Document:

EMPLOYMENT AGREEMENT

     This  Agreement  entered  into this 1st day of March,  2009 by and  between
Fairport Savings Bank (the "Bank"), a  federally-chartered  savings  association
with its principal executive office at 45 South Main Street,  Fairport, New York
14450, and Dana Gavenda ("Executive").

     WHEREAS,  the Bank  wishes to assure  itself of the  continued  services of
Executive for the period provided in this Agreement; and

     WHEREAS,  Executive  is willing to  continue  to serve in the employ of the
Bank on a full-time basis for said period.

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

1.   POSITION AND RESPONSIBILITIES

     (a) During  the period of his  employment  hereunder,  Executive  agrees to
serve as President and Chief Executive Officer,  and as a member of the Board of
Directors (the "Board"), of the Bank. During said period,  Executive also agrees
to serve, if elected,  as an officer and director of any subsidiary or affiliate
of the Bank.  Failure to reelect  Executive as the President and Chief Executive
Officer of the Bank  without  the consent of  Executive  during the term of this
Agreement shall constitute a breach of this Agreement.

     (b) During the period of his employment  hereunder,  Executive shall devote
substantially  all his  business  time,  attention,  skill,  and  efforts to the
faithful  performance of his duties as President and Chief Executive  Officer of
the Bank,  subject to the  direction  of the  Board,  including  overseeing  and
directing  the  day-to-day   operations  and  management  of  the  Bank;  making
recommendations to the Board regarding  asset/liability  management,  long-range
planning and  compensation of officers;  promoting the business of the Bank; and
such  other  duties  as the  Board  may  from  time to time  reasonably  direct.
Provided,  however,  that with the  approval  of the Board,  as  evidenced  by a
resolution  of the Board,  Executive  may serve,  or continue  to serve,  on the
boards of directors  of, and hold other  offices or positions  with  business or
not-for-profit  organizations,  which, in the Board's  judgment,  do not compete
with the Bank or will not present any  conflict  of interest  with the Bank,  or
materially  affect  the  performance  of  Executive's  duties  pursuant  to this
Agreement  (for purposes of this Section 1(b),  Board  approval  shall be deemed
provided  as to  service  with any such  business  or other  organizations  that
Executive was serving as of the date of this Agreement as heretofore  identified
to the Board).

2.   TERM

     The period of Executive's employment under this agreement shall begin as of
March 1, 2009 and shall  continue  for a period of  thirty-six  (36) full months
thereafter.  This period of employment  shall  automatically  be extended for an
additional  twelve  (12)  full  calendar  months,  and on each  succeeding  year
thereafter,  respectively, unless otherwise terminated hereunder or the Board of
Directors provides notice to the Executive, not less than ninety (90) days prior
to the  expiration  of the  then  current  term of  this  Agreement,  that  this
Agreement  shall not be renewed.  Any  non-renewal of the term of this Agreement

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shall be approved by the majority of the disinterested Directors of the Bank and
the reasons therefore shall be noted in the minutes of the Board of Directors.

3.   COMPENSATION AND REIMBURSEMENT

     (a) The  compensation  specified under this Agreement shall  constitute the
salary and  benefits  paid for the duties  described in Section  1(b).  The Bank
shall pay Executive as  compensation a salary of not less than $163,000 per year
("Base  Salary"),  which Base  Salary  shall be payable in  accordance  with the
normal  and  customary  payroll  practices  of the  Bank,  but in no event  less
frequently than monthly.  During the period of this  Agreement,  the Executive's
Base Salary shall be reviewed at least annually.  Such review shall be conducted
by a Committee  designated  by the Board,  and the Board may  increase,  but not
decrease,  Executive's Base Salary (any increase in the Base Salary shall become
the "Base  Salary"  for  purposes  of this  Agreement).  In addition to the Base
Salary  provided in this Section 3(a), the Bank shall provide  Executive,  at no
cost to  Executive,  with all such other  benefits as are provided  uniformly to
permanent full-time employees of the Bank. Base Salary shall include any amounts
of compensation  deferred by Executive under tax-qualified and  nontax-qualified
plans maintained by the Bank.

     (b)  The  Bank  will  provide   Executive  with  employee   benefit  plans,
arrangements  and  perquisites   substantially  equivalent  to  those  in  which
Executive was participating or otherwise deriving benefit from immediately prior
to the beginning of the term of this Agreement,  and the Bank will not,  without
Executive's prior written consent, make any changes in such plans,  arrangements
or  perquisites  which would  adversely  affect  Executive's  rights or benefits
thereunder, unless such change is part of a change in benefits applicable to all
employees  of the Bank in  connection  with a bank-wide  benefit  plan.  Without
limiting the  generality of the foregoing  provisions  of this  Subsection  (b),
Executive  will be  entitled to  participate  in or receive  benefits  under any
employee  benefit  plans  including  but  not  limited  to,   retirement  plans,
supplemental  retirement  plans,  pension  plans,  profit-sharing  plans,  stock
benefit  plans,  health-and-accident  plans,  medical  coverage  and  any  other
employee benefit plan or arrangement made available by the Bank in the future to
its senior  executives and key management  employees,  subject to and on a basis
consistent with the terms,  conditions and overall  administration of such plans
and arrangements.  Executive will be entitled to incentive  compensation  and/or
bonuses as  provided in any plan of the Bank in which  Executive  is eligible to
participate  (and he shall be  entitled  to a pro rata  distribution  under  any
incentive  compensation  or bonus plan as to any year in which a termination  of
employment   occurs,   other  than   termination  for  Cause).   Such  incentive
compensation  and/or bonuses shall be based on Executive's  performance  and the
performance and financial condition of the Bank. Nothing paid to Executive under
any such plan or arrangement will be deemed to be in lieu of other  compensation
to which Executive is entitled under this Agreement.

     (c) If the Bank is required to prepare an accounting restatement due to the
material  noncompliance  of the Bank with any  financial  reporting  requirement
under the securities  laws, the Executive  shall  reimburse the Bank for (i) any
bonus or other  incentive-based  or  equity-based  compensation  received by the
Executive from the Bank during the twelve (12) month period  following the first
public  issuance or filing with the Commission  (whichever  first occurs) of the

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financial document embodying such financial reporting  requirement and; (ii) any
profits  realized  from the sale of  securities of the issuer during that twelve
(12) month period.

     (d) In addition to the Base Salary  provided for by  paragraph  (a) of this
Section 3, the Bank shall pay or reimburse  Executive for all reasonable  travel
and  other  reasonable   expenses   incurred  by  Executive  in  performing  his
obligations under this Agreement and may provide such additional compensation in
such form and such amounts as the Board may from time to time determine.

     (e)  Executive  shall be  entitled to five (5) weeks of paid  vacation  per
calendar  year to increase to six (6) weeks after ten (10) years of service,  or
such  greater  period  as may be  approved  from  time to time by the  Board  of
Directors.  Any paid vacation  time which is unused  during a calendar  shall be
treated in a manner  consistent  with the Bank's  policy for unused  vacation as
provided in the Employee Handbook.

