of his position) with the
Trustees no later than 90 days after the mailing or delivery of the written
notice of denial provided for in section 12.3, or, if such notice is not
provided, within 90 days after such claim is deemed denied pursuant to section
12.3. The claimant shall be permitted to review pertinent documents. A decision
shall be rendered by the Trustees and communicated to the claimant not later
than 60 days after receipt of the claimant's written request for review.
However, if the Trustees finds it necessary, due to special circumstances (for
example, the need to hold a hearing), to extend this period and so notifies the
claimant in writing, the decision shall be rendered as soon as practicable, but
in no event later than 120 days after the claimant's request for review. The
decision of the Trustees shall be in writing and shall specifically set forth:

                  (a) The reasons for the decision; and

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

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

                  SECTION 12.5      ALLOCATION OF FIDUCIARY RESPONSIBILITIES AND
                                    EMPLOYMENT OF ADVISORS.

                  Any Fiduciary may:

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

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

                                      -55-

<PAGE>

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

                  SECTION 12.6      OTHER ADMINISTRATIVE PROVISIONS.

                  (a) Any person whose claim has been denied in whole or in part
must exhaust the administrative review, procedures provided in section 12.4
prior to initiating any claim for judicial review.

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

                  (c) Subject to any limitation on the application of this
section 12.6(c) pursuant to ERISA, neither the Plan Administrator, the Trustees,
nor any officer or Employee of the Company to whom fiduciary responsibilities
are allocated by a Fiduciary, shall be liable for any act of omission or
commission by himself or by another person, except for his own individual
willful and intentional malfeasance.

                  (d) The Plan Administrator may, except with respect to actions
under section 12.4, shorten, extend or waive the time (but not beyond 60 days)
required by the Plan for filing any notice or other form with the Plan
Administrator, or taking any other action under the Plan.

                  (e) The Plan Administrator may direct that the costs of
services provided pursuant to section 12.5, and such other reasonable expenses
as may be incurred in the administration of the Plan, shall be paid out of the
funds of the Plan unless the Company shall pay them.

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

                  (g) Any discretionary acts to be taken under the Plan with
respect to its administration shall be uniform in their nature and applicable to
all persons similarly situated, and no discretionary acts shall be taken which
will be discriminatory under the provisions of the Code applicable to plans of
this nature.

                  (h) Any action taken or omitted to be taken by a Fiduciary
pursuant to authority granted hereunder shall be conclusive and binding on all
parties, except to the extent that a court of competent jurisdiction determines
that in acting or omitting to act, a Fiduciary has acted arbitrarily and
capriciously.

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

                                      -56-

<PAGE>

                  (j) Wherever, in the administration of the Plan, any action by
the Company or the Plan Administrator is required with respect to eligibility,
classification of Employees, contributions, benefits or determinations of Hours
of Service or any other matter, such action shall be substantially uniform in
nature as applied to all persons similarly situated.

                                  ARTICLE XIII

                            AMENDMENT AND TERMINATION

                  SECTION 13.1      AMENDMENT AND TERMINATION.

                  The Company expects to continue the Plan indefinitely, but
specifically reserves the right, in its sole discretion, at any time, by
appropriate action of the Board, to amend, in whole or in part, any or all of
the provisions of the Plan and to terminate the Plan at any time. Subject to the
provisions of section 13.3, no such amendment or termination shall permit any
part of the Trust Fund to be used for or diverted to purposes other than for the
exclusive benefit of Members, Former Members, Beneficiaries or other persons
entitled to benefits, and no such amendment or termination shall reduce the
accrued benefit of any Member, Former Member, Beneficiary or other person who
may be entitled to benefits, without his consent. In the event of a termination
or partial termination of the Plan or upon complete discontinuance of
contributions under the Plan, the Account of each affected Participant and
Former Participant shall forthwith become fully vested.

                  SECTION 13.2      AMENDMENT OR TERMINATION OTHER THAN BY
                                    ASTORIA FEDERAL SAVINGS AND LOAN
                                    ASSOCIATION.

                  In the event that a corporation or trade or business other
than Astoria Federal Savings and Loan Association shall adopt this Plan, such
corporation or trade or business shall, by adopting the Plan, empower Astoria
Federal Savings and Loan Association to amend or terminate the Plan, insofar as
it shall cover employees of such corporation or trade or business, upon the
terms and conditions set forth in section 13.1; provided, however, that any such
corporation or trade or business may, by action of its board of directors or
other governing body, amend or terminate the Plan, insofar as it shall cover
employees of such corporation or trade or business, at different times and in a
different manner. In the event of any such amendment or termination by action of
the board of directors or other governing body of such a corporation or trade or
business, a separate plan shall be deemed to have been established for the
employees of such corporation or trade or business, and the assets of such plan
shall be segregated from the assets of this Plan at the earliest practicable
date and shall be dealt with in accordance with the documents governing such
separate plan.

