Document:

Exhibit
10.39.3

 

ENTERPRISE
BANK AND TRUST COMPANY

SALARY
CONTINUATION AGREEMENT

 

THIS SALARY
CONTINUATION AGREEMENT (the “Agreement”) is adopted this 15th day of July, 2005
by and between ENTERPRISE BANK AND TRUST COMPANY, a state-chartered commercial
bank located in Lowell, Massachusetts (the “Bank”) and ROBERT R. GILMAN (the “Executive”).  The purpose of this Agreement is to provide
specified benefits to the Executive, a member of a select group of management
or highly compensated employees who contribute materially to the continued
growth, development, and future business success of the Bank.  This Agreement shall be unfunded for tax
purposes and for purposes of Title I of the Employee Retirement Income Security
Act of 1974 (“ERISA”), as amended from time to time.

 

Article 1

Definitions

 

Whenever
used in this Agreement, the following words and phrases shall have the meanings
specified:

 

1.1           “Account
Value” means the amount shown on Schedule A, column 3, under the heading
Account Value.  The parties expressly
acknowledge that the Account Value at any given time may be different than the
liability that should be then accrued by the Bank, under Generally Accepted
Accounting Principles (“GAAP”), for the Bank’s obligation to the Executive
under this Agreement.  The Account Value on any date other than the
end of a Plan Year shall be determined by adding the prorated increase,
calculated on a per diem basis and a 365-day year, attributable to the current
Plan Year to the Account Value as of the end of the previous Plan Year.

 

1.2           “Active Service” means the Executive
is working on average forty (40) hours or more per week through Normal
Retirement Age, or such lower number of hours as the Compensation Committee of
the Board of Directors determines.

 

1.3           “Beneficiary”
means each designated person entitled to benefits, if any, upon the death of
the Executive determined pursuant to Article 4.

 

1.4           “Beneficiary
Designation Form” means the form established from time to time by the Plan
Administrator that the Executive completes, signs, and returns to the Plan
Administrator to designate one or more Beneficiaries.

 

1.5           “Board”
means (i) the Compensation Committee, consisting of three or more members of
the Board of Directors of the Bank, when acting under duly delegated authority
from the Board of Directors, or (ii) the Board of Directors in its entirety, in
either case as from time to time constituted.

 

 

1.6           “Change in Control” means a change in
the ownership or effective control of the Bank, or in the ownership of a substantial
portion of the assets of the Bank, as such change is defined in Section 409A of
the Code and regulations thereunder.

 

1.7           “Change
in Control Agreement” means that certain Change in Control/Noncompetition
Agreement by and among Enterprise Bancorp, Inc., the Bank and the Executive
dated as of August 1, 2001, as amended by Amendment No. 1 thereto dated as of
the date hereof.

 

1.8           “Code” means the Internal Revenue
Code of 1986, as amended.

 

1.9           “Disability”
means the Executive (i) is unable to engage in any substantial gainful activity
by reason of any medically determinable physical or mental impairment which can
be expected to result in death or can be expected to last for a continuous
period of not less than twelve (12) months, or (ii) is, by reason of any
medically determinable physical or mental impairment which can be expected to
result in death or can be expected to last for a continuous period of not less
than twelve (12) months, receiving income replacement benefits for a period of
not less than three (3) months under an accident and health plan covering
employees of the Bank.  Medical
determination of Disability may be made by either the Social Security
Administration or by the provider of an accident or health plan covering
employees of the Bank.  Upon the request
of the Plan Administrator, the Executive must submit proof to the Plan
Administrator of the Social Security Administration’s or such provider’s
determination of Disability.

 

1.10         “Early Termination” means the
occurrence of a Separation from Service before Normal Retirement Age for
reasons other than death, Disability, Termination for Cause, or following a
Change in Control.

 

1.11         “Effective Date” means January 1,
2005.

 

1.12         “Normal Retirement Age” means the
Executive attaining age sixty-three (63).

 

1.13         “Normal
Retirement Date” means the earlier to occur of (i) Normal Retirement Age or
(ii) a Separation from Service.

 

1.14         “Plan
Administrator” means the plan administrator described in Article 6.

 

1.15         “Plan Year” means each
twelve-month period commencing on January 1 and ending on December 31 of each
year from and after the date hereof; provided, however, that the initial Plan
Year shall commence on the Effective Date and end on December 31, 2005.

 

1.16         “Schedule
A” means the schedule attached to this Agreement and made a part
hereof.  Schedule A shall be updated upon
a change in any of the benefits under Articles 2 or 3.

 

1.17         “Separation
from Service” means that the Executive’s service as an employee to the Bank
and any member of a controlled group as defined in Section 414 of the Code to
which the

 

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Bank
belongs, has terminated for any reason, other than by reason of a leave of
absence approved by the Bank or the death of the Executive.

 

1.18         “Termination
for Cause” has that meaning set forth in Article 5.

 

Article 2

Distributions
During Lifetime

 

2.1           Normal Retirement Benefit.  Upon the Executive reaching Normal Retirement
Age while in the Active Service of the Bank, the Bank shall distribute to the
Executive the benefit described in this Section 2.1 in lieu of any other
benefit under this Article.

 

2.1.1        Amount
of Benefit.  The annual
benefit under this Section 2.1 is Thirty-One Thousand Dollars ($31,000).

 

2.1.2        Distribution of Benefit.  The Bank shall distribute the annual benefit
to the Executive in twelve (12) consecutive equal monthly installments
commencing within thirty (30) days following the Executive’s Normal Retirement
Age.  The annual benefit shall be
distributed to the Executive for twenty (20) years.

 

2.2           Early Termination Benefit.  Subject to Section 2.4.4, upon the occurrence
of an Early Termination, the Bank shall distribute to the Executive the benefit
described in this Section 2.2 in lieu of any other benefit under this Article.

 

2.2.1        Amount of Benefit.  The benefit under this Section 2.2 is the
vested Account Value determined as of the last calendar day of the calendar
month immediately preceding the date on which a Separation from Service occurs.  This benefit is determined by vesting the
Executive in one hundred percent (100%) of the Account Value.

 

2.2.2        Distribution of Benefit.  The Bank shall distribute the annual benefit
to the Executive in twelve (12) consecutive equal monthly installments
commencing within thirty (30) days following the Executive’s Separation from
Service.  The annual benefit shall be
distributed to the Executive for twenty (20) years.

