Document:

Form of ESOP Plan Agreement

 Exhibit 10.2 
  
 LEGACY BANKS 
  
 EMPLOYEE STOCK OWNERSHIP PLAN 
  
 EFFECTIVE AS OF                     , 2005

 LEGACY BANKS 
 EMPLOYEE STOCK OWNERSHIP PLAN 
  
 TABLE OF CONTENTS 
  

			
	 SECTION 1 INTRODUCTION
	  	1
	 SECTION 2 DEFINITIONS
	  	1
	 SECTION 3 ELIGIBILITY AND PARTICIPATION
	  	8
	 SECTION 4 CONTRIBUTIONS
	  	9
	 SECTION 5 PLAN ACCOUNTING
	  	11
	 SECTION 6 VESTING AND FORFEITURES
	  	17
	 SECTION 7 DISTRIBUTIONS
	  	19
	 SECTION 8 VOTING OF COMPANY STOCK AND TENDER OFFERS
	  	24
	 SECTION 9 THE COMMITTEE AND PLAN ADMINISTRATION
	  	25
	 SECTION 10 RULES GOVERNING BENEFIT CLAIMS
	  	28
	 SECTION 11 THE TRUST
	  	29
	 SECTION 12 ADOPTION, AMENDMENT AND TERMINATION
	  	30
	 SECTION 13 TOP-HEAVY PROVISIONS
	  	31
	 SECTION 14 EGTRRA
	  	32
	 SECTION 15 GENERAL PROVISIONS
	  	35

 SECTION 1 
 INTRODUCTION 
  
 1.01 NATURE OF THE
PLAN. 
  
 Effective as of
                    , 2005 (the “Effective Date”), Legacy Banks (the “Bank”) hereby establishes the Legacy Banks Employee
Stock Ownership Plan (the “Plan”) to enable Eligible Employees (as defined in Section 2.01(o) of the Plan) to acquire stock ownership interests in Legacy Bancorp, Inc. (the “Company”), the holding company of the Bank. The Bank
intends this Plan to be a tax-qualified stock bonus plan under Section 401(a) of the Internal Revenue Code of 1986, as amended (the “Code”), and an employee stock ownership plan within the meaning of Section 407(d)(6) of the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”), and Sections 409 and 4975(e)(7) of the Code. The Plan is designed to invest primarily in the common stock of the Company, which stock constitutes “qualifying employer
securities” within the meaning of Section 407(d)(5) of ERISA and Sections 409(l) and 4975(e)(8) of the Code. Accordingly, the Plan and Trust Agreement (as defined in Section 2.01(mm) of the Plan) shall be interpreted and applied in a manner
consistent with the Bank’s intent for it to be a tax-qualified plan designed to invest primarily in qualifying employer securities. 
  
 The Plan reflects certain provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”). The provisions related to EGTRRA are intended
as good faith compliance with EGTRRA and the guidance issued thereunder. To the extent any provision of the Plan was operated according to an effective date earlier than as required by law, then such date shall be the effective date with respect to
that provision of the Plan. 
  
 1.02 EMPLOYERS AND AFFILIATES. 

 
 The Bank and each of its Affiliates (as defined in Section 2.01(c) of the Plan) that,
with the consent of the Bank, adopt the Plan pursuant to the provisions of Section 12.01 of the Plan are collectively referred to as the “Employers” and individually as an “Employer.” The Plan shall be treated as a single plan
with respect to all participating Employers. 
  
 SECTION 2

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

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

  

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

  

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

  

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

  

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

  

	(f)	 “CHANGE IN CONTROL” means an event of a nature that: (i) would be required to be reported in response to Item 5.01(a) of the current report on Form 8-K,
as in effect on the date hereof, pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”); or (ii) results in a Change in Control of the Bank or the Holding Company within the meaning of the Change in
Bank Control Act and the Rules and Regulations promulgated by the Federal Deposit Insurance Corporation (“FDIC”) at 12 C.F.R. ss. 303.4(a) with respect to the Bank and the Rules and Regulations promulgated by the Office of Thrift
Supervision (“OTS”) (or its predecessor agency), with respect to the Holding Company, as in effect on the date of this Plan, or (iii) without limitation such a Change in Control shall be deemed to have occurred at such time as (A) any
“person” (as the term is used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Bank or the
Holding Company representing 20% or more of the Bank’s or the Holding Company’s outstanding securities except for any securities of the Bank purchased by the Holding Company in connection with the conversion of the Bank to the stock form
and any securities purchased by any tax qualified employee benefit plan of the Bank; or (B) individuals who constitute the Board of Directors on the date hereof (the “Incumbent Board”) cease for any reason to constitute at least a majority
thereof, provided that any person becoming a director subsequent to the date hereof whose election was approved by a vote of at least three-quarters of the directors comprising the Incumbent Board, or whose nomination for election by the Holding
Company’s stockholders was approved by the same Nominating Committee serving under an Incumbent Board, shall be, for purposes of this clause (B), considered as though he were a member of the Incumbent Board; or (C) a plan of reorganization,
merger, consolidation, sale of all or substantially all the assets of the Bank or the Holding Company or similar transaction occurs in which the Bank or Holding Company is not the resulting entity; or (D) solicitations of shareholders of the Holding
Company, by 

  

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someone other than the current management of the Holding Company, seeking stockholder approval of a plan of reorganization, merger or consolidation of the
Holding Company or Bank or similar transaction with one or more corporations as a result of which the outstanding shares of the class of securities then subject to the plan or transaction are exchanged for or converted into cash or property or
securities not issued by the Bank or the Holding Company shall be distributed; or (E) a tender offer is made for 20% or more of the voting securities of the Bank or the Holding Company. 

  

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

  

	(h)	“COMMITTEE” means the individual or individuals responsible for the administration of the Plan in accordance with Section 9 of the Plan. 

  

	(i)	“COMPANY” means Legacy Bancorp, Inc. and any entity which succeeds to the business of Legacy Bancorp, Inc. 

  

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

  

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

  

	(l)	“COMPENSATION” means: 

  

	 	(i)	An Employee’s base compensation as reported on form W-2 for federal tax purposes and paid during the plan year by the Employer. 

  

	 	(ii)	Compensation shall also include the amounts of any Employer contributions made pursuant to a salary reduction agreement entered into by the Participant and not includible in the
gross income of the Employee under Sections 125, 132(f), 402(e)(3), 402(h), 403(b), 414(h) or 457 of the Code. 

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

	(m)	 “DISABILITY” means a physical or mental condition of a Participant resulting from bodily injury, disease, or mental disorder which renders the Participant
incapable of continuing any gainful occupation and which condition constitutes total disability under 

  

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the federal Social Security Act. The Disability of a Participant shall be determined by the Plan Administrator, in its sole discretion.

  

	(n)	“EFFECTIVE DATE” means                     , 2005.

  

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

  

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

  

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

  

	(r)	“ENTRY DATE” means the first day of the payroll period coinciding with or next following the date the Employee satisfies the requirements for participation under Section
3.01 of the Plan. 

  

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

  

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

  

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

  

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

  

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

  

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

  

	(w)	“HOURS OF SERVICE” means: 

  

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

  

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

 

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

  

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

  

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

  

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

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

	 	(iv)	by reason of pregnancy of the Employee, 

  

 5 

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

  

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

  

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

  

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

  

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

  

	(z)	“NORMAL RETIREMENT AGE” means the later of a Participant’s attainment of age 65 or the fifth anniversary of the first day of the plan year in which the participant
commenced participation in the plan. 

  

	(aa)	“NORMAL RETIREMENT DATE” means the first day of the month coincident with or next following the Participant’s attainment of Normal Retirement Age.

  

	(bb)	“ONE YEAR BREAK IN SERVICE” means a 12 consecutive month period during which the Participant does not complete more than 500 Hours of Service. 

  

	(cc)	“OTHER INVESTMENTS ACCOUNT” means the account established and maintained in the name of each Participant or Beneficiary to reflect his share of the Trust Fund, other than
Company Stock. 

  

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

  

	(ee)	“PLAN” means this Legacy Banks Employee Stock Ownership Plan, as amended from time to time. 

  

	(ff)	“PLAN YEAR” means the calendar year. 

  

	(gg)	“RECOGNIZED ABSENCE” means a period for which: 

  

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

  

 6 

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

  

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

  

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

  

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

  

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

  

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

  

	(ll)	“TRUST” means the Legacy Banks Employee Stock Ownership Plan Trust created in connection with the establishment of the Plan. 

  

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

  

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

  

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

  

 7 

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

  

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

  

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

  
 SECTION 3 
 ELIGIBILITY AND PARTICIPATION 
  
 3.01 PARTICIPATION. 
  

	(a)	All Eligible Employees who participate in the Bank’s 401(k) plan on the date the Company first issues common stock pursuant to conversion of the mutual holding company from the
mutual to the stock form of organization (the “Conversion Date”) shall enter the Plan and become Participants on the later of the Effective Date or the date on which the Eligible Employee has completed three (3) months of Service for an
Employer. 

  

	(b)	An Eligible Employee who is first employed by an Employer after the Conversion Date shall become a Participant in the Plan on the later of (i) the Eligible Employee’s
attainment of 21 years of age; and (ii) the date upon which the Eligible Employee has completed three (3) months of Service for an Employer. 

  

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

  
 3.02 CERTAIN EMPLOYEES INELIGIBLE. 
  
 The
following Employees are ineligible to participate in the Plan: 
  

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

  

	(b)	Leased Employees within the meaning of Code section 414(n). 

  
 3.03 TRANSFER TO AND FROM ELIGIBLE EMPLOYMENT. 
  

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

  

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

  

 8 

	 	(ii)	the first Entry Date on which he could have become a Participant pursuant to Section 3.01 of the Plan. 

