<PAGE>

                                                                    Exhibit 10.5

                                    FORM OF
                                 BERKSHIRE BANK
                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
<PAGE>

                                    Form of
                                Berkshire Bank
                    Supplemental Executive Retirement Plan

                               Table of Contents

<TABLE>
<CAPTION>


<S>                                               <C>
Article I - Introduction..........................  1

Article II - Definitions..........................  2

Article III - Eligibility and Participation.......  5

Article IV - Benefits.............................  6

Article V - Accounts..............................  8

Article VI - Supplemental Benefit Payments........  9

Article VII - Claims Procedures................... 10

Article VIII - Amendment and Termination.......... 12

Article IX - General Provisions................... 13

</TABLE>
                                       i
<PAGE>

                                   Article I
                                  Introduction

Section 1.01   Purpose, Design and Intent.
               --------------------------

(a)  The purpose of the Berkshire Bank Supplemental Executive Retirement Plan
     (the "Plan") is to assist Berkshire Bank (the "Bank") and its affiliates in
     retaining the services of key employees until their retirement, to induce
     such employees to use their best efforts to enhance the business of the
     Bank and its affiliates, and to provide certain supplemental retirement
     benefits to such employees.

(b)  The Plan, in relevant part, is intended to constitute an unfunded "excess
     benefit plan" as defined in Section 3(36) of the Employee Retirement Income
     Security Act of 1974, as amended.  The Plan is specifically designed to
     provide certain key employees with retirement benefits that would have been
     provided under various tax-qualified retirement plans sponsored by the Bank
     but for the applicable limitations placed on benefits and contributions
     under such plans by various provisions of the Internal Revenue Code of
     1986, as amended.

                                       1
<PAGE>

                                   Article II
                                  Definitions

Section 2.01   Definitions.   In this Plan, whenever the context so indicates,
               -----------
the singular or the plural number and the masculine or feminine gender shall be
deemed to include the other, the terms "he," "his," and "him," shall refer to a
Participant or a beneficiary of a Participant, as the case may be, and, except
as otherwise provided, or unless the context otherwise requires, the capitalized
terms shall have the following meanings:

(a)  "Affiliate" means any corporation, trade or business, which, at the time of
reference, is together with the Bank, a member of a controlled group of
corporations, a group of trades or businesses (whether or not incorporated)
under common control, or an affiliated service group, as described in Sections
414(b), 414(c), and 414(m) of the Code, respectively, or any other organization
treated as a single employer with the Bank under Section 414(o) of the Code.

(b) "Applicable Limitations" means one or more of the following, as applicable:

     (i) the maximum limitation on annual benefits payable by a tax-qualified
     defined benefit plan under Section 415(b) of the Code;

     (ii) the maximum limitations on annual additions to a tax-qualified defined
     contribution plan under Section 415(c) of the Code;

     (iii) the maximum limitation on the annual amount of compensation that
     may, under Section 401(a)(17) of the Code, be taken into account in
     determining contributions to and benefits under tax-qualified plans; and

     (iv) the maximum limitations, under Sections 401(k), 401(m), or 402(g) of
     the Code, on pre-tax contributions that may be made to a qualified defined
     contribution plan.

(c) "Bank" means Berkshire Bank, and its successors.

(d) "Board of Directors" means the Board of Directors of the Bank.

(e) "Change in Control" means, with respect to the Bank or the Company, an event
of a nature that: (i) would be required to be reported in response to Item 1(a)
of the current report on Form 8-K, as in effect on the date hereof, pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934 (the "Exchange Act");
or (ii) results in a Change in Control of the Bank or the Holding Company within
the meaning of the Change in Bank Control Act and the Rules and Regulations
promulgated by the Federal Deposit Insurance Corporation ("FDIC") at 12 C.F.R.
(S) 303.4(a) with respect to the Bank and the Board of Governors of the Federal
Reserve System ("FRB") at 12 C.F.R. (S) 225.41(b) with respect to the Holding
Company, as in effect on the date hereof; or (iii) results in a transaction
requiring prior FRB approval under the Bank Holding Company Act of 1956 and the