 

2.3           Disability Benefit.  If
the Executive’s Disability results in a Separation from Service prior to Normal
Retirement Age, the Bank shall distribute to the Executive the benefit
described in this Section 2.3 in lieu of any other benefit under this Article.

 

2.3.1        Amount of Benefit.  The benefit under
this Section 2.3 is the Normal Retirement Benefit amount as described in
Section 2.1.1.

 

2.3.2        Distribution of Benefit.  The Bank shall distribute the annual benefit
to the Executive in twelve (12) consecutive equal monthly installments
commencing

 

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within
thirty (30) days following Normal Retirement Age.  The annual benefit shall be distributed to
the Executive for twenty (20) years.

 

2.4           Change in Control Benefit.  Following a Change in Control, upon the
Normal Retirement Date the Bank shall distribute to the Executive the benefit
described in this Section 2.4 in lieu of any other benefit under this Article.

 

2.4.1        Amount of Benefit.  The benefit under this Section 2.4 is the
Normal Retirement Benefit amount described in Section 2.1.1.  The Executive shall be one hundred percent
(100%) vested in the Normal Retirement Benefit upon a Change in Control.

 

2.4.2        Distribution of Benefit.  The Bank shall
distribute the annual benefit to the Executive in twelve (12) consecutive equal
monthly installments commencing within thirty (30) days following the Normal
Retirement Date.  The annual benefit
shall be distributed to the Executive for twenty (20) years.

 

2.4.3        Parachute Payments.  Notwithstanding any provision of this
Agreement to the contrary, to the extent any distribution(s) or other
benefit(s), if made or otherwise payable, under this Section 2.4 or any other
agreement, contract, arrangement, understanding, plan or program entered into
or maintained by the Bank or any member of a controlled group as defined in
Section 414 of the Code to which the Bank belongs and to which the Executive is
a party or in which he otherwise participates would be treated as a “parachute
payment” under Section 280G of the Code, then the aggregate of all such
distributions and benefits shall be reduced in accordance with Section 4(f) of
the Change in Control Agreement.

 

2.4.4        Early Termination Within
One Year Prior to Change in Control.  Notwithstanding any other
provision to the contrary contained in this Agreement, if there occurs an Early
Termination at any time within one year prior to the occurrence of a Change in
Control, then the Executive shall receive the same benefit amount that he would
have received under this Section 2.4 as a result of such Change in Control if
such Early Termination had not occurred, reduced by any amounts paid to the
Executive in connection with such Early Termination prior to the Change in
Control.

 

2.5           Restriction on Timing of Distribution.  Notwithstanding any provision of this
Agreement to the contrary, if the Executive is considered a “specified employee” under
Section 409A of the Code and regulations thereunder at the time
any benefit distributions otherwise would be payable upon a “separation from
service,” as defined in Section 409A of the Code and regulations thereunder,
such benefit distributions shall be deferred and paid to the Executive six (6)
months after the date of such separation from service.

 

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Article 3

Distribution
at Death

 

3.1           Death During Active
Service.  If
the Executive dies while in the Active Service of the Bank and prior to
reaching Normal Retirement Age, then the Bank shall distribute to the
Beneficiary the benefit described in this Section 3.1.  This benefit shall be distributed in lieu of the
benefits under Article 2.

 

3.1.1        Amount of Benefit.  The benefit under this Section 3.1 is the
Normal Retirement Benefit amount described in Section 2.1.1.

 

3.1.2        Distribution
of Benefit.  The Bank shall
distribute the annual benefit to the Beneficiary in twelve (12) equal monthly
installments commencing within thirty (30) days following receipt by the Bank
of the Executive’s death certificate. 
The annual benefit shall be distributed to the Beneficiary for a period
of twenty (20) years.

 

3.2           Death
During Distribution of a Benefit.  If the Executive dies after any benefit
distributions have commenced under the terms of this Agreement, but before
receiving all such distributions, then the Bank shall distribute to the
Beneficiary the remaining benefits at the same time and in the same amounts
they would have been distributed to the Executive had the Executive survived.

 

3.3           Death
After Separation from Service But Before Benefit Distributions Commence.  If the Executive is entitled to
benefit distributions under this Agreement, but dies prior to the commencement
of said benefit distributions, then the Bank shall distribute to the
Beneficiary the same benefits that the Executive was entitled to prior to death
except that the benefit distributions shall commence within thirty (30) days
following receipt by the Bank of the Executive’s death certificate.

 

Article 4

Beneficiaries

 

4.1           Beneficiary.  The Executive shall have the right, at any
time, to designate a Beneficiary(ies) to receive any
benefit distributions under this Agreement to a Beneficiary upon the death of
the Executive.  The Beneficiary
designated under this Agreement may be the same as or different from the
beneficiary designation under any other plan of the Bank in which the Executive
participates.

 

4.2           Beneficiary
Designation; Change.  The Executive
shall designate a Beneficiary by completing and signing the Beneficiary
Designation Form, and delivering it to the Plan Administrator or its designated
agent.  The Executive’s beneficiary
designation shall be deemed automatically revoked if the Beneficiary
predeceases the Executive or if the Executive names a spouse as Beneficiary and
the marriage is subsequently dissolved. 
The Executive shall have the right to change a Beneficiary by
completing, signing and

 

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otherwise
complying with the terms of the Beneficiary Designation Form and the Plan
Administrator’s rules and procedures, as in effect from time to time.  Upon the acceptance by the Plan Administrator
of a new Beneficiary Designation Form, all Beneficiary designations previously
filed shall be cancelled.  The Plan
Administrator shall be entitled to rely on the last Beneficiary Designation
Form filed by the Executive and accepted by the Plan Administrator prior to the
Executive’s death.

 

4.3           Acknowledgment.  No designation or change in designation of a
Beneficiary shall be effective until received, accepted and acknowledged in
writing by the Plan Administrator or its designated agent.

 

4.4           No
Beneficiary Designation.  If the
Executive dies without a valid beneficiary designation, or if all designated
Beneficiaries predecease the Executive, then the Executive’s spouse shall be
the designated Beneficiary.  If the
Executive dies without a valid beneficiary designation, or if all designated
Beneficiaries predecease the Executive and the Executive has no surviving
spouse, the benefit distributions shall be made to the personal representative
of the Executive’s estate.

