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EXHIBIT 10.14  

 
 

DANVERS BANCORP, INC.
  CHANGE IN CONTROL
  SEVERANCE PAY PLAN    
    

        Danvers Bancorp, Inc. (the "Company") sets forth herein the terms of its Change in Control Severance Pay Plan (the "Plan") as follows: 

SECTION
1.    PURPOSE.    

        The
Board of Directors of the Company believes that it is in the best interests of the Company to encourage the continued dedication of certain in the face of potentially distracting
circumstances arising from the possibility of a change in control of the Company, and the Board has established the Plan for this purpose. 

SECTION
2.    DEFINITIONS.    

        (a)   "Accrued
Obligations" means, with respect to an Employee, the sum of (i) the Employee's earned compensation through the Date of Termination to the extent not
theretofore paid, and (ii) any accrued vacation pay to the extent not theretofore paid. 

        (b)   "Base
Pay" means 

        (i)    with
respect to a salaried Employee, the Employee's annual base salary prior to any pre-tax deductions, but shall not include bonus payments, 401(k) matching
contributions, or any other payments not specifically provided for under the Plan; 

        (ii)   with
respect to an hourly Employee, the Employee's total hourly wages prior to any pre-tax deductions for the 12 full calendar months preceding the month in
which the Change in Control occurs, including base salary and overtime pay, but shall not include bonus payments, 401(k) matching contributions, or any other payments not specifically provided for
under the Plan; and 

        (iii)  with
respect to a commissioned Employee, the Employee's base salary, if any, plus the commissions earned by the Employee, in both instances prior to any
pre-tax deductions, in the 12 full calendar months preceding the month in which the Change in Control occurs, but shall not include bonus payments, 401(k) matching contributions, or any
other payments not specifically provided for under the Plan. 

        (c)   "Board"
means the Board of Directors of Danvers Bancorp, Inc. 

        (d)   "Cause"
means and shall be limited to: (i) willful misappropriation of the funds or property of the Company, Danversbank and their related entities;
(ii) use of alcohol or illegal drugs interfering with the performance of an Employee's obligations, continuing after written warning of such actions; (iii) admission, confession,
indictment or plea bargain to, or conviction of, a felony, or of any crime involving moral turpitude, dishonesty, theft, unethical or unlawful conduct; (iv) commission of any willful or
intentional act which could reasonably be expected to injure the reputation, business or business relationships of the Company, Danversbank and their related entities or which may tend to bring the
Employee or the Company, Danversbank and their related entities into disrepute, or the willful commission of any act which is a breach of an Employee's fiduciary duties to the Company, Danversbank and
their related entities; and (v) commission of any act which constitutes a material breach of the policies of the Company and Danversbank, including but not limited to the disclosure of any
confidential information or trade secrets pertaining to the Company, Danversbank and their related entities. 

        (e)   "Change
in Control" means any of the following: 

        (i)    any
"person," as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the "Act") (other than the Company, any of its
subsidiaries, or any 

 

trustee,
fiduciary or other person or entity holding securities under any employee benefit plan or trust of the Company or any of its subsidiaries), together with all "affiliates" and "associates" (as
such terms are defined in Rule 12b-2 under the Act) of such person, shall become the "beneficial owner" (as such term is defined in Rule 13d-3 under the Act),
directly or indirectly, of securities of the Company representing 25 percent or more of the combined voting power of the Company's then outstanding securities having the right to vote in an
election of the Company's Board ("Voting Securities") (in such case other than as a result of an acquisition of securities directly from the Company); or 

        (ii)   persons
who, as of the date hereof, constitute the Company's Board (the "Incumbent Directors") cease for any reason, including, without limitation, as a result of a
tender offer, proxy contest, merger or similar transaction, to constitute at least a majority of the Company's Board, provided that any person becoming a director of the Company subsequent to the date
hereof shall be considered an Incumbent Director if such person's election was approved by or such person was nominated for election by either (A) a vote of at least a majority of the Incumbent
Directors or (B) a vote of at least a majority of the Incumbent Directors who are members of a nominating committee comprised, in the majority, of Incumbent Directors; but provided further,
that any such person whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of members of the Company's Board or other actual or
threatened solicitation of proxies or consents by or on behalf of a person other than the Board, including by reason of agreement intended to avoid or settle any such actual or threatened contest or
solicitation, shall not be considered an Incumbent Director; or 

        (iii)  the
consummation of (A) any consolidation or merger of the Company where the stockholders of the Company, immediately prior to the consolidation or merger,
would not, immediately after the consolidation or merger, beneficially own (as such term is defined in Rule 13d-3 under the Act), directly or indirectly, shares representing in the
aggregate more than 50 percent of the voting shares of the Company issuing cash or securities in the consolidation or merger (or of its ultimate parent corporation, if any), or (B) any
sale, lease, exchange or other transfer (in one transaction or a series of transactions contemplated or arranged by any party as a single plan) of all or substantially all of the assets of the
Company; or 

        (iv)  the
approval by the Company's stockholders of the Company of any plan or proposal for the liquidation or dissolution of the Company. 

        Notwithstanding
the foregoing, a "Change of Control" shall not be deemed to have occurred for purposes of the foregoing clause (i) solely as the result of an acquisition of
securities by the Company which, by reducing the number of shares of Voting Securities outstanding, increases the proportionate number of Voting Securities beneficially owned by any person to
25 percent or more of the combined voting power of all of the then outstanding Voting Securities; provided, however, that if any person referred to in this sentence shall thereafter become the
beneficial owner of any additional shares of Voting Securities (other than pursuant to a stock split, stock dividend, or similar transaction or as a result of an acquisition of securities directly
from the Company) and immediately thereafter beneficially
owns 25 percent or more of the combined voting power of all of the then outstanding Voting Securities, then a "Change of Control" shall be deemed to have occurred for purposes of the foregoing
clause (i). 

        (f)    "Change
in Control Period" means the one-year period following a Change in Control. 

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

        (h)   "Company"
means Danvers Bancorp, Inc. a Delaware corporation, or, from and after a Change in Control of the successor to the Company in any such Change in
Control. 

        (i)    "Danversbank"
means Danversbank, a Massachusetts savings bank, or from and after a Change in Control, the successor to Danversbank in any such Change in Control. 

2

 

        (j)    "Date
of Termination" means, with respect to an Employee, the effective date of termination of the Employee's employment with the Company, Danversbank and all of their
subsidiaries. 

        (k)   "Employee"
means a regular employee of the Company and/or Danversbank at the time of the Change in Control, other than any employee who is party to an employment or
letter agreement with the Company and/or Danversbank that provides for severance payments. A temporary employee or consultant of the Company and/or Danversbank is not considered an Employee eligible
to receive benefits under this Plan. 

        (l)    "Good
Reason" means that the Employee is required to move his employment location to a location  [35] miles or more from his job site immediately prior to the Change in Control. 