     (f)  Executive  shall  also be  entitled  to an  automobile  of the  Bank's
selection  to be used by  Executive  in  rendering  services to the Bank and for
limited personal use, together with reimbursement for all gas, oil, maintenance,
insurance and repairs  required by reason of the use of such vehicle.  Executive
shall be  required  to account  for all costs of use of such  automobile  in the
manner  prescribed  by the Board.  As an  alternative,  the Bank may provide the
Employee  with an  automobile  allowance  equivalent to the value of the vehicle
being provided including expenses.

4.   PAYMENTS TO EXECUTIVE UPON AN EVENT OF TERMINATION

     (a) Upon the  occurrence  of an Event of  Termination  (as herein  defined)
during  Executive's term of employment  under this Agreement,  the provisions of
this Section shall apply. As used in this  Agreement,  an "Event of Termination"
shall mean and include any one or more of the following:

     (i)  the  termination  by the  Bank  of  Executive's  full-time  employment
          hereunder for any reason other than following a Change in Control,  as
          defined in Section 5(a) hereof,  or termination  for Cause, as defined
          in  Section 8 hereof,  or upon  Retirement  as  defined  in  Section 7
          hereof, or for Disability as set forth in Section 6 hereof; and

     (ii) Executive's  resignation from the Bank's employ,  upon any (A) failure
          to elect or reelect or to appoint or reappoint  Executive as President
          and Chief  Executive  Officer  of the  Bank,  unless  consented  to by
          Executive,  (B) material change in Executive's  function,  duties,  or
          responsibilities,  which  change would cause  Executive's  position to
          become  one of lesser  responsibility,  importance,  or scope from the
          position and attributes thereof described in Section 1 above, to which
          Executive  has not agreed in  writing  (and any such  material  change
          shall be deemed a continuing breach of this Agreement), (C) relocation
          of  Executive's  principal  place of  employment by more than 30 miles
          from  its  location  at the  effective  date  of the  Agreement,  or a

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          material  reduction in the benefits and  perquisites to Executive from
          those  being  provided  as of the  effective  date of  this  Agreement
          (unless  such  reduction  is part of a  reduction  in  benefits to all
          employees of the Bank in connection with a bank-wide benefit plan), or
          (D) material breach of this Agreement by the Bank.

     Upon the  occurrence of any event  described in clauses (ii) (A), (B), (C),
or (D)  above,  Executive  shall  have  the  right to  elect  to  terminate  his
employment  under this Agreement by  resignation  upon not less than thirty (30)
days prior  written  notice  given  within a  reasonable  period of time (not to
exceed 90 days)  after  the  event  giving  rise to said  right to elect,  which
termination by Executive  shall be an Event of Termination;  provided,  however,
that the Bank shall have 30 days following its receipt of such written notice to
cure the  situation  identified  by  Executive  as the  basis  for the  Event of
Termination.   Notwithstanding  the  preceding  sentence,  in  the  event  of  a
continuing  breach of this  Agreement by the Bank,  Executive,  after giving due
notice within the  prescribed  time frame of an initial event  specified  above,
shall not waive any rights  solely  under  this  Agreement  and this  Section by
virtue of the fact that Executive has submitted his resignation but has remained
in the  employment  of the Bank and is  engaged  in good  faith  discussions  to
resolve any  occurrence  of an event  described in clauses (A), (B), (C), or (D)
above.

     (b) Upon the  occurrence  of an Event of  Termination,  the Bank  shall pay
Executive,  or,  in the  event  of his  subsequent  death,  his  beneficiary  or
beneficiaries, or his estate, as the case may be, as severance pay or liquidated
damages, or both, a cash amount equal to the greater of the payments due for one
(1)  times  the sum of:  (i) the  highest  annual  rate of Base  Salary  paid to
Executive  at any time under  this  Agreement,  and (ii) the  greater of (x) the
average  annual  cash  bonus  paid  to  Executive  with  respect  to the one (1)
completed  fiscal year prior to the Event of Termination,  or (y) the cash bonus
paid to  Executive  with  respect to the fiscal year ended prior to the Event of
Termination;  provided  however,  that if the Bank is not in compliance with its
minimum capital  requirements or if such payments would cause the Bank's capital
to be reduced below its minimum  capital  requirements,  such payments  shall be
deferred  until such time as the Bank is in  capital  compliance;  and  provided
further,  that in no event shall total severance  compensation  from all sources
exceed three (3) times Executive's average annual compensation over the five (5)
fiscal years  preceding the fiscal year in which the  termination  of employment
occurs (for purposes of this provision and only for purposes of this  provision,
compensation  shall mean any payment of money or provision of any other thing of
value in  consideration  of  employment,  including,  without  limitation,  base
salary,  commissions,  bonuses,  pension  and profit  sharing  plans,  severance
payments,  retirement,  director or committee  fees,  fringe  benefits,  and the
payment of expense items without  accountability  or business purpose or that do
not meet the Internal Revenue Service ("IRS")  requirement for  deductibility by
the Bank). The present value of the payment required  hereunder shall be made in
a lump sum  within  thirty  (30) days  following  Executive's  "Separation  from
Service," as defined in Code  Section 409A of the Internal  Revenue Code of 1986
(as  amended,  the  "Code"),  provided,  however,  if  Executive is a "Specified
Employee," as defined in Code Section 409A, then,  solely to the extent required
to avoid  penalties under Code Section 409A, such payment shall be delayed until
the first day of the seventh full month  following  Executive's  Separation from
Service.  For  these  purposes,  present  value  shall be  determined  using the
applicable  federal rate under Code Section 1274(d).  Such payments shall not be
reduced in the event Executive obtains other employment following termination of
employment.

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     (c) Upon the occurrence of an Event of Termination,  the Bank will cause to
be continued at the Bank's  expense,  life,  insurance  coverage and non-taxable
medical and dental  insurance  that is  substantially  identical to the coverage
maintained by the Bank for  Executive  prior to his  termination,  except to the
extent such coverage may be changed in its  application  to all Bank  employees.
Such coverage shall cease twelve (12) months following the Event of Termination.

