Document:

EXHIBIT 10.6

  
 Exhibit 10.6

  
 UNITED BANK 
  
 West Springfield, Massachusetts 
  
 INCENTIVE PLAN 
  
 2004 
  

  
 UNITED BANK 
 West Springfield, Massachusetts 
  
 INCENTIVE PLAN 
  
 Table of Contents 
  

			
	 	  	Page

	 Introduction and Highlights of Incentive Plan for 2004
	  	1-2
		
	 Incentive Plan
	  	 
		
	 Section I - Definitions
	  	3   
		
	 Section II - Participation
	  	4   
		
	 Section III - Activating the Plan
	  	4   
		
	 Section IV - Calculation of Awards
	  	4   
		
	 Section V - Distribution of Awards
	  	5   
		
	 Section VI - Plan Administration
	  	5   
		
	 Section VII - Amendment, Modification, Suspension or Termination
	  	5   
		
	 Section VII - Effective Date
	  	6   
		
	 Section IX - Employer Relations with Participants
	  	6   
		
	 Section X - Governing Law
	  	6   
		
	 Section XI - President’s Discretion
	  	6   
		
	 2004 Performance Goals
	  	Appendix A
		
	 Distribution of Awards
	  	Appendix B

  

  
 UNITED BANK 
 West Springfield, Massachusetts 
  
 Introduction and Highlights of 
 Incentive Plan for 2004 
  
 Thomas Warren and Associates has been
retained by the United Bank to develop an incentive plan. It is important to examine the benefits which accrue to the organization through the operation of the incentive plan. 
  

	 	•	 	Provides Motivation: The opportunity for incentive awards provides all employees with the impetus to “stretch” for challenging, yet attainable, goals.

  

	 	•	 	Provides Retention: by enhancing the bank’s competitive compensation posture. 

  

	 	•	 	Provides Team Building: by making the incentive award dependent on the attainment of bank goals, a “team orientation” is fostered among all employees.

  

	 	•	 	Provides Competitive Compensation Strategy: The implementation of incentive arrangements is common in the banking industry today. 

  

 - 1 - 

 The highlights of the incentive plan included in the following pages are as follows: 
  

	 	1.	The recommended plan is competitive compared with similar sized banks and the banking industry in general. 

  

	 	2.	The Board of Directors controls all aspects of the Plan. 

  

	 	3.	All employees are participants with the exception of Personal Bankers and Financial Services Representatives. 

  

	 	4.	The financial criteria necessary for plan operation consists of ROA, Growth in Core Deposits, and Efficiency Ratio Goals. 

  

	 	5.	Award distribution would be made during the first quarter of the following plan year. 

  

	 	6.	The categories of incentive plan participants are as follows: 

  

			
	 Position Level

	  	Range of Bonus Awards

	 Exempt 11
	  	0% - 35%
	 Exempt 10
	  	0% - 27%
	 Exempt 7 - 9
	  	0% - 23%
	 Exempt 3 - 6
	  	0% - 19%
	 Nonexempt 3 - 10
	  	 0% - 8%

  

 - 2 - 

  
 UNITED BANK  
 West Springfield,
Massachusetts 
  
 The Board of Directors of United Bank has established this
Incentive Plan. The purpose of the plan is to meet and exceed financial goals and to promote a superior level of performance relative to the bank’s competition in its market area. Through payment of incentive compensation beyond base salaries, the plan provides reward for meeting and exceeding the bank’s financial goals as well as
recognition of individual achievements for plan participants. 
  
 SECTION I - DEFINITIONS 
  
 Various terms used in the plan are defined as follows: 
  
 Base Salary: the base salary at the end of the plan year, excluding any bonuses, contributions to employee benefit programs, or other compensation not designated as salary. 
  
 Board of Directors: The Board of Directors of United Bank. 

  
 President & CEO: President and CEO of
United Bank. 
  
 Performance Goals: Those pre-set
objectives and goals which are required to activate distribution of awards under the plan. 
  
 Compensation Committee: The Compensation Committee of the Board of Directors of the Bank. 
  
 Plan Participants: All employees of the bank with the exception of Personal Bankers and the Financial Services Representatives. 
  
 Plan Year: The calendar year. 
  

 - 3 - 

 SECTION II - ELIGIBILITY TO PARTICIPATE 
  
 To be eligible for an award under the plan, a plan participant must be in regular full-time,
reduced full-time or regular part-time service of the bank during the calendar year. If a plan participant leaves the employ of the bank during the plan year, he/she is not eligible to receive an award. However, if the active full-time service with
the bank of a participant in the plan is terminated by death, disability, or retirement, as defined by the United Bank Retirement Plan Summary Plan Descriptions, a pro-rated award will be granted based on active service during the plan year.
Pro-rated awards will also be granted for participants hired during the plan year, if the participant was on an approved leave of absence during the plan year and for those in a reduced full time or regular part time status. 
  
