AMENDED AND RESTATED
EMPLOYEE SEVERANCE COMPENSATION PLAN
The primary purpose of the Polonia Bank Employee Severance Compensation Plan (the “Plan”) is to
ensure the successful continuation of the business of Polonia Bank (the “Bank”) and the fair and equitable
treatment of the Bank’s employees following a Change in Control (as defined below). The Bank has amended
and restated this Plan to conform with the requirements of Section 409A of the Internal Revenue Code of 1986,
as amended (the “Code”).
Subject to paragraph C below, any employee with at least one year of service as of his or her termination
date shall be eligible to receive a Change in Control Severance Benefit (as defined below) if, within the period
beginning on the effective date of a Change in Control and ending on the first anniversary of such date, (i) the
employee’s employment is involuntarily terminated or (ii) the employee terminates employment voluntarily after
being offered continued employment in a position that is not a Comparable Position (as defined below).
B. Covered Employees .
Limitations on Eligibility for Change in Control Severance Benefits or Management
Restructuring Benefits .
No employee shall be eligible for a Change in Control Severance Benefit if (a) his or her
employment is terminated for “Cause,” (b) he or she is offered a Comparable Position and
declines to accept such position, or (c) the employee is, at the time of termination of employment,
a party to an individual employment agreement or change in control agreement with the Bank
and/or Polonia Bancorp (the “Company).
For purposes of this Plan, a termination of employment for “Cause” shall include termination
because of the employee’s personal dishonesty, incompetence, willful misconduct, breach of
fiduciary duty involving personal profit, intentional failure to perform stated duties, willful violation
of any law, rule or regulation (other than traffic