                  SECTION 13.3      CONFORMITY TO U.S. INTERNAL REVENUE CODE.

                  The Company has established the Plan with the intent that the
Plan and Trust will at all times be qualified under section 401(a) and exempt
under section 501(a) of the Code, and with the intent that contributions under
the Plan will be allowed by the Code as deductions in computing net income of
the Company for federal income tax purposes, and the provisions of the Plan and
Trust Agreement shall be construed to effectuate such intentions. Accordingly,
notwithstanding anything

                                      -57-

<PAGE>

to the contrary herein provided, the Plan and the Trust Agreement may be amended
at any time without prior notice to Members, Former Members, Beneficiaries or
any other persons, if such amendment is deemed by the Board to be necessary or
appropriate to effectuate such intent.

                  SECTION 13.4      CONTINGENT NATURE OF CONTRIBUTIONS.

                  (a) All contributions to the Plan, other than Rollover
Contributions, are made upon the condition that such contributions will be
allowed as a deduction in computing the net income of the Company for Federal
income tax purposes. To the extent that any such deduction is disallowed, the
amount disallowed may, at the election of the Company, be returned to the
Company within one year after the deduction is disallowed.

                  (b) Any contributions made to the Plan as a result of a
mistake of fact may, at the election of the Company, be returned to the Company
within one year after such contributions are made.

                                   ARTICLE XIV

                     SPECIAL RULES FOR TOP HEAVY PLAN YEARS

                  SECTION 14.1      IN GENERAL.

                  As of the Determination Date for each Plan Year, the Plan
Administrator shall determine whether the Plan is a Top Heavy Plan in accordance
with the provisions of this Article XIV. If, as of such Determination Date, the
Plan is a Top Heavy Plan, then the Plan Year immediately following such
Determination Date shall be a Top Heavy Plan Year and the special provisions of
this Article IV shall be in effect.

                  SECTION 14.2      DETERMINATION OF TOP HEAVY PLAN.

                  (a) Subject to section 14.2(c), the Plan is a Top Heavy Plan,
if, as of a Determination Date: (i) it is not a member of a Required Aggregation
Group, and (ii)(A) the sum of the Cumulative Accrued Benefits of all Key
Employees exceeds 60% of (B) the sum of the Cumulative Accrued Benefits of all
Employees (excluding former Key Employees), former Employees (excluding former
Key Employees and all other former Employees who have not performed any services
for the Company or any Affiliated Employer during the immediately preceding 5
Plan Years if the Determination Date is before January 1, 2002 and one Plan Year
If the Determination Date is after December 31, 2001) and their Beneficiaries.

                  (b) Subject to section 14.2(c), the Plan is a Top Heavy Plan,
if, as of a Determination Date: (i) the Plan is a member of a Required
Aggregation Group, and (ii)(A) the sum of the Cumulative Accrued Benefits of all
Key Employees under all plans that are members of the Required Aggregation Group
exceeds 60% of (B) the sum of the Cumulative Accrued Benefits of all Employees
(excluding former Key Employees), former Employees (excluding former Key
Employees and all other former Employees who have not performed any services for
the Company

                                      -58-

<PAGE>

or any Affiliated Employer during the immediately preceding 5 Plan Years if the
Determination Date is before January 1, 2002 and one Plan Year If the
Determination Date is after December 31, 2001), and their Beneficiaries under
all plans that are members of the Required Aggregation Group.

                  (c) Notwithstanding sections 14.2(a) and 14.2(b), the Plan is
not a Top Heavy Plan if, as of a Determination Date: (i) the Plan is a member of
a Permissible Aggregation Group, and (ii) (A) the sum of the Cumulative Accrued
benefits of all Key Employees under all plans that are members of the
Permissible Aggregation Group does not exceed 60 % of (B) the sum of the
Cumulative Accrued Benefits of all Employees (excluding former Key Employees),
former Employees (excluding former Key Employees and all other former Employees
who have not performed any services for the Company or any Affiliated Employer
during the immediately preceding 5 Plan Years if the Determination Date is
before January 1, 2002 and one Plan Year If the Determination Date is after
December 31, 2001), and their Beneficiaries under all plans that are members of
the Permissible Aggregation Group.

