Document:

EXHIBIT 10.1

 Exhibit 10.1 
  
 SAVINGS INSTITUTE BANK AND TRUST COMPANY 
  
 EMPLOYEE STOCK OWNERSHIP PLAN 
  

Effective as of January 1, 2004 
  

 SAVINGS INSTITUTE BANK AND TRUST COMPANY 
 EMPLOYEE STOCK OWNERSHIP PLAN 
 CERTIFICATION 
  
 I, Rheo A. Brouillard, President and Chief Executive Officer of the Savings
Institute Bank and Trust Company hereby certify that the attached Savings Institute Bank and Trust Company Employee Stock Ownership Plan, effective January 1, 2004, was adopted at a duly held meeting of the Board of Directors of the Bank.

  

									
	 ATTEST:
	 	 	 	 SAVINGS INSTITUTE BANK AND TRUST COMPANY

					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	             Rheo A. Brouillard
             President and Chief Executive Officer

	 	 	 	 	 	 
					
	 	 	 	 	 	 	 Date:
	 	 

  

 Savings Institute Bank and Trust Company 
 Employee Stock Ownership Plan 
  
 Table of Contents 
  

			
	 Section 1 - Introduction
	  	1
		
	 Section 2 - Definitions
	  	2
		
	 Section 3 - Eligibility and Participation
	  	10
		
	 Section 4 - Contributions
	  	12
		
	 Section 5 - Plan Accounting
	  	15
		
	 Section 6 - Vesting and Forfeitures
	  	22
		
	 Section 7 - Distributions
	  	25
		
	 Section 8 - Voting of Company Stock and Tender Offers
	  	30
		
	 Section 9 - The Committee and Plan Administration
	  	31
		
	 Section 10 - Rules Governing Benefit Claims
	  	35
		
	 Section 11 - The Trust
	  	36
		
	 Section 12 - Adoption, Amendment and Termination
	  	37
		
	 Section 13 - General Provisions
	  	39
		
	 Section 14 - Top-Heavy Provisions
	  	41

  

 SECTION 1 
 Introduction 
  
 Section 1.01 Nature
of the Plan. 
  
 Effective as of January 1, 2004 (the “Effective
Date”), Savings Institute Bank and Trust Company (the “Bank”) hereby establishes the Savings Institute Bank and Trust Company Employee Stock Ownership Plan (the “Plan”) to enable Eligible Employees (as defined in Section
2.01(o) of the Plan) to acquire stock ownership interests in SI Financial Group, Inc. (the “Company”), the holding company of the Bank. The Bank intends this Plan to be a tax-qualified stock bonus plan under Section 401(a) of the Internal
Revenue Code of 1986, as amended (the “Code”), and an employee stock ownership plan within the meaning of Section 407(d)(6) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and Sections 409 and
4975(e)(7) of the Code. The Plan is designed to invest primarily in the common stock of the Company, which stock constitutes “qualifying employer securities” within the meaning of Section 407(d)(5) of ERISA and Sections 409(l) and
4975(e)(8) of the Code. Accordingly, the Plan and Trust Agreement (as defined in Section 2.01(mm) of the Plan) shall be interpreted and applied in a manner consistent with the Bank’s intent for it to be a tax-qualified plan designed to invest
primarily in qualifying employer securities. 
  
 The Plan reflects certain
provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”). The provisions related to EGTRRA are intended as good faith compliance with EGTRRA and the guidance issued thereunder. To the extent any provision of
the Plan was operated according to an effective date earlier than as required by law, then such date shall be the effective date with respect to that provision of the Plan. 
  
 Section 1.02 Employers and Affiliates. 
  
 The Bank and each of its Affiliates (as defined in Section 2.01(c) of the Plan) that, with the consent of the Bank, adopt the Plan pursuant
to the provisions of Section 12.01 of the Plan are collectively referred to as the “Employers” and individually as an “Employer.” The Plan shall be treated as a single plan with respect to all participating Employers. 

 

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 SECTION 2 
 Definitions 
  
 Section 2.01
Definitions. 
  
 In this Plan, whenever the context so indicates, the
singular or the plural number and the masculine or feminine gender shall be deemed to include the other, the terms “he,” “his,” and “him,” shall refer to a Participant or Beneficiary, as the case may be, and, except as
otherwise provided, or unless the context otherwise requires, the capitalized terms shall have the following meanings: 
  

	(a)	“Account” or “Accounts” mean a Participant’s or Beneficiary’s Company Stock Account and/or his Other Investments Account, as the context
so requires. 

  

	(b)	“Acquisition Loan” means a loan or other extension of credit, including an installment obligation to a “party in interest” (as defined in Section 3(14) of
ERISA) incurred by the Trustee in connection with the purchase of Company Stock. 

  

	(c)	“Affiliate” means any corporation, trade or business, which, at the time of reference, is together with the Bank, a member of a controlled group of corporations, a
group of trades or businesses (whether or not incorporated) under common control, or an affiliated service group, as described in Sections 414(b), 414(c), and 414(m) of the Code, respectively, or any other organization treated as a single employer
with the Bank under Section 414(o) of the Code; provided, however, that, where the context so requires, the term “Affiliate” shall be construed to give full effect to the provisions of Sections 409(l)(4) and 415(h) of the Code.

  

	(d)	“Bank” means Savings Institute Bank and Trust Company, and any entity that succeeds to the business of the Savings Institute Bank and Trust Company and adopts this
Plan in accordance with the provisions of Section 12.02 of the Plan, or by written agreement assumes the obligations of the Plan. 

  

	(e)	“Beneficiary” means the person(s) entitled to receive benefits under the Plan following a Participant’s death, pursuant to Section 7.03 of the Plan.

  

	(f)	“Change in Control” means any one of the following events occurs: 

  

	 	(i)	Merger: The Company merges into or consolidates with another corporation, or merges another corporation into the Company, 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 immediately before the merger or consolidation; 

  

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	 	(ii)	Acquisition of Significant Share Ownership: The Company files, or is required to file, 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 Plan to the contrary, in no event shall the conversion of the Bank from the mutual to stock
form (including, without limitation, the formation of a stock holding company), or the reorganization of the Bank into the mutual holding company form of organization, constitute a “Change in Control” for purposes of this Plan. 

 

	(g)	“Code” means the Internal Revenue Code of 1986, as amended. 

  

	(h)	“Committee” means the individual(s) responsible for the administration of the Plan in accordance with Section 9 of the Plan. 

  

	(i)	“Company” means SI Financial Group, Inc. and any entity which succeeds to the business of SI Financial Group, Inc. 

  

	(j)	“Company Stock” means shares of the voting common stock or preferred stock, meeting the requirements of Section 409 of the Code and Section 407(d)(5) of ERISA,
issued by the Company or its Affiliates. 

  

	(k)	“Company Stock Account” means the account established and maintained in the name of each Participant or Beneficiary to reflect his share of the Trust Fund invested
in Company Stock. 

  

 3 

	(l)	“Compensation” means: 

  

	 	(i)	an Employee’s total salary, wages and other compensation paid during the Plan Year by the Employer that is currently includable in gross income for federal tax purposes,
excluding fringe benefits, reimbursements or other expense allowances. Compensation shall include the amounts of any Employer contributions made pursuant to a salary reduction agreement entered into by the Participant and not includible in the gross
income of the employee under Sections 125, 132(f), 402(e)(8), 402(h), 403(b) or 457 of the Code. 

  

	 	(ii)	Notwithstanding the above, Compensation shall not include contributions made by the Employer to any other pension, deferred compensation, welfare or other employee benefit plan
[amounts realized from the exercise of a non-qualified stock option or the sale of a qualified stock option], and other amounts which receive special tax benefits. Compensation shall also not include any form of severance
payments, whether for past, present or future services, or otherwise paid to any Employee subsequent to the Employee’s termination of employment with the Employer. This subsection (ii) shall not apply to a former Employee’s final regular
paycheck that may be received by the Employee in the normal course of business, after the Employee’s termination of employment. 

  
 A Participant’s Compensation shall not exceed $200,000 (as periodically adjusted pursuant to Section 401(a)(17) of the Code). If the Plan Year for
which a Participant’s Compensation is measured is less than twelve (12) calendar months, then the amount of Compensation taken into account for such Plan Year shall be the adjusted amount for such Plan Year, as prescribed by the Secretary of
the Treasury under Section 401(a)(17) of the Code, multiplied by a fraction, the numerator of which is the number of months taken into account for such Plan Year and the denominator of which is twelve (12). In determining the dollar limitation
hereunder, Compensation received from an Affiliate shall be recognized as Compensation. 
  

	(m)	“Disability” means a physical or mental condition of a Participant resulting from bodily injury, disease, or mental disorder which renders him incapable of
continuing any gainful occupation and which condition constitutes total disability under the federal Social Security Act. The Disability of a Participant shall be conclusively determined by the Plan Administrator. 

  

	(n)	“Effective Date” means January 1, 2004. 

  

	(o)	“Eligible Employee” means any Employee who is not precluded from participating in the Plan by reason of the provisions of Section 3.02 of the Plan.

  

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	(p)	“Employee” means any person who is actually performing services for the Employer or an Affiliate in a common-law, employer-employee relationship as determined under
Sections 31.3121(d)-1, 31.3306(i)-1, or 31.3401(c)-1 of the Treasury Regulations and any “Leased Employee” as defined in Section 3.02(b) of this Plan. 

  

	(q)	“Employer” or “Employers” means the Bank and any of its Affiliates that adopt the Plan in accordance with the provisions of Section 12.01 of the
Plan, and any entity which succeeds to the business of the Bank or its Affiliates and which adopts the Plan in accordance with the provisions of Section 12.02 of the Plan, or by written agreement assumes the obligations under the Plan.

  

	(r)	“Entry Date” means the first day of the month coinciding with or next following the date the Employee satisfies the requirements under Section 3.01 of the Plan.

  

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

  

	(t)	“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

  

	(u)	“Financed Shares” means shares of Company Stock acquired by the Trustee with the proceeds of an Acquisition Loan, which shall constitute “qualifying employer
securities” under Section 409(l) of the Code and any shares of Company Stock received upon conversion or exchange of such shares. 

  

	(v)	“Highly Compensated Employee” means an Employee who, for a particular Plan Year, satisfies one of the following conditions: 

  

	 	(i)	was a “5-percent owner” (as defined in Section 414(q)(2) of the Code) during the year or the preceding year, or 

  

	 	(ii)	for the preceding year, had “compensation” (as defined in Section 414(q)(4) of the Code) from the Bank and its Affiliates exceeding $90,000 (as periodically adjusted
pursuant to Section 414(q)(1) of the Code). 

  

	(w)	“Hours of Service” means: 

  

	 	(i)	Each hour for which an Employee is paid, or entitled to payment, for performing duties for the Employer during the applicable computation period. 

  

	 	(ii)	Each hour for which an Employee is paid, or entitled to payment, for a period during which no duties are performed (irrespective of whether the employment relationship has
terminated) due to vacation, holiday, illness, incapacity (including disability), layoff, jury duty, military duty or leave of absence. 

  

 5 

 Notwithstanding the preceding sentence, no credit shall be given to the Employee for: 
  

	 	(A)	more than 501 hours under this clause (ii) because of any single continuous period in which the Employee performs no duties (whether or not such period occurs in a single
computation period); 

  

	 	(B)	an hour for which the Employee is directly or indirectly paid, or entitled to payment, because of a period in which no duties are performed if such payment is made or due under a
plan maintained solely for the purpose of complying with applicable worker’s or workmen’s compensation, unemployment, or disability insurance laws; or 

  

	 	(C)	an hour or a payment which solely reimburses the Employee for medical or medically-related expenses incurred by the Employee. 

  

	 	(iii)	Each hour for which back pay, irrespective of mitigation of damages, is either awarded or agreed to by the Employer; provided, however, that hours credited under either clause (i)
or (ii) above shall not also be credited under this clause (iii). Crediting of hours for back pay awarded or agreed to with respect to periods described in clause (ii) above will be subject to the limitations set forth in that clause.

  
 The crediting of Hours of Service shall be determined by the
Committee in accordance with the rules set forth in Section 2530.200b-2 of the regulations prescribed by the Department of Labor, which rules shall be consistently applied with respect to all Employees within the same job classification. If an
Employer finds it impracticable to count actual Hours of Service for any class or group of non-hourly Employees, each Employee in that class or group shall be credited with 45 Hours of Service for each weekly period in which he has at least one Hour
of Service. However, an Employee shall be credited with Hours of Service only for his normal working hours during a paid absence. Hours of Service shall be credited for employment with an Affiliate. 
  
 For purposes of determining whether an Employee has incurred a One Year Break in Service and
for vesting and participation purposes, if an Employee begins a maternity/paternity leave of absence described in Section 411(a)(6)(E)(i) of the Code, his Hours of Service shall include the Hours of Service that would have been credited to him if he
had not been so absent (or 45 Hours of Service for each week of such absence if the actual Hours of Service cannot be determined). An Employee shall be credited for such Hours of Service (up to a maximum of 501 Hours of Service) in the Plan Year in
which his absence begins (if such crediting will prevent him from incurring a One Year Break in Service in such Plan Year) or, in all other cases, in the following Plan Year. An absence from employment for maternity or paternity reasons means an
absence: 
  

	 	(i)	by reason of pregnancy of the Employee, 

  

 6 

	 	(ii)	by reason of the birth of a child of the Employee, 

  

	 	(iii)	by reason of the placement of a child with the Employee in connection with the adoption of such child by such Employee, or 

  

	 	(iv)	for purposes of caring for such child for a period beginning immediately following such birth or placement. 

  

	(x)	“Loan Suspense Account” means that portion of the Trust Fund consisting of Company Stock acquired with an Acquisition Loan which has not yet been allocated to the
Participants’ Accounts. 

  

	(y)	“Normal Retirement Age” means age 65. 

  

	(z)	“Normal Retirement Date” means the first day of the month coincident with or next following the Participant’s attainment of Normal Retirement Age.

  

	(aa)	“One Year Break in Service” means a twelve (12) consecutive month period during which the Participant does not complete more than 500 Hours of Service.

  

	(bb)	“Other Investments Account” means the account established and maintained in the name of each Participant or Beneficiary to reflect his share of the Trust Fund,
other than Company Stock. 

  

	(cc)	“Participant” means any Eligible Employee who has become a Participant in accordance with Section 3.01 of the Plan or any other person with an Account balance under
the Plan. 

  

	(dd)	“Plan” means this Savings Institute Bank and Trust Company Employee Stock Ownership Plan, as amended from time to time. 

  

	(ee)	“Plan Year” means the calendar year. 

  

	(ff)	“Postponed Retirement Date” means the first day of the month coincident with or next following a Participant’s date of actual retirement which occurs after his
Normal Retirement Date. 

  

	(gg)	“Recognized Absence” means a period for which: 

  

	 	(i)	an Employer grants an Employee a leave of absence for a limited period of time, but only if an Employer grants such leaves of absence on a nondiscriminatory basis to all Eligible
Employees; or 

  

 7 

	 	(ii)	an Employee is temporarily laid off by an Employer because of a change in the business conditions of the Employer; or 

  

	 	(iii)	an Employee is on active military duty, but only to the extent that his employment rights are protected by the Military Selective Service Act of 1967 and the Uniformed Services
Employment and Reemployment Rights Act of 1994. 

  

	(hh)	“Retirement Date” means a Participant’s Normal or Postponed Retirement Date, whichever is applicable. 

  

	(ii)	“Service” means employment with the Bank or an Affiliate. 

  

	(jj)	“Termination of Service” means the earlier of (a) the date on which an Employee’s Service is terminated by reason of his resignation, retirement, discharge,
death or Disability or (b) the first anniversary of the date on which such Employee’s service is terminated for disability of a short-term nature or any other reason. Service in the Armed Forces of the United States shall not constitute a
Termination of Service but shall be considered to be a period of employment by the Employer provided (i) such military service is caused by war or other emergency or the Employee is required to serve under the laws of conscription in time of peace,
(ii) the Employee returns to employment with the Employer within six (6) months following discharge from such military service and (iii) such Employee is reemployed by the Employer at a time when the Employee had a right to reemployment at his
former position or substantially similar position upon separation from such military duty in accordance with seniority rights as protected under the laws of the United States. A leave of absence granted to an Employee by the Employer shall not
constitute a Termination of Service provided that the Participant returns to the active service of the Employer at the expiration of any such period for which leave has been granted. Notwithstanding the foregoing, an Employee who is absent from
service with the Employer beyond the first anniversary of the first date of his absence for maternity or paternity reasons set forth in Section 2.01 of the Plan shall incur a Termination of Service for purposes of the Plan on the second anniversary
of the date of such absence. 

  

	(kk)	“Treasury Regulations” mean the regulations promulgated by the Department of the Treasury under the Code. 

  

	(ll)	“Trust” means the Savings Institute Bank and Trust Company Employee Stock Ownership Plan Trust created in connection with the establishment of the Plan.

  

	(mm)	“Trust Agreement” means the trust agreement establishing the Trust. 

  

	(nn)	“Trust Fund” means the assets held in the Trust for the benefit of Participants and their Beneficiaries. 

  

 8 

	(oo)	“Trustee” means the trustee or trustees from time to time in office under the Trust Agreement. 

  

	(pp)	“Valuation Date” means the last day of the Plan Year and each other date as of which the Committee shall determine the investment experience of the Trust Fund and
adjust Participants’ Accounts accordingly. 

  

	(qq)	“Valuation Period” means the period following a Valuation Date and ending with the next Valuation Date. 

  

	(rr)	“Year of Service” shall mean a Plan Year in which an Employee is credited with at least 1,000 Hours of Service. 

  

 9 

 SECTION 3 
 Eligibility and Participation 
  
 Section 3.01 Participation. 
  

	(a)	All Eligible Employees who are employed by an Employer on the date the Company first issues common stock pursuant to its reorganization from a mutual savings and loan association to
a mutual holding company (the “Reorganization Date”) shall enter the Plan and become Participants on the earlier of the Effective Date or the date on which the Eligible Employee first performs an Hour of Service for an Employer.
[CONFIRM] 

  

	(b)	An Eligible Employee who is employed by an Employer after the Reorganization Date shall become a Participant in the Plan upon satisfying the following requirements:

  

	 	(i)	The Eligible Employee is at least 21 years of age; and 

  

	 	(ii)	The Eligible Employee has been employed by the Employer for ninety (90) days. 

  

	(c)	An Eligible Employee who has satisfied the eligibility requirements of Section 3.01(b) shall enter the Plan and become a Participant on the earlier of the Effective Date or the
Entry Date coincident with or next following the date he satisfies such requirements. 

  
 Section 3.02 Certain Employees Ineligible. 
  
 The following Employees are ineligible to participate in the Plan: 
  

	(a)	Employees covered by a collective bargaining agreement between the Employer and the Employee’s collective bargaining representative if: 

  

	 	(i)	retirement benefits have been the subject of good faith bargaining between the Employer and the representative, and 

  

	 	(ii)	the collective bargaining agreement does not expressly provide that Employees of such unit be covered under the Plan; 

  

	(b)	“Leased Employees” who, pursuant to an agreement between the Employer and any other person, including a leasing organization, have performed services for the Employer (or
for the Employer and related persons determined in accordance with Section 414(n)(6) of the Code) on a substantially full-time basis for a period of a least one (1) year, and such services are performed under the primary direction and control of the
Employer; 

  

	(c)	Employees who are nonresident aliens and who receive no earned income from an Employer which constitutes income from sources within the United States; and 

 

 10 

	(d)	Employees of an Affiliate of the Bank that has not adopted the Plan pursuant to Sections 12.01 or 12.02 of the Plan. 

