Document:

<PAGE>

                                  EXHIBIT 10.5

<PAGE>

                             ATLANTIC COAST FEDERAL

                            DIRECTOR RETIREMENT PLAN

                                  July 1, 2001

        This Atlantic Coast Federal Director Retirement Plan (the "Plan") is
established for the purpose of providing retirement benefits to those
non-employee members of the Board of Directors of Atlantic Coast Federal (each a
"Director") who have contributed significantly to the success and growth of
Atlantic Coast Federal, and its predecessor Atlantic Coast Federal Credit Union,
whose services are vital to its continued growth and success in the future and
who are to be encouraged to remain a member of the Board of Directors until
retirement.

                                    ARTICLE I
                                   ELIGIBILITY

        A. Each current Director of Atlantic Coast Federal as of the date of the
adoption of this Plan who previously served as a Director of Atlantic Coast
Federal Credit Union shall be entitled to the Retirement Benefit in Article II
in accordance with the following vesting schedule:

                Vested Percentage Interest            December 31
                --------------------------            -----------

                          33%                            2001
                          66%                            2002
                         100%                            2003

        In the event that the Director (i) dies or (ii) becomes fully or
partially disabled (as determined by the Plan Administrator) and cannot perform
his duties as a Director his Percentage Vested Interest shall be equal to 100%.

        B. Each Director not covered under Article I, Section A, who has
attained 120 full months of service as a member of the Board of Directors of
Atlantic Coast Federal, whether continuous or otherwise, shall be entitled to
receive the retirement benefits as provided in this Plan. The Plan
Administrator, in its sole discretion, may allow hardship exceptions to this
vesting requirement for good cause shown.

        C. Any Director who resigns at the request of, or is removed from
service by, the Office of Thrift Supervision, the Federal Deposit Insurance
Corporation or any other regulatory authority for Atlantic Coast Federal, shall
be ineligible for benefits under this Plan.

                                        1
<PAGE>

                                   ARTICLE II
                               RETIREMENT BENEFIT

        A. NORMAL RETIREMENT. Commencing upon cessation of service as a Director
(the "Retirement"), Atlantic Coast Federal shall pay to the Director the vested
percentage of an annual benefit of Ten Thousand Dollars ($10,000) per year for
Ten (10) years (the "Benefit Period"), payable in equal monthly installments
over a period of One Hundred and Twenty (120) months, commencing on the first
day of the month following the Director's Retirement.

        B. DEATH AFTER RETIREMENT. If the Director dies within the Benefit
Period, the remaining monthly payments due the Director shall be paid when due
to the Director's designated beneficiary (including any contingent beneficiary)
on file with Atlantic Coast Federal or if no designation is on file, the spouse
shall be the designated beneficiary. In the absence of any spouse or designated
surviving beneficiary, the benefits shall be paid to the personal representative
of the estate of the Director.

        If the Director's designated beneficiary begins to receive the monthly
payments and thereafter dies without receiving the remaining monthly payments,
Atlantic Coast Federal shall pay the installments remaining to the contingent
beneficiary, if any, and then to the personal representative of the estate of
the designated beneficiary.

        C. DEATH OR DISABILITY PRIOR TO VESTING. In the event a Director covered
by Article I, Section B. dies, or becomes fully or partially disabled while
serving as a Director and his or her service is discontinued, and he has
attained at least 60 full months of service (whether continuous or otherwise)
but less than 120 full months of service, such person shall be eligible for
benefits under this Plan. The amount of the annual benefits payable to such
person or his or her designated beneficiary, as the case may be, over the
Benefit Period shall be equal to the product of $10,000 multiplied by a fraction
the denominator of which is 120 and the numerator of which is the number of full
months of service as a Director. Such benefits shall be paid in equal monthly
installments over the Benefit Period. Payments to the spouse or the beneficiary,
as the case maybe, shall follow the procedure in Article II, Section B.
Notwithstanding any other terms of this Plan, no death benefit shall be payable
under this Plan if it is determined by the Plan Administrator that the
Director's death was caused by suicide. The determination of disability shall be
made by the Plan Administrator.

        E. PRESENT VALUE OF BENEFITS. Upon the request of the designated
beneficiary (including any contingent beneficiary) or the personal
representative and for good cause shown, Atlantic Coast Federal may pay the
present value of benefits to such person in a single lump-sum payment. The
present value determination shall be made by the Plan Administrator in its sole
discretion

<PAGE>

                                   ARTICLE III
                                 STATUS OF PLAN

        This Plan does not constitute a contract of employment for any Director,
nor shall any provision of this Plan be construed as giving the Director the
right to continued service on the Board of Directors.

                                   ARTICLE IV
                                 BINDING EFFECT

        This Plan shall be binding upon the parties hereto and upon the
successors and assigns of Atlantic Coast Federal, and upon the heirs and legal
representatives of the Director.

