exv10w3






Exhibit 10.3




THE CENTURY BANCORP

SUPPLEMENTAL EXECUTIVE RETIREMENT

AND INSURANCE PLAN




AS AMENDED AND RESTATED EFFECTIVE AS OF DECEMBER 1, 2008














 





TABLE OF CONTENTS




	 	 	 	 	 
	 	 	Page
	PREAMBLE
	 	 	 	 
	ARTICLE I CONSTRUCTION OF THE PLAN
	 	 	1	 
	 
	 	 	 	 
	1.1 Definitions
	 	 	 	 
	(a) Accrual Percentage
	 	 	1	 
	(b) Actuarial Equivalent
	 	 	3	 
	(c) Actuary
	 	 	3	 
	(d) Average Compensation
	 	 	3	 
	(e) Beneficiary
	 	 	3	 
	(f) Benefits Commencement Date
	 	 	4	 
	(g) Benefit Percentage
	 	 	4	 
	(h) Board of Directors
	 	 	4	 
	(i) Change of Control
	 	 	4	 
	(j) Code
	 	 	4	 
	(k) Committee
	 	 	4	 
	(l) Compensation
	 	 	4	 
	(m) Director
	 	 	4	 
	(n) Early Retirement Age
	 	 	4	 
	(o) Early Retirement Date
	 	 	4	 
	(p) Effective Date
	 	 	4	 
	(q) Employee
	 	 	4	 
	(r) Employer
	 	 	4	 
	(s) ERISA
	 	 	4	 
	(t) Executive Management Group
	 	 	4	 
	(u) Normal Retirement Date
	 	 	4	 
	(v) Participant
	 	 	4	 
	(w) Pension Trust Offset
	 	 	5	 
	(x) Pension Trust
	 	 	5	 
	(y) Plan
	 	 	5	 
	(z) Plan Year
	 	 	5	 
	(aa) Post-2004 Benefit
	 	 	5	 
	(bb) Postponed Retirement Date
	 	 	5	 
	(cc) Pre-2005 Benefit
	 	 	5	 
	(dd) Senior Management Group
	 	 	5	 
	(ee) Social Security Benefit
	 	 	5	 
	(ff) Specified Employee
	 	 	5	 
	(gg) Years of Plan Participation
	 	 	6	 
	1.2 Construction
	 	 	6	 
	 
	 	 	 	 
	ARTICLE II PARTICIPATION
	 	 	6	 
	 
	 	 	 	 
	ARTICLE III ELIGIBILITY FOR BENEFITS
	 	 	6	 
	 
	 	 	 	 
	3.1 Normal Retirement
	 	 	6	 
	3.2 Early Retirement
	 	 	7	 
	3.3 Deferred Vested Retirement
	 	 	7	 






i









 






	 	 	 	 	 
	 	 	Page
	3.4 Timing of Commencement
	 	 	7	 
	3.5 Elections Regarding Post-2004 Benefits
	 	 	7	 
	 
	 	 	 	 
	ARTICLE IV SUPPLEMENTAL RETIREMENT BENEFITS
	 	 	8	 
	 
	 	 	 	 
	4.1 Normal or Postponed Retirement
Benefits
	 	 	8	 
	4.2 Early Retirement Benefits
	 	 	9	 
	4.3 Deferred Vested Retirement Benefits
	 	 	10	 
	4.4 No Accrual After Commencement
	 	 	10	 
	 
	 	 	 	 
	ARTICLE V PAYMENT OF BENEFITS
	 	 	10	 
	 
	 	 	 	 
	5.1 Normal Form of Payment
	 	 	10	 
	5.2 Optional Forms of Payment
	 	 	10	 
	5.3 Frequency of Payment
	 	 	11	 
	5.4 Nature of Claim
	 	 	11	 
	 
	 	 	 	 
	ARTICLE VI INSURANCE BENEFITS
	 	 	11	 
	 
	 	 	 	 
	6.1 In General
	 	 	11	 
	6.2 Amount of Insurance
	 	 	12	 
	6.3 Termination of Employment
	 	 	12	 
	6.4 Beneficiaries
	 	 	12	 
	6.5 Taxation
	 	 	12	 
	6.6 Procedures
	 	 	13	 
	 
	 	 	 	 
	ARTICLE VII PLAN ADMINISTRATION
	 	 	13	 
	 
	 	 	 	 
	7.1 Plan Administrator
	 	 	13	 
	7.2 Composition of the Committee
	 	 	13	 
	7.3 Powers and Duties of Committee
	 	 	13	 
	 
	 	 	 	 
	ARTICLE VIII MISCELLANEOUS PROVISIONS
	 	 	14	 
	 
	 	 	 	 
	8.1 No Contract of Employment
	 	 	14	 
	8.2 Assignment
	 	 	14	 
	8.3 Forfeiture in the Event of Discharge for Cause
	 	 	14	 
	8.4 Amendment
	 	 	15	 
	 
