Document:

EXHIBIT 10.2

                        MORTGAGE LOAN PURCHASE AGREEMENT

            This Mortgage Loan Purchase Agreement (the "Agreement"), dated as of
April 25, 2006, is between Wells Fargo Asset Securities Corporation, a Delaware
corporation (the "Company"), and Wells Fargo Bank, N.A., a national banking
association (the "Seller" or "Wells Fargo Bank").

            The Company and the Seller hereby recite and agree as follows:

            1. Defined Terms. Terms used without definition herein shall have
the respective meanings assigned to them in the Pooling and Servicing Agreement,
dated as of April 25, 2006 (the "Pooling and Servicing Agreement"), among the
Company, Wells Fargo Bank, as master servicer (the "Master Servicer"), and HSBC
Bank USA, National Association, as trustee (the "Trustee"), relating to the
issuance of the Company's Mortgage Pass-Through Certificates, Series 2006-AR7
(the "Certificates") or, if not defined therein, in the underwriting agreement,
dated February 15, 2006 and terms agreement, dated March 17, 2006 (together, the
"Underwriting Agreement"), among the Company, Wells Fargo Bank and HSBC
Securities (USA) Inc. ("HSBC"), or in the purchase agreement dated May 10, 2004
and the purchaser terms agreement, dated March 17, 2006 (together, the "Purchase
Agreement"), among the Company, Wells Fargo Bank and HSBC.

            2. Assignment of Servicing Agreements. The Seller agrees to sell,
and the Company agrees to purchase, the mortgage loans (the "Mortgage Loans")
listed on the Mortgage Loan Schedule and all of the Seller's interest with
respect to the Mortgage Loans as the owner in, to and under each Servicing
Agreement (as defined in the Pooling and Servicing Agreement).

            3. Purchase Price; Purchase and Sale. The purchase price (the
"Purchase Price") for the Mortgage Loans shall consist of $[ ] payable by the
Company to the Seller on the Closing Date in immediately available funds.

            Upon payment of the Purchase Price, the Seller shall be deemed to
have transferred, assigned, set over and otherwise conveyed to the Company all
the right, title and interest of the Seller in and to the Mortgage Loans
including all interest and principal received or receivable by the Seller on or
with respect to the Mortgage Loans after the Cut-Off Date (and including
scheduled payments of principal and interest due after the Cut-Off Date but
received by the Seller on or before the Cut-Off Date and Principal Prepayments
received or applied on the Cut-Off Date, but not including payments of principal
and interest due on the Mortgage Loans on or before the Cut-Off Date), together
with all of the Seller's right, title and interest in and to the proceeds of any
related title, hazard, primary mortgage or other insurance policies, the
Seller's right to receive amounts, if any, payable on behalf of any Mortgagor
from the Subsidy Account relating to any Subsidy Loan, the Seller's right, title
and interest in and to the proceeds of the Letters of Credit, all of the
Depositor's rights described in Section 2 above, and all other property and
rights described in the first paragraph of Section 2.01(a) of the Pooling and
Servicing Agreement. The Company hereby directs the Seller, and the Seller
hereby agrees, to deliver to the Trustee or Custodian on behalf of the Trustee,
all documents, instruments and agreements required to be delivered by the
Company to the Trustee under the Pooling and Servicing Agreement; including,
without limitation, the documents required to be delivered under Section 2.01(a)
of the Pooling and Servicing Agreement; and upon the occurrence of a Document
Transfer Event, the documents required to be delivered under Section 2.01(b).
The Seller further agrees to deliver such other documents, instruments and
agreements as the Company or the Trustee shall reasonably request.

            4. Representations and Warranties; Covenants. The Seller hereby
represents and warrants to the Company that (i) the Company's representations
and warranties to the Trustee pursuant to Section 2.03(b) of the Pooling and
Servicing Agreement are true and correct, as of the date thereof, and (ii)
Seller has not dealt with any broker, investment banker, agent or other person
(other than the Company and HSBC) who may be entitled to any commission or
compensation in connection with the sale of the Mortgage Loans. The Seller
hereby agrees to cure any breach of such representations and warranties in
accordance with the terms of the Pooling and Servicing Agreement.

            The Seller hereby agrees to continue to pay on behalf of the Company
and its successors and assignees, promptly as they become due, any lender-paid
primary mortgage insurance premiums ("LPMI Premiums") with respect to any
lender-paid primary mortgage insurance policy (an "LPMI Policy") on each
Mortgage Loan so insured as of the Cut-Off Date, until such Mortgage Loan has
been paid in full or otherwise liquidated; provided, however, that the foregoing
obligation of the Seller shall terminate with respect to all such Mortgage Loans
in the event that either (i) another entity acceptable to the insurers of such
LPMI Policies (the "LPMI Insurers") and the rating agencies rating the
Certificates undertakes to pay such LPMI Premiums, or (ii) the Seller pays
one-time premiums to such LPMI Insurers such that all outstanding LPMI Policies
will remain in force until the related Mortgage Loans have been paid in full or
otherwise liquidated, without the requirement of any further premium payments.

