EXHIBIT 10.40

You hereby confirm your resignation, effective December 31, 2012, as the Bank's Executive Vice President and Chief Credit Officer. Beginning January 1, 2013, your position with the Bank is Executive Vice President and Senior Advisor to the Bank's Chief Executive Officer.

Your compensation and benefits in 2013 shall be the same as you enjoyed as of December 31, 2012, except for the following adjustments:

Your cash salary will be $24,230.76 bi-weekly, representing an annualized rate of $630,000; and

Your share salary will be $18,076.92 bi-weekly, representing an annualized rate of $470,000.

The Bank shall provide you with retention payments specified below (the “Retention Payment(s)”) designed to encourage you to remain employed by the Bank through June 30, 2013 and to provide such assistance to the Bank as the Bank's Chief Executive Officer or President may reasonably request in the following areas:

Transitional support to Hugh Boyle, who has been appointed the Bank's Chief Risk Officer (subject to receipt of OCC non-objection) and whose employment with the Bank commenced on January 22, 2013;

Transitional support to Joseph Redoutey, the Bank's Chief Credit Officer, who assumed that position effective as of January 1, 2013;

Assistance in the process of resolving by June 30, 2013 all “matters requiring attention” or MRAs from the OCC that are unresolved as the date of this letter agreement and that relate to the Bank's ALLL, Rep & Warranty Reserve and Loan Concentration Limits.

Assistance in providing oversight of, and recommendations regarding, the process of securing as promptly as practicable the required borrower, agent and consents required by, and effecting the closings under, (1) the Transaction Purchase and Sale Agreement, dated as of December 31, 2012, between the Bank and CIT Finance LLC (the “CIT Agreement”) and (2) the Asset and Portfolio Purchase and Sale Agreement, dated February 5, 2013, between the Bank and Customers Bank (the “Customers Agreement”).

It being understood that the Bank's receipt of the consents referenced in paragraph 3.D are not within your individual control and therefore that Bank's obligation to make the Retention Payments is not dependent solely upon when such consents are in fact obtained or when the closings occur, you acknowledge that the Bank's goals in paragraph 3.D above are to

Obtain by February 22, 2013 for the CIT Agreement consents for the transfer of loans and leases representing at least 50% of consents required under that agreement;

Obtain by March 1, 2013 for the Customer Agreement consents for the transfer of loans and leases representing at least 50% of consents required under that agreement;

Receive by March 8, 2013 at least 75% of the amount of unpaid principal balances of loans and leases to be transferred under the CIT agreement;

Obtain by March 15, 2013 for each of the CIT Agreement and Customers Agreement consents for the transfer of loans and leases, representing at least 90% of consents required under that agreement; and

Receive by March 22, 2013 at least 95% of the amount of unpaid principal balances of loans and leases to be transferred under the CIT agreement.

Subject to the other terms and conditions of this letter agreement, including without limitation paragraphs 5, 7, 8 and 9, the following Retention Payments shall be due to you, provided you are actively employed by the Bank on the dates set forth below (the “Retention Dates”):

A Retention Payment in the gross amount of $30,000.00 with respect to March payable on April 1, 2013 (or, if later, on the date provided in paragraph 7 of this letter agreement), if in the discretion of the Bank's Chief Executive Officer you have provided in all material respects through March 31, 2013 the transitional support outlined in paragraph 3.D of this letter agreement, taking into account the Bank's goals specified in paragraph 3.E; and

A Retention Payment in the gross amount of $110,000.00 on June 18, 2013, with respect to April, May and June, payable on June 18, 2013 (or, if later, on the date provided in paragraph 7 of this letter agreement), if in the discretion of the Bank's Chief Executive Officer you have provided in all material respects through June 14, 2013 the transitional support outlined in paragraph 3.A-D of this letter agreement.

If your employment by the Bank ceases before either of the respective Retention Dates, including, without limitation, because the Bank terminates your employment, with or without Cause, as defined below, or you resign from the employment relationship with the Bank for any reason or no reason, or if you otherwise cease to be actively employed by the Bank, you will not receive any subsequent Retention Payment. For purposes of this letter agreement, “actively employed” means that you are not on any leave of absence, with or without pay. If you are on a leave of absence as of a scheduled Retention Date, you will not be eligible for the subject Retention Payment.

Notwithstanding any other provision of this letter agreement, including the Bank's undertaking to make the Retention Payments upon the satisfaction of certain conditions, the nature of your employment relationship with the Bank shall remain “at-will”, meaning that either you or the Bank may terminate the employment relationship at any time for any or no reason. Without limiting the scope of the immediately preceding sentence, you acknowledge and agree that that the Bank may summarily terminate your employment for Cause.