        (m)  "Other
Benefits" means, with respect to an Employee, any other amounts or benefits required to be paid or provided or which the Employee is eligible to receive under any
plan, program, policy or practice or contract or agreement of the Company or Danversbank. 

        (n)   "Severance
Period" means the number of weeks set forth on Schedule A for which benefits are provided pursuant to
Section 4(a). 

        (o)   "Years
of Service" means full years employment of the Employee with the Company and Danversbank or a subsidiary, including any predecessor thereof. A partial Year of
Service of less than six months will be rounded down and disregarded while a partial Year of Service of six months to 11 months will be rounded up to a full year. 

SECTION
3.    TERM.    

        This
Plan shall be effective during the Change in Control Period; provided, however, that
this initial term of the Plan shall be automatically extended, if necessary, so that this Plan remains in full force and effect until all payments required to be made hereunder have been made.
References herein to the term of this Plan shall include the initial term and any additional period for which this Plan is extended or renewed. Notwithstanding the preceding, there shall be no payment
from this Plan, and no entitlement to payment from this Plan, in the event of an automatic termination of the Plan in accordance with Section 10. 

SECTION
4.    SEVERANCE BENEFITS FOLLOWING A CHANGE IN CONTROL.    

        (a)   If
the Company or Danversbank terminates an Employee's employment other than for Cause or death during the Change in Control Period, the Company and/or Danversbank shall
pay to the Employee the following amounts: 

        (i)    the
Accrued Obligations in a lump sum in cash within ten business days of the Date of Termination; 

        (ii)   the
severance benefits provided in Schedule A; provided however,
that the Employee has executed a Waiver and Release substantially in the form set forth in Schedule B, and the revocation period for such Waiver
and Release has passed. 

        (b)   The
Company and/or Danversbank shall pay the severance benefits in a lump sum in cash within ten business days of the Date of Termination;  provided further, that the Company or Danversbank shall provide the
Employee with notice of employment termination and with a copy of the Waiver and
Release sufficiently in advance of the Employee's Date of Termination to satisfy the 21- or 45-day consideration period, as applicable, under the Waiver and Release. All
severance benefits provided to an Employee pursuant to Section 4(a) shall be reduced and/or offset by any notice, payments or benefits to which the Employee may be entitled under the federal
Worker Adjustment and Retraining Notification (WARN) Act, 29 U.S.C. § 2101 et seq., as amended, and any applicable state plant or facility closing or mass layoff law. 

3

 

        The
mere occurrence of a Change in Control shall not be treated as a termination of an Employee's employment under this Plan, nor shall the mere transfer of an Employee's employment
between the Company, Danversbank and/or any of their related entities be treated as a termination of an Employee's employment under this Plan. 

        Anything
in this Plan to the contrary notwithstanding, if, as a result of termination of an Employee's employment with the Company and/or Danversbank, the Employee would receive any
payment that, absent the application of this Section 4(b), would be subject to interest and additional tax imposed pursuant to Section 409A(a) of the Code as a result of the application
of Section 409A(2)(B)(i) of the Code, then no such payment shall be payable prior to the date that is the earlier of (1) six months after the Employee's separation from service,
or (2) the Employee's death. 

        (c)   For
the Severance Period after the Date of Termination, or such longer period as may be provided by the terms of the appropriate plan, program, practice or policy, the
Company and/or Danversbank shall continue or cause to be continued, benefits to the Employee and/or the Employee's family at least equal to those which would have been provided to them in accordance
with the welfare benefit plans, practices, policies and programs provided by the Company and/or Danversbank for medical, vision, and dental benefits to the extent applicable generally to other peer
employees of the Company, Danversbank and their related entities, as if the Employee's employment had not been terminated and with the same the level of monthly Employee contribution as applicable
prior to termination of employment. The continuation coverage under this Section 4(c) shall count towards the obligation of the Company and/or Danversbank and their related entities to provide
COBRA continuation coverage. 

        (d)   Cause; Death; Other Than for Good Reason. If an Employee's employment is terminated for Cause or death during the Change
in Control Period or the Employee voluntarily terminates employment other than for Good Reason, the Employee shall only be entitled to his Accrued Obligation. 

SECTION
5.    PARACHUTE PAYMENT.    

        In
the event any payment to any Employee under this Plan, when combined with any other compensation payment that is contingent on the Change in Control of the Company, exceeds in the
aggregate the amount that may be deducted by the Company or its affiliated entities by reason of the operation of Section 280G of the Code, the amount of any payment to such Employee under this
Plan shall be reduced to the maximum amount which can be deducted by the Company. 

SECTION
6.    CONFIDENTIALITY.    

        An
Employee shall hold in a fiduciary capacity for the benefit of the Company and Danversbank all secret or confidential information, knowledge or data relating to the Company and
Danversbank, and their respective businesses, which shall have been obtained by the Employee during the Employee's employment by Danversbank and which shall not be or become public knowledge (other
than by acts by the Employee or representatives of the Employee in violation of this Plan). After the Employee's Date of Termination, the Employee shall not, without the prior written consent of the
Company or Danversbank or as may otherwise be required by law or legal process, communicate or divulge any such information, knowledge or data to anyone other than the Company, Danversbank and those
designated by either of them. 

SECTION
7.    EXPENSES.    

        The
Company and/or Danversbank shall pay any and all reasonable legal fees and expenses incurred by an Employee in seeking to obtain or enforce, by bringing an action against the Company
or Danversbank, any right or benefit provided in this Plan if the Employee is successful in whole or in part in such action. 

4

 

SECTION
8.    WITHHOLDING.    

        Notwithstanding
anything in this Plan to the contrary, all payments required to be made by the Company and/or Danversbank hereunder to an Employee or his estate or beneficiaries shall be
subject to the withholding of such amounts relating to taxes as the Company and/or Danversbank reasonably may determine it should withhold pursuant to any applicable law or regulation. In lieu of
withholding such amounts, in whole or in part, the Company and/or Danversbank may, in the sole discretion of either of them, accept other provisions for the payment of taxes and any withholdings as
required by law, provided that the Company and/or Danversbank is satisfied that all requirements of law affecting its responsibilities to withhold compensation have been satisfied. 

SECTION
9.    NO DUTY TO MITIGATE.    

        An
Employee's payments received hereunder shall be considered severance pay in consideration of past service and entitlement thereto shall not be governed by any duty to mitigate damages
by seeking further employment. 

SECTION
10.    AMENDMENT, SUSPENSION OR TERMINATION.    

        This
Plan may be amended, suspended or terminated at any time by the Board; provided,  however, that, following a Change in Control, the Board may not amend,
suspend or terminate this Plan in any manner that impairs the rights of
participants without the consent of all Employees then subject to the Plan. 

SECTION
11.    ADMINISTRATION    

        The
Plan shall be administered by either the Board or the person(s) appointed by the Board from time to time to administer the Plan (in either case, the "Administrator"). The
Administrator shall have the full power, authority and discretion to interpret the terms and provisions of the Plan, to make all determinations it deems advisable for the administration of the Plan,
to decide all disputes arising in connection with the Plan and to otherwise supervise the administration of the Plan, provided however that all determinants of whether a Change in Control Event has
occurred shall be made by the Board. All decisions and interpretations of the Administrator shall be binding on all persons. 