                                       2
<PAGE>

regulations promulgated thereunder by the FRB at 12 C.F.R. (S) 225.11, as in
effect on the date hereof except for the Holding Company's acquisition of the
Bank; or (iv) without limitation such a Change in Control shall be deemed to
have occurred at such time as (A) any "person" (as the term is used in Sections
13(d) and 14(d) of the Exchange Act) is or becomes the "beneficial owner" (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Bank or the Holding Company representing 20% or more of the
Bank's or the Holding Company's outstanding securities except for any securities
of the Bank purchased by the Holding Company in connection with the conversion
of the Bank to the stock form and any securities purchased by any tax qualified
employee benefit plan of the Bank; or (B) individuals who constitute the Board
of Directors on the date hereof (the "Incumbent Board") cease for any reason to
constitute at least a majority thereof, provided that any person becoming a
director subsequent to the date hereof whose election was approved by a vote of
at least three-quarters of the directors comprising the Incumbent Board, or
whose nomination for election by the Holding Company's stockholders was approved
by the same Nominating Committee serving under an Incumbent Board, shall be, for
purposes of this clause (B), considered as though he were a member of the
Incumbent Board; or (C) a plan of reorganization, merger, consolidation, sale of
all or substantially all the assets of the Bank or the Holding Company or
similar transaction occurs in which the Bank or Holding Company is not the
resulting entity; or (D) solicitations of shareholders of the Holding Company,
by someone other than the current management of the Holding Company, seeking
stockholder approval of a plan or reorganization, merger of consolidation of the
Holding Company or Bank or similar transaction with one or more corporations as
a result of which the outstanding shares of the class of securities then subject
to the plan or transaction are exchanged for or converted into cash or property
or securities not issued by the Bank or the Holding Company shall be
distributed; or (E) a tender offer is made for 20% or more of the voting
securities of the Bank or the Holding Company.

(f) "Code" means the Internal Revenue Code of 1986, as amended.

(g) "Committee" means the person(s) designated by the Board of Directors,
pursuant to Section 9.02 of the Plan, to administer the Plan.

(h) "Common Stock" means the common stock of the Company.

(i) "Company" means Berkshire Hills Bancorp, Inc. and its successors.

(j) "Eligible Individual" means any Employee of the Bank or an Affiliate who
participates in the ESOP or the Savings Plan, as the case may be, and whom the
Board of Directors determines is one of a "select group of management or highly
compensated employees," as such phrase is used for purposes of Sections 101,
201, and 301 of ERISA.

(k) "Employee" means any person employed by the Bank or an Affiliate.

(l) "Employer" means the Bank or Affiliate that employs the Employee.

                                       3
<PAGE>

(m) "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended.

(n) "ESOP" means the Berkshire Bank Employee Stock Ownership Plan, as amended
from time to time.

(o) "ESOP Acquisition Loan" means a loan or other extension of credit incurred
by the trustee of the ESOP in connection with the purchase of Common Stock on
behalf of the ESOP.

(p) "ESOP Valuation Date" means any day as of which the investment experience of
the trust fund of the ESOP is determined and individuals' accounts under the
ESOP are adjusted accordingly.

(q) "Effective Date" means [January 1, 2000].

(r) "Participant" means an Eligible Employee who is entitled to benefits under
the Plan.

(s) "Plan" means this Berkshire Bank Supplemental Executive Retirement Plan.

(t) "Retirement" means termination of employment at any time following the
satisfaction the requirements for early or normal retirement under either the
ESOP or the Savings Plan, as appropriate.

(u) "Savings Plan" means the Berkshire Bank 401(k) Plan in the SBERA Trust, and
as amended from time to time.

(v) "Supplemental ESOP Account" means an account established by an Employer,
pursuant to Section 5.01 of the Plan, with respect to a Participant's
Supplemental ESOP Benefit.

(w) "Supplemental ESOP Benefit" means the benefit credited to a Participant
pursuant to Section 4.01 of the Plan.

