Document:

Exhibit
10.5.1

EMPLOYMENT
AGREEMENT

THIS AGREEMENT (the “Agreement”)
made this 16th day of January, 2007, by and between HAMPDEN
BANK, a Massachusetts-chartered savings bank, with its principal administrative
office at 19 Harrison Avenue, Springfield, MA 01102 (the “Bank”), HAMPDEN
BANCORP, INC., a corporation organized under the laws of the State of Delaware,
the holding company for the Bank (the “Holding Company”), and THOMAS R. BURTON
(the “Executive”).

WHEREAS, Executive serves in
a position of substantial responsibility; and

WHEREAS, the Bank wishes to
assure Executive’s services for the term of this Agreement; and

WHEREAS, Executive is
willing to serve in the employ of the Bank during the term of this Agreement.

NOW, THEREFORE, in
consideration of the mutual promises, terms, provisions, and conditions
contained in this Agreement, the parties hereby agree as follows:

1.             EMPLOYMENT.

(a)           POSITION. Executive is employed as the President and Chief
Executive Officer of the Bank. Executive will perform all duties and shall have
all powers commonly incident to the offices of President and CEO of the Bank or
which, consistent with those offices, are delegated to him by the Board of
Directors of the Bank (the “Board”). During the term of this Agreement,
Executive also agrees to serve, if elected, as an officer and/or director of
any subsidiary or affiliate of the Bank or the Holding Company and to carry out
the duties and responsibilities reasonably appropriate to those offices.

(b)           TERM. The period of Executive’s employment under this
Agreement shall be deemed to have commenced as of the date written above and
shall continue for a period of thirty-six (36) full calendar months (“Initial
Term”), or until the employment relationship is terminated pursuant to Sections
3 or 4 hereof. Upon the expiration of the Initial Term, this Agreement will be
renewed automatically for successive thirty-six-month periods (“Renewal Terms”),
unless the Board or Executive elects not to extend the term of the Agreement by
giving written notice to the other party in accordance with the terms of this
Agreement. Executive’s employment shall continue during such Renewal Terms
until the employment relationship is terminated pursuant to Sections 3 or 4
hereof.

(c)           DEVOTION TO DUTIES AND LOYALTY. While Executive is
employed hereunder, he will: (i) use his best efforts, skill and abilities to
perform faithfully all duties assigned to him pursuant to this Agreement, (ii)
devote his full business time and energies to the business and the affairs of the
Bank; (iii) not render any similar services for his own account or any other
person or entity without the prior written consent of the Bank; and (iv) not
undertake any other full-time employment from any person or entity without
prior written consent of the Bank. However, from time to time, Executive may,
with the permission of the Board, serve on the boards of directors of, and hold
any other offices or positions in, companies or organizations that will not
present any conflict of interest with the Bank or any of its

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subsidiaries or affiliates,
unfavorably affect the performance of the Executive’s duties pursuant to this
Agreement, or violate any applicable statute or regulation.

2.             COMPENSATION.

(a)           BASE SALARY. The Bank agrees to pay Executive a base
salary at the annual rate of $250,000 per year (less applicable withholding
taxes), payable in accordance with the Bank’s customary payroll practices.

(1)           The Board shall review
annually the rate of the Executive’s base salary based upon factors they deem
relevant, and may maintain or increase his base salary, in its discretion. In
addition, the Board may decrease the base salary in the event that the Board
determines that financial exigencies require such decrease, provided that the
compensation of all executives of the Bank is also reduced at the same time in
a substantially commensurate manner.

(2)           In the absence of
action by the Board, the Executive shall continue to receive a base salary at
the annual rate specified on the Effective Date or, if another rate has been
established under the provisions of this Section 2, the rate last properly
established by action of the Board under the provisions of this Section 2.

(b)           BONUSES. Executive shall be eligible to participate in
discretionary bonuses or other discretionary incentive compensation programs
that the Bank may award from time to time to Executives pursuant to bonus plans
or otherwise.

(c)           STOCK-BASED COMPENSATION. The Executive will be eligible
to participate in the Bank’s Employee Stock Ownership Plan and to be considered
by the Board for grants or awards of stock options or other stock-based
compensation under any stock-based incentive plans that the Bank elects to
implement. All such grants or awards shall be governed by the relevant plan
documents and requirements and shall be evidenced by the Bank’s then-standard
form of stock option, restricted stock or other applicable agreement.

(d)           BENEFIT PLANS. Executive shall be eligible to participate
in such life insurance, medical, dental, pension, profit sharing, and
retirement plans and other programs and arrangements as may be approved from
time to time by the Bank for the benefit of its employees.

(e)           VACATIONS AND LEAVE. The Executive shall be entitled to
accrue and take five (5) weeks of vacation each year at such times as shall be
consistent with the Bank’s vacation policies and, in the Bank’s judgment, with
the Bank’s vacation schedule for senior executives and other employees.
Vacation leave cannot be accumulated from year to year. The Executive also
shall be entitled to other paid sick, personal or other leave in accordance
with the Bank’s policy for senior executives, or otherwise as approved by the
Board. In addition to paid vacation and other leave, the Board may grant to the
Executive a leave or leaves of absence, with or without pay, at such time or
times and upon such terms and conditions as the Board in its discretion may
determine.

(f)            EXPENSE PAYMENTS AND REIMBURSEMENTS. Executive shall be
reimbursed for all reasonable out-of-pocket business expenses that Executive
shall incur in connection with his

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services under this
Agreement upon substantiation of such expenses in accordance with applicable
policies of the Bank.

(g)           AUTOMOBILE ALLOWANCE. During the term of this Agreement,
the Executive shall be entitled to the use of a Bank-owned automobile. The Bank
shall provide car insurance, maintenance and gas for said automobile. Executive
shall comply with all reasonable reporting and expense limitations on the use
of such automobile as may be established by the Bank from time to time, and the
Bank shall annually include on Executive’s Form W-2 any amount of income
attributable to Executive’s personal use of such automobile.

3.             TERMINATION AND TERMINATION PAY.

Executive’s employment under
this Agreement may be terminated in the following circumstances:

(a)           DEATH. Executive’s employment under this Agreement will
terminate upon Executive’s death during the term of this Agreement. Upon any
termination for death, Executive’s estate will receive (1) Executive’s base
salary through the effective date of termination, (2) payment of any bonuses or
incentive compensation with respect to the fiscal year ended prior to the
fiscal year in which the termination date occurs that was earned and unpaid,
and (3) reimbursement of all expenses for which Executive is entitled to be
reimbursed pursuant to Section 2 hereof, but for which he has not yet been
reimbursed (collectively, the “Accrued Compensation.”).

(b)           RETIREMENT. This Agreement will terminate upon Executive’s
retirement under the retirement benefit plan or plans in which Executive
participates pursuant to Section 2(c) of this Agreement or otherwise. Upon any
termination for retirement, Executive will receive all Accrued Compensation.

(c)           DISABILITY. The Board or Executive may terminate
Executive’s employment after having determined that Executive has a Disability.
For purposes of this Agreement, “Disability” shall have the same meaning given
to such term under the Bank’s Long-Term Disability plan as in effect from time
to time, or, if no such plan is then in effect, the meaning described in
Section 22(c)(3) of the Internal Revenue Code (the “Code”).

Upon any termination for
disability, Executive will no longer be obligated to perform services under
this Agreement. The Bank further will pay Executive, as Disability pay, an
amount equal to one-hundred percent (100%) of Executive’s bi-weekly rate of
base salary in effect as of the date of Executive’s termination of employment
due to Disability. The Bank will make Disability payments on a monthly basis
commencing on the first day of the month following the effective date of
Executive’s termination of employment due to Disability and ending on the
earlier of: (A) the date Executive returns to full-time employment in the same
capacity as he was employed prior to Executive’s termination for Disability;
(B) Executive’s death; (C) Executive’s attainment of age 65; or (D) the date
this Agreement would have expired had Executive’s employment not terminated by
reason of Disability. Such payments shall be reduced by the amount of any
short- or long-term disability benefits payable to Executive under any other
disability programs sponsored by the Bank or its affiliates. In addition,
during any period of Executive’s Disability, the Bank will continue to provide
Executive and his dependents, to the greatest extent possible, with continued
coverage under all benefit plans (including, without limitation, retirement
plans and medical, dental and life

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insurance plans) in which
Executive and/or his dependents participated prior to Executive’s Disability on
the same terms as if he remained actively employed by the Bank.

