Document:

EX-10.5

 Exhibit 10.5 

SEVERANCE PAY PLAN 

OF 

RADIUS BANK 

Effective as of [Date] 

 Table of Contents 

 

							
	 	  	 	  	Page	 
		
	 ARTICLE I PURPOSE
	  	 	1	  
			
	 Section 1.1
	  	 Statement of Purpose
	  	 	1	  
	 Section 1.2
	  	 Other Severance Plans, Policies, and Practices Superseded
	  	 	1	  
		
	 ARTICLE II DEFINITIONS
	  	 	1	  
			
	 Section 2.1
	  	 Affiliated Employer
	  	 	1	  
	 Section 2.2
	  	 Bank
	  	 	2	  
	 Section 2.3
	  	 Board
	  	 	2	  
	 Section 2.4
	  	 Cause
	  	 	2	  
	 Section 2.5
	  	 Change of Control
	  	 	2	  
	 Section 2.6
	  	 Code
	  	 	3	  
	 Section 2.7
	  	 Committee
	  	 	3	  
	 Section 2.8
	  	 Company
	  	 	3	  
	 Section 2.9
	  	 Effective Date
	  	 	3	  
	 Section 2.10
	  	 Employee
	  	 	3	  
	 Section 2.11
	  	 ERISA
	  	 	4	  
	 Section 2.12
	  	 Exchange Act
	  	 	4	  
	 Section 2.13
	  	 Involuntary Severance
	  	 	4	  
	 Section 2.14
	  	 Participating Employer
	  	 	4	  
	 Section 2.15
	  	 Plan
	  	 	4	  
	 Section 2.16
	  	 Plan Administrator
	  	 	4	  
	 Section 2.17
	  	 Safe Harbor Amount
	  	 	4	  
	 Section 2.18
	  	 Salary
	  	 	4	  
	 Section 2.19
	  	 Service
	  	 	4	  
		
	 ARTICLE III BENEFIT
	  	 	5	  
			
	 Section 3.1
	  	 Severance Benefit for Employees
	  	 	5	  
	 Section 3.2
	  	 Vesting
	  	 	5	  
	 Section 3.3
	  	 Discretionary Severance Benefit
	  	 	5	  
	 Section 3.4
	  	 Benefit Contingent on Execution of Release
	  	 	5	  
		
	 ARTICLE IV ADMINISTRATION
	  	 	6	  
			
	 Section 4.1
	  	 Named Fiduciaries
	  	 	6	  
	 Section 4.2
	  	 Plan Administrator
	  	 	6	  
	 Section 4.3
	  	 Committee Responsibilities
	  	 	7	  
	 Section 4.4
	  	 Claims Procedure
	  	 	8	  
	 Section 4.5
	  	 Claims Review Procedure
	  	 	8	  
	 Section 4.6
	  	 Allocation of Fiduciary Responsibilities and Employment of Advisors
	  	 	9	  
	 Section 4.7
	  	 Other Administrative Provisions
	  	 	9	  
		
	 ARTICLE V MISCELLANEOUS
	  	 	10	  
			
	 Section 5.1
	  	 Rights of Employees
	  	 	10	  
	 Section 5.2
	  	 Non-alienation of Benefit
	  	 	10	  

  
 i 

 Table of Contents 

(continued) 
  

							
	 	  	 	  	Page	 
			
	 Section 5.3
	  	 Non-duplication of Benefit
	  	 	10	  
	 Section 5.4
	  	 Construction
	  	 	10	  
	 Section 5.5
	  	 Headings
	  	 	10	  
	 Section 5.6
	  	 Governing Law
	  	 	10	  
	 Section 5.7
	  	 Severability
	  	 	11	  
	 Section 5.8
	  	 Termination or Amendment
	  	 	11	  
	 Section 5.9
	  	 Withholding
	  	 	11	  
	 Section 5.10
	  	 Status as Welfare Benefit Plan under ERISA
	  	 	11	  
	 Section 5.11
	  	 Payments to Key Employees
	  	 	11	  
	 Section 5.12
	  	 Involuntary Termination Payments to Employees (Safe Harbor)
	  	 	12	  

  
 ii 

 Exhibit 10.5 

SEVERANCE PAY PLAN 

OF 
 RADIUS
BANK 
 ARTICLE I 

PURPOSE 

Section 1.1 Statement of Purpose. 

(a) The Bank adopts this Severance Pay Plan of Radius Bank for the benefit of its eligible Employees and those of other Participating
Employers. The Bank recognizes that, as a wholly owned subsidiary of a public company, it will be subject to the possibility of a negotiated or unsolicited change of control which may result in a loss of employment for some of its Employees. The
purpose of the Plan is to encourage the Bank’s Employees and those of other Participating Employers to continue working for their employers with their full time and attention devoted to their employer’s affairs by providing a severance
benefit in the event of an Involuntary Severance following a Change of Control. 
 (b) The Bank also recognizes that it may be appropriate
in certain circumstances other than a Change of Control to provide a severance benefit to Employees in the event of an Involuntary Severance, and thus the Plan provides for the payment of a severance benefit in circumstances other than a Change of
Control as determined in the discretion of the Plan Administrator. 
 Section 1.2 Other Severance Plans, Policies, and
Practices Superseded. 
 As of the Effective Date hereof, this Plan supersedes in its entirety any plan, policy, or practice of
the Bank for the provision of the severance benefit to Employees, whether written or oral or formal or informal, and no severance benefit shall be provided to any individual whose employment terminates with the Bank on or after the Effective Date,
except as provided under the terms of the Plan or as provided under the terms of a written, complete, and fully executed employment agreement or change of control agreement specifically providing for the payment of a severance benefit following
termination of employment with the Bank. 
 ARTICLE II  