  
 Section 3.03 Transfer to and from Eligible Employment. 
  

	(a)	If an Employee ineligible to participate in the Plan by reason of Section 3.02 of the Plan transfers to employment as an Eligible Employee, he shall enter the Plan as of the later
of: 

  

	 	(i)	the first Entry Date after the date of transfer, or 

  

	 	(ii)	the first Entry Date on which he could have become a Participant pursuant to Section 3.01 of the Plan if his prior employment with the Employer or Affiliate had been as an Eligible
Employee. 

  

	(b)	If a Participant transfers to an employment position that makes him ineligible to participate in the Plan as of the date of such transfer, he shall cease active participation in the
Plan as of such date and his transfer shall be treated for all purposes under the Plan in the same manner as any other termination of Service. 

  
 Section 3.04 Participation after Reemployment. 
  

	(a)	If an Employee incurs a One Year Break in Service prior to satisfying the eligibility requirements of Section 3.01 of the Plan, Service prior to such One Year Break in Service shall
be disregarded and the Employee must satisfy the eligibility requirements of Section 3.01 as a new Employee. 

  

	(b)	If an Employee incurs a One Year Break in Service after satisfying the eligibility requirements of Section 3.01 of the Plan and again performs an Hour of Service, the Employee shall
receive credit for Service prior to his One Year Break in Service and shall be eligible to participate in the Plan immediately upon reemployment, provided the Employee is not excluded from participation under the provisions of Section 3.02 of the
Plan. 

  
 Section 3.05 Participation Not Guarantee of
Employment. 
  
 Participation in the Plan does not constitute a guarantee
or contract of employment and will not give any Employee the right to be retained in the employ of the Bank or any of its Affiliates nor any right or claim to any benefit under the terms of the Plan unless such right or claim has specifically
accrued under the Plan. 
  

 11 

 SECTION 4 
 Contributions 
  
 Section 4.01
Employer Contributions. 
  

	(a)	Discretionary Contributions. Each Plan Year, each Employer, in its discretion, may make a contribution to the Trust. Each Employer making a contribution for any Plan
Year under this Section 4.01(a) will contribute to the Trustee cash equal to, or Company Stock or other property having an aggregate fair market value equal to, such amount as the Board of Directors of the Employer shall determine by resolution.
Notwithstanding the Employer’s discretion with respect to the medium of contribution, an Employer shall not make a contribution in any medium which would make such contribution a prohibited transaction (for which no exemption is provided) under
Section 406 of ERISA or Section 4975 of the Code. 

  

	(b)	Employer Contributions for Acquisition Loans. Each Plan Year, the Employers shall, subject to any regulatory prohibitions, contribute an amount of cash sufficient to
enable the Trustee to discharge any indebtedness incurred with respect to an Acquisition Loan pursuant to the terms of the Acquisition Loan. The Employers’ obligation to make contributions under this Section 4.01(b) shall be reduced to the
extent of any investment earnings attributable to such contributions and any cash dividends paid with respect to Company Stock held by the Trustee in the Loan Suspense Account. If there is more than one Acquisition Loan, the Employers shall
designate the one to which any contribution pursuant to this Section 4.01(b) is to be applied. 

  
 Section 4.02 Limitations on Contributions. 
  
 In no event shall an Employer’s contribution(s) made under Section 4.01 of the Plan for any Plan Year exceed the lesser of: 
  

	(a)	The maximum amount deductible under Section 404 of the Code by that Employer as an expense for Federal income tax purposes; and 

  

	(b)	The maximum amount which can be credited for that Plan Year in accordance with the allocation limitation provisions of Section 5.05 of the Plan. 

  

 12 

 Section 4.03 Acquisition Loans. 
  
 The Trustee may incur Acquisition Loans from time to time to finance the acquisition of Company Stock for the Trust or to repay a prior
Acquisition Loan. An Acquisition Loan shall be for a specific term, shall bear a reasonable rate of interest, shall not be payable in demand, except in the event of default, and shall be primarily for the benefit of Participants and Beneficiaries of
the Plan. An Acquisition Loan may be secured by a collateral pledge of the Financed Shares so acquired and any other Plan assets which are permissible securities within the provisions of Section 54.4975-7(b) of the Treasury Regulations. No other
assets of the Plan or Trust may be pledged as collateral for an Acquisition Loan, and no lender shall have recourse against any other Trust assets. Any pledge of Financed Shares must provide for the release of shares so pledged on a basis equal to
the principal and interest (or if the requirements of Section 54.4975-7(b)(8)(ii) of the Treasury Regulations are met and the Employer so elects, principal payments only), paid by the Trustee on the Acquisition Loan. The released Financed Shares
shall be allocated to Participants’ Accounts in accordance with the provisions of Sections 5.04 or 5.08 of the Plan, whichever is applicable. Payment of principal and interest on any Acquisition Loan shall be made by the Trustee only from the
Employer contributions paid in cash to enable the Trustee to repay such loan in accordance with Section 4.01(b) of the Plan, from earnings attributable to such contributions, and any cash dividends received by the Trustee on Financed Shares acquired
with the proceeds of the Acquisition Loan (including contributions, earnings and dividends received during or prior to the year of repayment less such payments in prior years), whether or not allocated. Financed Shares shall initially be credited to
the Loan Suspense Account and shall be transferred for allocation to the Company Stock Accounts of Participants only as payments of principal and interest (or, if the requirements of Section 54.4975-7(b)(8)(ii) of the Treasury Regulations are met
and the Employer so elects, principal payments only), on the Acquisition Loan are made by the Trustee. The number of Financed Shares to be released from the Loan Suspense Account for allocation to Participants’ Company Stock Account for each
Plan Year shall be based on the ratio that the payments of principal and interest (or, if the requirements of Section 54.4975-7(b)(8)(ii) of the Treasury Regulations are met and the Employer so elects, principal payments only), on the Acquisition
Loan for that Plan Year bears to the sum of the payments of principal and interest on the Acquisition Loan for that Plan Year plus the total remaining payment of principal and interest projected (or, if the requirements of Section
54.4975-7(b)(8)(ii) of the Treasury Regulations are met and the Employer so elects, principal payments only), on the Acquisition Loan over the duration of the Acquisition Loan repayment period, subject to the provisions of Section 5.05 of the Plan.

  
 Section 4.04 Conditions as to Contributions. 
  
 In addition to the provisions of Section 12.03 of the Plan for the return of an
Employer’s contributions in connection with a failure of the Plan to qualify initially under the Code, any amount contributed by an Employer due to a good faith mistake of fact, or based upon a good faith but erroneous determination of its
deductibility under Section 404 of the Code, shall be returned to the Employer within one year after the date on which the Employer originally made such contribution, or within one year after its nondeductibility has been finally determined.

  

 13 

 However, the amount to be returned shall be reduced to take account of any adverse investment experience within the Trust
in order that the balance credited to each Participant Account is not less than it would have been if the contribution had never been made by the Employer. 
  
 Section 4.05 Employee Contributions. 
  
 Employee contributions are neither required nor permitted under the Plan. 
  
 Section 4.06 Rollover Contributions. 
  
 Rollover contributions to the Plan of assets from other tax-qualified retirement plans are not permitted under the Plan. 
  
 Section 4.07 Trustee-to-Trustee Transfers. 
  
 Trustee-to-trustee transfers of assets from other tax-qualified retirement plans are not
permitted under the Plan. 
  

 14 

 SECTION 5 
 Plan Accounting 
  
 Section 5.01
Accounting for Allocations. 
  
 The Committee shall establish the
Accounts (and sub-accounts, if deemed necessary) for each Participant, and the accounting procedures for the purpose of making allocations to Participants’ Accounts as provided for in this Section 5. The Committee shall maintain adequate
records of the cost basis of shares of Company Stock allocated to each Participant’s Company Stock Account. The Committee also shall keep separate records of Financed Shares attributable to each Acquisition Loan and of contributions made by the
Employers (and any earnings thereon) made for the purpose of enabling the Trustee to repay any Acquisition Loan. From time to time, the Committee may modify its accounting procedures for the purpose of achieving equitable and nondiscriminatory
allocations among the Accounts of Participants, in accordance with the provisions of this Section 5 and the applicable requirements of the Code and ERISA. In accordance with Section 9 of the Plan, the Committee may delegate the responsibility for
maintaining Accounts and records. 
  
 Section 5.02 Maintenance of
Participants’ Company Stock Accounts. 
  
 As of each Valuation Date,
the Committee shall adjust the Company Stock Account of each Participant to reflect activity during the Valuation Period as follows: 
  

	(a)	First, charge to each Participant’s Company Stock Account all distributions and payments made to him that have not been previously charged; 

  

	(b)	Next, credit to each Participant’s Company Stock Account the shares of Company Stock, if any, that have been purchased with amounts from his Other Investments Account, and
adjust such Other Investments Account in accordance with the provisions of Section 5.03 of the Plan; 

  

	(c)	Next, credit to each Participant’s Company Stock Account the shares of Company Stock representing contributions made by the Employers in the form of Company Stock and the
number of Financed Shares released from the Loan Suspense Account under Section 4.03 of the Plan that are to be allocated and credited as of that date in accordance with the provisions of Section 5.04 of the Plan; and 

  

	(d)	Finally, credit to each Participant’s Company Stock Account the shares of Company Stock released from the Loan Suspense Account that are to be allocated in accordance with the
provisions of Section 5.09 of the Plan. 

  

 15 

 Section 5.03 Maintenance of Participants’ Other Investments Accounts. 
  
 Except as otherwise provided for under Section 5.08 of the Plan, as of each Valuation Date,
the Committee shall adjust the Other Investments Account of each Participant to reflect activity during the Valuation Period as follows: 
  

	(a)	First, charge to each Participant’s Other Investments Account all distributions and payments made to him that have not previously been charged; 

  

	(b)	Next, if Company Stock is purchased with assets from a Participant’s Other Investments Account, the Participant’s Other Investments Account shall be charged accordingly;

  

	(c)	Next, subject to the dividend provisions of Section 5.09 of the Plan, credit to the Other Investments Account of each Participant any cash dividends paid to the Trustee on shares of
Company Stock held in that Participant’s Company Stock Account (as of the record date for such cash dividends) and dividends paid on shares of Company Stock held in the Loan Suspense Account that have not been used to repay any Acquisition
Loan. Subject to the provisions of Section 5.09 of the Plan, cash dividends that have not been used to repay an Acquisition Loan and have been credited to a Participant’s Other Investments Account shall be applied by the Trustee to purchase
shares of Company Stock, which shares shall then be credited to the Company Stock Account of such Participant. The Participant’s Other Investments Account shall then be charged by the amount of cash used to purchase such Company Stock. In
addition, any earnings on: 

  

	 	(i)	Other Investments Accounts will be allocated to Participants’ Other Investments Accounts, pro rata, based on such Other Investments Account balances as of the first day of the
Valuation Period, and 

  

	 	(ii)	the Loan Suspense Account, other than dividends used to repay the Acquisition Loan, will be allocated to Participants’ Other Investments Accounts, pro rata, based on their
Other Investments Account balances as of the first day of the Valuation Period; 

  

	(d)	Next, allocate and credit the Employer contributions made pursuant to Section 4.01(b) of the Plan for the purpose of repaying any Acquisition Loan, in accordance with Section 5.04
of the Plan. Such amount shall then be used to repay any Acquisition Loan and such Participant’s Other Investments Account shall be charged accordingly; and 

  

	(e)	Finally, allocate and credit the Employer contributions (other than amounts contributed to repay an Acquisition Loan) that are made in cash (or property other than Company Stock)
for the Plan Year to the Other Investments Account of each Participant in accordance with Section 5.04 of the Plan. 

  

 16 

 Section 5.04 Allocation and Crediting of Employer Contributions. 
  

	(a)	Except as otherwise provided for in Sections 5.08 and 5.09 of the Plan, as of the Valuation Date for each Plan Year: 

  

	 	(i)	Company Stock released from the Loan Suspense Account for that year and shares of Company Stock contributed directly to the Plan shall be allocated and credited to each Active
Participant’s (as defined in paragraph (b) of this Section 5.04) Company Stock Account based on the ratio that each Active Participant’s Compensation bears to the aggregate Compensation of all Active Participants for the Plan Year, and
then 

  

	 	(ii)	The cash contributions not used to repay an Acquisition Loan and any other property contributed for that year shall be allocated and credited to each Active Participant’s Other
Investments Account based on the ratio determined by comparing each Active Participant’s Compensation while a Participant to the aggregate Compensation of all Active Participants for the Plan Year. 

  

	(b)	For purposes of this Section 5.04, the term “Active Participant” means those Eligible Employees who: 

  

	 	(i)	are employed on the last day of the Plan Year [and have completed 1,000 Hours of Service during the Plan Year]; or 

  

	 	(ii)	terminated employment during the Plan Year by reason of death, Disability, or attainment of their Normal or Postponed Retirement Date.  

  
 Section 5.05 Limitations on Allocations. 
  

	(a)	In General. Subject to the provisions of this Section 5.05, Section 415 of the Code shall be incorporated by reference into the terms of the Plan. No allocation shall
be made under Section 5.04 of the Plan that would result in a violation of Section 415 of the Code. 

  

	(b)	Code Section 415 Compensation. For purposes of this Section 5.05, Compensation shall be adjusted to reflect the general rule of Section 1.415-2(d) of the Treasury
Regulations. 

  

	(c)	Limitation Year. The “limitation year” (within the meaning of Section 415 of the Code) shall be the calendar year. 

  

	(d)	 Multiple Defined Contribution Plans. In any case where a Participant also participates in another defined contribution plan of the Bank or its
Affiliates, the appropriate committee of such other plan shall first reduce the after-tax contributions under any such plan, shall then reduce any elective deferrals under any such plan subject to Section 

  

 17 

	 	 
401(k) of the Code, shall then reduce all other contributions under any other such plan and, if necessary, shall then reduce contributions under this Plan.

  

	(e)	Excess Allocations. If, after applying the allocation provisions under Section 5.04 of the Plan, allocations under Section 5.04 of the Plan would otherwise result in a
violation of Section 415 of the Code, the Committee shall allocate and reallocate employer contributions to other Participants in the Plan for the limitation year or, if such allocation and reallocation causes the limitations of Section 415 of the
Code to be exceeded, shall hold excess amounts in an unallocated suspense account for allocation in a subsequent Plan Year in accordance with Section 1.415-6(b)(6)(i) of the Treasury Regulations. Such suspense account, if permitted, will be credited
before any allocation of contributions for subsequent limitation years. 

  

	(f)	Allocations Pursuant to Section 5.08. For purposes of this Section 5.05, no amount credited to any Participant’s Account pursuant to Section 5.08 of the Plan
shall be counted as an “annual addition” for purposes of Section 415 of the Code. In the event any amount cannot be allocated to Affected Participants (as defined in Section 5.08 of the Plan) under the Plan pursuant to Section 5.08 of the
Plan in the year of a Change in Control, the amount which may not be so allocated in the year of the Change in Control shall be treated in accordance with paragraph (e) of this Section 5.05. 

  
 Section 5.06 Other Limitations. 
  
 Aside from the limitations set forth in Section 5.05 of the Plan, in no event shall more
than one-third of the Employer contributions to the Plan (including Matching Contributions) be allocated to the Accounts of Highly Compensated Employees. In order to ensure that such allocations are not made, the Committee shall, beginning with the
Participants whose Compensation exceeds the limit then in effect under Section 401(a)(17) of the Code, reduce the amount of Compensation of such Highly Compensated Employees on a pro-rata basis per individual that would otherwise be taken into
account for purposes of allocating benefits under Section 5.04 of the Plan. If, in order to satisfy this Section 5.06, any such Participant’s Compensation must be reduced to an amount that is lower than the Compensation amount of the next
highest paid (based on such Participant’s Compensation) Highly Compensated Employee (the “breakpoint amount”), then, for purposes of allocating benefits under Section 5.04 of the Plan, the Compensation of all concerned Participants
shall be reduced to an amount not to exceed such breakpoint amount. 
  
 Section
5.07 Limitations as to Certain Section 1042 Transactions. 
  
 To the
extent that a shareholder of Company Stock sells qualifying Company Stock to the Plan and elects (with the consent of the Bank) nonrecognition of gain under Section 1042 of the Code, no portion of the Company Stock purchased in such nonrecognition
transaction (or other dividends or other income attributable thereto) may accrue or be allocated during the nonallocation period (the ten (10) year period beginning on the later of the date of the sale of the 

  

 18 

 
qualified Company Stock, or the date of the Plan allocation attributable to the final payment of an Acquisition Loan incurred in connection with such sale)
for the benefit of: 
  

	(a)	the selling shareholder; 

  

	(b)	the spouse, brothers or sisters (whether by the whole or half blood), ancestors or lineal descendants of the selling shareholder or descendant referred to in (a) above; or

  

	(c)	any other person who owns, after application of Section 318(a) of the Code, more than twenty-five percent (25%) of: 

  

	 	(i)	any class of outstanding stock of the Company or any Affiliate, or 

  

	 	(ii)	the total value of any class of outstanding stock of the Company or any Affiliate. 

  
 For purposes of this Section 5.07, Section 318(a) of the Code shall be applied without regard to the employee trust exception of Section
318(a)(2)(B)(i) of the Code. 
  
 Section 5.08 Allocations Upon Termination
Prior to Satisfaction of Acquisition Loan. 
  

	(a)	Notwithstanding any other provision of the Plan, in the event of a Change in Control, the Plan shall terminate as of the effective date of the Change in Control and, as soon as
practicable thereafter, the Trustee shall repay in full any outstanding Acquisition Loan. In connection with such repayment, the Trustee shall: (i) apply cash, if any, received by the Plan in connection with the transaction constituting a Change in
Control, with respect to the unallocated shares of Company Stock acquired with the proceeds of the Acquisition Loan, and (ii) to the extent additionally required to effect the repayment of the Acquisition Loan, obtain cash through the sale of any
stock or security received by the Plan in connection with such transaction, with respect to such unallocated shares of Company Stock. After repayment of the Acquisition Loan, all remaining shares of Company Stock held in the Loan Suspense Account,
all other stock or securities, and any cash proceeds from the sale or other disposition of any shares of Company Stock held in the Loan Suspense Account, shall be allocated among the Accounts of all Participants who were employed by an Employer on
the date immediately preceding the effective date of the Change in Control. Such allocations of shares or cash proceeds shall be credited as earnings for purposes of Section 5.05 of the Plan and Section 415 of the Code, as of the effective date of
the Change in Control, to the Accounts of each Participant who is either in active Service with an Employer, or is on a Recognized Absence, on the date immediately preceding the effective date of the Change of Control (each an “Affected
Participant”), in proportion to the opening balances in their Company Stock Accounts as of the first day of the current Valuation Period. As of the effective date of a Change in Control, all Participant Accounts shall be fully vested and
nonforfeitable. 