	 	 	 	 
	Schedule A            Change of Control Definition
	 	 	16	 






ii









 





THE CENTURY BANCORP

SUPPLEMENTAL EXECUTIVE RETIREMENT

AND INSURANCE PLAN




PREAMBLE



Century Bancorp, Inc. has adopted this Plan for a select group of management Employees in order to
(a) attract, retain and motivate qualified management Employees, (b) facilitate the retirement of
such Employees, and (c) in certain cases, provide survivor income for the Beneficiaries of such
Employees. The Plan is intended to be “a plan which is unfunded and is maintained by an employer
primarily for the purpose of providing deferred compensation for a select group of management or
highly compensated employees” within the meaning of Sections 201(2), 301(a)(3), and 401(a)(1) of
ERISA, and shall be interpreted and administered to the extent possible in a manner consistent with
that intent.



This Plan amends and restates, effective December 1, 2008, The Century Bancorp, Inc. Supplemental
Executive Retirement/Insurance Plan. This Plan was previously amended effective January 1, 1984,
January 1, 1989, and January 1, 2000.



As amended and restated effective as of December 1, 2008, to the extent applicable this Plan is
intended to comply with the provisions of Section 409A of the Code with respect to Post-2004
Benefits and shall be interpreted and administered to the extent possible in a manner consistent
with this intent.




ARTICLE I




CONSTRUCTION OF THE PLAN




1.1 DEFINITIONS



Whenever used in this Plan with initial capital letters, the following terms shall have the
following meanings:



(a) “ACCRUAL PERCENTAGE” means:



(i) in the case of a Participant whose employment with the Employer terminates before attaining
age forty (40), 0%; or



(ii) in the case of a Participant whose employment with the Employer terminates after attaining
age forty (40), the percentage from the following tables:














 







For any Participant who is a member of the Executive Management Group, and Employees who became
Participants before January 1, 2000, the following table will apply:




	 	 	 	 	 
	Years of Plan Participation	 	Accrual Percentage
	Fewer than 5

	 	 	0.0	%
	5 but less than 6

	 	 	25.0	 
	6 but less than 7

	 	 	32.5	 
	7 but less than 8

	 	 	40.0	 
	8 but less than 9

	 	 	47.5	 
	9 but less than 10

	 	 	55.0	 
	10 but less than 11

	 	 	62.5	 
	11 but less than 12

	 	 	70.0	 
	12 but less than 13

	 	 	77.5	 
	13 but less than 14

	 	 	85.0	 
	14 but less than 15

	 	 	92.5	 
	15 or more

	 	 	100.0	 





For Employees who became Participants after December 31, 1999 (other than members of the Executive
Management Group) the following table shall apply:




	 	 	 	 	 
	Years of Plan Participation	 	Accrual Percentage
	Fewer than 5

	 	 	0	%
	5 but less than 6

	 	 	20	 
	6 but less than 7

	 	 	24	 
	7 but less than 8

	 	 	28	 
	8 but less than 9

	 	 	32	 
	9 but less than 10

	 	 	36	 






2









 






	 	 	 	 	 
	Years of Plan Participation	 	Accrual Percentage
	10 but less than 11

	 	 	40	 
	11 but less than 12

	 	 	44	 
	12 but less than 13

	 	 	48	 
	13 but less than 14

	 	 	52	 
	14 but less than 15

	 	 	56	 
	15 but less than 16

	 	 	60	 
	16 but less than 17

	 	 	64	 
	17 but less than 18

	 	 	68	 
	18 but less than 19

	 	 	72	 
	19 but less than 20

	 	 	76	 
	20 but less than 21

	 	 	80	 
	21 but less than 22

	 	 	84	 
	22 but less than 23

	 	 	88	 
	23 but less than 24

	 	 	92	 
	24 but less than 25

	 	 	96	 
	25 or more

	 	 	100	 





Notwithstanding the above, upon a Change of Control the Accrual Percentage of a Participant who is
employed by the Employer on the date of such Change will be 100%.



(b) “ACTUARIAL EQUIVALENT” means a benefit of equal present value to the benefit which otherwise
would have been provided to the Participant, computed on the basis of mortality according to the
1984 Unisex Pension Mortality Table and an interest rate of 7.5% compounded annually.



(c) “ACTUARY” means the enrolled actuary selected by the Board.



(d) “AVERAGE COMPENSATION” means the Compensation of a Participant averaged over the thirty-six
(36) consecutive calendar months within the last one hundred twenty (120) calendar months as an
Employee which produces the highest average.



(e) “BENEFICIARY” means a person entitled to benefits under the provisions of the Plan, other than
the Participant.