(d)           TERMINATION FOR CAUSE. The Board may,
by written notice to Executive, immediately terminate his employment at any time
for “Cause.” Upon termination for Cause, Executive shall receive all Accrued
Compensation. Termination for Cause shall mean termination because of, in the
good faith determination of the Board, Executive’s:

(1)           Act of dishonesty,
falsification of Bank or Holding Company documents, or other intentional
misrepresentation related to business matters of the Bank or the Holding
Company;

(2)           Incompetence;

(3)           Willful
misconduct or action in bad faith;

(4)           Breach
of fiduciary duty;

(5)           Failure to
substantially perform his stated duties and obligations to the Bank, including,
but not limited to, one or more acts of gross negligence;

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

(7)           Commission of any
tortious act, unlawful act or malfeasance that causes or reasonably could cause
harm to the Bank or the Holding Company;

(8)           Material breach of
any provision of this Agreement, or the written policies of the Bank and/or
Holding Company (including, but not limited to the Hampden Bank Code of Ethics
and Conflict of Interest Policy); and/or

(9)           Violation of the
Securities Act of 1933 or the Securities Exchange Act of 1934.

(e)           VOLUNTARY TERMINATION BY EXECUTIVE.
Executive may voluntarily terminate his employment during the term of this
Agreement upon at least sixty (60) days prior written notice to the Board. In
its discretion, the Board may accelerate Executive’s termination date. Upon
Executive’s voluntary termination, he will receive all Accrued Compensation as
of the date of his termination (as determined by the Board).

(f)            WITHOUT CAUSE OR WITH GOOD REASON.
The Board may, by written notice to Executive, immediately terminate his
employment at any time for a reason other than Cause (a termination “Without
Cause”) and Executive may, by written notice to the Board, immediately
terminate this Agreement at any time within ninety (90) days following an event
constituting “Good Reason,” as defined below (a termination “With Good
Reason”).

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In the event of
termination under this Section 3(f) (other than a termination without Cause or
for Good Reason within two (2) years of a Change in Control (defined in Section
4(a)), in which event Section 4(c) shall apply), the Bank shall pay Executive:

(1)           all
Accrued Compensation;

(2)           a severance payment
equal to his base salary for the remaining term of the Agreement, paid
periodically in accordance with the Bank’s customary payroll practices over the
remaining term of the Agreement; and

(3)           directly, or by
reimbursing the Executive for, the monthly premium for continuation coverage under
the Bank’s health and dental insurance plans, to the same extent that such
insurance is provided to persons currently employed by the Bank, provided that
the Executive makes a timely election for such continuation coverage under the
Consolidate Omnibus Budget Reconciliation Act of 1985 (“COBRA”). The
“qualifying event” under COBRA shall be deemed to have occurred on the
termination date. The Bank’s obligation under this paragraph shall end 18
months after the termination date or at such earlier date as the Executive
becomes eligible for comparable coverage under another employer’s group
coverage. The Executive agrees to notify the Bank promptly and in writing of
any new employment and to make full disclosure to the Bank of the health and
dental insurance coverage available to him through such new employment.

In addition,
Executive shall, for the remaining term of the Agreement, receive the benefits
he would have received during the remaining term of the Agreement under any
retirement programs (whether tax-qualified or non-qualified) in which Executive
participated prior to his termination (with the amount of the benefits
determined by reference to the benefits received by Executive or accrued on
Executive’s behalf under such programs during the twelve (12) months preceding
his termination) and continue to participate in any benefit plans of the Bank
that provide life insurance, upon terms no less favorable than the most
favorable terms provided to employees of the Bank during such period. In the
event that the Bank is unable to provide such coverage by reason of Executive
no longer being an employee, the Bank shall provide Executive with comparable
coverage on an individual policy basis.

“Good Reason”
shall exist if, without Executive’s express written consent, the Bank or the
Holding Company materially breaches any of its obligations under this
Agreement. Such a material breach shall be deemed to occur upon any of the
following:

(1)           A material reduction
in Executive’s responsibilities or authority in connection with his employment
with the Bank or the Holding Company;

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

(3)           Failure of Executive
to be nominated or renominated to the Board to the extent Executive is a Board
member prior to the Effective Date;

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(4)           A material reduction
in salary or benefits contrary to the terms of this Agreement, or, following a
Change in Control (as defined in Section 4 of this Agreement), any material
reduction in salary or benefits below the amounts Executive was entitled to
receive before the Change in Control;

(5)           A requirement that
Executive relocate his principal business office or his principal place of
residence outside of the area consisting of a thirty-five (35) mile radius from
the current main office of the Bank and any branch of the Bank, or the
assignment to Executive of duties that would reasonably require such a
relocation; or

(6)           Liquidation or
dissolution of the Bank or the Holding Company.

Notwithstanding
the foregoing, a reduction or elimination of Executive’s benefits under one or
more benefit plans maintained as part of a good faith, overall reduction or
elimination of such plans or benefits, applicable to all participants in a
manner that does not discriminate against Executive (except as such
discrimination may be necessary to comply with law), will not constitute an
event of Good Reason or a material breach of this Agreement, provided that
benefits of the same type or to the same general extent as those offered under
such plans before the reduction or elimination are not available to other
officers of the Bank or any affiliate under a plan or plans in or under which
Executive is not entitled to participate.

4.             PAYMENTS IN CONNECTION WITH A
CHANGE IN CONTROL.

(a)           For purposes of this Agreement, a
“Change in Control” shall mean any of the following events:

(1)           MERGER. The Bank or
the Holding Company merges into or consolidates with another entity, or merges
another corporation into the Bank or Holding 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 Bank or the Holding Company immediately before the merger
or consolidation;

(2)           ACQUISITION OF
SIGNIFICANT SHARE OWNERSHIP. There is filed, or is required to be filed, a
report on Schedule 13D or another form or schedule (other than Schedule 13G)
required under Sections 13(d) or 14(d) of the Securities Exchange Act of 1934,
as amended, 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 Bank or the Holding Company’s voting securities, but this clause (ii) shall
not apply to beneficial ownership of Bank or Holding Company voting shares held
in a fiduciary capacity by an entity of which the Bank or the Holding Company
directly or indirectly beneficially owns 50% or more of its outstanding voting
securities.

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(3)           CHANGE IN BOARD
COMPOSITION. During any period of two consecutive years, individuals who
constitute the Bank’s or the Holding 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 Bank’s or the Holding 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
members) 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

(4)           SALE OF ASSETS. The
Bank or the Holding Company sells to a third party all or substantially all of
its assets.

(5)           TENDER OFFER. A
tender offer is made for 25% or more of the voting securities of the Bank or
the Holding Company.

(b)           In the event that, upon a change in
ownership or control within the meaning of Section 409A(a)(2)(A)(v) of the
Code, Executive is offered employment with the Bank or its successor that is
comparable in terms of compensation and responsibilities, and Executive stays
for six (6) months after the change in ownership or control is completed, Executive
shall receive a lump sum payment in the amount of three (3) months base salary.

(c)           TERMINATION. If within the period
ending two (2) years after a Change in Control, (i) the Bank or the Holding
Company terminates Executive’s employment Without Cause (defined in Section
3(d) above), or (ii) Executive voluntarily terminates his employment With Good
Reason (defined in Section 3(f) above), the Bank will, within ten (10) calendar
days of the termination of Executive’s employment, pay Executive:

(1)           all Accrued
Compensation;

(2)           one lump-sum cash
payment equal to three (3) times Executive’s average “Annual Compensation” over
the five (5) most recently completed calendar years, ending with the year
immediately preceding the effective date of the Change in Control. In
determining Executive’s average “Annual Compensation”, “Annual Compensation”
will include base salary and any other taxable income, including, but not
limited to, amounts related to the granting, vesting or exercise of restricted
stock or stock option awards, commissions, bonuses, retirement benefits,
director or committee fees and fringe benefits paid or accrued for Executive’s
benefit. Annual compensation will also include profit sharing, Employee stock
ownership plan and other retirement contributions or benefits, including to any
tax-qualified plan or arrangement (whether or not taxable) made or accrued on
behalf of Executive for such year; and

(3)           directly, or by
reimbursing the Executive for, the monthly premium for continuation coverage
under the Bank’s health and dental insurance plans, to the same extent that
such insurance is provided to persons currently

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employed by the Bank, provided that the Executive makes a timely
election for such continuation coverage under the Consolidate Omnibus Budget
Reconciliation Act of 1985 (“COBRA”). The “qualifying event” under COBRA shall
be deemed to have occurred on the termination date. The Bank’s obligation under
this paragraph shall end 18 months after the termination date or at such
earlier date as the Executive becomes eligible for comparable coverage under
another employer’s group coverage. The Executive agrees to notify the Bank
promptly and in writing of any new employment and to make full disclosure to
the Bank of the health and dental insurance coverage available to him through
such new employment.