  

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

  
 3.04 PARTICIPATION AFTER REEMPLOYMENT. 
  

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

  

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

  
 3.05 PARTICIPATION NOT GUARANTEE OF EMPLOYMENT.

  
 Participation in the Plan does not constitute a guarantee or contract of
employment and will not give any Employee the right to be retained in the employ of the Bank or any of its Affiliates nor any right or claim to any benefit under the terms of the Plan unless such right or claim has specifically accrued under the
Plan. 
  
 SECTION 4 
 CONTRIBUTIONS 
  
 4.01 EMPLOYER CONTRIBUTIONS. 
  

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

  

	(b)	 EMPLOYER CONTRIBUTIONS FOR ACQUISITION LOANS. Each Plan Year, the Employers shall, subject to any regulatory prohibitions, contribute an amount of cash sufficient
to enable the Trustee to discharge any indebtedness incurred with respect to an Acquisition Loan pursuant to the terms of the Acquisition Loan. The Employers’ 

  

 9 

	 	 
obligation to make contributions under this Section 4.01(b) shall be reduced to the extent of any investment earnings attributable to such contributions and
any cash dividends paid with respect to Company Stock held by the Trustee in the Loan Suspense Account. If there is more than one Acquisition Loan, the Employers shall designate the one to which any contribution pursuant to this Section 4.01(b) is
to be applied. 

  
 4.02 LIMITATIONS ON CONTRIBUTIONS.

  
 In no event shall an Employer’s contributions made under Section
4.01 of the Plan for any Plan Year exceed the lesser of: 
  

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

  

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

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

  

 10 

 
to the sum of the payments of principal and interest on the Acquisition Loan for that Plan Year plus the total remaining payment of principal and interest
projected (or, if the requirements of Section 54.4975-7(b)(8)(ii) of the Treasury Regulations are met and the Employer so elects, principal payments only), on the Acquisition Loan over the duration of the Acquisition Loan repayment period, subject
to the provisions of Section 5.05 of the Plan. 
  
 4.04 CONDITIONS AS TO
CONTRIBUTIONS. 
  
 In addition to the provisions of Section 12.03 of the Plan
for the return of an Employer’s contributions in connection with a failure of the Plan to qualify initially under the Code, any amount contributed by an Employer due to a good faith mistake of fact, or based upon a good faith but erroneous
determination of its deductibility under Section 404 of the Code, shall be returned to the Employer within one year after the date on which the Employer originally made such contribution, or within one year after its nondeductibility has been
finally determined. However, the amount to be returned shall be reduced to take account of any adverse investment experience within the Trust in order that the balance credited to each Participant Account is not less than it would have been if the
contribution had never been made by the Employer. 
  
 4.05 EMPLOYEE
CONTRIBUTIONS. 
  
 Employee contributions are neither required nor permitted
under the Plan. 
  
 4.06 ROLLOVER CONTRIBUTIONS. 
  
 Rollover contributions to the Plan of assets from other tax-qualified retirement plans are
not permitted under the Plan. 
  
 4.07 TRUSTEE-TO-TRUSTEE TRANSFERS.

  
 Trustee-to-trustee transfers of assets from other tax-qualified
retirement plans are not permitted under the Plan. 
  
 SECTION 5

 PLAN ACCOUNTING 
  
 5.01 ACCOUNTING FOR ALLOCATIONS. 
  
 The Committee shall establish the Accounts (and sub-accounts, if deemed necessary) for each Participant, and the accounting procedures for the purpose of making
allocations to Participants’ Accounts as provided for in this Section 5. The Committee shall maintain adequate records of the cost basis of shares of Company Stock allocated to each Participant’s Company Stock Account. The Committee also
shall keep separate records of Financed Shares attributable to each Acquisition Loan and of contributions made by the Employers (and any earnings thereon) made for the purpose of enabling the Trustee to repay any Acquisition Loan. From time to time,
the Committee may modify its accounting procedures for the purpose of achieving equitable and nondiscriminatory allocations among the Accounts of Participants, in accordance with the provisions of this Section 5 and the applicable requirements of
the Code and ERISA. In 

  

 11 

 
accordance with Section 9 of the Plan, the Committee may delegate the responsibility for maintaining Accounts and records. 
  
 5.02 MAINTENANCE OF PARTICIPANTS’ COMPANY STOCK ACCOUNTS. 
  
 As of each Valuation Date, the Committee shall adjust the Company Stock Account of each
Participant to reflect activity during the Valuation Period as follows: 
  

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

  

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

  

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

  

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

  
 5.03 MAINTENANCE OF
PARTICIPANTS’ OTHER INVESTMENTS ACCOUNTS. 
  
 Except as otherwise
provided for under Section 5.08 of the Plan, as of each Valuation Date, the Committee shall adjust the Other Investments Account of each Participant to reflect activity during the Valuation Period as follows: 
  

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

  

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

  

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

  

 12 

	 	 
Participant’s Other Investments Account shall then be charged by the amount of cash used to purchase such Company Stock. In addition, any earnings on:

  

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

  

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

  

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

  

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

  
 5.04 ALLOCATION AND CREDITING OF EMPLOYER CONTRIBUTIONS. 
  

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

  

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

  

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

  

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

  

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

  

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

  

 13 

 5.05 LIMITATIONS ON ALLOCATIONS. 
  

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

  

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

  

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

  

	(d)	MULTIPLE DEFINED CONTRIBUTION PLANS. In any case where a Participant also participates in another defined contribution plan of the Bank or its Affiliates, the appropriate committee
of such other plan shall first reduce the after-tax contributions under any such plan, shall then reduce any elective deferrals under any such plan subject to Section 401(k) of the Code, shall then reduce all other contributions under any other such
plan and, if necessary, shall then reduce contributions under this Plan. 

  

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

  

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

  
 5.06 OTHER LIMITATIONS. 
  
 Aside from the limitations set forth in Section 5.05 of the Plan, in no event shall more than one-third of the Employer contributions to the Plan be allocated to the
Accounts of Highly Compensated Employees. In order to ensure that such allocations are not made, the Committee shall, beginning with the Participants whose Compensation exceeds the limit then in effect under Section 401(a)(17) of the Code, reduce
the amount of Compensation of such Highly Compensated Employees on a pro-rata basis per individual that would otherwise be taken into account for purposes of allocating benefits under Section 5.04 of the Plan. If, in order to satisfy this Section
5.06, any such Participant’s Compensation must be reduced to an amount that is 

  

 14 

 
lower than the Compensation amount of the next highest paid (based on such Participant’s Compensation) Highly Compensated Employee (the “breakpoint
amount”), then, for purposes of allocating benefits under Section 5.04 of the Plan, the Compensation of all concerned Participants shall be reduced to an amount not to exceed such breakpoint amount. 
  
 5.07 LIMITATIONS AS TO CERTAIN SECTION 1042 TRANSACTIONS. 
  
 To the extent that a shareholder of Company Stock sells qualifying Company Stock to the Plan
and elects (with the consent of the Bank) nonrecognition of gain under Section 1042 of the Code, no portion of the Company Stock purchased in such nonrecognition transaction (or other dividends or other income attributable thereto) may accrue or be
allocated during the nonallocation period (the ten (10) year period beginning on the later of the date of the sale of the qualified Company Stock, or the date of the Plan allocation attributable to the final payment of an Acquisition Loan incurred
in connection with such sale) for the benefit of: 
  

	(a)	the selling shareholder; 

  

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

  

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

  

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

  

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

  
 For purposes of this Section 5.07, Section 318(a) of the Code shall be applied without regard to the employee trust exception of Section
318(a)(2)(B)(i) of the Code. 
  
 5.08 ALLOCATIONS UPON TERMINATION PRIOR TO
SATISFACTION OF ACQUISITION LOAN. 
  

	(a)	 Notwithstanding any other provision of the Plan, in the event of a Change in Control, the Plan shall terminate as of the effective date of the Change in Control
and, as soon as practicable thereafter, the Trustee shall repay in full any outstanding Acquisition Loan. In connection with such repayment, the Trustee shall: (i) apply cash, if any, received by the Plan in connection with the transaction
constituting a Change in Control, with respect to the unallocated shares of Company Stock acquired with the proceeds of the Acquisition Loan, and (ii) to the extent additionally required to effect the repayment of the Acquisition Loan, obtain cash
through the sale of any stock or security received by the Plan in connection with such transaction, with respect to such unallocated shares of Company Stock. After repayment of the Acquisition Loan, all remaining shares of Company Stock held in the
Loan Suspense Account, all other stock or securities, and any cash proceeds from the sale or other disposition of any shares of Company Stock held in the Loan Suspense Account, shall be allocated among the Accounts of all Participants who were
employed by an Employer on the date immediately preceding the effective date of the Change in Control. Such allocations of shares or cash proceeds shall be credited as 

  

 15 

	 	 
earnings for purposes of Section 5.05 of the Plan and Section 415 of the Code, as of the effective date of the Change in Control, to the Account of each
Participant who is either in active Service with an Employer, or is on a Recognized Absence, on the date immediately preceding the effective date of the Change of Control (each an “Affected Participant”), in proportion to the opening
balances in their Company Stock Accounts as of the first day of the current Valuation Period. As of the effective date of a Change in Control, all Participant Accounts shall be fully vested and nonforfeitable. 

  

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

  
 5.09 DIVIDENDS. 
  

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

  

	(b)	CASH DIVIDENDS ON ALLOCATED SHARES. Dividends on Company Stock credited to Participants’ Accounts which are received by the Trustee in the form of cash shall, at the direction
of the Bank, either: 

  

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

  

	 	(ii)	be distributed immediately to the Participants; 

  

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

  

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

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

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

  

	 	(ii)	distributed in cash to the Participant; or 

  

 16 

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

  
 Dividends subject to an election under this paragraph (and any Company Stock acquired therewith pursuant to a Participant’s election)
shall at all times be fully vested. To the extent the Committee authorizes dividend elections pursuant to this paragraph, the Committee shall establish policies and procedures relating to Participant elections and, if applicable, the reinvestment of
cash dividends in Company Stock, which are consistent with guidance issued under Section 404(k) of the Code. 
  

