Document:

<PAGE>

                                                                    EXHIBIT 10.1

                         [ESOP SUBSIDIARY LETTERHEAD]

                              ________ ____, 200_

James A. Cunningham, Jr.
President and Chief Executive Officer
Berkshire Bank
24 North Street
Pittsfield, Massachusetts 01201

Dear Mr. Cunningham:

     This letter confirms [ESOP Subsidiary]'s commitment to fund a leveraged
ESOP in an amount up to $________.  The commitment is subject to the following
terms and conditions:

     1.   Lender:  _________________ (the "Company").
          ------

     2.   Borrower:  Berkshire Bank Employee Stock Ownership Plan.
          --------

     3.   Trustee:  ______________________________.
          -------

     4.   Security:  Unallocated shares of stock of the Company held in the
          --------
          Berkshire Bank Employee Stock Ownership Plan.

     5.   Maturity:  Up to _____ years from takedown.
          --------

     6.   Amortization:  Equal payments of principal and interest on quarterly,
          ------------
          semi-annual or annual basis; specific amount to be set prior to
          takedown upon determination of total loan disbursements.

     7.   Pricing:
          -------

          a.   [the Prime Rate as published in the Wall Street Journal on the
               date of the loan transaction].

     8.   Interest Payments:
          -----------------

          a.   Quarterly, semi-annual or annual 360 or 365 day basis.
<PAGE>

Mr. James A. Cunningham, Jr.
_______________, 200_
Page 2

     9.   Funding: In full by _______________, unless such date is waived by the
          -------
          Company.

     10.  Prepayment: Voluntary prepayments are permitted at any time.
          ----------

     11.  Conditions Precedent to Closing: Receipt by the Company of all
          -------------------------------
          supporting loan documents in a form and with terms and conditions
          satisfactory to the Company and its counsel. Consummation of the
          transaction will also be contingent upon no material adverse change
          occurring in the condition of Woronoco Savings Bank or the Company.

     12.  Closing Date: Not later than _____________, unless such date is waived
          ------------
          by the Company.

     If the terms and conditions are agreeable to you, please indicate your
acceptance by signing the enclosed copy and returning it to my attention.

                                    Sincerely,

Accepted on Behalf of
Berkshire Bank

By:  ________________________________________      Date:  _____________________
     James A. Cunningham, Jr.
     President and Chief Executive Officer
<PAGE>

                                    FORM OF
                                BERKSHIRE BANK
                        EMPLOYEE STOCK OWNERSHIP TRUST
                          LOAN AND SECURITY AGREEMENT

[ESOP Subsidiary]
24 North Street
Pittsfield, Massachusetts 01201

___________, 2000

Gentlemen:

     The undersigned, ___________________ ("Trustee"), not individually but
solely as Trustee under the Berkshire Bank Employee Stock Ownership Plan Trust
(the "Trust") effective _________________, 2000 (the "Borrower"), applies to you
for your commitment, subject to all of the terms and conditions hereof and on
the basis of the representations hereinafter set forth, to make a loan available
to the Borrower as hereinafter set forth. [ESOP Subsidiary] is hereinafter
referred to as the "Lender". The term "Bank" as used herein refers to the
sponsoring employer of the Berkshire Bank Employee Stock Ownership Plan (the
"ESOP").

SECTION ONE.  THE TERM LOAN.

     1.1  Amount and Terms.  Subject to and upon the terms and conditions herein
          ----------------
set forth, the Lender agrees to lend amounts to the Borrower (the "Loan") from
time to time during the period of this agreement up to but not including the
maturity date of in an aggregate principal amount (the "Loan Amount") sufficient
to permit the Borrower to acquire a number of shares ("Shares") of common stock,
par value $0.01 ("Common Stock") of Berkshire Hills Bancorp, Inc., a Delaware
corporation, and the Holding Company of the Bank, equal to 8% of the Shares
issued in connection with the conversion of the Bank from the mutual to stock
form (the "Conversion") including the shares issued to ________________
Charitable Foundation, a charitable foundation being established in connection
with the Conversion.

     The Loan is intended to be an "exempt loan" as described in Section 4975(d)
of the Internal Revenue Code of 1986, as amended (the "Code"), as defined in
Section 54.4975-7(b) of the Treasury Regulations (the "Regulations"), as
described in Section 408(b)(3) of the Employee Retirement Income Security Act of
1974, as amended ("ERISA") and as described in Department of Labor Regulations
Section 2550.408b-3 (collectively, the "Exempt Loan Rules").
<PAGE>

     1.2  The Note.  The disbursement of the Loan pursuant to Section 1.1 hereof
          --------
shall be made against and evidenced by a promissory note of the Borrower in the
form annexed hereto as Exhibit A (the "Note"), such Note to bear interest as
hereinafter provided, and to mature in _____ (___) equal annual installments
consisting of both principal and interest amortized over a _________ (___) year
period in an amount sufficient to repay all borrowed amounts plus interest,
commencing on ______________, 200___, and on the last day of each and every
______________ each year thereafter, except that the final installment not
sooner paid shall be due on _______________, 20___ the final maturity thereof.

     Without regard to the principal amount of the Note stated on its face, the
actual principal amount at any time outstanding and owed by the Borrower on
account of the Note shall be the amount of the disbursement of the Loan made by
the Lender under Section 1.1 hereof less all payments of principal actually
received by the Lender. The amount of such disbursement made by the Lender and
any repayments of principal thereof shall be recorded by the Lender on its books
or records or, at its option, endorsed on the reverse side of the Note by the
Lender and the unpaid principal balance at any time so recorded or endorsed by
the Lender shall be prima facie evidence in any court or other proceedings
brought to enforce the Note of the principal amount remaining unpaid thereon.

     1.3  Exempt Loan Rules. Notwithstanding anything to the contrary contained
          ------------------
in this Loan and Security Agreement (the "Agreement") or in the Note, the
Borrower shall be obligated to make repayments of the Loan only to the extent
that such repayments when added to the repayments theretofore made during the
applicable plan year would not exceed an amount which would cause the
limitations of Section 415 of the Code to be exceeded for any ESOP participant.

     Except as set forth in the next succeeding sentence and to the extent
permitted by applicable law, including, without limitation, the Exempt Loan
Rules, the principal amount of the Loan and any interest thereon shall be
payable solely from contributions (other than contributions of employer
securities) made to the Trust in accordance with the ESOP, and cash dividends
received on the Shares, to enable the Borrower to pay its obligations under the
Loan and from earnings attributable to the Shares and the investment of such
contributions and dividends.

     The Lender acknowledges and agrees that it shall have no other recourse
against the Borrower for repayment of the Loan and that it shall have no
recourse against assets of the ESOP included in the Trust other than pursuant to
Sections 3 and 8 hereof.

SECTION TWO.  INTEREST AND FEES.

     2.1  Interest Rate.  The Loan shall bear interest (which the Borrower
          -------------
hereby promises to pay) prior to maturity (whether by lapse of time,
acceleration or otherwise) at a rate per annum equal at all times to the
"Interest Rate" defined for purposes of this Agreement to mean the lowest prime
rate reported in The Wall Street Journal on the date of the Conversion.

                                       2
<PAGE>

     2.2  Basis and Payment Dates.  All interest due on the Note prior to
          -----------------------
maturity shall be due and payable on an annual basis on the last day of each
year (commencing ____________, 200___) and at maturity (unless prepaid in whole
prior to such date, then on the date of such prepayment in whole) and interest
due after maturity shall be due and payable upon demand. All interest on the
Note shall be computed on an annual basis.

SECTION THREE.  COLLATERAL.

