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EXHIBIT 10.10  

 
 

EMPLOYMENT AGREEMENT    
    

        This Employment Agreement ("Agreement") is made as of
the                        day
of                        , 2007, by and among Danvers Bancorp, Inc., a Delaware
corporation (the "Company"), and its subsidiary, Danversbank, a Massachusetts savings bank with its main office in Danvers, Massachusetts (the "Bank") (the Bank and the Company shall be hereinafter
collectively referred to as the "Employers"), and John J. O'Neil (the "Executive"). 

        WHEREAS,
the Employers desire to continue to employ the Executive and the Executive desires to be employed by the Employers on the terms contained herein. 

        NOW,
THEREFORE, 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.    Employment.    The term of this Agreement shall extend from the date first written above (the "Commencement
Date") until the third anniversary of the Commencement Date and during the period of any additional extensions described below in this Section 1 (the "Term"). The parties intend that, at any
point during the Executive's employment hereunder, the then remaining Term shall be three years. On the day after the Commencement Date and on each day thereafter, the Term shall be extended by one
day, such that on any date, the Term will expire on the third anniversary of such date. These extensions shall continue in perpetuity until discontinued by (i) notice to the Executive given by
either the Company or the Bank that it has elected to discontinue the extensions; (ii) notice by the Executive to either the Company or the Bank that the Executive has elected to discontinue
the extensions; or (iii) termination of the Executive's employment with the Employers as provided in Section 4. At least once in each calendar year, the Board of Directors of the Company
(the "Board") will review this Agreement and the Executive's performance for purposes of determining whether to continue to extend the Agreement. The Board shall give notice to the Executive
reasonably promptly after such review if it has decided to discontinue extending the Term. 

        2.    Position and Duties.    During the Term, the Executive shall serve as Executive Vice President and Senior
Lending Officer, Loans of both the Company and the Bank and shall have supervision and control over and responsibility for the day-to-day business and affairs of the Employers
and shall have such other powers and duties as may from time to time reasonably be prescribed by the Board, provided that such duties are consistent with the Executive's position or other positions
that he may hold from time to time. The Executive shall devote his full working time and efforts to the business and affairs of the Employers. Notwithstanding the foregoing, the Executive may
(i) serve on other boards of directors, with the approval of the Board, (ii) engage in religious, charitable or other community activities as long as such services and activities are
disclosed to the Board and do not materially interfere with the Executive's performance of his duties to the Employers as provided in this Agreement, and (iii) invest the Executive's assets in
such form or manner as shall not require any material services on the Executive's part in the operations or affairs of the entities in which such investments are made, provided that the Executive may
not own any interest in any entity that is a Competing Business (as hereinafter defined), other than up to one percent of the outstanding stock of a publicly held entity. 

        3.    Compensation and Related Matters.    

        (a)    Base Salary.    The Executive's initial annual base salary shall be $226,800. The Executive's base salary shall
be redetermined annually by the Compensation Committee of the Board (the "Compensation Committee"). The base salary in effect at any given time is referred to herein as "Base Salary." The Base Salary
may be increased but not decreased other than in connection with across-the-board salary reductions based on the Employers' financial performance similarly affecting all senior
management personnel of the Employers. The Base Salary shall be payable in periodic installments in accordance with the Bank's usual practice for its senior executives. 

 

        (b)    Incentive Compensation.    The Executive shall be eligible to receive cash incentive compensation as determined
by the Compensation Committee from time to time. The Executive's target annual bonus shall be 35 percent of his Base Salary. 

        (c)    Expenses.    The Executive shall be entitled to receive prompt reimbursement for all reasonable expenses
incurred by him in performing services hereunder during the Term, in accordance with the policies and procedures then in effect and established by the Bank for its senior executive officers. 

        (d)    Automobile.    The Executive shall be entitled to the exclusive use of an automobile (including all expenses
associated with the operation thereof, including without limitation maintenance, gasoline and insurance) selected by the Executive, the value of which shall not exceed $50,000. The automobile may be
replaced every three years or 50,000 miles, whichever occurs first. 

        (e)    Club Memberships.    The Employers shall pay the annual club or other dues or membership fees of a club or
clubs selected by the Executive, with the concurrence of the Compensation Committee. 

        (f)    SERP.    The Executive shall continue to be entitled to the supplemental retirement benefits provided by the
Danversbank Supplemental Executive Retirement Plan, as amended and restated as of January 1, 2005 (the "SERP") in accordance with the terms thereof. 

        (g)    Stock-Based Awards.    The Company intends to implement a stock option or other stock-based incentive plan for
employees of the Company and the Bank as soon as reasonably practicable in accordance with applicable regulations. The Executive shall be eligible to receive awards under such plan as determined by
the Compensation Committee from time to time. 

        (h)    Other Benefits.    During the Term, the Executive shall be entitled to continue to participate in or receive
benefits under all of the Employers' Employee Benefit Plans in effect on the date hereof, or under plans or arrangements that provide the Executive with benefits at least substantially equivalent to
those provided under such Employee Benefit Plans. As used herein, the term "Employee Benefit Plans" includes, without limitation, each pension and retirement plan; deferred compensation plan; savings
and profit-sharing plan; employee stock ownership plan; stock purchase plan; stock option plan; life insurance plan; medical insurance plan; disability plan; and health and accident plan or
arrangement established and maintained by the Employers on the date hereof for employees of the same status within the hierarchy of the Employers. During the Term, the Executive shall be entitled to
participate in or receive benefits under any employee benefit plan or arrangement which may, in the future, be made available by the Employers to their executives and key management employees, subject
to and on a basis consistent with the terms, conditions and overall administration of such plan or arrangement. 

        (i)    Vacations.    The Executive shall be entitled to 25 paid vacation days in each calendar year, which shall be
accrued ratably during the calendar year. The Executive shall also be entitled to all paid holidays given by the Bank to its senior executive officers. 

        4.    Termination.    The Executive's employment hereunder may be terminated without any breach of this Agreement
under the following circumstances: 

        (a)    Death.    The Executive's employment hereunder shall terminate upon his death, provided, however, that for a
period of three months following the Executive's death, the Employers shall pay to the Executive's designated beneficiary (or to his estate, if he fails to make such designation), an amount equal to
the Executive's salary at the rate of his Base Salary in effect at the time of his death, such payments to be made on the same periodic dates as salary payments would have been made to the Executive
had he not died. 

