Document:

<PAGE>

                        DIRECTOR SUPPLEMENTAL RETIREMENT
                   INCOME AND DEFERRED COMPENSATION AGREEMENT
                              FOR SALVATORE ROMANO

                               MAGYAR SAVINGS BANK
                            NEW BRUNSWICK, NEW JERSEY

                                FEBRUARY 1, 2004

                  FINANCIAL INSTITUTION CONSULTING CORPORATION
                          700 COLONIAL ROAD, SUITE 102
                            MEMPHIS, TENNESSEE 38117
                              WATS: 1-800-873-0089
                               FAX: (901) 684-7414
                                 (901) 684-7400

<PAGE>

                        DIRECTOR SUPPLEMENTAL RETIREMENT
                   INCOME AND DEFERRED COMPENSATION AGREEMENT
                              FOR SALVATORE ROMANO

        This Director Supplemental Retirement Income and Deferred Compensation
Agreement (the "Agreement"), effective as of the 1st day of February, 2004,
formalizes the understanding by and between MAGYAR SAVINGS BANK (the "Bank"), a
state chartered savings bank having its principal place of business in New
Brunswick, New Jersey, and SALVATORE ROMANO (hereinafter referred to as
"Director"). All prior non-qualified deferred compensation agreements, including
any and all Joinder Agreements, with respect to Director and MAGYAR SAVINGS
BANK, are hereby superceded and replaced by this Agreement

                              W I T N E S S E T H :

        WHEREAS, the Director serves the Bank as a member of the board; and

        WHEREAS, the Bank recognizes the valuable services heretofore performed
by the Director and wishes to encourage his continued service; and

        WHEREAS, the Director wishes to be assured that he will be entitled to a
certain amount of additional compensation for some definite period of time from
and after retirement from active service with the Bank or other termination of
service and wishes to provide his beneficiary with benefits from and after
death; and

        WHEREAS, the Bank and the Director wish to provide the terms and
conditions upon which the Bank shall pay such additional compensation to the
Director after retirement or other termination of service and/or death benefits
to his beneficiary after death; and

        WHEREAS, the Bank has adopted this Director Supplemental Retirement
Income and Deferred Compensation Agreement which controls all issues relating to
benefits as described herein and;

<PAGE>

        NOW, THEREFORE, in consideration of the premises and of the mutual
promises herein contained, the Bank and the Director agree as follows:

                                    SECTION I
                                   DEFINITIONS

        When used herein, the following words and phrases shall have the
meanings below unless the context clearly indicates otherwise:

1.1     "Accrued Benefit Account" shall be REPRESENTED by the bookkeeping
        entries required to record the Director's (i) Phantom Contributions plus
        (ii) accrued interest, equal to the Interest Factor, earned to-date on
        such amounts. However, neither the existence of such bookkeeping entries
        nor the Accrued Benefit Account itself shall be deemed to create either
        a trust of any kind, or a fiduciary relationship between the Bank and
        the Director or any Beneficiary.

1.2     "Act" means the Employee Retirement Income Security Act of 1974, as
        amended from time to time.

1.3     "Administrator" means the Bank.

1.4     "Bank" means MAGYAR SAVINGS BANK and any successor thereto.

1.5     "Beneficiary" means the person or persons (and their heirs) designated
        as Beneficiary in Exhibit B of this Agreement to whom the deceased
        Director's benefits are payable. If no Beneficiary is so designated,
        then the Director's Spouse, if living, will be deemed the Beneficiary.
        If the Director's Spouse is not living, then the Children of the
        Director will be deemed the Beneficiaries and will take on a per stirpes
        basis. If there are no Children, then the Estate of the Director will be
        deemed the Beneficiary.

1.6     "Benefit Age" means the later of: (i) the Director's sixty-fifth (65th)
        birthday or (ii) the actual date the Director's full-time service with
        the Bank terminates.

                                       3
<PAGE>

1.7     "Benefit Eligibility Date" means the date on which the Director is
        entitled to receive any benefit(s) pursuant to Section(s) III or V of
        this Agreement. It shall be the first day of the month following both
        the attainment of the Directors' Benefit Age and his actual retirement
        from the Board of Directors.

1.8     "Board of Directors" means the board of directors of the Bank.

1.9     "Cause" means termination of the Director's service on the Board of
        Directors due to: (i) actions or inactions which constitute a breach of
        the bylaws of the Bank or (ii) the Director's personal dishonesty,
        willful misconduct, willful malfeasance, breach of fiduciary duty
        involving personal profit, intentional failure to perform stated duties,
        willful violation of any law, rule, regulation (other than traffic
        violations or similar offenses), or final cease-and-desist order,
        material breach of any provision of this Plan, or gross negligence in
        matters of material importance to the Bank.

1.10    "Change in Control" of the Bank shall mean and include the following:
        (1)     a Change in Control of a nature that would be required to be
                reported in response to Item 1(a) of the current report of Form
                8-K, as in effect on the date hereof, pursuant to Section 13 or
                15(d) of the Securities Exchange Act of 1934 (the "Exchange
                Act"); or
        (2)     a change in control of the Bank within the meaning of 12 C.F.R.
                574.4; or
        (3)     a Change in Control at such time as
                (i)     any "person" (as the term is used in sections 13(d) and
                        14(d) of the Exchange Act) is or becomes the "beneficial
                        owner" (as defined in Rule 13d-3 under the Exchange
                        Act), directly or indirectly, of securities of the Bank
                        representing Twenty Percent (20.0%) or more of the
                        combined voting power of the Bank's outstanding
                        securities ordinarily having the right to vote at the
                        election of directors, except for (i) any stock of the
                        Bank purchased by the Holding Company in connection with
                        the conversion of the Bank to stock form, and (ii) any
                        stock purchased by the Bank's Employee Stock Ownership
                        Plan and/or trust; or
                (ii)    individuals who constitute the board of directors on the
                        date hereof (the "Incumbent Board") cease for any reason
                        to constitute at least a majority thereof, provided that
                        any person becoming a director subsequent to the date
                        hereof

                                       4
<PAGE>

                        whose election was approved by a vote of at least
                        three-quarters of the directors comprising the Incumbent
                        Board, or whose nomination for election by the Bank's
                        stockholders was approved by the Bank's Nominating
                        Committee which is comprised of members of the Incumbent
                        Board, shall be, for purposes of this clause (ii),
                        considered as though he were a member of the Incumbent
                        Board; or
                (iii)   merger, consolidation, or sale of all or substantially
                        all of the assets of the bank occurs; or
                (iv)    a proxy statement is issued soliciting proxies from the
                        members (or stockholders) of the Bank by someone other
                        than the current management of the Bank, seeking member
                        (or stockholder) approval of a plan of reorganization,
                        merger, or consolidation of the Bank with one or more
                        corporations as a result of which the outstanding shares
                        of the class of the Bank's securities are exchanged for
                        or converted into cash or property or securities not
                        issued by the Bank.

        For purposes of this Subsection 1.10, the term "stockholder(s)" and
        "members" shall be considered one and the same. For purposes of this
        Subsection 1.10, the term "Holding Company" shall mean the holding
        company (including any successor thereto) organized to acquire the
        capital stock of the Bank upon the Bank's conversion from mutual to
        stock form.

1.11    "Children" means all natural or adopted children of the Director and
        issue of any predeceased child or children.

1.12    "Code" means the Internal Revenue Code of 1986, as amended from time to
        time.

1.13    "Contribution(s)" means those annual total contributions comprised of
        both the Elective Contributions and the Emeritus Contributions which the
        Bank is required to make to the Retirement Income Trust Fund on behalf
        of the Director in accordance with Subsection 2.1(a) and in the amounts
        set forth in Exhibit A of the Agreement. Such Contributions, for the
        first Plan Year, shall include any and all amounts accrued by the Bank
        to pay the benefits promised to the Director under any prior
        non-qualified deferred compensation agreements including any Joinder
        Agreements previously executed by the Bank and the Director.

                                       5
<PAGE>

1.14    (a) "Disability Benefit" means the benefit payable to the Director
        following a determination, in accordance with Subsection 6.1(a), that he
        is no longer able, properly and satisfactorily, to perform his duties at
        the Bank.

        (b) "Disability Benefit-Supplemental" (if applicable) means the benefit
        payable to the Director's Beneficiary upon the Director's death in
        accordance with Subsection 6.1(b).

1.15    "Effective Date" of this Agreement shall be February 1, 2004.

1.16    "Elective Contribution" shall refer to the Director's voluntary monthly
        pre-tax deferral of board fees, committee fees and/or retainer plus
        interest compounded annually at a rate equal to the Interest Factor. The
        Director may elect to change his voluntary deferral amount by submitting
        to the Bank a Notice of Adjustment of Elective Contribution thirty (30)
        days prior to the end of any Plan Year.

1.17    "Emeritus Contribution" shall refer to the amounts necessary to support
        an annual amount payable to the Director at Benefit Age based upon a
        percentage, as stated in Appendix A, of the Director's total board fees,
        committee fees and/or retainer in the twelve months prior to the
        Director's Benefit Eligibility Date. The percentage shall be determined
        by the following formula: ten percent (10%) plus two and one-half
        percent (2 1/2%) for each year of service as a Director, with a minimum
        of fifty percent (50%), provided the Director has served for at least
        five (5) years, and a maximum of sixty percent (60%). Notwithstanding
        the foregoing, any Director who serves as Board Chairman for a five-year
        term (other than the current Chairman) shall be entitled to receive
        seventy-five percent (75%).

1.18    "Estate" means the estate of the Director.

1.19    "Interest Factor" means monthly compounding, discounting or annuitizing,
        as applicable, at a rate set forth in Exhibit A.