  

 19 

	(b)	In the event of a termination of the Plan in connection with a Change in Control, this Section 5.08 shall have no force and effect unless the price paid for the Company Stock in
connection with a Change in Control is greater than the average basis of the unallocated Company Stock held in the Loan Suspense Account as of the date of the Change in Control.  

  
 Section 5.09 Dividends. 
  

	(a)	Stock Dividends. Dividends on Company Stock which are received by the Trustee in the form of additional Company Stock shall be retained in the portion of the Trust
Fund consisting of Company Stock, and shall be allocated among the Participants’ Accounts and the Loan Suspense Account in accordance with their holdings of the Company Stock on which the dividends have been paid. 

  

	(b)	Cash Dividends on Allocated Shares. Dividends on Company Stock credited to Participants’ Accounts which are received by the Trustee in the form of cash shall, at
the direction of the Bank, either: 

  

	 	(i)	be credited to Participants’ Accounts in accordance with Section 5.03 of the Plan and invested as part of the Trust Fund; 

  

	 	(ii)	be distributed immediately to the Participants; 

  

	 	(iii)	be distributed to the Participants within ninety (90) days of the close of the Plan Year in which paid; or 

  

	 	(iv)	be used to repay principal and interest on the Acquisition Loan used to acquire Company Stock on which the dividends were paid. 

  
 In addition to the alternatives specified in the preceding paragraph regarding the treatment
of cash dividends paid with respect to shares of Company Stock credited to Participants’ Accounts, if authorized by the Committee for the Plan Year, a Participant may elect that cash dividends paid on Company Stock credited to the
Participant’s Account shall either be: 
  

	 	(i)	paid to the Plan, reinvested in Company Stock and credited to the Participant’s Account; 

  

	 	(ii)	distributed in cash to the Participant; or 

  

	 	(iii)	distributed to the Participant within ninety (90) days of the close of the Plan Year in which paid. 

  
 Dividends subject to an election under this paragraph (and any Company Stock acquired therewith pursuant to a Participant’s election)
shall at all times be fully vested. To the extent the 

  

 20 

 
Committee authorizes elections pursuant to this paragraph, the Committee shall establish policies and procedures relating to Participant elections and, if
applicable, the reinvestment of cash dividends in Company Stock, which are consistent with guidance issued under Section 404(k) of the Code. 
  

	(c)	Cash Dividends on Unallocated Shares. Dividends on Company Stock held in the Loan Suspense Account which are received by the Trustee in the form of cash shall be
applied as soon as practicable to payments of principal and interest under the Acquisition Loan incurred with the purchase of Company Stock. 

  

	(d)	Financed Shares. Financed Shares released from the Loan Suspense Account by reason of dividends paid with respect to such Company Stock shall be allocated under
Sections 5.03 and 5.04 of the Plan as follows: 

  

	 	(i)	First, Financed Shares with a fair market value at least equal to the dividends paid with respect to the Company Stock allocated to Participants’ Accounts shall be allocated
among and credited to the Accounts of such Participants, pro rata, according to the number of shares of Company Stock held in such accounts on the date such dividend is declared by the Company; and 

  

	 	(ii)	Then, any remaining Financed Shares released from the Loan Suspense Account by reason of dividends paid with respect to Company Stock held in the Loan Suspense Account shall be
allocated among and credited to the Accounts of all Participants, pro rata, according to each Participant’s Compensation. 

  

 21 

 SECTION 6 
 Vesting and Forfeitures 
  
 Section 6.01
Deferred Vesting in Accounts. 
  

	(a)	A Participant shall vest in his Accounts in accordance with the following schedule: 

  

				
	 Years of Service

	  	Vested
Percentage

	 
	 Two (2)
	  	25	%
	 Three (3)
	  	50	%
	 Four (4)
	  	75	%
	 Five (5)
	  	100	%

  

	(b)	For purposes of determining a Participant’s Years of Service under this Section 6.01, employment with the Bank or an Affiliate shall be deemed employment with the Employer. For
purposes of determining a Participant’s vested percentage in his Accounts, all Years of Service shall be included, beginning with the Employee’s initial service with the Employer. 

  
 Section 6.02 Immediate Vesting in Certain Situations. 
  

	(a)	Notwithstanding Section 6.01(a) of the Plan, a Participant shall become fully vested in his Accounts upon the earlier of: 

  

	 	(i)	termination of the Plan or upon the permanent and complete discontinuance of contributions by the Employer to the Plan; provided, however, that in the event of a partial termination
of the Plan, the interest of each Participant shall fully vest only with respect to that part of the Plan which is terminated; 

  

	 	(ii)	Termination of Service on or after the Participant’s Normal or Postponed Retirement Date; 

  

	 	(iii)	a Change in Control; or 

  

	 	(iv)	Termination of Service by reason of death or Disability. 

  

 22 

 Section 6.03 Treatment of Forfeitures. 
  

	(a)	If a Participant who is not fully vested in his Accounts terminates employment, that portion of his Accounts in which he is not vested shall be forfeited upon the earlier of:

  

	 	(i)	the date the Participant receives a distribution of his entire vested benefits under the Plan, or 

  

	 	(ii)	the date at which the Participant incurs five (5) consecutive One Year Breaks in Service. 

  

	(b)	If a Participant who has terminated employment and has received a distribution of his entire vested benefits under the Plan is subsequently reemployed by an Employer prior to
incurring five (5) consecutive One Year Breaks in Service, he shall have the portion of his Accounts which was previously forfeited restored to his Accounts, provided he repays to the Trustee within five (5) years of his subsequent employment date
an amount equal to the previous distribution. The amount restored to the Participant’s Account shall be credited to his Account as of the last day of the Plan Year in which the Participant repays the distributed amount to the Trustee and the
restored amount shall come from other Employees’ forfeitures and, if such forfeitures are insufficient, from a special contribution by the Employer for that year. If a Participant’s employment terminates prior to his Account having become
vested, such Participant shall be deemed to have received a distribution of his entire vested interest as of the Valuation Date next following his termination of employment. 

  

	(c)	If a Participant who has terminated employment but has not received a distribution of his entire vested benefits under the Plan is subsequently reemployed by an Employer subsequent
to incurring five (5) consecutive One Year Breaks in Service, any undistributed balance of his Accounts from his prior participation which was not forfeited shall be maintained as a fully vested subaccount within his Account.

  

	(d)	If a portion of a Participant’s Account is forfeited, assets other than Company Stock must be forfeited before any Company Stock may be forfeited. 

  

	(e)	Forfeitures shall be reallocated among the other Participants in the Plan. 

  
 Section 6.04 Accounting for Forfeitures. 
  
 A forfeiture shall be charged to the Participant’s Account as of the first day of the first Valuation Period in which the forfeiture becomes certain pursuant to
Section 6.03 of the Plan. Except as otherwise provided in Section 6.03 of the Plan, a forfeiture shall be added to the contributions of the terminated Participant’s Employer which are to be credited to other Participants pursuant to Section 5
as of the last day of the Plan Year in which the forfeiture becomes certain. 
  

 23 

 Section 6.05 Vesting Upon Reemployment. 
  
 If a Participant incurs a One Year Break in Service and again performs an Hour of Service, such Participant shall receive credit, for
purposes of Section 6.01 of the Plan, for his Years of Service prior to his One Year Break in Service. 
  

 24 

 SECTION 7 
 Distributions 
  
 Section 7.01
Distribution of Benefit Upon a Termination of Employment. 
  

	(a)	A Participant whose employment terminates for any reason shall receive the entire vested portion of his Accounts in a single payment on a date selected by the Committee; provided,
however, that such date shall be on or before the 60th day after the end of the Plan Year in which the Participant’s employment terminated. The benefits from that portion of the Participant’s Other Investments Account shall be calculated
on the basis of the most recent Valuation Date before the date of payment. Subject to the provisions of Section 7.05 of the Plan, if the Committee so provides, a Participant may elect that his benefits be distributed to him in the form of either
Company Stock, cash, or some combination thereof. 

  

	(b)	Notwithstanding paragraph (a) of this Section 7.01, if the balance credited to a Participant’s Accounts exceeds, at the time such benefit was distributable, $5,000, his
benefits shall not be paid before the latest of his 65th birthday or the tenth anniversary of the year in which he commenced participation in the Plan, unless he elects an early payment date in a written election filed with the Committee. Such an
election is not valid unless it is made after the Participant has received the required notice under Section 1.411(a)-11(c) of the Treasury Regulations that provides a general description of the material features of a lump sum distribution and the
Participant’s right to defer receipt of his benefits under the Plan. The notice shall be provided no less than 30 days and no more than 90 days before the first day on which all events have occurred which entitle the Participant to such
benefit. Written consent of the Participant to the distribution generally may not be made within 30 days of the date the Participant receives the notice and shall not be made more than 90 days from the date the Participant receives the notice.
However, a distribution may be made less than 30 days after the notice provided under Section 1.411(a)-11(c) of the Treasury Regulations is given, if: 

  

	 	(i)	the Committee clearly informs the Participant that he has a right to a period of at least 30 days after receiving the notice to consider the decision of whether or not to elect a
distribution (and if applicable, a particular distribution option), and 

  

	 	(ii)	the Participant, after receiving the notice, affirmatively elects a distribution. 

  
 A Participant may modify such an election at any time, provided any new benefit payment date is at least 30 days after a modified election
is delivered to the Committee. 
  

 25 

 Section 7.02 Minimum Distribution Requirements. 
  
 With respect to all Participants, other than those who are “5% owners” (as defined
in Section 416 of the Code), benefits shall be paid on the required beginning date which is no later than the April 1st of the later of: 
  

	 	(i)	the calendar year following the calendar year in which the Participant attains age 70-1/2, or 

  

	 	(ii)	the calendar year in which the Participant retires. 

  
 With respect to all Participants who are 5% owners within the meaning of Section 416 of the Code, such Participants’ benefits shall be paid no later than the April
1st of the calendar year following the calendar year in which the Participant attains age 70-1/2. 
  
 Section 7.03 Benefits on a Participant’s Death. 
  

	(a)	If a Participant dies before his benefits are paid pursuant to Section 7.01 of the Plan, the balance credited to his Accounts shall be paid to his Beneficiary in a single
distribution on or before the 60th day after the end of the Plan Year in which the Participant died. If the Participant has not named a Beneficiary or his named Beneficiary should not survive him, then the balance in his Accounts shall be paid to
his estate. The benefits from that portion of the Participant’s Other Investments Account shall be calculated on the basis of the most recent Valuation Date before the date of payment. 

  

	(b)	If a married Participant dies before his benefit payments begin, then, unless he has specifically elected otherwise, the Committee shall cause the balance in his Accounts to be paid
to his spouse, as Beneficiary. A married Participant may name an individual other than his spouse as Beneficiary provided that such election is accompanied by the spouse’s written consent which must: 

  

	 	(i)	acknowledge the effect of the election; 

  

	 	(ii)	explicitly provide either that the designated Beneficiary may not subsequently be changed by the Participant without the spouse’s further consent or that it may be changed
without such consent; and 

  

	 	(iii)	must be witnessed by the Committee, its representative, or a notary public. 

  
 This requirement shall not apply if the Participant establishes to the Committee’s satisfaction that the spouse may not be located. 
  

	(c)	 The Committee shall, from time to time, take whatever steps it deems appropriate to keep informed of each Participant’s marital status. Each Employer shall
provide the 

  

 26 

	 	 
Committee with the most reliable information in the Employer’s possession regarding its Participants’ marital status, and the Committee may, in its
discretion, require a notarized affidavit from any Participant as to his marital status. The Committee, the Plan, the Trustee, and the Employers shall be fully protected and discharged from any liability to the extent of any benefit payments made as
a result of the Committee’s good faith and reasonable reliance upon information obtained from a Participant as to the Participant’s marital status. 

  
 Section 7.04 Delay in Benefit Determination. 
  
 If the Committee is unable to determine the benefits payable to a Participant or Beneficiary on or before the latest date prescribed for
payment pursuant to this Section 7, the benefits shall in any event be paid within 60 days after they can first be determined. 
  
 Section 7.05 Options to Receive and Sell Company Stock. 
  

	(a)	Unless ownership of virtually all Company Stock is restricted to active Employees and qualified retirement plans for the benefit of Employees pursuant to the certificates of
incorporation or by-laws of the Employers issuing Company Stock, a terminated Participant or the Beneficiary of a deceased Participant may instruct the Committee to distribute the Participant’s entire vested interest in his Accounts in the form
of Company Stock. In that event, the Committee shall apply the Participant’s vested interest in his Other Investments Account to purchase sufficient Company Stock to make the required distribution. 

  

	(b)	Any Participant who receives Company Stock pursuant to this Section 7.05, and any person who has received Company Stock from the Plan or from such a Participant by reason of the
Participant’s death or incompetency, by reason of divorce or separation from the Participant, or by reason of a rollover distribution described in Section 402(c) of the Code, shall have the right to require the Employer which issued the Company
Stock to purchase the Company Stock for its current fair market value (hereinafter referred to as the “put right”). The put right shall be exercisable by written notice to the Committee during the first 60 days after the Company Stock is
distributed by the Plan, and, if not exercised in that period, during the first 60 days in the following Plan Year after the Committee has communicated to the Participant its determination as to the Company Stock’s current fair market value. If
the put right is exercised, the Trustee may, if so directed by the Committee in its sole discretion, assume the Employer’s rights and obligations with respect to purchasing the Company Stock. However, the put right shall not apply to the extent
that the Company Stock, at the time the put right would otherwise be exercisable, may be sold on an established market in accordance with federal and state securities laws and regulations. 

  

	(c)	 With respect to a put right, the Employer or the Trustee, as the case may be, may elect to pay for the Company Stock in equal periodic installments, not less
frequently than 

  

 27 

	 	 
annually, over a period not longer than five (5) years from the 30th day after the put right is exercised pursuant to paragraph (b) of this Section 7.05,
with adequate security and interest at a reasonable rate on the unpaid balance, all such terms to be set forth in a promissory note delivered to the seller with normal terms as to acceleration upon any uncured default. 

 

	(d)	Nothing contained in this Section 7.05 shall be deemed to obligate any Employer to register any Company Stock under any federal or state securities law or to create or maintain a
public market to facilitate the transfer or disposition of any Company Stock. The put right described in this Section 7.05 may only be exercised by a person described in paragraph (b) of this Section 7.05, and may not be transferred with any Company
Stock to any other person. As to all Company Stock purchased by the Plan in exchange for any Acquisition Loan, the put right must be nonterminable. The put right for Company Stock acquired through an Acquisition Loan shall continue with respect to
such Company Stock after the Acquisition Loan is repaid or the Plan ceases to be an employee stock ownership plan. Except as provided above, in accordance with the provisions of Sections 54.4975-7(b)(4) of the Treasury Regulations, no Company Stock
acquired with the proceeds of an Acquisition Loan may be subject to any put, call or other option or buy-sell or similar arrangement while held by, and when distributed from, the Plan, whether or not the Plan is then an employee stock ownership
plan. 

  
 Section 7.06 Restrictions on Disposition of Company
Stock. 
  
 Except in the case of Company Stock which is traded on an
established market, a Participant who receives Company Stock pursuant to this Section 7, and any person who has received Company Stock from the Plan or from such a Participant by reason of the Participant’s death or incompetency, divorce or
separation from the Participant, or a rollover distribution described in Section 402(c) of the Code, shall, prior to any sale or other transfer of the Company Stock to any other person, first offer the Company Stock to the issuing Employer and to
the Plan at its current fair market value. This restriction shall apply to any transfer, whether voluntary, involuntary, or by operation of law, and whether for consideration or gratuitous. Either the Employer or the Trustee may accept the offer
within 14 days after it is delivered. Any Company Stock distributed by the Plan shall bear a conspicuous legend describing the right of first refusal under this Section 7.06, as applicable, as well as any other restrictions upon the transfer of the
Company Stock imposed by federal and state securities laws and regulations. 
  
 Section 7.07 Direct Transfer of Eligible Plan Distributions. 
  

	(a)	 Notwithstanding any provision of the Plan to the contrary that would otherwise limit a distributee’s election under this Section, a distributee (as defined
below) may elect to have any portion of an eligible rollover distribution (as defined below) paid directly to an eligible retirement plan (as defined below) specified by the distributee in a direct rollover (as defined below). A
“distributee” includes a Participant or former Participant. In addition, the Participant’s or former Participant’s surviving spouse and the Participant’s 

  

 28 

	 	 
or former Participant’s spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Section 414(p) of
the Code, are distributees with regard to the interest of the spouse or former spouse. For purposes of this Section 7.07 a “direct rollover” is a payment by the Plan to the eligible retirement plan specified by the distributee.

  

	(b)	To effect such a direct transfer, the distributee must notify the Committee that a direct rollover is desired and provide to the Committee sufficient information regarding the
eligible retirement plan to which the payment is to be made. Such notice shall be made in such form and at such time as the Committee may prescribe. Upon receipt of such notice, the Committee shall direct the Trustee to make a trustee-to-trustee
transfer of the eligible rollover distribution to the eligible retirement plan so specified. 

  

	(c)	For purposes of this Section 7.07, an “eligible rollover distribution” shall have the meaning set forth in Section 402(c)(4) of the Code and any Treasury Regulations
promulgated thereunder. To the extent such meaning is not inconsistent with the above references, an eligible rollover distribution shall mean any distribution of all or any portion of the Participant’s Account, except that such term shall not
include any distribution which is one of a series of substantially equal periodic payments (not less frequently than annually) made (i) for the life (or life expectancy) of the Participant or the joint lives (or joint life expectancies) of the
Participant and a designated Beneficiary, or (ii) for a period of ten years or more. Further, the term “eligible rollover distribution” shall not include any distribution required to be made under Section 401(a)(9) of the Code or, the
portion of any distribution that is not includible in gross income (determined without regard to the exclusions for net unrealized appreciation with respect to Company Stock). To the extent applicable under the Plan, “eligible rollover
distributions” shall also not include any hardship distribution described in Section 401(k)(2)(B)(i)(IV) of the Code. 

  

	(d)	For purposes of this Section 7.07, an “eligible retirement plan” shall have the meaning set forth in Section 402(c)(8) of the Code and any Treasury Regulations promulgated
thereunder. To the extent such meaning is not consistent with the above references, an eligible retirement plan shall mean: (i) an individual retirement account described in Section 408(a) of the Code, (ii) an individual retirement annuity described
in Section 408(b) of the Code, (iii) an annuity or annuity plan described in Section 403(a) or Section 403(b) of the Code, (iv) a qualified trust described in Section 401(a) of the Code, or (v) a governmental plan under Section 457 of the Code that
accepts the distributee’s eligible rollover distribution. However, in the case of an eligible rollover distribution to a surviving spouse, an eligible retirement plan means an individual retirement account or individual retirement annuity.

  

 29 

 SECTION 8 
 Voting of Company Stock and Tender Offers 
  
 Section 8.01 Voting of Company Stock. 
  

	(a)	In General. The Trustee shall generally vote all shares of Company Stock held in the Trust in accordance with the provisions of this Section 8.01.