     5.   CHANGE IN CONTROL

     (a) No benefit  shall be payable  under this  Section 5 unless  there shall
have  been a Change  in  Control,  as set  forth  below.  For  purposes  of this
Agreement,  a "Change in Control"  shall mean a change in control of the Bank or
the Bank's  mid-tier  holding  company (the "Company") or mutual holding company
(the "MHC"),  of a nature that: (i) would be required to be reported in response
to Item 1(a) of the current report on Form 8-K, as in effect on the date hereof,
pursuant  to Section  13 or 15(d) of the  Securities  Exchange  Act of 1934 (the
"Exchange  Act");  or (ii) without  limitation such a Change in Control shall be
deemed to have occurred at such time as (a) any "person" (as the term is used in
Sections  13(d) and 14(d) of the  Exchange  Act) is or becomes  the  "beneficial
owner"  (as  defined  in  Rule  13d-3  under  the  Exchange  Act),  directly  or
indirectly, of securities of the Bank or the Company representing 25% or more of
the combined  voting  power of Bank's or the  Company's  outstanding  securities
except for any securities  purchased by the Bank's employee stock ownership plan
or trust;  or (b)  individuals  who constitute the Board on the date hereof (the
"Incumbent  Board")  cease for any  reason  to  constitute  at least a  majority
thereof,  provided  that any person  becoming a director  subsequent to the date
hereof whose election was approved by a vote of at least  three-quarters  of the
members of the entire Board of Directors then in office shall be considered, for
purposes of this clause (b), as though he were a member of the Incumbent  Board;
or  (c) a  plan  of  reorganization,  merger,  consolidation,  sale  of  all  or
substantially  all the assets of the Bank or the Company or similar  transaction
in which the Bank or Company is not the surviving  institution  occurs; or (d) a
proxy statement soliciting proxies from stockholders of the Bank or the Company,
by someone other than the current management of the Company, seeking stockholder
approval of a plan of reorganization, merger or consolidation of the Bank or the
Company  or similar  transaction  with one or more  corporations  as a result of
which the outstanding shares of the class of securities then subject to the plan
are exchanged for or converted into cash or property or securities not issued by
the  Company;  or (e) a  tender  offer  is made  for  25% or more of the  voting
securities of the Bank or the Company,  and the shareholders owning beneficially
or of  record  25% or  more of the  outstanding  securities  of the  Bank or the
Company have  tendered or offered to sell their  shares  pursuant to such tender
offer  and such  tendered  shares  have been  accepted  by the  tender  offeror.
Notwithstanding  anything  in this  sub-section  to the  contrary,  a Change  in
Control  shall not be deemed to have  occurred upon the issuance of common stock
by the Company in a minority stock offering, or upon conversion of the Company's
mutual  holding  company  parent  to  stock  form,  or in  connection  with  any
reorganization used to effect such a conversion.

     (b) If any of the events  described in Section 5(a) hereof  constituting  a
Change in Control  shall  have  occurred,  Executive  shall be  entitled  to the
benefits  provided  in  paragraphs  (c)  and  (d) of  this  Section  5 upon  his
subsequent  termination  of  employment  at any  time  during  the  term of this
Agreement  (regardless of whether such termination  results from his resignation
or his dismissal).

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     (c) Upon the occurrence of a Change in Control, Executive, or, in the event
of his subsequent  death  (subsequent to such  termination),  his beneficiary or
beneficiaries, or his estate, as the case may be, shall receive as severance pay
or liquidated  damages,  or both, an amount equal to three times the sum of: (i)
the highest  annual rate of Base Salary paid to Executive at any time under this
Agreement,  and (ii) the  greater of (x) the  average  annual cash bonus paid to
Executive  with  respect  to the  three  completed  fiscal  years  prior  to the
termination,  or (y) the cash bonus paid to Executive with respect to the fiscal
year ended prior to the termination;  provided however,  that if the Bank is not
in compliance  with its minimum  capital  requirements or if such payments would
cause the Bank's capital to be reduced below its minimum  capital  requirements,
such  payments  shall be  deferred  until  such  time as the Bank is in  capital
compliance;  and  provided  further  that  in no  event  shall  total  severance
compensation  from all sources  exceed three times  Executive's  average  annual
compensation  over the five fiscal years  preceding the fiscal year in which the
termination  of employment  occurs (for purposes of this  provision and only for
purposes  of this  provision,  compensation  shall mean any  payment of money or
provision of any other thing of value in consideration of employment, including,
without  limitation,  base  salary,  commissions,  bonuses,  pension  and profit
sharing  plans,  severance  payments,  retirement,  director or committee  fees,
fringe  benefits,  and the payment of expense  items without  accountability  or
business  purpose or that do not meet the IRS requirement for  deductibility  by
the Bank). The foregoing severance/liquidated damages payment(s), as well as all
other  benefits  described in this Agreement that would be payable upon a Change
in Control,  shall be made to Executive's  surviving  spouse, or if no surviving
spouse,  to his estate, in the event that the Company or the Bank enters into an
agreement  that would cause a Change in Control of the Bank,  and Executive dies
after such  agreement  is executed  but prior to  consummation  of the Change in
Control,  which payments shall commence upon, and shall be contingent  upon, the
actual  consummation of the Change in Control.  The present value of the payment
required hereunder shall be made in a lump sum within thirty (30) days following
Executive's "Separation from Service," as defined in Code Section 409A; provided
however,  if  Executive is a  "Specified  Employee,"  as defined in Code Section
409A, then,  solely to the extent required to avoid penalties under Code Section
409A,  such  payment  shall be delayed  until the first day of the seventh  full
month following Executive's Separation from Service. For these purposes, present
value shall be determined  using the applicable  federal rate under Code Section
1274(d).

     (d) Upon the occurrence of a Change in Control  followed by the termination
of  Executive's  employment,  the Bank will cause to be  continued at the Bank's
expense life, health and disability insurance coverage  substantially  identical
to the  coverage  maintained  by the Bank for  Executive  prior to the Change in
Control, except to the extent such coverage is changed in its application to all
employees  of the Bank.  Such  coverage  shall cease twelve (12) months from the
date of Executive's termination of employment.

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

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Executive,  provided,  however,  that if it is determined  that such election by
Executive  shall be in violation of Code Section  409A,  the  allocation  of the
required reduction shall be pro-rata.

     (f) At the  occurrence of any one of the  following:  (a) attainment by the
Executive  of the age of 62 years;  or (b)  implementation  of a Board  approved
Management  Recognition  Program (a stock-based benefit plan) that complies with
all applicable  regulations of the Office of Thrift Supervision or any successor
regulator of FSB Community Bankshares,  Inc., the compensation to be received in
the event of a Change of Control  will be: (i) the  highest  annual rate of Base
Salary paid to Executive at any time under this Agreement,  and (ii) the greater
of (x) the average  annual cash bonus paid to Executive with respect to one year
prior to the  termination,  or (y) the cash bonus paid to Executive with respect
to the fiscal year ended prior to the termination; provided however, that if the
Bank is not in  compliance  with its  minimum  capital  requirements  or if such
payments would cause the Bank's capital to be reduced below its minimum  capital
requirements,  such payments shall be deferred until such time as the Bank is in
capital compliance.

6.   DISABILITY OR DEATH

     (a) If  Executive  is unable to perform his duties  hereunder  by reason of
Disability,  the Bank may  terminate  Executive's  employment.  Termination  for
Disability shall be determined by a majority of the  disinterested  directors of
the Board,  and shall be effective thirty (30) days after written notice of such
termination is given to Executive.