            5. Repurchase or Substitution. (a) The Seller hereby agrees to
repurchase any Mortgage Loan (i) for which any document is not delivered, as
provided in paragraph 3 above, (ii) which is found by the Trustee or the
Custodian to be defective in any material respect, as provided in the Pooling
and Servicing Agreement, or (iii) which is discovered at any time not to be in
conformance with the representations and warranties referred to in paragraph 4
above and which document relating thereto the Seller does not deliver or which
defect or breach the Seller does not cure (as provided in paragraph 4 above)
within 60 days after the date of notice thereof from the Trustee or the Company,
at a price equal to the Repurchase Price. In addition, the Seller hereby agrees
to reimburse the Company for any Reimbursement Amount. Alternatively, the Seller
hereby agrees, if so requested by the Company to substitute for any such
Mortgage Loan, a new mortgage loan having characteristics such that the
representations and warranties referred to in paragraph 4 above would not have
been incorrect (except for representations and warranties as to the correctness
of the Mortgage Loan Schedule) had such substitute mortgage loan originally been
a Mortgage Loan. The Seller further agrees that a substituted mortgage loan will
have (i) an unpaid principal balance no greater than the Scheduled Principal
Balance of the Mortgage Loan for which it is substituted (after giving effect to
the scheduled principal payment due in the month of substitution on the Mortgage
Loan for which such mortgage loan is substituted), (ii) a Net Mortgage Interest
Rate equal to and a Loan-to-Value Ratio no greater than that of the Mortgage
Loan for which it is substituted, (iii) the same Gross Margin and Index as that
of the Mortgage Loan for which it is substituted and (iv) the same frequency of
mortgage rate adjustment as that of the Mortgage Loan for which it is
substituted. The Seller shall remit to the Company, in cash, the difference
between the unpaid principal balance of the Mortgage Loan to be substituted and
the unpaid principal balance of the substitute mortgage loan.

            (b) In the event that the Seller has a right against the originator
or former owner of a Mortgage Loan (the "Prior Holder") for breach of a
representation or warranty regarding the characteristics of such Mortgage Loan
made by the Prior Holder, the Seller may request the Company to repurchase the
Mortgage Loan from the Trust Estate pursuant to Section 3.08 of the Pooling and
Servicing Agreement and the Seller agrees that at the time of the repurchase by
the Company, the Seller will repurchase the Mortgage Loan from the Company at a
price equal to the Repurchase Price.

            At the time of any such repurchase by the Seller, the Seller agrees
either to promptly (i) liquidate such Mortgage Loan, to the extent that the
Seller's rights in respect of the Prior Holder consist of a claim for indemnity
or (ii) transfer such Mortgage Loan to the Prior Holder at a price not less than
that paid by the Seller to the Company.

            6. Underwriting. The Seller hereby agrees to furnish any and all
information, documents, certificates, letters or opinions with respect to the
Mortgage Loans, reasonably requested by the Company in order to perform any of
its obligations or satisfy any of the conditions on its part to be performed or
satisfied pursuant to the Underwriting Agreement or the Purchase Agreement at or
prior to the Closing Date.

            7. Costs. The Company shall pay all expenses incidental to the
performance of its obligations under the Underwriting Agreement and the Purchase
Agreement, including without limitation (i) any recording fees or fees for title
policy endorsements and continuations, (ii) the expenses of preparing, printing
and reproducing the Prospectus, the Prospectus Supplement, the Underwriting
Agreement, the Private Placement Memorandum, the Purchase Agreement, the Pooling
and Servicing Agreement and the Certificates and (iii) the cost of delivering
the Certificates to the offices of HSBC insured to the satisfaction of HSBC.

            8. Servicing. (a) The Seller hereby represents to the Company that
the Mortgage Loans are serviced by the Servicers. The Seller has delivered
copies of each Servicing Agreement to the Company, though omitting schedules of
mortgage loans which are serviced thereunder, but which are not being sold in
this transaction.

            (b) With respect to each Mortgage Loan, the Servicing Fee Rate and
the Master Servicing Fee Rate (which is in addition to the Servicing Fee Rate)
shall be as set forth on the Mortgage Loan Schedule.

            (c) On the Closing Date, the Seller shall assign to the Company its
interest with respect to the Mortgage Loans in, to and under each Servicing
Agreement.

            9. Notices. All demands, notices and communications hereunder shall
be in writing, shall be effective only upon receipt and shall, if sent to the
Company, be addressed to it at Wells Fargo Asset Securities Corporation, 7430
New Technology Way, Frederick, Maryland 21703, Attn: Vice President, Structured
Finance, or, if sent to the Seller, be addressed to it at Wells Fargo Bank,
N.A., 7430 New Technology Way, Frederick, Maryland, 21703, Attn: Vice President,
Structured Finance.