  

	(b)	Allocated Shares. Shares of Company Stock which have been allocated to Participants’ Accounts shall be voted by the Trustee in accordance with the
Participants’ written instructions. 

  

	(c)	Uninstructed and Unallocated Shares. Shares of Company Stock which have been allocated to Participants’ Accounts but for which no written instructions have been
received by the Trustee regarding voting shall be voted by the Trustee in a manner calculated to most accurately reflect the instructions the Trustee has received from Participants regarding voting shares of allocated Company Stock. Shares of
unallocated Company Stock shall also be voted by the Trustee in a manner calculated to most accurately reflect the instructions the Trustee has received from Participants regarding voting shares of allocated Company Stock. Notwithstanding the
preceding two sentences, all shares of Company Stock which have been allocated to Participants’ Accounts and for which the Trustee has not timely received written instructions regarding voting and all unallocated shares of Company Stock must be
voted by the Trustee in a manner determined by the Trustee to be solely in the best interests of the Participants and Beneficiaries. 

  

	(d)	Voting Prior to Allocation. In the event no shares of Company Stock have been allocated to Participants’ Accounts at the time Company Stock is to be voted, each
Participant shall be deemed to have one share of Company Stock allocated to his Accounts for the sole purpose of providing the Trustee with voting instructions. 

  

	(e)	Procedure and Confidentiality. Whenever such voting rights are to be exercised, the Employers, the Committee, and the Trustee shall see that all Participants and
Beneficiaries are provided with the same notices and other materials as are provided to other holders of the Company Stock, and are provided with adequate opportunity to deliver their instructions to the Trustee regarding the voting of Company Stock
allocated to their Accounts or deemed allocated to their Accounts for purposes of voting. The instructions of the Participants with respect to the voting of shares of Company Stock shall be confidential. 

  
 Section 8.02 Tender Offers. 
  
 In the event of a tender offer, Company Stock shall be tendered by the Trustee in the same
manner set forth in Section 8.01 of the Plan regarding the voting of Company Stock. 
  

 30 

 SECTION 9 
 The Committee and Plan Administration 
  
 Section 9.01 Identity of the Committee. 
  
 The Committee
shall consist of three or more individuals selected by the Bank. Any individual, including a director, trustee, shareholder, officer, or Employee of an Employer, shall be eligible to serve as a member of the Committee. The Bank shall have the power
to remove any individual serving on the Committee at any time without cause upon ten (10) days’ written notice to such individual and any individual may resign from the Committee at any time without reason upon ten (10) days’ written
notice to the Bank. The Bank shall notify the Trustee of any change in membership of the Committee. 
  
 Section 9.02 Authority of Committee. 
  

	(a)	The Committee shall be the “plan administrator” within the meaning of ERISA and shall have exclusive responsibility and authority to control and manage the operation and
administration of the Plan, including the interpretation and application of its provisions, except to the extent such responsibility and authority are otherwise specifically: 

  

	 	(i)	allocated to the Bank, the Employers, or the Trustee under the Plan and Trust Agreement; 

  

	 	(ii)	delegated in writing to other persons by the Bank, the Employers, the Committee, or the Trustee; or 

  

	 	(iii)	allocated to other parties by operation of law. 

  

	(b)	The Committee shall have exclusive responsibility regarding decisions concerning the payment of benefits under the Plan. 

  

	(c)	The Committee shall have full investment responsibility with respect to the Investment Fund except to the extent, if any, specifically provided for in the Trust Agreement.

  

	(d)	In the discharge of its duties, the Committee may employ accountants, actuaries, legal counsel, and other agents (who also may be employed by an Employer or the Trustee in the same
or some other capacity) and may pay such individuals reasonable compensation and expenses for their services rendered with respect to the operation or administration of the Plan, to the extent such payments are not otherwise prohibited by law.

  

 31 

 Section 9.03 Duties of Committee. 
  

	(a)	The Committee shall keep whatever records may be necessary in connection with the maintenance of the Plan and shall furnish to the Employers whatever reports may be required from
time to time by the Employers. The Committee shall furnish to the Trustee whatever information may be necessary to properly administer the Trust. The Committee shall see to the filing with the appropriate government agencies of all reports and
returns required with respect to the Plan under ERISA, the Code and other applicable laws and regulations. 

  

	(b)	The Committee shall have exclusive responsibility and authority with respect to the Plan’s holdings of Company Stock and shall direct the Trustee in all respects regarding the
purchase, retention, sale, exchange, and pledge of Company Stock and the creation and satisfaction of any Acquisition Loan to the extent such responsibilities are not set forth in the Trust Agreement. 

  

	(c)	The Committee shall at all times act consistently with the Bank’s long-term intention that the Plan, as an employee stock ownership plan, be invested primarily in Company
Stock. Subject to the direction of the Committee with respect to any Acquisition Loan pursuant to the provisions of Section 4.03 of the Plan, and subject to the provisions of Sections 7.05 and 11.04 of the Plan as to Participants’ rights under
certain circumstances to have their Accounts invested in Company Stock or in assets other than Company Stock, the Committee shall determine, in its sole discretion, the extent to which assets of the Trust shall be used to repay any Acquisition Loan,
to purchase Company Stock, or to invest in other assets selected by the Committee or an investment manager. No provision of the Plan relating to the allocation or vesting of any interests in Company Stock or investments other than Company Stock
shall restrict the Committee from changing any holdings of the Trust Fund, whether the changes involve an increase or a decrease in the Company Stock or other assets credited to Participants’ Accounts. In determining the proper extent of the
Trust Fund’s investment in Company Stock, the Committee shall be authorized to employ investment counsel, legal counsel, appraisers, and other agents and to pay their reasonable compensation and expenses to the extent such payments are not
prohibited by law. 

  

	(d)	 If the valuation of any Company Stock is not established by reported trading on a generally recognized public market, then the Committee shall have the exclusive
authority and responsibility to determine the value of the Company Stock for all purposes under the Plan. Such value shall be determined as of each Valuation Date and on any other date as of which the Trustee purchases or sells Company Stock in a
manner consistent with Section 4975 of the Code and the Treasury Regulations issued thereunder. The Committee shall use generally accepted methods of valuing stock of similar corporations for purposes of arm’s length business and investment
transactions, and in this connection the Committee shall obtain, and shall be protected in relying upon, the 

  

 32 

	 	 
valuation of Company Stock as determined by an independent appraiser (as defined in Section 401(a)(28)(c) of the Code). 

  
 Section 9.04 Compliance with ERISA and the Code. 
  
 The Committee shall perform all acts necessary to ensure the Plan’s compliance with
ERISA and the Code. Each individual member of the Committee shall discharge his duties in good faith and in accordance with the applicable requirements of ERISA and the Code. 
  
 Section 9.05 Action by Committee. 
  
 All actions of the Committee shall be governed by the affirmative vote of a majority of the total number of Committee members. The members of the Committee may meet
informally and may take any action without meeting as a group. 
  
 Section 9.06
Execution of Documents. 
  
 Any instrument to be executed by the
Committee may be signed by any member of the Committee. 
  
 Section 9.07
Adoption of Rules. 
  
 The Committee shall adopt such rules and
regulations of uniform applicability as it deems necessary or appropriate for the proper operation, administration and interpretation of the Plan. 
  
 Section 9.08 Responsibilities to Participants. 
  
 The Committee shall determine which Employees qualify to participate in the Plan. The Committee shall furnish to each Eligible Employee whatever summary plan
descriptions, summary annual reports, and other notices and information that may be required under ERISA. The Committee also shall determine when a Participant or his Beneficiary qualifies for the payment of benefits under the Plan. The Committee
shall furnish to each such Participant or Beneficiary whatever information is required under ERISA or the Code (or is otherwise appropriate) to enable the Participant or Beneficiary to make whatever elections may be available pursuant to Section 7,
and the Committee shall provide for the payment of benefits in the proper form and amount from the Trust. The Committee may decide in its sole discretion to permit modifications of elections and to defer or accelerate benefits to the extent
consistent with the terms of the Plan, applicable law, and the best interests of the individuals concerned. 
  
 Section 9.09 Alternative Payees in Event of Incapacity. 
  
 If the Committee finds at any time that an individual qualifying for benefits under this Plan is a minor or is incompetent, the Committee may direct the benefits to be paid, in the case of a minor, to his parents, his
legal guardian, a custodian for him under the Uniform Transfers to Minors 

  

 33 

 
Act, or the person having actual custody of him, or, in the case of an incompetent, to his spouse, his legal guardian, or the person having actual custody of
him. The Committee and the Trustee shall not be obligated to inquire as to the actual use of the funds by the person receiving them under this Section 9.09, and any such payment shall completely discharge the obligations of the Plan, the Trustee,
the Committee, and the Employers to the extent of the payment. 
  
 Section 9.10
Indemnification by Employers. 
  
 Except as separately agreed upon in
writing, the Committee, and any member or employee of the Committee, shall be indemnified and held harmless by the Employers, jointly and severally, to the fullest extent permitted by law, against any and all costs, damages, expenses, and
liabilities reasonably incurred by or imposed upon the Committee or such individual in connection with any claim made against the Committee or such individual, or in which the Committee or such individual may be involved by reason of being, or
having been, the Committee, or a member or employee of the Committee, to the extent such amounts are not paid by insurance. 
  
 Section 9.11 Abstention by Interested Member. 
  
 Any member of the Committee who is also a Participant in the Plan shall take no part in any determination specifically relating to his own participation or benefits under
the Plan, unless an abstention would render the Committee incapable of acting on the matter. 
  

 34 

 SECTION 10 
 Rules Governing Benefit Claims 
  
 Section 10.01 Claim for Benefits. 
  
 Any Participant or
Beneficiary who qualifies for the payment of benefits shall file a claim for benefits with the Committee on a form provided by the Committee. The claim, including any election of an alternative benefit form, shall be filed at least 30 days before
the date on which the benefits are to begin. If a Participant or Beneficiary fails to file a claim by the 30th day before the date on which benefits become payable, he shall be presumed to have filed a claim for payment for the Participant’s
benefits in the standard form prescribed by Section 7 of the Plan. 
  
 Section
10.02 Notification by Committee. 
  
 Within 90 days after receiving a
claim for benefits (or within 180 days, if special circumstances require an extension of time and written notice of the extension is given to the Participant or Beneficiary within 90 days after receiving the claim for benefits), the Committee shall
notify the Participant or Beneficiary whether the claim has been approved or denied. If the Committee denies a claim in any respect, the Committee shall set forth in a written notice to the Participant or Beneficiary: 
  

	(a)	each specific reason for the denial; 

  

	(b)	specific references to the pertinent Plan provisions on which the denial is based; 

  

	(c)	a description of any additional material or information which could be submitted by the Participant or Beneficiary to support his claim, with an explanation of the relevance of such
information; and 

  

	(d)	an explanation of the claims review procedures set forth in Section 10.03 of the Plan. 

  
 Section 10.03 Claims Review Procedure. 
  
 Within 60 days after a Participant or Beneficiary receives notice from the Committee that his claim for benefits has been denied in any
respect, he may file with the Committee a written notice of appeal setting forth his reasons for disputing the Committee’s determination. In connection with his appeal, the Participant or Beneficiary or his representative may inspect or
purchase copies of pertinent documents and records to the extent not inconsistent with other Participants’ and Beneficiaries’ rights of privacy. Within 60 days after receiving a notice of appeal from a prior determination (or within 120
days, if special circumstances require an extension of time and written notice of the extension is given to the Participant or Beneficiary and his representative within 60 days after receiving the notice of appeal), the Committee shall furnish to
the Participant or Beneficiary and his representative, if any, a written statement of the 

  

 35 

 
Committee’s final decision with respect to his claim, including the reasons for such decision and the particular Plan provisions upon which it is based.

  
 SECTION 11 
 The Trust 
  
 Section 11.01 Creation of Trust Fund. 
  
 All amounts received under the Plan from an Employer and investments shall be held in a Trust Fund pursuant to the terms of this Plan and the Trust Agreement. The benefits described in this Plan shall be payable only from the assets of the
Trust Fund. Neither the Bank, any other Employer, its board of directors or trustees, its stockholders, its officers, its employees, the Committee, nor the Trustee shall be liable for payment of any benefit under this Plan except from the Trust
Fund. 
  
 Section 11.02 Company Stock and Other Investments.

  
 The Trust Fund held by the Trustee shall be divided into Company Stock
and investments other than Company Stock. The Trustee shall have no investment responsibility for the portion of the Trust Fund consisting of Company Stock, but shall accept any Employer contributions made in the form of Company Stock, and shall
acquire, sell, exchange, distribute, and otherwise deal with and dispose of Company Stock in accordance with the instructions of the Committee. 
  
 Section 11.03 Acquisition of Company Stock. 
  
 From time to time the Committee may, in its sole discretion, direct the Trustee to acquire Company Stock from the issuing Employer or from shareholders, including
shareholders who are or have been Employees, Participants, or fiduciaries with respect to the Plan. The Trustee shall pay for such Company Stock no more than its fair market value, which shall be determined conclusively by the Committee pursuant to
Section 9.03(d) of the Plan. The Committee may direct the Trustee to finance the acquisition of Company Stock through an Acquisition Loan subject to the provisions of Section 4.03 of the Plan. 
  
 Section 11.04 Participants’ Option to Diversify. 
  
 The Committee shall establish a procedure under which each Participant may, during the first
five years of a certain six-year period, elect to have up to 25 percent of the value of his Accounts committed to alternative investment options within an “Investment Fund.” For the sixth year in this period, the Participant may elect to
have up to 50 percent of the value of his Accounts committed to other investments. The six-year period shall begin with the Plan Year following the first Plan Year in which the Participant has both reached age 55 and completed 10 years of
participation in the Plan; a Participant’s election to diversify his Accounts must be made within the 90-day period immediately following the last day of each of the six Plan Years. The Committee shall see that the Investment Fund includes a
sufficient number of investment options 

  

 36 

 
to comply with Section 401(a)(28)(B) of the Code. The Committee may, in its discretion, permit a transfer of a portion of the Participant’s Accounts to
the Savings Institute Bank and Trust Company Profit Sharing and 401(k) Plan in order to satisfy this Section 11.04, provided such investments comply with Section 401(a)(28)(B) of the Code and such transfer is not otherwise prohibited under the Code
or ERISA. The Trustee shall comply with any investment directions received from Participants in accordance with the procedures adopted from time to time by the Committee under this Section 11.04. 
  
 SECTION 12 
 Adoption, Amendment and Termination 
  
 Section 12.01 Adoption of Plan by Other Employers. 
  
 With the consent of the Bank, any entity may become a participating Employer under the Plan by: 
  

	(a)	taking such action as shall be necessary to adopt the Plan; 

  

	(b)	becoming a party to the Trust Agreement establishing the Trust Fund; and 

  

	(c)	executing and delivering such instruments and taking such other action as may be necessary or desirable to put the Plan into effect with respect to the entity’s Employees.

  
 Section 12.02 Adoption of Plan by Successor.

  
 In the event that any Employer shall be reorganized by way of merger,
consolidation, transfer of assets or otherwise, so that an entity other than an Employer shall succeed to all or substantially all of the Employer’s business, the successor entity may be substituted for the Employer under the Plan by adopting
the Plan and becoming a party to the Trust Agreement. Contributions by the Employer shall be automatically suspended from the effective date of any such reorganization until the date upon which the substitution of the successor entity for the
Employer under the Plan becomes effective. If, within 90 days following the effective date of any such reorganization, the successor entity shall not have elected to become a party to the Plan, or if the Employer shall adopt a plan of complete
liquidation other than in connection with a reorganization, the Plan shall be automatically terminated with respect to Employees of the Employer as of the close of business on the 90th day following the effective date of the reorganization, or as of
the close of business on the date of adoption of a plan of complete liquidation, as the case may be. 
  
 Section 12.03 Plan Adoption Subject to Qualification. 
  
 Notwithstanding any other provision of the Plan, the adoption of the Plan and the execution of the Trust Agreement are conditioned upon their being determined initially by the Internal Revenue Service to meet the
qualification requirements of Section 401(a) of the Code, so that the Employers may deduct currently for federal income tax purposes their contributions to the Trust 

  

 37 

 
and so that the Participants may exclude the contributions from their gross income and recognize income only when they receive benefits. In the event that
this Plan is held by the Internal Revenue Service not to qualify initially under Section 401(a) of the Code, the Plan may be amended retroactively to the earliest date permitted by the Code and the applicable Treasury Regulations in order to secure
qualification under Section 401(a) of the Code. If this Plan is held by the Internal Revenue Service not to qualify initially under Section 401(a) of the Code either as originally adopted or as amended, each Employer’s contributions to the
Trust under this Plan (including any earnings thereon) shall be returned to it and this Plan shall be terminated. In the event that this Plan is amended after its initial qualification, and the Plan, as amended, is held by the Internal Revenue
Service not to qualify under Section 401(a) of the Code, the amendment may be modified retroactively to the earliest date permitted by the Code and the applicable Treasury Regulations in order to secure approval of the amendment under Section 401(a)
of the Code. 
  
 Section 12.04 Right to Amend or Terminate.

  

	(a)	The Bank intends to continue this Plan as a permanent program. However, each participating Employer separately reserves the right to suspend, supersede, or terminate the Plan at any
time and for any reason, as it applies to that Employer’s Employees, and the Bank reserves the right to amend, suspend, supersede, merge, consolidate, or terminate the Plan at any time and for any reason, as it applies to the Employees of all
Employers. 

  

	(b)	No amendment, suspension, supersession, merger, consolidation, or termination of the Plan shall reduce any Participant’s or Beneficiary’s proportionate interest in the
Trust Fund, or shall divert any portion of the Trust Fund to purposes other than the exclusive benefit of the Participants and their Beneficiaries prior to the satisfaction of all liabilities under the Plan. Except as is required for purposes of
compliance with the Code or ERISA, neither the provisions of Section 5.04 relating to the crediting of contributions, forfeitures and shares of Company Stock released from the Loan Suspense Account, nor any other provision of the Plan relating to
the allocation of benefits to Participants, may be amended more frequently than once every six months. Moreover, there shall not be any transfer of assets to a successor plan or merger or consolidation with another plan unless, in the event of the
termination of the successor plan or the surviving plan immediately following such transfer, merger, or consolidation, each participant or beneficiary would be entitled to a benefit equal to or greater than the benefit he would have been entitled to
if the plan in which he was previously a participant or beneficiary had terminated immediately prior to such transfer, merger, or consolidation. Following a termination of this Plan by the Bank, the Trustee shall continue to administer the Trust and
pay benefits in accordance with the Plan and the Committee’s instructions. 

  

	(c)	In the event of a Change in Control, the Plan shall be terminated and allocations made to Participants in accordance with the provisions of Section 5.08 of the Plan.

  

 38 

 SECTION 13 
 General Provisions 
  
 Section 13.01
Nonassignability of Benefits. 
  
 The interests of Participants and
other persons entitled to benefits under the Plan shall not be subject to the claims of their creditors and may not be voluntarily or involuntarily assigned, alienated, pledged, encumbered, sold, or transferred. The prohibitions set forth in this
Section 13.01 shall also apply to any judgment, decree, or order (including approval of a property or settlement agreement) which relates to the provision of child support, alimony, or property rights to a present or former spouse, child, or other
dependent of a Participant pursuant to a domestic relations order, unless such judgment, decree or order is determined to be a “qualified domestic relations order” as defined in Section 414(p) of the Code. 
  
