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&lt;p style="margin: 0in 0in 0pt 27pt;"&gt;&lt;font style="font-size: 10pt; ; font-family: times new roman,times;"&gt;The Company has two 401(k)&amp;#160;profit sharing plans and trusts covering substantially all employees.&amp;#160; WaterStone Bank employees over 18 years of age are immediately eligible to participate in the Bank&amp;#8217;s Plan.&amp;#160; Waterstone Mortgage employees over 21 years of age are eligible to participate in its Plan as of the first of the month following their date of employment.&amp;#160; Participating employees may annually contribute pretax compensation in accordance with IRS limits.&amp;#160; The Company made a contribution of $70,000 to one of the Plans during the year ended December&amp;#160;31, 2012.&amp;#160; The Company made no contributions to the Plans during the years ended December&amp;#160;31, 2011 and 2010.&lt;/font&gt;&lt;/p&gt;
&lt;p style="margin: 0in 0in 0pt 27pt;"&gt;&lt;font style="font-size: 10pt; ; font-family: times new roman,times;"&gt;&amp;#160;&lt;/font&gt;&lt;/p&gt;
&lt;p style="margin: 0in 0in 0pt 27pt;"&gt;&lt;font style="font-family: times new roman,times;"&gt;&lt;font style="font-size: 10pt; ; font-family: times new roman;"&gt;The Company has a nonqualified salary continuation plan for one former employee. This agreement provides for payments of specific amounts over a 10-year period subsequent to the employee&amp;#8217;s retirement. The deferred compensation liability was accrued ratably to the employee&amp;#8217;s respective normal retirement date. Payments made to the retired employee reduce the liability.&amp;#160; As of December&amp;#160;31, 2012 and 2011, approximately $687,000 and $826,000 was accrued related to this plan. This agreement is funded by a life insurance policy with a death benefit of $6.4 million and a cash surrender value of $3.3 million and $2.9 million at December&amp;#160;31, 2012 and 2011, respectively. The former &lt;/font&gt;&lt;font style="font-size: 10pt; ; font-family: times new roman;"&gt;employee has no interest in this policy.&amp;#160; There was no expense for compensation under this agreement during the years ended December&amp;#160;31, 2012, 2011 and 2010.&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;&lt;/div&gt;</NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>The entire disclosure for pension and other postretirement benefits.</ElementDefenition><ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef

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