3









 







(f) “BENEFITS COMMENCEMENT DATE” means the first day of the month coincident with or next
following the date payment of the Participant’s Post-2004 Benefit is to be made, as determined
pursuant to his election or otherwise in accordance with the rules set forth in Article III below.



(g) “BENEFIT PERCENTAGE” means, for Participants who are members of the Executive Management
Group, 75% and for all other Participants, 66%.



(h) “BOARD OF DIRECTORS” means the Board of Directors of the Employer.



(i) “CHANGE OF CONTROL” shall mean the occurrence of any one of the events defined in Schedule A.



(j) “CODE” means the Internal Revenue Code of 1986, as amended.



(k) “COMMITTEE” means the Plan Committee described in Article VII.



(l) “COMPENSATION” means the total W-2 earnings paid by the Employer to the Employee during a Plan
Year, increased by the amount of any salary reduction contribution on behalf of the Employee by the
Employer to a 401(k) plan maintained by the Employer or to any cafeteria plan maintained by the
Employer pursuant to Section 125 of the Code.



(m) “DIRECTOR” means a member of the Board of Directors.



(n) “EARLY RETIREMENT AGE” means the first day of the month after a Participant has attained age
fifty-five (55) and completed five (5) or more Years of Plan Participation.



(o) “EARLY RETIREMENT DATE” means a Participant’s date of termination after attaining his Early
Retirement Age, but prior to his Normal Retirement Date.



(p) “EFFECTIVE DATE” means January 1, 1984.



(q) “EMPLOYEE” means any person who is hired by the Employer.



(r) “EMPLOYER” means Century Bancorp, Inc., Century Bank & Trust Co., Century North Shore Bank &
Trust Company, and the Bank of Massachusetts, all corporations organized and existing under laws of
the Commonwealth of Massachusetts or its successor or successors.



(s) “ERISA” means the Employee Retirement Income Security Act of 1974.



(t) “EXECUTIVE MANAGEMENT GROUP” means a group of Employees consisting of those individuals
designated on their initial participation in the Plan or thereafter as members of the Executive
Management Group.



(u) “NORMAL RETIREMENT DATE” means the first day of the month coincident with or next following
the Participant’s 65th birthday.



(v) “PARTICIPANT” means any eligible Employee of the Employer who has satisfied the requirements
in Section 2.1.




4









 







(w) “PENSION TRUST OFFSET” means the monthly retirement benefit that would be payable to the
Participant under the Pension Trust beginning on his Normal Retirement Date or Postponed Retirement
Date, if applicable, (both as defined in this Plan), under the 120 month term certain annuity form
of payment under the Pension Trust.



In the event that payments under the Pension Trust actually begin on a date other than the
Participant’s Normal Retirement Date or Postponed Retirement Date, if applicable (both as defined
in this Plan), or are paid in a form other than the 120 months certain annuity, such retirement
benefit shall be adjusted based on this Plan’s definition of Actuarial Equivalence.



(x) “PENSION TRUST” means The Century Bancorp Pension Trust, a pension plan qualified under
Section 401 of the Code.



(y) “PLAN” means The Century Bancorp Supplemental Executive Retirement and Insurance Plan.



(z) “PLAN YEAR” means the 12-month period ending on September 30.



(aa) “POST-2004 BENEFIT” means any part of a Participant’s Normal Retirement Benefit, Early
Retirement Benefit, or Deferred Vested Retirement Benefit, as applicable, under the Plan which is
not part of the Participant’s Pre-2005 Benefit.



(bb) “POSTPONED RETIREMENT DATE” means the first day of any month after a Participant’s Normal
Retirement Date and after his termination of employment.



(cc) “PRE-2005 BENEFIT” means a Participant’s Normal Retirement Benefit, Early Retirement Benefit,
or Deferred Vested Retirement Benefit, as applicable, based on his Years of Plan Participation,
Accrual Percentage and all other relevant factors as of December 31, 2004, and determined under the
terms of the Plan adopted and in effect as of October 3, 2004, but only to the extent earned and
vested as of December 31, 2004 within the meaning of Section 409A of the Code.



(dd) “SENIOR MANAGEMENT GROUP” means a group of Employees consisting of those individuals
designated on their initial participation in the Plan or thereafter as members of the Senior
Management Group.



(ee) “SOCIAL SECURITY BENEFIT” means an estimate made by the Actuary of the monthly primary
old-age Social Security Benefit (under Title II of the federal Social Security Act) which would be
payable commencing at Normal Retirement or a Postponed Retirement Date, if applicable, assuming the
Participant has the number of covered employment years required to maximize his Social Security
Benefit.



(ff) “SPECIFIED EMPLOYEE” means an officer or other employee of an Employer (or of any other
corporation, or trade or business, required to be taken into consideration for this purpose under
Section 409A or the Code) who is a specified employee within the meaning of Section 409A of the
Code.