                                    ARTICLE V
                              ASSIGNMENT OF RIGHTS

        Neither the Director nor the any beneficiary or personal representative
of the Director can assign any of the rights to benefits under this Plan. Any
attempt to anticipate, sell, transfer, assign, pledge, encumber or change the
Director's right to receive benefits shall be void. The rights to benefits are
not subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, attachment or garnishment by creditors.

                                   ARTICLE VI
                                  CHOICE OF LAW

         This Plan shall be construed under and governed by the laws of the
State of Georgia, except to the extent preempted by the laws of the United
States of America.

                                   ARTICLE VII
                              UNFUNDED ARRANGEMENT

        The Director and any beneficiary are general unsecured creditors of
Atlantic Coast Federal for the payment of benefits under this Plan. The benefits
represent the mere promise by Atlantic Coast Federal to pay such benefits.

                                  ARTICLE VIII
                               PLAN ADMINISTRATOR

        Atlantic Coast Federal is hereby designated the Plan Administrator. As
Plan Administrator, Atlantic Coast Federal shall be responsible for the
management, control, interpretation and administration of this Plan as
established herein and may allocate to others certain aspects of the management
and operation responsibilities of the Plan including the employment of advisors
and the delegation of any ministerial duties to qualified individuals. The Plan
Administrator shall allow such exceptions to the requirements from this Plan for
good cause shown. All decisions of the Plan Administrator shall be final.

                                        3
<PAGE>

                                   ARTICLE IX
                                   AMENDMENTS

        This Plan may be amended by Atlantic Coast Federal any time, but no such
amendment shall affect the rights of, or reduce the benefits to, any Director
without their written consent.

                                        4
<PAGE>

                             BENEFICIARY DESIGNATION

        I, _______________________________________, designate the following as
beneficiary of any death benefits payable under the Atlantic Coast Federal
Director Retirement Plan.

PRIMARY BENEFICIARY

Name   ___________________________________  Relationship  ______________________

Address   ______________________________________________________________________

CONTINGENT BENEFICIARY (to receive the benefits if there is no surviving Primary
Beneficiary)

Name   ___________________________________  Relationship  ______________________

Address   ______________________________________________________________________

NOTE: TO NAME A TRUST AS BENEFICIARY, PLEASE PROVIDE THE NAME OF THE TRUSTEE AND
THE EXACT DATE OF THE TRUST AGREEMENT.

I understand that I may change these beneficiary designations only by filing a
new written designation with Atlantic Coast Federal. I further understand that
the designations will be automatically revoked if the beneficiary predeceases
me, or, if I have named my spouse as beneficiary, in the event of the
dissolution of our marriage.

                                           Consented to by Participant's spouse:
Participant's                              Spouse's
Signature         ______________________   Signature     _______________________

Date              ______________________   Date          _______________________

Accepted by Atlantic Coast Federal this ____ day of ______, 200__.

By:               ______________________

Title:            ______________________

                                        5<PAGE>

                              CHEVIOT SAVINGS BANK

                      DIRECTORS DEFERRED COMPENSATION PLAN

            (As Amended and Restated Effective as of March 16, 2004)

<PAGE>

<TABLE>
<CAPTION>

                                    TABLE OF CONTENTS
                                    -----------------

<S>                                                                                    <C>
ARTICLE I - DEFINITIONS.................................................................1

ARTICLE II - PLAN PARTICIPANTS..........................................................2
    SECTION 2.1 - MEMBERS OF BOARD ON EFFECTIVE DATE....................................2
    SECTION 2.2 - MEMBERS OF BOARD AFTER EFFECTIVE DATE.................................2
    SECTION 2.3 - DURATION OF PARTICIPATION.............................................2

ARTICLE III - BENEFIT AMOUNT............................................................2
    SECTION 3.1 - BENEFIT AMOUNT WHEN BENEFIT IS PAID IN NORMAL FORM....................2
    SECTION 3.2 - BENEFIT AMOUNT WHEN BENEFIT IS PAID OTHER THAN IN NORMAL FORM.........3
    SECTION 3.3 - BENEFIT AMOUNT WHEN SINGLE SUM PAYMENT IS MADE
                      IN LIEU OF REMAINING ANNUAL INSTALLMENTS..........................3
    SECTION 3.4 - ACTUARIAL EQUIVALENCE FACTOR..........................................3

ARTICLE IV - DISTRIBUTION OF PLAN BENEFIT...............................................3
    SECTION 4.1 - GENERAL RULES AS TO PAYMENT OF BENEFIT................................3
    SECTION 4.2 - EFFECT OF CHANGE IN CONTROL ON PAYMENT OF BENEFIT.....................4
    SECTION 4.3 - EFFECT OF DEATH OF PARTICIPANT ON PAYMENT OF BENEFIT..................4
    SECTION 4.4 - FORFEIT OF BENEFIT IF PARTICIPANT VIOLATES STANDARDS OF CONDUCT.......4
    SECTION 4.5 - TAX WITHHOLDING.......................................................5
    SECTION 4.6 - DATE "AS OF" WHICH PAYMENT IS MADE....................................5
    SECTION 4.7 - FACILITY OF PAYMENT...................................................5
    SECTION 4.8 - ADDRESSES REQUIRED TO BE KEPT CURRENT.................................5
    SECTION 4.9 - APPLICABLE BENEFIT PROVISIONS.........................................6