(x) "Supplemental Savings Benefit" means the benefit credited to a Participant
pursuant to Section 4.03 of the Plan.

(y) "Supplemental Savings Account" means an account established by an Employer,
pursuant to Section 5.03 of the Plan, with respect to a Participant Supplement
Savings Benefit.

(z) "Supplemental Stock Ownership Account" means an account established by an
Employer, pursuant to Section 5.02 of the Plan, with respect to a Participant's
Supplemental Stock Ownership Benefit.

(aa) "Supplemental Stock Ownership Benefit" means the benefit credited to a
Participant pursuant to Section 4.02 of the Plan.

                                       4
<PAGE>

                                  Article III
                         Eligibility and Participation

 Section 3.01  Eligibility and Participation.
               -----------------------------

(a)  Each Eligible Employee may participate in the Plan.  An Eligible Employee
     shall become a Participant in the Plan upon designation as such by the
     Board of Directors.  An Eligible Employee whom the Board of Directors
     designates as a Participant in the Plan shall commence participation as of
     the date established by the Board of Directors.  The Board of Directors
     shall establish an Eligible Employee's date of participation at the same
     time it designates the Eligible Employee as a Participant in the Plan.

(b)  The Board of Directors may, at any time, designate an Eligible Employee as
     a Participant for any or all supplemental benefits provided for under
     Article IV of the Plan.

                                       5
<PAGE>

                                   Article IV
                                    Benefits

 Section 4.01  Supplemental ESOP Benefit.
               -------------------------

As of the last day of each plan year of the ESOP, the Employer shall credit the
Participant's Supplemental ESOP Account with a Supplemental ESOP Benefit equal
to the excess of (a) over (b), where:

(a) Equals the annual contributions made by the Employer and/or the number of
    shares of Common Stock released for allocation in connection with the
    repayment of an ESOP Acquisition Loan that would otherwise be allocated to
    the accounts of the Participant under the ESOP for the applicable plan year
    if the provisions of the ESOP were administered without regard to and of the
    Applicable Limitations; and

(b) Equals the annual contributions made by the Employer and for the number of
    shares of common stock released for allocation in connection with the
    repayment of an ESOP Acquisition Loan that are actually allocated to the
    accounts of the Participant under the provisions of the ESOP for that
    particular plan year after giving effect to any reduction of such allocation
    required by the limitations imposed by any of the Applicable Limitations.

 Section 4.02  Supplemental Stock Ownership Benefit.
               ------------------------------------

(a) Upon a Change in Control, the Employer shall credit to the Participant's
    Supplemental Stock Ownership Account a Supplemental Stock Ownership Benefit
    equal to (i) less (ii), the result of which is multiplied by (iii), where:

   (i) Equals the total number of shares of Common Stock acquired with the
       proceeds of all ESOP Acquisition Loans (together with any dividends, cash
       proceeds, or other medium related to such ESOP Acquisition Loans) that
       would have been allocated or credited for the benefit of the Participant
       under the ESOP and/or this Plan, as the case may be, had the Participant
       continued in the employ of the Employer through the first ESOP Valuation
       Date following the last scheduled payment of principal and interest on
       all ESOP Acquisition Loans outstanding at the time of the Change in
       Control; and

   (ii)  Equals the total number of shares of Common Stock acquired with the
        proceeds of all ESOP Acquisition Loans (together with any dividends,
        cash proceeds, or other medium related to such ESOP acquisition Loans)
        and allocated for the benefit of the Participant under the ESOP and this
        Plan as of the first ESOP Valuation Date following the Change in
        Control; and

   (iii)  Equals the fair market value of Common Stock immediately preceding the
   Change in Control.