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        (b)    Disability.    If the Executive shall be disabled, as determined under the Employers' long-term
disability insurance plan, during his employment under this Agreement and, in the reasonable opinion of a physician selected by the Employers and reasonably acceptable to the Executive, such
disability is expected to last more than 12 months, the Board may remove the Executive from any responsibilities and/or reassign the Executive to another position with the Employers for the
remainder of the Term or during the period of such disability. Notwithstanding any such removal or reassignment, the Executive shall continue to receive the Executive's full Base Salary (less any
disability pay or sick pay benefits to which the Executive may be entitled under the Employers' policies) and other compensation and benefits under Section 3 of this Agreement (except to the
extent that the Executive may be ineligible for one or more such benefits under applicable plan terms) until the earlier of (i) the date on which he becomes eligible for full disability income
benefits under the Employers' long-term disability insurance plan and (ii) the expiration of the Term. Nothing in this Section 4(b) shall be construed to waive the
Executive's rights, if any, under existing law including, without limitation, the Family and Medical Leave Act of 1993, 29 U.S.C. §2601 et
seq. and the Americans with Disabilities Act, 42 U.S.C. §12101 et seq.

        (c)    Retirement.    The Executive may terminate his employment hereunder due to Retirement. For purposes hereof,
"Retirement" means the termination of the Executive's employment with the Employers for any reason by the Executive at any time after the Executive attains age 65. 

        (d)    Termination by Employers for Cause.    At any time during the Term, the Employers may terminate the Executive's
employment hereunder for Cause if at a meeting of the Board called and held for such purpose, a majority of the Board determines in good faith that the Executive is guilty of conduct that constitutes
"Cause" as defined herein. For purposes of this Agreement, "Cause" shall mean: (i) conduct by the Executive constituting a material act of willful misconduct or deliberate dishonesty in
connection with the performance of his duties that would reasonably be expected to result in material injury to the Employers if he were retained in his position; (ii) the commission by the
Executive of any felony or a misdemeanor involving moral turpitude, deceit, dishonesty or fraud; (iii) continued, willful and deliberate non-performance by the Executive of his
duties hereunder (other than by reason of the Executive's physical or mental illness, incapacity or disability) which has continued for more than 30 days following written notice of such
non-performance from the Board; (iv) a material breach by the Executive of any of the provisions contained in Section 7 of this Agreement; or (v) willful failure to
cooperate with a bona fide internal investigation or an investigation by regulatory or law enforcement authorities, after being instructed by the Employers to cooperate, or the willful destruction or
failure to preserve documents or other materials known at the time of destruction to be relevant to such investigation or the willful inducement of others to fail to cooperate
or to produce documents or other materials in connection with such investigation. For purposes of clauses (i), (iii) or (v) hereof, no act, or failure to act, on the Executive's part
shall be deemed "willful" or "deliberate" unless done, or omitted to be done, by the Executive without reasonable belief that the Executive's act or failure to act, was in the best interest of the
Employers and their subsidiaries and affiliates. 

        (e)    Termination Without Cause.    At any time during the Term, the Employers may terminate the Executive's
employment hereunder without Cause if such termination is approved by a majority of the Board at a meeting of the Board called and held for such purpose. Any termination by the Employers of the
Executive's employment under this Agreement which does not constitute a termination for Cause under Section 4(d) or result from the death or disability of the Executive under
Section 4(a) or (b) shall be deemed a termination without Cause. 

        (f)    Termination by the Executive.    At any time during the Term, the Executive may terminate his employment
hereunder for any reason, including but not limited to Good Reason. If the Executive provides notice to the Employers under Section 1 that he elects to discontinue the extensions, such action
shall be deemed a voluntary termination by the Executive and one without 

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Good
Reason. For purposes of this Agreement, "Good Reason" shall mean the occurrence of any of the following events: (i) a substantial diminution or other substantial adverse change, not
consented to by the Executive in writing, in the nature or scope of the Executive's responsibilities, authorities, powers, functions or duties; (ii) any removal, during the Term, from the
Executive of his title of Executive Vice President and Senior Lending Officer, Loans that is not consented to in writing by the Executive; (iii) an involuntary reduction in the Executive's Base
Salary except for across-the-board salary reductions based on the Employers' financial performance similarly affecting all senior management personnel of the Employers;
(iv) a breach by the Employers of any of their material obligations under this Agreement; (v) the involuntary relocation of the Employers' offices at which the Executive is principally
employed or the involuntary relocation of the offices of the Executive's primary workgroup to a location more than 25 miles from such offices; (vi) the failure of the Company to obtain an
effective agreement from any successor to the Company to assume and agree to perform this Agreement, as required by Section 18; (vii) a Change in Control (as hereinafter defined),
provided, however, that the provisions of this clause (vii) shall apply only if the Executive terminates his employment during the 30-day period immediately following a Change in
Control; or (viii) a determination by the Board not to continue to extend the Term of this Agreement as provided in Section 1. 

        (g)    Notice of Termination.    Except for termination as specified in Section 4(a), any termination of the
Executive's employment by the Employers or any such termination by the Executive shall be communicated by written Notice of Termination to the other party hereto. For purposes of this Agreement, a
"Notice of Termination" shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon. 

        (h)    Date of Termination.    "Date of Termination" shall mean: (i) if the Executive's employment is
terminated by his death, the date of his death; (ii) if the Executive's employment is terminated on account of disability under Section 4(b) or by the Employers for Cause under
Section 4(d), the date on which Notice of Termination is given; (iii) if the Executive's employment is terminated by the Employers under Section 4(e), 30 days after the
date on which a Notice of Termination is given; and (iv) if the Executive's employment is terminated by the Executive under Section 4(c) or 4(f), 30 days after the date on which a
Notice of Termination is given. Notwithstanding the foregoing, in the event that the Executive gives a Notice of Termination to the Employers, the Employers may unilaterally accelerate the Date of
Termination, and such acceleration shall not result in a termination by the Employers for purposes of this Agreement. 

        5.    Compensation Upon Termination.    

        (a)    Termination Generally.    If the Executive's employment with the Company is terminated for any reason during
the Term, the Company shall pay or provide to the Executive (or to his authorized representative or estate) any earned but unpaid Base Salary, incentive compensation earned but not yet paid, unpaid
expense reimbursements, accrued but unused vacation and any vested benefits the Executive may have under any employee benefit plan of the Employers, including without limitation the SERP (the "Accrued
Benefit"). In addition, except in the case of a Termination for Cause or by the Executive without Good Reason and other than in connection with Retirement, the Employers shall pay the Executive (and
in the case of the Executive's death, his surviving spouse, or estate if there is no surviving spouse) a pro rata portion of the Executive's target cash bonus for the year of termination, based on the
portion of the calendar year during which the Executive was employed before termination of the Executive's employment. 