	(c)	CASH DIVIDENDS ON UNALLOCATED SHARES. Dividends on Company Stock held in the Loan Suspense Account received by the Trustee in the form of cash shall be applied as soon as
practicable to payments of principal and interest under the Acquisition Loan incurred with the purchase of Company Stock. 

  

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

  

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

  

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

  
 SECTION 6 
 VESTING AND FORFEITURES

  
 6.01 DEFERRED VESTING IN ACCOUNTS. 
  

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

  

				
	 YEARS OF SERVICE

	  	VESTED PERCENTAGE

	 
	 less than one Year of Service
	  	0	%
	 one Year of Service
	  	20	%
	 two Years of Service
	  	40	%
	 three Years of Service
	  	60	%
	 four Years of Service
	  	80	%
	 five or more Years of Service
	  	100	%

  

 17 

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

 
 6.02 IMMEDIATE VESTING IN CERTAIN SITUATIONS. 
  

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

  

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

  

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

  

	 	(iii)	a Change in Control; or 

  

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

  
 6.03 TREATMENT OF FORFEITURES. 
  

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

  

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

  

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

  

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

  

 18 

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

 

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

  

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

  
 6.04 ACCOUNTING FOR FORFEITURES. 
  
 A forfeiture shall be charged to the Participant’s Account as of the first day of the first Valuation Period in which the forfeiture becomes certain pursuant to
Section 6.03 of the Plan. Except as otherwise provided in Section 6.03 of the Plan, a forfeiture shall be added to the contributions of the terminated Participant’s Employer which are to be credited to other Participants pursuant to Section 5
as of the last day of the Plan Year in which the forfeiture becomes certain. 
  
 6.05 VESTING UPON REEMPLOYMENT. 
  
 If a Participant incurs a One
Year Break in Service and again performs an Hour of Service, such Participant shall receive credit, for purposes of Section 6.01 of the Plan, for his Years of Service prior to his One Year Break in Service. 
  
 SECTION 7 
 DISTRIBUTIONS 
  
 7.01 DISTRIBUTION OF BENEFIT UPON A TERMINATION OF EMPLOYMENT. 
  

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

  

	(b)	 Notwithstanding paragraph (a) of this Section 7.01, if the balance credited to a Participant’s Accounts exceeds, at the time such benefit was distributable,
$1,000, his benefits shall not be paid before the latest of his 65th birthday or the tenth anniversary of the year in which he commenced participation in the Plan, unless he elects an early payment date in a written election filed with the
Committee. Such an election is not valid unless it is made after the Participant has received the required notice under Section 1.411(a)-11(c) of the Treasury Regulations that provides a general description of the material features of a lump sum
distribution and the Participant’s right to defer receipt of 

  

 19 

	 	 
his benefits under the Plan. The notice shall be provided no less than 30 days and no more than 90 days before the first day on which all events have
occurred which entitle the Participant to such benefit. Written consent of the Participant to the distribution generally may not be made within 30 days of the date the Participant receives the notice and shall not be made more than 90 days from the
date the Participant receives the notice. However, a distribution may be made less than 30 days after the notice provided under Section 1.411(a)-11(c) of the Treasury Regulations is given, if: 

  

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

  

	 	(ii)	the Participant, after receiving the notice, affirmatively elects a distribution. A Participant may modify such an election at any time, provided any new benefit payment date is at
least 30 days after a modified election is delivered to the Committee. 

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

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

  

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

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

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

  

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

  

	 	(i)	acknowledge the effect of the election; 

  

 20 

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

  

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

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

	(c)	The Committee shall, from time to time, take whatever steps it deems appropriate to keep informed of each Participant’s marital status. Each Employer shall provide the
Committee with the most reliable information in the Employer’s possession regarding its Participants’ marital status, and the Committee may, in its discretion, require a notarized affidavit from any Participant as to his marital status.
The Committee, the Plan, the Trustee, and the Employers shall be fully protected and discharged from any liability to the extent of any benefit payments made as a result of the Committee’s good faith and reasonable reliance upon information
obtained from a Participant as to the Participant’s marital status. 

  
 7.04 DELAY IN BENEFIT DETERMINATION. 
  
 If the Committee is
unable to determine the benefits payable to a Participant or Beneficiary on or before the latest date prescribed for payment pursuant to this Section 7, the benefits shall in any event be paid within 60 days after they can first be determined.

  
 7.05 OPTIONS TO RECEIVE AND SELL COMPANY STOCK. 
  

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

  

	(b)	 Any Participant who receives Company Stock pursuant to this Section 7.05, and any person who has received Company Stock from the Plan or from such a Participant by
reason of the Participant’s death or incompetency, by reason of divorce or separation from the Participant, or by reason of a rollover distribution described in Section 402(c) of the Code, shall have the right to require the Employer which
issued the Company Stock to purchase the Company Stock for its current fair market value (hereinafter referred to as the “put right”). The put right shall be exercisable by written notice to the Committee during the first 60 days after the
Company Stock is distributed by the Plan, and, if not exercised in that period, during the first 60 days in the following Plan Year after the Committee has communicated to the Participant its determination as to the Company 

  

 21 

	 	 
Stock’s current fair market value. If the put right is exercised, the Trustee may, if so directed by the Committee in its sole discretion, assume the
Employer’s rights and obligations with respect to purchasing the Company Stock. However, the put right shall not apply to the extent that the Company Stock, at the time the put right would otherwise be exercisable, may be sold on an established
market in accordance with federal and state securities laws and regulations. 

  

	(c)	With respect to a put right, the Employer or the Trustee, as the case may be, may elect to pay for the Company Stock in equal periodic installments, not less frequently than
annually, over a period not longer than five years from the 30th day after the put right is exercised pursuant to paragraph (b) of this Section 7.05, with adequate security and interest at a reasonable rate on the unpaid balance, all such terms to
be set forth in a promissory note delivered to the seller with normal terms as to acceleration upon any uncured default. 

  

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

  
 7.06 RESTRICTIONS ON DISPOSITION OF COMPANY STOCK.

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

 22 

 7.07 DIRECT TRANSFER OF ELIGIBLE PLAN DISTRIBUTIONS. 
  

	(a)	Notwithstanding any provision of the Plan to the contrary that would otherwise limit a distributee’s election under this Section, a distributee (as defined below) may elect to
have any portion of an eligible rollover distribution (as defined below) paid directly to an eligible retirement plan (as defined below) specified by the distributee in a direct rollover (as defined below). A “distributee” includes a
Participant or former Participant. In addition, the Participant’s or former Participant’s surviving spouse and the Participant’s or former Participant’s spouse or former spouse who is the alternate payee under a qualified
domestic relations order, as defined in Section 414(p) of the Code, are distributees with regard to the interest of the spouse or former spouse. For purposes of this Section 7.07 a “direct rollover” is a payment by the Plan to the eligible
retirement plan specified by the distributee. 

  

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

  

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

  

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

  

 23 

	 	 
surviving spouse, an eligible retirement plan means an individual retirement account or individual retirement annuity. 

  
 SECTION 8 
 VOTING OF COMPANY STOCK AND TENDER OFFERS 
  
 8.01 VOTING OF COMPANY STOCK. 
  

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

  

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

  

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

  

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

  

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

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

 24 

 SECTION 9 
 THE COMMITTEE AND PLAN ADMINISTRATION 
  
 9.01 IDENTITY OF THE COMMITTEE. 
  
 The Committee shall consist
of three or more individuals selected by the Bank. Any individual, including a director, trustee, shareholder, officer, or Employee of an Employer, shall be eligible to serve as a member of the Committee. The Bank shall have the power to remove any
individual serving on the Committee at any time without cause upon ten days’ written notice to such individual and any individual may resign from the Committee at any time without reason upon ten days’ written notice to the Bank. The Bank
shall notify the Trustee of any change in membership of the Committee. 
  
 9.02
AUTHORITY OF COMMITTEE. 
  

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

  

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

  

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

  

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

  

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

  

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

  

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

  
 9.03 DUTIES OF COMMITTEE. 
  

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

  

 25 

	 	 
required with respect to the Plan under ERISA, the Code and other applicable laws and regulations. 

  

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

  

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

  

	(d)	If the valuation of any Company Stock is not established by reported trading on a generally recognized public market, then the Committee shall have the exclusive authority and
responsibility to determine the value of the Company Stock for all purposes under the Plan. Such value shall be determined as of each Valuation Date and on any other date as of which the Trustee purchases or sells Company Stock in a manner
consistent with Section 4975 of the Code and the Treasury Regulations issued thereunder. The Committee shall use generally accepted methods of valuing stock of similar corporations for purposes of arm’s length business and investment
transactions, and in this connection the Committee shall obtain, and shall be protected in relying upon, the valuation of Company Stock as determined by an independent appraiser (as defined in Section 401(a)(28)(c) of the Code).

  
 9.04 COMPLIANCE WITH ERISA AND THE CODE. 
  
 The Committee shall perform all acts necessary to ensure the Plan’s compliance with
ERISA and the Code. Each individual member of the Committee shall discharge his duties in good faith and in accordance with the applicable requirements of ERISA and the Code. 
  

 26 

 9.05 ACTION BY COMMITTEE. 
  
 All actions of the Committee shall be governed by the affirmative vote of a majority of the total number of Committee members. The members
of the Committee may meet informally and may take any action without meeting as a group. 
  
 9.06 EXECUTION OF DOCUMENTS. 
  
 Any
instrument to be executed by the Committee may be signed by any member of the Committee. 
  