In addition, in such event,
the Executive shall, for a thirty-six (36) month period following his
termination of employment, receive the benefits he would have received over
such period under any retirement programs (whether tax-qualified or
nonqualified) in which the Executive participated prior to his termination
(with the amount of the benefits determined by reference to the benefits
received by the Executive or accrued on his behalf under such programs during
the twelve (12) months preceding the Change in Control) and continue to
participate in any benefit plans of the Bank that provide life insurance upon
terms no less favorable than the most favorable terms provided to Executives of
the Bank during such period. In the event that the Bank is unable to provide
such coverage by reason of the Executive no longer being an Executive, the Bank
shall provide the Executive with comparable coverage on an individual policy.

(d)           The cash payments made under Section
4(c) shall be made in lieu of any payments also required under Section 3(f) of
this Agreement because of Executive’s termination of employment.

5.             CONFIDENTIALITY, NON-COMPETITION
AND NON-SOLICITATION.

(a)           CONFIDENTIALITY.

(1)           “Confidential
Information” is information however delivered, disclosed, or discovered during
the term of Executive’s employment, which Executive has, or in the exercise of
ordinary prudence should have, reason to believe is confidential or which the
Bank designates as confidential including, but not limited to:

(i)            BANK INFORMATION: Bank or Holding Company proprietary
information, technical data, trade secrets or know-how, including, but not
limited to: research, processes, pricing strategies, communication strategies,
sales strategies, sales literature, sales contracts, product plans, products,
inventions, methods, services, computer codes or instructions, software and
software documentation, equipment, costs, customer lists, business studies,
business procedures, finances and other business information disclosed to
Executive by the Bank or the Holding Company, either directly or indirectly in
writing, orally or by drawings or observation of parts or equipment and such
other

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documentation and
information as is necessary in the conduct of the business of the Bank or the
Holding Company; and

(ii)           THIRD PARTY INFORMATION: confidential or proprietary
information received by the Bank or the Holding Company from third parties.

(2)           The
Bank’s failure to mark any of the Confidential Information as confidential or
proprietary will not affect its status as Confidential Information.

(3)           Executive
also agrees that the terms, conditions and subject matter of this Agreement are
considered Confidential Information.

(4)           Confidential
Information does not include information that has ceased to be confidential by
reason of any of the following: (i) was in Executive’s possession prior to the
date of his initial employment with the Bank, provided that such information is
not known by Executive to be subject to another confidentiality agreement with,
or other obligation of secrecy to, the Bank, the Holding Company, or another
party; (ii) is generally available to the public and became generally available
to the public other than as a result of a disclosure in violation of this
Agreement; (iii) became available to Executive on a non-confidential basis from
a third party, provided that such third party is not known by Executive to be
bound by a confidentiality agreement with, or other obligation of secrecy to,
the Bank, the Holding Company, or another party or is otherwise prohibited from
providing such information to Executive by a contractual, legal or fiduciary
obligation; or (iv) Executive is required to disclose pursuant to applicable
law or regulation (as to which information, Executive will provide the Bank
with prior notice of such requirement and, if practicable, an opportunity to
obtain an appropriate protective order).

(5)           Executive
shall not, either during or after the termination of his or her employment with
the Bank, communicate or disclose to any third party the substance or content
of any Confidential Information (defined above), or use such Confidential
Information for any purpose other than the performance of Executive’s
obligations hereunder. Executive acknowledges and agrees that any Confidential
Information obtained by Executive during the performance of his or her
employment concerning the business or affairs of the Bank, or any subsidiary,
affiliate or joint venture of the Bank is the property of the Bank, or such
subsidiary, affiliate or joint venture of the Bank, as the case may be.

(6)           Executive
agrees to return all Confidential Information, including all copies and
versions of such Confidential Information (including, but not limited to,
information maintained on paper, disk, CD-ROM, network server, or any other
retention device whatsoever) and other property of the Bank, to

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the Bank within two (2) business days of his
separation from the Bank (regardless of the reason for the separation).

(7)           RECOGNITION
OF GOOD WILL. Executive further recognizes and acknowledges that in the course
of employment he is and will be introduced to customers and others with
important relationships to the Bank. Executive acknowledges and agrees that any
and all “goodwill” associated with any existing or prospective customer,
account or business partner belongs exclusively to the Bank including, but not
limited to, any goodwill created as a result of direct or indirect contacts or
relationships between Executive and any existing or prospective customers,
accounts, business partners and other key relationships of the Bank.

(b)           NON-COMPETITION. In view of the
covenants above, and as a material inducement to the Bank to enter into this
Agreement and to pay to Executive the compensation stated in Section 2,
Executive agrees that during his employment and for a period of one (1) year
thereafter (the “Non-Competition Period”), he shall not, for himself or on
behalf of any other person or entity, directly or indirectly own, manage,
control, participate in, consult with, render services for or in any manner
engage in or have a financial interest in any business that competes with the
depository, lending, or other business activities of the Bank in any city, town
or county in which Executive’s normal business office is located, or the Bank
has an office or has filed an application for regulatory approval to establish
an office, determined as of the effective date of such termination, except as
agreed to pursuant to a resolution duly adopted by the Bank.

Executive
further agrees that during the Non-Competition Period, he will not serve as an
officer, director or employee of any bank holding company, bank, savings
association, savings and loan holding company, mortgage company or other
financial institution that offers products or services competing with those
offered by the Bank or its subsidiaries or affiliates from any office within
thirty-five (35) miles from the main office of the Bank or any branch of the
Bank.

The
foregoing shall not prohibit Executive from being a passive owner of not more
than 5% of the outstanding stock of a corporation which is publicly traded, so
long as Executive has no active participation in the business of the
corporation.

(c)           NON-SOLICITATION. During the
Non-Competition Period Executive shall not, either individually or on behalf of
or through any third party, directly or indirectly, engage in the following
activities:

(1)           CUSTOMER,
CLIENT AND VENDOR NON-SOLICITATION. Solicit, divert, appropriate or take away,
or attempt to solicit, divert, appropriate or take away, the business or
patronage of any of the clients, customers or vendors of the Bank that were
clients, customers or vendors of the Bank while Executive was employed by the
Bank and that were serviced by Executive, or prospective clients, customers or
vendors with which Executive had written or oral communications while Executive
was employed by the Bank.

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(2)           EMPLOYEE
NON-SOLICITATION. Hire, retain, recruit, entice, induce, solicit or encourage
any employee or consultant to terminate their employment with, or otherwise
cease their relationship with, the Bank or its parent, subsidiaries or
affiliates. This section 5(c)(2) shall prohibit the aforesaid actions by
Executive with respect to any person both while such person is a current
employee or consultant of the Bank or such related entities, and for the ninety
(90) day period after such person’s employment or consultancy with the Bank
terminates.

The
terms of this Section 5 of the Agreement are in addition to, and not in lieu
of, any other contractual, statutory or common law obligations that Executive
may have relating to the protection of the Bank’s Confidential Information or
its property. The terms of this section shall survive indefinitely Executive’s
employment with the Bank, provided that the Confidential Information of the
Bank remains confidential and is not a matter of public knowledge.

6.             RETURN OF PROPERTY. Within two (2)
business days of the termination of Executive’s employment hereunder for any
reason or for no reason and at any time requested by the Bank, Executive will
deliver to the Bank any property of the Bank that may be in his possession,
including, but not limited to, memoranda, notes, records, reports or other
documents or photocopies of the same.

7.             POST-TERMINATION OBLIGATIONS. Any
and all payments, benefits and vested rights due to Executive under this
Agreement are subject to his compliance with Sections 1(c), 5 and 6 of this
Agreement. Upon a good faith finding by the Board that Executive breached
Sections 1(c), 5 or 6 of this Agreement, the Bank shall be excused from making
any and all payments under this Agreement and Executive shall return to the
Bank all previous payments made to him under this Agreement.

8.             INDEMNIFICATION AND LIABILITY
INSURANCE. Subject to and limited by Section 22 of this Agreement, the Bank
shall provide the following:

(a)           INDEMNIFICATION. The Bank agrees to
indemnify Executive (and his heirs, executors, and administrators), and to
advance expenses related to this indemnification, to the fullest extent
permitted under applicable law and regulations against any and all expenses and
liabilities that Executive reasonably incurs in connection with or arising out
of any action, suit, or proceeding in which he may be involved by reason of his
service as a director or Executive of the Bank or any of its subsidiaries or
affiliates (whether or not he continues to be a director or Executive at the
time of incurring any such expenses or liabilities). Covered expenses and
liabilities include, but are not limited to, judgments, court costs, and
attorneys’ fees and the costs of reasonable settlements, subject to Board
approval, if the action is brought against Executive in his capacity as an
Executive or director of the Bank or any of its subsidiaries or affiliates.
Indemnification for expenses will not extend to matters related to Executive’s
termination for Cause. Notwithstanding anything in this Section 8(a) to the
contrary, the Bank will not be required to provide indemnification prohibited
by applicable law or regulation including, but not limited to, Section 409A of
the Code. The obligations of this Section 8 shall survive the term of this
Agreement by a period of six (6) years.

