Document:

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN WITH DONAT A . FOURNIER

 Exhibit 10.36 
  
 THE BEVERLY NATIONAL BANK 
 SALARY CONTINUATION AGREEMENT 
  
 THIS AGREEMENT is adopted this 11th day of August, 2003, by and between THE BEVERLY NATIONAL BANK, a national bank located in Beverly, Massachusetts (the “Bank”), and DONAT A. FOURNIER (the “Executive”). 
  
 INTRODUCTION 
  
 To encourage the Executive to remain an employee of the Bank, the Bank is
willing to provide salary continuation benefits to the Executive. The Bank will pay the benefits from its general assets. 
  
 AGREEMENT 
  
 The Bank and the Executive agree as follows: 
  
 Article 1 
  
 Definitions 
  
 Whenever used in this Agreement, the following words and phrases shall have the meanings specified: 
  
 1.1 “Change of Control” means the transfer of shares of the Bank’s voting common stock such that one entity or one person acquires
(or is deemed to acquire when applying Section 318 of the Code) more than 50 percent of the Bank’s outstanding voting common stock followed within twelve (12) months by the Executive’s Termination of Employment for reasons other than
death, Disability or retirement. 
  
 1.2 “Code”
means the Internal Revenue Code of 1986, as amended. 
  
 1.3
“Disability” means the Executive’s suffering a sickness, accident or injury which has been determined by the carrier of any individual or group disability insurance policy covering the Executive, or by the Social Security
Administration, to be a disability rendering the Executive totally and permanently disabled. The Executive must submit proof to the Bank of the carrier’s or Social Security Administration’s determination upon the request of the Bank.

  
 1.4 “Early Termination” means the Termination
of Employment before Normal Retirement Age for reasons other than Death, Disability, Termination for Cause or following a Change of Control. 
  
 1.5 “Early Termination Date” means the month, day and year in which Early Termination occurs. 

 1.6 “Effective Date” means July 1, 2003. 
  
 1.7 “Normal Retirement Age” means the Executive attaining
age 65. 
  
 1.8 “Normal Retirement Date” means
the later of the Normal Retirement Age or Termination of Employment. 
  
 1.9 “Plan Year” means a twelve-month period commencing on July 1 and ending on June 30. The initial Plan Year shall commence on the effective date of this Agreement. 
  
 1.10 “Termination for Cause” shall be defined as set forth
in Article 5. 
  
 1.11 “Termination of
Employment” means that the Executive ceases to be employed by the Bank for any reason, voluntary or involuntary, other than by reason of a leave of absence approved by the Bank. 
  
 Article 2 
  
 Lifetime Benefits 
  
 2.1 Normal Retirement Benefit. Upon Termination of Employment on or after the Normal Retirement Age for reasons other than death, the Bank shall
pay to the Executive the benefit described in this Section 2.1 in lieu of any other benefit under this Agreement. 

	

  
 2.1.1
Amount of Benefit. The annual benefit under this Section 2.1 is $100,000 (One Hundred Thousand Dollars). The Bank’s Board of Directors, in its sole discretion, may increase the annual benefit under this Section 2.1.1; however, any
increase shall require the recalculation of Schedule A. 
  
 2.1.2 Payment of Benefit. The Bank shall pay the annual benefit to the Executive in 12 equal monthly installments commencing with the month following the Executive’s Normal Retirement Date, paying the annual benefit to the
Executive for a period of 20 years. 
  
 2.2 Early Termination
Benefit. Upon Early Termination, the Bank shall pay to the Executive the benefit described in this Section 2.2 in lieu of any other benefit under this Agreement. 
  
 2.2.1 Amount of Benefit. The benefit under this Section 2.2 is the Early Termination annual Installment set forth on
Schedule A for the Plan Year ending immediately prior to the Early Termination Date, determined by vesting the Executive in 100 percent of the Accrual Balance as set forth on Schedule A. Any increase in the annual benefit under Section 2.1.1 shall
require the recalculation of this benefit on Schedule A. This benefit is determined by calculating a 20-year fixed annuity from said Accrual Balance, crediting interest on the unpaid balance at an annual rate of 7 percent, compounded monthly.