                                       6
<PAGE>

(b) For purposes of clause: (i) of subsection (a) of this Section 4.02, the
    total number of shares of Common Stock shall be determined by multiplying
    the sum of (i) and (ii) by (iii), where:

    (i)  equals the average of the total shares of Common Stock  acquired with
         the proceeds of an ESOP Acquisition Loan and allocated for the
         benefit of the Participant under the ESOP as of three most recent
         ESOP Valuation Dates preceding the Participant's Retirement (or
         lesser number if the Participant has not participated in the ESOP for
         three full years);

   (ii)  equals the average number of shares of Common Stock credited to the
         Participant's Supplemental ESOP Account for the three most recent
         plan years of the ESOP (such that the three recent plan years
         coincide with the three most recent ESOP Valuation Dates referred to
         in (i) above); and

   (iii) equals the total number of scheduled annual payments remaining on the
         ESOP Acquisition Loans as of the Change in Control.

Section 4.03   Supplemental Savings Benefit.
               ----------------------------

A Participant's Supplemental Savings Benefit under the Plan shall be equal to
the excess of (a) over (b), where:

(a) is the sum of the matching contributions and other contributions of the
    Employer that would otherwise be allocated to an account of the Participant
    under the Savings Plan for a particular year if the provisions of the
    Savings Plan were administered without regard to any of the Applicable
    Limitations; and

(b) is the sum of the matching contributions and other contributions of the
    Employer that are actually allocated on account of the Participant under the
    provisions of the Savings Plan for that particular year after giving effect
    to any reduction of such allocation required by any of the Applicable
    Limitations.

                                       7
<PAGE>

                                   Article V
                                    Accounts

Section 5.01  Supplemental ESOP Benefit Account.
              ---------------------------------

For each Participant who is credited with a benefit pursuant to Section 4.01 of
the Plan, the Employer shall establish, as a memorandum account on its books, a
Supplemental ESOP Account. Each year, the Committee shall credit to the
Participant's Supplemental ESOP Account the amount of benefits determined under
Section 4.01 of the Plan for that year.  The Committee shall credit the account
with an amount equal to the appropriate number of shares of Common Stock or
other medium of contribution that would have otherwise been made to the
Participant's accounts under the ESOP but for the limitations imposed by the
Code.  Shares of Common Stock shall be valued under this Plan in the same manner
as under the ESOP.  Cash contributions credited to a Participant's Supplemental
ESOP Account shall be credited annually with interest at a rate equal to the
combined weighted return provided to the Participant's non-stock accounts under
the ESOP.

Section 5.02  Supplemental Stock Ownership Account.
              ------------------------------------

The Employer shall establish, as a memorandum account on its books, a
Supplemental Stock Ownership Account.  Upon a Change in Control, the Committee
shall credit to the Participant's Supplemental Stock Ownership Account the
amount of benefits determined under Section 4.02 of the Plan.  The Committee
shall credit the account with an amount equal to the appropriate number of
shares of Common Stock or other medium of contribution that would have otherwise
been made to the Participant's accounts under the ESOP but for the Participant's
Retirement.  Shares of Common Stock shall be valued under this Plan in the same
manner as under the ESOP.  Cash contributions credited to a Participant's
Supplemental Stock Ownership Account shall be credited annually with interest at
a rate equal to the combined weighted return provided to the Participant's non-
stock accounts under the ESOP.

Section 5.03   Supplemental Savings Account.
               ----------------------------

The Employer shall establish a memorandum account, the "Supplemental Savings
Account" for each Participant on its books, and each year the Committee will
credit the amount of contributions determined under Section 4.03 of the Plan.
Contributions credited to a Participant's Supplemental Savings Account shall be
credited monthly with interest at a rate equal to the combined weighted return
provided to the Participant's matching contribution and/or other Employer
contribution account(s) under the Savings Plan.

                                       8
<PAGE>

                                   Article VI
                         Supplemental Benefit Payments

Section 6.01  Payment of Supplemental ESOP Benefit.
              ------------------------------------

(a) A Participant's Supplemental ESOP Benefit shall be paid to the Participant
    or in the event of the Participant's death, to his beneficiary in the same
    form, time and medium (i.e., cash and/or shares of Common Stock) as his
    benefits are paid under the ESOP.