 Section 13.02 Limit of Employer Liability. 
  
 The liability of the Employers with respect to Participants and other persons entitled to
benefits under the Plan shall be limited to making contributions to the Trust from time to time, in accordance with Section 4 of the Plan. 
  
 Section 13.03 Plan Expenses. 
  
 All expenses incurred by the Committee or the Trustee in connection with administering the Plan and Trust shall be paid by the Trustee from the Trust Fund to the extent
the expenses have not been paid or assumed by the Employer. 
  
 Section 13.04
Nondiversion of Assets. 
  
 Except as provided in Sections 5.05 and
12.03 of the Plan, under no circumstances shall any portion of the Trust Fund be diverted to or used for any purpose other than the exclusive benefit of Participants and their Beneficiaries prior to the satisfaction of all liabilities under the
Plan. 
  
 Section 13.05 Separability of Provisions. 
  
 If any provision of the Plan is held to be invalid or unenforceable, the other provisions of
the Plan shall not be affected but shall be applied as if the invalid or unenforceable provision had not been included in the Plan. 
  
 Section 13.06 Service of Process. 
  
 The agent for the service of process upon the Plan shall be the Chairman of the Board of the Bank and the Trustee, or such other person as may be designated from time to
time by the Bank. 
  

 39 

 Section 13.07 Governing Law. 
  
 The Plan is established under, and its validity, construction and effect shall be governed by the laws of the State of Connecticut to the
extent those laws are not preempted by federal law, including the provisions of ERISA. 
  
 Section 13.08 Special Rules for Persons Subject to Section 16(b) Requirements. 
  
 Notwithstanding anything herein to the contrary, any former Participant who is subject to the provisions of Section 16(b) of the Securities Exchange Act of 1934, who becomes eligible to again participate in the Plan,
may not become a Participant prior to the date that is six months from the date such former Participant terminated participation in the Plan. In addition, any person subject to the provisions of Section 16(b) of the Securities Exchange Act of 1934
Act receiving a distribution of Company Stock from the Plan must hold such Company Stock for a period of six months, commencing with the date of distribution. However, this restriction will not apply to Company Stock distributions made in connection
with death, retirement, Disability or termination of employment, or made pursuant to the terms of a qualified domestic relations order. 
  
 Section 13.09 Military Service. 
  
 Notwithstanding any other provision of this Plan to the contrary, contributions, benefits and Service credit with respect to qualified military service will be provided
in accordance with Section 414(u) of the Code. 
  

 40 

 SECTION 14 
 Top-Heavy Provisions 
  
 Section 14.01
Top-Heavy Provisions. 
  
 If, as of the last day of the first Plan
Year, or thereafter, if as of the day next preceding the beginning of any Plan Year (the “Determination Date”), the Plan is a “top-heavy plan” (determined in accordance with the provisions of Section 416(g) of the Code), that is,
the aggregate present value of the accrued benefits and account balances of all “Key Employees” (within the meaning of Section 416(i) of the Code, and for this purpose using the definition of Compensation, as modified under Section 5.05(b)
of the Plan) and their Beneficiaries, exceeds sixty percent (60%) of the aggregate present value of the accrued benefits and account balances of all employees and their beneficiaries, the provision specified in this Section 14 will automatically
become effective as of the first day of the Plan Year. This calculation shall be made in accordance with Section 416(g) of the Code, taking into consideration plans which are considered part of the Aggregation Group. The term “Aggregation
Group” shall include each plan of the Bank or any of its Affiliates that includes a Key Employee and each plan of the Bank or any of its Affiliates that allows the Plan to meet the requirements of Section 401(a)(4) of the Code or Section 410 of
the Code and may include any other plan of the Bank or any of its Affiliates, if the Aggregation Group would continue to meet the requirements of Sections 401(a)(4) and 410 of the Code. 
  
 Section 14.02 Plan Modifications Upon Becoming Top-Heavy. 
  

	(a)	Minimum Accruals. Section 5.04 of the Plan will be modified to provide that the aggregate amount of Employer contributions allocated in each Plan Year to the Accounts
of each Participant who is a non-Key Employee (as defined under Section 416(i)(1) of the Code), and who is employed by an Employer as of the last day of the Plan Year, may not be less than the lesser of: 

  

	 	(i)	three percent of his Compensation for the Plan Year; and 

  

	 	(ii)	a percentage of his Compensation equal to the largest percentage obtained by dividing the sum of the amount credited to the Accounts of any Key Employee by that Key Employee’s
Compensation. 

  
 If a Participant’s vested interest in his
Accounts is to be determined in a year during which the Plan is a top-heavy plan, then it shall be based on the following schedule: 
  

			
	 Years of Service

	 	 Vested Percentage

	 Fewer than 3 years
	 	    0%
	 3 or more years
	 	100%

  

 41 

 The preceding provisions will remain in effect for the period in which the Plan is top-heavy. If, for any particular year
thereafter, the Plan is no longer top-heavy, the provisions contained in this Section 14.02 shall cease to apply, except that any previously vested portion of any Account balance shall remain nonforfeitable. 
  

 42 

 TRUST AGREEMENT 
  
 BETWEEN 
  
 SAVINGS INSTITUTE BANK AND TRUST COMPANY 
  
 AND 
  

  
 FOR THE 
  
 SAVINGS INSTITUTE BANK AND TRUST COMPANY 
 EMPLOYEE STOCK OWNERSHIP PLAN TRUST 
  

 CONTENTS 
  

					
	 	  	 	  	Page No.

	 Section 1
	  	Creation of Trust	  	1
			
	 Section 2
	  	Investment of Trust Fund and Administrative Powers of the Trustee	  	2
			
	 Section 3
	  	Compensation and Indemnification of Trustee and Payment of Expenses and Taxes	  	7
			
	 Section 4
	  	Records and Valuation	  	9
			
	 Section 5
	  	Instructions from Committee	  	10
			
	 Section 6
	  	Change of Trustee	  	11
			
	 Section 7
	  	Miscellaneous	  	11

  

 -i- 

 This TRUST AGREEMENT dated
                    , 2004 BETWEEN, Savings Institute Bank and Trust Company with its administrative office at 803 Main Street,
Willimantic, CT (hereinafter called the “Company”), and                      with its administrative office at
                     (hereinafter called the “Trustee”). 
  
 W I T N E S S E T H T H A T: 
  
 WHEREAS, the Company has approved and adopted an employee stock ownership plan for the benefit of its employees, the Savings Institute Bank and Trust
Company Employee Stock Ownership Plan (hereinafter called the “Plan”); and 
  
 WHEREAS, the Company has authorized the execution of this Trust Agreement and has appointed
                     as Trustee of the Trust Fund created pursuant to the Plan; and 
  
 WHEREAS,
                     has agreed to act as Trustee and to hold and administer the assets of the Plan in accordance with the terms of this Trust
Agreement. 
  
 NOW, THEREFORE, the Company and the Trustee agree
as follows: 
  
 Section 1. Creation of Trust 
  
 1.1 Trustee
                                        
shall serve as Trustee of the Trust Fund created in accordance with and in furtherance of the Plan, and shall serve as Trustee until their removal or resignation in accordance with Section 6. 
  
 1.2 Trust Fund The Trustee hereby agrees to accept contributions from
the Employer as defined in the Plan and amounts transferred from other qualified retirement plans from time to time in accordance with the terms of the Plan. All such property and contributions, together with income thereon and increments thereto,
shall constitute the “Trust Fund” to be held in accordance with the terms of the Trust Agreement. 
  
 1.3 Incorporation of Plan An instrument entitled “Savings Institute Bank and Trust Company Employee Stock Ownership Plan” is incorporated
herein by reference, and this Trust Agreement shall be interpreted consistently with that Plan. All words and phrases defined in that Plan shall have the same meaning when used in this Trust Agreement. 
  
 1.4 Name The name of this trust shall be “Savings Institute Bank
and Trust Company Employee Stock Ownership Plan Trust.” 
  
 1.5 Nondiversion of Assets In no event shall any part of the corpus or income of the Trust Fund be used for, or diverted to, purposes other than for the exclusive benefit of the Participants and their Beneficiaries prior to the
satisfaction of all liabilities under the Plan, except 

  

 1 

 
to the extent that assets may be returned to the Employer in accordance with the Plan where the Plan fails to qualify initially under Section 401(a) of the
Internal Revenue Code (the “Code”), or where they are attributable to contributions made by mistake of fact or in excess of the deductibility allowed under the Code. 
  
 Section 2. Investment of Trust Fund and Administrative Powers of the Trustee 
  
 2.1 Company Stock and Other Investments The basic investment policy of
the Plan shall be to invest primarily in Company Stock of the Employer for the exclusive benefit of the Participants and their Beneficiaries. The Committee shall have full and complete investment authority and responsibility with respect to the
purchase, retention, sale, exchange, and pledge of Company Stock and the payment of Stock Obligations, and the Trustee shall not deal in any way with Company Stock except in accordance with their obligations pursuant to this Trust Agreement and the
written instructions of the Committee. The Trustee shall invest, or keep invested, all or a portion of the Trust Fund in Company Stock, and shall pay Stock Obligations out of assets of the Trust Fund, as instructed from time to time by the
Committee. The Trustee shall invest any balance of the Trust Fund (the “Investment Fund”) in such other property as the Committee, in its sole discretion, shall deem advisable, subject to any delegation of such investment responsibility
pursuant to Section 2.2. Nothing contained herein shall provide investment discretion authority or any like kind responsibility in regard to the assets of the Trust Fund. 
  
 In connection with instructions to acquire Company Stock, the Trustee may purchase newly issued or outstanding Company Stock
from the Employer or any other holders of Company Stock, including Participants, Beneficiaries, and Plan fiduciaries. All purchases and sales of Stock shall be made by the Trustee at fair market value as determined by the Committee in good faith and
in accordance with any applicable requirements under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). Such purchases may be made with assets of the Trust Fund, with funds borrowed for this purpose (with or without
guarantees of repayment to the lender by the Employer), or by any combination of the foregoing. 
  
 Notwithstanding any other provision of this Trust Agreement or the Plan, neither the Committee nor the Trustee shall make any purchase, sale, exchange,
investment, pledge, valuation, or loan, or take any other action involving those assets for which they are responsible which (i) is inconsistent with the policy of the Plan and Trust, (ii) is inconsistent with the prudence and diversification
requirements set forth in Sections 404(a)(1)(B) and (C) of ERISA (to the extent such requirements apply to an employee stock ownership plan and trust), (iii) is prohibited by Section 406 or 407 of ERISA, or (iv) would impair the qualification of the
Plan or the exemption of the Trust under Sections 401 and 501, respectively, of the Code. 
  
 2.2 Delegation of Investment Responsibility The Committee may, by written notice and in accordance with the Plan, direct the Trustee to segregate any portion or all of the Investment Fund into one or more
separate accounts for each of which full investment responsibility will be 

  

 2 

 
delegated to an investment manager appointed in such notice pursuant to Section 402(c)(3) of ERISA (hereinafter a “Manager”). For any separate
account where the Trustee is to maintain custody of the assets, the Trustee and the Manager shall agree upon procedures for the transmittal of investment instructions from the Manager to the Trustee, and the Trustee may provide the Manager with such
documents as may be necessary to authorize the Manager to effect transactions directly on behalf of the segregated account. 
  
 Further, the Committee may, by written notice and in accordance with the Plan, direct the Trustee to segregate any portion or all of the Investment Fund
into one or more separate accounts for each of which full investment responsibility will be delegated to an insurance company through one or more group annuity contracts, deposit administration contracts, or similar contracts, which may provide for
investments in any commingled separate accounts established under such contracts. An insurance company shall be a Manager with respect to any amounts held under such a contract except to the extent the insurer’s assets are not deemed assets of
the Plan and Trust Fund pursuant to Section 401(b)(2) of ERISA. The allocation of amounts held under such a contract among the insurer’s general account and one or more individual or commingled separate accounts shall be determined by the
Committee except as otherwise agreed by the Committee and the insurer. 
  
 Any Manager shall have all of the powers given to the Trustee pursuant to Section 2.3 with respect to the portion of the Trust Fund committed to its investment discretion and control. The Trustee shall be responsible for the safekeeping of
any assets which remain in their custody, but in no event shall the Trustee be under any duty to question or make any inquiry or suggestion regarding the action or inaction of a Manager or an insurer or the advisability of acquiring, retaining, or
disposing of any asset of a segregated account. The Employer shall indemnify and hold the Trustee harmless from any and all costs, damages, expenses, and liabilities which the Trustee may incur by reason of any action taken or omitted to be taken by
the Trustee upon directions from the Committee, a Manager, or an insurer pursuant to this Section 2.2. 
  
 2.3 Trustee Powers In addition to and not by way of limitation upon the fiduciary powers granted to it by law, the Trustee shall have the following
specific powers, subject to the limitations set forth in Section 2.1: 
  
 2.3-1 to receive, hold, manage, invest and reinvest the money or other property which constitutes the Trust Fund, without distinction between principal and income; 
  
 2.3-2 to hold funds uninvested temporarily, provided it is a period of time that is not unreasonable, without liability for
interest thereon, and to deposit funds in one or more savings or similar accounts with any banks and savings and loan associations which are insured by an instrumentality of the federal government, including the Trustee if it is such an institution;

  
 2.3-3 at the direction of the Committee, to invest or reinvest
the whole or any portion of the money or other property which constitutes the Trust Fund in such common or preferred 

  

 3 

 
stocks, investment trust shares, mutual funds, commingled trust funds, partnership interests, bonds, notes, or other evidences of indebtedness, and real and
personal property as the Trustee in their absolute judgment and discretion may deem to be for the best interests of the Trust Fund, regardless of nondiversification to the extent that such nondiversification is clearly prudent, and regardless of
whether any such investment or property is authorized by law regarding the investment of trust funds, of a wasting asset nature, temporarily nonincome producing, or within or without the United States; 
  
 2.3-4 to invest in common and preferred stocks, bonds, notes, or other
obligations of any corporation or business enterprise in which an Employer or its owners may own an interest; 
  
 2.3-5 at the direction of the Committee, to exchange any investment or property, real or personal, for other investments or properties at such time and
upon such terms as the Trustee shall deem proper; 
  
 2.3-6 at the
direction of the Committee, to sell, transfer, convey or otherwise dispose of any investment or property, real or personal, for cash or on credit, in such manner and upon such terms and conditions as the Trustee shall deem advisable, and no person
dealing with the Trustee shall be under any duty to inquire as to the validity, expediency, or propriety of any such sale or as to the application of the purchase money paid to the Trustee; 
  
 2.3-7 to hold any investment or property in the name of the Trustee, with or
without the designation of any fiduciary capacity, or in the name of a nominee, or unregistered, or in such other form that title may pass by delivery; provided, however, that the Trustee’s records always show that such investment or property
belongs to the Trust Fund and the Trustee shall not be relieved hereby of its responsibility to maintain safe custody of such investment or property; 
  
 2.3-8 to organize one or more corporations to hold, manage, or liquidate any property, including real estate, owned or acquired by the Trust Fund if in
the sole discretion of the Trustee the organization of such corporation or corporations is for the best interests of the Trust and the Plan Participants and Beneficiaries; 
  
 2.3-9 to extend the time for payment of, to modify, to renew, or to release security from any mortgage, note or other
evidence of indebtedness, or to take advantage of or waive any default; to foreclose mortgages and bid on property under foreclosure or to take title to property by conveyance in lieu of foreclosure, either with or without the payment of additional
consideration; 
  
 2.3-10 to vote in person or by proxy all stocks
and other securities having voting privileges; to exercise or refrain from exercising any option or privilege with respect to stocks and other securities, including any right or privilege to subscribe for or otherwise to acquire stocks and other
securities; or to sell any such right or privilege; to assent to and join in any plan of refinance, merger, consolidation, reorganization or liquidation of any corporation or other 

  

 4 

 
enterprise in which this Trust may have an interest, to deposit stocks and other securities with any committee formed to effectuate the same, to pay any
expense incidental thereto, to exchange stocks and other securities for those which may be issued pursuant to any such plan, and to retain as an investment the stocks and other securities received by the Trustee; and to deposit any investment in a
voting trust; notwithstanding the preceding, Participants and Beneficiaries shall be entitled to direct the manner in which stock allocated to their respective accounts are to be voted on all matters. All stock which has been allocated to
Participants’ Accounts for which the Trustee has received no written direction and all unallocated Employer securities will be voted by the Trustee in direct proportion to any Participant’s directions received and solely in the interest of
the Participants and Beneficiaries. Whenever such voting rights are to be exercised, the Employer, the Committee and the Trustee shall see that all Participants and Beneficiaries are provided with adequate opportunity to deliver their instructions
to the Trustee regarding voting of stock allocated to their accounts. The instructions of the Participants with respect to the voting of allocated shares hereunder shall be confidential; 
  
 2.3-11 to abandon any property, real or personal, which the Trustee shall consider to be worthless or not of sufficient
value to warrant its keeping or protecting; to abstain from the payment of taxes, water rents, assessments, repairs, maintenance, and upkeep of any such property; to permit any such property to be lost by tax sale or other proceedings, and to convey
any such property for a nominal consideration or without consideration; 
  
 2.3-12 to borrow money from the Employer or from others (including the Trustee), and to enter into installment contracts, for the purchase of Stock upon such terms and conditions and at such reasonable rates of interest as the Committee may
deem to be advisable, to issue its promissory notes as Trustee to evidence such debt, to secure the payment of such notes by pledging any property of the Trust Fund, and to authorize the holders of any such notes to pledge them to secure obligations
of the holders and in connection therewith to repledge any assets of the Trust as security therefor; provided that, with respect to any extension of credit to the Trust involving, as a lender or guarantor, the Employer or other “disqualified
person” within the meaning of Section 4975(e)(2) of the Code — 
  

	 	(a)	each loan or installment contract is primarily for the benefit of Participants and Beneficiaries of the Plan; 

  

	 	(b)	any interest on a loan or installment contract does not exceed a reasonable rate; 

  

	 	(c)	the proceeds of any loan shall be used only to acquire Stock, to repay the loan, or to repay a previous loan meeting these conditions, and the subject of any installment contract
shall be only the Trust’s purchase of Stock; 

  

	 	(d)	any collateral pledged to a creditor by the Trustee shall consist only of qualifying employer securities as that term is defined under Section 4975(e)(8) of the Code and the
creditor shall have no recourse against the Trust Fund except with respect to the collateral (although the creditor may have recourse against an Employer as guarantor); 

  

 5 

	 	(e)	payments with respect to a loan or installment contract shall be made only from those amounts contributed by the Employer to the Trust Fund, from amounts earned on such
contributions, and from cash dividends received on unallocated Stock held by the Trust as collateral for such an obligation; and 

  

	 	(f)	upon the payment of any portion of balance due on a loan or upon any installment payment, a proportionate part of any qualified employer securities originally pledged as collateral
for such indebtedness shall be released from encumbrance in accordance with Section 4.2 of the Plan and the Committee shall at least annually advise the Trustee of the number of shares of Stock so released and the proper allocation of such shares
under the terms of the Plan; 