            10. Trustee Beneficiary. The representations, warranties and
agreements made by the Seller in this Agreement are made for the benefit of, and
may be enforced by, the Trustee and the holders of Certificates to the same
extent that the Trustee and the holders of Certificates, respectively, have
rights against the Company under the Pooling and Servicing Agreement in respect
of representations, warranties and agreements made by the Company therein.

            11. Recharacterization. The parties hereto intend the conveyance by
the Seller to the Company of all of its right, title and interest in and to the
Mortgage Loans pursuant to this Agreement to constitute a purchase and sale and
not a loan. Notwithstanding the foregoing, to the extent that such conveyance is
held not to constitute a sale under applicable law, it is intended that this
Agreement shall constitute a security agreement under applicable law and that
the Seller shall be deemed to have granted to the Company a first priority
security interest in all of the Seller's right, title and interest in and to the
Mortgage Loans.

            12. Miscellaneous. This Agreement shall be governed by and construed
in accordance with the laws of the State of New York. Neither this Agreement nor
any term hereof may be changed, waived, discharged or terminated except by a
writing signed by the party against whom enforcement of such change, waiver,
discharge or termination is sought. This Agreement may not be changed in any
manner which would have a material adverse effect on holders of Certificates
without the prior written consent of the Trustee. The Trustee shall be protected
in consenting to any such change to the same extent provided in Article VIII of
the Pooling and Servicing Agreement. This Agreement may be signed in any number
of counterparts, each of which shall be deemed an original, which taken together
shall constitute one and the same instrument. This Agreement shall bind and
inure to the benefit of and be enforceable by the Company and the Seller and
their respective successors and assigns.

<PAGE>

            IN WITNESS WHEREOF, the Company and the Seller have caused this
Agreement to be duly executed by their respective officers as of the day and
year first above written.

                                       WELLS FARGO ASSET SECURITIES
                                             CORPORATION

                                       By:   /s/ Bradley A. Davis
                                          --------------------------------------
                                          Name:  Bradley A. Davis
                                          Title: Vice President

                                       WELLS FARGO BANK, N.A.

                                       By:   /s/ Bradley A. Davis
                                          --------------------------------------
                                          Name:  Bradley A. Davis
                                          Title: Vice PresidentExhibit 10.60
                                  -------------

                        FIRST NATIONAL BANK OF LITCHFIELD
                          DEFERRED DIRECTORS' FEE PLAN

         Pursuant to a resolution of its board of directors, First National Bank
of Litchfield has adopted this amendment to its deferred  compensation  plan for
directors, said amendment to be in the form of a completely restated plan.

                                    ARTICLE I
                                     PURPOSE

         1.1 Purpose.  The First National Bank of Litchfield Deferred Directors'
             -------
Fee Plan (the "Plan") is a nonqualified  deferred  compensation plan designed to
enable directors to defer receipt of compensation on a tax advantaged basis.

         1.2 Effective Date. The Plan as amended and restated shall be effective
             --------------
as of January 1, 2005. The Plan was originally effective as of January 1, 1996.

                                   ARTICLE II
                                   DEFINITIONS

         2.1  Definitions.  As used herein,  the following  terms shall have the
              -----------
following meanings:

         (a)  Bank.  First  National  Bank of  Litchfield,  its  successors  and
assigns.

         (b)  Beneficiary.  The person  designated by the Participant to receive
Plan benefits in the event of the  Participant's  death.  If the Participant has
not  designated  a  Beneficiary,  or if the  Beneficiary  does not  survive  the
Participant, the Participant's Beneficiary will be his or her estate.

         (c) Board of Directors. The Board of Directors of the Bank.

         (d) Bookkeeping  Reserve  Account.  The notional,  bookkeeping  account
maintained for each Participant that is credited with the Participant's Deferred
Compensation (and the earnings and losses allocable thereto)

         (e) Change in Control.  A change in  ownership of the Bank, a change in
effective  control of the Bank,  or a change in the  ownership of a  substantial
portion of the assets of the Bank.

                  (i) A change in  ownership  of the Bank occurs when any person
         (or two or more persons acting as a group) acquires  ownership of stock
         of the Bank  which,  together  with stock held by such person or group,
         constitutes  more than  fifty  percent  (50%) of the stock of the Bank.
         However,  if any person or group of persons is  considered  to own more
         than fifty percent (50%) of the stock of the Bank,  the  acquisition of
         additional  stock  by the  same  person  or  group  of  persons  is not
         considered to result in a change in ownership of the Bank.

                  (ii) A change in effective  control of the Bank occurs either:
         (A) when any person (or two or more persons acting as a group) acquires
         (or has acquired during the preceding twelve month period) ownership of
         stock of the Bank possessing  thirty-five  percent (35%) or more of the
         stock of the Bank;  or (B) a majority of the Board of  Directors of the
         Bank are  replaced  during a twelve month period by persons who are not
         endorsed by a majority of the Board of  Directors of the Bank in office
         prior to such  change.  However,  if any  person or group of persons is
         considered to have acquired  effective  control of the Bank

                                       7
<PAGE>

         pursuant to this Section  2.1(e)(ii),  the  acquisition  of  additional
         control  of the Bank by the same  person  or  group of  persons  is not
         considered to result in a change in effective control of the Bank.