 9.07 ADOPTION OF RULES. 
  
 The Committee
shall adopt such rules and regulations of uniform applicability as it deems necessary or appropriate for the proper operation, administration and interpretation of the Plan. 
  
 9.08 RESPONSIBILITIES TO PARTICIPANTS. 
  
 The Committee shall determine which Employees qualify to participate in the Plan. The Committee shall furnish to each Eligible Employee whatever summary plan
descriptions, summary annual reports, and other notices and information that may be required under ERISA. The Committee also shall determine when a Participant or his Beneficiary qualifies for the payment of benefits under the Plan. The Committee
shall furnish to each such Participant or Beneficiary whatever information is required under ERISA or the Code (or is otherwise appropriate) to enable the Participant or Beneficiary to make whatever elections may be available pursuant to Section 7,
and the Committee shall provide for the payment of benefits in the proper form and amount from the Trust. The Committee may decide in its sole discretion to permit modifications of elections and to defer or accelerate benefits to the extent
consistent with the terms of the Plan, applicable law, and the best interests of the individuals concerned. 
  
 9.09 ALTERNATIVE PAYEES IN EVENT OF INCAPACITY. 
  
 If the Committee finds at any time that an individual qualifying for benefits under this Plan is a minor or is incompetent, the Committee may direct the benefits to be paid, in the case of a minor, to his parents, his legal guardian, a
custodian for him under the Uniform Transfers to Minors Act, or the person having actual custody of him, or, in the case of an incompetent, to his spouse, his legal guardian, or the person having actual custody of him. The Committee and the Trustee
shall not be obligated to inquire as to the actual use of the funds by the person receiving them under this Section 9.09, and any such payment shall completely discharge the obligations of the Plan, the Trustee, the Committee, and the Employers to
the extent of the payment. 
  
 9.10 INDEMNIFICATION BY EMPLOYERS.

  
 Except as separately agreed upon in writing, the Committee, and any
member or employee of the Committee, shall be indemnified and held harmless by the Employers, jointly and severally, to the fullest extent permitted by law, against any and all costs, damages, expenses, and liabilities reasonably incurred by or
imposed upon the Committee or such individual in connection with any claim made against the Committee or such individual, or in which the Committee or such 

  

 27 

 
individual may be involved by reason of being, or having been, the Committee, or a member or employee of the Committee, to the extent such amounts are not
paid by insurance. 
  
 9.11 ABSTENTION BY INTERESTED MEMBER. 
  
 Any member of the Committee who is also a Participant in the Plan shall take no part in any
determination specifically relating to his own participation or benefits under the Plan, unless an abstention would render the Committee incapable of acting on the matter. 
  
 SECTION 10 
 RULES GOVERNING BENEFIT CLAIMS 
  
 10.01 CLAIM FOR BENEFITS.

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

	(a)	each specific reason for the denial; 

  

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

  

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

  

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

  
 10.03 CLAIMS REVIEW PROCEDURE. 
  
 Within 60 days after a Participant or Beneficiary receives notice from the Committee that his claim for benefits has been denied in any respect, he may file with the
Committee a written notice of appeal setting forth his reasons for disputing the Committee’s determination. In connection with his appeal, the Participant or Beneficiary or his representative may inspect or purchase copies of pertinent
documents and records to the extent not inconsistent with other Participants’ and Beneficiaries’ rights of privacy. Within 60 days after receiving a notice of 

  

 28 

 
appeal from a prior determination (or within 120 days, if special circumstances require an extension of time and written notice of the extension is given to
the Participant or Beneficiary and his representative within 60 days after receiving the notice of appeal), the Committee shall furnish to the Participant or Beneficiary and his representative, if any, a written statement of the Committee’s
final decision with respect to his claim, including the reasons for such decision and the particular Plan provisions upon which it is based. 
  
 SECTION 11 
 THE TRUST 

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

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

  

 29 

 
to comply with Section 401(a)(28)(B) of the Code. The Committee may, in its discretion, permit a transfer of a portion of the Participant’s Accounts to
the Legacy Banks SBERA 401(k) Plan in order to satisfy this Section 11.04, provided such investments comply with Section 401(a)(28)(B) of the Code and such transfer is not otherwise prohibited under the Code or ERISA. The Trustee shall comply with
any investment directions received from Participants in accordance with the procedures adopted from time to time by the Committee under this Section 11.04. 
  
 SECTION 12 
 ADOPTION, AMENDMENT AND
TERMINATION 
  
 12.01 ADOPTION OF PLAN BY OTHER EMPLOYERS. 

 
 With the consent of the Bank, any entity may become a participating Employer under the
Plan by: 
  

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

  

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

  

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

  
 12.02 ADOPTION OF PLAN BY SUCCESSOR. 
  
 In the event that any Employer shall be reorganized by way of merger, consolidation,
transfer of assets or otherwise, so that an entity other than an Employer shall succeed to all or substantially all of the Employer’s business, the successor entity may be substituted for the Employer under the Plan by adopting the Plan and
becoming a party to the Trust Agreement. Contributions by the Employer shall be automatically suspended from the effective date of any such reorganization until the date upon which the substitution of the successor entity for the Employer under the
Plan becomes effective. If, within 90 days following the effective date of any such reorganization, the successor entity shall not have elected to become a party to the Plan, or if the Employer shall adopt a plan of complete liquidation other than
in connection with a reorganization, the Plan shall be automatically terminated with respect to Employees of the Employer as of the close of business on the 90th day following the effective date of the reorganization, or as of the close of business
on the date of adoption of a plan of complete liquidation, as the case may be. 
  
 12.03 PLAN ADOPTION SUBJECT TO QUALIFICATION. 
  
 Notwithstanding
any other provision of the Plan, the adoption of the Plan and the execution of the Trust Agreement are conditioned upon their being determined initially by the Internal Revenue Service to meet the qualification requirements of Section 401(a) of the
Code, so that the Employers may deduct currently for federal income tax purposes their contributions to the Trust and so that the Participants may exclude the contributions from their gross income and recognize income only when they receive
benefits. In the event that this Plan is held by the Internal Revenue Service not to qualify initially under Section 401(a) of the Code, the Plan may be amended retroactively to the earliest date permitted by the Code and the applicable Treasury

  

 30 

 
Regulations in order to secure qualification under Section 401(a) of the Code. If this Plan is held by the Internal Revenue Service not to qualify initially
under Section 401(a) of the Code either as originally adopted or as amended, each Employer’s contributions to the Trust under this Plan (including any earnings thereon) shall be returned to it and this Plan shall be terminated. In the event
that this Plan is amended after its initial qualification, and the Plan, as amended, is held by the Internal Revenue Service not to qualify under Section 401(a) of the Code, the amendment may be modified retroactively to the earliest date permitted
by the Code and the applicable Treasury Regulations in order to secure approval of the amendment under Section 401(a) of the Code. 
  
 12.04 RIGHT TO AMEND OR TERMINATE. 
  

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

  

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

  

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

  
 SECTION 13 
 TOP-HEAVY PROVISIONS 
  
 13.01 TOP-HEAVY PROVISIONS. 
  
 If, as of the last day of the first Plan Year, or thereafter, if as of the day next preceding the beginning of any Plan Year (the “Determination Date”), the
Plan is a “top-heavy plan” 

  

 31 

 
(determined in accordance with the provisions of Section 416(g) of the Code), that is, the aggregate present value of the accrued benefits and account
balances of all “Key Employees” (within the meaning of Section 416(i) of the Code, and for this purpose using the definition of Compensation, as modified under Section 5.05(b) of the Plan) and their Beneficiaries, exceeds 60% of the
aggregate present value of the accrued benefits and account balances of all employees and their beneficiaries, the provision specified in this Section 13 will automatically become effective as of the first day of the Plan Year. This calculation
shall be made in accordance with Section 416(g) of the Code, taking into consideration plans which are considered part of the Aggregation Group. The term “Aggregation Group” shall include each plan of the Bank or any of its Affiliates that
includes a Key Employee and each plan of the Bank or any of its Affiliates that allows the Plan to meet the requirements of Section 401(a)(4) of the Code or Section 410 of the Code and may include any other plan of the Bank or any of its Affiliates,
if the Aggregation Group would continue to meet the requirements of Sections 401(a)(4) and 410 of the Code. 
  
 13.02 PLAN MODIFICATIONS UPON BECOMING TOP-HEAVY. 
  

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

  

	 	(i)	3% of his Compensation for the Plan Year; and 

  

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

  

	(b)	The preceding provision will remain in effect for the period in which the Plan is top-heavy. If, for any particular year thereafter, the Plan is no longer top-heavy, the provisions
contained in this Section 13.02 shall cease to apply, except that any previously vested portion of any Account balance shall remain nonforfeitable. 

  
 SECTION 14 
 EGTRRA 
  
 14.01 General 
  

	 	1.	This Section 14 reflects certain provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”). It is intended as good faith compliance with the
requirements of EGTRRA and is to be construed in accordance with EGTRRA and guidance issued thereunder. Except as otherwise provided, the provisions of this Section 14 shall be effective as of the first day of the first Plan Year beginning after
December 31, 2001, and 

  

	 	2.	The provisions of this Section 14 shall supersede the provisions of the Plan to the extent those provisions are inconsistent with the provisions of this Section 14.

  

 32 

 14.02 Limitations on Contributions 
  

	 	1.	Effective date. This Section 14.02 shall be effective for limitation years beginning after December 31, 2001. 

  

	 	2.	Maximum annual addition. The annual addition that may be contributed or allocated to a Participant’s Accounts under the Plan for any limitation year shall not exceed the
lesser of: 

  

	 	(a)	$40,000, as adjusted for increases in the cost-of-living under section 415(d) of the Code, or 

  

	 	(b)	100 percent of the Participant’s compensation, within the meaning of section 415(c)(3) of the Code, for the limitation year. 