 SECTION III - ACTIVATING THE PLAN 
  
 The operation of the plan is predicated on attaining and exceeding performance goals. The
goals will consist of ROA, core deposit growth, and Efficiency Ratio goals. The performance goals for the plan year are set forth in Appendix A. The plan will activate at .55 ROA for the entire plan. 
  
 SECTION IV - CALCULATION OF AWARDS 
  
 The Compensation Committee designates a rate of distribution for the award. The actual rate
of distribution is based upon bank performance as shown in the matrix (Appendix B). The full Board of Directors will approve the final award distributions. 
  

 - 4 - 

 SECTION V - DISTRIBUTION OF AWARDS 
  
 Distribution of awards will be made during the first quarter following the plan year.
Distribution of the incentive award must be approved by the Board of Directors. In the event of death, any approved award as outlined in Section II for distribution will become payable to the designated beneficiary of the participant as
recorded under the bank’s group life insurance program, or in the absence of a valid designation, to the participant’s estate. 
  
 SECTION VI - PLAN ADMINISTRATION 
  
 The Compensation Committee shall, with respect to the plan, have full power and authority to construe, interpret and manage, control and administer this plan, and to pass
and decide upon cases in conformity with the objectives of the plan under such rules as the Board of Directors of the bank may establish. 
  
 Any decision made or action taken by the Bank, the Board of Directors, or the Compensation Committee arising out of, or in connection with, the administration,
interpretation, and effect of the plan shall be at their absolute discretion and will be conclusive and binding on all parties. 
  
 No member of the Board of Directors, Compensation Committee, or employee of the bank shall be liable for any act or action hereunder, whether of omission or commission,
by a plan participant or employee or by any agent to whom duties in connection with the administration of the plan have been delegated in accordance with the provision of the plan. 
  
 SECTION VII - AMENDMENT, MODIFICATION, SUSPENSION OR TERMINATION 
  
 The bank reserves the right, by and through its Board of Directors to amend, modify,
suspend, reinstate or terminate all or part of the plan. Management will communicate to each participant any amendment, suspension or termination or any material modification of the plan. 
  

 - 5 - 

 SECTION VIII - EFFECTIVE DATE OF THE PLAN 
  
 The effective date of the plan shall be January 1, 2004 and the January 1 of each calendar
year for succeeding plan years. 
  
 SECTION IX -
EMPLOYER RELATION WITH PARTICIPANTS 
  
 Neither establishment nor the
maintenance of the plan shall be construed as conferring any legal rights upon any participant or any person for a continuation of employment, nor shall it interfere with the right of an employer to discharge any participant or otherwise deal with
him/her without regard to the existence of the plan. 
  
 SECTION X - GOVERNING LAW 
  
 Except to the extent pre-empted
under federal law, the provisions of the plan shall be construed, administered and enforced in accordance with the domestic internal law of the State of Massachusetts. In the event of relevant changes in the Internal Revenue Code, related rulings
and regulations, or changes imposed by other regulatory agencies affecting the continued appropriateness of the plan and awards made thereunder, the Board may, at its sole discretion, accelerate or change the manner of payments of any unpaid awards
or amend the provisions of the plan. 
  
 SECTION
XI - PRESIDENT’S DISCRETION 
  
 The President & CEO will review
the amounts to be awarded to individual participants in the incentive plan. To be eligible for a full award under the plan, a plan participant’s most recent performance appraisal must meet acceptable standards, defined as a “Meets
Most” performance rating. A pro-rated award of 50% will be allowed for a “Meets Some” performance rating. There will be no award if under a written warning at the time the awards are approved by the Board of Directors. 
  
 The President may recommend to the Board of Directors an adjustment to a bonus award for an
individual if their performance warrants. Board of Directors may adjust the President & CEO’s bonus award. 
  

