Document:

ex10-4.htm

     

    
 

    NEW
ENGLAND BANCSHARES, INC.

    AMENDED
AND RESTATED EMPLOYMENT AGREEMENT

    

    This Amended and Restated Employment
Agreement (the “Agreement”) by and between New England Bancshares, Inc., a
Maryland corporation (the “Company”) and David J. O’Connor (the “Executive”) is
made effective as of July 13, 2009. References to the “Bank” herein shall mean
New England Bank, a wholly owned subsidiary of the Company.

    

    W
I T N E S S E T H

    

    WHEREAS, the Company and the
Executive are currently parties to an amended and restated employment agreement
originally entered into as of December 28, 2005 and further amended on November
12, 2008 (the “Employment Agreement”);

    

    WHEREAS, Enfield Federal
Savings and Loan Association, a former subsidiary of the Company, has merged
into Valley Bank, a subsidiary of the Company, and pursuant to the merger Valley
Bank changed its name to New England Bank; and

    

    WHEREAS, the Company and the
Executive desire to amend and restate the Employment Agreement in order to
reflect the new name of the Bank.

    

    NOW, THEREFORE, in
consideration of the promises and mutual covenants herein contained, the parties
hereby agree as follows:

    

    1.       
    Employment.  Executive is
employed as the President and Chief Executive Officer of the
Company.  Executive shall perform all duties and shall have all powers
which are commonly incident to the offices of President and Chief Executive
Officer of the Company or which, consistent with those offices, are delegated to
him by the Board of Directors of the Company.  During the term of this
Agreement, Executive also agrees to serve, if elected, as an officer and/or
director of any subsidiary of the Company and in such capacity carry out such
duties and responsibilities reasonably appropriate to that office.

    

    2.    
       Location
and Facilities.  The Executive
will be furnished with the working facilities and staff customary for executive
officers with the title and duties set forth in Section 1 and as are necessary
for him to perform his duties.  The location of such facilities and
staff shall be at the principal administrative offices of the Company, or at
such other site or sites customary for such offices.

    

    3.      
     Term.

    

    The
period of Executive’s employment under this Agreement shall be deemed to have
commenced as of the date written above and shall continue for a period of
thirty-six (36) full calendar months, provided, however, that all changes
intended to comply with Code Section 409A shall be effective retroactively to
December 28, 2005; and provided further, that no retroactive changes shall
affect the

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    compensation
or benefits previously provided to the Executive. The term of this Agreement
shall be extended for one day each day so that a constant thirty-six (36)
calendar month term shall remain in effect, until such time as the Board of
Directors of the Company (the “Board”) or Executive elects not to extend the
term of the Agreement by giving written notice to the other party in accordance
with the terms of this Agreement, in which case the term of this Agreement shall
be fixed and shall end on the third anniversary of the date of such written
notice.

    

    4.           Base
Compensation.

    

    
      	
               
      

            	
              a.

            	
              The
      Company agrees to pay the Executive during the term of this Agreement a
      base salary at the rate of $310,500 per year, payable
      in accordance with customary payroll
practices.

            

    

    

    
      	
               
      

            	
              b.

            	
              The
      Board shall review annually the rate of the Executive’s base salary based
      upon factors they deem relevant, and may maintain or increase his salary,
      provided that no such action shall reduce the rate of salary below the
      rate in effect on the Effective
Date.

            

    

    

    
      	
               
      

            	
              c.

            	
              In
      the absence of action by the Board, the Executive shall continue to
      receive salary at the annual rate specified on the Effective Date or, if
      another rate has been established under the provisions of this Section 4,
      the rate last properly established by action of the Board under the
      provisions of this Section 4.

            

    

    

    5.           Bonuses.  The Executive
shall be entitled to participate in discretionary bonuses or other incentive
compensation programs that the Company may award from time to time to senior
management employees pursuant to bonus plans or otherwise.  Any
bonuses or other payments made pursuant to this Section 5 shall be paid promptly
by the Company and in any event no later than March 15 of the year immediately
following the end of the calendar year for which such amounts were
payable.

    

    6.           Benefit
Plans.  The Executive
shall be entitled to participate in such life insurance, medical, dental,
pension, profit sharing, retirement and stock-based compensation plans and other
programs and arrangements as may be approved from time to time by the Company
and the Company for the benefit of their employees.

    

    7.           Vacation and
Leave.

    

    
      	
               
      

            	
              a.

            	
              The
      Executive shall be entitled to vacation and other leave in accordance with
      policy for senior executives, or otherwise as approved by the
      Board.

            

    

    

    
      	
               
      

            	
              b.

            	
              In
      addition to paid vacation and other leave, the Executive shall be
      entitled, without loss of pay, to absent himself voluntarily from the
      performance of his employment for such additional periods of time and for
      such valid and legitimate

            

    

    
      
         

      

      
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    reasons
as the Board may in its discretion determine.  Further, the Board may
grant to the Executive a leave or leaves of absence, with or without pay, at
such time or times and upon such terms and conditions as the Board in its
discretion may determine.

    

    8.       
    Expense
Payments and Reimbursements.  The Executive
shall be reimbursed for all reasonable out-of-pocket business expenses that he
shall incur in connection with his services under this Agreement upon
substantiation of such expenses in accordance with applicable policies of the
Company.  Such reimbursements shall be paid promptly by the Company
and in any event not later than March 15 of the year immediately following the
end of the calendar year in which the Executive incurred such
expense.

     
 

    9.     
      Automobile
Allowance.  During the term
of this Agreement, the Executive shall be entitled to an automobile allowance on
terms no less favorable that those in effect immediately prior to the execution
of this Agreement.  Executive shall comply with reasonable reporting
and expense limitations on the use of such automobile as may be established by
the Company or the Bank from time to time, and the Company or the Bank shall
annually include on Executive’s Form W-2 any amount of income attributable to
Executive’s personal use of such automobile.  Payments, if any, made
under this Section 9 shall be paid promptly by the Company and in any event not
later than March 15 of the year immediately following the end of the calendar
year in which the expense was incurred.

    

    10.           Loyalty and
Confidentiality.

    

    
      	
               
      

            	
              a.

            	
              During
      the term of this Agreement Executive:  (i) shall devote all his
      time, attention, skill, and efforts to the faithful performance of his
      duties hereunder; provided, however, that from time to time, Executive may
      serve on the boards of directors of, and hold any other offices or
      positions in, companies or organizations which will not present any
      conflict of interest with the Company or any of their subsidiaries or
      affiliates, unfavorably affect the performance of Executive’s duties
      pursuant to this Agreement, or violate any applicable statute or
      regulation and (ii) shall not engage in any business or activity
      contrary to the business affairs or interests of the
    Company.

            

    

    

    
      	
               
      

            	
              b.

            	
              Nothing
      contained in this Agreement shall prevent or limit Executive’s right to
      invest in the capital stock or other securities of any business dissimilar
      from that of the Company, or, solely as a passive, minority investor, in
      any business.

            

    

    

    
      	
               
      

            	
              c.

            	
              Executive
      agrees to maintain the confidentiality of any and all information
      concerning the operation or financial status of the Company and the
      Company; the names or addresses of any of its borrowers, depositors and
      other customers; any information concerning or obtained from such
      customers; and any other information concerning the Company and the
      Company to which he may be exposed during the course of his
      employment.  The Executive further agrees
  that,

            

    

    
      
         

      

      
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    unless
required by law or specifically permitted by the Board in writing, he will not
disclose to any person or entity, either during or subsequent to his employment,
any of the above-mentioned information which is not generally known to the
public, nor shall he employ such information in any way other than for the
benefit of the Company and the Company.

