Document:

<PAGE>

                                                             EXHIBIT NO. 10.7(b)

   Confidential Materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

                SAPIENT H2 2001 PERFORMANCE INCENTIVE BONUS PLAN

                              IMPORTANT INFORMATION

          This Plan contains highly confidential information about the revenue
and operations of Sapient Corporation and its consolidated subsidiaries
(individually or collectively, the "Company" or "Sapient"). This Plan may not be
shared with anyone outside of Sapient, and each Participant is required to keep
this Plan and its contents confidential at all times. Except as otherwise
permitted by law, disclosure of this Plan to anyone not an employee of Sapient
is a violation of whichever of the following agreements has been signed by the
Participant: Sapient Nondisclosure, Nonsolicitation and Noncompete Agreement;
Agreement Re: Nondisclosure, Nonsolicitation and Noncompetition; and/or
Employment Agreement. Neither the establishment of this Plan nor participation
in this Plan shall in any way, now, or hereafter, affect the employment
relationship between Sapient and Participants in this Plan. All Participants in
this Plan are employed by Sapient "at will." Sapient reserves the right to
terminate a Participant's employment and/or participation in this Plan at any
time, with or without cause and without prior notice. Nothing in this Plan shall
be construed to create or imply the guarantee or the creation of a contract of
employment or a right to continued employment for any specified period of time
between Sapient and any Participant. This Plan may be reviewed periodically and
may be modified, amended or terminated at Sapient's sole discretion to ensure
that it best supports Sapient's overall business objectives and strategies.

PHILOSOPHY & PURPOSE

          The purpose of the Sapient H2 2001 Performance Incentive Bonus Plan
(this "Plan") is to reward qualified, eligible Participants who achieve certain
individual, group and Company goals during a period when the Company has also
achieved certain profit goals.

          This Plan is designed to encourage specific types of performance.
Receipt of a bonus under this Plan is not guaranteed, but rather depends on
individual, group and Company performance compared against specific objectives.
The Company is optimistic that, during periods when the Company achieves its
profitability goals, Participants will have the opportunity to earn a bonus.
Conversely, if achievement of profit goals or individual, group or Company
performance falls short of expectations, Participants may qualify for a limited
bonus, or possibly no bonus, as described on EXHIBIT A attached to this Plan and
as determined by the Company in its sole discretion.

OBJECTIVES

     -    Motivates near-term performance.

     -    Attracts and retains a high-quality team.

                                       1
<PAGE>

     -    Aligns all leaders of Sapient around the same business objectives.

     -    Rewards teamwork and joint accountability.

EFFECTIVE DATE

          This Plan is effective July 1, 2001, and covers the period from July 1
through December 31, 2001 (the "Plan Period"), unless modified or terminated
earlier as provided for in this Plan. All prior bonus plans have been revoked
and withdrawn. This Plan for Participants supersedes all prior written or oral
bonus plans, promises, agreements, practices, understandings, negotiations
and/or incentive arrangements.

ELIGIBILITY

          A person who is eligible to participate in this Plan (a "Participant")
must meet the following criteria:

               (1)  He or she must be a Director, Executive Vice President,
               Senior Vice President, Vice President, Executive Officer,
               Strategist, Senior Strategist or Lead Strategist during the Plan
               Period;

               (2)  He or she must be actively employed by Sapient during the
               entire Plan Period and on the date any bonus payouts are made,
               except for new hires and in certain other circumstances where a
               pro rata bonus will be paid (as discussed below).

          New hires are eligible as Plan Participants for a pro rata bonus if
hired and actively working before December 1, 2001.

          A Participant who is put on a Get Well Plan or a performance
improvement plan at any time during the Plan Period is not eligible for a
payout, unless an exemption is approved in writing by the Senior Vice President
or Vice President in charge of the People Strategy Organization (the "PSO").

PLAN COMPONENTS

          A.   COMPANY PROFITABILITY

     -    Earning, funding and receipt of bonuses under this Plan are all
          contingent on the Company's achieving a satisfactory level of
          profitability, as described on EXHIBIT A attached to this Plan and as
          determined in the sole discretion of the Company.

     -    The Company will first consider whether its financial performance
          justifies the funding of a pool available for payment of any bonuses
          under this Plan.