     3.1  Grant of Security Interest-Pledged Shares.  The Borrower hereby
          -----------------------------------------
grants, pledges and assigns to the Lender all Shares of the issued and
outstanding common stock, par value $.01 per share all of which were either (i)
purchased by the Borrower from the proceeds of the disbursement of the Loan;
(ii) acquired by the Borrower with the proceeds of a prior exempt loan within
the meaning of Section 54.4975-7(b) of the Regulations, and pledged as
collateral for such prior exempt loan, where the balance of such prior exempt
loan has been repaid with the proceeds of the disbursement of the Loan (the
"Pledged Shares" being hereinafter referred to as the "Collateral"). The Pledged
Shares shall be evidenced by a stock certificate. The assignment and pledge
herein granted and provided for is made and given to secure and shall secure the
prompt payment of principal of and interest on the Note as and when the same
becomes due and payable and the payment, observance and performance of any and
all obligations and liabilities arising under or provided for in this Agreement
or the Note or any of them in each instance as the same may be amended or
modified and whether now existing or hereafter arising.

     3.2  Further Assurances.  The Borrower covenants and agrees that it will at
          ------------------
any time and from time to time as requested by the Lender execute and deliver
such further instruments and perform such other acts as the Lender may
reasonably deem necessary or desirable to provide for or perfect the lien of the
Lender in the Collateral hereunder.

     3.3  Voting.  Upon the occurrence of a Default as defined in Section 9
          ------
hereunder, the Lender shall have the right to transfer the Collateral or any
part thereof into its name or into the name of its nominee. The Lender shall not
be entitled to vote the Pledged Shares unless and until a Default has occurred
and so long as the same shall not have been waived by the Lender.

     3.4  Partial Releases.  The Lender shall, provided always that no Default
          ----------------
shall have occurred and be continuing, as promptly as is practicable after
__________ in each year (the period commencing on the date hereof and ending
_________________ in each subsequent 12-month period ending on ______________
being hereinafter referred to as a "Plan Year"), to release that number of
Pledged Shares then being held to secure the Loan which is equal to the number
of such Pledged Shares held as of the last day of the Plan Year multiplied by a
fraction, the numerator of which is the aggregate amount of all principal and
interest payments made on the Note during the Plan Year and the denominator of
which is the sum of the numerator plus the unpaid principal and interest of the
Note as of the last day of such Plan Year.

                                       3
<PAGE>

SECTION FOUR.  PAYMENTS.

     4.1  Place and Application.  All payments of principal, interest, fees and
          ---------------------
all other amounts payable hereunder shall be made to the Lender at 24 North
Street, Pittsfield, Massachusetts 01201 for the account of the Lender (or at
such other place for the account of the Lender as the Lender may from time to
time in writing specify to the Borrower) in immediately available and freely
transferable funds at the place of payment. All payments shall be paid in full
without setoff or counterclaim and without reduction for and free from any and
all taxes, levies, duties, fees, charges, deductions, withholdings, restrictions
or conditions of any nature imposed by any government or any political
subdivision or taxing authority thereof.

     4.2  Prepayments. The Borrower shall have the privilege of prepaying in
          -----------
whole or in part the Note at any time upon giving three (3) Business Days' prior
notice to the Lender, each such prepayment to be made by the payment of the
principal amount to be prepaid and accrued interest thereon to the date fixed
for prepayment. The term "Business Day" shall mean any day on which savings
institutions are generally open for business in Massachusetts, other than
Saturday and Sunday. All such prepayments shall be made without premium or
penalty. Prepayments shall first be applied to the several installments of the
Note in the inverse order of their respective maturities.

SECTION FIVE.  REPRESENTATIONS AND WARRANTIES.

     The Borrower represents and warrants to the Lender as follows:

     5.1  The Trust is a duly organized, validly existing employee stock
ownership trust.

     5.2  The proceeds of the disbursement of the Loan shall be applied in their
entirety to the payment of the purchase price for the Pledged Shares.

     5.3  The Borrower has full right, power and authority to enter into this
Agreement, to make the borrowings hereunder provided for, to issue the Note in
evidence thereof and to perform each and all of the matters and things herein
and therein provided for and this Agreement does not, and the Note when issued
will not, nor will the performance or observance by the Borrower of any of the
matters or things herein or therein provided, contravene any provision of law or
the Trust or any other covenant or agreement affecting the Trust or any of its
assets. As of the date of the disbursement of the Loan, the Pledged Shares will
be fully paid and non-assessable and the Pledged Shares will be owned by the
Borrower free and clear of all liens, charges and encumbrances whatsoever,
except for any lien of Lender provided for herein.

     5.4  Except as disclosed to the Lender in writing, there is no litigation
or governmental proceeding pending, nor to the knowledge of the Borrower
threatened, against the ESOP and Trust.

                                       4
<PAGE>

     5.5  The ESOP and Trust have no material liabilities, whether absolute or
contingent, except for those heretofore disclosed to the Lender.

SECTION SIX.  REPRESENTATIONS AND WARRANTIES OF THE LENDER

     The Lender represents and warrants that:

     6.1  The Lender is a corporation duly organized under the laws of the
Commonwealth of Massachusetts, and is validly existing and in good standing
under the laws of the Commonwealth of Massachusetts. The Lender has full power
and authority and legal right to make and perform this Agreement.

     6.2  The execution, delivery and performance by the Lender of this
Agreement have been duly authorized by all necessary action by the Lender and is
not and will not violate any provisions of law applicable to the Lender, any
rules, regulations or orders applicable to the Lender or any judgments or
decrees binding upon the Lender. This Agreement is a valid and legally binding
obligation of the Lender enforceable against the Lender in accordance with its
terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and similar laws affecting credits' rights generally
and the general principles of equity (regardless of whether considered in a
proceeding at law or in equity).

     6.3  No authorizations, approvals or consents of, and no filings or
registrations with, any governmental regulatory authority or agency are required
for the execution, delivery or performance by the Lender of this Agreement, or
any transaction contemplated hereby, or for the validity or enforceability
against the Lender hereof except as have already been received or accomplished.

     6.4  The execution, delivery and performance of the Agreement and the
consummation of the transactions contemplated hereby will not violate, conflict
with or constitute a default under (i) any of the provisions of the Lender's
Certificate of Incorporation or Bylaws, (ii) any provision of any agreement,
instrument, order, arbitration award, judgment or decree to which the Lender is
a party or by which it is or its assets are bound, and (iii) any statute, rule
or regulation of any federal, state or local government or agency applicable to
the Lender, except in any such case (i), (ii), (iii) above, for any such
conflicts, violations, defaults which either individually or in the aggregate do
not have a material adverse effect on the business properties of the Lender and
its subsidiaries, taken as a whole.

     6.5  To its best knowledge, the Bank has taken such actions as are required
by applicable law to be taken to establish the ESOP and the Trust.

     6.6  To its best knowledge, there is no action, suit, investigation or
proceeding pending, or threatened against or affecting the ESOP before any court
or governmental department, agency or instrumentality.

                                       5
<PAGE>

     6.7  The Loan will be an "exempt loan" as that term is defined under
Section 54.4975-7(b)(1)(iii) of the Regulations, provided the ESOP Committee
determines that the interest rate is not more than reasonable; and the
transactions contemplated by this Agreement are "prohibited transactions" within
the meaning of Section 4975 of the Code or Section 406(a) of ERISA, and are
subject to exemption pursuant to Section 4975(d)(3) of the Code and Section 408
of ERISA.

     6.8  Except as otherwise provided in this Agreement, the Shares are not
subject to any restriction on transfer under applicable Federal securities law
and may be freely traded on [Stock Exchange].

     6.9  Determination Letter. The Bank shall apply for a determination letter
from the Internal Revenue Service that the Plan and the Trust, taken together,
qualify as an employee stock ownership plan for purposes of Section 4975(e)(7)
of the Code and the rules and regulations thereunder.

SECTION SEVEN. CONDITIONS PRECEDENT.

     The obligation of the Lender to make the Loan shall be subject to
satisfaction of the following conditions precedent:

     7.1  The Lender shall have received executed originals of this Agreement
and the Note duly signed and properly completed.

     7.2  The Lender shall have received either (i) the certificate evidencing
all the Pledged Shares together with duly executed blank stock power therefore
or (ii) if such Pledged Shares are not yet available, a duly executed agreement
to pledge such stock in the form attached hereto as Exhibit B (in which event
such certificate and stock power will be delivered within six (6) days of the
date of the Lender makes the Loan).