(b) A Participant shall have a non-forfeitable right to the Supplemental ESOP
    Benefit credited to him under this Plan in the same percentage as he has to
    benefits allocated to him under the ESOP at the time the benefits become
    distributable to him under the ESOP.

 Section 6.02  Payment of Supplemental Stock Ownership Benefit.
               -----------------------------------------------

(a) A Participant's Supplemental Stock Ownership Benefit shall be paid to the
    Participant or in the event of the Participant's death, to his beneficiary
    in the same form, time and medium (i.e., cash and/or shares of Common Stock)
    as his benefits are paid under the ESOP.

(b) A Participant shall always have a fully non-forfeitable right to the
    Supplemental Stock Ownership Benefit credited to him under this Plan.

Section 6.03   Payment of Supplemental Savings Benefit.
               ---------------------------------------

(a) A Participant's Supplemental Savings Benefit shall be paid to the
    Participant or in the event of the Participant's death, to his beneficiary
    in the same form, and at the same time as his benefits are paid under the
    Savings Plan.

(b) A Participant shall have a non-forfeitable right to his Supplemental Savings
    Benefit under this Plan in the same percentage as he has to his accrued
    benefits under the Savings Plan at the time the benefits become
    distributable to him under the Savings Plan.

Section 6.03   Alternative Payment of Benefits.
               -------------------------------

Notwithstanding the other provisions of this Article VI, a Participant may, with
prior written consent of the Committee and upon such terms and conditions as the
Committee may impose, request that the Supplemental ESOP Benefit and/or the
Supplemental Stock Ownership Benefit and/or the Supplemental Savings Benefit  to
which he is entitled be paid commencing at a different time, over a different
period, in a different form, or to different persons, than the benefit to which
he or his beneficiary may be entitled under the ESOP or the Savings Plan.

                                       9
<PAGE>

                                  Article VII
                               Claims Procedures

Section 7.01  Claims Reviewer.
              ---------------

For purposes of handling claims with respect to this Plan, the "Claims Reviewer"
shall be the Committee, unless the Committee designates another person or group
of persons as Claims Reviewer.

Section 7.02  Claims Procedure.
              ----------------

(a) An initial claim for benefits under the Plan must be made by the Participant
    or his or her beneficiary or beneficiaries in accordance with the terms of
    this Section 7.02.

(b) Not later than ninety (90) days after receipt of such a claim, the Claims
    Reviewer will render a written decision on the claim to the claimant, unless
    special circumstances require the extension of such 90-day period.  If such
    extension is necessary, the Claims Reviewer shall provide the Participant or
    the Participant's beneficiary or beneficiaries with written notification of
    such extension before the expiration of the initial 90-day period.  Such
    notice shall specify the reason or reasons for the extension and the date by
    which a final decision can be expected. In no event shall such extension
    exceed a period of ninety (90) days from the end of the initial 90-day
    period.

(c) In the event the Claims Reviewer denies the claim of a Participant or any
    beneficiary in whole or in part, the Claims Reviewer's written notification
    shall specify, in a manner calculated to be understood by the claimant, the
    reason for the denial; a reference to the Plan or other document or form
    that is the basis for the denial; a description of any additional material
    or information necessary for the claimant to perfect the claim; an
    explanation as to why such information or material is necessary; and an
    explanation of the applicable claims procedure.

(d) Should the claim be denied in whole or in part and should the claimant be
    dissatisfied with the Claims Reviewer's disposition of the claimant's claim,
    the claimant may have a full and fair review of the claim by the Committee
    upon written request submitted by the claimant or the claimant's duly
    authorized representative and received by the Committee within sixty (60)
    days after the claimant receives written notification that the claimant's
    claim has been denied. In connection with such review, the claimant or the
    claimant's duly authorized representative shall be entitled to review
    pertinent documents and submit the claimant's views as to the issues, in
    writing.  The Committee shall act to deny or accept the claim within sixty
    (60) days after receipt of the claimant's written request for review unless
    special circumstances require the extension of such 60-day period.  If such
    extension is necessary, the Committee shall provide the claimant with
    written notification of such extension before the expiration of such initial
    60-day period.  In all events, the Committee shall act to deny or accept the
    claim within 120 days of the receipt of the claimant's written request for
    review.  The action of the Committee shall be in the form of a written
    notice to the claimant and its contents shall include all of the
    requirements for action on the original claim.