ARTICLE V - ADMINISTRATION OF PLAN......................................................6
    SECTION 5.1 - DESIGNATION OF ADMINISTRATOR..........................................6
    SECTION 5.2 - ADMINISTRATIVE EXPENSES...............................................6
    SECTION 5.3 - POWERS OF ADMINISTRATOR...............................................6
    SECTION 5.4 - INDEMNIFICATION OF ADMINISTRATOR......................................7
    SECTION 5.5 - CLAIMS PROCEDURES.....................................................7

ARTICLE VI - AMENDMENT AND TERMINATION..................................................8

ARTICLE VII - NO FUNDING OF BENEFITS....................................................8

ARTICLE VIII - MISCELLANEOUS............................................................8
    SECTION 8.1 - ACTIONS OF COMPANY....................................................8
    SECTION 8.2 - NO ASSIGNMENT OF BENEFITS PERMITTED...................................8
    SECTION 8.3 - REEMPLOYMENT OR CONTINUED EMPLOYMENT..................................9
    SECTION 8.4 - APPLICABLE LAW........................................................9
    SECTION 8.5 - PLAN YEAR.............................................................9
    SECTION 8.6 - SEPARABILITY OF PROVISIONS............................................9

                                               i
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

<S>                                                                                    <C>
    SECTION 8.7 - HEADINGS AND COUNTERPARTS.............................................9
    SECTION 8.8 - NO RIGHT TO BOARD MEMBERSHIP..........................................9
    SECTION 8.9 - MERGER OR CONSOLIDATION OF COMPANY....................................9
    SECTION 8.10 - PLAN BINDING ON SUCCESSORS..........................................10
    SECTION 8.11 - NOTICES.............................................................10
    SECTION 8.12 - DEFINITION OF CHANGE IN CONTROL.....................................10

                                               ii
</TABLE>

<PAGE>

                              CHEVIOT SAVINGS BANK
                              --------------------
                      DIRECTORS DEFERRED COMPENSATION PLAN
                      ------------------------------------

            (As Amended and Restated Effective as of March 16, 2004)

Effective as of March 31, 2003, CHEVIOT SAVINGS BANK adopted the CHEVIOT SAVINGS
BANK DIRECTORS DEFERRED COMPENSATION PLAN for members of its Board in order to
provide retirement pay for the Board's members. CHEVIOT SAVINGS BANK hereby
amends and restates the CHEVIOT SAVINGS BANK DIRECTORS DEFERRED COMPENSATION
PLAN effective as of March 16, 2004. The terms of the Plan as amended and
restated are as set forth herein.

                                    ARTICLE I

                                   DEFINITIONS

        For purposes of the Plan, the following terms shall have the meanings
hereinafter set forth unless the context otherwise requires:

        1.1     "ADMINISTRATOR" shall mean the person who is designated as the
Administrator of the Plan under the provisions of Section 5.1 below.

        1.2     "BENEFICIARY" shall mean, with respect to any Participant, the
person(s), trust(s), or entity(ies) designated by the Participant, on any
writing approved or prepared by the Administrator, to receive any benefit
payable under the Plan to the Participant's Beneficiary after the Participant's
death. If more than one person, trust, and/or entity is designated as the
Participant's Beneficiary, such writing shall also indicate the share of any
benefit payable under the Plan to the Participant's Beneficiary that is to be
paid to each such person, trust, and/or entity. If a Participant fails to
designate a Beneficiary in any such writing, or if for any reason such
designation is not effective, his or her "Beneficiary" shall be his or her
estate.

        1.3     "BOARD" shall mean the Board of Directors of the Company.

        1.4     "CHANGE IN CONTROL" shall have the meaning described for such
term in Section 8.12 below.

        1.5     "COMPANY" shall mean the Cheviot Savings Bank, or any legal
successor thereto.

        1.6     "EFFECTIVE AMENDMENT DATE" shall mean March 16, 2004 and refers
to the effective date of the amendment and restatement of the Plan that is
contained in this document.

        1.7     "EFFECTIVE DATE" shall mean March 31, 2003 and refers to the
original effective date of the Plan.

        1.8     "PARTICIPANT" shall mean any person who is a participant under
the provisions of Article II below.

                                       1
<PAGE>

        1.9     "PLAN" shall mean the plan set forth in this document, which
plan is named the Cheviot Savings Bank Directors Deferred Compensation Plan.
Unless the context otherwise requires, any reference herein to the "Plan" also
refers to the Plan as in effect from the Effective Date to the Effective
Amendment Date.

