Limited Waiver of Compensation Agreement between Neil St. John Raymond and First Ipswich Bancorp

Summary

Neil St. John Raymond agrees to waive his right to receive cash compensation from First Ipswich Bancorp for the period from June 1, 2006, to December 31, 2006, and also waives the automatic 4% annual base salary increase for 2006. Starting January 1, 2007, he will receive cash compensation as per his employment agreement, with his 2007 base salary set at 104% of his 2005 base salary. All other employment benefits remain unchanged.

EX-10.3 4 ex10-3.txt Exhibit 10.3 July 19, 2006 Mr. William J. Tinti Compensation Committee First Ipswich Bancorp Board of Directors 31 Market Street Ipswich, Massachusetts 01938 Re: Limited Waiver of Certain Compensation Dear Bill: The purpose of this letter is to confirm that I waive my right to cash compensation from First Ipswich Bancorp (the "Bank") for the period June 1, 2006 through December 31, 2006. I understand that I will begin to receive cash compensation, as per the terms of my employment agreement with the Bank, beginning January 1, 2007 and thereafter. In addition, my employment agreement with the Bank provides that my annual base compensation is increased automatically by 4 percent of my prior year annual base compensation. I waive my right to this adjustment as to the 2006 calendar year. My 2007 base annual salary shall be 104 percent of my 2005 base annual salary. I understand that all other benefits that accrue to me as employee of the First Ipswich Bancorp pursuant to my employment agreement other than the two items noted above that I have specifically waived will continue in full force and effect. Sincerely, /s/ Neil St. John Raymond Neil St. John Raymond NSR:nel