                  (iii) A change in  ownership of a  substantial  portion of the
         assets of the Bank  occurs on the date that any one  person  (or two or
         more persons  acting as a group)  acquires (or has acquired  during the
         preceding  twelve month period)  assets from the Bank that have a total
         gross fair market value equal to or greater than forty percent (40%) of
         the total  gross  fair  market  value of all of the  assets of the Bank
         immediately  prior to such  acquisition  or  acquisitions.  Gross  fair
         market value means the value of the assets of the Bank, or the value of
         the  assets  being  disposed  of,  determined  without  regard  to  any
         liabilities associated with such assets.

         (f) Code. The Internal Revenue Code of 1986, as amended.

         (g)  Deferred   Compensation.   The  amount  of  compensation   that  a
Participant elected to defer under Section 4.1(b) of the Plan.

         (h) Director. A member of the Board of Directors of the Bank.

         (i)  Disability.  A  condition:  (i) which causes a  Participant  to be
unable to engage in any substantial  gainful activity by reason of any medically
determinable  physical or mental  impairment  which can be expected to result in
death or which can be expected to last for a continuous  period of not less than
twelve months;  or (ii) which results in a Participant  receiving,  by reason of
any medically  determinable  physical or mental impairment which can be expected
to result in death or which can be expected to last for a  continuous  period of
not less than twelve  months,  income  replacement  benefits for a period of not
less than three months under an accident and health plan  covering  employees of
the Bank.  Disability  shall be deemed to exist only when a written  application
has been filed with the Board of  Directors  by or on behalf of the  Participant
and,  with  respect to a condition  described  in Section  2.1(i)(i),  when such
Disability  is  certified  to the Board of  Directors  by a  licensed  physician
approved by the Board of Directors.

         (j) Participant.  A Director who is eligible to participate in the Plan
pursuant to Article III.

         (k) Plan. The First National Bank of Litchfield Deferred Directors' Fee
Plan, including any amendments, rules and regulations adopted pursuant hereto.

         (l)  Unforeseeable  Emergency.  A  severe  financial  hardship  to  the
Participant  resulting from: (i) an illness or accident of the Participant,  the
Participant's  spouse,  or a dependent of the Participant (as defined in Section
152(a) of the Code); (ii) loss of the Participant's property due to casualty; or
(iii) other similar  extraordinary and unforeseeable  circumstances arising as a
result of events beyond the control of the Participant.  The determination of an
Unforeseeable  Emergency  shall be made by the  Board of  Directors  in its sole
discretion, based on such information as the Board of Directors shall deem to be
necessary.

                                   ARTICLE III
                                   ELIGIBILITY

         3.1 Eligibility. Eligibility to participate in the Plan is limited to a
             -----------
select group of management composed of the Directors of the Bank.

                                   ARTICLE IV
                              DEFERRED COMPENSATION

         4.1      Deferral of Directors' Fees.
                  ---------------------------

         (a) For a calendar  year  beginning  on or after  January  1,  2006,  a
Participant may not elect to defer any portion of the retainer fees,  board fees
and  committee  meeting fees (or other such  compensation)  that he or she might
earn with  respect to his or her  services as a Director of the Bank during such
calendar year.

                                       8
<PAGE>

         (b)  For a  calendar  year  beginning  prior  to  January  1,  2006,  a
Participant  was able to elect to defer all or any portion of the retainer fees,
board fees and committee  meeting fees (or other such  compensation)  that he or
she might earn with  respect to his or her  services  as a Director  of the Bank
during such calendar year and that would otherwise be payable in cash; provided,
however,  the Participant had to irrevocably  elect to defer such amounts before
the first day of the calendar  year.  In the case of a Director who first became
eligible to  participate in the Plan after the beginning of a calendar year, the
deferral election under this Section 4.1(b) had to be made not later than thirty
(30) days after becoming eligible to participate in the Plan. The election could
apply only to retainer  fees,  board fees and  committee  meeting fees (or other
such compensation)  that relate to services performed  subsequent to the date of
the election.

         4.2      Election of Time of Distribution.
                  --------------------------------

         (a) In Notice 2005-1,  Question  19(c),  the Internal  Revenue  Service
stated that, with respect to deferred compensation subject to Code Section 409A,
a  nonqualified  deferred  compensation  arrangement  may be  amended to allow a
participant  to make a new payment  election with respect to the time of payment
of his or her deferred compensation,  and such election will not be treated as a
change in the time of payment of the  deferred  compensation  under Code Section
409A(a)(4)  or an  acceleration  of a payment  under  Code  Section  409A(a)(3),
provided that: (i) the amendment is adopted and effective on or before  December
31,  2005;  and (ii) the  participant  makes an election  regarding  the time of
payment of his or her deferred compensation on or before December 31, 2005.