 

4.5           Facility of Distribution.  If the Plan Administrator determines in its
discretion that a benefit is to be distributed to a minor, to a person declared
incompetent, or to a person incapable of handling the disposition of that
person’s property, the Plan Administrator may direct distribution of such
benefit to the guardian, legal representative or person having the care or
custody of such minor, incompetent person or incapable person.  The Plan Administrator may require proof of
incompetence, minority or guardianship as it may deem appropriate prior to
distribution of the benefit.  Any
distribution of a benefit shall be a distribution for the account of the
Executive and the Executive’s Beneficiary, as the case may be, and shall be a
complete discharge of any liability under the Agreement for such distribution
amount.

 

Article
5

General
Limitations

 

5.1           Termination
for Cause.  Notwithstanding
any provision of this Agreement to the contrary, the Bank shall not distribute
any benefit under this Agreement if the Executive’s service is terminated for Cause as such term is defined in the Change in Control
Agreement.

 

5.2           Suicide or Misstatement.  Notwithstanding any provision of this
Agreement to the contrary, the Executive shall receive the Early Termination
Benefit described in Section 2.2.1, if either of the following events occurs:

 

(i)            the
Executive commits suicide during Active Service prior to the Normal Retirement
Age and within two years after the Effective Date; or

 

(ii)           the Executive otherwise dies during Active Service prior to
the Normal Retirement Age and any insurance company that issued a life
insurance policy

 

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covering
the Executive and owned by the Bank denies coverage for material misstatements
of fact made by the Executive on an application for such life insurance or for
any other reason.

 

Under such
circumstances, the Early Termination Benefit amount shall be distributed to the
Executive’s Beneficiary in twelve (12) consecutive equal monthly installments
commencing within thirty (30) days following the Executive’s death.  The annual benefit shall be distributed to
the Beneficiary for a period of twenty (20) years.  If the Executive dies under any circumstances
other than as provided in this Section 5.2, then the Executive’s Beneficiary shall
receive the benefit payable under the applicable provision of Article 3 of this
Agreement.

 

5.3           Regulatory
Limitations.  Notwithstanding
any provision of this Agreement to the contrary, the Bank shall not distribute
any benefit under this Agreement if, at the time such benefit otherwise is
payable, the Executive is subject to a final removal or prohibition order
issued by an appropriate federal banking agency pursuant to Section 8(e) of the
Federal Deposit Insurance Act.  In
addition to the foregoing, and not in limitation thereof, any payments to the
Executive pursuant to this Agreement are subject to and conditioned upon their
compliance with Section 18(k) of the Federal Deposit Insurance Act and any
applicable regulations promulgated thereunder.

 

5.4           Confidentiality
and Non-compete Restrictions.  The
Executive shall forfeit any non-distributed benefits under this Agreement if
the Executive fails to comply fully with the terms of Sections 8(a) and 8(b) of
the Change in Control Agreement (the “Confidentiality and Non-compete
Restrictions”).

 

5.4.1        Judicial
Remedies.  In the event of a breach
or threatened breach by the Executive of any provision of the Confidentiality
and Non-compete Restrictions, the Executive recognizes the substantial and
immediate harm that a breach or threatened breach will impose upon the Bank,
and further recognizes that in such event monetary damages may be inadequate to
fully protect the Bank. Accordingly, in the event of a breach or threatened
breach of these restrictions, the Executive agrees that the Bank may obtain
preliminary, interlocutory, temporary or permanent injunctive relief, or any
other equitable relief, protecting and fully enforcing the Bank’s rights
hereunder and preventing the Executive from further breaching any of his
obligations set forth herein.  Nothing
herein shall be construed as prohibiting the Bank from pursuing any other
remedies available to the Bank at law or in equity for such breach or
threatened breach, including the recovery of damages from the Executive.  The Executive expressly acknowledges and
agrees that: (i) the Confidentiality and Non-compete Restrictions are
reasonable, in terms of scope, duration, geographic area, and otherwise, (ii)
the protections afforded the Bank pursuant to the Confidentiality and
Non-compete Restrictions are necessary to protect its legitimate business
interest, (iii) the Confidentiality and Non-compete Restrictions will not be
materially adverse to the Executive’s employment with the Bank, and (iv) his
agreement to observe the

 

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Confidentiality
and Non-compete Restrictions forms a material part of the consideration for
this Agreement.

 

5.4.2        Overbreadth
of Restrictive Covenant.  It is the
intention of the parties that if any restrictive covenant in this Agreement or
in the Confidentiality and Non-compete Restrictions is determined by a court of
competent jurisdiction to be overly broad, then the court should enforce such
restrictive covenant to the maximum extent permitted under the law as to area,
breadth and duration.

 

Article
6

Administration
of Agreement

 

6.1           Plan Administrator Duties.  This Agreement
shall be administered by a Plan Administrator which shall consist of the Board.

 

6.2           Agents.  In the administration of this Agreement, the
Plan Administrator may employ agents and delegate to them such administrative
duties as it sees fit, (including acting through a duly appointed
representative), and may from time to time consult with counsel who may be
counsel to the Bank.

 

6.3           Indemnity of Plan Administrator.  The Bank shall
indemnify and hold harmless the members of the Plan Administrator against any
and all claims, losses, damages, expenses or liabilities arising from any
action or failure to act with respect to this Agreement, except in the case of
willful misconduct by the Plan Administrator or any of its members.

 

6.4           Bank
Information.  To enable the Plan
Administrator to perform its functions, the Bank shall supply full and timely
information to the Plan Administrator on all matters relating to the date and
circumstances of the retirement, Disability, death, or Separation from Service
of the Executive, and such other pertinent information
as the Plan Administrator may reasonably
require.

 

6.5           Annual
Statement. The Plan Administrator shall provide to the Executive, within
one hundred twenty (120) days after the end of each Plan Year, a statement
setting forth the Account Value as of the end of such Plan Year and the
benefits that are payable under this Agreement as of such date.

 

Article 7

Claims
and Review Procedures

 

7.1           Claims
Procedure.  An Executive or
Beneficiary (“claimant”) who has not received benefits under this Agreement
that he or she believes should be distributed shall make a claim for such
benefits as follows:

 

8

 

7.1.1        Initiation
– Written Claim.  The claimant
initiates a claim by submitting to the Plan Administrator a written claim for
the benefits.

 

7.1.2        Timing
of Plan Administrator Response.  The Plan Administrator shall respond to such
claimant within 90 days after receiving the claim.  If the Plan Administrator determines that
special circumstances require additional time for processing the claim, the
Plan Administrator can extend the response period by an additional 90 days by
notifying the claimant in writing, prior to the end of the initial 90-day period, that an additional period is required.  The notice of extension must set forth the
special circumstances and the date by which the Plan Administrator expects to
render its decision.

