EXHIBIT 10.5


July 15,1998

Mr. David Glidden
48 Holy Family Road
Holyoke, MA 01040

Dear David:

SIS Bancorp,  Inc.  ("Bancorp") and Springfield  Institution for Savings ("SIS")
are exploring various  alternatives with respect to Bancorp and SIS, including a
merger or other  combination  with a third  party.  This  letter  sets forth the
understanding  and agreement  between you and SIS with respect to our respective
rights  and  obligations  in  connection  with  your  continued  employment  and
cooperation in a potential reorganization involving SIS (a "Reorganization").

     1. You agree to assist  and  cooperate  fully with  Bancorp  and SIS in all
matters  related to its efforts to consummate a  Reorganization  and perform all
tasks  reasonably  requested  of you to  support  and help  bring  about  such a
Reorganization.  Furthermore,  in  recognition  of  SIS's  desire  that you make
yourself available for employment with SIS or any successor entity following the
completion of a  Reorganization  should it desire to retain your  services,  you
agree to review and  consider in good faith  employment  offers  (including  the
continuation  of your present terms of  employment).  if any, made by SIS or any
such successor entity following a Reorganization.

     2. (a) In connection with the possible Reorganization, SIS will provide you
with  severance  consisting  of twelve (12) months of your current  monthly base
salary plus medical, dental and other nonretirement benefits if:

                    (i)  you  are  terminated  without  cause  as set  forth  in
               paragraph  6 prior to the closing of such a  Reorganization  (the
               "Closing");

                    (ii) you do not receive an offer of  employment  from SIS or
               any  successor  entity  at or  about  the  time of  Closing  that
               includes a base salary at least equal to the base salary received
               from SIS as of the time of the  Closing,  and that  provides  you
               with  benefits  reasonably  comparable  in the  aggregate to your
               current benefits ("Comparable Compensation");

                    (iii) you receive  but do not accept an offer of  employment
               from SIS or any such successor entity at Comparable  Compensation
               because  the  location  of the  employment  offered  entailed  an
               additional commute from your current residence of more than forty
               (40) miles; or

                    (iv) you accept a position  with SIS or a  successor  entity
               and are  subsequently  terminated  without  cause as  defined  in
               paragraph 7 at any time after the Closing,  or you are  subjected
               to a  reduction  of your  base  salary,  or you are  required  to
               relocate to a new


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Mr. David Glidden
July 15, 1998
Page 2
                  employment  location  that will entail an  additional  commute
                  from your current residence of more than forty (40) miles.

          (b) Severance shall be paid in a lump sum in the first month after the
          occurrence  of an event  specified  in  subparagraph  (a)  above  that
          entitles you to severance payments.

3. You and your  eligible  dependents  shall be eligible  during the twelve (12)
months  following  your  becoming  entitled to severance  payments  hereunder to
participate in medical,  dental and other  nonretirement  plans with no required
contribution from you other than  contributions  currently  required from active
employees covered by such plans.

4. Prior to a public announcement concerning any Reorganization,  you agree that
without the prior  consent of SIS you will not  disclose to any person or entity
(other  than those  individuals  identified  to you in  writing as being  active
participants in the Reorganization  process) either the fact that discussions or
negotiations  are taking place or have taken place regarding the  Reorganization
or any of  the  terms,  conditions  or  other  facts  relating  to the  possible
Reorganization, including the status thereof.

5. Nothing  contained  herein shall obligate SIS or any other party to offer you
continued employment or to provide you with any minimum level of compensation or
benefits.

6. SIS retains the right to  terminate  your  employment  prior to the  Closing.
Unless  terminated for reasons set forth in subparagraphs  (a), (b) or (c) below
prior to Closing, including any termination as a result of a reduction in force,
you shall receive the severance benefits referenced in paragraph 2. In the event
of termination for cause as defined in subparagraphs (a), (b) and (c) below, you
shall not be entitled to the  benefits  referenced  in  paragraph 2. Reasons for
termination for cause are:

     (a)  failure  to  perform  any of the  material  duties  of your  position,
including special projects and assignments; or

     (b)  breach  of any  material  provision  of SIS's  standards  of  business
behavior and ethics; or

     (c)  serious misconduct in willful disregard of the interests of SIS.