     -    If the Company does not achieve its profitability target, the Company
          may, at any time and in its sole discretion, decide not to fund the
          pool and that no bonuses will be payable.

SAPIENT CONFIDENTIAL                                                    Page  2
<PAGE>

     -    If the Company determines profitability is satisfactory, then the
          Company will determine the size of the funding pool available for
          payouts under this Plan.

     -    Then, eligibility for individual bonuses (if any) will be determined
          using the criteria set forth below.

          B.   TARGET PI AND WEIGHTED METRIC PI COMPONENTS

          At the beginning of the Plan Period, or at the time a Participant
enters this Plan, each Participant will be assigned a target Performance
Incentive ("PI") dollar amount and goals. Those goals will be determined by the
Company and may be changed at any time in the Company's sole discretion. Each
metric will be allocated at a different percentage based on a Participant's
role.

          Currently, there are four components to the Weighted Metric PI, which
includes individual, group and Company metrics. Each component within the
Weighted Metric PI accounts for a specified percentage of a Participant's
potential bonus. Participants typically can positively or negatively affect the
target PI amount based on the level of achievement of goals for these four
metrics. The result of the calculation of these four metrics is referred to as
the Participant's potential "Weighted Metric PI." The components are:

                    -    Client Satisfaction
                    -    People Turnover
                    -    Revenue
                    -    Time Tracking

               1.   CLIENT SATISFACTION

               The client satisfaction metric is based on the time-weighted
          average of all client satisfaction scores pertaining to clients,
          projects, business unit and/or Sapient. The Company will use
          unadjusted client satisfaction scores, except when an adjustment is
          approved by both the Business Unit Lead and the Chief Operating
          Officer. In calculating client satisfaction scores, averages from the
          resource plans according to Pyramid will be weighted by the length of
          the project. If a Participant is staffed to a project with 0% resource
          allocation, then no client satisfaction score for that project will be
          used in the overall calculation.

               Participants are required to get client satisfaction scores
          entered into Pyramid within two months after the completion of a
          project. The rules for proration and determining whether or not a
          project is "complete" for purposes of bonus calculation are below.

               The target score for client satisfaction typically will be
          established at the beginning of the Plan Period.

SAPIENT CONFIDENTIAL                                                    Page  3
<PAGE>

               2.   PEOPLE TURNOVER

               The people turnover metric is based on the voluntary turnover in
          a metro area or Sapient-wide, depending upon the Participant's role.
          The people turnover metric will be based on annualized statistics for
          voluntary turnover in each metro area or company-wide for the Plan
          Period.

               3.   REVENUE

               Revenue typically will be calculated based on the achievement of
          business unit and/or Sapient-wide goals, as determined and/or modified
          by the Company at any time in its sole discretion. Revenue is based on
          actual work performed on projects for clients unless no binding
          commitment letter, contract or purchase order has been signed and work
          has been going on for more than 30 days, in which event such revenue
          will not be included in the calculation. Sales made and/or services
          provided that determine targets and qualify for potential PI
          calculation include sales of Sapient services that are in accordance
          with established terms and rates in effect at the applicable times
          during the Plan Period. The average exchange rate for the relevant
          period will be used for conversions of non-U.S. currencies. Revenue
          included in the calculation may not necessarily match revenue recorded
          on the audited financial statements. Should an acquisition occur
          during the Plan Period and financials consolidated, these numbers will
          be adjusted to reflect the revenue after the acquisition. The Company
          reserves the right to change the revenue plans at any time based on
          changes in circumstances or for any other reason. Achievement of
          revenue above or below revenue-targeted levels may affect
          Participants' Revenue metric either upward or downward. For Business
          Unit revenues, the performance percentage equals actual Business Unit
          revenue achieved divided by Business Unit target revenue. If the
          Performance Percentage achievement is less than [**]%, the factor for
          this metric will be 0%.

               4.   TIME TRACKING

               A Participant's submission of time cards through the Oracle Time
          Tracking application is an important component of this Plan (including
          the frequency and duration of any late submittals). In general, time
          cards will be considered late if not submitted by 10 p.m. US EST (or
          EDT, when applicable) on the Wednesday following the week for which
          time is being reported. Repeated failure to submit time cards in a
          timely manner may result in a Participant being disqualified from
          receiving all or a portion of a bonus for the Plan Period.