 

7.1.3        Notice
of Decision.  If the Plan
Administrator denies part or all of the claim, the
Plan Administrator shall notify the claimant in writing of such denial.  The Plan Administrator shall write the
notification in a manner calculated to be understood by the claimant.  The notification shall set forth:

 

(a)           The
specific reasons for the denial;

(b)           A
reference to the specific provisions of this Agreement on which the denial is
based;

(c)           A
description of any additional information or material necessary for the
claimant to perfect the claim and an explanation of why it is needed;

(d)           An
explanation of this Agreement’s review procedures and the time limits
applicable to such procedures; and

(e)           A
statement of the claimant’s right to bring a civil action under ERISA Section
502(a) following an adverse benefit determination on review.

 

7.2           Review
Procedure.  If the Plan Administrator
denies part or all of the claim, the claimant shall
have the opportunity for a full and fair review by the Plan Administrator of
the denial, as follows:

 

7.2.1        Initiation
– Written Request.  To initiate the
review, the claimant, within 60 days after receiving the Plan Administrator’s
notice of denial, must file with the Plan Administrator a written request for
review.

 

7.2.2        Additional
Submissions – Information Access. 
The claimant shall then have the opportunity to submit written comments,
documents, records and other information relating to the claim.  The Plan Administrator shall also provide the
claimant, upon request and free of charge, reasonable access to, and copies of,
all documents, records and other information relevant (as defined in applicable
ERISA regulations) to the claimant’s claim for benefits.

 

7.2.3        Considerations
on Review.  In considering the
review, the Plan Administrator shall take into account all materials and
information the claimant submits relating

 

9

 

to
the claim, without regard to whether such information was submitted or
considered in the initial benefit determination.

 

7.2.4        Timing
of Plan Administrator Response.  The
Plan Administrator shall respond in writing to such claimant within 60 days
after receiving the request for review. 
If the Plan Administrator determines that special circumstances require
additional time for processing the claim, the Plan Administrator can extend the
response period by an additional 60 days by notifying the claimant in writing,
prior to the end of the initial 60-day period, that an
additional period is required.  The
notice of extension must set forth the special circumstances and the date by
which the Plan Administrator expects to render its decision.

 

7.2.5        Notice
of Decision.  The Plan Administrator
shall notify the claimant in writing of its decision on review.  The Plan Administrator shall write the
notification in a manner calculated to be understood by the claimant.  The notification shall set forth:

 

(a)           The
specific reasons for the denial;

(b)           A
reference to the specific provisions of this Agreement on which the denial is
based;

(c)           A
statement that the claimant is entitled to receive, upon request and free of
charge, reasonable access to, and copies of, all documents, records and other
information relevant (as defined in applicable ERISA regulations) to the
claimant’s claim for benefits; and

(d)           A
statement of the claimant’s right to bring a civil action under ERISA Section
502(a).

 

Article 8

Amendments
and Termination

 

8.1           This
Agreement may be amended or terminated only by a written agreement signed by
the Bank and the Executive.  Provided,
however, if the Board determines in good faith that the Executive at any time
prior to Normal Retirement Age is no longer a member of a select group of management
or highly compensated employees, as that phrase applies to ERISA, for reasons
other than death, Disability or retirement, the Bank may terminate this
Agreement and pay benefits to the Executive as follows:

 

8.1.1        Termination
of Agreement Prior to a Change in Control. Upon termination of this
Agreement for the reason stated in the second sentence of Section 8.1 prior to
a Change in Control, the Bank shall distribute to the Executive the Early
Termination benefit described in Section 2.2.1 as if Early Termination occurred
on the date of such termination, regardless of whether Early Termination
actually occurs.  Such amount shall be
distributed to the Executive or his or her Beneficiary in twelve (12)
consecutive equal monthly installments commencing within thirty (30) days
following Separation from Service.  The
annual benefit

 

10

 

shall
be distributed to the Executive for twenty (20) years.  Notwithstanding the foregoing, if this
Agreement is terminated for the reason stated in the second sentence of Section
8.1 at any time within one year prior to a Change in Control, then the benefit
payable under this Section 8.1.1 shall be the same as would be paid under
Section 8.1.2, reduced by any amounts
paid to the Executive in connection with such termination prior to the Change
in Control.

 

8.1.2        Termination of Agreement Following a Change in Control.  Upon termination of this Agreement for the
reason stated in the second sentence of Section 8.1 following a Change in
Control, the Bank shall distribute to the Executive the Change in Control
benefits described in Section 2.4.1.  
Such amount shall be distributed to the Executive or his or her
Beneficiary in twelve (12) equal monthly installments commencing within thirty
(30) days following Separation from Service. 
The annual benefit shall be distributed to the Executive for twenty (20)
years.

 

Additionally, the Bank may amend this Agreement to the extent necessary
to conform to any written directives or guidelines issued by the Bank’s federal
or state banking regulators and to comply with any regulations promulgated in
accordance with Section 409A of the Code.

 

8.2           No Acceleration or Modification. 
Except as otherwise provided in this Agreement, neither the Bank nor the
Executive shall have any right, including without limitation any right under
Section 8.1, to accelerate or modify the time, form or schedule of any payment
or series of payments provided for under this Agreement.

 

Article 9

Miscellaneous

 

9.1           Binding Effect.  This Agreement shall bind the Executive and
the Bank, and their beneficiaries, survivors, executors, administrators and
transferees.

 

9.2           No Guarantee of Employment.  This Agreement is not a contract for
employment.  It does not give the
Executive the right to remain as an employee of the Bank, nor does it interfere
with the Bank’s right to discharge the Executive.  It also does not require the Executive to
remain an employee nor interfere with the Executive’s right to terminate
employment at any time.

 

9.3           Non-Transferability.  Benefits under this Agreement cannot be sold,
transferred, assigned, pledged, attached or encumbered in any manner.

 

9.4           Tax
Withholding.  The Bank shall withhold any taxes that are
required to be withheld, under Section 409A of the Code and regulations
thereunder, from the benefits provided under this Agreement.

 

11

 

9.5           Applicable
Law.  The Agreement and all
rights hereunder shall be governed by the laws of the Commonwealth of
Massachusetts, except to the extent preempted by the laws of the United States
of America.