SECTION
12.    GOVERNING LAW.    

        This
Plan shall be governed by the laws of the United States to the extent applicable and otherwise by the laws of the Commonwealth of Massachusetts, excluding the choice of law rules
thereof. 

SECTION
13.    SEVERABILITY.    

        If
any part of any provision of this Plan shall be invalid or unenforceable under applicable law, such part shall be ineffective to the extent of such invalidity or unenforceability
only, without in any way affecting the remaining parts of such provision or the remaining provisions of this Plan. 

SECTION
14.    DISCLAIMER OF RIGHTS.    

        No
provision in this Plan shall be construed to confer upon any individual the right to remain in the employ or service of the Company, Danversbank or any related entities, or to
interfere in any way with any contractual or other right or authority of the Company or Danversbank either to increase or decrease the compensation or other payments to any individual at any time, or
to terminate any employment or other relationship between any individual and the Company, Danversbank or any related entities. The obligation of Danversbank to pay any benefits pursuant to this Plan
shall be interpreted as a contractual obligation to pay only those amounts described herein, in the manner and under the conditions prescribed herein. The Plan shall in no way be interpreted to
require the Company or Danversbank to transfer any amounts to a third party trustee or otherwise hold any amounts in trust or escrow for payment to any participant or beneficiary under the terms of
the Plan. 

5

 

SECTION
15.    CAPTIONS.    

        The
use of captions in this Plan is for the convenience of reference only and shall not affect the meaning of any provision of this Plan. 

SECTION
16.    NUMBER AND GENDER.    

        With
respect to words used in this Plan, the singular form shall include the plural form, the masculine gender shall include the feminine gender, etc., as the context requires. 

SECTION
17.    SECTION 409A.    

        It
is the intention of the parties that payments or benefits payable under this Plan not be subject to the additional tax imposed pursuant to Section 409A of the Code. To the
extent such potential payments or benefits could become subject to such Section, the parties shall cooperate to amend this Plan with the goal of giving the Employees the economic benefits described
herein in a manner that does not result in such tax being imposed. 

*
* * * * 

        This
Plan was duly adopted and approved by the Board of Directors of Danvers Bancorp, Inc. on the    day
of                        , 2007. 

	 	 	
 Secretary of the Meeting

6

 
 
 

Schedule A
  EMPLOYEES    
    

        If an Employee is entitled to payments following a Change in Control pursuant to the Plan, the amount shall be determined pursuant to the following table: 

	Position/Title
 
	 	Severance Per

Year of Service
	 	Minimum

Severance
	 	Maximum

Severance

	Senior Vice President	 	Four (4) weeks of Base Pay	 	Four (4) weeks of Base Pay	 	52 weeks of Base Pay
	First Vice President	 	Three (3) weeks of Base Pay	 	Four (4) weeks of Base Pay	 	52 weeks of Base Pay
	All other Employees	 	Two (2) weeks of Base Pay	 	Four (4) weeks of Base Pay	 	52 weeks of Base Pay

7

 
 
 

Schedule B
  WAIVER AND RELEASE AGREEMENT    
    

        THIS WAIVER AND RELEASE AGREEMENT is entered into as
of                        , 200            (the "Effective Date"),
by                        (the "Employee") in
consideration of the severance payments provided to the Employee by Danvers Bancorp, Inc. (the "Company") and/or Danversbank ("Danversbank") pursuant to the Danvers Bancorp, Inc. Change
in Control Severance Pay Plan (the "Severance Payment"). 

        1.    Waiver and Release.    The Employee, on his or her own behalf and on behalf of his or her heirs, executors,
administrators, attorneys and assigns, hereby unconditionally and irrevocably releases, waives and forever discharges the Company, Danversbank and each of their affiliates, parents, successors,
predecessors, and the subsidiaries, directors, owners, members, shareholders, officers, agents, and
employees of the Company, Danversbank and their affiliates, parents, successors, predecessors, and subsidiaries (collectively, all of the foregoing are referred to as the "Employer"), from any and all
causes of action, claims and damages, including attorneys' fees, whether known or unknown, foreseen or unforeseen, presently asserted or otherwise arising through the date of his or her signing of the
Waiver and Release Agreement, concerning his or her employment or separation from employment. This release includes, but is not limited to, any claim or entitlement to salary, bonuses, any other
payments, benefits or damages arising under any federal law (including, but not limited to, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Employee Retirement
Income Security Act of 1974, the Americans with Disabilities Act, Executive Order 11246, the Family and Medical Leave Act, and the Worker Adjustment and Retraining Notification Act, each as amended);
any claim arising under any state or local laws, ordinances or regulations (including, but not limited to, any state or local laws, ordinances or regulations requiring that advance notice be given of
certain workforce reductions); and any claim arising under any common law principle or public policy, including, but not limited to, all suits in tort or contract, such as wrongful termination,
defamation, emotional distress, invasion of privacy or loss of consortium. 

        The
Employee understands that by signing this Waiver and Release Agreement he or she is not waiving any claims or administrative charges which cannot be waived by law. He or she is
waiving, however, any right to monetary recovery or individual relief should any federal, state or local agency (including the Equal Employment Opportunity Commission) pursue any claim on his or her
behalf arising out of or related to his or her employment with and/or separation from employment with Danversbank. 

        The
Employee further agrees without any reservation whatsoever, never to sue the Employer or become a party to a lawsuit on the basis of any and all claims of any type lawfully and
validly released in this Waiver and Release Agreement. 

        2.    Acknowledgments.    The Employee is signing this Waiver and Release Agreement knowingly and voluntarily. He or
she acknowledges that: 

        (a)   He
or she is hereby advised in writing to consult an attorney before signing this Waiver and Release Agreement; 

        (b)   He
or she has relied solely on his or her own judgment and/or that of his or her attorney regarding the consideration for and the terms of this Waiver and Release
Agreement and is signing this Waiver and Release Agreement knowingly and voluntarily of his or her own free will; 

        (c)   He
or she is not entitled to the Severance Payment unless he or she agrees to and honors the terms of this Waiver and Release Agreement; 

8

 

        (d)   He
or she has been given at least [twenty-one (21)] [forty-five (45)] calendar days to consider
this Waiver and Release Agreement, or he or she expressly waives his or her right to have at least [twenty-one (21)] [forty-five
(45)] days to consider this Waiver and Release Agreement; 

        (e)   He
or she may revoke this Waiver and Release Agreement within seven (7) calendar days after signing it by submitting a written notice of revocation to the
Employer. He or she further understands that this Waiver and Release Agreement is not effective or enforceable until after the seven (7) day period of revocation has expired without revocation,
and that if he or she revokes this Waiver and Release Agreement within the seven (7) day revocation period, he or she will not receive the Severance Payment; 

        (f)    He
or she has read and understands the Waiver and Release Agreement and further understands that it includes a general release of any and all known and unknown, foreseen
or unforeseen claims presently asserted or otherwise arising through the date of his or her signing of this Waiver and Release Agreement that he or she may have against the Employer; and 

        (g)   No
statements made or conduct by the Employer has in any way coerced or unduly influenced him or her to execute this Waiver and Release Agreement. 

