<PAGE>

                                  TOLLAND BANK
                                   BONUS PLAN

         The purpose of the Tolland Bank Bonus Plan is to provide incentive for
each officer and employee of Tolland Bank to be rewarded for contributions
toward the corporate objective of enhancing shareholder value through increased
market share, higher earnings, and controlled expenses.

         The Bonus Plan will have three components:
                  1. Short Term Bonus
                  2. Long Term Bonus
                  3. Instant Reward

                                SHORT TERM BONUS

         Under this plan, the bonus pool is determined annually by measurement
of the Bank's annual average return on assets (ROA). For the purposes of
calculating the Short Term Bonus pool, the following schedule will be used:

                  ROA of .80  through    .99 =  80% payout
                  ROA of 1.00 through   1.19 = 100% payout 
                  ROA of 1.20 and above      = 120% payout

         The 100% guideline will equal up to 12% of estimated net operating
income (net income before taxes, plus loan loss provision, plus net gains/losses
on securities and assets, minus net loan chargeoffs). The bonus pool amount will
be recommended by management to the Personnel Committee for its approval and
ratification by the Board of Directors.

         It is not the intention of management to duplicate bonus payments which
may be made through other incentive arrangements. Therefore, employees will not
receive a bonus under this plan unless the amount from this plan is greater than
the incentive bonus payable for the same year under the other incentive
arrangement, in which case the difference will be paid under this plan. The
amount payable from other incentives will be deducted from the bonus pool for
this plan up to the bonus amount payable under this plan for each employee
involved.

         For payment of bonuses once the bonus pool is determined, the following
guidelines of percentage of base salary will apply:

         Senior Officers:
                  Level 10                  0 - 30%
                  Level 09 & 08             0 - 25%
                  Level 07                  0 - 20%
                  Level 06                  0 - 15%
 
                             1
<PAGE>

         All Other Officers:
                  All levels                0 - 10%

         All Non-Officer Exempt Employees:*
                  All levels                0 - 10%

         Non-Exempt Employees:*
                  All levels                0 -  5%, or a flat amount to be
                                                     determined by management


         *    These components of the short term bonus may be paid even if the
              ROA target is not reached, upon recommendation of management and
              approval of the Personnel Committee and ratification by the Board
              of Directors.

         Eligibility:
         
              All classes of employees are eligible. Bonuses for part-time
              employees will be adjusted to a portion of the full-time bonus as
              determined by management. The employee must have been with the
              Bank for the full year for which results are measured, and the
              recipient must be in the Bank's employ at the time the bonus is
              paid. Employees with a performance rating of 3 (does not meet
              expectations) are not eligible to receive a bonus.

         The Personnel Committee will recommend the bonus allotment for the
President/Chief Executive Officer. The percentage of base salary to be awarded
as a bonus to policy making officers other than the CEO will be based on the
recommendation of the CEO after evaluation of achievement of objective and
subjective goals established during the applicable calendar year. Bonus amounts
for other officers/employees will be approved by the CEO within the guidelines
established, and will be reported to the Personnel Committee.

         The Personnel Committee may vote to amend or rescind the plan at any
time. Bonuses are awarded entirely at the discretion of management and the Board
and are not intended to be binding on the company and may be withdrawn at any
time.

                                       2

<PAGE>
                                 LONG TERM BONUS

         Officers and key employees may receive long term bonus awards as
provided for by the 1997 Stock Incentive Plan for Directors, Officers and Key
Employees. This plan is intended to provide additional incentives to promote the
future success and growth of the Bank by providing participants with a direct
stake in the Bank and, in the case of officers and key executives, to encourage
qualified persons to seek and accept employment with the Bank.


                                 INSTANT REWARD

         The purpose of this plan is to reward an employee for an outstanding
accomplishment, upon recommendation by the employee's supervisor or another
manager, and upon approval by the senior officer in charge of the department and
the senior management team. Policy making officers are not eligible for the
instant reward bonus.

         Instant Rewards may be made for the following:

         1.  Outstanding effort beyond normal job responsibilities. This
             could be project related, or for coverage in the absence of
             another employee.

         2.  A suggestion which, when implemented, will solve a problem,
             save the Bank expense, or increase income.

         3.  A situation which is exposure related (e.g. check kiting
             scheme, potential fraud, etc.).

         4.  Significant deposit or loan account relationship success.

         5.  Outstanding customer service.

         6. Any act or effort deemed worthy of this reward by management.

         Reward amounts may range in size from $50 to $500.

         Management will recommend a flat amount to be set aside annually for
Instant Rewards as part of the budget process. Unused funds may be carried over
to the next calendar year.

                                       3