    

    11.           Termination
and Termination Pay.  Subject to
Section 12 of this Agreement, Executive’s employment under this Agreement may be
terminated in the following circumstances:

    

    
      	
               
      

            	
              a.

            	
              Death.  Executive’s
      employment under this Agreement shall terminate upon his death during the
      term of this Agreement, in which event Executive’s estate shall be
      entitled to receive the compensation due to the Executive through the last
      day of the calendar month in which his death
  occurred.

            

    

    

    
      	
               
      

            	
              b.

            	
              Retirement.  This
      Agreement shall be terminated upon Executive’s retirement under the
      retirement benefit plan or plans in which he participates pursuant to
      Section 6 of this Agreement or
otherwise.

            

    

    

    
      	
               
      

            	
              c.

            	
              Disability.

            

    

    

    
      	
               
      

            	
              i.

            	
              The
      Board or Executive may terminate Executive’s employment after having
      determined Executive has a Disability.  For these purposes, the
      Executive shall be deemed to have a “Disability” in any case in which it
      is determined that the Executive (a) is unable to engage in any
      substantial gainful activity by reason of any medically determinable
      physical or mental impairment which can be expected to result in death, or
      last for a continuous period of not less than 12 months; (b) by reason of
      any medically determinable physical or mental impairment which can be
      expected to result in death, or last for a continuous period of not less
      than 12 months, 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 (c) is totally disabled by the Social Security
      Administration.

            

    

    

    
      	
               
      

            	
              ii.

            	
              In
      the event of such Disability, Executive’s obligation to perform services
      under this Agreement will terminate.  The Company or the Bank
      will pay Executive, as Disability pay, an amount equal to 100% of
      Executive’s bi-weekly rate of base salary in effect as of the date of his
      termination of employment due to Disability.  Disability
      payments will be made on a monthly basis and will commence on the first
      day of the month following the effective date of Executive’s termination
      of employment for Disability and end on the earlier of: (A) the date he
      returns to full-time employment at the Company in the same capacity as he
      was employed prior to his

            

    

    
      
         

      

      
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    termination
for Disability; (B) his death; or (C) upon attainment of age 65.  Such
payments shall be reduced by the amount of any short- or long-term disability
benefits payable to the Executive under any other disability programs sponsored
by the Company or the Bank.  In addition, during any period of
Executive’s Disability, Executive and his dependents shall, to the greatest
extent possible, continue to be covered under all benefit plans (including,
without limitation, non-taxable medical, dental and life insurance plans) of the
Company or the Bank, in which Executive participated prior to his Disability on
the same terms as if Executive were actively employed by the
Company.

    

    
      	
               
      

            	
              d.

            	
              Termination for
      Cause.

            

    

    

    
      	
               
      

            	
              i.

            	
              The
      Board may, by written notice to the Executive in the form and manner
      specified in this paragraph, terminate his employment at any time, for
      “Cause”.  The Executive shall have no right to receive
      compensation or other benefits for any period after termination for
      Cause.  Termination for “Cause” shall mean termination because
      of, in the good faith determination of the Board,
    Executive’s:

            

    

    

    
      	
               
      

            	
              (1)

            	
              Personal
      dishonesty;

            

    

    

    
      	
               
      

            	
              (2)

            	
              Incompetence;

            

    

    

    
      	
               
      

            	
              (3)

            	
              Willful
      misconduct;

            

    

    

    
      	
               
      

            	
              (4)

            	
              Breach
      of fiduciary duty involving personal
profit;

            

    

    

    
      	
               
      

            	
              (5)

            	
              Intentional
      failure to perform stated duties;

            

    

    

    
      	
               
      

            	
              (6)

            	
              Willful
      violation of any law, rule or regulation (other than traffic violations or
      similar offenses) that reflects adversely on the reputation of the Company
      and the Company, any felony conviction, any violation of law involving
      moral turpitude or any violation of a final cease-and-desist order;
      or

            

    

    

    
      	
               
      

            	
              (7)

            	
              Material
      breach by Executive of any provision of this
  Agreement.

            

    

    

    
      	
               
      

            	
              ii.

            	
              Notwithstanding
      the foregoing, Executive shall not be deemed to have been terminated for
      Cause by the Company unless there shall have been delivered to Executive a
      copy of a resolution duly adopted at a meeting of such Board where in the
      good faith opinion of the Board, Executive was guilty of the conduct
      described above and specifying the particulars
  thereof.

            

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              e.

            	
              Voluntary Termination
      by Executive.  In addition to his other rights to
      terminate under this Agreement, Executive may voluntarily terminate
      employment during the term of this Agreement upon at least sixty (60) days
      prior written notice to the Boards, in which case Executive shall receive
      only his compensation, vested rights and employee benefits up to the date
      of his termination.

            

    

    

    
      	
               
      

            	
              f.

            	
              Without Cause or With
      Good Reason.

            

    

    

    
      	
               
      

            	
              i.

            	
              In
      addition to termination pursuant to Sections 11(a) through 11(e) the
      Boards, may, by written notice to Executive, immediately terminate his
      employment at any time for a reason other than Cause (a termination
      “Without Cause”) and Executive may, by written notice to the Board,
      immediately terminate this Agreement at any time for “Good Reason” as
      defined below.

            

    

    

    
      	
               
      

            	
              ii.

            	
              Subject
      to Section 12 of this Agreement, in the event of termination under this
      Section 11(f), Executive shall be entitled to receive an amount equal to
      (i) his base salary for the remaining term of the Agreement, and (ii) the
      value of the benefits he would have received during the remaining term of
      the Agreement under any retirement programs (whether tax-qualified or
      non-qualified) in which Executive participated prior to his termination
      (with the amount of the benefits determined by reference to the benefits
      received by the Executive or accrued on his behalf under such programs
      during the twelve (12) months preceding his termination), payable as a
      single cash lump sum distribution within ten (10) calendar days following
      such termination.  In addition, the Executive shall continue to
      participate in any benefit plans of the Company or Bank that provide life
      insurance and non-taxable medical and dental insurance, or similar
      coverage upon terms no less favorable than the most favorable terms
      provided to senior executives of the Company during such
      period.  In the event that the Company or the Bank is unable to
      provide such coverage by reason of Executive no longer being an employee,
      the Company shall pay the Executive the value of such benefits in a single
      cash lump sum distribution within ten (10) calendar days following his
      termination.

            

    

    

    
      	
               
      

            	
              iii.

            	
              “Good
      Reason” shall exist if, without Executive’s express written consent, the
      Company materially breach any of their respective obligations under this
      Agreement.  Without limitation, such a material breach shall be
      deemed to occur upon any of the
following:

            

    

    

    
      	
               
      

            	
              (1)

            	
              A
      material reduction in Executive’s responsibilities or authority in
      connection with his employment with the
Company;

            

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (2)

            	
              Assignment
      to Executive of duties of a non-executive nature or duties for which he is
      not reasonably equipped by his skills and
  experience;

            

    

    

    
      	
               
      

            	
              (3)

            	
              Failure
      of the Executive to be nominated or re-nominated to the
    Board

            

    

    

    
      	
               
      

            	
              (4)

            	
              A
      material reduction in Executive’s salary or benefits contrary to the terms
      of this Agreement, or, following a Change in Control as defined in Section
      12 of this Agreement, any reduction in salary or material reduction in
      benefits below the amounts to which he was entitled prior to the Change in
      Control;

            

    

    

    
      	
               
      

            	
              (5)

            	
              Termination
      of incentive and benefit plans, programs or arrangements, or reduction of
      Executive’s participation to such an extent as to materially reduce their
      aggregate value below their aggregate value as of the Effective
      Date;

            

    

    

    
      	
               
      

            	
              (6)

            	
              A
      requirement that Executive relocate his principal business office or his
      principal place of residence outside of the area consisting of a
      twenty-five (25) mile radius from the current main office and any branch
      of the Company, or the assignment to Executive of duties that would
      reasonably require such a relocation;
or

            

    

    

    
      	
               
      

            	
              (7)

            	
              Liquidation
      or dissolution of the Company or the Company, other than liquidations or
      dissolutions that are caused by reorganizations that do not negatively
      affect the status of the Executive,

            

    

     

    provided,
however, that prior to any termination of employment for Good Reason (a
termination “With Good Reason”), the Executive must first provide written notice
to the Company within ninety (90) days following the initial existence of the
condition, describing the existence of such condition, and the Company shall
thereafter have the right to remedy the condition within thirty (30) days of the
date the Company received the written notice from the Executive.  If
the Company remedies the condition within such thirty (30) day cure period, then
no Good Reason shall be deemed to exist with respect to such
condition.  If the Company does not remedy the condition within such
thirty (30) day cure period, then the Executive may deliver a Notice of
Termination for Good Reason at any time within sixty (60) days following the
expiration of such cure period.