  
 2.2.2 Payment of Benefit. The Bank shall pay the annual
benefit to the Executive in 12 

 
equal monthly installments commencing with the month following Termination of Employment, paying the annual benefit to the Executive for a period of 20
years. However, in lieu of any other benefit under this Agreement the Executive may petition the Bank in writing to request a lump sum payable within 60 days from Termination of Employment. The Bank in its sole and absolute discretion may accept or
reject such written request. 
  
 2.3 Disability
Benefit. If the Executive terminates employment due to Disability prior to Normal Retirement Age, the Bank shall pay to the Executive the benefit described in this Section 2.3 in lieu of any other benefit under this Agreement. 
  
 2.3.1 Amount of Benefit. The benefit under this Section 2.3 is the
Disability annual Installment set forth on Schedule A for the Plan Year ending immediately prior to Termination of Employment (except during the first Plan Year, the benefit is the amount set forth for Plan Year 1), determined by vesting the
Executive in the Normal Retirement Benefit described in Section 2.1.1. 
  
 2.3.2 Payment of Benefit. The Bank shall pay the annual benefit to the Executive in 12 equal monthly installments commencing with the month following the Executive’s Normal Retirement Age, paying the annual benefit to the
Executive for a period of 20 years. However, in lieu of any other benefit under this Agreement the Executive may petition the Bank in writing to request a lump sum payable within 60 days from Termination of Employment. The Bank in its sole and
absolute discretion may accept or reject such written request. 
  
 2.4 Change of Control Benefit. Upon a Change of Control, the Bank shall pay to the Executive the benefit described in this Section 2.4 in lieu of any other benefit under this Agreement. 
  
 2.4.1 Amount of Benefit. The benefit under this Section 2.4 is the
Change of Control annual Installment set forth on Schedule A for the Plan Year ending immediately prior to Termination of Employment occurs (except during the first Plan Year, the benefit is the amount set forth for Plan Year 1), determined by
vesting the Executive in the Normal Retirement Benefit described in Section 2.1.1. 
  
 2.4.2 Payment of Benefit. The Bank shall pay the annual benefit to the Executive in 12 equal monthly installments commencing with the month following the Executive’s Normal Retirement Age,
paying the annual benefit to the Executive for a period of 20 years. However, in lieu of any other benefit under this Agreement the Executive may petition the Bank in writing to request a lump sum payable within 60 days from the Executive’s
Normal Retirement Date. The Bank in its sole and absolute discretion may accept or reject such written request. 
  
 2.4.3 Excess Parachute Payment. Notwithstanding any provision of this Agreement to the contrary, the Bank will reduce any benefit under this
Agreement by an amount necessary to avoid an excise tax under the excess parachute rules of Section 280G of the Code. 

 Article 3 
  

Death Benefits 
  
 3.1 Death During Active Service. If the Executive dies while in the active service of the Bank, the Bank shall pay to the Executive’s
beneficiary the benefit described in this Section 3.1. This benefit shall be paid in lieu of the benefits under Article 2. 
  
 3.1.1 Amount of Benefit. The annual benefit under this Section 3.1 is the Normal Retirement Benefit amount described in Section 2.1.1. 

 
 3.1.2 Payment of Benefit. The Bank shall pay the annual benefit to
the Executive’s beneficiary in 12 equal monthly installments commencing with the month following the Executive’s death, paying the annual benefit to the Executive’s beneficiary for a period of 20 years. However, the Executive’s
beneficiary may petition the Bank in writing to request a lump sum payable within 60 days from Termination of Employment. The Bank in its sole and absolute discretion may accept or reject such written request. 
  