 

9.6           Unfunded
Arrangement.  The Executive
and Beneficiary are general unsecured creditors of the Bank for the
distribution of benefits under this Agreement. 
The benefits represent the mere promise by the Bank to distribute such
benefits.  The rights to benefits are not
subject in any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance, attachment, or garnishment by creditors.  Any insurance on the Executive’s life or
other informal funding asset is a general asset of the Bank to which the
Executive and Beneficiary have no preferred or secured claim.

 

9.7           Reorganization.  The Bank shall not
merge or consolidate into or with another bank, or reorganize, or sell
substantially all of its assets to another bank, firm, or person unless such
succeeding or continuing bank, firm, or person agrees to assume and discharge
the obligations of the Bank under this Agreement.  Upon the occurrence of such event, the term “Bank”
as used in this Agreement shall be deemed to refer to the successor or survivor
bank.

 

9.8           Entire
Agreement.  This Agreement
constitutes the entire agreement between the Bank and the Executive as to the
subject matter hereof.  No rights are
granted to the Executive by virtue of this Agreement other than those
specifically set forth herein.

 

9.9           Interpretation.  Wherever
the fulfillment of the intent and purpose of this Agreement requires, and the
context will permit, the use of the masculine gender includes the feminine and
use of the singular includes the plural. 
It is the intention of the parties hereto that the provisions of this
Agreement shall comply with the provisions of Section 409A of the Code and this
Agreement shall be interpreted in a manner consistent with such intention.

 

9.10         Alternative
Action.  In the event it shall
become impossible for the Bank or the Plan Administrator to perform any act
required by this Agreement, the Bank or Plan Administrator may in its
discretion perform such alternative act as most nearly carries out the intent
and purpose of this Agreement and is in the best interests of the Bank.

 

9.11         Headings.  Article and section
headings are for convenient reference only and shall not control or affect the
meaning or construction of any of its provisions.

 

9.12         Validity.  In case any provision of this Agreement shall
be illegal or invalid for any reason, said illegality or invalidity shall not
affect the remaining parts hereof, but this Agreement shall be construed and
enforced as if such illegal and invalid provision has never been inserted
herein.

 

12

 

9.13         Notice.  Any notice or filing required or permitted to
be given to the Bank or Plan Administrator under this Agreement shall be
sufficient if in writing and hand-delivered, or sent by registered or certified
mail, to the address below:

 

	
  Enterprise
  Bank and Trust Company

  
	
  222
  Merrimack Street

  
	
  Lowell,
  MA 01852-590

  
	
  Attention:

  	
  John
  P. Clancy, Jr.

  
	
   

  	
  Executive
  Vice President and

  
	
   

  	
  Chief
  Operating officer

  

 

Such notice shall be
deemed given as of the date of delivery or, if delivery is made by mail, as of
the date shown on the postmark on the receipt for registration or
certification.

 

Any notice or filing
required or permitted to be given to the Executive under this Agreement shall
be sufficient if in writing and hand-delivered, or sent by mail, to the last
known address of the Executive.

 

 

IN WITNESS
WHEREOF, the Executive and a duly authorized representative of the Bank have
signed this Agreement as a sealed instrument.

 

	
  EXECUTIVE:

  	
  BANK:

  
	
   

  	
   

  
	
   

  	
  ENTERPRISE
  BANK AND TRUST COMPANY

  
	
   

  	
   

  
	
  /s/ Robert R. Gilman

  	
   

  	
  By:

  	
    /s/ John P.
  Clancy, Jr.

  	
   

  
	
  Robert
  R. Gilman

  	
   

  
	
   

  	
  Title:

  	
    Chief Operating Officer

  	
   

  
						

 

13

 

ENTERPRISE BANK AND TRUST COMPANY

Salary Continuation Agreement

 

BENEFICIARY DESIGNATION FORM

 

o            New
Designation

o            Change
in Designation

 

 

I, Robert R.
Gilman, designate the following as Beneficiary under the Agreement:

 

	
  Primary:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Contingent:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  %

  

 

Notes:

•      Please PRINT
CLEARLY or TYPE the names of the beneficiaries.

•      To name a
trust as Beneficiary, please provide the name of the trustee(s) and the exact
name and date of the trust agreement.

•      To name your
estate as Beneficiary, please write “Estate of _[your
name]_”.

•      Be aware
that none of the contingent beneficiaries will receive anything unless ALL of
the primary beneficiaries predecease you.

 

I understand that
I may change these beneficiary designations by delivering a new written
designation to the Plan Administrator, which shall be effective only upon
receipt and acknowledgment by the Plan Administrator prior to my death.  I further understand that the designations
will be automatically revoked if the Beneficiary predeceases me, or, if I have
named my spouse as Beneficiary and our marriage is subsequently dissolved.

 

	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  

 

 

Received by the
Plan Administrator this
                
day of
                                      ,
2      

 

	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:Exhibit
10.40.1

 

ENTERPRISE
BANK AND TRUST COMPANY

SUPPLEMENTAL
LIFE INSURANCE AGREEMENT

 

THIS
SUPPLEMENTAL LIFE INSURANCE AGREEMENT (the “Agreement”) is adopted this 15th
day of July, 2005, by and between ENTERPRISE BANK AND TRUST COMPANY, a
state-chartered, commercial bank located in Lowell, Massachusetts (the “Bank”),
and GEORGE L. DUNCAN (the “Executive”).

 

The
purpose of this Agreement is to retain and reward the Executive, by dividing
the death proceeds of certain life insurance policies which are owned by
the Bank on the life of the Executive with the designated beneficiary of the
Executive.  The Bank will pay the life
insurance premiums from its general assets.

 

Article 1

Definitions

 

Whenever used in this
Agreement, the following terms shall have the meanings specified:

 

1.1           “Bank’s
Interest” means the benefit set forth in Section 2.1.

 

1.2           “Beneficiary”
means each person designated by the Executive under a current Beneficiary
Designation Form, or in the absence thereof, the estate of the deceased Executive,
entitled to benefits, if any, upon the death of the Executive.

 

1.3           “Beneficiary
Designation Form” means the form established from time to time by the Plan
Administrator that the Executive completes, signs and returns to the Plan
Administrator to designate one or more Beneficiaries.

 

1.4           “Board” means (i) the
Compensation Committee, consisting of three or more members of the Board of
Directors of the Bank, when acting under duly delegated authority from the
Board of Directors, or (ii) the Board of Directors in its entirety, in either
case as from time to time constituted.

 

1.5           “Code”
means the Internal Revenue Code of 1986, as amended.

 

1.6           “Executive’s
Interest” means the benefit set forth in Section 2.2.