     

    
      	
               
      

            	
              iv.

            	
              Notwithstanding
      the foregoing, a reduction or elimination of the Executive’s benefits
      under one or more benefit plans maintained by the Company or the Company
      as part of a good faith, overall reduction
or

            

    

    
      
         

      

      
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    elimination
of such plans or plans or benefits thereunder applicably to all participants in
a manner that does not discriminate against Executive (except as such
discrimination may be necessary to comply with law) shall not constitute an
event of Good Reason or a material breach of this Agreement, provided that
benefits of the type or to the general extent as those offered under such plans
prior to such reduction or elimination are not available to other officers of
the Company or any company that controls the Company under a plan or plans in or
under which Executive is not entitled to participate.

     

    
      	
               
      

            	
              v.

            	
              For
      purposes of this Agreement, any termination of Executive’s employment
      shall be construed to require a “Separation from Service” in accordance
      with Code Section 409A and the regulations promulgated thereunder, such
      that the Company and Executive reasonably anticipate that the level of
      bona fide services Executive would perform after termination would
      permanently decrease to a level that is less than 50% of the average level
      of bona fide services performed (whether as an employee or an independent
      contractor) over the immediately preceding thirty-six (36) month
      period.

            

    

    

    
      	
               
      

            	
              g.

            	
              Continuing Covenant
      Not to Compete or Interfere with
      Relationships.  Regardless of anything herein to the
      contrary, following a termination by the Company or Executive pursuant to
      Section 11(f):

            

    

    

    
      	
               
      

            	
              i.

            	
              Executive’s
      obligations under Section 10(c) of this Agreement will continue in effect;
      and

            

    

    

    
      	
               
      

            	
              ii.

            	
              During
      the period ending on the first anniversary of such termination, the
      Executive shall not serve as an officer, director or employee of any bank
      holding company, bank, savings bank, savings and loan holding company, or
      mortgage company (any of which, a “Financial Institution”) which Financial
      Institution offers products or services competing with those offered by
      the Company from any office within fifty (50) miles from the main office
      or any branch of the Company and shall not interfere with the relationship
      of the Company and the Company and any of its employees, agents, or
      representatives.

            

    

    

    12.           Termination in Connection
with a Change in Control.

    

    
      	
               
      

            	
              a.

            	
              For
      purposes of this Agreement, a Change in Control means any of the following
      events:

            

    

    

    
      	
               
      

            	
              (i)

            	
              Merger:  The
      Company merges into or consolidates with another corporation, or merges
      another corporation into the Company, and as
a

            

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    result
less than a majority of the combined voting power of the resulting corporation
immediately after the merger or consolidation is held by persons who were
stockholders of the Company immediately before the merger or
consolidation.

    

    
      	
               
      

            	
              (ii)

            	
              Acquisition of
      Significant Share Ownership:  There is filed or required
      to be filed a report on Schedule 13D or another form or schedule (other
      than Schedule 13G) required under Sections 13(d) or 14(d) of the
      Securities Exchange Act of 1934, if the schedule discloses that the filing
      person or persons acting in concert has or have become the beneficial
      owner of 25% or more of a class of the Company’s voting securities, but
      this clause (b) shall not apply to beneficial ownership of Company voting
      shares held in a fiduciary capacity by an entity of which the Company
      directly or indirectly beneficially owns 50% or more of its outstanding
      voting securities.

            

    

    

    
      	
               
      

            	
              (iii)

            	
              Change in Board
      Composition:  During any period of two consecutive years,
      individuals who constitute the Company’s Board of Directors at the
      beginning of the two-year period cease for any reason to constitute at
      least a majority of the Company’s Board of Directors; provided, however,
      that for purposes of this clause (iii), each director who is first elected
      by the board (or first nominated by the board for election by the
      stockholders) by a vote of at least two-thirds (2/3) of the directors who
      were directors at the beginning of the two-year period shall be deemed to
      have also been a director at the beginning of such period;
    or

            

    

    

    
      	
               
      

            	
              (iv)

            	
              Sale of
      Assets:  The Company sells to a third party all or
      substantially all of its assets.

            

    

    

    Notwithstanding
anything in this Agreement to the contrary, in no event shall reorganization of
the Company from the mutual holding company form or organization to the full
stock holding company form of organization (including the elimination of the
mutual holding company) constitute a “Change in Control” for purposes of this
Agreement.

    

    
      	
               
      

            	
              b.

            	
              Termination.  If
      within the period ending two (2) years after a Change in Control, (i) the
      Company and the Company shall terminate the Executive’s employment Without
      Cause, or (ii) Executive voluntarily terminates his employment With Good
      Reason, the Company and the Company shall, within ten calendar days
      following the termination of Executive’s employment, make a single
      lump-sum cash payment to him equal to three (3) times the Executive’s
      average Annual Compensation (as defined in this Section 12(b)) over the
      five (5) most recently completed calendar years ending with the year
      immediately preceding the effective date of the Change in
      Control.  In determining Executive’s
  average

            

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              Annual
      Compensation, Annual Compensation shall include base salary and any other
      taxable income, including but not limited to amounts related to the
      granting, vesting or exercise of restricted stock or stock option awards,
      commissions, bonuses (whether paid or accrued for the applicable period),
      as well as, retirement benefits, director or committee fees and fringe
      benefits paid or to be paid to Executive or paid for Executive’s benefit
      during any such year, profit sharing, employee stock ownership plan and
      other retirement contributions or benefits, including to any tax-qualified
      plan or arrangement (whether or not taxable) made or accrued on behalf of
      Executive of such year.  The cash payment made under this
      Section 12(b) shall be made in lieu of any payment also required under
      Section 11(f) of this Agreement because of a termination in such
      period.  Executive’s rights under Section 11(f) are not
      otherwise affected by this Section 12.  Also, in such event, the
      Executive shall, for a thirty-six (36) month period following his
      termination of employment, receive the value of the benefits he would have
      received over such  period under any retirement programs
      (whether tax-qualified or nonqualified) in which the Executive
      participated prior to his termination (with the amount of the benefits
      determined by reference to the benefits received by the Executive or
      accrued on his behalf under such programs during the twelve (12) months
      preceding the Change in Control), payable as a single cash lump sum
      distribution within ten (10) calendar days following such
      termination.  In addition, the Executive shall continue to
      participate in any benefit plans of the Company and the Company that
      provide life insurance and non-taxable medical and dental insurance, or
      similar coverage upon terms no less favorable than the most favorable
      terms provided to senior executives of the Company during such
      period.  In the event that the Company and the Company are
      unable to provide such coverage by reason of the Executive no longer being
      an employee, the Company shall pay the Executive the value of such
      benefits in a single lump sum within ten (10) calendar days following his
      termination.