         Pursuant to Notice 2005-1,  Question  19(c),  on or before December 31,
2005, a Participant may elect to receive, or commence to receive, a distribution
of all (and not less than all) of his or her Bookkeeping  Reserve Account on the
earliest of: (i) the February 1 specified by the  Participant  in such  election
(but not later than February 1, 2015); (ii) the first day of the month following
the Participant's  separation from service with the Bank; or (iii) the first day
of the month following the Participant's  Disability;  subject,  however, to the
Participant's  election  pursuant to Section 4.5  regarding  his or her Deferred
Compensation for calendar year 2005.

         (b) For a calendar year beginning prior to January 1, 2006, at the time
a  Participant  made an  election  to defer  pursuant  to  Section  4.1(b),  the
Participant  could  elect  that the  portion of his or her  Bookkeeping  Reserve
Account  attributable to such Deferred  Compensation  would be  distributed,  or
would commence to be distributed, on the date specified by the Participant.

         4.3      Election of Form of Distribution.
                  --------------------------------

         (a) In Notice 2005-1,  Question  19(c),  the Internal  Revenue  Service
stated that, with respect to deferred compensation subject to Code Section 409A,
a  nonqualified  deferred  compensation  arrangement  may be  amended to allow a
participant  to make a new payment  election with respect to the form of payment
of his or her deferred compensation,  and such election will not be treated as a
change in the form of payment of the  deferred  compensation  under Code Section
409A(a)(4)  or an  acceleration  of a payment  under  Code  Section  409A(a)(3),
provided that: (i) the amendment is adopted and effective on or before  December
31,  2005;  and (ii) the  participant  makes an election  regarding  the form of
payment of his or her deferred compensation on or before December 31, 2005.

         Pursuant to Notice 2005-1,  Question  19(c),  on or before December 31,
2005, a  Participant  may elect to receive a  distribution  of all (and not less
than all) of his or her Bookkeeping  Reserve Account either in a single lump sum
or in substantially equal annual  installments,  as described in Section 6.2(a),
subject,  however,  to  the  Participant's  election  pursuant  to  Section  4.5
regarding his or her Deferred Compensation for calendar year 2005.

         (b) For a calendar year beginning prior to January 1, 2006, at the time
a  Participant  made an  election  to defer  pursuant  to  Section  4.1(b),  the
Participant  could  elect  that the  portion of his or her  Bookkeeping  Reserve
Account  attributable  to such Deferred  Compensation  would be distributed in a
single lump sum or in substantially  equal annual  installments over a period of
years  selected  by the  Participant.  If a  Participant  failed to make such an
election,  the  Participant  was  deemed  to have  elected  that  such  Deferred
Compensation would be distributed in a single lump sum.

                                       9
<PAGE>

         4.4      Accounting for Deferred Compensation.
                  ------------------------------------

         (a) A Participant's Deferred Compensation shall be credited by the Bank
to a Bookkeeping Reserve Account maintained for each Participant. A payment to a
Participant or Beneficiary  shall be charged to his or her  Bookkeeping  Reserve
Account as of the time the payment is made.

         (b)  With   respect  to  the  Deferred   Compensation   credited  to  a
Participant's  Bookkeeping Reserve Account,  such Deferred Compensation shall be
credited  with  earnings  and  losses  in the  same  manner  as if the  Deferred
Compensation  were  actually  invested  in  one  or  more  predetermined  actual
investment      options      (as     defined     in      Regulation      Section
31.3121(v)(2)-1(d)(2)(i)(B))  that are  offered  by the Board of  Directors  and
elected by the  Participant.  A Participant may specify the percentage of his or
her Bookkeeping  Reserve Account which will be credited with earnings and losses
based on each such  predetermined  actual investment option. The Participant may
change his or her election  under this  Section  4.4(b) at any time by providing
notice to the Board of Directors, and any such change shall be effective as soon
as administratively feasible following the date on which such change in election
is received by the Board of Directors.

         4.5      Termination of Participation in the Plan.
                  ----------------------------------------

         (a) In Notice 2005-1,  Question 20, the Internal Revenue Service stated
that,  with respect to deferred  compensation  subject to Code  Section  409A, a
nonqualified  deferred  compensation  arrangement  may be  amended  to  allow  a
participant to terminate participation in the arrangement,  in whole or in part,
without causing the  arrangement to fail to conform to the  requirements of Code
Section  409A(a)(2),(3)  or (4), provided that: (i) the amendment is adopted and
effective on or before December 31, 2005; (ii) the participant makes an election
to terminate his or her  participation in the arrangement,  in whole or in part,
on or before December 31, 2005; and (iii) the amounts subject to the termination
are includible in the income of the  participant  in 2005 (or, if later,  in the
taxable year in which they become earned and vested).