     7.3  The Lender shall have received copies (executed or certified, as may
be appropriate) of all legal documents or proceedings taken in connection with
the execution and delivery of this Agreement and the Note.

SECTION EIGHT. COVENANTS.

     Borrower covenants and agrees that so long as any amount remains unpaid on
the Note or the Commitment is outstanding, except to the extent compliance in
any case or cases is waived in writing by the Lender:

     8.1  Compliance.  The Borrower will comply with all requirements of the
          ----------
Code, ERISA and any other law, rule or regulation applicable to it as such laws,
rules or regulations affect the ESOP or the Trust.

                                       6
<PAGE>

     8.2  Reports.
          -------

          (a)  The Borrower will maintain a system of accounting for the ESOP
     and the Trust in accordance with sound accounting practice and will, from
     time to time, furnish to the Lender and its duly authorized
     representatives, such information and data with respect to the financial
     condition of the ESOP and the Trust as the Lender may reasonably request.

          (b)  Without any request the Borrower will furnish to the Lender
     promptly after knowledge thereof shall have come to the attention of the
     Borrower, written notice of the occurrence of any Default hereunder or of
     any threatened or pending litigation or governmental proceeding against the
     Plan or the Trust.

SECTION NINE. DEFAULT AND REMEDIES.

     9.1  Default.  Any one or more of the following shall constitute a Default
          --------
hereunder:

          (a)  As of the date when due, the Borrower fails to make payment of
     principal and/or interest with respect to the Note or any other amounts
     payable under this Agreement within five (5) business days of the date when
     due;

          (b)  As of the date proven false, the Borrower makes any
     representation, warranty or statement herein or in connection with the
     making of the Loan which proves to be incorrect in any material respect;

          (c)  As of the date the Borrower fails to perform or observe any term,
     covenant or agreement (other than those referred to in subparts (a) and
     (b), inclusive, of this Section 9.1) contained in this Agreement and such
     failure continues unremedied for a period of 30 days after notice to the
     Borrower by the Lender or any other holder of the Note;

          (d)  As of the date of termination of the ESOP if such termination is
     prior to the expiration of the term of this Agreement.

     9.2  Limitations on Use of Trust Assets.  When any Default described in
          -----------------------------------
subsections (a) to (c), of Section 9.1 has occurred and is continuing, the
Lender or the holder of the Note shall have no rights to assets of the Trust
other than (i) contributions (other than contributions of employer securities)
that are made by the Lender to enable the Borrower to meet its obligations
pursuant to the Loan, cash dividends received by the Borrower on the Shares and
earnings attributable to the investment of such contributions and dividends and
(ii) the Pledged Stock; provided further, however, that the value of Trust
assets transferred to the Lender as a result of an Event of Default shall not
exceed the amount of the repayment then in default, and, provided further, that
so long as the Lender is a "party in interest" within the meaning of ERISA
Section

                                       7
<PAGE>

3(14) or a "disqualified person" within the meaning of Section 4975(e)(2) of the
Code, a transfer of Trust assets upon default shall be made only if, and to the
extent of, the Borrower's failure to meet the loan's payment schedule.

     9.3  Rights Upon a Default.  When any Default has occurred and is
          ----------------------
continuing the Lender may, in addition to such other rights or remedies as it
may have, then or at any time or times thereafter exercise with respect to the
Collateral any and all of the rights, options and remedies of a secured party
under the Uniform Commercial Code of Massachusetts (the "UCC") including without
limitation the sale of all or any part of the Collateral at any brokers' board
or any public or private sale, provided, however that the Lender shall only be
able to exercise such rights and remedies to the extent of all interest and
principal payments which are due and payable as of the date of the Default and
provided further that prior to such exercise the Lender shall release from the
Collateral so much thereof as it would have been required to release under
Section 3.4 hereof if the period from the previous __________________ to the
date of such release constituted a Plan Year and no Default had occurred. The
net proceeds of any such sale, after deducting all costs and expenses incurred
in the collection, protection, sale and delivery of the Collateral (which
expenses Borrower promises to pay) shall be applied first to the payment of any
costs and expenses incurred by the Lender in selling or otherwise disposing of
the Collateral, second, to the payment of the principal of and the interest on
the Note, and, third, ratably as among any other items of the indebtedness
hereby secured. Any surplus remaining after the full payment and satisfaction of
the foregoing shall be returned to the Borrower or to whomsoever a court of
competent jurisdiction shall determine to be entitled thereto. Any requirement
of said UCC as to reasonable notice shall be met by the Lender personally
delivering or mailing notice (by certified mail - return receipt requested) to
the Borrower at its address as provided in Section 10.6 hereof at least ten (10)
days prior to the event giving rise to the requirement of such notice. In
connection with any offer, solicitation or sale of the Collateral, the Lender
may restrict bidders and otherwise proceed in whatever manner it reasonably
believes appropriate in order to comply or assure compliance with applicable
legal requirements pertaining to the offer and sale of securities of the same
type as the Collateral.

     9.4  ERISA Restrictions.  The number of shares of Pledged Stock as to which
          -------------------
the Lender may exercise the rights set forth in this Section 9 may not exceed
that number of shares (then remaining subject to pledge hereunder) which is then
equal in current value to the amount in default under the Note. The remedies set
forth in this Section 9 may only be exercised to the extent consistent with the
restrictions on remedies set forth in Section 408(b)(3) of ERISA and the
regulations thereunder and Section 4975(d)(3) of the Code and the regulations
thereunder.

SECTION TEN. MISCELLANEOUS.

     10.1 Holidays.  If any principal of the Note shall fall due on Saturday,
          --------
Sunday or on another day which is a legal holiday for savings institutions in
the Commonwealth of Massachusetts interest at the rate the Note bears for the
period prior to maturity shall continue to

                                       8
<PAGE>

accrue on such principal from the stated due date thereof to and including the
next succeeding Business Day on which the same is payable.

     10.2  No Waiver, Cumulative Remedies.  No delay or failure on the part of
           ------------------------------
the Lender or the part of the holder of the Note in the exercise of any power or
right shall preclude any other or further exercise thereof, or the exercise of
any other power or right, and the rights and remedies hereunder of the Lender
and of any holder of the Note are cumulative to, and not exclusive of, any
rights or remedies which any of them would otherwise have.

     10.3  Amendments, Etc.  No amendment, modification, termination or waiver
           ----------------
of any provision of this Agreement or of the Note nor consent to any departure
by the Borrower therefrom, shall in any event be effective unless the same shall
be in writing and signed by the Lender, and then such consent, modification or
waiver shall be effective only in the specific instance and for the specific
purpose for which given. No notice to or demand on the Borrower in any case
shall entitle the Borrower to any other further notice or demand in similar or
other circumstances.

     10.4. Survival of Representations.  All representations and warranties
           ---------------------------
made herein or in certificates given in connection with the Loan shall survive
the execution and delivery of this Agreement and of the Note, and shall continue
in full force and effect with respect to the date as of which they were made as
long as any credit is in use or available hereunder.

     10.5  Payments.  So long as the Lender is the holder of the Note, the
           --------
Borrower will promptly and punctually pay the principal of and interest on the
Note without presentment of the Note and without any notation of any such
payment being made on the Note.

     10.6  Addresses for Notices.  All communications provided for herein shall
           ---------------------
be in writing and shall be deemed to have been given or made when served
personally or when deposited in the United States mail addressed, if to the
Borrower at _________________________________, Attention: __________ ,
____________, _____________, ______________; if to the Lender at 24 North
Street, Pittsfield, Massachusetts 01201, and a copy to counsel, Attention:
Thomas P. Hutton, Muldoon, Murphy & Faucette, 5101 Wisconsin Avenue, N.W.,
Washington, D.C. 20016, or at such other address as shall be designated by any
party hereto in a written notice to each other party pursuant to this Section
10.6.

     10.7  Headings.  Article and Section headings used in this Agreement are
           --------
for convenience or reference only and are not a part of this Agreement for any
other purpose.

     10.8  Severability of Provisions.  Any provision of this Agreement which is
           --------------------------
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such unenforceability without impairing the enforceability of
the remaining provisions hereof affecting the enforceability of such provision
in any other jurisdiction.