            

    

    

    
      	
               
      

            	
              c.

            	
              The
      provisions of Section 12 and Sections 14 through 25, including the defined
      terms used is such sections, shall continue in effect until the later of
      the expiration of this Agreement or two (2) years following a Change in
      Control.

            

    

    

    13.          Indemnification
and Liability Insurance.  Subject to, and
limited by Section 27(b) of this Agreement, the Company shall provide the
following:

    

    
      	
               
      

            	
              a.

            	
              Indemnification.  The
      Company and the Company agree to indemnify the Executive (and his heirs,
      executors, and administrators), and to advance expenses related thereto,
      to the fullest extent permitted under applicable law and regulations
      against any and 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 Executive of
      the Company, the Company or any of their subsidiaries (whether or not he
      continues to be a

            

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              director
      or Executive at the time of incurring any such expenses or liabilities)
      such expenses and liabilities to include, but not be limited to,
      judgments, court costs, and attorney’s fees and the cost of reasonable
      settlements, such settlements to be approved by the Board, if such action
      is brought against the Executive in his capacity as an Executive or
      director of the Company and the Company or any of their
      subsidiaries.  Indemnification for expense shall not extend to
      matters for which the Executive has been terminated for
      Cause.  Nothing contained herein shall be deemed to provide
      indemnification prohibited by applicable law or
      regulation.  Notwithstanding anything herein to the contrary,
      the obligations of this Section 13 shall survive the term of this
      Agreement by a period of six (6)
years.

            

    

    

    
      	
               
      

            	
              b.

            	
              Insurance.  During
      the period in which indemnification of the Executive is required under
      this Section, the Company and the Company shall provide the Executive (and
      his heirs, executors, and administrators) with coverage under a directors’
      and Executives’ liability policy at the expense of the Company and the
      Company, at least equivalent to such coverage provided to directors and
      senior Executives of the Company and the
  Company.

            

    

    

    14.           Reimbursement
of Executive’s Expenses to Enforce this Agreement.  The Company shall
reimburse the Executive for all reasonable out-of-pocket expenses, including,
without limitation, reasonable attorney’s fees, incurred by the Executive in
connection with successful enforcement by the Executive of the obligations of
the Company to the Executive under this Agreement.  The Company shall
make such payments promptly and, in any event, not later than March 15 of the
year immediately following the year in which such expense was incurred by
Executive.  Successful enforcement shall mean the grant of an award of
money or the requirement that the Company take some action specified by this
Agreement:  (i) as a result of court order; or (ii) otherwise by
the Company following an initial failure of the Company to pay such money or
take such action promptly after written demand therefor from the Executive
stating the reason that such money or action was due under this Agreement at or
prior to the time of such demand.

    

    15.           Adjustment of Certain
Payments and Benefits.

    

    
      	
               
      

            	
              a.

            	
              Tax
      Indemnification.  Anything in this Agreement to the
      contrary notwithstanding and except as set forth below, in the event it
      shall be determined that any payment, benefit or distribution made or
      provided by the Company or the Bank to or for the benefit of the Executive
      (whether made or provided pursuant to the terms of this Agreement or
      otherwise) (each referred to herein as a “Payment”), would be subject to
      the excise tax imposed by Section 4999 of the Internal Revenue Code of
      1986, as amended (the “Code”) or any interest or penalties are incurred by
      the Executive with respect to such excise tax (the excise tax, together
      with any such interest and penalties, are hereinafter collectively
      referred to as the

            

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    “Excise
Tax”), the Executive shall be entitled to receive an additional payment (a
“Gross-Up Payment”) in an amount such that, after payment by the Executive of
all taxes (including any interest or penalties imposed with respect to such
taxes), including, without limitation, any income taxes (and any interest and
penalties imposed with respect thereto) and Excise Tax imposed upon the Gross-Up
Payment, the Executive retains an amount of the Gross-Up Payment equal to the
Excise Tax imposed upon the Payments.

    

    
      	
               
      

            	
              b.

            	
              Determination of
      Gross-Up Payment.  Subject to the provisions of Section
      15(c), all determinations required to be made under this Section 15,
      including whether and when a Gross-Up Payment is required, the amount of
      such Gross-Up Payment and the assumptions to be utilized in arriving at
      such determination, shall be made by a certified public accounting firm or
      independent tax counsel reasonably acceptable to the Company and the Bank
      as may be designated by the Executive (the “Consulting Firm”) which shall
      provide detailed supporting calculations to the Company, the Bank and the
      Executive within fifteen (15) business days of the receipt of notice from
      the Executive that there has been or will be a Payment, or such earlier
      time as is requested by the Company and the Bank.  All fees and
      expenses of the Consulting Firm shall be borne solely by the Company and
      the Bank.  Any Gross-Up Payment, as determined pursuant to this
      Section 15, shall be paid by the Company to the Executive at the same time
      a cash payment is made pursuant to Section 12(b) of this Agreement. Any
      determination by the Consulting Firm shall be binding upon the Company and
      the Executive.  As a result of the uncertainty in the
      application of Section 4999 of the Code, at the time of the initial
      determination by the Consulting Firm hereunder, it is possible that a
      Gross-Up Payment will not have been made by the Company and the Bank which
      should have been made (an “Underpayment”), consistent with the
      calculations required to be made hereunder.  In the event that
      the Company and the Bank exhaust their remedies pursuant to Section 15(c)
      and the Executive thereafter is required to make a payment of any Excise
      Tax, the Consulting Firm shall determine the amount of the Underpayment
      that has occurred and any such Underpayment shall be promptly paid by the
      Company or the Bank to or for the benefit of the
  Executive.

            

    

    

    
      	
               
      

            	
              c.

            	
              Treatment of
      Claims.  The Executive shall notify the Company and the
      Bank in writing of any claim by the Internal Revenue Service that, if
      successful, would require a Gross-Up Payment to be made.  Such
      notification shall be given as soon as practicable, but no later than ten
      business days, after the Executive is informed in writing of such claim
      and shall apprise the Company and the Bank of the nature of such claim and
      the date on which such claim is requested to be paid.  The
      Executive shall not pay such claim prior to the expiration of the thirty
      (30) day period following the date on which it gives such notice to the
      Company and the Bank (or any shorter period ending on the date that
      payment of taxes with respect

            

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    to such
claim is due).  If the Company or the Bank notifies the Executive in
writing prior to the expiration of this period that it desires to contest such
claim, the Executive shall:

    

    
      	
               
      

            	
              i.

            	
              give
      the Company and the Bank any information reasonably requested by the
      Company and the Bank relating to such
claim;

            

    

    

    
      	
               
      

            	
              ii.

            	
              take
      such action in connection with contesting such claim as the Company and
      the Bank shall reasonably request in writing from time to time, including,
      without limitation, accepting legal representation with respect to such
      claim by an attorney reasonably selected by the Company and the
      Bank;

            

    

    

    
      	
               
      

            	
              iii.

            	
              cooperate
      with the Company and the Bank in good faith in order to effectively
      contest such claim; and

            

    

    

    
      	
               
      

            	
              iv.