 - 6 - 

 APPENDIX A 
  
 UNITED BANK 
 West Springfield, Massachusetts

  
 2004 Performance Goals 
  

					
	 	  	Weight

	 	2004
Budget

	 1) ROA
	  	50%	 	.73
	 2) Growth in Core Deposits
	  	30%	 	15%
	 3) Efficiency Ratio
	  	20%	 	66.33%

  

  
 Appendix B 
  
 EXEMPT LEVEL 11 
  

																	
	 ROA
Goal =50%

	  	Award Based
on ROA

	 	 	Growth
in Core
Deposits = 30%

	  	Award Based
on Growth
in Deposits

	 	 	Effic. Ratio
Goal = 20%

	  	Award Based
On Effic. Ratio

	 	 	Total
Award

	 
	 0.580
	  	5.78	%	 	12.00	  	3.47	%	 	68.00	  	2.31	%	 	11.56	%
	 0.650
	  	8.66	%	 	13.50	  	5.20	%	 	67.00	  	3.46	%	 	17.32	%
	 0.730
	  	11.55	%	 	15.00	  	6.93	%	 	66.00	  	4.62	%	 	23.10	%
	 0.800
	  	14.44	%	 	16.50	  	8.66	%	 	65.00	  	5.77	%	 	28.87	%
	 0.880
	  	17.33	%	 	18.00	  	10.40	%	 	64.00	  	6.93	%	 	34.66	%

  
 EXEMPT LEVEL 10

  

																	
	 ROA
 Goal =50%

	  	 Award Based
 on ROA

	 	 	Growth
in Core
Deposits = 30%

	  	Award Based
on Growth
in Deposits

	 	 	Effic. Ratio
Goal = 20%

	  	Award Based
On Effic. Ratio

	 	 	Total
Award

	 
	 0.580
	  	5.78	%	 	12.00	  	3.47	%	 	68.00	  	2.31	%	 	11.56	%
	 0.650
	  	7.70	%	 	13.50	  	4.62	%	 	67.00	  	3.08	%	 	15.40	%
	 0.730
	  	9.63	%	 	15.00	  	5.78	%	 	66.00	  	3.85	%	 	19.26	%
	 0.800
	  	11.55	%	 	16.50	  	6.93	%	 	65.00	  	4.62	%	 	23.10	%
	 0.880
	  	13.48	%	 	18.00	  	8.09	%	 	64.00	  	5.39	%	 	26.96	%

  
 EXEMPT LEVELS 7-9

  

																	
	 ROA
Goal =50%

	  	 Award Based
 on ROA

	 	 	Growth
in Core
Deposits = 30%

	  	Award Based
on Growth
in Deposits

	 	 	Effic. Ratio
Goal = 20%

	  	Award Based
On Effic. Ratio

	 	 	Total
Award

	 
	 0.580
	  	3.85	%	 	12.00	  	2.31	%	 	68.00	  	1.54	%	 	7.70	%
	 0.650
	  	5.78	%	 	13.50	  	3.47	%	 	67.00	  	2.31	%	 	11.56	%
	 0.730
	  	7.70	%	 	15.00	  	4.62	%	 	66.00	  	3.08	%	 	15.40	%
	 0.800
	  	9.63	%	 	16.50	  	5.78	%	 	65.00	  	3.85	%	 	19.26	%
	 0.880
	  	11.55	%	 	18.00	  	6.93	%	 	64.00	  	4.62	%	 	23.10	%

  

  
 EXEMPT LEVELS 3 - 6

  

																	
	 ROA
 Goal =50%

	  	Award Based
on ROA

	 	 	Growth
in Core
Deposits = 30%

	  	Award Based
on Growth
in Deposits

	 	 	Effic. Ratio
Goal = 20%

	  	Award Based
On Effic. Ratio

	 	 	Total
Award

	 
	 0.580
	  	1.93	%	 	12.00	  	1.16	%	 	68.00	  	0.77	%	 	3.86	%
	 0.650
	  	3.85	%	 	13.50	  	2.31	%	 	67.00	  	1.54	%	 	7.70	%
	 0.730
	  	5.78	%	 	15.00	  	3.47	%	 	66.00	  	2.31	%	 	11.56	%
	 0.800
	  	7.70	%	 	16.50	  	4.62	%	 	65.00	  	3.08	%	 	15.40	%
	 0.880
	  	9.63	%	 	18.00	  	5.78	%	 	64.00	  	3.85	%	 	19.26	%

  
 NONEXEMPT LEVELS
3-10 
  

																	
	 ROA
 Goal =50%

	  	Award Based
on ROA

	 	 	Growth
in Core
Deposits = 30%

	  	 Award Based
on Growth
 in Deposits

	 	 	Effic. Ratio
Goal = 20%

	  	Award Based
On Effic. Ratio

	 	 	Total
Award

	 
	 0.580
	  	1.54	%	 	12.00	  	0.92	%	 	68.00	  	0.62	%	 	3.08	%
	 0.650
	  	2.12	%	 	13.50	  	1.27	%	 	67.00	  	0.85	%	 	4.24	%
	 0.730
	  	2.70	%	 	15.00	  	1.62	%	 	66.00	  	1.08	%	 	5.40	%
	 0.800
	  	3.27	%	 	16.50	  	1.96	%	 	65.00	  	1.31	%	 	6.54	%
	 0.880
	  	3.85	%	 	18.00	  	2.31	%	 	64.00	  	1.54	%	 	7.70	%