                                       9
<PAGE>

     10.9  Counterparts.  This Agreement may be executed in any number of
           ------------
counterparts, and by different parties hereto on separate counterparts, and all
such counterparts taken together shall be deemed to constitute one and the same
instrument.

     10.10 Binding Nature, Governing Law, Etc.  This Agreement shall be binding
           -----------------------------------
upon the Borrower and its successors and assigns and shall inure to the benefit
of the Lender and the benefit of its successors and assigns, including any
subsequent holder of the Note. To the extent not preempted by Federal law, this
Agreement and the rights and duties of the parties hereto shall be construed and
determined in accordance with the laws of the Commonwealth of Massachusetts
without regard to principles of conflicts of laws. This Agreement constitutes
the entire understanding of the parties with respect to the subject matter
hereof and any prior agreements, whether written or oral, with respect thereto
are superseded hereby.

     10.11 Concerning the Borrower.  The term "Borrower" as used herein shall
           -----------------------
mean and include the undersigned as Trustee of the Trust and its successors in
trust not individually but solely as Trustee under that certain Berkshire Bank
Employee Stock Ownership Plan Trust effective _______________, 200__, by and
between the undersigned and Berkshire Bank and this Agreement shall be binding
upon the undersigned and its successors and assigns and upon the trust estate.
The undersigned assumes no personal or individual liability or responsibility
for payment of the indebtedness evidenced by the Note or for observance or
performance of the covenants and agreements herein contained or for the
truthfulness of the representations and warranties herein contained, the
undersigned having executed this Agreement and the Note solely in its capacity
as trustee as aforesaid to bind the undersigned, its successors in trust and the
trust estates.

     10.12 Limited Liability.  Anything contained herein or in the Note to the
           -----------------
contrary notwithstanding, the sole and only recourse of the Lender and any other
holder of the Note for payment of the obligations hereunder and under the Note ,
as against the Borrower for the payment of the obligations hereunder and under
the Note shall be to (i) the Collateral, (ii) contributions, other than employer
securities not constituting Collateral hereunder, made to the ESOP and the Trust
by sponsoring employers to enable the Borrower to meet its obligations hereunder
and under the Note, and (iii) earnings attributable to the Pledged Shares and to
the investment of such employer contributions, but only to the extent of the
failure of the Borrower to meet the payment schedule of the Loan provided for
herein. The Trust assets may be transferred to Lender upon the occurrence of a
Default or an Event of Default hereunder only upon and to the extent of the
failure of the Plan to meet the payment schedule of the Loan. In no event may
the value of the Trust assets so transferred exceed the amount of the default.

     10.13 Lender's Duty of Care.  It is agreed and understood that the Lender's
           ---------------------
duty with respect to the Collateral shall be solely to use reasonable care in
the custody and preservation of the Collateral in the Lender's possession, which
shall not include any steps necessary to preserve rights against prior parties.

                                      10
<PAGE>

     All provisions in this Agreement shall be construed so as to maintain (i)
the ESOP as a qualified leveraged employee stock ownership plan under Sections
401(a) and 4975(e)(7) of the Code, (ii) the Trust as exempt from taxation under
Section 501(a) of the Code, and (iii) the Loan as an "exempt loan" under the
Exempt Loan Rules.

               [Remainder of this page intentionally left blank]

                                      11
<PAGE>

     Upon your acceptance hereof in the manner hereinafter set forth, this
Agreement shall constitute a contract between us for the uses and purposes
hereinabove set forth.

     Dated as of this _____ day of ___________________, 2000.

                         [TRUSTEE], and its successors in trust, as Trustee
                         under that certain Berkshire Bank Employee Stock
                         Ownership Trust effective _____________, 200__, by and
                         between the undersigned and Berkshire Bank

                         By________________________________________

     Accepted and agreed to at Pittsfield, Massachusetts as of the date last
above written.

                         By________________________________________
                              James A. Cunningham, Jr.
                              President and Chief Executive Officer

                                      12
<PAGE>

                                   EXHIBIT A

                                PROMISSORY NOTE

Amount sufficient to satisfy the Loan Amount      ________________, 2000
Pittsfield, Massachusetts

     For VALUE RECEIVED, the undersigned, [TRUSTEE] not individually but solely
as Trustee under that certain Berkshire Bank Employee Stock Ownership Plan Trust
effective _________________, 200__, by and between the undersigned ("Borrower")
and Berkshire Bank promises to pay to the order of [ESOP SUBSIDIARY], (the
"Lender") at its office at 24 North Street, Pittsfield, Massachusetts 01201, the
aggregate unpaid principal amount of all loan amounts or advances under the loan
made to the Borrower under Section 1.1 of the Loan and Security Agreement
hereinafter referred to in ______________ (___) consecutive annual equal
installments consisting of both principal and interest amortized over a ______
(____) year period in an amount sufficient to repay all borrowed amounts plus
interest, payable quarterly on the last business day of ______________, 200___
and continuing on the last business day of each and every __________________
thereafter, except that the final installment not sooner paid shall be due on
_______________, 20___, the final maturity hereof.

     The Borrower promises to pay interest (computed annually) at said office on
the balance of principal from time to time remaining outstanding and unpaid
hereon at the rate per annum equal at all times to the Interest Rate as defined
in Section 12.1 of the Loan and Security Agreement (as defined below) on the
last business day of each and every ____________, commencing ___________,200___,
and in each year thereafter and on the final maturity date of this Note. On
demand, the Borrower promises to pay interest on any overdue principal hereof
(whether by lapse of time, acceleration, or otherwise) until paid at the stated
rate.

     This Note is issued under the terms and provisions of that certain
Berkshire Bank Employee Stock Ownership Trust Loan and Security Agreement
bearing even date herewith by and between the Borrower and the Lender (the "Loan
and Security Agreement") and this Note and the holder hereof are entitled to all
the benefits and security provided for by or referred to in such Loan and
Security Agreement.

     This Note may be declared due prior to its express maturity and voluntary
prepayments may be made hereon, all in the events, on the terms and in the
manner as provided in such Loan and Security Agreement.

     Recourse for the payment of this Note has been limited by the provisions of
the Loan and Security Agreement and this Note is expressly made subject to such
provisions. This Note shall be governed by and construed in accordance with the
laws of the Commonwealth of Massachusetts without regard to principles of
conflicts of laws. The Borrower hereby waives presentment for payment and
demand.
<PAGE>

     Upon the occurrence of a Default as such term is defined in the Loan and
Security Agreement at the option of the Lender, all amounts payable by the
Borrower to the Lender under the terms of this Note may immediately become due
and payable by the Borrower to the Lender pursuant to the provisions of Section
9.3 of the Loan and Security Agreement, and the Lender shall have all of the
rights, powers, and remedies available under the terms of this Note, any of the
other documents evidencing and securing this Loan and all applicable laws. The
Borrower and all endorsers, guarantors, and other parties who may now or in the
future be primarily or secondarily liable for the payment of the indebtedness
evidenced by this Note hereby severally waive presentment, protest and demand,
notice of protest, notice of demand and of dishonor and non-payment of this Note
and expressly agree that this Note any payment hereunder may be extended from
time to time without in any way affecting the liability of the Borrower,
guarantors and endorsers.

                                    [TRUSTEE] and its successors in trust, as
                                    Trustee under that certain Berkshire Bank
                                    Employee Stock Ownership Plan Trust
                                    effective __________200__, by and between
                                    the undersigned and Berkshire Bank

                                    By:____________________________________

<PAGE>

                                   EXHIBIT B
                              SECURITY AGREEMENT
              INSTRUMENTS OR NEGOTIABLE DOCUMENTS TO BE DEPOSITED

    For new value contemporaneously given by [ESOP Subsidiary] ("Lender") to the
undersigned ("Borrower"), the receipt whereof is hereby acknowledged and subject
to the terms and provisions of the Loan and Security Agreement described below,
the Borrower does hereby grant a security interest to said Lender in the
instruments or negotiable documents hereafter described ("Collateral"), in all
of which Collateral the Borrower warrants that the Borrower has good, valid and
effective rights to the ownership and possession thereof and to the grant of the
security interest hereby made:

    All Shares of the common stock, par value $.01 per share, of Berkshire Hills
    Bancorp, Inc., a Delaware corporation, acquired with the proceeds of the
    Loan Amount.