            	
              permit
      the Company and the Bank to participate in any proceedings relating to
      such claim; provided, however, that the Company and the Bank shall bear
      and pay directly all costs and expenses (including additional interest and
      penalties) incurred in connection with such contest and indemnity and hold
      the Executive harmless, on an after-tax basis, for any Excise Tax or
      related taxes, interest or penalties imposed as a result of such
      representation and payment of costs and expenses.  Without
      limitation on the foregoing provisions of this Section 15(c), the Company
      and the Bank shall control all proceedings taken in connection with such
      contest and, at their option, may pursue or forgo any and all
      administrative appeals, proceedings, hearings and conferences with the
      taxing authority with respect to such claim and may, at their option,
      either direct the Executive to pay the tax claimed and sue for a refund or
      contest the claim in any permissible manner.  Further, the
      Executive agrees to prosecute such contest to a determination before any
      administrative tribunal, in a court of initial jurisdiction and in one or
      more appellate courts, as the Company and the Bank shall determine;
      provided, however, that if the Company directs the Executive to pay such
      claim and sue for a refund, the Company and the Bank shall advance the
      amount of such payment to the Executive, on an interest-free basis
      (including interest or penalties with respect
      thereto).  Furthermore, the Company’s and the Bank’s control of
      the contest shall be limited to issues with respect to which a Gross-Up
      Payment would be payable hereunder and the Executive shall be entitled to
      settle or contest, as the case may be, any other issues raised by the
      Internal Revenue Service or any other taxing
  authority.

            

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              d.

            	
              Adjustments to the
      Gross-Up Payment.  If, after the receipt by the Executive
      of an amount advanced by the Company pursuant to Section 15(c), the
      Executive becomes entitled to receive any refund with respect to such
      claim, the Executive shall (subject to the Company’s compliance with the
      requirements of Section 15(c)) promptly pay to the Company the amount of
      such refund (together with any interest paid or credited thereon after
      applicable taxes).  If, after the receipt by the Executive of an
      amount advanced by the Company pursuant to Section 15(c), a determination
      is made that the Executive shall not be entitled to any refund with
      respect to such claim and such denial of refund occurs prior to the
      expiration of thirty (30) days after such determination, then such advance
      shall be forgiven and shall not be required to be repaid and the amount of
      such advance shall offset, to the extent thereof, the amount of the
      Gross-Up Payment required to be
paid.

            

    

    

    16.           Injunctive
Relief.  If there is a
breach or threatened breach of Section 11(g) of this Agreement or the
prohibitions upon disclosure contained in Section 10(c) of this Agreement, the
parties agree that there is no adequate remedy at law for such breach, and that
the Company shall be entitled to injunctive relief restraining the Executive
from such breach or threatened breach, but such relief shall not be the
exclusive remedy hereunder for such breach.  The parties hereto
likewise agree that the Executive, without limitation, shall be entitled to
injunctive relief to enforce the obligations of the Company under this
Agreement.

    

    
      	
               
      

            	
              17.

            	
              Successors and
      Assigns.

            

    

    

    
      	
               
      

            	
              a.

            	
              This
      Agreement shall inure to the benefit of and be binding upon any corporate
      or other successor of the Company which shall acquire, directly or
      indirectly, by merger, consolidation, purchase or otherwise, all or
      substantially all of the assets or stock of the Company and the
      Company.

            

    

    

    
      	
               
      

            	
              b.

            	
              Since
      the Company is contracting for the unique and personal skills of
      Executive, Executive shall be precluded from assigning or delegating his
      rights or duties hereunder without first obtaining the written consent of
      the Company.

            

    

    

    18.           No
Mitigation.  Executive shall
not be required to mitigate the amount of any payment provided for in this
Agreement by seeking other employment or otherwise and no such payment shall be
offset or reduced by the amount of any compensation or benefits provided to
Executive in any subsequent employment.

    

    19.           Notices.  All notices,
requests, demands and other communications in connection with this Agreement
shall be made in writing and shall be deemed to have been given when delivered
by hand or 48 hours after mailing at any general or branch United States Post
Office, by registered or certified mail, postage prepaid, addressed to the
Company at their principal

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    business
offices and to Executive at his home address as maintained in the records of the
Company.

    

    20.           No Plan
Created by this Agreement.  Executive and the
Company expressly declare and agree that this Agreement was negotiated among
them and that no provision or provisions of this Agreement are intended to, or
shall be deemed to, create any plan for purposes of the Employee Retirement
Income Security Act or any other law or regulation, and each party expressly
waives any right to assert the contrary.  Any assertion in any
judicial or administrative filing, hearing, or process that such a plan was so
created by this Agreement shall be deemed a material breach of this Agreement by
the party making such an assertion.

    

    21.           Amendments.  No amendments or
additions to this Agreement shall be binding unless made in writing and signed
by all of the parties, except as herein otherwise specifically
provided.

    

    22.           Applicable
Law.  Except to the
extent preempted by Federal law, the laws of the State of Connecticut shall
govern this Agreement in all respects, whether as to its validity, construction,
capacity, performance or otherwise.

    

    23.           Severability.  The provisions of
this Agreement shall be deemed severable and the invalidity or unenforceability
of any provision shall not affect the validity or enforceability of the other
provisions hereof.

    

    24.           Headings.  Headings
contained herein are for convenience of reference only.

    

    25.           Entire
Agreement.  This Agreement,
together with any understanding or modifications thereof as agreed to in writing
by the parties, shall constitute the entire agreement among the parties hereto
with respect to the subject matter hereof, other than written agreements with
respect to specific plans, programs or arrangements described in Sections 5 and
6.  Upon execution of this Agreement, the employment agreement entered
into between the parties on June 4, 2002, will become null and
void.

    

    26.           Source of
Payments.  Notwithstanding any provision in this Agreement to
the contrary, to the extent payments and benefits, as provided for under this
Agreement, are paid or received by Executive under the Employment Agreement in
effect between Executive and the Bank, the payments and benefits paid by the
Bank will be subtracted from any amount or benefit due simultaneously to
Executive under similar provisions of this Agreement.

    

    27.           Required
Provision.  In the event any
of the foregoing provisions of this Section 27 are in conflict with the terms of
this Agreement, this Section 27 shall prevail.

    

    
      	
               
      

            	
              a.

            	
              The
      Company’s board of directors may terminate Executive’s employment at any
      time, but any termination by the Company, 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

            

    

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    benefits
for any period after Termination for Cause as defined in Section 11(d)
hereinabove.

    

    
      	
               
      

            	
              b.

            	
              Any
      payments made to employees pursuant to this Agreement, or otherwise, are
      subject to and conditioned upon their compliance with 12 U.S.C. §1828(k)
      and FDIC regulation 12 C.F.R. Part 359, Golden Parachute and
      Indemnification Payments.

            

    

    

    
      	
               
      

            	
              c.

            	
              Notwithstanding
      anything in this Agreement to the contrary, in the event the Executive is
      a Specified Employee (as defined herein), then, solely, to the extent
      required to avoid penalties under Code Section 409A, the Executive’s
      payments shall be delayed until the first day of the seventh month
      following the Executive’s Separation from Service.  A “Specified
      Employee” shall be interpreted to comply with Code Section 409A and shall
      mean a key employee within the meaning of Code Section 416(i) (without
      regard to paragraph 5 thereof).

            

    

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the
parties hereto have executed this Agreement on the date first set forth
above.

    

    
      	
              Attest:

            	 
      	
              NEW
      ENGLAND BANCSHARES, INC.