DEFINITIONS 
 For
purposes of the Plan, the following terms shall have the meanings assigned to them below, unless a different meaning is plainly indicated by the context: 

Section 2.1 Affiliated Employer means the Bank; any corporation which is a member of a controlled group of
corporations (as defined in section 414(b) of the Code) that includes the Bank; any trade or business (whether or not incorporated) that is under common control (as defined in section 414(c) of the Code) with the Bank; any organization (whether or
not incorporated) that is a member of an affiliated service group (as defined in section 414(m) of 

 
the Code) that includes the Bank; any leasing organization (as defined in section 414(n) of the Code) to the extent that any of its employees are required pursuant to section 414(n) of the Code
to be treated as employees of the Bank; and any other entity that is required to be aggregated with the Bank pursuant to regulations under section 414(o) of the Code. 

Section 2.2 Bank means Radius Bank (or its successors or assigns, whether by merger, consolidation, sale of assets,
statutory receivership, operation of law, or otherwise). 
 Section 2.3 Board means the Board of Directors of the
Bank. 
 Section 2.4 Cause means, with respect to the conduct of an Employee in connection with his employment
with any Participating Employer, personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, willful violation of any law, rule, or regulation (other than
traffic violations or similar offenses) or final cease and desist order, in each case as measured against standards generally prevailing at the relevant time in the savings and community banking industry. 

Section 2.5 Change of Control means the occurrence of any of the following events: 

(i) the consummation of a reorganization, merger, or consolidation of the Company with one or more other persons, other than a transaction
following which: 
 (A) at least fifty one percent (51%) of the equity ownership interests of the entity resulting from such
transaction are beneficially owned (within the meaning of Rule 13d-3 promulgated under the Exchange Act) in substantially the same relative proportions by persons who, immediately prior to such transaction, beneficially owned (within the meaning of
Rule 13d-3 promulgated under the Exchange Act) at least fifty one percent (51%) of the outstanding equity ownership interests in the Company; and 

(B) at least fifty one percent (51%) of the securities entitled to vote generally in the election of directors of the entity resulting
from such transaction are beneficially owned (within the meaning of Rule 13d-3 promulgated under the Exchange Act) in substantially the same relative proportions by persons who, immediately prior to such transaction, beneficially owned (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) at least fifty one percent (51%) of the securities entitled to vote generally in the election of directors of the Company; 

(ii) the acquisition of all or substantially all of the assets of the Company or beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of twenty five percent (25%) or more of the outstanding securities of the Company entitled to vote generally in the election of directors by any person or by any persons acting in concert; 

(iii) a complete liquidation or dissolution of the Company; 

  
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 (iv) the occurrence of any event if, immediately following such event, at least fifty percent
(50%) of the members of the board of directors of the Company do not belong to any of the following groups: 
 (A) individuals who
were members of the board of directors of the Company on the Effective Date; or 
 (B) individuals who first became members of the board of
directors of the Company after the Effective Date either: 
 (1) upon election to serve as a member of the board of
directors of the Company by affirmative vote of three-quarters (3/4) of the members of such board, or of a nominating committee thereof, in office at the time of such first election; or 

(2) upon election by the shareholders of the board of directors of the Company to serve as a member of such board, but only if
nominated for election by affirmative vote of three-quarters (3/4) of the members of the board of directors of the Company, or of a nominating committee thereof, in office at the time of such first nomination; 

provided, however, that such individual’s election or nomination did not result from an actual or threatened election
contest or other actual or threatened solicitation of proxies or consents other than by or on behalf of the board of directors of the Company; or 

(v) any event which would be described in Section 2.5(i), (ii), (iii), or (iv) if the term “Bank” were substituted for the
term “Company” therein. 
 In no event, however, shall a Change of Control be deemed to have occurred as a result of any acquisition of securities
or assets of the Company, the Bank, or a subsidiary of either of them, by the Company, the Bank, or any subsidiary of either of them, or by any employee benefit plan maintained by any of them. For purposes of this Section 2.5, the term
“person” shall have the meaning assigned to it under sections 13(d)(3) or 14(d)(2) of the Exchange Act. 
 Section 2.6
Code means the Internal Revenue Code of 1986, as amended (including the corresponding provisions of any succeeding law). 

Section 2.7 Committee means the Compensation Committee described in Section 4.3. 

Section 2.8 Company means Radius Bancorp Inc. (or its successors or assigns, whether by merger, consolidation, sale
of assets, statutory receivership, operation of law, or otherwise). 
 Section 2.9 Effective Date means [Date].

 Section 2.10 Employee means any individual who is employed on a full-time or part-time basis by a Participating
Employer, other than: (a) an individual who is classified as an 

  
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“independent contractor” by a Participating Employer, even if considered an employee under applicable law; (b) an Employee receiving long-term disability benefits; or (c) an
individual who has an employment contract, change of control agreement, or other agreement with the Bank or a Participating Employer who is covered by other programs which provide severance benefits or by their terms exclude such individual from
participation in this Plan. 
 Section 2.11 ERISA means the Employee Retirement Income Security Act of 1974, as
amended (including the corresponding provisions of any succeeding law). 
 Section 2.12 Exchange Act means the
Securities Exchange Act of 1934, as amended (including the corresponding provisions of any succeeding law). 
 Section 2.13
Involuntary Severance means (a) the discharge or dismissal of an Employee by a Participating Employer other than for Cause, or the resignation by the Employee from his position with a Participating Employer, which resignation the
Employee is asked or compelled by a Participating Employer to tender other than for Cause; or (b) termination of employment at an Employee’s election within sixty (60) days after any action following a Change of Control which, either
alone or together with other actions, results in: (i) the reduction in the Employee’s Salary without his consent; (ii) the assignment of the Employee’s principal place of employment outside a thirty (30) mile radius of his
principal place of employment at the time of the Change of Control; or (iii) a material adverse change in the Employee’s title, position, or responsibilities at a Participating Employer. 