5









 







(gg) “YEARS OF PLAN PARTICIPATION” means 1/12 of the number of calendar months while an Employee
is employed by the Employer and while he is designated as a Participant in this Plan. When this
calculation results in a number of years plus a fraction of a year, if the fraction is 5/12 or less
it shall be ignored, otherwise it will be considered the same as one full year. At the sole
discretion of the Committee, a Participant’s Years of Plan Participation may include such
additional number of Years as the Committee may elect.




1.2 CONSTRUCTION



(a) Where necessary or appropriate to the meaning hereof, the singular shall be deemed to include
the plural, the plural to include the singular, the masculine to include the feminine, and the
feminine to include the masculine.



(b) If any provision of the Plan or the application thereof to any circumstance or person is
invalid, the remainder of the Plan and the application thereof to other circumstances or persons
shall not be affected thereby.



(c) All headings contained herein are for convenience of reference only and shall not be construed
as a part of this Plan, or have any effect upon the meaning of the provisions hereof.



(d) To the extent not preempted by federal law, the provisions of the Plan shall be construed,
administered, and enforced under the laws of the Commonwealth of Massachusetts.




ARTICLE II




PARTICIPATION



The Participants in the Plan will be such management employees as may be selected from time to time
by the Committee. Each Participant will be considered a member of the Senior Management Group for
purposes of determining the Participant’s benefits unless the Committee expressly provides (on
initial eligibility or thereafter) that he is to be a member of the Executive Management Group.



The Committee may terminate an Employee’s participation in the Plan (while he is still an
Employee), but, subject to Section 8.3, no such action will reduce the Employer’s obligation to any
Participant below the amount to which he would be entitled under the Plan as in effect immediately
prior to such action if his employment then terminated.




ARTICLE III




ELIGIBILITY FOR BENEFITS




3.1 NORMAL RETIREMENT



A Participant who terminates employment with the Employer after attaining his Normal Retirement
Date, or after his Early Retirement Age but having elected to defer commencement of his benefit
until his Normal Retirement Date, shall be eligible to receive the normal retirement benefit
described in Section 4.1.




6









 








3.2 EARLY RETIREMENT



A Participant who has attained his Early Retirement Age shall be eligible to receive the early
retirement benefit described in Section 4.2.




3.3 DEFERRED VESTED RETIREMENT



A Participant who has attained age forty (40) and has at least five (5) Years of Plan Participation
whose employment with the Employer is terminated prior to attainment of his Normal Retirement Date
shall, after attaining his Early Retirement Age, be eligible to receive the deferred vested
retirement benefit described in Section 4.3.




3.4 TIMING OF COMMENCEMENT



(a) Payment of any Pre-2005 Benefit shall commence in accordance with the practices and procedures
for the commencement of benefits adopted and in effect under the Plan as of October 3, 2004.



(b) Payment of any Post-2004 Benefit shall commence on the Participant’s Normal Retirement Date,
regardless of the date of the Participant’s retirement or other termination of employment, except
to the extent the Participant shall have timely and validly established another Benefits
Commencement Date with respect to all or any part of his Post-2004 Benefit in accordance with the
provisions of Section 3.5.




3.5 ELECTIONS REGARDING POST-2004 BENEFITS



(a) A Participant may elect a Benefits Commencement Date with respect his Post-2004 Benefits at any
time within thirty (30) days after the date the Participant is first designated as eligible to
participate in the Plan, provided, that no such election may apply as to any part of the
Participant’s Post-2004 Benefit that the Committee determines is deemed attributable under Section
409A of the Code to services for the calendar year in which the Participant’s election is made, or
for any prior calendar year. Any elected Benefits Commencement Date may be





	 	(i)	 	the date the Participant attains a specified age, not earlier than age
fifty-five (55) and not later than age sixty-five (65), provided that if
the Participant elects a specified age before age sixty-five (65), in no event will
his Benefits Commencement Date be prior to his completion of five (5) Years of Plan
Participation; or
	 
	 	(ii)	 	the later of the date the Participant attains a specified age
(established consistent with the rules in (i) above) and the date of his
termination of employment, provided that in this case his Benefits
Commencement Date may not be prior to the Participant’s “separation from service”
within the meaning of Section 409A of the Code, and provided
further that if the Participant is a Specified Employee as of his
separation from service, all payments otherwise payable prior to the first day of
the seventh month following the month in which he separates from service (or his
death, if earlier), shall be paid in a single sum on such first day (or the date of
his death, if earlier).