               5.   NO PERSONAL CONTRIBUTION GOALS/MBO'S IN PLAN PERIOD

               During this Plan Period, the Company will not be using MBO's or
          Personal Contribution Goals as a component of this Plan.

          C.   ASSIGNED PERCENTAGES AND ROUNDING

SAPIENT CONFIDENTIAL                                                    Page  4
<PAGE>

          The Company will determine the weights assigned to each of the
components of the Weighted Metric PI. When these assigned percentages have been
determined for achievement under each of the four metrics, the assigned
percentages are then applied against the potential PI Targets for each metric to
determine each Participant's potential Weighted Metric PI.

          A note on rounding: client satisfaction scores and the people turnover
metric will be rounded to two decimal places, with anything equal to or above a
value of 5 in the third decimal place being rounded up. For revenue, whole
dollar amounts will be used and rounded in the same manner. For Individual
Practice Contribution, actual achievement will be a whole number.

TIMING OF PAYOUTS; PRORATED PAYOUTS

          A.   TIMING

          The Company will endeavor to payout any authorized bonuses under this
Plan within sixty (60) days of the end of the Plan Period.

          B.   PROJECTS INCLUDED IN COMPUTATION OF BONUSES

     -    Projects already underway as of July 1, 2001 are included in the
          calculation of any bonuses available under this Plan, if other Plan
          requirements and terms are met.

     -    Only Projects that are "complete" will be considered in the bonus
          calculation.

     -    To be considered "complete," work on a Project must be finished, and
          the unadjusted client feedback scores must be received by the Director
          of Compensation before the date that is: (i) two months after the
          completion of the Project for all Projects that are finished prior to
          November 1, 2001, or (ii) the last day of the Plan Period for all
          Projects that are finished on or after November 1, 2001 and before the
          end of the Plan Period.

     -    If a Project is finished prior to November 1, 2001 and the unadjusted
          client feedback scores are not received by the Director of
          Compensation before the date that is two months after the completion
          of the Project, the Project may be considered "completed" and included
          in this Plan Period with a score of "zero" in the discretion of the
          Director of Compensation. No estimated scores will be included in the
          calculation of any bonus.

     -    If a Project is NOT finished prior to November 1, 2001 and client
          feedback scores are not received prior to the end of the Plan Period,
          the Project may be considered as part of an immediately subsequent
          Plan Period (if any), if the client feedback scores are received by
          the Director of Compensation before the date that is no later than two
          months after the completion of the Project.

          C.   PRO RATA PAYMENT

          If a prorated bonus is payable, the following rule applies: Proration
will be calculated on the basis of 16.6% for each full calendar month of
eligibility, as outlined in the following table:

SAPIENT CONFIDENTIAL                                                    Page  5
<PAGE>

                           ---------------------------
                           # OF MONTHS      PRORATION
                           ---------------------------
                           1                .0167
                           ---------------------------
                           2                .333
                           ---------------------------
                           3                .500
                           ---------------------------
                           4                .667
                           ---------------------------
                           5                .833
                           ---------------------------
                           6                1.000
                           ---------------------------

SAPIENT CONFIDENTIAL                                                    Page  6
<PAGE>

          D.   ELIGIBILITY FOR PRO RATA PAYMENT

          To the extent any bonuses are paid under this Plan, eligible new hires
will earn a full calendar month of pro rata credit for a bonus in their first
month of employment if they actively begin work on or before the fifteenth
(15th) of the month.

         To the extent any bonuses are paid under this Plan, current employee
Participants will earn a full calendar month of pro rata credit if the event
causing pro rata calculation occurs on or after the sixteenth (16th) of the
given month.

          The following circumstances may warrant pro rata payment:

     -    Certain role changes (as described below);

     -    Involuntary termination without "Cause" (as defined below); and

     -    Qualified leave of absence, disability or death of Participant (as
          discussed below).