    Borrower agrees, upon request, to deliver said collateral to said Lender as
    soon as practicable after Borrower's receipt of one or more certificates
    therefore.

    Said security interest secures the payment of all indebtedness and
liabilities as undertaken in the Loan and Security Agreement to which this is a
part, now existing or hereafter arising, and the Lender has all the rights with
respect to said Collateral and said security interest as more fully set forth in
the form of secured note or notes executed and delivered by the undersigned to
said Lender prior hereto or contemporaneously herewith.

    This agreement, including matters of interpretation and construction, and
the rights of the Lender and the duties and obligations of the debt hereunder
are to be determined in accordance with the laws of the Commonwealth of
Massachusetts, particularly the Uniform Commercial Code, except where preempted
by federal law.

Dated at Pittsfield, Massachusetts the __ day of ___________, 2000.

                                    [TRUSTEE], and its successors in trust, as
                                    Trustee under that certain Berkshire Bank
                                    Employee Stock Ownership Trust effective
                                    ____________, 200___, by and between the
                                    undersigned and Berkshire Bank

                                    By:_________________________________<PAGE>

                                                                    EXHIBIT 10.2

                                    FORM OF
                                BERKSHIRE BANK
                             EMPLOYMENT AGREEMENT

     This EMPLOYMENT AGREEMENT ("Agreement") is made effective as of [date] (the
"Effective Time") by and between Berkshire Bank (the "Bank"), with its principal
offices at 24 North Street, Pittsfield, Massachusetts, 01202, and [name]
("Executive").  Any reference to the "Holding Company" herein shall mean
Berkshire Hills Bancorp Inc. or any successor to Berkshire Hills Bancorp Inc.

     WHEREAS, the Bank believes that the assurance of Executive's employment by
the Bank for the term of this Agreement and the benefit of his business
experience are of material importance; and

     WHEREAS, Executive desires to serve in the employ of the Bank on a full-
time basis for the term of this Agreement.

     NOW, THEREFORE, in consideration of the mutual covenants herein contained,
and upon the other terms and conditions hereinafter provided, the parties to
this Agreement hereby agree as follows:

1.   POSITIONS AND RESPONSIBILITIES

(a)  During the term of this Agreement Executive agrees to serve as
[position(s)] of the Bank. Executive shall render administrative and management
services to the Bank such as are customarily performed by persons in a similar
executive capacity. During the term of this Agreement, Executive also agrees to
serve, if elected, as director of the Bank and in such capacity will carry out
such duties and responsibilities reasonably appropriate to that office.

(b)  During the term of Executive's employment under this Agreement, except for
periods of absence occasioned by illness, vacation, and other reasonable leaves
of absence, Executive shall devote substantially all his business time,
attention, skill, and efforts to the faithful performance of his duties under
this Agreement, including activities and services related to the organization,
operation and management of the Bank, as well as participation in community,
professional and civic organizations; provided, however, that, with the approval
of the Board of Directors of the Bank (the "Board of Directors"), as evidenced
by a resolution of the Board of Directors, from time to time, Executive may
serve, or continue to serve, on the boards of directors of, and hold any other
offices or positions in, companies or organizations, which, in the judgment of
the Board of Directors, will not present any conflict of interest with the Bank
or materially affect the performance of Executive's duties pursuant to this
Agreement.

(c)  Notwithstanding anything herein contained to the contrary, either Executive
or the Bank may
<PAGE>

terminate Executive's employment with the Bank at any time during the term of
this Agreement, subject to the terms and conditions of this Agreement.

2.   TERM OF EMPLOYMENT

Executive's employment under this Agreement shall be deemed to have commenced as
of the Effective Time and shall continue for a period of thirty-six (36) full
calendar months from the Effective Time.  Commencing on the date of execution of
this Agreement, the term of this Agreement shall extend for one day each day
until such time as the Board of Directors or Executive elects not to extend the
term of the Agreement by giving written notice to the other party in accordance
with provisions of Section 8 of this Agreement, in which case the term of this
Agreement shall become fixed and shall end on the third anniversary of the date
of such written notice.

3.   COMPENSATION, BENEFITS AND REIMBURSEMENT

(a)  Base Salary. The Bank shall pay Executive an annual salary of not less
than $[amount] ("Base Salary"). Executive's Base Salary shall be payable in
accordance with the normal payroll practices of the Bank. Whenever used in this
Agreement, Base Salary shall include any amounts of compensation deferred by
Executive under any tax-qualified retirement or welfare benefit plan or any
other deferred compensation arrangement maintained by the Bank. During the term
of this Agreement, the Board of Directors or a committee appointed by a Board of
Directors shall review Executive's Base Salary at least annually and the Board
of Directors or the committee may increase Executive's Base Salary at any time.
Any increase in Executive's Base Salary shall become a term of this Agreement
and shall be the new "Base Salary" for purposes of this Agreement.

(b)  Incentive Compensation. In addition to his Base Salary, Executive shall be
entitled to participate in and shall receive payments under any incentive
compensation bonus program sponsored by the Bank. Executive's incentive
compensation shall be determined by the Board of Directors or a committee
appointed by the Board of Directors at a level appropriate for executive
officers.

(c)  Supplemental Pension and Life Insurance. The Bank shall continue to
provide to Executive, without cost, the supplemental pension and life insurance
arrangements in place at the Effective Time. The supplemental pension and life
insurance arrangements shall be governed by the terms of the specific agreements
in effect at the Effective Time.

(d)  Club Dues. In addition to any other compensation provided for under this
Agreement, the Bank shall pay Executive an amount sufficient, on an after-tax
basis, to maintain his membership at [club].

(e)  Automobile and Cellular Phone. The Bank shall provide Executive with, and
Executive shall have the primary use of, an automobile owned or leased by the
Holding Company or the Bank and the Holding Company or the Bank shall pay (or
reimburse Executive) for all expenses of insurance,

                                      -2-
<PAGE>

registration, operation and maintenance of the automobile. Executive shall
comply with reasonable reporting and expense limitations on the use of such
automobile, as the Board of Directors may establish from time to time, and the
Holding Company or the Bank shall annually include on Executive's Form W-2 any
amount attributable to Executive's personal use of such automobile. The Holding
Company or the Bank shall also provide Executive with a cellular phone and shall
pay (or reimburse Executive) for all reasonable expenses related to the business
use of such phone.

(f)  Vacation; Holidays; Sick Time. Executive shall be entitled to vacation in
accordance with the standard vacation policies of the Bank for senior executive
officers, but in no event less than four (4) weeks vacation during each year of
employment. Executive shall take vacation at a time mutually agreed upon by the
Bank and Executive. Executive shall receive his Base Salary and other benefits
during periods of vacation. Executive shall also be entitled to paid legal
holidays in accordance with the policies of the Bank. Executive shall also be
entitled to sick leave in accordance with the policies of the Bank for senior
executive officers, but in no event less than the number of days of sick leave
per year to which Executive was entitled at the Effective Time.

(g)  Other Employee Benefits. In addition to any other compensation or benefits
provided for under this Agreement, Executive shall be entitled to continue to
participate in any employee benefit plans, arrangements and perquisites of the
Bank in which he participates or is eligible to participate at the Effective
Time. Executive shall also be entitled to participate in any employee benefits
or perquisites the Bank offers to full-time employees or executive management in
the future. The Bank will not, without Executive's prior written consent, make
any changes in such plans, arrangements or perquisites which would adversely
affect Executive's rights or benefits thereunder without separately providing
for an arrangement that ensures Executive receives or will receive the economic
value that Executive would otherwise lose as result of such adverse affect.
Without limiting the generality of the foregoing provisions of this paragraph,
Executive shall be entitled to participate in or receive benefits under all
plans relating to stock options, restricted stock awards, stock purchases,
pension, profit sharing, employee stock ownership, supplemental retirement,
group life insurance, medical and other health and welfare coverage that are
made available by the Bank at the Effective Time or at any time in the future
during the term of this Agreement, subject to and on a basis consistent with the
terms, conditions and overall administration of such plans and arrangements.
Nothing paid to Executive under any such plans or arrangements will be deemed to
be in lieu of other compensation to which Executive is entitled under this
Agreement.