        (b)    Termination by the Employers Without Cause or by the Executive with Good Reason.    If the Executive's
employment is terminated by the Employers without Cause as provided in Section 4(d), or the Executive terminates his employment for Good Reason as provided in Section 4(e), then the
Employers shall, through the Date of Termination, pay the Executive his Accrued Benefit and a pro rata portion of his target cash bonus for the year of termination. In addition, subject to 

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signing
by the Executive of a general release of claims in a form and manner reasonably satisfactory to the Employers, 

          (i)  the
Employers shall pay the Executive a lump sum amount equal to three times the sum of (A) the Executive's Base Salary and (B) the greater of his target
cash bonus for the year of termination or his highest cash bonus (other than payments pursuant to the Bank's Phantom Stock Plan) earned in the preceding three years (the "Severance Amount"); and 

         (ii)  upon
the Date of Termination, all stock options and other stock-based awards held by the Executive in which the Executive would have vested if he had remained employed
for an additional 36 months
following the Date of Termination shall vest and become fully exercisable and nonforfeitable as of the Date of Termination; provided, however, if the acceleration of vesting is prohibited by the terms
of the Company's stock incentive plan, the Employers shall pay the Executive a cash payment in lieu thereof. With respect to each option, the cash payment shall be in an amount equal to the excess of
the fair market value of the Company's common stock on the Date of Termination over the exercise price of the option, multiplied by the number of shares of the Company's common stock underlying the
option that would have become exercisable if the Executive had remained employed for an additional 36 months. With respect to the shares of restricted stock, the cash payment shall be in an
amount equal to the fair market value of the Company's common stock on the Date of Termination multiplied by the number of shares of restricted stock with respect to which the risks of forfeiture
would have lapsed if the Executive had remained employed for an additional 36 months; and 

        (iii)  subject
to the Executive's copayment of premium amounts at the active employees' rate, the Executive shall continue to participate in the Bank's group health, dental
and vision program for 36 months; and 

        (iv)  Anything
in this Agreement to the contrary notwithstanding, if at the time of the Executive's termination of employment, the Executive is considered a "specified
employee" within the meaning of Section 409A(a)(2)(B)(i) of the Internal Revenue Code of 1986, as amended (the "Code"), and if any payment that the Executive becomes entitled to under
this Agreement is considered deferred compensation subject to interest and additional tax imposed pursuant to Section 409A(a) of the Code as a result of the application of
Section 409A(a)(2)(B)(i) of the Code, then no such payment shall be payable prior to the date that is the earlier of (A) six months after the Executive's separation from service,
or (B) the Executive's death, and the initial payment shall include a catch-up amount covering amounts that would otherwise have been paid during the first six-month
period but for the application of this Section 5(b)(iv). 

        Any
health care continuation period to which the Executive may be entitled under Section 4980B of the Code and/or Section 601 through Section 609 of the Employee
Retirement Income Security Act of 1974 and under any analogous state or local law shall commence immediately following the period specified in clause (iii) hereof. Upon expiration of such
health care continuation period, subject to the terms of any group health plan then in place, the Executive shall be entitled at his own expense to convert his coverage under such plan to an
individual (or family) health care policy. 

        In
the event that the Executive's participation in any of the foregoing benefit plans is barred by law or otherwise, or in the event that any such benefit plan is discontinued or the
benefits thereunder are materially reduced during such period, the Employers shall provide the Executive with benefits substantially similar to those to which the Executive was entitled immediately
prior to the Date of Termination. 

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        6.    Change in Control Payment.    The provisions of this Section 6 set forth certain terms of an agreement
reached between the Executive and the Employers regarding the Executive's rights and obligations upon the occurrence of a Change in Control of the Company or the Bank. These provisions are intended to
assure and encourage in advance the Executive's continued attention and dedication to his assigned duties and his objectivity during the pendency and after the occurrence of any such event. These
provisions are in addition to the provisions of Section 5(b) regarding severance pay and benefits upon a termination of employment. 

        (a)    Change in Control.    Notwithstanding anything to the contrary in any applicable option agreement or
stock-based award agreement, upon a Change in Control, all stock options and other stock-based awards granted to the Executive by the Employers shall immediately accelerate and become fully
exercisable and nonforfeitable as of the effective date of such Change in Control. 

        (b)    Gross-Up Payment.    

          (i)  Anything
in this Agreement to the contrary notwithstanding, in the event it shall be determined that any compensation, payment or distribution by the Employers to or
for the benefit of the Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (the "Severance Payments"), would be subject to the
excise tax imposed by Section 4999 of the Code, or any interest or penalties are incurred by the Executive with respect to such excise tax (such excise tax, together with any such interest and
penalties, are hereinafter collectively referred to as the "Excise Tax"), then the Executive shall be entitled to receive an additional payment (a "Gross-Up Payment") such that the net
amount retained by the Executive, after deduction of any Excise Tax on the Severance Payments, any Federal, state, and local income tax, employment tax and Excise Tax upon the payment provided by this
Section, and any interest and/or penalties assessed with respect to such Excise Tax, shall be equal to the Severance Payments. 

         (ii)  Subject
to the provisions of Section 6(b)(iii) below, all determinations required to be made under this Section 6(b)(ii), including whether a
Gross-Up Payment is required and the amount of such Gross-Up Payment, shall be made by a nationally recognized accounting firm selected by the Company (the "Accounting Firm"),
which shall provide detailed supporting calculations both to the Company and the Executive within 15 business days of the Date of Termination, if applicable, or at such earlier time as is reasonably
requested by the Company or the Executive. For purposes of determining the amount of the Gross-Up Payment, the Executive shall be deemed to pay federal income taxes at the highest marginal
rate of federal income taxation applicable to individuals for the calendar year in which the Gross-Up Payment is to be made, and state and local income taxes at the highest marginal rates
of individual taxation in the state and locality of the Executive's residence on the Date of Termination, net of the maximum reduction in federal income taxes which could be obtained from deduction of
such state and local taxes. The initial Gross-Up Payment, if any, as determined pursuant to this Section 6(b)(ii), shall be paid to the Executive within five days of the receipt of
the Accounting Firm's determination. Any determination by the Accounting 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 Accounting Firm hereunder, it is possible that Gross-Up Payments which will not have been made by the
Company should have been made (an "Underpayment"). In the event that the Company exhausts its remedies pursuant to Section 6(b)(iii) below and the Executive thereafter is required to
make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred, consistent with the calculations required to be made hereunder, and any such
Underpayment, and any interest and penalties imposed on the Underpayment and required to be paid by the Executive in connection with 

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the
proceedings described in Section 6(b)(iii) below, shall be promptly paid by the Company to or for the benefit of the Executive. 