ROLE CHANGES

          A Participant ceases to participate in this Plan if he or she changes
to a Sapient role or job that is not eligible under this Plan. If a person
remains employed by the Company but moves to a role that is not eligible under
this Plan, then PI targets, metrics and payout will be prorated based on the
time in the eligible role for the relevant part of the Plan Period. If a
Participant remains on this Plan for the entire Plan Period but during that time
switches to a different role also covered by this Plan, then that Participant
will receive any approved bonus using the metrics for each role and prorated for
the time served in each role.

TERMINATION OF EMPLOYMENT

          Participants must be employed by the Company in an eligible role
during the entire Plan Period and on the date payouts are made under this Plan
in order to receive a payout under this Plan (except in the circumstances
described in the Plan when a prorated payment is permitted). Therefore,
employees who voluntarily terminate their employment before the end of the Plan
Period or before the date payouts are made are not eligible for any payout.

          If the Company terminates a Participant's employment without "Cause"
(as that term is defined below) prior to the end of the Plan Period or the date
payouts are made, that Participant will be eligible for pro rata payout in
accordance with the above schedule, if the Company decides that a bonus will be
paid for the Plan Period. Because bonuses are not calculated until after the end
of the Plan Period, an employee terminated without "Cause" will be paid his/her
prorated bonus at the same time that bonuses are paid to other Participants or,
at the Company's discretion, at an earlier date.

          If the Company terminates a Participant's employment with "Cause"
prior to the end of the Plan Period or the date payouts are made, that
Participant will not be eligible for any bonus.

          For purposes of this paragraph, "Cause" shall mean, as determined by
the Company in its sole discretion: (a) a Participant's substantial and
continuing failure to perform the duties of his

SAPIENT CONFIDENTIAL                                                    Page  7
<PAGE>

or her employment (whether by reason of neglect, inattention, inability or
otherwise): (b) a Participant's willful misconduct or gross negligence in
connection with the performance of such duties; (c) breach of any of a
Participant's representations, warranties or obligations under the Sapient
Nondisclosure, Nonsolicitation and Noncompete Agreement, Agreement Re:
Nondisclosure, Nonsolicitation and Noncompetition or Employment Agreement; or
(d) a Participant's conviction of a felony, either: (i) in connection with the
performance of his or her obligations to the Company; or (ii) which could
adversely affect his or her ability to perform such obligations.

LEAVES OF ABSENCE AND SHORT-TERM DISABILITY

          If a Participant takes an approved leave of absence (including a
medical leave under the Company's Short-Term Disability Program) during the Plan
Period for fewer than 30 days, no adjustment will be made in the payout
calculation or in the Participant's goals.

          If such leave of absence extends for more than 30 days during the Plan
Period, the objectives may be altered and the Participant may be eligible for a
pro rata bonus, calculated in accordance with the above table and the other
terms of this Plan. All payments (if any) will be paid on the same date that
active Participants receive payment.

          For purposes of determining whether the payment may be pro rated, a
leave of absence begins on the date that the leave of absence begins as noted in
the Company's records (or in the case of short term disability, on the same date
that short term disability benefits begin).

DEATH AND LONG-TERM DISABILITY

          In the event of long-term disability or death, a pro rated payment
based on the length of service during the Plan Period may be paid in accordance
with the above table and other terms of this Plan. All such payments (if any)
will be paid on the same date that active Participants receive payment.

          "Long-term disability" is defined as eligibility to receive long-term
disability benefits under the Company's LTD Policy.

          For proration purposes, active service ends when the employee is no
longer paid regular wages through payroll for work performed.

FORMS OF PAYMENT

          Where permitted by law, Sapient may, with the agreement of a
Participant, pay a bonus in whole or in part, in cash, stock options, stock,
warrants or other equity instruments (or any combination thereof), in such
amounts and under such terms and conditions as may be agreed to between Sapient
and a Participant.

LOANS OR ADVANCES

          Loans or advances against potential bonuses or PI will not be made
under this Plan, and bonus payouts will not be made to any Participant in
advance of the date they are made to all

SAPIENT CONFIDENTIAL                                                    Page  8
<PAGE>

Participants. If a Participant has an outstanding advance or loan from the
Company, all or a portion of any bonus payout under this Plan may be first
applied to the outstanding balance of such advance or loan, where permitted by
law.