Section 2.14 Participating Employer means the Bank any other Affiliated Employer which, with the prior written
approval of the Board and subject to such terms and conditions as may be imposed by the Board, shall adopt this Plan. 

Section 2.15 Plan means this Severance Pay Plan of Radius Bank, as the same may be amended from time to time. 

Section 2.16 Plan Administrator means the Committee or any person, committee, corporation, or organization
designated in Section 4.2, or appointed pursuant to Section 4.2, to perform the responsibilities of that office. 

Section 2.17 Safe Harbor Amount means two (2) times the lesser of (i) the sum of the Employee’s
annualized compensation based on the taxable year immediately preceding the year in which termination of employment occurs or (ii) the maximum amount that may be taken into account under a qualified plan pursuant to section 401(a)(17) of the
Code for the year in which the Employee terminates employment. 
 Section 2.18 Salary means the Employee’s
annual rate of base salary for his services to a Participating Employer (excluding overtime and other forms of additional compensation) preceding the Employee’s Involuntary Severance. If the Employee is paid on an hourly-rate basis, Salary
shall mean the weekly amount of base wages paid for the number of hours of work contemplated by such Employee’s normal weekly work schedule. 

Section 2.19 Service means service rendered by an Employee that is, or would be, recognized under the 401(k) plan
maintained by the Bank for vesting purposes as of the date of the Employee’s Involuntary Severance. 

  
 4 

 ARTICLE III  

BENEFIT 

Section 3.1 Severance Benefit for Employees. 

An Employee with at least one (1) year of Service whose employment with all Participating Employers is terminated under circumstances
constituting an Involuntary Severance, other than for Cause, as a result of, within twelve (12) months following, or within three (3) months prior to, a Change of Control shall be entitled, as severance pay, to a lump sum payment in an
amount equal to two (2) weeks’ Salary, multiplied by the number of the Employee’s whole years of Service. Notwithstanding the foregoing, no Employee who is entitled to receive severance benefits under this Plan shall receive a
severance benefit equal to less than four (4) weeks’ Salary. Similarly, no Employee shall be entitled to receive more than fifty-two (52) weeks’ Salary under this Plan. The lump sum severance payment shall be made as soon as
practicable after, but in no case later than sixty (60) days following, the Employee’s Involuntary Severance. 

Section 3.2 Vesting. 

The benefit to be provided under Section 3.1 of the Plan to an Employee shall be completely vested and nonforfeitable upon the occurrence
of a Change of Control as defined in Section 2.5. 
 Section 3.3 Discretionary Severance Benefit. 

An Employee with at least one (1) year of Service whose employment with all Participating Employers is terminated under circumstances
constituting an Involuntary Severance but not related to a Change of Control as provided under Section 3.1 who is selected for eligibility under the Plan in the sole discretion of the Plan Administrator shall be entitled to such severance
benefit as the Plan Administrator may determine. 
 Section 3.4 Benefit Contingent on Execution of Release. 

The severance benefit provision under the Plan (including the discretionary severance benefit under Section 3.3) to any Employee shall be
subject to the condition that the Employee execute and deliver to the Plan Administrator an instrument, in such form as the Plan Administrator shall prescribe, which shall include a release in favor of the Participating Employers within a timeframe
specified to be in compliance with section 409A of the Code. Such release shall include, but not be limited to, a release of any claims which the Employee may have against any Participating Employer under the Age Discrimination in Employment Act of
1967, as amended; the Fair Labor Standards Act, as amended; the Worker Adjustment Retraining and Notification Act, as amended; the Civil Rights Act of 1964, as amended; Title VII of the Civil Rights Act of 1866, as amended; and any other federal,
state, or local law, rule, 

  
 5 

 
or regulation under which the Employee may have a claim arising out of his employment with a Participating Employer or the termination of such employment. No Participating Employer shall have any
obligation to provide a benefit under this Plan to any Employee who fails or refuses to sign and deliver such a release. 
 ARTICLE IV
 
 ADMINISTRATION 

Section 4.1 Named Fiduciaries. 

The term “Named Fiduciary” shall mean (but only to the extent of the responsibilities of each of them) the Plan Administrator, the
Committee, and the Board. This Article IV is intended to allocate to each Named Fiduciary the responsibility for the prudent execution of the functions assigned to him or it, and none of such responsibilities or any other responsibility shall be
shared by two (2) or more of such Named Fiduciaries. Whenever one (1) Named Fiduciary is required by the Plan to follow the directions of another Named Fiduciary, the two (2) Named Fiduciaries shall not be deemed to have been assigned
a shared responsibility, but the responsibility of the Named Fiduciary giving the directions shall be deemed his sole responsibility, and the responsibility of the Named Fiduciary receiving those directions shall be to follow them insofar as such
instructions are on their face proper under applicable law. 
 Section 4.2 Plan Administrator. 