7









 










(b) A Participant’s Benefits Commencement Date, once established pursuant to an election under
Section 3.5(a) or by application of the general rule of Section 3.4(b), is irrevocable and cannot
be changed except as follows. A Participant may elect a different Benefits Commencement Date as to
all of his Post-2004 Benefits otherwise due him commencing on a particular Benefits Commencement
Date provided either





	 	(i)	 	such election was made in a calendar year ending on or prior to
December 31, 2008 and did not result in any payment otherwise due to be paid in the
calendar year in which the election was made being paid instead after that year, or
in any payment otherwise due to be paid in a calendar year subsequent to the year
the election was made instead being paid in the calendar year the election was
made, or
	 
	 	(ii)	 	such election (1) does not take effect until at least twelve (12)
months after the date made; (2) is made at least twelve (12) months prior to the
Benefits Commencement Date previously established; and (3) results in a new
Benefits Commencement Date which is at least five (5) years after the existing
Benefits Commencement Date.





ARTICLE IV




SUPPLEMENTAL RETIREMENT BENEFITS




4.1 NORMAL OR POSTPONED RETIREMENT BENEFITS



The monthly Normal Retirement Benefit of a Participant commencing on the Participant’s Normal
Retirement Date or Postponed Retirement Date shall be the sum of (a) minus (b) minus (c), subject
to a minimum benefit (d) below, then multiplied by his Accrual Percentage and then divided by
twelve (12):



(a) His Benefit Percentage multiplied by his Average Compensation;



(b) His Pension Trust Offset;



(c) His Social Security Offset, which is equal to 100% of the Social Security Benefit;



(d) $2,400



The monthly Retirement Benefit for Mr. Marshall M. Sloane has been calculated as of January 1, 2001
based on his Accrual Percentage as of January 1, 2001, his Pension Trust offset as of January 1,
2001, and his Social Security Offset as of January 1, 2001, and will not change after January 1,
2001.




8









 








4.2 EARLY RETIREMENT BENEFITS




The monthly early retirement benefit of a Participant who has commenced receiving payments prior to
January 1, 1999, shall be the benefit calculated in accordance with Section 4.1, provided, however,
that to the extent payment begins prior to the Participant’s Normal Retirement Date, the amount
thereof shall be reduced according to the following schedule:



	 	 	 	 	 
	Age of Commencement	 	Early Retirement Percentage
	55

	 	 	35	%
	56

	 	 	40	 
	57

	 	 	45	 
	58

	 	 	50	 
	59

	 	 	55	 
	60

	 	 	60	 
	61

	 	 	68	 
	62

	 	 	76	 
	63

	 	 	84	 
	64

	 	 	92	 
	65

	 	 	100	 





The above factors will be interpolated to the nearest month.



The monthly Early Retirement Benefit of a Participant who has commenced receiving payments on or
after January 1, 1999, other than any member of the Executive Management Group who has commenced
receiving payments on or after January 1, 2002, shall be the benefit calculated in accordance with
Section 4.1, provided, however, that to the extent payment commences prior to the Participant’s
Normal Retirement Date, the amount thereof shall be reduced 5/9% for each of the first sixty (60)
months that the commencement of payments precedes the Participant’s Normal Retirement Date and
5/18% for each of the next sixty (60) months.



The monthly Early Retirement Benefit of a Participant in the Executive Management Group, who has
commenced receiving payments on or after January 1, 2002, shall be the benefit calculated in
accordance with Section 4.1, provided, however, that to the extent payment commences prior to the
Participant’s 62nd birthday, the amount thereof shall be reduced 5/9% for each of the first
twenty-four (24) months that the commencement of payment precedes the Participant’s 62nd birthday
and 5/18% for each for the next sixty (60) months.




9









 








4.3 DEFERRED VESTED RETIREMENT BENEFITS



The monthly deferred vested benefit of a Participant shall be the benefit calculated in accordance
with Section 4.1, provided, however, that to the extent payment begins prior to the Participant’s
Normal Retirement Date, the amounts thereof shall be reduced as in Section 4.2 above.




4.4 NO ACCRUAL AFTER COMMENCEMENT



No Participant shall accrue additional benefits under the Plan after any part of his benefits shall
commence to be paid.




ARTICLE V




PAYMENT OF BENEFITS




5.1 NORMAL FORM OF PAYMENT



Retirement benefits shall be paid to the Participant monthly for the life of the Participant, but
in any event for a minimum of one hundred and twenty (120) months of payments.



If the Participant dies prior to the expiration of such one hundred and twenty (120) month period,
his Beneficiary will receive a monthly payment for the remainder of the one hundred and twenty
(120) month period equal to the monthly amount payable to the Participant prior to his death. A
Participant may designate a Beneficiary entitled to receive benefits under this Section for the
balance of the one hundred and twenty (120) month period in writing on a form satisfactory to the
Employer. If, after the death of a Participant during the one hundred and twenty (120) month
period, there is no designated Beneficiary, an amount shall be payable to the Participant’s estate
as follows: (a) the present value of the Pre-2005 Benefits remaining to be paid during the one
hundred and twenty (120) month period shall be calculated on the basis of the Plan’s Actuarial
Equivalent assumptions and shall be paid as soon as practicable to the Participant’s estate, and
(b) the Participant’s estate will receive a monthly payment for the remainder of the one hundred
and twenty (120) month period equal to the monthly amount of Post-2004 Benefits payable to the
Participant prior to his death.