        1.10    "SERVICE" shall mean, with respect to any person, the aggregate
total period after the Effective Date during which the person is a member of the
Board. If the person has post-Effective Date periods of Board membership
interrupted by a period during which he or she is not a Board member, then such
separate periods of Board membership shall be aggregated in determining the
person's Service. In performing such aggregation, the aggregation of two or more
less-than-one month periods of Board membership shall be made on the basis that
30 days constitute one month of Service.

                                   ARTICLE II

                                PLAN PARTICIPANTS

        SECTION 2.1     MEMBERS OF BOARD ON EFFECTIVE DATE. Each person who was
a member of the Board on the Effective Date became a participant in the Plan on
the Effective Date.

        SECTION 2.2     MEMBERS OF BOARD AFTER EFFECTIVE DATE. Each person who
was not a member of the Board on the Effective Date but later became or becomes
a member of the Board shall become a participant in the Plan only if he or she
completes ten years of Service and is a member of the Board on the last day of a
Plan Year that ends after the date on which he or she completes such ten years
of Service. A person who meets such requirements shall become a participant in
the Plan on the last day of the first Plan Year that ends after the date on
which he or she completes ten years of Service and on the last day thereof he or
she is a member of the Board.

        SECTION 2.3     DURATION OF PARTICIPATION. A person who became or
becomes a participant under either Section 2.1 above or Section 2.2 above shall
be referred to as a "Participant" under this Plan from the first date he or she
became or becomes a participant in the Plan under either Section 2.1 above or
Section 2.2 above until the entire benefit he or she is due under the Plan has
been paid or forfeited under the subsequent terms of the Plan.

                                   ARTICLE III

                                 BENEFIT AMOUNT

        SECTION 3.1     BENEFIT AMOUNT WHEN BENEFIT IS PAID IN NORMAL FORM. If
any Plan benefit that relates to a Participant is paid under the provisions of
Article IV below in the normal form, the amount of each annual installment
payment of such form shall be $11,400. For purposes of the immediately preceding
sentence, the "normal form" means, with respect to any Plan benefit that relates
to a Participant, ten consecutive annual payments of cash, the first

                                       2
<PAGE>

annual installment of which is made as of the date of the Participant's 70th
birthday and each subsequent annual installment of which is made as of an annual
anniversary of such date.

        SECTION 3.2     BENEFIT AMOUNT WHEN BENEFIT IS PAID OTHER THAN IN NORMAL
FORM. If any Plan benefit that relates to a Participant is paid, under the
provisions of Article IV below, in a form of payment that is not the normal form
(i.e., it is paid in either (i) the form of a single sum cash payment made as of
any date or (ii) the form of ten consecutive annual cash payments the first
annual installment of which is made as of any date other than the Participant's
70th birthday), then the single sum amount or the amount of each annual
installment payment, as the case may be, of such form of payment shall be equal
to the amount that (as of the date as of which the single sum payment or the
first annual installment, as the case may be, is made) makes the Participant's
Plan benefit payable in such form of payment actuarially equivalent to the then
present value of the normal form of the Participant's Plan benefit.

        SECTION 3.3     BENEFIT AMOUNT WHEN SINGLE SUM PAYMENT IS MADE IN LIEU
OF REMAINING ANNUAL INSTALLMENTS. If a Participant's Plan benefit is being paid
in any form that makes annual installment payments but, under the provisions of
Article IV below, such annual installments are stopped and a final single sum
cash payment made in lieu of continuing the installment payments, then the final
single sum amount shall be equal to the amount that (as of the date as of which
such single sum payment is made) makes such single sum payment actuarially
equivalent to the then present value of the remaining annual installment
payments that had not been paid.

        SECTION 3.4     ACTUARIAL EQUIVALENCE FACTOR. For all purposes of the
Plan, the actuarial equivalence of any payment form of a Participant's Plan
benefit other than the normal form to the present value of the normal form of
the Participant's Plan benefit, or to the present value of a remaining stream of
installment payments under an annual installment payment form, shall be
determined on the sole basis of an interest rate assumption of 7% per annum,
compounded annually. No mortality assumption or other factor (other than the
interest rate assumption set forth in the immediately preceding sentence) shall
be used in determining such actuarial equivalence.

                                   ARTICLE IV

                          DISTRIBUTION OF PLAN BENEFIT

        SECTION 4.1     GENERAL RULES AS TO PAYMENT OF BENEFIT. Except as is
otherwise provided in the subsequent provisions of this Article IV, a
Participant shall receive a benefit under the Plan. The following provisions of
this Section 4.1 describe the form in which a Participant's benefit under the
Plan will be paid and the date as of which the benefit will begin to be paid or
be paid in its entirety.

                (a)     Except as is provided in paragraph (b) of this Section
4.1, the Participant's benefit under the Plan shall be paid in the form of ten
annual installment payments of cash. The first such annual installment payment
shall be made as of the Participant's commencement date

                                       3
<PAGE>

(as defined in paragraph (c) of this Section 4.1), and each subsequent annual
installment payment shall be made as of an annual anniversary of such
commencement date. The amount of each annual installment payment shall be
determined under the provisions of Article III above.