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(b)           INSURANCE. During the period for
which the Bank must indemnify Executive under this Section, the Bank will
provide Executive (and his heirs, executors, and administrators) with coverage
under a directors’ and officers’ liability policy, at the Bank’s expense, that
is at least equivalent to the coverage provided to directors and senior
executives of the Bank and its subsidiaries.

9.             LIMITATION ON PAYMENTS. In the
event that the severance and other benefits provided for in this Agreement or
otherwise payable to the Executive (i) constitute “parachute payments” within
the meaning of Section 280G of the Code and (ii) but for this Section 9, would
be subject to the excise tax imposed by Section 4999 of the Code, then the
Executive’s severance benefits shall be either:

(a)           delivered in full, or

 

(b)           delivered as to such
lesser extent which would result in no portion of such severance benefits being
subject to excise tax under Section 4999 of the Code,

whichever of the foregoing
amounts, taking into account the applicable federal, state and local income
taxes and the excise tax imposed by Section 4999, results in the receipt by the
Executive on an after-tax basis, of the greatest amount of severance benefits,
notwithstanding that all or some portion of such severance benefits may be taxable
under Section 4999 of the Code. Unless the Bank and the Executive otherwise
agree in writing, any determination required under this Section 9 shall be made
in writing by the Bank’s independent public accountants immediately prior to
Change in Control (the “Accountants”), whose determination shall be conclusive
and binding upon the Executive and the Bank for all purposes. For purposes of
making the calculations required by this Section 1, the accountants may make
reasonable assumptions and approximations concerning applicable taxes and may
rely on reasonable, good faith interpretations concerning the application of
Sections 280G and 4999 of the Code. The Bank and the Executive shall furnish to
the Accountants such information and documents as the Accountants may
reasonably request in order to make a determination under this Section. The
Bank shall bear all costs the Accountants may reasonably incur in connection
with any calculations contemplated by this Section 9.

10.           DISCLOSURE TO FUTURE AND PROSPECTIVE EMPLOYERS. Executive
agrees that the Bank may notify any of his future or prospective employers or
other third parties of this Agreement and may provide a copy of this Agreement
to such parties without Executive’s further consent.

11.           INJUNCTIVE RELIEF. The parties hereto, recognizing that
irreparable injury will result to the Bank, its business and property in the
event of Executive’s breach or threatened breach of Sections 1(c), 5, and 6 of
this Agreement, agree that in the event of any such breach, the Bank, will be
entitled, in addition to any other remedies and damages available, to an
injunction to restrain Executive’s violation as well as any violations of his
partners, agents, servants, Executives and all persons acting for or under
Executive’s direction. Nothing herein will be construed as prohibiting the Bank
from pursuing any other remedies available to the Bank for such breach or
threatened breach, including the recovery of damages from Executive.

 12
 

 

12.           SUCCESSORS AND ASSIGNS.

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

(b)           SUCCESSOR TO THE EXECUTIVE. Since the Bank is contracting
for the unique and personal skills of the Executive, neither this Agreement nor
any right or interest hereunder will be assignable or transferable by the
Executive, his beneficiaries or legal representatives, except by will or by the
laws of descent and distribution. This Agreement will inure to the benefit of
and be enforceable by the Executive’s legal personal representative.

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

14.           NOTICES. All notices, requests, demands and other
communications in connection with this Agreement shall be made in writing and
shall be deemed to have been given when delivered by hand or 48 hours after
mailing at any general or branch United States Post Office, by registered or
certified mail, postage prepaid, addressed to the Bank at its principal
business offices and to Executive at his home address as maintained in the
records of the Bank.

15.           NO PLAN CREATED BY THIS AGREEMENT. Executive and the Bank
expressly declare and agree that this Agreement was negotiated among them and
that no provision or provisions of this Agreement are intended to, or shall be
deemed to, create any plan for purposes of the Executive Retirement Income
Security Act of 1974 (“ERISA”) or any other law or regulation, and each party
expressly waives any right to assert the contrary. Any assertion in any
judicial or administrative filing, hearing, or process that an ERISA plan was
created by this Agreement shall be deemed a material breach of this Agreement
by the party making the assertion.

16.           AMENDMENTS AND WAIVER. No amendments or additions to this
Agreement shall be binding unless made in writing and signed by all of the
parties, except as herein otherwise specifically provided. No waiver by either
party of any breach of, or of compliance with, any condition or provision of
this Agreement by the other party shall be considered a waiver of any other
condition or provision or of the same condition or provision at another time.
Further, the Bank’s waiver of its right to enforce similar conditions or
provisions in another employee’s agreement (employment or other) shall not
operate as a waiver of its right to enforce any of the conditions or provisions
in this Agreement.

 13
 

 

17.           CHOICE OF LAW; ENFORCEABILITY; WAIVER OF JURY TRIAL

(a)           THE LAW OF MASSACHUSETTS APPLIES TO THIS AGREEMENT. This
Agreement and all transactions contemplated by this Agreement shall be governed
by and construed and enforced in accordance with the internal laws of the
Commonwealth of Massachusetts, without regard to principles of conflicts of
law.

(b)           ANY DISPUTE REGARDING THIS AGREEMENT WILL TAKE PLACE IN
MASSACHUSETTS. The Parties agree that this Agreement shall be enforced by the
Business Litigation Session of the Massachusetts Superior Court located in
Suffolk County, which retains exclusive jurisdiction and venue for any actions
or proceedings, demand, claim or counterclaim relating to, or arising under,
the terms and provisions of this Agreement, or to its breach. The Parties
further acknowledge that material witnesses and documents would be located in
Massachusetts.

18.           SEVERABILITY. If a court of competent jurisdiction
determines that any portion of this Agreement is illegal, invalid or
unenforceable, then that portion shall be considered to be removed from the
Agreement and it shall not affect the legality, validity or enforceability of
the remainder of the Agreement and the remainder of the Agreement shall
continue in full force and effect. Similarly, if the scope of any restriction
or covenant contained herein should be or become too broad or extensive to
permit enforcement thereof to its full extent, then the court is specifically
authorized by the parties to enforce any such restriction or covenant to the
maximum extent permitted by law, and Executive hereby consents and agrees that
the scope of any such restriction or covenant may be modified accordingly in
any judicial proceeding brought to enforce such restriction or covenant.

19.           HEADINGS. Headings contained in this Agreement are for
convenience of reference only.

20.           ENTIRE AGREEMENT. This Agreement, together with any
modifications subsequently agreed to in writing by the parties, along with the
plans and any written agreements entered into by the parties pursuant to
Sections 2(c) and (d), shall constitute the entire agreement between the
parties, and shall supersede all prior agreements, understandings and
arrangements, oral or written, between the parties.

21.           SOURCE OF PAYMENTS. All payments provided in this
Agreement shall be paid in from the general funds of the Bank. In the event,
however, that the Bank is unable to make such payments to the Executive, such
amounts and benefits shall be paid or provided by the Holding Company.

22.           MISCELLANEOUS. Any payment made pursuant to this
Agreement, or otherwise, is subject to and conditioned upon their compliance
with 12 U.S.C. Section 1828(k) and FDIC regulation 12 C.F.R. Part 359, Golden
Parachute and Indemnification Payments.

23.           REPRESENTATIONS. Executive hereby represents and warrants
to the Bank that he understands this Agreement, that he enters into this
Agreement voluntarily and that his employment under this Agreement will not
conflict with any legal duty owed by him to any other party, or with any
agreement to which Executive is a party or by which he is bound,

 14
 

 

including, without
limitation, any non-competition or non-solicitation provision contained in any
such agreement. Executive will indemnify and hold harmless the Bank and its
officers, directors, security holders, partners, members, Executives, agents
and representatives against loss, damage, liability or expense arising from any
claim based upon circumstances alleged to be inconsistent with such
representation and warranty.

[REMAINDER OF THIS PAGE
INTENTIONALLY LEFT BLANK]

 15

 

SIGNATURES

IN WITNESS WHEREOF, the
parties hereto have executed this Agreement on January 16, 2007.