     (b) For purposes of this Agreement,  "Disability" or being "Disabled" shall
be  deemed  to have  occurred  if:  (i)  Executive  is  unable  to engage in any
substantial gainful activity by reason of any medically determinable physical or
mental  impairment  that can be  expected  to  result  in  death,  or last for a
continuous  period of not less than 12 months;  (ii) by reason of any  medically
determinable  physical  or mental  impairment  that can be expected to result in
death,  or last for continuous  period of not less than 12 months,  Executive is
receiving income replacement benefits for a period of not less than three months
under an  accident  and health plan  covering  employees  of the Bank;  or (iii)
Executive  is  determined  to  be  totally   disabled  by  the  Social  Security
Administration.  If any controversy  arises as to whether Executive is Disabled,
the Board may require  that  Executive  be examined by a physician  and, in such
case,  the decision of such  physician  shall be  conclusive  and binding on all
parties. The examining physician shall be selected by the Board.

     (c)  In  the  event  the  Bank  terminates  Executive's  employment  due to
Disability, the Bank will:

          (1) At its expense Bank will provide a disability insurance policy for
     Executive.  Benefits  are  defined  in the  supplemental  senior  executive
     disability  policy  currently  in place with  Provident  Life and  Casualty
     Company,  effective  August 1, 2005. Any amendment to,  modification of, or
     replacement  of that  policy  that has been  approved  by the Board will be
     deemed to constitute  the benefit that is provided to Executive  under this
     agreement.

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          (2) Cause to be continued life and health care coverage  substantially
     identical to the coverage maintained by the Bank for Executive prior to his
     termination  for  Disability,  except to the extent  such  coverage  may be
     changed in its application to all Bank employees. This coverage shall cease
     upon the termination of payments to Executive under Section 6(c)(1) above.

     (d) In the event of Executive's death during the term of the Agreement, his
estate,  legal  representatives or named beneficiaries (as directed by executive
in writing) shall be paid  Executive's  Base Salary as defined in paragraph 3(a)
at the rate in effect at the time of  Executive's  death for a period of one (1)
year from the date of Executive's  death,  and the Bank will continue to provide
medical,  dental and other insurance  benefits normally provided for Executive's
spouse for one (1) year after Executive's death.

7.   TERMINATION UPON RETIREMENT

     Termination  by the Bank of  Executive  based on  "Retirement"  shall  mean
termination  for any reason of  Executive's  employment on or after age 65 or in
accordance with any retirement policy established with Executive's  consent with
respect to him. Upon termination of Executive upon  Retirement,  Executive shall
be  entitled to all  benefits  under any  retirement  plan of the Bank and other
plans to which Executive is a party,  but Executive shall not be entitled to any
payments  or benefits  that would be due as a result of an Event of  Termination
under Section 4 hereof.

8.   TERMINATION FOR CAUSE

     The term  "Termination  for Cause" shall mean  termination  by a vote of at
least a majority of the entire  membership of the Board  because of  Executive's
personal dishonesty,  incompetence,  willful misconduct, any 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, the willful commission of
any act  that in the  judgment  of the  Board  would  likely  cause  substantial
economic damage to the Bank or the Company or substantial injury to the business
reputation  of the Bank or the Company,  or material  breach of any provision of
this Agreement.  Executive  shall not have the right to receive  compensation or
other benefits for any period after Termination for Cause.

9.   NOTICE

     (a) Any  termination by the Bank or the Executive  shall be communicated by
Notice of  Termination  to the other party.  For purposes of this  Agreement,  a
"Notice of  Termination"  shall mean a written notice which shall:  indicate the
specific  termination  provision in this  Agreement  relied upon; in the case of
Termination  for  Cause,  include a copy of a  resolution  duly  adopted  by the
affirmative  vote of not less than a majority  of the entire  membership  of the
Board; and, set forth in reasonable  detail the facts and circumstances  claimed
to  provide  a basis for  termination  of  employment  under  the  provision  so
indicated.  "Date  of  Termination"  shall  mean  the  date  of  the  Notice  if
Termination.  If,  within thirty (30) days after any Notice of  Termination  for
Cause is given, the party receiving the Notice of Termination notifies the other
party that a dispute  exists  concerning  the  termination,  the  parties  shall
promptly  proceed to  arbitration.  Executive's  services with the Bank shall be
suspended pending resolution of such dispute by arbitration,  and the Bank shall

                                                                               8
<PAGE>

discontinue to pay Executive  compensation until the dispute is finally resolved
in  accordance  with this  Agreement.  If it is  determined  that  Executive  is
entitled to  compensation  and benefits under Sections 4 or 5 of this Agreement,
the  payment  of such  compensation  and  benefits  by the Bank  shall  commence
immediately  following the date of resolution by arbitration,  with interest due
Executive on the cash amount that would have been paid pending  arbitration  (at
the prime rate as published in The Wall Street Journal from time to time).

10.  POST-TERMINATION OBLIGATIONS

     (a) As a material  inducement  for the Bank to enter  into this  Agreement,
upon  termination of this  Agreement for any reason,  other than the reasons set
forth in Sections 5 or 6 of this  Agreement,  for a period of two (2) years from
the Date of  Termination  (one year from the  termination  of the Agreement as a
result of a Change in Control) Executive shall not at any time or place,  either
directly or indirectly,  engage in any business or activity in competition  with
the business of the Bank, or be a director, officer or employee or consultant to
any bank, savings bank, savings association or credit union, operating in Monroe
County, if such entity has assets of less than $1.0 billion.

     (b) All payments and benefits to Executive  under this  Agreement  shall be
subject to Executive's  compliance  with paragraph (c) of this Section 10 during
the term of this  Agreement  and for one (1) full year after the  expiration  or
termination hereof.

     (c) Executive shall, upon reasonable  notice,  furnish such information and
assistance  to the Bank as may  reasonably be required by the Bank in connection
with any litigation in which it or any of its  subsidiaries or affiliates is, or
may become, a party.

     (d)  Executive  recognizes  and  acknowledges  that  the  knowledge  of the
business activities and plans for business activities of the Bank and affiliates
thereof,  as it may exist from time to time,  is a valuable,  special and unique
asset of the business of the Bank.  Executive will not, during or after the term
of his  employment,  disclose  any  knowledge of the past,  present,  planned or
considered  business activities of the Bank or affiliates thereof to any person,
firm, corporation,  or other entity for any reason or purpose whatsoever (except
for such  disclosure  as may be  required to be provided to the Office of Thrift
Supervision  ("OTS"),  the Federal Deposit Insurance  Corporation  ("FDIC"),  or
other federal  banking  agency with  jurisdiction  over the Bank or  Executive).
Notwithstanding the foregoing,  Executive may disclose any knowledge of banking,
financial and/or economic principles, concepts or ideas which are not solely and
exclusively  derived from the business  plans and  activities  of the Bank,  and
Executive  may disclose any  information  regarding  the Bank which is otherwise
publicly  available.  In the event of a breach or threatened breach by Executive
of the provisions of this Section 10, the Bank will be entitled to an injunction
restraining Executive from disclosing, in whole or in part, the knowledge of the
past,  present,  planned  or  considered  business  activities  of the  Bank  or
affiliates  thereof,  or  from  rendering  any  services  to any  person,  firm,
corporation,  other entity to whom such knowledge, in whole or in part, has been
disclosed or is threatened to be disclosed.  Nothing herein will be construed as
prohibiting the Bank from pursuing any other remedies  available to the Bank for
such  breach or  threatened  breach,  including  the  recovery  of damages  from
Executive.