  
 The compensation limit referred to in (b) shall not apply to any contribution for medical
benefits after separation from service (within the meaning of section 401(h) or section 419A(f)(2) of the Code) which is otherwise treated as an annual addition. 
  
 14.03 Increase in Compensation Limit 
  
 The annual compensation of each Participant taken into account in determining allocations for any Plan Year beginning after December 31, 2001, shall not exceed $200,000,
as adjusted for cost-of-living increases in accordance with section 401(a)(17)(B) of the Code. Annual compensation means compensation during the Plan Year or such other consecutive 12-month period over which compensation is otherwise determined
under the Plan (the determination period). The cost-of-living adjustment in effect for a calendar year applies to annual compensation for the determination period that begins with or within such calendar year. 
  
 14.04 Modification of Top-Heavy Rules. 
  

	 	1.	Effective date. This Section 14.04 shall apply for purposes of determining whether the Plan is a top-heavy plan under section 416(g) of the Code for Plan Years beginning
after December 31, 2001, and whether the Plan satisfies the minimum benefits requirements of section 416(c) of the Code for such years. This Section 14.04 amends Section 13 of the Plan. 

  

	 	2.	Determination of top-heavy status. 

  

	 	2.1	 Key employee. Key employee means any employee or former employee (including any deceased employee) who at any time during the Plan Year that includes the
determination date was an officer of the employer having annual compensation greater than $130,000 (as adjusted under section 416(i)(1) of the Code for Plan Years beginning after December 31, 2002), a 5-percent owner of the employer, or a 1-percent
owner of the employer having annual compensation of more than $150,000. For this purpose, annual compensation means compensation within the meaning of section 415(c)(3) of the Code. The determination of who is a key employee will 

  

 33 

	 	 
be made in accordance with section 416(i)(1) of the Code and the applicable regulations and other guidance of general applicability issued thereunder.

  

	 	2.2	Determination of present values and amounts. This subsection 2.2 shall apply for purposes of determining the present values of accrued benefits and the amounts of account
balances of employees as of the determination date. 

  

	 	2.2.1 	Distributions during year ending on the determination date. The present values of accrued benefits and the amounts of account balances of an employee as of the determination
date shall be increased by the distributions made with respect to the employee under the Plan and any plan aggregated with the Plan under section 416(g)(2) of the Code during the 1-year period ending on the determination date. The preceding sentence
shall also apply to distributions under a terminated plan which, had it not been terminated, would have been aggregated with the Plan under section 416(g)(2)(A)(i) of the Code. In the case of a distribution made for a reason other than separation
from service, death, or disability, this provision shall be applied by substituting “5-year period” for “1-year period.” 

  

	 	2.2.2 	Employees not performing services during year ending on the determination date. The accrued benefits and accounts of any individual who has not performed services for the
employer during the 1-year period ending on the determination date shall not be taken into account. 

  

	 	3.	Minimum benefits. 

  

	 	3.1	Matching contributions. Employer matching contributions shall be taken into account for purposes of satisfying the minimum contribution requirements of section 416(c)(2) of the Code
and the Plan. The preceding sentence shall apply with respect to matching contributions under the Plan or, if the Plan provides that the minimum contribution requirement shall be met in another plan, such other plan. Employer matching contributions
that are used to satisfy the minimum contribution requirements shall be treated as matching contributions for purposes of the actual contribution percentage test and other requirements of section 401(m) of the Code. 

  
 14.05 Direct Rollovers of Plan Distributions 
  

	 	1.	Effective date. This Section 14.05 shall apply to distributions made after December 31, 2001. 

  

 34 

	 	2.	Modification of definition of eligible retirement plan. For purposes of the direct rollover provisions in Section 7.07 of the Plan, an eligible retirement plan shall also
mean an annuity contract described in section 403(b) of the Code and an eligible plan under section 457(b) of the Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political
subdivision of a state and which agrees to separately account for amounts transferred into such plan from this plan. The definition of eligible retirement plan shall also apply in the case of a distribution to a surviving spouse, or to a spouse or
former spouse who is the alternate payee under a qualified domestic relation order, as defined in section 414(p) of the Code. 

  

	 	3.	Modification of definition of eligible rollover distribution to exclude hardship distributions. For purposes of the direct rollover provisions in Section 7.07 of the Plan,
any amount that is distributed on account of hardship shall not be an eligible rollover distribution and the distributee may not elect to have any portion of such a distribution paid directly to an eligible retirement plan. 

 

	 	4.	Modification of definition of eligible rollover distribution to include after-tax employee contributions. For purposes of the direct rollover provisions in Section 7.07 of
the Plan, a portion of a distribution shall not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions which are not includible in gross income. However, such portion may be transferred
only to an individual retirement account or annuity described in section 408(a) or (b) of the Code, or to a qualified defined contribution plan described in section 401(a) or 403(a) of the Code that agrees to separately account for amounts so
transferred, including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible. 

  
 SECTION 15 
 GENERAL PROVISIONS 
  
 15.01 NONASSIGNABILITY OF BENEFITS. 
  
 The interests of
Participants and other persons entitled to benefits under the Plan shall not be subject to the claims of their creditors and may not be voluntarily or involuntarily assigned, alienated, pledged, encumbered, sold, or transferred. The prohibitions set
forth in this Section 15.01 shall also apply to any judgment, decree, or order (including approval of a property or settlement agreement) which relates to the provision of child support, alimony, or property rights to a present or former spouse,
child, or other dependent of a Participant pursuant to a domestic relations order, unless such judgment, decree or order is determined to be a “qualified domestic relations order” as defined in Section 414(p) of the Code. 
  

 35 

 15.02 LIMIT OF EMPLOYER LIABILITY. 
  
 The liability of the Employers with respect to Participants and other persons entitled to benefits under the Plan shall be limited to making
contributions to the Trust from time to time, in accordance with Section 4 of the Plan. 
  
 15.03 PLAN EXPENSES. 
  
 All expenses incurred by the Committee
or the Trustee in connection with administering the Plan and Trust shall be paid by the Trustee from the Trust Fund to the extent the expenses have not been paid or assumed by the Employer. 
  
 15.04 NONDIVERSION OF ASSETS. 
  
 Except as provided in Sections 5.05 and 15.03 of the Plan, under no circumstances shall any
portion of the Trust Fund be diverted to or used for any purpose other than the exclusive benefit of Participants and their Beneficiaries prior to the satisfaction of all liabilities under the Plan. 
  
 15.05 SEPARABILITY OF PROVISIONS. 
  
 If any provision of the Plan is held to be invalid or unenforceable, the other provisions of
the Plan shall not be affected but shall be applied as if the invalid or unenforceable provision had not been included in the Plan. 
  
 15.06 SERVICE OF PROCESS. 
  
 The agent for the service of process upon the Plan shall be the Chairman of the Board of the Bank and the Trustee, or such other person as may be designated from time to
time by the Bank. 
  
 15.07 GOVERNING LAW. 
  
 The Plan is established under, and its validity, construction and effect shall be governed
by the laws of the State of Massachusetts to the extent those laws are not preempted by federal law, including the provisions of ERISA. 
  
 15.08 SPECIAL RULES FOR PERSONS SUBJECT TO SECTION 16(b) REQUIREMENTS. 
  
 Notwithstanding anything herein to the contrary, any former Participant who is subject to the provisions of Section 16(b) of the Securities Exchange Act of 1934, who
becomes eligible to again participate in the Plan, may not become a Participant prior to the date that is six months from the date such former Participant terminated participation in the Plan. In addition, any person subject to the provisions of
Section 16(b) of the Securities Exchange Act of 1934 Act receiving a distribution of Company Stock from the Plan must hold such Company Stock for a period of six months, commencing with the date of distribution. However, this restriction will not
apply to Company Stock distributions made in connection with death, retirement, Disability or termination of employment, or made pursuant to the terms of a qualified domestic relations order. 
  

 36 

 15.09 MILITARY SERVICE. 
  

Notwithstanding any other provision of this Plan to the contrary, contributions, benefits and Service credit with respect to qualified military service will be
provided in accordance with Section 414(u) of the Code. 
  
 IN
WITNESS WHEREOF, the Bank has caused this Plan to be signed by the President of the Bank on this          day of
                    , 2005. 
  

			
	 LEGACY BANKS

		
	 By:
	 	 

			
	 Name:
	 	 

			
	 Its:
	 	 

  

 37Form of Employment Agreement - J. Williar Dunlaevy

 Exhibit 10.4.1 
  
 LEGACY BANKS 
 EMPLOYMENT AGREEMENT 
  
 This AGREEMENT
(“Agreement”) is made effective as of                     , 2005, by and among Legacy Banks (the “Bank”), a
Massachusetts-chartered savings bank, with its principal administrative office at 99 North Street, Pittsfield, Massachusetts, 01202, Legacy Bancorp, Inc., a corporation organized under the laws of the State of Delaware, the holding company for the
Bank (the “Holding Company”), and J. Williar Dunlaevy (“Executive”). 
  
 WHEREAS, the Bank wishes to assure itself of the services of Executive for the period provided in this Agreement; and 
  
 WHEREAS, Executive is willing to serve in the employ of the Bank on a full-time basis for said period. 
  
 NOW, THEREFORE, in consideration of the mutual covenants herein contained,
and upon the other terms and conditions hereinafter provided, the parties hereby agree as follows: 
  

	1.	POSITION AND RESPONSIBILITIES. 

  
 During the period of his employment hereunder, Executive agrees to serve as Chief Executive Officer and Chairman of the Board of Directors of the Bank. Executive shall
render administrative and management services to the Bank such as are customarily performed by persons situated in a similar executive capacity. During said period, Executive also agrees to serve, if elected, as an officer and director of the
Holding Company or any subsidiary of the Bank. 
  