        3.    No Admission of Liability.    This Waiver and Release Agreement does not constitute an admission of liability or
wrongdoing on the part of the Employer, the Employer does not admit there has been any wrongdoing whatsoever against the Employee, and the Employer expressly denies that any wrongdoing has occurred. 

        4.    Entire Agreement.    There are no other agreements of any nature between the Employer and the Employee with
respect to the matters discussed in this Waiver and Release Agreement, except as expressly stated herein, and in signing this Waiver and Release Agreement, the Employee is not relying on any
agreements or representations, except those expressly contained in this Waiver and Release Agreement. 

        5.    Execution.    It is not necessary that the Employer sign this Waiver and Release Agreement following the
Employee's full and complete execution of it for it to become fully effective and enforceable. 

        6.    Severability.    If any provision of this Waiver and Release Agreement is found, held or deemed by a court of
competent jurisdiction to be void, unlawful or unenforceable under any applicable statute or controlling law, the remainder of this Waiver and Release Agreement shall continue in full force and
effect. 

        7.    Governing Law.    This Waiver and Release Agreement shall be governed by the laws of the Commonwealth of
Massachusetts, excluding the choice of law rules thereof. 

        8.    Headings.    Section and subsection headings contained in this Waiver and Release Agreement are inserted for the
convenience of reference only. Section and subsection headings shall not be deemed to be a part of this Waiver and Release Agreement for any purpose, and they shall not in any way define or affect the
meaning, construction or scope of any of the provisions hereof. 

        IN
WITNESS WHEREOF, the undersigned has duly executed this Agreement as of the day and year first herein above written. 

	 	 	EMPLOYEE:
	

 	
 	

9

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EXHIBIT 10.15  

 
 

DANVERS BANCORP, INC.
  
    2008 STOCK OPTION AND INCENTIVE PLAN    
    

SECTION
1.    GENERAL PURPOSE OF THE PLAN; DEFINITIONS    

        The
name of the plan is the Danvers Bancorp, Inc. 2008 Stock Option and Incentive Plan (the "Plan"). The purpose of the Plan is to encourage and enable the officers, employees,
Non-Employee Directors and other key persons (including consultants and prospective employees) of Danvers Bancorp, Inc. (the "Company") and its Subsidiaries upon whose judgment,
initiative and efforts the Company largely depends for the successful conduct of its business to acquire a proprietary interest in the Company. It is anticipated that providing such persons with a
direct stake in the Company's welfare will assure a closer identification of their interests with those of the Company and its stockholders, thereby stimulating their efforts on the Company's behalf
and strengthening their desire to remain with the Company. 

        The
following terms shall be defined as set forth below: 

        "Act" means the Securities Act of 1933, as amended, and the rules and regulations thereunder. 

        "Administrator" means the compensation committee of the Board which is comprised of not less than two Non-Employee Directors,
each of whom qualifies as an "outside director" within the meaning of Section 162(m) of the Code and a "non-employee director" within the meaning of Rule 16b-3 of
the Exchange Act. 

        "Award" or "Awards," except where referring to a particular category of grant under the
Plan, shall include Incentive Stock Options, Non-Qualified Stock Options and Restricted Stock Awards. 

        "Award Agreement" means a written or electronic agreement setting forth the terms and provisions applicable to an Award granted under the
Plan. Each Award Agreement is subject to the terms and conditions of the Plan. 

        "Board" means the Board of Directors of the Company. 

        "Code" means the Internal Revenue Code of 1986, as amended, and any successor Code, and related rules, regulations and interpretations. 

        "Covered Employee" means an employee who is a "Covered Employee" within the meaning of Section 162(m) of the Code. 

        "Disability" means a condition of total incapacity, mental or physical, for further performance of duty with the Company and/or its
subsidiaries which the Administrator shall have determined, on the basis of competent medical evidence, is likely to be permanent. 

        "Effective Date" means the date on which the Plan is approved by stockholders as set forth in Section 14. 

        "Exchange Act" means the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder. 

        "Fair Market Value" of the Stock on any given date means the closing price of the Stock as reported on the National Association of
Securities Dealers Automated Quotation System ("NASDAQ"), NASDAQ Global Market or another national securities exchange. If there is no trading on such date, the determination shall be made by
reference to the closing price of the Stock on the last date preceding such date on which the Stock was traded. 

        "Incentive Stock Option" means any Stock Option designated and qualified as an "incentive stock option" as defined in Section 422
of the Code. 

 

        "Non-Employee Director" means a member of the Board who is not also an employee of the Company or any Subsidiary. 

        "Non-Qualified Stock Option" means any Stock Option that is not an Incentive Stock Option. 

        "Option" or "Stock Option" means any option to purchase shares of Stock granted pursuant
to Section 5. 

        "Restricted Stock Award" means an Award entitling the recipient to acquire, at such purchase price (which may be zero) as determined by
the Administrator, shares of Stock subject to such restrictions and conditions as the Administrator may determine at the time of grant. 

        "Sale Event" shall mean (i) the sale of all or substantially all of the assets of the Company on a consolidated basis to an
unrelated person or entity, (ii) a merger, reorganization or consolidation in which the outstanding shares of Stock are converted into or exchanged for securities of the successor entity and
the holders of the Company's outstanding voting power immediately prior to such transaction do not own a majority of the outstanding voting power of the successor entity immediately upon completion of
such transaction, or (iii) the sale of all of the Stock of the Company to an unrelated person or entity. 

        "Sale Price" means the value as determined by the Administrator of the consideration payable, or otherwise to be received by stockholders,
per share of Stock pursuant to a Sale Event. 

        "Section 409A" means Section 409A of the Code and the regulations and other guidance promulgated thereunder. 

        "Stock" means the Common Stock, par value $1.00 per share, of the Company, subject to adjustments pursuant to Section 3. 

        "Subsidiary" means any corporation or other entity (other than the Company) in which the Company has at least a 50 percent
interest, either directly or indirectly. 

        "Ten Percent Owner" means an employee who owns or is deemed to own (by reason of the attribution rules of Section 424(d) of the
Code) more than 10 percent of the combined voting power of all classes of stock of the Company or any parent or subsidiary corporation. 

SECTION
2.    ADMINISTRATION OF PLAN; ADMINISTRATOR AUTHORITY TO SELECT GRANTEES AND

                        DETERMINE AWARDS    

        (a)    Administration of Plan.    The Plan shall be administered by the Administrator. 