        (iii)  The
Executive shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the Company of the
Gross-up Payment. Such notification shall be given as soon as practicable but no later than ten business days after the Executive knows of such claim and shall apprise the Company 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 30-day period following the date on
which he gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies the Executive in writing
prior to the expiration of such period that it desires to contest such claim, provided that the Company has set aside adequate reserves to cover the Underpayment and any interest and penalties thereon
that may accrue, the Executive shall: 

        (A)  give
the Company any information reasonably requested by the Company relating to such claim, 

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

        (C)  cooperate
with the Company in good faith in order to effectively contest such claim, and 

        (D)  permit
the Company to participate in any proceedings relating to such claim; provided, however, that the Company shall bear and pay directly all costs and expenses
(including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or
income tax, including interest and penalties with respect thereto, imposed as a result of such representation and payment of costs and expenses. Without limitation on the foregoing provisions of this
Section 6(b)(iii), the Company shall control all proceedings taken in connection with such contest and, at its sole option, may pursue or forego any and all administrative appeals, proceedings,
hearings and conferences with the taxing authority in respect of such claim and may, at its sole option, either direct the Executive to pay the tax claimed and sue for a refund or contest the claim in
any permissible manner, and 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 shall determine; provided, however, that if the Company directs the Executive to pay such claim and sue for a refund, the Company shall advance the amount of such payment to the
Executive on an interest-free basis and shall indemnify and hold the Executive harmless, on an after-tax basis, from any Excise Tax or income tax, including interest or
penalties with respect thereto, imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute of
limitations relating to payment of taxes for the taxable year of the Executive with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore,
the Company'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. 

        (iv)  If,
after the receipt by the Executive of an amount advanced by the Company pursuant to Section 6(b)(iii), the Executive becomes entitled to receive any refund
with 

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respect
to such claim, the Executive shall (subject to the Company's complying with the requirements of Section 6(b)(iii)) promptly pay to the Company the amount of such refund (together with
any interest paid or credited thereon after taxes applicable thereto). If, after the receipt by the Executive of an amount advanced by the Company pursuant to Section 6(b)(iii), a determination
is made that the Executive shall not be entitled to any refund with respect to such claim and the Company does not notify the Executive in writing of its intent to contest such denial of refund prior
to the expiration of 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 Gross-Up Payment required to be paid. 

        (c)    Definitions.    For purposes of this Section 6, the following terms shall have the following meanings: 

        "Change
in Control" shall mean any of the following: 

          (i)  any
"person," as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the "Act") (other than the Company, any of its
subsidiaries, or any trustee, fiduciary or other person or entity holding securities under any employee benefit plan or trust of the Company or any of its subsidiaries), together with all "affiliates"
and "associates" (as such terms are defined in Rule 12b-2 under the Act) of such person, shall become the "beneficial owner" (as such term is defined in
Rule 13d-3 under the Act), directly or indirectly, of securities of the Company or the Bank representing 25 percent or more of the combined voting power of the Company's or
the Bank's then outstanding securities having the right to vote in an election of the Company's or the Bank's Board ("Voting Securities") (in such case other than as a result of an acquisition of
securities directly from the Company); or 

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

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

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

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

        7.    Confidential Information, Noncompetition and Cooperation.    

        (a)    Confidential Information.    As used in this Agreement, "Confidential Information" means information belonging
to the Employers which is of value to the Employers in the course of conducting their businesses and the disclosure of which could result in a competitive or other disadvantage to the Employers.
Confidential Information includes, without limitation, financial information, reports, and forecasts; inventions, improvements and other intellectual property; trade secrets; know-how;
designs, processes or formulae; software; market or sales information or plans; customer lists; and business plans, prospects and opportunities (such as possible acquisitions or dispositions of
businesses or facilities) which have been discussed or considered by the management of the Employers. Confidential Information includes information developed by the Executive in the course of the
Executive's employment by the Employers, as well as other information to which the Executive may have access in connection with the Executive's employment. Confidential Information also includes the
confidential information of others with which the Employers have a business relationship. Notwithstanding the foregoing, Confidential Information does not include information in the public domain,
unless due to breach of the Executive's duties under Section 7(b). 

        (b)    Confidentiality.    The Executive understands and agrees that the Executive's employment creates a relationship
of confidence and trust between the Executive and the Employers with respect to all Confidential Information. At all times, both during the Executive's employment with the Employers and after its
termination, the Executive will keep in confidence and trust all such Confidential Information, and will not use or disclose any such Confidential Information without the written consent of the
Employers, except as may be necessary in the ordinary course of performing the Executive's duties to the Company. 

        (c)    Documents, Records, etc.    All documents, records, data, apparatus, equipment and other physical property,
whether or not pertaining to Confidential Information, which are furnished to the Executive by the Employers or are produced by the Executive in connection with the Executive's employment will be and
remain the sole property of the Employers. The Executive will return to the Employers all such materials and property as and when requested by the Employers. In any event, the Executive will return
all such materials and property immediately upon termination of the Executive's employment for any reason. The Executive will not retain with the Executive any such material or property or any copies
thereof after such termination. 

        (d)    Noncompetition and Nonsolicitation.    During the period of the Executive's employment by the Employers and for
12 months (18 months in the event of a termination of employment following a Change in Control pursuant to Section 4(f)(vii)) thereafter, the Executive (i) will not,
directly or indirectly, whether as owner, partner, shareholder, consultant, agent, employee, co-venturer or otherwise, engage, participate, assist or invest in any Competing Business (as 

9

 

hereinafter
defined); (ii) will refrain from directly or indirectly employing, attempting to employ, recruiting or otherwise soliciting, inducing or influencing any person to leave employment
with the Employers (other than terminations of employment of subordinate employees undertaken in the course of the Executive's employment with the Employers); and (iii) will refrain from
soliciting or encouraging any customer or supplier to terminate or otherwise modify adversely its business relationship with the Employers. The Executive understands that the restrictions set forth in
this Section 7(d) are intended to protect the Employers' interest in their Confidential Information and established employee, customer and supplier relationships and goodwill, and agrees that
such restrictions are reasonable and appropriate for this purpose. For purposes of this Agreement, the term "Competing Business" shall mean a business conducted anywhere in any town in which the Bank
has a branch or any town contiguous thereto or within a 50-mile radius of the Employers' headquarters which is competitive with any business which the Employers or any of their affiliates
conducts or proposes to conduct at any time during the employment of the Executive. Notwithstanding the foregoing, the Executive may own up to 1 percent of the outstanding stock of a publicly
held corporation which constitutes or is affiliated with a Competing Business. 