5.2 OPTIONAL FORMS OF PAYMENT



Subject to such rules and regulations as the Committee may establish from time to time, a
Participant eligible for a Normal, Early, or Deferred Vested Retirement Benefit under the Plan may,
in lieu of the Normal Form of Retirement described in Section 5.1, elect to receive his benefit in
the form of one of the following optional forms of payment:




(a) JOINT AND SURVIVOR ANNUITIES



A Participant may elect a joint and survivor annuity which shall provide that either one-fourth
(1/4), one-half (1/2), two-thirds (2/3), three-fourths (3/4), or all of the monthly joint and
survivor benefit payable to the Participant shall continue to be paid following his death to his
designated joint annuitant for the duration of such joint annuitant’s life. A joint and survivor
annuity shall be the Actuarial Equivalent of the Participant’s normal form of payment described in
Section 5.1. If


10









 






the joint annnuitant predeceases the Participant after the benefit has commenced,
the Participant shall continue to receive the same amount as was being paid during their joint
lives.




(b) LIFE ANNUITY AND TERM CERTAIN FORMS OF PAYMENT



A Participant may elect, in lieu of any other retirement benefit under the Plan, to receive his
benefit as a life annuity or as a five (5) or fifteen (15) years certain annuity (a “Term Certain
Annuity”.)



Any such life annuity or Term Certain Annuity shall be the Actuarial Equivalent of the Normal Form
of Payment in Section 5.1 to which the Participant would have been entitled. A Term Certain Annuity
shall provide a monthly pension for the life of the Participant with monthly payments guaranteed
for 60 or 180 months. If the retired Participant begins to receive payments but does not live to
receive 60 or 180 payments, then such payment shall continue to his designated Beneficiary (or to
his estate if the Beneficiary is deceased) until 60 or 180 payments have been made.




5.3 FREQUENCY OF PAYMENT



The Committee, at its discretion, may adjust the frequency of payment of Retirement Benefits from
monthly payment, with such adjustment being the Actuarial Equivalent of the monthly Retirement
Benefit, provided that any such adjustment is made before any annuity payment has been made under
the Plan, and provided further that the adjusted payment is made not less frequently than annually.




5.4 NATURE OF CLAIM



The Employer shall not be required to set aside or segregate any assets of any kind to meet its
obligations hereunder. A Participant shall have no right on account of this Plan in or to any
specific assets of the Employer (other than rights with respect to life insurance policies
purchased under Article VI). Any right to any payment that a Participant may have on account of the
Plan shall be those of a general, unsecured creditor of the Employer.




ARTICLE VI




DEATH BENEFITS




6.1 IN GENERAL



No death benefits are payable upon death under this Plan, except pursuant to the life insurance
policies required to be purchased and maintained as provided in this Article VI or to the extent a
death benefit may be provided under the form of retirement benefit elected under Article V hereof.




11









 








6.2 AMOUNT OF INSURANCE



The Employer will purchase and maintain one or more insurance policies on the life of each
Participant which, upon the death of the Participant, will pay directly to the Participant’s
Beneficiary an amount equal to:



(a) in the case of a Participant in the Executive Management Group who dies while in the
employment of the Employer, five (5) times the annual rate of salary being paid to the Participant
at the time of his death, or



(b) in the case of a Participant in the Senior Management Group who dies while in the employment
of the Employer, four (4) times the annual rate of salary being paid to the Participant at the time
of his death.



Any insurance amounts provided under this Article VI shall be in addition to any group-term life
insurance provided to the Participant by the Employer outside of this Plan. As matter of
convenience, the Employer may elect to purchase and maintain policies not providing exactly the
amount of insurance described herein (for example excess coverage purchased in anticipation of
salary increases). In that event the Participant and his or her beneficiaries shall have no claim
to any excess coverage, and the Employer shall be responsible for any deficit in death benefits.




6.3 TERMINATION OF EMPLOYMENT



As of the date of a Participant’s termination with the Employer for any reason other than death;



(a) the Employees obligations under this Article to purchase and maintain insurance or otherwise
provide a supplemental death benefit with respect to the Participant shall cease;



(b) the Participant will have no further rights under this Article or under any insurance policy
purchased hereunder; and



(c) if the Employer in its discretion decides to continue to maintain any insurance policies on
the life of the Participant purchased under this Article beyond his date of termination, the
Employer, and, if required by any such policies, the Participant shall take all steps necessary to
name the Employer as the sole Beneficiary of such policies as of such date.