PLAN ADMINISTRATION AND MANAGEMENT

          A Plan Committee will administer this Plan. The Plan Committee will be
composed of three members of the Company's Leadership Team, to be appointed by
the Compensation Committee of the Board of Directors of the Company (the
"Compensation Committee"). The Plan Committee will have full and absolute
discretion with respect to administration of all aspects of this Plan,
including, without limitation, determining Plan payouts, interpreting this Plan
and ruling on special situations. Further, the Plan Committee, in its sole
discretion and with or without notice or cause, may, to the extent authorized by
the Compensation Committee, modify, amend or terminate this Plan or take other
actions affecting Plan Participants. The Company will use good faith efforts to
give reasonable advance notice to Participants of such actions.

          The Company's books and records are the exclusive source of data for
administration of this Plan. The Plan Committee's interpretation of the books
and records is final.

          If a Participant wants to dispute a bonus payout decision affecting
the Participant, that Participant must request reconsideration in writing. The
request must be given to the Senior Vice President or Vice President of the PSO
within 60 days after the date of the disputed decision.

          By participating in this Plan, each Participant agrees that a failure
to properly request reconsideration within this 60-day period constitutes
agreement with such decision by the Company. If the reconsideration request is
properly submitted, the Senior Vice President or Vice President of the PSO will
resolve the disputed decision upon review of the circumstances and of the
available documentation and submit his or her initial determination to the Plan
Committee for review. The decision of the Plan Committee as to such dispute will
be final.

MISCELLANEOUS

          Unless required by law, a Participant may not assign this Plan or any
bonus payment or right to payment.

          If a provision of this Plan is found invalid, illegal or
unenforceable, the other provisions of this Plan shall remain in full force and
effect, and such invalid, illegal or unenforceable provision shall be reformed
as necessary to make it valid, legal and enforeceable to the maximum extent
possible under law (or, if such reformation is impossible, such provision shall
be severed from this Plan).

          All payouts under this Plan are subject to applicable withholdings and
deductions as required by law.

          This Plan supersedes all prior understandings, negotiations and
agreements, whether written or oral, between each individual Participant and the
Company as to the subject matter

SAPIENT CONFIDENTIAL                                                    Page  9
<PAGE>

covered by this Plan. This Plan describes the sole and exclusive bonuses the
Company is offering to Participants during the Plan Period.

SAPIENT CONFIDENTIAL                                                    Page  10
<PAGE>

                                    EXHIBIT A
                                       TO
            SAPIENT H2 2001 PERFORMANCE INCENTIVE BONUS PLAN DOCUMENT

The funding of this Plan is based on Company profitability. The Company's
profitability targets for the Plan Period are:

     -    Revenue: $[**]

     -    Operating costs (excluding any bonus payout): $[**]

     -    Operating profit excluding any bonus payout (referred to as "OPEB"):
          $[**]

At a high level, the funding formula for the Plan Period works as follows:

     -    If the Company's OPEB is negative, the bonus pool [**]. At this
          achievement level, [**].

     -    If the Company achieves OPEB between $[**]-$[**], the bonus pool [**].
          The Company anticipates that if it achieves its OPEB target, the bonus
          pool will be fully funded.

     -    If the Company's OPEB exceeds its target, over-funding of the bonus
          pool will be at the discretion of the Company.

SAPIENT CONFIDENTIAL                                                    Page  11<PAGE>

                                                                    Exhibit 10.6

                              MASSBANK FOR SAVINGS
              TERMS AND CONDITIONS OF DEFERRED COMPENSATION PROGRAM
              -----------------------------------------------------

     1.   Eligibility in the Program shall be limited to the employees of the
MASSBANK for Savings (the "Bank") whose Taxable Compensation exceeds the IRC
Section 401(a)(17) annual compensation limit (the "Participants").

     2.   (a)  Each Participant who is actively employed by the Bank on October
               31, beginning October 31, 1994, shall receive a deferred
               compensation award in an amount equal to 20% of his Taxable
               Compensation during the prior twelve-month period that is in
               excess of the IRC Section 401(a)(17) annual compensation limit.
               All amounts awarded to a Participant under this Paragraph 2(a)
               shall be credited to a separate book account (a "Deferred
               Compensation Account") in his name as of October 31 of each year.