 3.2 Death During Payment of a Benefit. If the Executive dies after any
benefit payments have commenced under Article 2 of this Agreement but before receiving all such payments, the Bank shall pay the remaining benefits to the Executive’s beneficiary at the same time and in the same amounts they would have been
paid to the Executive had the Executive survived. 
  
 3.3 Death
After Termination of Employment But Before Payment of a Benefit Commences. If the Executive is entitled to a benefit under Article 2 of this Agreement, but dies prior to the commencement of said benefit payments, the Bank shall pay the
same benefit payments to the Executive’s beneficiary that the Executive was entitled to prior to death except that the benefit payments shall commence on the first day of the month following the date of the Executive’s death. 

 
 Article 4 
  
 Beneficiaries 
  
 4.1 Beneficiary Designations. The Executive shall designate a
beneficiary by filing a written designation with the Bank. The Executive may revoke or modify the designation at any time by filing a new designation. However, designations will only be effective if signed by the Executive and received by the Bank
during the Executive’s lifetime. 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. If the Executive dies without a valid beneficiary designation, all payments shall be made to the Executive’s estate. 
  
 4.2 Facility of Payment. If a benefit is payable to a minor, to a person declared incompetent, or to a person incapable of handling the disposition
of his or her property, the Bank may pay 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. Such distribution shall completely discharge the Bank from all liability with respect to such benefit. 

 Article 5 
  

General Limitations 
  
 5.1 Termination for Cause. Notwithstanding any provision of this Agreement to the contrary, the Bank shall not pay any benefit under this Agreement
if the Bank terminates the Executive’s employment for: 
  
 (a) Gross negligence or gross neglect of duties; 
  
 (b) Commission of a felony or of a gross misdemeanor involving moral turpitude; or 
  
 (c) Fraud, dishonesty or willful violation of any law or
significant Bank policy committed in connection with the Executive’s employment and resulting in an adverse effect on the Bank. 
  
 5.2 Suicide or Misstatement. The Bank shall not pay any benefit under this Agreement if the Executive commits suicide within three years after the
date of this Agreement. In addition, the Bank shall not pay any benefit under this Agreement if the Executive has made any material misstatement of fact on an employment application or resume provided to the Bank, or on any application for any
benefits provided by the Bank to the Executive. 
  
 Article 6

  
 Claims and Review Procedure 
  
 6.1 Claims Procedure. Any individual (“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: 
  
 6.1.1 Initiation – Written Claim. The claimant initiates a claim by submitting to the Bank a written claim for the benefits. 
  
 6.1.2 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 Bank expects to render its decision. 
  
 6.1.3 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 ERISA Section 502(a) following an adverse benefit determination
on review. 
  
 6.2 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: 
  
 6.2.1 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. 
  
 6.2.2
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. 
  
 6.2.3 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. 
  
 6.2.4 Timing of Bank 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. 

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

 Article 7 
  

Amendments and Termination 
  
 This Agreement may be amended or terminated only by a written agreement signed by the Bank and the Executive. 
  
 Article 8 
  
 Miscellaneous 
  
 8.1 Binding Effect. This Agreement shall bind the Executive and the
Bank, and their beneficiaries, survivors, executors, successors, administrators and transferees. 
  
 8.2 No Guarantee of Employment. This Agreement is not an employment policy or contract. It does not give the Executive the right to remain an
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.

  
 8.3 Non-Transferability. Benefits under this Agreement
cannot be sold, transferred, assigned, pledged, attached or encumbered in any manner. 
  
 8.4 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. 
  
 8.5 Tax Withholding. The Bank shall
withhold any taxes that are required to be withheld from the benefits provided under this Agreement. 
  
 8.6 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. 
  
 8.7 Unfunded Arrangement. The Executive and beneficiary are general unsecured creditors of the Bank for the payment of benefits under this Agreement. The benefits represent the mere promise by the Bank to pay 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 is a general asset of the Bank to
which the Executive and beneficiary have no preferred or secured claim. 
  
 8.8 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. 