                (b)     The Participant may, no later than one year before his
or her commencement date (as defined in paragraph (c) of this Section 4.1),
elect in a written notice he or she provides to the Administrator that his or
her Plan benefit should be paid in the form of a single sum cash payment (in
lieu of having such benefit paid in the form of ten annual installments). Any
such election shall be irrevocable. If such election is made by the Participant,
then, notwithstanding the provisions of paragraph (a) of this Section 4.1 but
still subject to the subsequent provisions of this Article IV, the Participant's
Plan benefit shall be paid in the form of a single sum payment that is made as
of the Participant's commencement date. The amount of such single sum payment
shall be determined under the provisions of Article III above.

                (c)     For all purposes of this Section 4.1, the Participant's
"commencement date" shall be the later of:

                        (1)     the Participant's 65th birthday; or

                        (2)     the earlier of (i) the date on which the
Participant ceases to be a member of the Board or (ii) the Participant's 70th
birthday.

        SECTION 4.2     EFFECT OF CHANGE IN CONTROL ON PAYMENT OF BENEFIT.
Notwithstanding the foregoing provisions of this Article IV but still subject to
the subsequent provisions of this Article IV, if a Change in Control occurs
after a Plan benefit begins to be paid to a Participant in the form of ten
annual installment payments pursuant to the foregoing provisions of this Article
IV or before any part of a Plan benefit has been paid to him or her at all, then
any such installment payments shall cease (if they had begun) and, instead of
any other Plan benefit payment described in the foregoing provisions of this
Article IV, a single sum cash payment shall be made to the Participant as of the
date of the Change in Control. The amount of such single sum payment shall be
determined under the provisions of Article III above.

        SECTION 4.3     EFFECT OF DEATH OF PARTICIPANT ON PAYMENT OF BENEFIT.
Notwithstanding the foregoing provisions of this Article IV but still subject to
the subsequent provisions of this Article IV, if a Participant dies after a Plan
benefit begins to be paid to him or her in the form of ten annual installment
payments pursuant to the foregoing provisions of this Article IV or before any
part of a Plan benefit has been paid to him or her at all, then any such
installment payments shall cease (if they had begun) and, instead of any other
Plan benefit payment described in the foregoing provisions of this Article IV, a
single sum cash payment shall be made to the Participant's Beneficiary as of the
date of the Participant's death. The amount of such single sum payment shall be
determined under the provisions of Article III above.

        SECTION 4.4     FORFEIT OF BENEFIT IF PARTICIPANT VIOLATES STANDARDS OF
CONDUCT. Notwithstanding any other provision of this Plan (including the
forgoing provisions of this

                                       4
<PAGE>

Article IV and the provisions of Article III above) to the contrary, a
Participant shall forfeit any right that he or she may otherwise have to a
benefit under the Plan and any right to the future payment of a Plan benefit
(or, if a Plan benefit has begun to be paid to the Participant in the form of
ten annual installment payments, any right to any annual installments that have
not yet been paid) if and when he or she (i) acts in a personally dishonest
manner when performing any of his or her duties for the Company, (ii) engages in
willful misconduct in the performance of such duties, (iii) breaches his or her
duties for the Company in order to try to obtain a personal profit, (iv)
intentionally fails or refuses to perform the duties and responsibilities of his
or her position as a Board member, or (v) willfully violates any law, rule, or
regulation (even when not associated with his or her duties for the Company but
not including traffic violations or other minor offenses).

        SECTION 4.5     TAX WITHHOLDING. Notwithstanding any other provision of
the Plan to the contrary, the Company shall have, with respect to any
Participant, the right (without notice to the Participant or his or her
Beneficiary) to withhold from any amount of benefit otherwise payable to the
Participant (or his or her Beneficiary) pursuant to this Plan an amount that the
Company determines is sufficient to satisfy all federal, state, and local tax
withholding requirements that may apply to such benefit payment.

        SECTION 4.6     DATE "AS OF" WHICH PAYMENT IS MADE. The other provisions
of this Article IV provide that any payment that is made under the Plan shall
occur "as of" a specific date. However, while for Plan purposes such payment
shall be treated as if it is paid as of such date, the actual payment may be
made within a reasonable period after such date to the extent required
administratively (in order to determine the amount of the payment, ascertain the
recipient of the payment and his or her address, etc.), notwithstanding any
other provision of this Article IV.

        SECTION 4.7     FACILITY OF PAYMENT. Notwithstanding any other provision
of this Plan, any amount payable under the Plan to any person who is under a
legal disability or who, in the judgment of the Administrator, is unable to
properly manage the person's financial affairs may be paid to the legal
representative of such person or may be applied for the benefit of such person
in any manner which the Administrator may select, and any such payment shall be
deemed to be a payment for such person's account and a complete discharge of all
liability of the Company with respect to the amount so paid.