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
              /s/ Nancy L. Grady

            	 
      	
              By:

            	
              /s/Thomas O. Barnes

            
	 
      	 
      	 
      	
              Chairman
      of the Board of Directors

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
              Witness:

            	 
      	
              EXECUTIVE

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
              /s/ Nancy L. Grady

            	 
      	
              /s/ David J. O’Connor

            
	 
      	 
      	
              David
      J. O’Connor

            
	 
      	 
      	
              President
      and Chief Executive Officer

            

    

    

    

    

    

    

    17ex10-5.htm

     

    
 

    FORM
OF

     

    NEW
ENGLAND BANCSHARES, INC.
AMENDED AND RESTATED 2008 SEVERANCE
PLAN

    (As
Amended and Restated Effective as of January 1, 2008)

     

    ARTICLE
I

    ESTABLISHMENT
OF THE PLAN

     

    This New
England Bancshares, Inc. (“Company”) Amended and Restated 2008 Severance Plan
(the “Plan”) amends and restates the Enfield Federal Savings and Loan
Association Employee Severance Compensation Plan that was effective June 4,
2002.  The Company has herein restated the Plan with the intention
that the Plan shall at all times satisfy Section 409A of the Code (as defined
herein) and the regulations thereunder and to make certain
changes.  The provisions of the Plan shall be construed to effectuate
such intentions.

    

    ARTICLE
II

    PURPOSE
OF THE PLAN

     

    The
purpose of this Plan is provide specified benefits to certain employees as
provided herein whose employment is terminated in connection with or within
twenty-four (24) months following a Change in Control (as defined
herein).

     

    

    ARTICLE
III

    DEFINITIONS
AND CONSTRUCTION

    

    3.1           Definitions

    

    Whenever used in the Plan, the
following terms shall have the meanings set forth below.

    

    (a)           “Annual
Compensation” shall mean all cash compensation paid or accrued by the Employer
with respect to the Participant’s service during the 12-consecutive month period
ending on the last business day of the month preceding the date the
Participant’s employment terminates.

    

    (b)           “Association”
shall mean Enfield Federal Savings and Loan Association or a successor to
Enfield Federal Savings and Loan Association.

    

    
      	
            	
              (c)

            	
              “Change
      in Control” shall mean any of the following
  events:

            

    

    

    (i)           Merger:  The
Company or Association merges into or consolidates with another corporation, or
merges another corporation into the Company or Association, and as a result less
than a majority of the combined voting power of the resulting corporation
immediately after the merger or consolidation is held by persons who were
stockholders of the Company or Association immediately before the merger or
consolidation.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    (ii)           Acquisition of Significant
Share Ownership:  There is filed or required to be filed a
report on Schedule 13D or another form or schedule (other than Schedule 13G)
required under Sections 13(d) or 14(d) of the Securities Exchange Act of 1934,
if the schedule discloses that the filing person or persons acting in concert
has or have become the beneficial owner of 25% or more of a class of the
Company’s or Association’s voting securities, but this clause (b) shall not
apply to beneficial ownership of Company or Association voting shares held in a
fiduciary capacity by an entity of which the Company or Association directly or
indirectly beneficially owns 50% or more of its outstanding voting
securities.

    

    (iii)           Change in Board
Composition:  During any period of two consecutive years,
individuals who constitute the Company’s or Association’s Board of Directors at
the beginning of the two-year period cease for any reason to constitute at least
a majority of the Company’s or Association’s Board of Directors; provided,
however, that for purposes of this clause (iii), each director who is first
elected by the board (or first nominated by the board for election by the
stockholders) by a vote of at least two-thirds (2/3) of the directors who were
directors at the beginning of the two-year period shall be deemed to have also
been a director at the beginning of such period; or

    

    (iv)           Sale of
Assets:  The Company or Association sells to a third party all
or substantially all of its assets.

    

    Notwithstanding anything in this Plan
to the contrary, in no event shall the merger of any Subsidiary or Affiliate of
the Company into another Subsidiary or Affiliate of the Company constitute a
“Change in Control” for purposes of this Plan.

    

    (d)           “Company”
shall mean New England Bancshares, Inc., a Maryland corporation or a successor
to New England Bancshares, Inc.

    

    (e)           “Disability”
shall mean the permanent and total inability by reason of mental or physical
infirmity, or both, of an employee to perform the work customarily assigned to
him.  Additionally, a medical doctor selected or approved by the Board
of Directors must advise the Board that it is either not possible to determine
if or when such Disability will terminate or that it appears probable that such
Disability will be permanent during the remainder of said employees
lifetime.

    

    (f)           “Effective
Date” shall mean January 1, 2008.

    

    (g)           “Employer”
means the Association or the Company.  Pursuant to Section 7.1 of the
Plan, a Subsidiary may adopt the Plan and become a participating
employer.  As of the Effective Date, the Company and the Association
are the only entities that have adopted the Plan.  In the event the
Association merges into a subsidiary of the Company, such subsidiary will
automatically become a participating employer.

     
 

               (h)           “ERISA”
means Employee Retirement Income Security Act of 1974, as amended.

    

    (i)           “Participant”
means an employee of an Employer who meets the eligibility requirements of
Article IV.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    (j)           “Termination
for Cause” shall include termination because of a 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 violation of any final cease-and desist order, or material breach
of any provision of the plan.  In determining incompetence, the acts
or omissions shall be measured against standards generally prevailing in the
savings institutions industry.

    

    (k)           “Leave
of Absence” and “LOA” mean (i) the taking of an authorized or approved leave of
absence under the provisions of the federal Family and Medical Leave Act
(“FMLA”), (ii) any state law providing qualitatively similar benefits as the
FMLA, or (iii) a leave of absence authorized under the policies of the
Association.  “Leave of Absence” and “LOA” are defined in this
paragraph for the exclusive purposes of this Plan.

    

    (l)           “Year
of Service” means each consecutive 12 month period, beginning with an employee’s
date of hire and running without a termination of employment in which an
employee is credited with at least one hour of service in each of the 12
calendar months in such period.  The taking of an LOA shall not
eliminate a period of time from being a Year of Service if such period of time
otherwise qualifies as such.  Further if a particular 12 month period
of time would not otherwise qualify under the Plan as a Year of Service because
one hour of service is not credited during each month of such period due to the
taking of a LOA, then such period of time shall be deemed to be a Year of
Service for all other sections of this Plan.

    

    3.2           Applicable
Law

    

    The laws of the State of Connecticut
shall be the controlling law in all matters relating to the Plan to the extent
not preempted by Federal law.

    

    3.3           Severability

    

    If a provision of this Plan shall be
held illegal or invalid, the illegality or invalidity shall not affect the
remaining parts of the Plan and the Plan shall be construed and enforced as if
the illegal or invalid provision had not been included.

    

    ARTICLE
IV

    ELIGIBILITY

    

    4.1           Participation

    

    All employees of the Employer who have
completed at least one (1) Year of Service with the Employer at the time of any
termination pursuant to Section 5.2 of this Plan are eligible to participate in
the Plan.  Notwithstanding the foregoing, persons who have entered
into and continue to be covered by an employment agreement or change in control
agreement with the Employer shall not be entitled to participate in this
Plan.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    

    4.2           Duration of
Participation

    

    A Participant shall cease to be a
Participant in the Plan when the Participant ceases to be an employee of an
Employer, unless such Participant is entitled to benefits under the
Plan.  A Participant entitled to benefits under the Plan shall remain
a Participant in this Plan until he has received full payment of his Plan
benefits.

    

    ARTICLE
V

    BENEFITS

    

    5.1           Right to
Benefits

    

    A Participant shall be entitled to
receive from his respective Employer a severance benefit in the amount provided
in Section 5.3 of the Plan if there has been a Change in Control and if, within
twenty-four (24) months thereafter, the Participant’s employment by an Employer
shall terminate for any reason specified in Section 5.2 of the Plan, whether the
termination of employment is voluntary or involuntary.  A Participant
shall not be entitled to a benefit if termination occurs by reason of death,
voluntary retirement, voluntary termination other than for reasons specified in
Section 5.2 of the Plan, Disability, or as a result of Termination for
Cause.