4.   PAYMENTS TO EXECUTIVE UPON AN EVENT OF TERMINATION.

(a)  Upon the occurrence of an Event of Termination (as herein below) during
Executive's term of employment under this Agreement, the provisions of this
Section 4 shall apply. As used in this Agreement, an "Event of Termination"
shall mean and include any one or more of the following: (i) the termination of
Executive's full-time employment under this Agreement by the Bank for any reason
other than a termination governed by Section 7 of this Agreement; or (ii)
Executive's resignation from his employment with the Bank upon, any (A) failure
to elect or re-elect or to appoint or re-appoint Executive to his positions sets
forth in Section 1 of this Agreement, unless

                                      -3-
<PAGE>

Executive consents to such event, (B) material change in Executive's functions,
duties, or responsibilities with the Bank or its subsidiaries, which change
would cause Executive's position(s) to become one of lesser responsibility,
importance, or scope, unless Executive consents to such event, (C) relocation of
Executive's principal place of employment by more than 25 miles from its
location at the Effective Time, unless Executive consents to such event, (D)
material reduction in the benefits and perquisites provided to Executive from
those being provided as of the Effective Time of this Agreement, unless
Executive consents to such event, (E) liquidation or dissolution of the Holding
Company or the Bank, or (F) breach of this Agreement by the Bank or the Holding
Company. Upon the occurrence of any event described in clauses (A), (B), (C),
(D), (E) or (F), above, Executive shall have the right to terminate his
employment under this Agreement by resignation upon not less than sixty (60)
days prior written notice given within six full calendar months after the
applicable event giving rise to Executive's right to elect to terminate his
employment.

(b)  Upon Executive's termination from employment in accordance with paragraph
(a) of this Section 4, on the Date of Termination, as defined in Section 8 of
the Agreement, the Bank shall be obligated to pay Executive, or, in the event of
his death following the Date of Termination, his beneficiary or beneficiaries,
or his estate, as the case may be, an amount equal to the sum of: (i) the Base
Salary and incentive compensation that would have been paid to Executive for the
remaining term of this Agreement had the Event of Termination not occurred
(based on Executive's then current Base Salary and most recently paid or accrued
bonus at the time of the Event of Termination); plus (ii) the value, as
calculated by a recognized firm customarily performing such valuation, of any
stock options which as of the Date of Termination, that have been granted to
Executive but are not exercisable by Executive and the value of any restricted
stock awards which have been granted to Executive, but in which Executive does
not have a non-forfeitable or fully-vested interest as of the Date of
Termination; plus (iii) the value of all employee benefits that would have been
provided to Executive for the remaining term of the this Agreement had an Event
of Termination not occurred, based on the most recent level of contribution,
accrual or other participation by or on behalf of Executive. At the election of
Executive, which election is to be made prior to the Date of Termination, such
payments shall be made in a lump sum. In the event that no election is made,
payment to Executive will be made on a monthly basis in approximately equal
installments during the remaining unexpired term of the Agreement. Such payments
shall not be reduced in the event Executive obtains other employment following
termination of employment.

(c)  In addition to the payments provided for in paragraph (b) of this Section
4, upon Executive's termination of employment in accordance with the provisions
of paragraph (a) of this Section 4, to the extent that the Holding Company or
the Bank continues to offer any life, medical, health, disability or dental
insurance plan or arrangement in which Executive participates in on the last day
of his employment (each being a "Welfare Plan"), Executive and his covered
dependents shall continue participating in such Welfare Plans, subject to the
same premium contributions on the part of Executive as were required immediately
prior to the Event of Termination until the earlier of (i) his death (ii) his
employment by another employer other than one of which he is the majority owner
or (iii) the end of the remaining term of this Agreement. If the Holding Company
or the Bank does

                                      -4-
<PAGE>

not offer the Welfare Plans at any time after the Event of Termination, then the
Bank shall provide Executive with a payment equal to the actuarial value of the
provision of such benefits for the period which runs until the earlier of (i)
his death (ii) his employment by another employer other than one of which he is
the majority owner or (iii) the end of the remaining term of this Agreement.

5.   CHANGE IN CONTROL

(a)  For purposes of this Agreement, a "Change in Control" shall mean 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 Bank Change in 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
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 of reorganization, merger or 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.

(b)  If any of the events described in paragraph (a) of this Section 5,
constituting a Change in Control, have occurred or the Board of Directors
determines that a Change in Control has occurred,

                                      -5-
<PAGE>

Executive shall be entitled to the benefits provided in paragraphs (c), (d),
(e), (f) and (g) of this Section 5 upon his termination of employment on or
after the date the Change in Control occurs at any time during the term of this
Agreement due to (1) Executive's dismissal or (2) Executive's resignation
following any demotion, loss of title, office or significant authority or
responsibility, reduction in annual compensation or benefits or relocation of
his principals place of employment by more than 25 miles from its location
immediately prior to the Change in Control, unless such termination is because
of his death or Termination for Cause; provided, however, that such payments
shall be reduced by any payment made under Section 4 of this Agreement.

(c)  Upon the occurrence of a Change in Control followed by Executive's
termination of employment, as provided in paragraph (b) of this Section 5, the
Bank shall pay Executive, or in the event of his subsequent death, his
beneficiary or beneficiaries, or his estate, as the case may be, as severance
pay or liquidated damages, or both, a sum equal to the greater of: 1) the
payments due for the remaining term of the Agreement or 2) three (3) times
Executive's average annual compensation for the five (5) preceding taxable years
or such lesser number of years in the event that Executive shall have been
employed by the Bank for less than five (5) years. In determining Executive's
average annual compensation, annual compensation shall include Base Salary and
any other taxable income, including but not limited to amounts related to the
granting, vesting or exercise of restricted stock or stock option awards,
commissions, bonuses (whether paid or accrued for the applicable period),
pension and profit sharing plan contributions or benefits (whether or not
taxable), severance payments, retirement benefits, director or committee fees
and fringe benefits paid or to be paid to Executive or paid for Executive's
benefit during any such year. At the election of Executive, which election is to
be made prior to or within thirty (30) days of the Date of Termination on or
following a Change in Control, such payment may be made in a lump sum (without
discount for early payment) on or immediately following the Date of Termination
(which may be the date a Change in Control occurs) or paid in equal monthly
installments during the sixty (60) months following Executive's termination. In
the event that no election is made, payment to Executive will be made on a
monthly basis during the sixty (60) months following Executive's termination.

(d)  Upon the occurrence of a Change in Control, Executive will be entitled to
receive benefits due him under or contributed by the Bank on his behalf pursuant
to any retirement, incentive, profit sharing or other retirement, bonus,
performance, disability or other employee benefit plan maintained by the Bank on
Executive's behalf to the extent such benefits are not otherwise paid to
Executive under a separate provision of this Agreement.

(e)  Upon the occurrence of a Change in Control and Executive's termination of
employment in connection therewith, the Bank will cause to be continued life,
medical and disability coverage substantially identical to the coverage
maintained by the Bank for Executive and any of his dependents covered under
such plans prior to the Change in Control. Such coverage and payments shall
cease upon the expiration of thirty-six (36) full calendar months following the
Date of Termination. In the event Executive's participation in any such plan or
program is barred by reason of his not being an employee, the Bank shall arrange
to provide Executive and his dependents with benefits substantially similar as
those of which Executive and his dependents would otherwise have

                                      -6-
<PAGE>

been entitled to receive under such plans and programs from which their
continued participation is barred or provide their economic equivalent.

(f)  The use or provision of any membership, license, automobile use, or other
perquisites shall be continued during the remaining term of the Agreement on the
same financial terms and obligations as were in place immediately prior to the
Change In Control. To the extent that any item referred to in this paragraph
will at the end of the term of this Agreement, no longer be available to
Executive, Executive will have the option to purchase all rights then held by
the Bank to such item for a price equal to the then fair market value of the
item.