        SECTION 4.8     ADDRESSES REQUIRED TO BE KEPT CURRENT. Each Participant
or Beneficiary shall keep the Administrator informed of his or her current
address. The Administrator and the Company shall not be obligated to search for
the whereabouts of any person whose address has not been kept current when a
Plan payment is due to be made to such person, and such payment is not required
to be made until such person has provided a current address to the Administrator
(and when thereafter paid shall not be increased by any interest or other amount
to reflect the delay in payment caused by such person's failure to keep the
Administrator apprised of his or her current address).

                                       5
<PAGE>

        SECTION 4.9     APPLICABLE BENEFIT PROVISIONS. Any benefit to which a
Participant becomes entitled (or any death benefit to which such Participant's
Beneficiary becomes entitled) under the Plan shall be determined on the basis of
the provisions of the Plan as in effect as of the earlier of (i) the date on
which the Participant ceases to be a member of the Board or (ii) the date as of
which any payment of a benefit begins to be paid under the Plan to the
Participant (or the Beneficiary) notwithstanding any amendment to the Plan
adopted subsequent to such date, except for subsequent amendments which are by
their specific terms made applicable to such Participant (or Beneficiary).

                                    ARTICLE V

                             ADMINISTRATION OF PLAN

        SECTION 5.1     DESIGNATION OF ADMINISTRATOR. The general administration
of the Plan and the responsibility for carrying out its provisions shall be
placed in the Administrator. The Administrator under the Plan shall be the
Company officer or employee or other individual who (i) is not a member of the
Board, (ii) is designated by the Board as the party to serve as the
administrator of the Plan, and (iii) agrees to serve in such capacity. However,
if at any time no such person serves as the Administrator, then the
Administrator shall be the Company's Vice President of Compliance, provided that
he or she is not a member of the Board. If at any time no person serves as the
Administrator pursuant to either of the two immediately preceding sentences,
then the President of the Company shall serve as the Administrator, regardless
of whether or not he or she is a member of the Board.

        SECTION 5.2     ADMINISTRATIVE EXPENSES. The expenses of administering
the Plan shall be paid by the Company. However, unless otherwise agreed between
the Company and the Administrator, the Administrator shall not receive
compensation for his or her services as such, and, except as required by law, no
bond or other security need be required of him or her in such capacity in any
jurisdiction.

        SECTION 5.3     POWERS OF ADMINISTRATOR. Subject to the limitations of
the Plan, the Administrator may, from time to time, establish rules for the
administration of the Plan and the transaction of its business, prepare all
forms and explanatory material necessary to carry out the Plan, construe and
interpret all provisions of the Plan, decide all questions arising under the
Plan (including those relating to eligibility and the amount, form, and time of
benefit payments under the Plan), and otherwise carry out the purposes of the
Plan. The Administrator may appoint or employ such agents, counsel (including
counsel of the Company), auditors (including auditors of the Company), clerical
help, and actuaries as in the Administrator's judgment may seem reasonable or
necessary for the proper administration of the Plan. The Administrator may
correct errors, however arising, and, as far as possible, adjust any benefit
payments accordingly. The determination of the Administrator as to the
interpretation of the provisions of the Plan or any disputed question shall, if
made in good faith and not contrary to any of the provisions of this Plan, be
conclusive upon all interested parties.

                                       6
<PAGE>

        SECTION 5.4     INDEMNIFICATION OF ADMINISTRATOR. The Company shall
indemnify the Administrator for all expenses and liabilities (including
reasonable attorney's fees) arising out of the administration of the Plan, other
than any expenses or liabilities resulting from such person's own bad faith or
willful misconduct. The foregoing right of indemnification shall be in addition
to any other rights to which such person may be entitled as a matter of law.

        SECTION 5.5     CLAIMS PROCEDURES. If a Participant, a Participant's
Beneficiary, or any other person claiming through a Participant or a Beneficiary
has a dispute as to the failure of the Plan to pay or provide a benefit, as to
the amount of Plan benefit paid, or as to any other matter involving the Plan,
the person may file a claim for the benefit or relief believed by the person to
be due. Such claim must be provided by written notice to the Administrator.

                (a)     The Administrator shall decide any claims made pursuant
to this Section 5.5.

                (b)     If a claim is denied, in whole or in part, notice of the
denial in writing shall be furnished by the Administrator to the claimant within
90 days after receipt of the claim by the Administrator; except that if special
circumstances require an extension of time for processing the claim, the period
in which the Administrator is to furnish the claimant written notice of the
denial shall be extended for up to an additional 90 days (and the Administrator
shall provide the claimant within the initial 90-day period a written notice
indicating the reasons for the extension and the date by which the Administrator
expects to render the final decision).