There shall be a Plan Administrator, who shall be the Committee, or such Employee or officer as may be designated by the Committee, as
hereinafter provided, and who shall, subject to the responsibilities of the Committee and the Board, have the responsibility for the day-to-day control, management, operation, and administration of the Plan. The Plan Administrator shall have the
following responsibilities: 
 (a) To maintain records necessary or appropriate for the administration of the Plan; 

(b) To give and receive such instructions, notices, information, materials, reports, and certifications as may be necessary or appropriate in
the administration of the Plan; 
 (c) To prescribe forms and make rules and regulations consistent with the terms of the Plan and with the
interpretations and other actions of the Committee; 
 (d) To require such proof or evidence of any matter from any person as may be
necessary or appropriate in the administration of the Plan; 
 (e) To prepare and file, distribute, or furnish all reports, plan
descriptions, and other information concerning the Plan, including, without limitation, filings with the Secretary of Labor and employee communications as shall be required of the Plan Administrator under ERISA; 

(f) To determine any question arising in connection with the Plan, including any question of Plan interpretation, and the Plan
Administrator’s decision or action in respect 

  
 6 

 
thereof shall be final, conclusive, and binding upon all persons having an interest under the Plan; provided, however, that any question relating to inconsistency or omission in the Plan,
or interpretation of the provisions of the Plan, shall be referred to the Committee by the Plan Administrator, and the decision of the Committee in respect thereof shall be final, conclusive, and binding upon all persons having an interest under the
Plan; 
 (g) To review and dispose of claims under the Plan filed pursuant to Section 4.4 and appeals of claims decisions pursuant to
Section 4.5; 
 (h) If the Plan Administrator shall determine that by reason of illness, senility, insanity, or for any other reason,
it is undesirable to make any payment to the individual entitled thereto, to direct the application of any amount so payable to the use or benefit of such individual in any manner that the Plan Administrator may deem advisable, or to direct in the
Plan Administrator’s discretion the withholding of any payment under the Plan due to any individual under legal disability until a representative competent to receive such payment on his behalf shall be appointed pursuant to law; 

(i) To discharge such other responsibilities or follow such directions as may be assigned or given by the Committee or the Board; and 

(j) To perform any duty or take any action which is allocated to the Plan Administrator under the Plan. 

The Plan Administrator shall have the power and authority necessary or appropriate to carry out his responsibilities. The Plan Administrator may resign only
be giving at least thirty (30) days’ prior written notice of resignation to the Committee, and such resignation shall be effective on the date specified in such notice. 

Section 4.3 Committee Responsibilities. 

The Committee shall, subject to the responsibilities of the Board, have the following responsibilities: 

(a) To review the performance of the Plan Administrator; 

(b) To hear and decide appeals, pursuant to the claims review procedure contained in Section 4.5 of the Plan, taken from the decisions of
the Plan Administrator; 
 (c) To hear and decide questions, including interpretation of the Plan, as may be referred to the Committee by
the Plan Administrator; 
 (d) To the extent required by ERISA, to establish a funding policy and method consistent with the objectives of
the Plan and the requirements of ERISA, and to review such policy and method at least annually; 
 (e) To report and make recommendations to
the Board regarding changes in the Plan, including changes in the operation and management of the Plan; 

  
 7 

 (f) To designate an alternate Plan Administrator to serve in the event that the Plan
Administrator is absent or otherwise unable to discharge his responsibilities; 
 (g) To remove and replace the Plan Administrator or
alternate Plan Administrator, or both of them, and to fill a vacancy in either office; 
 (h) To discharge such other responsibilities or
follow such directions as may be assigned or given by the Board; and 
 (i) To perform any duty or to take any action which is allocated to
the Committee under the Plan. 
 The Committee shall have the power and authority necessary or appropriate to carry out its responsibilities. 

Section 4.4 Claims Procedure. 

Any claim relating to a benefit under the Plan shall be filed with the Plan Administrator on a form prescribed by it. If a claim is denied, in
whole or in part, the Plan Administrator shall give the claimant written notice of such denial, which notice shall specifically set forth: 

(a) The reasons for the denial; 

(b) The pertinent Plan provisions on which the denial was based; 

(c) Any additional material or information necessary for the claimant to perfect his claim and an explanation of why such material or
information is needed; and 
 (d) An explanation of the Plan’s procedure for review of the denial of the claim. 

In the event that the claim is not granted and notice of denial of a claim is not furnished by the thirtieth
(30th) day after such claim was filed, the claim shall be deemed to have been denied on that day for the purpose of permitting the claimant to request review of the claim. 

Section 4.5 Claims Review Procedure. 

Any individual whose claim filed pursuant to Section 4.4 has been denied, in whole or in part, by the Plan Administrator may request
review of the claim by the Committee, upon a form prescribed by the Plan Administrator. The claimant shall file such form (including a statement of his position) with the Committee no later than sixty (60) days after the mailing or delivery of
the written notice of denial provided for in Section 4.4, or, if such notice is not provided, within sixty (60) days after such claim is deemed denied pursuant to Section 4.4. The claimant shall be permitted to review pertinent
documents. A decision shall be rendered by the Committee and communicated to the claimant not later than thirty (30) days after receipt of the claimant’s written request for review. However, if the Committee finds it necessary, due to
special circumstances (for example, the need to hold a hearing), to extend this period and so notifies the claimant in writing, the decision shall be rendered as soon as practicable, but in no event later than one hundred twenty (120) days
after the claimant’s request for review. The Committee’s decision shall be in writing and shall specifically set forth: 
 (a) The
reasons for the decision; and 
 (b) The pertinent Plan provisions on which the decision is based. 

