EXECUTIVE SUPPLEMENTAL COMPENSATION AGREEMENT

Exhibit 10.4

EXECUTIVE SUPPLEMENTAL COMPENSATION AGREEMENT

JOHN J. PATTERSON

AGREEMENT made as of the third day of January 1996, by and between UNITED CO-OPERATIVE BANK, a banking corporation chartered under the Laws of the Commonwealth of Massachusetts and having a principal place of business in West Springfield, Massachusetts (hereinafter called the “Corporation”) and JOHN J. PATTERSON of 48 Wrenwood Lane, Agawam, Massachusetts (hereinafter called the “Employee”).

WHEREAS, the Employee is a valued employee of the Corporation; and

WHEREAS, it is anticipated that the Employee will continue to render valuable services to the Corporation in the future;

NOW, THEREFORE, in consideration of the mutual covenants contained herein, it is agreed between the parties hereto as follows:

1. Employment . The Employee agrees to use his best efforts on behalf of the Corporation and to perform all the work required by the Corporation promptly and to the best of his ability while he is in the employ of the Corporation. The Employee agrees that during the period of his employment, he will not have any other business affiliations without the specific approval of the Board of Directors of the Corporation.

2. Compensation After Retirement .

A. The Corporation agrees that, if the Employee is employed by the Corporation upon the date the Employee becomes age sixty-five (65), the Employee may retire from the employment as of the first day of the next month following his sixty-fifth birthday and receive a benefit set forth in Section 2(B).

B. Commencing upon such date of the Employee’s retirement, the Corporation will pay the Employee supplemental compensation for his services rendered prior to his retirement. The annual amount of this supplemental compensation shall be sixty percent (60%) of his highest three (3) years average base salary reduced by (i) his annual benefit on a single life income basis from the Corporation’s defined benefit plan, (ii) his annual benefit on a single life income basis as calculated by the plan actuary from the Corporation’s contribution and earnings thereon from the Corporation’s 401(k) plan, (iii) the annual benefit on a single life income basis resulting from participation in a qualified plan with any prior employer (total employer contributions as of the date of termination of his employment with prior employer(s) plus all earnings thereon) and (iv) one half of his primary Social Security benefit. The parties agree that the annual benefit under (iii) above shall be

determined for the Employee’s year of retirement as shown on Exhibit B attached hereto and made a part hereof.

The benefit payable hereunder shall be paid on a monthly basis for a period of one hundred eighty (180) months from the date of retirement or for the life of the Employee, whichever is longer. In the event the Employee dies after retirement hereunder and prior to receiving all of the payments due him under Section 2 or 3, the remaining payments shall be made as they become due to the Employee’s beneficiary designated on Exhibit A attached hereto and made a part hereof. In the absence or default of a designated or contingent beneficiary, such payments shall be made to the Employee’s estate.

3. Compensation Upon Early Retirement .

The Corporation agrees that, if the Employee is employed by the Corporation upon the date the Employee becomes age sixty-two (62), he may retire from the employment at any time after the first day of the next month following his sixty-second (62) birthday up to the date of his sixty-fifth (65) birthday and receive a benefit hereunder. However, such early retirement will result in a reduction of the benefit provided in Section 2(B) hereof. The early retirement benefit shall be determined by multiplying the benefit determined in Section 2(B) as though Employee has attained age 65 and multiplied by the appropriate percentage in the following table (or a pro rata portion thereof if a part of a year is involved):

Said early retirement supplemental compensation shall be payable monthly in accordance with the above schedule and for the period of time established in Section 2 (B) hereof commencing at the date of his early retirement.

4. Pre-Retirement Death Benefit . If the Employee dies (other than by suicide within two (2) years from the date of this Agreement) while employed by the Corporation, his beneficiary designated in writing and filed with the Insurer shall be entitled to receive in a lump sum that portion of the proceeds of Policy No. 1-544-231 issued by Security Life Insurance Company of Denver dated January 3, 1996 that exceeds the greater of (i) the cumulative premiums paid towards the Policy less the economic benefits charged to Employee as compensation paid by Corporation or (ii) the Policy’s cash surrender value.

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