                  SECTION 14.3      DETERMINATION DATE.

                  The Determination Date of the Plan Year shall be the last day
of the preceding Plan Year. The Determination Date for any other plan maintained
by the Company or any Affiliated Employer for a plan year shall be the last day
of the preceding plan year of each such plan, except that in the case of the
first plan year of such plan, it shall be the last day of such first plan year.

                  SECTION 14.4      CUMULATIVE ACCRUED BENEFITS.

                  (a) A person's Cumulative Accrued Benefits under this Plan as
         of a Determination Date shall equal the sum of:

                  (i) the value of such person's Accounts under this Plan as of
         the most recent Valuation Date coincident with or next preceding the
         Determination Date; and

                  (ii) the amount of any distributions of such person's
         Cumulative Accrued Benefits under the Plan (including, for Plan Years
         beginning after December 31, 2001, distributions under terminated plans
         that would have been included in the Required Aggregation Group if not
         terminated) during the 5-year period (for all distributions for Plan
         Years beginning before January 1, 2002 and for in-service distributions
         for Plan Years beginning after December 31, 2001) or 1-year period (for
         all distributions other than in-service distributions for Plan Years
         beginning after December 31, 2001) ending on the Determination Date.

For purposes of this section 14.4(a), the computation of a person's Cumulative
Accrued Benefits, and the extent to which distributions, rollovers and transfers
are taken into account will be made in accordance with section 416 of the Code
and the regulations thereunder.

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

                                      -59-

<PAGE>

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

                  SECTION 14.5      KEY EMPLOYEES.

                  (a) For purposes of the Plan, the term Key Employee means any
         Employee or former Employee (including any deceased Employee) who, at
         any time during the current Plan Year or (for Plan Years beginning
         before January 1, 2002) any of the four preceding Plan Years, is or
         was: (i) an Officer having annual Total Compensation greater than: (A)
         50% of the amount in effect under section 415(b)(1)(A) of the Code (for
         Plan Years beginning before January 1, 2002) and ((B) the greater of
         $130,000 or such higher amount as may be prescribed under section
         416(i) of the Code (for Plan Years beginning after December 31, 2001);
         (ii) a person who is a Five Percent Owner; (iii) a person who owns more
         than 1% of the Company and who has an annual Total Compensation from
         the Company of more than $150,000; or (iv) in Plan Years beginning
         before January 1, 2002, 1 of the 10 persons owning the largest
         interests in the Company and having an annual compensation from the
         Company in excess of the dollar limitation in effect under section
         415(c)(1)(A) of the Code for such Plan Year.

                  (b) For purposes of section 14.5(a):

                  (i) a person's Total Compensation from Affiliated Employers
         shall be aggregated, but his ownership interests in Affiliated
         Employers shall not be aggregated;

                  (ii) the term Key Employee shall also include the Beneficiary
         of a deceased Key Employee;

                  (iii) for purposes of section 14.5(a)(i), no more than 50
         Employees (or, if less, the greater of 3 or 10% of all Employees) shall
         be treated as officers and in the event the Company has more officers
         than the maximum number required to be taken into account under section
         14.5(a)(i), the term Key Employee shall mean those officers, up to the
         maximum number, with the highest annual Total Compensation in any one
         of the 5 consecutive Plan Years ending on the Determination Date; and

                  (iv) for purposes of section 14.5(a)(ii), if two or more
         persons have equal ownership interests in the Company, each such person
         shall be considered as having a larger ownership interest than any such
         person with a lower annual Total Compensation.

                  SECTION 14.6      REQUIRED AGGREGATION GROUP.

                  For purposes of this Article XIV, a Required Aggregation Group
shall consist of (a) this Plan; (b) any other qualified plan maintained by the
Company that covers Key Employees;

                                      -60-

<PAGE>

(including any plan that was terminated during the 5-year period ending on the
Determination Date) and (c) any other qualified plans that are required to be
aggregated for purposes of satisfying the requirements of sections 401(a)(4) and
410(b) of the Code (including any plan that was terminated during the 5-year
period ending on the Determination Date).

                  SECTION 14.7      PERMISSIBLE AGGREGATION GROUP.

                  For purposes of this Article XIV, a Permissible Aggregation
Group shall consist of (a) the Required Aggregation Group and (b) any other
qualified plans maintained by the Company; PROVIDED, HOWEVER, that the
Permissible Aggregation Group must satisfy the requirements of sections
401(a)(4) and 410(b) of the Code.

                  SECTION 14.8      SPECIAL REQUIREMENTS DURING TOP HEAVY PLAN
                                    YEARS.