6.4 BENEFICIARIES



A Participant may designate one or more Beneficiaries entitled to receive benefits under this
Article in the event of his death on a form satisfactory to the Employer and the insurance company
or companies issuing the insurance policy or policies on his life hereunder; however, the
Participant shall have no other rights or incidence of ownership in any such policy.




6.5 TAXATION



It is intended that any death benefit payable under an insurance policy purchased under this
Article will not be includible in the income of the Beneficiary for federal income tax purposes,
but that the one-year term cost of such life insurance protection, as determined under the


12









 






applicable provisions of the Code, will be includible in the gross income of a Participant while he
has the right to name a Beneficiary entitled to receive the death benefit.




6.6 PROCEDURES



A Participant shall cooperate fully with the Employer in connection with any such policy,
including, but not limited to, submitting to such medical examinations, providing such information
as may be required from time to time by the Employer or the insurance company, and executing any.
forms required by either the Employer or the insurance company.




ARTICLE VII




PLAN ADMINISTRATION




7.1 PLAN ADMINISTRATOR



The Plan shall be administered by a Plan Committee.




7.2 COMPOSITION OF THE COMMITTEE



The Committee shall be composed of three or more members, who shall be Employees or Directors of
the Employer. Any member of the Committee may be removed by the Employer at any time or may resign
at any time by submitting his resignation in writing to the Employer. A new Committee member shall
be appointed as soon as possible in the event that a Committee member is removed or resigns. Any
person so appointed shall signify his acceptance by filing a written acceptance with the Employer.
No member of the Committee who is a Participant in this Plan may vote or otherwise participate in
any decision or act with respect to a matter relating solely to himself (or to himself and any
Beneficiary).




7.3 POWERS AND DUTIES OF COMMITTEE



The Committee, acting in its sole discretion, will have authority to interpret the provisions of
the Plan and decide all questions and settle all disputes which may arise in connection with the
Plan and may establish its own operating and administrative rules and procedures in connection
therewith. All interpretations, decisions, and determinations made by the Committee will be binding
on all persons concerned, subject to the following claims and review procedures:



(a) Claims for participation in or distribution under the Plan shall be made in writing to the
Committee. The Committee shall review such claim within ninety (90) days of its receipt of the
same and, if any claim so made is denied in whole or in part, shall furnish the claimant, within
such ninety (90) day period, with a written notice, prepared in a manner calculated to be
understood by the claimant (i) setting forth the reasons for the denial, (ii) making reference to
pertinent Plan provisions, (iii) describing any additional material or information from the
claimant which is necessary and why, and (iv) explaining the claim review procedure set forth in
Section 7.3(b) below, including a statement of the claimant’s right to bring a civil action under
Section 502(a) of ERISA following an adverse determination on review.




13









 







(b) Within sixty (60) days after the denial of any claim for participation or distribution under
the Plan, the claimant may request in writing a review of the denial by the Committee. Any
claimant seeking review hereunder shall be entitled to examine all pertinent documents and to
submit issues and comments in writing. The Committee shall render a decision on review of a claim
not later than sixty (60) days after receipt of a request for review hereunder; provided, however,
that if the Committee determines that special circumstances, such as the need for a hearing,
require an extension, its decision on review shall be rendered within one hundred twenty (120) days
after receipt of the request for review (but in that event the Committee shall notify the claimant
of the expected date of its determination and the reason for the extension within the original
sixty (60) day period). The Committee’s decision on review shall be in writing and shall state the
reason for the decision, referring to the Plan provisions upon which it is based, and shall advise
the claimant that he or she is entitled to receive upon request and free of charge, reasonable
access to, and copies of, all documents, records, and other information relevant to the claimant’s
claim and to bring an action under Section 502(a) of ERISA.



(c) No legal proceeding may be commenced by any person having or claiming any interest in or
entitlement under this Plan until the claims and claims review procedures of this Section have been
complied with.




ARTICLE VIII




MISCELLANEOUS PROVISIONS




8.1 NO CONTRACT OF EMPLOYMENT



The Plan will not be deemed to constitute a contract of employment between the Employer and any
Participant, or to be consideration for the employment of any Participant. The Plan will not be
deemed to give any Participant the right to be retained in the employ of the Employer or to affect
the Employees ability to discharge any Participant at any time.




8.2 ASSIGNMENT



The interest hereunder of any Participant or Beneficiary will not be alienable by the Participant
or Beneficiary by assignment or any other method and will not be subject to be taken by his
creditors to any process whatsoever, and any attempt to cause such interest to be so subjected will
not be recognized, except to such extent as may be required by law.



The obligations of the Employer hereunder shall be binding on its successors or assigns, whether by
merger, consolidation, or acquisition of all or substantially all of its business or assets.