                (c)     The final notice of denial shall be written in a manner
designed to be understood by the claimant and set forth: (i) the specific
reasons for the denial, (ii) specific reference to pertinent Plan provisions on
which the denial is based, (iii) a description of any additional material or
information necessary for the claimant to perfect the claim and an explanation
of why such material or information is necessary, and (iv) information as to the
steps to be taken if the claimant wishes to appeal such denial of his or her
claim. If no written notice is provided the claimant within the applicable
90-day period or 180-day period, as the case may be, the claimant may assume his
or her claim has been denied and go immediately to the appeal process set forth
in the following paragraphs of this Section 5.5.

                (d)     Any claimant who has a claim denied may appeal the
denied claim to the Administrator. Such an appeal must, in order to be
considered, be filed by written notice to the Administrator within 60 days of
the receipt by the claimant of a written notice of the denial of his or her
initial claim. If any appeal is filed in accordance with such rules, the
claimant, and any duly authorized representative of the claimant, shall be given
the opportunity to review pertinent documents and submit issues and comments in
writing. A formal hearing may be allowed in its discretion by the Administrator
but is not required.

                (e)     Upon any appeal of a denied claim, the Administrator
shall provide a full and fair review of the subject claim and decide the appeal
within 60 days after the filing of the appeal; except that if special
circumstances require an extension of time for processing the appeal, the period
in which the appeal is to be decided shall be extended for up to an additional

                                       7
<PAGE>

60 days (and the Administrator shall provide the claimant written notice of the
extension prior to the end of the initial 60-day period).

                (f)     The decision on appeal shall be set forth in a writing
designed to be understood by the claimant, specify the reasons for the decision
and references to pertinent Plan provisions on which the decision is based, and
be furnished to the claimant by the Administrator within the 60-day period or
120-day period, as is applicable, described above.

                (g)     The Administrator may prescribe additional rules which
are consistent with the other provisions of this Section 5.5 in order to carry
out the Plan's claims procedures.

                                   ARTICLE VI

                            AMENDMENT AND TERMINATION

        The Company may, without the consent of any Participant or Beneficiary,
amend or terminate the Plan at any time; provided that no amendment shall be
made or act of termination taken which adversely affects the right of a
Participant (or his or her Beneficiary) to any benefit to which he or she is
entitled under the Plan as of the date of such amendment or termination.

                                   ARTICLE VII

                             NO FUNDING OF BENEFITS

        The Company shall not fund, and shall have no obligation to fund, by the
investment in any trust or account or by any other means, its obligations to
Participants and their Beneficiaries hereunder. Instead, all benefits shall be
paid by the Company solely from its general assets.

                                  ARTICLE VIII

                                  MISCELLANEOUS

        SECTION 8.1     ACTIONS OF COMPANY. Any action permitted to be taken by
the Company under this Plan, including but not limited to amending or
terminating the Plan, may be taken either by the Board (pursuant to a written
resolution adopted at a meeting of the Board or in a writing signed by all
members of the Board) or by any officer of the Company to whom the power to act
for the Company with respect to such matter is delegated by the Board (pursuant
to a written resolution adopted at a meeting of the Board or in a writing signed
by all members of the Board).

        SECTION 8.2     NO ASSIGNMENT OF BENEFITS PERMITTED. Except to the
extent otherwise required by applicable law, no Participant or Beneficiary shall
have any right to alienate, commute, anticipate, assign, pledge, encumber, or
dispose of the right to receive any payments required to be made by the Company
hereunder, which payments and the right to receive them are expressly declared
to be nonassignable and nontransferable. Unless otherwise required by

                                       8
<PAGE>

applicable law, the Company shall not have any further obligation to make any
payments otherwise required of it hereunder in the event of any attempt to
assign or transfer any such payment or the right to receive them.

        SECTION 8.3     REEMPLOYMENT OR CONTINUED EMPLOYMENT. If a Participant
ceases to be member of the Board but again becomes a member of the Board before
any payment of a Plan benefit is made to him or her, then, notwithstanding any
other provision of this Plan, no payment shall be made by reason of or in
connection with his or her earlier ceasing to be a Board member and a Plan
benefit shall only be determined and payable under the terms of the Plan without
regard to the fact that the Participant had earlier ceased to be a member of the
Board. On the other hand, if a Participant ceases to be member of the Board but
again becomes a member of the Board after any payment of a Plan benefit is made
to him or her, or if any payment of a Plan benefit is made to the Participant
while he or she is a Board member and he or she continues to be member of the
Board after such payment, then, notwithstanding any other provision of this
Plan, such payment of his or her Plan benefit shall not be suspended or in any
way affected by his or her again becoming or his or her continuing to be a
member of the Board but no additional Plan benefit shall be payable at all by
reason of or in connection with the later period in which the Participant again
serves or continues to serve as a Board member.

        SECTION 8.4     APPLICABLE LAW. The Plan shall be governed by the laws
of the State of Ohio and any applicable federal law.

        SECTION 8.5     PLAN YEAR. The plan year of the Plan, which is the
period on which records of the Plan are maintained, is a twelve month period
that ends each March 31.

