Life Insurance Plan

Exhibit 10(viii)
Bank Owned Life Insurance Plan TOLLAND BANK BANK OWNED LIFE INSURANCE PLAN EFFECTIVE DECEMBER 31, 2001

Tolland Bank purchases life insurance on certain members of management and directors as part of a program to provide benefits to those members and to offset any loss the bank may incur as a result of such member' s death. Persons selected by the Bank who consent to insurance under the program are eligible for benefits set forth in a written notice of participation and consent (attached as Exhibit A) delivered to the individual Participant. The following provisions apply to all Participants.

1. Death Beneficiary . The Participant may designate a Beneficiary to receive payments at the event of the Participant' s death. The designation shall be in writing and delivered to the Plan Administrator. The designated Beneficiary may include one or more persons, trusts or organizations. If no effective written designation is made, the Participant' s Beneficiary shall be the Participant' s spouse, if married on the date of death, and if not so married, shall be the Participant' s estate.

2. Vesting . If a Participant terminates employment with the Bank (or an affiliate thereof) before completing five full Years of Service, then the Participant' s death benefit shall be determined by multiplying the otherwise applicable benefit by the percentage set forth below. A Year of Service shall be a 12-month period of continuous service completed on each anniversary date of the Participant' s date of hire (or re-hire, as the case may be) if the Participant is still employed by the Bank on such anniversary. In the event of the death of a Participant who is currently employed with the Bank with at least one year of service, the death benefit shall be deemed to be fully vested even if the years of service are less than five years.
Years of Service Vested Percentage Less than 1 0 1 20 % 2 40 % 3 60 % 4 80 % 5 or more 100 %


3. Forfeiture . If the Plan Administrator determines that a Participant' s involuntary or voluntary termination of employment was related to a failure of the Participant to perform satisfactorily for the Bank, or related to any action or inaction the Plan Administrator determines to be detrimental to the interests of the Bank, then the Participant shall immediately forfeit all benefits hereunder.


4. Benefits . Benefits shall be as set forth in the written notice of participation and consent provided to each Participant. Any such benefit is conditioned on and limited to not more than the net death benefit the Bank receives under the policy or policies of insurance, net of any amount carried by the Bank as an asset related to the insurance policy. Limited by this condition, Paragraphs 2 and 3 above notwithstanding, the minimum benefit will be $10,000, subject to the other conditions of the Plan.

5. Plan Administrator . The Plan Administrator shall have discretion to operate, interpret, and implement the Plan. The Plan Administrator shall be the Employee Benefits Committee of the Bank (or such other standing committee as may be determined by the Board of Directors). The Plan Administrator' s decisions and determinations (including determinations of the meaning and reference of terms used in this Plan) shall be conclusive upon all persons. The Human Resources Director (or other officer as may be determined by the Plan Administrator) shall act as Plan Coordinator for operating the plan.

6. Alienation of Benefits . Benefits are not subject to alienation, anticipation or assignment by a Participant or Beneficiary and are not subject to being attached or reached and applied by any creditor of the Participant or Beneficiary.

7. Withholding . The Bank reserves the right to withhold from payment of benefits such amount of income, payroll, and other taxes as the Bank determines is advisable.

8. Source of Benefits . Benefits shall be paid from the general assets of the Bank and shall not be funded, by trust or otherwise. No Participant or Beneficiary shall have a right to a benefit hereunder greater than that of an unsecured general creditor of the Bank. Nothing herein shall be deemed to create a trust of any kind or to create any fiduciary relationship whatsoever.

9. Intent . This Plan is intended to be an exempt welfare plan under Title I of the Employee Retirement Income Security Act of 1974, as amended (" ERISA" ). Benefits are intended to be taxable to a Participant under the Internal Revenue Code of 1986 as amended (the " Code" ) when paid. This Plan shall be construed and interpreted in a manner consistent with the foregoing intentions.

10. Governing Law . This Plan shall be governed by the law of the State of Connecticut to the extent that it is not preempted by federal law.

11. Entire Agreement . This Plan, including the written notices of participation and notice sent to eligible employees, constitutes the entire agreement of the Bank with respect to the subject matter thereof and cannot be modified by any oral statement or otherwise except as provided in Section 12.

12. Amendment or Termination; Tax-Law Changes . Subject to Section 13, below, the Bank reserves the right to terminate or amend the Plan, in whole or in part, at any time (including after a Participant' s retirement or other termination of employment), by a written instrument. In addition, if the tax laws applicable to bank-owned life insurance change in a manner that the Plan Administrator determines adversely affects the Bank, then upon the effective date of such change the benefit provisions of this Plan shall be suspended automatically unless and until there is an action by the Board of Directors to reinstate such benefits in whole or in part.

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13. Successors; Change of Control . This Plan shall be binding on any successor-in-interest of the Bank, and no agreement with respect to sale or transfer of substantially all of the assets of the Bank shall be effective unless the successor agrees to assume all liabilities hereunder. Moreover, after a Change of Control of the Bank (as defined below), the Plan may not be amended so as to reduce benefits with respect to any Participant without the consent of the affected Participant (which consent shall be binding on any Beneficiary of that Participant). Change of Control shall be as defined to be a change in control of a nature that would be required to be reported in response to Item 5(f) of Schedule 14A of Regulation 14a promulgated under the Securities Exchange Act of 1934, as amended (" Exchange Act" ); provided that, without limitation, such a change in control shall be deemed to have occurred if:

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