  

  
 UNITED BANK 
  
 West Springfield, Massachusetts 
  
 INCENTIVE PLAN 
  
 2005 
  

  
 UNITED BANK 
  
 West Springfield, Massachusetts 
  
 INCENTIVE PLAN 
  
 Table of Contents 
  

			
	 	  	Page

	 Introduction and Highlights of Incentive Plan for 2005
	  	1-2
		
	 Incentive Plan
	  	 
		
	 Section I - Definitions
	  	3   
		
	 Section II - Participation
	  	4   
		
	 Section III - Activating the Plan
	  	4   
		
	 Section IV - Calculation of Awards
	  	4   
		
	 Section V - Distribution of Awards
	  	5   
		
	 Section VI - Plan Administration
	  	5   
		
	 Section VII - Amendment, Modification, Suspension or Termination
	  	5   
		
	 Section VIII - Effective Date
	  	6   
		
	 Section IX - Employer Relations with Participants
	  	6   
		
	 Section X - Governing Law
	  	6   
		
	 Section XI - President’s Discretion
	  	6   
		
	 2005 Performance Goals
	  	Appendix A
		
	 Distribution of Awards
	  	Appendix B

  

  
 UNITED BANK 
  
 West Springfield, Massachusetts 
  
 Introduction and Highlights of 
 Incentive Plan for 2005 
  
 Thomas Warren and Associates has been retained by the United Bank to develop an incentive plan. It is important to examine the benefits which accrue to the organization
through the operation of the incentive plan. 
  

	 	•	 	Provides Motivation: The opportunity for incentive awards provides all employees with the impetus to “stretch” for challenging, yet attainable, goals.

  

	 	•	 	Provides Retention: by enhancing the bank’s competitive compensation posture. 

  

	 	•	 	Provides Team Building: by making the incentive award dependent on the attainment of bank goals, a “team orientation” is fostered among all employees.

  

	 	•	 	Provides Competitive Compensation Strategy: The implementation of incentive arrangements is common in the banking industry today. 

  

 - 1 - 

 The highlights of the incentive plan included in the following pages are as follows: 
  

	 	1.	The recommended plan is competitive compared with similar sized banks and the banking industry in general. 

  

	 	2.	The Board of Directors controls all aspects of the Plan. 

  

	 	3.	All employees are participants with the exception of Personal Bankers and Financial Services Representatives. 

  

	 	4.	The financial criteria necessary for plan operation consists of ROA, Growth in Core Deposits, and Efficiency Ratio Goals. 

  

	 	5.	Award distribution would be made during the first quarter of the following plan year. 

  

	 	6.	The categories of incentive plan participants are as follows: 

  

			
	 Position Level

	  	Range of Bonus Awards

	 Exempt 11
	  	0% - 45%
	 Exempt 10
	  	   0% - 37.5%
	 Exempt 7 - 9
	  	0% - 30%
	 Exempt 3 - 6
	  	   0% - 22.5%
	 Nonexempt 3 - 10
	  	   0% - 10.5%

  

 - 2 - 

  
 UNITED BANK 
 West Springfield, Massachusetts 
  
 The Board of Directors of United Bank has established this Incentive Plan. The purpose of the plan is to meet and exceed financial goals and to promote a superior
level of performance relative to the bank’s competition in its market area. Through payment of incentive compensation beyond base salaries, the plan provides reward for meeting and exceeding the bank’s financial goals as well as
recognition of individual achievements for plan participants. 
  
 SECTION I - DEFINITIONS 
  
 Various terms used in the plan are defined as follows: 
  
 Base Salary: the base salary at the end of the plan year, excluding any bonuses, contributions to employee benefit programs, or other compensation not designated as salary. 
  
 Board of Directors: The Board of Directors of United Bank. 

  
 President & CEO: President and CEO of United
Bank. 
  
 Performance Goals: Those pre-set objectives and
goals which are required to activate distribution of awards under the plan. 
  
 Compensation Committee: The Compensation Committee of the Board of Directors of the Bank. 
  
 Plan Participants: All employees of the bank with the exception of Personal Bankers and the Financial Services Representatives. 
  