8.3 FORFEITURE IN THE EVENT OF DISCHARGE FOR CAUSE



Notwithstanding any provision in this Plan to the contrary, no Retirement Benefits will be payable
hereunder with respect to any Participant who is discharged from the Employer for cause. For
purposes of this Plan only the following shall constitute “cause”:




14









 







(a) the Participant’s falsification of accounts of the Employer, embezzlement of funds from the
Employer, or commission of any act constituting gross dereliction of duties; or



(b) the conviction of the Participant for, or entry of a pleading of guilty or nolo contendere by
the Participant to, any crime involving moral turpitude or any felony.




8.4 AMENDMENT



The Plan (including the attached Schedule A) may be altered, amended, or revoked in writing by the
Employer at any time, but no such action may reduce the Employer’s obligation with respect to a
Participant who is then still employed by the Employer below the amount to which he would be
entitled under the Plan as in effect immediately prior to such action if his employment then
terminated, and no such action may reduce the Employer’s obligation with respect to a Participant
whose employment with Employer has already then terminated. Notwithstanding the foregoing, any
provision that would cause the Plan to fail to satisfy Section 409A of the Code, shall have no
force and effect until amended to comply with Section 409A of the Code and any such amendment may
be retroactive to the extent permitted by Section 409A of the Code and may be made by the Committee
without the consent of Participants affected thereby.



IN WITNESS WHEREOF, the Employer, by its duly authorized officer, has executed this amended and
restated Plan, this first day of December, 2008.




	 	 	 	 	 	 	 
	 	 	CENTURY BANCORP, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 





15









 





Schedule A




CHANGE OF CONTROL DEFINITION



“Change of Control” means the occurrence of anyone of the following events:



(a) there occurs a change of control of Century Bancorp, Inc. of a nature that would be required
to be reported in response to Item 1(a) of the Current Report on Form 8-K pursuant to Section 13 or
15(d) of the Securities Exchange Act of 1934 or in any other filing under the Securities Exchange
Act of 1934; or



(b) any Person (other than family members of Marshall M. Sloane) becomes the owner of 25% or more
of the Employer’s Class B Common Stock and thereafter individuals who were not directors of the
Employer prior to the date such Person became a 25% owner are elected as directors pursuant to an
arrangement or understanding with, or upon the request of, or nomination by, such Person and
constitute at least 25% of the Board of Directors; or



(c) there occurs any solicitation or series of solicitations of proxies by or on behalf of any
Person other than the Board of Directors and thereafter individuals who were not directors of the
Employer prior to the commencement of such solicitation, or series of solicitations, are elected as
directors pursuant to an arrangement or understanding with, or upon the request of or nomination
by, such Person and constitute at least 25% of the Board of Directors; or



(d) the Employer executes an agreement of acquisition, merger, or consolidation which contemplates
that (i) after the effective date provided for in the agreement all or substantially all of the
business and/or assets of the Employer shall be owned, leased, or otherwise controlled by another
corporation or entity, and (ii) individuals who are directors of the Employer when such agreement
is executed shall not constitute a majority of the board of directors of the survivor or successor
company immediately after the effective date provided for in such agreement; provided, however, for
purposes of this paragraph (d) that if such agreement requires as a condition precedent approval by
the Employer’s shareholders of the agreement or transaction, a Change of Control shall not be
deemed to have taken place unless and until such approval is secured (but upon any such approval a
Change of Control shall be deemed to have occurred on the date of execution of such agreement).



For purposes of the above, the following definitions apply:



“Common Stock” shall mean the then outstanding Common Stock of the Employer plus, for purposes of
determining the stock ownership of any Person, the number of unissued shares of Common Stock which
such Person has the right to acquire (whether such right is exercisable immediately or only after
the passage of time) upon the exercise of conversion rights, exchange rights, warrants, or options
or otherwise. Notwithstanding the foregoing, the term Common Stock shall not include shares of
preferred stock or convertible debt or options or warrants to acquire shares of Common Stock
(including any shares of Common Stock issued or issuable upon the conversion or exercise thereof)
to the extent that the Board of Directors shall expressly so determine in any future transaction or
transactions.



A Person shall be deemed to be the “owner” of any Common Stock:




16









 







(i) if which such Person would be “beneficial owner” as such term is defined in Rule 13d-3
promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934; or



(ii) if which such Person would be the “beneficial owner” as such term is defined under Section 16
of the Securities Exchange Act of 1934 and the rules of the Securities and Exchange Commission
promulgated thereunder; or



(iii) which such Person or any of its Affiliates or Associates (as such terms are defined in Rule
12B-2 promulgated by the Securities Exchange Commission under the Securities and Exchange Act of
1934) has the right to acquire (whether such right is exercisable immediate or only after the
passage of time) pursuant in any agreement, arrangement, or understanding, or upon the exercise of
conversion rights, exchange rights, warrants, or options or otherwise.



“Person” shall have the meaning used in Section 13(d) of the Securities Exchange Act of 1934.





17