 8.9 Administration. The Bank shall have powers which are necessary to administer this Agreement,
including but not limited to: 
  
 (a)
Establishing and revising the method of accounting for the Agreement; 
  
 (b) Maintaining a record of benefit payments; 
  
 (c) Establishing rules and prescribing any forms necessary or desirable to administer the Agreement; and 
  
 (d) Interpreting the provisions of the Agreement. 
  

8.10 Named Fiduciary. The Bank shall be the named fiduciary and plan administrator under this Agreement. It may delegate to others certain
aspects of the management and operational responsibilities including the employment of advisors and the delegation of ministerial duties to qualified individuals. 
  
 IN WITNESS WHEREOF, the Executive and the Bank have signed this Agreement. 
  

					
	EXECUTIVE:	 	BANK:
	 	 	The Beverly National Bank
			
	 /s/ Donat A. Fournier

	 	By	 	 /s/ Alice B. Griffin

	Donat A. Fournier	 	 	 	 
	 	 	Title	 	Director and Chair of Compensation
	 	 	 	 	CommitteeFORM OF GROUP TERM INSURANCE CARVE OUT PLAN

 Exhibit 10.37 
  
 THE BEVERLY NATIONAL BANK 
 GROUP TERM CARVE OUT PLAN 
  
 THIS PLAN is adopted this 18th day of June, 2004, by and between THE BEVERLY NATIONAL BANK,
nationally-chartered commercial bank located in Beverly, Massachusetts (the “Company”) and the Participant selected to participate in this Plan (the “Participant”). 
  
 INTRODUCTION 
  
 The Company wishes to attract and retain highly qualified executives. To further this objective, the Company is willing to divide the death proceeds of
certain life insurance policies which are owned by the Company on the lives of the participating executives with the designated beneficiary of each insured participating executive. The Company will pay the life insurance premiums from its general
assets. 
  
 Whenever used in this Plan, the following terms shall
have the meanings specified: 
  
 1.1
“Beneficiary” means each designated person, or the estate of a deceased Participant, entitled to benefits, if any, upon the death of a Participant. 
  
 1.2 “Beneficiary Designation Form” means the form established from time to time by the Plan Administrator
that a Participant completes, signs and returns to the Plan Administrator to designate one or more Beneficiaries. 
  
 1.3 “Change of Control” means the transfer of shares of the Company’s voting common stock such that one entity or one person
acquires (or is deemed to acquire when applying Section 318 of the Code) more than 50 percent of the Company’s outstanding voting common stock. 
  
 1.4 “Compensation Committee” means either the Compensation Committee designated from time to time by the Company’s Board of
Directors or a majority of the Company’s Board of Directors, either of which shall hereinafter be referred to as the Compensation Committee. 
  
 1.5 “Disability” means the Participant suffering a sickness, accident or injury which has been determined by the carrier of any
individual or group disability insurance policy covering the Participant, or by the Social Security Administration, to be a disability rendering the Participant totally and permanently disabled. The Participant must submit proof to the Company of
the carrier’s or Social Security Administration’s determination upon the request of the Company. 

 1.6 “Insured” means the individual whose life is insured. 
  
 1.7 “Insurer” means the insurance company issuing the life
insurance policy on the life of the Insured. 
  
 1.8
“Normal Retirement Age” means the participant attaining the age 65. 
  
 1.9 “Normal Retirement Date” means the later of the Normal Retirement Age or the date that the Participant terminates or is terminated for any reason other than Termination for Cause. 
  
 1.10 “Participant” means the employee who is designated by
the Compensation Committee to participate in this Plan, elects in writing to participate in this Plan using the form attached hereto as Exhibit A, signs a Split Dollar Policy Endorsement for each Policy in which the Participant is the Insured, and
completes a Beneficiary Election Form. 
  
 1.11
“Policy” or “Policies” means the individual insurance policy or policies adopted by the Compensation Committee for purposes of insuring a Participant’s life under this Plan. 
  