        (b)    Powers of Administrator.    The Administrator shall have the power and authority to grant Awards consistent
with the terms of the Plan, including the power and authority: 

        (i)    to
select the individuals to whom Awards may from time to time be granted; 

        (ii)   to
determine the time or times of grant, and the extent, if any, of Incentive Stock Options, Non-Qualified Stock Options and Restricted Stock Awards, or any
combination of the foregoing, granted to any one or more grantees; 

        (iii)  to
determine the number of shares of Stock to be covered by any Award; 

        (iv)  to
determine and modify from time to time the terms and conditions, including restrictions, not inconsistent with the terms of the Plan, of any Award, which terms and
conditions may differ among individual Awards and grantees, and to approve the form of written instruments evidencing the Awards; 

        (v)   subject
to the terms of the Plan, to accelerate at any time the exercisability or vesting of all or any portion of any Award; 

2

 

        (vi)  subject
to the provisions of Section 5(c), to extend at any time the period in which Stock Options may be exercised; and 

        (vii) at
any time to adopt, alter and repeal such rules, guidelines and practices for administration of the Plan and for its own acts and proceedings as it shall deem
advisable; to interpret the terms and provisions of the Plan and any Award (including related written instruments); to make all determinations it deems advisable for the administration of the Plan; to
decide all disputes arising in connection with the Plan; and to otherwise supervise the administration of the Plan. 

        All
decisions and interpretations of the Administrator shall be binding on all persons, including the Company and Plan grantees. 

        (c)    Delegation of Authority to Grant Options.    Subject to applicable law, the Administrator, in its discretion,
may delegate to the Chief Executive Officer of the Company all or part of the Administrator's authority and duties with respect to the granting of Options, to individuals who are (i) not
subject to the reporting and other provisions of Section 16 of the Exchange Act and (ii) not Covered Employees. Any such delegation by the Administrator shall include a limitation as to
the amount of Options that may be granted during the period of the delegation and shall contain guidelines as to the determination of the exercise price and the vesting criteria. The Administrator may
revoke or amend the terms of a delegation at any time but such action shall not invalidate any prior actions of the Administrator's delegate or delegates that were consistent with the terms of the
Plan. 

        (d)    Award Agreement.    Awards under the Plan shall be evidenced by Award Agreements that set forth the terms,
conditions and limitations for each Award which may include, without limitation, the term of an Award, the provisions applicable in the event employment or service terminates, and the Company's
authority to unilaterally or bilaterally amend, modify, suspend, cancel or rescind an Award. 

        (e)    Indemnification.    Neither the Board nor the Administrator, nor any member of either or any delegate thereof,
shall be liable for any act, omission, interpretation, construction or determination made in good faith in connection with the Plan, and the members of the Board and the Administrator (and any
delegate thereof) shall be entitled in all cases to indemnification and reimbursement by the Company in respect of any claim, loss, damage or expense (including, without limitation, reasonable
attorneys' fees) arising or resulting therefrom to the fullest extent permitted by law and/or under the Company's
articles or bylaws or any directors' and officers' liability insurance coverage which may be in effect from time to time and/or any indemnification agreement between such individual and the Company. 

SECTION
3.    STOCK ISSUABLE UNDER THE PLAN; MERGERS; SUBSTITUTION    

        (a)    Stock Issuable.    The maximum number of shares of Stock reserved and available for issuance under the Plan
subject to adjustment as provided in Section 3(c) shall be                        shares (which number equals 14 percent
of the aggregate number of shares of Stock issued by the Company in
connection with its conversion from mutual to stock form, including shares contributed to The Danversbank Charitable Foundation, Inc. ("Conversion Shares")). Of this amount, the maximum number
of shares which may be issued under Restricted Stock Awards is                        (which number equals 4 percent of the
aggregate number of Conversion Shares), and the maximum number of shares
which may be issued in the form of Options is                        (which number equals 10 percent of the aggregate number
of Conversion Shares). For purposes of this limitation, the shares of Stock
underlying any Awards that are forfeited, canceled, held back upon exercise of an Option or settlement of an Award to cover the exercise price or tax withholding, reacquired by the Company prior to
vesting, satisfied without the issuance of Stock or otherwise terminated (other than by exercise) shall be added back to the shares of Stock available for issuance under the Plan. The shares available
for issuance under the Plan may be authorized but unissued shares of Stock or shares of Stock reacquired by the Company. 

3

 

        (b)    Limitations on Size of Grants.    

        (i)    Options
with respect to no more than                        shares of Stock [insert a number equal to
30 percent of reserved shares
for options] (subject to adjustment pursuant to Section 3(c)) may be granted to Non-Employee Directors in the aggregate, and Options with respect
to no more than                        shares of Stock [insert a number equal to 5 percent of reserved
shares for options]
(subject to adjustment pursuant to Section 3(c)) may be granted to any one individual Non-Employee Director. 

        (ii)   Options
with respect to no more than                        shares of Stock [insert a number equal to
25 percent of reserved shares
for options] (subject to adjustment pursuant to Section 3(c)) may be granted to any one individual employee. 

        (iii)  Options
with respect to no more than                        shares of Stock [insert same number as
(ii) above] (subject to adjustment pursuant to Section 3(c)) may be granted to any one individual employee in any one calendar year. 

        (iv)  No
more than                        shares of Stock [insert number of reserved shares for options]

(subject to adjustment pursuant to Section 3(c)) shall be issued in the form of Incentive Stock Options. 

        (v)   Restricted
Stock Awards with respect to no more than                        shares of Stock [insert a number equal to
30 percent of
reserved shares for restricted stock] (subject to adjustment pursuant to Section 3(c)) may be granted to Non-Employee Directors in the aggregate
and Restricted Stock Awards with respect to no more than                        shares of Stock [insert a
number equal to 5 percent of reserved shares for
restricted stock] (subject to adjustment pursuant to Section 3(c)) may be granted to any one individual Non-Employee Director. 

        (vi)  Restricted
Stock Awards with respect to no more than                        shares of Stock [insert a number equal to
25 percent of
reserved shares for restricted stock] (subject to adjustment pursuant to Section 3(c)) may be granted to any one individual employee. 

        (c)    Changes in Stock.    Subject to Section 3(d) hereof, if, as a result of any reorganization,
recapitalization, reclassification, stock dividend, stock split, reverse stock split or other similar change in the Company's capital stock, the outstanding shares of Stock are increased or decreased
or are exchanged for a different number or kind of shares or other securities of the Company, or additional shares or new or different shares or other securities of the Company or other
non-cash assets are distributed with respect to such shares of Stock or other securities, or, if, as a result of any merger or consolidation, sale of all or substantially all of the assets
of the Company, the outstanding shares of Stock are converted into or exchanged for securities of the Company or any successor entity (or a parent or subsidiary thereof), the Administrator shall make
an appropriate or proportionate adjustment in (i) the maximum number of shares reserved for issuance under the Plan, including the limitations set forth in Section 3(b) above),
(ii) the number and kind of shares or other securities subject to any then outstanding Awards under the Plan, (iii) the repurchase price, if any, per share subject to each outstanding
Restricted Stock Award, and (iv) the price for each share subject to any then outstanding Stock Options under the Plan, without changing the aggregate exercise price (i.e., the exercise price
multiplied by the number of Stock Options) as to which such Stock Options remain exercisable. The Administrator shall also make equitable or proportionate adjustments in the number of shares subject
to outstanding Awards and the exercise price and the terms of outstanding Awards to take into consideration cash dividends paid other than in the ordinary course or any other extraordinary corporate
event. The adjustment by the Administrator shall be final, binding and conclusive. No fractional shares of Stock shall be issued under the Plan resulting from any such adjustment, but the
Administrator in its discretion may make a cash payment in lieu of fractional shares. 