	2.	TERMS AND DUTIES. 

  
 (a) The period of Executive’s employment under this Agreement shall be deemed to have commenced as of the date first above written and shall continue
for a period of thirty-six (36) full calendar months thereafter. Commencing on the first anniversary date of this Agreement, and continuing on each anniversary thereafter, the Agreement shall automatically renew for a successive term of three (3)
years, unless either party gives notice to the other party at least sixty (60) days prior to the expiration of the initial or any renewal term that this Agreement shall not renew. 
  
 (b) During the period of Executive’s employment hereunder, except for periods of absence occasioned by illness,
reasonable vacation periods, and reasonable leaves of absence, Executive shall devote substantially all his business time, attention, skill, and efforts to the faithful performance of his duties hereunder including activities and services related to
the organization, operation and management of the Bank and participation in community and civic organizations; provided, however, that, with the approval of the board of directors of the Bank (“Board”), as evidenced by a resolution of such
Board, from time to time, Executive may serve, or continue to serve, on the boards of directors of, and hold any other offices or positions in, companies or organizations, which, in such Board’s judgment, will not present any conflict of

  

 1 

 
interest with the Bank, or materially affect the performance of Executive’s duties pursuant to this Agreement. 
  
 (c) Notwithstanding anything herein to the contrary, Executive’s
employment with the Bank may be terminated by the Bank or Executive during the term of this Agreement, subject to the terms and conditions of this Agreement. 
  

	3.	COMPENSATION AND REIMBURSEMENT. 

  
 Executive shall receive compensation and reimbursement under this Agreement, as follows: 
  
 (a) The Bank shall pay Executive as compensation a salary of not less than $315,600 per year (“Base Salary”)
payable in accordance with the normal payroll practices of the Bank. Base Salary shall include any amounts of compensation deferred by Executive under any tax-qualified retirement or welfare benefit plan or any other deferred compensation
arrangement maintained by the Bank. During the period of this Agreement, Executive’s Base Salary shall be reviewed at least annually with the Board making its first review no later than one year from the date of this Agreement. Such review
shall be conducted by the Board or by a committee of the Board, delegated such responsibility by the Board. The committee or the Board may increase Executive’s Base Salary at any time during this Agreement and the resulting annual salary
attributable to such increase shall become the “Base Salary” for purposes of this Agreement. In addition to the Base Salary provided in this Section 3(a), the Bank shall also provide Executive, at no premium cost to Executive, with all
such other benefits as are provided uniformly to permanent full-time employees of the Bank. 
  
 (b) Executive shall be entitled to participate in an equitable manner with all other executive officers of the Bank in discretionary bonuses as authorized and declared by the Board to executive employees. No other
compensation provided for in this Agreement shall be deemed a substitute for Executive’s right to participate in such bonuses when and as declared by the Board. 
  
 (c) Executive shall be entitled to participate in any employee benefit plans, arrangements and perquisites substantially
equivalent to those in which Executive was participating or otherwise deriving benefit from immediately prior to the beginning of the term of this Agreement, and the Bank will not, without Executive’s prior written consent, make any changes in
such plans, arrangements or perquisites which would materially adversely affect Executive’s rights or benefits thereunder; except to the extent such changes are made applicable to all participants on a non-discriminatory basis. Without limiting
the generality of the foregoing provisions of this Subsection (d), Executive shall be entitled to participate in or receive benefits under all plans relating to stock options, restricted stock awards, stock purchases, pension, thrift, supplemental
retirement, profit-sharing, employee stock ownership, group life insurance, medical and other health and welfare coverage, education, cash or stock bonuses that are now or hereafter made available by the Bank in the future to its senior executives
and key management employees, subject to and on a basis consistent with the terms, conditions and overall administration of such plans and arrangements. Nothing paid to Executive under any such plan or arrangement will be deemed to be in lieu of
other compensation to which Executive is entitled under this Agreement. 
  

 2 

 (d) In addition to the Base Salary provided for by paragraph (a) of this Section 3 and other compensation
and benefits provided for by paragraphs (b), (c) and (d) of this Section 3, the Bank shall pay or reimburse Executive for all reasonable travel and other reasonable expenses incurred by Executive performing his obligations under this Agreement and
may provide such additional compensation in such form and such amounts as the Board may from time to time determine. 
  
 (e) Executive shall be provided an appropriate automobile owned or leased and insured by the Bank for his business use. The Executive’s annual dues
and reasonable business expenses related to the Bank’s business at the Country Club of Pittsfield shall also be reimbursed by the Bank. Executive shall also be entitled to the benefits provided under the Supplemental Executive Retirement
Agreement between the Bank and the Employee as of January 1, 2004, or any successor thereto, and such fringe benefits as the Bank may provide to other executives of the Bank. In addition, during the term of this Agreement the Bank shall reimburse
the Executive for the premiums on Savings Bank Life Insurance Company of Massachusetts Policy Number 377283261 covering the life of Executive with a death benefit of $1,500,000 (the “Premium Reimbursement”), and the Bank shall pay to the
Executive, on or prior to the date on which the Executive must pay income taxes on the Premium Reimbursement, an additional amount (the “Gross-Up Payment”) such that the net amount retained by the Executive, after deduction of any Federal,
state and local income and employment taxes upon the Premium Reimbursement and the Gross-Up Payment, shall be equal to the Premium Reimbursement. 
  

	4.	PAYMENTS TO EXECUTIVE UPON AN EVENT OF TERMINATION. 

  
 (a) Upon the occurrence of an Event of Termination (as herein defined) during the Executive’s term of employment under this Agreement, the provisions
of this Section shall apply. As used in this Agreement, an “Event of Termination” shall mean and include any one or more of the following: (i) the termination by the Bank or the Holding Company of Executive’s full-time employment
hereunder for any reason other than a termination governed by Section 5(a) hereof, or Termination for Cause, as defined in Section 7 hereof; (ii) Executive’s resignation from the Bank’s employ upon any (A) failure to elect or reelect or to
appoint or reappoint Executive as Chairman of the Board of Directors and Chief Executive Officer of the Holding Company, unless consented to by Executive, (B) a material change in Executive’s function, duties, or responsibilities, which change
would cause Executive’s position to become one of lesser responsibility, importance, or scope from the position and attributes thereof described in Section 1, above, unless consented to by Executive, (C) a relocation of Executive’s
principal place of employment by more than 30 miles from its location at the effective date of this Agreement, unless consented to by Executive, (D) a material reduction in the benefits and perquisites to Executive from those being provided as of
the effective date of this Agreement, unless consented to by Executive, (E) a liquidation or dissolution of the Bank or Holding Company, or (F) breach of this Agreement by the Bank. Upon the occurrence of any event described in clauses (A), (B),
(C), (D), (E) or (F), above, Executive shall have the right to elect to terminate his employment under this Agreement by resignation upon not less than sixty (60) days prior written notice given within six full months after the event giving rise to
said right to elect. 
  
 (b) Upon the occurrence of an Event of
Termination, on the Date of Termination, as defined in Section 8, the Bank shall be obligated to pay Executive, or, in the event of his 

  

 3 

 
subsequent death, his beneficiary or beneficiaries, or his estate, as the case may be an amount equal to the sum of: 
  
 (i) the Base Salary and bonuses, in accordance with Sections 3(a) and 3(b),
respectively, that would have been paid to Executive for the remaining term of this Agreement had the Event of Termination not occurred; plus 
  
 (ii) the value, as calculated by a recognized firm customarily performing such valuation, of any stock options, which, as of the Date of Termination, have
been granted to Executive but are not exercisable by Executive and the value of any restricted stock awards which have been granted to Executive, but in which Executive does not have a non-forfeitable or fully-vested interest as of the Date of
Termination; 
  
 provided, however: that any payments pursuant to this subsection
and subsection 4(c), below, shall not, in the aggregate, exceed three (3) times Executive’s average annual compensation (as defined in Section 5(a) of this Agreement) for the five (5) most recent taxable years that Executive has been employed
by the Bank or such lesser number of years in the event that Executive shall have been employed by the Bank for less than five (5) years. In the event the Bank is not in compliance with its minimum capital requirements or if such payments pursuant
to this subsection (b) would cause the Bank’s capital to be reduced below its minimum regulatory capital requirements, such payments shall be deferred until such time as the Bank or successor thereto is in capital compliance. At the election of
Executive, which election is to be made prior to an Event of Termination, such payments shall be made in a lump sum as of Executive’s Date of Termination. In the event that no election is made, payment to Executive will be made on a monthly
basis in approximately equal installments during the remaining term of the Agreement. Such payments shall not be reduced in the event Executive obtains other employment following termination of employment. 
  
 (c) Upon the occurrence of an Event of Termination, the Bank will cause to be
continued life, medical, dental and disability coverage substantially identical to the coverage maintained by the Bank or the Holding Company for Executive prior to his termination at no premium cost to Executive, except to the extent such coverage
may be changed in its application to all Bank or Holding Company employees. Such coverage shall cease upon the expiration of the remaining term of this Agreement. 
  