                                                                               9
<PAGE>

11.  EFFECT ON PRIOR AGREEMENTS AND EXISTING BENEFITS PLANS

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

12.  NO ATTACHMENT

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

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

13.  MODIFICATION AND WAIVER

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

     (b) No term or  condition  of this  Agreement  shall be deemed to have been
waived, nor shall there be any estoppel against the enforcement of any provision
of this Agreement,  except by written  instrument of the party charged with such
waiver or estoppel.  No such written waiver shall be deemed a continuing  waiver
unless specifically  stated therein,  and each such waiver shall operate only as
to the specific  term or condition  waived and shall not  constitute a waiver of
such term or condition for the future as to any act other than that specifically
waived.

14.  REQUIRED PROVISIONS

     (a) The Bank's Board of Directors may terminate  Executive's  employment at
any time,  but any  termination  by the Bank's  Board of  Directors,  other than
Termination for Cause, shall not prejudice  Executive's right to compensation or
other  benefits  under  this  Agreement.  Executive  shall not have the right to
receive  compensation  or other  benefits for any period after  Termination  for
Cause as defined in Section 8 hereinabove.

     (b) If Executive is suspended  from office  and/or  temporarily  prohibited
from participating in the conduct of the Bank's affairs by a notice served under
Section 8(e)(3) (12 U.S.C. ss.ss. 1818(e)(3)) or 8(g) (12 U.S.C. ss. 1818(g)) of
the Federal  Deposit  Insurance  Act, as amended by the  Financial  Institutions
Reform,  Recovery  and  Enforcement  Act of 1989 (the  "FDI  Act"),  the  Bank's
obligations  under this Agreement  shall be suspended as of the date of service,
unless  stayed by  appropriate  proceedings.  If the  charges  in the notice are
dismissed,  the Bank may in its  discretion (i) pay Executive all or part of the

                                                                              10
<PAGE>

compensation  withheld while their contract  obligations were suspended and (ii)
reinstate (in whole or in part) any of the obligations which were suspended.

     (c)  If   Executive  is  removed   and/or   permanently   prohibited   from
participating  in the  conduct of the Bank's  affairs by an order  issued  under
Section 8(e) (12 U.S.C.  ss.ss.  1818(e)) or 8(g) (12 U.S.C. ss. 1818(g)) of the
FDI Act, all  obligations of the Bank under this Agreement shall terminate as of
the effective date of the order,  but vested rights of the  contracting  parties
shall not be affected.

     (d) If the Bank is in default as  defined  in Section  3(x) (12 U.S.C.  ss.
1813(x)(1))  of the FDI Act, all  obligations  of the Bank under this  Agreement
shall  terminate as of the date of default,  but this paragraph shall not affect
any vested rights of the contracting parties.

     (e) All  obligations of the Bank under this Agreement  shall be terminated,
except to the extent  determined that  continuation of the contract is necessary
for the continued operation of the institution, (i) by the Director, at the time
the FDIC or the Resolution Trust Corporation enters into an agreement to provide
assistance  to or on behalf of the Bank;  or (ii) by the OTS at the time the OTS
or its  Regional  Director  approves a  supervisory  merger to resolve  problems
related to the  operations of the Bank or when the Bank is determined by the OTS
or FDIC to be in an unsafe or unsound condition.  Any rights of the parties that
have already vested, however, shall not be affected by such action.

     (f)  Any  payments  made  to  Executive  pursuant  to  this  Agreement,  or
otherwise,  are subject to and  conditioned  upon their  compliance  with 12 USC
Section 1828(k) and any regulations promulgated thereunder.

15.  SEVERABILITY

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

16.  HEADINGS FOR REFERENCE ONLY

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

17.  GOVERNING LAW

     This  Agreement  shall be governed  in all  respects,  including  validity,
construction,  capacity and  performance,  by the laws of the State of New York,
but only to the extent not superseded by federal law.

                                                                              11
<PAGE>

18.  ARBITRATION

     Any  dispute  or  controversy  arising  under or in  connection  with  this
Agreement shall be settled exclusively by arbitration,  conducted before a panel
of three  arbitrators  sitting in a location  selected by the Bank within  fifty
(50) miles of Fairport,  New York, in accordance  with the rules of the American
Arbitration  Association  then in effect.  In the event the need for arbitration
arises the Bank shall select one arbitrator  and the Executive  shall select one
arbitrator.  The  arbitrators  selected  by the  parties  shall  select  a third
arbitrator. The arbitrators shall not have any authority to add to or modify the
provisions  of  this  Agreement  in any  way.  Judgment  may be  entered  on the
arbitrators' award in any court having jurisdiction.

19.  PAYMENT OF FEES AND EXPENSES

     In the event of any dispute  between the Executive  and the Bank  regarding
this  Agreement,  whether  instituted by formal legal  proceedings or otherwise,
including any action taken by Executive in defending against any action taken by
the Bank, the  prevailing  party shall be reimbursed for all costs and expenses,
including reasonable attorney's fees, arising from such dispute,  proceedings or
actions. In the event of a settlement of such dispute, each party shall bear its
own costs and expenses.  Any  reimbursement  owed under this Section 19 shall be
paid  within  ten (10) days of the  furnishing  to the  non-prevailing  party of
written evidence of any costs or expenses incurred by the prevailing party.

20.  INDEMNIFICATION

     The Bank  shall  provide  Executive  (including  his heirs,  executors  and
administrators)   with  coverage  under  a  standard  directors'  and  officers'
liability  insurance policy at its expense,  and shall indemnify  Executive (and
his heirs,  executors and  administrators) to the fullest extent permitted under
federal law against all expenses and liabilities  reasonably  incurred by him in
connection with or arising out of any action, suit or proceeding in which he may
be  involved  by reason of his  having  been a  director  or officer of the Bank
(whether  or not he  continues  to be a  director  or  officer  at the  time  of
incurring  such  expenses or  liabilities),  such  expenses and  liabilities  to
include,  but not be limited to, judgments,  court costs and attorneys' fees and
the cost of reasonable  settlements  (such  settlements  must be approved by the
Board of Directors of the Bank).  The obligations of the Bank under this Section
20 shall be subject to 12 C.F.R. ss. 545.121.

21.  SUCCESSOR TO THE BANK

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

                                                                              12
<PAGE>

                                   SIGNATURES

     IN WITNESS  WHEREOF,  the Bank has caused this  Agreement to be executed by
its duly authorized officer, and Executive has signed this Agreement, on the day
and date first above written.

ATTEST:                                     FAIRPORT SAVINGS BANK

                                       By:   /s/ Thomas J. Hanss
-----------------------------                ---------------------------------
Secretary                                    Chairman of the Board

                                             /s/ Robert W. Sturn
                                             ---------------------------------
                                             Chairman of Compensation Committee

WITNESS:                                    EXECUTIVE:

/s/ Lowell T. Twitchell                By:   /s/ Dana Gavenda
---------------------------                  ----------------------------------
                                             Dana Gavenda

                                                                              13Exhibit 10.1

                              SEPARATION AGREEMENT

     This  Separation  Agreement (the  "Agreement") is made as of the 6th day of
April,  2009, between East Boston Savings Bank ("EBSB" or the "Bank) and Leonard
V. Siuda ("Mr. Siuda").