4

 

        (d)    Mergers and Other Transactions.    Except as the Administrator may otherwise specify with respect to particular
Awards in the relevant Award documentation, in the case of and subject to the consummation of a Sale Event, all Options that are not exercisable immediately prior to the effective
time of the Sale Event shall become fully exercisable as of the effective time of the Sale Event and all Restricted Stock Awards shall become fully vested and nonforfeitable as of the effective time
of the Sale Event. Upon the effective time of the Sale Event, the Plan and all outstanding Awards granted hereunder shall terminate, unless provision is made in connection with the Sale Event in the
sole discretion of the parties thereto for the assumption or continuation of Awards theretofore granted by the successor entity, or the substitution of such Awards with new Awards of the successor
entity or parent thereof, with appropriate adjustment as to the number and kind of shares and, if appropriate, the per share exercise prices, as such parties shall agree (after taking into account any
acceleration hereunder). In the event of such termination, (i) the Company shall have the option (in its sole discretion) to make or provide for a cash payment to the grantees holding Options,
in exchange for the cancellation thereof, in an amount equal to the difference between (A) the Sale Price multiplied by the number of shares of Stock subject to outstanding Options (to the
extent then exercisable (after taking into account any acceleration hereunder) at prices not in excess of the Sale Price) and (B) the aggregate exercise price of all such outstanding Options;
or (ii) each grantee shall be permitted, within a specified period of time prior to the consummation of the Sale Event as determined by the Administrator, to exercise all outstanding Options
held by such grantee. 

        (e)    Substitute Awards.    The Administrator may grant Awards under the Plan in substitution for stock and stock
based awards held by employees, directors or other key persons of another corporation in connection with the merger or consolidation of the employing corporation with the Company or a Subsidiary or
the acquisition by the Company or a Subsidiary of property or stock of the employing corporation. The Administrator may direct that the substitute awards be granted on such terms and conditions as the
Administrator considers appropriate in the circumstances. Any substitute Awards granted under the Plan shall not count against the share limitation set forth in Section 3(a). 

SECTION
4.    ELIGIBILITY    

        Grantees
under the Plan will be such full or part-time officers and other employees and Non-Employee Directors of the Company and its Subsidiaries as are selected
from time to time by the Administrator in its sole discretion. 

SECTION
5.    STOCK OPTIONS    

        (a)    Stock Option Grants.    Any Stock Option granted under the Plan shall be in such form as the Administrator may
from time to time approve. Stock Options granted under the Plan may be either Incentive Stock Options or Non-Qualified Stock Options. Incentive Stock Options may be granted only to
employees of the Company or any Subsidiary that is a "subsidiary corporation" within the meaning of Section 424(f) of the Code. To the extent that any Option does not qualify as an Incentive
Stock Option, it shall be deemed a Non-Qualified Stock Option. Stock Options granted pursuant to this Section 5(a) shall be subject to the following terms and conditions and shall
contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Administrator shall deem desirable. 

        (b)    Exercise Price.    The exercise price per share for the Stock covered by a Stock Option granted pursuant to
this Section 5(a) shall be determined by the Administrator at the time of grant but shall not be less than 100 percent of the Fair Market Value on the date of grant. In the case of an
Incentive Stock Option that is granted to a Ten Percent Owner, the option price of such Incentive Stock Option shall be not less than 110 percent of the Fair Market Value on the grant date. 

        (c)    Option Term.    The term of each Stock Option shall be fixed by the Administrator, but no Stock Option shall be
exercisable more than ten years after the date the Stock Option is granted. In 

5

 

the
case of an Incentive Stock Option that is granted to a Ten Percent Owner, the term of such Stock Option shall be no more than five years from the date of grant. 

        (d)    Exercisability; Rights of a Stockholder.    Stock Options shall become exercisable at such time or times,
whether or not in installments, as shall be determined by the Administrator at or after the grant date; provided, however, the rate of vesting shall not be in excess of 20 percent per year,
with the first vesting occurring no earlier than the first anniversary of the grant date. The Administrator may not accelerate the exercisability of all or any portion of any Stock Option, except in
the case of a Sale Event or upon the death or Disability of the grantee. An optionee shall have the rights of a stockholder only as to shares acquired upon the exercise of a Stock Option and not as to
unexercised Stock Options. 

        (e)    Method of Exercise.    Stock Options may be exercised in whole or in part, by giving written notice of exercise
to the Company, specifying the number of shares to be purchased. Payment of the purchase price may be made by one or more of the following methods to the extent provided in the Option Award Agreement: 

        (i)    In
cash, by certified or bank check or other instrument acceptable to the Administrator; 

        (ii)   Through
the delivery (or attestation to the ownership) of shares of Stock that have been purchased by the optionee on the open market or that are beneficially owned by
the optionee and are not then subject to restrictions under any Company plan. Such surrendered shares shall be valued at Fair Market Value on the exercise date. To the extent required to avoid
variable accounting treatment under FAS 123R or other applicable accounting rules, such surrendered shares shall have been owned by the optionee for at least six months; or 

        (iii)  By
the optionee delivering to the Company a properly executed exercise notice together with irrevocable instructions to a broker to promptly deliver to the Company
cash or a check payable and acceptable to the Company for the purchase price; provided that in the event the optionee chooses to pay the purchase price as so provided, the optionee and the broker
shall comply with such procedures
and enter into such agreements of indemnity and other agreements as the Administrator shall prescribe as a condition of such payment procedure. 

        Payment
instruments will be received subject to collection. The transfer to the optionee on the records of the Company or of the transfer agent of the shares of Stock to be purchased
pursuant to the exercise of a Stock Option will be contingent upon receipt from the optionee (or a purchaser acting in his stead in accordance with the provisions of the Stock Option) by the Company
of the full purchase price for such shares and the fulfillment of any other requirements contained in the Option Award Agreement or applicable provisions of laws (including the satisfaction of any
withholding taxes that the Company is obligated to withhold with respect to the optionee). In the event an optionee chooses to pay the purchase price by previously-owned shares of Stock through the
attestation method, the number of shares of Stock transferred to the optionee upon the exercise of the Stock Option shall be net of the number of attested shares. In the event that the Company
establishes, for itself or using the services of a third party, an automated system for the exercise of Stock Options, such as a system using an internet website or interactive voice response, then
the paperless exercise of Stock Options may be permitted through the use of such an automated system. 