                                      10
<PAGE>

(e) In no event may a claimant commence legal action for benefits the claimant
    believes are due the claimant until the claimant has exhausted all of the
    remedies and procedures afforded the claimant by this Article VII.

                                      11
<PAGE>

                                 Article VIII
                           Amendment and Termination

Section 8.01  Amendment of the Plan.
              ---------------------

The Bank may from time to time and at any time amend the Plan; provided,
however, that such amendment may not adversely affect the rights of any
Participant or beneficiary with respect to any benefit under the Plan to which
the Participant or beneficiary may have previously become entitled prior to the
effective date of such amendment without the consent of the Participant or
beneficiary. The Committee shall be authorized to make minor or administrative
changes to the Plan, as well as amendments required by applicable federal or
state law (or authorized or made desirable by such statutes); provided, however,
that such amendments must subsequently be ratified by the Board of Directors.

Section 8.02  Termination of the Plan.
              -----------------------

The Bank may at any time terminate the Plan; provided, however, that such
termination may not adversely affect the rights of any Participant or
beneficiary with respect to any benefit under the Plan to which the Participant
or beneficiary may have previously become entitled prior to the effective date
of such termination without the consent of the Participant or beneficiary.  Any
amounts credited to the supplemental accounts of any Participant shall remain
subject to the provisions of the Plan and no distribution of benefits shall be
accelerated because of termination of the Plan.

                                      12
<PAGE>

                                   Article IX
                               General Provisions

Section 9.01  Unfunded, Unsecured Promise to Make Payments in the Future.
              ----------------------------------------------------------

The right of a Participant or any beneficiary to receive a distribution under
this Plan shall be an unsecured claim against the general assets of the Bank or
its Affiliates and neither a Participant nor his designated beneficiary or
beneficiaries shall have any rights in or against any amount credited to any
account under this Plan or any other assets of the Bank or an Affiliate.  The
Plan at all times shall be considered entirely unfunded both for tax purposes
and for purposes of Title I of ERISA. Any funds invested hereunder shall
continue for all purposes to be part of the general assets of the Bank or an
Affiliate and available to its general creditors in the event of bankruptcy or
insolvency. Accounts under this Plan and any benefits which may be payable
pursuant to this Plan are not subject in any manner to anticipation, sale,
alienation, transfer, assignment, pledge, encumbrance, attachment, or
garnishment by creditors of a Participant or a Participant's beneficiary.  The
Plan constitute a mere promise by the Bank or Affiliate to make benefit payments
in the future.  No interest or right to receive a benefit may be taken, either
voluntarily or involuntarily, for the satisfaction of the debts of, or other
obligations or claims against, such Participant or beneficiary, including claims
for alimony, support, separate maintenance and claims in bankruptcy proceedings.

Section 9.02  Committee as Plan Administrator.
              -------------------------------

(a) The Plan shall be administered by the Committee designated by the Board of
    Directors.

(b) The Committee shall have the authority, duty and power to interpret and
    construe the provisions of the Plan as it deems appropriate.  The Committee
    shall have the duty and responsibility of maintaining records, making the
    requisite calculations and disbursing the payments hereunder.  In addition,
    the Committee shall have the authority and power to delegate any of its
    administrative duties to employees of the Bank or Affiliate, as they may
    deem appropriate.  The Committee shall be entitled to rely on all tables,
    valuations, certificates, opinions, data and reports furnished by any
    actuary, accountant, controller, counsel or other person employed or
    retained by the Bank with respect to the Plan. The interpretations,
    determination, regulations and calculations of the Committee shall be final
    and binding on all persons and parties concerned.

Section 9.03  Expenses.
              --------

Expenses of administration of the Plan shall be paid by the Bank or an
Affiliate.