	
  ATTEST:

  	
   

  	
  HAMPDEN BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Donald Dupré

  	
   

  	
  By:

  	
  /s/ Robert A. Massey

  	
   

  
	
  Corporate
  Secretary

  	
   

  	
  For the Entire
  Board of Directors

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
  HAMPDEN BANCORP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Donald Dupré

  	
   

  	
  By:

  	
  /s/ Robert A. Massey

  	
   

  
	
  Corporate
  Secretary

  	
   

  	
  For the Entire
  Board of Directors

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  	
   

  
	
  /s/ Donald Dupré

  	
   

  	
  /s/ Thomas R. Burton

  	
   

  
	
  Corporate
  Secretary

  	
   

  	
  Thomas R. Burton

  

 

 16Exhibit
10.5.2

EMPLOYMENT
AGREEMENT

THIS AGREEMENT (the “Agreement”)
made this 16th day of January, 2007, by and between HAMPDEN
BANK, a Massachusetts-chartered savings bank, with its principal administrative
office at 19 Harrison Avenue, Springfield, MA 01102 (the “Bank”), HAMPDEN
BANCORP, INC., a corporation organized under the laws of the State of Delaware,
the holding company for the Bank (the “Holding Company”), and GLENN S. WELCH
(the “Executive”).

WHEREAS, Executive serves in
a position of substantial responsibility; and

WHEREAS, the Bank wishes to
assure Executive’s services for the term of this Agreement; and

WHEREAS, Executive is
willing to serve in the employ of the Bank during the term of this Agreement.

NOW, THEREFORE, in
consideration of the mutual promises, terms, provisions, and conditions
contained in this Agreement, the parties hereby agree as follows:

1.             EMPLOYMENT.

(a)           POSITION. Executive is employed as the Executive Vice
President of the Bank. Executive will perform all duties and shall have all
powers commonly incident to the office of Executive Vice President of the Bank
or which, consistent with this office, are delegated to him by the Board of
Directors of the Bank (the “Board”). During the term of this Agreement,
Executive also agrees to serve, if elected, as an officer and/or director of
any subsidiary or affiliate of the Bank or the Holding Company and to carry out
the duties and responsibilities reasonably appropriate to those offices.

(b)           TERM. The period of Executive’s employment under this
Agreement shall be deemed to have commenced as of the date written above and
shall continue for a period of thirty-six (36) full calendar months (“Initial
Term”), or until the employment relationship is terminated pursuant to Sections
3 or 4 hereof. Upon the expiration of the Initial Term, this Agreement will be
renewed automatically for successive thirty-six-month periods (“Renewal Terms”),
unless the Board or Executive elects not to extend the term of the Agreement by
giving written notice to the other party in accordance with the terms of this
Agreement. Executive’s employment shall continue during such Renewal Terms
until the employment relationship is terminated pursuant to Sections 3 or 4
hereof.

(c)           DEVOTION TO DUTIES AND LOYALTY. While Executive is
employed hereunder, he will: (i) use his best efforts, skill and abilities to
perform faithfully all duties assigned to him pursuant to this Agreement, (ii)
devote his full business time and energies to the business and the affairs of
the Bank; (iii) not render any similar services for his own account or any
other person or entity without the prior written consent of the Bank; and (iv)
not undertake any other full-time employment from any person or entity without
prior written consent of the Bank. However, from time to time, Executive may,
with the permission of the Board, serve on the boards of directors of, and hold
any other offices or positions in, companies or organizations that will not
present any conflict of interest with the Bank or any of its

 1
 

 

subsidiaries or affiliates,
unfavorably affect the performance of the Executive’s duties pursuant to this
Agreement, or violate any applicable statute or regulation.

2.             COMPENSATION.

(a)           BASE SALARY. The Bank agrees to pay Executive a base
salary at the annual rate of $160,000 per year (less applicable withholding
taxes), payable in accordance with the Bank’s customary payroll practices.

(1)           The Board shall review
annually the rate of the Executive’s base salary based upon factors they deem
relevant, and may maintain or increase his base salary, in its discretion. In
addition, the Board may decrease the base salary in the event that the Board
determines that financial exigencies require such decrease, provided that the
compensation of all executives of the Bank is also reduced at the same time in
a substantially commensurate manner.

(2)           In the absence of
action by the Board, the Executive shall continue to receive a base salary at
the annual rate specified on the Effective Date or, if another rate has been
established under the provisions of this Section 2, the rate last properly
established by action of the Board under the provisions of this Section 2.

(b)           BONUSES. Executive shall be eligible to participate in
discretionary bonuses or other discretionary incentive compensation programs
that the Bank may award from time to time to Executives pursuant to bonus plans
or otherwise.

(c)           STOCK-BASED COMPENSATION. The Executive will be eligible
to participate in the Bank’s Employee Stock Ownership Plan and to be considered
by the Board for grants or awards of stock options or other stock-based
compensation under any stock-based incentive plans that the Bank elects to
implement. All such grants or awards shall be governed by the relevant plan
documents and requirements and shall be evidenced by the Bank’s then-standard
form of stock option, restricted stock or other applicable agreement.

(d)           BENEFIT PLANS. Executive shall be eligible to participate
in such life insurance, medical, dental, pension, profit sharing, and
retirement plans and other programs and arrangements as may be approved from
time to time by the Bank for the benefit of its employees.

(e)           VACATIONS AND LEAVE. The Executive shall be entitled to
accrue and take four (4) weeks of vacation each year at such times as shall be
consistent with the Bank’s vacation policies and, in the Bank’s judgment, with
the Bank’s vacation schedule for senior executives and other employees.
Vacation leave cannot be accumulated from year to year. The Executive also
shall be entitled to other paid sick, personal or other leave in accordance
with the Bank’s policy for senior executives, or otherwise as approved by the
Board. In addition to paid vacation and other leave, the Board may grant to the
Executive a leave or leaves of absence, with or without pay, at such time or
times and upon such terms and conditions as the Board in its discretion may
determine.

(f)            EXPENSE PAYMENTS AND REIMBURSEMENTS. Executive shall be
reimbursed for all reasonable out-of-pocket business expenses that Executive
shall incur in connection with his

 2
 

 

services under this
Agreement upon substantiation of such expenses in accordance with applicable
policies of the Bank.

(g)           AUTOMOBILE ALLOWANCE. During the term of this Agreement,
the Executive shall receive an automobile allowance of $500 per month.

3.             TERMINATION AND TERMINATION PAY.

Executive’s employment under
this Agreement may be terminated in the following circumstances:

(a)           DEATH. Executive’s employment under this Agreement will
terminate upon Executive’s death during the term of this Agreement. Upon any
termination for death, Executive’s estate will receive (1) Executive’s base
salary through the effective date of termination, (2) payment of any bonuses or
incentive compensation with respect to the fiscal year ended prior to the
fiscal year in which the termination date occurs that was earned and unpaid,
and (3) reimbursement of all expenses for which Executive is entitled to be
reimbursed pursuant to Section 2 hereof, but for which he has not yet been
reimbursed (collectively, the “Accrued Compensation.”).

(b)           RETIREMENT. This Agreement will terminate upon Executive’s
retirement under the retirement benefit plan or plans in which Executive
participates pursuant to Section 2(c) of this Agreement or otherwise. Upon any
termination for retirement, Executive will receive all Accrued Compensation.

(c)           DISABILITY. The Board or Executive may terminate
Executive’s employment after having determined that Executive has a Disability.
For purposes of this Agreement, “Disability” shall have the same meaning given
to such term under the Bank’s Long-Term Disability plan as in effect from time
to time, or, if no such plan is then in effect, the meaning described in
Section 22(c)(3) of the Internal Revenue Code (the “Code”).

Upon any termination for
disability, Executive will no longer be obligated to perform services under
this Agreement. If the Bank terminates Executive’s employment as a result of
the Executive’s Disability, then Executive shall not be entitled to receive
severance or other benefits except for those as may then be established under
the Bank’s then existing severance and benefits plans.

(d)           TERMINATION FOR CAUSE. The Board may, by written notice to
Executive, immediately terminate his employment at any time for “Cause.” Upon
termination for Cause, Executive shall receive all Accrued Compensation.
Termination for Cause shall mean termination because of, in the good faith
determination of the Board, Executive’s:

(1)           Act of dishonesty,
falsification of Bank or Holding Company documents, or other intentional
misrepresentation related to business matters of the Bank or the Holding
Company;

(2)           Incompetence;

(3)           Willful misconduct or
action in bad faith;

 3
 

 

(4)           Breach of fiduciary
duty;

(5)           Failure to substantially
perform his stated duties and obligations to the Bank, including, but not
limited to, one or more acts of gross negligence;

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

(7)           Commission of any
tortious act, unlawful act or malfeasance that causes or reasonably could cause
harm to the Bank or the Holding Company;

(8)           Material breach of any
provision of this Agreement, or the written policies of the Bank and/or Holding
Company (including, but not limited to the Hampden Bank Code of Ethics and
Conflict of Interest Policy); and/or

(9)           Violation of the
Securities Act of 1933 or the Securities Exchange Act of 1934.