(g)  In the event that Executive is receiving monthly payments pursuant to
Section 5(c) hereof, on an annual basis, thereafter, between the dates of
January 1 and January 31 of each year, Executive shall elect whether the balance
of the amount payable under the Agreement at that time shall be paid in a lump
sum or on a pro rata basis pursuant to such section. Such election shall be
irrevocable for the year for which such election is made.

6.   CHANGE OF CONTROL RELATED PROVISIONS.

     Notwithstanding the provisions of Section 5, in no event shall the
aggregate payments or benefits to be made or afforded to Executive under said
paragraphs (the "Termination Benefits") constitute an "excess parachute payment"
under Section 280G of the Internal Revenue Code of 1986, as amended, or any
successor thereto, and in order to avoid such a result, Termination Benefits
will be reduced, if necessary, to an amount (the "Non-Triggering Amount"), the
value of which is one dollar ($1.00) less than an amount equal to three (3)
times Executive's "base amount", as determined in accordance with said Section
280G.  The allocation of the reduction required hereby among the Termination
Benefits provided by Section 5 shall be determined by Executive.

7.   TERMINATION FOR CAUSE.

     The term "Termination for Cause" shall mean termination because of
Executive's personal dishonesty, willful misconduct, any breach of fiduciary
duty involving personal profit, intentional failure to perform stated duties,
willful violation of any law, rule, regulation (other than traffic violations or
similar offenses), final cease and desist order or material breach of any
provision of this Agreement.  Notwithstanding the foregoing, Executive shall not
be deemed to have been terminated for Cause unless and until there shall have
been delivered to him a Notice of Termination which shall include a copy of a
resolution duly adopted by the affirmative vote of not less than three-fourths
of the members of the Board of Directors at a meeting of the Board of Directors
called and held for that purpose (after reasonable notice to Executive and an
opportunity for him, together with counsel, to be heard before the Board of
Directors), finding that in the good faith opinion of the Board of Directors,
Executive was guilty of conduct justifying Termination for Cause and specifying
the particulars thereof in detail.  Executive shall not have the right to
receive compensation or other benefits for any period after Termination for
Cause.   During the period beginning on the date of the Notice of Termination
for Cause pursuant to Section 8 hereof through the Date of Termination, stock

                                      -7-
<PAGE>

options granted to Executive under any stock option plan shall not be
exercisable nor shall any unvested awards granted to Executive under any stock
benefit plan of the Bank, vest.  At the Date of Termination, such stock options
and any such unvested awards shall become null and void and shall not be
exercisable by or delivered to Executive at any time subsequent to such
Termination for Cause.

8.   NOTICE.

(a)  Any purported termination by the Bank or by Executive shall be communicated
by Notice of Termination to the other party hereto. For purposes of this
Agreement, a "Notice of Termination" shall mean a written notice which shall
indicate the specific termination provision in this Agreement relied upon and
shall set forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of Executive's employment under the provision so
indicated.

(b)  "Date of Termination" shall mean the date specified in the Notice of
Termination (which, in the case of a Termination for Cause, shall not be less
than thirty (30) days from the date such Notice of Termination is given).

(c)  If, within thirty (30) days after any Notice of Termination is given, the
party receiving such Notice of Termination notifies the other party that a
dispute exists concerning the termination, except upon the occurrence of a
Change in Control and voluntary termination by Executive in which case the Date
of Termination shall be the date specified in the Notice, the Date of
Termination shall be the date on which the dispute is finally determined, either
by mutual written agreement of the parties, by a binding arbitration award, or
by a final judgment, order or decree of a court of competent jurisdiction (the
time for appeal therefrom having expired and no appeal having been perfected)
and provided further that the Date of Termination shall be extended by a notice
of dispute only if such notice is given in good faith and the party giving such
notice pursues the resolution of such dispute with reasonable diligence.
Notwithstanding the pendency of any such dispute, the Bank will continue to pay
Executive his full compensation in effect when the notice giving rise to the
dispute was given (including, but not limited to, Base Salary) and continue him
as a participant in all compensation, benefit and insurance plans in which he
was participating when the notice of dispute was given, until the dispute is
finally resolved in accordance with this Agreement. Amounts paid under this
Section are in addition to all other amounts due under this Agreement and shall
not be offset against or reduce any other amounts due under this Agreement.

9.   POST-TERMINATION OBLIGATIONS.

All payments and benefits to Executive under this Agreement shall be subject to
Executive's compliance with this Section 9 for one (1) full year after the
earlier of the expiration of this Agreement or termination of Executive's
employment with the Bank.  Executive shall, upon reasonable notice, furnish such
information and assistance to the Bank as may reasonably be required by the Bank
in connection with any litigation in which it or any of its subsidiaries or
affiliates is, or may become, a party.

                                      -8-
<PAGE>

10.  NON-COMPETITION AND NON-DISCLOSURE.

(a)  Upon any termination of Executive's employment hereunder pursuant to
Section 4 hereof, Executive agrees not to compete with the Bank for a period of
one (1) year following such termination in any city, town or county in which
Executive's normal business office is located and the Bank has an office or has
filed an application for regulatory approval to establish an office, determined
as of the effective date of such termination, except as agreed to pursuant to a
resolution duly adopted by the Board of Directors. Executive agrees that during
such period and within said cities, towns and counties, Executive shall not work
for or advise, consult or otherwise serve with, directly or indirectly, any
entity whose business materially competes with the depository, lending or other
business activities of the Bank. The parties hereto, recognizing that
irreparable injury will result to the Bank, its business and property in the
event of Executive's breach of this Subsection 10(a) agree that in the event of
any such breach by Executive, the Bank will be entitled, in addition to any
other remedies and damages available, to an injunction to restrain the violation
hereof by Executive, Executive's partners, agents, servants, employees and all
persons acting for or under the direction of Executive. Executive represents and
admits that in the event of the termination of his employment pursuant to
Section 7 of this Agreement, Executive's experience and capabilities are such
that Executive can obtain employment in a business engaged in other lines and/or
of a different nature than the Bank, and that the enforcement of a remedy by way
of injunction will not prevent Executive from earning a livelihood. Nothing
herein will be construed as prohibiting the Holding Company or its subsidiaries
from pursuing any other remedies available to the Bank for such breach or
threatened breach, including the recovery of damages from Executive.

(b)  Executive recognizes and acknowledges that the knowledge of the business
activities and plans for business activities of the Bank as it may exist from
time to time, is a valuable, special and unique asset of the business of the
Bank. Executive will not, during or after the term of his employment, disclose
any knowledge of the past, present, planned or considered business activities of
the Bank to any person, firm, corporation, or other entity for any reason or
purpose whatsoever unless expressly authorized by the Board of Directors or
required by law. Notwithstanding the foregoing, Executive may disclose any
knowledge of banking, financial and/or economic principles, concepts or ideas
which are not solely and exclusively derived from the business plans and
activities of the Bank. In the event of a breach or threatened breach by
Executive of the provisions of this Section 10, the Bank will be entitled to an
injunction restraining Executive from disclosing, in whole or in part, the
knowledge of the past, present, planned or considered business activities of the
Bank or from rendering any services to any person, firm, corporation, other
entity to whom such knowledge, in whole or in part, has been disclosed or is
threatened to be disclosed. Nothing herein will be construed as prohibiting the
Bank from pursuing any other remedies available to the Bank for such breach or
threatened breach, including the recovery of damages from Executive.

                                      -9-
<PAGE>

11.  DEATH AND DISABILITY

(a)  Death. Notwithstanding any other provision of this Agreement to the
contrary, in the event of Executive's death during the term of this Agreement,
the Bank shall immediately pay his estate any salary and bonus accrued but
unpaid as of the date of his death, and, for a period of six months after
Executive's death, the Bank shall continue to provide medical insurance benefits
existing on the date of his death and shall pay Executive's designated
beneficiary all compensation that would otherwise be payable to him pursuant to
Section 3 of this Agreement. This provision shall not negate any rights
Executive or his beneficiaries may have to death benefits under any employee
benefit plan of the Bank.