1.20    "Payout Period" means the time frame during which certain benefits
        payable hereunder shall be distributed. Payments shall be made in
        monthly installments commencing on the first day of the

                                       6
<PAGE>

        month following the occurrence of the event which triggers distribution
        and continuing for a period of one hundred eighty (180) months. Should
        the Director make a Timely Election to receive a lump sum benefit
        payment, the Director's Payout Period shall be deemed to be one (1)
        month.

1.21    "Phantom Contributions" means those annual Contributions which the Bank
        is no longer required to make on behalf of the Director to the
        Retirement Income Trust Fund. Rather, once the Director has exercised
        the withdrawal rights provided for in Subsection 2.2, the Bank shall be
        required to record the annual amounts set forth in Exhibit A of the
        Agreement in the Director's Accrued Benefit Account, pursuant to
        Subsection 2.1.

1.22    "Plan Year" shall mean the twelve (12) month period commencing January 1
        and ending December 31.

1.23    "Retirement Income Trust Fund" means the trust fund account established
        by the Director and into which annual Contributions will be made by the
        Bank on behalf of the Director pursuant to Subsection 2.1. The
        contractual rights of the Bank and the Director with respect to the
        Retirement Income Trust Fund shall be outlined in a separate writing to
        be known as the Salvatore Romano Grantor Trust agreement.

1.24    "Spouse" means the individual to whom the Director is legally married at
        the time of the Director's death, provided, however, that the term
        "Spouse" shall not refer to an individual to whom the Director is
        legally married at the time of death if the Director and such individual
        have entered into a formal separation agreement or initiated divorce
        proceedings.

1.25    "Supplemental Retirement Income Benefit" means an annual amount (BEFORE
        taking into account federal and state income taxes), payable in monthly
        installments throughout the Payout Period. Such benefit is projected
        pursuant to the Agreement for the purpose of determining the
        Contributions to be made to the Retirement Income Trust Fund (or Phantom
        Contributions to be recorded in the Accrued Benefit Account). The annual
        Contributions and Phantom Contributions have been actuarially
        determined, using the assumptions set forth in Exhibit A, in order to
        fund for the projected Supplemental Retirement Income Benefit. The
        Supplemental

                                       7
<PAGE>

        Retirement Income Benefit for which Contributions (or Phantom
        Contributions) are being made (or recorded) is set forth in Exhibit A.

1.26    "Timely Election" means the Director has made an election to change the
        form of his benefit payment(s) by filing with the Administrator a Notice
        of Election to Change Form of Payment (Exhibit C of this Agreement). In
        the case of benefits payable from the Accrued Benefit Account, such
        election shall have been made prior to the event which triggers
        distribution and at least two (2) years prior to the Director's Benefit
        Eligibility Date. In the case of benefits payable from the Retirement
        Income Trust Fund, such election may be made at any time.

                                   SECTION II
                                 BENEFIT FUNDING

2.1     (a) RETIREMENT INCOME TRUST FUND AND ACCRUED BENEFIT ACCOUNT. The
        Director shall establish the Salvatore Romano Grantor Trust into which
        the Bank shall be required to make annual Contributions on the
        Director's behalf, pursuant to Exhibit A and this Section II of the
        Agreement. A trustee shall be selected by the Director. The trustee
        shall maintain an account, separate and distinct from the Director's
        personal contributions, which account shall constitute the Retirement
        Income Trust Fund. The trustee shall be charged with the responsibility
        of investing all contributed funds. Distributions from the Retirement
        Income Trust Fund of the Salvatore Romano Grantor Trust may be made by
        the trustee to the Director, for purposes of payment of any income or
        employment taxes due and owing on Contributions by the Bank to the
        Retirement Income Trust Fund, if any, and on any taxable earnings
        associated with such Contributions which the Director shall be required
        to pay from year to year, under applicable law, prior to actual receipt
        of any benefit payments from the Retirement Income Trust Fund. If the
        Director exercises his withdrawal rights pursuant to Subsection 2.2, the
        Bank's obligation to make Contributions to the Retirement Income Trust
        Fund shall cease and the Bank's obligation to record Phantom
        Contributions in the Accrued Benefit Account shall immediately commence
        pursuant to Exhibit A and this Section II of the Agreement. To the
        extent this Agreement is inconsistent with the Salvatore Romano Grantor
        Trust Agreement, the Salvatore Romano Grantor Trust Agreement shall
        supersede this Agreement.

                                       8
<PAGE>

        The annual Contributions (or Phantom Contributions) required to be made
        by the Bank to the Retirement Income Trust Fund (or recorded by the Bank
        in the Accrued Benefit Account) have been actuarially determined and are
        set forth in Exhibit A which is attached hereto and incorporated herein
        by reference. Contributions shall be made by the Bank to the Retirement
        Income Trust Fund (i) within seventy-five (75) days of establishment of
        such trust, and (ii) within the first thirty (30) days of the beginning
        of each subsequent Plan Year, unless this Section expressly provides
        otherwise. Phantom Contributions, if any, shall be recorded in the
        Accrued Benefit Account within the first thirty (30) days of the
        beginning of each applicable Plan Year, unless this Section expressly
        provides otherwise. Phantom Contributions shall accrue interest at a
        rate equal to the Interest Factor, during the Payout Period, until the
        balance of the Accrued Benefit Account has been fully distributed.
        Interest on any Phantom Contribution shall not commence until such
        Payout Period commences.

        The Administrator shall review the schedule of annual Contributions (or
        Phantom Contributions) provided for in Exhibit A (i) within thirty (30)
        days prior to the close of each Plan Year and (ii) if the Director is
        employed by the Bank until attaining Benefit Age, on or immediately
        before attainment of such Benefit Age. Such review shall consist of an
        evaluation of the accuracy of all assumptions used to establish the
        schedule of Contributions (or Phantom Contributions). Provided that (i)
        the Director has not exercised his withdrawal rights pursuant to
        Subsection 2.2 and (ii) the investments contained in the Retirement
        Income Trust Fund have been deemed reasonable by the Bank, the
        Administrator shall prospectively amend or supplement the schedule of
        Contributions provided for in Exhibit A should the Administrator
        determine during any such review that AN INCREASE in or SUPPLEMENT TO
        the schedule of Contributions is necessary in order to adequately fund
        the Retirement Income Trust Fund so as to provide an annual benefit (or
        to provide the lump sum equivalent of such benefit, as applicable) equal
        to the Supplemental Retirement Income Benefit, on an after-tax basis,
        commencing at Benefit Age and payable for the duration of the Payout
        Period.

        (b)     WITHDRAWAL RIGHTS NOT EXERCISED.
        (1)     CONTRIBUTIONS MADE ANNUALLY
        If the Director does not exercise any withdrawal rights pursuant to
        Subsection 2.2, the annual Contributions to the Retirement Income Trust
        Fund shall continue each year, unless this

                                       9
<PAGE>

        Subsection 2.1(b) specifically states otherwise, until the earlier of
        (i) the last Plan Year that Contributions are required pursuant to
        Exhibit A, or (ii) the Plan Year of the Director's termination of
        service.

        (2)     TERMINATION FOLLOWING A CHANGE IN CONTROL
        If the Director does not exercise his withdrawal rights pursuant to
        Subsection 2.2 and a Change in Control occurs at the Bank, followed
        within thirty-six (36) months by either (i) the Director's involuntary
        termination of service, or (ii) Director's voluntary termination of
        service after: (A) a material change in the Director's function, duties,
        or responsibilities, which change would cause the Director's position to
        become one of lesser responsibility, importance, or scope from the
        position the Director held at the time of the Change in Control, (B) a
        relocation of the Director's principal place of service by more than
        thirty (30) miles from its location prior to the Change in Control, or
        (C) a material reduction in the benefits and perquisites to the Director
        from those being provided at the time of the Change in Control, the
        Emeritus Contributions as set forth on Schedule A shall continue to be
        required of the Bank. The Bank shall be required to make an immediate
        lump sum Contribution to the Director's Retirement Income Trust Fund in
        an amount equal to: (i) the full Emeritus Contribution required for the
        Plan Year in which such termination occurs, if not yet made, plus (ii)
        the present value (computed using a discount rate equal to the Interest
        Factor) of all remaining Emeritus Contributions to the Retirement Income
        Trust Fund, and (iii) the present value (computed using the a discount
        rate equal to the Interest Factor) of the interest only component of the
        Elective Contribution; provided, however, that, if necessary, an
        additional amount shall be contributed to the Retirement Income Trust
        Fund which is sufficient to provide the Director with after-tax benefits
        (assuming a constant tax rate equal to the rate in effect as of the date
        of Director's termination) beginning at Benefit Age following such
        termination, equal in amount to that benefit which would have been
        payable to the Director if no secular trust had been implemented and the
        benefit obligation had been accrued under APB Opinion No. 12, as amended
        by FAS 106.

        (3)     TERMINATION FOR CAUSE
        If the Director does not exercise his withdrawal rights pursuant to
        Subsection 2.2, and is terminated for Cause pursuant to Subsection 5.2,
        no further Contribution(s) to the Retirement

                                       10
<PAGE>

        Income Trust Fund shall be required of the Bank, and if not yet made, no
        Contribution shall be required for the Plan Year in which such
        termination for Cause occurs.

        (4)     VOLUNTARY OR INVOLUNTARY TERMINATION OF SERVICE.
        If the Director does not exercise his withdrawal rights pursuant to
        Subsection 2.2, and the Director's service with the Bank is voluntarily
        or involuntarily terminated for any reason, including a termination due
        to disability of the Director but excluding termination for Cause, or
        termination following a Change in Control within thirty-six (36) months
        of such Change in Control, no further Contribution(s) to the Retirement
        Income Trust Fund shall be required of the Bank, and if not yet made, no
        Contribution shall be required for the Plan Year in which such
        termination for Cause occurs; provided, however, that, if necessary, an
        additional amount shall be contributed to the Retirement Income Trust
        Fund which is sufficient to provide the Director with after-tax benefits
        (assuming a constant tax rate equal to the rate in effect as of the date
        of Director's termination) beginning at the Director's Benefit Age
        following such termination, equal in amount to that benefit which would
        have been payable to the Director if no secular trust had been
        implemented and the benefit obligation had been accrued under APB
        Opinion No. 12, as amended by FAS 106.