  
 8 

 Any such decision of the Committee shall be binding upon the claimant and the Participating Employer, and the
Plan Administrator shall take appropriate action to carry out such decision. 
 Section 4.6 Allocation of Fiduciary
Responsibilities and Employment of Advisors. 
 Any Named Fiduciary may: 

(a) Allocate any of his or its responsibilities (other than trustee responsibilities) under the Plan to such other person or persons as he or
it may designate, provided that such allocation and designation shall be in writing and filed with the Plan Administrator; 
 (b) Employ one
(1) or more persons to render advice to him or it with regard to any of his or its responsibilities under the Plan; and 
 (c) Consult
with counsel, who may be counsel to a Participating Employer. 
 Section 4.7 Other Administrative Provisions. 

(a) Any individual whose claim has been denied, in whole or in part, must exhaust the administrative review procedures provided in
Section 4.5 prior to initiating any claim for judicial review. 
 (b) No bond or other security shall be required of the Plan
Administrator, or any officer or employee of a Participating Employer to whom fiduciary responsibilities are allocated by a Named Fiduciary, except as may be required by ERISA. 

(c) Subject to any limitation on the application of this Section 4.7(c) pursuant to ERISA, neither the Plan Administrator, nor any
officer or employee of a Participating Employer to whom fiduciary responsibilities are allocated by a Named Fiduciary, shall be liable for any act of omission or commission by himself or by another person, except for his own individual willful and
intentional malfeasance. 
 (d) The Plan Administrator or the Committee may, except with respect to actions under Section 4.5, shorten,
extend, or waive the time (but not beyond sixty (60) days) required by the Plan for filing any notice or other form with the Plan Administrator or Committee, or taking any other action under the Plan. 

(e) Any person, group of persons, committee, corporation, or organization may serve in more than one (1) fiduciary capacity with respect
to the Plan. 

  
 9 

 (f) Any action taken or omitted by any fiduciary with respect to the Plan, including any
decision, interpretation, claim, denial, or review on appeal, shall be conclusive and binding on the Bank and all interested parties and shall be subject to judicial modification or reversal only to the extent it is determined by a court of
competent jurisdiction that such action or omission was arbitrary and capricious and contrary to the terms of the Plan. 
 ARTICLE V

 MISCELLANEOUS 

Section 5.1 Rights of Employees. 

No Employee shall have any right or claim to any benefit under the Plan except in accordance with the provisions of the Plan. The
establishment of the Plan shall not be construed as conferring upon any Employee or other individual any legal right to a continuation of employment or to any terms or conditions of employment, nor as limiting or qualifying the right of a
Participating Employer to discharge any Employee. 
 Section 5.2 Non-alienation of
Benefit. 
 The right to receive a benefit under the Plan shall not be subject in any manner to anticipation, alienation, or
assignment, nor shall such right be liable for or subject to debts, contracts, liabilities, or torts. 
 Section 5.3
Non-duplication of Benefit. 
 No provisions in this Plan shall be deemed to duplicate any compensation or benefits provided
under any agreement, plan, or program covering the Employee to which a Participating Employer is a party, and any duplicative amount payable under any such agreement, plan, or program shall be applied as an offset to reduce the amounts otherwise
payable hereunder. 
 Section 5.4 Construction. 

Wherever appropriate in the Plan, words used in the singular may be read in the plural; words used in the plural may be read in the singular;
and the masculine gender may be read as referring equally to the feminine gender or the neuter. Any reference to an Article or Section number shall refer to an Article or Section of the Plan, unless otherwise indicated. 

Section 5.5 Headings. 

The headings of Articles and Sections are included solely for convenience of reference. If there is any conflict between such headings and the
text of the Plan, the text shall control. 
 Section 5.6 Governing Law. 

The Plan shall be construed, administered, and enforced according to the laws of the Commonwealth of Massachusetts without giving effect to
the conflict of laws principles thereof, 

  
 10 

 
except to the extent that such laws are preempted by federal law. Any payments made pursuant to this Plan are subject to and conditioned upon their compliance with 12 U.S.C. § 1828(k) and
any regulations promulgated thereunder. 
 Section 5.7 Severability. 

The invalidity or unenforceability, in whole or in part, of any provision of this Plan shall in no way affect the validity or enforceability
of the remainder of such provision or of any other provision of this Plan, and any provision, or part thereof, deemed to be invalid or unenforceable shall be reformed as necessary to render it valid and enforceable to the maximum possible extent.

 Section 5.8 Termination or Amendment. 

(a) The Participating Employers expect to continue the Plan indefinitely, but, subject to the provisions of this Section 5.8, the
Participating Employers expressly reserve the right to terminate or amend the Plan, in whole or in part, at any time by action of the Board; provided, however, that no such amendment or termination which adversely affects the current or
prospective rights of any Employee shall be effective earlier than six (6) months after written notice thereof is given to such Employee. 

(b) In the event that a corporation or trade or business other than the Bank shall adopt this Plan, such corporation or trade or business
shall, by adopting the Plan, empower the Bank to amend or terminate the Plan, insofar as it shall cover employees of such corporation or trade or business, upon the terms and conditions set forth in this section 5.8(b); provided, however,
that any such corporation or trade or business may, by action of its board of directors or other governing body, amend or terminate the Plan, insofar as it shall cover employees of such corporation or trade or business, at different times and in a
different manner. In the event of any such amendment or termination by action of the board of directors or other governing body of such a corporation or trade or business, a separate plan shall be deemed to have been established for the employees of
such corporation or trade or business. 
 Section 5.9 Withholding. 