         (b) Pursuant to Notice 2005-1,  Question 20, on or before  December 31,
2005, a Participant may elect to terminate his or her participation in the Plan,
in whole or in part,  and to  receive a single  lump sum  distribution  equal to
either:  (i) all of the Bookkeeping  Reserve Account  attributable to his or her
Deferred  Compensation  for calendar year 2005;  or (ii) all of the  Bookkeeping
Reserve  Account  attributable  to his  or her  Deferred  Compensation  for  all
calendar years. For purposes of this Section 4.5(b), a Participant shall include
a former  Director and the survivor of a former  Director who is receiving or is
entitled to receive  Deferred  Compensation in the future under the terms of the
Plan.  If a Director,  a former  Director or the  survivor of a former  Director
elects to terminate his or her participation in the Plan and to receive a single
lump sum  distribution  equal to all or a  portion  of the  Bookkeeping  Reserve
Account attributable to his or her Deferred Compensation, then such distribution
shall be made on or before  December  31,  2005 and shall be  includible  in the
taxable income of the Director,  the former Director or the survivor of a former
Director for calendar year 2005.

                                    ARTICLE V
                                     VESTING
                                     -------

         5.1 Vesting.  All  Deferred  Compensation  credited to a  Participant's
             -------
Bookkeeping  Reserve  Account shall be one hundred  percent (100%) vested at all
times.

                                   ARTICLE VI
                      DISTRIBUTION OF DEFERRED COMPENSATION

         6.1      Time of Distribution of Deferred Compensation.
                  ---------------------------------------------

         (a) A Participant's Deferred Compensation will be distributed,  or will
commence to be  distributed,  at the time of  distribution  elected  pursuant to
Section 4.2. If the Participant  does not elect a time of distribution of all or
a portion of his or her Deferred Compensation pursuant to Section 4.2, then such
Deferred  Compensation will be distributed,  or will commence to be distributed,
on the earliest of:

                                       10
<PAGE>

                  (i) the  first day of the month  following  the  Participant's
         separation from service with the Bank;

                  (ii) the first day of the month  following  the  Participant's
         Disability; or

                  (iii) February 1, 2015.

         (b) Whether or not the  Participant  elected a time of  distribution of
all or a portion of his or her  Deferred  Compensation  pursuant to Section 4.2,
the Deferred Compensation will be distributed as follows:

                  (i) All of the  Participant's  Deferred  Compensation  will be
         distributed  on the first day of the first month that is at least sixty
         (60) days after the death of the Participant; and

                  (ii)  All  or  a  portion   of  the   Participant's   Deferred
         Compensation  will be distributed on the date of the  determination  by
         the  Board  of  Directors   that  the   Participant   has  incurred  an
         Unforeseeable Emergency; provided, however, that the amount of Deferred
         Compensation  that  may be  distributed  pursuant  to an  Unforeseeable
         Emergency  may  not  exceed  the  amount   necessary  to  satisfy  such
         Unforeseeable Emergency, plus amounts necessary to pay taxes reasonably
         anticipated as a result of the distribution,  after taking into account
         the extent to which such Unforeseeable  Emergency is or may be relieved
         through reimbursement or compensation by insurance or otherwise,  or by
         the  liquidation  of  the  Participant's  assets  (to  the  extent  the
         liquidation  of such assets  would not itself  cause  severe  financial
         hardship).

         6.2      Form of Distribution of Deferred Compensation.
                  ---------------------------------------------

         (a) A Participant's  Bookkeeping Reserve Account attributable to his or
her  Deferred  Compensation  will  be  distributed,   or  will  commence  to  be
distributed,  in one of the following forms of  distribution,  as elected by the
Participant pursuant to Section 4.3:

                  (i) A single lump sum; or

                  (ii) Substantially  equal annual installments over a period of
         years selected by the  Participant,  but not in excess of the number of
         years from and including the year containing the  commencement  date of
         the  distribution of such Deferred  Compensation  through and including
         2015.  The first  installment  shall be paid to the  Participant at the
         time determined pursuant to Section 6.1. Subsequent  installments shall
         be paid to the Participant annually on February 1 of the calendar year,
         commencing  with the calendar year  immediately  following the calendar
         year in which the  Participant  received  the first  installment.  Each
         installment  shall  be  equal  to:  (A)  the  balance  credited  to the
         Participant's  Bookkeeping  Reserve  Account  on  the  last  day of the
         preceding calendar year (or, with respect to the final installment, the
         last  business  day  of the  month  preceding  the  date  of the  final
         installment);  multiplied by (B) a fraction,  the numerator of which is
         one  and the  denominator  of  which  is the  number  of  years  in the
         installment period minus the number of annual  installments  previously
         paid to the  Participant.  For example,  if a Participant  commences to
         receive his or her  Deferred  Compensation  on  February  1, 2010,  the
         installment   period  cannot  exceed  six  years  (2010  through  2015,
         inclusive).   Therefore,   if  the  Participant   elected  the  maximum
         installment period, the first installment will be 1/6th of the account,
         the second  installment  will be 1/5th of the account,  and so on. If a
         Participant begins to receive  installment  payments but he or she dies
         before  his  or  her  entire  Bookkeeping   Reserve  Account  has  been
         distributed,   the  entire  remaining   balance  of  the  Participant's
         Bookkeeping  Reserve  Account  will be paid in a single lump sum to the
         Participant's  Beneficiary  on the first day of the first month that is
         at least sixty (60) days after the death of the Participant.