                  (a) During any Top Heavy Plan Year which begins before January
         1, 1989, the amount of compensation taken into account under the Plan
         for any person shall not exceed $200,000 (or such higher amount as may
         be prescribed by regulation in accordance with section 416(d)(2) of the
         Code).

                  (b) For each Top Heavy Plan Year a minimum employer
         contribution shall be made with respect to a Member (other than a Key
         Employee) who is a Member on the last day of such Top Heavy Plan Year.
         Such minimum contribution, when expressed as a percentage of his Total
         Compensation for such Top Heavy Plan Year, shall not be less than 3% of
         such Member's Total Compensation for such Top Heavy Plan Year, or if
         less, the highest combined rate, expressed as a percentage of Total
         Compensation at which employer contributions (including Deferred
         Contributions other than Catch-Up Deferred Contributions) were made on
         behalf of a Key Employee for such Top Heavy Plan Year. In Plan Years
         beginning after December 31, 2001, Company Contributions shall be
         applied to offset the required minimum contribution and shall also be
         taken into account in determining Contribution Percentages.

                  (c) For any Top Heavy Plan Year, the number "1.0"shall be
         substituted for the number "1.25" in sections 6.2(c)(ii) and
         6.2(c)(iii), that begins before January 1, 2000 except that:

                  (i) this section 14.8(c) shall not apply to any person for a
         Top Heavy Plan Year that is not a Super Top Heavy Plan Year if the
         requirements of section 14.8(b) would be satisfied for such Top Heavy
         Plan Year if the number "4%" were substituted for the number "3%" in
         section 14.8(b); and

                  (ii) this section 14.8(c) shall not apply to any person for a
         Top Heavy Plan Year if, during such Top Heavy Plan Year, there are no
         employer contributions allocated to such person under this Plan or any
         other qualified defined contribution plan maintained by the Company,
         and there are no accruals for such person under any qualified defined
         benefit plan maintained by the Company.

                                      -61-

<PAGE>

For purposes of this section 14.8(c), the term Super Top Heavy Plan Year means a
Top Heavy Plan Year in which the Plan would meet the definitional requirements
of sections 14.2(a) or 14.2(b) if the term "90%" were substituted for the term
"60%" in sections 14.2(a), 14.2(b) and 14.2(c).

                                   ARTICLE XV

                            MISCELLANEOUS PROVISIONS

                  SECTION 15.1      GOVERNING LAW.

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

                  SECTION 15.2      HEADINGS.

                  The headings of articles and sections are included solely for
convenience of reference and are to be ignored in any construction of the
provisions hereof. If there is any conflict between these headings and the text
of the Plan, the text shall control. Any reference to a section or article
number shall refer to a section or article of this Plan unless otherwise stated.

                  SECTION 15.3      NO RIGHT TO CONTINUED EMPLOYMENT.

                  Neither the establishment of the Plan, nor any provisions of
the Plan or of the Trust Agreement establishing the Trust Fund, nor any action
of the Plan Administrator or Trustees, shall be held or construed to confer upon
any Employee any right to a continuation of employment by the Company. This Plan
shall not be construed as creating or changing any contract of employment
between the Company and its Employees, whether Members hereunder or not. The
Company reserves the right to deal with its Employees, whether Members hereunder
or not, and to terminate their respective employment at any time, to the same
extent as though this Plan had not been adopted.

                  SECTION 15.4      CONSTRUCTION OF LANGUAGE.

                  Wherever appropriate in the Plan, words used in the singular
may be read in the plural, words used in the plural may be read in the singular,
and words importing the masculine gender shall include the feminine and the
neuter.

                  SECTION 15.5       MERGER WITH OTHER PLANS.

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

                                      -62-

<PAGE>

                  SECTION 15.6      NON-ALIENATION OF BENEFITS.

                  (a) Except as provided in section 15.6(b) and (c), the right
         to receive a benefit or interest under the Plan shall not be subject in
         any manner to anticipation, alienation, or assignment, either
         voluntarily or involuntarily, nor shall such right be liable for or
         subject to debts, contracts, liabilities, engagements or torts.

                  (b) This section 15.6 shall not prohibit the Plan
         Administrator from recognizing a Domestic Relations Order that is
         determined to be a Qualified Domestic Relations Order in accordance
         with section 15.7.

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

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

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

                  SECTION 15.7      PROCEDURES INVOLVING DOMESTIC RELATIONS
                                    ORDERS.