 

1.7           “Insurer”
means the insurance company issuing the Policy on the life of the Executive.

 

1.8           “Plan”
or “Enterprise Bank Supplemental Executive Life Insurance Plan” means
the life insurance arrangement set forth in this Agreement.

 

1.9           “Plan
Administrator” means the plan administrator described in Article 10.

 

1.10         “Policy”
or “Policies” means the individual insurance policy or policies adopted
by the Bank for purposes of insuring the Executive’s life under this Agreement.

 

 

1.11         “Separation from Service” means
that the Executive’s service as an employee to the Bank and any member of a
controlled group as defined in Section 414 of the Code to which the Bank
belongs, has terminated for any reason, other than by reason of a leave of
absence approved by the Bank or the death of the Executive.

 

Article 2

Policy
Ownership/Interests

 

2.1           Bank’s
Interest.  The Bank shall own the
Policies and shall have the right to exercise all incidents of ownership and,
subject to Article 3, the Bank may terminate any and all Policies without the
consent of the Executive.  The Bank shall
be the beneficiary of the death proceeds of the Policies in excess of the
amount payable to the Beneficiary according to Section 2.2 below.

 

2.2           Executive’s
Interest.  The Executive, or the
Executive’s assignee, shall have the right to designate the Beneficiary/ies of
an amount of death proceeds, in the aggregate, as specified in Section 2.2.1 or
2.2.2.  The Executive shall also have the
right to elect and change distribution options with respect to the Executive’s
Interest by providing written notice to the Bank and the Insurer.  Without limiting the foregoing, in no event
shall the Executive or any Beneficiary of the Executive’s Interest have access
to any Policy’s cash value.

 

2.2.1        Death
Prior to Separation from Service.  If
the Executive dies while employed by the Bank, the Executive’s Beneficiary/ies
shall be entitled to a benefit equal, in the aggregate, to One Million Five
Hundred Fifty-Six Thousand Fifty-Six Dollars ($1,556,056).

 

2.2.2        Death
After Separation from Service.  If the
Executive dies after Separation from Service, the Executive’s Beneficiary/ies
shall be entitled to a benefit equal, in the aggregate, to One Million Five
Hundred Fifty-Six Thousand Fifty-Six Dollars ($1,556,056).

 

2.3           Forfeiture
of Executive’s Interest.  The
Executive and any assignee of the Executive’s interests hereunder shall forfeit
all rights under Section 2.2 if the Executive fails to comply fully with the
terms of Sections 7.1 and 7.2 of that certain Amended and Restated Employment
Agreement by and among Enterprise Bancorp, Inc., the Bank and the Executive
dated as of January 1, 2004 (the “Confidentiality and Non-compete Restrictions”).  The Bank’s enforcement rights as to the
Confidentiality and Non-compete Restrictions shall be governed by Sections
5.4.1 and 5.4.2 of that certain Salary Continuation Agreement by and between
the Bank and the Executive of even date herewith.

 

Article 3

Comparable
Coverage

 

The Bank may provide the
benefit under this Agreement (as defined in Section 2.2)

 

2

 

through comparable
insurance coverage of the Executive’s life by whatever means the Bank deems
appropriate.  If the Executive forfeits
his right to such benefit pursuant to Section 2.3 or otherwise waives such right,
the Bank may choose to cancel the Policy or Policies on the Executive, or may
continue such coverage and become the direct beneficiary of the entire death
proceeds.

 

Article 4

Premiums
and Imputed Income

 

4.1           Premium
Payment.  The Bank shall pay all premiums
due on all Policies.

 

4.2           Economic
Benefit.  The Bank shall determine at least annually the economic benefit
attributable to the Executive based on the life insurance premium factor for
the Executive’s age multiplied by the aggregate death benefit payable to the
Beneficiary/ies.  The “life insurance
premium factor” is the minimum factor applicable under guidance published
pursuant to Treasury Reg. § 1.61-22(d)(3)(ii) or any subsequent authority.

 

4.3           Imputed
Income.  The Bank shall impute the
economic benefit to the Executive on an annual basis, by adding the economic
benefit to the Executive’s W-2, or if applicable, Form 1099.

 

Article 5

Beneficiaries

 

5.1           Beneficiary.
The Executive shall have the right, at any time, to designate a
Beneficiary(ies) to receive any benefits payable under Section 2.2 of this
Agreement upon the death of the Executive. 
The Beneficiary designated under this Agreement may be the same as or
different from the beneficiary designation under any other plan or agreement of
the Bank in which the Executive participates.

 

5.2           Beneficiary
Designation; Change.  The Executive
shall designate a Beneficiary by completing and signing the Beneficiary
Designation Form, and delivering it to the Bank or its designated agent.  The Executive’s beneficiary designation shall
be deemed automatically revoked if the Beneficiary predeceases the Executive or
if the Executive names a spouse as Beneficiary and the marriage is subsequently
dissolved.  The Executive shall have the
right to change a Beneficiary by completing, signing and otherwise complying
with the terms of the Beneficiary Designation Form and the Bank’s rules and
procedures, as in effect from time to time. 
Upon the acceptance by the Bank of a new Beneficiary Designation Form,
all Beneficiary designations previously filed shall be cancelled.  The Bank shall be entitled to rely on the
last Beneficiary Designation Form filed by the Executive and accepted by the
Bank prior to the Executive’s death.

 

5.3           Acknowledgment.  No designation or change in designation of a
Beneficiary shall be effective until received, accepted and acknowledged in
writing by the Bank or its designated agent.

 

5.4           No
Beneficiary Designation.  If the
Executive dies without a valid designation of beneficiary, or if all designated
Beneficiaries predecease the Executive, then the

 

3

 

Executive’s surviving
spouse shall be the designated Beneficiary. 
If the Executive has no surviving spouse, the benefits shall be made
payable to the personal representative of the Executive’s estate for the
benefit of that estate.

 

5.5           Facility
of Payment.  If the Bank determines
in its discretion that a benefit is to be paid to a minor, to a person declared
incompetent, or to a person incapable of handling the disposition of that
person’s property, the Bank may direct payment of such benefit to the guardian,
legal representative or person having the care or custody of such minor,
incompetent person or incapable person. 
The Bank may require proof of incompetence, minority or guardianship as
it may deem appropriate prior to distribution of the benefit.  Any payment of a benefit shall be a payment
for the account of the Executive and the Executive’s Beneficiary, as the case
may be, and shall be a complete discharge of any liability under the Agreement
for such payment amount.