 1.12 “Plan” means this instrument, including all amendments
thereto. 
  
 1.13 “Termination for Cause” means
that the Company has terminated the Participant’s employment for any of the following reasons: 
  
 (a) Gross negligence or gross neglect of duties; 
  

(b) Commission of a felony or of a gross misdemeanor involving moral turpitude; or 
  
 (c) Fraud, dishonesty or willful violation of any law or
significant Company policy committed in connection with the Participant’s employment and resulting in an adverse effect on the Company. 
  
 1.14 “Base Annual Salary” means the current base annual salary of the Participant at the earliest of: (1) the date of the
Participant’s death; (2) the date of the Participant’s Disability; (3) Change of Control; or (4) the Participant’s Normal Retirement Date. 
  
 1.15 “Years of Employment” means the total number of twelve-month periods during which the Participant has been employed with the
Company. 

 Article 2 
  

Participation 
  
 2.1 Eligibility to Participate. The Compensation Committee in its sole discretion shall designate from time to time executives that are eligible to
participate in this Plan. 
  
 2.2 Participation. The
eligible executive may participate in this Plan by executing an Election to Participate, a Split Dollar Policy Endorsement for each Policy, and a Beneficiary Election Form. The Split Dollar Policy Endorsement shall bind the Participant and his or
her beneficiaries, assigns and transferees, to the terms and conditions of this Plan. An executive’s participation is limited to only Policies where he or she is the Insured. 
  
 2.3 Termination of Participation. A Participant’s rights under this Plan shall cease and his or her
participation in this Plan shall terminate if either of the following events occur: (i) if there is a Termination for Cause; or (ii) if the Participant’s employment with the Company is terminated prior to Normal Retirement Age for reasons other
than Disability (except as set forth in 2.4(B)), or following a Change of Control, or a leave of absence approved by the Company. In the event that the Company decides to maintain the Policy after the Participant’s Termination of Participation
in the Plan, the Company shall be the direct beneficiary of the entire death proceeds of the Policy. 
  
 2.4 Disability. (A) Except as otherwise provided in paragraph (B) of this section 2.4, if the Participant’s employment with the Company is
terminated because of the Participant’s Disability, the Company shall maintain the Policy in full force and effect and, in no event, shall the Company amend, terminate or otherwise abrogate the Participant’s interest in the Policy.
However, the Company may replace the Policy with a comparable insurance policy to cover the benefit provided under this Agreement provided that the Company and the Participant execute a new Split Dollar Policy Endorsement(s). The Policy or any
comparable policy shall be subject to the claims of the Company’s creditors. 
  
 (B) Notwithstanding the provisions of paragraph (A) of this section 2.4, upon the disabled Participant’s gainful employment with an entity other than the Company, the Company shall have no further obligation to
the disabled Participant, and the disabled Participant’s rights pursuant to the Plan shall cease. In the event the disabled Participant’s rights are terminated hereunder and the Company decides to maintain the Policy, the Company shall be
the direct beneficiary of the entire death proceeds of the Policy. 
  
 2.5 Retirement. After the Participant’s Normal Retirement Date, the Company shall maintain the Policy in full force and effect and in no event shall the Company amend, terminate or otherwise abrogate the Participant’s
interest in the Policy. However, the Company may replace the Policy with a comparable insurance policy to cover the benefit under this Agreement provided that the Company and the Participant execute a new Split Dollar Policy Endorsement(s). The
Policy or any comparable policy shall be subject to the claims of the Company’s creditors. 