	5.	CHANGE IN CONTROL. 

  
 (a) For purposes of this Agreement, a “Change in Control” shall mean an event of a nature that: (i) would be required to be reported in response
to Item 5.01(a) of the current report on Form 8-K, as in effect on the date hereof, pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”); or (ii) results in a Change in Control of the Bank or the
Holding Company within the meaning of the Change in Bank Control Act and the Rules and Regulations promulgated by the Federal Deposit Insurance Corporation (“FDIC”) at 12 C.F.R. ss. 303.4(a) with respect to the Bank and the Rules and
Regulations promulgated by the Office of Thrift Supervision (“OTS”) (or its predecessor agency), with respect to the Holding Company, as in effect on the date of this Agreement, or (iii) without limitation such a Change in Control shall be
deemed to have occurred at such time as (A) any “person” (as the term is used in 

  

 4 

 
Sections 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Bank or the Holding Company representing 20% or more of the Bank’s or the Holding Company’s outstanding securities except for any securities of the Bank purchased by the Holding Company in connection with
the conversion of the Bank to the stock form and any securities purchased by any tax qualified employee benefit plan of the Bank; or (B) individuals who constitute the Board of Directors on the date hereof (the “Incumbent Board”) cease for
any reason to constitute at least a majority thereof, provided that any person becoming a director subsequent to the date hereof whose election was approved by a vote of at least three-quarters of the directors comprising the Incumbent Board, or
whose nomination for election by the Holding Company’s stockholders was approved by the same Nominating Committee serving under an Incumbent Board, shall be, for purposes of this clause (B), considered as though he were a member of the
Incumbent Board; or (C) a plan of reorganization, merger, consolidation, sale of all or substantially all the assets of the Bank or the Holding Company or similar transaction occurs in which the Bank or Holding Company is not the resulting entity;
or (D) solicitations of shareholders of the Holding Company, by someone other than the current management of the Holding Company, seeking stockholder approval of a plan of reorganization, merger or consolidation of the Holding Company or Bank or
similar transaction with one or more corporations as a result of which the outstanding shares of the class of securities then subject to the plan or transaction are exchanged for or converted into cash or property or securities not issued by the
Bank or the Holding Company shall be distributed; or (E) a tender offer is made for 20% or more of the voting securities of the Bank or the Holding Company. 
  
 (b) If a Change in Control has occurred pursuant to Section 5(a) or the Board has determined that a Change in Control has occurred, Executive shall be
entitled to the benefits provided in paragraphs (c), and (d) of this Section 5 upon his subsequent termination of employment at any time during the term of this Agreement due to: (1) Executive’s dismissal or (2) Executive’s voluntary
resignation following any demotion, loss of title, office or significant authority or responsibility, material reduction in annual compensation or benefits or relocation of his principal place of employment by more than 30 miles from its location
immediately prior to the Change in Control, unless such termination is because of his death, disability, retirement or Termination for Cause. 
  
 (c) Upon Executive’s entitlement to benefits pursuant to Section 5(b), the Bank shall pay Executive, or in the event of his subsequent death, his
beneficiary or beneficiaries, or his estate, as the case may be, an amount equal to the greater of: (1) the Base Salary and bonuses in accordance with Sections 3(a) and 3(b), respectively, that would have been paid to Executive for the payments due
for the remaining term of the Agreement had the event described in Subsection (b) of this Section 5 not occurred, plus the value, as calculated by a recognized firm customarily performing such valuation, of any stock options, which, as of the Date
of Termination, have been granted to Executive, but are not exercisable by Executive and the value of restricted stock awards or related rights which have been granted to Executive, but which Executive does not have a non-forfeitable or fully-vested
interest as of the Date of Termination and all benefits, including health insurance, in accordance with Section 3(d) that would have been provided to Executive for the remaining term of this Agreement had the event described in Subsection (b) of
this Section 5 not occurred; or (2) three (3) times Executive’s “Average Annual Compensation” (as defined herein) for the five (5) most recent taxable years that Executive has been employed 

  

 5 

 
by the Bank or such lesser number of years in the event that Executive shall have been employed by the Bank for less than five (5) years. In determining
Executive’s “Average Annual Compensation” annual compensation shall include Base Salary and any other taxable income earned by Executive in connection with employment with the Bank or Holding Company, including but not limited to,
amounts related to granting, vesting or exercise of restricted stock awards and stock options, commissions, bonuses, pension and/or profit sharing plan contributions or benefits (whether or not taxable), severance payments, retirement benefits,
directors or committee fees and fringe benefits paid or to be paid to Executive in any such year and payment of any expense items without accountability or business purpose or that do not meet the Internal Revenue Service requirements for
deductibility by the Bank. 
  
 In the event the Bank is not in
compliance with its minimum capital requirements or if such payments would cause the Bank’s capital to be reduced below its minimum regulatory capital requirements, such payments shall be deferred until such time as the Bank or successor
thereto is in capital compliance. At the election of Executive, which election is to be made prior to a Change in Control, such payment shall be made in a lump sum as of Executive’s Date of Termination. In the event that no election is made,
payment to Executive will be made in approximately equal installments on a monthly basis over a period of thirty-six (36) months following Executive’s termination. Such payments shall not be reduced in the event Executive obtains other
employment following termination of employment. 
  
 (d) Upon
Executive’s entitlement to benefits pursuant to Section 5(b), the Bank will cause to be continued life, medical, dental and disability coverage substantially identical to the coverage maintained by the Bank for Executive prior to his severance
at no premium cost to Executive, except to the extent that such coverage may be changed in its application for all Bank employees on a non-discriminatory basis. Such coverage and payments shall cease upon the expiration of thirty-six (36) months
following the Date of Termination. 
  

	6.	CHANGE OF CONTROL RELATED PROVISIONS 

  
 If any payment or benefit made or provided to the Executive under this Agreement or under any plan, program or other arrangement of the Bank or any affiliated entity,
separately or in the aggregate with other such payments and benefits (a “Payment”) results in the Executive being subject to the excise tax under Section 4999 of the Internal Revenue Code of 1986, as amended (or any successor or similar
provision), then the Bank shall pay to the Executive, prior to the time that such tax is payable by the Executive, an additional amount of cash (the “Additional Amount”) such that the net amount of all payments and benefits received by the
Executive under this Agreement or under any plan, program or other arrangement of the Bank or any affiliated entity after paying all applicable taxes thereon, including on such Additional Amount, shall be equal to the next after-tax amount of
payments and benefits that the Executive would have received if Section 4999 were not applicable. 
  

	7.	TERMINATION FOR CAUSE. 

  
 The term “Termination for Cause” shall mean termination because of Executive’s personal dishonesty, incompetence, willful misconduct, any breach of fiduciary duty involving personal profit, intentional
failure to perform stated duties, willful violation of any law, rule or regulation 

  

 6 

 
(other than traffic violations or similar offenses), a violation of the Legacy Banks Code of Conduct dated February 3, 2005, as amended from time to time, or
final cease-and-desist order or material breach of any provision of this Agreement. Notwithstanding the foregoing, Executive shall not be deemed to have been Terminated for Cause unless and until there shall have been delivered to him a Notice of
Termination which shall include a copy of a resolution duly adopted by the affirmative vote of not less than a majority of the members of the Board at a meeting of the Board called and held for that purpose (after reasonable notice to Executive and
an opportunity for him, together with counsel, to be heard before the Board), finding that in the good faith opinion of the Board, Executive was guilty of conduct justifying Termination for Cause and specifying the particulars thereof in detail.

  
 Executive shall not have the right to receive compensation or other benefits
for any period after the Date of Termination for Cause. During the period beginning on the date of the Notice of Termination for Cause pursuant to Section 8 hereof through the Date of Termination for Cause, stock options and related limited rights
granted to Executive under any stock option plan shall not be exercisable nor shall any unvested awards granted to Executive under any stock benefit plan of the Bank, the Holding Company or any subsidiary or affiliate thereof, vest. 
  
 At the Date of Termination for Cause, such stock options and related limited rights and any
unvested awards shall become null and void and shall not be exercisable by or delivered to Executive at any time subsequent to such Termination for Cause. 
  

	8.	NOTICE. 

  
 (a) Any purported termination by the Bank or by Executive shall be communicated by Notice of Termination to the other party hereto. For purposes of this Agreement, a “Notice of Termination” shall mean a
written notice which shall indicate the specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive’s employment under
the provision so indicated. 
  
 (b) “Date of
Termination” shall mean the date specified in the Notice of Termination (which, in the case of a Termination for Cause, shall not be less than thirty days from the date such Notice of Termination is given.). 
  
 (c) If, within thirty (30) days after any Notice of Termination is given, the
party receiving such Notice of Termination notifies the other party that a dispute exists concerning the termination, the Date of Termination shall be the date on which the dispute is finally determined, either by mutual written agreement of the
parties, by a binding arbitration award, or by a final judgment, order or decree of a court of competent jurisdiction (the time for appeal therefrom having expired and no appeal having been perfected) and, provided further, that the Date of
Termination shall be extended by a notice of dispute only if such notice is given in good faith and the party giving such notice pursues the resolution of such dispute with reasonable diligence. Notwithstanding the pendency of any such dispute, in
the event Executive is terminated for reasons other than Termination for Cause, the Bank will continue to pay Executive his Base Salary in effect when the notice giving rise to the dispute was given until the earlier of: 1) the resolution of the
dispute in accordance with this Agreement or 2) the expiration of the remaining 

  

 7 

 
term of this Agreement as determined as of the Date of Termination. Amounts paid under this Section are in addition to all other amounts due under this
Agreement and shall not be offset against or reduce any other amounts due under this Agreement. 
  

	9.	POST-TERMINATION OBLIGATIONS. 

  
 All payments and benefits to Executive under this Agreement shall be subject to Executive’s compliance with this Section 9 for one (1) full year after the earlier of
the expiration of this Agreement or termination of Executive’s employment with the Bank. Executive shall, upon reasonable notice, furnish such information and assistance to the Bank as may reasonably be required by the Bank in connection with
any litigation in which it or any of its subsidiaries or affiliates is, or may become, a party. 
  