         (b) Notwithstanding the provisions of Section 6.2(a), if a distribution
is  payable  pursuant  to  Section  6.1(b)(i)  (death)  or  Section   6.1(b)(ii)
(Unforeseeable  Emergency),  or if a  Participant  fails  to  elect  a  form  of
distribution  pursuant to Section 4.3,  the  Participant's  Bookkeeping  Reserve
Account  attributable  to  all  of his or  her  Deferred  Compensation  will  be
distributed in a single lump sum.

         6.3 Cashout on Change In Control.  Notwithstanding  the  provisions  of
             ----------------------------
Section  6.1  and  Section  6.2,  if a  Change  in  Control  occurs,  then  each
Participant's   entire  Bookkeeping   Reserve  Account  shall  be  paid  to  the
Participant  in a single  lump sum on the first day of the month  following  the
date of the Change in Control.

                                       11
<PAGE>

         6.4  Cashout  of Small  Accounts.  Notwithstanding  the  provisions  of
              ---------------------------
Section 6.1 and Section 6.2, if a Participant's Bookkeeping Reserve Account does
not exceed  $10,000 at the time of his or her  separation  from service with the
Bank, then the Participant's entire Bookkeeping Reserve Account shall be paid to
the Participant in a single lump sum on the first day of the month following the
Participant's separation from service with the Bank.

                                   ARTICLE VII
                                     FUNDING

         7.1 Funding. It is the intention of the Bank, the eligible Participants
and their Beneficiaries,  and each other party to the Plan that the arrangements
hereunder be unfunded for tax purposes.  The rights of eligible Participants and
their Beneficiaries shall be solely those of a general unsecured creditor of the
Bank. The Plan  constitutes a mere promise by the Bank to make benefit  payments
in the future.

         The  obligation  of the Bank to pay  benefits  under this Plan shall be
interpreted as a contractual  obligation to pay only those amounts  described in
Article IV in the manner and under the conditions prescribed in Article VI . Any
assets set aside to fund deferred compensation shall be subject to the claims of
general  creditors,  and no person  other than the Bank shall,  by virtue of the
provisions of the Plan, have any interest in such funds.

         If the Bank wishes,  it may adopt and fully or partially  fund a trust,
the terms of which shall conform with the language of the model trust  agreement
set forth in Revenue  Procedure 92-64 issued by the Internal Revenue Service (or
any  successor  thereto)  relating  to trusts  established  in  connection  with
unfunded  deferred  compensation  arrangements (or, if such trusts are no longer
available  for  use  in   connection   with   unfunded   deferred   compensation
arrangements,  any other instrument which is designed to provide a similar level
of security and to have the same tax results as such  trust).  All of the assets
of such trust  shall be located,  and shall  remain  located,  within the United
States,  whether or not such  assets  are  available  to  satisfy  the claims of
general creditors.  In addition, the trust shall not contain any provision which
states  that the  assets of the trust will be  restricted  to the  provision  of
benefits under the Plan in the event of a change in the financial  health of the
Bank (or any  successor  thereof),  whether or not such assets are  available to
satisfy the claims of general creditors.

                                  ARTICLE VIII
                                 ADMINISTRATION

         8.1  Administration.  The Plan  will be  administered  by the  Board of
              --------------
Directors.  However, if the Board of Directors so elects, the Board of Directors
may  designate  a person or  persons  to  perform  one or more of the  functions
assigned to the Board of  Directors  pursuant  to the terms of the Plan.  In the
event the Board of Directors  makes such a  designation,  such person or persons
shall have all of the power and authority  which the Plan grants to the Board of
Directors to perform such function or functions.

         8.2   Determinations.   The  Board  of  Directors  will  have  absolute
               --------------
discretion  to:  (a)  interpret  the  Plan;  (b)  create  and  revise  rules and
procedures  for the  administration  of the Plan; and (c) take any other actions
and make any other  determinations  as it may deem  necessary and proper for the
administration of the Plan. Any expenses  incurred in the  administration of the
Plan will be paid by the Bank. All decisions and  determinations by the Board of
Directors of the Bank shall be final and binding on all persons,  including  but
not  limited  to  the  Bank  and  the   Participants   in  the  Plan  and  their
Beneficiaries.

