SEC Contract Filing

Filing Date: 2016-03-15

Document Content:
<DOCUMENT>
<TYPE>EX-10.7
<SEQUENCE>2
<FILENAME>exh_107.htm
<DESCRIPTION>EXHIBIT 10.7
<TEXT>
<HTML>
<HEAD>
 <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0"><B>Exhibit 10.7</B></P>

<P STYLE="margin: 0"><B>&nbsp;</B></P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0"><B>FLUSHING BANK</B></P>

<P STYLE="font-size: 10pt; font-weight: bold; text-align: center; margin: 0pt 0">SPECIFIED OFFICER</P>

<P STYLE="font-size: 10pt; font-weight: bold; text-align: center; margin: 0pt 0">CHANGE IN CONTROL SEVERANCE POLICY</P>

<P STYLE="font-size: 10pt; font-weight: bold; text-align: center; margin: 0pt 0">(AS AMENDED EFFECTIVE JANUARY 1, 2016)</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font-size: 10pt; font-weight: bold; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">1.</TD><TD><U>Term; Policy Effectiveness</U>.</TD></TR></TABLE>

<P STYLE="font-size: 10pt; text-align: justify; text-indent: 1in; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; text-indent: 1in; margin: 0pt 0">(a)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Policy shall apply to each employee
at the level of Senior Vice President or above in good standing of Flushing Bank (the &ldquo;Bank&rdquo;) (and to each employee
at the level of Assistant Vice President or above in good standing of the Bank who was a participant in this Policy as in effect
immediately prior to July 28, 2015) who is not party to an employment agreement with the Bank (an &ldquo;Employee&rdquo;) for the
period that both (i) such Employee is employed as such and (ii) this Policy is in effect in accordance with Section 1(b) below
(conjunctively, the &ldquo;Term&rdquo;); provided that if prior to January 1, 2009 such Employee is party to a written Special
Termination Agreement with the Company, then the term (without renewal) of such agreement shall continue in full force and effect
until terminated in accordance with the terms thereof and the Term hereof, if applicable, for such Employee shall commence immediately
upon such termination; and provided further that, notwithstanding the provisions of Section 1(b), the Term shall continue for such
Employee for a period of two years following a Change in Control (as defined in Section 2(b) below) that otherwise occurs during
the Term.</P>

<P STYLE="font-size: 10pt; text-align: justify; text-indent: 1in; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; text-indent: 1in; margin: 0pt 0">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;This Policy, as amended effective January
1, 2016, shall remain in effect through January 1, 2017, and such effectiveness shall be automatically renewed for an additional
one year period on January 1st, 2017 and on each succeeding January 1st thereafter, unless the Board of Directors or any officer
of the Bank, acting upon the authority thereof, shall resolve to not renew the Policy as of the next such January 1st; provided
that such resolution is adopted prior to such anniversary date and the participants under the Policy are notified of such non-renewal
within 60 days after such anniversary date.</P>

<P STYLE="font-size: 10pt; text-align: justify; text-indent: 1in; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; text-indent: 1in; margin: 0pt 0">(c)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the expiration of the Term, all rights,
benefits and obligations of Flushing Bank (the &ldquo;Bank&rdquo;) and Flushing Financial Corporation (the &ldquo;Holding Company&rdquo;)
hereunder shall terminate.</P>

<P STYLE="font-size: 10pt; text-align: justify; text-indent: 1in; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; text-indent: 1in; margin: 0pt 0">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;Notwithstanding anything in this Policy
to the contrary, the amendments to this Policy that became effective July 28, 2015 shall not apply to any employee who was covered
by this Policy immediately prior to July 28, 2015 (the &ldquo;Grandfathered Employees&rdquo;). The rights of the Grandfathered
Employees shall continue to be governed by the terms of the Policy as in effect immediately prior to July 28, 2015, except that
the definition of Change of Control in Section 2(b) below shall be applied in lieu of the definition of Change of Control that
was in effect immediately prior to July 28, 2015.</P>

<P STYLE="font-size: 10pt; text-align: justify; text-indent: 1in; margin: 0pt 0">&nbsp;</P>

<!-- Field: Page; Sequence: 1 -->
 <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 4pt solid">&nbsp;</DIV>
 <DIV STYLE="page-break-before: always; margin-top: 6pt">&nbsp;</DIV>
 <!-- Field: /Page -->

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font-size: 10pt; font-weight: bold; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">2.</TD><TD><U>Definitions</U>.</TD></TR></TABLE>

<P STYLE="font-size: 10pt; text-align: justify; text-indent: 1in; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; text-indent: 1in; margin: 0pt 0">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;&ldquo;<U>Cause</U>&rdquo; means the Employee&rsquo;s
(i) intentional engagement in dishonest conduct or willful misconduct, (ii) breach of fiduciary duty involving personal profit,
(iii) insubordination or intentional failure to perform stated duties, (iv) willful violation of the Bank&rsquo;s rules and policies
and other applicable laws, rules, or regulations, (v) conviction (including entry of a guilty or <I>nolo contendere</I> plea) of
a felony or any crime involving dishonesty or moral turpitude, (vi) ma