Payments from this Plan shall be subject to all applicable federal, state, and local income withholding and employment taxes. 

Section 5.10 Status as Welfare Benefit Plan under ERISA. 

This Plan is an “employee welfare benefit plan” within the meaning of section 3(1) of ERISA and shall be construed, administered,
and enforced according to the provisions of ERISA. 
 Section 5.11 Payments to Key Employees. 

Notwithstanding anything in this Plan to the contrary, to the extent required under section 409A of the Code, no payment to be made to a key
employee (within the meaning of section 409A of the Code) shall be made sooner than six (6) months after such termination of employment. 

  
 11 

 Section 5.12 Involuntary Termination Payments to Employees (Safe Harbor).

 In the event a payment is made to an Employee upon an Involuntary Severance, as provided in Section 2.13, such payment will
not be subject to section 409A of the Code provided that such payment does not exceed the Safe Harbor Amount. However, if such payment exceeds the Safe Harbor Amount, only the amount in excess of the Safe Harbor Amount will be subject to section
409A of the Code. In addition, if such Employee is considered a key employee (within the meaning of section 409A of the Code), such payment in excess of the Safe Harbor Amount will have its timing delayed and will be subject to the six (6)-month
wait-period imposed by section 409A of the Code, as provided in Section 5.11 of this Plan. The Employee, the Company, and the Bank agree that the termination benefits described in this Section 5.12 are intended to be exempt from section
409A pursuant to Treasury Regulation section 1.409A-1(b)(9)(iii) as the safe harbor for separation pay due to involuntary separation from service. 

  
 12EX-10.6

 Exhibit 10.6 

FIRST TRADE UNION BANK 

AMENDED AND RESTATED SUPPLEMENTAL 

EXECUTIVE RETIREMENT BENEFIT AGREEMENT 

This agreement (hereinafter the “Agreement”) is made this 27th of May, 1999, by and between First Trade Union Bank, a corporation
organized under the laws of the Commonwealth of Massachusetts (the “Bank”) and [Name] (hereinafter referred to as the “Participant”) and 

WITNESSETH THAT: 
 WHEREAS, the
Bank has heretofore entered into and established a Supplemental Executive Retirement Plan (“SERP”) for the benefit of the Participant effective as of January 1, 1995 (the “Prior Agreement”) which the Bank intended would be
exempt from Parts 2, 3 and 4 of Title I of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) pursuant to ERISA Sections 201(2), 301(a)(3) and 401(a)(1), respectively; 

WHEREAS, in anticipation of its obligations under the Prior Agreement the Bank has paid premiums on an insurance policy owned by the
Participant pursuant to and in accordance with an Executive Shared Control Insurance Agreement, which Agreement, contemporaneously herewith, is to be amended and restated in its entirety as attached (the “ESCIA”); and 

WHEREAS, questions have arisen as to the proper interpretation of the SERP and the ESCIA (each as in effect prior to restatement), which the
Bank and the Participant desire to resolve by this amendment and restatement and the separate amendment and restatement of the ESCIA; 
 NOW
THEREFORE, the Bank and the Participant hereby amend, restate and continue the Prior Agreement on and subject to the terms and conditions hereinafter set forth: 

ARTICLE I 
 Definitions

  

	Section 1.1	Board 

 “Board” means the Board of Directors of the Bank. 

 

	Section 1.2	Bank 

 “Bank” means the First Trade Union Bank, a corporation organized under
the laws of the Commonwealth of Massachusetts, or any successor corporation or other entity resulting from a merger or consolidation into or with the Bank or a transfer or sale of substantially all of the assets of Bank. 

	Section 1.3	Cause 

 “Cause” means only one or more of the acts or omissions described in
(i) through (iv) below, as determined by the Board in good faith: 
 (i) the Participant’s continued failure to materially
perform, other than on account of disability, his duties and responsibilities as an officer and executive of the Bank; 
 (ii) the
Participant’s breach of fiduciary duty, i.e., an act of dishonesty, misappropriation, embezzlement, intentional fraud, direct or indirect self-dealing or similar conduct with respect to the Bank’s business, it being expressly understood
that the mere breach of the Participant’s duty of care to the Bank which does not constitute any of the acts specified above in this paragraph (ii) shall not constitute Cause under this paragraph (ii); 

(iii) the Participant’s conviction by a court of competent jurisdiction of, or the entry of a plea of guilty or no contest to, any felony
or other crime involving moral turpitude; and 
 (iv) the Participant’s personal dishonesty, incompetence, willful misconduct, breach
of fiduciary duty involving personal profit, intentional failure to perform stated duties, willful violation of any law, rule or regulation (other than traffic violations or similar offenses) or final cease-and-desist order or material breach of any
provision of this Agreement; 
 provided, however, that no act or omission shall constitute “Cause” under item (i) above until the
Board has provided the Participant with a detailed written notice of their conclusion that such an act or omission has occurred and then only if the Participant has failed to correct such act or omission within a reasonable period of time. The
parties acknowledge that item (iv) above has been included in compliance with applicable regulations of the federal Office of Thrift Supervision and shall be interpreted consistent with such regulations. To the extent consistent with such
regulations, however, in determining whether “incompetence” under item (iv) above exists acts or omissions of the Participant shall be measured against the standards for professional conduct generally prevailing for executive officers
having comparable positions in the savings institution industry. 
  