  
 2.3-13 to manage
and operate any real property which shall at any time constitute an asset of the Trust Fund; to make repairs, alterations, and improvements thereto; to insure such property against loss by fire or other casualty; to lease or grant options for the
sale of such property, which lease or option may be for a period of time which may extend beyond the life of this Trust; and to take any other action or enter into any other contract respecting such property which is consistent with the best
interests of the Trust; 
  
 2.3-14 to pay any and all reasonable
and normal expenses incurred in connection with the exercise of any power, right, authority or discretion granted herein, and, upon prior notice to the Company, to employ and compensate agents, investment counsel, custodians, actuaries, attorneys,
and accountants in such connection; 
  
 2.3-15 to employ and
consult with any legal counsel, who also may be counsel to an Employer or the Administrator, with respect to the meaning or construction of this Trust Agreement, the extent of the Trustee’s obligations and duties hereunder, and whether the
Trustee should take or decline to take a particular action hereunder, and the Trustee shall be fully protected with respect to any action taken or omitted by such Trustee in good faith pursuant to such advice; 
  
 2.3-16 to defend any action or proceeding instituted against the Trust Fund,
to institute any action on behalf of the Trust Fund, and to compromise or submit to arbitration any dispute concerning the Trust Fund; 
  
 2.3-17 to make, execute, acknowledge and deliver any and all documents of transfer and conveyance and any and all other instruments that may be necessary
or appropriate to carry out the powers herein granted; 
  
 2.3-18
to commingle the Trust Fund created pursuant hereto, in whole or in part, in a single trust with all or any portion of any other trust fund, assigning an undivided interest to each such commingled trust fund, provided that such commingled trust is
itself exempt from taxation pursuant to Section 501(a) of the Code, or its successor Section; and provided further that the 

  

 6 

 
trust agreement governing such commingled trust shall be deemed incorporated by reference in the Plan; 
  
 2.3-19 where two or more trusts governed by this Trust Agreement have an
undivided interest in any property, to credit the income from such property to such trusts in proportion to their undivided interests, and when non pro rata distributions of property or money are made from such trusts, to make appropriate
adjustments to the undivided fractional interests of such trusts; 
  
 2.3-20 to invest all or any portion of the Trust Fund in one or more group annuity contracts, deposit administration contracts, and other such contracts with insurance companies, including any commingled separate accounts established under
such contracts; 
  
 2.3-21 generally, with respect to all cash,
stocks and other securities, and property, both real and personal, received or held in the Trust Fund by the Trustee, to exercise all the same rights and powers as are or may be lawfully exercised by persons owning cash, or stocks and other
securities, or such property in their own right; and to do all other acts, whether or not expressly authorized, which it may deem necessary or proper for the protection of the Trust Fund; and 
  
 2.3-22 whenever more than two persons shall qualify to act as co-Trustee, to
exercise and perform every power (including discretionary powers), authority or duty by the concurrence of a majority of them the same effect as if all had joined therein, except that the unanimous vote of such persons shall be necessary to
determine the number (one or more) and identity of persons who may sign checks, make withdrawals from financial institutions, have access to safe deposit boxes, or direct the sale of trust assets and the disposition of the proceeds. 
  
 2.4 Brokerage If permitted in writing by the Committee the Trustee
shall have the power and authority, to be exercised in their sole discretion at any time and from time to time, to issue and place orders for the purchase or sale of securities with qualified brokers and dealers. Such orders may be placed with such
qualified brokers and/or dealers who also provide investment information or other research or statistical services to the Trustee in its capacity as a fiduciary or investment manager for other clients. 
  
 Section 3. Compensation and Indemnification of Trustee and Payment of
Expenses and Taxes 
  
 3.1 Fees and Expenses from Fund
In consideration for rendering services pursuant to this Trust Agreement the Trustee shall be paid fees in accordance with the Trustee’s fee schedule as in effect from time to time. Fee changes resulting in fee increases shall be effective upon
not less than 30 days’ notice to the Company. In addition, the Trustee shall be reimbursed for any reasonable expenses, including reasonable attorneys’ fees, incurred in the administration of the Trust created hereby. Fees and expenses
shall be allocated to Participants’ Accounts, if any, 

  

 7 

 
unless paid directly by the Employer. All compensation and expenses of the Trustee shall be paid out of the Trust Fund or by the Employer as specified in the
Plan. If and to the extent the Trust Fund shall not be sufficient, such compensation and expenses shall be paid by the Employer upon demand. If payment is due but not paid by the Employer, such amount shall be paid from the assets of the Trust Fund.
The Trustee is hereby empowered to withdraw all such compensation and expenses which are 60 days past due from the Trust Fund, and, in furtherance thereof, liquidate any assets of the Trust Fund, without further authorization or direction from or by
any person. Notwithstanding the foregoing, in the event any officer or director of Savings Institute Bank and Trust Company serves as trustee of the Plan, no compensation shall be paid to the officer or director in exchange for his or her services
as trustee. 
  
 3.2 Indemnification Notwithstanding any
other provision of this Trust Agreement, any individual designated as a trustee hereunder shall be indemnified and held harmless by the Employer to the fullest extent permitted by law against any and all costs, damages, expenses and liabilities
including, but not limited to attorneys’ fees and disbursements reasonably incurred by or imposed upon such individual in connection with any claim made against him or in which he may be involved by reason of his being, or having been, a
trustee hereunder, to the extent such amounts are not satisfied by insurance maintained by the Employer, except liability which is adjudicated to have resulted from the gross negligence or willful misconduct of the Trustee by reason of any action so
taken. Further, any corporate trustee and its officers, directors and agents may be indemnified and held harmless by the Employer to the fullest extent permitted by law against any and all costs, damages, expenses and liabilities including, but not
limited to, attorneys’ fees and disbursements reasonably incurred by or imposed upon such persons and/or corporation in connection with any claim made against it or them or in which such persons and/or corporation may be involved by reason of
its being, or having been, a trustee hereunder as may be agreed between the Employer and such trustee, except liability which is adjudicated to have resulted from the gross negligence or willful misconduct of the Trustee by reason of any action so
taken. 
  
 3.3 Expenses All expenses of administering the
Trust and the Plan, whether incurred by the Trustee or the Committee, shall be paid by the Trustee from the Trust Fund to the extent such expenses shall not have been assumed by the Employer. 
  
 3.4 Taxes All taxes that may be levied or assessed upon or in respect
of the Trust Fund shall be paid from the Trust Fund. The Trustee shall notify the Committee of any proposed or final assessments of taxes and may assume that any such taxes are lawfully levied or assessed unless the Committee advises it in writing
to the contrary within fifteen days after receiving the above notice from the Trustee. In such case, the Trustee, if requested by the Committee in writing, shall contest the validity of such taxes in any manner deemed appropriate by the Committee;
the Employer may itself contest the validity of any such taxes, in which case the Committee shall so notify the Trustee and the Trustee shall have no responsibility or liability respecting such contest. If either party to this Agreement contests any
such proposed levy or 

  

 8 

 
assessments, the other party shall provide such information and cooperation as the party conducting the contest shall reasonably request. 
  
 Section 4. Records and Valuation 
  
 4.1 Records The Trustee, and any investment manager appointed pursuant
to Section 2.2, shall maintain accurate and detailed records and accounts of all investments, receipts, disbursements and other transactions made by it with respect to the Trust Fund, and all accounts, books and records relating thereto shall be
open at all reasonable time to inspection and audit by the Committee and the Employer. 
  
 4.2 Valuation From time to time upon the request of the Committee, but at least annually as of the last day of each Plan Year, the Trustee shall prepare a balance sheet of the Investment Fund in accordance with
the Plan and shall deliver copies of the balance sheet to the Committee and the Employer. 
  
 4.3 Discharge of Trustee Ninety days after the filing of any balance sheet under Section 4.2 or any accounting under Section 6, the Trustee shall be forever released and discharged from any liability or
accountability other than for gross negligence or wilful misconduct on the part of the Trustee to anyone with respect to the transactions shown or reflected in such balance sheet or accounting, except with respect to any acts or transactions as to
which the Committee, within such ninety-day period, files written objections with the Trustee. The written approval of the Committee of any balance sheet or accounting so filed by the Trustee, or the Committee’s failure to file written
objections within ninety days, shall be a settlement of such balance sheet or accounting as against all persons, and shall forever release and discharge the Trustee from any liability of accountability to anyone with respect to the transactions
shown or reflected in such balance sheet or accounting other than liability arising out of the Trustee’s gross negligence or wilful misconduct. If a statement of objections is filed by the Committee and the Committee is satisfied that its
objections should be withdrawn or if the balance sheet or accounting is adjusted to its satisfaction, the Committee shall indicate its approval of the balance sheet or accounting in a written statement filed with the Trustee and the Trustee shall be
forever released and discharged from any liability of accountability to anyone in accordance with the immediately preceding sentence. If an objection is not settled by the Committee and the Trustee, the Trustee may start a proceeding for a judicial
settlement of the balance sheet or accounting in any court of competent jurisdictions; the only parties that need be joined in such a proceeding are the Trustee, the Committee, the Employer and any other parties whose participation is required by
law. 
  
 4.4 Right to Judicial Settlement Nothing in this
Agreement shall prevent the Trustee from having its account settled by a court of competent jurisdiction at any time. The only parties that need be joined in any such proceeding are the Employer, the Committee, the Trustee and any other parties
whose participation is required by law. 
  

 9 

 Section 5. Instructions from Committee. 
  
 5.1 Certification of Members of the Committee. From time to time the
Company shall certify to the Trustee in writing the names of the individuals comprising the Committee and shall furnish to the Trustee specimens of their signatures and the signatures of their agents, if any. The Trustee shall be entitled to presume
that the identities of such individuals and their agents are unchanged until it receives a certification from the Company notifying it of any changes. 
  
 5.2 Instructions to Trustee. 
  
 (a) The Trustee shall pay benefits and administrative expenses under the Plan only when it receives (and in accordance with) written instructions of the
Committee indicating the amount of the payment and the name and address of the recipient in accordance with the terms of the Plan. The Trustee need not inquire into whether any payment the Committee instructs the Trustee to make is consistent with
the terms of the Plan or applicable law or otherwise proper. Any payment made by the Trustee in accordance with such instructions shall be a complete discharge and acquittance to the Trustee. If the Committee advises the Trustee that benefits have
become payable with respect to a Participant’s interest in the Trust Fund but does not instruct the Trustee as to the manner of payment, the Trustee shall hold the Participant’s interest in the Trust until the Trustee receives written
instructions from the Committee as to the manner of payment. The Trustee shall not pay benefits from the Trust Fund without such instructions, even though it may be informed from other sources, including, without limitation, a Participant or
Beneficiary, that benefits are payable under the Plan. The Trustee shall have no responsibility to determine when, to whom or in what amount benefits and expenses are payable under the Plan. Further, the Trustee shall have no power, authority or
duty to interpret the Plan or inquire into the decisions or determinations of the Committee, or to question the instructions given to it by the Committee. If the Committee so directs, the Trustee shall segregate amounts payable with respect to the
interest in the Plan of any Participant and administer them separately from the rest of the Trust Fund in accordance with the Committee’s instructions. 
  
 (b) The Trustee may require the Committee to certify in writing that any payment of benefits or expenses it instructs the Trustee to make pursuant to
Section 5.2(a) above is: (i) in accordance with the terms of the Plan and/or (ii) one which the Committee is authorized by the Plan and any other applicable instruments to direct and/or (iii) made for the exclusive purpose of providing benefits to
Participants and Beneficiaries, or defraying reasonable expenses of Plan administration and/or (iv) not made to a party in interest (within the meaning of ERISA Section 3(14)), and/or (v) not a prohibited transaction (within the meaning of Code
Section 4975 and ERISA Section 406). If the Trustee requests, instructions to pay benefits shall be made by the 

  

 10 

 
Committee on forms prepared by the Trustee to include any or all of the above representations. The Trustee shall be fully protected in relying on the truth
of any such representation by the Committee and shall have no duty to investigate whether such representations are correct or to see to the application of any amounts paid to and received by the recipient. 
  
 5.3 Plan Change In the event of an amendment, merger, division, or
termination of the Plan, the Trustee shall continue to disburse funds and to take other proper actions in accordance with the instructions of the Committee. 
  
 Section 6. Change of Trustee 
  
 The Company may at any time remove any person or entity serving as a Trustee hereunder by giving to such person or entity written notice of removal and,
if applicable, the name and address of the successor trustee. Any person or entity serving as a Trustee hereunder may resign at any time by giving written notice to the Company. Any such removal or resignation shall take effect within 30 days after
notice has been given by the Trustee or by the Company, as the case may be. Within those 30 days, the removed or resigned Trustee shall transfer, pay over and deliver any portion of the Trust Fund in its possession or control (less an appropriate
reserve for any unpaid fees, expenses, and liabilities) and all pertinent records to the successor or remaining trustee; provided, however, that any assets which are invested in a collective fund or in some other manner which prevents their
immediate transfer shall be transferred and delivered to the successor trustee as soon as may be practicable. Thereafter, the removed or resigned Trustee shall have no liability for the Trust Fund or for its administration by the successor or
remaining trustee, but shall render an accounting to the Committee of its administration of the Trust Fund through the date on which its Trusteeship shall have been terminated. The Company may also, upon 30 days’ notice to each person currently
serving as a trustee, appoint one or more persons to serve as co-Trustee hereunder. 
  
 Section 7. Miscellaneous 
  
 7.1 Right to Amend This Trust Agreement may be amended from time to time by an instrument executed by the Company; provided, however, that any amendment affecting the powers, duties or liabilities of the Trustee must be approved by
the Trustee, and provided, further, that no amendment may divert any portion of the Trust Fund to purposes other than the exclusive benefit of the Participants and their Beneficiaries prior to the satisfaction of all liabilities for benefits. Any
amendment shall apply to the Trust Fund as constituted at the time of the amendment as well as to that portion of the Trust Fund which is subsequently acquired. 
  

7.2 Compliance with ERISA In the exercise of its powers and the performance of its duties, the Trustee shall act in good faith and in accordance
with the applicable requirements under ERISA. Except as may be otherwise required by ERISA, the Trustee shall not be required to furnish any bond in any jurisdiction for the performance of their duties and, if a bond is required despite this
provision, no surety shall be required on it. 
  

 11 

 7.3 Nonresponsibility for Funding The Trustee shall be under no duty to enforce the payment of any
contributions and shall not be responsible for the adequacy of the Trust Fund to satisfy any obligations for benefits, expenses, and liabilities under the Plan. 
  

7.4 Reports The Trustees shall file any report which they are required by law to file with any governmental authority with respect to this
Trust, and the Committee shall furnish to the Trustee whatever information is necessary to prepare the report. 
  
 7.5 Dealings with the Trustee Persons dealing with the Trustee, including, but not limited to, banks, brokers, dealers, and insurers, shall be
under no obligation to inquire concerning the validity of anything which the Trustee purports to do, nor need any person see to the proper application of any money paid or any property transferred upon the order of the Trustee or to inquire into the
Trustee’s authority as to any transaction. 
  
 7.6
Limitation Upon Responsibilities The Trustee shall have no responsibilities with respect to the Plan or Trust other than those specifically enumerated or explicitly allocated to it under this Trust Agreement or the provisions of ERISA. All
other responsibilities are retained and shall be performed by one or more of the Employer, the Committee, and such advisors or agents as they choose to engage. 
  

The Trustee may execute any of the trusts or powers hereof and perform any of its duties by or through attorneys, agents, receivers or employees and
shall not be answerable for the conduct of the same if chosen with reasonable care and shall be entitled to advice of counsel concerning all matters of trust hereof and the duties hereunder, and may in all cases pay such reasonable compensation to
all such attorneys, agents, receivers and employees as may reasonably be employed in connection with the trusts hereof. The Trustee may act upon the opinion or advice of any attorney (who may be the attorney for the Trustee or attorney for the
Committee), approved by the Trustee in the exercise of reasonable care. The Trustee shall not be responsible for any loss or damage resulting from any action or non-action in good faith in reliance upon such opinion or advice. 
  
 The Trustee shall be protected in acting upon any notice, request, consent,
certificate, order, affidavit, letter, telegram or other paper or document believed to be genuine and correct and to have been signed or sent by the proper person or persons, and the Trustee shall be under no duty to make any investigation or
inquiry as to any statement contained in any such writing but may accept the same as conclusive evidence of the truth and accuracy of the statements therein contained. 
  
 The Trustee shall not be liable for other than their gross negligence or willful misconduct. Except in the case of gross
negligence or wilful misconduct on the part of the Trustee, the Trustee in its corporate capacity shall not be liable for claims of any persons in any manner regarding the Plan; such claims shall be limited to the Trust Fund. Unless the Trustee
participates knowingly in, or knowingly undertakes to conceal, an act or omission of the 

  

 12 

 
Committee or any other fiduciary, knowing such act or omission to be a breach of fiduciary responsibility, the Trustee shall be under no liability for any
loss of any kind which may result by reason of such act or omission. 
  
 Before taking any action hereunder at the request or direction of the Committee, the Trustee may require that indemnity in form and amount satisfactory to the Trustee be furnished for the reimbursement of any and all costs and expenses to
which they may be put including, without limitation, reasonable attorneys’ fees and to protect them against all liability, except liability which is adjudicated to have resulted from the gross negligence or willful misconduct of the Trustee by
reason of any action so taken. 
  
 No provision of this Trust
Agreement shall require the Trustee to expend or risk their own funds or otherwise incur any financial liability in the performance of any of their duties hereunder, or in the exercise of any of their rights or powers, if they shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to them. 
  
 7.7 Qualification of the Plan and Trust The Trustee shall be fully protected in assuming that the Plan and Trust meet the requirements of Code
Sections 401 and 501, respectively, and all the applicable provisions of ERISA, unless they are advised to the contrary in writing by the Committee or a governmental agency. 
  
 7.8 Party in Interest Information The Employer shall provide the Trustee with such information concerning the
relationship between any person or organization and the Plan as the Trustee reasonably requests in order to determine whether such person or organization is a party in interest with respect to the Plan within the meaning of ERISA Section 3(14).

  
 7.9 Disputes If a dispute arises as to the payment of
any funds or delivery of any assets by the Trustee, the Trustee may withhold such payment or delivery until the dispute is determined by a court of competent jurisdiction or finally settled in writing by the parties concerned. 
  
 7.10 Successor Trustee This Trust Agreement shall apply to any person
who shall be appointed to succeed the person currently appointed as the Trustee; and any reference herein to the Trustee shall be deemed to include any one or more individuals or corporations or any combination thereof who or which have at any time
acted as a co-trustee or as the sole trustee. 
  
 7.11
Governing State Law This Trust Agreement shall be interpreted in accordance with the laws of the State of Connecticut to the extent those laws may be applicable under the provisions of ERISA. 
  

 13 

 IN WITNESS WHEREOF, the parties hereto have executed this Trust Agreement as of the day and year first
above written. 
  