     In consideration  of the mutual  covenants and agreements  herein contained
and other good and valuable consideration,  the receipt and sufficiency of which
is hereby acknowledged, the parties agree as follows:

     1.    Resignation/Retirement.     Effective    April    29,    2009    (the
"Resignation/Retirement  Date"), Mr. Siuda retires from employment with the Bank
and resigns from his positions as Treasurer  and Chief  Financial  Officer,  and
from any other positions that he holds with EBSB,  Meridian  Interstate Bancorp,
Inc., Meridian Financial Services,  Inc., Meridian Charitable Foundation,  Inc.,
Hampshire First Bank, Prospect, Inc., ESOP Funding Corp., or any other affiliate
of EBSB.  If so  requested  by the  Bank,  Mr.  Siuda  shall  sign any  document
reasonably requested by the Bank to confirm any such actions.

     2. Accrued  Compensation.  On April 29, 2009,  the Bank shall pay Mr. Siuda
(a)   $5,603.48   for  all  salary   earned  but  not  yet  paid   through   the
Resignation/Retirement  Date, and (b) the amount of $8,685.39 in payment for his
12.4 accrued but unused vacation days.

     3. Employment  Agreement - Salary  Continuation.  In consideration  for Mr.
Siuda's  release  of claims  set forth in  Section  10 below and the  execution,
delivery and  non-revocation  by Mr. Siuda of a second  release of claims in the
form  of  Exhibit  A  hereto  (the   "Second   Release")   no  sooner  than  the
Resignation/Retirement   Date   and  no   later   than   30   days   after   the
Resignation/Retirement Date, the Bank agrees to pay Mr. Siuda an amount equal to
$364,226 in equal  installments  over 24 months  pursuant to Section 6(e) of the
December  29,  2003  Employment  Agreement  between  Mr.  Siuda  and  EBSB  (the
"Employment Agreement"),  subject to the provisions of Section 7 below, with the
first payment  commencing on October 30, 2009. The first payment made on October
30,  2009 shall  include a catch-up  payment  covering  amounts  that would have
otherwise  been paid during April 30, 2009 through  October 29, 2009 but for the
six-month  delay  due to the  application  of  Section  409A  of  the  Code,  as
referenced  in  Section  7  of  this  Agreement.  Mr.  Siuda's  post-termination
obligations under the Employment  Agreement,  including but not limited to those
set forth in Section 7 thereof,  shall remain in full force and effect following
the Resignation/Retirement Date.

     4. Supplemental  Executive Retirement  Agreement.  The Amended and Restated
Supplemental Executive Retirement Agreement between Mr. Siuda and EBSB, dated as
of January 1, 2007 (the "SERP"), remains in full force and effect. Mr. Siuda has
elected to have the Bank pay his SERP benefits in a lump sum payment pursuant to
Section  2(d) of the SERP,  in an amount  equal to  $1,281,818  as adjusted  for
interest  calculated at the Prime Rate as reported in The Wall Street Journal on
May 1, 2009 for the period beginning on May 1, 2009 and ending October 29, 2009,
subject to the  provisions  of Section 6 below,  with the lump sum payment to be
made on October 30, 2009.

     5. Split Dollar and Bank Owned Life Insurance.  The Split Dollar  Agreement
between Mr.  Siuda and EBSB,  dated  December  29, 2003 (the "SDA") and the Bank

<PAGE>

Owned Life Insurance covering Mr. Siuda, remain in full force and effect, and it
is acknowledged  that the SDA and Bank Owned Life Insurance each provide a death
benefit equal to $455,283 and  $364,226,  respectively,  payable to Mr.  Siuda's
beneficiary upon his death.

     6. Death.  In the event of Mr.  Siuda's  death before all payments are made
pursuant to Sections 2, 3 and 4 of this Agreement,  all payments will be made to
Mr. Siuda's beneficiary, as identified in the SDA, at the same time the payments
would  have been made if Mr.  Siuda had not died,  subject  to Section 7 of this
Agreement.

     7.  Section  409A.  EBSB  has  determined  that Mr.  Siuda is a  "specified
employee" within the meaning of Section 409A(a)(2)(B)(i) of the Internal Revenue
Code (the  "Code").  Because  the salary  continuation  payments  referenced  in
Section 3 above and the lump sum  distribution  that Mr. Siuda has elected under
his SERP referenced in Section 4 above will be considered deferred  compensation
subject to Section 409A of the Code,  such  payments  shall not be payable until
the date that is the earlier of (i) six months and one day after his  separation
from service,  or (ii) Mr. Siuda's death.  The first salary  continuation  shall
include a catch-up  payment covering amounts that would otherwise have been paid
during the six-month  period but for the application of this provision,  and the
balance of the  installments  shall be payable in accordance with their original
schedule.

     8.  Taxation  of  Payments  and  Benefits.  EBSB  shall  undertake  to make
deductions,  withholdings  and tax reports with respect to payments and benefits
under this Agreement to the extent that it reasonably and in good faith believes
that it is  required  to make such  deductions,  withholdings  and tax  reports.
Payments under this Agreement  shall be in amounts net of any such deductions or
withholdings.  Except  to  the  extent  otherwise  specified,  nothing  in  this
Agreement  shall be construed to require EBSB to make any payments to compensate
Mr. Siuda for any adverse tax effect associated with any payments or benefits or
for any deduction or withholding from any payment or benefit.

     9. Health  Insurance and Other Benefits.  EBSB shall provide Mr. Siuda with
the right to continue  group  medical and dental  insurance  coverage  after the
Resignation/Retirement Date, at his own expense, under the law known as "COBRA."
The terms for that  opportunity  will be set forth in a separate written notice.
The Bank agrees to maintain or cause to be maintained  in effect,  and to pay or
cause to be paid the  applicable  premiums  under,  the long term care  policies
currently in effect for Mr. Siuda and his spouse (UNUM Policy Nos. LAC716035 and
LAC716037) respectively,  until their respective deaths. Mr. Siuda's eligibility
to participate  in any other employee  benefit plans and programs of the Company
ceases on or after the Resignation/Retirement Date in accordance with applicable
benefit plan or program terms.