          (b)  The term "Taxable Compensation" shall mean the eligible
               Participant's annual compensation paid by the Bank and recognized
               as such under the Bank's qualified retirement plan ("SBERA"), but
               without regard to the IRC Section 401(a)(17) annual compensation
               limit or any indirect noncash compensation and contributions to
               this Program.

          (c)  The IRC Section 401(a)(17) annual compensation limit is $235,840
               for the year ending October 31, 1994, and $150,000 for the year
               ending October 31, 1995, as adjusted by the Secretary for
               increases in the cost-of-living in accordance with Section
               401(a)(17)(B) if the Internal Revenue Code of 1986, as amended.

     3.   The amount standing to the credit of a Participant's Deferred
Compensation Account shall be deemed invested in one or more the mutual funds
chosen by the Participant from time to time in accordance with such rules and
regulations adopted by the Administrator. From time to time and no less often
than once a year, the amount standing to the credit of a Participant's Deferred
Compensation Account shall be adjusted on an equitable basis for deemed earnings
or losses. The reasonable determination of such adjustment by the Administrator
shall be conclusive and binding on all Participants and their beneficiaries.

     4.   During his period of active employment, no Participant shall have any
rights to the amounts which he has been awarded hereunder. Participation in the
Program, and any actions taken pursuant to the Program, shall not create or be
deemed to create a trust or fiduciary relationship of any kind between the Bank
and the Participant. The Bank may, but shall have no obligation to, establish
any separate fund, reserve, or escrow or to provide security with respect to any
amounts awarded under the Plan. Any assets of the Bank which are set aside in
any separate fund, reserve or escrow shall continue for all purposes to be a
part of the general assets of the Bank, with title to the beneficial ownership
of any such assets remaining at all times in the Bank. No Participant, his legal
representatives, or any of his beneficiaries shall have any right, other than
the right of an unsecured general creditor of the Bank, in respect of the
Deferred Compensation Account established hereunder, and such persons shall have
no property interest whatsoever in any specific assets of the Bank.

     5.   (a)  Except as otherwise provided in Paragraph 6 below, upon the
               termination of a Participant's employment with the Bank, the
               Participant shall be entitled to receive a percentage of the
               amount standing to the credit of his Deferred Compensation
               Account. Such percentage shall be calculated according to the
               vesting schedule provided in SBERA.

<PAGE>

          (b)  Such payment shall be made within 60 days of the Participant's
               termination of employment. The vested amount standing to the
               credit of the Participant's Deferred Compensation Account as of
               the preceding October 31 shall be adjusted for earnings or losses
               based on the total investment return on the Participant's
               investment choice from November 1 of the year of termination
               until the end of the month immediately preceding the date of
               distribution. Such payment shall completely discharge the Bank's
               obligation under the Program and the Participant shall forfeit
               the non-vested portion of his Deferred Compensation Account. The
               Board of Directors of the Bank (the "Board") shall have full
               power and discretion to award additional vesting to any
               Participant.

     6.   Notwithstanding anything to the contrary contained herein, in the
event of a good faith determination by the Board that a Participant (a)
committed fraud in respect of any matter involving the Bank in any respect
whatsoever, (b) misappropriated an asset or assets of the Bank, whether tangible
or intangible, (c) committed gross misconduct, or (d) has been convicted of a
crime involving moral turpitude, then the Participant shall immediately forfeit
all rights to amounts credited to such Participant's Deferred Compensation
Account, and the Participant, his estate, or beneficiaries shall have no further
rights with respect thereto or any claims against the Bank under this Program.

     7.   Any distribution of deferred compensation payments will be reduced by
the amounts required to be withheld pursuant to any governmental law or
regulation with respect to taxes or similar provisions.

     8.   If a Participant who has deferred compensation under the Program dies
before he has received full payment of the amount credited to his account, such
unpaid portion shall be paid to the Participant's beneficiary as designated by
the Participant in writing. If no beneficiary has been designated or if a
designated beneficiary has predeceased the Participant, such unpaid portion
shall be paid to the Participant's surviving spouse, if any; otherwise to the
Participant's estate.

     9.   The deferred compensation payable under this Program shall not be
subject to alienation, assignment, garnishment, execution, or levy of any kind,
and any attempt to cause any compensation to be so subjected shall not be
recognized.