(e)           VOLUNTARY TERMINATION BY EXECUTIVE. Executive may
voluntarily terminate his employment during the term of this Agreement upon at
least sixty (60) days prior written notice to the Board. In its discretion, the
Board may accelerate Executive’s termination date. Upon Executive’s voluntary
termination, he will receive all Accrued Compensation as of the date of his
termination (as determined by the Board).

(f)            WITHOUT CAUSE OR WITH GOOD REASON. The Board may, by
written notice to Executive, immediately terminate his employment at any time
for a reason other than Cause (a termination “Without Cause”) and Executive
may, by written notice to the Board, immediately terminate this Agreement at
any time within ninety (90) days following an event constituting “Good Reason,”
as defined below (a termination “With Good Reason”).

In the event of termination
under this Section 3(f) (other than a termination without Cause or for Good
Reason within two (2) years of a Change in Control (defined in Section 4(a)),
in which event Section 4(c) shall apply), the Bank shall pay Executive:

(1)           all Accrued
Compensation;

(2)           a severance payment
equal to his base salary for the remaining term of the Agreement, paid
periodically in accordance with the Bank’s customary payroll practices over the
remaining term of the Agreement; and

(3)           directly, or by
reimbursing the Executive for, the monthly premium for continuation coverage under
the Bank’s health and dental insurance plans, to the same extent that such
insurance is provided to persons currently employed by the Bank, provided that
the Executive makes a timely election for such continuation coverage under the
Consolidate Omnibus Budget Reconciliation Act of 1985 (“COBRA”). The
“qualifying event” under

 4
 

 

COBRA shall be deemed to have occurred on the termination date. The
Bank’s obligation under this paragraph shall end 18 months after the
termination date or at such earlier date as the Executive becomes eligible for
comparable coverage under another employer’s group coverage. The Executive
agrees to notify the Bank promptly and in writing of any new employment and to
make full disclosure to the Bank of the health and dental insurance coverage
available to him through such new employment.

In addition, Executive
shall, for the remaining term of the Agreement, receive the benefits he would
have received during the remaining term of the Agreement under any retirement
programs (whether tax-qualified or non-qualified) in which Executive
participated prior to his termination (with the amount of the benefits
determined by reference to the benefits received by Executive or accrued on
Executive’s behalf under such programs during the twelve (12) months preceding
his termination) and continue to participate in any benefit plans of the Bank
that provide life insurance, upon terms no less favorable than the most
favorable terms provided to employees of the Bank during such period. In the
event that the Bank is unable to provide such coverage by reason of Executive
no longer being an employee, the Bank shall provide Executive with comparable
coverage on an individual policy basis.

“Good Reason” shall exist
if, without Executive’s express written consent, the Bank or the Holding
Company materially breaches any of its obligations under this Agreement. Such a
material breach shall be deemed to occur upon any of the following:

(1)           A material reduction
in Executive’s responsibilities or authority in connection with his employment
with the Bank or the Holding Company;

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

(3)           Failure of Executive
to be nominated or renominated to the Board to the extent Executive is a Board
member prior to the Effective Date;

(4)           A material reduction
in salary or benefits contrary to the terms of this Agreement, or, following a
Change in Control (as defined in Section 4 of this Agreement), any material
reduction in salary or benefits below the amounts Executive was entitled to
receive before the Change in Control;

(5)           A requirement that
Executive relocate his principal business office or his principal place of
residence outside of the area consisting of a thirty-five (35) mile radius from
the current main office of the Bank and any branch of the Bank, or the
assignment to Executive of duties that would reasonably require such a
relocation; or

(6)           Liquidation or
dissolution of the Bank or the Holding Company.

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

 5
 

 

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

4.             PAYMENTS IN CONNECTION WITH A CHANGE IN CONTROL.

(a)           For purposes of this Agreement, a “Change in Control”
shall mean any of the following events:

(1)           MERGER. The Bank or
the Holding Company merges into or consolidates with another entity, or merges
another corporation into the Bank or Holding 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 Bank or the Holding Company immediately before the merger
or consolidation;

(2)           ACQUISITION OF
SIGNIFICANT SHARE OWNERSHIP. There is filed, or is required to be filed, a
report on Schedule 13D or another form or schedule (other than Schedule 13G)
required under Sections 13(d) or 14(d) of the Securities Exchange Act of 1934,
as amended, 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 Bank or the Holding Company’s voting securities, but this clause (ii) shall
not apply to beneficial ownership of Bank or Holding Company voting shares held
in a fiduciary capacity by an entity of which the Bank or the Holding Company
directly or indirectly beneficially owns 50% or more of its outstanding voting
securities.

(3)           CHANGE IN BOARD
COMPOSITION. During any period of two consecutive years, individuals who
constitute the Bank’s or the Holding 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 Bank’s or the Holding 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
members) 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

(4)           SALE OF ASSETS. The
Bank or the Holding Company sells to a third party all or substantially all of
its assets.

(5)           TENDER OFFER. A tender
offer is made for 25% or more of the voting securities of the Bank or the
Holding Company.

 6
 

 

(b)           In the event that, upon a change in ownership or control
within the meaning of Section 409A(a)(2)(A)(v) of the Code, Executive is
offered employment with the Bank or its successor that is comparable in terms
of compensation and responsibilities, and Executive stays for six (6) months
after the change in ownership or control is completed, Executive shall receive
a lump sum payment in the amount of three (3) months base salary.

(c)           TERMINATION. If within the period ending two (2) years
after a Change in Control, (i) the Bank or the Holding Company terminates
Executive’s employment Without Cause (defined in Section 3(d) above), or (ii)
Executive voluntarily terminates his employment With Good Reason (defined in
Section 3(f) above), the Bank will, within ten (10) calendar days of the
termination of Executive’s employment, pay Executive:

(1)           all Accrued
Compensation;

(2)           one lump-sum cash
payment equal to two (2) times Executive’s average “Annual Compensation” over
the five (5) most recently completed calendar years, ending with the year
immediately preceding the effective date of the Change in Control. In
determining Executive’s average “Annual Compensation”, “Annual Compensation”
will include base salary and any other taxable income, including, but not
limited to, amounts related to the granting, vesting or exercise of restricted
stock or stock option awards, commissions, bonuses, retirement benefits,
director or committee fees and fringe benefits paid or accrued for Executive’s
benefit. Annual compensation will also include profit sharing, Employee stock
ownership plan and other retirement contributions or benefits, including to any
tax-qualified plan or arrangement (whether or not taxable) made or accrued on
behalf of Executive for such year; and

(3)           directly, or by
reimbursing the Executive for, the monthly premium for continuation coverage
under the Bank’s health and dental insurance plans, to the same extent that
such insurance is provided to persons currently employed by the Bank, provided
that the Executive makes a timely election for such continuation coverage under
the Consolidate Omnibus Budget Reconciliation Act of 1985 (“COBRA”). The
“qualifying event” under COBRA shall be deemed to have occurred on the
termination date. The Bank’s obligation under this paragraph shall end 18
months after the termination date or at such earlier date as the Executive
becomes eligible for comparable coverage under another employer’s group
coverage. The Executive agrees to notify the Bank promptly and in writing of
any new employment and to make full disclosure to the Bank of the health and
dental insurance coverage available to him through such new employment.

In addition, in such event,
the Executive shall, for a twenty-four (24) month period following his
termination of employment, receive the benefits he would have received over
such period under any retirement programs (whether tax-qualified or
nonqualified) in which the Executive participated prior to his termination
(with the amount of the benefits determined by reference to the benefits
received by the Executive or accrued on his behalf under such programs during
the twelve (12) months preceding the Change in Control) and

 7
 

 

continue to participate in
any benefit plans of the Bank that provide life insurance upon terms no less
favorable than the most favorable terms provided to Executives of the Bank
during such period. In the event that the Bank is unable to provide such
coverage by reason of the Executive no longer being an Executive, the Bank
shall provide the Executive with comparable coverage on an individual policy.

(d)           The cash payments made under Section 4(c) shall be made in
lieu of any payments also required under Section 3(f) of this Agreement because
of Executive’s termination of employment.

5.             CONFIDENTIALITY, NON-COMPETITION AND NON-SOLICITATION.

(a)           CONFIDENTIALITY.