Section 9.04  Statements.
              ----------

The Committee shall furnish individual annual statements of accrued benefits to
each Participant, or current beneficiary, in such form as determined by the
Committee or as required by law.

                                      13
<PAGE>

Section 9.05  Rights of Participants and Beneficiaries.
              ----------------------------------------

(a) The sole rights of a Participant or beneficiary under this Plan shall be to
    have this Plan administered according to its provisions, to receive whatever
    benefits he or she may be entitled to hereunder.

(b) Nothing in the Plan shall be interpreted as a guaranty that any funds in any
    trust which may be established in connection with the Plan or assets of the
    Bank or an Affiliate will be sufficient to pay any benefit hereunder.

(c) The adoption and maintenance of this Plan shall not be construed as creating
    any contract of employment or service between the Bank or an Affiliate and
    any Participant or other individual.  The Plan shall not affect the right of
    the Bank or an Affiliate to deal with any Participants in employment or
    service respects, including their hiring, discharge, compensation, and
    conditions of employment or other service.

Section 9.06  Incompetent Individuals.
              -----------------------

The Committee may from time to time establish rules and procedures which it
determines to be necessary for the proper administration of the Plan and the
benefits payable to a Participant or beneficiary in the event that such
Participant or beneficiary is declared incompetent and a conservator or other
person legally charged with that Participant's or beneficiary's care is
appointed. Except as otherwise provided herein, when the Committee determines
that such Participant or beneficiary is unable to manage his or her financial
affairs, the Committee may pay such Participant's or beneficiary's benefits to
such conservator, person legally charged with such Participant's or
beneficiary's care, or institution then contributing toward or providing for the
care and maintenance of such Participant or beneficiary.  Any such payment shall
constitute a complete discharge of any liability of the Bank or an Affiliate and
the Plan for such Participant or beneficiary.

Section 9.07  Sale, Merger, or Consolidation of the Bank.
              ------------------------------------------

The Plan may be continued after a sale of assets of the Bank, or a merger or
consolidation of the Bank into or with another corporation or entity only if and
to the extent that the transferee, purchaser or successor entity agrees to
continue the Plan.  Additionally, upon a merger, consolidation or other change
in control any amounts credited to Participant's deferral accounts shall be
placed in a grantor trust to the extent not already in such a trust.  In the
event that the Plan is not continued by the transferee, purchaser or successor
entity, then the Plan shall be terminated subject to the provisions of Section
8.02 of the Plan.  Any legal fees incurred by a Participant in determining
benefits to which such Participant is entitled under the Plan following a sale,
merger, or consolidation of the Bank or an Affiliate of which the Participant is
an Employee or, if applicable, a member of the Board of Directors, shall be paid
by the resulting or succeeding entity.

                                      14
<PAGE>

Section 9.08  Location of Participants.
              ------------------------

Each Participant shall keep the Bank informed of his or her current address and
the current address of his or her designated beneficiary or beneficiaries.  The
Bank shall not be obligated to search for any person.  If such person is not
located within three (3) years after the date on which payment of the
Participant's benefits payable under this Plan may first be made, payment may be
made as though the Participant or his or her beneficiary had died at the end of
such three-year period.

Section 9.09  Liability of the Bank and its Affiliates.
              ----------------------------------------

Notwithstanding any provision herein to the contrary, neither the Bank nor any
individual acting as an employee or agent of the Bank shall be liable to any
Participant, former Participant, beneficiary, or any other person for any claim,
loss, liability or expense incurred in connection with the Plan, unless
attributable to fraud or willful misconduct on the part of the Bank or any such
employee or agent of the Bank.

Section 9.10  Governing Law.
              -------------

All questions pertaining to the construction, validity and effect of the Plan
shall be determined in accordance with the laws of the United States and to the
extent not preempted by such laws, by the laws of the Commonwealth of
Massachusetts.



Having been adopted by its Board of Directors on the ______________ 2000, this
Plan is executed by its duly authorized officer this ___ day of________________,
2000.


                                    BERKSHIRE BANK
Attest:


________________________            By:______________________________


                                      15