        SECTION 8.6     SEPARABILITY OF PROVISIONS. If any provision of the Plan
is held invalid or unenforceable, such invalidity or unenforceability shall not
affect any other provisions hereof, and the Plan shall be construed and enforced
as if such invalid or unenforceable provision had not been included.

        SECTION 8.7     HEADING AND COUNTERPARTS. Headings used throughout the
Plan are for convenience only and shall not be given legal significance. The
Plan may be executed in any number of counterparts, each of which shall be
deemed an original. All counterparts shall constitute one and the same
instrument, which shall be sufficiently evidenced by any one thereof.

        SECTION 8.8     NO RIGHT TO BOARD MEMBERSHIP. This Plan shall not
provide any member of the Board with a right to future membership on the Board,
and the existence of this Plan and any benefit provided under or in connection
with this Plan shall not affect the right of the Company's shareholders to
remove any member of the Board.

        SECTION 8.9     MERGER OR CONSOLIDATION OF COMPANY. The Company agrees
that, should it merge or consolidate into any other corporation or organization,
or in any way be acquired by any other corporation or organization, it shall
require and ensure that such other corporation or organization assumes the
duties and obligations of the Company under this Plan.

                                       9
<PAGE>

        SECTION 8.10    PLAN BINDING ON SUCCESSORS. The Plan and the provisions
hereunder shall be binding upon (i) each Participant and his or her Beneficiary,
heirs, executor, administrator, and successor and (ii) the Company and its
successors.

        SECTION 8.11    NOTICES. Any notice required under the Plan shall be
made in writing and delivered by personal delivery, mail (certified U.S. mail,
postage prepaid), or electronic means, and it shall be deemed to be received
only when actually delivered or so mailed. Notices to the Company or the
Administrator should be directed to the attention of the Administrator and
addressed to the Administrator at the Company's principal office.

        SECTION 8.12    DEFINITION OF CHANGE IN CONTROL. A "Change in Control"
means, for all purposes of the Plan, the occurrence of any one of the following
events:

                (a)     A majority of the Board becomes as of any date composed
of members who are not Incumbent Directors. For purposes hereof, an "Incumbent
Director" means, as of any date, any individual who is a member of the Board as
of such date and either (i) who was a member of the Board at the beginning of
the 36 consecutive month period ending on such date or (ii) who became a member
of the Board subsequent to the beginning of such 36 consecutive month period and
whose appointment, election, or nomination for election was approved by a vote
of at least two-thirds of the members of the Board who were, as of the date of
such vote, Incumbent Directors (either by a specific vote or by approval of the
proxy statement of the Company in which such person is named as a nominee for
director). It is provided, however, that no individual initially appointed,
elected, or nominated as a member of the Board as a result of an actual or
threatened election contest with respect to Board members or as a result of any
other actual or threatened solicitation of proxies or consents by or on behalf
of any person other than the Board shall ever be deemed to be an Incumbent
Director;

                (b)     Any person becomes a beneficial owner, directly or
indirectly, of securities of the Company representing 25% or more of the
combined voting power of the Company's then outstanding securities eligible to
vote for the election of the Board (for purposes of this Section 8.12, the
"Company Voting Securities"). It is provided, however, that the event described
in this paragraph (b) shall not be deemed to be a Change in Control if such
event results from either of the following: (i) the acquisition of any Company
Voting Securities by the Company or any subsidiaries of it and/or by any
employee benefit plan or related trust sponsored or maintained by the Company or
any subsidiaries of it (provided that, if after such acquisition by the Company,
any of its subsidiaries, and/or such employee benefit plan or trust, such person
becomes the beneficial owner of additional Company Voting Securities that
increases the percentage of outstanding Company Voting Securities beneficially
owned by such person, a Change in Control shall then occur); or (ii) the control
of general proxies by the Board or the sale of Company Voting Securities in a
second-step conversion of the Company (or, if all or substantially all of the
common shares of the Company are owned by another corporation, such other
corporation) from a mutual holding company to a full stock company;

                                       10
<PAGE>

                (c)     Any person acquires "conclusive control" of the Company
within the meaning of 12 CFR Sections 574.4(a) and 574.4(b), that has not been
rebutted in accordance with 12 CFR Section 574.4(c); or

                (d)     The shareholders of the Company approve a plan of
complete liquidation or dissolution of the Company.

For purposes of this Section 8.12, the term "person" refers to an individual,
corporation, partnership, trust association, or other organization, acting alone
or "acting in concert" within the meaning of 12 CFR Part 574; except that, when
the effect of a Change in Control is being applied to a specific Participant,
the term "person" shall not be deemed to refer to the Participant and/or any
other person or entity with whom the Participant is "acting in concert" within
the meaning of 12 CFR Part 574.

        IN ORDER TO ADOPT THIS PLAN AMENDMENT AND RESTATEMENT, the Company has
caused its name to be subscribed to this Plan document on this __ day of
_____________, 2004.

                                          CHEVIOT SAVINGS BANK

                                          By _____________________________
                                               Thomas J. Linneman, CEO

                                       11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]