        (e)    Third-Party Agreements and Rights.    The Executive hereby confirms that the Executive is not bound by the
terms of any agreement with any previous employer or other party which restricts in any way the Executive's use or disclosure of information or the Executive's engagement in any business. The
Executive represents to the Employers that the Executive's execution of this Agreement, the Executive's employment with the Employers and the performance of the Executive's proposed duties for the
Employers will not violate any obligations the Executive may have to any such previous employer or other party. In the Executive's work for the Employers, the Executive will not disclose or make use
of any information in violation of any agreements with or rights of any such previous employer or other party, and the Executive will not bring to the premises of the Employers any copies or other
tangible embodiments of non-public information belonging to or obtained from any such previous employment or other party. 

        (f)    Litigation and Regulatory Cooperation.    Subject to the Executive's other business commitments, during and
after the Executive's employment, the Executive shall cooperate reasonably with the Employers in the defense or prosecution of any claims or actions now in existence or which may be brought in the
future against or on behalf of the Employers which relate to events or occurrences that transpired while the Executive was employed by the Employers. The Executive's reasonable cooperation in
connection with such claims or actions shall include, but not be limited to, being available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the Employers
at mutually convenient times. During and after the Executive's employment, the Executive also shall cooperate reasonably with the Employers in connection with any investigation or review of any
federal, state or local regulatory authority as any such investigation or review relates to events or occurrences that transpired while the Executive was employed by the Employers. The Employers shall
reimburse the
Executive for any reasonable out-of-pocket expenses incurred in connection with the Executive's performance of obligations pursuant to this Section 7(f). 

        (g)    Injunction.    The Executive agrees that it would be difficult to measure any damages caused to the Employers
which might result from any breach by the Executive of the promises set forth in this Section 7, and that in any event money damages would be an inadequate remedy for any such breach.
Accordingly, subject to Section 8 of this Agreement, the Executive agrees that if the Executive breaches, or proposes to breach, any portion of this Agreement, the Employers shall be entitled,
in addition to all other remedies that it may have, to an injunction or other appropriate equitable relief to restrain any such breach without showing or proving any actual damage to the Employers. 

10

 

        8.    Arbitration of Disputes.    Any controversy or claim arising out of or relating to this Agreement or the breach
thereof or otherwise arising out of the Executive's employment or the termination of that employment (including, without limitation, any claims of unlawful employment discrimination whether based on
age or otherwise) shall, to the fullest extent permitted by law, be settled by arbitration in any forum and form agreed upon by the parties or, in the absence of such an agreement, under the auspices
of the American Arbitration Association ("AAA") in Boston, Massachusetts in accordance with the Employment Dispute Resolution Rules of the AAA, including, but not limited to, the rules and procedures
applicable to the selection of arbitrators. In the event that any person or entity other than the Executive or the Company may be a party with regard to any such controversy or claim, such controversy
or claim shall be submitted to arbitration subject to such other person or entity's agreement. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction
thereof. This Section 8 shall be specifically enforceable. Notwithstanding the foregoing, this Section 8 shall not preclude either party from pursuing a court action for the sole purpose
of obtaining a temporary restraining order or a preliminary injunction in circumstances in which such relief is appropriate; provided that any other relief shall be pursued through an arbitration
proceeding pursuant to this Section 8. 

        9.    Consent to Jurisdiction.    To the extent that any court action is permitted consistent with or to enforce
Section 8 of this Agreement, the parties hereby consent to the jurisdiction of the Superior Court of the Commonwealth of Massachusetts and the United States District Court for the District of
Massachusetts. Accordingly, with respect to any such court action, the Employers and the Executive (a) submit to the personal jurisdiction of such courts; (b) consent to service of
process; and (c) waive any other requirement (whether imposed by statute, rule of court, or otherwise) with respect to personal jurisdiction or service of process. 

        10.    Integration.    This Agreement constitutes the entire agreement between the parties with respect to the subject
matter hereof and supersedes all prior agreements between the parties concerning such subject matter. 

        11.    Successor to the Executive.    This Agreement shall inure to the benefit of and be enforceable by the
Executive's personal representatives, executors, administrators, heirs, distributees, devisees and legatees. In the event of the Executive's death after his termination of employment but prior to the
completion by the Employers of all payments due him under this Agreement, the Employers shall continue such payments to the Executive's beneficiary designated in writing to the Employers prior to his
death (or to his estate, if the Executive fails to make such designation). 

        12.    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. 

        13.    Waiver.    No waiver of any provision hereof shall be effective unless made in writing and signed by the
waiving party. The failure of any party to require the performance of any term or obligation of this Agreement, or the waiver by any 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. 

        14.    Notices.    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 the
Executive at the last address the Executive has filed in writing with the Employers or, in the case of the Employers, at their main offices, attention of the Board. 

11

 

        15.    Amendment.    This Agreement may be amended or modified only by a written instrument signed by the Executive
and by a duly authorized representative of the Company. 

        16.    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. 

        17.    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; but such counterparts shall together constitute one and the same document. 

        18.    Successor to Company.    The Company shall require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company expressly to assume and agree to perform this Agreement to the same extent that the Company
would be required to perform it if no succession had taken place. Failure of the Company to obtain an assumption of this Agreement at or prior to the effectiveness of any succession shall be a breach
of this Agreement and shall constitute Good Reason if the Executive elects to terminate employment. 