 Article 3 
  

Policy Ownership/Interests 
  
 3.1 Participant’s Interest. With respect to the Policy or Policies, the Participant or the Participant’s assignee shall have the right to
designate the beneficiary to one of the following death benefit amounts: 
  
 3.1.1 Pre-Retirement Death Benefit. If the Participant was employed by the Company at the time of death, or terminated employment prior to Normal Retirement Age due to Disability, the death benefit shall be one
of the following amounts based on the Participant’s Years of Employment, however, this amount shall not exceed $300,000 (Three Hundred Thousand Dollars): 
  

			
	 Years of Employment

	  	 Amount of Death Benefit

	 Less Than Five
	  	 One Times Base Annual Salary, less $50,000 from the Group Term Policy

	 Five or more
	  	 Two Times Base Annual Salary, less $50,000 from the Group Term Policy

  
 3.1.2
Change of Control. If a Participant is terminated as a result of a Change in Control, the death benefit will be equal to one times Base Annual Salary (not to exceed $300,000). 
  
 3.1.3 Early Voluntary Termination. However, if prior to Normal Retirement Age a Participant
voluntarily terminates his or her employment with the Company, for any reason other than Disability or following a Change of Control, the death benefit will be reduced as follows: 
  

				
	 Years of Employment

	  	Death Benefit Amount

	 5 Years of Employment but less than 10 Years of Employment
	  	$	25,000
	 10 or more Years of Employment
	  	$	50,000

  
 The Participant shall
also have the right to elect and change settlement options with the consent of the Company and the Insurer. 

 3.1.2 Post-Retirement Death Benefit. If the Participant was no longer employed by
the Company at the time of death, and the termination of employment took place upon or after Normal Retirement Age, and the Participant did not undergo Termination for Cause, the death benefit shall be one times the Participant’s Base Annual
Salary, capped at a maximum of $300,000 (Three Hundred Thousand Dollars). If the Participant is eligible and elects to retire before age 65 but after attaining age 62 with not less than five (5) Years of Employment, the death benefit shall be 80%
(Eighty Percent) of the Participant’s Base Annual Salary, capped at $300,000 (Three Hundred Thousand Dollars). The Participant shall also have the right to elect and change settlement options with the consent of the Company and the Insurer.

  
 3.2 Company’s Interest. The Company shall own the
Policies and shall have the right to exercise all incidents of ownership except that the Company shall not sell, surrender or transfer ownership of a Policy so long as a Participant has an interest in the Policy as described in section 3.1. This
provision shall not impair the right of the Company to terminate this Plan. With respect to each Policy, the Company shall be the beneficiary of the remaining death proceeds of the Policy after the Participant’s Interest is determined according
to section 3.1. 
  
 3.3 Option to Purchase. The Company
shall not sell, surrender or transfer ownership of a Policy without first giving a Participant or the Participant’s transferee the option to purchase the Policy for a period of 60 days from written notice of such intention. The purchase price
shall be an amount equal to the cash surrender value of the Policy. This provision shall not impair the right of the Company to terminate this Agreement. 
  
 Article 4 
  
 Premiums 
  
 4.1 Premium Payment. The Company shall pay all premiums due on all Policies. 
  
 4.2 Economic Benefit. The Company shall determine the economic benefit attributable to the Participant based on the amount of the current term rate for the Participant’s age multiplied by the aggregate
death benefit payable to the Participant’s Beneficiary. The “current term rate” is the minimum amount required to be imputed under Internal Revenue Notice 2002-8, or any subsequent applicable authority. 
  
 4.3 Imputed Income. The Company shall impute the economic benefit to
the Participant on an annual basis, by adding the economic benefit to a Participant’s W-2, or if applicable, Form 1099. 

 Article 5 
  

Assignment 
  
 Any Participant may assign without consideration all interests in his or her Policy and in this Plan to any person, entity or trust. In the event a
Participant shall transfer all of his or her interest in the Policy, then all of that Participant’s interest in his or her Policy and in this Plan shall be vested in his or her transferee, who shall be substituted as a party hereunder, and that
Participant shall have no further interest in his or her Policy or in this Plan. 
  
 Article 6 
  
 Insurer

  
 The Insurer shall be bound only by the terms of a given
Policy. Any payments the Insurer makes or actions it takes in accordance with a Policy shall fully discharge it from all claims, suits and demands of all persons relating to that Policy. The Insurer shall not be bound by the provisions of this Plan.
The Insurer shall have the right to rely on the Company’s representations with regard to any definitions, interpretations or Policy interests as specified under this Plan. 
  