     10. Release of Claims. Mr. Siuda acknowledges that, pursuant to 6(e) of the
Employment  Agreement,  he is required to execute a release of any and all legal
claims in a form  satisfactory to the Bank as a condition of his eligibility for
salary continuation payments under said Section 7(e). Accordingly, Mr. Siuda, in
consideration  for said salary  continuation  payments  (which are referenced in
Section 3 above),  to which he  acknowledges he otherwise would not be entitled,
voluntarily releases and forever discharges the Bank, its affiliated and related
entities  (including  Meridian  Interstate  Bancorp,  Inc.,  Meridian  Financial
Services,  Inc., Meridian  Charitable  Foundation,  Inc.,  Hampshire First Bank,
Prospect,  Inc. and ESOP Funding Corp.), its and their respective  predecessors,

                                       2
<PAGE>

successors  and assigns,  its and their  respective  employee  benefit plans and
fiduciaries  of such  plans,  and the current  and former  officers,  directors,
shareholders,  employees,  attorneys,  accountants  and  agents  of  each of the
foregoing in their official and personal capacities (collectively referred to as
the  "Releasees")  generally  from  all  claims,  demands,  debts,  damages  and
liabilities of every name and nature,  known or unknown  ("Claims")  that, as of
the date when he signs this  Agreement,  Mr. Siuda has,  ever had, now claims to
have or ever  claimed  to have had  against  any or all of the  Releasees.  This
release includes, without limitation, all Claims:

o    relating to Mr. Siuda's  employment by and  termination of employment  with
     the Bank and any of its affiliated and related entities;
o    of wrongful discharge;
o    of breach of contract;
o    of  discrimination  or  retaliation  under  federal,  state  or  local  law
     (including, without limitation, Claims of age discrimination or retaliation
     under the Age Discrimination in Employment Act);
o    under any other federal or state statute;
o    of defamation or other torts;
o    of violation of public policy;
o    for wages, bonuses, incentive compensation,  stock, stock options, vacation
     pay or any other compensation or benefits; and
o    for damages or other remedies of any sort,  including,  without limitation,
     compensatory  damages,  punitive damages,  injunctive relief and attorney's
     fees;

provided,  however, that this release shall not affect Mr. Siuda's vested rights
under the Bank's  Section  401(k) plan,  his rights under this Agreement and the
agreements  referenced in Sections 4 and 5 of this Agreement,  or any rights Mr.
Siuda may have to  indemnification  under the  Bank's  by-laws  or  Directors  &
Officers Liability policy. In addition,  this release shall not affect the grant
of 3,000  restricted  stock  awards and 15,000  stock  options made on March 27,
2009,  pursuant to necessary  corporate  approvals,  and such awards and options
shall  continue to vest as if Mr. Siuda were still an active  employee  with the
Bank subject to a vesting schedule that is typically used for similarly situated
executives.

     Mr.  Siuda  agrees that he shall not accept  damages of any  nature,  other
equitable or legal remedies for his own benefit,  attorney's fees, or costs from
any of the Releasees with respect to any Claim released by this Agreement.  As a
material  inducement  to the  Bank to  enter  into  this  Agreement,  Mr.  Siuda
represents  that he has not  assigned to any third  party any Claim  released by
this Agreement.

     11. Return of Property.  All documents,  records, data, equipment and other
physical property,  whether or not pertaining to Confidential Information,  that
have  been  or are in the  future  furnished  to Mr.  Siuda  by the  Bank or are
produced by Mr. Siuda in connection with his employment or other engagement will
be and remain the sole  property of the Bank.  Mr.  Siuda shall  return all such
materials and property by the  Resignation/Retirement  Date, pursuant to Section
7(c) of his Employment Agreement.

                                       3
<PAGE>

     12.  Nondisparagement.  Mr. Siuda shall not at any time,  either  before or
after the  Resignation/Retirement  Date, make or cause to be made any derogatory
or disparaging  statement to anyone about EBSB or any of its affiliates,  its or
their products or services,  its or their financial  condition or proposals,  or
about any of the directors, officers or employees of EBSB or its affiliates. Mr.
Siuda  represents to the Bank that he has not made or caused to be made any such
statement prior to entering into this Agreement.  The provisions of this section
shall not be  construed  to  affect  the  obligations  of Mr.  Siuda to  testify
truthfully in any legal  proceeding or to provide  truthful  information  in any
government investigation.

     13.  Announcements  re: Mr. Siuda's  Retirement/Resignation.  The Bank will
issue  an   internal   announcement   to   employees   regarding   Mr.   Siuda's
retirement/resignation in the form set forth in Exhibit B hereto.

     14. Integration.  This Agreement and the Employment  Agreement (as modified
hereby),  the  SERP (as  modified  hereby)  and the SDA  constitute  the  entire
agreement  between the parties and  supersede all prior  agreements  between the
parties.  Mr.  Siuda  acknowledges  that this  Agreement  resolves  all  matters
concerning his employment  separation,  including without limitation  separation
compensation.

     15. Assignment; Successors and Assigns, etc. The Bank may assign its rights
under  this  Agreement  in the  event  that it shall  effect  a  reorganization,
consolidate with or merge into any other corporation,  partnership, organization
or other  entity,  or transfer all or  substantially  all of its  properties  or
assets to any other corporation, partnership, organization or other entity. This
Agreement  shall inure to the benefit of and be binding  upon Mr.  Siuda and the
Bank and each party's respective successors,  executors,  administrators,  heirs
and permitted assigns.

     16.  Enforceability.   If  any  portion  or  provision  of  this  Agreement
(including,  without limitation, any portion or provision of any section of this
Agreement)  shall to any extent be declared  illegal or unenforceable by a court
of  competent  jurisdiction,  then  the  remainder  of  this  Agreement,  or the
application of such portion or provision in circumstances other than those as to
which it is so declared illegal or unenforceable, shall not be affected thereby,
and each portion and provision of this Agreement  shall be valid and enforceable
to the fullest extent permitted by law.

     17.  Waiver.  No waiver of any provision  hereof shall be effective  unless
made in writing and signed by the waiving party.  The failure of either party to
require the  performance  of any term or  obligation of this  Agreement,  or the
waiver by either  party of any breach of this  Agreement,  shall not prevent any
subsequent  enforcement  of such term or obligation or be deemed a waiver of any
subsequent breach.

     18.  Notices.  Except for the notice  referred to in Section 22 below,  any
notices,  requests,  demands  and  other  communications  provided  for by  this
Agreement shall be sufficient if in writing and delivered in person or sent by a
nationally  recognized  overnight  courier service or by registered or certified
mail,  postage  prepaid,  return  receipt  requested,  to Mr.  Siuda at the last
address he has filed in writing  with EBSB or, in the case of EBSB,  at its main
offices,  attention of the CEO.  Delivery by overnight  courier service shall be
effective on the first  business day after  mailing.  Delivery by  registered or

                                       4
<PAGE>

certified mail shall be effective  three days after mailing.  Delivery in person
shall be effective upon delivery.

     19. Amendment.  This Agreement may be amended or modified only by a written
instrument  signed by Mr. Siuda and by a duly authorized  representative  of the
Bank.

     20. Governing Law. This is a Massachusetts  contract and shall be construed
under  and be  governed  in all  respects  by the  laws of the  Commonwealth  of
Massachusetts,  without giving effect to the conflict of laws principles of such
Commonwealth. With respect to any disputes concerning federal law, such disputes
shall be determined in accordance  with the law as it would be  interpreted  and
applied by the United States Court of Appeals for the First Circuit.

