VALLEY NATIONAL BANCORP
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<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>ex101.htm
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<TITLE>Benefit Equalization Plan</TITLE>
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<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=right><FONT
face="Times New Roman" size=2><B>Exhibit 10.1 </B></FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>VALLEY NATIONAL </B></FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>BENEFIT EQUALIZATION PLAN </B></FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px" align=right><FONT
face="Times New Roman" size=2><B>PLAN DOCUMENT </B></FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>12/19/94 </B></FONT></P>
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<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><U>VALLEY NATIONAL BANCORP BENEFIT EQUALIZATION
PLAN </U></FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>Valley National Bancorp hereby adopts and restates
the Valley National Bancorp Benefit Equalization Plan (the &#147;Plan&#148;) in its
entirety effective January&nbsp;1, 1989. The terms of this Plan are applicable
only to Participants who are in the employ of Valley National Bancorp or Valley
National Bank on or after January&nbsp;1, 1989. The purpose of this Plan is to
attract and retain certain key officers by permitting them to enter into
agreements with the Valley National Bancorp or Valley National Bank which will
provide for the payment of a supplemental benefit on retirement, disability or
death. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>The Plan is intended to constitute an excess
benefit plan under Section&nbsp;3(36) of the Employee Retirement Income Security
Act of 1974, as amended (&#147;ERISA&#148;) with respect to that portion of the Plan which
provides benefits in excess of Section&nbsp;415 of the Internal Revenue Code of
1986, as amended (the &#147;Code&#148;) and an unfunded pension plan maintained primarily
for a select group of management or highly compensated employees with respect to
all other benefits provided hereunder. The Plan makes-up the amount of the
accrued benefits which cannot be provided under the Valley National Bank Pension
Plan (the &#147;Pension Plan&#148;) as a result of the limitations under
Section&nbsp;401(a) (17)&nbsp;of the Code on the amount of compensation which
can be taken into account under a qualified plan </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>-1- </FONT></P>
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<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>and the limitation under Section&nbsp;415 of the Code on the amount of
benefits which can be paid from a qualified plan. The Plan also restores the
amount of the accrued benefits which would have been payable under the terms of
the Pension Plan effective December&nbsp;31, 1988. The Plan is not a qualified
plan under the Code and benefits are paid directly by Valley National Bancorp or
Valley National Bank out of their general assets. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>-2- </FONT></P>
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<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>ARTICLE I </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Definitions </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>1.1 &#147;<U>Actuarial Equivalent</U>&#148; means an amount
or benefit of equal value based on a 5% interest rate and the 1951 Group Annuity
Table projected to 1967 with Scale C. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>1.2 &#147;<U>Average Annual Compensation</U>&#148; shall
mean the Participant&#146;s highest average Annual Compensation averaged over the
five (5)&nbsp;highest consecutive calendar year with the Employer after 1965 and
preceding the calendar year in which the participant terminates his employment
or the total period of service if less than five (5)&nbsp;years. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>1.3 &#147;<U>Average Social Security Limit</U>&#148; shall
mean one-twelfth of the average annual amount of wages covered under the Federal
Insurance Contribution Act during the period of calendar years ending with the
first year preceding such date and starting with the later of the 35th year
preceding such date or the year 1959. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>1.4 &#147;<U>Board of Directors</U>&#148; means the Board of
Directors of Valley National Bancorp. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>1.5 &#147;<U>Company</U>&#148; means Valley National
Bancorp, Valley National Bank, any successors thereto, and any of the Companys&#146;
subsidiaries which adopts the Plan with the consent of the Board of Directors.
</FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>1.6 &#147;<U>Compensation</U>&#148; shall mean a
Participant&#146;s annual rate of base earnings (excluding overtime, bonuses and any
other forms of additional compensation) paid to him for each calendar year
effective as of each January&nbsp;1. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>1.7 &#147;<u>Compensation Committee</u>&#148; means
the Compensation Committee of the Board of Directors. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>1.8 &#147;<U>Effective Date</U>&#148; shall mean
January&nbsp;1, 1989. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>-3- </FONT></P>
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<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>1.9 &#147;<U>Eligible Employee</U>&#148; means an officer
employed by the Company who is a participant in the Pension Plan, whose
Compensation exceeds the limit on compensation under
Section&nbsp;401(a)&nbsp;(17) of the Code and who has completed ten
(10)&nbsp;Years of Continuous Service with the Company, excluding any past
service credit granted under the terms of the Pension Plan for employment with
an entity that was not a member of the controlled group of corporations that
includes Valley National Bancorp at the time the service was rendered.
</FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>1.10 &#147;<U>Normal Retirement Date</U>&#148; means the
Normal Retirement Date as defined in the Pension Plan. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>1.11 &#147;<U>Participant</U>&#148; means an Eligible
Employee who becomes a Participant pursuant to Article II. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>1.12 &#147;<U>Participation Agreement</U>&#148; means the
written agreement between the Company and the Participant setting forth certain
provisions related to the Plan, incorporating the terms and conditions of the
Plan and authorizing an Eligible Employee&#146;s participation in the Plan.
</FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>1.13 &#147;<U>Pension Plan</U>&#148; means the Valley
National Bank Pension Plan. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>1.14 &#147;<U>Pension Plan Benefit</U>&#148; means the
annual retirement benefit payable to or on account of a Participant from the
Pension Plan. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>1.15 &#147;<U>Plan</U>&#148; means this Valley National
Bancorp Benefit Equalization Plan, as set forth herein, as amended from time to
time. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>1.16 &#147;<u>Plan Administrator</u>&#148;
means the Valley National Bancorp or any committee designated by the Board of
Directors. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>1.17 &#147;<U>Plan Year</U>&#148; means each twelve
(12)&nbsp;consecutive month period commencing each January&nbsp;1 and ending on
the following December&nbsp;31. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>-4- </FONT></P>
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<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>1.18 &#147;<U>Social Security</U>&#148; shall mean the
Participant&#146;s estimated monthly primary insurance amount under Title II of the
Social Security Act, as in effect at the time his employment is terminated, to
which the Participant would be entitled upon proper application at age 65,
assuming he continued to receive wages in all future years at his rate of annual
Compensation in the year of termination, and irrespective of any voluntary act
of the Participant which disqualifies him from receiving such amount.
</FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>1.19 &#147;<U>SERP Benefit</U>&#148; means the annual
retirement benefit payable pursuant to the terms of this Plan. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>1.20 &#147;<U>Years of Credited Service</U>&#148; means
years of Credited Service as defined in the Pension Plan. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>1.21 &#147;<U>Years of Continuous Service</U>&#148; means
years of Continuous Service as defined under the Pension Plan. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>1.22 Any defined term which is not set forth in
Article I of this Plan, shall be defined pursuant to the terms of the Pension
Plan. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>1.23 For purposes of this Plan, unless the context
requires otherwise, the masculine includes the feminine, the singular the
plural, and vice-versa. Any reference to a &#147;Section&#148; or &#147;Article&#148; shall mean the
indicated section or article of this Plan unless otherwise specified.
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>-5- </FONT></P>
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<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>ARTICLE II </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Participation </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>Any Eligible Employee who was a Participant in
this Plan on the day prior to the date the Board of Directors adopts this
restatement shall remain a Participant herein. Each other Eligible Employee
shall become a Participant on the first day of the month following appointment
to the Plan by the Compensation Committee and execution of a Participation
Agreement. The Compensation Committee shall, in its sole and absolute
discretion, select which Eligible Employees shall be appointed as Participants.