 Plan Year: The calendar year. 
  

 - 3 - 

 SECTION II - ELIGIBILITY TO PARTICIPATE 
  
 To be eligible for an award under the plan, a plan participant must be in regular full-time,
reduced full-time or regular part-time service of the bank during the calendar year. If a plan participant leaves the employ of the bank during the plan year, he/she is not eligible to receive an award. However, if the active full-time service with
the bank of a participant in the plan is terminated by death, disability, or retirement, as defined by the United Bank Retirement Plan Summary Plan Descriptions, a pro-rated award will be granted based on active service during the plan year.
Pro-rated awards will also be granted for participants hired during the plan year, if the participant was on an approved leave of absence during the plan year and for those in a reduced full time or regular part time status. 
  
 SECTION III - ACTIVATING THE PLAN 
  
 The operation of the plan is predicated on attaining and exceeding performance goals. The
goals will consist of core deposit growth, total loan growth and a discretionary goal. The performance goals for the plan year are set forth in Appendix A. The plan will activate at .60 ROA for the entire plan. 
  
 SECTION IV - CALCULATION OF AWARDS 
  
 The Compensation Committee designates a rate of distribution for the award. The actual rate
of distribution is based upon bank performance as shown in the matrix (Appendix B). The full Board of Directors will approve the final award distributions. 
  

 - 4 - 

 SECTION V - DISTRIBUTION OF AWARDS 
  
 Distribution of awards will be made during the first quarter following the plan year.
Distribution of the incentive award must be approved by the Board of Directors. In the event of death, any approved award as outlined in Section II for distribution will become payable to the designated beneficiary of the participant as
recorded under the bank’s group life insurance program, or in the absence of a valid designation, to the participant’s estate. 
  
 SECTION VI - PLAN ADMINISTRATION 
  
 The Compensation Committee shall, with respect to the plan, have full power and authority to construe, interpret and manage, control and administer this plan, and to pass
and decide upon cases in conformity with the objectives of the plan under such rules as the Board of Directors of the bank may establish. 
  
 Any decision made or action taken by the Bank, the Board of Directors, or the Compensation Committee arising out of, or in connection with, the administration,
interpretation, and effect of the plan shall be at their absolute discretion and will be conclusive and binding on all parties. 
  
 No member of the Board of Directors, Compensation Committee, or employee of the bank shall be liable for any act or action hereunder, whether of omission or commission,
by a plan participant or employee or by any agent to whom duties in connection with the administration of the plan have been delegated in accordance with the provision of the plan. 
  
 SECTION VII - AMENDMENT, MODIFICATION, SUSPENSION OR TERMINATION 
  
 The bank reserves the right, by and through its Board of Directors to amend, modify,
suspend, reinstate or terminate all or part of the plan. Management will communicate to each participant any amendment, suspension or termination or any material modification of the plan. 
  

 - 5 - 

 SECTION VIII - EFFECTIVE DATE OF THE PLAN 
  
 The effective date of the plan shall be January 1, 2005 and the January 1 of each calendar
year for succeeding plan years. 
  
 SECTION IX -
EMPLOYER RELATION WITH PARTICIPANTS 
  
 Neither establishment nor the
maintenance of the plan shall be construed as conferring any legal rights upon any participant or any person for a continuation of employment, nor shall it interfere with the right of an employer to discharge any participant or otherwise deal with
him/her without regard to the existence of the plan. 
  
 SECTION X - GOVERNING LAW 
  
 Except to the extent pre-empted
under federal law, the provisions of the plan shall be construed, administered and enforced in accordance with the domestic internal law of the Commonwealth of Massachusetts. In the event of relevant changes in the Internal Revenue Code, related
rulings and regulations, or changes imposed by other regulatory agencies affecting the continued appropriateness of the plan and awards made thereunder, the Board may, at its sole discretion, accelerate or change the manner of payments of any unpaid
awards or amend the provisions of the plan. 
  
 SECTION XI - PRESIDENT’S DISCRETION 
  
 The President &
CEO will review the amounts to be awarded to individual participants in the incentive plan. To be eligible for a full award under the plan, a plan participant’s most recent performance appraisal must meet acceptable standards, defined as a
“Meets Most” performance rating. A pro-rated award of 50% will be allowed for a “Meets Some” performance rating. There will be no award if under a written warning at the time the awards are approved by the Board of Directors.

  
 The President may recommend to the Board of Directors an adjustment to a bonus
award for an individual if their performance warrants. Board of Directors may adjust the President & CEO’s bonus award. 
  