7. The following conduct shall constitute "cause" for termination after Closing:

     (a)  repeated  failure  to  perform  any of the  material  duties  of  your
position,  including  special  projects  and  assignments,  provided  reasonable
written  notice and an  opportunity to cure  performance  deficiencies  has been
provided;
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Mr. David Glidden
July 15,1998
Page 3


     (b) breach of any  material  provision of SIS's or any  successor  entity's
standards of business behavior and ethics; or

     (c)  serious  misconduct  in willful  disregard  of SIS's or any  successor
entity's interests.

8. Entire  Agreement.  This letter  constitutes the entire agreement between the
parties and supersedes any prior  communications,  agreements or understandings,
whether oral or written, with respect to the terms of your continued employment.

9. Arbitration of Claims. The parties agree that any disputes arising during the
term of your  employment  with SIS,  including  but not  limited  to any  claims
arising under the terms of this agreement, shall be subject to final and binding
arbitration as the sole and exclusive forum for dispute resolution.  Arbitration
under this  section  shall be  conducted  pursuant to the rules of the  American
Arbitration  Association  applicable  to employment  disputes.  Either party may
request arbitration in writing pursuant to this section within six (6) months of
the event(s) giving rise to the dispute.  Failure to request  arbitration within
the  time  period  shall   forever  bar  any  action  in  court  or  before  any
administrative  agency and shall be construed as an explicit  waiver and release
of all claims as enumerated herein.  Claims covered by this section include, but
are not limited to,  claims for breach of  contract,  breach of the  covenant of
good faith and fair  dealing,  tort  claims,  claims  arising  under common law,
claims for  discrimination  and claims for  compensation  or benefits  under the
terms of this agreement.  Any arbitration  award issued under this section shall
extinguish all other rights of the parties with respect to the subject matter of
the dispute, whether grounded in contract,  federal or state statutes, or common
law, and otherwise will be final and binding on the parties.  Claims not covered
by this section are claims  regarding your  compensation  other than pursuant to
this agreement,  including but not limited to modification in compensation,  the
amount and award of discretionary company bonuses and stock options, eligibility
for benefits under any company  benefit plan covered by the Employee  Retirement
Income  Security  Act of 1974,  as amended  ("ERISA"),  the  amount of  benefits
provided  under a company  benefit plan covered by ERISA,  any claim  cognizable
under  ERISA,   or  any  claims  for  workers'   compensation   or  unemployment
compensation  under a state workers'  compensation or unemployment  compensation
law.

10.  Confidentiality.  You agree to keep  confidential this agreement and not to
disclose  either the fact of the  agreement  or the terms  thereof  except where
necessary to members of your immediate  family,  tax or legal  advisors,  and as
required in response to a valid subpoena or court order.  Failure to comply with
the  provisions  of this  paragraph  10 will be deemed a material  breach of the
agreement  and may result in  forfeiture  of the payments and benefits  provided
herein.

11. Amendment and Termination. SIS reserves the right to amend or terminate this
agreement at any time,  provided that no such  amendment or  termination  may be
made after the Closing without your consent.




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Mr. David Glidden
July 15,1998
Page 4

         If you are in  agreement  with the  foregoing,  please  sign,  date and
return the enclosed copy of this letter to the  undersigned,  whereupon it shall
become a binding agreement between us.

                                Very truly yours,

                                SPRINGFIELD INSTITUTION FOR SAVINGS

                                By: /s/ F. William Marshall, Jr.
                                   (Signature)

  AGREED AND ACCEPTED:
  /s/ David Glidden             Date:  7/17/98
Name: David  Glidden