        19.    Reductions.    Notwithstanding anything to the contrary contained in this Agreement, any and all payments and
benefits to be provided to the Executive hereunder are subject to reduction to the extent required by applicable statutes, regulations, rules and directives of federal, state and other governmental
and regulatory bodies having jurisdiction over the Bank or the Company. The Executive confirms that the Executive is aware of the fact that the Federal Deposit Insurance Corporation has the power to
preclude the Bank from making payments to the Executive under this Agreement under certain circumstances. The Executive agrees that neither the Bank nor the Company shall be deemed to be in breach of
this Agreement if it is precluded from making a payment otherwise payable hereunder by reason of regulatory requirements binding on the Bank or the Company, as the case may be. 

        20.    Gender Neutral.    Wherever used herein, a pronoun in the masculine gender shall be considered as including the
feminine gender unless the context clearly indicates otherwise. 

        21.    Allocation of Obligations Between Employers.    The obligations of the Employers under this Agreement are
intended to be the joint and several obligations of the Bank and the Company, and the Employers shall, as between themselves, allocate these obligations in a manner agreed upon by them. 

        22.    No Mitigation.    The Executive shall not be required to mitigate the amount of any payment provided for in
this Agreement by seeking other employment or otherwise. No payment provided for in this Agreement shall be reduced by any compensation earned by the Executive as the result of employment by another
employer, or the Executive's receipt of income from any other source, after the termination of his employment with the Employers. 

        23.    Indemnification.    The Executive shall be entitled at all times to be indemnified by the Employers to the
maximum extent permitted by law. For the avoidance of doubt, the Executive shall have the right to indemnification, including reasonable attorneys fees, for any actions arising from allegations
against the Company or the Bank if the Executive is also named as a defendant, or called or identified as a witness or deponent, including without limitation a government investigation, and/or a right
to coverage under
applicable insurance policies, if any, all also to the maximum extent permitted by law. The provisions of this Section 23 shall survive termination of this Agreement. 

        24.    Legal Fees.    The Employers shall pay to the Executive all reasonable legal fees and expenses incurred by the
Executive in the preparation of this Agreement. 

12

 

        25.    Special Amendments.    It is the intention of the Employers and the Executive that this Agreement, and all
amounts payable to the Executive under this Agreement that are subject thereto, shall meet the requirements of Section 409A of the Code, to the extent applicable to the Agreement and such
payments. The provisions of the Agreement shall be interpreted in a manner consistent with such intent, and the Employers and the Executive agree to cooperate in good faith in preparing and executing,
from time to time, such amendments to the Agreement as may be reasonably necessary or appropriate in order to assure that the Agreement and such payments meet the requirements of Section 409A,
provided, however, that no such amendment shall increase the cost to the Employers of providing benefits pursuant to the Agreement. 

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

	 	 	DANVERS BANCORP, INC.
	

 	
 	
By:	

 Kevin T. Bottomley

Chairman, President and Chief Executive Officer
	 	 	 	 
	 	 	 	 
	 	 	DANVERSBANK
	

 	
 	
By:	

 Kevin T. Bottomley

Chairman, President and Chief Executive Officer
	 	 	 	 
	 	 	 	 
	 	 	
 John J. O'Neil

13

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EXHIBIT 10.11  

 
 

CHANGE IN CONTROL AGREEMENT    
    

        AGREEMENT made as of this    day
of                        , 2007 by and among Danvers Bancorp, Inc., a Delaware company (the "Company"), and its
subsidiary, Danversbank, a Massachusetts savings bank with its main office in Danvers, Massachusetts (the "Bank") (the Bank and the Company shall be hereinafter collectively referred to as the
"Employers"), and                        (the "Executive"). 

        1.    Purpose.    The Company consider it essential to the best interests of its stockholders to promote and preserve
the continuous employment of key management personnel. The Board of Directors of the Company (the "Board") recognizes that, as is the case with many corporations, the possibility of a Change in
Control (as defined in Section 2 hereof) exists and that such possibility, and the uncertainty and questions that it may raise among management, may result in the departure or distraction of
key management personnel to the detriment of the Company and its stockholders. Therefore, the Board has determined that appropriate steps should be taken to reinforce and encourage the continued
attention and dedication of members of the Employers' key management, including the Executive, to their assigned duties without distraction in the face of potentially disturbing circumstances arising
from the possibility of a Change in Control. Nothing in this Agreement shall be construed as creating an express or implied contract of employment and, except as otherwise agreed in writing between
the Executive and the Employers, the Executive shall not have any right to be retained in the employ of the Employers. 

        2.    Change in Control.    A "Change in Control" shall be deemed to have occurred upon the occurrence of any one of
the following events: 

        (a)   any
"Person," as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the "Act") (other than the Company, any of its
subsidiaries, or any trustee, fiduciary or other person or entity holding securities under any employee benefit plan or trust of the Company or any of its subsidiaries), together with all "affiliates"
and "associates" (as such terms are defined in Rule 12b-2 under the Act) of such person, shall become the "beneficial owner" (as such term is defined in
Rule 13d-3 under the Act), directly or indirectly, of securities of the Company representing 25 percent or more of the combined voting power of the Company's then outstanding
securities having the right to vote in an election of the Company's Board of Directors
("Voting Securities") (in such case other than as a result of an acquisition of securities directly from the Company); or 

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

        (c)   the
consummation of (A) any consolidation or merger of the Company where the stockholders of the Company, immediately prior to the consolidation or merger, would
not, immediately after the consolidation or merger, beneficially own (as such term is defined in Rule 13d-3 under the Act), directly or indirectly, shares representing in the
aggregate more than 50 percent of the voting shares of the Company issuing cash or securities in the consolidation or 

 

merger
(or of its ultimate parent corporation, if any), or (B) any sale, lease, exchange or other transfer (in one transaction or a series of transactions contemplated or arranged by any party
as a single plan) of all or substantially all of the assets of the Company; or 

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

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

        3.    Terminating Event.    A "Terminating Event" shall mean any of the events provided in this Section 3: 

        (a)   Termination by the Employers. Termination by the Employers of the employment of the Executive with the Employers for any
reason other than for Cause, death or Disability. For purposes of this Agreement, "Cause" shall mean: 

        (i)    conduct
by the Executive constituting a material act of willful misconduct in connection with the performance of his duties, including, without limitation,
misappropriation of funds or property of the Employers other than the occasional, customary and de minimis use of Employers' property for personal purposes; or 

        (ii)   the
commission by the Executive of any felony or a misdemeanor involving moral turpitude, deceit, dishonesty or fraud, or any conduct by the Executive that would
reasonably be expected to result in material injury to the Employers if he were retained in his position; or 

        (iii)  continued,
willful and deliberate non-performance by the Executive of his duties to the Employers (other than by reason of the Executive's physical or
mental illness, incapacity or disability) which has continued for more than 30 days following written notice of such non-performance from the Chief Executive Officer; or 

        (iv)  a
violation by the Executive of the Employers' employment policies which has continued following written notice of such violation from the Chief Executive Officer; or 

        (v)   willful
failure to cooperate with a bona fide internal investigation or an investigation by regulatory or law enforcement authorities, after being instructed by the
Employers to cooperate, or the willful destruction or failure to preserve documents or other materials known to be relevant to such investigation or the willful inducement of others to fail to
cooperate or to produce documents or other materials; or 

        (vi)  removal
or prohibition of the Executive from participating in the conduct of the Employers' affairs by order issued under applicable law and regulations by a federal or
state banking agency having authority over the Employers. 