	10.	NON-COMPETITION AND NON-DISCLOSURE OF BANK BUSINESS. 

  
 (a) Upon any termination of Executive’s employment hereunder pursuant to Section 4 hereof, Executive agrees not to compete with the Bank for a period
of one (1) year following such termination in any city, town or county in which Executive’s normal business office is located and 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 Board. Executive agrees that during such period and within said cities, towns and counties, Executive shall not work for or advise, consult
or otherwise serve with, directly or indirectly, any entity whose business materially competes with the depository, lending or other business activities of the Bank. The parties hereto, recognizing that irreparable injury will result to the Bank,
its business and property in the event of Executive’s breach of this Subsection 10(a) agree that in the event of any such breach by Executive, the Bank, will be entitled, in addition to any other remedies and damages available, to an injunction
to restrain the violation hereof by Executive, Executive’s partners, agents, servants, employees and all persons acting for or under the direction of Executive. 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. 
  
 (b) Executive recognizes and acknowledges that the knowledge of the business activities and plans for business activities of the Bank and affiliates
thereof, as it may exist from time to time, is a valuable, special and unique asset of the business of the Bank. Executive will not, during or after the term of his employment, disclose any knowledge of the past, present, planned or considered
business activities of the Bank or affiliates thereof to any person, firm, corporation, or other entity for any reason or purpose whatsoever. Notwithstanding the foregoing, Executive may disclose any knowledge of banking, financial and/or economic
principles, concepts or ideas which are not solely and exclusively derived from the business plans and activities of the Bank. Further, Executive may disclose information regarding the business activities of the Bank to the Massachusetts
Commissioner of Banks and the Federal Deposit Insurance Corporation (“FDIC”) pursuant to a formal regulatory request. In the event of a breach or threatened breach by Executive of the provisions of this Section, the Bank will be entitled
to an injunction restraining Executive from disclosing, in whole or in part, the knowledge of the past, present, planned or considered business activities of the Bank or affiliates thereof, or from rendering any services to any person, firm,
corporation or other entity to whom 

  

 8 

 
such knowledge, in whole or in part, has been disclosed or is threatened to be disclosed. 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. 
  

	11.	SOURCE OF PAYMENTS. 

  
 (a) All payments provided in this Agreement shall be timely paid in cash or check from the general funds of the Bank subject to Section 12(b). The Holding
Company, however, unconditionally guarantees payment and provision of all amounts and benefits due hereunder to Executive and, if such amounts and benefits due from the Bank are not timely paid or provided by the Bank, such amounts and benefits
shall be paid or provided by the Holding Company. 
  
 (b)
Notwithstanding any provision herein to the contrary, to the extent that payments and benefits, as provided by this Agreement, are paid to or received by Executive under the Employment Agreement dated
                    , 2005, between Executive and the Holding Company, such compensation payments and benefits paid by the Holding Company
will be subtracted from any amounts due simultaneously to Executive under similar provisions of this Agreement. Payments pursuant to this Agreement and the Holding Company Agreement shall be allocated in proportion to the services rendered and time
expended on such activities by Executive as determined by the Holding Company and the Bank. 
  

	12.	EFFECT ON PRIOR AGREEMENTS AND EXISTING BENEFITS PLANS. 

  
 This Agreement contains the entire understanding between the parties hereto and supersedes any prior employment agreement between the Bank or any predecessor of the Bank
and Executive, except that this Agreement shall not affect or operate to reduce any benefit or compensation inuring to Executive of a kind elsewhere provided. No provision of this Agreement shall be interpreted to mean that Executive is subject to
receiving fewer benefits than those available to him without reference to this Agreement. 
  

	13.	NO ATTACHMENT. 

  
 (a) Except as required by law, no right to receive payments under this Agreement shall be subject to anticipation, commutation, alienation, sale,
assignment, encumbrance, charge, pledge, or hypothecation, or to execution, attachment, levy, or similar process or assignment by operation of law, and any attempt, voluntary or involuntary, to affect any such action shall be null, void, and of no
effect. 
  
 (b) This Agreement shall be binding upon, and inure to
the benefit of, Executive and the Bank and their respective successors and assigns. 
  

	14.	MODIFICATION AND WAIVER. 

  
 (a) This Agreement may not be modified or amended except by an instrument in writing signed by the parties hereto. 
  

 9 

 (b) No term or condition of this Agreement shall be deemed to have been waived, nor shall there be any
estoppel against the enforcement of any provision of this Agreement, except by written instrument of the party charged with such waiver or estoppel. No such written waiver shall be deemed a continuing waiver unless specifically stated therein, and
each such waiver shall operate only as to the specific term or condition waived and shall not constitute a waiver of such term or condition for the future as to any act other than that specifically waived. 
  

	15.	SEVERABILITY. 

  
 If, for any reason, any provision of this Agreement, or any part of any provision, is held invalid, such invalidity shall not affect any other provision of this Agreement or any part of such provision not held so
invalid, and each such other provision and part thereof shall to the full extent consistent with law continue in full force and effect. 
  

	16.	HEADINGS FOR REFERENCE ONLY. 

  
 The headings of sections and paragraphs herein are included solely for convenience of reference and shall not control the meaning or interpretation of any of the
provisions of this Agreement. 
  

	17.	GOVERNING LAW. 

  
 The validity, interpretation, performance and enforcement of this Agreement shall be governed by the laws of the Commonwealth of Massachusetts applicable to contracts entered into and to be performed entirely within
the Commonwealth of Massachusetts. 
  

	18.	ARBITRATION. 

  
 Any dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration, conducted before a panel of three arbitrators sitting in a location selected by Executive
within fifty (50) miles from the location of the Bank, in accordance with the rules of the American Arbitration Association then in effect. Judgment may be entered on the arbitrator’s award in any court having jurisdiction; provided, however,
that Executive shall be entitled to seek specific performance of his right to be paid until the Date of Termination during the pendency of any dispute or controversy arising under or in connection with this Agreement. 
  
 In the event any dispute or controversy arising under or in connection with Executive’s
termination is resolved in favor of Executive, whether by judgment, arbitration or settlement, Executive shall be entitled to the payment of all back-pay, including salary, bonuses and any other cash compensation, fringe benefits and any
compensation and benefits due Executive under this Agreement. 
  

	19.	PAYMENT OF COSTS AND LEGAL FEES. 

  
 All reasonable costs and legal fees paid or incurred by Executive pursuant to any dispute or question of interpretation relating to this Agreement shall be paid or
reimbursed by the Bank if Executive is successful on the merits pursuant to a legal judgment, arbitration or settlement. 
  

 10 

	20.	INDEMNIFICATION. 

  
 (a) The Bank shall provide Executive (including his heirs, executors and administrators) with coverage under a standard directors’ and officers’
liability insurance policy at its expense and shall indemnify Executive (and his heirs, executors and administrators) as permitted under federal law against all expenses and liabilities reasonably incurred by him in connection with or arising out of
any action, suit or proceeding in which he may be involved by reason of his having been a director or officer of the Bank (whether or not he continues to be a director or officer at the time of incurring such expenses or liabilities), such expenses
and liabilities to include, but not be limited to, judgments, court costs and attorneys’ fees and the cost of reasonable settlements. 
  
 (b) Any payments made to Executive pursuant to this Section are subject to and conditioned upon compliance with 12 U.S.C. Section 1828(k), 12 C.F.R. Part
359 and 12 C.F.R. Section 545.121 and any rules or regulations promulgated thereunder. 
  

	21.	SUCCESSOR TO THE BANK. 

  
 The Bank shall require any successor or assignee, whether direct or indirect, by purchase, merger, consolidation or otherwise, to all or substantially all 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.

  

	22.	COMPLIANCE WITH SECTION 409A OF THE CODE. 

  
 To the extent applicable, it is intended that this Agreement comply with the provisions of Section 409A of the Code, so as to prevent the inclusion in gross income of any
amounts payable or benefits provided hereunder in a taxable year that is prior to the taxable year or years in which such amounts or benefits would otherwise actually be distributed, provided or otherwise made available to the Executive. This
Agreement shall be construed, administered, and governed in a manner consistent with this intent. Any provision that would cause any amount payable or benefit provided under this Agreement to be includable in the gross income of the Executive under
Section 409A(a)(1) of the Code shall have no force and effect unless and until amended to cause such amount or benefit to not be so includable (which amendment may be retroactive to the extent permitted by Section 409A of the Code and may be made by
the Bank without the consent of the Executive). In particular, to the extent the Executive becomes entitled to receive a payment or a benefit upon an event that does not constitute a permitted distribution event under Section 409A(a)(2) of the Code,
then notwithstanding anything to the contrary in this Agreement, such payment or benefit will be made or provided to the Executive on the earlier of (i) the Executive’s “separation from service” with the Bank (determined in accordance
with Section 409A of the Code); provided however, that if the Executive is a “specified employee” (within the meaning of Section 409A of the Code), the Executive’s date of payment shall be made on the date which is 6 months after the
date of the Executive’s separation of service with the Bank or (ii) the Executive’s death. Any reference in this Agreement to Section 409A of the Code shall also include any proposed, temporary or final regulations, or any other guidance,

  

 11 

 
promulgated with respect to such Section by the U.S. Department of the Treasury or the Internal Revenue Service. 
  
 IN WITNESS WHEREOF, Legacy Banks and Legacy Bancorp, Inc. have caused this
Agreement to be executed and their seals to be affixed hereunto by their duly authorized officers and directors, and Executive has signed this Agreement, on the      day of
                    , 2005. 
  

					
	 ATTEST:
	 	 	 	 LEGACY BANKS

			
	  	 	 	 	  
	Corporate Secretary	 	 	 	 For the Entire Board of Directors

			
	 [SEAL]
	 	 	 	 
			
	 ATTEST:
	 	 	 	 LEGACY BANCORP, INC.

			
	  	 	 	 	  
	Corporate Secretary	 	 	 	 For the Entire Board of Directors

			
	 [SEAL]
	 	 	 	 
			
	 WITNESS:
	 	 	 	 EXECUTIVE

			
	  	 	 	 	  
	 	 	 	 	J. Williar Dunlaevy
			
	  	 	 	 	  

  

 12

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