 - 6 - 

  
 APPENDIX A 
  
 UNITED BANK 
 West Springfield, Massachusetts 
  
 2005 Performance Goals 
  

					
	 	  	Weight

	 	2005 Goal

	 1) Growth in Core Deposits*
	  	25%	 	5%
	 2) Growth in Total Loans
	  	25%	 	10%
	 3) Discretionary**
	  	50%	 	100% performance

  

	*	already takes into account potential loss of core account dollars due to stock purchase 

  

	**	This goal will be an assessment by the Compensation Committee of the Board as to how the bank did in terms of working through the offering during 2005 

  

  
 Appendix B 
  
 EXEMPT LEVEL 11 
  

																		
	 Growth
in Core
Deposits =
Goal =25%

	  	Award Based
on Growth
in Deposits

	 	 	Growth
in Total
Loans=
Goal =25%

	  	Award Based
on Growth
in Total Loans

	 	 	Discretionary
Goal = 50%

	 	 	Award Based
On Discretionary

	 	 	Total
Award

	 
	 <4.00
	  	0.00	%	 	<8.00	  	0.00	%	 	<80	%	 	0.00	%	 	0.00	%
	 4.00
	  	3.75	%	 	8.00	  	3.75	%	 	80	%	 	7.50	%	 	15.00	%
	 4.50
	  	5.63	%	 	9.00	  	5.63	%	 	90	%	 	11.25	%	 	22.50	%
	 5.00
	  	7.50	%	 	10.00	  	7.50	%	 	100	%	 	15.00	%	 	30.00	%
	 5.50
	  	9.38	%	 	11.00	  	9.38	%	 	110	%	 	18.75	%	 	37.50	%
	 6.00
	  	11.25	%	 	12.00	  	11.25	%	 	120	%	 	22.50	%	 	45.00	%
	 >6.00
	  	11.25	%	 	>12.00	  	11.25	%	 	>120	%	 	22.50	%	 	45.00	%

  
 EXEMPT LEVEL 10

  

																		
	 Growth
in Core
Deposits =
Goal =25%

	  	Award Based
on Growth
in Deposits

	 	 	Growth
in Total
Loans=
Goal =25%

	  	Award Based
on Growth
in Total Loans

	 	 	Discretionary
Goal = 50%

	 	 	Award Based
On Discretionary

	 	 	Total
Award

	 
	 <4.00
	  	0.00	%	 	<8.00	  	0.00	%	 	<80	%	 	0.00	%	 	0.00	%
	 4.00
	  	3.13	%	 	8.00	  	3.13	%	 	80	%	 	6.25	%	 	12.50	%
	 4.50
	  	4.69	%	 	9.00	  	4.69	%	 	90	%	 	9.38	%	 	18.75	%
	 5.00
	  	6.25	%	 	10.00	  	6.25	%	 	100	%	 	12.50	%	 	25.00	%
	 5.50
	  	7.81	%	 	11.00	  	7.81	%	 	110	%	 	15.63	%	 	31.25	%
	 6.00
	  	9.38	%	 	12.00	  	9.38	%	 	120	%	 	18.75	%	 	37.50	%
	 >6.00
	  	9.38	%	 	>12.00	  	9.38	%	 	>120	%	 	18.75	%	 	37.50	%

  

  
 EXEMPT LEVELS 7 - 9

  

																		
	 Growth
in Core
Deposits =
Goal =25%

	  	Award Based
on Growth
in Deposits

	 	 	Growth
in Total
Loans=
Goal =25%

	  	Award Based
on Growth
in Total Loans

	 	 	Discretionary
Goal = 50%

	 	 	Award Based
On Discretionary

	 	 	Total
Award

	 
	 <4.00
	  	0.00	%	 	<8.00	  	0.00	%	 	<80	%	 	0.00	%	 	0.00	%
	 4.00
	  	2.50	%	 	8.00	  	2.50	%	 	80	%	 	5.00	%	 	10.00	%
	 4.50
	  	3.75	%	 	9.00	  	3.75	%	 	90	%	 	7.50	%	 	15.00	%
	 5.00
	  	5.00	%	 	10.00	  	5.00	%	 	100	%	 	10.00	%	 	20.00	%
	 5.50
	  	6.25	%	 	11.00	  	6.25	%	 	110	%	 	12.50	%	 	25.00	%
	 6.00
	  	7.50	%	 	12.00	  	7.50	%	 	120	%	 	15.00	%	 	30.00	%
	 >6.00
	  	7.50	%	 	>12.00	  	7.50	%	 	>120	%	 	15.00	%	 	30.00	%