For purposes of this letter agreement, "Cause" shall mean:

In rendering the support outlined in paragraph 3 of this letter agreement, your failure, in the judgment of the Bank's Chief Executive Officer, to follow in all material respects the instructions provided by the Bank's Chief Executive Officer, which failure continues for more than ten (10) days after written notice from the Bank's Chief Executive Officer describing in a summary fashion the nature of such failure;

Your personal dishonesty;

Your breach of fiduciary duty involving personal profit;

Your intentional failure to perform your duties;

Your willful misconduct

Your willful violation of any law, rule or regulation (other than minor traffic violations or similar offenses) or a final cease and desist order from a banking regulatory agency;

Your material breach of any provision of this letter agreement; or

The lawful instruction of a bank regulatory agency prohibiting your continued employment in a financial services institution.

If you qualify for the Retention Payment(s) described herein, such Retention Payment(s) are subject to customary deductions for applicable taxes and will be paid to you on the Bank's next regularly scheduled pay day following the later of (1) the applicable Retention Date, and (2) the third (3^rd) business day following the expiration of the Revocation Period as defined in the applicable Release of Claims Agreement.

The Bank agrees that it shall make the payments and/or provide the benefits to you as contemplated in paragraph 2 or paragraph 4, above; not require you to be based at a location in excess of thirty (30) miles from Milton, Massachusetts; and not materially fail to comply with any material provision of this letter agreement.

The parties believe that the provisions of this letter agreement are in compliance with the Troubled Asset Relief Program under the Emergency Economic Stabilization Act of 2008, including the Interim Final Rule and any other rules and regulations thereunder, as amended (the "TARP Requirements"), Section 18(k) of the Federal Deposit Insurance Act and the FDIC regulations promulgated thereunder codified at 12 C.F.R. Part 359 (the “Golden Parachute Restrictions”) and other applicable law, as presently in effect, if and to the extent that such requirements apply. For so long as the Bank and the Company are subject to the TARP Requirements and Golden Parachute Restrictions, the provisions of this letter agreement are subject to and shall be, to the fullest extent possible, interpreted to be consistent with the TARP Requirements and Golden Parachute Restrictions, which terms control over the terms of this letter agreement in the event of any conflict between the TARP Requirements or the Golden Parachute Restrictions and this letter agreement. Notwithstanding anything in this letter agreement to the contrary, in no event shall any payment, award or benefit under this letter agreement vest or be settled, paid or accrued, if any such vesting, settlement, payment or accrual would be in violation of the TARP Requirements, the Golden Parachute Restrictions, or other applicable law. In the event of any such violation, the parties will cooperate in good faith to endeavor to meet the TARP Requirements, the Golden Parachute Restrictions and other applicable law in a manner which preserves to the greatest extent possible the intent and purposes of this letter agreement. If any governmental authority asserts that, or questions whether, any payment, award or benefit to you, paid or accrued, violates any of the TARP Requirements, the Golden Parachute Restrictions or other applicable law, the Bank shall provide reasonable assistance to you to rebut such assertion or to address such question, provided, however, neither the Bank nor any of its affiliates shall have any obligation to participate in any adversarial proceeding (including any civil or administrative matter) or to take any action that the Bank's Board of Directors determines in the exercise of its fiduciary duty is not in the Bank's best interest. Without limiting the scope of this paragraph, you acknowledge and agree that if any Retention Payment covers a period that also is a “TARP Period” (as that term is defined in the TARP Standards for Compensation and Corporate Governance in the U.S. Treasury's interim final rule codified at 31 C.F.R. § 30.1), the Retention Payment shall be reduced pro rata for each day of the retention period that also is part of the TARP Period.

The parties believe that the provisions of this letter agreement are in compliance with the requirements of Section 409A of the Internal Revenue Code ("Section 409A"), as presently in effect, if and to the extent that such requirements apply. In the event that any of the payment obligations hereunder will be considered by the Internal Revenue Service not to be in compliance with the requirements of Section 409A, the parties will cooperate in good faith to endeavor to meet these requirements in a manner which preserves to the greatest extent possible the economic benefits intended to be conferred on you under this letter agreement. However, to the extent such economic benefits exceed the limits of the law, the Bank shall not be required to make any such payment which exceeds such legal limit.

You hereby represent and warrant to the Bank that, except as you may have disclosed in writing to the Bank's Interim General Counsel, with any such writing making reference to this letter agreement and being delivered prior to your execution and delivery of this letter agreement, to your knowledge, (i) since December 31, 2011, there were no significant deficiencies or material weaknesses in the design or operation of the Company's internal control which are reasonably likely to adversely affect the Company's ability to record, process, and summarize financial information; (ii) since your