The decision of the Compensation Committee shall be conclusive and binding on
all persons. A Participant shall remain a Participant hereunder until the later
of his termination of employment with the Company or the date he is no longer
entitled to benefits under the Plan. </FONT></P>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>ARTICLE III </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>SERP Benefit </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>3.1 <U>Amount of SERP Benefit</U>. Each
Participant who qualifies for a Normal, Early, Disability or Deferred Pension
Plan Benefit shall be entitled to a SERP Benefit equal to (a)&nbsp;minus
(b)&nbsp;as follows: </FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD width="4%"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=top align=left width="4%"><FONT face="Times New Roman"
      size=2>(a)</FONT></TD>
    <TD vAlign=top align=left><FONT face="Times New Roman" size=2>The sum of:
      </FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 8%"><FONT
face="Times New Roman" size=2>(i) .75% of the Participant&#146;s Average Annual
Compensation not in excess of his Average Social Security Limit multiplied by
his Years of Credited Service up to 40; plus </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>-6- </FONT></P>
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<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 8%"><FONT
face="Times New Roman" size=2>(ii) 1.25% of the Participant&#146;s Average Annual
Compensation in excess of his Average Social Security Limit multiplied by his
Years of Credited Service up to 40, expressed as a straight life annuity with no
ancillary benefits; </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>minus </FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD width="4%"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=top align=left width="4%"><FONT face="Times New Roman"
      size=2>(b)</FONT></TD>
    <TD vAlign=top align=left><FONT face="Times New Roman" size=2>the
      Participant&#146;s Pension Plan Benefit expressed as a straight life annuity
      with no ancillary benefits. </FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>The amount calculated pursuant to Section&nbsp;3.1(a)&nbsp;shall be
adjusted as set forth in the Pension Plan for any Participant who is entitled to
an Early or Disability Pension Plan Benefit and for the form of benefit selected
by the Participant under the Pension Plan. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>3.2 <U>Benefits Upon Reemployment</U>. If a
Participant is rehired after he is entitled to a SERP Benefit his SERP Benefit
shall not be paid during such period of reemployment prior to Normal Retirement
Date, but shall commence or resume not sooner than the first day of the month
following his subsequent retirement or separation. The SERP Benefit payable
after his subsequent retirement or separation shall be the benefits earlier
applicable, plus any additional benefits computed in accordance with
Section&nbsp;3.1 insofar as additional employment entitled him to additional
benefits. </FONT></P>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>ARTICLE IV </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Vesting </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>A Participant shall be fully vested in his SERP
Benefit; provided, however, that the Participant&#146;s rights to benefits under this
Plan shall be forfeited if a Participant is discharged on account of an act of
fraud, larceny, misappropriation or embezzlement committed against the Company.
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>-7- </FONT></P>
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<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>ARTICLE V </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Death Benefits </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>A death benefit shall be payable under this Plan
if a vested Participant dies and at such time his spouse is entitled to a
Preretirement Survivor Annuity under the Pension Plan. The death benefit payable
to the Participant&#146;s surviving spouse shall be an annuity payable for the
spouse&#146;s life equal to 66 2/3% of the benefit calculated pursuant to
Section&nbsp;3.1 hereof, adjusted for payment in the form of a qualified joint
and 2/3 survivor annuity, based on the factors used for the Pension Plan. A
death benefit payable to a surviving spouse under this Plan will cease at the
same time the survivor benefit is terminated under the Pension Plan. </FONT></P>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>ARTICLE VI </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Form of Payment </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>A Participant&#146;s SERP Benefit payable under Article
III of this Plan will be paid in the same form and beginning at the same time as
the Participant&#146;s Pension Plan Benefit under the Pension Plan. A Participant&#146;s
designation of a joint annuitant and/or beneficiary under the Pension Plan will
also apply to his SERP Benefit. </FONT></P>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>ARTICLE VII </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Administration </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>7.1 <U>Plan Administrator</U>. The Plan
Administrator shall supervise the daily management and administration of the
Plan. The Plan Administrator shall serve without compensation. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>-8- </FONT></P>
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<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>7.2 <U>Responsibilities and Powers of the Plan
Administrator</U>. The Plan Administrator shall have the responsibility:
</FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 4%"><FONT
face="Times New Roman" size=2>(a) To administer the Plan in accordance with the
terms hereof, and to exercise all powers specifically conferred upon the Plan
Administrator hereby or necessary to carry out the provisions thereof.
</FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 4%"><FONT
face="Times New Roman" size=2>(b) To construe this Plan, which construction
shall be conclusive, correct any defects, supply omissions, and reconcile
inconsistencies to the extent necessary to effectuate the Plan. </FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 4%"><FONT
face="Times New Roman" size=2>(c) To keep all records relating to Participants
of the Plan and such other records as are necessary for proper operation of the
Plan. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>7.3 <U>Operation of the Plan Administrator</U>. In
carrying out the Plan Administrator&#146;s functions hereunder: </FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 4%"><FONT
face="Times New Roman" size=2>(a) The Plan Administrator may adopt rules and
regulations necessary for the administration of the Plan and which are
consistent with the provisions hereof. </FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 4%"><FONT
face="Times New Roman" size=2>(b) If the Plan Administrator is a committee, all
acts and decisions of the Plan Administrator shall be approved by a majority of
the members of the committee. All decisions shall apply uniformly to all
Participants in like circumstances. Written records shall be kept of all acts
and decisions. </FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 4%"><FONT
face="Times New Roman" size=2>(c) If the Plan Administrator is a committee, the
Plan Administrator may authorize one or more of its members to act on its
behalf. The Plan Administrator may also delegate, in writing, any of its
responsibilities and powers to an individual(s)&nbsp;who is not a member of the
committee. </FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 4%"><FONT
face="Times New Roman" size=2>(d) The Plan Administrator shall have the right to
hire, at the expense of the Company, such professional assistants and
consultants as it, in its sole discretion, deems necessary or advisable,
including, but not limited to, accountants, actuaries, consultants, counsel and
such clerical assistance as is necessary for proper discharge of its duties.
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>-9- </FONT></P>
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<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>7.4 <U>Indemnification</U>. In addition to any
other indemnification that a fiduciary, including but not limited to a member of
the Plan Administrator or Compensation Committee, is entitled to, the Company
shall indemnify such fiduciary from all claims for liability, loss or damage
(including payment of expenses in connection with defense against such claim)
arising from any act or failure to act which constitutes a breach of such
individual&#146;s fiduciary responsibilities with respect to this Plan. </FONT></P>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>ARTICLE VIII </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Miscellaneous </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>8.1 <U>Benefits Payable by the Company</U>. All
benefits payable under this Plan constitute an unfunded obligation of the
Company. Payments shall be made, as due, from the general funds of the Company.
The Company, at its option, may maintain one or more bookkeeping reserve
accounts to reflect its obligations under the Plan and may make such investments
as it may deems desirable to assist it in meeting with obligations. Any such
investments shall be assets of the Company subject to claims of its general
creditors. No person eligible for a benefit under this Plan shall have any
right, title to interest in any such investments. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>-10- </FONT></P>
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<HR align=center width="100%" color=#999999 SIZE=3>

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>8.2 <U>Amendment or Termination</U>. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>(a) The Board of Directors reserves the right to
amend, modify, restate or terminate the Plan; provided, however, that no such
action by the Board of Directors shall reduce a Participant&#146;s SERP Benefit
accrued as of the time thereof. The provisions of this Section prohibiting an
action by the Board of Directors which would reduce a Participant&#146;s accrued SERP
Benefit cannot be amended without the consent of all Participants (including
those who have retired). Any amendment to the Plan shall be made in writing by
the Board of Directors, with or without a meeting, or shall be made in writing
by the Plan Administrator or Compensation Plan Administrator, to the extent that
Board of Directors has specifically delegated the authority to make such
amendment to the Plan the Plan Administrator or Compensation Plan Administrator.
</FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>(b) If the plan is terminated, a determination
shall be made of each Participant&#146;s SERP Benefit as of the Plan termination date
(determined in accordance with Section&nbsp;8.2(a)). The amount of such benefits
shall be payable to the Participant at the time it would have been payable under
Article VI if the Plan had not been terminated. No interest shall be credited on
a SERP Benefit. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>8.3 <U>Status of Employment</U>. Nothing herein
contained shall be construed as conferring any rights upon any Participant or
any person for a continuation of employment, nor shall it be construed as
limiting in any way the right of the Company to discharge any Participant or to
treat him without regard to the effect which such treatment might have upon him
as a Participant of the Plan. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>8.4 <U>Payments to Minors and Incompetents</U>. If
a Participant or beneficiary entitled to receive any benefits hereunder is a
minor or is deemed by the Plan Administrator or is </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>-11- </FONT></P>
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<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>adjudged to be legally incapable of giving valid receipt and discharge
for such benefits, they will be paid to the duly appointed guardian of such
minor or incompetent or to such other legally appointed person as the Plan
Administrator might designate. Such payment shall, to the extent made, be deemed
a complete discharge of any liability for such payment under the Plan.
</FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>8.5 <U>Inalienability of Benefits</U>. The right
of any person to any benefit or payment under the Plan shall not be subject to
voluntary or involuntary transfer, alienation or assignment, and, to the fullest
extent permitted by law, shall not be subject to attachment, execution,
garnishment, sequestration or other legal or equitable process. In the event a
person who is receiving or is entitled to receive benefits under the Plan
attempts to assign, transfer or dispose of such right, or if an attempt is made
to subject said right to such process, such assignment, transfer or disposition
shall be null and void. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>8.6 <U>Arbitration</U>. The parties agree that any
dispute or claim arising out of or relating to this Plan, including whether such
disputes or claims are arbitrable, will be settled by binding arbitration. The
arbitration proceeding will be conducted before a single arbitrator at a
location within the State of New Jersey convenient to the parties and under the
rules of the American Arbitration Association. The decision or award of the
Arbitrator made under these rules shall be exclusive, final and binding on both
parties, their beneficiaries, executors, administrators, successors and assigns.
This arbitration procedure may be invoked </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>-12- </FONT></P>
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<HR align=center width="100%" color=#999999 SIZE=3>

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>by written notice to the American Arbitration Association stating with
particularity the issue proposed for arbitration. A copy of that written notice
shall be served upon the other party by registered mail. In the event of a
Change in Control as defined in the Participation Agreement, this
Section&nbsp;8.6 will cease to apply. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>8.7 <U>Governing Law</U>.&nbsp; Except to the extent
pre-empted by federal law, the provisions of the Plan will be construed
according to the laws of the State of New Jersey. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT
face="Times New Roman" size=2>IN WITNESS WHEREOF, the Board of Directors has
directed its duly authorized officer to set his hand this 19th day of
December, 1994 effective as of January&nbsp;1,
1989. </FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<DIV align=right>
<TABLE cellSpacing=0 cellPadding=0 width="40%" border=0>

  <TR>
    <TD width="7%"></TD>
    <TD vAlign=bottom width="1%"></TD>
    <TD width="92%"></TD></TR>
  <TR>
    <TD vAlign=top colSpan=3>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>VALLEY NATIONAL BANCORP</FONT></P></TD></TR>
  <TR>
    <TD height=16></TD>
    <TD colSpan=2 height=16></TD></TR>
  <TR>
    <TD vAlign=top><FONT face="Times New Roman" size=2>By:</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom><FONT
      size=1>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>/s/ Robert E. McEntee</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Robert E. McEntee</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <P
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Chairman VNB Personnel</FONT></P>
      <P
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>and Compensation</FONT></P>
      <P
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Committee of the Board</FONT></P>
      <P
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>of
Directors</FONT></P></TD></TR></TABLE></DIV>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>-13- </FONT></P></BODY></HTML>
</TEXT>
</DOCUMENT>