        (5)     DEATH DURING SERVICE.
        If the Director does not exercise any withdrawal rights pursuant to
        Subsection 2.2, and dies while employed by the Bank, and if, following
        the Director's death, the assets of the Retirement Income Trust Fund are
        insufficient to provide the Supplemental Retirement Income Benefit to
        which the Director is entitled, the Bank shall be required to make a
        Contribution to the Retirement Income Trust Fund equal to the sum of the
        remaining Contributions set forth on Exhibit A, after taking into
        consideration any payments under any life insurance policies that may
        have been obtained on the Director's life by the Retirement Income Trust
        Fund. Such final contribution shall be payable in a lump sum to the
        Retirement Income Trust Fund within thirty (30) days of the Director's
        death.

                                       11
<PAGE>

        (c)     WITHDRAWAL RIGHTS EXERCISED.
        (1)     PHANTOM CONTRIBUTIONS MADE ANNUALLY.
        If the Director exercises his withdrawal rights pursuant to Subsection
        2.2, no further Contributions to the Retirement Income Trust Fund shall
        be required of the Bank. Thereafter, Phantom Contributions shall be
        recorded annually in the Director's Accrued Benefit Account within
        thirty (30) days of the beginning of each Plan Year, commencing with the
        first Plan Year following the Plan Year in which the Director exercises
        his withdrawal rights. Such Phantom Contributions shall continue to be
        recorded annually, unless this Subsection 2.1(c) specifically states
        otherwise, until the earlier of (i) the last Plan Year that Phantom
        Contributions are required pursuant to Exhibit A, or (ii) the Plan Year
        of the Director's termination of service.

        (2)     TERMINATION FOLLOWING A CHANGE IN CONTROL
        If the Director exercises his withdrawal rights pursuant to Subsection
        2.2, Phantom Contributions shall commence in the Plan Year following the
        Plan Year in which the Director first exercises his withdrawal rights.
        If a Change in Control occurs at the Bank, and within thirty-six (36)
        months of such Change in Control, the Director's service is either (i)
        involuntarily terminated, or (ii) voluntarily terminated by the Director
        after: (A) a material change in the Director's function, duties, or
        responsibilities, which change would cause the Director's position to
        become one of lesser responsibility, importance, or scope from the
        position the Director held at the time of the Change in Control, (B) a
        relocation of the Director's principal place of service by more than
        thirty (30) miles from its location prior to the Change in Control, or
        (C) a material reduction in the benefits and perquisites to the Director
        from those being provided at the time of the Change in Control, the
        Phantom Contribution set forth below shall be required of the Bank. The
        Bank shall be required to record a lump sum Phantom Contribution in the
        Accrued Benefit Account within ten (10) days of the Director's
        termination of service equal to (i) the full Emeritus Contribution
        required for the Plan Year in which such termination occurs, if not yet
        made, plus (ii) the present value (computed using a discount rate equal
        to the Interest Factor) of all remaining Emeritus Contributions to the
        Retirement Income Trust Fund, and (iii) the present value (computed
        using the a discount rate equal to the Interest Factor) of the interest
        only component of the Elective Contribution. The amount of such final
        Phantom Contribution shall be actuarially determined based on the
        Phantom Contribution required, at such time, in order to provide a
        benefit via this Agreement equal in amount to that benefit which would
        have been payable to the Director if no

                                       12
<PAGE>

        secular trust had been implemented and the benefit obligation had been
        accrued under APB Opinion No. 12, as amended by FAS 106. (Such actuarial
        determination shall reflect the fact that amounts shall be payable from
        both the Accrued Benefit Account as well as the Retirement Income Trust
        Fund and shall also reflect the amount and timing of any withdrawal(s)
        made by the Director from the Retirement Income Trust Fund pursuant to
        Subsection 2.2.)

        (3)     TERMINATION FOR CAUSE
        If the Director is terminated for Cause pursuant to Subsection 5.2, the
        entire balance of the Director's Accrued Benefit Account at the time of
        such termination, which shall include any Phantom Contributions which
        have been recorded plus interest accrued on such Phantom Contributions,
        shall be forfeited.

        (4)     VOLUNTARY AND INVOLUNTARY TERMINATION OF SERVICE.
        If the Director exercises his withdrawal rights pursuant to Subsection
        2.2, and the Director's service with the Bank is voluntarily or
        involuntarily terminated for any reason including termination due to
        disability of the Director, but excluding termination for Cause, or
        termination following a Change in Control, within thirty (30) days of
        such termination of service, no further Phantom Contributions shall be
        required of the Bank. Interest, at a rate equal to the Interest Factor,
        shall accrue on such Phantom Contributions until the Director's Benefit
        Eligibility Date.

        (5)     DEATH DURING SERVICE.
        If the Director exercises his withdrawal rights pursuant to Subsection
        2.2, and dies while employed by the Bank, Phantom Contributions included
        on Exhibit A shall be required of the Bank. Such Phantom Contributions
        shall commence in the Plan Year following the Plan Year in which the
        Director exercises his withdrawal rights and shall continue through the
        Plan Year in which the Director dies. The Bank shall also be required to
        record a final Phantom Contribution within thirty (30) days of the
        Director's death. The amount of such final Phantom Contribution shall be
        actuarially determined based on the Phantom Contribution required at
        such time (if any), in order to provide a benefit via this Agreement
        equivalent to the Supplemental Retirement Income Benefit commencing
        within thirty (30) days of the date the Administrator receives notice of
        the Director's death and continuing for the duration of the Payout
        Period. (Such actuarial determination shall reflect the fact that
        amounts shall be payable from the Accrued Benefit

                                       13
<PAGE>

        Account as well as the Retirement Income Trust Fund and shall also
        reflect the amount and timing of any withdrawal(s) made by the Director
        pursuant to Subsection 2.2.)

2.2     WITHDRAWALS FROM RETIREMENT INCOME TRUST FUND.
        Exercise of withdrawal rights by the Director pursuant to the Salvatore
        Romano Grantor Trust agreement shall terminate the Bank's obligation to
        make any further Contributions to the Retirement Income Trust Fund, and
        the Bank's obligation to record Phantom Contributions pursuant to
        Subsection 2.1(c) shall commence. For purposes of this Subsection 2.2,
        "exercise of withdrawal rights" shall mean those withdrawal rights to
        which the Director is entitled under Article III of the Salvatore Romano
        Grantor Trust agreement and shall exclude any distributions made by the
        trustee of the Retirement Income Trust Fund to the Director for purposes
        of payment of income taxes in accordance with Subsection 2.1 of this
        Agreement and the tax reimbursement formula contained in the trust
        document, or other trust expenses properly payable from the Salvatore
        Romano Grantor Trust pursuant to the provisions of the trust document.

2.3     BENEFITS PAYABLE FROM RETIREMENT INCOME TRUST FUND
        Notwithstanding anything else to the contrary in this Agreement, in the
        event that the trustee of the Retirement Income Trust Fund purchases a
        life insurance policy with the Contributions to and, if applicable,
        earnings of the Trust, and such life insurance policy is intended to
        continue in force beyond the Payout Period for the disability or
        retirement benefits payable from the Retirement Income Trust Fund
        pursuant to this Agreement, then the trustee shall have discretion to
        determine the portion of the cash value of such policy available for
        purposes of annuitizing the Retirement Income Trust Fund (it being
        understood that for purposes of this Section 2.3, "annuitizing" does not
        mean surrender of such policy and annuitizing of the cash value received
        upon such surrender) to provide the disability or retirement benefits
        payable under this Agreement, after taking into consideration the
        amounts reasonably believed to be required in order to maintain the cash
        value of such policy to continue such policy in effect until the death
        of the Director and payment of death benefits thereunder.

                                       14
<PAGE>

                                   SECTION III
                               RETIREMENT BENEFIT

3.1     (a) NORMAL FORM OF PAYMENT.
        If (i) the Director is employed with the Bank until reaching his Benefit
        Age and (ii) the Director has not made a Timely Election to receive a
        lump sum benefit, this Subsection 3.1(a) shall be controlling with
        respect to retirement benefits.

        The Retirement Income Trust Fund, measured as of the Director's Benefit
        Age, shall be annuitized (using the Interest Factor) into monthly
        installments and shall be payable for the Payout Period. Such benefit
        payments shall commence on the Director's Benefit Eligibility Date.
        Should Retirement Income Trust Fund assets actually earn a rate of
        return, following the date such balance is annuitized, which is less
        than the rate of return used to annuitize the Retirement Income Trust
        Fund, no additional contributions to the Retirement Income Trust Fund
        shall be required by the Bank in order to fund the final benefit
        payment(s) and make up for any shortage attributable to the
        less-than-expected rate of return. Should Retirement Income Trust Fund
        assets actually earn a rate of return, following the date such balance
        is annuitized, which is greater than the rate of return used to
        annuitize the Retirement Income Trust Fund, the final benefit payment to
        the Director (or his Beneficiary) shall distribute the excess amounts
        attributable to the greater-than-expected rate of return. The Director
        may at anytime during the Payout Period request to receive the unpaid
        balance of his Retirement Income Trust Fund in a lump sum payment. If
        such a lump sum payment is requested by the Director, payment of the
        balance of the Retirement Income Trust Fund in such lump sum form shall
        be made only if the Director gives notice to both the Administrator and
        trustee in writing. Such lump sum payment shall be payable within thirty
        (30) days of such notice. In the event the Director dies at any time
        after attaining his Benefit Age, but prior to commencement or completion
        of all monthly payments due and owing hereunder, (i) the trustee of the
        Retirement Income Trust Fund shall pay to the Director's Beneficiary the
        monthly installments (or a continuation of such monthly installments if
        they have already commenced) for the balance of months remaining in the
        Payout Period, or (ii) the Director's Beneficiary may request to receive
        the unpaid balance of the Director's Retirement Income Trust Fund in a
        lump sum payment. If a lump sum payment is requested by the Beneficiary,
        payment of the balance of the Retirement Income Trust Fund in such lump
        sum form shall be made only if the

                                       15
<PAGE>

        Director's Beneficiary notifies both the Administrator and trustee in
        writing of such election within ninety (90) days of the Director's
        death. Such lump sum payment shall be payable within thirty (30) days of
        such notice.