  
 EXEMPT LEVELS 3 - 6

  

																		
	 Growth
in Core
Deposits =
Goal =25%

	  	Award Based
on Growth
in Deposits

	 	 	Growth
in Total
Loans=
Goal =25%

	  	Award Based
on Growth
in Total Loans

	 	 	Discretionary
Goal = 50%

	 	 	Award Based
On Discretionary

	 	 	Total
Award

	 
	 <4.00
	  	0.00	%	 	<8.00	  	0.00	%	 	<80	%	 	0.00	%	 	0.00	%
	 4.00
	  	1.88	%	 	8.00	  	1.88	%	 	80	%	 	3.75	%	 	7.50	%
	 4.50
	  	2.81	%	 	9.00	  	2.81	%	 	90	%	 	5.63	%	 	11.25	%
	 5.00
	  	3.75	%	 	10.00	  	3.75	%	 	100	%	 	7.50	%	 	15.00	%
	 5.50
	  	4.69	%	 	11.00	  	4.69	%	 	110	%	 	9.38	%	 	18.75	%
	 6.00
	  	5.63	%	 	12.00	  	5.63	%	 	120	%	 	11.25	%	 	22.50	%
	 >6.00
	  	5.63	%	 	>12.00	  	5.63	%	 	>120	%	 	11.25	%	 	22.50	%

  
 NONEXEMPT LEVELS
3-10 
  

																		
	 Growth
in Core
Deposits =
 Goal =25%

	  	Award Based
on Growth
in Deposits

	 	 	 Growth
in Total
Loans=
 Goal =25%

	  	Award Based
on Growth
in Total Loans

	 	 	Discretionary
Goal = 50%

	 	 	Award Based
On Discretionary

	 	 	Total
Award

	 
	 <4.00
	  	0.00	%	 	<8.00	  	0.00	%	 	<80	%	 	0.00	%	 	0.00	%
	 4.00
	  	0.88	%	 	8.00	  	0.88	%	 	80	%	 	1.75	%	 	3.50	%
	 4.50
	  	1.31	%	 	9.00	  	1.31	%	 	90	%	 	2.63	%	 	5.25	%
	 5.00
	  	1.75	%	 	10.00	  	1.75	%	 	100	%	 	3.50	%	 	7.00	%
	 5.50
	  	2.19	%	 	11.00	  	2.19	%	 	110	%	 	4.38	%	 	8.75	%
	 6.00
	  	2.63	%	 	12.00	  	2.63	%	 	120	%	 	5.25	%	 	10.50	%
	 >6.00
	  	2.63	%	 	>12.00	  	2.63	%	 	>120	%	 	5.25	%	 	10.50	%EXHIBIT 10.7

 Exhibit 10.7 
  
 DEFERRED INCOME AGREEMENT 
  
 DONALD G. HELLIWELL 
  
 UNITED CO-OPERATIVE BANK 
  
 SPRINGFIELD, MASSACHUSETTS 
  
 JANUARY 1, 1985

  

  
 DIRECTOR’S
COMPENSATION AGREEMENT 
  
 This Agreement is entered
into this first day of January, 1985, between UNITED CO-OPERATIVE BANK, 81 State Street, Springfield, Massachusetts 01103 (herein referred to as the “Bank”) and DONALD G. HELLIWELL, 1294 Western Avenue, West field, Massachusetts 01085
(herein referred to as the “Director”). 
  
 WITNESSETH 
  
 WHEREAS, the Bank
recognizes that the competent and faithful efforts of Director on behalf of the Bank have contributed significantly to the success and growth of the Bank; and 
  
 WHEREAS, the Bank values the efforts, abilities and accomplishments of the Director and recognizes that his services are
vital to its continued growth and profits in the futures; and 
  
 WHEREAS, the Bank desires to compensate the Director and retain his services for five years, if elected, to serve on the Board of Directors. Such compensation is set forth below; and 
  
 WHEREAS, the Director, in consideration of the foregoing, agrees to
continue to serve as a Director, if elected, 
  
 NOW, THEREFORE, it is mutually agreed as follows: 
  
 1. Compensation. The Bank agrees to pay Director the total sum of $75,930 payable in monthly installments of
$632.75 for 120 consecutive months, commencing on the first day of the month following Director’s 65th birthday. Payments to the Director will terminate when the 120 payments have been made or at the time of the Director’s death, whichever
occurs first. 
  