	Section 1.4	Change of Control 

 “Change of Control” means the happening of any of the
following: 
 (i) the acquisition by any individual, entity or group (within the means of Section 13(d)(3) or 14(d)(2) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of twenty-five (25) percent or more of the then outstanding shares of
common stock of the Bank; provided, however, that any acquisition by any one or more of the following (each, an “Approved Purchaser”) shall be disregarded in determining whether a Change in Control has occurred: (A) the Bank or any of
its affiliates, or any employee benefit plan (or 

 
related trust) sponsored or maintained by the Bank or any of its affiliates, (B) any entity or corporation at least seventy-five (75) percent of the beneficial ownership interests in
which are owned by entities who were the beneficial owners of the common stock of the Bank immediately prior to such acquisition, (C) any Taft-Hartley benefit fund, or (D) any entity or group (so defined) in which or of which the
Participant is to any extent a beneficial owner or member; or 
 (ii) The approval by the shareholders of the Bank of a reorganization,
merger or consolidation (a “Business Combination”), or a sale of all or substantially all of the Bank’s assets, unless at least seventy-five (75) percent of the beneficial interests in the surviving entity or purchaser are owned,
directly or indirectly, by Approved Purchasers or individuals or entities who were beneficial owners, directly or indirectly, of the common stock of the Bank immediately prior to such Business Combination or sale; or 

(iii) individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at
least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Bank’s shareholders, was approved by a vote of at least a majority of the
directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual
or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of an individual, entity or group (within the meaning of Section 13(d)(3) or
Section 14(d)(2) of the Exchange Act) other than the Board; or 
 (iv) approval by the shareholders of the Bank of a complete
liquidation or dissolution of the Bank. 
  

	Section 1.5	Compensation 

 “Compensation,” with respect to any calendar year, means the
amount of the base salary paid the Participant by the Bank in respect of such calendar year. 
  

	Section 1.6	Disabled 

 “Disabled” or “Disability” means, in the sole judgment of
the Board (but subject to the balance of this definition), a Participant suffers from a condition caused by an injury or sickness that prevents the Participant from doing each of the main duties of any job for which the Participant is qualified by
training, education, or experience. Qualification for long-term disability payments pursuant to the Bank’s disability insurance plan, if any, shall conclusively establish the Participant as Disabled and having suffered a Disability for purposes
of this Agreement, however. 

	Section 1.7	Final Average Three Years’ Compensation 

 “Final Average Three Years’
Compensation” means the average of the Compensation of the Participant for the three calendar years preceding his or her Normal Retirement Date or, if earlier, his or her termination of employment for any reason. 

 

	Section 1.8	Good Reason 

 “Good Reason” means any of the following: 

(i) any material reduction in the Participant’s responsibilities or authority, or compensation or benefits, with or from the Bank, and

 (ii) any relocation of the site where the Participant is expected to perform his or her duties to a site more than fifty (50) miles
from the site at which the Participant was employed prior to such relocation, 
 provided that no act or omission of the Bank shall give rise to “Good
Reason” until the Participant has provided the Board with a detailed written notice of his conclusion that such an act or omission has occurred and then only if the Bank has failed to correct such act or omission within a reasonable period of
time. 
  

	Section 1.9	Normal Retirement Date 

 “Normal Retirement Date” means the date the
Participant attains age 65. 
  

	Section 1.10	Participant 

 “Participant” means [Name]. 

 

	Section 1.11	Plan Administrator 

 “Plan Administrator” means the Board or such other officer
or person as the Board may designate to carry out the duties assigned the Plan Administrator under this Agreement. 
  

	Section 1.12	Policy Retirement Benefit 

 “Policy Retirement Benefit” means the monthly
benefit which is the taxable equivalent of the monthly benefit, payable for a period of 180 months and commencing on the Participant’s Normal Retirement Date (or the date of computation if subsequent to his or her Normal Retirement Date), which
may be provided from the Participant’s interest in the cash surrender value of the policy which is the subject of the ESCIA (or his or her beneficiaries’ interest in the death benefit of such policy, in the event the Policy Retirement
Benefit is being computed in connection with the Participant’s death), making maximum use of policy loans and other tax-free withdrawals and applying the interest crediting rate, loan interest rates, maximum marginal rates of tax and all other
relevant factors as of the date of computation. For this purpose, “taxable equivalent” means that to the extent a monthly benefit from the Participant’s (or his or her 

 
beneficiaries’) interest in the policy may be provided through the use of policy loans or other tax-free withdrawals, the Policy Retirement Benefit is the greater, fully taxable, monthly
benefit which, after payment of taxes at the maximum marginal rates of tax, would equal the monthly benefit payable on a tax-free basis from the policy. In determining the Policy Retirement Benefit, no premiums or other charges for insurance shall
be assumed to affect the Participant’s interest in the policy. 
  

	Section 1.13	Targeted Retirement Benefit 

 “Targeted Retirement Benefit” means a monthly
benefit payable for a period of 180 months commencing on the Participant’s Normal Retirement Date (or the date of computation if subsequent to his or her Normal Retirement Date) equal to one twelfth of thirty percent (30%) of the
Participant’s Final Average Three Year’s Compensation. 
  

	Section 1.14	Year of Service 

 “Year of Service” means the twelve consecutive-month period
beginning on the Participant’s most recent date of hire with the Bank, and each subsequent twelve consecutive month period thereafter, provided that during all of any such period the Participant has remained an employee of the Bank. 