    

    5.2           Reasons for
Termination

    

    Following a Change in Control, a
Participant shall be entitled to a benefit if employment by an Employer is
terminated, voluntarily or involuntarily, for any one or more of the following
reasons:

    

    (a)           The
Employer reduces the Participant’s base salary or rate of compensation as in
effect immediately prior to the Change in Control.

    

    (b)           The
Employer materially changes the Participant’s function, duties or
responsibilities which would cause the Participant’s position to be one of
lesser responsibility, importance or scope with the Employer than immediately
prior to the change in control.

    

    (c)           The
Employer requires the Participant to change the location of the Participant’s
job or office, so that such Participant will be based at a location more than 25
miles from the location of the Participant’s job or office immediately prior to
the Change in Control provided that such new location is not closer to the
Participant’s home.

    

    (d)           The
Employer materially reduces the benefits and perquisites available to the
Participant immediately prior to the Change in Control, provided, however, that
a material reduction in benefits and perquisites generally provided to all
employees of the Employer on a nondiscriminatory basis would not trigger a
payment pursuant to this Plan.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    (e)           A
successor to the Employer fails or refuses to assume the Employer’s obligations
under this Plan, as required by Article VIII.

    

    (f)           The
Employer or any successor to the Employer breaches any other provisions of this
Plan.

    

    (g)           The
Employer terminates the employment of a Participant at or after a Change in
Control other than for Termination for Cause.

    

    provided,
however, that prior to any termination of employment pursuant to Section 5.2(a),
(b), (c), (d), (e) or (f) of this Plan, the Employee must first provide written
notice to the Employer within ninety (90) days of the initial existence of the
condition, describing the existence of such condition, and the Employer shall
thereafter have the right to remedy the condition within thirty (30) days of the
date the Employer received the written notice from the Employee.  If
the Employer remedies the condition within such thirty (30) cure period, then
the Employee will not be entitled to the benefit hereunder.

    

    5.3           Amount of
Benefit

    

    (a)           
Each Participant entitled to a benefit under this Plan shall receive from the
Employer, a lump sum cash payment equal to two weeks of his Annual Compensation
for each Year of Service, provided, however, that such amount shall not exceed
twelve weeks of the Participant’s Annual Compensation.

    

    (b)           Notwithstanding
the provisions of paragraph (a) above, if a benefit to a Participant who is a
“Disqualified Individual” shall be in an amount which includes an “Excess
Parachute Payment,” the benefit hereunder to that Participant shall be reduced
to the maximum amount which does not include an Excess Parachute
Payment.  The terms “Disqualified Individual” and “Excess Parachute
Payment” shall have the same meanings as under Section 280G of the Internal
Revenue Code of 1986, as amended, or any successor provision
thereto.

    

    (c)           All
payments required to be made by the Employer hereunder to the Employee shall be
subject to the withholding of such amounts, if any, relating to tax and other
payroll deductions as the Employer may reasonably determine should be withheld
pursuant to any applicable law or regulation.

    

    (d)           Participants
shall not be required to mitigate damages on the amount of the benefit by
seeking other employment or otherwise, nor shall the amount of such benefit be
reduced by any compensation earned by a Participant as a result of employment
after termination of employment hereunder.

    

    5.4           Time of Payment of
Benefit

    

    (a)           The
benefit to which a Participant is entitled shall be paid to the Participant by
the Employer or the successor to the Employer, in a lump sum cash payment within
ten business days following the date of the termination of the Participant’s
employment.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    If any
Participant should die after termination of the employment but before all
amounts have been paid, such unpaid amounts shall be paid to the Participant’s
named beneficiary, if living, otherwise to the personal representative on behalf
of or for the benefit of the Participant’s estate.

    

    (b)           Notwithstanding
anything in the Plan to the contrary, all payments hereunder are contingent upon
the Participant’s termination of employment qualifying as a “Separation from
Service,” as defined in Treasury Regulations Section
1.409A-1(h).  Furthermore, to the extent a Participant is a “Specified
Employee,” as defined in Treasury Regulations Section 1.409A-1(i), solely to the
extent necessary to avoid penalties under Code Section 409A, payments shall be
delayed until the first day of the seventh month following such Participant’s
Separation from Service.

    

    

    ARTICLE
VI

    OTHER
RIGHTS AND BENEFITS NOT AFFECTED

    

    6.1           Other
Benefits

    

    Neither the provisions of this Plan nor
the benefits provided for hereunder shall reduce any amounts otherwise payable,
or in any way diminish the Participant’s rights as an Employee of an Employer,
whether existing now or hereafter, under any benefit, incentive, retirement,
stock option, stock bonus, stock ownership or any employment agreement or other
plan or arrangement.

    

    6.2           Employment
Status

    

    This Plan does not constitute a
contract of employment or impose on the Participant or the Participant’s
Employer any obligation to retain the Participant as an Employee, to change the
status of the Participant’s employment, or to change the Employer’s policies
regarding termination of employment.

    

    ARTICLE
VII

    PARTICIPATING
EMPLOYERS

    

    7.1           Upon
approval by the Board of Directors of the Company, this Plan may be adopted by
any “Affiliate” or “Subsidiary” of the Company.  Upon such adoption,
the Affiliate or Subsidiary shall become an Employer hereunder and the
provisions of the Plan shall be fully applicable to the Employees of that
Affiliate or Subsidiary.  The term “Affiliate” means any entity that
directly or through one or more intermediaries, controls, is controlled by or is
under common control with, the Company.  The term “Subsidiary” means
any corporation in which the Association, directly or indirectly, holds a
majority of the voting power of its outstanding shares of capital
stock.

    
      
         

      

      
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    ARTICLE
VIII

    SUCCESSOR
TO THE ASSOCIATION

    

    8.1           The
Employer 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 Employer, expressly and unconditionally to assume and
agree to perform the Employer’s obligations under this plan, in the same manner
and to the same extent that the Employer would be required to perform if no such
succession or assignment had taken place.

    

    

    ARTICLE
IX

    DURATION,
AMENDMENT AND TERMINATION

    

    9.1           Duration

    

    If a Change in Control has not
occurred, this Plan shall expire ten (10) years from the Effective Date, unless
sooner terminated as provided in Section 9.2 of the Plan, or unless extended for
an additional period or periods by resolution adopted by the Board of Directors
of the Employer.

    

    Notwithstanding the foregoing, if a
Change in Control occurs this Plan shall continue in full force and effect, and
shall not terminate or expire until such date as all Participants who become
entitled to benefits hereunder shall have received such benefits in
full.

    

    9.2           Amendment and
Termination

    

    The Plan may be terminated or amended
in any respect by resolution adopted by a majority of the Board of Directors of
the Employer, unless a Change in Control has previously occurred.  If
a Change in Control occurs, the Plan no longer shall be subject to amendment,
change, substitution, deletion, revocation or termination in any respect
whatsoever.

    

    9.3           Form of
Amendment

    

    The form of any proper amendment or
termination of the Plan shall be a written instrument signed by a duly
authorized officer or officers of the Employer, certifying that the amendment or
termination has been approved by the Board of Directors.  A proper
amendment of the Plan automatically shall effect a corresponding amendment to
each Participant’s rights hereunder.  A proper termination of the Plan
automatically shall effect a termination of all Participants’ rights and
benefits hereunder.

    

    9.4           No
Attachment

    

    (a)           Except
as required by law, no right to receive payments under this Plan 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

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    operation
of law, and any attempt, voluntary or involuntary, to affect such action shall
be null, void, and of no effect.

    

    (b)           This
Plan shall be binding upon, and inure to the benefit of, Employee and the
Employer and their respective successors and assigns.