        A
Terminating Event shall not be deemed to have occurred pursuant to this Section 3(a) solely as a result of the Executive being an employee of any direct or indirect successor to
the business or assets of the Company, rather than continuing as an employee of the Company following a Change in 

2

 

Control.
For purposes of clauses (i), (iii) and (v) hereof, no act, or failure to act, on the Executive's part shall be deemed "willful" unless done, or omitted to be done, by the
Executive without reasonable belief that the Executive's act, or failure to act, was in the best interests of the Employers. For purposes hereof, the Executive will be considered "Disabled" if, as a
result of the Executive's incapacity due to physical or mental illness, the Executive shall have been absent from his duties to the Employers on a full-time basis for 180 calendar days in
the aggregate in any 12-month period. 

        (b)   Termination by the Executive for Good Reason. Termination by the Executive of the Executive's employment with the
Employers for Good Reason. For purposes of this Agreement, "Good Reason" shall mean the occurrence of any of the following events: 

        (i)    a
substantial diminution or other substantial adverse change, not consented to by the Executive, in the nature or scope of the Executive's responsibilities, authorities,
powers, functions or duties from the responsibilities, authorities, powers, functions or duties exercised by the Executive immediately prior to the Change in Control; or 

        (ii)   a
substantial reduction in the Executive's annual base salary as in effect on the date hereof or as the same may be increased from time to time hereafter except for
across-the-board reductions similarly affecting all or substantially all management employees; or 

        (iii)  the
relocation of the Employers' offices at which the Executive is principally employed immediately prior to the date of a Change in Control (the "Current Offices") to
any other location more than 50 miles from the Current Offices, or the requirement by the Employers for the Executive to be based anywhere other than the Current Offices, except for required travel on
the Employers' business to an extent substantially consistent with the Executive's business travel obligations immediately prior to the Change in Control; or 

        (iv)  the
failure by the Company to obtain an effective agreement from any successor to assume and agree to perform this Agreement, as required by Section 20. 

        4.    Change in Control Payment.    In the event a Terminating Event occurs within 12 months after a Change in
Control, the following shall occur: 

        (a)   the
Employers shall pay to the Executive an amount equal to one and one-half times the sum of (i) the Executive's annual base salary in effect
immediately prior to the Terminating Event (or the Executive's annual base salary in effect immediately prior to the Change in Control, if higher) and (ii) the greater of Executive's target
cash bonus for the year of termination or the Executive's highest cash bonus earned in the three years preceding the Change in Control, payable in one lump-sum payment no later than three
days following the Date of Termination; and 

        (b)   subject
to the Executive's copayment of premium amounts at the active employees' rate, the Executive shall continue to participate in the Employers' group health, dental
and vision program for 18 months; provided, however, that the continuation of health benefits under this Section shall reduce and count against the Executive's rights under the Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended ("COBRA"). 

        (c)   Anything
in this Agreement to the contrary notwithstanding, if at the time of the Executive's separation from service within the meaning of Section 409A of the
Internal Revenue Code of 1986, as amended (the "Code"), the Executive is considered a "specified employee" within the meaning of Section 409A(a)(2)(B)(i) of the Code, and if any payment
or benefit that the Executive becomes entitled to under this Agreement is considered deferred compensation subject to interest, penalties and additional tax imposed pursuant to Section 409A(a)
of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code, then no such payment shall be payable or benefit shall be provided prior to the date that is the
earlier of (i) six months and 

3

 

one
day after the Executive's separation from service, or (ii) the Executive's death. The parties intend that this Agreement will be administered in accordance with Section 409A of the
Code. The parties agree that this Agreement may be amended, as reasonably requested by either party, and as may be necessary to fully comply with Section 409A of the Code and all related rules
and regulations in order to preserve the payments and benefits provided hereunder without additional cost to either party. 

        5.    Additional Limitation.    Anything in this Agreement to the contrary notwithstanding, in the event that any
compensation, payment or distribution by the Employers to or for the benefit of the Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or
otherwise (the "Severance Payments"), would be subject to the excise tax imposed by Section 4999 of the Code, then the benefits payable under this Agreement shall be reduced (but not below
zero) to the extent necessary so that the maximum Severance Payments shall not exceed the Threshold Amount. To the extent that there is more than one method of reducing the payments to bring them
within the Threshold Amount, the Executive shall determine which method shall be followed; provided that if the Executive fails to make such determination within 15 business days after the Employers
have sent the Executive written notice of the need for such reduction, the Employers may determine the amount of such reduction in its sole discretion. 

        For
the purposes of this Section 5, "Threshold Amount" shall mean three times the Executive's "base amount" within the meaning of Section 280G(b)(3) of the Code and the
regulations promulgated thereunder less one dollar ($1.00); and "Excise Tax" shall mean the excise tax imposed by Section 4999 of the Code, and any interest or penalties incurred by the
Executive with respect to such excise tax. 

        6.    Term.    This Agreement shall take effect on the date first set forth above and shall terminate upon the
earliest of (a) the termination by the Employers of the employment of the Executive for Cause or the failure by the Executive to perform his full-time duties with the Employers by
reason of his death or Disability, (b) the resignation or termination of the Executive's employment for any reason prior to a Change in Control, (c) the termination of the Executive's
employment with the Employers after a Change in Control for any reason other than the occurrence of a Terminating Event, or (d) the date which is 12 months after a Change in Control. 

        7.    Withholding.    All payments made by the Employers under this Agreement shall be net of any tax or other amounts
required to be withheld by the Employers under applicable law. 