									
	 ATTEST:
	 	 	 	 SAVINGS INSTITUTE BANK AND TRUST COMPANY

				
	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	For the Entire Board of Directors
			
	 ATTEST:
	 	 	 	                                       
  , as TRUSTEE

				
	 	 	 	 	 	 	 

  

 14EXHIBIT 10.2

 Exhibit 10.2 
  
 LOAN AGREEMENT 
  
 THIS LOAN AGREEMENT (“Loan Agreement”) is made and entered into as of the
            day of                 , 2004, by and between the SAVINGS INSTITUTE BANK
AND TRUST COMPANY EMPLOYEE STOCK OWNERSHIP PLAN TRUST (“Borrower”), a trust forming part of the Savings Institute Bank and Trust Company Employee Stock Ownership Plan (“ESOP”); and SI FINANCIAL GROUP, INC.
(“Lender”), a corporation organized and existing under the laws of the United States of America. 
  
 W I T N E S S E T H 
  
 WHEREAS, the Borrower is authorized to purchase shares of common stock of SI Financial Group, Inc. (“Common Stock”), either directly from SI Financial Group, Inc. or in open market purchases in an amount not
to exceed                          shares of Common Stock. 
  
 WHEREAS, the Borrower is authorized to borrow funds from the Lender for the purpose of financing authorized purchases of
Common Stock; and 
  
 WHEREAS, the Lender is willing to make a
loan to the Borrower for such purpose. 
  
 NOW, THEREFORE, the
parties agree hereto as follows: 
  
 ARTICLE I 

 
 DEFINITIONS 
  
 The following definitions shall apply for purposes of this Loan Agreement,
except to the extent that a different meaning is plainly indicated by the context: 
  
 Business Day means any day other than a Saturday, Sunday or other day on which banks are authorized or required to close under federal or local law or regulation. 
  
 Code means the Internal Revenue Code of 1986, as amended
(including the corresponding provisions of any succeeding law). 
  
 Default means an event or condition which would constitute an Event of Default. The determination as to whether an event or condition would constitute an Event of Default shall be determined without regard to any applicable
requirements of notice or lapse of time. 
  
 ERISA
means the Employee Retirement Income Security Act of 1974, as amended (including the corresponding provisions of any succeeding law). 
  
 Event of Default means an event or condition described in Article 5. 
  
 Loan means the loan described in section 2.1 
  
 Loan Documents means, collectively, the Loan Agreement, the Promissory Note and the Pledge Agreement and all
other documents now or hereafter executed and delivered in connection with such documents, including all amendments, modifications and supplements of or to all such documents. 
  

 1 

 Pledge Agreement means the agreement described in section 2.8(a). 
  
 Principal Amount means the face amount of the Promissory Note,
determined as set forth in section 2.1(c). 
  
 Promissory
Note means the promissory note described in section 2.3. 
  
 Register means the register described in section 2.9. 
  
 ARTICLE II 
  
 THE LOAN;
PRINCIPAL AMOUNT; 
 INTEREST; SECURITY; INDEMNIFICATION 
  
 Section 2.1 The Loan; Principal Amount. 
  
 (a) The Lender hereby agrees to lend to the Borrower such amount, and at such time, as shall be determined under this
Section 2.1; provided, however, that in no event shall the aggregate amount lent under this Loan Agreement from time to time exceed the greater of (i)
$                    or (ii) the aggregate amount paid by the Borrower to purchase up to
                    shares of Common Stock. 
  
 (b) Subject to the limitations of Section 2.1(a), the Borrower shall determine the amounts borrowed under this Agreement, and the time at which such
borrowings are effected. Each such determination shall be evidenced in a writing which shall set forth the amount to be borrowed and the date on which the Lender shall disburse such amount, and such writing shall be furnished to the Lender by notice
from the Borrower. The Lender shall disburse to the Borrower the amount specified in each such notice on the date specified therein or, if later, as promptly as practicable following the Lender’s receipt of such notice; provided, however, that
the Lender shall have no obligation to disburse funds pursuant to this Agreement following the occurrence of a Default or an Event of Default until such time as such Default or Event of Default shall have been cured. 
  
 (c) For all purposes of this Loan Agreement, the Principal Amount on any date
shall be equal to the excess, if any, of: 
  
 (i)     the aggregate amount disbursed by the Lender pursuant to section 2.1(b) on or before such date; over 
  
 (ii)    the aggregate amount of any repayments of such amounts made before such date. 
  
 The Lender shall maintain on the Register a record of, and shall record in the Promissory
Note, the Principal Amount, any changes in the Principal Amount and the effective date of any changes in the Principal Amount. 
  
 Section 2.2 Interest. 
  
 (a) The Borrower shall pay to the Lender interest on the Principal Amount, for the period commencing with the first disbursement of funds under this Loan
Agreement and continuing until the Principal Amount shall be paid in full, at the rate of              percent
(            %) per annum. Interest payable under this Agreement shall be computed on the basis of a year of 

  

 2 

 
365 days and actual days elapsed (including the first day but excluding the last) occurring during the period to which the computation relates. 

 
 (b) Accrued interest on the Principal Amount shall be payable by the
Borrower on the dates set forth in Schedule I to the Promissory Note. All interest on the Principal Amount shall be paid by the Borrower in immediately available funds. 
  
 (c) Anything in the Loan Agreement or the Promissory Note to the contrary notwithstanding, the obligation of the Borrower to
make payments of interest shall be subject to the limitation that payments of interest shall not be required to be made to the Lender to the extent that the Lender’s receipt thereof would not be permissible under the law or laws applicable to
the Lender limiting rates of interest which may be charged or collected by the Lender. Any such payment referred to in the preceding sentence shall be made by the Borrower to the Lender on the earliest interest payment date or dates on which the
receipt thereof would be permissible under the laws applicable to the Lender limiting rates of interest which may be charged or collected by the Lender. Such deferred interest shall not bear interest. 
  
 Section 2.3 Promissory Note. 
  
 The Loan shall be evidenced by the Promissory Note of the Borrower attached
hereto as an exhibit payable to the order of the lender in the Principal Amount and otherwise duly completed. 
  
 Section 2.4 Payment of Trust Loan. 
  
 The Principal Amount of the Loan shall be repaid in accordance with Schedule I to the Promissory Note on the dates specified therein until fully paid.

  
 Section 2.5 Prepayment. 
  
 The Borrower shall be entitled to prepay the Loan in whole or in part, at any
time and from time to time; provided, however, that the Borrower shall give notice to the Lender of any such prepayment; and provided, further, that any partial prepayment of the Loan shall be in an amount not less than $1,000. Any such prepayment
shall be: (a) permanent and irrevocable; (b) accompanied by all accrued interest through the date of such prepayment; (c) made without premium or penalty; and (d) applied on the inverse order of the maturity of the installment thereof unless the
Lender and the Borrower agree to apply such prepayments in some other order. 
  
 Section 2.6 Method of Payments. 
  
 (a) All payments of principal, interest, other charges (including indemnities) and other amounts payable by the Borrower hereunder shall be made in lawful money of the United States, in immediately available funds, to
the Lender at the address specified in or pursuant to this Loan Agreement for notices to the Lender, on the date on which such payment shall become due. Any such payment made on such date but after such time shall, if the amount paid bears interest,
and except as expressly provided to the contrary herein, be deemed to have been made on, and interest shall continue to accrue and be payable thereon until, the next succeeding Business Day. If any payment of principal or interest becomes due on a
day other than a Business Day, such payment may be made on the next succeeding Business Day, and when paid, such payment shall include interest to the day on which payment is in fact made. 
  

 3 

 (b) Notwithstanding anything to the contrary contained in this Loan Agreement or the Promissory Note, the
Borrower shall not be obligated to make any payment, repayment or prepayment on the Promissory Note if doing so would cause the ESOP to cease to be an employee stock ownership plan within the meaning of section 4975(e)(7) of the Code or qualified
under section 401(a) of the Code or cause the Borrower to cease to be a tax exempt trust under section 501(a) of the Code or if such act or failure to act would cause the Borrower to engage in any “prohibited transaction” as such term is
defined in the section 4975(c) of the Code and the regulations promulgated thereunder which is not exempted by section 4975(c)(2) or (d) of the Code and the regulations promulgated thereunder or in section 406 of ERISA and the regulations
promulgated thereunder which is not exempted by section 408(b) of ERISA and the regulations promulgated thereunder; provided, however, that in each case, the Borrower, may act or refrain from acting pursuant to this section 2.6(b) on the basis of an
opinion of counsel, and any opinion of such counsel. The Borrower may consult with counsel, and any opinion of such counsel shall be full and complete authorization and protection in respect of any action taken or suffered or omitted by it hereunder
in good faith and in accordance with such opinion of counsel. Nothing contained in this section 2.6(b) shall be construed as imposing a duty on the Borrower to consult with counsel. Any obligation of the Borrower to make any payment, repayment or
prepayment on the Promissory Note or refrain from taking any other act hereunder or under the Promissory Note which is excused pursuant to this section 2.6(b) shall be considered a binding obligation of the Borrower, or both, as the case may be, for
the purposes of determining whether a Default or Event of Default has occurred hereunder or under the Promissory Note and nothing in this section 2.6(b) shall be construed as providing a defense to any remedies otherwise available upon a Default or
an Event of Default hereunder (other than the remedy of specific performance). 
  
 Section 2.7 Use of Proceeds of Loan. 
  
 The entire proceeds of the Loan shall be used solely for acquiring shares of Common Stock, and for no other purpose whatsoever. 
  

Section 2.8 Security. 
  
 (a) In order to secure the due payment and performance by the Borrower of all of its obligations under this Loan Agreement, simultaneously with the
execution and delivery of this Loan Agreement by the Borrower, the Borrower shall: 
  
 (i) pledge to the Lender as Collateral (as defined in the Pledge Agreement), and grant to the Lender a first priority lien on and security
interest in, the Common Stock purchased with the Principal Amount, by the execution and delivery to the lender of the Pledge Agreement attached hereto as an exhibit; and 
  
 (ii) execute and deliver, or cause to be executed and delivered, such other agreement, instruments and
documents as the Lender may reasonably require in order to effect the purposes of the Pledge Agreement and this Loan Agreement. 
  
 (b) The Lender shall release from encumbrance under the Pledge Agreement and transfer to the Borrower, as of the date on which any payment or repayment of
the Principal Amount is made, a number of shares of Common Stock held as Collateral determined pursuant to the applicable provisions of the ESOP. 
  

 4 

 Section 2.9 Registration of the Promissory Note. 
  
 (a) The Lender shall maintain a Register providing for the registration of
the Principal Amount and any stated interest and of transfer and exchange of the Promissory Note. Transfer of the Promissory Note may be effected only by the surrender of the old instrument and either the reissuance by the Borrower of the old
instrument to the new holder or the issuance by the Borrower of a new instrument to the new holder. The old Promissory Note so surrendered shall be canceled by the Lender and returned to the Borrower after such cancellation. 
  
 (b) Any new Promissory Note issued pursuant to section 2.9(a) shall carry the
same rights to interest (unpaid and to accrue) carried by the Promissory Note so transferred or exchanged so that there will not be any loss or gain of interest on the note surrender. Such new Promissory Note shall be subject to all of the
provisions and entitled to all of the benefits of this Agreement. Prior to due presentment for registration or transfer, the Borrower may deem and treat the registered holder of any Promissory Note as the holder thereof for purposes of payment and
other purposes. A notation shall be made on each new Promissory Note of the amount of all payments of principal and interest theretofore paid. 
  
 ARTICLE III 
  
 REPRESENTATIONS AND WARRANTIES OF THE BORROWER 
  
 The Borrower hereby represents and warrants to the Lender as follows: 
  
 Section 3.1 Power, Authority, Consents. 
  
 The Borrower has the power to execute, deliver and perform this Loan Agreement, the Promissory Note and Pledge Agreement,
all of which have been duly authorized by all necessary and proper corporate or other action. 
  
 Section 3.2 Due Execution, Validity, Enforceability. 
  
 Each of the Loan Documents, including, without limitation, this Loan Agreement, the Promissory Note and the Pledge Agreement, has been duly executed and
delivered by the Borrower; and each constitutes the valid and legally binding obligation of the Borrower, enforceable in accordance with its terms. 
  
 Section 3.3 Properties, Priority of Liens. 
  
 The liens which have been created and granted by the Pledge Agreement constitute valid, first liens on the properties and assets covered by the Pledge
Agreement, subject to no prior or equal lien. 
  
 Section 3.4
No Defaults, Compliance with Laws. 
  
 The Borrower is
not in default in any material respect under any agreement, ordinance, resolution, decree, bond, note, indenture, order or judgement to which it is a party or by which it is bound, or any other agreement or other instrument by which any of the
properties or assets owned by it is materially affected. 
  

 5 

 Section 3.5 Purchase of Common Stock. 
  
 Upon consummation of any purchase of Common Stock by the Borrower with the
proceeds of the Loan, the Borrower shall acquire valid, legal and marketable title to all of the Common Stock so purchased, free and clear of any liens, other than a pledge to the Lender of the Common Stock so purchased pursuant to the Pledge
Agreement. Neither the execution and delivery of the Loan Documents nor the performance of any obligation thereunder violates any provisions of law or conflicts with or results in a breach of or creates (with or without the giving of notice of lapse
of time, or both) a default under any agreement to which the Borrower is a party or by which it is bound or any of its properties is affected. No consent of any federal, state, or local governmental authority, agency, or other regulatory body, the
absence of which could have a materially adverse effect on the Borrower or the Trustee, is or was required to be obtained in connection with the execution, delivery, or performance of the Loan Documents and the transaction contemplated therein or in
connection therewith, including without limitation, with respect to the transfer of the shares of Common Stock purchased with the proceeds of the Loan pursuant thereto. 
  
 Section 3.6 ESOP; Contributions. 
  
 As of the effective date of the ESOP sponsor’s conversion, the ESOP and the Borrower will be duly created, organized
and maintained by the ESOP sponsor in compliance with all applicable laws, regulations and rulings. The ESOP will qualify as an “employee stock ownership plan” as defined in section 4975(e)(7) of the Code. The ESOP provides that the ESOP
sponsor may make contributions to the ESOP in an amount necessary to enable the Trustee to amortize the Loan in accordance with the terms of the Promissory Note; provided, however, that no such contributions shall be required if they would adversely
affect the qualification of the ESOP under section 401(a) of the Code. 
  
 Section 3.7 Trustee. 
  
 The trustee of the
ESOP has been duly appointed by the ESOP sponsor. 
  
 Section
3.8 Compliance with Laws; Actions. 
  
 Neither the
execution and delivery by the Borrower of this Loan Agreement or any instruments required thereby, nor compliance with the terms and provisions of any such documents by the lender, constitutes a violation of any provision of any law or any
regulation, order, writ, injunction or decree of any court or governmental instrumentality, or an event of default under any agreement, to which the Borrower is a party, to which the Borrower is bound or to which the Borrower is subject, which
violation or event of default would have a material adverse effect on the Borrower. There is no action or proceeding pending or threatened against either the ESOP or the Borrower before any court or administrative agency. 
  

 6 

 ARTICLE IV 
  

REPRESENTATIONS AND WARRANTIES OF THE LENDER 
  
 The Lender hereby represents and warrants to the Borrower as follows: 
  
 Section 4.1 Power, Authority, Consents. 
  
 The Lender has the power to execute, deliver and perform this Loan Agreement, the Pledge Agreement and all documents
executed by the Lender in connection with the Loan, all of which have been duly authorized by all necessary and proper corporate or other action. No consent, authorization or approval or other action by any governmental authority or regulatory body,
and no notice by the Lender to, or filing by the Lender with, any governmental authority or regulatory body is required for the due execution, delivery and performance of this Loan Agreement. 
  
 Section 4.2 Due Execution, Validity, Enforceability.

  
 This Loan Agreement and the Pledge Agreement have been
duly executed and delivered by the Lender, and each constitutes a valid and legally binding obligation of the Lender, enforceable in accordance with its terms. 
  

ARTICLE V 
  
 EVENTS OF DEFAULT 
  
 Section 5.1 Events of Default under Loan Agreement. 
  
 Each of the following events shall constitute an “Event of Default” hereunder: 
  
 (a) Failure to make any payment or mandatory prepayment of principal of the Promissory Note when due, or failure to make any
payment of interest on the Promissory Note not later than five (5) Business Days after the date when due. 
  
 (b) Failure by the Borrower to perform or observe any term, condition or covenant of this Loan Agreement or of any of the other Loan Documents, including,
without limitation, the Promissory Note and the Pledge Agreement. 
  
 (c) Any representation or warranty made in writing to the Lender in any of the Loan Documents, or any certificate, statement or report made or delivered in compliance with this Loan Agreement, shall have been false or misleading in any
material respect when made or delivered. 
  
 Section 5.2
Lender’s Rights upon Event of Default. 
  
 If an
Event of Default under this Loan Agreement shall occur and be continuing, the Lender shall have no rights to assets of the Borrower other than: (a) contributions (other than contributions of Common Stock) that are made by the ESOP sponsor to enable
the Borrower to meet its obligations pursuant to this Loan Agreement and earnings attributable to the investment of such contributions and (b) “Eligible Collateral” (as defined in the Pledge Agreement); provided, however, that: (i) the
value of the Borrower’s assets transferred to the Lender following an Event of Default in satisfaction of the due and unpaid amount of the Loan shall not exceed the amount in default (without regard to amounts owing solely as a result of any

  

 7 

 
acceleration of the Loan); (ii) the Borrower’s assets shall be transferred to the Lender following an Event of Default only to the extent of the failure
of the Borrower to meet the payment schedule of the Loan; and (iii) all rights of the Lender to the Common Stock purchased with the proceeds of the Loan covered by the Pledge Agreement following an Event of Default shall be governed by the terms of
the Pledge Agreement. 
  
 ARTICLE VI 
  
 MISCELLANEOUS PROVISIONS 
  
 Section 6.1 Payments Due to the Lender. 
  
 If any amount is payable by the Borrower to the Lender pursuant to any
indemnity obligation contained herein, then the Borrower shall pay, at the time or times provided therefor, any such amount and shall indemnify the Lender against and hold it harmless from any loss or damage resulting from or arising out of the
nonpayment or delay in payment of any such amount. If any amounts as to which the Borrower has so indemnified the Lender hereunder shall be assessed or levied against the Lender, the Lender may notify the Borrower and make immediate payment thereof,
together with interest or penalties in connection therewith, and shall thereupon be entitled to and shall receive immediate reimbursement therefor from the Borrower, together with interest on each such amount as provided for in section 2.2(c).
Notwithstanding any other provision contained in this Loan Agreement, the covenants and agreements of the Borrower contained in this section 6.1 shall survive: (a) payment of the Promissory Note and (b) termination of this Loan Agreement.

  
 Section 6.2 Payments. 
  
 All payments hereunder and under the Promissory Note shall be made without
set-off or counterclaim and in such amounts as may be necessary in order that all such payments shall not be less than the amounts otherwise specified to be paid under this Loan Agreement and the Promissory Note, subject to any applicable tax
withholding requirements. Upon payment in full of the Promissory Note, the Lender shall mark such Promissory Note “Paid” and return it to the Borrower. 
  
 Section 6.3 Survival. 
  

All agreements, representations and warranties made herein shall survive the delivery of this Loan Agreement and the Promissory Note. 
  
 Section 6.4 Modifications, Consents and Waivers; Entire Agreement.