        The Director's Accrued Benefit Account (if applicable), measured as of
        the Director's Benefit Age, shall be annuitized (using the Interest
        Factor) into monthly installments and shall be payable for the Payout
        Period. Such benefit payments shall commence on the Director's Benefit
        Eligibility Date. In the event the Director dies at any time after
        attaining his Benefit Age, but prior to commencement or completion of
        all the payments due and owing hereunder, (i) the Bank shall pay to the
        Director's Beneficiary the same monthly installments (or a continuation
        of such monthly installments if they have already commenced) for the
        balance of months remaining in the Payout Period, or (ii) the Director's
        Beneficiary may request to receive the remainder of any unpaid benefit
        payments in a lump sum payment. If a lump sum payment is requested by
        the Beneficiary, the amount of such lump sum payment shall be equal to
        the unpaid balance of the Director's Accrued Benefit Account. Payment in
        such lump sum form shall be made only if the Director's Beneficiary (i)
        obtains Board of Director approval, and (ii) notifies the Administrator
        in writing of such election within ninety (90) days of the Director's
        death. Such lump sum payment, if approved by the Board of Directors,
        shall be made within thirty (30) days of such Board of Director
        approval.

        (b)     ALTERNATIVE PAYOUT OPTION.
        If (i) the Director is employed with the Bank until reaching his Benefit
        Age, and (ii) the Director has made a Timely Election to receive a lump
        sum benefit, this Subsection 3.1(b) shall be controlling with respect to
        retirement benefits.

        The balance of the Retirement Income Trust Fund, measured as of the
        Director's Benefit Age, shall be paid to the Director in a lump sum on
        his Benefit Eligibility Date. In the event the Director dies after
        becoming eligible for such payment (upon attainment of his Benefit Age),
        but before the actual payment is made, his Beneficiary shall be entitled
        to receive the lump sum benefit in accordance with this Subsection
        3.1(b) within thirty (30) days of the date the Administrator receives
        notice of the Director's death.

                                       16
<PAGE>

        The balance of the Director's Accrued Benefit Account (if applicable),
        measured as of the Director's Benefit Age, shall be paid to the Director
        in a lump sum on his Benefit Eligibility Date. In the event the Director
        dies after becoming eligible for such payment (upon attainment of his
        Benefit Age), but before the actual payment is made, his Beneficiary
        shall be entitled to receive the lump sum benefit in accordance with
        this Subsection 3.1(b) within thirty (30) days of the date the
        Administrator receives notice of the Director's death.

                                   SECTION IV
                          PRE-RETIREMENT DEATH BENEFIT

4.1     (a) NORMAL FORM OF PAYMENT.
        If (i) the Director dies while employed by the Bank, and (ii) the
        Director has not made a Timely Election to receive a lump sum benefit,
        this Subsection 4.1(a) shall be controlling with respect to
        pre-retirement death benefits.

        The balance of the Director's Retirement Income Trust Fund, measured as
        of the later of (i) the Director's death, or (ii) the date any final
        lump sum Contribution is made pursuant to Subsection 2.1(b), shall be
        annuitized (using the Interest Factor) into monthly installments and
        shall be payable for the Payout Period. Such benefits shall commence
        within thirty (30) days of the date the Administrator receives notice of
        the Director's death. Should Retirement Income Trust Fund assets
        actually earn a rate of return, following the date such balance is
        annuitized, which is less than the rate of return used to annuitize the
        Retirement Income Trust Fund, no additional contributions to the
        Retirement Income Trust Fund shall be required by the Bank in order to
        fund the final benefit payment(s) and make up for any shortage
        attributable to the less-than-expected rate of return. Should Retirement
        Income Trust Fund assets actually earn a rate of return, following the
        date such balance is annuitized, which is greater than the rate of
        return used to annuitize the Retirement Income Trust Fund, the final
        benefit payment to the Director's Beneficiary shall distribute the
        excess amounts attributable to the greater-than-expected rate of return.
        The Director's Beneficiary may request to receive the unpaid balance of
        the Director's Retirement Income Trust Fund in a lump sum payment. If a
        lump sum payment is requested by the Beneficiary, payment of the balance
        of the Retirement Income Trust Fund in such lump sum form shall be made
        only if the Director's Beneficiary notifies both the Administrator and
        trustee

                                       17
<PAGE>

        in writing of such election within ninety (90) days of the Director's
        death. Such lump sum payment shall be made within thirty (30) days of
        such notice.

        The Director's Accrued Benefit Account (if applicable), measured as of
        the later of (i) the Director's death or (ii) the date any final lump
        sum Phantom Contribution is recorded in the Accrued Benefit Account
        pursuant to Subsection 2.1(c), shall be annuitized (using the Interest
        Factor) into monthly installments and shall be payable to the Director's
        Beneficiary for the Payout Period. Such benefit payments shall commence
        within thirty (30) days of the date the Administrator receives notice of
        the Director's death, or if later, within thirty (30) days after any
        final lump sum Phantom Contribution is recorded in the Accrued Benefit
        Account in accordance with Subsection 2.1(c). The Director's Beneficiary
        may request to receive the remainder of any unpaid monthly benefit
        payments due from the Accrued Benefit Account in a lump sum payment. If
        a lump sum payment is requested by the Beneficiary, the amount of such
        lump sum payment shall be equal to the balance of the Director's Accrued
        Benefit Account. Payment in such lump sum form shall be made only if the
        Director's Beneficiary (i) obtains Board of Director approval, and (ii)
        notifies the Administrator in writing of such election within ninety
        (90) days of the Director's death. Such lump sum payment, if approved by
        the Board of Directors, shall be payable within thirty (30) days of such
        Board of Director approval.

        (b)     ALTERNATIVE PAYOUT OPTION.
        If (i) the Director dies while employed by the Bank, and (ii) the
        Director has made a Timely Election to receive a lump sum benefit, this
        Subsection 4.1(b) shall be controlling with respect to pre-retirement
        death benefits.

        The balance of the Director's Retirement Income Trust Fund, measured as
        of the later of (i) the Director's death, or (ii) the date any final
        lump sum Contribution is made pursuant to Subsection 2.1(b), shall be
        paid to the Director's Beneficiary in a lump sum within thirty (30) days
        of the date the Administrator receives notice of the Director's death.

        The balance of the Director's Accrued Benefit Account (if applicable),
        measured as of the later of (i) the Director's death, or (ii) the date
        any final Phantom Contribution is recorded pursuant to

                                       18
<PAGE>

        Subsection 2.1(c), shall be paid to the Director's Beneficiary in a lump
        sum within thirty (30) days of the date the Administrator receives
        notice of the Director's death.

                                    SECTION V
               BENEFIT(S) IN THE EVENT OF TERMINATION OF SERVICE
                              PRIOR TO BENEFIT AGE

5.1     VOLUNTARY OR INVOLUNTARY TERMINATION OF SERVICE OTHER THAN FOR CAUSE. In
        the event the Director's service with the Bank is voluntarily or
        involuntarily terminated prior to Benefit Age, for any reason, including
        a Change in Control, but excluding (i) any disability related
        termination for which the Board of Directors has approved early payment
        of benefits pursuant to Subsection 6.1, (ii) the Director's
        pre-retirement death, which shall be covered in Section IV, (iii) or
        termination for Cause, which shall be covered in Subsection 5.2, the
        Director (or his Beneficiary) shall be entitled to receive benefits in
        accordance with this Subsection 5.1. Payments of benefits pursuant to
        this Subsection 5.1 shall be made in accordance with Subsection 5.1 (a)
        or 5.1 (b) below, as applicable.

        (a)     NORMAL FORM OF PAYMENT.
        (1)     DIRECTOR LIVES UNTIL BENEFIT AGE
        If (i) after such termination, the Director lives until attaining his
        Benefit Age, and (ii) the Director has not made a Timely Election to
        receive a lump sum benefit, this Subsection 5.1(a)(1) shall be
        controlling with respect to retirement benefits.