 Article 7 
  
 Claims and Review Procedure 
  
 7.1 Claims Procedure. Any person or entity who has not received benefits under this Plan that he or she believes should be paid
(“claimant”) shall make a claim for such benefits as follows: 
  
 7.1.1 Initiation – Written Claim. The claimant initiates a claim by submitting to the Company a written claim for the benefits. 
  
 7.1.2 Timing of Company Response. The Company shall respond to such claimant within 90 days after
receiving the claim. If the Company determines that special circumstances require additional time for processing the claim, the Company 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 Company expects to render its decision. 
  
 7.1.3 Notice of Decision. If the Company denies part
or all of the claim, the Company shall notify the claimant in writing of such denial. The Company 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 the Plan 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 the Plan’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 Company denies part or all of the claim, the claimant shall have the opportunity for a full and fair review by the Company of the denial, as follows: 
  
 7.2.1 Initiation – Written Request. To initiate
the review, the claimant, within 60 days after receiving the Company’s notice of denial, must file with the Company 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 Company 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 Company 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. 
  
 7.2.4 Timing of Company Response. The Company shall respond in writing to such claimant within 60 days after receiving the request for review. If the Company determines that special circumstances require
additional time for processing the claim, the Company 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 Company expects to render its decision. 
  
 7.2.5 Notice of Decision. The Company shall notify the claimant in writing of its decision on review. The Company 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 the Plan 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 Amendment or Termination of Plan. Except as otherwise provided in
sections 2.3, 2.4, 2.5 and 8.2, the Company may amend or terminate this Plan and/or a Participant’s rights under this Plan at any time prior to a Participant’s death by written notice to the Participant. 
  
 8.2 Amendment or Termination of Plan Upon Change of Control.
Notwithstanding the provisions of section 8.1, in the event of a Change of Control, the Company, or its successor, shall maintain in full force and effect each Policy that is in existence on the date the Change of Control occurs and shall not
terminate or otherwise abrogate a Participant’s interest in the Policy, unless the Company replaces the Policy with a comparable insurance policy to cover the benefit provided under this Agreement and the Company and the Participant shall
execute a new Split Dollar Policy Endorsement. The Policy or any comparable policy shall be subject to the claims of the Company’s creditors. This section 8.2 shall apply to all Participants in the Plan on the date the Change of Control occurs,
including but not limited to (i) a retired Participant who has an interest in a Policy pursuant to section 2.5; (ii) a disabled Participant who has an interest in the Policy pursuant to section 2.4; and (iii) a Participant whose employment is
terminated as a result of a Change of Control. 
  
 8.3 Waiver
of Participation. A Participant may, in the Participant’s sole and absolute discretion, waive his or her rights under the Plan at any time. Any waiver permitted under this section 8.3 shall be in writing and delivered to the Board of
Directors of the Company. 
  
 8.4 Policy Retention. In the
event that the Company decides to maintain the Policy after the Participant or Participant’s transferee no longer has an interest in the Policy, the Company shall be the direct beneficiary of the entire death proceeds of the Policy. 

 
 8.5 Suicide or Misstatement. The Company shall not pay any benefit
under this Plan if a Participant commits suicide within three years after the date of this Plan. In addition, the 

 
Company shall not pay any benefit under this Plan if a Participant has made any material misstatement of fact on an employment application or resume provided
to the Company, or on any application for any benefits provided by the Company to the Participant. 
  
 Article 9 
  
 Miscellaneous 
  
 9.1 Binding Effect. This
Plan in conjunction with their corresponding Split Dollar Policy Endorsement shall bind each Participant and the Company, their beneficiaries, survivors, executors, administrators and transferees and any Policy beneficiary. 
  