  
 No modification, amendment or waiver of or with respect to
any provision of this Loan Agreement, the Promissory Note, the Pledge Agreement, or any of the other Loan Documents, nor consent to any departure from any of the terms or conditions thereof, shall in any event be effective unless it shall be in
writing and signed by the party against whom enforcement thereof is sought. Any such waiver or consent shall be effective only in the specific instance and for the purpose for which given. No consent to or demand on a party in any case shall, of
itself, entitle it to any other or further notice or demand in similar or other circumstances. This Loan Agreement embodies the entire agreement and understanding between the Lender and the Borrower and supersedes all prior agreements and
understandings relating to the subject matter hereof. 
  

 8 

 Section 6.5 Remedies Cumulative. 
  
 Each and every right granted to the Lender hereunder or under any other
document delivered hereunder or in connection herewith, or allowed it by law or equity, shall be cumulative and may be exercised from time to time. No failure on the part of the Lender or the holder of the Promissory Note to exercise, and no delay
in exercising, any right shall operate as a waiver thereof, nor shall any single or partial exercise of any right preclude any other or future exercise thereof or the exercise of any other right. The due payment and performance of the obligations
under the Loan Documents shall be without regard to any counterclaim, right of offset or any other claim whatsoever which the Borrower may have against the Lender and without regard to any other obligation of any nature whatsoever which the Lender
may have to the Borrower, and no such counterclaim or offset shall be asserted by the Borrower in any action, suit or proceeding instituted by the Lender for payment or performance of such obligations. 
  
 Section 6.6 Further Assurances; Compliance with Covenants.

  
 At any time and from time to time, upon the request of the
Lender, the Borrower shall execute, deliver and acknowledge or cause to be executed, delivered and acknowledged, such further documents and instruments and do such other acts and things as the Lender may reasonably request in order to fully effect
the terms of this Loan Agreement, the Promissory Note, the Pledge Agreement, the other Loan Documents and any other agreements, instruments and documents delivered pursuant hereto or in connection with the Loan. 
  
 Section 6.7 Notices. 
  
 Except as otherwise specifically provided for herein, all notice, requests,
reports and other communications pursuant to this Loan Agreement shall be in writing, either by letter (delivered by hand or commercial messenger service or sent by registered or certified mail, return receipt requested, except for routine reports
delivered in compliance with Article VI hereof which may be sent by ordinary first-class mail) or telex or telecopier addressed as follows: 
  

	 	(a)	If to the Borrower: 

  
 Savings Institute Bank and Trust Company 
 Employee Stock Ownership Plan Trust 
 c/o
                                        
                     
  

	 	(b)	If to the Lender: 

  
 SI Financial Group, Inc. 
 803 Main Street

 Willimantic, CT 06226 
  
 Any notice, request or communication hereunder shall be deemed to have been given on the day on which it is delivered by hand or by commercial messenger service, or sent
by telex or telecopier, to such party at its address specified above, or, if sent by mail, on the third Business Day after the day deposited in the mail, postage prepaid, addressed as aforesaid. Any party may change the person or address to whom or
which notices are to be given hereunder, by notice duly given hereunder; provided, however, that any such notice shall be deemed to have been given only when actually received by the party to whom it is addressed. 
  

 9 

 Section 6.8 Counterparts. 
  
 This Loan Agreement may be signed in any number of counterparts which, when taken together, shall constitute one and the
same document. 
  
 Section 6.9 Construction; Governing
Law. 
  
 The headings used in the table of contents and in
this Loan Agreement are for convenience only and shall not be deemed to constitute a part hereof. All uses herein of any gender or of singular or plural terms shall be deemed to include uses of the other genders or plural or singular terms, as the
context may require. All references in this Loan Agreement of an Article or section shall be to an Article or section of this Loan Agreement, unless otherwise specified. This Loan Agreement, the Promissory Note, the Pledge Agreement and the other
Loan Documents shall be governed by, and construed and interpreted in accordance with, the laws of the State of Connecticut. 
  
 Section 6.10 Severability. 
  
 Wherever possible, each provision of this Loan Agreement shall be interpreted in such manner as to be effective and valid under applicable law; however,
the provisions of this Loan Agreement are severable, and if any clause or provision hereof shall be held invalid or unenforceable in whole or in part in any jurisdiction, then such invalidity or unenforceability shall affect only such clause or
provision, or part thereof, in such jurisdiction and shall not in any manner affect such clause or provision in any other jurisdiction, or any other clause or provisions in this Loan Agreement in any jurisdiction. Each of the covenants, agreements
and conditions contained in this Loan Agreement are independent, and compliance by a party with any of them shall not excuse non-compliance by such party with any other. The Borrower shall not take any action the effect of which shall constitute a
breach or violation of any provision of this Loan Agreement. 
  
 Section 6.11 Binding Effect: No Assignment or Delegation. 
  
 This Loan Agreement shall be binding upon and inure to the benefit of the Borrower and its successors and the Lender and its successors and assigns. The rights and obligations of the Borrower under this Agreement
shall not be assigned or delegated without the prior written consent of the Lender, and any purported assignment or delegation without such consent shall be void. 
  

 10 

 IN WITNESS WHEREOF, the parties have caused this Loan Agreement to be executed as of the date first
written above. 
  

			
	 SAVINGS INSTITUTE BANK AND TRUST COMPANY
 EMPLOYEE STOCK OWNERSHIP PLAN TRUST

	
	 
	Authorized Trust Officer
	
	SI FINANCIAL GROUP, INC.
		
	 By:
	 	 
	         Rheo A. Brouillard
         President and Chief Executive Officer

  

 11 

 PLEDGE AGREEMENT 
  
 THIS PLEDGE AGREEMENT (“Pledge Agreement”) is made as of the
             day of                     , 2004, by and between the
SAVINGS INSTITUTE BANK AND TRUST COMPANY EMPLOYEE STOCK OWNERSHIP PLAN TRUST (“Pledgor”), and SI FINANCIAL GROUP, INC. (“Pledgee”). 
  
 W I T N E S S E T H 
  
 WHEREAS, this Pledge Agreement is being executed and delivered to the Pledgee pursuant to the terms of a Loan Agreement (“Loan Agreement”), by
and between the Pledgor and the Pledgee; 
  
 NOW, THEREFORE, in
consideration of the mutual agreements contained herein and in the Loan Agreement, the parties hereto do hereby covenant and agree as follows: 
  
 Section 1. Definitions. The following definitions shall apply for purposes of this Pledge Agreement, except to the extent that a different
meaning is plainly indicated by the context; all capitalized terms used but not defined herein shall have the respective meanings assigned to them in the Loan Agreement: 
  
 Collateral shall mean the Pledged Shares and, subject to section 5 hereof, and to the extent permitted by
applicable law, all rights with respect thereto, and all proceeds of such Pledged Shares and rights. 
  
 ESOP shall mean the Savings Institute Bank and Trust Company Employee Stock Ownership Plan. 
  
 Event of Default shall mean an event so defined in the Loan
Agreement. 
  
 Liabilities shall mean all the
obligations of the Pledgor to the Pledgee, howsoever created, arising or evidenced, whether direct or indirect, absolute or contingent, now or hereafter existing, or due or to become due, under the Loan Agreement and the Promissory Note. 

 
 Pledged Shares shall mean all the Shares of Common Stock of
the Pledgee purchased by the Pledgor with the proceeds of the loan made by the Pledgee to the Pledgor pursuant to the Loan Agreement, but excluding any such shares previously released pursuant to section 4. 
  
 Section 2. Pledge. To secure the payment of and performance of
all the Liabilities, the Pledgor hereby pledges to the Pledgee, and grants to the Pledgee, a security interest in, and lien upon, the Collateral. 
  
 Section 3. Representations and Warranties of the Pledgor. The Pledgor represents, warrants, and covenants to the Pledgee as follows:

  
 (a) the execution, delivery and performance of this Pledge
Agreement and the pledging of the Collateral hereunder do not and will not conflict with, result in a violation of, or constitute a default under, any agreement binding upon the Pledgor; 
  
 (b) the Pledged Shares are and will continue to be owned by the Pledgor free and clear of any liens or rights of any other
person except the lien hereunder and under the Loan 

  

 1 

 
Agreement in favor of the Pledgee, and the security interest of the Pledgee in the Pledged Shares and the proceeds thereof is and will continue to be prior
to and senior to the rights of all others; 
  
 (c) this Pledge
Agreement is the legal, valid, binding and enforceable obligation of the Pledgor in accordance with its terms; 
  
 (d) the Pledgor shall, from time to time, upon request of the Pledgee, promptly deliver to the Pledgee such stock powers, proxies, and similar documents,
satisfactory in form and substance to the Pledgee, with respect to the Collateral as the Pledgee may reasonably request; and 
  
 (e) subject to the first sentence of section 4(b), the Pledgor shall not, so long as any Liabilities are outstanding, sell, assign, exchange, pledge or
otherwise transfer or encumber any of its rights in and to any of the Collateral. 
  
 Section 4. Eligible Collateral. 
  
 (a) As used herein the term “Eligible Collateral” shall mean the amount of Collateral which has an aggregate fair market value equal to the amount by which the Pledgor is in default (without regard to any
amounts owing solely as the result of an acceleration of the Loan Agreement) or such lesser amount of Collateral as may be required pursuant to section 13 of this Pledge Agreement. 
  
 (b) The Pledged Shares shall be released from this Pledge Agreement in a manner conforming to the requirements of Treasury
Regulations Section 54.4975-7(b)(8), as the same may be from time to time amended or supplemented, and the applicable provisions of the ESOP. Subject to such Regulations, the Pledgee may from time to time, after any Default or Event of Default, and
without prior notice to the Pledgor, transfer all or any part of the Eligible Collateral in the name of the Pledgee or its nominee, without disclosing that such Eligible Collateral is subject to any rights of the Pledgor and may from time to time,
whether before or after any of the Liabilities shall become due and payable, without notice to the Pledgor, take all or any of the following actions: (i) notify the parties obligated on any of the Eligible Collateral to make payment to the Pledgee
of any amounts due or due to become due thereunder, (ii) release or exchange all or any part of the Eligible Collateral, or compromise or extend or renew for any period (whether or not longer than the original period) any obligations of any nature
of any party with respect thereto, and (iii) take control of any proceeds of the Eligible Collateral. 
  
 Section 5. Delivery. 
  
 (a) The Pledgor shall deliver to the Pledgee upon execution of this Pledge Agreement (i) either (A) certificates for the Pledged Shares, each certificate
duly signed in blank by the Pledgor or accompanied by a stock transfer power duly signed in blank by the Pledgor and each such certificate accompanied by all required documentary or stock transfer tax stamps or (B) if the Trustee does not yet have
possession of the Pledged Shares, an assignment by the Pledgor of all the Pledgor’s rights to and interest in the Pledged Shares and (ii) an irrevocable proxy, in form and substance satisfactory to the Pledgee, signed by the Pledgor with
respect to the Pledged Shares. 
  
 (b) So long as no Default or
Event of Default shall have occurred and be continuing, (i) the Pledgor shall be entitled to exercise any and all voting and other rights pertaining to the Collateral or any part thereof for any purpose not inconsistent with the terms of this Pledge

  

 2 

 
Agreement, and (ii) the Pledgor shall be entitled to receive any and all cash dividends or other distributions paid in respect of the Collateral. 

 
 Section 6. Events of Default. 
  
 (a) If a Default or Event Default shall be existing, in addition to the
rights it may have under the Loan Agreement, the Promissory Note, and this Pledge Agreement, or by virtue of any other instrument, (i) the Pledgee may exercise, with respect to the Eligible Collateral, from time to time, any rights and remedies
available to it under the Uniform Commercial Code as in effect from time to time in the State of Connecticut or otherwise available to it and (ii) the Pledgee shall have the right, for and in the name, place and stead of the Pledgor, to execute
endorsement, assignments, stock powers and other instruments of conveyance or transfer with respect to all or any of the Eligible Collateral. Written notification of intended disposition of any of the Eligible Collateral shall be given by the
Pledgee to the Pledgor at least three (3) Business Days before such disposition. Subject to section 13 below, any proceeds of any disposition of Eligible Collateral may be applied by the Pledgee to the payment of expenses in connection with the
Eligible Collateral, including, without limitation, reasonable attorneys’ fees and legal expenses, and any balance of such proceeds may be applied by the Pledgee toward the payment of such of the Liabilities as are in Default, and in such order
of application, as the Pledgee may from time to time elect. No action of the Pledgee permitted hereunder shall impair or affect its rights in and to the Eligible Collateral. All rights and remedies of the Pledgee expressed hereunder are in addition
to all other rights and remedies possessed by it, including, without limitation, those contained in the documents referred to in the definition of Liabilities in section 1 hereof. 
  
 (b) In any sale of any of the Eligible Collateral after a Default or an Event of Default shall have occurred, the Pledgee is
hereby authorized to comply with any limitation or restriction in connection with such sale as it may be advised by counsel if necessary in order to avoid violation of applicable law (including, without limitation, compliance with such procedures as
may restrict the number of prospective bidders and purchasers or further restrict such prospective bidders or purchasers to persons who will represent and agree that they are purchasing for their own account for investment and not with a view to the
distribution or resale of such Eligible Collateral), or in order to obtain such required approval of the sale or of the purchase by any governmental regulatory authority or official, and the Pledgor further agrees that such compliance shall not
result in such sale’s being considered or deemed not to have been made in a commercially reasonable manner, nor shall the Pledgee be liable or accountable to the Pledgor for any discount allowed by reason of the fact that such Eligible
Collateral is sold in compliance with any such limitation or restriction. 
  
 Section 7. Payment in Full. Upon the payment in full of all outstanding Liabilities, this Pledge Agreement shall terminate and the Pledgee shall forthwith assign, transfer and deliver to the Pledgor,
against receipt and without recourse to the Pledgee, all Collateral then held by the Pledgee pursuant to the Pledge Agreement. 
  
 Section 8. No Waiver. No failure or delay in the part of the Pledgee in exercising any right or remedy hereunder or under any other document
which confers or grants any rights to the Pledgee in respect of the Liabilities shall operate as a waiver thereof nor shall any single or partial exercise of any such rights or remedy preclude any other or further exercise thereof or the exercise of
any other right or remedy of the Pledgee. 
  

 3 

 Section 9. Binding Effect; No Assignment or Delegation. This Pledge Agreement shall be
binding upon and inure to the benefit of the Pledgor, the Pledgee and their respective successors and assigns, except that the Pledgor may not assign or transfer its rights hereunder without the prior written consent of the Pledgee (which consent
shall not unreasonably be withheld). Each duty or obligation of the Pledgor to the Pledgee pursuant to the provisions of this Pledge Agreement shall be performed in favor of any person or entity designated by the Pledgee, and any duty or obligation
of the Pledgee to the Pledgor may be performed by any other person or entity designated by the Pledgee. 
  
 Section 10. Governing Law. This Pledge Agreement shall be governed by and construed in accordance with the laws of the State of Connecticut
applicable to agreements to be performed wholly within the State of Connecticut. 
  
 Section 11. Notices. All notices, requests, instructions or documents hereunder shall be in writing and delivered personally or sent by United States mail, registered or certified, return receipt
requested, with proper postage prepaid as follows: 
  

			
	 (a)
	  	If to the Pledgee:
	 	  	SI Financial Group, Inc.
	 	  	803 Main Street
	 	  	Willimantic, CT 06226
		
	 (b)
	  	If to the Pledgor:
	 	  	Savings Institute Bank and Trust Company
	 	  	Employee Stock Ownership Plan Trust
	 	  	c/o

  
 or at such other address as either of
the parties may designate by written notice to the other party. If delivered personally, the date on which a notice, request, instruction or document is delivered shall be the date on which such delivery is made, and, if delivered by mail, the date
on which such notice, request, instruction, or document is deposited in the mail shall be the date of delivery. Each notice, request, instruction or document shall bear the date on which it is delivered. 
  
 Section 12. Interpretation. Wherever possible each provision of
this Pledge Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision herein shall be prohibited by or invalid under such law, such provision shall be ineffective to the extent of such
prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions hereof. 
  
 Section 13. Construction. All provisions hereof shall be construed so as to maintain (a) the ESOP as a qualified leveraged employee stock
ownership plan under section 401(a) and 4975(e)(7) of the Internal Revenue Code of 1986 (the “Code”), (b) the Trust as exempt from taxation under section 501(a) of the Code and (c) the Trust Loan as an exempt loan under section
54.4975-7(b) of the Treasury Regulations and as described in Department of Labor Regulation section 2550.408b-3. 
  

 4 

 IN WITNESS WHEREOF, this Pledge Agreement has been duly executed by the parties hereto as of the day and
year first above written. 
  

			
	 SAVINGS INSTITUTE BANK AND TRUST COMPANY
 EMPLOYEE STOCK OWNERSHIP PLAN TRUST

		
	 	 	 
	 Authorized Trust Officer

	
	SI FINANCIAL GROUP, INC.
		
	 By:
	 	 
	 Rheo A. Brouillard
 President and
Chief Executive Officer

  

 5 

 PROMISSORY NOTE 
  
 FOR VALUE RECEIVED, the undersigned, SAVINGS INSTITUTE BANK AND TRUST COMPANY EMPLOYEE STOCK OWNERSHIP PLAN TRUST (the
“Borrower”), hereby promises to pay to the order of SI FINANCIAL GROUP, INC. (the “Lender”) up to $             payable in accordance with the Loan
Agreement made and entered into between the Borrower and the Lender of even date herewith (“Loan Agreement”) pursuant to which this Promissory Note is issued. 
  
 The Principal Amount of this Promissory Note shall be payable in accordance with the schedule attached hereto
(“Schedule I”). 
  
 This Promissory Note shall bear
interest at the rate per annum set forth or established under the Loan Agreement, such interest to be payable in accordance with Schedule I. 
  
 Anything herein to the contrary notwithstanding, the obligation of the Borrower to make payments of interest shall be subject to the limitation that
payments of interest shall not be required to be made to the Lender to the extent that the Lender’s receipt thereof would not be permissible under the law or laws applicable to the Lender limiting rates on interest which may be charged or
collected by the Lender. Any such payments on interest which are not made as a result of the limitation referred to in the preceding sentence shall be made by the Borrower to the Lender on the earliest interest payment date or dates on which the
receipt thereof would be permissible under the laws applicable to the Lender limiting rates of interest which may be charged or collected by the Lender. Such deferred interest shall not bear interest. 
  
 Payments of both principal and interest on this Promissory Note are to be
made at the principal office of the Lender or such other place as the holder hereof shall designate to the Borrower in writing, in lawful money of the United States of America in immediately available funds. 
  
 Failure to make any payments of principal on this Promissory Note when due,
or failure to make any payment of interest on this Promissory Note not later than five (5) Business Days after the date when due, shall constitute a default hereunder, whereupon the principal amount of accrued interest on this Promissory Note shall
immediately become due and payable in accordance with the terms of the Loan Agreement. 
  
 This Promissory Note is secured by a Pledge Agreement between the Borrower and the Lender of even date herewith and is entitled to the benefits thereof. 
  

	
	 SAVINGS INSTITUTE BANK AND TRUST COMPANY
 EMPLOYEE STOCK OWNERSHIP PLAN TRUST

	
	 
	Authorized Trust Officer

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