 

Article 6

Assignment

 

The Executive may
irrevocably assign without consideration all of the Executive’s Interest in
this Agreement to any person, entity, or trust. 
In the event the Executive shall transfer all of the Executive’s
Interest, then all of the Executive’s Interest in this Agreement shall be
vested in the Executive’s transferee, who shall be substituted as a party
hereunder, and the Executive shall have no further interest in this Agreement.

 

Article 7

Insurer

 

The Insurer shall be
bound only by the terms of its given Policy. 
The Insurer shall not be bound by or deemed to have notice of the
provisions of this Agreement.  The
Insurer shall have the right to rely on the Bank’s representations with regard
to any definitions, interpretations or Policy interests as specified under this
Agreement.

 

Article 8

Claims
and Review Procedure

 

8.1           Claims
Procedure.  The Executive or
Beneficiary (“claimant”) who has not received benefits under the Agreement that
he or she believes should be paid shall make a claim for such benefits as
follows:

 

8.1.1        Initiation
– Written Claim.  The claimant
initiates a claim by submitting to the Bank a written claim for the benefits.

 

8.1.2        Timing
of Bank Response.  The Bank shall
respond to such claimant within 90 days after receiving the claim.  If the Bank determines that special
circumstances require additional time for processing the claim, the Bank can
extend the response period by an additional 90 days by notifying the claimant
in writing, prior to the end of the initial 90-day period, that an additional
period is required.  The notice of
extension must set forth the special circumstances and the date by which the

 

4

 

Bank expects to render
its decision.

 

8.1.3        Notice
of Decision.  If the Bank denies part
or all of the claim, the Bank shall notify the claimant in writing of such
denial.  The Bank shall write the
notification in a manner calculated to be understood by the claimant.  The notification shall set forth:

 

(a)           The
specific reasons for the denial;

(b)           A
reference to the specific provisions of this Agreement on which the denial is
based;

(c)           A
description of any additional information or material necessary for the
claimant to perfect the claim and an explanation of why it is needed;

(d)           An
explanation of this Agreement’s review procedures and the time limits
applicable to such procedures; and

(e)           A
statement of the claimant’s right to bring a civil action under Section 502(a)
of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)
following an adverse benefit determination on review.

 

8.2           Review
Procedure.  If the Bank denies part
or all of the claim, the claimant shall have the opportunity for a full and
fair review by the Bank of the denial, as follows:

 

8.2.1        Initiation
– Written Request.  To initiate the
review, the claimant, within 60 days after receiving the Bank’s notice of
denial, must file with the Bank a written request for review.

 

8.2.2        Additional
Submissions – Information Access. 
The claimant shall then have the opportunity to submit written comments,
documents, records and other information relating to the claim.  The Bank shall also provide the claimant,
upon request and free of charge, reasonable access to, and copies of, all
documents, records and other information relevant (as defined in applicable
ERISA regulations) to the claimant’s claim for benefits.

 

8.2.3        Considerations
on Review.  In considering the review,
the Bank shall take into account all materials and information the claimant
submits relating to the claim, without regard to whether such information was
submitted or considered in the initial benefit determination.

 

8.2.4        Timing
of Bank’s Response.  The Bank shall
respond in writing to such claimant within 60 days after receiving the request
for review.  If the Bank determines that
special circumstances require additional time for processing the claim, the
Bank can extend the response period by an additional 60 days by notifying the
claimant in writing, prior to the end of the initial 60-day period, that an
additional period is required.  The
notice of extension must set forth the special circumstances and the date by
which the Bank expects to render its decision.

 

8.2.5        Notice
of Decision.  The Bank shall notify
the claimant in writing of its decision

 

5

 

on review.  The Bank shall write the notification in a
manner calculated to be understood by the claimant.  The notification shall set forth:

 

(a)           The
specific reasons for the denial;

(b)           A
reference to the specific provisions of this Agreement on which the denial is
based;

(c)           A
statement that the claimant is entitled to receive, upon request and free of
charge, reasonable access to, and copies of, all documents, records and other
information relevant (as defined in applicable ERISA regulations) to the
claimant’s claim for benefits; and

(d)           A
statement of the claimant’s right to bring a civil action under ERISA Section
502(a).

 

8.3           Claims
under Policy.  Notwithstanding
anything in this Agreement to the contrary, nothing herein shall affect or
supersede the claims procedure set forth in any Policy with respect to claims
arising under and governed by such Policy, including without limitation, claims
for death proceeds.

 

Article 9

Amendments
and Termination

 

This Agreement may be
amended or terminated only by a written agreement signed by the Bank and the
Executive; provided, however, that the Bank may amend this Agreement to the extent necessary to conform to
any written directives or guidelines issued by the Bank’s federal or state
banking regulators and to comply with any regulations promulgated in accordance
with Section 409A of the Code.

 

Article
10

Administration

 

10.1         Plan
Administrator Duties.  This Agreement
shall be administered by a Plan Administrator which shall consist of the Board.

 

10.2         Agents.  In the administration of this Agreement, the
Plan Administrator may employ agents and delegate to them such administrative
duties as it sees fit, (including acting through a duly appointed
representative), and may from time to time consult with counsel who may be
counsel to the Bank.

 

10.3         Indemnity
of Plan Administrator.  The Bank
shall indemnify and hold harmless the members of the Plan Administrator against
any and all claims, losses, damages, expenses or liabilities arising from any
action or failure to act with respect to this Agreement, except in the case of
willful misconduct by the Plan Administrator or any of its members.

 

10.4         Bank
Information.  To enable the Plan
Administrator to perform its functions, the Bank shall supply full and timely
information to the Plan Administrator on all matters relating to the date and
circumstances of the retirement, death or Separation from Service of the
Executive, and such other pertinent information as the Plan Administrator may

 

6

 

reasonably require.

 

Article 11

Miscellaneous

 

11.1         Binding
Effect.  This Agreement shall bind
the Executive and the Bank, their beneficiaries, survivors, executors,
administrators and transferees and any Beneficiary.

 

11.2         No
Guarantee of Employment.  This
Agreement is not an employment policy or contract. It does not give the
Executive the right to remain an executive or employee of the Bank, nor does it
interfere with the Bank’s right to discharge the Executive.  It also does not require the Executive to
remain an executive nor interfere with the Executive’s right to terminate
employment at any time.