                  Upon receiving a Domestic Relations Order, the Plan
Administrator shall segregate in a separate account or in an escrow account, or
separately account for, the amounts payable to any person pursuant to such
Domestic Relations Order, pending a determination whether such Domestic
Relations Order constitutes a Qualified Domestic Relations Order, and shall give
notice of the receipt of the Domestic Relations Order to the Member or Former
Member and each other person affected thereby. If, within 18 months after
receipt of such Domestic Relations Order, the Plan Administrator, a court of
competent jurisdiction or another appropriate authority determines that such
Domestic Relations Order constitutes a Qualified Domestic Relations Order, the
Plan Administrator shall direct the Trustee to pay the segregated amounts (plus
any interest thereon) to the person or persons entitled thereto under the
Qualified Domestic Relations Order. If it is determined that the Domestic
Relations Order is not a Qualified Domestic Relations Order or if no
determination is made within the prescribed 18-month period, the segregated
amounts shall be distributed as though the Domestic Relations Order had not been
received, and any later

                                      -63-

<PAGE>

determination that such Domestic Relations Order constitutes a Qualified
Domestic Relations Order shall be applied only with respect to benefits that
remain undistributed on the date of such determination. The Plan Administrator
shall be authorized to establish such reasonable administrative procedures as he
deems necessary or appropriate to administer this section 15.7. This section
15.7 shall be construed and administered so as to comply with the requirements
of sections 401(a)(13) and 414(p) of the Code, as amended by the Retirement
Equity Act of 1984.

                  SECTION 15.8      ENFORCEABILITY.

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

                  SECTION 15.9      EFFECT OF RESTATEMENT.

                  Except as otherwise provided herein, the Plan described herein
shall, effective as of January 1, 1994, amend and supersede all provisions of
the Plan as in effect on December 31, 1993, except that the rights of persons
who terminated employment or retired prior to January 1, 1994 shall be governed
by the terms of the Plan at the time of such termination or retirement.

                                   ARTICLE XVI

                    SPECIAL RULES FOR FORMER PARTICIPANTS IN

                THE LONG ISLAND SAVINGS BANK 401(K) SAVINGS PLAN

                  SECTION 16.1      MERGER WITH LISB PLAN.

                  Effective as of such date as the Plan Administrator may
specify as the effective date for the merger of The Long Island Savings Bank
401(k) Savings Plan ("LISB Plan") into the Plan the LISB Plan was merged with
and into the Plan and the assets and liabilities of the LISB Plan were
transferred to the Plan. The provisions of this Article XVII shall apply to
individuals who were former participants in the LISB Plan immediately before the
merging of the plans.

                  SECTION 16.2      ACCOUNTS OF LISB PARTICIPANTS.

                  Effective as of such date as the Plan Administrator may
specify as the effective date for the merger of the LISB Plan into the Plan, the
assets and liabilities credited to a LISB Participant's "Participant's Account"
shall be transferred from the LISB Plan into the Accounts established for him
under the Plan ("Transferred Assets"). Amounts which were treated as "Deferred
Salary Contributions" or "Participant Contributions" in the LISB Plan shall be
treated as Deferred Contribution or "After-Tax Contributions", respectively,
amounts which were treated as a "Rollover Contributions" in the LISB Plan shall
be treated as Rollover Contributions and amounts which were treated as "Matching
Thrift Contribution" in the LISB Plan shall be treated as Company Contributions.

                                      -64-

<PAGE>

                  SECTION 16.3      STATUS AS MEMBER.

                  Any person who was a Participant, or an employee with a
Rollover Contribution Account, in the LISB Plan ("LISB Participant") who has an
Account under Section 17.2 shall be deemed to be a Member except that no
contributions shall be made for and no Forfeitures shall be allocated to a LISB
Participant until he has satisfied the eligibility requirements set forth in
Section 3.1 and become a Member in accordance with Section 3.2.

                  SECTION 16.4      DISTRIBUTION PROVISIONS.

                  Until the nineteenth day after the date on which the Plan
Administrator notifies a LISB Beneficiary that his distribution options are
limited to this contained elsewhere in this Plan, a LISB Participant or LISB
Beneficiary shall be entitled to receive that portion of his Account
attributable to Transferred Assets distributed under one of the methods of
distribution under the LISB Plan at such times and according to such procedures
as are specified in the LISB Plan as of the day before date as the Plan
Administrator may specify as the effective date for the merger of the LISB Plan
into the Plan. Thereafter, he or she shall receive his or her Account balance
according to one of the methods of distribution under set forth in this Plan
without regard to this Section 16.4.

                                      -65-

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