                                       12
<PAGE>

                                   ARTICLE IX
                            AMENDMENT AND TERMINATION

         9.1  Amendment.  The Board of Directors  retains the right to modify or
              ---------
amend the Plan at any time; provided, however, that no modification or amendment
of the Plan may permit any distribution of a Participant's  Bookkeeping  Reserve
Account  other than in  accordance  with the  provisions  of Section 409A of the
Code; and provided further,  that no modification or amendment of the Plan shall
adversely  affect  the rights of any  Participant  to  amounts  credited  to the
Bookkeeping  Reserve  Account  maintained  on  his  or her  behalf  before  such
modification  or  amendment;  and  provided  further,  that  the Plan may not be
modified or amended  following a Change in Control of the Bank.  Notice of every
such modification or amendment shall be given in writing to each Participant.

         9.2      Termination.
                  -----------

         The Plan can be  terminated  by action of the Board of Directors of the
Bank only if: (a) all nonqualified  deferred compensation plans of the same type
(i.e., all account balance plans)  maintained by the Company are terminated with
respect to all  Directors;  (b) no payments are made within  twelve months after
the termination of the Plan; (c) all payments are made within  twenty-four  (24)
months  after the  termination  of the  Plan;  and (d) the Bank does not adopt a
nonqualified  deferred  compensation  plan of the same type  (i.e.,  an  account
balance plan) for a period of five years with respect to any Director  following
the date of Plan termination. If the Plan is terminated, all amounts credited to
Participants'  Bookkeeping Reserve Accounts will be distributed in a lump sum on
the  first  day of the  month  coinciding  with  or  next  following  the  first
anniversary of the termination of the Plan.

         In addition, all amounts credited to Participants'  Bookkeeping Reserve
Accounts  will  be  distributed  in a  lump  sum  as  soon  as  administratively
practicable  following the termination of the Plan and all substantially similar
arrangements  sponsored by the Bank,  provided that the  termination of the Plan
occurs:  (a) within thirty (30) days preceding or within twelve months following
a Change in Control; (b) within twelve months following a corporate  dissolution
that is taxable under Code Section 331; or (c) within  twelve  months  following
the bankruptcy court's approval of the termination of the Plan.

                                    ARTICLE X
                                  MISCELLANEOUS

         10.1 Non-Guarantee of Service.  Participation in the Plan does not give
              ------------------------
any person any right to be retained  in the  service of the Bank.  The right and
power of the Bank to terminate any individual is expressly reserved.

         10.2 Rights of Participants and  Beneficiaries to Benefits.  All rights
              -----------------------------------------------------
of a  Participant  or  Beneficiary  under  the  Plan to  amounts  credited  to a
Bookkeeping  Reserve  Account  are  mere  unsecured  contractual  rights  of the
Participant or Beneficiary and are solely those of unsecured,  general creditors
of the Bank.

         10.3 No  Assignment.  No rights  or  benefits  under the Plan  shall be
              --------------
subject in any way to  voluntary  or  involuntary  alienation,  sale,  transfer,
assignment, pledge, attachment,  garnishment, execution, or encumbrance, and any
attempt to accomplish the same shall be void.

         10.4  Withholding.  The Bank  shall  have the right to deduct  from any
               -----------
distribution  any taxes  required by law to be withheld from a Participant  with
respect to such award.

         10.5 Account  Statements.  Periodically  (as determined by the Board of
              -------------------
Directors),  each Participant  shall receive a statement  indicating the amounts
credited to and distributed from the Participant's  Bookkeeping  Reserve Account
during such period.

         10.6 Masculine,  Feminine,  Singular and Plural. The masculine shall be
              ------------------------------------------
read in the feminine,  the singular in the plural, and vice versa,  whenever the
context shall so require.

         10.7 Code Section 409A.  Any provision of the Plan that is  susceptible
              -----------------
to more  than one  interpretation  shall  be  interpreted  in a  manner  that is
consistent with the Plan satisfying the requirements of Code Section 409A.

                                       13
<PAGE>

         10.8  Governing  Law.  Except to the  extent  preempted  by  applicable
               --------------
federal laws, the Plan shall be construed  according to the laws of the State of
Connecticut, other than its choice of law principles.

         10.9  Titles.  The titles to  Articles  and  Sections  in this Plan are
               ------
placed  herein for  convenience  of  reference  only,  and the Plan is not to be
construed by reference thereto.

         10.10 Other  Plans.  Nothing in this Plan shall be  construed to affect
               ------------
the rights of a Participant,  his or her Beneficiaries,  or his or her estate to
receive any retirement or death benefit under any tax qualified or  nonqualified
pension plan, deferred compensation agreement, insurance agreement, tax-deferred
annuity or other retirement plan of the Bank.

         Dated at Litchfield, Connecticut this 9th day of December, 2005.

Witness:                           FIRST NATIONAL BANK OF LITCHFIELD

/s/ Patricia A. Carlson            By        /s/ Joseph J. Greco
-------------------------------      ------------------------------------------

                                       Its President & Chief Executive Officer

                                       14

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