(b)  Disability.

     (i)   Disability.  If during the term of Executive's employment Executive
begins to receive disability benefits under the long-term disability insurance
policy maintained by the Bank (the "Disability Policy"), then the Bank's
obligation to pay Executive his Base Salary shall, as of the date such benefits
first become payable under the Disability Policy on account of the his
disability, be reduced to equal the difference between Executive's Base Salary
and amounts received under all long-term disability policies, to the extent that
such salary payments do not result in a reduction in disability payments.

     (ii)  Incapacity. If as a result of Disability Executive is determined by a
physician chosen by the Bank and reasonably acceptable to Executive or
Executive's personal representatives not to be capable of fulfilling Executive's
responsibilities as an officer of the Bank or the Holding Company ("Incapacity
Determination"), (1) Executive shall continue to be covered by the Bank's
medical insurance and life insurance policies until the third anniversary of the
Incapacity Determination, and (2) the Bank's obligation to provide Executive
with other employment related fringe benefits hereunder shall cease as of the
date of such Incapacity Determination ("Incapacity Determination Date"). Prior
to the Incapacity Determination Date, the Bank shall continue to pay Executive
his annual salary in usual installments and Executive shall continue to receive
all other employment related fringe benefits due to Executive in accordance with
this Employment Agreement. The Bank's obligation to provide Executive with the
benefits described in Section 3(c) shall not be affected by an Incapacity
Determination unless the terms of the separate arrangements governing such
benefits so provide.

     (iii) Termination of Employment by Reason of Incapacity. At any time from
and after the Incapacity Determination date, the Board, in its discretion, may
elect to terminate Executive's employment by reason of such incapacity. Any such
termination as a result of incapacity shall be considered to be an Event of
Termination in accordance with Section 4 of this Agreement.

                                      -10-
<PAGE>

12.  SOURCE OF PAYMENTS.

(a)  All payments provided in this Agreement shall be timely paid in cash or
check from the general funds of the Bank subject to Section 12(b). The Holding
Company, however, unconditionally guarantees payment and provision of all
amounts and benefits due hereunder to Executive and, if such amounts and
benefits due from the Bank are not timely paid or provided by the Bank, such
amounts and benefits shall be paid or provided by the Holding Company.

(b)  Notwithstanding any provision herein to the contrary, to the extent that
payments and benefits, as provided by this Agreement, are paid to or received by
Executive under the Employment Agreement dated [date], between Executive and the
Holding Company, such compensation payments and benefits paid by the Holding
Company will be subtracted from any amount due simultaneously to Executive under
similar provisions of this Agreement. Payments pursuant to this Agreement and
the Holding Company Agreement shall be allocated in proportion to the level of
activity and the time expended on such activities by Executive as determined by
the Holding Company and the Bank.

13.  EFFECT ON PRIOR AGREEMENTS AND EXISTING BENEFITS PLANS.

This Agreement contains the entire understanding between the parties hereto and
supersedes any prior employment agreement between the Bank or any predecessor of
the Bank and Executive, except that this Agreement shall not affect or operate
to reduce any benefit or compensation inuring to Executive of a kind elsewhere
provided.  No provision of this Agreement shall be interpreted to mean that
Executive is subject to receiving fewer benefits than those available to him
without reference to this Agreement.

14.  NO ATTACHMENT.

(a)  Except as required by law, no right to receive payments under this
Agreement shall be subject to anticipation, commutation, alienation, sale,
assignment, encumbrance, charge, pledge, or hypothecation, or to execution,
attachment, levy, or similar process or assignment by operation of law, and any
attempt, voluntary or involuntary, to affect any such action shall be null,
void, and of no effect.

(b)  This Agreement shall be binding upon, and inure to the benefit of,
Executive and the Bank and their respective successors and assigns.

15.  MODIFICATION AND WAIVER.

(a)  This Agreement may not be modified or amended except by an instrument in
writing signed by the parties hereto.

(b)  No term or condition of this Agreement shall be deemed to have been waived,
nor shall there

                                      -11-
<PAGE>

be any estoppel against the enforcement of any provision of this Agreement,
except by written instrument of the party charged with such waiver or estoppel.
No such written waiver shall be deemed a continuing waiver unless specifically
stated therein, and each such waiver shall operate only as to the specific term
or condition waived and shall not constitute a waiver of such term or condition
for the future as to any act other than that specifically waived.

16.  SEVERABILITY.

If, for any reason, any provision of this Agreement, or any part of any
provision, is held invalid, such invalidity shall not affect any other provision
of this Agreement or any part of such provision not held so invalid, and each
such other provision and part thereof shall to the full extent consistent with
law continue in full force and effect.

17.  HEADINGS FOR REFERENCE ONLY.

The headings of sections and paragraphs herein are included solely for
convenience of reference and shall not control the meaning or interpretation of
any of the provisions of this Agreement.

18.  GOVERNING LAW.

This Agreement shall be governed by the laws of the Commonwealth of
Massachusetts without regards to principles of conflicts of law of this state.

19.  ARBITRATION.

Any dispute or controversy arising under or in connection with this Agreement
shall be settled exclusively by arbitration, conducted before a panel of three
arbitrators sitting in a location selected by Executive within fifty (50) miles
from the location of the Bank, in accordance with the rules of the American
Arbitration Association then in effect.  Judgment may be entered on the
arbitrator's award in any court having jurisdiction; provided, however, that
Executive shall be entitled to seek specific performance of his right to be paid
until the Date of Termination during the pendency of any dispute or controversy
arising under or in connection with this Agreement.

In the event any dispute or controversy arising under or in connection with
Executive's termination is resolved in favor of Executive, whether by judgment,
arbitration or settlement, Executive shall be entitled to the payment of all
back-pay, including salary, bonuses and any other cash compensation, fringe
benefits and any compensation and benefits due Executive under this Agreement.

                                      -12-
<PAGE>

20.  PAYMENT OF LEGAL FEES.

All reasonable legal fees paid or incurred by Executive pursuant to any dispute
or question of interpretation relating to this Agreement shall be paid or
reimbursed by the Bank, if Executive is successful pursuant to a legal judgment,
arbitration or settlement.

21.  INDEMNIFICATION.

(a)  The Bank shall provide Executive (including his heirs, executors and
administrators) with coverage under a standard directors' and officers'
liability insurance policy at its expense and shall indemnify Executive (and his
heirs, executors and administrators) to the fullest extent permitted under
federal law against all expenses and liabilities reasonably incurred by him in
connection with or arising out of any action, suit or proceeding in which he may
be involved by reason of his having been a director or officer of the Bank
(whether or not he continues to be a director or officer at the time of
incurring such expenses or liabilities), such expenses and liabilities to
include, but not be limited to, judgments, court costs and attorneys' fees and
the cost of reasonable settlements.

(b)  Any payments made to Executive pursuant to this Section are subject to and
conditioned upon compliance with 12 U.S.C. Section 1828(k) and 12 C.F.R. Part
359 and any rules or regulations promulgated thereunder.

22.  SUCCESSOR TO THE HOLDING COMPANY.

The Bank shall require any successor or assignee, whether direct or indirect, by
purchase, merger, consolidation or otherwise, to all or substantially all the
business or assets of the Bank or the Holding Company, expressly and
unconditionally to assume and agree to perform the Bank's obligations under this
Agreement, in the same manner and to the same extent that the Bank would be
required to perform if no such succession or assignment had taken place.

                                      -13-
<PAGE>

                                  SIGNATURES

     IN WITNESS WHEREOF, Berkshire Bank has caused this Agreement to be executed
and its seal to be affixed hereunto by its duly authorized officer and its
directors, and Executive has signed this Agreement, on [date].

ATTEST:                                 BERKSHIRE BANK

_______________________________         By:  _________________________

Corporate Secretary                          For the Entire Board of Directors

          [SEAL]

WITNESS:                                EXECUTIVE

_______________________________         By:  _________________________

Corporate Secretary

                                      -14-

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