        The Retirement Income Trust Fund, measured as of the Director's Benefit
        Age, shall be annuitized (using the Interest Factor) into monthly
        installments and shall be payable for the Payout Period. Such payments
        shall commence on the Director's Benefit Eligibility Date. Should
        Retirement Income Trust Fund assets actually earn a rate of return,
        following the date such balance is annuitized, which is less than the
        rate of return used to annuitize the Retirement Income Trust Fund, no
        additional contributions to the Retirement Income Trust Fund shall be
        required by the Bank in order to fund the final benefit payment(s) and
        make up for any shortage attributable to the less-than-expected rate of
        return. Should Retirement Income Trust Fund assets actually earn a rate
        of return, following the date such balance is annuitized, which is
        greater than

                                       19
<PAGE>

        the rate of return used to annuitize the Retirement Income Trust Fund,
        the final benefit payment to the Director (or his Beneficiary) shall
        distribute the excess amounts attributable to the greater-than-expected
        rate of return. The Director may at anytime during the Payout Period
        request to receive the unpaid balance of his Retirement Income Trust
        Fund in a lump sum payment. If such a lump sum payment is requested by
        the Director, payment of the balance of the Retirement Income Trust Fund
        in such lump sum form shall be made only if the Director gives notice to
        both the Administrator and trustee in writing. Such lump sum payment
        shall be payable within thirty (30) days of such notice. In the event
        the Director dies at any time after attaining his Benefit Age, but prior
        to commencement or completion of all monthly payments due and owing
        hereunder, (i) the trustee of the Retirement Income Trust Fund shall pay
        to the Director's Beneficiary the monthly installments (or a
        continuation of the monthly installments if they have already commenced)
        for the balance of months remaining in the Payout Period, or (ii) the
        Director's Beneficiary may request to receive the unpaid balance of the
        Director's Retirement Income Trust Fund in a lump sum payment. If a lump
        sum payment is requested by the Beneficiary, payment of the balance of
        the Retirement Income Trust Fund in such lump sum form shall be made
        only if the Director's Beneficiary notifies both the Administrator and
        trustee in writing of such election within ninety (90) days of the
        Director's death. Such lump sum payment shall be made within thirty (30)
        days of such notice.

        The Director's Accrued Benefit Account (if applicable), measured as of
        the Director's Benefit Age, shall be annuitized (using the Interest
        Factor) into monthly installments and shall be payable for the Payout
        Period. Such benefit payments shall commence on the Director's Benefit
        Eligibility Date. In the event the Director dies at any time after
        attaining his Benefit Age, but prior to commencement or completion of
        all the payments due and owing hereunder, (i) the Bank shall pay to the
        Director's Beneficiary the same monthly installments (or a continuation
        of such monthly installments if they have already commenced) for the
        balance of months remaining in the Payout Period, or (ii) the Director's
        Beneficiary may request to receive the remainder of any unpaid benefit
        payments in a lump sum payment. If a lump sum payment is requested by
        the Beneficiary, the amount of such lump sum payment shall be equal to
        the unpaid balance of the Director's Accrued Benefit Account. Payment in
        such lump sum form shall be made only if the Director's Beneficiary (i)
        obtains Board of Director approval, and (ii) notifies the Administrator
        in writing of such election within ninety (90) days of the Director's
        death. Such lump sum

                                       20
<PAGE>

        payment, if approved by the Board of Directors, shall be made within
        thirty (30) days of such Board of Director approval.

        (2)     DIRECTOR DIES PRIOR TO BENEFIT AGE
        If (i) after such termination, the Director dies prior to attaining his
        Benefit Age, and (ii) the Director has not made a Timely Election to
        receive a lump sum benefit, this Subsection 5.1(a)(2) shall be
        controlling with respect to retirement benefits.

        The Retirement Income Trust Fund, measured as of the date of the
        Director's death, shall be annuitized (using the Interest Factor) into
        monthly installments and shall be payable for the Payout Period. Such
        payments shall commence within thirty (30) days of the date the
        Administrator receives notice of the Director's death. Should Retirement
        Income Trust Fund assets actually earn a rate of return, following the
        date such balance is annuitized, which is less than the rate of return
        used to annuitize the Retirement Income Trust Fund, no additional
        contributions to the Retirement Income Trust Fund shall be required by
        the Bank in order to fund the final benefit payment(s) and make up for
        any shortage attributable to the less-than-expected rate of return.
        Should Retirement Income Trust Fund assets actually earn a rate of
        return, following the date such balance is annuitized, which is greater
        than the rate of return used to annuitize the Retirement Income Trust
        Fund, the final benefit payment to the Director's Beneficiary shall
        distribute the excess amounts attributable to the greater-than-expected
        rate of return. The Director's Beneficiary may request to receive the
        unpaid balance of the Director's Retirement Income Trust Fund in the
        form of a lump sum payment. If a lump sum payment is requested by the
        Beneficiary, payment of the balance of the Retirement Income Trust Fund
        in such lump sum form shall be made only if the Director's Beneficiary
        notifies both the Administrator and trustee in writing of such election
        within ninety (90) days of the Director's death. Such lump sum payment
        shall be made within thirty (30) days of such notice.

        The Director's Accrued Benefit Account (if applicable), measured as of
        the date of the Director's death, shall be annuitized (using the
        Interest Factor) into monthly installments and shall be payable for the
        Payout Period. Such payments shall commence within thirty (30) days of
        the date the Administrator receives notice of the Director's death. The
        Director's Beneficiary may request to receive the unpaid balance of the
        Director's Accrued Benefit Account in the form of a lump

                                       21
<PAGE>

        sum payment. If a lump sum payment is requested by the Beneficiary,
        payment of the balance of the Accrued Benefit Account in such lump sum
        form shall be made only if the Director's Beneficiary (i) obtains Board
        of Director approval, and (ii) notifies the Administrator in writing of
        such election within ninety (90) days of the Director's death. Such lump
        sum payment, if approved by the Board of Directors, shall be made within
        thirty (30) days of such Board of Director approval.

        (b)     ALTERNATIVE PAYOUT OPTION.
        (1)     DIRECTOR LIVES UNTIL BENEFIT AGE
        If (i) after such termination, the Director lives until attaining his
        Benefit Age, and (ii) the Director has made a Timely Election to receive
        a lump sum benefit, this Subsection 5.1(b)(1) shall be controlling with
        respect to retirement benefits.

        The balance of the Retirement Income Trust Fund, measured as of the
        Director's Benefit Age, shall be paid to the Director in a lump sum on
        his Benefit Eligibility Date. In the event the Director dies after
        becoming eligible for such payment (upon attainment of his Benefit Age),
        but before the actual payment is made, his Beneficiary shall be entitled
        to receive the lump sum benefit in accordance with this Subsection
        5.1(b)(1) within thirty (30) days of the date the Administrator receives
        notice of the Director's death.

        The balance of the Director's Accrued Benefit Account (if applicable),
        measured as of the Director's Benefit Age, shall be paid to the Director
        in a lump sum on his Benefit Eligibility Date. In the event the Director
        dies after becoming eligible for such payment (upon attainment of his
        Benefit Age), but before the actual payment is made, his Beneficiary
        shall be entitled to receive the lump sum benefit in accordance with
        this Subsection 5.1(b)(1) within thirty (30) days of the date the
        Administrator receives notice of the Director's death.

        (2)     DIRECTOR DIES PRIOR TO BENEFIT AGE
        If (i) after such termination, the Director dies prior to attaining his
        Benefit Age, and (ii) the Director has made a Timely Election to receive
        a lump sum benefit, this Subsection 5.1(b)(2) shall be controlling with
        respect to pre-retirement death benefits.

                                       22
<PAGE>

        The balance of the Retirement Income Trust Fund, measured as of the date
        of the Director's death, shall be paid to the Director's Beneficiary
        within thirty (30) days of the date the Administrator receives notice of
        the Director's death.

        The balance of the Director's Accrued Benefit Account (if applicable),
        measured as of the date of the Director's death, shall be paid to the
        Director's Beneficiary within thirty (30) days of the date the
        Administrator receives notice of the Director's death.

5.2     TERMINATION FOR CAUSE.
        If the Director is terminated for Cause, all benefits under this
        Agreement, other than those which can be paid from previous
        Contributions to the Retirement Income Trust Fund (and earnings on such
        Contributions), shall be forfeited. Furthermore, no further
        Contributions (or Phantom Contributions, as applicable) shall be
        required of the Bank for the year in which such termination for Cause
        occurs (if not yet made). The Director shall be entitled to receive a
        benefit in accordance with this Subsection 5.2.

        The balance of the Director's Retirement Income Trust Fund shall be paid
        to the Director in a lump sum on his Benefit Eligibility Date. In the
        event the Director dies prior to his Benefit Eligibility Date, his
        Beneficiary shall be entitled to receive the balance of the Director's
        Retirement Income Trust Fund in a lump sum within thirty (30) days of
        the date the Administrator receives notice of the Director's death.

                                   SECTION VI
                                 OTHER BENEFITS

6.1     (a) DISABILITY BENEFIT.
        If the Director's service is terminated prior to Benefit Age due to a
        disability which meets the criteria set forth below, the Director may
        request to receive the Disability Benefit in lieu of the retirement
        benefit(s) available pursuant to Section 5.1 (which is (are) not
        available prior to the Director's Benefit Eligibility Date).

                                       23
<PAGE>

        In any instance in which: (i) it is determined by a duly licensed,
        independent physician selected by the Bank, that the Director is no
        longer able, properly and satisfactorily, to perform his regular duties
        as an officer, because of ill health, accident, disability or general
        inability due to age, (ii) the Director requests payment under this
        Subsection in lieu of Subsection 5.1, and (iii) Board of Director
        approval is obtained to allow payment under this Subsection, in lieu of
        Subsection 5.1, the Director shall be entitled to the following lump sum
        benefit(s). The lump sum benefit(s) to which the Director is entitled
        shall include: (i) the balance of the Retirement Income Trust Fund, plus
        (ii) the balance of the Accrued Benefit Account (if applicable). The
        benefit(s) shall be paid within thirty (30) days following the date of
        the Director's request for such benefit is approved by the Board of
        Directors. In the event the Director dies after becoming eligible for
        such payment(s) but before the actual payment(s) is (are) made, his
        Beneficiary shall be entitled to receive the benefit(s) provided for in
        this Subsection 6.1(a) within thirty (30) days of the date the
        Administrator receives notice of the Director's death.

        (b)     DISABILITY BENEFIT - SUPPLEMENTAL.
        Furthermore, if Board of Director approval is obtained within thirty
        (30) days of the Director's death, the Bank shall make a direct, lump
        sum payment to the Director's Beneficiary in an amount equal to the sum
        of all remaining Contributions (or Phantom Contributions) set forth in
        Exhibit A, but not required pursuant to Subsection 2.1(b) (or 2.1(c))
        due to the Director's disability-related termination. Such lump sum
        payment, if approved by the Board of Directors, shall be payable to the
        Director's Beneficiary within thirty (30) days of such Board of Director
        approval.