     21. Consideration of Agreement.  Mr. Siuda acknowledges that he has had the
opportunity, if he so desired, to take up to 21 days to consider this Agreement.
Mr. Siuda agrees that any  modifications,  material or  otherwise,  made to this
Agreement  do  not  restart  or  affect  in  any  manner  the  original  21  day
consideration period. Mr. Siuda further acknowledges that he has been advised to
consult with an attorney prior to executing this Agreement. Mr. Siuda represents
that he has carefully read and reviewed this Agreement, fully understands all of
its terms and conditions,  has not relied upon any other  representations by the
Bank or the  employees  or  agents  of the  Bank  concerning  the  terms of this
Agreement, and is knowingly and voluntarily executing this Agreement.

     22. Revocation Period. Mr. Siuda will have seven days following his signing
of this  Agreement in which to revoke this  Agreement by a written  notice to be
received by EBSB's counsel,  Lawrence  Spaccasi,  Luse Gorman Pomerenk & Schick,
P.C., 5335 Wisconsin Avenue, NW, Suite 400,  Washington,  DC 20015 no later than
the end of such  seven-day  period.  This Agreement  shall not become  effective
until the revocation period has expired.

     23.  Counterparts.  This  Agreement  may  be  executed  in  any  number  of
counterparts,  each of which when so executed and delivered shall be taken to be
an  original.  Such  counterparts  shall  together  constitute  one and the same
document.

     IN WITNESS WHEREOF,  the parties have executed this Agreement  effective on
the date and year first above written.

                                   EAST BOSTON SAVINGS BANK

                                   By: /s/ Richard Gavegnano
                                      -----------------------------------------
                                      Richard Gavegnano
                                   Its: Chairman and Chief Executive Officer

                                   /s/ Leonard V. Siuda
                                   ----------------------------------------
                                   LEONARD V. SIUDA

                                       5
<PAGE>

                                    EXHIBIT A

                           General Release of Claims.
                           -------------------------

     I, Leonard V. Siuda,  acknowledge that, pursuant to 6(e) of my December 29,
2003  Employment  Agreement  with East Boston  Savings Bank (the  "Bank"),  I am
required to execute a release of any and all legal claims in a form satisfactory
to the Bank as a condition of my eligibility  for salary  continuation  payments
under  said  Section  6(e).  Accordingly,   in  consideration  for  such  salary
continuation  payments  (which are  referenced in Section 3 of the April 6, 2009
Separation Agreement between me and the Bank (the "Separation  Agreement")),  to
which I acknowledge I otherwise would not be entitled, I voluntarily release and
forever  discharge the Bank,  its  affiliated  and related  entities  (including
Meridian Interstate Bancorp,  Inc., Meridian Financial Services,  Inc., Meridian
Charitable  Foundation,  Inc.,  Hampshire  First Bank,  Prospect,  Inc. and ESOP
Funding Corp.), its and their respective  predecessors,  successors and assigns,
its and their  respective  employee benefit plans and fiduciaries of such plans,
and  the  current  and  former  officers,  directors,  shareholders,  employees,
attorneys, accountants and agents of each of the foregoing in their official and
personal capacities (collectively referred to as the "Releasees") generally from
all claims,  demands,  debts,  damages and liabilities of every name and nature,
known or unknown  ("Claims")  that, as of the date when I sign this  release,  I
have, ever had, now claim to have or ever claimed to have had against any or all
of the Releasees. This release includes, without limitation, all Claims:

o    relating to my employment by and  termination  of employment  with the Bank
     and any of its affiliated and related entities;
o    of wrongful discharge;
o    of breach of contract;
o    of  retaliation  or  discrimination  under  federal,  state  or  local  law
     (including, without limitation, Claims of age discrimination or retaliation
     under the Age Discrimination in Employment Act);
o    under any other federal or state statute;
o    of defamation or other torts;
o    of violation of public policy;
o    for wages, bonuses, incentive compensation,  stock, stock options, vacation
     pay or any other compensation or benefits; and
o    for damages or other remedies of any sort,  including,  without limitation,
     compensatory  damages,  punitive damages,  injunctive relief and attorney's
     fees;

provided, however, that this release shall not affect my rights under the Bank's
Section  401(k)  plan,  my  rights  under  this  Agreement  and  the  agreements
referenced  in Sections 4 and 5 of the  Separation  Agreement,  any rights I may
have to  indemnification  under the  Bank's  by-laws  or  Directors  &  Officers
Liability  policy,  or  any  rights  I  may  have  solely  in my  capacity  as a
stockholder of Meridian  Interstate  Bancorp,  Inc. and Hampshire First Bank. In
addition,  this  release  shall not affect the grant of 3,000  restricted  stock
awards and 15,000 stock  options  made on March 27, 2009,  pursuant to necessary
corporate  approvals,  and such awards and options shall  continue to vest as if

<PAGE>

Mr.  Siuda  were  still an active  employee  with the Bank  subject to a vesting
schedule that is typically used for similarly situated executives.

     I agree that I shall not accept damages of any nature,  other  equitable or
legal  remedies for my own benefit,  attorney's  fees,  or costs from any of the
Releasees with respect to any Claim released hereby. As a material inducement to
the Bank to make the  salary  continuation  payments  under  Section  6(e) of my
Employment  Agreement,  I represent  that I have not assigned to any third party
any Claim released hereby.

     I have had the  opportunity  to consider this Release for  twenty-one  (21)
days  before  signing  it.  If I have  signed  this  Release  within  less  than
twenty-one (21) days of the date of its delivery to me, I acknowledge by signing
this  Release  that such  decision  was  entirely  voluntary  and that I had the
opportunity to consider this Release for the entire  twenty-one (21) day period.
For the period of seven (7) days from the date when I sign this Release,  I have
the right to revoke  this  Release  by  written  notice to the  Bank's  counsel,
Lawrence Spaccasi,  Luse Gorman Pomerenk & Schick,  P.C., 5335 Wisconsin Avenue,
NW, Suite 400, Washington,  DC 20015. For such a revocation to be effective,  it
must  be  delivered  so  that it is  received  by Mr.  Spaccasi  or  before  the
expiration of the seven (7) day revocation period. This Release shall not become
effective or enforceable during the revocation period. This Release shall become
effective on the first  business day following the  expiration of the revocation
period.

     I  understand  that this  Release  is a  legally  binding  document  and my
signature will commit me to its terms. I acknowledge that I have been advised by
the Bank to discuss all aspects of this Release with my attorney, that I have in
fact retained a personal  attorney who has reviewed this Release and represented
me concerning  it, that I have  carefully  read and fully  understand all of the
provisions of this Release and that I am knowingly and voluntarily  signing this
Release.

     In  signing  this   Release,   I  am  not  relying  upon  any  promises  or
representations  made by anyone at or on  behalf  of the  Bank,  other  than the
promises set forth in the Separation Agreement.

         You are advised to consult with an attorney before signing this
Release.

/s/ Leonard V. Siuda
-----------------------------------
Leonard V. Siuda

Dated: April 6, 2009

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