(1)           “Confidential
Information” is information however delivered, disclosed, or discovered during
the term of Executive’s employment, which Executive has, or in the exercise of
ordinary prudence should have, reason to believe is confidential or which the
Bank designates as confidential including, but not limited to:

(i)            BANK INFORMATION:
Bank or Holding Company proprietary information, technical data, trade secrets
or know-how, including, but not limited to: research, processes, pricing
strategies, communication strategies, sales strategies, sales literature, sales
contracts, product plans, products, inventions, methods, services, computer
codes or instructions, software and software documentation, equipment, costs,
customer lists, business studies, business procedures, finances and other
business information disclosed to Executive by the Bank or the Holding Company,
either directly or indirectly in writing, orally or by drawings or observation
of parts or equipment and such other documentation and information as is
necessary in the conduct of the business of the Bank or the Holding Company;
and

(ii)           THIRD PARTY
INFORMATION: confidential or proprietary information received by the Bank or
the Holding Company from third parties.

(2)           The Bank’s failure to
mark any of the Confidential Information as confidential or proprietary will
not affect its status as Confidential Information.

(3)           Executive also agrees
that the terms, conditions and subject matter of this Agreement are considered
Confidential Information.

(4)           Confidential
Information does not include information that has ceased to be confidential by
reason of any of the following: (i) was in Executive’s possession prior to the
date of his initial employment with the Bank, provided that such information is
not known by Executive to be subject to

 8
 

 

another confidentiality agreement with, or other obligation of secrecy
to, the Bank, the Holding Company, or another party; (ii) is generally
available to the public and became generally available to the public other than
as a result of a disclosure in violation of this Agreement; (iii) became
available to Executive on a non-confidential basis from a third party, provided
that such third party is not known by Executive to be bound by a
confidentiality agreement with, or other obligation of secrecy to, the Bank,
the Holding Company, or another party or is otherwise prohibited from providing
such information to Executive by a contractual, legal or fiduciary obligation;
or (iv) Executive is required to disclose pursuant to applicable law or
regulation (as to which information, Executive will provide the Bank with prior
notice of such requirement and, if practicable, an opportunity to obtain an
appropriate protective order).

(5)           Executive shall not,
either during or after the termination of his or her employment with the Bank,
communicate or disclose to any third party the substance or content of any
Confidential Information (defined above), or use such Confidential Information
for any purpose other than the performance of Executive’s obligations hereunder.
Executive acknowledges and agrees that any Confidential Information obtained by
Executive during the performance of his or her employment concerning the
business or affairs of the Bank, or any subsidiary, affiliate or joint venture
of the Bank is the property of the Bank, or such subsidiary, affiliate or joint
venture of the Bank, as the case may be.

(6)           Executive agrees to
return all Confidential Information, including all copies and versions of such
Confidential Information (including, but not limited to, information maintained
on paper, disk, CD-ROM, network server, or any other retention device
whatsoever) and other property of the Bank, to the Bank within two (2) business
days of his separation from the Bank (regardless of the reason for the separation).

(7)           RECOGNITION OF GOOD
WILL. Executive further recognizes and acknowledges that in the course of
employment he is and will be introduced to customers and others with important
relationships to the Bank. Executive acknowledges and agrees that any and all
“goodwill” associated with any existing or prospective customer, account or
business partner belongs exclusively to the Bank including, but not limited to,
any goodwill created as a result of direct or indirect contacts or
relationships between Executive and any existing or prospective customers,
accounts, business partners and other key relationships of the Bank.

(b)           NON-COMPETITION. In view of the covenants above, and as a
material inducement to the Bank to enter into this Agreement and to pay to
Executive the compensation stated in Section 2, Executive agrees that during
his employment and for a period of one (1) year thereafter (the
“Non-Competition Period”), he shall not, for himself or on behalf of any other
person or entity, directly or indirectly own, manage, control, participate in,
consult

 9
 

 

with, render services for or
in any manner engage in or have a financial interest in any business that
competes with the depository, lending, or other business activities of the Bank
in any city, town or county in which Executive’s normal business office is
located, or the Bank has an office or has filed an application for regulatory
approval to establish an office, determined as of the effective date of such
termination, except as agreed to pursuant to a resolution duly adopted by the
Bank.

Executive further agrees
that during the Non-Competition Period, he will not serve as an officer,
director or employee of any bank holding company, bank, savings association,
savings and loan holding company, mortgage company or other financial
institution that offers products or services competing with those offered by
the Bank or its subsidiaries or affiliates from any office within thirty-five
(35) miles from the main office of the Bank or any branch of the Bank.

The foregoing shall not
prohibit Executive from being a passive owner of not more than 5% of the
outstanding stock of a corporation which is publicly traded, so long as
Executive has no active participation in the business of the corporation.

(c)           NON-SOLICITATION. During the Non-Competition Period
Executive shall not, either individually or on behalf of or through any third
party, directly or indirectly, engage in the following activities:

(1)           CUSTOMER, CLIENT AND
VENDOR NON-SOLICITATION. Solicit, divert, appropriate or take away, or attempt
to solicit, divert, appropriate or take away, the business or patronage of any
of the clients, customers or vendors of the Bank that were clients, customers
or vendors of the Bank while Executive was employed by the Bank and that were
serviced by Executive, or prospective clients, customers or vendors with which
Executive had written or oral communications while Executive was employed by
the Bank.

(2)           EMPLOYEE
NON-SOLICITATION. Hire, retain, recruit, entice, induce, solicit or encourage
any employee or consultant to terminate their employment with, or otherwise
cease their relationship with, the Bank or its parent, subsidiaries or
affiliates. This section 5(c)(2) shall prohibit the aforesaid actions by
Executive with respect to any person both while such person is a current
employee or consultant of the Bank or such related entities, and for the ninety
(90) day period after such person’s employment or consultancy with the Bank
terminates.

The terms of this Section 5
of the Agreement are in addition to, and not in lieu of, any other contractual,
statutory or common law obligations that Executive may have relating to the
protection of the Bank’s Confidential Information or its property. The terms of
this section shall survive indefinitely Executive’s employment with the Bank,
provided that the Confidential Information of the Bank remains confidential and
is not a matter of public knowledge.

6.             RETURN OF PROPERTY. Within two (2) business days of the
termination of Executive’s employment hereunder for any reason or for no reason
and at any time requested by the Bank, Executive will deliver to the Bank any
property of the Bank that may

 10
 

 

be in his possession,
including, but not limited to, memoranda, notes, records, reports or other
documents or photocopies of the same.

7.             POST-TERMINATION OBLIGATIONS. Any and all payments,
benefits and vested rights due to Executive under this Agreement are subject to
his compliance with Sections 1(c), 5 and 6 of this Agreement. Upon a good faith
finding by the Board that Executive breached Sections 1(c), 5 or 6 of this
Agreement, the Bank shall be excused from making any and all payments under
this Agreement and Executive shall return to the Bank all previous payments
made to him under this Agreement.

8.             INDEMNIFICATION AND LIABILITY INSURANCE. Subject to and
limited by Section 22 of this Agreement, the Bank shall provide the following:

(a)           INDEMNIFICATION. The Bank agrees to indemnify Executive
(and his heirs, executors, and administrators), and to advance expenses related
to this indemnification, to the fullest extent permitted under applicable law
and regulations against any and all expenses and liabilities that Executive
reasonably incurs in connection with or arising out of any action, suit, or
proceeding in which he may be involved by reason of his service as a director
or Executive of the Bank or any of its subsidiaries or affiliates (whether or
not he continues to be a director or Executive at the time of incurring any
such expenses or liabilities). Covered expenses and liabilities include, but
are not limited to, judgments, court costs, and attorneys’ fees and the costs
of reasonable settlements, subject to Board approval, if the action is brought
against Executive in his capacity as an Executive or director of the Bank or
any of its subsidiaries or affiliates. Indemnification for expenses will not
extend to matters related to Executive’s termination for Cause. Notwithstanding
anything in this Section 8(a) to the contrary, the Bank will not be required to
provide indemnification prohibited by applicable law or regulation including,
but not limited to, Section 409A of the Code. The obligations of this Section 8
shall survive the term of this Agreement by a period of six (6) years.

(b)           INSURANCE. During the period for which the Bank must
indemnify Executive under this Section, the Bank will provide Executive (and
his heirs, executors, and administrators) with coverage under a directors’ and
officers’ liability policy, at the Bank’s expense, that is at least equivalent
to the coverage provided to directors and senior executives of the Bank and its
subsidiaries.