6.2     ADDITIONAL DEATH BENEFIT - BURIAL EXPENSE.
        Upon the Director's death, the Director's Beneficiary shall also be
        entitled to receive a one-time lump sum death benefit in the amount of
        Ten Thousand Dollars ($10,000). This benefit shall be paid directly from
        the Bank to the Beneficiary and shall be provided specifically for the
        purpose of providing payment for burial and/or funeral expenses of the
        Director. Such death benefit shall be payable within thirty (30) days of
        the date the Administrator receives notice of the Director's death. The
        Director's Beneficiary shall not be entitled to such benefit if the
        Director is terminated for Cause prior to death.

                                       24
<PAGE>

                                   SECTION VII
                             BENEFICIARY DESIGNATION

        The Director shall make an initial designation of primary and secondary
Beneficiaries upon execution of this Agreement and shall have the right to
change such designation, at any subsequent time, by submitting to (i) the
Administrator, AND (ii) the trustee of the Retirement Income Trust Fund, in
substantially the form attached as Exhibit B to this Agreement, a written
designation of primary and secondary Beneficiaries. Any Beneficiary designation
made subsequent to execution of this Agreement shall become effective only when
receipt thereof is acknowledged in writing by the Administrator.

                                  SECTION VIII
                                 NON-COMPETITION

8.1     NON-COMPETITION DURING SERVICE.
        In consideration of the agreements of the Bank contained herein and of
        the payments to be made by the Bank pursuant hereto, the Director hereby
        agrees that, for as long as he remains in the service of the Bank, he
        will devote substantially all of his time, skill, diligence and
        attention to the business of the Bank, and will not actively engage,
        either directly or indirectly, in any business or other activity which
        is, or may be deemed to be, in any way competitive with or adverse to
        the best interests of the business of the Bank, unless the Director has
        the prior express written consent of the Bank.

8.2     BREACH OF NON-COMPETITION CLAUSE.
        (a)     CONTINUED SERVICE FOLLOWING BREACH.
        In the event (i) any breach by the Director of the agreements and
        covenants described in Subsection 8.1 occurs, and (ii) the Director
        continues service at the Bank following such breach, all further
        Contributions to the Retirement Income Trust Fund (or Phantom
        Contributions recorded in the Accrued Benefit Account) shall immediately
        cease, and all benefits under this Agreement, other than those which can
        be paid from previous Contributions to the Retirement Income Trust Fund
        (and earnings on such Contributions), shall be forfeited. The Director
        (or his Beneficiary) shall be entitled to receive a benefit from the
        Retirement Income Trust Fund in accordance with Subpart (1) or (2)
        below, as applicable.

                                       25
<PAGE>

        (1)     DIRECTOR LIVES UNTIL BENEFIT AGE
        If, following such breach, the Director lives until attaining his
        Benefit Age, he shall be entitled to receive a benefit from the
        Retirement Income Trust Fund in accordance with this Subsection
        8.2(a)(1). The balance of the Retirement Income Trust Fund, measured as
        of the Director's Benefit Age, shall be paid to the Director in a lump
        sum on his Benefit Eligibility Date. In the event the Director dies
        after attaining his Benefit Age but before actual payment is made, his
        Beneficiary shall be entitled to receive the lump sum benefit in
        accordance with this Subsection 8.2(a)(1) within thirty (30) days of the
        date of the Administrator receives notice of the Director's death.

        (2)     DIRECTOR DIES PRIOR TO BENEFIT AGE
        If, following such breach, the Director dies prior to attaining his
        Benefit Age, his Beneficiary shall be entitled to receive a benefit from
        the Retirement Income Trust Fund in accordance with this Subsection 8.2
        (a)(2). The balance of the Retirement Income Trust Fund, measured as of
        the date of the Director's death, shall be paid to the Director's
        Beneficiary in a lump sum within thirty (30) days of the date the
        Administrator receives notice of the Director's death.

        (b)     TERMINATION OF SERVICE FOLLOWING BREACH.
        In the event (i) any breach by the Director of the agreements and
        covenants described in Subsection 8.1 occurs, and (ii) the Director's
        service with the Bank is terminated due to such breach, such termination
        shall be deemed to be for Cause and the benefits payable to the Director
        shall be paid in accordance with Subsection 5.2 of this Agreement.

8.3     NON-COMPETITION FOLLOWING SERVICE.
        (a)     DIRECTOR AGREES NOT TO COMPETE
        The Director expressly agrees that, as consideration for the covenants
        of the Bank contained herein and as a condition to the performance by
        the Bank of its obligations hereunder, from and after any voluntary or
        involuntary termination of service, other than a termination of service
        related to a Change in Control, and continuing throughout the Payout
        Period or, with respect to Section 8.3 (c), for two years following
        termination of service, he will not without the prior written consent of
        the Bank, serve as an officer or director or employee of any bank
        holding company, bank, savings association or mortgage company with its
        principal office within the

                                       26
<PAGE>

        bank's trading area, and which offers products or services in the bank's
        trading area competing with those offered by the Bank.

        (b)     BENEFITS PAID FROM ACCRUED BENEFIT ACCOUNT.
        Director understands and agrees that, following Director's voluntary or
        involuntary termination of service, the Bank's obligation, if any, to
        make payments to the Director from the Accrued Benefit Account shall be
        conditioned on the Director's forbearance from actively engaging, either
        directly or indirectly in any business or other activity which is, or
        may be deemed to be, in any way competitive with or adverse to the best
        interests of the Bank, unless the Director has the prior written consent
        of the Bank. In the event of the Director's breach of the covenants and
        agreements contained herein, further payments to the Director from the
        Accrued Benefit Account, if any, shall cease and Director's rights to
        amounts credited to the Accrued Benefit Account shall be forfeited.

        (c)     BENEFITS PAID FROM RETIREMENT INCOME TRUST FUND.
        Director understands and agrees that Director's violation of these
        provisions following a voluntary or involuntary termination of service,
        other than a termination of service following a Change in Control, will
        cause irreparable harm to the Bank. In the event of Director's violation
        of this Section 8.3 within three (3) years of such voluntary or
        involuntary termination of service, Director agrees to pay or cause the
        Retirement Income Trust Fund to pay to the Bank, as liquidated damages
        an amount equal to 10% of the after-tax contributions, which the Bank
        has made on Director's behalf to the Retirement Income Trust Fund. Said
        liquidated damages payment shall be separate from, and in addition to,
        any amounts forfeited from the Accrued Benefit Account.

        (d)     CHANGE IN CONTROL.
        In the event of a Change in Control, this Section 8.3 shall be null and
        void.

                                       27
<PAGE>

                                   SECTION IX
                           DIRECTOR'S RIGHT TO ASSETS

        The rights of the Director, any Beneficiary, or any other person
claiming through the Director under this Agreement, shall be solely those of an
unsecured general creditor of the Bank. The Director, the Beneficiary, or any
other person claiming through the Director, shall only have the right to receive
from the Bank those payments or amounts so specified under this Agreement. The
Director agrees that he, his Beneficiary, or any other person claiming through
him shall have no rights or interests whatsoever in any asset of the Bank,
including any insurance policies or contracts which the Bank may possess or
obtain to informally fund this Agreement. Any asset used or acquired by the Bank
in connection with the liabilities it has assumed under this Agreement shall not
be deemed to be held under any trust for the benefit of the Director or his
Beneficiaries, unless such asset is contained in the rabbi trust described in
Section XII of this Agreement. Any such asset shall be and remain a general,
unpledged asset of the Bank in the event of the Bank's insolvency.

                                    SECTION X
                            RESTRICTIONS UPON FUNDING

        The Bank shall have no obligation to set aside, earmark or entrust any
fund or money with which to pay its obligations under this Agreement, other than
those Contributions required to be made to the Retirement Income Trust Fund. The
Director, his Beneficiaries or any successor in interest to him shall be and
remain simply a general unsecured creditor of the Bank in the same manner as any
other creditor having a general claim for matured and unpaid compensation. The
Bank reserves the absolute right in its sole discretion to either purchase
assets to meet its obligations undertaken by this Agreement or to refrain from
the same and to determine the extent, nature, and method of such asset
purchases. Should the Bank decide to purchase assets such as life insurance,
mutual funds, disability policies or annuities, the Bank reserves the absolute
right, in its sole discretion, to replace such assets from time to time or to
terminate its investment in such assets at any time, in whole or in part. At no
time shall the Director be deemed to have any lien, right, title or interest in
or to any specific investment or to any assets of the Bank. If the Bank elects
to invest in a life insurance, disability or annuity policy upon the life of the
Director, then the Director shall assist the Bank by freely submitting to a
physical examination and by supplying such additional information necessary to
obtain such insurance or annuities.

                                       28
<PAGE>

                                   SECTION XI
                                 ACT PROVISIONS

11.1    NAMED FIDUCIARY AND ADMINISTRATOR. The Bank, as Administrator, shall be
        the Named Fiduciary of this Agreement. As Administrator, the Bank shall
        be responsible for the management, control and administration of the
        Agreement as established herein. The Administrator may delegate to
        others certain aspects of the management and operational
        responsibilities of the Agreement, including the employment of advisors
        and the delegation of ministerial duties to qualified individuals.

11.2    CLAIMS PROCEDURE AND ARBITRATION. In the event that benefits under this
        Agreement are not paid to the Director (or to his Beneficiary in the
        case of the Director's death) and such claimants feel they are entitled
        to receive such benefits, then a written claim must be made to the
        Administrator within sixty (60) days from the date payments are refused.
        The Administrator shall review the written claim and, if the claim is
        denied, in whole or in part, it shall provide in writing, within ninety
        (90) days of receipt of such claim, its specific reasons for such
        denial, reference to the provisions of this Agreement upon which the
        denial is based, and any additional material or information necessary to
        perfect the claim. Such writing by the Administrator shall further
        indicate the additional steps which must be undertaken by claimants if
        an additional review of the claim denial is desired.