     10.  All expenses incurred, or taxes paid by the Bank, and attributable to
a Participant's Deferred Compensation Account shall be borne by the Bank and
shall not reduce the amount credited to such Deferred Compensation Account.

     11.  Nothing in this Program shall be construed as giving any Participant
the right to be retained in the employ of the Bank in any capacity. The Bank
expressly reserves the right to dismiss any employee, at any time, without
liability for the effect which such dismissal may have upon such employee
hereunder.

     12.  This Program may be amended in any way or may be terminated, in whole
or in part, at any time, and from time to time, by the Board. The foregoing
provisions of this paragraph notwithstanding, no amendment or termination of the
Program shall adversely affect the amounts payable hereunder on account of
compensation awarded under the Program prior to the effective date of such
amendment or termination.

                                       2
<PAGE>

     13.  The Board shall delegate the administration of this Program to an
individual who shall serve as the Administrator. The Administrator shall have
full power and authority to interpret, construe, and administer this Program,
and the Administrator's interpretations and construction thereof, and actions
hereunder, including any determination of any amount credited or charged to the
Participant's Deferred Compensation Account or the amount or recipient of any
payment to be made therefrom, shall be binding and conclusive on all persons for
all purposes.

     14.  All notices, elections, or designations by a Participant to the Bank
shall be delivered in person or by registered mail, postage prepaid, and noted
to be brought to the attention of the Administrator.

     15.  The terms of this Program shall be binding upon and shall inure to the
benefit of the Bank and its successors or assigns and each Participant and his
beneficiaries, heirs, executors, and administrators.

     16.  Subject to its obligation to pay the amount credited to the
Participant's Deferred Compensation Account at the time distribution is called,
neither the Bank, any person acting on behalf of the Bank nor the Administrator
shall be liable for any act performed or the failure to perform any act with
respect to the terms of the Program, except in the event that there has been a
judicial determination of willful misconduct on the part of the Bank, such
person or the Administrator.

     17.  This Program, and all actions taken hereunder, shall be governed by
and construed in accordance with the laws of the Commonwealth of Massachusetts,
except as such laws may be superseded by any applicable Federal laws.

     18.  This Program shall be effective as of October 31, 1994.

     19.  (a)  All claims for benefits under this Program shall be filed in
               writing with the Administrator in accordance with such procedures
               as the Administrator shall reasonably establish.

          (b)  The Administrator shall, within 90 days of submission of a claim,
               provide adequate notice in writing to any claimant whose claim
               for benefits under the Program has been denied. Such notice shall
               contain the specific reason or reasons for the denial and
               references to specific Program provisions on which the denial is
               based. The Administrator shall also provide the claimant with a
               description of any material or information which is necessary in
               order for the claimant to perfect his claim and an explanation of
               why such information is necessary. If special circumstances
               require an extension of time for processing the claim, the
               Administrator shall furnish the claimant a written notice of such
               extension prior to the expiration of the 90-day period. The
               extension notice shall indicate the reasons for the extension and
               the expected date for a final decision, which date shall not be
               more than 180 days from the initial claim.

          (c)  The Administrator shall, upon written request by a claimant
               within 60 days of receipt of the notice that his claim has been
               denied, afford a reasonable opportunity to such claimant for a
               full and fair review by the Administrator of the decision denying
               the claim. The Administrator will afford the claimant an
               opportunity to review pertinent documents and submit issues and
               comments in writing. The claimant shall have the right to be
               represented.

                                       3
<PAGE>

          (d)  The Administrator shall, within 60 days of receipt of a request
               for a review, render a written decision on his review. If special
               circumstances require extra time for the Administrator to review
               his decision, the Administrator will attempt to make his decision
               as soon as practicable, and in no event will the Administrator
               take more than 120 days to send the claimant a written notice of
               his decision.

     IN WITNESS WHEREOF, this Program has been signed and sealed for and on
behalf of the Bank by its duly authorized officer this 15th day of November,
1994.

                                                MASSBANK FOR SAVINGS

                                                /s/ Reginald E. Cormier
                                                --------------------------------
                                                Sr. Vice President, Treasurer
                                                And CFO

                                       4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}]]