ARTICLE II 
 Benefits

  

	Section 2.1	In General 

 If the Participant’s employment 

 

	 	(i)	(A)     terminates on account of death or Disability, 

  

	 	    	(B)     is terminated by the Participant following a Change of Control for Good Reason, or 

  

	 	    	(C)     is terminated by the Bank without Cause, and 

  

	 	(ii)	the Participant has five (5) or more Years of Service at such termination, then 

 the Bank shall release
its interest in the policy which is the subject of the ESCIA, and the Participant’s interest therein shall be increased by a like amount, to the extent, if any, necessary so that the Policy Retirement Benefit determined at termination of
employment equals the Targeted Retirement Benefit. 
 The Bank shall not have any further liability to the Participant (beyond the release
of its entire interest) in the event the release of its entire interest to the Participant would still not provide the Participant with a Policy Retirement Benefit equal to the Retirement Benefit. The Participant shall not have any liability to the
Bank in the event the Policy Retirement Benefit, without any release of the Bank’s interest, exceeds the Targeted Retirement Benefit. 

 In all other circumstances, the Bank and the Participant shall have only their respective rights
set out in the ESCIA with respect to the policy which is the subject of the ESCIA, i.e., in general the Participant will be entitled only to any cash surrender value in excess of the Bank’s accumulated premiums. 

 

	Section 2.2	Forfeiture for Termination for Cause 

 In the event the Participant’s employment is
terminated by the Bank for Cause, all rights and privileges provided to the Participant under this Agreement shall be terminated and forfeited forthwith. Any decision by the Board in this regard shall be binding upon the Participant and his or her
beneficiaries and spouse. 
  

	Section 2.3	Periodic Policy Review 

 Periodically while this Agreement remains in effect the Bank
shall review the progress of the policy which is the subject of the ESCIA towards accumulating a sufficient interest for the benefit of the Participant to provide a Policy Retirement Benefit equal to the Targeted Retirement Benefit. If in the course
of any such review, it appears that the Participant’s interest will not provide a Policy Retirement Benefit at least equal to the Targeted Retirement Benefit, such as because of increases in the Participant’s base salary, and modifications
to the policy are not precluded by the Participant’s lack of insurability or other insurance underwriting constraints, the Bank shall consider in its discretion appropriate adjustments in the premiums, face amount or other terms and conditions
of the policy. 
  

	Section 2.4	Liability for Taxes 

 Any liability for income or other taxes, including interest,
penalties and additions thereto, arising out of the actions of the Bank pursuant to this Agreement shall be the exclusive responsibility of the Participant. 

ARTICLE III 

Administration of the Agreement 

The Plan Administrator shall be responsible for the general operation and administration of the Agreement and for carrying out the provisions
thereof. The Plan Administrator shall have the sole and exclusive authority and discretion to administer and interpret the Agreement in its discretion, and any interpretation or determination of the Plan Administrator made in good faith shall be
final and binding on all parties interested therein. 

 ARTICLE IV 

Term of the Agreement 

This Agreement shall remain in effect in accordance with its terms until terminated by agreement of the Bank and the Participant or the
complete performance (or elimination of any obligation to perform) of the parties’ respective obligations hereunder. 
 ARTICLE V

 General Provisions 
  

	Section 5.1	Participant’s Rights Unsecured 

 The Participant, and his or her spouse or other
beneficiary shall not have any rights in or against any specific assets of the Bank in the event of its failure to perform as agreed. If, at any time, it is determined that the Bank is insolvent, any Bank assets shall be first used to satisfy such
claims of the general creditors of the Bank as a court of competent jurisdiction may direct and in no instance shall the Participant or Beneficiary receive preferential treatment. If the Bank or a person claiming to be a creditor of the Bank alleges
in writing to the Board that the Bank has become insolvent, the Board shall determine independently within thirty (30) days after receipt of such notice, whether or not the Bank is insolvent. Pending such determination, the Bank shall not take
any action to implement the agreements here undertaken until such time, if ever, as the Board has determined that the Bank is not insolvent (or is no longer insolvent, if the Board initially determined the Bank to be insolvent). 

 

	Section 5.2	No Guarantee of Performance 

 Nothing contained in this Agreement shall constitute a
guaranty by the Bank, Board or any other person or entity that the assets of the Bank will be sufficient to fulfill its agreements hereunder undertaken. 
  

	Section 5.3	No Enlargement of Employee Rights 

 This Agreement shall not be construed to give the
Participant the right to be retained in the service of the Bank or employed by the Bank for any particular length of time. 
  

	Section 5.4	Spendthrift Provisions 

 No interest or any right of any person or entity under this
Agreement shall be subject in any manner to sale, transfer, assignment, pledge, attachment garnishment, or other alienation or encumbrance of any kind; nor shall any such interest be taken, either voluntarily or involuntarily for the satisfaction of
the debts of, or other obligations or claims against such person or entity, including claims for alimony support, separate maintenance and claims in bankruptcy proceedings. 

	Section 5.5	Corporate Successors 

 This Agreement shall not be terminated by a transfer or sale of
assets of the Bank or by merger or consolidation of the Bank into or with any other corporation or other entity. 
  

	Section 5.6	Superceded Arrangements; Amendment 

 The terms of this Agreement were approved by the
Board of Directors of the Bank on May 27, 1999, and supercede in their entirety the terms of the Prior Agreement and, to the extent they may otherwise be considered in effect or relevant, the terms of the SERP maintained by the Bank in which
the Participant participated prior to the execution of the Prior Agreement. This Agreement, and the attached ESCIA, contain the entire understanding of the parties in respect of supplemental retirement benefits for service with the Bank, supersede
all prior agreements and understandings, whether written or oral, relating to the subject matter hereof and may not be amended except by a written instrument hereafter signed by the Participant and a duly authorized member or representative of the
Board. 
  

					
	  
	 		 	  

		 		 	Chairman of the Board

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