        If claimants desire a second review, they shall notify the Administrator
        in writing within sixty (60) days of the first claim denial. Claimants
        may review this Agreement or any documents relating thereto and submit
        any issues and comments, in writing, they may feel appropriate. In its
        sole discretion, the Administrator shall then review the second claim
        and provide a written decision within sixty (60) days of receipt of such
        claim. This decision shall state the specific reasons for the decision
        and shall include reference to specific provisions of this Agreement
        upon which the decision is based.

        If claimants continue to dispute the benefit denial based upon completed
        performance of this Plan and the Agreement or the meaning and effect of
        the terms and conditions thereof, then claimants may submit the dispute
        to mediation, administered by the American Arbitration Association

                                       29
<PAGE>

        ("AAA") (or a mediator selected by the parties) in accordance with the
        AAA's Commercial Mediation Rules. If mediation is not successful in
        resolving the dispute, it shall be settled by arbitration administered
        by the AAA under its Commercial Arbitration Rules, and judgment on the
        award rendered by the arbitrator(s) may be entered in any court having
        jurisdiction thereof.

                                   SECTION XII
                                  MISCELLANEOUS

12.1    NO EFFECT ON EMPLOYMENT RIGHTS. Nothing contained herein will confer
        upon the Director the right to be retained in the service of the Bank
        nor limit the right of the Bank to discharge or otherwise deal with the
        Director without regard to the existence of the Agreement.

12.2    STATE LAW. The Agreement is established under, and will be construed
        according to, the laws of the state of New Jersey, to the extent such
        laws are not preempted by the Act and valid regulations published
        thereunder.

12.3    SEVERABILITY. In the event that any of the provisions of this Agreement
        or portion thereof, are held to be inoperative or invalid by any court
        of competent jurisdiction, then: (1) insofar as is reasonable, effect
        will be given to the intent manifested in the provisions held invalid or
        inoperative, and (2) the validity and enforceability of the remaining
        provisions will not be affected thereby.

12.4    INCAPACITY OF RECIPIENT. In the event the Director is declared
        incompetent and a conservator or other person legally charged with the
        care of his person or Estate is appointed, any benefits under the
        Agreement to which such Director is entitled shall be paid to such
        conservator or other person legally charged with the care of his person
        or Estate.

12.5    UNCLAIMED BENEFIT. The Director shall keep the Bank informed of his
        current address and the current address of his Beneficiaries. The Bank
        shall not be obligated to search for the whereabouts of any person. If
        the location of the Director is not made known to the Bank as of the
        date upon which any payment of any benefits from the Accrued Benefit
        Account may first be made, the Bank shall delay payment of the
        Director's benefit payment(s) until the location of the

                                       30
<PAGE>

        Director is made known to the Bank; however, the Bank shall only be
        obligated to hold such benefit payment(s) for the Director until the
        expiration of thirty-six (36) months.

12.6    LIMITATIONS ON LIABILITY. Notwithstanding any of the preceding
        provisions of the Agreement, no individual acting as an employee or
        agent of the Bank, or as a member of the Board of Directors shall be
        personally liable to the Director or any other person for any claim,
        loss, liability or expense incurred in connection with the Agreement.

12.7    GENDER. Whenever in this Agreement words are used in the masculine or
        neuter gender, they shall be read and construed as in the masculine,
        feminine or neuter gender, whenever they should so apply.

12.8    EFFECT ON OTHER CORPORATE BENEFIT AGREEMENTS. Nothing contained in this
        Agreement shall affect the right of the Director to participate in or be
        covered by any qualified or non-qualified pension, profit sharing,
        group, bonus or other supplemental compensation or fringe benefit
        agreement constituting a part of the Bank's existing or future
        compensation structure.

12.9    SUICIDE. Notwithstanding anything to the contrary in this Agreement, if
        the Director's death results from suicide, whether sane or insane,
        within twenty-six (26) months after execution of this Agreement, all
        further Contributions to the Retirement Income Trust Fund (or Phantom
        Contributions recorded in the Accrued Benefit Account) shall thereupon
        cease, and no Contribution (or Phantom Contribution) shall be made by
        the Bank to the Retirement Income Trust Fund (or recorded in the Accrued
        Benefit Account) in the year such death resulting from suicide occurs
        (if not yet made). All benefits other than those available from previous
        Contributions to the Retirement Income Trust Fund under this Agreement
        shall be forfeited, and this Agreement shall become null and void. The
        balance of the Retirement Income Trust Fund, measured as of the
        Director's date of death, shall be paid to the Beneficiary within thirty
        (30) days of the date the Administrator receives notice of the
        Director's death.

12.10   INUREMENT. This Agreement shall be binding upon and shall inure to the
        benefit of the Bank, its successors and assigns, and the Director, his
        successors, heirs, executors, administrators, and Beneficiaries.

                                       31
<PAGE>

12.11   HEADINGS. Headings and sub-headings in this Agreement are inserted for
        reference and convenience only and shall not be deemed a part of this
        Agreement.

12.12   ESTABLISHMENT OF A RABBI TRUST. The Bank shall establish a rabbi trust
        into which the Bank shall contribute assets which shall be held therein,
        subject to the claims of the Bank's creditors in the event of the Bank's
        "Insolvency" (as defined in such rabbi trust agreement), until the
        contributed assets are paid to the Director and/or his Beneficiary in
        such manner and at such times as specified in this Agreement. It is the
        intention of the Bank that the contribution or contributions to the
        rabbi trust shall provide the Bank with a source of funds to assist it
        in meeting the liabilities of this Agreement.

12.13   SOURCE OF PAYMENTS. All payments provided in this Agreement shall be
        timely paid in cash or check from the general funds of the Bank or the
        assets of the rabbi trust, to the extent made from the Accrued Benefit
        Account.

                                  SECTION XIII
                           AMENDMENT/PLAN TERMINATION

13.1    AMENDMENT OR PLAN TERMINATION. The Bank intends this Agreement to be
        permanent, and the Agreement may not be amended or terminated without
        the express written consent of the parties. Any amendment or termination
        of the Agreement shall be made pursuant to a resolution of the Board of
        Directors of the Bank and shall be effective as of the date of such
        resolution. No amendment or termination of the Agreement shall directly
        or indirectly deprive the Director of all or any portion of the
        Director's Retirement Income Trust Fund (and Accrued Benefit Account, if
        applicable) as of the effective date of the resolution amending or
        terminating the Agreement.

        Notwithstanding the above, if the Director does not exercise any
        withdrawal rights pursuant to Subsection 2.2, and if at any time after
        the final Contribution immediately prior to Director's Benefits
        Eligibility Date or the date that triggers distribution is made to the
        Retirement Income Trust Fund the Director elects to terminate the
        Retirement Income Trust Fund and receive a

                                       32
<PAGE>

        distribution of the assets of the Retirement Income Trust Fund, then
        upon such distribution this Agreement shall terminate.

13.2    DIRECTOR'S RIGHT TO PAYMENT FOLLOWING PLAN TERMINATION. In the event of
        a termination of the Agreement, the Director shall be entitled to the
        balance, if any, of his Retirement Income Trust Fund (and Accrued
        Benefit Account, if applicable). However, if such termination is done in
        anticipation of or pursuant to a "Change in Control," such balance(s)
        shall include the final Contribution (or final Phantom Contribution)
        made (or recorded) pursuant to Subsection 2.1(b)(2) (or 2.1(c)(2)).
        Payment of the balance(s) of the Director's Retirement Income Trust Fund
        (and Accrued Benefit Account, if applicable) shall not be dependent upon
        his continuation of service with the Bank following the termination date
        of the Agreement. Payment of the balance(s) of the Director's Retirement
        Income Trust Fund (and Accrued Benefit Account, if applicable) shall be
        made in a lump sum within thirty (30) days of the date of termination of
        the Agreement.

                                   SECTION XIV
                                    EXECUTION

14.1    This Agreement and the Salvatore Romano Grantor Trust Agreement set
        forth the entire understanding of the parties hereto with respect to the
        transactions contemplated hereby, and any previous agreements or
        understandings between the parties hereto regarding the subject matter
        hereof are merged into and superseded by this Agreement and the
        Salvatore Romano Grantor Trust Agreement.

14.2    This Agreement shall be executed in triplicate, each copy of which, when
        so executed and delivered, shall be an original, but all three copies
        shall together constitute one and the same instrument.

                                       33
<PAGE>

        IN WITNESS WHEREOF, the Bank and the Director have caused this Agreement
to be executed on the day and date first above written.

ATTEST:                                 MAGYAR SAVINGS BANK:

/s/ Elizabeth E. Hance                  By:     /s/ Robert E. Pastor
-----------------------                         ------------------------

                                        Title:  President/CEO
                                                ------------------------

WITNESS:                                DIRECTOR:

/s/ Karen LeBlon                        /s/ S J Romano
-----------------------                 --------------------------------

                                       34
<PAGE>

                            CONDITIONS, ASSUMPTIONS,
                                       AND
               SCHEDULE OF CONTRIBUTIONS AND PHANTOM CONTRIBUTIONS

1.      Interest Factor - for purposes of:

        a.      the Accrued Benefit Account - shall be six percent (6%) per
                annum, compounded monthly.

        b.      the Elective Contributions - shall be ten percent (10%) per
                annum, compounded monthly.

        c.      the Emeritus Contributions - shall be six percent (6%) per
                annum, compounded monthly.

        d.      the Retirement Income Trust Fund - for purposes of annuitizing
                the balance of the Retirement Income Trust Fund over the Payout
                Period, the trustee of the Salvatore Romano Grantor Trust shall
                exercise discretion in selecting the appropriate rate given the
                nature of the investments contained in the Retirement Income
                Trust Fund and the expected return associated with the
                investments. For these purposes, if the trustee of the
                Retirement Income Trust Fund has purchased a life insurance
                policy, the trustee shall have the discretion to determine the
                portion of the cash value of such policy available for purposes
                of annuitizing the Retirement Income Trust Fund, in accordance
                with Section 2.3 of the Agreement.