        (f)    Annual Limit on Incentive Stock Options.    To the extent required for "incentive stock option" treatment under
Section 422 of the Code, the aggregate Fair Market Value (determined as of the time of grant) of the shares of Stock with respect to which Incentive Stock Options granted under this Plan and
any other plan of the Company or its parent and subsidiary corporations become exercisable for the first time by an optionee during any calendar year shall not exceed $100,000. To the extent that any
Stock Option exceeds this limit, it shall constitute a Non-Qualified Stock Option. 

6

 

SECTION
6.    RESTRICTED STOCK AWARDS    

        (a)    Nature of Restricted Stock Awards.    The Administrator shall determine the restrictions and conditions
applicable to each Restricted Stock Award at the time of grant. Conditions may be based on continuing employment (or other service relationship) and/or achievement of pre-established
performance goals and objectives. The grant of a Restricted Stock Award is contingent on the grantee executing the Restricted Stock Award Agreement. The terms and conditions of each such Award
Agreement shall be determined by the Administrator, and such terms and conditions may differ among individual Awards and grantees. 

        (b)    Rights as a Stockholder.    Upon execution of the Restricted Stock Award Agreement and payment of any
applicable purchase price, a grantee shall have the rights of a stockholder with respect to the voting of the Restricted Stock, subject to such conditions contained in the Restricted Stock Award
Agreement. Unless the Administrator shall otherwise determine, (i) uncertificated Restricted Stock shall be accompanied by a notation on the records of the Company or the transfer agent to the
effect that they are subject to forfeiture until such Restricted Stock are vested as provided in Section 6(d) below, and
(ii) certificated Restricted Stock shall remain in the possession of the Company until such Restricted Stock is vested as provided in Section 6(d) below, and the grantee shall be
required, as a condition of the grant, to deliver to the Company such instruments of transfer as the Administrator may prescribe. 

        (c)    Restrictions.    Restricted Stock may not be sold, assigned, transferred, pledged or otherwise encumbered or
disposed of except as specifically provided herein or in the Restricted Stock Award Agreement. Except in the case of a Sale Event or upon the death or Disability of the grantee, if a grantee's
employment (or other service relationship) with the Company and its Subsidiaries terminates for any reason, any Restricted Stock that has not vested at the time of termination shall automatically and
without any requirement of notice to such grantee from or other action by or on behalf of, the Company be deemed to have been reacquired by the Company at its original purchase price (if any) from
such grantee or such grantee's legal representative simultaneously with such termination of employment (or other service relationship), and thereafter shall cease to represent any ownership of the
Company by the grantee or rights of the grantee as a stockholder. Following such deemed reacquisition of unvested Restricted Stock that are represented by physical certificates, a grantee shall
surrender such certificates to the Company upon request without consideration. 

        (d)    Vesting of Restricted Stock.    The Administrator at the time of grant shall specify the date or dates and/or
the attainment of pre-established performance goals, objectives and other conditions on which the non-transferability of the Restricted Stock and the Company's right of
repurchase or forfeiture shall lapse; provided, however, the rate of lapse of forfeiture shall not be in excess of 20 percent per year, with the first lapse of forfeiture occurring no earlier
than the first anniversary of the grant date. Subsequent to such date or dates and/or the attainment of such pre-established performance goals, objectives and other conditions, the shares
on which all restrictions have lapsed shall no longer be Restricted Stock and shall be deemed "vested." Except in the case of a Sale Event or upon the death or Disability of the grantee, a grantee's
rights in any shares of Restricted Stock that have not vested shall automatically terminate upon the grantee's termination of employment (or other service relationship) with the Company and its
Subsidiaries and such shares shall be subject to the provisions of Section 6(c) above. 

SECTION
7.    TRANSFERABILITY OF AWARDS    

        (a)    Transferability.    Except as provided in Section 7(b) below, during a grantee's lifetime, his or her
Awards shall be exercisable only by the grantee, or by the grantee's legal representative or guardian in the event of the grantee's incapacity. No Awards shall be sold, assigned, transferred or
otherwise encumbered or disposed of by a grantee other than by will or by the laws of descent and distribution. No Awards shall be subject, in whole or in part, to attachment, execution, or levy of
any kind, and any purported transfer in violation hereof shall be null and void. 

7

 

        (b)    Administrator Action.    Notwithstanding Section 7(a), the Administrator, in its discretion, may provide
either in the Award Agreement regarding a given Award or by subsequent written approval that the grantee may transfer his or her Awards (other than any Incentive Stock Options) to his or her immediate
family members, to trusts for the benefit of such family members, or to partnerships in which such family members are the only partners, provided that the transferee agrees in writing with the Company
to be bound by all of the terms and conditions of this Plan and the applicable Award. 

        (c)    Family Member.    For purposes of Section 7(b), "family member" shall mean a grantee's child, stepchild,
grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, any
person sharing the grantee's household (other than a tenant of the grantee), a trust in which these persons (or the grantee) have more than 50 percent of the beneficial interest, a foundation
in which these persons (or the grantee) control the management of assets, and any other entity in which these persons (or the grantee) own more than 50 percent of the voting interests. 

        (d)    Designation of Beneficiary.    Each grantee to whom an Award has been made under the Plan may designate a
beneficiary or beneficiaries to exercise any Award or receive any payment under any Award payable on or after the grantee's death. Any such designation shall be on a form provided for that purpose by
the Administrator and shall not be effective until received by the Administrator. If no beneficiary has been designated by a deceased grantee, or if the designated beneficiaries have predeceased the
grantee, the beneficiary shall be the grantee's estate. 

SECTION
8.    TAX WITHHOLDING    

        (a)    Payment by Grantee.    Each grantee shall, no later than the date as of which the value of an Award or of any
Stock or other amounts received thereunder first becomes includable in the gross income of the grantee for Federal income tax purposes, pay to the Company, or make arrangements satisfactory to the
Administrator regarding payment of, any Federal, state, or local taxes of any kind required by law to be withheld by the Company with respect to such income. The Company and its Subsidiaries shall, to
the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the grantee. The Company's obligation to deliver evidence of book entry (or stock
certificates) to any grantee is subject to and conditioned on tax withholding obligations being satisfied by the grantee. 

        (b)    Payment in Stock.    Subject to approval by the Administrator, a grantee may elect to have the Company's
minimum required tax withholding obligation satisfied, in whole or in part, by authorizing the Company to withhold from shares of Stock to be issued pursuant to any Award a number of shares with an
aggregate Fair Market Value (as of the date the withholding is effected) that would satisfy the withholding amount due. 

SECTION
9.    SECTION 409A AWARDS.    