 

11.3         Applicable
Law.  The Agreement and all rights
hereunder shall be governed by and construed according to the laws of the
Commonwealth of Massachusetts, except to the extent preempted by the laws of
the United States of America.

 

11.4         Reorganization.  The Bank shall not merge or consolidate into
or with another company, or reorganize, or sell substantially all of its assets
to another company, firm or person unless such succeeding or continuing
company, firm or person agrees to assume and discharge the obligations of the
Bank under this Agreement.  Upon the
occurrence of such event, the term “Bank” as used in this Agreement shall be
deemed to refer to the successor or survivor company.

 

11.5         Notice.  Any notice or filing required or permitted to
be given to the Bank under this Agreement shall be sufficient if in writing and
hand-delivered, or sent by registered or certified mail, to the address below:

 

Enterprise Bank and Trust
Company

222 Merrimack Street

Lowell, MA 01852-5901

Attention:              John
P. Clancy, Jr.

Executive
Vice President and

Chief
Operating Officer

 

Such notice shall be
deemed given as of the date of delivery or, if delivery is made by mail, as of
the date shown on the postmark or the receipt for registration or
certification.

 

Any notice or filing required or permitted to be given
to the Executive under this Agreement shall be sufficient if in writing and
hand-delivered, or sent by mail, to the last known address of the Executive.

 

11.6         Entire
Agreement.  This Agreement, along with
the Executive’s Beneficiary Designation Form, constitutes the entire agreement
between the Bank and the Executive as to the subject matter hereof.  No rights are granted to the Executive under
this Agreement other than those specifically set forth herein.

 

7

 

11.7         Death
Benefit Under Policy(ies) May Exceed Executive’s Interest.  The Executive acknowledges and agrees that
the aggregate amount of the death benefit payable under any Policy or Policies
may exceed the Executive’s Interest and that any such excess amount shall be
payable to the Bank or its designee.

 

11.8         Death
Benefit Under Policy(ies) Subject to Claims of Creditors.  The Executive acknowledges and agrees that
the aggregate amount of the death benefit payable under any Policy or Policies
is a general asset of the Bank and as such is subject to the claims of the Bank’s
general creditors.  Neither the Executive
nor any Beneficiary has any preferred status or secured claim with respect to
any such benefit amount.

 

IN WITNESS WHEREOF, the
parties have executed this Agreement as of the date indicated above as a sealed
instrument.

 

	
  EXECUTIVE:

  	
  ENTERPRISE BANK AND TRUST
  COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ George L. Duncan

  	
   

  	
  By:

  	
    /s/ John P.
  Clancy, Jr.

  	
   

  
	
  George L. Duncan

  	
   

  
	
   

  	
  Title:

  	
    Chief
  Operating Officer

  	
   

  
						

 

8

 

ENTERPRISE BANK AND TRUST
COMPANY

Supplemental Life
Insurance Agreement

 

BENEFICIARY DESIGNATION FORM

 

o            New Designation

o            Change in Designation

 

I,
George L. Duncan, designate the following as Beneficiary under the Enterprise
Bank Supplemental Executive Life Insurance Plan:

 

	
  Primary:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Contingent:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  %

  

 

Notes:

•      Please PRINT CLEARLY or TYPE the names of the beneficiaries.

•      To name a trust as beneficiary, please provide the name of the
trustee(s) and the exact name and date of the trust agreement.

•      To name your estate as beneficiary, please write “Estate of _[your
name]_”.

•      Be aware that none of the contingent beneficiaries will receive
anything unless ALL of the primary beneficiaries predecease you.

•      Except as otherwise defined in this instrument, the terms used in this
instrument shall have the meaning set forth in the Plan.

 

I
understand that I may change these beneficiary designations by delivering a new
written designation to the Plan Administrator, which shall be effective only
upon receipt and acknowledgment by the Plan Administrator prior to my
death.  I further understand that the
designations will be automatically revoked if the beneficiary predeceases me,
or, if I have named my spouse as beneficiary and our marriage is subsequently
dissolved.  I hereby revoke any and all
previous beneficiary designations made by me under the Plan.

 

 

	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Received
  by the Plan Administrator this       day of                                   ,
  20      .

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
							

 

 

POLICY ENDORSEMENT

 

Contract Owner:   ENTERPRISE BANK AND TRUST COMPANY

 

The
undersigned Owner requests that the policy(ies) shown in the attached Schedule
Page issued by the                                          (the
“Insurer”) provide for the following beneficiary designation:

 

1.  Upon the death of the Insured, proceeds shall
be paid in one sum to the Owner, its successors or assigns, as Beneficiary, to
the extent claimed by said Owner.

 

2.  Any proceeds at the death of the Insured in
excess of the amount paid under the provisions of paragraph 1 of this Policy
Endorsement shall be paid in one sum in accordance with the written direction
of the Owner.  Such direction will be
provided to the Insurer at the time of claim. 
The Insurer will be protected in relying solely on the Owner to provide
the name(s) of the party(ies) to pay any excess not paid under paragraph
1.  If the Owner fails to provide the
name(s) of the party(ies) at the time of claim, then any proceeds payable under
this paragraph shall be paid in one sum to the Beneficiary.

 

3.  It is hereby provided that (i) any payment
made to the Beneficiary or other party under paragraph 2 of this Policy
Endorsement shall be a full discharge of the Insurer to the extent thereof;
(ii) such discharge shall be binding on all parties claiming any interest under
the Policy; and (iii) the Insurer shall have no additional responsibility with
respect to the amounts so claimed.

 

4.  It is agreed by the undersigned that this
designation shall be subject in all respects to the contractual terms of the
Policy.

 

5.  Except as otherwise defined in this instrument, the
terms used in this instrument shall have the meaning set forth in the Enterprise
Bank Supplemental Executive Life Insurance Plan.

 

The
undersigned is signing in a representative capacity for the Owner and warrants
that he or she has the authority to bind the entity on whose behalf this
document is being executed.

 

Signed at
                                                 ,
                         ,
this        day of
                        ,
20      .

 

 

OWNER:

 

ENTERPRISE BANK AND TRUST COMPANY

 

	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  (Signature:
  Bank Officer #1)

  	
   

  	
   

  	
  (Signature:
  Bank Officer #2)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (Printed)

  	
   

  	
   

  	
  (Printed)

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

1

 

Schedule
Page

Policy(ies)
Subject to Policy Endorsement

 

 

	
  Policy Number

  	
  Insured

  
	
   

  	
  George L. Duncan

  
	
   

  	
   

  

 

2

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