 9.2 No Guarantee of Employment. This Plan is not an employment policy
or contract. It does not give a Participant the right to remain an employee of the Company, nor does it interfere with the Company’s right to discharge a Participant. It also does not require a Participant to remain an employee nor interfere
with a Participant’s right to terminate employment at any time. 
  
 9.3 Applicable Law. The Plan 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.

  
 9.4 Reorganization. The Company 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
Company under this Plan. Upon the occurrence of such event, the term “Company” as used in this Plan shall be deemed to refer to the successor or survivor company. 
  
 9.5 Notice. Any notice, consent or demand required or permitted to be given under the provisions of this Plan by one
party to another shall be in writing, shall be signed by the party giving or making the same, and may be given either by delivering the same to such other party personally, or by mailing the same, by United States certified mail, postage prepaid, to
such party, addressed to his/her last known address as shown on the records of the Company. The date of such mailing shall be deemed the date of such mailed notice, consent or demand. 
  
 9.6 Entire Agreement. This Plan along with a Participant’s
Election to Participate and Split Dollar Policy Endorsement(s) constitutes the entire agreement between the Company and the Participant as to the subject matter hereof. No rights are granted to the Participant under this Plan other than those
specifically set forth herein. 

 9.7 Administration The Company shall have powers which are necessary to administer this Plan,
including but not limited to: 
  

	 	(a)	Interpreting the provisions of this Plan; 

  

	 	(b)	Establishing and revising the method of accounting for this Plan; 

  

	 	(c)	Maintaining a record of benefit payments; and 

  

	 	(d)	Establishing rules and prescribing any forms necessary or desirable to administer this Plan. 

  
 9.8 Designated Fiduciary. The Company shall be the named fiduciary and plan administrator under this Agreement. The
named fiduciary may delegate to others certain aspects of the management and operation responsibilities of the plan including the employment of advisors and the delegation of ministerial duties to qualified individuals. 
  
 ARTICLE 10 
  
 BENEFICIARIES 
  
 10.1 Beneficiary. The Participant shall have the right, at any time,
to designate a Beneficiary(ies) to receive any benefits payable under the Agreement to a beneficiary upon the death of the Participant. The Beneficiary designated under this Agreement may be the same as or different from the Beneficiary designation
under any other Agreement of the Company in which the Participant participates. 
  
 10.2 Beneficiary Designation; Change. The Participant shall designate a Beneficiary by completing and signing the Beneficiary Designation Form, and delivering it to the Company or its designated agent. The
Participant’s beneficiary designation shall be deemed automatically revoked if the Beneficiary predeceases the Participant or if the Participant names a spouse as Beneficiary and the marriage is subsequently dissolved. The Participant shall
have the right to change a Beneficiary by completing, signing and otherwise complying with the terms of the Beneficiary Designation Form and the Company’s rules and procedures, as in effect from time to time. Upon the acceptance by the Company
of a new Beneficiary Designation Form, all Beneficiary designations previously filed shall be cancelled. The Company shall be entitled to rely on the last Beneficiary Designation Form filed by the Participant and accepted by the Company prior to the
Participant’s death. 
  
 10.3 Acknowledgment. No
designation or change in designation of a Beneficiary shall be effective until received, accepted and acknowledged in writing by the Company or its designated agent. 

 10.4 No Beneficiary Designation. If the Participant dies without a valid designation of
beneficiary, or if all designated Beneficiaries predecease the Participant, then the Participant’s surviving spouse shall be the designated Beneficiary. If the Participant has no surviving spouse, the benefits shall be made payable to the
personal representative of the Participant’s estate. 
  
 10.5
Facility of Payment. If the Company 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 Company 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 Company 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 Participant and the Participant’s Beneficiary, as the case may be, and shall be a complete discharge of any liability under the
Agreement for such payment amount. 
  
 IN WITNESS WHEREOF,
the Company executes this Plan as of the date indicated above. 
  

			
	COMPANY:
	
	The Beverly National Bank
		
	By	 	 /s/ Donat A. Fournier

	Title	 	President

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