        8.    Notice and Date of Termination.    

        (a)   Notice of Termination.    After a Change in Control and during the term of this Agreement, any purported
termination of the Executive's employment (other than by reason of death) shall be communicated by written Notice of Termination from one party hereto to the other party hereto in accordance with this
Section 8. For purposes of this Agreement, a "Notice of Termination" shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon and the Date of
Termination. 

        (b)   Date of Termination.    "Date of Termination," with respect to any purported termination of the Executive's
employment after a Change in Control and during the term of this Agreement, shall mean the date specified in the Notice of Termination. In the case of a termination by the Employers other than a
termination for Cause (which may be effective immediately), the Date of Termination shall not be less than 30 days after the Notice of Termination is given. In the case of a termination by the
Executive, the Date of Termination shall not be less than 30 days from the date such Notice of Termination is given. Notwithstanding the foregoing, in the event that the Executive gives a
Notice of Termination to the Employers, the Employers may unilaterally accelerate the Date of Termination and such acceleration shall not result in a termination by the Employers for purposes of this
Agreement. 

4

 

        9.    No Mitigation.    The Employers agree that, if the Executive's employment by the Employers is terminated during
the term of this Agreement, the Executive is not required to seek other employment or to attempt in any way to reduce any amounts payable to the Executive by the Employers pursuant to Section 4
hereof. Further, the amount of any payment provided for in this Agreement shall not be reduced by any compensation earned by the Executive as the result of employment by another employer, by
retirement benefits, by offset against any amount claimed to be owed by the Executive to the Employers or otherwise. 

        10.    Arbitration of Disputes.    Any controversy or claim arising out of or relating to this Agreement or the breach
thereof or otherwise arising out of the Executive's employment or the termination of that employment (including, without limitation, any claims of unlawful employment discrimination whether based on
age or otherwise) shall, to the fullest extent permitted by law, be settled by arbitration in any forum and form agreed upon by the parties or, in the absence of such an agreement, under the auspices
of the American Arbitration Association ("AAA") in Boston, Massachusetts in accordance with the Employment Dispute Resolution Rules of the AAA, including, but not limited to, the rules and procedures
applicable to the selection of arbitrators. In the event that any person or entity other than the Executive or the Employers may be a party with regard to any such controversy or claim, such
controversy or claim shall be submitted to arbitration subject to such other person or entity's agreement. Judgment upon the award rendered by the arbitrator may be entered in any court having
jurisdiction thereof. This Section 10 shall be specifically enforceable. Notwithstanding the foregoing, this Section 10 shall not preclude either party from pursuing a court action for
the sole purpose of obtaining a temporary restraining order or a preliminary injunction in circumstances in which such relief is appropriate; provided that any other relief shall be pursued through an
arbitration proceeding pursuant to this Section 10. 

        11.    Consent to Jurisdiction.    To the extent that any court action is permitted consistent with or to enforce
Section 10 of this Agreement, the parties hereby consent to the jurisdiction of the Superior Court of the Commonwealth of Massachusetts and the United States District Court for the District of
Massachusetts. Accordingly, with respect to any such court action, the Executive (a) submits to the personal jurisdiction of such courts; (b) consents to service of process; and
(c) waives any other requirement (whether imposed by statute, rule of court, or otherwise) with respect to personal jurisdiction or service of process. 

        12.    Integration.    This Agreement constitutes the entire agreement between the parties with respect to the subject
matter hereof and supersedes in all respects all prior agreements between the parties concerning such subject matter. 

        13.    Successor to the Executive.    This Agreement shall inure to the benefit of and be enforceable by the
Executive's personal representatives, executors, administrators, heirs, distributees, devisees and legatees. In the event of the Executive's death after a Terminating Event but prior to the completion
by the Employers of all payments due him under Section 4 of this Agreement, the Employers shall continue such payments to the Executive's beneficiary designated in writing to the Employers
prior to his death (or to his estate, if the Executive fails to make such designation). 

        14.    Enforceability.    If any portion or provision 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. 

        15.    Waiver.    No waiver of any provision hereof shall be effective unless made in writing and signed by the
waiving party. The failure of any party to require the performance of any term or obligation of this Agreement, or the waiver by any party of any breach of this Agreement, shall not 

5

 

prevent
any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach. 

        16.    Notices.    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 registered or certified mail, postage prepaid, to the Executive at the last address the Executive has filed in writing with the Employers,
or to the Employers at its main office, attention of the Board of Directors. 

        17.    Amendment.    This Agreement may be amended or modified only by a written instrument signed by the Executive
and by duly authorized representatives of the Employers. 

        18.    Effect on Other Plans.    An election by the Executive to resign after a Change in Control under the provisions
of this Agreement shall not be deemed a voluntary termination of employment by the Executive for the purpose of interpreting the provisions of any of the Employers' benefit plans, programs or
policies. Nothing in this Agreement shall be construed to limit the rights of the Executive under the Employers' benefit plans, programs or policies except as otherwise provided in Section 5
hereof, and except that the Executive shall have no rights to any severance benefits under any Company or Bank severance pay plan. In the event that the Executive is party to an employment agreement
with the Employers providing for change in control payments or benefits, the Executive must elect to receive either the benefits payable under such other agreement or the benefits payable under this
Agreement, but not both. The Executive shall make such an election in the event of a Change in Control. 

        19.    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. 

        20.    Successors to Company.    The Company shall require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company to expressly assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform if no such succession had taken place. Failure of the Company to obtain an assumption of this Agreement at or prior to the effectiveness of any
succession shall be a breach of this Agreement and shall constitute Good Reason if the Executive elects to terminate employment. 

        21.    Gender Neutral.    Wherever used herein, a pronoun in the masculine gender shall be considered as including the
feminine gender unless the context clearly indicates otherwise. 

        22.    Allocation of Obligations Between Employers.    The obligations of the Employers under this Agreement are
intended to be the joint and several obligations of the Bank and the Company, and the Employers shall, as between themselves, allocate these obligations in a manner agreed upon by them. 

6

 

        IN
WITNESS WHEREOF, this Agreement has been executed as a sealed instrument by the Company by its duly authorized officer, and by the Executive, as of the date first above written. 

	 	 	DANVERS BANCORP, INC.
	

 	
 	

By:	

	 	 	 	Name:
	 	 	 	Title:
	 	 	 	 
	 	 	DANVERSBANK
	

 	
 	

By:	

	 	 	 	Name:
	 	 	 	Title:
	 	 	 	 
	 	 	 	 
	 	 	
 [Executive]

7

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CHANGE IN CONTROL AGREEMENT

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