    

    ARTICLE
X

    LEGAL
FEES AND EXPENSES

    

    10.1           All
reasonable legal fees and other expenses paid or incurred by a party hereto
pursuant to any dispute or question of interpretation relating to this Plan
shall be paid or reimbursed by the prevailing party in any legal judgment,
arbitration or settlement.  Such payment or reimbursement shall occur
no later than two and one-half (2 1⁄2) months after the dispute is settled or
resolved in Employee’s favor.

    

    ARTICLE
XI

    REQUIRED
PROVISIONS

    

    11.1           The
Employer may terminate an Employee’s employment at any time, but any termination
by the Employer, other than Termination for Cause, shall not prejudice the
Employee’s right to compensation or other benefits under this
Plan.  Employee shall not have the right to receive compensation or
other benefits for any period after Termination for Cause as otherwise provided
hereunder.

    

    11.2           If
the Employee is suspended and/or temporarily prohibited from participating in
the conduct of the Association’s affairs by a notice served under Section
8(e)(3) or 8(g)(1) of the Federal Deposit Insurance Act, 12 U.S.C. §1818(e)(3)
or (g)(1), the Association’s obligations under this Plan shall be suspended as
of the date of service, unless stayed by appropriate proceedings.  If
the charges in the notice are dismissed, the Association may in its discretion
(i) pay the Employee all or part of the compensation withheld while their
contract obligations were suspended and (ii) reinstate (in whole or in part) any
of the obligations which were suspended.

    

    11.3           If
the Employee is removed and/or permanently prohibited from participating in the
conduct of the Association’s affairs by an order issued under Section 8(e)(4) or
8(g)(1) of the Federal Deposit Insurance Act, 12 U.S.C. §1818(e)(4) or (g)(1),
all obligations of the Association under this Plan shall terminate as of the
effective date of the order, but vested rights of the contracting parties shall
not be affected.

    

    11.4           If
the Employer is in default as defined in Section 3(x)(1) of the Federal Deposit
Insurance Act, 12 U.S.C. §1813(x)(1),  all obligations of the Employer
under this Plan shall terminate as of the date of default, but this paragraph
shall not affect any vested rights of the contracting parties.

    

    11.5           Notwithstanding
any other provision of this Plan to the contrary, any payments made to an
Employee pursuant to this Plan, or otherwise, are subject to and conditioned
upon

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    their
compliance with Section 18(k) of the Federal Deposit Insurance Act (12 U.S.C.
§1828(k)) and the regulations promulgated thereunder, including 12 C.F.R Part
359.

    

    ARTICLE
XII

    ADMINISTRATIVE  PROVISIONS

    

    12.1           Plan
Administrator.  The administrator of the Plan shall be under
the supervision of the Board of Directors of the Employer or a Committee
appointed by the Board of Directors of the Employer (the “Board”).  It
shall be a principal duty of the Board to see that the Plan is carried out in
accordance with its terms, for the exclusive benefit of persons entitled to
participate in the Plan without discrimination among them.  The Board
will have full power to administer the Plan in all of its details subject,
however, to the requirements of ERISA if the Plan is subject to such
requirements.  For this purpose, the Board’s powers will include, but
will not be limited to, the following authority, in addition to all other powers
provided by this Plan:  (a) to make and enforce such rules and
regulations as it deems necessary or proper for the efficient administration of
the Plan;  (b)  to interpret the Plan, its interpretation
thereof in good faith to be final and conclusive on all persons claiming
benefits under the Plan;  (c) to decide all questions concerning the
Plan and the eligibility of any person to participate in the
Plan;  (d) to compute the amount of benefits that will be payable to
any Participant or other person in accordance with the provisions of the Plan,
and to determine the person or persons to whom such benefits will be
paid;  (e) to authorize the payment of benefits;  (f) to
appoint such agents, counsel, accountants, consultants and actuaries as may be
required to assist in administering the Plan; and  (g) to allocate and
delegate its responsibilities under the Plan and to designate other persons to
carry out any of its responsibilities under the Plan, any such allocation,
delegation or designation to be by written instrument and in accordance with
Section 405 of ERISA if applicable.

    

    12.2           Named
fiduciary.  The Board will be a “named fiduciary” for purposes
of Section 402(a)(1) of ERISA with authority to control and manage the operation
and administration of the Plan, and will be responsible for complying with all,
if any, of the reporting and disclosure requirements of Part 1 of Subtitle B of
Title I of ERISA.

    

    12.3           Claims and review
procedures.

    

    (a)  Claims
procedure.  If any person believes he is being denied any
rights or benefits under the Plan, such person may file a claim in writing with
the Board.  If any such claim is wholly or partially denied, the Board
will notify such person of its decision in writing.  Such notification
will be written in a manner calculated to be understood by such person and will
contain  (i) specific reasons for the
denial,  (ii)  specific reference to pertinent Plan
provisions,  (iii) a description of any additional material or
information necessary for such person to perfect such claim and an explanation
of why such material or information is necessary and  (iv) information
as to the steps to be taken if the person wishes to submit a request for
review.  Such notification will be given within 90 days after the
claim is received by the Board (or within 180 days, if special circumstances
require an extension of time for processing the claim, and if written notice of
such extension and circumstances is given to such person within the initial 90
day period).  If such notification is not given within such period,
the claim will be considered denied as of the last day of such period and such
person may request a review of his claim.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

    (b)  Review
procedure.  Within 60 days after the date on which a person
receives a written notice of a denied claim (or, if applicable, within 60 days
after the date on which such denial is considered to have occurred) such person
(or his duly authorized representative) may (i) file a written request with the
Board for a review of his denied claim and of pertinent documents
and  (ii) submit written issues and comments to the
Board.  The Board will notify such person of its decision in
writing.  Such notification will be written in a manner calculated to
be understood by such person and will contain specific reasons for the decision
as well as specific references to pertinent Plan provisions.  The
decision on review will be made within 60 days after the request for review is
received by the Board (or within 120 days, if special circumstances require an
extension of time for processing the requests such as an election by the Board
to hold a hearing, and if written notice of such extension and circumstances is
given to such person within the initial 60 day period).  If the
decision on review is not made within such period, the claim will be considered
denied.

    

    12.4           Nondiscriminatory exercise
of authority.  Whenever, in the administration of the Plan, any
discretionary action by the Board is required, the Board shall exercise its
authority in a nondiscriminatory manner so that all persons similarly situated
will receive substantially the same treatment.

    

    12.5           Indemnification of
Board.  The Employer will indemnify and defend to the fullest
extent permitted by law any person serving on the Board or as a member of a
committee designated as Board (including any person who formerly served as a
Board member or as a member of such committee) against all liabilities, damages,
costs and expenses (including attorneys fees and amounts paid in settlement of
any claims approved by the Employer) occasioned by any act or omission to act in
connection with the Plan, if such act or omission is in good faith.

    

    12.6           Benefits solely from general
assets.  The benefits provided hereunder will be paid solely
from the general assets of the Employer.  Nothing herein will be
construed to require the Employer or the Board to maintain any fund or segregate
any amount for the benefit of any Participant, and no Participant or other
person shall have any claim against, right to, or security or other interest in,
any fund, account or asset of the Employer from which any payment of benefits
under the Plan may be made.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the
undersigned duly authorized officer of the Company and Association has executed
this Plan.

    

    
      	 
      	 
      
	 
      	
              NEW
      ENGLAND BANCSHARES, INC.

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
              David
      J. O’Connor

            
	 
      	
              President
      and Chief Executive Officer

            
	 
      	 
      
	 
      	 
      
	 
      	
              ENFIELD
      FEDERAL SAVINGS AND

            
	 
      	
              LOAN
      ASSOCIATION

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
              David
      J. O’Connor

            
	 
      	
              President
      and Chief Executive Officer

            
	 
      	 
      

    

    

    

    

    

    

    

    

    11

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