9.             LIMITATION ON PAYMENTS. In the event that the severance
and other benefits provided for in this Agreement or otherwise payable to the
Executive (i) constitute “parachute payments” within the meaning of Section
280G of the Code and (ii) but for this Section 9, would be subject to the
excise tax imposed by Section 4999 of the Code, then the Executive’s severance
benefits shall be either:

(a)           delivered in full, or

 

(b)           delivered as to such lesser extent which would result in
no portion of such severance benefits being subject to excise tax under Section
4999 of the Code,

whichever of the foregoing
amounts, taking into account the applicable federal, state and local income
taxes and the excise tax imposed by Section 4999, results in the receipt by the

 11
 

 

Executive on an after-tax
basis, of the greatest amount of severance benefits, notwithstanding that all
or some portion of such severance benefits may be taxable under Section 4999 of
the Code. Unless the Bank and the Executive otherwise agree in writing, any
determination required under this Section 9 shall be made in writing by the
Bank’s independent public accountants immediately prior to Change in Control (the
“Accountants”), whose determination shall be conclusive and binding upon the
Executive and the Bank for all purposes. For purposes of making the
calculations required by this Section 1, the accountants may make reasonable
assumptions and approximations concerning applicable taxes and may rely on
reasonable, good faith interpretations concerning the application of Sections
280G and 4999 of the Code. The Bank and the Executive shall furnish to the
Accountants such information and documents as the Accountants may reasonably
request in order to make a determination under this Section. The Bank shall
bear all costs the Accountants may reasonably incur in connection with any
calculations contemplated by this Section 9.

10.           DISCLOSURE TO FUTURE AND PROSPECTIVE EMPLOYERS. Executive
agrees that the Bank may notify any of his future or prospective employers or
other third parties of this Agreement and may provide a copy of this Agreement
to such parties without Executive’s further consent.

11.           INJUNCTIVE RELIEF. The parties hereto, recognizing that
irreparable injury will result to the Bank, its business and property in the
event of Executive’s breach or threatened breach of Sections 1(c), 5, and 6 of
this Agreement, agree that in the event of any such breach, the Bank, will be
entitled, in addition to any other remedies and damages available, to an
injunction to restrain Executive’s violation as well as any violations of his
partners, agents, servants, Executives and all persons acting for or under
Executive’s direction. Nothing herein will be construed as prohibiting the Bank
from pursuing any other remedies available to the Bank for such breach or
threatened breach, including the recovery of damages from Executive.

12.           SUCCESSORS AND ASSIGNS.

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

(b)           SUCCESSOR TO THE EXECUTIVE. Since the Bank is contracting
for the unique and personal skills of the Executive, neither this Agreement nor
any right or interest hereunder will be assignable or transferable by the
Executive, his beneficiaries or legal representatives, except by will or by the
laws of descent and distribution. This Agreement will inure to the benefit of
and be enforceable by the Executive’s legal personal representative.

13.           NO MITIGATION. Executive shall not be required to mitigate
the amount of any payment provided for in this Agreement by seeking other
employment or otherwise and no

 12
 

 

such payment shall be offset
or reduced by the amount of any compensation or benefits provided to Executive
in any subsequent employment.

14.           NOTICES. All notices, requests, demands and other
communications in connection with this Agreement shall be made in writing and
shall be deemed to have been given when delivered by hand or 48 hours after
mailing at any general or branch United States Post Office, by registered or
certified mail, postage prepaid, addressed to the Bank at its principal
business offices and to Executive at his home address as maintained in the
records of the Bank.

15.           NO PLAN CREATED BY THIS AGREEMENT. Executive and the Bank
expressly declare and agree that this Agreement was negotiated among them and
that no provision or provisions of this Agreement are intended to, or shall be
deemed to, create any plan for purposes of the Executive Retirement Income
Security Act of 1974 (“ERISA”) or any other law or regulation, and each party
expressly waives any right to assert the contrary. Any assertion in any
judicial or administrative filing, hearing, or process that an ERISA plan was
created by this Agreement shall be deemed a material breach of this Agreement
by the party making the assertion.

16.           AMENDMENTS AND WAIVER. No amendments or additions to this
Agreement shall be binding unless made in writing and signed by all of the
parties, except as herein otherwise specifically provided. No waiver by either
party of any breach of, or of compliance with, any condition or provision of
this Agreement by the other party shall be considered a waiver of any other
condition or provision or of the same condition or provision at another time.
Further, the Bank’s waiver of its right to enforce similar conditions or
provisions in another employee’s agreement (employment or other) shall not
operate as a waiver of its right to enforce any of the conditions or provisions
in this Agreement.

17.           CHOICE OF LAW; ENFORCEABILITY; WAIVER OF JURY TRIAL

(a)           THE LAW OF MASSACHUSETTS APPLIES TO THIS AGREEMENT. This
Agreement and all transactions contemplated by this Agreement shall be governed
by and construed and enforced in accordance with the internal laws of the
Commonwealth of Massachusetts, without regard to principles of conflicts of
law.

(b)           ANY DISPUTE REGARDING THIS AGREEMENT WILL TAKE PLACE IN
MASSACHUSETTS. The Parties agree that this Agreement shall be enforced by the
Business Litigation Session of the Massachusetts Superior Court located in
Suffolk County, which retains exclusive jurisdiction and venue for any actions
or proceedings, demand, claim or counterclaim relating to, or arising under,
the terms and provisions of this Agreement, or to its breach. The Parties
further acknowledge that material witnesses and documents would be located in
Massachusetts.

18.           SEVERABILITY. If a court of competent jurisdiction
determines that any portion of this Agreement is illegal, invalid or
unenforceable, then that portion shall be considered to be removed from the
Agreement and it shall not affect the legality, validity or enforceability

 13
 

 

of the remainder of the
Agreement and the remainder of the Agreement shall continue in full force and
effect. Similarly, if the scope of any restriction or covenant contained herein
should be or become too broad or extensive to permit enforcement thereof to its
full extent, then the court is specifically authorized by the parties to
enforce any such restriction or covenant to the maximum extent permitted by
law, and Executive hereby consents and agrees that the scope of any such
restriction or covenant may be modified accordingly in any judicial proceeding
brought to enforce such restriction or covenant.

19.           HEADINGS. Headings contained in this Agreement are for
convenience of reference only.

20.           ENTIRE AGREEMENT. This Agreement, together with any
modifications subsequently agreed to in writing by the parties, along with the
plans and any written agreements entered into by the parties pursuant to
Sections 2(c) and (d), shall constitute the entire agreement between the
parties, and shall supersede all prior agreements, understandings and
arrangements, oral or written, between the parties.

21.           SOURCE OF PAYMENTS. All payments provided in this
Agreement shall be paid in from the general funds of the Bank. In the event,
however, that the Bank is unable to make such payments to the Executive, such
amounts and benefits shall be paid or provided by the Holding Company.

22.           MISCELLANEOUS. Any payment made pursuant to this
Agreement, or otherwise, is subject to and conditioned upon their compliance
with 12 U.S.C. Section 1828(k) and FDIC regulation 12 C.F.R. Part 359, Golden
Parachute and Indemnification Payments.

23.           REPRESENTATIONS. Executive hereby represents and warrants
to the Bank that he understands this Agreement, that he enters into this
Agreement voluntarily and that his employment under this Agreement will not
conflict with any legal duty owed by him to any other party, or with any
agreement to which Executive is a party or by which he is bound, including,
without limitation, any non-competition or non-solicitation provision contained
in any such agreement. Executive will indemnify and hold harmless the Bank and
its officers, directors, security holders, partners, members, Executives,
agents and representatives against loss, damage, liability or expense arising
from any claim based upon circumstances alleged to be inconsistent with such
representation and warranty.

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 14

 

SIGNATURES

IN WITNESS WHEREOF, the
parties hereto have executed this Agreement on January 16, 2007.

 

	
  ATTEST:

  	
  HAMPDEN BANK

  
	
   

  	
   

  
	
  /s/ Donald Dupré

  	
   

  	
  By:

  	
  /s/ Thomas R. Burton

  	
   

  
	
   

  	
   

  
					

 

 

	
  Corporate Secretary

  	
  For the Entire
  Board of Directors

  
	
   

  	
   

  
	
  ATTEST:

  	
  HAMPDEN BANCORP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Donald Dupré

  	
   

  	
  By:

  	
  /s/ Thomas R. Burton

  	
   

  
	
  Corporate
  Secretary

  	
  For the Entire Board of
  Directors

  
	
   

  	
   

  
	
   

  	
   

  
	
  WITNESS:

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
  /s/ Donald Dupré

  	
   

  	
  /s/ Glenn S. Welch

  	
   

  
	
  Corporate
  Secretary

  	
  Glenn S. Welch

  

 

 15

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