Item 1.01. Entry into a Material Definitive Agreement.

On October 5, 2012, the Boards of Directors of the Company and Hampden Bank ("the Bank") voted to enter into an employment agreement between the Company, the Bank and Glenn S. Welch, the Company's President and Chief Operating Officer. The initial term of the agreement is for thirty-six months and upon expiration of that term, the agreement will be automatically renewed for successive twelve month periods unless the Boards of Directors or Mr. Welch elect not to extend the term. Mr. Welch is entitled to a base salary of $205,000 and shall be eligible to participate in discretionary bonus programs, incentive compensation programs and other employee benefits plans. Mr. Welch is also entitled to the same severance and change of control payments as described in the Company's proxy statement, as filed with the Securities and Exchange Commission on October 4, 2012, except that Mr. Welch is now entitled to receive thirty-six months, rather than twenty-four months, of severance payments and benefits if he is terminated within two years following a change of control.

The Company intends to file a copy of the employment agreement in connection with its Quarterly Report on Form 10-Q for the quarter ended December 31, 2012.

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