        To
the extent that any Award is determined to constitute "nonqualified deferred compensation" within the meaning of Section 409A (a "409A Award"), the Award shall be subject to
such additional rules and requirements as specified by the Administrator from time to time in order to comply with Section 409A. In this regard, if any amount under a 409A Award is payable upon
a "separation from service" (within the meaning of Section 409A) to a grantee who is then considered a "specified employee" (within the meaning of Section 409A), then no such payment
shall be made prior to the date that is the earlier of (i) six months and one day after the grantee's separation from service, or (ii) the grantee's death, but only to the extent such
delay is necessary to prevent such payment from being subject to interest, penalties and/or additional tax imposed pursuant to Section 409A. Further, the settlement of any such Award may not be
accelerated except to the extent permitted by Section 409A. 

8

 

SECTION
10.    TRANSFER, LEAVE OF ABSENCE, ETC.    

        For
purposes of the Plan, the following events shall not be deemed a termination of employment: 

        (a)   a
transfer to the employment of the Company from a Subsidiary or from the Company to a Subsidiary, or from one Subsidiary to another; or 

        (b)   an
approved leave of absence for military service or sickness, or for any other purpose approved by the Company, if the employee's right to re-employment is
guaranteed either by a statute or by contract or under the policy pursuant to which the leave of absence was granted or if the Administrator otherwise so provides in writing. 

SECTION
11.    AMENDMENTS AND TERMINATION    

        The
Board may, at any time, amend or discontinue the Plan and the Administrator may, at any time, amend or cancel any outstanding Award for the purpose of satisfying changes in law or
for any other lawful purpose, but no such action shall adversely affect rights under any outstanding Award without the holder's consent. Except as provided in Section 3(c) or 3(d), in no event
may the Administrator exercise its discretion to reduce the exercise price of outstanding Stock Options or effect repricing through cancellation and re-grants. To the extent required under
the rules of any securities exchange or market system on which the Stock is listed, to the extent determined by the Administrator to be required by the Code to ensure that Incentive Stock Options
granted under the Plan are qualified under Section 422 of the Code, or to ensure that compensation earned under Awards qualifies as performance-based compensation under Section 162(m) of
the Code, Plan amendments shall be subject to approval by the Company stockholders entitled to vote at a meeting of stockholders.
Nothing in this Section 11 shall limit the Administrator's authority to take any action permitted pursuant to Section 3(d). 

SECTION
12.    STATUS OF PLAN    

        With
respect to the portion of any Award that has not been exercised and any payments in cash, Stock or other consideration not received by a grantee, a grantee shall have no rights
greater than those of a general creditor of the Company unless the Administrator shall otherwise expressly determine in connection with any Award or Awards. In its sole discretion, the Administrator
may authorize the creation of trusts or other arrangements to meet the Company's obligations to deliver Stock or make payments with respect to Awards hereunder, provided that the existence of such
trusts or other arrangements is consistent with the foregoing sentence. 

SECTION
13.    GENERAL PROVISIONS    

        (a)    No Distribution.    The Administrator may require each person acquiring Stock pursuant to an Award to represent
to and agree with the Company in writing that such person is acquiring the shares without a view to distribution thereof. 

        (b)    Delivery of Stock Certificates.    Stock certificates to grantees under this Plan shall be deemed delivered for
all purposes when the Company or a stock transfer agent of the Company shall have mailed such certificates in the United States mail, addressed to the grantee, at the grantee's last known address on
file with the Company. Uncertificated Stock shall be deemed delivered for all purposes when the Company or a Stock transfer agent of the Company shall have given to the grantee by electronic mail
(with proof of receipt) or by United States mail, addressed to the grantee, at the grantee's last known address on file with the Company, notice of issuance and recorded the issuance in its records
(which may include electronic "book entry" records). Notwithstanding anything herein to the contrary, the Company shall not be required to issue or deliver any certificates evidencing shares of Stock
pursuant to the exercise of any Award, unless and until the Administrator has determined, with advice of counsel (to the extent the Administrator deems such advice necessary or advisable), that the
issuance and delivery of such certificates is in compliance with all applicable laws, regulations of governmental authorities and, if applicable, the requirements of any exchange on which the shares
of Stock are listed, quoted or traded. All Stock certificates delivered pursuant to the Plan shall be subject 

9

 

to
any stop-transfer orders and other restrictions as the Administrator deems necessary or advisable to comply with federal, state or foreign jurisdiction, securities or other laws, rules
and quotation system on which the Stock is listed, quoted or traded. The Administrator may place legends on any Stock certificate to reference restrictions applicable to the Stock. In addition to the
terms and conditions provided herein, the Administrator may require that an individual make such reasonable covenants, agreements, and representations as the Administrator, in its discretion, deems
necessary or advisable in order to comply with any such laws, regulations, or requirements. The Administrator shall have the right to require any individual to comply with any timing or other
restrictions with respect to the settlement or exercise of any Award, including a window-period limitation, as may be imposed in the discretion of the Administrator. 

        (c)    Stockholder Rights.    Until Stock is deemed delivered in accordance with Section 13(b), no right to
vote or receive dividends or any other rights of a stockholder will exist with respect to shares of Stock to be issued in connection with an Award, notwithstanding the exercise of a Stock Option or
any other action by the grantee with respect to an Award. 

        (d)    Other Compensation Arrangements; No Employment Rights.    Nothing contained in this Plan shall prevent the
Board from adopting other or additional compensation arrangements, including trusts, and such arrangements may be either generally applicable or applicable only in specific cases. The adoption of this
Plan and the grant of Awards do not confer upon any employee any right to continued employment with the Company or any Subsidiary. 

        (e)    Trading Policy Restrictions.    Option exercises and other Awards under the Plan shall be subject to such
Company's insider trading policy and procedures, as in effect from time to time. 

        (f)    Forfeiture of Awards under Sarbanes-Oxley Act.    If the Company is required to prepare an accounting
restatement due to the material noncompliance of the Company, as a result of misconduct, with any
financial reporting requirement under the securities laws, then any grantee who is one of the individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002
shall reimburse the Company for the amount of any Award received by such individual under the Plan during the 12-month period following the first public issuance or filing with the United
States Securities and Exchange Commission, as the case may be, of the financial document embodying such financial reporting requirement. 

SECTION
14.    EFFECTIVE DATE OF PLAN    

        This
Plan shall become effective upon approval by the holders of at last two-thirds of the total votes eligible to be cast at a duly called meeting of stockholders of the
Company held no earlier than six months after completion of the Company's conversion from mutual to stock form. No grants of Stock Options and other Awards may be made hereunder prior to the Effective
Date or after the tenth anniversary of the Effective Date and no grants of Incentive Stock Options may be made hereunder after the tenth anniversary of the date the Plan is approved by the Board. 

SECTION
15.    GOVERNING LAW    

        This
Plan and all Awards and actions taken thereunder shall be governed by, and construed in accordance with, the laws of the State of Delaware, applied without regard to conflict of law
principles. 

DATE
APPROVED BY BOARD OF DIRECTORS: 

DATE
APPROVED BY STOCKHOLDERS: 

10

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DANVERS BANCORP, INC. 2008 STOCK OPTION AND INCENTIVE PLAN

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