2.      The amount of the annual Emeritus Contributions (or Phantom
        Contributions) to the Retirement Income Trust Fund (or Accrued Benefit
        Account) has been based on the annual interest-adjusted accounting
        accruals which would be required of the Bank through the earlier of the
        Director's death or Benefit Age, (i) pursuant to APB Opinion No. 12, as
        amended by FAS 106 and (ii) assuming a discount rate equal to six
        percent (6%) per annum, in order to provide a portion of the unfunded,
        non-qualified Supplemental Retirement Income Benefit. The Emeritus
        Contributions are calculated to support a benefit based upon 50% of the
        Director's total board fees, committee fees and/or retainer in the
        twelve months prior to Director's Benefit Eligibility Date.

3.      The amount of the annual Elective Contributions (or Phantom
        Contributions) to the Retirement Income Trust Fund (or Accrued Benefit
        Account) has been based on the annual interest-adjusted accounting
        accruals which would be required of the Bank through the earlier of the
        Director's death or Benefit Age, (i) pursuant to APB Opinion No. 12, as
        amended by FAS 106 and (ii) assuming a discount rate equal to ten
        percent (10%) per annum, in order to provide a portion of the unfunded,
        non-qualified Supplemental Retirement Income Benefit. Director has
        elected a monthly, pre-tax deferral of board fees, committee fess and/or
        retainer in the amount of $0 per month for 0 months.

4.      Supplemental Retirement Income Benefit means an actuarially determined
        annual amount equal to Twelve Thousand Eight Hundred and Sixteen Dollars
        ($12,816) at age 65 if paid entirely from the Accrued Benefit Account or
        Eight Thousand Two Hundred and Two Dollars ($8,202) at age 65 if paid
        from the Retirement Income Trust Fund.

                                    Exhibit A

                                       35
<PAGE>

        The Supplemental Retirement Income Benefit:

        o       the definition of Supplemental Retirement Income Benefit has
                been incorporated into the Agreement for the sole purpose of
                actuarially establishing the amount of annual Contributions (or
                Phantom Contributions) to the Retirement Income Trust Fund (or
                Accrued Benefit Account). The amount of any actual retirement,
                pre-retirement or disability benefit payable pursuant to the
                Agreement will be a function of (i) the amount and timing of
                Contributions (or Phantom Contributions) to the Retirement
                Income Trust Fund (or Accrued Benefit Account) and (ii) the
                actual investment experience of such Contributions (or the
                monthly compounding rate of Phantom Contributions).

5.      Schedule of Annual Gross Contributions/Phantom Contributions

<TABLE>
<CAPTION>
Plan Year    Elective Contributions     Emeritus Contributions     Total Contributions
---------    ----------------------     ----------------------     -------------------
<S>                    <C>                       <C>                     <C>
2004                   $0                        $79,467                 $79,467
2005                    0                         30,511                  30,511
2006                    0                         20,297                  20,297
2007
2008
2009
2010
2011
</TABLE>

                               Exhibit A - Cont'd.

                                       36<PAGE>

                             FIRST AMENDMENT TO THE
                   DIRECTOR SUPPLEMENTAL RETIREMENT INCOME AND
                       DEFERRED COMPENSATION AGREEMENT FOR
                                SALVATORE ROMANO
                               MAGYAR SAVINGS BANK

Upon mutual consent and for valuable consideration hereby recognized, THE
DIRECTOR SUPPLEMENTAL RETIREMENT INCOME AND DEFERRED COMPENSATION AGREEMENT FOR
SALVATORE ROMANO IS hereby amended. The language below is immediately effective
for each listed section and supercedes all previous versions of these sections.

                                AMENDED SECTIONS

SUBSECTION 1.6 OF THE DIRECTOR SUPPLEMENTAL RETIREMENT INCOME AND DEFERRED
COMPENSATION AGREEMENT FOR SALVATORE ROMANO SHALL BE AMENDED AS FOLLOWS;

1.6     "Benefit Age" means the later of: (i) the Director's seventieth (70th)
        birthday or (ii) the actual date the Director's full-time service with
        the Bank terminates.

EXHIBIT A - REVISED 8/05 CONDITIONS, ASSUMPTIONS, AND SCHEDULE OF CONTRIBUTIONS
AND PHANTOM CONTRIBUTIONS

A new "Exhibit A - Revised 8/05" is also attached to reflect the new schedule of
contributions and the new Supplemental Retirement Income Benefit resulting from
the Director's change of Benefit Age.

All other provisions of THE DIRECTOR SUPPLEMENTAL RETIREMENT INCOME AND DEFERRED
COMPENSATION AGREEMENT FOR SALVATORE ROMANO which are not specifically modified
by this Amendement are hereby incorporated and shall remain in full force and
effect.

_______________________________ Date____________ Director Signature and Date

________________________________________________ Director Printed Name

_______________________________ Date____________ Bank Officer Signature and Date

________________________________________________ Bank Officer Printed Name/Title

<PAGE>

                            CONDITIONS, ASSUMPTIONS,
                                       AND
               SCHEDULE OF CONTRIBUTIONS AND PHANTOM CONTRIBUTIONS

1. Interest Factor - for purposes of:

        a.      the Accrued Benefit Account - shall be six percent (6%) per
                annum, compounded monthly.

        b.      the Elective Contributions - shall be ten percent (10%) per
                annum, compounded monthly.

        c.      the Emeritus Contributions - shall be six percent (6%) per
                annum, compounded monthly.

        d.      the Retirement Income Trust Fund - for purposes of annuitizing
                the balance of the Retirement Income Trust Fund over the Payout
                Period, the trustee of the Salvatore Romano Grantor Trust shall
                exercise discretion in selecting the appropriate rate given the
                nature of the investments contained in the Retirement Income
                Trust Fund and the expected return associated with the
                investments. For these purposes, if the trustee of the
                Retirement Income Trust Fund has purchased a life insurance
                policy, the trustee shall have the discretion to determine the
                portion of the cash value of such policy available for purposes
                of annuitizing the Retirement Income Trust Fund, in accordance
                with Section 2.3 of the Agreement.

2.      The amount of the annual Emeritus Contributions (or Phantom
        Contributions) to the Retirement Income Trust Fund (or Accrued Benefit
        Account) has been based on the annual interest-adjusted accounting
        accruals which would be required of the Bank through the earlier of the
        Director's death or Benefit Age, (i) pursuant to APB Opinion No. 12, as
        amended by FAS 106 and (ii) assuming a discount rate equal to six
        percent (6%) per annum, in order to provide a portion of the unfunded,
        non-qualified Supplemental Retirement Income Benefit. The Emeritus
        Contributions are calculated to support a benefit based upon 50% of the
        Director's total board fees, committee fees and/or retainer in the
        twelve months prior to Director's Benefit Eligibility Date.

3.      The amount of the annual Elective Contributions (or Phantom
        Contributions) to the Retirement Income Trust Fund (or Accrued Benefit
        Account) has been based on the annual interest-adjusted accounting
        accruals which would be required of the Bank through the earlier of the
        Director's death or Benefit Age, (i) pursuant to APB Opinion No. 12, as
        amended by FAS 106 and (ii) assuming a discount rate equal to ten
        percent (10%) per annum, in order to provide a portion of the unfunded,
        non-qualified Supplemental Retirement Income Benefit. Director has
        elected a monthly, pre-tax deferral of board fees, committee fess and/or
        retainer in the amount of $0 per month for 0 months.

4.      Supplemental Retirement Income Benefit means an actuarially determined
        annual amount equal to Sixteen Thousand Three Hundred and Fifty Dollars
        ($16,350) at age 70 if paid entirely from the Accrued Benefit Account or
        Ten Thousand four Hundred and Sixty-Four Dollars ($10,464) at age 70 if
        paid from the Retirement Income Trust Fund.

                            Exhibit A - Revised 8/05

<PAGE>

        The Supplemental Retirement Income Benefit:

        o       the definition of Supplemental Retirement Income Benefit has
                been incorporated into the Agreement for the sole purpose of
                actuarially establishing the amount of annual Contributions (or
                Phantom Contributions) to the Retirement Income Trust Fund (or
                Accrued Benefit Account). The amount of any actual retirement,
                pre-retirement or disability benefit payable pursuant to the
                Agreement will be a function of (i) the amount and timing of
                Contributions (or Phantom Contributions) to the Retirement
                Income Trust Fund (or Accrued Benefit Account) and (ii) the
                actual investment experience of such Contributions (or the
                monthly compounding rate of Phantom Contributions).

5.      Schedule of Annual Gross Contributions/Phantom Contributions

<TABLE>
<CAPTION>
PLAN YEAR    ELECTIVE CONTRIBUTIONS    EMERITUS CONTRIBUTIONS    TOTAL CONTRIBUTIONS
---------    ----------------------    ----------------------    -------------------
<S>                   <C>                       <C>                     <C>
2004                  $0                        $79,467                 $79,467
2005                   0                         30,511                  30,511
2006                   0                          7,979                   7,979
2007                   0                          8,545                   8,545
2008                   0                          9,150                   9,150
2009                   0                          9,798                   9,798
2010                   0                         10,491                  10,491
2011                   0                         10,322                  10,322
</TABLE>

                       Exhibit A - Revised 8/05 (Cont'd.)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}]]