 2. Death of Director Before Age
65. In the event Director should die before reaching age 65 , the Bank agrees to pay to Director’s beneficiary (ies) designated in writing to the Bank, the sum of $632.75 per month for 120 consecutive months. Payments will begin on the
first day of the month following Director’s death. 
  
 3. Death of Director After Age 65. If the Director dies after age 65 prior to receiving the full 120 monthly installments, the remaining monthly installments will be paid to the Director’s designated beneficiary (ies). The
beneficiary (ies) shall receive all remaining monthly installments which the Director would have received until the total sum of $75,930 set forth in paragraph “1” is paid. If the Director fails to designate a beneficiary in writing to the
Bank, the balance of monthly installments at the time of his death shall be paid to the legal representative of the estate of the Director. 
  

 Page One 

 4. Termination of Service As A Director. If the Director, for any reason other than death,
fails to serve five consecutive years as a Director, he will receive monthly compensation beginning at age 65 on the basis that the number of full months served bears to the required number of 60 months times the compensation stated in paragraph
“1”. For example, if the Director serves only 60 months, he will be entitled to 36/60 or 60% of the compensation stated in paragraph “1”. 
  
 5. Suicide. No payments will be made to the Director’s beneficiary (ies) or to his estate in the event of
death by suicide during the first three years of this Agreement. 
  
 6. Status of Agreement. This Agreement does not constitute a contract of employment between the parties, nor shall any provision of this Agreement restrict the right of the Bank’s shareholders to replace the Director or the
right of the Director to terminate his service. 
  
 7.
Binding Effect. This Agreement shall be binding upon the parties hereto and upon the successors and assigns of the Bank, and upon the heirs and legal representatives of the Director. 
  
 8. Interruption of Service. The service of the Director shall not
be deemed to have been terminated or interrupted due to his absence from active service on account of illness, disability, during any authorised vacation or during temporary leaves of absence granted by the Bank for reasons of professional
advancement, education, health or government service, or during military leave for any period if the Director is elected to serve on the Board following such interruption. 
  
 9. Forfeiture of Compensation by Competition. The Director agrees that all rights to compensation following age 65
shall be forfeited by him if he engages in competition with the Bank, without the prior written consent of the Bank, within a radius of 50 miles of the main office of the Bank for a period of ten years, coinciding with the number of years that the
Director shall receive such compensation. 
  
 10.
Assignment of Rights. None of the rights to compensation under this Agreement are assignable by the Director or any beneficiary or designee of the Director and any attempt to anticipate, sell, transfer, assign, pledge, encumber or change
Director’s right to receive compensation, shall be void. 
  
 11. Status of Director’s Rights. The rights granted to the Director or any designee or beneficiary under this Agreement shall be solely those of an unsecured creditor of the Bank. 
  
 12. Amendments. This Agreement may be amended only by a written
Agreement signed by the parties. 
  

 Page Two 

 13. If the Bank shall acquire an insurance policy or any other asset in connection with the
liabilities assumed by it hereunder, it is expressly understood and agreed that neither director nor any beneficiary of Director shall have any right with respect to, or claim against, such policy or in the title to such other asset. Such policy or
asset shall not be deemed to be held under any trust for the benefit of Director or his beneficiaries or to be held in any way as collateral security for the fulfilling of the obligations of the Bank under this Agreement except as may be expressly
provided by the terms of such policy or other asset. It shall be, and remain, a general, unpledged, unrestricted asset of the Bank. 
  
 14. This Agreement shall be construed under and governed by the laws of the State of Massachusetts. 
  
 15. Interpretation. Wherever appropriate in this Agreement, words
used in the singular shall include the plural and the masculine shall include the feminine gender. 
  
 16. This Agreement shall be binding upon and inure to the benefit of any successor of the Bank and any such successor shall be deemed substituted for
the Bank under the terms of this Agreement. As used herein, the term “successor” shall include any person, corporation or other business entity which at any time, whether by merger, purchase or otherwise, acquires all or substantially all
of the stock, assets or business of the Bank. 
  
 IN
WITNESS HEREOF, the parties have signed this Agreement the day and year above written. 
  

											
	 	 	 	 	 	 	 UNITED CO-OPERATIVE BANK
	 	 
					
	(SEAL)	 	 	 	 BY
	 	 /s/ Burton L. Doble
	 	 
	 	 	 	 	 	 	 	 	 BURTON L. DOBLE, PRESIDENT
	 	 
					
	/s/ 	 	 	 	 	 	 /s/ Donald G. Helliwell
	 	 (SEAL)

	WITNESS	 	 	 	 	 	 DONALD G. HELLIWELL, DIRECTOR
	 	 

  

 Page Three

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